Sahayata Microfinance Ratings Downgraded To Account For Financial Fraud
The downgrade reflects instances of delay by Sahayata in servicing its debt; the delays have been caused by its insolvent financial position and weak liquidity. Based on discussions with Sahayata’s current management, CRISIL understands that the company is in the process of discussing various options with its lenders, given its inability to make debt repayments in the near term. After the suspension of Sahayata’s senior management in September 2011, on grounds of financial misrepresentation and fraud, the company’s board decided to conduct an independent audit of its operations....