Brickwork Ratings reaffirms the ratings and continues with the 'Issuer not cooperating' category for the Bank Loan Facilities of Rs. 743.00 Crs. of Tara Jewels Ltd based on the best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (27 Sep 2022) |
Present | ||
Fund Based | 486.00 | 486.00 | Long Term |
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Non Fund Based | 257.00 | 257.00 | Short Term |
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 743.00 | 743.00 | (Rupees Seven Hundred Forty Three Crores Only) |
The rating was due for annual review in September 2023 and BWR has followed up with the company through several emails and calls. Despite the best efforts of Brickwork Ratings to get the minimum required information and surveillance mandate for a review, the company has not provided the same. Further, the company has not been submitting the monthly “No Default Statement” (NDS) regularly as required by regulatory guidelines. In the absence of adequate information from the Company, BWR is unable to assess the Company’s financial and business performance and its ability to service its debt and maintain a valid rating.
Hence, based on the non-submission of NDS, inadequate information, and lack of management cooperation, Brickwork Ratings has reaffirmed the long-term and short-term rating to BWR D and continued in the ISSUER NOT COOPERATING category.
The company doesn't have any subsidiaries and has not disclosed the financial information/results/ reports post-2019.
To arrive at its ratings, BWR has assessed the standalone financials of Tara Jewels Ltd (TJL) and has applied its rating methodology as detailed in the Rating Criteria.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.
LIMITATIONS OF THE RATING
Information availability risk is a 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. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Consumer Durables | Consumer Durables | Gems, Jewellery And Watches |
Tara 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 a presence in designing, manufacturing, and retailing 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 the petition for Insolvency proceedings initiated by lenders against the Company vide order dated November 1, 2018, for Corporate Insolvency proceedings under the Insolvency and Bankruptcy Code.
Tara Jewels has gone into liquidation with effect from 30th July 2019 as per an order issued by NCLT.
(Financial information available as on NSE Website)
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. View Previous Document
Not Applicable
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 486.00 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Sep2022 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
29Sep2021 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
28Sep2020 |
BWR D
(ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 257.00 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Sep2022 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
29Sep2021 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
28Sep2020 |
BWR D
(ISSUER NOT COOPERATING*) |
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 | |
---|---|
KunjalDabhi Ratings Analyst kunjal.d@brickworkratings.com |
Bal Krishna Piparaiya Principal 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 Baroda | BG/ILCSanctioned | _ | 30.00 | 30.00 | |
4 | Bank of Baroda | Cash CreditSanctioned | 25.50 | _ | 25.50 | |
5 | Bank of India | Cash CreditSanctioned | 48.00 | _ | 48.00 | |
6 | Bank of India | BG/ILCSanctioned | _ | 23.00 | 23.00 | |
7 | Canara Bank | Cash CreditSanctioned | 35.00 | _ | 35.00 | |
8 | Canara Bank | BG/ILCSanctioned | _ | 20.00 | 20.00 | |
9 | Central Bank of India | BG/ILCSanctioned | _ | 20.00 | 20.00 | |
10 | Central Bank of India | Cash CreditSanctioned | 30.00 | _ | 30.00 | |
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 | BG/ILCSanctioned | _ | 10.00 | 10.00 | |
14 | IDBI Bank | Cash CreditSanctioned | 15.00 | _ | 15.00 | |
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 | 25.00 | _ | 25.00 | |
18 | State Bank Of India (SBI) | Cash CreditSanctioned | 120.00 | _ | 120.00 | |
19 | Union Bank of India | Cash CreditSanctioned | 60.00 | _ | 60.00 | |
20 | Union Bank of India | Cash CreditSanctioned | 25.00 | _ | 25.00 | |
21 | Union Bank of India | BG/ILCSanctioned | _ | 41.00 | 41.00 | |
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 11,560 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.
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