RATING RATIONALE
11Jun2024

Ambootia Tea Exports Pvt. Ltd.

Brickwork Ratings reaffirms the ratings of the long-term and short term bank loan facilities of Ambootia Tea Exports Pvt. Ltd for Rs. 216.45 Crs, and continues the ratings in the ISSUER NOT COOPERATING category based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(13 Mar 2023)
Present
Fund Based 215.95 215.95 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 0.50 0.50 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 216.45 216.45 (Rupees Two Hundred Sixteen Crores and Forty Five 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 has reaffirmed the rating for the long term Bank Loan facilities of Rs. 215.95 Crs of  Ambootia Tea Exports Pvt Ltd and the rating for their short term Bank Loan Facilities of Rs. 0.50 Crs. (aggregate rated amount Rs. 216.45 Crs) at BWR D. and has retained the ratings in the “Issuer Not Cooperating" category based on best available information, as the issuer did not cooperate.

The Initial Rating of Ambootia Tea Exports Pvt Ltd Bank Loan Facilities of Rs.90.50 Crores was done on 12 July 2016 and ratings of BWR BBBwith Stable outlook and BWR A3 were assigned. The ratings of the enhanced amount of Rs. 210.50 Crores were reaffirmed on 17 August 2017. The rated amount was increased to Rs. 216.45 Crores and further upgraded to BWR BBB(Stable)/ A3+ on 17 August 2018. Subsequently, due to lack of cooperation from the issuer despite continued follow up to enable us to carry out a review and based on Banker’s feedback on the entity, the ratings were downgraded to BWR BB(Negative)/ BWR A4 and moved to “Issuer Not Cooperating” category on 18 January 2020, Subsequently, due to lack of cooperation from the issuer despite continued follow up to enable us to carry out a review and based on feedback from one of its lenders stating that the account had become a Non Performing Asset in their books, the ratings were downgraded to BWR D and moved to “Issuer Not Cooperating” category on 17 August 2020.

On following up with the Issuer and their bankers recently over emails and telephone calls to obtain the required information, no response was received from the client and their bankers. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the firm nor their banker has provided the same. The company has also not been submitting the monthly NDS for a long period of time. Due to the continued lack of management cooperation and in the absence of adequate information from the company and their banker, as well as non submission of NDS, BWR is unable to assess the Issuer's financial performance or its ability to service its debt and maintain a valid rating. Hence Brickwork Ratings has reaffirmed the long term rating and the short term rating at BWR D and retained them in the ISSUER NOT COOPERATING* category, based on best available information as the issuer did not cooperate.

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.

Analytical Approach- Standalone.

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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Fast Moving Consumer Goods Fast Moving Consumer Goods Agricultural Food & other Products Tea & Coffee

Ambootia Tea Exports Pvt Ltd was incorporated as a private Limited in 2009 by Mr Sanjay P Bansal and Ms Reena Bansal. The registered office is located in Kolkata, West Bengal. It is into trading of tea (majorly Orthodox organic tea) and Non Tea export (Turmeric, Ginger Etc., grown in the estates of group Company). ATEPL has 12 warehouses (10 in Kolkata and 2 in Coimbatore) with area of ₹ 2,67,700 Sq.ft. In FY18, 100% of revenue is from export (USA, Japan, Germany, Netherlands, Italy, Iraq, Iran, Russia, France etc).

(Information avaiable as per Aug 2018 review)

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No INC ratings with other CRAs

ANY OTHER INFORMATION

NIL

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 215.95
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
13Mar2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
26Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Non Fund Based ST 0.50
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
13Mar2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
26Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 216.45 (Rupees Two Hundred Sixteen Crores and Forty Five 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

Prajwal Biraj

Rating Analyst prajwal.b@brickworkratings.com

Nagaraj K

Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Ambootia Tea Exports 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 Bank of Baroda EPC/ PCFC/ FBP/ PSFCSanctioned 17.50 _ 17.50
2 Punjab and Sind Bank EPC/ PCFC/ FBP/ PSFCSanctioned 125.00 _ 125.00
3 Punjab National Bank ILC/IBGSanctioned _ 0.50 0.50
4 State Bank Of India (SBI) Term LoanSanctioned 9.95 _ 9.95
5 State Bank Of India (SBI) EPC/ PCFC/ FBP/ PSFCSanctioned 21.00 _ 21.00
6 Union Bank of India EPC/ PCFC/ FBP/ PSFCSanctioned 20.00 _ 20.00
7 Union Bank of India EPC/ PCFC/ FBP/ PSFCSanctioned 22.50 _ 22.50
Total 215.95 0.50 216.45
TOTAL (Rupees Two Hundred Sixteen Crores and Forty Five 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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