March 28, 2014

Mumbai

Consolidated Shipping Line (India) Private Limited

'CRISIL BBB-/Stable/CRISIL A3' assigned to bank debt

Total Bank Loan Facilities Rated
Rs.30 Million
Long-Term Rating
CRISIL BBB-/Stable (Assigned)
Short-Term Rating
CRISIL A3 (Assigned)

(Refer to Annexure 1 for details on facilities)

CRISIL has assigned its ‘CRISIL BBB-/Stable/CRISIL A3’ ratings to the bank facilities of Consolidated Shipping Line India Pvt Ltd (CSLIPL; part of the CSL group).

The ratings reflect the CSL group’s long track record in the freight forwarding and logistics business, established relationships with major customers, and above-average financial risk profile, marked by a comfortable capital structure and healthy debt protection metrics. These rating strengths are partially offset by the group’s modest scale of operations in a highly fragmented and intensely competitive industry.

For arriving at its ratings, CRISIL has combined the business and financial risk profiles of CSLIPL and its associate entity, Anchorage Shipping. This is because the two entities, together referred to as the CSL group, operate in the same line of business, and have common promoters, business synergies, and fungible cash flows.

Outlook: Stable

CRISIL believes that the CSL group will continue to benefit over the medium term from the extensive industry experience of its promoters, and maintain its comfortable capital structure supported by low debt levels. The outlook may be revised to 'Positive' if the group reports significant improvement in its scale of operations and profitability while it maintains its comfortable capital structure. Conversely, the outlook may be revised to 'Negative' if the CSL group’s cash accruals are lower than expected, its working capital management deteriorates, or it undertakes a substantial debt-funded capital expenditure programme, leading to weakening of its financial risk profile.

About the Group

CSLIPL, set up in 2002, provides logistics services related to sea freight; Anchorage Shipping, set up in 1997, provides logistics services related to air freight. The group’s services include freight forwarding, customs clearance, and transportation services, among others. It is based in Kochi (Kerala).

The CSL group reported a profit after tax (PAT) of Rs.13 million on an operating income of Rs.551 million for 2012-13 (refers to financial year, April 1 to March 31), against a PAT of Rs.7 million on an operating income of Rs.441 million for 2011-12.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Proposed Long-Term Bank Loan Facility
1
CRISIL BBB-/Stable
--
0
--
Cash Credit
26
CRISIL BBB-/Stable
--
0
--
Non-Fund Based Limit
3
CRISIL A3
--
0
--
Total
30
--
Total
0
--

Media Contacts
Analytical Contacts
Customer Service Helpdesk
Tanuja Abhinandan
Communications and Brand Management
CRISIL Limited
Phone: +91 22 3342 1818
Email:tanuja.abhinandan@crisil.com

Shweta Ramchandani
Communications and Brand Management
CRISIL Limited
Phone: +91 22 3342 1886
Email: shweta.ramchandani@crisil.com
Vasudevan R
Director - CRISIL Ratings
Phone: +91 44 6656 3100
Email:vasudevan.r@crisil.com

Timings: 10.00 am to 7.00 pm
Toll free number: 1800 267 1301
Email:CRISILratingdesk@crisil.com

Note:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc.

Crisil complexity levels are assigned to various types of financial instruments. The crisil complexity levels are available on www.crisil.com/complexity-levels.investors are advised to refer to the crisil complexity levels for instruments that they desire to invest in. Investors may also call the Customer Service Helpdesk with queries on specific instruments.


About CRISIL LIMITED
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Ratings
CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 60,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.

CRISIL PRIVACY NOTICE
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest.
For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view McGraw Hill Financial’s Customer Privacy Policy at http://www.mhfi.com/privacy.
Last updated: May, 2013

Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings rating criteria are available without charge to the public on the CRISIL web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.


March 28, 2014

http://www.crisil.com