July 23, 2012

Mumbai

Alutop

Rated Amount Enhanced

Total Bank Loan Facilities Rated	Rs.120 Million (Enhanced from Rs.73.1 Million)
Long-Term Rating	CRISIL BB-/Stable (Reaffirmed)
Short Term Rating	CRISIL A4+ (Reaffirmed)

(Refer to Annexure 1 for details on facilities)

CRISIL’s ratings on the bank facilities of Alutop continue to reflect the benefits that Alutop derives from its promoters’ extensive experience in pilfer-proof caps industry and from its established relationships with its key customers and suppliers. CRISIL believes that Alutop will continue to generate healthy growth in revenues, while maintaining its profitability, supported by healthy demand from its end-user segment over the medium term. These rating strengths are partially offset by Alutop’s below-average financial risk profile, marked by high gearing and small net worth. The firm is also exposed to risks related to supplier concentration and intense competition in the pilfer-proof caps industry.

Outlook: Stable

CRISIL believes that Alutop will continue to benefit from its promoters’ extensive industry experience. The outlook may be revised to ‘Positive’ if Alutop scales up its operations, while maintaining its profitability, and improves its capital structure through fresh equity infusion. Conversely, the outlook may be revised to ‘Negative’ if the firm’s financial risk profile deteriorates because of a sharp decline in margins and cash accruals, large, debt-funded capital expenditure (capex), or sizeable capital withdrawal from the firm by the promoters.

About the Firm

Set up in 1990 by Mr. Bhaskar R Uchil, Alutop manufactures pilfer-proof caps. The firm has manufacturing capacity of 2.7 million pilfer-proof caps per day, and also has a metal-printing unit in Bengaluru (Karnataka). Alutop is setting up another metal-printing unit at a cost of around Rs.70 million, which is expected to be fully operational in the third quarter of 2012-13. The firm’s operations are managed by Mr. Bhaskar R Uchil and Mr. K Krishnappa.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	60.0	CRISIL BB-/Stable	Cash Credit	35.0	CRISIL BB-/Stable
Letter of Credit	15.0	CRISIL A4+	Letter of Credit	15.0	CRISIL A4+
Long-Term Loan	45.0	CRISIL BB-/Stable	Long-Term Loan	23.1	CRISIL BB-/Stable
Total	120.0	--	Total	73.1	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Mitu Samar Director , Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1838 E-mail: mitu.samar@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Vasudevan R Director - CRISIL Ratings Tel: +91-44-6656 3100 Email:vasudevan.r@crisil.com	Tel: +91-22-3342 3047/3342 3064 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 crisil helpline at +91 22 3342 3047 / + 91 22 3342 3064 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.

CRISIL PRIVACY NOTICE
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfill your request and service your account and to provide you with additional information from CRISIL and other parts of The McGraw-Hill Companies, Inc. 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's Customer Privacy Policy at http://www.mcgraw-hill.com/site/tools/privacy/privacy_english.
Last updated: April 30, 2012

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.


July 23, 2012	http://www.crisil.com