RATING RATIONALE
04Jul2022

Prymari Agriculture Co-Op Rative Society Limited - Mustoor

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 9.46 Crs. of Prymari Agriculture Co-Op Rative Society Limited - Mustoor based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(25 Sep 2020)
Present
Fund Based 9.46 9.46 Long Term BWR B /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Downgrade/ISSUER NOT COOPERATING*
Grand Total 9.46 9.46 (Rupees Nine Crores and Forty Six 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

In view of the non-availability of information and lack of cooperation from Prymari Agriculture Co-Op Rative Society Limited - Mustoor, Brickwork Ratings has downgraded the rating of their long term bank loan facilities of Rs. 9.46 Crs. at ‘BWR B- /Stable’  along with continuation of the ratings in the  “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

The rating was due for a review in Sep 2021. BWR took up with the issuer to provide the required information over emails and also over phone calls but the client did not respond. Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not provided the same. The company has failed to submit their NDS (No Default Statements). 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.

The lenders/investors may note to exercise due caution while using the above rating which mentions  "ISSUER NOT COOPERATING"  since the rating lacks any projections or forward looking component as it is arrived 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, 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 the information required for a review of the rating.

ABOUT THE ENTITY

Prymari Agriculture Co-Op Rative Society Limited, Mustoor, Karnataka is a credit co-operative society registered under Karnataka Co – operative Societies’ Act 1959. The society was incorporated on January 06, 1976 with the objective of providing timely and affordable credit and other services to its members (farmers) like input facilities in the form of cash or kind component. The society is also engaged in the supply of fertilizers to the members at a subsidized rate. The society buys fertilizers from KRIBHCO, IFFCO etc and distributes it to the farmers with nominal margin of one to two per cent. The society consists of 2031 members as on March 31, 2017. Out of 2031 members, loans have been granted to 1056 members of the society. The society provides maximum loan upto Rs 3 Lakhs to its farmers. The society issues interest free agricultural loan to its members and it receives 6.90% interest from the State Government and 3% from the Central Government

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NIL

ANY OTHER INFORMATION

NA

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 9.46
BWR B-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
25Sep2020
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
07Jun2019
BWR B+ Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 9.46 (Rupees Nine Crores and Forty Six 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

Md Saif Ali Khan

Ratings Analyst saifali.k@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Prymari Agriculture Co-Op Rative Society Limited - Mustoor
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 State Bank Of India (SBI) Crop LoanSanctioned 9.46 _ 9.46
Total 9.46 0.00 9.46
TOTAL (Rupees Nine Crores and Forty Six lakhs Only)
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