Press Release March 25, 2025 JAMKASH VEHICLEADES PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	97.04	ACUITE BB+ | Stable | Reaffirmed	-
Bank Loan Ratings	21.20	-	ACUITE A4+ | Reaffirmed
Total Outstanding	118.24	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed the long term rating of “ACUITE BB+” (read as ACUITE double B plus) and short term rating of “ACUITE A4+” (read as ACUITE A four plus) for Rs.118.24 Cr. bank loan facilities of Jamkash Vehicleades Private Limited. The outlook is ‘Stable’. Rationale for reaffirmation The rating reaffirmation and migration from "Issuer Non-Cooperating' takes into account the intensive working capital operations marked by GCA days of 109 days as on 31st March, 2024 and fund based working capital limits stood at an average of 96.72% and non-fund based working capital limits stood at an average of 92.61% for the last six months ended December 2024. Further, the financial risk profile of the company is moderate as suggested by gearing ratio which stood at 1.75 times and coverage indicators as reflected by interest coverage ratio and debt service coverage ratio which stood at 1.96 times and 1.36 times respectively as on 31st March 2024 as against 1.88 times and 1.25 times respectively as on 31st March 2023 and 2.04 times and 1.58 times respectively as on 31st March 2022. However, the rating draws comfort from the established relationship with Maruti Suzuki Limited and extensive experience of the promoters in the automobile dealership industry. The rating also factors the steady scale of operations, marked by an operating income of Rs.487.10 Cr. in FY2024 and the EBITDA margin as well as PAT margin of the company which stood at 5.64% and 1.60% respectively in FY2024. In addition, liquidity profile is adequate marked by sufficient net cash accrual which stood at Rs.11.19 Cr. in FY2024 against maturing debt obligation of Rs.4.34 Cr. in the same period. Acuite notes that the operations of the company are vulnerable to the inherent cyclical nature of the automobile industry, lower bargaining power and the intense competition among the dealers.

About the Company

­Incorporated in 1993, Jamkash Vehicleades Private Limited (JVPL), is an authorised dealer for all passenger cars of Maruti Suzuki India Limited (MSIL) in Jammu and Kashmir. It currently operates with more than 30 sales, service and spares (3S) showrooms of MSIL passenger vehicles in the state. The company has been associated with MSIL since 1995 and is one of its major dealers in North India. The company is promoted by Mr. Pritam Chand, Ms. Ketki Rana and Mrs. Gunjan Rana. JVPL has fully equipped workshops, customer care and body shop. The Body shop is the first of its kind in North Region and has been awarded “The Best Body Shop” in All India Dealer’s Conference of Maruti Suzuki India Ltd held at Paris in the year 2005.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Jamkash Vehicleades Private Limited (JVPL) while arriving at the rating.

Key Rating Drivers

Strengths

­Long operational track record, experienced management and established market position in Jammu and Kashmir JVPL has been operating in the vehicle dealership sector for around three decades . The promoters also have about three decades of combined industry experience. With around 30 showrooms and service stations around J & K, the company has a stronghold on the market as the largest MSIL authorised dealer in Jammu & Kashmir. Acuité believes that the long operational track record of JVPL and promoters’ extensive understanding and expertise will benefit the company going forward, resulting in steady growth in the scale of operations. Steady Business Risk Profile JVPL has registered the revenue of Rs.487.10 Cr. in FY2024 as against Rs.455.46 Cr. in FY2023. The operating margin of the company stood at 5.64 per cent in FY2024 as against 4.97 per cent in FY2023. The overall profitability margin improved to 1.60 per cent in FY2024 as against 1.35 per cent in FY2023. The increase in revenue and overall profitability is on an account of the incremental revenue contribution from the spares, accessories and service income and steady demand of PV in the domestic market. The RoCE levels for the company of 15.54 percent in FY2024 as against 14.06 percent in FY2023. The company has reported a revenue of Rs.376.43 Cr. as on 31st December, 2024. Going forward, Acuite believes that increasing demand for passenger vehicles along with revenue derived from segments including workshop income, sale of spares and accessories shall continue to support the revenue and profitability of JVPL to an extent and the company will sustain at healthy levels in near to medium term.

