/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160106.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, January 6, 2016, Vol. 19, No. 3 Headlines A U S T R A L I A AIMS 2005-1: Fitch Says Removal of MGIC LMI No Ratings Impact DICK SMITH: Placed Into Voluntary Administration DICK SMITH: Ferrier Hodgson Appointed as Receivers LIFESTYLE PHOTOGRAPHERS: First Creditors' Meeting Set For Jan. 14 C H I N A BEIJING CAPITAL: Declares Bankruptcy; 1,000 Jobs Axed CHINA SHANSHUI: Dispute Intensifies as Unit Files Lawsuit Onshore FORBES CHINA: Magazine Shuts Down HK ZHIYUAN: S&P Assigns 'BB' CCR; Outlook Stable JIANGSU NEWHEADLINE: Fitch Assigns 'BB+(EXP)' Rating to USD Notes I N D I A ACCORD HOSPITALITY: CRISIL Rates INR61.5MM Term Loan at B- AFFORDABLE ROBOTIC: CRISIL Reaffirms B+ Rating on INR65MM Loan AMBER DISTILLERIES: CRISIL Suspends B Rating on INR50MM Cash Loan AMBO EXPORTS: CRISIL Cuts Rating on INR700MM Disc. Loan to 'D' AMBUJA FASHIONS: CRISIL Assigns B Rating to INR70MM Cash Loan ANNEX GLASS: ICRA Puts IrC- Rating on Notice for Withdrawal ATUL FOOD: CRISIL Suspends 'B' Rating on INR100MM Cash Loan AVIAN TECHNOLOGIES: CRISIL Assigns B- Rating to INR32.6MM Loan CLASSI-MECH EQUIPMENTS: CRISIL Suspends D Rating on INR94MM Loan FAIRLIE HOTELS: CRISIL Suspends B Rating on INR80.3MM FCNR Loan G.K. SALES: CRISIL Suspends B+ Rating on INR60MM Cash Loan G. R. POLYFILM: CRISIL Cuts Rating on INR105MM Cash Loan to B- GOVARDHAN ISPAT: ICRA Assigns B+ Rating to INR11.79cr Term Loan GRANITE MART: CRISIL Assigns 'B' Rating to INR5MM Cash Loan HILLWOOD FURNITURE: CRISIL Reaffirms B+ Rating on INR230MM Loan INCOM WIRES: ICRA Suspends B+/A4 Rating on INR18cr Loan INNOVATIVE INFRA: CRISIL Suspends B Rating on INR550MM Loan J.K. AGRO: CRISIL Assigns B- Rating to INR60MM Cash Loan KRS PHARMACEUTICALS: CRISIL Reaffirms B+ Rating on INR76.1MM Loan LAKHANI FILAMENTS: ICRA Withdraws B+/A4 Rating on INR36.14cr Loan LOGIC TRANSWARE: CRISIL Suspends 'D' Rating on INR70MM Cash Loan MAAD MINES: CRISIL Assigns B+ Rating to INR129.8MM Term Loan MAHABIR INDUSTRIES: ICRA Suspends B+ Rating on INR9cr Loan MAHALAKSHMI TELESERVICES: Ind-Ra Assigns 'IND D' LT Issuer Rating MATESHWARI FOOD: ICRA Assigns 'B' Rating to INR10.50cr Loan MEHTA BROTHERS: ICRA Reaffirms B+ Rating on INR35cr Loan MSR DWELLING: CRISIL Suspends 'B' Rating on INR300MM Term Loan OSWAL FASHION: CRISIL Suspends B- Rating on INR275MM Cash Loan P. R. STEELS: CRISIL Suspends B Rating on INR50MM Cash Loan PRADHAMA MULTISPECIALITY: CRISIL Rates INR1.2BB Loan at 'B' R.R. INDUSTRIES: ICRA Reaffirms 'B' Rating on INR5.0cr Loan RAHUL FERROMET: ICRA Cuts Rating on INR8.50cr Loan to D RAJARSHI CARS: CRISIL Assigns B+ Rating on INR105.5MM Loan REGENCY ENTERPRISES: CRISIL Suspends B+ Rating on INR135MM Loan RBBR INFRASTRUCTURE: ICRA Assigns 'B' Rating to INR8.66cr Loan RIO CERAMIC: CRISIL Reaffirms B Rating on INR55MM Term Loan RISING EDUCATION: CRISIL Suspends 'D' Rating on INR250MM Loan SHREE DEV: CRISIL Reaffirms B- Rating on INR70M Channel Loan SIKSHA-O-ANUSANDHAN: ICRA Reaffirms B+ Rating on INR80cr Loan SINTERCOM INDIA: CRISIL Suspends B+ Rating on INR270MM LT Loan SREE ANJANEYA: CRISIL Cuts Rating on INR282.5MM LT Loan to D SWIFT FABRICS: CRISIL Suspends 'D' Rating on INR47.4MM Cash Loan TRIVENI ELECTROPLAST: CRISIL Suspends B Rating on INR70MM Loan VIJAYASRI ENTERPRISES: CRISIL Assigns B+ Rating to INR100MM Loan WELLWISHER TREXIM: CRISIL Suspends B Rating on INR116.5MM Loan M A L A Y S I A NAKAMICHI CORP: Auditor Casts Going Concern Doubt - - - - - ================= A U S T R A L I A ================= AIMS 2005-1: Fitch Says Removal of MGIC LMI No Ratings Impact ------------------------------------------------------------- Fitch Ratings confirms that the removal of lender's mortgage insurance (LMI) provided by MGIC Australia Pty Ltd (MGIC) from two AIMS RMBS transactions will not result in a downgrade or withdrawal of the ratings of the rated notes. AIMS 2005-1 Trust has two loans with MGIC LMI cover, with zero balances, while AIMS 2007-1 Trust has two loans covered by MGIC LMI, that form 1.2% of the pool. On 18 December 2015, these loans were insured with Genworth Financial Mortgage Insurance Pty Ltd (Insurer Financial Strength rating: A+/Stable). Sequential amortisation of the AIMS transactions has resulted in the Class A notes being LMI independent. The current ratings are as follows: AIMS 2005-1 Trust: AUD9.7 million Class A: 'AAAsf'; Outlook Stable; and AUD12.8 million Class B: 'Bsf'; Outlook Stable. AIMS 2007-1 Trust: AUD10.1 million Class A: 'AAAsf'; Outlook Stable; and AUD16.3 million Class B: 'Bsf'; Outlook Stable. DICK SMITH: Placed Into Voluntary Administration ------------------------------------------------ John Durie and Kylar Loussikian at The Australian report that insolvency specialists have taken control of Dick Smith Holdings after the electronics retailer said its lenders balked at providing additional financial support following poor Christmas sales. The Australian relates that Dick Smith, which Australian private- equity firm Anchorage Capital Partners floated on the Australian Securities Exchange around two years ago, said McGrathNicol has been appointed as voluntary administrator and would explore all options to allow the business to continue as a "going concern". Banks, who are owed at least AUD140 million by Dick Smith, have appointed Ferrier Hodgson partners James Stewart, Jim Sarantinos and Ryan Eagle as receivers, the report discloses. They said it would be "business as usual" for Dick Smith's 393 stores while receivers look to sell or restructure the business, says The Australian. However outstanding gift vouchers would not be honoured and deposits could not be refunded. According to the report, creditors have already begun lining up, with catalogue producer PMP saying it is owed AUD4 million by the retailer. PMP chief executive Peter George says it has not yet held talks with administrators regarding the debt or the retailer's ongoing viability. The Australian reports that Dick Smith (DSH) said in a statement that sales and cash generation in December were below management expectations, and it did not expect to be able to secure new funding quickly enough to restock its stores over the next 4-6 weeks. The move, foreshadowed by The Australian, comes after two profit warnings in as many months in the run-up to Christmas. "Whilst confident on the long-term viability of the company, the directors have been unsuccessful in obtaining the necessary support of its banking syndicate to see it through this period," the report quotes Dick Smith as saying in a statement. "The directors are of the view that without this support, there is no option other than to appoint a voluntary administrator." The Australian relates that Dick Smith said it believed the decision was the best way to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders. According to The Australian, Ferrier Hodgson's Mr Stewart said it was too early to clearly identify the primary causes of the company's financial problems and the reasons for its decline, other than saying it had become cash constrained in recent times. "Dick Smith is one of the best known brands associated with consumer electronics in Australia and New Zealand," The Australian quotes Mr Stewart as saying. "We are immediately calling for expressions of interest for a sale of the business as a going concern." He said the New Zealand business -- including 62 stores -- was profitable and expected it would be attractive to potential buyers, the report relates. The Australian says the retailer's 3,300 employees would continue to be paid by the receivers. Dick Smith was last valued at AUD84 million, ahead of its trading halt which followed the battering its shares received after an extended spell of weak sales in recent months, The Australian notes. "The suspension from trading marks a very sorry end for investors," the report quotes CMC Markets' chief strategist Michael McCarthy as saying. "The pain of a wipe out will likely increase general suspicion about the value in buying into private equity IPOs." According to the report, retailer Gerry Harvey said Dick Smith had floated and subsequently failed in "a very strange set of circumstances". "It was a business that had run its course, Woolworths couldn't keep it, they knew they had to get rid of it, and suddenly it goes from being worth nothing to being worth $500m, then suddenly nothing again," The Australian quotes Mr. Harvey as saying. "When they floated it at AUD2.20 a share I wouldn't have bought it at 2c, I saw it as a failed business model that had its day and I didn't quite understand why someone would resurrect something like that or think they could." Dick Smith Holdings Limited Ltd (ASX:DSH) -- http://dicksmithholdings.com.au/-- is a retailer of consumer electronics products. The Company sells a range of products across four categories: office, mobility, entertainment, and other products and services. The Company has two segments: Dick Smith Australia and Dick Smith New Zealand. The Company connects with its customers through four physical store formats, catering for three distinct consumer demographics: Dick Smith, MOVE, David Jones Electronics Powered by Dick Smith and MOVE by Dick Smith Sydney International Airport. The Company's store network consists of approximately 393 stores across Australia and New Zealand, which include approximately 351 Dick Smith stores, approximately 10 MOVE stores, approximately four MOVE by Dick Smith stores and approximately 28 David Jones Electronics Powered by Dick Smith stores. DICK SMITH: Ferrier Hodgson Appointed as Receivers -------------------------------------------------- Dick Smith Holdings Ltd was placed in receivership on Jan. 5 following the appointment of Voluntary Administrators. Ferrier Hodgson partners Mr James Stewart, Mr Jim Sarantinos and Mr Ryan Eagle were appointed Receivers and Managers over DSH and a number of associated entities. The appointment was made by a syndicate of lenders which hold security over the group. Receiver Mr James Stewart said it was too early to clearly identify the primary causes of the company's current financial position and the reasons for its decline other than saying the business had become cash constrained in recent times. He said it would be business as usual while the Receivers look at the restructuring and realisation opportunities for the Group. "Dick Smith is one of the best known brands associated with ,consumer electronics in Australia and New Zealand," Mr Stewart said. "We are immediately calling for expressions of interest for a sale of the business as a going concern." Mr Stewart said that employees will continue to be paid by the Receivers and that it is expected that Australian employee entitlements will be covered under the Fair Entitlements Guarantee (FEG) scheme if the business cannot be sold as a going concern. Mr Stewart added that the New Zealand business was profitable and expected it would be attractive to potential buyers. He also stated that due to the financial circumstances of the Group, unfortunately, outstanding gift vouchers cannot be honoured and deposits cannot be refunded. Affected customers will become unsecured creditors of the Group. There are 3,300 employees and annual sales of approximately AUD1.3 billion. Dick Smith Holdings Limited Ltd (ASX:DSH) -- http://dicksmithholdings.com.au/-- is