Home Credit India Finance Pvt. Ltd. (formerly known as Rajshree Auto Finance Pvt. Ltd.

)
Reg. Off.: Third Floor, Tower C, DLF Infinity Towers, DLF Cyber City,
Phase-II, Gurugram, Haryana - 122002
CIN: U65910HR1997PTC047448, Tel. No.:- +91 124 4907600
Web: www.homecredit.co.in Email: [email protected]

Ref no: HCIN/LC/2020-21/31

August 13, 2020

To,
Catalyst Trusteeship Limited
Windsor, 6th floor, Office No. 604,
C.S.T. Road, Kalina, Santacruz (East),
Mumbai - 400098

Sub: Periodic report for unlisted non-convertible debentures for the Quarter ended June 30, 2020.

Dear Sir/Mam,

With reference to your letter (CTL/MUM/Compliance/Quarterly/2020-21/793) dated June 30, 2020, we would
like to submit following information for the quarter ended June 30, 2020:

i. List of Debenture Holders as on June 30, 2020- List of unlisted Debenture Holders as on June 30, 2020 is
enclosed.

ii. Details of any due and unpaid interest and principal payment – Nil.

iii. Number and nature of grievances as on June 30, 2020 received from Debenture holders: Nil.

iv. Statement that the assets of company issuing debentures and of the guarantors/security providers, if any,
which are available by way of security are sufficient to discharge the interest and principal amount of
debenture holders as and when they become due: Statement enclosed.

v. Certificate from Practicing Chartered Accountant supporting the security cover certificate and giving the
value of book debts / receivables: Certificate enclosed.

vi. A report from the lead bank regarding progress of the project: - Not Applicable.

vii. A certificate from the Practicing Chartered Accountant in respect of utilisation of funds during the
implementation period of the project: Not Applicable

viii. A certificate from the Practicing Chartered Accountant in respect of utilisation of funds in the case of
debentures issued for financing working capital: - Not Applicable. However, the certificate from the
Company’s Statutory Auditor shall be submitted on annual basis at the end of accounting year.

ix. Any significant change in composition of Board of Directors, if any, which may amount to change in control as
defined in SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 – There has been no
change in composition of Board of Directors during the quarter ended June 30, 2020 which may amount to
change in control as defined in SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

x. Details of requisite/pending (if any) information/documents indicated as condition precedent/subsequent in

debenture document/s in respect of your NCD issuance – Nil.

xi. A Certificate confirming that the properties secured for the Debentures are adequately insured (wherever
applicable), and policies are in joint names of the Trustees: Not Applicable.

xii. Revision in rating of the debenture: CRISIL Limited vide letter dated April 01, 2020 has revised the rating of
below instrument of the Company as per the following details:
 S. No. Instruments Amount Interest ISIN Rating Agency
(INR Crore) Rate
1. NCD – Tranche XI 50.00 14.25% INE172V08051 Rating revised from CRISIL
BBB+/Positive (CRISIL Triple
B Plus; Positive; Outlook) to
CRISIL BBB+/Stable (CRISIL
Triple B Plus; Stable; Outlook)
w.e.f April 01, 2020.

The copy of the CRISIL Limited rating letter dated April 01, 2020 is enclosed herewith.

xiii. Updated information on default in payment of principal & interest on due dates, Credit rating and
implementation of DRR requirement - Annexure-B.

Request you to please take the aforesaid information on record and oblige us.

