/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160302.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, March 2, 2016, Vol. 19, No. 43 Headlines A U S T R A L I A AUSDRILL LIMITED: Moody's Retains B2 Rating on 1st-Half Results CL GOLD: First Creditors' Meeting Scheduled For March 9 HEALTH SERVICES: HSU Branch at Risk of Insolvency MICHELS CLAN: First Creditors' Meeting Slated For March 9 MISSION NEW ENERGY: Incurs $1.38MM Net Loss for Half Year 2015 NEDRILL BLASTING: First Creditors' Meeting Set For March 8 SLATER & GORDON: Under Bank Pressure to Settle Cases TRI NATION: First Creditors' Meeting Set For March 9 C H I N A JES INTERNATIONAL: To Sell Shipbuilding Units to Victo for $500K SKYSTAR BIO-PHARMA: Nasdaq to Complete Delisting, Filings Delayed H O N G K O N G MCE FINANCE: Moody's Revises Outlook on Ba3 CFR to Stable I N D I A ALLEPPEY COMPANY: CARE Reaffirms B+/A4 Rating on INR20.70cr Loan AMUL COTTON: CARE Reaffirms B+ Rating on INR6.50cr LT Loan ATRA PHARMACEUTICALS: CARE Lowers Rating on INR43.11cr Loan to D BISMAN INDUSTRIES: ICRA Reaffirms 'B+' Rating on INR8cr Loan BOCHEM HEALTHCARE: ICRA Assigns 'B' Rating to INR10cr Loan CONTROLS & SCHEMATICS: ICRA Reaffirms B/A4 Rating on INR12cr Loan DIAMANT INFRASTRUCTURE: CRISIL Cuts Rating on INR80MM Loan to C DISTRIBUTION LOGISTICS: ICRA Suspends D Rating on INR280cr Loan DWARKADHISH COTSPIN: ICRA Reaffirms B+ Rating on INR49.7cr Loan ELITE MOTORS: CARE Assigns B+ Rating on INR7.39cr Loan GARIB NAWAZ: CRISIL Lowers Rating on INR35MM Cash Loan to D GODAWARI COTTON: CRISIL Assigns B+ Rating to INR40MM Cash Loan JOGI FOOD: ICRA Suspends 'D' Rating on INR4.40cr Term Loan KERALA BALERS: CARE Reaffirms B+/A4 Rating on INR12cr Loan KINGSMEN FAIRTECH: CRISIL Assigns B+ Rating to INR150MM Loan KRISHNA FOOD: ICRA Suspends 'D' Rating on INR3.47cr Term Loan LIMTEX AGRI: ICRA Reaffirms B+ Rating on INR25cr Cash Loan MAA GAURI: ICRA Reaffirms 'B' Rating on INR4.90cr LT Loan MANGAL SHANTI: CARE Lowers Rating on INR10cr LT Loan to 'D' NARESH KUMAR: CRISIL Reaffirms B+ Rating on INR82.5MM Cash Loan NITTYAKALI RICE: CRISIL Assigns B+ Rating to INR35MM Cash Loan NUTRI AGROVET: CRISIL Assigns B+ Rating to INR50MM Cash Loan PAS TRADING: CRISIL Assigns B+ Rating to INR90MM Cash Loan PATCO FOODS: ICRA Suspends 'D' Rating on INR5cr Cash Loan PRIME TECHNOPLAST: CRISIL Cuts Rating on INR500MM Loan to D PROMPT TERMINALS: ICRA Assigns B+ Rating to INR20CR LT Loan R.K. PULSES: CRISIL Assigns 'B' Rating to INR60MM Cash Loan RA PARIKH: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating RAKSHIT ENGINEERING: Ind-Ra Suspends 'IND B-' LT Issuer Rating ROCKLINE CONSTRUCTION: CRISIL Assigns D Rating to INR36.5MM Loan S K PLASTIC: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating SAI CONSTRUCTION: Ind-Ra Suspends 'IND B' Long-Term Issuer Rating SANTARAM SPINNERS: CARE Reaffirms B+ Rating on INR2.8cr LT Loan SATYANARAYAN TEA: CARE Lowers Rating on INR24.27cr Loan to 'B' SAVITRIDEVI INDUSTRIES: CARE Assigns B+ Rating to INR9.19cr Loan SHIVA VEENER: Ind-Ra Suspends 'IND B+' Long-Term Issuer Rating SHREE HARI: Ind-Ra Suspends 'IND B' Long-Term Issuer Rating SHREE RADHA: CRISIL Assigns B+ Rating to INR25MM Cash Loan SHREE SANTOSH: ICRA Assigns B+ Rating to INR10cr Cash Loan SHREEJI FOOD: ICRA Suspends 'D' Rating on INR3.57cr Term Loan SHRI BALAJI: ICRA Upgrades Rating on INR65cr Term Loan to B SHRI RAMGINNING: CARE Assigns B Rating to INR9.80cr LT Loan SHRI ROKADOBAMAHARAJ: CARE Reaffirms B+ Rating on INR10.03cr Loan SITARAM MAHARAJ: CARE Lowers Rating on INR68.24cr LT Loan to 'D' SOLVAY VISHNU: CARE Assigns B+ Rating to INR17.20cr LT Loan SRAVYA INFRA: CRISIL Assigns B+ Rating to INR150MM LT Loan T BHIMJYANI: Ind-Ra Assigns BB+ Rating; Outlook Stable TRIKAAL LEASING: CARE Assigns 'B+ [FD]' Rating to INR2.87cr Loan TROY IFMR: Ind-Ra Puts BB- Rating on INR24.1MM Series A2 PTCs UNI SOURCCE: Ind-Ra Suspends 'IND BB+' Long-Term Issuer Rating UNIWORLD SUGARS: CARE Assigns 'B' Rating to INR75cr LT Loan VEDA BIOFUEL: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating VIJAY SABRE: ICRA Reaffirms 'C' Rating on INR10cr LT Loan VIKAS TECHNOPLAST: Ind-Ra Suspends 'IND BB-' LT Issuer Rating VINAYAKA ELECTROALLOYS: CRISIL Assigns B Rating to INR50MM Loan VINDHYA CEREALS: Ind-Ra Suspends 'IND B' Long Term Issuer Rating VISHRAMBHAI GORASIA: Ind-Ra Assigns 'IND B+' LT Issuer Rating VISHWAKARMA SCALES: CRISIL Assigns B Rating to INR55MM LT Loan VMD MILLS: Ind-Ra Ups LT Issuer Rating to 'IND BB-' YOGAA AND CO: Ind-Ra Raises Long-Term Issuer Rating to 'IND B+' J A P A N TOSHIBA CORP: Plans to Sell Entire Medical Unit N E W Z E A L A N D STONEWOOD HOMES: Collapse is a Wake Up Call for All Directors S R I L A N K A SRI LANKA: Fitch Cuts Long-Term Issuer Default Ratings to 'B+' X X X X X X X X * 2016 High-Yield Corporate Default Rate Will Stay at 3.2% - - - - - ================= A U S T R A L I A ================= AUSDRILL LIMITED: Moody's Retains B2 Rating on 1st-Half Results --------------------------------------------------------------- Moody's Investors Service said that Ausdrill Limited's ("Ausdrill", B1 negative) first half results for FY2016 (1H2016) are in line with expectations and hold no rating implications. The results also have no immediate impact on the B2 senior unsecured rating of Ausdrill Finance Pty Ltd and the outlook on all ratings is negative. "Ausdrill's leverage ratio, as measured by adjusted debt/EBITDA in the twelve months to Dec. 31, 2015, is within the range of 3.4x- 3.8x, as compared to a maximum tolerance for its current rating of 4.25x", says Matthew Moore, Moody's Senior Vice President and Credit officer. "Ausdrill has responded effectively to the very challenging market conditions by reducing debt and improving efficiency. Yet it has still managed to win new contracts", adds Moore. Moody's expects operating conditions to remain weak through 2016 and mining companies to continue to focus on cost savings while deferring non-essential capital expenditure. Ausdrill's focus on reducing cash outflows and debt -- it repaid $46.5 million in 1H16 -- as well as the benefits accruing from ongoing operational improvements therefore provide important support to its credit profile and rating. Ausdrill's credit profile also benefits from its large exposure to the Australian Gold sector, which has experienced less of a contraction in mining activity than other commodities. Moody's expects these positive factors to mitigate some of the operating environment pressures on the company's credit metrics, but in light of the severity of the collapse in commodity prices, the rating agency does not expect Ausdrill's credit metrics to improve materially from their current level. Moody's expects Ausdrill to maintain sufficient liquidity over the next 12 months, supported by its cash balances, undrawn credit facilities and reduced capital expenditure. The negative outlook on Ausdrill's ratings reflects the weakness in the commodity sector, which is expected to continue to pressure the company's credit profile for at least the next 12-18 months. WHAT COULD CHANGE THE RATINGS Downward rating pressure could emerge if operating conditions deteriorate beyond Moody's expectations or if the company is unable to reduce its debt, as indicated by debt-to-EBITDA above 4.25x. In addition, Moody's would consider downgrading the ratings if the company experiences significant contract losses or is unable to comply with the covenants in its syndicated facilities. On the other hand, the outlook could revert to stable if Ausdrill secures new contracts and increases revenue and earnings, such that gross adjusted debt-to-EBITDA remains comfortably below 3.25x on a sustained basis. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Ausdrill Limited was established in 1987 as a drill and blast company in the Australian mining services sector. It has since expanded into a vertically integrated provider of mining services to the resources industry in Australia and Africa, with in-house capabilities in manufacturing, logistics and supply. CL GOLD: First Creditors' Meeting Scheduled For March 9 ------------------------------------------------------- Steve Naidenov and David Iannuzzi of Veritas Advisory were appointed as administrators of CL Gold Coast Pty Ltd on Feb. 26, 2016. A first meeting of the creditors of the Company will be held at Level 12, 88 Pitt Street, in Sydney, on March 9, 2016, at 11:00 a.m. HEALTH SERVICES: HSU Branch at Risk of Insolvency ------------------------------------------------- Ben Schneiders and Royce Millar at The Age report that a scandal- plagued union run by the close friends and political allies of Opposition Leader Bill Shorten has been warned it risks insolvency after it spent heavily to defend senior union officials in a case involving forged documents. According to the report, the Health Services Union No. 1 branch in Victoria lost AUD1.6 million in 2014/15, and a similar amount the previous year. Once the one-off sale of its building is excluded, the HSU branch has lost nearly AUD3.2 million in two years as cash reserves plummeted, The Age relates. However, its embattled secretary and Mr. Shorten ally Diana Asmar was still paid the highest wage of any HSU official in Australia, nearly AUD180,000, says The Age. The Age notes that Fair Work Commission financial reporting advisor Ken Morgan, recently warned that the union regulator had "concerns about the ongoing solvency of the HSU-VIC1". According to The Age, Mr. Morgan said there were civil penalties for not acting in the best interests of a union and it was "incumbent on the officers of the union to take appropriate steps to address the net operating loss and ensure its ongoing solvency". Fairfax Media late last year revealed the role of the branch, which trades as the Health Workers Union, in Labor party branch stacking, the report recalls. The Age says documents show its computers were used to pay for multiple Labor memberships with anonymous gift cards. Ms Asmar's husband, David, is a central figure in a broader branch-stacking scam that engulfed Victorian Labor, the report states. Mr Asmar flew to Lebanon in September after he was told the royal commission into union corruption wanted to question him. He then said he was too ill to return, The Age relates. Fairfax Media understands he has since returned to Australia and was recently added to ballot papers as a candidate for internal Labor elections ahead of the party's state conference in April, according to The Age. The Age notes that while the Victorian branch of the union is not affiliated to the Labor Party, its leaders are linked to Mr Shorten through Ms Asmar and notorious former blogger Andrew Landeryou, a close friend of the Opposition Leader who has played a behind-the-scenes role at the union. Among those close to Mr Landeryou who have worked at the union include his wife, Kimberley Kitching, a former union general manager, and an assortment of Labor Right figures, often with chequered pasts, including David Saunderson, Scott Crawford and Dean Sherriff, The Age discloses. According to the report, Ms Asmar's election came after Mr Shorten, as workplace relations minister, launched legal action to put the dysfunctional union into administration. She won control of the branch later that year after a fiercely contested election against an ally of the corrupt Kathy Jackson. The Age says labor sources expect the No. 1 branch to eventually apply to reaffiliate with Victorian Labor, once the dust settles on its current scandals, and for it to align with the faction of Mr Shorten and federal frontbencher Stephen Conroy. In NSW, the HSU's largest branch recently decided to apply to rejoin Labor after a number of years outside the fold following the corruption scandals nationally involving Craig Thomson and Michael Williamson, the report says. In Victoria, the No. 1 branch remains mired in difficulties. The Age notes that the branch was in such a perilous situation a year ago it had cut staff numbers and wages. Despite the heavy pruning -- which reduced the wage bill by AUD500,000 -- its cash position collapsed from AUD2.4 million to AUD83,695 at the end of the last financial year. Its short-term debts are well in excess of short term assets --one measure of financial distress. It has spent large amounts on advertising and marketing, believed to include giant billboards of Ms Asmar near prominent roads, the report says. In a statement Ms Asmar denied her union was insolvent, The Age says. "I completely reject any commentary that we are not solvent. We pay our debts as and when they fall due." She said the union had a projected surplus of AUD500,000 this financial year, the report relates. The Age adds that Ms Asmar said the union had previously absorbed significant debts from "the mismanagement of previous corrupt union officials" and had suffered from an "inequitable de-amalgamation some years ago by the previous administrator of the HSU." She defended the billboards as a successful recruitment tool and defended her pay as being set by a previous administrator of the union, The Age adds. MICHELS CLAN: First Creditors' Meeting Slated For March 9 --------------------------------------------------------- Terrence John Rose and David Michael Stimpson of SV Partners were appointed as administrators of Michels Clan Pty Ltd on Feb. 26, 2016. A first meeting of the creditors of the Company will be held at SV Partners, 138 Mary Street, in Brisbane, Queensland, on March 9, 2016, at 2:30 p.m. MISSION NEW ENERGY: Incurs $1.38MM Net Loss for Half Year 2015 -------------------------------------------------------------- Mission New Energy Limited reported loss of $1.38 million on $18,233 of total revenue for the six months ended Dec. 31, 2015, 2015, compared to a profit of $28.67 million on $688,222 for the six months ended Dec. 31, 2014. As of Dec. 31, 2015, Mission New Energy had $7.20 million in total assets, $1.60 million in total liabilities and $5.60 million in total equity. A full-text copy of the Form 6-K is available for free at http://is.gd/mE1Gpu About Mission NewEnergy Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Mission NewEnergy reported profit of $28.4 million on $7.27 million of total revenue for the year ended June 30, 2015, compared to a loss of $1.09 million on $9.68 million of total revenue for the year ended June 30, 2014. "Although we incurred an operating profit for the year ended June 30, 2015 of A$28.3 million (2014: A$1.1 million loss), we have a history of net losses and there is a substantial doubt about our ability to continue as a going concern," the Company states in its annual report for the year ended June 30, 2015. NEDRILL BLASTING: First Creditors' Meeting Set For March 8 ---------------------------------------------------------- Christopher Powell and Nicholas Gyss of DuncanPowell were appointed as administrators of Nedrill Blasting Contractors Pty Ltd on Feb. 29, 2016. A first meeting of the creditors of the Company will be held at Paspalis Business Centre Darwin, Level 1, Paspalis Centrepoint, 48-50 Smith Street Mall, in Darwin, Northern Territory, on March 8, 2016, at 2:30 p.m. SLATER & GORDON: Under Bank Pressure to Settle Cases ---------------------------------------------------- Sarah Danckert, Lucy Battersby and Jonathan Shapiro at The Sydney Morning Herald report that Slater & Gordon will be under pressure to settle a swathe of cases in the next month to appease their bankers after delivering a horror write-down in its half-year results. The law firm's shares were smashed again on March 1 as analysts raised questions about Slater & Gordon's solvency, SMH relates. SMH relates that on Feb. 29, Slater & Gordon revealed a $958 million half year loss as a result of AUD876 million of write- downs, an amount three times larger than the sum of its profits, since it became the first law firm in the world to list on the stock exchange. According to the report, analysts at Macquarie Bank said the firm would be expected to settle as many cases as possible in the next month to soothe the concerns of its bankers. SMH says the analysts described Slater & Gordon's financial position as 'precarious' after it reported negative cash flows of AUD80 million, much worse than analysts had feared after the company warned in November that the measure would be negative $30 million to AUD40 million. According to SMH, the bulk of its cases are personal injury claims, although it has one shareholder class action against Newcrest mining close to settlement for AUD36 million. Slater & Gordon's banks National Australia Bank and Westpac, who have given the firm until April 30 to prove it can improve its cash flow position, will be receiving weekly cash flow updates from the company's