Press Release June 04, 2024 K K BUILDERS PRIVATE LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.57	ACUITE C | Downgraded	-
Bank Loan Ratings	9.07	ACUITE D | Downgraded	-
Bank Loan Ratings	35.86	-	ACUITE A4 | Downgraded
Bank Loan Ratings	4.00	-	ACUITE D | Downgraded
Total Outstanding	64.50	-	-

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE C' (read as ACUITE C) from 'ACUITE BB+'  (read as Acuite double B plus) on the Rs. 15.57 Cr. bank facilities and ‘ACUITE D' (read as ACUITE D) from 'ACUITE BB+' (read as Acuite double B plus) on the Rs. 9.07 Cr. bank facilities. Also, Acuité has downgraded its short-term rating to 'ACUITE A4' (read as ACUITE A four)  from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 35.86 Cr. bank facilities and ‘ACUITE D' (read as ACUITE D) from 'Acuite A4+' (read as ACUITE A four plus) on the Rs. 4.00 Cr. bank facilities of K K Builders Private Limited. Rationale for Rating Downgrade The rating downgrade is on account of a delay in servicing debt obligations by K K Builders Private Limited as confirmed by its bankers.

About the Company

­Bihar based K K Builders Private Limited was incorporated in 1990 by Mr. Vikas Singh and his family members. The company is primarily engaged in civil construction work for building roads, bridges, and irrigation segments, mainly in Jharkhand and Bihar. The entity majorly works for the Central Govt. entities such as National Projects Construction Corporation Limited, Central Public Works Department, etc. The company is a Class-1 contractor for government departments. The Directors of the company are Mr. Vikash Singh, Mrs. Urmila Singh, Mrs. Nisha Singh, Mrs. Rekha Singh, Mrs. Anita Singh, Mrs. Ankita Singh, Mrs. Usha Singh, Mrs. Shweta Singh, Mrs. Rashmi Sing and Mr. Kumud Ranjan Pathak.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of K K Builders Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

­Extensive experience of promoters in the industry Bihar based K K Builders Private Limited was incorporated in 1990 by Mr. Vikas Singh and his family members. The promoters have an industry experience of more than thirty years. The entity majorly works for the Central Govt. entities such as National Projects Construction Corporation Limited, Central Public Works Department, etc. The company is a Class-1 contractor for government departments. Acuité believes that K K Builders Private Limited will continue to benefit from the extensive experience of its promoters.

Weaknesses

­Instances of delays in recent past There have been instances of delays in servicing of debt obligations by K K Builders Private Limited in recent past due to stretched liquidity position. The same is also confirmed by its bankers.

Rating Sensitivities

­Timely servicing of debt obligations.

Liquidity Position

Poor

Due to delays in service of debt obligations by the company, the liquidity is marked poor.

Outlook: Not Applicable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	68.84	100.01
PAT	Rs. Cr.	1.78	3.19
PAT Margin	(%)	2.58	3.19
Total Debt/Tangible Net Worth	Times	0.22	0.38
PBDIT/Interest	Times	3.82	5.73

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 07 Sep 2023 Bank Guarantee (BLR) Short Term 25.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Bank Guarantee (BLR) Short Term 10.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Cash Credit Long Term 6.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Inventory Funding Short Term 4.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Proposed Short Term Bank Facility Short Term 0.86 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Term Loan Long Term 1.50 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Term Loan Long Term 9.07 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Term Loan Long Term 2.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Term Loan Long Term 0.43 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Term Loan Long Term 0.52 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) Term Loan Long Term 5.12 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative) 14 Jun 2022 Bank Guarantee (BLR) Short Term 25.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A3 (Assigned) Cash Credit Long Term 6.00 ACUITE BBB- | Negative (Reaffirmed) Inventory Funding Short Term 4.00 ACUITE A3 (Assigned) Proposed Short Term Bank Facility Short Term 0.86 ACUITE A3 (Assigned) Term Loan Long Term 9.07 ACUITE BBB- | Negative (Reaffirmed) Term Loan Long Term 2.00 ACUITE BBB- | Negative (Reaffirmed) Term Loan Long Term 0.43 ACUITE BBB- | Negative (Reaffirmed) Term Loan Long Term 0.52 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 5.12 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 1.50 ACUITE BBB- | Negative (Assigned) 20 Apr 2021 Bank Guarantee (BLR) Short Term 25.00 ACUITE A3 (Reaffirmed) Cash Credit Long Term 6.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Short Term Bank Facility Short Term 11.50 ACUITE A3 (Reaffirmed)

­

Annexure - Details of instruments rated

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 (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4 | Downgraded ( 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. 6.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) OXYZO Financial Services Private Limited Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE D | Downgraded ( from ACUITE A4+ ) Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.86 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2024 1.50 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 16 Jan 2029 0.52 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Dec 2023 5.12 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Hinduja Leyland Finance Ltd. Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Oct 2024 9.07 Simple ACUITE D | Downgraded ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 25 Mar 2026 2.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Jan 2027 0.43 Simple ACUITE C | Downgraded ( from ACUITE BB+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Nidhi Gala Associate - Rating Operations Tel: 022-49294065 nidhi.gala@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Associate Vice President - Rating Operations 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.