Press Release August 16, 2024 ARMAN FINANCIAL SERVICES LIMITED Rating Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	70.00	ACUITE A | Stable | Upgraded	-
Non Convertible Debentures (NCD)	130.00	ACUITE A | Stable | Upgraded	-
Non Convertible Debentures (NCD)	45.00	PP-MLD | ACUITE A | Stable | Upgraded	-
Total Outstanding	245.00	-	-

Rating Rationale

Acuité has upgraded the long-term rating from ‘ACUITE A-’ (read as ACUITE A minus) to ‘ACUITE A’ (read as ACUITE A)' on the Rs.70.00 Cr. bank facility of Arman Financial Services Limited (AFSL). The outlook is 'Stable'. Acuité has upgraded the long-term rating from ‘ACUITE A-’ (read as ACUITE A minus) to ‘ACUITE A’ (read as ACUITE A)' on the Rs. 130.00 Cr. Non Convertible Debentures of Arman Financial Services Limited (AFSL). The outlook is 'Stable'. Acuité has upgraded the long-term rating to  ‘PP-MLD ACUITE A' (read as Principal Protected Market Linked Debentures ACUITE A) from ‘PP-MLD ACUITE A-’ (read as Principal Protected Market Linked Debentures ACUITE A minus) on the Rs. 45.00 Cr. Principal Protected Market Linked Debentures of Arman Financial Services Limited (AFSL). The outlook is 'Stable'. ­Rationale for the rating. The rating continues to factor in the group’s established track record of operations in three product segments i.e Micro Finance, Micro Small and Medium Enterprise (MSME) and two wheeler finance supported by experienced management team. The ratings further takes into account the group’s healthy resource raising ability and healthy liquidity buffers. The group has well diversified funding profile with a lender base of over 30 banks and financial institutions. The rating further factors in growth in the scale of operations with rise in AUM from Rs. 1,943 Cr. as on March 31, 2023 to Rs. 2639 Cr. as on March 31, 2024. Further, with a view to achieve deeper penetration, the group has expanded in the past four years into newer regions which has resulted in decline in concentration in the state of Gujarat from 32.76 percent in FY22 to 26.88 percent in FY24. Additionally, the group's profitability improved in FY24 as marked by RoAA (on-balance sheet assets) of 7.48 percent (P.Y: 5.78percent). The group reported a consolidated PAT of Rs. 173.57 Cr. in FY2024 (Rs. 93.81 Cr. in FY2023; Rs. 31.72 Cr. in FY2022). The improvement in earnings profile is also backed by increase in overall yield on advances through MSME financing as well as removal of interest rate cap on microfinancing. The rating is however constrained by a moderate albeit improving capital base; commensurate with the size and unsecured nature of the portfolio. Further, the gearing at group level stood moderate at 2.12 times as of March 31, 2024. Going forward, the ability of the group to profitably scale up its operations while mitigating asset quality risk would be a key rating monitorable.

About the Company

­Incorporated in 1992 and promoted by Mr. Jayendra Patel, Arman Financial Services Limited (together with Namra Finance Limited referred to as “Arman Group”) is a non-deposit taking Non-Banking Financial Company registered with RBI. Arman commenced its operations with asset backed finance lending in the state of Gujarat. Following the RBI directive for creating a separate category of NBFC for lending to micro finance sector, the company was the first in India to obtain "NBFC-MFI" license for its wholly owned subsidiary -Namra Finance Limited (Namra) on February 14, 2013. In March 2017, Arman Financial Services Limited also commenced MSME Lending Business. The Company (Arman and Namra together) is mainly engaged into micro-financing and asset backed financing. The company offers two-wheeler and MSME financing and Joint Liability Group (JLG) financing. It is registered in Ahmedabad Gujarat. Arman Financial Services Limited, on a consolidated basis, operates in 10 states i.e Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttarakhand, Rajasthan, Jharkhand, Telangana, Haryana and Bihar spread across 149 districts through a network of 402 branches with Assets Under Management (AUM) at Rs 1,642.15 Cr. as on December 31, 2022. Arman Financial Services Limited’s equity shares were listed on BSE in 1995. Currently, Mr. Jayendrabhai Bhailalbhai Patel, Mrs. Ritaben Jayendrabhai Patel, Mr. Alok Prasad, Mr. Yash Kaushik Shah, Mr. Aalok Jayendra Patel, Mr. Aakash Jayendra Patel, Mrs. Geeta Haresh Solanki are directors of the company.

