Press Release ALOK BUILDTECH PRIVATE LIMITED October 18, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	27.50	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	37.50	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­­­Acuite has  downgraded the long term rating to Acuite BB+ (read as ACUITE double B plus) from ACUITE BBB (read as ACUITE triple B) and the short term rating to Acuite A4+ (read as ACUITE A four plus) from ACUITE A3+ (read as ACUITE A three plus) on the Rs 37.50 Crore bank facilities of Alok Buildtech Private Limited. The rating is now flagged as “Issuer Not-Cooperating” and downgraded on account of information risk.

About the Company

Incorporated in 2016, Alok Buildtech Private Limited (ABPL) is a Chhattisgarh based company, promoted, and currently headed by Mr. Alok Shivhare and his son, Mr. Apoorv Shivhare. The company is engaged in civil construction of roads and bridges. The company is registered as ‘A5’ class contractor and as a Special Class Contractor with the PWDs of Chhattisgarh. ABPL procures work contracts through tender and executes orders mainly for various departments of Public Work Department (PWD), National Highway Authority of India (NHAI) and Chhattisgarh Road Development Corporation Limited (CGRDC) etc.

About the Group

­Eastablished in 1997, Alok Shivhare is a proprietorship firm managed by Mr. Alok Shivhare. The firm undertakes civil construction contracts largely road and bridges construction mainly for PWD and NHAI in Chhattisgarh. ‘M/s Alok Shivhare has been taken over by Alok Buildtech Private Limited with effective date April 17, 2017. The firm currently does not bid for any new orders but is yet to realise past amounts of security and earnest money deposits. The deposits are expected to be realised in the current financial year, post which the firm will cease to exist.

Non-cooperation by the issuer/borrower

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratingis based.

Rating Sensitivities

­No information provided by the issuer / available for Acuite to comment upon.

Material Covenants

­None.

Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.

Outlook

­Not Applicable.

Other Factors affecting Rating

­None.

Key Financials:

­The rated entity has not shared the latest financial statements despite repeated requests.

Status of non-cooperation with previous CRA

CRISIL, vide its press release dated May 20, 2022 had denoted the rating of Alok Buildtech Private Limited as 'CRISIL B/Stable/A4; ISSUER NOT COOPERATING’.

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Insurance Companies: https://www.acuite.in/view-rating-criteria-66.htm

Note on Complexity Levels of the Rated Instrument

­https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 05 Aug 2021 Bank Guarantee Short Term 27.50 ACUITE A3+ (Assigned) Cash Credit Long Term 10.00 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.) Rating Indian Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 27.50 ACUITE A4+ | Downgraded | Issuer not co-operating* Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 ACUITE BB+ | Downgraded | Issuer not co-operating*

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Sakshi Seksaria Analyst-Rating Operations Tel: 022-49294065 sakshi.seksaria@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.