PR

Press Release
OCEAN MOTORS PRIVATE LIMITED
July 03, 2023
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	62.50	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	3.50	-	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	66.00	-	-

Rating Rationale

Acuité has downgraded its long term rating to ‘ACUITE BB+' (read as ACUITE double B plus)’ & short term rating to ACUITE A4+ ‘(read as ACUITE A four plus)’on the Rs 66.00 crore bank facilities of Ocean Motors Private Limited. This rating is now an indicative rating and is based on best available information and is on account of information risk .

About the Company

Ocean Motors Private Limited (Erstwhile Patel Service Center) is an Indore-Madhya Pradesh based company was established in the year 2002 as a proprietorship firm which 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 the dealer of Maruti Suzuki India Limited (MSIL). The company is promoted by Mr. Mahendra Patel and Mr. Ravi Nagar. The company has all total 12 showrooms which include 10 showrooms of Maruti Suzuki and 2 showrooms of Nexa. All the showrooms are located in Madhya Pradesh.

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 ratingis based.

Rating Sensitivities

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

Material 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

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	302.99	263.35
PAT	Rs. Cr.	1.40	1.40
PAT Margin	(%)	0.46	0.53
Total Debt/Tangible Net Worth	Times	1.80	0.97
PBDIT/Interest	Times	2.49	2.40

Status of non-cooperation with previous CRA

Not Applicable

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
• Trading Entitie: 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
26 Apr 2022	Term Loan	Long Term	22.85	ACUITE BBB- \| Stable (Reaffirmed)
	Inventory Funding	Long Term	6.10	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Bank Facility	Long Term	18.57	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	1.98	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	5.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	8.00	ACUITE BBB- \| Stable (Reaffirmed)
	Bank Guarantee	Short Term	3.50	ACUITE A3 (Reaffirmed)
09 Feb 2021	Inventory Funding	Long Term	3.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Secured Overdraft	Long Term	5.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Cash Credit	Long Term	10.00	ACUITE BBB- (Withdrawn)
	Inventory Funding	Long Term	12.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	7.90	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Cash Credit	Long Term	8.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Working Capital Term Loan	Long Term	1.27	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	0.32	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Inventory Funding	Long Term	1.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Channel Financing	Long Term	7.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Bank Guarantee	Short Term	3.50	ACUITE A3 (Upgraded from ACUITE A4+)
	Cash Credit	Long Term	10.00	ACUITE BBB- (Withdrawn)
	Inventory Funding	Long Term	10.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Channel Financing	Long Term	5.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	0.43	ACUITE BBB- \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	1.58	ACUITE BBB- \| Stable (Assigned)
	Bank Guarantee	Short Term	3.50	ACUITE A3 (Upgraded from ACUITE A4+)
05 Jan 2021	Working Capital Term Loan	Long Term	2.49	ACUITE BB (Downgraded and Issuer not co-operating*)
	Secured Overdraft	Long Term	6.37	ACUITE BB (Downgraded and Issuer not co-operating*)
	Channel Financing	Short Term	5.00	ACUITE A4+ (Issuer not co-operating*)
	Bank Guarantee	Short Term	3.50	ACUITE A4+ (Issuer not co-operating*)
	Secured Overdraft	Long Term	5.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Inventory Funding	Long Term	1.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	10.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	9.20	ACUITE BB (Downgraded and Issuer not co-operating*)
	Channel Financing	Short Term	7.00	ACUITE A4+ (Issuer not co-operating*)
	Term Loan	Long Term	2.05	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	1.39	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	8.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Inventory Funding	Long Term	3.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	10.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Inventory Funding	Long Term	12.00	ACUITE BB (Downgraded and 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
ICICI Bank Ltd	Not Applicable	Bank Guarantee/Letter of Guarantee	Not Applicable	Not Applicable	Not Applicable	3.50	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
ICICI Bank Ltd	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	8.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
ICICI Bank Ltd	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	6.10	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	18.57	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
ICICI Bank Ltd	Not Applicable	Secured Overdraft	Not Applicable	Not Applicable	Not Applicable	5.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Kotak Mahindra Prime Limited	Not Applicable	Term Loan	Not available	Not available	Not available	22.85	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
ICICI Bank Ltd	Not Applicable	Term Loan	Not available	Not available	Not available	1.98	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Suman Paul Analyst-Rating Operations Tel: 022-49294065 suman.paul@acuite.in	Varsha Bist Senior Manager-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.