Tags:
Journalism of Courage
August 3: DCW Ltd has strongly challenged the downward revision in its credit rating assigned by the Credit Rating Information Services of India Ltd Crisil saying that the company is in a position to meet its obligations on time.
Crisil had recently downgraded DCW8217;s rating with respect to the 14 per cent non-convertible debenture NCD and fixed deposits from BBB8217; to C8217;, indicating substantial risk in meeting its commitments with regard to timely payment of interest and principal.
Emphasising that there was no change in its risk profile, the company said Crisil should have adopted a more pragmatic view and taken into consideration the company8217;s view point before publishing 8220;a totally distorted and one-sided picture8221;.
8220;The company has not committed any default nor is it likely to commit default,8221; it said in a statement here, adding that it had neither defaulted in repayment of principal nor interest in respect of either fixed deposits or debentures.
8220;We are rather critical of Crisil8217;s approach and pessimistic view of the company. Such a critical review and downgrading is most unwarranted where so called bigger companies are lauded more than necessary,8221; it stated.
DCW said it has not been accepting fixed deposits for the last two years and those falling due for repayments were paid on due date with interest. 8220;Though the company can borrow Rs 60 crore under the Companies Act, fixed deposits have come down to Rs 117 lakh as on March 31, 1999. In fact, the debt/equity ratio has been less than one over the last two years,8221; DCW said in a statement.
The company had informed Crisil that it would meet its obligations in respect of repayment of principal and interest. 8220;In spite of this assurance, Crisil has shown rigidity and bias by issuing a press statement which was not warranted in the present circumstances creating unavoidable panic in the minds of public,8221; it said.
Crisil had voiced its concerns with regard to the company being a small player in the commodities business and the impact of depressed demand and the downturn in international prices on its performance.
