Press Release June 17, 2025 OCEAN MOTORS PRIVATE LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	73.39	ACUITE C | Downgraded	-
Bank Loan Ratings	4.11	ACUITE D | Downgraded	-
Bank Loan Ratings	3.50	-	ACUITE A4 | Downgraded
Total Outstanding	81.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB+’ (read as ACUITE double B plus) on Rs. 4.11 Cr. bank facilities of Ocean Motors Private Limited (OMPL). Also, Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB+’ (read as ACUITE double B plus) and downgraded the short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 76.89 Cr. bank facilities of Ocean Motors Private Limited (OMPL). Rationale for downgrade The downgrade is on account of delays identified in servicing of debt obligation by the company in the recent months as reflected in the credit information bureau report (CRIF).

About the Company

Ocean Motors Private Limited (Erstwhile Patel Service Center) is an Indore, Madhya Pradesh based company which was established in the year 2002 as a proprietorship firm and was later reconstituted as a private limited company in the year 2011. The company was initially engaged as a Maruti Authorized Service Station and later in the year 2011, the company became dealer of MSIL. The company is promoted by Mr. Mahendra Patel and Mr. Ravi Nagar. The company owns 13 showrooms which includes 10 showrooms of Arena and 3 showrooms of NEXA, all located in Madhya Pradesh.

Unsupported Rating

­­Not Applicable

Analytical Approach

­­Acuité has considered the standalone business and financial risk profiles of OMPL to arrive at this rating.

Key Rating Drivers

Strengths

Extensive management experience and long track record of operations The company has an established track record of operations of more than two decades in the automobile industry. Further, the company benefits from its association with MSIL and its aggressive marketing strategy. Apart from the sales of new cars, the company has diversified its business into sales of pre-owned cars (true value showrooms), motor driving school, spare parts and services, and acts as a direct selling agent for non-banking financial companies (NBFCs) and insurance companies.

Weaknesses

Delay in servicing of debt obligations Instances of delays in debt-servicing have been reported in the month of December 2024, January 2025, and April 2025 as per the credit bureau information report (CRIF) of the company.

Rating Sensitivities

­Timely servicing of debt obligations

Liquidity Position

Stretched

The company's ­liquidity position is marked stretched due to instances of delays in servicing of debt obligation as per CRIF report.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	537.07	438.59
PAT	Rs. Cr.	1.71	1.53
PAT Margin	(%)	0.32	0.35
Total Debt/Tangible Net Worth	Times	4.77	2.05
PBDIT/Interest	Times	1.95	2.26

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 02 Jan 2025 Bank Guarantee/Letter of Guarantee Short Term 3.50 ACUITE A4+ (Reaffirmed) Inventory Funding Long Term 14.00 ACUITE BB+ | Stable (Reaffirmed) Inventory Funding Long Term 15.00 ACUITE BB+ | Stable (Reaffirmed) Proposed Inventory Funding Long Term 15.00 ACUITE BB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 3.37 ACUITE BB+ | Stable (Reaffirmed) Cash Credit Long Term 13.00 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 4.11 ACUITE BB+ | Stable (Reaffirmed) Inventory Funding Long Term 12.10 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 0.92 ACUITE BB+ | Stable (Reaffirmed) 05 Oct 2023 Bank Guarantee/Letter of Guarantee Short Term 3.50 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 13.00 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 12.84 ACUITE BB+ | Stable (Reaffirmed) Inventory Funding Long Term 6.10 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 1.56 ACUITE BB+ | Stable (Reaffirmed) Inventory Funding Long Term 14.00 ACUITE BB+ | Stable (Reaffirmed) Inventory Funding Long Term 15.00 ACUITE BB+ | Stable (Reaffirmed) Proposed Inventory Funding Long Term 15.00 ACUITE BB+ | Stable (Assigned) 03 Jul 2023 Bank Guarantee/Letter of Guarantee Short Term 3.50 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Cash Credit Long Term 8.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Secured Overdraft Long Term 5.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 22.85 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Inventory Funding Long Term 6.10 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 1.98 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Proposed Long Term Bank Facility Long Term 18.57 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) 26 Apr 2022 Bank Guarantee/Letter of Guarantee Short Term 3.50 ACUITE A3 (Reaffirmed) Cash Credit Long Term 8.00 ACUITE BBB- | Stable (Reaffirmed) Secured Overdraft Long Term 5.00 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 22.85 ACUITE BBB- | Stable (Reaffirmed) Inventory Funding Long Term 6.10 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 1.98 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 18.57 ACUITE BBB- | Stable (Reaffirmed)

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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 ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Axis Bank Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Indusind Bank Ltd Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) ICICI Bank Ltd Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.10 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Not Applicable Not avl. / Not appl. Proposed Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.37 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Kotak Mahindra Prime Limited Not avl. / Not appl. Term Loan 21 Dec 2021 Not avl. / Not appl. 05 Jan 2027 4.11 Simple ACUITE D | Downgraded ( from ACUITE BB+ ) ICICI Bank Ltd Not avl. / Not appl. Term Loan 31 Jan 2020 Not avl. / Not appl. 29 Jun 2026 0.92 Simple ACUITE C | Downgraded ( from ACUITE BB+ )

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Akshit Agrawal 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. 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.