/raid1/www/Hosts/bankrupt/TCRAP_Public/131030.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, October 30, 2013, Vol. 16, No. 215
Headlines
A U S T R A L I A
COLLETTE DINNIGAN: To Close Shops After 24 Years
GODDINGS PTY: Hard Rock Cafe Surfers Paradise Opens Doors Again
H&S VISION: McGrathNicol to Sell Group's Assets
TRIO CAPITAL: ASIC Issues Update on Trio Investigation
TRIO CAPITAL: Ex-Manager Pleads Guilty To Making False Statements
C H I N A
WINSWAY COKING: S&P Raises CCR to 'CCC'; Outlook Negative
I N D I A
AVASARALA TECH: ICRA Reaffirms D Ratings on INR371.65cr Loans
BERICAP INDIA: ICRA Reaffirms 'BB' Rating on INR0.68cr Loans
CASTLE LIQUORS: CRISIL Ups Ratings on INR60MM Loans to 'BB+'
CHAITANYA INDIA: ICRA Withdraws 'BB-' Rating on INR15cr Loan
CLASSIC BOTTLE: CRISIL Reaffirms 'B' Ratings on INR250MM Loans
CONSTANT ENGINEERING: CARE Places 'B+' Rating on INR11.75cr Loans
ELDER PHARMACEUTICALS: CARE Reaffirms D Rating on INR184.3cr Loan
EXULT LOGISTICS: CRISIL Cuts Ratings on INR260MM Loans to 'BB+'
FACOR STEELS: ICRA Reaffirms 'D' Ratings on INR78.14cr Loans
GODAVARI KHORE: CRISIL Reaffirms 'D' Ratings on INR120MM Loans
HITECH PRINT: CARE Lowers Ratings on INR18.88cr Loans to 'D'
HITEN FASTENERS: ICRA Assigns 'BB' Ratings on INR14.92cr Loans
JAYKA JANSAHAYAK: CARE Reaffirms BB- Rating on INR3.43cr LT Loans
JEWEL INTERNATIONAL: ICRA Suspends 'B' Rating on INR30.3cr Loans
JOYO PLASTIC: CARE Reaffirms 'BB-' Rating on INR8.47cr Loans
KANAKADHARA VENTURES: ICRA Cuts Ratings on INR178cr Loans to 'BB'
KAY KAY: ICRA Suspends 'BB+' Rating on INR13.5cr Long Term Loan
L.P. HOSPITALITY: CRISIL Suspends 'B' Rating on INR112MM Loans
METROPOLITAN INFRA: CARE Assigns 'D' Rating to INR175cr Loans
NAMAL TRADING: CRISIL Reaffirms 'BB-' Rating on INR100MM Loans
NISAN EXPORTS: CRISIL Reaffirms 'BB+' Ratings on INR75MM Loans
OMKAR COTTON: CARE Reaffirms 'B+' Rating on INR6cr LT Bank Loans
PARAMEX TRANSFORMERS: CARE Cuts Ratings on INR8.68cr Loans to 'D'
PERSANG ALLOY: CARE Rates INR0.47cr LT Bank Loans at 'B+'
PODDER & PODDER: CRISIL Rates INR125MM Cash Credit at 'BB+'
RAMANJANEYA MODERN: ICRA Ups Rating on INR5cr Cash Credit to 'B+'
ROYAL SYNTHETICS: CARE Reaffirms 'BB+' Rating on INR2cr Loans
SARADHA PAPERS: CARE Assigns 'BB+' Rating to INR204.04cr Loans
SHAH NANJI: CARE Rates INR4cr LT Bank Loans at 'BB'
SHEEL CHAND: CARE Assigns 'BB' Rating to INR48.5cr LT Bank Loans
SHETRUNJAY DYEING: ICRA Suspends 'BB-' Rating on INR6.31cr Loans
SHREE AMBE: ICRA Reaffirms 'BB+' Rating on INR10.11cr Loans
SHREE RAM: CARE Reaffirms 'B+' Rating on INR28.61cr LT Loans
SHRI GANGA: ICRA Suspends 'BB-/A4' Rating on INR9.5r Loans
SOLACE ENGINEERS: CRISIL Rates INR50MM Cash Credit at 'B+'
SRI GANESH: CRISIL Suspends 'B+' Rating on INR90MM Loans
SRI LAKSHMI: ICRA Assigns 'B' Ratings on INR13cr Loans
SUMAN MANUFACTURING: ICRA Puts 'B+' Ratings on INR7.45cr Loans
SUNSHIELD CHEMICALS: CRISIL Puts BB- Ratings on Withdrawal Notice
SUNSHINE INFRA: CRISIL Puts B+ Ratings on INR83.7MM Loans
SUSHMA BUILDTECH: ICRA Reaffirms 'BB-' Rating on INR55cr Loans
UTRACON STRUCTURAL: CRISIL Rates INR100MM Cash Credit at 'BB+'
VEERABHADRESWARA RAW: ICRA Reaffirms B+ Rating on INR17.25cr Loan
WEXPER INDIA: ICRA Suspends 'BB+' Rating on INR11cr Bank Limits
N E W Z E A L A N D
PHOENIX FOREX: Forex Software Firm Placed Into Liquidation
SECTION ZERO: La De Da Festival Goes On Despite Liquidation
S I N G A P O R E
BW GROUP: Moody's Places Ba2 CFR on Review for Possible Downgrade
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
COLLETTE DINNIGAN: To Close Shops After 24 Years
------------------------------------------------
Melinda Oliver at SmartCompany reports that fashion designer
Collette Dinnigan has announced plans to close the bulk of her
eponymous business, 24 years after it launched.
According to SmartCompany, The Australian Financial Review has
reported that Dinnigan will close her retail stores, international
catwalk collections, and bridal wear line.
It is understood that she will keep designing a diffusion line for
David Jones, called collette by Collette Dinnigan, and a
childrenswear line, Collette Dinnigan Enfant, the report relays.
The manufacturing for these lines is not done by Dinnigan's
business.
The AFR also reported that Ms. Oliver currently has around 50
staff, of which around approximately 10 will remain, SmartCompany
says.
SmartCompany adds that Ms. Dinnigan runs stores in Sydney,
Melbourne and London, which will close before the end of the year.
SmartCompany relates that the Sydney-based designer said that she
is not closing due to financial problems, but rather that a long-
time search for a compatible business partner to help grow the
business has not proven fruitful.
"What I need is somebody to run the business side of it, and I
haven't been able to find somebody who I thought was right for it.
And we've had extensive searches," the report quotes Ms. Dinnigan
as saying.
GODDINGS PTY: Hard Rock Cafe Surfers Paradise Opens Doors Again
---------------------------------------------------------------
Matthew Killoran at goldcoast.com.au reports that a Sydney
entrepreneur has stepped in to keep the doors open at the iconic
Hard Rock Cafe Surfers Paradise after its previous owner was
placed in administration with debts understood to total more than
AUD3.2 million.
Goddings Pty Ltd, which was connected to the Hard Rock Cafes at
Surfers and Sydney, went into administration in June this year
owing monies to some 200 creditors of which about 100 were staff.
The company was later placed in liquidation, the report relays.
Last week Sydney entrepreneur Jeffrey Kevin Beaumont took control
of the two music-themed restaurants after reaching an agreement
with the liquidator, forensic accountancy and insolvency firm
Cor Cordis, goldcoast.com.au recalls.
According to the report, a Hard Rock Cafe Surfers Paradise
spokesman said the eatery's doors were open.
H&S VISION: McGrathNicol to Sell Group's Assets
-----------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that the assets of
H&S Vision Group are to be sold in the liquidation of 10 entities
in the group.
According to Dissolve.com.au, reports said they owed more than
AUD52 million to creditors. Dissolve.com.au says the company is
reportedly planning to sell prime properties and businesses during
the early part of 2014. On October 21, creditors voted to
liquidate 10 entities after they were placed into receivership and
voluntary administration in August, Dissolve.com.au relays.
Dissolve.com.au notes that the company owed AUD51.6 million to ANZ
Bank and AUD951,174 to unsecured creditors. The assets are valued
at approximately AUD41 million which will leave a
AUD10.5 million shortfall.
Dissolve.com.au relates that McGrathNicol said the managers and
receivers want to continue to trade the related businesses and
implement a strategy for realisation for the businesses and
assets. McGrathNicol also noted that the sale campaigns may start
in the new year, adds Dissolve.com.au.
H&S Vision Group engaged in the development and management of
residential, tourism, and commercial properties for clients in
Australia and internationally.
TRIO CAPITAL: ASIC Issues Update on Trio Investigation
------------------------------------------------------
Australian Securities and Investment Commission on October 29
provided an update on its investigation into the collapse of Trio
Capital. This follows Tony Maher (formerly known as Paul Gresham),
pleading guilty to 20 criminal charges including making false or
misleading statements to obtain a financial advantage relating to
one of the Trio funds, the ARP Growth Fund.
Trio investigation - outcomes
Since ASIC's investigation started on Oct. 2, 2009, more than 11
people have either been jailed, banned from providing financial
services, disqualified from managing companies or have agreed to
remove themselves from the financial services industry for a total
of more than 50 years.
ASIC Commissioner John Price said: 'ASIC enforcement action in
relation to the Trio matter demonstrates that ASIC will hold
gatekeepers to account where their conduct falls below the
required standard. Directors, company officers, auditors,
investment advisers, and financial planners play a key role in
ensuring that Australia's markets are fair and efficient. ASIC
will continue to take enforcement action against gatekeepers where
they fail to perform their duties with sufficient honesty,
diligence, competence and independence.'
ASIC's enforcement outcomes include:
* Shawn Richard, former investment manager of the Astarra
Strategic Fund (ASF), being sentenced to 3 years and 9
months jail with a minimum of 2 years and 6 months. ASF
was one of the managed investment schemes operated by
Trio. Mr Richard pleaded guilty to two offences involving
dishonest conduct in carrying on a financial services
business. Mr Richard also admitted to making a false
statement about a financial product.
* The permanent banning of Eugene Liu, ASF's chief investment
strategist, from providing financial services.
* Enforceable undertakings (EU) with five former Trio
directors where they agreed not to be involved in the
financial services industry or manage a company for
between two and 15 years. The former directors are
Natasha Beck, Keith Finkelde, David O'Bryen, David
Andrews and Rex Phillpott.
* An EU with planning firm Kilara Financial Solutions to
address compliance issues.
* An EU with Tony Maher to never provide financial services
or manage a company.
* Suspending the licence of financial planners Seagrims,
with this licence then being cancelled at the company's
request on Sept. 19, 2011.
* Banning Seagrims directors Peter Seagrim and Anne-Marie
Seagrim for three years, with the Administrative Appeals
Tribunal subsequently cutting the ban to 6 months; and
* An EU with former ASF auditor Timothy Frazer, providing
he would not act as a registered company auditor for
three years.
ARP Growth Fund
As noted above, Mr Maher has pleaded guilty on October 29 in the
Downing Centre Local Court in Sydney to 20 criminal charges
including publishing false or misleading statements to obtain a
financial advantage relating to one of the Trio managed investment
schemes.
Lost funds - Liquidator's reports
As part of finalising the Trio liquidation, liquidators from PPB
Advisory intend to release reports for ASF and ARP, and other Trio
investments. These reports will provide further information about
what happened to investors' funds.
Jack Flader Jr
Jack Flader Jr is allegedly the Trio Group's ultimate controller.
Since ASIC's Trio update of June 5, 2012,, ASIC, the Australian
Federal Police (AFP) and our overseas regulatory counterparts have
sought to obtain extra evidence to establish that Mr Flader
breached Australian law. However, despite this work, there is
insufficient evidence to prove Mr. Flader breached Australian law.
In the circumstances, ASIC is now finalising its investigation
into Mr. Flader.
Efforts to combat investment fraud
In response to a Parliamentary Joint Committee report ASIC and the
Australian Crime Commission, set up a joint-agency initiative
including the AFP, the Australian Prudential Regulatory Authority
and the Australian Taxation Office, to identify and combat serious
organised investment fraud.
ASIC also continues to work with international regulatory agencies
to more broadly identify persons of interest and risks to
Australia's financial markets.
Forward plan
In 2010, ASIC also set out a forward plan to improve the
gatekeeper conduct in this area. Following this forward plan, ASIC
has:
* increased the financial requirements that apply to managed
investment schemes
* issued regulatory guidance to improve disclosures made by
hedge funds
* strengthened guidance applying to research houses
* reviewed the custodian industry and Consultation Paper 197
Holding Scheme Assets and Other Assets (CP 197). ASIC is
currently finalising its regulatory guidance in light of
the response to the consultation paper)), and
* reviewed compliance plans for managed investment schemes.
