Press Release November 15, 2024 KESHARI INTERNATIONAL LLP Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2.67	ACUITE C | Downgraded	-
Bank Loan Ratings	44.38	ACUITE D | Downgraded	-
Total Outstanding	47.05	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 44.38 Cr. bank facilities of Keshari International LLP. Further, Acuité has also downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 2.67 Cr. proposed bank facilities of Keshari International LLP. Rationale for downgrade The downgrade is due to delay in servicing of interest obligation on term loan facilities by the firm in the recent past.

About the Company

­Keshari International LLP is an Assam-based limited liability partnership firm established in July 2018, and is engaged in the manufacturing plastic moulded furniture and household items. It commenced its commercial operations in June 2021 and its product line includes three brands catering to different customer segments:  it caters economical class through its brand ‘Welcome National’ , middle class through its brand ‘Marco’ and high-end customers through  ‘Miracle’. The partners include Mr. Pawan Kumar Soni, Ms. Sarita Soni, Mr. Abhiman Kumar Agarwal and Mr. Keshav Mittal.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuité has considered the standalone business & financial risk profiles of Keshari International LLP to arrive at the ratings.

Key Rating Drivers

Strengths

­Established experience of partners for over two decades in the industry The key partner, Mr. Pawan Kumar Soni, has over two decades of experience in the plastic industry, that shall support the business going forward. Acuité believes that the extensive experience of the partners will continue to benefit the firm going forward, resulting in steady growth in the scale of operations.

Weaknesses

­Instance of delay in servicing of debt obligation Instance of delay in servicing of interest on term loan obligation by the company in the recent past is observed in its loan account statement.

Rating Sensitivities

Timely servicing of debt obligations

Liquidity Position

Poor

­Liquidity for the firm is marked poor due to delays in servicing of interest obligation on term loan facilities by the firm in recent past.

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.	31.13	19.02
PAT	Rs. Cr.	0.45	0.08
PAT Margin	(%)	1.45	0.43
Total Debt/Tangible Net Worth	Times	3.08	2.35
PBDIT/Interest	Times	1.48	1.70

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 30 Apr 2024 Proposed Long Term Bank Facility Long Term 2.67 ACUITE BB- | Stable (Reaffirmed) Term Loan Long Term 19.90 ACUITE BB- | Stable (Reaffirmed) Cash Credit Long Term 12.00 ACUITE BB- | Stable (Reaffirmed) Term Loan Long Term 5.36 ACUITE BB- | Stable (Reaffirmed) Term Loan Long Term 5.51 ACUITE BB- | Stable (Reaffirmed) Term Loan Long Term 1.61 ACUITE BB- | Stable (Reaffirmed) 13 Feb 2023 Term Loan Long Term 35.05 ACUITE BB- | Stable (Assigned) Cash Credit Long Term 12.00 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 Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 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. 2.67 Simple ACUITE C | Downgraded ( from ACUITE BB- ) Indian Bank Not avl. / Not appl. Term Loan 28 Dec 2022 Not avl. / Not appl. 30 Sep 2031 19.90 Simple ACUITE D | Downgraded ( from ACUITE BB- ) Indian Bank Not avl. / Not appl. Term Loan 28 Dec 2022 Not avl. / Not appl. 30 Nov 2026 5.36 Simple ACUITE D | Downgraded ( from ACUITE BB- ) Indian Bank Not avl. / Not appl. Term Loan 28 Dec 2022 Not avl. / Not appl. 30 Sep 2031 5.51 Simple ACUITE D | Downgraded ( from ACUITE BB- ) Indian Bank Not avl. / Not appl. Term Loan 28 Dec 2022 Not avl. / Not appl. 30 Sep 2031 1.61 Simple ACUITE D | Downgraded ( from ACUITE BB- )

Contacts

Mohit Jain Senior Vice President - Rating Operations Kruti Patel Associate 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.