Rating Rationale
December 13, 2018 | Mumbai
Jindal Hotels Limited
Ratings Reaffirmed and Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.50 Crore
Long Term Rating CRISIL BBB-/Stable (Reaffirmed and Withdrawn)
Short Term Rating CRISIL A3 (Reaffirmed and Withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has reaffirmed and subsequently withdrawn its ratings on the bank facilities of Jindal Hotels Limited (JHL) at the company's request and on receipt of a no-objection certificate from its banker. The withdrawal is in line with CRISIL's policy on withdrawal of bank loan ratings.

About the Company

Incorporated in 1984, JHL operates a 143-room four-star hotel, Grand Mercure Surya Palace, in Vadodara, which mainly caters to corporate clients. The company has tied up with the Accor group for managing the hotel, and the new management took over operations from June 2017. JHL is listed on Bombay Stock Exchange.

Key Financial Indicators
As on / for the period ended March 31   2018 2017
Revenue Rs crore 34 34.8
Profit after tax Rs crore 0.9 0.2
PAT margins % 2.7 0.7
Adjusted Debt/Adjusted Net worth Times 2.33 1.96
Interest coverage Times 2.42 2.20

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL 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)
ISIN Name of instrument Date of allotment Coupon rate (%) Maturity date Issue size
(Rs crore)
Rating assigned
with outlook
NA Bank Guarantee NA NA NA 0.3 Withdrawn
NA Cash Credit/ Overdraft facility NA NA NA 8 Withdrawn
NA Term Loan NA NA 30-Jun-27 41.7 Withdrawn
Annexure - Rating History for last 3 Years
  Current 2018 (History) 2017  2016  2015  Start of 2015
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  49.70  Withdrawn  10-01-18  CRISIL BBB-/Stable  30-01-17  CRISIL BBB-/Stable      08-12-15  CRISIL BBB-/Stable  CRISIL BBB-/Stable 
Non Fund-based Bank Facilities  LT/ST  0.30  Withdrawn  10-01-18  CRISIL A3  30-01-17  CRISIL A3      08-12-15  CRISIL A3  CRISIL A3 
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee .3 Withdrawn Bank Guarantee .3 CRISIL A3
Cash Credit/ Overdraft facility 8 Withdrawn Cash Credit/ Overdraft facility 8 CRISIL BBB-/Stable
Term Loan 41.7 Withdrawn Term Loan 41.7 CRISIL BBB-/Stable
Total 50 -- Total 50 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
CRISILs Criteria for rating short term debt

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