Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 33.67 Crs. of Megastar Foods Ltd.
Particulars
Facilities**
Amount (Rs.Crs.)
Tenure
Rating#
Previous
Present
Previous (08 Jan 2024)
Present
Fund Based
33.67
33.67
Long Term
BWR BB- /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR BB -
/Stable
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
Grand Total
33.67
33.67
(Rupees Thirty Three Crores and Sixty 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
The most recent rating review, conducted in January 2024, resulted in a downgrade of the long-term rating to BWR BB- with a Stable outlook for the bank loan facilities totaling Rs. 33.67 crore. The rating continues to be in the ISSUER NOT COOPERATING* category.
Brickwork Ratings (BWR) has followed up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. However, despite repeated requests by BWR, the company’s management has not submitted all the essential details required for the detailed review of the outstanding ratings. Availability of information is very critical in rating exercises. In the absence of the requisite information, in consonance with SEBI guidelines, BWR has reviewed the rating and continues under the ISSUER NOT COOPERATING* category, based on the best available information. Further, the company has not been submitting the monthly ‘No Default Statement’ (NDS) in deviation from the extant guidelines.
Megastar Foods Ltd. (MFL) has requested the withdrawal of its rating, providing a No Objection Certificate (NOC) from its lender via email, which confirms approval for the rating withdrawal. As a result, the BWR team has reaffirmed the long-term rating at BWR BB- with a Stable outlook, while continuing the "Issuer Not Cooperating" status. Consequently, the bank loan ratings have been withdrawn.
ABOUT THE ENTITY
Macro Economic Indicator
Sector
Industry
Basic Industry
Fast Moving Consumer Goods
Fast Moving Consumer Goods
Food Products
Other Food Products
Megastar Foods Limited (‘The company’ or ‘MFL’) was incorporated in 2011. The company’s main line of business is milling wheat to produce wheat flour, suji/rava, and wheat bran. MFL’s plant is located at Chandigarh with a warehousing capacity of 15000 MT and a manufacturing capacity of 9000 MT per month. Mr. Vikas Goel and Mr. Vikas Gupta mainly promote MPL. The company was listed on the Bombay Stock Exchange in FY19.
(As per Information available with BWR as of 02-Sep-2021)
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATION
Not Applicable.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities
Current Rating (2024)
2024 (History)
2023
2022
2021
Type
Tenure
Amount (Rs.Crs.)
Rating
Date
Rating
Date
Rating
Date
Rating
Date
Rating
Fund Based
LT
33.67
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)
08Jan2024
BWR BB- Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
02Nov2022
BWR BB Stable
(ISSUER NOT COOPERATING* /Downgrade)
02Sep2021
BWR BBB- Stable
(Reaffirmation)
Grand Total
33.67
(Rupees Thirty Three Crores and Sixty Seven lakhs Only)
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About Brickwork Ratings
Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
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