Noting Certificate Manappuram Finance LTD

No.
CTL/DEB/20-21/Noting Certificate/2901
November 07, 2020
To Whomsoever It May Concern,
CERTIFICATE FOR RECEIPT AND NOTING OF INFORMATION

[Pursuant to Regulation 52(5) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015]
We, Catalyst Trusteeship Limited (“Debenture Trustee”) hereby confirm that we have
received and noted the information, as specified under regulation 52(4) of Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulation, 2015 (“Regulations”), provided to us by Manappuram Finance Ltd (“the
Company”) for the Half year ended September 30, 2020.
This Certificate is being issued pursuant to the requirements of regulation 52(5) of the
aforesaid Regulations, for onward submission to Stock Exchange(s) by the Company.
For Catalyst Trusteeship Limited
Authorised Signatory
Encl: Results submitted by Company

Ref: Sec/SE/385/2020-21
November 06,2020
BSE Limited National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers 5th Floor, Exchange Plaza
Dalal Street Bandra (East)
Mumbai- 400001 Mumbai – 400 051
Scrip Code: 531213 Scrip Code: MANAPPURAM
Dear Madam/Sir
Sub: Unaudited Consolidated and Standalone Financial Results for the period ended September
30,2020
Pursuant to Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations,

2015 (“SEBI(LODR)”), we enclose herewith the Unaudited Consolidated and Standalone Financial
Results and Limited Review Report for the period ended September 30,2020. The figures were
reviewed by Audit Committee on November 04, 2020 and approved by the Board of Directors on
November 06, 2020.
We wish to inform you that the investor presentation and press release w.r.t Q2 FY20-21 results will be
uploaded on the website of the Company and the same is available under the tab:
https://www.manappuram.com/investors/quarterly-results.html
We request you to please take the same on your record.
Thanking You.
For Manappuram Finance Limited

MANOJKUM
Digitally signed by MANOJKUMAR V R
DN: c=IN, o=Personal, postalCode=680581,
st=Kerala,
serialNumber=ec0b07b2d06a85987aa84d48d23
AR V R 761b1c13f03d66989437cb6348bc1a592cc87,
cn=MANOJKUMAR V R
Date: 2020.11.06 13:02:56 +05'30'
Manoj Kumar V R
Company Secretary
Ph-+91 9946239999
Chartered Accountants
Indiabulls Finance Centre,
27th-32nd Floor, Tower 3,
Senapati Bapat Marg,
Elphinstone Mill Compound,
Elphinstone (W), Mumbai - 400 013,
Maharashtra, India.
Phone: +91 22 6185 4000

Fax: +91 22 6185 4501/4601
INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE

FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS

OF MANAPPURAM FINANCE
LIMITED
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of

MANAPPURAM FINANCE LIMITED (“the Company”), for the quarter and six months ended
September 30, 2020 (“the Statement”), being submitted by the Company pursuant to the
requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.
2. This Statement, which is the responsibility of the Company’s Management and approved by the
Company’s Board of Directors, has been prepared in accordance with the recognition and
measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial
Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013 read with
relevant rules issued thereunder and other accounting principles generally accepted in India.
Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review
Engagements (SRE) 2410 ‘Review of Interim Financial Information Performed by the
Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India
(ICAI). A review of interim financial information consists of making inquiries, primarily of the
Company’s personnel responsible for financial and accounting matters, and applying analytical
and other review procedures. A review is substantially less in scope than an audit conducted in
accordance with Standards on Auditing specified under section 143(10) of the Companies Act,
2013 and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
4. Based on our review conducted as stated in paragraph 3 above, nothing has come to our
attention that causes us to believe that the accompanying Statement, prepared in accordance
with the recognition and measurement principles laid down in the aforesaid Indian Accounting
Standard and other accounting principles generally accepted in India, has not disclosed the
information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it
is to be disclosed, or that it contains any material misstatement.
5. We draw attention to Note 9 to the Statement in which the Company describes the continuing
uncertainties arising from the COVID 19 pandemic.
Our conclusion on the Statement is not modified in respect of this matter.
For DELOITTE HASKINS & SELLS LLP

(Firm’s Registration No. 117366W/W-100018)
G. K. Subramaniam
Partner
(Membership No. 109839)
UDIN: 20109839AAAAXC3598
Place: Mumbai
Date: November 06, 2020
Indiabulls Finance Centre,
27th-32nd Floor, Tower 3,
Senapati Bapat Marg,
Elphinstone Mill Compound,
Elphinstone (W), Mumbai - 400 013,
Maharashtra, India.
Phone: +91 22 6185 4000

Fax: +91 22 6185 4501/4601
INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF

INTERIM CONSOLIDATED FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS

OF MANAPPURAM FINANCE
LIMITED
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of

MANAPPURAM FINANCE LIMITED (“the Parent”) and its subsidiaries (the Parent and its
subsidiaries together referred to as “the Group”), for the quarter and six months ended
September 30, 2020 (“the Statement”) being submitted by the Parent pursuant to the
requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.
2. This Statement, which is the responsibility of the Parent’s Management and approved by the
Parent’s Board of Directors, has been prepared in accordance with the recognition and
measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial
Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013 read with
relevant rules issued thereunder and other accounting principles generally accepted in India.
Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review
Engagements (SRE) 2410 “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of India
(ICAI). A review of interim financial information consists of making inquiries, primarily of
Parent’s personnel responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted in
accordance with Standards on Auditing specified under Section 143(10) of the Companies Act,
2013 and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under
Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended, to the extent applicable.
4. The Statement includes the results of the following entities:

I. Manappuram Finance Limited (the Parent)
II. Manappuram Home Finance Limited (Wholly owned subsidiary)
III. Asirvad Microfinance Limited (Subsidiary)
IV. Manappuram Insurance Brokers Limited (Wholly owned subsidiary)
V. Manappuram Comptech and Consultants Limited (Subsidiary)
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and
based on the consideration of the review report of other auditors referred in paragraph 7
below, nothing has come to our attention that causes us to believe that the accompanying
Statement, prepared in accordance with the recognition and measurement principles laid down
in the aforesaid Indian Accounting Standard and other accounting principles generally accepted
in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended,
including the manner in which it is to be disclosed, or that it contains any material
misstatement.
6. We draw attention to Note 9 to the Statement in which the Group describes the continuing
uncertainties arising from the COVID 19 pandemic.
Page 1 of 2
7. We did not review the interim financial results of one subsidiary included in the consolidated
unaudited financial results, whose interim financial results reflect total assets of Rs. 5,349.02
crore as at September 30, 2020, total revenues of Rs. 256.34 crore and Rs. 522.07 for the
quarter and six months ended September 30, 2020 respectively, total net loss after tax of Rs.
2.42 crore and Rs. 5.02 crore for the quarter and six months ended September 30, 2020
respectively and total comprehensive loss of Rs. 2.42 crore and Rs. 5.08 crore for the quarter
and six months ended September 30, 2020 respectively and net cash flows of Rs. 204.76 crore
for the six months ended September 30, 2020, as considered in the Statement. These interim
financial results have been reviewed by other auditor whose report have been furnished to us
by the Management and our conclusion on the Statement, in so far as it relates to the amounts
and disclosures included in respect of this subsidiary, is based solely on the report of the other
auditor and the procedures performed by us as stated in paragraph 3 above.
For DELOITTE HASKINS & SELLS LLP

(Firm’s Registration No. 117366W/W-100018)
G. K. Subramaniam
Partner
(Membership No.109839)
UDIN: 20109839AAAAXD9544
Place: Mumbai
Date: November 06, 2020
Page 2 of 2
Investors complaints status for the quarter ended 30.09.2020
Complaints
Pending at Complaints
the Disposed and Complaints
Beginning of Complaints resolved at the Unresolved
the Quarter Received During the end of the at the end of
SI Nature of Ended Quarter Ended Quarter the Quarter
No: Security 30.09.2020 30.09.2020 30.09.2020 30.09.2020
1 Equity 0 0 0 0
Privately
Placed
Debenture-
2 Retail 0 0 0 0
Private
Placement
Debenture
3 Institutional 0 0 0 0
Public Issue
4 NCD 3 5 8 0
Complaints
Registered
5 With Scores 1 1 1 1
Unsecured
Subordinated
6 Bond 0 2 2 0
Total 4 8 11 1
MANOJKUMAR V Digitally signed by MANOJKUMAR V R

DN: c=IN, o=Personal, title=1714,
R
pseudonym=d2f56eae54fd9c0724fe2747d5538d4da1d0ff5de630
ea61b751a6b3ab5f1f32, postalCode=680581, st=Kerala,
serialNumber=ec0b07b2d06a85987aa84d48d23761b1c13f03d66
989437cb6348bc1a592cc87, cn=MANOJKUMAR V R
Date: 2020.10.06 13:01:28 +05'30'
Manoj Kumar V R 06.10.2020

