Press Release SHAH PAPERPLAST INDUSTRIES LIMITED November 30, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2.25	ACUITE D | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	6.75	-	ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	9.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­*The issuer did not co-operate; Based on best available information Acuité has downgraded its long term rating to ‘ACUITE D (read as ACUITE D)’ from ‘ACUITE B’ (read as ACUITE B) and the short term rating to ‘ACUITE D (read as ACUITE D)’ from‘ACUITE A4’ (read as ACUITE A Four) on the Rs.9.00 crore bank facilities of Shah Paperplast industries limited. The rating continues to be flagged as “Issue NotCooperating”. The downgrade is on the basis of publicly available information that the company has delayed in servicing of its debt obligation.

About the Company

­The Gujarat based Shah Paperplast Industries Limited was incorporated in 2008. Engaged in manufacturing Plastic and Paper products. The manufacturing facility is in Nadiad, Gujarat. The company is promoted and managed by Mr. Nilesh Shah, Mr. C.C.Shah and Mrs Sheetal Shah. Shah Paperplast Industries Limited exports the Plastic products to USA and Paper products to USA and UK.

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 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 notcooperating”, 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

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

Other Factors affecting Rating

None

Status of non-cooperation with previous CRA

­Crisil vide its press release dated Nov 28, 2022 had downgraded the rating of Shah Paperplast industries Limited as ‘CRISIL D’.

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

­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 06 Dec 2021 Letter of Credit Short Term 0.75 ACUITE A4 ( Issuer not co-operating*) Term Loan Long Term 2.25 ACUITE B ( Issuer not co-operating*) Packing Credit Short Term 6.00 ACUITE A4 ( Issuer not co-operating*) 08 Sep 2020 Term Loan Long Term 2.25 ACUITE B (Issuer not co-operating*) Packing Credit Short Term 6.00 ACUITE A4 (Issuer not co-operating*) Letter of Credit Short Term 0.75 ACUITE A4 (Issuer not co-operating*) 14 Jun 2019 Term Loan Long Term 2.25 ACUITE B (Issuer not co-operating*) Letter of Credit Short Term 0.75 ACUITE A4 (Issuer not co-operating*) Packing Credit Short Term 6.00 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 Bank of Baroda Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 0.75 Simple ACUITE D | Downgraded | Issuer not co-operating* Bank of Baroda Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Bank of Baroda Not Applicable Term Loan Not available Not available Not available 2.25 Simple ACUITE D | 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.