Pyse Verified-Bounce

Pyse Verified Set of 4 matrices on which an internal scoring is done to rate the asset quality

• This criteria report evaluates various operational projects across different class of assets. This report covers greenfield or

existing plants, individual or portfolio assets.

• This criteria report serves as a key document for evaluating asset and project quality and focuses on matters specific to

the solar power sector. The evaluation of any transaction involves consideration of additional risks common to all project

finance debt.

• Pyse has identified four key rating factors, each of which plays a significant role in determining the rating outcome for a

given EV asset. These are discussed at various points in the criteria report and will be highlighted as and when used.

• Performance Check — This check ensures that the assets and operations are up to efficiency standards to give the promised returns.

• Credit Check — We perform a credit risk analysis of the off-taker to ensure that the customer who operates the asset pay their

bills on time.

• Operational Check — Resource's validation allows us to rate the quality of the manufacturer and the warranties/insurances

provided along with asset.

• Revenue Check — Pyse carefully vets all commercial contracts to ensure that the investments are securitized, and income is

regular.

Pyse Verified Criteria

Framework for Pyse

Verified Rating

The framework for Pyse Verified Rating works very similar to CIBIL score which any individual can relate to. The Pyse Verified

Rating scores the five parameters out of 900 with each criterion carrying equal weight (i.e., 180 each).

Category Score

Excellent 750+

Good 675-749

Fair 600-674

Poor <600

Pyse Verified-

Bounce

Category Score

Performance Risk 190/200

Revenue Risk 235/250

Credit Risk 125/200

Operational Risk 190/250

Total Score = 740

Good

Score 750+ 675-749 600-674 <600A 200 BBB+ 160 BBB 120 BB 80

Performance Risk

1Average yearly operation

(km)>20,000km50

Average yearly operation

(km)>15,000,<20,000km40

Average yearly operation

(km)<15,000,>10,000km30

Average yearly operation

<10,000km20

2

Suppliers have proven track

records of producing

superior-quality batteries and

scooters

50

Suppliers have proven track

records of producing high

quality

batteries and scooters

(e.g., high availability).-

Among top 10 Global/Indian

players

40

Non-investment-grade

supplier and contractor with

insufficient enhancements or

without fixed-price

contract.-Well known battery

and EV scooter player

30

Low non-investment-

grade supplier and

contractor

with insufficient

enhancements or without

fixed-price

contract.

20

3 Motor power >1200 Watts 25Motor power <1200,>1000

Watts20

Motor power <1000,>800

Watts15 Motor power <800 Watts 10

4Operating History of the lesse >

2 year25

Operating History of the

lesse 6 months -2 years20

Operating History of the

lesse< 6 months15

Newly constructed/Green

field asset10

5Estimated life >1200 cycles of

battery50

Estimated life >1000,<1200

cycles of battery40

Estimated life >800,<1000

cycles of battery30

Estimated life <800 cycles

of battery20

Performance RiskTotal Score= 190

70,000 km

Battery and scooter manufacturer. Have a

proven record of over more than a decade.

1 (40)

Ampere &

Exicom

Solutions

Average life of the EV scooter over 4-year

tenure which gives a yearly coverage of

17,500 km on a yearly basis.

2 (50)

Performance Risk

1200

Watts

3 (25)

Motor power of the

scooter

Performance Risk

Operating history of

Bounce scooters in

India.

