RATING RATIONALE
26Jul2023

Bikaji Foods International Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs.122.60 Crs. of Bikaji Foods International Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 May 2022)
Present
Fund Based 117.60 117.60 Long Term BWR AA- /Stable
Reaffirmation
BWR A + /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 5.00 5.00 Short Term BWR A1+
Reaffirmation
BWR A1
ISSUER NOT COOPERATING* /Downgrade
Grand Total 122.60 122.60 (Rupees One Hundred Twenty Two Crores and Sixty 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), vide its rationale dated 16 May, 2022, had reaffirmed the long-short term ratings for the Bank Loan Facilities of Rs.122.60Crs to BWR AA-/Stable and BWR A1+ of Bikaji Foods International Ltd.

The ratings were due for an annual review in May, 2023. BWR took up with the issuer to provide required information over emails dated 24 May 2023, 31 May 2023, 7 June 2023, 8 June 2023, 14 June 2023, 6 July 2023, 20 July 2023 and through multiple telephone calls. Despite repeated reminders by BWR to get the minimum required information for annual review, the entity has not provided the same and remained non-cooperative in this regard. Due to lack of management cooperation, non submission of NDS as per extant guidelines and absence of adequate information for review of ratings, 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 and in line with SEBI guidelines, BWR has downgraded and migrated the ratings to the 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 and non-cooperation by the issuer 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 ENTITY

Bikaji Foods International Ltd (previously Shivdeep Industries Limited) was founded in 1986 as a partnership concern and was converted to a limited company in October 1995. The erstwhile firm used to sell its product under the name of Haldiram, and from 1993 onwards, the company established the BIKAJI brand for its products. The company is engaged in the manufacturing and processing of bhujia, papad, namkeens, cookies, snacks and sweets, among other products. It also exports to more than 35 countries and contributes approximately 5% of sales. The company has ISO: 9001:2015 and ISO 22000:2005 certified manufacturing facilities in Bichhwal, Bikaner.

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 Available

ANY OTHER INFORMATION

Not Available

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 117.60
BWR A+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
16May2022
BWR AA- Stable
(Reaffirmation)
12Feb2021
BWR AA- Stable
(Reaffirmation)
NA
NA
Non Fund Based ST 5.00
BWR A1
(ISSUER NOT COOPERATING* /Downgrade)
16May2022
BWR A1+
(Reaffirmation)
12Feb2021
BWR A1+
(Reaffirmation)
NA
NA
Grand Total 122.60 (Rupees One Hundred Twenty Two Crores and Sixty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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

Akanksha

Senior Rating Analyst akanksha@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Bikaji Foods International 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 HDFC Bank Term LoanSanctioned 25.00 _ 25.00
2 HDFC Bank Cash CreditSanctioned 15.00 _ 15.00
3 State Bank Of India (SBI) BG/ILCSanctioned _ 5.00 5.00
4 State Bank Of India (SBI) Cash CreditSanctioned 50.00 _ 50.00
5 State Bank Of India (SBI) Term LoanOut-standing 27.60 _ 27.60
Total 117.60 5.00 122.60
TOTAL (Rupees One Hundred Twenty Two Crores and Sixty 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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