Ongoing actions from this plan includes:
* reviewing dispute resolution and compensation schemes
* increased surveillance of hedge funds and financial
Advisers
* continual improvement of ASIC's MoneySmart financial
literacy website, and
* ongoing improvement and review of the existing strong
working relationships with other regulators
About Trio Capital
Trio Capital was formerly the trustee of five superannuation
entities and the responsible entity for 25 managed investment
schemes, including the Astarra Strategic Fund. The Astarra
Strategic Fund was a fund of hedge funds, which in December 2009
had reported assets of $125 million. Investors in the Astarra
Strategic Fund included several superannuation trusts managed by
Trio Capital as well as self-managed superannuation funds and
direct investors.
The Astarra Strategic Fund invested in several questionable
overseas hedge funds, mostly based in the Caribbean. The
Australian Securities & Investments Commission commenced an
investigation into Trio Capital in October 2009 over concerns
about the legitimacy of its investments. Trio Capital was placed
into administration on Dec. 16, 2009, and on April 16, 2010, the
NSW Supreme Court ordered that the Astarra Strategic Fund be
wound up. Since this time the liquidator of Trio Capital has
been unable to recover the vast majority of the investments made
by the Astarra Strategic Fund.
Investigations into Trio Capital are continuing by both ASIC and
the Australian Prudential Regulation Authority.
TRIO CAPITAL: Ex-Manager Pleads Guilty To Making False Statements
-----------------------------------------------------------------
A former investment manager with links to the failed firm Trio
Capital on Oct. 29 pleaded guilty to 20 criminal charges including
making false or misleading statements resulting in his business
receiving more than $500,000 in payments.
Appearing at the Downing Centre Local Court in Sydney, Tony Maher,
who changed his name from Paul Gresham, admitted to making the
statements when recommending investments for the Trio-run ARP
Growth Fund (ARP).
At the time he owned and controlled PST Management Pty Ltd (PST),
the company that acted as the investment manager of ARP.
Mr. Maher, 60, of Katoomba, faces a maximum penalty of five years
in jail and/or a fine of $110,000 for each offence.
Mr. Maher admitted:
-- On four occasions between Sept. 5, 2007 and Nov. 29, 2007,
with the intent to obtain a financial advantage for PST,
namely investment management fees, giving to Trio a
valuation of ARP's shares in a British Virgin Island
company known as Professional Pensions ARP Limited (PPARP)
which he knew to be false and misleading. As a consequence,
Trio made four payments to PST totaling $218,294.06, of
which $147,945.78 was attributable to the false or
misleading statements.
-- On 16 occasions between July 28, 2008, and Oct. 31, 2009,
with the intent to obtain a financial advantage for PST,
namely investment management fees, concurred in publishing
to Trio valuations of ARP investments in PPARP which he
knew to be false or misleading. As a consequence, Trio made
12 payments to PST totaling $564,991.06, of which
$435,229.12 was attributable to the false or misleading
statements.
Mr. Maher was released on conditional bail and the matter will
return to the Sydney District Court on Nov. 8, 2013, for
sentencing.
The Commonwealth Director of Public Prosecutions is prosecuting
this matter.
The criminal charges against Mr Maher is ASIC's latest action
since the collapse of the fund manager in December 2009. ASIC's
investigation has led to 11 people being either jailed, banned,
disqualified or removed from the industry for a total of more than
50 years.
On Oct. 29, 2013, ASIC released an update into its Trio
investigation.
In February 2012, ASIC accepted an enforceable undertaking (EU)
from Mr Maher, preventing him from working in the Australian
financial services industry or managing a corporation.
At the time of the offences Trio was then known as Astarra
Capital.
About Trio Capital
Trio Capital was formerly the trustee of five superannuation
entities and the responsible entity for 25 managed investment
schemes, including the Astarra Strategic Fund. The Astarra
Strategic Fund was a fund of hedge funds, which in December 2009
had reported assets of $125 million. Investors in the Astarra
Strategic Fund included several superannuation trusts managed by
Trio Capital as well as self-managed superannuation funds and
direct investors.
The Astarra Strategic Fund invested in several questionable
overseas hedge funds, mostly based in the Caribbean. The
Australian Securities & Investments Commission commenced an
investigation into Trio Capital in October 2009 over concerns
about the legitimacy of its investments. Trio Capital was placed
into administration on Dec. 16, 2009, and on April 16, 2010, the
NSW Supreme Court ordered that the Astarra Strategic Fund be
wound up. Since this time the liquidator of Trio Capital has
been unable to recover the vast majority of the investments made
by the Astarra Strategic Fund.
Investigations into Trio Capital are continuing by both ASIC and
the Australian Prudential Regulation Authority.
=========
C H I N A
=========
WINSWAY COKING: S&P Raises CCR to 'CCC'; Outlook Negative
---------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Winsway Coking Coal Holdings Ltd. to
'CCC' from 'SD' (selective default). The outlook is negative. At
the same time, S&P raised the issue rating on the company's
outstanding US$309 million 8.5% senior unsecured notes due 2016 to
'CCC-' from 'D'. S&P also raised its long-term Greater China
regional scale rating on Winsway to 'cnCCC' from 'SD' and on the
notes to 'cnCCC-' from 'D'. Winsway is a China-based coking coal
supply and logistics provider.
"We raised the ratings because, under our criteria, Winsway is no
longer in default following the completed buyback of about 33.35%
of its senior unsecured notes," said Standard & Poor's credit
analyst Huma Shi.
S&P's upgrade also takes into account the company's financial risk
profile following the buyback, which it made at a substantial
discount to the face value (or par) and funded through internal
cash. In addition, S&P factored in Winsway's available cash, its
ability to service its outstanding debt, and operating costs for
the next 12 months.
The rating reflects the company's "vulnerable" business risk
profile and "highly leveraged" financial risk profile.
"Unless the business and financial environment improves
materially, the company will face difficulties in meeting its
obligations over the next 12 months. We still see a one-in-two
likelihood of default," said Ms. Shi.
"In our base-case scenario, we anticipate that Winsway will
continue to face tough operating conditions, particularly given
weak demand and the low pricing of coking coal. We expect the
company's Canadian coal mine operations, Grand Cache Corp. (GCC),
to continue to make losses, given high operating costs and low
sales volumes. This acquired upstream subsidiary has become a
stumbling block for Winsway as the company struggles to revert to
its original asset-light business model of back-to-back coal
trading contracts with customers," S&P noted.
Winsway's recovery prospects appear weak for the next 12 months.
The company's financial performance in the first six months of
2013 was worse than S&P's base-case expectation. S&P expects
Winsway to make further losses and generate negative cash flows in
2013. The company's highly leveraged capital structure is
unlikely to improve over the next 12 months. However, for the
next six to 12 months, Winsway's cash on hand of about Hong Kong
dollar (HK$) 1.55 billion should cover the interest expenses on
its outstanding senior notes and its operating expenses.
The issue rating is a notch lower than the corporate credit rating
to reflect S&P's opinion that offshore noteholders would be
materially disadvantaged, compared with onshore creditors, in the
event of default. The company's ratio of priority debt to total
assets has exceeded S&P's threshold of 15% for speculative-grade
companies. S&P anticipates that this ratio will remain above its
threshold for the next 12 months.
"The negative outlook reflects Winsway's deteriorating liquidity
position and a risk that banks may not continue to be willing to
renew working capital loan facilities as they come due. The
negative outlook also reflects our expectation that Winsway's
profitability and financial strength will remain weak for the
rating over the next 12 months," said Ms. Shi.
S&P could lower the rating if Winsway's ability to raise short-
term financing to support its coal trading business further
weakens, and S&P believes that the company can no longer use cash
to service its debt within the next six months.
S&P could revise the outlook to stable if Winsway's operating
performance improves over the next 12 months, such that EBITDA
turns positive.
=========
I N D I A
=========
AVASARALA TECH: ICRA Reaffirms D Ratings on INR371.65cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of Avasarala Technologies
Limited for fund based working capital limits of INR142.70 crore
(enhanced from 125.00 crore) and term loans of INR83.31 crore
(enhanced from 44.36 crore) at '[ICRA]D'. ICRA has also reaffirmed
the short term rating for INR145.64 crore (reduced from 167.10
crore) non-fund based working capital limits at '[ICRA]D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Working 142.70 [ICRA]D Reaffirmed
Capital Limits
Non Fund Based 145.64 [ICRA]D Reaffirmed
Limits
Term Loan 83.31 [ICRA]D Reaffirmed
The rating takes into account continued delays in debt servicing
by the company on account of strained liquidity amid high working
capital intensity of operations because of the long duration of
contracts and back-ended billing for the same. ATL's substantial
working capital requirement is largely funded through borrowings
resulting in high levels of leveraging and interest cost; thereby
restraining the net profitability despite strong operating
profitability in the range of 25-30%. While ATL has strong
technical capabilities and has an established presence as a
supplier of specialized components, the slowdown witnessed within
the nuclear industry given the fallout of the Fukushima disaster
was visible in de-growth experienced by the nuclear power division
of the company over the last two fiscals. Going forward, the
company is making efforts to increase its revenue share from the
factory automation division given the relatively less lumpy nature
of cash flows of this segment which could lead to easing of
liquidity pressure.
ATL was incorporated in 1985 and is promoted by Mr. Mangaapathi
Rao & Mr. T T Mani. The company is primarily engaged in the
manufacture of components for the nuclear and space industries and
process automation within its factory automation division. The
company operates through four plants spread across Bangalore &
Pondicherry. ATL's nuclear/space division constituted about 35% of
its 2012-13 revenues with the factory automation division
accounting for ~60% of its revenues. Moreover, ATL also
manufactures anaesthesia machines and ventilators within its
healthcare division which accounted for about 5% of its 2012-13
revenues. M/s PineBridge Investments holds a 45% stake in ATL; the
rest of ATL's shares are held by the promoters and their
relatives.
ATL has a fully owned subsidiary; Avasarala INC, located in
Chicago which markets ATL's products in the United States.
Recent Results
For financial year 2012-13, the company generated net profit of
INR9.09 crore on operating income of INR203.28 crore as compared
to a PAT (Profit After Tax) of INR4.77 crore on an operating
income of INR181.28 crore for FY12.
BERICAP INDIA: ICRA Reaffirms 'BB' Rating on INR0.68cr Loans
------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB' rating with stable outlook to
the INR0.68 crore term loan (reduced from INR1.90 crore) and
INR14.00 crore fund based facilities (reduced from INR23.90 crore)
of Bericap India Private Limited. ICRA has also reaffirmed
'[ICRA]A4' rating to the INR14.00 crore (reduced from INR23.90)
crore fund based and non fund based facilities of BIPL fully
interchangeable with the long term fund based facilities. The
total utilization for fund based and non fund based working
capital facilities should not exceed INR 14.00 crore.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 0.68 [ICRA]BB (stable) reaffirmed
Fund Based/Non 14.00 [ICRA]BB (stable)/A4 reaffirmed
Fund based
The rating reaffirmation takes into account strong financial and
technical support from the parent Bericap Gmbh, strong position of
parent in global plastic closure market, favorable growth drivers
in Indian market for plastic closures, established business
relationship with reputed clients and wide presence in Northern
and Western India with efforts to diversify in southern India as
well. ICRA also takes note of the improvement in the topline on
back of additional orders received by the company in the current
year. The ratings however remain constrained by BIPL's significant
accumulated losses, weak financial indicators, modest scale of
operations, and the competitive environment prevailing in the
industry. The company continues to report net losses with
depreciation in rupee and high landed prices of resin accentuating
losses further.
BIPL was incorporated in 2001 as a JV between Essel Propack and
Germany based Bericap GmBH. Bericap subsequently bought over stake
from Essel Propack with BIPL becoming wholly owned subsidiary of
BHG in 2009.
BIPL is in the business of manufacturing plastic closures for PET
bottles used in Carbonated Soft Drinks (CSD), Fruit Juices,
Processed Food, Edible oil, Lube oil, Paints and household
chemicals. BIPL started production of closures at Murbad Dist-
Thane (Maharashtra) in 2001 and in 2007 the manufacturing facility
was shifted to Talegaon MIDC in Pune district. BIPL have an
installed capacity of 1200 million closures p.a.
CASTLE LIQUORS: CRISIL Ups Ratings on INR60MM Loans to 'BB+'
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Castle Liquors Pvt Ltd to 'CRISIL BB+/Stable' from 'CRISIL
BB/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL BB+/Stable (Upgraded
from 'CRISIL BB/Stable')
Proposed Long-Term 5 CRISIL BB+/Stable (Upgraded
Bank Loan Facility from 'CRISIL BB/Stable')
The upgrade in rating reflects a sharp growth in CLPL's scale of
operations and accruals while maintaining its financial risk
profile through a tight control on the working capital cycle.
CLPL's revenue increased more than 80 per cent year-on-year in
2012-13 (refers to financial year, April 1 to March 31) to INR1.7
billion and is expected to grow further by more than 30 per cent
in the current financial year on the back of steady demand for
brands that the company distributes. A tight control on the
working capital cycle reflected in gross current assets of less
than 40 days and credit from the principal supplier ensures that
the company's incremental working capital requirements arising
from the sharp growth can be met largely through internal sources;
consequently the gearing has remained comfortable at 1.6 times as
on March 31, 2013. CRISIL believes that continued efficient
working capital management will be crucial in maintaining CLPL's
improved liquidity and financial risk profile over the medium
term.
