RATING RATIONALE
04Jul2022

OVO Farm Pvt. Ltd.

Brickwork Ratings downgrades the long term ratings for the Bank Loan Facilities of Rs. 20.16 Crs. of OVO Farm Pvt. Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Apr 2021)
Present
Fund Based 20.16 20.16 Long Term BWR BBB- /Stable
Reaffirmation
BWR BB /Stable
Downgrade/ISSUER NOT COOPERATING*
Grand Total 20.16 20.16 (Rupees Twenty Crores and Sixteen 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 due for review in April 2022. Brickwork ratings(BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer's financial performance and its ability to service its debt and maintain valid ratings. The company has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation , Brickwork Ratings has downgraded the long-term rating to 'BWR BB/Stable' from 'BWR BBB-/Stable' and migrated the ratings under the Issuer Not Cooperating* category.

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 rating 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

Ovo Farm Private Limited (OFL) was incorporated in the year 2001 by Mr. Samarendra Mishra. The Company has its farming unit at NH-26 Chhatamakhna, Bolangir Odisha and has its registered office at Club Paraat, Bolangir. The Company is into layer category of poultry business. The Company initially started with conventional poultry business and later moved to Environmentally Controlled(E.C.) houses. The Company has 14 E.C house. Further, the Company has its own feed manufacturing plant and for the easy accessibility to the merchants, it has set up two depots in Bolangir and Sonepur Cities of Odisha. The Company is expanded to 10 Lakhs birds storing capacity and a new egg grading machine.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 61.51 56.42
EBITDA Rs.Crs. 7.40 7.28
PAT Rs.Crs. 2.52 3.58
Tangible Net Worth Rs.Crs. 25.90 21.24
Total Debt/TNW Times 0.77 0.52
Current Ratio Times 1.14 0.96
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 20.16
BWR BB/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
01Apr2021
BWR BBB- Stable
(Reaffirmation)
NA
NA
18Oct2019
BWR BBB- Stable
(Reaffirmation)
0.00
NA
NA
NA
15Mar2021
BWR BBB- Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
18Oct2019
BWR BBB- Stable
(Reaffirmation)
Non Fund Based ST 0.00
NA
NA
NA
NA
NA
NA
NA
18Oct2019
BWR A3
(Withdrawal)
Grand Total 20.16 (Rupees Twenty Crores and Sixteen 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

Deepthi Nair V.

Ratings Analyst deepthinair.v@brickworkratings.com

Ramesh N

Associate Director - Ratings ramesh.n@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
OVO Farm 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 Union Bank of India Term LoanOut-standing 2.46 _ 2.46
2 Union Bank of India Term LoanOut-standing 1.64 _ 1.64
3 Union Bank of India Term LoanOut-standing 6.11 _ 6.11
4 Union Bank of India Term LoanOut-standing 0.01 _ 0.01
5 Union Bank of India Working Capital Term LoanOut-standing 2.44 _ 2.44
6 Union Bank of India Cash CreditSanctioned 7.50 _ 7.50
Total 20.16 0.00 20.16
TOTAL (Rupees Twenty Crores and Sixteen lakhs Only)
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