| GRM Overseas Limited | ||||||
| Issuer not cooperating, based on best-available information; Ratings migrated to ‘CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' | ||||||
| Rating Action | ||||||
| ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities | ||||||
| *Issuer did not cooperate; based on best-available information | ||||||
| Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'. |
Non cooperation by Issuer CRISIL Ratings has been consistently following up with GRM Overseas Limited (GRM) for obtaining information through letters and emails dated April 29, 2022 and May 05, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative.
‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’ |
Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GRM, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GRM is consistent with ‘Assessing Information Adequacy Risk’. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of GRM to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' from ‘CRISIL BBB/Stable/CRISIL A3+’.
To arrive at its rating, CRISIL Ratings has combined the business and financial risk profiles of GRM with its subsidiaries, GRM International Holdings Ltd. (GIHL) and GRM Fine Food Inc. (GFFI) both wholly owned subsidiaries. This is because all these entities, together referred to as the GRM group, are in the same business. Also, GRM holds significant control over other entities. |
About the Company GRM is a public limited company that processes and exports basmati rice (PUSA 1121 quality). The company has three processing centres with five fully automatic units in Panipat, Haryana, with total capacity of 20 tonne per hour. It sells rice under its own brands as well as customers’ brands under private label arrangements. Mr HC Garg and Mr Atul Garg are the promoters of the company.
GHIL and GFFI are wholly owned subsidiary of GRM, having operations in U.K. and U.S.A. Both the subsidiary engaged in similar line of business. |
Key Financial Indicators
Source: BSE Website |
Any other information: Not applicable |
| Note on complexity levels of the rated instrument: CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments. |
Annexure - Details of Instrument(s)*
*Issuer did not cooperate; based on best-available information |
| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
|
* - Issuer did not cooperate; based on best-available information
|
|||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||
|
Criteria Details
|