Press Release March 05, 2024 UNITED GLOBAL CORPORATION LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	36.00	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	132.00	-	ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding	168.00	-	-

Rating Rationale

­­Acuité has downgraded its long-term rating from ‘ACUITE BBB’ (read as ACUITE Triple B) to ‘ACUITE BB+’ (read as ACUITE Double B Plus) and the short-term rating from ‘ACUITE A3+’ (read as ACUITE A three plus) to ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 168.00 Cr. bank facilities of United Global Corporation Limited (UGCL).This rating is now an indicative rating and is based on best available information.The rating has been downgraded on account of information risk.

About the Company

­­Karnataka based United Global Corporation Limited (Formerly known as United Infra Dev elopers Limited) was incorporated in 2009. The company promoted by Mr. M Vamsidhar and Mr. M R Prasad is engaged in undertaking civ il construction works including water supply projects, buildings, irrigation projects, industrial projects, road projects and power transmission projects in Karnataka, Andhra Pradesh, Tamil Nadu, Meghalaya and Telangana. UGCL is a registered Class 1 contractor for various departments including Public Work Departments (PWD), Panchayat Raj Engineering Department (PRED), Public Health Engineering Department among others.

Unsupported Rating

­Not Applicable

Non-cooperation by the issuer/borrower

­Acuité has been requesting for information critical for rating exercise 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.

Liquidity Position

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

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	234.77	203.27
PAT	Rs. Cr.	11.46	9.68
PAT Margin	(%)	4.88	4.76
Total Debt/Tangible Net Worth	Times	0.57	0.58
PBDIT/Interest	Times	2.95	2.85

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 • 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 07 Dec 2022 Cash Credit Long Term 19.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Negative) Cash Credit Long Term 10.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Negative) Cash Credit Long Term 7.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Negative) Bank Guarantee/Letter of Guarantee Short Term 50.00 ACUITE A3+ (Downgraded from ACUITE A2) Bank Guarantee/Letter of Guarantee Short Term 20.00 ACUITE A3+ (Downgraded from ACUITE A2) Bank Guarantee/Letter of Guarantee Short Term 28.00 ACUITE A3+ (Downgraded from ACUITE A2) Letter of Credit Short Term 10.00 ACUITE A3+ (Downgraded from ACUITE A2) Proposed Short Term Bank Facility Short Term 24.00 ACUITE A3+ (Downgraded from ACUITE A2) 08 Sep 2021 Cash Credit Long Term 7.00 ACUITE BBB+ | Negative (Reaffirmed) Cash Credit Long Term 10.00 ACUITE BBB+ | Negative (Reaffirmed) Cash Credit Long Term 19.00 ACUITE BBB+ | Negative (Reaffirmed) Proposed Short Term Bank Facility Short Term 24.00 ACUITE A2 (Reaffirmed) Letter of Credit Short Term 10.00 ACUITE A2 (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 28.00 ACUITE A2 (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 20.00 ACUITE A2 (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 50.00 ACUITE A2 (Reaffirmed) 25 Aug 2021 Cash Credit Long Term 7.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable) Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable) Cash Credit Long Term 19.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable) Proposed Short Term Bank Facility Short Term 24.00 ACUITE A2 (Downgraded from ACUITE A2+) Letter of Credit Short Term 10.00 ACUITE A2 (Assigned) Bank Guarantee (BLR) Short Term 28.00 ACUITE A2 (Downgraded from ACUITE A2+) Bank Guarantee (BLR) Short Term 20.00 ACUITE A2 (Downgraded from ACUITE A2+) Bank Guarantee (BLR) Short Term 50.00 ACUITE A2 (Downgraded from ACUITE A2+)

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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 Canara Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3+ ) ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3+ ) Yes Bank Ltd Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 28.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3+ ) Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 19.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB ) ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB ) Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB ) Yes Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3+ ) Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3+ )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Himanshu Mehta Senior Analyst - Rating Operations Tel: 022-49294065 himanshu.mehta@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.