Press Release February 07, 2025 SRI SATYA SAI INFRASTRUCTURE PRIVATE LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	42.00	ACUITE C | Downgraded	-
Bank Loan Ratings	41.00	-	ACUITE A4 | Downgraded
Total Outstanding	83.00	-	-
Total Withdrawn	0.00	-	-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) on the Rs. 42.00 Cr. bank facilities and  the short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 41.00 Cr. bank facilities of Sri Satya Sai Infrastructure Private Limited (SSSIPL).  Rationale for downgrade: The downgrade is on account of delay in servicing of debt obligation as confirmed by SSSIPL’s banker.

About the Company

­I­n 1980, Mr. Sathya Murthy Vemula was established a proprietorship concern under the name of VSM Constructions to undertake civil construction works. In 2006, it was converted to a private limited company and renamed as Sri Satya Sai Infrastructure Private Limited (SSSIPL). It is involved in civil construction projects, in particular in the fields of irrigation, water and roads. SSSIPL is registered as a Special Class contractor with major Government departments in Telangana and Andhra Pradesh. SSSIPL’s day-to-day operations are being presently looked after by the director Mr. Sathya Murthy Vemula and his son of Mr. Ranjith Kumar Vemula.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of SSSIPL to arrive at the rating.

Key Rating Drivers

Strengths

­Established track record of promoters in executing civil construction business The promoters, Mr. Sathya Murthy Vemula, have over three decades of experience in the civil construction business. The promoter is further supported by his son, Mr. Rajnath Kumar Vemula, along with other family members. The company's long tenure in the civil construction space has helped it establish strong relationships with various government bodies for repeated business.

Weaknesses

Instance of delay in servicing of debt obligation Instance of delay in servicing of term loan obligation by the company as confirmed by its banker.

Rating Sensitivities

­Regular servicing of debt obligations

Liquidity Position: Stretched

The liquidity position of the company is marked stretched on account of instance of delay in servicing of term loan obligation by the company.

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.	106.85	63.50
PAT	Rs. Cr.	6.02	3.53
PAT Margin	(%)	5.63	5.56
Total Debt/Tangible Net Worth	Times	0.34	0.73
PBDIT/Interest	Times	2.88	2.87

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 Aug 2024 Bank Guarantee (BLR) Short Term 41.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 14.00 ACUITE BB | Stable (Downgraded from ACUITE BB+ | Stable) Secured Overdraft Long Term 3.50 ACUITE BB | Stable (Downgraded from ACUITE BB+ | Stable) Proposed Long Term Bank Facility Long Term 24.50 ACUITE BB | Stable (Downgraded from ACUITE BB+ | Stable) 24 May 2023 Bank Guarantee (BLR) Short Term 41.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 14.00 ACUITE BB+ | Stable (Reaffirmed) Secured Overdraft Long Term 3.50 ACUITE BB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 24.50 ACUITE BB+ | Stable (Reaffirmed) 04 Mar 2022 Bank Guarantee (BLR) Short Term 50.00 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 15.00 ACUITE A4+ (Assigned) Secured Overdraft Long Term 9.00 ACUITE BB+ | Stable (Assigned) Secured Overdraft Long Term 5.00 ACUITE BB+ | Stable (Assigned) Proposed Long Term Bank Facility Long Term 4.00 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 Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 41.00 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.50 Simple ACUITE C | Downgraded ( from ACUITE BB ) Canara Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE C | Downgraded ( from ACUITE BB ) Union Bank of India Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE C | Downgraded ( from ACUITE BB )

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Contacts

Mohit Jain Senior Vice President - Rating Operations Moparthi Anuradha Devi 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.