RATING RATIONALE

24Mar2026

Mars Developments

Brickwork Ratings assigns the long-term and short-term ratings of BWR BB-/Stable and BWR A4 for the Bank Loan Facilities of Rs. 18.00 Crs. of Mars Developments

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	16.00	Long Term	BWR BB - /Stable Assignment
Fund Based	(8.80)	Short Term	BWR A4 Assignment
Non Fund Based	1.00	Long Term	BWR BB - /Stable Assignment
Non Fund Based	1.00	Short Term	BWR A4 Assignment
Grand Total	18.00	(Rupees Eighteen Crores Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings assigns the long-term and short-term ratings of BWR BB-/Stable and BWR A4 for the Bank Loan Facilities of Rs. 18.00 Crs of Mars Developments.
.
The Rating has factored, inter alia, the moderate orderbook position and financial risk profile of the firm. The rating is constrained by the firms risks associated with the infrastucture industry, large working capital requirements and proprietorship constitution of the firm. Going forward, the ability of the firm to Improve their operational scale, profitability, strengthen liquidity and credit profile would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Mars Developments, business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Moderate financial risk profile :
The firms total operating income increased to Rs. 29.22cr in FY25 from Rs. 26.85cr in FY24. The operating margin of the firm stood at 7.13% in FY25 compared to 6.07% in FY24. The PAT increased to Rs. 0.53cr in FY25 from Rs. 0.49cr in FY24. Additionally, the firm has an outstanding gross order value of Rs. 173.25cr with Rs.75.00cr balance work remaining to be completed. The tangible net worth was at Rs 7.39cr in FY25 and total outside liability to tangible net worth (TOL/TNW) stood at 2.14x in FY25. Debt protection metrics are moderate marked by interest coverage of 1.74 times in FY25.
Moderate order book position :
The firm has a satisfactory unexecuted order book position to the tune of about Rs. 75.00 crore, thereby providing a moderate revenue visibility. In addition, a new order valued at Rs.50.00 crore is in advanced stages of finalization and is expected to be secured in Mar2026 month which would further strengthen the order book position. Further, the order book of the firm is diversified with orders from different players.

Credit Risks:

Inherent risk associated with infrastructure industry :
As the firm's business model is tender-based, its revenue is largely dependent on its ability to successfully win tenders. Additionally, the majority of orders come from government entities, leading to a high reliance on timely approvals for tenders and payments. Cheerans Structurals like the other companies in construction sector is exposed to inherent risks, including potential slowdowns in new order inflows and delays in project execution.
Large working capital requirement :
The firm's operations are working capital-intensive. The conversion cycle of the firm stood elongated as marked by 205 days for FY25, primarily due to a large inventory of approximately 168days driven by substantial work-in-progress. With limited credit from suppliers, the firm relies heavily on bank lines to meet its working capital needs. Going forward, operations are expected to remain working capital-intensive,and effective management of working capital will be a key factor in determining the firm's credit rating.
Proprietorship constitution :
Mars Developments constitutes as a Proprietorship firm, it is inherently subject to specific risks associated with the potential risk of capital withdrawal by its proprietor which could adversely impact its financial stability and operational capabilities. Furthermore, the proprietorship structure exposes to the risk of dissolution in the events such as the death, retirement etc.

ANALYTICAL APPROACH - Standalone

BWR has considered the standalone business and financial risk profiles of Mars Developments.

RATING SENSITIVITIES

Positive

Significant growth in scale of operations with the revenue exceeding 80.00 Cr while maintaining operating margins above 6%.
Sustenance of TOL/ Adj TNW below 1.70x.
Improvement in TNW above Rs.10.00crs.

Negative

Decline in revenues or operating margins below 5%,
Deterioration in overall gearing above 2.50x on a sustained basis.
Stretch in working capital cycle, leading to an increase in working capital borrowing and weakening of financial risk profile.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and cash balance of Rs. 0.28cr in FY25. The firm reported net cash accruals of Rs.0.66cr in FY25 compared to Rs. 0.60cr in FY24 against CPLTD of Rs. 0.08cr in FY24 and FY25. The OPBDIT of Rs. 2.08cr in FY25 was sufficient to cover the finance charges of Rs. 1.19cr in FY25. The current ratio of the company stood at 2.22x in FY24 and 1.71x in FY25. ISCR of the firm stands at 1.74x in FY25. Further, the firms average utilization of cash credit is 89% during the last 12months. Taking all the above points into consideration the firm's liquidity position is defined as adequate.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Construction	Construction	Civil Construction

M/s.Mars Developments is a Proprietorship firm with Mr Saket Jalan being it's sole promoter. The firm is an engineering, procurement and construction (EPC) firm headquartered in Kolkata. With over 20 years of industry experience, it specializes in delivering comprehensive Civil, Electrical, and Fire-Fighting infrastructure solutions across various sectors including Industrial, Commercial, and Government projects. The firm project portfolio spans Residential Townships, high-rise buildings, Industrial Estates, Hotels, Hospitals, Stadiums, Institutions, and Special Economic Zones (SEZ). The firm provides innovative and sustainable infrastructure solutions for the projects.

MARS Developments, having successfully delivered projects in various sectors, has demonstrated its ability to meet the unique demands of Residential, Commercial, and Industrial clients. The firm holds ISO14001:2015, OHSAS 18001:2007, and ISO 9001:2015 certifications, which affirm their dedication to environmental management, occupational health, safety and quality assurance.

ESG Profile

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	26.81	26.85	29.22
EBITDA	Rs.Crs.	1.43	1.63	2.08
PAT	Rs.Crs.	0.39	0.49	0.53
Tangible Net Worth	Rs.Crs.	5.57	5.86	7.39
Total Debt / Tangible Net Worth	Times	1.24	1.58	2.16
Current Ratio	Times	2.25	2.22	1.71

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction include standard covenants normally stipulated for such facilities. It also includes a financial covenant stating that the firm should ensure that Total outside liablity/Adjusted tangible net worth shall be maintained at minimum of 1.7 times during the currency of the ICICI bank loan

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	16.00	BWR BB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(8.80)	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	1.00	BWR BB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	1.00	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		18.00	(Rupees Eighteen Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Mars Developments

ANNEXURE-I

Details of Bank Facilities rated by BWR

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	ICICI Bank	Cash Credit - Sanctioned	12.00	_	12.00	Simple##
	Sub-Limit (WCDL (Sublimit of CC)) - Sanctioned		(8.80)
2	ICICI Bank	Bank Guarantee - Sanctioned	1.00	_	1.00	Simple##
3	ICICI Bank	Derivative Limit - Sanctioned	_	1.00	1.00	Simple##
4	Un tied portion	Proposed loan - Proposed	4.00	_	4.00	Simple##
Total			17.00	1.00	18.00
TOTAL (Rupees Eighteen Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

Print and Digital Media

The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.