Press Release NAVAGIRI APPAREL October 20, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1.50	ACUITE B+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	10.00	-	ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	11.50	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded the long term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) and downgraded the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A four plus)  on the Rs. 11.50 crore bank facilities of Navagiri Apparel. The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Company

­Navagiri Apparel, (erstwhile Hardikaa Exports), established in Tirupur in 2012 by Mr. A.R. Shanmugam and Ms. S. Kalarani. The firm manufactures garments for women and children.

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 the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide 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 rating is based.

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

­"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

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

• 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

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 22 Jul 2021 Term Loan Long Term 1.50 ACUITE BB- (Downgraded and Issuer not co-operating*) Packing Credit Short Term 5.00 ACUITE A4+ ( Issuer not co-operating*) Bills Discounting Short Term 5.00 ACUITE A4+ ( Issuer not co-operating*) 23 Apr 2020 Term Loan Long Term 1.50 ACUITE BB (Issuer not co-operating*) Packing Credit Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) Bills Discounting Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) 07 Feb 2019 Bills Discounting Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) Packing Credit Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) Term Loan Long Term 1.50 ACUITE BB (Issuer not co-operating*) 16 Jan 2018 Term Loan Long Term 1.50 ACUITE BB (Issuer not co-operating*) Packing Credit Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) Bills Discounting Short Term 5.00 ACUITE A4+ (Issuer not co-operating*) 01 Sep 2016 Term Loan Long Term 1.50 ACUITE BB | Stable (Assigned) Packing Credit Short Term 5.00 ACUITE A4+ (Assigned) Bills Discounting Short Term 5.00 ACUITE A4+ (Assigned)

­

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Rating Union Bank of India Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 5.00 ACUITE A4 | Downgraded | Issuer not co-operating* Union Bank of India Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 5.00 ACUITE A4 | Downgraded | Issuer not co-operating* Union Bank of India Not Applicable Term Loan Not available Not available Not available 1.50 ACUITE B+ | Downgraded | Issuer not co-operating*

­

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Radhika Kolwankar Analyst-Rating Operations Tel: 022-49294065 radhika.kolwankar@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.