a retailer of consumer electronics products. The Company sells a range of products across four categories: office, mobility, entertainment, and other products and services. The Company has two segments: Dick Smith Australia and Dick Smith New Zealand. The Company connects with its customers through four physical store formats, catering for three distinct consumer demographics: Dick Smith, MOVE, David Jones Electronics Powered by Dick Smith and MOVE by Dick Smith Sydney International Airport. The Company's store network consists of approximately 393 stores across Australia and New Zealand, which include approximately 351 Dick Smith stores, approximately 10 MOVE stores, approximately four MOVE by Dick Smith stores and approximately 28 David Jones Electronics Powered by Dick Smith stores. LIFESTYLE PHOTOGRAPHERS: First Creditors' Meeting Set For Jan. 14 ----------------------------------------------------------------- Dragan Ljubic of Tribeca Advisory Pty Limited was appointed as administrators of Lifestyle Photographers Pty Limited, formerly trading as Expression Sessions, and B Corporate Pty Limited, formerly Trading as Expression Sessions, on Jan. 4, 2016. A first meeting of the creditors of the Company will be held at Tribeca Advisory Pty Limited, Unit 13, 83 George Street, in Parramatta, on Jan. 14, 2016, at 11:00 a.m. ========= C H I N A ========= BEIJING CAPITAL: Declares Bankruptcy; 1,000 Jobs Axed ----------------------------------------------------- Jane Ho at Crain News Service reports that Beijing Capital Tire Co. Ltd. (BCT), producer of the BCT, Jinglun and Autoguard brands, declared bankruptcy in October, a Chinese industry official has confirmed. Crain News Service, citing Chinese media reports dated June 25 and Nov. 16, relates that BCT had suspended production since early 2015 and started laying off 1,000 employees, or half of its total staff, about six months ago. The report says BCT, an affiliate of state-owned conglomerate Beijing Capital Group in Beijing, reports having annual capacity of 7.1 million radial car, light truck and medium truck tires at two factories in the Beijing area. The company dates to 1970, originally under the name Beijing Tire Factory; it was reorganized in 1999 as BCT. According to Crain News Service, China's corporate bankruptcy law declares that if a bankruptcy application is accepted the court will designate an administrator -- either a task force, a law firm/agency or an individual -- who would be in charge of the process, according to a translation of the law. Thereafter the company could either request for a restructuring period with plans to bring itself back, or try to settle with its creditors, or declare bankruptcy and liquidate assets, the report says. It's not clear at this time which option BCT is pursuing, Crain News Service states. Beijing Capital Group describes itself as a large-scale state- owned enterprise under the State Owned Assets Supervision and Administrative Commission (SASAC) of the Beijing Municipal Government. It operates in three core business sectors: financial services and investments; urban infrastructure development; and real estate. CHINA SHANSHUI: Dispute Intensifies as Unit Files Lawsuit Onshore ----------------------------------------------------------------- Bloomberg News reports that China Shanshui Cement Group Ltd., which defaulted on bonds last year after a shareholder tussle, faces a mounting management dispute after a unit filed a lawsuit against it. Shandong Shanshui Cement Group Ltd., its main operating arm, accused China Shanshui of spreading rumors and filed suit in a court in the eastern city of Jinan alleging it released "false and illegal statements," according to an announcement on the unit's website on Jan. 4, Bloomberg relates. Hong Kong-based China Shanshui's 2020 dollar notes slid 5 cents, the biggest decline since Nov. 11, to 77.8 cents, according to prices compiled by Bloomberg. Bloomberg says investors in China Shanshui have been showing growing concern as the company struggles to settle internal disagreements, after its biggest shareholder Tianrui Group Co. won shareholder approval in December to oust former directors including Chairman Zhang Bin. The Shandong unit said last week it may not be able to repay CNY1.8 billion of bonds due Jan. 21, Bloomberg relays. "Given the situation is complex I don't think there's an easy solution to this without resolving the shareholder's dispute," Bloomberg quotes Ross Lee, a credit analyst at Bank of China Hong Kong Ltd., as saying. "The 2020 bonds should remain volatile as we see many headline news ahead." Bloomberg reports that China Shanshui said on Dec. 31 that authorities in Jinan refused to proceed with an application for change of directors of the Shandong unit. The parent said in the filing last week that some former directors of the unit "illegally retain" documents. According to Bloomberg, Henry Li, who still identifies himself as chief financial officer of Shandong Shanshui despite a China Shanshui filing on Dec. 3 that said he had been terminated effective that day, said Shandong Shanshui sees no possibility of repaying the bonds in principal or interest due Jan. 21. Bloomberg relates that Liu Yiu Keung, executive director at China Shanshui, said the company hasn't received any summons from the Jinan court. He declined to comment further citing exchange rules. "On Shanshui, I think things are getting out of control now and will need the government's 'almighty' hand to resolve issues," Zhi Wei Feng, a credit analyst with Standard Chartered Plc in Singapore told Bloomberg. About China Shanshui China Shanshui Cement Group Limited is engaged in manufacturing and sale of cement and clinker, and limestone mining. The Company is engaged in the production and sales of various types of cements, and the production of commodity clinker necessary for various types of high grade cements in Shandong and Liaoning Provinces. The commodity clinker produced by the Company is mainly sold to clients with cement grinding station. The cement produced by the Company under the brand of Shanshui Dongyue is widely used in construction works for roads, bridges, housing and various types of construction projects. The Company operates in four geographical areas: Shandong Province, Northeastern China, Xinjiang Region and Shanxi Province. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 17, 2015, Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on China Shanshui Cement Group Ltd. to 'D' from 'CC'. At the same time, S&P lowered its long-term Greater China regional scale rating on the company to 'D' from 'cnCC'. S&P also lowered its issue rating on Shanshui's U.S. dollar- denominated senior unsecured notes to 'D' from 'CC' and the Greater China regional scale rating on the notes to 'D' from 'cnCC'. Shanshui is a China-based cement producer. FORBES CHINA: Magazine Shuts Down --------------------------------- The Jakarta Post reports that the year 2015 is ending with another print media marking its final edition, as digital media takes the communication industry by storm. Caught in the vortex this time is Forbes China magazine. The Post relates that associated with the bad news is the much troubled Chinese business conglomerate Fosun International Ltd. Following Hong Kong Morningside Ventures, Fosun became the copyright cooperation partner of Forbes in the Chinese mainland in 2009. Shanghai Zhihui Culture Communication Co Ltd, a subsidiary of Fosun, became the new operator of Forbes China magazine. According to the report, Fosun said in an e-mail reply to China Daily that the authorized operation of Forbes China magazine by Shanghai Zhihui expires Dec. 31, 2015. But Forbes China employees said they were taken by great surprise. According to an insider close to Forbes China, the company had reported a good financial performance since it entered the mainland in 2003, the report says. "We were all surprised to be informed that there might be no new investors and the team, including reporters and editors, will be dismissed. Staff with the company were paid in time and its revenue also increased year-on-year over the past few years," said the insider, who refused to be named, the Post relays. The Post notes that Forbes China had been faced with losses before Fosun took over. But the magazine managed to make a profit the second year after Fosun took over operational responsibility and the profit jumped to more than CNY10 million ($1.54 million) one year later, the report relates citing the insider. The profit mainly came from offline wealth forums. According to the Post, the insider said staff with Forbes China are negotiating with the company, seeking compensation following the conclusion of the contract with Fosun. The magazine has already talked with other investors, but a new contract has yet to be signed, the report says. The Post notes that public information shows that 21st Century Media Co has an 85 percent share in Shanghai Zhihui, while Fosun holds 33 percent of 21st Century Media. However, the previously high-profile 21st Century Media has been in the doldrums since late 2014 when the company's former president Shen Hao was sentenced to four years in prison for blackmailing companies by threatening negative coverage and forcing financial transactions, the report says. Also faced with negative media reporting is Fosun Chairman Guo Guangchang, who was unreachable for four days in mid-December, and said he was assisting a judicial investigation, according to the Post. Mr. Guo has been active in investing in media in the past few years. But few of them have been successful. Instead, some with the same fate of shutting down, such as Global Entrepreneur magazine which ceased publication in late April, the report says. Forbes China was established in the Chinese mainland in 2003. HK ZHIYUAN: S&P Assigns 'BB' CCR; Outlook Stable ------------------------------------------------ Standard & Poor's Ratings Services said that it had assigned its 'BB' long-term corporate credit rating to HK Zhiyuan Group Ltd. The outlook is stable. S&P also assigned its 'cnBBB-' long-term Greater China regional scale rating to the company. At the same time, S&P assigned its 'BB' long-term issue rating and 'cnBBB-' long-term Greater China regional scale rating to a proposed issue of U.S. dollar-denominated senior unsecured bonds that Zhiyuan unconditionally and irrevocably guarantees. ZHIYUAN Group (BVI) Co. Ltd., an offshore subsidiary of Zhiyuan, will issue the notes. The issue ratings are subject to S&P's review of the final issuance documentation. Zhiyuan is the 100%-owned and sole offshore debt-financing subsidiary of Jiangsu New Headline Development Group Co. Ltd. (NHL), which is wholly owned by the Lianyungang Municipal Government. "The rating on Zhiyuan reflects our view that the company is a highly strategic subsidiary of NHL," said Standard & Poor's credit analyst Apple Li. "Therefore our rating on Zhiyuan is one notch below that on the parent NHL (BB+/Stable/--; cnBBB+/--)." Zhiyuan is the sole offshore debt-financing platform of the group. The two entities are strategically, financially, and operationally integrated, in S&P's opinion. S&P believes that Zhiyuan is likely to receive extraordinary government support indirectly through its parent. "We do not consider Zhiyuan a core member of the group