The ratings continue to reflect CLPL's efficient working capital
management and established market presence of the brands of its
principal suppliers in the liquor distribution and wholesale
business. These rating strengths are partially offset by CLPL's
below-average financial risk profile marked by modest net worth,
aggressive capital structure, and adequate debt protection
metrics.
Outlook: Stable
CRISIL believes that CLPL will continue to benefit over the medium
term from the established market presence of the brands that the
company distributes. The outlook may be revised to 'Positive' in
case of significant improvement in CLPL's cash accruals or
infusion of capital by promoters, leading to substantial
improvement in its liquidity and financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
pressure on liquidity owing to lower-than-expected cash accruals
and stretch in working capital cycle, or CLPL undertakes a higher-
than-expected debt-funded capital expenditure that results in
deterioration in financial risk profile.
Incorporated in 2003 by Kolkata (West Bengal)-based Gon family,
CLPL is a distributor of Allied Blenders and Distillers Pvt Ltd
(80 per cent), Radico Khaitan, Pernod Ricard India Pvt Ltd, and
Beam Global Spirits and Wine Inc for Indian made foreign liquor
and of Bhutan Brewery Pvt Ltd for beer in Kolkata, Howrah, Nadia,
North and South 24 Paragana and Hooghly district (all in West
Bengal).
CHAITANYA INDIA: ICRA Withdraws 'BB-' Rating on INR15cr Loan
-------------------------------------------------------------
ICRA has withdrawn the '[ICRA]BB-' rating with a Stable outlook
assigned to the INR15 crore Proposed Lines of Credit from banks of
Chaitanya India Fin Credit Private Limited, as the company has not
raised funds against the rated instrument. There is no amount
outstanding against the rated instrument.
CLASSIC BOTTLE: CRISIL Reaffirms 'B' Ratings on INR250MM Loans
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Classic Bottle
Caps Pvt Ltd continues to reflect the vulnerability of CBCPL's
operating margin to increase in raw material prices and its
working-capital-intensive nature of operations. These rating
weaknesses are partially offset by the company's diversified
customer base and its established presence in the packaging
industry along with experienced management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 28.1 CRISIL B/Stable (Reaffirmed)
Term Loan
Term Loan 8.4 CRISIL B/Stable (Reaffirmed)
Cash Credit 190.0 CRISIL B/Stable (Reaffirmed)
Proposed Long-Term 23.5 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that CBCPL will maintain its credit risk profile
on the back of its long-standing presence in the packaging
industry and established customer base. The outlook may be revised
to 'Positive' if the company achieves higher-than-expected
revenues while maintaining the profitability, along with
improvement in working capital. Conversely, the outlook may be
revised to 'Negative' in case CBCPL's revenues decline or its
profitability deteriorates or the company undertakes any larger-
than-expected debt-funded capital expenditure leading to
deterioration in the financial risk profile.
CBCPL is a private limited company that manufactures and exports
aluminium closures, poly vinyl chloride (PVC) shrink capsules, and
flexible packaging products. The company was formed as a
partnership firm, Classic Bottle Caps, in 1989 by key promoters
Mr. Sanjeev Seth and Mrs. Asha Rani Motwani. The firm was
reconstituted as a private limited company in 2000. It caters to
various industries such as liquor, beverages, pharmaceuticals, and
fast-moving consumer goods products. The company has manufacturing
facilities in Palwal and Faridabad (both in Haryana).
CBCPL reported a profit after tax (PAT) of INR20 million on net
sales of INR615 million for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR15 million on net sales
of INR 416 million for 2011-12.
CONSTANT ENGINEERING: CARE Places 'B+' Rating on INR11.75cr Loans
-----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Constant Engineering Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.75 CARE B+ Assigned
Facilities
Short-term Bank 6.15 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Constant
Engineering Private Limited are primarily constrained on account
of its small scale of operations, weak financial risk profile
marked by a stagnant turnover, modest profitability, leveraged
capital structure, weak debt coverage and moderate liquidity
indicators. The ratings are further constrained due to limited
revenue visibility in the construction business division due to
the small order book position, stabilization risk associated with
the recently completed debt-funded project and business risk
present in the trading and construction business.
The ratings, however, favorably take into account the vast
experience of the promoters in the civil construction work and
established relationship with reputed clientele which partially
mitigates high customer concentration risk.
The ability to increase the scale of operations along with an
increase in the order book position amidst the competitive nature
of the industry along with improvement in the profitability,
solvency position and collection period are the key rating
sensitivities.
Promoted by Mr Davis Antony Thakolkkaran, CEPL was incorporated in
June 2005 by taking over the existing business operations of a
proprietorship concern, which was formed by the Thakolkkaran
family in 1987. CEPL is engaged in the execution of construction
projects like crosscountry piping, steel fabrication and erection
projects, industrial structures, fabrication of tanks &
vessels, equipments shot blasting & painting and other civil
structural work projects. The revenue derived from these
construction activities stood at 30% of the total operating income
(TOI) during FY13 (Provisional; refers to the period April 01 to
March 31). The company is also engaged in the trading of
consumables goods, electrodes, abrasives, industrial gases, power
tools, etc, which formed 69% of TOI during FY13 and the balance 1%
revenue was derived through leasing of construction equipments.
The company recently completed the capex, wherein CEPL installed
machineries to manufacture industrial gases like oxygen, argon,
nitrogen, etc. CEPL is an ISO 9001:2008 certified company and has
successfully executed various small and mid-sized fabrication
projects in the field of chemical and petroleum industry.
As against a net profit of INR0.56 crore on a total operating
income (TOI) of INR15.96 crore in FY12, CEPL reported a net loss
of INR0.03 crore on a TOI of INR14.57 crore during FY13.
ELDER PHARMACEUTICALS: CARE Reaffirms D Rating on INR184.3cr Loan
-----------------------------------------------------------------
CARE revises/withdrawn the ratings assigned to
facilities/instruments of Elder Pharmaceuticals Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 215.55 CARE D Revised from CARE B
Facilities
(Term Loan)
Long term/Short 301.00 CARE D/CARE D Revised from
Term Bank facilities CARE B/ A4
(Fund Based)
Short term Bank 22.45 CARE D Revised from CARE A4
Facilities
(Term Loan)
Short Term bank 95.00 CARE D Revised from CARE A4
Facilities
(Non-Fund Based)
Long term Non- 184.03 CARE D Reaffirmed
Convertible
Debentures
(Tranche I & II)
Long term Non- 70.00 CARE D Revised from CARE B
Convertible
Debentures
(Tranche III)
Short Term Bank 94.00 - Withdrawal
Facilities (Non
fund based - SBLC)
Commercial Paper 50.00 - Withdrawal
(Standalone)
Commercial Paper 105.00 - Withdrawal
(Carved out of
WC limits)
Rating Rationale
The rating factors in ongoing delays in servicing the interest and
repayment obligations in Bank Facilities and NCDs of Elder
Pharmaceuticals Ltd's. Additionally, the company's liquidity
position remains susceptible due to full utilization of working
capital borrowings.
Elder Pharmaceuticals Ltd, promoted by Mr Jagdish Saxena in 1983,
is engaged in the manufacturing and marketing of pharmaceutical
formulations, API/bulk drugs, and distribution of cosmeceutical
products. The company has presence in niche therapeutic segments
such as women healthcare, wound care and pain management,
Nutraceuticals and lifestyle disease care.
EPL manufactures and markets its own formulation products as well
as in-licensed products. It has six manufacturing facilities and
strategic alliances with around 24 international innovator
companies.
During FY13 (refers to the period between April 1, 2012 to
June 30, 2013), EPL reported a PAT of INR93.74 crore on a total
income of INR 1,254.79 crore as compared to a PAT of INR84.16
crore on a total income of INR1,005.26 crore in FY12 (April 1,
2011 to March 31, 2012).
EXULT LOGISTICS: CRISIL Cuts Ratings on INR260MM Loans to 'BB+'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Exult Logistics Private Limited (Exult; part of Ideal Movers
group) to 'CRISIL BB+/Stable' from 'CRISIL BBB-/Negative'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150.0 CRISIL BB+/Stable (Downgraded
from 'CRISIL BBB-/Negative')
Term Loan 110.0 CRISIL BB+ /Stable (Downgraded
from 'CRISIL BBB-/Negative')
The downgrade reflects continued stretch in Ideal Movers group's
financial and liquidity risk profiles, driven by a stretched
receivable cycle. The average debtors have increased to an
estimated 175 days as on August 31, 2013 from around 100 days
historically, with a significant amount outstanding for more than
120 days from a major customer. Stretch in liquidity profile is
also reflected in the average utilisation for the group's fund
based working capital requirements increasing from 77 per cent in
the one year period ending February to over 90% in the past six
months through August 2013. High dependence on debt to fund its
working capital requirements and capex of INR 4.3 billion
undertaken in the past three years has meant that the group's
capital structure has remained below average. The group's gearing
(after adjusting for INR2 billion of unsecured loans from
promoters as neither debt nor equity) remained at elevated level
of 10.5 times (against earlier estimates of just over 8 times) by
the end of March 2013. Group's ability to reduce its receivable
cycle on a sustainable basis and improve its capital structure
will remain a key rating driver going forward.
The ratings continue to reflect Ideal Movers group's moderate
business risk profile, marked by transformation into an asset-
heavy business model, leading to improved profitability, and
established customer relationships developed under the aegis of a
strong management. These rating strengths are partially offset by
customer concentration in revenues, large working capital
requirements, and an aggressive capital structure.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Ideal Movers Private Limited (IMPL) and
Exult Logistics Pvt Ltd (Exult Logistics), together referred to as
the Ideal Movers group. This is because the two companies are
under the same management and have fungible cash flows. Besides,
the two companies have high operational linkages as all the
vehicles owned by Exult Logistics are leased to IMPL.
Outlook: Stable
CRISIL believes that the Ideal Movers group's liquidity will
remain constrained over the medium term because of large working
capital requirements and debt obligations vis-…-vis cash accruals.
The outlook may be revised to 'Positive' if the group is able to
reduce its working capital cycle on a sustainable basis and
improves its capital structure. Conversely, the outlook may be
revised to 'Negative' if further stretch in group's collection
period results in further pressure on liquidity or if sluggish
economic scenario results in a decline in the company's turnover
or margins from the current level.
Set up in 1995, IMPL commenced operations in 2000 with its
transportation business. IMPL is mainly involved in the
transportation of steel and related material. Exult Logistics was
set up in 2005; it leases its vehicles to IMPL and undertakes the
loading and unloading of material for IMPL and other customers;
this material is then transported by IMPL. The companies are a
part of the Kolkata-based Ideal group headed by group chairman Mr.
Srawan Kumar Himatsingka, assisted by his son, Mr. Nakul
Himatsingka.
IMPL reported a profit after tax (PAT) of INR29.7 million on net
sales of INR6.1 billion for 2011-12, as against a PAT of INR17.7
million on net sales of INR5.1 billion for 2010-11.
Exult Logistics reported a net profit of INR19.7 million on net
sales of INR 1413 million for 2012-13, as against net loss of
INR57.4 million on net sales of INR483.0 million for 2011-12.
FACOR STEELS: ICRA Reaffirms 'D' Ratings on INR78.14cr Loans
------------------------------------------------------------
ICRA has reaffirmed the rating assigned to the INR78.14 crore fund
and non-fund based limits of FACOR Steels Limited at '[ICRA]D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Facilities 35.78 [ICRA]D (Reaffirmed)
Non-Fund Based 42.36 [ICRA]D (Reaffirmed)
Facilities
The rating reflects continued delays by FSL in servicing of its
debt obligation. ICRA notes that due to the continued losses
during FY13 as well, the company had applied for Corporate Debt
Restructuring (CDR) in January 2013 and the same got approved in
April 2013 by its bankers. Post that, the manufacturing operations
have restarted in August 2013. Going forward, FSL's ability to
service the debt obligation in time, improving its profitability
and capital structure will be amongst the key rating sensitivity
factors.
Facor Steels Limited was incorporated in May 2004, as a part of a
restructuring scheme sanctioned to Ferro Alloys Corporation
Limited. FACOR was incorporated in 1957 by Mr. Uma Shankar Agarwal
& the Saraf family. As a part of the restructuring exercise
initiated in April 2004, the company was trifurcated into three
separate companies namely FACOR, FSL and Facor Alloys Limited
(FAL) based on division of operations and manufacturing
facilities. FSL is a company involved in manufacturing steel
products from its unit located in Nagpur (Maharashtra). The
company manufactures stainless steel as well as alloy/carbon steel
products, which largely caters to the requirement of automobile
component-makers, forgers and Bright bar exporters.
