Press Release January 30, 2025 VIMLA FUELS AND METALS LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.99	ACUITE C | Downgraded	-
Bank Loan Ratings	27.26	ACUITE D | Downgraded	-
Bank Loan Ratings	25.00	-	ACUITE A4 | Downgraded
Bank Loan Ratings	46.75	-	ACUITE D | Downgraded
Total Outstanding	120.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE BBB' (read as ACUITE triple B) on the Rs.27.26 crore bank facilities and downgraded its short-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A3+' (read as ACUITE A Three plus) on the Rs.46.75 crore bank facilities of Vimla Fuels and Metals Limited (VFML). Acuité has downgraded its long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BBB' (read as ACUITE Triple B) on the Rs.20.99 crore bank facilities and downgraded its short-term rating to 'ACUITE A4' (read as ACUITE A Four) from 'ACUITE A3+' (read as ACUITE A Three plus) on the Rs.25.00 crore bank facilities of Vimla Fuels and Metals Limited (VFML). Rationale of Rating Downgrade The downgrade is based on the LC devolvement’s leading to overdrawal in cash credit account for more than 30 days as per the feedback received from banker.

About the Company

Vimla Fuels and Metals Limited (VFML), based in Kachchh (Gujarat), was incorporated in February 2016 by Mr. Sanjay Kumar Agrawal. VFMPL is engaged in the manufacturing and trading of Low Ash Metallurgical (LAM) Coke. The manufacturing plant of the company is located at Bhachau and Lunva, at an optimum distance of 40 kilometres from Kandla Port. The current directors of the company are Mr. Sachin Kumar Agrawal, Mr. Sanjay Kumar Agrawal, Mr. Sandeep Kumar Agrawal, Mr. Gaurav Kumar, Ms. Rakhi Agrawal and Mr. Sarfaraz Mallick

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of VFML to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operation along with experienced management. VFML was incorporated in 2016 and is in the business of trading and manufacturing of Low Ash Metallurgical Coke. The company has been importing as well as procuring from the domestic market, the high graded coal required for the manufacturing of LAM Coke at its plants located in Gujarat. The company is currently headed by Mr. Sanjay Kumar Agrawal who has an extensive experience of over two and half decades in this industry. Further, he is also supported by Mr. Sachin Agarwal in the day-to-day operations of the business.

Weaknesses

Instance of LC devolvement leading to overdrawal in account Instances of LC devolvement leading to overdrawal in cash credit account for more than 30 days due to delay in realisation of foreign receivables.

Rating Sensitivities

Timely servicing of debt obligations

Liquidity Position

Stretched

Liquidity position of the company is marked stretched due to instances of LC devolvement with banks due to delay in realisation of foreign receivables.

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.	623.79	712.75
PAT	Rs. Cr.	38.87	42.57
PAT Margin	(%)	6.23	5.97
Total Debt/Tangible Net Worth	Times	0.20	0.19
PBDIT/Interest	Times	7.97	11.17

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 • Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.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 05 Aug 2024 Letter of Credit Short Term 46.75 ACUITE A3+ (Assigned) Letter of Credit Short Term 25.00 ACUITE A3+ (Assigned) Cash Credit Long Term 25.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 20.00 ACUITE BBB | Stable (Assigned) Working Capital Term Loan Long Term 2.26 ACUITE BBB | Stable (Assigned) Proposed Long Term Loan Long Term 0.99 ACUITE BBB | 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 State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE D | Downgraded ( from ACUITE BBB ) CSB Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE C | Downgraded ( from ACUITE BBB ) State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 46.75 Simple ACUITE D | Downgraded ( from ACUITE A3+ ) CSB Bank Limited Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE A4 | Downgraded ( from ACUITE A3+ ) Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.99 Simple ACUITE C | Downgraded ( from ACUITE BBB ) State Bank of India Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Jan 2027 2.26 Simple ACUITE D | Downgraded ( from ACUITE BBB )

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Contacts

Mohit Jain Senior Vice President - Rating Operations Parth Patel Lead 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. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.