Press Release February 27, 2025 ICL FINCORP LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
BOND	50.00	ACUITE BBB- | Stable | Reaffirmed	-
Non Convertible Debentures (NCD)	200.00	ACUITE BBB- | Stable | Reaffirmed	-
Total Outstanding	250.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to Rs.200.00 Cr. Non Convertible Debentures of ICL fincorp limited (ICLFL). The outlook is 'Stable'. Acuite has also reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to Rs.50 Cr. Bonds of ICL fincorp limited (ICLFL). The outlook is 'Stable'. Rationale for rating  The rating continues to factor in the experience of promotors in the gold loan financing segment and moderate earning profile. ICLFL's AUM has improved to Rs.571.95 Cr. as on December 31, 2024 as against Rs.472.17 Cr. as on March 31st 2024 and Rs.396.10 Cr. as on March 31st 2023.  ICLFL's net interest margins has improved at 18.62 percent in FY24 as against 15.72 percent in FY23 . The PAT for 9MFY24 improved to Rs. 4.44 Cr. from Rs.1.9 Cr. in FY24. The rating however, remains constrained by geographical concentration, limited financial flexibility and highly competitive business of gold loans. Going forward, the company's ability to raise capital, profitable scale up the loan portfolio while maintaining the capital adequacy and asset quality metrics will be key rating monitorable.

About the company

­ICL Fincorp Limited (ICLFL) was established in 1991 and started its non-banking financial services operation in 1999 with the approval of Reserve Bank of India. The company acquired a Chennai based NBFC company, Jawahar Finance Company, and renamed it as ‘Irinjalakuda Credits and Leasing Company Limited’ in 2004. The company was renamed to ‘ICL Fincorp Ltd’ in May 2016. IFL is based in Irinjalakuda, Thrissur, Kerala. The company started lending against consumer durables and later ventured into gold loans in 2013. The company currently offers gold loans, small business loans, personal loans, loan against property (LAP), and two wheeler loan. The promoter is also engaged in health care, textiles, chits, and tours and travel businesses through separate companies. The registered office of the company is in Chennai. The directors of the company are Mr. Kuzhuppilly Govinda Menon Anilkumar, Ms. Umadevi Anilkumar, Mr. Ambadath Aiyyappan Balan, Mr. Kakkeri Kochakkan Wilson,  Mr. Sreejith Surendran Pillai and Mr. Shinto Stanly.

Unsupported Rating

­Not Applicable.

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of ICL Fincorp limited to arrive at the rating.

Key Rating Drivers

Strength

­Experienced promotors and established track record of operations The promotors have more than three decades of experience and a strong understanding of customer profile in the region of operations. Given the company's long track record of presence of more than three decades in State of Kerala, the company has built good creditable with borrowers. The company is managed by Mr. K G Anil Kumar, the managing director of the company has long standing experience in various businesses and financial services. The day to day operations of the company are managed by Mr. K G Anil Kumar and Ms. Uma Devi Anil Kumar who is supported by team of proffesionals. Acuite belives that ICLFL will continue to benefit from experience of promotors and established track record of operations in gold loan segment. Stable Business growth aided by continuous expansion The company has demonstrated stable growth in its business metrics as evident by growth in AUM to Rs.571.95 Cr. as on December 31st 2024 as against  Rs. 472.17 Cr. as on March 31st 2024. Total disbursements in FY24 stood at Rs. 1670.78 Cr. as against Rs.1368 Cr. in FY2023. High proportion of gold loans in total AUM is also attributable to company’s expertise in gold loans and opex in new states outside of Kerala like Andhra Pradesh, Karnataka, Telangana, Tamil Nadu and Orissa. Increase in outstanding gold loan portfolio would make the portfolio more secure and would reduce the risk of losses. Going forward company is planning to diversify into other segment like vehicle loan, business loan, personal loans and property loans. Geographical concentration; albeit improving ICLFL has presence majorly in south Indian states of Kerala, Tamil Nadu, Telangana, Karnataka, Andhra Pradesh and Orissa. Company’s loan book is majorly concentrated in Kerala with the share of 27.04 percent of total portfolio. Decline is attributable to company opex in other states in South India and Orissa. Further, company has expanded it's presence in Maharashtra and Gujrat.

