Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 6.00 ACUITE B- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 3.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 9.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE B-’ (read as ACUITE B minus) from 'ACUITE B' (read as ACUITE B) and reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 9.00 crore bank facilities of New Era Switchgears Private Limited (NSPL) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­N­ew Era Switchgears Private Limited (NSPL), based in Ujjain (Madhya Pradesh), was established as a partnership firm in the year 1982 and was converted into a private limited company in 1998 by Mr. Mohsin Ali Merchant and Mr. Asgar Ali Badshah. NSPL is engaged in the tender-based business of manufacturing of electrical switchgears which are typically the combination of electrical switches or fuses used by various state electricity boards.

 
Unsupported Rating

­Not Applicable

 
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 non-cooperation 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 ratingis based.

 
Rating Sensitivity

­"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

­None

 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 10.94 9.70
PAT Rs. Cr. 0.12 0.07
PAT Margin (%) 1.08 0.75
Total Debt/Tangible Net Worth Times 1.50 1.25
PBDIT/Interest Times 2.11 2.27
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
08 Jun 2023 Bills Discounting Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 2.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
24 Mar 2022 Bills Discounting Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 2.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
04 Jan 2021 Bank Guarantee (BLR) Short Term 2.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Bills Discounting Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 3.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Bank of Baroda Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )

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