RATING RATIONALE
24Dec2021

High Energy Batteries (India) Ltd

Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 72.95 Crs. of High Energy Batteries (India) Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(15 Mar 2021)
Present
Fund Based 30.45 30.45 Long Term BWR BB+/Stable
Upgrade
BWR BB + /Stable
Reaffirmation/Withdrawal
Non Fund Based 42.50 42.50 Short Term BWR A4 +
Reaffirmation
BWR A4 +
Reaffirmation/Withdrawal
Grand Total 72.95 72.95 (Rupees Seventy Two Crores and Ninety 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

RATING ACTION / OUTLOOK

Brickwork ratings (BWR) has reaffirmed and withdrawn the ratings based on the request of High Energy Batteries limited ("HEBL or "the company") for withdrawal of its ratings and the No Objection Certificate (NOC) received from the lead bank of the consortium. Hence, in accordance with extant regulatory guidelines and BWR Rating Withdrawal Policy, rating for the bank loan facilities of Rs. 72.95 Crs are withdrawn.

ABOUT THE ENTITY

High Energy Batteries (India) Limited (HEBIL) was initially established on 27Sep1961 in Chennai and commenced its commercial production in 1979. It is a ISO 9001:2015 and ISO OSHAS 14001:2004 accredited Company.

The battery manufacturing unit is located at Mathur, Trichy.  The company manufactures Silver Zinc batteries & cells, Nickel and Cadmium cells and Lead Acid batteries etc. Silver zinc batteries and Nickel Cadmium batteries contribute 99.97% of revenue and the balance is from lead acid batteries, 

The  silver zinc batteries are manufactured for use in Indian Army, Navy, Air Force and Launch Vehicles. The company gets defence contracts from various government agencies through competitive bidding.  Due to the unviability of the business, the Company has temporarily suspended the production of lead acid batteries in FY20. It is now focusing on silver zinc batteries and cells and nickel cadmium cells which are primarily supplied to government defence agencies..

The company is a part of the Chennai based Seshaasayee group and the Company’s shares are listed on BSE.

Mr. N Gopalaratnam is the Chairman and Dr. G A Pathanjali is the Managing Director of the company.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 30.45
BWR BB+/Stable
(Reaffirmation/Withdrawal)
15Mar2021
BWR BB+Stable
(Upgrade)
27Mar2020
BWR BBStable
(Upgrade)
19Apr2019
BWR B +Stable
(Reaffirmation)
17Jan2018
BWR B +Stable
(Reaffirmation)
Non Fund Based ST 42.50
BWR A4+
(Reaffirmation/Withdrawal)
15Mar2021
BWR A4 +
(Reaffirmation)
27Mar2020
BWR A4 +
(Upgrade)
19Apr2019
BWR A4
(Reaffirmation)
17Jan2018
BWR A4
(Reaffirmation)
Grand Total 72.95 (Rupees Seventy Two Crores and Ninety 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

Kaushik Srikanth V

Rating Analyst kaushik.s@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
High Energy Batteries (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 Canara Bank Cash CreditSanctioned 6.75 _ 6.75
2 Canara Bank Bank GuaranteeSanctioned _ 7.00 7.00
3 Canara Bank Inland Letter of Credit (ILC)Sanctioned _ 3.00 3.00
4 Indian Bank Inland Letter of Credit (ILC)Sanctioned _ 3.00 3.00
5 Indian Bank Open Cash Credit / Cash Credit (Hypothecation/Pledge)Sanctioned 6.75 _ 6.75
6 Indian Bank Bank GuaranteeSanctioned _ 7.00 7.00
7 UCO Bank Cash CreditSanctioned 15.00 _ 15.00
8 UCO Bank Bank GuaranteeSanctioned _ 16.50 16.50
9 UCO Bank Letter of CreditSanctioned _ 6.00 6.00
10 UCO Bank Covid -19 Emergency Line CreditSanctioned 1.95 _ 1.95
Total 30.45 42.50 72.95
TOTAL (Rupees Seventy Two Crores and Ninety Five lakhs Only)
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