PREMIER LTD. - Updates
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| 06 Nov 2015 | |
| Premier Ltd has informed BSE that :<BR><BR>"For the past two years the Company has been facing an adverse business environment in Its operating sectors namely capital goods and heavy engineering. The revenue decline and consequent operating losses, along with heavy debt repayment maturities during the same period have resulted in a temporary fund mismatch beyond the Companys control. A major cause for this mismatch has been the delay in receiving Rs.128 Cr compensation from the Indian Railways by nearly 18 months (now expected by Jan / Feb 16), while in the same period substantial loan repayments to banks and other short term liabilities became due. Had this payment been received in time, this situation would not have occurred.<BR><BR>To resolve this fund mismatch, the Companys lenders, after due diligence including a plant visit and a business feasibility review had approved a Corrective Action Plan to provide the Company long term working capital to rectify this fund mismatch. The Company had presented its case to CARE Ratings that despite this temporary difficult fund position, there was a clear improvement in its future business prospects. The Company has a viable and profitable business model with an adequate order book of Rs.525 Cr. It has a sufficient asset base to cover all its liabilities, with a debt : equity ratio of 0.85:1. The Company is actively working to monetizing its non-core assets, such as surplus land in order to resolve this mismatch and reduce the Companys overall debt. However, the process takes time. Notwithstanding this explanation the rating agency was compelled, under the prevailing rules / policies to revise the Companys rating for long term bank facilities from CARE B to CARE D and for short term bank facilities from CARE AA to CARE D. The Promoters and Management remain committed and confident to taking the necessary steps to restore and normalise the current situation at the earliest." | |
| View all announcements for PREMIER LTD. | Source: BSE India |
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