Brickwork Ratings downgrades the long-term and reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 30.00 Crs. of Simran Farms Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (05 Sep 2022) |
Present | ||
Fund Based | 30.00 | 30.00 | Long Term |
BWR BB+/Stable
ISSUER NOT COOPERATING* /Downgrade |
BWR BB -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | (5.00) | (5.00) | Short Term |
BWR A4
ISSUER NOT COOPERATING* /Downgrade |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 30.00 | 30.00 | (Rupees Thirty Crores Only) |
The rating were due for review in September 2023. Brickwork ratings(BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer and continued lack of management cooperation, The company has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation, Brickwork Ratings has downgraded the long-term rating to 'BWR BB-/Stable' from 'BWR BB+/Stable' and reaffirmed the short-term rating at 'BWR A4' and continued the ratings in the Issuer Not Cooperating* category
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 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Fast Moving Consumer Goods | Fast Moving Consumer Goods | Food Products | Meat Products including Poultry |
The Simran group was established in 1980 by the Bhatia Family. Later on, as a result of strong determination and goal of serving the society with nutritional poultry products and delivering actual value to its customers through products and services at large, the Company, Simran Farms Limited (SFL) was incorporated in 1984 in Indore, Madhya Pradesh and was converted into a public limited company in 1993. Today the group is popularly known as “Simran Group”.
The company is mainly focused on integration and consolidation of poultry products and activities. Its most modernized parent poultry breeding farms are located near Indore in Madhya Pradesh. The company’s hatcheries and contract farms are located in Madhya Pradesh, Chhattisgarh, Gujarat, Rajasthan, Punjab, Jammu & Maharashtra. The breeding farms have state-of-the-art automation systems, cages for scientific rearing and artificial insemination and balanced nutrition management for each bird. The company has also proposed to expand its parent farm capacity and will also be increasing the contract farms in near future.
Simran Farms Ltd is being headed by Mr. Harinder Singh Bhatia, Mr. Kawaljeet Singh Bhatia, Mr. Gurdeep Singh Bhatia as SFL directors and Dr. Surendra Singh, Mr. Surjeet Singh Kohli, Mrs. Jasmeet Kaur Bhatia as independent directors who altogether look after its overall working operations.
The major part of SFL’s revenue is generated from selling broilers. SFL supplies its products to wholesalers & retailers located in various states of India such as Maharashtra, Chhattisgarh, Gujarat and Madhya Pradesh.
SFL has feeds/units/hatchery farms/ shades located mainly in Indore, Bhopal, Chhatisgarh & Madhya Pradesh.
The registered office of the company is located at Indore, Madhyapradesh.
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
No rating with other CRAs.
ANY OTHER INFORMATIONN.A
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 | 30.00 |
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
05Sep2022 |
BWR BB+Stable
(ISSUER NOT COOPERATING* /Downgrade) |
10May2021 |
BWR BBB- Stable
(Reaffirmation) |
17Jan2020 |
BWR BBB- Stable
(Reaffirmation) |
NFB SubLimit | ST | (5.00) |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
05Sep2022 |
BWR A4
(ISSUER NOT COOPERATING* /Downgrade) |
10May2021 |
BWR A3
(Reaffirmation) |
17Jan2020 |
BWR A3
(Reaffirmation) |
Grand Total | 30.00 | (Rupees Thirty Crores Only) |
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 CriteriaAnalytical Contacts | |
---|---|
Kishor G S Rating Analyst kishor.gs@brickworkratings.com |
RamaKrishna Director - Ratings ramakrishna@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
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 CreditSanctioned | 30.00 | _ | 30.00 | |
Sub-Limit (Inland LC / FLC) Sanctioned | (5.00) | |||||
Total | 30.00 | 0.00 | 30.00 | |||
TOTAL (Rupees Thirty Crores Only) |
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