Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 210.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 210.00 - -
 
Rating Rationale
­Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ACUITE A- (read as ACUI TE A minus) on the Rs. 210 crore bank facilities of Syska LED Lights Pvt Ltd (SLLPL). The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information.
The downgrade is on account of information risk.

About the Company
­SLLPL was incorporated in 2012 at Pune by Mr. Rajesh and Mr. Govind Uttamchandani. The company is engaged in trading and manufacturing of LED Lights, personal grooming products, irons, fans and home wires under the brand name of ‘SYSKA’. It has its factories in Rabale and Chakan in Maharashtra.
 
About the Group
­SYSKA Group comprises of 6 companies, namely Shree Sant Kripa Appliances Private Limited (SSKAPL), Syska E-Retails LLP (SELLP), SYSKA LED Lights Private Limited (SLLPL), Bagh Bahar Appliances Private Limited (BBAPL), SSK Retails Private Limited (SRPL) and SSK Infotech Private Limited (SIPL). The group is primarily engaged in mobile distribution business exclusively for Samsung under its flagship company SSKAPL. The group is also engaged in the manufacturing and trading of LED lights, home wires, irons, fans and personal care and grooming products under their own brand name of 'SYSKA'. BBAPL is the exclusive distributor for Samsung mobiles across Pune and its outskirts, LG home appliances in Pune district and Haier home appliances in Mumbai region. SRPL currently operates 26 Samsung Smart Phone Cafes across India. SIPL provides electronic data services and solutions to telecom and multi-national companies; and printing and mailing activities such as printing of cheques and current/savings account statements, mainly for banks. SELLP is engaged in the trading of SYSKA Brand Products such as LED Bulbs, Tube Lights, Panel Lights, Irons, Fans, Extension Boards, Power Banks, Bluetooth, Speakers, and Personal Care grooming products for both men and women through ECommerce platforms. SLLPL is engaged in the trading and manufacturing of LED Lights, grooming and personal care products and home wires, irons and fans under the 'SYSKA' brand name.
 
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 rating is based.
 
Rating Sensitivities
­­No information provided by the issuer / available for Acuite to comment upon.
 
All Covenants
­Not Applicable
 
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 (Provisional) FY 22 (Actual)
Operating Income Rs. Cr. 4707.90 3710.68
PAT Rs. Cr. 17.64 (16.11)
PAT Margin (%) 0.37 (0.43)
Total Debt/Tangible Net Worth Times 0.87 0.96
PBDIT/Interest Times 1.27 0.95
Status of non-cooperation with previous CRA
Care vide its press release dated 6th Dec 2022, had rated the company to CARE B/Stable; Issuer Not Cooperating.
 
Any other information
FY2023 (Provisional) submitted by the company and quoted in the relevant section below are neither CA certified nor signed by the company management.
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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
20 Jul 2022 Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 70.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 40.00 ACUITE A- | Stable (Reaffirmed)
Proposed Bank Facility Long Term 10.00 ACUITE A- (Withdrawn)
Cash Credit Long Term 50.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Reaffirmed)
11 Jul 2022 Cash Credit Long Term 20.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
Cash Credit Long Term 50.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
Cash Credit Long Term 40.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
Cash Credit Long Term 70.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
Cash Credit Long Term 30.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
Proposed Bank Facility Long Term 10.00 ACUITE A- | Stable (Downgraded from ACUITE A | Stable)
12 Apr 2021 Cash Credit Long Term 50.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A | Stable (Reaffirmed)
Working Capital Term Loan Long Term 5.00 ACUITE A | Stable (Assigned)
Cash Credit Long Term 30.00 ACUITE A | Stable (Reaffirmed)
Working Capital Term Loan Long Term 5.00 ACUITE A | Stable (Assigned)
Cash Credit Long Term 40.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 50.00 ACUITE A | Stable (Reaffirmed)
27 Feb 2020 Cash Credit Long Term 50.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 50.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 40.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 30.00 ACUITE A | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE A | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 70.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 40.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 50.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Indusind Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 30.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
IDFC First Bank Limited Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*

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