Press Release PRASSANNA SPINNING MILLS PRIVATE LIMITED July 05, 2023 Rating Downgraded & Withdrawn,Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	84.94	ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	11.60	Not Applicable | Withdrawn	-
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	96.54	-	-

Rating Rationale

­Acuité has downgraded & withdrawn its long term rating to ‘ACUITE B+' (read as ACUITE B plus)’ from ACUITE  BB- (read as ACUITE double B minus) on the Rs 84.94 crore bank facilities. The rating is withdrawn on Rs 11.60 crore of Prassanna Spinning Mills Private Limited. The rating continues to be flagged as “Issue Not Cooperating” and is based on best available information. The rating downgraded because of information risk.

About the Company

­Prassanna Spinning Mills Private Limited (PSPL) was incorporated in 2006 with Mr. P.S.Veluswamy, Mr. C. Kandaswamy, Mrs. R. Geetha and Mr. S.D. Rathinasabapathy as directors. In FY2013-14, Mr. P.S.Veluswamy, and Mr. C. Kandaswamy retired from the company. Currently, the management of the company is looked after by Mr. S.D. Rathinasabapathy. PSPL manufacturing unit is located at Vedasandur, Dindigul.

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 ratingis based.

Rating Sensitivity

­"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 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	349.48	209.69
PAT	Rs. Cr.	19.67	1.16
PAT Margin	(%)	5.63	0.55
Total Debt/Tangible Net Worth	Times	2.27	4.78
PBDIT/Interest	Times	6.73	1.68

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­Not Applicable

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 28 Jun 2023 Cash Credit Long Term 65.00 ACUITE BB- ( Issuer not co-operating*) Proposed Bank Facility Long Term 11.60 ACUITE BB- ( Issuer not co-operating*) Term Loan Long Term 19.94 ACUITE BB- ( Issuer not co-operating*) 03 May 2023 Cash Credit Long Term 65.00 ACUITE BB- ( Issuer not co-operating*) Proposed Bank Facility Long Term 11.60 ACUITE BB- ( Issuer not co-operating*) Term Loan Long Term 19.94 ACUITE BB- ( Issuer not co-operating*) 03 Feb 2022 Proposed Bank Facility Long Term 11.60 ACUITE BB- (Downgraded and Issuer not co-operating*) Cash Credit Long Term 65.00 ACUITE BB- (Downgraded and Issuer not co-operating*) Term Loan Long Term 19.94 ACUITE BB- (Downgraded and Issuer not co-operating*) 04 Nov 2020 Term Loan Long Term 19.94 ACUITE BB (Downgraded and Issuer not co-operating*) Cash Credit Long Term 65.00 ACUITE BB (Downgraded and Issuer not co-operating*) Proposed Bank Facility Long Term 11.60 ACUITE BB (Downgraded and 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 Lakshmi Vilas Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 65.00 Simple ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 11.60 Simple Not Applicable|Withdrawn Lakshmi Vilas Bank Not Applicable Term Loan Not available Not available Not available 19.94 Simple ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating*

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.