/raid1/www/Hosts/bankrupt/TCRAP_Public/150318.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, March 18, 2015, Vol. 18, No. 054
Headlines
A U S T R A L I A
ALPHATISE LTD: Administrators Seek Expressions of Interest
BUNDOK RESOURCES: First Creditors' Meeting Slated For March 23
COLSDALE HAULAGE: In Liquidation; Meeting Set For March 27
DELIVER WESTERN: First Creditors' Meeting Set For March 23
HOMEART PTY: Closing Remaining Stores; 600 Jobs Axed
NITRO DRILLING: Assets Up For Sale
RIVERLINE ENTERPRISES: First Creditors' Meeting Set For March 23
SAPPHIRE XII 2013-1: Fitch Affirms 'Bsf' Rating on Class F Notes
TELEZON LIMITED: Sale Process Ongoing Following Collapse
VOCATION LTD: To Sell Two Units to Careers Australia for AUD15MM
C H I N A
ROAD KING: Moody's Says 2014 Results is Stable
I N D I A
A P STEEL: CRISIL Reaffirms B+ Rating on INR35MM Cash Credit
AGRASIA IMPEX: ICRA Assigns B Rating to INR5cr Cash Credit
ARIHANT METALS: CRISIL Reaffirms B Rating on INR165MM Cash Loan
AUSTIN DISTRIBUTORS: CRISIL Reaffirms B- Rating on INR273.5M Loan
BLISS ENTERPRISES: CRISIL Reaffirms B Rating on INR35MM Cash Loan
CEREAL EXPORTS: CARE Assigns B Rating to INR18.50cr LT Loan
CERATEC: ICRA Suspends B+ Rating on INR4cr LT Loan
CHAKRAVARTHY FABRIC: CRISIL Rates INR106.6MM Term Loan at 'B'
COMFORT HOSPITALITY: CRISIL Suspends D Rating on INR46.6MM Loan
DELSEA EXPORTS: CRISIL Assigns B+ Rating to INR40MM Packing Loan
DRISHTI MOTORS: CARE Assigns B+ Rating to INR9.42cr LT Loan
DUNN FOODS: CARE Revises Rating on INR40.71cr LT Loan to 'D'
DWARIKESH SUGAR: ICRA Reaffirms B+ Rating on INR260cr Cash Loan
ETHIX REALTORS: CRISIL Reaffirms B+ Rating on INR600MM LT Loan
ETHIX VANDAN: CRISIL Reaffirms B+ Rating on INR250MM Term Loan
EUROKON GLOBAL: CRISIL Assigns B+ Rating to INR60MM Packing Loan
FAROUK SODAGAR: CARE Reaffirms B+/A4 Rating on INR100cr Loan
GAZEBO INDUSTRIES: CRISIL Ups Rating on INR7.5MM Cash Loan to B+
GLOBAL FARM: CARE Assigns B+ Rating to INR17.45cr LT Bank Loan
J. P. ENTERPRISES: ICRA Suspends B+/A4 Rating on INR8.5cr Loan
JUNAID ENTERPRISES: CRISIL Rates INR20MM Cash Loan at 'B'
KALINGA FERRO: CRISIL Reaffirms B+ Rating on INR221MM Cash Loan
KANDARP CONSTRUCTION: CRISIL Cuts INR60M Cash Credit Rating to B+
KARAN RICE: ICRA Assigns B+ Rating to INR8cr Term Loan
LAKSH NATURAL: CRISIL Reaffirms B- Rating on INR50MM Cash Credit
LORD BUDDHA: CARE Assigns B+ Rating to INR21.16cr LT Bank Loan
MAHESH WOOD: ICRA Assigns B Rating to INR6.0cr Bank Loan
MAKRO CAST: CARE Reaffirms D Rating on INR36cr LT Bank Loan
MANGALDEEP COLD: ICRA Assigns B Rating to INR4.10cr Term Loan
NATANI ROLLING: CARE Reaffirms B Rating on INR5cr LT Bank Loan
NAV ENGINEERS: CRISIL Cuts Rating on INR49.7MM Term Loan to D
PARTAP WIRE: CRISIL Reaffirms B Rating on INR60MM Cash Credit
PRERANA PRATISTHAN: CRISIL Reaffirms D Rating on INR79.9MM Loan
R & B DENIMS: ICRA Reaffirms B+ Rating to INR36.35cr Term Loan
REFRIGERATED DISTRIBUTORS: CRISIL Reaffirms B+ INR40M Loan Rating
RHYTHM LAND: CRISIL Reaffirms B+ Rating on INR550MM LT Loan
SHYAM GINNING: CRISIL Suspends B Rating on INR300MM Cash Credit
SIDDHI REFOILS: CARE Lowers Rating on INR50.50cr ST Loan to D
SK AGROS: ICRA Assigns B Rating to INR6cr Cash Credit Limit
SRI VENKATRAM: ICRA Upgrades Rating on INR23cr LT Loan to C+
WRC ENGINEERING: CRISIL Reaffirms B Rating on INR28MM Cash Loan
I N D O N E S I A
(PERSERO) ASURANSI: Fitch Assigns 'BB+' IFS Rating
N E W Z E A L A N D
HARVESTPRO NZ: Failure Puts Jobs at Risk, Industry Group Says
NORTHERN CREST: Robt Jones Tries to Get Access to Audiotape
P H I L I P P I N E S
PHILIPPINE WOMEN: Files For Corporate Rehabilitation
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A U S T R A L I A
=================
ALPHATISE LTD: Administrators Seek Expressions of Interest
----------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that urgent expressions
of interest are sought for the sale or recapitalisation of the
business and assets of Alphatise Ltd.
Alphatise is an e-commerce start-up venture that has an online
marketplace which enables consumers to submit product wishes and
set the price they want to pay for the products. An offer can be
made by retailers with customers securing the deal, the report
says.
Currently, AUD4.5 million seed capital has been utilised for the
development of the platform of Alphatise which is still evolving,
according to Dissolve.com.au. The company plans for its next
software offering to have deals and notifications tailored to its
registered users based on shopping, location and search history.
Alphatise Ltd was placed into administration on March 5, 2015 with
Vaughan Neil Strawbridge and David Lombe of Deloitte being
appointed administrators of the company.
BUNDOK RESOURCES: First Creditors' Meeting Slated For March 23
--------------------------------------------------------------
Giovanni Maurizio Carrello and Mathieu Tribut of BRI Ferrier
Western Australia were appointed as administrators of Bundok
Resources Pty Ltd on March 11, 2015.
A first meeting of the creditors of the Company will be held at
Len Buckerage Conference Room, Adina Apartment Hotel, 138 Barrack
Street, in Perth, on March 23, 2015, at 11:00 a.m.
COLSDALE HAULAGE: In Liquidation; Meeting Set For March 27
-----------------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed Joint
and Several Liquidators of Colsdale Haulage Pty Ltd on 16 March
2015.
A meeting of creditors will be held at 11:00 am on Friday, 27
March 2015 at Clifton Hall, Level 3, 431 King William Street,
Adelaide.
DELIVER WESTERN: First Creditors' Meeting Set For March 23
----------------------------------------------------------
Giovanni Maurizio Carrello and Mathieu Tribut of BRI Ferrier
Western Australia were appointed as administrators of Deliver
Western Australia Pty Ltd on March 11, 2015.
A first meeting of the creditors of the Company will be held at
Len Buckerage Conference Room, Adina Apartment Hotel, 138 Barrack
Street, in Perth, on March 23, 2015, at 12:00 p.m.
HOMEART PTY: Closing Remaining Stores; 600 Jobs Axed
----------------------------------------------------
Kathy Sundstrom at Sunshine Coast Daily reports that Homeart Pty
Ltd is said to be closing the remainder of its stores in
Australia, affecting about 600 staff. The Sunshine Coast's last
surviving store, at the Maroochydore Homemaker Centre, held a
massive closing down sale on March 13, the report says.
The report notes that administrator PPB Advisory initially closed
13 stores, affecting 50 staff, after it was appointed on
January 22.
The company website said it originally had more than 140 retail
outlets, the report relates.
According to Sunshine Coast Daily, it was believed the plan was to
keep the more profitable remaining stores running. But a staff
member who asked to remain anonymous said they had been advised
last week all the stores were to close.
A Fair Work Ombudsman said employees could apply for redundancy
entitlements as well as long service leave entitlements, the
report adds.
Homeart Pty Ltd, previously known as Copperart, was one of
Australia's largest specialty retailers, selling a wide range of
consumer goods, electrical appliances and homewares.
Daniel Walley, Phil Carter and Mark Robinson of PPB Advisory were
appointed as Voluntary Administrators of Homeart Pty Ltd,
Copperart Pty Ltd and Copperart Holdings Pty Ltd on Jan. 22, 2015.
At the time of the appointment, the Homeart chain had 116 stores
nationwide, with around 600 employees, but no longer had any
franchises, SmartCompany said.
NITRO DRILLING: Assets Up For Sale
----------------------------------
Cliff Sanderson at Dissolve.com.au reports that McGrathNicol, the
receivers and managers of Nitro Drilling Pty Ltd, are seeking
expressions of interest for the sale of the business and assets of
Nitro.
Dissolve.com.au says the assets of the company include strong
customer relationship, specialised mobile drilling rights for
minerals and gas and well maintained equipment and plan which
include 25 mobile drilling rigs and three grouting units.
Nitro Drilling is a drilling firm that has a head office in the
Sunshine Coast and drilling operations in Dysart, Queensland.
RIVERLINE ENTERPRISES: First Creditors' Meeting Set For March 23
----------------------------------------------------------------
Matthew James Donnelly & David Mark Hodgson of Grant Thorton were
appointed as administrators of Riverline Enterprises Pty Ltd,
trading as Matera Construction, on March 13, 2015.
A first meeting of the creditors of the Company will be held at
Grant Thornton, Level 1, 10 Kings Park Road, in West Perth, on
March 23, 2015, at 3:00 p.m.
SAPPHIRE XII 2013-1: Fitch Affirms 'Bsf' Rating on Class F Notes
----------------------------------------------------------------
Fitch Ratings has affirmed 14 tranches of two Sapphire series
transactions as well as six Bluestone Warehouse tranches of
residential mortgage-backed floating rate notes. The transactions
are securitizations of Australian non-conforming residential loans
originated by Bluestone Group Pty Limited.
The transactions are: Sapphire XII Series 2013-1 (Sapphire XII);
Sapphire XIII Series 2014-1 (Sapphire XIII); and Bluestone
Mortgages Warehouse Trust (Bluestone WH).
KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit
enhancement supports the relevant notes at their current ratings,
the agency's expectations of Australia's economic conditions, and
that the credit quality and performance of the underlying loans
remain within the agency's expectations.
Arrears are high across the transactions, as is common in the non-
conforming market. At 31 January 2015, 30+ days arrears levels
ranged between 8.0% (Bluestone WH) and 16.0% (Sapphire XII),
compared to Fitch's 4Q14 non-conforming low-documentation Dinkum
RMBS Index of 6.70%. Defaults and losses have been stable since
January 2014 and are still below Fitch's expectations. Losses were
covered by strong excess income available over the period.
The collateral underlying Sapphire XII and Sapphire XIII is highly
seasoned, with a weighted average (WA) seasoning of over eight
years. As a result, Fitch's calculated WA loan-to-value ratio
reduced by between 8ppand 10ppafter indexation was applied. Loans
in the Bluestone Mortgages Warehouse Trust are less seasoned due
to the availability period.
RATING SENSITIVITIES
Unexpected increases in delinquencies, defaults and losses would
be necessary before any negative rating action is considered on
the transactions' senior notes. The credit enhancement levels of
the senior notes can support multiples of the arrears levels
reported in the latest investor reports.
Available credit enhancement is expected to increase for Sapphire
XII and Sapphire XIII as the rated notes pay down, thereby
reducing sensitivities to combinations of increased delinquencies
and defaults. As a result, any negative rating action on these
transactions is considered very unlikely. The Prospect for future
upgrades is however constrained by future concentration issues.
Fitch's initial Key Rating Drivers and Rating Sensitivities are
further discussed in Sapphire XII and Sapphire XIII's
corresponding New Issue report listed under "Related Research".
Included as an appendix to Sapphire XII and Sapphire XIII's report
is a description of the representations, warranties, and
enforcement mechanisms.
A comparison of the transactions' representations, warranties and
enforcement mechanisms (RW&Es) to those of typical RW&Es for this
asset class is also available by accessing the reports and/or
links under Related Research below.
