Brickwork Ratings downgrades and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 167.00 Crs. of RK Transport and Constructions Ltd. (erstwhile RK Transport & Construction Pvt. Ltd.)
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (31 May 2021) |
Present | ||
Fund Based | 53.00 | 53.00 | Long Term |
BWR A-/Stable
Reaffirmation |
BWR BBB +
/Stable Downgrade/Withdrawal |
(5.00) | (5.00) | ||||
(5.00) | (5.00) | ||||
Non Fund Based | 114.00 | 114.00 | Short Term |
BWR A2
Reaffirmation |
BWR A3 +
Downgrade/Withdrawal |
Grand Total | 167.00 | 167.00 | (Rupees One Hundred Sixty Seven Crores Only) |
Brickwork Ratings has Downgraded the ratings of BWR A-, Stable/BWR A2 on the bank loans of RK Transport and Constructions Ltd. aggregating Rs. 167Crs to BWR BBB+,Stable/BWR A3+ and has simultaneously withdrawn the same based on the request of the Company for withdrawal and no objection certificate from all its lenders.The relevant documents are held on records. The down gradation is based on the non submission of the latest financials and other documents. The withdrawal of ratings is in accordance with BWR's withdrawal policy.
ABOUT THE ENTITYRKTCL was established in 1992 as a partnership firm by Mr. Rajendra Agrawal, Mr. Amar Agrawal and Mr. Sushil Kumar Singhal. It was subsequently reconstituted as a private limited company by Mr. Amar Agrawal and Mr. Sushil Singhal in 2003 in Korba, Chhattisgarh. The company’s registered office is also in Korba. In 2017, the constitution was changed to public limited. RKTCL has two divisions -
● Construction division, which undertakes civil construction works such as the construction of roads, bridges, dams, canals, anicuts, ash dams and ash dykes on a tender basis from the
governments of Chhattisgarh, Maharashtra, Odisha, Madhya Pradesh, Jharkhand and the Central Government.
● Logistics/Transportation division, which undertakes contractual services for the transportation of coal mainly for South Eastern Coalfields Ltd (SECL), Bharat Aluminium Company Ltd (BALCO), Central Coalfields Ltd (CCL), National Thermal Power Corporation (NTPC) and Northern Coalfields Ltd (NCL). RKTCL holds a 48.77% (reduced from 54.08% stake) in its group company Omax Minerals Pvt. Ltd (OMPL), which is also into Coal transportation, Coal Handling and crushing operations.
NA.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 53.00 |
BWR BBB+/Stable
(Downgrade/Withdrawal) |
31May2021 |
BWR A-Stable
(Reaffirmation) |
23Apr2020 |
BWR A-Stable
(Reaffirmation) |
07Jan2019 |
BWR A-Stable
(Reaffirmation) |
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
20Mar2019 |
BWR A-Stable
(Reaffirmation) |
||
FB SubLimit | LT | (5.00) |
BWR BBB+/Stable
(Downgrade/Withdrawal) |
31May2021 |
BWR A-Stable
(Reaffirmation) |
23Apr2020 |
BWR A-Stable
(Reaffirmation) |
07Jan2019 |
BWR A-Stable
(Reaffirmation) |
(5.00) |
BWR BBB+/Stable
(Downgrade/Withdrawal) |
31May2021 |
BWR A-Stable
(Reaffirmation) |
23Apr2020 |
BWR A-Stable
(Reaffirmation) |
07Jan2019 |
BWR A-Stable
(Reaffirmation) |
||
Non Fund Based | ST | 114.00 |
BWR A3+
(Downgrade/Withdrawal) |
31May2021 |
BWR A2
(Reaffirmation) |
23Apr2020 |
BWR A2
(Reaffirmation) |
07Jan2019 |
BWR A2
(Reaffirmation) |
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
20Mar2019 |
BWR A2
(Reaffirmation) |
||
Grand Total | 167.00 | (Rupees One Hundred Sixty Seven Crores Only) |
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.
Analytical Contacts | |
---|---|
Madhu Sonthalia Senior Rating Analyst Board : +91 80 4040 9940 madhusonthalia@brickworkratings.com |
Anuradha Gupta Director - Ratings anuradha.g@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|---|
1 | Axis Bank Ltd. | Cash CreditSanctioned | 10.00 | _ | 10.00 |
2 | Axis Bank Ltd. | Bank GuaranteeSanctioned | _ | 25.00 | 25.00 |
3 | ICICI Bank | Bank GuaranteeSanctioned | _ | 13.00 | 13.00 |
4 | ICICI Bank | Cash CreditSanctioned | 2.00 | _ | 2.00 |
5 | IndusInd Bank | Cash CreditSanctioned | 5.00 | _ | 5.00 |
Sub-Limit (working capital demand loan) Sanctioned | (5.00) | ||||
6 | IndusInd Bank | Bank GuaranteeSanctioned | _ | 15.00 | 15.00 |
7 | Kotak Mahindra Bank | Bank GuaranteeSanctioned | _ | 30.00 | 30.00 |
8 | Kotak Mahindra Bank | Over DraftSanctioned | 1.00 | _ | 1.00 |
9 | Kotak Mahindra Bank | Term LoanSanctioned | 30.00 | _ | 30.00 |
10 | Yes Bank | Bank GuaranteeSanctioned | _ | 31.00 | 31.00 |
Sub-Limit (Cash Credit) Sanctioned | (5.00) | ||||
11 | Yes Bank | Working Capital Demand LoanSanctioned | 5.00 | _ | 5.00 |
Total | 53.00 | 114.00 | 167.00 | ||
TOTAL (Rupees One Hundred Sixty Seven Crores Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,541 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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