Press Release April 25, 2025 TARC LIMITED Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	1130.00	Not Applicable | Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	1130.00	-	-

Rating Rationale

­Acuité has withdrawn its long-term rating for the Non Convertible Debentures of Rs. 1130.00 Cr. of TARC Limited (TARC) without assigning any rating as the outstanding facilities have been paid off and the rating has been withdrawn on account of the request received from the company along with No Due Certificate received from the Debenture Trustee as per Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.

About the Company

­Delhi based TARC Limited is a Public Limited Company incorporated in the year 2016. The Company is engaged in the real estate development business and is primarily pursuing residential projects in the NCR and Delhi region. Pursuant to the Order of the Hon’ble NCLT Chandigarh on 24th August 2020 approving the demerger, the Company emerged as the resulting Company under the name and style of Anant Raj Global Limited, which was subsequently renamed as TARC Limited. TARC’s current Chairman is Mr. Anil Sarin and the day to day operations of the Group are managed Mr. Amar Sarin – Managing Director and CEO.

About the Group

­TARC GROUP comprises of TARC LIMITED and 63 other entities which are subsidiaries, associates or Joint Ventures of TARC Limited. The group has a land bank of ~500 Acres. The list of companies in the group is given in Annexure - 2.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation-Not Applicable

Rationale for Consolidation or Parent / Group / Govt. Support

­Not Applicable

Key Rating Drivers

Strengths

­Not Applicable

Weaknesses

­Not Applicable

ESG Factors Relevant for Rating

­Employee health & safety management is of primary importance to the construction industry given the nature of operations. Additionally, product quality and safety is of utmost significance. Human rights concerns such as forced labor are crucial considering the exploitative industry practices. Furthermore, responsible procurement and community relations are key influencing factors. The inherent material risk to the construction industry includes releasing toxic greenhouse gases and delivering a green building structure by utilizing clean technology. Factors such as ethical business practices, legal and regulatory compliance hold utmost significance in the construction industry, considering the frequency of litigations. Other issues include management compensation and Board oversight.

Rating Sensitivities

­Not Applicable.

Liquidity Position

­Not Applicable

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.	111.45	193.54
PAT	Rs. Cr.	(77.04)	20.36
PAT Margin	(%)	(69.13)	10.52
Total Debt/Tangible Net Worth	Times	1.40	1.29
PBDIT/Interest	Times	0.42	1.21

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)

Yes

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 • 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 26 Dec 2024 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BB+ (Reaffirmed (Rating Watch with Negative Implications)) 05 Jun 2024 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BB+ | Stable (Reaffirmed) 12 Apr 2024 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 200.00 ACUITE Not Applicable (Withdrawn) Proposed Non Convertible Debentures Long Term 70.00 ACUITE Not Applicable (Withdrawn) 13 Apr 2023 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BB+ | Stable (Reaffirmed (Negative to Stable)) Non-Covertible Debentures (NCD) Long Term 200.00 ACUITE BB+ | Stable (Reaffirmed (Negative to Stable)) Proposed Non Convertible Debentures Long Term 70.00 ACUITE Provisional BB+ | Stable (Reaffirmed (Negative to Stable)) 29 Nov 2022 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BB+ | Negative (Downgraded (Stable to Negative) from ACUITE BBB- | Stable) Non-Covertible Debentures (NCD) Long Term 200.00 ACUITE BB+ | Negative (Downgraded (Stable to Negative) from ACUITE BBB- | Stable) Proposed Non Convertible Debentures Long Term 70.00 ACUITE Provisional BB+ | Negative (Downgraded (Stable to Negative) from ACUITE Provisional BBB- | Stable) 04 May 2022 Non-Covertible Debentures (NCD) Long Term 1130.00 ACUITE BBB- | Stable (Assigned) Non-Covertible Debentures (NCD) Long Term 200.00 ACUITE BBB- | Stable (Assigned) Proposed Non Convertible Debentures Long Term 70.00 ACUITE Provisional BBB- | Stable (Reaffirmed) 11 Apr 2022 Proposed Non Convertible Debentures Long Term 1400.00 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 INE0EK907019 Non-Convertible Debentures (NCD) 29 Apr 2022 6 08 Apr 2025 1130.00 Simple Not Applicable|Withdrawn

­

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

Sr. No. Company Name 1 TARC Limited 2 TARC Infrastructure Limited 3 BBB Realty Limited 4 Echo Buildtech Limited 5 Elevator Promoters Limited 6 Elevator Properties Limited 7 Fabulous Builders Limited 8 Gadget Builders Limited 9 Grand Buildtech Limited 10 Green View Buildwell Limited 11 High Land Meadows Limited 12 Jubilant Software Services Limited 13 Kalinga Realtors Limited 14 Park Land Construction and Equipments Limited 15 TARC Green Retreat Limited 16 TARC Projects Limited 17 Townsend Construction and Equipments Limited 18 Travel Mate India Limited 19 Elegent Estates Private Limited 20 Elegant Buildcon Private Limited 21 Elevator Buildtech Private Limited 22 Grandpark Buildtech Private Limited 23 Grand Park Estates Private Limited 24 Greenline Buildcon Private Limited 25 Greenline Promoters Private Limited 26 Hemkunt Promoters Private Limited 27 Kalinga Buildtech Private Limited 28 Novel Buildmart Private Limited 29 Novel Housing Private Limited 30 Oriental Meadows Limited 31 Bolt Properties Limited 32 Rapid Realtors Private Limited 33 Greenwood Properties Private Limited 34 Park Land Developers Private Limited 35 Park View Promoters Private Limited 36 Roseview Buildtech Private Limited 37 Roseview Properties Private Limited 38 Sand Storm Buildtech Private Limited 39 Suburban Farms Private Limited 40 TARC Buildtech Private Limited 41 TARC Estates Private Limited 42 TARC Properties Private Limited 43 Twenty First Developers Private Limited 44 Ankur Buildcon Limited 45 Capital Buildcon Limited 46 Capital Buildtech Limited 47 Carnation Buildtech Limited 48 Gagan Buildtech Limited 49 Greatways Buildtech Limited 50 Krishna Buildtech Limited 51 Monarch Buildtech Limited 52 Moon Shine Entertainment Limited 53 Oriental Promoters Limited 54 Papillon Buildtech Limited 55 Papillon Buildcon Limited 56 Rising Realty Limited 57 West Land Buildcon Limited 58 A-Plus Estates Private Limited 59 Spiritual Developers Private Limited 60 Ganga Bishan & Co. 61 Asylum Estate LLP 62 Gagan Promoters LLP 63 Niblic Greens Hospitality Private Limited

Contacts

Mohit Jain Senior Vice President - 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.