IFMR Capital Finance Private Limited

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1 IFMR Finance Private Limited ICRA has upgraded/reaffirmed the ratings of PTCs (Pass Through Certificates) in case of 4 transactions backed by Multi-Originator micro loan pools. The rating upgrade reflects the good collection performance on the underlying pools so far, and enhanced credit enhancement cover for the rated instruments over the shorter residual tenure. The summary of the rating actions taken by ICRA is given below. Table 1: Summary of rating actions S. No. Transactio n Name 1 IFMR Zephyrus Originators Instrument Outstanding Rating AMPL Fusion GFSPL MPower Pahal Satin Suryoday Svasti [ICRA]BBB [ICRA]C+ Initial Amt (Rs. Cr) O/s Rating Action after Dec-15 Payout (Rs. Cr) Revised from [ICRA]BBB(S O) to [ICRA]A+(SO ) Revised from [ICRA]C+(SO ) to [ICRA]BB- 2 IFMR Aragorn 3 IFMR Boreas 4 IFMR Aethon Intrepid Light Saija Asirvad Chaitanya FFSL Saija Sonata SVCL Svasti Varam AMPL FFSL Intrepid Saija A3 [ICRA]BBB [ICRA]C+ [ICRA]A- [ICRA]BBB - [ICRA]C+( SO) [ICRA]BBB( SO) Reaffirmed at [ICRA]BBB(S O) Reaffirmed at [ICRA]C+(SO ) Revised from [ICRA]A- to [ICRA]AA Revised from [ICRA]BBB- to [ICRA]A Revised from [ICRA]C+(SO ) to [ICRA]B Revised from [ICRA]BBB(S O) to [ICRA]A+(SO ) For complete rating scale and definitions please refer to ICRA's Website or other ICRA Rating Publications

2 Sonata SVCL [ICRA]B Revised from [ICRA]B- to [ICRA]BB(S O) The selected pools underlying these transactions comprised of unsecured micro loans, with moderate initial tenure of contracts (24 months), high initial seasoning and no overdue. Moreover, the pools comprised of Group Loans * only. The instruments in the above-mentioned transactions are backed by pools of micro loan receivables originated by multiple originators; the originators in case of each of these transactions are as shown in table 1 above. Table 2: Performance Summary Zephyrus Aragorn Aethon Boreas No of payouts post securitization Amortization of pool 77.67% 87.62% 71.90% 70.93% PTC Amortization 84.99% 89.07% 86.20% 85.62% Cumulative Collection Efficiency % 96.97% % % 0+ delinquency ratio 0.00% 0.00% 0.00% 0.00% Cumulative prepayment rate 0.00% 0.00% 0.00% 0.00% Cumulative Cash Collateral Utilization 0.00% 0.00% 0.00% 0.00% Cumulative Credit Enh. Utilization 0.00% 13.75% 0.00% 0.00% While the collections of all pools have been about 100%, that for Aragorn it has been about 97%. This is because of some delays in receiving collections from in all the pools. The share of in the balance pool of Aragorn is very high at 72% and hence the impact of delayed collections from the company is highest in this transaction. Nevertheless, despite the delay, subsequently collections have come from and owing to the strong performance of pools of all other issuers, there is negligible delinquencies in the pools. On account of this no cash collateral has been utilized till date. In our view, the credit enhancement available in all the transactions is sufficient to support the revised rating level of the PTCs. ICRA will continue to monitor the performance of these transactions. Any further rating action on these pools will be based on the performance of the pools, the availability of credit enhancement and the credit profile of the Servicers. About the Originators Annapurna Microfinance Private Limited (AMPL) Annapurna Microfinance Private Limited (AMPL) was started as Mission Annapurna by People s Forum (the parent organization) to carry out the microfinance activities of People s Forum. Mission Annapurna was subsequently converted to an NBFC (AMPL) in Financial Year (FY) after acquisition of a Gwalior based Microfinance Company. As on August, AMPL had operations in 153 branches across 7 states and a total portfolio of Rs. 536 crore. As of September, 0+ delinquency for overall the portfolio of AMPL was 0.10%. The company has a rating of [ICRA]BBB(stable) outstanding from ICRA for its long term debt instruments. * Group Loans are given to borrowers who are organised in groups of 5-10 members, where each group member is responsible for repayment by the other group members. Unbilled Principal portion of Delinquent contracts, as a % of Initial Pool Principal Principal outstanding at the time of prepayment of contracts prepaid till date divided by initial pool principal Includes utilisation of cash collateral and subordinated cashflows

