Rating Rationale
August 14, 2020 | Mumbai
Manappuram Finance Limited
'CRISIL AA/CRISIL PP-MLD AAr/Stable' assigned to debt instruments
 
Rating Action
Total Bank Loan Facilities Rated Rs.5000 Crore
Long Term Rating CRISIL AA/Stable (Reaffirmed)
Short Term Rating CRISIL A1+ (Reaffirmed)
 
Rs.300 Crore Non Convertible Debentures CRISIL AA/Stable (Assigned)
Rs.250 Crore Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAr/Stable (Assigned)
Rs.700 Crore Non Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Rs.500 Crore Non Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Rs.200 Crore Non Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Rs.350 Crore Non Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Non Convertible Debentures Aggregating Rs.1165.05 Crore CRISIL AA/Stable (Reaffirmed)
Rs.250 Crore Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAr/Stable (Reaffirmed)
Rs.4000 Crore Commercial Paper CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has assigned its 'CRISIL AA/Stable' to Rs 300 crore non-convertible debentures and 'CRISIL PP-MLD AAr/Stable' rating to Rs 250 crore long term principal protected market linked debentures of Manappuram Finance Limited (MAFIL; part of the Manappuram group). CRISIL has also reaffirmed its ratings on the bank facilities and other debt instruments at 'CRISIL AA/CRISIL PP-MLD AAr/Stable/CRISIL A1+'.
 
The ratings continue to factor in MAFIL's healthy asset quality, steady gold loan business and diversity in other asset classes, and strong profitability and return on assets. MAFIL has maintained healthy asset quality over the years, as reflected in quarter-end gross non-performing assets (GNPAs) of 0.5-1% for the gold loan portfolio over the past eight quarters, backed by strong collection efficiency. MAFIL has maintained steady asset quality at the consolidated level while diversifying its business into other asset classes. At the consolidated level, the GNPAs were 1.19% as on March 31, 2020 and 1.25% for the quarter ended June 30, 2020.
 
The non-gold loan portfolio (microfinance, vehicle finance and housing finance) accounted for around 30% of the total portfolio as on June 30, 2020 (33% as on March 31, 2020), against 19% as on March 31, 2017. Furthermore, all these businesses were profitable in fiscal 2020. The overall profitability has remained strong with consolidated return on managed assets (RoMA) of 5.6% during fiscal 2020.
 
While a larger proportion of borrowing comprised funding lines from banks and financial institutions (55%), the company's resource profile was diversified across avenues such as NCDs and subordinated debt (22%), commercial paper (CP; 9%), and external commercial borrowing (ECBs; 14%) as on June 30, 2020.
 
In the non-gold finance portfolio, the microfinance business accounted for Rs 5,038 crore as on June 30, 2020. The other two segments, vehicle finance and housing finance, had assets under management (AUM) of Rs 1,270 crore and Rs 627 crore as on June 30, 2020, respectively. The continuous broad basing of non-gold asset classes beginning 2015 has reduced the risk of monoline business and associated growth challenges.
 
The ratings continue to reflect the company's established market position in the gold finance business, which accounts for around 70% of the loan portfolio. The ratings also factor in sound capitalisation, reflected in consolidated networth of Rs 6,037 crore and low gearing of 4.0 times as on June 30, 2020. Profitability remains strong driven by high gross spreads and low credit cost, while the funding profile is expected to remain stable. These strengths are partially offset by high operating cost in the gold and microfinance businesses, geographical concentration of operations and the associated risks, and potential challenges associated with the non-gold product segments.
 
The on-going nationwide lockdown to contain the spread of Covid-19 will have a near-term impact on disbursements and collections of non-banking financial companies (NBFCs). The lifting of restrictions is likely to be phased. Any delay in return to normalcy will put further pressure on collections and asset quality. Additionally, any change in the payment discipline of borrowers can affect delinquency levels. However, for MAFIL, around 70% of the consolidated loan book is in the gold segment. Moreover, within the gold segment, the portfolio loan to value (LTV) is comfortable due to the sharp increase in gold prices. Hence, timely auction will ensure that credit losses are negligible even if the company faces delinquencies. For the balance 30% of the portfolio, asset quality risks are likely to manifest, especially in the microfinance segment.
 
