Press Release December 30, 2025 LOKHANDWALA KATARIA CONSTRUCTION PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	439.00	ACUITE D | Reaffirmed	-
Total Outstanding	439.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long term rating of ‘ACUITE D’ (read as ACUITE D) on Non Convertible Debentures (NCDs) issue of Rs.439.00 crore of Lokhandwala Kataria Construction Private Limited (LKCPL). Rationale for Rating The reaffirmation is on account of continued delays in debt servicing for all the NCDs as confirmed by the debenture trustee. The issuer’s extension request for interest and principal payment on ISIN INE999H07090 till June 30, 2025 (due on October 15, 2024), approved by the debenture holder and trustee, remains pending for in-principal approval from the stock exchange. Further, issuer has requested debenture holder to extend the interest and maturity date till December 31, 2025, for which approval from the debenture holder is awaited.

About the Company

Incorporated in 1998, ­Mumbai based LKCPL is owned by the Lokhandwala family,  Mr. Mohammed A Lokhandwala, Mr. Mohammed Moiz Lokhandwala and Mr. Aliasgar Lokhandwala. The company is currently developing a project by the name of “Minerva” in Mahalaxmi region of Mumbai for the construction of 10 rehabilitation buildings, a school, a maternity/municipal clinic, a welfare centre, a Balwadi and a saleable building 362 apartments. The project began in May 2011.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuité has considered the standalone business and financial risk profiles of the LKCPL to arrive at this rating.

Key Rating Drivers

Strengths

­Experienced management and long track record of operations LKCPL is promoted by Mr. Mohammed A Lokhandwala, Mr. Mohammed Moiz Lokhandwala and Mr. Aliasgar Lokhandwala who are all seasoned industry veterans managing the day to day operations of the company. The promoters of the company have amassed more than two decades of experience in the real estate industry via their association with the group companies. Further, the company has a track record of operations of more than two decades in the aforementioned line of business. The vast experience of the management, coupled with the long track of operations of the company has enabled LKCPL to execute numerous big projects in the region of Mumbai as well as overseas.

Weaknesses

Delay in debt servicing  Instances of delays in debt servicing were reported for ISINs INE999H07033, INE999H07058, INE999H07074, INE999H07082, and INE999H07090 during October 2025, as per the written feedback received from the debenture trustee. Further, the extension for interest and principal payment on ISIN INE999H07090 remains pending for in-principal approval  from the stock exchange.

Rating Sensitivities

­­Timely servicing of debt obligations

All Covenants

­­Security cover falling below 110% will be considered as an event of default.

Liquidity Position

Stretched

­­The liquidity of the company is marked stretched due to instances of delays/default in servicing repayment obligations on the NCD's. Further, the company also does not maintain adequate debt service reserve account.

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	296.28	222.03
PAT	Rs. Cr.	(315.85)	(278.22)
PAT Margin	(%)	(106.60)	(125.30)
Total Debt/Tangible Net Worth	Times	(0.96)	(1.44)
PBDIT/Interest	Times	(0.14)	(0.01)

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 30 Dec 2024 Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 90.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE D (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 11.00 ACUITE D (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 39.00 ACUITE D (Reaffirmed) 18 Oct 2024 Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 90.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 11.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 39.00 ACUITE D (Downgraded from ACUITE C) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE D (Downgraded from ACUITE C) 20 Dec 2023 Non-Covertible Debentures (NCD) Long Term 90.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE C (Assigned) Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 11.00 ACUITE C (Assigned) Non-Covertible Debentures (NCD) Long Term 39.00 ACUITE C (Assigned) Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) 24 Aug 2023 Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 90.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Proposed Non Convertible Debentures Long Term 39.00 ACUITE Provisional C (Assigned) Proposed Non Convertible Debentures Long Term 25.00 ACUITE Provisional C (Reaffirmed) Proposed Non Convertible Debentures Long Term 11.00 ACUITE Provisional C (Reaffirmed) 02 Nov 2022 Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 90.00 ACUITE C (Assigned) Proposed Non Convertible Debentures Long Term 25.00 ACUITE Provisional C (Reaffirmed) Proposed Non Convertible Debentures Long Term 11.00 ACUITE Provisional C (Reaffirmed) 05 May 2022 Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 75.00 ACUITE C (Assigned) Proposed Non Convertible Debentures Long Term 101.00 ACUITE Provisional C (Reaffirmed) Proposed Non Convertible Debentures Long Term 25.00 ACUITE Provisional C (Reaffirmed) 04 Feb 2022 Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE C (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 149.00 ACUITE C (Reaffirmed) Proposed Non Convertible Debentures Long Term 101.00 ACUITE Provisional C (Assigned) Proposed Non Convertible Debentures Long Term 100.00 ACUITE Provisional C (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 Not Applicable INE999H07058 Non-Convertible Debentures (NCD) 01 Dec 2020 7.00 26 Oct 2026 149.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07033 Non-Convertible Debentures (NCD) 02 Nov 2020 7.00 26 Oct 2026 50.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07082 Non-Convertible Debentures (NCD) 22 Nov 2022 7.00 26 Oct 2026 90.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07090 Non-Convertible Debentures (NCD) 04 Oct 2023 7.00 15 Oct 2024 25.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07074 Non-Convertible Debentures (NCD) 20 Apr 2022 7.00 26 Oct 2026 75.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07090 Non-Convertible Debentures (NCD) 04 Oct 2023 7.00 15 Oct 2024 11.00 Simple ACUITE D | Reaffirmed Not Applicable INE999H07090 Non-Convertible Debentures (NCD) 04 Oct 2023 7.00 15 Oct 2024 39.00 Simple ACUITE D | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Sanidhya Jain 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.