Press Release June 06, 2025 GLOBAL SURFACES LIMITED (ERSTWHILE GLOBAL STONES PRIVATE LIMITED) Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	9.10	ACUITE BBB+ | Negative | Reaffirmed | Stable to Negative	-
Bank Loan Ratings	134.00	-	ACUITE A2 | Reaffirmed
Total Outstanding	143.10	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) and short-term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs. 143.10 Cr. bank facilities of Global Surfaces Limited (erstwhile Global Stones Private Limited). The outlook is revised to 'Negative' from 'Stable'. Rationale for rating The rating reaffirmation with a negative outlook factors that the financial parameters of the group are deteriorating sequential quarter on quarter basis, PAT stood at Rs. -11.02 Cr. in Q4FY2025 against -10.43 Cr. in Q3FY2025. Also, EBITDA of the group stood at Rs. -1.93 Cr. in Q4FY2025 against Rs. -5.31 Cr. in Q3FY2025. The stabilisation of Dubai plants remain a key monitorable, since the entity of Dubai are incurring EBDITA losses.  Acuité believes that the group’s ability to grow its scale of operations and profitability while improving its debt protection metrices remains a key rating monitorable since DSCR and ICR for FY25 are both below unity. The rating is further constrained on account of intensive working capital requirement of operations and stretched liquidity.

About the Company

­The company was incorporated as Swastik Niwas Private Limited on August 23, 1991 and its name was changed to Global Stones Private Limited in 2004. The company was renamed to Global Surfaces Private Limited on October 20, 2021 and subsequently converted to public limited company; Global Surfaces Limited on October 21, 2021. Global Surfaces Limited (GSL), erstwhile rated as Global Stones Private Limited was takeover in 2004 by Mr. Rajiv Shah. The company is a one Star export house engaged in producing and exporting of slabs made of granite, marbles and engineered quartz. The manufacturing units are located at Jaipur, Rajasthan. The company exports granite and marble slabs to USA, Canada, UK, UAE etc.

About the Group

­Global Surfaces FZE is a company incorporated in the laws of United Arab of Emirates. The company was incorporated on 23rd December 2021. The company is engaged in the manufacturing of quartz slabs. Mr. Mayank Shah and Ms. Sweta Shah are the directors of the company. Global Surfaces Inc. is a company incorporated in the laws of United States. The company was incorporated on 20th April 2020 and is engaged in trading of quartz slabs. Superior Surfaces Inc. was incorporated on May 5, 2023, in the State of Texas, USA. SSI is involved in the business of distributing artificial stones, including engineered quartz. Global Surfaces FZE, Global Surfaces Inc. and Superior Surfaces Inc. are subsidiaries of Global Surfaces Limited and together referred as Global Group.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité has consolidated the business and financial risk profile of Global Surfaces Limited, Global Surfaces FZE, Global Surfaces Inc. and Superior Surfaces Inc. The consolidation is in view of the common ownership and strong operational and financial linkages within the group.­

Key Rating Drivers

Strengths

­Experienced promoters with established track record of operations The promoters of Global Surfaces Limited (GSL) have long experience in marble industry. GSL’s board of directors comprises of six directors namely Mr. Mayank Shah, Mrs. Sweta Shah, Mr. Ashish Kachawa, Mr. Yashwant Kumar Sharma, Mr. Sudhir Baxi, and Dr. Chandan Chowdhury. Mr. Mayank Shah is the managing director and has around two decades of experience in the industry. The other five directors who are professionally running the company ably support him. Over the years, the group has been able to maintain healthy relations with their customers and suppliers. The group has set up operations in Dubai which is expected to augment business and will remain a key monitorable. Acuité believes that the group will continue to benefit from its experienced management and long track record of operation in the industry.