Recent Results:
In FY12, the company reported a net loss of INR 8.63 crore on a
turnover of INR 308.60 crore. Further, in FY13, FSL reported a net
loss of INR 24.73 crore on a turnover of INR 246.06 crore.
GODAVARI KHORE: CRISIL Reaffirms 'D' Ratings on INR120MM Loans
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Godavari Khore
Namdeoraoji Parjane Patil Taluka Sahakari Dudh Utpadak Sangh Ltd
continues to reflect instances of delay by Godavari in servicing
its term debt; the delays have been caused by the company's weak
liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65.0 CRISIL D (Reaffirmed)
Term Loan 23.0 CRISIL D (Reaffirmed)
Proposed Long-Term 32.0 CRISIL D (Reaffirmed)
Bank Loan Facility
Godavari also has a below-average financial risk profile, marked
by small net worth, high gearing and modest debt protection
metrics; and exposure to supply constraints and epidemic-related
factors. These rating weaknesses are partially offset by the
extensive experience of Godavari's promoters in the milk
processing industry.
Update
Godavari's sales were marginally higher in 2012-13 (refers to
financial year, April 1 to March 31) than sales in 2011-12;
however, the company's sales were lower than CRISIL's
expectations. For the six months through September 2013,
Godavari's revenues were estimated at INR900 million. The
operating profitability of the company was estimated at 3.9 per
cent during the same period. Quick realization of receivables,
extended credit from suppliers and high reliance on external debt
resulted in low gross current assets (GCAs) at 31 days in 2012-13.
The company's financial risk profile has remained below-average
marked by its small net worth, high gearing and modest debt
protection metrics. Godavari's gearing was high estimated at 2.2
times as on March 31, 2013 mainly because of high external
borrowings to meet its working capital requirements. The company's
debt protection metrics were modest with net cash accruals to
total debt (NCATD) and interest coverage ratios estimated at 0.63
times and 1.9 times respectively for 2012-13. Godavari's liquidity
has remained weak, with full utilisation of its working capital
limits.
Godavari, on provisional basis has reported a profit after tax
(PAT) of INR0.58 million on net sales of INR1.16 billion for 2012-
13 and a PAT of INR5.5 million on net sales of INR1.13 billion for
2011-12.
Incorporated in 1976, Godavari is promoted by Mr. Namdeo Rao
Rakhmaaji Parjane Anna of Ahmednagar (Maharashtra). Godavari has
set up a milk processing unit in Ahmednagar. The company mainly
processes milk and also manufactures dairy products, such as ghee,
shrikhand, and paneer.
HITECH PRINT: CARE Lowers Ratings on INR18.88cr Loans to 'D'
------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Hitech
Print Systems Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.38 CARE D Revised from
Facilities CARE BB (SO)
Short-term Bank 3.50 CARE D Revised from
Facilities CARE A4 (SO)
Rating Rationale
The revision in the ratings takes into account the recent delays
in debt servicing.
Incorporated in 1986, Hitech Print Systems Limited is an ISO 9001-
2008 certified entity (Quality Certification) engaged in the
printing business at its manufacturing facility (capacity: 37.6
MTPA) located at Peddavutapalli Village in Krishna District. The
company offers a broad range of printed products in the form of
high security documents like cheque books, interest and dividend
warrants, utility bills, OMR sheets and question papers for
educational institutions. HPSL is also involved in printing
customized business stationary like gift vouchers, food vouchers,
onserts for newspapers, etc. The company is approved by Indian
Banking Association and is also a member of Print Services
Distribution Association.
HPSL is a wholly-owned subsidiary of Hyderabad-based Anjani
Portland Cement Ltd (rated CARE BB/CAREA4).
During FY13 (refers to the period April 01 to March 31), HPSL
posted a PBILDT of INR5.86 crore (FY12: INR5.26 crore) and PAT
(after deferred tax) of INR0.72 crore (FY12: INR0.25 crore) on a
total operating income of INR38.26 crore (FY12: INR32.46 crore).
As per the unaudited results, during Q1FY14, HPSL posted PBILDT of
INR1.24 crore and PAT of INR0.09 crore on a total operating income
of INR9.78 crore.
HITEN FASTENERS: ICRA Assigns 'BB' Ratings on INR14.92cr Loans
--------------------------------------------------------------
ICRA has assigned the long-term rating of '[ICRA]BB' to the
INR2.92 Crore term loan facilities and INR12.00 Crore fund based
facilities of Hiten Fasteners Private Limited. The outlook on the
long-term rating is Stable. ICRA has also assigned the short-term
rating of '[ICRA]A4' to the INR8.00 non-fund based facilities of
Hiten. ICRA has assigned ratings of [ICRA]BB(Stable)/[ICRA]A4 for
the INR4.08 crore proposed facilities of Hiten.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 2.92 [ICRA]BB (Stable)/Assigned
Long-term fund based
Facilities 12.00 [ICRA]BB (Stable)/Assigned
Short-term fund based
Facilities 8.00 [ICRA]A4/Assigned
Proposed facilities 4.08 [ICRA]BB(Stable)/[ICRA]A/
Assigned
The assigned ratings factor in the experience of the Company in
supplying fasteners to diverse industries and their experience
with a wide customer base. While there has been slowdown in most
of the customer industries such as commercial vehicles, capital
goods, construction equipments, and windmills, Hiten's revenue
levels are supported by favourable prospects for metro rail
segment. In the metro rail segment, the company is engaged in
license manufacturing of fasteners for Vossloh AG, a renowned
global player in metro rail fastening systems industry. Further,
Vossloh AG's Joint Venture in India, Patil-Vossloh Rail Systems
Private Limited supplies to most of the metro rail projects in
India and by virtue of being a license manufacturer Hiten's order
prospects appear bright.
The ratings are however constrained by the relatively small scale
of operations in an intensively competitive industry, which limits
the company's bargaining power and results in lower margin and
higher receivable days, slowdown in major customer segments, which
has moderated volumes. While the company's revenue prospects
appear bright in the metro rail segment, the dependence exposes
the company to project specific risks in the segment. These apart,
thin accruals, high working capital intensity, owing to high
debtor days and high inventory days have led to a moderate
coverage indicators and liquidity profile.
Hiten Fasteners Private Limited, established in 1983, is a
manufacturer of high tensile fasteners for use in Automobile,
heavy engineering, industrial machinery, railway infrastructure,
and windmills among other industries. The Company's customers
include Bharat Heavy Engineering Limited, Bharat Earth Moing
Limited, and industrial machinery, in the public sector and Ashok
Leyland Limited, Larsen & Toubro Limited, Gamesa Corporaci¢n,
Shriram group, and Vossloh AG in the private sector.
Hiten has three plants, with a total installed capacity of 4320
tonnes, located in Bangalore, Maddur and Gadag. Hiten's plant
located in Bangalore, oldest plant, caters to Hydroelectric sector
and earth moving and construction equipment sector. Maddur plant,
started in 1993, has in-house testing facilities and surface
finishing facilities and caters to wind turbine generator
manufacturers. In the Gadag plant, the Company produces rail-
anchoring fasteners for Metro rail projects.
The promoters of the company have also incorporated another
entity, Karnataka OEM & Spares Private Limited, which is located
in Gadag and is primarily engaged in job work for Hiten. Hiten has
also installed two windmills (with a capacity of 1.0 MW) in Gadag
(Karnataka) and Tirunelveli (Tamil nadu), towards reduction of
power costs.
JAYKA JANSAHAYAK: CARE Reaffirms BB- Rating on INR3.43cr LT Loans
-----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of Jayka
Jansahayak Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.43 CARE BB- Reaffirmed
Facilities
Rating Rationale
The rating assigned to the bank facilities of Jayka Jansahayak
Trust continue to remain constrained by its relatively small scale
of operations, the increasing level of competition from more
renowned institutes in and around Gujarat and the risk arising due
to the requirement of regulatory approvals and accreditations for
running various technical courses. The ratings also factors in the
risk associated with the timely completion of the project within
the cost parameters.
The rating, however, continues to favorably factor in the long
experience of the trustees in the field of education, increased
demand for quality technical & management education, moderate
enrolment ratio and sharp revenue growth over the past two years
ending FY13 (refers to the period April 1 to March 31).
JJT's ability to attract and enroll new students and experienced
faculty to its various institutes as projected, in order to
achieve the envisaged operating and financial performance is the
key rating sensitivity.
JJT was established on April 08, 2002, by Mr B J Pandya. It is
registered under the Bombay Public Trust Act, 1950 and the
Societies Registration Act, 1860. The founder and the president of
the Trust, Mr B J Pandya is a former senate & syndicate member of
the Gujarat University and a member of Savli Taluka Kelavni
Mandal. JJT is involved in providing technical education since
FY10 and is running three institutes, namely, SB Polytechnic
(SBP), KJ Institute of Engineering & Technology (KJIT) and SB
College of Computer Application & Management (SBCC) in Savli,
Gujarat. The courses offered by SBP and KJIT are approved by All
India Council of Technical Education (AICTE), while the courses
offered by SBCC are affiliated to Dr Baba Saheb Ambedkar Open
University.
As per the provisional results for FY13, JJT reported a total
income of INR13.65 crore (FY12: INR9.48 crore) and a surplus of
INR1.75 crore (FY12: INR0.11 crore).
JEWEL INTERNATIONAL: ICRA Suspends 'B' Rating on INR30.3cr Loans
----------------------------------------------------------------
ICRA has suspended the [ICRA]B/[ICRA]A4 ratings assigned to the
INR30.30 crore bank limits of Jewel International Private Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
JOYO PLASTIC: CARE Reaffirms 'BB-' Rating on INR8.47cr Loans
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of Joyo
Plastic.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.47 CARE BB- Reaffirmed
Facilities
Short-term Bank 1.70 CARE A4 Reaffirmed
Facilities
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of Joyo Plastic
continue to be constrained by the relatively small scale of
operations, low profitability, leveraged capital structure and
weak debt coverage indicators. The ratings further continue to be
constrained by the susceptibility of profitability margins to
volatile raw material prices along with operations of the firm in
a highly fragmented & competitive industry and the partnership
constitution of the entity.
The above constraints are partially offset by the strengths
derived from the experience of the partners in the plastic
industry along with an established client base, strong
distribution network and diversified product portfolio.
The ability of the firm to improve the overall financial risk
profile and efficiently manage working capital cycle amidst the
intense competition are the key rating sensitivities.
Established in 1984 by the Bafna family, Joyo Plastics (Joyo) is
engaged in the manufacturing of plastic moulded items. The firm
has a manufacturing facility in Daman with a total installed
capacity of 3,500 TPA with current capacity utilization of around
75%. The firm operates predominantly in the Indian market [export
forms only 3% of the total sales for FY13 (refers to the period
April 1 to March 31)] under the brand name of 'JOYO'.
The major raw materials used by Joyo are polypropylene (PP) &
polyphenylene ether (PPE), which are sourced from the local
markets.
During FY13 (refers to the period April 1 to March 31), Joyo
reported a total operating income of INR42.04 crore (up by 26%
vis-…-vis FY12) and PAT of INR0.12 crore (down by 44% vis-…-vis
FY12). Furthermore till HIFY14, the firm reported a total income
of INR30 crore.
KANAKADHARA VENTURES: ICRA Cuts Ratings on INR178cr Loans to 'BB'
-----------------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR38 crore
fund-based and INR140 crore (reduced from INR280 crore) non fund-
based bank facilities of Kanakadhara Ventures Private Limited to
'[ICRA]BB' from '[ICRA]BB+' earlier. The outlook on the long-term
rating is Stable. ICRA has also revised the short-term rating
assigned to the INR10 crore (reduced from INR40 crore) non fund-
based facilities of KVPL to '[ICRA]A4' from '[ICRA]A4+'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 38.00 Revised from [ICRA]BB+
to [ICRA]BB
Bank Guarantee 140.00 Revised from [ICRA]BB+
to [ICRA]BB
Letter of Credit 10.00 Revised from [ICRA]A4+
to [ICRA]A4
The rating revision factors in the stretched liquidity position of
KVPL on account of high outstanding receivables and accumulated
unbilled revenues resulting in frequent utilisation of adhoc
working capital limits and short term loans. The ratings are also
constrained by the low order inflow in the past 2 years, and the
significant client concentration in the company's order book. KVPL
has been engaged in turnkey projects involving the construction of
hospitals and medical colleges for a single client, Employee State
Insurance Company (ESIC). Project progress has been slow in the
past on account of pending approvals and changes in the project
scope, resulting in cost escalations. Delays in getting approvals
for cost escalations coupled with the long recovery period for
receivables has resulted in high working capital intensity for the
company. The rating also takes note of the company's plans to
foray into real estate development in Mumbai which exposes the
company's credit profile to market risk and funding risk for the
project. However the rating favourably factors in the removal of
major bottlenecks and the steady pace of execution for the on-
going projects, and the company's efforts to diversify its client
base by getting empanelled with TCIL (Telecommunications
Consultants India Limited) and EPIL. KVPL has large projects in
pipeline which if confirmed will provide revenue visibility over
medium term however the company's ability to manage the
considerable funding requirements and to scale up the execution
capabilities for these projects will be the key rating
sensitivity.
