Press Release

Press Release

September 12, 2025

SHRIKISHAN AND COMPANY PRIVATE LIMITED
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	3.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Bank Loan Ratings	2.00	Not Applicable \| Withdrawn	-
Bank Loan Ratings	30.00	-	ACUITE A3 \| Reaffirmed
Bank Loan Ratings	22.00	-	Not Applicable \| Withdrawn
Total Outstanding	33.00	-	-
Total Withdrawn	24.00	-	-

Rating Rationale

Acuite has reaffirmed its the long-term rating of ‘ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating of ACUITE A3' (read as ACUITE A three) on Rs. 33.00 Cr. bank facilities of Shrikishan and Company Private Limited (SKCPL). The outlook remains 'Stable'.
Acuite has withdrawn its long-term and short-term rating on bank facilities of Rs.19.50 Cr. without assigning any rating as the instrument is fully repaid of Shrikishan and Company Private Limited (SKCPL). The rating has been withdrawn on account of the request received from the company and NDC (No Due Certificate) received from the respective banker.
Further, Acuite has withdrawn the short term rating on proposed bank facility of Rs.4.50 Cr. without assigning any rating of Shrikishan and Company Private Limited (SKCPL). The rating has been withdrawn on account of the request received from the company.
The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.

Rationale for Rating
The reaffirmation of rating factors in the steady scale of operations in terms of operating income albeit volatility in profitability margins based on FY25 (Estimated) financials. The order position stands moderate which provides revenue visibility for the coming years along with new bids submitted for procuring work orders. The financial risk profile remains moderate reflected by increase in networth, comfortable gearing and moderate debt protection metrics. In addition, the company’s liquidity profile remains adequate marked by sufficient net cash accruals against debt repayment, moderate bank limit utilization, efficient working capital cycle and high current ratio. The rating is constrained by geographical concentration risk and presence of being in a competitive and fragmented construction industry.

About the Company

Shrikishan and Company Private Limited (SKCPL), incorporated in 2005. The company is engaged in the construction and maintenance of roads and bridges for government bodies. The present directors of the company are Mr. Sharad Goyal and Mr. Sushil Kumar Agrawal. The registered office of the company is in Chhattisgarh.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of SKCPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management
The promoter has decades of experience in construction business. The long-standing experience of the promoters and long track record of operations has helped them to establish comfortable relationships with key suppliers and reputed customers. The day-to-day operations are carried by its directors, Mr. Sharad Goyal and Mr. Sushil Agarwal who has an experience of over two decades in Infrastructure industry. The extensive experience of management has helped company to get tenders on regular basis in Chhattisgarh. Acuite derives comfort from the long experience of the management and believes this will benefit the company going forward.

Steady scale of operations in terms of operating income
SKCPL has achieved revenues of Rs. 127.65 crore in FY2025 (Estd.) as compared Rs. 129.23 crore in FY2024 and Rs. 124.66 crore in FY2023. Revenue growth has remained stagnant due to delays in project execution caused by pending quality checks for completed work orders along with pending land acquisition approvals among others. Further, the company has achieved revenues of Rs.33.93 Cr. till August 2025.
The unexecuted order book stood at Rs. 202.77 Cr. as on August 20, 2025. The OB/OI is 1.59 times (Rs. 202.77 Cr./Rs. 127.65 Cr.). This provides revenue visibility over the medium term. Acuite believes that going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitorable.

Moderate Financial Risk Profile
The company’s financial risk profile is moderate reflected by increase in networth, comfortable gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs.41.70 crore in FY2025 (Estd.) as against Rs.35.80 crore in FY2024 and Rs.25.24 Cr. in FY23 due to accretion of reserves. Gearing of the company stood below unity at 0.26 times in FY2025 (Estd.) as against 0.22 times in FY2024 and 0.53 times in FY23. The unsecured loans (USL) stood at Rs.6.00 Cr. in FY25 (Estd.) as against Rs.6.50 Cr. in FY24 and Rs.6.70 Cr. in FY23. The repayment of USL is based on the financial requirements of the company. The interest coverage ratio of the company stood at 6.37 times in FY25 (Estd.) as against 9.72 times in FY2024 and Debt Service Coverage Ratio stood at 3.41 times in FY25 (Estd.) as against 3.26 times in FY24. Acuite believes that the financial risk profile of the company will remain moderate backed by comfortable capital structure with no major debt funded capex plans.

