Press Release December 28, 2023 ESDS SOFTWARE SOLUTION LIMITED (ERSTWHILE ESDS SOFTWARE SOLUTION PRIVATE LIMITED) Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	56.25	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	25.75	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding	82.00	-	-

Rating Rationale

­The issuer did not co-operate within stipulated timelines ; Based on best available information. Acuité has downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs.56.25 Cr. long term bank facilities and short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from ACUITE A2 (read as ACUITE A two) on the Rs. 25.75 Cr. short-term bank facilities of ESDS SOFTWARE SOLUTION PRIVATE LIMITED (ESDS). The rating is flagged as "Issuer not corporating' and is downgraded on account of information risk.

About the Company

­Nashik-based, ESDS Software Solution Private limited (ESDS) was incorporated in 2005 by Mr. Piyush Somani. The company is engaged in the business of providing IT services and software solutions such as web hosting services, data centre services, website development, and software development, among others. Company has its fully integrated data centres located in Nashik, Mumbai, and Bangalore.

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 due date. 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 ratingis 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: Not Applicable

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Other Factors affecting Rating

­Not Applicable.

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	201.87	194.82
PAT	Rs. Cr.	(15.03)	2.11
PAT Margin	(%)	(7.45)	1.08
Total Debt/Tangible Net Worth	Times	0.90	0.90
PBDIT/Interest	Times	2.13	3.67

Status of non-cooperation with previous CRA

­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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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 10 Oct 2022 Term Loan Long Term 17.08 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 4.17 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 1.55 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Bank Guarantee Short Term 13.75 ACUITE A2 (Upgraded from ACUITE A4+) Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 1.38 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 4.70 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Bank Guarantee Short Term 12.00 ACUITE A2 (Upgraded from ACUITE A4+) Term Loan Long Term 3.79 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Working Capital Term Loan Long Term 2.62 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) Proposed Cash Credit Long Term 0.96 ACUITE BBB+ | Stable (Upgraded from ACUITE BB+) 12 Jul 2022 Term Loan Long Term 1.18 ACUITE BB+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 2.40 ACUITE BB+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 9.77 ACUITE BB+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 7.64 ACUITE BB+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 10.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Proposed Cash Credit Long Term 15.26 ACUITE BB+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 5.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 12.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 5.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 13.75 ACUITE A4+ (Downgraded and Issuer not co-operating*) 16 Dec 2020 Cash Credit Long Term 10.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 1.18 ACUITE A- | Stable (Assigned) Bank Guarantee Short Term 13.75 ACUITE A1 (Assigned) Cash Credit Long Term 10.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 2.40 ACUITE A- | Stable (Assigned) Term Loan Long Term 9.77 ACUITE A- | Stable (Assigned) Term Loan Long Term 7.64 ACUITE A- | Stable (Assigned) Proposed Cash Credit Long Term 15.26 ACUITE A- | Stable (Assigned) Bank Guarantee Short Term 12.00 ACUITE A1 (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 State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 13.75 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 ) Axis Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 ) State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 0.96 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Term Loan Not available Not available Not available 4.17 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Term Loan Not available Not available Not available 1.55 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Term Loan Not available Not available Not available 17.08 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Term Loan Not available Not available 30 Apr 2024 3.79 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) State Bank of India Not Applicable Term Loan Not available Not available Not available 4.70 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) State Bank of India Not Applicable Term Loan Not available Not available Not available 1.38 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ ) Axis Bank Not Applicable Working Capital Term Loan Not available Not available Not available 2.62 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Jaitashree Hukerikar Analyst - Rating Operations Tel: 022-49294065 jaitashree.hukerikar@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.