Weakness

­Timely infusion of capital in order to maintain CRAR as per regulatory requirements Capital to risk assets ratio(CRAR) stood at 15 percent as on March 31st 2024 as against 18.99 percent as on March 31 2023. The gearing ratio of the company stood at 5.53 times as on 9MFY24 as against 5.11 times as on March 31st 2024. Timely infusion of capital to facilitate capitalisation requirement as per regulatory requirement would be key rating monitorable. Competitive nature of the Industry ICLFL is exposed to stiff competition from other varied sized NBFCs. The lending industry focused around gold, two wheeler vehicle loan, LAP and secured business loan are highly fragmented with unorganized lenders also vying for the same set of borrowers. However, ICLFL professional management and focused approach towards these lending and conservative underwriting policy standards is expected to grow its business while mitigating the risks attached to them.

Rating Sensitivity

­ ­Movement in capital structure and timely infusion of capital Movement in liquidity buffers Movement in earning profile Changes in regulatory environment

All Covenants

­The Company agrees, confirms and undertakes to comply with and maintain the following Financial Covenants, at all times till the Final Settlement Date:   The below Financial covenants shall be tested on an annual basis (March end of each financial year) basis based on audited results of the relevant period: Consolidated Gross Debt / EBITDA – 1) Not more than 4.5 times for the financial year 2023-2024;                                                               2) Not more than 4.0 times for the financial year 2024-2025;                                                               3) Not more than 3.5 times for the financial year 2025-2026;                                                                  And then shall not be more than 3.0 times from Financial year 2026-2027 onwards. Security Cover Ratio                        -  Not less than 1.5 times of the Security cover until the final settlement date. In the event there is breach in the aforesaid Financial Covenants, the Issuer shall be permitted a time period of 30 (thirty) days from the date on which the Issuer becomes aware of such breach or the Debenture Trustee provides a written notice to the Issuer, whichever is earlier, to cure such breach by providing additional security or such other methods as may be mutually acceptable to the Issuer and the Debenture Trustee. For the purpose of the Financial Covenants, the following expressions have the meaning set out against them: “EBITDA” means earnings before Interest depreciation and tax, with respect to any period, earnings and other income of the issuer on consolidated basis before deduction of interest, tax, depreciation and amortization, share of joint ventures and associates and any exceptional items for that period. “Gross Debt” means for a relevant period, the Financial Indebtedness of the Issuer on a consolidated basis.

Liquidity Position

Adequate

­­ICLFL’s overall liquidity profile remains adequate with no negative cumulative mis-matches in near to medium term as per ALM dated December 31, 2024. The company had cash and cash equivalent of Rs. 0.68 Cr. as on March 31, 2024.

Outlook:

­Stable.

Other Factors affecting Rating

­None.

Key Financials - Standalone / Originator

­ Particulars Unit FY24 (Actual) FY23(Actual) Total Assets Rs. Cr. 613.34 523.68 Total Income* Rs. Cr. 86.28 62.98 PAT Rs. Cr. 1.90 3.13 Net Worth Rs. Cr. 91.11 83.63 Return on Average Assets (RoAA) (%) 0.33 0.64 Return on Average Net Worth (RoNW) (%) 2.18 4.00 Debt/Equity Times 5.11 4.68 Gross NPA (%) 1.51 3.83 Net NPA (%) 1.33 3.51 *Total income equals to Net Interest Income plus other income

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

­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 29 Feb 2024 Proposed Bond Long Term 50.00 ACUITE BBB- | Stable (Assigned) Proposed Non Convertible Debentures Long Term 50.00 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 12.67 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 1.19 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 0.32 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 3.94 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 8.08 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 12.35 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 18.75 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 21.21 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 10.41 ACUITE BBB- | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 11.08 ACUITE BBB- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 50.00 ACUITE BBB- | Stable (Assigned) 17 Oct 2023 Proposed Non Convertible Debentures Long Term 150.00 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 4.00 ACUITE Not Applicable (Withdrawn) Proposed Long Term Bank Facility Long Term 16.00 ACUITE Not Applicable (Withdrawn) Non-Covertible Debentures (NCD) Long Term 100.00 ACUITE Not Applicable (Withdrawn) 12 Dec 2022 Cash Credit Long Term 4.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 16.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Non-Covertible Debentures (NCD) Long Term 100.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)

