Press Release July 15, 2024 INDOLINE INDUSTRIES PRIVATE LIMITED Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	17.00	ACUITE B | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	8.00	-	ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding	25.00	-	-

Rating Rationale

­Acuité has downgraded long-term ratings to 'ACUITE B' (read as ACUITE B) from 'ACUITE B+' (read as ACUITE B plus) and reaffirmed the short-term ratings to 'ACUITE A4' (read as ACUITE A four) on the Rs. 25.00 Crore bank facilities of Indoline Industries Private Limited. The rating is now flagged as “Issuer Not-Cooperating” and is based on the best information available. The downgrade is on account of information risk.

About the Company

­Maharashtra-based, IIPL was incorporated in 1987. The company is engaged in manufacturing of all types of wooden furniture including modular kitchens, wardrobes, bedroom furniture, hotel and household furniture. The company also offers various finishes like Laminate, Acrylic, UV Lacquer, PU Lacquer, PVC Membrane, Veneer, Solid Wood and Back Painted Glass etc. The company is promoted by Mr. Husain Sultan Ali Nensey, Mr. Saif Husain Nensey, Mrs. Nissa Husain Nensey and Mr. Adnan Latif Nensey. The manufacturing facilities are located at Ambad, Nashik and Dindori.

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. Acuité believes that information risk is a critical component in such ratings, and non - cooperation 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 Acuité to comment upon.

Liquidity Position

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

Outlook

­Not Applicable.

Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	88.38	74.88
PAT	Rs. Cr.	(5.08)	(0.01)
PAT Margin	(%)	(5.75)	(0.01)
Total Debt/Tangible Net Worth	Times	7.28	2.27
PBDIT/Interest	Times	(1.10)	2.55

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 • 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 25 Apr 2023 Letter of Credit Short Term 6.00 ACUITE A4 (Reaffirmed) Bills Discounting Short Term 2.00 ACUITE A4 (Reaffirmed) Proposed Long Term Bank Facility Long Term 6.22 ACUITE B+ | Stable (Reaffirmed) Cash Credit Long Term 8.00 ACUITE B+ | Stable (Reaffirmed) Term Loan Long Term 1.07 ACUITE B+ | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.21 ACUITE B+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.86 ACUITE B+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.64 ACUITE B+ | Stable (Reaffirmed) 25 Feb 2022 Term Loan Long Term 0.16 ACUITE B+ (Withdrawn) Proposed Long Term Bank Facility Long Term 12.59 ACUITE B+ | Stable (Reaffirmed) Bills Discounting Short Term 2.00 ACUITE A4 (Reaffirmed) Cash Credit Long Term 3.00 ACUITE B+ | Stable (Reaffirmed) Letter of Credit Short Term 3.25 ACUITE A4 (Reaffirmed) Working Capital Term Loan Long Term 1.11 ACUITE B+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.64 ACUITE B+ | Stable (Reaffirmed) Term Loan Long Term 1.69 ACUITE B+ | Stable (Reaffirmed) Term Loan Long Term 0.12 ACUITE B+ | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.60 ACUITE B+ | Stable (Reaffirmed)

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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 avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Indian Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.22 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Indian Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.07 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Indian Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.21 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Indian Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.86 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Indian Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.64 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Kartik Arora Analyst - Rating Operations Tel: 022-49294065 kartik.arora@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.