financial advisors at McGrath Nicol, SMH says. The firm has also been struggling to cover its payroll costs in recent months with employee payments exceeding receipts by nearly $60 million, according to financial accounts, SMH relays. According to SMH, receipts from customer in the six months to December 31 were AUD534 million, while payments to suppliers and employees were AUD594 million. This was the first time employee costs exceeded receipts. National Australia Bank and Westpac are together owed about AUD800 million and have reserved their right to demand Slater & Gordon repay all of its debt by next year if the law firm can't settle enough cases during March and April this year, SMH discloses. This could lead to the 81-year-old law firm, with over 5000 employees, being placed into receivership, SMH notes. TRI NATION: First Creditors' Meeting Set For March 9 ---------------------------------------------------- Gavin Moss of Chifley Advisory Pty Ltd was appointed as administrator of Tri Nation Steel (WA) Pty Ltd, also trading as "Goldfields Steel Framing", on Feb. 28, 2016. A first meeting of the creditors of the Company will be held at The Regency Room, Tower Hotel Kalgoorlie, Corner of Bourke and Maritana Streets, in Kalgoorlie, on March 9, 2016, at 4:00 p.m. ========= C H I N A ========= JES INTERNATIONAL: To Sell Shipbuilding Units to Victo for $500K ---------------------------------------------------------------- DealStreet Asia reports that JES International Holdings, a shipbuilding and offshore engineering company, plans to sell its shipbuilding business to Hong Kong Victo International for an initial $500,000 in cash and a potential top-up after a year. According to the report, a filing said the conditional sale and purchase agreement with Victo will see JES International divest its ownership of Jiangsu Eastern Heavy Industry Co., Ltd (JEHI), Jiangsu New Eastern Marine Engineering Equipment Co., Ltd (JNEME) and 49% of the registered capital of Jiangsu Nereus Shipyard Co., Ltd (JNS), the shipbuilding business in question. DealStreet Asia says the companies have a fixed asset value of CNY1.53 billion ($235,4 million) as at 31 December 2014, with bank debts of about CNY1.96 billion ($301.6 million). As of December 2014, they maintain trade payables of CNY558.46 million ($85.9 million). As part of the terms, if the fixed asset value of the disposal companies is in excess of $1 million over their combined bank debt and trade payables one year after completion of the acquisition, Hong Kong Victo will pay JES an additional amount, the report relates. This amount is equal to 20 per cent of the net value of the disposal companies at that time, according to DealStreet Asia. According to DealStreet Asia, JEHI had earlier filed an application in the People's Republic of China (PRC) for a proposed restructuring scheme between JEHI and few creditors, a judicial decision of which is pending an appeal to the Jiangsu High People's Court, on the decision by the Taizhou Intermediate People's Court, Jiangsu Province. DealStreet Asia notes that the insolvency of the Chinese business units has led to problems in engaging and securing the commitment of investors, in addition to bank debts of the disposal assets being outstanding to their creditor banks and greatly exceeding the value of their fixed assets. Based on legal developments, the JES proceeded with the decision to divest their PRC business assets, following delays in a judicial decision to restructure the firm. The board of directors approved the sale, viewing it as benefiting shareholders while seeking new business to inject into JES, DealStreet Asia states. DealStreet Asia relates that notwithstanding known bank debts exceeding the fixed asset value of the assets being divested, JES has been able to negotiate for the consideration of $500,000 and the adjustment amount, ensuring that JES will be able to benefit from the terms of the proposed restructuring, if it is approved. The acquisition by Hong Kong Victo will also see them indemnifying the company against all liabilities, claims, costs, expenses and damages with regard to the assets from the time of the acquisition, adds DealStreet Asia. SKYSTAR BIO-PHARMA: Nasdaq to Complete Delisting, Filings Delayed ----------------------------------------------------------------- Skystar Bio-Pharmaceutical Company, a China-based manufacturer and distributor of veterinary medicine, vaccines, micro-organisms and feed additives, on Feb. 26 disclosed that The Nasdaq Stock Market ("Nasdaq") filed a Form 25 to complete the Company's delisting. The Company will be delisted from Nasdaq on March 4, 2016. The Company previously announced that, on December 17, 2015, the Company received notification from Nasdaq that a Nasdaq hearing panel had decided to delist the Company's securities from Nasdaq. Skystar continues to trade on the OTC Pink market under ticker 'SKBI.' Delinquent filings Following the filing and acceptance of its delinquent quarterly and fiscal year end reports with the Securities Exchange Commission pursuant to the Exchange Act of 1934, as amended, Skystar intends to continue to follow applicable Nasdaq listing standards, notwithstanding its delisting. As of the date of this release, the Company continues to make progress with the completion of its delinquent quarterly and annual reports and intends to file these reports with the SEC following their completed review with Skystar's external auditors. About Skystar Bio-Pharmaceutical Company Skystar -- http://www.skystarbio-pharmaceutical.com-- is a China-based developer, manufacturer and distributor of veterinary healthcare and medical care products. Skystar has four product lines: veterinary medicines, probiotics, vaccines and feed additives formulated and packaged in house across several modern manufacturing and distributions facilities. Skystar's distribution network includes almost 3,000 distribution agents of which 360 are franchised stores with exclusivity agreements covering 29 provinces throughout China. =============== H O N G K O N G =============== MCE FINANCE: Moody's Revises Outlook on Ba3 CFR to Stable --------------------------------------------------------- Moody's Investors Service has revised the outlook for MCE Finance Limited's Ba3 corporate family and senior unsecured bond ratings to stable from positive. At the same time, Moody's has affirmed the above ratings. RATINGS RATIONALE "The revision of the outlook for MCE Finance's ratings to stable from positive reflects our view that the potential for the company's ratings to be upgraded over the next 12-18 months is limited, given the ongoing weak operating environment in Macao's gaming market," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer. The declining trend in Macao's (Aa2 stable) gross gaming revenues has affected all gaming operators. But Moody's points out that MCE Finance has established profitable operations at the City of Dreams and maintained low debt leverage; factors which will enable it to operate through the downcycle. Moody's estimates that MCE Finance's adjusted debt/EBITDA was at around 2.1x in 2015. This ratio will stay at around 2.0x-2.5x over the next 1-2 years and will continue to support its Ba3 ratings. "Material improvements in its parent, Melco Crown Entertainment's financial profile appear unlikely in the near term," says Tsang who is also the Lead Analyst for MCE Finance. Melco Crown Entertainment Limited's (unrated) 60%-owned Studio City project, an integrated hotel and casino resort at Cotai, commenced operations only at end-2015. Moody's points out that Melco Crown Entertainment's financial profile over the next 12 months will therefore reflect Studio City's ramping up of its operations. Moody's estimates that Melco Crown Entertainment's adjusted debt/EBITDA rose to around 7.0x in 2015, due to increased debt and operating expenses -- including pre-opening expenses -- from the Studio City project, as well as lower EBITDA generation from MCE Finance. Moody's expects that Melco Crown Entertainment's adjusted debt/EBITDA will stay at around 4.0x-5.0x over the next 1-2 years, as Studio City ramps up gradually its operations in an environment of weak demand, and with the additional supply of two new casinos in the same Cotai area in 2016. MCE Finance's Ba3 corporate family rating reflects its established operations through Melco Crown (Macau) Limited (unrated) -- which is the key operating entity that holds the gaming concession -- and two major casino properties, Altira Macau and City of Dreams. However, the Ba3 corporate family rating is constrained by the group's geographic concentration and heavy reliance on the operations of its two major properties. The rating also considers Melco Crown Entertainment's consolidated financial position, because MCE Finance will use surplus cash -- after servicing payments under its secured bank loans and bonds -- to support its parent's cash needs. Moody's further notes that Melco Crown Entertainment has recently announced a special dividend of $350 million. Much of this payment will come from MCE Finance. Nevertheless, Moody's believes that MCE Finance's liquidity position is strong. Moody's estimates that MCE Finance held cash and deposits of around $1.5 billion at end-2015 and had access to undrawn banking facilities of $1.25 billion. This situation is adequate to cover the company's capex -- which Moody's estimates at $350-$400 million over the next 12 months -- its debt repayments of approximately $23 million and special dividends. The stable ratings outlook reflects Moody's expectation that MCE Finance will maintain its strong financial profile over the next 12-18 months, based on its mass market businesses and prudent financial management. Moreover, Moody's does not expect the company to fund another major distribution to its parent. MCE Finance's ratings could be downgraded if: (1) MCE Finance/Melco Crown Entertainment demonstrate operating performances that are significantly weaker than Moody's expects, due to a material slowdown in Macao's gaming market, or stronger- than-expected competition; (2) a major construction project is vested at MCE Finance, increasing its financial risk; or (3) Melco Crown Entertainment engages in significant debt-funded investments. Credit metrics indicating a possible downgrade in MCE Finance's ratings include debt/EBITDA in excess of 4.0x -- 4.5x or EBITDA/interest below 4x. On the other hand, upgrade pressure on the ratings could emerge if: (1) MCE Finance improves its financial profile such that its debt/EBITDA falls below 2.0x and EBITDA/interest exceeds 6.0x-7.0x on a sustained basis; and (2) Melco Crown Entertainment maintains stable credit metrics such that its consolidated debt/EBITDA falls below 3.5x and consolidated EBITDA/interest exceeds 5.5x-6.0x on a sustained basis. The principal methodology used in these ratings was Global Gaming Industry published in June 2014. MCE Finance Limited is a subsidiary of Melco Crown Entertainment Limited (unrated), which is in turn majority-owned by the Australian-based gaming operator, Crown Resorts Limited (Baa2 stable) and the Hong Kong-listed Melco International Development Ltd (unrated). Each of the two companies holds an approximate 34.3% equity stake in Melco Crown Entertainment. Through Melco Crown Gaming, MCE Finance holds one of six gaming concessions/sub-concessions in Macao and operates two casinos in the territory; namely, Altira Macau and City of Dreams, as well as approximately 1,300 slot machines in Macao through its Mocha Clubs. ========= I N D I A ========= ALLEPPEY COMPANY: CARE Reaffirms B+/A4 Rating on INR20.70cr Loan ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of the Alleppey Company Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short- term 20.70 CARE B+/CARE A4 Bank Facilities Reaffirmed Rating Rationale The ratings of The Alleppey Company Limited (ACL) continue to be constrained by the underutilization of capacity and modest scale of operations, fluctuating profit margin with history of losses although the loss incurred in FY15 (refers to the period April 1 to March 31) was comparatively lesser than FY14. The ratings are further constrained by the working capital intensive nature of operations, exposure to foreign currency risk, and limited pricing flexibility on account of competition from the unorganized sector. The ratings however, derive comfort from the long experience of the promoters in the manufacturing of coir products, established market position derived from long track record of the company and the long association with renowned customers. Going forward, the company's ability to increase the scale of operation and improve profitability in the intensely competitive industry, and manage its working capital borrowings effectively, would be the key rating sensitivities. The Alleppey Company Limited (ACL) is the flagship company of the Karan Group which has interests in manufacture of coir mats, mattings, rugs, sisal, jute and sea grass. ACL was established in 1927 as coir yarn traders. The installed capacity of the company is 15 lakh square meters as of December 31, 2015. The other two companies in the group are Kerala Balers Pvt. Ltd (CARE B+/CARE A4 reviewed on February 2016)and William Goodacre & Sons India Ltd. which are also in the same line of business. Mr Revi Karunakaran(S/o Mr Keerthi Karunakaran), established the first mechanical coir-based production unit in 1965. In 1991, KG pioneered the making of PVC coir mats in India. KG has its headquarters in Alleppey (Kerala) with 8 manufacturing units (owned) and 6 ware housing facilities (rented) spread across the states of Tamil Nadu and Kerala. ACL has an integrated factory for weaving of natural fibre floor coverings. The raw material, coir is purchased from dealers, who in turn procure it from local farmers. The finished products are sold predominantly in export market such as North America and Western Europe. The company has incurred net loss of INR0.09 crore in FY15 on total operating income of INR52.44 crore as compared to a net loss of INR0.94 crore on total operating income of INR 42.44 crore in FY14 (refers to the period April 1 to March 31). The company achieved sales of INR32.12 crore in 1FY16 (Provisional, refers to the period April 1 to September 30). AMUL COTTON: CARE Reaffirms B+ Rating on INR6.50cr LT Loan ---------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Amul Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.50 CARE B+ Reaffirmed Rating Rationale The rating assigned to the bank facilities of Amul Cotton Industries (ACI) continues to remain constrained on account of the decline in total operating income during FY15 (refers to the period April 1 to March 31) coupled with thin profit margins, leveraged capital structure and weak debt coverage indicators. The rating is further constrained due to susceptibility of profit margins to cotton price fluctuations, seasonality associated with the cotton industry and the firm's presence in the highly fragmented cotton ginning and pressing industry with limited value addition resulting into working-capital intensive nature of operations coupled with limited financial flexibility owing to partnership nature of constitution. The rating, however, continues to draw strength from the wide experience of the partners in the cotton ginning business coupled with location advantage in terms of proximity to the cotton growing regions in Gujarat. ACI's ability to increase its scale of operations coupled with improvement in profit margins while managing fluctuation in profitability in light of the volatile raw material prices and further improvement in the capital structure as well as liquidity profile remain the key rating sensitivities. Amreli-based (Gujarat) ACI is a partnership firm established in 2006. The firm is promoted by Mr Saukatali Gangani and Mr Najimali Gangani along with other family members with an unequal profit and loss sharing agreement among them. ACI is primarily engaged in cotton ginning & pressing activities with an installed capacity of 200 cotton bales per day as on March 31, 2015, and operates from its sole manufacturing facility located at Babra Amreli (Gujarat). ACI deals in Shankar- 6 cotton which is being sourced through local farmers from Gujarat. During FY15 (A), ACI reported a TOI of INR32.28 crore and PAT of INR0.06 crore as against TOI of INR55.77 crore and PAT of INR0.07 crore during FY14 (A). During 10MFY16 (Provisional), ACI achieved TOI of around INR33.78 crore. ATRA PHARMACEUTICALS: CARE Lowers Rating on INR43.11cr Loan to D ---------------------------------------------------------------- CARE revises the rating assigned to bank facilities of Atra