Press Release SHRIRAM CHITS TAMILNADU PRIVATE LIMITED April 05, 2023 Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	60.00	-	Not Applicable | Withdrawn
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	60.00	-	-

Rating Rationale

­Acuité has withdrawn the rating on the Rs 60.00 crore bank facilities of Shriram Chits Tamilnadu Private Limited. The rating is being withdrawn on account of the request received from the company and 'satisfaction of charge' of the facilities rated as per MCA records. The rating is being withdrawn as per Acuité’s policy on withdrawal of ratings.

About the Company

­Shriram Chits is the largest chit funds entity in India. The trusted household Savings & Investments service provider, a pioneer in Micro Finance in India. The Annual Auction Turnover of our Chit Companies is touching Rs.3,000 crores.(US$ 715 million). Shriram Chits started operations in 1974 with a single branch. Today, our Chit Companies operate in Andhra Pradesh, Karnataka, Maharashtra, Puducherry (Pondicherry) and Tamil Nadu, through 465 Branch offices, employing 6,000 people and 65,000 Agents through four entities Shriram Chits (Maharashtra) Limited, Shriram Chits Private Limited, Shriram Chits (Karnataka) Private Limited, Shriram Chits (Tamilnadu) Private Limited.

Analytical Approach

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Key Rating Drivers

Strengths

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Weaknesses

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Rating Sensitivities

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Material covenants

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Liquidity Position

­­­Not Applicable

Outlook:

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About the Rated Entity - Key Financials

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Status of non-cooperation with previous CRA (if applicable)

­­­Not Applicable

Applicable Criteria

• 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

­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 27 Jan 2022 Bank Guarantee Short Term 28.00 ACUITE A4+ ( Issuer not co-operating*) Proposed Bank Guarantee Short Term 2.00 ACUITE A4+ ( Issuer not co-operating*) Bank Guarantee Short Term 30.00 ACUITE A4+ ( Issuer not co-operating*) 29 Oct 2020 Bank Guarantee Short Term 28.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Proposed Bank Guarantee Short Term 2.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 30.00 ACUITE A4+ (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 Tamil Nadu Mercantile Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 30.00 Simple Not Applicable|Withdrawn City Union Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 28.00 Simple Not Applicable|Withdrawn Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 2.00 Simple Not Applicable|Withdrawn

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.