RATING RATIONALE
27Sep2022

Tara Jewels Ltd

Brickwork Ratings reaffirms the ratings 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.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(29 Sep 2021)
Present
Fund Based 486.00 486.00 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 257.00 257.00 Short Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
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

Rating is due for annual surveillance in Sep 2022.

The company was being followed up for surveillance of its rating, but no information was received despite close follow-up. BWR took up with the company to provide the required information over emails dated August 26, 2022, September 5, 2022, September 6, 2022, September 13, 2022, and September 19, 2022, during the period. As required minimum, relevant information was not provided by the company reflecting non-cooperation by the issuer and poor corporate governance. 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 Company’s performance and its ability to service its debt and maintain a valid rating

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 and non-cooperation by the firm to provide the required information for a review of the assigned rating may also be accompanied by financial stress.

ABOUT THE ENTITY

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 Insolvency and Bankruptcy Code.

Tara Jewels have 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

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2021 2020 2019
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)
29Sep2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
28Sep2020
BWR D
(ISSUER NOT COOPERATING*)
21Feb2019
BWR D
(ISSUER NOT COOPERATING*)
Non Fund Based ST 257.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
29Sep2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
28Sep2020
BWR D
(ISSUER NOT COOPERATING*)
21Feb2019
BWR D
(ISSUER NOT COOPERATING*)
Grand Total 743.00 (Rupees Seven Hundred Forty Three Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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 Criteria
Analytical Contacts

Dixita Rajesh Bhandari

Ratings Analyst dixita.b@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
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.)
1 Axis Bank Ltd. Cash CreditSanctioned 30.00 _ 30.00
2 Axis Bank Ltd. BG/ILCSanctioned _ 20.00 20.00
3 Bank of India BG/ILCSanctioned _ 23.00 23.00
4 Bank of India Cash CreditSanctioned 48.00 _ 48.00
5 Canara Bank Cash CreditSanctioned 35.00 _ 35.00
6 Canara Bank BG/ILCSanctioned _ 20.00 20.00
7 Central Bank of India BG/ILCSanctioned _ 20.00 20.00
8 Central Bank of India Cash CreditSanctioned 30.00 _ 30.00
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 BG/ILCSanctioned _ 25.00 25.00
12 Export Import Bank of India Cash CreditSanctioned 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 BG/ILCSanctioned _ 68.00 68.00
16 Punjab National Bank Cash CreditSanctioned 47.50 _ 47.50
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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