RATING RATIONALE
07Nov2024

Natraj Proteins Ltd.

Brickwork Ratings downgrades the long-term ratings for the Bank Loan Facilities of Rs. 45.00 Crs. and reaffirms short-term ratings Rs. 0.50 Crs. of Natraj Proteins Ltd. based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Aug 2023)
Present
Fund Based 45.00 45.00 Long Term BWR B+/Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR B - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 0.50 0.50 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
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

The annual surveillance was due for review on 15th Aug 24 and in context to the same BWR followed up with the company via emails dated 28th Oct 24, 29th Oct 24, 4th Nov 24 and 5th Nov 24 for providing the required information for review of the ratings. Despite the same, no information was received by us and hence in the absence of the same (viz. Future projections, liquidity & facility utilization levels, bank statements, and other business updates), BWR is unable to assess the issuer’s financial/ business performance and its ability to service the debt obligations. BWR has regularly been seeking a No default statement (NDS) from the Company, but the same has not been shared with us till date.

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 assessing 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 withholding 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 Agricultural Food & other Products Edible Oil

Natraj Proteins Ltd. (hereinafter referred to as ‘NPL’ or ‘the Company) was incorporated as a Public Ltd. Co. in 1994, was promoted by Mr. Kailash  Sharma, Mr. J P Agarwal and Mr. Sharad Kumar Jain. It 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 is at Itarsi (MP). 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.

It 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.

Information as on 24 June 2019.
 

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

Not Applicable

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 45.00
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
16Aug2023
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)
Non Fund Based ST 0.50
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
16Aug2023
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)
Grand Total 45.50 (Rupees Forty Five Crores and Fifty lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Rohan Ganesh Gadkari

Ratings Analyst rohan.g@brickworkratings.com

Niraj Kumar Rathi

Director Ratings niraj.r@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.) Complexity of the Instrument
1 Bank of Baroda Cash CreditSanctioned 25.00 _ 25.00 Simple##
2 Bank of Baroda Bank GuaranteeSanctioned _ 0.50 0.50 Simple##
3 Bank of Baroda Cash Credit (WHR)Sanctioned 20.00 _ 20.00 Simple##
Total 45.00 0.50 45.50
TOTAL (Rupees Forty Five Crores and Fifty 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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