/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/150610.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, June 10, 2015, Vol. 18, No. 113 Headlines A U S T R A L I A BBY HOLDINGS: AIMS Financial Acquires Collapsed Stockbroker INDIGO PROPERTIES: First Creditors' Meeting Set For June 17 JAG GLOBAL: First Creditors' Meeting Set For June 18 SHERWIN IRON: Receivers Seek Buyers For Assets H O N G K O N G LAI FUNG: Fitch Affirms 'BB-' Issuer Default Ratings I N D I A ALANG METAL: CRISIL Lowers Rating on INR195MM Cash Loan to 'D' AMRIT ENGINEERING: CRISIL Suspends B- Rating on INR55MM Loan ANALOGICS TECH: Ind-Ra Assigns 'IND BB-' LT Issuer Rating ANIIRUDH CIVIL: CRISIL Reaffirms 'D' Rating on INR30MM Cash Loan ANNAPURNA VYAPAAR: CRISIL Reaffirms B+ Rating on INR30MM Loan ANUSHREE INFRASTRUCTURE: CRISIL Rates INR30MM Cash Loan at 'B' ASG LEATHER: CRISIL Ups Rating on INR70MM Packing Loan to B+ ATAM MANOHAR: CRISIL Suspends B+ Rating on INR75MM Cash Loan AVANI VANIJYA: Ind-Ra Suspends 'IND D' Rating on INR110MM Loan B.MELARAM: ICRA Reaffirms B+ Rating on INR7cr Cash Credit BHOROSHA RICE: CRISIL Reaffirms B- Rating on INR95MM Cash Loan CANAAN ENGINEERING: CRISIL Reaffirms 'D' Rating on INR71.7MM Loan DIGNITY INNOVATIONS: CRISIL Assigns B- Rating to INR40MM Loan EMERALD INDUSTRIES: CRISIL Ups Rating on INR47MM Cash Loan to B+ GANGOTHRI NUTRIENTS: CRISIL Ups Rating on INR92MM Loan to B- GANJAM NAGAPPA: CRISIL Suspends 'B+' Rating on INR425MM Loan GAURAV CONTRACTS: CRISIL Suspends B Rating on INR100MM Bank Loan GHAZIABAD MECHFAB: ICRA Reaffirms B+ Rating on INR4.50cr Loan GOLDEN CELLAR: Ind-Ra Assigns 'IND B' Issuer Rating GREENDIAMZ BIOTECH: CRISIL Suspends 'D' Rating on INR128.5MM Loan GURU-G TEX: CRISIL Suspends 'D' Rating on INR199.9MM Cash Loan ISHWAR RAJ: CARE Ups Rating on INR9.15cr LT Bank Loan to 'B' KASIM COAL: ICRA Revises Rating on INR4.0cr LT Loan to B- KAVERI COTTON: CRISIL Reaffirms B Rating on INR40MM Cash Loan KHANDELWAL FIBERS: CRISIL Suspends B+ Rating on INR70MM Loan KNOTT FASHION: CRISIL Assigns 'B' Rating to INR80MM Cash Loan LAVIS SIGNATURE: ICRA Reaffirms 'B+' Rating on INR10cr Cash Loan M.G. INDUSTRIES: CRISIL Assigns 'B' Rating to INR40MM Cash Loan MAA DURGA: CRISIL Suspends 'B' Rating on INR40MM Cash Loan MAHALAXMI ROLLER: CARE Assigns B+ Rating to INR5.84cr LT Loan MAHI CORPORATION: ICRA Assigns 'B+' Rating to INR5.0cr Cash Loan MAILAM SUBRAMANIYA: CRISIL Suspends 'D' Rating on INR105MM Loan MECLIN INFRAS: CRISIL Suspends B+ Rating on INR10.0MM Loan MEGA VITRIFIED: CRISIL Suspends 'D' Rating on INR70MM Loan MURLIDHAR AGRO: ICRA Assigns 'B+' Rating to INR7.0cr Capital Loan MY FONE: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit N.C. INFRASTRUCTURE: CRISIL Suspends D Rating on INR162.5MM Loan N. R. ISPAT: CRISIL Suspends B+ Rating on INR293.4MM Term Loan NARAYANAN A: CRISIL Assigns B- Rating to INR50MM Overdraft Loan NEEDLE EYE: CARE Assigns 'D' Rating to INR20.50cr LT Loan OCEAN MOTORS: ICRA Suspends B+ Rating on INR21cr Fund Based Loan RAI BAHADUR: CRISIL Cuts Rating on INR1.81BB Cash Loan to 'B+' RAMOJI WAFER: CARE Assigns 'B' Rating to INR10.60cr LT Loan RICHU MAL: CARE Assigns B+ Rating to INR5cr LT Bank Loan RKSK OVERSEAS: ICRA Withdraws 'D' Rating on INR55cr Bank Loan SIDDHIVINAYAK COTTON: CRISIL Suspends B Rating on INR130MM Loan SONU BUILDERS: CRISIL Cuts Rating on INR30MM Cash Loan to B+ SRI SHREESHA: CRISIL Assigns B+ Rating to INR50.0MM Loan STONE CONCERN: CRISIL Reaffirms B+ Rating on INR70MM Cash Loan SUPER AGRO: ICRA Reaffirms B+ Rating on INR8.0cr LT Loan THAKAR DASS: ICRA Reaffirms B+ Rating on INR12cr Fund Based Loan UJJAIN PACKAGING: CRISIL Reaffirms 'B' Rating on INR45.7MM Loan VERA INDIA: ICRA Assigns 'B+' Rating to INR18cr Cash Credit VIRAJ SPINNERS: CRISIL Assigns 'B' Rating to INR337.3MM LT Loan VS METALLIC: ICRA Assigns 'B' Rating to INR10cr Fund Based Loan I N D O N E S I A INDONESIA: Default Risk Jumps Most in Asia on Fund Exit Concerns N E W Z E A L A N D HAMILTON'S 131: Clothing Store Closes Doors After 30 Years NZ DIRECTORIES: Creditors to Vote June 15 on Winding Up Company - - - - - ================= A U S T R A L I A ================= BBY HOLDINGS: AIMS Financial Acquires Collapsed Stockbroker ----------------------------------------------------------- Ecns.cn reports that AIMS Financial Group, owned by Chinese Australian financier George Wang, said that it has completed an asset purchase agreement with the administrators of BBY Holdings Pty Limited, which before its voluntary administration claimed to be the largest independent stockbroker in Australia and New Zealand. BBY and its subsidiary BBY Limited had been placed in administration on May 18 after the broking and advisory group fell short of capital requirements in the options-clearing market and wasn't able to repay a AUD6 million loan to St. George Bank. "The asset acquisition is the first step in the restructure which may require a deed of company arrangement to be accepted by creditors before the BBY corporate entity is returned to solvency," the report quotes AIMS as saying in a statement. According to the report, AIMS said it intends to operate the BBY business as a standalone entity under the BBY Asia Pacific Group brand, and will also consider bringing in new investors in the future. Ecns.cn relates that Mr. Wang, Chairman of AIMS Financial Group, said AIMS wants to "keep and grow the BBY brand, its people and its businesses". "We are now actively working with the team at BBY to get things back and running normally as soon as practical," the report quotes Mr. Wang as saying. AIMS subsidiary AIMS Securities is changing its name to BBY Asia Pacific Group to help enable BBY's 56,000 clients to recommence trading and access shares frozen by the suspension, according to the report. "AIMS is prepared to support and grow the BBY business over the long term, and provide new opportunities for BBY advisors and staff. Our broad vision for BBY is twofold firstly, to enable BBY to grow and be an excellent, client-focused broking and corporate finance business in Australia, with a conservative risk profile; and secondly, as part of AIMS, to be the advisor of choice for deal and capital flows between Australia and Asia," Mr. Wang, as cited by Ecns.cn, said. Founded in 1987, BBY Limited is a boutique investment firm that offers brokerage and financial advisory services. The company provides merger and acquisition, initial public offering, private placement, equity trading, and market and business research services. Additionally, it offers capital raising, restructuring, due diligence, valuation, relationship management, and clearing services. On May 18, the Directors of BBY Limited have appointed KPMG as Voluntary Administrators. INDIGO PROPERTIES: First Creditors' Meeting Set For June 17 ----------------------------------------------------------- Terrence John Rose and Terry Grant van der Velde of SV Partners were appointed as administrator of Indigo Properties Australia Limited on June 4, 2015. A first meeting of the creditors of the Company will be held at SV Partners, 138 Mary Street, in Brisbane, Queensland, on June 17, 2015, at 10:30 a.m. JAG GLOBAL: First Creditors' Meeting Set For June 18 ---------------------------------------------------- Daniel I Cvitanovic of DCW Insolvency Management was appointed as administrator of Jag Global Security Solutions Pty Limited on June 9, 2015. A first meeting of the creditors of the Company will be held at DCW Insolvency Management, Suite 1, 151 Tongarra Road, in Albion Park, NSW, on June 18, 2015, at 11:00 a.m. SHERWIN IRON: Receivers Seek Buyers For Assets ---------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that KordaMentha, the receivers of Sherwin Iron Limited, is seeking urgent expressions of interest for the sale of the business and assets of the company. The sale provides the buyer the chance to own a Northern Territory iron ore project with big proven resource base. The investment highlights include big and long-life JORC resource base, approved environmental impact statement and unexplored possible DSO deposits, Dissolv.com.au relates. The company boasts of huge material value accretive opportunities. As reported in the Troubled Company Reporter-Asia Pacific on July 14, 2014, Peter Gothard and John Melluish of Ferrier Hodgson were appointed Voluntary Administrators of Sherwin Iron Limited, and of two subsidiaries, Sherwin Iron (NT) Pty Limited and South Murchison Mines Pty Limited on July 10, 2014. Janna Robertson and Scott Kershaw of KordaMentha were appointed receivers and managers to each of these entities by the Group's major lender. =============== H O N G K O N G =============== LAI FUNG: Fitch Affirms 'BB-' Issuer Default Ratings ---------------------------------------------------- Fitch Ratings has affirmed Lai Fung Holdings Limited's (Lai Fung) Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDR) at 'BB-'. The Outlook is Stable. The agency has also affirmed Lai Fung's senior unsecured rating at 'BB-'. The full list of rating actions is at the end of this commentary. The rating affirmation is based on Lai Fung maintaining a low level of leverage and stable growth in rental income. It also takes into consideration that there will be enough debt headroom for Lai Fung to develop its flagship project in Hengqin, a city in southern China that is close to Macau. KEY RATING DRIVERS Prudent Financial Management: Lai Fung has been able to maintain low leverage in the past three years, mainly because property development supplements its main business in property leasing. With only 6.0m sq ft of gross floor area (GFA) of residential space in its land bank as at January 2015, Lai Fung is not active in the land market; instead, it progressively sells homes at projects that were mostly acquired several years ago at lower costs. The sale proceeds are used to support the expansion of its investment property portfolio, which is Lai Fung's main goal. Management aims to expand its rental portfolio to 6.7m sq ft in 2018 from 2.8m sq ft currently. Hengqin Project a Long-Term Positive: The Hengqin Creative Culture City project will be a sizeable investment for Lai Fung. We expect the development of this project to increase Lai Fung's leverage in the short to medium term, but it will become another important source of recurring income in the long term and contribute significant sellable resources in the medium term. Lai Fung will need to spend around CNY2.4bn for its 80% stake in Phase 1 of the project, which will require a total investment of CNY3bn, including the land cost. Construction of this project is scheduled to start in 2H15. Concentration of Rental Income: Hong Kong Plaza in Shanghai accounted for over 60% of Lai Fung's gross rental revenue in the financial year ended 31 July 2014 (FY14) and 1HFY15. Although Shanghai Hong Kong Plaza benefited from a surge in rental income after a new food and beverage area was created in FY14, we expect the economic slowdown and increasing competition from online shopping to limit rental upside. Shanghai Hong Kong Plaza will account for about 50% of Lai Fung's rental revenue in FY16-17 as the company completes additional investment properties. Residential Projects in Prime Cities: Lai Fung holds residential property projects in Shanghai, Guangzhou and Zhongshan, where the housing oversupply is small. The projects in Shanghai and Guangzhou are situated in prime areas, which lead to satisfactory profit margins. Lai Fung's gross profit margins were above 40% in the past three years and may widen in the next 12 months as its high-end projects in Shanghai and Guangzhou take up a bigger share of presales. We believe Lai Fung has no intention to expand its property development business substantially, and is likely to sell its inventory gradually. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: - Weak growth in China's retail sector in 2015, resulting in low single-digit percentage rental growth at Lai Fung's Shanghai Hong Kong Plaza. - Average selling price for its development properties to increase slightly in FY15 and FY16, and be stable in the future. - Contracted sales in FY15 and FY16 to be higher than in FY14 as more projects are completed, which will boost the sellable GFA. - Lai Fung to start the construction of its Hengqin project in 2H15 and presales of the serviced apartments units to begin from FY18. RATING SENSITIVITIES Positive rating action is not expected in the next 18-24 months due to Lai Fung's small operational scale. However, future developments that may, individually or collectively, lead to positive rating action include: - EBITDA from investment properties rising above HKD600m (FY14: HKD349m, 1H FY15: HKD191m) - EBITDA for investment properties/interest expenses exceeding 1.5x (1H FY15: 1.1x) on a sustained basis Negative: Future developments that may, individually or collectively, lead to negative rating action include: - EBITDA for investment properties/interest expenses falling below 1.0x on a sustained basis - Total debt/property assets exceeding 40% (26% at end-FY14 and at end-1H FY15) on a sustained basis - Increase of development assets to above 25% of total property assets (14% at end-FY14 and 13% at end-1H FY15) FULL LIST OF RATING ACTIONS Long-Term Foreign-Currency IDR Affirmed at 'BB-', Outlook Stable Long-Term Local-Currency IDR Affirmed at 'BB-', Outlook Stable Foreign-currency senior unsecured rating affirmed at 'BB-' Local-currency senior unsecured rating affirmed at 'BB-' CNY1.8bn senior unsecured notes due 2018 affirmed at 'BB-' ========= I N D I A ========= ALANG METAL: CRISIL Lowers Rating on INR195MM Cash Loan to 'D' -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Alang Metal Exim Pvt Ltd (AMEPL) to 'CRISIL D/CRISIL D' from 'CRISIL BB/Stable/CRISIL A4+'. The ratings downgrade reflect AMEPL's overutilisation of its cash credit account for more than 30 consecutive days because of weakening of its liquidity. The company's liquidity has weakened on account of unanticipated utilisation of funds for supporting operations of an associate concern. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 195 CRISIL D (Downgraded from 'CRISIL BB/Stable') Letter of Credit 100 CRISIL D (Downgraded from 'CRISIL A4+') Proposed Long Term 5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB/Stable') AMEPL also has a below-average financial risk profile marked by stretched liquidity, has large working capital requirements, and is exposed to intense competition in the steel trading business. However, the company benefits from its promoters' extensive experience in the steel trading business. AMEPL was incorporated in 2003, promoted by Mr. Billal Lakhadia, in Mumbai. The company trades in scrap, including metal sheets, pipes, rounds, structures, angles, and channels. AMRIT ENGINEERING: CRISIL Suspends B- Rating on INR55MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Amrit Engineering and Foundry Works (AEFW). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B-/Stable Letter of Credit 5 CRISIL A4 Term Loan 5 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by AEFW with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AEFW is yet to provide adequate information to enable CRISIL to assess AEFW'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'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AEFW and Amrit Duraparts Pvt Ltd (ADPL). This is because the two entities, together referred to as the Amrit group, have operational and financial linkages with each other, and are under a common management. ADPL was incorporated in 2004, promoted by Mr. Amandeep Singh in Goraya (Punjab). It is engaged in casting of pig iron and machining of components for supply to the automotive and tractor industry. Its manufacturing facilities are at Goraya and Phagwara (Punjab). ANALOGICS TECH: Ind-Ra Assigns 'IND BB-' LT Issuer Rating --------------------------------------------------------- India Ratings and Research has assigned Analogics Tech India Limited a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. Ind-Ra has also assigned ratings to ATIL's bank loans as: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-term loans 42.5 IND BB-/Stable Fund-based facilities 180.0 IND BB-/Stable; IND A4+ Non-fund-based 225.0 IND A4+ facilities KEY RATING DRIVERS The ratings reflect ATIL's moderate credit profile and tight liquidity. Liquidity was tight on long receivable collection period (FYE15: 197 days, FYE14: 205 days) as 90% of business is sourced from government enterprises and the company had multiple instances of overutilization of less than 30 days in its fund- based working capital facilities over the 12 months ended April 2015. Net leverage was 3.1x at FYE15 (FYE14: 3.6x) and EBITDA interest cover was 1.7x (1.4x) The ratings are supported by the promoters' two-decade-long experience in manufacturing and supplying hand-held computers. RATING SENSITIVITIES Positive: An improvement in the liquidity position will be positive for the ratings. Negative: Any further decline in the profitability leading to stressed liquidity will be negative for the ratings. Hyderabad-based ATIL was started in 1994. It is a manufacturer and supplier of hand-held computers in India to various power distribution companies for billing applications. Unaudited FY15 financials indicate revenue of INR734 million, a yoy growth of 21.1% and EBITDA margin remaining unchanged at 9.9%. ANIIRUDH CIVIL: CRISIL Reaffirms 'D' Rating on INR30MM Cash Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Aniirudh Civil Engineers and Contractors Pvt Ltd (ACECPL) continue to reflect instances of delay by ACECPL in servicing its debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL D (Reaffirmed) Cash Credit 30 CRISIL D (Reaffirmed) Term Loan 19 CRISIL D (Reaffirmed) The ratings also reflect the high degree of geographical concentration in ACECPL's order book and its exposure to intense competition in the construction industry. However, the company benefits from its promoters' extensive industry experience. ACECPL, incorporated in 2011, is engaged in jetty construction and stone-crushing activities. Its day-to-day operations are managed by Mr. Vivek Kawde and his son, Mr. Aditya Kawde. The promoters have been engaged in the civil construction business since 1998 through group entity, Aniirudh Enterprises (rated 'CRISIL D'). ANNAPURNA VYAPAAR: CRISIL Reaffirms B+ Rating on INR30MM Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Annapurna Vyapaar Pvt Ltd (AVPL) continue to reflect AVPL's weak financial risk profile, marked by a small net worth and average gearing, and its small scale of operations in the intensely competitive tea industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable (Reaffirmed) Term Loan 21 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by AVPL's competitive advantage over its peers due to its proximity to tea plantations, supporting its business risk profile. Outlook: Stable CRISIL believes that AVPL will continue to benefit over the medium term from its proximity to tea plantations and the healthy demand for tea. The outlook may be revised to 'Positive' if the company generates more-than-expected revenues while maintaining its profitability, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if AVPL's business and financial risk profiles weaken, most likely because of lower-than-expected profitability or a stretch in its working capital cycle. AVPL was established in 2009 by Ms. Sweta Devi Agrawal and Ms. Kusum Devi Agrawal. The company manufactures black crush-curl-and- tear (CTC) tea in Siliguri (West Bengal). ANUSHREE INFRASTRUCTURE: CRISIL Rates INR30MM Cash Loan at 'B' -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities Anushree Infrastructure Pvt Ltd (AIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 8 CRISIL B/Stable Cash Credit 30 CRISIL B/Stable Overdraft Facility 18 CRISIL A4 The ratings reflect AIPL's small scale of its operations in the intensely competitive civil construction industry and its working- capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of SLRPL's promoters in the civil construction industry and the company's moderate gearing. Outlook: Stable CRISIL believes that AIPL 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 more- than-expected increase in its revenue and profitability, leading to a substantial increase in its net cash accruals, while improving its working capital management. Conversely, the outlook may be revised to 'Negative' if AIPL's financial risk profile deteriorates on account of a decline in its revenue and profitability, or large debt-funded capital expenditure, or an increase in its working capital requirements. AIPL was incorporated in 2007, promoted by the Delhi-based Singh family. The company undertakes civil construction for its group entity. Mr. Sanjay Singh is the major promoter of the company and is also actively engaged in managing its day-to-day activities. ASG LEATHER: CRISIL Ups Rating on INR70MM Packing Loan to B+ ------------------------------------------------------------ CRISIL has upgraded its long-term rating on the bank facilities of ASG Leather Pvt Ltd (ASGLRPL) to 'CRISIL B+/Stable' from 'CRISIL B-/Stable and reaffirmed its short term rating at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing Credit 70 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Letter of Credit 5 CRISIL A4(Reaffirmed) Proposed Short Term Bank Loan Facility 35 CRISIL A4 (Reaffirmed) Standby Line of Credit 5 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Term Loan 5 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') The rating upgrade reflects ASGLRPL's improved business risk profile, with revenue increasing by around 32 per cent in 2014-15 (refers to financial year, April 1 to March 31) over the previous year. The operating profitability has improved to 8.5 per cent from 7.9 per cent during this period, backed by better realisations and capacity utilisation. The liquidity is ample, with cash accruals of INR10 million to INR12 million against maturing debt of INR4 million to INR6 million. The bank limit utilisation was around 92 per cent over the 12 months through March 2015. Increase in net worth, backed by steady accretions to reserves and equity infusion, has strengthened the financial risk profile. The gearing has reduced to 1.24 times as on March 31, 2015 from 1.34 times in March 31, 2014. The debt protection metrics are moderate with interest coverage of 2.58 times and net cash accruals to total debt of 0.14 times for 2014-15. The rating reflects the extensive experience of ASGLRPL's promoters in the leather bags export business, and established customer relations with diversification in domestic markets. These rating strengths are partially offset by ASGLRPL's average financial risk profile, marked by modest net worth, moderate gearing and debt protection metrics, and small scale of, and working capital intensity in, operations. Outlook: Stable CRISIL believes ASG will benefit from its promoters' extensive experience in the leather industry. The outlook may be revised to 'Positive' in case ASG registers a sustained improvement in its revenue and profitability leading to improved cash accruals and debt protection metrics, and stronger liquidity. Conversely, the outlook may be revised to 'Negative' if low cash accruals, or large working capital requirements or debt-funded capital expenditure constrains its debt servicing ability considerably. Set up in 2002 by Mr. Alok Kumar Sengupta, ASG manufactures and exports leather bags and wallets. It has three manufacturing units in Kolkata (West Bengal) with a total installed capacity of 60,000 wallets and purses per month and 15,000 bags per month. In 2014-15 ASG has provisionally reported a profit after tax (PAT) of INR7.7 million on net income of INR244.3 million; the company reported a PAT of INR3.7 million on a net income of INR182.9 million in 2013-14. ATAM MANOHAR: CRISIL Suspends B+ Rating on INR75MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Atam Manohar Ship Breakers Pvt Ltd (AMSBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 75 CRISIL B+/Stable Letter of Credit 600 CRISIL A4 Proposed Long Term Bank Loan Facility 25 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by AMSBPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AMSBPL is yet to provide adequate information to enable CRISIL to assess AMSBPL'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'. AMSBPL, incorporated in 1997, is a part of the Jain group. The company undertakes ship-breaking activities, with capacity to break ships ranging from 800 tonnes to 50,000 tonnes at its 1350 square metre plot at the port of Alang (Gujarat), which is the leading centre for the ship breaking and recycling industry in Asia. AVANI VANIJYA: Ind-Ra Suspends 'IND D' Rating on INR110MM Loan -------------------------------------------------------------- India Ratings and Research has suspended the short-term 'IND D' rating on Avani Vanijya Private Limited's INR110 million fund- based limits. The rating will now appear as 'IND D(suspended)' on the agency's website. The rating has been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for AVPL's bank loans. The rating will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the rating could be reinstated and will be communicated through a rating action commentary. B.MELARAM: ICRA Reaffirms B+ Rating on INR7cr Cash Credit --------------------------------------------------------- ICRA has reaffirmed the long term rating to the INR7.00 crore cash credit limits, which is the sublimit of short term non fund based limits of B.Melaram & Sons (B.Melaram or the firm) at [ICRA]B+ (pronounced ICRA B plus). ICRA has also reaffirmed the short term rating at [ICRA]A4 (pronounced ICRA A four) for INR35.00 crore of non-fund based bank limits of B.Melaram & Sons. The total utilization should not exceed INR35.00 crore at any point of usage. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash Credit (7.00) [ICRA]B+ re-affirmed Non-fund based-Letter of Credit 35.00 [ICRA]A4 reaffirmed The reaffirmation of ratings continues to take into account B. Melaram & Sons' weak financial profile as evident from fluctuating operating income and high reliance on external funds resulting into TOL/TNW of 3.67 times as on 31st March 2015. Further, the modest profit margin reflects the firm's weak market position on account of low barriers to entry, lack of value addition and intense competition in steel trading and ship breaking industry, which limits its pricing flexibility. Besides the margin remain exposed to fluctuation in steel prices and currency market. Further the legal status of the entity as a partnership firm, poses the risks of significant withdrawal of capital by the partners. The ratings, however factor in the promoter's established track record in the steel trading and ship breaking industry and robust revenue growth registered by the firm in FY15 on the back of increased sales volume. B.Melaram & Sons is a partnership firm engaged in the trading of steel products. The firm has its own warehouse located at Kalamboli, Navi Mumbai. Baijnath Melaram (Rated [ICRA]BB(Stable)/[ICRA]A4+) and Vinodkumar Bhupendrakumar Melaram, engaged in the same line of business, are the associate concerns of B.Melaram. Recent Results B.Melaram & Sons incurred a net loss of INR0.12 crore on an operating income of INR29.72 crore for the year ending March 31, 2014. The firm recorded profit before tax of INR1.15 crore on an operating income of INR83.99 crore in FY15 (provisional). BHOROSHA RICE: CRISIL Reaffirms B- Rating on INR95MM Cash Loan -------------------------------------------------------------- CRISIL ratings on the bank facilities of Bhorosha Rice Mill Pvt Ltd (BRMPL) continue to reflect BRMPL's weak financial risk profile, weak liquidity resulting from its large inventory, and susceptibility to volatility in raw material prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1.6 CRISIL A4 (Reaffirmed) Cash Credit 95 CRISIL B-/Stable (Reaffirmed) Term Loan 25.4 CRISIL B-/Stable (Reaffirmed) These rating weaknesses are partially offset by the extensive experience of BRMPL's promoter in rice milling and the company's diversified customer base. Outlook: Stable CRISIL believes that BRMPL will continue to benefit over the medium term from its promoter's extensive industry experience and its diversified customer base. The outlook may be revised to 'Positive' in case of substantial cash accruals, improved working capital management, or capital infusion by promoters, leading to significant improvement in BRMPL's financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' if BRMPL's liquidity deteriorates, most likely because of deterioration in working capital management or low cash accruals. Incorporated in 1998, BRMPL mills non-basmati parboiled rice at its facility in Burdwan (West Bengal). BRMPL's daily operations are managed by its promoter'director Mr. Nazmul Haque. CANAAN ENGINEERING: CRISIL Reaffirms 'D' Rating on INR71.7MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Canaan Engineering Pvt Ltd (CEPL) continue to reflect CEPL's delay in debt servicing owing to weak liquidity, driven by cost overrun in the company's capex due to delayed project commencement. The liquidity also remained stretched due to cash losses made by CEPL over the three years ending on March 31, 2014 and fully utilised bank lines against large working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 55 CRISIL D (Reaffirmed) Cash Credit 50 CRISIL D (Reaffirmed) Funded Interest Term Loan 14.8 CRISIL D (Reaffirmed) Inland/Import Letter of Credit 25 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 23.5 CRISIL D (Reaffirmed) Term Loan 71.7 CRISIL D (Reaffirmed) Working Capital Term Loan 60 CRISIL D (Reaffirmed) CEPL also has a weak financial risk profile, marked by high gearing, small net worth, and constrained by large working capital requirements. Furthermore, its financial flexibility remained constrained due to working-capital-intensive operations and negative cash accruals from operations. These weaknesses are partially offset by the extensive industry experience of CEPL's promoters and an established customer base. Established in 2005 by Mr. Victor Baby, CEPL fabricates medium- to heavy-sized equipments, such as heat exchangers, pressure vessels and columns, for the petrochemical and fertiliser industries. DIGNITY INNOVATIONS: CRISIL Assigns B- Rating to INR40MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of Dignity Innovations (DI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Term Loan 40 CRISIL B-/Stable Proposed Packing Credit 25 CRISIL A4 Foreign Bill Purchase 30 CRISIL A4 Packing Credit 10 CRISIL A4 The ratings reflect DI's below-average financial risk profile marked by highly leveraged capital structure and weak debt protection metrics. The ratings also factor in DI's modest scale of operations and its large working capital requirements. These rating weaknesses are partially offset by the extensive entrepreneurial experience of the promoters. Outlook: Stable CRISIL believes that the DI will continue to benefit from the extensive experience of the promoters. The outlook may be revised to 'Positive' if the company improves its liquidity driven by improvement in its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if DI's financial risk profile weakens with a decline in its cash accruals, or deterioration in its working capital management, or sizeable debt-funded capital expenditure. Established as a proprietorship firm in 1993, DI is engaged in the manufacture of readymade garments (RMG). The firm is based out of Chennai and the day to day operations of the company are managed by the promoter, Mr. S. Rajasekaran. DI reported net loss of INR5.5 million on operating income of INR217 million for 2013-14 (refers to financial year, April 1 to March 31), against net loss of INR0.5 million on operating income of INR170 million for 2012-13. EMERALD INDUSTRIES: CRISIL Ups Rating on INR47MM Cash Loan to B+ ---------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank loan facilities of Emerald Industries (Emerald) to 'CRISIL B+/Stable'from 'CRISIL B/Stable', while reaffirming its rating on the firm's short-term bank facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 81 CRISIL A4 (Reaffirmed) Cash Credit 47 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Proposed Bank Guarantee 30.5 CRISIL A4 (Reaffirmed) Term Loan 10 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects the improvement in Emerald's business risk profile, marked by significant and sustainable increase in its scale of operations and improvement in its working capital cycle. The firm's revenue from operations increased to about INR406 million in 2014-15 (refers to financial year, April 1 to March 31) from INR127 million in 2013-14, backed by healthy orders of over INR2 billion from TATA Aldesa JV(TATA Aldesa) and Nagarjuna Construction Company Ltd (NCC). Emerald's working capital cycle improved significantly with gross current assets of 135 days as on March 31, 2015, as against 441 days a year earlier. The improvement was mainly because of better payment terms with TATA Aldesa and NCC resulting in improved realisations, and also due to lower inventory holding, which is expected to be sustained over the medium term. Furthermore, the firm's liquidity is expected to be supported by its increasing cash accruals, which are likely to be sufficient to meet its maturing debt obligations over the medium term. Also, the expected enhancement in its bank lines is likely to support the firm's ramp up of operations and its incremental working capital requirements over this period. The ratings reflect Emerald's small scale of operations in the competitive and fragmented stone-crushing industry and the firm's low operating profitability. These rating weaknesses are partially offset by the extensive industry experience of Emerald's promoters, and its healthy order book. Outlook: Stable CRISIL believes that Emerald will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm improves its scale of operations and profitability while sustaining its working capital cycle, resulting in sizeable cash accruals and hence in a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if Emerald's liquidity deteriorates because of low cash accruals or large working capital requirements, leading to pressure on its debt repayment ability, or if the firm undertakes a considerable debt-funded capital expenditure programme. Set up in 1974 by its managing partner Mr. Anil Bhansali and his brothers, Emerald mines and extracts boulders, supplies crushed stone aggregates, and undertakes site preparation and road development activities. The firm has four leased stone quarries and four stone-crushing units in Gwalior (Madhya Pradesh). Emerald reported a profit after tax (PAT) of INR8.3 million on an operating income of INR405.9 million for 2014-15, against a PAT of INR3.5 million on an operating income of INR127.5 million for 2013-14. GANGOTHRI NUTRIENTS: CRISIL Ups Rating on INR92MM Loan to B- ------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Gangothri Nutrients and Fertilizers Private Limited (GNFPL) to 'CRISILB-/Stable' from 'CRISIL D''. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 34 CRISIL B-/Stable (Upgraded from 'CRISIL D') Long Term Loan 92 CRISIL B-/Stable (Upgraded from 'CRISIL D') Proposed Long Term 74 CRISIL B-/Stable (Upgraded Bank Loan Facility from 'CRISIL D') The rating upgrade reflects GNFPL's track record of timely servicing of its maturing obligations resulting in improvement in liquidity. CRISIL believes that GNFPL will maintain its improved business risk profile, supported by stabilisation of its operations. With the stabilization of operations, the revenue will improve, resulting in healthy net cash accruals. In the absence of any capital expenditure plan, the cash accruals will support working capital management, thus improving GNFPL's financial risk profile, over the medium term. The rating continues to reflect GNFPL's small scale of operations in the intensely competitive granite industry, working capital intensive nature of operations and its below-average financial risk profile marked by moderate gearing and modest debt protection metrics. These weaknesses are partially offset by benefits derived from the extensive experience of its promoters. Outlook: Stable CRISIL believes that GNFPL will continue to benefit from the extensive industry experience of its promoters and its established customer relationship. The outlook may be revised to 'Positive' if the company increases its scale of operations and profitability on a sustained basis resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is considerable decline in revenues or profitability or its working capital management deteriorates resulting in weak liquidity or the company undertakes any large debt-funded capital expenditure programme, constraining its financial risk profile. Incorporated in 2010 as a private limited company by Mr.K.Madhuram Reddy and Mr.K.Sammaiah, GNFPL is involved in the manufacturing of soil conditioners and micronutrients. The company started commercial operations during 2013-14 (refers to financial year April 1 to March 31). GNFPL reported a net loss (NL) of INR21 million on net sales of INR19 million for 2013-14 (refers to financial year, April 1 to March 31). GANJAM NAGAPPA: CRISIL Suspends 'B+' Rating on INR425MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Ganjam Nagappa and Son Private Limited (GNSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 425 CRISIL B+/Stable Term Loan 60 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by GNSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GNSPL is yet to provide adequate information to enable CRISIL to assess GNSPL'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' Incorporated in 1980 by the Bangalore-based Ganjam family, Ganjam Nagappa & Sons Pvt. Ltd. (GNSPL) is engaged in manufacturing and retailing of gold jewellery and diamond-studded ornaments. The group is engaged in the retail jewellery business since 1889. The company's flagship store is at Infantry Road, Bangalore; it has three other stores, one each in Bangalore, Delhi, and Mumbai. GAURAV CONTRACTS: CRISIL Suspends B Rating on INR100MM Bank Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Gaurav Contracts Co (GCC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 100 CRISIL B/Stable Proposed Short Term Bank Loan Facility 20 CRISIL A4 The suspension of ratings is on account of non-cooperation by GCC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GCC is yet to provide adequate information to enable CRISIL to assess GCC'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'. GCC was setup in 1994 as partnership firm, by four brothers - Mr. Hiralal Shivgan Dholu, Mr. Govind Shivgan Dholu, Mr. Navin Shivgan Dholu and Mr. Kishore Shivgan Dholu. The firm is primarily engaged in excavation, overburden removal and dumping of lignite from mines. The firm is based out of Bhuj, Gujarat. GHAZIABAD MECHFAB: ICRA Reaffirms B+ Rating on INR4.50cr Loan ------------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B+ on the INR4.50 crore fund based limits of Ghaziabad Mechfab Pvt Ltd and reaffirmed its short-term rating of [ICRA]A4 on the INR6.0 crore non-fund based facilities of GMPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 4.50 [ICRA]B+; reaffirmed Non Fund Based Limits 6.00 [ICRA]A4; reaffirmed ICRA's ratings continue to take into account the intensely competitive nature of the fabrication industry, which coupled with GMPL's modest scale of operations results in low bargaining power and low pricing flexibility for the company. As a result, the company's profitability remains vulnerable to adverse movement in prices of raw materials such as hot and cold rolled steel products. The ratings continue to be