Rating Rationale
January 31, 2018 | Mumbai
Sovereign Diamonds Limited
Ratings Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.19 Crore
Long Term Rating CRISIL BB-/Stable (Withdrawal)
Short Term Rating CRISIL A4+ (Withdrawal)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has withdrawn its rating on the bank facilities of Sovereign Diamonds Limited (SDL) on the request of the company and receipt of a no-dues certificate from its banker. The rating action is in line with CRISIL's policy on withdrawal of its bank loan ratings.

About the Company

SDL, listed on the Bombay Stock Exchange, was set up in 1974 by members of the Mumbai based Gehani family. It manufactures 18-carat diamond jewellery. SDL's manufacturing facilities are located in Mumbai. Mr. Ajay Gehani is the managing director.

Key Financial Indicators
Particulars Unit 2017 2016
Revenue Rs. Cr. 45.2 53.17
Profit After Tax Rs. Cr. 1.05 1.21
PAT margin % 2.3 2.3
Adjusted Debt/Adjusted Net worth Times 1.3 1.5
Interest coverage Times 2.2 2.48

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. Cr)
Rating Assigned
with Outlook
NA Cash Credit NA NA NA 15.5 Withdrawal
NA Proposed Long Term Bank Loan Facility NA NA NA 2.8 Withdrawal
NA Proposed Short Term Bank Loan Facility NA NA NA 0.5 Withdrawal
NA Term Loan NA NA Mar-2021 0.2 Withdrawal
Annexure - Rating History for last 3 Years
  Current 2018 (History) 2017  2016  2015  Start of 2015
Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  19  Withdrawal    No Rating Change    No Rating Change  18-07-16  CRISIL BB-/Stable/ CRISIL A4+    No Rating Change  CRISIL BB-/Negative/ CRISIL A4+ 
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Cash Credit 15.5 Withdrawal Cash Credit 15.5 CRISIL BB-/Stable
Proposed Long Term Bank Loan Facility 2.8 Withdrawal Proposed Long Term Bank Loan Facility 2.8 CRISIL BB-/Stable
Proposed Short Term Bank Loan Facility .5 Withdrawal Proposed Short Term Bank Loan Facility .5 CRISIL A4+
Term Loan .2 Withdrawal Term Loan .2 CRISIL BB-/Stable
Total 19 -- Total 19 --
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 Bank Loan Ratings
The Rating Process

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