Thanking You

For Home Credit India Finance Private Limited

Gaurav Sharma
Company Secretary
Membership No. A21729

Enclosures:
1. List of unlisted Debenture Holders as on June 30, 2020.
2. Statement of eligible receivables and bank borrowing as on June 30, 2020.
3. Certificate for security cover and value of book debts / receivables as on June 30, 2020.
4. CRISIL Limited rating letter dated April 01, 2020
 List of unlisted Debenture Holders as on June 30, 2020

S. Name of Address Face Value Total No. of

No. Debenture Debentures
Holder

1. IFMR Fimpact IFMR Investments, 10th INR 1,000,000 270

Medium Term Floor, IIT Madras Research each
Opportunities Park, 1, Kangam Village,
Fund Taramani, Chennai-600113,
India
2. IFMR Fimpact IFMR Investments, 10th INR 1,000,000 230
Long Term Credit Floor, IIT Madras Research each
Fund Park, 1, Kangam Village,
Taramani, Chennai-600113,
India
Total 500
 Home Credit India Finance Private Limited#
Provisional Statement of Eligible Receivables and bank borrowing as of 30th June, 2020 (For Catalyst
Trusteeship Ltd.)
S.No.Particulars Amount (Rs) Bank Borrowing
A. Calculation of Eligible Loan Receivables
1 Loan Receivables 76,338,607,000 -
2 Less: Receivables past Days-Past-Due more than 90 days 7,144,187,000
3 Less: Loan against Property (if any) -
4 Less: Loan against Shares (if any) -
Less: Bills discounted / rediscounted by NBFC (except bills
5 discounting arising from sale of commercial vehicles, two wheeler/
three wheelers) -
Less: Finance to individuals for subscribing to IPO or purchase of
6
shares from secondary market -
7 Eligible loan receivables (1 – (2+3+4+5+6)) 69,194,420,000

B. Outstanding bank borrowing Amount (Rs.)

Northern ARC - VIII 187,501,000
Bonds Outstanding- Tranche VI 3,500,000,000
Bonds Outstanding- Tranche VII 3,750,000,000
Bonds Outstanding- Tranche VIII 2,250,000,000
Bonds Outstanding- Tranche IX 2,220,000,000
Bonds Outstanding- Tranche X 4,000,000,000
Axis Bank 100,000,000
HDFC Bank 500,000,000
Bonds outstanding-Mahindra Finance 187,500,000
Bonds outstanding-Unifi 150,000,000
Bonds outstanding- JM Financial 578,004,483
Venus India Assets Finance_1 31,249,993
IndusInd Bank 100,000,000
Deutsche Bank 2,200,000,000
PPF Co3 BV - ECB 1 1,760,000,000
AB4 BV - ECB 2 1,750,000,000
Venus India Assets Finance_2 75,000,000
AB4 BV - ECB 3 3,500,000,000
Bonds outstanding- JM Financial 728,529,025
PPF Co3 BV - ECB 4 3,000,000,000
AB4 BV- ECB 5 3,000,000,000
PPF Co3 BV - ECB 6 5,000,000,000
AB4 BV- ECB 7 5,500,000,000
PPF Co3 BV - ECB 8 4,400,000,000
Total 48,467,784,501
# Provisional numbers

Page 1 of 3
 Home Credit India Finance Private Limited#
Table A:
S.No.Particulars Amount (Rs)
1 Loan Receivables
Two Wheeler Loans 368,224,000
Consumer Durable Loans 12,315,669,000
Cash Loan 63,654,714,000
2 Loan against Property (if any) -
3 Loan against Shares (if any) -
Bills discounting arising from sale of commercial vehicles, two
4
wheeler/ three wheelers -
5 Bills discounted / rediscounted other than mentioned under (4) -
Finance to individuals for subscribing to IPO or purchase of shares
6
from secondary market -
Total 76,338,607,000
Table B:
S.No.Outstanding Bank Borrowings Amount (Rs)
1 Northern ARC - VIII 187,501,000
2 Bonds Outstanding- Tranche VI 3,500,000,000
3 Bonds Outstanding- Tranche VII 3,750,000,000
4 Bonds Outstanding- Tranche VIII 2,250,000,000
5 Bonds Outstanding- Tranche IX 2,220,000,000
6 Bonds Outstanding- Tranche X 4,000,000,000
7 Axis Bank 100,000,000
8 HDFC Bank 500,000,000
9 Bonds outstanding-Mahindra Finance 187,500,000
10 Bonds outstanding-Unifi 150,000,000
11 Bonds outstanding- JM Financial 578,004,483
12 Venus India Assets Finance_1 31,249,993
13 IndusInd Bank 100,000,000
14 Deutsche Bank 2,200,000,000
15 PPF Co3 BV - ECB 1 1,760,000,000
16 AB4 BV - ECB 2 1,750,000,000
17 Venus India Assets Finance_2 75,000,000
18 AB4 BV - ECB 3 3,500,000,000
19 Bonds outstanding- JM Financial 728,529,025
20 PPF Co3 BV - ECB 4 3,000,000,000
21 AB4 BV- ECB 5 3,000,000,000
22 PPF Co3 BV - ECB 6 5,000,000,000
23 AB4 BV- ECB 7 5,500,000,000
24 PPF Co3 BV - ECB 8 4,400,000,000
Total 48,467,784,501
# Provisional numbers

