April 09, 2014
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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Last updated: May, 2013

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April 09, 2014