Balrampur Chini Mills : Credit Rating

REGO. OFF. : "FMC FORTUNA" 2ND FLOOR, 234/3A, A. J. C. BOSE ROAD, KOLKATA - 700 020 PHONE : 2287-4749 FAX : (033) 22873083 I 22808874 GRAM : BALSUCO, CALCUTIA

Email : bcml@bcml.in • Internet Website http : I I www.chini.com • CIN - L15421WB1975PLC030118

31st January, 2017

Dear Sir/ Madam,

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015

Sub: Update on Credit Rating for Commercial Paper (CP) I Short Term Debt (STD)

Further to our letter dated 9th November , 2016 on the captioned subject, we would l ike to inform you that ICRA Limited -the Cred it Rati ng Agency has vide its letter dated 31st January, 2017 (copy enclosed) has assigned the rating of "{ICRAJ Al+" (pronounced ICRA A One Plus) for the enhanced amount of Rs. 200 Crores for CP/STD.

r q

This is for your information and records please. Thanking you,

Yours faithfully,

For Balrampur Chini Mills Limited

Nitin Baga ria

(Company Sec tary)

FACTORIES : BALRAMPUR • BABHNAN •TULSIPUR • HAIDERGARH •AKBARPUR • MANKAPUR • RAUZAGAON • KUMBHI • GULARIA • MAIZAPUR • KHALILABAD

ICRA ICRA Limited

Ref: ICRA/ KOL/RA /201 6- I 7/765

Jan uary 3 1 , 201 7

M r. Pramod Patwari

Ch ief Financial Officer

Bal ram pur Chin i M i l ls Limited FMC Fo1iuna, 2nd Floor 234/3A, A J C Bose Road Kolkata 700020

Dear Sir,

Re: ICRA rating for Rs. 1200 crore Commercial Paper (CP)/Short Term Debt (STD) Programme of Balrma pu r Chini Mills Ltd.

This is with reference to the outstand ing rati ng of [ICRA)A I + (pronounced as ICRA A One Plus) assigned to the Rs. 1000 crore CP/STD programme of you r company and last commun icated vide our letter dated November 30, 2016. Please refer to your Rating Agreement of January 25, 2017 seeking rating for an enhanced amou nt of Rs. 200 crore. Please note that the Rati ng Com m ittee ofICRA after due

.consideration of the latest developments i n your company, has assigned the rating of "(ICRA]A I +" (pronou nced as A One Plus) to your CP/CD/STD program me for an enhanced amou nt of Rs. 200 crore. Instruments with "[IC] A I rating is considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest cred it risk. With i n this category rating mod ifier {"+" (plus)} can be used with the rating symbols. The mod ifier reflects the comparative stand ing withi n the category

In any of your publicity material or other document wherever you are using the above rating, it should be stated as "[ICRA] A I +". We would appreciate if you can sign on the dupl icate copy of this letter and send it to us latest by February 10, 201 7 as acceptance on the assigned rati ng. The rationale for assigning the above rating wi ll be sent to you on recei pt of your acceptance on rati ng, as above In case you do not com mu nicate your acceptance/non acceptance of the assigned credit rating, or do not appeal against the assigned cred it rating by the aforesaid date, the credit rating will be treated by us as non accepted and shall be disclosed on ICRA 's website as non accepted cred it rating. This is in line with requi rements as prescri bed in the circular dated November I , 201 6 on 'Enhanced Standards for Credit Rating Agencies' issued by the Securities and Exchange Board of Ind ia, which states tf1e following:

" Each CRA shall disclose on its website details of all ratings assigned by them, irrespective of whether the rating is accepted by the issuer or not, even in the case of non- public issues".

FMC FORTUNA, A-10 & A-11

3rd Floor, 234/3A A.J.C. Bose Road Kolkata - 700 020

Tel. : +91 . 33 . 71501100

Fax : +91 . 33 . 71501150

GIN : L74999DL1991 PLC042749

website : www.icra.in

email : info@icraindia.com

Registered Office : 1105, Kailash Building, 11'" Floor, 26 Kasturba Gandl1i Marg, New Delhi - 110001, Tel.: +91.11. 23357040-45 Fax : +91 .11. 23357945

Corporate Office : Building No. 8, Tower-A, 2"' Floor, DLF Cyber City, Phase II, Gurgaon - 122002, Tel.: +91, 124.4545300 Fax : +91.124.4050424

R A T I N G • R E S E A R C H • I N F O R M A T I O N

A ny i nformation by you about the above rati ng to any Banker/Lend ing Agency/Govern ment A uthorities/Stock Exchange wou l d constitute use of th is rati ng by you and shall be deemed acceptance of the rati ng.

,,I'

Add itional l y, we wish to h igh l ight the fol l owi ng witrespect to the rati ng:

1. If the i nstru ment rated , as above, is not issued by you wi th i n a period of 3 months from the date of th is letter, the rati ng wou ld need to be reval idated before issuance;

2. Subject to Clause (c) below, our rati ng is val id from the date of th is letter ti l l November 20, 2017 ("Val idity Period "). The rati ng wi ll generally be due for review at the end of the Val id ity Period . The matt1rity date of the Commercial Paper/CD/STD shall not be after the end of the Val id ity Period. The Commercial Paper/CD/STD wi l l have a maxi m u m maturity of twelve months.

3. notwithstand ing what is stated i n clause (b) above, ICRA reserves the right to review and/or, revise the above rati ng at any .time on the basis of new information or u navai labi Iity of information or such circumstances , wh ich ICRA bel ieves, may have an impact on the aforesaid rating assigned to you.

4. Total borrowi ng under CP/STD and cash cred it to be l imited to sanctioned cash cred it lim its or drawi ng power, wh ichever is lower.

The rating, as aforesaid, however, should not be treated as a recommendation to buy, sel l or hold the Commercial Paper/CD/STD Debt issued by you. The rating is restricted to your Commercial Paper/CD/

I

STD Programme size of Rs: 1200 crore on ly. In case, you propose to enhance the size of the Commercial

Paper/STD Program me, the same would be req uired to be rated afresh. ICRA does not assu me any responsibi l ity on its part, for any l iabi l ity, that may arise conseq uent to your not complying with any el igibi lity criteria, applicable from time to time, for issuance of Com mertial Paper/CD/STD.

You are req uested to furnish a period ic statement (as per enclosed format) of timely payment of al l obl igations on your rated debt program .You are requested to forthwith inform us about any default or de)ay in repayment of interest or princi pal amount of the instrument rated , as above, or any other debt instruments/ borrowing.

You are also req uested to keep us forthwith informed of any other developments which may have a direct or indi rect impact on the debt servicing capabil ity of the company includ ing 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 req uested to inform us immed iately as and when the borrowing l imit for the instrument rated , as above, or as prescri bed by the regu latory authority (ies) is exceeded.

We thank you for your kind cooperation extended duri ng the course of the rating exercise. Should you req uire any clarification, please do not hesitate to get i ri touch with us.

ICRA

We look forward to you r com m u n ication and assure you of our best services. With ki nd regards,

For JCRA Lim ited

Vice President

kaush ikd@icrai nd ia.com

Ekta Banka Senior Analyst

ekta.banka@icraind ia.com

[ · Encl: As above

I