constrained by the stretched liquidity position of the company as reflected in high utilization of fund based working capital limits, as well as the moderately high client concentration risk, with the top five customers accounting for 67% of GMPL's total sales; however this risk is partly mitigated by the company's established relationship with its clients. However, the ratings continue to derive comfort from the long experience of the promoters in the pre engineered building industry and favorable demand prospects for GMPL's products driven by the government's emphasis on infrastructure and rural development in India. Going forward, the ability of the company to increase its scale of operations in a profitable manner while maintaining optimal working capital intensity and comfortable liquidity position will be the key rating sensitivities. GMPL was established in 1996 as a private limited company and has been promoted by Mr. Subodh Gupta, who has more than a decade of experience in the fabrication industry. The company is engaged in manufacturing of pre engineered buildings and components. The manufacturing facility of the company is located at Ghaziabad in Uttar Pradesh. Recent Results The company reported a net profit of INR0.64 crore on an operating income of INR33.35 crore in FY 14, as against a net profit of INR0.44 crore on an operating income of INR29.13 crore in the previous year. GOLDEN CELLAR: Ind-Ra Assigns 'IND B' Issuer Rating --------------------------------------------------- India Ratings and Research has assigned Golden Cellar Private Limited a Long-Term Issuer Rating of 'IND B'. The Outlook is Stable. The agency has also assigned GCPL's INR50 million fund- based limits a Long-Term 'IND B' rating with a Stable Outlook. KEY RATING DRIVERS The ratings reflect GCPL's small scale of operations and weak credit metrics. FY15 unaudited financial statements indicate revenue of INR646.52 million (FY14: INR639.30m), EBITDA margins of 0.87% (0.89%), gross interest coverage of 1.3x (0.7x) and net leverage (total adjusted net debt/operating EBITDA) of 5.5x (7.7x). The ratings benefit from over-two-decade-long experience of the company's promoters in the distribution of beer brands for established companies such as United Breweries Limited and Khoday India Limited in Mumbai. RATING SENSITIVITIES Negative: A decline in the operating profitability leading to deterioration in the credit metrics will be negative for the ratings. Positive: A rise in the operating profitability leading to a sustained improvement in the credit metrics will be positive for the ratings. Incorporated in 1991, GCPL is engaged in the distribution of beer for United Breweries and Khoday India in Mumbai. The company has its registered office and a warehouse at Kurla, Mumbai. GREENDIAMZ BIOTECH: CRISIL Suspends 'D' Rating on INR128.5MM Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Greendiamz Biotech Ltd (GBL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Cash Credit 70 CRISIL D Letter of Credit 72.5 CRISIL D Packing Credit 30 CRISIL D Rupee Term Loan 128.5 CRISIL D The suspension of ratings is on account of non-cooperation by GBL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GBL is yet to provide adequate information to enable CRISIL to assess GBL'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'. GBL, a part of the Sanghvi group, was set up in 2009 by Mr. Champat Sanghvi. The company primarily manufactures and sells biodegradable plastic under the Truegreen brand. GURU-G TEX: CRISIL Suspends 'D' Rating on INR199.9MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Guru-G Tex Print Pvt Ltd (Guru-G). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 199.9 CRISIL D The suspension of rating is on account of non-cooperation by Guru- G with CRISIL's efforts to undertake a review of the rating outstanding. Despite repeated requests by CRISIL, Guru-G is yet to provide adequate information to enable CRISIL to assess Guru-G'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'. Guru-G was incorporated in 2009. The company trades yarn and fabric. Guru-G also undertakes job work by undertaking embroidery work on sarees and fabric. ISHWAR RAJ: CARE Ups Rating on INR9.15cr LT Bank Loan to 'B' ------------------------------------------------------------ CARE revises the ratings assigned to the bank facilities of Ishwar Raj Beverages Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.15 CARE B Revised from CARE D Rating Rationale The revision in the rating assigned to the bank facilities of Ishwar Raj Beverages Pvt. Ltd. (IRBPL) is mainly on account of satisfactory debt servicing. However, the rating continues to remain constrained by its short track record with small scale of operations, its low bargaining power and fortune linked to the principle brand owner. The aforesaid rating also considers seasonal nature of the industry, working capital intensive nature of its operation and its leveraged capital structure. The ratings, however, derive strength from the experienced promoters though newer in this line of business and exclusive franchise agreement with Parle Agro. The ability of the company to scale up its scale of operations and improve its profit margins, along with improvement in its capital structure with effective working capital management would be the key rating sensitivities. IRBPL incorporated in September 2010, was promoted by one Mr Manish Kumar of Patna, Bihar. IRBPL is in manufacturing, bottling and distribution of different carbonated soft drinks & packaged drinking water brands of Parle Agro Pvt Ltd at its bottling facilities. The company manufactures well-known brands like "Frooti, Appy, Appy Fizz, Frio, Dhishoom, Cafe Cuba etc for the state of Bihar under the exclusive franchise agreement with Parle Agro Pvt. Ltd. The bottling plant of the company is located at Fatuha in Patna having installed capacity of 1,036,800 kilo litters per annum. The day-to-day affairs of the company are looked after by Mr Manish Kumar, Managing Director, with adequate support from other director Mr Rajnish Kumar Singh and a team of experienced personnel. The promoters are primarily in the hotel business since long in Patna with a single property under the name Hotel Ambassdor. During FY14 (refers to the period April 1 to March 31), the company reported a total operating income of INR11.68 crore (FY13: INR6.40 crore) and a net loss of INR0.07 crore (FY13: Net loss of INR1.70 crore). In FY15 (provisional), the company has achieved a total operating income of INR17.21 crore with a net profit of INR0.05 crore. KASIM COAL: ICRA Revises Rating on INR4.0cr LT Loan to B- --------------------------------------------------------- ICRA has revised the long term ratings assigned to the INR4.0 crore (revised from INR5.0 crore) fund based facilities of Kasim Coal and Logistics Private Limited from [ICRA]B+ to [ICRA]B- . The short term ratings for the INR5.0 crore (revised from INR50.0 Cr) non-fund based of KCL have been reaffirmed at [ICRA]A4. ICRA has also assigned a long term/short term rating of [ICRA]B-/[ICRA]A4 to the INR46.0 crore proposed facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Facilities 4.0 [ICRA]B- revised Short Term Non-Fund Based Facilities 5.0 [ICRA]A4 reaffirmed Proposed Facilities 46.0 [ICRA]B-/[ICRA]A4 assigned The rating revision takes into consideration the sharp decline in revenue and profitability metrics over the past few years owing to a decline in overall quantity traded. The decline, in turn, was on account of the reduction in the bank credit lines owing to withdrawal of financial support from another group company. The ratings also take into account the competitive nature of the industry, KCL's limited client base and infrastructure facilities. ICRA, nevertheless, favourably considers the considerable experience of the promoters and the favourable medium term demand prospects arising out of the demand supply mismatches in the domestic market. Established in FY 2008, Kasim Coal and Logistics Private Limited (KCL) has been engaged in non-coking coal trading as well as providing allied services such as logistics and transportation of coal to its customers. The company performs direct imports and sources coal from other traders in the domestic market to suit the customer requirement on the grades and timely availability. However, over the last two years, the client has not done any direct imports and has relied solely on purchases from other domestic traders and high seas sales. In FY-2013-14, KCL recorded an operating income of INR9.78 Cr against INR38.90 Cr in FY 2012-13 and incurred losses of INR0.42 Cr at the Opbitda and INR1.44 Cr at the net profit levels. KAVERI COTTON: CRISIL Reaffirms B Rating on INR40MM Cash Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Kaveri Cotton Industries (Kaveri) continues to reflect Kaveri's modest scale of operations in the intensely competitive cotton industry and the firm's weak financial risk profile marked by weak capital structure and debt protection metrics. These rating weaknesses are partially offset by the extensive entrepreneurial experience of Kaveri's partners. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Reaffirmed) Long Term Loan 30 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that Kaveri will continue to benefit over the medium term from its partners' extensive entrepreneurial experience. The outlook may be revised to 'Positive' if the firm improves its scale of operations and capital structure, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if Kaveri undertakes any aggressive debt- funded expansion, or if its revenue and profitability decline substantially, or if the partners withdraw capital from the firm, weakening its financial risk profile. Set up in 2011 as a partnership firm, Kaveri gins and presses raw cotton and sells cotton lint and cotton seeds. The firm is promoted by Dr. V Satish, Mr. K Ramakrishna Rao, Mr. V Anjaneyulu, and Mr. S Srinivas Rao, and their family members. Kaveri reported profit after tax (PAT) of INR0.4 million on net sales of INR127.06 million for 2013-14 (refers to financial year, April 1 to March 31), against PAT of INR0.33 million on net sales of INR91.56 million for 2012-13. KHANDELWAL FIBERS: CRISIL Suspends B+ Rating on INR70MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Khandelwal Fibers (KF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 2.5 CRISIL B+/Stable Standby Line of Credit 10 CRISIL A4 Term Loan 17.5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by KF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KF is yet to provide adequate information to enable CRISIL to assess KF'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'. KF was set up as a partnership firm in 2011 by Mr. Kamal Khandelwal and his family members. KF is engaged in the ginning and pressing of cotton as well as in trading of cotton bales. KF commenced its ginning operations from December 2011 at its manufacturing unit at Sillod (Aurangabad). Mr. Kamal Khandelwal oversees the day to day operations of KF. He has been associated with other family owned entities which are also engaged in a similar activity. KNOTT FASHION: CRISIL Assigns 'B' Rating to INR80MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facility of Knott Fashion Studio (KFS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable The ratings reflect KFS's weak financial risk profile, marked by high gearing, its small scale of operations in the textiles trading industry, and large working capital requirements. These rating weaknesses are partially offset by its promoters' extensive experience in the textile business. Outlook: Stable CRISIL believes that KFS will maintain its business risk profile over the medium term backed by its established proprietor's experience. The outlook may be revised to 'Positive' if the firm significantly improves its scale of operations and net cash accruals, along with its working capital management, leading to improved capital structure. Conversely, the outlook may be revised to 'Negative' in case of any debt funded capex or lower than expected accruals resulting in further weakening of capital structure or in case of increase in working capital requirements leading to further stretch in liquidity profile. Incorporated in 2007, Knott Fashion Studio is a New Delhi-based proprietorship firm that is primarily engaged export of readymade garments, woollen garments, home furnishing items, handicrafts and leather products such as wallets and purses. The concern's administrative office is located in New Ashok Nagar, Delhi. LAVIS SIGNATURE: ICRA Reaffirms 'B+' Rating on INR10cr Cash Loan ---------------------------------------------------------------- The rating of [ICRA]B+ has been reaffirmed to the INR10.00 crore fund based cash credit facility and the INR6.19 crore (reduced from INR10.32 crore) term loan facility of Lavis Signature Panel Private Limited. The rating of [ICRA]A4 has also been reaffirmed to the INR0.36 crore short term non fund based bank guarantee facility and INR10.00 letter of credit facility (sub-limit of cash credit facility) of LSPPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 10.00 [ICRA]B+;reaffirmed Term Loan 6.19 [ICRA]B+;reaffirmed Bank Guarantee 0.36 [ICRA]A4;reaffirmed Letter of Credit (10.00) [ICRA]A4;reaffirmed The