Arya Financial Services PROPOSAL - OCT - SMCC

Utkarsh Small Finance Bank – WSL Credit
Date: Oct 14, 2022

Department: WSL Credit
HO: Varanasi
Credit Approval Memorandum to SMCC

For Approval of Additional Term Loan of ₹11.25 Crores and BC Limit of ₹50 Crores to Aryadhan
Financial Solutions Private Limited (AFSPL)
RM Mr. Chandershekhar Mahto

Source Direct
Recommending Authority -
Sanctioning Authority SMCC
1. Borrower Summary:
Aryadhan Financial Solutions
Private Limited (AFSPL)
Regd.Office: H-82, Sector-63,
Ground Floor, Behind Ginger
WAREHOUSE RECEIPT
Hotel, Noida, Uttar Pradesh,
Name: Type of Business: FINANCE (WRF) ON POST-
201301
HARVEST SIDE
Corporate Office: H-82, Sector-63,
Ground Floor, Behind Ginger
Hotel, Noida, Uttar Pradesh,
201301
Jan 27, 2017

Date of
Constitution: Private Limited Company LEI number:
Incorporation:
8945007AOIFJ0ZEYRY44
Banking Banking
Arrangements Multiple Arrangements Multiple
(existing): (proposed):
Yes. Term Loan Sanctioned for

Additional Term Loan & Fresh BC Dealings with
Type of Proposal: Rs. 15 Crores in May 2022
Limit USFBL: (Y/N)
(present O/s Rs.8.75 Crores)
Internal Rating: USFB 4 (Moderate Safety) Listed: N
External Rating:
Instruments CRA Rating/Grading Rating Action RR Date

Long Term CRISIL
CRISIL Reaffirmed/Assigned May 25, 2022
Rating BBB-/Stable
Non- CRISIL CRISIL Reaffirmed May 25, 2022
All amount in note in ₹ Crore, unless specified Page 1 of 52

Convertible
BBB-/Stable
Debenture
CRA - Credit Rating Agency, RR – Rating Rationale
Key Rating Factors:

Credit Rating Agency Key Rating Strength Key Rating Weaknesses
 Operational linkages, synergies and  Limited track record of operations
financial support from the parent  Earnings profile currently constrained
 Adequate capital position, amidst lower spread and elevated
CRISIL
supported by regular equity operating expenses
infusion
2. Exposure details under NBFC Industry:

2.1 Industry wise limit & exposure [Rs cr]:
Particulars Amount
NBFC Industry exposure Limit at Bank level 1150.00
Exposure of Treasury Department as on October 31, 2022 0.00
Exposure of WSL Department as on October 31, 2022 1061.09
Exposure of WSL on undisbursed 0.00
Exposure of this proposal 11.25
Total WSL Exposure, including Undisbursed Exposure/Proposal in pipeline 1072.34
Total NBFC Industry exposure at Bank level, including undisbursed. Excluding the
1072.34
repayment in the month of Nov’22
2.2 Obligor wise Exposure, including undisbursed [Rs. Cr]:

Obligor Limit Exposure
Single Obligor Limit 75.00 20.00*
100.0
Group Obligor Limit -
0
*Including existing exposure of Rs. 8.75 Crores and proposed additional Term Loan of Rs. 11.25 Crores.
3. Present Proposal:
Sanction of Additional Term Loan of ₹11.25 Crore for on lending to the Borrowers of M/s Aryadhan Financial
Services Private Limited and BC Limit of ₹50 Crores.
As per the Credit Approval Authorization Matrix (approved by the Board of the Bank in the Board meeting held
on Sep. 17, 2021 and vide circular no. USFB/CIR/CREDIT/2022-23/07/115 dated Oct. 10, 2022), the delegation
of powers vested with Senior Management Credit Committee (SMCC) of the Bank for lending to Wholesale
Corporates are upto ₹20.00 Crore to Borrowers with external rating below “A-“ or “Unrated” and upto ₹30.00
Crore to Borrowers with external rating “A- & above“. SMCC is also empowered to sanction BC Limit upto
₹100 Crores referring to aforementioned circular.
Given the proposed Term Loan Exposure is of ₹20.00 Crores (including existing and proposed), Proposed BC
Limit is of ₹50 Crores and external rating of “BBB-” (lowest), present proposal falls under the purview of
SMCC. Accordingly, proposal is presented to SMCC for approval.
4. Brief Background & Business Model:

Aryadhan Financial Solutions Private Limited (AFSPL)
Aryadhan Financial Solutions Private Limited (AFSPL) was incorporated in Jan 2017. It is engaged in the
business as a wholly-owned Non-Banking Financial Company (NBFC) subsidiary of Arya Collateral
Warehousing Services Private Limited (ACWSPL). The company provides post-harvest commodity financing in

association with its parent and manages more than 10,252 warehouses across the country. AFSPL provides loans
to farmers against the commodities kept and managed at the parent’s warehouses
AFSPL is a Non Deposit Taking NBFC (other than Systemically important NBFC) registered with RBI as an
asset finance company and has and has its registered office in Noida, Uttar Pradesh. It is involved in financing to
Farmers, Farmer Producer Organizations (FPO), Aggregators and Small Traders Through Warehouse Receipt
Finance (WRF) on Post-Harvest Side.
AFSPL has portfolio presence in 14 States. The company has 1 branch and client base of 826 as at the end of Jun-
22.
As on Mar. 31, 2022, AFSPL had AUM of ₹241.61 Crore (Own Portfolio of Rs.235.45 Crores and Managed
Portfolio of Rs.5.75 Crores) and Adjusted NW of ₹225.61 Crores.
As on Sep. 30, 2022, Company had –

 Adjusted Networth of ₹230.71 Crore
 AUM of ₹355.28Crore
 Own portfolio of ₹348.95 Crore
 Managed Portfolio of ₹6.33 Crore
Particulars Existing Proposed

Term Loan-I Term Loan –II
Facility Term Loan Term Loan
Sanction Date 26.05.2022 NA
Sanctioned 15.00 ₹11.25 Crore
Amount
O/s. (Nov 16., 8.75 Total exposure on AFSPL shall not be more than
2022) ₹20.00 Crore
Tenor 12 months 12 months
Interest Rate 11.25% floating linked with last 12 weeks One Year MCLR + 0.03%, i.e., 11.86% p.a.
average 364 days T-Bill ~ Quarterly Reset Floating (One Year MCLR as on date is 11.83%)
(at the time of sanction) (Annual Reset)
Processing Fee 0.25% plus applicable taxes 0.10% plus applicable taxes
Security Primary: Book Debts of 110% Primary: Book Debts of 110%
Cash Collateral: 5% Cash Collateral: 5%
Repayment 12 Equal Monthly instalments 12 Equal Monthly instalments
PG Nil Nil
CG Arya Collateral Warehousing Services Arya Collateral Warehousing Services Private

Private Limited Limited
Documentation ₹15,000/- (Upfront) ₹15,000/- (Upfront)
Charges
Monitoring ₹15,000/- (Annual) ₹15,000/- (Annual)
Charges
Compliance Complied with NA
Asset Standard NA
Classification
 Brief on Arya Collateral Warehousing Services Private Limited (Holding Company of Aryadhan
Financial Solutions Private Limited)
Arya Collateral Warehousing Service Private Limited (ARYA) was incorporated 1982. In 2002, it forayed into
Collateral Management for management of stocks of primarily agricultural produce. ARYA was promoted by the
J.M. Baxi Group that was established in the year 1916. M/s. J.M. Baxi & Company is India's largest and most

professional shipping and integrated end-to-end logistics Agency offering an array of services that are niche
driven and unique in terms of customer focus, quality, safety, technology, innovation and professional
competence.
Arya Collateral Warehousing Services Private Limited (ACWSPL) is engaged in providing warehousing and
management of stocks primarily agricultural products. The company offers warehousing and collateral
management, audits and surveillance, financial inclusion and priority sector assistance, quality certification, and
assaying services. ACWSPL works with farmers, farmer organizations, financial institutions, agriculture
corporations, development actors, commodity exchanges, and international players. The company’s clientele
includes ADM, Britannia, ITC Limited, Axis Bank, HDFC Bank, ICICI Bank, Yes Bank, and RBL Bank.
 ARYA was one of the first Collateral Management Companies that was incorporated in India. ARYA
was incorporated with a Mission to deliver quality warehousing solutions with an effective blend of
technology & business systems. The Company today extends its expertise at various levels of the Agri
supply chain. It works extensively with Financial Institutions and Commodity Exchanges to provide
efficient linkages to farmers and producer companies.

Target Customers for the Arya are Farmers, Farmer Producer Organisations (FPO), Processors, Financial
Institutions, Agri Corporations, International Buyers and Development Actors


 Arya has presence in 10560 Warehouses in 800+ locations to provide services to its target customers. At
group level, Arya broadly provides following services:
 Professional Warehousing
 Collateral Management
 Agri-Warehousing Marketplace
 Audit & Surveillance
 Consulting
 Finance
Professional Warehousing
ARYA provides cost-effective warehousing solutions at strategic locations anywhere in the country. We advise
clients on storage and preservation norms for commodities and follow it through with impeccable execution for
best quality storage strengthened by specialised quality testing and pest control mechanisms. This is supported by
a web-based software application (with access to Clients), thorough Audit processes and adequate Insurance
coverage.
Collateral Management
As a collateral manager, ARYA evaluates the suitability and value of the commodity collateral on behalf of these
lenders. We take custody of such collateral and maintain it through the loan period. Arya also arranges to dispose
of such collateral on behalf of Banks in case of defaults.
Agri-Warehousing Marketplace
ARYA has launched A2Z Godaam platform in Aug-20 which is a first comprehensive warehousing platform
integrating warehouse discovery with integrated fulfilment (warehousing, finance and services on one platform).
Now this service is being provided by Aryatech Platforms which is a wholly owned subsidiary of Arya Collateral
Warehousing Services Pvt. Ltd. This will provide exponential expansion in warehouse discovery and reach.
Services include Finance, Insurance, Warehouse Management, Preservation, Logistics & Handling, Monitoring,
Quality Testing and Commodity Marketplace.
Audit & Surveillance

The audits and surveillance packages provided by ARYA involve carrying out third party audits / surveillance of
the stocks / assets that are financed by financial institutions, Agribusiness Corporations and FMCG majors. The
format of such reports is customized to the need of each Bank / Financial Institution.
Consulting
Arya provides knowledge services on Agri-financing, Warehousing, Priority sector and FPOs which include
unique bundle of consulting & implementation.
Finance
Financial services are provided by Aryadhan Financial Solutions Pvt. Ltd. which is a wholly owned subsidiary of
Arya Collateral Warehousing Services Pvt. Ltd. ARYADHAN has been formed to fulfil the financial
requirements of farmers, farmer organizations and agri value chain players by extending post-harvest commodity
finance loans. ARYADHAN has been incorporated on January 27, 2017 with the purpose of acting as a Non-
Banking Finance Company (NBFC). An approval has been received from RBI with licence no N-12.00459 dated
16th August, 2017. At present Aryadhan Financial Solutions Pvt Ltd is financing only against the commodities
stored in the warehouses which are under control of Arya Collateral Warehousing Services Private Limited.
Arya has acquired Prakshep Tech Solutions Private Limited, a Bengaluru based tech company in last FY. The
Company is engaged in the collection, analysis, presentation, and delivery of geospatial information. The
company provides services such as Geospatial data processing and mapping, 3D GiS and visualization, aerial
survey and lidar. The company was incorporated in 2018 and has its registered office located in Bangalore,
Karnataka.


5. SWOT Analysis:
Strengths:
 Operational linkages, synergies and financial support from the parent
 Adequate capital position, supported by regular equity infusion
 Experienced Senior Management with complementary skill sets and vast experience
 Availability of sound way out in case of default by the borrowers with nearly no loss (Liquidation
Mechanism)
 Enhanced ownership and control over security provided by the borrowers since stored with Parent
Company
 Default free track record with other lenders.
Weakness:
 Limited track record of operations
 Earnings profile currently constrained amidst lower spread and elevated operating expenses
Opportunities:
 Leveraging on its strong capital base to diversify and expand in more product lines and geographies
 Scope for deepening WRF Funding since private warehousing is yet to be explored fully
Threats:
 Government regulation relating to hoarding/export-import restriction
 Systemic issues in the NBFC sector

6. Management:
6.1Directors’ Profile:
Name Designation DOJ Profile
Anand Director 27.01.2017 He has an experience of 10 years in Agri-Commodity Based
Chandra financing. He has been a part of ICICI Bank as the National
Product Head for the Agri-Commodity Finance Business. Has
been instrumental in developing the product and the associated
processes for the Bank since the inception of the product
Margapuri Director 27.01.2017 He has experience of working in the Cooperative marketing,
Prasanna Rao FMCG Sales and Agri-financing sectors for the last 15 years. As
part of his 8-year stint at ICICI Bank, the largest private sector
Bank in India, he has headed the Agri-commodity finance
business and had built / managed a peak portfolio of $500.0
million for the Bank. During his stint in ICICI bank he was
instrumental in the development of finance portfolio for Agri
Supply Chain Infrastructure. He has closely worked with Agri
Processors, Traders, Commission agents, Farmers across various
agricultural mandis in India. He has also worked with prestigious
organisations like Amul and Coca-Cola in India in the areas of
supply chain, marketing and sales.
Kushal Nominee 03.04.2018 He has an experience of more than 10 years in the field of
Agrawal Director Finance and Investing business. He has been part of Aspada
group for more than 6 years and have valuable experience as a
Investor in various fields of Business and is currently Board
Member of 6 companies engaged in various business like Agri
Processing, Hospital group, Logistics and Supply Management
company.
Chattanathan Managing 27.06.2019 He has an experience of more than 11 years in ICICI Bank as
Devarajan Director Group Product Head and Inclusive Banking, responsible for over
Rs. 15000 crore books, for setting up the retail KCC business and
played a major role in setting up the CBF and Rural Credit
Business of the Bank. He managed the collection channel of
almost about 800 agencies across the country. He managed
almost about 800 Warehouses and about Rs. 1000 crore plus of
Agri Commodities, margin Call Monitoring and enabling
liquidation of commodities. Under his span of leadership, bank
have recorded a decreasing trend in losses, adopted exit strategies
for unviable markets with zero incremental NPA in most of the
products while reducing the cost of collection by almost 35%
during the period. He was rated as one of the best top 10 DGM's
in the area of Innovation and Managing change, 2006/07.
Directors/Partner on the board of other companies/LLP:

Name Designation DOJ Other Directorship & Partnership

Anand Chandra Director 27.01.2017  Aryatech Platforms Private Limited
 Agri Warehousing Service Providers (India)
Association
 Aryadhan Foundation For Equitable Agriculture
 Arya Collateral Warehousing Services Private
Limited
Margapuri Prasanna Director 27.01.2017  Aryatech Platforms Private Limited
Rao  Aryadhan Foundation For Equitable Agriculture
 Vriddhi Rural Prosperity Services Private
Limited
 Arya Collateral Warehousing Services Private
Limited
Kushal Agrawal Nominee 03.04.2018  Lightrock Investment Advisors Private Limited
Director  Lightrock Corporate Services Private Limited
 Be Well Hospitals Private Limited
 Allfresh Supply Management Private Limited
 LR India Investment Managers Ifsc Llp
Chattanathan Managing 27.06.2019  Aryatech Platforms Private Limited
Devarajan Director  Arya Collateral Warehousing Services Private
Limited
There is no change in board of directors of Aryadhan Financial Solutions Private Limited (AFSPL) since July-
2019.
There is no director on board of Aryadhan Financial Solutions Private Limited (AFSPL) which is on any bank
board. Thus, there is no connected lending currently.
6.2Senior Management:
Sinc
e
with Educational
Name Designation Brief profile
Arya qualification
Grou
p
He has an experience of more than 11 years in
PG Diploma
ICICI Bank as Group Product Head and Inclusive
in Public
Banking, responsible for over Rs. 15000 crore
Relations and
books, for setting up the retail KCC business and
Journalism
played a major role in setting up the CBF and
from School
Rural Credit Business of the Bank. He managed
of
the collection channel of almost about 800
Communicatio
agencies across the country. He managed almost
n and
Chattanath about 800 Warehouses and about Rs. 1000 crore
Managing Jul- Management
an plus of Agri Commodities, margin Call
Director 2019 Studies,
Devrajan Monitoring and enabling liquidation of
Kochi, B.Sc
commodities. Under his span of leadership, bank
(Agriculture)
have recorded a decreasing trend in losses,
from SV
adopted exit strategies for unviable markets with
Agriculture
zero incremental NPA in most of the products
College
while reducing the cost of collection by almost
Tirupati,
35% during the period. He was rated as one of the
CAIIB an
best top 10 DGM's in the area of Innovation and
DFS
Managing change, 2006/07.
Margapuri Director Sep- Chevening He has experience of working in the Cooperative

