RATING RATIONALE
08Mar2024
Spectrum Foods Ltd.
Brickwork Ratings reaffirms the long term rating for the Bank Loan Facilities of Rs. 11.34 Crs. of Spectrum Foods Ltd. and retains the ratings in the Issuer Not Cooperating category, based on best available information, as the issuer did not cooperate.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (12 Dec 2022) |
Present | ||
| Fund Based | 11.34 | 11.34 | Long Term |
BWR D
ISSUER NOT COOPERATING* /Reaffirmation |
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
| Grand Total | 11.34 | 11.34 | (Rupees Eleven Crores and Thirty Four lakhs Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.
RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION
Brickwork Ratings has reaffirmed the long term rating at BWR D for the bank loan facilities of Rs. 11.34 Crs of Spectrum Foods Ltd., while retaining the same in the Issuer Not Cooperating’ category, based on best available information as the Issuer did not cooperate.
BWR had initially assigned a rating of BWR B/ Stable for the Long term Bank Loan Facility on 3 February, 2016. On 25 March, 2017 the rating was reaffirmed at BWR B/Stable. On 28 September, 2018 the Long term rating was downgraded to BWR D. On 28 March, 2020 the long term rating was reaffirmed at BWR D and migrated to "Issuer Not Cooperating". On 18 August, 2021 the long term rating was reaffirmed at BWR D under "Issuer Not Cooperating". On 12 December, 2022 the rating was reaffirmed at BWR D with continuation in the Issuer Not Cooperating Category.
The rating was due for a review in December 2023. BWR took up with the issuer and its banker over emails and through telephone calls to provide the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the company and its banker, including the absence of specific information on the status of default / curing of default, BWR is unable to assess the company’s financial performance or its ability to service its debt and maintain a valid rating. The company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, continued lack of management cooperation, non submission of NDS, and lack of banker’s feedback, the long-term rating is reaffirmed, and continued in the Issuer Not Cooperating* category, as the Issuer did not cooperate.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of the information required for a review of the rating.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Food Products | Other Food Products |
The company was incorporated as Spectrum Leasing and Finance Limited in February 1994, as a part of the Saboo Group (SG) of companies. The name was subsequently changed to SFL in November 1998. The group is promoted by Mr. Girdhar Saboo and his family members and has interests in refining of salt, trading of spices, and power generation. SFL is listed on the Bombay Stock Exchange since February 2001. SFL is presently engaged in the trading of salt, that is produced by its group company, Saboo Sodium Chloro Limited, and power generation through wind mill. The company’s work office and plant is located in Jaipur, Rajasthan and new plant for Spices started its commercial operation in January 2017.
The company is listed on BSE.
(As per information received during CY2020 review)
Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document
There is no Non Co-operation with other CRAs.
ANY OTHER INFORMATIONNil
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 11.34 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
12Dec2022 |
BWR D
(ISSUER NOT COOPERATING* /Reaffirmation) |
18Aug2021 |
BWR D
(ISSUER NOT COOPERATING*/Reaffirmed^) |
| Grand Total | 11.34 | (Rupees Eleven Crores and Thirty Four lakhs Only) | |||||||
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Hyperlink/Reference to applicable Criteria- General Criteria
- Approach to Financial Ratios
- What Constitutes Non-Cooperation
- Default Recognition and Default Curing Period
- Manufacturing Companies
| Analytical Contacts | |
|---|---|
|
Chinmaya R Rating Analyst chinmaya.r@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
|---|---|---|---|---|---|---|
| 1 | State Bank Of India (SBI) | Term LoanOut-standing | 9.34 | _ | 9.34 | |
| 2 | State Bank Of India (SBI) | Cash CreditSanctioned | 2.00 | _ | 2.00 | |
| Total | 11.34 | 0.00 | 11.34 | |||
| TOTAL (Rupees Eleven Crores and Thirty Four lakhs Only) | ||||||
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
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