Press Release PEPPERMINT CLOTHING PRIVATE LIMITED June 30, 2023 Rating Reaffirmed & Withdrawn,Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.00	ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	0.45	-	Not Applicable | Withdrawn
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	20.45	-	-

Rating Rationale

­Acuité has reaffirmed & withdrawn its long term rating of ‘ACUITE BB-' (read as ACUITE double B minus)’ on the Rs 20.00 crore bank facilities of Peppermint Clothing Private Limited. Acuite has withdrawn its short term rating on the Rs 0.45 Cr bank facilities of Peppermint Clothing Private Limited. The rating is now an indicative rating and is based on the best available information.

About the Company

­Maharashtra based, Peppermint Clothing Private Limited (PCPL) was incorporated in 2007 by Mr. Santosh Katariya and his brothers Mr. Kamlesh Katariya and Mr. Rajendra Katariya. The company began its operations in 2011 and is engaged in the manufacturing of readymade garments for girls of the age group 0-14 years. Peppermint Clothing Private Limited has a registered brand name 'Peppermint' with a manufacturing facility of capacity to produce 12,00,000 pieces per annum.

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 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 Acuite to comment upon.

Material Covenants

­Not Applicable

Liquidity Position

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

Outlook

­Not Applicable

Other Factors affecting Rating

­Not Applicable

Key Financials

Particulars	Unit	FY 22 (Provisional)	FY 21 (Actual)
Operating Income	Rs. Cr.	52.97	25.91
PAT	Rs. Cr.	0.79	(7.52)
PAT Margin	(%)	1.48	(29.04)
Total Debt/Tangible Net Worth	Times	3.01	3.10
PBDIT/Interest	Times	1.25	(1.07)

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­Not Applicable

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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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 29 Sep 2022 Cash Credit Long Term 20.00 ACUITE BB- | Stable (Reaffirmed) Proposed Bank Facility Short Term 0.45 ACUITE A4 (Reaffirmed) Letter of Credit Short Term 1.00 ACUITE A4 (Withdrawn) 09 Jul 2021 Letter of Credit Short Term 1.00 ACUITE A4 (Downgraded from ACUITE A4+) Term Loan Long Term 0.28 ACUITE BB- (Withdrawn) Cash Credit Long Term 19.45 ACUITE BB- | Stable (Downgraded from ACUITE BB ) 05 Nov 2020 Term Loan Long Term 0.28 ACUITE BB (Downgraded and Issuer not co-operating*) Cash Credit Long Term 18.50 ACUITE BB (Downgraded and Issuer not co-operating*) Letter of Credit Short Term 1.67 ACUITE A4+ (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 Canara Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating* Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 0.45 Simple Not Applicable|Withdrawn

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Suman Paul Analyst-Rating Operations Tel: 022-49294065 suman.paul@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.