Financial
Services
Fellowship
from Kings
College,
marketing, FMCG Sales and Agri-financing
London in
sectors for the last 15 years. As part of his 8-year
2018, PG
stint at ICICI Bank, the largest private sector Bank
Diploma in
in India, he has headed the Agri-commodity
Rural
finance business and had built / managed a peak
Management
portfolio of $500.0 million for the Bank. During
from Institute
Prasanna his stint in ICICI bank he was instrumental in the
2012 of Rural
Rao development of finance portfolio for Agri Supply
Management,
Chain Infrastructure. He has closely worked with
Anand
Agri Processors, Traders, Commission agents,
(IRMA) in
Farmers across various agricultural mandis in
1999,
India. He has also worked with prestigious
Bachelor of
organisations like Amul and Coca-Cola in India in
Science
the areas of supply chain, marketing and sales.
(B.Sc.) from
Ravenshaw
College,
Cuttack in
1997
B.Sc (in
Agriculture)
2002 –
Allahabad
Agriculture
Institute
Deemed
University,
Allahabad
Post Graduate
Diploma in
Management
He has an experience of 10 years in Agri-
(Agri
Commodity Based financing. He has been a part
Business
of ICICI Bank as the National Product Head for
Anand Oct- Management)
Director the Agri-Commodity Finance Business. Has been
Chandra 2012 2004 -
instrumental in developing the product and the
National
associated processes for the Bank since the
Institute of
inception of the product
Agricultural
Extension
Management,
Hyderabad
Food &
Agribusiness
Management
Program 2006
- Cornell
University,
Ithaca, New
York
Inderjeet Chief Jan- MBA in Agri Inderjeet Singh is a veteran in Agri Business and
Singh Business 2019 Business form has been associated with rural lending,
Officer Govind Commodity Funding, Collateral management and
Ballabh Pant other facets of Agri Business for more than 20
Krishi Evam years now. He has worked with institutions like

UPL, ICICI Bank, HDFC Bank, Soc Gen, DBS

Praudyogik
Bank and NBHC during this period. During this
Vishwavidyal
period, he has been involved with ideation of new
aya in 2000,
concepts and products which include warehouse
MSc (Ag.
receipt finance, corporate linked farmer funding
Economics)
etc. He has worked with leading Agri-input
from Govind
companies, Banks and collateral management
Ballabh Pant
companies and has exposure to sales of agri
Krishi Evam
inputs, rural, agri and SME lending, Collateral
Praudyogik
management and agri warehousing. He is a post-
Vishwavidyal
graduate from GB Pant university of agriculture
aya in 1998
and Technology.
Joginder General Dec- B. E. (Mech) Over fifteen years of experience in agricultural or
Ralhan Manager - 2014 from C R rural value chain activities. Successfully
Farm Vertical State College completed two years of procurement with
of Engg, Maharashtra SRLM with UNDP for women
Murthal, in collectives and FPOs in Vidharbha region. Some
1998, PG other important highlights are mentioned below:
Diploma in Conducted business planning and capacity
Rural building for BoDs of Women Farmer Collectives
Management in Gujarat and FPOs in Maharashtra on value
(IRMA) in chain, Financial literacy and Marketing.
2005, Developed models of price risk based on prices of
Certificate agri commodities to mitigate risk of reduction of
program on prices stocked by FPOs. Acted as Training
‘Dairy Facilitator in 4 ‘Milk Launch Competence
Technology Building Training Programmes’ for all sales staff
for Non-Dairy of 16 MMOs across India and Key facilitator in 5
Technologists’ ‘Self-Leadership Development Programmes’ for
organized by Wholesale Distributors (WDs) of Delhi and
SMC College Haryana region. Managing overall sales activities
of Dairy of value chain of dairy range for improving
Science, systems and implementation of best practices in
Anand in Dec distribution mainly channel, finances and
2005, Web marketing to ensure cost reduction and
based course improvement in product servicing. Estimation of
on ‘Certificate the overall CBF (Commodity based Finance)
in Project potential of Maharashtra and Madhya Pradesh and
Management’ the current gap vis-à-vis the existing CBF book of
from Project the state.
Management
Associates,
India
(www.pmguru
online.com) in
2007,
Management
Development
Programme
(MDP) on
‘Enhancing
Sales Force
Performance’
at Indian
Institute of
Management,
Ahmedabad
(IIMA) in Jan

2008
Mr. Ritesh Raman is working as business head-
Warehousing & Collateral Management. He has
work experience of 20 years. Has previously
MBA (Agri
Ritesh Jul- worked as Head-Agri Infrastructure at Frontier
Head Business Business)
Raman 2013 Growth Advisors, Zonal Manager-CCMG at ICICI
from NIAM.
Bank, Area Manager at NCMSL, Sales Executive
at Dow Agrosciences, and Senior Sales Executive
at United Phosphorus Limited.
BTech (NIT, Karthk Sundararaman has work experience of over
Jun- Tiruchirappall 10 years. He has earlier worked with ECTP and
Karthik KS Head Strategy
2021 i), Bunge North America. He was wide experience in
Commodity Risk Management.
Chartered Qualified CA in 2018. Worked as Audit Manager
Credit May-
Ankita Jain Accountant, at Rajesh Jain & Co from Jun 2016 to May 2018
Manager 2018
ICAI before joining Arya Group.
Associated with Arya Group since Sep 2020. She
Nisha Sep-
Legal LLB worked for 4 A Securities Limited before joining
Choudhary 2020
Arya Group.
Mr. DS Tapaswi is Head- Internal Audit &
Surveillance at Arya Group. He is ex-navy officer.
Has worked in Indian Navy from Feb 1995 to Feb
Daya 2010. He hasar worked with Indian Commodities
Dec-
Shankar Internal Audit B Sc where he reported to DIG, Indian Commodities.
2021
Tapaswi He worked with Arya form 2012 to 2017 then
rejoined Arya in Dec-2021 after working with
CGR Collateral Management and Kalyx
Warehousing Pvt Ltd.
Mr. Sandeep Katiyar moved out from the of Aryadhan Financial Services Private Limited in October 2022 in
search of better career opportunity. He was General Manager Finance with AFSPL.
Other than this, there is no major change in senior management in recent past.
7. Ownership
7.1Capital Structure as on Sep. 30, 2022
Type of Capital ₹ in Crore
Equity Share 32.50
Authorized Capital
Preference 2.00
Total 34.50
Equity Share 30.57
Paid up capital Preference 1.38
Total 31.95
Networth Networth of ₹ 232.26 Crore, Adjusted NW of ₹ 230.71 Crore at the end of Sep’22
FYs ₹ in Crore
CFY Nil
FY22 100.00
FY21 75.01  Capital infusion of Rs.100 Crores was done by Arya
FY20 42.00 Collateral Warehousing Services Private Limited
Equity infusion FY19 11.48 (Holding Company) in FY22. Allotment of 597315
history Including share shares was made at Rs.1674 per share including
premium premium of Rs.1574 per share.
CFY – Current
Financial Year

7.2 Shareholding Pattern as on September 30, 2022
Equity Shares
Sr. No of % of equity Type of shareholding

Name of the Shareholders
No. Shares capital (Equity/CCPS/OCPS/CCDs)
Arya Collateral Warehousing

1 3056817 100.00% Equity
Private Limited
2 Margapuri Prasanna Rao 1 0.00% Equity
3056818 100.00%
0.01% Compulsory convertible non-cumulative preference shares

% of
Sr. Name of the No of
Shares equity Type of shareholding (Equity/CCPS/OCPS/CCDs)
No. Shareholders
capital
Arya Collateral
3 Warehousing Private 138028 100.00% CCPS
Limited
Note:
Aryadhan Financial Solutions Private Limited is 100% subsidiary of Arya Collateral Warehousing Private
Limited. Shareholding pattern of Arya Collateral Warehousing Private Limited is given below:
Promoter/
Name of Class of No. of No. of Shares on Fully % of Holding (On
Non
Shareholder Shares Shares Diluted Basis Fully Diluted Basis)
Promoter
Mr. Prasanna
Promoter Equity 9.43%
Rao 50,917 50,917
Mr. Anand
Chandra 28,617 28,617
Mr. Devarajan
Chattanathan 15,342 15,342
Mr. Krishna B
Non Promoter Equity 8.82%
Kotak 47,653 47,653
Mr. Dhruv K
Kotak 15,885 15,885
Mr. Vir K
Kotak 15,885 15,885
Mr. Gurpreet
Dhaliwal 37,684 37,684
ESOP Non Promoter Equity 5.00%
27,000 27,000
Aspada Non Promoter Equity 0.02%
100 100
Aspada Non Promoter CCPS 15.43%
97,285 83,342
Omnivore Non Promoter Equity 0.00%
10 10
Omnivore Non Promoter CCPS 6.63%
35,802 35,802
Lightrock
Non Promoter CCPS 3.10%
Growth Fund 16,751 16,751
Omnivore Non Promoter CCPS 2.14%
11,552 11,552
Omnivore Non Promoter Equity 0.79%

Secondary 4,250 4,250

Lightrock
Quona Non Promoter CCPS 8.99%
48,519 48,519
LR India
Holdings 25,743 25,743
Quona Non Promoter CCPS 1.34%
7,231 7,231
Lightrock
Asia Impact
Invest S.A. 10 10
Asia Impact
Invest S.A. 40,290 40,290
Total 5,53,937 5,39,994 100.00%
Promoters holding is 17.57% on diluted basis.
Investors Profile
Name Profile Key Area of Investment
Lightstone Fund S.A is Luxembourg Lightstone and Aspada invest in sustainable

domiciled a reserved alternative investment companies in the agriculture, fintech, post-harvest
fund and was established as an umbrella solutions, healthcare and education space. Some
fund structure with initially one sub-fund, of notable investments are INI Farms which is
i.e. Lightstone Global Fund. Lightstone connecting farmers of fresh produce to market,
Aspada Fund S.A. is managed by its Alternative Waycool Foods which is connecting farmers with
Investment Investment Fund Manager i.e. LGT Capital organized players, Capital Float is leading digital
Company & Partners Limited. lenders for SMEs and consumer, Neogrowth
Lightstone Fund which is providing credit to SMEs, and Aye
Aspada Investment Company is a Mauritius
S.A. (Affiliates) Finance which providing finance to Micro
domiciled Company. It invests in
Enterprises. Other investments in the agri and
companies that create positive social impact.
fintech sectors include Ummeed Housing Finance,
It has the LGT Group and Soros Economic
Shiksha Finance, Varthana Finance, Vivriti,
Development Fund as it shareholders.
Smartcoin, EM3 Agri Services, Allfresh Supply
Management, Siddhivinayak Agri Processing and
Lawrencedale Agri Processing.
Key investments of Omnivore are Agnext which

is solving problem of quality testing at farm level
Omnivore has keen interest in Farmer for farmers, Dehaat which is providing end-to-end
Omnivore
Platforms, Rural Fintech, Precision solutions and services to the farming community
Partners India
Agriculture, Agri Biotech and post-harvest in India, Gramcover which is a composite
Fund 2
technologies. insurance broking firm focused on insurance
product design and tech enabled distribution for
rural India and Skymet, which is the pioneer in
IoT in the area of weather industry.
Accion Quona Accion Quona Inclusion Fund invests in

Inclusion Fund fintech innovators that are advancing
Key investment of Quona are Indiamart which os
inclusion of bottom of pyramid. It’s
largest B2B discovery platform, ZestMoney
investing that gives back in the form of more
which is India's leading digital consumer lending
financially secure families and more
brand for customers with no or limited credit

history, SMECorner which provides affordable

prosperous businesses. They invest in long term secured and unsecured credit products
emerging markets across South and to MSMEs, Shubham which provides affordable
Southeast Asia, Africa and Latin America. housing finance and Neogrowth which is
providing credit to SMEs.
Asia Impact helps to integrate rural under-served

Asia Impact It is a fund of Credit Access with
farming communities across Asia to markets at
Investment S.A. headquarter in Switzerland.
scale.
8. CIBIL Checks
CIBIL CIBIL Delinquencies, if

Name of Company/Directors Remarks
Score Report Date any
ARYADHAN FINANCIAL
NA 10.11.2022  Nil -
SOLUTIONS PRIVATE LIMITED
ARYA COLLATERAL 10.11.2022
WAREHOUSING SERVICES CMR-1  Nil -
PRIVATE LIMITED
ARYADHAN FOUNDATION 10.11.2022
FOR EQUITABLE NA  Nil -
AGRICULTURE
ARYATECH PLATFORMS 10.11.2022
NA  Nil
PRIVATE LIMITED
10.11.2022 CIBIL Score was 743 on
Not
ANAND CHANDRA  Nil 04.10.22. Score not generated
Generated
in the report on 10.11.2022
DEVARAJAN CHATTANATHAN 796 10.11.2022 Nil -
MARGAPURI PRASANNA RAO 790 10.11.2022 Nil -
 Note –
 NA - CIBIL Rank not available.
 Individual CIBIL of on Promoter Directors is extracted.
 Other Due Diligence:
Due Diligence Date of Check Remarks
Aryadhan Financial Solutions Private 11.11.2022 Reported Standard by lending banks.
Limited No adverse observation.
Arya Collateral Warehousing 11.11.2022 Reported Standard by lending banks.
Services Private Limited No adverse observation.
CRILC
Aryadhan Foundation For Equitable 11.11.2022
No match found
Agriculture
ARYATECH PLATFORMS 11.11.2022 Reported Standard by lending banks.
PRIVATE LIMITED No adverse observation.
Aryadhan Financial Solutions Private 10.11.2022
No match found
Limited
Arya Collateral Warehousing 10.11.2022 No match found
Services Private Limited
Aryadhan Foundation For Equitable 10.11.2022 No match found
CFR Agriculture
ARYATECH PLATFORMS 10.11.2022 No match found
PRIVATE LIMITED
ANAND CHANDRA 10.11.2022 No match found
DEVARAJAN CHATTANATHAN 10.11.2022 No match found
MARGAPURI PRASANNA RAO 10.11.2022 No match found
MCA Site Verification of Directors & 11.11.2022 10.11.2022

Company
Save Risk 11.11.2022 No adverse observations
Strike Off companies 11.11.2022 Active
RBI Defaulter’s List (CIC Suit Filed & Non 10.11.2022
Suit Filed Accounts- Wilful Defaulters ₹ 25 No match found
Lacs & above on CIBIL site)
10.11.2022 There is a change in auditors in
compliance with RBI Circular dated
April 27, 2021 on appointment/ re-
appointment of Auditor.
M/s. BSR & Co LLP was Statutory

Auditor from 2019 to 2021. They
resigned on Nov 25, 2021 to comply
with RBI Circular.
Change of Statutory Auditor
M/s Dass Gupta & Associates were

appointed as Statutory Auditors of the
Company for the Financial Year 2021-
2026 and to hold the office of Statutory
Auditors from the conclusion of this
(5th) Annual General Meeting till
conclusion of 10th Annual General
Meeting of the Company..
10.11.2022 Arya Collateral Warehousing Services

Private Limited is holding company of
Aryadhan Financial Solutions Private
Limited.
Holding & Subsidiary Companies
Aryadhan Foundation For Equitable
Agriculture is subsidiary company to
Aryadhan Financial Solutions Private
Limited.
9. Product Details:
Loan Product Details
Product Details P1 P2 P3 P4
Warehouse
Bill
Product Name Receipt Lease Rental Discounting Top Up loan
Discounting
Funding
Working Working Working
Purpose of Loan Working Capital
Capital Capital Capital
Ticket Size Upto 4 cr Upto 50 lacs Upto 2 cr Upto 3 cr
linked with Lock in period that Arya
Tenor 9 months 9 months 9 months
Collateral has with warehouse owner
ROI Range 10%-15% 12%-15% 10%-15% 9%-12%
Average ROI ~12.50% ~12.43% ~13.50% ~10.50%
Agri
Type of Security Commodity Rent Payments by Arya Collateral Invoices

