|
|
| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 15.00 | ACUITE BBB- | Stable | Assigned | - | RBI |
| Bank Loan Ratings | 0.00 | 33.52 | ACUITE BBB- | Stable | Reaffirmed | - | RBI |
| Non Convertible Debentures (NCD) | 0.00 | 10.00 | ACUITE BBB- | Stable | Reaffirmed | - | MCA |
| Total Outstanding | 0.00 | 58.52 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
|
Rating Rationale |
|
Acuité has reaffirmed the long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to the Rs. 33.52 Cr. bank loan facilities of AARSH FINCON LIMITED (ERSTWHILE AKME FINCON LIMITED) (AFL). The outlook is 'Stable'.
Acuité has reaffirmed the long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to the Rs. 10.00 Cr. Non-Convertible Debentures of AARSH FINCON LIMITED (ERSTWHILE AKME FINCON LIMITED) (AFL). The outlook is 'Stable'. Acuité has assigned the long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to the Rs. 15.00 Cr. bank loan facilities of AARSH FINCON LIMITED (ERSTWHILE AKME FINCON LIMITED) (AFL). The outlook is 'Stable'. Rationale for the Rating The rating continues to factor is the experienced management, established presence in its areas of operation and adequate capitalization levels. The rating takes into account the ability of the company to raise funds through equity infusion at regular intervals and expectations of further equity infusion of Rs. 8.59 Cr. in near to medium term. The company’s networth stood at Rs. 47.63 Cr. with a gearing of 1.93 times as on March 31, 2026. The CRAR stood comfortable at 36.26 percent of which Tier 1 Capital stood at 35.39 percent as on March 31, 2026. The GNPA and NNPA improved from 2.18 percent and 1.70 percent respectively as on March 31, 2025 to 2.02 percent and 1.49 percent respectively as on March 31, 2026. The rating is, however, constrained by modest scale of operations coupled with modest financial performance and geographic concentration. Acuite notes a slight degrowth in the operations as denoted by decline in AUM, Disbursements and earning profile. The AUM reduced from Rs. 132.72 Cr, as on March 31, 2025 to Rs. 119.49 Cr. as on March 31, 2026 which was mainly due to inability to raise funds at low costs for disbursements. The company’s disbursements reduced from Rs. 69.94 Cr. during FY2025 to Rs. 31.30 Cr. during FY2026. The company’s PAT reduced from Rs 2.17 Cr. during FY2025 to Rs 1.70 Cr. during FY2026 owing to increase interest expenses, operational costs and tax adjustments. AFL’s portfolio is exposed to a medium to high geographical concentration risk, as all the disbursements are concentrated in the states of Rajasthan, Delhi and Orissa as of March 31 2026. |
| About the company |
|
Udaipur based; AARSH FINCON LIMITED (ERSTWHILE AKME FINCON LIMITED) was incorporated in 1996 as a non-deposit taking non-banking finance company (NBFC). The company is engaged in financing of two wheelers, three/four wheelers, commercial vehicles and loan against property (LAP) towards SME borrower base. AFL is promoted and managed by Mr. Anil Kumar Jain. The company presently operates through a network of 64 branches spread across Rajasthan, Delhi, Orissa and Gujarat as on March 31, 2026.
|
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of AARSH FINCON LIMITED to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Experienced Management
AARSH FINCON LIMITED (AFL), a Non-Deposit accepting Non-Banking Financial Company, commenced its operations in 1996. The operations of the company are manged by Mr. Anil Kumar Jain (Managing Director). He has over two decades of experience in non-banking and financial services. Mrs. Shilpa Jain (Executive Director) and Mrs Vimal Jain (Executive Director) actively manage and supervise the day-to-day operations of the company. Mr Praveen Kumar (Additional Director) is responsible for corporate administration & relationship management. Further, AFL has long track record of operations in the vehicle financing segment. The company’s AUM stood at Rs 119.49 Cr. as on March 31, 2026 with a network of 64 branches across 4 states. Acuité believes that AFL will continue to benefit from its established presence in the financial services industry along with the experienced management. Healthy Capitalization levels The company’s networth stood at Rs. 47.63 Cr. as on March 31, 2026 as compared to Rs. 45.92 Cr. as on March 31, 2025. The gearing of the company improved from 2.44 times as on March 31, 2025 to 1.93 times as on March 31, 2026. The CRAR improved to 36.26 percent (of which Tier 1 Capital stood at 35.39 percent) as on March 31, 2026 from 31.84 percent (of which Tier 1 Capital stood at 31.05 percent) as on March 31, 2026. Acuite believes that AFL will benefit from continued support of promoters going forward. |
| Weakness |
| Moderate asset quality and financial performance
The GNPA and NNPA improved from 2.18 percent and 1.70 percent respectively as on March 31, 2025 to 2.02 percent and 1.49 percent respectively as on March 31, 2026. AFL registered a total income (net of interest expense) of Rs. 11.01 Cr. in FY2026 as against Rs. 11.42 Cr. in FY2025. NIM and ROAA stood at 9.01 percent and 1.12 percent for FY2026 as compared to 9.65 percent and 1.57 percent for FY2025, respectively. The company’s PAT reduced from Rs 2.17 Cr. during FY2025 to Rs 1.70 Cr. during FY2026. Acuite believes that going forward ability of the company to grow its loan portfolio while improving its profitability will be key monitorable. Modest scale of operations coupled with geographic concentration risk The company has modest scale of operations with an AUM of Rs. 119.49 Cr. as on March 31, 2026, as compared to Rs 132.72 Cr. as on March 31, 2025. AFL’s portfolio is exposed to high geographical concentration risk, as ~99 per cent of the total portfolio is concentrated in only the states of Rajasthan, Orissa and Delhi as on March 31, 2026. However, AFL has expanded to the state of Gujarat to minimize the geographic concentration risk. Generally, the risk profile of NBFCs with a geographically diversified portfolio is more resilient compared to that of entity with a geographically concentrated portfolio. Acuité believes that modest scale of operations coupled with geographic concentration in its portfolio will continue to weigh on the company’s credit profile over the near to medium term. |
Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
|
| Potential triggers (individual or collective) for a downward rating action: |
|
| All Covenants |
| Covenants are not available as it is a Proposed NCD |
| Liquidity Position |
| Adequate |
|
AFL’s ALM statement as on March 31, 2026 shows positive cumulative mismatch in all the buckets and its liquidity position is adequate marked by monthly collections efficiency of approximately 97 percent. AFL has Rs. 60.64 Cr. of total outflows within one year and Rs 66.96 Cr. of total inflows due within one year, which seems to be a managed liquidity situation. Further, AFL has cash and cash equivalents of Rs. 0.35 Cr. and undrawn cash credit limit of Rs. 2.33 Cr. as on March 31, 2026.
Acuité believes that the ability of the company to raise long term funding and improve collections will be critical to maintaining liquidity profile at adequate levels. |
| Outlook: Stable |
| |
| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
*Total Income is net of interest expense **Networth is calculated excluding revaluation reserve |
||||||||||||||||||||||||||||||||||||||||
| Status of non-cooperation with previous CRA (if applicable): |
| 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 |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
| |
|
Contacts |
List of instruments and names of regulators of the instruments |
