Oval Projects Engineering Disputes CRISIL Rating Downgrade, Claims Factual Incompleteness
Oval Projects Engineering Limited has disputed CRISIL's rating rationale dated March 30, 2026, claiming it's factually incomplete and doesn't reflect their formal withdrawal request initiated in November 2023. CRISIL downgraded the company's ratings to 'B/Stable/A4 Issuer not cooperating' from 'BB/Stable/A4+ Issuer not cooperating', citing non-cooperation despite repeated engagement attempts. The company maintains it submitted banker NOCs in December 2023 and clearly conveyed its decision to discontinue engagement with CRISIL.
*this image is generated using AI for illustrative purposes only.
Oval Projects Engineering Limited has issued a strong clarification disputing CRISIL's rating rationale dated March 30, 2026, claiming the assessment is factually incomplete and doesn't reflect the complete background of their interactions with the rating agency. The company's Managing Director Goutam Debnath signed the clarification on March 31, 2026, emphasizing that they have not consented to the continued publication of the rating.
Company's Formal Dispute Timeline
Oval Projects Engineering has provided a detailed timeline of their dispute with CRISIL, highlighting key interactions that they claim were not adequately reflected in the rating rationale:
| Timeline | Action Taken |
|---|---|
| November 2023 | Formally disputed rating basis, citing inadequate consideration of updated information |
| December 2023 | Submitted banker No Objection Certificates (NOCs) as per CRISIL requirements |
| March 2024 | Reiterated withdrawal request and sought clarification on prescribed procedures |
| March 30, 2026 | CRISIL published disputed rating rationale |
The company maintains that it clearly conveyed its decision to discontinue engagement with CRISIL and formally requested withdrawal of the rating mandate. They argue that the rating rationale doesn't capture this factual position and have reserved their rights in relation to the matter.
CRISIL's Rating Downgrade Details
CRISIL has downgraded Oval Projects Engineering's ratings, citing non-cooperation from the issuer. The rating agency attempted to engage with the company through letters and emails dated February 11, 2026, along with telephonic communications, but received no response.
| Rating Category | Previous Rating | Current Rating |
|---|---|---|
| Long Term Rating | Crisil BB/Stable (Issuer Not Cooperating) | Crisil B/Stable (Issuer Not Cooperating) |
| Short Term Rating | Crisil A4+ (Issuer Not Cooperating) | Crisil A4 (Issuer Not Cooperating) |
| Total Bank Loan Facilities | Rs. 30.00 Crore | Rs. 30.00 Crore |
Financial Performance Overview
Despite the rating dispute, CRISIL provided available financial data for Oval Projects Engineering based on BSE filings:
| Financial Metric | H1 FY26 | FY25 |
|---|---|---|
| Revenue | 62 | 102 |
| Profit After Tax (PAT) | 7 | 9 |
| Operating Profit Margin (OPM) | 20% | 18% |
| Net Profit Margin (NPM) | 12% | 9% |
The company, incorporated in 2013 and currently located in Tripura, is engaged in civil construction works, mainly construction of infrastructural works and turnkey projects in oil and gas & power sectors. It is owned and managed by Mr. Goutam Debnath.
Banking Facilities Breakdown
The company's banking facilities are distributed across multiple lenders, all carrying the 'Issuer Not Cooperating' suffix:
| Facility Type | Amount (Rs. Crore) | Primary Lenders |
|---|---|---|
| Bank Guarantee | 15.00 | HDFC Bank (11), ICICI Bank (2), Indian Bank (2) |
| Cash Credit | 10.65 | ICICI Bank (5), Indian Bank (3.65), HDFC Bank (2) |
| Overdraft Facility | 3.00 | HDFC Bank |
| Term Loan | 1.35 | Indian Bank |
Regulatory Compliance and Stakeholder Communication
The clarification was issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to ensure stakeholders are appropriately informed about the dispute. The company emphasized that the clarification should be read in conjunction with disclosures made by CRISIL and stated they are taking appropriate steps regarding the matter while reserving their rights.
Historical Stock Returns for Oval Projects Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | +3.36% | -13.33% | -31.06% | -46.50% | -46.50% |
How might the ongoing rating dispute and 'Issuer Not Cooperating' status affect Oval Projects Engineering's ability to secure new banking facilities or renew existing ones?
What potential legal or regulatory actions could emerge from this public dispute between Oval Projects Engineering and CRISIL, and how might they impact the credit rating industry?
Will other major banks reconsider their exposure to Oval Projects Engineering given the rating downgrade and the company's apparent non-cooperation with the rating agency?
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