Brickwork Ratings reaffirms the long term rating for the Bank Loan Facilities of Rs. 8.09 Crs. of Ashutosh Flour Mill based on best available information, as the issuer did not cooperate.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (11 Aug 2023) |
Present | ||
| Fund Based | 8.09 | 8.09 | Long Term |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
| Grand Total | 8.09 | 8.09 | (Rupees Eight Crores and Nine lakhs Only) | ||
BWR has Reaffirmed the long-term rating at "BWR C" for the bank loan facility of Ashutosh Flour Mill" and continued under the 'Issuer Not Cooperating' category as the issuer did not cooperate.
BWR had initially assigned the long term rating of BWR B+/Stable for the bank loan facilities of Rs 8.18 Cr of Ashutosh Flour Mill on 09 Feb 2018. On 06 June 2019 the long term rating was reaffirmed at BWR B+/Stable. On 03 Jul 2020 the long term rating was downgraded to BWR B/Stabe and the rating migrated to Issuer Not Cooperating category as the issuer did not cooperate. On 18 Aug 2021 the long term rating was downgraded to BWR B-/Stabe and the rating continued under Issuer Not Cooperating category. On 05 Aug 2022 the long term rating was downgraded to BWR C and the rating continued under Issuer Not Cooperating category. On 11 Aug 2023 the long term rating was reaffirmed at BWR C and the rating continued under Issuer Not Cooperating category.
Going forward, BWR took up with the issuer consistently to provide required information over emails apart from telephonic communication, but no response has been received from the client. Further, BWR is unable to reach the banker; the banker's feedback regarding the conduct of the account is not available. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the absence of adequate information from the firm, BWR is unable to assess the firm's financial performance and its ability to service its debt and maintain a valid rating.
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, noncooperation 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 ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Consumer Discretionary | Consumer Services | Other Consumer Services | Food Storage Facilities |
Ashutosh Flour Mill was established in 2004 as a family based Partnership firm. The firm is engaged in processing of wheat into atta, maida, sooji, choker and dalia at its manufacturing unit with 60% utilization capacity per month. The firm has around 4-5 godowns where the raw materials like wheat, paddy are stored. The firm is part of the Group Jaswanti Group of Industries, which is an agro based group in which the companies are involved in agro product manufacturing. The group companies include Jaswanti Rice Mill, Jai Guru Mill, JV seeds, Jaswanti quality. Mr. Vijaykumar Agarwal and Mr. Tanuj Agarwal are the partners.
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
| Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
|---|---|---|
| CRISIL | CRISIL Ratings has been consistently following up with Ashutosh Flour Mill (AFM) for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative.Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AFM, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AFM is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of AFM continues to be ‘CRISIL B+/Stable Issuer Not Cooperating’ as on 17 Oct 2023. | 17Oct2023 |
NA
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 | 8.09 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
11Aug2023 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
05Aug2022 |
BWR C
(Downgrade/ISSUER NOT COOPERATING*) |
18Aug2021 |
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*) |
| Grand Total | 8.09 | (Rupees Eight Crores and Nine lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@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.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | Bank of Baroda | Term LoanSanctioned | 0.09 | _ | 0.09 | Simple## |
| 2 | Bank of Baroda | Cash CreditSanctioned | 8.00 | _ | 8.00 | Simple## |
| Total | 8.09 | 0.00 | 8.09 | |||
| TOTAL (Rupees Eight Crores and Nine lakhs 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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