Press Release AVON CONTAINERS PRIVATE LIMITED September 27, 2023 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.50	ACUITE B+ | Reaffirmed | Issuer not co-operating*	-
Bank Loan Ratings	1.00	-	ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	31.50	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 31.50 crore bank facilities of Avon Containers Private Limited. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.

About the Company

­ACPL is a Haryana based company incorporated in 1991 by Mr. Umesh Aggarwal and Mr. Gaurav Aggarwal. The company is primarily engaged in manufacturing of corrugated boxes mainly catering to the automobile, electronic goods company and also solar panels manufacturing companies. The company procures its main raw material i.e. kraft paper from New Zealand and domestic suppliers located in Gujarat and Uttar Pradesh. The company has four manufacturing units located in Haryana with combined installed capacity of 7,000 Metric tonnes per annum.

Non-cooperation by the issuer/borrower:

Acuité has been requesting for critical information from the rated entity. 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 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."

All Covenants

­None

Liquidity Position

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

Outlook

­Not Applicable

Other Factors affecting Rating

­Not Applicable

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	219.71	154.12
PAT	Rs. Cr.	3.27	2.64
PAT Margin	(%)	1.49	1.71
Total Debt/Tangible Net Worth	Times	1.26	1.46
PBDIT/Interest	Times	5.38	4.24

Status of non-cooperation with previous CRA

­None

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.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 29 Jun 2022 Term Loan Long Term 5.94 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 0.17 ACUITE B+ ( Issuer not co-operating*) Letter of Credit Short Term 1.00 ACUITE A4 ( Issuer not co-operating*) Cash Credit Long Term 11.00 ACUITE B+ ( Issuer not co-operating*) Proposed Cash Credit Long Term 5.04 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 8.35 ACUITE B+ ( Issuer not co-operating*) 31 Mar 2021 Letter of Credit Short Term 1.00 ACUITE A4 (Downgraded and Issuer not co-operating*) Term Loan Long Term 8.35 ACUITE B+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 11.00 ACUITE B+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 0.17 ACUITE B+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 5.94 ACUITE B+ (Downgraded and Issuer not co-operating*) Proposed Cash Credit Long Term 5.04 ACUITE B+ (Downgraded and Issuer not co-operating*)

­

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 11.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Union Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 5.04 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Union Bank of India Not Applicable Term Loan Not available Not available Not available 0.17 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Union Bank of India Not Applicable Term Loan Not available Not available Not available 5.94 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Union Bank of India Not Applicable Term Loan Not available Not available Not available 8.35 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

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 Mob: +91 8069217456 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.