Sapphire XII Series 2013-1 Trust:
AUD65.1 million Class A1 notes (AU3FN0021424) affirmed at 'AAAsf';
Outlook Stable;
AUD17.0 million Class A2 notes (AU3FN0021432) affirmed at 'AAAsf';
Outlook Stable;
AUD5.9 million Class B notes (AU3FN0021440) affirmed at 'AAsf';
Outlook Stable;
AUD6.8 million Class C notes (AU3FN0021457) affirmed at 'Asf';
Outlook Stable;
AUD4.6 million Class D notes (AU3FN0021465) affirmed at 'BBBsf';
Outlook Stable;
AUD2.6 million Class E notes (AU3FN0021473) affirmed at 'BBsf';
Outlook Stable; and
AUD2.0 million Class F notes (AU3FN0021481) affirmed at 'Bsf';
Outlook Stable.
Sapphire XIII Series 2014-1 Trust:
AUD126.3 million Class A1 notes affirmed at 'AAAsf'; Outlook
Stable;
AUD36.8 million Class A2 notes affirmed at 'AAAsf'; Outlook
Stable;
AUD7.6 million Class B notes affirmed at 'AAsf'; Outlook Stable;
AUD7.4 million Class C notes affirmed at 'Asf'; Outlook Stable;
AUD4.8 million Class D notes affirmed at 'BBBsf'; Outlook Stable;
AUD2.7 million Class E notes affirmed at 'BBsf'; Outlook Stable;
and
AUD2.1 million Class F notes affirmed at 'Bsf'; Outlook Stable.
Bluestone Mortgages Warehouse Trust:
AUD166.2 million Class A notes affirmed at 'AAAsf'; Outlook
Stable;
AUD8.0 million Class B notes affirmed at 'AAsf'; Outlook Stable;
AUD9.4 million Class C notes affirmed at 'Asf'; Outlook Stable;
AUD3.8 million Class D notes affirmed at 'BBBsf'; Outlook Stable;
AUD0 Class E notes affirmed at 'BBBsf'; Outlook Stable; and
AUD3.6 million Class F notes affirmed at 'BB-sf'; Outlook Stable.
TELEZON LIMITED: Sale Process Ongoing Following Collapse
--------------------------------------------------------
Cara Waters of SmartCompany reports that administrators are
working to sell Telezon Limited after it collapsed last month.
Craig Shepard and Leanne Chesser of Korda Mentha were appointed as
Telezon's administrators in February after the former Australian
Securities Exchange listed company ran out of cash, the report
says.
SmartCompany notes that Telezon had administrators appointed once
before in 2001 and recorded losses for the past four years despite
revenue increases and AUD1.2 million in capital raising.
In the creditor's report, Telezon's directors attribute the
collapse of the business to a failure to raise further funds,
SmartCompany relays.
"Quantum of funds needed to successfully expand the business and
accelerate its growth globally were not achievable, even though
multiple and varied attempts were made at attracting investment,"
the report relays.
The report records Telezon's assets as having a total book value
of AUD3.5 million, SmartCompany discloses.
Mr. Shepard told SmartCompany the administrators are in the middle
of a sale process.
He said Telezon's intellectual property in the form of trademarks
and patents has value and there are a number of interested parties
at this stage including from overseas, SmartCompany adds.
Telezon's operations closed down before Korda Mentha was
appointed, SmartCompany notes.
A second meeting of creditors is scheduled for March 24.
Telezon is a plastic needle developer and its website describes it
as developing "a unique suite of exclusive and world-patented
plastic needles (draw-up and hypodermic), injection systems and
technology." It was listed on the ASX until 2011 when the business
was delisted and moved to the SIM-VSE a Sydney based exchange
focusing on "clean tech" businesses.
VOCATION LTD: To Sell Two Units to Careers Australia for AUD15MM
----------------------------------------------------------------
Vocation Limited on March 16 announced it had entered a
conditional agreement with Careers Australia Group for the
AUD15 million sale of the Australian School of Management and the
Australian College of Applied Education. The price is materially
above the value at which it bought the businesses in 2014,
Vocation said.
The sale is conditional on notifications to the Australian Skills
Quality Authority (ASQA), the Tertiary Education Quality and
Standards Agency (TEQSA) and the Federal Department of Education
and Training.
Vocation said the sale is consistent with the company's debt
reduction aim and capital restructure plans, which will support
the continuing business once the key elements of the review are
implemented.
Vocation chairman Doug Halley said: "The Company received strong
interest from many credible parties. The outcome vindicates the
public tender process. Shareholders should be pleased with the
superior result, which is a reflection of the Company's measured
approach in implementing the strategic review."
Shareholder approval is not required for this sale.
Vocation was advised by 333 Capital and Allens.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 20, 2015, The Australian said former federal education
minister John Dawkins quit as Vocation's chairman in November last
year as a shareholder launched legal action against the company,
claiming it had misled investors. Vocation's share price has
plummeted in recent months, from AUD3.35 as recently as September
2014 to a record low of 18.5c in December 2014.
According to Business Spectator, the group had flagged asset sales
following a first half loss after a tumultuous six months,
including the exit of Mr. Dawkins.
Vocation posted a loss of AUD273 million for the six months to
December 31, a deterioration on the AUD1 million loss the group
recorded in the first half of the 2014 financial year, Business
Spectator discloses. That result was weighed down by
AUD241 million in impairments linked to problems with the
company's Victorian businesses, after the loss of government
contracts forced it to write down the value of its assets, adds
Business Spectator.
Vocation Limited (ASX:VET) -- http://vocation.com.au/-- delivers
education and training services to corporate clients, individuals,
and ancillary services to third party VET providers in Australia.
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C H I N A
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ROAD KING: Moody's Says 2014 Results is Stable
----------------------------------------------
Moody's Investors Service said that Road King Infrastructure
Limited's performance in 2014 was in line with expectations and
its credit profile remains well positioned relative to other B1-
rated peers. The rating outlook is positive.
Moody's notes that revenue grew by 11% to HKD12.7 billion on the
back of strong contracted sales from its property division in
2013, while its adjusted EBITDA margin stayed at approximately
22.6% in 2014 relative to 22.4% in 2013, against an industry trend
of declining profit margins. As a result, its credit metrics
remained robust with EBITDA interest coverage of 2.8x and adjusted
debt-to-book capitalization of 58%.
"We expect Road King's credit profile to be resilient amid the
weak market condition. EBITDA interest coverage to remain stable
at 2.3x-2.7x in the next 12-18 months, as the company will keep
the growth in debt at a moderate level due to the weakened market
outlook," says Dylan Yeo, a Moody's Analyst.
The toll-road segment provided a robust income stream against the
backdrop of weakened market conditions for the property segment in
2014. Cash distribution from its toll-road operations held at
HKD515 million compared to HKD512 million in 2013, although
interest coverage from such cash flow fell slightly to 0.50x from
0.54x due to the increase in total interest expenses by 8%.
"Stable recurring income from toll-road also supports the credit
profile. We expect cash flow from toll-road operations to
increase by 5%-10% in 2015 and interest coverage from such cash
flow will remain within the 0.45x-0.50x range based on this
assumption," adds Yeo.
In 2015, Road King will benefit from the full-year contribution of
Machao Expressway in Anhui Province that was acquired in May 2014.
Moody's also expects Road King's revenue to trend downwards in
2015 due to weaker-than-expected contracted sales of RMB9.4
billion in 2014 --a 23% decline from 2013 -- that will, in turn,
result in lower property deliveries.
The company has adopted a strategy to protect profitability amid
weakened market conditions with contracted sale volumes, in terms
of gross floor area, falling by 14% to 0.95 million square meters
(sqm) (2013: 1.10 million sqm) against a smaller decline in the
average selling price of 10% to RMB9,941/sqm (2013:
RMB11,060/sqm).
Moody's expect its EBITDA margin to remain above 20% in 2015 due
to this strategy and project moderate growth for contracted sales
in 2015, slower than the double-digit rate seen in 2011-2013.
Moody's considers that Road King's cash-on-hand and operating cash
flow is sufficient to meet the repayment of short-term debt of
HKD4.8 billion and contractual land payment obligations in the
next 12 month.
The company continues to exhibit prudent financial management,
reducing the proportion of short-term debt to total debt to 35%
from 44% in 2013. It also maintains its conservative approach
towards land acquisitions, replenishing 753,000 sqm of its land
bank against 946,000 sqm in contracted sales.
However, the cash-to-short-term debt ratio fell to 76% from 111%
in 2013 as its cash balance (including restricted cash) declined
to HKD4.0 billion from HKD6.8 billion due to lower contracted
sales and increased land costs during the year. Moody's expect
the ratio to remain in the range of 70-80% in 2015 as its cash
balance is projected to stay stable on the assumption of moderate
contracted sale growth.
The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.
Road King Infrastructure Limited is a Hong Kong-listed company
that invests in: (1) toll road projects, comprising 11 major
expressways and highways spanning approximately 554 kilometers and
in six provinces in China: Anhui, Guangxi, Hebei, Hunan, Jiangsu
and Shanxi; and (2) a property development portfolio of more than
28 major projects with a total gross floor area of approximately
5.3 million square meters across eight provinces and
municipalities in China as of Dec. 31, 2014.
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I N D I A
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A P STEEL: CRISIL Reaffirms B+ Rating on INR35MM Cash Credit
------------------------------------------------------------
CRISIL's ratings on the bank facilities of A P Steel Re-Rolling
Mill Ltd (APS) reflect its small scale and working-capital-
intensive operations, average financial risk profile, marked by
weak debt protection metrics and modest net worth, and the
susceptibility of its operating performance to volatility in steel
prices.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 26.7 CRISIL A4 (Reaffirmed)
Term Loan 9.0 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by its promoters'
extensive experience, its semi-integrated operations and
established customer relationship.
Outlook: Stable
CRISIL believes that APS will maintain its business risk profile
over the medium term, backed by its established customer
relationships and the promoter's extensive experience in the steel
industry. The outlook may be revised to 'Positive' if the company
reports a significant and sustained improvement in its scale of
operations and profitability, while it maintains its comfortable
capital structure; or a substantial improvement in its working
capital cycle, thereby enhancing its liquidity and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
APS's financial risk profile weakens, with a sharp decline in its
profitability margins or revenue, or deterioration in its working
capital cycle.
Update
APS reported operating income of INR368 million for 2013-14
(refers to financial year, April 1 to March 31), marked by
sluggish demand from the end customers. The company's operating
margin ranged between 1.26 and 3.08 per cent for the four years
through 2013-14. CRISIL believes that APS's business risk profile
will remain flattish over the medium term and be marked by
susceptibility to volatility in steel prices.
APS's financial risk profile is average, marked by moderate
gearing and weak debt protection metrics. The company had a modest
net worth of INR94 million and gearing of 0.48 times as on March
31, 2014. The gearing is expected to improve on account of steady
accretion to reserves. The company has weak debt protection
metrics as reflected in its interest coverage and net cash
accruals to total debt ratios of 1.80 times and 0.09 times,
respectively, for 2013-14. CRISIL believes that APS's financial
risk profile will improve over the medium term on account of
steady accretion to reserves.
APS has adequate liquidity marked by generation of sufficient cash
accruals of INR3.5 to 5.7 million to meet its repayment
obligations of INR2 to 3 million over the medium term; its bank
lines are utilised at an average 89.45 per cent during the 12
months ended December, 2014 to meet its working capital
requirements. CRISIL believes that APS's liquidity will remain
healthy over the medium term due to generation of sufficient cash
accruals.
APS was incorporated in 1992 as a private limited company. It was
founded by Mr. A P Azad along with his brother, Mr. A Shamsudheen,
and business acquaintances: Mr. K. Pankajakshan, Mr. K. Abdul
Latheef and Mr. C P Ali Bhav Haji. The company has semi-integrated
operations; and manufactures ingots, thermo-mechanically treated
(TMT) bars, rounds, flats and angles. APS's TMT bars are marketed
under the AP Suraksha brand. APS has a manufacturing facility in
Palakkad (Kerala).
AGRASIA IMPEX: ICRA Assigns B Rating to INR5cr Cash Credit
----------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to the INR7.00
crore (including unallocated limit of INR2.00 crore) of fund based
limits of Agrasia Impex (AI).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 5.00 [ICRA]B assigned
Cash Credit
Unallocated 2.00 [ICRA]B assigned
The assigned rating factors in AI's small scale of current
operation in the chilly trading business with weak financial
profile characterized by high gearing and low coverage indicators
and high working capital intensity of operation on account of
inventory maintained due to seasonal availability of chilly and
turmeric. The rating is also constrained on account of high
competition intensity in the business; risks related to agro
climatic condition as the products traded are agricultural
produce; and risk associated with the entity's status as a
proprietorship firm, including the risk of capital withdrawal by
the promoters as observed in FY 2014. The rating, however, derives
comfort from the experience of promoters in the trading of chilly
and easy availability of chilly in the vicinity on account of
favourable location of Andhra Pradesh. AI's established
relationship with customers ensures receipt of orders and order
backed inventory procurement mitigates price fluctuation risk in
the volatile commodity market.
