Press Release S M LULLA INDUSTRIES WORLD WIDE December 14, 2022 Rating Downgraded & Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2.90	ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	24.50	-	ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	27.40	-	-

Rating Rationale

­Acuité has downgraded & withdrawn the long term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB’ (read as ACUITE triple B) and short term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) from ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.27.40  crore bank facilities of S M Lulla Industries Worldwide. The rating withdrawal is in accordance with the Acuité’s policy on withdrawal of rating. This rating is now an indicative rating and is based on best available information. The rating is being withdrawn on account of request received from the company and NOC received from the banker.

About the Company

­S M Lulla industries Worldwide (SML), set up in 1994, is a Chennai-based partnership firm promoted by Mr. Sanjay Kumar Mohan Singh Lulla and Mrs. Mona Sanjay Kumar Lulla. The firm is engaged in manufacturing and exporting of leather garments to Europe and Canada. It is a 100 percent export business. The firm has 8 manufacturing units (own) located in Chennai with an installed capacity of manufacturing 30,000 garments per month.

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 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.

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

Key Financials

­The issuer has not provided the latest financial statements for Acuite to comment upon

Status of non-cooperation with previous CRA

­None

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

• 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

­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 29 Sep 2021 Standby Line of Credit Short Term 2.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Short Term 7.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Long Term 2.90 ACUITE BBB | Stable (Reaffirmed) Letter of Credit Short Term 3.00 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 12.50 ACUITE A3+ (Reaffirmed) 30 Jul 2020 Bills Discounting Short Term 10.00 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 1.50 ACUITE A3+ (Reaffirmed) Packing Credit Long Term 2.50 ACUITE BBB | Stable (Reaffirmed) Letter of Credit Short Term 3.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Long Term 1.40 ACUITE BBB | Stable (Reaffirmed) Standby Line of Credit Short Term 2.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Short Term 7.00 ACUITE A3+ (Reaffirmed) 04 Jun 2019 Bills Discounting Short Term 1.50 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 10.00 ACUITE A3+ (Reaffirmed) Letter of Credit Short Term 3.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Long Term 1.40 ACUITE BBB | Stable (Reaffirmed) Standby Line of Credit Short Term 2.00 ACUITE A3+ (Reaffirmed) Proposed Bank Facility Short Term 7.00 ACUITE A3+ (Reaffirmed) Packing Credit Long Term 2.50 ACUITE BBB | Stable (Reaffirmed)

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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 State Bank of India Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 12.50 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* State Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 2.90 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* State Bank of India Not Applicable Stand By Line of Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE A4+ | Downgraded & Withdrawn | 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.