Press Release February 08, 2024 NAMRA FINANCE LIMITED February 09, 2024 Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE A- | Stable | Assigned	-
Bank Loan Ratings	422.00	ACUITE A- | Stable | Reaffirmed	-
Non Convertible Debentures (NCD)	40.00	ACUITE A- | Stable | Reaffirmed	-
Non Convertible Debentures (NCD)	42.00	PP-MLD | ACUITE A- | Stable | Reaffirmed	-
Total Outstanding	519.00	-	-

Rating Rationale

­Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 15.00 Cr. bank facility of Namra Finance Limited (NFL). The outlook is 'Stable'. Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 422.00 Cr. bank facilities (including proposed facilities) of Namra Finance Limited (NFL). The outlook is 'Stable'. ­Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 40.00 Cr. of Non Convertible Debentures of Namra Finance Limited (NFL). The outlook is 'Stable'. Acuité has reaffirmed the long-term rating of ‘PP-MLD ACUITE A-’ (read as Principal Protected Market Linked Debentures ACUITE A minus) on the Rs. 42.00 Cr. Principal Protected Market Linked Debentures (including proposed) of Namra Finance Limited (NFL). 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. 1,233 Cr. as on March 31, 2022 to Rs. 1,943 Cr. as on March 31, 2023. The AUM grew to Rs. 2,304 Cr. as on Sep-23. 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 57.20 percent in FY18 to 27.58 percent in FY23. (26.66 percent as on Sep-23). Additionally, the group's profitability improved in FY23 as marked by RoAA (on-balance sheet assets) of 5.78 percent (P.Y: 2.95 percent). The group reported a consolidated PAT of Rs. 93.81 Cr. in FY2023 (Rs. 31.72 Cr. in FY2022; Rs. 10.62 Cr. in FY2021). For H1FY24, the profits stood at Rs. 81 Cr. 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 4.39 times as of March 31, 2023, which although improved slightly since FY2022 backed by the recent capital raise of Rs. 115 Cr. in H1FY23. The group has raised equity capital to the tune of Rs. 230 Cr. in Q3FY24 through QIP which is expected to aid the capital buffers. 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 Namra Finance Limited (NFL)

­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.

About Arman Group

­Incorporated in 1992 and promoted by Mr Jayendra Patel, Arman Financial Services Ltd (together with Namra Finance Ltd. 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 Ltd (Namra) on February 14, 2013. In March 2017, AFSL 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. AFSL, on a consolidated basis, operates in 8 states i.e Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttarakhand, Rajasthan, Haryana and Bihar spread across 120 districts through a network of 336 branches with Assets Under Management (AUM) at Rs 1,943 Cr. as on March 31, 2023. AFSL’s equity shares were listed on BSE in 1995. The promoter and promoter group hold 27.31 percent of the equity shareholding in AFSL 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 336 branches spread across 120 districts as on March 31, 2023. The company is promoted by­ Mr. Jayendra Patel, Vice Chairman and Managing Director, who has 25 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. 1,233 Cr. as on March 31, 2022 to Rs. 1,943 Cr. as on March 31, 2023. The AUM grew to Rs. 2,304 Cr. as on Sep-23.  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 336 branches as on March 31, 2023 which has gradually resulted in reduced concentration of AUM in the state of Gujarat (27.58 percent as on March 31, 2023). The company added 44 new branches during FY2023. 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, 2023 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 FY23 as marked by RoAA (on-balance sheet assets) of 5.78 percent (P.Y: 2.95 percent). The group reported a consolidated PAT of Rs. 93.81 Cr. in FY2023 (Rs. 31.72 Cr. in FY2022; Rs. 10.62 Cr. in FY2021). For H1FY24, the profits stood at Rs. 81 Cr.  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, 2023. 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 4.44 percent as on March 31, 2022 as against 4.70 percent as on March 31, 2021 (1.13 percent as on March 31, 2020). However, on account of improved collections and write-offs in FY23, the GNPA as on March 31, 2023 stood at 2.79 percent; further improved to 2.49 percent as on Sep-23 on account of increase in portfolio. The on-time portfolio (AUM basis) as on March 31, 2023 stood at 95.49 percent vis-à-vis 89.74 percent as on March 31, 2022 (95.03 percent as on September 30, 2023). The provisioning on GNPA remained healthy at 90.91 percent as on September 30, 2023. Modest capital structure The group’s net worth stood at Rs. 212.68 Cr. as on March 31, 2022 (Rs. 186.76 Cr. as on March 31, 2021). Due to capital raise of Rs. 115 Cr. in Q2FY23 and internal accruals, the net worth grew to Rs. 365.69 Cr. as on March 31, 2023. (Rs. 469.67 Cr. as on September 30, 2023). The group has raised equity to the tune of Rs. 230 Cr. in Q3FY24 through QIP which is expected to aid the capital buffers going forward. NFL has adequate capitalization level with Capital Adequacy Ratio of 25.68 percent (standalone) as on September 30, 2023 (18.78 percent as on March 31, 2022). The group's consolidated gearing levels stood moderate at 3.96 times as on September 30, 2023. (4.65 times as on March 31, 2022).

