Press Release July 25, 2025 TEKNOW OVERSEAS PRIVATE LIMITED Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	4.63	ACUITE BB- | Reaffirmed & Withdrawn	-
Bank Loan Ratings	0.52	Not Applicable | Withdrawn	-
Bank Loan Ratings	8.85	-	ACUITE A4 | Reaffirmed & Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	14.00	-	-

Rating Rationale

­Acuité has reaffirmed and withdrawn the long-term rating of 'ACUITE BB-' (read as ACUITE double B minus) and the short-term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs. 13.48 Cr. bank facilities of Teknow Overseas Private Limited (TOPL). The rating has been withdrawn on account of the request received from the issuer along with no objection certificate from the banker. Further, Acuité has withdrawn its long-term rating on the Rs. 0.52 Cr. bank facilities of Teknow Overseas Private Limited (TOPL) without assigning any rating as it is a proposed facility.  The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for rating The rating reflects moderate business risk profile, financial risk profile and healthy order book with adequate liquidity. However, the rating is constrained due to intensive working capital operations.

About the Company

­New Delhi – Based, Teknow Overseas Private Limited was incorporated in 1991. The company is engaged in the design and civil construction business of Silos, RCC Chimneys, Turbine Generator civil works and Electric Transmission and Distribution Substation. The directors of the company are Mr. Shekhar Gupta, Mr. Madhav Sumant Gupta and Ms. Smita Gupta.

Unsupported Rating

­Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

­Benefits derived from experienced management The promoters, Mr. Shekhar Gupta and Mrs. Smita Gupta are highly qualified and carry rich experience of over three decades in the line of business. Mr. Shekhar Gupta who has done his bachelor’s in Civil Engineering from IIT-Delhi is aware about the technicalities and execution of the projects which benefits the company in winning new work orders. On the other hand Mrs. Smita Gupta who is an MBA in finance takes care of the financial intricacies of the projects. Moderate Revenue and Profitability The company witnessed a decline in its scale of operations marked by a net operating income of Rs. 26.63 Cr. in FY2025 (prov.) as against Rs. 36.53 Cr. in FY2024 due to the execution on the ongoing orders and no new orders being bagged in FY25. Further, the company has an unexecuted order book position to the tune of Rs. 124.14 Crore approximately as on 3rd July 2025 which provides it revenue visibility over the medium term. Going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitor able. The EBITDA margin of the company stood at 16.36 per cent in FY2025 (prov.) as against 13.64 per cent in FY2024 due to reduction in the raw material procurement. The PAT margin of the company stood at 4.39 per cent in FY2025 (prov.) against 4.13 per cent in FY2024. Moderate ­Financial Risk Profile The financial risk profile of the company is moderate marked by a small net-worth of Rs. 12.35 Crore as on 31st March 2025 (prov.) against Rs. 11.18 Crore as on 31st March 2024 due to small accretion of profits to reserves. Further, the total debt of the company stood at Rs. 10.30 Crore as on 31st March 2025 (prov.) against Rs. 9.55 Crore as on 31st March 2024. The capital structure of the company is comfortable marked by gearing ratio which stood at 0.83 times as on 31st March 2025 (prov.) against 0.85 times as on 31st March 2024. Further, the coverage indicators are reflected by interest coverage ratio and debt service coverage ratio at 4.52 times and 1.67 times respectively as on 31st March 2025 (prov.) against 4.37 times and 2.10 times respectively as on 31st March 2024. The TOL/TNW ratio stood at 1.52 times as on 31st March 2025 (prov.) against 1.58 times as on 31st March 2024 and DEBT-EBITDA stood at 2.21 times as on 31st March 2025 (prov.) against 1.81 times as on 31st March 2024.

