Press Release November 26, 2024 MILTON INDUSTRIES LIMITED Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.75	ACUITE B | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	8.75	-	ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding	21.50	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE B’ (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) and reaffirmed the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 21.50 crore bank facilities of Milton Industries Limited (MIL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. The rating downgrade considers the deterioration noted in profitability margins and debt protection metrics and insignificant changes in interest cost and depreciation of the company as compared to H12025-H12024.

About the Company

­­­Based at Ahmedabad, Milton Industries Limited was incorporated in 1985 as an ISO 9001:2008 certified company engaged in manufacturing of Laminates, Artificial Leather Cloth and Glass Fibre Reinforced Epoxy (GFRE) Sheets in the state of Gujarat. MIL has manufacturing facilities located at Mehsana and Sabarkantha district of Gujarat. Initially, the company was engaged in manufacturing of laminates and further diversified into manufacturing and export of Artificial Leather cloth, GFRE Sheets, DGFRP, CCL and NAFTC. The products of the company are primarily used in real estate and artificial leather and polymers in Indian railways and roadways. In addition, the company also has a High-Pressure Hydraulic Press in which it manufactures 12 x 6 size of compact laminate which is mostly in demand in Europe, America, and Australia. Mr. Vikas Jain, Mr. Abhaykumar Mahipalsingh Jain and Mr. Saket Jain are the Wholetime Directors of the company.

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 & reviewof the rating. However, the issuer/borrower failed to submit such information before the 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 Sensitivity

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

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

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	89.06	59.95
PAT	Rs. Cr.	3.19	2.87
PAT Margin	(%)	3.58	4.79
Total Debt/Tangible Net Worth	Times	0.33	0.38
PBDIT/Interest	Times	3.86	6.11

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • 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

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 22 Nov 2023 Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Bank Guarantee/Letter of Guarantee Short Term 1.75 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Proposed Long Term Bank Facility Long Term 0.64 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Cash Credit Long Term 10.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Cash Credit Long Term 0.50 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Term Loan Long Term 1.61 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) 30 Jan 2023 Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Bank Guarantee/Letter of Guarantee Short Term 1.75 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 10.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 0.50 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 1.61 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 0.64 ACUITE BB- (Reaffirmed & Issuer not co-operating*) 02 Nov 2021 Bank Guarantee/Letter of Guarantee Short Term 1.75 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 1.61 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB) Cash Credit Long Term 0.50 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB) Cash Credit Long Term 10.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB) Proposed Long Term Bank Facility (RP) Long Term 0.64 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB) * The issuer did not co-operate; based on best available information.

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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 avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.75 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility 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+ ) HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.61 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Abhishek Singh 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.