ICRA LIMITED June 09, 2017
Telawne Power Equipments Private Limited
Summary of rated instrumentsInstrument^ | Rated Amount (Rs. crore) | Rating Action* |
Fund Based Limits | 6.70 | [ICRA]B+ (Stable); re-affirmed |
Non Fund Based Limits | 6.00 | [ICRA]A4; re-affirmed |
Unallocated Limit | 2.30 | [ICRA]B+ (Stable)/[ICRA]A4; re-affirmed |
Total | 15.00 |
^Instrument Details are provided in Annexure-1
Issuer did not cooperate; based on best available information.
Rating actionICRA has re-affirmed the long-term rating of [ICRA]B+ (pronounced ICRA B plus) for the Rs. 6.70 crore1fund based limits of Telawne Power Equipments Private Limited ('TPEPL' or 'the company')2. ICRA has also re-affirmed the short-term rating of [ICRA]A4 (pronounced ICRA A four) for the Rs. 6.00 crore non-fund based limits of the company. ICRA has also re-affirmed [ICRA]B+/[ICRA]A4 ratings for the Rs. 2.30 crore unallocated limit. The outlook on the long-term rating is 'Stable'.
RationaleThe rating action is based on best available information. As part of its process and in accordance with its rating agreement with Telawne Power Equipments Private Limited, ICRA has been trying to seek information from the company to undertake a surveillance of ratings; but despite multiple requests, the company's management has remained non-cooperative. In the absence of the requisite information, ICRA's Rating Committee has taken a rating view based on the best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, the company's rating is now denoted as: "[ICRA]B+ (Stable)/[ICRA]A4 ISSUER NOT COOPERATING". The lenders, investors and other market participants may exercise appropriate caution while using this rating, given that it is based on limited or no updated information on the company's performance since the time it was last rated.
Key rating drivers Credit strengthsEstablished experience of the promoters in transformer industry
Registered vendor for reputed players in various industries
Credit weaknessesProfitability is exposed to volatility in raw material prices
Competition from established players in the industry and competitive bidding procedure entailing low profitability
1 100 lakh = 1 crore = 10 million
2 For complete rating scale and definitions, please refer to ICRA's website www.icra.in or other ICRA Rating Publications.
Description of key rating driversIncorporated in 2004, by Mr. Sudhakar Telawne, Telawane Power Equipments Private Limited (TPEPL) is engaged in manufacture of transformers and substations. The company is now managed by Mr. Rakesh Telawne, son of Mr. Sudhakar Telawne. The company is a registered vendor for reputed players such as Oil and Natural Gas Corporation Limited, Maharashtra State Electricity Board, Haryana Vidyut Prasaran Nigam Ltd, Maharashtra State Power Generation Co. Ltd, Bharat Heavy Electricals Ltd., GAIL (India) Limited and Tata Projects Limited, among others. As raw material accounts for 75-80% of the total cost of manufacturing and majority of the orders entered by the company with its customers are fixed price orders, any increase in material cost can have an impact on the margin of the company. The industry is highly competitive, with the presence of established players such as ABB India Limited, Crompton Greaves, Kirloskar Electric Company Limited and Siemens India, amongst other as well as number of unorganised players.
Analytical approach:For arriving at the ratings, ICRA has applied its rating methodologies as indicated below.
Links to applicable Criteria:Corporate Credit Rating - A Note on Methodology
About the company:Incorporated in January 2004, Telawne Power Equipments Private Limited (TPEPL) is engaged in manufacture and repair of industrial transformers. The company is equipped for manufacturing and repairing of different type of transformers up to 50MVA 132KV class transformers. The products are sold under the brand name of 'Telawne' in domestic as well as overseas market. The factory is located in Rabale, Navi Mumbai across an area of 38,000 sq.ft. The factory is ISO 9001-2008 and ISO 14001:2004 certified and the company has received approvals for its products from agencies such as Electrical Research and Development Association and Central Power Research Institute.
Status of non-cooperation with previous CRA: Not Applicable Any other information: Not ApplicableS.No | Name of Instrument | Current Rating (2017) | Chronology of Rating History for the past 3 years | ||||
Type | Rated amount (Rs. crore) | Date & Rating FY2018 | Date & Rating in FY2017 | Date & Rating in FY2016 | Date & Rating in FY2015 | ||
June 2017 | - | December 2015 | - | ||||
1 | Term Loan | Long-term | 0.20 | [ICRA]B+ (Stable) | - | [ICRA]B+ | - |
2 | Cash Credit | Long-term | 6.50 | [ICRA]B+ (Stable) | - | [ICRA]B+ | - |
3 | Letter of Credit | Short-term | 3.00 | [ICRA]A4 | - | [ICRA]A4 | - |
4 | Bank Guarantee | Short-term | 3.00 | [ICRA]A4 | - | [ICRA]A4 | - |
5 | Unallocated Limit | Short- term/Long -term | 2.30 | [ICRA]B+ (Stable)/ [ICRA]A4 | - | [ICRA]B+/ [ICRA]A4 | - |
ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The classification of instruments according to their complexity levels is available on the websitewww.icra.in
Annexure-1Instrument Details
Name of the instrument | Date of issuance/ sanction | Coupon rate | Maturity | Amount rated (Rs. crore) | Current Rating and Outlook |
Cash Credit | - | - | - | 6.50 | [ICRA]B+ (Stable) |
Term Loan | - | - | - | 0.20 | [ICRA]B+ (Stable) |
Letter of Credit | - | - | - | 3.00 | [ICRA]A4 |
Bank Guarantee | - | - | - | 3.00 | [ICRA]A4 |
Unallocated Limit | - | - | - | 2.30 | [ICRA]B+ (Stable)/ [ICRA]A4 |
Source: Telawne Power Equipments Private Limited
ICRA Limited published this content on 08 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 June 2017 07:53:14 UTC.
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