RATING RATIONALE
15Feb2024

Broadcast Engineering Consultants India Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs.193.05Crs. of Broadcast Engineering Consultants India Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Nov 2022)
Present
Fund Based 83.05 83.05 Long Term BWR BBB- /Stable
Assignment
BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 110.00 110.00 Short Term BWR A3
Assignment
BWR A4
ISSUER NOT COOPERATING* /Downgrade
Grand Total 193.05 193.05 (Rupees One Hundred Ninety Three Crores and Five 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

Brickwork Ratings (BWR) previously on 16 Nov 2022, assigned the long-short term ratings of BWR BBB-/Stable and BWR A3 for the bank loan facilities of Rs.193.05Crs of Broadcast Engineering Consultants India Ltd.

The ratings of the company were due for an annual review in November 2023. BWR took up with the issuer to provide the required information over emails apart from telephone calls. Despite the best efforts of BWR to get the minimum required information for annual review, the entity has not provided the same and remained non-cooperative in this regard. Due to a lack of management cooperation, non-submission of NDS as per extant guidelines, and absence of review mandate along with adequate information as required for review of ratings, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information in the public domain and in line with SEBI guidelines, BWR has downgraded and migrated the ratings to the ISSUER NOT COOPERATING* category. 

The lenders/investors may note to exercise due caution while using the above ratings which mention "Issuer Not Cooperating", since the rating lacks any projections or forward-looking component as they are arrived at based on the best available information without any management interaction.

LIMITATIONS OF THE RATING

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

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Telecommunication Telecommunication Telecom - Services Telecom - Infrastructure

Broadcast Engineering Consultants India Limited (BECIL), a Mini Ratna Central Public Sector Enterprise (CPSE) was incorporated on 24th March 1995 under the Companies Act, 2013 (erstwhile the Companies Act, 1956) by the Government of India with 100% equity share capital of BECIL held by President of India through Secretary and Joint Secretary of Ministry of Information and Broadcasting.

The Company was initially set up for providing project consultancy services and turnkey solutions encompassing the entire gamut of radio and television broadcast engineering, establishment of transmission facilities i.e content production facilities, terrestrial, like satellite and cable broadcasting in India and abroad.

The company has now diversified into the fields of Strategic Projects such as Information Communication Technology, Electronic Surveillance (namely CCTV, Access Control, Intrusion, Fire Safety, Hydrants, etc.), Electronic Media content including films, Sentinel Analytics, Counter Drones/UAVs etc. The activities include but are not limited to Supply, Installation, Testing and Commissioning, Consultancy Services, Technical Audit, Media Analysis, R&D, projects pertaining to Digital India, City Surveillance, Safe City, Smart City, Make in India, Made in India, Manufacturing, Audio Video and Data Analysis, Cyber Security, Engineering, Procurement & Construction, Project Management Services, Operation and Maintenance, Manpower Placement, AMC and providing the total turnkey project for the critical information infrastructure.

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. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

There is no non cooperation with other CRA.

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 83.05
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
16Nov2022
BWR BBB- Stable
(Assignment)
NA
NA
Non Fund Based ST 110.00
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
16Nov2022
BWR A3
(Assignment)
NA
NA
Grand Total 193.05 (Rupees One Hundred Ninety Three Crores and Five 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

Akanksha

Senior Rating Analyst akanksha@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Broadcast Engineering Consultants India 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 Union Bank of India Over DraftSanctioned 70.00 _ 70.00
2 Union Bank of India Bank GuaranteeSanctioned _ 100.00 100.00
3 Union Bank of India Letter of CreditSanctioned _ 10.00 10.00
4 Union Bank of India GECLSanctioned 13.05 _ 13.05
Total 83.05 110.00 193.05
TOTAL (Rupees One Hundred Ninety Three Crores and Five lakhs Only)
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