Valapad
Company Secretary
RATING RATIONALE
3 Dec 2019
Manappuram Finance Ltd
Brickwork Ratings Reaffirms BWR AA+ (Stable) ratings for the Bank Loan
Facilities and Non-Convertible Debentures aggregating to ₹ 8,003 Crores of
Manappuram Finance Ltd. (hereafter referred to as “MFL” or the Company)
Particulars:
Amount (₹ Cr) Rating*
Facility** Tenure Previous

Previous Present Present
(Jan 2019)
Fund based 7000 7000 Long Term BWR AA+ BWR AA+
Stable Stable
NCD 1003 1003 Long Term
Total 8003 8003 INR Eight Thousand and Three Crores Only
*Please refer to BWR website www.brickworkratings.com/ for definition of the ratings
** Details of Bank facilities/NCD/Bonds/Commercial Paper is provided in Annexure-I&II
RATING ACTION / OUTLOOK
The rating reaffirmation factors the experience and track record of “Manappuram” group and
established brand, considerable increase in consolidated AUM over the past 5 years, significant
improvement in the standalone earning indicators, diversified funding profile, comfortable
capitalization & gearing level, adequate liquidity position, the Company's strategic initiatives to
strengthen the core gold loan business while simultaneously diversifying into other synergistic
areas and the continuous evolvement in technology.
The rating continues to derive strength from the experienced & professional management of the
Company on a consolidated level, established track record of promoters and brand image of
Manappuram in financial sector. The rating is however constrained by the inherent risks
associated with NBFCs and geographical concentration risk.
Outlook: Stable - BWR believes the MFL’s business and Credit risk profile will be maintained
over the medium term. The ‘Stable’ outlook indicates a low likelihood of rating change over the
medium term.
www.brickworkratings.co Page 1 of
KEY RATING DRIVERS
Credit Strengths:
● Established track record of the group: Manappuram Finance Ltd, flagship company of
the “Manappuram” group founded by Late Shri V C Padmanabhan, is one of India’s
leading gold loans NBFCs engaged in providing finance against used household gold
ornaments since last 3 decades. Incorporated in 1992, the Company is promoted by Mr.
V.P. Nandakumar (current MD & CEO) whose family has been involved in gold loan
business since 1949. It has also ventured into housing loans, insurance broking and micro
finance through its subsidiaries.
● Sizeable AUM with diversified portfolio: MFL’s consolidated assets under

management has consistently grown in the past 5 years from Rs 9,594 crs in FY15 to Rs
19,438 Crs in FY19 witnessing a CAGR of ~15%. AUM has further grown to Rs 22,677
crs as on 30 Sep 2019. AUM is well diversified with Gold Loans constitutes 66.90%,
Microfinance - 20.80%, Housing - 2.68% , Vehicle finance - 5.81% and Corporate loan
& Others constituting 4.80% of Consolidated AUM as on 30 Sep 2019. Gold loan
portfolio has also grown to Rs 17,392 Crs in H1FY20 when compared to 12.962 Crs in
FY19.
● Strong and Sustained Asset Quality: MFL has always maintained a healthy asset
quality due to the adoption of stringent lending policies, technologically advanced loan
processing tools, adequate risk management policies in place and focus on improving
collection efficiency. On a standalone basis, as on 30 Sep 2019, the GNPA & NNPA
stood at 0.55% & 0.31% respectively (Gross NPA of 0.55% & Net NPA of 0.32% as on
31st Mar 2019) which is the lowest in the Gold Loan Industry.
● Comfortable capital adequacy: MFLs has maintained adequate capital adequacy which
stood at 22.70% as on 30 Sep 2019 which is well above the minimum prescribed levels of
15% by the regulators.
● Consistent Improvement in Earnings Profile: On a consolidated basis, for FY19, the

company has reported Net Income of Operations of Rs 2796.88 Crs and PAT of Rs
929.50 Crs when compared to Rs 2390.31 Crs and Rs 676.48 Crs respectively for FY18
witnessing a YoY growth of 17.03%. For H1FY20, the company has reported Net
Income of Operations of Rs 1656.09 Crs and PAT of Rs 679.88 Crs when compared to
Rs 1330.51 & PAT of Rs 423.99 Crs.
On a standalone basis, for FY19, the company has reported Net Income of Operations of
Rs 2400.43 Crs and PAT of Rs 790.45 Crs when compared to Rs 2132.40 Crs and Rs
689.60 Crs respectively for FY18 witnessing a YoY growth of 12.57%. For H1FY20, the
www.brickworkratings.co Page 2 of 10
company has reported Net Income of Operations of Rs 1518.92 Crs and PAT of Rs
556.48 Crs when compared to Rs 1148.20 & PAT of Rs 364.97 Crs.
● Adequate risk management & management information systems in place: MFL has
put in place adequate risk management systems. Branch employees have been trained to
appraise gold jewelry provided as security against loan by prospective borrowers. The
company has implemented systems for ensuring the gold security and reducing the
custodial risks, including highly secured vaults with dual control and insurance of gold.
All the branches are monitored by surveillance cameras. The core gold loan application
software, which was developed in-house by MFLs team, is used by the branches and is
linked to the financial software. Furthermore, all the branches are inter-connected which
helps the company to extract various reports for monitoring all the branches on a day-to-
day basis. The presence of adequate Information Technology and MIS ensures smooth
functioning of operations and helps the senior management in exercising effective
control of its operations.
Credit Risks:
● Inherent risks associated with NBFCs: Being a gold loan finance company, MFL is
exposed to inherent risks such as price fluctuation of Gold, operational risks, and severe
competition. Since the Company operates under highly regulated environment, it is also
exposed to policy changes.
● Geographical and Product concentration risk: MFLs loan portfolio is largely

concentrated with ~58% of total loans to southern states of India and ~65% of the loans
are gold loans which exposes the company to geographical and product concentration
risks. MFL has diversified in to into other synergistic products like Commercial Vehicle
loans, MFI loans through its subsidiary “Asirvad Microfinance Pvt Ltd”, Housing loans
through its subsidiary “Manappuram Home Finance Pvt Ltd” and Insurance broking
under its subsidiary “Manappuram Insurance Broker Pvt Ltd” however, these portfolios
are still at nascent stages.
ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA

BWR has taken into consideration both the standalone and consolidated financial profile of MFL
(wherein the financial performances of MFLs subsidiaries, Asirvad Microfinance Pvt Ltd,
Manappuram Home Finance Pvt Ltd and Manappuram Insurance Broker Pvt Ltd gets
consolidated) and applied and applied its rating methodology as detailed in the Rating Criteria
detailed below (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive: Substantial increase in AUM and profitability with sustained asset quality will be key
rating positives
Negative: Deterioration in asset quality by more than 2%, increase in gearing levels above 5x
and lower than expected profitability will be key rating sensitivities.
LIQUIDITY POSITION: Strong

Asset Liability Maturity profile demonstrates adequate liquidity with no cumulative mismatches
across various buckets. This is due to longer tenure of the borrowings as compared to that of
loans disbursed which is of short term in nature. The company also maintains undrawn bank
lines in excess of Rs 1200 Crs and Cash & Bank balances of Rs 13,676 Crs as on 31 Oct 2019
which provided additional liquidity cushion.
COMPANY PROFILE
Manappuram Finance Limited, formerly Manappuram General Finance and Leasing Limited, is
the Group’s flagship Company and was established in 1992 in Thrissur (Kerala). It is a
Systemically Important -Non-Deposit taking NBFC and is mainly engaged in providing retail
advances against Household Used Gold Jewellery. Manappuram is promoted by Mr. V P
Nandakumar whose family has been involved in gold loans since 1949. Promoter & Promoter
Group has a holding of 35.12 % as of 30 Sep 2019. It is listed on both NSE and BSE.
Mr. V P Nandakumar is the Managing Director and CEO of Manappuram Finance Limited. Mr.
Jagdish Capoor is the Chairman and Independent/ Non-Executive Director on the Board of MFL.
Besides him, the Board has six more Independent/ Non-Executive Directors and one Nominee
Director who are eminent people with vast experience in the financial sector. The Company has a
team of well-qualified and experienced professionals looking after credit, risk, marketing, audit
and other support functions.
MFL is the flagship company of the group mainly engaged in providing Loan against gold and
has diversified into other synergistic products like Commercial Vehicle loans, MFI loans through
its subsidiary “Asirvad Microfinance Pvt Ltd”, Housing loans through its subsidiary
“Manappuram Home Finance Pvt Ltd” and Insurance broking under its subsidiary “Manappuram
Insurance Broker Pvt Ltd”. It has established pan-India presence, with a strong distribution
network of 4,490 branches spread across 24 states and 4 union territories as of Sep 30 2019.
KEY FINANCIAL INDICATORS (in ₹ Cr) (Standlaone)
Key Parameters Units FY17 FY18 FY19
Result Type Audited Audited Audited
Consolidated AUM Rs in Crs 13,657 15,765 19,438
Gold Loan Portfolio Rs in Crs 11,125 11,735 12,962