4 (25)

1200

Cycles

5 (25)

4+

Estimated life of

batteries

Score 750+ 675-749 600-674 <600A 250 BBB+ 200 BBB 150 BB 100

Revenue Risk

1Non-Cancellable period of lease>12

months75

Non-Cancellable period of

lease>9<12 months60

Non-Cancellable period of

lease<9>6 months45

Non-Cancellable period of

lease<6 months30

2

Payment defaults

Late payment to attract interest charges-

>=1.5%

75

Payment defaults

Late payment to attract interest

charges-0.5-1.5%

60

Payment defaults

Late payment to attract

interest charges-<0.5%

45

Payment defaults

Late payment to attract no

interest charges

30

3

Default >= Payment Security- Offtaker to

cover 100% of the PV of all the future

payments till the contract tenure/Buyout

at a Purchase price

100

Default >= Payment Security-

Offtaker to cover >75% of the

PV of all the future payments till

the contract tenure/Buyout at a

Purchase price

80

Default >= Payment Security-

Offtaker to cover 50-75% of

the PV of all the future

payments till the contract

tenure/Buyout at a Purchase

price

60

Default >= Payment

Security- Offtaker to cover

<50% to no future PV

payments till the contract

tenure/Buyout at a

Purchase price

40

Revenue RiskTotal Score= 235

12 months

1 (60)Non cancellable period

of lease 1.5%

2 (75)Late payment to attract

interest charges

Offtaker to cover 100% of

the PV of all the future

payments till the contract

tenure/Buyout at a

Purchase price

>=100%

3 (100)

Score 750+ 675-749 600-674 <600

200 160 120 80

Credit Risk

1External Credit Rating available & greater than A

50External Credit Rating available A-BBB+

40External Credit Rating available BBB+-BBB

30External Credit Rating available <=BB

20

2lnternal Credit Rating available & greater than A

30Internal Credit Rating available A-BBB+

25Internal Credit Rating available BBB+-BBB

20Internal Credit Rating available <=BB

15

3Low risk. Reliable company. Growth trend.

30Risk below normal. Reliable company.

25Normal risk. Financial Indicators of the company are growing.

20Risk above normal. Short term credit only.

15

4Probability of payment default within the next 12 months (%) <1%

30Probability of payment default within the next 12 months (%) 1-2%

25

Probability of payment default within the next 12 months (%) 2%-4.5%

20

Probability of payment default within the next 12 months (%) >4.5%

15

5Altman Model: Creditworthy Company

20Altman Model: Bankruptcy is not likely

15 Altman Model: Grey Zone 10Altman Model: Bankruptcy likely

5

6Taffler Model: Creditworthy Company

20Taffler Model: Bankruptcy is not likely

15 Taffler Model: Grey Zone 10Taffler Model: Bankruptcy likely

5

7 Avg Invoice payment <5 days 20Avg Invoice payment 5-10 days

15Avg Invoice payment 10-15 days

10Avg Invoice payment >15 days

5

Credit RiskTotal Score= 125

NA

1 (0)External Credit Rating

not available BBB+

2 (25)Internal Credit Rating

ReliabilityRisk below

Normal

3 (25)

Probability of payment

default

within the next 12 months 1.96%

4 (25)

Credit Risk

Bankruptcy

is not likely

5 (15)

Altman Model

6 (15)

Taffler ModelBankruptcy

is not likely

Average Invoice

payment days

7 (20)

<2 days

Score 750+ 675-749 600-674 <600

250 200 150 100

Operational Risk

1Measured battery energy <2%

of the manufactured declared

content

50

Measured battery energy

>2%,<5% of the manufactured

declared content

40

Measured battery energy

>5%,<8% of the manufactured

declared content

30

Measured battery energy >8%

of the manufactured declared

content

20

2 Insurance's cover 100% of EV

scooters100

Insurance's cover >75% of EV

scooters80

Insurance's cover 50-75% of

EV scooters60

Insurance's cover <50% of EV

scooters40

3 Total daily trips for an EV

scooter >8100

Total daily trips for an EV

scooter 5-880

Total daily trips for an EV

scooter 3-560

Total daily trips for an EV

scooter 3-540

Operational RiskTotal Score= 190

2%

1 (50)The measured C/3

battery energy was

1.9669 KWHr

Operational Risk

100%

2 (100)Insurance cover of EV

scooters 2

3 (40)Average Number of trips

for EV scooters

Thank you