Jagmohan Lal Gupta Estates Pvt Ltd. 11Jun2019 Brickwork Ratings Has Reviewed the Rating for the Bank Loan Facilities of 29.63 Crore of ₹ Jagmohan Lal Gupta Pvt
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Rating Rationale Jagmohan Lal Gupta Estates Pvt Ltd. 11Jun2019 Brickwork Ratings has reviewed the Rating for the Bank Loan facilities of 29.63 Crore of ₹ Jagmohan Lal Gupta Pvt. Ltd. (The Company) based on best available information, as the issuer did not cooperate. Accordingly the rating for the said instrument is as under Particulars Amount (₹ Cr) Rating* Facility Tenure Previous Previous Present Present (Dec, 2017) Fund based 1.00 1.00 Long Term Issuer did not Cash Credit BWR BB- Co-operate; Term Loan 27.92 27.92 (BWR Double B BWR B+ Minus) (BWR B Plus) Non Fund Based (Outlook: Stable) (Outlook:Stable) Bank Guarantee 0.71 0.71 Short Term (Downgraded) Total 29.63 29.63 (₹Twenty Nine Crores and Sixty Three Lakhs Only) *Please refer to BWR website www.brickworkratings.com/ for definition of the ratings Issuer did not co-operate; based on best available information Ratings: Downgraded and classified as “Issuer did not Cooperate” Nature of Non-co-operation: The rating due for review in December 2018 was taken with the issuer to provide required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. The Company has not shared the latest financials and other relevant information/documents required for review. The lender has informed of account conduct as standard and satisfactory however the latest financials of the Company and other requisite information for review is not made available to BWR by the Company. In the absence of requisite information from the Company, BWR is unable to assess the company’s financial performance and its ability to service its debt / interest obligation and maintain a valid rating. Hence the Rating is placed under Issuer Not did not Cooperate with downgrade for Bank Loan facilities amounting to Rs.29.63 Cr of Jagmohan Lal Gupta Estates Pvt. Ltd. 1 11Jun2019 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. About the Company (Information shared at the last review of Dec,2017) Jagmohan Lal Gupta Estates Pvt. Ltd., based out of Ranchi, was incorporated as a real estate development Company in 1981. The Company has set up a 5 Star hotel named ‘Radisson Blu’, in collaboration with Radisson International. The hotel has 115 rooms, comprising of 72 superior rooms, 34 business class rooms and 9 suites. The hotel has 3 restaurants, 1 ballroom, 2 lounges, spa etc. The commercial operations of the Hotel started on 11th May 2011. Mr. Dilip Kumar Gupta, Mrs. Nandini Gupta and Mr. Aditya Gupta are the promoter Directors of the company. For further details please refer to our rating rationale dated March 17, 2017 or click the link:https://www.brickworkratings.com/Admin/PressRelease/Jagmohan-Lal-Gupta-Estates-BL_2 9.63Cr-Revision-Rationale-1Dec2017%20(1).pdf Rating History for the last three years (including withdrawn/suspended ratings) S.No Facility Current Rating (2019) Rating History Type Amount Rating^ 04,Mar, 2019 01,Dec., 2017 19,Sep, 2016 (₹ Cr) Long Issuer did not 1. Fund Based 28.92 Ratings Not BWR B+ Term Co-operate; BWR BB- Reviewed (BWR Single BWR B+ (BWR Double B BWR BB- B Plus) (BWR Single B Minus) (BWR Double B (Outlook: Plus) (Outlook: Stable) Short Minus) Stable) 2. Non Fund Based 0.71 (Outlook:Stable) (Upgraded) Term (Outlook:Stable) (Assigned) (Downgraded) Total 29.63 (₹Twenty Nine Crores and Sixty Three Only) ^Issuer did not co-operate; based on best available information Status of non-cooperation with previous CRA (if applicable)- NA Any other information- Rating suspended by SMERA in October 2016. Hyperlink/Reference to applicable Criteria ● General Criteria ● Approach to Financial Ratios ● What Constitutes Non-Cooperation 2 11Jun2019 For any other criteria obtain hyperlinks from website Jagmohan Lal Gupta Estates Pvt Ltd. Annexure I Particulars Units 2016 2017 Result Type Aud. Aud. Net Sales/Revenues ₹ Cr 23.12 26.31 EBIDTA ₹ Cr 7.60 8.92 PAT ₹ Cr 0.96 2.81 Tangible Networth ₹ Cr (8.00) (8.18)* Total Debt : TNW Times (5.35) (4.83) Current Ratio Times 0.64 0.54 Note: As per last information available with BWR **An amount of Rs.2.99 Crs of share application money stated in FY16 is refunded in FY17 due to its non-allotment and shown under current liabilities Hemant S Senior Manager - Ratings B :+91 80 4040 9940 Satish Nair [email protected] Director - Global Market Development & Investor Relations M : +91 7738875550 Madhu Sonthalia S B : +91 80 6745 6666 Ratings Analyst [email protected] D : +91 90739 18942 B :+91 80 4040 9940 [email protected] 1-860-425-2742 For print and digital media The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media. Note on complexity levels of the rated instrument: 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 [email protected]. 3 11Jun2019 About Brickwork Ratings Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency, accredited by RBI and empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services. NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited by IREDA & the Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork Ratings has Canara Bank, a leading public sector bank, as its promoter 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. DISCLAIMER Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons. 4 11Jun2019 .