3 Asirvad Microfinance Private Limited (Asirvad) Asirvad Microfinance Private Limited (Asirvad) is a Tamil Nadu based MFI that was set up as an NBFC in December 2007 and started operations in January It was promoted by Mr. S.V. Raja Vaidyanathan with the aim of replicating a similar model as that of the Grameen Bank of Bangladesh in the villages of Tamil Nadu. In February, Manappuram Finance Limited (MFL) acquired 71.14% stake in the company by acquiring shares from the existing shareholders. MFL further infused about Rs.63 crore into the company and increased its stake to 84.98% presently. As on September, Asirvad was present in 58 districts in 11 states with a portfolio size of Rs. 538 crore. As on September, the 0+ delinquency level for the overall portfolio of Asirvad was 1.24%. Asirvad has a rating of [ICRA]A-(stable) outstanding from ICRA for its long term debt instruments and has been assigned a microfinance grading of M2+ by ICRA. Chaitanya India Fin Credit Private Limited (Chaitanya) Chaitanya(rated [ICRA]BB+(Stable) for its long term debt instruments) was started by Mr. Anand Rao as an NGO is 2004 in Bangalore and has a portfolio of Rs crore across 18 districts in Karnataka as on September. As on September, the 0+ delinquency level for the overall portfolio of Chaitanya was 0.04%. Future Financial Services Private Limited (FFSPL) Future Financial Services Pvt Ltd (FFSPL) (rated [ICRA]BBB(stable)/[ICRA]BBB+(stable) for its various debt programmes and assigned Microfinance grading of M2+ by ICRA) is an NBFC involved in microfinance activities, with presence in the seven states. As on September, FFSPL was present in 226 branches spread over 55 districts in these states with a portfolio size of Rs. 628 crore, of which 2.9% is in the state of AP, where it has discontinued the operations. As on September, the 0+ dpd for the company is 1.18%, while the same for company s non-ap portfolio stands at about 1.21%. Fusion Microfinance Private Limited (Fusion) Fusion started its operations in January 2010 in Northern India and further augmented it in April 2010 by acquiring the microfinance division of Aajeevika, a not for profit body operational in Delhi. As on September, Fusion had operations in 115 branches across 7 states and a total portfolio of Rs. 409 crore. As of September, 0+ delinquency for overall the portfolio of Fusion was 0.54%. The company has a rating of [ICRA]BBB(stable) outstanding from ICRA for its long term debt instruments. Grameen Financial Services Private Limited (GFSPL) GFSPL (rated [ICRA]A- for its bank lines) is a Bangalore-based MFI-NGO turned NBFC-MFI, catering to the needs of poor women in Karnataka,Maharashtra and Tamil Nadu. Grameen Koota (a unit of GFSPL) was started by the T. Muniswammapa Trust as a project in 1996, with the aim of replicating a similar program as that of the Grameen Bank, Bangladesh in the villages of Karnataka. It started its operations in 1999 with the help of seed capital funding of US $35,000 from Grameen Trust, Bangladesh. In 2007, Grameen Koota was transformed from an NGO- MFI to an NBFC through its acquisition of Sanni Collection Pvt. Ltd., a Kolkata based NBFC. The name given to this NBFC was Grameen Financial Services Pvt. Ltd (GFSPL) and GFSPL started business in October GFSPL is currently concentrated in the state of Karnataka, Maharashtra and Tamil Nadu, with a portfolio size of Rs Crore as on December Intrepid Finance & Leasing Private Limited (FINO) Intrepid Leasing and Finance Private Limited is a Microfinance institution and a Non-deposit accepting NBFC registered with Reserve Bank of India. ILFPL was acquired by FINO PayTech (FINO) in 2010 to originate microfinance loans on the books of the NBFC. Intrepid is currently operational in the states of Maharashtra, Uttar Pradesh, Madhya Pradesh, Bihar and Karnataka, with a portfolio size of Rs. 138 crore as on September. As on September, the 0+ delinquency level for the overall portfolio of Intrepid was 1.49%. Light Microfinance Private Limited (Light) Light Microfinance was started as a private limited company in January 2009 and in August 2009 received its license from RBI to operate as a Non-Banking Finance Company (NBFC). A typical customer of Light Microfinance is a rural woman usually engaged in daily wage activities or

