/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/150730.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 Thursday, July 30, 2015, Vol. 18, No. 149 Headlines A U S T R A L I A ALLOWAY COUNTRY: Club to Stay Open Following Creditor Agreement CUMMING ENTERPRISES: Enters Voluntary Liquidation HEARON ELECTRICAL: First Creditors' Meeting Slated For August 6 HEAVY HAULAGE: Poorly Costed Work, Administrators Say PRO CARPETS: First Creditors' Meeting Slated For August 7 SHARP ONE: First Creditors' Meeting Slated For August 5 SOUNDWAVE FESTIVAL: Parent Escapes Spotless Liquidation Bid TROY TANNER: First Creditors' Meeting Set For August 5 C H I N A CAR INC: S&P Affirms BB+ Corporate Credit Rating; Outlook Stable CHINA SOUTH CITY: S&P Lowers CCR to 'B+'; Outlook Stable OCEANWIDE HOLDINGS: Fitch Affirms 'B' LT Issuer Default Rating I N D I A ADROIT INFRATECH: CRISIL Assigns B+ Rating to INR56.6MM Term Loan ANUPAM NIRMAN: ICRA Suspends 'B' Rating on INR8cr Cash Credit APS STEELS: CRISIL Reaffirms 'B' Rating on INR65MM Cash Loan BL KASHYAP: CRISIL Reaffirms 'D' Rating on INR3.75BB Loan CHHABRA ISPAT: Ind-Ra Hikes Long-Term Issuer Rating to 'IND BB+' CORE GREEN: ICRA Ups Rating on INR206.6cr Term Loan to 'C' DIEHARD DIES: CRISIL Suspends 'D' Rating on INR155.6MM Loan EXCEL: CRISIL Reaffirms B+ Rating on INR22.8MM Bank Loan GALAXY MACHINERY: CRISIL Reaffirms B+ Rating on INR73MM Bank Loan GANPATI FOODS: CRISIL Reaffirms B+ Rating on INR165MM Loan GOPAL MASTERBATCH: CRISIL Suspends B+ Rating on INR50MM Loan HI-TECH ROBOTICS: Ind-Ra Hikes LT Issuer Rating to 'IND BB+' INDESYS EQUIPMENTS: CARE Rates INR4.50cr Short Term Loan at 'D' IVORY CLOTHING: CRISIL Assigns B+ Rating to INR10MM Loan JOMSONS ENTERPRISES: CRISIL Assigns B+ Rating to INR110MM Loan KAYEM FOOD: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating LEKH RAJ: CRISIL Reaffirms 'B' Rating on INR80MM Loan MAINI GROUP: ICRA Assigns B+ Rating to INR7.50cr LT Loan MIL INDUSTRIES: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating NIKUNJ EXPORTS: CRISIL Assigns 'B' Rating on INR62.5MM LT Loan NSR STEELS: CRISIL Suspends 'D' Rating on INR110MM Bank Loan ORION LAMINATES: ICRA Suspends D Rating on INR10.10cr Term Loan PAARTH INFRATECH: CRISIL Reaffirms B Rating on INR360MM Loan RAGHUVANSHI INDUSTRIES: CRISIL Reaffirms B+ INR200M Loan Rating ROYAL TYRES: CRISIL Suspends B Rating on INR65MM Term Loan SADAN REALTECH: CRISIL Reaffirms B Rating on INR202.8MM Loan SAHARA GROUP: Sebi Cancels Mutual Funds' Registration SAIL BANSAL: CRISIL Suspends B- Rating on INR60MM Cash Credit SAMRAJ CONSTRUCTIONS: ICRA Assigns 'B' Rating to INR13cr LT Loan SARAWAGI AUTOMOBILES: ICRA Revises Rating on INR8.25cr Loan to B SAS AUTOCOM: CRISIL Suspends 'D' Rating on INR118.5MM Cash Loan SHIEL AUTOS: CRISIL Reaffirms B+ Rating on INR75MM Cash Credit SIDDHIVINAYAK POULTRY: CRISIL Reaffirms B Rating on INR80MM Loan SILVER GLOBAL: CRISIL Suspends 'D' Rating on INR71MM Term Loan SINGHVI FASHIONS: ICRA Ups Rating on INR19.63cr Term Loan to B+ SITA MAA: CARE Assigns B+ Rating to INR15cr Long Term Loan SOLAN SPINNING: CRISIL Reaffirms B+ Rating on INR75MM Term Loan SRI KRISHNA: CRISIL Suspends B+ Rating on INR60MM Cash Credit SRI SEETHALAKSHMI: CRISIL Suspends B+ Rating on INR37MM LT Loan SWASTIK MARKETING: ICRA Reaffirms B+ Rating on INR2.50cr Loan SWASTIK TUNGSTEN: CARE Reaffirms B+ Rating on INR11.60cr LT Loan TOLAR OCEAN: CRISIL Reaffirms B+ Rating on INR40MM LT Loan US GRANITES: ICRA Reaffirms 'B' Rating on INR5.0cr LT Loan VINSURA WINERY: CRISIL Suspends 'D' Rating on INR38MM Cash Loan J A P A N TOSHIBA CORP: To Cut Interim CEO Pay by 90% on Accounting Scandal TOSHIBA CORP: Appoints Committee to Prevent Further Scandals N E W Z E A L A N D DESTINY SCHOOL: 'Technically Insolvent' After NZ$240K Loss - - - - - ================= A U S T R A L I A ================= ALLOWAY COUNTRY: Club to Stay Open Following Creditor Agreement --------------------------------------------------------------- NewsMail reports that a decision has now been made on the future of the Alloway Country Club after it was placed into voluntary administration in May. Sydney-based Hall Chadwick partner Kathleen Vouris told the NewsMail the 29 creditors owed AUD188,000 by the company made an agreement that became binding this month. "Creditors resolved to accept a Deed of Company arrangement," the report quotes Ms Vouris as saying. A Deed of Company arrangement means the Bundaberg company will be placed back into the hands of the Alloway Country Club directors, the report notes. "In this circumstance, it's a return of 100 cents in the dollar to creditors over a period of time," Ms Vouris said, the report relays. CUMMING ENTERPRISES: Enters Voluntary Liquidation ------------------------------------------------- Broede Carmody at SmartCompany reports that the company that leased an iconic homestead southwest of Melbourne has collapsed, leaving locals concerned about the heritage-listed property and at least one bride-to-be having to scramble to find a new wedding venue. Cumming Enterprises Melbourne, which leased the Point Cook Homestead from Parks Victoria, entered voluntary liquidation on July 7, the report says. SmartCompany says David Quin and Clyde White from PCI Partners have been appointed liquidators and a creditors meeting was held on July 24. Mr. Quin confirmed to SmartCompany that it was the business that was leasing the Point Cook Homestead that has entered voluntary liquidation rather than the homestead itself. "The business has shut down," the report quotes Mr. Quin as saying. "My role now is to investment the company's affairs. I have to do my investigation and then I will lodge a report with the Australian Securities and Investments Commission. I will look to see if there are any assets to be realised. The company leases the property from Parks Victoria." Asked whether there will be any return to creditors, Mr. Quin said at this stage it appeared unlikely, SmartCompany relays. The liquidator did not comment on the reasons why the business collapsed, the report notes. It is understood around nine employees have been affected by the collapse of the company, with SmartCompany aware of at least one bride-to-be who has lost her wedding day deposit and been forced to book elsewhere as a result of the liquidation. SmartCompany relates that the district manager of Parks Victoria, Rocky Barca, said the Point Cook Coastal Park along with the homestead and accompanying cafe were closed until further notice. Cumming Enterprises Melbourne facilitated weddings and other functions at the historical homestead. HEARON ELECTRICAL: First Creditors' Meeting Slated For August 6 --------------------------------------------------------------- Roger Darren Grant and Shane Leslie Deane of Dye & Co. Pty Ltd were appointed as administrators of Hearon Electrical Services Pty. Ltd. on July 29, 2015. A first meeting of the creditors of the Company will be held at 165 Camberwell Road, Hawthorn East 3123, on Aug. 6, 2015, at 10:30 a.m. HEAVY HAULAGE: Poorly Costed Work, Administrators Say ----------------------------------------------------- The Courier Mail reports that Heavy Haulage Australia, star of TV series MegaTruckers, went bust partly thanks to failing to accurately cost jobs it worked on, administrators have determined. The Courier Mail relates that in a creditors report out this week, administrators Ferrier Hodgson said this meant Brisbane-based HHA could not accurately determine if work was profitable. They also reaffirmed earlier views that HHA, which also sponsored V8 Supercars, had a "historical culture of indulgence and lack of financial discipline," the report says. According to the report, the criticisms go beyond initial reasons provided in a director's statement about the failure of HHA. In that director's statement, the blame was linked to slump in energy and infrastructure sectors, meaning HHA could not support its high fixed costs, the report relates. HHA went into administration in late June, and on July 10 the administrators revealed an attempt to sell the business had been unsuccessful, the report discloses. Staff lost jobs and assets including more than 50 prime movers are to be parcelled off. HHA founder Jon Kelly, 35 and an ex-bankrupt, has declined to comment to The Courier Mail and was not able to be reached at his Brisbane home on July 24. He has argued in industry publication Big Rigs that transport outfit McAleese, which bought a 50 per cent stake in November, had taken over control and ignored his recommendations. McAleese has declined to comment but told the stockmarket it could sue over its purchase of HHA shares, and has lost $17 million, The Courier Mail reports. According to the Courier Mail, the administrator's report estimated creditors are owed AUD77.6 million. The Courier Mail relates that while Ferrier Hodgson backed the director statement about the resources downturn hurting business, they listed several other reasons for failure including: -- "lax attitude" towards maintaining financial books "especially prior" to McAleese's investment; -- legal disputes; -- grounding of the Queensland-based fleet in May by Queensland's transport department for historical permit breaches. According to the Courier Mail, Ferrier Hodgson was also examining whether up to 15 assets were sold in the six months before HHA went under, sales that "may have been below market value, or where the proceeds of the sales may not have been received by the group entities which owned them". "In certain circumstances, the asset sales were not approved by one of HHA's directors," the report said. The Courier Mail says the creditors' report reveals HHA had quickly decelerated from a AUD4.9 million profits in 2013 to AUD1.1 million profit in 2014 to losing AUD10 million in the last eight months of trading. According to the Courier Mail, pressure had mounted in the past six months, with lenders ANZ and GE demanding fleet finance repayments, suppliers either stopping or reducing credit, and HHA entering repayment arrangements with the tax office and receiving "a number of legal letters of demand for payment". The Courier Mail relates that the administrators said it is possible that HHA was insolvent before they were called in. They also could examine AUD3 million in payments to six creditors made before their appointment, with the possibility of recovery action, the Courier Mail adds. About Heavy Haulage Heavy Haulage Australia specialised in haulage movements of between 4,000 and 8,000 tonne for the infrastructure and mining sectors. John Lindholm, Brendan Richards and Tim Michael of Ferrier Hodgson were appointed joint and several Voluntary Administrators of Heavy Haulage Australia Pty Limited and associated entities on June 28, 2015. The Administrators were subsequently appointed Voluntary Administrators to Texas T Holdings Pty Ltd on June 29, 2015, pursuant to section 436C of the Act by the company's secured creditor, GE Commercial Pty Ltd. PRO CARPETS: First Creditors' Meeting Slated For August 7 --------------------------------------------------------- Frank Lo Pilato and Mitchell Herrett of RSM Bird Cameron Partners were appointed as administrators of Pro Carpets (ACT) Pty Ltd on July 28, 2015. A first meeting of the creditors of the Company will be held at RSM Bird Cameron Partners, Level 1, 103 Northbourne Avenue, in Turner, on Aug. 7, 2015, at 10:00 a.m. SHARP ONE: First Creditors' Meeting Slated For August 5 ------------------------------------------------------- Christopher John Palmer of O'Brien Palmer was appointed as administrators of Sharp One Couriers Pty Ltd on July 27, 2015. A first meeting of the creditors of the Company will be held at O'Brien Palmer, Level 14, 9 Hunter Street, in Sydney, Aug. 5, 2015, at 10:30 a.m. SOUNDWAVE FESTIVAL: Parent Escapes Spotless Liquidation Bid ----------------------------------------------------------- Shannon Deery at Herald Sun reports that Soundwave music festival has dodged another legal bid to have the company wound up. According to the report, Spotless Facility Services had applied to the Victorian Supreme Court to wind up Soundwave Festival Pty Ltd, the festival's parent company, on the grounds of insolvency. Herald Sun relates that court documents alleged Soundwave owed Spotless almost AUD50,000 in unpaid invoices dating as far back as March last year. But the action was discontinued at a brief court hearing on July 29, the report says. It is understood the parties reached an out-of-court settlement since an administrative court hearing last week, the report notes. Herald Sun says it was the second time in the past 12 months moves had been made to wind up the festival, after a similar application by Queensland company Pink Fence. That action was similarly discontinued just weeks after it was launched. According to the report, Soundwave promoter A.J. Maddah said in February the festival had been plagued by a decline in ticket sales. Herald Sun relates that Mr Maddah said in South Australia sales had dropped to a four-year low, forcing him to pull the pin on the Adelaide event. "I can't ask the other states to subsidise it anymore," the report quotes Mr. Maddah as saying. "In 2012 we had 37,000 (ticket sales), in 2013 we had 45,000, last year we had 20,000 and this year we've got around 12,000." The festival is scheduled to hit Melbourne on Australia Day next year, the report adds. TROY TANNER: First Creditors' Meeting Set For August 5 ------------------------------------------------------- Gavin Moss and Nick Combis of Vincents Chartered Accountants were appointed as administrators of Troy Tanner Hair Design Pty Limited on July 24, 2015. A first meeting of the creditors of the Company will be held at the offices of Vincents Chartered Accountants, Level 19, MLC Centre, 19-29 Martin Place, in Sydney, on Aug. 5, 2015, at 11:00 a.m. ========= C H I N A ========= CAR INC: S&P Affirms BB+ Corporate Credit Rating; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB+' long-term corporate credit rating on CAR