rating continues to be constrained by Lavis Signature Panel Private Limited (LSPPL)'s weak financial profile as reflected by thin profitability, weak debt coverage indicators, adverse capital structure and highly stretched liquidity position as evident in stretched receivables and payables. The rating also takes into account the high supplier concentration for supply of bagasse which is seasonal in nature and susceptibility to its availability and prices given its increasing demand for power generation. The rating also factors in the vulnerability of profitability to cyclicality inherent in the real estate industry. Further, the ratings take note of LSPPL's modest scale of operations amidst highly fragmented industry characterized by availability of substitute products and intense competition from organized as well as unorganized players. The ratings however draw comfort from the long experience of the promoters in the wood processing and laminate industry; favourable cost dynamics for particle boards as compared to plywood and proximity to raw material sources. Established in 2009, Lavis Signature Panel Private Limited is engaged in the business of manufacturing of particle and pre laminated particle board. The company is promoted by Mr. Dhansukhbhai Patel, Mr. Hasmukhbhai Patel and Mr. Amrutbhai Patel who have interests in various common and individual businesses in timber and laminates industry. The manufacturing facility of the company is located at Kathlal in Kheda District, Gujarat, having an installed capacity of producing 3500 units of particle board and 2500 units of pre laminated particle boards of size of 2.44" X 1.22" sq. m. per day. Recent Results For the year ended 31st March, 2014, LSPPL reported an operating income of INR34.82 crore and profit after tax of INR0.63 crore. M.G. INDUSTRIES: CRISIL Assigns 'B' Rating to INR40MM Cash Loan --------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of M.G. Industries (MGI), and has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to these facilities. CRISIL had, on September 10, 2014, suspended the ratings as MGI had not provided the necessary information required for a rating review. The firm has now shared the requisite information, enabling CRISIL to assign ratings to its bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL A4 (Assigned; Suspension Revoked) Cash Credit 40 CRISIL B/Stable (Assigned; Suspension Revoked) Long Term Loan 1.3 CRISIL B/Stable (Assigned; Suspension Revoked) Proposed Long Term 13.7 CRISIL B/Stable (Assigned; Bank Loan Facility Suspension Revoked) The ratings reflect MGI's weak financial risk profile, marked by a small net worth and high gearing, its working-capital-intensive nature of operations, and high customer concentration in its revenue profile. These rating weaknesses are partially offset by the extensive experience of the firm's partners in the aluminium conductors and its established relationships with customers. Outlook: Stable CRISIL believes that MGI will continue to benefit over the medium term from its partners' extensive industry experience and its established relationships with customers. The outlook may be revised to 'Positive' if MGI registers a substantial growth in its revenue while improving its working capital cycle and profitability, or if its capital structure improves, most likely due to capital infusion. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the firm's financial risk profile due to delay in receivables or a decline in its revenue and profitability. MGI was set up as a partnership firm in 2005, and commenced operations in June 2007. The firm is promoted by Mr. Nanu Ram Aggarwal, Mrs. Meena Agarwal and Mr. Ashok Anand. It manufactures aluminium conductors steel reinforced, which are used for overhead transmission and distribution of electricity. MGI's manufacturing unit is located at Bari Brahmana, Jammu. MAA DURGA: CRISIL Suspends 'B' Rating on INR40MM Cash Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Maa Durga Enterprises Limited (MDEL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL A4 Cash Credit 40 CRISIL B/Stable Letter of Credit 40 CRISIL A4 Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by MDEL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MDEL is yet to provide adequate information to enable CRISIL to assess MDEL'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'. MDEL was acquired by Mr. G L Kothari and Mr. Kewal Chand Kothari in 2004 from Maharashtra State Finance Corporation. MDEL operates a semi-integrated thermo-mechanically treated (TMT) bars manufacturing plant. It has ingots manufacturing capacity and TMT bars manufacturing capacity, of 36,000 tonnes per annum each, in Goa. MAHALAXMI ROLLER: CARE Assigns B+ Rating to INR5.84cr LT Loan ------------------------------------------------------------- CARE assigns 'CARE B+' ratings to bank facilities of Mahalaxmi Roller Flour Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.84 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Mahalaxmi Roller Flour Mills (MAR) is primarily constrained by its small scale of operations coupled with low net worth base and weak financial risk profile characterized by thin profitability margins, leveraged capital structure and weak debt coverage indicators. The rating is further constrained on account of volatility in raw material prices influenced by government policies on agro commodity, highly competitive agro processing industry with low entry barriers and partnership nature of its constitution. The rating, however, draws comfort from experienced partners coupled with MAR's long track record of operations and moderate operating cycle. Going forward, the ability of the firm to increase the scale of operations while registering improvement in profitability margins and capital structure shall be the key rating ensitivities. Mahalaxmi Roller Flour Mills (MAR) is a partnership firm and was established in 1983 by Mr G K Khanduja. The current partners are Mr Parvinder Khanduja and Mr Harvinder Khanduja sharing profit and loss equally. The firm is engaged in processing of wheat into wheat flour, refined flour (maida), suji and choker. The main raw material of the firm is wheat which is procured from broker and commission agents located in Delhi. The firm also procures wheat from Food Corporation of India (FCI). MAR sells its products through commission agents and dealers in states like Uttar Pradesh and Punjab. In FY14 (refers to the period April 1 to March 31), MAR has achieved a total operating income (TOI) of INR48.84 crore and PAT of INR0.13 crore as against TOI INR40.10 crore and PAT of INR0.22 crore in FY13. During FY15 (Based on unaudited results), the firm achieved TOI of INR48.77 crore. MAHI CORPORATION: ICRA Assigns 'B+' Rating to INR5.0cr Cash Loan ---------------------------------------------------------------- The long-term rating of [ICRA]B+ has been assigned to the INR5.00 crore cash credit facility and INR1.45 crore term loans facility of Mahi Corporation Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.00 [ICRA]B+ assigned Term Loan 1.45 [ICRA]B+ assigned The assigned rating is constrained by the company's modest scale and limited track record of operations, and its weak financial risk profile characterized by thin profitability, leveraged capital structure and weak debt coverage indicators. The rating is further constrained by the high commodity price volatility in guar gum which could result in pressure on margins in the event of significant correction in prices; the high fragmentation and competitive intensity in the guar split manufacturing business and the agro-climatic risks related to guar seed production. The rating, however, favourably factors in past experience of promoters in guar seed trading which is expected to support guar seed procurement for the company as well as proximity of the company's manufacturing plant to guar seed producing belt in Gujarat enabling ease of access to quality raw material sources. Incorporated in November 2013, Mahi Corporation Private Limited (MCPL) is promoted by Mr. Amitbhai Bhimani, Mr. Pravinbhai Boda, Mr. Shantilal Boda and Mr. Mahendrabhai Boda having vast experience in gaur seed trading. The company commenced its commercial operations from end of May 2014 and is engaged in processing of guar seeds to produce guar gum refine splits and its by-products like churi and korma. The company's processing facility is located at Tankara in Rajkot district of Gujarat having annual installed capacity of 16,500 MTPA. The guar gum refine splits find application as raw material in guar gum powder manufacturing whereas churi and korma are largely used as cattle feed. Recent Results For the year ended 31st March 2015 (provisional unaudited financials), MCPL has reported an operating Income of INR30.46 crore and profit before tax of INR0.25 crore. MAILAM SUBRAMANIYA: CRISIL Suspends 'D' Rating on INR105MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Mailam Subramaniya Swamy Educational Trust (MSSET). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 105 CRISIL D The suspension of ratings is on account of non-cooperation by MSSET with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MSSET is yet to provide adequate information to enable CRISIL to assess MSSET'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' Set up in 1998, MSSET runs Mailam Engineering College in Villapuram district (Tamil Nadu). The college is affiliated to Anna University, Chennai (Tamil Nadu), and it currently offers twelve courses in the fields of engineering and management. The trust has total student strength of close to 3700 students. Mr. M Dhanasekaran, chairman of the trust, currently manages the day-to- day operations of the trust. MECLIN INFRAS: CRISIL Suspends B+ Rating on INR10.0MM Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Meclin Infras Private Limited (MIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 121.7 CRISIL A4 Cash Credit 10 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by MIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MIPL is yet to provide adequate information to enable CRISIL to assess MIPL'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' Set up in 1992 and reconstituted in 2008, MIPL undertakes EPC contracts, specifically for hydro power related projects. The day to day operations are managed by Mr. S. Kandaswamy. MEGA VITRIFIED: CRISIL Suspends 'D' Rating on INR70MM Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Mega Vitrified Private Limited (MVPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 22.5 CRISIL D Cash Credit 70 CRISIL D Letter of Credit 10 CRISIL D Term Loan 61.1 CRISIL D The suspension of ratings is on account of non-cooperation by MVPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MVPL is yet to provide adequate information to enable CRISIL to assess MVPL'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' Incorporated in 2006, MVPL is promoted by Mr Prakash Patel, Mr Paresh Gopani, and Mr Anil Gopani. The company is engaged into manufacturing of vitrified tiles with a manufacturing facility in morbi (Gujarat). MURLIDHAR AGRO: ICRA Assigns 'B+' Rating to INR7.0cr Capital Loan ----------------------------------------------------------------- ICRA has assigned [ICRA]B+ rating to the INR7.00 crore working capital facility and INR0.11 crore term loan facility of Murlidhar Agro Food Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based: Working Capital Limits 7.00 [ICRA]B+; Assigned Fund Based: Term Loan 0.11 [ICRA]B+; Assigned The assigned ratings are constrained by Murlidhar Agro Food Private Limited (MAFPL)'s relatively small scale of operations and vulnerability to profitability towards regulatory and agro climatic risks. The assigned ratings also consider the limited value addition in rice milling operations and highly competitive and fragmented industry structure which leads to low operating and net margins. The ratings, further takes note of the weak financial profile characterized by thin profit margins, stretched capital structure and weak return indicators. The assigned ratings however, derive comfort from MAFPL's over 10 years experienced promoters with long track record of the promoters in the rice milling industry.However, the ratings favorably factor in MAFPL's experienced promoters with long track record in rice milling industry and proximity of the mill to major rice growing area which results in easy availability of paddy. Murlidhar Agro Food Private Limited (MAFPL) was incorporated in 2005 and is engaged in the business of milling par boiled rice. The company operates from its plant located at Kheda in the state of Gujarat, with an installed capacity of 18000 MTPA (Metric Tonne Per Annum). The company is promoted by Mr. Hitesh Patel, Mr. Hareshkumar Bhavani, Mr. Ashok Makwana and Mr. Neelangi Patel, who set up the unit in 2005 as a private limited company. Recent Results For the year ended 31st March, 2014, the company reported an operating income of INR27.49 crore and profit after tax (PAT) of INR0.18 crore. MY FONE: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit ---------------------------------------------------------- CRISIL's rating on the long-term bank facility of MY Fone Teleservices Private Limited (MFTPL) continues to reflect the company's