• Non-convertible debentures - Rs. 2.6 crore Rating : AA- (reaffirmed)
• Commercial paper programme - Rs. 15 crore Rating : P1+ (reaffirmed)

Crisil has reaffirmed the AA- rating it had assigned to the Rs. 2.6-crore non-convertible debenture programme of ESAB India Ltd. and the P1+ rating assigned to the company''s Rs. 15-crore commercial paper programme.

The rating factors in the company''s comfortable financial position with cash levels matching overall debt and the market and operational strengths in its welding business. This is offset by the decline in sales and profitability on account of a downturn in the small sized domestic welding industry and intense competition within the industry due to the decline in industrial growth and increased imports.

In the first half of 1999-2000, the company declared a loss of Rs. 1.8 crore on sales of Rs. 56 crore.