MUMBAI, September 23: Crisil said increased competitive pressures, declining collection efficiencies, large investments in companies which have not yielded adequate returns and strained liquidity and financial position had adversely affected the cash flows of the company.The agency also downgraded the rating for the Rs 12.91 crore non-convertible deventure issue of Standard Industries Ltd (SIL) from "BBB+" to "BBB-" due to increase in financial risk, continued adverse cost structure of the textiles division and pressure on caustic soda division's profitability.
The higher financial risk is on account of substantial increase in lease financing for captive power facilities. The high cost structure of textile operations continue to erode the profitability while the over-capacity coupled with slow down in the user industries has affected the performance of the caustic soda division, the release added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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