Inc. The outlook is stable. At the same time, S&P affirmed its 'BB+' issue rating on the outstanding senior unsecured notes of the China-based car rental company. S&P also affirmed its 'cnBBB+' long-term Greater China regional scale ratings on CAR and the notes. "We affirmed the rating because we expect the revenue growth from CAR's long-term rental business to offset its increased debt leverage [ratio of debt to EBITDA] following its collaboration with UCAR Technology Inc.," said Standard & Poor's credit analyst Gloria Lu. On July 1, 2015, CAR announced it would subscribe to US$125 million worth of preference shares in UCAR, a start-up chauffeured car service company. In early 2015, both companies signed an agreement on CAR providing vehicle rentals to UCAR and co-branding arrangements. S&P expects CAR's increased capital expenditure to expand its fleet following the agreement and new investments in UCAR to weaken its debt leverage. S&P anticipates that the company's ratio of debt to EBITDA will weaken to 2.5x-2.9x over the next two years, from 1.2x in 2014, and its ratio of funds from operations (FFO) to debt should stay at 30%-35%. The ratios will remain commensurate with an "intermediate" financial risk profile but with much a reduced headroom. Hence, the company's discipline toward capital expenditure is critical to sustain its financial strength. The tie-up should increase the revenue and profitability of CAR's long-term rental business. S&P estimates that CAR's total rental revenue will increase 60%-70% in 2015 and 2016 because of a larger fleet and higher revenue per available car. CAR's exposure to China's fragmented car rental market, smaller scale than global peers', and short operating track record underpin its "fair" business risk profile. These factors are tempered by the company's strong market position in China's short- term self-drive car rental market and high exposure to the relatively stable demand at locations excluding airports (off- airport). CAR also benefits from some entry barriers to markets in China's main cities. "In our view, the collaboration with UCAR could improve CAR's overall business mix, diversify its revenue sources, and improve the company's fleet utilization," said Ms. Lu. "However, major constraints over the next two years include high competition in the chauffeured services segment, the short record of UCAR's operations and collaboration, and regulatory risks." The rating on the notes is the same as the rating on CAR even though the ratio of priority claims to total assets could exceed our 15% threshold in 2015. S&P expects CAR's use of the notes proceeds through shareholder loans to repay onshore borrowings and to fuel fleet expansion to mitigate the structural subordination risk associated with debt at the holding company level. In addition, CAR operates in different regions in China with subsidiaries that are operationally integrated. S&P anticipates that such diversity will also reduce the structural subordination risk. S&P expects the company to maintain its low level of secured debt at its operating subsidiaries. The stable outlook reflects S&P's view that CAR's cash flows from both short-term and long-term rentals will continue to increase, particularly after its collaboration with UCAR. The growing cash flows will balance out the increase in CAR's capital expenditure from fleet expansion. S&P expects the EBITDA margin in the rental business to continue to increase, and keep the debt-to-EBITDA ratio below 3x over the next 12 months. Also, S&P don't foresee any large acquisitions over the period, and therefore expect the FFO-to-debt ratio to stay between 30%-40%. S&P could lower the rating if CAR's debt-to-EBITDA ratio exceeds 3x or FFO-to-debt ratio falls below 30% on a consistent basis. This could happen if the company makes material debt-funded acquisitions or the performance of its rental business deteriorates due to weak demand, significantly eroding profitability. S&P may also lower the rating if CAR faces associated risks from its cooperation with UCAR, such as sudden changes in the long-term rental agreement, which could weaken S&P's assessment of CAR's business strength. The lack of business diversity and CAR's short operating record limit rating upside. However, S&P could raise the rating only once CAR successfully executes its growth strategy in China, demonstrates a record of prudent financial management, and consistently generates positive free operating cash flows, while maintaining its operating margins and financial strength. CHINA SOUTH CITY: S&P Lowers CCR to 'B+'; Outlook Stable -------------------------------------------------------- On July 28, 2015, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on China-based real estate developer China South City Holdings Ltd. to 'B+' from 'BB-'. The outlook is stable. S&P also lowered its long-term issue rating on the company's senior unsecured notes to 'B' from 'B+'. At the same time, S&P lowered its long-term Greater China regional scale ratings on CSC to 'cnBB' from 'cnBB+' and on the notes to 'cnBB-' from 'cnBB'. "We downgraded CSC to reflect our expectation that its cash flows and leverage are likely to remain weak over the next six to 12 months following a sharp deterioration in fiscal 2015 [ended March 31, 2015]," said Standard & Poor's credit analyst Dennis Lee. "There is limited visibility over a recovery, given the company's high exposure to cities with large oversupply. CSC's contract sales and revenue in fiscal 2015 were significantly lower than our expectation. We have lowered our base-case contract sales and revenue estimates for fiscal 2016-2017." S&P expects CSC's sales execution to remain weak in fiscal 2016. This is mainly due to the continuing slowdown in demand for trade centers in CSC's new markets, in line with S&P's expectation of slower economic growth for China. In S&P's view, demand-to-supply ratio could become more severe in certain lower-tier cities in the less-developed provinces that CSC has entered, e.g. Harbin and Nanning. In fiscal 2015, CSC achieved Hong Kong dollar (HK$) 11.3 billion in contract sales, which was significantly below its budget of HK$14.1 billion. In S&P's view, CSC's profitability is likely to decline slightly in fiscal 2016 as the recognition of lower-margin projects grows. However, S&P still expects the company to maintain an EBITDA margin of 35%-40%, which is higher than that of most peers with a similar business risk position and financial risk profile. This margin level is mainly due to the advantage of very low land costs, reflecting CSC's exposure to lower-tier cities. As of the end of fiscal 2015, CSC's average cost of its land reserves was still lower than 5% of its average selling price. CSC's cash flow and leverage ratios are likely to remain weak over the next two years. S&P bases its view on the likelihood that the increase in the company's EBITDA will not offset the increase in debt, and that sales execution is unlikely to materially improve. S&P expects CSC's debt-to-EBITDA ratio to remain at 6.0x-7.0x and EBITDA interest coverage ratio to be 2.0x-2.5x for fiscal 2016. S&P has lowered its assessment of the company's financial risk profile to "aggressive" from "significant" based on the factors. S&P expects CSC's recurring income to grow steadily by 15%-20% annually for the next two years as the company increases its property leasing area and maintains a stable occupancy ratio of about 75% in its logistics and trade centers. As of the end of fiscal 2015, CSC's leasable area was nearly 1 million square meters, which generated HK$574 million in rental income. However, recurring income is not material as a stabilizing factor for the credit profile. CSC's credit profile is largely driven by the volatile and cyclical property development business. In S&P's view, CSC will continue to manage its debt maturity profile through extending maturities and reduce its borrowing costs. Since the beginning of fiscal 2016, the company has drawn down Chinese renminbi (RMB) 3.5 billion from medium-term notes and a corporate bond in China. CSC's average funding costs decreased to 6.8% in 2015, which was lower than similarly rated peers'. "The outlook on CSC is stable for the next 12 months, reflecting our expectation that the company will control its capital expenditure to stabilize its high leverage ratio. We also anticipate the company will continue to manage its debt maturity profile and reduce borrowing costs over the next 12 months," said Mr. Lee. S&P could downgrade CSC if: (1) the company's sales execution deteriorates further from fiscal 2015; or (2) its debt-funded expansion is more aggressive than S&P expected. This could happen if its EBITDA interest coverage ratio is below 2x on a sustained basis, which in turn indicate that CSC's revenue is below HK$11.7 billion and its EBITDA margin is below 30% in fiscal 2016. The rating upside is limited for the next 12 months. However, S&P could consider upgrading CSC if the company materially improves its sales execution, controls its debt level, and maintains its profitability, such that its debt-to-EBITDA ratio is below 4x on a sustained basis. OCEANWIDE HOLDINGS: Fitch Affirms 'B' LT Issuer Default Rating -------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of China-based Oceanwide Holdings Co. Ltd.'s (Oceanwide) at 'B' with Stable Outlook. The property developer's senior unsecured rating and the rating on its outstanding USD320m senior notes issued by Oceanwide Real Estate International Holding Company Limited have also been affirmed at 'B' with Recovery Rating of 'RR4'. Oceanwide's rating has been affirmed as it remains on track to generate cash from the sale of development properties to fund its expansion into the financial sector. Fitch expects Oceanwide to meet its contracted sales target of CNY12bn in 2015 and start generating positive cash flow from operations (CFO) from 2016. The rating is constrained by the rapid increase in net debt to CNY35bn in 2014 from CNY22bn in 2013, which is likely to continue in 2015 as the company ramps up development expenditure to support sales growth. The Stable Outlook reflects Oceanwide's sufficient funds to support its business transition and growth. The company has access to multiple funding channels, such as offshore and onshore note issuance and equity placement. The company's parent China Oceanwide Holdings Group Co., Ltd, (China Oceanwide) is also able to provide financial support, if needed. KEY RATING DRIVERS Heavy Expenditure to Continue: Fitch expects Oceanwide's net debt to increase in 2015 and peak in 2016 as it builds up its investment property portfolio. Development expenditure is also likely to remain high due to increased construction costs for projects in Beijing that began selling from 2015, accelerated project launches in Beijing, and the 50% share of commercial property projects in Oceanwide's land bank, which are only sold when the properties are near to completion. The company's investments in its finance businesses will also add to its leverage. Asset Acquisitions: Oceanwide is diversifying its business model from pure property development to financial institutions in the long term. It spent over CNY5bn to acquire Minsheng Securities Co., Ltd, and China Minsheng Trust Co., Ltd from China Oceanwide, and invest in China Minsheng Investment Corp., Ltd. It also plans to acquire Minan Property & Casualty Insurance Co., Ltd for CNY1.8bn. Oceanwide has paid China Oceanwide for the non-insurance acquisitions. The parent has provided a keepwell deed to ensure that Oceanwide has sufficient liquidity. China Oceanwide has significant financial assets that allow it to provide liquidity support to Oceanwide if needed. Property Concentration Risk: The projects in Wuhan and Beijing have over 8 million and 2 million sqm of gross floor area (GFA) respectively. Together, they account for over 80% of Oceanwide's total land bank and estimated contracted sales in 2015-2017. In Wuhan, there is a risk that housing demand and development in the city may not keep pace with the substantial housing supply from Oceanwide's projects, which could lower sales efficiency and hurt its liquidity. The risk is mitigated by the Beijing projects, which will match Wuhan in sales value from 2015. The Beijing projects are located in the central business district and had low land costs. Strong Sales Momentum Maintained: Fitch expects the company's contracted sales to continue to increase strongly (2014: CNY9.8bn, up 67%) due to accelerated inventory launch in Wuhan and substantial sales from new premium projects in Beijing. Oceanwide's CFO may turn positive from 2016 because of robust sales, strong profitability and low land replenishment. We expect the company to maintain EBITDA margin of close to 40% (2014: 43%) despite some dilution from the high per sqm development cost of its Beijing projects. Ratios Used Reflect Transformation: Fitch measures Oceanwide's financial soundness based on its CFO and its inventory turnover (ratio of contracted sales to net inventory). Oceanwide's inventory turnover was 0.28x in 2014 but we expect this to exceed 0.5x from 2016 as sales from its large pool of properties under development increase while land replenishment remains minimal. The improved inventory turnover and likely generation of positive CFO will provide Oceanwide with funds to expand its financial businesses. No Rating Impact from Consent Solicitation: Oceanwide announced on 16 July 2015 it would seek consent from bondholders to amend the indenture on its USD320m notes, with the aim of giving the company more flexibility in its business transition. The transition has already been taken into account in Fitch's ratings and the consent solicitation, if implemented, will have no rating impact. Major proposed amendments include expanding the definition of permitted business to include finance, energy, internet, and technology; and raising the cap on permitted investment (excluding listed liquid assets) to 30% of total assets. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Limited new land acquisitions at 0.1x-0.4x of contracted sales GFA -- Contracted sales growth mainly driven by growth in average selling prices from CNY24,000/sqm to CNY34,000/sqm in 2015- 2018 -- Property development gross margin of 50%-53% in 2015-2018 (lower than in previous years due to higher construction cost) -- Lower dividend pay-out ratio than in previous years RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Failure to achieve positive operating cash flow in 2016 -- EBITDA margin sustained below 35% -- Contracted sales/net inventory sustained below 0.5x -- Substantial weakening of Minsheng Securities' credit profile Positive: Positive rating action is not expected in the next 12-18 months due to Oceanwide's high leverage. ========= I N D I A ========= ADROIT INFRATECH: CRISIL Assigns B+ Rating to INR56.6MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank facilities of Adroit Infratech Private Limited (AIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 56.6 CRISIL B+/Stable The ratings reflect AIPL's small scale of operations in intensely competitive commercial real-estate and hospitality industry and weak financial risk profile marked by high gearing and weak debt protection metrics. These rating weaknesses are partially offset by the high salability of its commercial space along with high occupancy level of the hotel owing to the location advantage, and funding support from the promoters. Outlook: Stable CRISIL believes that AIPL will benefit from its established market position due to the location advantage of its mall-cum-hotel. The outlook may be revised to 'Positive' in case the company sustains its occupancy level both in the mall and the hotel, resulting in better cash accruals along with improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if AIPL undertakes further debt-funded capital expenditure programme or its property attracts low occupancy levels, leading to deterioration in its financial risk profile. AIPL was incorporated in 2011 by Mr. Harish Sachdeva, a non- resident Indian based in Japan. It runs a commercial mall-cum- hotel measuring 1296 square metres at Dharamshala in Kangra (Himachal Pradesh). ANUPAM NIRMAN: ICRA Suspends 'B' Rating on INR8cr Cash Credit ------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR8 crore cash credit and INR6 crore term loan facilities and [ICRA]A4 rating to the INR36 crore, short term, non fund based bank guarantee facility of Anupam Nirman Pvt. Ltd. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. APS STEELS: CRISIL Reaffirms 'B' Rating on INR65MM Cash Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of APS Steels Limited (APS) continue to reflect its modest scale of operations in the fragmented mild steel (MS) ingots industry, the susceptibility of its operating margin to downturns in the end-user industry and volatility in steel prices, and its below-average financial risk profile marked by modest net worth, moderate capital structure, and weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B/Stable (Reaffirmed) Inland/Import Letter of Credit 50 CRISIL A4 (Reaffirmed) These rating weaknesses are partially offset by the extensive experience of APS's promoter group in the steel industry and the strong financial support it receives from its group concerns. Outlook: Stable CRISIL believes that APS will continue to benefit from the promoters' extensive industry experience and need-based financial support it receives from its group concerns over the medium term. The outlook may be revised to 'Positive' if the company is able to significantly increase its scale of operations, while maintaining its profitability. Conversely, the outlook may be revised to 'Negative' if there is deterioration in APS's financial risk profile, most likely on account of low profitability or a stretch in its working capital cycle, or any significant debt-funded capital expenditure or absence of timely support from group concerns. Incorporated in 2006, APS manufactures MS ingots through its manufacturing facility located at Hindupur, Andhra Pradesh. The company was acquired by the OP Gupta group in 2012. BL KASHYAP: CRISIL Reaffirms 'D' Rating on INR3.75BB Loan --------------------------------------------------------- CRISIL's ratings on the bank facilities of BL Kashyap and Sons Limited (BLK; part of the BLK group) continue to reflect instances of delay by the BLK group in servicing its debt; the delays were caused by the group's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3,750 CRISIL D (Reaffirmed) Cash Credit 2,480 CRISIL D (Reaffirmed) Cheque Discounting 20 CRISIL D (Reaffirmed) The BLK group also has large working capital requirements and is susceptible to cyclical demand in the real estate segment. However, the group benefits from its established market position in the construction sector. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of BLK and its subsidiaries: BLK Lifestyle Ltd, Security Information Systems (India) Ltd, BLK Infrastructure Ltd, and Soul Space Pvt Ltd (SSPL). This is because SSPL is BLK's real estate arm, and the other subsidiaries provide related services. All these companies are together referred to herein as the BLK group. BLK was established as BL Kashyap and Sons Pvt Ltd (BLKSPL) in 1989 by Mr. Vinod Kashyap, Mr. Vineet Kashyap, and Mr. Vikram Kashyap. BLKSPL was reconstituted as a public limited company with the current name in 1995. The promoters have been active in the real estate sector since 1978; they transferred their business to BLKSPL after it was formed. BLK provides construction services to customers operating in the commercial, residential, and industrial segments. The company has also ventured into real estate development and related services, such as furnishing. It has partly restructured its debt under a corporate debt structuring package which was approved on December 31, 2014. BLK reported a consolidated net loss of INR0.58 billion on net sales of INR8.34 billion for 2014-15 (refers to financial year, April 1 to March 31), vis-a-vis a net loss of INR0.85 billion on net sales of INR13.27 billion for 2013-14. CHHABRA ISPAT: Ind-Ra Hikes Long-Term Issuer Rating to 'IND BB+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Chhabra Ispat Pvt Ltd's (CIPL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable. Rating actions on CIPL's bank loans are as follows: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Fund-based working 180 Upgrade to 'IND BB+'/Stable capital limit from 'IND BB' Term loans 13.19 Upgrade to 'IND BB+'/Stable from 'IND BB' Non-fund-based 72 Affirmed at 'IND A4+' working capital limit KEY RATING DRIVERS The upgrade reflects an improvement in CIPL's interest coverage due to a rise in its operating EBITDA margins. According to the provisional financials for FY15, interest coverage improved to 2.0x from 1.6x in FY14 and operating EBITDA margins to 3.5% from 3.1%. Also, interest cost reduced to 13.15% of fund-based working capital limit in FY15 from 13.75% in FY14. The ratings are constrained by CIPL's moderate scale of operations with total revenue of INR1,522 million during FY15. RATING SENSITIVITIES Positive: A substantial improvement in the revenue and EBITDA interest coverage would lead to a positive rating action. Negative: Sustained deterioration in the EBITDA interest coverage ratio will be negative for the ratings. COMPANY PROFILE CIPL was incorporated in 2005. It manufactures MS billets at an installed capacity of 62,400mtpa in Burdwan district. These billets are used by rolling mills to manufacture TMT bars. The company's registered office is in Kolkata. It is managed by two directors Surendra Kumar Jain and Sourav Jain. During FY15, CIPL reported net revenue of INR1,522 million (FY14: INR1,587 million) with net leverage of 3.3x (3.0x). CORE GREEN: ICRA Ups Rating on INR206.6cr Term Loan to 'C' ---------------------------------------------------------- ICRA has upgraded the long term rating of Core Green Sugar & Fuels Private Limited to [ICRA]C from [ICRA]D for INR206.69 crore (reduced from INR224.21 crore) term loans, INR78.25 crore (earlier nil) working capital demand loans and INR117.11 crore (reduced from INR118.46 crore) cash credit facilities. ICRA has also upgraded the short term rating of CGSFPL to [ICRA]A4 from [ICRA]D for INR25.00 crore (enhanced from INR24.54 crore) non fund based facilities. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 206.69 [ICRA]C; upgraded from [ICRA]D Working Capital 78.25 [ICRA]C; upgraded from Demand Loan [ICRA]D Cash Credit 117.11 [ICRA]C; upgraded from [ICRA]D Non Fund Based 25.00 [ICRA]A4; upgraded from Limits [ICRA]D The revision of ratings factors in the correction in delays in debt servicing. Subdued domestic realizations coupled with relatively higher cane costs have resulted in continued losses for the company; consequently the company has undergone debt restructuring which was completed in January, 2015 and has resulted in reduced debt obligations. The ratings are constrained by the weak financial profile of the company as reflected by losses at net level, high gearing and debt coverage indicators in FY15. Further, given the domestic sugar surplus coupled with falling international prices, the pressure on domestic sugar realizations is likely to continue. This coupled with relatively higher cane cost of production is likely to impact the profitability from the sugar division in the near term. The company's operations will also be subject to risks that are associated with all sugar mills including agro-climatic risks, cyclicality associated with sugar business and vulnerability to government/regulatory actions associated with the business as evident in restriction in terms of sugarcane pricing, sugar exports, power sales and distillery products. ICRA has however taken note of fully integrated nature of operations of the company which coupled with healthy remuneration for cogeneration and distillery products, provides cushion to profitability to an extent in case of sugar downturn. The rating also factors in the limited off take risks associated with power in Karnataka and linking of the cane costs to actual sugar and by- product realizations which would support the profitability of the sugar mills in the long term. Going forward, the ability of the company to improve the liquidity position; and timely service the debt obligations are the key rating sensitivities. Core Green Sugar and Fuels Private Limited (CGSFL) has set up an integrated sugar plant at Yadgir District of Karnataka which was commissioned in April 2011. The plant has a 5000 TCD crushing unit, 24 MW cogen unit and a 50 KLPD distillery units. The company is promoted by Sreeramaneni family of Andhra Pradesh who hold the entire equity stake in the company. The key promoter Mr. S Vijay Kumar Babu has significant experience in farmer interfacing. Other directors of the company (sons of the key promoter) Mr. S Srinivas and Mr. S Rama Rao have significant entrepreneurial experience. In addition, the company has also roped in well experience management professionals with long experience in Sugar Industry. Recent Results According to the unaudited financials of FY15, CGSFPL has reported an operating income of INR287.39 crore and net loss of INR12.99 crore as against an operating income of INR288.02 crore and net loss of INR27.42 crore in FY14. DIEHARD DIES: CRISIL Suspends 'D' Rating on INR155.6MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Diehard Dies Private Limited (DDPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL D Letter of Credit 20 CRISIL D Long Term Loan 155.6 CRISIL D The suspension of ratings is on account of non-cooperation by DDPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DDPL is yet to provide adequate information to enable CRISIL to assess DDPL'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' DDPL is part of the Tulasi group of companies, which is headed by Mr. Tulasi Ramachandra Prabhu. The company manufactures flat- steel-rule-cutting-creasing-stripping dies, rotary-steel-cutting dies, and steel'line-label-cutting dies. EXCEL: CRISIL Reaffirms B+ Rating on INR22.8MM Bank Loan -------------------------------------------------------- CRISIL's ratings on the bank facilities of Excel continue to reflect Excel's below-average financial risk profile, marked by high gearing and below average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Reaffirmed) Foreign Bill Negotiation 100 CRISIL A4 (Reaffirmed) Letter of Credit 10 CRISIL A4 (Reaffirmed) Packing Credit 60 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 22.8 CRISIL B+/Stable (Reaffirmed) Term Loan 2.2 CRISIL B+/Stable (Reaffirmed) The ratings also factor in the firm's modest scale of operations in the intensely competitive ready-made garment export business and its large working capital requirements. These rating weaknesses are partially offset by the extensive industry experience of Excel's partners. Outlook: Stable CRISIL believes that Excel will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' if the firm increases its scale of operations and improves its working capital management, while maintaining its profitability levels, resulting in a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if Excel's accruals decline considerably, its working capital management weakens, it undertakes a large debt-funded capital expenditure programme, or its partners withdraw capital, leading to deterioration in the firm's financial risk profile, especially its liquidity. Set up as a partnership firm in 1989, Excel manufactures ready- made garments. Its day-to-day operations are managed by Mr. K Natarajan. Excel, provisionally, reported a profit after tax (PAT) of INR7.3 million on revenue of INR331.9 million for 2014-15 (refers to financial year, April 1 to March 31); it had reported a PAT of INR7.9 million on revenue of INR255.1 million for 2013-14. GALAXY MACHINERY: CRISIL Reaffirms B+ Rating on INR73MM Bank Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Galaxy Machinery Private Limited (GMPL) continue to reflect its below-average financial risk profile, marked by a small net worth, high gearing and moderate debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 (Reaffirmed) Cash Credit 70 CRISIL B+/Stable (Reaffirmed) Letter of Credit 30 CRISIL A4 (Reaffirmed) Long Term Loan 17 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 73 CRISIL B+/Stable (Reaffirmed) The ratings also factor in the susceptibility of GMPL's operating margin to risks related to volatility in raw material prices and intense competition in the computer numeric control (CNC) machine manufacturing segment. These rating weaknesses are mitigated by the promoters' extensive industry experience. Outlook: Stable CRISIL believes that GMPL's financial risk profile will remain constrained by its small net worth and working-capital-intensive operations, over the medium term. The outlook may be revised to 'Positive' if the company's liquidity increases with large infusion of long-term funds by the promoters or due to sustained improvement in its working capital cycle. Conversely, the outlook may be revised to 'Negative' if GMPL's financial risk profile particularly liquidity weakens due to unprecedented stretch in its working capital cycle or low cash accruals. GMPL, incorporated in 1991, manufactures CNC machines. The company is promoted by by Mr. S Elango. GANPATI FOODS: CRISIL Reaffirms B+ Rating on INR165MM Loan ---------------------------------------------------------- CRISIL's rating on the bank facilities of Ganpati Foods (GF) continues to reflect the company's weak financial risk profile, marked by high gearing and weak debt protection metrics. The rating also factors in the firm's working-capital-intensive operations and susceptibility to adverse changes in government policies. These rating weaknesses are partially offset by the partners' extensive industry experience and funding support. