RATING RATIONALE
30Mar2023

Uralungal Labour Contract Co-operative Society Ltd

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 150.00 Crs. of Uralungal Labour Contract Co-operative Society Ltd based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Mar 2022)
Present
Fund Based 150.00 150.00 Long Term BWR B- /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 150.00 150.00 (Rupees One Hundred Fifty Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

BWR has reaffirmed the rating at BWR B- and continued the same under the ISSUER NOT COOPERATING* category.

The rating was last reviewed on 16th March 2022. The rating is due for review on 16th March 2023.

BWR followed up with the company via emails dated 07-Feb-2023, 03-Mar-2023, and 13-Mar-2023 to get updates on the current happenings in the company. However, the company has continued its non-cooperation in providing information for a rating review. BWR also contacted the banker via email, however, the bank has not provided any feedback. However, the company has a valid rating from other CRA

In absence of any information received from the bank & the company, hence, the rating is reaffirmed at  BWR B- and continued under the  ISSUER NOT COOPERATING* category, based on the best available information.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk and non-cooperation by the firm to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Founded in 1925 by social reformer Sri Guru Vagbadananda in the village of Uralungal in Kozhikode, ULCCS is now an ISO 9001:2008 organization engaged in the construction of roads, bridges, buildings and flyovers in Kerala.

It is one of the oldest labour contract societies in India and is considered to be one of the largest worker-owned construction cooperatives in the country. It focuses on construction of roads and bridges in Kerala

Major clients of the society consists of National Highway Department for Highway Projects, Public Works Department of Govt. of Kerala or State Road Development, Ministry of Panchayat Raj for rural roads under PMGSY Scheme and Local Self Governments, Kerala State Sustainable Urban Development Projects for building.

Society has completed over 6500main projects and is currently implementing over 150 projects.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

The company has not co-operated with Infomerics Rating which has been disclosed via rationale dated June 10, 2022. The non-cooperation was on account of the non-receipt of information from the company.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 150.00
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
16Mar2022
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
24Dec2020
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 150.00 (Rupees One Hundred Fifty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Sonali Mittal

Rating Analyst sonali.m@brickworkratings.com

Bal Krishna Piparaiya

Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Uralungal Labour Contract Co-operative Society Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Kozhikode District Co-operative Bank Limited Cash CreditSanctioned 150.00 _ 150.00
Total 150.00 0.00 150.00
TOTAL (Rupees One Hundred Fifty Crores Only)
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