May 17, 2013

Mumbai

Arman Financial Services Limited

Rating Suspended

Total Bank Loan Facilities Rated	Rs.350 Million
Long-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its rating on the bank facilities of Arman Financial Services Limited (Arman). The suspension of ratings is on account of non-cooperation by Arman with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Arman is yet to provide adequate information to enable CRISIL to assess Arman’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and views non-sharing of information as a first signal of possible credit distress, as outlined in its criteria “Information availability risk in Credit ratings".

About the Company

Arman was incorporated as a private limited company, Arman Lease & Finance Pvt Ltd (ALFPL), in November 1992, with its registered office in Ahmedabad (Gujarat). 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 current one in 2008. AFSL is a deposit-taking non-banking financial company, but does not mobilise public deposits. Arman’s promoters are Mr. Jayendra Patel and family (owns 30.4 per cent of Arman’s equity shares) and Mr. Amit Manakiwala and family (5.2 per cent). Arman offers finance for purchase of two-wheelers and three-wheelers, and personal loans (micro loans) and microfinance services.

Annexure 1 - Details of various Bank Facilities

Current Facilities			Previous Facilities
Facility	Amount(Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	235	Suspended	Cash Credit Facility	235	CRISIL BB/Stable
Long-Term Bank Facility	40	Suspended	Long-Term Bank Facility	40	CRISIL BB/Stable
Proposed Long-Term Bank Loan Facility	75	Suspended	Proposed Long-Term Bank Loan Facility	75	CRISIL BB/Stable
Total	350	--	Total	350	--

Media Contacts	Analytical Contacts	Customer Service Helpdesk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22-3342 1818 Email: tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com	Pawan Agrawal Senior Director - CRISIL Ratings Tel: +91-22-3342 3301 Email: pawan.agrawal@crisil.com Rupali Shanker Director -CRISIL Ratings Tel: +91-22-3342 1952 E-mail: rupali.shanker@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 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 desire to invest in. Investors may also call the Customer Service Helpdesk with queries on specific instruments.

About CRISIL LIMITED
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Ratings
CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 50,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.

CRISIL PRIVACY NOTICE
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfill your request and service your account and to provide you with additional information from CRISIL and other parts of The McGraw-Hill Companies, Inc. you may find of interest.
For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view McGraw-Hill's Customer Privacy Policy at http://www.mcgraw-hill.com/site/tools/privacy/privacy_english.
Last updated: April 30, 2012

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 available without charge to the public on the CRISIL 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.


May 17, 2013	http://www.crisil.com