Page 2 of 3
 Drawing Power#
Particulars Amount (INR)
Total Portfolio Receivables (A) 76,338,607,000
Less: Receivables over due for more than 90 Days (DPD more than 90 7,144,187,000
Sub-Total (C=A-B) 69,194,420,000
(D-1)Less: Margin for Northern ARC - VIII 37,500,200
(D-2)Less: Margin for Bonds Outstanding- Tranche VI 525,000,000
(D-3)Less: Margin for Bonds Outstanding- Tranche VII 562,500,000
(D-4)Less: Margin for Bonds Outstanding- Tranche VIII 337,500,000
(D-5)Less: Margin for Bonds Outstanding- Tranche IX 333,000,000
(D-6)Less: Margin for Bonds Outstanding- Tranche X 600,000,000
(D-7)Less: Margin for Axis Bank 380,000,000
(D-8)Less: Margin for HDFC Bank 125,000,000
(D-9)Less: Margin for Bonds outstanding-Mahindra Finance 18,750,000
(D-10)Less: Margin for Bonds outstanding-Unifi 15,000,000
(D-11)Less: Margin for Bonds outstanding- JM Financial 57,800,448
(D-12)Less: Margin for Venus India Assets Finance_1 7,812,498
(D-13)Less: Margin for IndusInd Bank 525,000,000
(D-14)Less: Margin for Deutsche Bank 440,000,000
(D-15)Less: Margin for PPF Co3 BV - ECB 1 264,000,000
(D-16)Less: Margin for AB4 BV - ECB 2 262,500,000
(D-17)Less: Margin for Venus India Assets Finance_2 18,750,000
(D-18)Less: Margin for AB4 BV - ECB 3 525,000,000
(D-19)Less: Margin for Bonds outstanding- JM Financial 72,852,902
(D-20)Less: Margin for PPF Co3 BV - ECB 4 450,000,000
(D-21)Less: Margin for AB4 BV- ECB 5 450,000,000
(D-22)Less: Margin for PPF Co3 BV - ECB 6 750,000,000
(D-23)Less: Margin for AB4 BV- ECB 7 825,000,000
(D-24)Less: Margin for PPF Co3 BV - ECB 8 660,000,000
(D-25)Less: Margin for Securitized and Direct Assignment Portfolio 4,928,691,841
Drawing Power available for limit set-up (E=C-D(1-25)) 56,022,762,110
Drawing Power allocated to Outstanding Borrowings 48,467,784,501
Unallocated Drawing Power 7,554,977,609
# Provisional numbers

For Home Credit India Finance Private Limited

ANIRBAN
Digitally signed by ANIRBAN MAJUMDER
DN: c=IN, o=Personal,
2.5.4.20=51915cad79a0b496878e038efa0517d87ee6c
d5aec82dfcb653ff2f9a69d7f3b, postalCode=201301,
st=UTTAR PRADESH,

MAJUMDER
serialNumber=1e2c5184b9619ce755b77294621436e5
c5f17d05a7d4e1d1409f4a02482d4323, cn=ANIRBAN
MAJUMDER
Date: 2020.07.15 16:10:05 +05'30'

