RATING RATIONALE
06Feb2023

Udayshivakumar Infra Pvt. Ltd. (erstwhile Udayshivakumar)

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 75.00 Crs. of Udayshivakumar Infra Pvt. Ltd. (erstwhile Udayshivakumar) based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(10 Feb 2022)
Present
Fund Based 14.00 14.00 Long Term BWR BBB- /Stable
Upgrade
BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 61.00 61.00 Short Term BWR A3
Upgrade
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Grand Total 75.00 75.00 (Rupees Seventy Five 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

Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company remains non-cooperative. Further, the company is irregular in the submission of the monthly ‘No Default Statement’ (NDS) in deviation from the extant guidelines. In the absence of adequate information from the entity and lack of cooperation, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, lack of management cooperation, irregular NDS submission, and in the terms of extant regulatory requirements, BWR has downgraded the rating to BWR BB/Stable/A4 and migrated it to the ISSUER NOT COOPERATING* category.

*Issuer did not cooperate; based on best available information 

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally non-cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the 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

Uday Shivakumar, Davangere, Karnataka, was initially incorporated as a proprietorship concern in 1995 with Mr.Uday Shiva Kumar as the proprietor. In 2014, it was reconstituted as a partnership firm with Mr. Udayshivakumar and Ms. Amrutha w/o Mr. Udayshivakumar as partners. In 2019, the company converted into a private limited company by the name of Udayshivakumar Infra Private Limited. The company is a PWD Class-I Contractor and undertakes civil contract works like the construction of bridges, cement concrete roads, canals, and other civil infrastructure works for the Government of Karnataka departments/bodies. The company derives 90% of its revenue from contract business and the remaining ~10% from the sale of ready-mix concrete (RMC) through the three plants located at Davangere, Belgaum, and Shivamogga along with sale of other construction materials etc. 

Mr.Udayshivakumar is the Managing Director and Ms. Amrutha Udayshivakumar is the other Director of the company.

Note: As per information available as on 10Feb2021

 

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. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

ANY OTHER INFORMATION

Nil

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 14.00
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
10Feb2022
BWR BBB- Stable
(Upgrade)
NA
NA
07Dec2020
BWR BB+ Stable
(Reaffirmation)
Non Fund Based ST 61.00
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
10Feb2022
BWR A3
(Upgrade)
NA
NA
07Dec2020
BWR A4+
(Reaffirmation)
Grand Total 75.00 (Rupees Seventy Five Crores Only)
Rating Advisory, as on 27Dec2021
Rating advisory for delay in exercising surveillance exercise.

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

Revathy Thamizharasu

Rating Analyst revathy.t@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Udayshivakumar Infra Pvt. Ltd. (erstwhile Udayshivakumar)
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 State Bank Of India (SBI) Cash CreditSanctioned 14.00 _ 14.00
2 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 61.00 61.00
Total 14.00 61.00 75.00
TOTAL (Rupees Seventy Five Crores Only)
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