RATING RATIONALE 31 March 2021 The Mohan Goldwater Breweries Limited

Brickwork Ratings has reviewed the ratings for the Bank Loan Facilities of Rs 53.50 Crs of The Mohan Goldwater Breweries Limited based on best available information, as the issuer did not cooperate.

Particulars

Amount (Rs Crs) Rating#

Facility* Tenure Previous Previous Present (16 March 2020) Present

BWR BB- BWR B+ Long (Stable) (Stable) Fund based 53.50 53.50 Term Issuer Not Cooperating Issuer Not Cooperating** (Downgrade)

Total 53.50 53.50 Rs Fifty three Crores and fifty lakhs Only

# Please refer to BWR website www.brickworkratings.com/ for definition of the ratings *Details of Bank facilities is provided in Annexure-I ** Issuer did not cooperate , based on best available information.

RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION The rating was due for review in March 2021 and BWR took up with the issuer vide emails dated 24 and 26 March 2021 and over telephonic calls, to provide required information . Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the Company, BWR is unable to assess the company’s performance, its ability to service its debt and maintain a valid rating. Due to Issuer Non cooperation, BWR has reviewed the rating based on best available information and revised the rating to BWR B+ (Stable) (ISSUER NOT COOPERATING )

LIMITATIONS OF THE RATING Information availability risk is a key factor in the assessment of credit risk and non-cooperation by the issuer to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

Page 1 of 5 Company’s Financial Performance ( As available in Nov 2018 )

Key Parameters Units 2017 2018 Result Type Audited Audited

Operating Revenue ₹ Cr 37.18 115.51 OPBDIT ₹ Cr 15.53 16.8 PAT ₹ Cr -30.95 -20.44 Tangible Net worth ₹ Cr 21.94 1.35 Total Debt/Tangible Net worth (analysed ) Times 5.59 86.91 Current Ratio Times 0.77 0.78

COMPANY PROFILE ( As available in July 2018 ) Mohan Goldwater Breweries Limited ( MGWB) was incorporated in 1969 by Mohan Meakin Breweries. In June 2010, the company was acquired by Mr. Tilak Raj Sharma and undertook the manufacturing of beer for United Breweries Limited at its plant located in () which came into end on 31.03.2015. In 2015, the company shifted its production facility to Unnao (Uttar Pradesh) and has tied up with CIPL for the bottling of beer for CIPL and from franchise contract. The company has a capacity of 7 Lac hectolitre .

NON-COOPERATION WITH PREVIOUS RATING AGENCY IF ANY - Ratings moved the rating to IND BB (ISSUER NOT COOPERATING) on 14 Jan 2019

Rating History for the last three years including withdrawal and suspended S.N Instrument Chronology of Rating History for the past 3 Current Rating (2021) o /Facility years

Type Amount 02 Dec (Long Term/ Rating 29 Nov (Rs crs) 16 March 2020 2019 Short Term) 2018

BWR B+ BWR BB- (Stable) (Stable) BWR BB 1 Fund Based Long Term 53.50 (ISSUER NOT (ISSUER NOT ------(Stable) COOPERATING ) COOPERATING ) (Downgrade (Downgrade)

Total 53.50 (Rs Fifty Three Crores and Fifty Lakhs Only )

Page 2 of 5 COMPLEXITY LEVELS OF THE INSTRUMENTS- Simple

For more information, visit www.brickworkratings.com/download/ComplexityLevels.pdf

Hyperlink/Reference to applicable Criteria ● General Criteria ● Approach to Financial Ratios ● What Constitutes Non-Cooperation

Analytical Contacts

[Karan Ahluwalia] [RK Sharma] Senior Rating Analyst [Principal Director – Ratings] [Board: +911123412232 ] Board: +911123412232 [karan.a @brickworkratings.com] [[email protected] ]

1-860-425-2742 I [email protected]

ANNEXURE I The Mohan Goldwater Breweries Limited

Details of Bank Facilities rated by BWR Sl.No. Name of the Bank Type of Facilities Long Term Total [Rs Crs] [Rs Crs]

1 OBC Bank( Now Term Loans 53.50 53.50 PNB)

TOTAL 53.50

Rs Fifty Three Crores and Fifty Lakhs Only

Page 3 of 5 For print and digital media The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

About Brickwork Ratings : Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitisation Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, , , , Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

DISCLAIMER : Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitisation Products, Municipal Bonds, etc. [hereafter referred to as “Instruments”]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR’s best judgement are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR. The ratings assigned by BWR are only an expression of BWR’s opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument. BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative