/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160108.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 Friday, January 8, 2016, Vol. 19, No. 5 Headlines A U S T R A L I A COUDERT BROTHERS: 2nd Circuit Again Revives $85M Statek's Claim DENHAM CONSTRUCTIONS: First Creditors' Meeting Set For Jan. 15 DICK SMITH: Customers Lose Out After Firm Goes Into Receivership LAURA ASHLEY: Placed Into Voluntary Administration MAC 1: First Creditors' Meeting Set For Jan. 14 STREAM GROUP: Placed Into Administration C H I N A CHINA: May Have 'Hard Landing' Amid Credit Bubble, Faber Says CHINA: Shipping Bankruptcies to Rise as Dry-Bulk Rates Plunge I N D I A AGGARWAL AUTOMOTIVE: CRISIL Rates INR190MM Loan at B+ AMBIKA OVERSEAS: ICRA Reaffirms 'B' Rating on INR17cr Loan APOLLO ZIPPER: CARE Lowers Rating on INR135cr LT Loan to D ASR INDUSTRIES: CRISIL Assigns 'B+' Rating to INR69.9MM Cash Loan ASTON CERAMIC: CRISIL Reaffirms 'B' Rating on INR35MM Cash Loan ATLAS CYCLES: ICRA Reaffirms B Rating on INR48cr LT Loan BHAGWATI SPONGE: CRISIL Suspends B+ Rating on INR195MM Loan BIRTHPLACE HEALTHCARE: CRISIL Cuts Rating on INR118.2MM Loan to C C. SURESH: CRISIL Suspends 'B' Rating on INR50MM Cash Credit CICB - CHEMICON: CRISIL Reaffirms 'D' Rating on INR454.8MM Loan CITY'S KITCHEN: ICRA Assigns 'D' Rating to INR2.55cr Term Loan CLASSIC CORRUGATIONS: ICRA Assigns 'B' Rating to INR6.11cr Loan DINCO 4: CRISIL Assigns 'B' Rating to INR60MM e-DFS G. P. TIMBER: CRISIL Assigns 'B' Rating to INR30MM Cash Loan GLOBUS LIFESTYLE: ICRA Lowers Rating on INR12cr Loan to D HERALD MARINE: CRISIL Ups Rating on INR35MM Term Loan to B+ IFMR CAPITAL: ICRA Assigns B-(SO) Rating to PTC Series A2 JAYSHREE TOOLS: ICRA Suspends 'D' Rating on INR3cr Cash Loan JUMBO BAG: CRISIL Reaffirms B+ Rating on INR267.5MM Cash Loan K.R. PADMANABHAN: CRISIL Reaffirms B Rating on INR55MM Cash Loan K.T. MATHEW: CRISIL Assigns 'B' Rating to INR40MM Cash Loan KALOL STEEL: ICRA Reaffirms B+ Rating on INR4.0cr Cash Loan KAPIL ENTERPRISES: Ind-Ra Assigns B+ Long-Term Issuer Rating KESHAR SAFETY: ICRA Suspends 'D' Rating on INR7cr Term Loan MAGNIFICO CRAFTS: CRISIL Suspends B+ Rating on INR86.5MM Loan MAHADEB RICE: CRISIL Suspends 'B' Rating on INR37.5MM Term Loan MALHATI TEA: ICRA Assigns B- Rating to INR6.46cr Unallocated Loan MAYFLOWER HOTELS: CRISIL Assigns 'B' Rating to INR100MM Term Loan MITTAL RICE: ICRA Reaffirms 'B' Rating on INR6cr LT Loan MOYALAN AGRO: CRISIL Assigns 'B+' Rating to INR10MM LT Loan MUKTSAR COTTON: ICRA Reaffirms 'B' Rating on INR10cr LT Loan NARAYAN COLD: CRISIL Suspends B Rating on INR50MM Cash Loan NOBLE MOULDS: CRISIL Ups Rating on INR140MM Loan to 'B+' PASWARA PAPERS: ICRA Lowers Rating on INR8.50cr Loan to B+ PONGALUR PIONEER: ICRA Suspends B-/A4 Rating on INR30cr Loan PONMANI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR57.5MM Loan PRANI AUTO: ICRA Reaffirms B+ Rating on INR17.40cr LT Loan PURE PHARMA: CRISIL Suspends 'B' Rating on INR64MM Cash Loan RAJHANSMETALS PRIVATE: CARE Ups Rating on INR25.27cr Loan to B+ RAJNI EXPORTS: CRISIL Reaffirms B+ Rating on INR100MM Cash Loan RATANPUR LAND: CRISIL Suspends B+ Rating on INR36MM Term Loan SAMRA INDUSTRIES: CRISIL Assigns 'B' Rating to INR70MM Cash Loan SANDEEP RICE: ICRA Reaffirms 'B' Rating on INR10cr LT Loan SANKAR PRASAD: CRISIL Suspends 'B+' Rating on INR75MM Cash Loan SARADAMBIKA POWER: CRISIL Assigns 'B' Rating to INR50MM Loan SFS GLOBAL: ICRA Suspends B+ Rating on INR17cr Bank Loan SHAKTI CABLES: ICRA Assigns B- Rating to INR1.75cr Loan SHIVAM COTTON: ICRA Reaffirms B Rating on INR8.0cr Cash Loan SHREE AMBIKA: ICRA Cuts Rating on INR254cr Fund Based Loan to D SHREE SAIBABA: CRISIL Reaffirms D Rating on INR88MM Term Loan SHRI BALAJI: ICRA Reaffirms 'D' Rating on INR8.21cr Term Loan SHRINATHJI SPINTEX: ICRA Lowers Rating on INR12.20cr Loan to D STANDARD AUTOGEARS: CRISIL Cuts Rating on INR37.5MM Loan to D TALIN INT'L: CARE Reaffirms B+/A4 Rating on INR6.25cr Loan UDAY VIJAY: CRISIL Suspends 'B+' Rating on INR52MM Cash Loan V.K.GOPAL: ICRA Reaffirms 'B' Rating on INR7.50cr LT Loan VASHU YARN: ICRA Suspends B Rating on INR6.05cr Term Loan VENKATESHWARA COTTON: CARE Ups Rating on INR8.34cr Loan to BB- VIRTUAL GALAXY: ICRA Cuts Rating on INR16.52cr Loan to 'D' YOUNG BRAND: Ind-Ra Affirms BB+ Long-Term Issuer Rating M A L A Y S I A 1MALAYSIA: Confusion Over Valuation Casts Doubt on Restructuring T A I W A N GIGAMEDIA LTD: Regains NASDAQ Minimum Bid Price Rule - - - - - ================= A U S T R A L I A ================= COUDERT BROTHERS: 2nd Circuit Again Revives $85M Statek's Claim --------------------------------------------------------------- Pete Brush at Bankruptcy Law360 reported that the Second Circuit has breathed new life into Statek Corp.'s Chapter 11 claim against the remains of Coudert Brothers LLP stemming from its $85 million malpractice suit lodged against the now-defunct law firm, finding that its initial order directing a bankruptcy judge to revive the claim was improperly brushed aside. A three-judge panel on Dec. 29 reinstated the quartz crystal maker's bid to recover from Coudert bankruptcy plan administrator Development Specialists Inc. The Second Circuit first revived Statek's claim in 2012. About Coudert Brothers Coudert Brothers LLP was an international law firm specializing in complex cross-border transactions and dispute resolution. The firm had operations in Australia and China. Coudert filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 06-12226) on Sept. 22, 2006. John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represented the Debtor in its restructuring efforts. Brian F. Moore, Esq., and David J. Adler, Esq., at McCarter & English, LLP, represented the Official Committee of Unsecured Creditors. Coudert scheduled total assets of $30.0 million and total debts of $18.3 million as of the Petition Date. The Bankruptcy Court in August 2008 signed an order confirming Coudert's chapter 11 plan. The Plan contemplated on paying 39% to unsecured creditors with $26 million in claims. Coudert has been succeeded by Development Specialists, Inc. in its capacity as Plan Administrator under the confirmed chapter 11 plan. DENHAM CONSTRUCTIONS: First Creditors' Meeting Set For Jan. 15 -------------------------------------------------------------- Gavin Moss of Chifley Advisory Pty Ltd was appointed as administrator of Denham Constructions Project Company 950 Pty Ltd on Jan. 5, 2016. A first meeting of the creditors of the Company will be held at The Boardroom of Servcorp, Level 56, MLC Centre, 19-29 Martin Place, in Sydney, on Jan. 15, 2016, at 3:00 p.m. DICK SMITH: Customers Lose Out After Firm Goes Into Receivership ---------------------------------------------------------------- nz.finance.yahoo.com reports that consumers who got a Dick Smith gift voucher in their Christmas stocking might have to write it off. The electronic chain has been plagued with financial problems, but has continued selling vouchers to prevent those problems becoming worse, according to nz.finance.yahoo.com. Now receivers have stepped in, and are refusing to refund deposits or honor gift vouchers, the report notes. Consumer New Zealand Chief Executive Sue Chetwin said because customers are unsecured creditors, they aren't likely to get their money back, the report discloses. "It's really unfair for consumers who have bought these vouchers, they are basically cash -- also for people who've paid deposit," the report says. But Ms. Chetwin is advising people to keep their vouchers and register with creditors just in case, the report relays. "There may be a chance if Dick Smith is sold or is able to trade out of its difficulties that down the track they might be honored, it's probably worth hanging onto them," the report quoted Ms. Chetwin as saying. About Dick Smith 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. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 6, 2016, 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. LAURA ASHLEY: Placed Into Voluntary Administration -------------------------------------------------- Broede Carmody at SmartCompany reports that Laura Ashley Australia has collapsed into voluntary administration. External directors were called in on Jan. 7 to manage the business, with Ross Blakeley, Quentin Olde and John Park from FTI Consulting appointed as administrators, SmartCompany says. Laura Ashely was founded in Australia in 1971 and operates 38 stores in Australia and four in New Zealand under a licence agreement from Laura Ashely UK. The appointment of administrators only applies to the retailer's Australian stores, the report relates. Laura Ashley's New Zealand stores and Laura Ashley UK are not affected by the collapse of the Australian business, SmartCompany notes. According to SmartCompany, John Park from FTI Consulting said it is the administrators' intention for the business to continue to trade as normal while an "urgent assessment of the company's financial position is conducted". "While no immediate significant changes to the company's trading operations are anticipated, it will be necessary for the administrators to assess performance and trading of individual stores," Mr. Park said. The first creditors meeting will be held on or before January 19. SmartCompany says the administrators will be calling for expressions of interest immediately. A spokesperson for FTI Consulting said it was too soon to determine what factors led to the administration, adds SmartCompany. Laura Ashley Australia sells fashion, homewares and furniture. Laura Ashley was a Welsh fashion designer who first launched her furnishings business in the 1950s, before expanding into clothing. MAC 1: First Creditors' Meeting Set For Jan. 14 ----------------------------------------------- Joseph David Hayes, Jason Preston, William James Harris, and Matthew Caddy of McGrath Nicol were appointed as administrators of Mac 1 Pty Limited on Jan. 4, 2016. A first meeting of the creditors of the Company will be held at Wesley Conference Centre, 220 Pitt Street, in Sydney, on Jan. 14, 2016, at 10:00 a.m. STREAM GROUP: Placed Into Administration ---------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Stream Group Aust Pty Ltd has been placed into administration. John Park and Kelly- Anne Trenfield of FTI Consulting have been appointed administrators of the company. Dissolve.com.au relates that at least 70 of the company's employees were told about the termination of their positions. Brisbane-based Stream Group Aust Pty Ltd was established in 2007 processing insurance claims after disasters. In its last annual report, the group posted AUD12.8 million loss. ========= C H I N A ========= CHINA: May Have 'Hard Landing' Amid Credit Bubble, Faber Says ------------------------------------------------------------- Natasha Doff and Lorenzo Totaro at Bloomberg News report that the Chinese economy may be headed for a "hard landing" as borrowers are taking on record amounts of debt to repay interest on their existing obligations, said Marc Faber. "We had a hard landing in the stock market already and we had a hard landing in commodities and we might have a hard landing in the economy," Faber, the publisher of the Gloom, Boom & Doom Report, said in an interview with Bloomberg Television's Francine Lacqua on Jan. 6. "We have a colossal credit bubble in China." After a 7 percent selloff at the start of the year, China revived intervention to stop some of the world's biggest investors from fleeing its $6.5 trillion stock market. State-controlled funds bought equities on Jan. 5, Bloomberg relates citing people familiar with the matter. The securities regulator signaled a selling ban on major investors will remain in place beyond its scheduled Jan. 8 expiration, they said, Bloomberg relays. "How it will unwind, we don't know," Mr. Faber said, adding that there might be a cut in investments in research and development. "It could also happen through significant weakness in the economy and some sectors of the economy in China, like steel production, they already have experienced hard landing. My sense: I would rather be overly cautious on China than overly optimistic." Bloomberg relates that after reviewing what he sees as the buildup of a global asset bubble, Faber said: "I think that the next thing that will happen is that all the asset markets, like the Titanic, will crash." CHINA: Shipping Bankruptcies to Rise as Dry-Bulk Rates Plunge ------------------------------------------------------------- Brenda Goh at Reuters reports that China's dry-bulk shipping industry will likely see a surge in bankruptcies this year as freight rates hit record lows and the country's demand for imports wanes, consultancy Shanghai International Shipping Institute (SISI) said. Reuters relates that a number of firms have already gone bust over the past year as the industry grapples with the worst downturn on record due to stalling demand for iron ore and coal from China and a global surplus of vessels. With benchmark freight rates now at an all-time low, finances will be further stretched for shippers. According to Reuters, the SISI said more than 60 percent of the dry-bulk shipping firms it surveyed were struggling with long-term losses, while about 40 percent faced liquidity problems. It said it had spoken to 50 of China's largest dry bulk shipping lines. "The market is extremely depressed and these conditions are likely to continue in 2016, exacerbating dry bulk firms' losses, increasing costs and creating obstacles to obtaining financing. This will kick-start a wave of bankruptcies," state-backed SISI said in a report published on Jan. 5, Reuters relays. Reuters notes that among the Chinese firms that have already gone bust are dry cargo shipper Winland Ocean Shipping Corp, which filed for bankruptcy protection in February last year, and state- owned shipbuilder Wuzhou Ship Repairing & Building Co Ltd, which filed for bankruptcy last month. In a move to improve the competitiveness of its state-owned shipping giants, Beijing last month approved a merger between China Ocean Shipping (Group) Co and China Shipping Group that will see them shuffle assets between their listed units, the report relays. But the outlook for the sector looks gloomy with the Baltic Dry Index plumbing a record low of 468 points on Jan. 5, says the report. The index has dropped around 80 percent from a high in 2014 and 96 percent from its 2008 peak. Reuters relates that the SISI said that more than 60 percent of the survey respondents did not expect the Baltic Dry Index