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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 23.00 | ACUITE B- | Upgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 23.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.23.00 Cr. bank facilities of SFS Global Limited .
Subsequently, Acuité has revised and upgraded the long term rating to ‘ACUITE B-’ (read as ACUITE B minus) from ‘ACUITE D’ (read as ACUITE D) on the Rs.23.00 Cr. bank facilities of SFS Global Limited. This rating is now flagged as issuer not cooperating, and rated on account of information risk. Reason For upgrade The rating has been upgraded and revised on an account of banker's feedback that irregularities in account has cleared by the end of May 2022 and the account has regularised from the beginning of June 2022. |
| About the Company |
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About the Company SFS Global Limited (SFS or The Company) was incorporated in 1995 by Mr. J. K. Saboo & Mr. Ram Prakash Saboo. Company registered in Rohtak the company entered into a long-term contact of 30 years with Tata Global Beverages Limited (TGBL) to provide on lease, its facility at Sampla, Haryana along with various ancillary services related with it. SFS is engaged in blending and packaging of Tea. In 2012, SFS entered into a long-term contract of 10 years (renewable for another two terms of 10 years or part at the option of lessor/lessee) with TATA Consumer Products Ltd (TCPL) to provide its facility on lease. As per the contract SFS would also provide various auxiliary services like receiving the raw material (Raw Tea) at its warehouse, blending of various varieties of tea, packaging, storing, management and releasing the same as when demanded by TCPL.
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| Non-cooperation by the issuer/borrower: |
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Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before due date. Acuité believes that information risk is a critical component in such ratings, and non - cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| Limitation regarding information availability: |
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The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
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| Rating Sensitivity |
| No information provided by the issuer / available for Acuite to comment upon |
| Material Covenants |
| None. |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon |
| Outlook |
| Not Applicable. |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 21 (Provisional) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 24.89 | 19.49 |
| PAT | Rs. Cr. | 4.51 | 1.61 |
| PAT Margin | (%) | 18.11 | 8.25 |
| Total Debt/Tangible Net Worth | Times | 1.39 | 1.95 |
| PBDIT/Interest | Times | 3.34 | 2.01 |
| Status of non-cooperation with previous CRA |
| The entity has been rated as issuer non cooperting from ACUITE RATING AND RESEARCH LIMITED on the bank facilities of Rs.23 crore at ACUITE D. |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups |
| Applicable Criteria |
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• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on Complexity Levels of the Rated Instrument |
| https://www.acuite.in/view-rating-criteria-55.htm |
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