The ability of the firm to grow its business by managing its
working capital intensity of operation would remain the key rating
sensitivities going forward.
Established by Mr. Nallamothu Sri Ramanjaneyulu in 2007, Agrasia
Impex (AI) is primarily engaged in the trading of chilly and
turmeric accounting for around 91% and 9% of the total revenues in
FY 2014. Earlier, the promoters were also involved in the trading
of chilly powder. Based on the orders received from customers, the
firm used to get chilly processed into powder on job work basis.
However, in the last 2-3 years, the firm has completely
discontinued the sale of chilly powder.
ARIHANT METALS: CRISIL Reaffirms B Rating on INR165MM Cash Loan
---------------------------------------------------------------
CRISIL's rating reflects Arihant Metals (Jodhpur)'s (AMJ's) modest
scale of operations, weak financial risk profile, and
susceptibility of its operating margin to fluctuations in raw
material prices. These rating weaknesses are partially offset by
its promoter's extensive experience in the steel industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 165 CRISIL B/Stable (Reaffirmed)
Term Loan 35 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that AMJ will benefit over the medium term from
its established customer relationship, and its promoter's
extensive industry experience. The outlook may be revised to
'Positive' if the firm reports substantial revenue and stabilises
its capital expenditure (capex) programmes in time, while it
maintains its profitability, thereby improving its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
AMJ's revenue or profitability decline significantly, or the firm
fails to stabilise its capex programme in time, constraining its
financial risk profile.
Update
AMJ's net profit and net sales declined to INR3.2 million and
INR446 million, respectively, for 2013-14 (refers to financial
year, April 1 to March 31) from INR6.4 million and INR438 million,
respectively, for 2012-13. Howevr, its operating margin improved
to 8.00 per cent in 2013-14 from 6.34 per cent in 2012-13,
primarily on account of in-house hot rolling capacity resulting in
low manufacturing expenses. The hot rolling capacity will be
further supported by job work income in the business.
The firm had a gearing of 1.57 times as on March 31, 2014; this is
expected to remain at similar levels over the medium term. Its
interest coverage and net cash accruals to total debt (NCATD)
ratios were at 1.30 times and 0.04 times, respectively, for 2013-
14. The firm's operations are working capital intensive, reflected
in high debtors of above 110 days and inventory of around 50 days
as on March 31, 2014. The firm's cash accruals are tightly matched
with its term debt repayment obligations. The company generated
cash accruals of around INR7 million as against the debt repayment
obligation of INR6 million in 2013-14 and are expected to maintain
similar cushion over the medium term. The firm's bank limits were
utilised at an average 95 per cent in the 12 months through
January 2015.
AMJ was established in 1993 as a proprietorship concern by Mr.
Padam Raj Abani. It manufactures stainless steel sheets which are
used to manufacture utensils, kitchenware and pipes. AMJ has a
manufacturing facility in Jodhpur (Rajasthan). The firm's
operations are managed by Mr. Padam Raj Abani and his sons, Mr.
Pankaj Abani and Mr. Gaurav Abani.
AUSTIN DISTRIBUTORS: CRISIL Reaffirms B- Rating on INR273.5M Loan
-----------------------------------------------------------------
CRISIL's ratings on the long term bank facilities of Austin
Distributors Pvt Ltd (ADPL) continue to reflect ADPL's stretched
liquidity, marked by inadequate cash accruals to meet its debt
maturing debt obligations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B-/Stable (Reaffirmed)
Term Loan 273.5 CRISIL B-/Stable (Reaffirmed)
The rating also factors in ADPL's constrained financial risk
profile, with high gearing and below-average debt protection
metrics and company's exposure to large debt-funded capital
expenditure (capex) plans. These rating weaknesses are partially
offset by the extensive experience of ADPL's promoters in the
automobile dealership industry and their funding support to the
company.
Outlook: Stable
CRISIL believes that ADPL will continue to benefit over the medium
term from its promoters extensive industry experience, their
funding support and its established relationships with Hyundai
Motors India Ltd (HMIL), Mitsubishi Motors (MM), and Eicher Motors
Ltd (EML) for the Kolkata (West Bengal) region. The outlook may be
revised to 'Positive' in case ADPL reports higher-than-expected
cash accruals, driven by improvement in revenues, while
maintaining its working capital cycle, or higher-than-expected
capital infusion, resulting in improvement in its capital
structure and subsequently financial risk profile. Conversely, the
outlook may be revised to 'Negative' in case of deterioration in
ADPL's financial risk profile, particularly liquidity, driven by
lower-than-expected cash accruals, resulting from decline in
revenues or profitability, or elongation in the working capital
cycle or larger-than-expected debt-funded capital expenditure
(capex) plans.
Update
ADPL has weak liquidity, primarily emanating from the large debt-
funded capex programme. The company is currently constructing of a
commercial building of nine floors that would include a showroom,
at an estimated cost of INR320 million, which is more than twice
ADPL's present net worth. The capex is to be funded in a debt-
equity ratio of 4.3:1.
With significant debt-funded capex plan, ADPL's financial risk
profile is expected to remain constrained with high gearing in the
range of 2.2 to 2.5 times over the medium term. Furthermore, with
contraction of external debt and moderate profitability, ADPL's
debt protection metrics are expected to remain subdued over the
medium term. The company's cash accruals are expected to remain
modest in the range of INR18 million to INR20 million, which will
be inadequate to service its maturing debt of around INR23
million. Nevertheless, these debt obligations are expected to be
serviced through promoters' funds. Over the three years ended
2013-14 (refers to financial year, April 1 to March 31), promoters
have infused funds of INR52.6 million to support its business
operations and ensure timeliness in servicing of debt. However,
the company's liquidity is expected to remain weak over the medium
term, given its modest cash accruals and weak current ratio and
timely funding support from the promoters will remain a key rating
sensitivity factor.
Sluggishness in the automobile industry led to decline in ADPL's
revenues during 2013-14. Nevertheless, ADPL commenced dealership
of Fiat India Automobiles Ltd (Fiat) vehicles during 2014-15; and
increasing share from HMIL dealership is expected to improve its
scale of operations. For the 10 months through January 2015, the
company's revenues are estimated at INR800 million and ADPL is
expected to register growth of around 6-8 per cent over the medium
term. ADPL's profitability is expected to remain stable, in the
range of 4 to 5 per cent over the medium term.
ADPL was set up in 1938 in Kolkata (West Bengal) by British
citizens. The company was acquaired by Mr. R P Patodia in 1970.
Currently, it is managed by Mr. Sanjay Patodia, who is the
managing director. ADPL has dealership of passenger cars of HMIL
(since March 2011), and MM (since 2004); and two-wheelers of EML
(since 1970).
BLISS ENTERPRISES: CRISIL Reaffirms B Rating on INR35MM Cash Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bliss Enterprises (BE)
continue to reflect the firm's modest scale of operations,
exposure to customer concentration risks in its revenue profile,
and weak financial risk profile, marked by modest net worth and
high gearing. These rating weaknesses are partially offset by the
benefits that the firm derives from its proprietor's extensive
experience in the pumps industry and established relationship with
its principal.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 24 CRISIL A4 (Reaffirmed)
Cash Credit 35 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that BE will continue to benefit from the
proprietor's extensive experience in the pumps industry. The
outlook may be revised to 'Positive' if the firm achieves
significant and sustainable improvement in its revenue and
margins, while improving its capital structure. Conversely, the
outlook may be revised to 'Negative' if BE registers significant
decline in its revenue or margins, or witnesses a significant
lengthening of its working capital cycle.
Update
In 2014-15 (refers to financial year, April 1 to March 31), BE's
revenue is estimated to decrease marginally to around INR95
million, as compared with INR98 million in the preceding year,on
account of the weak demand for pumpsets and valves owing to
slowdown in economic growth. The company's operating margin is
estimated to remain stable around 11 per cent on account of
specialised products being catered to the oil and gas sector,
wherein the firm benefits on account of its established
relationship with the clients.
BE's working capital requirements have remained high; the
company's debtor, inventory, and creditor levels are estimated at
97 days of sales, 77 days of sales, and 75 days of purchases,
respectively, leading to estimated gross current assets of over
191days as on March 31, 2015. The company's financial risk profile
has remained average, marked by high gearing, modest net worth,
and average debt protection metrics. Its gearing is estimated at 3
times as on March 31, 2015, mainly because of its modest net worth
of INR12.8 million and its high reliance on bank borrowings for
meeting its incremental working capital requirements. BE's debt
protection metrics have remained average because of its modest
accretion to reserves. Its interest coverage and net cash accruals
to total debt ratios are estimated at 1.45 times and 0.07 times,
respectively, for 2014-15.
BE has stretched liquidity; its cash accruals for 2014-15 are
estimated at INR2.7 million against nil debt obligations. The
company's bank limits of INR35 million have been utilized by
around 87 per cent over the 12 months ended January 31, 2015.
BE was established as a proprietorship concern in 2002 by Mr.
Baldev Wani. The concern is engaged in trading of pumpsets and
valves, which have use in the oil and gas sector for firefighting
purposes. BE is an authorised dealer for pumpsets and valves of
Kirloskar Brothers Ltd (KBL; rated 'CRISIL AA/Negative/CRISIL
A1+').
BE reported profit after tax (PAT) of INR1.5 million on net sales
of INR96.2 million for 2013-14against PAT of INR1.6 million on net
sales of INR102 million for 2012-13.
CEREAL EXPORTS: CARE Assigns B Rating to INR18.50cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Cereal
Exports Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 18.50 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Cereal Exports
Private Limited (CES) is primarily constrained by implementation
risk associated with its debt-funded green-field project. The
rating is further constrained by susceptibility to fluctuation in
raw material prices and monsoon dependent operations and
fragmented nature of the industry coupled with high level of
government regulation in the rice processing industry.
The rating, however, favourably takes into account experienced
promoters and favourable manufacturing location.
The ability of the company to successfully implement the project
and achieve desired sales and profitability levels would be the
key rating sensitivities.
CES, incorporated in 2013, is currently being managed by Mr
Parveen Kumar and Mr Nikhil Garg. The company is undertaking a
project for setting up a unit for processing of paddy with an
installed capacity of 54,000 MTPA at a cost of INR20.32 crore. The
project is situated at Ferozpur City, Punjab. The commercial
operations are expected to commence by April 2015. The company has
spent INR12.25 crore on the project till January 31, 2015.
CERATEC: ICRA Suspends B+ Rating on INR4cr LT Loan
--------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR4.00 crore,
long term fund based facility and [ICRA]A4 rating assigned to the
INR3.50 crore short term non fund based facility of Ceratec. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Incorporated in 2000, Ceratec is promoted by Mr. Anand Agarwal and
Mrs. Kavita Agarwal. The firm is engaged in the import and
retailing of tiles, sanitary ware, bath tub and steam cabinet to
end users and builders. The firm has three group companies namely;
Poona Ceramics, Poona Ceramics & Distributors and Poona Marboneel
Private Limited. These entities are engaged into tiles trading.
CHAKRAVARTHY FABRIC: CRISIL Rates INR106.6MM Term Loan at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Chakravarthy Fabric Pvt Ltd (CFPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5.9 CRISIL A4
Rupee Term Loan 106.6 CRISIL B/Stable
The ratings reflect CFPL's moderate scale of operations in the
intensely competitive textile industry, high customer
concentration risks, and below-average financial risk profile
marked by high gearing. These rating weaknesses are partially
offset by its promoters' extensive experience in the textile
industry.
Outlook: Stable
CRISIL believes that CFPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if considerable increase in
scale of operations and stable profitability lead to a stronger
financial risk profile for CFPL. Conversely, the outlook may be
revised to 'Negative' if decline in cash accruals or working
capital management, or any large debt-funded capital expenditure
leads to deterioration in its financial risk profile.
Incorporated in 2013, CFPL undertakes weaving of fabric on a job
work basis for clients. The company is based in Namakkal, Tamil
Nadu. Its operations are managed by Mr. Deepan Chakravarthy.