to climb above 800 points. It was last at this level in October 2015. The chance of a recovery in the index is slim as prices of the main products shippers carry remain near multi-year lows, Reuters notes. Thermal coal futures are near 12-1/2 year lows, down more than 80 percent from their peak in 2008, while iron ore prices .IO62- CNI=SI are close to record lows, according to Reuters. Reuters says prices for these commodities are not expected to rise anytime soon as China's industrial rise and appetite for raw materials slows. The report relates that reflecting the overall bearish sentiment, a global index measuring the confidence of logistic companies fell in December to its lowest level since March 2012. The SISI, which also surveyed container shipping, ports and shipping services firms, said business sentiment across these sectors had also slumped, adds Reuters. ========= I N D I A ========= AGGARWAL AUTOMOTIVE: CRISIL Rates INR190MM Loan at B+ ----------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Aggarwal Automotive Pvt Ltd (AAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Inventory Funding Facility 190 CRISIL B+/Stable The rating reflects AAPL's average financial risk profile because of high total outside liabilities to tangible net worth ratio, low pricing power with its principal, Hyundai Motor India Ltd (HMIL; rated CRISIL A1+), and susceptibility to intense competition in the automobile dealership market. These weaknesses are mitigated by the established position in automobile market for HMIL and AAPL's efficient working capital management. Outlook: Stable CRISIL believes AAPL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if scale of operations and operating margin improve substantially or if a sizeable equity infusion strengthens capital structure while prudently managing working capital requirement. Conversely, the outlook may be revised to 'Negative' if market share reduces, thereby significantly impacting revenue and profitability or if any large, debt-funded capex or stretched working capital requirement weakens liquidity. AAPL was incorporated in 2014 by the Delhi-based Bansal family. AAPL runs a HMIL dealership in Delhi. AAPL has two sales showrooms along with one service and spares workshop. Mr. Harsh V Bansal is the director in the company, actively managing the company's operations. AAPL is a part of the Unity group based in Delhi, having extensive presence in the commercial real estate sector. It started operations in February 2015. Net loss of INR0.2 million was reported on net sales of INR90 million in 2014-15 (refers to financial year, April 1 to March 31). AMBIKA OVERSEAS: ICRA Reaffirms 'B' Rating on INR17cr Loan ---------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B rating on the INR17 crore (enhanced from INR15.00 crore) bank facilities of Ambika Overseas. ICRA has also assigned its short term rating of [ICRA]A4 to the INR1.00 crore bank facilities of AOS. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limit 17.00 [ICRA]B; Reaffirmed Short Term Non Fund Based Limits 1.00 [ICRA]A4; Assigned ICRA's ratings take into account the year-on-year decline in AOS' revenues in FY15, on account of the slowdown in the demand for its products in domestic markets. Further, the ratings continue to take into account the firm's modest financial profile as reflected in modest profitability and debt protection indicators. The operations of AOS' are highly working capital intensive owing to high inventory and receivable days, impacting liquidity. Further, ICRA also takes note of the vulnerability of AOS' profitability to fluctuations in exchange rates, given that about half of its revenues are derived from exports. ICRA also takes note of the entity's status as a partnership firm exposing it to risks of capital withdrawal, dissolution etc. ICRA however, favorably factors in the extensive experience of the promoters and the firm's well diversified sales mix, due to its even dependence on domestic and export markets. The ability of the firm to register a sustained improvement in its sales and profit margins, along with attaining optimal working capital intensity, will be key rating sensitivities. Incorporated in 1999, AOS manufactures hand tools like spanners, plumbing tools, pliers, punches, hammers etc and sells them under its brand name 'Ambika'. The firm's plant at Jalandhar, Punjab, has a manufacturing capacity of about 2,500 metric tonnes per annum (MTPA). Recent Results AOS reported a net profit of INR1.21 crore on an operating income of INR35.08 crore in FY15, as against a net profit of INR1.28 crore on an operating income of INR39.51 crore in the previous year. APOLLO ZIPPER: CARE Lowers Rating on INR135cr LT Loan to D ---------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Apollo Zipper India Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 135 CARE D Revised from CARE BBB- (SO) Long-term Bank Facilities 25 CARE D Revised from CARE BBB- (SO) Rating Rationale The revision in the ratings assigned to the bank facilities of Apollo Zipper India Ltd takes into consideration the on-going delays in debt servicing on account of liquidity mismatches. The rating also factors in the downgrade of Bharat Hotels Ltd (BHL) to CARE D on account of on-going delays in BHL. Apollo Zipper India Ltd (AZIL) is a subsidiary of Bharat Hotel Ltd (BHL) with BHL holding 90% stake and 10% stake held by West Bengal Government. AZIL has developed a 244 rooms 5 star hotel in Kolkatta under the brand name of 'Lalit'. AZIL has commenced commercial operations from Q4FY14. ASR INDUSTRIES: CRISIL Assigns 'B+' Rating to INR69.9MM Cash Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of ASR Industries (ASR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 10.1 CRISIL B+/Stable Open Cash Credit 69.9 CRISIL B+/Stable The rating reflects ASR's modest scale of, and working capital- intensive, operations in the fragmented rice industry, below- average financial risk profile because of high gearing, weak debt protection metrics, and small networth, and susceptibility of its operating profitability to volatility in raw material prices. These weaknesses are partially offset by the promoters' extensive experience in the rice milling industry and established relationship with customers and suppliers. Outlook: Stable CRISIL believes ASR will continue to benefit over the medium term from promoters' extensive industry experience. The outlook may be revised to 'Positive' if revenue and profitability increase substantially, leading to better financial risk profile, or if partners infuse significant capital, resulting in improved capital structure. Conversely, the outlook may be revised to 'Negative' if the firm undertakes aggressive, debt-funded expansions, or if revenue and profitability decline sharply, or if partners withdraw large capital, leading to deterioration in financial risk profile. Established as a partnership firm by Mr. G Srinivas and Mr. G Manikumar in 2009 in Nalgonda, Telangana, ASR mills and processes paddy into rice, rice bran, and husk. ASR reported a profit after tax (PAT) of INR3 million on net sales of INR238 million in 2014-15 (refers to financial year, April 1 to March 31), against a PAT of INR3 million on net sales of INR161 million for 2013-14. ASTON CERAMIC: CRISIL Reaffirms 'B' Rating on INR35MM Cash Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Aston Ceramic (AC) continue to reflect the firm's start-up phase and modest scale of operations in the highly competitive ceramic industry, and large working capital requirement. These weaknesses are partially offset by partners' extensive industry experience, and proximity of manufacturing facilities to sources of cheap raw material and labour. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 14 CRISIL A4 (Reaffirmed) Cash Credit 35 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 16 CRISIL B/Stable (Reaffirmed) Term Loan 35 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes AC will continue to benefit over the medium term from its partner's extensive industry experience. The outlook may be revised to 'Positive' in case of higher-than-expected accrual driven by significant increase in revenue, and better financial risk profile, including liquidity. Conversely, the outlook may be revised to 'Negative' if financial risk profile, particularly liquidity, deteriorates because of lower-than-expected accrual or lengthening of working capital cycle or large debt-funded capital expenditure (capex). Update AC commenced operations in March 2015 and recorded revenue of INR52 million and operating margin of 10.7 per cent in the first half of 2015-16 (refers to financial year, April 1 to March 31). CRISIL expects revenue at INR120 million in 2015-16, and operating margin at 11.5 per cent over the medium term. Cash accrual is expected at INR6.2 million in 2015-16. Gearing is expected to be high, at 2.15 times as on March 31, 2016, because of debt-funded capex. Networth was modest, at INR29 million, as on March 31, 2015. CRISIL believes the firm will sustain its financial risk profile over the medium term in the absence of debt-funded capex plan. Debt protection metrics are expected to be moderate, with interest coverage and net cash accrual to total debt ratios at 1.9 times and 0.10 time, respectively, in 2015-16. The firm is likely to have large working capital requirement, with gross current assets expected at 215 days as on March 31, 2016. Because of start-up phase of operations, working capital limits were utilised moderately, at an average of 62 per cent over the six months through September 2015. The utilisation will increase with ramp-up in operations. Liquidity is supported by unsecured loans of INR20 million from partners as on September 30, 2015. Accrual will be sufficient to meet debt obligation of INR3.1 million in 2015-16. AC, a Morbi (Gujarat)-based partnership firm set up in 2014, manufactures digital wall tiles, and has installed capacity of 24,375 tonne per annum. The partners have been involved in the ceramic industry for about 10 years through associate concerns. ATLAS CYCLES: ICRA Reaffirms B Rating on INR48cr LT Loan -------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B and short term rating of [ICRA]A4 on the INR84.55 crore bank lines of Atlas Cycles (Haryana) Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund Based Limits 48.00 [ICRA]B; Reaffirmed Long Term-Non Fund Based Limits 0.25 [ICRA]B; Reaffirmed Short Term-Non Fund Based Limits 29.50 [ICRA]A4; Reaffirmed Unallocated 6.80 [ICRA]B; Reaffirmed ICRA's rating reaffirmation takes into account the continued weakness in ACL's operating performance in FY15 wherein the company's operating income declined by 8.5% relative to the previous year and net loss increased to INR28.0 crore, from net loss of INR10.1 crore in FY14. A significant portion of the company's loss can be attributed to the Malanpur unit, which ceased production in FY15. This also impacted the operating performance of other manufacturing units resulting in lower capacity utilisation. The financial risk profile of the company remains weak, though the net losses during H1 FY16 have come down relatively, due to the closure of Malanpur unit and improved production in other units. ICRA's ratings continue to take note of ACL's long track record of operations and its established brand, Atlas. While the industry's recent performance has been subdued, however, the prospects for the domestic bicycle industry remain healthy with scope for further penetration in rural markets, continuing replacement demand, and support from institutional sales backed by state government run programmes. The company however faces significant competition from well-entrenched players, as well as Chinese imports in the growing fancy bicycles segment. The company's ability to increase its sales volumes and improve profitability while bringing about a sustained improvement in its liquidity position will remain the key rating sensitivities. ACL was started by Mr Janki Das Kapur in 1950. The company started with manufacturing bicycle saddles in 1951 and bicycles in 1952. Currently the company is one of the top bicycle manufacturers in India by virtue of its strong brand. The company was engaged in the manufacture of bicycles with units located at Sonepat (Haryana), Sahibabad (Uttar Pradesh) and Malanpur (Madhya Pradesh), besides a steel tube manufacturing unit at Bawal (Haryana). As part of a family settlement, Mr. Janki Das Kapur's three sons signed an MoU under which the company was divided into three profit centres, each under the management of one of his sons or their families. In late 2014, however, the Malanpur unit was closed down. The bicycles manufactured by the company range from necessity bicycles to high-end bicycles, including the e-Bike segment. Recent Results The company reported an OI of INR594.59 crore and a net loss of INR28.03 crore for FY15, as against an OI of INR650.11 crore and a net loss of INR10.08 crore for the previous year. As per the unaudited results for 6M FY16, the company reported an OI of INR306.12 crore and a net loss of INR4.27 crore. BHAGWATI SPONGE: CRISIL Suspends B+ Rating on INR195MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bhagwati Sponge Private Limited (BSPL; part of the AIC group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 195 CRISIL B+/Stable Letter of Credit 95 CRISIL A4 Proposed Long Term Bank Loan Facility 4 CRISIL B+/Stable Term Loan 24 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by BSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BSPL is yet to provide adequate information to enable CRISIL to assess BSPL'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'. For arriving at the ratings, CRISIL has combined the business and financial risk profile of BSPL, AIC Steel Pvt Ltd (ASPL), AIC Iron Industries Pvt Ltd (AIIPL), and AIC Casting Pvt Ltd (ACPL), together referred to as the AIC group. This is because there are operational and financial linkages among these companies. ASPL supplies pig iron to the other companies. BSPL manufactures sponge iron, which is the key raw material for the steel ingots/billets manufactured by AIIPL, and hence, results in backward integration. Furthermore, all the companies are under a common management and they extend need-based financial support to each other. The AIC group is involved in trading in and manufacturing steel intermediaries. ASPL trades in pig iron and scrap. BSPL manufactures sponge iron, while AIIPL manufacturers steel ingots. This results in partly integrated operations for the group, as sponge iron is the key raw material for ingot manufacturing. ACPL is engaged in grey iron casting. ACPL's product profile includes gear boxes, electric motor bodies, and manhole covers, among other products. BIRTHPLACE HEALTHCARE: CRISIL Cuts Rating on INR118.2MM Loan to C ----------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facility of Birthplace Healthcare Private Limited (BHPL) to 'CRISIL C' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 118.2 CRISIL C (Downgraded from 'CRISIL B/Stable') Proposed Long Term 21.8 CRISIL C (Downgraded from Bank Loan Facility 'CRISIL B/Stable') The rating downgrade reflects the deterioration in BHPL's liquidity with its depressed cash accruals expected to tightly match its term debt repayment obligations over the medium term. CRISIL believes that the company will need capital infusion from its promoters, or will have to register substantial increase in its profitability levels, to alleviate the pressure on its liquidity. The company's registered cash accruals of INR16 million in 2014-15 (refers to financial year, April 1 to March 31). Though the cash accruals of the company are expected to increase in 2015-16 supported by increase in its occupancy levels, the same are expected to tightly match its term debt repayment obligations of INR19 million maturing in that year. The rating continues to reflect BHPL's below-average financial risk profile because of its small net worth, high gearing, and average debt protection metrics. The rating is also constrained by its limited track record and modest scale of operations, and geographical concentration in the revenue profile. These rating weaknesses are partially offset by the benefits the company derives from its team of experienced doctors, and the healthy demand prospects for the healthcare industry. BHPL was set up in 2011 by Mr. Tarun Siripurapu and his family members. The company provides healthcare in the obstetrics and gynaecology segments, through its 25-bed hospital'The Birthplace. The hospital is located in Hyderabad (Telangana), and commenced operations in 2013. C. SURESH: CRISIL Suspends 'B' Rating on INR50MM Cash Credit ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of C. Suresh Reddy and Co (CSR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 Cash Credit 50 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by CSR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CSR is yet to provide adequate information to enable CRISIL to assess CSR'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, CSR is a Hyderabad-based partnership firm, which undertakes civil construction work for the South Central Railways. The firm's day-to-day operations are managed by its partners, Mr. Sukesh Reddy and Mr. Rameshwar Reddy. CICB - CHEMICON: CRISIL Reaffirms 'D' Rating on INR454.8MM Loan --------------------------------------------------------------- CRISIL's rating on the bank facilities of CICB - Chemicon Private Limited (CICB-Chemicon) continue to reflect CICB-Chemicon's continuously overdrawn cash credit facility; this has been due to the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 80 CRISIL D (Reaffirmed) Cash Credit 30 CRISIL D (Reaffirmed) Letter of Credit 95 CRISIL D (Reaffirmed) Packing Credit 22.5 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 454.8 CRISIL D (Reaffirmed) The ratings also reflect the company's weak financial risk profile, marked by weak debt protection metrics, and its small scale of, and working-capital-intensive, operations, which constrains its operating efficiency. These rating weaknesses are partially offset by the benefits that CICB-Chemicon derives from its technology tie-ups with global players, FS-Elliott Co LLC (USA) and Hangzhou-Chinen Steam Turbine Power Co Ltd (China). CICB-Chemicon, established in 1971 and based in Bengaluru, primarily manufactures engineering goods, including compressors, heat exchangers, and pressure vessels. CITY'S KITCHEN: ICRA Assigns 'D' Rating to INR2.55cr Term Loan -------------------------------------------------------------- ICRA has assigned [ICRA]D rating to the INR5.05 crore long term fund based facility of City's Kitchen. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund based limits- Cash Credit 2.50 [ICRA]D Long term fund based limits- Term Loan 2.55 [ICRA]D The assigned ratings take into account the irregularities in debt servicing by City's Kitchen due to stretched capital structure and elongated working capital cycle leading to tight liquidity condition. In spite of the healthy revenue growth over the years, the scale of operations remains at a modest level. Further, the firm faces high customer concentration and geographic risk as the current operations are limited Pune. The ratings also take into consideration the risks arising from proprietorship nature of business including risk of capital withdrawal. ICRA however has taken note of the long standing experience of the promoters in the catering and hospitality business as well as the healthy revenue growth witnessed by the firm backed by the increasing demand of catering services due to increasing presence of corporate offices in Kharadi - Magarpatta area. Going forward, timely servicing of debt obligations and scaling up of operations to achieve desired revenue levels and accruals will be the key rating sensitivities. Incorporated in the year 2009, the firm is engaged in providing catering services to various corporate, public agencies and educational institutions as well as taking party and wedding orders. The firm is based out of Kharadi, Pune and caters to the various corporate offices in the IT parks in and around the Kharadi - Magarpatta - Viman nagar area. Mr. Srinivas Mekala, the proprietor of the firm has a long standing experience in the catering and hospitality business. CLASSIC CORRUGATIONS: ICRA Assigns 'B' Rating to INR6.11cr Loan --------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B to the INR6.00 crore cash credit facility, INR6.11 crore term loans and INR0.39 crore unallocated limits of Classic Corrugations Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Limit 6.00 [ICRA]B assigned Term Loans 6.11 [ICRA]B assigned Unallocated Limits 0.39 [ICRA]B assigned The assigned rating is constrained by the company's moderate scale of operations, though the same has witnessed healthy growth in FY 15, and its weak financial profile characterized by net losses, low profitability levels and weak coverage indicators. The rating is further constrained by vulnerability of profitability to adverse fluctuations in raw material (kraft paper) prices, though the presence of price variation clause in some contracts mitigates this risk to a certain extent, as well as the highly fragmented nature of the industry which results in intense competitive pressures. The rating, however, takes comfort from the experience of the promoters spanning over 15 years in the packaging industry, its reputed clientele and the locational advantage owing to proximity to kraft paper manufacturers in Morbi and Vapi, ensuring easy accessibility to raw materials. Classic Corrugations Pvt. Ltd. (CCPL) was incorporated in April 2011, and started its commercial operations from July 2013 onwards. The company is engaged in the business of manufacturing kraft paper based corrugated boxes. CCPL has an installed capacity to process ~18000 MTPA of kraft paper at its sole manufacturing facility located in Daskroi area near Ahmedabad, Gujarat. The corrugated boxes are used for packaging purposes and find their application in a wide range of industries including home appliances, food products, liquor, kitchen ware, spare parts, milk products, mobiles manufacturing, confectioneries, pharmaceutical and personal care. CCPL is a closely held entity with the members of the Todi family being the key stakeholders. Recent Results For FY15, CCPL reported an operating income of INR38.17 Cr. and net loss of INR0.09 Cr as against an operating income of INR19.04 crore and net loss of INR0.91 crore for FY 14. For 7M FY16 (unaudited provisional financials), CCPL has reported an operating income of INR24.04 Cr. and profit before depreciation and taxation of INR0.66 Cr. DINCO 4: CRISIL Assigns 'B' Rating to INR60MM e-DFS --------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Dinco 4 Wheels LLP (Dinco). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 15 CRISIL B/Stable Cash Credit 15 CRISIL B/Stable Electronic Dealer Financing Scheme (e-DFS) 60 CRISIL B/Stable The rating reflects Dinco's early stage of operations and short track record in automotive (auto) dealership of Maruti Suzuki India Ltd (MSIL) and weak financial risk profile owing to high gearing. These rating weaknesses are mitigated by the partners' extensive experience in the auto dealership business and healthy demand prospects of the existing and new passenger car models of MSIL. Outlook: Stable CRISIL believes Dinco will benefit from its partners' extensive industry experience and healthy demand prospects of the existing and new passenger car models of MSIL. The outlook may be revised to 'Positive' if scale of operations increases sustainably while efficiently managing cost structure and working capital cycle. Conversely, the outlook may be revised to 'Negative' if financial risk profile deteriorates owing to lower-than-expected profitability or stretched working capital cycle. Dinco, is a partnership firm set up in August 2015 by Mr. Hitesh Kumar Goyal and Mr. Dinesh Kumar Goyal. The firm is an authorised dealer of passenger cars of MSIL in Rewari, Haryana. The firm began operations in October 2015. G. P. TIMBER: CRISIL Assigns 'B' Rating to INR30MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of G. P. Timber (GPT). The ratings reflect the firm's modest scale of operations and large working capital requirement. These weaknesses are partially offset by its promoters' extensive experience in the timber business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable Letter of Credit 70 CRISIL A4 Outlook: Stable CRISIL believes GPT will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if the firm significantly scales up operations while improving working capital management, resulting in better financial risk profile. Conversely, the outlook may be revised to 'Negative' if revenue declines or working capital management deteriorates, resulting in weakening of financial risk profile, especially liquidity. GPT, founded in 1990 by Mr. Premjibhai Ramjibhai Patel, trades in and processes timber. It operates a saw mill in Gandhidham with sawing capacity of 72-80 cubic meter of timber per day. GLOBUS LIFESTYLE: ICRA Lowers Rating on INR12cr Loan to D --------------------------------------------------------- ICRA has revised its ratings on the INR12 crore bank facilities Globus Lifestyle Private Limited to [ICRA]D from the long-term rating of [ICRA]BB. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 12.00 [ICRA]D; revised from [ICRA]BB (Stable) The ratings revision is driven by the delays in debt servicing by GLPL on account of its stretched liquidity position owing to the sluggish demand in the real estate market. ICRA takes note of the the company's dependence on a single project for its entire cash flows and the high regional dependence of the group with most of the past and ongoing projects concentrated in Bhopal. ICRA also takes cognizance of the established track record of the promoters in the real estate market in Bhopal. Going forward, a track record of timely debt servicing and a sustained improvement in the company's liquidity position will be the key rating sensitivities. GLPL was incorporated in June 2011 and is developing a residential project in Bhopal (Madhya Pradesh) under the name Coral Casa which comprises 252 duplex bungalows and 240 multi-storey apartments (10 towers each having Parking+6 floors). The company is presently developing the bungalows which have a total saleable area of 4.27 lac square feet (built up area of 3.71 lac square feet) and the multi-storey apartments would be launched later, the timelines for which have not been finalized yet. The project is being developed on an area of 16 acres, out of which bungalows are being developed on 13 acres and the multi-storey apartments would be developed on 3 acres. HERALD MARINE: CRISIL Ups Rating on INR35MM Term Loan to B+ ----------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Herald Marine Products Pvt Ltd (HMPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable', and reaffirmed its rating on the short-term facility at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8 CRISIL A4 (Reaffirmed) Cash Credit 30 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Proposed Long Term 7 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL B/Stable') Rupee Term Loan 35 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects expected growth in HMPL's business risk profile due to better operating margin and hence, improved liquidity. The rating reflects start-up phase of HMPL's operations, below- average financial risk profile because of small net worth and high gearing, and susceptibility to volatility in raw material prices. These weaknesses are partially offset by promoters' entrepreneurial experience. Outlook: Stable CRISIL believes HMPL will benefit over the medium term from promoters' entrepreneurial experience. The outlook may be revised to 'Positive' if significant improvement in scale of operations and profitability leads to substantial increase in accrual. Conversely, the outlook may be revised to 'Negative' if low cash accrual or stretched working capital cycle weakens liquidity. HMPL was established in 2012 by Mr. Abdul Shukoor and his friends, Mr. Shyamsundar and Mr. Roshan. The company manufactures fish oil and fish meal and commenced production from May 2014. IFMR CAPITAL: ICRA Assigns B-(SO) Rating to PTC Series A2 --------------------------------------------------------- ICRA had assigned Provisional [ICRA]BBB(SO) rating and Provisional [ICRA]B-(SO) rating to proposed PTC A1 and PTC A2 issuance by IFMR Capital Mosec Glaucus 2015 backed by micro loan receivables originated by Intrepid Finance and Leasing Private Limited (Intrepid), Light Microfinance Private Limited (Light), Disha Microfin Private Limited (Disha), Fusion Microfinance Private Limited (Fusion), Pahal Financial Services Private Limited (Pahal) and Saija Finance Private Limited. Initial Transaction Principal Credit Name