Symphony Comfort Systems Ltd

• Fixed deposit programme Rating : FA- (reaffirmed)

The ''FA-'' (pronounced ‘FA minus’) rating assigned to the Fixed Deposit Programme of Symphony Comfort Systems Limited (SCSL) has been reaffirmed.

The rating continues to reflect SCSL’s position as one of the strong players in the domestic air-cooler market, an established brand name and its relatively comfortable capital structure. The company’s renewed focus on its main business of air coolers to regain its leadership position in the market has also been factored in favourably. The rating however continues to remain constrained by the highly seasonal nature of the industry, relatively small size of the company’s networth, pressure on its cash flows due to strained working capital position and a decline in cash accruals. The company’s recent initiatives in launching new models as well as the favourable response received on its newly launched booking scheme for dealers during the current year has also been factored in suitably.

Symphony is engaged primarily in the business of manufacturing and sale of air-coolers. The company had in the past, also diversified into selling other consumer durables like water heaters, ventillation fans, grinders, and washers all marketed under the brand "Symphony". However, due to lower than expected performance in these categories SCSL has taken a conscious decision to focus only on two product categories i.e., air coolers and water heaters. During the year 1998-99, the company reported an operating income of Rs. 268.2 million and a profit after tax of Rs. 7.9 million.