Press Release June 10, 2025 ASHV FINANCE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	70.00	ACUITE B | Downgraded | Issuer not co-operating*	-
Non Convertible Debentures (NCD)	165.00	ACUITE B | Downgraded | Issuer not co-operating*	-
Total Outstanding	235.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded the long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) to ‘ACUITE B' (read as ACUITE B) on the Rs. 70.00 crore bank facilities of Ashv Finance Limited (AFL). ­Acuité has downgraded the long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) to ‘ACUITE B’ (read as ACUITE B) on the Rs. 165.00 crore non-convertible debentures of Ashv Finance Limited (AFL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The rating has been downgraded on account of information risk.

About the Company

­­Incorporated in February 1998, Mumbai based Ashv Finance Limited (AFL) is registered as nondeposit taking systemically important non-banking financial company. AFL is engaged in funding the MSME sector through various products both secured and unsecured financing. On October 08, 2020, the company had received the approval from Registrar of Companies for change in the name of the company from “Jain Sons Finlease Ltd” to “Ashv Finance Limited”.

About the Group

­­The company is promoted by the Aavishkaar group since 2011 which is focused on developing the impact ecosystem in the continents of Asia and Africa. The group is led by Mr. Vineet Rai who is the founder and Chairman of the group. The promoter group hold 26 percent of the equity shareholding in AFL as on March 31, 2024. The company started its lending operations in 2013 with venture-debt financing. In FY19, the revamping of the business model was done from venture debt financing to small ticket size business loan. AFL currently has customer presence in 6 states with a branch network of 38 branches as on March 31, 2024.

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 non-cooperation 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

­1. Total Debt/Equity ratio to be within 3.75x (excluding securitization transactions) 2. Capital Adequacy Ratio (CAR) of at least 18% or as per applicable RBI regulation, whichever is higher, Of the above CAR, Tier-1 CAR to remain at minimum of 15%. 3. PAR > 90 days (of the Issuer’s entire portfolio, including receivables sold or discounted on a non-recourse basis) not to exceed 8% of Gross Loan Portfolio (excluding-off balance sheet portfolio and PTCs issued by the Issuer) 4. Net NPA (excluding-off balance sheet portfolio and PTCs issued by the Issuer) to Tangible Net Worth shall not exceed 10%. 5. Issuer to maintain a minimum Net-worth of Rs. 230 crores 6. Earnings: After-tax Net Income (excluding extraordinary income) to remain positive. The said covenant to be tested on a quarterly basis starting from March 31, 2023 and on Annual basis thereafter. 7. Issuer to maintain minimum liquidity amount equivalent to next 2 month liabilities (excluding securitization obligations) after including Put Options/interest reset on liabilities (assuming 100% haircut in collections) in the form of unencumbered Cash and Cash equivalents. 8. No Loans exceeding 5% of Net-worth to any single party and/or guarantees on behalf of third parties. 9. There shall not be any negative mismatches on cumulative basis in any of the buckets till the next one year of ALM statement after incorporating all the liabilities of the company incorporating Put Options/ Reset Options etc. (in any form). The asset will also include all the unencumbered Cash and Cash equivalent maturing across all the buckets of the ALM as part of the opening asset balance. Unutilized bank lines and cash credit limits shall not be taken into account while testing the same. 10. In case Intellecap and /or Avishkar Group extends any comfort /guarantee in respect of any indebtedness of the Company (except in case of Banks/ FPIs/ Impact Funds) at any point in time during tenor of this NCDs Issue, the same shall be deemed to be applicable to this NCD Issue. The Issuer shall ensure that Intellecap and /or Avishkar Group forthwith executes all the necessary documents as may be required by the Debenture Holder in this regard and failure to do so shall be an event of default. 11. Any other additional covenant as may be mutually agreed and shall form a part of the transaction documents.