Net Income from Operations Rs in Crs 2004.46 2132.40 2400.43
PAT Rs in Crs 726.03 689.60 790.45
GNPA % 2.02 0.70 0.55
NNPA % 1.72 0.32 0.32
CRAR % 26.12 26.98 23.65
TNW Rs in Crs 3,308 3,808 4,375
Gearing Times 3.28 2.69 2.91
KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: Nil
NON-COOPERATION WITH PREVIOUS RATING AGENCY IF ANY: Nil
RATING HISTORY
Sl. Instrument/
Current Rating (Aug 2018) Rating History
No. Facility
Amount
Type Rating Jan 2019 Aug 2018 June 2018 Jul 2017
(RsCrs)
Long
1. NCD 1000 - -
Term
BWR AA+
(Stable)
Long BWR AA+ BWR AA+ BWR AA BWR AA
2. NCD 3 (Stable) (Stable)
Term (Stable) (Stable)
Long
3 BLR 7000 - - -
Term
COMPLEXITY LEVELS OF THE INSTRUMENTS: Simple
For more information, visit www.brickworkratings.com/download/ComplexityLevels.pdf
Hyperlink/Reference to applicable Criteria
● General Criteria
● Banks & Financial Institutions
Analytical Contacts Investor Contacts
Rajat Bahl
Chief Analytical Officer & Head - Financial Sector
Ratings
Liena Thakur
B:+91 22 2831 1426, +91 22 2831 1439
Assistant Vice President - Corporate
[email protected]
Communications
+91 84339 94686
Sree Harsha [email protected]
Manager - Ratings B:
+91 80 4040 9940
Ext :361
[email protected]

ANNEXURE I
Details of Bank Facilities rated by BWR
Sl. No. Name of the Bank Type of Long Term Short Term Total
Facilities {(₹ Cr) (₹ Cr) (₹
Cr)
1 Andhra Bank Term Loan 400 120 520
Cash Credit 73.12 - 73.12
2 Federal Bank Term Loan 245 - 245
3 HDFC Bank Term Loan 581.65 - 581.65
4 IDBI Bank Term Loan 270 - 270
5 Karnataka Bank Term Loan 100 - 100
6 Orinetal Bank of Commerce Term Loan 320 - 320
7 Punjab National Bank Term Loan 950 - 950
8 South Indian Bank Cash Credit 4.86 - 4.86
9 State Bank of India Term Loan 1000 - 1000
Cash Credit 428.34 - 428.34
10 IndusInd Bank Term Loan 400 - 400
11 Syndicate Bank Term Loan 500 - 500
12 Bank of Baroda Term Loan 150 - 150
13 Catholic Syrian Bank Term Loan 56.25 - 56.25
14 UCO Bank Term Loan 100 - 100
15 QNB Term Loan 23 - 23
16 Canara Bank Term Loan 95 - 95
17 Shinhan Bank Term Loan 1.06 - 1.06
18 Indian Bank Term Loan 200 - 200
19 Corporation Bank Term Loan 500 - 500
20 Dhanlaxmi Bank Term Loan 33 - 33
Cash Credit 1 - 1
21 Woori Bank Term Loan 50 - 50
22 Bajaj Finance Ltd Term Loan 106.25 - 106.25
23 Yes Bank Cash Credit 200 - 200
Total Sanctioned 6,969.82
Total Proposed 30.18
Total Amount rated 7,000
Total Rupees Seven Thousand Crores only.

ANNEXURE II
INSTRUMENT (NCD) DETAILS
Instrument Issue Date Amount (Rs in Cr) Coupon Rate Maturity Date ISIN
(%) Particulars
20-Mar-2023 3.00 20-Mar-2023 INE522D07552
13%
NCD
29-Nov-18 27.80 3-Jan-20 INE522D07AG3
Zero Coupon
29-Nov-18 27.44 29-Nov-21 INE522D07AH1
9.60%
29-Nov-18 57.42 29-Nov-23 INE522D07AI9
10%
29-Nov-18 11.37 28-Nov-20 INE522D07AJ7
9.85%
29-Nov-18 21.75 29-Nov-21 INE522D07AK5
10%
29-Nov-18 30.00 29-Nov-23 INE522D07AL3
10.40%
29-Nov-18 12.28 28-Nov-20 INE522D07AM1
Zero Coupon
29-Nov-18 19.39 29-Nov-21 INE522D07AN9
Zero Coupon
29-Nov-18 14.80 29-Nov-23 INE522D07AO7
Zero Coupon
29-Nov-18 39.77 29-Nov-25 INE522D07AP4
Zero Coupon
6-Mar-19 15.31 6-Mar-22 INE522D07AU4
9.35%
6-Mar-19 28.50 6-Mar-24 INE522D07AV2
9.75%
6-Mar-19 16.60 6-Mar-22 INE522D07AW0
9.75%
6-Mar-19 20.54 6-Mar-24 INE522D07AX8
10.15%
6-Mar-19 17.47 6-Mar-22 INE522D07AY6
Zero Coupon
6-Mar-19 8.99 6-Mar-24 INE522D07AZ3
Zero Coupon
6-Mar-19 20.48 5-May-26 INE522D07BA4
Zero Coupon

ANNEXURE III
List of entities consolidated
Name of Entity % ownership Extent of Rationale for

consolidation consolidation
Asirvad Microfinance Ltd 93.33% Full Subsidiary
Manappuram Home Finance Ltd 100% Full Subsidiary
Manappuram Insurance Brokers 100% Full Subsidiary

Pvt Ltd
For print and digital media The Rating Rationale is sent to you for the sole purpose of dissemination
through your print, digital or electronic media. While it may be used by you acknowledging credit to
BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from
what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its
rationales for consideration or otherwise through any print or electronic or digital media.
About Brickwork Ratings :Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency,
accredited by RBI and empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings
and grading services. NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited
by IREDA & the Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork
Ratings has Canara Bank, a leading public sector bank, as its promoter and strategic partner. BWR has its
corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh,
Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
DISCLAIMER Brickwork Ratings (BWR) has assigned the rating based on the information obtained
from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable
steps to avoid any data distortion; however, it does not examine the precision or completeness of the
information obtained. And hence, the information in this report is presented “as is” without any express or
implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy
of any such information. The rating assigned by BWR should be treated as an opinion rather than a
recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses
incurred by users from any use of this report or its contents. BWR has the right to change, suspend or
withdraw the ratings at any time for any reasons
www.brickworkratings.co Page 10 of
Press
Manappuram Finance Limited

September 09, 2020
Ratings
Facilities Amount Rating1 Rating Action
(Rs. crore)
Long-term Bank Facilities CARE AA; Stable
6,044.39 Reaffirmed
(Double A; Outlook: Stable)
Short-term Bank CARE A1+
2,955.61 Reaffirmed
Facilities (A One Plus)
9,000.00
Total Bank Facilities (Rs. Nine thousand crore
only)
Non-Convertible CARE AA; Stable
100.00 Reaffirmed
Debentures – IV (Double A; Outlook: Stable)
972.20 Reaffirmed
Debentures – V (Double A; Outlook: Stable)
1,050.00 Reaffirmed
Debentures – VI (Double A; Outlook: Stable)
500.00 Reaffirmed
Debentures – VII (Double A; Outlook: Stable)
100.00 Reaffirmed
Debentures – VIII (Double A; Outlook: Stable)
250.00 Reaffirmed
Debentures – IX (Double A; Outlook: Stable)
125.00 Reaffirmed
Debentures - X (Double A; Outlook: Stable)
CARE A1+
Commercial Paper 4,000.00 Reaffirmed
(A One Plus)
7,097.20
(Rs. Seven thousand
Total Instrument
ninety seven crore and
twenty lakh only)
Details of instruments/facilities in Annexure-1
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities and debt instruments of Manappuram Finance Limited (MAFIL)
factor in long track record of operations and the established market position of MAFIL as one of the leading
players in the gold loan industry in India, experienced promoters & management team, healthy profitability
indicators, good asset quality, comfortable capitalisation levels, diversified resource profile and adequate risk
management & management information systems in place.
The ratings are, however, constrained by product concentration on a single asset class, exposure to price of
gold and geographical concentration of the loan portfolio. The ratings also take note of limited track record in
the vehicle & corporate loan portfolio.
Rating Sensitivities
Positive Factors: Factors that could, individually or collectively, lead to positive rating action/upgrade
 Increase in the scale of operations with improvement in geographical & product diversification along
with stable asset quality
Negative Factors: Factors that could, individually or collectively, lead to negative rating action/downgrade
 Weakening of asset quality parameters
 Weakening of capital adequacy levels
1
Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications.
Press
Detailed description of the key rating drivers

