KRBL Ltd. — Capital/Financing Update 2021

Feb 3, 2021

Dear Sir/Madam,

Sub: Disclosure for rev1s1on in credit rating pursuant to Regulation 30 of SESI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to the provisions of Regulation 30 read with Part A of Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), please note that ICRA Limited ("ICRA") and CARE Ratings Limited ("CARE") has revised the rating for the banking facilities and Commercial Paper limits of the Company as follows:

Type of Rating	Amount(Rs. In Crores)	Existing Rating	Revised Rating
BankinQ Limits on LonQ Term Scale	1,619	[ICRA] AA- (Stable)	[ICRA] AA-@
BankinQ Limits on Short Term Scale	179	[ICRA] A1+	[ICRAl A1+ <w< td=""></w<>
Commercial Paper	500	[ICRA] A1+	[ICRAl A 1 + <w< td=""></w<>
Commercial Paper	500	CARE A1+	CARE A1+ <w< td=""></w<>

@ - under watch with negative implications.

The rating has been revised due to detention of Mr. Anoop Kumar Gupta, Joint Managing Director of the Company, by the Enforcement Directorate while cooperating with the investigation in the Augusta Westland case.

We also enclose a copy of the rating letters received from ICRA and CARE.

We would like to reiterate that KRBL Limited or Mr. Gupta has nothing to do with the Augusta Westland case. KRBL Limited or Mr. Gupta was neither named in the charge-sheet/complaints nor has he been arrayed as an Accused in the Augusta Westland Case.

We once again would like to assure all our stakeholders that our operations are being carried out smoothly and will continue to be carried out in such a manner.

Further, the above said disclosure is also available on the Company's website at www.krblrice.com under the link Investor Relations.

This is for your information and record.

Thanking you,

Yours faithfully, Fim

~Sapra Company Secretary

Encl.: As above

Corporate Office : C-32. 5th & 6th Floor. Scctor-62. Noida-20130 L Gautambudh N·iirnr (U p) IND!!\ Regd. Office : 5190. Lahori Gate, Delhi - l l 0 006, INDIA. Tel · +9 l-11-'13968'.\18 1~··ix · .91 Jl '39' 8;";7· C'!N. • .N.1 LOI, . ", . + 'l •· ... ~ .. ( . ; · • . . . . :- •. ' · : · - -. o -'~ • i •, o. 111DLI993PLC0.52845 l cl. · · 9 l-L0-4060300, I ax . ·) 1 l 20-4060398. L-ma!l : mails~1;krblmd1a.com. Visit us at : www.krblricc.com WORLD'S LARGEST RICE MILLERS & BASMATI RICE EXPORTERS

ICRA Limited

Ref: D/RAT/2020-21/K-27/3

February 3, 2021

Mr. Rakesh Mehrotra Chief Financial Officer KRBL Limited C-32, 5th & 6th Floor, Sector - 62, Naida - 201301 Uttar Pradesh, India

Dear Sir,

Re: ICRA-assigned Credit Rating for Rs. 1798.0 crore of KRBL Limited (instrument details in Annexure) following material event

Please refer the Rating Agreement dated November 24, 2017 between ICRA Limited ("ICRA) and your company, whereby, lCRA is required to review the ratings assigned to your company on an annual basis or as and when the circumstances so warrant.

Please note that the Rating Committee of ICRA, after due consideration of the latest developments of your company, has placed the long-term rating of llCRAIAA- (pronounced as ICRA double A minus)t and short-term rating of llCRAIAI+ (pronounced as ICRA A one plus) for the captioned Line of Credit (LOC) under 'Watch with Negative Implications'.

In any of your publicity material or other document wherever you are using the above rating, it should be stated as [ICRA]AA-@/[ICRA]Al+@. The aforesaid ratings will be due for surveillance any time before August 3 I , 2021.