Description (INR cr) Rating Collateral ----------- ----------- -------- ------- ---------- IFMR Capital PTC Series A1 66.87 [ICRA]BBB(SO) 5.77% Mosec Glaucus PTC Series A2 10.02 [ICRA]B-(SO) 2015 Since the executed transaction documents are in line with the rating conditions and the legal opinion and due diligence audit certificate have been provided to ICRA, the said ratings have now been confirmed as final. JAYSHREE TOOLS: ICRA Suspends 'D' Rating on INR3cr Cash Loan ------------------------------------------------------------ ICRA has suspended [ICRA]D rating assigned to the INR3.00 crore cash credit facility and INR2.00 crore working capital term loan of Jayshree Tools and Assemblies Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. JUMBO BAG: CRISIL Reaffirms B+ Rating on INR267.5MM Cash Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Jumbo Bag Limited (JBL) continues to reflect JBL's subdued operating efficiencies leading to below-average financial risk profile marked by weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 267.5 CRISIL B+/Stable (Reaffirmed) Foreign Bill Discounting 35 CRISIL B+/Stable (Reaffirmed) Letter of Credit 27.5 CRISIL A4 (Reaffirmed) These rating weaknesses are partially offset by the company's established regional market position in the Flexible Intermediate Bulk Containers (FIBC) segment. Outlook: Stable CRISIL believes that JBL will maintain its established position in the FIBC market over the medium term, supported by its established relationships with customers and suppliers. The outlook may be revised to 'Positive' in case of significant improvement in the company's scale of operations and profitability, or substantial equity infusion, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if JBL's accruals decline, or if it undertakes a large debt-funded capital expenditure programme, or if its working capital management deteriorates, resulting in weakening of its financial risk profile. JBL, established in 1990 in Chennai, manufactures FIBCs, also known as jumbo bags. The company is a part of Bliss group and is promoted by Mr. G P N Gupta. JBL reported a net loss of INR38.1 million on operating income of INR937.8 million for 2014-15 (refers to financial year, April 1 to March 31), against net loss of INR22.1 million on operating income of INR912.2 million for 2013-14. K.R. PADMANABHAN: CRISIL Reaffirms B Rating on INR55MM Cash Loan ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of K.R. Padmanabhan and Sons (KRP; part of the KRP group) continue to reflect the KRP group's modest scale of operations and below-average financial risk profile, marked by high external indebtedness. These rating weaknesses are partially offset by the extensive experience of the group's promoters in the rice industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B/Stable (Reaffirmed) For arriving at the rating, CRISIL has combined the business and financial risk profiles of KRP and P. Sri Ramulu (PRS). This is because both the entities, together referred to as the KRP group, are engaged in the same business and have significant financial fungibility. Outlook: Stable CRISIL believes that the KRP group will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the group reports substantial improvement in revenue and margins, while improving its capital structure. Conversely, the outlook may be revised to 'Negative' if the group reports low revenue and margins or if its working capital cycle lengthens, leading to deterioration in its financial risk profile. The KRP group is engaged in rice trading. The group is based in Chennai and is managed by Mr. P Sri Ramulu, Mr. P Damodaran, and Mr. P Venkatesan. K.T. MATHEW: CRISIL Assigns 'B' Rating to INR40MM Cash Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of K.T. Mathew & Co. (KTMC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Working Capital Facility 10 CRISIL B/Stable Bank Guarantee 40 CRISIL A4 Cash Credit 40 CRISIL B/Stable The ratings reflect modest scale of operations, high customer concentration in revenue profile, exposure to intense competition in the civil construction industry, and below-average financial risk profile because of modest networth and weak debt protection metrics. These weaknesses are partially offset by promoters' extensive industry experience. Outlook: Stable CRISIL believes KTMC will continue to benefit over the medium term from its promoters' extensive experience in the civil construction industry. The outlook may be revised to 'Positive' if KTMC scales up operations significantly and improves working capital management, resulting in better liquidity. Conversely, the outlook may be revised to 'Negative' if revenue and profitability decline on account of delays in execution of projects, or if working capital management deteriorates resulting in stretched liquidity, or if the firm undertakes a large debt-funded capital expenditure programme, leading to weakening of financial risk profile. KTMC, set up in 1962, is a partnership firm. It is engaged in civil construction, primarily construction of roads, bridges, and canals, for government entities. It is based in Ernakulam, Kerala and is promoted by Mr. Paul T Mathew. KTMC's profit after tax (PAT) was INR0.6 million on revenue of INR9.7 million for 2014-15 (refers to financial year, April 1 to March 31), against PAT of INR1.7 million on revenue of INR42.5 million for 2013-14. KALOL STEEL: ICRA Reaffirms B+ Rating on INR4.0cr Cash Loan ----------------------------------------------------------- ICRA has reaffirmed an [ICRA]B+ rating to the INR0.56 crore term loan and INR4.00 crore working capital facilities of Kalol Steel & Alloys Private Limited. ICRA has also reaffirmed an [ICRA]A4 rating to INR2.00 crore non fund based facilities of KSAPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Limits 4.00 [ICRA]B+ reaffirmed Term Loan 0.56 [ICRA]B+ reaffirmed ILC/FLC/BG 2.00 [ICRA]A4 reaffirmed The ratings are constrained by KSAPL's stretched financial position characterized by de growth in operations, low profit margins and highly leveraged capital structure on account of high working capital utilization. The ratings also take into account the highly competitive and fragmented nature of the industry with competition from both unorganized and established players and vulnerability of operating profitability to fluctuations in cost of key raw material i.e. steel prices given the company's limited ability pass on the same to its customers. The ratings also takes into account margins exposed to vulnerability in raw material fluctuations and finished goods prices; risk augmented by high inventory holding. The ratings however favorably consider KSAPL's experienced management with long track record in iron and steel business. The rating also favorable considers the operational support from group concern in terms of easy access of raw material at a competitive price. Incorporated in 2010 as a private limited company, Kalol Steel & Alloys Private Limited was promoted by Mr. Satyapal Singhal, Mr Varun Singhal, Mr Pankaj Singhal and Mr. Narinder Bansal and is engaged in the manufacturing of Mild Steel Ingots through Induction furnace route. The company has an installed capacity of 12500 MTPA of ingot manufacturing at its manufacturing unit in Kalol and has registered office in Bhavnagar. Recent Results For the year FY 2015, the company reported an operating income of INR39.28 Cr. (against INR45.76 Cr in FY 2014) and profit after tax of INR0.04 Cr (against INR0.07 Cr in FY2014). KAPIL ENTERPRISES: Ind-Ra Assigns B+ Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Kapil Enterprises Private Limited a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect Kapil Enterprises' small scale of operations and weak credit metrics. In FY15, revenue was INR171.31 mil., gross interest coverage (operating EBITDA/gross interest expense) was 1.51x and net leverage (total Ind-Ra adjusted net debt/operating EBITDA) was 5.85x. The ratings also factor in KEPL's tight liquidity position as evident from its around 105% utilization of working capital limits during the 12 months ended November 2015. The ratings are, however, supported by KEPL's moderate margins of 5.66% in FY15. The ratings are further supported by the over two decades of experience of KEPL's promoters. RATING SENSITIVITIES Positive: Substantial revenue growth along with an improvement in the profitability leading to improved interest coverage could lead to a positive rating action. Negative: A decline in the operating profitability leading to further deterioration in the credit metrics and further stretch on the liquidity will be negative for the ratings. COMPANY PROFILE KEPL is a rubber tyres and agricultural engineering equipment manufacturer having manufacturing plants in Bhiwadi, Neemrana, Kosi and a sales office in New Delhi. KEPL manufactures rubber tyres and a wide variety of agricultural engineering equipment such as tail wheels, leather goods, leather shoe, footwear, uppers, steel rims, hubs, top link, chain links, axle pin. KEPL exports 100% of its products to the US. KEPL's ratings: -- Long-Term Issuer Rating: assigned 'IND B+'/Stable -- INR1.11 mil. term loan: assigned 'IND B+'/Stable -- INR70.00 mil. fund-based working capital limit: assigned 'IND B+'/Stable/'IND A4' KESHAR SAFETY: ICRA Suspends 'D' Rating on INR7cr Term Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR7.00 crore term loan and INR2.00 crore cash credit facility of Keshar Safety Glass. ICRA has also suspended the [ICRA]D rating assigned to the INR3.63 crore import letter of credit, which is a sub-limit of the term loan. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MAGNIFICO CRAFTS: CRISIL Suspends B+ Rating on INR86.5MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Magnifico Crafts Private Limited (MCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 Cash Credit 8 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 53.5 CRISIL B+/Stable Term Loan 86.5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by MCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MCPL is yet to provide adequate information to enable CRISIL to assess MCPL'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'. MCPL was incorporated on July 2011, in Kolkata (West Bengal). The company is promoted by Mr. Ashis Bose, Mr. Arunava Nandan and Mr. Subhamoy Banerjee. MCPL is setting up a plant to manufacture bamboo mat corrugated sheets, bamboo composite panels and other bamboo-based products in Howrah (West Bengal). MAHADEB RICE: CRISIL Suspends 'B' Rating on INR37.5MM Term Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Mahadeb Rice Mill Private Limited (MRML). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL B/Stable Inland/Import Letter of Credit 2 CRISIL A4 Term Loan 37.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by MRML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MRML is yet to provide adequate information to enable CRISIL to assess MRML'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'. MRML, incorporated in 2011, is engaged in milling and processing of paddy into rice; in the process, it also produces by-products such as broken rice, bran, and husk. The company has installed paddy milling capacity of 24,000 tonnes per annum at its facility in Burdwan (West Bengal). MRML is promoted by Mr. Kartik Chandra Ghosh and his associates. MALHATI TEA: ICRA Assigns B- Rating to INR6.46cr Unallocated Loan ----------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B- for the INR0.89 crore term loan facilities, INR2.50 crore fund based facilities, and INR6.46 crore unallocated facilities of Malhati Tea & Industries Limited. ICRA has also assigned a short term rating of [ICRA]A4 to the INR0.15 crore non fund based facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 0.89 [ICRA]B- assigned Unallocated 6.46 [ICRA]B- assigned Fund based limits 2.50 [ICRA]B- assigned Non fund based limits 0.15 [ICRA]A4 assigned The assigned ratings take into account MTIL's adverse financial risk profile as reflected by low net profitability, depressed debt coverage indicators and negative tangible net worth of the company. The rating also takes into consideration the risks associated with tea being an agricultural commodity, which is dependent on agro-climatic conditions as well as the inherent cyclicality of the fixed cost intensive tea industry that leads to variability in profitability and cash flows of bulk tea producers like MTIL. The small scale of operations at present, with a single garden in Jalpaiguri district of West Bengal further accentuates the risk for the company. The rating also incorporates the experience of the promoters in the tea industry and favourable long term outlook on the domestic bulk tea industry. However, any moderation in tea prices going forward could exert pressure on the operating margins given the continuous rise in input cost including wage rates, which would increase the operating costs for the company, going forward. Malhati Tea & Industries Limited was acquired by the present management in 2010-11 from the erstwhile promoters. MTIL has a tea garden in the Jalpaiguri district of West Bengal, with a total area of around 463.47 hectares under plantation. The total production capacity of SBTEPL is around 14 lac kg of tea. Recent Results The company reported a net profit of INR0.15 crore on an OI of INR14.56 crore, as compared to a net profit of INR0.46 crore on an OI of INR13.64 crore during FY14. MAYFLOWER HOTELS: CRISIL Assigns 'B' Rating to INR100MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Mayflower Hotels and Resorts (MHFR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 100 CRISIL B/Stable The rating reflects the firm's exposure to risks related to stabilisation of operations, and its expected modest scale of operations in the intensely competitive hospitality industry. These rating weaknesses are partially offset by an advantageous location and the entrepreneurial experience of its promoters. Outlook: Stable CRISIL believes MFHR's credit risk profile will remain sensitive over the medium term to timely infusion of funds by its promoters to support liquidity, given the low cash accrual expected on account of its early stage of operations. The outlook may be revised to 'Positive' in case of successful stabilisation of operations by achieving higher-than-expected average room rent and occupancy rates, resulting in improvement in cash accrual and hence, a better financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected cash accrual as a result of low occupancy or room tariffs, or substantial debt-funded capital expenditure, leading to deterioration in the firm's financial risk profile. MFHR, a partnership firm established in 2008, is setting up a 40- key three-star hotel on AT Road, Guwahati, which is expected to commence commercial operations by January 2016. The firm is primarily owned and managed by the Guwahati-based Borah family. Mr. Biswadeep Borah and Mr. Kuladhar Borah are the key promoters and also actively manage the operations of the firm. MITTAL RICE: ICRA Reaffirms 'B' Rating on INR6cr LT Loan -------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B on the INR6.00 crore long term fund based limits of Mittal Rice & General Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 6.00 [ICRA]B; (reaffirmed) The rating reaffirmation takes into account the elevated gearing of the firm due to large working capital requirements, which have been primarily funded by working capital borrowings. Also, the low value added nature of operations and the intensely competitive nature of the rice milling industry have led to low profitability margins. The low margins coupled with the high gearing have resulted in weak coverage indicators as reflected in low interest coverage of 0.94 times during FY 2014-15. However, the ratings favourably take into account the extensive experience of the promoters and their strong relationships with several customers and suppliers, coupled with proximity of the mill to major rice growing areas, which results in easy availability of paddy. MRGM was set up in 1978 by Mr. R.D.Mittal and his family as a partnership firm. The firm is engaged in the milling and trading of rice (which includes both basmati and non basmati rice). It has a plant at Cheeka (Haryana) with a milling capacity of 3 tonnes per hour. Recent Results MRGM has reported a net profit of INR0.01 crore on an operating income of INR15.29 crore in FY 2014-15 as compared to a net profit of INR0.01 crore on an operating income of INR122.65 crore in the previous year. MOYALAN AGRO: CRISIL Assigns 'B+' Rating to INR10MM LT Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Moyalan Agro Pipes (Moyalan). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 70 CRISIL A4 Proposed Long Term Bank Loan Facility 10 CRISIL B+/Stable The ratings reflect the firm's below-average financial risk profile, marked by a small net worth, and its modest scale of operations. This rating strength is partially offset by the extensive experience of Moyalan's promoters in the pipes industry. Outlook: Stable CRISIL believes that Moyalan will continue to benefit over the medium term from the promoters' extensive industry experience and established dealership network. The outlook may be revised to 'Positive' in case of significant improvement in the firm's scale of operations and profitability, or substantial equity infusion, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if Moyalan undertakes aggressive, debt-funded expansions, or reports lower-than-expected revenues and operating profit margin, leading to deterioration in its financial risk profile. Moyalan is based in Thrissur (Kerala) and manufactures Polyvinyl Chloride (PVC) pipes. The firm is a proprietorship concern promoted by Mr. Rainy Jose. MUKTSAR COTTON: ICRA Reaffirms 'B' Rating on INR10cr LT Loan ------------------------------------------------------------ ICRA has reaffirmed its [ICRA] B rating on the INR10.00 crore long term fund based bank limits of Muktsar Cotton (P) Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund Based Limits 10.00 [ICRA]B; Reaffirmed ICRA's rating continues to be constrained on account of the low value additive nature of MCPL's' operations, which results in thin profit margins. The rating is also constrained by the company's low profitability and high leverage, which results in weak debt coverage indicators. The competitive intensity in the business remains high given the low entry barriers and the commoditized nature of the product. The high levels of cotton inventory maintained at the end of the cotton season continues to result in vulnerability of the company's profitability to adverse movements in cotton prices. The rating continues to favorably take into account the experience of the promoters in the cotton ginning industry, of close to three decades, and the favorable location of the ginning unit in the cotton belt and in close vicinity to the textile hub in Punjab, which provides easy access to both raw materials and customers. While the company's profitability is expected to remain low due to the nature of the business, improvement in the working capital cycle and funding thereof, will be the key determinants of the company's coverage indicators and would thus be the key rating sensitivities. MCPL was incorporated in September 1996 and is engaged in cotton ginning to produce cotton lint and cotton seeds. The company also crushes cotton seeds to produce cotton seed oil and cotton seed cake, however their proportion in the company's total sales is modest. The company has a ginning unit in Muktsar (Punjab) with 32 ginning machines and 7 expellers and an installed capacity for ginning 750 quintals of kapas and crushing 600 quintals of cotton seeds per day. The entire cotton produced is sold to a group company, which is engaged in cotton yarn spinning. Recent Results The company reported an Operating Income (OI) of INR48.71 crore and a net profit of INR0.16 crore for FY15, as against an OI of INR37.41 crore and a net profit of INR0.12 crore for the previous year. NARAYAN COLD: CRISIL Suspends B Rating on INR50MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Narayan Cold Storage Private Limited (NCSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 Cash Credit 50 CRISIL B/Stable Proposed Long Term Bank Loan Facility 29 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by NCSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NCSPL is yet to provide adequate information to enable CRISIL to assess NCSPL'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'. NCSPL, incorporated in 1995, is engaged in the business of providing cold storage services to the potato farmers and traders. The company is owned by West Bengal-based Kundu family who has experience of three and half decades in same line of business. NOBLE MOULDS: CRISIL Ups Rating on INR140MM Loan to 'B+' -------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Noble Moulds Private Limited (NMPL) to 'CRISIL B+/Stable' from 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Medium Term Loan 10 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Open Cash Credit 140 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') The upgrade reflects improvement in NMPL's liquidity because of adequate net cash accrual to meet debt obligation in 2014-15, the net cash accruals are expected to be comfortable at INR19.3 million against the repayment obligation of INR16.1 million for 2015-16. Liquidity is also supported by need-based support from promoters by way of unsecured loans; the promoters had infused USL's of INR127.1 million as on 30th September 2015. The upgrade also factors in expected healthy revenue growth to INR900 million in 2015-16 from 606.7 million in 2014-15 driven by revival of demand and addition of new customers. Capital structure is also expected to improve steadily because of repayment of existing long-term debt and absence of any significant debt-funded capital expenditure plan The rating reflects NMPL's modest scale of operations, low profitability, large working capital requirement, and weak financial risk profile because of high gearing and subdued debt protection metrics. These weaknesses are partially offset by promoters' extensive experience in manufacturing and assembly of consumer durables. Outlook: Stable CRISIL believes NMPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of substantial and sustained improvement in revenue and profitability, or in working capital management. Conversely, the outlook may be revised to 'Negative' if revenue or profitability is lower than expected, or if capital structure deteriorates on account of larger-than-expected working capital requirement or sizeable debt-funded capex. NMPL, set up in 1999, manufactures mouldings and other plastic products used in electronic goods such as televisions, washing machines, and refrigerators. Its facilities are in Noida (Uttar Pradesh). PASWARA PAPERS: ICRA Lowers Rating on INR8.50cr Loan to B+ ---------------------------------------------------------- ICRA has revised its long term rating on the INR8.50 crore bank facilities of Paswara Papers Limited to [ICRA]B+ from [ICRA]BB- (Stable) with a Stable outlook. ICRA has also revised its rating on the INR1.64 crore unallocated limits of the company to [ICRA]B+ from [ICRA]BB-(Stable) on the long-term scale, and reaffirmed the rating on the short-term scale at [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term-Fund 8.50 [ICRA]B+; revised from based [ICRA]BB- (Stable) Long term/Short 1.64 [ICRA]B+;revised from Term-Unallocated [ICRA]BB- (Stable); [ICRA]A4;reaffirmed ICRA's rating action is driven by the significant increase in the scope of PPL's ongoing brown-field capital expenditure, with a 60 % increase in the planned capacity, which is estimated to result in a revision in the project cost of around INR114.50 crore (from INR132.50 crore to INR247.00 crore) and will also result in a one year delay in the Commercial Operations Date (COD). While the scope of the project has been enhanced, debt funding is yet to be tied up and the repayment of the term loan which was initially availed is commencing from December 2015, as per the original schedule, hence, tie-up with banks for additional funding is critical for completion of the project. Large pending capex and scheduled debt repayments will result in increased pressure on the company's liquidity and will require timely infusion of funds by the promoters. Also, the revised scope of the project is significantly higher than the company's current production capacities. Further, the ratings are constrained by the company's low profitability and moderate coverage indicators; and the moderately low capacity utilisation for the paper board manufacturing facility in the last few years. The ratings, however factor in the long experience of the promoters and the established presence of the company in the paper business which facilitates access to raw materials, and its proximity to the National Capital Region (NCR), which is the major market for kraft paper in North India. Going forward, tie up of debt for the revised project scope, timely infusion of funds by the promoters to meet the scheduled debt repayments, as well as completion of the ongoing capital expenditure will be the key rating sensitivities. Any shift in the COD or any cost overrun will also be key monitorables. PPL was incorporated in November, 1980 and is a part of the Paswara Group of companies, which also includes Paswara Chemicals Ltd (rated [ICRA]BB-), Paswara Impex Ltd. and Modern Chemicals (rated [ICRA]BB-). The company's current product portfolio includes two products i.e. Kraft paper and Paper board. The company has two manufacturing lines: one each for Kraft paper and Paper board with installed capacities of 14,000 Metric Tonnes (MT) and 16,000MT per annum respectively, at its manufacturing facility located in Meerut, Uttar Pradesh. The Kraft paper manufactured by the company is used in the packaging industry for making corrugated boxes, while paper board finds application in making cones that are used for rolling purposes in cloth shops etc. The company is setting up new facilities for manufacturing Multi- layer Kraft paper on the land adjoining the existing plant of the company. The multi-layer Kraft paper will have Burst Factor (BF) in the range of 27 BF to 40 BF which will be significantly superior to the present levels of products which are single layer Kraft paper of 18 BF. Initially, the company planned a capex of INR132.51 crore to set up the unit with annual production capacity of 82,500MT, however, the scope of the capex has been expanded, with a revised production capacity of 1,32,000 MT. Owing to the change in the scope of the project, the project cost has been revised to INR247 crore and the COD has been shifted by one year, to April 1, 2016. Recent Results PPL registered an Operating Income (OI) of INR65.96 Crore and a Profit After Tax (PAT) of INR0.30 Crore in FY15, as compared to an OI of INR58.58 Crore and a PAT of INR0.15 Crore in the previous year. PONGALUR PIONEER: ICRA Suspends B-/A4 Rating on INR30cr Loan ------------------------------------------------------------ ICRA has suspended the long-term rating of [ICRA]B- and the short- term rating of [ICRA]A4 assigned to the INR30.00 crore bank facilities of Pongalur Pioneer Textiles Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the Company. PONMANI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR57.5MM Loan ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Ponmani Industries (PI) continues to reflect PI's modest scale of operations and customer concentration. These rating weaknesses are partially offset by the extensive industry experience of PI's proprietor and its above- average financial risk profile, marked by a healthy capital structure. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL A4 (Reaffirmed) Cash Credit 57.