March 26, Initial Amount Rated (Rs. crore) Amount o/s after last surveillance (Rs. crore) PTC Series A

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March 26, 2021

Madura Micro Finance Limited: Ratings withdrawn for PTCs issued under two

microfinance loan securitisation transaction

Summary of rating action

Trust Name Instrument*

Initial Amount Rated

(Rs. crore)

Amount o/s after last surveillance (Rs. crore) Current o/s Amount (Rs. crore) Rating Action Northern ARC 2019 MFI

Vanya PTC Series A 22.26 9.15 0.00

[ICRA]AA-(SO); Withdrawn Northern Arc 2019 MFI

Thurston PTC Series A 19.96 12.15 0.00

[ICRA]A(SO); Withdrawn *Instrument details are provided in Annexure-1

Rationale

ICRA has withdrawn the ratings for pass through certificates (PTCs) issued under two transactions backed by micro loan pools originated by Madura Micro Finance Limited (MMFL), as tabulated above. All the payouts to the investors in the above-mentioned instrument has been made and no further payment are due to the investors.

The key rating drivers, liquidity position, rating sensitivities have not been captured as the rating assigned to the instrument has been withdrawn. The previous detailed rating rationale of surveillance exercise is available at the following link: click here

Analytical approach

Analytical Approach Comments

Applicable Rating Methodologies ICRA's Policy on Withdrawal and Suspension of Credit Rating Parent/Group Support Not Applicable

Consolidation/Standalone Not Applicable

About the company

Madura Micro Finance Limited (MMFL) is a non-banking finance company (NBFC) established in 2005. MMFL obtained an NBFC-MFI licence in November 2013. CAGL had acquired 76.08% stake in MMFL during March 2020 and it has become a subsidiary of CAGL. Other shareholders include Ms. Tara Thiagarajan (12.5%) followed by Mr. M. Narayanan (5.5%) and the remaining with the Employees Welfare Trust as of March 2020. MMFL majorly provides credit to economically weak women through self-help groups. MMFL had AUM of Rs. 1,986 crore as on September 30, 2020. It had operated in in eight states through 93 districts and having 459 branches as of September 2020.

Key financial indicators (IndAS)

FY2019 FY2020 H1 FY2021

Total Income 386.1 475.5 214.5

Profit after Tax 85.5 79.8 17.8

Net Worth 322.0 401.6 419.4

Managed Portfolio 1,957.0 2,149.7 1,986.0

Total Managed Assets 2,152.0 2,272.9 2,219.6

Return on Managed Assets % 5.0% 3.6% 1.6%

Return on Net Worth % 30.6% 22.1% 8.7%

Gearing (reported - times) 5.4x 4.3x 3.9x

Gross NPA% 0.9% 1.6% 1.2%

Net NPA% 0.0% 0.6% 0.0%

CAR% 19.4% 23.0% 25.0%

Note: Amounts in Rs. crore

Status of non-cooperation with previous CRA: Not applicable

Any other information: None

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Rating history for past three years

Instrument

Current Rating (FY2021) Chronology of Rating History for the past 3 years

Type Amount Rated (Rs. crore) Amount Outstanding (Rs. crore) Date & Rating in FY2021

Date & Rating in FY2020 Date & Rating in FY2019 Date & Rating in FY2018 Mar 26, 2021 Feb 26, 2020 Jun 27, 2019 Apr 1, 2019 - - 1 Northern ARC 2019 MFI Vanya PTC Series A 22.26 0.00 [ICRA]AA-(SO); Withdrawn [ICRA]AA-(SO) [ICRA]A(SO) Provisional [ICRA]A(SO) - Instrument

Current Rating (FY2021) Chronology of Rating History for the past 3 years

Type Amount Rated (Rs. crore) Amount Outstanding (Rs. crore) Date & Rating in FY2021

Date & Rating in FY2020 Date & Rating in FY2019 Date & Rating in FY2018 Mar 26, 2021 Feb 26, 2020 Sep 19, 2019 Aug 6, 2019 - - 2 Northern Arc 2019 MFI Thurston PTC Series A 19.96 0.00 [ICRA]A(SO);

Withdrawn [ICRA]A(SO) [ICRA]A(SO)

Provisional [ICRA]A(SO)

Complexity level of the rated instrument

ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The classification of instruments according to their complexity levels is available on the website www.icra.in

Annexure-1: Instrument details

Issue Name Instrument Name

Date of Issuance / Sanction

Coupon Rate Maturity Date Amount Rated (Rs. crore)

Current Rating

Northern ARC 2019 MFI Vanya

PTC Series A March 2019 9.55% May 2021 0.00 [ICRA]AA-(SO); Withdrawn Northern Arc

2019 MFI Thurston

PTC Series A August 2019 9.25% May 2021 0.00 [ICRA]A (SO); Withdrawn

Annexure-2: List of entities considered for consolidated analysis

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aurav

ashhalkar

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