Press Release

Dhatarwal Construction Company Private Limited

June 17, 2022
Ratings
Amount
Facilities/Instruments Rating1 Rating Action
(₹ crore)
CARE BB+; Stable; Rating continues to
ISSUER NOT COOPERATING* remain under ISSUER
Long Term Bank Facilities 7.50
(Double B Plus; Outlook: Stable NOT COOPERATING
ISSUER NOT COOPERATING*) category
CARE BB+; Stable / CARE A4+;
Rating continues to
ISSUER NOT COOPERATING*
Long Term / Short Term remain under ISSUER
60.78 (Double B Plus; Outlook: Stable/
Bank Facilities NOT COOPERATING
A Four Plus
category
ISSUER NOT COOPERATING*)
68.28
(₹ Sixty-Eight Crore
Total Bank Facilities
and Twenty-Eight
Lakhs Only)
Details of instruments/facilities in Annexure-1

Detailed Rationale & Key Rating Drivers

CARE Ratings Ltd. had, vide its press release dated March 31, 2021, placed the rating(s) of Dhatarwal Construction Company
Private Limited (DCCPL) under the ‘issuer non-cooperating’ category as DCCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DCCPL
continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a
letter/email dated February 14, 2022, February 24, 2022, March 06, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.’s opinion is not sufficient to arrive at a fair rating.

Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution
while using the above rating(s).

Detailed description of the key rating drivers

Please refer to PR dated March 31, 2021

Analytical approach: Standalone

Applicable Criteria
Policy in respect of Non-cooperation by issuer
Policy on default recognition
Criteria on assigning outlook and credit watch

About the Company

Dhatarwal Construction Company Private Limited was originally established as a proprietorship firm in 1991 by the name of
“Rajbir Singh Contractor” wherein Mr. Rajbir Singh was proprietor. Due to scale up of business, in 2009, Mr. Rajbir Singh and
Mr Narinder Singh incorporated a private limited concern named as “Dhatarwal Construction Company Private Limited (DCCPL)”
which took over the running business of proprietorship firm. DCCPL is engaged into construction and development of road
projects on EPC basis for government departments.

Brief Financials (₹ crore) FY20 (A) FY21 (A) FY22 (Prov.)

Total operating income 200.73 205.05 NA
PBILDT 16.50 16.10 NA
PAT 9.29 9.63 NA
Overall gearing (times) 0.98 0.72 NA
Interest coverage (times) 6.26 6.40 NA
A – Audited, Prov. – Provisional, NA – Not available

1Complete definition of the ratings assigned are available at www.careedge.in and other CARE publications
*Issuer did not cooperate; Based on best available information

1 CARE Ratings Limited

 Press Release

Status of non-cooperation with previous CRA: Not applicable

Any other information: Not applicable

Rating History for last three years: Please refer Annexure-2

Covenants of rated instrument/facility: Please refer Annexure-3

Complexity level of various instruments rated for this company: Please refer Annexure-4

Annexure-1: Details of Instruments/Facilities

Size of the
Name of the Date of Coupon Maturity Rating Assigned along with
ISIN Issue
Instrument Issuance Rate Date Rating Outlook
(₹ crore)
Fund-based - LT-Cash CARE BB+; Stable; ISSUER NOT
- - - - 7.50
Credit COOPERATING*
Non-fund-based - LT/ CARE BB+; Stable / CARE A4+;
- - - - 56.00
ST-Bank Guarantee ISSUER NOT COOPERATING*
Non-fund-based - LT/ CARE BB+; Stable / CARE A4+;
- - - - 4.78
ST-Bank Guarantee ISSUER NOT COOPERATING*
*Issuer did not cooperate; Based on best available information

