Rice

PAIPL's scale of operations is modest with reported revenue of Rs19.55 crores during fiscal 2019. The revenue has remained in the range of Rs.18 crore to Rs.26 crore over the past three years through 2019. PAIPL's operating margin has been volatile in the range of 4.8% to 7.8% in last three years through 2019 due to volatility in prices and availability of paddy. Changes in climatic conditions, uneven monsoon can lead to variation in paddy production. Gearing is moderately high at 1.90 times as on March 31, 2019, owing to modest networth of Rs 3.90 crore and sizable working capital debt of Rs 6.5 cr. Interest coverage and net cash accrual to adjusted debt ratios remained average and were estimated at 2.28 times and 0.12 time, respectively, for fiscal 2019. Promoters of PAIPL have an experience of over a decade in rice milling business which has enabled the firm to maintain established relationship with its customer and suppliers. Cash accrual are expected to be over Rs 99 lakhs which are sufficient against term debt obligation of Rs 20-50 lakhs over the medium term. In addition, it will be act as cushion to the liquidity of the company. Bank limits are almost fully utilised for the last 12 months ended March 31, 2019.