Press Release November 13, 2024 VIHAN ENTERPRISES PRIVATE LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	139.00	ACUITE D | Downgraded	-
Bank Loan Ratings	15.00	-	ACUITE D | Downgraded
Total Outstanding	154.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has downgraded its long-term rating of 'ACUITE D' (read as ACUITE D) from 'ACUITE C' (read as ACUITE C) and short-term rating of 'ACUITE D' (read as ACUITE D) from 'ACUITE A4' (read as ACUITE A four) on the Rs.154 Crore bank facilities of Vihan Enterprises Private Limited(VEPL).  Rationale for Downgrade The rating downgrade is on account of delay in servicing of debt obligation by the company in September, 2024 as declared by it in NDS (No default statement) declaration. The delay is also confirmed by its banker and reported in the company's credit information bureau report.

About the Company

­M/s. Vihan Enterprises Private Limited is a Private Limited Company incorporated on 01 st December 2010 under the Companies Act, 1956. The Registered Office is situated at A-207, Pallavi Nagar near Danapani Restaurant, Bawadiya Kalan Huzur BHOPAL, MP. 462026. Vihan Enterprises Private Limited. has been allocated 20.825 Hectares (Approx. 208,250 Square Meters) Industrial Land from MPSIDC on 99 Years Perpetual Lease at Village Bansapur, Tehasil Budhni, District Sehore to build the new units and is ready to start the construction of the buildings. However, the company is going to diversify its business into sell, buy, refine and deal in kind of agriculture and vegetable produce.

Unsupported Rating

­Not Applicable.

Analytical Approach

­­Acuité has considered the standalone business and financial risk profiles of VEPL to arrive at the rating.

Key Rating Drivers

Strengths

­Established track record of operations VEPL incorporated in 2010 as proprietorship firm and has an established track record of operations and converted into private limited in FY21. The directors of the company Mrs. Swati Dubey and Mr. Ram Krishna Dubey has vast experience in the aforementioned line of business. The extensive experience of the directors have helped the firm to establish long and healthy relationships with its customers and suppliers over the years. Additionally, VEPL has diversified and introduced a new food processing unit from the past financial year. Acuité believes that the experience of the proprietor in the said line of business will help the firm in maintaining a healthy revenue in near to medium term.

Weaknesses

Instance of delays in servicing of debt obligation There have been an instance of delay in servicing of debt obligation by the company in September, 2024 as confirmed by the banker and reported in credit bureau information report of the company. The delay is also declared by the company in its NDS (No default statement) declaration submitted to Acuite.

Rating Sensitivities

­Timely servicing of debt obligations.

Liquidity Position

Poor

­Liquidity position of the company is poor as there have been instances of delays in servicing of debt obligation.

Outlook: Not Applicable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 24 (Provisional)	FY 23 (Actual)
Operating Income	Rs. Cr.	5.47	10.78
PAT	Rs. Cr.	(2.18)	(0.52)
PAT Margin	(%)	(39.93)	(4.81)
Total Debt/Tangible Net Worth	Times	4.16	1.83
PBDIT/Interest	Times	(1.55)	0.41

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

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 16 Sep 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 87.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE B) Cash Credit Long Term 37.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE B) Packing Credit Long Term 15.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE B) 07 Jun 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 87.00 ACUITE B (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 37.00 ACUITE B (Reaffirmed & Issuer not co-operating*) Packing Credit Long Term 15.00 ACUITE B (Reaffirmed & Issuer not co-operating*) 14 Mar 2023 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Assigned) Term Loan Long Term 87.00 ACUITE B | Stable (Assigned) Cash Credit Long Term 37.00 ACUITE B | Stable (Assigned) Packing Credit Long Term 15.00 ACUITE B | 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.) Complexity Level Rating Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded ( from ACUITE A4 ) Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 37.00 Simple ACUITE D | Downgraded ( from ACUITE C ) Union Bank of India Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded ( from ACUITE C ) Union Bank of India Not avl. / Not appl. Term Loan 14 Mar 2024 Not avl. / Not appl. 06 Mar 2025 87.00 Simple ACUITE D | Downgraded ( from ACUITE C )

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Contacts

Mohit Jain Senior Vice President - Rating Operations Akshat Shah 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.