On the liability side, the Reserve Bank of India (RBI) announced regulatory measures under the Covid-19 - Regulatory Package, whereby lenders were permitted to grant moratorium on bank loans which has been further extended by three months till August 31, 2020. However, MAFIL has not availed the moratorium from any of its lenders.
 
In terms of liquidity, the company's liquidity position remains strong with liquid balance of Rs 4,509 crore as on July 31, 2020 (including cash and liquid investments of Rs 2,785 crore and unutilized CC/WCDL limit of Rs  1724 crore). Liquidity cover for debt obligations arising over  August and September 2020, without factoring in any roll over or incremental collections stands at 1.3 times. However, the company has been able to roll over/ raise facilities and has also received other sanctions over the last 4 months.

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MAFIL and its subsidiaries, Asirvad Microfinance Ltd (Asirvad), Manappuram Home Finance Ltd (MAHOFIN) and Manappuram Insurance Brokers Pvt Ltd. This is because all the companies, collectively referred to as the Manappuram group, have significant financial, managerial and operational linkages.

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description
Strengths:
* Established market position in the gold finance business
The family of the promoter, Mr V P Nandakumar, has been in the gold-loan business for more than 60 years. Based on this industry experience, the company has designed an appropriate assessment and underwriting methodology. Assessing the purity of gold, fixing the sum that can be lent against a gram of gold, and determining appropriate LTV ratios are critical aspects in the assessment process. The company has a strong brand and reputation in south India (particularly Kerala and Tamil Nadu). Reputation and trust play a significant role in this segment as these give the customer an assurance of getting back personal gold ornaments once the loan is repaid. After shifting towards shorter tenure gold loans of three months in 2015 to de-risk the portfolio from sharp fluctuations in gold prices, the company has witnessed stability in business with an increase in customer base and gold holdings. The company has also seen an increase in the re-pledging of gold by existing customers, indicating higher customer retention. Delinquencies have also reduced leading to fewer auctions.
 
* Sound capitalisation
The consolidated networth was Rs 6,037 crore and gearing was 4.0 times as on June 30, 2020. Large accretion to networth and moderation in gold loan growth in the past two fiscals resulted in a healthy standalone capital adequacy ratio of 22.9% as on June 30, 2020. Lower asset-side risk (security of gold, which is liquid and is in the lender's possession) also supports capitalisation. AUM in the gold loan segment is expected to grow at a steady rate over the medium term. Other segments (microfinance, housing finance and vehicle finance) have a relatively small scale. CRISIL understands that the group intends to cap its capital allocation to the microfinance segment at 10% due to the unsecured nature of business, and therefore, will look for external investors for the segment in the medium term. Therefore, despite continuation of rapid growth in the microfinance segment, the consolidated gearing is not expected to exceed 5 times over the medium term, though this will remain a key rating monitorable.
 
* Strong profitability driven by high gross spreads and low credit cost
Profitability has remained strong with a consolidated RoMA of 4.6% for the quarter ended June 30, 2020 (5.6% during fiscal 2020), driven by the large profit generated by the gold loan and MFI businesses. The gold loan segment reported profit of Rs 1,180 crore in fiscal 2020, up from Rs 768 crore in fiscal 2019. The profitability has been sustained due to steady reduction in operating expenses and sustained focus on collection. The microfinance segment reported a profit of Rs 235 crore during fiscal 2020 against Rs 132 crore in fiscal 2019. The home finance segment, in its fourth year of operations, achieved breakeven with a profit of Rs 3 crore in fiscal 2019 (Rs 11 crore in fiscal 2020). For the quarter ended June 30, 2021, gold loan segment reported profit of Rs 369 crore while microfinance segment reported marginal loss of Rs 2.6 crore due to special covid-19 provisioning of Rs 75crore provided during the quarter.
 