ESG Factors Relevant for Rating

­NFL 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. NFL 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. NFL’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

NFL has adequately matched asset liability profile as on September 30, 2023 with a cumulative surplus in all maturity buckets. The group has adequate liquidity buffers by way of sufficient cash and cash equivalents of Rs. ~521 Cr. as on September 30, 2023.

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 FY23 (Actual) FY22 (Actual) Total Assets Rs. Cr. 1665.98 995.34 Total Income* Rs. Cr. 188.21 100.39 PAT Rs. Cr. 67.20 18.45 Net Worth Rs. Cr. 325.62 162.01 Return on Average Assets (RoAA) (%) 5.05 2.17 Return on Average Net Worth (RoNW) (%) 27.56 13.05 Debt/Equity Times 3.97 5.01 Gross NPA (Owned portfolio) (%) 2.80 3.69 Net NPA (Owned portfolio) (%) 0.05 0.58 *Total income equals to Net Interest Income plus other income

Key Financials (Consolidated)

Particulars Unit FY23 (Actual) FY22 (Actual) Total Assets Rs. Cr. 2022.70 1224.79 Total Income* Rs. Cr. 251.65 145.15 PAT Rs. Cr. 93.81 31.72 Net Worth Rs. Cr. 365.69 212.68 Return on Average Assets (RoAA) (%) 5.78 2.95 Return on Average Net Worth (RoNW) (%) 32.44 15.88 Debt/Equity Times 4.39 4.65 Gross NPA (Owned portfolio) (%) 2.79 4.44 Net NPA (Owned portfolio) (%) 0.16 0.78 *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