COMFORT HOSPITALITY: CRISIL Suspends D Rating on INR46.6MM Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Comfort Hospitality Pvt Ltd (CHPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 30.7 CRISIL D Suspended
Bank Loan Facility
Term Loan 46.6 CRISIL D Suspended
The suspension of rating is on account of non-cooperation by CHPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CHPL is yet to
provide adequate information to enable CRISIL to assess CHPL'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'
CHPL owns a star-rated hotel, Comfort Inn Sunset, in Ahmedabad
(Gujarat). The hotel is being run under the franchisee, marketing,
and operational agreement with Quality Inns India Pvt Ltd. The
hotel has 57 rooms, apart from facilities such as parking,
banquets, multi-cuisine restaurant, and a health club.
DELSEA EXPORTS: CRISIL Assigns B+ Rating to INR40MM Packing Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Delsea Exports Pvt Ltd (DEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 100 CRISIL A4
Packing Credit 40 CRISIL B+/Stable
The ratings reflect DEPL's modest scale of operations in the
intensely competitive seafood industry and its below-average
financial risk profile. These rating weaknesses are partially
offset by the extensive industry experience of DEPL's promoters.
Outlook: Stable
CRISIL believes that DEPL will continue to benefit over the medium
term from its promoter's experience in the seafood industry. The
outlook may be revised to 'Positive' if the company significantly
scales up its operations, while improving its operating
profitability and working capital management, resulting in
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if DEPL's accruals decline or if its
working capital management weakens, weakening its financial risk
profile, particularly its liquidity.
DEPL is a Kochi (Kerala)-based exporter of processed marine
products. Its operations are managed by Mr. Baburaj.
DEPL reported a profit after tax of INR7.13 million on total
revenue of INR217.05 million for 2013-14 (refers to financial
year, April 1 to March 31), against a net loss of INR2.86 million
on total revenue of INR108.46 million for 2012-13.
DRISHTI MOTORS: CARE Assigns B+ Rating to INR9.42cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Drishti
Motors Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 9.42 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Drishti Motors
Private Limited (DMP) is constrained by its weak financial risk
profile reflected by small scale of operations, low profitability
margins, leveraged capital structure with weak coverage indicators
and working capital intensive nature of operations. The ratings
are further constrained by intense competition, regional
concentration & linkage to fortunes of Hyundai Motors India
Limited.
The rating, however, favourably takes into account experience of
the partners in automobile dealership business and association
with an established brand name.
The ability of the company to increase the scale of operations
while improving profitability margins, improvement in capital
structure and efficient management of working capital requirements
would be the key rating sensitivities.
Drishti Motors Private Limited (DMP) was incorporated in May 2011,
by Mr Rakesh Jain, Mr Amit Jain, Ms Reema Jain and
Ms Bhawna Ramesh. The overall operations of company are looked
after mainly by Mr Amit Jain and Mr Rakesh Jain. The company
started its business operations in June 2012 and FY14 (refers to
the period April 1 to March 31) was the first full year of
operations. The company is having authorized dealership of Hyundai
Motors India Limited (HMIL) and operates a 3S facility (Sales
Spares, Service) along with two showrooms located each at
Bhadurgarh, Haryana and Jhajjar, Haryana. DMS caters to the nearby
regions of Delhi and Haryana. Some of the models sold by DMP are
Accent, Elantra, Eon, Santro, Getz, i10, Grand i10, i20, Verna
etc.
For FY14, DMP reported a total operating income of INR39.81 crore
with PBILDT and net loss of INR2.15 crore and INR0.02 crore
respectively as against total operating income of INR33.26 crore
with PBILDT and net loss of INR1.01 crore and INR0.22 crore
respectively in FY13. Furthermore, during FY15, the company has
achieved total operating income of INR33.75 crore till Jan. 31,
2015.
DUNN FOODS: CARE Revises Rating on INR40.71cr LT Loan to 'D'
------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Dunn
Foods Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 40.71 CARE D Revised from
CARE BB-
Rating Rationale
The revision in the rating of Dunn Foods Private Limited (DFPL)
factors in the ongoing delays in debt servicing due to the
stressed liquidity position.
Dunn Foods Private Limited (DFPL) was incorporated on April 17,
2003 by Mr Jai Prakash and Mr Lalit Kumar for manufacturing and
sale of biscuits. DFPL started its operations in 2005 and worked
for 30 months (upto middle of 2007) with "Job Work" arrangement
for M/s Surya Foods and Agro Pvt. Ltd. ('Priyagold' brand biscuit
manufacturer) and Britannia Industries to manufacture 'Britannia'
brand biscuits. Thereafter, in 2007 the unit was shut down by the
management. Subsequently, DFPL was taken over by the current
Managing Director, Mr Sunil Guglani, w.e.f. October 20,
2011. The company revived its operations from June 2012 at its
manufacturing facility in Baddi. As of March 31, 2014,
DFPL had an installed capacity is 1500 MT of biscuits per month on
a single shift basis.
DFPL registered a total operating income of INR114.48 crore during
FY14 (refers to the period April 1 to March 31) with a PBILDT of
INR7.59 crore and net loss of INR3.34 crore.
DWARIKESH SUGAR: ICRA Reaffirms B+ Rating on INR260cr Cash Loan
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of Dwarikesh Sugar
Industries Limited (DSIL) at [ICRA]B+ for INR228.81 crore term
loans, INR260.00 crore cash credit facilities, INR2.00 crore long
term non fund based facilities and INR109.18 crore unallocated
limits.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 228.81 [ICRA]B+
Cash Credit 260.00 [ICRA]B+
Long Term Non 2.00 [ICRA]B+
fund based
Unallocated Limits 109.18 [ICRA]B+
The rating action takes into account the improvement in the
financial profile of DSIL as reflected by higher profitability and
accruals during FY14 & 3MFY15, better liquidity position,
continued support from promoters by way of regular infusion of
funds and adequate debt servicing by DSIL. The improvement in
profitability has been mainly backed by relatively lower sugarcane
costs of INR276/qtl (as against INR279/qtl in SY14 & INR298/qtl in
SY13) and higher recovery rates of 10.5% in SY15 (as against
10.22% in SY14 & 9.81% in SY13) which have led to higher operating
margins of in FY14 and 3M FY15, despite downward pressure on sugar
realizations. Also, improved domestic sugar price scenario from
April 2015 onwards is likely to result in improved profitability,
cash accruals and debt coverage metrics in FY15 when compared to
the previous year, however the sustainability of the same needs to
be seen. ICRA also notes that the liquidity position of the
company is also adequate as reflected by unutilised working
capital limits. The rating continues to factor in the DSIL's long
track record in the sugar business, satisfactory operational
performance and forward integration into cogeneration and
distillery businesses, which will continue to provide alternate
revenue streams and some cushion against cyclicality in the sugar
business.
The rating is however constrained by the modest financial profile
of the company as reflected by modest operating profitability
(despite some improvement), weak capital structure and coverage
indicators in the past mainly because of substantial debt funded
capex, limited capacity utilization on account of relative paucity
of key raw material namely sugarcane, high cane costs (despite
concessions provided by UP govt. in SY15) and high volatility in
sugar prices. ICRA expects continued reliance of DSIL on promoters
for debt servicing in the near term given the high debt repayments
falling due in FY15 in relation to expected accruals. The rating
also continues to be constrained by risks arising out of the
inherent cyclicality in the sugar business, agro-climactic factors
and government policies governing cane pricing, sugar exports and
pricing of by-products.
Dwarikesh Sugar Industries Ltd., promoted by Mr. Gautam R.
Moraraka was incorporated in 1994 by setting up a 2500 TCD Sugar
plant in the sugar rich belt of Uttar Pradesh at Bundki village in
Bijnor District. The Company has been raising its crushing
capacity regularly and the same has since been increased to 21500
TCD. The company currently has three plants viz. Dwarikesh Nagar
(DN), Dwarikesh Puram (DP) & Dwarikesh Dham (DD). DN & DP are
located in Bijnor District of Uttar Pradesh and DD is located in
Bareilly District in Uttar Pradesh. Besides, the Company has
Cogeneration facilities of 17 MW at DN, 33 MW at DP & 36 MW at DD
unit. Out of the above, Company exports 8 MW from DN, 24 MW from
DP & 24 MW from DD unit to State Grid. The Company at its DN unit
has a distillery of 30000 litres per day, which is capable of
manufacturing Industrial Alcohol & Ethanol.
In FY14, DSIL has reported operating income of INR776.95 crore and
net loss of INR5.81 crore as against operating income of INR927.61
crore and net loss of INR19.36 crore in FY13. In 3M FY15, the
company reported operating income of INR152.59 crore and net loss
of INR23.44 crore.
ETHIX REALTORS: CRISIL Reaffirms B+ Rating on INR600MM LT Loan
--------------------------------------------------------------
CRISIL's rating continues to reflect Ethix Realtors Pvt Ltd's
(ERPL) exposure to project implementation risk, accentuated by the
initial stage of its project.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 600 CRISIL B+/Stable (Reaffirmed)
The rating also factors in the company's exposure to geographical
concentration risks, and vulnerability to cyclical demand inherent
to the Indian real estate sector. These rating weaknesses are
partially offset by the extensive experience of ERPL's promoter in
the real estate sector.
Outlook: Stable
CRISIL believes that ERPL will benefit from the extensive
experience of its promoter and its established position in the
real estate market in Pune (Maharashtra). The outlook may be
revised to 'Positive' if ERPL receives sizeable customer advances
for its ongoing project or large value unlocking of its
investments. Conversely, the outlook may be revised to 'Negative'
if ERPL's liquidity deteriorates either because of delays in
receipt of customer advances or significant project cost overruns.
Established in 2005, ERPL is the flagship company of the Ethix
group, which has investments in several real estate projects and
holds a significant land bank in Pune. ERPL is promoted by Mr.
Dharmesh Gathani, who has been active in the real estate segment
in Pune for over 10 years. The company has undertaken a large
residential project, Kool Homes, in Undri, Pune.
ETHIX VANDAN: CRISIL Reaffirms B+ Rating on INR250MM Term Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Ethix Vandan
(EV) continues to reflect EV's exposure to risks related to off-
take, funding and implementation, accentuated by low bookings and
advances; and vulnerability to cyclical demand inherent to the
Indian real estate sector. These rating weaknesses are partially
offset by the benefits that EV derives from its promoters'
extensive industry experience and their funding support.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 250 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EV will continue to benefit over the medium
term from the promoters' funding support and their extensive
experience in the real estate sector. The outlook may be revised
to 'Positive' if EV reports significant progress in project
completion, along with substantial bookings and customer advances,
resulting in sizeable cash inflows. Conversely, the outlook may be
revised to 'Negative' if EV's liquidity deteriorates because of
significantly slow ramp up in customer bookings, leading to modest
cash inflows or limited funding support from its affiliates.
EV, set up in 1995 as a partnership, is currently executing a
residential real estate project in Pune (Maharashtra). Project
execution commenced in June 2010 and is scheduled for completion
by December 31, 2015. The project, located at Erandwane, comprises
68 apartments (four 2-bedroom-hall-kitchen (BHK), 34 3-BHK, and 30
4-BHK apartments), in two buildings.
EUROKON GLOBAL: CRISIL Assigns B+ Rating to INR60MM Packing Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Eurokon Global Exports Pvt Ltd (EGE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Documentary 40 CRISIL A4
Bills Purchase
Packing Credit 60 CRISIL B+/Stable
The ratings reflect EGE's limited revenue diversity with high
customer and geographic concentration, large working capital
requirements, and weak financial risk profile marked by high
gearing levels and below average debt protection metrics. These
rating weaknesses are partially offset by the extensive experience
of EGE's promoters in the metal sheets components industry.
Outlook: Stable
CRISIL believes that EGE will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company records significantly high
revenue and profitability, while diversifying its customer base
and geographical reach, leading to improvement in its cash
accruals, or if its promoters infuse capital. Conversely, the
outlook may be revised to 'Negative' in case of considerable
decline in EGE's revenue or profitability or deterioration in its
working capital management or large debt-funded capital
expenditure, resulting in deterioration in the company's financial
risk profile, particularly liquidity.
Incorporated in 2009, EGE manufactures and exports sheet metal
components such as brackets and clamps which find application in
building hardware and furniture. The company is based in Faridabad
(Haryana).
EGE reported a net profit of INR4.1 million on net sales of INR256
million for 2013-14 (refers to financial year, April 1 to March
31), against a net profit of INR4.6 million on net sales of
INR188.8 million for 2012-13.