Security Coverage
(%) 130%-150% 130% 100%
Guarantee
Process Fee 0.80%-1.00% 0.80%-1.00% 0.80%-1.00% 0.25%-1.00%
24% p.a. for the OD Period 24% p.a. for 24% p.a. for
24% p.a. for the OD the OD
Penal the OD Period Period Period
Repayment Single Bullet Single Bullet Single Bullet
frequency Repayment Single Bullet Repayment Repayment Repayment
O/s. as on Aug 31, 389.03 2.25 1.51 0.74
2022 (Rs.in Crores)
PAR >0 (Rs.in
Crores) 11.10 0.00 0.02 0.00
PAR >30(Rs.in
Crores) 3.89 0.00 0.02 0.00
PAR>90 (Rs.in
Crores) 1.07 0.00 0.00 0.00
PAR>180(Rs.in
Crores) 0.95 0.00 0.00 0.00
PAR >0 (%) 2.85% 0.00% 1.09% 0.00%
PAR >30 (%) 1.00% 0.00% 1.09% 0.00%
PAR>90 (%) 0.27% 0.00% 0.00% 0.00%
PAR>180 (%) 0.24% 0.00% 0.00% 0.00%
Rs. 0.17 Crores is lent to Farmer Producer Organizations (FPO). This portfolio has nil overdue at present.
Comment: The company is focusing on warehouse receipt funding being in sync with business of Parent
Company.
Aryadhan Financial Solution has defined policy in place for Sourcing, Credit Appraisal, Operations,
Disbursement, Price Monitoring and collection functions. Brief is covered below:
Sourcing: Sourcing is done broadly through Warehouse Owners, Traders in Mandi, Corporate Clients, Online
Platform (Aryatech Platforms Private Limited). For all cases, Business Development Executives (BDE) are
assigned who do Field Investigation, reference check, KYC Verification and login the case online.
Credit Appraisal: For Ticket size upto Rs. 1 Crore, Only KYC is required for sanction of a case. The case gets
sanctioned in Straight Through Process if CIBIL Report is clean (i.e., no overdue, no written off, no sub-standard
reporting, no suit filed status, etc.). If adverse reporting is found, the case comes to credit for verification. Then
case is sanctioned based on justification/clearance proof provided by the applicant.
(In last year 876 Cases were logged in. Out of this 842 were sanctioned. 546 were sanctioned without any
deviation (in Straight through process) and 296 were sanctioned with deviation. Rejection ratio stood at ~4% last
year. ~65% of the approved cases were through Straight Through Process)
For ticket size above 1 Crore, Bank Statement and Financials are obtained along with KYC. Vintage of 3 years
and Financials of 2 years is verified to ensure EBITA>1%, NCA positive for last year, Total Debt/NCA<12, Total
Debt/TNW<5, etc. Deviation to be approved by any of the directors.
Negative profile of Customers/Commodities/locations are pre-defined for upfront exclusion. Further, category
wise maximum individual limit is defined (e.g., farmers- Rs. 50 lakhs, Agri Enterprises- Rs.200 lakhs, Farm
Producer Organisations- Rs.200 lakhs). The assessment for the borrowers is carried out by Credit, Risk and
Operations group (CROP).
Checking is done for Borrower’s limit expiry date and tracking the same on 15th of every month for the facility
due for expiry in the next month. Renewal processes to be initiated for customers for whom No overdue (overdue
for repayment and margin call) or No frauds reported. In case there is rejection of renewal, the currency extension
is done for a maximum period of 180 days from date of original expiry. The facility is closed post repayment of
loan. During the period of currency extension, no further disbursement is done till the same is approved by

CROP. For borrowers against which liquidation process has been initiated / completed renewal will not be done.
For renewing such facility approval to be taken from GM(FV). If facility is not renewed, then the borrower’s
details are updated in the defaulters list of ARYA/Aryadhan by CROP.
Disbursement: For disbursement, pre-defined process is followed as summarised below:

 The Borrower executes the Loan Borrower Documents as stipulated by Aryadhan
 The documents are sent to the Credit and Operations (CROP) for assessment of the limits
 The limits are assessed, account is opened in eCBF or any other system as approved by the management from
time to time and limit set up is done
 Stock of commodity is deposited in the designated Warehouses and WR /SR is collected.
 The borrower / deposits the WR / SR with the PWH vertical official.
 Price information from the nearby mandis/market yard/ reliable sources (Commodities Control Dot Com or
any other approved source) will be supplied to / collected by the Farm Vertical.
 The stock is insured fully against fire & allied perils and 10% for burglary (NA in CWC/ SWC) to be
ascertained by collecting a copy of the insurance policy or acknowledgement of the premium received by PWCM
vertical.
 Disbursements of the facility amount will be in single or multiple tranches only on depositing stocks at the
Designated Warehouses and fulfilling the pre-disbursement conditions.
 Documents will be received through Process Flow System. Scanned documents to be received for
disbursement purpose.
 Disbursement will be done by NEFT/RTGS transfer into the account / transfer into the borrower account
through Aryadhan. (Processing fee is collected at the time of disbursement, i.e., disbursement is made net off
processing fee.
Disbursement is made maintaining sanctioned LTV. For disbursement limit assessment valuation of the
commodity is carried out. The value of commodities as security shall be the lower of the following:
 Value of goods as reflected in the warehouse / stock receipt.
 Value of goods based on the average / modal prices prevailing on the previous working day of date of
disbursement, from the nearest mandi.
Price Monitoring:
 CROP monitors the commodity price on a weekly basis. The published daily prices of nearest Agriculture
Produce Marketing Committee (APMC) / Market yard / Price data from reliable sources / Agents appointed by
the Bank is used as benchmark. Price collected from one location from any one of the above source and the same
is considered.
 Margin is triggered by the ARYA at the breach of trigger margin as specified by CROP. i.e. when the total
outstanding (loan principal + interest charge for total no. of months) as a percentage of the market value of the
security exceeds (100-trigger margin%)
 The borrower is provided a response time of 10 working days from issue of Margin deficiency intimation
letter to repay part of the outstanding amount.
 ARYA shall report to Aryadhan within 10 working days from issue of Margin deficiency intimation letter,
about the repayment made by the borrower.
 In case the borrower does not respond to the margin call within 10 working days, then ARYA arrange
Aryadhan to send a Margin call notice to the borrower. The borrower has to resolve the margin call by depositing
cash only, otherwise Aryadhan shall initiate the process of liquidation stock at the end of the 15 working day after
the issue of Margin deficiency intimation letter. Local traders / processors are contacted for liquidation of stocks.
ARYA PWCM Vertical will assist the NBFC in liquidation of stocks (for liquidation, auction is done where
minimum 2 bids must be received.)
 In case the prices go up within the margin call period of 10 days the Aryadhan sets off the margin call against
the price rise.
 In cases where the variety wise prices are not available, the lowest price for the commodity in the respective
mandi would be considered for margin monitoring.
 In cases where a commodity is not traded in a particular mandi on a specific day, the following prices are
considered in the given order of priority:
I.The prices from a nearby mandi for the commodity
II.The prices from a mandi within the state for the commodity
III.The prices from a mandi from the nearby state for the commodity

 The preference for the considering the price detail for disbursement and margin monitoring from the given
source in the following order of priority.
I.Commodities Control Dot com/ Any other reliable source
II.NCDEX / MCX
III.On Mandy’s letter head 4. Published price data
Portfolio Monitoring
 Monthly reports on the portfolio performance are submitted to CROP Head
 Random field audits are conducted by IA headed by GM of ARYA / Aryadhan or by Third party audit
 End use declaration will be taken from the borrowers
 Head IA reports irregularities in the portfolio created under the Program to MD on a monthly basis.
 Overdue: - Any amount, which is not paid on the due date. The program will be reviewed within 15 days, if at
any point of time, total outstanding in the accounts with overdue exceeds 5% of the total outstanding under the
program
 Default: - Non-servicing of interest / principal for 60 days from due date. The performance of the portfolio
would be reviewed at the sanctioning committee along with the assessment criteria, if at any point of time the
total outstanding in default accounts exceed 2% of the total outstanding under the program and all fresh sanctions
would be suspended, pending such review.
Insurance
The stock of commodity lien to NBFC will be insured to the full value and endorsed in favor of Aryadhan by the
PWCM / borrower. The insurance would be assigned to Aryadhan before the disbursal of the loan for warehouses
as decided. The PWCM Vertical has to ensure that the Private Licensed warehouses have taken requisite
insurance as required. The stock to be insured against fire for full value and theft and allied perils as per market
practice. CROP to monitor the same and prepare MIS on a weekly basis for the same
Repayment:
The borrower would do fund transfer in Aryadhan’s Bank account and provide receipt of NEFT/RTGS to PWCM
vertical; fax/scan the image of receipt along with release request to the ARYA. All Releases will happen only on
realisation of clear fund in account. CROP will confirm receiving of fund by viewing rights of Aryadhan account.
Reminder Call Letter

CROP follows the practice of sending reminder call letter on weekly basis to FV (Farm Vertical)
Reminder Call Letter 1 Before 30 days of Loan Due Date

Reminder Call Letter 2 Before 15 days of Loan Due Date
OVERDUE
The overdue will be tracked on a weekly basis and MIS for the same will be generated
CROP CROP Preparation and updating of

overdue list for warehouse receipts
before 30 days of becoming overdue
CROP Mail intimation for overdue of
Warehouse receipt to FV addressing
borrower
FV FV Informing borrower to resolve the
overdue
FV FV If overdues are not resolved within
30 days. The cases to be taken forward
for Liquidation. Recall notice must be
given before sale
Liquidation:

In events of default by borrowers, the stock liquidation process is initiated by providing relevant notices to the
borrowers. At the time of default, a notice is sent to the borrower by Aryadhan through ARYA granting him 7-10
days to repay the loan failing which the stocks will be liquidated. If the first notice is dishonoured, then Aryadhan
will proceed for selling the produce after intimating the borrower.
The loss in these transactions is defined as the difference between the total outstanding due from the borrower
(Inclusive of all interest and any dues including penal interest) and that of the recovery amount.
Fraud Reporting process

ARYA Business / FV/Aryadhan will make the initial efforts for recovery of dues. A crack team for each case
would be working to ensure recovery of dues. The crack team would normally be formed for fraud amount of Rs.
10.0 lakh and above. However, it may also be formed for smaller frauds. The crack team would constitute
representative from FV, PWCM & CROP. The team would be led by Business / FV. The responsibilities of teams
are spelt out as under:
➢ Team Leader: Will be responsible for driving recovery efforts/negotiations/legal action/police
action/compliance with Fraud Monitoring Committee (FVC) recommendations. The team leader would be
supported by PWCM, CROP and FV team.
➢ CROP: Will support team leader and be responsible for provide all data/document support including
➢ PWCM: Will support team for stock management (storage/transfer/grading) etc.


Top 20 Borrowers as on Sep 30, 2022 (Rs.in Crores)
Nature of
Name of Tenure Classification
Sanctioned Outstanding debt Location
Borrower (Months) (STD/SUB/NPA)
sanctioned
ARYATECH
Gautam
PLATFORMS 29.
30.00 WRF 9 Buddha STD
PRIVATE 82
Nagar
LIMITED
M/S
8.
GEETANJALI 10.00 WRF 9 Guna STD
86
SPICES
M/S PATIDAR 6.
8.00 WRF 9 Pratapghar STD
BROTHERS 97
ZARAH 6.
10.00 WRF 9 Kolkata STD
ENTERPRISE 00
Amit Agro 5.
10.00 WRF 9 Chhindwara STD
Agencies 94
KSL
5.
RESOURCES 9.00 WRF 9 Patna STD
88
PVT LTD
R.K AGRO 5.
10.00 WRF 9 Gwalior STD
INDUSTRIES 39
5.
S Butoliya 5.50 WRF 9 Chandrapur STD
30
Kishan Sewa 5.
10.00 WRF 6 Patna STD
Kendra 26
DEEPAK
5.
FERTILIZER 8.50 WRF 6 Katihar STD
17
CENTRE
Vishvesh 4.
5.00 WRF 9 Guna STD
Enterprises 32

BAGTAWAR
3.
MAL GOVIND 4.00 WRF 9 Jodhpur STD
98
RAM
MAA
3.
GAYATRI 4.00 WRF 9 Saharsa STD
94
TRADERS
M/S Shree
3.
Shanker Ji Rice 4.00 WRF 9 Sangrur STD
32
and Gen Mills
PERFECT 3.
10.00 WRF 9 Jind STD
POULTRIES 32
M/S KRISHNA 3.
3.50 WRF 9 Saharsa STD
SALES 32
SHREE
CHARBHUJA 3.
4.00 WRF 9 Pratapghar STD
TRADING 21
COMPANY
Kashi Trading 3. Kanpur
4.00 WRF 9 STD
Co. 10 Nagar
M/S Asopa 2.
4.00 WRF 9 Vidisha STD
Bandhu 95
Chourasiya 2.
3.30 WRF 9 Chhindwara STD
Traders 89
118.
Total 156.80
95
Comment: 33.48%% of the total AUM of Rs. 355.28 Crores is out of lending to top 20 borrowers as at Sep-22.
Aryatech Platforms Private Limited is group company of AFSPL. It is given working capital limit of Rs. 30
Crores for a tenor of 12 months (repayable on demand). Source of income of Aryatech Platform is Collaboration
fee, Storage & Handing Fee and Deferred Charges.
10.Borrowing Profile:
As on Aug 31, 2022, total borrowing stood at Rs. 295.68 Crores as detailed below
Lender Type Facility O/s. Borrowing %
OD 0.00 0.00%
Bank Term
40.38 13.66%
Loan
Bank Total 40.38 13.66%
Term
136.97 46.32%
Loan
NBFC/FI/Others NCD 95.86 32.42%
ECB 22.47 7.60%
NBFC/FI/Others Total 255.30 86.34%
Grand Total 295.68 100.00%
Comment: Around 86% borrowing is from NBFC/FI
Lender Wise exposure excluding at the end of Aug-22 (Rs.in Crores)

Lender O/s O/s %
WintWealth 48.26 16.32%
MAS Financial Services Ltd 39.17 13.25%
Northern Arc 36.48 12.34%

Vivriti Capital 22.50 7.61%

responsAbility (ECB) 22.47 7.60%
Arya Collateral Warehousing (responsAbility) 22.00 7.44%
Vivriti Asset Management 22.00 7.44%
Kisetsu Saison Finance (India) Private Limited 15.00 5.07%
OXYZO Financial Services Private Limited 15.00 5.07%
DCB Bank Ltd. 13.64 4.61%
ICICI Bank Ltd. 11.25 3.80%
Utkarsh Bank 11.25 3.80%
Tata Capital 4.67 1.58%
Nabkisan Finance Ltd. 4.16 1.41%
Secured non-convertible debentures 3.60 1.22%
ESAF Small Finance Bank 3.33 1.13%
HSBC Bank 0.92 0.31%
100.00
Grand Total 295.68 %
11. Operational Snapshot:

Mar- Jun- Sep-
Particulars FY18 FY19 FY20 FY21
22 22 22
No. of Members NA NA NA NA NA NA NA
No. of Branches 1 1 1 1 1 1 1
No. of Districts 18 31 64 87 107 130
No. of States 7 10 10 13 15 14 15
No. of Clients 126 195 266 438 571 826 688
Total staff 4 35 54 51 66 68 94
Disbursement made during the period (Rs.in
20.35 44.98 97.56 280.86 450.50 376.69 434.96
Crore)
No. of disbursement 284 680 1226 2991 4293 3422
Own Portfolio (Rs.in Crore) 20.14 27.11 64.83 168.56 235.45 477.78 348.95
Managed Portfolio (Rs.in Crore) 0.00 0.00 0.00 0.00 5.75 9.66 6.33
Gross Loan Portfolio (Rs.in Crore) 20.14 27.11 64.83 168.56 241.20 487.45 355.28
Comments:
 Aryadhan’s sourcing is done from all the locations where Arya Collateral has warehousing operations.
However, Credit, Risk and operations functions Centrally. Presently, Arya Collateral is operational in 15
States.
 Disbursement was of Rs. 450.50 Crores in FY22. In Q1, FY 23, Disbursement done was Rs.376.69 Crores
(Rs. 434.96 Crores till Sep-22). The targeted disbursement is at Rs. 850 Crores in FY23.
 The company closed FY22 with AUM of Rs.241.20 Crores and targeted at ~Rs. 630 Crores at Mar-23.
 AUM at close of Q1, FY 23 was Rs. 487.45 Crores. However, it reduced to Rs. 393.71 Crores at Aug-22 and
Rs. 355.28 Crores at Sep-22 since, Q2 is off season.
12.Collections Efficiency: (Rs.in Crore)