The consolidated yield increased to 23.9% during Q1 fiscal 2021 (23.4% in fiscal 2020) from 21.7% in fiscal 2018 aided by the microfinance and home loan portfolio. Operating cost reduced due to the benefits of operating leverage in fiscal 2020 with a year-on-year portfolio growth of 30% in fiscal 2020 against 23% a year earlier. Ability to maintain yields and limit operating cost will be critical for stability in profitability. Furthermore, in wake of Covid-19, the company is expected to have higher overdues during the first quarter of fiscal 2021 especially in the microfinance segment. Therefore, ability to restrict credit costs in both gold and non-gold finance segments will remain a key rating monitorable.
 
* Stable funding profile
As on March 31, 2020, the company's consolidated borrowing (including off balance sheet funding through securitisation and ECBs) from banks (public and private) and financial institutions stood at around 63%; significantly higher compared to 12% as on March 31, 2019. During the same period, the share of CP has reduced significantly to 7.2% as compared to 21.45% a year ago. Because of its legacy and highly secured asset class, MAFIL was able to roll over existing bank lines/CP and continue to raise fresh funds from diversified sources. Between April 1 and July 31, 2020, the company raised around Rs 2,983 crore that included Rs 300 crore through term loans, Rs 868 crore through private placement of NCDs , Rs 600 crore and Rs 615 crore under TLTRO and Partial guarantee schemes respectively. The standalone cost of borrowing (yearly average) was 9.1% during fiscal 2020 (8.8% during fiscal 2019). The consolidated cost of borrowing (yearly average) increased to 9.9% during fiscal 2020 (9.5% in fiscal 2019). For the quarter ended June 30, 2020, the consolidated cost of borrowing stood at 9.9%.

Weaknesses:
* High operating cost in the gold and microfinance businesses
The nature of the gold loan business results in high operating cost. With a large network of 4,616 branches as on June 30, 2020, the company incurs substantial branch operating cost as proximity to the customer plays a key role in gold loan financing. Additionally, the company incurs high security cost to ensure the safety of the gold ornaments. To reduce cost per branch, the company is taking steps to increase the gold AUM per branch, which has improved consistently over the years. Though still low at Rs 5.5 crore per branch in Q1 fiscal 2021 (Rs 4.8 crore per branch in fiscal 2020), it has increased from Rs 3.8 crore per branch in fiscal 2019. The company has taken steps to shift customers towards online gold loans to reduce the staff cost at branches. The online gold loan proportion increased to 63% of the gold AUM in Q1 fiscal 2021 (48% of the gold loan AUM in fiscal 2020) from 39% in fiscal 2019.
 
On a standalone basis, the operating cost reduced to 5.7% in fiscal 2020 from 7.2% in fiscal 2019. The company has been taking steps to cross-sell other asset segments and use the existing branch network to reduce operating cost. As a result, the consolidated operating cost reduced to 5.6% in fiscal 2020 from 7.0% in fiscal 2019. In the microfinance business, the AUM per branch, though low at around Rs 5.3 crore as on March 31, 2020, has increased from Rs 2.6 crore as on March 31, 2017. The operating cost is expected to benefit from operating leverage as the portfolio scales up.
 
* Geographical concentration in operations and the associated risks
Operations have significant regional concentration compared to large asset-financing NBFCs; South India accounted for 58% of total AUM as on June 30, 2020. Moreover, there is susceptibility to regulatory risks related to revenue concentration in a single asset class (gold-loan financing), which accounts for 83% of revenue. Though the company has ventured into the vehicle finance, affordable housing finance and microfinance segments, these accounted for 30% of the total portfolio and around 17% of revenue as on June 30, 2020. In view of the large gold loan book (70% of the total portfolio) and the presence of the gold loan business mainly in South India, revenue is likely to remain concentrated geographically and in terms of asset class over the medium term.
 
* Potential challenges associated with non-gold loan segments
The non-gold segments accounted for 30% of the overall portfolio as on June 30, 2020 (33% as on March 31, 2020). While the company has managed to grow these businesses and increase the segmental share over the past two years, potential challenges linked to seasoning of the loan book and asset quality remain. The profitability of the microfinance segment was significantly affected by increased credit cost during fiscal 2018 in the aftermath of demonetisation. Also, the housing finance portfolio is not well seasoned. A portion of the vehicle finance portfolio has witnessed a full seasoning cycle and has seen some stability. However, given that the vehicle finance segment has entered new asset classes such as two-wheeler finance, asset quality as the portfolio scales up will remain a key monitorable. The collection efficiency in the microfinance and housing finance portfolios corrected in fiscal 2019. Nevertheless, managing the asset quality and credit cost over the long run will be critical.
 
With respect to the impact of Covid-19, most of the smaller segments that the company operates in-micro, small and medium enterprise (MSME) finance, home loans and micro finance'could witness challenges, especially in the salaried and self-employed segment, wherein income streams of borrowers is likely to be affected given the challenging macroeconomic environment. Collections across most of these segments dropped in April and May. However, the group is taking steps to improve collections in the non-gold businesses by engaging and reaching out to the borrowers. From a longer-term perspective, as growth within these segments has been limited so far, their asset quality and profitability will be key monitorables.
 
Gold loan companies run the risk of applicability of Kerala Money Lenders Act, 1958, for NBFCs in Kerala. The applicability of the Act is contingent on the decision of the Supreme Court. If applied, lending rates could be impacted and operating expenditure will increase due to the requirement to register each branch with local authorities in Kerala. As 7% of the gold loan portfolio and 15% of the company's branches are in Kerala, this remains a key rating monitorable.
Liquidity Strong

The company's liquidity remains strong, with liquid balance of Rs 4,509 crore as on July 31, 2020 (including cash and liquid investments of Rs 2,785 crore and unutilized CC/WCDL limit of Rs  1724 crore). Liquidity cover for debt obligations arising over  August and September 2020, without factoring in any roll over or incremental collections stands at 1.3 times. However, the company has been able to roll over/ raise facilities and has also received other sanctions over the last 4 months. MAFIL has not availed of the moratorium from any of its lenders under RBI's Covid-19 Regulatory Package.

Outlook: Stable

CRISIL believes MAFIL's capitalisation and asset quality will remain strong supported by its gold loan business. The strong earnings will also provide support as the company diversifies into other asset classes and scales up its non-gold business.

Rating Sensitivity factors
Upward factors
* Diversification into non-gold secured asset classes and increase in their AUM share to over 40% without impairing asset quality
* Demonstrated ability to profitably scale up the housing and vehicle finance businesses significantly on standalone basis while maintaining asset quality
 
Downward factors
* Increase in consolidated gearing to over 5 times
* Steep decline in interest collection in the gold loan business or deterioration in asset quality or profitability in the non-gold loan segments
About the Company

Incorporated in July 1992 and promoted by Mr V P Nandakumar, MAFIL is the flagship company of the Manappuram group. It is a non-deposit-taking NBFC that provides finance against personal gold ornaments. It had 4,380 branches across India as on March 31, 2019. The company went public in August 1995, with shares listed on the stock exchanges of Chennai, Kochi and Mumbai (Bombay Stock Exchange and National Stock Exchange). Over the past three years, the Manappuram group has diversified into other businesses such as microfinance, vehicle finance, loans against property and affordable housing finance. It also entered the insurance broking business.
 
The overall AUM of Rs 25,346 crore as on June 30, 2020, includes gold loan (70%), microfinance (20%), commercial vehicle finance (5%), housing (2%) and lending to other NBFCs (3%). The gold loan portfolio is diversified across 28 states and Union Territories, while the microfinance, commercial vehicle and housing finance portfolios are diversified across 23, 22 and 9 states, respectively.
 
For fiscal 2020, consolidated profit after tax (PAT) was Rs 1,480 crore on total income of Rs 5,551 crore, against a PAT of Rs 948 crore on total income of Rs 4242 crore for fiscal 2019. For Q1 fiscal 2021, company reported consolidated PAT was Rs 368 crore on total income of Rs 1,516 crore.

