December 09, 2013

Mumbai

Rasoya Proteins Limited

Rating Suspended

Total Bank Loan Facilities Rated	Rs.1720 Million
Long-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its rating on the bank facilities of Rasoya Proteins Ltd (Rasoya). The suspension of ratings is on account of non-cooperation by Rasoya with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Rasoya is yet to provide adequate information to enable CRISIL to assess Rasoya’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

Rasoya, incorporated in 1992, manufactures soyabean refined oil and soya de-oiled cakes. The Nagpur-based company has its production unit in Wani, Yavatmal (Maharashtra) and Malkapur (Maharashtra). The company has 900 tonnes per day (tpd) of seed crushing capacity and 150 tpd of oil refining capacity in Yawatmal and 1000 tpd extraction facility in Malkapur. It has lecithin manufacturing capacities of 7 tpd in Wani. It plans to incur capex of Rs.1.7 billion over the medium term which includes plant for value added products at Wani amongst others. In September 2009, Rasoya commissioned a captive 10-megawatt (MW) thermal power plant in Yavatmal. Under its power purchase agreement with Maharashtra State Electricity Board (MSEB) to sell 5 megawatts of power at Rs.4.5 per unit, the company began merchant sales from September 1, 2010.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	320	Suspended	Cash Credit	320	CRISIL BB/Stable
Proposed Long Term Bank Loan Facility	550	Suspended	Proposed Long Term Bank Loan Facility	550	CRISIL BB/Stable
Term Loan	850	Suspended	Term Loan	850	CRISIL BB/Stable
Total	1720	--	Total	1720	--

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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Phone: +91-22- 3342 1818 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Phone: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com	Vasudevan R Director - CRISIL Ratings Phone: +91-44-6656 3100 Email:vasudevan.r@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 Email:CRISILratingdesk@crisil.com

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Last updated: May, 2013

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December 09, 2013	http://www.crisil.com