Press Release May 22, 2025 AKME FINTRADE INDIA LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE BBB+ | Stable | Assigned	-
Bank Loan Ratings	170.00	ACUITE BBB+ | Stable | Upgraded	-
Total Outstanding	180.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has upgraded its long term rating to ‘ACUITE BBB+ (read as ACUITE triple B plus)' from 'ACUITE BBB (read as ACUITE triple B)' on the Rs.170.00 Cr. bank facilities of AKME Fintrade India Limited (AFIL). The outlook remains ‘Stable’. Acuité has assigned the long term rating of ‘ACUITE BBB+ (read as ACUITE triple B Plus)' on the Rs.10.00 Cr. proposed bank facilities of AKME Fintrade India Limited (AFIL). The outlook is ‘Stable’. Rationale for Upgrade The rating upgrade is primarily driven by capital infusion through its IPO in FY25 and improvement in the earning profile along with the change in management and inclusion of experienced professionals in the Board of Directors. The IPO in FY25, has taken the networth to ~Rs.382.21 Cr. as on March 31, 2025 from Rs.223.24 Cr. as on March 31, 2024 together with repayments in debt, the gearing has come down to 0.74 times as on March 31, 2025 as against 0.92 times as on  March 31, 2024. Further, the overall collection efficiency has improved to ~91.18% in March 31, 2025 as against ~83.61% in March 31, 2023. AFIL has broad based its management team by inducting experienced professionals. The NBFC has also launched a digital platform “AASAANLOANS” to cater to its product portfolio and enhancing the business model. AFIL has appointed CEO, Mr. Akash Jain, COO, Mr.Shiv Prakash Shrimali, CRO, Mr. Suresh Chandra Gupta, Company Secretary, Mr. Manoj Kumar Choubisa, hence completely revamping its top management with professionals having rich vintage in their domain in lending space. The induction of new management is expected to further augment the business risk profile AFIL over the medium term.  These strengths however, are partly offset by its geographical concentration of the portfolio. Portfolio of AFIL is geographically concentrated as ~63.88% of their portfolio originating from Rajasthan. Going forward, the company’s ability to raise funds and continue the improvement in the growth of AUM, disbursements and profitability while maintaining asset quality would remain a key monitorable.

About the company

­­Udaipur based, Akme Fintrade India Limited (AFIL) was incorporated in 1996 as a non-deposit taking non-banking finance company (NBFC). The company is engaged in financing of two wheelers, four wheelers, commercial vehicles and loan against property (LAP) towards SME borrower base. AFIL is promoted by Mr. Nirmal Kumar Jain. The company presently operates across Rajasthan, Madhya Pradesh, Maharashtra, Gujarat as on March 31, 2025, with majority of their operations in Rajasthan.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of AFIL to arrive at the rating.

Key Rating Drivers

Strength

­Experienced Promoters and Management AFIL’s board comprises 6 members led by Mr. Nirmal Jain (Promoter Director). Mr. Nirmal Jain has over two decades of experience in financial services domain. Mr. Jain is a Chartered Accountant and actively manages day-to-day activities of the company. All other members in the board has an experience of close to a decade in different sectors of finance and lending space. The top management of AFIL has appointed CEO, Mr. Akash Jain, COO, Mr.Shiv Prakash Shrimali, CRO, Mr. Suresh Chandra Gupta, Company Secretary, Mr. Manoj Kumar Choubisa, hence completely revamping its top management with professionals having rich vintage in their domain in lending space, hence completely revamping its top management with professionals having rich vintage in their domain in lending space. Day to day operations are being managed by this team backed by defined policies, processes and guidelines to ensure asset build up backed by quality. Improving Financial Performance and Asset Quality AFIL has witnessed growth in its asset quality with GNPA at 2.77% as on FY25. The GNPA as on March 31, 2025 stood at 2.77% as compared to 3.63% as on March 31, 2024. The GNPAs have largely originated and have remained concentrated in the LAP portfolio of the company with (~62%) as on FY25. Moreover, there is improvement in the overall collection efficiency of the company to ~91.18% in March, 2025  from ~83.61% in March 2024. The AUM of AFIL stood at ~Rs.618.61 Cr. as on March, 2025 while the AUM for FY24 was ~Rs. 425.79 Cr. and ~Rs. 381.34 Cr. for FY23. The company reported PAT of ~Rs. 33.23 Cr. for FY25 as against ~Rs.18.53 Cr. for FY24. The RoAA and the RoTNW improved to 6.00% and 10.98% for FY25 from 4.51% and 8.66% for FY24 respectively. Capital Infusion, IPO and Healthy Capitalisation The promoters' equity infusion in FY23 and the IPO in FY25 has taken the networth of the company to ~Rs. 382.21 Cr. as on March 2025; further the repayments in debt along with the capital infusion has taken the gearing levels to a healthy position of 0.74 times as on March , 2025. In line with the capital infusion, AFIL reported a healthy capitalisation level. The CAR improved to 57.58% as on March 31, 2025 and 49.85% as on March 31, 2024.