4 microenterprise. As of September, Light had a portfolio of Rs crore, which was spread across 15 districts of Gujarat. The portfolio of Light is primarily concentrated in the state of Gujarat, and has recently started operations in Rajasthan. As on September, the 0+ delinquency level for the overall portfolio of Light was 0.74%. MPower Microfinance Private Limited (MPower) MPower Microfinance Private Limited (MPower) was incorporated in Nov-09 and received its NBFC license in Apr-10. The company started its operation in May-10 with its registered office in Mumbai and corporate office in Vadodara. As on June, MPower had a portfolio of Rs. 76 crore concentrated in 10 districts of 3 states. As on June, the 0+ delinquency level for overall the portfolio of MPower was very low at 0.27%. Pahal Financial Services Private Limited (Pahal) Pahal Financial Services Private Limited (Pahal) started its operations in February 2011 after the present promoters of the company acquired Kelkar Leasing Company Pvt. Ltd., a NBFC which was idle since its formation in As of September, Pahal had a portfolio of Rs. 91 crore. Pahal is operational in 44 branches spread over 18 districts in the state of Gujarat and Madhya Pradesh. As on September, the 0+ delinquency level for the overall portfolio of Pahal was 0.83%. Microfinance Limited () Microfinance Limited () is a Madhya Pradesh based MFI that aims to provide access to financial services to such people, especially women, who are underserved by the formal financial agencies. The company is headquartered in Bhopal and as on March, has 71 branches and a portfolio of Rs. 80 crore, which is majorly concentrated in Madhya Pradesh with a small share in Maharashtra, Gujarat and Chattisgarh. 30+ dpd levels for are low at around 0.64% as on March. Saija Finance Private Limited (Saija) Saija Finance Private Limited was formed in April 2008 and was granted the NBFC-MFI license in December 2013 by RBI. As of June, Saija had a portfolio of Rs. 146 crore. The portfolio of Saija is primarily concentrated in the state of Bihar. Though Saija has exposure to the state of Jharkhand, their portfolio is small in this state. As on June, the 0+ delinquency level for the overall portfolio of Saija was 0.38%.ICRA has a rating outstanding of [ICRA]BBB-(stable) on the long term debt of the company and has assigned a grading of M2. Satin Creditcare Network Limited (Satin) Satin Creditcare Network Limited (Satin) (rated [ICRA]BBB+(Stable)) was set up in 1990 to provide individual loans to urban shopkeepers for purchase of generators for their businesses. It was registered with RBI as a deposit taking Non-Banking Finance Company (NBFC) under the name Satin Leasing and Finance Company Limited. At present, it caters to both the urban and rural poor throughout Delhi, Uttar Pradesh (UP), Punjab, Chandigarh, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Bihar, Jammu & Kashmir, Uttarakhand, Chhastisgarh and Jharkhand and provides loans only for income generating purposes. As on September, Satin served lakh clients and had operations in 329 branches across 13 states of India. The total portfolio as on September was about 2,156 crore with majority of the portfolio comprising of Group loans and the remaining as Individual loans. Sonata Microfinance Private Limited (Sonata) Sonata has a rating of [ICRA]BBB(stable) outstanding from ICRA for its long term debt instruments and has been assigned a microfinance grading of M2+ by ICRA. As on September, Sonata was present in 79 districts in the state of Uttar Pradesh, Madhya Pradesh, Uttarakhand, Rajasthan, Haryana and Bihar with a portfolio size of Rs. 776 crore. As on September, the 0+ delinquency level for the overall portfolio of Sonata was 0.87%. Suryoday Micro Finance Private Limited (Suryoday) Suryoday was set up in October 2008 as an NBFC, but commenced its full-fledged operations from May As on June, Suryoday had operations in 161 branches across 7 states. Of the total

