Press Release September 19, 2025 AVINASH DEVELOPERS PRIVATE LIMITED Rating Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	417.50	ACUITE BB+ | Stable | Upgraded	-
Total Outstanding	417.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long term rating from 'ACUITE C' (read as ACUITE C) to 'ACUITE BB+’ (read as ACUITE double B plus) on the Rs.417.50 Cr. bank facilities of Avinash Developers Private Limited (ADPL). The outlook remains ‘Stable'. Rational for Recommendation The rating upgradation takes into account the curing period of the earlier default in servicing debt obligations of August 2024 by ADPL.  The rating further factors the healthy project execution capabilities demonstrated by way of successful completion of numerous projects. Further, the established brand presence of 'Avinash' in the real estate industry especially in Chhattisgarh & its nearby region. The rating draws comfort from the sustainable improvement in the sales velocity, which is inflated by units sold, growth in customer advances leading to improved cashflows, improving market position reflected through diversified cash flow streams and unencumbered land bank of the group. However, the rating remained constrained by unsold inventory, partially mitigated by the existing demand along with established sales velocity of its projects. Acuite also took into consideration project risk from the soon to be launched projects where land cost remains to be incurred.

About Company

Established in 1997, Avinash Developers Private Limited (ADPL) is a Raipur based real estate builder. The company develops residential & commercial real estate properties and also operates Magneto Mall in Chhattisgarh. The company is managed by Mr. Anand Singhania, Mr. Mukesh Singhania and Mr. Anand Singhania. Currently, the group is developing 12 projects and planning to launch 7 other projects in near to medium term.

About the Group

­The Avinash Group comprises several companies as enumerated below: Raipur based AIM Infrastructure and Developers is a partnership firm established in 2016. The partners of the company are Mr. Anand Singhaniaand Mr. Mukesh Singhania. The focus of the firm is on developing projects with uncompromising standards of quality. It ensures that it meets the special demands of its discerning customers and provide them with the best option in today's real estate market. Established in 2014, Avinash Builders is a partnership firm based in Raipur. The firm is headed by Mr. Anand Singhaniaand Mr. Mukesh Singhania. It is involved in developing residential and commercial real estate in Raipur.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

For arriving at this rating, Acuité has consolidated the business and financial risk profiles of Avinash Developers Private Limited (ADPL), Avinash Builders and AIM Infrastructure and Developers, together referred to as the ‘Avinash Group’ (AG). The consolidation is in the view of common management, strong operational linkages between the entities and similar line of business.

Key Rating Drivers

Strengths

­Experienced Management Avinash group has along operational track record in the real estate industry for more than two decades. In addition to this, the promoters Mr. Anand Kumar Singhania and Mr. Mukesh Singhania are highly experienced and actively involved in the operations of the group. Acuite notes that group is planning to launch seven new projects in near term with the estimated project cost is of Rs. 707 cr. and estimated sales value is over Rs. 1300 cr. Acuité believes that the long operational track record of the group and  promoter’s extensive understanding and expertise will support the group’s growth plans going forward. Steady Cash Flows The group has multiple revenue streams as regular lease rentals from Magento Mall, customer advances from ongoing projects and from unsold inventory both from completed & ongoing projects. The group has committed receivables of Rs. 606 cr. of its sold inventory from ongoing projects Rs. 555.23 cr. has to be incurred in near to medium term. Out of 3,609 units, the group has sold 2,058 units till 31st May 2025. Acuite believes that group's demonstrated execution capabilities and entrenched brand in the market will continue to help in recording improved sales and collections.

Weaknesses

­Exposure to the risks in the Real Estate Industry Real estate projects are prone to varying degrees of uncertainty, both at the macro-level, which affects the economy as a whole and at the sector level. The projects are prone to local, state, and national laws and regulations (governing acquisition, construction and development of land, etc.). Failure to comply with such rules and regulations often lead to delays or in the worst case, complete closure of the project; all of which may lead to a complete or partial loss of capital invested. Real estate sector is also highly susceptible to economic cycles. Health of an economy in terms of GDP, employment data, manufacturing activity, prices of goods, etc. affects the value of real estate in such a way that when economy is sluggish real estate sector is affected in similar way.

Rating Sensitivities

­Timely completion of ongoing projects Timely realization of customer advances pending from sold inventory and sale of unsold inventory.

Liquidity Position

Adequate

The liquidity profile of the group is adequate marked by DSCR of 1.58 times for FY 25 (Prov.) and estimated average DSCR of 3.44 times from FY 26 to FY 29. The additional comfort is demonstrated from the promoter's financial flexibility to infuse unsecured loans time to time whenever required. The liquidity also marked by secured payment mechanism with escrow acccount (in few projects). The group is majorly depending on customer advances and low on external debt. Acuité believes that the liquidity position of the company is expected to remain adequate on account of healthy customer advances and stable cash inflow.

Outlook - Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	251.35	183.28
PAT	Rs. Cr.	33.96	14.56
PAT Margin	(%)	13.51	7.95
Total Debt/Tangible Net Worth	Times	1.53	1.29
PBDIT/Interest	Times	2.06	1.89

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

­Not Applicable.

Any Other Information

­None.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm • Lease Rental Discounting : https://www.acuite.in/view-rating-criteria-106.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 17 Oct 2024 Lease Rental Discounting Long Term 64.20 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Dropline Overdraft Long Term 13.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Proposed Long Term Bank Facility Long Term 103.64 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 37.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 22.80 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 17.60 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Lease Rental Discounting Long Term 34.76 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 85.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Cash Credit Long Term 7.50 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 32.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) 28 Jul 2023 Cash Credit Long Term 7.50 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 80.00 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 5.00 ACUITE BBB | Stable (Assigned) Lease Rental Discounting Long Term 34.76 ACUITE BBB | Stable (Assigned) Term Loan Long Term 17.60 ACUITE BBB | Stable (Assigned) Term Loan Long Term 22.80 ACUITE BBB | Stable (Assigned) Term Loan Long Term 37.00 ACUITE BBB | Stable (Assigned) Proposed Long Term Bank Facility Long Term 103.64 ACUITE BBB | Stable (Assigned) Dropline Overdraft Long Term 13.00 ACUITE BBB | Stable (Assigned) Lease Rental Discounting Long Term 64.20 ACUITE BBB | Stable (Assigned) Term Loan Long Term 32.00 ACUITE BBB | Stable (Assigned) 29 Jun 2023 Cash Credit Long Term 7.50 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 80.00 ACUITE BBB | Stable (Reaffirmed) 31 Mar 2022 Cash Credit Long Term 7.50 ACUITE BBB | Stable (Assigned) Proposed Long Term Bank Facility Long Term 7.50 ACUITE BBB | Stable (Assigned) Proposed Long Term Bank Facility Long Term 72.50 ACUITE BBB | 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 Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) State Bank of India Not avl. / Not appl. Dropline Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) State Bank of India Not avl. / Not appl. Dropline Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 43.84 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) ICICI Bank Ltd Not avl. / Not appl. Inventory Funding Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.67 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) Axis Bank Not avl. / Not appl. Lease Rental Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 130.00 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 59.70 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) HDFC Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Dec 2026 17.38 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) Bank of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2028 78.79 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) HDFC Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 May 2026 8.85 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) Bank of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Apr 2028 15.05 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 31.72 Simple ACUITE BB+ | Stable | Upgraded ( from ACUITE C )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No Name of the companies 1 Avinash Developers Private Limited 2 AIM Infrastructure and Developers 3 Avinash Builders

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Kartik Arora Senior 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.