Press Release DHARA MOTOR FINANCE LIMITED September 21, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	60.00	ACUITE BB- | Downgraded | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	60.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded the long term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from ‘ACUITE BB’ (read as ACUITE double B) on the Rs. 60.00 crore bank facilities of Dhara Motor Finance Limited (DMFL). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Company

­Incorporated in 1990, Dhara Motor Finance Limited is an Uttar Pradesh based NBFC company registered under RBI. In 2002, the company was converted into a Public Limited Company. The company was promoted by Mr. Raj Kumar Goel and others which was subsequently taken over by Mr. Gajendra Singh and family. The company is engaged in finance of old and new commercial vehicles. DMFL is registered with RBI as a NBFC and classified as Asset Finance Company (AFC) under ‘A’category. The company is operating mainly in western Uttar Pradesh, Uttarakhand, Delhi & NCR, Haryana and Rajasthan.

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 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:

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

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

Material Covenants

­Not Applicable

Liquidity Position

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

Outlook

Not Applicable

Other Factors affecting Rating

­Not Applicable

Status of non-cooperation with previous CRA

­None

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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

Note on Complexity Levels of the Rated Instrument

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 05 Jul 2021 Cash Credit Long Term 40.00 ACUITE BB (Downgraded and Issuer not co-operating*) Proposed Bank Facility Long Term 20.00 ACUITE BB (Downgraded and Issuer not co-operating*) 07 Apr 2020 Cash Credit Long Term 40.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Proposed Bank Facility Long Term 20.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) 30 Jan 2019 Proposed Long Term Loan Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 40.00 ACUITE BBB- | Stable (Reaffirmed) 02 Jan 2019 Cash Credit Long Term 40.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Cash Credit Long Term 20.00 ACUITE BBB- | Stable (Reaffirmed) 04 Oct 2018 Cash Credit Long Term 40.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Cash Credit Long Term 20.00 ACUITE BBB- | Stable (Assigned) 22 Mar 2018 Cash Credit Long Term 25.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Assigned) 22 Jan 2018 Cash Credit Long Term 25.00 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.) Rating Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 40.00 ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB ) Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 20.00 ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Radhika Kolwankar Analyst-Rating Operations Tel: 022-49294065 radhika.kolwankar@acuite.in	Varsha Bist Senior Manager-Rating Operations 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.