Authorized Signatory

Page 3 of 3
 Rating Rationale
April 01, 2020 | Mumbai

Home Credit India Finance Private Limited

Rating outlook revised to 'Stable', rating reaffirmed

Rating Action
Total Bank Loan Facilities Rated Rs.800 Crore
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Long Term Rating
and rating reaffirmed)

CRISIL BBB+/Stable (Outlook revised from 'Positive'

Rs.75 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.350 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.400 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.222 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.375 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.225 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.50 Crore Non Convertible Debentures
and rating reaffirmed)
CRISIL BBB+/Stable (Outlook revised from 'Positive'
Rs.825 Crore Non Convertible Debentures
and Rating withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities

1
Detailed Rationale
CRISIL has revised its outlook on the long-term bank facilities and other debt instruments of Home Credit
India Finance Private Limited (Home Credit India) to 'Stable' from 'Positive' while reaffirming the rating at 'CRISIL
BBB+'.

The revision of outlook is primarily due to uncertainty associated with the current market environment due to
Covid-19 related lockdown and the potential impact on collections and asset quality on the operations of Home Credit
India as well as on the China operations of parent which contributed to around 60% of the total gross loans.
Nevertheless, CRISIL notes the standalone performance of Home Credit India has improved since fiscal 2019, with
the company reporting profits amidst controlled operating expenses due to various measures taken which include
change in sourcing model, reduction of expenses, diversification of income sources and employee count
rationalisation through various departments. Any major impact on the collections or asset quality thereby impacting
profitability of Home Credit India will remain a key monitorable.

CRISIL has also withdrawn its rating on the non-convertible debentures of Rs 825 crore (See Annexure 'Details of
Rating Withdrawn' for details) in line with its withdrawal policy. CRISIL has received independent that these
instruments are fully redeemed.

Home Credit India's liquidity profile is healthy with cash and equivalents of Rs 772 crore and unutilised bank lines of
Rs 572 crore. This is expected to be adequate to manage this period wherein asset-side collections will be negligible
while liability-side outflows continue as per schedule. CRISIL notes that the recent announcement by Reserve Bank
of India (RBI) permitting Banks to provide a moratorium to their borrowers may also provide additional relief, if availed
by the company for its bank loans.

The portfolio of Home Credit India has crossed Rs 8000 crore mark as on December 31, 2019 as against Rs 1952
crore as on March 31, 2017. Given that its customer segment, significant customer origination are new to credit, is
relatively difficult to address, and that the product segment is very operationally intensive, it faces limited competition.
With its distribution network now in place, Home Credit India is expected to deepen its penetration in the 265 cities
and towns as on December 31, 2019 in which it is present and continue to grow its portfolio at a healthy pace.

The portfolio scale up has also resulted in attendant operating efficiencies; this, coupled with the focus on manpower
optimization, has also benefitted Home Credit India's earning profile with the company turning profitable (at a pre-tax
level and net profit) on a quarterly basis.

Home Credit's China operations contribute to around 60% of the total group's operating revenue and the extent of
impact of Covid-19 on the Chinese operations especially collections and asset quality is yet to be assessed. CRISIL
observed that Home Credit China had in the past withstood such headwinds and realigned itself to become profitable
within a quarter. However, the impact of the same on the business and financial risk profile of China operations
remains a key monitorable.

Home Credit Russia continues to maintain its steady performance and has been playing a key role in supporting
Home Credit group's profitability. Home Credit and Finance Bank (including Kazakhstan operations) reported a net
profit of 15.8 billion Russian Ruble (around Rs 1674 crore) during 2019 as against 13.8 billion Russian Ruble (around
Rs 1463 crore) during the corresponding period previous year. Besides maintaining steady profitability, Home Credit
Russia has also maintained its market position within Russia. As per company estimates, it had a market share to
22% within POS loans as of year end 2019.

