CARE reaffirms rating of Golden Goenka Fincorp’s Secured Redeemable NCDs

Credit rating agency, CARE has reaffirmed ‘BB-’ rating to Golden Goenka Fincorp’s Secured Redeemable Non-Convertible Debenture worth Rs 50.00 crore.

The company has received the said rating on the back of volatile nature of company’s core business, high risk asset portfolio as majority of loans advanced are unsecured in nature, short track record in relatively large scale lending operation, risk arising out of concentration of loans to a few clients, significant exposure in group & subsidiary companies majority of which are yet to yield commensurate returns, low profitability and inadequate risk management system.

Golden Goenka Fincorp, being a non-banking financial company, it is in the business of share investment, assets financing, investment banking, equipment lease and finance and bill discounting for reputed companies.