RATING RATIONALE
10May2021

Twinstar Industries Ltd.

Brickwork Ratings downgrades the long-term ratings and reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 21.00 Crs. of Twinstar Industries Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(13 Mar 2020)
Present
Fund Based 11.00 11.00 Long Term BWR B (Stable)
Downgrade/Issuer Not Cooperating
BWR B - /Stable
Downgrade/IssuerNonCooperation
Non Fund Based 10.00 10.00 Short Term BWR A4
Reaffirmed/Issuer Not Cooperating
BWR A4
Reaffirmation/IssuerNonCooperation
Grand Total 21.00 21.00 (Rupees Twenty One Crores 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 downgrades the long term rating to BWR B-(Stable) and reaffirms short-term rating to BWR A4; Issuer not Cooperating for the Bank Loan Facilities of Twinstar Industries LTD amounting to ? 21.00 Crores, based on the best available information as the firm has not provided any information/papers. 

Brickwork Ratings had initially rated Twinstar Industries bank loan facilities amounting to Rs. 7.44 Crores in December 2013. The rating assigned was BWR B+ (Stable)/BWR A4. In September 2015, the firm rating was upgraded to BWR BB- (Stable)/A4. In August 2016 the rating was again upgraded to BWR BB (Stable)/A4. In January 2018 the outstanding rating was reaffirmed to BWR BB (Stable)/A4. In April 2019 the rating was moved to Not Reviewed Advisory. Subsequently, on account of the required information not being provided, the firm was moved to Issuer not Cooperating in March 2020 and the long-term rating downgraded, and the short-term rating was reaffirmed to BWR B (Stable)/A4.

BWR took up with the firm to provide the required information for conducting a review of the ratings through emails dated 19th April 2021, 3 rd May 2021, and 4th May 2021. Telephonic conversation on 20th April 2021,  for the same, could not take place as the client number was wrong. Despite the best efforts of BWR to get at least the minimum required information for a review, the firm has not provided the same. BWR reached out to the banker dated 20th April 2021, 3rd May 2021, and 4th May 2021. However, no response was obtained. In the absence of adequate information from the Firm, BWR is unable to assess the Firm’s financial performance and its ability to service its debt and maintain a valid rating. Hence, on account of inadequate information and lack of management co-operation, Brickwork Ratings has downgraded the long-term rating and reaffirmed the short-term rating to BWR B-(Stable)/A4 ISSUER NOT COOPERATING.  

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 the required information for a review of the assigned rating may also be accompanied by financial stress. 

ABOUT THE ENTITY

Twinstar Industries Limited (TIL) was incorporated in the year 1994. TIL is a limited company listed on the Bombay Stock Exchange. The objectives of the company include the development and export of software and provide IT-enabled services and trading of Steel, Cotton, Cotton Coated Fabrics & Chemicals items. It has more than 500 stations in Maharashtra, Gujarat, Madhya Pradesh states operating for UAID to capture data for Aadhar cards. The company is planning to expand its station size twice.

The company’s current ratio is  1 time in FY20 which has decreased from 1.28 times in FY19 as available from the public domain. The company’s debt to equity ratio of 0.84  times in FY20 has increased from 0.63  times in FY19 as available from the public domain. The company's interest coverage ratio has also decreased to -0.27 in FY 20 from 1.33 in FY 19. The company has earned a total revenue & PAT  in tune of Rs 14.87cr & Rs -1.15cr in FY20 which has decreased from Rs 85.31 cr & Rs 0.47cr  in FY19 as available from the public domain.  

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.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 11.00
BWR B-/Stable
(Downgrade/IssuerNonCooperation)
NA
NA
13Mar2020
BWR B (Stable)
(Downgrade/Issuer Not Cooperating )
NA
NA
05Jan2018
BWR BB (Stable)
(Reaffirmed )
Non Fund Based ST 10.00
BWR A4
(Reaffirmation/IssuerNonCooperation)
NA
NA
13Mar2020
BWR A4
(Reaffirmed/Issuer Not Cooperating )
NA
NA
05Jan2018
BWR A4
(Reaffirmed )
Grand Total 21.00 (Rupees Twenty One Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Mrigank Tripathi

Ratings Analyst mrigank.t@brickworkratings.com

Sushil Kumar Chitkara

Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Twinstar Industries Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Cash CreditSanctioned 11.00 _ 11.00
2 Bank GuaranteeSanctioned _ 10.00 10.00
Total 11.00 10.00 21.00
TOTAL (Rupees Twenty One Crores Only)
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