Pharmaceuticals Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 43.11 CARE D Revised from CARE B+ Short term Bank Facilities 4.00 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Atra Pharmaceuticals Limited (APL) factors in the ongoing delays in debt servicing with respect to principal repayment and interest payments on the term loan account. APL, incorporated in 1991, is managed by Commander Anil M. Save (ex-Indian Navy), who is the Managing Director (MD) of the company since inception. APL is primarily into manufacturing of pharmaceuticals, formulations branded generics, generics and herbals and probiotics and trading of bulk drugs. The company has manufacturing facilities at Aurangabad (Maharashtra) which meets current good manufacturing practices (cGMP) norms laid down by the World Health Organization. APL is primarily into contract manufacturing, domestic sales and export of oral solid dosages (OSD) in nutritional, cardiovascular, urology, ARV, NSAID, dental care, anti-diabetic and anti-malarial therapeutic segments. It undertakes contract manufacturing for some of the global pharmaceutical giants such as Merck, Serdia Pharmaceuticals Private Limited, Mylan Laboratories Limited etc. The company manufactures popular brands such as Diamicron, Neurobion Forte, Livogen, Coversyl and Polybion tablets for its customers. APL sells its final products to pharmaceutical companies, while raw materials are procured either from dealers or pharmaceutical companies. BISMAN INDUSTRIES: ICRA Reaffirms 'B+' Rating on INR8cr Loan ------------------------------------------------------------ ICRA has reaffirmed the [ICRA]B+ rating of the INR8.00 crore fund- based facilities and INR0.20 crore non fund based facilities of Bisman Industries Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Cash Credit 8.00 [ICRA]B+ reaffirmed Non Fund Based 0.20 [ICRA]B+ reaffirmed The rating reaffirmation continues to take into account the significant deterioration in the financial risk profile of the Limtex group as a whole, primarily the flagship company Limtex India Limited (rated at [ICRA]D/D), which incurred significant cash losses during FY15 primarily due to increase in tea procurement cost relative to its tea realization. The rating also factors in the low profitability of the company on account of the trading nature of the tea operations, which account for 96% of the total revenues; the further deterioration in the operating profitability of BIL during FY15 owing to higher input costs for biscuits manufacturing; and the inability of the company to pass on the same owing to intense competition. The rating is further constrained by the aggressive capital structure of the company, however, a large part of the debt is in the form of interest free unsecured loans from promoters; and the highly working capital intensive nature of operations, which exerts pressure on the liquidity position of the company, as reflected by almost full utilization of the working capital limits every month. The ratings, however, also continue to factor in the experience of the promoters in the tea and biscuits industry and its established distribution network in Eastern India which supports the revenue growth. Bisman Industries Limited (BIL) was established in the year 1988 by Mr. Subhash Kumar Poddar in the name of Limtex Industries Ltd having its registered office at Kolkata. The company is engaged in manufacturing of biscuits and trading of tea in the domestic markets, primarily East India. BIL has a biscuit manufacturing unit in Asansol, West Bengal, with an installed production capacity of 1500 MTPA and has a warehousing unit in Kolkata for blending of tea. BIL sells both biscuits and tea under the brand "Nargis". Recent Results The company reported an operating income (OI) of INR40.64 crore and a net profit of INR0.01 crore during FY15 as compared to an OI of INR35.61 crore and a PAT of INR0.26 crore during FY14 BOCHEM HEALTHCARE: ICRA Assigns 'B' Rating to INR10cr Loan ---------------------------------------------------------- ICRA has assigned its long-term rating of [ICRA]B to the INR21.72 crore bank facilities of Bochem Healthcare Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits-CC 10.00 [ICRA]B; assigned Fund-based-Term Loans 6.72 [ICRA]B; assigned Non fund based limits 5.00 [ICRA]A4; assigned ICRA's ratings factor in BHPL's limited track record of the operations with plant getting operational in FY13. The ratings also take into account the high leverage and weak coverage indicators (Gearing of 5.38x as on March 31, 2015, Net Cash Accruals/Debt of 9% in FY 2015, Interest coverage of 2.3x in FY 2015) owing to the debt funded capex undertaken and pending ramp up of capacity utilization. The working capital intensity of the company remains high (NWC/OI of 61% in FY2014 and 58% in FY2015) largely on account of elongated receivable and inventory cycle which has resulted in stretched liquidity. While the demand prospects remain stable for medicines in the country, BHPL remains exposed to high competition from various large and small sized players. ICRA, however, takes comfort from the healthy demand prospects for various iron tablets and ORS on the back of increased healthcare initiatives by government, which provides growth visibility to the company. The ratings also draw comfort from the experience promoters of the company. Going forward, the company's ability to manage its funding requirements and improve its liquidity situation will be the key rating sensitivities. Further, the company's ability to increase its scale of operations and improve its coverage indicators will also be key monitorables. Bochem Healthcare Pvt Ltd (BHPL) is incorporated in the year 2013 in Ujjain, Madhya Pradesh. BHPL is engaged in the manufacture of formulation in various dosage forms, ie, tablets, capsules and ORS (General group) at its WHO GMP certified facility at Nagziri, Ujjain. The company is promoted by Mr. Sunil Kumar Jain. Recent results BHPL reported a net profit of INR0.34 crore on an operating income of INR42.86 crore in FY 2015, as compared to a net profit of INR0.64 crore on an OI of INR36.84 crore in the previous year. CONTROLS & SCHEMATICS: ICRA Reaffirms B/A4 Rating on INR12cr Loan ----------------------------------------------------------------- ICRA has reaffirmed the long-term rating at [ICRA]B and short term rating at [ICRA]A4 assigned to the INR0.60 crore term loan and INR4.00 crore fund-based limits and INR12.00 crore non-fund based limits and INR0.40 crore proposed limits of Controls & Schematics Limited. The re-affirmation of ratings takes into account CSL's weak business risk profile characterized by poor order book visibility owing to reduced demand, particularly from the company's main customer viz. BHEL, which accounts for more than 90% of its overall sales and intense competitive pressures from larger established entities, which benefit from backward integration in manufacturing of switchgear components. The ratings are also tempered by CSL's high working capital intensity in the business, its small scale of operations and vulnerability of profitability to any adverse fluctuations in raw material/bought-out prices, given the 'fixed-price' nature of most of the supply contracts. The company's ability to improve its order book position as well as to ensure timely execution of these orders within the budgeted costs remains crucial from the credit perspective. The rating also takes into consideration sharp de-growth in operating income and weakening in debt-protection metrics. The ratings, however, favourably factor in the longstanding experience of the company's promoter in manufacturing of control equipments and its reputed client profile along with pre-qualification status obtained from various PSUs and private companies. Controls and Schematics Ltd. (CSL) was incorporated in 1971 as a partnership firm by Mr. P.P. Reddy, Mr. A.A. Raje, Mr. A.M. Bendrey, Mr. K.S. Reddy, Mrs. Lalitha Rajmal Davda and Mrs. Vimal Deshmukh. The company undertakes total turnkey orders of Low Tension Switchgear projects comprising of supply of equipments like Motor Control Centre (MCC), Power Control Centre (PCC), Bus Ducts, Distribution Boards and Push Button stations for process industries and their erection and commissioning. Historically, the company has maintained its focus towards the customers in power sector and, to some extent, in refineries & petrochemicals. The turnkey orders include design, engineering, manufacturing, supply, erection and commissioning. At present, the company has only one operational manufacturing facility at Hyderabad. Recent Results For FY 2015, CSL has reported a profit after tax (PAT) of INR0.48 crore on an operating income of INR26.3 crore. During nine month period ending December 2015, the company reported a PAT of INR0.1 crore on an operating income of INR6.3 crore. DIAMANT INFRASTRUCTURE: CRISIL Cuts Rating on INR80MM Loan to C --------------------------------------------------------------- CRISIL has downgraded its rating on the long term bank facilities of Diamant Infrastructure Limited (DIL) to 'CRISIL C' from 'CRISIL B+/Stable', while reaffirming its rating on the short term bank facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Cash Credit 80 CRISIL C (Downgraded from 'CRISIL B+/Stable') Proposed Long Term 40 CRISIL C (Downgraded from Bank Loan Facility 'CRISIL B+/Stable') The downgrade reflects consistent delays by DIL in servicing its debt (not rated by CRISIL) owing to liquidity constraints. This emanates from a decline in demand owing to the ongoing slowdown, leading to a sharp revenue decline. CRISIL's ratings on the bank facilities of Diamant Infrastructure Ltd (DIL) reflect DIL's customer concentration in company's order book, and risks associated with working-capital-intensive nature of operations. These rating weaknesses are partially offset by DIL's moderate gearing and healthy debt protection metrics. DIL, established in 1980, is a Nagpur based player, engaged in the infrastructure business in India primarily as a sub-contractor in the road sector. The company registered a net loss of INR4 million on net sales of INR530 million in 2014-15, against a profit after tax of INR0 on net sales of INR570 million in 2013-14. DISTRIBUTION LOGISTICS: ICRA Suspends D Rating on INR280cr Loan --------------------------------------------------------------- ICRA has suspended the [ICRA]D rating outstanding on INR280.0 crore term loans and INR30.0 crore proposed facilities of Distribution Logistics Infrastructure Private Limited (erstwhile Vikram Logistic and Maritime Services Private Limited). The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Distribution Logistics Infrastructure Private Limited (DLIPL, erstwhile Vikram Logistic and Maritime Services Limited) was originally promoted as a partnership firm in 1972 to undertake material handling, and subsequently container movement and road transportation services. It was converted to a private limited company in 1992 and took its present name in 2006. In 2011, through share swap agreements with the promoters and private equity investors, DLIPL became a wholly owned subsidiary of Infrastructure India Plc (IIP), a company incorporated in the Isle of Man to invest in infrastructure assets in India. It is currently implementing a project to set up and operate a Free Trade and Warehousing Zone in Chennai, an Inland Container Depot (ICD) in Bangalore, an ICD in Hassan and domestic terminals (DTs) at all these three locations. In March 2013, DLIPL completed the acquisition of the logistics division of ETA Engineering Private Limited, which consists of container train operations and planned ICDs/DTs at Nagpur and Palwal. DWARKADHISH COTSPIN: ICRA Reaffirms B+ Rating on INR49.7cr Loan --------------------------------------------------------------- ICRA has reaffirmed the [ICRA]B+ rating to INR14.00 crore fund- based cash credit facility and INR49.70 crore term loan facility of Dwarkadhish Cotspin Private Limited. A rating of [ICRA]A4 has also been reaffirmed to the INR3.00 crore short term non fund based bank guarantee facility and INR0.44 crore of derivative facility of DCPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 49.70 [ICRA]B+ reaffirmed Cash Credit 14.00 [ICRA]B+ reaffirmed Bank Guarantee 3.00 [ICRA]A4 reaffirmed Credit Exposure Limit 0.44 [ICRA]A4 reaffirmed The rating reaffirmation takes into account significant experience of the promoter in cotton ginning and spinning industry. The rating further takes into account improvement in profitability and return indicators of the company; capacity enhancement with installation of additional 10,000 spindles with compacts which will enable the company to manufacture better quality yarn which is likely to improve sales realizations. ICRA also takes note of various fiscal benefits that the company avails in terms of interest subsidy and VAT subsidy as well as subsidized power tariffs resulting in relatively comfortable margins. Further, the ratings continue to be constrained by debt funded capital expenditure undertaken by the company and high working capital intensity of operations which is expected to keep the capital structure and credit metrics stretched in near term. ICRA further notes the highly competitive business environment given the fragmented nature of cotton industry thus limiting the company's ability to fully pass on the increase in raw material prices; demand fluctuation on account of cyclical nature of textile industry and vulnerability of profitability to unexpected movements in cotton prices which are in turn subject to seasonality and crop harvest. Incorporated in May 2011 , Dwarkadhish Cotspin Private Limited (DCPL) is engaged in the business of cotton yarn spinning with 24,688 spindles having capacity to manufacture 13-15 MTPD of 30s,32s and 40s of combed hosiery yarn as well as compact combed hosiery yarn. The manufacturing facility is located at Chuli, Dist. Surendranagar, Gujarat. Recent Results For the year ended March 31, 2015, Dwarkadhish Cotspin Private Limited achieved an operating income of INR69.02 crore and profit after tax of INR5.70 crore as per the audited financials. ELITE MOTORS: CARE Assigns B+ Rating on INR7.39cr Loan ------------------------------------------------------ CARE assigns 'CARE B+' ratings to the bank facilities of Elite Motors Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 7.39 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Elite Motors Pvt Ltd is constrained by working capital intensive nature of operations stretching the company's liquidity, thin profitability as is inherent in the industry accentuated by intense competition from other auto dealers, exposure to cyclicality associated with the auto industry and declining operating income. However, the rating derives strength from reasonable track record of the promoters in the automobile dealership business, lineage from strong brand image of Volkswagen (VW), infusion of funds by the promoters in the form of unsecured loans to support its operations. Going forward, ability of the company to scale its operations amid high competition and effectively manage its working capital requirements would remain the key rating sensitivities. Elite Motors Private Limited (EMPL) was promoted by Mr Gurjit Singh and Mrs Sonia Singh in September 2007. EMPL is an authorized dealer for passenger vehicles (PV) of Volkswagen India Private Limited (VIPL). The company has entered into a dealership agreement with VIPL in 2007 for sales of Volkswagen cars, spares and accessories and as an authorized service centre for Volkswagen four wheelers. It operates through one show room and one yard having a capacity of parking 500 cars in Bangalore. The showroom is occupied on leased premises and is equipped with 3-S facilities (Sales, Service and Spare-parts). Elite group was established in Bangalore in the year 1975 with the business in trading of crockery and consumer durables. In the year 2005, the group diversified into automobiles and since then established three dealerships for Honda, Ford and Volkswagen. During FY15 (refers to the period April 1 to March 31), the company registered a PAT of INR0.11 crore (FY14: INR0.64 crore) on a total operating income of INR58.87 crore (FY14: INR52.41 crore). GARIB NAWAZ: CRISIL Lowers Rating on INR35MM Cash Loan to D ----------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Garib Nawaz Polymers Private Limited (GNPPL; part of the GN group) to 'CRISIL D' from 'CRISIL C'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL D (Downgraded from 'CRISIL C') Funded Interest 11.4 CRISIL D (Downgraded from Term Loan 'CRISIL C') Proposed Long Term 12.4 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL C') Term Loan 24.2 CRISIL D (Downgraded from 'CRISIL C') Working Capital 27 CRISIL D (Downgraded from Term Loan 'CRISIL C') The downgrade reflects recent instances of delay by the GN group in meeting debt obligation due to weakened liquidity because of significant stretch in receivables. The GN group also has a weak financial risk profile because of poor debt protection metrics and high gearing, small scale of operations in the intensely competitive packaging industry, and large working capital requirement. For arriving at its rating, CRISIL has combined the business and financial risk profiles of GN Pet (GNP) and GNPPL. This is because the two entities, together referred to as the GN group, are in the same line of business, have close operational and financial linkages, and are under a common management. GNPPL, set up in 2007 by Mr. Sunil Bansal, manufactures polyethylene terephthalate bottles for consumers in the pharmaceuticals industry. It commenced commercial operations in 2008. In 2009, Mr. Bansal set up proprietorship concern GNP, which is in the same line of business and commenced commercial operations in 2011. Both entities' manufacturing facilities are in Baddi. GODAWARI COTTON: CRISIL Assigns B+ Rating to INR40MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Godawari Cotton Industries (GIC). The rating reflects below-average financial risk profile because of high gearing and weak debt protection metrics, and susceptibility to raw material price fluctuations and unfavorable changes in government policy. These rating weaknesses are mitigated by the promoter's extensive industry experience and prudent working capital management. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B+/Stable Outlook: Stable CRISIL believes GIC will continue to benefit from its promoter's extensive industry experience and financial support over the medium term. The outlook may be revised to 'Positive' if revenue and profitability improve while prudently managing the working capital and capital structure. Conversely, the outlook may be revised to 'Negative' if the working capital management deteriorates or liquidity weakens significantly, because of lower- than-expected cash accrual, or if a large, debt-funded capital expenditure programme, weakens the capital structure. GCI was formed in July 2003 as a proprietorship firm. The firm is promoted and managed by Mr. Ashish Mohanlal Tayal. The firm gins and presses raw cotton and sells cotton bales, cotton seeds and oil produced from cotton seeds. Its manufacturing unit is located at Aurangabad. GCI supplies cotton bales to spinning mills (through agents) and cotton seeds to oil extracting units. JOGI FOOD: ICRA Suspends 'D' Rating on INR4.40cr Term Loan ---------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR4.50 crore facilities of Jogi Food Processing. The suspension follows ICRAs inability to carry out a rating surveillance due to non cooperation from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan Limit 4.40 [ICRA]D suspended Credit Exposure Limits 0.10 [ICRA]D suspended JFP, a proprietorship firm, is a part of the 'Patco' group of companies, established in 2010 to manufacture various ready-to-eat food products. The group is promoted by Mr. Matur Savani, Mr. Rakesh Patel and Mr. Lalji Patel. PFPL is the flagship company of the group while the rest three associate firms namely M/s Jogi Food Processing, M/s Krishna Food Processing and M/s Shreeji Food Processing operates on a job work basis for PFPL. The manufacturing facility of all the four companies are located in a single premise spread over 58 acres of land. JFP has a biscuit (various types) manufacturing of 7,500TPA. KERALA BALERS: CARE Reaffirms B+/A4 Rating on INR12cr Loan ---------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Kerala Balers Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short-term 12 CARE B+/CARE A4 Bank Facilities Reaffirmed Short-term Bank Facilities 12 CARE A4 Reaffirmed Rating Rationale The ratings of Kerala Balers Private Limited (KBPL) are constrained by the underutilization of capacity and modest scale of operations, and fluctuating profit margin with history of losses, although the loss incurred in FY15 (refers to the period April 1 to March 31) was comparatively lesser than FY14. The ratings are further constrained by the working capital intensive nature of operations, exposure to foreign currency risk and limited pricing flexibility on account of competition from the unorganized sector. The ratings derive comfort from the long experience of the promoters in the manufacturing of coir products, established market position derived from the long track record of the company and long association with renowned customers. Going forward, the ability of the company to increase the size of operation and improve profitability in the intensely competitive industry, and manage its working capital requirements effectively will be the key rating sensitivities. KBPL is the flagship company of the Karan Group which has interests in manufacture of coir mats, mattings, rugs, sisal, jute and sea grass. The installed capacity of the company is 12 lakh Sq. Meter. as on December 31, 2015. Karan group (KG) was established in late 1800s by Mr Keerthi Karunakaran and was initially engaged in coir yarn spinning. KBPL was established in 1948 with the objective of spinning coir yarn. The other two companies in the group are The Alleppey Company Limited ('CARE B+/CARE A4' reviewed on February 2016) and William Goodacre & Sons India Ltd which are also in the same line of business. Mr Revi Karunakaran (S/o Mr Keerthi Karunakaran), established the first mechanical coir-based production unit in 1965. In 1991, KG pioneered the making of PVC coir mats in India. KG has its headquarters in Alleppey (Kerala) with 8 manufacturing units (owned) and 6 warehousing facilities (rented) spread across the states of Tamil Nadu and Kerala. KBPL has an integrated factory for weaving of natural fibre floor coverings. The raw material, coir is collected from dealers, who in turn procure it from local farmers. The finished products are sold predominantly in export market such as North America and Western Europe. The company has incurred net loss of INR0.42 crore in FY15 on total operating income of INR60.09 crore as compared to a net loss of INR2.25 crore on total operating income of INR 50.26 crore in FY14 (refers to the period April 01 to March 31). The company achieved sales of INR30.19 crore in H1FY16(Provisional, refers to the period April 01 to September 30). KINGSMEN FAIRTECH: CRISIL Assigns B+ Rating to INR150MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Kingsmen Fairtech Interiors Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 102.5 CRISIL A4 Cash Credit 150 CRISIL B+/Stable The ratings reflect the extensive experience of the company's promoters in the interior designing and execution business, and benefits derived from association with Kingsmen Creative Ltd, Singapore. These rating strengths are partially offset by a below- average financial risk profile because of high gearing and a small net worth, and exposure to risks relating to the tender-based nature of its business. Outlook: Stable CRISIL believes KFIPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of significant and sustained increase in revenue and accruals along with improved working capital management and capital structure leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of a considerable decline in revenue or accrual, large, debt-funded capital expenditure, or a stretched working capital cycle, leading to deterioration in the financial risk profile. Incorporated in 2010, KFIPL provides end-to-end interior design solutions for corporate clients. The company is a joint venture between Delhi-based Mr. Ajay Kumar Kapoor and the Singapore-based Kingsmen group. The company primarily provides interior design services for retail showrooms and exhibition stalls, and has recently also ventured into designing museums for government authorities. KRISHNA FOOD: ICRA Suspends 'D' Rating on INR3.47cr Term Loan ------------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR3.57 crore facilities of Krishna Food Processing. The suspension follows ICRAs inability to carry out a rating surveillance due to non cooperation from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan Limit 3.47 [ICRA]D suspended Credit Exposure Limits 0.10 [ICRA]D suspended KFP is a part of 'Patco' group of companies, established in 2010 to manufacture various ready-to-eat food products. The group is promoted by Mr. Matur Savani, Mr. Rakesh Patel and Mr. Lalji Patel. PFPL is the flagship company of group while the rest three associate firms namely M/s Jogi Food Processing, M/s Krishna Food Processing and M/s Shreeji Food Processing operate on job work basis for PFPL. The manufacturing facility of all the four companies are located in a single large campus spread over 58 acres of land. KFP is a proprietorship firm engaged in the manufacturing of spices, khakara & papad and sorting & repacking of tea. The installed capacity of the firm is 10800TPA, 300TPA and 4500TPA for spices, tea and Khakara & papad respectively. LIMTEX AGRI: ICRA Reaffirms B+ Rating on INR25cr Cash Loan ---------------------------------------------------------- ICRA has reaffirmed the [ICRA]B+ rating of the INR25.00 crore (revised from INR23.00 crore), and INR0.50 crore (revised from INR0.40 crore) non fund-based facilities of Limtex Agri Udyog Limited. ICRA has also reaffirmed the [ICRA]A4 rating of the INR8.00 crore non fund-based facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits Cash Credit 25.00 [ICRA]B+ reaffirmed Non Fund Based 0.50 [ICRA]B+ reaffirmed Non Fund based Letter of Credit 8.00 [ICRA]A4 reaffirmed The ratings reaffirmation continues to take into account the significant deterioration in the financial risk profile of the Limtex group as a whole, primarily the flagship company Limtex India Limited (rated at [ICRA]D/D), which incurred net cash losses during FY15 primarily due to increase in tea procurement cost relative to its tea realization. The ratings also factor in the deterioration in the operating profitability of LAUL during FY2015 on account of increase in input cost, adversely impacting the debt-coverage indicators of the company. In addition, the capital structure continues to remain adverse as reflected by a gearing of around 1.87 times as on 31st March, 2015. ICRA further notes that the limited value addition as well as intense competition in the tea trading business limits the scope of margin expansion to a large extent. In addition, the highly working capital intensive nature of operations exerts pressure on the liquidity position of the company, as also reflected by almost full utilization of the working capital limits every month. LAUL is also engaged in tea production out of leaves procured from small growers, which increases the risks related to availability, quality and prices of green leaves procured. The ratings, however, also continue to factor in the experience of the promoters in the tea industry. LAUL was incorporated as a private company in 2003, by Mr. Gopal Poddar. The company owns a bought leaf tea plant and is primarily engaged in manufacturing of CTC variety of tea as well as blending and trading of tea in the domestic market. The factory is located at Bidhan Nagar, Siliguri with a total installed capacity of 30 lakh kgs per annum. Recent Results The company reported an operating income (OI) of INR126.78 crore and a net profit of INR0.25 crore during FY15 as compared to an OI of INR115.08 crore and a PAT of INR0.91 crore during FY14 MAA GAURI: ICRA Reaffirms 'B' Rating on INR4.90cr LT Loan --------------------------------------------------------- ICRA has re-affirmed the long-term rating assigned to the INR9.00 crore fund based bank facilities of Maa Gauri Poultry Private Limited (MGPPL) at [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limit (TL) 4.90 [ICRA]B Re-affirmed Long Term Fund Based Limit (CC) 4.10 [ICRA]B Re-affirmed The assigned rating continues to be constrained by MGPPL's weak financial profile as indicated by high gearing levels, thin net margins and weak coverage indicators. The rating is further constrained by the company's strained cash flows and inherent weaknesses in the form of seasonal demand and susceptibility to risks like disease outbreak. ICRA also takes note of the fragmented industry structure with presence of various unorganised players which limits pricing flexibility and also the exposure of margins to feed price fluctuations. The rating, however, favourably factors in the long standing experience of promoters in the poultry industry. Incorporated in 2006, Maa Gauri Poultry Private Limited (MGPPL) is family managed company engaged in the production of table eggs and trading in wheat, paddy, rice, animal feed and poultry feed. The company is based out of Nagpur and sells the eggs to nearby distributors and traders. The promoter family has been in the poultry business since 1996. For the full year FY15, the firm reported a net loss of INR0.02 crore on a topline of INR40.60 crore, as compared to a profit after tax of INR0.34 crore on a topline of INR41.29 crore in the previous year. MANGAL SHANTI: CARE Lowers Rating on INR10cr LT Loan to 'D' ----------------------------------------------------------- CARE revises ratings to the bank facilities of Mangal Shanti Development Corporation. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 10.00 CARE D Revised from CARE B Rating Rationale The ratings assigned to the bank facilities of Mangal Shanti Development factors in the ongoing delays in debt servicing with respect to interest payments on the term loan account. Established in the year 2010, Mangal Shanti Development Corporation (MSDC) is a partnership firm of the members of the Gundecha and Bathiya family who are stakeholders inMangal Builders, Pune and Hazel properties, Pune respectively. Mangal Builders is a part of Pune based Mangal-Shanti Group engaged in real estate development promoted by Mr. Ashok Gundecha and his son Mr. Rajesh Gundecha. The promoters have been involved as real estate investors and aggregators over the last three decades. The group has been engaged in real estate development over the last five years and has completed projects over 3 lakhs square feet (lsf). over the last five years and has completed projects over 3 lakhs square feet (lsf). Project Details: MSDC is currently developing a residential project "Mansha" in Wagholi, Pune comprising 1.5BHK & 2BHK, with a total saleable area of 2.32 lsf which includes three buildings A, B and C with a total of 223 flats. The estimated project cost is about INR56.71 crore and is proposed to be funded with a debt of INR10.00 crore, promoter's funds of INR10.00 crore and balance through customer advances of INR36.71 crore. The construction of the project commenced in May, 2014 and is expected to be completed by November, 2017. As on Q3FY16, the firm has expensed out about INR 6.63 crore funded by promoter's contribution. NARESH KUMAR: CRISIL Reaffirms B+ Rating on INR82.5MM Cash Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Naresh Kumar Rajendra Kumar (NKRK) continues to reflect the firm's modest scale of operations marked by geographical concentration in its revenue profile, and susceptibility of profitability to raw material price volatility and intense competition. The rating also factors in a modest financial risk profile. These rating weaknesses are partially offset by the extensive experience of the firm's promoters in the agricultural (agro) trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 82.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes NKRK will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of more-than-expected increase in revenue and profitability, or significant improvement in capital structure and working capital management. Conversely, the outlook may be revised to 'Negative' in case of a decline in profitability or revenue, resulting in lower-than-expected cash accrual, substantial debt-funded capital expenditure, or a stretched working capital cycle, leading to deterioration of the financial risk profile. NKRK was originally set up in 1980 as a proprietorship firm by Mr. Mahaveer Prasad Vijay. In 2011, the firm was reconstituted as a partnership firm with Mr. Naresh Kumar Vijay and Mr. Rajendra Kumar Vijay (sons of Mr. Mahaveer Prasad Vijay) joining as partners. NKRK trades in agro commodities, mainly wheat. Its office is in Baran, Rajasthan, close to the food grain market, which ensures easy availability of agro commodities. NITTYAKALI RICE: CRISIL Assigns B+ Rating to INR35MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Nittyakali Rice Mill (NKRM). The ratings reflect NKRM's modest scale of operations in intensely competitive industry and vulnerability of operating profitability to volatility in raw material prices and government regulations. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 2.5 CRISIL B+/Stable Cash Credit 35 CRISIL B+/Stable Bank Guarantee 3 CRISIL A4 Bill Purchase- Discounting Facility 39.5 CRISIL A4 These rating weaknesses are partially offset by promoters' extensive experience in the rice milling business and established and diverse customer base. Outlook: Stable CRISIL believes NKRM will continue to benefit over the medium term from diverse clientele and promoters' extensive experience. The outlook may be revised to 'Positive' if substantial and sustained increase in scale of operations and cash accrual, along with improved working capital management, leads to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if lower-than-expected cash accrual, stretch in working capital cycle, or large, debt-funded capital expenditure leads to deterioration in overall financial risk profile. Set up as a partnership firm by Mr. Tapan Kumar Dutta, Mr. Swapan Kumar Dutta, Mr. Janardan Dutta, and Ms. Aruna Dutta, NKRM mills non-basmati rice. Manufacturing facility is in Alamganj, Burdwan district, West Bengal. NUTRI AGROVET: CRISIL Assigns B+ Rating to INR50MM Cash Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Nutri Agrovet (Nutri). The rating reflects Nutri's modest scale of operations with low operating margins, high customer concentration, susceptibility to risks inherent in the poultry industry and intense competition. These weaknesses are mitigated by the partners' experience and moderate financial risk profile because of low gearing and comfortable debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable Term Loan 20 CRISIL B+/Stable Outlook: Stable CRISIL believes Nutri will continue to benefit from its partners' experience. The outlook may be revised to 'Positive' if scale of operations and operating profitability improve on a sustained basis. Conversely, the outlook may be revised to 'Negative' if decline in revenue and operating profitability or large, debt- funded capital expenditure weakens financial risk profile. Nutri, set up in 2013, manufactures poultry feed with capacity of 100 tonne per day. The firm has a manufacturing facility in Kanpur, Uttar Pradesh. Nutri is a partnership firm with Mr. Ajay Tiwari, Mr. Mohammad Imran, Mr. Jitendra Dixit, Mr. Mahanand Pathak and Mr. Mohammad Naseem as partners. PAS TRADING: CRISIL Assigns B+ Rating to INR90MM Cash Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of PAS Trading House (PAS). The rating reflects the firm's below-average financial risk profile because of small networth and weak capital structure; its modest, albeit improving, scale of operations; and large working capital requirement. These weaknesses are partially offset by its promoters' extensive experience in the paper trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 45 CRISIL B+/Stable Outlook: Stable CRISIL believes PAS will benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm's scale of operations increases significantly, while it achieves moderate and stable profitability, leading to higher- than-expected cash accrual, or if promoters infuse substantial capital. Conversely, the outlook may be revised to 'Negative' if financial risk profile, particularly liquidity, weakens because of lower cash accrual or stretch in working capital cycle. PAS, a partnership firm established by Mr. Sunil Khanna and his family members, trades in paper. It imports around 75 percent of its requirement. PATCO FOODS: ICRA Suspends 'D' Rating on INR5cr Cash Loan --------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR9.71 crore long term fund based facilities of Patco Foods Private Limited. The suspension follows ICRAs inability to carry out a rating surveillance due to non cooperation from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Cash Credit Limit 5.00 [ICRA]D suspended Long Term Term Loan Limit 4.71 [ICRA]D suspended PFPL is a part of 'Patco' group of companies, established in 2010 to manufacture various ready-to-eat food products. The group is promoted by Mr. Matur Savani, Mr. Rakesh Patel and Mr. Lalji Patel. PFPL is the flagship company of the group while the rest three associate firms namely M/s Jogi Food Processing, M/s Krishna Food Processing and M/s Shreeji Food Processing operate on a job work basis for PFPL. The manufacturing facility of all the four companies are located in a single premises spread over 58 acres of land. PFPL manufactures potato wafers, namkeen & kurkure and has an installed capacity of 2700 TPA of wafers and 1800 TPA of namkeen & kurkure PRIME TECHNOPLAST: CRISIL Cuts Rating on INR500MM Loan to D ----------------------------------------------------------- CRISIL has downgraded its rating on the bank facility of Prime Technoplast Private Limited (PTPL) to 'CRISIL D' from 'CRISIL BB/Stable'. The downgrade reflects ongoing delays by PTPL in servicing interest dues owing to stretched liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 500 CRISIL D (Downgraded from 'CRISIL BB/Stable') The company has large working capital requirements, low profitability, and a weak financial risk profile, marked by high gearing, modest networth and average debt protection metrics. The company, however, benefits from the extensive experience of the promoters in manufacturing polypropylene (PP) bags, and from its established market position. Incorporated in 2007, PTPL manufactures PP bags. Mr. Mehtab Hussain manages the daily operations. The manufacturing facility is in Howrah, West Bengal. PROMPT TERMINALS: ICRA Assigns B+ Rating to INR20CR LT Loan ----------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B+ to the INR20.00 crore long-term proposed bank facilities of Prompt Terminals Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed long term facility 20.00 [ICRA]B+ (assigned) The assigned rating draws comfort from the favorable demand for container freight station (CFS) facilities in Tuticorin, buttressed by robust growth in container throughput volumes in the V.O. Chidambaranar port (VOC) on the back of strong exim trade. Increase in the draft of the port from 12.8m to 16.0 m and conversion of a berth into a new container terminal would propel demand growth for CFS facilities in the port town. The rating also considers the promoter's experience in the business of port handling in Tuticorin through the group firm, Prompt Shipping, committed volumes from the group company (Global Polybags Industries Private Limited) which is involved in manufacturing and exports of polythene bags. The total cost of the proposed CFS project is ~Rs. 28.0 crore, and is planned to be funded through a debt to equity mix of 2.5:1. The rating considers the associated risks of a project entity, namely timely sanction and disbursement of funds leading to completion of the project and commencement of operations within the targeted deadlines, and the company's ability to achieve breakeven volumes at the earliest. The ratings also consider the declining exports and slowing economic activity across ports in India, and the prevalent competition in the Tuticorin CFS market from 12 established players, which could hinder PTPL's efforts to enhance the facility's throughput; however, this is partly mitigated by the volumes expected from businesses of Group companies. Prompt Terminals Private Limited was incorporated in September 2014 with the aim of establishing a container freight station at Tuticorin in Tamil Nadu. The venture was set up to take advantage of the burgeoning CFS market in Tuticorin, leveraging the experience of the promoters, Mr. Muralidharan and Mr. Mathiprakash, in the business of Clearing and Forwarding in the said market. The facility would have a warehousing space of 75,000 square feet, including a bonded warehouse and reefer points. The total cost of the project is estimated to be INR28.0 crore, to be funded through a debt: equity mix of 2.5:1. The project is targeted to be completed by September 2016. R.K. PULSES: CRISIL Assigns 'B' Rating to INR60MM Cash Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of R.K. Pulses Private Limited (RKP). The rating reflects RKP's below-average financial risk profile because of small net worth, leveraged capital structure and sub-par debt protection metrics. The rating also factors in the company's small scale of operations and large working capital requirements. These weaknesses are mitigated by the promoter's extensive industry experience and funding support. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B/Stable Proposed Long Term Bank Loan Facility 20 CRISIL B/Stable Outlook: Stable RKP will benefit from the extensive industry experience and funding support of its promoter. The outlook may be revised to 'Positive' in case of significant growth in scale of operations and profitability along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if liquidity weakens because of lower-than-anticipated cash accrual, large working capital requirements, or debt-funded capital expenditure. Incorporated in 2000 by Mr. Rajiv Kumar Agarwal, RKP processes pulses such as urad dal, whole urad dal, masoor pulses, soyabean pulses, and soyameal pulses. RKP also undertakes trading in other pulses and sugar. It has one manufacturing unit in Bareilly, Uttar Pradesh. RA PARIKH: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has suspended RA Parikh Jewellers' (RAPJ) Long-Term Issuer Rating of 'IND BB-' with a Stable Outlook. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for RAPJ. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. RAPJ's ratings are: -- Long Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/ Stable -- INR60 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-' -- Proposed INR60 mil. fund based limits: 'Provisional IND BB-'; rating withdrawn as the firm did not proceed with the instrument as envisaged. RAKSHIT ENGINEERING: Ind-Ra Suspends 'IND B-' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rakshit Engineering Works Pvt. Ltd.'s (REWPL) Long-Term Issuer Rating of 'IND B-' to the suspended category. The Outlook was Stable. The rating will now appear as 'IND B-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for REWPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. REWPL's ratings are: -- Long-Term Issuer Rating: migrated to 'IND B-(suspended)' from 'IND B-'/Stable -- INR40 mil. fund-based limits: migrated to 'IND B-(suspended)' from 'IND B-' -- INR40.26 mil. long-term loans: migrated to 'IND B-(suspended)' from 'IND B-' -- INR15 mil. non-fund-based limits: migrated to 'IND A4(suspended)' from 'IND A4' ROCKLINE CONSTRUCTION: CRISIL Assigns D Rating to INR36.5MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Rockline Construction (RC). The rating reflects instance of delayed payment of RC's term debt obligation, during December 2015. This was caused due to weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 36.5 CRISIL D Cash Credit 23.5 CRISIL D RC has a small scale of operations in a highly competitive and fragmented industry and is also exposed to risks relating to geographical and customer concentration. The operation of the company is working capital intensive. These rating weaknesses are partially offset by the extensive experience of the partners in execution of water supply projects. Established in 1991, RC is a partnership firm engaged in the business of construction of sewerage, laying of pipelines, supply of raw material and other water supply projects for various Government of Maharashtra undertakings. The firm's partners are Mr. Popatrao Gaikwad, Mr. G.K. Chavan, Mr. Sumit Gaikwad and Mr. Sachin Gaikwad. S K PLASTIC: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated S K Plastic Engineerings' (SKPE) 'IND BB-' Long-Term Issuer Rating with a Stable Outlook to the suspended category. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SKPE. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. SKPE's ratings are: -- Long Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/ Stable -- INR40 mil. fund based limits: migrated to 'IND BB-(suspended)' from 'IND BB-' -- INR45 mil. long-term loans: migrated to 'IND BB-(suspended)' from 'IND BB-' -- INR0.27 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' SAI CONSTRUCTION: Ind-Ra Suspends 'IND B' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sai Construction & Builders' (SCB) 'IND B' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND B(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage of SCB The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. SCB's ratings: -- Long-Term Issuer Rating: migrated to 'IND B(suspended)' from 'IND B'/Stable -- INR100.00 mil. fund-based OD limits: migrated to 'IND B(suspended)' from 'IND B' and 'IND A4 (suspended)' from 'IND A4' -- INR95.00 mil. fund-based limits: migrated to 'IND B(suspended)' from 'IND B' and 'IND A4 (suspended)' from 'IND A4' SANTARAM SPINNERS: CARE Reaffirms B+ Rating on INR2.8cr LT Loan --------------------------------------------------------------- CARE reaffirms ratings assigned to bank facilities of Santaram Spinners Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 2.80 CARE B+ Reaffirmed Long-term/Short-term Bank 8.00 CARE B+/CARE A4 Facilities Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Santaram Spinners Limited (SSL) continue to remain constrained on account of its thin profitability due to limited value addition in the cotton ginning business, weak debt protection indicators and leveraged capital structure. The ratings are further constrained by the working capital intensive operations and susceptibility of its operating margin to volatile cotton prices and seasonality associated with the availability of cotton coupled with impact of changes in government policy on cotton. The ratings, however, favorably takes into consideration the vast experience of the promoters in the cotton ginning business, its strategic location within the cotton producing region of Gujarat and reputed clientele of SSL. SSL's ability to increase its scale of operations while efficiently managing its working capital requirements along with the improvement in the profitability would be the key rating sensitivities. SSL was incorporated in September 1983, as a private limited company and subsequently got converted into a public limited company in December 1994. SSL is engaged in cotton ginning and pressing with an installed capacity of 300 Metric Tons per Day (MTPD) along with the trading of kapas, ginned cotton and cotton seeds. SSL has also set up an oil mill with 11 oil expellers having an installed capacity of 10 MTPD for manufacturing raw oil and de-oiled cakes. The manufacturing facilities of the company are located at Kadi, Gujarat. SSL has also commissioned wind turbine generator of 0.80 MW at Jamnagar. Based on FY15 audited results, (refers to the period April 1 to March 31), SSL reported a Total Operating Income (TOI) of INR173.96 crore (P.Y.: INR80.71 crore) and profit after tax (PAT) of INR0.21 crore (P.Y.: net loss of INR0.01 crore). Based on 9MFY16 provisional results, (refers to the period April 1 to December 31), SSL reported TOI of INR125.33 crore (P.Y.: INR119.22 crore) and PAT of INR0.07 crore (P.Y.:INR0.70 crore). SATYANARAYAN TEA: CARE Lowers Rating on INR24.27cr Loan to 'B' -------------------------------------------------------------- CARE revises the rating assigned to lt bank facilities and reaffirms the rating assigned to ST bank facilities of Satyanarayan Tea Company Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 24.27 CARE B Revised from CARE BB+ Short-term Bank Facilities 11.80 CARE A4 Reaffirmed Rating Rationale The revision in the rating assigned to the long-term bank facilities of Satyanarayan Tea Company Pvt Ltd (STCPL) takes into account the deterioration in the financial risk profile in FY15 (refers to the period April 01 to March 31) and 9MFY16 leading to stretched liquidity position. The above ratings continue to be constrained by working capital intensive operations, and inherent susceptibility of the tea industry to the vagaries of nature. The above constraints are partially offset by the long experience of the promoters and fund support to the company, moderate capacity utilisation with reasonable recovery rate and stable outlook for the tea industry. The ability of the company to manage working capital effectively, curb losses, and improve capital structure are the key rating sensitivities. STCPL was promoted by Mr Saharia and Mr Kanoi of Assam during 1930's and was engaged in manufacturing and trading of tea. It was taken over by the Kolkata-based