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 140 CRISIL B+/Stable (Reaffirmed) Warehouse Receipts 165 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that GF will continue to benefit over the medium term from the extensive industry experience of its partners in the basmati rice industry. The outlook may be revised to 'Positive' if capital infusion, efficient management of working capital requirements, or ramp-up in scale of operations strengthens the firm's key credit metrics. Conversely, the outlook may be revised to 'Negative' if GF's financial risk profile weakens due to large inventory and incremental bank borrowings, or a sizeable debt- funded capital expenditure (capex). Update GF's operating income increased by a mere 3 per cent over the previous year, to INR553 million in 2014-15 (refers to financial year, April 1 to March 31), owing to adverse market conditions and decrease in price of rice. The operating income is, however, expected to grow at around 10 per cent year on year over the medium term. The operating margin (8.4 per cent in 2014-15) was in line with past trends, and is expected to remain at similar levels over the medium term. The operations are working capital intensive, with gross current assets and inventory of 367 and 334 days, respectively, as on March 31, 2015. The bank limit utilisation, therefore, was high at an average of 90 per cent over the 12 months through June 2015. However, unsecured loans (INR118.8 million as on March 31, 2015) from the partners continue to support the liquidity. GF had capex of INR15 million in 2014-15 involving purchase of a sortex machine and maintenance; the capex was funded by a term loan of INR4.5 million and foreign letter of credit (FLC) of INR10.5 million. The FLC will be converted to a term loan in 2016- 17. GF's net cash accruals, expected at INR7 million may be just about adequate to service the maturing debt of INR6 million in 2015-16. The financial risk profile remains weak, with a high gearing (6.60 times) and weak debt protection metrics (with interest coverage and net cash accruals to total debt ratios of 1.3 and 0.02 times) for the year ended March 31, 2015. Owing to sizeable working capital borrowings and small net worth, the financial risk profile is expected to remain weak over the medium term as well. The firm reported a provisional book profit of INR6.7 million on net sales of INR552 million in 2014-15 against a book profit of INR25.1 million on net sales of INR537 million in 2013-14. GF was set up in 2008 as a partnership firm by Mr. Kewal Krishna Bansal and his family. The firm undertakes rice milling and shelling at its plant at Patran (Punjab). GOPAL MASTERBATCH: CRISIL Suspends B+ Rating on INR50MM Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of Gopal Masterbatch Private Limited (GMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 1.5 CRISIL B+/Stable Term Loan 48.5 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by GMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GMPL is yet to provide adequate information to enable CRISIL to assess GMPL'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' GMPL was incorporated in January 2013, promoted by Delhi-based Mrs. Monika Babbar and her cousin, Mr. Goldi Binod. The company has set up a manufacturing unit for computer cabinets in Neemrana, district Alwar (Rajasthan). GMPL is expected to start commercial production by the end of December 2013. HI-TECH ROBOTICS: Ind-Ra Hikes LT Issuer Rating to 'IND BB+' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Hi-Tech Robotics Systemz Limited's (HRL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-term loans 56.2 Upgraded to 'IND B+'/Stable from 'IND BB' Fund-based limits 100.0 Upgraded to 'IND BB+'/Stable from 'IND BB' and affirmed at 'IND A4+' Non-fund based limits 60.0 Upgraded to 'IND BB+'/Stable from 'IND BB' and affirmed at 'IND A4+' KEY RATING DRIVERS The upgrade reflects a considerable improvement in HRL's business profile as reflected in its improved scale of operations and operating margins. In FY14, the company's revenue grew 10.6% yoy to INR188m and EBITDA margins increased to 27.7% (FY13: 17.6%). The margins increased due to the company's improved ability to negotiate for minimum threshold margins on the projects undertaken and repeat orders from customers. The trend continued with the revenue growing 111.6% yoy to INR398m in FY15 based on the provisional financials on the back of the new customers added. However, the revenue base remains small. The upgrade also factors in an improvement in HRL's credit profile with net financial leverage (adjusted net debt/operating EBITDAR) and interest coverage (operating EBITDA/gross interest expense) improving to 3.0x and 5.2x in FY14 from 4.3x and 3.8x in FY13, respectively, on the improved EBITDA margins. Unaudited FY15 financials indicate a further improvement in HRL's credit profile on back of the increased revenue base and operating profit. The ratings continue to reflect HRL's significant technical expertise and product development experience in the field of robotics, artificial intelligence and industrial automation. HRL has developed several applications in these areas which can be used by the manufacturing sector, defence and para military forces. Liquidity is comfortable even as net cash conversion cycle elongated to 300 days in FY14 (FY13: 178 days) due to a higher year-end inventory. The average use fund-based limit was 73% for the 12 months ended June 2015. The ratings also factor in the company's limited operating track record of around 10 years. RATING SENSITIVITIES Positive: A positive rating action could result from significant growth in the operating revenue while improving/ maintaining the credit profile. Negative: A decline in the revenue or profitability or lengthening of the working capital cycle leading to a sustained increase in the net financial leverage will be negative for the ratings. COMPANY PROFILE HRL, established in 2004, develops products/solutions in robotics, artificial intelligence, automotive, embedded systems and computer vision and biometrics. It has designed and developed several unmanned robotics projects for the army, paramilitary forces and private sector companies. Some of the major areas in industrial automation include material handling application, robotic palletising and de-palletising, robotic welding, automation in foundry and forging, machine tending application, gantry and travel track based solution. INDESYS EQUIPMENTS: CARE Rates INR4.50cr Short Term Loan at 'D' --------------------------------------------------------------- CARE assigns 'CARE D' rating to the bank facilities of Indesys Equipments Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 4.10 CARE D Assigned Short term Bank Facilities 4.50 CARE D Assigned Rating Rationale The ratings assigned to the bank facilities of Indesys Equipments Private Limited (IEPL) factor in the stressed liquidity profile and the continuous and ongoing delays in debt servicing. IEPL was incorporated in February 2012 and is based out of Lonavla, Maharashtra. Before 2012, the company was known as Intel Design Systems India Private Limited (IDSPL). IEPL is engaged in the trading and manufacturing of CBRN (chemical, biological, radiological and nuclear) protection systems. The company undertakes designing, developing, manufacturing and supply of electronic, electrical, electro mechanical systems, automatic fire detection systems for various defence applications. The company caters to the needs of military and non-military technologies in the armored fighting vehicles, other special vehicle, on-board ships & airborne equipments for civil and other defence applications. IEPL is registered and approved supplier to DGQA (Directorate General of Quality Assurance), DRDO (Defence Research and Development Organization), Ordinance factories and other Ministry of Defence organizations. The raw material required for manufacturing includes connectors, relay, capacitors, printed circuit boards, which are sourced domestically and from Russia and UK. During the last 3 years, domestic purchases contributed about 90% to the total purchases. Customers of the company are DASS Hitachi Limited, Ordinance Factories, Defence Laboratories, Heavy Vehicles Factory, L&T Limited and others. The company had an outstanding order book of INR8.73 crore (0.82x FY15 [refers to the period April 1 to March 31] revenues), as on May 2015, which is to be executed till January 2016. In FY15 (Prov), IEPL earned PAT of INR0.14 crore on a total operating income of INR10.63 crore against PAT of INR0.07 crore on a total operating income of INR8.58 crore in FY14. IVORY CLOTHING: CRISIL Assigns B+ Rating to INR10MM Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Ivory Clothing Private Limited (IVPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 10 CRISIL B+/Stable Packing Credit 50 CRISIL A4 The ratings reflect IVPL's weak financial risk profile, marked by small net worth and high gearing. The rating also factors in the company's small scale of, and working-capital-intensive, operations in the highly fragmented textiles industry. These rating weaknesses are partially offset by the extensive experience of IVPL's promoter in the ready-made garments manufacturing segment and his funding support. Outlook: Stable CRISIL believes that IVPL's scale of operations will remain small, and its financial risk profile will remain constrained due to its small net worth and high gearing, over the medium term. The outlook may be revised to 'Positive' in case of improvement in the company's financial risk profile, mainly driven by fresh equity infusion by promoter, leading to increase in net worth. Conversely, the outlook may be revised to 'Negative' if IVPL's capital structure deteriorates due to stretch in working capital cycle, or its revenue and profitability come under pressure. Incorporated in 2005, IVPL manufactures ready-made garments, mainly for women. The company has 400 sewing machines and produces 40,000 garments per year at its manufacturing facility in Noida (Uttar Pradesh). JOMSONS ENTERPRISES: CRISIL Assigns B+ Rating to INR110MM Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Jomsons Enterprises (India) Private Limited (JE; part of the Jomsons group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL B+/Stable Long Term Loan 95 CRISIL B+/Stable The rating reflects the Jomsons group's below-average financial risk profile, marked by high gearing and a modest net worth. This rating weakness is partially offset by extensive experience of the Jomsons group's promoters in the polyvinyl chloride (PVC) industry and the group's established relationships with customers, primarily in Kerala. For arriving at its rating, CRISIL has combined the business and financial risk profiles of JE and Bestin Plast (BE). This is because both the entities, together referred to as the Jomsons group, are in the same line of business, have operational and financial linkages, and are managed by the same promoter. Outlook: Stable CRISIL believes that the Jomsons group will continue to benefit over the medium term from the industry experience of its promoters. The outlook may be revised to 'Positive' in case of a sustained increase in the group's profitability and scale of operations, or better working capital management, leading to improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' if 'Jomsons group's profitability is low or its working capital management weakens, leading to deterioration in its liquidity. The Jomsons group trades in PVC panel profiles and is venturing into customised printing in 3D texture on doors, ceilings, floors, and other surfaces. JE, formerly known as Jomsons Plastics, was established in 2011 and BE in 1993. Both are located in Thrissur (Kerala) and are managed by Mr. Bestin Joy. For 2013-14 (refers to financial year, April 1 to March 31), the Jomsons group reported net sales of INR222 million and a profit after tax (PAT) of INR0.31 million, as against net sales of INR429.9 million and a PAT of INR 