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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 21.37 | ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 3.00 | - | ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 24.37 | - | - |
| Rating Rationale |
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Acuité has reaffirmed & withdrawn the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term to ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 24.37 crore bank facilities of Jumps Auto Industries Limited (Jumps). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.
The rating withdrawal is in accordance with the Acuité's policy on withdrawal of rating. The rating is being withdrawn on account of the request received from the firm and No Objection Certificate received from the banker. |
| About the Company |
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The Gurgaon-based Jumps incorporated in 1999 was converted into a public limited company in 2004 and is promoted by Mr. Joginder Pal Malhotra and Mr. Sanjay Malhotra. The company is engaged in the manufacture and export of auto electric components for commercial vehicles, tractors and stationary engines. The group caters to the domestic as well as overseas market including the United Kingdom, United States of America, South Africa, France, Germany etc. It caters to original equipment manufacturers (OEMs), Tier I suppliers and the aftermarket. The product range includes starter motors, alternators, solenoid switches, and armatures, to name a few.
It also caters to the household appliance industry and other industries. Major customers are Johnsons Control, Rollax GmbH & Co. KG and Bosch Siemens Hausgeräte Group located in Germany and Poland. Jumps and its wholly-owned German subsidiary, viz. Bhavya Jumps GmbH is referred to as the ‘Jumps group’. |
| Non-cooperation by the issuer/borrower: |
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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, therefore, being flagged as “Issuer notcooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| 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 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 |
| Status of non-cooperation with previous CRA |
| None |
| 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 |
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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 |
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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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