Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 50.00 ACUITE BB+ | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 50.00 - -
 
Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.50.00 Crore bank facilities of Telangana State Trade Promotion Corporation Limited (TSTPCL or corporation) The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.


About the Company

­Incorporated in 2014, Telangana State Trade Promotion Corporation Limited (TSTPCL) was promoted by the Government of Telangana (GoT). TSTPCL was established with an objective of promoting trade promotion activities by facilitating and organising national and international trade fairs, conducting and participating in National and international trade exhibitions, seminars, providing export guidance, publishing TS Trade Journals among others. Additionally, TSTPCL provides Trade Promotional Infrastructure like Container Freight Stations, Container Depots, Trade Warehousing Zones, Logistic Hubs, Truck Parking Terminals, Customs clearance, stuffing and de-stuffing of containers, Exhibition, Convention Centers among others. TSTPCL is engaged in manufacture and sale of “Golkonda” brand note books and Plain Copier Paper to Welfare Departments of the Government of Telangana.

 
Non-cooperation by the issuer/borrower:

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.

Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.

This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

 
Limitation regarding information availability:

­The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité endeavored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative rating is based.

 
Rating Sensitivity

­No information provided by the issuer / available for Acuite to comment upon.

 
Material Covenants

­Not Applicable

 
Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.

 
Outlook

­Not Appliacble

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 20 (Provisional) FY 19 (Actual)
Operating Income Rs. Cr. 33.65 39.65
PAT Rs. Cr. 3.04 2.48
PAT Margin (%) 9.03 6.25
Total Debt/Tangible Net Worth Times 0.00 0.00
PBDIT/Interest Times 2913.89 187.33
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.htm

Note on Complexity Levels of the Rated Instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
14 Apr 2022 Proposed Term Loan Long Term 10.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Proposed Secured Overdraft Long Term 40.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
15 Feb 2021 Proposed Secured Overdraft Long Term 40.00 ACUITE BBB | Stable (Assigned)
Proposed Term Loan Long Term 10.00 ACUITE BBB | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Not Applicable Not Applicable Proposed Secured Overdraft Not Applicable Not Applicable Not Applicable 40.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Term Loan Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*

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