Kanakadhara Ventures Private Limited, a Hyderabad based
construction company, was established in the year 2005 by its
promoter Mr. P Venkateshwara Rao. The company started as a
residential construction and real estate company and then moved on
to civil construction. The company is currently executing various
hospital and medical college constructions projects in Hyderabad,
Bangalore and Tirupati for Employee State Insurance Company
(ESIC).
KVPL recorded a net profit of INR7.4 crore on a gross turnover of
INR204.8 crore in FY 13 (provisional unaudited financials) when
compared to INR10.9 crore and INR233.2 crore respectively in FY
12.
KAY KAY: ICRA Suspends 'BB+' Rating on INR13.5cr Long Term Loan
---------------------------------------------------------------
ICRA has suspended the '[ICRA]BB+' rating with a stable outlook,
assigned to the INR13.50 crore long term fund based facility and
[ICRA]A4+ rating assigned to the INR6.00 crore short term non-fund
based facility. ICRA has also suspended [ICRA]BB+/Stable and
[ICRA]A4+ ratings assigned to the INR1.50 crore of unallocated
amount of Kay Kay Overseas Corporation. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
L.P. HOSPITALITY: CRISIL Suspends 'B' Rating on INR112MM Loans
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
L.P. Hospitality Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 112 CRISIL B/Stable Suspended
The suspension of ratings is on account of non-cooperation by LP
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, LP is yet to
provide adequate information to enable CRISIL to assess LP's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
LP was set up in 1998 by Mr Vikramjit Singh. LP has partially
started a four-star hotel in Faridabad (Haryana) called Vibe by
the Lalit Traveller under the Lalit Hospitality group. The hotel
has 113 rooms; it has started operations with 70 rooms and is
expected to be fully operational by October 2011. The hotel is
situated on the Faridabad Highway close to the toll junction.
Facilities offered at the hotel include restaurants, bar, coffee
shops, and conference centres. In addition, the hotel premises
house a Pind Balauchi restaurant, banquet hall, and a bar.
METROPOLITAN INFRA: CARE Assigns 'D' Rating to INR175cr Loans
-------------------------------------------------------------
CARE assigns 'CARE D' rating to the NCD issue of Metropolitan
Infra Housing Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 175 CARE D Assigned
Debentures (NCD)
Rating Rationale
The rating takes into account the invocation of the rating trigger
clause forming part of the terms of the NCD issue due to which the
obligations currently remain outstanding.
Incorporated in 2006, Metropolitan Infra Housing Pvt. Ltd., a
84.16% subsidiary of Gammon India Ltd (GIL, rated CARE B/A4),
holds 180 acres of land at Dombivli, Thane. The company plans to
either develop the land or sell it depending upon the market
conditions. GIL has provided an unconditional and irrevocable
corporate guarantee to the outstanding NCD issue of MIHPL. The
said NCD issue, redeemable in FY15 (refers to the period April 1
to March 31), has an additional rating trigger clause (i.e.
mandatory repayment in case the rating of the guarantor falls
below A+). Consequent to the invocation of the trigger clause, the
obligations under the NCD issue have become due and remain
outstanding.
NAMAL TRADING: CRISIL Reaffirms 'BB-' Rating on INR100MM Loans
--------------------------------------------------------------
CRISIL's rating on the bank facility of Namal Trading Company Pvt
Ltd continues to reflect the extensive industry experience of
NTCPL's promoters and the company's efficient working capital
management. These rating strengths are partially offset by NTCPL's
constrained financial risk profile, marked by a modest net worth
and below-average debt protection metrics. The rating also factor
in the company's high revenue and geographical concentration due
to presence in the National Capital Region, and relatively small
market position in the fabric trading industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL BB-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that NTCPL will continue to benefit over the
medium term from its promoters' extensive experience in the
fabrics trading business. The outlook may be revised to 'Positive'
if the company registers significant improvement in its
profitability, along with sustained improvement in its scale of
operations, leading to improvement in its debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if NTCPL
registers weakening in its financial risk profile, either on
account of lower-than-expected profitability, larger-than-expected
working capital requirements, or large debt-funded capital
expenditure.
Update
For 2012-13 (refers to financial year, April 1 to March 31), NTCPL
registered marginal revenue growth, as reflected in its net sales
of INR1.3 billion in the year as against INR1.2 billion in 2011-
12. The company's operating margin was largely in line with
CRISIL's expectation at 1.1 per cent for 2012-13. Also, the
company's working capital management remained prudent, with gross
current assets of less than 50 days as on March 31, 2013. CRISIL
believes that though NTCPL will continue to benefit from its
efficient working capital management and its promoters' industry
experience, its margins will remain low on account of the trading
nature of its operations and its small market position due to its
geographical concentration.
NTCPL was set up by Mr. Vishal Jain and Mrs. Nidhi Gupta in 2007.
It is involved in wholesale trading of various kinds of fabrics,
including cotton and grey fabrics, which are primarily used as
sofa fabrics and lining fabrics. The promoter family has
experience of over two decades in the fabric trading business
through group companies.
NISAN EXPORTS: CRISIL Reaffirms 'BB+' Ratings on INR75MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Nisan Exports continue
to reflect the extensive experience of NE's promoters in exporting
fabrics to African countries, and the firm's established customer
relations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 350 CRISIL A4+ (Reaffirmed)
Proposed Long-Term 56.9 CRISIL BB+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 18.1 CRISIL BB+/Stable (Reaffirmed)
The ratings also factor in NE's above-average financial risk
profile, marked by moderate capital structure. These rating
strengths are partially offset by NE's constrained business risk
profile, resulting from geographic and customer concentration, and
susceptibility to volatility in raw material prices and foreign
exchange (forex) rates, and to intense market competition.
Outlook: Stable
CRISIL believes that NE will continue to benefit over the medium
term from the promoter's extensive experience in exporting fabrics
and established customer relations. The outlook may be revised to
'Positive' if the firm significantly improves its scale of
operations, while it maintains its profitability and diversifies
its customer base along with an expansion in its geographic
presence. Conversely, the outlook may be revised to 'Negative' if
NE's operating margin and topline decline, or its financial risk
profile deteriorates because of larger-than-expected debt-funded
capital expenditure (capex) programmes, or if its working capital
cycle increases, or if its partners continue to withdraw
substantial capital from the firm.
Update
In 2012-13 (refers to financial year, April 1 to March 31), NE's
sales declined by around 4 per cent from the previous year, as
competitive pressures impacted the order flow from top customers.
However, its operating profitability improved to 10.6 per cent in
2012-13, supported by forex gains of around INR40.0 million and
improved realisations, with upgraded machinery and improved
operating efficiency. NE's operating margin maybe constrained
between 8 and 9 per cent, due to volatile raw material prices and
forex fluctuations over the medium term.
NE's operations remain working-capital-intensive, with gross
current assets (GCAs) of around 140 days as on March 31, 2013,
driven by high debtors. The firm's working capital requirements
could increase along with its scale of operations. NE has
maintained its above-average financial risk profile, marked by a
moderate capital structure. NE's gearing was 1.12 times as on
March 31, 2013. The firm sustained a comfortable interest coverage
ratio of above 4 times. However, its net cash accruals to total
debt (NCATD) ratio weakened due to a capital withdrawal of
INR118.0 million, in excess of net profit, to support the initial
operations of group entity, Nisan Electricals India Pvt Ltd. The
promoters are unlikely to withdraw capital over the medium term,
due to their focus on firm's expansion activities. Despite a
decline, NE maintained its moderate net worth at INR325.9 million
as on March 31, 2013. NE does not have any significant debt-funded
capital expenditure (capex) plans, and is expected to maintain its
above-average financial risk profile over the medium term.
NE has adequate liquidity, and is expected to generate sufficient
cash accruals to service maturing debt over the medium term. Its
average bank limit utilisation for the 12 months through September
2013 was 90 per cent. NE has short-term financial flexibility
because of its unencumbered cash and bank balance of around
INR20.0 million.
NE reported a net profit of INR87.4 million on net sales of INR1.5
billion for 2012-13, vis-…-vis a profit of INR59.5 million on net
sales of INR1.6 billion for 2011-12.
NE was set up in 1998. The firm is promoted by Jetpur (Gujarat)-
based Mr. Suresh Hirpara, Mr. Shailesh Hirpara, and Mr. Arvind
Hirpara, and their family members. NE processes (prints and dyes)
and exports cotton fabrics.
OMKAR COTTON: CARE Reaffirms 'B+' Rating on INR6cr LT Bank Loans
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of Omkar
Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6 CARE B+ Reaffirmed
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of the capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating continues to remain constrained on account of the small
scale of operations of Omkar Cotton Industries coupled with weak
financial risk profile characterized by thin profit margins,
leveraged capital structure and weak debt coverage indicators. The
rating further continues to be constrained by its presence in the
lowest segment of textile value chain with limited value addition
in the cotton ginning business and seasonality associated with the
procurement of raw material resulting into working-capital
intensive nature of operations.
The rating continues to draw strength from the wide experience of
the partners in the cotton industry and locational advantage in
terms of proximity to the cotton-growing regions in Gujarat.
The ability of OCI to increase its ginning operations, improve
profitability and effectively manage its working capital cycle, in
addition to improving its capital structure would remain the key
rating sensitivities.
Vijapur-based (Gujarat) OCI is a partnership firm formed in
January 2007. OCI currently has 17 partners with an unequal profit
and loss sharing agreement among them. OCI is engaged in cotton
ginning & pressing activities with an installed capacity of 66,000
bales per annum and cotton-seed crushing capacity of 840 Metric
Tons Per Annum (MTPA) as on March 31, 2013 at its sole
manufacturing facility located at Vijapur in the Mehsana district
of Gujarat. OCI generates its entire revenue from the domestic
market only. It has 24 ginning machines, five oil expeller
machines for crushing cottonseed, one semi-automated pressing
machine and one belt conveyer.
During FY13 (refers to the period April 1 to March 31), OCI
reported a total income of INR33.38 crore with a PAT of INR0.05
crore as against a total income of INR31.02 crore and PAT of
INR0.05 crore during FY12.
PARAMEX TRANSFORMERS: CARE Cuts Ratings on INR8.68cr Loans to 'D'
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Paramex Transformers Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.68 CARE D Revised from CARE BB-
Facilities
Short-term Bank 3.00 CARE D Revised from CARE A4
Facilities
Rating Rationale
The revision in ratings assigned to the bank facilities of Paramex
Transformers Limited takes into account the ongoing delays in debt
servicing due to its weak liquidity position.
Paramex Transformers Limited was incorporated in September 2010,
as a closely-held public limited company. PTL is promoted by Mr
Hemant Aggarwal, Mrs Shweta Aggarwal and Mrs Santosh Aggarwal (all
family members). PTL is engaged in the manufacturing of power &
distribution transformers along with the maintenance and repairing
of transformers. The company has a unit for manufacturing of
transformers with capacities ranging from 10 KVA (Kilovolt ampere)
to 10 MVA (Megavolt ampere) at Noida, Uttar Pradesh. These
transformers are mainly supplied to state electricity boards of
Uttar Pradesh, Uttarakhand and Madhya Pradesh and also to other
government entities.
For FY12 (refers to the period April 1 to March 31), PTL achieved
a total operating income of INR12.93 crore with PAT of INR1.06
crore.
PERSANG ALLOY: CARE Rates INR0.47cr LT Bank Loans at 'B+'
---------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Persang Alloy Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 0.47 CARE B+ Assigned
Facilities
Long-term/Short- 13.50 CARE B+/CARE A4 Assigned
term Bank Facilities
Rating Rationale
The ratings assigned to the bank facilities of Persang Alloy
Industries Private Limited are primarily constrained due to its
financial risk profile marked by thin profit margins, leveraged
capital structure, weak debt coverage indicators and liquidity
position. The ratings are further constrained on account of its
presence in a fragmented industry, raw material price and foreign
exchange fluctuation risk.
These constraints outweigh the benefits derived from the vast
experience of the promoters and reputed but concentrated customer
profile.
The ability of PAIPL to increase its scale of operations,
improvement in profit margins and capital structure while managing
its working capital efficiently are the key rating sensitivities.
Vadodara-based (Gujarat) PAIPL was established in 1989 as a
partnership firm and subsequently converted to a private limited
company in February 2007. It is engaged in the manufacturing of
soldering products such as tin-predominant solder, lead-
predominant solder sticks, wire, foils, fluxes, and flux-cored
solder wire. PAIPL operates through a sole manufacturing facility
at Vadodara with an installed capacity of 1,000 metric tonnes per
annum as on March 31, 2013. It had a technological collaboration
with Shenmao Technology Inc, Taiwan.
