Press Release January 05, 2024 CAPITAL ELECTECH PRIVATE LIMITED Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1.50	ACUITE BB | Reaffirmed | Issuer not co-operating*	-
Bank Loan Ratings	123.50	-	ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding	125.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BB’ (read as ACUITE double B) and Short-term rating of 'ACUITE A4+' (read as ACUITE A four Plus ) on the Rs.125.00 Crore bank facilities of Capital Electech Private Limited (CEPL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk.

About the Company

­Capital Electech Private Limited , established in August 2005 with its registered office at D-1/1, Rajapuri Uttam Nagar, New Delhi, is in the business of upgrading existing power substations and transmission lines, and setting up new power stations, generator sets and transmission lines on turnkey basis for the central and state government entities, and public and private sector organizations. Mr. Om Prakash Sharma, Mr. Vikas Sharma and Mr. Sachin Sharma are the promoters and directors in the company.

Unsupported Rating

­Not Applicable

Non-cooperation by the issuer/borrower

­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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 noncooperation 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 credit rating is based.

Rating Sensitivities

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

Liquidity Position

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

Outlook

­Not Applicable

Other Factors affecting Rating

­Not Applicable

Key Financials

Particulars	Unit	FY 23 (Provisional)	FY 22 (Actual)
Operating Income	Rs. Cr.	140.99	114.69
PAT	Rs. Cr.	8.40	6.48
PAT Margin	(%)	5.96	5.65
Total Debt/Tangible Net Worth	Times	0.32	0.36
PBDIT/Interest	Times	3.42	3.76

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 09 Feb 2023 Cash Credit Long Term 1.00 ACUITE BB | Stable (Assigned) Bank Guarantee Short Term 16.50 ACUITE A4+ (Assigned) Secured Overdraft Long Term 0.50 ACUITE BB | Stable (Assigned) Proposed Bank Guarantee Short Term 52.00 ACUITE A4+ (Assigned) Bank Guarantee Short Term 55.00 ACUITE A4+ (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating HDFC Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 16.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* Punjab National Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 55.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 52.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* HDFC Bank Ltd Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Himanshu Mehta Senior Analyst - Rating Operations Tel: 022-49294065 himanshu.mehta@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.