Overdu Current
Overdu e Current + Overall
Deman Closin
e for receive Current Prepaymen Collectio Overdue Collectio
Mont d for g
previou d Collectio ts during n collectio n
h the overdu
s during n the month Efficienc n Efficienc
month e
month the y Efficienc y
month y
Dec-
3.69 2.66 0.73 1.17 3.11 4.45 44.11% 144.87% 188.60%
19
Jan-
4.45 4.17 2.20 0.55 2.69 5.87 13.12% 107.39% 130.25%
20
Feb-
5.87 2.20 1.05 1.36 3.13 5.67 61.67% 183.36% 251.32%
20
Mar- 1217.28
5.67 0.47 0.98 0.40 4.40 4.77 83.39% 246.74%
20 %
Apr- 4640.76
4.77 0.15 0.40 0.01 6.41 4.50 9.32% 275.41%
20 %
May- 1050.41
4.50 0.68 0.43 0.09 6.61 4.66 13.48% 72.10%
20 %
Jun- 10070.44
4.66 0.10 0.77 0.06 9.59 3.92 59.73% 753.36%
20 %
2340.29
Jul-20 3.92 0.45 0.20 0.21 10.23 3.96 46.41% 66.02%
%
Aug-
3.96 3.04 0.24 2.37 10.14 4.39 78.04% 245.13% 419.62%
20
Sep-
4.39 2.61 0.35 2.29 15.31 0.86 87.89% 242.48% 688.71%
20
Oct- 1875.83
0.86 1.07 0.35 0.55 19.23 1.02 51.50% 88.29%
20 %
Nov-
1.02 5.30 0.15 2.47 12.85 3.70 46.66% 249.99% 292.16%
20
Dec-
3.70 2.37 0.77 2.37 14.35 2.94 99.82% 269.17% 736.46%
20
Jan- 1245.44
2.94 1.74 1.70 1.15 18.85 1.83 65.98% 212.73%
21 %
Feb-
1.83 5.36 1.53 1.87 12.48 3.79 34.94% 215.81% 296.31%
21
Mar-
3.79 9.77 1.85 5.14 10.34 6.57 52.55% 532.61% 177.22%
21
Apr- 1375.28
6.57 1.65 2.91 1.15 18.58 4.15 70.02% 292.15%
21 %
May- 6209.10
4.15 0.44 2.10 0.16 24.88 2.33 36.66% 496.60%
21 %
Jun- 1308.12
2.33 1.86 1.28 0.38 22.72 2.54 20.30% 106.51%
21 %
1579.70
Jul-21 2.54 1.37 1.21 0.90 19.47 1.79 66.01% 179.04%
%
Aug-
1.79 3.12 1.39 1.70 16.71 1.82 54.51% 214.39% 635.46%
21
Sep-
1.82 10.27 0.86 7.02 22.16 4.21 68.32% 709.96% 292.55%
21
Oct-
4.21 14.01 2.35 8.25 35.45 7.61 58.91% 842.21% 328.65%
21
Nov-
7.61 5.50 0.57 4.38 41.81 8.16 79.68% 448.34% 850.58%
21

Dec-
8.16 18.73 5.09 8.99 40.11 12.82 47.99% 926.03% 289.28%
21
Jan-
12.82 15.90 10.29 7.95 19.77 10.48 49.99% 859.47% 239.10%
22
Feb- 1013.00
10.48 2.65 5.38 1.46 19.98 6.29 55.16% 349.17%
22 %
Mar-
6.29 3.45 3.48 3.16 22.47 2.48 91.75% 417.23% 844.85%
22
Apr-
2.48 6.16 0.61 1.15 30.33 6.87 18.69% 124.96% 521.21%
22
May- 1087.68
6.87 3.86 5.19 2.49 34.30 3.05 64.62% 383.94%
22 %
Jun- 1409.86
3.05 4.05 1.60 2.45 53.01 3.04 60.64% 284.91%
22 %
Jul-22 3.04 7.44 0.85 2.24 42.23 7.40 30.04% 234.88% 608.95%
Aug-
7.40 9.14 3.48 1.95 64.52 11.11 21.32% 232.88% 765.47%
22
Sep-
11.11 8.47 8.18 3.47 58.96 7.93 40.94% 443.36% 833.68%
22
Comment: Overall collection efficiency is more than 100% due to high prepayments and Bullet Repayments. Pre
Payments increase in off season due to increase in prices.
13.Disbursements Trend: (Rs.in Crores)

Q2,
Q1,
Period FY18 FY19 FY20 FY21 FY22 FY23 till
FY23
Aug
Disbursement 2.55 44.98 97.56 280.86 450.50 376.69 30.05
Note: Month wise disbursements and product wise disbursements are annexed
Comments
 Disbursement was of Rs. 450.50 Crores in FY22. In Q1, FY 23, Disbursement done was Rs.376.69 Crores
(Rs. 406.74 Crores till Aug-22). The targeted disbursement is at Rs. 850 Crores in FY23.
14.Portfolio Distribution and PAR (Rs.in Crores)

State wise distribution of Portfolio and PAR as on Aug 31, 2022
STATE WISE TOTAL O/s % PAR >0 PAR >30 PAR>90 PAR>180
MADHYA PRADESH 99.58 25.29% 0.31% 0.07% 0.01% 0.00%
RAJASTHAN 62.95 15.99% 9.12% 1.60% 0.00% 0.00%
UTTAR PRADESH 60.52 15.37% 0.00% 0.00% 0.00% 0.00%
BIHAR 54.04 13.73% 0.03% 0.03% 0.00% 0.00%
MAHARASHTRA 28.14 7.15% 9.89% 5.17% 0.39% 0.00%
ANDHRA PRADESH 26.47 6.72% 0.00% 0.00% 0.00% 0.00%
HARYANA 22.36 5.68% 4.22% 1.16% 0.00% 0.00%
Others 39.65 0.10 3.33% 2.77% 2.40% 2.40%
TOTAL 393.71 100.00% 2.82% 0.99% 0.27% 0.24%
Comment: Top 5 States contributes ~78% to total AUM as on Aug-22, highest being Madhya Pradesh with ~25%
share. PAR>180 days is Rs.0.95 Crores and is from the State of Gujarat.
Product wise distribution of Portfolio and PAR as on Aug 31, 2022
PRODUCT TOTAL O/s % PAR >0 PAR >30 PAR>90 PAR>180
WRF 389.03 98.81% 2.85% 1.00% 0.27% 0.24%
Bill Discounting 2.25 0.57% 0.00% 0.00% 0.00% 0.00%
LRD 1.51 0.38% 1.09% 1.09% 0.00% 0.00%

Top Up Loan 0.74 0.19% 0.00% 0.00% 0.00% 0.00%

FPO Funding (Non
0.00%
Commodity) 0.17 0.04% 0.00% 0.00% 0.00%
TOTAL 393.71 100.00% 2.82% 0.99% 0.27% 0.24%
Comment: AFSPL is focusing on its core product Warehouse Receipt Funding with concentration around 99%.
Tenure wise distribution of Portfolio and PAR as on Aug 31, 2022

TOTA
TENURE O/s % PAR >0 PAR >30 PAR>90 PAR>180
L
Upto 6 months 25.63 6.51% 9.08% 6.76% 0.00% 0.00%
6- 12 months 366.85 93.18% 2.39% 0.59% 0.29% 0.26%
More than 12 months 1.22 0.31% 0.00% 0.00% 0.00% 0.00%
100.00
TOTAL 393.71
% 2.82% 0.99% 0.27% 0.24%
Comment: More than 99% of the lending is within a tenure of 12 months.
LTV wise distribution of Portfolio and PAR as on Aug 31, 2022

TOTA
LTV BUCKET O/s % PAR >0 PAR >30 PAR>90 PAR>180
L
Less than 30% 0.13 0.03% 0.00% 0.00% 0.00% 0.00%
>=30% and <50% 0.41 0.11% 12.69% 12.69% 0.00% 0.00%
>=50% and <70% 158.68 40.30% 3.81% 2.23% 0.67% 0.60%
>=70% and <80% 229.40 58.27% 2.18% 0.13% 0.00% 0.00%
>=80% 4.91 1.25% 0.33% 0.33% 0.00% 0.00%
Charge on current assets 0.17 0.04% 0.00% 0.00% 0.00% 0.00%
TOTAL 393.71 100.00% 2.82% 0.99% 0.27% 0.24%
Comment: ~ 99% of the portfolio has LTV within 80%.
ROI wise distribution of Portfolio and PAR as on Aug 31, 2022
TOTA
PAR>180
ROI L O/s % PAR >0 PAR >30 PAR>90
Less than 12% 99.61 25.30% 1.14% 0.26% 0.00% 0.00%
>=12% and <13% 157.91 40.11% 1.72% 1.14% 0.00% 0.00%
>=13% and <14% 101.18 25.70% 6.99% 1.76% 1.06% 0.94%
>=14% and <15% 33.76 8.58% 0.56% 0.22% 0.00% 0.00%
>=15% 1.24 0.32% 0.00% 0.00% 0.00% 0.00%
TOTAL 393.71 100.00% 2.82% 0.99% 0.27% 0.24%
Comment: ~ 75% of the portfolio has ROI greater than 12%.
Loan Ticket Size wise distribution of Portfolio and PAR as on Aug 31, 2022
TOTA
PAR>180
LTS BUCKET L O/s % PAR >0 PAR >30 PAR>90
Upto 5 lakh 41.82 10.62% 1.59% 0.51% 0.23% 0.10%
>5 lakh and <=10 lakh 203.54 51.70% 3.14% 0.73% 0.00% 0.00%
>10 lakh and <=50 lakh 63.18 16.05% 4.06% 2.06% 0.10% 0.00%
>50 lacs and <=1 crore 39.10 9.93% 3.81% 2.33% 2.33% 2.33%
More than 1 crore 46.07 11.70% 0.00% 0.00% 0.00% 0.00%
TOTAL 393.71 100.00% 2.82% 0.99% 0.27% 0.24%
Comment: ~ 62% of the portfolio is within ticket size of Rs. 10 lakhs.

15.Financial Performance & Projections

Standalone Key metrics of AFSPL are as under: Rs.in Crore
Particulars FY19 FY20 FY21 FY 22 Sep-22 FY23 FY24

Aud. Aud. Aud. Aud. Prov Proj. Proj.
Interest & Operating Income 2.80 5.18 12.29 23.35 25.17
58.32 102.44
Processing Fee & Other operating
0.42 0.96 2.80 4.27 3.53
Income
Other Income 0.09 0.36 1.11 4.28 1.44 1.81 3.21
Total Income 3.31 6.50 16.20 31.90 30.14 60.13 105.65
Finance Cost 1.24 3.14 7.62 14.59 16.14 26.13 64.00
Administrative Expenses 0.98 1.91 2.25 3.62 3.67 11.48 10.91
Employee Expenses 1.72 3.71 4.66 7.06 4.61 11.70 13.65
Provisioning/Impairment 0.06 0.45 3.58 1.68 0.32 0.79 0.74
Depreciation 0.04 0.10 0.05 0.08 0.11 0.50 3.60
PBT -0.73 -2.81 -1.96 4.87 5.29 9.52 12.75
Income Tax 0.28 1.05 1.38 2.38 3.19
Deferred Tax 0.02 -0.13
PAT -0.75 -2.81 -2.24 3.95 3.91 7.14 9.56
NW 12.31 51.50 124.26 228.35 232.26 234.14 243.70
Adjusted NW 11.93 50.48 122.56 226.81 230.71 232.45 242.15
Tier II / Sub Debt
Total Debt 18.54 40.91 95.23 97.51 251.34 395.73 679.83
TOL 19.68 43.00 102.21 103.85 263.36 465.86 756.30
Gross Loan Portfolio 27.13 64.87 168.56 241.20 355.28 628.50 903.00
168.5
On Balance Sheet 27.13 64.87 235.45 348.95 541.50 795.50
6
Managed Portfolio 5.75 6.33 87.00 107.50
Cash & Bank 0.03 23.02 29.31 81.06 66.29 81.23 119.33
Investment 20.62 0.06 5.07 0.01 0.01
Total Assets 31.99 94.50 226.47 332.20 495.62 700.00 1000.00
Debt / ANW 1.55 0.81 0.78 0.43 1.09 1.70 2.81
TOL / ANW 1.65 0.85 0.83 0.46 1.14 2.00 3.12
Interest Coverage 0.49 0.28 1.22 1.45 1.35 1.41 1.27
CRAR (%) 39.86% 76.44% 65.80% 89.93% 45.98%
ROA (%) -2.34% -4.44% -1.40% 1.41% 1.89% 1.38% 1.13%
ROE (%) -6.29% -9.00% -2.59% 2.26% 3.42% 3.11% 4.03%
21.30 12.04 11.48
Total Yield (%) 13.49% 17.84% 14.73% 13.80%
% % %
20.64 11.26 10.53
Interest Yield (%) 11.40% 16.88% 13.41% 13.38%
% % %
19.90 12.22
OPEX(%) 5.92% 5.21% 5.55% 5.33% 3.21%
% %
10.56 11.19
COF (%) 6.69% 15.14% 18.51% 10.53% 11.90%
% %
72.25 60.15 73.99 102.52 107.56 120.00 118.31
OSS (%)
% % % % % % %
Gross NPA (%) 0.55% 0.31% 0.00% 0.41% 0.27%
NET NPA (%) 0.48% 0.28% 0.00% 0.00% 0.00%
 Company has achieved Interest & PF Income of ₹27.62 Crores in FY22 vis-à-vis ₹15.09 Crore of FY21.
Interest & PF Income for the H1, FY23 was ₹28.70 Crores

 The company has achieved positive PAT for the first time in FY22. PAT for the FY 22 is at ₹3.95
Crores. The company was in losses till FY 21 due to initial years of operation.
 AUM of the company grew by ~34% in FY22 over FY21. The company is projected to achieve Own
AUM of ~ Rs.542 Crores by end of FY23. The company is at AUM of Rs.393.71 Crores. For
achievement of targeted AUM, company has projected disbursement of Rs.850 Crores in FY23.
 Adjusted Leverage is at 0.46x as on Mar. 31, 2022 against 0.83x as on Mar 31. 2021. The same is on
account of infusion of fresh capital of Rs.100 Crores by Parent Company. Leverage increased to 1.14x at
the end of Sep-22 on account of increase in Debt with no fresh capital infusion.
 At end of Sep-22, if we see weighted average Yield, it is ~12.51% excluding processing fee & other
operating income and ~13.90% including Processing Fee and Other operating income. And Weighted
Average Cost of Funds is ~11.30% excluding processing fee and ~12% including processing fee paid to
the lenders.
 AFSPL has restructured one case of Invoice discounting in FY21 with outstanding of Rs.3.60 Crores. The
limit was unsecured. As on date, the amount is fully written off.
 The company has healthy pipeline of loan proposals of Rs.122 Crores with various lenders.
 Key Terms of recent sanctions availed by Aryadhan:
Guarant
Sanctio O/s as
Sanct Book Cash ee Tenure
n on R
Lenders Facility ion debt Collat (PG/CG) in
Amoun 31.08.2 OI
Date % eral Specify months
t 2
Names
CG of
Overdr 02- 120% 12
20.00 Arya 8.8
HSBC Bank aft+WC 05- 15.00 0.89 book (Annual
% Collatera 0%
DL 2022 debts Review)
l
CG of
18- 110% 11.
Term Arya
Vivriti Capital 05- 30.00 22.50 book Nil 60 12
Loan Collatera
2022 debts %
l
CG of
09- 125% 11.
Vivriti Asset Arya
NCD 05- 22.00 22.00 book Nil 60 34
Management Collatera
2022 debts %
l
CG of
16- 125% 10.
Arya
WintWealth NCD 05- 20.00 16.01 book Nil 20 15
Collatera
2022 debts %
l
CG of
27- 110% 11.
Term Arya
Utkarsh Bank 05- 15.00 11.25 book 5.00% 25 12
Loan Collatera
2022 debts %
l
CG of
MAS Financial 31- 110% 11.
Term Arya
Services Ltd.(TL-29 05- 15.00 12.50 book 5.00% 90 12
Loan Collatera
to 31) 2022 debts %
l
CG of
OXYZO Financial 23- 110% 11.
Term Arya
Services Private 06- 15.00 15.00 book Nil 40 12
Loan Collatera
Limited 2022 debts %
l
CG of
Kisetsu Saison 14- 115% 11.
Term Arya
Finance (India) 06- 15.00 15.00 book Nil 40 9
Loan Collatera
Private Limited 2022 debts %
l

