Press Release ORIENTAL ENGINEERING WORKS PRIVATE LIMITED April 11, 2023 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.33	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	5.00	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	29.33	-	-

Rating Rationale

­Acuité has downgraded its long-term rating from ‘ACUITE BBB-’ (read as ACUITE triple B minus) to ‘ACUITE BB+’ (read as ACUITE double B plus) and short term rating from ‘ACUITE A3’ (read as ACUITE A three) to 'ACUITE A4+ (read as ACUITE A four plus) on the Rs.29.33 Cr. bank facilities of Oriental Engineering Works Private Limited. This rating is now an indicative rating and is based on best available information. Rating has been downgraded on account of information risk.

About the Company

­Haryana-based Oriental Engineering Works Private Limited (OEWPL) was incorporated in 1933 as Karma Engineers in Lahore – India (undivided). Currently, the company is promoted by Mr. Raman Saluja, Mr. Satish Chandra Saluja, Mr. Gayatri Saluja, Ms. Divya Khanna, Ms. Sunita Saluja, and Ms. Samira Saluja. OEWPL is into the manufacturing of hydraulic jacks, cylinders, pumps, power packs among others for the construction and mining industries via the manufacturing facilities located in Yamuna Nagar (Haryana).

Non-cooperation by the issuer/borrower

­Acuité has been requesting for Banker detaills, Latest No Default Statement operational data and updated YTD data from the rated entity. However, the issuer / borrower failed to submit such information before 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 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.

Material Covenants

­None

Liquidity Position

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

Outlook

­Not Applicable.

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	54.07	53.28
PAT	Rs. Cr.	3.48	2.56
PAT Margin	(%)	6.43	4.81
Total Debt/Tangible Net Worth	Times	0.43	0.38
PBDIT/Interest	Times	6.98	8.12

Status of non-cooperation with previous CRA

­None

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 24 Jan 2022 Standby Line of Credit Short Term 0.50 ACUITE A3 (Reaffirmed) Working Capital Term Loan Long Term 1.29 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 0.80 ACUITE BBB- (Withdrawn) Bank Guarantee Short Term 4.50 ACUITE A3 (Reaffirmed) Term Loan Long Term 1.50 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 9.00 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 0.94 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 0.70 ACUITE BBB- (Withdrawn) Proposed Term Loan Long Term 11.60 ACUITE BBB- | Stable (Reaffirmed) 03 Jan 2020 Term Loan Long Term 0.70 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Cash Credit Long Term 5.50 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Bank Guarantee Short Term 5.37 ACUITE A3 (Upgraded from ACUITE A4+) Letter of Credit Short Term 4.95 ACUITE A3 (Upgraded from ACUITE A4+) Proposed Term Loan Long Term 2.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Term Loan Long Term 0.80 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Proposed Working Capital Demand Loan Long Term 5.71 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Standby Line of Credit Short Term 0.50 ACUITE A3 (Upgraded from ACUITE A4+) Bank Guarantee Short Term 3.80 ACUITE A3 (Upgraded from ACUITE A4+)

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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 State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 4.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 9.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 11.60 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Stand By Line of Credit Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Term Loan 29 Jun 2021 7.65 30 Jun 2025 1.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Term Loan 10 Sep 2018 11.45 30 Apr 2026 0.94 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Working Capital Term Loan 29 Jun 2021 7.40 30 Jun 2025 1.29 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 Satyam . Analyst-Rating Operations Tel: 022-49294065 satyam.saxena@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.