Press Release December 03, 2024 S R S EXPORTS PRIVATE LIMITED Rating Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.00	ACUITE B+ | Reaffirmed & Withdrawn	-
Bank Loan Ratings	45.00	-	ACUITE A4 | Reaffirmed & Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	50.00	-	-

Rating Rationale

­Acuité has reaffirmed and withdrawn the long term of 'ACUITE B+’ (read as ACUITE B plus) and the short term rating of 'ACUITE A4’ (read as ACUITE A four) on the Rs. 50.00 crore bank facilities of S R S Exports Private Limited (SEPL).  The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NOC(No Objection Certificate) received from the banker. Rationale for the Rating The rating continues to derive comfort from long track record of ­long track record of operation and experience of the management along with average financial risk profile; however these above strengths are constrained by working capital intensive nature of operations.

About the Company

­Incorporated in 1995, S R S Exports Private Limited (SRSEPL) a Punjab based company is currently managed by by Mr. Sandeep Mohan,Mrs. Shivani Mohan and Mr. Virender Kumar Upadhyay. The company is engaged in export-import of agro based commodities such as yellow peas, wheat, lentils, rice, other pulses and sugar.

Unsupported Rating

­­Not Applicable

Analytical Approach

­­­Acuité has considered the standalone business and financial risk profiles of SEPL to arrive at the rating.

Key Rating Drivers

Strengths

­Long track record of operation and experience of the management SEPL was incorporated in 1995 by Mr. Shadiram Mohan who has more than two decades of experience in the agro commodity industry and has other group companies engaged in similar line of business. The company has established healthy relations with its customers and suppliers over the years, which help it to get repeat business. Average financial risk profile The financial risk profile of the company remained average marked by improving net worth, high gearing and robust debt protection metrics. The net worth of the company stood improved at Rs.18.64 Cr. as on FY2024 as compared to Rs.12.76 Cr. as on FY2023. The gearing (debt-equity) stood high at 0.24 times as on FY2024. The interest coverage ratio and DSCR stood robust at 13.65 times and 10.16 times respectively for FY2024 as against 1.92 times and 1.68 times respectively for FY2023. Acuité believes that the financial risk profile of SEPL is however expected to remain moderate over the medium term.

Weaknesses

­Working Capital Intensive nature of operations The working capital management of the company remained intensive marked by high Gross Current Assets (GCA) of 266 days for FY2024 as compared to 377 days as on FY2023. The debtor period stood at 132 days for FY2024. Further, the inventory holding stood at 132 days for FY2024 as against 316 days for FY2023. The payment cycle varies from 15-30 days. The working capital cycle of the Company is expected to remain at similar levels over the medium term.

Rating Sensitivities

­Not Applicable

Liquidity Position

Adequate

­The company has an adequate liquidity profile as reflected from its high GCA days of 266 days in FY2024 due to high debtor and inventory days and net cash accruals of Rs 6.00 Cr. as on FY2024 as against no long term debt over the same period. Current ratio stood modest at 1.05 times in FY2024. Acuité believes liquidity profile will continue to remain stretched in the medium term due to high working capital requirement.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	429.15	122.24
PAT	Rs. Cr.	5.81	0.41
PAT Margin	(%)	1.35	0.33
Total Debt/Tangible Net Worth	Times	0.24	0.31
PBDIT/Interest	Times	13.65	1.92

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 02 Apr 2024 Letter of Credit Short Term 30.00 ACUITE A4 (Reaffirmed) Letter of Credit Short Term 15.00 ACUITE A4 (Assigned) Cash Credit Long Term 5.00 ACUITE B+ | Stable (Assigned) 26 Oct 2023 Letter of Credit Short Term 30.00 ACUITE A4 (Reaffirmed) 10 Aug 2022 Letter of Credit Short Term 30.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) 01 Jun 2021 Letter of Credit Short Term 30.00 ACUITE A4 (Reaffirmed)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE B+ | Reaffirmed & Withdrawn Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE A4 | Reaffirmed & Withdrawn

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Contacts

Mohit Jain Senior Vice President - Rating Operations Abhishek Singh Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & 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. Acuité has assigned 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. Ratings assigned by Acuité 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. Ratings assigned by Acuité 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.