15.1 NPA details: Rs.in Crore

31.3.2019 31.03.2020 31.03.2021 31.03.2022 30.06.2022 30.09.2022
Audited Audited Audited Audited Prov. Prov.
Gross NPAs 0.15 0.20 0.00 0.95 0.95 0.95
Provision for
0.01 0.02 0.00 0.95 0.95 0.95
NPAs
Net NPAs 0.13 0.18 0.00 0.00 0.00 0.00
Gross
27.25 64.83 168.55 230.22 477.78 357.38
Advances
Gross NPAs /
0.55% 0.31% 0.00% 0.41% 0.20% 0.27%
Gross Advances
Net Advances 27.24 64.81 168.55 229.27 476.83 356.43
Net NPAs / Net
0.48% 0.28% 0.00% 0.00% 0.00% 0.00%
Advances
Loan Write off 0.00 0.00 3.67 0.52 0.00 0.00
Comments:
There was a single case of fraud/ theft against the company in Q1 of FY 22 amounting to Rs.95 lakhs where
Stock was moved out with connivance of an employee and a borrower from the State of Gujarat (provisioned
@100%). The matter is under investigation by Police. Based on the outcome of the investigation, insurance claim
shall be filed. Aryadhan is duly covered by insurance coverage on account of theft, burglary and employee fraud
(fidelity insurance). At present, this is the only case under NPA. Whole outstanding of Rs.0.95 Crores is
provisioned for.
There was an incident of Fire in FY22 where stock worth Rs. 0.62 Crores was burnt where recovery on sale was
around Rs. 0.08 Crores and remaining Rs. 0.52 Crores is written off as mentioned in the table above. The
company has filed a claim with the insurance company and on settlement of the same income shall be booked
accordingly.

15.2 Cash Flow Statement: (Rs.in Crores)

Apr-22 May-22 Jun-22 Jul-22 Aug-22
Particulars- ₹ Crore
Actual Actual Actual Actual Actual
Opening Cash in Hand/Bank 86.22 102.52 74.53 61.46 68.61
Borrowing/Securitization 142.5 88.15 45 0.89 -
Equity - -
- - -
Collections 33.52 43.31 58.49 44.17 70.75
Redemption of MF/FD - -
- - -
Any other Receivable - -
- - -
Investment by Holding Company - -
- - -
Total Cash/Receivables 176.02 131.46 103.49 45.06 70.75
Less: Payables
Committed Disbursements - -
- - -
Fresh disbursements 135.61 147.51 92.03 19.16 10.9
Borrowings -Repayments towards TL/CC/ICD's 22.97 10.52 20.25 17.42 20.64
Borrowings-Repayments Towards Securtization-DA/PTC's - -
- - -
Borrowing -Repayments towards NCD's and Capital Market Instruments - -
- - -
Operating Costs Payment 1.14 1.4 1.28 1.33 1.38
Repayment to Holding - -
- - -
Investment in MF/FD - -
- - -
Any other expenses 3 -
- - -
Total Payables 159.72 159.44 116.56 37.91 32.93
Closing cash in hand/bank 102.52 74.53 61.46 68.61 106.44
Comment: The company has cash & bank balance of Rs. 106.44 at the end of August 2022. Lien marked FDs are excluded for drawing cash flow.


15.3 ALM as on Sep 30, 2022: Rs.in Crores

Over
15 to
one Over two Over 3 Over 6 Over 1 Over 3
30/31
0 to 7 8 to 14 month months months months year and years and Over 5
Particulars days Total
days days and and upto and upto and upto upto 3 upto 5 years
(One
upto 2 3 months 6 months 1 year years years
month)
months
A. OUTFLOWS
1.Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.95 31.95
2.Reserves & Surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 200.31 200.31
3.Gifts, Grants, Donations &
Benefactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.Bonds & Notes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.Deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6.Borrowings 4.29 0.28 10.25 19.66 22.82 72.01 55.04 44.52 22.47 0.00 251.34
7.Current Liabilities &
Provisions 1.05 0.05 0.35 0.69 1.10 3.12 3.33 0.08 0.00 1.52 11.29
8.Statutory Dues 0.09 0.00 0.64 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.73
9.Unclaimed Deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.Any Other Unclaimed
Amount 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11.Debt Service Realisation
Account 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12.Other Outflows 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
13.Outflows On Account of
Off Balance Sheet (OBS)
Exposure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A. TOTAL OUTFLOWS
(A)
(Sum of 1 to 13) 5.43 0.33 11.24 20.35 23.91 75.13 58.37 44.60 22.47 233.78 495.62
A1. Cumulative Outflows 5.43 5.76 17.00 37.35 61.26 136.40 194.77 239.37 261.84 495.62 495.62
B. INFLOWS
1. Cash (In 1 to 30/31 day
time-bucket) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Remittance in Transit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Balances With Banks 14.28 10.00 20.00 16.01 3.00 26.04 1.88 6.18 0.00 0.00 97.39
4.Investments (Net of
Provisions) 0.00 0.00 0.00 0.00 0.00 15.06 0.00 0.00 0.00 0.01 15.07
5.Advances (Performing) 10.29 1.36 5.42 19.72 50.31 232.09 52.08 1.20 0.00 0.00 372.47
6.Non-Performing Loans (Net
of Provisions) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.95 0.95
7. Inflows From Assets On
Lease 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8. Fixed Assets (Excluding
Assets On Lease) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.83 0.83
9. Other Assets : 0.01 0.00 0.78 0.33 0.32 1.50 5.84 0.00 0.04 0.07 8.91
10.Security Finance
Transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11.Inflows On Account of Off 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Balance Sheet (OBS)
Exposure
B. TOTAL INFLOWS (B)
(Sum of 1 to 11) 24.58 11.36 26.19 36.06 53.63 274.70 59.80 7.38 0.04 1.87 495.62
C. Mismatch (B - A) 19.15 11.03 14.95 15.71 29.72 199.56 1.42 -37.22 -22.43 -231.91 0.00
D. Cumulative Mismatch 19.15 30.18 45.14 60.84 90.56 290.13 291.55 254.33 231.91 0.00 0.00
Comment: There is no negative cumulative mismatch in any of the buckets.

15.4 Standalone Key metrics of Arya Collateral Warehousing Service Private Limited are as under:
Rs.in Crores
Particulars FY19 FY20 FY21 FY 22 Q1 FY 23
Aud. Aud. Aud. Aud UnAud.

Revenue 88.09 123.84 181.91 166.80 58.17
Other Income 0.43 0.64 3.88 5.13 1.56
Total Income 88.52 124.48 185.79 171.93 59.73
Purchases 18.11 22.87 56.94 1.06 0.00
Finance Cost 1.73 0.64 4.19 4.28 0.79
Administrative
3.16 2.61 4.03
Expenses 4.94 0.72
Employee Expenses 16.15 20.61 28.74 36.03 12.03
Cost of Services 43.12 70.01 88.92 120.22 40.06
Depreciation 0.41 0.93 1.16 1.43 0.28
PBT 5.84 6.81 1.81 3.97 5.85
Current Tax 2.10 2.14 1.06 1.45 1.80
Deferred Tax -0.25 -0.14 -0.43 -0.38
PAT 3.99 4.81 1.18 2.90 4.05
NW 27.81 81.61 164.00 456.96 461.00
Adjusted NW 20.31 25.07 9.03 126.64 130.69
Total Debt 9.29 49.76 23.40 30.24
TOL 13.99 21.05 67.36 52.37 65.66
Cash & Bank 0.59 4.36 3.14 72.57 129.87
Investment 6.72 55.81 153.81 328.81 328.81
Total Assets 41.80 102.66 231.36 509.33 526.66
Debt / ANW 0.00 0.37 5.51 0.18 0.23
TOL / ANW 0.69 0.84 7.46 0.41 0.50
Interest Coverage 29.54 122.48 22.93 30.35 59.47
Comments:
Revenue: On an average Arya Collateral receives Storage income of Rs.70 per tonne per month for the
commodities it stores. Other than this, Arya Collateral receives fee as collateral managers from lenders. Arya
Collateral receives 1% of outstanding from Aryadhan Solutions for collateral management under transfer pricing
mechanism.
Capital: Arya Collateral’s Networth is Rs.461 Crores and Adjusted Networth is Rs.130.69 as at Jun-22. The
company is successful in inviting regular fund infusions year on year from willing investors. In Jan 2022, Arya
Collateral raised capital of Rs.165.38 Crores (Equity-Rs. 0.45 Crore & Preference- Rs. 164.93 Crores). Equity
was raised at premium of Rs.1714 per share where nominal value per share is Rs. 100. Preference Capital (CCPS)
was raised at premium of Rs.40834.64 per share where nominal value per share is Rs.100.
In FY23, Arya has planned to have another equity round within and expecting infusion of $100 million in Q1 of
FY24. Out of this $50 million is planned to be invested in Aryadhan Financial Solution Private Limited.
Warehousing: Arya has taken all warehouses on lease only. It enters into 11 months’ lease.
Operational Metrics
Arya
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Collateral

Storage Vol
12,13,1 16,70,8 18,00,7 17,22,9 18,61,4 22,00,4 18,68,2 16,48,9 13,51,1
(MT)
46 08 15 57 88 89 21 83 92
Storage No. of
Clients 448 685 1,106 1,229 2,013 2,241 1,914 1,762 1,833
Finance Stock 6,72,89 6,65,30 6,69,29 11,80,2 15,35,2 17,79,6 14,82,0 14,04,8 13,99,1
1 9 4 61 55 16 99 45 19
Finance
Volume not
5,09,21 4,27,98 4,01,72 8,11,39 11,47,7 11,35,5 8,69,37 7,88,42 9,88,96
part of Storage
6 6 8 1 76 22 0 0 9
Volume
Storage
Warehouses 425 572 633 708 768 892 781 763 701
Collateral
Management
823 820 763 1,086 1,326 1,616 1,270 1,174 1,240
Warehouses
Storage AUM
(in cr) 2,548 3,509 3,782 3,618 3,909 4,621 3,923 3,463 2,838
Finance AUM
(in cr) 1,750 1,730 1,740 3,069 3,992 4,627 3,853 3,653 3,638
16.Benchmark Ratios:
S. Benchmark Ratios Criteria Company’s Actual as on (Sep’22)
No.
1 CRAR Minimum 18% 45.98%
2 TOL / ATNW Maximum 6x 1.14x
3 Net NPA 3% (Max), however given the Nil
current pandemic impact the same
can be relaxed for a reasonable
period on case to case basis.
4 ALM Mismatch Not within 1 year bucket There is no negative cumulative
mismatch in 1 year bucket
5 Share of Banking Exposure Minimum 15% 13.66%*
in overall Resource Profile
of the NBFC
6 Our Exposure / Tangible Net Maximum 20% Existing= 3.78%

Worth Proposed= 8.66%
*August-2022 (Deviation is sought for)
Parameter Actual Justification for Deviation Approving

Position Authority
Minimum Share of 13.66% 1. The company’s leverage is 1.09x at the end of Sep-22 SMCC
Banking Exposure 2. Company’s utilisation level is only Rs.0.95 Crores out of
sanctioned OD Limits of Rs. 45 Crores from Banks due to off
season.

17.RAROC & Pricing Matrix:

RAROC
Exter
nal
Cre Total
Ratin Risk Mini
dit Cost=
g (in CR Wt Regula mum
Cos Cos Risk Cap CoF+CRR
case Proposed R Adjust Expe tory Risk
t of Op t Weig ital &
of Exposure & ed cted Capital Base
Fu ex (E hted Cos SLR+Opex
multi (In ₹) SL Expos RoE Requir d
nds CL Asset t +Credit
ple R ure (In ement Prici
Pro Cost+Capi
lower ₹) ng
v) tal Cost
applic
able)
CRISI
L
5.9 1.0 1.0 1.0 100.0 112,50 15.00 2.25 11.25
BBB- 112,500,000 15.00% 11.25%
5% 0% 0% 5% 0% 0,000 % % %
(Positi
ve)
Pricing Matrix
Internal Secured Assets Unsecured Loans
External Rating PD*LGD
grading Backed Loan
AAA 1 0.10% 9.97% 10.47%
AA 2 0.15% 10.02% 10.52%
A 3 0.30% 10.17% 10.67%
BBB 4 1.05% 10.92% 11.42%
18.Statutory compliance on Interest Rate
1 Whether ROI offered is Fixed or Floating Floating

2 Rate of Interest proposed for current loan 11.86%
3 Fixed Rate of Interest Not Applicable
3 Fixed Rate of Interest - One year MCLR Not Applicable
Whether ROI offered > One year MCLR
4 No
[Fixed ROI offered cannot be below 1 yr MCLR]
5 Floating Rate of Interest Applicable
Whether floating ROI Linked with External No. Linked with Internal Benchmark (i.e., One Year
6
Benchmark MCLR)
7 Reset frequency – Quarterly No. Reset frequency is yearly
19.Risk Review
19.1 Key risks and its mitigates
# Description of Key Risk Mitigants provided by Business
1 AFSPL was loss making in last three financial year

and made marginal profit in FY22
The company has achieved positive PAT FY22. PAT
AFSPL made initial losses in first three financial year for the FY 22 is at ₹3.95 Crores. The company was in
due to higher operational expenses. The marginal profit losses till FY 21 due to initial years of operation
was registered based on March’22 Audited based on
stabilizing operational expenses and lower credit cost In H1 of CFY also the company has achieved PAT of
but as the track record of AFSPL is in a nascent stage INR 3.91 Crores. In FY 21 it became profitable if we
keeping operational expenses & credit cost under check remove provisioning (of Rs 3.50+ crore) of 1 old case.

will be key to consistent profitability. In FY23, Arya has planned to have another equity
round within and expecting infusion of $100 million in
In addition, with the increase in gearing the interest cost Q1 of FY24. Out of this $50 million is planned to be
will also put pressure on the profitability in short to invested in Aryadhan Financial Solution Private
medium term. Limited.
Arya Collateral profitability is also marginal as per At end of Sep-22, weighted average Yield, it is 12.51%
financials. excluding processing fee & other operating income and
13.90% including Processing Fee and Other operating
income. Weighted Average Cost of Funds is 11.30%
excluding processing fee and 12% including processing
fee paid to the lenders.
Cost Funds is treated as nil for the Equity Capital
Invested in the company by Promoters. Hence,
Disbursement of this fund has Interest Yield without
any Interest Cost.
Opex is around 3.5% in FY22, and it is 3.15% for

FY23 till October, 2022.
As far as cost of debt is concerned, it will go down
further, rather than go up as company is expecting
rating upgrade and with audited balance sheet of FY22
with profits, it is expecting significant lines from PSU
banks.
Margin of the company (Arya Collateral) is increasing
with the vintage and scale of operation
PAT margin was 0.65% for FY 21, 1.74% for FY 22
and it 6.96% for quarter ended on June FY 22- 23.
Business Structure of AFSPL is highly dependent on

Arya Collateral (Group Concentration)
AFSPL is a 100% subsidiary of Arya Collateral.
AFSPL business (WRF) is majorly sourced by Arya Aryadhan financing on commodities stored in
Collateral which is Collateral Manager & in this case warehouses under the control of Arya Collateral. Since
the parent of AFSPL. The quality check and audit is both the companies are under the same management
also done by officials in the parent organization. The control. For inter group transactions there is transfer
Risk which is to be highlighted is the complete pricing agreement through which cost of services, etc.
dependence on parent to manage the critical operations distributed.
of sourcing business & quality check on commodities.
In case of any dispute or fraud there is no recourse than Aryadhan is duly covered by insurance coverage on
to book the same in expense as the benefit of diversified account of theft, burglary and employee fraud (fidelity
Collateral Manager & Business Sourcing structure will insurance).
not be there in the current scheme of things.
3 Low Business Vintage Though AFSPL did not had significant vintage, but
parent company is doing similar business from last 10
AFSPL major portfolio is built in last two years only. years and facilitating loans for banks. In FY22, parent
Thus, the ability to tide over the changing cycles is company has facilitated loans worth INR 5000 plus
untested and will be key risk in short to medium term. crore. The management team of company has
significant experience in this field.
The company will benefit from the operational linkages

and synergies with its parent and maintain its healthy
Capitalisation metrics over the medium term.
4 Bank share in Total Borrowings is on a lower side Company has posted profit in FY 2022 and Q1 of CFY,
leading to increase Cost of Fund also the Company is expecting rating upgrade this year
funding from Banks will increase.