Weaknesses

­Decline in business profitability The group has reported revenue of Rs. 207.64 Crore in FY25 against Rs. 225.29 Crore in FY24. The decline in the revenue is due to decline in demand in the international market. The EBITDA Margins of the group stood at 0.93% in FY25 against 16.61% in FY24 due to the increase in price of raw materials and increase in the employee benefits expenses, administrative and other manufacturing expenses. Due to subdued demand internationally and lesser than expected off-takes, the fixed costs of Dubai plant could not be fully absorbed. The PAT Margins of the group stood at -13.92% in FY25 against 8.78% in FY24 due to increase in depreciation and finance cost. The Q4FY25 revenues and PAT margin were at RS. 57.47 Cr. and -19.17% against Q3FY24 revenues and PAT margin of Rs. 46.06 Cr. and -22.62% respectively. Acuite believes going forward stabilization of Dubai plant will impact the overall operating performance and margins that will remain a key monitorable. Declining Financial Risk profile The financial risk profile of the group is marked by net-worth of Rs. 303.80 Crore in FY25 eroded due to losses during the year, against Rs. 332.22 Crore in FY24. The total debt of the group stood at Rs. 199.46 Crore in FY25 against Rs. 144.63 Cr. in FY24. Further, the debt-equity ratio of the group stood at 0.66 times in FY25 against 0.44 times in FY24. The interest coverage ratio of the group stood at 0.59 times in FY25 against 6.09 times in FY24. The DSCR of the group stood at 0.23 times in FY25 against 3.36 times in FY24. TOL/TNW ratio stood at 0.77 times in FY25 against 0.51 times in FY24. Acuité believes that going forward the debt protection metrices of the group is a key monitorable. Intensive Working capital operations The working capital operations of the group is intensive marked by GCA days of 417 days in FY25 against 319 days in FY24. There is an increase in the GCA days due to the inventory days of the group which stood at 168 days in FY25 against 149 days in FY24, debtor days of the group stood at 224 days in FY25 against 178 days in FY24 and creditor days stood at 166 days in FY25 against 106 days in FY24. Acuite believes that the working capital cycle of the group is expected to be intensive over the medium term.

Rating Sensitivities

Movement in operating income and profitability Movement in Working capital operations Stabilisation of Dubai plants operations Improvement in debt protection metrices

Liquidity Position

Stretched

­The liquidity profile of the group stretched. The net cash accruals of group stood at Rs. (10.24) Cr. in FY25 against the debt repayment of Rs. 7.45 Cr. However net cash accruals of the company on standalone basis is Rs. 13.85 Cr. which is supporting the group in the repayment of the loan. The group has cash & bank position of Rs. 2.78 Cr. and current ratio stood at 1.53 times for FY25.  Additional the warrants of Rs. 150 Cr. stands forfeited as warrant holders have failed to exercise their rights to convert the warrants and acquire Equity Share underlying the said warrants which also impact the liquidity profile of the group. Acuité believes that the liquidity position of the group will remain key monitorable over the medium term.

Outlook: Negative

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	207.64	225.29
PAT	Rs. Cr.	(28.90)	19.78
PAT Margin	(%)	(13.92)	8.78
Total Debt/Tangible Net Worth	Times	0.66	0.44
PBDIT/Interest	Times	0.59	6.09

Status of non-cooperation with previous CRA (if applicable)

