Press Release May 19, 2025 SIDDHARAJ PROJECTS PRIVATE LIMITED Rating Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE BB- | Stable | Upgraded	-
Bank Loan Ratings	5.00	-	ACUITE A4+ | Upgraded
Total Outstanding	20.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to ‘ACUITE BB-’ (read as ACUITE Double B Minus) from 'ACUITE B+' (read as ACUITE B Plus) and the short-term rating to ‘ACUITE A4+’ (read as ACUITE A Four Plus) from 'ACUITE A4' (read as ACUITE A Four) on the Rs.20.00 Cr. bank facilities of Siddharaj Projects Private Limited (SPPL). The outlook is ‘Stable’. Rationale for upgrade The rating upgrade reflects the improvement in the scale of operations and comfortable order book position. The rating also considers the established track record and industry experience of the promoters in the civil construction works. However, the rating strength is partially offset by the moderate financial risk profile, working capital intensive operations and concentrated order book.

About the Company

Gujarat based, Siddharaj Projects Private Limited (SPPL) was incorporated in 2009. The company is engaged in the business of construction and repairing works of canals, roads etc. It is promoted by Mr. Gambhirsinh Balujibhai Barad, Mrs. Shivani Siddhrajsinh Barad, Mrs. Vaishaliba Prashantsinh Barad and Mr. Krishna Anirudhhasinh Barad.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Siddharaj Projects Private Limited (SPPL) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced Management Incorporated in 2009, SPPL is managed by Mr. Gambhirsinh Balujibhai Barad, Mrs. Shivani Siddhrajsinh Barad, Mrs. Vaishaliba Prashantsinh Barad and Mr. Krishna Anirudhhasinh Barad. Although operations started in 2021, the directors have been engaged in the industry for around two decades. Additionally, the company is supported by a qualified management team. The company’s extensive industry experience is evident in their strong and long-standing relationships with customers and suppliers. Acuite believes, the company will benefit from the extensive experience of the directors in maintaining long standing relations with suppliers and customers. Improved operating performance backed by comfortable order book position The company reported a significant increase in revenue, reaching Rs. 51.42 Cr. in FY 2024, up from Rs. 12.37 Cr. in FY 2023. Furthermore, the company reported revenue of Rs. 53.25 Cr. (Est)for FY25. The company has a comfortable order book, with unexecuted orders worth around Rs. 279.54 Cr., which gives revenue visibility for the medium term. The company achieved an operating margin of 12.49 per cent in FY2024, compared to 16.76 per cent in FY2023, while the PAT margin improved to 4.80 per cent in FY2024 from 2.42 per cent in FY2023. The operating margin and PAT margin is estimated to be in the range of 12.00 – 13.00 per cent and 4.00 – 5.00 per cent in FY2025. Acuité believes that SPPLs operating performance would remain stable over the medium term backed by its comfortable order book position.

Weaknesses

Moderate financial risk profile The financial risk profile of SSPL is moderate, marked by moderate net worth, low gearing, and moderate debt protection metrics. The net worth of the company stood at Rs. 21.45 Cr. as of March 31, 2024 compared to Rs. 3.45 Cr. as of March 31, 2023. This improvement in net worth is mainly attributed to the receipt of part premiums from shareholders against the original equity issue. The gearing of the company improved and stood at 0.25 times as of March 31, 2024, compared to 4.17 times as of March 31, 2023. Further, debt protection metrics are moderate, with the debt service coverage ratio (DSCR) at 1.86 times in FY 2024, compared to 1.26 times in the previous year. Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.76 times as of March 31,2024, compared to 5.51 times as of March 31, 2023. The Net Cash Accruals to Total Debt (NCA/TD) stood at 0.55 times in FY 2024, compared to 0.03 times in the previous year. Acuite believes that the financial risk profile of SSPL will remain moderate over the medium term. Working capital intensive operations The company’s operations remained working capital intensive, as reflected in GCA of 245 days in FY2024 against 613 days in FY2023. The Debtors' collection period improved and stood at 73 days in FY2024, as compared to 339 days in FY2023. Inventory days marginally improved to 159 days in FY2024 from 165 days in FY2023. Additionally, the creditors' days stood at 130 days in FY2024, as compared to 260 days in FY2023. The GCA days and working capital cycle have shown year-on-year improvement, primarily due to quicker customer payments, resulting in reduced debtor days. Furthermore, the company's fund-based working capital limit utilization remained moderate, with average utilization of fund-based bank facilities at ~78 per cent over the last 12 months ending March 2025. Acuité believes that the working capital operations of the company will continue to remain intensive due the nature of its business. Concentrated Order Book SPPL has an unexecuted order book of approximately Rs.279.54 crore from 3 projects. Out of the 3 projects the company has 2 projects from a single client. Thus, the company faces a high level of concentration, with around 75 per cent of its unexecuted orders coming from a single customer. Thus, any delays in approvals or funding for this project likely to adversely impact the operating profile of the company.  The concentration risk, however, is mitigated to an extent by the long-standing relationship with the customer.

Rating Sensitivities

Significant improvement in scale of operations and profitability. Working capital management Timely execution of orders in hand Changes in financial risk profile

Liquidity Position

Adequate

The company's liquidity position is adequate, marked by sufficient net cash accruals of Rs. 2.98 Cr. in FY2024 against its no maturing debt obligations in the same year. Further, the company is expected to generate cash accruals in the range of Rs. 3.22 – 4.06 Cr., compared to maturing repayment obligations of around Rs. 0.09 Cr. – 0.10 Cr. over the medium term. The cash and bank balance as of FY24 stood at Rs. 0.07 Cr., compared to Rs. 0.44 Cr. in FY23. The working capital limit utilisation is moderate at 78 per cent over the past 12 months ending March 2025.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	51.42	12.37
PAT	Rs. Cr.	2.47	0.30
PAT Margin	(%)	4.80	2.42
Total Debt/Tangible Net Worth	Times	0.25	4.17
PBDIT/Interest	Times	1.86	1.26

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 19 Feb 2024 Bank Guarantee (BLR) Short Term 5.00 ACUITE A4 (Assigned) Cash Credit Long Term 15.00 ACUITE B+ | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating UCO Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4+ | Upgraded ( from ACUITE A4 ) UCO Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BB- | Stable | Upgraded ( from ACUITE B+ )

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Contacts

Mohit Jain Senior Vice President - Rating Operations Amay Gupta Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.