The Ratings are specific to the terms and conditions of the line of credit as indicated to us by you, and any change in the terms or size of the same would require a review of the Ratings by us. In case there is any change in the terms and conditions or the size of the rated line of credit, the same must be brought to our notice before the line of credit is used by you. In the event such changes occur after the Ratings have been assigned by us and their use has been confirmed by you, the Ratings would be subject to our review, following which there could be a change in the Ratings previously assigned. Notwithstanding the foregoing, any change in the over-all limit of the line of credit from that specified in the first paragraph of this letter would constitute an enhancement that would not be covered by or under the said Rating Agreement.

t For complete rating definition please refor to ICRA Website www.icra.in or any of the ICRA Rating Publications

ICRA reserves the right to review and/or, revise the above Ratings at any time on the basis of new information becoming available, or the required information not being available, or other circumstances that ICRA believes could have an impact on the Ratings assigned.

The Rating(s) assigned must be understood solely as an opinion and should not be treated, or cause to be treated, as recommendation to buy, sell, or hold the rated [Instrument] availed/issued by your company.

You are also requested to forthwith inform us about any default or delay in repayment of interest or principal amount of the instrument rated, as above, or any other debt instruments/ borrowing and keep us informed of any other developments which may have a direct or indirect impact on the debt servicing capability of the company including any proposal for re-schedulement or postponement of the repayment programmes of the dues/ debts of the company with any lender(s) I investor(s). Further, you are requested to inform us immediately as and when the borrowing limit for the instrument rated, as above, or as prescribed by the regulatory authority(ies) is exceeded.

We look forward to your communication and assure you of our best services.

With kind regards,

Yours sincerely,

for ICRA Limited

Digitally signed by SABYASACHI MAJUMDAR Date: 2021.02.03 11 :02:34 +05'30'

Sabyasachi Majumdar Senior Vice President

Encl:

'No Default Statement on the Company Letter Head'

To,

ICRA Limited Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurugram -122002

Dear Sir/ Madam,

• I. We hereby confirm that as on date there are no overdues or default on our listed debt obligations. (Securities).
• 1. We hereby confirm that as on date there are no overdues or default on our unlisted debt obligations. (Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of our listed debt obligations (Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of our un-listed debt obligations(Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of debt obligations guaranteed by us.
• 1. We hereby confirm that as on date and in the month ended <> there are no over dues or default on payment of interest/installment obligations on loans from banks/financial institutions.
• 1. We hereby confirm that as on date there are no over dues or default on payment of interest/installment obligations on loans from banks/financial institutions which continues beyond 30 days.
• 1. We hereby confirm that as on date there are no over dues or default on revolving facilities like cash credit, from banks/financial institutions which continues beyond 30 days.
• 1. We also confirm that there is no amount remaining unpaid for more than 30 days from the invocation of the bank guarantee facilities or devolvement of Letters of Credit as on date I in the month ended <> We also confirm that there has not been any instance of devolvement of Letter of Credit in the month ended <>
• I 0. We also confirm that there has been no overdrawal of the drawing power sanctioned by the bank for a period of more than 30 consecutive days in case of bank facilities which do not have scheduled maturity/repayment dates.
• 1. Details of default in payment of interest/installment obligations on loans including revolving facilities like cash credit from banks/financial institutions and any overdraws beyond what is sanctioned by the bank, beyond 30 days as on date/ in the month ended <>, in any of the above case (if any):

Name ofLender	Nature ofobligation	Date ofDefault	Currentdefaultamount	Amount tobe paid	Actual Date ofPayment (if any)	Remarks
Text	Term
	Loan, CC
Row2

1. Details of default in payment of principal/interest obligations as on date/ in the month ended <>, on our listed and unlisted debt obligations (Securities), in any of the above case (if any):

Name of theInstrument	ISIN	Amount tobe paid	Due Dateof Payment	Actual Dateof Payment	Remarks
NCO

Thanking You,

Yours faithfully,

</\uthorized Signatory of Issuer•

Annexure

Details of the bank limits rated by ICRA (Rated on long term scale)

