November 26, 2013

Mumbai

Taparia Tools Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.365 Million
Long -Term Rating	Suspended
Short -Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Taparia Tools Ltd (TTL). The suspension of ratings is on account of non-cooperation by TTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TTL is yet to provide adequate information to enable CRISIL to assess TTL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’

About the Company

Incorporated in 1987 as TTL and promoted by Mr. H. N. Taparia, the company primarily deals in hand tools such as adjustable spanners, pliers and screw drivers TTL has a manufacturing capacity of 1750 metric tonnes (MT) in Nasik and Goa. Around 30 per cent of TTL’s production is from own production facilities, while the balance is outsourced to contract manufacturers working exclusively for TTL. Domestic sales account for 95 per cent of total sales and the rest 5 per cent is from exports to countries like Argentina, Sweden, and Norway. Taparia is listed on the Bombay Stock Exchange (BSE).

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee	50	Suspended	Bank Guarantee	50	CRISIL A3+
Cash Credit	280	Suspended	Cash Credit	280	CRISIL BBB/Stable
Letter of Credit	30	Suspended	Letter of Credit	30	CRISIL A3+
Proposed Long-Term Bank Loan Facility	5	Suspended	Proposed Long-Term Bank Loan Facility	5	CRISIL BBB/Stable
Total	365	--	Total	365	--

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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Mobile: +91- 98192 48980 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com	Mohit Makhija Director - CRISIL Ratings Tel: +91-124-672 2000 Email: mohit.makhija@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 Email:CRISILratingdesk@crisil.com

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Last updated: May, 2013

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November 26, 2013	http://www.crisil.com