Weaknesses

Intensive Working capital operations The working capital operations of company are intensive marked by GCA days of 109 days as on 31st March, 2024 as compared to 91 days as on 31st March, 2023. The high GCA days are mainly on account of high debtor period which stood at 69 days as on 31st March, 2024 as compared to 70 days in the previous year. The debtor period is high as the company sales to institutions which includes Army and other central Government agencies in J&K, from whom the proceeds are sometimes delayed. On the other hand, the creditor days stood at 22 days as on 31st March, 2024. The company has to maintain inventory of all the models of cars for display. The inventory days of the company stood at 39 days as on 31st March, 2024 as compared to 20 days as on 31st March, 2023 on an account of increase in maintenance of stocks/vehicles of Nexa and Arena models by the company. Further, fund based working capital limits stood high at an average of 96.72% and non-fund based working capital limits stood at an average of 92.61% for the last six months ended December, 2024. Acuite expects that the working capital operations of the company will remain at similar levels and will be key monitorable in near to medium term. Moderate Financial Risk Profile The financial risk profile of the company is moderate, marked by modest net worth of Rs.62.55 Crore in FY2024 and Rs.54.77 Crore in FY2023. The increase in the net-worth is on an account of accretion of profits into reserves. Further, the total debt of the company stood at Rs.109.39 Crore as on 31st March, 2024 as against Rs.95.60 Crore as on 31st March, 2023. The capital structure of the company is moderate marked by gearing ratio which stood at 1.75 times as on 31st March, 2024. Further, the coverage indicators of the company are reflected by interest coverage ratio and debt service coverage ratio which stood at 1.96 times and 1.36 times respectively as on 31st March, 2024 as against 1.88 times and 1.25 times respectively as on 31st March, 2023 and 2.04 times and 1.58 times respectively as on 31st March, 2022. The TOL/TNW ratio of the company stood at 2.63 times as on 31st March, 2024 as against 2.45 times as on 31st March, 2023 and DEBT-EBITDA of the company stood at 3.85 times as on 31st March, 2024 as against 4.13 times as on 31st March, 2023. Acuité believes that going forward the financial risk profile of the company will remain in similar range in near to medium term. ­Exposure to competition in the automotive dealership segment The company's operations are dependent on Maruti Suzuki India Limited (MSIL). Though, JVPL is an exclusive dealer of Maruti Suzuki India Limited's entire range of passenger vehicles (PVs) in Jammu & Kashmir, this does not prevent Maruti Suzuki India Limited from appointing any new dealer in the region. Automotive manufacturers normally encourage multiple dealers in the same area to improve market penetration. Moreover, manufacturers face competition in their respective segments, and tend to squeeze margins of dealers to reduce cost. JVPL also faces competition from dealers of other vehicle manufacturers.

Rating Sensitivities

­Sustenance of the profitability margins while scaling up of operations. Further elongation of working capital cycle.

Liquidity Position

Adequate

­The liquidity profile of the company is adequate with net cash accruals of Rs.11.19 Crore as on 31st March, 2024 against the debt repayment obligation of Rs.4.34 Crore over the same period. Going forward, the company is expected to generate net cash accruals under the range of Rs.14.00 Crore to Rs.16.00 Crore against the debt repayment obligations up to Rs.6.90 Crore over the same period. The working capital limits stood at an average of 96.72% for the last six months ended December, 2024. The current ratio of the company stood at 1.19 times as on 31st March, 2024 as against 1.03 times as on 31st March, 2023. Further, the cash and bank balance available with the company stood at Rs.0.81 Crore as on 31st March, 2024. Acuité believes that going forward the company will maintain adequate 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.	487.10	455.46
PAT	Rs. Cr.	7.78	6.15
PAT Margin	(%)	1.60	1.35
Total Debt/Tangible Net Worth	Times	1.75	1.75
PBDIT/Interest	Times	1.96	1.88

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 18 Apr 2024 Bank Guarantee (BLR) Short Term 21.20 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Channel/Dealer/Vendor Financing Long Term 8.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Cash Credit Long Term 60.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 3.86 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Covid Emergency Line. Long Term 12.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Proposed Cash Credit Long Term 0.83 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Covid Emergency Line. Long Term 2.35 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Channel/Dealer/Vendor Financing Long Term 10.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) 19 Jan 2023 Bank Guarantee (BLR) Short Term 21.20 ACUITE A3+ (Assigned) Channel/Dealer/Vendor Financing Long Term 8.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 60.00 ACUITE BBB | Stable (Assigned) Term Loan Long Term 3.86 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 12.00 ACUITE BBB | Stable (Assigned) Proposed Cash Credit Long Term 0.83 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 2.35 ACUITE BBB | Stable (Assigned) Channel/Dealer/Vendor Financing 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 J&K Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.20 Simple ACUITE A4+ | Reaffirmed J&K Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 60.00 Simple ACUITE BB+ | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Channel/Dealer/Vendor Financing Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE BB+ | Stable | Reaffirmed Axis Bank Not avl. / Not appl. Channel/Dealer/Vendor Financing Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BB+ | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 31 Jan 2027 1.05 Simple ACUITE BB+ | Stable | Reaffirmed J&K Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 31 Jan 2026 4.80 Simple ACUITE BB+ | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.74 Simple ACUITE BB+ | Stable | Reaffirmed J&K Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Dec 2025 1.45 Simple ACUITE BB+ | Stable | Reaffirmed

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Contacts

Mohit Jain Senior Vice President - 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.