Key Financial Indicators of MFL - Consolidated
As on/ for the period ended   June-2020 March-2020 March-2019
Total managed assets # Rs crore 32,786 30,987 22,115
Total income Rs crore 1,516 5,551 4242
Profit after tax Rs crore 368 1,480 948
Gross NPA @ % 1.25 0.9 0.5
Adjusted gearing # Times 4.0 3.8 3.3
Return on managed assets # % 4.6 5.6 4.7
#Including off balance sheet assets
@Standalone

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)
ISIN Name of instrument Date of allotment Coupon
Rate (%)
Maturity Date Issue size
(Rs crore)
Complexity Level Rating
NA Non-Convertible Debentures^ NA NA NA 300 Simple CRISIL AA/Stable
NA Long Term Principal Protected Market Linked Debentures^ NA NA NA 250 Highly complex CRISIL PP-MLD AAr/Stable
NA Non-Convertible Debentures^ NA NA NA 250 Simple CRISIL AA/Stable
INE522D07BQ0 Non-Convertible Debentures 31-Jul-20 8.35% 31-Jan-22 335 Simple CRISIL AA/Stable
INE522D07BP2 Non-Convertible Debentures 21-Jul-20 8.50% 21-Jul-22 250 Simple CRISIL AA/Stable
NA Long Term Principal Protected Market Linked Debentures^ NA NA NA 2 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BO5 Long Term Principal Protected Market Linked Debentures 16-Jul-20 9.00% 24-Jun-22 70 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BO5 Long Term Principal Protected Market Linked Debentures 10-Jul-20 9.00% 24-Jun-22 178 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BM9 Non-Convertible Debentures 09-Jul-20 8.75% 09-Jan-22 225 Simple CRISIL AA/Stable
INE522D07BL1 Non-Convertible Debentures 23-Jun-20 8.75% 23-Dec-21 150 Simple CRISIL AA/Stable
INE522D07BH9 Non-Convertible Debentures 27-Mar-20 9.25% 27-Mar-23 200 Simple CRISIL AA/Stable
INE522D07BE6 Non-Convertible Debentures 31-Dec-19 9.75% 31-Dec-21 350 Simple CRISIL AA/Stable
INE522D07BN7 Non-Convertible Debentures 09-Jul-20 9.50% 09-Jul-30 25 Simple CRISIL AA/Stable
INE522D07BB2 Non-Convertible Debentures 27-Sep-19 10.50% 27-Sep-22 215 Simple CRISIL AA/Stable
INE522D07BC0 Non-Convertible Debentures 07-Nov-19 9.75% 07-Nov-22 250 Simple CRISIL AA/Stable
INE522D07BD8 Non-Convertible Debentures 18-Nov-19 9.75% 18-Nov-22 200 Simple CRISIL AA/Stable
INE522D07AF5 Non-Convertible Debentures 31-Jul-18 9.50% 31-Jul-21 50.5 Simple CRISIL AA/Stable
INE522D07AE8 Non-Convertible Debentures 29-Jun-18 9.50% 29-Jun-21 199.5 Simple CRISIL AA/Stable
INE522D07AD0 Non-Convertible Debentures 30-Oct-17 9% 30-Oct-20 200 Simple CRISIL AA/Stable
INE522D07834 Non-Convertible Debentures 18-Oct-14 Zero Coupon 18-Jan-21 15.5 Simple CRISIL AA/Stable
NA Commercial Paper NA NA 7-365 days 4000 Simple CRISIL A1+
NA Proposed Long Term
Bank Loan Facility
NA NA NA 6.25 NA CRISIL AA/Stable
NA Term Loan NA NA 28-Jun-21 50 NA CRISIL AA/Stable
NA Term Loan NA NA 08-Jul-21 87.5 NA CRISIL AA/Stable
NA Term Loan NA NA 30-Sep-22 400 NA CRISIL AA/Stable
NA Term Loan NA NA 22-Mar-22 225 NA CRISIL AA/Stable
NA Term Loan NA NA 28-Jan-22 56.25 NA CRISIL AA/Stable
NA Working Capital Demand Loan NA NA NA 3495 NA CRISIL AA/Stable
NA Cash Credit/ Overdraft facility NA NA NA 660 NA CRISIL AA/Stable
NA Bank Guarantee NA NA NA 20 NA CRISIL A1+
^Yet to be issued
 
