Rating Rationale
February 26, 2020 | Mumbai
Shukra Jewellery Limited
Issuer not cooperating, based on best-available information; Rating downgraded to 'CRISIL D Issuer not Cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.17.05 Crore
Long Term Rating CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING')* 
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 has been consistently following up with Shukra Jewellery Limited (SJL) for obtaining information through letters and emails dated December 31, 2019, and January 06, 2020, among others, apart from telephonic communication. However, the issuer has remained non-cooperative.
 
'Investors, lenders, and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as they are arrived at without any management interaction and are based on best available or limited or dated information on the entity'.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SJL, which restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes the information available is consistent with 'Scenario 1' outlined in the Framework for Assessing Consistency of Information with 'CRISIL BB' rating category or lower.
 
Due to delay by the company in servicing its term debt obligations, CRISIL has downgraded the rating on the long-term bank facility to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating'.

About the Firm

SJL, a BSE listed company is completely engaged in the development of affordable housing real estate from fiscal 2019 but was engaged in trading of gems and jewellery in the past till fiscal 2018. It is promoted and is currently being run by Mr. Chandrakant Shah.

Key Financial Indicators
Particulars Unit 2019 2018
Revenue Rs. Cr. 18.0  36.7
Profit After Tax Rs. Cr. 2.3  0.26
PAT Margin % 1.3 0.7
Adjusted Debt/Adjusted Net worth Times 0.3 0.2
Interest coverage Times (1.96) 4.7
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.Cr)
Rating Assigned  with Outlook
NA Term loan NA NA Apr-2020 17.05 CRISIL D/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  17.05  CRISIL D (Issuer Not Cooperating)*  30-01-20  CRISIL BB-/Stable (Issuer Not Cooperating)*      03-10-18  CRISIL BB-/Stable    --  -- 
All amounts are in Rs.Cr.
*Issuer did not cooperate; based on best-available information
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Term Loan 17.05 CRISIL D/Issuer Not Cooperating  Term Loan 17.05 CRISIL BB-/Stable/Issuer Not Cooperating
Total 17.05 -- Total 17.05 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
Rating criteria for manufaturing and service sector companies
CRISILs Approach to Recognising Default
CRISILs Criteria for rating short term debt
Mapping global scale ratings onto CRISIL scale

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