Press Release SHEIKH FARID FINVEST LIMITED September 01, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Fixed Deposits (FD)	2.00	ACUITE BB- | Downgraded | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	2.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded the rating to ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 2.00 Cr. Fixed Deposit facility of Sheikh Farid Finv est Limited (SFFL). The rating continues to be flagged as an ‘Issuer NotCooperating’ based on best av ailable information.

About the Company

­­Punjab-based NBFC, SFFL was incorporated in 1996. The company is into asset financing (mainly personal and commercial vehicles with the ticket size ranging from Rs.60,000 to Rs.10,00,000 and tenure of 12 to 36 months. The company operates across five districts of Punjab namely Moga, Faridkot, Ferozepur, Muktsar and Bhatinda.

Non-cooperation by the issuer/borrower:

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & rev iew of the rating. However, the issuer / borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.

Limitation regarding information availability:

­The rating is based on information av ailable from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité has endeavoured to gather information about the Acuité Ratings & Research Limited www.acuite.in entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicativ e credit rating is based.

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

­No information provided by the issuer / available for Acuité to comment upon.

Material Covenants

­Not Applicable

Liquidity Position

­No information provided by the issuer / available for Acuité to comment upon.

Outlook

­­Not Applicable

Other Factors affecting Rating

­­Not Applicable

Status of non-cooperation with previous CRA

­Not Applicable

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

• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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 • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.htm • Fixed Deposit Programmes: https://www.acuite.in/view-rating-criteria-64.htm

Note on Complexity Levels of the Rated Instrument

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 01 Jul 2022 Proposed Bank Facility Long Term 3.50 ACUITE BB (Withdrawn and Issuer not co-operating*) Fixed Deposit Program Long Term 2.00 ACUITE BB ( Issuer not co-operating*) Working Capital Demand Loan Long Term 6.50 ACUITE BB (Withdrawn and Issuer not co-operating*) 01 Sep 2021 Proposed Bank Facility Long Term 3.50 ACUITE BB (Withdrawn and Issuer not co-operating*) Working Capital Demand Loan Long Term 6.50 ACUITE BB (Withdrawn and Issuer not co-operating*) Fixed Deposit Program Long Term 2.00 ACUITE FBB ( Issuer not co-operating*) 09 Sep 2020 Proposed Bank Facility Long Term 3.50 ACUITE BB (Downgraded and Issuer not co-operating*) Working Capital Demand Loan Long Term 6.50 ACUITE BB (Downgraded and Issuer not co-operating*) Fixed Deposit Program Long Term 2.00 ACUITE FBB (Downgraded and Issuer not co-operating*) 30 Sep 2019 Proposed Bank Facility Long Term 3.50 ACUITE BB+ (Issuer not co-operating*) Fixed Deposit Program Long Term 2.00 ACUITE FBB+ (Issuer not co-operating*) Working Capital Demand Loan Long Term 6.50 ACUITE BB+ (Issuer not co-operating*) 05 Oct 2018 Working Capital Demand Loan Long Term 6.50 ACUITE BB+ (Issuer not co-operating*) Proposed Bank Facility Long Term 3.50 ACUITE BB+ (Issuer not co-operating*) Fixed Deposit Program Long Term 2.00 ACUITE FBB+ (Issuer not co-operating*) 03 Mar 2017 Working Capital Demand Loan Long Term 6.50 ACUITE BB+ (Issuer not co-operating*) Proposed Bank Facility Long Term 3.50 ACUITE BB+ (Issuer not co-operating*) 02 Mar 2017 Fixed Deposit Program Long Term 2.00 ACUITE FBB+ (Issuer not co-operating*) 26 Nov 2015 Working Capital Demand Loan Long Term 6.50 ACUITE BB+ | Stable (Assigned) Proposed Cash Credit Long Term 3.50 ACUITE BB+ | Stable (Assigned) Fixed Deposit Program Long Term 2.00 ACUITE FBB+ | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Rating Other Not Applicable Fixed Deposit Program Not Applicable Not Applicable Not Applicable 2.00 ACUITE BB- | Downgraded | Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations 022-49294041 aditya.gupta@acuite.in Radhika Kolwankar Analyst-Rating Operations 022-49294065 radhika.kolwankar@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.