Press Release December 11, 2025 HEM AGENCIES MUMBAI Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.16	ACUITE C | Downgraded	-
Bank Loan Ratings	38.34	ACUITE D | Downgraded	-
Total Outstanding	43.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB-’ (read as ACUITE Double B minus) on the Rs. 38.34 Cr. bank facilities of Hem Agencies Mumbai (HAM). Acuité has also downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB-’ (read as ACUITE Double B minus) on proposed long term bank facilities of Rs. 5.16 Cr. of Hem Agencies Mumbai (HAM). Rationale of Rating Downgrade The downgrade is on account of delays in servicing of debt obligations by Hem Agencies Mumbai (HAM) as confirmed by its banker through a written communication along with reported delays in debt servicing as reflected in term loan account statements of the firm.

About the Company

­Incorporated In 2018, Mumbai, Maharashtra based Hem Agencies Mumbai (HAM) is a partnership firm. The firm is engaged in trading and servicing of two-wheeler vehicles and is an authorised dealer of Honda two-wheelers. Mr. Bipin Kantilal Shah, Mr. Hemant Kantilal Shah, Mr. Ishan Bipin Shah and Mr. Ashank Hemant Shah are partners in the firm.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of Hem Agencies Mumbai (HAM).

Key Rating Drivers

Strengths

­Established track record of operation and experienced management Hem Agencies Mumbai (HAM) is a part of the HEM Group, which was founded in 1912. HEM group has acquired various dealerships over the years including TVS motors co., Tata motors, etc. Mr. Bipin Kantilal Shah and Mr. Hemant Kantilal Shah started with the automobiles business in 1983 with TVS motors Co. and further expanded with several esteemed brands. HAM has the authorised dealership of Honda two-wheelers. and is managed by Mr. Bipin Kantilal Shah, Mr. Hemant Kantilal Shah, Mr. Ishan Bipin Shah and Mr. Ashank Hemant Shah.

Weaknesses

­Instance of delay and irregularities account conduct There are instances of delays in debt-servicing on term loan obligation by the firm have been reported in the month of August, September , October and November 2025 as per the term loan account statements of the firm and written communication from the lender.

Rating Sensitivities

Timely servicing of debt obligations

Liquidity Position

Poor

The liquidity position of the firm is marked poor on account of instance of delay in servicing of term loan obligation as per term loan statements and banker's written feedback.

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Provisional)	FY 23 (Actual)
Operating Income	Rs. Cr.	72.66	125.90
PAT	Rs. Cr.	0.62	1.32
PAT Margin	(%)	0.86	1.05
Total Debt/Tangible Net Worth	Times	1.98	2.59
PBDIT/Interest	Times	1.44	1.59

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable­

Any other information

­None­

Applicable Criteria

• 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 • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 Oct 2024 Cash Credit Long Term 33.50 ACUITE BB- | Stable (Assigned) Term Loan Long Term 0.96 ACUITE BB- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 5.16 ACUITE BB- | Stable (Assigned) Term Loan Long Term 3.88 ACUITE BB- | 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 Abhyudaya Cooperative Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 33.50 Simple ACUITE D | Downgraded ( 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. 5.16 Simple ACUITE C | Downgraded ( from ACUITE BB- ) Abhyudaya Cooperative Bank Not avl. / Not appl. Term Loan 18 Aug 2021 Not avl. / Not appl. 17 Aug 2028 3.88 Simple ACUITE D | Downgraded ( from ACUITE BB- ) Abhyudaya Cooperative Bank Not avl. / Not appl. Term Loan 18 Aug 2021 Not avl. / Not appl. 17 Aug 2025 0.96 Simple ACUITE D | Downgraded ( from ACUITE BB- )

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani 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.