The ratings also continue to factor in the adequate capitalisation and moderate resource profile of Home Credit India.
The company had a networth of Rs 2555 crore and comfortable gearing of 2.6 times as on December 31, 2019.
However, Home Credit India has modest asset quality, underpinned by the inherently weak credit risk profile of
borrowers and unsecured nature of advances. Their earnings profile is also modest, albeit improving, on the back of
high operating and credit costs.

2
Analytical Approach
The rating of Home Credit India continues to be centrally driven by its strategic importance to, and expectation of
strong support from its parent, Home Credit Group BV.

Key Rating Drivers & Detailed Description

Strengths
* Strategic importance to, and expectation of strong support from, the parent, Home Credit Group BV:
Given its large population and limited credit penetration by organised players in the retail consumer finance business,
India is a strategically important country for the Home Credit group. Home Credit India, therefore, is likely to receive
strong financial, managerial, and operational support from the parent, Home Credit Group BV. Home Credit Group
group infused equity capital of close to Rs 2539 crore in Home Credit India between fiscal 2017 and 2019. During
fiscal 2019, Home Credit group has infused around Rs 1000 crore, thereby providing support during the recent tight
liquidity conditions. This indicates the parent's strong commitment to provide funding and capital support to the
subsidiary. CRISIL believes Home Credit India will continue to receive capital support from the parent on an ongoing
basis and in the event of distress.

Managerial support is reflected in the deployment of senior management personnel from the Home Credit group, and
involvement of senior management personnel from Home Credit Group, in the operations of Home Credit India.
Operational support is reflected in technical and functional inputs from Home Credit Group. The risk management
tools used by Home Credit India are developed centrally by the Home Credit Group and are customised for India.
The functional team of Home Credit India receives regular guidance from the corresponding teams across Asia and
Europe. Home Credit India will continue to receive financial, managerial, and operational support from Home Credit
Group. Any change in the credit risk profile of Home Credit Group and in the extent of its support to the Indian
subsidiary remain key rating sensitivity factors.

* Moderate credit profile of parent, Home Credit Group BV:

Home Credit Group BV's credit risk profile is driven by that of two of its largest subsidiaries, Home Credit China and
Home Credit Russia while at the same time, Home Credit Group BV's operations in South and South East Asia
region continue its strong growth and keep increasing this region's importance in Home Credit performance. Home
Credit China's is expected to improve with structural strengthening of its market position. It also has, adequate
leverage, moderate risk position, and strong funding profile and liquidity. Home Credit Russia too has a strong market
position, adequate capital and earnings, moderate risk position, and adequate funding and liquidity. Home Credit
Group BV is also strategically important to PPF Group, one of the largest investment groups in Central and Eastern
Europe accounting for around 55% of the latter's total assets. Shareholders of PPF Group publicly acknowledge the
strategic importance of Home Credit Group BV, and share the key performance highlights of this company and its
subsidiaries with bankers during their annual bankers' meet. Home Credit Group BV receives funding support from
PPF Group in the form of equity capital and unsecured loans, and will continue to do so.

* Adequate capitalisation:
Home Credit India is adequately capitalised, as reflected in its networth and adjusted gearing of Rs 2555 crore and
2.6 times, respectively, as on December 31, 2019. The networth coverage for net non-performing assets (NPAs) is
also comfortable, as the company maintains a high provisioning level. Further, the capital position is also expected to
supported by the accretions given the company has turned profitable at profit before tax and net profit level in the first
three quarters of fiscal 2020. Home Credit India has received regular equity infusion from the parent, with the last
round of Rs 400 crore infusion done in January 2019. Further, the parent through various entities has been providing
funding support, Rs 4613 crore as on December 31, 2019 against Rs 2823 crore as on March 31, 2019.

