Press Release March 12, 2025 VEDIKA CREDIT CAPITAL LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	22.90	ACUITE BB+ | Downgraded | Issuer not co-operating*	-
Total Outstanding	22.90	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has downgraded its long-term rating to 'ACUITE BB+' (read as ACUITE double B plus) from 'ACUITE BBB+' (read as ACUITE triple B plus)  on the  Rs. 22.90 crore Non Convertible Debentures of Vedika Credit Capital Limited (VCCL). The rating is now flagged as “Issuer Not-Cooperating” and is based on the best available information. The downgrade is on account of information risk

About the Company

­Jharkhand based VCCL, is a Non-Banking Finance Company (NBFC) Micro Finance Institution (MFI) primarily engaged in extending Micro loans to women borrowers under the Joint Liability Group Model since 2007. The company has presence in 7 states, primarily in eastern India through a network of 192 branches as on December 31, 2023. The company was originally  incorporated in 1995 by a different set of owners and subsequently, the company was taken over in 2004 by the present promoters, Mr. Ummed Jain (Chairman) and his sons, Mr. Gautam Jain and Mr. Vikram Jain. Mr. Gautam Jain (Managing Director) and Mr. Vikram Jain (Whole time Director) was initially engaged in traditional financing and gradually instrumented his aim to transform his lending operations into a recognized and regulated NBFC-MFI - VCCL. The promoters are engaged in two wheeler financing through Vedika Fincorp Limited, a group company of VCCL.

Unsupported Rating

­Not Applicable

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 non-cooperation 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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

ESG Factors Relevant for Rating

­Vedika Credit Capital Limited (VCCL) 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. In terms of its business ethics, performance, the entity has maintained adequate disclosure regarding its Grievance Redressal, related party compliance and fair practice code. The board of directors of the company comprise of 2 independent directors out of a total of 6 directors with no female director. The entity has an audit committee, nomination and renumeration committee and corporate social responsibility committee. As per Reserve Bank of India (RBI) guidelines, the NBFC has an IT policy to oversee its cybersecurity. VCCL has also maintained disclosures regarding renumeration of its directors and key managerial personnel (KMP). VCCL aims to empower entrepreneurs that have limited access to the banking sector in India, hence making an economic contribution by way of financial inclusion. It continues to work on several community development initiatives through its corporate social responsibility projects.

Rating Sensitivities

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

All Covenants

Financial Convenants not available

Liquidity Position

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

Outlook: Not Applicable

­

Other Factors affecting Rating

­None

Key Financials:

­ Particulars Unit FY24 (Actual) FY23 (Actual) Total Assets Rs. Cr. 1174.84 916.64 Total Income* Rs. Cr. 111.57 81.07 PAT Rs. Cr. 27.86 17.01 Net Worth Rs. Cr. 205.30 157.26 Return on Average Assets (RoAA) (%) 2.66 2.03 Return on Average Net Worth (RoNW) (%) 15.37 12.99 Total Debt/Tangible Net worth (Gearing) Times 4.59 4.68 Gross NPA (%) NA 0.89 Net NPA (%) NA 0 * Total income equals to Net interest income plus other income

Status of non-cooperation with previous CRA

­Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Although Acuite requested an interaction with the Audit Committee the issuer entity was unable to arrange it.

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 19 Mar 2024 Non-Covertible Debentures (NCD) Long Term 22.90 ACUITE BBB+ | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 7.10 ACUITE Not Applicable (Withdrawn) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE Not Applicable (Withdrawn) 20 Mar 2023 Term Loan Long Term 38.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 62.85 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 13.67 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 5.37 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 5.84 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 0.64 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 2.22 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 8.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 15.66 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 2.92 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 36.58 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 0.11 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 0.47 ACUITE BBB+ (Reaffirmed & Withdrawn) Proposed Long Term Bank Facility Long Term 182.84 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 11.84 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 17.50 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 6.39 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 15.33 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 11.72 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 20.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 15.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 3.54 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 9.53 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 9.17 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 10.14 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 51.91 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 22.81 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 5.72 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 11.78 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 17.48 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 13.75 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 14.38 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 20.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 48.00 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 21.71 ACUITE BBB+ (Reaffirmed & Withdrawn) Term Loan Long Term 17.13 ACUITE BBB+ (Reaffirmed & Withdrawn) Proposed Non Convertible Debentures Long Term 30.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) 02 Jan 2023 Proposed Non Convertible Debentures Long Term 30.00 ACUITE BBB+ | Stable (Reaffirmed) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 5.37 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 5.84 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 0.64 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 2.22 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 8.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 15.66 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 2.92 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 36.58 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 0.11 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 0.47 ACUITE BBB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 182.84 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 11.84 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 17.50 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 6.39 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 15.33 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 11.72 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 3.54 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 9.53 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 9.17 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 10.14 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 51.91 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 22.81 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 5.72 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 11.78 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 17.48 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 13.75 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 14.38 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 48.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 38.00 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 62.85 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 13.67 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 21.71 ACUITE BBB+ | Stable (Reaffirmed) Term Loan Long Term 17.13 ACUITE BBB+ | Stable (Reaffirmed) 03 Jan 2022 Proposed Commercial Paper Program Short Term 30.00 ACUITE A2 (Upgraded & Withdrawn from ACUITE A3+) Proposed Non Convertible Debentures Short Term 50.00 ACUITE A2 (Upgraded & Withdrawn from ACUITE A3+) Term Loan Long Term 25.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 29.17 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Special Liquidity Scheme Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Proposed Long Term Loan Long Term 75.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 60.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 50.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 30.00 ACUITE BBB+ | Stable (Assigned) Proposed Non Convertible Debentures Long Term 50.00 ACUITE BBB+ (Upgraded & Withdrawn from ACUITE BBB | Stable) Term Loan Long Term 25.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 100.00 ACUITE BBB+ | Stable (Assigned) Proposed Long Term Bank Facility Long Term 54.85 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 6.67 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 5.65 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 2.68 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 1.79 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 69.03 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 3.85 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 5.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 5.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 25.01 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 1.46 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 14.12 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 4.17 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 1.76 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 19.77 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 9.62 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Special Liquidity Scheme Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 13.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Term Loan Long Term 2.40 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Non-Covertible Debentures (NCD) Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Proposed Non Convertible Debentures Long Term 30.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)

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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 INE04HY07021 Non-Convertible Debentures (NCD) 08 Apr 2022 11.42 08 Dec 2025 22.90 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Nattasha Venkatesh 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.