April 01, 2013

Mumbai

Kavveri Telecom Products Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.935 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 Kavveri Telecom Products Limited (KTPL). The suspension of ratings is on account of non-cooperation by KTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KTPL is yet to provide adequate information to enable CRISIL to assess KTPL’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 Group

KTPL was promoted in 1996 by Mr. Shivakumar Reddy. It designs, develops, and manufactures antennae, RF components, and repeaters for the wireless telecommunication (telecom) industry. The company’s promoter has been in the same line of business through a proprietorship concern since 1991. KTPL has set up operations in Canada and the US through its acquisition of Tiltek, DCI, and SWL. KTI is in the business of providing in-building coverage solutions (to boost telecom network coverage inside a building) on build-own-operate-and-lease basis for telecom service providers.

CRISIL has combined the business and financial risk profiles of KTPL and its subsidiaries Eaicom India Pvt Ltd, Kavveri Technologies Inc (Kavveri Tech, including its subsidiaries Tiltek Antennae Inc [Tiltek], Kavveri Realty 5 Inc, DCI Digital Communication Inc [DCI], Spotwave Wireless Ltd [SWL]), and Kavveri Telecom Infrastructure Ltd (KTI). This is because all the entities, together referred to as the KTPL group, are in the same line of business and under a common management. Furthermore, CRISIL believes that KTPL will extend need-based support to its subsidiaries.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	300	Suspended	Cash Credit	300	CRISIL B-/Stable
Corporate Loan	100	Suspended	Corporate Loan	100	CRISIL B-/Stable
Letter of credit & Bank Guarantee	350	Suspended	Letter of credit/Bank Guarantee	350	CRISIL A4
Term Loan	185	Suspended	Term Loan	185	CRISIL B-/Stable
Total	935	--	Total	935	--

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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Vasudevan R Director - CRISIL Ratings Tel: +91-44-6656 3100 Email:vasudevan.r@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: April 30, 2012

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April 01, 2013	http://www.crisil.com