Limtex Group in FY05 and since then, the company is under the aegis of Mr Gopal Poddar, the promoter of the Limtex Group. Over the years, the company increased its tea processing capacity, in phases, to 4 million kgpa CTC (Crush, Tear and Curl) tea. STCPL is also involved in blending and trading of tea. STCPL owns one tea estate in Naharkatia (Dibruagarh, Assam). The aggregate area under cultivation is 222 hectares, having yielding capacity of 23 lakh kg per annum of green leaf. The tea estate meets about 22% of STCPL's annual requirement of green leaf. During FY15, SNTCPL reported a net profit of INR0.8 crore (net profit of INR1.8 crore in FY14) on a total operating income of INR167.9 crore (Rs.159.0 crore in FY14). As per the provisional results for 9MFY16, the company incurred a net loss of INR5.5 crore on a total operating income of INR115.2 crore. SAVITRIDEVI INDUSTRIES: CARE Assigns B+ Rating to INR9.19cr Loan ---------------------------------------------------------------- CARE assigns 'CARE B+' ratings to the bank facilities of Savitridevi Industries Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.19 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Savitridevi Industries Limited (SIL) is constrained by low profitability margins inherent to the cotton ginning business and trading of milk, seasonal availability of raw material (raw cotton), volatility in raw material prices, working capital intensive nature of operations and presence in a highly fragmented cotton ginning industry. The rating derives strength from experience of promoters in the cotton industry, location advantage with respect to close proximity of raw material, diversified product portfolio and regular capital infusion in past to fund increasing scale of operations. The ability of SIL to increase its scale of operations, improvement in profitability margin along with effective management of working capital requirement and maintaining its capital structure are the key rating sensitivities. SIL was incorporated in October 2009 as Savitridevi Cotton and Oil Limited. During December 2013, the name of company was changed to Savitridevi Industries Limited on account of diversified business division. SIL currently is engaged in ginning and pressing of cotton, extraction of oil from cotton seed and trading of milk. The ginning & pressing plant and oil extraction unit is located at Atpadi, Sangli (Maharashtra) with an installed capacity of 73,000 bales per annum and to extract 2,628 mettic tones of cotton seed oil per annum. Moreover, the company is also involved in trading of milk with 30 dairy centres in and around Sangli (Maharashtra) for collection of milk. The major customers of milk division are Parag Milk Food Limited and Chitale Dairy. During FY15 (Audited), SIL reported a total operating income of INR44.94 crore, PBILDT of INR1.98 crore and PAT of INR0.39 crore as against a total operating income of INR36.65 crore, PBILDT of INR1.39 crore and PAT of INR0.08 crore in FY14 (Audited). SHIVA VEENER: Ind-Ra Suspends 'IND B+' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shiva Veener (India) Private Limited's (SVIPL) 'IND B+' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND B+ (suspended)' on the agency's website. The agency has also migrated the company's INR60.00 mil. fund- based limits to 'IND B+(suspended)'/'IND A4(suspended)' from 'IND B+'/'IND A4'. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SVIPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. SHREE HARI: Ind-Ra Suspends 'IND B' Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shree Hari Om Foods' (SHOF) 'IND B' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND B(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage of SHOF. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. SHOF's ratings: -- Long-Term Issuer Rating: migrated to 'IND B(suspended)' from 'IND B'/Stable -- INR120 mil. fund-based working capital limits: migrated to 'IND B(suspended)' from 'IND B' and 'IND A4(suspended)' from 'IND A4' -- INR6 mil term loan: migrated to 'IND B(suspended)' from ' 'IND B' SHREE RADHA: CRISIL Assigns B+ Rating to INR25MM Cash Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Shree Radha Krishna Vinimay Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable The rating reflects average financial risk profile because of high gearing and weak debt protection metrics, and SRKVPL's exposure to risks related to highly fragmented industry because of stiff competition and low operating margin. These rating weaknesses are mitigated by the promoters' extensive experience in the construction industry. Outlook: Stable CRISIL believes SRKVPL will continue to benefit from the promoters' longstanding presence in the construction industry. The outlook may be revised to 'Positive' if the financial risk profile improves significantly, because of capital infusion and better- than-expected revenue and profitability. Conversely, the outlook may be revised to 'Negative' if the profitability or revenue decline, resulting in low cash accrual, or if the company undertakes any large, debt-funded capital expenditure programme. SRKVPL, incorporated in 2012 in Ranchi (Jharkhand), trades in steel, cement and high sea sales. The company is promoted by Mr. Amit Sarawgi and Ms. Swati Sarawgi who has 15 years' experience in trading of steel and cement products. SHREE SANTOSH: ICRA Assigns B+ Rating to INR10cr Cash Loan ---------------------------------------------------------- ICRA has assigned the [ICRA]B+ rating to the INR10.00 crore cash credit facility and INR3.00 crore term loan facility of Shree Santosh Cotton Spin Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 10.00 [ICRA]B+ assigned Term Loan 3.00 [ICRA]B+ assigned The assigned rating factors in the weak financial risk profile of the company characterised by thin profitability, highly leveraged capital structure and weak debt coverage indicators. The rating is also constrained by highly competitive and fragmented industry structure with low entry barriers and the vulnerability of the company's profitability to movements in cotton prices on account of seasonality and company's exposure to regulatory risks with regards to MSP. The rating, however, positively factors in the longstanding experience of the promoters in the cotton ginning and pressing industry and the location advantage enjoyed by the company by virtue of its location in the cotton producing belt of Gujarat. Incorporated in February 2013, Shree Santosh Cotton Spin Private Limited (SSCSPL) is engaged in cotton ginning and pressing business. The company started commercial operations from April 2014 at its plant located at Gondal, Rajkot in Gujarat. The plant is equipped with 44 ginning machines and 1 pressing machine with a total installed capacity of producing ~450 bales per day (considering 24 hours of operations). The promoters have extensive experience in cotton industry and are also involved in the operations of a few other cotton ginning companies namely Shree Raghuvanshi Fibers Private Limited, Gopal Enterprise, Gopal Trading Co. and Gopal Cotton Corporation. Recent Results For the first full year of commercial operations, the company has reported an operating income of INR91.07 crore and profit after tax of INR0.15 crore in FY15. SHREEJI FOOD: ICRA Suspends 'D' Rating on INR3.57cr Term Loan ------------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR3.68 crore facilities of Shreeji Food Processing. The suspension follows ICRAs inability to carry out a rating surveillance due to non cooperation from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan Limit 3.57 [ICRA]D suspended Credit Exposure Limits 0.11 [ICRA]D suspended SFP is a part of 'Patco' group of companies, established in 2010 to manufacture various ready-to-eat food products. The group is promoted by Mr. Matur Savani, Mr. Rakesh Patel and Mr. Lalji Patel. PFPL is the flagship company of group while the rest three associate firms namely M/s Jogi Food Processing, M/s Krishna Food Processing and M/s Shreeji Food Processing operate on job work basis for PFPL. The manufacturing facility of all the four companies are located in a single large campus spread over 58 acres of land. SFP is a proprietorship firm engaged in the processing and sorting of cereals & pulses and cashew nuts. The installed capacity of the firm is 15000TPA and 300TPA for pulses and cashews respectively. SHRI BALAJI: ICRA Upgrades Rating on INR65cr Term Loan to B ----------------------------------------------------------- ICRA has upgraded the long-term rating assigned to INR65.00 crore term loan and INR15 crore unallocated limits of Shri Balaji Sugars & Chemicals Private Limited from [ICRA]D to [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 65.00 [ICRA]B upgraded Unallocated limits 15.00 [ICRA]B upgraded The revision in rating takes into consideration timely debt servicing by SBSCPL in the last three months. ICRA also notes that the sugar unit under SBSCPL has commenced full fledged operations in the on-going FY 2016 post trial operations conducted in March 2015. The rating continues to remain constrained by the stretched capital structure and sizeable debt repayment obligations of SBSCPL going forward. Further, as financial closure for the proposed Ethanol unit of the company (total cost of INR95.50 crore to be funded by debt of INR66.8 crore and the remaining by quasi equity with assistance from the Sugar development fund and promoters equity) remains to be achieved, funding requirement for the same could exert pressure on the cashflows of the company given that the operations of the sugar unit are currently in a nascent stage with a limited track record. In addition, the rating continues to remain tempered by the vulnerability of the sugar operations to agro climatic risks, and regulated nature of the industry in terms of pricing and exports. The rating, however, draws comfort from the presence of a power purchase agreement(PPA) for the co-generation unit at a relatively remunerative tariff, which, along with sales proceeds from molasses provides a cushion for the company in case of sugar downturn. Further, the rating continues to positively factor in the location attractiveness of the project as the command area constitutes of a well-developed cane area; and the extensive experience of management personnel in the sugar industry. The company's ability to adequately manage its working capital requirements, ensure timely completion of the capital expansion plan undertaken while servicing its long term debt obligations in a timely manner remain the key rating sensitivities. Shri Balaji Sugars and Chemicals Private Limited incorporated in 2011 and has set up a 3500 TCD sugar plant in Bijapur district in North Karnataka. The manufacturing facility is being set up in two phases; first phase comprising 3500 TCD sugar mill and 18 MW cogeneration plant and the second phase comprising a 60 KLPD distillery. While the first phase was commissioned in March 2015, the construction of the second phase is likely to commence in during H2 FY 2016. SHRI RAMGINNING: CARE Assigns B Rating to INR9.80cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B' rating to the bank faciities of Shri Ramginning Pressing And Oilmill. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.80 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Shri Ram Ginning Pressing and Oil Mill (SGP) is constrained by lack of experience of the promoters in the cotton industry, susceptibility to cyclicality and agro-climatic risk of industry, working capital intensive nature of operations and partnership nature of constitution. The above weaknesses are offset by qualified partners, locational advantage emanating from proximity to raw material and eligibility for interest subsidy against capital expenditure from the central and state governments. The ability of the firm to achieve the envisaged income from operations and profitability margins is the key rating sensitivity. SGP is a Nagpur-based (Maharashtra) partnership firm established by Mr Mahipal Choukasey and his son Mr Saurabh Choukasey in December 2014. SGP has set up a ginning and pressing unit to manufacture cottons bales and cotton seeds. The plant is being set up with a capacity of about 45,000 bales per annum (7,425 metric tonnes) working 125 days in a year and is spread over a land of 4.5 acres. The commercial operations of the plant started from January 2016. SHRI ROKADOBAMAHARAJ: CARE Reaffirms B+ Rating on INR10.03cr Loan ----------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Shri Rokadobamaharaj Ginning And Pressing Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 10.03 CARE B+ Reaffirmed Rating Rationale The rating assigned to the bank facilities of Shri Rokadoba Maharaj Ginning and Pressing Private Limited (SRMGPPL) is constrained by low profitability margins inherent to the cotton ginning business, seasonal availability of raw material (raw cotton) and associated volatility in raw material prices, working capital intensive nature of operations and presence in a highly fragmented cotton ginning industry. The rating further takes a note of de-growth in total operating income during FY15 (refers to the period April 1 to March 31). The rating, however, continues to derive strength from experience of the promoters in the cotton industry, strategic location of the manufacturing unit with proximity to the source of cotton. The rating further takes a note of improvement in capital structure and improvement in profitability margin during FY15. Going forward, the ability of SRGPL to improve its scale of operations, improvement in the profitability margin along-with effective management of working capital is the key rating sensitivities. Incorporated in the year 2008, Aurangabad-based SRMGPPL is engaged in cotton ginning and pressing along with extraction of cotton oil. SRGPL procures its raw material i.e. raw cotton from the local market (farmers) and sell its finished products to its customers located in and around Aurangabad. The finished products of the company include cotton bales, cotton seed, cotton oil and cotton cake (a by-product). The manufacturing facility of the company is located at Sillod, Aurangabad with an installed capacity of manufacturing 70,000 bales per annum (utilization 75% in FY15) and extracting 12,000 quintals of cotton oil per annum (utilization 70% in FY15). The facility started its commercial operations of ginning unit in 2010 and cotton oil from February 28, 2013. During FY15 (Audited), SRMGPPL reported total operating income of INR89.59 crore, PBILDT of INR2.56 crore and PAT of INR0.17 crore as against total operating income of INR96.37 crore, PBILDT of INR2.65 crore and PAT of INR0.13 crore in FY14 (Audited). SITARAM MAHARAJ: CARE Lowers Rating on INR68.24cr LT Loan to 'D' ---------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Sitaram Maharaj Sakhar Karkhana (Khardi) Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 68.24 CARE D Revised from CARE B Rating Rationale The revision in the rating of the bank facilities of Sitaram Maharaj Sakhar Karkhana (Khardi) Limited (SMSKL) takes into account the ongoing delays in debt servicing of its rated bank facilities. SMSKL was incorporated by Mr Baban Sonawale (Chairman) on May 24, 1999, under the guidance of chief promoter Mr Kalyanrao Kale to undertake sugar and sugar-related production at Khardi village, in Pandhrapur District, Solapur, Maharashtra. Post fund tie-ups and receiving all necessary approvals over the period 2010-2012, SMSKL set up a partially integrated sugar manufacturing facility with the installed capacity of 2,500 tonnes of cane crushed per day (TCD) and bagasse-based cogeneration plant with an installed capacity of 10 mega-watts (MW). The company has entered into a PPA (Power Purchase Agreement) with Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) for the sale of electricity post captive consumption. SMSKL commenced commercial operations from the sugar season (SS) 2012-2013, which was the trial season for the sugar factory. During crushing season (SS 2014-15), SMSKL has crushed cane to the tune of 350,331 lakh MT at an average recovery rate of 10.70%. Based on the financials for audited FY15 (refers to the period April 1 to March 31), SMSKL reported a total operating income of INR74.49 crore (P.Y: INR49.69 crore) and profit after tax of INR6.26 crore (P.Y: loss of INR11.08 crore). SOLVAY VISHNU: CARE Assigns B+ Rating to INR17.20cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Solvay Vishnu Barium Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 17.20 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Solvay Vishnu Barium Private Limited (SVB) are constrained by small and volatile scale