because it has a short operating history," said Ms. Li. "The company was established in December 2014 and its stand-alone ability to raise funds for the group and its financial management are untested." S&P has equalized the rating on the proposed notes to the long- term corporate credit rating on Zhiyuan. The company guarantees the notes irrevocably and unconditionally. Structural subordination risks are limited, considering Zhiyuan's low level of priority liabilities. The group plans to use the net proceeds from the proposed debt issuance for general corporate purposes, including refinancing its domestic indebtedness. S&P do not view Zhiyuan's keepwell agreement and undertaking to purchase equity interest as a guarantee. The equity interest purchase undertaking is intended to maintain the company's financial position at a satisfactory level to service its debt. S&P has not assigned a stand-alone credit profile to Zhiyuan because it has virtually no operations at the moment. The stable outlook on Zhiyuan reflects the outlook on NHL and S&P's view that Zhiyuan will remain highly strategic to its parent over the next 24 months. The rating on Zhiyuan will move in tandem with the rating on NHL (with a one-notch differential) unless S&P reassess Zhiyuan's group status. S&P could downgrade Zhiyuan if S&P downgrades NHL. S&P could also downgrade Zhiyuan if S&P believes that its strategic importance within the group has weakened, as indicated by a change in the group's strategic priorities or Zhiyuan's rising operational or financial independence. S&P could upgrade Zhiyuan if S&P upgrades NHL or, in a remote scenario, S&P's assessment of the company's strategic importance improves such that it believes it to be a core subsidiary of the group. JIANGSU NEWHEADLINE: Fitch Assigns 'BB+(EXP)' Rating to USD Notes ----------------------------------------------------------------- Fitch Ratings has assigned Jiangsu NewHeadLine Development Group Co., Ltd.'s (Jiangsu NHL, BB+/Stable) proposed senior unsecured US dollar notes an expected rating of 'BB+(EXP)'. The final ratings on the notes are contingent upon the receipt of final documents conforming to information already received. KEY RATING DRIVERS The notes will be issued by ZHIYUAN Group (BVI) Co., Ltd. and will be unconditionally and irrevocably guaranteed by HK Zhiyuan Group Limited (HKZY), a wholly owned subsidiary of Jiangsu NHL. The notes will be senior unsecured obligations of HKZY and also rank pari passu with all other obligations of HKZY. In place of a guarantee, Jiangsu NHL has granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure that HKZY has sufficient assets and liquidity to meet its obligations under the guarantee for the notes. The notes are rated at the same level as Jiangsu NHL's Issuer Default Rating, given the strong link between Jiangsu NHL and HKZY and because the keepwell and liquidity support deed and deed of equity interest purchase undertaking transfer the ultimate responsibility of payment to Jiangsu NHL. In Fitch's opinion, both the keepwell and liquidity support deed and the deed of equity interest purchase undertaking signal a strong intention from Jiangsu NHL to ensure that HKZY has sufficient funds to honour the debt obligations. The agency also believes Jiangsu NHL intends to maintain its reputation and credit profile in the international offshore market, and is unlikely to default on its offshore obligations. Additionally, a default by HKZY could have significant negative repercussions on Jiangsu NHL for any future offshore funding. The ratings of Jiangsu NHL are credit linked to Lianyungang Municipality, which is located in China's north-eastern Jiangsu Province. This is reflected in the 100% state ownership of Jiangsu NHL, strong municipal oversight of its financials, and strategic importance of the entity's operation to the municipality. RATING SENSIVITIES Any rating action on Jiangsu NHL will result in a similar rating action on the rated bond issued by HKZY. An upgrade of Fitch's credit view on Lianyungang Municipality, as well as a stronger and/or more explicit support commitment from the municipality, may trigger positive rating action on Jiangsu NHL. Significant weakening of Jiangsu NHL's strategic importance to the municipality, dilution of the municipality's shareholding to below 75%, and/or reduced explicit and implicit municipality support, may result in a downgrade. A downgrade could also result from a weaker fiscal performance or increased indebtedness of the municipality, leading to deterioration in the sponsor's internally assessed creditworthiness and, as a result, of Jiangsu NHL's ratings. ========= I N D I A ========= ACCORD HOSPITALITY: CRISIL Rates INR61.5MM Term Loan at B- ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term bank facility of Accord Hospitality and Services (AHAS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 61.5 CRISIL B-/Stable The rating reflects AHAS's exposure to risks associated with timely completion and stabilisation of its ongoing hotel project and susceptibility to geographical concentration and to cyclicality in the hospitality industry. These weakness are mitigated by promoters' extensive entrepreneur experience. Outlook: Stable CRISIL believes AHAS would benefit over the medium term from its promoters' extensive entrepreneur experience. The outlook may be revised to 'Positive' if the hotel project is implemented in a timely manner without any significant cost overrun, and is able to report higher-than-expected occupancy levels, thus improving liquidity. Conversely, the outlook may be revised to 'Negative' if any significant time or cost overrun in project commissioning weakens liquidity. AHAS, established in 2011, is engaged in hospitality business. The firm is promoted by Raigarh-based Mr. Sudip Kumar Moda, Mr. Priti Sudip Moda and Mr. Mahendra Kumar Loda and is currently setting up a three-star hotel, Hotel Accord International in Raigarh (Chhattisgarh). AFFORDABLE ROBOTIC: CRISIL Reaffirms B+ Rating on INR65MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Affordable Robotic and Automation Private Limited continue to reflect ARAPL's modest scale of operations, sizeable working capital requirement, and average financial risk profile because of low net worth and leveraged capital structure. These weaknesses are mitigated by promoter's extensive experience in the robotic automation solutions business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 10 CRISIL A4 (Reaffirmed) Overdraft Facility 50 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 65 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes ARAPL will benefit over the medium term from its promoter's extensive experience. The outlook may be revised to 'Positive' if the company generates significantly better-than- expected cash accruals or substantial capital is infused along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if ARAPL generates lower-than- expected cash accruals, working capital requirement is significantly large, or a sizeable debt-funded capital expenditure is undertaken. ARAPL, incorporated in 2009, is promoted by Mr. Milind Padole and headquartered in Pune. It primarily provides automation solutions for welding lines using robotics and related designing services. It also provides material handling automation services and has forayed into providing automated car parking systems. AMBER DISTILLERIES: CRISIL Suspends B Rating on INR50MM Cash Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Amber Distilleries Limited (ADL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable Proposed Long Term Bank Loan Facility 23.5 CRISIL B/Stable Term Loan 6.5 CRISIL B/Stable The suspension of rating is on account of non-cooperation by ADL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ADL is yet to provide adequate information to enable CRISIL to assess ADL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. ADL was established in 1985 by Kesar Enterprises Ltd, and was later taken over by Mr. Pratap Talwar and his family members in 2006. The company manufactures Indian-made foreign liquor (IMFL) under its own brands and sells it in the domestic and international markets. It has a distillery unit near Thane (Maharashtra). AMBO EXPORTS: CRISIL Cuts Rating on INR700MM Disc. Loan to 'D' -------------------------------------------------------------- CRISIL has downgraded its rating on the short-term bank facilities of Ambo Exports Limited (AEL) to 'CRISIL D' from 'CRISIL A4'. The rating downgrade reflects continuous overdraws in AEL's packing credit limit owing to weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL D (Downgraded from 'CRISIL A4') Foreign Bill 700 CRISIL D (Downgraded Discounting from 'CRISIL A4') Letter of Credit 50 CRISIL D (Downgraded from 'CRISIL A4') Proposed Short Term 50 CRISIL D (Downgraded Bank Loan Facility from 'CRISIL A4') AEL has working capital-intensive operations and is exposed to risks related to seasonality and to volatility in prices of the products that it trades in, leading to limited pricing flexibility. These weaknesses are mitigated by diversified geographic and customer profile, its promoters' extensive experience in the tea industry, and established customers' relationships. AEL commenced operations in 1992 and exports commodities such as tea, oil, rice, dal, and biscuits. It is promoted by Mr. O P Agarwal (based in Kolkata) and his family. AMBUJA FASHIONS: CRISIL Assigns B Rating to INR70MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facility of Ambuja Fashions Pvt Ltd (AFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable The rating reflects the promoters' extensive experience in the textile industry. These rating strength is partially offset by the modest scale of operations and average financial risk profile in a highly fragmented and competitive textile industry. Outlook: Stable CRISIL believes AFPL will benefit over the medium term, supported by its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the scale of operations and profitability improve significantly along with efficient working capital management, leading to higher-than-expected accrual. Conversely, the outlook may be revised to 'Negative' if the financial risk profile, especially liquidity, weakens due to adversely affected revenue or profitability, caused by decline in orders, or increased working capital requirements or a large, debt-funded capital expenditure programme. AFPL, incorporated in 1989 as a proprietorship firm was reconstituted as a private limited company under the Directorship of Ms. Pinky Agarwal and Mr. Mukesh Agarwal. AFPL is a part of the Anjani group. The promoters have 5-10 years of relevant experience. The company trades grey clothes as well as sells bed sheets. The entire process of converting grey cloth into fabric is outsourced to local vendors. The company rents warehouse facility as and when required, because most of its goods are delivered directly to customers. ANNEX GLASS: ICRA Puts IrC- Rating on Notice for Withdrawal ----------------------------------------------------------- ICRA has placed the issuer rating of IrC- assigned to Annex Glass Industries Private Limited on notice for withdrawal for twelve months. As per ICRA's 'Policy on Withdrawal of Credit Rating', the aforesaid rating will be withdrawn after twelve months from the date of this withdrawal notice. ICRA has placed the issuer rating of IrC- assigned to Annex Glass Industries Private Limited on notice for withdrawal for twelve months. As per ICRA's 'Policy on Withdrawal of Credit Rating', the aforesaid rating will be withdrawn after twelve months from the date of this withdrawal notice. Annex Glass Industries Private Limited was incorporated on 28.08.2007 and deals in all types of safety glass, toughened glass, float & plate glass, insulated and all other glass doors and fittings. The initial promoters were Mr. P. Bapaiah and Mr. S. Anilkumar. Later Mr. P.Krishna Kishore and Mr. P. Krishna Kiran, sons of Mr. P. Bapaiah joined the board. ATUL FOOD: CRISIL Suspends 'B' Rating on INR100MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Atul Food Industries (AFI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B/Stable The suspension of rating is on account of non-cooperation by AFI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AFI is yet to provide adequate information to enable CRISIL to assess AFI'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Established in 1970, AFI is a Delhi-based proprietorship firm that processes chana dal. It was promoted by Mr. Shyam Lal Mittal. AVIAN TECHNOLOGIES: CRISIL Assigns B- Rating to INR32.6MM Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' ratings to the bank facilities of Avian Technologies (AT). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 3.9 CRISIL B-/Stable Long Term Loan 32.6 CRISIL B-/Stable Cash Credit 20.0 CRISIL B-/Stable Foreign Letter of Credit 19.5 CRISIL B-/Stable The ratings reflect AT's nascent stage and modest scale of operations, customer concentration in revenue profile, exposure to competition, and below-average financial risk profile because of small net worth, high gearing, and weak debt protection metrics. These weaknesses are partially offset by its partners' extensive experience in the steel fabrication industry. Outlook: Stable CRISIL believes AT will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' in case of significant improvement in scale of operations and profitability, along with efficient working capital management, leading to better financial risk profile and liquidity. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected cash accrual or larger- than-expected working capital requirement or sizeable debt-funded capital expenditure, leading to increased pressure on liquidity. AT, established in 2013-14 (refers to financial year, April 1 to March 31), is a partnership firm of Mr. Anupkumar D and Ms. Lakshmi Venkatsubramanian. It is engaged in sheet metal fabrication and caters to industries such as capital goods, automotive, and construction equipment. Its plant is in Chennai and has installed capacity of 150 tonne per month. CLASSI-MECH EQUIPMENTS: CRISIL Suspends D Rating on INR94MM Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Classi-Mech Equipments Private Limited (CME). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL D Cash Credit 36 CRISIL D Long Term Loan 94 CRISIL D The suspension of ratings is on account of non-cooperation by CME with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CME is yet to provide adequate information to enable CRISIL to assess CME'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' CME was incorporated in 2006-07, promoted by Mr. Harishchandra Raut. The company is engaged in manufacturing and fabrication of pharmaceutical instrument parts and other heavy engineering equipment. CME's products include automation and panel works, liquid filling machines, pharmaceutical machines, elevator bodies, and heavy industrial fabrication works. Its plants are ISO 9001: 2008-certified by TUV NORD. FAIRLIE HOTELS: CRISIL Suspends B Rating on INR80.3MM FCNR Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Fairlie Hotels and Resorts Private Limited (Fairlie). Amount Facilities (INR Mln) Ratings ---------- --------- ------- FCNR Loan 80.3 CRISIL B/Stable Overdraft Facility 4.0 CRISIL B/Stable Term Loan 9.5 CRISIL B/Stable The suspension of rating is on account of non-cooperation by Fairlie with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Fairlie is yet to provide adequate information to enable CRISIL to assess Fairlie'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 2008, Fairlie operates a three-star hotel, Country Inn & Suites, in Chattarpur, New Delhi, under the Country Inn brand managed by Carlson, its O&M partner. The hotel has 37 rooms, including executive rooms. Facilities offered by the hotel include restaurants, bar, coffee shop, banquet halls, and conference centres. The hotel is developed on a farm house (owned by the promoters), with two lawns that are primarily used for functions. It commenced operations in April 2011. G.K. SALES: CRISIL Suspends B+ Rating on INR60MM Cash Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of G.K. Sales Corporation (GKSC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 Cash Credit 60 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 10 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by GKSC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GKSC is yet to provide adequate information to enable CRISIL to assess GKSC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' GKSC, a partnership firm, established in 1986, by the Raipur (Chhattisgarh)-based Parwani family, trades in various automotive spare parts. The firm is the sole authorised distributor for many established companies like Mahindra and Mahindra Ltd, Exxon Mobil India, TVS Tyres, and Federal-Mogul Goetze (India) Ltd. The overall operations of the firm are managed by Mr. Hemant Parwani and his wife Mrs Neha Parwani. The firm has its showroom and head office in Raipur. G. R. POLYFILM: CRISIL Cuts Rating on INR105MM Cash Loan to B- -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of G. R. Polyfilm Private Limited (GRPPL) to 'CRISIL B-/Stable ' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 105 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Term Loan 20 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') The downgrade reflects deterioration in GRPPL's business risk profile led by decline in turnover over the past three years. Turnover declined to INR252.0 million in 2014-15 (refers to financial year, April 1 to March 31) from INR343.1 million in 2013-14 and INR395.4 million in 2012-13 on account of lower realisation and decline in demand. However, operating profitability remained stable, at 6.0 percent, in 2014-15 supported by favourable raw material costs. The company has a leveraged capital structure indicated by high gearing of 1.6 times and small networth of INR79.4 million as on March 31, 2015. Debt protection metrics remain weak, with interest coverage and net cash accrual to total debt ratios of 1.2 times and 0.02 time, respectively, in 2014-15. The rating reflects GRPPL's small scale of operations, large working capital requirement, and weak financial risk profile because of small networth and weak debt protection measures. These weaknesses are partially offset by its promoters' extensive experience in manufacturing flexible packaging materials and their established relationships with customers and suppliers. Outlook: Stable CRISIL believes GRPPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if financial risk profile improves significantly, because of better capital structure, and substantial increase in revenue and profitability. Conversely, the outlook may be revised to 'Negative' in case of deterioration in working capital management, or large debt-funded capital expenditure, leading to deterioration in liquidity. GRPPL was incorporated in 1990 by Kolkata-based Mr. Rabindar Jaiswal and his other family members. The company manufactures flexible packaging materials such as polyester laminated rolls, multilayer flexible films, oil print films, water printed films, bags, and pouches. Its manufacturing facilities are in Kolkata and operations are managed by promoter-director. GOVARDHAN ISPAT: ICRA Assigns B+ Rating to INR11.79cr Term Loan --------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B+ to the INR11.79 crore term loan and INR8.46 crore cash credit facilities of Govardhan Ispat (India) Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- Term Loan 11.79 [ICRA]B+ assigned Fund Based Limits- Cash Credit 8.46 [ICRA]B+ assigned The assigned rating takes into consideration the cyclicality inherent in the iron and steel industry, which is going through a difficult phase at present and the lack of track record of the company in operating across business cycles. The rating also factors in the aggressive capital structure of the company with a gearing of 7.24 time as on March 31, 2015. ICRA expects the overall gearing of the company to remain high, at least in the short term, given the working capital debt required to support GIPL's business. ICRA has also taken note of the debt servicing obligations arising on the term loan availed, which is likely to exert pressure on cash flows to an extent in the near at least. The rating is also impacted by the lack of vertical integration in the company's stand-alone rolled products manufacturing business, making margins sensitive to input and output prices. The rating, however, favourably factors in the experience of the promoters in the steel industry and favourable location of the plant in Bihar, which is in proximity to raw material sources, reducing inward freight costs. The rating also considers the manufacturing franchisee arrangement with Kamdhenu Ispat Limited to sell the entire production of mild steel products under the "Kamdhenu" brand, with the latter being an established player having a strong brand image in the steel industry. Incorporated in 2013, Govardhan Ispat (India) Private Limited (GIPL) is engaged in the manufacturing of mild steel (MS) structural items, namely channels, angles, rounds, flats and squares. The manufacturing facility of the company is located at Didarganj, Patna, Bihar. The current annual production capacity of the company stands at 60,000 metric tonne (MT). Recent Results During the first six months of 2015-16, the company reported a net profit of INR0.74 crore (provisional) on an operating income of INR24.01 crore (provisional), against a net loss of INR0.38 crore on an operating income of INR1.65 crore in 2014-15. GRANITE MART: CRISIL Assigns 'B' Rating to INR5MM Cash Loan ----------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Granite Mart Limited (GML), and has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to these facilities. The ratings had been suspended by CRISIL as per its rating rationale dated July 31, 2015 as the company had not provided necessary information to review the ratings. GML has now shared the requisite information, thereby enabling CRISIL to assign ratings to the bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 135 CRISIL A4 (Assigned; Suspension Revoked) Cash Credit 5 CRISIL B/Stable (Assigned; Suspension Revoked) Letter of Credit 35 CRISIL A4 (Assigned; Suspension Revoked) Packing Credit 80 CRISIL A4 (Assigned; Suspension Revoked) The ratings reflect GML's stretched liquidity with its large working capital requirements resulting in full utilization of its bank limits. The ratings of the company are also constrained on account of its small scale of operations in the intensely competitive granite processing industry, and the susceptibility of its profitability margins to volatility in raw material prices and fluctuations in foreign exchange rates. These rating weaknesses are partially offset by the extensive experience of GML's promoters in the granite industry. Outlook: Stable CRISIL believes that GML will continue to benefit over the medium term from its promoters' extensive industry experience and its established relations with customers. The outlook may be revised to 'Positive' if there is a sustained improvement in the company's working capital management, or if there is substantial and sustained increase in its scale of operations while it maintains its profitability margins. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in GML's profitability margins or significant deterioration in its capital structure caused most likely by a stretch in its working capital cycle. GML was set up in 1999 by Mr. Kamal Kumar Agarwal, Mr. Ashok Kumar Agarwal, and Mr. Mudit Agarwal. The company processes and polishes rough granite blocks to manufacture granite slabs and monuments. It is based in Hyderabad (Andhra Pradesh). HILLWOOD FURNITURE: CRISIL Reaffirms B+ Rating on INR230MM Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Hillwood Furniture Pvt Ltd (HFPL; part of the Hillwood group) continue to reflect the Hillwood group's below-average financial risk profile because of high gearing and small networth, modest scale of operations, and exposure to intense competition in the timber industry. These weaknesses are partially offset by promoter's extensive experience in the timber trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reaffirmed) Cash Credit 230 CRISIL B+/Stable (Reaffirmed) Export Packing Credit 10 CRISIL A4 (Reaffirmed) Letter of Credit 140 CRISIL A4 (Reaffirmed) For arriving at its ratings, CRISIL has combined the business and financial risk profiles of HFPL and Hillwood Imports and Exports Pvt Ltd (HIEPL). This is because both the companies, together referred to as the Hillwood group, are in a similar line of business, share a common management team, and have fungible cash flows. Outlook: Stable CRISIL believes the Hillwood group will continue to benefit over the medium term from its promoter's industry experience. The outlook may be revised to 'Positive' if financial risk profile improves significantly, supported by increase in revenue and considerable improvement in operating margin. Conversely, the outlook may be revised to 'Negative' if financial risk profile weakens because of large debt-funded capital expenditure or decline in operating margin, or if increase in working capital requirement weakens liquidity. HFPL and HIEPL, based in Kerala, were incorporated in 2001-02 (refers to financial year, April 1 to March 31) and process timber logs. HFPL also manufactures building materials such as window, door, and kitchen frames. HFPL primarily deals in teakwood, while HIEPL deals mostly in hardwood. INCOM WIRES: ICRA Suspends B+/A4 Rating on INR18cr Loan ------------------------------------------------------- ICRA has suspended its long-term rating of [ICRA]B+ and short-term rating of [ICRA]A4 assigned to the INR18 crore bank facilities of Incom Wires and Cables Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. INNOVATIVE INFRA: CRISIL Suspends B Rating on INR550MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Innovative Infradevelopers Private Limited (IIDL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 29 CRISIL A4 Proposed Long Term Bank Loan Facility 50 CRISIL B/Stable Term Loan 550 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by IIDL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, IIDL is yet to provide adequate information to enable CRISIL to assess IIDL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings', Incorporated in 1982, IIDL is a 45:55 joint venture between members of the Mittal and Bansal families. It is developing a hotel-cum-commercial complex comprising a four-star hotel, a complex for corporate offices and industrial city in Taoru. The hotel will be run under the Hyatt brand, with the Hyatt group as IIDL's O&M partner. The project is in Haryana and is located close to the industrial and residential belt of Manesar. Mr. Amit Bansal (one of the directors) has an experience in developing real estate projects as he had worked with a company in Florida and had developed housing project in Gandhinagar (Ahmedabad). The promoters of IIDL are now focusing on the real estate sector. J.K. AGRO: CRISIL Assigns B- Rating to INR60MM Cash Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to long-term bank loan facilities of J.K. Agro Food Industries (JKAFI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B-/Stable Long Term Loan 40 CRISIL B-/Stable The rating reflects the firm's below-average financial risk profile, modest scale of operations, and intense competition in the rice-milling industry. These weaknesses are partially offset by the partners' extensive experience in the industry. Outlook: Stable CRISIL believes JKAFI will benefit over the medium term from the partners' extensive experience in the rice industry. The outlook may be revised to 'Positive' if revenue and profitability increase substantially leading to improvement in the financial risk profile, particularly liquidity or in case of significant infusion of capital into the firm resulting in improved capital structure. Conversely, the outlook may be revised to 'Negative' if the firm undertakes large, debt-funded capital expenditure, or if revenue and profitability decline substantially or if there is withdrawal from the partners' capital, leading to deterioration in the financial risk profile. Set up in 2014, JKAFI is a partnership firm that processes (milling and sorting) of rice. The operations are managed by Mr. T R Madhusudhana. The firm is based in Tumkur (Karnataka) and its facility has a processing capacity of 6 tonnes per hour. KRS PHARMACEUTICALS: CRISIL Reaffirms B+ Rating on INR76.1MM Loan ----------------------------------------------------------------- CRISIL ratings on the bank facilities of KRS Pharmaceuticals Private Limited (KPPL) continue to reflect its small scale of operations in the intensely competitive bulk drugs industry, the working capital-intensive nature of operations, and small net worth limiting the financial flexibility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reaffirmed) Cash Credit 15 CRISIL B+/Stable (Reaffirmed) Term Loan 76.1 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by the extensive experience of promoters in the pharmaceuticals industry, and the above-average financial risk profile marked by its low gearing and above-average debt protection metrics. Outlook: Stable CRISIL believes KPPL will continue to benefit over the medium term from the promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company registers a substantial and sustained increase in its scale of operations, while maintaining its profitability margins, or there is a substantial improvement in its net-worth on the back of sizeable equity infusion by its promoters. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in KPPL's profitability margins, or significant deterioration in its capital structure caused most likely by a stretch in its working capital cycle or significant debt-funded capital expenditure. KPPL was set up in 2004 by Mr. B Narendra and Mr. B L Swamy. The company manufactures bulk drugs and intermediates. Its plant is located in Hyderabad (Telangana) and Visakhapatnam (Andhra Pradesh). LAKHANI FILAMENTS: ICRA Withdraws B+/A4 Rating on INR36.14cr Loan ----------------------------------------------------------------- ICRA has withdrawn the suspended the ratings of [ICRA]B+ and [ICRA]A4 assigned to the INR36.14 crore Bank Loans Programme of Lakhani Filaments Private Limited. As per ICRA's policy on withdrawals, ICRA can withdraw the ratings, in case the rating(s) remain suspended for more than three years. LOGIC TRANSWARE: CRISIL Suspends 'D' Rating on INR70MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Logic Transware India Private Limited (LTIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL D The suspension of rating is on account of non-cooperation by LTIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, LTIPL is yet to provide adequate information to enable CRISIL to assess LTIPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. LTIPL was incorporated in 2000, promoted by Mr. Ajit Nair and his wife, Mrs. Manjulakshmi Nair. The company provides logistics services such as ocean freight forwarding, custom clearing, warehousing, distribution, and surface transportation. It has its head office in Mumbai (Maharashtra). It has around 10 offices across India to look after its business in various ports and cities such as Chennai (Tamil Nadu), Kochi (Kerala), Bengaluru (Karnataka), Pune (Maharashtra), Mumbai, Ahmedabad (Gujarat), and Delhi. Mr. Nair oversees the company's daily operations. MAAD MINES: CRISIL Assigns B+ Rating to INR129.8MM Term Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Maad Mines and Minerals Private Limited (MMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 129.8 CRISIL B+/Stable Cash Credit 100 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 20.2 CRISIL B+/Stable The rating reflects MMPL's weak financial risk profile due to aggressive capital structure and working capital-intensive operations. These weaknesses are mitigated by promoters' extensive experience in the construction material industry, operational synergies with the group and associates companies and healthy profit margins. Outlook: Stable CRISIL believes MMPL will benefit from its promoters' extensive experience. The outlook may be revised to 'Positive' if scale of operations significantly increases, or capital structure improves due to equity infusion. Conversely, the outlook may be revised to 'Negative' if any large debt-funded capital expenditure, significant decline in profitability or stretched working capital cycle weakens financial risk profile, particularly liquidity. Incorporated in 2011, Mumbai-based MMPL is promoted by Mr. Arvind Singh and Mr. Anil Gupta. It crushes stones to produce aggregates, sand and fly ash bricks used in the construction sector. MAHABIR INDUSTRIES: ICRA Suspends B+ Rating on INR9cr Loan ---------------------------------------------------------- ICRA has suspended its long-term rating of [ICRA]B+ assigned to the INR9 crore bank facilities of Mahabir Industries. