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CRISIL has assigned its ‘B+/Stable’ rating to the bank facilities of Panache Aluminium Extrusions Pvt Ltd (PAEPL). The rating reflects PAEPL’s project risks and high gearing. The rating also reflects CRISIL’s expectation that PAEPL will face intense competition, given the fragmented nature of the moulding, extrusion, and coating business, which will keep its profitability low. These rating weaknesses are partially offset by the benefits PAEPL derives from its promoters’ experience in the aluminium profiles and billets trading business.
Outlook: Stable
CRISIL believes that PAEPL is likely to complete its ongoing project on schedule. The outlook may be revised to ‘Positive’ if the company reports more-than-expected cash accruals, and reduces its gearing. Conversely, the outlook may be revised to ‘Negative’ in case of significant delays in project implementation, or if the company generates lower-than-expected cash accruals.
About the Company
PAEPL was incorporated in August 2009 by Mr. Anil Padliya, Mr. Vipul Padliya, Mr. Akshay Padliya, Mr. Vaibhav Padliya, and Mr. Rajesh Yadav. The company plans to manufacture aluminium extrusion profiles in various alloys. It has purchased 10 acres of land in Ahir in Satara, Maharashtra, and plans to set up moulding, extrusion, and coating units at the location. Currently, the project with a planned capacity size of 10,570 tonnes per annum is in its initial stages of implementation, and the company plans to start commercial production in December 2010.
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Media Contacts
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Analytical Contacts
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CRISIL Rating Desk
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Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1838
Email: msamar@crisil.com
Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22-3342 1818
Email: tabhinandan@crisil.com
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Pawan Agrawal
Director – CRISIL Ratings
Tel: +91-22-3342 3301
Email: pagrawal@crisil.com
Ashutosh Satsangi
Head - CRISIL Ratings
Tel: +91-22-3342 3096
Email: asatsangi@crisil.com
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Tel: +91-22-3342 3047 / 3342 3064
Email: CRISILratingdesk@crisil.com
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Note:
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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 generally available without charge to the public on the CRISIL public 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.
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