Press Release

Press Release

July 05, 2024

ATTHARV SAI FLEXIPACK PRIVATE LIMITED
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	62.00	ACUITE C \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	30.00	-	ACUITE A4 \| Downgraded \| Issuer not co-operating*
Total Outstanding	92.00	-	-

Rating Rationale

Acuité has downgraded the long-term rating to 'ACUITE C' (read as ACUITE C) from ‘ACUITE BB+’ (read as ACUITE Double B plus) and short-term rating of ‘ACUITE A4’ (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A Four Plus) on the Rs.92 Cr. bank facilities of Attharv Sai Flexipack Private Limited (ASFPL). This rating is now flagged as "Issuer not cooperating" and is based on best available information.
The downgrade is based on recent delays in debt servicing being reflected in the Credit Information bureau report and other publicly available information. The company has not provided latest NDS for last 3 months consecutively.

About the Company

Attharv Sai Flexipack private limited(ASFPL) is incorporated in 2013 by Mr. Ashwin Kumar Hemdev and Mrs. Renu N Chugh engaged in manufacturing of flexible packaging used primarily by FMCG, pharma companies, agriculture for industrial application and packing materials. Company’s manufacturing facility is located at Mandya, Mysore. ASFPL customers includes reputed FMCG plays like ITC, Britannia.

Unsupported Rating

Not Applicable

Non-cooperation by the issuer/borrower

Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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 rating is based.

Rating Sensitivities

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

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	136.94	85.94
PAT	Rs. Cr.	2.51	1.10
PAT Margin	(%)	1.83	1.28
Total Debt/Tangible Net Worth	Times	2.98	4.74
PBDIT/Interest	Times	2.67	2.76

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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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	Term Loan	Long Term	15.12	ACUITE BB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	11.00	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	4.58	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	4.12	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	12.00	ACUITE BB+ \| Stable (Assigned)
	Term Loan	Long Term	2.00	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	8.25	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	3.25	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1.68	ACUITE BB+ \| Stable (Reaffirmed)
	Letter of Credit	Short Term	30.00	ACUITE A4+ (Reaffirmed)
23 Jun 2023	Term Loan	Long Term	26.98	ACUITE BB+ \| Stable (Assigned)
	Cash Credit	Long Term	11.00	ACUITE BB+ \| Stable (Assigned)
	Term Loan	Long Term	7.90	ACUITE BB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	4.12	ACUITE BB+ \| Stable (Assigned)
	Letter of Credit	Short Term	30.00	ACUITE A4+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.00	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Bank of Baroda	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE A4 \| Downgraded \| Issuer not co-operating* ( from ACUITE A4+ )
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.25	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.68	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.12	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	20 Jan 2028	15.12	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Small Industries Development Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	15 Apr 2025	4.58	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Small Industries Development Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	10 Feb 2028	2.00	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	22 Oct 2026	8.25	Simple	ACUITE C \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Sahil Sawant Associate Analyst - Rating Operations Tel: 022-49294065 sahil.sawant@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.