About the Group

­Namra Finance Limited (NFL) is a wholly owned subsidiary of AFSL which is a Non-Deposit taking NBFC registered with Reserve Bank of India, promoted by Mr. Jayendra Patel. Prior to May 2013, AFSL was engaged in the business of two-wheeler financing and microfinance lending business through Joint Liability Group (JLG) model. However, NFL got an NBFC – Micro Finance Institution license from RBI on February 14, 2013 and from May 2013, entire new microfinance lending is being carried out by NFL. Microfinance lending is presently the largest business segment of the group contributing ~83 percent of the total Assets under Management (AUM) as on March 31, 2023.

Unsupported Rating

­Not Applicable.

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité has consolidated the business and financial risk profiles of AFSL and NFL (Hereinafter referred to as ‘Arman Group’) for arriving at the rating. The consolidation is in view of common promoters and management, integrated businesses, shared brand name, and significant operational and financial linkages between these entities.

Key Rating Drivers

Strength

­Established track record of operations with experienced promoters and management . AFSL has been engaged in the financing business since 1992 and has demonstrated a long track record of operations through various business cycles. Arman commenced its operations with asset backed finance lending in the state of Gujarat and has built a strong experience of 29 years in the industry. Following the RBI directive for creating a separate category of NBFC for lending to micro finance sector, the company was the first in India to obtain "NBFCMFI" license for its wholly owned subsidiary - Namra Finance Ltd (Namra) on February 14, 2013. Accordingly, all the assets related to micro finance were transferred to Namra Finance Limited (NFL). In 2017, company began its MSME loan product segment. The group has geographical presence in the states of Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, Uttarakhand, Rajasthan, Haryana and Bihar with a network of 319 branches spread across 120 districts as on March 31, 2024. The company is promoted by Mr. Jayendra Patel, Vice Chairman and Managing Director, who has 35 years of senior managerial and board level experience in the finance sector. Mr. Patel is the founder member of Gujarat Finance Companies Association. He is supported by Mr. Aalok Patel, Joint Managing Director, who is also on the Board of the company and has more than 15 years of experience in the financial sector. Further, Mr. Alok Prasad is the present Chairman on the Board of AFSL, who is also on the Board of the company and is having 35 years of experience in regulatory, banking and financial services. He has been associated with MFIN as Founder Chief Executive Officer. The Board is well represented by nine directors with adequate and relevant experience in the corporate and finance domains. Acuité believes that the established presence of the promoters and management coupled with effective guidance from the directors on the board, will support the business risk profile of the company in the near to medium term. Increased scale of operations. The group’s operations have seen an improvement with rise in AUM from Rs. 1,943 Cr. as on March 31, 2023 to Rs. 2639 Cr. as on March 31, 2024. Further, with a view to achieving deeper penetration, the group has in the past 4 years, expanded into newer regions. As such, the company’s branch size increased from 80 branches as on March 2017 to 402 branches as on March 31, 2024 which has gradually resulted in reduced concentration of AUM in the state of Gujarat. The company has three major segments- JLG (Micro-Finance through Namra Finance Limited), MSME and two wheeler loan, whereby MFI-JLG contributes 81.70 percent of the Total AUM as on March 31, 2024 followed by MSME (13.1 percent of the total AUM) and Two wheeler loans (3.13 percent of the total AUM). Acuité believes that company has demonstrated the resilience to grow across various business cycles coupled with diversification in three segments. Improving profitability; strong resource raising ability. The group's profitability improved in FY24 as marked by RoAA (on-balance sheet assets) of 7.48 percent (P.Y: 5.78 percent). The group reported a consolidated PAT of Rs. 173.57 Cr. in FY2024 (Rs. 93.81 Cr. in FY2023). The improvement in earnings profile is also backed by increase in overall yield on advances through MSME financing as well as removal of interest rate cap on microfinancing. Acuité believes that company's ability to sustain the growth momentum and curb the credit costs will be a key monitorable. The group has established relationships with over 30 lenders; public and private sector bank and financial institutions. The debt profile of the group remains diverse with borrowings through Banks & SFBs (33 percent), DFIs (2 percent), NBFC/FIs (26 percent), borrowings through securitization (17 percent), ECB (9 percent) and debt securities (13 percent) as on March 31, 2024. Going forward, Acuité expects the group to continue to benefit from a diversified funding mix.??????????????

