Press Release March 13, 2025 CARGO MOTORS KUTCH PRIVATE LIMITED Rating Assigned and Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	57.50	ACUITE C | Assigned	-
Bank Loan Ratings	42.50	ACUITE C | Downgraded	-
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has downgraded the long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE B+'(read as ACUITE B plus)  on the Rs. 42.50 Cr. bank facilities of Cargo Motors Kutch Private Limited. (CMKPL) Furthermore, Acuite has assigned  the long-term rating to'ACUITE C' (read as ACUITE C) on the Rs. 57.50 Cr. bank facilities of Cargo Motors Kutch Private Limited. (CMKPL). Rationale for rating The rating is based on the findings of Credit Information Report wherein it was reported as SMA-0 for Auto loans, Medium term loans and Short term loans latest upto November 2024.

About the Company

­Gujarat based Cargo Motors Kutch Private Limited was incorporated in the year 2005. The company is engaged in dealership business for MG Motors in Punjab and Haryana. Present directors of the company are Ms. Anita Nanda, Mr. Abhishek Vimal Gujral, Mr. Vimal Chunilal Gujral, Mr. Jayant Nanda And Ms. Devki Nanda.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced Management The directors of the company are Mr. Jayant Nanda, Mrs. Anita Nanda and Ms. Devki Nanda. Acuite believes that the presence of experienced management and increase in demand for automobiles will result in growth in the business.

Weaknesses

Findings in the Credit Information Report The company has been categorised as SMA-0 for Auto loans, Medium term loans and Short Term Loans as reported in Credit Information Report latest upto November 2024. Acuite believes that the timely payment of the loans will be a key monitorable.

Rating Sensitivities

Timely servicing of the debt obligations.

Liquidity Position

Poor

­The liquidity is poor because the company has made delays in the past in servicing the debt obligations as reflected from the Credit Information Report.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	571.01	474.67
PAT	Rs. Cr.	0.41	0.80
PAT Margin	(%)	0.07	0.17
Total Debt/Tangible Net Worth	Times	8.17	8.01
PBDIT/Interest	Times	1.38	1.71

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

Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 12 Jul 2024 Cash Credit Long Term 34.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Proposed Long Term Bank Facility Long Term 8.50 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) 08 May 2023 Cash Credit Long Term 34.00 ACUITE BB- | Stable (Downgraded from ACUITE BB | Stable) Proposed Long Term Bank Facility Long Term 8.50 ACUITE BB- | Stable (Downgraded from ACUITE BB | Stable) 11 May 2022 Cash Credit Long Term 42.50 ACUITE BB | 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.) Complexity Level Rating State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 34.00 Simple ACUITE C | Downgraded ( from ACUITE B+ ) ICICI Bank Ltd Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.50 Simple ACUITE C | Assigned Kotak Mahindra Prime Limited Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 29.00 Simple ACUITE C | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.50 Simple ACUITE C | Downgraded ( from ACUITE B+ ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE C | Assigned

Contacts

Mohit Jain Senior Vice President - 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.