The latest resource profile numbers shared by AFSPL

exhibits that Bank share to total resource is ~ 14% Bank has already tie up for co-lending arrangement and
which is on a lower side and only with the increase of BC partnership with several banks.
this percentage share the cost of fund for AFSPL will
reduce leading to improved Interest Margin numbers. Additionally, term loan line from these banks and few
public sectors bank is also expected.
5 High share of exposure of Top 20 Advances NBFC nature of product is not pure retail individual
loans. These are primarily business loans. Further, all
The Top 20 exposure as on September 30, 2022 is ~ loans are secured with security margin of around 140%
33% of Total advances. This level of exposure of loan value.
percentage is on a higher side and AFSPL needs to Further, the Company follows strong credit appraisal
provide strategy on high ticket advances and needs to methodology. For ticket size above 1 Crore, they will
bring this high exposure concentration down to a assess the case basis Bank Statement and Financials.
reasonable level. Vintage of 3 years and Financials of 2 years is verified
to ensure EBITA>1%, NCA positive for last year, Total
Debt/NCA<12, Total Debt/TNW<5, etc. Deviation to
be approved by any of the directors.
6 Inability to liquidate commodities in timely manner The Company has already displayed ability to liquidate
stock in past and successfully recovered loans. There
The structure is set up to liquidate commodities post are no sticky loans in portfolio. PAR 90 is 0.27% as on
borrower not providing margin requirements. However, August 22. Further, group also provide trade facilitation
the effectiveness of the liquidating mechanism needs to services and connected to various value chain players
be ascertained as any ability will result in pressure on on PAN India basis and runs a digital platform for trade
cash flows for AFSPL. facilitation along with auction facility also.
7 Failure in diversification from current product Company does not intend to diversify and stick to core
product which is backed by agri commodities. There
AFSPL has four products in their product mix but due to will be few variants for the product but primarily loan
bad asset quality in other products and inability to grow will be given against security of agriculture produce
as per plan the entire focus is on WRF product which only.
comprises of ~99% of Total AUM as on date.
8 Higher Commodity Prices leading to slow growth The Company has already disbursed around Rs. 407.00
crore till august 2022, Q2 being off season so prices of
In the external rating rationale and based on the type of the commodities remain high and not prefer to store by
operations of Arya Collateral on whose structure traders of processors or farmers, they prefer to sale
Aryadhan business is dependent the high commodity rather than store in said period.
prices leads to low business growth for AFSPL in FY22
to the tune of 35% with triple digit growth in earlier Earlier there was uncertainty so borrowers have not
period. stored adequately but now there is clarity on
commodity outlook and strong business growth has
been witnessed.
NBFC Compliance Checklist as per ALCO approval:

# Description Reverts from Business Team
1 Bank may avoid financing to the NBFC where there is doubt As per the best of our knowledge and visits done
on end use of funds along with credit team, we could not find any misuse
of funds borrowed for on lending. In addition, we
also use to obtain end use certificate within the
specified utilization time with tagged receivable list
of clients certified by an external Chartered
Accountant (as per the sanctioned terms and
conditions). Apart from this we also take book debts
certificate from management/CA certified by on
quarterly basis.

2 Bank may avoid financing to any NBFC where part of the The Company uses the funds for the purpose
investments are not related to their regular business area. It specified in sanction letter. Hence, there is no
provides some signal of diversion of fund diversion of funds known to us as per our records
checked through balance sheet of the company.
3 Bank needs to be more careful where structure of the NBFC As per the best of our knowledge the Company has
is more complex in terms of group company or related not a complex structure.
company
4 Bank needs to be more careful in financing to any NBFC with The Company is in comfortable position. Current
rating of ‘BBB-‘ as further small stress in the company/sector rating of the Company is BBB- from CRISIL,
may lead to rating downgrade to non-investment grade rating. however company has sufficient capital base,
experienced senior management and strong board to
manage the growth. Company is also expecting INR
50 Crores of equity round by CFY end or by Q1 of
FY-24.
5 Bank need to be more watchful if any NBFC is reporting No such case, as the Company is growing carefully
abnormal growth as same may result into lapse in processes, without any process lapse and compromising in asset
compromising in asset quality and other audit related issues. quality. As during our pre-sanctioning visit with
Credit team no such instances were found.
6 NBFCs with no Asset Liability mismatch or positive Asset As per the data provided by the company, the
Liability mismatch for the various time buckets should be Company is in comfortable ALM position with no
preferred from financing point of view. negative cumulative mismatch in any of the buckets.
7 Bank should prefer NBFCs where share of Bank funding is As on 31st August 2022 the company has total
higher than share of financing from NBFCs. As in the current borrowing outstanding of ₹295.68 crore out of which
liquidity crunch, many of the corporate lending NBFCs will borrowing from Bank is Rs. 40.38 crore i.e., 13.66%
significantly slow down their funding to relatively smaller of total borrowing and rest outstanding through
NBFCs. Hence NBFCs dependent on other NBFCs for NBFC and FIs.
financing may lead to not able to renew the facility.
19.2 Risk Rating
Name of Client Aryadhan Financial Solutions Private Limited (AFSPL)

External Rating CRISIL BBB- (Positive)
Industry and Asset Class Risk 88%
Market Positioning 42%
Earning Quality 63%
Asset Quality 64%
Capital Strength 81%
Liquidity 58%
Management & Others 65%
Overall Score 65%
Explanation Fair
Nature of Case Moderate Safety
Internal Rating USFB 4
19.3 Conclusion:
Aryadhan Financial Solutions Private Limited (AFSPL) is existing client of the Bank since May 2022 with current
outstanding of ~ ₹ 9.00cr. The company has not defaulted on any of its repayment obligation exhibiting excellent

repayment conduct. AFSPL provides financing solutions to farmers, FPOs, aggregators and small traders. AFSPL
is a wholly owned subsidiary of Arya Collateral which has been in warehousing business for more than 20 years
and as a result management has gathered substantial knowledge of handling agriculture commodities. The major
strength of AFSPL is garnered from the expertise of parent Arya Collateral from equity infusion to Business
Sourcing to critical Credit Appraisal activities. AFSPL has senior management with rich experience in the field of
Agricultural Financing. AFSPL is more than adequately capitalized with CRAR at 89.9% as on March 31, 2022.
The Asset Quality is very comfortable with less than 1% GNPA as on March 31, 2022. AFSPL deals in non-
perishable agricultural produce having shelf life of more than 12 months with average Loan to value (LTV) ratio of
around 70%. Aryadhan does not deal in commodities having volatility in prices. AFSPL has liquidity cover
(assuming nil collections and excluding PTC/DA payments) of 3.8 times for three months. The ALM as on
September 30, 2022 has no negative cumulative mismatch under any of the buckets. The company is externally
rated BBB- Positive from CRISIL and internally rated as USFB 4.
The key risks as highlighted above and given the remarks from the Business Team on the same. Risk management
supports Enhancement under Term Loan facility for ₹11.25cr to AFSPL, keeping the overall exposure (existing +
proposed) up to ₹20 cr subject to following covenants:
 Based on RBI recent instruction of not reckoning External Rating of Rating Agencies if it is not
disclosed, we should also add suitable clause and charge extra interest if the same is not complied by the
Company through ECRAs within an agreeable time-period.
 The overall (WSL + Treasury) NBFC industry exposure at Bank level with this disbursement should
not cross ₹1150 cr.
20.Regulatory Checks
We confirm that
1. As per approved prudential exposure norms in credit policy, the proposed exposure limit to M/s Aryadhan
Financial Solutions Private Limited does not exceed 5% of Capital funds (Tier I +Tier II) or 20% of
eligible Tier I capital as on 31.03.2022
2. The proposed group exposure limit in case of M/s Aryadhan Financial Solutions Private Limited does not
exceed 7.5% of eligible Capital funds (Tier I + Tier II) or 25% of eligible Tier I capital as on
31.03.2022.
3. At least 50% of the loan portfolio of USFB constitutes loan & advances up to ₹25 lakhs
4. The proposed exposure is not an exposure to the promoters, major shareholder, and/or the relatives of the
promoter of our Bank
5. There is no commitment for granting any loan or advance to or on behalf of any of our Directors and/or to
any firm in which any of our Directors is interested as a Partner, Manager, employee and/or any company
(not being a subsidiary or a Sec.25 company) of which any of the Directors of the Bank is a Director,
Managing Agent, Manager, Employee or guarantor or in which he holds a substantial interest
6. The present exposure is not an exposure to relatives of the Bank's Chairman / Managing Director or other
Directors (including Chairman / Managing Director) or Director of other banks and their relatives, Directors
of Scheduled Co-operative Banks and their relatives, Directors of Subsidiaries / Trustees of Mutual Funds /
Venture Capital Funds set up by our Bank or other banks etc.
7. The aggregate exposure (including non-funded exposure) to all `large borrowers' does not exceed 800% of
Bank’s `capital funds' (as defined for the purpose of extant exposure norms of RBI).
8. That the present exposure is not under regulatory retail exposure & the granularity criteria for regulatory
retail exposure is not applicable
9. The present exposure, being exposure to an NBFC, does not exceed 10% of the Bank’s Capital fund, as per
the last audited balance sheet
10. The present exposure is not a foreign currency exposure & the Bank does not have any unhedged foreign
currency exposure to the corporate & hence no monitoring is required.
11. Legal Entity Identifier (LEI) as per RBI guidelines. - As per RBI guidelines, large borrowers having total
exposure to Scheduled Commercial Banks (SCBs) between ₹100 Crore to ₹500 Crore are required to obtain

LEI registration on or before 31st March, 2019 & those with exposure from ₹50 Crore to ₹100 Crore are
required to obtain the LEI registration on or before 31 st December, 2019. M/s Aryadhan Financial Solutions
Private Limited has obtained LEI registration.
12. The proposed loan is not extended for any activities undertaken by NBFCs which are not eligible for bank
credit as below:
(i) Bills discounted / rediscounted by NBFCs, except for rediscounting of bills discounted by NBFCs arising
from sale of -
a) commercial vehicles (including light commercial vehicles), and
b) two wheeler and three wheeler vehicles, subject to the following conditions:
 the bills should have been drawn by the manufacturer on dealers only;
 the bills should represent genuine sale transactions as may be ascertained from the chassis /
engine number; and
 before rediscounting the bills, banks should satisfy themselves about the bona fides and track
record of NBFCs which have discounted the bills.
(ii) Investments of NBFCs both of current and long-term nature, in any company / entity by way of shares,
debentures, etc. However, Stock Broking Companies may be provided need-based credit against shares
and debentures held by them as stock-in-trade.
(iii) Unsecured loans / inter-corporate deposits by NBFCs to / in any company.
(iv) All types of loans and advances by NBFCs to their subsidiaries, group companies / entities.
(v) Finance to NBFCs for further lending to individuals for subscribing to Initial Public Offerings (IPOs) and
for purchase of shares from secondary market.
21.Recommendations
Aryadhan Financial Solutions Private Limited is engaged in providing warehousing receipt financing for the
commodities stored under the control of its parent company Arya Collateral Warehousing Services Private
Limited. Aryadhan was incorporated in 2017 however it has expertise of above 2 decades through its parent
company under whose flagship it is into lending business. Arya Collateral is engaged in providing warehousing
and management of stocks primarily agricultural products. The company offers warehousing and collateral
management, audits and surveillance, financial inclusion and priority sector assistance, quality certification, and
assaying services. ACWSPL works with farmers, farmer organizations, financial institutions, agriculture
corporations, development actors, commodity exchanges, and international players. The company’s clientele
includes ADM, Britannia, ITC Limited, Axis Bank, HDFC Bank, ICICI Bank, Yes Bank, and RBL Bank.
Based on operations in 14 states, existing clientele, comfortable capital profile, scope for deepening WRF
Funding, availability of effective liquidation mechanism and comfortable liquidity position; Additional Fresh
Term loan of ₹11.25 Crores and Fresh BC Limit of Rs.50 Crores is being recommended.
Meeting at Borrower’s Corporate office at Noida, Uttar Pradesh was held on Sep. 13, 2022. The meeting was
physically attended by Mr. Mohit Wahi (Head Wholesale Lending-NBFC), Mr. Arjitkumar Manbahadur Singh
(Credit Analyst, Wholesale Banking) and Mr. Anindya Mitra (NCM- MSME). The said meeting was attended
through VC by Mr. Kanak Baid (Credit Analyst, Wholesale Banking) and Mr. Abhinav Mishra (Head-National
Product & Portfolio Support- Wholesale Lending).
Delegation of Powers
As per the Credit Approval Authorization Matrix (approved by the Board of the Bank in the Board meeting held
on Sep. 17, 2021 and vide circular no. USFB/CIR/CREDIT/2022-23/07/115 dated Oct. 10, 2022), the delegation
of powers vested with Senior Management Credit Committee (SMCC) of the Bank for lending to Wholesale
Corporates are upto ₹20.00 Crore to Borrowers with external rating below “A-“ or “Unrated” and upto ₹30.00
Crore to Borrowers with external rating “A- & above“. SMCC is also empowered to sanction BC Limit upto
₹100 Crores referring to aforementioned circular
Given the proposed Term Loan Exposure is of ₹20.00 Crores (including existing and proposed), Proposed BC
Limit is of ₹50 Crores and external rating of “BBB-” (lowest), present proposal falls under the purview of
SMCC.
Proposal is being presented before SMCC for its approval as per terms and conditions detailed in the Appendix to
this note and summarized as below:

Facility Term Loan

Amount ₹11.25 Crore
Tenor 12 Months
Repayment Frequency:
Principal 12 Monthly
Interest Monthly
One Year MCLR + 0.03%, i.e., 11.86% p.a. Floating (One
Interest Rate
Year MCLR as on date is 11.83%) (Annual Reset)
Processing Fee 0.10% plus applicable taxes

Security:
Book Debts – 110% of exposure with First & Exclusive
Primary
charge.
Cash Collateral 5%
Personal Guarantee Nil
Corporate Guarantee Arya Collateral Warehousing Services Private Limited
Documentation Charges ₹15,000 (Upfront)
Monitoring Charges ₹15,000 (Annual)
As per RBI Master Circular (Branch Authorization):-

The scheduled commercial banks may engage Business Correspondents (BCs), subject to compliance with the
following guidelines.
Banks may formulate a policy for engaging Business Correspondents (BCs) with the approval of their
Board of Directors.
Due diligence may be carried out on the individuals / entities to be engaged as BCs prior to their engagement.
The due diligence exercise may, inter alia, cover aspects such as (i) reputation/market standing, (ii) financial
soundness, (iii) management and corporate governance, (iv) cash handling ability and (v) ability to
implement technology solutions in rendering financial services.
Companies as BCs-
The Commercial Banks can opt for Company as BC, provided the Companies have large & widespread retail
outlets
NBFC as BCs-
In view of the general permission given to domestic scheduled commercial banks (Excluding RRBs) to open
branches in Tier 1 to Tier 6 centers, they may engage Non-deposit taking NBFCs (NBFCs-ND) as BCs, subject
to the following conditions:
a) It should be ensured that there is no comingling of bank funds and those of the NBFC-ND appointed as BC.
b) There should be a specific contractual arrangement between the bank and the NBFC-ND to ensure that all
possible conflicts of interest are adequately taken care of.
c) Banks should ensure that the NBFC-ND does not adopt any restrictive practice such as offering savings or
remittance functions only to its own customers and forced bundling of services offered by the NBFC-ND and the
bank does not take place
Recommendations: -
Major Terms Recommendations - Business Dept. Recommendation - Credit Dept.