• 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 Aug 2023 Term Loan Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 40.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.34 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 30.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 0.83 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 85.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 8.12 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.17 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.15 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 11.67 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 18.94 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.52 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.23 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 11.31 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 12.49 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.73 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 17.33 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.73 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 27.48 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.70 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.40 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Proposed Principal Protected Market Linked Debentures Long Term 5.20 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 12.46 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 24.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 10.01 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 9.37 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.36 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 6.80 ACUITE PP-MLD A- | Stable (Reaffirmed) 06 Jul 2023 Term Loan Long Term 16.67 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 12.67 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.85 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 11.87 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.24 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 6.02 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 30.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 0.70 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 22.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 8.18 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 6.80 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 13.13 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.69 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.52 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Proposed Bank Facility Long Term 70.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.40 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 3.14 ACUITE A- | Stable (Reaffirmed) Proposed Principal Protected Market Linked Debentures Long Term 5.20 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.88 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 18.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.34 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 17.49 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.55 ACUITE A- | Stable (Reaffirmed) 19 May 2023 Term Loan Long Term 4.55 ACUITE A- | Stable (Reaffirmed) Principal protected market linked debentures Long Term 6.80 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.69 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 11.87 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.34 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.70 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Assigned) Principal protected market linked debentures Long Term 30.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 18.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.24 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.88 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.67 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 3.14 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.85 ACUITE A- | Stable (Reaffirmed) Proposed Bank Facility Long Term 85.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 13.13 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.52 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 3.40 ACUITE A- | Stable (Reaffirmed) Proposed principal protected market linked debentures Long Term 5.20 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 12.67 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 8.18 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 6.02 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 17.49 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 22.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) 12 Jan 2023 Term Loan Long Term 7.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.34 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 10.91 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Principal Protected Market Linked Debentures Long Term 30.00 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 5.66 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.69 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.39 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 25.00 ACUITE A- | Stable (Reaffirmed) Proposed Principal Protected Market Linked Debentures Long Term 5.20 ACUITE PP-MLD A- | Stable (Reaffirmed) Principal Protected Market Linked Debentures Long Term 6.80 ACUITE PP-MLD A- | Stable (Reaffirmed) Term Loan Long Term 19.17 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 18.10 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 46.45 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 18.14 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.27 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 13.75 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 6.97 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.50 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) 30 Sep 2022 Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 21.96 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 17.58 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.57 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 8.79 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.27 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 12.02 ACUITE A- | Stable (Reaffirmed) Proposed Term Loan Long Term 22.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 19.38 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.27 ACUITE A- | Stable (Reaffirmed) Proposed Principal Protected Market Linked Debentures Long Term 42.00 ACUITE PP-MLD A- | Stable (Assigned) Term Loan Long Term 10.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.94 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 20.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.20 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.36 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 15.00 ACUITE A- | Stable (Reaffirmed) 19 May 2022 Cash Credit Long Term 4.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.27 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 21.96 ACUITE A- | Stable (Assigned) Proposed Bank Facility Long Term 43.56 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 7.45 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 30.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 3.00 ACUITE A- | Stable (Reaffirmed) Proposed Bank Facility Long Term 0.46 ACUITE A- | Stable (Assigned) Term Loan Long Term 7.27 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 16.36 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 10.