0.74 million for the previous year. KAYEM FOOD: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Kayem Food Industries Private Limited (KFIPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The agency has also assigned KFIPL's INR2,142 million term loan a Long-Term 'IND BB+' rating with Stable Outlook. KEY RATING DRIVERS The ratings reflect KFIPL's small scale of operations and high net leverage due to large, debt-led capital expenditure for its unit in Rai, Haryana. Provisional financials for FY15 indicate revenue of INR391.51 million (FY14: INR282.14m) and net leverage (total adjusted net debt/operating EBITDAR) of 27.74x. However, Ind-Ra expects a sustainable improvement in KFIPL's net leverage by FYE17 on steady revenue growth and scheduled repayments of debt starting FY17. The ratings are supported by KFIPL's high profitability with EBITDA margins of 21.59% in FY15 (FY14: 16.54%). This, coupled with the capitalisation of interest expenses of term loans during the construction period, led to high interest coverage (operating EBITDA/gross interest expense) of 12.87x in FY15 (FY14: 3.06x). KFIPL's capex in Rai is for setting up a breakfast cereals manufacturing unit under three major product lines i.e. oats (oats milling at 30,000tpa), cereal bars (1,800tpa) and different varieties of flakes (corn flakes, single grain flakes, multi grain flakes, etc.). The total project cost is INR3,060m (debt/equity: 70:30); equity contribution has already been brought into the company. The project is running on schedule and is likely to be operational by November 2015. The company has a term loan sanction of INR2,142m, of which INR1,100m is in the form of capex letter of credit which will expire in FY18 and FY19. The entire amount of letter of credit is to be converted into term loans on the expiry, resulting in low interest expenses on the term debts till FY17. The interest burden is partially offset by the interest income on fixed deposits. The ratings are further supported by around four decades of experience of the promoters in the food processing industry and the company's established relationship with renowned customers such as Nestle India Limited, Marico Limited and ITC Ltd. RATING SENSITIVITIES Negative: Failure to achieve stable business operations at the new plant and/or any additional debt-lead capex leading to deterioration in the credit metrics will be negative for the ratings. Positive: A substantial growth in the top-line along with an improvement in the profitability leading to improved interest coverage will lead to a positive rating action. COMPANYPROFILE KFIPL was incorporated in 1986. It operates two food processing units in Haryana with a combined capacity of 4,800TPA. KFIPL manufactures dehydrated vegetables, cereal granules, ketchups, jams, etc. It is establishing another unit with a focus on breakfast cereals/energy bars manufacturing. The combined capacity of all the plants will be 47,100TPA. KFIPL markets its products through B2B sales, private labels and also under its own brand - Pan Foods. LEKH RAJ: CRISIL Reaffirms 'B' Rating on INR80MM Loan ----------------------------------------------------- CRISIL's rating on the long-term bank loan facilities of Lekh Raj Motors Pvt Ltd (LRM) continues to reflect LRM's weak financial risk profile, marked by a high total outside liabilities to tangible net worth ratio and average interest coverage ratio. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Electronic Dealer 80 CRISIL B/Stable (Reaffirmed) Financing Scheme (e-DFS) The rating also factors in the company's susceptibility to risks relating to intense competition in the automobile (auto) dealership market and limited bargaining power with its principal, General Motors India Pvt Ltd (General Motors). These rating weaknesses are mitigated by the benefits that LRM derives from its association with General Motors, and efficient working capital management. Outlook: Stable CRISIL believes that LRM will continue to benefit over the medium term from its association with General Motors and its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company generates substantial cash accruals and improves its capital structure, leading to an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if LRM reports low cash accruals, or undertakes any large debt-funded capital expenditure programme, thereby adversely impacting its financial risk profile. Update LRM registered a revenue of INR218 million for 2014-15 (refers to financial year, April 1 to March 31) in line with past trend in operating profitability of 3.5 per cent in 2014-15. LRM's revenue declined in 2014-15 on account of low demand of General Motors vehicles. However, with new launches expected by Chevrolet in 2015-16 its revenue is expected to grow at a moderate 12 to 15 per cent per annum over the medium term. The operating margin is expected to remain at 3 to 4 per cent over the medium term. LRM's operations remain moderately working capital intensive, with gross current assets of 55 days as on March 31, 2015 marked by inventory of 30 to 35 days. The company's liquidity is moderate, marked by bank limit utilisation of 37 per cent on an average over the 12 months through June 2015 and adequate cash accruals of INR3.5 million to INR4.5 million against nil term loan obligation over the medium term. CRISIL believes that LRM's liquidity will remain moderate over the medium term on account of adequate cash accruals and absence of any debt-funded capital expenditure plan. LRM's financial risk profile remains weak, marked by small net worth of INR9.0 million to INR10 million and a high total outside liabilities to tangible net worth ratio of 4.01 times as on March 31, 2015. The company however has a moderate interest coverage ratio of 1.95 times for 2014-15 and a risk coverage ratio of 12.73 times. CRISIL believes that LRM's financial risk profile will remain weak over the medium term. LRM was incorporated in 2011 by Mr. Krishan Miglani and Mr. Varun Miglani. The company is an authorised dealer for General Motors. It operates a showroom in Kaithal and an extention office in Jind (both in Haryana). MAINI GROUP: ICRA Assigns B+ Rating to INR7.50cr LT Loan -------------------------------------------------------- ICRA has assigned its long-term rating of [ICRA]B+ to the INR7.50 crore, bank facilities of Maini Group of Educational Society. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund-based bank facilities 7.50 [ICRA]B+; Assigned ICRA's rating takes into consideration the healthy response to the Cambridge International School (CIS) operated by MGES wherein the student strength, although at modest level, has almost tripled in AY 2015-16, since its start of operations in AY 2013-14. This, coupled with continued increase in fee may support profitability levels going forward. ICRA further notes CIS' surplus capacity (in the form of currently unused classrooms) which can accommodate additional student enrollments and already in-place infrastructure (for sports, library, laboratories etc) leading to limited capex requirement and thus limited additional funding requirements. ICRA's ratings are however constrained on account of MGES' modest financial profile as indicated in its elevated gearing levels, cash losses in the past and weak debt coverage indicators. Further, the ratings are constrained on account of its single asset operations which limits its geographic penetration and scale. Going forward, the ability of the society to attract students to optimally utilize its capacity, ability to improve financial profile with improving surplus margins, and the quantum of additional capex and its funding mix shall be the critical rating sensitivities. Established in 2011, MGES operates the Cambridge International School in Nawashahr, Punjab. The school commenced operations in April 2013 and has ~900 students in Academic Year 2015-16. The society is promoted by Mr Sukhdev Prasad Maini and Mr Rajan Maini who have other business interests, including filling stations and brick kilns. Recent Results MGES reported a net deficit of INR1.02 crore on revenue receipts of INR1.73 crore in FY 2013-14, as against a net surplus of INR8 thousand on revenue receipts of INR0.08 crore in the previous year. MIL INDUSTRIES: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed MIL Industries Limited's Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The agency has also taken the following rating actions on MIL's bank facilities: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Fund-based 22 Affirmed at 'IND BB+'/Stable working capital limits Non-fund-based 65 Affirmed at 'IND A4+' working capital limits KEY RATING DRIVERS The affirmation reflects MIL's small scale of operations and volatile profitability. Revenue which jumped to INR357m in FY14 due to a one-off export order normalised at INR303m in FY15. The fragmented nature of the industrial lining industry and the susceptibility of MIL's profitability to volatility in rubber prices remain concerns. Profitability over the last four years ranged between 11.9% and 18.5% due to volatile rubber prices. Credit profile remained comfortable with net leverage (total adjusted net debt/operating EBITDAR) remaining negative and EBITDA interest cover of 8.4x in FY15 (FY14: 9.5x). The ratings also factor in MIL's comfortable liquidity position with its average 81% use of the fund-based facilities for the 12 months ended June 2015. The ratings continue to reflect the five- decade-long experience of MIL's founders in rubber lining and polytetrafluoroethylene manufacturing. RATING SENSITIVITIES Positive: A substantial increase in the revenue and profitability while maintaining the credit profile will be positive for the ratings. Negative: Any substantial decline in the profitability leading to sustained deterioration in the credit profile will be negative for the ratings. COMPANY PROFILE MIL manufactures anti-corrosion and anti-abrasion lining and products, such as rubber and PTFE lining, and supplies them to the chemical and tyre manufacturing industry. NIKUNJ EXPORTS: CRISIL Assigns 'B' Rating on INR62.5MM LT Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Nikunj Exports (Nikunj). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 2.5 CRISIL B/Stable Cash Credit 60.0 CRISIL B/Stable Long Term Loan 62.5 CRISIL B/Stable The rating reflects Nikunj's moderate financial risk profile, marked by a weak capital structure, though supported by sound debt protection metrics, modest scale of operations in a highly competitive granite export business, and susceptibility of the firm's revenue to adverse government regulations and volatility in foreign exchange rates. These rating weaknesses are partially offset by the extensive experience of the firm's promoters in the granite industry. Outlook: Stable CRISIL believes that Nikunj will continue to benefit from the extensive experience of its promoters in the granite industry over the medium term. The outlook may be revised to 'Positive' if the firm increases its scale of operations and operating profitability on a sustained basis, thereby leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is deterioration in Nikunj's working capital management or if its revenue and operating profitability deteriorate or in case of large debt-funded capital expenditure, leading to weakening of its financial risk profile. Set up in 2015, Nikunj is a 100 per cent export-oriented unit involved in the processing and export of granite slabs. The firm commenced commercial operations in March 2015. It is promoted by Mr. Vasudev Poddar, who has been associated with the granite industry for more than 25 years. NSR STEELS: CRISIL Suspends 'D' Rating on INR110MM Bank Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of NSR Steels Private Limited (NSR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL D Letter of Credit 70 CRISIL D Proposed Long Term Bank Loan Facility 110 CRISIL D Term Loan 100 CRISIL D The suspension of ratings is on account of non-cooperation by NSR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NSR is yet to provide adequate information to enable CRISIL to assess NSR'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'. NSR Steels Private Limited (NSR Steels) was incorporated in 2008 to manufacture MS Ingots and thermo mechanically treated (TMT) bars. The company commenced its ingot manufacturing facility in Thirunelveli, Tamil Nadu in February 2010 with an installed capacity of 36,000 tonnes per annum (tpa). ORION LAMINATES: ICRA Suspends D Rating on INR10.10cr Term Loan --------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]D assigned to the INR10.10 crore bank facilities of Orion Laminates Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term, Term Loan 10.10 [ICRA]D Suspended Incorporated in 1993, as a public limited company OLL is engaged in the manufacturing of aluminium pressure die casting component. The company is also engaged in powder coating and machining of products. PAARTH INFRATECH: CRISIL Reaffirms B Rating on INR360MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facility of Paarth Infratech Private Limited (PIPL) continues to reflect PIPL's exposure to demand, implementation, and funding risks related to its ongoing project, and its weak financial risk profile. These rating weaknesses are partially offset by the benefits that the company derives from the M2K group's established regional market position, its promoter's experience in executing residential real estate projects through associate companies, and the financial support it receives from its promoter. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 360 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that PIPL will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the company receives substantial customer advances and implements its ongoing project as per schedule, leading to healthy cash accruals, and hence, to better business and financial risk profiles. Conversely, the outlook may be revised to 'Negative' in case of delays in receipt of customer advances, leading to pressure on PIPL's revenue and profitability, and hence, on its liquidity. Update PIPL is constructing a commercial-cum-office complex in Gurgaon (Haryana) and had spent close to 85 per cent of the total project cost of INR1.142 billion as on March 31, 2015. The project has been delayed by more than a year on account of the weak demand scenario in the real estate industry. The building and structure of the project is complete, while furnishing and other amenities are yet to be added. The company plans to handover possession to customers by March 2016. PIPL's promoter has funded the company's project through equity infusion of INR150 million and unsecured loans of INR280 million. Furthermore, PIPL's bank has disbursed total term debt of INR430 million. The company has sold around 38 per cent of the 2.65 million square feet area in the complex. About 38 per cent of the expected customer payments have come in (Rs.387 million as on March 31, 2015). The repayment of PIPL's term loans has started and the company has quarterly debt obligations of INR36 million. The interest and principal obligations are being funded through customer advances; hence, PIPL's liquidity remains adequate. PIPL is part of the M2K group promoted by Mr. Mahesh Kumar Bhagchandak. The company, formed in 2008, is developing a commercial complex in Gurgaon. RAGHUVANSHI INDUSTRIES: CRISIL Reaffirms B+ INR200M Loan Rating --------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Raghuvanshi Industries Private Limited (RIPL) continues to reflect RIPL's weak financial risk profile, marked by high gearing and weak debt protection metrics and vulnerability of its profitability and revenue to volatility in cotton prices and government policies. These rating weaknesses are partially offset by the extensive experience of RIPL's promoters in the cotton industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 200 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that RIPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company's financial risk profile improves marked by improved profitability or reduction in working capital requirements or equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if RIPL's liquidity weakens on account of low cash accruals or large debt funded capital expenditure programme or increase in working capital requirements. RIPL was set up as a partnership firm in 1998 by Mr. Dhirajlal V Shelani and his son, Mr. Dineshkumar D Shelani. It was reconstituted as a private limited company in January 2014. The firm, based in Rajkot (Gujarat) is engaged in ginning and pressing of cotton into bales, and in extraction of cotton seed. RIPL reported, on a provisional basis, book profit of INR12.3 million on net sales of INR1.89 billion in 2014-15, vis-a-vis book profit of INR3.2 million on net sales of INR2.3 billion for 2013- 14. ROYAL TYRES: CRISIL Suspends B Rating on INR65MM Term Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Royal Tyres Private Limited (RTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 Cash Credit 4 CRISIL B/Stable Letter of Credit 2 CRISIL A4 Packing Credit 8 CRISIL A4 Term Loan 65 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by RTPLwith CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RTPL is yet to provide adequate information to enable CRISIL to assess RTPL'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' RTPL was incorporated in 1991 in Chennai (Tamil Nadu). The company manufactures solid industrial tyres. The executive director, Mr. Sendil Kumaran, manages the company's day-to-day operations. SADAN REALTECH: CRISIL Reaffirms B Rating on INR202.8MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Sadan Realtech Private Limited (Sadan) continue to reflect Sadan's exposure to implementation and demand risks associated with its ongoing project, the geographical concentration in its revenue profile, and its vulnerability to the cyclicality and risks inherent in the Indian real estate industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 102.2 CRISIL A4 (Reaffirmed) Term Loan 202.8 CRISIL B/Stable (Reaffirmed) These rating weaknesses are partially offset by the benefits that the company derives from the M2K group's established regional market position and its promoter's experience in executing residential real estate projects through associate companies. Outlook: Stable CRISIL believes that Sadan will continue to benefit over the medium term from its group's established regional market position and its promoter's experience in executing residential real estate projects. The outlook may be revised to 'Positive' if the company's business and financial risk profiles improve significantly, backed by timely construction and sale of its ongoing project and substantial demand, leading to healthy cash accruals. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in project implementation or delays in receipt of customer advances, or significant investment in unrelated projects, leading to pressure on Sadan's revenue and profitability, and hence, on its liquidity. Update Sadan is constructing a residential group-housing project at Dhanwapur near Dwarka Expressway in Gurgaon (Haryana). About 30 per cent of the total cost of INR4 billion was incurred till March 31, 2015. The project was put on hold on account of delay in approval for the Dwarka Gurgaon Expressway, which led to subdued demand and price scenario in the region. Approval for the expressway was granted in May 2015 and Sadan plans to launch its project by October 2015. Sadan's promoter has funded its project through equity infusion of INR104 million and unsecured loans of INR790 million. Although the bank has sanctioned term loan of INR1250 million, only INR300 million has been disbursed so far. The management intends to hand over possession of flats by 2018-19 (refers to financial year, April 1 to March 31). Due to delay in commencement of the project, the bank has rescheduled repayment of the term loan to March 2017; Sadan is funding the ongoing interest payments through unsecured loans. Sadan, incorporated in 2010, is constructing a residential group- housing project, Beau Monde, in Gurgaon. The company is a part of the M2K group of New Delhi and is promoted by Mr. Mahesh Kumar Bhagchandka. SAHARA GROUP: Sebi Cancels Mutual Funds' Registration ----------------------------------------------------- The Times of India reports that in a fresh crackdown on the Sahara group, market regulator Sebi on July 28 cancelled the registration of Sahara Mutual Fund saying it was no longer 'fit and proper' to carry out this business and ordered transfer of its operations to another fund house. TOI relates that the Sahara group has been engaged in a legal battle with Sebi ever since the regulator ordered refund of over INR24,000 crore by two Sahara entities. The report says Sebi also cancelled the portfolio management licence of a Sahara firm recently. In the latest order, Sebi directed cancellation of Sahara Mutual Fund's certificate of registration on expiry of a six month period from July 28. Sebi also directed Sahara Mutual Fund and Sahara Asset Management Company to stop accepting subscription from its existing or new investors with immediate effect, according to the report. Besides, Sahara MF has been asked to "make efforts to transfer the activities of Sahara India Financial Corporation Limited (Sahara Sponsor) and Sahara Asset Management Company Private Limited (Sahara AMC) to a new Sponsor and a Sebi approved Asset Management Company at the earliest," the report relays. According to the report, Sahara MF's board of trustees has been asked to "oversee and ensure protection of the unit-holders' interests during the above period". The board of trustees would need to be re-constituted after the transfer, Sebi said. If Sahara MF fails to complete the process of transition within five months, it would have to compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of 30 days and wind up the operations of the mutual fund, TOI relays. TOI relates that in his 22-page order, Sebi's whole-time member Prashant Saran said: "Having held Sahara India Financial Corporation Limited (Sahara Sponsor) and Sahara Asset Management Company Private Limited (Sahara AMC) are not 'fit and proper persons', I find that they have failed to fulfil the eligibility criteria to remain as the Sponsor and Asset Management Company respectively." Sahara AMC has assets under management of IN134 crore and is the second smallest among the 44 fund houses in India, the report discloses. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 15, 2013, The Economic Times said the Securities & Exchange Board of India (Sebi) on Feb. 13, 2013, seized bank accounts and properties of two Sahara Group companies and its promoter, Subrata Roy. The move comes following the group's failure to refund INR24,000 crore to investors as directed by the Supreme Court. Sahara Group operates businesses ranging from finance, housing, manufacturing and the media. Sahara also sponsors the Indian hockey team and owns a stake in Formula One racing team, Force India. SAIL BANSAL: CRISIL Suspends B- Rating on INR60MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Sail Bansal Service Centre Limited (SBSCL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B-/Stable The suspension of rating is on account of non-cooperation by SBSCL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SBSCL is yet to provide adequate information to enable CRISIL to assess SBSCL'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' SBSCL commenced operations in 2000-01 (refers to financial year, April 1 to March 31) as a steel service centre (SSC) for SAIL. SBSCL was formed with the objective of customising steel products for SAIL. The company is also engaged in trading of steel structurals. SBSCL is a joint venture between SAIL and BMW Industries Ltd with BMWIL owning majority (60 per cent) stake in the Joint Venture. SAMRAJ CONSTRUCTIONS: ICRA Assigns 'B' Rating to INR13cr LT Loan ---------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B to the INR13.0 crore fund based facilities of M/s Samraj Constructions. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Facilities 13.0 [ICRA]B assigned The rating assigned considers the moderate scale of operations of the Firm; the geographical and sectoral concentration of the firm's projects with operations currently limited to building projects in and around Coimbatore; the high competition in the building construction segment and the stretched financial profile of the firm characterised by thin margins and a highly geared capital structure and poor coverage indicators. The rating also takes into account the working capital intensive nature of operations and the risk of delays in projects/receipt of payments, particularly from the high value education sector projects. The ratings, however positively factor in the established track record and the extensive experience of the partners and the group in the industry spanning over three decades; the comfortable order book position of ~Rs 60 Cr as on February 2015; and limited raw material price risks faced by the firm owing to high value materials such as steel and cement being provided by clients and access to other raw materials like RMC, sand and aggregates from group companies. Samraj Constructions is a partnership entity which is engaged in undertaking construction of educational institutions, residential apartments, commercial buildings and other building construction activities. The firm was set up in 1998 as a partnership concern and has undertaken several high value contracts such as the construction of K. S. R College, construction for Aarthi Educational and Charitable trust etc. The partners of the firm have been operating in the construction space for over three decades through a group entity, M/s Samraj & Co. The group has completed buildings with a built up area of over 6 Million Sq. ft. Till date. The firm recorded a Profit after tax of INR0.53 Cr on a revenue of ~INR45 Cr in FY 2013-14. SARAWAGI AUTOMOBILES: ICRA Revises Rating on INR8.25cr Loan to B ---------------------------------------------------------------- ICRA has revised its long term rating on the INR8.25 crore fund based limits and INR0.13 crore unallocated limits of Sarawagi Automobiles Private Limited to [ICRA]B from [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Facilities 8.25 [ICRA]B; revised (LT Scale) from [ICRA]B+ Unallocated (LT Scale) 0.13 [ICRA]B; revised from [ICRA]B+ The rating revision takes into account the weak demand sentiments which have resulted in continued pressure on the company's operating income, which registered a year-on-year decline of 25% in FY15, on the back of a 17% decline in the previous year. ICRA's ratings revision also factor in the increased reliance on borrowings for funding of working capital requirements and the company's thin margins which have resulted in weak coverage indicators with interest coverage at 1.36x, NCA/TD at 1% and DSCR at 1.16x for FY15 as compared to 1.82x, 6% and 1.52x respectively for the previous year. ICRA also takes note of the firm's leveraged capital structure with gearing of 3.99 times as on March 31, 2015. The ratings however derive comfort from SAPL's association with Tata Motors Limited (TML),the market leader in the commercial vehicle segment and the established track record of the promoters in the automobile industry. Going forward, the company's ability to increase its scale of operations and register a sustained improvement in its profitability, while optimally managing its working capital cycle will be the key rating sensitivities. SAPL was incorporated in May 2009 and is an authorized dealer of TML. SAPL is engaged in the sale of vehicles, spares and also provides after sales support. Presently, the company has 3S (Sales, Service and Spares) facilities at Sri Ganganagar and Hanumangarh districts and 1S (Sales) facilities at Suratgarh, Raisinghnagar, Anoopgarh, Nohar and Bhadra, in Rajasthan. Recent Results The company, on a provisional basis, reported an operating income of INR39.62 crore and a net profit of INR0.02 crore in FY15, as against an operating income of INR52.82 crore and a net profit of INR0.22 crore in the previous year. SAS AUTOCOM: CRISIL Suspends 'D' Rating on INR118.5MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of SAS Autocom Engineers India Private Limited (SASAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL D Bill Discounting 20 CRISIL D Cash Credit 118.5 CRISIL D Letter of Credit 100 CRISIL D Long Term Loan 61.5 CRISIL D The suspension of ratings is on account of non-cooperation by SASAPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SASAPL is yet to provide adequate information to enable CRISIL to assess SASAPL'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' Established in 1986, SASAPL manufactures pipes and pipe-related products for the automobile, farm and construction equipment industries. The company has manufacturing units in Tamil Nadu. Some of SASAPL's reputed customers include Ashok Leyland Ltd, Tractors and Farm Equipment Ltd (CRISIL AA+/Stable/CRISIL A1+), Same Deutz Fahr India Pvt Ltd and Volvo India Pvt Ltd. The promoter, Mr. Sankaran Nambiar and his son, Mr. Shyam Raj, manage the company's daily operations. SHIEL AUTOS: CRISIL Reaffirms B+ Rating on INR75MM Cash Credit -------------------------------------------------------------- CRISIL ratings on the bank facilities of Shiel Autos continue to reflect Shiel's limited bargaining power with its principal, Bajaj Auto Ltd (BAL; rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+'), resulting in low operating profitability. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 19.5 CRISIL A4 (Reaffirmed) Cash Credit 75.0 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 5.5 CRISIL B+/Stable (Reaffirmed) Overdraft Facility 45.0 CRISIL A4 (Reaffirmed) Long Term Loan 30.0 CRISIL B+/Stable (Reaffirmed) Inventory Funding Facility 5.0 CRISIL B+/Stable(Reaffirmed) The ratings also factor in the firm's below-average financial risk profile, marked by a small net worth, high TOLTNW ratio, and weak debt-protection metrics. These rating weaknesses are partially offset by the extensive experience of Shiel's promoters in the automobile dealership business and its long association with the reputed Bajaj brand. Earlier, CRISIL had downgraded the rating on the bank facilities of Shiel Autos to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB- /Stable/CRISIL A4+' in public domain dated July, 7, 2015. Outlook: Stable CRISIL believes that Shiel will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm's financial risk profile improves, most likely through equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if Shiel's financial risk profile deteriorates, most likely because of a significant decline in its sales volumes and net cash accruals. Based in Agra (Uttar Pradesh), Shiel has been a dealer for BAL's two-wheelers for 25 years. The firm has seven showrooms, all in and around Agra. Its day-to-day operations are managed by Mr. Rajiv Rattan and his brother Mr. Sanjeev Rattan. SIDDHIVINAYAK POULTRY: CRISIL Reaffirms B Rating on INR80MM Loan ---------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Siddhivinayak Poultry Breeding Farm & Hatcheries Pvt Ltd (SVPL) continues to reflect SVPL's below-average financial risk profile, marked by a small net worth, and the vulnerability of its operating profitability to risks inherent in the poultry industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 24.6 CRISIL B/Stable (Reaffirmed) Term Loan 80.0 CRISIL B/Stable (Reaffirmed) These rating weaknesses are partially offset by the extensive industry experience the company's promoters through group entities. For arriving at the rating, CRISIL has treated unsecured loans of INR25 million as on March 31, 2015, extended to SVPL by its promoters and affiliates, as neither debt nor equity. This is because these loans are interest-free and are expected to be retained in the business over the medium term. Outlook: Stable CRISIL believes that SVPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of a substantial increase in the company's scale of operations, resulting in higher cash accruals and hence in an improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' in case of deterioration in SVPL's liquidity due to low cash accruals, a stretch in its working capital cycle, or large debt-funded capital expenditure. SVPL was established in Pune (Maharashtra) in 2010 by Mr. Ajay Deshpande, Mr. Laxman Bhosale, and Mr. Vijendra Bhosale. The company undertakes broiler poultry farming; it sells broiler eggs, day-old chicks, and broiler birds. SILVER GLOBAL: CRISIL Suspends 'D' Rating on INR71MM Term Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Silver Global Services Private Limited (SGSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL D Term Loan 71 CRISIL D The suspension of rating is on account of non-cooperation by SGSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SGSPL is yet to provide adequate information to enable CRISIL to assess SGSPL'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' SGSPL was set up in 1998 as a proprietorship firm called Silver Enterprises by Mr. Alphonso D'Souza and was reconstituted as a private limited company in 2007 by Mr. D'Souza, his wife Mrs. Stella D'Souza, his son Mr. Kevin D'Souza and his son-in-law Mr. Rolan D'Costa. SGSPL is engaged in the handling, cleaning, testing and maintenance of liquid carrying tank containers. SINGHVI FASHIONS: ICRA Ups Rating on INR19.63cr Term Loan to B+ --------------------------------------------------------------- ICRA has upgraded the long term rating to [ICRA]B+ from [ICRA]B to the INR23.88 crore fund based bank limits of Singhvi Fashions Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Limits 4.25 [ICRA]B+ upgraded from [ICRA]B Term Loan 19.63 [ICRA]B+ upgraded from [ICRA]B The rating revision takes into account the stabilisation achieved in its first full year of operations along with moderate profitability levels .despite high depreciation and interest charges. The rating however, favourably factors in the healthy demand indicators for the product, locational advantages resulting from proximity to customers and raw material sources and benefits accruing from subsidies under Technology Up-Gradation Fund Scheme (TUFS). The rating however remain constrained by SFPL moderate scale of operations as well as its exposure to volatility in key raw material prices and to intense competitive pressures on account of fragmented industry structure. The rating is further constrained by the debt funded capex undertaken by the company, hence the ability of the company to maintain healthy return indicators and ensure timely debt servicing, remains crucial from rating perspective. Incorporated in 2013 Singhvi fashions Private Limited is promoted by Mr.Haresh Rudakiya, Mr.Nitesh Makrubiya, Mr. Prashant Hadiya and Mr. Sunil Patel .The company has started a new project of processing grey fabrics by installing 36 rapier looms with an installed capacity of processing 53 lakh meters of fabric per annum.SFPL's manufacturing facility is located in Surat, Gujarat. Recent Results For the year FY 2015 unaudited provisional's, the company reported an operating income of INR18.44 Cr. and profit after tax of INR0.62 Cr. SITA MAA: CARE Assigns B+ Rating to INR15cr Long Term Loan ---------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Sita Maa Ricemill. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 15 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Sita Maa Rice Mill (SMRM) is constrained by partnership nature of constitution, small scale of operation in a fragmented and competitive industry, volatility in profit margins subject to government regulations, high working capital intensity of operations, resulting in leveraged capital structure and being an agri based commodity, the prospects are subject to vagaries of nature. The aforesaid constraints are partially offset by the experience of the partner and proximity to rawmaterial sources. The ability to grow its scale of operations and improve its profitability margins and efficient management of working capital are the key rating sensitivities. Sita Maa Rice Mill (SMRM) was established as a partnership firm in March, 2013 by Mr Purna Chandra Maity, Mr Samiran Maity, Mr Sanjay Kumar Maity and Mrs Sitarani Maity, based out of Midnapore, West Bengal, as an equal partner with profit sharing ratio of 25%. The firm is engaged in the processing and milling of rice. The milling unit of the firm is located at Midnapore district, West Bengal with processing capacity of 28,800 Metric Tonne Per Annum (MTPA). SMRM procures paddy from farmers & local agents and sells its products through the wholesalers and distributors across West Bengal, Jharkhand, Bihar and Odisha. As per the audited results of FY15 (refers to the period April 01 to March 31), SMRM reported a PBILDT of INR1.01 crore and PAT of INR0.01 crore, on a total operating income of INR8.88 crore. SOLAN SPINNING: CRISIL Reaffirms B+ Rating on INR75MM Term Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Solan Spinning Mills Private Limited (SSMPL) continues to reflect SSMPL's modest scale of operations, susceptibility of its operating margin to volatility in raw material prices, and its working-capital- intensive operations. These rating weaknesses are partially offset by the extensive experience of SSMPL's promoters in the cotton spinning industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 56 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 19 CRISIL B+/Stable (Reaffirmed) Term Loan 75 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SSMPL will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationships with customers and suppliers. The outlook may be revised to 'Positive' if the company significantly scales up its operations while maintaining its profitability, thereby improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if SSMPL's working capital cycle is stretched, leading to weakening of its financial risk profile, especially its liquidity. SSMPL, established in 2003, manufactures cotton yarn. The company is promoted and currently managed by Mr. Arvind Kumar Arora, Mr. Sanjay Panwar, Mr. Sansar Singh Sirohi, Mr. Shitanshu Sirohi, and Mr. Shrey Garg, along with three other friends. Its manufacturing unit is at Baddi in Solan (Himachal Pradesh). SSMPL is estimated to report profit after tax (PAT) of INR16 million on net sales of INR345 million for 2014-15 (refers to financial year, April 1 to March 31), against a PAT of INR32 million on net sales of INR333 million for 2013-14. SRI KRISHNA: CRISIL Suspends B+ Rating on INR60MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Sri Krishna Sai Rice Industries (SKSRI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 56 CRISIL B+/Stable Term Loan 4 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by SKSRI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SKSRI is yet to provide adequate information to enable CRISIL to assess SKSRI'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' SKSRI was established as partnership firm in 2002 by Mr. Raghavaiah along with his family members. The firm is engaged in the business of rice milling. SKSRI has its manufacturing facilities in Nellore, Andhra Pradesh. The day to day operations of the concern are managed by Mr. Raghavaiah. SRI SEETHALAKSHMI: CRISIL Suspends B+ Rating on INR37MM LT Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Seethalakshmi Steel Castings Private Limited (SSCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B+/Stable Letter of Credit 5 CRISIL A4 Long Term Loan 37 CRISIL B+/Stable Proposed Cash Credit Limit 1 CRISIL B+/Stable SME Credit 2 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SSCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSCPL is yet to provide adequate information to enable CRISIL to assess SSCPL'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 1995 and based in Coimbatore (Tamil Nadu), SSCPL manufactures a wide range of ductile iron and grey iron casting products. The company is managed by its promoter Mr. Ramasamy. SWASTIK MARKETING: ICRA Reaffirms B+ Rating on INR2.50cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to the INR2.50 crore cash credit facility of Swastik Marketing. ICRA has also reaffirmed the short-term rating of [ICRA]A4 assigned to the INR2.50 crore short-term non-fund based limit of SM. