Press Release MECHATRONICS SYSTEMS PRIVATE LIMITED November 23, 2022 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	29.50	ACUITE D | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	45.50	-	ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	75.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE D' (read as ACUITE D) from  ‘ACUITE BB+’ (read as ACUITE double B plus) and the short term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.75.00 crore bank facilities of MECHATRONICS SYSTEMS PRIVATE LIMITED (MSPL). The rating is downgraded is on account of information risk required for review of ratings. The rating continues to be an indicative rating and is based on the best available information. The downgrade is on the basis of publicly available information that the company has reported about the ongoing delays in their repayments

About the Company

­MSPL is a Pune based integrated water resource management company engaged in providing automation and real time data solutions in areas such as real time hydro meteorological information systems, flood forecasting and flood management systems with dam automation, smart city water supply management among others. MSPL provides solution for water resources, dams, canals, and water-supply projects and primarily deals with government agencies and urban local bodies. MSPL was formed in 1991 as a partnership concern with the name ‘Mechatronics’. The firm was reconstituted as private limited company in 1996 and its name was changed to Mechatronics Systems Private Limited (MSPL). MSPL is promoted by Mr. Ashok Karva.

Non-cooperation by the issuer/borrower:

­Acuité has 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 an 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.

About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

­"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

Status of non-cooperation with previous CRA

CARE, vide its press release dated September 30, 2021 had denoted the rating of MECHATRONICS SYSTEMS PRIVATE LIMITED as 'CARE BB/Stable/A4; ISSUER NOT COOPERATING’.

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

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 2022 Proposed Bank Guarantee Short Term 29.50 ACUITE A4+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 7.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Secured Overdraft Long Term 13.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Bank Guarantee Short Term 1.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Letter of Credit Short Term 15.00 ACUITE A4+ (Downgraded and Issuer not co-operating*) Secured Overdraft Long Term 9.50 ACUITE BB+ (Downgraded and Issuer not co-operating*) 22 Jan 2020 Secured Overdraft Long Term 13.00 ACUITE BBB- | Stable (Reaffirmed) Letter of Credit Short Term 15.00 ACUITE A3 (Reaffirmed) Bank Guarantee Short Term 1.00 ACUITE A3 (Reaffirmed) Secured Overdraft Long Term 9.50 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 7.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Bank Guarantee Short Term 29.50 ACUITE A3 (Reaffirmed) 28 May 2019 Proposed Cash Credit Long Term 10.00 ACUITE BBB- (Issuer not co-operating*) Proposed Bank Guarantee Short Term 32.50 ACUITE A3 (Issuer not co-operating*) Secured Overdraft Long Term 9.50 ACUITE BBB- (Issuer not co-operating*) Letter of Credit Short Term 15.00 ACUITE A3 (Issuer not co-operating*) Cash Credit Long Term 7.00 ACUITE BBB- (Issuer not co-operating*) Bank Guarantee Short Term 1.00 ACUITE A3 (Issuer not co-operating*)

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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 The Akola Urban Co Operative Bank Ltd Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE D | Downgraded | Issuer not co-operating* The Akola Urban Co Operative Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Punjab National Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 29.50 Simple ACUITE D | Downgraded | Issuer not co-operating* Punjab National Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 9.50 Simple ACUITE D | Downgraded | Issuer not co-operating* The Yavatmal Urban Co-operative Bank Ltd. Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 13.00 Simple ACUITE D | Downgraded | Issuer not co-operating*

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations 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.