Brickwork Ratings downgrades the long-term rating, reaffirms the short-term rating and continues the ratings under ISSUER NOT COOPERATING* category for the Bank Loan Facilities of Rs. 29.50 Crs. of Jayatma Industries Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (04 Sep 2023) |
Present | ||
Fund Based | 15.00 | 15.00 | Long Term |
BWR B- /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
14.50 | 14.50 | Short Term |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
|
Grand Total | 29.50 | 29.50 | (Rupees Twenty Nine Crores and Fifty lakhs Only) |
Brickwork Ratings (BWR) downgraded the long-term rating and reaffirms the short-term rating for the bank loan facilities aggregating to Rs.29.50 crores of Jayatma Industries Ltd. at BWR B-/Stable/A4 and continued the ratings under the ISSUER NOT COOPERATING* category on 04Sep2023, based on the best available information. The ratings were due for review in September 2024. BWR has consistently contacted the entity through emails and telephone calls to obtain the requisite information for the review of the ratings. Despite BWR's best efforts to secure at least the minimum required information, the entity has not provided the necessary details for the review and has not been submitting the monthly "No Default Statement" (NDS) as required by regulatory guidelines. Due to the lack of management cooperation, BWR is unable to assess the entity’s financial performance and its ability to service its debt and maintain a valid rating. Therefore, based on the best available information, continued lack of management cooperation, non-submission of NDS and in accordance with extant regulatory requirements, BWR downgrades the long-term rating to BWR C and reaffirms the short-term rating at BWR A4 and continues the ratings under ISSUER NOT COOPERATING* category.
Lenders and investors are advised to exercise due caution when using the rating that mentions "Issuer Not Cooperating*" as the rating lacks any projections or forward-looking components, having been arrived at based on the best available information without any interaction with the management or bankers. Such non-cooperation by a rated entity may indicate a deterioration in its credit risk profile.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally 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 withholding of information required for a review of the rating.
Macro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Textiles | Textiles & Apparels | Other Textile Products |
Jayatma Industries Limited, a flagship company of the P. Jayantilal Group based in Ahmedabad, Gujarat, was established on 17th September 1983 and has been operating for over 41 years. Originally known as Santaram Spinners Ltd., the company rebranded in November 2018 and transitioned to a public company in 1994. Jayatma Industries is primarily engaged in the cotton ginning business and also trades in cotton yarn, cotton bales, and cotton seeds. The company is led by Mr. Nirav Kalyanbhai Shah, with a seasoned team of directors, including Premal Rajnikant Joshi, Toshi Mehta, Janak Gautambhai Nanavaty, and Rajan Priyakant Parikh, whose collective expertise and average age of 52.84 years bring substantial experience to the organization.
Note: Above information as per data available with BWR as of 13th March 2020 and publicly available information.
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
Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
---|---|---|
CARE | CARE Ratings has continued the ratings assigned to the bank facilities of Jayatma Industries Limited under the Issuer Not Cooperating category, due to its inability to conduct a review in the absence of requisite information from the company. | 27Aug2024 |
Not Applicable.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 15.00 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
04Sep2023 |
BWR B- Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
07Jun2022 |
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*) |
01Jun2021 |
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*) |
Fund Based | ST | 14.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
04Sep2023 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
NA |
NA
|
Non Fund Based | ST | 0.00 |
NA
|
NA |
NA
|
07Jun2022 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
01Jun2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 29.50 | (Rupees Twenty Nine Crores and Fifty lakhs Only) |
Analytical Contacts | |
---|---|
Likith M S Rating Analyst likith.ms@brickworkratings.com |
Suryanarayan N Associate Director - Ratings suryanarayan.n@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.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Union Bank of India | Bill Discounted (BD)Sanctioned | _ | 14.50 | 14.50 | Simple## |
2 | Union Bank of India | Cash Credit (WHR)Sanctioned | 15.00 | _ | 15.00 | Simple## |
Total | 15.00 | 14.50 | 29.50 | |||
TOTAL (Rupees Twenty Nine Crores and Fifty lakhs 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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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