­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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 24 Feb 2025 PC/PCFC Short Term 16.00 ACUITE A2 (Downgraded from ACUITE A2+) PC/PCFC Short Term 23.80 ACUITE A2 (Downgraded from ACUITE A2+) Letter of Credit Short Term 6.00 ACUITE A2 (Downgraded from ACUITE A2+) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2 (Downgraded from ACUITE A2+) PC/PCFC Short Term 14.00 ACUITE A2 (Downgraded from ACUITE A2+) Letter of Credit Short Term 2.00 ACUITE A2 (Downgraded from ACUITE A2+) Stand By Line of Credit Short Term 20.00 ACUITE A2 (Downgraded from ACUITE A2+) Stand By Line of Credit Short Term 35.00 ACUITE A2 (Downgraded from ACUITE A2+) Stand By Line of Credit Short Term 2.00 ACUITE A2 (Downgraded from ACUITE A2+) Stand By Line of Credit Short Term 15.00 ACUITE A2 (Downgraded from ACUITE A2+) Working Capital Term Loan Long Term 4.41 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative) Cash Credit Long Term 1.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative) Cash Credit Long Term 1.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative) Proposed Long Term Loan Long Term 2.69 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative) 22 Nov 2024 Working Capital Term Loan Long Term 4.41 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) Proposed Long Term Loan Long Term 2.69 ACUITE A- | Negative (Reaffirmed) PC/PCFC Short Term 16.00 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 23.80 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 6.00 ACUITE A2+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 14.00 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 2.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 20.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 35.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 15.00 ACUITE A2+ (Assigned) Stand By Line of Credit Short Term 2.00 ACUITE A2+ (Reaffirmed) 23 Aug 2024 Working Capital Term Loan Long Term 5.80 ACUITE A- | Negative (Reaffirmed) Term Loan Long Term 3.30 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) PC/PCFC Short Term 16.00 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 23.80 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 6.00 ACUITE A2+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 14.00 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 2.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 20.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 35.00 ACUITE A2+ (Reaffirmed) 02 Feb 2024 Working Capital Term Loan Long Term 5.80 ACUITE A- | Negative (Reaffirmed) Term Loan Long Term 3.30 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) PC/PCFC Short Term 16.00 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 23.80 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 6.00 ACUITE A2+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 14.00 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 2.00 ACUITE A2+ (Reaffirmed) Stand By Line of Credit Short Term 20.00 ACUITE A2+ (Assigned) Stand By Line of Credit Short Term 35.00 ACUITE A2+ (Assigned) 17 Nov 2023 Working Capital Term Loan Long Term 5.80 ACUITE A- | Negative (Reaffirmed) Term Loan Long Term 3.30 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed) PC/PCFC Short Term 16.00 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 23.80 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 8.00 ACUITE A2+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 14.00 ACUITE A2+ (Reaffirmed) 19 Jun 2023 Working Capital Term Loan Long Term 5.80 ACUITE A- | Negative (Reaffirmed (Stable to Negative)) Term Loan Long Term 3.30 ACUITE A- | Negative (Reaffirmed (Stable to Negative)) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed (Stable to Negative)) Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed (Stable to Negative)) PC/PCFC Short Term 16.00 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 23.80 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 8.00 ACUITE A2+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.20 ACUITE A2+ (Reaffirmed) PC/PCFC Short Term 14.00 ACUITE A2+ (Reaffirmed) 31 Mar 2022 Cash Credit Long Term 2.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable) Stand By Line of Credit Long Term 5.80 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable) Term Loan Long Term 6.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable) Proposed Long Term Bank Facility Long Term 3.30 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable) PC/PCFC Short Term 16.00 ACUITE A2+ (Upgraded from ACUITE A2) Bills Discounting Short Term 32.00 ACUITE A2+ (Upgraded from ACUITE A2) Letter of Credit Short Term 8.00 ACUITE A2+ (Upgraded from ACUITE A2)

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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 HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.20 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB+ | Negative | Reaffirmed | Stable to Negative Kotak Mahindra Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB+ | Negative | Reaffirmed | Stable to Negative HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE A2 | Reaffirmed Kotak Mahindra Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.00 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 23.80 Simple ACUITE A2 | Reaffirmed Kotak Mahindra Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE A2 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.69 Simple ACUITE BBB+ | Negative | Reaffirmed | Stable to Negative HDFC Bank Ltd Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A2 | Reaffirmed Kotak Mahindra Bank Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE A2 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Feb 2027 4.41 Simple ACUITE BBB+ | Negative | Reaffirmed | Stable to Negative

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

Sr.No. Company Name 1 Global Surfaces Limited (erstwhile Global Stones Private Limited) 2 Global Surfaces FZE 3 Global Surfaces Inc. 4 Superior Surfaces Inc.

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.