Key Rating Strengths
Long track record and established market position
MAFIL has an established track record of operations for more than 25 years in the gold loan financing segment
and has consequently established a strong brand image in the market. MAFIL is the second-largest gold loan
NBFC in India. The company’s consistent efforts in advertising and branding strategy have increased its brand
recall significantly amongst customers. As on March 31, 2020, MAFIL had 3,529 branches spread across India
with AUM of Rs.19,093 crore.
Experienced promoters and management team

The promoters have been in the gold loan business for more than six decades. The business was founded by
Mr V. C. Padmanabhan in 1949 and in 1986, Mr V. P. Nandakumar took over the business. Later in 1992, MAFIL
was incorporated to expand the group’s presence in gold loan business by opening branches pan India with
3,529 branches as on March 31, 2020. The day-to-day operations are looked after by a team of professionals
overseen by the Board which comprises majority of independent directors with extensive experience in the
NBFC sector. Mr Jagdish Capoor (former Deputy Governor, RBI and former Chairman of HDFC Bank) who had
joined the Board in July 2010, has been the Chairman since May 2012.
Healthy profitability
Overall portfolio grew by 26% during FY20 (refers to the period April 01 to March 31) aided by relatively high
growth majorly in Gold Loan Segment. Gold loan portfolio grew by 31% during FY20; on tonnage basis, gold
holding (pledged) grew by 7.2% from 67.5 tonnes as on March 31, 2019 to 72.4 tonnes as on March 31, 2020.
Vehicle finance portfolio witnessed a growth of 19% and NBFCs loan book de-grew by 37% in FY20 as the
company decided to reduce this loan book.
NIM has seen slight moderation from 14.48% in FY19 to 13.54% in FY20, mainly on the account of increase in
the cost of borrowings from 9.03% in FY19 to 9.35% in FY20. Yield on advances has also increased from 24.10%
in FY19 to 24.78% in FY20.
Operating expenses to average total assets decreased from 7.14% in FY19 to 5.68% in FY20 mainly with
decrease in security expenses. The company has rolled out cellular security vaults in about 3,524 branches,
resulting in decrease in security expenses; security costs declined to Rs.47 crore in FY20 from Rs.104 crore in
FY19. PPOP increased from Rs.1,244 crore in FY19 to Rs.1,765 crore during FY20. With credit costs remaining
lower at 0.41% in FY20 (PY: 0.16%) and reduction in corporate taxes, ROTA has increased to 5.96% in FY20
from 4.93% in FY19.
Good Asset Quality in gold loan business continues; Vehicle Finance asset quality witnessed moderation in
FY20
Due to shorter tenure, secured nature of the gold loans and timely auction, MAFIL was able to maintain asset
quality of gold loan book at comfortable levels. MAFIL reported GNPA and NNPA of 0.88% and 0.47% as on
March 31, 2020 as against GNPA and NNPA of 0.55% and 0.32% as on March 31, 2019. Net NPA to Net worth
stood at 2.65% as on March 31, 2020, as against 1.12% as on March 31, 2019. GNPA in vehicle finance book
stood at 6.7% on account of industry-wide impact and absence of collection in last few days of March due to
outbreak of Covid-19. As on June 30, 2020, GNPA and NNPA stood at 1.25% and 0.70%. The company has also
made increased provisions for the Vehicle finance portfolio during FY20 and Q1FY21.
The company has limited track record & low seasoning in new segments and performance through different
economic cycles is yet to be established in these segments.
Comfortable capitalization level

The capitalization level continues to be comfortable aided by healthy internal accruals over the last few years.
CAR and Tier 1 CAR as on March 31, 2020, stood at 21.74% and 21.41% as against 23.91% and 23.53% as on
March 31, 2019. Overall gearing as on March 31, 2020 stood at 3.32 times as against 2.96 times as on March
31, 2019. CAR is likely to remain comfortable over the medium term. CAR as on June 30, 2020, stood at
22.90%.
Adequate risk management & management information systems in place

MAFIL has put in place adequate risk management systems. Branch employees have been trained to appraise
gold jewellery provided as security against loan by prospective borrowers. The company has implemented
systems for ensuring the gold security and reducing the custodial risks, including highly secured vaults with
Press
dual control and insurance of gold. All the branches are monitored by surveillance cameras. The core gold loan
application software, which was developed in-house by MAFIL team, is used by the branches and is linked to
the financial software. Furthermore, all the branches are inter-connected which helps the company to extract
various reports for monitoring all the branches on a day-to-day basis. It is worthwhile to note that MAFIL has
developed app-based (web & mobile) application for re-pledge and closure of gold loans. The presence of
adequate Information Technology and MIS ensures smooth functioning of operations and helps the senior
management in exercising effective control of its operations.
Diversified resource profile

MAFIL has fairly diversified funding profile with access towards funding from banks and market instruments
like NCDs and Commercial paper. As on March 31, 2020, the company’s funding profile consisted of CC/WCDL
from banks at 39% of total borrowings (PY: 50%) of overall funding mix, followed by NCDs at 17% (PY: 12%),
term loans from banks at 17% (PY: 12%), ECBs at 15% (PY: Nil) and commercial paper at 11% (PY: 25%). During
FY20, there has been increase in the long-term borrowings in the form of NCDs, ECBs and term loans from
banks and reduction in short-term borrowings.
Key Rating Weaknesses

Product concentration of gold loans notwithstanding increase in share of non-gold loan segments in the past
four years
As on March 31, 2020, gold loans constituted around 89% of the portfolio as against 86% as on March 31 2019.
As a part of diversification strategy, during FY15, MAFIL has ventured into vehicle finance and other segments.
The vehicle finance portfolio stood at Rs.1,347 crore as on March 31, 2020, as against Rs.1,129 crore as on
March 31, 2019, and vehicle finance portfolio stood at Rs.1,259 crore as on June 30, 2020. The company also
built corporate loan portfolio wherein it lends only to NBFCs. MAFIL performs due diligence on these
companies on regular basis. In addition to in-house team, it also uses the service of well-established third party
for due diligence.
MAFIL has presence in microfinance and housing finance segments through its subsidiaries, namely, Asirvad
Microfinance Limited (AMFL; rated ‘CARE A+; Stable’) and Manappuram Home Finance Private Limited (MHFL;
rated ‘CARE AA-; Stable’). MHFL is a wholly-owned subsidiary of MAFIL, whereas MAFIL holds 93.33% in AMFL
as on March 31, 2020. MAFIL has been infusing equity into the subsidiaries on need basis. As on March 31,
2020, AMFL and MHFL has AUM of Rs.5,503 crore and Rs.630 crore, respectively. On consolidated basis, non-
gold loan business accounted for 33% of the portfolio as on March 31, 2020 (PY: 34%).
Geographical concentration
MAFIL has pan-India presence with its 3,529 branches as on March 31, 2020. Over the past few years, the gold
loans portfolio as a percentage of AUM in South India has been decreasing continuously. As on March 31,
2020, southern states constituted around 58% of the total portfolio (PY: 58%).
Liquidity: Adequate
The liquidity profile of MAFIL remained adequate with no cumulative mismatch in any of the time brackets in
ALM as on March 31, 2020, due to shorter tenure of loan and relatively longer tenure of the borrowings. As on
June 30, 2020, the company had cash and liquid investments of about Rs.3,287 crore. As on August 20, 2020,
the company also had un-availed lines of around Rs.2,215 crore (including unutilised CC/WCDL of Rs.2,152
crore), and the company has not availed moratorium from any of the lenders.
Analytical approach:
Standalone considering the likely support to subsidiaries.
Applicable Criteria
Criteria on assigning Outlook and Credit watch to Credit Ratings
CARE’s Policy on Default Recognition
Financial Ratios-Financial Sector
Criteria for Short Term Instruments
CARE's Rating Methodology for Non-Banking Finance Companies (NBFCs)
Rating Methodology: Factoring Linkages in Ratings
Press
About the Company

Manappuram Finance Limited (MAFIL) is an NBFC registered with RBI as non-deposit accepting loan company,
headquartered in Valapad, Kerala. MAFIL is promoted by Mr V.P. Nandakumar in 1992 and as on March 31,
2020, the promoters’ stake in MAFIL stood at 35.04%. The other major stake holders of MAFIL are Quinag
Acquisition (Fpi) Ltd (9.91%), DSP Small cap Fund (5.23%), Baring India Private Equity (3.59%), Barclays
Merchant Bank (2.92%) and the rest is held by FIIs.
The company offers loan against used jewellery/ gold ornaments and it constitutes around 90% of AUM as on
June 30, 2020. During FY15, the company has ventured into vehicle financing and it constitutes 6% of AUM as
on June 30, 2020. Rest of the AUM consists majorly of corporate NBFC loans and it stood at 3% as on June 30,
2020, respectively. The company has AUM of Rs.19,093 crore as on March 31, 2020 and has AUM of Rs.19,680
crore as on June 30, 2020.
Brief Financials (Rs. crore) FY19 (A) FY20 (A)

