Press Release FUTURE BRANDS LIMITED February 23, 2023 Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	806.25	ACUITE B+ | Reaffirmed | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	806.25	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 806.25 crore Non Convertible Debentures of Future Brands Limited (FBL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company

­Future Brands Limited (FBL) was incorporated in 2006 and is a part of Future group of companies - one of India's largest retailers. FBL is 98.06 per cent owned by Future Ideas Company Limited and Surplus Finvest Private Limited as on 31 March, 2019 (Future group companies). It is a brand & Intellectual Property right company which focuses on creating, developing, managing, nurturing and acquiring brands.

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 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:

­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 endeavored 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 Sensitivity

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

Material Covenants

­Not Applicable

Liquidity Position

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

Outlook

­Not Applicable

Other Factors affecting Rating

­Not Applicable

Key Financials

Particulars	Unit	FY 21 (Actual)	FY 20 (Actual)
Operating Income	Rs. Cr.	39.94	113.60
PAT	Rs. Cr.	(58.05)	(21.54)
PAT Margin	(%)	(145.35)	(18.96)
Total Debt/Tangible Net Worth	Times	2.80	1.43
PBDIT/Interest	Times	0.46	1.38

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.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 26 Nov 2021 Proposed Bank Facility Long Term 337.00 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 100.00 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 256.75 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 112.50 ACUITE B+ ( Issuer not co-operating*) 24 Aug 2020 Term Loan Long Term 256.75 ACUITE B+ (Downgraded and Issuer not co-operating*) Proposed Bank Facility Long Term 337.00 ACUITE B+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 100.00 ACUITE B+ (Downgraded and Issuer not co-operating*) Term Loan Long Term 112.50 ACUITE B+ (Downgraded and Issuer not co-operating*) 18 May 2020 Term Loan Long Term 112.50 ACUITE BBB+ (CE) (Downgraded from ACUITE A- (CE) | Negative) Term Loan Long Term 100.00 ACUITE BBB+ (CE) (Downgraded from ACUITE A- (CE) | Negative) Term Loan Long Term 256.75 ACUITE BBB+ (CE) (Downgraded from ACUITE A- (CE) | Negative) Proposed Bank Facility Long Term 337.00 ACUITE BBB+ (CE) (Downgraded from ACUITE A- (CE) | Negative) 16 Apr 2020 Term Loan Long Term 112.50 ACUITE A- (CE) | Negative (Downgraded from ACUITE A+ (CE) | Stable) Term Loan Long Term 256.75 ACUITE A- (CE) | Negative (Downgraded from ACUITE A+ (CE) | Stable) Proposed Bank Facility Long Term 337.00 ACUITE A- (CE) | Negative (Downgraded from ACUITE A+ (CE) | Stable) Term Loan Long Term 100.00 ACUITE A- (CE) | Negative (Downgraded from ACUITE A+ (CE) | Stable) 11 Mar 2020 Term Loan Long Term 256.75 ACUITE A+ (CE) | Stable (Reaffirmed) Term Loan Long Term 112.50 ACUITE A+ (CE) | Stable (Reaffirmed) Proposed Bank Facility Long Term 337.00 ACUITE A+ (CE) | Stable (Reaffirmed) Term Loan Long Term 100.00 ACUITE A+ (CE) | 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 Not Applicable Not Applicable Proposed Long Term Loan Not Applicable Not Applicable Not Applicable 337.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* IFCI Ltd. Not Applicable Term Loan Not available Not available Not available 112.50 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Union Bank of India Not Applicable Term Loan Not available Not available Not available 256.75 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating* Punjab National Bank Not Applicable Term Loan Not available Not available Not available 100.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Radhika Kolwankar Analyst-Rating Operations Tel: 022-49294065 radhika.kolwankar@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.