Press Release July 22, 2024 ADITYA AUTOMOBILE SPARES PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	14.50	ACUITE C | Downgraded | Issuer not co-operating*	-
Total Outstanding	14.50	-	-

Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 14.50 crore bank facilities of Aditya Automobile Spares Private Limited. The rating continues to be flagged as “Issuer NotCooperating” and is based on the best available information. The downgrade is based on CRIF Highmark Report which shows ongoing delays.

About the Company

­The Tamil Nadu based, Aditya Automobile Spares Private Limited, incorporated in 2001, is promoted by Mr. P. Selvakumar and his wife, Mrs. S Karthika. AAPL is engaged into trading of two-wheeler automobile spares and accessories of various OEMs. It has 6 stores across Tamil Nadu.

About the Group

Rajkrishna Aditya Auto Store Private Limited (RAPL) was incorporated in 1994. The company is an authorised dealer for the spares and accessories of Maruti Suzuki India Limited (MSIL). The company has 19 distribution centers across Chennai, Madurai, Trichy, and Coimbatore, among others in Tamil Nadu and Pondicherry. The directors of the company are Mr. Maheswaran and Mr. Vishal Kumar Ponnusamy Maheswaran.

Unsupported Rating

­Not Applicable

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 the due date. Acuité believes that information risk is a critical component in such ratings, and non-cooperation 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 rating is based.

Rating Sensitivity

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

Liquidity Position

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

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	121.62	116.17
PAT	Rs. Cr.	1.77	1.51
PAT Margin	(%)	1.46	1.30
Total Debt/Tangible Net Worth	Times	1.48	1.64
PBDIT/Interest	Times	2.29	2.06

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm • 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

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 18 Jan 2024 Secured Overdraft Long Term 14.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*) 04 Nov 2022 Secured Overdraft Long Term 14.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*) 11 Aug 2021 Term Loan Long Term 0.50 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Secured Overdraft Long Term 14.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)

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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 Canara Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No. Company Name 1 Aditya Automobile Spares Private Limited 2 Rajkrishna Aditya Auto Store Private Limited

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Abhishek Singh Analyst - Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@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.