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SGPL after detection disconnected the illegal connection but it was divulged that the gas theft had been continued during the last many years as the residents of flats took direct connections from main pipeline through building plants.
The revision in outlook reflects CRISIL's belief that SGPL will maintain its turnover growth over the near term, leading to higher cash accruals.
The ratings continue to reflect SGPL's weak financial risk profile, marked by high gearing and weak debt protection measures, and the impact of government policy on its business and profitability.
CRISIL believes that SGPL will maintain its business risk profile backed by experience of its promoters in the cotton industry.
CRISIL believes that SGPL will complete the implementation of its glass manufacturing plant on time and commence commercial operations by December 2010.
SGPL, based in Hyderabad, is currently constructing a glass manufacturing plant (container glass) in Cuddapah (Andhra Pradesh) with capacity of 175 tonnes per day.
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- Sgr A
- SGR system