Press Release

Press Release

March 31, 2026

KNK SHIP MANAGEMENT
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.45	ACUITE BBB- \| Reaffirmed & Withdrawn	-
Bank Loan Ratings	29.55	Not Applicable \| Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	50.00	-	-

Rating Rationale

Acuité has reaffirmed and withdrawn its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) on Rs. 20.45 crore bank facilities of KNK Ship Management. The rating is being withdrawn on account of request received from the issuer, and NOC (No Objection Certificate) received from the banker.

Further, Acuité has also withdrawn its rating on the proposed long-term bank facilities of Rs.29.55 Cr. of KNK Ship Management without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer.
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 rating reflects the firm’s stable and improving scale of operations, supported by healthy growth driven by new contracts and revision in manning rates. The operational profile is expected to strengthen further with the addition of two new vessels, which should enhance revenue visibility over the medium term. The financial risk profile remains healthy, characterised by a moderate net worth, comfortable gearing, and debt protection metrics. Liquidity is supported by steady accruals, improved cash balances, and low reliance on working capital limits, providing sufficient financial flexibility. However, the rating continues to be constrained by moderately intensive working capital operations, margin pressures arising from higher employee and operating costs, and the inherent risk of capital withdrawal associated with the partnership structure.

About the Company

KNK Ship Management, a Mumbai-based partnership firm, was established in 2015 by Mr. Capt. Naresh Kalra, Mrs. Prabhat Shobha Kalra, Mr. Devesh Kalra and Ms. Bhavnidhi Kalra. The firm began operations as a proprietorship firm in 1989. It was led by Capt. Naresh Kalra, the firm provides ship management services such as time charter, manpower and recruitment, delivery and voyage, salvage and towing among others. KNK is a certified marine recruiting agent.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of KNK Ship Management to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations and experienced management
The firm was established as a partnership firm in 2015 by Mr. Capt. Naresh Kalra and others. Promoter, Capt. Naresh Kalra, has experience of more than three decades in the marine industry. The extensive experience of Capt. Naresh Kalra has helped the firm forge healthy relationships with its customers including Adani Port and Sez Limited, Deendayal Port Trust and others.

Improvement in scale of operations:
The firm’s revenue improved by ~21% and stood to Rs.108.70 Cr. in FY2025 from Rs.89.77 Cr. in FY2024, driven by new contracts with the Indian Navy and Reliance. During the year, the firm added two new vessels to its fleet, which are yet to be commissioned and are expected to support growth and improve scale in the near to medium term. Despite the increase in turnover, profitability moderated, with operating margins declining to 29.00% in FY2025 from 37.36% in FY2024 due to higher employee and operating expenses. Consequently, PAT margins softened to 11.17% from 13.77% in the previous year.

Healthy financial risk profile:
The financial risk profile of the firm stood healthy marked by moderate networth, low gearing and Healthy debt protection metrics. The net worth of the firm stood at Rs. 54.88 Cr. as on March 31st, 2025, as against Rs. 43.26 Cr. as on March 31st, 2024, due to accretion of profit to reserve. The gearing (debt-equity) of the firm stood below unity at 0.61 times as on March 31, 2025, as compared to 0.77 times as on March 31, 2024. The total debt of the firm stood at Rs. 33.36 Cr. as on March 31, 2025, as against Rs. 33.42 Cr. as on March 31, 2024. Total outside liabilities to tangible net worth (TOL/TNW) of the firm improved and stood at 1.03 times as on March 31, 2025, as against 1.22 times as on March 31, 2024. Further, the debt protection metrics of the firm stood comfortable reflected by debt service coverage ratio of 2.09 times for FY2025 as against 1.22 times for FY2024. The interest coverage ratio stood at 11.62 times for FY2025 as against 8.53 times for FY2024. Net cash accruals to total debt (NCA/TD) stood at 0.68 times in FY2025 as compared to 0.76 times in the previous year.

Weaknesses

Moderately intensive working capital operations:
The working capital operations of the firm is moderately intensive in nature, with Gross Current Assets (GCA) elongating to 181 days in FY2025, compared to 119 days in FY2024. Although debtor days improved, the overall GCA increased mainly due to a significant rise in other current assets. The debtor days stood at 56 days in FY2025 as against 67 days in FY2024. Despite the elongated cycle, reliance on bank limits remains low, with average utilisation of around 37.00% over the six months ending February 2026.

Inherent risk of capital withdrawal in a partnership firm
The Firm is susceptible to the inherent risk of capital withdrawal given its constitution as a partnership. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm.

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

Adequate

The firm’s liquidity position is adequate, marked by generation of sufficient net cash accruals of Rs. 22.64 Cr. in FY2025 as against maturing debt obligations of Rs. 9.38 Cr. in the same tenure. The cash and bank balances of the firm stood at Rs. 3.67 Cr. as on March 31, 2025, as against Rs.0.26 Cr. as on March 31, 2024. The current ratio stood at 1.75 times as on March 31, 2025, as compared to 0.97 times as on March 31, 2024.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	108.70	89.77
PAT	Rs. Cr.	12.15	12.36
PAT Margin	(%)	11.17	13.77
Total Debt/Tangible Net Worth	Times	0.61	0.77
PBDIT/Interest	Times	11.62	8.53

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
25 Mar 2025	Term Loan	Long Term	8.63	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Term Loan	Long Term	3.75	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Term Loan	Long Term	2.37	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Secured Overdraft	Long Term	0.61	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Proposed Long Term Bank Facility	Long Term	29.55	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Working Capital Term Loan	Long Term	1.16	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Working Capital Term Loan	Long Term	1.61	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Covid Emergency Line.	Long Term	1.04	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
	Covid Emergency Line.	Long Term	1.28	ACUITE BBB- \| Stable (Upgraded from ACUITE B+)
13 May 2024	Proposed Term Loan	Long Term	50.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
13 Feb 2023	Proposed Term Loan	Long Term	50.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2026	1.04	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2028	1.28	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	29.55	Simple	ACUITE Not Applicable \| Withdrawn
Bank Of Baroda	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.61	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
INDUSIND BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Apr 2028	8.63	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
Bank Of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2025	3.75	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Sep 2025	2.37	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
Bank Of Baroda	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2026	1.16	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn
Bank Of Baroda	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2027	1.61	Simple	ACUITE BBB- \| Reaffirmed & Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sahil Sawant
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.

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