Press Release POCHAMPAD CONSTRUCTION COMPANY PRIVATE LIMITED September 07, 2023 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	11.00	ACUITE B+ | Reaffirmed | Issuer not co-operating*	-
Bank Loan Ratings	111.00	-	ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	122.00	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+ (read as ACUITE B Plus)’ and the short- term rating of ‘ACUITE A4 (read as ACUITE A four)’ on the Rs. 122.00 Cr bank facilities of Pochampad Construction Company Private Limited (PCCPL). This rating is now an indicative rating and is based on the best available information.

About the Company

­Pochampad Constructions Company Private Limited (PCCPL) was established in 1992 as a proprietory concern by Mr. Rajendra Rao. The proprietorship was later converted to a Partnership firm in the year 2003 and was subsequently converted to a Private Ltd Company in the year 2004. The promoters have long experience in execution of infrastructure projects as Class-1 contractor. PCCPL is engaged in niche area of undertaking water projects like construction of intake wells, and make up water system, lying of pipes, etc. The firm undertakes contracts from government. Directors of Pochampad Construction Company Private Limited are Ranga Rao Meneni, Rajender Rao Velchala, Rekha Velchala.

Non-cooperation by the issuer/borrower

­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also 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 has 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.

All Covenants

­Not Applicable

Liquidity Position

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

Outlook

­None

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Provisional)	FY 21 (Actual)
Operating Income	Rs. Cr.	35.23	68.77
PAT	Rs. Cr.	2.21	4.43
PAT Margin	(%)	6.28	6.45
Total Debt/Tangible Net Worth	Times	0.30	0.35
PBDIT/Interest	Times	2.73	3.39

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 05 Sep 2022 Cash Credit Long Term 9.00 ACUITE B+ | Stable (Downgraded from ACUITE BB+) Bank Guarantee Short Term 28.00 ACUITE A4 (Downgraded from ACUITE A4+) Proposed Bank Guarantee Short Term 64.90 ACUITE A4 (Downgraded from ACUITE A4+) Secured Overdraft Long Term 1.00 ACUITE B+ | Stable (Downgraded from ACUITE BB+) Cash Credit Long Term 1.00 ACUITE B+ | Stable (Downgraded from ACUITE BB+) Bank Guarantee Short Term 8.10 ACUITE A4 (Downgraded from ACUITE A4+) Bank Guarantee Short Term 10.00 ACUITE A4 (Downgraded from ACUITE A4+) 15 Jun 2022 Proposed Bank Guarantee Short Term 19.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 1.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 25.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 37.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 29.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 10.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Secured Overdraft Long Term 1.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) 26 Mar 2021 Bank Guarantee Short Term 29.00 ACUITE A3 (Upgraded from ACUITE A4+) Bank Guarantee Short Term 37.00 ACUITE A3 (Upgraded from ACUITE A4+) Cash Credit Long Term 10.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Secured Overdraft Long Term 1.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Bank Guarantee Short Term 25.00 ACUITE A3 (Upgraded from ACUITE A4+) Proposed Bank Guarantee Short Term 19.00 ACUITE A3 (Upgraded from ACUITE A4+) 30 Jul 2020 Proposed Bank Guarantee Short Term 37.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 1.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 29.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 44.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Secured Overdraft Long Term 8.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Proposed Secured Overdraft Long Term 3.00 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 (BLR) Not Applicable Not Applicable Not Applicable 28.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* Kotak Mahindra Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* HDFC Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 8.10 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating* HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 9.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* ICICI Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Kotak Mahindra Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 64.90 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

Contacts

Analytical Details	Contact Details
Aditya Gupta Vice President - Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Thejaswini P V Senior Analyst - Rating Operations Tel: 022-49294065 thejaswini.pv@acuite.in	Contact Details Mob: +91 8069217456 Email ID: analyticalsupport@acuite.in 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.