Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 110.04 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 39.50 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 149.54 - -
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 149.54 crore bank facilities of Jaydeep Cotton Fibres Private Limited (JCFPL) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Incorporated in 1997, Jaydeep Cotton Fibres Pvt. Ltd. (JCFPL) is involved in ginning and pressing of raw cotton. It is also engaged in trading of raw cotton, cotton bales and other agro-based commodities. JCFPL also has a power unit, namely “Pan Power” by installing a solar project in Rajkot, Gujarat. At present, the company is headed by Mr. Chirag Pan and Mr. Alpesh Pan. The factory is located at Shapar, Gujarat. The company markets its cotton bales under the brand name “Jaycot”, which is recognised in domestic and international market.

 
About the Group

­The company is a part of the Jaycot group, which has diversified business interests across cement, laminate manufacturing, agriculture equipment and agro-commodities trading, health sector. Set up in 1982, Gujarat based Pan Agri Export (PAE) is a partnership firm engaged into ginning & pressing of raw cotton and manufacturing cottonseed oil. The partners are Mr. Mansukhbhai Patel, Mrs. Ila Arvindbhai Patel, Mr. Arvindbhai Patel, Mr. Chiragbhai Patel and Mr. Alpeshbhai Patel. The firm is a part of the Pan group, which has diversified business interest across cement, laminate manufacturing, agriculture equipment and agrocommodities trading, health sector.

 
Unsupported Rating

­Not Applicable

 
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 non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.
This rating is, therefore, being 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 indicative 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 Acuite to comment upon."

 
Liquidity Position

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

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­None

 
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• 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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
26 Jun 2023 Bills Discounting Short Term 10.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Short Term Bank Facility Short Term 29.50 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Working Capital Term Loan Long Term 25.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 75.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.86 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 9.18 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
07 Apr 2022 Working Capital Term Loan Long Term 25.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 75.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Term Loan Long Term 0.86 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Proposed Long Term Bank Facility Long Term 9.18 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Bills Discounting Short Term 10.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
Proposed Short Term Bank Facility Short Term 29.50 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
12 Jan 2021 Bills Discounting Short Term 10.00 ACUITE A2 (Reaffirmed)
Proposed Short Term Bank Facility Short Term 29.50 ACUITE A2 (Reaffirmed)
Cash Credit Long Term 75.00 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 9.18 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 0.86 ACUITE BBB+ | Stable (Reaffirmed)
Working Capital Term Loan Long Term 25.00 ACUITE BBB+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Kotak Mahindra Bank Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 75.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.18 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 29.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.86 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Kotak Mahindra Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

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