: CRISIL Ratings :

May 03, 2011
Mumbai

CRISIL assigns ‘B-’ and ‘P4’ ratings to C.L. International’s bank facilities

Rs.112.5 Million Cash Credit Limit*	B-/Stable (Assigned)
Rs.75.0 Million Packing Credit	P4 (Assigned)
Rs.60.0 Million Foreign Bill Purchase	P4 (Assigned)
Rs.2.5 Million Bank Guarantee/Letter of Credit^	P4 (Assigned)

* Including proposed limit of Rs.97.5 Million
^ Letter of Credit and Bank Guarantee are fully interchangeable

CRISIL has assigned its ‘B-/Stable/P4’ ratings to the bank facilities of C.L. International (CLI).

The ratings reflect CLI’s weak financial risk profile, marked by high gearing, weak debt protection metrics and small net worth, small scale of operations, and susceptibility to intense market competition and adverse regulatory changes. These rating weaknesses are partially offset by CLI’s established position in the rice trading business and the healthy growth prospects of the rice industry.

Outlook: Stable
CRISIL believes that CLI will continue to maintain its established position in the rice trading industry, over the medium term. However, its financial risk profile will continue to remain weak because of its large working capital requirements. The outlook may be revised to ‘Positive’ if CLI’s net worth improves substantially, driven by equity infusion, or in case of more-than-expected improvement in net cash accruals. Conversely, the outlook may be revised to ‘Negative’ if CLI’s financial risk profile deteriorates because of withdrawal of capital or weak working capital management.

About the Firm
Based in New Delhi, CLI is a trader of basmati and non-basmati rice; both varieties contribute equally to the turnover. Started in 1995, a partnership firm, CLI is being managed by Mr. Abhishek Gupta and his brother, Mr. Abhinav Gupta. About 90 per cent of CLI’s turnover is from trading rice; the balance 10 per cent is from trading commodities such as ghee, spices, and pulses, among others. CLI exports basmati rice to the US, Thailand, and the United Arab Emirates (UAE).

CLI reported a profit after tax (PAT) of Rs.0.71 million on net sales of Rs.649.6 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of Rs.1.10 million on net sales of Rs.556.2 million for 2008-09.

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Mitu Samar Head, Market Development & Communications CRISIL Limited Tel: +91-22- 3342 1838 E-mail: msamar@crisil.com Tanuja Abhinandan Market Development & Communications CRISIL Limited Tel: +91-22- 3342 1818 Email: tabhinandan@crisil.com	Gurpreet S Chhatwal Director - CRISIL Ratings Tel: +91-11-4250 5100 Email: gchhatwal@crisil.com Manish Kumar Gupta Head - CRISIL Ratings Tel: +91-11-4250 5100 Email: mkgupta@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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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.

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Last updated: March 31, 2011

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May 03, 2011	http://www.crisil.com

C.L. International