Press Release December 18, 2024 BHUVANESWARI COTSPIN INDIA PRIVATE LIMITED Rating Downgraded, Reaffirmed, Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	21.35	ACUITE BB | Downgraded & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	40.00	Not Applicable | Withdrawn	-
Bank Loan Ratings	0.65	-	ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding	0.00	-	-
Total Withdrawn	62.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded and withdrawn its long term rating to ‘ACUITE BB' (read as ACUITE double B) from ‘ACUITE BB+' (read as ACUITE double B plus) on the Rs 21.35 crore bank facilities of Bhuvaneswari Cotspin India Private Limited (BCIPL). ­­ Acuité has reaffirmed and withdrawn its short term rating to ACUITE A4+ ‘(read as ACUITE A four plus) on the Rs 0.65 crore bank facilities of Bhuvaneswari Cotspin India Private Limited (BCIPL). ­­ Further, Acuité has withdrawn its long-term proposed limit on the Rs 40.00 crore bank facilities of Bhuvaneswari Cotspin India Private Limited without assigning any rating as it is a proposed facility. This rating continuous flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The rating has been downgraded 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 The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NOC (No Objection Certificate) received from the banker.

About the Company

­­BCIPL is a Tamil Nadu based private limited company incorporated in 2003. The company is engaged in manufacturing of cotton and blended yarn and fabric. The company is promoted by Mr. Loganathan. The company is also supported by second generation, Mr. Paramesh Kumar and Mr. Subramaniam. BCIPL caters to various segments of the textile industry.

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 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 endeavoured 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.	243.03	358.01
PAT	Rs. Cr.	6.26	7.80
PAT Margin	(%)	2.58	2.18
Total Debt/Tangible Net Worth	Times	0.31	0.77
PBDIT/Interest	Times	5.13	4.72

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

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 20 Sep 2023 Bank Guarantee (BLR) Short Term 0.65 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Cash Credit Long Term 17.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Secured Overdraft Long Term 13.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Proposed Long Term Bank Facility Long Term 4.05 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 3.75 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 11.70 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 4.35 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Working Capital Term Loan Long Term 7.50 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) 13 Jul 2022 Bank Guarantee (BLR) Short Term 0.65 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 17.00 ACUITE BBB | Stable (Reaffirmed) Secured Overdraft Long Term 13.00 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 4.05 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 3.75 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 11.70 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 4.35 ACUITE BBB | Stable (Reaffirmed) Working Capital Term Loan Long Term 7.50 ACUITE BBB | Stable (Reaffirmed) 07 May 2021 Bank Guarantee (BLR) Short Term 0.65 ACUITE A3+ (Upgraded from ACUITE A3) Cash Credit Long Term 17.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Long Term Bank Facility Long Term 4.05 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Secured Overdraft Long Term 13.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 11.70 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 3.75 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 4.35 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Working Capital Term Loan Long Term 7.50 ACUITE BBB | Stable (Assigned) * 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 Karur Vysya Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.65 Simple ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* Karur Vysya Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.00 Simple ACUITE BB | 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. 4.05 Simple Not Applicable|Withdrawn Karnataka Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple Not Applicable|Withdrawn Karnataka Bank Ltd Not avl. / Not appl. Term Loan 01 Jul 2016 Not avl. / Not appl. 30 Jun 2022 3.75 Simple Not Applicable|Withdrawn Karnataka Bank Ltd Not avl. / Not appl. Term Loan 01 Mar 2019 Not avl. / Not appl. 28 Feb 2026 11.70 Simple Not Applicable|Withdrawn Karur Vysya Bank Not avl. / Not appl. Term Loan 01 Sep 2016 Not avl. / Not appl. 31 Aug 2023 4.35 Simple ACUITE BB | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB+ ) Karnataka Bank Ltd Not avl. / Not appl. Working Capital Term Loan 03 Feb 2021 Not avl. / Not appl. 31 May 2024 7.50 Simple Not Applicable|Withdrawn

* 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.