Brickwork Ratings reaffirms the long term ratings for the Bank Loan Facilities of Rs. 5.27 Crs. of K N Goyal Ice & Cold Storage (P) Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (12 Apr 2022) |
Present | ||
Fund Based | 5.27 | 5.27 | Long Term |
BWR C
ISSUER NOT COOPERATING* /Reaffirmation |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 5.27 | 5.27 | (Rupees Five Crores and Twenty Seven lakhs Only) |
BWR has reaffirmed the long term rating to BWR C (Issuer Not Cooperating) based on best available information as the issuer did not cooperate. The rating is due for a review in April 2023. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the concern’s financial performance. Besides, No Default Statement has not been submitted by the client every month, despite follow-up.
Thus, BWR has reaffirmed the long term rating to BWR C and continue the ratings under “Issuer not Cooperating” category.
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, non-cooperation 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 ratings 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 ENTITYM/s K N Goyal Ice and Cold Storage (P) Ltd. is a private limited company established in 2001 and is currently engaged in the business of running Cold storage facilities in Agra. As per the information available, Mr. Onkar Nath Goyal, Umesh Chand Goyal, Nitesh Goyal and Anuj Goyal are the directors of the company. Key promoter Mr. Onkar Nath Goyal aged 73 years is a commerce graduate and has long experience in the industry. Major business activities of the company are: (i) Providing cold storage services for storing of potatoes brought by nearby producers, and (ii) giving loans to small and marginal farmers. All the users of cold storage services are farmers of potatoes from nearby areas within 50 Kms range.
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
Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 5.27 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
12Apr2022 |
BWR C
(ISSUER NOT COOPERATING* /Reaffirmation) |
21May2021 |
BWR C
(Reaffirmation/ISSUER NOT COOPERATING*) |
20Mar2020 |
BWR C
(Downgrade/Issuer Not Cooperating) |
Grand Total | 5.27 | (Rupees Five Crores and Twenty Seven 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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Kartik Arora Rating Analyst kartik.a@brickworkratings.com |
Hari Kishan Yadav Associate Director - Ratings hari.ky@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.) | |
---|---|---|---|---|---|---|
1 | Canara Bank | Term Loan | 0.27 | _ | 0.27 | |
2 | Canara Bank | Overdraft | 5.00 | _ | 5.00 | |
Total | 5.27 | 0.00 | 5.27 | |||
TOTAL (Rupees Five Crores and Twenty Seven lakhs Only) |
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About Brickwork RatingsBrickwork 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 12,000 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. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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