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that PI will continue to benefit from its proprietor's extensive industry experience over the medium term. The outlook may be revised to 'Positive' in case PI scales up its operations significantly while diversifying its customer profile and maintaining its financial risk profile, leading to a substantial increase in its cash accruals. Conversely, the outlook may be revised to 'Negative' if there is a decline in orders from the Tamil Nadu government, or deterioration in PI's working capital management, or if the firm undertakes a larger-than- expected debt-funded capital expenditure (capex) programme, weakening its financial risk profile. PI, set up in 1985, is a sole proprietorship concern that manufactures and supplies table-top wet grinders, primarily to the Tamil Nadu government. Its day-to-day operations are managed by its proprietor, Mr. P Kumaresan. PI reported a net profit of INR4.82 million on sales of INR225.9 million for 2014-15 (refers to financial year, April 1 to March 31), as against a PAT of INR25 million on net sales of INR442.7 million for 2013-14. PRANI AUTO: ICRA Reaffirms B+ Rating on INR17.40cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to INR17.75 crore fund based limits of Prani Auto Plaza Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund based Limits 17.40 [ICRA]B+; reaffirmed Unallocated Limits 0.35 [ICRA]B+; reaffirmed The rating reaffirmation continues to be constrained by decline in sales of the company in FY15 owing to a decrease in sales volume of passenger vehicles, in line with the principal's (Tata Motors Limited) sales. The rating is further constrained by low operating margins and return indicators in the auto dealership business; and low pricing flexibility due to commission structure being decided by the principal; and strong competitive pressure from other OEMs. The rating reaffirmation however takes comfort from the long- standing experience of the promoters in the automobile industry and limited competition faced by the firm in Anatapur and Kurnool districts of Andhra Pradesh with one other authorized dealer for TML in both districts and sole dealership for new models (Zest and Bolt) launched by the principal. Going forward, the company's ability to improve its profitability and liquidity given the competitive environment would be the key rating sensitivity. Prani Auto Plaza Private Limited was started in 2003 as a partnership firm which was subsequently converted into a private limited company in 2009. The company is the authorized dealer of passenger vehicles of Tata Motors Limited (TML) in Anantapur and Kurnool districts in Andhra Pradesh. It opened its first showroom in Ananthapur in 2003, followed by showrooms in Kurnool in 2007 and Nandyala in 2009. These three showrooms are located in the company's own premises. Additionally, the company opened showrooms in Hindupur in 2011 and Tadipatri in 2012 on a lease basis In 2013, the company started a 3S showroom in Tirupati. It has 6 showroom outlets and 3 service centers. Recent Results For FY15, the firm reported net profit of INR0.06 crore on an operating income of INR60.24 crore, as against net profit of INR0.07 crore on an operating income of INR65.37 crore during FY14. For 7MFY16 (provisional), it has reported an operating income of INR39.89 crore. PURE PHARMA: CRISIL Suspends 'B' Rating on INR64MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Pure Pharma Limited (PPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 Cash Credit 64 CRISIL B/Stable Letter of Credit 35 CRISIL A4 Proposed Long Term Bank Loan Facility 9.7 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by PPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PPL is yet to provide adequate information to enable CRISIL to assess PPL'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' PPL was originally established as a partnership firm in 1955 by Mr. J P Badlani and Mr. R W Valvani. It was reconstituted as a closely held public limited. The company manufactures generic drugs for human and veterinary application, in the form of tablets, capsules, liquids, powders, and injections. PPL is based in Indore (Madhya Pradesh). RAJHANSMETALS PRIVATE: CARE Ups Rating on INR25.27cr Loan to B+ --------------------------------------------------------------- CARE revises the LT rating and reaffirms the ST rating assigned to the bank facilities of Rajhansmetals Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 25.27 CARE B+ Revised from CARE B Short-term Bank Facilities 13.00 CARE A4 Reaffirmed Rating Rationale For arriving at the ratings of Rajhans Metals Private Limited (RMPL), CARE has considered the combined financial and business profile of the two entities namely, RMPL and Rajhans Alloys Private Limited (RAPL), together referred as Rajhans Group (RG), due to their managerial linkages and presence in the same industry. The revision in long-term rating of RG takes into account the support extended by the promoters in terms of fund infusion through unsecured loans which are subordinated to the bank loans leading to improvement in capital structure as on March 31, 2015. Furthermore, the revision in rating also takes into account the consistent improvement in operating profitability and reducing net losses over the past three years ended FY15 (refers to the period April 1 to March 31). The ratings, however, continue to be constrained by susceptibility of RG's profitability margins to volatile raw material prices and foreign currency rate fluctuation on its imports, high working capital intensity of its operations and presence in the highly competitive and fragmented brass and copper alloy extrusion industry. The ratings continue to draw strength from vast experience of the promoters along with RG's established track record of operations in the industry aided by effective sales and distribution network. RG's ability to improve its profitability margin by managing raw material price volatility and foreign exchange rate fluctuations in a highly competitive brass and copper industry along with improvement in its capital structure and efficient management of its working capital would be the key rating sensitivities. RMPL is the flagship company of RG based out of Jamnagar, Gujarat. It was incorporated in 1987 by Mr Milan Dodhia and is engaged in manufacturing of brass & copper alloy extruded rods and extruded sections. RMPL's products find application in automobile components, fixtures & fittings and lock-bodies. RMPL had an installed melting capacity of 12,150 MTPA and extrusion capacity for brass rods and sections of about 9,600 MTPA as on September 30, 2015. Apart fromits own extrusion facility, RMPL also gets some work done on job work from outside parties and its associates. RAPL, group concern of RMPL, was incorporated in 2009 at Jamnagar (Gujarat) to undertake manufacturing of brass & copper extrusion rods and components. As on June 30, 2015, RAPL has an installed capacity of 18,000 MTPA for melting and 9,600 MTPA for extrusion of brass rods & sections. RAJNI EXPORTS: CRISIL Reaffirms B+ Rating on INR100MM Cash Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Rajni Exports & Imports (REI) continues to reflect REI's below-average financial risk profile, marked by a modest net worth, and exposure to intense competition in the agro commodities trading industry. These rating weaknesses are partially offset by the extensive experience of REI's partners in the agro commodities trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that REI will continue to benefit over the medium term from its promoters' extensive experience in the agro commodities trading business. The outlook may be revised to 'Positive' in case the firm significantly scales up its operations and improves its profitability, while it maintains its working capital requirements. Conversely, the outlook may be revised to 'Negative' in case the cash accruals decline significantly or if its working capital management deteriorates, leading to weakening of its financial risk profile. REI, set up in 2010, is based in Chennai. It trades in agro commodities, mainly pulses. Its operations are managed by Mr. Munirathnam and Mr. Rajiv Naaram. RATANPUR LAND: CRISIL Suspends B+ Rating on INR36MM Term Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Ratanpur Land and Tea Estates Private Limited (RLTEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 24 CRISIL B+/Stable Term Loan 36 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by RLTEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RLTEPL is yet to provide adequate information to enable CRISIL to assess RLTEPL'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'. RLTEPL, set up in 1984, was acquired by the Bokahola group in 2009. At present, 97.4 per cent of RLTEPL's shares are held by Kasojan Tea Company Pvt Ltd (KTCPL, part of the Bokahola group). The group, promoted by the Bezboruah family, cultivates and processes tea. RLTEPL is into tea cultivation and sells tea leaves in the auction markets. RLTEPL's registered office and manufacturing facility is at Johrat, Assam. SAMRA INDUSTRIES: CRISIL Assigns 'B' Rating to INR70MM Cash Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Samra Industries Limited (SIL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable The rating reflects SIL's modest scale of operations in the highly fragmented rice industry and weak financial risk profile because of high gearing and weak debt protection metrics. These weaknesses are mitigated by promoters' extensive experience and their funding support. Outlook: Stable CRISIL believes SIL will benefit over the medium term from its promoters' extensive experience and their funding support. The outlook may be revised to 'Positive' if financial risk profile improves owing to higher-than-expected cash accrual or substantial capital infusion along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if lower- than-expected cash accrual, significantly large working capital requirement, or any large, debt-funded capital expenditure weakens liquidity. Promoted by Mr. Bimalpal Singh, Mr. Taranbir Singh and Mr. Satbir Sharma, SIL was incorporated 2012 and processes basmati and non- basmati rice at its plant in Faridkot (Punjab). SIL has total milling capacity of 5 metric tonne per hour. SANDEEP RICE: ICRA Reaffirms 'B' Rating on INR10cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B to the INR10.00 crore (enhanced from INR8.0 crore) long term fund based limits of Sandeep Rice Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 10.00 [ICRA]B; Reaffirmed The rating reaffirmation take into account the low value add nature of operations and intensely competitive nature of the rice milling industry which has led to low profitability margins. In addition the company has high gearing arising out of large working capital requirements which have primarily been funded by working capital borrowings. Low profitability margins coupled with high gearing has led to weak coverage indictors as reflected by low interest coverage of 1.47 times during March 2015. Nevertheless the ratings favourably take into account the long standing experience of promoters with strong relationships with several customers and suppliers coupled with proximity of the mill to major rice growing area which results in easy availability of paddy. SRM was established in 2000 as a partnership firm by Mr. Amarjeet Goyal, Mrs. Meena Devi and Mr. Jai Bhagwan Goyal. The firm is engaged in milling of basmati rice. The firm's milling unit is based out of Cheeka and has an installed capacity of 6 ton/hour for milling of rice. The key raw material for the firm is basmati paddy which is mostly procured from the "mandi" of Karnal and Cheeka (Haryana) during the paddy buying season i.e. September to December every year. However, if required firm also buys paddy from the market in off season period. Recent Results SRM reported a net profit (PAT) of INR0.06 crore on an operating income of INR38.60 crore in FY 2014-15 as compared to net profit (PAT) of INR0.06 crore on an operating income of INR38.43 crore in the previous year. SANKAR PRASAD: CRISIL Suspends 'B+' Rating on INR75MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sankar Prasad Rice Mill (SPRM). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3.1 CRISIL A4 Cash Credit 75 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 35 CRISIL B+/Stable Term Loan 6.9 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SPRM with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPRM is yet to provide adequate information to enable CRISIL to assess SPRM'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' Formed in 2003, SPRM is a proprietorship concern of Mr. Bhabhasindhu Gorai. The firm is engaged in milling and processing of par boiled rice in Bankura (West Bengal). SARADAMBIKA POWER: CRISIL Assigns 'B' Rating to INR50MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long term bank facilities of Saradambika Power Plant Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Term Loan 49 CRISIL B/Stable Working Capital Demand Loan 50 CRISIL B/Stable Proposed Long Term Bank Loan Facility 6.4 CRISIL B/Stable Open Cash Credit 35.0 CRISIL B/Stable Funded Interest Term Loan 43.6 CRISIL B/Stable Long Term Loan 266 CRISIL B/Stable The rating reflects SPP's modest scale of operations, geographical and customer concentration in its revenue profile and exposure to volatility in raw material prices. The rating also factors in its working capital intensive nature of operations and its weak financial risk profile marked by high gearing, weak debt protection metrics and a modest net worth. These ratings weaknesses are partially offset by the benefits derived from the promoter's extensive experience in the power generation industry and the revenue visibility supported by its power purchase agreement with the Maharashtra State Electricity Board. Outlook: Stable CRISIL believes that SPP will benefit over the medium term from its experienced promoters and its long-term offtake agreement. The outlook may be revised to 'Positive' in case of significant and sustained improvement in the company's revenue and profitability, coupled with an improvement in working capital cycle. Conversely, the outlook may be revised to 'Negative' if the company reports lower-than-expected revenue and profitability or undertakes a larger-than-expected debt-funded capital expenditure programme, or if its working capital cycle lengthens, resulting in further weakening of its financial risk profile. Incorporated in August, 2004 and based in Srikakulam (Andhra Pradesh), SPP operates a biomass power plant with installed capacity of 10MW. The plant is located in Chandrapur district (Maharashtra). The company is promoted by Mr. B Govinda Rajulu and the day-to day operations are managed by his son Mr. B Satya Srinivasa. The company started its commercial operations in June, 2008. SFS GLOBAL: ICRA Suspends B+ Rating on INR17cr Bank Loan -------------------------------------------------------- ICRA has suspended its long-term rating of [ICRA]B+ assigned to the INR17.0 crores bank facilities of SFS Global Limited. The suspension follows ICRA's inability to carry out a rating surveillance in absence of requisite information from the company. SHAKTI CABLES: ICRA Assigns B- Rating to INR1.75cr Loan ------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B- to the INR1.75 crore fund based limits of Shakti Cables Private Limited. ICRA has also assigned long-term/short-term ratings of [ICRA]B-/[ICRA]A4 to the