As per the provisional results for FY13 (refers to the period
April 1 to March 31), PAIPL reported a total operating income of
INR48.97 crore (FY12 (A): INR53.42 crore) and a net profit of
INR0.35 crore (FY12 (A): INR0.59 crore).
PODDER & PODDER: CRISIL Rates INR125MM Cash Credit at 'BB+'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable' rating to the long-
term bank facility of Podder & Podder (Equipment & Project) Pvt
Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 125 CRISIL BB+/Stable (Assigned)
The rating reflects PPPL's established market position as dealer
for JCB India Ltd (JCB) in Meghalaya, Tripura and south Assam
supported by promoters experience in the business. These rating
strengths are partially offset by PPPL's below-average financial
risk profile marked by highly leveraged capital structure, average
debt protection measures and exposure to intense competition in
heavy earth moving (HEME) and construction equipment business
leading to pressure on margins.
Outlook: Stable
CRISIL believes that PPPL will maintain its business risk profile
over the medium term on the back of its promoters' extensive
experience in the HEME dealership business. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves on account of better profitability, while maintaining
working capital cycle and improvement in capital structure.
Conversely, the outlook may be revised to 'Negative' if the
company's working capital cycle weakens or profitability weakens
or if it undertakes any larger-than-expected debt-funded capital
expenditure programmes.
Incorporated in 2006, PPPL (initially set up as a partnership in
1990) is promoted by Mr. Mrinal Kanti Podder and his son Mr.
Vivekananda Podder. It is an authorised dealer for HEME and heavy
commercial vehicles for JCB in Meghalaya, Tripura and south Assam.
RAMANJANEYA MODERN: ICRA Ups Rating on INR5cr Cash Credit to 'B+'
-----------------------------------------------------------------
ICRA has upgraded the long-term rating assigned to INR5.00 crore
fund based facilities of Ramanjaneya Modern Rice Mill from
'[ICRA]B' to '[ICRA]B+'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash credit 5.00 [ICRA]B+ Upgraded
The assigned rating continues to be constrained by highly
fragmented and intensely competitive nature of rice milling
industry resulting in low operating margins; moderate gearing
levels coupled with moderate coverage indicators of the firm;
susceptibility to climatic risks affecting the availability of
paddy; and policy restrictions on exports and open market sales
for non-basmati rice that limit the flexibility and price
realizations. The rating however takes comfort from strong
increase in sales made by the firm; the long-standing experience
of the promoter in the rice milling industry and easy availability
of raw material owing to the mill being present in one of the
major rice-growing areas in Andhra Pradesh.
Ramanjaneya Modern Rice Mill is engaged in the milling of paddy
and produces raw rice. The rice mill is located in Cherukuwada
village of West Godavari in Andhra Pradesh. The production
capacity is 120 MT per day and it produces non-basmati variety of
rice which is non-sortex. RMRM, apart from selling rice to FCI,
sells it to dealers in Assam and Maharashtra who then export it to
countries like Bangladesh.
Recent Results
In FY2013 (unaudited and provisional), the firm reported an
operating income of INR19.71 crore and an operating profit of
INR0.58 crore as against an operating income of INR16.37 crore and
an operating profit of 0.42 crore in FY2012.
ROYAL SYNTHETICS: CARE Reaffirms 'BB+' Rating on INR2cr Loans
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Royal Synthetics.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2 CARE BB+ Reaffirmed
Facilities
Short-term Bank 58 CARE A4+ Reaffirmed
Facilities (Non-
Fund Based)
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The reaffirmation of the ratings assigned to the bank facilities
of Royal Synthetics are constrained by low profitability margins-
a distinctive characteristic applicable to trading nature of its
operations, susceptibility of its profitability margins to
volatility in prices of chemicals/fluctuations in exchange rates
and highly leveraged capital structure on account of working
capital intensive nature of operations.
The ratings favorably consider the experience of the partners in
the chemical trading business, established relationship with the
suppliers, diversified customer profile and end-user application.
RS' ability to manage foreign exchange risk and effectively manage
its working capital requirements is the key rating sensitivity.
Established by Mr Ajay Shah in the year 1993, Royal Synthetic is
primarily engaged in importing, trading and distribution of
chemicals such as di-isocyanate, polyurethane, polyester polyol,
and other additives and derivatives. The firm procures majority of
its products from the international suppliers located in Japan,
China, USA and Europe and sells them in the domestic market. The
products find varied application and are mainly used in flexible
slab stock foam, thermoware, refrigeration panels, and paints. The
firm is also into trading of rubber chemicals and bulk drugs.
SARADHA PAPERS: CARE Assigns 'BB+' Rating to INR204.04cr Loans
--------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of Saradha Papers and Boards Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 204.04 CARE BB+ Assigned
Facilities
Short-term Bank 3.96 CARE A4+ Assigned
Facilities
Rating Rationale
The ratings are constrained by the moderate size of operations and
the relatively lower capacity utilisation of Saradha Papers and
Boards Private Limited and the execution risk associated with the
large, debt funded project being implemented by the company. The
ratings also factor in the highly fragmented and competitive
nature of the paperboard industry.
The ratings, however, favorably consider the deployment of the
promoters' equity contribution towards the project and the
favorable capital structure of the company. The ratings also take
into account the presence of an experienced senior management team
and the established relationships of the company with a few
reputed clients backed by an effective logistics and supplier
base.
Going forward, the ability of the company to complete the project
within the estimated cost and revised time-frame and effectively
manage the large scale of operations and working capital
requirements would be the key rating sensitivities.
SPBPL was originally incorporated in 2002 as Vaikgunth Duplex
Board Mills Private Limited for setting up a paperboard
manufacturing plant at Ikkarai Thathapalli village, Erode
district, Tamil Nadu. The company was taken over by the
Coimbatore-based Senthil group in 2006.
SPBPL currently has a capacity of 50 TPD (tonnes per day) for
producing uncoated paperboards from recycled paper, primarily used
in industries such as matches, packaging and fireworks and
for the production of value added packaging items. SPBPL is
currently undertaking a large scale capacity augmentation program
for adding a capacity of 550 TPD to produce variants of coated
paperboards and install a captive power plant of 15 MW.
SPBPL registered a PAT of INR1.5 crore on a total operating income
of INR29.1 crore in FY13 (refers to the period April 1 to
March 31) as against a PAT of INR2.2 crore on a total operating
income of INR23.6 crore in FY12. As per the provisional results
for 4MFY14, the company earned a PBT of INR0.8 crore on a total
operating income of INR9.4 crore.
SHAH NANJI: CARE Rates INR4cr LT Bank Loans at 'BB'
---------------------------------------------------
CARE assigns 'CARE BB/CARE A4' ratings to the bank facilities of
Shah Nanji Nagsi Exports Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4 CARE BB Assigned
Facilities
Short-term Bank 26 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Shah Nanji Nagsi
Exports Private Limited are constrained by a single product (rice)
concentration in the revenue making it susceptible to the
government regulations relating to rice exports and the working
capital intensive nature of operations. The ratings also factor in
SNNEPL's presence in the agro-commodity nature of the business
which exposes it to the vagaries of the climatic conditions and
fragmented market with limited entry barriers.
The ratings, however, derive strength from the rich promoter
experience and a well-established agro-commodity procurement
network, coupled with a long standing relationship with the
customers.
The ability of the company to manage working capital effectively
and enhance the scale of other product lines to mitigate single
product concentration risk, remain the key rating sensitivities.
Background SNNEPL was set up in November 1919 as a proprietorship
concern, Shah Nanji Nagsi Exports, by the late Mr Nagsi Hirji Shah
at Nagpur in Maharashtra. The firm was reconstituted as a private
limited company on May 20, 1997. The company has been in the agri-
trading business for more than nine decades and commenced
exporting in 1991. It became a three-star export house in 2009.
The company is engaged in export trading (post sorting) of non-
basmati rice, sugar, corn, niger seed, pulses and other food
grains. The company is also engaged in the import of popcorn,
green peas, yellow peas and many pulses, with operations
centralised at Nagpur. SNNEPL exports to around 40 countries
including South Africa, USA, Ukraine, Djibouti, UAE, Singapore,
Oman, Bahrain, Saudi, Belize, Ethiopia, France, Portugal,
Netherland and some other African countries.
The day-to-day operations of the company are currently being
managed by Mr Ashwin Shah (promoter-director), who is the fourth
generation of the family, along with his father, Mr Sudhir
Shah.
For FY13 (audited) (refers to the period April 1 to March 31),
SNNEPL reported an operating income of INR154.49 crore and PAT of
INR1.97 crore as against an operating income and PAT of
INR166.25 crore and INR4.31crore respectively in FY12.
SHEEL CHAND: CARE Assigns 'BB' Rating to INR48.5cr LT Bank Loans
----------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4+' ratings to the bank
facilities of Sheel Chand Agroils Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 48.50 CARE BB Assigned
Facilities
Short-term Bank 100.00 CARE A4+ Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Sheel Chand Agroils
Pvt Ltd are constrained on account of volatility in the
availability and prices of agro-based raw material and consequent
impact on margins, elongated operating cycle and intense
competition. The ratings also factor in the risks relating to
foreign exchange fluctuations and government regulations. However,
the ratings draw strength from the experience of the promoters and
management team, healthy growth in operating income, established
operations and distribution network and favorable demand outlook
for edible oil in India. Going forward, the company's ability to
improve the profitability margins and capital structure amidst the
fluctuating raw material prices would remain the key rating
sensitivity.
Incorporated in 1994, SCA was promoted by Mr Mohan Goel and his
brother Mr Pramod Goel. The company is engaged in the processing
of crude palm oil (CPO) and soyabean oil into refined edible
oils (81% of total income in FY13; refers to the period April 01
to March 31). The company is also engaged in the manufacturing of
vanaspati ghee (4% of total income in FY13) and other by
products like stearic acid/fatty acids (8% of total income in
FY13) along with trading of CPO (7% of total income in FY13).
SCA's manufacturing facility is located at Rudrapur, Uttrakhand.
At present, the company has edible oil refining capacity of
120,000 MTPA and Stearic acid production capacity of 30,000 MTPA.
In FY13, the company reported a total operating income of
INR748.95 crore and PAT of INR15.04 crore as against a total
operating income of INR415.14 crore and a PAT of INR9.03 crore in
FY12. During Q1FY14, SCA reported net sales of INR314.20 crore.
SHETRUNJAY DYEING: ICRA Suspends 'BB-' Rating on INR6.31cr Loans
----------------------------------------------------------------
ICRA has suspended '[ICRA]BB-' rating assigned to the
INR4.0 crore cash credit fund based facilities and INR2.31 crore
term loans fund based facilities of Shetrunjay Dyeing & Weaving
Mills Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
Set up in April 2004 as partnership firm, Shetrunjay Dyeing &
Weaving Mills Ltd. was converted to public limited company on
January 17, 2011 with Mr. Anil Jain, Bhanwarlal Jain and Mr.
Jimesh Jain as directors of the company. The company is engaged in
the manufacturing of both grey and finished fabrics (cotton) for
menswear suiting and undertakes job work for yarn dyeing. The
registered office cum manufacturing unit is located at Bhiwandi in
Thane while job work unit for yarn dyeing is situated at Narpoli
in Thane.
SHREE AMBE: ICRA Reaffirms 'BB+' Rating on INR10.11cr Loans
-----------------------------------------------------------
ICRA has re-affirmed '[ICRA]BB+' rating to the INR10.11 crore
long-term fund based facilities (enhanced from INR7.15 crore) of
Shree Ambe Food Products Private Limited. The outlook on the long-
term rating is stable. ICRA has also re-affirmed '[ICRA]A4+'
rating to the INR(3.00) crore short-term non fund based (sub-
limit) facilities (revised from INR1.00 crore) of the Company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 10.11 [ICRA]BB+ (Stable)/
Based facilities re-affirmed
Short Term Non-fund (3.00) [ICRA]A4+/re-affirmed
Based (sub-limit)
facilities
The re-affirmation of the ratings continues to factor long
standing experience of the promoters of more than a decade in the
wheat milling business; the Company's diversified customer base,
its established relationships with the institutional customers and
positive demand outlook for the industry with wheat being a vital
part of the staple Indian diet. Aided by strong volume growth and
firm wheat prices, the Company's revenues witnessed healthy growth
in 2012-13. However, SAFPPL's margins and cash accruals continued
to remain thin on account of high input costs and limited pricing
flexibility owing to the highly fragmented industry pattern and
low value added nature of operations. The ratings also take into
account regular equity infusion by the promoters in turn
supporting the Company's capital structure. During 2012-13, the
Company received equity infusion of INR1.5 crore resulting in
improved gearing of 0.9x as on March 31, 2013. The ratings however
continue to remain constrained by the Company's financial profile
characterized by negative cash flows and modest coverage metrics.
Going forward, aggressive capital expenditure plans relating to
capacity expansion are likely to exert pressure on capital
structure and profitability. The Company's ability to maintain its
capital structure, improve its debt protection metrics and
operating accruals would remain key rating sensitivities.