* Moderate resource profile:

Home Credit India benefits from funding support from Home Credit group. Most of its bank facilities are backed by
corporate guarantee from Home Credit Group BV. The company has availed most of its debt from foreign banks. To
diversify its resource profile, Home Credit India has started raising funds via non-convertible debentures, CP's, ECB's
and securitization on a regular basis. The company has availed debts from a few domestic banks, non-banking
financial companies (NBFCs), Mutual Funds and Financial Institutions (FI's). CRISIL believes Home Credit group will
continue to support the resource profile of the Indian subsidiary if needed to help raise debt to fund growth. The
resource profile is primarily supported by borrowings from the parent group of 71% (43% in the form of ECBs and

3
28% in the form of Group bonds), bank borrowings constitute to 14%, NCDs from domestic institute constitute 6%,
term loans from domestic institute constitute 1% and securitisation constitute another 8% of total borrowings. Home
Credit India is in process of diversifying resources from domestic sources but given the current funding scenario for
non-banks, they have been able raise to majority of funds through securitisation route till Q3 of fiscal 2020. Excluding
securitisation, the company has raised Rs 240 crore in first three quarters of fiscal 2020. However, post December
2019, the company has raised Rs 197 crore from various other sources excluding securitisation.

* Improving market position:

Home Credit India's operations have grown at a significant pace during the last 2 years. The portfolio has around Rs
8000 crore mark (stood at Rs 8097 crore) as on December 31, 2019 as against Rs 1952 crore as on March 31, 2017.
In terms of portfolio breakup, the company had around 78% of its portfolio towards cash loans (unsecured personal
loans), 21% towards POS loans and 1% for others. Given that the distribution network is now in place, covering
around 265 cities and towns as on December 31, 2019, the focus will be now on leveraging this network to scale up
the portfolio. Additionally, the company is also expanding its presence in organised retail consumer durable segment
and furniture's financing. Through this, the company will target to acquire customers who wish to buy consumer
durable products. Growth is therefore expected to remain strong going ahead.

Weaknesses
* Modest asset quality:
Gross GNPAs, at 7.09% as on December 31, 2019 continue to remain high. This is largely because of the inherently
modest credit risk profiles of its borrowers, who have limited credit history. Gross NPAs had increased in fiscal 2019
because of the attempt to shift customers to non-cash modes of repayment, which temporarily impacted collection
efficiencies and seem to be declining in fiscal 2020. The company has policy wherein it write-offs post 360 days.
Therefore, if asset quality measured in terms of Gross NPAs + write-offs (during nine months fiscal 2020), it would be
around Rs 1110 crore (about 13.7% of loan portfolio). Though delinquencies are expected to remain range-bound,
supported by sound risk management systems, asset quality will remain susceptible to risks inherent in the
unsecured lending business. The company is likely to benefit from the increasing penetration and use of credit
bureaus. The company has also been improving its internal risk management systems and refining its underwriting
models by creating its own customer data base and increasingly focusing on customer behaviour level analysis.
Nevertheless, its delinquencies are expected to remain higher than the industry average for NBFCs because of
unsecured lending. Ability to continuously strengthen risk management systems and keep credit costs under control,
while scaling up operations, remains a monitorable. Any major impact on the collections or asset quality due to
Covid-19 linked challenges will be a key rating sensitivity factor.

* Modest, but improving earnings profile:

Home Credit India's earning profile has been constrained by high provisioning and operating expenses given the
substantial investments in building its infrastructure. However, it is now on an improving trend. In fiscal 2019,
operating expenses by average managed assets were 19% while provisions were 11%; these offset the benefits of
high net interest margins (NIMs) and resulted in a return on managed assets (RoA) of (-)1.3%. In fiscal 2020, the
continued improvement in scale resulting in operating efficiencies as well as control on various expense lines, the
company has also been able to improve its earnings profile. Home Credit India now turned profitable (PBT and net
profit level) on a quarterly basis. The company reported profit before tax of Rs 159 crore during nine months fiscal
2019 against a loss before tax of Rs 156 crore in first 9 months of fiscal 2019. Provisioning costs are expected to
remain high because of higher delinquencies and conservative provisioning policy compared with regulatory
requirements. Nevertheless, CRISIL believes that Home Credit India's profitability will improve over the medium term
driven primarily by operating efficiencies. However, the impact of COVID on the collections and asset quality remain
key monitorable given the uncertainty of lockdown.