Total income 3427 4352
PAT 790 1230
Interest coverage (times) 2.17 2.19
Total Assets 17563 23722
Net NPA (%) 0.32 0.88
ROTA (%) 4.93 5.96
A:Audited
Status of non-cooperation with previous CRA

Not Applicable
Any other information
Not Applicable
Rating History for last three years: Please refer Annexure-2
Annexure-1: Details of Instruments/Facilities
Name of the ISIN Date of Coupon Maturity Size of the Rating

Instrument Issuance Rate Date Issue assigned
(Rs. crore) along with
Rating
Outlook
Fund-based - LT- CARE AA;
- - - June 2023 1769.39
Term Loan Stable
Fund-based - ST-
Working Capital - - - - 2955.61 CARE A1+
Demand loan
Fund-based - LT- CARE AA;
- - - - 4275.00
Cash Credit Stable
Debentures-Non
CARE AA;
Convertible INE522D07AH1 Nov 29, 2018 9.60% Nov 29, 2021 27.44
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible NE522D07AI9 Nov 29, 2018 10.00% Nov 29, 2023 57.42
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AJ7 Nov 29, 2018 9.85% Nov 28, 2020 11.37
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AK5 Nov 29, 2018 10.00% Nov 29, 2021 21.75
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AL3 Nov 29, 2018 10.40% Nov 29, 2023 30.00
Stable
Debentures-V
Press Release

Rating
Outlook
Debentures-Non
Zero CARE AA;
Convertible INE522D07AM1 Nov 29, 2018 Nov 28, 2020 12.28
Coupon Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible INE522D07AN9 Nov 29, 2018 Nov 29, 2021 19.39
Coupon Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible INE522D07AO7 Nov 29, 2018 Nov 29, 2023 14.80
Coupon Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible INE522D07AP4 Nov 29, 2018 Nov 29, 2025 39.77
Coupon Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AU4 Mar 06, 2019 9.35% Mar 06, 2022 15.31
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AV2 Mar 06, 2019 9.75% Mar 06, 2024 28.50
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AW0 Mar 06, 2019 9.75% Mar 06, 2022 16.60
Stable
Debentures-V
Debentures-Non
CARE AA;
Convertible INE522D07AX8 Mar 06, 2019 10.15% Mar 06, 2024 20.54
Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible NE522D07AY6 Mar 06, 2019 Mar 06, 2022 17.47
Coupon Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible INE522D07AZ3 Mar 06, 2019 Mar 06, 2024 8.99
Coupon Stable
Debentures-V
Debentures-Non
Zero CARE AA;
Convertible INE522D07BA4 Mar 06, 2019 May 05, 2026 20.48
Coupon Stable
Debentures-V
Debentures-Non
Convertible CARE AA;
- - - - 610.08
Debentures-V Stable
(Proposed)
Debentures-Non
INE522D07BF3 Feb 14, 2020 9.25% Feb 14, 2023 425.00
Debentures IV & Stable
VI
Debentures-Non
CARE AA;
Convertible INE522D07BG1 Feb 14, 2020 9.25% Feb 14, 2022 725.00
Stable
Debentures - VI
Debentures-Non
CARE AA;
Convertible INE522D07B17 May 08, 2020 9.00% May 08, 2023 100.00
Stable
Debentures-VII
Debentures-Non
INE522D07BJ5 Jun 01, 2020 9.10% Jun 01, 2023 500.00
Debentures VII & Stable
VIII
Press Release

Rating
Outlook
Debentures-Non
CARE AA;
Convertible INE522D07BK3 Jun 12, 2020 8.75% Dec 12, 2021 250.00
Stable
Debentures - IX
Debentures-Non
CARE AA;
Convertible INE522D07BN7 Jul 09, 2020 9.50% Jul 09, 2030 125.00
Stable
Debentures - X
7 days to 1
Commercial Paper - - 4000.00 CARE A1+
year
Annexure-2: Rating History of last three years
Sr. Name of the Current Ratings Rating history

No. Instrument/Bank Type Amount Rating Date(s) & Date(s) & Rating(s) Date(s) & Date(s) &
Facilities Outstanding Rating(s) assigned in 2019- Rating(s) Rating(s)
(Rs. crore) assigned in 2020 assigned in assigned in
2020-2021 2018-2019 2017-2018
1. Debentures-Non LT - - - 1)Withdrawn 1)CARE 1)CARE
Convertible (05-Jul-19) AA; AA;
Debentures Stable Stable
(06-Jul- (14-Aug-
18) 17)
2. Fund-based - LT- LT 1769.39 CARE 1)CARE 1)CARE AA; 1)CARE 1)CARE

Term Loan AA; AA; Stable AA; AA;
Stable Stable (10-Sep-19) Stable Stable
(28-Apr- 2)CARE AA; (06-Jul- (14-Aug-
20) Stable 18) 17)
(05-Jul-19)
3)CARE AA;
Stable
(19-Jun-19)
3. Fund-based - ST- ST 2955.61 CARE 1)CARE 1)CARE A1+ 1)CARE 1)CARE

Working Capital A1+ A1+ (10-Sep-19) A1+ A1+
Demand loan (28-Apr- 2)CARE A1+ (06-Jul- (14-Aug-
20) (05-Jul-19) 18) 17)
3)CARE A1+
(19-Jun-19)
4. Fund-based - LT- LT 4275.00 CARE 1)CARE 1)CARE AA; 1)CARE 1)CARE

Cash Credit AA; AA; Stable AA; AA;
Stable Stable (10-Sep-19) Stable Stable
(28-Apr- 2)CARE AA; (06-Jul- (14-Aug-
20) Stable 18) 17)
(05-Jul-19)
3)CARE AA;
Stable
(19-Jun-19)

Press Release

(06-Jul- (14-Aug-
18) 17)

(06-Jul- (14-Aug-
18) 17)
7. Commercial ST 4000.00 CARE - 1)CARE A1+ 1)CARE 1)CARE

Paper A1+ (10-Sep-19) A1+ A1+
2)CARE A1+ (06-Jul- (11-Sep-
(05-Jul-19) 18) 17)
8. Debentures-Non LT 100.00 CARE 1)CARE 1)CARE AA; 1)CARE -

Convertible AA; AA; Stable AA;
Debentures Stable Stable (05-Jul-19) Stable
(13-Aug- (06-Jul-
20) 18)
9. Debentures-Non LT 972.20 CARE 1)CARE 1)CARE AA; 1)CARE -

Convertible AA; AA; Stable AA;
Debentures Stable Stable (05-Jul-19) Stable
(13-Aug- (21-Aug-
20) 18)
10. Debentures-Non LT 1050.00 CARE - 1)CARE AA; - -

Convertible AA; Stable
Debentures Stable (11-Feb-20)
11. Debentures-Non LT 500.00 CARE 1)CARE - - -

Convertible AA; AA;
(30-Apr-
20)

Convertible AA; AA;
(28-May-
20)

Convertible AA; AA;
(10-Jun-
20)

Convertible AA; AA;
(08-Jul-
20)
Press Release
Annexure 3: Complexity level of various instruments rated for this company

Sr. Name of the Instrument Complexity Level
No.
1. Commercial Paper Simple
2. Debentures-Non Convertible Debentures Simple
3. Fund-based - LT-Cash Credit Simple
4. Fund-based - LT-Term Loan Simple
5. Fund-based - ST-Working Capital Demand loan Simple
Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of
complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators
or others are welcome to write to [email protected] for any clarifications.
Contact us
Media Contact
Mr Mradul Mishra
Contact no. – +91-22-6837 4424
Email ID: [email protected]
Analyst Contact
Mr P Sudhakar
Contact no. - 044-2850 1000
Relationship Contact
Mr V Pradeep Kumar
Contact no. : 044-2850 1000
About CARE Ratings:

CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the
leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI)
and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI).
CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE
Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various
requirements and assists the investors to form an informed investment decision based on the credit risk and
their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical
expertise backed by the methodologies congruent with the international best practices.
Disclaim
er
CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated
instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank
facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor.
CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on
information obtained from sources believed by it to be accurate and reliable. CARE does not, however,
guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors
or omissions or for the results obtained from the use of such information. Most entities whose bank
facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank
facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with
the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia,
based on the capital deployed by the partners/proprietor and the financial strength of the firm at present.
The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in
by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not
responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating.
CARE’s ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument,
which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are
**For detailed Rationale Report and subscription information, please contact us at www.careratings.com
Rating https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/
Rating Rationale
September 30, 2020 | Mumbai
Manappuram Finance Limited

'CRISIL AA/Stable' assigned to NCD
Rating Action
Total Bank Loan Facilities Rated Rs.5000 Crore
Long Term Rating CRISIL AA/Stable (Reaffirmed)
Short Term Rating CRISIL A1+ (Reaffirmed)
Rs.1500 Crore Non Convertible Debentures CRISIL AA/Stable (Assigned)