INR4.50 crore non fund based limits and INR3.75 crore unallocated limits of SCPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 1.75 [ICRA]B- assigned Non Fund Based Limits 4.50 [ICRA]B-/[ICRA]A4 assigned Unallocated Limits 3.75 [ICRA]B-/[ICRA]A4 assigned The assigned ratings are constrained by the small scale of operations of the company in cable manufacturing industry with thin operating margins at ~6% over the last 2 years; stretched liquidity profile owing to high debtor and inventory levels as reflected by full utilisation of working capital limits; and a highly competitive industry characterized by presence of large companies with high financial flexibilities and lower cost structures. The ratings are further constrained by the high client concentration risk with more than 90 percent of revenues being derived from 3 clients; high geographic concentration risk with revenues and orders emanating from Andhra Pradesh and Telangana and significant vulnerabilities to raw material price fluctuations in light of limited bargaining power of SCPL. The assigned ratings, however, factor in the promoter's experience of nearly three decades in the cable manufacturing business; small but healthy order book of INR10.57 crore (1.25 times FY15 revenues) as on November 30, 2015 which provides near term revenues visibility; and favourable demand for cables in the medium term given the central government's focus on providing uninterrupted power throughout the country. Going forward, the ability of the company to increase its size and profitability, diversify order book and while managing its working capital requirements effectively remain the key credit rating drivers. Shakti Cables Pvt. Ltd. (SCPL) was incorporated in 1984 by Mr. Anil Parikh to manufacture cables and conductors. The company is engaged in the manufacturing of Low Tension (LT) power cables, control cables, and instrumentation cables for supply to Andhra Pradesh and Telangana Transmission and Distribution companies. SCPL's plant is located in Patancheru, Hyderabad having manufacturing capacity of 150 tons per month. Recent Results As per the audited results for FY2015, the company reported profit after tax of INR0.08 crore on turnover of INR8.47 crore as against profit after tax of INR0.06 crore on turnover of INR7.93 crore during FY2014. SHIVAM COTTON: ICRA Reaffirms B Rating on INR8.0cr Cash Loan ------------------------------------------------------------ ICRA has reaffirmed the long-term rating of [ICRA]B to the INR8.00 crore (enhanced from INR6.00 crore) cash credit facility and INR1.16 crore (reduced from INR1.50 crore) term loan facility of Shivam Cotton & Oil Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 8.00 [ICRA]B reaffirmed Term Loan 1.16 [ICRA]B reaffirmed The reaffirmation of the rating continues to factor in SCOI's weak financial profile characterized by stretched capital structure, weak debt coverage indicators and low operating margins on account of low value addition in the business; highly competitive and fragmented industry structure owing to low entry barriers. The rating continues to be constrained by the vulnerability of the firm's profitability to raw material (i.e. raw cotton) prices, which are subject to seasonality, crop harvest and regulatory risks. ICRA also notes that as SCOI is a partnership firm, any significant withdrawals from the capital account by the partners would affect its net worth and thereby its capital structure. The rating, however, continues to favourably consider the long experience of the firm's promoters in the cotton industry and favourable location of the firm's manufacturing facility at Saraya, Rajkot in Gujarat giving it an easy access to quality raw material. Established in October 2012 as a partnership firm, Shivam Cotton & Oil Industries (SCOI) is engaged in the business of ginning & pressing of raw cotton and crushing of cotton seeds. The firm's manufacturing facility is located at Saraya, Rajkot in Gujarat and is equipped with twenty-four ginning machines, one pressing machine and five expeller machines. The firm started commercial operations from September 2013. The firm is currently promoted by Mr. Hasmukh Viramgama, Mr. Harjivan Bhimani along with other relatives/friends who have a long-standing experience in the cotton industry. Recent Results For FY 15, the firm has reported an operating income of INR46.91 crore and profit after tax of INR0.23 crore as against an operating income of INR41.43 crore and profit after tax of INR0.01 crore in FY14. SHREE AMBIKA: ICRA Cuts Rating on INR254cr Fund Based Loan to D --------------------------------------------------------------- ICRA has revised the long term rating to [ICRA]D from [ICRA]BB (negative) to INR230.45 crore term loans, INR254.00 crore fund based facilities and INR27.85 crore proposed fund based facilities of Shree Ambika Sugars Limited. ICRA has also revised the short term rating to [ICRA]D from [ICRA]A4 to INR40.87 crore of non fund based facilities and INR9.13 crore proposed non fund based facilities of SASL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 230.45 [ICRA]D, revised from [ICRA]BB (negative) Fund Based Limits 254.00 [ICRA]D, revised from [ICRA]BB (negative) Proposed Fund Based 27.85 [ICRA]D, revised from Limits [ICRA]BB (negative) Non Fund Based 40.87 [ICRA]D, revised from Limits [ICRA]A4 Proposed Non Fund 9.13 [ICRA]D, revised from Based Limits [ICRA]A4 The rating revision factors in the delays in the debt servicing by the company on account of losses at operating level and at net level of the Thiru Arooran group given the high cane cost of production coupled with low sugar realizations. The ratings continue to factor in the weak capital structure and coverage metrics of the group on account of consequent erosion in net worth coupled with relatively high debt. While the sugar realizations are firming up since Sep, 2015, the sustainability of the same is yet to see given the surplus domestic and international stock positions. The ratings continue to remain constrained by the vulnerability of sugar operations to agro climatic variations and government policies relating to cane pricing and exports. However, ICRA favorably factors in the recent discussions with the lenders which include conversion of fund based limits to non fund based limits and could ease liquidity pressure on SASL to an extent. The ratings continue to factor in SASL's fully integrated nature of operations with cogeneration and distillery units which provide alternate revenue streams and some cushion against cyclicality in sugar business. The ratings also take into consideration SASL's experienced management, the dominant position of the company in its command area and proximity of the plants of the company to ports which it has used favorably to export sugar in the recent past. Shree Ambika Sugars Limited, is part of Thiru Arooran group, and was incorporated in 1988. Thiru Arooran Sugars Limited has 36.14% stake in SASL. SASL's sugar plants are based in Cuddalore and Thanjavur districts of Tamil Nadu. It has 11,500 TCD of cane crushing capacity, 56 MW cogeneration unit and 60 klpd distillery. It also has 750 TPD sugar refinery. Recent Results During FY15, the consolidated entity has reported operating income of INR540.49 crore and net loss of INR66.52 crore as against operating income of INR485.86 crore and net loss of INR21.16 crore during FY14. SHREE SAIBABA: CRISIL Reaffirms D Rating on INR88MM Term Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Shree Saibaba Jeevandhara Hospital India Pvt Ltd (Shree Saibaba Hospital) continue to reflect instances of delay by the company in servicing its term debt. The delays have been caused by the company's weak liquidity, as delays in commencement of its operations have led to low revenue. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 88 CRISIL D (Reaffirmed) Shree Saibaba Hospital also has a below-average financial risk profile and is exposed to demand offtake risk because of the initial phase of its operations. However, the company benefits from its promoters' extensive experience in the healthcare industry. Shree Saibaba Hospital was incorporated in 2012-13 (refers to financial year, April 1 to March 31). It is promoted by Mr. Anand Haldiwal, Mr. Omprakash Haldiwal, Mrs. Rakhi Haldiwal, Dr. Jagdish Chand Yadav, Dr. Manoj Gurjar, and Dr. Vishal Yadav. The company operates a hospital in Barwani (Madhya Pradesh); the hospital started operations in July 2014. SHRI BALAJI: ICRA Reaffirms 'D' Rating on INR8.21cr Term Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]D for the INR10.21 crore fund-based bank facilities (reduced from INR11.21 crore earlier) and INR1.79 crore proposed bank facilities (increased from INR0.79 crore earlier) of Shri Balaji Literary and Charitable Society (SBLCS). The rating suspension done in November 2015 stands revoked. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based bank 2.00 [ICRA]D reaffirmed; facilities: CC/OD suspension revoked Fund based bank 8.21 [ICRA]D reaffirmed; facilities: Term suspension revoked Loan Proposed bank 1.79 [ICRA]D reaffirmed; facilities suspension revoked For arriving at the rating, ICRA has taken into account the consolidated business and financial risk profiles of Bahra Educational and Charitable Society, Shri Balaji Literary and Charitable Society, Rayat and Bahra Group of Institutes: An Educational and Charitable Society and Rayat Educational and Research Trust, given the common management and fungible nature of the cash flows between these entities. The rating reaffirmation reflects continued delays in debt- servicing by the society on account of its stretched liquidity position. The group has been undertaking sizeable capital expenditure over the past few years, which together with fungibility of cash flows between group entities as well as inadequacy of long-term funds vis-a-vis funding requirements and consequent reliance on short-term sources of finance (such as bank overdraft limits) continues to keep the group's liquidity position stretched. Further, the group often faces cash flow mismatches owing to lumpy nature of fee receipts (which are collected on a half-yearly basis) vis-a-vis monthly interest payment obligations and other operating expenses. While reaffirming the rating, ICRA has taken a note of the established presence of Rayat-Bahra group in the Punjab region, where the group caters to over 30,000 students through more than 30 higher educational institutes and varied course offerings. Further, ICRA has also taken a note of the society's healthy operating surplus margins. Nevertheless, these strengths are largely offset by the concerns mentioned above. In ICRA's view, scale of capital expenditure undertaken at the group level and adequacy and timeliness of long-term funding availed to fund the same will be the key determinants of the group's liquidity profile and will thus remain the key rating sensitivities going forward. Further, the society's ability to improve its occupancy levels and hence its scale of operations will be a critical determinant of its debt-coverage indicators. Operational since 2009, Shri Balaji Literary and Charitable Society (SBLC) is a part of Punjab based Rayat-Bahra Group. The group caters to over 30,000 students across more than 30 colleges and two Private Universities. SBLCS has set up five colleges, Bahra Faculty of Engineering, Bahra Faculty of Management, Bahra Polytechnic College, Bahra Institute of Pharmacy and Bahra College of Law, which offer degree and diploma courses in streams such as engineering, management, pharmacy and law. All the colleges are located in a single campus in Patiala (Punjab) and the degree colleges are affiliated to Punjab Technical University, Jalandhar. SHRINATHJI SPINTEX: ICRA Lowers Rating on INR12.20cr Loan to D -------------------------------------------------------------- ICRA has downgraded the long term rating assigned to the INR12.20 crore working capital limits and term loan limits from [ICRA]B to [ICRA]D. ICRA has also downgraded the short term rating assigned to the INR1.50 crore export packaging limits (sublimit of Cash Credit facility) from [ICRA]A4 to [ICRA]D of Shrinathji Spintex Private Limited. The rating continues to remain Suspended. The revision in ratings factor in the recent instances of delays in debt servicing. Shrinathji Spintex Private Limited (SSPL), promoted by Mr. Dilip N Marakana, was incorporated in November 2010 and is engaged in the business of producing carded yarn ranging between 20s to 40s counts. The manufacturing facility of the company is located at Gondal, Gujarat with an installed capacity of 10,000 spindles translating to 5 tons of yarn per day. STANDARD AUTOGEARS: CRISIL Cuts Rating on INR37.5MM Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Standard Autogears Private Limited (SAPL) to 'CRISIL D' from 'CRISIL B/Stable'. The downgrade reflects recent instances of delay by SAPL in servicing its long-term debt due to weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 37.