Weakness

­Moderate asset quality; albeit improving. The outbreak of COVID and the intermittent lockdowns significantly impacted the credit profile of most of the borrowers thereby impacting asset quality during FY21. Given the challenges and stress experienced by vehicle and micro finance sector, company reported GNPA (on-book; consolidated) at 2.91 percent as on March 31, 2024 as against 2.79 percent as on March 31, 2023 (4.44 percent as on March 31, 2022). However, on account of improved collections and write-offs in FY24, the GNPA as on March 31, 2024 stood at 2.91 percent; further remained stable to 2.79 percent as on Mar-23 on account of increase in portfolio. The on-time portfolio (AUM basis) as on March 31, 2024 stood at 94.29 percent vis-à-vis 95.49 percent as on March 31, 2023. Modest capital structure. The group’s net worth stood at Rs. 812.69 Cr. as on March 31, 2024 (Rs. 365.69 Cr. as on March 31, 2023). AFSL has adequate capitalization level with Capital Adequacy Ratio of 62.72 percent as on March 31, 2024 (32.62 percent as on March 31, 2023). The group's consolidated gearing levels stood moderate at 2.12 times as on March 31, 2024. (4.39 times as on March 31, 2023).

ESG Factors Relevant for Rating

Arman Financial Services Limited (AFSL) belongs to the NBFC sector which complements bank lending in India. Some of the material governance issues for the financial services sector are policies and practices with regard to business ethics, board diversity and independence, compensation structure for board and KMPs, role of the audit committee and shareholders’ rights. On the social aspect, some of the critical issues for the sector are the contributions to financial inclusion and community development, responsible financing including environmentally friendly projects and policies around data privacy. The industry, by nature has a low exposure to environmental risks. AFSL focuses towards overcoming the financial inclusion gap through vehicle finance and microfinance in semi-rural and rural areas. The entity has corporate governance policies on whistle-blower programme and vigil mechanism. The NBFC outlines the policies related to diversity, sexual harassment, and ethical business practices in its code of conduct and also has a high transparency in terms of disclosures related to board and management compensation. AFSL’s CSR policy focuses on development of marginalized communities and initiatives such as Hygiene Awareness programmes among rural women in Gujarat. As part of the ‘green initiative’, the company has switched to electronic mode to send annual reports or Notice of AGM to the shareholders and depository participants.

Rating Sensitivity

­Timely infusion of capital. Movement in leverage. Movement in asset quality and collection efficiency. Movement in capitalization and liquidity buffers Movement in profitability metrics.

Liquidity Position

Adequate

­AFSL has adequately matched asset liability profile with a cumulative surplus in all maturity buckets. The group has adequate liquidity buffers by way of sufficient cash and cash equivalents of Rs. ~524.73 Cr. as on March 31, 2024.

Outlook: Stable

­Acuité believes that the group will maintain a ‘Stable’ outlook over the near to medium term owing to its established presence in the key operating segment (i.e. MSME, MFI) and adequate capitalization buffers. The outlook may be revised to ‘Positive’ in case of significant and sustainable growth in AUM while maintaining asset quality, gearing levels and improved profitability. Conversely, the outlook may be revised to ‘Negative’ in case of significantly higher than expected asset quality pressures or profitability margins.

Other Factors affecting Rating

None.

Key Financials - Standalone / Originator

­ Particulars Unit FY24 (Actual) FY23(Actual) Total Assets Rs. Cr. 844.01 563.83 Total Income* Rs. Cr. 90.39 65.30 PAT Rs. Cr. 37.90 28.36 Net Worth Rs. Cr. 534.88 229.36 Return on Average Assets (RoAA) (%) 5.38 6.40 Return on Average Net Worth (RoNW) (%) 9.92 15.32 Total Debt/Tangible Net worth (Gearing) Times 0.54 1.40 Gross NPA (%) 2.65 2.64 Net NPA (%) 0.92 0.63 *Total income equals to Net Interest Income

Key Financials (Consolidated)

­ Particulars Unit FY24 (Actual) FY23(Actual) Total Assets Rs. Cr. 2615.90 2022.70 Total Income* Rs. Cr. 395.72 251.65 PAT Rs. Cr. 173.57 93.81 Net Worth Rs. Cr. 812.69 365.69 Return on Average Assets (RoAA) (%) 7.48 5.78 Return on Average Net Worth (RoNW) (%) 29.46 32.44 Total Debt/Tangible Net worth (Gearing) Times 2.12 4.39 Gross NPA (%) 2.91 2.79 Net NPA (%) 0.31 0.16 *Total income equals to Net Interest Income

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable.

Any Other Information

­None.

