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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 34.00 | ACUITE C | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 35.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 69.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long term rating to ‘ACUITE C' (read as ACUITE C)’ from‘ACUITE B+' (read as ACUITE B plus) on bank facilities of Rs 34.00 cr. and reaffirmed the short term rating is ‘ACUITE A4' (read as ACUITE A four) on bank facilities of Rs 35.00 Cr of Jaipur Jewels Global Limited. The rating continues to be flagged as “Issue Not Cooperating”, and is a based on the best available information. The downgrade is on account of delays in servicing of debt obligations as informed by the banker. |
| About the Company |
| Mumbai based Jaipur Jewels Global Limited (JJGL) was incorporated in 2012. The company is engaged in the business of processing, trading and export of all kinds of precious and semiprecious stones including diamonds and pearls, Jewellery and ornaments under the brand name 'Jaipur Jewels'. The company operations are managed by Mr. Amit Subhash Naheta, Mr. Vineet Subhash Naheta, Mr. Subhash Milapchand Naheta and Mr. Amish Manekchand Jhaveri. JJGL has two showrooms located at Nepean Sea Road in Mumbai (1000 sq. feet) and Sunder Nagar Market in New Delhi (1700 sq. feet). It also has its own design studio located at grant road in Mumbai (Maharashtra). The company has also started franchise store in Varanasi (3000 sq. feet) and is in process of launching online store. |
| Non-cooperation by the issuer/borrower: |
| 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 the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies. |
| Limitation regarding information availability: |
| 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 indi cative credit rating is based. |
| 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 |
| Not Applicable |
| Particulars | Unit | FY 20 (Actual) | FY 19 (Actual) |
| Operating Income | Rs. Cr. | 241.94 | 290.28 |
| PAT | Rs. Cr. | 1.87 | 5.07 |
| PAT Margin | (%) | 0.77 | 1.75 |
| Total Debt/Tangible Net Worth | Times | 3.23 | 3.15 |
| PBDIT/Interest | Times | 1.45 | 2.01 |
| Status of non-cooperation with previous CRA |
| Brickworks vide its press release dated 26 July 2021, has classified JJGL as 'Issuer Not Cooperating' and rated 'BWR BB-/Stable/A4'. |
| Any other information |
| None |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 |
| In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in. |
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