Press Release May 07, 2025 ELEC STEEL PROCESSING INDUSTRIES PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	44.13	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	20.75	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding	64.88	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) and the short-term rating to 'ACUITE A4+' (read as ACUITE A four Plus) from 'ACUITE A3' (read as ACUITE A Three) on Rs. 64.88 crore bank facilities of Elec Steel Processing Industries Private Limited (ESPIPL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The rating is downgraded on account of information risk.

About the Company

­ESPIPL is engaged into manufacturing of transformer laminations made from grain oriented electrical steels (iron-silicon alloys) which provides low core loss and high permeability needed for electrical transformers. ­ESPIPL also manufactures toroidal cores for metering transformers. The company imports cold-rolled grain oriented silicon steel (CRGO) and cold-rolled non-grain oriented silicon steel (CRNGO) sheets.  ­ESPIPL, got converted into a private limited company in September 2022; named “Elec Steel Processing Industries Private Limited ”. The company has 4 operational plants situated in Vadodara, Gujarat. Out of which, 2 plants situated in GIDC Vadodara, would be shifted to the new location at Vadodara itself; in the ongoing debt funded capex to enhance the production capacity and reduce the turnaround time. One of the four plants is exclusively set up to cater to the requirements of Hitachi Energy India Ltd. The plants situated in GIDC which are to be relocated, would be used as warehouses after completion of capex. ­ESPIPL is currently promoted by Mr. Harshad Bagadia & Mr. Paras Bagadia.

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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. 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

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	140.16	91.88
PAT	Rs. Cr.	5.47	1.32
PAT Margin	(%)	3.90	1.44
Total Debt/Tangible Net Worth	Times	1.19	1.46
PBDIT/Interest	Times	4.54	2.69

Status of non-cooperation with previous CRA

­Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

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 15 Feb 2024 Letter of Credit Short Term 20.00 ACUITE A3 (Assigned) Proposed Short Term Loan Short Term 0.75 ACUITE A3 (Assigned) Covid Emergency Line. Long Term 0.91 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 25.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 14.44 ACUITE BBB- | Stable (Assigned) Proposed Term Loan Long Term 0.94 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 2.04 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 0.30 ACUITE BBB- | Stable (Assigned) Covid Emergency Line. Long Term 0.50 ACUITE BBB- | 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 Bank of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2024 0.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2026 0.91 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) Not Applicable Not avl. / Not appl. Proposed Short Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.75 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.94 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 28 May 2028 2.04 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Oct 2027 0.30 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Bank of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Oct 2030 14.44 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )

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

Contacts

Mohit Jain Senior Vice President - Rating Operations Amay Gupta 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.