- Commercial paper programme - Rs. 6 crore Rating : P1+ (reaffirmed)
The rating assigned to the commercial paper programme of Munjal Showa Ltd. (MSL) has been reaffirmed at 'P1+' (pronounced P one plus).
The rating takes into account MSL's sole supplier status with Hero Honda Motors Ltd. (HHML), its reputation as a quality manufacturer, its financial risk profile and access to managerial and financial support of the Hero Group. The rating also factors in the company's increasing dependence on HHML and its total dependence on the OEM segment of the market.
MSL is engaged in the manufacture and sales of shock absorbers, front forks, struts and window balancers. It reported a PAT of Rs. 121.3 million on net sales of Rs. 1556.3 million in FY 1999.