Rating Rationale
Brickwork Ratings reaffirms ‘BWR BB-’ / Outlook (Stable) / A4 for enhanced Bank
Loan Facilities aggregating ₹ 41.00 Cr of Green Gold Timber Pvt. Ltd
Brickwork Ratings has reaffirmed
the following Ratings1 for Bank Credit facility
sanctioned/availed amounting to Rs.41.00 Crore by Green Gold Timber Pvt. Ltd ( or the
'Company') :-
Facility
Previous
Limits
(₹ Cr)
Limits
(₹ Cr)
Fund Based
Cash Credit
5.75
7.50
33.50
33.50
Non Fund Based
Letters of Credit
Total
Previous Rating
Rating
BWR BB(Pronounced BWR
double B minus)
Outlook-Stable
BWR A4
(Pronounced BWR A
four )
BWR BB(Pronounced BWR
double B minus)
Outlook-Stable
BWR A4
(Pronounced BWR A
four)
INR 41.00 (INR Forty One Crore only)
BWR has principally relied upon the audited financial results of FY12 - FY15, provisional
financials for FY 2016, projected financials up to FY18and publicly available information and
information/clarification provided by the company's management.
The rating has factored, inter alia, longstanding experience of promoters in the timber business
and established relationship with customers and suppliers. The Rating is however; constrained
by intense competition from established players, modest scale of operations, thin profit margins,
volatility associated with raw material prices and low entry barriers.
Business Overview:
Green Gold Timber Pvt Ltd, is promoted by Mr. Akhilesh Manglik in year 1998. The company is
enaged in the business of importing timber from New Zealand, Malaysia, Estonia, Indonesia
Belgium, Germany, USA and France. The promoter of the company has two decades of
experience in the timber business.
The company’s Saw- Mill is located at Gandhidham- Gujarat with capacity to convert timber logs
to commercial sawn sizes ~1,500 CFT per day. The company’s sales of processed timber are
made to states like Jammu & Kashmir, Uttar Pradesh Delhi, Madhya Pradesh, Guajarat and
Maharashtra.
Management Profile:
Akhilesh Manglik is the Chairman and Managing Director of the company. The other directors
are Ms.Rita Manglik and Mr. Anuj Manglik. The promoters of the company together own more
than 95% of the shares of the company.
1
Please refer to www.brickworkratings.com for definition of the Ratings
www.brickworkratings.com
1
31 Aug 2016
Financial Performance:
Operating income of the company for FY15 was Rs.108.90 crore as against Rs.94.60 crore in
FY14. As per the provisional financials for FY2016 operating income was FY 118.77 crore. The
company reported net profit of Rs.0.54 crore for FY15which marginally increased to Rs.0.55
crore in FY16 (provisional).
The gearing of the company declined to 1.00x as on March 31 st 2016 from 2.89x as on March 31st
2015. The net worth of the company was Rs.6.12 crore as on March 31st 2016.
Rating Outlook:
The rating outlook is expected to be stable over the current year. Going forward, the ability of
the company to scale up its operations, improve capacity utilization and profitability, strengthen
capital structure and manage working capital efficiently.
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
31 Aug 2016