	Amount (Rs. Cr.)	Rating	Assigned on
Fund Based Working Capital Limits
State Bank of India	600.0	[ICRA]AA-1/~	February 2, 202 I
DBS Bank Limited	200.0	[ICRA]AA-@	February 2, 2021
HDFC Bank Limited	500.0	[ICRA]AA-1/-0	February 2, 2021
Karnataka Bank Limited	10.0	[ICRA]AA- ({;)	February 2, 2021
Union Bank of India	10.0	[ICRA]AA-@	February 2, 2021
Indusind Bank	105.0	[ICRA]AA-@	February 2, 2021
Cooperative Rabobank U.A	150.0	(ICRA]AA-@	February 2, 2021
Sub Total (A)	1,575.0
Term Loans
State Bank oflndia	34.0	(ICRA]AA-@	February 2, 2021
Proposed	10.0	[ICRA]AA-@	February 2, 2021
Sub Total (B)	44.0
Grand Total (A+B)	1,619.0

Details of the bank limits rated by ICRA (Rated on short term scale)

	Amount (Rs. Cr.)	Rating	Assigned on
Non Fund Based Limits - LC/BG/Forward
State Bank of India	65.0	flCRA lA I+@	February 2, 2021
Karnataka Bank Limited	10.0	rICRA lA I+ rw	February 2, 2021
Corporation Bank	20.0	rlCRAlAl+rw	February 2, 2021
DBS Bank	4.0	rICRAlAl+@	February 2, 2021
Induslnd Bank	70.0	rICRAlAl+@	February 2, 2021
Proposed	10.0	rICRA lA 1 + r{/:	February 2, 2021
Total	179.0

@ - under Watch with Negative Implications

ICRA Limited

D/RAT/2020-21/K-27/2

February 3, 2021

Mr. Rakesh Mehrotra Chief Financial Officer KRBL Limited C-32, 5111 & 6'" Floor, Sector - 62, Noida - 20130 I Uttar Pradesh, India

Dear Sir,

Re: ICRA rating for Rs. 500.0 crore Commercial Paper of KRBL Limited

Please refer the Rating Agreement dated December 20, 2017 between ICRA Limited ("ICRA") and your company, whereby, ICRA is required to review the ratings assigned to your company on an annual basis or as and when circumstances so warrant.

Please note that the Rating Committee of ICRA, after due consideration of the latest developments in your company, has placed the llCRAJAI+ (pronounced as ICRA A one plus) rating for the aforementioned- instrument under 'Watch with Negative implications'. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.

In any of your publicity material or other document wherever you are using our above rating, it should be stated as llCRAIAI+@ (pronounced as ICRA A one plus under watch with negative implications).

Additionally, we wish to highlight the following with respect to the rating:

(a) If the instrument rated, as above, is not issued by you within a period of3 months from the date of this letter, the rating would need to be revalidated before issuance;

(b) Subject to Clause (c) below, our rating is valid from the date of this letter till August 31, 2021 ("Validity Period"). The rating will generally be due for review at the end of the Validity Period. The maturity date of the Commercial Paper shall not be after the end of the Validity Period. The Commercial Paper will have a maximum maturity of twelve months.

(c) ICRA reserves the right to review and/or, revise the above rating at any time on the basis of new information or unavailability of information or such circumstances, which ICRA believes, may have an impact on the aforesaid rating assigned to you.

Building No. 8, 2'"' Floor, Tower A DLF Cyber City, Phase II Gurugrarn - 122002, Haryana Tel. · +91.124.4545300 GIN L74999DL 1991 PLC042749 Website : www.icra.in Email : info@icraindia.corn Helpdesk: + 91.9354738909 Registered Office: 1105, Kailash Building. 11'" Floor, 26 Kasturba Gandhi Marg, New Delhi - 110001. Tel.: +91.11.23357940-45 RATING RESEARCH 0 INFORMATION

The rating, as aforesaid, however, should not be treated as a recommendation to buy, sell or hold the Commercial Paper issued by you. The above rating of "llCRA]Al+@" is assigned to your Commercial Paper size of Rs 500.0 crore and the maximum amount raised through Commercial Paper at any point in time, including any amount already outstanding, should not exceed Rs 500.0 crore. In case, you propose to enhance the size of the Commercial Paper, the same would be required to be rated afresh. ICRA does not assume any responsibility on its part, for any liability, that may arise consequent to your not complying with any eligibility criteria, applicable from time to time, for issuance of Commercial Paper.