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Open Cash Credit 30 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Cash 5 CRISIL D (Downgraded from Credit Limit 'CRISIL B/Stable') SAPL's relationship with its key client is under pressure leading to lower offtake from installed capacities and consequently, to stress on liquidity. In 2014-15 (refers to financial year, April 1 to March 31), SAPL raised funds through unsecured loans from banks and non-banking financial companies to support liquidity. However, continued dispute with the key client and management's inability to add customers has led to suboptimal capacity utilisation. SAPL's cash credit limits are also frequently overdrawn, but are regularised within 30 days. SAPL has a below-average financial risk profile because of high gearing, and has high customer concentration in revenue. However, it benefits from promoter's extensive industry experience in diversified technical industries. SAPL, incorporated in 1997 in Mohali (Punjab) by Mr. Anil Atri, manufactures ceiling fan blades and refrigerator components. It has a fan blade manufacturing plant in Mohali with capacity of 100,000 packs. Profit after tax (PAT) was INR0.004 million on revenue of INR127.68 million for 2014-15, against PAT of INR0.86 million on total revenue of INR134.99 million for 2013-14. TALIN INT'L: CARE Reaffirms B+/A4 Rating on INR6.25cr Loan ---------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Talin International Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short-term 6.25 CARE B+/CARE A4 Bank Facilities Reaffirmed Short-term Bank Facilities 0.50 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Talin International Private Limited (TIPL) continue to remain constrained on account of its modest scale of operations, thin profitability, leveraged capital structure, weak debt coverage indicators and weak liquidity position marked by working capital intensive nature of operations. The ratings remained constrained on account of its presence in the highly fragmented industry, susceptibility of profit margins to fluctuation in metal prices and foreign exchange rates. The ratings, however, continues to derive benefit from experience of the promoters, presence of its manufacturing facility in the brass cluster of Jamnagar with ease of availability of raw material. The ability of TIPL to increase its scale of operations and improvement in profitability and capital structure coupled with efficient working capital management are the key rating sensitivities. Incorporated in the year 2002, Ahmedabad-based (Gujarat) Talin International Private Limited (Erstwhile Arpit International Private Limited) is a private limited company promoted by Mr Naresh Jhawar and Mr Anoop Jhawar. The company is primarily engaged in the trading of ferrous and non-ferrous metals. TIPL also manufactures brass products like fasteners, anchors, plumbing fittings, hardware and electrical accessories which find application in construction, real estate and other industries. TIPL has installed capacity of 720 Metric Tonnes per Annum (MTPA) at its sole manufacturing establishment situated at Jamnagar. It sells its products in the domestic and international market. As per the audited results of FY15 ( refers to the period April 1 to March 31), TIPL reported profit after tax (PAT) of INR0.08 crore on a total operating income (TOI) of INR54.45 crore as against PAT of INR0.20 crore on a TOI of INR46.76 crore during FY14. As per the provisional results of 8MFY16 (refers to the period from April, 2015 to November, 2015), TIPL achieved TOI of INR37.50 crore. UDAY VIJAY: CRISIL Suspends 'B+' Rating on INR52MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Uday Vijay Steel Private Limited (UVSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 27.4 CRISIL A4 Cash Credit 52 CRISIL B+/Stable Letter of Credit 9.1 CRISIL A4 Term Loan 23.9 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by UVSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, UVSPL is yet to provide adequate information to enable CRISIL to assess UVSPL'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'. UVSPL was set up in 2005 by Mr. Sudhir Kumar Rai, Mr. Sanjay Kumar Rai, Mr. Vijay Kumar Rai, and Mr. Chandralok Prasad. It manufactures mild steel ingots at its unit in Bokaro (Jharkhand). V.K.GOPAL: ICRA Reaffirms 'B' Rating on INR7.50cr LT Loan --------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B assigned to INR7.50 crore term loan facilities of V.K.Gopal. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term limits 7.50 [ICRA]B (reaffirmed) The ratings are constrained by the firm's small scale of operations which restricts operational and financial flexibility to an extent, vulnerability of profits to changes in prices of key raw materials and the geographic and client concentration risk as the firm's operations are confined to road construction orders from the government agencies in Karnataka only. Further, the rating is constrained by the stretched liquidity position of the firm as reflected by the high working capital intensity, resulting from increase in inventory holding during FY15. The rating also takes into account the modest coverage indicators of the firm as indicated by Total Debt/OPBDITA of 2.46 times and Net Cash Accruals (NCA)/Total Debt of ~5% as on 31st March 2015. The ratings, however, take comfort from the longstanding experience and track record of the promoter in the construction industry, spanning nearly two decades. The ratings factors in the comfortable capital structure of the firm as indicated by a gearing of 0.44 times as on 31st March 2015 and the healthy order book, which provides revenue visibility in the near to medium term. M/s V.K.Gopal was established by Mr. V.K.Gopal in the year 1995 as a proprietorship firm. Mr.V.K.Gopal has been in the construction industry for more than 20 years through this firm. Since the inception, the firm has been involved in construction of civil works, formation of roads, and asphalting. The firm has completed projects mainly in the state of Karnataka and most of them have been done in and around Bangalore. Recent Results V.K.Gopal earned a profit before tax (PBT) of INR1.28 crore on an operating income (OI) of INR14.66 crore in the FY 2014-15 as compared to a PBT of INR4.94 crore on an OI of INR39.98 crore in FY 2013-14. VASHU YARN: ICRA Suspends B Rating on INR6.05cr Term Loan --------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR6.05 crore term loans, INR5.00 crore fund based facilities, INR0.40 crore non-fund based facilities and INR2.55 crore proposed facilities, and [ICRA]A4 rating assigned to the INR1.00 crore short term, non- fund based facilities of Vashu Yarn Mills India Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the Company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. VENKATESHWARA COTTON: CARE Ups Rating on INR8.34cr Loan to BB- -------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Venkateshwara Cotton Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 8.34 CARE BB- Revised from CARE B+ Rating Rationale The revision in the rating assigned to the bank facilities of Venkateshwara Cotton Mills (VCM) was on account of improvement in the profitability, capital structure and debt coverage indicators during FY15 (refers to the period April 1 to March 31). The rating continues to draw strength from vast experience of the promoters and geographically diversified operations. The rating, however, continues to remain constrained on account of constitution as a partnership firm and presence in highly fragmented cotton ginning industry with limited value addition, seasonality associated with raw material availability and prices and supply for cotton being highly regulated by the government. The rating also factors in the weak financial profile marked by moderate liquidity. The ability of VCM to increase its scale of operations, improve its profitability and capital structure with efficient working capital management are the key rating sensitivities. VCM was established on April 12, 2013 as a partnership firm by Mr Ravi Kumar, Mr Rameshwar Garg, Mr Gokulsingh, Mr Chunnilal Dhobal, Mr Gopaldas Ramdayal Mittal and Mr Pavan Manoharlal Mittal. VCM has its cotton ginning & pressing unit located at Sadashivepet, Andhra Pradesh having processing capacity of 10,000 bales per month. All partners of the firm are dealing in cotton business as a partner in various firms of Suraj group of Sendhwa i.e. Radha Madhav Trading Co. (RMTC), Suraj Cotex (SC), Suraj Fibers (SF). As per the audited results of FY15, VCM earned a net profit of INR0.57 crore on a total operating income (TOI) of INR37.28 crore as against a net profit of INR0.14 crore on a TOI of INR23.20 crore during FY14. During 8M, FY16 (Provisional) VCM has registered TOI of INR14.73 crore. VIRTUAL GALAXY: ICRA Cuts Rating on INR16.52cr Loan to 'D' ---------------------------------------------------------- ICRA has downgraded the long term rating assigned to INR16.52 crores bank facilities of Virtual Galaxy Infotech Private Limited (VGIPL) to [ICRA]D from [ICRA]BB+ . ICRA has also downgraded the short term rating assigned to INR5 crores bank facilities of VGIPL to [ICRA]D from [ICRA]A4+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 16.52 [ICRA]D; Downgraded from Based Limits [ICRA]BB+(Stable) Short Term Non 5.00 [ICRA]D; Downgraded from Fund based Limits [ICRA]A4+ The revised rating reflects delays in debt servicing by the company on account of stretched liquidity condition arising out of issue pertaining to timely realization of receivables. Virtual Galaxy Infotech Private Limited provides include core banking solutions for co-operative banks and ERP solutions for SMEs. It has implemented CBS in more than 400 branches of co- operative banks. It was established as a partnership firm in 1995 and later incorporated as a private limited company in 1997. VGIPL is promoted by Mr. Avinash Shende and Mr. Sachin Pande. The company employs about 200 people across development, marketing and implementation functions. YOUNG BRAND: Ind-Ra Affirms BB+ Long-Term Issuer Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Young Brand Apparel Private Limited's Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects YBA's sustained moderate credit profile despite volatile EBITDA margins. In FY15, net leverage (total Ind-Ra adjusted net debt/operating EBITDAR) was 4.2x (FY14: 3.1x), EBITDA interest cover was 3.0x (2.9x) and EBITDA margins were 5.9% (9.7%). EBITDA margins fluctuated between negative 4.7% and 9.7% over FY12-FY15 due to raw material price volatility. Top line continued to grow at a brisk pace (CAGR of 26.9% over FY12-FY15) on increasing order flow from the existing customers. The ratings also factor in YBA's comfortable liquidity position with its fund-based facilities being utilized at an average of 70.7% over the 12 months ended November 2015. RATING SENSITIVITIES Positive: The stabilization in the profitability leading to a sustained improvement in the credit metrics will be positive for the ratings. Negative: Any deterioration in the EBITDA margins leading to sustained deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE YBA, which commenced production in 2010, manufactures and exports undergarments and knitted apparel. YBA's ratings: -- Long-Term Issuer Rating: affirmed at 'IND BB+', Outlook Stable -- INR213.01 mil. long-term loans: affirmed at 'IND BB+'/ Stable -- INR200.00 mil. fund-based facilities: affirmed at 'IND BB+'/Stable -- INR100.00m non-fund-based working capital: affirmed at 'IND BB+'/Stable/'IND A4+' =============== M A L A Y S I A =============== 1MALAYSIA: Confusion Over Valuation Casts Doubt on Restructuring ---------------------------------------------------------------- The Wall Street Journal reports that Malaysian Prime Minister Najib Razak in his New Year's message said a troubled state investment fund he created six years ago had resolved its debt problem. But critics of the fund, 1Malaysia Development Bhd., or 1MDB, have raised doubts about the progress in paying down the massive debt, increasing concerns that the state will have to step in with a bailout, the report says. The Journal relates that the 1MDB fund, whose advisory board is headed by Mr. Najib, announced last week that it is selling a majority stake in a real-estate project in Kuala Lumpur called Bandar Malaysia to a partly Chinese-owned consortium for MYR7.41 billion ($1.7 billion). According to the Journal, the sale is a central component of 1MDB's plan to auction land and power plants and swap borrowings for other assets in a bid to reduce its debt pile of more than $11 billion. After 1MDB announced the sale of Bandar Malaysia, Mr. Najib said the fund's problems were behind it, the report says. But China Railway Group, the parent of one of the buyers of the land, told regulators in Hong Kong this week that the consortium would pay only MYR5.28 billion for the consortium's stake in the Bandar Malaysia project, according to the report. Reuters relates that the 1MDB fund, in response to the discrepancy, said Jan. 6 that it had still not been decided whether the consortium would take over some of the debt owed by 1MDB units that hold the land. If the consortium does so, it would pay the lower valuation. If it doesn't take over the debt, it would pay the higher one, 1MDB said. China Railway Group didn't immediately respond to requests for comment, the Journal notes. "There is the risk of them getting lower than what they announced due to the lack of transparency," the Journal quotes Ng Weiwen, a Singapore-based economist with ANZ, as saying. "The uncertainty of the amount transacted will create an overhang to the Malaysia economy, which is already facing a tough time on declining oil prices." That uncertainty has raised concerns about the restructuring plan, with some opposition politicians saying the state is likely to have to step in to finance a bailout of 1MDB. The fund in the past year has rescheduled debt repayments, the report adds. "It is crucial for 1MDB to secure the highest possible valuation when stripping its assets in order to pay off its mountain of debt," the report quotes Tony Pua, an opposition politician who is a member of a parliamentary committee that is investigating 1MDB. "If not, then the government will have to step in to bail out the difference, which may well amount to billions of dollars." The Journal adds that Rafizi Ramli, another opposition lawmaker, said on Jan. 6 that if 1MDB "still fails to meet its restructuring target, the government will surely have to bail out the fund with its cash coffer." As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3 that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib, Reuters related. The TCR-AP, citing Bloomberg News, reported on Nov. 26 that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. =========== T A I W A N =========== GIGAMEDIA LTD: Regains NASDAQ Minimum Bid Price Rule ---------------------------------------------------- GigaMedia Limited, an online games and computing services provider, on Jan. 4 disclosed that on December 31, 2015, NASDAQ notified the Company that it has regained compliance with Rule 5550(a)(2), which requires a minimum bid price of $1.00 for continued listing on the NASDAQ Capital Market. As a result of satisfying the minimum bid price requirement, this matter is now closed. About GigaMedia Headquartered in Taipei, Taiwan, GigaMedia Limited -- http://www.gigamedia.com-- is a diversified provider of online games and cloud computing services. GigaMedia's online games business is an innovative leader in Asia with growing game development, distribution and operation capabilities, as well as platform services for games; focus is on mobile games and social casino games. The company's cloud computing business is focused on providing enterprises in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness. ********* 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 ***