C&S Electric Limited

ICRA has assigned SP 2A grading to C&S Electric Limited (CSEL) indicating the High Performance
Capability and High Financial Strength of the channel partner to undertake off-grid solar projects. The
grading is valid for a period of one year from May 18, 2012 after which it will be kept under
surveillance.

G
r
a
d
i
n
g

D
r
i
v
e
r
s

Strengths
C&S Electric Limited (CSEL) is one of the leading players in the power equipment industry.
CSEL has already demonstrated its commitment towards the solar energy space as an
EPC contractor- its 1 MW grid connected solar PV power plant in Bhiwani, Haryana has
successfully completed its one year of operations. Furthermore the O&M work at the plant
is being handled by CSEL itself.
The company has submitted bids for grid-tied solar PV power plants of total capacity of
around 5.5 MW and has cleared the technical bidding rounds for those.
The company has tied up with various reputed solar plant component suppliers who have
significant track record in the solar power space.
Well qualified and experienced management.
Existing strong O&M network of the company can be utilized for the solar business.
Strong financial strength characterized by high net worth, and comfortable capital
structure.
Feedback from the bankers and suppliers has been satisfactory.
Risk Factors
The solar operations of the company are presently at a nascent stage with the company
having relatively short track record in the solar power space.
CSEL has so far done EPC work and O& M work for the solar project developed in-house.
It is yet to demonstrate its capability of working for external parties. However, the
companys 1 MW solar PV power plant was commissioned adhering to the stipulated
guidelines and timelines, which mitigates the concern to some extent.
Large number of unorganized players indicating high level of competition may lead to
pressure on margins.

F
a
c
t

S
h
e
e
t

Year of Establishment 1971
Office Address 222, Okhla Industrial Estate, New Delhi- 110 020
Directors Mr. PN Khanna (Chairman Emiritus)
Mr. RN Khanna (Chairman and MD)
Mr. Ashok Khanna (MD)
Mr. P.R. Khanna
Mr. V.N. Koura
Mrs. Kanwal Khanna
Mrs. Anju Khanna
Mr. Anuj Khanna
Mr. Rishi Nath Khanna
Mrs. Radhika Kapoor
Mr. Aditya Khanna
CSEL was incorporated as a partnership firm in 1966. The firm, promoted by Mr. R.N.
Khanna and his brother Mr. Ashok Khanna, was engaged in the assembly of control panels
and was based in New Delhi. The two brothers are graduates from IITs and are first
generation entrepreneurs. It was converted into a private limited company in 1971, and
thereafter into a public limited company in 1988. The company is presently engaged in the
manufacturing of
Low Voltage Switchgear (LVS), Control Panel, Bus Ducts, Bus Trunking, Lighting and wiring
Accessories, Digital relays and EPC contracts involving electrification work for factories.




S
I

R
e
l
a
t
e
d

B
u
s
i
n
e
s
s

H
i
g
h

P
e
r
f
o
r
m
a
n
c
e

C
a
p
a
b
i
l
i
t
y

Promoter Track Record: CSEL formed its solar power division in year 2010 with an
objective of undertaking EPC contracts in solar PV space in the range of 1 MW to 20 MW
based on both crystalline silicon and thin film technologies. The division has so far
implemented 1 MW solar PV plant based on crystalline silicon technology at village
Nandha, District Bhiwani, Haryana. The solar power plant is grid connected and
commenced export of power in June, 2011.

Technical competence and adequacy of manpower: CSEL is engaged in the
manufacturing of various electrical equipments such as Low Voltage Switchgear, Control
Panel, Bus Ducts, Bus Trunking, Lighting and Wiring Accessories, Digital Relays etc which
are used in critical power applications in power, infrastructure, industries & realty
installations. The company has designed and developed several models of contactors,
overload relays and circuit breakers. It has designed and developed Indias first totally
bolted type of enclosure system for LV switchboards, Indias first comprehensive range of
busbar trunking, and Indias first 660MV isolated phase bus ducts.

The company pays special attention to technological innovations with its R&D centers
equipped with CAD/CAM and CAE systems and employing around 70 R&D engineers.

In solar space the companys presence is nascent, however the company has successfully
set up a grid connected 1 MW solar PV power plant in Haryana and is executing the O&M
for the plant as well.

CSEL has a total workforce of 4167 with 40 people as a part of solar PV division. The
workforce at solar PV division comprises 15 people in SI department, 15 people in O&M
department and 5 in marketing department.

Quality of suppliers and tie ups: CSEL has a sourcing tie up with EMMVEE
Photovoltaic Power Private Limited for the supply of solar PV modules. The company has
also tied up with EFACEC (large Portuguese group with presence in transformers,
switchgears, inverters, automation & power generation) for solar inverters. The other
suppliers the company has tied up have satisfactory track record and hold quality
certifications.