You are requested to furnish a monthly '.No Default Statement (N DS) '(in the format enclosed) on the first working day of every month, confirming the timeliness of payment of all obligations against the rated debt programme. This is in line with requirements as prescribed in circular dated June 30, 2017 on 'Monitoring mu/ Review <~l Ratings by Credit Rating Agencies(CRA.)' issued by the Securities and Exchange Board of India ..

You are also requested to forthwith inform us about any default or delay in repayment of interest or principal amount of the instrument rated, as above, or any other debt instruments/ borrowing and keep us informed of any other developments which may have a direct or indirect impact on the debt servicing capability of the company including any proposal for re-schedulement or postponement of the repayment programmes of the dues/ debts of the company with any lender(s) I investor(s). Further, you are requested to inform us immediately as and when the borrowing limit for the instrument rated, as above, or as prescribed by the regulatory authority(ies) is exceeded.

We thank you for your kind cooperation extended during the course of the rating exercise. Should you require any clarification, please do not hesitate to get in touch with us.

We look forward to further strengthening our existing relationship and assure you of our best services.

With kind regards,

For ICRA Limited

Digitally signed by SABYASACHI MAJUMDAR Date: 2021.02.03 11 :01 :29 +05'30'

Sabyasachi Majumdar (Senior Vice President) sabyasachi@icraindia.com

Encl:

'No Default Statement on the Company Letter Head'

To,

ICRA Limited Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurugram -122002

Dear Sir/ Madam,

• I. We hereby confirm that as on date there are no overdues or default on our listed debt obligations. (Securities).
• 1. We hereby confirm that as on date there are no overdues or default on our unlisted debt ob ligations. (Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of our listed debt obligations (Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of our un-listed debt obligations(Securities).
• 1. We also confirm that in the month ended <>, there has been no instance of delay in servicing of debt obligations guaranteed by us.
• 1. We hereby confirm that as on date and in the month ended <> there are no over dues or default on payment of interest/installment obligations on loans from banks/financial institutions.
• 1. We hereby confirm that as on date there are no over dues or default on payment of interest/installment obligations on loans from banks/financial institutions which continues beyond 30 days.
• 1. We hereby confirm that as on date there are no over dues or default on revolving facilities like cash credit, from banks/financial institutions which continues beyond 30 days.
• 1. We also confirm that there is no amount remaining unpaid for more than 30 days from the invocation of the bank guarantee facilities or devolvement of Letters of Credit as on date I in the month ended <> We also confirm that there has not been any instance of devolvement of Letter of Credit in the month ended <>
• I 0. We also confirm that there has been no overdrawal of the drawing power sanctioned by the bank for a period of more than 30 consecutive days in case of bank facilities which do not have scheduled maturity/repayment dates.
• 1. Details of default in payment of interest/installment obligations on loans including revolving facilities like cash credit from banks/financial institutions and any overdraws beyond what is sanctioned by the bank, beyond 30 days as on date/ in the month ended <>, in any of the above case (if any):

Name ofLender	Nature ofobligation	Date ofDefault	Currentdefaultamount	Amount tobe paid	Actual Date ofPayment (if any)	Remarks
Text	Tenn
	Loan, CC
Row2

1. Details of default in payment of principal/interest obligations as on date/ in the month ended <>, on our listed and unlisted debt obligations (Securities), in any of the above case (if any):

Name of theInstrument	ISIN	Amount tobe paid	Due Dateof Payment	Actual Dateof Payment	Remarks
NCD

Thanking You,

Yours faithfully,

No. CARE/DRO/RL/2020-21/3495 Mr. Rakesh Mehrotra Chief Financial Officer, KRBL Limited C-32, 5th Floor, Sector -62 Noida, Gautam Budh Nagar - 201301

