Credit rating agency, CARE has assigned ‘CARE BB+’ to Glory Polyfilms (GPL) long-term bank facilities for Rs 88.55 crore. The agency has also assigned ‘PR4+’ ratings to the company’s short-term bank facilities for Rs 21.00 crore.
GPL’s ability to maintain its profit margin amidst volatile raw material prices as well as adequately manage its working capital is the key rating sensitivities.
The ratings are constrained by volatile raw material prices, exposure to a single supplier for raw material supply, significantly high working capital utilization and diversion of short-term funds for long-term purposes in FY10.
Glory Polyfilms’ main object is to carry on the business of manufacturing of co extruded multi layer barrier film for packing of various food and non-food products. The company mainly caters to the food industry and the FMCG sectors as well as some industrial sectors.
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