RATING RATIONALE
16Aug2023

Natraj Proteins Ltd.

Brickwork Ratings downgrades the long term ratings and reaffirms the short term ratings for the Bank Loan Facilities of Rs. 45.50 Crs. of Natraj Proteins Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(23 Aug 2022)
Present
Fund Based 45.00 45.00 Long Term BWR BB-/Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B + /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 0.50 0.50 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 45.50 45.50 (Rupees Forty Five Crores and Fifty 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

BWR downgrades the long term rating to BWR B+ and reaffirms the short term rating at BWR A4 and continued the same under the ISSUER NOT COOPERATING* category for the bank loan facilities of Natraj Proteins Ltd based on the best available information.

The rating was last reviewed on 23rd August 2022. 
BWR followed up with the company via emails to get updates on the current happenings in the company. The company has not provided the information required to execute the annual review however the surveillanc has been done based on the publicly available information.
The company did not cooperate for a review of the rating for the bank loan facilities of Rs. 45.50crs. The company has not provided any information wrt business, management, operations, latest liquidity, etc. for its review.

The company is migrated to INC category in August 2022. BWR has followed up with the bank, however ther's no information available from the bank regarding the status of the bank account hence, Brickwork Ratings downgrades the long term rating to BWR B+ and reaffirms the short term rating at BWR A4 and continued under the ISSUER NOT COOPERATING* category, based on the best available information.

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

LIMITATIONS OF THE RATING

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

ABOUT THE ENTITY

NPL, incorporated as a Public Ltd. Co. in 1994, was promoted by Mr. Kailash  Sharma, Mr. J P Agarwal and Mr. Sharad Kumar Jain. The company is engaged in solvent extraction and refining of Soybean edible oil and Soya DOC. It procures soybean seeds from local markets/mandis. The Company's manufacturing plant at Itarsi(MP), has a seed crushing installed capacity of 1.00 lakh Tonnes per annum and a refining capacity of 25000 Tonnes per annum. The company's products / by products are Refined Soybean oil, Crude Soybean Oil, Soya DE-Oiled Cakes, Lecithin, Acid Oil, Fatty Acid, Soya Gums/ Sludge and Coal ash.

Company is selling Soya Refined Oil (edible Oil) in consumable packing under the brand name “Poushtik'' and De-Oiled-Cake is sold without brand name. Majority of oil is sold wholesale in drums/tankers to other resellers/re-packers.

As per the Annual Report for FY 2021-22, the company does not have any subsidiary company.

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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 45.00
BWR B+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
23Aug2022
BWR BB-Stable
(Downgrade/ISSUER NOT COOPERATING*)
03May2021
BWR BB Stable
(Reaffirmation and Removed from the INC category)
17Nov2020
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 0.50
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
23Aug2022
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
03May2021
BWR A4
(Reaffirmation and Removed from the INC category)
17Nov2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 45.50 (Rupees Forty Five Crores and Fifty lakhs 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

Sonali Mittal

Rating Analyst sonali.m@brickworkratings.com

Bal Krishna Piparaiya

Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Natraj Proteins 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 Bank of Baroda Cash CreditSanctioned 25.00 _ 25.00
2 Bank of Baroda Bank GuaranteeSanctioned _ 0.50 0.50
3 Bank of Baroda Cash Credit (WHR)Sanctioned 20.00 _ 20.00
Total 45.00 0.50 45.50
TOTAL (Rupees Forty Five Crores and Fifty lakhs Only)
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