RATING RATIONALE
12Jun2024

Texmo Pipes & Products Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 122.20 Crs. of Texmo Pipes & Products Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(08 Jun 2023)
Present
Fund Based 66.20 66.20 Long Term BWR BB+ /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR BB /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 56.00 56.00 Short Term BWR A4+
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 122.20 122.20 (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings (BWR) has consistently taken up with Texmo Pipes & Products Ltd. (TPPL or the comapny) through emails and telephone calls to provide the requisite information for the periodic rating surveillance. Despite the best efforts of BWR to get at least the minimum required information for a review, the company continues to remain non-cooperative. Further, the company is not submitting the monthly No Default Statement (NDS) in deviation from the extant guidelines. Due to the continued lack of management cooperation and the absence of adequate information from the firm, BWR is unable to assess the company's operational and financial performance, its ability to service its debt, and maintain a valid rating. Hence, based on the best available information, continued lack of management cooperation, non-submission of monthly NDS and in terms of extant regulatory requirements, BWR has reaffirmed the ratings to BWR BB+/Stable/A4+ and continued it in the ISSUER NOT COOPERATING* category.

The lenders/investors may note to exercise due caution while using the above rating which mentions "ISSUER NOT COOPERATING" since the rating lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/banker's interaction.

*Issuer did not cooperate; based on best available information

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ANALYTICAL APPROACH - Consolidated

BWR has relied upon the consolidated financials of Texmo Pipes & Products Ltd. and publicly available information to arrive at its ratings. BWR has applied its rating methodology as detailed in the Rating Criteria as per the hyperlinks.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Industrials Capital Goods Industrial Products Plastic Products - Industrial

Texmo Pipes & Products Limited (TPPL) is a public limited company, incorporated on 3rd July 2008. TPPL is engaged in manufacturing of PVC Pipes, UPVC Casing Pipes, Plumbing Pipes, SWR Pipes, HDPE Pipes, Permanently Lubricated Pipes and HDPE Sprinkler Pipes, Moulded Fittings, etc. Manufacturing facility of TPPL is located in Burhanpur, Madhya Pradesh. Mrs. Rashmi Agrawal is the Chairperson and Mr. Sanjay Kumar Agrawal the Managing Director of the company. The equity shares of TPPL are listed on NSE & BSE.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

There is no non-cooperation with the other CRAs.

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 66.20
BWR BB/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
23Feb2023
BWR BBB Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
24Nov2021
BWR BBB+ Stable
(Upgrade)
0.00
NA
08Jun2023
BWR BB+ Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
NA
NA
Non Fund Based ST 56.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
23Feb2023
BWR A3+
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
24Nov2021
BWR A2
(Upgrade)
0.00
NA
08Jun2023
BWR A4+
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
NA
NA
Grand Total 122.20 (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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 info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Swarn Saurabh

Assistant Manager - Ratings swarn.s@brickworkratings.com

Niraj Kumar Rathi

Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Texmo Pipes & Products Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Bank of Baroda Cash CreditSanctioned 7.00 _ 7.00
2 Bank of Baroda Bank GuaranteeSanctioned _ 7.00 7.00
3 Bank of Baroda Letter of CreditSanctioned _ 10.00 10.00
4 Central Bank of India Letter of CreditSanctioned _ 9.00 9.00
5 Central Bank of India Bank GuaranteeSanctioned _ 5.00 5.00
6 Central Bank of India Cash CreditSanctioned 6.00 _ 6.00
7 Central Bank of India Term LoanSanctioned 1.20 _ 1.20
8 HDFC Bank Term LoanSanctioned 1.10 _ 1.10
9 Punjab National Bank Term LoanSanctioned 18.00 _ 18.00
10 Punjab National Bank Cash CreditSanctioned 7.00 _ 7.00
11 Punjab National Bank Bank GuaranteeSanctioned _ 5.00 5.00
12 Punjab National Bank Letter of CreditSanctioned _ 5.00 5.00
13 Punjab National Bank Term LoanSanctioned 3.50 _ 3.50
14 State Bank Of India (SBI) Common Covid Emergency Line of Credit (CCECL)Sanctioned 2.40 _ 2.40
15 State Bank Of India (SBI) Letter of CreditSanctioned _ 10.00 10.00
16 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 5.00 5.00
17 State Bank Of India (SBI) Cash CreditSanctioned 20.00 _ 20.00
Total 66.20 56.00 122.20
TOTAL (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
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