Press Release March 20, 2025 UNIQUE STRUCTURES AND TOWERS LIMITED Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.79	ACUITE C | Downgraded	-
Bank Loan Ratings	92.21	-	ACUITE A4 | Downgraded
Total Outstanding	117.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has downgraded its long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BB+' (read as ACUITE double B plus) and the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on Rs.117.00 Cr. bank facilities of Unique Structures and Towers Limited (USTL). Rationale for Downgrade The rating downgrade is based on delays reported in servicing of debt obligation in the credit bureau information report of Unique Structures and Towers Limited (USTL).

About the Company

Unique Structures and Towers Limited (USTL) was incorporated in 1985 by Mr. V.K. Bansal at Chhattisgarh. In 1995, the company started galvanized steel structure fabrication unit for transmission towers. The company has been regularly supplying galvanized steel structures and towers to Power Grid Corporation of India Limited (PGCIL), Indian Railway, Departments of Telecommunication (DoT) among others. USTL also ventured into EPC contract. Currently company is into Engineering, Procurement and Construction (EPC) for Power Grid Corporation India Ltd (PGCIL), Indian Railway and Department of Telecommunication (DoT) among others. The directors of the company are Mr. Ajay Kumar, Mr. Rishi Kumar Bansal, Mrs. Sonika Bansal, Mr. Shree Gopal Kankani and Mr. Sujitkumar Laxminarayan Sharma. The registered office is located Chhattisgarh.

Unsupported Rating

Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Unique Structures and Towers Limited for arriving at the rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operation Established in 1985 by Mr. VK Bansal, USTL, a Chhattisgarh-based company, is engaged into tower fabrication and galvanized steel structures. Currently led by Mr. Rishi Kumar Bansal, the company’s management boasts more than two decade of experience in tower fabrication and LPC business. Other directors, Mr. Ajay Kumar, Mrs. Sonika Bansal, Mr. Shree Gopal Kankani and Mr. Sujitkumar Laxininarayan Sharma, also bring extensive industry experience. The promoters’ enduring expertise and the company’s longstanding operational success have fostered strong relationships with key suppliers and esteemed clients.

Weaknesses

Delays in servicing debt obligations There have been delays reported in servicing debt obligation as per the credit bureau information report (CRIF) of Unique Structures and Towers Limited (USTL). The account has been classified as SMA0 for the months of December 2024 and January 2025. Highly competitive and fragmented nature of industry The sector is marked by the presence of several mid-to large-sized players. The company specialises in tower fabrication and galvanized steel units, mainly for Power Grid Corporation of India (PGCIL), Indian Railways and Department of Telecommunication (DoT). Company faces competition from large players as well as local and small unorganized players. Most of its projects are tender based and face intense competition. This can impact the profitability of the company. However, this risk is mitigated to an extent on account of the experience of the management and the group’s well-established presence.

Rating Sensitivities

Timely servicing of debt obligations

Liquidity Position

Stretched

The liquidity position of the company is marked stretched due to instance of delay in servicing loan obligation in December 2024 and January 2025.

Outlook: Not Applicable

­

Other Factors affecting Rating

­­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	87.01	53.67
PAT	Rs. Cr.	2.09	1.10
PAT Margin	(%)	2.41	2.05
Total Debt/Tangible Net Worth	Times	0.87	0.73
PBDIT/Interest	Times	1.62	1.48

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 29 Aug 2024 Bank Guarantee (BLR) Short Term 35.78 ACUITE A4+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 12.17 ACUITE A4+ (Reaffirmed) Letter of Credit Short Term 2.25 ACUITE A4+ (Reaffirmed) Letter of Credit Short Term 2.25 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 39.76 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 11.00 ACUITE BB+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.50 ACUITE BB+ | Stable (Reaffirmed) Cash Credit Long Term 11.00 ACUITE BB+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.29 ACUITE BB+ | Stable (Reaffirmed) 01 Feb 2024 Letter of Credit Short Term 2.25 ACUITE A4+ (Downgraded from ACUITE A3) Bank Guarantee (BLR) Short Term 39.76 ACUITE A4+ (Downgraded from ACUITE A3) Bank Guarantee (BLR) Short Term 35.78 ACUITE A4+ (Downgraded from ACUITE A3) Proposed Short Term Bank Facility Short Term 9.53 ACUITE A4+ (Downgraded from ACUITE A3) Letter of Credit Short Term 2.25 ACUITE A4+ (Downgraded from ACUITE A3) Cash Credit Long Term 11.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 2.92 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Cash Credit Long Term 11.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 2.51 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) 10 Nov 2022 Letter of Credit Short Term 2.25 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 39.76 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 35.78 ACUITE A3 (Reaffirmed) Proposed Short Term Bank Facility Short Term 9.53 ACUITE A3 (Reaffirmed) Letter of Credit Short Term 2.25 ACUITE A3 (Reaffirmed) Cash Credit Long Term 11.00 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 2.92 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 11.00 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 2.51 ACUITE BBB- | Stable (Reaffirmed)

­

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. 39.76 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) Bank of Baroda Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.78 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Bank of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) Bank of Baroda Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.25 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.25 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.17 Simple ACUITE A4 | Downgraded ( from ACUITE A4+ ) Bank of Baroda Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2026 1.29 Simple ACUITE C | Downgraded ( from ACUITE BB+ ) State Bank of India Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Dec 2026 1.50 Simple ACUITE C | Downgraded ( from ACUITE BB+ )

Contacts

Mohit Jain Senior Vice President - Rating Operations Patel Sneh 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.