Press Release DAIRYFLEX PACKAGING SOLUTIONS PRIVATE LIMITED September 28, 2023 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	29.50	ACUITE B+ | Reaffirmed | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	29.50	-	-

Rating Rationale

­Acuité has reaffirmed a long term rating of ‘ACUITE B+’ (read as ACUITE B plus) to the Rs 29.50 crore bank facilities of Dairyflex Packaging Solutions Private Limited (DPSPL). The rating is now flagged as “Issuer Not Cooperating” based on account of information risk. Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings; but, despite multiple requests, the management has remained non-cooperative in providing any information. However, the banker has provided their feedback that the conduct of the account is satisfactory.

About the Company

­Based in Jharkhand, DFY 2020. The company is promoted by Mr. Amit Agarwal, Mr. Ajay Kumar Agarwal, Mr. Pratik Shanker Dayal and Mr. Pratyush Shanker Dayal. The company is engaged in the production of printed sacks, rice bags, ice-cream cups, dahi cups, paneer pouch, WMP bag, SMP bag, laminates and sweet boxes.

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 Sensitivities

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

All Covenants

­Not Applicable

Liquidity Position

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

Outlook

None

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Provisional)	FY 21 (Actual)
Operating Income	Rs. Cr.	2.70	0.00
PAT	Rs. Cr.	0.36	0.00
PAT Margin	(%)	13.33	0.00
Total Debt/Tangible Net Worth	Times	2.36	0.00
PBDIT/Interest	Times	5.18	0.00

Status of non-cooperation with previous CRA

CRISIL vide its press release dated 30th May 2023, had rated the company to CRISIL B/Stable; Issuer Not Cooperating.

Any other information

Acuite is yet to recieve the latest No Default Statement from the rated entity despite repeated requests and followups.

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 20 Jul 2022 Cash Credit Long Term 6.00 ACUITE B+ | Stable (Assigned) Proposed Bank Facility Long Term 1.25 ACUITE B+ | Stable (Assigned) Term Loan Long Term 22.25 ACUITE B+ | Stable (Assigned)

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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 UCO Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 1.25 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* UCO Bank Not Applicable Term Loan Not available Not available Not available 22.25 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 Dipti Choudhary Analyst - Rating Operations Tel: 022-49294065 dipti.choudhary@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.