Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 14.00 ACUITE B+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 11.25 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 25.25 - -
 
Rating Rationale

­Acuité has downgraded the long term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) and the short term rating to ‘ACUITE A4’ (read as ACUITE A four)  from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 25.25 Cr. bank facilities of Jaswantsingh Oberoi Construction Private Limited (JOCPL). The rating continues to be flagged as “Issuer Not Cooperating” and is downgraded on account of information risk.


About the Company

­Established in 1975 as a proprietorship firm under the name ‘Oberoi Constructions’, Jaswantsingh Oberoi Construction Private Limited (JOCPL), a Maharashtra based civil construction firm was converted into a private limited company in 1998. Promoted by Mr. Jaswant Singh Oberoi, Mr. Jagjitsingh Oberoi and Mrs. Harpreetkaur Oberoi, the company is a registered Class–I contractor. JOCPL constructs roads and bridges for government authorities such as Maharashtra Public Works Department (PWD), National Highway Authority of India (NHAI) and Maharashtra State Road Development Corporation (MSRDC). The company is able to maintain its top line and win tenders with an average success ratio of ~65 per cent to 70 per cent.

 
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 endeavored 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 based.

 
Rating Sensitivity

­­"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
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 138.94 157.61
PAT Rs. Cr. 8.38 6.78
PAT Margin (%) 6.03 4.30
Total Debt/Tangible Net Worth Times 1.24 1.35
PBDIT/Interest Times 3.39 4.01
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• 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

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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
27 Feb 2023 Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
Proposed Bank Guarantee Short Term 3.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 2.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
Stand By Line of Credit Short Term 1.25 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
02 Dec 2021 Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
Proposed Bank Guarantee Short Term 3.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 2.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
Stand By Line of Credit Short Term 1.25 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
­

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. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
State Bank of India Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.25 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
­

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