Press Release August 13, 2024 GANPATI BUILDERS Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	22.70	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	148.30	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding	171.00	-	-

Rating Rationale

A­cuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and the short-term rating to 'ACUITE A4+' (read as ACUITE A four Plus) from 'ACUITE A3' (read as ACUITE A Three) on Rs. 171.00 crore bank facilities of Ganpati Builders. The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information. The rating is downgraded on account of information risk.

About the Company

­­Incorporated in 2013, Ganpati Builders is a partnership firm based out of Rajasthan and undertakes subcontracts and civil construction projects of roads and railways majorly for National Highway and Infrastructure Development Corporation Limited (NHIDCL) and PWD. The company is registered as a AA contractor with Rajasthan Government and Class A contractor with Uttarakhand government. The firm is promoted by Mr. Banwari Sharma, Mr. Om Sharma, Hans Sharma and Mr. Rajesh Sharma who have over a decade of experience in the industry.

Unsupported Rating

­Not Applicable

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 non cooperation 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 endeavoured 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 rating is base.

Rating Sensitivities

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

Liquidity Position

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

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	197.40	111.63
PAT	Rs. Cr.	19.40	15.89
PAT Margin	(%)	9.83	14.23
Total Debt/Tangible Net Worth	Times	1.44	1.83
PBDIT/Interest	Times	9.52	9.81

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 24 May 2023 Secured Overdraft Long Term 3.00 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 7.00 ACUITE BBB- | Stable (Assigned) Secured Overdraft Long Term 4.25 ACUITE BBB- | Stable (Assigned) Covid Emergency Line. Long Term 2.85 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Assigned) Secured Overdraft Long Term 0.50 ACUITE BBB- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 0.10 ACUITE BBB- | Stable (Assigned) Bank Guarantee (BLR) Short Term 17.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 30.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 37.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 39.80 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 24.50 ACUITE A3 (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 ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) Kotak Mahindra Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) A U Small Finance Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 37.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 39.80 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) Yes Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 ) HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Kotak Mahindra Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) HDFC Bank Ltd Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.85 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.10 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Yes Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) ICICI Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) A U Small Finance Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.25 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )

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Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Apurva Kumari Associate Analyst - Rating Operations Tel: 022-49294065 apurva.kumari@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.