Credit rating agency, CARE has reaffirmed ‘B+’ rating to Santaram Spinners’ long-term bank facilities worth Rs 2.80 crore. The rating agency has also reaffirmed ‘B+/ A4’ rating to company’s Long/Short term Bank Facilities worth Rs 8 crore.
The ratings assigned to the bank facilities of Santaram Spinners (SSL) continue to remain constrained on account of its thin profitability due to limited value addition in the cotton ginning business, weak debt protection indicators and leveraged capital structure. The ratings are further constrained by the working capital intensive operations and susceptibility of its operating margin to volatile cotton prices and seasonality associated with the availability of cotton coupled with impact of changes in government policy on cotton.
SSL is engaged in cotton ginning and pressing with an installed capacity of 300 Metric Tons per Day (MTPD) along with the trading of kapas, ginned cotton and cotton seeds. SSL has also set up an oil mill with 11 oil expellers having an installed capacity of 10 MTPD for manufacturing raw oil and de-oiled cakes. The manufacturing facilities of the company are located at Kadi, Gujarat.
Company Name | CMP |
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PDS | 441.00 |
Vardhman Textiles | 449.30 |
Arvind | 371.60 |
Welspun Living | 139.85 |
Alok Inds | 25.50 |
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