PR

Press Release
JYOTI AUTOMOBILES PRIVATE LIMITED
October 25, 2022
Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	14.50	ACUITE BB- \| Reaffirmed \| Issuer not co-operating*	-
Bank Loan Ratings	15.50	-	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	30.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and short-term rating of ‘ACUITE A4+ (read as ACUITE A Four plus) to the Rs. 30.00 crore bank facilities of Jyoti Automobiles Private Limited (JAPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company

JAPL, incorporated in 1998, is a Rajasthan-based company promoted by Mr. Sanjay Nakra and Mr. Rajeev Nakra. The company is an authorised dealer for MSIL since 2009 and is engaged in the sale of new vehicles, pre-owned vehicles (under ‘True Value’), spare parts and accessories.

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 continues to be 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."

Material Covenants

None

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

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

• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
27 Jul 2021	Inventory Funding	Short Term	3.55	ACUITE A4+ ( Issuer not co-operating*)
	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ ( Issuer not co-operating*)
	Term Loan	Long Term	8.43	ACUITE BB- (Downgraded and Issuer not co-operating*)
	Secured Overdraft	Long Term	5.50	ACUITE BB- (Downgraded and Issuer not co-operating*)
	Cash Credit	Short Term	6.50	ACUITE A4+ ( Issuer not co-operating*)
	Channel Financing	Short Term	3.00	ACUITE A4+ ( Issuer not co-operating*)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ ( Issuer not co-operating*)
	Proposed Working Capital Demand Loan	Long Term	0.57	ACUITE BB- (Downgraded and Issuer not co-operating*)
29 Apr 2020	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ (Issuer not co-operating*)
	Channel Financing	Short Term	3.00	ACUITE A4+ (Issuer not co-operating*)
	Term Loan	Long Term	8.43	ACUITE BB (Issuer not co-operating*)
	Proposed Working Capital Demand Loan	Long Term	0.57	ACUITE BB (Issuer not co-operating*)
	Secured Overdraft	Long Term	5.50	ACUITE BB (Issuer not co-operating*)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Short Term	6.50	ACUITE A4+ (Issuer not co-operating*)
	Inventory Funding	Short Term	3.55	ACUITE A4+ (Issuer not co-operating*)
08 Mar 2019	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ (Issuer not co-operating*)
	Secured Overdraft	Long Term	5.50	ACUITE BB (Issuer not co-operating*)
	Cash Credit	Short Term	6.50	ACUITE A4+ (Issuer not co-operating*)
	Inventory Funding	Short Term	3.55	ACUITE A4+ (Issuer not co-operating*)
	Proposed Bank Facility	Long Term	0.57	ACUITE BB (Issuer not co-operating*)
	Channel Financing	Short Term	3.00	ACUITE A4+ (Issuer not co-operating*)
	Term Loan	Long Term	8.43	ACUITE BB (Issuer not co-operating*)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ (Issuer not co-operating*)
02 Jan 2018	Term Loan	Long Term	8.43	ACUITE BB (Issuer not co-operating*)
	Secured Overdraft	Long Term	5.50	ACUITE BB (Issuer not co-operating*)
	Inventory Funding	Short Term	3.55	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Short Term	6.50	ACUITE A4+ (Issuer not co-operating*)
	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ (Issuer not co-operating*)
	Channel Financing	Short Term	3.00	ACUITE A4+ (Issuer not co-operating*)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ (Issuer not co-operating*)
	Proposed Bank Facility	Long Term	0.57	ACUITE BB (Issuer not co-operating*)
01 Nov 2016	Term Loan	Long Term	8.43	ACUITE BB \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	5.50	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Short Term	3.55	ACUITE A4+ (Reaffirmed)
	Cash Credit	Short Term	6.50	ACUITE A4+ (Reaffirmed)
	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	3.00	ACUITE A4+ (Reaffirmed)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ (Reaffirmed)
	Proposed Working Capital Demand Loan	Long Term	0.57	ACUITE BB \| Stable (Assigned)
18 Aug 2015	Term Loan	Long Term	4.48	ACUITE BB \| Stable (Assigned)
	Secured Overdraft	Long Term	4.50	ACUITE BB \| Stable (Assigned)
	Inventory Funding	Short Term	3.55	ACUITE A4+ (Assigned)
	Cash Credit	Short Term	6.50	ACUITE A4+ (Assigned)
	Ad-hoc limits (Fund Based)	Short Term	1.95	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	3.00	ACUITE A4+ (Assigned)
	Bank Guarantee	Short Term	0.50	ACUITE A4+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
State Bank of India	Not Applicable	Ad-hoc Limits (Fund Based)	Not Applicable	Not Applicable	Not Applicable	1.95	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	0.50	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	6.50	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Indusind Bank Ltd	Not Applicable	Channel/Dealer/Vendor Financing	Not Applicable	Not Applicable	Not Applicable	3.00	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
HDFC Bank Ltd	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	3.55	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Working Capital Demand Loan	Not Applicable	Not Applicable	Not Applicable	0.57	ACUITE BB- \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not Applicable	Secured Overdraft	Not Applicable	Not Applicable	Not Applicable	5.50	ACUITE BB- \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not Applicable	Term Loan	Not available	Not available	Not available	8.43	ACUITE BB- \| Reaffirmed \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.