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 0.63 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 8.79 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 1.94 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 14.20 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.57 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 2.08 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 19.38 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 17.58 ACUITE A- | Stable (Assigned) 08 Nov 2021 Cash Credit Long Term 4.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 3.26 ACUITE A- | Stable (Assigned) Term Loan Long Term 2.08 ACUITE A- | Stable (Assigned) Cash Credit Long Term 1.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 6.64 ACUITE A- | Stable (Assigned) Term Loan Long Term 15.92 ACUITE A- | Stable (Assigned) Proposed Bank Facility Long Term 21.09 ACUITE A- | Stable (Assigned) Term Loan Long Term 4.78 ACUITE A- | Stable (Assigned) Term Loan Long Term 9.84 ACUITE A- | Stable (Assigned) Cash Credit Long Term 0.50 ACUITE A- | Stable (Assigned) Term Loan Long Term 0.62 ACUITE A- | Stable (Assigned) Term Loan Long Term 10.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 20.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 21.19 ACUITE A- | Stable (Assigned) Term Loan Long Term 10.08 ACUITE A- | Stable (Assigned) Term Loan Long Term 9.00 ACUITE A- | 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 Federal Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A- | Stable | Reaffirmed 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 | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A- | Stable | Reaffirmed Not Applicable INE229U07103 Non-Convertible Debentures (NCD) 25 Aug 2023 11.95 25 May 2026 40.00 Simple ACUITE A- | Stable | Reaffirmed Not Applicable INE229U07079 Principal protected market linked debentures 06 Oct 2022 Not avl. / Not appl. 29 Mar 2024 30.00 Complex PP-MLD | ACUITE A- | Stable | Reaffirmed Not Applicable INE229U07087 Principal protected market linked debentures 06 Oct 2022 Not avl. / Not appl. 31 Oct 2024 6.80 Complex PP-MLD | ACUITE A- | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed principal protected market linked debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.20 Complex PP-MLD | ACUITE A- | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 67.65 Simple ACUITE A- | Stable | Reaffirmed Canara Bank Not avl. / Not appl. Term Loan 31 Aug 2023 Not avl. / Not appl. 31 Aug 2026 19.44 Simple ACUITE A- | Stable | Reaffirmed South Indian Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 05 Sep 2026 10.00 Simple ACUITE A- | Stable | Reaffirmed Union Bank of India Not avl. / Not appl. Term Loan 28 Jun 2023 Not avl. / Not appl. 28 Jun 2026 50.00 Simple ACUITE A- | Stable | Reaffirmed Federal Bank Not avl. / Not appl. Term Loan 29 Sep 2022 Not avl. / Not appl. 29 Sep 2025 12.73 Simple ACUITE A- | Stable | Reaffirmed Utkarsh Small Finance Bank Ltd. Not avl. / Not appl. Term Loan 27 Sep 2022 Not avl. / Not appl. 27 Sep 2024 6.24 Simple ACUITE A- | Stable | Reaffirmed DCB Bank Limited Not avl. / Not appl. Term Loan 25 Jul 2022 Not avl. / Not appl. 25 Jul 2024 7.50 Simple ACUITE A- | Stable | Reaffirmed Indian Overseas Bank Not avl. / Not appl. Term Loan 31 Aug 2022 Not avl. / Not appl. 31 Aug 2025 13.33 Simple ACUITE A- | Stable | Reaffirmed SBM Bank (India) Ltd. Not avl. / Not appl. Term Loan 16 Aug 2022 Not avl. / Not appl. 16 Aug 2024 10.00 Simple ACUITE A- | Stable | Reaffirmed Ujjivan Small Finance Bank Not avl. / Not appl. Term Loan 24 Aug 2022 Not avl. / Not appl. 24 Aug 2024 6.67 Simple ACUITE A- | Stable | Reaffirmed UCO Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 10 Feb 2026 15.64 Simple ACUITE A- | Stable | Reaffirmed CSB Bank Limited Not avl. / Not appl. Term Loan 17 Dec 2022 Not avl. / Not appl. 17 Jun 2025 18.00 Simple ACUITE A- | Stable | Reaffirmed Dhanlaxmi Bank Ltd Not avl. / Not appl. Term Loan 15 Oct 2022 Not avl. / Not appl. 15 Oct 2025 3.38 Simple ACUITE A- | Stable | Reaffirmed Jana Small Finance Bank Ltd. Not avl. / Not appl. Term Loan 18 Dec 2022 Not avl. / Not appl. 18 Dec 2025 12.17 Simple ACUITE A- | Stable | Reaffirmed Capital Small Finance Bank Ltd. Not avl. / Not appl. Term Loan 21 Jan 2023 Not avl. / Not appl. 21 Jan 2025 9.86 Simple ACUITE A- | Stable | Reaffirmed Bank of Baroda Not avl. / Not appl. Term Loan 31 May 2023 Not avl. / Not appl. 31 May 2026 12.50 Simple ACUITE A- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 29 Apr 2023 Not avl. / Not appl. 29 Apr 2026 69.52 Simple ACUITE A- | Stable | Reaffirmed Kotak Mahindra Bank Not avl. / Not appl. Term Loan 12 Apr 2023 Not avl. / Not appl. 12 Jul 2025 0.10 Simple ACUITE A- | Stable | Reaffirmed IDFC First Bank Limited Not avl. / Not appl. Term Loan 07 Jun 2023 Not avl. / Not appl. 07 Sep 2025 22.50 Simple ACUITE A- | Stable | Reaffirmed IDFC First Bank Limited Not avl. / Not appl. Term Loan 31 Mar 2021 Not avl. / Not appl. 31 Mar 2024 0.03 Simple ACUITE A- | Stable | Reaffirmed Federal Bank Not avl. / Not appl. Term Loan 31 Mar 2021 Not avl. / Not appl. 31 Mar 2024 0.91 Simple ACUITE A- | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 26 Mar 2020 Not avl. / Not appl. 26 Mar 2022 0.63 Simple ACUITE A- | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 26 Dec 2019 Not avl. / Not appl. 26 Mar 2022 2.08 Simple ACUITE A- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 04 Nov 2019 Not avl. / Not appl. 04 Feb 2022 0.07 Simple ACUITE A- | Stable | Reaffirmed Union Bank of India Not avl. / Not appl. Term Loan 10 Sep 2021 Not avl. / Not appl. 10 Sep 2024 2.42 Simple ACUITE A- | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 20 Feb 2020 Not avl. / Not appl. 20 Feb 2023 0.70 Simple ACUITE A- | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Term Loan 30 Sep 2021 Not avl. / Not appl. 30 Sep 2023 2.73 Simple ACUITE A- | Stable | Reaffirmed IDBI Bank Ltd. Not avl. / Not appl. Term Loan 30 Sep 2021 Not avl. / Not appl. 30 Sep 2024 6.88 Simple ACUITE A- | Stable | Reaffirmed Small Industries Development Bank of India Not avl. / Not appl. Term Loan 27 Sep 2021 Not avl. / Not appl. 27 Sep 2023 2.00 Simple ACUITE A- | Stable | Reaffirmed Canara Bank Not avl. / Not appl. Term Loan 23 Sep 2021 Not avl. / Not appl. 23 Sep 2024 6.76 Simple ACUITE A- | Stable | Reaffirmed Bank of India Not avl. / Not appl. Term Loan 01 Sep 2021 Not avl. / Not appl. 01 Jun 2024 5.45 Simple ACUITE A- | Stable | Reaffirmed Small Industries Development Bank of India Not avl. / Not appl. Term Loan 27 Sep 2021 Not avl. / Not appl. 27 Sep 2024 10.00 Simple ACUITE A- | Stable | Reaffirmed Kotak Mahindra Bank Not avl. / Not appl. Term Loan 30 Apr 2022 Not avl. / Not appl. 30 Jul 2024 4.37 Simple ACUITE A- | Stable | Reaffirmed IDFC First Bank Limited Not avl. / Not appl. Term Loan 20 May 2022 Not avl. / Not appl. 20 Aug 2024 4.24 Simple ACUITE A- | Stable | Reaffirmed Karnataka Bank Ltd Not avl. / Not appl. Term Loan 30 Sep 2023 Not avl. / Not appl. 30 Sep 2026 15.00 Simple ACUITE A- | Stable | Assigned

­

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

Sr. No. Company Name Relationship 1 Arman Financial Services Limited Parent 2 Namra Finance Limited Subsidiary

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Yash Bhalotia Senior Analyst - Rating Operations Tel: 022-49294065 yash.bhalotia@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.