Press Release PAN AGRI EXPORT April 07, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.80	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Bank Loan Ratings	39.20	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	65.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE BB+' (read as ACUITE Double B plus) from ‘ACUI TE BBB+’ (read as ACUITE triple B plus) and the short-term rating to 'ACUITE A4+' (read as ACUITE A Four plus) from ‘ACUITE A2’ (read as ACUITE A two) on the Rs.65.00 crore bank facilities of Pan Agri Exports (PAE). This rating is now an indicative rating and is based on best available information.

About the Company

­Set up in 1982, Gujarat based Pan Agri Exports (PAE) is a partnership firm engaged into ginning & pressing of raw cotton and manufacturing cottonseed oil. The partners are Mr. Mansukhbhai Patel, Mrs. Ila Arvindbhai Patel, Mr. Arvindbhai Patel, Mr. Chiragbhai Patel and Mr. Alpeshbhai Patel. The firm is a part of the Pan group, which has diversified business interest across cement, laminate manufacturing, agriculture equipment and agro-commodities trading, health sector.

Non-cooperation by the issuer/borrower

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratingis based.

Rating Sensitivities

­No information provided by the issuer / available for Acuite to comment upon.

Material Covenants

­None

Liquidity Indicators

­No information provided by the issuer / available for Acuite to comment upon.

Outlook

­Not Applicable

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

Status of non-cooperation with previous CRA

­None

Any other information

None

Applicable Criteria

• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Rating History

Date Name of Istruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 12 Jan 2021 Working Capital Demand Loan Long Term 3.20 ACUITE BBB+ | Stable (Reaffirmed) Proposed Bank Facility Short Term 25.80 ACUITE A2 (Reaffirmed) Cash Credit Long Term 36.00 ACUITE BBB+ | Stable (Reaffirmed) 22 Oct 2019 Cash Credit Long Term 40.00 ACUITE BBB+ | Stable (Assigned) Proposed Bank Facility Short Term 25.00 ACUITE A2 (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Rating State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 36.00 ACUITE BB+ | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 25.80 ACUITE A4+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Working Capital Demand Loan (WCDL) Not available Not available Not available 3.20 ACUITE BB+ | Downgraded | Issuer not co-operating*

About Acuité Ratings & Research

Acuité Ratings & Research Limited is a full-service Credit Rating Agency registered with the Securities and Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms in the year 2012. Since then, it has assigned more than 8,850 credit ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Acuité ratings are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind arising from the use of its ratings. Acuité ratings are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.