FAROUK SODAGAR: CARE Reaffirms B+/A4 Rating on INR100cr Loan
------------------------------------------------------------
CARE reaffirms ratings assigned to bank facilities of Farouk
Sodagar Darvesh & Company Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long/Short-term Bank 100 CARE B+/CARE A4
Facilities Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Farouk Sodagar
Darvesh & Company Private Ltd (FSDCPL) continue to be constrained
due to exposure to the volatility in prices of traded goods and
foreign exchange rates, high overall gearing, receivable risk on
account of elongated collection period and susceptibility of
business to downturn in the real estate sector.
The ratings, however, derive strength on account of the experience
of the promoters as well as well-established relations with the
customers and suppliers.
The ability of the company to improve the growth in operations as
well as manage the working capital requirements efficiently remain
the key rating sensitivities.
FSDCPL formed in 1974 (as a partnership firm and later converted
into a private limited company in 2008), is engaged in the trading
of timber and steel products, and belongs to the Darvesh family.
The Darvesh family is in the trading of timber products across
four generations since 1909. FSDCPL generally trades in timber and
timber products like plywood, blockboards, etc. The timber
products traded by FSDCPL have applications in residential
apartments, commercial spaces, modular kitchens, freight
containers and other construction works. FSDCPL imports all of its
timber requirements from countries like Burma, Africa, Malaysia,
Chile, New Zealand, Canada, etc.
In 2005, the company started trading in steel construction
materials, namely, steel bars, M.S. angles, structures, binding
wires, M.S. plates and M.S. pipes, having application in the
construction of different kinds of horizontal and vertical
concrete framework, ie, buildings, bridges, beams, flyovers,
pillars, slabs, etc. All purchases for the steel business are
procured locally.
FSDCPL's revenue has decreased over last 3 years (FY12-FY14
[refers to the period April 1 to March 31]) on account of slowdown
in the timber and steel trading business considering the slowdown
in construction activity during the period.
Along with dipping profit margins, the rising collection period is
also a concern for FSDCPL.
FSDCPL has requested the banker (Union Bank) to restructure the
existing Letter of Credit (LC) limit of INR100 crore (Rs.85
crore sublimit for cash credit (CC) / buyers credit (BC)) to a
term loan of INR85 crore for a tenure of 9 years with 2 years
interest and principal moratorium with the interest rate of 10.50%
p.a. and Line of credit of INR15 crore which can be availed as LC/
CC/ BC. As per the banker's requirement, FSDCPL would have to
infuse equity of INR3 crore for restructuring of debt. The banker
has expressed that the sanction of the aforesaid limits can be
expected by end of March 2015.
During FY14, the company earned an income of INR59.73 crore and
reported a profit after tax of INR1.12 crore as compared with the
total income of INR85.16 crore and a profit after tax of INR1.55
crore in FY13.
GAZEBO INDUSTRIES: CRISIL Ups Rating on INR7.5MM Cash Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its ratings on the long term facilities of
Gazebo industries Limited (GIL) to 'CRISIL B+/Stable' from 'CRISIL
B-/Stable' while reaffirming the short term bank facilities at
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 38.5 CRISIL A4 (Reaffirmed)
Cash Credit 7.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Packing Credit 105.0 CRISIL A4 (Reaffirmed)
The rating upgrade reflects an improvement in GIL's business risk
profile, marked by an increase in revenue and accruals. Revenue of
the company increased by around 80% year-on-year to reach INR437
million in 2013-14 on the back of robust increase in domestic
revenue. The company has already recorded revenues of around
INR440 million till mid-Feb 2015 and CRISIL expects the company to
record revenues of around INR550-600 million in 2014-15 on the
back of strong export orders. Operating profitability of the
company declined from around 4.1% in 2012-13 to 2.4% in 2013-14;
however, its cash accruals increased from INR2.7 million in 2012-
13 to INR10.6 million in 2013-14.
The rating also factors an improvement in liquidity profile of the
company on the back of a moderation in its working capital cycle,
marked by a decline in GCA from 236 days as on 31st March'13 to
178 days as on 31st March'14, on the back of decline in debtor and
inventory days. The liquidity profile of the company is also
supported through sanction of additional bank limits, reflected in
a moderate average utilization of bank limits at around 80 per
cent over the last 12 months ending December'14, and marginal
repayment obligations.
The ratings reflects GIL's susceptibility to volatility in raw
material prices, its large working capital requirements, and
average financial risk profile marked by modest debt protection
metrics. These strengths are partially offset by the extensive
experience of the company's promoters in the trading business.
Outlook: Stable
CRISIL believes GIL's operations will, over the medium term,
remain exposed to any changes in government policies pertaining to
its key export markets, or to any significant stretch in its
debtors. The outlook may be revised to 'Positive' in case of
sustained improvement in the company's scale of operations and
profitability, backed by prudent working capital management,
leading to improvement in its financial risk profile, especially
its liquidity. Conversely, the outlook may be revised to
'Negative' if GIL's financial risk profile, especially its
liquidity, weakens, its accruals decline significantly, its
working capital requirements increase substantially, or if it
undertakes a large debt-funded capital expenditure programme.
GIL was originally established in 1970 as a proprietorship firm,
Gazebo Industries; the firm was reconstituted as a private limited
company in 1988, and as a closely held public limited company with
the current name in 1991. GIL primarily trades in railway parts
and exports to African countries of Mozambique and Congo for the
past three years. It also trades in plastic granules, polyvinyl
chloride resin, and polypropylene woven sacks in the domestic
markets.
GIL has reported a profit after tax (PAT) of INR7.8 million on net
sales of INR437 million in 2013-14 as against PAT of INR0.8
million on net sales of INR244 million in 2012-13.
GLOBAL FARM: CARE Assigns B+ Rating to INR17.45cr LT Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B+/CARE A4' rating to the bank facilities of
Global Farm Fresh Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 17.45 CARE B+ Assigned
Short-term Bank Facilities 1.07 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Global Farm Fresh
Private Limited (GFFPL) are constrained by its short track record
with moderate scale of operations, financial risk profile marked
by fluctuating profitability, leveraged capital structure and
moderate debt coverage indicators, seasonal availability of raw
material (mango, guava) resulting into working capital-intensive
nature of business and presence in highly fragmented and
competitive industry.
The ratings, however, derive strength from experienced promoter,
growth in the total operating income during FY14 (refers to the
period April 1 to March 31), location advantage with presence in
major mango cultivation area and healthy demand outlook for
processed food.
The ability of the company to increase its scale of operations and
improve its profitability and capital structure in light of high
competition and manage its working capital requirement efficiently
are the key rating sensitivities.
Incorporated in 2010, Tirupathi-based GFFPL was promoted by Mr
Umapathi, Mr C. Srinivas Koushik, Mr C. Sukesh Kumar Reddy, Mr C.
Prem Chandar Reddy and Mr B. Ramesh Naidu. The company is engaged
in the processing of mango pulp, tomato paste, papaya pulp, guava
pulp and pineapple pulp. The company procures its entire raw
material (fruits and vegetables) from the local market, ie, from
local farmers and dealers. GFFPL sells its products in the
domestic market (across Andhra Pradesh, Maharashtra and
Karnataka). The company has started its full fledged commercial
operations from May 2012 with FY13 being 11 months of operations
and FY14 being first full year of operations. 90% of the total
revenue is generated through mango pulp.
During FY14, GFFPL reported a net profit of INR0.14 crore on a
total operating income of INR31.59 crore as against a profit of
INR0.25 crore on a total operating income of INR12.54 crore in
FY13.
J. P. ENTERPRISES: ICRA Suspends B+/A4 Rating on INR8.5cr Loan
--------------------------------------------------------------
ICRA has suspended the [ICRA]B+ and [ICRA]A4 ratings assigned to
the INR8.50 crore bank facilities of J. P. Enterprises. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
JUNAID ENTERPRISES: CRISIL Rates INR20MM Cash Loan at 'B'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank loan facilities of Junaid Enterprises (JE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Short Term 52 CRISIL A4
Bank Loan Facility
Proposed Long Term 10 CRISIL B/Stable
Bank Loan Facility
Bank Guarantee 18 CRISIL A4
Cash Credit 20 CRISIL B/Stable
The ratings reflect JE's large working capital requirements and
below-average financial risk profile, marked by high gearing.
These rating weaknesses are partially offset by the promoter's
extensive experience in the civil construction industry.
Outlook: Stable
CRISIL believes that JE 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 firm significantly increases its scale of operations and
profitability or reports better working capital management,
thereby improving its liquidity. Conversely, the outlook may be
revised to 'Negative' if the firm's financial risk profile,
particularly its liquidity, weakens because of a stretched working
capital cycle, or debt-funded capital expenditure plans, or
significantly low cash accruals.
JE was set up in 2000. The firm operates in the civil construction
segment, and constructs buildings for the government. The firm is
based in Ranchi (Jharkhand). The daily operations are being
managed by Mr. Akbar Ali and Mr. Agsar Ali.
KALINGA FERRO: CRISIL Reaffirms B+ Rating on INR221MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kalinga Ferro Ispat Pvt
Ltd (KFIPL) continue to reflect KFIPL's weak financial risk
profile, marked by a small net worth and weak debt protection
metrics, its limited track record, and its vulnerability to
cyclicality in the steel industry. These rating weaknesses are
partially offset by the extensive industry experience of the
company's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 221 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 10 CRISIL A4 (Reaffirmed)
Term Loan 61.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KFIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
substantial increase in its cash accruals and improves its working
capital management. Conversely, the outlook may be revised to
'Negative' if KFIPL generates less-than-expected cash accruals.
The outlook may also be revised to 'Negative' if it undertakes a
large debt-funded capital expenditure programme, or if there are
considerable delays in realisation of receivables, leading to
deterioration in its financial risk profile.
Update
In 2014-15 (refers to financial year, April 1 to March 31),
KFIPL's revenue is expected to grow to around INR700 million from
INR455 million in the previous year, backed by higher capacity
utilisation; the company is expected to maintain a revenue growth
of 10 to 15 per cent over the medium term. KFIPL's operating
margin remained low at around 7 per cent in 2014-15 due to the
increased proportion of income from trading operations; the margin
is expected to remain at around the same level over the medium
term.
Due to its initial year of operations, KFIPL's net worth was small
at around INR140 million as on March 31, 2014. Its gearing is
estimated at 1.6 to 1.7 times as on March 31, 2015, due to its
working-capital-intensive operations. Due to moderate gearing and
a low operating margin, the company's debt protection metrics have
remained weak, with interest coverage ratio estimated at around
1.5 times and net cash accruals to total debt ratio at around 8
per cent for 2014-15. KFIPL's financial risk profile is expected
to remain weak over the medium term due to low accretion to
reserves.
KFIPL's liquidity remains weak, with almost full utilisation of
its bank limits over the 12 months through December 2014 due to
working-capital-intensive operations. Its gross current assets
were high at over 200 days as on March 31, 2014, because of high
debtor and inventory days. The company is expected to generate
annual cash accruals of around INR19 million and does not have any
repayment obligations, over the medium term. Its liquidity is also
supported by unsecured loans from its promoters, the balance of
which stood at INR19 million as on March 31, 2014. KFIPL's
liquidity is expected to remain stretched over the medium term due
to large working capital requirements.
KFIPL was established in 2005; its corporate office is at Kolkata.
The company manufactures and trades in ferrochrome. Its
manufacturing unit is at Jajpur district (Odisha). KFIPL was
acquired in 2010 by Mr. Giriraj Ratan Binani. The company started
its commercial operations in July 2010 and has a capacity of 8052
tonnes per annum.
KANDARP CONSTRUCTION: CRISIL Cuts INR60M Cash Credit Rating to B+
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Kandarp Construction India Pvt Ltd (KCIPL) to 'CRISIL B+/Stable'
from 'CRISIL BB-/Stable', while assigning a rating of 'CRISIL A4'
to the company's short-term facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 135 CRISIL A4 (Assigned)
Cash Credit 60 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term 5 CRISIL B+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
The rating downgrade reflects CRISIL's belief that KCIPL's
liquidity will decline over the medium term as the cushion between
cash accruals and maturing debt reduces. The maturing debt is
expected to increase to around INR18 million from 2015-16 (refers
to financial year, April 1 to March 31). The strain on liquidity
is reflected in the company's sizeable borrowings'from Srei
Infrastructure Finance Ltd (Srei; INR83.2 million) and National
Small Industries Corporation (NSIC; INR28.9 million) as on March
31, 2014. KCIPL has also extended short-term loans of around INR46
million to related entity, Gangotri Enterprises Ltd (GEL) as on
March 31, 2014, adding to the strain on liquidity. Additionally,
the working capital requirements are expected to increase over the
medium term, driven by growth in revenue and increase in security
deposit or retention money to customer, keeping the liquidity
stretched over the medium term.
