RATING RATIONALE
13Feb2023

Twinstar Industries Ltd.

Brickwork Ratings reaffirms the 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
(23 Feb 2022)
Present
Fund Based 11.00 11.00 Long Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 10.00 10.00 Short Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
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 ratings to BWR D for the Bank Loan Facilities of Rs. 21.00 Crores based on the independent auditor's declaration in the FY21 annual report that the lender has declared the credit facility of the entity as NPA. Brickwork Ratings has therefore continued the rating under the “Issuer Not Cooperating” category.

The rating was due for the Q3 review as the quarterly results were declared. BWR took up with the issuer to provide the required information over emails and telephone calls. The client did not fulfill the review of rating formalities to date or respond to any of the emails sent by BWR. Whenever we called the client, they did not respond. Further, BWR also took up with the bank to provide the required information over emails and telephone calls but did not receive any response.

Hence, on account of inadequate information and lack of management cooperation, the declaration from the independent auditor that the credit facility of the entity has been declared NPA by the bank Brickwork Ratings has reaffirmed the long-term rating to BWR D and short-term rating to BWR A4; Issuer Not Cooperating of the Bank Loan Facilities of the company.

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

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 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 providing 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.

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

NA

ANY OTHER INFORMATION

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 11.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
23Feb2022
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
10May2021
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*)
13Mar2020
BWR BStable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 10.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
23Feb2022
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
10May2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
13Mar2020
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 21.00 (Rupees Twenty One Crores 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

Himanshu Seth

Rating Analyst himanshu.s@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Twinstar Industries 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 State Bank Of India (SBI) Cash CreditSanctioned 11.00 _ 11.00
2 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 10.00 10.00
Total 11.00 10.00 21.00
TOTAL (Rupees Twenty One Crores Only)
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About Brickwork Ratings

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