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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 30.00 | ACUITE C | Downgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 30.00 | ACUITE D | Downgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 105.00 | - | ACUITE A4 | Downgraded | RBI |
| Bank Loan Ratings | 0.00 | 135.00 | - | ACUITE D | Downgraded | RBI |
| Total Outstanding | 0.00 | 300.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
| Rating Rationale |
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Acuite has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.30.00 crore bank facilities and downgraded its short-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A3' (read as ACUITE A Three) on the Rs.135.00 crore bank facilities of Kumar Electricals and Power Infra Private Limited (KEPIPL).
Acuité has downgraded its long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BBB-' (read as ACUITE Triple B minus) on the Rs.30.00 crore bank facilities and downgraded its short-term rating to 'ACUITE A4' (read as ACUITE A Four) from 'ACUITE A3' (read as ACUITE A Three) on the Rs.105.00 crore bank facilities of Kumar Electricals and Power Infra Private Limited (KEPIPL). Rationale of Rating Downgrade The downgrade is based on the feedback received from one of the lender where in there was an instance of Letter of Credit (LC) devolvement in October 2025, which led to an overdrawal in the cash credit account for more than 30 days, resulting in the account being classified as NPA in January 2026. Subsequently, the account was reinstated to Standard (Non-SMA) status in March 2026. |
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| About the Company |
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KEPIPL is an electrical EPC player involved in planning, designing and executing turnkey electrical projects for various govt, semi govt and private bodies across Karnataka. The company was originally established as a proprietorship firm in 1978, then converted to a partnership firm and subsequently to a private ltd company in 2021-22. The company holds a Super Grade electrical license and commissions H.V & E.H.V. transmission lines ranging from 66 KV to 220 KV. The current directors of the company are R. V. Rohit, Sneha Rohit, Mangala Vasanth Kumar and Kavitha Nagarajan.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
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Acuité has considered a standalone approach while assessing the business and financial risk profile of KEPIPL.
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| Key Rating Drivers |
| Strengths |
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Established track record of operations
KEPIPL has an established track record of over four decades in the industry. The company is a Super Grade licensed electrical contractor, issued by the state department. The company has worked with various key Karnataka electrical departments such as Karnataka Industrial Area Development Board (KIADB), Karnataka Power Transmission Corporation Limited (KPTCL) and Bangalore Electricity Supply Company Limited (BESCOM). Further, the promoter Mr. R V Rohit has an experience spanning over two decades as an EPC contractor which has helped KEPIPL in increasing its scale of operations over the years. |
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Weaknesses |
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Instance of LC devolvement leading to overdrawal in account
In October 2025, the company encountered an LC devolvement in its Bank facility, which triggered a continuous overdrawal in the cash credit account for more than 30 days. This development led to the account being classified as NPA in January 2026. Subsequently, the same was reinstated to Standard (Non-SMA) in March 2026. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Stretched |
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The company’s liquidity position is stretched as depicted by instances of LC devolvement with lender.
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| Outlook - Not Applicable |
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| Other Factors affecting Rating |
| None |
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| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 305.96 | 346.80 |
| PAT | Rs. Cr. | 17.31 | 14.75 |
| PAT Margin | (%) | 5.66 | 4.25 |
| Total Debt/Tangible Net Worth | Times | 0.28 | 0.24 |
| PBDIT/Interest | Times | 3.10 | 5.47 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
| • Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
| *Out of the Rs.135 crores Bank Guarantee facility rated for Canara Bank, Rs.65 crores has been allocated as a sublimit towards Letters of Credit |
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Contacts |
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List of instruments and names of regulators of the instruments |
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As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:
1 Includes securitisation transactions involving assignee payout, acquirer's payout.
2 Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
3 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 4 The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
B. Other activities:
6 permitted by SEBI vide SEBI Master Circular for CRAs.
Disclosure on instruments / activities and names of regulators:
A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:
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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. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity. |