modest scale of operations with a low operating margin, and large working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) The rating also factors in the company's weak financial risk profile, constrained by its small net worth and weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of the promoters in the dealership segment. Outlook: Stable CRISIL believes that MFTPL's business risk profile will remain constrained by its modest scale of operations and competitive pressure on its principal's market share over the medium term. The outlook may be revised to 'Positive' if the company's capital structure and liquidity improve with a significant increase in its topline and profitability, or a substantial equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if MFTPL's topline is restricted by competition or its liquidity deteriorates. MFTPL, founded in Bhopal (Madhya Pradesh) in 2008, by Mr. Saurabh Garg and his family members, distributes Nokia mobile handsets and accessories; and HCL Technologies Ltd's computers and laptops in Bhopal (Madhya Pradesh). MFTPL on provisional basis reported a profit after tax (PAT) of INR0.5 million on net sales of INR301 million for 2013-14, as against a PAT of INR0.6 million on net sales of INR346.7 million for 2012-13. N.C. INFRASTRUCTURE: CRISIL Suspends D Rating on INR162.5MM Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of N.C. Infrastructure (NCI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 162.5 CRISIL D The suspension of rating is on account of non-cooperation by NCI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NCI is yet to provide adequate information to enable CRISIL to assess NCI'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' NCI was set up as a partnership firm in 2009, by Mr. Nareshkumar Rammanlal Patel, his family members, and business associates. The firm is currently constructing a residential complex named Aarush Icon, and bungalows named Aarush Green Ville 2. N. R. ISPAT: CRISIL Suspends B+ Rating on INR293.4MM Term Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of N. R. Ispat and Power Private Limited (NRIPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 124.5 CRISIL B+/Stable Term Loan 293.4 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by NRIPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NRIPPL is yet to provide adequate information to enable CRISIL to assess NRIPPL'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' NRIPPL, set up in January 2008 by Raipur (Chhattisgarh)-based Agrawal family, manufactures mild-steel ingots and sponge iron. The company has its manufacturing facility in Raigarh (Chhattisgarh) with ingot manufacturing capacity of 60 tonnes per day (tpd) and sponge iron manufacturing capacity of 200 tpd. NARAYANAN A: CRISIL Assigns B- Rating to INR50MM Overdraft Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of Narayanan A. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 11 CRISIL B-/Stable Bank Guarantee 9 CRISIL A4 Overdraft Facility 50 CRISIL B-/Stable The ratings reflect Narayanan A's modest scale of operations, exposure to intense competition in the civil construction industry and weak financial risk profile. These rating weaknesses are partially offset by the benefits derived from the experience of Narayanan A's promoter in the civil construction industry. Outlook: Stable CRISIL believes that Narayanan A will continue to benefit over the medium term from the industry experience of its promoter in the civil construction industry. The outlook may be revised to 'Positive' if significant improvement in scale of operations and profitability result in stronger cash accruals for the firm. Conversely, the outlook may be revised to 'Negative', if the financial risk profile weakens on account of low cash accruals, stretch in working capital cycle, or any large debt-funded capital expenditure. Established in 2011 as a sole proprietorship firm, Narayanan. A, is a Wayanad (Kerala)-based civil contractor. The firm primarily undertakes construction of roads. The firm bids for roads contracts of Kerala State Road Development Authority, Kerala. The operations are managed by Mr. Narayanan. NEEDLE EYE: CARE Assigns 'D' Rating to INR20.50cr LT Loan --------------------------------------------------------- CARE assigns 'CARE D' ratings to the bank facilities of Needle Eye Plastic Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 20.50 CARE D Assigned Short term Bank Facilities 4.00 CARE D Assigned Rating Rationale The ratings assigned to the bank facilities of Needle Eye Plastic Industries Pvt Ltd factor in the ongoing delays in the servicing of the interest and principle repayment of debt due to the stressed liquidity position. Incorporated in 1986, Needle Eye Plastic Industries Pvt. Ltd. (NEPIPL) started its operations in 2010 and is led by its director Mr Ramesh Kumar Saboo. The company is into manufacturing of sheet metal fabrication products for automobile players like Ashok Leyland, Tata Motors etc. and also manufactures plastic moulding products like washing machine parts, refrigerator parts and water purifier parts. NEPIPL registered a total operating income of INR40.56 crore during FY14 (Audited) (refers to the period April 1 to March 31) with net losses of INR0.27 crore as against a total operating income of INR37.17 crore with PAT of INR1.21 crore in FY13. During FY15 (Provisional), NEPIPL registered a total operating income of INR16.89 crore with PBILDT of INR1.41 crore. OCEAN MOTORS: ICRA Suspends B+ Rating on INR21cr Fund Based Loan ---------------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to the INR21.0 crore fund based limits of Ocean Motors Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of requisite information from the company. RAI BAHADUR: CRISIL Cuts Rating on INR1.81BB Cash Loan to 'B+' -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Rai Bahadur Narain Singh Sugar Mills Limited (RBNL) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Downgraded from 'CRISIL BB/Stable') Cash Credit 1810 CRISIL B+/Stable (Downgraded from 'CRISIL A4+') The rating downgrade reflects RBNL's large cash losses in 2014-15 (refers to financial year, April 1 to March 31) on account of decline in sugar prices and revision in the state advised price (SAP) for cane. While the average realization for sugar has been less than INR2800 per quintal, the SAP for cane in Uttarakhand has been revised to INR2800 per quintal, thereby leading to operating losses for RBNL. A part of the losses has been subsidized by the state government, and a sizeable tranche of subsidy is expected in the near term. Nevertheless large annual maturing debt of about INR200 million, and cane arrears of about INR950 million outstanding as on March 31, 2015 add to the pressure on the firm's liquidity. The ratings reflect RBNL's below-average financial risk profile, marked by aggressive gearing and inadequate debt protection measures. The business risk profile has been weakened by unanticipated cash losses and large working capital requirements. These rating weaknesses are partially offset by the promoters' extensive industry experience and RBNL's established track record in the sugar industry. Outlook: Stable CRISIL believes that RBNL's financial risk profile will remain under pressure, given the aggressive gearing and large debt repayment obligations. The outlook may be revised to 'Positive' if significant improvement in average realization of sugar, or any equity infusion corrects RBNL's capital structure and enhances its liquidity. Conversely, the outlook may be revised to 'Negative' if delays in receipt of subsidy from the state government, or further stretch in working capital cycle, adds to the pressure on the liquidity. Incorporated in 1932, by Shri Rai Bahadur Narain Singh, RBNL started commercial production on 1934-35. The company is currently being managed by Hardev Singh Akoi, son of Shri Rai Bahadur Narain Singh. RAMOJI WAFER: CARE Assigns 'B' Rating to INR10.60cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B' rating to bank facilities of Ramoji Wafer And Namkeen Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 10.60 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Ramoji Wafer and Namkeen Private Limited (RWNPL) is primarily constrained on account of implementation and stabilization risk associated with the ongoing project, competition from established players and raw material price fluctuation risk. However, the rating derives strength from the promoters' experience in different industries albeit no relevant experience in the food industry and locational advantage in terms of proximity to raw material suppliers and prospective customers. The ability of RWNPL to successfully complete its debt funded capex and quickly stabilize its operations and achieve the envisaged scale of operations and cash accruals are the key rating sensitivities. Surat-based (Gujarat) RWNPL was incorporated in October 2013 to take up the business of manufacturing of potato wafers, noodles and namkeens. RWNPL is promoted primarily by Mr Jitendra Kumar Patel and Mr Dinesh Kumar Patel who have an experience of around two decades in various industries ranging from manufacturing of ceramic tiles to manufacturing of plywood. The promoters are foraying into an entirely new line of business keeping in view the increasing popularity and demand of snacks in the food industry. For setting up a manufacturing unit, the company has undertaken a project costing INR23.95 crore which is in the advanced stage of completion. RWNPL is installing a machinery costing INR14.70 crore for the production of namkeen, potato wafers, noodles and extruded products with a total capacity of 12,600 Metric Tonne Per Annum (MTPA). The entire project is proposed to be funded through a term loan of INR10.60 crore and the rest by promoter's infusion in the form of equity of INR6.50 crore and unsecured loan of INR6.85 crore. The machinery is proposed to be put to use in June 2015 and is expected to operate at 40% capacity in FY16 (refers to the period April 1 to March 31). RICHU MAL: CARE Assigns B+ Rating to INR5cr LT Bank Loan -------------------------------------------------------- CARE assigns 'CARE B+' ratings to bank facilities of Richu Mal Bishan Sarup. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Richu Mal Bishan Sarup(RMB) is primarily constrained on account of its small scale of operations, weak financial risk profile marked by fluctuating scale of operations, thin profitability margins, leveraged capital structure & weak debt coverage indicators and working capital-intensive nature of business along with associated seasonality risk. The rating is further constrained owing to high competition coupled with low entry barriers and constitution of the entity being a partnership firm. The rating, however, draws comfort from its experienced partners and RMB's long track record of operations. Going forward, the ability of the firm to increase its scale of operations while efficiently managing its working capital requirements and ability to improve the capital structure shall be the key rating sensitivities. Richu Mal Bishan Sarup (RMB) was established in 1961 as a partnership firm by Mr Richumal and Mr Bishan Sarup and the firm is currently being managed by their grandchildren viz Mr Arun Gupta, Mr Ashish Gupta and Mr Anurag Gupta. The firm is engaged in trading of food and food products such as dry fruits, desi ghee etc. The firm mainly procures ghee from processing units in Delhi and near regions whereas it procures dry fruits from traders located across Delhi, Haryana and Uttar Pradesh. RMB sells its products to retailers and distributors in Delhi and nearby regions. In FY14 (refers to the period April 1 to March 31), RMB has achieved a total operating income (TOI) of INR12.38 crore and PAT of INR0.03 crore as against TOI INR15.08 crore and PAT of INR0.03 crore in FY13. As per the provisional results during FY15, the firm achieved TOI of INR17.57 crore. RKSK OVERSEAS: ICRA Withdraws 'D' Rating on INR55cr Bank Loan ------------------------------------------------------------- ICRA has withdrawn the suspended rating of [ICRA]D assigned to INR55.0 crore bank lines of RKSK Overseas Private Limited. As per ICRA's policy on withdrawals, ICRA can withdraw the rating in case the rating remains suspended for more than three years. SIDDHIVINAYAK COTTON: CRISIL Suspends B Rating on INR130MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Siddhivinayak Cotton Industries (SVCI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SVCI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SVCI is yet to provide adequate information to enable CRISIL to assess SVCI'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'. SVCI was set up as partnership firm in 2007 at Babra (Gujarat) by Mr. Manubhai K Solia and his relatives. The firm is engaged in processing raw cotton into kapas and in oil extraction from cotton seeds. SVCI is also engaged in seed crushing. SONU BUILDERS: CRISIL Cuts Rating on INR30MM Cash Loan to B+ ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of Sonu Builders (SB) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB- /Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 32.5 CRISIL A4 (Downgraded from 'CRISIL A4+') Cash Credit 30 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The