New Delhi: Electrical equipment company Gensol Engineering Ltd (GEL) on Wednesday said proceeds from the series of asset divestments will be used to reduce debt. The company has stated this amid concerns around recent credit rating downgrades. Acknowledging the credit rating downgrades by CARE and ICRA the firm said that it has happened due to a short-term liquidity mismatch which is improving by way of customer payments. That said we understand the concerns these downgrades have raised and are committed to addressing them responsibly to all our stakeholders it said in a statement. The firm denied involvement in falsification claims and said it would be setting up a committee to comprehensively review the matter. This underscores the companys commitment to accountability transparency and sustainable business practices. Gensol said it had strong financials with an order book of more than Rs 7000 crore 42 per cent growth in revenue to Rs 1056 crore in the first nine months of current fiscal 89 per cent EBITDA growth to Rs 246 crore and 34 per cent rise in profit to Rs 67 crore. These are challenging times and we are taking decisive steps toward strengthening our financial position and ensuring long-term financial stability it said. The total current debt stood at Rs 1146 crore against the reserves of Rs 589 crore making it a debt-equity ratio of 1.95. In the current financial year we have reduced our debt obligation by Rs 230 crore the company said adding that it has initiated a series of asset divestments to significantly reduce debt. The measures include the sale of 2997 electric vehicles worth Rs 315 crore and sale of a wholly-owned Gensol subsidiary company for Rs 350 crore. As a result of these two divestments our debt will significantly reduce by Rs 665 crore resulting in a debt-equity ratio of 0.8 it said. While the company continues to pay its debt obligations all proceeds from the above initiatives will be directly utilised toward repaying our existing debt and working capital obligations. Through these periodic interventions and upcoming planned initiatives the firm said it is resolute in its goal of achieving a zero net debt status. We are confident in our ability to navigate this period and emerge stronger. We value the trust of our stakeholders and will provide regular updates as we progress towards our financial goals the statement added.