Incorporated in 2005, Shree Ambe Food Products Private Limited is
engaged in the manufacturing of flour milling products -- whole
wheat atta, maida, resultant atta, suji and bran from wheat. The
Company's milling unit, located at Hoskote (Bangalore) has
increased grinding capacity of ~36,000 tonnes (from 33,000 tonnes
in 2011-12) per annum. The company has been promoted by Mr. Bimal
Kant Gupta and Mr. Nneeraj Agrawal. Besides SAFPPL, the promoters
also own another company named Ambe Agro Industries Limited, which
has two flour milling units in the state of Bihar with a total
grinding capacity of 350 tonnes per day. Ambe Agro Industries
Limited, which was incorporated in 1995, reported an operating
income of INR 98.4 crore with a net profit of INR 0.6 crore for
2012-13. Promoters have also incorporated two more companies
namely Ambe Agro Foods Private Limited and Meenakshi Agro Flour
Mill Industries Private Limited in Uttar Pradesh and Tamil Nadu,
respectively with total capacity of 700 MT per day.
Recent Results
For 2012-13, SAFPPL's operating income stood at INR75.3 crore with
a profit after tax of INR0.3 crore against profit after tax of
INR0.3 crore on operating income of INR47.6 crore in 2011-12.
SHREE RAM: CARE Reaffirms 'B+' Rating on INR28.61cr LT Loans
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Shree Ram Proteins Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 28.61 CARE B+ Reaffirmed
Facilities
Short-term Bank 0.50 CARE A4 Reaffirmed
Facilities
Rating Rationale
The ratings continue to remain constrained on account of the weak
financial risk profile of Shree Ram Proteins Private Limited
marked by a leveraged capital structure, weak debt coverage
indicators and the stressed liquidity position. The ratings are
further constrained by SRPPL's vulnerability of profitability to
the fluctuation in the raw material prices, which are related
to seasonality and crop harvest and its presence in the working
capital intensive and fragmented edible oil industry with a
limited bargaining power against buyers.
The ratings, however, continue to draw strength from the
experience of the promoters in the cotton seed industry, SRPPL's
comparative advantage over traditional oil seed processing units
and the favorable location which provides easy access to high
quality raw materials.
The ability of SRPPL to improve its capital structure and
liquidity position in addition to improving profit margins in
light of the volatile raw material costs would remain the key
rating sensitivities.
Shree Ram Proteins Private Limited was incorporated in 2008 by Mr
Lalit Vasoya and Mr Sudhir Vasoya. SRPPL has set up a cotton seed
processing facility at Gondal in Gujarat, to produce cotton seed
oil (washed cotton seed oil - WCS), de-oiled cake (DOC), cotton
linters and hulls and started commercial production from February
2010. SRPPL supplies WCS to refiners in Gujarat as it does not
have any captive refining capacity. SRPPL has an installed
capacity of 450 MT/day for delinting and 500 MT/day for solvent
extraction as on March 31, 2013. During FY13, (refers to the
period April 1 to March 31) SRPPL derived 18% of its total income
from sale of WCS, 51% from the sale of DOC, 25% from sale of hulls
while the rest is being derived from the sale of cotton linters.
As per the audited results for FY13, SRPPL reported a total
operating income of INR116.56 crore and a PAT of INR1.03 crore.
SHRI GANGA: ICRA Suspends 'BB-/A4' Rating on INR9.5r Loans
----------------------------------------------------------
ICRA has suspended the '[ICRA]BB-(Stable)/[ICRA]A4' ratings
assigned to the INR9.50 crore bank limits of Shri Ganga Paper
Mills Private Limited. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
SOLACE ENGINEERS: CRISIL Rates INR50MM Cash Credit at 'B+'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Solace Engineers (Mktg.) Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Assigned)
Cash Credit 50 CRISIL B+/Stable (Assigned)
The ratings reflect SEPL's small scale of operations in highly
fragmented engineering industry and its working-capital-intensive
operations. These rating weaknesses are partially offset by the
benefits that SEPL derives from its promoters' extensive
experience in the industry.
Outlook: Stable
CRISIL believes that SEPL will maintain its business risk profile
backed by its promoters' extensive experience in the engineering
industry. The outlook may be revised to 'Positive' if SEPL
significantly scales up its operations along with improvement in
working capital management and profitability. Conversely, the
outlook may be revised to 'Negative' if there is slowdown in the
company's revenues or deterioration in its profitability or if
financial risk profile deteriorates due to lower-than-expected
accruals or higher-than-expected debt-funded capex or
deterioration in liquidity profile due to further stretch in
working capital requirement.
Incorporated in 1988, SEPL was promoted by the Ghosh family, based
in Vadodara (Gujarat). It manufactures pharmaceutical machineries
such as sifters, post bin blender, tablet auto coater, fluid bed
processor, and rapid mixer granulator.
SEPL reported a net profit of INR7.77 million on net sales of
INR117.4 million for 2010-11 (refers to financial year, April 1 to
March 31), as against a net profit of INR13.75 million on net
sales of INR167.5 million for 2009-10. SEPL's provisional net
sales are estimated at INR101.6 million for 2011-12.
SRI GANESH: CRISIL Suspends 'B+' Rating on INR90MM Loans
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facility of
Sri Ganesh Bottles Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by
SGBPLO with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SGBPLis yet to
provide adequate information to enable CRISIL to assess SGBPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
SGBPL was established as a partnership concern in 1967 by Mr. P.
Venkata (first generation entrepreneur). The firm was
reconstituted as a private limited company in 1998, when the
promoter's two sons, Mr. P. Narsing Rao and Mr. P. Ganesh, joined
the business. Presently, the day-to-day operations are managed by
the sons and their spouses.
SRI LAKSHMI: ICRA Assigns 'B' Ratings on INR13cr Loans
------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]B' to INR8.81 crore
fund based limits and to INR4.19 crore unallocated limits of Sri
Lakshmi Ganapathi Surya Teja Modern Rice Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 8.81 [ICRA]B assigned
Unallocated limits 4.19 [ICRA]B assigned
The assigned rating is constrained by the weak financial profile
characterized by low profitability, high gearing and modest
coverage indicators; small scale of operations in the rice milling
industry and risks inherent in the partnership nature of the firm.
The rating is further constrained by government policy
restrictions on the quantity of rice which can be sold in the open
market limiting the flexibility and realizations for the firm and
susceptibility of profitability and revenues to agro-climatic
risks which impact the availability of the paddy in adverse
weather condition. However the rating draws comfort from the
healthy growth in operating income in the past two years albeit on
a low base; experienced promoter in the rice industry; easy
availability of paddy from proximity of plant in major paddy
cultivating region of the country and favorable demand prospects
for rice with India being the second largest producer and consumer
of rice internationally.
Sri Lakshmi Ganapathi Surya Teja Modern Rice Mill is established
as a partnership firm in October' 2010 by Mr. J Gowtham Kumar. The
firm is engaged in the milling of paddy with an installed capacity
of 36500 MT per annum to produce raw and boiled rice. The milling
unit is located at Bhaggeswaram in West Godavari District of
Andhra Pradesh.
Recent Results
The firm reported profit after tax of INR 0.26 crore (provisional
and unaudited) on an operating income of INR 28.72 crore
(provisional and unaudited) during FY2013 as against profit after
tax of INR 0.06 crore on an operating income of INR 22.61 crore
during FY2012.
SUMAN MANUFACTURING: ICRA Puts 'B+' Ratings on INR7.45cr Loans
--------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR 3.95 crore term
loan and INR 3.50 crore cash credit facilities of Suman
Manufacturing Works Private Limited. ICRA has also assigned an
'[ICRA]A4' rating to the INR 0.20 crore non-fund based bank
facilities of SMWPL. An unallocated amount of INR 1.35 crore has
been rated by ICRA at '[ICRA]B+' and '[ICRA]A4' on long term and
short term scale respectively.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 3.95 [ICRA]B+ assigned
Term Loan
Fund Based Limit- 3.50 [ICRA]B+ assigned
Cash Credit
Non Fund Based Limit? 0.20 [ICRA]A4 assigned
Bank Guarantee
Fund Based/Non Fund 1.35 [ICRA]B+(Stable)/
Based Limit-Untied [ICRA]A4 assigned
limit
The ratings take into account SMWPL's limited operational track
record, and its dependence on purchased leaves, which exposes the
company to availability of quality green leaves. ICRA notes that
substantial debt servicing obligation may also exert pressure on
the company's cash flows in the near term.The company has recently
changed its line of business from manufacturing of incense sticks
to manufacturing of black tea of CTC variety. The assigned ratings
take into account the experience of the promoters in the tea
industry which is likely to provide competitive advantage in the
company's tea business and the favorable outlook for the domestic
tea industry at least over the short to medium term.
Originally incorporated as a real estate company Suman Housing
Private Limited in 2004, the company changed its name to Suman
Mfg. Works Pvt. Ltd in the year 2008-09 and entered the business
of manufacture of incense sticks. In 2010-11 the company exited
from the incense sticks business and shifted its focus to
manufacturing of black tea of CTC category. The company has no
plantation facility; thereby it has to depend entirely on bought
green leaves for production of black tea. The factory of the
company is located at Jalpaiguri, West Bengal. The annual
installed capacity for production of black tea is 3.5 million kg.
ICRA has also rated three of its group entities viz. Brojendra
Plantation Private Limited (rated at [ICRA]BB/Stable), M.B.Tea &
Allied Products Private Limited (rated at [ICRA]BB/Stable) and
Aryan Tea Plantation Pvt Ltd (rated at [ICRA]BB Stable /[ICRA]A4
Recent Results
The company has reported a net profit of INR0.00 crore
(provisional) on an operating income of INR0.04 crore
(provisional) during 2012-13; as compared to a net loss of INR0.01
crore on an operating income of INR0.13 crore during 2011-12.
SUNSHIELD CHEMICALS: CRISIL Puts BB- Ratings on Withdrawal Notice
-----------------------------------------------------------------
CRISIL's ratings on Sunshield Chemicals Ltd's bank facilities
continue to be on 'Notice of Withdrawal' for a period of 180 days
from July 11, 2013 at the company's request. The rating will be
withdrawn at the end of the notice period in line with CRISIL's
policy on withdrawal of its bank loan ratings.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 17.5 CRISIL A4+ (Continues to be
on Notice of Withdrawal and
Watch Positive)
Cash Credit 70.0 CRISIL BB-(Continues to be
on Notice of Withdrawal and
Watch Positive)
Cash Credit 30.0 CRISIL BB-(Continues to be
on Notice of Withdrawal and
Watch Positive)
Cash Credit 70.0 CRISIL BB-(Continues to be
on Notice of Withdrawal and
Watch Positive)
Factoring/Forfaiting 10.0 CRISIL A4+ (Continues to be
on Notice of Withdrawal and
Watch Positive)
Letter of Credit 80.0 CRISIL A4+ (Continues to be
on Notice of Withdrawal and
Watch Positive)
Proposed Long-Term 34.8 CRISIL BB-(Continues to be
Bank Loan Facility on Notice of Withdrawal and
Watch Positive)
The ratings were placed on watch following the announcement of
acquisition of majority stake in Sunshield by Rhodia Amines
Chemicals Pte Ltd (Rhodia Amines), followed by an open offer made
to the shareholders of Sunshield by Rhodia Amines.
Sunshield, incorporated in 1986 as a private limited company, is
promoted by Mr. Satish Kelkar. The company was reconstituted as a
public limited company and listed on the Bombay Stock Exchange in
1995. In 2004-05 (refers to financial year, April 1 to March 31),
Mr. Amit Choksey acquired a controlling stake in Sunshield. The
company manufactures organic and other speciality chemicals at its
plant in Raigad (Maharashtra); these chemicals are used in
industries such as rubber, plastic, polymers, lubes/oil, and wire
enamel. Sunshield was acquired by Solvay SA (Solvay), Belgium, in
2012-13 through Solvay's step-down subsidiary Rhodia Amines.
SUNSHINE INFRA: CRISIL Puts B+ Ratings on INR83.7MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sunshine Infraengineers India Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 3.7 CRISIL B+/Stable (Assigned)
Bank Guarantee 122.3 CRISIL A4 (Assigned)
Secured Overdraft 80.0 CRISIL B+/Stable (Assigned)
Facility
The ratings reflect SIEIPL's modest scale of operations, and the
susceptibility of the company's profitability to intense
competition in the civil construction industry. The ratings also
factor in SIEIPL's below-average financial risk profile. These
rating weaknesses are partially offset by the extensive experience
of SIEIPL's promoters in the civil construction industry and the
company's moderate order book.
Outlook: Stable
CRISIL believes that SIEIPL will continue to benefit over the
medium term from its promoters' extensive experience in the civil
construction industry. The outlook may be revised to 'Positive' if
the company achieves sustained and substantial growth in its scale
of operations and profitability, while it maintains its capital
structure and improves its liquidity. Conversely, the outlook may
be revised to 'Negative' in case of a sharp decline in SIEIPL's
profitability or lengthening of its working capital cycle, or if
the company undertakes any larger-than-expected debt-funded
capital expenditure programme, resulting in further weakening of
its financial risk profile.
