CARE has retained a ‘PR1+ [PR One Plus]’ rating assigned to the Short Term Debt (STD)/Commercial Paper (CP) Programme for Rs.5cr of Chandigarh Distillers & Bottlers Ltd. (CDBL). The STD/CP Programme of Rs.5cr would be a part of overall working capital limit (fund based). Instruments with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk.
The rating takes into account consistent track record of company, low gearing and adequate interest coverage. The rating also considers CDBL’s broad product portfolio, adequate cash flows and comfortable liquidity position.
CDBL was promoted by Shri Suresh Kumar Modi and his son Shri Amit Kumar Modi in April 1986. The company is engaged in manufacture and bottling of potable alcohol and country liquor. CDBL also has a licensing arrangement to manufacture various brands of Indian Made Foreign Liquor of McDowell and Triumph Distillers & Vintners Pvt. Ltd., both UB group companies.
The financial profile of CDBL is comfortable with consistent operating margins and steady cash flow generation from operations. Total income of the company has remained stagnant during FY’06 due to change in product portfolio.
PBILDT margin of the company has reduced marginally to 4.48% during FY’06 due to increase in the prices of raw material (grain), power & fuel cost and decrease in average sales realization of ENA and RS. PAT margin marginally improved during FY’06 on account of other income viz., sale of surplus power to PSEB and interest earned on inter corporate deposits.
As on March 31, 2006, overall gearing of the company stood low at 0.49 times on account of healthy internal accruals. Interest cover was comfortable at 7.86 times during FY’06. The current ratio has been satisfactory in the past few years and was at 1.32 times as on March 31, 2006.
Posted By Staff Reporter
in Punjab News
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