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MAHALAKSHMI TELESERVICES: Ind-Ra Assigns 'IND D' LT Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Mahalakshmi Teleservices (Mahalakshmi) a Long-Term Issuer Rating of 'IND D'. A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS The ratings reflect Mahalakshmi's ongoing delays in debt servicing and the over-utilisation of its working capital limits for the twelve months ended November 2015. RATING SENSITIVITIES Positive: Timely debt servicing for a period of at least three consecutive months could result in positive rating action. COMPANY PROFILE Established in 2001 it offers services for Telecom Infrastructure Buildings including design, supply, installation and maintenance of towers, optic fiber network, wireless network etc. Rating actions on Mahalakshmi's bank loans are as follows: -- Long Term Issuer Rating: Assigned 'IND D' -- INR20.0m fund-based working capital limits: Assigned Long Term and Short Term 'IND D' -- INR50.0m term loan limits: Assigned Long term 'IND D' -- INR25.0m non-fund-based working capital limits: Assigned Short Term 'IND D' MATESHWARI FOOD: ICRA Assigns 'B' Rating to INR10.50cr Loan ----------------------------------------------------------- ICRA has assigned its long term rating of [ICRA]B) to the INR18.0 crore fund based bank facilities of Mateshwari Food Stuff Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund Based Facility Term Loan 7.50 [ICRA]B ; Assigned Long-term Fund Based Facility Cash Credit 10.50 [ICRA]B ; Assigned ICRA's rating takes into account MFS' limited track record of operations given that the company has commenced commercial production only from May 2015.The rating also takes into account the high competitive intensity in the rice milling industry, with the presence of a few large players and a number of small players. The profitability is also vulnerable to agro climatic risks impacting the availability and pricing of paddy. However, the rating positively factors in the timely setup of the production facility within the estimated cost and the comfortable repayment period. Going forward, the ability of the company to scale up its operations in a profitable manner and maintain optimal working capital intensity will be the key rating sensitivities. Established in May 2014, MFS is promoted by Mr. Ramdeep Sharma and family. The company is engaged in milling and processing of basmati rice. The company's plant is located at Bundi, Rajasthan and has a processing capacity of 22,000 metric tonnes per annum (MTPA). The commercial production commenced from May 2015. The company procures paddy from the local mandi in Bundi and sells its products to rice exporters in Gujarat, Punjab and Delhi. MEHTA BROTHERS: ICRA Reaffirms B+ Rating on INR35cr Loan -------------------------------------------------------- ICRA has re-affirmed the [ICRA]B+ rating to the INR35.00 crore fund based facilities of Mehta Brothers Gems Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits Post shipment credit (PSC) 35.00 [ICRA]B+ reaffirmed Fund based limits Packing credit(PC) sublimit of PSC (7.00) [ICRA]B+ reaffirmed Fund based limits Packing credit(PC) Diamond Dollar Account (DDA) sublimit of PSC (35.00) [ICRA]B+ reaffirmed Fund based limits Direct Export sublimit of PSC (35.00) [ICRA]B+ reaffirmed Fund based limits Group Export sublimit of PSC (7.00) [ICRA]B+ reaffirmed The rating reaffirmation continues to remain constrained by Mehta Brothers Gems Private Limited's (MBGPL) weak financial profile characterised by strained liquidity position due to large inventory levels which has led to relatively high working capital utilization and high dependence of creditor funding in the business. The rating is also constrained by the company's highly leveraged capital structure, however, comfort is derived from the fact that a significant proportion of the total debt is from promoters and family. With an export dominated sales profile; the revenues of the company continue to remain vulnerable to the economic conditions in key international markets and foreign exchange fluctuations, albeit the currency risk is partly mitigated by a natural hedge from import of rough diamonds while there is an absence of any firm hedging mechanism. ICRA also notes that the company operates in an industry marked by strong competition from unorganised as well as organised players resulting in limited pricing power which further constrain the ratings. ICRA also takes note of the currently challenging operating environment for the CPD industry characterized by slowdown in global demand, entailing stagnancy in polished diamond prices as against relatively higher rough prices. The rating, however, continue to reflect the vast experience of the directors in the diamond industry supported by a professional management setup, long relationships with customers and the company's established sourcing arrangements with its overseas associates which ensures uninterrupted supply of rough diamonds. Mehta Brothers Gems Private Limited (MBGPL) was established in 1966 as a partnership firm by Mr. Dinesh Mehta & Mr. Jagdish Mehta. Gradually; in 2005 the entity's legal status was converted into a private limited company. The company is engaged in the business of manufacturing cut and polished diamond of size ranging medium to high carat in different shapes and colour. The company has its registered office at Mumbai and dedicated processing facilities at Borivali and Goregaon in Mumbai. MSR DWELLING: CRISIL Suspends 'B' Rating on INR300MM Term Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of MSR Dwelling Private Limited (MSR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Term Loan 300 CRISIL B/Stable The suspension of rating is on account of non-cooperation by MSR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MSR is yet to provide adequate information to enable CRISIL to assess MSR'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. Set up in 2011 by Mr. Madhusudhan Reddy, MSR is engaged in the development of residential real estate projects in Bengaluru (Karnataka). OSWAL FASHION: CRISIL Suspends B- Rating on INR275MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Oswal Fashion Private Limited (OFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 275 CRISIL B-/Stable Proposed Long Term Bank Loan Facility 1.6 CRISIL B-/Stable Working Capital Term Loan 3.4 CRISIL B-/Stable The suspension of rating is on account of non-cooperation by OFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, OFPL is yet to provide adequate information to enable CRISIL to assess OFPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' OFPL was incorporated in 1997, promoted by Mr. Khmti Lal Jain. The company manufactures T-shirts, pullovers, and jackets. P. R. STEELS: CRISIL Suspends B Rating on INR50MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of P. R. Steels (PRS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable Term Loan 15 CRISIL B/Stable The suspension of rating is on account of non-cooperation by PRS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PRS is yet to provide adequate information to enable CRISIL to assess PRS'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 2006, PRS manufactures stainless steel and aluminium utensils. The firm sells products under its own brands, Neelkamal Soni, Paras Soni, and PR. Its manufacturing unit in Manakpur (Haryana) is managed by Mr. Pawan Soni and his brother Mr. Rajneesh Soni. PRADHAMA MULTISPECIALITY: CRISIL Rates INR1.2BB Loan at 'B' ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Pradhama Multispeciality Hospitals & Research Institute Limited (PMSHRIL). The rating reflects the company's moderate project implementation risk and below-average financial risk profile because of weak debt protection metrics. These weaknesses are partially offset by the extensive experience of the promoters in the healthcare industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 1200 CRISIL B/Stable Outlook: Stable CRISIL believes PMSHRIL will commence operations at its hospital without any time or cost overrun. The outlook may be revised to 'Positive' in case of substantial revenue and profitability, backed by efficient working capital management, resulting in healthy cash accrual. Conversely, the outlook may be revised to 'Negative' if the project faces significant time or cost overrun leading to a delay in the commencement of operations, resulting in low cash accrual. Incorporated in 2014, PMSHRIL is setting up a 593-bed multi- specialty hospital in Visakhapatnam, Andhra Pradesh. The operations of the hospital will be managed by Dr. Visweswara Rao Pusarla and Dr. K Ramamurthy Kummaraganti. R.R. INDUSTRIES: ICRA Reaffirms 'B' Rating on INR5.0cr Loan ----------------------------------------------------------- ICRA has reaffirmed its rating of [ICRA]B on the INR5.00 crore cash credit facility and the INR2.43 crore term loan facility of R.R. Industries. ICRA has also reaffirmed its rating of [ICRA]A4 on the INR0.03 crore short-term non-fund-based limits and INR0.32 crore letter of credit (sub-limit of term loan) of RRI. ICRA has also reaffirmed its ratings of [ICRA]B/[ICRA]A4 on the INR1.54 crore unallocated limits of RRI. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.00 [ICRA]B; reaffirmed Term Loan 2.43 [ICRA]B; reaffirmed Non-Fund Based Facility 0.03 [ICRA]A4; reaffirmed Letter of Credit (sub-limit of term loan) (0.32) [ICRA]A4; reaffirmed Unallocated Limit 1.54 [ICRA]B/[ICRA]A4; reaffirmed The ratings reaffirmation takes into account the stable operating income of the firm in FY15; however, the firm's scale of operations continues to remain small at an absolute level. ICRA's ratings continue to be constrained by the firm's small scale of operations, its low profitability, and its weak financial profile as characterized by high gearing levels on account of the high working capital intensity of operations and weak debt protection indicators. The ratings also take into account the intensely competitive nature of the industry, which exerts pressure on the firm's operating margins. However, the ratings favourably take into account the extensive experience and the long track record of the promoters in the rice milling industry. The favourable location of the plant with proximity to a major rice growing area, which results in the easy availability of paddy and the stable long term demand prospects for the rice industry, with India being the second largest producer and consumer of rice in the world. The firm's ability to increase its scale of operations, improve its profitability and efficiently manage its working capital requirements will be the key rating sensitivities. RRI was established as a partnership firm in 2009. The firm is engaged in the milling of rice at its plant located in Kashipur, Uttarakhand. Initially, the firm had an installed capacity of 4 Metric Tonnes Per Hour (MTPH) which was gradually increased to the current level of 8 MTPH. The firm is owned and managed by the Agarwal family, with the partners being Mr. Sachin Agarwal, Mr. Anubhav Agarwal, Mr. Gaurav Agarwal and Mr. Ashok Agarwal. Recent Results During FYs15, RRI recorded a net profit of INR0.14 crore on an operating income of INR10.10 crore, as against a net profit of INR0.11 crore on an operating income of INR10.42 crore in the previous year. RAHUL FERROMET: ICRA Cuts Rating on INR8.50cr Loan to D ------------------------------------------------------- ICRA has revised the long term rating assigned to the INR4.83 crore (reduced from INR5.00 crore) term loan facilities and the INR6.00 crore long-term fund based cash credit facility of Rahul Ferromet & Engg Private Limited from [ICRA]B+ to [ICRA]D. ICRA has also revised the short-term rating assigned to the INR8.50 crore (increased from INR8.35 crore) non fund based facilities of RFEPL from [ICRA]A4 to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 6.00 Revised from [ICRA]B+ Based-Cash Credit to [ICRA]D Facility Long Term Fund 4.83 Revised from [ICRA]B+ Based Term Loans to [ICRA]D Short Term Non 8.50 Revised from [ICRA]A4 Fund Based Limits to [ICRA]D The revision in ratings takes into account delays in debt servicing obligations