Rs.300 Crore Non Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Non Convertible Debentures Aggregating Rs.1165.05 Crore CRISIL AA/Stable (Reaffirmed)
Rs.250 Crore Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAr/Stable (Reaffirmed)
Rs.250 Crore Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAr/Stable (Reaffirmed)
Rs.4000 Crore Commercial Paper CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale
CRISIL has assigned its 'CRISIL AA/Stable' rating to Rs 1500 crore non-convertible debentures of Manappuram Finance Limited (MAFIL; part of the Manappuram group). CRISIL has also
reaffirmed its ratings on the bank facilities and other debt instruments at 'CRISIL AA/CRISIL PP-MLD AAr/Stable/CRISIL A1+'.
The ratings continue to factor in MAFIL's healthy asset quality, steady gold loan business and diversity in other asset classes, and strong profitability and return on assets. MAFIL has maintained healthy
asset quality over the years, as reflected in quarter-end gross non-performing assets (GNPAs) of 0.5-1% for the gold loan portfolio over the past eight quarters, backed by strong collection efficiency.
MAFIL has maintained steady asset quality at the consolidated level while diversifying its business into other asset classes. At the consolidated level, the GNPAs were 1.19% as on March 31, 2020 and
1.25% for the quarter ended June 30, 2020.
The non-gold loan portfolio (microfinance, vehicle finance and housing finance) accounted for around 30% of the total portfolio as on June 30, 2020 (33% as on March 31, 2020), against 19% as on
March 31, 2017. Furthermore, all these businesses were profitable in fiscal 2020. The overall profitability has remained strong with consolidated return on managed assets (RoMA) of 5.6% during
fiscal 2020.
While a larger proportion of borrowing comprised funding lines from banks and financial institutions (55%), the company's resource profile was diversified across avenues such as NCDs and
subordinated debt (22%), commercial paper (CP; 9%), and external commercial borrowing (ECBs; 14%) as on June 30, 2020.
In the non-gold finance portfolio, the microfinance business accounted for Rs 5,038 crore as on June 30, 2020. The other two segments, vehicle finance and housing finance, had assets under
management (AUM) of Rs 1,270 crore and Rs 627 crore as on June 30, 2020, respectively. The continuous broad basing of non-gold asset classes beginning 2015 has reduced the risk of monoline
business and associated growth challenges.
The ratings continue to reflect the company's established market position in the gold finance business, which accounts for around 70% of the loan portfolio. The ratings also factor in sound capitalisation,
reflected in consolidated networth of Rs 6,037 crore and low gearing of 4.0 times as on June 30, 2020. Profitability remains strong driven by high gross spreads and low credit cost, while the funding
profile is expected to remain stable. These strengths are partially offset by high operating cost in the gold and microfinance businesses, geographical concentration of operations and the associated risks,
and potential challenges associated with the non-gold product segments.
The nationwide lockdown to contain the spread of Covid-19 will have a near-term impact on disbursements and collections of non-banking financial companies (NBFCs). While the lockdown has been
lifted, any delay in return to normalcy will put pressure on collections and asset quality. Additionally, any change in the payment discipline of borrowers can affect delinquency levels. However, for
MAFIL, around 70% of the consolidated loan book is in the gold segment. Moreover, within the gold segment, the portfolio loan to value (LTV) is comfortable due to higher gold prices. Hence, timely
auction will ensure that credit losses are negligible even if the company faces delinquencies. For the balance 30% of the portfolio, asset quality performance will be a key monitorable, especially in the
microfinance segment.
On the liability side, the Reserve Bank of India (RBI) had announced regulatory measures under the Covid-19 - Regulatory Package, whereby lenders were permitted to grant moratorium on bank loans
which was further extended by three months till August 31, 2020. However, MAFIL had not availed the moratorium from any of its lenders.
In terms of liquidity, the company's liquidity position remains strong with liquid balance of Rs 3,989 crore as on September 15, 2020 (including cash and liquid investments of Rs 1,856 crore and
unutilized CC/WCDL limit of Rs 2133 crore). Liquidity cover for debt obligations arising over September and October 2020, without factoring in any roll over or incremental collections continues to
remain adequate at over 1 time. However, the company has been able to roll over/ raise facilities and has also received other sanctions over the last 5 months.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MAFIL and its subsidiaries, Asirvad Microfinance Ltd (Asirvad), Manappuram Home Finance Ltd
(MAHOFIN) and Manappuram Insurance Brokers Pvt Ltd. This is because all the companies, collectively referred to as the Manappuram group, have significant financial, managerial and operational
linkages.
Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.
Key Rating Drivers & Detailed Description

Strengths:
*Established market position in the gold finance business
The family of the promoter, Mr V P Nandakumar, has been in the gold-loan business for more than 60 years. Based on this industry experience, the company has designed an appropriate assessment and
underwriting methodology. Assessing the purity of gold, fixing the sum that can be lent against a gram of gold, and determining appropriate LTV ratios are critical aspects in the assessment process.
The company has a strong brand and reputation in south India (particularly Kerala and Tamil Nadu). Reputation and trust play a significant role in this segment as these give the customer an assurance of
getting back personal gold ornaments once the loan is repaid. After shifting towards shorter tenure gold loans of three months in 2015 to de-risk the portfolio from sharp fluctuations in gold prices, the
company has witnessed stability in business with an increase in customer base and gold holdings. The company has also seen an increase in the re-pledging of gold by existing customers, indicating
higher customer retention. Delinquencies have also reduced leading to fewer auctions.
* Sound capitalisation
The consolidated networth was Rs 6,037 crore and gearing was 4.0 times as on June 30, 2020. Large accretion to networth and moderation in gold loan growth in the past two fiscals resulted in a healthy
standalone capital adequacy ratio of 22.9% as on June 30, 2020. Lower asset-side risk (security of gold, which is liquid and is in the lender's possession) also supports capitalisation. AUM in the gold
loan segment is expected to grow at a steady rate over the medium term. Other segments (microfinance, housing finance and vehicle finance) have a relatively small scale. CRISIL understands
that the group intends to cap its capital allocation to the microfinance segment at 10% due to the unsecured nature of business, and therefore, will look for external investors for the segment in the
medium term. Therefore, despite continuation of rapid growth in the microfinance segment, the consolidated gearing is not expected to exceed 5 times over the medium term, though this will remain a
key rating monitorable.
* Strong profitability driven by high gross spreads and low credit cost
Profitability has remained strong with a consolidated RoMA of 4.6% for the quarter ended June 30, 2020 (5.6% during fiscal 2020), driven by the large profit generated by the gold loan and MFI
businesses. The gold loan segment reported profit of Rs 1,180 crore in fiscal 2020, up from Rs 768 crore in fiscal 2019. The profitability has been sustained due to steady reduction in operating
expenses and sustained focus on collection. The microfinance segment reported a profit of Rs 235 crore during fiscal 2020 against Rs 132 crore in fiscal 2019. The home finance segment, in its
fourth year of operations, achieved breakeven with a profit of Rs 3 crore in fiscal 2019 (Rs 11 crore in fiscal 2020). For the quarter ended June 30, 2021, gold loan segment reported profit of Rs 369
crore while microfinance segment reported marginal loss of Rs 2.6 crore due to special covid-19 provisioning of Rs 75crore provided during the quarter.
The consolidated yield increased to 23.9% during Q1 fiscal 2021 (23.4% in fiscal 2020) from 21.7% in fiscal 2018 aided by the microfinance and home loan portfolio. Operating cost reduced due to the
benefits of operating leverage in fiscal 2020 with a year-on-year portfolio growth of 30% in fiscal 2020 against 23% a year earlier. Ability to maintain yields and limit operating cost will be critical for
stability in profitability. Furthermore, in wake of Covid-19, the company is expected to have higher overdues during the first quarter of fiscal 2021 especially in the microfinance segment. Therefore,
ability to restrict credit costs in both gold and non-gold finance segments will remain a key rating monitorable.
* Stable funding profile

