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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 23.00 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 23.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the short-term rating of 'ACUITE A4+’ (read as ACUITE A four Plus) on the Rs. 23 Cr. bank facilities of Deekay Electricals (DK). This rating is now an indicative rating on account of information risk.
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| About the Company |
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Chennai based Deekay Electricals - Chennai was set up in 1996 as a partnership firm by Mr. Arun Kumar, Mr. and Mrs. Sunitha . The firm trades in electrical goods such as electrical wiring switch gears cables and other allied products. The company is engaged as a distributor of lighting and other electrical products for companies like Polycabs, Siemens India, EPCOS etc.
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| About the Group |
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Hyderabad based Deekay Electricals - Hyderabad was set up in 2008 as a partnership firm by Mr. Arun Kumar and Mr. Atish Kumar Srisrimal. The company is engaged in Electricals wholesale and retail.
Bangalore based Deekay Electricals - Bangalore was set up in 2016 as a partnership firm by Mr. Arun Kumar, Mr. Kamal Chand Ostwal, Mrs. Rakhee.H, Mr. Navneet Jhaver. The company is engaged in Electricals wholesale and retail. |
| Non-cooperation by the issuer/borrower |
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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. 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.
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| Limitation regarding information availability |
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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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| All Covenants |
| Not applicable |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not applicable |
| Key Financials: |
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The entity has not shared the latest financial statement for Acuite to comment upon.
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| Status of non-cooperation with previous CRA |
| Not applicable |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on Complexity Levels of the Rated Instrument |
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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
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