Press Release

Press Release

April 02, 2024

TOYOP RELIEF PRIVATE LIMITED
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	7.56	ACUITE BB- \| Reaffirmed & Withdrawn	-
Bank Loan Ratings	12.00	-	ACUITE A4+ \| Reaffirmed & Withdrawn
Bank Loan Ratings	37.44	-	Not Applicable \| Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	57.00	-	-

Rating Rationale

Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE BB-’ (read as ACUITE Double B minus) and short-term rating of 'ACUITE A4+' (read as ACUITE A Four Plus) on the Rs 19.56 crore bank facilities of Toyop Relief Private Limited (TRPL). Further, Acuité has withdrawn the proposed short-term facilites without assigning any rating on Rs 37.44 crore of Toyop Relief Private Limited (TRPL).The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and the NOC (No Objection Certificate) received from the banker

Rationale for Rating Reaffirmation

The rating reaffirmation reflects steady operating performance of TRPL marked by stable revenue growth and range bound operating margins. The revenue stood at Rs.56.52 Cr. in FY2023 against Rs.45.32 Cr. in FY2022. Further, TRPL reported revenue of Rs.65.00 Cr. as of March 2024. The rating also factors in comfort derived by long track record of operations with an experienced management spanning over more than two decades with reputed customer base. Further, the rating is constrained by TRPL’s average financial risk profile and intensive nature of working capital operations.

About the Company

Maharashtra Based - TRPL was incorporated in 1997 as a proprietorship concern reconstituted as a partnership firm and later as a private limited company in 2007. TRPL was promoted by Mr. Sachin Shah and his wife Mrs. Toral Shah. TRPL is engaged in the business of supplying relief materials to various organizations that cater to needy nations in times of calamities and disasters. TRPL is also an authorized dealer of plastic granules for Lyondell Basell Group in India. TRPL has also invested in 1.5 MW wind power generation in Rajasthan.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Toyop Relief Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Long Track Record of Operations with an Experienced Management
TRPL was established in 1997 as a proprietorship concern and reconstituted as a private limited company in 2007. The company is promoted by Mr. Sachin Shah who has been in this business since the past two decades.
Acuite believes company's long track record of operations along with promoter's extensive experience will help the company in maintaining long term relations with its customers and suppliers.

Reputed Customer Base
TRPL is engaged in the business of supplying relief materials to various non-governmental organizations including UNICEF, IOM, UNHCR, IFRC to name a few that cater to needy nations in times of calamities and disasters. Further TRPL is the authorized distributor of Lyondell Basell Group a public multinational chemical company listed on the NYSE stock-exchange.

Weaknesses

Average Financial risk profile
The financial risk profile of the company stood marked by low net worth, moderate gearing and debt-protection metrics. The net worth of the company stood at Rs. 6.47 Cr. as on 31 March 2023 as against Rs. 4.51 Cr. as on 31 March 2022. The gearing (debt-equity) of the company stood at 3.15 times as on 31 March 2023 as against 4.70 times as on 31 March 2022. Total debt of the company stood at Rs. 20.36 Cr. as on 31 March, 2023 which comprises of short term debt of Rs. 11.46 Cr, long term debt of Rs.1.09 Cr. and Unsecured loans form promotors and related parties at Rs.6.80 Cr. Interest coverage ratio stood at 2.35 times for FY2023 as against 2.10 times for FY2022. Further, debt service coverage ratio stood at 1.59 times in FY2023 as against 1.41 times in FY2022. TOL/TNW stood at 4.16 times for FY2023 and Debt-EBITDA stood at 3.57 times for FY2023. However, NCA/TD stood at 0.13 times for FY2023 as against 0.07 times in previous year. No major debt-funded capex is planned by the company.

Working capital intensive operations
The working capital operations are intensive with GCA days of 166 days for FY2023 as against 175 days for FY2022. The high GCA days are led by inventory days of 113 days in FY2023 against 89 days in FY2022. The increase in inventory is due to increase in value of inventory and some increase in volumes. The debtor days stood at 49 days in FY2023 against 51 days in FY2022. The current ratio stood moderate at 1.55 times as on 31st March 2023 against 1.61 times in the previous year.

Rating Sensitivities

Improvement in scale of operations and profitability.
Further elongation in working capital operations

Liquidity Position

Stretched

The liquidity position of the company is stretched marked by high reliance on working capital limits, and working capital intensive nature of operations marked by GCA days of 166 days in FY2023. However, the cash accruals generated stood at Rs.2.61 Cr. for FY2023 against maturing debt repayment obligation of Rs.0.74 Cr. during the same period.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	56.52	45.32
PAT	Rs. Cr.	1.95	0.89
PAT Margin	(%)	3.45	1.96
Total Debt/Tangible Net Worth	Times	3.15	4.70
PBDIT/Interest	Times	2.35	2.10

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Entities In Manufacturing Sector:- https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
19 Aug 2023	PC/PCFC	Short Term	5.00	ACUITE A4+ (Reaffirmed)
	Letter of Credit	Short Term	7.00	ACUITE A4+ (Reaffirmed)
	Proposed Packing Credit	Short Term	37.44	ACUITE A4+ (Reaffirmed)
	Cash Credit	Long Term	6.00	ACUITE BB- \| Stable (Reaffirmed)
	Term Loan	Long Term	1.02	ACUITE BB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.54	ACUITE BB- \| Stable (Reaffirmed)
25 May 2022	Cash Credit	Long Term	6.25	ACUITE BB- \| Stable (Upgraded from ACUITE B)
	PC/PCFC	Short Term	5.00	ACUITE A4+ (Upgraded from ACUITE A4)
	Letter of Credit	Short Term	7.00	ACUITE A4+ (Upgraded from ACUITE A4)
	Proposed Letter of Credit	Short Term	8.00	ACUITE A4+ (Assigned)
	Proposed Packing Credit	Short Term	2.50	ACUITE A4+ (Upgraded from ACUITE A4)
	Proposed Packing Credit	Short Term	28.25	ACUITE A4+ (Assigned)
28 Apr 2021	Letter of Credit	Short Term	7.00	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	PC/PCFC	Short Term	8.75	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	5.00	ACUITE B (Reaffirmed & Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.00	Simple	ACUITE BB- \| Reaffirmed & Withdrawn
Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE A4+ \| Reaffirmed & Withdrawn
Bank of India	Not avl. / Not appl.	PC/PCFC	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A4+ \| Reaffirmed & Withdrawn
Not Applicable	Not avl. / Not appl.	Proposed Packing Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	37.44	Simple	Not Applicable\|Withdrawn
Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Aug 2024	1.02	Simple	ACUITE BB- \| Reaffirmed & Withdrawn
Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2026	0.54	Simple	ACUITE BB- \| Reaffirmed & Withdrawn

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Sahil Sawant Associate - Rating Operations Tel: 022-49294065 sahil.sawant@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.