Press Release March 07, 2025 PRATEEK REALTORS INDIA PRIVATE LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	300.00	ACUITE B | Stable | Assigned	-
Non Convertible Debentures (NCD)	325.00	ACUITE B | Stable | Upgraded	-
Total Outstanding	625.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has upgraded long-term rating to ‘ACUITE B’ (read as ACUITE B) from ‘ACUITE C’ (read as ACUITE C) on the Rs.325.00 Cr. Non-Convertible Debentures of Prateek Realtors India Private Limited. The outlook is ‘Stable’. Further, Acuite has assigned long-term rating of ‘ACUITE B’ (read as ACUITE B) on the Rs.300.00 Cr. Non-Convertible Debentures of Prateek Realtors India Private Limited. The outlook is ‘Stable’. Rationale for Upgrade The rating takes into account the curing period being established for past delays upto October, 2024 in the long term loans. The rating further factors the experience of promoters and proven track record of over two decades in the same line of business. The first two phases of Prateek Grand City are on the verge of completion wherein 92% of the inventory has been sold and balance inventory is expected to be sold in next couple of quarters, which will remain a key monitorable. In addition, Construction of Phase III of Prateek Grand City is ongoing and is expected to be completed by FY30 wherein 14% of inventory has been sold against 3.5% construction being completed as on 31st December, 2024 and 335 units have been sold out of 2316 units. However, the strengths are partially off-set by the ongoing construction of Phase III of Prateek Grand City which is at nascent stage and carries project execution, implementation and demand risks coupled with low DSCR which stood below unity out of first two phases of Prateek Grand City, however the risk is mitigated by the expected sufficient cashflow generated from the third phase of Prateek Grand City, which will remain a key sensitive factor.

About the Company

­Delhi based, Prateek Realtors India Private Limited (PRIPL) was incorporated in 2009. 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%). The company is engaged in real estate activities & housing construction and is developing affordable Group Housing Project ~ Prateek Grand City having 40 acres’ land area, located at Siddhartha Vihar, Ghaziabad. The current director of company are Mr. Prateek Tiwari and Mr. Prasant 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 The promoter of Prateek Realtors India Private Limited (PRIPL), 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 six projects in Delhi NCR such as The Royal cliff, Prateek Fedora, Prateek laurel, Prateek wisteria and Prateek Edfice, and Prateek Stylome. Currently, PRIPL is developing affordable Group Housing Project: Grand City which is a 40 acres’ integrated township located at Siddhartha Vihar, Ghaziabad. Acuite believes that the business acumen of the promoters is expected to benefit the business risk profile of the company over the medium term.

Weaknesses

­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 or region-specific presence. Most of PRIPL’s past and ongoing projects are located in Delhi NCR which increases its susceptibility to geographical concentration risk. Further, the real estate industry is cyclical in nature of business and subject to price and interest rate risk, among others. Additionally, the industry is also exposed to regulatory risk, which can impact project execution. Project Execution Risk The project execution risk is associated with the project (Prateek Grand City - Phase III) as it is on very nascent stage. Further, PRIPL has sold 335 units out of 2316 units and as on 31st December, 2024, 14% of inventory has been sold against 3.5% construction being completed. The project is also exposed to funding risk as the NCD of Rs.300 Crore are yet to be issued. However, the other two phases (Phase I & II) of Prateek Grand City are on the verge of completion wherein 92% of the inventory has been sold and balance inventory is expected to be sold in next couple of quarters, which will remain a key monitorable. In addition, the demand risk is also associated with the project due to its recent launch and local real estate market being fragmented and unorganised thereby increasing competition. Further, the commanding of better price realisation will remain a key sensitive in near to medium term as the company is depending upon the large customer advances. The project (Prateek Grand City - Phase III) is also exposed to implementation risk as it is expected to be completed by June, 2029. Acuite believes that timely completion and receipt of customer advances would remain a key rating sensitivity factor over the medium term.

Rating Sensitivities

­Timely refinancing by issuance of NCD. Timely realization of customer advances pending from sold inventory. Lower than expected sales traction leading to increased dependence on debt. Sharp decline in cashflow by slackened saleability of project or delays in project execution.

All Covenants

Balance of Piramal/Apollo Debt after payment of Rs. 225 Cr. shall be converted into Settlement Area. Pirama / 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 Cr. from Prateek Grand City Project Phase I and 2 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 PRIPL is stretched and the DSCR from first two phases of Prateek Grand City (Phase I & II) is falling below unity. However, the risk is mitigated by the expected sufficient cashflow generated from the third phase of Prateek Grand City (Phase III) in near to medium term in form of customer advances taken from tied up and unsold units.

Outlook: Stable

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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

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Although Acuite requested an interaction with the Audit Committee the issuer entity was unable to arrange it.

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 14 Feb 2025 Non-Covertible Debentures (NCD) Long Term 325.00 ACUITE C (Reaffirmed) 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 B | Stable | Upgraded ( from ACUITE C ) Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 300.00 Simple ACUITE B | Stable | Assigned

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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.