Facility Retail Warehouse Receipt Finance as Retail Warehouse Receipt Finance as
Utkarsh Small Finance Bank’s Utkarsh Small Finance Bank’s Business
Business Correspondent. Correspondent..
Maximum Loan Maximum loan outstanding under this Maximum loan outstanding under this
Outstanding agreement is ₹50 Crores. agreement is ₹50 Crores.

1. Nature of Facility-Business Correspondent

2. Facility: Origination of Retail Warehouse Receipt Finance as Utkarsh Small Finance Bank’s Business
Correspondent.
3. Maximum Loan Outstanding under Proposed facility: Maximum loan outstanding under this agreement is
₹50 Crores (Retail Ware House Receipt Finance)
4. Products /Process: Details as given below (Term Sheet)
5. Operational District: - The districts to be covered in this phase of arrangement are:
State Approved/ Districts/ Locations
Proposed
All except Proposed Disbursement of loans against the
Southern commodities in professionally
States managed warehouse of Arya
Collateral Warehousing Services
Private Limited (ACWSPL) across
the country except southern states.
(Kamal Kapoor)
Head – Wholesale Credit

Appendix
Terms and Conditions:
A) Facility Term Loan
1 Limit ₹11.25 Crore
2 Currency ₹
 For onward lending in the normal course of business
3 Purpose  The funds cannot be utilized for onward lending to any subsidiary or associate
Company / associate NBFC.
4 Tenor of the loan 12 months
Primary: 1.10x of Receivables. First and exclusive charge on Book Debts/Loan
5 Security assets of the Company to the extent of 110.00% of the exposure created out of
Utkarsh Small Finance Bank Ltd funding.
5% of the Loan Amount sanctioned in the form of FDR duly marked lien in favour
6 Cash Collateral of Utkarsh Small Finance Bank till the entire tenor of the loan (to be obtained before
disbursement of the loan).
One Year MCLR + 0.03%, i.e., 11.86% p.a. Floating (One Year MCLR as on date is
7 Rate of Interest
11.83%) (Annual Reset)
8 Processing fees 0.10% plus applicable taxes
Documentation
9 ₹ 15000 plus applicable taxes
Charges
Annual Monitoring
10 ₹ 15000 plus applicable taxes
Visit Charges
11 Personal Guarantee Nil
12 Corporate Guarantee Arya Collateral Warehousing Services Private Limited
Subsequent to each disbursement, the borrower shall submit list of beneficiaries,
amount of loan and purpose of loan utilization, signed by a Chartered Accountant,
within 60 days from the loan disbursement date.
Draw down / Disbursement of loan is subject to:

13 (a)
Tranche
 Utkarsh Small Finance Bank Ltd being satisfied regarding the financial
performance, portfolio quality, recovery rate, utilization of loan etc.
 The borrower fulfilling all the obligations, as stipulated by RBI applicable to
NBFCs
13
Utilisation Period 30 days
(b)
The Loan shall be repaid in 12 Monthly Principal & Interest instalments.
The repayments made shall be appropriated in the following order
a) Firstly, towards interest including additional interest payable under the loan
agreement.
Tenor/Repayment
14 b) Secondly, towards further interest and liquidated damages on defaulted
schedule
amounts
c) Thirdly, towards penalty on prepayment
d) Fourthly, towards repayment of instalment of principal due and payable under
this agreement
The borrower shall remit the repayment amount as per repayment schedule of this
agreement in the designated account of Utkarsh Small Finance Bank Limited or
15 Mode of Repayment shall provide a Debit Mandate/NACH from their CC/OD accounts maintained with
the Bank that has 10 per cent or more of the exposure of the banking system of the
borrower as per guidelines Reverse Bank of India.
Interest payment Interest would be payable monthly, on the first working day of subsequent month,
16
frequency starting from the month of draw down.
17 Interest calculation Interest will be calculated on 365 days basis
If the Borrower wishes to prepay the facility amount, it may do so with payment of
18 Prepayment Prepayment Premium of 2.0% on principal amount of the loan prepaid, subject to
the Borrower giving at least 15 days’ prior written notice of the same to the Bank.

Pre-commitment
19 Not Applicable
Conditions
20 Special Conditions
i) The Company shall not invest / lend/extend advances to group or subsidiary
companies without written approval of the Bank.
ii) The borrower shall not issue corporate guarantee on behalf of its group/sister
concerns without prior written approval of Utkarsh Small Finance Bank Ltd.
iii) Subsequent to each disbursement, the borrower shall submit list of

beneficiaries, amount of loan and purpose of loan utilization, duly certified by
a Chartered Accountant, within 60 days from the loan disbursement date
iv) If the Bank finds that the profitability, the cash flow, and other circumstances
so warrant, the Bank may, on prior intimation to the borrower, advise the
borrower to prepay the loan on dates earlier than the dates set out in the
repayment schedule and also to increase the repayment instalment amount.
v) Utkarsh Small Finance Bank Ltd shall have the right to recall the entire loan if
it is not satisfied with the proper end use of funds or the borrower commits
default in payment of instalment towards principal and/or interest on due
date(s) or in the event of breach or violation of any terms and conditions of
the loan agreement
vi) The borrower shall agree to carry out the lending operations with due
diligence and efficiency, sound business practices and in accordance with the
code of conduct stipulated by Reserve Bank of India (RBI) for Non-Banking
Finance Companies (NBFC)
vii) All case of frauds/defalcation shall be reported forthwith to Utkarsh Small

Finance Bank Ltd with action taken/proposed report
viii) The company shall not invest/lend/extend advances to group or subsidiaries

companies without prior written approval of Utkarsh Small Finance Bank Ltd.
ix) The borrower shall not issue corporate guarantee on behalf of its group/sister
concerns without prior written approval of Utkarsh Small Finance Bank Ltd.
x) In the event of default committed by the company in complying with the

provisions of the Loan Agreement to be entered into by the company for
availing the present facility, the same shall be deemed to be a default
committed by the company under any Loan Agreement / Facility Agreement
entered into by the company for availing any other facility / facilities.
xi) In the event of default committed by the company under any Loan
Agreement / Facility Agreement entered into by the company for availing any
other facility / facilities, the same shall be deemed to be a default committed
by the company under the provisions of the Loan Agreement to be entered
into by the company for availing the present facility.
xii) The facility either in part or full will not be used for investment in Capital
market, land acquisition, acquiring equity shares of Indian company/ies,
buyback of shares of Indian company or any other purpose, which is
prohibited or any illegal activity.
xiii) Utkarsh Small Finance Bank Ltd reserves the right to stipulate such additional
conditions at its sole discretion prior to the disbursement of its above-
mentioned committed amount.

xiv) Utkarsh Small Finance Bank Ltd shall have right to sell, assign, transfer or
otherwise dispose of or any part of the rupee term loan at any time.
xv) The company shall furnish a certificate from a Chartered Accountant

regarding the utilization of fund / book debts within 60 days from the date of
disbursement of each tranche of the Term loan.
xvi) The loan sanction letter would be valid for 30 days from the date of issue,
within which the Company would be required to send their acceptance of the
sanction letter, as a token of their acceptance of the stipulated
terms/conditions with the duly completed documentation.
xvii) M/s Aryadhan Financial Solutions Private Limited shall submit quarterly
reports on book debts duly certified by the practicing Chartered
Accountant/Chartered Accountant Firm. Any loan with overdue of 90 days
plus would be replaced by the customer with fresh pool of 0 DPD. The
borrower will share this certificate in totality mentioning name and respective
margin of the all other lenders.
xviii) Irrevocable Power of attorney in favour of Utkarsh Small Finance Bank Ltd.
to recover Book Debts directly from the borrower and to create mortgage in
favour of Utkarsh Small Finance Bank Ltd. in the event of default by the
Company
xix) At the time of sanction, the borrower shall provide a declaration regarding
their Unhedged Foreign Currency Exposure (UFCE). The borrower shall
subsequently provide such exposure certificates at quarterly intervals within
45 days from the close of each quarter, on self-certification basis. However, at
least on an annual basis, the borrower shall provide the certificate regarding
UFCE, duly certified by their statutory auditors prior to October 31st of every
year for the preceding financial year or declaration on UFCE has to be
mentioned in Audited Financial Statement.
xx) The borrower would obtain Legal Entity Identifier (LEI) registration within
the stipulated timeline, as prescribed by the Reserve Bank of India.
xxi) The Bank shall recover principal and interest, as and when due from the
borrower in the designated account of Utkarsh Small Finance Bank Limited or
shall provide a Debit Mandate/ NACH from their CC/OD accounts
maintained with the Bank that has 10 percent or more of the exposure of the
banking system of the borrower as per guidelines of Reserve Bank of India.
xxii) The Borrower shall provide required approval to USBFL to access its data
from any Credit Information Company (CIC) in order to ascertain the
performance of its portfolio.
xxiii) Compliance with specific environmental & social management conditions:

Borrower confirms that:
Borrower shall not utilize funds borrowed from USFBL in providing loans,
funding or other support to Clients engaged in any of the activities mentioned in
the below activities
- Production or trade in any product or activity deemed illegal under host country
laws or regulations or international conventions and agreements, or subject to
international bans such as pharmaceuticals, pesticides / herbicides, ozone
depleting substances, PCB’s, wildlife or product regulated under CITES.
- Production or trade in weapons and munitions.

- Production or trade in alcoholic beverages (excluding beer and wine) This does
not apply to project sponsors who are not substantially involved in these
activities. “Not substantially involved” means that the activity concerned is
ancillary to a project sponsor’s primary operations.
- Production or trade in tobacco.
- Gambling, casinos and equivalent enterprises.
- Pornography
- Production or trade in radioactive materials. This does not apply to the purchase
of medical equipment quality control Measurement) equipment and any
equipment which the company considers the radioactive source to be trivial and/
or adequately shielded.
- Production or trade in unbonded asbestos fibers. This does not apply to purchase
and use of bonded asbestos cement sheeting where the asbestos contend is less
than twenty percent. (20%)
- Drift net fishing in the marine environment using nets in excess of 2.5 KM in
length.
- Production or activities involving harmful or exploitative forms of forced
labour/harmful child labour. Forced labour means all work or service, not
voluntarily performed, that is extracted from an individual under threat of force
or penalty. Harmful child labour means the employment of children that is
economically exploitive, or is likely to be hazardous to, to interfere with,
the child’s education, or to be harmful to the child’s health, or physical, mental,
spiritual, moral or social development.
- Production, trade, storage, or transport of significant volumes of hazardous
chemicals, or commercial scale usage of hazardous chemicals. Hazardous
chemicals include gasoline, kerosene, and other petroleum products.
- Production or activities that impinge on the lands owned, or claimed under
adjudication, by indigenous peoples, without full documented consent of such
peoples.
- Prostitution.
xxiv) The borrower undertakes that the proposed loan is not extended for any
activities undertaken by borrower which are not eligible for bank credit
as below:
a) Bills discounted / rediscounted by NBFCs, except for rediscounting of bills
discounted by NBFCs arising from sale of –
- commercial vehicles (including light commercial vehicles), and
- two-wheeler and three wheeler vehicles, subject to the following conditions:
- the bills should have been drawn by the manufacturer on dealers only;
- the bills should represent genuine sale transactions as may be ascertained from
the chassis / engine number; and
- before rediscounting the bills, banks should satisfy themselves about the bona
fides and track record of NBFCs which have discounted the bills.
b) Investments of NBFCs both of current and long-term nature, in any company /

entity by way of shares, debentures, etc. However, Stock Broking Companies
may be provided need-based credit against shares and debentures held by them
as stock-in-trade.
c) Unsecured loans / inter-corporate deposits by NBFCs to / in any company.
d) All types of loans and advances by NBFCs to their subsidiaries, group
companies / entities.
e) Finance to NBFCs for further lending to individuals for subscribing to Initial
Public Offerings (IPOs) and for purchase of shares from secondary market.
Operational terms and conditions

The term loan facility are available for a period of 12 months subject to review at
Period of sanction periodical intervals wherein the facility may be continued/cancelled/reduced depending
upon the conduct and utilization of the facilities.

Inspection will be conducted at half yearly intervals by the Bank’s functionaries.

Inspection Inspections, if required will also be conducted by the Bank’s concurrent auditors or
statutory auditors or officials of RBI or any other re-financing agency
Provisional: within three months from the close of the accounting year and within period
Audited/unaudited of 60 days from end of each quarter.
financial statements Audited: within six months from the close of the accounting year or within 15 days from
filing with the regulator whichever is earlier.
The Company shall create security stipulated by the Bank in a form and manner
Creation of charges satisfactory to the Bank prior to disbursement and shall file particulars of charges with the
Registrar of Companies as prescribed by law.
Special Conditions i) Interest payable to unsecured lenders will be subservient to the interest payable to
Utkarsh Small Finance Bank Ltd.
ii) Company shall ensure that a minimum CRAR as per regulations is maintained during
currency of the loan.
iii) The company shall pay penal interest Default Interest Rate at 2% over the
Documented Rate, which shall be levied from the date of default of any of the
covenants noted as under till the date of compliance
iv) The Bank reserves the unconditional right to cancel the outstanding un-drawn
commitments advanced/ to be advanced under the CAL and/ or transaction documents
(either fully or partially) without giving any prior notice to the Borrower, on the
occurrence of any one or more of the following:
i. In case the overall limits/part of the overall limits are not utilized by the
borrower; or
ii. In case of deterioration in the creditworthiness of the borrower in any manner
whatsoever; or
iii. In case of non-compliance of the terms and conditions of the transaction
documents and/or CAL.
v) For the purpose of this clause, ‘deterioration in the creditworthiness’ shall mean and
include without limitation, the following events:
a) downgrade of the rating of the borrower by a credit rating agency;
b) inclusion of the borrower and/or any of its directors in the Reserve Bank of India’s
wilful defaulters list;
c) closure of a significant portion of the borrower’s operating capacity;
d) any adverse comment from the auditor; and
e) any other reason/ event in the opinion of the Bank constituting or which may
constitute deterioration in the creditworthiness
vi) The Borrower shall provide all information as may be required by the Bank/
Lender from time to time in relation to its foreign currency exposures and hedging
details in relation thereto.
vii) In the event of any change in applicable laws/ regulations (including

regulatory/statutory requirements pertaining to provisioning norms and/or risk
weightage), the Bank/ Lender shall have the right to recover the cost, in any
manner that it deems fit, including by way of revision in spread/applicable rate.
viii) The Borrower will keep the Bank advised of any circumstances adversely affecting
their financial position including any action taken by any creditor, Government
authority against them.
ix) The borrower will furnish information/documents including quarterly/annual

financial accounts as may be required by the Bank for review of credit facility now
sanctioned.

