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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Pass Through Certificates (PTCs) | 5.93 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 5.93 | - | - |
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Rating Rationale |
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Acuité has withdrawn the long term rating on the Pass Through Certificates (PTCs) of Rs. 5.93 Cr. issued by ARITRA GROWTH 3 under a securitisation transaction originated by VEDIKA CREDIT CAPITAL LIMITED (The Originator). The PTCs are backed by a pool of microfinance with principal outstanding of Rs. 6.78 Cr (including Rs. 0.85 Cr of over collateralisation).
The transaction has been paid in full. It has also been redeemed and all the contractual obligations and pay-outs to the investors have been duly completed. Hence, the rating is being withdrawn. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating and pursuant to a request received from the company in this regard, and the NOC received from the trustee. |
| About the Originator |
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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 November 30, 2022. 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) 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.
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| Assessment of the Pool |
| Not applicable |
| Credit Enhancements (CE) |
| Not applicable |
| Transaction Structure |
| Not applicable |
| Assessment of Adequacy of Credit Enhancement |
| Not applicable |
| Legal Assessment |
| Not applicable |
| Key Risks |
| Counter Party Risks |
| Not applicable |
| Concentration Risks |
| Not applicable |
| Servicing Risks |
| Not applicable |
| Regulatory Risks |
| Not applicable |
| Prepayment Risks |
| Not applicable |
| Commingling Risk |
| Not applicable |
| Rating Sensitivity |
| Not applicable |
| All Covenants |
| Not applicable |
| Liquidity Position |
| Not applicable |
| Outlook: |
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Not Applicable Other Factors Affecting the Rating None |
| Key Financials - Originator | ||||||||||||||||||||||||||||||||||||||||
*Total income equals to Net Interest Income plus other income
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| Any Other Information |
| None |
| Status of disclosure of all relevant information about the Obligation being Rated |
| Not applicable |
| Note on Complexity Levels of the Rated Instrument |
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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.
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| Applicable Criteria |
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• 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 • Securitized Transactions: https://www.acuite.in/view-rating-criteria-48.htm |
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