RATING RATIONALE
12Jul2022

Tinna Trade Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 66.76 Crs. of Tinna Trade Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Aug 2021)
Present
Fund Based 39.60 36.76 Long Term BWR BB /Stable
Upgrade
BWR BB /Stable
Reaffirmation
Non Fund Based 20.00 30.00 Short Term BWR A4
Reaffirmation
BWR A4
Reaffirmation
(5.00) (5.00)
Grand Total 59.60 66.76 (Rupees Sixty Six Crores and Seventy Six 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


RATING ACTION / OUTLOOK

Brickwork ratings has reaffirmed the long term and short term rating at BWR BB (Stable)/ BWR A4 for the bank facilities of Tinna Trade Limited. The rating draws comfort from extensive experience of promoters in the same line of business, well established relationships with buyers & suppliers, improved overall financial risk profile of the company and promising operational performance on account change in the business strategy to focus more on non agri-trading activities also which provides visibility of the revenue in the short to medium term. 

However, the rating is constrained by exposure to volatility in the prices of agro based commodities and fluctuations in foreign currency and thin profitability margins owing to the nature of the business. The ratings also factor in the weak credit ratios led by low levels of EBITDA.

Outlook: Stable 

BWR believes that the business and financial risk profile of the company will be maintained over the medium term. The outlook may be revised to 'Positive' in case revenue, profitability and solvency position show a sustained improvement leading to an improved financial and liquidity profile. The rating outlook may be revised to 'Negative' in case the profitability generated is much lower than anticipated, there are aggressive debt-funded capex plans, or there is a significant deterioration in the overall liquidity profile of the company.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as debited in the Rating Criteria detailed 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 substantial decline in revenues, profitability and detoriation in the overall liquidity profile of the company. 

LIQUIDITY INDICATORS - Stretched

Fund based working capital utilization of the company remained high with 95% utilization during the last twelve months period. The company cash accruals of Rs. 0.55 crs in FY22, which is expected to be improved to Rs. 4.35 crs in FY23. Moderate current ratio and gearing ratio at 1.34x and 1.22x for FY 22. Debt service coverage ratio i.e. ISCR and DSCR improved from -0.21x and 0.64x in FY21 to 0.42x and 1.18x in FY22, respectively. The company is able to meet its interest expenses from its non operating income which is Rs. 2.72 crs for FY22, despite having such a low ISCR.

ABOUT THE ENTITY

Tinna 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 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 334.58 240.76
EBITDA Rs.Crs. 1.59 -0.73
PAT Rs.Crs. 0.58 -2.82
Tangible Net Worth Rs.Crs. 27.31 26.71
Total Debt/TNW Times 1.22 0.97
Current Ratio Times 1.34 1.53

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 36.76
BWR BB/Stable
(Reaffirmation)
31Aug2021
BWR BB Stable
(Upgrade)
30Jul2020
BWR BB- Stable
(Assignment)
NA
NA
Non Fund Based ST 30.00
BWR A4
(Reaffirmation)
31Aug2021
BWR A4
(Reaffirmation)
30Jul2020
BWR A4
(Assignment)
NA
NA
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)
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

Aanchal Gupta

Ratings Analyst aanchal.g@brickworkratings.com

Tanu Sharma

Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Tinna Trade 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 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 Ratings

Brickwork 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 11,541 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. 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.

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