ICRA revises Keswani NCD rating

THE INVESTMENT Information and Credit Rating Agency (ICRA) has revised downwards the rating assigned to the Rs. 10 crore NCD programme of Keswani Synthetics Industries (KSIL) from LA minus to LC indicating substantial risk. There are inherent elements of risk and timely servicing of debts/obligations could be possible only in case of continued existence of favourable circumstances.

The rating takes into account the tight liquidity position of the company which has been affected by increasing working capital and high debt servicing requirements leading to delays in servicing debt obligations. The cash flows from operations were negative as on March 31, 2000 (accounting year October 1998-March 2000) due to a sudden build-up of receivables.

During the nine month period ended December 31, 2000, KSIL's income from operations stood at Rs. 47.97 crores but PAT levels had declined to Rs. 4.22 crores from Rs. 5.86 crores during the previous nine month period. The decline in PAT was mainly on account of increased interest and depreciation charges during the nine month period ended December 31, 2000.

- Corporate Bureau

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Section  : Business
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