RATING RATIONALE
20Jan2022

Sakthi Accumulators Pvt Ltd

Brickwork Ratings downgrades/reaffirms the ratings for the Bank Loan Facilities of Rs. 26.99 Crs. of Sakthi Accumulators Pvt Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(04 May 2020)
Present
Fund Based 17.99 17.99 Long Term BWR B- /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR C +
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 9.00 9.00 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 26.99 26.99 (Rupees Twenty Six Crores and Ninety Nine lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The rating was due for review in May 2021. Brickwork ratings(BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer's financial performance and its ability to service its debt and maintain valid ratings. The company has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation , Brickwork Ratings has downgraded the long-term rating to 'BWR C+' from 'BWR B-/Stable' and reaffirmed the short-term rating at 'BWR A4' and continued the ratings in the Issuer Not Cooperating* category.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY

Sakthi Accumulators Private Limited (SAPL) was incorporated as a private limited company on 13th March 2014 for the manufacture and sale of an entire range of batteries. Its registered office is located at JP Nagar, Bangalore. It was initially established as a partnership firm during 1992 under the name of SakthiElectronics. All the partners of the firm continued to form the management of the newly formed company. It is constituted by three directors and all being family members. SAPL manufactures various types of batteries, like, Tubular batteries applicable for UPS & Solar products, Stationary Tubular cells, Traction batteries, Automotive batteries, Aircraft starting batteries and maintenance free lead acid batteries. Major raw materials for batteries plates include, selenium alloy and virgin lead oxide, while other raw materials include, additives, chemicals, lead ingots, sub oxide etc. All the items are procured from suppliers located in and around Bangalore. The company’s distribution network has spread throughout the country, however, prominently established, in the states of Tamilnadu, Kerala, Andhra Pradesh and Karnataka. It has over 7500 direct customers. Currently, the company is planning to expand its production capacity from 102,000 units to 120,000 units against newly procured orders during the year.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Acuite Ratings continues to maintain the rating of ACUITE B/ACUITE A4 under Issuer Not Cooperating category for bank loan facilities of Rs. 28 crores of Sakthi Accumulators Pvt Ltd on May 11, 2021. 

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 17.99
BWR C+
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
04May2020
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
Non Fund Based ST 9.00
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
04May2020
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 26.99 (Rupees Twenty Six Crores and Ninety Nine lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Roshan Ranjan

Ratings Analyst roshan.r@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sakthi Accumulators Pvt Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 State Bank Of India (SBI) Term LoanOut-standing 2.23 _ 2.23
2 State Bank Of India (SBI) Term LoanOut-standing 4.76 _ 4.76
3 State Bank Of India (SBI) Term LoanProposed 3.00 _ 3.00
4 State Bank Of India (SBI) Cash CreditSanctioned 8.00 _ 8.00
5 State Bank Of India (SBI) Letter of CreditSanctioned _ 5.00 5.00
6 State Bank Of India (SBI) Sales Invoice DiscountingSanctioned _ 4.00 4.00
Total 17.99 9.00 26.99
TOTAL (Rupees Twenty Six Crores and Ninety Nine lakhs Only)
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