Thus, the ratings of Rs 10 crore non-convertible debenture and Rs 46.9 crore NCDs has been revised to the lowest D category from the earlier BBB Plus. The rating shows that the instrument is in default or is expected to default on maturity. ``The rating reflects the inability of the company to meet its debt obligations in a timely manner,'' it said.

The company's operational cash flows are low after the spin off of its manufacturing facility into a JV and delays in full commissioning of the Hospet project. The cash flows from investments are also insufficient to meet its obligations.