: CRISIL Ratings :
Sri Lalitha Enterprises Industries (P) Limited
March 29, 2010
Mumbai
CRISIL ‘BB-’ for SRI LALITHA ENTERPRISES INDUSTRIES’ bank facilities
Rs.376.80 Million Long Term Loan BB-/Stable (Assigned)
Rs.123.20 Million Cash Credit BB-/Stable (Assigned)

CRISIL has assigned its rating of ‘BB-/Stable’ to the bank facilities of Sri Lalitha Enterprises Industries (P) Limited, (Sri Lalitha). The rating reflects Sri Lalitha’s below-average financial risk profile and working capital intensive nature of operations. These rating weaknesses are mitigated by the company’s established market position, and promoters’ extensive industry experience in the rice milling business.

Outlook: Stable
CRISIL expects Sri Lalitha to maintain its moderate business profile backed by long standing presence in the rice milling business. The outlook may be revised to ‘Positive’ if the company is able to improve its capital structure considerably from current levels or in case of any significant improvement in profitability. Conversely, it may be revised to ‘Negative’ in case of any large debt funded capex affecting the company’s capital structure or deterioration in its realisation and margins.

About the Company
Incorporated in December 2004, Sri Lalitha is engaged in milling, processing and marketing of rice. The company’s rice mills are at Peddapuram (Andhra Pradesh). The company has two units with a total installed milling capacity of 70 tons per hour (tph). Sri Lalitha reported a profit after tax (PAT) of Rs. 34.5 Million on net sales of Rs. 1550 Million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of Rs. 38 Million on net sales of Rs. 1543 Million for 2007-08.

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March 29, 2010

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