Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SFL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SFL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of SFL revised to ‘CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating’ from ‘CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating’.

CRISIL Ratings had earlier consolidated the business and financial risk profile of Sarveshwar Overseas Ltd (SOL) with SFL; together referred as Sarveshwar group due to significant business and financial fungibility between the entities. SFL holds 99% shareholding in SOL. Further, both the entities are in the same line of business and have common management. Further, both the entities have common customer and supplier base and market their product under the common brand name. CRISIL is now consolidating SOL and SFL along with Himalayan Bio Organic Foods Pvt Ltd (HBOP) and Natural Global Foods DMCC (NGFD) as these two entities have been carved out of SFL and SOL to focus on organic business and UAE operations, respectively. Further, both are wholly owned subsidiaries of SFL.

Key Financial Indicators (Standalone)

Note for Media:
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CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
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