Press Release October 24, 2025 SEWASINGH OBEROI AND CO Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2.00	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	21.00	-	ACUITE A3 | Reaffirmed
Total Outstanding	23.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating of ‘ACUITE A3' (read as ACUITE A three) on the Rs 23.00 Cr. bank facilities of Sewasingh Oberoi and Co. The outlook is 'Stable'. Rationale for rating The rating reaffirmation factors stable growth in scale of operations year-on-year coupled with improvement in profitability. The rating factors unexecuted order book of Rs 213.33 Cr. as on Sep 30, 2025 (2.54 times of FY25 revenues) providing moderate revenue visibility in near to medium term. The rating continues to derive comfort from experienced management established through long track records of operations, moderate financial profile and adequate liquidity position of the firm. However, the rating is constrained by working capital intensive nature of operations, geographical & segmental concentration risk and capital withdrawal risk associated with the partnership firm.

About the Company

Sewasingh Oberoi and Co (SOAC) is a Chhattisgarh based partnership firm established in the year 1997. The firm is primarily engaged into the construction of roads and bridges with major presence in the state of Chhattisgarh. It is registered as a ‘Class A’ contractor with PWD (Public Works Department), Chhattisgarh. The current partners of the firm are Mr. Sewa Singh Oberoi and Mr. Kanwaljit Singh Oberoi.

Unsupported Rating

­Not applicable

Analytical Approach

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

Key Rating Drivers

Strengths

­Long track record of operations supported by experienced management The firm has established a long-standing presence in the construction industry with operations starting from 1997. It is managed by the experienced partners, Mr. Sewa Singh Oberoi and Mr. Kanwaljit Singh Oberoi. The firm has successfully developed a strong customer base comprising of Public Works Department (PWD) and Chhattisgarh Rural Roads Development Agency (CGRRDA)which aids in maintaining regular order flow. Acuité believes that going forward the extensively experienced management and the long operational track record of SOAC will continue to benefit the firm. Stable growth in scale of operations coupled with improvement in profitability The firm reported a growth of 21.42 percent in operating income in FY2025(Prov.), achieving revenue of Rs 84.11 Cr. as compared to Rs 69.27 Cr. in FY2024, primarily on account of increase in execution of work orders. Further, the firm had an unexecuted orderbook to the tune of Rs.213.33 Cr. as on Sep 30, 2025 (2.54 times of FY2025 revenues) which provides moderate revenue visibility in near to medium term. The operating margin of the firm also improved to 10.47 percent in FY2025(Prov.) as compared to 9.38 percent in FY2024. Furthermore, the firm has recorded revenue of Rs. 40.03 Cr. till Sep 30,2025. Acuité believes that, going forward, improvement in the scale of operations coupled with sustained improvement in the profitability margins backed by timely execution of the orders will remain a key sensitivity factor. Moderate financial risk profile The moderate financial risk profile of the firm is marked by improving net worth, low gearing and comfortable debt protection measures. The tangible net worth of the firm increased to Rs.70.25 Cr. as on March 31, 2025 (Prov) as compared to Rs.63.69 Cr. as on March 31, 2024 on account of accretion of profits to reserves. The gearing of the firm remained below unity at 0.28 times as on March 31, 2025 (Prov). Moreover, the debt protection metrics are comfortable with interest coverage ratio at 4.43 times and debt service coverage ratio at 2.70 times for FY2025 (Prov). Acuité believes that the financial risk profile of the firm will continue to remain moderate over the medium term, in absence of any major debt funded capex plans.

Weaknesses

­Working capital intensive nature of operations The working capital-intensive nature of operations of the firm improved but stood high reflected with gross current Asset (GCA) days of 357 days as on March 31, 2025(Prov) as compared to 400 days as on March 31, 2024. The high GCA days are on account of significant advances and security deposits which stood at Rs 42.60 Cr. as on March 31,2025 (Prov.). The inventory days also increased to 162 days March 31, 2025(Prov.) as compared to 142 days as on March 31, 2024 due to significant unbilled revenues. The billing of the firm gets cleared from the department within 7-15 days thus debtor’s days stand at low levels. Capital withdrawal risk associated with partnership firm Being a partnership firm, firm is exposed to the capital withdrawal risk. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm. Geographical and segmental concentration risk The firm is engaged in the execution of construction works which are confined in Chhattisgarh. This leads the firm exposed to geographical concentration. Furthermore, majority of the orders forming a part of the unexecuted order book of SOAC are comprised of road projects. Major presence in the road works leads to segmental concentration for the firm.

Rating Sensitivities

Improvement in scale of operations while sustaining profitability margin Timely execution of orders Further elongation in working capital cycle Significant increase in debt levels or inadequate cash accruals generation impacting the financial risk profile

Liquidity Position

Adequate

­The firm’s liquidity is adequate marked by steady net cash accruals of Rs. 8.81 Cr. as on March 31, 2025 (Prov.) as against Rs 1.65 Cr. long term debt obligation over the same period. The current ratio of the firm stood healthy at 3.19 times as on March 31, 2025(Prov.) However, the cash and bank balance stood low at Rs 0.18 Cr as on March 31,2025(Prov.). Further, the average bank limit utilization for the fund-based & non-fund-based limits stood high at 91.83 percent & 90.67 percent respectively for the last 12 months ending August 2025.

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.	84.11	69.27
PAT	Rs. Cr.	7.03	3.99
PAT Margin	(%)	8.35	5.76
Total Debt/Tangible Net Worth	Times	0.28	0.32
PBDIT/Interest	Times	4.43	4.04

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 01 Oct 2024 Bank Guarantee (BLR) Short Term 21.00 ACUITE A3 (Reaffirmed) Cash Credit Long Term 2.00 ACUITE BBB- | Stable (Reaffirmed) 20 Oct 2023 Bank Guarantee (BLR) Short Term 21.00 ACUITE A3 (Downgraded from ACUITE A3+) Cash Credit Long Term 2.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Negative) 07 Oct 2022 Bank Guarantee (BLR) Short Term 21.00 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 2.00 ACUITE BBB | Negative (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 State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.00 Simple ACUITE A3 | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE BBB- | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Divya Bagmar 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.