|
CRISIL has assigned its ‘BB/Stable' rating to the bank facilities of Arman Financial Services Ltd (AFSL). The rating reflects AFSL’s small scale of operations with regional concentration, average capitalisation, and modest resource and earnings profiles. These rating weaknesses are partially offset by the company’s moderate asset quality.
Outlook: Stable
CRISIL believes that AFSL’s asset quality would remain moderate over the medium term on the back of its conservative lending policy and effective recovery mechanism. The outlook may be revised to ‘Positive’ if AFSL reports a substantial improvement in its capitalisation or earnings profile, while maintaining its asset quality. Conversely, the outlook may be revised to ‘Negative’ if there is significant deterioration in the company’s asset quality and profitability, leading to stress on its capitalisation, or in case it diversifies into unrelated businesses.
About the Company
AFSL was originally incorporated as a private limited company, Arman Lease & Finance Private Ltd., (ALFPL) on November 26, 1992, with its registered office in Ahmedabad. In December 1993, ALFPL was reconstituted as a public limited company under the name of Arman Lease and Finance Ltd, and in August 1995 it came out with its public issue; the company’s name was changed to the present one in 2008. AFSL is a deposit-taking non-banking financial company, but does not mobilise public deposits. Mr. Jayendra Patel (Vice-Chairman and Managing Director) and Mr. Amit Manakiwala (Director) are the promoters of the company. Presently, AFSL offers finance for purchase of two-wheelers and three-wheelers, and personal loans (micro loans) and microfinance.
For 2008-09 (refers to financial year, April 1 to March 31), AFSL reported a profit after tax (PAT) of Rs.6.9 million on a total income of Rs.44 million, against a PAT of Rs.7.1 million on a total income of Rs.38.9 million for the previous year. For the nine months ended December 31, 2009, the company’s net profit was Rs.7.1 million on a total income of Rs.37.9 million.
|
 |
|
Media Contact
|
Analytical Contacts
|
CRISIL Rating Desk
|
Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1838
Email: msamar@crisil.com
Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22-3342 1818
Email: tabhinandan@crisil.com
|
Pawan Agrawal
Director - CRISIL Ratings
Tel: +91-22-3342 3301
Email: pagrawal@crisil.com
Suman Chowdhury
Head - CRISIL Ratings
Tel: +91-22-3342 3293
Email: schowdhury@crisil.com
|
Tel: +91-22-3342 3047 / 3342 3064
Email: CRISILratingdesk@crisil.com
|
|
Note:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc.
|
CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in. Investors can also call the CRISIL Helpline at +91 22 3342 3047 / + 91 22 3342 3064 with queries on specific instruments.
|
|
CRISIL is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy. For more information, visit www.crisil.com.
Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings’ rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.
|
|
