RATING RATIONALE
29Nov2022

Foods And Inns Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 172.30 Crs. of Foods And Inns Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#@
Previous Present Previous
(26 Aug 2021)
Present
Fund Based 139.80 139.80 Long Term BWR BBB /Stable
Reaffirmation
BWR BBB /Stable
ISSUER NOT COOPERATING* /Reaffirmation
Non Fund Based 32.50 32.50 Short Term BWR A3
Reaffirmation
BWR A3
ISSUER NOT COOPERATING* /Reaffirmation
Grand Total 172.30 172.30 (Rupees One Hundred Seventy Two Crores and Thirty 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.
@This rating pertains to an existing assignment received prior to 6 October 2022


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The ratings for the bank loan facilities of Foods and Inns Ltd had fallen due on 26 Aug 2022 and BWR had issued an advisory in the form of a press release due to a delay in the rating review. Brickwork Ratings (BWR) has consistently taken up with the company to provide financial and operational information for the periodic monitoring and surveillance of the ratings. Despite the best efforts of BWR to get the required information for a review, the company has not provided the complete information. Due to the continued lack of management cooperation and in the absence of adequate information from the company, BWR is unable to assess its financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, management's non-cooperation and in line with extant guidelines, Brickwork Ratings has reaffirmed the rating as BBB/Stable/A3, while migrating the ratings to the ISSUER NOT COOPERATING* category.

 

* Issuer did not cooperate; based on best available information

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 the 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 information required for a review of the rating.

ABOUT THE ENTITY

Foods and Inns Ltd ('FIL' or 'the company), incorporated in 1967, is a Mumbai-based company engaged in the processing of fruit pulp, and natural spray-dried fruit/vegetable powder. The company is one leading names in the fruit pulp industry with three manufacturing facilities at Chittoor (Andhra Pradesh), Valsad (Gujarat) and two facilities in Nashik (Maharashtra). The company is also engaged in the business of Vegetable pulp, purees, Spices, Spray dry powders, Frozen foods and other value-additives. The company is one of the largest exporters of Mango pulp in the country and is a government-recognized export house. The company is majorly engaged in exports to Europe, the Middle East, USA and Japan. The products are sold in aseptic, canned, frozen and spray-dried forms. The Company is listed on the BSE since 1978. The company is listed in NSE since 16 Nov 2021. 

Mr. Bhupendra Dalal the non-executive non-independent director and Chairperson. Mr. Raymond Simkins, Mr. Milan Dalal and Mrs. Pallavi Dhupelia are the non-executive non independent directors.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 619.25 358.53
EBITDA Rs.Crs. 52.56 23.51
PAT Rs.Crs. 16.02 3.89
Tangible Net Worth Rs.Crs. 184.51 169.47
Total Debt/TNW Times 1.15 0.96
Current Ratio Times 1.11 1.14
KEY FINANCIAL INDICATORS (Consolidated)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 634.99 372.75
EBITDA Rs.Crs. 54.69 25.66
PAT Rs.Crs. 15.29 3.93
Tangible Net Worth Rs.Crs. 183.65 169.32
Total Debt/TNW Times 1.17 0.96
Current Ratio Times 1.11 1.15
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

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 139.80
BWR BBB/Stable
(ISSUER NOT COOPERATING* /Reaffirmation)
NA
NA
26Aug2021
BWR BBB Stable
(Reaffirmation)
14Apr2020
BWR BBBStable
(Assigned)
NA
NA
0.00
NA
NA
NA
NA
NA
27Apr2020
BWR BBBStable
(Reaffirmation)
NA
NA
Non Fund Based ST 32.50
BWR A3
(ISSUER NOT COOPERATING* /Reaffirmation)
NA
NA
26Aug2021
BWR A3
(Reaffirmation)
14Apr2020
BWR A3
(Assigned)
NA
NA
0.00
NA
NA
NA
NA
NA
27Apr2020
BWR A3
(Reaffirmation)
NA
NA
Grand Total 172.30 (Rupees One Hundred Seventy Two Crores and Thirty lakhs Only)
Rating Advisory, as on 14Oct2022
Press Release, as on 14Oct2022
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

Vineet Krishnan Nair

Senior Ratings Analyst vineet.kn@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Foods And Inns 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 Export Import Bank of India Term LoanSanctioned 8.00 _ 8.00
2 Export Import Bank of India Term LoanSanctioned 5.80 _ 5.80
3 HDFC Bank Letter of CreditSanctioned _ 10.00 10.00
4 HDFC Bank Pre ShipmentSanctioned 30.00 _ 30.00
5 HDFC Bank Post ShipmentSanctioned 35.00 _ 35.00
6 State Bank Of India (SBI) Cash CreditSanctioned 23.50 _ 23.50
7 Union Bank of India Open Cash Credit / Cash Credit (Hypothecation/Pledge)Sanctioned 10.55 _ 10.55
8 Union Bank of India Bank GuaranteeSanctioned _ 1.00 1.00
9 Union Bank of India ILC/FLCSanctioned _ 21.50 21.50
10 Union Bank of India Pre ShipmentSanctioned 26.95 _ 26.95
Total 139.80 32.50 172.30
TOTAL (Rupees One Hundred Seventy Two Crores and Thirty lakhs Only)
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