Press Release K ANANTHA RAO AND CO April 29, 2022 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.00	-	ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Bank Loan Ratings	2.00	ACUITE BB- | Reaffirmed | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	14.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.14 Cr bank facilities of K Anantha Rao & Co (KARC). The rating is flagged as “Issuer Not-Cooperating”.

About the Company

­Andhra Pradesh – based, KARC was established as a partnership firm in 2014. The firm is managed by Mr. K Prasad Babu, second generation entrepreneur. The firm is engaged in civil construction of buildings and irrigation works and its clientele include PWD - Vishakhapatnam, and Srikakulam District of Andhra Pradesh (GoAP). The firm is a Special Class I civil contractor and has its registered office located at Amadalavalasa, Srikakulam district, Andhra Pradesh.

Non-cooperation by the issuer/borrower

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and non cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratingis based.

Rating Sensitivities

­No information provided by the issuer / available for Acuite to comment upon.

Material Covenants

­None

Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.

Outlook

­None

Key Financials:

­The rated entity has not shared the latest financial statements despite repeated requests.

Status of non-cooperation with previous CRA

­None

Any other information

None

Applicable Criteria

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

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 15 Feb 2021 Cash Credit Long Term 2.00 ACUITE BB- | Stable (Upgraded from ACUITE B+ | Stable) Bank Guarantee Short Term 12.00 ACUITE A4+ (Upgraded from ACUITE A4) 23 Dec 2019 Cash Credit Long Term 2.00 ACUITE B+ | Stable (Downgraded from ACUITE BB-) Bank Guarantee Short Term 12.00 ACUITE A4 (Downgraded from ACUITE A4+) 14 Oct 2019 Bank Guarantee Short Term 6.00 ACUITE A4+ (Issuer not co-operating*) Proposed Bank Guarantee Short Term 6.00 ACUITE A4+ (Issuer not co-operating*) Proposed Cash Credit Long Term 2.00 ACUITE BB- (Issuer not co-operating*) 16 Aug 2018 Proposed Cash Credit Long Term 2.00 ACUITE BB- | Stable (Assigned) Bank Guarantee Short Term 6.00 ACUITE A4+ (Assigned) Proposed Bank Guarantee Short Term 6.00 ACUITE A4+ (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.) Rating Indian Bank Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 12.00 ACUITE A4+ | Reaffirmed | Issuer not co-operating* Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 2.00 ACUITE BB- | Reaffirmed | Issuer not co-operating*

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.