Applicable Criteria

• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm • Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • 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

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 18 Apr 2024 Proposed Non Convertible Debentures Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 39.79 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.37 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.43 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 24.00 ACUITE A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 50.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) 03 Apr 2024 Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 39.79 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.37 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.43 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 24.00 ACUITE A- | Stable (Reaffirmed) 09 Feb 2024 Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 25.00 ACUITE A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 24.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 39.79 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.37 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.43 ACUITE A- | Stable (Reaffirmed) 21 Aug 2023 Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.29 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.33 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 31.97 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 49.00 ACUITE A- | Stable (Reaffirmed) 06 Jul 2023 Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 31.97 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.33 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.29 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 25.00 ACUITE A- | Stable (Assigned) Proposed Non Convertible Debentures Long Term 25.00 ACUITE A- | Stable (Assigned) 19 May 2023 Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 31.97 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.33 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.29 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Reaffirmed) 12 Jan 2023 Term Loan Long Term 4.29 ACUITE A- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Market Linked Debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Proposed Market Linked Debentures Long Term 25.00 ACUITE PP-MLD A- | Stable (Assigned) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.29 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 17.30 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 27.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) 30 Sep 2022 Cash Credit Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.42 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 13.60 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 27.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 6.86 ACUITE A- | Stable (Reaffirmed) Proposed Secured Non-Convertible Debentures Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Proposed Market Linked Debentures Long Term 20.00 ACUITE PP-MLD A- | Stable (Assigned) 11 Apr 2022 Proposed Long Term Bank Facility Long Term 11.93 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 27.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 6.86 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.67 ACUITE A- | Stable (Reaffirmed) Proposed Secured Non-Convertible Debentures Long Term 30.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.56 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.06 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.42 ACUITE A- | Stable (Reaffirmed) 08 Nov 2021 Proposed Long Term Bank Facility Long Term 11.93 ACUITE A- | Stable (Assigned) Term Loan Long Term 1.67 ACUITE A- | Stable (Assigned) Term Loan Long Term 6.86 ACUITE A- | Stable (Assigned) Cash Credit Long Term 27.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 1.42 ACUITE A- | Stable (Assigned) Term Loan Long Term 3.06 ACUITE A- | Stable (Assigned) Term Loan Long Term 0.56 ACUITE A- | Stable (Assigned) Cash Credit Long Term 0.50 ACUITE A- | Stable (Assigned) Cash Credit Long Term 10.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 2.00 ACUITE A- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 2.46 ACUITE A- | 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 A U Small Finance Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) IDFC First Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable INE109C07030 Non-Convertible Debentures (NCD) 31 Mar 2022 11.80 31 Dec 2024 30.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable INE109C07089 Non-Convertible Debentures (NCD) 19 Jul 2023 8.82 19 Jul 2025 25.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable INE109C07089 Non-Convertible Debentures (NCD) 19 Jul 2023 8.82 19 Jul 2025 24.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable INE109C07097 Non-Convertible Debentures (NCD) 25 Apr 2024 10.20 25 Jan 2026 49.80 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable INE109C07055 Principal protected market linked debentures 04 Oct 2022 Not avl. / Not appl. 04 Apr 2024 20.00 Complex PP-MLD | ACUITE A | Stable | Upgraded ( from ACUITE PP-MLD A- ) Not Applicable INE109C07063 Principal protected market linked debentures 24 Jan 2023 Not avl. / Not appl. 24 Jul 2024 25.00 Complex PP-MLD | ACUITE A | Stable | Upgraded ( from ACUITE PP-MLD A- ) Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.16 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.20 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) A U Small Finance Bank Not avl. / Not appl. Term Loan 15 Oct 2018 Not avl. / Not appl. 15 Oct 2021 0.56 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) A U Small Finance Bank Not avl. / Not appl. Term Loan 31 Jul 2019 Not avl. / Not appl. 31 Jul 2022 3.06 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) IDFC First Bank Limited Not avl. / Not appl. Term Loan 22 Dec 2020 Not avl. / Not appl. 22 Dec 2022 0.29 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) Kotak Mahindra Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 10 Mar 2025 15.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) IDFC First Bank Limited Not avl. / Not appl. Term Loan 12 Mar 2024 Not avl. / Not appl. 12 Jun 2026 20.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) State Bank of India Not avl. / Not appl. Term Loan 30 Mar 2022 Not avl. / Not appl. 30 Mar 2025 6.00 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- ) IDFC First Bank Limited Not avl. / Not appl. Term Loan 08 Mar 2022 Not avl. / Not appl. 08 Mar 2024 1.43 Simple ACUITE A | Stable | Upgraded ( from ACUITE A- )

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

­ Sr.No Company 1) Namra Finance Limited. 2) Arman Financial Services Limited.

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Tejas Chaugule Associate Analyst - Rating Operations Tel: 022-49294065 tejas.chaugule@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@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.