Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.50 ACUITE B | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 10.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 16.00 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long term rating of ‘ACUITE B’ (read as ACUITE B)  and short term rating of ‘ACUITE A4’ (read as ACUITE A four)  on the Rs.16.00 crore bank facilities of Chhabi Electricals Private Limited (CEPL). This rating is now an indicative rating and is based on account of information risk.


About the Company

­Chhabi Electricals Private Limited (CEPL) is a Jalgaon-based company incorporated in 1978 to take over the existing business of a proprietorship firm established in 1965. It is promoted by Mr. Chhabiraj Rane, who possesses three decades of experience in the industry. The company is engaged in manufacturing of electronic components such as transformers, battery charger, modular DC systems, etc. and trading of batteries.

 
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 06 consecutive months. Acuité has also 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 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.

 
Material Covenants
­None
 
Liquidity Position

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

 
Outlook
­Not Applicable
 
Key Financials:

The entity has not shared the latest financial statement despite repeated requests and followups.

 
Status of non-cooperation with previous CRA
None
 
Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups

 
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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
15 Feb 2022 Proposed Bank Facility Short Term 5.75 ACUITE A4 (Reaffirmed)
Cash Credit Long Term 5.50 ACUITE B | Stable (Reaffirmed)
Letter of Credit Short Term 2.00 ACUITE A4 (Reaffirmed)
Bank Guarantee Short Term 2.75 ACUITE A4 (Reaffirmed)
23 Nov 2020 Proposed Bank Facility Short Term 0.50 ACUITE A4 (Reaffirmed)
Letter of Credit Short Term 3.50 ACUITE A4 (Reaffirmed)
Bank Guarantee Short Term 4.00 ACUITE A4 (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE B | Stable (Reaffirmed)
27 Aug 2019 Cash Credit Long Term 8.00 ACUITE B | Stable (Reaffirmed)
Bank Guarantee Short Term 4.00 ACUITE A4 (Reaffirmed)
Proposed Bank Facility Short Term 0.50 ACUITE A4 (Reaffirmed)
Letter of Credit Short Term 3.50 ACUITE A4 (Reaffirmed)
29 Jul 2019 Proposed Bank Facility Short term 0.50 ACUITE A4 (Issuer not co-operating*)
Letter of Credit Short term 3.50 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 8.00 ACUITE B (Issuer not co-operating*)
Bank Guarantee Short term 4.00 ACUITE A4 (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 2.75 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.50 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Loan Not Applicable Not Applicable Not Applicable 5.75 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in