Press Release HITAISHI KK MANUFACTURING COMPANY PRIVATE LIMITED November 30, 2022 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	26.00	-	ACUITE D | Reaffirmed | Issuer not co-operating*
Bank Loan Ratings	7.00	ACUITE D | Reaffirmed | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	33.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has reaffirmed the long term rating to ‘ACUITE D’ (read as ACUITE D) and short term rating to 'ACUITE D'(read as ACUITE D) onthe Rs. 33.00 crore bank facilities of Hitaishi KK Manufacturing Company Private Limited. The rating is now flagged as “Issuer Not- Cooperating”, and based on the best available information.

About the Company

­Hitaishi KK Manufacturing was formed in 1974 as a partnership firm by Mr. Om Prakash Prahladka. Later in 2010, it was converted into a private limited company. The company manufactures and exports musical instruments and handicrafts made out of wood, jute, horn, etc. with its manufacturing facility located in Kolkata. The company procures its raw material locally.The company sells around 95 per cent in the export market to countries such as Dubai, Japan, USA and Europe and the balance is sold in the domestic market.

Non-cooperation by the issuer/borrower

­Acuité has been requesting for data, information and undertakings from the rated entity forconducting surveillance & review of the rating. However, the issuer/borrower failed to submitsuch informationbeforethe duedate. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with un willingness toprovide information could be a sign of potential deterioration in its overall credit quality. This rating continues to be 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."

Material Covenants

­None

Liquidity Position

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

Outlook

­Not Applicable

Key Financials

Particulars	Unit	FY 21 (Provisional)	FY 20 (Actual)
Operating Income	Rs. Cr.	33.80	38.98
PAT	Rs. Cr.	0.05	0.13
PAT Margin	(%)	0.15	0.34
Total Debt/Tangible Net Worth	Times	1.43	1.34
PBDIT/Interest	Times	1.17	1.28

Status of non-cooperation with previous CRA

­None

Any other information

Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups

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 01 Sep 2021 Bills Discounting Short Term 11.00 ACUITE D (Downgraded from ACUITE A4+) Term Loan Long Term 2.00 ACUITE D (Downgraded from ACUITE BB- | Stable) Cash Credit Long Term 4.00 ACUITE D (Downgraded from ACUITE BB- | Stable) Packing Credit Short Term 11.50 ACUITE D (Downgraded from ACUITE A4+) Letter of Credit Short Term 2.50 ACUITE D (Downgraded from ACUITE A4+) Bank Guarantee Short Term 1.00 ACUITE D (Downgraded from ACUITE A4+) Proposed Long Term Loan Long Term 1.00 ACUITE D (Downgraded from ACUITE BB- | Stable) 04 Nov 2019 Bills Discounting Short Term 11.00 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 4.00 ACUITE BB- | Stable (Reaffirmed) Term Loan Long Term 2.00 ACUITE BB- | Stable (Assigned) Packing Credit Short Term 11.50 ACUITE A4+ (Reaffirmed) Proposed Long Term Loan Long Term 1.00 ACUITE BB- | Stable (Reaffirmed) Letter of Credit Short Term 2.50 ACUITE A4+ (Reaffirmed) Bank Guarantee Short Term 1.00 ACUITE A4+ (Assigned) 14 May 2019 Letter of Credit Short Term 2.50 ACUITE A4+ (Issuer not co-operating*) Bills Discounting Short Term 11.00 ACUITE A4+ (Issuer not co-operating*) Proposed Long Term Loan Long Term 4.00 ACUITE BB- (Issuer not co-operating*) Packing Credit Short Term 14.50 ACUITE A4+ (Issuer not co-operating*) Cash Credit Long Term 1.00 ACUITE BB- (Issuer not co-operating*)

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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 Indian Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 11.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 4.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 2.50 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 11.50 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable Term Loan Not available 11.30 Dec 31 2023 2.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

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Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Dey Senior Analyst-Rating Operations Tel: 022-49294065 abhishek.dey@acuite.in	Varsha Bist Senior Manager-Rating Operations 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.