5 portfolio of Rs. 562 crore as on Jun-15, about 40% is in the state of Maharashtra while the rest is spread across Tamilnadu, Odisha, Karnataka, Gujarat, Madhya Pradesh, and Rajasthan. The company has completely exited Andhra Pradesh. As of June, 0+ delinquency for overall the portfolio of Suryoday was 0.26%. The company has a rating of [ICRA]BBB(stable) and [ICRA]A3+(stable) outstanding from ICRA for its long term and short term debt instruments respectively. SV Credit Line Private Limited (SVCL) SVCL started its operations in 2010 and was established by the acquisition of an existing NBFC - Mantrana Finlease Limited, which was engaged in financing of Commercial Vehicles. Subsequent to that, the company was acquired in September 2008 and renamed as SV Creditline Private Limited (SVCL). The company is engaged in microfinance operations in the states of Madhya Pradesh, Uttar Pradesh, Rajasthan, Uttarakhand, Rajasthan, Haryana and Bihar, with a total portfolio of Rs. 442 crore across 70 districts through a network of 123 branches as on June. As on June, the 0+ delinquency level for overall the portfolio of SVCL was low at 0.36%. ICRA has a rating outstanding of [ICRA]BBB-(Stable) on the long term debt instruments and [ICRA]A3 on the preference shares of the company. Svasti Microfinance Pvt Ltd (Svasti) Svasti Microfinance Pvt Ltd (Svasti) is a Mumbai based MFI that aims to provide comprehensive financial services to the low income segments of society in Mumbai. The company is headquartered in Mumbai and as on September, Svasti has operations out of 13 branches and a portfolio of Rs crore. The company has exhibited strong asset quality since inception with the 0+ dpd levels for Svasti being negligible at 0.11% as on September. Varam Private Limited (Varam) Varam Private Limited (formerly Karpaga Ganapathi Investments Private Limited) was hence acquired in 2011 and started its operation since September Varam achieved the status of NBFC-MFI status in December As on March, Varam had operations in five districts in the state of Tamil Nadu and 1 district of Chhattisgarh with a portfolio size of Rs 56 crore. Varam had nil delinquency levels as on March. For further details please contact: Analyst Contacts: Mr. Kalpesh Gada (Tel. No ) Head- Structured Finance kalpesh@icraindia.com January 2016 Relationship Contacts: Mr. Jayanta Chatterjee (Tel. No ) jayantac@icraindia.com Copyright, 2016, ICRA Limited. All Rights Reserved. Contents may be used freely with due acknowledgement to ICRA ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided as is without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.

6 Registered Office ICRA Limited 1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi Tel: , Fax: Corporate Office Mr. Vivek Mathur Mobile: Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon Ph: (D), / (B) Fax; Mumbai Mr. L. Shivakumar Mobile: shivakumar@icraindia.com 1802, 18th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone, Mumbai , Board : ; Fax: Chennai Mr. Jayanta Chatterjee Mobile: jayantac@icraindia.com 5th Floor, Karumuttu Centre 634 Anna Salai, Nandanam Chennai Tel: ; Fax: Ahmedabad Mr. L. Shivakumar Mobile: shivakumar@icraindia.com 907 & 908 Sakar -II, Ellisbridge, Ahmedabad Tel: , , ; Fax: Hyderabad Mr. Jayanta Chatterjee Mobile: jayantac@icraindia.com Kolkata Mr. Jayanta Roy Mobile: jayanta@icraindia.com A-10 & 11, 3rd Floor, FMC Fortuna 234/3A, A.J.C. Bose Road Kolkata Tel / / , Fax Bangalore Bangalore Mr. Jayanta Chatterjee Mobile: jayantac@icraindia.com 'The Millenia' Tower B, Unit No. 1004,10th Floor, Level , 1 & 2, Murphy Road, Bangalore Tel: ; Fax: Pune Mr. L. Shivakumar Mobile: shivakumar@icraindia.com 5A, 5th Floor, Symphony, S.No. 99, CTS 3909, Range Hills Road, Shivajinagar,Pune Tel: ; Fax: th Floor, Shobhan, /A&B. Somajiguda, Raj Bhavan Road, Hyderabad Tel: