Golkunda Diamonds & Jewellery Ltd Receives Credit Rating for Bank Facilities
Golkunda Diamonds & Jewellery Ltd secured updated credit ratings for its bank facilities from Infomerics Valuation and Rating Ltd. The rating action was based on the company's operational and financial performance for FY25 and 9MFY26.The ratings provided cover both long term and short term bank facilities, detailing the financial strength assessment across key credit instruments.
A summary of the rating action is presented below:
| Facilities | Amount (Rs. crore) | Current Ratings | Previous Ratings | Rating Action |
|---|---|---|---|---|
| Long term Bank Facilities | 47.00 (enhanced from 35.00) | IVR BBB-/RWNI (IVR Triple B Minus on Rating Watch with Negative Implications) | IVR BBB-/ Stable (IVR triple B minus with a stable outlook) | Rating Reaffirmed and placed on watch with Negative Implications |
| Short term Bank Facilities | 2.00 (enhanced from 0.50) | IVR A3/RWNI (IVR A Three on Rating Watch with Negative Implications) | IVR A3 (IVR A three) | Rating Reaffirmed and placed on watch with Negative Implications |
| Total | 49.00 (INR Forty-Nine Crore only) |
The total bank facilities rated amount stands at Rs. 49.00 crore.
Details of Rated Facilities
The specific components of the rated facilities were detailed as follows:Long Term Fund Based Facilities (Rs. Crore)
The long term facilities totaling Rs. 47.00 crore included:
- State Bank of India: Export Packing Credit Limit / Packing Credit in Foreign currency amounting to '15.00.
- State Bank of India: Post Shipment Credit Limit / Export Bill Rediscounting Limit amounting to 20.00.
- State Bank of India: Export credit guarantee scheme (ECGS) amounting to 7.00, with a maturity of Nov 2029.
Short Term Non Fund Based Facilities: Working Capital
The short term facilities totaled Rs. 2.00 crore:
* State Bank of India: Derivative Forward contract / Credit exposure limit amounting to 2.00.
Rating Scale Overview
The provided rating analysis also outlined the rating scales used for evaluation.For Long Term Ratings, the following scale was referenced:
| Rating | Safety Level Assessment |
|---|---|
| AAA | Securities with this rating are considered to have the highest degree of safety regarding servicing of financial obligations. Such securities carry low credit risk. |
| AA | Securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk. |
| A | Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk. |
| BBB | Securities with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such securities carry moderate credit risk. |
| BB | Securities with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations. |
| B | Securities with this rating are considered to have high risk of default regarding timely servicing of financial obligations. |
| C | Securities with this rating are considered to have very high risk of default regarding timely servicing of financial obligations. |
For Short Term Ratings, the rating scale included:
| Symbol | Safety Level Assessment |
|---|---|
| IVR 41 | Securities with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such securities carry lowest credit risk. |
| IVR A2 | Securities with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such securities carry low credit risk. |
| IVR A3 | Securities with this rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such securities carry higher credit risk as compared to instruments rated in the two higher categories. |
| IVR A4 | Securities with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such securities carry very high credit risk and are susceptible to default. |
| IVR D | Securities with this rating are in default or expected to be in default on maturity. |
Stock Price Movement
Golkunda Diamonds & Jewellery Ltd settled at ₹267.10 on Friday, ticking up 2.69% in after-hours action. The shares navigated a noticeable swing throughout the day, ranging between a low of ₹260.10 and a high of ₹269.80.Source:
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