|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 110.00 | ACUITE D | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 110.00 | - | - |
| Rating Rationale |
|
Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs. 110.00 Crore bank facilities of Jumbo Finvest India Limited (JFIL).The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.
|
| About the Company |
|
Jaipur based Jumbo Finvest India Limited, was originally incorporated as Ajay Tractors Private Limited (ATPL) in 1998 to carryout tractor dealership business. In 2003, the tractor dealership business was discontinued and ATPL was renamed to Jumbo Finvest India Limited. This was followed by JFIL being registered as a Non Deposit taking – Non Banking Finance Company with RBI. JFIL is a closely held company, promoted by Mr. Ajay Kumar Singh, a first generation entrepreneur. JFIL is engaged in mortgage backed financing and Asset backed financing. The products offered by the company includes Loan against Property, Housing Loans, Commercial vehicle loans, Two wheeler loans, Gold loan along with micro loans and personal loans. The company primarily operates in five states, namely Rajasthan, Madhya Pradesh, Uttar Pradesh, Delhi and Maharashtra. The company operated through a network of 195 branches as on March 31, 2019.
|
| 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.
|
| Rating Sensitivities |
|
No information provided by the issuer / available for Acuite to comment upon.
|
| All Covenants |
|
Not Applicable
|
| Liquidity Position |
|
No information provided by the issuer / available for Acuite to comment upon.
|
| Outlook |
|
Not Applicable
|
| Other Factors affecting Rating |
|
Not Applicable
|
| Key Financials: | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
| Status of non-cooperation with previous CRA |
|
Not Applicable
|
| Any other information |
|
Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
|
| Applicable Criteria |
|
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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.
|
|
| |
|
|
||||||||||||||||||
|
|
Contacts |
|
|
|
About Acuité Ratings & Research |
