Press Release September 02, 2024 ROYAL CLASSIC MILLS PRIVATE LIMITED Rating Reaffirmed, Withdrawn & Issuer Not Cooperating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	16.01	ACUITE C | Reaffirmed & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	12.60	Not Applicable | Withdrawn	-
Bank Loan Ratings	104.00	-	ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Bank Loan Ratings	38.00	-	Not Applicable | Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	170.61	-	-

Rating Rationale

­Acuité has reaffirmed and withdrawn its long-term rating to ‘ACUITE C’ (read as ACUITE C) for the Rs.16.01 Cr. bank facilities of Royal Classic Mills Private Limited (RCMPL). Acuité has reaffirmed and withdrawn its short-term rating to ‘ACUITE A4’ (read as ACUITE A four) for the Rs.104.00 Cr. bank facilities of Royal Classic Mills Private Limited (RCMPL). The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and the NOC(No Objection Certificate) received from the banker. Acuité has also withdrawn its long-term rating on the  Rs. 12.60 Cr. of Royal Classic Mills Private Limited (RCMPL) without assigning as the instrument is fully repaid. Acuité has also withdrawn its short-term rating on the  Rs. 38.00 Cr. of Royal Classic Mills Private Limited (RCMPL) without assigning as the instrument is fully repaid. The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and NDC (No Due Certificate) received from the banker.  The rating continues to be flagged as “Issuer Not-Cooperating” and is a based on best available information.

About the Company

­­Incorporated in 1991, RCMPL is a Tamil Nadu-based company promoted by first-generation entrepreneurs, Mr. R Gopalakrishnan (Chairman) and Mr. Sivaram (ED). The company is engaged in manufacturing of ready-made garments such as men's shirts and trousers, men's innerwear, boy’s shirts, children's wear and fashion wear for both the export market and domestic market. The company owns the flagship brand - Classic Polo since 2001, which has become one of the most popular and dynamic mid-premium brands in India.

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 & 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 an 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 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 ratingis 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 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	675.44	553.30
PAT	Rs. Cr.	29.81	28.31
PAT Margin	(%)	4.41	5.12
Total Debt/Tangible Net Worth	Times	0.89	0.69
PBDIT/Interest	Times	9.34	4.91

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 21 Aug 2024 Proposed Long Term Bank Facility Long Term 11.39 ACUITE Not Applicable (Withdrawn) PC/PCFC Short Term 30.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) PC/PCFC Short Term 65.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Stand By Line of Credit Short Term 8.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) PC/PCFC Short Term 38.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Letter of Credit Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 5.00 ACUITE C (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 10.00 ACUITE C (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 2.60 ACUITE D (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 11.00 ACUITE C (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.01 ACUITE C (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 11.00 ACUITE C (Reaffirmed & Withdrawn & Issuer not co-operating*) 05 Jul 2023 Secured Overdraft Long Term 5.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) Cash Credit Long Term 10.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) Term Loan Long Term 2.60 ACUITE D (Downgraded & Issuer not co-operating* from ACUITE BB+) Term Loan Long Term 11.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) Term Loan Long Term 0.01 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) Term Loan Long Term 11.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) Proposed Long Term Bank Facility Long Term 11.39 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB+) PC/PCFC Short Term 30.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) PC/PCFC Short Term 65.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Stand By Line of Credit Short Term 8.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) PC/PCFC Short Term 38.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Letter of Credit Short Term 1.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) 21 Jun 2022 Letter of Credit Short Term 1.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2) PC/PCFC Short Term 38.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2) Stand By Line of Credit Short Term 8.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2) PC/PCFC Short Term 65.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2) PC/PCFC Short Term 30.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2) Term Loan Long Term 11.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Proposed Long Term Bank Facility Long Term 11.39 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Term Loan Long Term 0.01 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Term Loan Long Term 11.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Term Loan Long Term 2.60 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Cash Credit Long Term 10.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable) Secured Overdraft Long Term 5.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)

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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 avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple Not Applicable|Withdrawn Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* Canara Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple Not Applicable|Withdrawn Union Bank of India Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 65.00 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* South Indian Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 38.00 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* Federal Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE C | Reaffirmed & Withdrawn | Issuer not co-operating* Canara Bank Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple Not Applicable|Withdrawn Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.60 Simple Not Applicable|Withdrawn Union Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE C | Reaffirmed & Withdrawn | Issuer not co-operating* South Indian Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.01 Simple ACUITE C | Reaffirmed & Withdrawn | Issuer not co-operating*

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Abhishek Singh Analyst - Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.