(Reuters) – India’s Gensol Engineering on Wednesday denied falsifying debt-related data, after credit rating agency ICRA downgraded the company and raised concerns over its liquidity position and corporate governance practices.
WHY IT’S IMPORTANT
Credit rating agencies ICRA and Care Edge Ratings downgraded the construction and engineering firm this week and noted ongoing delays in the company’s debt servicing.
ICRA said it has learnt Gensol had shared a falsified debt servicing track record and raised concerns about the company’s corporate governance practices, including its liquidity position.
CONTEXT
The company denied any involvement in claims made by the rating agencies and added it would be setting up a committee to review the matter.
“These are challenging times and we are taking decisive steps towards strengthening our financial position and ensuring long-term financial stability,” Gensol added.
BY THE NUMBERS
The firm’s stock fell 10% on Wednesday after plunging 20% in the previous session.
The company’s current debt stands at 11.46 billion rupees ($131.70 million). Its consolidated revenue for the first nine months of the current fiscal year stood at 10.53 billion rupees.
($1 = 87.0150 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Vijay Kishore)
