Press Release December 24, 2024 BANASHANKARI CHEMICALS PRIVATE LIMITED Rating Downgraded & Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.40	ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	4.60	Not Applicable | Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	20.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded and withdrawn the long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B Minus) on the Rs. 15.40 crore bank facilities of Banashankari Chemicals Private Limited. ­­Acuite has withdrawn its long-term rating on the Rs. 4.60 Cr. bank facilities of Banashankari Chemicals Private Limited without assigning any rating as it is a proposed facility. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information. The downgraded is on account of information risk. The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the entity, and NOC (No Objection Certificate) received from the banker.

About the Company

­­Banashankari Chemicals Private Limited (hereinafter referred to as BCPL) an ISO 9001: 2015 certified company started as a proprietary concern in the year 2000, later converted into a corporate in 2008. Head quartered at Bangalore, the Company has setup its state of art manufacturing facilities in KIADB Industrial area at Malur. Facility is well equipped for carrying out purification of spent solvents, with specialized process including Simple Distillation, Fractional Distillation, Azeotropic and Vacuum Distillation with production capacity of 20 KL/Day. The founder G. N. Murthy, academically a Chemical Engineer, with his deep insight in the chemistry of hazardous materials, built capabilities, which are augmented by professional team of subject matter experts.

About the Group

­Banashankari Group (BG) includes Banashankari Chemicals Private Limited and Banashankari Industries Private Limited is a family owned business based in Bangalore having presence since 2000. The group is a leading spent solvent recycling in Karnataka and is specialised in the supply of recycled and reclaimed solvents, Toll Recovery of solvents and purchase of used and redundant solvents. The group also carry out purification of spent solvents, with specialized process including Simple Distillation, Fractional Distillation and Vacuum Distillation.

Unsupported Rating

­Not Applicable

Non-cooperation by the issuer/borrower:

­­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.

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 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	54.79	43.30
PAT	Rs. Cr.	3.22	3.08
PAT Margin	(%)	5.89	7.11
Total Debt/Tangible Net Worth	Times	1.06	1.38
PBDIT/Interest	Times	3.88	3.69

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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 Oct 2023 Cash Credit Long Term 3.10 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 10.30 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Working Capital Term Loan Long Term 1.75 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Working Capital Demand Loan (WCDL) Long Term 0.25 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 4.60 ACUITE BB- (Reaffirmed & Issuer not co-operating*) 07 Jul 2022 Cash Credit Long Term 3.10 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Term Loan Long Term 10.30 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Working Capital Term Loan Long Term 1.75 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Working Capital Demand Loan (WCDL) Long Term 0.25 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Proposed Long Term Bank Facility Long Term 4.60 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) * The issuer did not co-operate; based on best available information.

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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. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.10 Simple ACUITE B+ | Downgraded & Withdrawn | 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. 4.60 Simple Not Applicable|Withdrawn Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.30 Simple ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB- ) Canara Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.25 Simple ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB- ) Canara Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.75 Simple ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB- )

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

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

Sr.No Company Name 1. Banashankari Chemicals Private Limited 2. Banashankari Industries Private Limited

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.