Press Release February 14, 2025 PRATEEK REALTORS INDIA PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	325.00	ACUITE C | Reaffirmed	-
Total Outstanding	325.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed the long-term rating of ‘ACUITE C’ (read as ACUITE C) on the Rs. 325.00 Cr. Non-Convertible Debentures of Prateek Realtors India Private Limited.  Rationale for reaffirmation As per reporting in CIC Report of the company, multiple delays have been captured in debt obligation servicing (in long term loans) by PRIPL in the month of October, 2024.

About the Company

­Prateek Realtors India Private Limited (PRIPL) was incorporated on 2009. The company is based in Delhi. It is promoted by Mr. Prashant Kumar Tiwari (& family) who holds 100% of the company directly or through group companies (Prateek Buildtech India Private Limited – 93% and Prashant Kumar Tiwari – 7%). Prateek Realtors India Private Limited is a real estate development company which is developing affordable Group Housing Project : Grand City having 40 acres’ land area and ~8.3 mn saleable area located at Siddhartha Vihar, Ghaziabad. The current director of company is Mr. Prateek Tiwari and Mr. Prashant Kumar Tiwari.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone approach on the business and financial risk profile of Prateek Realtors India Private Limited to arrive at rating.

Key Rating Drivers

Strengths

­Experienced Promoters with established track record of operations Prateek Realtors India Private Limited (PRIPL) was incorporated in 2009. The promoter of the company Mr. Prashant Tiwari has experience of more than two decades in this line of business. The group has substantial presence in Noida and Ghaziabad and has delivered 7.9 mnsft (6 projects) in Delhi NCR such as The Royal cliff, Prateek Fedora, Prateek laurel, Prateek wisteria and Prateek Edfice, and Prateek Stylome. Further, the company is developing affordable Group Housing Project: Grand City having 40 acres’ land area and 8.3 mn saleable area, located at Siddhartha Vihar, Ghaziabad.

Weaknesses

­Delay in term loan repayment As per reporting in CIC Report of the company, multiple delays have been captured in debt obligation servicing (in long term loans) by PRIPL in the month of October, 2024. Susceptibility to Real Estate Cyclicality, Geographical concentration and regulatory risks The real estate industry in India is highly fragmented with most of the real estate developers having a city-specific presence. Most of the past and ongoing projects are located in Delhi NCR - This increases PRIPL’s susceptibility to geographical concentration risk. The real estate industry is cyclical in nature of business and subject to price and interest rate risk, among others. Further, the industry is also exposed to regulatory risk, which can impact project execution.

ESG Factors Relevant for Rating

­The infrastructure development industry has a significant social impact since it is a labour intensive business. Further, community support and development, employee safety and human rights are material factors from the social perspective. Additionally, product quality and safety is of utmost significance. Governance issues that assume relevance include board and management compensation, shareholders rights and board diversity. Factors such as business ethics, legal and regulatory compliance, management compensation and board diversity hold primary importance apart from audit control with regards to governance.

Rating Sensitivities

­Timely repayment of debt obligations.

All Covenants

Balance of Piramal/Apollo Debt after payment of Rs.225 Cr. shall be converted into settlement area. Piramal/Apollo Debt shall continue as a customer for the area converted and shall provide no dues certificate for the repayment of debt. No further debt in any form can be raised by the obligors without investor. Subordination of any related party debt. Cumulative Minimum collection of Rs. 500.00 Cr. from Prateek Grand City Project Phase I and II from 1st April, 2024 till before March 31, 2026 with quarterly targets. Other milestones of Phase Ill to be discussed and mutually agreed at the time of transaction documentation. No sale below the floor price is set out in business plan for any project without consent of investor. Cash flow cover and Security cover of at least 2.25 times at all times. Cash flow cover / Security cover can be tested anytime at the discretion of investor by an external valuer of investor's choice at the cost of obligor. No transactions with promotor or related parties except as explicitly disclosed and agreed. No dividend or any direct or indirect payment to promotor or related parties (except as explicitly disclosed and agreed). Submission of monthly/quarterly business plan. Construction, Approval, and Sales milestones to be monitored and met as per the business plan. All cash flows to be routed through escrow account. Monitoring of all construction expenses through an escrow mechanism. Sponsor not to divest any stake in the obligors other than those as agreed in the business plan till investor debt is fully repaid.

Liquidity Position

Stretched

­The liquidity profile of the company is stretched on an account of delays being captured in debt obligation servicing in multiple accounts of the company as per the reporting in CIC Report.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	168.43	29.85
PAT	Rs. Cr.	(110.35)	(120.69)
PAT Margin	(%)	(65.52)	(404.31)
Total Debt/Tangible Net Worth	Times	(4.49)	(6.21)
PBDIT/Interest	Times	0.24	(0.44)

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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 15 Feb 2024 Proposed Non Convertible Debentures Long Term 325.00 ACUITE C (Assigned) 31 Jan 2024 Proposed Non Convertible Debentures Long Term 325.00 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 INE0K4K07022 Non-Convertible Debentures (NCD) 28 Mar 2024 19.50 31 Aug 2027 325.00 Simple ACUITE C | Reaffirmed

Contacts

Mohit Jain Senior Vice President - Rating Operations Archita Sharma 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.