The ratings continue to reflect KCIPL's modest scale of, and
working capital intensity in operations in the fragmented civil
construction industry, with geographic concentration risks. These
rating weaknesses are partially offset by the promoter's extensive
experience in civil construction in Lucknow and moderate financial
risk profile, albeit constrained by small net worth.
Outlook: Stable
CRISIL believes that KCIPL will maintain its business risk profile
on the back of the extensive industry experience of its promoters,
and its healthy order book position. The outlook may be revised to
'Positive' in case the company scales up its operations
significantly while maintaining its moderate profitability leading
to better-than-expected cash accruals and improvement in
liquidity. Conversely the outlook may be revised to 'Negative' in
case KCIPL's financial risk profile, particularly liquidity,
deteriorates, most likely because of delay in project execution,
low cash accruals, fresh loans and advances to GEL, or any large
debt-funded capital expenditure.
KCIPL was incorporated in 2001 by Mr. Markandeya Shukla (promoter-
director) at Lucknow (Uttar Pradesh). The company undertakes all
kinds of civil construction contracts (roads, bridges, buildings,
and industrial sheds) for the state and central government
departments. The company currently undertakes civil construction
contracts for the railways, central government departments, and
state government departments of Uttar Pradesh and Madhya Pradesh.
For 2013-14, KCIPL reported a profit after tax (PAT) of INR15.1
million on net sales of INR381.9 million against PAT of INR13.6
million on net sales of INR345.5 million in 2012-13.
KARAN RICE: ICRA Assigns B+ Rating to INR8cr Term Loan
------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B+ to the INR15
crore fund based limits of Karan Rice Exports Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.00 [ICRA]B+;assigned
Term Loans 8.00 [ICRA]B+;assigned
ICRA's rating takes into account the highly competitive and low
value additive nature of the rice milling industry, which coupled
with KRE's limited pricing power, nascent stage of operations and
moderate scale of operations has resulted in relatively weak
profitability indicators. The rating also takes into account the
company's leveraged capital structure, with a high gearing and
TOL/TNW*. ICRA also factors in the vulnerability of the firm's
operations to agro climatic risks, which can affect the pricing
and availability of paddy. However, the rating positively factors
in the proximity of the mill to a major rice growing area which
results in easy availability of paddy and the stable demand
outlook given that India is a major consumer and exporter of rice.
Incorporated in 2013, Karan Rice Exports Private Limited is a
private limited company engaged in milling of rice and has an
installed capacity of 10 tonnes per hour (TPH). The company has
been promoted by Mr Karan Arora and his family members. The plant
commenced operations from October 2014.
KRE reported, on a provisional basis, a net profit of INR0.58
crore on an operating income of INR26.92 crore in its 3 months of
operations from October-December 2014.
LAKSH NATURAL: CRISIL Reaffirms B- Rating on INR50MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Laksh Natural Stones
Pvt Ltd (LNPL) continue to reflect LNPL's weak financial risk
profile, marked by high gearing and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B-/Stable (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5.7 CRISIL B-/Stable (Reaffirmed)
Standby Line of 5.0 CRISIL B-/Stable (Reaffirmed)
Credit
Term Loan 10.3 CRISIL B-/Stable (Reaffirmed)
The ratings also factor in the susceptibility of the company's
operating profit margin to volatility in raw material prices.
These rating weaknesses are partially offset by the extensive
experience of LNPL's promoters in the steel industry.
Outlook: Stable
CRISIL believes that LNPL will continue to benefit over the medium
term from its promoters' extensive industry experience; however
the company will remain dependent on timely infusion of funds by
its promoters to service its debt over this period, in the absence
of sufficient cash accruals. Its financial risk profile, marked by
high gearing and weak debt protection metrics, is expected to
remain weak over this period because of its working-capital-
intensive operations. The outlook may be revised to 'Positive' in
case of significant improvement in LNPL's operating margin,
resulting in sufficient cash accruals to service its debt.
Conversely, the outlook may be revised to 'Negative' if the
company's operating margin declines, further constraining its
financial risk profile, particularly its liquidity.
Set up in 2006 by Mr. Lalit Agarwal and his family members, LNPL
manufactures ingots at its facilities in Jaipur. The company
commenced commercial production of ingots in January 2010. The
plant's manufacturing capacity is 18,000 tonnes per annum, of
which 80 per cent is utilised. LNPL also trades in marbles, but
the turnover from this activity is miniscule, at around 1 per
cent.
LORD BUDDHA: CARE Assigns B+ Rating to INR21.16cr LT Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Lord
Buddha Shiksha Pratishthan.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 21.16 CARE B+ Assigned
The rating assigned to the bank facilities of Lord Buddha Shiksha
Pratishthan (LBSP) is constrained by its small scale of operations
with short track record in the education sector, challenges
involved in attracting students and retaining high quality faculty
in a competitive operating space along with regulatory risks. The
rating also factor in capital intensive nature of its operation
and moderately leveraged capital structure with moderate debt
protection metrics. The rating however, derives strength from the
experience of the management in the healthcare industry and its'
satisfactory infrastructure couple with moderate occupancy rate.
Ability to improve enrolment rate with simultaneous improvement in
the scale of operation, ability to attract student and qualified
faculty and improvement in capital structure will be the key
rating sensitivities.
Lord Buddha Shiksha Pratishthan (LBSP) was established in the year
2002 under the Societies Act 1860. The registered office of the
society is located in Saharsha, Bihar. The Society was established
with the primary objective to protect the interest of the people
of Buddha Minority Community and makes efforts to protect all
kinds of interest of the said community. Along with servicing
Buddha Minority Community the society also serves the people from
other community too. Since 2002, the society has been providing
medical aid services to the people, through its' 350 bed hospital
located in Saharsha, Bihar. In the year 2012, the society set up
its' medical education arm under the name of Lord Budhha Koshi
Medical College affiliated to B.N. Mandal University, in the same
premises of Lord Buddha Shiksha Pratishthan. This MCI (Medical
Council of India) approved college offers medical education (MBBS)
and has an intake of 100 students.
During FY14 (refers to the period April 1 to March 31), the entity
reported a SBILDT (Surplus before interest lease depreciation) of
INR3.18 crore (INR7.34 crore in FY13) and a net surplus of INR0.69
crore (INR1.86 crore in FY13) on total income from operations of
INR6.61 crore (INR9.50 crore in FY13).
MAHESH WOOD: ICRA Assigns B Rating to INR6.0cr Bank Loan
--------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B to the INR6.00
crore, fund based bank facilities of Mahesh Wood Products Private
Limited (MWPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund-based 6.00 [ICRA]B; Assigned
bank facilities
ICRA's ratings are constrained on account of MWPL's modest scale
of operations and its stretched liquidity position owing to
sizeable advances given to group companies. ICRA also takes note
of the high customer concentration risk as one client accounts for
about 90% of the revenues. Further, the rating is also constrained
on account of the company's modest profitability and its weak
financial profile as reflected in its high TOL/TNW and Total
debt/OPBDITA ratios. The ratings, however, favorably take into
account the extensive experience of the promoters, of more than
three decades, in the Kattha manufacturing business.
Going forward, the ability of the company to scale up its
operations, diversify its client portfolio and recover its
advances shall be the key rating sensitivities.
MWPL, a closely held company incorporated in 1978 is engaged in
manufacturing Kattha and Cutch at its manufacturing facility in
Sonipat, Haryana. The products of the company are used by
manufacturers of Pan Masala. The company is managed by Mr Mahesh
Mehta and Mrs Ram Kumari Mehta. The company is a part of the
Mahesh Mehta group, which has interests in other sectors including
real estate, hotels and carpet retailing.
MWPL reported a net profit of INR0.38 crore on an operating income
of INR39.62 crore in FY 2013-14, as against a net profit of
INR0.29 crore on an operating income of INR33.47 crore in the
previous year.
MAKRO CAST: CARE Reaffirms D Rating on INR36cr LT Bank Loan
-----------------------------------------------------------
CARE reaffirms the rating assigned to bank facilities of Makro
Cast Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 36 CARE D Reaffirmed
Rating Rationale
The rating reaffirmation takes into account continued delays in
servicing of debt obligation on account of stressed liquidity
position and shutdown in operations in FY14 (refers to period
April 1 to March 31).
Makro Cast Private Limited (MCPL), was established (in 2004) to
manufacture specialized castings used primarily in the automobile
industry, power and other engineering companies. The company's
foundry unit is located at Vijayawada and has a manufacturing
capacity of 1,200 Metric Tonnes Per Month (MTPM).
During FY13 (refers to the period April 01 to March 31), MCPL
reported a total income of INR69.67 crore and a PAT of INR1.26
crore.
MANGALDEEP COLD: ICRA Assigns B Rating to INR4.10cr Term Loan
-------------------------------------------------------------
The rating of [ICRA]B has been assigned to the INR4.10 crore term
loans and INR2.85 crore cash credit facility of Mangaldeep Cold
Storage.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit facility 2.85 [ICRA]B assigned
Term Loan 4.10 [ICRA]B assigned
The rating assigned is constrained by the small envisaged scale of
operations of the firm, high working capital intensity of
operations and the exposure of its profitability to any
significant fall in potato prices. Further the rating assigned
also takes into account the high reliance on debt for project
funding thereby exposing the firm to possible stress on debt
servicing capability in case of slower than expected ramp up of
cash flows. Further, ICRA takes into consideration that MCS is a
partnership firm and any significant withdrawals from the capital
account could adversely impact its net worth and thereby the
capital structure. The rating, however, favourably considers the
experience of partners in potato trading and their association
with other cold storage firms; and the favourable location of the
unit in Deesa (Gujarat), an area with high output of potato.
Incorporated in May 2014, Mangaldeep Cold Storage (MCS) is engaged
in providing cold storage facility to potato farmers and traders
on a rental basis and has commenced commercial operations from
20th February 2015. The facility of the firm is located at Deesa,
Gujarat having storage capacity of 158,000 bags each weighing 50
Kg (around 7900 MT of potatoes). The firm is promoted by six
partners who have a long standing experience in potato farming and
trading business.
NATANI ROLLING: CARE Reaffirms B Rating on INR5cr LT Bank Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Natani Rolling Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.00 CARE B Reaffirmed
Rating Rationale
The rating of Natani Rolling Mills Private Limited (NRMPL)
continues to remain constrained on account of its weak financial
risk profile marked by thin profitability, weak solvency and
stressed liquidity position. The rating is further constrained on
account of the vulnerability of margins to fluctuation in the
prices of raw material and its presence in a highly fragmented and
competitive industry. These weaknesses partially offset to an
extent by experienced management in the industry.
The ability of the company to increase its scale of operations
with improvement in profitability as well as better management of
the working capital shall be the key rating sensitivity.
NRMPL was promoted by Mr B.L. Natani along with his son, Mr.
Rajesh Natani in 1995. NRMPL is engaged in the manufacturing of
structural items like Mild Steels (MS) angles and bars by
processing of M.S. ingots at its plant located at Jaipur,
Rajasthan. The plant of the company has a total installed capacity
of 12000 Metric Tonne Per Annum (MTPA) as on March 31, 2014. NRMPL
procures its raw material from the nearby units located in the
local market and supplies its product in the local market of
Rajasthan.
During FY14, (refers to the period April 1 to March 31), NRMPL has
reported a total operating income of INR 22.41 crore (FY13:
INR34.36 crore) with a PAT of INR0.02 crore (FY13 : INR0.09
crore).
NAV ENGINEERS: CRISIL Cuts Rating on INR49.7MM Term Loan to D
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Nav Engineers Private Limited (NEPL) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 11 CRISIL D (Downgraded from
'CRISIL B/Stable')
Letter of Credit 7.4 CRISIL D (Downgraded from
'CRISIL A4')
Term Loan 49.7 CRISIL D (Downgraded from
'CRISIL B/Stable')
Working Capital 3.5 CRISIL D (Downgraded from
Term Loan 'CRISIL B/Stable')
The rating downgrade reflects instances of delay by NEPL in
servicing its debt; the delays have been caused by significant
deterioration in NEPL's liquidity, mainly on account of stretched
working capital cycle.
The rating downgrade also reflects its average financial risk
profile and susceptibility to intense competition in the
automotive dealership market. However, these rating weaknesses are
partially offset by established presence in the automotive
dealership industry and promoters' extensive industry experience.
NEPL was incorporated in 1988, promoted by Mr. Navin Gupta. It
manufactures woven and printed labels used in the garment and home
furnishing segments. The company also undertakes schiffli
embroidery on a job-work basis. Its plant is in Noida (Uttar
Pradesh).
