Brickwork Ratings downgrades the long-term ratings and reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 66.76 Crs. of Tinna Trade Ltd.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (12 Jul 2022) |
Present | ||
Fund Based | 36.76 | 36.76 | Long Term |
BWR BB /Stable
Reaffirmation |
BWR BB -
/Stable Downgrade |
Non Fund Based | 30.00 | 30.00 | Short Term |
BWR A4
Reaffirmation |
BWR A4
Reaffirmation |
(5.00) | (5.00) | ||||
Grand Total | 66.76 | 66.76 | (Rupees Sixty Six Crores and Seventy Six lakhs Only) |
Brickwork Ratings (BWR) has downgraded long term the rating assigned to the bank facilities of Tinna Trade Ltd. (or 'the company') to BWR BB-/ Stable and reaffirmed the short-term rating at BWR A4 based on the available information. Being a listed entity, the company has published its Audited FY23 Financials on the stock exchange. The downgrade in the ratings is on account of decline in revenues, profitability, coverage indicators and deterioration in the overall liquidity profile of the company in FY23 as compared to FY22.
KEY RATING DRIVERSANALYTICAL APPROACH - Standalone
BWR has factored in the standalone business parameters and financial risk profile of the company to arrive at the rating. Reference may be made to the detailed Rating Criteria hyperlinked below (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive: BWR may revise the ratings upward in the case there is substantial improvement in revenue, profitability and overall financial risk profile.
Negative: BWR may revise the rating downward in the case there is a substantial decline in revenues, profitability and deterioration in the overall liquidity profile of the company.
LIQUIDITY INDICATORS - Poor
The company cash accruals of Rs. -2.62 Crs in FY23. The current ratio and gearing ratio is adequate at 1.56x and 0.95x for FY23. The debt service coverage ratio i.e. ISCR and DSCR is at 0.30x and 0.46x respectively.
ABOUT THE ENTITYTinna trade Ltd. (TTL) was set up in 2009 and is a part of the well diversified TINNA GROUP of Companies established four decades ago. Tinna Trade Ltd. (TTL) is a company listed on Bombay Stock Exchange. TTL is engaged in the business of trading of commodities like
TTL has presence at all the major Gateway Ports of India which cater to handling of commodities and working through its 12 branch offices. The company has its own team at each location for effective execution, distribution & collection. The company does not have any subsidiary companies.
KEY FINANCIAL INDICATORS (Standalone)Key Parameters | Units |
FY 22-23 (Audited) |
FY 21-22 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 294.12 | 334.58 |
EBITDA | Rs.Crs. | 1.47 | 1.59 |
PAT | Rs.Crs. | -2.64 | 0.58 |
Tangible Net Worth | Rs.Crs. | 29.01 | 27.31 |
Total Debt/TNW | Times | 0.95 | 1.22 |
Current Ratio | Times | 1.56 | 1.34 |
NA
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 36.76 |
BWR BB-/Stable
(Downgrade) |
12Jul2022 |
BWR BB Stable
(Reaffirmation) |
31Aug2021 |
BWR BB Stable
(Upgrade) |
30Jul2020 |
BWR BB- Stable
(Assignment) |
Non Fund Based | ST | 30.00 |
BWR A4
(Reaffirmation) |
12Jul2022 |
BWR A4
(Reaffirmation) |
31Aug2021 |
BWR A4
(Reaffirmation) |
30Jul2020 |
BWR A4
(Assignment) |
NFB SubLimit | ST | (5.00) |
BWR A4
(Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
Grand Total | 66.76 | (Rupees Sixty Six Crores and Seventy Six lakhs Only) |
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 CriteriaAnalytical Contacts | |
---|---|
Pallav Kumar Goel Rating Analyst pallavkumar.g@brickworkratings.com |
Ravi Rashmi Dhar Associate Director - Ratings ravi.d@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
---|---|---|---|---|---|---|
1 | Canara Bank | GECLSanctioned | 0.99 | _ | 0.99 | |
2 | Canara Bank | GECLSanctioned | 0.57 | _ | 0.57 | |
3 | Canara Bank | ILC/FLCSanctioned | _ | 20.00 | 20.00 | |
Sub-Limit (Bank Guarantee) Sanctioned | (5.00) | |||||
4 | Canara Bank | Cash CreditSanctioned | 10.00 | _ | 10.00 | |
5 | State Bank Of India (SBI) | GECLSanctioned | 5.60 | _ | 5.60 | |
6 | State Bank Of India (SBI) | Cash CreditSanctioned | 19.60 | _ | 19.60 | |
7 | State Bank Of India (SBI) | ILC/FLCSanctioned | _ | 10.00 | 10.00 | |
Total | 36.76 | 30.00 | 66.76 | |||
TOTAL (Rupees Sixty Six Crores and Seventy Six lakhs Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
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