and instance of Letter of Credit (LC) devolvement because of its strained liquidity position following delayed in receipt of payments from customers as well as high inventory build-up post commencement of manufacturing operations during FY 2015. The ratings continue to be constrained by the company's weak financial profile characterized by the relatively modest scale of operations, albeit growth in FY 2015, adverse capital structure, weak coverage indicators and high working capital intensity. ICRA takes into account the limited value addition of trading operations and the high competitive intensity in the domestic steel industry from the large number of steel traders and cheaper imports from China resulting in thin profitability which further remains vulnerable to volatility in steel prices. Further, the profitability also remains significantly exposed to foreign exchange rate fluctuations with a major portion of raw material procurement being met through direct/indirect imports, without any formal hedging policy. The ratings, however, continue to factor in the longstanding experience of the promoters in stainless steel pipe manufacturing and steel trading industry and the established relationships of the promoters with suppliers and customers. ICRA also notes the stable demand outlook for the company's products driven by growth across its end user segments comprised of chemical, dairy, pharmaceuticals and food and beverage sectors. Incorporated in 2003, Rahul Ferromet & Engg Pvt. Ltd. (RFEPL) is managed by Mr. Babulal T Shah, Mr. Vimal B Shah and Mr. Abhishek Shah. Till 2013, RFEPL was engaged in the trading of stainless steel pipes, tubes and coils for industrial applications to industries like pharmaceuticals, chemicals, fertilizers, cement, paper & pulp, water purifiers, heat exchangers, condensers, sugar, petrochemicals & oil and gas refineries. During FY 2014, the company set up a greenfield project in Ankleshwar (Gujarat) to carry out electro-polishing and electro-plating of seamless and welded pipes and tubes used in chemical, pharmaceutical and oil & gas industries. The plant became operational in December 2013 and has an installed capacity of 660 MTPA (metric tons per annum). Recent Results In FY 2015, RFEPL reported an operating income of INR42.48 crore and profit after tax of INR0.45 crore as against an operating income of INR28.92 crore and profit after tax of INR0.19 crore in FY 2014. RAJARSHI CARS: CRISIL Assigns B+ Rating on INR105.5MM Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Rajarshi Cars Private Limited (RCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Drop Line Overdraft Facility 105.5 CRISIL B+/Stable Electronic Dealer Financing Scheme (e-DFS) 80.0 CRISIL B+/Stable The rating reflects RCPL's modest scale of operations and dependence on the performance of Nissan Motor India Pvt Ltd (NMIPL) and the success of their car models. Also, RCPL faces intense competition in the automotive dealership business. These weaknesses are partially offset by promoter's industry experience, and established relationship with NMIPL and exclusive dealership of its passenger cars in Ahmedabad (Gujarat). Outlook: Stable CRISIL believes RCPL will continue to benefit over the medium term from its established market position in Ahmedabad. The outlook may be revised to 'Positive' if cash accrual is larger than expected, leading to improvement in capital structure. Conversely, the outlook may be revised to 'Negative' in case of lower-than- expected accrual or deterioration in financial risk profile due to stretch in working capital requirement. RCPL, incorporated in 2011 and promoted by Ahmedabad-based Mr. Virendrasinh N Vagehla, is an authorised dealer of NMIPL's passenger cars in Ahmedabad. REGENCY ENTERPRISES: CRISIL Suspends B+ Rating on INR135MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Regency Enterprises (RE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 135 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by RE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RE is yet to provide adequate information to enable CRISIL to assess RE'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. RE is a partnership firm incorporated in April 1, 2013 and is involved in the retailing of country made liquor and foreign liquor. The firm has 6 retail outlets located in Chhattisgarh. The business operations are managed by Regency Vinimay Pvt Ltd, which is also the partner with the majority capital contribution in the firm. RBBR INFRASTRUCTURE: ICRA Assigns 'B' Rating to INR8.66cr Loan -------------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B to the INR8.66 crore term loan, INR1.75 crore non-fund based, INR3.00 crore fund- based and INR2.00 crore sub-limit of fund-based facility of RBBR Infrastructure Private Limited. ICRA has also assigned a short- term rating of [ICRA]A4 to the INR0.50 crore non-fund based limits of RIPL. ICRA has also assigned ratings of [ICRA]B/[ICRA]A4 to the INR1.09 crore unallocated long-term/short-term bank facilities of RIPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund Based- Term Loan 8.66 [ICRA]B assigned Long-term fund based Cash Credit 3.00 [ICRA]B assigned Long-term Interchangeable (2.00) [ICRA]B assigned Long-term non- fund based BG 1.75 [ICRA]B assigned Short-term non- fund based LC 0.50 [ICRA]A4 assigned Unallocated 1.09 [ICRA]B/[ICRA]A4 assigned The assigned ratings draw comfort from the company's established relationship with major customers and its superior production technology, which in turn leads to better quality products and improved production capability giving a competitive edge to the company. Nonetheless, the ratings are constrained by the weak financial profile characterized by low profitability, adverse capital structure and weak coverage indicators. The ratings also take into account the high inventory levels which expose the company to risks of price volatility and inventory losses, the company's modest scale of operation and its exposure to weakness and seasonal demand in the infrastructure industry. RBBR Infrastructure Private Limited (RIPL) is a part of Daga Group, which has interests in mining and mineral processing, imports, exports, real estate, infrastructure and power. Promoted by Mr. Madhusudan L Daga and his family, the company was incorporated in 1996 and is involved in manufacturing of pre-cast reinforced cement concrete (RCC) products from its plant in Hosur (Tamil Nadu). Recent Results As per the audited results for FY2015, RIPL reported profit after tax (PAT) INR0.05 crore on an operating income of INR9.09 crore as against net losses of INR0.10 crore on an operating income of INR5.54 crore during the previous financial year. RIO CERAMIC: CRISIL Reaffirms B Rating on INR55MM Term Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Rio Ceramic Private Limited (RCPL) continue to reflect modest scale of operations in the intensely competitive ceramics industry, and large working capital requirement. These weaknesses are partially offset by promoters' extensive industry experience, and proximity of manufacturing facilities to sources of raw material and labour. Outlook: Stable Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 13 CRISIL A4 (Reaffirmed) Cash Credit 27.5 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 29.5 CRISIL B/Stable (Reaffirmed) Term Loan 55 CRISIL B/Stable (Reaffirmed) CRISIL believes RCPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of more-than-expected sales and stable profitability, leading to higher-than-expected cash accrual. Conversely, the outlook may be revised to 'Negative' if accrual is low because of limited orders or subdued profitability, or if financial risk profile weakens because of stretch in working capital cycle or large debt-funded capital expenditure. Update RCPL commercial operations commenced in April 2015, and registered net sales of INR53.8 million for the seven months through October 2015. Because of moderate order book, net sales are expected to remain small at INR150-180 million in 2015-16 (refers to financial year, April 1 to March 31). Operating profitability is expected to be moderate, at 11-12 per cent. Operations are expected to remain working capital-intensive reflected in expected gross current assets of 110-120 days because of large raw material inventory. Bank limit utilisation averaged 58 per cent over the seven months through October 2015. RCPL's financial risk profile is expected to remain below average because of high gearing on account of recently concluded debt- funded capital expenditure, and subdued debt protection metrics. RCPL, incorporated in 2014 and promoted by Morbi (Gujarat)-based Mr. Ashokbhai Rupala and Mr. Shamjibhai Patel, manufactures wall tiles at its facilities in Morbi. RISING EDUCATION: CRISIL Suspends 'D' Rating on INR250MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Rising Education Society (RES). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 250 CRISIL D The suspension of rating is on account of non-cooperation by RES with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RES is yet to provide adequate information to enable CRISIL to assess RES'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' RES was set up in January 2004 by Mr. Radhey Shyam Gupta to provide quality education in Faridabad (Haryana). RES operates one school in Faridabad as a franchise of GD Goenka Public School. SHREE DEV: CRISIL Reaffirms B- Rating on INR70M Channel Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of Shree Dev Wheels Pvt Ltd (SDW) continues to reflect the company's below- average financial risk profile because of high total outside liabilities to tangible net worth ratio and susceptibility to risk arising from cyclicality in the automobile industry. These weaknesses are mitigated by the promoters' extensive experience. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Channel Financing 70 CRISIL B-/Stable (Reaffirmed) Long Term Loan 25.8 CRISIL B-/Stable (Reaffirmed) CRISIL had assigned its 'CRISIL B-/Stable' rating to the long-term bank facilities of SDW on November 30, 2015. Outlook: Stable CRISIL believes SDW will benefit over the medium term from its association with Tata Motors Ltd (TML; rated 'CRISIL AA/Stable/CRISIL A1+') supported by promoters' experience. The outlook may be revised to 'Positive' if higher-than-expected increase in revenue and operating profitability with efficient working capital management improves liquidity. Conversely, the outlook may be revised to 'Negative' if lower-than-expected accrual or any debt-funded capital expenditure plan weakens the financial risk profile Uttar Pradesh-based SDW, established in 2008-09 (refers to financial year, April 1 to March 31), is an automotive dealer for passenger vehicles of TML. The company is promoted by Mr. Yogesh Pratap Singh and Mr. Gaurav Pratap Singh. SIKSHA-O-ANUSANDHAN: ICRA Reaffirms B+ Rating on INR80cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating at [ICRA]B+ for the INR80 crore1 term loans of Siksha-O-Anusandhan. The short-term rating of [ICRA]A4 assigned to the unallocated limit of INR4 crore of SOA has been reassigned as [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loans 80.0 Reaffirmed at [ICRA]B+ The reaffirmation of the rating takes into consideration the significant decline in SOA's profitability and return indicators during FY14 and FY15 on the back of significant increase in operating costs and its large debt funded capital expenditure plans going forward, which could impact cash flows in the near term. The rating take into account the large number of courses offered and the deemed university status granted to SOA University, which provides it with operational flexibility and the accreditation from National Assessment and Accreditation Council (an autonomous body, established by the University Grants Commission) at the highest grade of A (on a scale of A to D) demonstrating the university's academic capability. Also, the ratings take note of SOA's favourable financial risk profile characterised by a conservative capital structure and modest debt coverage indicators. Going forward, the ability of the society to maintain its favourable financial risk profile in the light of continuous capital expenditure plans would remain a key rating sensitivity. SOA was established in 1995 as a society in Bhubaneswar, Orissa and manages SOA University (deemed University). SOA University offers under and post graduate courses across different disciplines like engineering, medicine, law, management and also manages a 750 bed hospital. Currently, it has strength of more than 12,000 students. Recent Results During FY15, SOA reported a net surplus (NS) of Rs1.85 crore on revenue receipts of INR246.28 crore, as against a net surplus of INR6.71 crore on revenue receipts of INR215.78 crore during FY14. SINTERCOM INDIA: CRISIL Suspends B+ Rating on INR270MM LT Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sintercom India Private Limited (SIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 Bill Discounting 60 CRISIL A4 Cash Credit 100 CRISIL B+/Stable Letter of Credit 20 CRISIL A4 Long Term Loan 270 CRISIL B+/Stable Packing Credit 20 CRISIL A4 The suspension of ratings is on account of non-cooperation by SIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SIPL is yet to provide adequate information to enable CRISIL to assess SIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid ratings in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' SIPL (previously, Maxtech Sintered Products Pvt Ltd), set up in 2007, manufactures automotive components using sintering technology (powder metal technology). It has a manufacturing plant at Malval in Pune (Maharashtra), with compaction presses of capacities of 450 tonnes, 70 tonnes, and 100 tonnes and furnace capacity of 1200 tonnes. The company commenced commercial production in June 2009. SREE ANJANEYA: CRISIL Cuts Rating on INR282.5MM LT Loan to D ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of Sree Anjaneya Medical Trust (SAMT) to 'CRISIL D/CRISIL D' from 'CRISIL BB/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 125 CRISIL D (Downgraded from 'CRISIL A4+') Long Term Loan 282.5 CRISIL D (Downgraded from 'CRISIL BB/Stable') The downgrade reflects instances of delay by SAMT in servicing its term debt because of weak liquidity arising from cash flow mismatch. SAMT is susceptibility to regulatory restrictions in the medical education segment and its financial risk profile is weak marked by subdued debt protection metrics. However these weaknesses are partially offset by SAMT's established regional presence supported by the prompter's extensive industry experience. Established in Kerala in 2005, SAMT is a charitable trust constituted under the Indian Trust Act. It commenced operations in 2010. SAMT manages a multi-specialty hospital and operates an educational institute, Malabar Medical College and Research Hospital. SWIFT FABRICS: CRISIL Suspends 'D' Rating on INR47.4MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Swift Fabrics Private Limited (SFPL; previously known as Suift Dealers Pvt Ltd). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.2 CRISIL D Cash Credit 40 CRISIL D Export Bill 20 CRISIL D Purchase Discounting Letter of Credit 5 CRISIL D Term Loan 0.9 CRISIL D Working Capital Demand Loan 47.4 CRISIL D The suspension of ratings is on account of non-cooperation by SFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SFPL is yet to provide adequate information to enable CRISIL to assess SFPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 2004 by Mr. Maheshkumar Nangalia, SFPL processes cotton and synthetic yarn into grey fabric and also manufactures furnishings and women's garments. The company's day-to-day operations are managed by Mr. Manish Nangalia, son of Mr. Maheshkumar Nangalia. SFPL has its manufacturing unit in Surat (Gujarat). TRIVENI ELECTROPLAST: CRISIL Suspends B Rating on INR70MM Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Triveni Electroplast Private Limited (TEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable Letter of credit & Bank Guarantee 50 CRISIL A4 Term Loan 50 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by TEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TEPL is yet to provide adequate information to enable CRISIL to assess TEPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' TEPL was set up in 1991 by Mr. Dinesh Kundra, his brother, Mr. Rajesh Kundra, and their wives. The company manufactures electrical equipment such as wires, cables, jacks, radiators, connectors, and modems. VIJAYASRI ENTERPRISES: CRISIL Assigns B+ Rating to INR100MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Vijayasri Enterprises (VE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Cash Credit Limit 100 CRISIL B+/Stable Proposed Letter of Credit 100 CRISIL A4 The ratings reflect VEs' susceptibility to volatility in raw material prices, modest scale of operations and working capital intensity in operations. These rating weaknesses are mitigated by the promoters' extensive experience in the timber industry. Outlook: Stable CRISIL believes VE will continue to benefit over the medium term from its promoters' extensive industry experience and established customer relationship. The outlook may be revised to 'Positive' if the scale of operations and operating profitability increase significantly, on a sustained basis, leading to an improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' if the financial risk profile weakens due to declined revenue or operating profitability, or in case of a larger-than- expected, debt-funded capital expenditure plan or if the promoters withdraw capital from the partnership entity. Set up in 2012 at Hyderabad, VE, a partnership firm that trades in timber and is promoted by Mr. Yogesh Patel and his wife. WELLWISHER TREXIM: CRISIL Suspends B Rating on INR116.5MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Wellwisher Trexim Private Limited (WTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B/Stable Proposed Long Term Bank Loan Facility 63.5 CRISIL B/Stable Term Loan 116.5 CRISIL B/Stable The suspension of rating is on account of non-cooperation by WTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, WTPL is yet to provide adequate information to enable CRISIL to assess WTPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' WTPL promoted by Agarwala family commenced its operations in 2008. The company initially started with trading in various printed, dyed and embroidery fabrics, wherein the company procured grey fabric and used to get the processing done on job work basis. In 2013, WTPL acquired a yarn and fabrics dyeing and processing unit at Vapi. The day to day operations of the company are managed by Mr. Brahmanand Agarwala along with his sons Mr. Piyush Agarwala and Mr. Sameer Agarwala. =============== M A L A Y S I A =============== NAKAMICHI CORP: Auditor Casts Going Concern Doubt ------------------------------------------------- The Star reports that the opening balances of Nakamichi Corp Bhd may contain material misstatements that affect its financial performance, cash flows, and financial position for the financial year ended Dec 31, 2014 (FY14), according to external auditor PKF. According to the Star, the timber company on Jan. 4 submitted to Bursa Malaysia its annual financial statements for FY14, which showed significant improvement for FY14 to a group loss of MYR258,851 from a loss of MYR30.41mil in the preceding year. However, PKF noted that Nakamichi's directors had not been able to obtain the financial information of 51% owned subsidiaries Tamabina Sdn Bhd (involved in log extraction and timber sale business) and Faktor Juta Sdn Bhd (now dormant), the Star relates. The Star says Tamabina's sole executive director was Nakamichi's former CEO Lo Man Heng, who was removed as Nakamichi CEO in July 2013 after he declined the company's request for a majority or equal representation by the company on Tamabina's board. Nakamichi's directors have also been unable to get the financial information on Tamabina and Faktor Juta from Jan 1 to July 29, 2013 for the purpose of consolidation, the report says. "We were therefore unable to determine the effect of consolidation adjustment(s) if any to the financial performance and cash flows of the group for the financial year ended Dec 31, 2013," the Star quotes PKF as saying. "In view of the above, we were unable to satisfy ourselves that the opening balances do not contain misstatements that may materially affect the financial performance, cash flows, and financial position of the group and the company for the financial year ended Dec 31, 2014." The Star adds that the audit firm, which does not seek a reappointment as auditor, said it therefore could not decide whether adjustments were necessary for FY14. According to the report, PKF also did not express an audit opinion for Nakamichi's financial statements for the year ended Dec 31, 2013 (FY13), which were submitted last week, as it could not verify certain transactions and account balances. The Star notes that Nakamichi had said its current directors did not have all accounting records and financial information of the group prior to May 31, 2013. The records, it said, were not made available to them by the former management. The trading of Nakamichi's shares on Bursa Malaysia has been suspended from Sept 9, 2013, due to the failure to provide its quarterly report for the period ended June 30, 2013, the Star notes. The Star says PKF reiterated in the latest financial statements that there was a possibility that Nakamichi would not be able to continue as a going concern. "We draw attention to Note 1(c) to the financial statements, which discloses that the financial statements are prepared on the going concern basis which contemplates the realisation of assets and settlement of liabilities in the normal course of business. However, as at the reporting date, . . . the group and the company registered a deficit in shareholders' funds of MYR13.85 million and MYR13.47 million and net current liabilities of MYR13.85 million and MYR13.47 million," the auditor, as cited by the Star, said. Together with its net loss for FY14, PKF said, there was material uncertainty that cast significant doubt on the group's and the company's ability to continue as going concerns, adds The Star. The Nakamichi group triggered the criteria of Practice Note No 17 (PN17) on April 29, 2015, after TSB was wound up by the High Court of Sabah and Sarawak via a draft order, according to the Star. ********* 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 2016. 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 ***