Efficient Working Capital Cycle
The working capital cycle of the company is efficient marked by Gross Current Assets (GCA) of 59 days in FY25 (Estd.) as compared to 47 days in FY24 and 28 days in FY23. The inventory days increased to 38 days in FY25 (Estd.) from 18 days in FY24 and 27 days in FY23 due to projects being under work in progress. The debtor days stood comfortable at 9 days in FY25 (Estd.) as against 6 days in FY24 and 3 days in FY23 mainly due to efficient collection mechanism. The creditor days stood at 8 days in FY25 (Estd.) as against 35 days in FY24. Acuite believes that the working capital cycle remains efficient over the medium term due to the policies of the management.

Weaknesses

Decline in profitability margins during FY25 (Estimated)
The operating margin of the company stood at 9.48% in FY25 (Estd.) as against 13.79% in FY24 and 1.97 per cent in FY23. The PAT margins stood at 4.62% as on FY2025 (Estd.) as against 8.17% as on FY2024 and (1.26) % in FY23. This volatility in margins is primarily influenced by the company's project selection, bidding strategies and stages of project execution. Additionally, the industry is highly competitive and fragmented, with most projects being tender based, which often leads to aggressive bidding to secure contracts. Acuite believes the volatility in profitability margins will remain key monitorable.

Geographical concentration
The company primarily bids for and secures projects in Chhattisgarh, resulting in a significant geographical concentration of its operations. Any change in government policies in infrastructure and other related industries for the State, might have a direct impact on the credit risk profile of the company and will remain a monitorable.

Rating Sensitivities

Movement in operating income and profitability margins
Geographical concentration
Timely execution of work orders

Liquidity Position

Adequate

The company’s liquidity position is adequate marked by net cash accruals of Rs.8.21 crore in FY25 (Estd.) as against a long-term debt repayment of Rs. 1.06 crore over the same period. The current ratio stood high at 2.62 times in FY25 (Estd.) as compared to 2.55 times in FY24 and 1.33 times in FY23. The cash and bank balances stood at Rs 0.50 crore in FY25 (Estd.) as against Rs. 1.32 crore in FY24 and Rs. 1.00 crore in FY23. The Company also has mutual funds in their investments to the tune of Rs.18.00 Cr. as on March 31, 2025 (Estd.). The company does not have any debt funded capex plans over the medium term. Additionally, the fund-based limit was utilized at 37% per cent for the six-months ended July 2025. However, the company has efficient working capital management as reflected by Gross Current Assets (GCA) of 59 days in FY25 (Estd.) as compared to 27 days in FY24 and 47 days in FY23. Acuite believes that the company will maintain adequate liquidity position due to sufficient net cash accruals against debt repayments, moderate bank limit utilization and current ratio with no debt funded capex plans.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	129.23	124.66
PAT	Rs. Cr.	10.56	(1.57)
PAT Margin	(%)	8.17	(1.26)
Total Debt/Tangible Net Worth	Times	0.22	0.53
PBDIT/Interest	Times	9.72	1.18

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

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
14 Jun 2024	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A3 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	14.50	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	17.50	ACUITE A3 (Assigned)
	Cash Credit	Long Term	2.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
17 Mar 2023	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A3 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	14.50	ACUITE A3 (Assigned)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
08 Mar 2023	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A3 (Reaffirmed)
08 Mar 2023	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	17.50	Simple	Not Applicable\|Withdrawn
Bank of Baroda	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE A3 \| Reaffirmed
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	Not Applicable\|Withdrawn
Not Applicable	Not avl. / Not appl.	Proposed Bank Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.50	Simple	Not Applicable\|Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
Associate 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.