Rating Rationale

April 09, 2014

Mumbai

Veto Switchgears and Cables Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.225 Million
Long Term Rating	Suspended
Short Term Rating	Suspended

(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its rating on the bank facilities of Veto Switchgears and Cables Limited (VSPL). The suspension of ratings is on account of non-cooperation by VSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VSPL is yet to provide adequate information to enable CRISIL to assess VSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and views non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information availability risk in Credit ratings"

About the Group

Incorporated in March 2007 by Mr. Vishnu Gurnani and his family members, Veto Electropowers India Pvt.Ltd. (VEPL) is an export-oriented unit which manufactures and exports wires and polyvinylchloride (PVC) cables. Incorporated in June 2007, VSPL is engaged in the manufacturing and sale of wires, PVC cables, general and modular switches, miniature circuit breakers, fans, CFLs and other electrical accessories.

CRISIL has combined the business and financial risk profiles of VEPL and its subsidiaries, VSPL, Veto Electricals Pvt Ltd (VESPL), Veto Power Products Pvt Ltd (VPPL), Veto Electric Components Pvt Ltd (VECPL), Veto Retails Pvt Ltd (VRL), Veto Exim Pvt Ltd (VEL), Veto Lightings Pvt ltd (VLL) and Vankon Switchgears and Cable Pvt Ltd (VSCL). This is because all these companies, together referred to as the Veto group, are under a common management and in the same line of business. VEPL extends financial support to its subsidiaries as and when needed

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs.Million)	Rating	Facility	Amount (Rs.Million)	Rating
Cash Credit	208.5	Suspended	Cash Credit	208.5	CRISIL BBB+/Stable
Letter of credit & Bank Guarantee	10	Suspended	Letter of credit & Bank Guarantee	10	CRISIL A2
Term Loan	6.5	Suspended	Term Loan	6.5	CRISIL BBB+/Stable
Total	225	--	Total	225	--

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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Phone: +91 22 3342 1818 Email:tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Phone: +91 22 3342 1886 E-mail: shweta.ramchandani@crisil.com	Mohit Makhija Director - CRISIL Ratings Phone:+91 124 672 2000 Email: mohit.makhija@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number:1800 267 1301 Email:CRISILratingdesk@crisil.com

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Last updated: May, 2013

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April 09, 2014	http://www.crisil.com