Rating Rationale

September 22, 2014

Mumbai

Lakshmi Energy and Foods Limited

Rating Suspended

Total Bank Loan Facilities Rated	Rs.8250 Million
Long Term Rating	Suspended

(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Lakshmi Energy and Foods Ltd (LEFL; part of the LEFL group). The suspension of ratings is on account of non-cooperation by LEFL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, LEFL is yet to provide adequate information to enable CRISIL to assess LEFL'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 Group

CRISIL continues to consolidate the business and financial risk profiles of LEFL and its subsidiaries, Punjab Greenfield Resources Ltd (PGRL), Lakshmi Green Power Ltd (LGPL), and Green Energy and Foods Pte Ltd, Singapore (GEFP). This is because all these companies together referred to herein as the LEFL group, have a common management and LEFL has extended financial support to each of the subsidiaries in the form of equity investment. Furthermore, PGRL purchases rice from LEFL and markets the same in the domestic as well as export markets.

Promoted by Mr. B S Uppal, LEFL was established in 1981. LEFL mills, processes, and sells rice in the domestic and international markets. The company has an integrated power plant and facilities for manufacturing rice bran, oil, cattle feed, and de-oiled cakes, among other products.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs.Million)	Rating	Facility	Amount (Rs.Million)	Rating
Cash Credit*	8250	Suspended	Cash Credit*	8250	CRISIL BB-/Stable
Total	8250	--	Total	8250	--

*Includes a sublimit of Rs.3950.0 Million of EPC/PCFC and Rs.1000.0 Million of FCL.

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Last updated: August, 2014

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September 22, 2014	http://www.crisil.com