Press Release December 22, 2023 SHREERAM AND SONS Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.00	-	ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding	20.00	-	-

Rating Rationale

­Acuité has downgraded the short-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE A4’ (read as ACUITE A Four) on the Rs. 20.00 crore bank facilities of Shreeram And Sons. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.  The downgrade is basis of publicly available information about the company.

About the Company

­­Established in 2013, Shreeram And Sons is a Bangalore based partnership firm, engaged in manufacturing & exporting readymade garments. The firm is established by Mr. Bhagwat Sharad Kumar and Mr. V. Ramesh. Shreeram & sons is primarily catering to the markets of USA, Italy and South Korea for its overseas clients and domestic clients in the form of Mirza International Limited (Redtape brand). The firm is also exporting to reputed global brands like Micheal Kors USA, Shinsegae International Inc (South Korea). The factory is Worldwide Responsible Accredited Production (WRAP) certified.

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 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 rating is based.

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statement for Acuite to comment.

Rating Sensitivity

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

All Covenants

­Not Applicable

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

­Not Applicable

Status of non-cooperation with previous CRA

­Not Applicable

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 20 Oct 2023 Packing Credit Short Term 15.00 ACUITE A4 ( Issuer not co-operating*) Proposed Packing Credit Short Term 2.00 ACUITE A4 ( Issuer not co-operating*) Letter of Credit Short Term 1.00 ACUITE A4 ( Issuer not co-operating*) Proposed Letter of Credit Short Term 2.00 ACUITE A4 ( Issuer not co-operating*) 25 Jul 2022 Letter of Credit Short Term 1.00 ACUITE A4 ( Issuer not co-operating*) Proposed Packing Credit Short Term 2.00 ACUITE A4 ( Issuer not co-operating*) Packing Credit Short Term 15.00 ACUITE A4 ( Issuer not co-operating*) Proposed Letter of Credit Short Term 2.00 ACUITE A4 ( Issuer not co-operating*) 26 Apr 2021 Letter of Credit Short Term 1.00 ACUITE A4 (Downgraded and Issuer not co-operating*) Packing Credit Short Term 15.00 ACUITE A4 (Downgraded and Issuer not co-operating*) Proposed Letter of Credit Short Term 2.00 ACUITE A4 (Downgraded and Issuer not co-operating*) Proposed Packing Credit Short Term 2.00 ACUITE A4 (Downgraded and Issuer not co-operating*) 29 Jan 2020 Proposed Packing Credit Short Term 2.00 ACUITE A4+ (Issuer not co-operating*) Packing Credit Short Term 15.00 ACUITE A4+ (Issuer not co-operating*) Proposed Letter of Credit Short Term 2.00 ACUITE A4+ (Issuer not co-operating*) Letter of Credit Short Term 1.00 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 Union Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Union Bank of India Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Letter of Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Packing Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE D | Downgraded | 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.