SIEIPL, incorporated on August 19, 2010, specialises in executing
engineering, procurement and construction projects for state
government entities in South India. The company is promoted by Mr.
Ekamdareswara Rao and his business associates.
SUSHMA BUILDTECH: ICRA Reaffirms 'BB-' Rating on INR55cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR55.0
crore fund based limits of Sushma Buildtech Limited at'[ICRA]BB-.
The outlook on the rating is stable.
The rating reaffirmation takes comfort from satisfactory progress
in SBL's on-going projects, debt tie-up in place for all the
projects and funds infused by promoters. The rating continues to
derive comfort from promoter's experience in the real estate
sector, and its paid-up land for the on-going projects. The rating
is, however, constrained by its exposure to execution risks
considering the sizeable on-going projects; and exposure to market
risks given a sizeable un-booked area in some projects and
geographical concentration of its projects. The rating also takes
into account significant dependence on incremental bookings and
timely collections from customers for funding of the projects and
debt servicing. ICRA has also taken a note of the large debt
repayment obligations of the company in medium term, due to which
incremental bookings and collections from customers in the on-
going projects would be crucial.
Going forward, the company's ability to improve bookings and
collections, and timely execute its on-going projects will be the
key rating sensitivity.
Sushma Buildtech Ltd was incorporated in 2005 and is promoted by
Shri Binder Pal Mittal. SBL is engaged in real estate development
in Zirakpur (Punjab). SBL has completed four real estate projects
in Zirakpur and Mohali (Punjab) with about 3.8 lakh sq ft of area.
SBL is currently executing three residential real estate projects
with total saleable area of 24.6 lakh sq ft.
In the financial year ending March 31, 2013 (FY13), SBL had an
operating income of INR80.9 crore on which it earned a Profit
after Tax (PAT) of INR4.1 crore compared to operating income of
INR50.2 crore and PAT of INR4.0 crore in FY12.
UTRACON STRUCTURAL: CRISIL Rates INR100MM Cash Credit at 'BB+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Utracon Structural Systems Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 100 CRISIL A4+ (Assigned)
Bank Guarantee 70 CRISIL A4+ (Assigned)
Cash Credit 100 CRISIL BB+/Stable (Assigned)
The ratings reflect USSI's established market position as a post-
tensioning contractor, and its above-average financial risk
profile, marked by healthy gearing and debt protection metrics.
These rating strengths are partially offset by the company's
exposure to risks related to intense competition, high industry
concentration, and economic slowdowns.
Outlook: Stable
CRISIL believes that USSI will benefit over the medium term from
its promoters' extensive industry experience and its healthy order
book. The outlook may be revised to 'Positive' in case of a
sustained improvement in the company's scale of operations and
profitability, while it maintains its healthy capital structure.
Conversely, the outlook may be revised to 'Negative' if USSI faces
delays in project execution or in collection of receivables from
its customers, resulting in lower-than-expected growth in its
revenues and operating profitability, or it undertakes a large
debt-funded capital expenditure programme, resulting in weakening
of its financial risk profile.
Established in 2004, Chennai (Tamil Nadu)-based USSI is engaged in
the design, supply, and installation of post-tensioning works in
buildings and civil engineering structure constructions. USSI is a
part of the Singapore-based Utracon group, which offers a wide
range of specialist design and construction services. The
company's day-to-day operations are presently managed by its
executive director, Mr. M Kamalakannan.
USSI reported a profit after tax (PAT) of INR19 million on a net
sales of INR1.2 billion for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR23 million on net
sales of INR1.0 billion for 2011-12.
VEERABHADRESWARA RAW: ICRA Reaffirms B+ Rating on INR17.25cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to INR17.25
crore fund-based facilities of Veerabhadreswara Raw and Boiled
Rice Mill at '[ICRA]B+'. ICRA has also reaffirmed the short-term
rating assigned to its INR1.45 crore non fund-based limits at
'[ICRA] A4'. It has also assigned ratings of [ICRA] B+/A4 to its
INR6.30 crore unallocated limits.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash credit 9.75 [ICRA]B+ reaffirmed
Term Loan 7.50 [ICRA]B+ reaffirmed
SLC 1.45 [ICRA]A4 reaffirmed
Unallocated 6.30 [ICRA]B+/A4 assigned
The limits of the firm have been enhanced from INR15.00 crore
rated last year to INR25.00 crore this year.
The assigned ratings continue to be constrained by highly
fragmented and intensely competitive nature of rice milling
industry resulting in low operating margins; moderate
profitability levels coupled with moderate coverage indicators of
the firm; susceptibility to climatic risks affecting the
availability of paddy; and policy restrictions on exports and open
market sales for non-basmati rice that limit the flexibility and
price realizations. The ratings, however, take comfort from strong
increase in sales made by the firm in the last year; the long-
standing experience of the promoter in the rice milling industry
and easy availability of raw material owing to the mill being
present in one of the major rice-growing areas in Andhra Pradesh.
Veerabhadreswara Raw and Boiled Rice Mill is engaged in the
milling of paddy and produces raw and boiled rice. The rice mill
is located in Polamuru village of East Godavari in Andhra Pradesh.
Its installed production capacity is 240 MT per day (three shifts
of 80 MT per 8 hour shift) and is presently in the process of
adding another 240 MT per day. The firm produces 100% sortex rice
with majority of rice being the boiled variety.
Recent Results
In FY2013 (unaudited and provisional), the firm reported an
operating income of INR45.16 crore and an operating profit of
INR1.72 crore as against an operating income of INR38.79 crore and
an operating profit of 1.56 crore in FY2012.
WEXPER INDIA: ICRA Suspends 'BB+' Rating on INR11cr Bank Limits
---------------------------------------------------------------
ICRA has suspended the '[ICRA]BB+(Stable)' rating assigned to the
INR11.00 crore bank limits of Wexper India Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
====================
N E W Z E A L A N D
====================
PHOENIX FOREX: Forex Software Firm Placed Into Liquidation
----------------------------------------------------------
Matt Nippert at Stuff.co.nz reports that controversial foreign
exchange software company Phoenix Forex has been placed into
liquidation, but key figures from the company have set up a
similar operation in Ireland and India.
In September the Financial Markets Authority (FMA) formally warned
investors against dealing with Phoenix Forex, particularly over
"unrealistic" and widely advertised claims its OakFX software
could generate passive annual returns of 65 per cent, Stuff.co.nz
recalls.
Stuff.co.nz notes that since the FMA issued its warning, more than
a dozen investors have made formal complaints that the software--
which cost up to NZ$25,700 in license fees -- had resulted in tens
of thousands of dollars in losses.
According to the Companies Office, shareholders appointed
liquidators McDonald Vague to the company on October 24,
Stuff.co.nz reports.
Stuff.co.nz says the company's self-described "sales legend",
former bankrupt and criminal Mark Brewer, was last week allowed to
remain in the foreign exchange business after a registered
financial adviser provided a character reference and bankrolled
his bid to pay reparations.
Mr. Brewer was sentenced this month in the Auckland District Court
after pleading guilty to running a business while bankrupt and
successfully downgraded a previously indicated term of home
detention to a NZ$5,000 fine after registered financial adviser
David McEwen wrote a letter in support of his business associate,
adds Stuff.co.nz.
SECTION ZERO: La De Da Festival Goes On Despite Liquidation
-----------------------------------------------------------
Talia Shadwell at Stuff.co.nz reports that Section Zero, a failed
company that ran the popular Martinborough New Year's Eve festival
La De Da, is deeply in debt to creditors who want it to face the
music.
But this year's show will go on, with a lineup that includes
American hip-hop heavyweight A$AP Rocky, the report says. La De Da
is now being run by a different company, which is immune to the
debts run up by Section Zero, according to Stuff.co.nz.
According to the report, suppliers to previous years' festivals
said they are owed a total of almost NZ$140,000 by Section Zero,
which was placed in liquidation on December 17 last year, after an
application by a portaloo supplier. Inland Revenue, as well as bus
and audio suppliers, also said they are owed money.
Stuff.co.nz relates that Langlands Motorcycles manager
Amber Greenfield is among those owed thousands of dollars, and had
a bailiff seize co-director Josh Mossman's motorbike in a
desperate attempt to recover some of the funds.
=================
S I N G A P O R E
=================
BW GROUP: Moody's Places Ba2 CFR on Review for Possible Downgrade
-----------------------------------------------------------------
Moody's has placed the Ba2 corporate family and senior secured
bond ratings of BW Group ('BW') on review for possible downgrade.
The rating has been on negative outlook since June 2012.
Ratings Rationale:
The review principally reflects the reducing headroom under the
company's bank loan and bond covenants amid elevated leverage and
new vessel acquisitions. Under these covenants BW is required to
maintain a collateral pool of vessels with market value at least
125% of total outstanding amount under the respective facilities.
Based on Moody's estimates, the company has available unencumbered
vessels to withstand only around a 10% decline in the value of the
vessels in the existing collateral pools. This level of headroom
is inconsistent with BW's Ba2 ratings.
"The decline in headroom under the covenants follows an increase
in the company's borrowings following recent acquisitions and
ordering of new vessels," says Vikas Halan, a Moody's Vice
President and Senior Analyst.
Although the company owns a fleet of 8 unencumbered liquefied
natural gas (LNG) vessels (estimated value around $1.5 billion),
these are not readily available for the collateral pool as they
are owned through a joint venture with Marubeni, in which BW has a
51% stake. Had these vessels been included in the collateral pool,
the headroom under the covenant would have been comfortably
higher.
Since January 2013, the company has announced new builds and
acquisitions totaling around $1.0 billion, which includes
acquisitions of 5 very large gas carriers (VLGC) from Maersk
Tankers($300m to $320m), 4 product tankers from W Tankers ($74
million), and orders for 4 new VLGC ($300 million) and 1 floating
storage and regasification unit ($239 million).
At the same time Moody's recognizes that the company is
undertaking corporate actions which are anticipated to improve the
headroom under its covenants. BW is in the process of publicly
listing its liquefied petroleum gas (LPG) business, which includes
a fleet of 36 VLGCs (including 4 on order and 12 chartered in
vessels) and 5 LGCs. It is understood that there will be a
secondary element to the offering (a partial sale of BW's stake),
although the size of this is not yet public. The LPG segment
accounted for 60% of the operating EBITDA of the company for the
six months ended June 2013.
"Depending on the final valuation and the extent of stake sold by
BW -- should it be successful in concluding the sale - Moody's
estimates the company could receive around $0.9- 1.1 billion in
proceeds. To the extent that BW uses these proceeds to reduce debt
at the BW level, negative pressure on the company's Ba2 ratings
could be alleviated. " adds Halan.
The IPO was announced by BW Group in September 2013 and is
expected to complete by November 2013.
Although BW will continue to directly own 100% of its fleet of 11
VLCC, 17 product tankers, 2 chemical tankers and 3 LNG vessels, it
will only have access to dividend income from the LPG business
following successful completion of the IPO.
"We estimate the annual EBITDA of the remaining vessels directly
held by BW to be around $80 million. Other than the 3 LNG vessels,
which are on long term time charters, most of the other vessels
are exposed to charter rate volatility as they operate in the spot
market," adds Halan.
"Following a successful IPO, bondholders will continue to be
secured by an exclusive collateral pool, however the level of
structural subordination will be increased for bondholders at the
BW level with respect to the cash flows from the LPG segment (and
which are the subject of the IPO)," adds Halan.
The review will focus on (i) the impact of corporate actions in
terms of improving covenant headroom including the completion of
the announced IPO, (ii) the degree of any subsequent debt
repayment at the BW level and (iii) the extent of structural
subordination for bond holders, once the steps taken by the
company are completed.
Moody's could confirm the Corporate Family Rating ("CFR") should
the company's headroom under its covenants materially improve
either through completion of the IPO or by effectively utilizing
its unencumbered LNG fleet for funding its business within the
next three months.
On the other hand, the CFR and the rating on the bonds could be
downgraded if BW Group continues to operate with ongoing very
tight headroom under its collateral maintenance requirements
either because of its failure to complete the IPO and reduce debt
at BW level, or because of its inability to utilize its fleet of
unencumbered LNG vessels to fund its business.
The rating on the bond could also be lowered below the CFR, if
Moody's assesses that subordination risk for bond holders has
increased materially after completion of steps taken by the
company.
BW is a diversified shipping group with operations in four key
segments: liquefied petroleum gas (LPG), tankers, liquefied
natural gas (LNG) and floating, production, storage and offloading
vessels (FPSO). It currently operates a fleet of 95 owned, part-
owned or controlled vessels.
BW is a privately held holding company, of which 93% is owned by
the Sohmen family and 7% by HSBC. BW owns 49.8% stake in BW
Offshore Ltd, an Oslo listed company and the world's second-
largest FPSO owner and operator.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***