RATING RATIONALE
29May2023

Sri Annapurna Rice Industry

Brickwork Ratings downgrades/reaffirms the ratings for the Bank Loan Facilities of Rs. 12.00 Crs. of Sri Annapurna Rice Industry based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(25 May 2022)
Present
Fund Based 6.50 6.50 Long Term BWR B+ /Stable
Upgrade
BWR B /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 5.50 5.50 Short Term BWR A4
Reaffirmation
BWR A4
ISSUER NOT COOPERATING* /Reaffirmation
Grand Total 12.00 12.00 (Rupees Twelve Crores 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.
*** The limits have been taken over by the HDFC Bank during November 20221 from PNB


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

BWR took up with the company to provide the required information over emails and through telephonic communication. As the rating is due for review on May 2023. Despite the best efforts of BWR to get at least the minimum information for a review, the company has not provided the same and has not been submitting NDS to BWR.

The lenders may note to exercise due caution while using the rating which mentions "Issuer Not Cooperating" since the rating lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/bank's interaction.

In absence of adequate information, non-submission of no default statement and lack of management cooperation, the rating action is recommended based on best available information as the issuer did not cooperate. Accordingly, appropriate press releases will be made on our website. The rating of the said instrument is as follows - downgrade of the long-term rating at “BWR B/Stable” and reaffirmation of the short-term rating at “BWR A4” with continuation in 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 the required information for a review of the assigned rating may also be accompanied by financial stress.

ABOUT THE ENTITY

Sri Annapurna Rice Industry (SARI), established as a partnership firm in March 2017, is located at Mandapeta, East Godavari District of Andhra Pradesh. The firm has entered a lease agreement with Sai Krishna Raw & Boiled Rice Mill and Vijayalakshmi Rice Mill for processing paddy. It is spread across 3 acres of land with 2 rice processing units with a validity period of 6 years (06/01/2020 to 31/10/2026). SARI engaged in the milling of paddy to produce raw rice, parboiled rice, and by-products like broken rice, husk, and rice bran and sold the rice under the unregistered brand name of Gemini. The firm’s installed capacity is 22 Tonnes per hour and the utilized capacity is 90%. The firm procures paddy from the states of Bihar, Bengal, Orissa, Tamil Nadu, and Andhra Pradesh. The go down has a Capacity of 50,000 quintals of paddy. The firm undertakes job work for FCI under the Customs Milled Rice (CMR) scheme. 
 
Mr.M Venkateswara Rao is the managing partner of the firm and has a managing interest in other entities also.

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. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

ANY OTHER INFORMATION

NA

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 6.50
BWR B/Stable
(ISSUER NOT COOPERATING* /Downgrade)
25May2022
BWR B+ Stable
(Upgrade)
13Mar2021
BWR B Stable
(Reaffirmation)
27Jan2020
BWR B Stable
(Assignment)
Non Fund Based ST 5.50
BWR A4
(ISSUER NOT COOPERATING* /Reaffirmation)
25May2022
BWR A4
(Reaffirmation)
13Mar2021
BWR A4
(Reaffirmation)
27Jan2020
BWR A4
(Assignment)
Grand Total 12.00 (Rupees Twelve Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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

Himanshu Seth

Rating Analyst himanshu.s@brickworkratings.com

Nagaraj K

Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sri Annapurna Rice Industry
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 HDFC Bank Cash CreditSanctioned 6.50 _ 6.50
2 HDFC Bank Bank GuaranteeSanctioned _ 5.50 5.50
Total 6.50 5.50 12.00
TOTAL (Rupees Twelve Crores Only)
Print and Digital Media

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About Brickwork Ratings

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