Customer and O&M Network: The company has done EPC work for its own 1 MW solar
PV plant in Haryana. CSEL is itself handling the O&M work for its 1 MW solar power plant
at Bhiwani, Haryana. The O&M team (comprising 15 people) maintains the below
mentioned MIS on a regular basis to ensure proper working of the plant-
Daily generation & parameter report
Daily IGBT temperature report
Daily module cleaning report
Monthly string current monitoring report
Monthly inventory report
Monthly AC side and power evacuation check report
Monthly earthing check report
Grid down time report
The O&M team comprises engineers and supervisor (Diploma Holders). CSEL has so far
done O& M work for the solar projects developed in-house. Hence, the company is yet to
demonstrate its capability as an O&M contractor in the solar power space for external parties.
Nonetheless the company has strong O&M network with CSEL having 22 regional and
branch offices for its core business operations (i.e. electrical equipments) across India, which
can be utilized for solar business of the company.




F
i
n
a
n
c
i
a
l

S
t
r
e
n
g
t
h

H
i
g
h

Revenues Revenues of Rs. 681.87 Crore in FY 2011
( based on audited results) and Rs.
554.27 Crore in first 9 months of FY 2012
(based on provisional numbers)
Return on Capital Employed (RoCE) 15.12% in FY 2011
Total Outside Liabilities / Tangible Net worth 1.00 times in FY 2011
Interest Coverage Ratio Interest coverage of 4.74 times in FY
2011 ( based on audited results) and 2.54
times in first 9 months of FY 2012 (based
on provisional numbers)
Net-Worth Net worth of Rs. 363.06 Crore as on
March 31, 2011
Current Ratio Current ratio of 1.62 times in FY 2011
Relationship with bankers Bankers are quite satisfied with
companys conduct

The overall financial profile of the company is high characterized by high net worth and strong
capital structure.

May, 2012

For further details please contact:

Analyst Contacts:
Mr. Sabyasachi Majumdar (Tel. No. +91 124 4545304)
sabyasachi@icraindia.com

Relationship Contacts:
Mr. Vivek Mathur (Tel. No. +91-124-4545310)
vivek@icraindia.com


Copyright, 2012, ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. The ICRA
ratings are subject to a process of surveillance which may lead to a revision in ratings. Please visit our website
(www.icra.in) or contact any ICRA office for the latest information on ICRA ratings outstanding. All information
contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although
reasonable care has been taken to ensure that the information herein is true, such information is provided as is
without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or
implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein
must be construed solely as statements of opinion and ICRA shall not be liable for any losses incurred by users from
any use of this publication or its contents


Registered Office
ICRA Limited
1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi 110001
Tel: +91-11-23357940-50, Fax: +91-11-23357014

Corporate Office
Mr. Vivek Mathur
Mobile: 9871221122
Email: vivek@icraindia.com

Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002
Ph: +91-124-4545310 (D), 4545300 / 4545800 (B) Fax; +91-124-4545350

Mumbai
Mr. L. Shivakumar
Mobile: 91-22-30470005/9821086490
Email: shivakumar@icraindia.com

3rd Floor, Electric Mansion, Appasaheb Marathe Marg,
Prabhadevi, Mumbai - 400 025
Ph : +91-22-2433 1046/ 1053/ 1062/ 1074/ 1086/ 1087
Fax : +91-22-2433 1390
Kolkata
Ms. Anuradha Ray
Mobile: 91-33-22813158/9831086462
Email: anuradha@icraindia.com

A-10 & 11, 3rd Floor, FMC Fortuna, 234/ 3A, A.J.C. Bose
Road, Kolkata-700020.
Tel: +91-33-2287 6617/ 8839/ 2280 0008
Fax: +91-33-2287 0728
Chennai
Mr. Jayanta Chatterjee
Mobile: 9845022459
Email: jayantac@icraindia.com

5th Floor, Karumuttu Centre, 498 Anna Salai, Nandanam,
Chennai-600035.
Tel: +91-44-2433 3293/ 94, 2434 0043/ 9659/ 8080, 2433
0724, Fax:91-44-24343663

Bangalore
Mr. Jayanta Chatterjee
Mobile: 9845022459
Email: jayantac@icraindia.com

2 nd Floor. ,Vayudhoot Chambers, Trinity Circle, 15-16
M.G.Road, Bangalore-560001.
Tel:91-80-25597401/ 4049 Fax:91-80-25594065

Ahmedabad
Mr. L. Shivakumar
Mobile: 9821086490
Email: shivakumar@icraindia.com

907 & 908 Sakar -II, Ellisbridge,
Ahmedabad- 380006
Tel: +91-79-26585494, 26582008,26585049, 26584924
TeleFax:+91-79- 2648 4924
Pune
Mr. L. Shivakumar
Mobile: 9821086490
Email: shivakumar@icraindia.com

5A, 5th Floor, Symphony, S.No. 210, CTS 3202, Range Hills
Road, Shivajinagar,Pune-411 020
Tel : (91 20) 2556 1194 -96; Fax : (91 20) 2556 1231
Hyderabad
Mr. M.S.K. Aditya
Mobile: 9963253777
Email: adityamsk@icraindia.com

301, CONCOURSE, 3rd Floor, No. 7-1-58, Ameerpet,
Hyderabad 500 016.
Tel: +91-40-2373 5061 /7251 Fax: +91-40- 2373 5152