RATING RATIONALE
29Nov2022

Krishna Jewels

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 65.00 Crs. of Krishna Jewels based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(26 Nov 2021)
Present
Fund Based 65.00 65.00 Long Term BWR BBB- /Stable
Upgrade and Removed from the INC category
BWR BB + /Stable
ISSUER NOT COOPERATING* /Downgrade
Grand Total 65.00 65.00 (Rupees Sixty Five 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 ratings were due for review in Nov 2022. BWR has consistently taken up with the firm to provide required information for conducting a review of the ratings through emails and telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the firm has not provided the same. The firm has also been irregular in the submission of monthly No Default Statement (NDS). Due to the lack of management cooperation, non-submission of NDS and in the absence of adequate information from the firm, BWR is unable to assess the firm’s financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the non-cooperation by the firm and best available information, Brickwork Ratings has downgraded the ratings to BWR BB+/Stable and migrated the ratings to the ISSUER NOT COOPERATING* category.

*Issuer did not cooperate. Based on best available information.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation 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 information required for a review of the rating.

ABOUT THE ENTITY

Krishna Jewels formerly known as “Kunhikannan Jewellery Gold House”, established in 1985 at Kannur, Kerala, is engaged in the retail trading of jewellery, gold/silver/platinum ornaments, precious/semi precious stones, watches and handicraft goods. The firm’s office and retail outlet, located at Jawahar Road, Thavakkara, Kannur is spread over six floors and has an area of 24000 Sq.ft. Krishna Jewels is BIS Certified.

Mr. C.V Ravindranath is the Managing Partner and he is supported by seven other partners.

Note: As per information available till Nov 2021.

 

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

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 65.00
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
09Aug2021
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
14Apr2020
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
25Feb2019
BWR BBB- Stable
(Reaffirmation)
0.00
NA
26Nov2021
BWR BBB- Stable
(Upgrade and Removed from the INC category)
11Aug2020
BWR BBB- Stable
(Upgrade and Removed from the INC category)
NA
NA
Grand Total 65.00 (Rupees Sixty Five 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

Vineet Krishnan Nair

Senior Ratings Analyst vineet.kn@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Krishna Jewels
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 South Indian Bank Cash CreditSanctioned 65.00 _ 65.00
Total 65.00 0.00 65.00
TOTAL (Rupees Sixty Five Crores Only)
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About Brickwork Ratings

Brickwork 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 12,000 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. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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