Annexure-2: Rating History of last three years

Current Ratings Rating History
Name of the
Date(s) and Date(s) and Date(s) and Date(s) and
Sr. Instrument/ Amount
Rating(s) Rating(s) Rating(s) Rating(s)
No. Bank Type Outstanding Rating
assigned in assigned in assigned in assigned in
Facilities (₹ crore)
2022-2023 2021-2022 2020-2021 2019-2020
1)CARE BB+;
CARE Stable;
BB+; ISSUER NOT
Fund-based - Stable; COOPERATIN
1 LT-Cash LT 7.50 ISSUER - - G* -
Credit NOT (31-Mar-21)
COOPERA 2)CARE BBB-;
TING* Stable
(03-Apr-20)
1)CARE BB+;
CARE Stable / CARE
BB+; A4+; ISSUER
Stable / NOT
Non-fund-
CARE COOPERATIN
based - LT/ LT/
2 56.00 A4+; - - G* -
ST-Bank ST
ISSUER (31-Mar-21)
Guarantee
NOT 2)CARE BBB-;
COOPERA Stable / CARE
TING* A3
(03-Apr-20)
1)CARE BB+;
CARE Stable / CARE
BB+; A4+; ISSUER
Stable / NOT
Non-fund-
CARE COOPERATIN
based - LT/ LT/
3 4.78 A4+; - - G* -
ST-Bank ST
ISSUER (31-Mar-21)
Guarantee
NOT 2)CARE BBB-;
COOPERA Stable / CARE
TING* A3
(03-Apr-20)
*Issuer did not cooperate; Based on best available information

Annexure-3: Detailed explanation of the covenants of the rated instruments/facilities: Not applicable

2 CARE Ratings Limited

 Press Release

Annexure-4: Complexity level of various instruments rated for this company

Sr. No. Name of Instrument Complexity Level
1 Fund-based - LT-Cash Credit Simple
2 Non-fund-based - LT/ ST-Bank Guarantee Simple

Annexure-5: Bank lender details for this company

To view the lender wise details of bank facilities please click here

Note on complexity levels of the rated instruments: CARE Ratings has classified instruments rated by it on the basis of
complexity. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any
clarifications.
Contact us
Media Contact
Name – Mr. Mradul Mishra
Contact no. - +91-22-6754 3596
Email ID - [email protected]

Analyst Contact
Name - Shachee Nakul Vyas
Contact no. - 91-079-40265665
Email ID - [email protected]

Relationship Contact
Name -Swati Agrawal
Contact no. - 91-11-45333237
Email ID: [email protected]

About CARE Ratings Limited:

Established in 1993, CARE Ratings Ltd. is one of the leading credit rating agencies in India. Registered under the Securities and
Exchange Board of India (SEBI), it has also been acknowledged as an External Credit Assessment Institution (ECAI) by the
Reserve Bank of India (RBI). With an equitable position in the Indian capital market, CARE Ratings Limited provides a wide
array of credit rating services that help corporates to raise capital and enable investors to make informed decisions backed by
knowledge and assessment provided by the company.
With an established track record of rating companies over almost three decades, we follow a robust and transparent rating
process that leverages our domain and analytical expertise backed by the methodologies congruent with the international best
practices. CARE Ratings Limited has had a pivotal role to play in developing bank debt and capital market instruments including
CPs, corporate bonds and debentures, and structured credit.

Disclaimer
The ratings issued by CARE Ratings Limited are opinions on the likelihood of timely payment of the obligations under the rated
instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or
hold any security. These ratings do not convey suitability or price for the investor. The agency does not constitute an audit on
the rated entity. CARE Ratings Limited has based its ratings/outlooks based on information obtained from reliable and credible
sources. CARE Ratings Limited does not, however, guarantee the accuracy, adequacy or completeness of any information and is
not responsible for any errors or omissions and the results obtained from the use of such information. Most entities whose bank
facilities/instruments are rated by CARE Ratings Limited have paid a credit rating fee, based on the amount and type of bank
facilities/instruments. CARE Ratings Limited or its subsidiaries/associates may also be involved with other commercial
transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE Ratings Limited
is, inter-alia, based on the capital deployed by the partners/proprietor and the current financial strength of the firm. The
rating/outlook may undergo a change in case of withdrawal of capital or the unsecured loans brought in by the
partners/proprietor in addition to the financial performance and other relevant factors. CARE Ratings Limited is not responsible
for any errors and states that it has no financial liability whatsoever to the users of CARE Ratings Limited’s rating.
Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve
acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the
ratings may see volatility and sharp downgrades.

**For detailed Rationale Report and subscription information, please contact us at www.careedge.in

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