Press Release February 24, 2026 N SWARNA ELECTRICAL AND CONTRACTORS Rating Downgraded, Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	9.15	ACUITE D | Downgraded	-
Bank Loan Ratings	0.72	Not Applicable | Withdrawn	-
Bank Loan Ratings	7.00	-	ACUITE A4 | Reaffirmed
Bank Loan Ratings	15.00	-	ACUITE D | Downgraded
Total Outstanding	31.15	-	-
Total Withdrawn	0.72	-	-

Rating Rationale

Acuite has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE C' (read as ACUITE C) and short-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A4' (read as ACUITE A four) on Rs. 24.15 Cr. bank facilities of N Swarna Electrical and Contractors (NSEC). Acuité has reaffirmed the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 7.00 Cr. bank facilities of N Swarna Electrical and Contractors (NSEC). Acuité has also withdrawn its rating on the proposed long-term bank facilities of Rs. 0.72 Cr. of N Swarna Electrical and Contractors (NSEC) without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the company. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.  The issuer has provided the required documents , Hence Acuite has migrated the company from an issuer not cooperating tag to regular.  Rationale for downgrade: The rating is downgraded  on account of recent delays in servicing of debt obligations by N Swarna Electrical and Contractors (NSEC) in their term loan as evident from the loan statement and written feedback received from the lender.

About the Company

­Established in 2000, N Swarna Electrical and Contractors (NSEC) is a proprietorship firm, promoted by Ms. N Swarna. The firm is engaged in executing civil works related to irrigation and electrical works for the state government of Telangana. The registered office is located at Telangana.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has taken the standalone view of the business and financial risk profile of NSEC to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced management with an established track record of operations The firm is promoted by Ms. Swarna and family who possess more than two decades of experience in the industry. Further, top management is supported by the well experienced technical team. Long standing operations in the infrastructure industry helped the firm in successful bidding and completion of the work orders in stipulated time. Acuite believes that the business risk profile of the firm is expected to be comfortable with moderate order book and experience of the management in the industry over the medium term. Steady growth in operating revenue and moderate order book The firm witnessed a significant improvement in its operating revenue marked by y-o-y growth of 26.18 percent in FY 2025, which stood at Rs. 36.27 Cr. in FY 2025 as against Rs. 28.74 Cr. in FY 2024. The significant improvement in revenues is on account of the higher order flow and timely execution of ongoing orders during the year. Further, the firm has achieved revenues of Rs. 30.14 Cr. in 9MFY2026. The firm has an unexecuted order book position of Rs.142.40 Cr. as on 09th January 2026. The firm has L1 orders of around Rs. 26.00-29.00 Cr. from Telangana state government. The operating margin of the firm also stood at 12.68 percent in FY2025 as compared to 14.55 percent in FY2024 the moderation in the profitability is due to volatility in the raw materials cost. Acuite believes that the operating performance is expected to improve on the back of moderate outstanding order book position and L1 orders in pipeline over the near to medium term.

Weaknesses

­Delays in serving debt obligations There have been continuous delays in servicing of term loan obligations by N Swarna Electrical and Contractors (NSEC) in January 2026, as evident from loan account statement and written feedback received from the lending institution. The delays are on account of inadequate funds in the overdraft account on due dates. Weak financial risk profile The financial risk profile of the firm is marked by moderate net worth and weak debt protection metrics. The financial Risk Profile of the firm is moderate marked by net-worth of Rs. 12.60 crore as on 31st March 2025 against Rs. 14.32 Crore as on 31st March 2024. Total drawings for FY2025 are Rs. 1.71 Cr. Further, the total debt of the firm stood at Rs. 22.37 Crore as on 31st March 2025 against Rs. 21.01 Crore as on 31st March 2024. Further, the gearing ratio of the firm stood at 1.77 times in FY2025 against 1.47 times in FY2024. The TOL/TNW ratio stood at 2.06 times in FY2025 against 1.89 times in FY2024. The debt protection metrics stood moderate with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) at 2.97 times and 2.04 times respectively in FY2025 against 2.27 times and 1.78 times respectively in FY2024. Risk of capital withdrawal N Swarna Electrical and Contractors constitution as a proprietary firm is exposed to discrete risks, including the possibility of withdrawal of capital by the proprietor. Moreover, the proprietorship nature partially limits the flexibility to raise the funds vis - à-vis a limited company. Team believes that any substantial withdrawal of capital by the proprietor is likely to have an adverse impact on the capital structure and thereby overall financial risk profile of the firm. Moderate Customer and high geographical concentration risk on the revenue profile The firm executes orders of the government organizations of the Telangana state. The firm has diversified its customer base through handling different types of project works. The firm derives its entire revenues from the state of Telangana. The firm’s ability to work in other states would be a key business monitor able.

Rating Sensitivities

Timely servicing of debt obligations

Liquidity Position

Poor

­The liquidity position of the company is marked poor on account of recent instances of delays in servicing of debt obligation.

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	36.27	28.74
PAT	Rs. Cr.	1.86	1.51
PAT Margin	(%)	5.12	5.25
Total Debt/Tangible Net Worth	Times	1.77	1.47
PBDIT/Interest	Times	2.97	2.27

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 22 Aug 2025 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Bank Guarantee (BLR) Short Term 5.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Secured Overdraft Long Term 9.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.27 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.13 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Proposed Long Term Bank Facility Long Term 2.47 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) 28 May 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 5.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 9.00 ACUITE BB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.43 ACUITE BB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.31 ACUITE BB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.13 ACUITE BB- | Stable (Reaffirmed) 28 Feb 2023 Bank Guarantee (BLR) Short Term 13.50 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 7.50 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.62 ACUITE A4+ (Assigned) Secured Overdraft Long Term 2.42 ACUITE BB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.25 ACUITE BB- | Stable (Reaffirmed) Secured Overdraft Long Term 6.58 ACUITE BB- | Stable (Assigned) 13 Feb 2023 Bank Guarantee (BLR) Short Term 13.50 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 7.50 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 2.42 ACUITE BB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.25 ACUITE BB- | Stable (Reaffirmed)

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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 Indian Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded ( from ACUITE A4 ) INDIAN OVERSEAS BANK Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A4 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.72 Simple ACUITE Not Applicable | Withdrawn Indian Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE D | Downgraded ( from ACUITE C ) Indian Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.15 Simple ACUITE D | Downgraded ( from ACUITE C )

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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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.