Press Release May 06, 2025 CHAITANYA INFRA PRIVATE LIMITED (ERSTWHILE SUKSHETRA INFRA PROJECTS PRIVATE LIMITED) Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	40.00	ACUITE C | Downgraded	-
Bank Loan Ratings	8.00	-	ACUITE A4 | Downgraded
Total Outstanding	48.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB+’ (read as ACUITE Double B Plus) and short-term rating to 'ACUITE A4' (read as ACUITE A Four) from 'ACUITE A4+' (read as ACUITE A Four Plus) on the Rs.48.00 Cr. bank facilities of Chaitanya Infra Private Limited (Erstwhile Sukshetra Infra Projects Private Limited) (CIPPL). Rationale of Rating Downgrade The downgrade is based on delays reported in servicing of debt obligation with the most recent delay occurring in April 2025 as observed in credit bureau information report (CRIF).

About the Company

­Incorporated in 2010, Chaitanya Infra Private Limited (Erstwhile Sukshetra Infra Projects Private Limited) is based in Visakhapatnam, Andhra Pradesh. In December, 2024, the name of the company has been changed to Chaitanya Infra Private Limited from Sukshetra Infra Projects Private Limited. The company is engaged in designing, construction and maintenance of roads, bridges, canals, dams etc. Currently the company is managed by Mr. Padmasri Gannamani, Mr. Brahmaji Gadde and Mr. Bala Subrahmanyam Vallabhaneni.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of CIPPL for arriving at the rating.

Key Rating Drivers

Strengths

­Experienced promotors and established track record of operations ­CIPPL was incorporated by Mr. Brahmaji Gadde, Mrs. Padmasri Gannamani in the year 2010. Mr. Bala Subrahmanyam has joined as a director from October 2023 onwards. Promotors of the company have more than a decade experience in the civil construction industry. The extensive experience of the promotors has helped the company establish long term relationships with its customers and suppliers. CIPPL’s management is supported by a team of professionals with adequate experience in executing civil contract works. In its initial years of operations CIPPL was solely engaged in the execution of residential projects for various private real estate developers in Vizag city. In 2017 SIPPL entered into execution of government projects. Currently, the company is engaged in both residential construction projects and government civil contracts. Government projects received by the company are mostly on sub-contracting basis from companies like NJR Constructions and Raghava constructions.

Weaknesses

­­Instance of delay in servicing of debt obligation  Instances of delays in debt-servicing have been reported in the recent months, latest being April 2025 as per the Credit Bureau Information report (CRIF) of the company. As per CRIF the delays reported in various bank facilities including term loans, however other than the rated facilites. Further, as per the verbal feedback from the banker there have been no delays or default in the rated facilities which is also evident in the CRIF.

Rating Sensitivities

­Timely servicing of debt obligations

Liquidity Position

Stretched

­Liquidity position of the company is marked stretched due to instances of delays in servicing of debt obligation by the company in recent past.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	213.64	94.99
PAT	Rs. Cr.	8.10	4.53
PAT Margin	(%)	3.79	4.77
Total Debt/Tangible Net Worth	Times	1.68	1.92
PBDIT/Interest	Times	3.62	2.06

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 10 May 2024 Proposed Bank Guarantee Short Term 8.00 ACUITE A4+ (Assigned) Cash Credit Long Term 30.00 ACUITE BB+ | Stable (Assigned) Proposed Cash Credit Long Term 10.00 ACUITE BB+ | 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 Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ )

Contacts

Mohit Jain Senior Vice President - Rating Operations Sanidhya Jain 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.