BSE : Update Regarding debt securities of MAS Financial Services Ltd

NOTICES

Notice No.		20220919-47		Notice Date		19 Sep 2022
Category		Company related		Segment		Debt
Subject		Update Regarding debt securities of MAS Financial Services Ltd
Content

In continuation to notice no. 20220802-24 dated 02 August 2022 regarding debt securities of MAS Financial Services Ltd, Trading Members are requested to note that below Scrip Code bearing the following ISIN would be available for trading with revised terms as mentioned below with effect from Tuesday, 20^thSeptember 2022:

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Scrip Code: 974080, ISIN: INE348L07134<_o3a_p>

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S. NO	PARTICULARS<_o3a_p>	EXISTING PROVISION<_o3a_p>	PROPOSED MODIFICATIONS<_o3a_p>	RATIONALE<_o3a_p>
1. <_o3a_p>	Promoter Control<_o3a_p>	No existing provision <_o3a_p>	Promoters to maintain management control in the Company and hold at least 51% shareholding.<_o3a_p>	As per commercially agreed terms between the Company and the Debenture Holders <_o3a_p>
2. <_o3a_p>	Loan to Group Company by NBFC<_o3a_p>	No existing provision<_o3a_p>	Company to limit its investment in group entities including MAS Housing Finance to 10% of net worth.<_o3a_p>	As per commercially agreed terms between the Company the Debenture Holders<_o3a_p>
3. <_o3a_p>	Step Up / Step Down Coupon Date<_o3a_p>	Applicable in case of any downgrade in company rating or the rating of the Debentures <_o3a_p>	To be removed <_o3a_p>	As per commercially agreed terms between the Company the Debenture Holders<_o3a_p>
4. <_o3a_p>	Definition of Majority Debenture Holders<_o3a_p>	Persons holding 50% of the Debentures<_o3a_p>	To be modified to incorporate references to the SEBI circular bearing reference number SEBI/HO/MIRSD/CRADT /CIR/P/2020/203 dated October 13, 2020 on "Standardisation of procedure to be followed by Debenture Trustee(s)in case of 'Default' by Issuers of listed debt securities"<_o3a_p>	Clarificatory change to align with the requirements prescribed by the Securities and Exchange Board of India ("SEBI") <_o3a_p>
5. <_o3a_p>	Security <_o3a_p>	The Debentures shall be secured by way of a first ranking exclusive and continuing charge to be created in favour of the Debenture Trustee pursuant to an unattested deed of hypothecation ("Deed of Hypothecation") over certain identified book debts/loan receivables of the Company as described therein (the "Hypothecated Assets"). The charge over the Hypothecated Assets shall at all times, commencing from the deemed date of allotment and until the redemption of the Debentures, be at least 1.1 (one decimal one) times the value of the outstanding amounts in respect of the Debentures (the "Security Cover").<_o3a_p>	· Modifications to the eligibility criteria of the book debts/receivables comprising the Hypothecated Assets <_o3a_p>· Modifications/clarifications on the timelines for top-up of security <_o3a_p>· Modifications/clarifications on the reporting requirements for security<_o3a_p>· Other consequential changes in respect of the above <_o3a_p> <_o3a_p>	As per commercially agreed terms between the Company the Debenture Holders<_o3a_p>
6. <_o3a_p>	Financial Covenants <_o3a_p>	The DTD initially contained provisions enabling the Company and the Debenture Holders to agree to financial covenants <_o3a_p>	The Company and the Debenture Holders have now agreed to the following financial covenants: <_o3a_p> <_o3a_p> · The Company shall maintain a Capital Adequacy Ratio of at least 18% (eighteen percent) or such other threshold as may be prescribed by the RBI from time to time <_o3a_p>· The Company shall maintain the ratio of the total debt of the Company to the equity of the Company of not more than 5 (five) times <_o3a_p>· The Company shall maintain the ratio of A:B of less than or equal to 5% (five percent), where A is the gross NPA of the Company, and B is the assets under management of the Company. <_o3a_p>· The Company shall maintain the ratio of A:B of less than or equal to 3% (three percent), where A is the Net NPA of the Company, and B is the assets under management of the Company. <_o3a_p>· The Company shall ensure that it maintains total equity of at least INR 1,000,00,00,000 (Indian Rupees One Thousand Crore). <_o3a_p>· The Company shall ensure that its profit after tax (on a standalone basis) remains positive. <_o3a_p>· Such other covenants as may be agreed. <_o3a_p> <_o3a_p> The above shall be more particularly elaborated in the amendments to the DTD. <_o3a_p> <_o3a_p>	As per commercially agreed terms between the Company the Debenture Holders<_o3a_p>

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Trading Members may contact the following Officials for further details if any:<_o3a_p>

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Name of the Officer<_o3a_p>	Contact details<_o3a_p>	Email Id<_o3a_p>
Mr. Akshay Arolkar<_o3a_p>	[phone]<_o3a_p>	[e-mail]<_o3a_p>

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Rupal Khandelwal<_o3a_p>

Assistant General Manager <_o3a_p>

September 19, 2022<_o3a_p>