RATING RATIONALE
14Jul2022

Gopaljee Dairy Foods Pvt. Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 283.07 Crs. of Gopaljee Dairy Foods Pvt. Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(14 Jan 2022)
Present
Fund Based 278.57 278.57 Long Term BWR BBB-/Stable
Downgrade/ISSUER NOT COOPERATING*
BWR BB /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 4.50 4.50 Short Term BWR A3
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Downgrade/ISSUER NOT COOPERATING*
Grand Total 283.07 283.07 (Rupees Two Hundred Eighty Three Crores and Seven 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

Brickwork Ratings (BWR), has downgraded the ratings assigned to the bank facilities of  Gopaljee Dairy Foods Pvt. Ltd  ('GDFL' or 'the company') under the ‘Issuer Non Co-operating’ category as the company has failed to provide the requisite information for monitoring of the rating for the rating review. The downgrade is in line with the SEBI guidelines requiring if an issuer with investment grade rating remains under non-cooperation category for more than six months, the rating should be revised to non-investment grade category. GDFPL continues to be non-cooperative for more than 6 months (since the last review) despite repeated requests for submission of information through emails and telephonic calls.  Thus, in the absence of adequate information from the company, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. In line with the extant SEBI guidelines, BWR has reviewed the ratings on the basis of the best available information which however, in BWR’s opinion is not sufficient to arrive at a fair 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 required information for a review of the assigned rating may also be accompanied by financial stress.

ABOUT THE ENTITY

Gopaljee Dairy Foods Pvt Ltd (GDFPL) was incorporated in 2003, and is based in Delhi NCR. GDFPL is engaged in the manufacturing of processed milk and milk products like ghee, skimmed milk powder, dahi, lassi/chhachh, paneer, flavored milk etc. The company sells products under the brand name of “Gopaljee” and “Ananda” .It’s processing units are located in: 1) Siyana unit, UP, having installed capacity of 3.22 LLPD, 2) Pilukhwa Unit (UP) having installed capacity of 4.80 LLPD, 3) Kanpur unit (leased) having capacity of 1.12 LLPD and 4) Moradabad unit (third-party manufacturer) having capacity of 3.00 LLPD.

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

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 278.57
BWR BB/Stable
(Downgrade/ISSUER NOT COOPERATING*)
14Jan2022
BWR BBB-Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
15Oct2020
BWR BBB+ Stable
(Reaffirmation and change in Outlook)
18Mar2019
BWR BBB+Stable
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
NA
NA
11Sep2019
BWR BBB+Stable to Negative
(Reaffirmation and change in Outlook)
Non Fund Based ST 4.50
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
14Jan2022
BWR A3
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
15Oct2020
BWR A2+
(Reaffirmation)
18Mar2019
BWR A2+
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
NA
NA
11Sep2019
BWR A2+
(Reaffirmation)
Grand Total 283.07 (Rupees Two Hundred Eighty Three Crores and Seven lakhs Only)
Rating Advisory, as on 18Oct2021
Press Release, as on 18Oct2021
Advisory for delay in rating review.

COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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.

Analytical Contacts

Neha Jain

Senior Rating Analyst Board : +91 11 2341 2232 neha.j@brickworkratings.com

Sudeep Sanwal

Associate Director - Ratings sudeep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Gopaljee Dairy Foods Pvt. 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 Axis Bank Ltd. Cash CreditSanctioned 4.00 _ 4.00
2 Bandhan Bank Cash CreditSanctioned 26.00 _ 26.00
3 Bandhan Bank Term LoanSanctioned 8.14 _ 8.14
4 IndusInd Bank Term LoanSanctioned 10.93 _ 10.93
5 IndusInd Bank Cash CreditSanctioned 15.00 _ 15.00
6 IndusInd Bank Warehouse Receipts (WHR)Sanctioned 5.00 _ 5.00
7 State Bank Of India (SBI) CECLSanctioned 11.00 _ 11.00
8 State Bank Of India (SBI) Cash CreditSanctioned 10.00 _ 10.00
9 State Bank Of India (SBI) Stand by Line of CreditSanctioned 8.25 _ 8.25
10 State Bank Of India (SBI) Warehouse Receipts (WHR)Sanctioned 55.00 _ 55.00
11 State Bank Of India (SBI) Term LoanSanctioned 9.85 _ 9.85
12 State Bank Of India (SBI) Cash CreditSanctioned 60.00 _ 60.00
13 State Bank Of India (SBI) Term LoanSanctioned 21.87 _ 21.87
14 UCO Bank Cash CreditSanctioned 20.00 _ 20.00
15 UCO Bank CECLSanctioned 2.00 _ 2.00
16 Yes Bank Letter of CreditSanctioned _ 4.50 4.50
17 Yes Bank Term LoanSanctioned 11.53 _ 11.53
Total 278.57 4.50 283.07
TOTAL (Rupees Two Hundred Eighty Three Crores and Seven lakhs Only)
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