PR

Press Release
KAMA JEWELRY PRIVATE LIMITED (ERSTWHILE KAMA SCHACHTER JEWELRY PRIVATE LIMITED)
November 02, 2023
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	125.13	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	47.77	-	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	172.90	-	-

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from 'ACUITE BBB-' (read as ACUITE triple B) and its short term rating to 'ACUITE A4+'(read as ACUITE A four plus) from 'ACUITE A3' (read as ACUITE A three) on the Rs. 172.90 crore bank facilities of Kama Jewelry Private Limited(KJPL). The rating downgrade is on the account of information risk. This rating is now an indicative rating and is based on the best information available.

About the Company

Incorporated as private limited company in 1993, Kama Jewelry Private Limited (KJPL) is based out of Mumbai. The operations were started in 1996. The company is promoted by Mr. Colin Shah, and the Israel-based Leo Schachter group. KJPL is engaged in manufacturing and exports of gold and diamond-studded gold jewellery. The company’s manufacturing facility is located at Goregaon and SEEPZ, Mumbai. It also has marketing and sales office at New York. The company caters to domestic as well as export markets.

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 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 endeavoured 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

None

Liquidity Position

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

Outlook

Not applicable

Other Factors affecting Rating

None

Key Financials:

Latest financials not provided by the client.

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
16 Aug 2022	Packing Credit	Long Term	42.90	ACUITE BBB- \| Negative (Reaffirmed)
	Packing Credit	Long Term	12.00	ACUITE BBB- \| Negative (Reaffirmed)
	Post Shipment Credit	Short Term	12.00	ACUITE A3 (Reaffirmed)
	Proposed Bank Facility	Long Term	2.90	ACUITE BBB- \| Negative (Reaffirmed)
	Post Shipment Credit	Short Term	22.17	ACUITE A3 (Reaffirmed)
	Term Loan	Long Term	6.90	ACUITE BBB- \| Negative (Reaffirmed)
	Post Shipment Credit	Short Term	13.60	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	48.50	ACUITE BBB- \| Negative (Reaffirmed)
	Cash Credit	Long Term	4.85	ACUITE BBB- \| Negative (Reaffirmed)
	Packing Credit	Long Term	7.08	ACUITE BBB- \| Negative (Reaffirmed)
17 May 2021	Post Shipment Credit	Short Term	13.60	ACUITE A3 (Reaffirmed)
	Proposed Bank Facility	Long Term	2.90	ACUITE BBB- \| Negative (Reaffirmed)
	Post Shipment Credit	Short Term	12.00	ACUITE A3 (Reaffirmed)
	Packing Credit	Long Term	12.00	ACUITE BBB- \| Negative (Reaffirmed)
	Packing Credit	Long Term	42.90	ACUITE BBB- \| Negative (Reaffirmed)
	Post Shipment Credit	Short Term	22.17	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	48.50	ACUITE BBB- \| Negative (Reaffirmed)
	Packing Credit	Long Term	7.08	ACUITE BBB- \| Negative (Reaffirmed)
	Cash Credit	Long Term	4.85	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	6.90	ACUITE BBB- \| Negative (Reaffirmed)
20 Mar 2020	Term Loan	Long Term	6.90	ACUITE BBB- \| Stable (Assigned)
	Post Shipment Credit	Short Term	4.92	ACUITE A3 (Assigned)
	Cash Credit	Long Term	59.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Bank Facility	Long Term	3.00	ACUITE BBB- \| Stable (Assigned)
	Packing Credit	Long Term	12.00	ACUITE BBB- \| Stable (Assigned)
	Post Shipment Credit	Short Term	27.00	ACUITE A3 (Assigned)
	Packing Credit	Long Term	51.50	ACUITE BBB- \| Stable (Assigned)
	Post Shipment Credit	Short Term	18.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	12.00	ACUITE BBB- \| Stable (Assigned)
	Post Shipment Credit	Short Term	17.25	ACUITE A3 (Assigned)
	Packing Credit	Long Term	7.33	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	4.85	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
ICICI Bank Ltd	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	48.50	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Bank of India	Not Applicable	Metal Loan	Not Applicable	Not Applicable	Not Applicable	6.90	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Bank of India	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	12.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Axis Bank	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	7.08	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
HDFC Bank Ltd	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	42.90	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Axis Bank	Not Applicable	Post Shipment Credit	Not Applicable	Not Applicable	Not Applicable	13.60	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Bank of India	Not Applicable	Post Shipment Credit	Not Applicable	Not Applicable	Not Applicable	12.00	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Indusind Bank Ltd	Not Applicable	Post Shipment Credit	Not Applicable	Not Applicable	Not Applicable	22.17	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	2.90	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Tanvi Kadam Analyst - Rating Operations Tel: 022-49294065 tanvi.kadam@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.