Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 24.64 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 39.86 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 64.50 - -
 
Rating Rationale

­Acuité has downgraded its long term rating to ‘ACUITE BB+' (read as ACUITE double B plus)’ from Acuite BBB- (Read as Acuite Triple B minus) & short term rating to ACUITE A4+ ‘(read as ACUITE A four plus)’ from Acuite A3 (Read as Acuite A Three) on the Rs. 64.50 Cr bank facilities of K K Builders Private Limited. This rating is now an indicative rating and is based on best available information
The rating has been downgraded on account of information risk .


About the Company

­KKBPL was incorporated in 1990 in Jamshedpur, Jharkhand 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 Ltd, Central Public Works Department, etc. The company is a Class-1 contractor for government departments.

 
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 noncooperation 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 endeavoured 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 Sensitivities

­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants

­Not Applicable

 
Liquidity Position

­­­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 100.01 89.70
PAT Rs. Cr. 3.19 3.85
PAT Margin (%) 3.19 4.29
Total Debt/Tangible Net Worth Times 0.38 0.39
PBDIT/Interest Times 5.73 7.21
Status of non-cooperation with previous CRA

Care Ratings vide its press release dated 9 August 2023, has mentioned the rating of K K Builders Private Limited to B+/A4 Issuer Not Cooperating as on 9 August 2023.

Crisil Ratings vide its press release dated 11 July 2022, has mentioned the rating of K K Builders Private Limited to B-/A4 Issuer Not Cooperating as on 11 July 2022.

 
Any other information

­None

 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
14 Jun 2022 Term Loan Long Term 1.50 ACUITE BBB- | Negative (Assigned)
Inventory Funding Short Term 4.00 ACUITE A3 (Assigned)
Bank Guarantee Short Term 25.00 ACUITE A3 (Reaffirmed)
Term Loan Long Term 2.00 ACUITE BBB- | Negative (Reaffirmed)
Cash Credit Long Term 6.00 ACUITE BBB- | Negative (Reaffirmed)
Proposed Bank Facility Short Term 0.86 ACUITE A3 (Assigned)
Bank Guarantee Short Term 10.00 ACUITE A3 (Assigned)
Term Loan Long Term 9.07 ACUITE BBB- | Negative (Reaffirmed)
Term Loan Long Term 0.43 ACUITE BBB- | Negative (Reaffirmed)
Term Loan Long Term 5.12 ACUITE BBB- | Negative (Assigned)
Term Loan Long Term 0.52 ACUITE BBB- | Negative (Assigned)
20 Apr 2021 Proposed Bank Facility Short Term 11.50 ACUITE A3 (Reaffirmed)
Cash Credit Long Term 6.00 ACUITE BBB- | Stable (Reaffirmed)
Bank Guarantee Short Term 25.00 ACUITE A3 (Reaffirmed)
28 Jan 2020 Proposed Bank Guarantee Short Term 5.00 ACUITE A3 (Reaffirmed)
Bank Guarantee Short Term 25.00 ACUITE A3 (Reaffirmed)
Cash Credit Long Term 4.50 ACUITE BBB- | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 25.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
OXYZO Financial Services Private Limited Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 4.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 0.86 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 1.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 0.52 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Axis Bank Not Applicable Term Loan Not available Not available Not available 5.12 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Hinduja Leyland Finance Ltd. Not Applicable Term Loan Not available Not available Not available 9.07 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 2.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 0.43 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
­

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