| Jayant Agro-Organics Limited | ||||||
| Issuer not cooperating, based on best-available information; Ratings migrated to CRISIL BB+ / Stable / CRISIL A4+ Issuer Not Cooperating | ||||||
| Rating Action | ||||||
| ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities | ||||||
| *Issuer did not cooperate; based on best-available information | ||||||
| Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'. |
Non cooperation by Issuer CRISIL Ratings has been consistently following up with Jayant Agro-Organics Limited (JAOL) for obtaining information through letters and emails dated February 18, 2022, February 23, 2022 and December February 25, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative.
‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’ |
Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of JAOL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality.
CRISIL Ratings believes that investors, lenders, and all other market participants should exercise due caution when using the rating assigned/reviewed with the suffix ‘Issuer not cooperating’. That’s because these ratings lack a forward looking perspective as they are arrived at without any management interaction, and are based on best available, or limited, or dated, information about the company.
Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the ratings on bank facilities of JAOL to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' from ‘CRISIL BBB+/Stable/CRISIL A2’ |
Analytical Approach For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of JAOL, its subsidiaries, Ihsedu Agrochem Private Limited (IAPL) and Ihsedu Coreagri Services Pvt Ltd (ICSPL); joint venture (JV) Ihsedu Itoh Green Chemicals Marketing Pvt Ltd (IIGCMPL); and JAOL's share in Vithal Castor Polyols Pvt Ltd (VCPPL). That's because, all these entities, collectively referred to as the Jayant group, have significant operational and financial linkages with each other. Moreover, JAOL has provided corporate guarantees for the bank facilities of IAPL. |
About the Group JAOL, set up in 1992, manufactures castor oil and castor-oil-based derivative products. Its promoters have been in the castor oil business since 1952, when they set up Jayant Oil Mills. Following the separation of the Kapadia and Udeshi promoter families in 2002, JAOL was separated from the Jayant Oil Mills group (which became a part of the Kapadia group). Since March 2002, the Udeshi family has taken exclusive control of JAOL. IAPL was set up as a backward integration initiative into seed crushing in fiscal 2002. In October 2013, Arkema acquired 24.9% stake in IAPL for about Rs 30 crore. Ihsedu Speciality Chemicals Pvt Ltd (ISCPL) was set up in 2006 as a JV of JAOL and Mitsui & Co Ltd, Japan. ISCPL manufactures sebacic acid, a castor oil-based derivative; it commenced regular commercial production in December 2011. In August 2011, JAOL bought all the shares of ISCPL, making the latter a wholly owned subsidiary. Subsequently, in October 2011, ISCPL was merged with JAOL.
ICSPL was set up to manufacture hybrid seeds. IIGCMPL was incorporated in fiscal 2011, with JAOL holding 90% equity stake, which got reduced to 60% in September 2011 post purchase by Itoh Oil Chemicals Co Ltd (IOCCL), Japan. IIGCMPL started commercial activity from April 2012. In fiscal 2014, JAOL entered into a 50:40:10 JV agreement with Mitsui Chemicals, Japan and IOCCL, Japan to invest in the equity shares of VCCPL. |
Key Financial Indicators (consolidated)
|
Any other information: Not applicable |
| Note on complexity levels of the rated instrument: CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments. |
Annexure - Details of Instrument(s)
*Issuer did not cooperate; based on best-available information |
Annexure – List of entities consolidated
|
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
* - Issuer did not cooperate; based on best-available information
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | |||||||||||||||||||||||||||||||||||||||||||||
|
Criteria Details
|