Press Release RPL PROJECTS LIMITED November 08, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	26.75	ACUITE C | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	43.25	-	ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	70.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuite has downgraded the long term rating to ACUITE C (read as Acuite C) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) and short term rating to ACUITE A4 (Acuite A four) from ‘ACUITE A3 (read as ACUITE A three)’ on the Rs.70.00 crore bank facilities of RPL Projects Limited. (RPLPL) The rating has been downgraded on account of information risk and Default information available in public domain. This rating is now an indicative rating, based on the best available information. Rationale for Rating Action The rating action is based on the availbale public infiormation stating default in long term loan account of company

About the Company

­Varanasi based, RPL Projects Limited (RPLPL) was incorporated in the year 2009 and is engaged in removal of overburden from coal mines, logistics of fine coal and trading of coal across the country. RPLPL executes contracts for reputed companies like Western Coalfields Limited, Ultratech Cement Limited and Grasim Industries Limited, to name a few. Currently, the directors of the company are Mr. Naveen Rungta, Mr. Praveen Kumar Rungta, Mr. Santosh Kumar Rungta and Mr. Mahendra Kumar Rungta.

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 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 endeavored 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

Key Financials

Particulars	Unit	FY 21 (Provisional)	FY 20 (Actual)
Operating Income	Rs. Cr.	146.15	167.86
PAT	Rs. Cr.	4.02	4.73
PAT Margin	(%)	2.75	2.82
Total Debt/Tangible Net Worth	Times	1.00	1.41
PBDIT/Interest	Times	4.74	4.01

Key Financials:

­The rated entity has not shared the latest financial statements despite repeated requests.

Status of non-cooperation with previous CRA

ICRA vide its Press Release dated July 14,2022, reaffirmed RPLPL to ICRA B/A4; INC Brickworks vide its Press Release dated March31,2022, Downgraded & Reaffirmed RPLPL to BWR B+/A4; INC

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 02 Sep 2021 Cash Credit Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) Standby Line of Credit Short Term 3.25 ACUITE A3 (Reaffirmed) Cash Credit Long Term 4.50 ACUITE BBB- | Stable (Reaffirmed) Bank Guarantee Short Term 40.00 ACUITE A3 (Reaffirmed) Proposed Bank Facility Long Term 2.25 ACUITE BBB- | Stable (Reaffirmed) 06 Mar 2020 Standby Line of Credit Short Term 3.25 ACUITE A3 (Assigned) Proposed Bank Facility Long Term 2.25 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 4.50 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 20.00 ACUITE BBB- | 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 State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 40.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 4.50 Simple ACUITE C | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE C | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 2.25 Simple ACUITE C | Downgraded | Issuer not co-operating* State Bank of India Not Applicable Stand By Line of Credit Not Applicable Not Applicable Not Applicable 3.25 Simple ACUITE A4 | Downgraded | Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Himanshu . Senior Analyst-Rating Operations Tel: 022-49294065 himanshu.mehta@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.