Annexure - List of entities consolidated
Entity consolidated Extent of consolidation Rationale for consolidation
Asirvad Microfinance Ltd Full Subsidiary
Manappuram Home Finance Ltd Full Subsidiary
Manappuram Insurance Brokers Pvt Ltd Full Subsidiary
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial Paper  ST  4000.00  CRISIL A1+  11-08-20  CRISIL A1+  24-12-19  CRISIL A1+  17-08-18  CRISIL A1+  08-12-17  CRISIL A1+  -- 
        13-07-20  CRISIL A1+  19-09-19  CRISIL A1+  20-07-18  CRISIL A1+       
        06-07-20  CRISIL A1+  10-09-19  CRISIL A1+  06-07-18  CRISIL A1+       
        16-06-20  CRISIL A1+  30-08-19  CRISIL A1+  28-06-18  CRISIL A1+       
        19-03-20  CRISIL A1+               
        08-01-20  CRISIL A1+               
Long Term Principal Protected Market Linked Debentures  LT  500.00
14-08-20 
CRISIL PP-MLD AAr/Stable  11-08-20  CRISIL PP-MLD AAr/Stable    --    --    --  -- 
        13-07-20  CRISIL PP-MLD AAr/Stable               
        06-07-20  CRISIL PP-MLD AAr/Stable               
Non Convertible Debentures  LT  3215.10
14-08-20 
CRISIL AA/Stable  11-08-20  CRISIL AA/Stable  24-12-19  CRISIL AA/Stable  17-08-18  CRISIL AA-/Positive  08-12-17  CRISIL AA-/Stable  CRISIL AA-/Stable 
        13-07-20  CRISIL AA/Stable  19-09-19  CRISIL AA/Stable  20-07-18  CRISIL AA-/Stable  25-10-17  CRISIL AA-/Stable   
        06-07-20  CRISIL AA/Stable  10-09-19  CRISIL AA/Stable  06-07-18  CRISIL AA-/Stable  04-10-17  CRISIL AA-/Stable   
        16-06-20  CRISIL AA/Stable  30-08-19  CRISIL AA/Stable  28-06-18  CRISIL AA-/Stable       
        19-03-20  CRISIL AA/Stable               
        08-01-20  CRISIL AA/Stable               
Short Term Debt  ST                  25-10-17  CRISIL A1+  CRISIL A1+ 
                    04-10-17  CRISIL A1+   
Fund-based Bank Facilities  LT/ST  4980.00  CRISIL AA/Stable  11-08-20  CRISIL AA/Stable  30-08-19  Withdrawal  17-08-18  CRISIL AA-/Positive  08-12-17  CRISIL AA-/Stable  CRISIL AA-/Stable 
        13-07-20  CRISIL AA/Stable      20-07-18  CRISIL AA-/Stable  25-10-17  CRISIL AA-/Stable   
        06-07-20  CRISIL AA/Stable      06-07-18  CRISIL AA-/Stable  04-10-17  CRISIL AA-/Stable   
        16-06-20  CRISIL AA/Stable      28-06-18  CRISIL AA-/Stable       
        19-03-20  CRISIL AA/Stable               
        08-01-20  CRISIL AA/Stable               
Non Fund-based Bank Facilities  LT/ST  20.00  CRISIL A1+  11-08-20  CRISIL A1+    --    --    --  -- 
        13-07-20  CRISIL A1+               
        06-07-20  CRISIL A1+               
        16-06-20  CRISIL A1+               
        19-03-20  CRISIL A1+               
        08-01-20  CRISIL A1+               
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 20 CRISIL A1+ Bank Guarantee 20 CRISIL A1+
Cash Credit/ Overdraft facility 660 CRISIL AA/Stable Cash Credit/ Overdraft facility 660 CRISIL AA/Stable
Proposed Long Term Bank Loan Facility 6.25 CRISIL AA/Stable Proposed Long Term Bank Loan Facility 6.25 CRISIL AA/Stable
Term Loan 818.75 CRISIL AA/Stable Term Loan 818.75 CRISIL AA/Stable
Working Capital Demand Loan 3495 CRISIL AA/Stable Working Capital Demand Loan 3495 CRISIL AA/Stable
Total 5000 -- Total 5000 --
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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CRISIL uses the prefix ‘PP-MLD’ for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011 to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL's use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: www.crisil.com/ratings/credit-rating-scale.html