of operations with continued loss and declining trend in PBILDT margin over the period FY13-15 (refers to the period April 01 to March 31), low capacity utilization levels and volatile raw material costs at the back of issues related to availability of raw materials and high working capital utilization. The ratings are however underpinned by experienced promoters and management team, moderately diversified client base albeit limited product portfolio, repeated orders backed by long standing association with reputed clientele and comfortable capital structure as on March 31, 2015; however the same deteriorated as on September 30, 2015 (un-audited). The ability of the company to further improve its scale of operation and profitability margins while efficiently managing its working capital are the key rating sensitivities. Solvay Vishnu Barium Private Limited (SVB) was originally incorporated on May 29, 2001. The company was initially established as a Joint Venture (JV) between Solvay group (Belgium Chemical Group) and Vishnu Chemicals Limited (VCL). After 5 years, VCL exited and Solvay group took over the entire 100% stake in the company. Solvay is an international chemical group which serves many markets, varying from energy and the environment to automotive and aerospace or electricity and electronics. The group is headquartered in Brussels and generated around 10.2 billion euros in net sales in 2014. Recently, Solvay decided to move away from the business of barium carbonate in India primarily on account of local nature of business and not having control over mining and has sold the entire 100% stake to VCL in H1FY16 and the operations of the company under VCL has commenced from July 01, 2015. The main products of the company include Barium Carbonate (powder and granules), sulphur and barium chloride. SVB has its manufacturing facilities at Kalahasti, Andhra Pradesh and is one of the leading manufacturers of barium carbonate in India. The unit has an installed capacity of 40,000 Metric Tonnes Per Annum (MTPA) for barium carbonate as on March 31, 2015. During FY15 SVB registered a total operating income of INR38.02 crore (Rs.35.31 crore in FY14) with net loss of INR5.51 crore (net loss of INR3.55 crore in FY14). Furthermore, the company has registered sales of INR11.13 crore for H1FY16 (Unaudited). SRAVYA INFRA: CRISIL Assigns B+ Rating to INR150MM LT Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Sravya Infra Projects Private Limited (SIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 150 CRISIL B+/Stable The rating reflects SIPL's susceptibility to risks related to the completion and salability of its ongoing real estate residential projects in Bengaluru and to cyclicality in the real estate industry. These weaknesses are partially offset by the extensive industry experience of the promoters in the residential real estate development business and the strategic location of the projects. Outlook: Stable CRISIL believes SIPL will benefit over the medium term from the promoters' extensive experience in the residential real estate development segment. The outlook may be revised to 'Positive' if the company completes its projects earlier than expected or in case of more-than-expected sales realisations from ongoing projects, leading to substantial cash flow. Conversely, the outlook may be revised to 'Negative' if there is any delay in project completion, in the receipt of advances from customers, or if SIPL undertakes a large, debt-funded project. Established in 2010, SIPL is engaged in real estate development. The company is promoted by Mr. Sri Partha Sarathi Reddy and Mrs. B Prantiha. T BHIMJYANI: Ind-Ra Assigns BB+ Rating; Outlook Stable ------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned T Bhimjyani Realty Private Limited (TBRPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The agency has also assigned the company's INR1,800 mil. long-term loans an 'IND BB+' rating with Stable Outlook. KEY RATING DRIVERS The ratings reflect TBRPL's execution risk in its ongoing residential project Neelkanth Woods in Thane, Mumbai. Only 13.19% of the total construction has been completed, and the project is scheduled to be completed by January 2019. The ratings benefit from the promoter's experience of around five decades in the real estate sector, and the project's proximity to all the basic amenities such as schools and colleges. The ratings are supported by the customer advances received (INR1,926.97 mil.) by the company till November 2015, which is equal to 23.44% of the total project cost. RATING SENSITIVITIES Positive: The timely progress of the project and the sale of a substantial number of housing units leading to strong cash flow visibility will be positive for the ratings. Negative: Any slowing down of flat booking leading to a cash flow shortfall will be negative for the ratings. COMPANY PROFILE TBRPL was incorporated in 2011as Ravechi Infrastructure Projects Pvt Ltd and during 2013, its name was changed to T Bhimjyani Realty Private Limited. This project is to be developed in 43 acres of land located at the foot of Yeoor Hills with access from Ghodbunder Road. The project includes 12 residential towers. The company is planning to develop Phase 1 and Phase 2 which includes six towers with a total saleable area of 12,52,130 sq. ft. Tulsi Bhimjyani is the chairman of the company, and Anshul T Bhimjyani and Devang T Bhimjyani are the other directors of the company. TRIKAAL LEASING: CARE Assigns 'B+ [FD]' Rating to INR2.87cr Loan ---------------------------------------------------------------- CARE assigns 'CARE B+ [FD]' ratings assigned to the fixed deposits of Trikaal Leasing And Finance Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fixed Deposits 2.87 CARE B+ [FD] Assigned Rating Rationale The rating assigned to the fixed deposits raised by Trikaal Leasing and Finance Ltd (TLFL) is constrained by its small size of operations and high regional concentration, concentrated resource profile, weak asset quality, low product diversification, inherent risk associated with target lending segment. However, the rating derives strength from the experience of the promoters in the industry, comfortable capital adequacy levels and satisfactory profitability margins. Going forward, the ability of the company to scale up its operation and achieve geographical diversification, improve asset quality and profitability parameters would be the key rating sensitivities. TLFL is a Dharwad-based Deposit taking NBFC involved in business of hire purchase of used commercial vehicles to individuals in Karnataka. The company was incorporated in June 1992. TLFL has presence in four districts of Karnataka, namely Hubli-Dharwad, Gadag, Haveri and Belgaum. Mr. Ravi N Deshpande is the Managing Director (CMD) who handles the day-to-day operations of the company. During FY15 (refers to the period April 1 to March 31), the company registered a PAT of INR0.23 crore (FY14: INR0.31 crore) on a total income of INR1.12 crore (FY14: INR1.17 crore). The company had a loan portfolio of INR6.54 crore and capital adequacy level of 66.21% as on March 31, 2015. TROY IFMR: Ind-Ra Puts BB- Rating on INR24.1MM Series A2 PTCs ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Troy IFMR Capital 2016 (an ABS transaction) provisional ratings as: -- INR357.5 mil. Series A1 pass through certificates (PTCs): 'Provisional IND A-(SO)'; Outlook Stable -- INR24.1 mil. Series A2 PTCs: 'Provisional IND BB-(SO)'; Outlook Stable The final ratings are contingent upon the receipt of final documents conforming to the information already received. The micro finance loan pool to be assigned to the trust is originated by Satin Creditcare Network Limited (SCNL; 'IND BBB+'/Stable). KEY RATING DRIVERS The provisional ratings are based on the origination, servicing, collection and recovery expertise of SCNL, the legal and financial structure of the transaction and the credit enhancement (CE) provided in the transaction. The provisional rating of Series A1 PTCs addresses the timely payment of interest on monthly payment dates and ultimate payment of principal by the final maturity date on Dec. 20, 2017, in accordance with the transaction documentation. The provisional rating of Series A2 PTCs addresses the timely payment of interest on monthly payment dates only after the complete redemption of Series A1 PTCs and ultimate payment of principal by the final maturity date on Dec. 20, 2017, in accordance with the transaction documentation. The transaction benefits from the internal CE on account of excess interest spread, subordination and over-collateralisation. The levels of overcollateralisation available to Series A1 and A2 PTCs are 11% and 5%, respectively, of the initial pool principal outstanding (POS). The total excess cash flow or the internal CE available to Series A1 and A2 PTCs is 21.96% and 14.85% respectively, of the initial POS. The transaction also benefits from the external CE of 3.00% of the initial POS in the form of fixed deposits in the name of the originator with a lien marked in favour of the trustee. The collateral pool to be assigned to the trust at par had the initial POS of INR401.7 mil., as of the pool cut-off date of Feb. 1, 2016. The external CE will be used in case of a shortfall in a) complete redemption of all Series of PTCs on the final maturity date, b) monthly interest payment to Series A1 investors and c) monthly interest payment of Series A2 investors after the complete redemption of Series A1 investors. RATING SENSITIVITIES As part of its analysis, Ind-Ra built a pool cash flow model based on the transaction's financial structure. The agency also analyzed historical data to determine the base values of key variables that would influence the level of expected losses in this transaction. The base values of the default rate, recovery rate, time to recovery, collection efficiency, prepayment rate and pool yield were stressed to assess whether the level of CE was sufficient for the current rating levels. Ind-Ra also conducted rating sensitivity tests. If the assumptions of the base case default rate worsen by 30%, the model-implied rating sensitivity suggests that the rating of the Series A1 will be downgraded by two notches. If the assumptions of the base case default rate worsen by 30%, the model-implied rating sensitivity suggests that the rating of the Series A2 will not be downgraded. UNI SOURCCE: Ind-Ra Suspends 'IND BB+' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Uni Sourcce Treend India's (USTI) 'IND BB+' Long-Term Issuer Rating with a Stable Outlook to the suspended category. The rating will now appear as 'IND BB+(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for USTI. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. USTI's ratings are: -- Long-Term Issuer Rating: migrated to 'IND BB+(suspended)' from 'IND BB+'/Stable -- INR170 mil. fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' -- INR46.08 mil. long-term loans: migrated to 'IND BB+(suspended)' from 'IND BB+' UNIWORLD SUGARS: CARE Assigns 'B' Rating to INR75cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B' ratings to the bank facilities of Uniworld Sugars Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 75 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Uniworld Sugars P Ltd (USPL) takes into account the weak financial risk profile of the company characterized by cash losses and past delays, regulated nature of the business and inherent cyclicality of the sugar industry. The rating, however, draws comfort from experienced promoters and port based processing unit which extends logistical advantage. Going forward, the ability of USPL to improve profitability without any adverse impact on the capital structure shall be the key rating sensitivity. USPL is an equal joint venture between ED & F Man Sugar Netherlands BV (EDF), one of the largest commodity traders in the world markets and Simbhaoli Sugars Limited (SSL), having one of the largest sugar refineries in India. USPL is engaged in refinery operations which processes raw sugar into white refined sugar though ION exchange process and sells its product under the brand name "Tiger". SSL and EDF formed a joint venture to set up a manufacturing facility at the port of Kandla, Gujarat with a capacity to refine 1000 metric tonnes of raw sugar per day into white refined sugar. USPL commissioned the project at a total cost of INR270 crore funded through term loan of INR103.50 crore, Promoters contribution of INR145 crore and the balance INR21.50 crore through contributions in form of compulsory convertible debentures (from the promoters). The project commenced commercial production with effect from July 1, 2014, which was delayed by a year owing to delay in supply of project equipments. As per the Audited results for FY15 (refers to the period April 1 to March 31) USPL had a total operating income of INR259 crore with a Net loss of INR41 crore. VEDA BIOFUEL: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating -------------------------------------------------------------- India Rating and Research (Ind-Ra) has assigned Veda Biofuel Limited (VBFL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. Ind-Ra has also assigned the company's INR773.00 mil. long-term loans an 'IND BB-' rating with a Stable Outlook. KEY RATING DRIVERS The ratings reflect the near complete status of VBFL's alcohol plant. The company was established in 2010 to set up a 75,000 litres per day plant in Vishakhapatnam, Andhra Pradesh. The plant is 95% complete and trial production is likely to start towards the end of February 2016. The management expects to start commercial production latest by end-March 2016, ahead of the scheduled July 2016 commencement. The ratings also factor in the plant's locational advantage in terms of the availability of raw materials as it is located in an agricultural area, and absence of any competition for the raw material (broken rice, corn, rice husk and coal) in the vicinity. RATING SENSITIVITIES Positive: Timely completion of the project in line of the project cost outlay and commencement of commercial operations leading to an EBITDA interest cover of above 2.0x will be positive for the ratings. Negative: Any time or cost overrun will be negative for the ratings. COMPANY PROFILE VBL was established in 2010. The plant is located in Nadipalli Village, Pusapatirega Mandal, Vizianagaram Dist, Andhra Pradesh. The company is involved in manufacturing of Extra Neutral Alcohol/Ethanol/Industrial Alcohols, with CO2 & Cattle feed as by products along with 3 MW captive power plant. VIJAY SABRE: ICRA Reaffirms 'C' Rating on INR10cr LT Loan --------------------------------------------------------- ICRA has reaffirmed the long term rating assigned to the INR11.49 crore fund based bank facilities of Vijay Sabre Safety Private Limited at [ICRA]C. ICRA has also reaffirmed the short term rating of [ICRA]A4 assigned to the INR8.00 crore non-fund based bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Demand cash Credit 10.00 [ICRA]C reaffirmed Long Term Fund Based Standby Line of Credit 00.90 [ICRA]C reaffirmed Long Term Fund Based Term Loan 00.59 [ICRA]C reaffirmed Short Term Non Fund Based - Letter of Credit 03.00 [ICRA]A4 reaffirmed Short Term Non Fund Based-Bank Guarantee 05.00 [ICRA]A4 reaffirmed The ratings reaffirmation factors in VSSPL's weak financial profile characterized by stagnant revenues during the past three years, low profitability and sluggishness in realization of receivables resulting in stretched liquidity position, necessitating increased utilization of working capital limits and delay in payments to creditors. Given the stretch on liquidity, the total outside liabilities to total net worth has increased to 2.17 times as on March 31, 2015 as compared to 1.69 times as on March 31, 2014. The ratings continue to be constrained by the susceptibility of margins to foreign exchange risks and intense competitive pressure from players in the organized sector. ICRA notes that the company has given a large corporate guarantee to its group entity, Vijay Latex products Private Limited (rated [ICRA]D by ICRA) which has a weak financial profile. The ratings, however, continue to positively factor in the experience of the promoters of more than two decades in the fire/safety industry and established market position in the personal protective equipment segment as reflected in a reputed and diversified customer base. Incorporated in 1988 by Mr. Jitendra Salot, VSSPL is engaged in manufacture and trading of fire and safety equipment with its head office in Sakinaka, Mumbai and has its manufacturing and trading units in Silvassa and Umbergaon. The company is ISO 9000:2001 certified and its product range is