Weakness

­­Geographical Concentration AFIL has presence majorly in Rajasthan with ~63.88 percent of the AUM originating from there as on FY25. This exposes the company to high geographical concentration risk. The company's performance is expected to remain exposed to competitive landscape in these regions and occurrence of events such as natural calamities, are likely to adversely impact the credit profile of the borrowers. Besides geography, the company will be exposed to competition and any changes in the regulatory framework thereby impacting credit profile of AFIL. Going forward the company's ability to improve its asset quality while improving its financial metrics will be a key monitorable.

Rating Sensitivity

­ Ability to raise resources in timely manner (equity and debt) Movement in asset quality Movement Profitability and capital adequacy

Liquidity Position

Adequate

­The capital infusions and increase in the collection efficiency have kept the liquidity profile of AFIL adequate. There are no negative cumulative mismatches observed in any of the buckets of the ALM statement. The company has a cash and cash equivalent of Rs. 55.97 Cr. as on 31st March 2025.

Outlook:

­Stable

Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Actual) FY24 (Actual) Total Assets Rs. Cr. 673.53 433.48 Total Income* Rs. Cr. 66.99 43.89 PAT Rs. Cr. 33.23 18.53 Net Worth Rs. Cr. 382.21 223.24 Return on Average Assets (RoAA) (%) 6.00 4.51 Return on Average Net Worth (RoNW) (%) 10.98 8.66 Debt/Equity Times 0.74 0.92 Gross NPA (%) 2.77 3.63 Net NPA (%) 1.27 1.74 *Total income equals to Net Interest Income plus other income

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)

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 • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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 22 Feb 2024 Term Loan Long Term 2.59 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Term Loan Long Term 0.44 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 3.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Long Term Bank Facility Long Term 70.91 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Term Loan Long Term 9.01 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Secured Overdraft Long Term 1.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Term Loan Long Term 20.00 ACUITE BBB | Stable (Assigned) Proposed Long Term Loan Long Term 1.11 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Term Loan Long Term 1.15 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Cash Credit Long Term 5.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Cash Credit Long Term 5.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Cash Credit Long Term 50.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Proposed Long Term Loan Long Term 0.79 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE Not Applicable (Withdrawn) Proposed Non Convertible Debentures Long Term 10.00 ACUITE Not Applicable (Withdrawn) 08 Mar 2023 Term Loan Long Term 3.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Proposed Long Term Bank Facility Long Term 70.91 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 9.01 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Secured Overdraft Long Term 1.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 1.11 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 1.15 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Cash Credit Long Term 50.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 0.79 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 2.59 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Term Loan Long Term 0.44 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Proposed Non Convertible Debentures Long Term 10.00 ACUITE Provisional BBB- | Stable (Upgraded from ACUITE Provisional BB+) 28 Jun 2022 Term Loan Long Term 4.72 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 4.10 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 2.49 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 5.83 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.83 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.86 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 3.79 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 5.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 5.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 50.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 36.51 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 3.14 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.59 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.01 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 3.92 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 5.28 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 2.50 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 5.60 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.94 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 3.60 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 2.20 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.55 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.55 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 1.99 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*) Proposed Non Convertible Debentures Long Term 10.00 ACUITE Provisional BB+ (Reaffirmed & Issuer not co-operating*)

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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 State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.80 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 90.30 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BBB+ | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.11 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.79 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.44 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.01 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) State Bank of India Not avl. / Not appl. Term Loan 20 Jul 2023 Not avl. / Not appl. 19 Jul 2028 11.63 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB ) Indian Overseas Bank Not avl. / Not appl. Term Loan 24 Oct 2024 Not avl. / Not appl. 23 Oct 2029 22.92 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE BBB )

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Contacts

Mohit Jain Senior Vice President - Rating Operations Shabad Palakkal 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.