Kings Dried Foods Pvt. Ltd.

Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 55.64 Crs. of Kings Dried Foods Pvt. Ltd.

Particulars

Facilities/Instruments	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (30 Sep 2025)	Present
Fund Based	62.42	53.99	Long Term	BWR B+/Stable Assignment	BWR B + /Stable Reaffirmation/Withdrawal	RBI
Non Fund Based	1.65	1.65	Short Term	BWR A4 Assignment	BWR A4 Reaffirmation/Withdrawal	RBI
	(10.00)	(10.00)
	(4.50)	(4.50)
	(1.22)	(1.22)
Grand Total	64.07	55.64	(Rupees Fifty Five Crores and Sixty Four lakhs Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated
RATING ACTION / OUTLOOK / WITHDRAWAL

Brickwork Ratings has reaffirmed the long-term and short-term ratings at 'BWR B+/Stable/A4' and simultaneously withdrawn the ratings for the bank loan facilities aggregating to Rs. 55.64 Crore of Kings Dried Foods Pvt. Ltd., in line with the extant SEBI guidelines and BWR’s withdrawal policy. The rating withdrawal is based on the request received from the company, along with the No Objection Certificate (NOC) received from the sole lender (State Bank of India), submission of No Default Statement (NDS), and satisfactory feedback received from the banker regarding the conduct of the account, which is held on record. The withdrawal is in line with the BWR Rating Withdrawal Policy. 

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

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

Unsecured loans shall not be withdrawn during the currency of the loan.

Rest Standard covenants applicable

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of promoters in the same line of business: :

  KDPL is promoted and managed by Mr. Husainali Vakil, Mr. Mohmedraza Vakil, Mr. Mohmmedtaqi Vakil, Ms. Fizabanu Vakil, Ms. Saiyadabanu Vakil and Ms. Shainbanu Vakil. Mr. Husainali Vakil has extensive experience of four decades in Onion dehydration industry through group entities viz. Kings Dehydrated Foods Pvt. Ltd., Nice Dehydration Pvt ltd., Kings Cold Storage. Mr. Husainali Vakil is having rich experience of more than 40 years in food processing Industry. Mr. Mohamedraza Vakil, has the doctorate degree in business management and he has experience in the industries for more than 17 years. Mr. Mohmmedtaqi Vakil, has industry experience of more than 25 Years. Ms. Fizabanu Vakil is active partner of the Kings storage along with Mr. Husainali vakil. Ms. Saiyadabanu Vakil is active partner of the European Dehydrated Foods since 2015. Ms. Shahinbanu Vakil active partner of the European Dehydrated Foods, since 2015.

• Easy raw material availability: :

  Mahuva is recognized as the second largest manufacturing and exporting hub of dehydrated onions, with more than 120 large-scale dehydration plants. The small town is located on the coast of Arabian Sea, a coastal city has been providing the perfect opportunity for exporting the Dehydrated onions/products to the other
  countries. The Availability of the local workers will be easy to employee. The location has lots Onions dehydration plants and thus, the availability of the trained workers for the appropriate work, would be easy to find. The location site is well connected to the Road transportation, National Highway and Pipava port and the connectivity to the National Highway NH8E, will help for easy and fast transportation services and their availability to the company.

Credit Risks:

• Volatility in agro commodity prices: :

  India is the second largest producer of onion in the world after China. Major onion growing states are Maharashtra, Karnataka, Gujarat, Madhya Pradesh, and Bihar. Its supply chain is highly affected by external shocks like weather abnormalities and policy regulations. High perishability and lack of adequate cold storage system are also constraints of uninterrupted supply chain. Furthermore, onion price exhibits a high degree of volatility. 

RATING SENSITIVITIES

Going forward, the ability of the company to improve its revenue and financial risk profile would remain the key rating sensitivities. 

Positive:
 

• The rating may be upgraded if operating revenue increases by over 25% and operating margins improve by over 20% on a sustained basis .

Negative:
 

• The rating may be downgraded if operating revenue declines by 20% or operating margins deteriorate by 20% on a sustained basis

LIQUIDITY INDICATORS - Stretched

Liquidity Indicator is Stretched: Tightly matched accruals to repayment obligations, with highly utilized bank limits and modest cash reserves.

