Press Release May 22, 2025 EMBABY GENERAL FINANCE INDIA PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.00	ACUITE BB | Downgraded | Issuer not co-operating*	-
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has downgraded the long term rating from ‘ACUITE BBB-’ (read as ACUITE triple B minus) to ‘ACUITE BB’ (read as ACUITE double B ) on the Rs. 30.00 crore bank facilities of Embaby General Finance India Private Limited (EGFL). The rating is now flagged as “Issuer Not-Cooperating” and is based on the best available information. The downgrade is on account of information risk. Rationale for the rating Acuite Ratings notes the publication titled "List of NBFCs and ARCs whose Certificate of Registration (CoR) has been cancelled by the RBI", dated May 9, 2025, on the official website of the Reserve Bank of India (RBI), which includes the name of the issuer entity. The issuer has informed Acuite of an interim stay order dated April 8, 2025 (to continue operation for a period of three month) granted by the Honourable High Court of Kerala, allowing it to continue operations temporarily despite the cancellation of its Certificate of Registration by RBI. Acuite considers that any subsequent developments in the judicial proceedings or further regulatory actions could materially influence the rating. At present, Acuite has not received any additional information or clarification regarding the matter. Furthermore, the issuer has not provided financial performance data for FY 2024–25, despite repeated requests. Requests for a management interaction have also not been accommodated. As a result, Acuite has classified the rating under the “Issuer Not Cooperating” (INC) category. Acuite had conducted a rating review during October–November 2024 and published the associated press release on November 29, 2024. During that review period, Acuite was not made aware of the RBI’s communication on the CoR cancellation dated October 8, 2024, or the subsequent stay order dated November 4, 2024, from the Honourable High Court of Kerala. Acuite will continue to monitor all relevant regulatory and judicial developments related to the issuer.

About the Company

­­Embaby General Finance India Private Limited (EGFL) a Non-Banking Financial Company (NBFC) incorporated in November 2008 and based out of Kattappana, in the Idukki district of Kerala, mainly operates by providing loans against collateral of gold jewellery primarily to individuals having limited or no access to formal credit to meet their short term personal requirements. The late promoter, Mr. E.M. Baby, started in this business in the year 1966. Over the years, the company has expanded its presence across two districts (i.e., Idukki and Kottayam) with branch base of 23 as on March 31, 2024. The operations will remain confined to the state of Kerala over the medium term. Apart from loans against gold jewellery, it also provides money transfer facilities in India, foreign inward money transfer services, encashment of foreign currencies, etc. EGFL is the flagship company of the E.M. Baby Group, which also operates in hospitality, trade distribution, finance, industry, money exchange, and general insurance.

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 & reviewof 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 non-cooperation 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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. 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

Other Factors affecting Rating

­None

Key Financials:

­ Particulars Unit FY24 (Actual) FY23 (Actual) Total Assets Rs Cr. 62.92 56.67 Total Income* Rs Cr. 6.20 6.26 PAT Rs Cr. 1.03 1.29 Networth Rs Cr. 21.01 19.99 Return on Average Assets (ROAA) (%) 1.72 2.14 Return on Net Worth (RoNW) (%) 5.02 6.67 Total Debt/Tangible Net Worth (Gearing) Times 1.86 1.70 Gross NPA’s (%) 0.34 2.08 Net NPA’s (%) 0.32 1.76 *Total income equals to Net Interest Income plus other income

Status of non-cooperation with previous CRA

­Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

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 • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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 29 Nov 2024 Working Capital Demand Loan (WCDL) Long Term 0.21 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 0.17 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 0.06 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 0.11 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 2.11 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 0.29 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 1.49 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 0.43 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Proposed Long Term Bank Facility Long Term 1.50 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 4.82 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 12.32 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 4.43 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 0.69 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Demand Loan (WCDL) Long Term 1.37 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) 26 Aug 2024 Cash Credit Long Term 11.60 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 4.71 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.66 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 1.37 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.06 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.06 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.11 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.57 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.63 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 0.63 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Working Capital Demand Loan (WCDL) Long Term 1.49 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 0.33 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Proposed Long Term Bank Facility Long Term 7.78 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) 29 May 2023 Proposed Long Term Bank Facility Long Term 7.78 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 11.60 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 4.71 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.66 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.37 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.06 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.06 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.11 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.57 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.63 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 0.63 ACUITE BBB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.49 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 0.33 ACUITE BBB- | Stable (Reaffirmed) 07 Mar 2022 Cash Credit Long Term 11.75 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 7.07 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 0.97 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 2.00 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 0.46 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 0.69 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 0.69 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 0.74 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.14 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.26 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.26 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 0.52 ACUITE BBB- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 1.45 ACUITE BBB- | Stable (Assigned)

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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 Federal Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.32 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) South Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.82 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Term Loan 27 Feb 2024 Not avl. / Not appl. 15 Feb 2028 0.43 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.43 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.69 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.37 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.17 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.06 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.11 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.11 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.21 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.29 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.49 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )

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

Contacts

Mohit Jain Senior Vice President - Rating Operations Nattasha Venkatesh Associate 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.