February 02, 2021

Confidential

Dear Sir,

Credit rating for Commercial Paper (CP) issue aggregating Rs.500.00 crore 1

On the basis of recent developments including operational and financial performance of your company for FY20 and the recent arrest of the Joint MD by the Enforcement Directorate and the possible impact of the same on the credit profile of your company our Rating Committee has reviewed the following rating:

Instrument	Amount(Rs. crore)	Rating 2	Rating Action
Commercial Paper (Carved$out)*$	500.00	CARE A1+ (Under Creditwatch with NegativeImplications)(A One Plus) (Under Creditwatch with NegativeImplications)	Placed on Credit watchwith NegativeImplications
Total Instruments	500.00(Rs. Five Hundred Crore Only)

*carved out of the sanctioned working capital limits of the company.

• 1. The CP issue would be for a maturity not exceeding one year.
• 1. CARE will take a view on the ratings once the exact implications of the above on the credit risk profile of the company are clear.
• 1. Please arrange to get the rating revalidated in case the issue is not made within two months from the date of this letter i.e. by April 01, 2021. Once the CP is placed, the rating is valid for the tenure of such instrument till redemption.

Complete definitions of the ratings assigned are available at www.careratinqs.com and in other CARE publications.

CARE Ratings Ltd.

CORPORATE OFFICE: 4 th Floor, Godrej Coliseum, Somaiya Hospital Road,
Off Eastern Express Highway, Sion (E), Mumbai - 400 022.
Tel.: +91-22- 6754 3456 • Fax: +91-22- 022 6754 3457
Email: $care@careratings.com \rightarrow www.careratings.com$

1This represents the aggregate of all CP issuances of the company outstanding at any point in time. 2

1. Please inform us the below-mentioned details of issue immediately, but not later than 7 days from the date of placing the instrument:

Instrumenttype	ISIN	IssueSize(Rser.)	CouponRate	CouponPaymentDates	Terms ofRedemption	Redemptiondate	Name andcontact detailsof Trustee/IPA	Details oftop 10investors
--------------------	------	------------------------------	----------------	----------------------------	------------------------	--------------------	-----------------------------------------------	-----------------------------------

• 1. The rationale for the rating will be communicated to you separately. A write-up (press release) on the above rating is proposed to be issued to the press shortly/by end of the day, a draft of which is enclosed for your perusal as Annexure. We request you to peruse the annexed document and offer your comments if any. We are doing this as a matter of courtesy to our clients and with a view to ensure that no factual inaccuracies have inadvertently crept in. Kindly revert as early as possible. In any case, if we do not hear from you by February 02, 2021, we will proceed on the basis that you have no any comments to offer.
• 1. CARE reserves the right to undertake a surveillance/review of the rating from time to time, based on circumstances warranting such review, subject to at least one such review/surveillance every year.
• 1. CARE reserves the right to revise/reaffirm/withdraw the rating assigned as a result of periodic review/surveillance, based on any event or information which in the opinion of CARE warrants such an action. In the event of failure on the part of the entity to furnish such information, material or clarifications as may be required by CARE so as to enable it to carry out continuous monitoring of the rating of the debt instruments, CARE shall carry out the review on the basis of best available information throughout the life time of such instruments. In such cases the credit rating symbol shall be accompanied by "ISSUER NOT COOPERATING". CARE shall also be entitled to publicize/disseminate all the afore-mentioned rating actions in any manner considered appropriate by it, without reference to you.
• 1. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.
• 1. Users of this rating may kindly refer our website www.careratings.com for latest update on the outstanding rating.
• 1. CARE ratings are not recommendations to buy, sell, or hold any securities.

If you need any clarification, you are welcome to approach us in this regard.

CARE Ratings Ltd.

Thanking you,

Yours faithfully,

Harneet Deepak Chaudhary Deputy Manager harneet.chaudhary@careratings.com

Gaurav Dixit Associate Director gaurav.dixit@careratings.com

Encl.: As above

Disclaimer

CARE's ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE's ratings do not convey suitability or price for the investor. CARE's ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE's rating.

Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.

CARE Ratings Ltd.

Annexure

KRBL Limited

Ratings

Facilities/Instruments	Amount(Rs. crore)	Ratings	Rating Action
Commercial Paper (Carved out)*	500.00	CARE Al+ (Under Credit watch withNegative Implications)(A One Plus) (Under Credit watchwith Negative Implications )	Placed on Credit watchwith Negative Implications
Total Short Term Instruments	500.00(Rs. Five Hundred CroreOnly)

*carved out of the sanctioned working capital limits of the company

Details of instruments/facilities in Annexure-1

Detailed Rationale & Key Rating Drivers

CARE has placed the rating of KRBL Limited (KRBL) on credit watch with negative implications as the Enforcement Directorate (ED) has arrested Mr. Anoop Gupta, the Joint Managing Director of KRBL on January 30, 2021 in connection with its money laundering probe into the AgustaWestland scam. CARE will continue to monitor the developments in this regard and will take a view on the rating, once the exact implications of the above on the credit risk profile of the company are clear.

Further, CARE is also continuously monitoring the developments on other ongoing legal case wherein the ED has attached assets of KRBL under Prevention of Money Laundering Act, 2002 (PMLA) in connection with 2008 Embraer deal case.

Key Rating Sensitivities

Negative Factors

• Any adverse development in relation to the ongoing legal cases.
• Significant debt-funded capex resulting in deterioration of capital structure with overall gearing increasing more than l.Ox on a sustained basis.
• Adverse changes in import policies of key importing countries affecting the prices of Basmati rice and profitability of the company.

Detailed Description of the Key Rating Driver

The ED has arrested the Joint Managing Director of KRBL- Mr. Anoop Gupta in connection with its money laundering probe into VVIP choppers purchase (AgustaWestland) scam case, on January 30, 2021. As per media reports, ED in its remand application stated that approximately Euro 70 million proceeds of crime were laundered through two channels for payment of kickbacks to various political persons, bureaucrats, Air Force officials and others to influence the contract for supply of 12 VVIP helicopters in favour of Anglo-Italian firm - AgustaWestland. Further the proceeds of the crime was also received in Rawasi Al Khaleej General Trading (RAKGT) LLC Dubai which was incorporated in 2007 by KRBL DMCC, Dubai (a 100% subsidiary of KRBL Ltd) and Mr. Anoop Gupta was also one of the director of this company. However, CARE is awaiting more clarity with regard to aforesaid issue and may take a view on the rating of KRBL once further clarity emerges on the same.

Further, with respect to the Embraer deal case, the ED in December 2020 had filed a charge sheet before a special Prevention of Money Laundering Act (PMLA) court and has named Embraer SA, Brazil, lnterdev Aviation Services Pte Ltd, KRBL Limited, Anoop Kumar Gupta (director of KRBL Limited), Anurag Potdar (nephew of Anoop Kumar Gupta) and others. The investigation conducted so far has resulted in the issuance of provisional attachment order of proceeds of crime in the form of immovable properties worth Rs 16.29 crore

CARE Ratings Ltd.

CORPORATE OFFICE: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai 400 022. Tel.: +91-22- 6754 3456 • Fax: +91-22- 022 6754 3457 Email: care@careratings.com • www.careratings.com

belonging to KRBL Ltd. The provisional attachment order has been confirmed by the Adjudicating Authority under PMLA. However, as per the Delhi High Court order dated October 23, 2020, the company was allowed to use the above mentioned land.

Analytical approach: Standalone

Applicable Criteria Criteria on assigning Outlook and Credit Watch to Credit Ratings CARE's Policy on Default Recognition Criteria for Short Term Instruments Rating Methodology-Manufacturing Companies Financial ratios - Non-Financial Sector .Liquidity Analysis of Non-Financial Sector Entities

About the Company

KRBL Limited (KRBL) was incorporated in 1993 by Mr. Anil K. Mittal, Mr. Anoop K. Gupta and Mr. Arun K. Gupta. The promoters have been involved into this business since 1889 under the name of Khushi Ram & Behari Lal.

