RATING RATIONALE
10Dec2024

Tara Jewels Ltd

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.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(19 Sep 2023)
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)
#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

The rating was due for annual review in September 2023 and BWR has followed up with the company through several emails . 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.

 

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 rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of the information required for a review of the rating.

ABOUT THE ENTITY
Macro 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.

 

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

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 486.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Sep2023
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*)
Non Fund Based ST 257.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Sep2023
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*)
Grand Total 743.00 (Rupees Seven Hundred Forty Three Crores Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Karan Ahluwalia

Ratings Analyst karan.ahluwalia@brickworkratings.com

Niraj Kumar Rathi

Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Tara Jewels 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 Axis Bank Ltd. Cash CreditSanctioned 30.00 _ 30.00 Simple##
2 Axis Bank Ltd. BG/ILCSanctioned _ 20.00 20.00 Simple##
3 Bank of Baroda BG/ILCSanctioned _ 30.00 30.00 Simple##
4 Bank of Baroda Cash CreditSanctioned 25.50 _ 25.50 Simple##
5 Bank of India Cash CreditSanctioned 48.00 _ 48.00 Simple##
6 Bank of India BG/ILCSanctioned _ 23.00 23.00 Simple##
7 Canara Bank Cash CreditSanctioned 35.00 _ 35.00 Simple##
8 Canara Bank BG/ILCSanctioned _ 20.00 20.00 Simple##
9 Central Bank of India BG/ILCSanctioned _ 20.00 20.00 Simple##
10 Central Bank of India Cash CreditSanctioned 30.00 _ 30.00 Simple##
11 Export Import Bank of India Cash CreditSanctioned 25.00 _ 25.00 Simple##
12 Export Import Bank of India BG/ILCSanctioned _ 25.00 25.00 Simple##
13 IDBI Bank BG/ILCSanctioned _ 10.00 10.00 Simple##
14 IDBI Bank Cash CreditSanctioned 15.00 _ 15.00 Simple##
15 Punjab National Bank Cash CreditSanctioned 47.50 _ 47.50 Simple##
16 Punjab National Bank BG/ILCSanctioned _ 68.00 68.00 Simple##
17 State Bank Of India (SBI) Cash CreditSanctioned 25.00 _ 25.00 Simple##
18 State Bank Of India (SBI) Cash CreditSanctioned 120.00 _ 120.00 Simple##
19 Union Bank of India Cash CreditSanctioned 60.00 _ 60.00 Simple##
20 Union Bank of India Cash CreditSanctioned 25.00 _ 25.00 Simple##
21 Union Bank of India BG/ILCSanctioned _ 41.00 41.00 Simple##
Total 486.00 257.00 743.00
TOTAL (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.

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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