Press Release

Press Release

March 16, 2026

HARIYANA SHIP DEMOLITION PRIVATE LIMITED
Rating Downgraded & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	35.00	ACUITE B \| Downgraded & Withdrawn	-
Bank Loan Ratings	90.00	-	ACUITE A4 \| Downgraded & Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	125.00	-	-

Rating Rationale

Acuité has downgraded and withdrawn its long-term rating to ‘ACUITE B’ (read as ACUITE B) from ‘ACUITE BB+’ (read as ACUITE double B plus) and its short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.125.00 Cr. bank facilities of Hariyana Ship Demolition Private Limited (HSDPL). The rating is being withdrawn on account of request received from the company and No Objection Certificate (NOC) received from the bankers. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating
The downgrade reflects HSDPL’s deteriorated business and financial risk profile, with no operations in FY2025, continued operating and net losses, and management’s confirmation of no future activity in the entity. The financial metrics remain weak with negative coverage ratios. Liquidity is stretched, with negative accruals, minimal cash balance, and very low current ratio. The shift to a standalone analytical approach further highlights the entity’s limited financial flexibility and operational viability. However, networth remains moderate with Rs. 44.76 Cr. as on March 31, 2025.

About the Company

Hariyana Ship Demolition Private Limited (HSDPL), incorporated in 1995, was engaged in ship breaking at Alang-Sosiya, Bhavnagar, Gujarat. The company operates on a 6,000 sq. m plot leased from the Gujarat Maritime Board. Its directors are Mrs. Shalini Reniwal and Mr. Sanjeev Reniwal. The registered office is in Mumbai (MCA), with Bhavnagar listed under GSTIN.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of Hariyana Ship Demolition Private Limited (HSDPL). The change in approach from earlier consolidation with Inducto Steel Limited (ISL) & Hariyana Ship Breakers Limited (HSBL) is due to change in management of the company post-split between the promoter family.

Key Rating Drivers

Strengths

Established presence of promoters in ship recycling industry
The promoters have over three decades of experience in the ship-recycling business, providing the company with established industry relationships and an understanding of pricing and procurement dynamics. Their longstanding presence at Alang, a key ship-breaking hub, has enabled the company to build a moderate net worth of Rs 44.76 Cr. as on March 31, 2025.

Weaknesses

Discontinuation of business operations
HSDPL did not carry out any operations in FY2025 due to the non-availability of ships. The company reported operating loss of Rs.2.02 Cr. and net loss of Rs.2.81 Cr. in FY2025. As per the management, no operations are expected to be undertaken this entity going forward.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Not Applicable

Potential triggers (individual or collective) for a downward rating action:

Not Applicable

Liquidity Position

Stretched

HSDPL has a stretched liquidity position marked by negative accruals of Rs.(1.91) Cr. in FY2025 against nil repayment obligation during the same period. The current ratio stood very low at 0.08 times as on March 31, 2025. The unencumbered cash and bank balance stood at Rs.0.22 Cr. as on March 31, 2025.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	0.00	21.86
PAT	Rs. Cr.	(2.81)	(1.65)
PAT Margin	(%)	0.00	(7.53)
Total Debt/Tangible Net Worth	Times	0.27	0.24
PBDIT/Interest	Times	(5.18)	0.04

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

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
19 Dec 2024	Letter of Credit	Short Term	90.00	ACUITE A4+ (Downgraded from ACUITE A3)
	Cash Credit	Long Term	35.00	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Proposed Short Term Bank Facility	Short Term	75.00	ACUITE Not Applicable (Withdrawn)
21 Sep 2023	Letter of Credit	Short Term	90.00	ACUITE A3 (Reaffirmed)
	Proposed Short Term Bank Facility	Short Term	75.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	35.00	ACUITE BBB- \| Negative (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	35.00	Simple	ACUITE B \| Downgraded & Withdrawn ( from ACUITE BB+ )
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	90.00	Simple	ACUITE A4 \| Downgraded & Withdrawn ( from ACUITE A4+ )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
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.