December 17, 2014
Mumbai
Rasoi Limited
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.500 Million
Long Term Rating Suspended
Short Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Rasoi Ltd (Rasoi). The suspension of ratings is on account of non-cooperation by Rasoi with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Rasoi is yet to provide adequate information to enable CRISIL to assess Rasoi's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'.

About the Company

Rasoi was originally set up in 1905 as Majegram Tea Company by the Lord Inchcape group, the UK; the firm was acquired by Mr. Raghu Mody, the current chairman, in July 1964. Thereafter, Mr. Mody acquired the vanaspati business under the Rasoi brand from Mr. P M Talukdar of the Hindustan Insurance group in 1965. The firm acquired its present name in 1982. Rasoi processes and sells, and trades vanaspati and refined oils (including palm, soya bean, rice bran, and mustard oils) under the Rasoi brand. Its plant in Falta (West Bengal) has a capacity to produce 42,000 tonnes per annum (tpa) of vanaspati and 30,000 tpa of refined oil.

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Bank Guarantee 7.5 Suspended Bank Guarantee 7.5 CRISIL A4+
Cash Credit 70 Suspended Cash Credit 70 CRISIL BB/Stable
Inland/Import Letter of Credit 250 Suspended Inland/Import Letter of Credit 250 CRISIL A4+
Letter of Credit 110 Suspended Letter of Credit 110 CRISIL A4+
Proposed Short Term Bank Loan Facility 62.5 Suspended Proposed Short Term Bank Loan Facility 62.5 CRISIL A4+
Total 500 -- Total 500 --
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Last updated: August, 2014

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December 17, 2014

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