Brickwork Ratings assigns ratings to the Working Capital facilities of Harita NTI Ltd

Brickwork Ratings has assigned ratings to the Working Capital facilities of Harita NTI Ltd.

'BWR BBB-' rating has been assigned for the Fund based Working Capitallimits of Rs.12 crores and 'BWR A3' rating has been assigned for Non-fund based Letter of Credit / Bank Guarantee limits of Rs.3 crores.

Harita NTI Ltd is a 50:50 joint venture between HaritaVenu Pvt. Ltd. (HVPL) and Northern Technologies International Corporation (NTIC), USA. It was formed in the year 2000.HVPL is wholly owned by Mr. Venu Srinivasan, Chairman and MD of TVS Motor Company. NTIC is a Nasdaq listed companydevelops and markets environmentally beneficial, material science-based products and technical services.

HNTI has been licensed by NTIC to manufacture and market certain products. They include the 'Zerust' range of eco-friendly Volatile Corrosion Inhibiting products and 'Natur- Tec' bio-degradable polymers for consumer and industrial applications. In 2008 the Company entered the 'Polymer Energy' (PE) business, a technology for converting plastic waste into fuel. However, this business proved to be unviable and will be exitted in FY13.

HNTI has availed fund and non-fund based working capital facilities from State Bank of India. The overall limit has been enhanced from Rs.9 crores in FY11 to Rs.15 crores in FY12. As per provisional financials for FY12, HNTI has a Net Worth of Rs.10.99 crores. Total debt stood at Rs.11.62 crores. Net Sales for the year were Rs.37.10 crores and Net Loss was Rs.1.81 crores. (The Company incurred a loss in FY12 owing to the PE business. Net Profit after excluding the PE business stood at Rs.3.08 crores.)

Source : Equity Bulls

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