Rating Rationale Brickwork Ratings assigns ‘BWR BB-’ & ‘BWR A4’ rating for the Bank Loan Facilities of ₹ 13.83 Cr of Global Packaging. Brickwork Ratings (BWR) has assigned the following Ratings1 for the Bank Loan facilities aggregating ₹ 13.83 Cr of Global Packaging. (‘GP or the firm’). Facility Limits (₹ Cr) Cash Credit Fund Based 6.60 Term Loan – I Fund Based 0.99 Term Loan – II Fund Based 2.38 Tenure Long Term Term Loan – III Fund Based 3.13 Sub Limit: Buyers Credit Fund Based (3.13) Term Loan – IV Fund Based 0.27 Bank Guarantee Non-Fund Based 0.46 Total 13.83 Rating^ BWR BB(Pronounced BWR Double B Minus) Outlook : Stable Short Term BWR A4 (Pronounced BWR A Four) (INR Thirteen Crores and Eighty Three Lakhs only) BWR has principally relied upon the audited financial results up to FY14, and projections for FY15, publicly available information and information/clarifications provided by the management. The rating reflects the experience of the promoters in the yarn manufacturing business, increase in revenue from operations and improvement in operating profitability. The rating also factors the favourable location of the firm near to the textile hub. However, the ratings are constrained by small scale of operations, project implementation risk of the ongoing capex, moderate financial risk profile marked by low net profit margins. The rating is further constrained by volatility associated with the input prices and presence of strong players in a highly fragmented industry. Background GP established as Partnership firm in 2011 promoted by Mr. Kshitij Yadav, Mr. Pawan Yadav and Mr. Sumit Yadav. The company is engaged in manufacturing of texturized yarn, twisted 1 Please refer to www.brickworkratings.com for definition of the Ratings www.brickworkratings.com 1 27 Jan 2015 yarn and grey knitted fabrics. GP generates a majority income through the sale of texturized yarn and further from sale of knitted fabrics. The company caters majorly the western part of India and earns its revenue from the domestic markets. GP has two plants located in Silvassa, Daman and Dadra & Nager Haveli, having total installed capacity of 2300 metric tonnes per annum (MTPA) as on March 31, 2014. The company is in the process of setting up two warp knitting machine. Management Profile GP is managed by Mr. Kshitij Yadav who looks after the aspects of procuring order, quality, control and production. Mr. Pawan Yadav looks after day to day administration and liasioning work with various agencies. Mr. Sumit Yadav looks after the marketing activities. Mr. Ajeet Yadav is the mentor of the unit. Financial Performance GP has reported total operating income of ₹ 30.33 Cr and operating profit of ₹2.77 Cr in FY14 as against total operating income of ₹24.37 Cr and operating profit of ₹1.46 Cr in FY13. Net profit increased to ₹0.20 Cr in FY14 from ₹0.05 in FY13. Tangible net worth has marginally increased to ₹5.60 Crs in FY14 from ₹5.30 Crs in FY13. Rating Outlook The outlook is expected to be stable for the current year. Going forward, the firm's ability to complete the capex within the envisaged time, scale up its operations, improve leveraged position and manage working capital efficiently will be the key rating sensitivities. Analyst Contact Relationship Contact [email protected] [email protected] Phone Media Contact 1-860-425-2742 [email protected] Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons. www.brickworkratings.com 2 27 Jan 2015
© Copyright 2024