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 2.50 [ICRA]B+ reaffirmed Bank Guarantee 2.50 [ICRA]A4 reaffirmed The reaffirmation of the ratings continues to take into account SM's low profitability indicators on account of the limited value addition in the business, modest scale of operations, and the tight liquidity position of the firm as reflected by almost full utilization of working capital bank limits in the past. The ratings are further constrained by the competitive pressures from other established mobile phone brands, online sales platforms, and cloth traders. ICRA also notes that being a proprietorship firm, any substantial capital withdrawals from the proprietor's capital account would have a negative bearing on the gearing levels of the firm; the quantum of withdrawals thus remains a key rating sensitivity. The ratings, however, favourably take into account the long track record of the promoters in the distribution business, and the favourable demand prospects for mobile phones, particularly the smart phone segment, in India. Incorporated in 1988, Swastik Marketing (SM) is a proprietorship firm engaged in trading of cloth and distribution of cellphones. SM is a distributor of, Karbonn mobile phones, Byond mobile phones, Apple mobile phones, Samsung mobile phone and LG mobile phones for Ahmedabad and Gandhinagar district in Gujarat. The firm is promoted by Mr. Sandeep Jain. Recent Results As per the provisional results, the firm reported an operating income of INR38.44 crore and profit after tax of INR0.43 crore in FY15 as against an operating income of INR40.21 crore and profit after tax of INR0.40 crore during FY14. SWASTIK TUNGSTEN: CARE Reaffirms B+ Rating on INR11.60cr LT Loan ---------------------------------------------------------------- CARE revokes suspension and reaffirms the ratings assigned to the bank facilities of Swastik Tungsten Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 11.60 CARE B+ Suspension revoked and rating reaffirmed Short-term Bank Facilities 2.00 CARE A4 Suspension revoked and rating reaffirmed Rating Rationale The ratings assigned to the bank facilities of Swastik Tungsten Private Limited (STPL) continue to be constrained by the small scale of operations with high customer concentration, low capitalization, working capital intensive nature of operations, leveraged capital structure and weak debt coverage indicators. The ratings are further constrained by project execution risk and inherent industry risk characterized by susceptibility of profitability margins to fluctuation in raw material and forex prices along with operations in a highly fragmented and competitive industry. The aforesaid constraints continue to be partially offset by the strength derived from the experience of the promoters. Going forward, ability of the company to improve its overall scale of operations amidst intense competition along with efficient management of the working capital cycle are the key rating sensitivities. Swastik Tungsten Private Limited (STPL; erstwhile Swastik Chemicals a partnership firm reconstituted as a private limited company in 2010) is engaged in the manufacturing of inorganic chemicals like tungsten trioxide and tungsten metal powder which are supplied to manufacturers of bombshells (defence establishments) and carbide, under the brand 'Swastik'. STPL has its administrative office located in Mumbai and manufacturing unit at Ahmednagar, Maharashtra with an installed capacity of 360MTPA (around 40% average utilization for FY15 refers to the period April 1 to March 31). The company imports tungsten ore from the UAE (constituted 70% of purchases in FY15) while the rest of the raw material is sourced from domestic suppliers. STPL's revenue is predominantly generated from defence establishments like M/s. Heavy Alloy Penetrator Project (constituted 90% of revenue in FY15), players in the carbide industry based in India(constituted 7% of total revenue in FY15) and the remaining through exports to countries namely USA, Iran & Poland (constituted around 3% of total revenue in FY15). During FY15 (provisional), STPL reported total operating income of INR16.39 crore (vis-a-vis INR14.86 crore in FY14) and PAT of INR0.13 crore (vis-a-vis INR0.22 crore in FY14). TOLAR OCEAN: CRISIL Reaffirms B+ Rating on INR40MM LT Loan ---------------------------------------------------------- CRISIL's ratings on the bank facilities of Tolar Ocean Products Pvt Ltd (TOPL) continue to reflect the company's below-average financial risk profile, marked small net worth and aggressive capital structure. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Export Packing Credit 15 CRISIL B+/Stable (Reaffirmed) Long Term Loan 40 CRISIL B+/Stable (Reaffirmed) Packing Credit 125 CRISIL A4 (Reaffirmed) The ratings also factor in the susceptibility of TOPL's revenue to volatility in raw material prices and foreign exchange rates, and to risks inherent in the seafood export industry. These rating weaknesses are partially offset by the company's established position in the seafood export industry and its established relationships with its suppliers and customers. Outlook: Stable CRISIL believes that TOPL will continue to benefit from the extensive industry experience of its promoter over the medium term. The outlook may be revised to 'Positive' if the company scales up its operations, resulting in a significant increase in its revenue and profitability and, consequently, its cash accruals. Conversely, the outlook may be revised to 'Negative' if TOPL undertakes a large debt-funded capital expenditure programme or if its liquidity weakens, most likely because of a sharp decline in its profitability or increase in working capital requirements. Incorporated in 1996, Udupi (Karnataka)-based TOPL processes and exports fish. The day-to-day operations are managed by its promoter, Mr. Prakash Tolar. US GRANITES: ICRA Reaffirms 'B' Rating on INR5.0cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B to the INR5.00 crore (revised from INR6.05 crore) long term fund based limits and INR2.83 crore (revised from INR2.78 crore) unallocated limits of US Granites. ICRA has also re-affirmed short-term rating of [ICRA] A4 for INR1.00 crore (revised from INR0.00) fund based limits (short term) and INR0.82 crore non fund based limits of USG. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- Long Term 5.00 [ICRA]B re-affirmed Fund Based Limits- Short Term 1.00 [ICRA]A4 re-affirmed Unallocated 2.83 [ICRA]B re-affirmed Non Fund based limits 0.82 [ICRA]A4 re-affirmed The reaffirmation of ratings considers USG's modest scale of operations, the risk of high geographical concentration with majority of sales being derived from the US market exposing the firm to issues of demand stability and high customer concentration with the top three clients adding to about 70% of total sales. The company witnessed 2.36% de growth in FY14 and ~17% year-on-year de growth in 9m, FY15 on account of subdued demand from the US market. The ratings are also constrained by the lack of captive quarries, erosion in net worth on account of drawings of capital by partners and inherent industry related risks including intense competition, high working capital intensity and exposure to volatile foreign exchange rates; however, hedging through foreign currency denominated working capital facilities mitigates the risk to an extent. The ratings however derive comfort from the promoter's decade long experience in the granite industry, long standing relationship with customers and an improvement in the gearing as compared to previous years. Going further, USG's ability to diversify its geographic base and increase the scale of operations while maintaining profitability will be critical in improving the credit profile. US Granites was established in 2002 as a partnership firm. The firm is engaged in the processing and export of granite slabs. In the year 2002 the firm acquired the sick granite processing unit namely Ravi Rocks situated at Bolaram in the Medak district of Telangana which was renamed as US Granites. The total processing capacity of the unit is 96000 sqm per annum or 10.32 lakh sft per annum. Recent Results According to provisional financials, the company reported profit after tax of INR0.12 crore on an operating income of INR10.52 crore for the period 9M FY2015. The company reported profit after tax of INR0.17 crore on an operating income of INR16.95 crore during FY2014 as against profit after tax of INR0.16 crore on an operating income of INR17.36 crore during FY2013. VINSURA WINERY: CRISIL Suspends 'D' Rating on INR38MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Vinsura Winery Private Limited (VWPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 38 CRISIL D Term Loan 27 CRISIL D The suspension of rating is on account of non-cooperation by VWPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VWPL is yet to provide adequate information to enable CRISIL to assess VWPL'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' VWPL manufactures wine, which it markets under the brand name Vinsura. The company, incorporated in 2001, is promoted by Mr. Kishor Changdeorao Holkar and Mr. Nitin Desai. It has its manufacturing facilities at Nashik (Maharashtra), near the grape- growing region; grapes are the major raw material for making wine. ========= J A P A N ========= TOSHIBA CORP: To Cut Interim CEO Pay by 90% on Accounting Scandal ----------------------------------------------------------------- Reuters reports that Toshiba Corp said it would slash its interim chief executive's monthly salary for the next two months by 90 percent, including previously announced cuts, following revelations of improper accounting at the Japanese conglomerate. Reuters relates that the company said on July 29 it would reduce Masashi Muromachi's monthly salary by 50 percent on top of the 40 percent cut already in place. It said it would also dock the pay of other senior executives, and that an extraordinary shareholders' meeting in September would consider any additional measures, Reuters relays. Toshiba also said it would hire more independent directors, including lawyers and accountants, adds Reuters. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on June 25, 2014, Moody's Japan K.K. assigned a rating of Ba1 to the JPY180 billion in subordinated loans issued by Toshiba Corporation. At the same time, Moody's has affirmed all of Toshiba's ratings. Senior Unsecured Baa2 Senior Unsecured Shelf (P)Baa2 Subordinate Ba1 Commercial Paper P-2 The ratings outlook is stable. TOSHIBA CORP: Appoints Committee to Prevent Further Scandals ------------------------------------------------------------ Pavel Alpeyev and Takashi Amano at Bloomberg News reports that Toshiba Corp., emerging from an accounting scandal that may cost at least $1.2 billion in writedowns, appointed a six-member revitalization committee charged with preventing improprieties in the future. Hiroyuki Itami, who currently serves as an outside board member at the company, will lead the group, Toshiba said in a statement on July 29, Bloomberg relates. He will be joined by outside directors Ken Shimauchi, Kiyomi Saito and Sakutaro Tanino. An accountant and a lawyer will also join the group. According to the report, Toshiba has lost about $4 billion in market capitalization since May 8, when it withdrew forecasts and canceled the year-end dividend before later widening an accounting probe into construction projects to cover the entire company. President Hisao Tanaka, Vice Chairman Norio Sasaki and adviser Atsutoshi Nishida stepped down this month to take responsibility for Japan's biggest accounting scandal since 2011, the report says. Sasaki and Nishida were former presidents. No charges have been filed against Toshiba or executives, Bloomberg notes. According to the report, the Tokyo-based company also said Mitsubishi Chemical Holdings Corp. Chairman Yoshimitsu Kobayashi and former Supreme Court Justice Yuki Furuta will act as observers. Bloomberg relates that the company also said eight executives will have their pay lowered by 40 percent for the three months from July while interim President Masashi Muromachi will take a 90 percent cut from August. Toshiba is considering selling shares and properties to rebuild a balance sheet and reputation rocked by the accounting probe that revealed it inflated earnings by at least JPY156 billion ($1.26 billion) since the 2008 financial year, the report adds. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on June 25, 2014, Moody's Japan K.K. assigned a rating of Ba1 to the JPY180 billion in subordinated loans issued by Toshiba Corporation. At the same time, Moody's has affirmed all of Toshiba's ratings. Senior Unsecured Baa2 Senior Unsecured Shelf (P)Baa2 Subordinate Ba1 Commercial Paper P-2 The ratings outlook is stable. ==================== N E W Z E A L A N D ==================== DESTINY SCHOOL: 'Technically Insolvent' After NZ$240K Loss ---------------------------------------------------------- Libby Wilson at Stuff.co.nz reports that Destiny School has been warned it is 'technically insolvent' after it made a NZ$240,000 loss in the past year. Stuff.co.nz says the private school situated at Bishop Brian and Hannah Tamaki's City of God in south Auckland saw its costs rise by a third last year to NZ$1.2 million, leaving a major budget shortfall. According to the report, the school failed in its attempts to become a charter school or integrate to the state school system, and has been told it faces "potential uncertainty" by auditors JSA Audit. It is being propped up by donations from another Destiny charity Te Hahi o Nga Matamua Holdings, which loaned the school NZ$142,022 by 2014, Stuff.co.nz says. Te Hahi lists Hannah Tamaki as a director, the report discloses. But it will keep giving financial support to the school "as it is able," Stuff.co.nz discloses citing the school's annual report. According to the report, Destiny Church spokeswoman Anne Williamson said in a statement they were reliant on fee paying students, Government funding and donations. "Unfortunately the funding we receive from the Government is minimal and does not reflect the true cost of educating a student in the New Zealand," the report quotes Ms. Williamson as saying. "Our 2014 financials reflect that, as a school, we are doing all we can to deliver a model of quality education with limited financial resources." Stuff.co.nz says Massey University history professor Peter Lineham spoke to Destiny School board and staff members for his 2013 book Destiny, and wasn't surprised at the school's situation. He said the increasing costs could be related to the school's recent move to include secondary school students, the report adds. "They're prepared to put a lot of money into education because they do have a very, very strong sense of they're building for the future," the report quotes Mr. Lineham as saying. "[Destiny] were quite committed to developing a good Maori, private school but I could see what a desperately uphill struggle it was because the level of fees that they could manage to get out of parents was a lot lower than the average school that's doing Cambridge (International Exams)." Destiny School trustees have started work to fix the finances, including upping fundraising, reducing operating costs and tightening the policy on managing fees, the annual report said, Stuff.co.nz relays. ********* 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 ***