Atlas Cycle Industries Ltd

• Non Convertible Debenture - Rs 165 million Rating : Upgraded from A to A+

The A (pronounced single A) rating assigned to the Rs 165 million non convertible debenture issue of Atlas Cycle Industries Limited (ACIL) has been upgraded to A+ (pronounced single A plus). The revision in rating is mainly due to ACIL's improved financial risk profile, as reflected by its gearing and coverage ratios, resulting from plough back of internal accruals, no major capital expenditure undertaken in the past and reduction in the company's long term borrowing position. The rating also factors in the company's well established brand name and strong market position. These are however offset by the inherently low profitability and growth rates in the bicycles business and relatively modest networth of the company.

ACIL was set up in 1951 to manufacture bicycles and at present has three manufacturing locations. For the financial year 1998-99, the net sales of the company stood at Rs 3239.7 million with a net profit of Rs 68.1 million.