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
Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short term ratings to 'ACUITE D' (read as ACUITE D) from ‘ACUITE A3’ (read as ACUITE A three) on Rs.80.00 crore of bank facilities of Safety Controls and Devices Limited (SCADL).
Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short term ratings to 'ACUITE A4' (read as ACUITE A four) from ‘ACUITE A3’ (read as ACUITE A three) on Rs.20.00 crore of bank facilities of Safety Controls and Devices Limited (SCADL).
Rationale for rating:
The rating downgrade factors in the default intimation received from a lender of SCADL, which reported the invocation of a Bank Guarantee (BG) in February 2026, which led to overutilization of the CC/OD account for more than 30 days, and the account got regularized on 13th April 2026.
About the Company
Uttar Pradesh based Safety Controls and Devices Limited (SCADL) was initially established as a proprietorship concern in 1997 and later got converted into a private limited company in June 2015. Further in October 2023, it got converted into an unlisted public limited company. The company is engaged in erection of power sub-stations and installation of safety equipment. The company primarily has its presence in Uttar Pradesh, Uttarakhand and Bihar. The present directors are Mrs. Anjali Chopra, Mr. Rajnish Chopra, Ms. Kamna Sharma, Mr. Tanuj Kumar Saxena and Mr. Abhishek Chopra.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has considered standalone financial and business risk profile of Safety Controls and Devices Limited (SCADL) to arrive at the rating.
Key Rating Drivers
Strengths
Experienced promoters
SCDL is promoted by Mr. Rajnish Chopra who is also the Managing Director in the company. He has been associated with the company since inception and has an experience of over one decade in the erection of power sub-stations. He is actively involved in managing the day-today affairs of the company along with the support of qualified and experienced professional.
Weaknesses
Instances of BG invocation leading to continuous overutilization in CC/OD account for more than 30 days A lender’s feedback had been received on Aug 19, 2026, which reported the invocation of a Bank Guarantee (BG) in February 02, 2026, leading to overutilization of the CC/OD account for more than 30 days, and the account got regularized on 13th April 2026.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Timely servicing of debt obligations
Potential triggers (individual or collective) for a downward rating action:
Any delays in debt servicing, overutilization of limits, or fresh instances of BG invocation or LC devolvement
Liquidity Position
Poor
The liquidity position of the company is marked poor due to instances of recent invocation of BG on Feb 02, 2026, leading to overutilization in the CC/OD account for more than 30 days. The CC/OD account got regularized on April 13, 2026.
Outlook: Not Applicable
Other Factors affecting Rating
None
Key Financials :
Particulars
Unit
FY 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
117.01
102.56
PAT
Rs. Cr.
14.42
7.64
PAT Margin
(%)
12.33
7.45
Total Debt/Tangible Net Worth
Times
0.84
0.83
PBDIT/Interest
Times
2.98
2.99
*FY2026 is based on abridged financials statements
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
