Press Release December 05, 2024 OCEAN CONSTRUCTIONS INDIA PRIVATE LIMITED Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.00	ACUITE C | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	75.00	-	ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B+’ (read as ACUITE B plus) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.100.00 crore bank facilities of Ocean Constructions India Private Limited (OCIPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. The downgrade is on basis of CRIF Highmark report which shows recent delays in June 2024 in Demand Loan and the account is classified as Loss.

About the Company

Ocean Constructions India Private Limited (OCIPL) is one of the leading infrastructure construction companies of Mangalore-Karnataka. The company was incorporated in the year 2008 to take over the running business which was carried on by the promoters as a proprietary concern and has been existence in this line of business for more than a decade. The company is concentrated on providing a pro-active and flexible construction service for a number of clients throughout Karnataka including Government PWD and Public Sector Undertakings. The company is a registered for carrying out contracts for various government departments such as PWD Class I Contractor, National Highways and various government departments as a Category I contractor. The promotors of the company are Mr. Sharfudin Ali and his brother Mr. Inayat Ali & Mr. Abid Ali. The company is undertaking Irrigation works, Canal construction & Aqua duct works, Earth works & Land levelling, construction services like Concrete Roads, sub/foundations & superstructures, Laying and construction of roads and infrastructure projects and providing interiors to office complexes.

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 ratingis 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

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	340.50	366.58
PAT	Rs. Cr.	20.17	19.86
PAT Margin	(%)	5.92	5.42
Total Debt/Tangible Net Worth	Times	1.19	0.39
PBDIT/Interest	Times	4.21	8.23

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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 18 Sep 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bank Guarantee (BLR) Short Term 60.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 15.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Secured Overdraft Long Term 10.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) 22 Jun 2023 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Bank Guarantee (BLR) Short Term 60.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Cash Credit Long Term 15.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Secured Overdraft Long Term 10.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) 04 Apr 2022 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 60.00 ACUITE A4+ (Assigned) Cash Credit Long Term 15.00 ACUITE BB | Stable (Assigned) Secured Overdraft Long Term 10.00 ACUITE BB | Stable (Assigned) * The issuer did not co-operate; based on best available information.

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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 Karnataka Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 60.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ ) Karnataka Bank Ltd Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Abhishek Singh 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.