4
Liquidity Adequate
The liquidity position of Home Credit India is supported by the nature of its loan portfolio (CD loans: 21% of portfolio)
which is short term and with a repayment period of about 6 months. HC India has debt payments of Rs 665 crore
between April 2020 and end June 2020. Further, HC India had cash and equivalents of Rs 772 crore as on March 25,
2020 and unutilised bank lines lines of Rs 572 crores. This is expected to be adequate to manage this period wherein
asset-side collections will be negligible while liability-side outflows continue as per schedule. CRISIL notes that the
recent announcement by Reserve Bank of India (RBI) permitting Banks to provide a moratorium to their borrowers
may also provide additional relief, if availed by the company for its bank loans.

Outlook: Stable
CRISIL believes Home Credit India will remain strategically important to, and will continue to receive financial,
managerial, and operational support from, Home Credit Group BV.

Rating Sensitivity Factors

Upward factors
* Improvement in earnings profile of Indian operations with return on managed assets (RoMA) moving above 3%
* Ability to diversify the resource profile of the company with higher share of local borrowings

Downward factors
* Deterioration in credit profile of the parent Home Credit Group B.V
* Change in support philosophy of the global parent Home Credit Group B.V towards Indian operations
* Sharp deterioration of asset quality wherein gross NPA increase above 10%

About Home Credit India

Home Credit India launched operations in 2012 and has presence in 20 states in India. The company initially offers
loans for purchase of consumer durables (primarily consisting of mobile phones), and subsequently offers cash loans
to borrowers with good repayment track record. It also has other portfolio, which is not expected to increase
materially. Its loan book was Rs 8097 crore as on December 31, 2019 of which, 21% was for purchase of consumer
durables, 78% comprised cash loans and 1% for others.

About Home Credit Group BV

The Home Credit group was founded in 1997. The main shareholder of Home Credit Group BV is PPF Financial
Holdings B.V. (91.1% stake). The Home Credit group has a presence in 10 countries through subsidiaries. It
predominantly offers loans for purchase of consumer durables (primarily consisting of mobile phones) and unsecured
personal loans (cash loans). It focuses on lending to borrowers with limited or no credit history. It operates as a bank
in Russia and Kazakhstan, where it offers retail banking products such as credit cards, deposits, and current
accounts. The Home Credit group also has banking operations in Czech Republic in the name of Airbank. Over the
years, the Home Credit group has developed expertise in assessing customers with no credit score by collecting
basic demographic and financial information of the prospective borrowers.

As on December 31, 2019, Home Credit Group BV (on a consolidated basis) had a gross loan portfolio of EUR 21.8
billion (Approximately INR 1,74,400 crore), of which, around 24% comprised loans for buying consumer durables
(primarily mobile phones), 70% was cash/personal loans, 4% revolving loans and residual 2% for mortgages, vehicle
finance and corporate loans. It had assets of EUR 26.6 billion (Approximately INR 2,12,800 crore) and a networth of
EUR 2.9 billion (Approximately INR 23,200 crore).

About PPF Group

PPF Group is one of the largest investment groups in Central and Eastern Europe. The main shareholder of PPF
Group is Mr Petr Kellner (holds 98.92% stake in PPF Group). According to Forbes, Mr Kellner is the richest man in
the Czech Republic, with a networth of USD 15.5 billion (about INR 82,838 crore). PPF Group has been investing in
sectors such as banking, financial services, telecommunications, mechanical engineering, biotech and real estate. It
is mainly active in Europe, Russia, Asia, and the US. As on June 30, 2019, it had assets of EUR 47.3 billion (about
INR 378,400 crore).

