Credit rating agency, CARE has reaffirmed ‘BB’ rating to Shree Rajasthan Syntex’s long-term bank facilities worth Rs 149.89 crore. The rating agency has also reaffirmed ‘A4’ rating to the company’s short-term bank facilities worth Rs 22.72 crore. The company has received the said rating on the back of its modest debt protection indicators, high leverage and working capital intensive operations.
Shree Rajasthan Syntex (SRSL) is engaged in the production of synthetic-blended and cotton yarn. The company manufactures yarn in the range of 18-30 counts (averaging around 25 counts). SRSL currently has 67,584 spindles for synthetic-blended yarn and 14,520 spindles for cotton yarn. Its manufacturing facilities for synthetic blended and cotton yarn are located at Dungarpur (Rajasthan).