Shree Renuka Sugars Ltd. — Capital/Financing Update 2021

Aug 20, 2021

Instrument Type	SizeofIssue(Rs.InMillion)	Rating/Outlook	Rating Action
TermLoan	5,480 (reducedfrom13,321)	INDA-/Positive	Upgraded;offRWP
Short Termloan	4,000	INDA1	Upgraded;offRWP
Fundbased limit	1,810	WD	Withdrawn (paid in full)
Non fund basedlimit	11,242	WD	Withdrawn (paid in full)
Working capitallimit	7,400	INDA-/Positive/INDA1	Assigned
Non-convertible debentures(NCDs)	2,188 (reducedfrom 7,821)	INDA-/Positive	Upgraded;offRWP
Proposed working capitallimit	400	INDA-/Positive/INDA1	Assigned

==> picture [579 x 65] intentionally omitted <==

Mr. Sunil Ranka Chief Financial Officer Shree Renuka Sugars Limited 7th Floor Devchand House, Shiv Sagar Estate, Dr Annie Besant Road, Worli, Mumbai 400018

August 19, 2021

Dear Sir/Madam,

Re: Rating Letter for BLR & NCD of Shree Renuka Sugars Limited

India Ratings and Research (Ind-Ra) has upgraded Shree Renuka Sugars Limited’s (SRSL) Long-Term Issuer Rating to ‘IND A-’ from ‘IND BBB+’ while resolving the Rating Watch Positive (RWP). The Outlook is Positive. The instrument-wise rating actions are as follows:

Instrument Type	Maturity Date	Size of Issue (million)	Rating/Outlook	Rating Action
Term Loan	FY27	INR5,480 (reduced from INR13,321)	IND A-/Positive	Upgraded; off RWP
Short term loan		INR4,000	IND A1	Upgraded; off RWP
Fund based Limit		INR1810	WD	Withdrawn (paid in full)
Non-fund-based Limit		INR11,242	WD	Withdrawn (paid in full)
Working capital limit		INR7400	IND A-/Positive/IND A1	Assigned
Non-convertible debentures (NCDs)^		INR2,188 (reduced from INR7,821)	IND A-/Positive	Upgraded; off RWP
Proposed working capital limit#		INR400	IND A-/Positive/IND A1	Assigned

^Details in annexure

#Unallocated

In issuing and maintaining its ratings, India Ratings relies on factual information it receives from issuers and underwriters and from other sources India Ratings believes to be credible. India Ratings conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security.

The manner of India Ratings factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in India where the rated security is offered and sold, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors.

Users of India Ratings ratings should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information India Ratings relies on in connection with a rating will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to India Ratings and to the market in offering documents and other reports. In issuing its ratings India Ratings must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings can be affected by future events or conditions that were not anticipated at the time a rating was issued or affirmed.

India Ratings seeks to continuously improve its ratings criteria and methodologies, and periodically updates the descriptions on its website of its criteria and methodologies for securities of a given type. The criteria and methodology used to determine a rating action are those in effect at the time the rating action is taken, which for public ratings is the date of the related rating action commentary. Each rating action commentary provides information about the criteria and methodology used to arrive at the stated rating, which may differ from the general criteria and methodology for the applicable security type posted on the website at a given time. For this reason, you should always consult the applicable rating action commentary for the most accurate information on the basis of any given public rating.

Ratings are based on established criteria and methodologies that India Ratings is continuously evaluating and updating. Therefore, ratings are the collective work product of India Ratings and no individual, or group of individuals, is solely responsible for a rating. All India Ratings reports have shared authorship. Individuals identified in an India Ratings report

==> picture [579 x 57] intentionally omitted <==

==> picture [579 x 65] intentionally omitted <==

were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only.

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer. Ratings do not comment on the adequacy of market price, the suitability of any investment, loan or security for a particular investor (including without limitation, any accounting and/or regulatory treatment), or the tax-exempt nature or taxability of payments made in respect of any investment, loan or security. India Ratings is not your advisor, nor is India Ratings providing to you or any other party any financial advice, or any legal, auditing, accounting, appraisal, valuation or actuarial services. A rating should not be viewed as a replacement for such advice or services. Investors may find India Ratings ratings to be important information, and India Ratings notes that you are responsible for communicating the contents of this letter, and any changes with respect to the rating, to investors.

It will be important that you promptly provide us with all information that may be material to the ratings so that our ratings continue to be appropriate. Ratings may be raised, lowered, withdrawn, or placed on Rating Watch due to changes in, additions to, accuracy of or the inadequacy of information or for any other reason India Ratings deems sufficient.

Nothing in this letter is intended to or should be construed as creating a fiduciary relationship between India Ratings and you or between India Ratings and any user of the ratings.

In this letter, “India Ratings” means India Ratings & Research Pvt. Ltd. and any successor in interest.

We are pleased to have had the opportunity to be of service to you. If we can be of further assistance, please email us at infogrp@indiaratings.co.in

Sincerely,

India Ratings

Devendra Pant Senior Director

ShreeRenukaSugarsLimited

19-August-2021

==> picture [579 x 65] intentionally omitted <==

	Annexure: Facilities Breakup	Annexure: Facilities Breakup	Annexure: Facilities Breakup
Instrument Description	Banks Name	Ratings	Sanction Amount (INR million)	Outstanding/Rating Amount(INR million)
Term Loan	Indian Renewable Energy Development Agency Limited	IND A-/Positive		49
Term Loan	IFCI Ltd	IND A-/Positive		31
Term Loan	First Abu Dhabi Bank	IND A-/Positive	3000
Term Loan	Standard Chartered bank	IND A-/Positive	2400
Short term Loan	Bank of America	IND A1	4000
Working Capital Limit	Standard Chartered bank	IND A-/Positive/IND A1	3650
Working Capital Limit	DBS Bank	IND A-/Positive/IND A1	3750
Proposed Working Capital Limit	NA	IND A-/Positive/IND A1	400

ANNEXURE (NCD):

InstrumentType	ISIN	DateofIssuance	Coupon Rate(%)	MaturityDate	SizeofIssue(million)	Rating/Outlook
NCDs	INE087H07060	3April 2012	11.7	31March2024	INR1313	IND A-/Positive
NCDs	INE087H07078	24 December2012	11.3	31March2024	INR875	IND A-/Positive
NCDs	INE087H07086	9 March 2018	0.01	31March2027	INR5,521	WD; paid in full
Total NCDs					INR2,188

ShreeRenukaSugarsLimited

19-August-2021