SHIVAM AUTOTECH LIMITED — Capital/Financing Update 2019

Aug 22, 2019

August 22, 2019

The National Stock Exchange of India The Bombay Stock Exchange Limited "Exchange Plaza", Bandra Kurla Complex, Phiroje Jeejeebhoy Towers Bandra East, Dalal Street Fort Munibai 7 400 051 Mumbai 7 (Scrip Code ⁷ SHIVAMAUTO) (Scrip Code ⁷

400 001 532776)

Sub: Intimation of Credit Rating. of the Company

Dear Sir,

This is to inform you that rating committee of Credit Analysis & Research Limited (CARE) has assigned the following ratings to the Bank facilities:

Facilities	Current Rating	Previous Rating
- Long term Bank facilities	CARE BBB; Negative (Triple B;	CARE BBB+; Stable (Triple B+;
	Outlook Negative)	Outlook Stable)
Short term Bank facilites	CARE A2 (A Two)	CARE A2+ Two (A Plus)

CARE has downgraded the ratings based on the following reasons:

• 1. Financial risk profile of the Company during FY ²⁰¹⁹ and Ql FY ²⁰²⁰ marked by loss at net level.
• 1. Delicately poised liquidity position With high working capital utilization.
• 1. Ratings remained constrained by moderated solvency and debt coverage indicators.
• 1. Cyclical nature of auto sector

However, ratings continue to derive strength from the experienced and resourceful promoters, favorable plant locations and strong operational linkages and long standing relationship with its major customer,

The Company's ability to improve its profitability margins while ramping up its production in the new Greenfield plants as well as continued support and linkages with Hero MotoCorp would remain the key rating sensitivities.

Kindly take the above on your record and oblige.

10, 1st Floor, Emaar Digital Greens, Tower A, Sector 61, Golf Course ^| +91-124-4698700 [ info@shivamautotech.com Extension Road, Gurugram, Haryana-122102