Weaknesses

­Intensive Working Capital Operations Company has intensive working capital operations as evident from gross current assets (GCA) of 213 days in FY2025 (prov.) as compared to 115 days in FY2024. Intensiveness of Working capital is on account of high Receivable Days. Debtor days stood at 103 days in FY2025 (prov.) as against 48 days in FY2024. Inventory days stood at 57 days in FY25 (prov.) against 39 days in FY24. Whereas, creditor days stood at 112 days in FY2025 (prov.) against 79 days in FY2024. Susceptibility to tender-based operations Revenue and profitability entirely depend on the ability of civil construction companies to win tenders. Also, intense competition among civil contractors prompts players to bid aggressively to bag contracts and thus, restricts the operating margin. Amidst cyclicality inherent in the construction industry, ability to maintain the margin through operating efficiency becomes critical.

Rating Sensitivities

­Not Applicable

Liquidity Position

Adequate

­The liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 3.22 Cr. in FY25 (prov.) against the debt repayment of Rs. 1.52 Cr. for the same period. The company has cash & bank position of Rs. 0.06 Cr. and current ratio stood at 1.58 times for FY25 (prov.). The average non-fund based bank limit utilization is at ~76.31% for the 9 months’ period ending June 2025 and also company does not rely on short term fund based for working capital requirements.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	26.63	36.53
PAT	Rs. Cr.	1.17	1.51
PAT Margin	(%)	4.39	4.13
Total Debt/Tangible Net Worth	Times	0.83	0.85
PBDIT/Interest	Times	4.52	4.37

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 18 Jul 2025 Bank Guarantee (BLR) Short Term 8.85 ACUITE A4 (Reaffirmed) Working Capital Term Loan Long Term 3.80 ACUITE BB- | Stable (Upgraded from ACUITE B-) Term Loan Long Term 0.12 ACUITE BB- | Stable (Upgraded from ACUITE B-) Term Loan Long Term 0.07 ACUITE BB- | Stable (Upgraded from ACUITE B-) Covid Emergency Line. Long Term 0.17 ACUITE BB- | Stable (Upgraded from ACUITE B-) Term Loan Long Term 0.07 ACUITE BB- | Stable (Upgraded from ACUITE B-) Term Loan Long Term 0.40 ACUITE BB- | Stable (Upgraded from ACUITE B-) Proposed Long Term Bank Facility Long Term 0.52 ACUITE BB- | Stable (Upgraded from ACUITE B-) 19 Nov 2024 Bank Guarantee (BLR) Short Term 8.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 5.15 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B) 22 Aug 2023 Bank Guarantee (BLR) Short Term 8.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 5.15 ACUITE B (Reaffirmed & Issuer not co-operating*) 01 Jun 2022 Bank Guarantee (BLR) Short Term 8.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 5.15 ACUITE B (Reaffirmed & Issuer not co-operating*)

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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. 8.85 Simple ACUITE A4 | Reaffirmed & Withdrawn Canara Bank Not avl. / Not appl. Covid Emergency Line. 19 Aug 2021 Not avl. / Not appl. 19 Jun 2026 0.17 Simple ACUITE BB- | Reaffirmed & Withdrawn Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.52 Simple Not Applicable|Withdrawn Canara Bank Not avl. / Not appl. Term Loan 30 Mar 2022 Not avl. / Not appl. 30 Mar 2027 0.07 Simple ACUITE BB- | Reaffirmed & Withdrawn Canara Bank Not avl. / Not appl. Term Loan 12 Mar 2024 Not avl. / Not appl. 12 Mar 2029 0.40 Simple ACUITE BB- | Reaffirmed & Withdrawn Canara Bank Not avl. / Not appl. Term Loan 21 Jul 2022 Not avl. / Not appl. 21 Jul 2027 0.12 Simple ACUITE BB- | Reaffirmed & Withdrawn Canara Bank Not avl. / Not appl. Term Loan 10 Nov 2023 Not avl. / Not appl. 10 Nov 2028 0.07 Simple ACUITE BB- | Reaffirmed & Withdrawn Canara Bank Not avl. / Not appl. Working Capital Term Loan 28 Jun 2021 Not avl. / Not appl. 28 Jun 2028 3.80 Simple ACUITE BB- | Reaffirmed & Withdrawn

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg 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.