KRBL is one of the largest fully integrated domestic rice players with an installed manufacturing capacity of 195 Metric Tonnes per hour (TPH). The company is engaged in the production and marketing of Basmati rice and is also engaged in seed development and multiplication and contact farming. Being an integrated player, it also generates value-added by-products like brain oil, de-oiled cakes and uses rice husks for captive power plant. The company also derives around 3% of its revenue through electricity generation. It has 144.84 MW of renewable power generation capacity through wind turbine (114.35 MW), biomass power plant (17.59 MW) & solar power plant (15 MW). One-third of the power generated is used towards captive consumption whereas the remaining is sold. However, KRBL is now evaluating to demerge this segment into a new company.

Covenants of rated instrument I facility: Detailed explanation of covenants of the rated instruments/facilities is given in Annexure-3

Brief Financials (Rs. crore)	FY19 (A)	FY20(A)
Total operating income	4126.59	4514.51
PB I LDT	857.30	887.64
PAT	503.27	559.41
Overall gearing (times)	0.57	0.28
Interest coverage (times)	12.69	14.22

A: Audited

Status of non-cooperation with previous CRA: Not Applicable

Any other information: Not Applicable

Rating History for last three years: Please refer Annexure-2

Annexure-1: Details of Instruments/Facilities

Name of theInstrument	Date ofIssuance	CouponRate	MaturityDate	Size of theIssue{Rs.crore)	Rating assigned alongwith Rating Outlook
Commercial PaperCommercial Paper(Carved out)	-	-	-	500.00	CARE Al+ (Under Creditwatch with NegativeImplications)

Annexure-2: Rating History of last three years

Sr.	Name of the	Current Ratings	Rating history
			CARE Ratings Ltd.

No.	Instrument/BankFacilities	Type	AmountOutstanding(Rs. crore)	Rating	Date(s) &Rating(s)assigned in2020-2021	Date(s) &Rating(s)assigned in2019-2020	Rating(s)assignedin 2018-2019	Date(s) & Date(s) &Rating(s)assignedin 2017-2018
1.	Commercial Paper-Commercial Paper(Carved out)	ST	500.00	CARE Al+(Under Creditwatch withNegativeImplications)	l)CARE Al+(03-Dec-20)2)CARE Al+(Under Creditwatch withNegativeImplications)(07-Sep-20)	l)CARE Al+(Under Creditwatch withNegativeImplications)(22-Nov-19)2)CARE Al+(Under Credit Al+watch withNegativeImplications)(06-Sep-19)3)CARE Al+(Under Creditwatch withNegativeImplications)(15-Jul-19)	l)CARE(27-Sep-18)	l)CAREAl+(26-Dec-17)2)CAREAl+(OS-Dec-17)3)CAREAl+(27-Sep17)

Annexure-3: Detailed explanation of covenants of the rated instrument/ facilities - NA

Annexure 4: Complexity level of various instruments rated for this Company

Sr.No.	Name of the Instrument	Complexity Level
1.	Commercial Paper-Commercial Paper (Carved out)	Simple

Note on complexity levels of the rated instrument: CARE has classified instruments rated by it an the basis of complexity. This classificotian is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to care@careratings.com far any clarifications.

Contact us

Media Contact

Name: Mradul Mishra Contact no: +91-22-6837 4424 Email ID: mradul.mishra@careratings.com

Analyst Contact

Group Head Name: Gaurav Dixit Group Head Contact no: +91-11 - 4533 3235 Group Head Email ID: gaurav.dixit@careratings.com

Business Development Contact Name: Swati Agrawal Contact no: +91-11-4533 3200

CARE Ratings Ltd.

Email ID: swati.agrawal@careratings.com

About CARE Ratings:

CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices.

Disclaimer

CARE's ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE's ratings do not convey suitability or price for the investor. CARE's ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, interalia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE's rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.

**For detailed Rationale Report and subscription information, please contact us at www.careratings.com

CARE Ratings Ltd.