Press Release June 10, 2025 GANDHAR COALS AND MINES PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.00	ACUITE BBB+ | Stable | Assigned	-
Bank Loan Ratings	20.00	ACUITE BBB+ | Stable | Reaffirmed	-
Bank Loan Ratings	95.00	-	ACUITE A2+ | Assigned
Bank Loan Ratings	243.00	-	ACUITE A2+ | Reaffirmed
Total Outstanding	363.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) and short term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs.263.00 Cr. bank loan facilities of Gandhar Coals and Mines Private Limited (GCMPL). The outlook is 'Stable'. Further, Acuite has assigned the long-term rating of 'ACUITE BBB+' (read as ACUITE triple B plus) and short term rating of 'ACUITE A2+' (read as ACUITE A two plus) on the Rs.100 Cr. bank loan facilities of Gandhar Coals and Mines Private Limited (GCMPL). The outlook is 'Stable'. Rationale for rating The rating takes comfort from the extensive experience of its promoters and established track record of operations. The rating also takes into account the increase in operating and profitability margins which stood at 16.69% and 11.81% respectively albeit volatile revenue performance in last three years wherein the revenue stood at Rs.1351.56 Cr. in FY2024 as against Rs.1954.39 Cr. in FY2023 on account of decrease in demand from private customers majorly during monsoon, reduced tender size floated from Maharashtra Power Generation Company and decrease in average price realization of non-coking coal. However, there has been increase in topline in FY2025 estimated at Rs.1535.56 Cr. owing to the increase in revenue from trading of coal and cargo handling services. ?Further, the financial risk profile of GCMPL is healthy marked by healthy net worth, gearing below unity and strong coverage indicators. Additionally, the liquidity position is strong reflected by healthy cash accruals, current ratio and moderate bank limit utilization. However, the aforementioned factors are partly offset by susceptibility of company's profitability to volatility in coal prices, decrease in average price realization and moderated working capital operations in FY2024 as well as FY2025 reflected by high GCA days and the same will be key monitorable factors. The rating is further constrained by tender based nature of business and customer concentration risk wherein approximately 60% of the revenue is generated from Maharashtra Power Generation Company and any change in the vendor selection by customer can have a severe impact on the revenue of the company.

About the Company

­Mumbai based, Gandhar Coals and Mines Private Limited was incorporated in August 2018. Earlier it was a partnership firm which was later converted into Private Limited Company. The company imports non-coking coal from countries including Indonesia, Australia, South Africa etc. and receives bulk orders through ports across Maharashtra, Gujarat, Andhra Pradesh, West Bengal etc. and distributes to its customers all over India. The current directors are Mr. Saurabh Ramesh Parekh and Mr. Kunal Kailash Parekh. The non-coking coal is mainly used in power generation companies, cement, steel and metal, chemical and pharma, refineries, paper units, textile units, sugar industries etc.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of GCMPL while arriving at the rating.

Key Rating Drivers

Strengths

­Extensive experience of promoters in the industry and Long operational track record The current promoters of GCMPL are Mr. Saurabh Ramesh Parekh and Mr. Kunal Kailash Parekh who have experience of over a decade in the industry. The operational track record and extensive experience of the promoters has helped GCMPL achieve a relatively large scale of operations and establish healthy relationship with its customers and suppliers. The company caters to a reputed client base which includes Maharashtra State Power Generation Company Limited, Hinduja National Power Corporation Limited, Reliance Industries Limited, etc. Acuité believes that GCMPL will continue to benefit from its experienced management, established relations with clientele as well as suppliers and long track record of operations. Healthy Financial Risk Profile The financial risk profile of the company is healthy, marked by healthy net worth, strong leverage and coverage indicators. The net worth of the company stood at Rs.417.40 Crores in FY2024 as against Rs.257.98 in FY2023. The increase in the net-worth is on an account of accretion of profits into reserves. The capital structure of the company is marked by gearing ratio which stood below unity at 0.02 times as on 31st March 2024 against 0.09 times as on 31st March 2023. Further, the coverage indicators of the company are reflected by interest coverage ratio and debt service coverage ratio which stood at 10.98 times and 8.28 times respectively as on 31st March 2024 as against 9.87 times and 7.64 times respectively as on 31st March 2023. The TOL/TNW ratio of the company stood at 0.92 times as on 31st March 2024 as against 0.96 times as on 31st March 2023 and Debt-EBITDA stood at 0.03 times as on 31st March 2024 as against 0.08 times as on 31st March 2023. Acuité expects the financial risk profile of the company to remain healthy in near to medium term with no debt funded capex plans. Increase in profitability margins albeit decrease in revenue The revenue of the company stood at Rs.1351.56 Crore in FY2024 against Rs.1954.39 Crores in FY2023. The dip in revenue is on account of decrease in demand from private customers majorly during monsoon along with reduced tender size floated from Maharashtra State Power Generation Company Limited (Mahagenco) in FY2024. Moreover, the decrease in average price realization on account of price correction further added to the dipping revenue. However, there has been increase in topline in FY2025 estimated at Rs.1535.56 Cr. Further, EBITDA Margin of the company increased and stood at 16.69% in FY2024 as compared to 14.59% in FY2023. The increase is on account of better negotiations. Likewise, PAT Margin increased to 11.81% in FY2024 from 10.12% in FY2023. Acuite expects that the revenue and profitability of the company will remain healthy in near to medium term owing to the increase in revenue from trading of coal and cargo handling services and same will remain a key sensitive factor.

