Cosmo Films Ltd
29 Feb 2000
- Non convertible debenture -Rs. 10.33 crore Rating : B to BBB-(upgraded)
- Non convertible debenture - Rs. 7.5 crore Rating : B to BBB-(upgraded)
The ratings assigned to Cosmo Film Limited's (CFL) Rs.103.3 Million and Rs.75 million Non Convertible Debenture Programmes have been upgraded from "B" (pronounced single B) to "BBB-" (pronounced triple B minus).
The rating upgrade reflects an improvement in the financial risk profile of the company, arising out of restructuring of the company's outstanding long term liabilities, improved outlook on the company's market position, reflected in the strong growth in its export volumes and higher capacity utilisation levels. The rating also factors in the weak prices in the domestic BOPP industry, which still accounts for a major proportion of company's sales, due to continuing demand-supply mismatch and company's plans of capacity expansion, mainly through debt funding.
CFL, one of the earliest entrants in the Indian Bi-axially Oriented PolyPropylene (BOPP) film industry, is one of the largest players in the BOPP market. For the year ended March 31, 1999, CFL reported an operating income of about Rs.850 million and a net loss of Rs.19 million.
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