RATING RATIONALE
06Feb2023

Punjab Riceland Pvt. Ltd.

Brickwork Ratings downgrades the long term/ short term ratings for the Bank Loan Facilities of Rs. 48.04 Crs. of Punjab Riceland Pvt. Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Feb 2022)
Present
Fund Based 2.63 2.63 Long Term BWR BB+/Stable
Assignment
BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
44.69 44.69 Short Term BWR A4+
Assignment
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 0.72 0.72 Short Term BWR A4+
Assignment
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Grand Total 48.04 48.04 (Rupees Forty Eight Crores and Four lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Downgraded the long term and short term rating to BWR BB/A4 (Issuer Not Cooperating) based on the best available information as the issuer did not cooperate. The rating due for a review in February 2023. BWR took up with the issuer to provide the  required information over emails and through telephone calls. Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the concern’s financial performance. Besides, the No Default Statement has not been submitted by the client every month, despite follow-up. Banker's feedback has not been received.

Thus, BWR has downgraded the long term and short term rating to BWR BB/A4 with Stable outlook and migrate the ratings under the “Issuer Not Cooperating” category.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY

Punjab Riceland Private Limited commenced business in 1993 at Punjab, It engaged in manufacturing of basmati rice through mills with the capacity of 7MT rice per hour. The manufacturing plant unit is located at Chabhal Road, Taran, Punjab. Mr. Rajiv Aggarwal, the Managing Director, has to his credit 40 years’ of experience in this business manages the operations of the firm.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Crisil continuous the rating of Punjab Riceland Pvt.Ltd. under Issuer Non Cooperation via press release dated 24th January 2023.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 2.63
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
01Feb2022
BWR BB+Stable
(Assignment)
NA
NA
NA
NA
Fund Based ST 44.69
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
01Feb2022
BWR A4+
(Assignment)
NA
NA
NA
NA
Non Fund Based ST 0.72
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
01Feb2022
BWR A4+
(Assignment)
NA
NA
NA
NA
Grand Total 48.04 (Rupees Forty Eight Crores and Four lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Kartik Arora

Ratings Analyst kartik.a@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Punjab Riceland Pvt. Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Punjab National Bank Cash Credit 2.63 _ 2.63
2 Punjab National Bank Packing Credit (PC) _ 44.69 44.69
3 Punjab National Bank Forward Contract _ 0.72 0.72
Total 2.63 45.41 48.04
TOTAL (Rupees Forty Eight Crores and Four lakhs Only)
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Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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