5
Key Financial Indicators
As On/For The Period Ended December 31 Unit 2019 2018*
Total assets Rs cr 9631 6854
Total income Rs cr 2314 1848
Profit after tax Rs cr 14 318
Gross NPA % 7.1 8.4
Gearing Times 2.6 2.1
Return on assets % 0.2 7.1
*the company reported profit during nine months of fiscal 2019 mainly through deferred tax adjustment

Any other information: Not applicable

Note on complexity levels of the rated instrument:

CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are
available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that
they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific
instruments.

6
Annexure - Details of Instrument(s)
Issue
Date of Coupon Maturity Rating Assigned
ISIN Name of Instrument Size
Allotment Rate (%) Date with Outlook
(Rs. Cr)
CRISIL
INE172V07061 Debentures 27-Jul-17 12.05% 31-Jul-20 350
BBB+Stable
CRISIL
INE172V07079 Debentures 8-Aug-17 12.07% 31-Aug-20 375
BBB+Stable
CRISIL
INE172V07087 Debentures 28-Aug-17 11.92% 31-Aug-20 225
BBB+Stable
CRISIL
INE172V08051 Debentures 7-Nov-17 14.25% 9-Nov-20 50
BBB+Stable
CRISIL
INE172V07103 Debentures 6-Oct-17 12.28% 15-Oct-20 222
BBB+Stable
CRISIL
INE172V07111 Debentures 24-Oct-17 13.20% 6-Nov-20 400
BBB+Stable
CRISIL
INE172V07129 Debentures 27-Mar-18 13.12% 26-Mar-21 75
BBB+Stable
Long Term Bank CRISIL
NA NA NA NA 653.5
Facility BBB+Stable
Proposed Long Term CRISIL
NA NA NA NA 146.5
Bank Loan Facility BBB+Stable

Annexure - Details of Rating Withdrawn

Name of Date of Coupon Rate Maturity Issue Size
ISIN
Instrument Allotment (%) Date (Rs. Cr)
INE172V07046 Debentures 6-Dec-16 12.21% 13-Dec-19 225
INE172V07053 Debentures 18-Jan-17 11.27% 31-Jan-20 250
INE172V07095 Debentures 13-Dec-17 14.25% 13-Dec-19 350

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Annexure - Rating History for last 3 Years
Start of
Current 2020 (History) 2019 2018 2017
2017
Outstanding
Instrument Type Rating Date Rating Date Rating Date Rating Date Rating Rating
Amount

CRISIL CRISIL CRISIL CRISIL CRISIL

Non Convertible 1697.00
LT BBB+/St 29-03-19 BBB+/Po 23-03-18 BBB+/St 12-12-17 BBB+/St BBB/Sta
Debentures 31-03-20
able sitive able able ble

CRISIL
25-10-17 BBB+/St
able

CRISIL
06-10-17 BBB+/St
able

CRISIL
20-07-17 BBB/Sta
ble
CRISIL
09-01-17 BBB/Sta
ble

CRISIL CRISIL CRISIL CRISIL CRISIL

Fund-based Bank LT/S
800.00 BBB+/St 29-03-19 BBB+/Po 23-03-18 BBB+/St 12-12-17 BBB+/St BBB/Sta
Facilities T
able sitive able able ble

CRISIL
25-10-17 BBB+/St
able

CRISIL
06-10-17 BBB+/St
able

CRISIL
20-07-17 BBB/Sta
ble

CRISIL
09-01-17 BBB/Sta
ble
All amounts are in Rs.Cr.

Annexure - Details of various bank facilities

Current facilities Previous facilities
Amount Amount
Facility Rating Facility Rating
(Rs.Crore) (Rs.Crore)
Long Term Bank CRISIL Long Term Bank CRISIL
653.5 673.5
Facility BBB+/Stable Facility BBB+/Positive
Proposed Long Term CRISIL Proposed Long Term CRISIL
146.5 126.5
Bank Loan Facility BBB+/Stable Bank Loan Facility BBB+/Positive
Total 800 -- Total 800 --

Links to related criteria

CRISILs rating methodology for ABS transactions
Evaluating risks in securitisation transactions - A primer
Legal analysis in structured finance transactions

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