Rating Rationale
August 22, 2024 | Mumbai
Tecpro Systems Limited
Issuer not cooperating, based on best-available information; Ratings continues to be 'CRISIL D/CRISIL D Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.4250 Crore
Long Term RatingCRISIL D (ISSUER NOT COOPERATING*; Rating continues at the same level)
Short Term RatingCRISIL D (ISSUER NOT COOPERATING*; Rating continues at the same level)
 
Rs.150 Crore Commercial Paper&CRISIL D (ISSUER NOT COOPERATING*; Rating continues at the same level)
& The company did not place this in the market
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this rating rationale did not provide the requisite information needed to conduct the rating exercise or did not provide the No Default Statements (NDS) for the last three months and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Tecpro Systems Ltd (TSL) for obtaining information through letters and emails dated, June 19, 2024, apart from telephonic communication. However, the issuer has remained non-cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of TSL, which restricts CRISIL Ratings’ ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TSL is consistent with ‘Assessing Information Adequacy Risk’. Furthermore, the company is under liquidation as per NCLT (National Company Law Tribunal) order dated January 16, 2020. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has continues its ratings on the bank facilities and the commercial paper of TSL at 'CRISIL D/CRISIL D Issuer Not Cooperating'.

About the Company

TSL, incorporated in 1990, provides material handling (MH) solutions on a turnkey basis for power, cement, coal storage, steel and other metallurgical plants. Its projects involve designing, engineering, manufacturing, supplying, erection and commissioning of MH systems.

Key Financial Indicators

As on/for the period ended March 31*

Unit

2015

2014

Revenue

Rs Crore

271

856

Profit after tax (PAT)

Rs Crore

(1081)

(569)

PAT margin

%

(392)

(63.2)

Adjusted debt/adjusted networth

Times

NA

15.52

Interest Coverage

Times

NA

NA

*The company had not submitted financials to the exchange from fiscal 2016 onwards

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)*

ISIN Name of the instrument Date of
Allotment		 Coupon
Rate (%)		 Maturity
Date		 Issue size
(Rs. Crore)		 Complexity
Level		 Rating assigned
with outlook
NA Commercial Paper% NA NA 7 to 365 days 150 Simple CRISIL D/Issuer Not Cooperating
NA Bank Guarantee#$ NA NA NA 1,650 NA CRISIL D/Issuer Not Cooperating
NA Cash Credit** NA NA NA 950 NA CRISIL D/Issuer Not Cooperating
NA Letter of Credit and Bank Guarantee*** NA NA NA 1,650 NA CRISIL D/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

#Includes sub-limits of Rs 630 crore for letter of credit (LC), Rs 190 crore for export invoice financing, Rs 25 crore for import invoice financing, Rs 25 crore for short-term money market loan, Rs 25 crore for overdraft, USD 12 million (INR equivalent Rs 78 crore) for financial guarantee/standby LC, Rs 190 crore for export packing credit (EPC) and Rs 63 crore for buyer's credit

**Includes sub-limit of Rs 20 crore for EPC, Rs 50 crore for clearing against cheques, Rs 2 crore for foreign bill discounting, Rs 100 crore for inland bill discounting (BD), Rs 10 crore for BD, Rs 165 crore for working capital demand loan and Rs 30 crore for vendor finance facility

***Includes sub-limit of Rs 300 crore for third-party guarantees

$Includes a limit of Rs 205 crore fully interchangeable with LC

%The company did not place this in the market

Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 950.0 CRISIL D (Issuer Not Cooperating)*   -- 30-08-23 CRISIL D (Issuer Not Cooperating)* 19-09-22 CRISIL D (Issuer Not Cooperating)* 29-10-21 CRISIL D (Issuer Not Cooperating)* CRISIL D (Issuer Not Cooperating)*
Non-Fund Based Facilities ST 3300.0 CRISIL D (Issuer Not Cooperating)*   -- 30-08-23 CRISIL D (Issuer Not Cooperating)* 19-09-22 CRISIL D (Issuer Not Cooperating)* 29-10-21 CRISIL D (Issuer Not Cooperating)* CRISIL D (Issuer Not Cooperating)*
Commercial Paper ST 150.0 CRISIL D (Issuer Not Cooperating)*   -- 30-08-23 CRISIL D (Issuer Not Cooperating)* 19-09-22 CRISIL D (Issuer Not Cooperating)* 29-10-21 CRISIL D (Issuer Not Cooperating)* CRISIL D (Issuer Not Cooperating)*
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Bank Guarantee&@ 110 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 205 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 285 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 200 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 215 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 560 CRISIL D (Issuer Not Cooperating)*
Bank Guarantee&@ 75 CRISIL D (Issuer Not Cooperating)*
Cash Credit~ 240 CRISIL D (Issuer Not Cooperating)*
Cash Credit~ 130 CRISIL D (Issuer Not Cooperating)*
Cash Credit~ 475 CRISIL D (Issuer Not Cooperating)*
Cash Credit~ 30 CRISIL D (Issuer Not Cooperating)*
Cash Credit~ 75 CRISIL D (Issuer Not Cooperating)*
Letter of credit & Bank Guarantee%% 1650 CRISIL D (Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
& - Includes a limit of Rs 205 crore fully interchangeable with LC
@- Includes sub-limits of Rs 630 crore for letter of credit (LC), Rs 190 crore for export invoice financing, Rs 25 crore for import invoice financing, Rs 25 crore for short-term money market loan, Rs 25 crore for overdraft, USD 12 million (INR equivalent Rs 78 crore) for financial guarantee/standby LC, Rs 190 crore for export packing credit (EPC) and Rs 63 crore for buyer's credit
~ - Includes sub-limits of Rs 20 crore for EPC, Rs 50 crore for clearing against cheques, Rs 2 crore for foreign bill discounting, Rs 100 crore for inland bill discounting (BD), Rs 10 crore for BD, Rs 165 crore for working capital demand loan and Rs 30 crore for vendor finance facility
%% - Includes sub-limit of Rs 300 crore for third-party guarantees
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
CRISILs Approach to Recognising Default
CRISILs Criteria for rating short term debt

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