Financial Daily from THE HINDU group of publications
Friday, Jan 09, 2004
Financial Daily from THE HINDU group of publications Friday, Jan 09, 2004 |
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Money & Banking
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Credit Rating Corporate - Short Term Instruments ICRA reaffirms `A1' for Vardhman Polytex CP Our Bureau
New Delhi , Jan. 8 ICRA has reaffirmed the `A1' rating assigned to the Rs 10-crore CP programme of Vardhman Polytex Ltd (VPL), indicating the highest safety in the short-term. The reaffirmation factors in low gearing level, comfortable liquidity position and the expected improvement in the performance of the company during 2003-04 due to the recent increase in yarn realisations. The rating is however, constrained by the volatile operating margins of VPL due to the commodity price cycle risks associated with the company's products and the company's substantial capital expenditure plans for setting up expansion projects in the next two years, which are likely to be partly financed through debt. The project-related expenditure, which is large in relation to the present asset size of the company, could adversely impact the favourable liquidity position currently enjoyed by the company, ICRA has said.
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