As on March 31, 2020, the company's consolidated borrowing (including off balance sheet funding through securitisation and ECBs) from banks (public and private) and financial institutions stood at
around 63%; significantly higher compared to 12% as on March 31, 2019. During the same period, the share of CP has reduced significantly to 7.2% as compared to 21.45% a year ago. Because of its
legacy and highly secured asset class, MAFIL was able to roll over existing bank lines/CP and continue to raise fresh funds from diversified sources. Between April 1 and September 15, 2020, the
company raised fresh borrowing around Rs 3,198 crore that included Rs 665 crore through term loans/WCDL, Rs 2,533 crore through private placement of NCDs out of which Rs 600 crore and Rs 615
crore under TLTRO and Partial guarantee schemes respectively. The standalone cost of borrowing (yearly average) was 9.1% during fiscal 2020 (8.8% during fiscal 2019). The consolidated cost of
borrowing (yearly average) increased to 9.9% during fiscal 2020 (9.5% in fiscal 2019). For the quarter ended June 30, 2020, the consolidated cost of borrowing stood at 9.9%.
Weaknesses
* High operating cost in the gold and microfinance businesses
The nature of the gold loan business results in high operating cost. With a large network of 4,616 branches as on June 30, 2020, the company incurs substantial branch operating cost as proximity to
the customer plays a key role in gold loan financing. Additionally, the company incurs high security cost to ensure the safety of the gold ornaments. To reduce cost per branch, the company is taking
steps to increase the gold AUM per branch, which has improved consistently over the years. Though still low at Rs 5.5 crore per branch in Q1 fiscal 2021 (Rs 4.8 crore per branch in fiscal 2020), it has
increased from Rs 3.8 crore per branch in fiscal 2019. The company has taken steps to shift customers towards online gold loans to reduce the staff cost at branches. The online gold loan proportion
increased to 63% of the gold AUM in Q1 fiscal 2021 (48% of the gold loan AUM in fiscal 2020) from 39% in fiscal 2019.
On a standalone basis, the operating cost reduced to 5.7% in fiscal 2020 from 7.2% in fiscal 2019. The company has been taking steps to cross-sell other asset segments and use the existing branch
network to reduce operating cost. As a result, the consolidated operating cost reduced to 5.6% in fiscal 2020 from 7.0% in fiscal 2019. In the microfinance business, the AUM per branch,
though low at around Rs 5.3 crore as on March 31, 2020, has increased from Rs 2.6 crore as on March 31, 2017. The operating cost is expected to benefit from operating leverage as the portfolio scales
up.
* Geographical concentration in operations and the associated risks

Operations have significant regional concentration compared to large asset-financing NBFCs; South India accounted for 58% of total AUM as on June 30, 2020. Moreover, there is susceptibility to
regulatory risks related to revenue concentration in a single asset class (gold-loan financing), which accounts for 83% of revenue. Though the company has ventured into the vehicle finance, affordable
housing finance and microfinance segments, these accounted for 30% of the total portfolio and around 17% of revenue as on June 30, 2020. In view of the large gold loan book (70% of the total
portfolio) and the presence of the gold loan business mainly in South India, revenue is likely to remain concentrated geographically and in terms of asset class over the medium term.
* Potential challenges associated with non-gold loan segments

The non-gold segments accounted for 30% of the overall portfolio as on June 30, 2020 (33% as on March 31, 2020). While the company has managed to grow these businesses and increase the
segmental share over the past two years, potential challenges linked to seasoning of the loan book and asset quality remain. The profitability of the microfinance segment was significantly affected by
increased credit cost during fiscal 2018 in the aftermath of demonetisation. Also, the housing finance portfolio is not well seasoned. A portion of the vehicle finance portfolio has witnessed a full
seasoning cycle and has seen some stability. However, given that the vehicle finance segment has entered new asset classes such as two-wheeler finance, asset quality as the portfolio scales up will
remain a key monitorable. The collection efficiency in the microfinance and housing finance portfolios corrected in fiscal 2019. Nevertheless, managing the asset quality and credit cost over the long run
will be critical.
With respect to the impact of Covid-19, most of the smaller segments that the company operates in'micro, small and medium enterprise (MSME) finance, home loans and micro finance'could witness
challenges, especially in the salaried and self-employed segment, wherein income streams of borrowers is likely to be affected given the challenging macroeconomic environment. Collections across
most of these segments dropped in April and May. However, the group is taking steps to improve collections in the non-gold businesses by engaging and reaching out to the borrowers. From a longer-
term perspective, as growth within these segments has been limited so far, their asset quality and profitability will be key monitorables.
Gold loan companies run the risk of applicability of Kerala Money Lenders Act, 1958, for NBFCs in Kerala. The applicability of the Act is contingent on the decision of the Supreme Court. If applied,
lending rates could be impacted and operating expenditure will increase due to the requirement to register each branch with local authorities in Kerala. As 7% of the gold loan portfolio and 15% of the
company's branches are in Kerala, this remains a key rating monitorable.
Liquidity Strong
The company's liquidity remains strong, with liquid balance of Rs 3,989 crore as on September 15, 2020 (including cash and liquid investments of Rs 1,856 crore and unutilized CC/WCDL limit of Rs
2133 crore). Liquidity cover for debt obligations arising over September and October 2020, without factoring in any roll over or incremental collections continues to remain adequate at over 1 time.
However, the company has been able to roll over/ raise facilities and has also received other sanctions over the last 5 months. MAFIL has not availed of the moratorium from any of its lenders
under RBI's Covid-19 Regulatory Package.
Outlook: Stable
CRISIL believes MAFIL's capitalisation and asset quality will remain strong supported by its gold loan business. The strong earnings will also provide support as the company diversifies into
other asset classes and scales up its non-gold business.
Rating Sensitivity Factors

Upward factors
* Diversification into non-gold secured asset classes and increase in their AUM share to over 40% without impairing asset quality
* Demonstrated ability to profitably scale up the housing and vehicle finance businesses significantly on standalone basis while maintaining asset quality
Downward factors
* Increase in consolidated gearing to over 5 times
* Steep decline in interest collection in the gold loan business or deterioration in asset quality or profitability in the non-gold loan segments.
About the Company
Incorporated in July 1992 and promoted by Mr V P Nandakumar, MAFIL is the flagship company of the Manappuram group. It is a non-deposit-taking NBFC that provides finance against personal gold
ornaments. It had 4,380 branches across India as on March 31, 2019. The company went public in August 1995, with shares listed on the stock exchanges of Chennai, Kochi and Mumbai (Bombay Stock
Exchange and National Stock Exchange). Over the past three years, the Manappuram group has diversified into other businesses such
as microfinance, vehicle finance, loans against property and affordable housing finance. It also entered the insurance broking business.
The overall AUM of Rs 25,346 crore as on June 30, 2020, includes gold loan (70%), microfinance (20%), commercial vehicle finance (5%), housing (2%) and lending to other NBFCs (3%). The gold
loan portfolio is diversified across 28 states and Union Territories, while the microfinance, commercial vehicle and housing finance portfolios are diversified across 23, 22 and 9 states, respectively.
For fiscal 2020, consolidated profit after tax (PAT) was Rs 1,480 crore on total income of Rs 5,551 crore, against a PAT of Rs 948 crore on total income of Rs 4242 crore for fiscal 2019. For Q1
fiscal 2021, company reported consolidated PAT was Rs 368 crore on total income of Rs 1,516 crore.
Key Financial Indicators of MFL - Consolidated

As on/for the period ended June-2020 March-2020 March-2019
Total managed assets# Rs crore 32,786 30,987 22,115
Total income Rs crore 1,516 5,551 4242
Profit after tax Rs crore 368 1,480 948
Gross NPA@ % 1.25 0.9 0.5
Adjusted gearing# Times 4.0 3.8 3.3
Return on managed assets# % 4.6 5.6 4.7
#Including off balance sheet assets,
@Standalone
Any other information: Not applicable
Note on complexity levels of the rated instrument:

CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details
on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)