Weaknesses

Moderate Working Capital Operations The working capital operations of the company moderated marked by GCA days of 159 days as on 31st March 2024 as compared to 55 days as on 31st March 2023. The higher GCA days is mainly on account of incremental other current assets along with increase in inventory and debtors. The inventory days stood at 24 days as on 31st March 2024 as compared to 4 days as on 31st March 2023 which elongated as the company is maintaining stored coal inventory as in when required for order execution. The same further stretched the creditor days which stood at 104 days as on 31st March 2024 as compared to 32 days as on 31st March 2023. The debtor days stood at 110 days as on 31st March 2024 as compared to 42 days as on 31st March 2023. Further, working capital limits stood at an average of 46.96% for non-fund based facilities for the last six months ended March, 2025. Acuité expects that working capital operations are likely to remain similar in near to medium term. Competitive segment and stressed end user industry Coal traded and transported by the company find their end use by companies involved in power generation, manufacturing of cement, iron & steel. Increasing cost of supply as against environmentally friendly and economically attractive options of solar and wind power has led to some reduction in energy consumption from thermal power plants, putting these power plants under financial distress. Further, the company deals with government organizations and quotes for the contracts on tender basis. Risk become more pronounced as tendering is based on minimum amount of bidding of contracts. Going forward, the company’s ability to successfully bid for greater number of large orders remains to be seen. Moreover, delays and non-receipt of power dues from MSPGCL and any policy changes affecting the highly regulated coal industry, or its end users will impact the financial and business risk profile of GCMPL. High customer concentration risk The company currently has high customer concentration as one customer ~ Maharashtra State Power Generation Company Limited is contributing more than 60% of the total revenue in FY2024 and FY2023 and any change in the customer's vendor selection might have severe impact on the turnover and operations of the company. The company's ability to get repeat order from existing customers and diversify the customer base remains a key monitorable.

Rating Sensitivities

­Sustenance of profitability margins while maintaining scale of operations Working Capital Operations

Liquidity Position

Strong

The liquidity profile of the company is strong with net cash accruals of Rs.160.31 Cr. as on 31st March 2024 against nil debt repayment obligations over the same period. Going forward, the company is expected to generate net cash accruals under the range of Rs.180.00 Crore to Rs.220.00 Crore against the debt repayment obligations up to Rs.1.55 Crore over the same period. The current ratio of the company stood at 1.71 times as on 31st March 2024 as against 1.62 times as on 31st March 2023. The working capital limits stood at an average 46.96% for non-fund based facilities for the last six months ended March, 2025. Further, the unencumbered cash and bank balance available with the company stood at Rs.11.78 Crore as on 31st March 2024. Acuité believes that going forward the company will maintain strong liquidity position due to steady accruals.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	1351.56	1954.39
PAT	Rs. Cr.	159.64	197.77
PAT Margin	(%)	11.81	10.12
Total Debt/Tangible Net Worth	Times	0.02	0.09
PBDIT/Interest	Times	10.98	9.87

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 Mar 2024 Letter of Credit Short Term 145.00 ACUITE A2+ (Upgraded from ACUITE A3+) Bills Discounting Short Term 10.00 ACUITE A2+ (Upgraded from ACUITE A3+) Letter of Credit Short Term 45.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 48.00 ACUITE A2+ (Assigned) Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Cash Credit Long Term 5.00 ACUITE BBB+ | Stable (Assigned) 14 Dec 2022 Letter of Credit Short Term 145.00 ACUITE A3+ (Assigned) Bills Discounting Short Term 10.00 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.) Complexity Level Rating CSB Bank Limited Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE A2+ | Assigned HDFC Bank Ltd Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A2+ | Reaffirmed Indusind Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB+ | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BBB+ | Stable | Reaffirmed IDFC First Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB+ | Stable | Reaffirmed CSB Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB+ | Stable | Assigned IDFC First Bank Limited Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 43.00 Simple ACUITE A2+ | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 145.00 Simple ACUITE A2+ | Reaffirmed Indusind Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE A2+ | Reaffirmed Indusind Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A2+ | Assigned

­* Cash Credit and Letter of Credit Limits from IDFC First Bank are sublimit of combined working capital limit of Rs.48.00 Cr.

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Archita Sharma 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.