RATING RATIONALE
11Jul2022

RK Transport and Constructions Ltd. (erstwhile RK Transport & Construction Pvt. Ltd.)

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.)

Particulars
Facilities** 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)
#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

RATING ACTION / OUTLOOK

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 aggregating Rs. 167Crs to BWR BBB+,Stable/BWR A3+ and has simultaneously withdrawn the same based on the request of the Company for withdrawal and no objection certificate from all its lenders.The relevant documents are held on records.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 ENTITY

RKTCL 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.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

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)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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
RK Transport and Constructions Ltd. (erstwhile RK Transport & Construction Pvt. 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 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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