ratings downgrade reflect the deterioration in SB's liquidity with a stretch in its working capital cycle resulting in almost full utilization of its bank limits. CRISIL believes that SB will need fresh capital from its promoters, or will have to register sustained improvement in its working capital cycle, to alleviate the pressure on its liquidity. There has been a stretch in the firm's working capital cycle as reflected in an increase in its gross current assets (GCAs) to an estimated 185 days as on March 31, 2015 from 152 days as on March 31, 2014. The GCAs increased on account of delays in realisation of payments from its clients. The stretch in the working capital cycle resulted in almost full utilisation of the firm's bank limits over the last nine months ended May 2015. The ratings continue to reflect the firm's large working capital requirements, its modest scale of operations, high degree of customer concentration in its order-book, and its exposure to intense competition in the construction industry. These rating weaknesses are partially offset by the extensive experience of SB's promoter in the construction industry. Outlook: Stable CRISIL believes that SB will continue to benefit from the promoter's extensive industry experience in the construction industry. The outlook may be revised to 'Positive' if the firm registers a sustained improvement in its working capital cycle, or there is a sustained increase in its scale of operations and profitability margins. Conversely, the outlook may be revised to 'Negative' in case of steep decline in the firm's profitability margins, or a significant deterioration in its liquidity caused most likely by a further stretch in its working capital cycle. SB was set up in 1992 as a proprietorship concern by Mr. R K Chaudhary. The firm is a civil contractor, and undertakes construction of residential and commercial building. It is based in New Delhi. SRI SHREESHA: CRISIL Assigns B+ Rating to INR50.0MM Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank facilities of Sri Shreesha Rice Industries (SSRI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 2.5 CRISIL B+/Stable Long Term Loan 32.5 CRISIL B+/Stable Overdraft Facility 50 CRISIL B+/Stable The ratings reflect SSRI's weak financial risk profile, marked by modest net worth, high gearing, its modest scale and working- capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of SSRI's promoters in the rice industry. Outlook: Stable CRISIL believes that SSRI will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in the firm's revenue and profitability margins, leading to healthy accruals and improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if SSRI's working capital cycle lengthens or its accruals decline, thereby weakening its financial risk profile. Set up in 2011, SSRI is engaged in milling and processing of paddy into rice, rice bran, and broken rice. Its rice mill is located in Tumkur district in Karnataka. The company is promoted by Mr. K Nanjunda Prasad and his wife Ms. N P Sumarani. STONE CONCERN: CRISIL Reaffirms B+ Rating on INR70MM Cash Loan -------------------------------------------------------------- CRISIL's ratings on the bank loan facilities of Stone Concern Infrastructure Development Private Limited (SIPL) continue to reflect SIPL's modest scale of operations and its susceptibility to intense competition in the fragmented civil construction segment. These rating weaknesses are partially offset by extensive industry experience of the company's promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL A4 (Reaffirmed) Cash Credit 70 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 25 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SIPL will maintain its healthy business risk profile over the medium term, supported by its strong order book. The outlook may be revised to 'Positive' in case of continued improvement in the company's revenue and profitability. Conversely, the outlook may be revised to 'Negative' if SIPL undertakes a large debt-funded capital expenditure programme, leading to deterioration in its financial risk profile. Update SIPL's operating performance improved in 2014-15 (refers to financial year, April 1 to March 31), with revenue of about INR722 million compared with INR347.2 million, in 2013-14. Its operating margin improved to 11.5 per cent from 9.9 per cent over this period. The revenue growth was due to increased inflow of orders and their timely execution. The company's revenue is expected to remain at a similar level over the medium term. SIPL's gearing remained moderate estimated at 1.17 times as on March 31, 2015, and is expected to improve further over the medium term backed by the scheduled repayment of its term loan. As on March 31, 2015, the company's net worth is estimated at INR121 million. Its bank limits were highly utilised at an average of 97 per cent over the 12 months through March 2015. SIPL had a moderate current ratio of about 1.45 times as on March 31, 2015. CRISIL believes that the company's financial risk profile will improve marginally over the medium term in keeping with its stable operations. SIPL reported a profit after tax (PAT) of INR10.7 million on an operating income of INR347.2 million for 2013-14, as against a PAT of INR6.4 million on an operating income of INR198.3 million for 2012-13. SIPL was originally established in Kolkata in the early 1990s as a proprietorship concern; this firm was reconstituted as a private limited company in 2008. The company is a Class-A civil contractor specialising in road projects. Mr. Kanak Changlani oversees the company's daily operations. SUPER AGRO: ICRA Reaffirms B+ Rating on INR8.0cr LT Loan -------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR8.00 crore fund based bank facilities of Super Agro Industry (SAI). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Funds Based 8.00 [ICRA]B+; Reaffirmed Limits ICRA has taken a consolidated view of the three group firms (Super Agro Industry, Thakkar Dass Nand Gopal, and Surya Agro Industry) which have similar operational profile. ICRA's rating continues to be constrained on account of SAI's low value additive nature of business which, coupled with high competitive intensity, owing to presence of several unorganized players in the market, results in low margins and modest debt protection indicators. The operating income of the group declined significantly in FY2015 due to lower trading activities as well as lower sales volumes, however the operating margin registered an improvement. The rating also factors in the high working capital requirements during the cotton procurement season which impacts the firm's liquidity position and SAI's vulnerability towards changes in Government regulations and fluctuations in cotton prices which causes volatility in its accruals. ICRA also notes the partnership constitution of the firm which exposes it to risks like limited ability to raise equity capital, withdrawal of capital, risk of dissolution etc. ICRA's rating continues to derive comfort from the long standing experience of the promoters of the firm in the cotton industry, established relationships with clients and proximity of the firm to the cotton producing belt in Gujarat. Going forward, the ability of the firm to increase its scale of operations as well as margins while maintaining its liquidity will be the key rating sensitivties. SAI is part of the Sirsa, Haryana based Thakkar Dass Group promoted by late Mr. Nand Gopalji Gupta, and is engaged in the business of cotton ginning. The promoters have been into this business since 1956. The group has four cotton ginning units and one trading unit. Under Super Agro Industry there is a ginning and pressing unit in Sirsa (Haryana). The flagship firm of the group Thakar Dass Nand Gopal has three operating units: trading unit in Fatehabad (Haryana), and Ginning and pressing units each in Sanosara(Gujarat) and Kothara(Gujarat). The other entity of the group, Mahaluxmi Cotton & General Mills has a ginning and pressing unit in Jind (Haryana). Recent results The firm, on a provisional basis, reported an Operating Income (OI) of INR26.67 crore and a net profit of INR0.08 crore for FY2015, as against an OI of INR22.40 crore and a net profit of INR0.43 crore for the previous year. THAKAR DASS: ICRA Reaffirms B+ Rating on INR12cr Fund Based Loan ---------------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR12.00 crore (increased from INR10.60 crore) fund based limits, INR0.80 crore (reduced from INR2.10 crore) term loans and INR0.20 crore (reduced from INR0.30 crore) unallocated limits of Thakar Dass Nand Gopal (TDNG). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term - Fund Based Limits 12.00 [ICRA]B+; Reaffirmed Long Term - Term Loans 0.80 [ICRA]B+; Reaffirmed Unallocated 0.20 [ICRA]B+; Reaffirmed ICRA has taken a consolidated view of the three group firms (Super Agro Industry, Thakar Dass Nand Gopal, and Surya Agro Industry) which have a similar operational profile. ICRA's rating continues to be constrained on account of TDNG's low value additive nature of business which, coupled with high competitive intensity, owing to the presence of several unorganized players in the market, results in low margins and modest coverage indicators. The operating income of the group declined significantly in FY2015 due to lower trading activities as well as lower sales volumes, however the operating margins registered an improvement. The rating also factors in the high working capital requirements during the cotton procurement season which impacts the firm's liquidity position and TDNG's vulnerability towards changes in Government regulations and fluctuations in cotton prices which causes volatility in its profitability. ICRA also notes the partnership constitution of the firm which exposes it to risks like limited ability to raise equity capital, withdrawal of capital, risk of dissolution etc. ICRA's rating continues to derive comfort from the long standing experience of the promoters of the firm in the cotton industry, established relationships with clients and proximity of the firm to the cotton producing belt in Gujarat. Going forward, the ability of the firm to increase its scale of operations as well as margins while maintaining its liquidity will be the key rating sensitivties. TDNG is part of the Sirsa, Haryana based Thakkar Dass Group promoted by late Mr. Nand Gopalji Gupta, and is engaged in the business of cotton ginning/trading. The promoters have been in this business since 1956. The group has four cotton ginning units and one trading unit. Under TDNG, there are three operating units located in Fatehabad (Haryana), Sanosara (Gujarat), and Kothara (Gujarat). The Fatehabad unit is a trading unit while the firm has a Ginning and pressing unit each in Sanosara and Kothara. The other two entities of the group, Super Agro Industry and Mahaluxmi Cotton & General Mills have a ginning and pressing unit in Sirsa and Jind (Haryana) respectively. Recent results The firm, on a provisional basis, reported an Operating Income (OI) of INR51.17 crore and a net profit of INR0.75 crore for FY2015, as against an OI of INR66.66 crore and a net profit of INR0.91 crore for the previous year. UJJAIN PACKAGING: CRISIL Reaffirms 'B' Rating on INR45.7MM Loan --------------------------------------------------------------- CRISIL's rating on the bank facilities of Ujjain Packaging Pvt Ltd (UPPL) continues to reflect UPPL's modest scale of operations in the highly fragmented packaging industry and the company's large working capital requirements. The rating also factors in the pressure[on UPPL's weak financial risk profile. These rating weaknesses are partially offset by the extensive experience of UPPL's promoters in the packaging industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 2.1 CRISIL B/Stable (Reaffirmed) Term Loan 45.7 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that UPPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if UPPL stabilises its expanded capacity as per schedule and generates significantly large cash accruals leading to strong debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case of a delay in stabilisation of enhanced capacity or low revenue or profit margins, impacting the company's financial risk profile. Update UPPL completed its project to convert its semi-automated corrugation line to a fully automated line in July 2014 (against earlier expectation of May 2014). The company's production capacity has increased to 900 tonnes per month (tpm) from 300 tpm. UPPL's revenue for 2014-15 (refers to financial year, April 1 to March 31) is estimated at around INR80.0 million, which is less than the expected INR220.0 million on account of teething problems in the new facility. However, the company's business risk profile is expected to improve with increase in capacity utilisation, resulting in turnover of INR180 million to INR200 million and operating margin of 12 to 15 per cent, over the medium term. UPPL's operations remain working capital intensive with gross current assets estimated at 163 days as on March 31, 2015, broadly in line with expectation and previous trend. The company maintains large inventory of around three months and has debtors of 40 to 60 days. CRISIL believes that UPPL's