Press Release October 01, 2025 VISHAL COATERS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	41.00	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	4.00	-	ACUITE A3 | Assigned
Total Outstanding	45.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 41 Cr. bank facilities and short term rating of 'ACUITE A3' (read as ACUITE A three)  Rs. 4 Cr. bank facilities of Vishal Coaters Private Limited. The outlook is 'Stable'. Rationale for rating The rating takes into account long track record of operations and benefits derived from experienced management, moderate financial risk profile, adequate liquidity; However these strengths are partly offset by slight decline in revenues albeit increase in operating profitability and intensive working capital cycle.

About Company

­Patiala, Punjab based Vishal Coaters Private Limited was incorporated in 1998. The company is engaged in the manufacturing of writing and printing paper using wastepaper as a major raw material. The company has an installed capacity of 30,000 metric ton per annum (MTPA) in Patiala, Punjab. The directors of the company are Mr. Luv Mohan Gupta, Mr. Ajay Mohan Gupta, Mr Krishna Mohan Gupta and Mr. Kunal Jain.

About the Group

­Patiala, Punjab based Vishal Paper Industries Private Limited incorporated in 2002. The company is engaged in the manufacturing of writing and printing papers by using wastepaper as a major raw material. The manufacturing facility of the company is located in Patiala (Punjab) and has an installed capacity of 30,000 MT per annum. The present directors of the company are Mr. Luv Mohan Gupta and Mr. Krishan Mohan Gupta.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuite has taken consolidated business and financial risk profile of Vishal Coaters Private Limited and Vishal Paper Industries Private Limited due to common management, same line of business, corporate guarantees provided to both companies and operational linkages.

Key Rating Drivers

Strengths

Long track record of operations and benefits derived from experienced management The group has a long track record of operations managed by Mr. Luv Mohan Gupta, Mr. Ajay Mohan Gupta, Mr. Kunal Jain and Mr. Krishna Mohan Gupta. The promoters hold prior experience in the paper industry. Additionally, the group also has long standing relations with their customers and suppliers. Acuite believes that the benefits derived from the promoters experience and relationship with customers and suppliers will help the company going forward. ­Moderate financial risk profile The financial risk profile of the group is moderate by improving net worth, moderate gearing and debt protection metrics. The adjusted tangible net worth of the group stood at Rs. 60.98 Cr. as on March 31, 2025(Prov.) as compared to Rs. 57.25 Cr. as on March 31, 2024 due to accretion to reserves and quasi equity. Acuite has considered unsecured loans of Rs. 12.29 Cr. as quasi equity in FY 25(Prov.) and FY 24, and the same has been subordinated to bank loans. The adjusted gearing of the group stood at 0.77 times as on March 31, 2025(Prov.) as compared to 0.76 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.72 times as on March 31, 2025(Prov.) as compared to 1.83 times as on March 31, 2024. The debt protection metrices of the group remain moderate marked by Interest Coverage ratio (ICR) of 2.98 times as on March 31, 2025(Prov.) and debt service coverage ratio (DSCR) of 1.52 times for March 31, 2025(Prov.). The net cash accruals to total debt (NCA/TD) stood at 0.22 times as on March 31, 2025(Prov.) as compared to 0.21 times as on March 31, 2024. Acuité believes that the financial risk profile of the group will remain moderate over the medium term, with steady cash accruals, moderate gearing and debt protection metrices.

Weaknesses

Decline in revenues albeit increase in operating profitability The revenues of the group have decreased to Rs. 232.11 Cr. in FY 25(Prov.) as compared to Rs. 274 Cr. in FY 24 on account of decline in realisations and volume sold. The operating profitability has increased to 7.45 percent in FY 25(Prov.) as compared to 5.40 percent in FY 24 on account of decrease in raw material cost. The group is undergoing capex of installing film press machine with a cost of Rs. 7 Cr. funded by a mix of term loan (Rs. 5 Cr. tied up with Union Bank of India) and internal accruals. It is expected to augment in December 2025. The benefit that will be derived from the capex, is it will add uniform coating to the paper surface, leading to an incremental benefit in the topline of the group. Acuite believes that the scale of operations and margins of the group will improve with the stabilisation of the capex in the near to medium term.     ­Intensive Working Capital Cycle The working capital cycle of the company is intensive as reflected by Gross Current Assets (GCA) of 147 days for March 31, 2025(Prov.) as compared to 120 days for March 31, 2024. The debtor period stood at 38 days as on March 31, 2025(Prov.) as compared to 41 days as on March 31, 2024. It typically lies within this range of 40-50 days. Further, the inventory days of the group stood at 109 days as on March 31, 2025 (Prov.) as compared to 57 days in FY2024. The group had certain consumable in the year end for execution of orders, which led to high inventory build-up on year end. The creditors stood at 69 days as on March 31, 2025(Prov.) as compared to 97 days as on March 31, 2024. The payments are made within 70-90 days to the suppliers. Acuité believes that the working capital operations of the group will improve over the medium term due to efficient collection mechanism and expected improvement in inventory policy.

Rating Sensitivities

­Movement in revenues and operating profitability Working capital cycle

Liquidity Position

Adequate

­The group has adequate liquidity marked by net cash accruals of Rs 10.18 Cr. as on FY2025(Prov.) as against long term debt repayment of Rs. 4.68 Cr. over the same period.The cash and bank balance stood at Rs.  0.14 Cr. as on March 31, 2025(Prov.) and Rs. 0.38 Cr. as on March 31, 2024. Further, the current ratio of the company stood at 1.28 times as on March 31, 2025(Prov.) as compared to 1.07 times as on March 31, 2024. The average bank utilization limit for 6 months ended July 2025 is 84 percent. Acuité believes that the liquidity of the group is to remain adequate over the near to medium term on account of steady cash accruals and moderate current ratio.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	232.11	274.00
PAT	Rs. Cr.	3.73	3.33
PAT Margin	(%)	1.61	1.21
Total Debt/Tangible Net Worth	Times	0.77	0.76
PBDIT/Interest	Times	2.98	3.22

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

­None

Any Other Information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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:Not Applicable

­

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. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A3 | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.83 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 31 May 2025 Not avl. / Not appl. 31 Oct 2026 1.06 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 31 May 2025 Not avl. / Not appl. 31 Mar 2029 1.20 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 31 May 2025 Not avl. / Not appl. 31 Jan 2030 3.84 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 31 May 2025 Not avl. / Not appl. 31 Oct 2030 1.98 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 31 Jul 2025 Not avl. / Not appl. 30 Jun 2032 0.09 Simple ACUITE BBB- | Stable | Assigned

­

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No. Name of the company 1 Vishal Coaters Private Limited 2 Vishal Paper Industries Private Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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. 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.