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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 INE01CY077L6 Non-Convertible Debentures (NCD) 19 Apr 2024 11.00 19 May 2025 8.33 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077T9 Non-Convertible Debentures (NCD) 19 Apr 2024 11.50 19 Apr 2026 5.18 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077R3 Non-Convertible Debentures (NCD) 19 Apr 2024 12.00 19 Apr 2027 17.72 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077P7 Non-Convertible Debentures (NCD) 19 Apr 2024 12.50 18 Apr 2029 18.73 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077U7 Non-Convertible Debentures (NCD) 19 Apr 2024 0.00 19 May 2025 7.68 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077O0 Non-Convertible Debentures (NCD) 19 Apr 2024 0.00 19 Apr 2026 3.59 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077N2 Non-Convertible Debentures (NCD) 19 Apr 2024 0.00 19 Apr 2027 2.36 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077S1 Non-Convertible Debentures (NCD) 19 Apr 2024 11.75 19 Apr 2026 0.30 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077M4 Non-Convertible Debentures (NCD) 19 Apr 2024 12.25 19 Apr 2027 1.34 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077Q5 Non-Convertible Debentures (NCD) 19 Apr 2024 0.00 19 Dec 2029 9.76 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077V5 Non-Convertible Debentures (NCD) 31 May 2024 0.00 30 Jun 2025 1.18 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077W3 Non-Convertible Debentures (NCD) 31 May 2024 12.00 31 May 2027 3.72 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077X1 Non-Convertible Debentures (NCD) 31 May 2024 0.00 31 Jan 2030 0.64 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077Y9 Non-Convertible Debentures (NCD) 31 May 2024 0.00 31 May 2027 0.63 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077Z6 Non-Convertible Debentures (NCD) 31 May 2024 0.00 31 May 2026 0.15 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078A7 Non-Convertible Debentures (NCD) 25 Jun 2024 0.00 25 Feb 2030 0.54 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078B5 Non-Convertible Debentures (NCD) 25 Jun 2024 12.00 25 Jun 2027 1.61 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078C3 Non-Convertible Debentures (NCD) 25 Jun 2024 0.00 25 Jun 2027 1.34 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078D1 Non-Convertible Debentures (NCD) 23 Jul 2024 0.00 23 Mar 2030 0.70 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078E9 Non-Convertible Debentures (NCD) 23 Jul 2024 0.00 23 Jul 2027 1.60 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078F6 Non-Convertible Debentures (NCD) 23 Jul 2024 12.00 23 Jul 2027 2.12 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078I0 Non-Convertible Debentures (NCD) 19 Aug 2024 12.00 19 Aug 2027 1.98 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078H2 Non-Convertible Debentures (NCD) 19 Aug 2024 0.00 19 Aug 2027 0.33 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078G4 Non-Convertible Debentures (NCD) 19 Aug 2024 0.00 19 Apr 2030 0.50 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078L4 Non-Convertible Debentures (NCD) 04 Oct 2024 12.25 04 Oct 2028 1.87 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078M2 Non-Convertible Debentures (NCD) 04 Oct 2024 0.00 04 Oct 2028 1.03 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY078K6 Non-Convertible Debentures (NCD) 04 Oct 2024 0.00 04 Jun 2030 0.38 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077K8 Non-Convertible Debentures (NCD) 14 Dec 2023 0.00 14 Aug 2029 12.67 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077C5 Non-Convertible Debentures (NCD) 14 Dec 2023 12.25 14 Dec 2026 1.19 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077I2 Non-Convertible Debentures (NCD) 14 Dec 2023 11.75 12 Dec 2025 0.32 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077J0 Non-Convertible Debentures (NCD) 14 Dec 2023 12.50 14 Dec 2026 3.94 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077F8 Non-Convertible Debentures (NCD) 14 Dec 2023 12.00 12 Dec 2025 8.08 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077H4 Non-Convertible Debentures (NCD) 14 Dec 2023 11.50 14 Jan 2025 12.35 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077E1 Non-Convertible Debentures (NCD) 14 Dec 2023 12.50 14 Dec 2028 18.75 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077B7 Non-Convertible Debentures (NCD) 14 Dec 2023 12.00 14 Dec 2026 21.21 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077G6 Non-Convertible Debentures (NCD) 14 Dec 2023 11.50 12 Dec 2025 10.41 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable INE01CY077D3 Non-Convertible Debentures (NCD) 14 Dec 2023 11.00 14 Jan 2025 11.08 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Bond Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.69 Simple ACUITE BBB- | Stable | Reaffirmed

Contacts

Mohit Jain Senior Vice President - Rating Operations Tejas Chaugule 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.