Press Release SHREE KRISHNA PACKAGING September 05, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	8.00	ACUITE BB- | Downgraded | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	8.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) to ‘ACUITE BB-’ (read as ACUITE double B minus)  on the Rs 8.00 Cr. bank facilities of Shree Krishna Packaging. This rating is now an indicative rating and is based on best available information. Rating has been downgraded on account of information risk.

About the Company

­Established in 2010, Shree Krishna Packaging (SKP) is a partnership firm engaged in manufacturing of new LPG cylinders. The manufacturing facility is located in Kala Amb, Himachal Pradesh with installed capacity of 6 lakhs cylinders per anum. The firm is promoted by Mr. Surender Jain who looks after the day to day operations and Mr. Manish Jain. The firm caters to reputed oil companies

Non-cooperation by the issuer/borrower

­Acuité has been requesting for Financial information and No Default Statement from the rated entity. 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 non - cooperation 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

­None

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 21 (Provisional)	FY 20 (Actual)
Operating Income	Rs. Cr.	24.28	11.93
PAT	Rs. Cr.	0.06	0.01
PAT Margin	(%)	0.25	0.06
Total Debt/Tangible Net Worth	Times	1.20	0.94
PBDIT/Interest	Times	1.57	1.68

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Status of non-cooperation with previous CRA

­None

Any other information

­None

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Note on Complexity Levels of the Rated Instrument

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 24 Jun 2021 Cash Credit Long Term 8.00 ACUITE BB | Stable (Upgraded from ACUITE BB-) 28 Sep 2020 Cash Credit Long Term 8.00 ACUITE BB- (Downgraded and Issuer not co-operating*) 04 Jul 2019 Cash Credit Long Term 8.00 ACUITE BB (Issuer not co-operating*) 17 May 2018 Cash Credit Long Term 8.00 ACUITE BB | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Rating Bank of Baroda Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 8.00 ACUITE BB- | Downgraded | Issuer not co-operating*

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Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Himanshu . Senior Analyst-Rating Operations Tel: 022-49294065 himanshu.mehta@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.