Press Release October 16, 2024 UIC UDYOG LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE C | Downgraded	-
Bank Loan Ratings	25.00	ACUITE D | Downgraded	-
Bank Loan Ratings	20.00	-	ACUITE A4 | Downgraded
Bank Loan Ratings	10.00	-	ACUITE D | Downgraded
Total Outstanding	70.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE BBB-' (read as ACUITE Triple B Minus) for bank facilities of Rs.25 Cr. and downgraded its long term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BBB-' (read as ACUITE Triple B Minus) for bank facilities of Rs.15 Cr. of UIC Udyog Limited (UIC). Acuite has downgraded its short-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A3' (read as ACUITE A three) on the Rs.10.00 crore bank facilities of and downgraded its short-term rating to 'ACUITE A4' (read as ACUITE A Four) from 'ACUITE A3' (read as ACUITE A Three) for the bank facilities of Rs. 20 Cr. of UIC Udyog Limited (UIC). Rationale of Rating Downgrade The downgrade is based on delays reported in servicing of debt obligation in credit bureau information report and bank statement of UIC.

About the Company

­Incorporated in 1995, UIC Udyog Ltd (UIC) is a Kolkata based company engaged in manufacturing of non-alloy steel wires. The company has two manufacturing units at Kalyani and Khanyan with an aggregate installed capacity of 60000 tonnes per annum for steel wire and 48000 tonnes per annum for galvanizing line. The company has a power purchase agreement with Maharashtra Electricity Distribution Company Ltd for its 5 MW of wind mill capacity. The company is promoted by Laser Power and Infra Private Limited (LPIPL) among others and is currently is being managed by Mr. Devesh Goel, Mr. Debashish Rout and Mr. Akshat Goel.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has taken a standalone view of the business and financial risk profile of UICUL to arrive at the rating.

Key Rating Drivers

Strengths

Strong Parentage Laser Power and Infra Private Limited (LPIPL) acquired 51 per cent stake in UICUL in June 2021 and continues to be its parent. The balance is held by Mr. Deepak Goel, the key promoter and his family. LPIPL is an established player in the cable and conductor segment and is promoted by Purushottam Dass Goel and his son Mr. Deepak Goel. UIC is currently is being managed by Mr. Devesh Goel, Mr. Debashish Rout and Mr. Akshat Goel. Acuité believes that UIC's strong parentage will augur well for its overall operating performance.

Weaknesses

Instance of delay in servcing of debt obligation  Instance of delay in servicing of term loan obligation by the companyin recent past is observed in its loan account statement and has also been reported in itscredit bureau information report.

Rating Sensitivities

> Timely servicing of debt obligations

Liquidity Position

Stretched

­Liquidity position of the company is marked stretched due to instance of delay in servicing of term loan obligation by the company in recent past.

Outlook: Not Applicable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	122.49	173.79
PAT	Rs. Cr.	0.82	44.07
PAT Margin	(%)	0.67	25.36
Total Debt/Tangible Net Worth	Times	0.14	0.05
PBDIT/Interest	Times	2.57	69.98

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

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 15 Mar 2024 Bank Guarantee (BLR) Short Term 5.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A3 (Assigned) Cash Credit Long Term 10.00 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Reaffirmed) Letter of Credit Short Term 5.00 ACUITE A3 (Reaffirmed) Term Loan Long Term 10.00 ACUITE BBB- | Stable (Reaffirmed) 20 Jan 2023 Bank Guarantee (BLR) Short Term 5.00 ACUITE A3 (Reaffirmed) Letter of Credit Short Term 5.00 ACUITE A3 (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Cash Credit Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) 19 Nov 2021 Letter of Credit Short Term 5.00 ACUITE A3 (Assigned) Proposed Cash Credit Long Term 20.00 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 20.00 ACUITE BBB- | Stable (Assigned) Bank Guarantee (BLR) Short Term 5.00 ACUITE A3 (Assigned)

­

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Indusind Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4 | Downgraded ( from ACUITE A3 ) RBL Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE D | Downgraded ( from ACUITE A3 ) ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4 | Downgraded ( from ACUITE A3 ) ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE C | Downgraded ( from ACUITE BBB- ) Indusind Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE C | Downgraded ( from ACUITE BBB- ) RBL Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded ( from ACUITE BBB- ) Indusind Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4 | Downgraded ( from ACUITE A3 ) RBL Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Dec 2028 10.00 Simple ACUITE D | Downgraded ( from ACUITE BBB- )

Contacts

Mohit Jain Senior Vice President - Rating Operations Sahil Sawant Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@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.