working capital requirements will remain large over the medium term. UPPL's financial risk profile remains weak, marked by high gearing, weak debt protection metrics, and small net worth. The company's liquidity remains stretched; its cash accruals are expected at around INR9 million per annum vis-a-vis annual debt obligations of INR7 million over the medium term. UPPL's bank limit utilisation is high, averaging 98 per cent for the 12 months through March 2015. However, UPPL's promoters have supported the company's liquidity through timely unsecured loans, which stood at INR17 million as on March 31, 2015. UPPL was incorporated in 2008 by Mr. Anand Bangur and Mr Vishnu Jajoo. The company manufactures corrugated packing boxes. Its manufacturing unit in Ujjain (Madhya Pradesh) has a automated corrugation line. UPPL reported a net loss of INR1.10 million on net sales of INR46.0 million for 2013-14, against profit after tax of INR0.69 million on net sales of INR41.0 million for 2012-13. VERA INDIA: ICRA Assigns 'B+' Rating to INR18cr Cash Credit ----------------------------------------------------------- ICRA has assigned its rating of [ICRA]B+ to the INR18 crore long term fund based facilities of Vera India Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- Cash Credit 18.00 [ICRA]B+; assigned ICRA's rating is constrained by thin operating margins (0.90% in 2013-14 ) due to the low value add nature of trading business and fragmented industry structure and the profitability being exposed to agro-climatic risks which can cause volatility in raw material prices. The rating also takes into account the moderately high working capital requirements due to high receivable and inventory days; the company's tight liquidity position with average working capital utilization of 94% during 2013-14 and the weak return and coverage indicators with ROCE of 5.24% ,interest coverage of 1.66 times and TD/OBDITA of 20.51 times during 2013-14. The rating, however, favourably factors in the extensive experience of the promoters in edible oils & oil seeds business with strong presence in the state of Punjab through associate concerns and the favourable location of the company in Muktsar (Punjab) facilitating finished goods procurement by virtue of proximity to cotton and mustard seed producing belts of the country. VIL was incorporated in July 2013 with Mrs. Sita Rani, Mr. Vijay Kumar and Mr. Rakesh Kumar as its promoters. The company began operations in August 2013 and is engaged in trading of tea, cotton and mustard seeds, cakes and oil. The firm operates out of its office situated at Muktsar, Punjab, in the same area as the group's other manufacturing firms. The plant has a built up area of ~ 1 acre. The goods for trading are procured from the group companies- Vijay Oil Mills (mustard oil and cakes) and Vijay Agro Foods (tea). The products are sold through distributors under the brand name of 'VERA' to customers across Punjab, HP, J&K, Delhi, Haryana and other parts of North India. During the period from September 2014 - March 2015, VIL reported a net profit of INR0.08 crore on an operating income of INR28 crore. VIRAJ SPINNERS: CRISIL Assigns 'B' Rating to INR337.3MM LT Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Viraj Spinners Ltd (VSL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 62.7 CRISIL B/Stable Long Term Loan 337.3 CRISIL B/Stable The rating reflects VSL's initial phase and small scale of operations in the intensely competitive cotton spinning industry, and the company's below-average financial risk profile marked by high gearing. These rating weaknesses are partially offset by the extensive experience of VSL's promoters in the cotton spinning industry and their funding support to the company. Outlook: Stable CRISIL believes that VSL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of early ramp-up in its operations leading to sizeable cash accruals or large capital infusion by the promoters to support its capital structure. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile, particularly its liquidity, weakens because of low cash accruals or stretch in its working capital cycle or any debt- funded capital expenditure. Incorporated in 2010, VSL manufactures cotton yarn. VSL's key promoter is Mr. Sadashiv Patil and its manufacturing facilities are in Vita (Maharashtra). The company has capacity of 18,720 spindles and commenced commercial operations in January 2015. VS METALLIC: ICRA Assigns 'B' Rating to INR10cr Fund Based Loan --------------------------------------------------------------- ICRA has assigned its long term rating of [ICRA]B to the INR10.00 crore fund based facilities of VS Metallic Private Limited. ICRA has also assigned its short term rating of [ICRA]A4 to the INR10.00 crore non-fund based facilities of VSMPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based limits 10.00 [ICRA]B (assigned) Non fund based limits 10.00 [ICRA]A4 (assigned) The assigned ratings are constrained by the company's moderate scale of operations and thin profitability margins on account of intense competition and limited value additive nature of the trading business. The rating also reflects the company's stretched capital structure characterised by high debt equity ratio. ICRA has also taken into consideration the inherent cyclicality and intensely competitive nature of the iron and steel industry. The rating however draws comfort from the long experience of the promoters of the company in metal trading business and the low price fluctuation risk on account of less inventory maintained by the company. Going forward, the ability of the company to maintain a prudent capital mix and healthy growth in revenues will remain key rating drivers. VS Metallic Pvt. Ltd. (VSMPL) was established in the year 2011 with office located in Delhi. The company is engaged in trading of pig iron, cast iron and iron scrap. VSMPL commenced commercial operations in July 2013. VSMPL is promoted by Mr. Rakesh Gupta. Recent Results During the financial year 2013-14, the company reported a profit after tax (PAT) of INR0.27 crore on an operating income of INR56.44. During FY15, on a provisional basis the, the company has achieved sales of INR74.75 crore. ================= I N D O N E S I A ================= INDONESIA: Default Risk Jumps Most in Asia on Fund Exit Concerns ---------------------------------------------------------------- Yudith Ho and Y-Sing Liau at Bloomberg News report that the cost to insure Indonesia's bonds against default rose to the highest this year as the falling rupiah and accelerating inflation fueled concern foreign investors will pull out of the country. Five-year credit default-swaps on the debt jumped 19 basis points to 180 in the past two weeks, Bloomberg says. Malaysia's risk rose the same amount to make the nations the worst performers in Asia, the report relates. Indonesia's central bank Governor Agus Martowardojo said June 8 that the authority sees opportunities to buy the notes when yields rise. Bloomberg notes that inflation will remain above 7 percent through September, Bank Indonesia forecasts, as an El Nino weather pattern threatens to damage crops. The rupiah's descent to a 17-year low is limiting scope for the central bank to support the economy by cutting interest rates, Bloomberg states. "The concern is that all these factors will see investors demanding much higher yields and readjusting their positions," Bloomberg quotes Ikhwani Fauzana, head of rates trading at PT Bank Negara Indonesia in Jakarta, as saying. "But it's too risky for the central bank to lower rates to help growth as the rupiah's response would be drastic, so they're caught in a difficult place." The rupiah has led declines in Asia to drop 7.5 percent this year to 13,385 a dollar and reached the weakest since August 1998. If it falls past 13,400, foreign investors who pumped IDR46 trillion ($3.4 billion) into Indonesian debt in January and February, will start to incur losses, Bloomberg discloses citing PT Mandiri Sekuritas, a unit of the country's largest lender. The yield on 10-year sovereign bonds jumped 25 basis points this week to a 15-month high of 8.77 percent, the report says. Four of the last five sovereign auctions failed to meet their targets. The central bank sees risk of a currency war over the next three years if the Federal Reserve rates normalization happens gradually, Martowardojo said on June 8, adding that the authority will seek to maintain exchange-rate stability, adds Bloomberg. ==================== N E W Z E A L A N D ==================== HAMILTON'S 131: Clothing Store Closes Doors After 30 Years ---------------------------------------------------------- Stacey Oliver at Stuff.co.nz reports that clothing store owner Gaye Watson has called time on 131 Fashions after three decades of styling the women of the Waikato. Stuff.co.nz says Hamilton's 131 Fashions, a women's clothing store, has been the first stop for thousands of mothers of the bride and groom in their search for that perfect outfit. Ms. Watson's flawless eye for beautiful clothes has seen her hand pick those dresses from the labels such as Trelise Cooper and Anthea Crawford, the report says. And at the end of this month, Ms. Watson will say farewell to the Pembroke St clothes store that has been her "fashion-family" for 30 years. The store will close around June 27, the report relays. They had tried to sell the business, but it had proved difficult, she said. Closing the store had been a "very" difficult decision, according to Stuff.co.nz. "But I've come to terms with it now. I've come to terms with it because I want to get on the plane and be with those children," the report quotes Ms. Watson as saying. Those children are two granddaughters, 11 and 4, and two grandsons, 8 and 7 in the United Kingdom, the report notes. Her only son Greg and his wife Natasha moved to the United Kingdom 14 years ago. According to Stuff.co.nz, Ms. Watson admits she has "mixed feelings" about moving on. "But 30 years is a good innings. I have lots of lovely memories of 131, lots of lovely memories of this corner." The closure will mean the loss of one part time job, the report adds. NZ DIRECTORIES: Creditors to Vote June 15 on Winding Up Company --------------------------------------------------------------- Jonathan Underhill at BusinessDesk reports that creditors of NZ Directories Holdings, the owner of the Yellow directories service, will vote next week on a plan to wind up the company, putting the assets into a new vehicle that would issue them with securities in return for relinquishing claims to NZ$385 million of debt. BusinessDesk relates that the company said in a notice of meeting that NZ Directories has gross assets of NZ$182.5 million and there is "no realistic prospect that the company can refinance the existing debt facilities with a third-party financier" when they come due on August 31. "The only financiers in a position to provide finance to the company on expiry of the existing debt facilities are the restructure creditors, who are the existing financiers to and ultimate owners of the company," said the notice, notes the report. BusinessDesk says the creditors would be issued shares and notes in the new vehicle, Yellow Holdings, which was incorporated on April 21. Brett Chenoweth, the chairman of NZ Directories, is the sole shareholder of Yellow Holdings. According to BusinessDesk, the company said the board is of the view that failure to approve the plan to restructure the financing arrangements would force the company to cease trading and result in receivership or liquidation. The June 15 vote requires support from 75% of the creditors by value, the report says. The notice of meeting said creditors York Global Finance, which would hold about 25% of the shares and debt of Yellow Holdings, Varde Investment Partners, Morgan Stanley, Bennett Restructuring Fund, Bennett Offshore Restructuring Fund, Silver Point Luxembourg Platform, Macquarie Bank, SC Lowy Primary Investments, Merrill Lynch Capital Services, Staple Street Global Opportunities (Master) LP and Deutsche Bank "have agreed in principle to vote in favour of the restructure compromise," BusinessDesk relays. BusinessDesk relates that the restructuring would effectively be the second time in four years that creditors have seized control of the directories business. According to the report, bankers to the company formerly known as Yellow Pages Group wrote off NZ$1.05 billion of debt when they took control of the business in 2011. They were issued 250 million shares held via Yellow Pages Equity Trust and NZ$500 million of senior notes, wiping out the equity of the original owners, Hong Kong-based Unitas Capital and Canada's Ontario Teachers' Pension Plan, which bought Yellow Pages from Telecom for NZ$2.24 billion in 2007 in a leveraged buy-out, the report relays. NZ Directories Holdings, formerly known as Yellow Pages Group was formed in 1988 and publishes the print, online and mobile directories for Yellow, as well as the White pages(R) and the Local directoryTM. Yellow Pages owns the 018(R) directory assistance service, a majority stake in 50s-plus website grownups.co.nz, and publishes the Retirement guideTM and New Zealand tourism guideTM, an award-winning online tourism directory. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***