Alankit Limited has informed the exchange regarding the rating action taken by the rating agency CARE Ratings.
CARE Ratings has reviewed and revised the total bank facilities ratings of the Company worth Rs16cr.
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Long term bank facilities has been assigned CARE BBB-
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Short term bank facilities has been also revised to CARE A3
In its rationale report, CARE said that the revision in the ratings for the bank facilities of Alankit Limited takes into account the moderation in its financial risk profile characterized by the stretch in its liquidity position as reflected by the increase in its operating cycle in FY20. The ratings also take cognizance of the high dependence of the company on continuation of government schemes and significant exposure of AL to its wholly owned subsidiaries.
Further, CARE stated that the ratings continue to be on credit watch with developing implications on account of the discontinuance of agreement of the company with NSDL e-Governance Infrastructure Limited as a Tax Information Network Facilitator.