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 2025 (Actual) FY 2024 (Actual) Total Assets* Rs. Cr. 188.65 896.89 Total Income** Rs. Cr. 12.22 74.59 PAT Rs. Cr. (226.63) (110.14) Net Worth Rs. Cr. 90.20 316.98 Return on Average Assets (RoAA) (%) (41.75) (10.87) Return on Average Net Worth (RoNW) (%) (111.32) (33.56) Debt/Equity Times 0.42 1.74 Gross NPA (%) N/A 4.44 Net NPA (%) N/A 2.00 *Total assets exclude deferred tax assets **Total income equals to Net Interest Income plus other income

Status of non-cooperation with previous CRA

­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

Provisions of Chapter IV, Regulations 15 to 27 of SEBI (LODR) Regulations, 2015 apply to a listed entity which has listed its non-convertible debt securities and has an outstanding value of listed non-convertible debt of Rupees Five Hundred Crore and above.

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 10 Jun 2024 Term Loan Long Term 7.29 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 2.50 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 12.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Term Loan Long Term 1.09 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 17.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 37.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 21.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 3.79 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 23.33 ACUITE BBB- | Stable (Reaffirmed) 15 Feb 2024 Term Loan Long Term 12.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Proposed Term Loan Long Term 1.09 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Term Loan Long Term 7.29 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Term Loan Long Term 3.79 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Proposed Non Convertible Debentures Long Term 5.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Term Loan Long Term 23.33 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Proposed Long Term Bank Facility Long Term 20.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 17.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 37.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 21.00 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) Term Loan Long Term 2.50 ACUITE BBB- | Stable (Downgraded from ACUITE BBB | Stable) 07 Nov 2023 Term Loan Long Term 23.33 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Proposed Long Term Bank Facility Long Term 20.00 ACUITE BBB | Stable (Assigned) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 17.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 37.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 21.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Term Loan Long Term 2.50 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Term Loan Long Term 12.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Proposed Term Loan Long Term 1.09 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Term Loan Long Term 7.29 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Term Loan Long Term 3.79 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) Proposed Non Convertible Debentures Long Term 5.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable) 28 Jun 2023 Term Loan Long Term 7.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 10.00 ACUITE BBB+ | Stable (Assigned) Proposed Non Convertible Debentures Long Term 5.00 ACUITE BBB+ | Stable (Assigned) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 17.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 37.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 21.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 16.89 ACUITE BBB+ | Stable (Reaffirmed) Proposed Term Loan Long Term 6.59 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 9.52 ACUITE BBB+ | Stable (Reaffirmed) 28 Jun 2022 Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 17.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 37.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 21.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) Proposed Long Term Loan Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 50.00 ACUITE 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 INE411R07103 Non-Convertible Debentures (NCD) 12 Nov 2021 13.45 25 Oct 2024 30.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07111 Non-Convertible Debentures (NCD) 21 Dec 2021 13.30 20 Dec 2024 12.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07129 Non-Convertible Debentures (NCD) 23 Dec 2021 12.30 23 Dec 2024 37.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07137 Non-Convertible Debentures (NCD) 31 Mar 2022 12.75 07 Mar 2025 21.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07152 Non-Convertible Debentures (NCD) 01 Jul 2022 12.90 30 Jun 2025 30.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07194 Non-Convertible Debentures (NCD) 29 Mar 2023 12.50 29 Mar 2026 20.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07186 Non-Convertible Debentures (NCD) 26 Sep 2022 13.25 31 Jul 2025 10.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable INE411R07111 Non-Convertible Debentures (NCD) 21 Dec 2021 13.30 20 Dec 2024 5.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( 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. 20.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.09 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) Indian Overseas Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 17 Oct 2026 7.29 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) A U Small Finance Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Oct 2024 3.79 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 10 Mar 2027 23.33 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) A U Small Finance Bank Not avl. / Not appl. Term Loan 29 Oct 2021 Not avl. / Not appl. 03 Nov 2023 2.50 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- ) State Bank of India Not avl. / Not appl. Term Loan 29 Mar 2022 Not avl. / Not appl. 29 Jan 2026 12.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )

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

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Shabad Palakkal 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.