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Banks (Finance)

ICRA Reaffirms Long-Term Rating of Srinivasa Rice Industry

Strategic Insights

— 1 min read

Srinivasa Rice Industry, a leading player in the rice milling industry, has been reaffirmed with a long-term rating of ICRA B+ (pronounced ICRA B plus) by ICRA, a leading credit rating agency in India. The rating reaffirmation continues to factor in the company's weak financial profile, characterized by low profitability, moderate gearing, and stretched coverage indicators. The company's policy restrictions on open market sales, competitive industry landscape, and exposure to climatic risks are also significant constraints. However, the rating is favorably influenced by the company's experienced promoters, long-standing presence in the rice milling industry, and presence in major paddy-growing areas.

Key Takeaways:

  • The ICRA rating of ICRA B+ (pronounced ICRA B plus) has been reaffirmed for Srinivasa Rice Industry's Rs.8.19 crore fund-based limits.
  • The rating continues to factor in the company's weak financial profile, characterized by low profitability, moderate gearing, and stretched coverage indicators.
  • The rating is constrained by policy restrictions on open market sales, competitive industry landscape, and exposure to climatic risks.
  • The company's experienced promoters and long-standing presence in the rice milling industry are significant strengths.
  • The rating also favors the company's presence in major paddy-growing areas and in the retail market with its own brands in Kerala and Andhra Pradesh markets.

Statistics:

  • Rs.8.19 crore: The amount of fund-based limits of Srinivasa Rice Industry's ICRA rating.
  • 86,400 MTPA: The milling capacity of Srinivasa Rice Industry's milling unit in Mandapeta, East Godavari district of Andhra Pradesh.
  • 2005: The year in which Srinivasa Rice Industry was established.
  • 05: The number of partners who promoted Srinivasa Rice Industry with Mr. R. Rambabu.

Sources:

  • Srinivasa Rice Industry Instrument Amount Rating Action In Rs. crore Long term fund based limits 8.19 [ICRA]B+ reaffirmed
  • ICRA is a leading credit rating agency in India.

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