RATING RATIONALE
15Mar2022

J.R. Foods Limited

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 36.33 Crs. of J.R. Foods Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(26 Jul 2021)
Present
Fund Based 9.83 9.83 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Non Fund Based 26.50 26.50 Short Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 36.33 36.33 (Rupees Thirty Six Crores and Thirty Three 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 rating was reaffirmed at BWR D and continued the ratings in the ISSUER NOT COOPERATING* category on 26 July 2021, taking into account the lack of cooperation from the management for the receipt of minimum information required for conducting a review.

Now, BWR notes that NCLT, Chennai has ordered the commencement of the Corporate Insolvency Resolution Process (CIRP) of the company on 11-February-2022 as initiated by the lender and Mr Ramana Kumar has been appointed as the Insolvency Professional. Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for a rating review. Despite the best efforts of BWR to get at least the minimum required information for a review, the company continues to be non-cooperative. Also, the Company has not been submitting ‘No Default Statement’ (NDS) as per extant regulations. Due to the continued lack of management cooperation and 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. Hence, based on best available information, continued lack of management cooperation, non-submission of NDS, initiation of the CIRP proceedings under NCLT and in terms of extant regulatory requirements, BWR has reaffirmed the ratings at BWR D and continued in the ISSUER NOT COOPERATING* category.

*Issuer did not cooperate; based on best available information.

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. 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 information required for a review of the rating.

ABOUT THE ENTITY

JRFL is a listed Company on BSE, incorporated in 1993 with its registered office in Pondicherry. The Company is engaged in manufacturing of solvent extracted oils and refined vegetable oils. The company’s manufacturing facility is located on the Villupuram-Pondicherry National Highway in Tamil Nadu. The refinery capacity is 300 MTPD and the solvent extraction capacity is 400 TPD.

Note: As per information available with BWR in Feb 2015 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 1.47 1.01
EBITDA Rs.Crs. 0.68 0.29
PAT Rs.Crs. -8.49 -8.04
Tangible Net Worth Rs.Crs. -50.61 -42.13
Total Debt/Tangible Net Worth Times -1.20 -1.39
Current Ratio Times 0.22 0.26
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

ICRA has migrated its ratings of the bank loan facilities of the company in the Issuer Not Cooperating* category w.e.f. 17 Jun 2019, due to non cooperation of the company in the surveillance exercise.

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 9.83
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
26Jul2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
29Jul2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
11Jun2019
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 26.50
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
26Jul2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
29Jul2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
11Jun2019
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 36.33 (Rupees Thirty Six Crores and Thirty Three lakhs Only)
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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Vineetha Ann Varughese

Senior Ratings Analyst vineetha.v@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
J.R. Foods Limited
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 Bank of Baroda Term LoanSanctioned 1.83 _ 1.83
2 Bank of Baroda Cash CreditSanctioned 8.00 _ 8.00
3 Bank of Baroda Bank GuaranteeSanctioned _ 1.50 1.50
4 Bank of Baroda Foreign Letter of Credit (FLC)Sanctioned _ 25.00 25.00
Total 9.83 26.50 36.33
TOTAL (Rupees Thirty Six Crores and Thirty Three lakhs Only)
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