Press Release April 04, 2025 CREDIT WISE CAPITAL PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE BB+ | CE | Downgraded | Issuer not co-operating*	-
Total Outstanding	15.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Errata- This Erratum publishes the rectification in the rating suffix (CE) that was missed in the original press release dated Oct 09, 2024. Concurrently, the Assessment of Adequacy of Credit Enhancement section has been added. Additionally, the Applicability Criteria has been revised.

Rating Rationale

­­Acuite has downgraded the long-term rating to ‘ACUITE BB+ (CE)’ (read as ACUITE double B plus (Credit Enhancement)) from ‘ACUITE BBB+ (CE)’ (read as ACUITE triple B plus (Credit Enhancement)) on the Rs.15.00 Cr. bank loan facilities of Credit Wise Capital Private Limited (CWCPL). The rating is now flagged as "Issuer not corporating' and is based on the best avaliable information. The rating has been downgraded on account of  information risk.

About the Company

­Credit wise Capital Private Limited is digital-fintech non-banking finance company (NBFC) having business of two-wheeler finance incorporated in 2018. It was founded and promoted by Aalesh Avlani with multiple renowned business houses, including Greshma Group, Wallfort Group, MJ Shah Group, and the Shanti Group. The company is serving majorly in four states, including Maharashtra, Gujarat, Karnataka, and Telangana.­

About Northern Arc Capital Limited (“Northern Arc”)

­Northern Arc, previously known as IFMR Capital Finance Ltd. is a Non-Deposit taking NonBanking Financial Company (ND-NBFC) incorporated in 1989. It is involved in the placement (arranging funding for its clients via loan syndication, securitisation and assignment among others) and lending business. The company acts as a link between mainstream capital markets investors and highquality last mile lending institutions and businesses. The company’s business is categorized as finance sector exposure, i.e., microfinance, affordable housing finance, commercial vehicle finance, consumer finance, agri-finance and small business loans, and non-finance sector exposure, i.e., mid-market finance and corporates.

Unsupported Rating

­Acuite BB+

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 noncooperation by the issuer along with an 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.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­Acuite has not factored the benefit from the CE structure.

Rating Sensitivities

"­­No information provided by the issuer / available for Acuite to comment upon."

Liquidity Position

"­No information provided by the issuer / available for Acuite to comment upon."

Outlook:Not Applicable

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Other Factors affecting Rating

­None

Key Financials:

­ Particulars Unit FY23 (Provisional) FY22 (Actual) Total Assets Rs. Cr. 345.08 209.91 Total Income* Rs. Cr. 42.86 20.27 PAT Rs. Cr. 1.67 1.04 Net Worth Rs. Cr. 82.35 80.28 Return on Average Assets (RoAA) (%) 0.60 0.77 Return on Average Net Worth (RoNW) (%) 2.06 1.65 Debt/Equity Times 3.09 1.56 Gross NPA (%) 0.95 0.73 Net NPA (%) 0.71 0.54 *Total income equals to Net Interest Income plus other income.

Status of non-cooperation with previous CRA

­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 • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.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 12 Jul 2023 Term Loan Long Term 15.00 ACUITE BBB+ (CE) | Stable (Assigned) 13 Apr 2023 Proposed Term Loan Long Term 15.00 ACUITE Provisional BBB+ (CE) | Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Hinduja Leyland Finance Ltd. Not avl. / Not appl. Term Loan 30 Mar 2023 Not avl. / Not appl. 30 Sep 2025 15.00 Simple ACUITE BB+ | CE | Downgraded | Issuer not co-operating*

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

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Contacts

Mohit Jain Senior Vice President - Rating Operations Nivedita Gokul 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.