Press Release February 18, 2025 ARADHYA CHEMICALS AND FERTILIZERS Rating Reaffirmed, Withdrawn & Issuer Not Cooperating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.26	ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	2.34	Not Applicable | Withdrawn	-
Bank Loan Ratings	0.40	-	ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding	0.00	-	-
Total Withdrawn	8.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has reaffirmed & withdrawn long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 5.26 crore bank facilities of Aradhya Chemicals and Fertilizers (ACF). ­Acuité has also reaffirmed short term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs. 0.40 crore bank facilities of Aradhya Chemicals and Fertilizers (ACF). Acuité has withdrawn its long-term proposed limit on the Rs. 2.34 crore bank facilities of Aradhya Chemicals and Fertilizers (ACF) without assigning any rating. The rating is now flagged as an ‘Issuer Not-Cooperating’ based on non-cooperation with the necessary clarification on penal charges latest penalty is reflecting in December 2024. The rating withdrawal is in accordance with Acuite’s policy on withdrawal of rating as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the Company and No Objection Certificate received from the banker.

About the Company

­Established in 2010, Aradhya Chemicals and Fertilizers (ACF) is engaged in manufacturing of NKP fertilizers. The product line includes NPK fertilizers 17:17:17, 20:20:0, 14:06:21 and CMS fertilizers 10:05:05. The day to day operations are managed by its Partners, Mr. I S Prasanna, Mr. I P Prasheel Aradhya, Mr. I P Prajwal Aradhya and Mr. Mallappa S Angadi. The manufacturing unit is located at Mallashettihalli in Davangere (Karnataka) with installed capacity of 10 tonnes per hour.

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 & reviewof 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 an 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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivities

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

Liquidity Position

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

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.	7.37	19.84
PAT	Rs. Cr.	0.16	0.77
PAT Margin	(%)	2.18	3.86
Total Debt/Tangible Net Worth	Times	2.34	1.54
PBDIT/Interest	Times	2.13	2.24

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.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 05 Jan 2024 Bank Guarantee (BLR) Short Term 0.40 ACUITE A4 (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.34 ACUITE B+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.04 ACUITE B+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.55 ACUITE B+ | Stable (Reaffirmed) Cash Credit Long Term 3.50 ACUITE B+ | Stable (Reaffirmed) Term Loan Long Term 0.17 ACUITE B+ | Stable (Reaffirmed) 10 Oct 2022 Bank Guarantee (BLR) Short Term 0.40 ACUITE A4 (Reaffirmed) Cash Credit Long Term 3.50 ACUITE B+ | Stable (Upgraded from ACUITE B) Term Loan Long Term 0.17 ACUITE B+ | Stable (Upgraded from ACUITE B) Proposed Long Term Bank Facility Long Term 2.34 ACUITE B+ | Stable (Upgraded from ACUITE B) Working Capital Term Loan Long Term 1.04 ACUITE B+ | Stable (Upgraded from ACUITE B) Working Capital Term Loan Long Term 0.55 ACUITE B+ | Stable (Upgraded from ACUITE B) 22 Sep 2022 Bank Guarantee (BLR) Short Term 0.40 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 3.50 ACUITE B (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.17 ACUITE B (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 3.93 ACUITE B (Reaffirmed & Issuer not co-operating*)

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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. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.40 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating* Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.34 Simple Not Applicable|Withdrawn Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 18 May 2028 0.17 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating* Canara Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 16 Jul 2024 1.04 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating* Canara Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 23 Nov 2026 0.55 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating*

* The issuer did not co-operate; based on best available information.

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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.