Press Release January 17, 2025 MAC CHARLES INDIA LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	620.00	ACUITE BB | Downgraded | Issuer not co-operating*	-
Total Outstanding	620.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE BB’ (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE Double B Plus) on the Rs.620.00 Cr. of Non-Convertible Debentures (NCDs) of MAC Charles India Limited (MCIL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings. But despite multiple requests, the company has remained non-cooperative in providing any information. The rating downgrade is on account of information risk.

About the Company

Mac Charles (India) Limited (MCIL) is in the business of real estate development and wind power generation. The company is incorporated in 1979 and based out of Bangalore and is promoted by Embassy Group which holds 73.41 percent of the shares of MCIL through Embassy Property Developments Private Limited. The company owns commercial real estate assets in Bangalore, Kerala and 5 wind power generation units in Bellary. Currently, the Company is redeveloping the erstwhile Le Meriden Hotel site in CBD Bangalore into a landmark A-Grade commercial office building under the project named – Embassy Zenith. MCIL, has recently initiated another project under its 100 percent wholly owned subsidiary named ‘Embassy Hub projects Private Limited’ to acquire land parcels (a mix of outright acquisition and JDA) followed by construction of commercial space for leasing. The Company has divested its stake in one of its 100 percent wholly owned subsidiary - Airport Golfview Hotels & Suites Private Limited which operated Airport Golf View Hotel in Cochin.

About the Group

­Embassy Group was incorporated in 1993 by Mr. Jitendra Virwani. The group is one of the leading real estate developers. The group has developed 55+ Million Sq. Ft. In its legacy of expertise spanning 25 years, Embassy Group has covered the entire value chain of real estate from land acquisition to the development, marketing and operation of assets. In addition, the Embassy group owns properties in the hospitality segment as well. It also has an extensive land bank of 1000+ acres across India. The operation spread across Indian and international markets that include Bangalore, Chennai, Pune, Trivandrum, Serbia and Malaysia. The group from time to time partners with several established market players like, Blackstone, Warburg Pincus, Taurus Investments as well as different financial institutions to execute projects.

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

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

All Covenants

The Company shall supply financial statements to the Debenture Trustee as soon they become available. The Company shall supply to the Debenture Trustee, with each set of financial statements of Embassy Property Developments Private Limited (EPDPL), a compliance certificate setting out (in reasonable detail) computations as to compliance Financial Covenants, along with the relevant valuation reports which have been relied upon to determine the fair value of the assets of EPDPL. The Company shall ensure that until the Final Settlement Date the Guarantor Net Worth shall, at all times in relation to EPDPL be not less than INR 10,000,000,000. The Loan to Value (LTV) Ratio as at the Pay In Date for the Debentures for all traches will not be more than 66.66 percent.

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	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	11.38	11.19
PAT	Rs. Cr.	(40.54)	58.98
PAT Margin	(%)	(356.12)	527.08
Total Debt/Tangible Net Worth	Times	1.90	1.11
PBDIT/Interest	Times	0.43	3.07

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 • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 23 Jan 2024 Non-Covertible Debentures (NCD) Long Term 135.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 135.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 99.90 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 50.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 100.10 ACUITE BB+ | Stable (Reaffirmed) 20 Feb 2023 Non-Covertible Debentures (NCD) Long Term 300.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Non-Covertible Debentures (NCD) Long Term 320.00 ACUITE BB+ | Stable (Assigned) 31 May 2022 Non-Covertible Debentures (NCD) Long Term 300.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 320.00 ACUITE Provisional 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 Not Applicable INE435D07110 Non-Convertible Debentures (NCD) 24 Aug 2022 Not avl. / Not appl. 24 Aug 2026 135.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07136 Non-Convertible Debentures (NCD) 20 Sep 2022 Not avl. / Not appl. 24 Aug 2026 135.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07128 Non-Convertible Debentures (NCD) 21 Dec 2022 Not avl. / Not appl. 24 Aug 2026 30.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07011 Non-Convertible Debentures (NCD) 26 Jul 2021 Not avl. / Not appl. 26 Jul 2025 99.90 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07037 Non-Convertible Debentures (NCD) 12 Aug 2022 Not avl. / Not appl. 26 Jul 2025 25.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07060 Non-Convertible Debentures (NCD) 15 Dec 2022 Not avl. / Not appl. 26 Jul 2025 25.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07128 Non-Convertible Debentures (NCD) 21 Dec 2022 Not avl. / Not appl. 24 Aug 2026 20.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07086 Non-Convertible Debentures (NCD) 22 May 2023 Not avl. / Not appl. 26 Jul 2025 50.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Not Applicable INE435D07094 Non-Convertible Debentures (NCD) 26 Dec 2023 Not avl. / Not appl. 26 Jul 2025 100.10 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

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

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.