Credit rating agency, CARE has reaffirmed ‘BB’ rating to Ahimsa Industries’ long term bank facilities worth Rs 8.95 crore and ‘A4’ rating to company’s Short term Bank Facilities worth Rs 4.50 crore. The ratings assigned to the bank facilities of Ahimsa Industries (AHIL) continue to remain constrained on account of its modest scale of operations, declining profit margin and working capital-intensive operations.
The ratings also take into cognizance the increase in its paid-up share capital and its diversification in the trading of textile products as well as caps for its Polyethylene Terephthalate (PET) preforms. The ratings are further constrained on account of high degree of supplier concentration, leveraged capital structure and susceptibility of its profit margins to volatility in raw material prices and foreign exchange rates.
