RATING RATIONALE
12Nov2024

Jayatma Industries Ltd.

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.

Particulars
Facilities** 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)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

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.
 

ABOUT THE ENTITY
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.

KEY FINANCIAL INDICATORS

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating AgencyStatus and Reason for Non-CooparationDate of Press Release
CARECARE 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

ANY OTHER INFORMATION

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)
Hyperlink/Reference to applicable Criteria
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
Jayatma Industries Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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