December 13, 2013

Mumbai

KLG Systel Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.2700 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of KLG Systel Ltd (KLG). The suspension of ratings is on account of non-cooperation by KLG with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KLG is yet to provide adequate information to enable CRISIL to assess KLG’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 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 Company

Established in 1985, KLG provides information-technology-centric business lifecycle software solutions, consultancy, support, training, and services to organisations in the process, power, manufacturing, and infrastructure sectors. KLG has two strategic business units — business lifecycle solutions and power system solutions. However, the company has planned to shut the operations of its power system solutions segment on account of continued losses and stretched working capital position in the segment.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee*	850	Suspended	Bank Guarantee*	850	CRISIL D
Cash Credit	1000	Suspended	Cash Credit	1000	CRISIL D
Letter of Credit	150	Suspended	Letter of Credit	150	CRISIL D
Term Loan	700	Suspended	Term Loan	700	CRISIL D
Total	2700	--	Total	2700	--

*Interchangeable with letter of credit

Media Contacts	Analytical Contacts	Customer Service Helpdesk
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 Email: 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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December 13, 2013	http://www.crisil.com