Zen Technologies Limited

May 05, 2022

Ratings
Instrument / Amount Rating Complexity
Ratings
Facility (Rs. crore) Action Indicator
Long Term Bank
Facilities – Fund
– – Withdrawn Simple
Based – Term
Loan
Long Term Bank
Facilities – Fund
– – Withdrawn Simple
Based – Cash
Credit
Long Term /
Short Term Bank
Facilities – Non – – Withdrawn Simple
Fund Based –
Bank Guarantee
Short Term Bank
Facilities – Non
– – Withdrawn Simple
Fund Based –
Letter of Credit
Total –
Details of Facilities are in Annexure 1

Key Rating Drivers and Detailed description of the key rating drivers
Infomerics Valuation and Rating Private Limited has withdrawn the outstanding rating
assigned to the Bank Facilities of Zen Technologies Limited with immediate effect. The
above action has been taken at the request of Zen Technologies Limited and No Due
Certificate received from the State Bank of India and Indian Bank that had extended the
facilities rated by Infomerics.

Detailed Rationale
The rating is withdrawn in accordance with Infomerics’ policy on withdrawal.

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Analytical Approach: Standalone

Applicable Criteria:
Policy on Withdrawal of Ratings

About the Company

Incorporated in 1993, Zen Technologies Limited designs, develops and manufactures
combat training simulator/solutions for the training of defence and security forces. Zen
Technologies is headquartered in Hyderabad, India with offices in India and USA. Zen
Technologies Limited is an ISO 9001:2015 (QMS), ISO 14001:2015 (EMS), ISO/IEC
27001:2013 (ISMS) and CMMI Maturity Level 5 company. Zen Technologies is publicly listed
on Bombay Stock Exchange and the National Stock exchange.

Financials (Standalone)*:
(Rs. Crore)
31-Mar-2020 31-Mar-2021 31-Dec-2021
For the year ended / As on
(A) (A) (U/A)
Total Operating Income 146.98 49.57 37.74
EBITDA 65.50 10.67 4.78
PAT 60.51 4.10 0.62
Total Debt 0.81 0.77 12.01
Tangible Net worth 198.75 213.15 290.27
EBITDA Margin (%) 43.99 20.33 11.83
PAT Margin (%) 40.64 7.81 1.54
Overall Gearing Ratio (times) 0.00 0.00 0.04
A: Audited; U/A: Unaudited
*Classification as per Infomerics standards

Status of non-cooperation with previous CRA: Nil

Any other information: None

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Rating History for last three years:
Current Ratings (Year 2022-23) Rating History for the past 3 years
Amount Date(s) & Date(s) & Date(s) &
Name of
Sr. outstandin Rating(s) Rating(s) Rating(s)
Instrument Type Rating
No. g(Rs. assigned in assigned in assigned
/ Facilities
Crore) 2022-23 2020-21 in 2019-20
07-Apr- 16-Feb- 10-Dec-
2021 2021 2019
Fund IVR BB / IVR BB+ / IVR BBB+ /
Long
1. Based – 0.00 Withdrawn Issuer not Issuer not Stable
Term
Term Loan cooperating* cooperating* Outlook
Fund
IVR BB / IVR BB+ / IVR BBB+ /
Based – Long
2. 0.00 Withdrawn Issuer not Issuer not Stable
Cash Term
cooperating* cooperating* Outlook
Credit
Long
Non Fund IVR BB / IVR BB+ / IVR BBB+ /
Term
Based – IVR A4; IVR A4+ Stable
3. / 0.00 Withdrawn
Bank Issuer not Issuer not Outlook /
Short
Guarantee cooperating* cooperating* IVR A2
Term
Non Fund
IVR A4 / IVR A4+ /
Based – Short
4. 0.00 Withdrawn Issuer not Issuer not IVR A2
Letter of Term
cooperating* cooperating*
Credit

Name and Contact Details of the Rating Analyst:

Name: Mr. Rupesh Dhuri Name: Mr. Noman Agashiwala
Tel: (022) 62396023 Tel: (022) 62396023
Email: [email protected] Email: [email protected]

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About Infomerics:
Infomerics commenced rating & grading operations in April 2015 after having spent over 25
years in various segments of financial services. Infomerics is registered with the Securities
and Exchange Board of India (SEBI) and accredited by Reserve Bank of India. It is gradually
gaining prominence in domestic rating and/or grading space. Infomerics is striving for
positioning itself as the most trusted & credible rating agency in the country and is gradually
widening its product portfolio. Company’s long experience in varied spectrum of financial
services is helping it to fine-tune its product offerings to best suit the market.

Disclaimer: Infomerics ratings are based on information provided by the issuer on an ‘as is where is’ basis.
Infomerics credit ratings are an opinion on the credit risk of the issue / issuer and not a recommendation to buy,
hold or sell securities. Infomerics reserves the right to change, suspend or withdraw the credit ratings at any
point in time. Infomerics ratings are opinions on financial statements based on information provided by the
management and information obtained from sources believed by it to be accurate and reliable. The credit quality
ratings are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy,
sell or hold any security. We, however, do not guarantee the accuracy, adequacy or completeness of any
information, which we accepted and presumed to be free from misstatement, whether due to error or fraud. We
are not responsible for any errors or omissions or for the results obtained from the use of such information. Most
entities whose bank facilities/instruments are rated by us have paid a credit rating fee, based on the amount and
type of bank facilities/instruments. In case of partnership/proprietary concerns/Association of Persons (AOPs),
the rating assigned by Infomerics is based on the capital deployed by the partners/proprietor/ AOPs and the
financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the
unsecured loans brought in by the partners/proprietor/ AOPs in addition to the financial performance and other
relevant factors.

Annexure 1: Details of Facilities

Size of Rating
Date of Coupon Maturity
Name of Facility Facility Assigned/
Issuance Rate/ IRR Date
(Rs. Crore) Outlook
Long Term Bank
Facilities – Fund Based – – – – 0.00 Withdrawn
Term Loan
Long Term Bank
Facilities – Fund Based – – – – 0.00 Withdrawn
Cash Credit
Long Term / Short Term
Bank Facilities – Non
– – – 0.00 Withdrawn
Fund Based – Bank
Guarantee
Short Term Bank
Facilities – Non Fund – – – 0.00 Withdrawn
Based – Letter of Credit

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Annexure 2: List of companies considered for consolidated analysis: Not Applicable

Annexure 3: Facility wise lender details: Not applicable as the ratings are withdrawn

Annexure 4: Detailed explanation of covenants of the rated instrument/facilities: Not

Applicable

Note on complexity levels of the rated instrument: Infomerics has classified instruments
rated by it on the basis of complexity and a note thereon is available at www.infomerics.com.