Press Release December 20, 2024 CLASS RESTAURANT Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE B- | Reaffirmed | Issuer not co-operating*	-
Total Outstanding	10.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has reaffirmed its long-term rating at ‘ACUITE B- (read as ACUITE B Minus) on Rs.10.00 crore bank facilities of Class Restaurant (CR). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.

About the Company

Class Restaurant (CR) was established in 1999 under the proprietorship of Mr. Surendra Surana. The firm runs a restaurant which is now turned into a Lounge-Bar in FY2023 with Liquor business after the renovation. The restaurant has total seating capacity of 120 people and is covered in 2530 sq. ft. carpet area. The restaurant is situated in Juhu, Mumbai.

About the Group

Incorporated in 1995, Surana Group is a diversified conglomerate founded by Mr. Surendra Surana, Mr. Mahendra Surana, Mrs. Manju Surendrakumar Surana, Mr. Nanda Mahendra Surana, and Mr. Nalin Mahendra Surana. The group is primarily involved in construction and hospitality, with a strong legacy of quality projects and services. It began with Surana Constructions Chembur and Wadala, both renowned in real estate, and Surana Infrastructure Private Limited, contributing to major development projects. The group also owns The Class Restaurant, known for fine dining, and Hotel Carnival, offering luxury accommodations and conference facilities. Additionally, the Surana family promotes The Aurangabad Gymkhana Club Private Limited (AGPL), which began operations in 2005 and provides premium leisure and event facilities with 110 rooms and four banquet halls.

Unsupported Rating

Not Applicable

Non-cooperation by the issuer/borrower

Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavoured to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivities

No information provided by the issuer / available for Acuite to comment upon.

Liquidity Position

No information provided by the issuer / available for Acuite to comment upon

Outlook: Not Applicable

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Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	2.68	1.32
PAT	Rs. Cr.	(1.55)	(0.53)
PAT Margin	(%)	(57.95)	(39.82)
Total Debt/Tangible Net Worth	Times	(1.20)	(1.25)
PBDIT/Interest	Times	0.26	(4.58)

Status of non-cooperation with previous CRA

Not Applicable

Any other information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.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 Sep 2023 Secured Overdraft Long Term 9.00 ACUITE B- | Stable (Reaffirmed) Proposed Long Term Loan Long Term 1.00 ACUITE B- | Stable (Reaffirmed) 15 Jul 2022 Secured Overdraft Long Term 9.00 ACUITE B- | Stable (Reaffirmed) Proposed Long Term Loan Long Term 1.00 ACUITE B- | Stable (Reaffirmed) 13 Apr 2022 Secured Overdraft Long Term 9.00 ACUITE B- (Reaffirmed & Issuer not co-operating*) Proposed Long Term Loan Long Term 1.00 ACUITE B- (Reaffirmed & Issuer not co-operating*) 11 Jan 2021 Proposed Long Term Loan Long Term 1.00 ACUITE B- (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 9.00 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 Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE B- | Reaffirmed | Issuer not co-operating* Union Bank of India Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE B- | Reaffirmed | Issuer not co-operating*

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.  Company name 1 Class Restaurant 2 Hotel Carnival

Contacts

Mohit Jain Senior Vice President - Rating Operations Dheeraj Salian 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.