PARTAP WIRE: CRISIL Reaffirms B Rating on INR60MM Cash Credit
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Partap Wire India Pvt
Ltd (PWIL) continue to reflect the company's weak financial risk
profile and its working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B/Stable (Reaffirmed)
Term Loan 3 CRISIL B/Stable (Reaffirmed)
The ratings also factor in the susceptibility of PWIL's margins to
fluctuations in raw material prices and its exposure to risks
related to intense competition in the fragmented industry. These
rating weaknesses are partially offset by the extensive industry
experience of the company's promoters.
For arriving at the ratings, CRISIL has discontinued its approach
of consolidation of PWIL with PM Industry (PMI) as the operations
of PMI were closed down in 2013-14 (refers to financial year,
April 1 to March 31). Therefore, CRISIL has considered PWIL on a
standalone basis.
Outlook: Stable
CRISIL believes that PWIL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports
higher-than-expected sales and if there is improvement in its
financial risk profile driven most likely by increase in its
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' if PWIL's financial risk profile
deteriorates, most likely because of lower-than-anticipated
profitability, large working capital requirements, or large debt-
funded capital expenditure.
PWIL was established in 1991. The company manufactures galvanised
iron wires, wire mesh, and barbed wires at its production facility
in Kangra (Himachal Pradesh). It is managed by Mr. Surjit Mahajan
and his sister-in-law, Ms. Aruna Mahajan. PMI, a proprietorship
firm, manufactures the same products at its facility in Kangra. It
is managed by Mr. Vishal Mahajan.
PRERANA PRATISTHAN: CRISIL Reaffirms D Rating on INR79.9MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Prerana
Pratisthan (PP) continues to reflect instances of delay by PP in
servicing its term debt; the delays have been caused by the
trust's weak liquidity, driven by delayed receipt of subsidies and
student fees.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8 CRISIL D (Reaffirmed)
Funded Interest
Term Loan 4.3 CRISIL D (Reaffirmed)
Term Loan 79.9 CRISIL D (Reaffirmed)
Proposed Long Term 27.8 CRISIL D (Reaffirmed)
Bank Loan Facility
The rating reflects PP's small scale of operations, its exposure
to regulatory risks associated with educational institutions and a
weak financial risk profile, marked by negative net worth and
inadequate debt protection metrics.These rating weaknesses are
partially offset by the extensive industry experience of its
trustees, and the healthy demand prospects for the education
sector.
PP, based in Pune (Maharashtra) was established in 2006 by Mr. S P
Deshmukh. The trust operates an institute, 'Universal College of
Engineering and Research' and at present it offers engineering
courses in five streams as well as a diploma in the polytechnic
segment. The current total intake capacity of the institute is
1520 students.
R & B DENIMS: ICRA Reaffirms B+ Rating to INR36.35cr Term Loan
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR54.35 crore2 (Reduced from INR63.19 crore) Fund based (Term
Loan and Cash Credit) bank facilities of R & B Denims Limited.
ICRA has also reaffirmed the short term rating of [ICRA]A4 to the
INR1.81 crore Non-Fund based (Bank Guarantee) bank facilities of
RBDL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 36.35 [ICRA]B+/Reaffirmed
Cash Credit 18.00 [ICRA]B+/Reaffirmed
Bank Guarantee 1.81 [ICRA]A4/Reaffirmed
The reaffirmation of ratings takes into consideration long
experience of RBDL's promoters in the textile industry. The
ratings also derive comfort from the healthy growth in top line
witnessed in FY14, supported by improved capacity utilization. The
ratings are however constrained by leveraged capital structure,
coupled with modest profitability levels has led to nominal
accruals and stretched debt coverage indicators. Further, ICRA
takes note of the limited value adding and intensely competitive
nature of denim manufacturing business, which is expected to keep
the profitability levels under pressure. ICRA also takes note of
the cyclicality inherent in the textile industry, which is likely
to keep RBDL's cash flows volatile.
For the financial year ending March 2014, RBDL reported an
operating income of INR105.32 crore and a net profit of INR0.35
crore as compared to operating income of INR57.09 crore and net
profit of INR0.14 crore in the previous year. The company has
recorded an operating income of INR77.28 crore and a net profit of
INR0.04 crore during 6M-FY15 (Provisional).
Incorporated in 2010, RBDL is engaged in the manufacturing of
denim. The manufacturing facility commenced operations with 48
air-jet looms, and an installed capacity of 1.25 crore metres per
annum, which has since been augmented to 96 air-jet looms and 2
crore metres per annum installed capacity in FY14. The company
markets its product in the states of Delhi, Maharashtra, Gujarat,
West Bengal & Karnataka through its dealers.
REFRIGERATED DISTRIBUTORS: CRISIL Reaffirms B+ INR40M Loan Rating
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Refrigerated
Distributors Pvt Ltd (RDPL) continue to reflect the susceptibility
of RDPL's operating margin to volatility in raw material prices
and foreign exchange rates.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 40 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of RDPL's promoters in the sea food industry and the
company's moderate financial risk profile, marked by robust debt
protection metrics and average gearing.
Outlook: Stable
CRISIL believes that RDPL will continue to benefit from the
extensive experience of its promoters in the seafood industry. The
outlook may be revised to 'Positive' if the company reports
higher-than-expected cash accruals, driven by increase in its
scale of operations and higher profitability, resulting in
improvement in its business risk profile. Conversely, the outlook
may be revised to 'Negative' in case of deterioration in RDPL's
financial risk profile, particularly liquidity, driven by decline
in its operating margins, or elongation in the working capital
cycle or larger-than-expected debt funded capital expenditure
(capex) plans.
Update
For 2013-14 (refers to financial year, April 1 to March 31),
RDPL's revenues were INR395 million, marginally lower than that in
preceding year, because of lower realisation from its product
'processed surimi'. For the first nine months through
December 31, 2014, the company has reported revenues of around
INR210 million. RDPL is expected to register modest revenue growth
over the medium term driven by steady demand for its product.
RDPL's profitability also dipped to around 4.6 per cent during
2013-14 from 10.7 per cent in 2012-13, because of increase in the
prices of its key raw material, i.e. fish. The company's operating
margins are expected to remain in the range of 5 to 5.5 per cent
as raw material prices are expected to remain stable over the
medium term.
The company has moderate working capital requirements as reflected
in its gross current assets (GCA) of 92 days as on March 31, 2014.
The GCA's are primarily driven by its moderate receivable
collection cycle and inventory. These working capital requirements
are met through extended credit from suppliers and external
borrowings.
RDPL's financial risk profile has remained moderate with modest
net worth, average gearing and robust debt protection metrics. The
company's gearing is estimated at below 1 time as on March 31,
201; however, the same is expected to deteriorate over the medium
term account of debt funded capex plans. The interest coverage
was robust at around 2.5 times for 2013-14 and it is expected to
remain robust over the medium term. Despite its modest cash
accruals, the term debt is backed by fixed deposits, thus
providing cushion to its liquidity. Furthermore, its bank lines
were utilised at an average of around 80 per cent for 12 months
ended February 2015.
Incorporated in 1996, RDPL is engaged in processing and export of
surimi and fishes. The company is currently managed by Mr. Nisar
Naik and Mr. Asif Naik. The company has its processing facilities
at Navi Mumbai (Maharashtra).
RHYTHM LAND: CRISIL Reaffirms B+ Rating on INR550MM LT Loan
-----------------------------------------------------------
CRISIL's rating on the bank facilities of Rhythm Land Developers
Pvt Ltd (RLDPL) continues to reflect its exposure to project
implementation risk accentuated by the initial stage of its
project, and vulnerability to cyclical demand inherent to the
Indian real estate sector. These rating weaknesses are partially
offset by the promoters' extensive experience in the real estate
sector.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 550 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that RLDPL will benefit from its promoters'
extensive experience in the real estate market in Pune
(Maharashtra). The outlook may be revised to 'Positive' if the
company improves its cash accruals with sizeable customer bookings
along with project completion without any cost overruns.
Conversely, the outlook may be revised to 'Negative' in case of
significant cost overruns in the project or significantly slow
ramp-up in customer bookings, resulting in inadequate liquidity.
RLDPL was set up in 1995, and is currently executing a residential
real estate project in Handewadi (Pune). RLDPL is promoted by Mr.
Dharmesh Gathani, Mr. Gautam Budhrani, and Mr. Ramesh Bhatia.
SHYAM GINNING: CRISIL Suspends B Rating on INR300MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Shyam
Ginning and Pressing Pvt Ltd (SGPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 300 CRISIL B/Stable Suspended
The suspension of rating is on account of non-cooperation by SGPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SGPPL is yet to
provide adequate information to enable CRISIL to assess SGPPL'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'.
SGPPL, located at Rajkot (Gujarat), is promoted by Mr. Bharatbhai
Wala. The company is engaged in the ginning and pressing of raw
cotton to make cotton bales. The company sells the cotton bales to
various traders and the cotton seed is sold to various oil mills
in the vicinity of the plant.
SIDDHI REFOILS: CARE Lowers Rating on INR50.50cr ST Loan to D
-------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Siddhi Refoils & Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 38.02 'CARE D' Revised from
'CARE BB'
Short-term Bank Facilities 50.50 'CARE D' Revised from
'CARE A4'
Rating Rationale
The revision in ratings is on account of the ongoing delays in
debt servicing and overdrawls in working capital limits.
Incorporated in March 2010, Siddhi Refoils & Industries Pvt. Ltd
(SRIPL) is a flagship company belonging to the Siddhi Group
promoted by Sri Nawal Kishore Banka and his family members. The
company is engaged in refining and processing of Edible Oil with
an installed capacity of 250 tonnes per day (TPD) and
fractionation of RBD Palm Oil with an installed capacity of 400
TPD. Further the company also has a captive power plant of 2MW.
The manufacturing facility of the company is located in Hazipur,
Bihar. The product of the company is sold under the brand name of
'Siddhi Gold'.
SK AGROS: ICRA Assigns B Rating to INR6cr Cash Credit Limit
-----------------------------------------------------------
ICRA has assigned its [ICRA]B rating to the INR6.00 crore cash
credit limits and INR4.00 crore unallocated fund based limits of
SK Agros (SKA).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 6.00 [ICRA]B; Assigned
Unallocated Fund 4.00 [ICRA]B; Assigned
Based Limits
ICRA's rating is constrained by SKA's modest scale of operations
in the fragmented and competitive rice industry which results in
weak profitability. The ratings also take into account the high
working capital intensity due to high inventory levels, this has
necessitated reliance on bank borrowings resulting in elevated
gearing; this coupled with its weak profitability has resulted in
weak coverage indicators. The rating also takes into account the
risks inherent in a partnership firm like limited ability to raise
equity capital, risk of dissolution etc. However, the rating
favourably factors in the proximity of the mill to a major rice
growing area which results in easy availability of paddy and
stable demand outlook for rice given that India is a major
consumer and exporter of rice.
SKA is a partnership firm, engaged in the business of milling,
processing and selling of basmati rice, and has a fully automated
plant at Fazilka (Punjab) which has a milling capacity of 4 tonnes
per hour. The by-products of basmati rice viz husk, rice bran and
'phak' are sold in the domestic market. At present, there are
three partners in the firm -- Mr. Aarish Kalra, Mr. Suman Kumar,
and Mr. Amit Kumar with a profit sharing ratio of 50%, 25% and 25%
respectively.
The firm reported a net profit of INR0.06 crore on an operating
income (OI) of INR15.95 crore in FY14, as against a net profit of
INR0.05 crore on an OI of INR5.04 crore in the previous year.
SRI VENKATRAM: ICRA Upgrades Rating on INR23cr LT Loan to C+
------------------------------------------------------------
ICRA has upgraded the long-term rating to [ICRA]C+ from [ICRA]D
for the INR2.14 crore (reduced from INR9.92) term loan facilities,
INR23.00 crore fund based facilities and the INR0.75 crore non-
fund based facilities of Sri Venkatram Spinners Private Limited.
ICRA has also upgraded the short-term rating to [ICRA]A4 from
[ICRA]D for the INR7.00 crore non-fund based facilities and the
INR3.50 crore non-fund based facilities(sub-limit) of SVSPL. ICRA
has also assigned a long term rating of [ICRA]C+ for the INR7.78
crore proposed facilities of SVSPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT - Term loan 2.14 [ICRA]C+/upgraded
Facilities
LT - Fund based 23.00 [ICRA]C+/upgraded
Facilities
LT Non fund based 0.75 [ICRA]C+/upgraded
Facilities
LT- Proposed facilities 7.78 [ICRA]C+/assigned
ST- Non fund based 7.00 [ICRA]A4/upgraded
facilities
ST- Non Fund based (3.50) [ICRA]A4/upgraded
facilities (sub-limit)
The rating revision considers the regularisation in debt servicing
by the company, supported by higher accruals from the business
with improvement in the power scenario and infusion of unsecured
loans from promoters to support the liquidity position. The
ratings, however, remains constrained by the stretched capital
structure of the company characterized by high gearing and weak
coverage indicators on the back of lower accruals from the
business in the past and takes note of the stretched receivable
position of the Company impacting its working capital intensity.
