RATING RATIONALE

11Feb2026

RIKA GLOBAL IMPEX LIMITED

Brickwork Ratings assigns the long-term and short-term ratings to BWR BBB/Stable and BWR A3 for the Bank Loan Facilities of Rs. 140.00 Crs. of RIKA GLOBAL IMPEX LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	40.00	Long Term	BWR BBB /Stable Assignment
Fund Based	100.00	Short Term	BWR A3 Assignment
Grand Total	140.00	(Rupees One Hundred Forty Crores 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

Brickwork Ratings has assigned the long-term and short-term ratings of BWR BBB/Stable and BWR A3 for the bank loan facilities of Rs. 140.00 Crores of Rika Global Impex Limited.

The ratings assigned to the bank facilities of Rika Global Impex Limited. continue to derive strength from its improving track record of operations and the extensive experience of the company, who have been managing the company for more than a decade. The rating also factors in the growing scale of operations and profitability, a healthy financial risk profile, and an adequate liquidity position. The assessment is based on the audited financial statements of FY 2023, FY 2024, and FY 2025.

The rating outlook has been assigned as "Stable" as BWR believes that Rika Global Impex Limited.. business risk profile will be maintained over the medium term. The 'Stable'' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Locational Advantage :
The company/Firm is located in Mumbai cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.
Longstanding presence of the promoters and established relationships with customers and suppliers: :
RGIL’s promoters have more than four decades of experience in the agricultural (agro) commodities trading business. This has enabled them to develop a strong understanding of market dynamics and expand geographically. Longstanding association with key suppliers and customers has helped the company to procure repeat orders, which has helped it to scale up its business. Extensive experience of the promoters and their established relationships with customers should continue to support the business risk profile over the medium term.

Credit Risks:

Competition in the Industry :
Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability
Exposure to intense competition and volatility in prices of traded goods and foreign exchange (forex) rates :
Prices of traded goods are volatile due to uneven monsoon and regulatory interventions. The highly fragmented nature of the trading business limits its ability to bargain with suppliers and customers.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has applied its rating methodology as detailed in the Rating criteria below(hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward the Entity’s ability to improve the scale of operations, improve and maintain profitability, the debt servicing capability & liquidity ,competition of e-commerce industry and manage its working capital efficiently will be the key rating sensitivities.

Positive :

Operating margins improving to 0.70% and net margins exceeding 0.75 %, supporting stronger cash generation.
Total Debt/TNW maintained below 1.0x, supported by steady accretion to net worth.
ISCR above 6.0x, DSCR above 6.5x, with adequate current ratio and liquidity.

Negative :

Operating margins remaining below 1.0% and net margins under 1.0%, reducing internal cash generation.
Total Debt/TNW rising above 1x, reflecting higher dependence on borrowings.
ISCR and DSCR below 5.0x indicate weak ability to service interest and debt, increasing liquidity and credit risk.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 1.23 Crore. Its capex requirements are modular and expected to be funded using debt of Rs. 140.00 Crore for which it has sufficient headroom. Its bank limits are utilized to the extent of 80% and has sought enhancement in bank lines, supported by the above unity current ratio.

The company’s liquidity position remains adequate, supported by a healthy current ratio of 2.45x in FY2025. Its debt-servicing ability is comfortable, as reflected by an ISCR of 10.79x and a DSCR of 12.59x in FY2025, indicating sufficient earnings to meet repayment obligations. Liquidity is further strengthened by healthy net cash accruals of Rs. 14.62 crore in FY2025, along with cash and bank balances of Rs. 1.23 crore, Rs. 5.99 crore, and Rs. 5.00 crore over the respective years. In addition, the company has invested around Rs. 29.85 crore in mutual funds, providing further financial flexibility. The company’s tangible net worth remains strong at Rs. 228.20 crore in FY2025 and is projected to improve to Rs. 239.99 crore in FY2026 and Rs. 266.49 crore in FY2027, offering additional financial comfort.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Services	Services	Commercial Services & Supplies	Trading & Distributors

RIKA Global Impex Limited was incorporated on 10 July 2007. The company was promoted by Mr. Suresh Kumar Agarwal, an experienced agro-trading professional who ventured independently after gaining extensive exposure through his family’s long-standing commodities trading business.

Mr. Karan Agarwal oversees the company’s import operations and financial matters, while Mr. Rishi Agarwal is responsible for export operations and expansion into non-traditional sectors.

The company is primarily engaged in the import, export, and trading of agricultural commodities and allied products. Its key product portfolio includes rice, wheat, sugar, pulses, oilseeds, and related commodities, catering to both domestic markets in India and international export markets.

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: The entity operates under an asset-light trading model with low direct environmental impact, managing energy use, waste handling, water consumption, and environmental compliance largely through third-party logistics and warehouse partners, with no reported environmental violations and adequate controls to meet applicable regulatory requirements.

Social: The entity maintains adequate labour practices by providing fair wages, statutory benefits, and safe working conditions for office and warehouse staff, follows basic workplace safety and training practices, promotes equal opportunity hiring and an inclusive work environment, invests in employee training and skill development relevant to trading and compliance, and ensures protection of customer and counterparty data through controlled access and standard data protection measures, resulting in moderate social risk exposure.

Governance: The entity demonstrates an adequate governance framework with experienced leadership providing oversight of financial, operational, and market risks, defined risk management and compliance processes for managing trading, counterparty, regulatory, and geopolitical risks, established ethical conduct and anti-corruption controls, data security and cybersecurity measures for digital systems, and regular engagement with key stakeholders, resulting in moderate governance risk.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	2192.42	2411.80	1937.51
EBITDA	Rs.Crs.	32.72	28.04	11.34
PAT	Rs.Crs.	30.90	26.58	10.80
Tangible Net Worth	Rs.Crs.	190.83	217.41	228.20
Total Debt / Tangible Net Worth	Times	0.06	Not Available	0.22
Current Ratio	Times	2.00	2.43	2.45

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency Status and Reason for Non-Cooparation Date of Press Release
CARE In the absence of adequate information from the company. 09Jun2025

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	In the absence of adequate information from the company.	09Jun2025

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	40.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	100.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		140.00	(Rupees One Hundred Forty Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Gokul D Rating Analyst gokul.d@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

RIKA GLOBAL IMPEX LIMITED

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	Bandhan Bank	Working Capital Demand Loan - Sanctioned	40.00	_	40.00	Simple##
2	State Bank Of India (SBI)	Warehouse Receipts (WHR) - Sanctioned	_	100.00	100.00	Simple##
Total			40.00	100.00	140.00
TOTAL (Rupees One Hundred Forty Crores 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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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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