RATING RATIONALE

02Mar2026

Tirupati Rice Mill

Brickwork Ratings assigns the ratings of BWR B+/Stable and a short-term rating of BWR A4 for the Bank Loan Facilities of Rs. 29.02 Crs. of Tirupati Rice Mill

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	13.52	Long Term	BWR B + /Stable Assignment
Non Fund Based	15.50	Short Term	BWR A4 Assignment
Non Fund Based	(4.50)	Short Term	BWR A4 Assignment
Grand Total	29.02	(Rupees Twenty Nine Crores and Two 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 RATING ACTION / OUTLOOK

BWR has assigned a long-term rating of BWR B+/Stable and a short-term rating of BWR A4 for the bank loan facilities of Rs. 29.02 Crs of Tirupati Rice Mill.

The rating is based on an assessment of the FY24 & FY25 audited financial statements and the latest business figures as provided by the company.

The rating factors in the experience of the promoters, the moderate financial risk profile, and the operational advantages arising from the company’s strategic location in a rice-growing belt. The rating also notes the stretched liquidity profile. However, it remains constrained by the highly competitive nature of the industry, the constitution of the entity as a partnership firm, and its exposure to agro-climatic risks and seasonal variations.

The ‘Stable’ outlook reflects BWR’s expectation that the business and financial risk profile of Tirupati Rice Mill will remain consistent over the medium term. The outlook may be revised to Positive if sustained improvement in the scale of operations and profitability leads to a stronger financial risk profile with improved gearing and debt protection metrics. Conversely, the outlook may be revised to Negative if revenue or profitability falls short of expectations, or if weakened gearing adversely impacts the overall financial risk profile

KEY RATING DRIVERS

Credit Strengths:

Operational Advantage from Strategic Location in Rice growing Belt :
The firm’s rice mill unit is strategically located in Raipur (Chhattisgarh), one of the largest rice-producing states in India, providing easy access to abundant raw material supplies and supporting operational efficiency.
Moderate Financial risk profile :
The firm achieved a total operating income of Rs.1.80 Cr in FY25, reflecting a strong growth from Rs.0.59 Cr in FY24. Despite fluctuations in TOI, the profitability remained steady, with PAT at Rs.0.03 Cr in FY24 and Rs.0.05 Cr in FY25, where the firm has managed to sustain profits. Tangible Net Worth (TNW) improved from Rs.2.37 Cr in FY24 to Rs.3.17 Cr in FY25, on account of retained earnings.
Experienced partners :
The partners have experience in paddy processing and trading, which has helped the firm to understand local market dynamics and establish relationships with customers and suppliers.
Favourable demand prospects of the industry :
The demand prospects of rice are expected to remain Stable, as rice and rice-based products form an essential ingredient of Indian diet.

Credit Risks:

Competitive Industry :
Entry barriers in the rice milling industry are low on account of limited capital & technology requirements and low differentiation in the end product. This leads to intense competition and limits players’ pricing power, resulting in lower profitability.
Constitution of the partnership firm :
Given the partnership nature of the firm, any capital withdrawals by partners could impact liquidity, weaken debt coverage ratios, and increase reliance on external borrowings. This may also affect working capital, limit expansion plans, and constrain business growth. To mitigate these risks, the firm should consider implementing capital retention policies and maintaining adequate reserves.
Exposure to agro climatic factors and seasonal changes :
The price of paddy (key raw material) is highly volatile as it is dependent on demand-supply scenario, monsoon, and crop cycles. Also, since the cost of procuring paddy accounts for the bulk of the production expense, even a slight variation in price can drastically impact profitability.

ANALYTICAL APPROACH - Standalone

Standalone - For arriving at its ratings, BWR has considered the standalone performance of Tirupati Ricemill. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the ability of the firm to improve the scale of operations and profitability, maintain a strong liquidity position, effectively manage working capital, and strengthen the overall credit profile would be the key rating sensitivities.

Positive:

A significant improvement in the scale of operations (revenues above Rs.20 Cr.), operating margins of over 4.7% and net margin of over 0.5% on a sustained basis.
Improvement in Total Debt/TNW below 2.0x on a sustained basis.

Negative:

Decline in the scale of operations (revenues below Rs. 12 Cr.).
Decline in the current ratio below 1.30x may exert downward pressure on the ratings

LIQUIDITY INDICATORS - Stretched

The firm’s liquidity profile remains stretched, as reflected by modest cash flow indicators. The Net Cash Accruals stood at Rs.0.45 crore in FY25 against repayment obligations (CPLTD) projected at Rs.0.36 crore in FY26. The current ratio remained modest at 8.92x in FY25, indicating a sufficient short-term liquidity cushion. The firm’s average working capital limit utilisation stood at 24.78% over the past 13 months, providing some liquidity buffer. Additionally, the firm maintained a cash and bank balance of Rs.0.36 crore as on March 31, 2025.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Fast Moving Consumer Goods	Fast Moving Consumer Goods	Agricultural Food & other Products	Other Agricultural Products

M/s Tirupati Rice Mill is an established partnership firm engaged in rice milling, located at Village Borid, Tehsil Rajim, District Gariyaband, Chhattisgarh. The firm is promoted and managed by Mrs. Usha Pareek and Mr. Ramniwas Kisanlal Pareek, both experienced entrepreneurs from a reputed business family. The unit operates a modern rice mill with a total capacity of 12 MTPH (6 MTPH Raw rice and 6 MTPH Parboiled rice). Its product range includes Raw Rice, Parboiled Rice, Rice Bran, and Broken Rice. The plant is equipped with modern processing and sortex technology, enabling the production of superior quality rice that commands a premium in the market.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	Not Available	0.59	1.80
EBITDA	Rs.Crs.	Not Available	0.19	0.58
PAT	Rs.Crs.	Not Available	0.01	0.05
Tangible Net Worth	Rs.Crs.	Not Available	2.37	3.17
Total Debt / Tangible Net Worth	Times	Not Available	0.96	0.93
Current Ratio	Times	Not Available	1.40	8.92

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	13.52	BWR B+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	15.50	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(4.50)	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		29.02	(Rupees Twenty Nine Crores and Two lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Shikha Kumari Gupta Ratings Analyst shikha.gupta@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Tirupati Rice Mill

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.)	Complexity of the Instrument
1	Punjab National Bank	Term Loan - Out-standing	0.86	_	0.86	Simple##
2	Punjab National Bank	Term Loan - Out-standing	3.16	_	3.16	Simple##
3	Punjab National Bank	Cash Credit - Sanctioned	9.50	_	9.50	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned		(4.50)
4	Punjab National Bank	Bank Guarantee - Sanctioned	_	15.50	15.50	Simple##
Total			13.52	15.50	29.02
TOTAL (Rupees Twenty Nine Crores and Two lakhs Only)

## 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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