Press Release June 26, 2025 PHPC ASSOCIATES Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	21.79	ACUITE C | Downgraded	-
Bank Loan Ratings	11.21	ACUITE D | Downgraded	-
Total Outstanding	33.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­ACUITE has downgraded its long term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE B' (read as ACUITE B) on the long term bank facilities of Rs.11.21 Crore of PHPC Associates. Further, ­ACUITE has downgraded its long term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE B' (read as ACUITE B) on the long term bank facilities of Rs.21.79 Crore of PHPC Associates . Rationale for downgrade The rating action takes into cognizance the mail received from the issuer stating one to two days delay in servicing of debt obligation of loan account. Further, there is a high likelihood of stretched liquidity in other bank loan facilities as well so on the basis of available information, the rating has been downgraded.

About the Company

­Established in the year 2004 as a proprietorship concern by Mr. Umesh Hegde, Mangalore, Karnataka based PHPC Associates (PA) is engaged in the trading of bitumen, emulsion and furnace oil. The products are used mostly in construction of roads, bridges, fly overs, airport runways, tunnels and dams. The firm purchases emulsion, furnace oil from local suppliers and sells bitumen to the road contractors across South India.

Unsupported Rating

­Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

­Experienced proprietor The proprietor, Mr, Umesh Hegde, has more than 25 years of experience in bitumen trading and transportation through his association with the Hegde Group. The Hegde Group includes Hegde Bulk Carriers and PHPC Associates. Hegde Group is a leading group for bitumen logistics and bitumen trading in southern India. The proprietor is also the founder president of All India Bulk Bitumen Transporters Association. Acuite believes that the extensive experience of the proprietor in bitumen trading shall support the business risk profile to an extent, resulting in steady growth in the scale of operations.

Weaknesses

­Delay in servicing of debt obligations As per the mail received from the issuer, there have been one to two days delay in servicing of debt obligation of loan account.

Rating Sensitivities

­Timely servicing of debt obligations.

Liquidity Position

Poor

The liquidity position of the firm is poor marked by mail received from the issuer stating one to two days delay in servicing of debt obligation of loan account. Further, there is a high likelihood of stretched liquidity in other bank loan facilities as well.

Outlook: Not Applicable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	409.58	486.72
PAT	Rs. Cr.	0.60	1.12
PAT Margin	(%)	0.15	0.23
Total Debt/Tangible Net Worth	Times	4.62	3.19
PBDIT/Interest	Times	6.58	9.19

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 08 Nov 2024 Term Loan Long Term 2.60 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Secured Overdraft Long Term 17.35 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Secured Overdraft Long Term 0.10 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Term Loan Long Term 0.97 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Term Loan Long Term 4.27 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Term Loan Long Term 0.71 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Term Loan Long Term 4.23 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) Term Loan Long Term 2.00 ACUITE B | Stable (Assigned) Proposed Long Term Bank Facility Long Term 0.77 ACUITE B | Stable (Downgraded from ACUITE B+ | Stable) 11 Aug 2023 Term Loan Long Term 13.55 ACUITE B+ | Stable (Assigned) Secured Overdraft Long Term 17.45 ACUITE B+ | Stable (Assigned)

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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 Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.77 Simple ACUITE C | Downgraded ( from ACUITE B ) Canara Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.35 Simple ACUITE C | Downgraded ( from ACUITE B ) Axis Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.10 Simple ACUITE C | Downgraded ( from ACUITE B ) Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Dec 2025 0.97 Simple ACUITE C | Downgraded ( from ACUITE B ) Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2026 4.27 Simple ACUITE D | Downgraded ( from ACUITE B ) Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Apr 2026 0.71 Simple ACUITE D | Downgraded ( from ACUITE B ) Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Sep 2030 6.23 Simple ACUITE D | Downgraded ( from ACUITE B ) Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 04 Apr 2032 2.60 Simple ACUITE C | Downgraded ( from ACUITE B )

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Archita Sharma 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.