RATING RATIONALE
16Feb2024

Tasty Dairy Specialities Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 95.00 Crs. of Tasty Dairy Specialities Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Nov 2022)
Present
Fund Based 94.00 94.00 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 1.00 1.00 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 95.00 95.00 (Rupees Ninety Five 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.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings (BWR) reaffirms the rating of bank loans of Tasty Dairy Specialities Ltd.(TDSL, or 'the company) at BWR D and continues the same under the Issuer Not Cooperating* category as a result of no information available on the curing of default. The rating considers the information provided in the independent auditors' review report as available in the public domain. The bank loans are currently in the Sub-standard class with the existing lenders due to delays in debt servicing and irregularities in the conduct of bank loans. The issuer and the lenders did not respond to the emails sent by BWR. Further, the issuer has not been submitting monthly No Default Statement (NDS) with BWR for a long time. Accordingly, the ratings continue to remain under 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 the 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 the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholdings of the information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Fast Moving Consumer Goods Fast Moving Consumer Goods Food Products Dairy Products

Promoted by Mr. Atul Mehra, the Company was originally incorporated as a private limited company on 30th July 1992 under the name Tasty Dairy Specialities Private Limited. Subsequently, it was converted into Public Limited Company in 2004 and the name of the company was changed to “Tasty Dairy Specialities Limited ''. The Company is listed in the SME segment on the Bombay Stock Exchange. The Company is currently involved in processing milk, along with bulk milk procurement and handling which primarily caters to bulk institutional customers. The company is further involved in value-added milk products like Skimmed Milk Powder, Butter, Ghee, etc. which are packaged under the brand names “Ujjwal”, “Shikhar”, “Verifresh”, "Cima", "Mithai Master”. The Company markets the branded products in Uttar Pradesh, Madhya Pradesh, and Bihar, and its plant is located in Jainpur, Kanpur Dehat, Uttar Pradesh. This unit has state of art ISO 22000:2005 certified milk processing system. The company handles manufacturing of milk and milk-based products, starting with 200 litres of liquid milk per day. Today we have processing facility of about 3.5 lakh litres of milk per day, giving direct and indirect employment to people in and around Kanpur.

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

No outstanding ratings with any other CRA.

ANY OTHER INFORMATION

As per the information available in the public domain, the company is undergoing the restructuring process for its default in repayment to lenders due to the severe impact of COVID-19 which caused the piling of inventory and due to the limited shelf life of the perishable products, delay in collections from debtors, led to the said instances. However, as per the latest information, the restructuring plans have become overdue for payment. The management of the company is in touch with the lenders for a revival/ settlement plan.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 94.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
16Nov2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
26Jul2021
BWR BBB-Stable
(Downgrade)
0.00
NA
NA
NA
NA
NA
24Dec2021
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 1.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
16Nov2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
26Jul2021
BWR A3
(Downgrade)
0.00
NA
NA
NA
NA
NA
24Dec2021
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 95.00 (Rupees Ninety Five 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

Diksha Jain

Rating Analyst diksha.j@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Tasty Dairy Specialities 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 Kotak Mahindra Bank Bill Discounted (BD)Sanctioned 8.00 _ 8.00
2 Punjab National Bank Bank GuaranteeSanctioned _ 1.00 1.00
3 Punjab National Bank Term LoanSanctioned 1.35 _ 1.35
4 Punjab National Bank Cash CreditSanctioned 44.00 _ 44.00
5 Punjab National Bank Bill Discounted (BD)Sanctioned 10.00 _ 10.00
6 Un tied portion Facilities FB (CC/TL/OD)Proposed 30.65 _ 30.65
Total 94.00 1.00 95.00
TOTAL (Rupees Ninety Five Crores Only)
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