Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 743.00 Crs. of Tara Jewels Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (28 Sep 2020) |
Present | ||
Fund Based | 486.00 | 486.00 | Long Term |
BWR D Issuer Not Cooperating
|
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Non Fund Based | 257.00 | 257.00 | Short Term |
BWR D Issuer Not Cooperating
|
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Grand Total | 743.00 | 743.00 | (Rupees Seven Hundred Forty Three Crores Only) |
BWR reaffirms the rating of bank loan facilities of Tara Jewels Ltd. with continuation of Issuer Non Cooperation; based on best available information
Nature of Non Cooperation:
The rating of the Company was due for review on September 28, 2021. BWR took up with the issuer to provide required information for review of ratings through emails dated September 27, 2021 and September 28, 2021 and telephone calls. Despite the best efforts of BWR to get at least the required information for review, the entity has not provided the same. In absence of adequate information, BWR is unable to assess the Issuer’s / Company’s performance and its ability to service its debt and maintain a valid rating.
LIMITATIONS OF THE RATING
Information availability risk is the key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress.
ABOUT THE ENTITYBTara Jewels Limited (TJL) was incorporated in 1998 as Tara Ultimo Pvt Ltd (TUPL) by Mr. Rajeev Sheth (current Chairman and MD). In FY09, Tara Ultimo Pvt. Ltd. (TUPL) was merged with T Two International Pvt. Ltd. (TTIPL), trading in diamond and jewelry, and Tara Jewels Exports Pvt. Ltd. (TJEPL), engaged in cutting and polishing of diamonds for the Tara group. Post-merger, TUPL was renamed ‘Tara Jewels Pvt Ltd.’ (TJPL). In September 2010, the company was converted into a public limited company and the name was changed to Tara Jewels Ltd. (TJL). TJL acted as an integrated player in the jewelry industry with presence in designing, manufacture and retailing of diamond studded jewelry.
The company has been incurring cash losses since FY18 on account of weak demand for its products. National Company Law Tribunal (NCLT), Mumbai branch had admitted petition for Insolvency proceedings initiated by lenders against the Company vide order dated November 1, 2018 for Corporate Insolvency proceedings under Insolvency and Bankruptcy Code.
Tara Jewels have gone into liquidation with effect from 30th July 2019 as per order issued by NCLT.
Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.
Facilities | Current Rating (2021) | 2021 (History) | 2020 | 2019 | 2018 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 486.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
28Sep2020 |
BWR D Issuer Not Cooperating
() |
21Feb2019 |
BWD Issuer Not Cooperating
() |
NA |
NA
|
Non Fund Based | ST | 257.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
28Sep2020 |
BWR D Issuer Not Cooperating
() |
21Feb2019 |
BWR D Issuer Not Cooperating
() |
NA |
NA
|
Grand Total | 743.00 | (Rupees Seven Hundred Forty Three Crores Only) |
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Forum Rushit Parekh Manager - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 forum.rp@brickworkratings.com |
Bal Krishna Piparaiya Senior Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|---|
1 | Axis Bank Ltd. | Cash CreditSanctioned | 30.00 | _ | 30.00 |
2 | Axis Bank Ltd. | BG/ILCSanctioned | _ | 20.00 | 20.00 |
3 | Bank of India | Cash CreditSanctioned | 48.00 | _ | 48.00 |
4 | Bank of India | BG/ILCSanctioned | _ | 23.00 | 23.00 |
5 | Canara Bank | Cash CreditSanctioned | 35.00 | _ | 35.00 |
6 | Canara Bank | BG/ILCSanctioned | _ | 20.00 | 20.00 |
7 | Central Bank of India | Cash CreditSanctioned | 30.00 | _ | 30.00 |
8 | Central Bank of India | BG/ILCSanctioned | _ | 20.00 | 20.00 |
9 | Union Bank of India | Cash CreditSanctioned | 25.00 | _ | 25.00 |
10 | Union Bank of India | BG/ILCSanctioned | _ | 41.00 | 41.00 |
11 | Export Import Bank of India | Cash CreditSanctioned | 25.00 | _ | 25.00 |
12 | Export Import Bank of India | BG/ILCSanctioned | _ | 25.00 | 25.00 |
13 | IDBI Bank | Cash CreditSanctioned | 15.00 | _ | 15.00 |
14 | IDBI Bank | BG/ILCSanctioned | _ | 10.00 | 10.00 |
15 | Punjab National Bank | Cash CreditSanctioned | 47.50 | _ | 47.50 |
16 | Punjab National Bank | BG/ILCSanctioned | _ | 68.00 | 68.00 |
17 | State Bank Of India (SBI) | Cash CreditSanctioned | 120.00 | _ | 120.00 |
18 | State Bank Of India (SBI) | Cash CreditSanctioned | 25.00 | _ | 25.00 |
19 | Union Bank of India | Cash CreditSanctioned | 60.00 | _ | 60.00 |
20 | Bank of Baroda | Cash CreditSanctioned | 25.50 | _ | 25.50 |
21 | Bank of Baroda | BG/ILCSanctioned | _ | 30.00 | 30.00 |
Total | 486.00 | 257.00 | 743.00 | ||
TOTAL (Rupees Seven Hundred Forty Three Crores Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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