Press Release September 23, 2025 SHANTI CONSTRUCTION SAMBALPUR PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	8.00	ACUITE BB | Stable | Assigned	-
Bank Loan Ratings	31.00	-	ACUITE A4+ | Assigned
Total Outstanding	39.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned long term rating of 'ACUITE BB' (read as ACUITE double B)  on the Rs. 8 Cr. bank facilities and short term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 31 Cr. bank facilities of Shanti Construction Sambalpur Private Limited. The outlook is 'Stable'. Rationale for rating The rating takes into cognizance experienced management, above average financial risk profile, adequate liquidity, revenue visibility from the order book position; however, these strengths are partly offset by declining revenues albeit increasing operating profitability and intensive working capital cycle.

About the Company

­­Incorporated in 2017, Shanti Construction Sambalpur Private Limited is engaged in civil construction work  of roads, bridges for state and central governments around Orissa. The directors of the company are Mrs. Vandana Bipin Agrawal, Mr. Shivam Agrawal, And Mr. Bipin Kumar Agrawal.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuite has taken standalone business and financial risk profile to arrive at the rating of Shanti Construction Sambalpur Private Limited.

Key Rating Drivers

Strengths

­Benefits derived from ­Experienced Management and long track record of operations The operations are managed by Ms. Vandana Bipin Agrawal, Mr. Shivam Agrwal, And Mr. Bipin Kumar Agrawal who has prior experience in the civil construction. The customers majorly comprises of the Government players like South Eastern Railways (SER), East Coast Railway (ECOR), Rail India Technical and Economical Service (RITES) among others. Acuite believes in the long-track record of operations and experienced management along with the healthy relationship with customers which is expected to benefit the company going forward. Order Book Position providing revenue visibility The unexecuted orders of the company amounts to Rs. 180.50 Cr. as on August 2025. The Order Book/Operating Income stood at 2.68 times. Most of the orders will be completed approximately within 12-24 months providing it revenue visibility. There are some orders for which the work is completed but the final bill is in progress.The order book majorly comprises projects from RITES, ECOR, South Eastern Railways among others. 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. Above Average financial risk profile The financial risk profile of the company is above average marked by improving net worth, moderate gearing and debt protection metrics. The tangible net worth of the company stood at Rs.20.60 Cr. as on March 31, 2025(Prov.) as compared to Rs.16.82 Cr. as on March 31, 2024 due to accretion to reserves. The gearing of the company stood at 0.67 times as on March 31, 2025(Prov.) as compared to 0.57 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.04 times as on March 31, 2025(Prov.) as compared to 1.76 times as on March 31, 2024. The debt protection metrices of the company remain moderate marked by Interest coverage ratio (ICR) of 6.77 times and debt service coverage ratio (DSCR) of 2.16 times for March 31, 2025(Prov.). The net cash accruals to total debt (NCA/TD) stood at 0.39 times in March 31, 2025(Prov.) as compared to 0.52 times as on March 31, 2024. Acuité believes that the financial risk profile will remain above average over the medium term, with steady cash accruals.

Weaknesses

­Decline in ­Revenues albeit improving operating profitability The revenues have declined to Rs. 67.44 Cr. as on March 31, 2025(Prov.) compared to Rs.79.23 Cr. as on March 31, 2024 on account of some bills not raised in FY 2025. The operating profitability margins have increased to 10.40 percent as on March 31, 2025(Prov.) as compared to 8.37 percent as on March 31, 2024 due to decrease in fixed establishment costs. Acuite believes that with the current order book in hand, the Company is expected to scale up operations over the medium term. Intensive Working Capital Cycle The working capital cycle is intensive is reflected by GCA days of 214 days as on March 31, 2025(Prov.) as compared to 99 days as on March 31, 2024. The debtor period stood at 1 day as on March 31, 2025(Prov.) as compared to 2 days as on March 31, 2024.  Further, the inventory days of the company stood at 154 days as on March 31, 2025(Prov.) as compared to 62 days as on March 31, 2024 largely because of unbilled revenues. The other current assets amount to Rs. 16.72 Cr. as on March 31, 2025 (Prov.) which majorly comprises of security deposits as compared to Rs. 5.96 Cr. as on March 31, 2024. The creditors stood at 209 days as on March 31, 2025(Prov.) as compared to 119 days as on March 31, 2024. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Rating Sensitivities

­­Movement in revenues and operating profitability Timely execution of the work orders Working capital cycle

Liquidity Position

Adequate

­­The company has adequate liquidity marked by net cash accruals of Rs 5.43 Cr. as on FY2025(Prov.) as against long term debt repayment of Rs. 1.92 Cr. over the same period. The cash and bank balance stood at Rs. 0.41 Cr. as on March 31, 2025(Prov.) as compared to 4.52 Cr. as on March 31, 2024.Further, the current ratio of the company stood at 1.11 times as on March 31, 2025(Prov.) as compared to 0.98 times as on March 31, 2024. The average fund based bank limit utilization company has been 59 percent utilized for the last six months ended in August 2025. Acuité believes that the liquidity of the company will remain adequate over the near to medium term in the absence of any capex plans.

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.	67.44	79.23
PAT	Rs. Cr.	2.75	2.94
PAT Margin	(%)	4.08	3.71
Total Debt/Tangible Net Worth	Times	0.67	0.57
PBDIT/Interest	Times	6.77	6.78

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

­None

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:Not Applicable

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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 State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Assigned Union Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE A4+ | Assigned Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BB | Stable | Assigned State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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.