The liquidity of the company is stretched owing to lower net cash accruals in comparison to the current portion of long-term debt. The net cash accrual stood at Rs. 0.03 Crs during FY24. The current portion of long-term debt stood at Rs. 1.35 Crs as on 31 Mar 2024. The cash and bank balance stood at Rs. 2.65 Crs during FY24. The current ratio stood at 3.16x during FY24.  The total debt / TNW stood high at  6.25x during FY24. The net cash accrual stood at Rs. 4.67 Crs during FY25. The current portion of long-term debt stood at Rs. 10.09 Crs as on 31 Mar 2025. The cash and bank balance stood at Rs. 0.03 Crs during FY25. The current ratio stood at 1.01x during FY25.  The total debt / TNW stood high at 2.84x during FY25. The ISCR stood at 1.66x during FY25. The DSCR Stood at 1.28x during FY 25. 

COMPANY's / FIRM's PROFILE

Kings Dried Foods Pvt. Ltd. was incorporated on September 17, 2020 by the promoters of the company,  Mr. Husanali K. Vakil and his sons Mr. Mohamedraza H. Vakil, Mr. Mohmmaedtaqi H. Vakil . Later in 2023, 3 more directors have joined the company Mrs. Fizabanu Husanali Vakil, Mrs. Shahinbanu Mohmmaedtaqi Vakil and Mrs. Saiyadabanu Mohamedraza Vakil. All are members of the same family. The company is based in Mahuva, Bhavnagar, Gujarat. This family run business was set up as a greenfield project expected to begin commercial production in Apr 2024. The company is setup for manufacturing of Dehydrated Onion with total capacity of 13,200 Metric Tons Per Annum (MTPA). The commercial production begun i the month of Apr 2024.The company also has capacity for processing of raw onion with capacity of 1,29,600 MTPA and inhouse cold storage facility of 5,000 MTPA to support the onion dehydration process. The final product is used in spices, soup,ketchup, maggi etc. 

ESG Profile

NA

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	CARE Ratings continues to maintain its ratings on Kings Dried Foods Pvt. Ltd. under the Issuer Not Cooperating (INC) category at CARE B-/Stable/A4; Issuer Not Cooperating.	14Apr2026

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)

Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.)	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	53.99	BWR B+/Stable (Reaffirmation/Withdrawal)	13Jun2025	BWR B+Stable (Non Accepted Ratings)	NA	NA	NA	NA
		0.00	NA	30Sep2025	BWR B+Stable (Assignment)	NA	NA	NA	NA
Non Fund Based	ST	1.65	BWR A4 (Reaffirmation/Withdrawal)	13Jun2025	BWR A4 (Non Accepted Ratings)	NA	NA	NA	NA
		0.00	NA	30Sep2025	BWR A4 (Assignment)	NA	NA	NA	NA
NFB SubLimit	ST	(10.00)	BWR A4 (Reaffirmation/Withdrawal)	13Jun2025	BWR A4 (Non Accepted Ratings)	NA	NA	NA	NA
		(4.50)	BWR A4 (Reaffirmation/Withdrawal)	30Sep2025	BWR A4 (Assignment)	NA	NA	NA	NA
NFB SubLimit	ST	(1.22)	BWR A4 (Reaffirmation/Withdrawal)	NA	NA	NA	NA	NA	NA
Grand Total		55.64	(Rupees Fifty Five Crores and Sixty Four lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Short Term Debt
• BWR Withdrawal Policy
• Manufacturing Company

Analytical Contacts
Pradnya Tolanavar Ratings Analyst pradnya.t@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
Client Support | clientsupport@brickworkratings.com

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	State Bank Of India (SBI)	Term Loan - Out-standing	28.99	_	28.99	Simple##
2	State Bank Of India (SBI)	Cash Credit - Sanctioned	25.00	_	25.00	Simple##
	Sub-Limit (Sub-Limit (Bank Guarantee)) - Sanctioned		(4.50)
	Sub-Limit (Sub-Limit (Credit exposure limit) ) - Sanctioned		(1.22)
	Sub-Limit (Sub-Limit (EPC/FBD/PCFC/EBR)) - Sanctioned		(10.00)
3	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	1.65	1.65	Simple##
Total			53.99	1.65	55.64
TOTAL (Rupees Fifty Five Crores and Sixty Four lakhs Only)

## The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural,transactional or legal aspects. Details on the complexity levels of the instruments are available on BWR's website Complexity Levels.

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