The ratings also take cognizance of the Company's moderate scale
of operations and the intense competition in the business which
limits pricing flexibility thereby exposing earnings to
fluctuations in raw material prices. ICRA also takes note of the
moderation in debt repayment obligations (existing debt) going
forward, compared to obligations in last three years, which also
mitigates the liquidity pressure to an extent.
Sri Venkatram Spinners Private Limited (SVSPL), promoted by
Mr.S.Srinivasan and his family, was started with a spindle
capacity of 2,160 in 1992. Currently SVSPL has a capacity of
41,944 spindles, of which 22,368 spindles were added in 2007.
Further, SVSPL has installed 360 rotors in 2007. The Company
manufactures and sells cotton yarn in the coarser and medium
counts, with 20s to 60s contributing to major portion of revenues.
SVSPL has windmill with a capacity of 1.65 MW installed in
Surandai village near Tenkasi in Tamil Nadu.
The Company reported a net profit of INR0.7 crore on operating
income of INR110.0 crore during 2013-14, as against a net profit
of INR0.1 crore on operating income of INR77.7 crore during the
corresponding previous fiscal year.
WRC ENGINEERING: CRISIL Reaffirms B Rating on INR28MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of WRC Engineering Company
Private Ltd. (WRC) continue to reflect WRC's small scale of
operations and average financial risk profile on account of large
working capital requirements. These rating weaknesses are
partially offset by the extensive industry experience of WRC's
promoters and moderate order book, reflecting medium term revenue
visibility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Reaffirmed)
Cash Credit 28 CRISIL B/Stable (Reaffirmed)
Corporate Loan 6.5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term 26.3 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Standby Line of
Credit 4.0 CRISIL B/Stable (Reaffirmed)
Term Loan 5.2 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that WRC will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of significant ramp
up in WRC's revenues and profitability leading to improvement in
its financial risk profile, or improvement in working capital
management. Conversely, the outlook may be revised to 'Negative'
in case the company's profitability or revenues decline, resulting
in lower-than-expected cash accruals, leading to deterioration of
its financial risk profile or in case of more-than-expected
stretch in working capital requirements.
WRC, incorporated in 2007, manufactures dust control systems and
dust suppressor systems that find application in industrial
plants. The company's facility is located in Anand (Gujarat) and
the day-to-day operations are managed by Mr. Hemant Amin.
=================
I N D O N E S I A
=================
(PERSERO) ASURANSI: Fitch Assigns 'BB+' IFS Rating
--------------------------------------------------
Fitch Ratings Indonesia has assigned PT (Persero) Asuransi Kredit
Indonesia (Askrindo) a National Insurer Financial Strength (IFS)
Rating of 'AA+(idn)'. Fitch Ratings has also assigned an IFS
Rating of 'BB+'. The Outlooks are Stable.
'AA' National IFS Ratings denote a very strong capacity to meet
policyholder obligations relative to all other obligations or
issuers in the same country, across all industries and obligation
types. The risk of ceased or interrupted payments differs only
slightly from the country's highest rated obligations or issuers.
KEY RATING DRIVERS
The rating reflects Askrindo's 100% state ownership and history of
government support through a series of capital injections over the
last five years. It also reflects Askrindo's role as one of the
two institutions mandated to provide credit guarantee services in
the form of Kredit Usaha Rakyat (KUR), or People's Business
Credit. Askrindo was established mainly to support micro, small
and medium enterprises. The rating also considers Askrindo's high
business concentration risk - the company entire book of business
is sourced in locally, which makes it vulnerable to Indonesia's
economic conditions.
Askrindo has a strong market presence in the Indonesian credit
insurance market, healthy operating performance and strong
capitalization. The company's operating profitability has improved
since 2011 following enhanced performance of its KUR business. The
KUR business is potentially volatile given the higher inherent
loan risks compared with the non-KUR business, but Fitch expects
the company to constantly evaluate the impact of the terms and
conditions of its KUR standard operating procedures on its
underwriting results so as to maintain sound operating
profitability. The company posted a combined ratio of 83.9% at
end-2014 based on its consolidated financials.
The KUR business accounted for more than 50% of Askrindo's total
premium income at end-2014. The government reviews the KUR program
periodically and the company is in transition to a new version of
the program. Fitch believes that the continuance of the KUR
program or similar will support the company's profile.
In view of the company's high risk retention, which averaged more
than 95% of total gross written premiums over the last five years,
Fitch expects Askrindo to gradually enhance the sophistication of
its risk management and maintain its sound capital buffer to
support its underwriting and business expansion. The company's
capitalization, as measured by its risk-based capitalization (RBC)
ratio, is very strong. Its RBC ratio was 749.5% at end-2014, much
higher than the minimum regulatory requirement of 120%.
The insurer adopts a prudent and highly liquid investment mix.
Cash equivalents and fixed-income instruments have consistently
formed more than 80% of the company's total invested assets over
the last five years.
RATING SENSITIVITIES
Key rating triggers for a downgrade include weakening of
government support or downgrade of Indonesia's sovereign rating
(BBB-/Stable). A significant deterioration in Askrindo's financial
fundamentals such as weakening market franchise, financial
performance and capitalization relative to its business profile,
with combined ratio above 100% and RBC ratio below 300% on a
prolonged basis could also lead to a downgrade. A rating upgrade
is unlikely in the near term.
====================
N E W Z E A L A N D
====================
HARVESTPRO NZ: Failure Puts Jobs at Risk, Industry Group Says
-------------------------------------------------------------
According to a statement released by the Forest Industry
Contractors Association, the receivership of one of New Zealand's
largest forest contractors, Harvestpro, will send a shock wave
through rural communities as their workers are made redundant,
Forest Industry Contractors Association said. The fragile rural
economy in Northland, of all places, did not need this business
blow. Many skilled people will be put out of work. The industry
association for forest contracting is concerned this failure and
job losses could be repeated and wants others to come forward if
they need assistance to keep afloat.
Just as this local failure came to light the same thing appears to
be happening in related markets on Canada's west coast. Operating
losses by contractors of over half a million dollars in six months
have been reported in British Columbia (BC). Last week the second
massive sale of forest contractor equipment was held in the space
of just six months. This time, over 420 pieces were sold at
auction and 95 per cent of it was equipment from logging
contractors in coastal BC.
"This business failure highlights how fragile forest contracting
is right now in many places," says the CEO of the Forest Industry
Contractors Association (FICA), John Stulen. He says, "Here in New
Zealand there's been pressure from forest companies and export
markets on forest contractors for months now and unfortunately one
company has caved in. Many workers' jobs are at risk here and in
other rural regions."
"Low export prices and high log stocks in China are only part of
the problem."
"Higher capital costs have come with a rapid change to mechanised
forest harvesting. The message we are hearing is that contract
rates are not keeping up with the true cost of the equipment being
employed to do the work more safely."
The collapse of this large contracting company sheds some light on
a larger problem. Many more smaller forest contractors in our
association have been complaining of the undue pressure they are
under. Many contractor principals in forestry feel they have
nowhere else to go with their skills, so are just hanging on in
the hope business conditions will improve. FICA has systems in
place to offer financial advice to business owners finding
conditions tough. Timely advice can give them options and
alternatives to shutting up shop and putting more workers' jobs in
jeopardy.
"One of the problems is that forest contractors carry all of the
risk but have none of the power in our industry."
"Among our members we've already seen several other large
contractors walk away from contracts as the prices offered were
just a recipe for the very financial disaster we're now seeing,"
says Mr. Stulen.
"Both outcomes put their workers at risk of redundancy."
"Pressure has come from the top for the need to purchase more
mechanised harvesting equipment," says Mr. Stulen, "however
contract rates are not being lifted to compensate."
"With the tough market conditions FICA wants to offer support to
other contractors who feel they are in tough financial positions.
Any forest contractors should contact us as soon as possible
before they or their business suffers any further losses.
Financially stressed contractors and workers are also at risk of
having accidents and that's the not an outcome that anyone wants."
NORTHERN CREST: Robt Jones Tries to Get Access to Audiotape
-----------------------------------------------------------
Hamish Fletcher at The New Zealand Herald reports that multi-
millionaire Sir Bob Jones' company, from which liquidators are
trying to claw back NZ$750,000, has tried to get access to a tape
recording which a judge is not even sure the High Court is
holding.
If the tape and its transcript are with the court files, then they
should not be, Justice Paul Heath said on March 12.
The Herald relates that Robt Jones Holdings is in a stoush over
whether about NZ$750,000 it received from Northern Crest
Investments should be set aside by that firm's liquidators.
Northern Crest is a failed wing of the Blue Chip empire, which
collapsed in 2008 owing millions of dollars to investors, the
report notes.
It leased a floor in a central Auckland office tower from Robt
Jones Holdings but left the premises in August 2008, halfway
through a six-year lease, according to the report.
The Herald recalls that Robt Jones Holdings, which calls itself
New Zealand's largest private CBD office building owner, got a
High Court judgment in September 2009 against Northern Crest for
about NZ$300,000, which was paid after liquidation proceedings
were brought.
The now-failed firm then settled other debts with the property
mogul's company before moving operations across the Tasman in
November 2010, the report relates.
The Herald says Northern Crest liquidators hope the dispute over
the NZ$750,000 will get to court in the middle of this year.
According to the report, the tape was a recorded discussion
between former Lombard chief executive Michael Reeves and Northern
Crest liquidator Steve Lawrence. The Herald relates that Mr.
Reeves has said he advised Northern Crest's directors on corporate
governance. The recording emerged during a case where Australian
firm Manifest Capital Management had a AUD3 million claim admitted
into Northern Crest liquidation, the report relays.
The report adds that the judge said the tape and transcript were
not formally put as evidence before him in the Manifest case.
"Whether they ended up on the court file is something I do not
know but they should not be there if they did," Justice Heath, as
cited by the Herald, said.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE WOMEN: Files For Corporate Rehabilitation
----------------------------------------------------
Doris C. Dumlao at Inquirer.net reports that the 100-year-old
matriarch of the Benitez family has filed a petition for the
involuntary rehabilitation of Philippine Women's University (PWU),
seeking to prevent irate creditor STI Holdings from seizing assets
after a soured partnership.
According to the report, PWU said in a statement that the
university chair Helena Benitez -- also a long-time creditor of
the university -- filed a petition for corporate rehabilitation at
the Manila Regional Trial Court "in a bid to preserve its
operations after STI Holdings initiated foreclosure proceedings
against the university."
Inquirer.net relates that the matriarch also said that the
foreclosure proceedings would prevent PWU from paying its debts
and would render it insolvent. "The foreclosure proceedings
. . . will also drastically disrupt and stop PWU's school
operations," Inquirer.net quotes Ms. Benitez as saying.
Inquirer.net says STI Holdings recently initiated extra-judicial
foreclosure proceedings against PWU covering its Taft Ave. and
Indiana St. campuses in Manila, the Jose Abad Santos Memorial
School (JASMS) campus on Edsa, Quezon City and another property in
Davao City.
"The foreclosure and sale of any of the properties will extremely
prejudice PWU and endanger its existence or survival since the
properties are vital to its operations and rehabilitation," Ms.
Benitez said, the report relays.
PWU owes Benitez PHP33.6 million, the report discloses citing
PWU's statement. Inquirer.net adds that the matriarch also
submitted a proposed rehabilitation plan for PWU, the goal of
which was to enable the university to meet its obligations to its
creditors, including STI, without disrupting the conduct of its
business.
It involves a rehabilitation period providing for the sale of
assets to cover part of the debts of PWU, while the rest will be
paid in accordance with projected cash flow over a 10-year period,
the report says.
It was noted that PWU was a non-stock, not-for-profit institution,
which has been supported by the Benitez family for the past 96
years, Inquirer.net discloses. In 2011, STI helped PWU by assuming
its debt to Banco de Oro amounting to
PHP223 million. In December 2014, STI declared the university in
default of its obligations and initiated foreclosure proceedings
against PWU, the report recalls.
The Philippine Women's University is a private non-stock, non-
profit, non-sectarian educational institution based in Manila.
*********
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, and Peter A. Chapman,
Editors.
Copyright 2015. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***