x) The borrower shall pay the charges to the Bank as per the Banks standard schedule
of charges for various services rendered by the Bank.
xi) The Bank may at its sole discretion disclose such information to such
institution(s) / bank in connection with the credit facilities granted to the borrower
if requested by them.
xii) Loans to directors/ associates and other related entities shall be made only with our
prior consent in writing.
xiii) The borrower shall adhere to any other covenants stipulated by the Bank from time
to time.
xiv) The Bank will have the right to examine at all times, the borrower’s books of
accounts and to have the its offices/ sites inspected from time to time by officer(s)
of the bank and / or qualified auditors and / or technical experts and / or
management consultants of the Bank’s choice. Cost of such inspection shall be
borne by the borrower.
xv) The borrower shall not make any drastic change in its management set up without
the permission of the Bank.
xvi) Any other terms and conditions, which are not specifically covered herein but
stipulated in the sanction, should be strictly complied with, including those
stipulated by other banks, if any, under multiple banking arrangements.
xvii) The Bank will be free to suitably modify the terms and conditions detailed above
whenever considered necessary. This will be done in consultation with the
borrower.
xviii) The Bank reserves the right to discontinue the facility and to withhold/stop any
disbursement without giving any notice in case of non-compliance/breach of any
terms and conditions stipulated herein and from time to time as also in the relevant
documents or any information/particulars furnished to us is found to be incorrect or
in case of any development or situations in the opinion of the bank, its interest will
be/is likely to be prejudicially affected by such continuation or disbursement.
xix) The borrower not to pay any consideration by way of commission, brokerage, fees
or any other form to guarantors directly or indirectly.
xx) The Borrower and Guarantor(s) shall be deemed to have given their express
consent to the Bank to disclose the information and data furnished by them to the
Bank and also those regarding the credit facility/ies to the Credit Information
Bureau (India) Ltd. (“CIBIL”), upon signing the copy of the sanction letter. The
Borrower and Guarantor(s) further agree that they shall further execute such
additional documents as may be necessary for this purpose.
xxi) In the event of the borrower committing default in the repayment of term loan
instalments or payment of interest on due dates, Utkarsh Small Finance Bank Ltd.
shall have an unqualified right to disclose the names of the Borrower and its
directors to the Reserve Bank of India (RBI). The borrower shall give its consent to
Utkarsh Small Finance Bank Ltd. and / or to RBI to publish its name and the names
of its directors as defaulters in such manner and through such medium as Utkarsh
Small Finance Bank Ltd. in their absolute discretion may think fit. The aforesaid
right shall be available to Utkarsh Small Finance Bank Ltd. in addition to and not
in derogation of any other rights available under the Loan Agreement or the
General Conditions, as the case may be.
xxii) The Credit facilities granted will be subject to RBI guidelines / Bank’s policies

from time to time.
xxiii) Company should not induct a person who is a director on the Board of a
Firm/Company, which has been identified as a wilful defaulter. In case such a
person is found to be on the board of the Company, it would take expeditious and
effective steps for removal of the person from its Board.
xxiv) This sanction does not vest with the Borrower any right to claim any damages
against the Bank for any reason whatsoever.
xxv) Confirmation to be submitted by the Borrower that the amount of drawdown to be

availed from USFB from time to time (multiple tranche drawdown) will remain
unencumbered till the loan is fully deployed by us within stipulated timeline and
appropriate charge on the underlying receivables pool in created in favour of USFB
(30-60 days) as per sanction terms.
xxvi) Confirmation to be submitted by the Borrower that the loan to be availed from
USFB by borrower will not be released/provided to any Associate / Subsidiary
company (Equity / Investment / Unsecured loan / Fixed Asset creation or any other
form) during the tenor of loan.
xxvii) Confirmation to be submitted by the Borrower that without prior written approval
from USFB, borrower will not establish/ form any new associate / subsidiary
company during the tenor of loan.
xxviii) The undertaking from the Borrower Company M/s Aryadhan Financial
Solutions Private Limited stating that the end utilization of the funds from the
loan proceeds shall be used for the onward lending in the normal course of
business. The Borrower Company shall not utilize the funds for onward lending
to the subsidiary / associate company in any form or manner and submit the
written undertaking to this confirmation prior to disbursement.
xxix) Declaration from M/s Aryadhan Financial Solutions Private Limited on

Multiple Banking Arrangement and Credit Facilities being availed as per
Annexure-1 of RBI Circular- RBI/2008-2009/354 UBD.PCBNo.
36/13.05.000/2008-09 dated January 21, 2009
Default Rates-Penal Interest

Facility /
Sl. Proposed default interest rate
Nature of Reckoning of default interest
No (p. a.) payable monthly
Default
Penal In case of any default / delay in the repayment of Penal Interest @ 2% P.A. shall be charged on
Interest principal instalments or payment of interest, the outstanding amount for the defaulted /
1.
charges or both or other monies due on the facility. delayed period (calculated from due date till
the date of payment).
Penal Non-Submission or Delayed submission of Book Penal Interest @ 2% P.A. shall be charged on
interest Debts / Receivables Hypothecated to USFB within the outstanding amount for the defaulted /
2.
30 days from end of the quarter starting post the delayed period (calculated from due date till
date of LUC submission the date of submission).
Penal Delay in submission of audited financials as on Penal Interest @ 2% P.A. shall be charged on
interest 31st March of every year the outstanding amount post 30 days from the
due date allowed as per regulatory timelines
3.
for audited financials for the defaulted /
delayed period (calculated from due date till
the date of submission).
Penal GNPA>3.00% in any quarter. First testing to be Penal Interest @ 2% over and above the
4.
interest done from Dec 2022 numbers documented rate shall be charged on the
5. Penal Capital Adequacy Ratio < 20% outstanding amount from the date of default

Facility /
Sl. Proposed default interest rate
Nature of Reckoning of default interest
No (p. a.) payable monthly
Default
interest (to be tested based on year end numbers)
Penal Leverage of the Company (Total Outside
interest Liabilities/TNW, including CCPS) > 5x shall be
6. reckoned after adjustment for contingent liabilities of any of these covenants till the date of
and investment in subsidiaries. compliance.
(to be tested based on year end numbers)
7. Increase in External Rating falls by one notch from existing Rate of Interest shall be increased by 2% p.a.
Rate of rating of “BBB-“ from CRISIL Ratings. over and above the documented rate on the
Interest outstanding amount in case of breach in rating
covenant.
Covenant mentioned in clause 1 will be tested as and when repayments due. Covenant mentioned in clause 2 and
clause 4 will be tested on quarterly basis. Covenant mentioned in clause 3, 5 & 6 will be tested on yearly basis and
covenant mentioned in clause 7 will be tested as and when next rating done.
Term Sheet for BC Arrangement
B Facilty Business Correspondent arrangement
1 Type of Facility Exposure limit under Business Correspondent arrangement
2 Product Retail Warehouse Receipt Finance
3 Maximum loan Products Current Limit Fresh Limit Total Limit

outstanding under in ₹ Crore in ₹ Crore in ₹ Crore
this agreement
Retail Warehouse Receipt 0 50.00 50.00
Finance
Total 0 50.00 50.00
4 Purpose of Limit Origination of Retail Warehouse Receipt Finance product through Business
Correspondent
5 Operational Disbursement of loans against the commodities in professionally managed warehouse

Geographies of Arya Collateral Warehousing Services Private Limited (ACWSPL) across the
country except southern states.
6 Roles and Aryadhan Financial Solutions Private Limited (AFSPL)

Responsibilities of
1. Sourcing the customers as per the eligibility
Business
2. Ensuring the pre-stacked commodities or commodities stacked and stored after
Correspondent
loan sanction and limit setup at the professionally managed warehouse of
ACWSPL are of the highest standards and quality.
3. Disbursement document preparation
4. Raising request for release of commodities.
5. Ensuring margin call intimation to the customers on breach of initial trigger margin
of commodities.
6. Collection of margin calls and monitoring of margin call default and payment
7. Ensure liquidation of commodities at the time of default either of the repayment of
margin call or of expiry of disbursement tranche
8. Monitor the quality and quantity of the commodities lien marked in favour of the
Bank
9. Ensure ACWSPL maintain highest standard of monitoring, release of commodities,
warehouse management including the maintenance of the structure of the
warehouse and quality and quantity of the commodities
10. The stocks under lien of the Bank shall have not be moved to any other location or
warehouse without a strong reason and with the permission of the Bank in case of

any natural calamities or structural breakdown of the warehouse

7 Products to be 1. Product - Working Capital Demand Loan
Offered to 2. Minimum Limit - ₹25 Lakh; Maximum Limit - ₹2 Crore
customers 3. Tenure – 12 months (Limit renewal after 12 months from the date of limit setup
4. Disbursement – in tranches with tranche expiry date as per the underlying
commodities
5. Rate of Interest (simple interest)– 11.25% - 16.00%
6. Processing Fee (to be obtained for each disbursement tranche)– 0.25% - 1.00% +
GST
7. Penal Interest per annum on the overdue amount– 11%
8. Margin call – Applicable if the current price of the commodity drops below the
initial margin % as specified for the commodity or the market price dips below the
initial margin % due to deterioration of the commodity
9. Warehouse management charges, insurance charges – To be borne by the customer
payable to ACWSPL, AFSPL
8 Service Fees 1. 1.50% + Applicable Taxes on the disbursement amount to AFSPL.

payable to the 2. 1.00% per annum + Applicable Taxes on the average portfolio outstanding payable
Business to ACWSPL
Correspondent & 3. One time IT development fee on actuals.
Collateral
Management
Agency
9 Documents 1. Undertaking from the BC that it shall inform the Bank before making any major
changes in its Governance, Internal Operations, Processes and Controls and any
similar arrangement with other financial institutions.
2. BC to submit audited financial statement within 120 days from year end and
quarterly provisional/ audited financials within 45 days post quarter end or as per
the regulatory guidelines.
3. BC to inform the Bank regarding infusion of equity and long-term sub- debts.
4. Any other terms and conditions that may be specified from time to time at the sole
discretion of the Bank.
5. BC to submit quarterly progress report in the specified format within 45 days post
quarter end.
10 Risk Sharing 1. The BC shall take over the loans which are in 60+ DPD through a Balance Transfer
process.
2. For such loans where the margin calls are not honoured by the customer the BC
shall ensure timely liquidation of the commodities prior to 60+ DPD or the expiry
of the tranche to ensure that the Bank has no losses whatsoever.
11 Covenants Not Applicable
12 Arrangement This arrangement shall be valid up to the closure/ settlement of the loans sourced
Validity through AFSPL.
13 Other 1. The BC shall undergo a portfolio audit involving detailed examination of

Requirements operational systems and procedures, funds utilization, assessment of loan portfolio
in respect of the risk parameters as well as planning and control etc. by the Bank or
an external agency as appointed by the Bank.
2. The BC shall keep the Bank informed of the happening of any event likely to have
substantial effect on the business, along with explanations and the remedial steps
proposed to be taken.
14 Representation & 1. That the BC is not a defaulter with any Banks, Financial Institutions, Co-operative
Warranties by the Credit Society.
Business 2. That the BC is not affiliated with any political/ religious organizations.
Correspondents 3. That there are no criminal records/ adverse reports against the BC.
4. That the BC is not owned or controlled by any director or officer or employee of
Utkarsh Small Finance Bank.

5. That the BC should satisfy themselves about the end-use of the fund by the
borrowers for the cases sourced by them.
15 Separation Should the Bank or the BC wish to discontinue the arrangement, the same can be done
on mutually agreeable basis. Any discontinuation methodology adopted should first
ensure the serviceability of the customer till the end of the tenure of the customer’s
loan.

Annexure-1
Month Wise Disbursement
Disbursement Trend
Period Disbursement
FY18 2.55
FY19 44.98
Q1-FY20 17.16
Q2-FY20 10.14
Q3-FY20 27.03
Q4-FY20 43.23
Total FY20 97.56
Apr-20 6.58
May-20 27.22
Jun-20 29.22
Jul-20 6.55
Aug-20 4.80
Sep-20 8.29
Oct-20 18.94
Nov-20 20.72
Dec-20 29.94
Jan-21 31.10
Feb-21 35.39
Mar-21 62.11
Total FY21 280.86
Apr-21 57.44
May-21 27.97
Jun-21 33.75
Jul-21 20.22
Aug-21 13.50
Sep-21 9.51
Oct-21 30.61
Nov-21 29.45
Dec-21 44.58
Jan-22 33.93
Feb-22 44.62
Mar-22 104.78
Total FY22 450.50
Apr-22 137.06
May-22 147.60
Jun-22 92.03
Jul-22 19.15
Aug-22 10.90
Total FY23 till Aug 406.74
Product-wise disbursement
Product FY19 FY20 FY21 FY
FY22 FY23
Categor 22
y Q1 Q2 Q3 Q4 Q1 Q T

ill
2 A
* u
g
4
Warehou 2
37 0
se 10 18 44 9.
1.8 1.
Receipt 41.47 89.16 280.53 118.94 42.97 4.7 1.1 7.7 7
4 6
Funding 7 0 8 6
0
Lease
0.
Rental 0.2 .1
1.5 1.9 3
Discount 0.07 0.98 0.30 0.22 0.27 - 7 2
0 9 9
ing
Top Up .1
0.7 0.7 - -
loan - 5.66 0.67 - - - 7
4 4
Bill 0. 4.
Discount 4.5 1 7
3.71 3.92 - - - - - -
ing 8 7 5
4
3
0
10 18 45 37 0.
6.
45.26 99.72 281.50 119.16 43.24 4.7 3.3 0.5 6.6 0
7
7 4 0 9 5
4

Arya Financial Services PROPOSAL - OCT - SMCC

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Arya Financial Services PROPOSAL - OCT - SMCC

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Utkarsh Small Finance Bank – WSL Credit

Date: Oct 14, 2022

Credit Approval Memorandum to SMCC

RM Mr. Chandershekhar Mahto

Jan 27, 2017

Yes. Term Loan Sanctioned for

Internal Rating: USFB 4 (Moderate Safety) Listed: N

Instruments CRA Rating/Grading Rating Action RR Date

All amount in note in ₹ Crore, unless specified Page 1 of 52

CRA - Credit Rating Agency, RR – Rating Rationale

Key Rating Factors:

2. Exposure details under NBFC Industry:

2.2 Obligor wise Exposure, including undisbursed [Rs. Cr]:

4. Brief Background & Business Model:

All amount in note in ₹ Crore, unless specified Page 2 of 52

As on Sep. 30, 2022, Company had –

Particulars Existing Proposed

CG Arya Collateral Warehousing Services Arya Collateral Warehousing Services Private

All amount in note in ₹ Crore, unless specified Page 3 of 52

Audit & Surveillance

All amount in note in ₹ Crore, unless specified Page 4 of 52

All amount in note in ₹ Crore, unless specified Page 5 of 52

Directors/Partner on the board of other companies/LLP:

All amount in note in ₹ Crore, unless specified Page 6 of 52

Name Designation DOJ Other Directorship & Partnership

All amount in note in ₹ Crore, unless specified Page 7 of 52

All amount in note in ₹ Crore, unless specified Page 8 of 52

UPL, ICICI Bank, HDFC Bank, Soc Gen, DBS

All amount in note in ₹ Crore, unless specified Page 9 of 52

All amount in note in ₹ Crore, unless specified Page 10 of 52

7.2 Shareholding Pattern as on September 30, 2022

Sr. No of % of equity Type of shareholding

Arya Collateral Warehousing

0.01% Compulsory convertible non-cumulative preference shares

All amount in note in ₹ Crore, unless specified Page 11 of 52

Secondary 4,250 4,250

Name Profile Key Area of Investment

Lightstone Fund S.A is Luxembourg Lightstone and Aspada invest in sustainable

Key investments of Omnivore are Agnext which

Accion Quona Accion Quona Inclusion Fund invests in

All amount in note in ₹ Crore, unless specified Page 12 of 52

history, SMECorner which provides affordable

Asia Impact helps to integrate rural under-served

CIBIL CIBIL Delinquencies, if

All amount in note in ₹ Crore, unless specified Page 13 of 52

M/s. BSR & Co LLP was Statutory

M/s Dass Gupta & Associates were

10.11.2022 Arya Collateral Warehousing Services

All amount in note in ₹ Crore, unless specified Page 14 of 52

All amount in note in ₹ Crore, unless specified Page 15 of 52

Disbursement: For disbursement, pre-defined process is followed as summarised below:

All amount in note in ₹ Crore, unless specified Page 16 of 52

Reminder Call Letter

Reminder Call Letter 1 Before 30 days of Loan Due Date

CROP CROP Preparation and updating of

All amount in note in ₹ Crore, unless specified Page 17 of 52

Fraud Reporting process

Top 20 Borrowers as on Sep 30, 2022 (Rs.in Crores)

All amount in note in ₹ Crore, unless specified Page 18 of 52

Comment: Around 86% borrowing is from NBFC/FI

Lender Wise exposure excluding at the end of Aug-22 (Rs.in Crores)

All amount in note in ₹ Crore, unless specified Page 19 of 52

Vivriti Capital 22.50 7.61%