Saurashtra Cements, Samtel downgraded

The rating also factors in the company’s excellent limestone reserves, established brand image, efficient plant operations and distribution network in Gujarat. The rating takes into consideration Saurashtra Cements’ plans to implement a Rs 297 crore project for a significant capacity expansion at its present plant site at Ranavav, construction of jetties and the acquisition of a ship. The project is awaiting financial closure and about Rs 190 crore of the funding requirement has been tied up.

ICRA, another rating agency, has also downgraded the fixed depositrating of Samtel Color Ltd (SCL) to `MA-‘ indicating that there is adequate safety on the instrument. The downgrade takes into account the adverse impact on the financial performance of SCL due to the pressure on domestic prices and margins as the landed import prices of color picture tubes declined.

Icra expects the growth in domestic demand for CPTs to be surpassed by capacity creation by the industry which could lead to an oversupply situation in the medium term. This would put a downward pressure on domestic prices. Icra feels that SCL’s decision to merge Samtel Electron Devices Ltd with it would improve the financial position of the merged entity. "The low leverage and healthy cash flows of SEDL would provide the merged entity with some financial flexibility," the rating agency said in a release.

Crisil has reaffirmed the Triple-B+ and Triple-B ratings assigned to the NCD programmes of Thirani Chemicals and Udaipur Phosphates & Fertilisers respectively. While Thirani Chemicals plans to raise Rs 2.11crore through the NCD route, Udaipur Phosphates & Fertilisers will raise Rs 1.32 crore.

The rating agency has also assigned a P1 rating to the Rs 15 crore commercial paper (CP) programme of Upper Ganges Sugar & Industries Ltd.