Date of Coupon Maturity Issue size Complexity
ISIN Name of instrument Rating
allotment Rate (%) Date (Rs.Crore) Level
NA Non-Convertible Debentures^ NA NA NA 1500 Simple CRISIL AA/Stable
NA Non-Convertible Debentures^ NA NA NA 300 Simple CRISIL AA/Stable
INE522D07BV0 Non-Convertible Debentures^ 30-Sep-20 7.35% 30-Mar-22 50 Simple CRISIL AA/Stable
INE522D07BU2 Long Term Principal Protected Market Linked Debentures 07-Sep-20 8.10% 07-Mar-23 100 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BT4 Long Term Principal Protected Market Linked Debentures 20-Aug-20 8.45% 06-Feb-23 150 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BS6 Non-Convertible Debentures 19-Aug-20 8.35% 18-Feb-22 100 Simple CRISIL AA/Stable
INE522D07BQ0 Non-Convertible Debentures 31-Jul-20 8.35% 31-Jan-22 335 Simple CRISIL AA/Stable
INE522D07BP2 Non-Convertible Debentures 21-Jul-20 8.50% 21-Jul-22 250 Simple CRISIL AA/Stable
NA Long Term Principal Protected Market Linked Debentures^ NA NA NA 2 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BO5 Long Term Principal Protected Market Linked Debentures 16-Jul-20 9.00% 24-Jun-22 70 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BO5 Long Term Principal Protected Market Linked Debentures 10-Jul-20 9.00% 24-Jun-22 178 Highly complex CRISIL PP-MLD AAr/Stable
INE522D07BM9 Non-Convertible Debentures 09-Jul-20 8.75% 09-Jan-22 225 Simple CRISIL AA/Stable
INE522D07BL1 Non-Convertible Debentures 23-Jun-20 8.75% 23-Dec-21 150 Simple CRISIL AA/Stable
INE522D07BH9 Non-Convertible Debentures 27-Mar-20 9.25% 27-Mar-23 200 Simple CRISIL AA/Stable
INE522D07BE6 Non-Convertible Debentures 31-Dec-19 9.75% 31-Dec-21 350 Simple CRISIL AA/Stable
INE522D07BN7 Non-Convertible Debentures 09-Jul-20 9.50% 09-Jul-30 125 Simple CRISIL AA/Stable
INE522D07BB2 Non-Convertible Debentures 27-Sep-19 10.50% 27-Sep-22 215 Simple CRISIL AA/Stable
INE522D07BC0 Non-Convertible Debentures 07-Nov-19 9.75% 07-Nov-22 250 Simple CRISIL AA/Stable
INE522D07BD8 Non-Convertible Debentures 18-Nov-19 9.75% 18-Nov-22 200 Simple CRISIL AA/Stable
INE522D07AF5 Non-Convertible Debentures 31-Jul-18 9.50% 31-Jul-21 50.5 Simple CRISIL AA/Stable
INE522D07AE8 Non-Convertible Debentures 29-Jun-18 9.50% 29-Jun-21 199.5 Simple CRISIL AA/Stable
INE522D07AD0 Non-Convertible Debentures 30-Oct-17 9% 30-Oct-20 200 Simple CRISIL AA/Stable
INE522D07834 Non-Convertible Debentures 18-Oct-14 Zero Coupon 18-Jan-21 15.1 Simple CRISIL AA/Stable
NA Commercial Paper NA NA 7-365 days 4000 Simple CRISIL A1+
NA Proposed Long Term Bank Loan Facility NA NA NA 6.25 NA CRISIL AA/Stable
NA Term Loan NA NA 28-Jun-21 50 NA CRISIL AA/Stable
NA Term Loan NA NA 08-Jul-21 87.5 NA CRISIL AA/Stable
NA Term Loan NA NA 30-Sep-22 400 NA CRISIL AA/Stable
NA Term Loan NA NA 22-Mar-22 225 NA CRISIL AA/Stable
NA Term Loan NA NA 28-Jan-22 56.25 NA CRISIL AA/Stable
NA Working Capital Demand Loan NA NA NA 3495 NA CRISIL AA/Stable
NA Cash Credit/ Overdraft facility NA NA NA 660 NA CRISIL AA/Stable
NA Bank Guarantee NA NA NA 20 NA CRISIL A1+
^Yet to be issued
Annexure - List of Entities Consolidated

Extent of
Entity consolidated Rationale for consolidation
consolidation
Asirvad Microfinance Ltd Full Subsidiary
Manappuram Home Finance Ltd Full Subsidiary
Manappuram Insurance Brokers Pvt Ltd Full Subsidiary
Annexure - Rating History for last 3 Years

Current 2020 (History) 2019 2018 2017 Start of 2017
Outstanding
Instrument Type Rating Date Rating Date Rating Date Rating Date Rating Rating
Amount
Commercial Paper ST 4000.00 CRISIL A1+ 14-08-20 CRISIL A1+ 24-12-19 CRISIL A1+ 17-08-18 CRISIL A1+ 08-12-17 CRISIL A1+ --
11-08-20 CRISIL A1+ 19-09-19 CRISIL A1+ 20-07-18 CRISIL A1+
16-06-20 CRISIL A1+

19-03-20 CRISIL A1+
08-01-20 CRISIL A1+
Long Term Principal Protected 500.00 CRISIL PP-MLD CRISIL PP-MLD
LT 14-08-20 -- -- -- --
Market Linked Debentures 30-09-20 AAr/Stable AAr/Stable
CRISIL PP-MLD
11-08-20
AAr/Stable
CRISIL PP-MLD
13-07-20
AAr/Stable
CRISIL PP-MLD
06-07-20
AAr/Stable
4715.05 CRISIL CRISIL CRISIL CRISIL CRISIL CRISIL
Non Convertible Debentures LT 14-08-20 24-12-19 17-08-18 08-12-17
30-09-20 AA/Stable AA/Stable AA/Stable AA-/Positive AA-/Stable AA-/Stable
CRISIL CRISIL CRISIL CRISIL
11-08-20 19-09-19 20-07-18 25-10-17
AA/Stable AA/Stable AA-/Stable AA-/Stable
CRISIL CRISIL CRISIL CRISIL
13-07-20 10-09-19 06-07-18 04-10-17
AA/Stable AA/Stable AA-/Stable AA-/Stable
CRISIL CRISIL CRISIL
06-07-20 30-08-19 28-06-18
AA/Stable AA/Stable AA-/Stable
CRISIL
16-06-20
AA/Stable
CRISIL
19-03-20
AA/Stable
CRISIL
08-01-20
AA/Stable
Short Term Debt ST 25-10-17 CRISIL A1+ CRISIL A1+
04-10-17 CRISIL A1+
CRISIL CRISIL CRISIL CRISIL CRISIL
Fund-based Bank Facilities LT/ST 4980.00 14-08-20 30-08-19 Withdrawal 17-08-18 08-12-17
AA/Stable AA/Stable AA-/Positive AA-/Stable AA-/Stable
11-08-20 20-07-18 25-10-17
AA/Stable AA-/Stable AA-/Stable
13-07-20 06-07-18 04-10-17
AA/Stable AA-/Stable AA-/Stable
CRISIL CRISIL
06-07-20 28-06-18
AA/Stable AA-/Stable
CRISIL
16-06-20
AA/Stable
CRISIL
19-03-20
AA/Stable
CRISIL
08-01-20
AA/Stable
Non Fund-based Bank
LT/ST 20.00 CRISIL A1+ 14-08-20 CRISIL A1+ -- -- -- --
Facilities
11-08-20 CRISIL A1+
13-07-20 CRISIL A1+
06-07-20 CRISIL A1+
16-06-20 CRISIL A1+
19-03-20 CRISIL A1+
08-01-20 CRISIL A1+
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities

Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 20 CRISIL A1+ Bank Guarantee 20 CRISIL A1+
Cash Credit/ Overdraft facility 660 CRISIL AA/Stable Cash Credit/ Overdraft facility 660 CRISIL AA/Stable
Proposed Long Term Bank Loan Proposed Long Term Bank Loan
6.25 CRISIL AA/Stable 6.25 CRISIL AA/Stable
Facility Facility
Term Loan 818.75 CRISIL AA/Stable Term Loan 818.75 CRISIL AA/Stable
Working Capital Demand Loan 3495 CRISIL AA/Stable Working Capital Demand Loan 3495 CRISIL AA/Stable
Total 5000 -- Total 5000 --
Links to related criteria

CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt
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No.

November 07, 2020

To Whomsoever It May Concern,

CERTIFICATE FOR RECEIPT AND NOTING OF INFORMATION

For Catalyst Trusteeship Limited

Encl: Results submitted by Company

BSE Limited National Stock Exchange of India Limited

Pursuant to Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations,

We request you to please take the same on your record.

For Manappuram Finance Limited

Phone: +91 22 6185 4000

INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE

TO THE BOARD OF DIRECTORS

1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of

Our conclusion on the Statement is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP

Phone: +91 22 6185 4000

INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF

TO THE BOARD OF DIRECTORS

1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of

4. The Statement includes the results of the following entities:

Our conclusion on the Statement is not modified in respect of this matter.

Our conclusion on the Statement is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP

MANOJKUMAR V Digitally signed by MANOJKUMAR V R

Manoj Kumar V R 06.10.2020

Manappuram Finance Ltd

Amount (₹ Cr) Rating*

Facility** Tenure Previous

RATING ACTION / OUTLOOK

● Sizeable AUM with diversified portfolio: MFL’s consolidated assets under

● Consistent Improvement in Earnings Profile: On a consolidated basis, for FY19, the

● Geographical and Product concentration risk: MFLs loan portfolio is largely

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA

LIQUIDITY POSITION: Strong

Gold Loan Portfolio Rs in Crs 11,125 11,735 12,962

GNPA % 2.02 0.70 0.55

NNPA % 1.72 0.32 0.32

CRAR % 26.12 26.98 23.65

TNW Rs in Crs 3,308 3,808 4,375

Gearing Times 3.28 2.69 2.91

KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: Nil

NON-COOPERATION WITH PREVIOUS RATING AGENCY IF ANY: Nil

For more information, visit www.brickworkratings.com/download/ComplexityLevels.pdf

Hyperlink/Reference to applicable Criteria

Analytical Contacts Investor Contacts

Manappuram Finance Ltd

1 Andhra Bank Term Loan 400 120 520

Cash Credit 73.12 - 73.12

2 Federal Bank Term Loan 245 - 245

Cash Credit 1.99 - 1.99

3 HDFC Bank Term Loan 581.65 - 581.65

4 IDBI Bank Term Loan 270 - 270

5 Karnataka Bank Term Loan 100 - 100

6 Orinetal Bank of Commerce Term Loan 320 - 320

Cash Credit 1.99 - 1.99

7 Punjab National Bank Term Loan 950 - 950

Cash Credit 14.02 - 14.02

8 South Indian Bank Cash Credit 4.86 - 4.86