approved by BIS and CE marked. VSSPL has been an authorised distributor of Scott Health & Safety Limited in India since inception. It's group concern, Vijay Latex Products Private Limited (rated at [ICRA]D) is engaged in manufacturing of rubber gloves. Recent Results VSSPL recorded a net profit of INR0.03 crore on an operating income of INR32.41 crore for the year ending March 31, 2015. VIKAS TECHNOPLAST: Ind-Ra Suspends 'IND BB-' LT Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vikas Technoplast Pvt Ltd (VTPL) 'IND BB-' Long-Term Issuer Rating with a Stable outlook to the suspended category. The rating will now appear as 'IND BB- (suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for VTPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. VTPL's ratings are: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Stable -- INR30 mil. fund-based limits: migrated to 'IND BB-(suspended)' and 'IND A4+(suspended)' from 'IND BB-' and 'IND A4+' -- INR30 mil. long-term loans: migrated to 'IND BB- (suspended)' from 'IND BB-' VINAYAKA ELECTROALLOYS: CRISIL Assigns B Rating to INR50MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Vinayaka Electroalloys India Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable Long Term Loan 50 CRISIL B/Stable The rating reflects VEIPL's modest scale of operations, large working capital requirement, and weak financial risk profile because of high gearing, modest networth, and subdued debt protection metrics. These weaknesses are partially offset by its promoters' extensive industry experience and the company's established supplier and customer relationships. Outlook: Stable CRISIL believes VEIPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company reports significant growth in revenue and profitability, while improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of decline in revenue and profitability; or lengthening of working capital cycle, adversely affecting financial risk profile, particularly liquidity. VEIPL, established in 2006 and based in Erode, Tamil Nadu, manufactures steel castings for valves and pumps. It is promoted and managed by Mr. S Venkatachalamurthi, Mr. P Chinnusamy, and Mr. K Muthurathinam. For 2014-15 (refers to financial year, April1 to march 31), VEIPL's profit after tax (PAT) was INR1.8 million on net sales of INR183 million against net loss of INR13.1 million on net sales of INR140 million for 2013-14. VINDHYA CEREALS: Ind-Ra Suspends 'IND B' Long Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has suspended Vindhya Cereals Pvt Ltd (VCPL) Long Term Issuer Rating of 'IND B' with a Stable Outlook. The rating will now appear as 'IND B(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for VCPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. VCPL's ratings: -- Long Term Issuer Rating: migrated to 'IND B(suspended)' from 'IND B'/Stable -- INR200 mil. fund-based limits: migrated to 'IND B(suspended)' from 'IND B' -- INR68.34 mil. long-term loans: migrated to 'IND B(suspended)' from 'IND B' VISHRAMBHAI GORASIA: Ind-Ra Assigns 'IND B+' LT Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Vishrambhai Gorasia Construction Private Limited (VGCPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The agency has also assigned the company's INR50.0 mil. fund-based working capital limits a Long-term 'IND B+' rating with a Stable Outlook and a Short-term 'IND A4' rating. KEY RATING DRIVERS The ratings reflect VGCPL's small scale of operations, moderate credit metrics and tight liquidity. FY15 revenue was INR140.3 mil. (FY14: INR139.2 mil.), net leverage (total Ind-Ra adjusted net debt/operating EBITDAR) was 5.3x (4.5x) and EBITDA interest cover was 2.3x (2.2x). The company's use of the working capital facilities was 100% during the 12 months ended January 2016. EBITDA margins were 14.8% in FY15 (FY14: 10.0%). Ind-Ra expects the liquidity position to remain tight on a long collection period (87 days in FY15). The ratings are supported by the presence of an escalation clause for cement prices in its contracts for readymade concrete, safeguarding its margins from input price volatility. The ratings also benefit from VGCPL's around eight years of customer relationships, which have enabled it to obtain repeat orders. Also, its founders' experience of over two decades in the construction and readymade concrete industry benefits the ratings. RATING SENSITIVITIES Positive: Substantial revenue growth and increased profitability leading to a sustained improvement in the credit metrics will lead to a positive rating action. Negative: A decline in profitability resulting in a sustained deterioration in the credit profile of the company will lead to a negative rating action. COMPANY PROFILE Incorporated in 2008, VGCPL supplies readymade concrete. It also undertakes civil project works such as roads, buildings, dams, railways, and drainage and water supply line. The readymade concrete facilities are in four locations in Gujarat with a combine capacity of 190.0 cubic meters per hour. It is a closely held private limited company founded by Mr. Vishram Karsan Gorasia. VISHWAKARMA SCALES: CRISIL Assigns B Rating to INR55MM LT Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Vishwakarma Scales Private Limited (VSPL). The ratings reflect VSPL's small scale of operations in a highly fragmented industry, working capital intensive operations, and its weak financial risk profile marked by modest networth and average debt protection metrics. These weaknesses are partially offset by the promoters' extensive experience in the weighbridge industry and established relations with the reputed clientele. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 55 CRISIL B/Stable Cash Credit 30 CRISIL B/Stable Letter of Credit 15 CRISIL A4 Outlook: Stable CRISIL believes VSPL will continue to benefit over the medium term, backed by the promoters' extensive industry experience and relations with its reputed clientele. The outlook may be revised to 'Positive' if the company improves its working capital management or increases its scale of operations on a sustainable basis while improving its profitability margin. Conversely, the outlook may be revised to 'Negative' if liquidity deteriorates because of a stretched working capital cycle, or if the scale of operations or profitability declines, leading to significantly low cash accrual, or any large, debt-funded capital expenditure weakens the capital structure. VSPL, incorporated in 2007, is an Uttarakhand-based company. It is promoted by Mr. Avinash Chandra Dhiman, Mrs. Meenal Dhiman, and Mr. Pranav Dhiman. VSPL manufactures and markets weighing systems from miniature scales to heavy highway weighbridges and highway traffic-management systems. Its plant in Roorkee, Uttarakhand, has facilities for manufacturing more than 1850 different types of weighbridges per year. VMD MILLS: Ind-Ra Ups LT Issuer Rating to 'IND BB-' --------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded VMD Mills Pvt Ltd's (VMD) Long-Term Issuer Rating to 'IND BB-' from 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The upgrade reflects a significant improvement in VMD's operating EBITDA margins to 12.6% during FY15 from around 6%-7% over FY12- FY14. The improvement in margins was due to improved quality and substantial cost savings after the company installed new advanced machineries. The ratings also considers VMD's strong credit metrics with interest coverage of 6.7x (FY14: 39.0x) and net financial leverage of 3x (0.4x) during FY15, and its strong liquidity with average working capital utilization of around 50% during the 12 months ended January 2016. The ratings are, however, constrained by the company's small scale of operations, as reflected in its revenue of INR319 mil. during FY15. RATING SENSITIVITIES Positive: An improvement in the scale of operations while maintaining the credit profile will be positive for the ratings Negative: A reduction in profitability, leading to deterioration in credit metrics, will be negative for the ratings. COMPANY PROFILE VMD manufactures and exports yarns. The company is managed by Mr. A.P Dhandapani and family. Its registered office is located in Coimbatore. The company has an installed capacity of 36,000tons/annum. VMD's ratings: -- Long Term Issuer Rating: upgraded to 'IND BB-' from 'IND B+'; Outlook Stable -- INR50 mil. fund-based working capital limit: upgraded to 'IND BB-'/Stable from 'IND B+' -- INR106.5 mil. term loan: upgraded to 'IND BB-'/Stable from 'IND B+' -- INR19.5 mil. non fund based limit: upgraded to 'IND A4+' from 'IND A4' YOGAA AND CO: Ind-Ra Raises Long-Term Issuer Rating to 'IND B+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Yogaa and Co.'s Long-Term Issuer Rating to 'IND B+' from 'IND B-'. The Outlook is Stable. KEY RATING DRIVERS The upgrade reflects the company's improved liquidity position. The average utilization of its limits improved to around 95% during the 12 months ended January 2016 from full utilization for the 12 months ended March 2015. The ratings also reflect the company's strong credit profile with interest coverage of 3.8x in FY15 (FY14: 4.3x), net financial leverage of 2.1x (2x) and moderate operating margins of 8.6% (10.3%). The ratings also derive support from the two-decade-long experience of Yogaa's partners' in the construction business. However, the ratings are constrained on account of Yogaa's small scale of operations, as reflected in its revenue of INR268 mil. during FY15, the partnership nature of the business and high- geographical-concentration risk, as the company mainly executes projects in Karnataka and Tamil Nadu. RATING SENSITIVITIES Positive: An improvement in the scale of operations while maintaining the credit profile will be positive for the ratings. Negative: A reduction in profitability leading to deterioration in credit metrics will be negative for the ratings. COMPANY PROFILE Incorporated in 2007, Yogaa constructs roads and bridges. It executes orders mainly for government enterprises such as Public Works Department and National Highway Authority of India ('IND AAA'/Stable) and is managed by A.D. Meenaachisundram. The company had an order book of INR712.85 mil. at end-October 2015, which is slated to be executed within the two years. Yogaa's ratings: -- Long-Term Issuer Rating: upgraded to 'IND B+' from 'IND B-'; Outlook Stable -- INR50 mil. fund-based limit: upgraded to 'IND B+'/Stable from 'IND B-' -- INR100 mil. non-fund-based limit: affirmed at 'IND A4' ========= J A P A N ========= TOSHIBA CORP: Plans to Sell Entire Medical Unit ----------------------------------------------- Junko Fujita and Emi Emoto at Japan Today reports that struggling Toshiba Corp plans to sell its entire medical equipment unit rather than just a controlling stake, people familiar with the matter said, adding that aggressive bidding could value the business at much more than initial estimates of JPY500 billion. Japan Today says the deal is seen as crucial to bolstering Toshiba's finances as the industrial conglomerate has been grappling with the fallout from a damaging accounting scandal. Rising restructuring costs have prompted management to pursue an entire sale of Toshiba Medical Systems Corp, the sources said, Japan Today relays. According to Japan Today, people familiar with sale process said a price tag between JPY400 billion to JPY500 billion was a reasonable value for the unit. But one person said the deal value could go as high as JPY650 billion amid strong demand for medical businesses with high growth prospects, Japan Today relates. Global buyout firm KKR & Co as well as Canon Inc, Fujifilm Holdings Corp and Konica Minolta Inc, Japanese imaging firms with medical device units, have been shortlisted for the second round of bidding, they said. The deadline for the bids is on March 4, Japan Today discloses. KKR has partnered with trading house Mitsui & Co, while Konica Minolta has partnered with Permira, the sources added, Japan Today relays. The people asked not to be identified because they are not authorised to speak to the media, Japan Today says. Toshiba and representatives of all short-listed parties declined to comment on the deal. Toshiba has previously said it was planning to sell either a controlling holding or the entire stake but has so far not specified which, adds Japan Today. About Toshiba Corp. The Troubled Company Reporter-Asia Pacific, citing Reuters, reported on July 22, 2015, that an independent investigation said in a report dated July 21 that Toshiba Corp. overstated its operating profit by JPY151.8 billion ($1.22 billion) over several years in accounting irregularities involving top management. The investigating committee said in a report filed by Toshiba to the Tokyo Stock Exchange that Toshiba President and Chief Executive Hisao Tanaka and his predecessor, Vice Chairman Norio Sasaki, were aware of the overstatement of profits and delay in reporting losses in a corporate culture that "avoided going against superiors' wishes," according to Reuters. The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that Toshiba Corp. President Hisao Tanaka and two other executives quit to take responsibility for a $1.2 billion accounting scandal that caused the maker of nuclear reactors and household appliances to restate earnings for more than six years. Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former president who was serving as adviser, also resigned, the Tokyo- based company said July 21, more than two months after announcing it was investigating possible accounting irregularities, according to Bloomberg. On Feb. 12, 2016, Moody's Japan K.K. has downgraded Toshiba Corporation's corporate family rating (CFR) and senior unsecured rating by three notches to B2 from Ba2. Moody's has also downgraded Toshiba's subordinated debt rating by 4 notches to Caa2 from B1, and affirmed its short-term rating of Not Prime. At the same time, B2 CFR and long-term senior unsecured bond ratings, as well as its Caa2 subordinated debt rating remain under review for further downgrade. On Feb. 9, 2016, Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit rating on Japan-based diversified electronics company Toshiba Corp. three notches to 'B+' from 'BB+' and its long-term senior unsecured debt rating two notches to 'BB' from 'BBB-'. The debt rating is two notches higher than the corporate credit rating, reflecting S&P's view that the probability of default in Toshiba's bonds is lower than that in its bank borrowings. S&P is keeping its long-term ratings on Toshiba on CreditWatch with negative implications, where S&P placed them Dec. 22, 2015, when it lowered the long-term corporate credit rating. S&P has affirmed its short-term corporate credit and commercial paper ratings on Toshiba. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. ==================== N E W Z E A L A N D ==================== STONEWOOD HOMES: Collapse is a Wake Up Call for All Directors ------------------------------------------------------------- Amanda Cropp at Stuff.co.nz reports that in the wake of the Stonewood Homes collapse, directors are being reminded that they face tough financial penalties if they fail to meet their legal responsibilities. Stuff.co.nz relates that Gerard Dale, a corporate law specialist with Christchurch law firm Lane Neave, said company directors came under close scrutiny when things went wrong, and when a company faced insolvency, they were at greatest risk of personal liability. "There are significant penalties for directors under the Companies Act and they could be liable for a fine of up to NZ$200,000 or up to five years imprisonment," the report quoted Mr. Dale as saying. Stonewood Homes New Zealand -- the master franchisor of the Stonewood Group -- and sister companies Stonewood Homes and Sterling Homes (Christchurch) were put into receivership on Feb. 22 owing about NZ$15 million to unsecured creditors. Receivers are still calculating the outstanding debt to secured creditors, the report says. Under the Companies Act, Mr. Dale said directors were not meant to allow a company to take on extra obligations it might not be able to meet, and a two part insolvency test applied, according to Stuff.co.nz. "[It] shows whether the company is able to pay its debts as they become due in the normal course of business, and that the value of the company's assets is greater than its liabilities, including contingent liabilities," Mr. Dale, as cited by Stuff.co.nz, said. Stuff.co.nz relates that Mr. Dale said directors may also be personally liable to creditors under the Fair Trading Act for misleading and deceptive conduct if they knowingly misled creditors about the solvency of the company, and its ability to pay its debts. "Creditors may be able to take action against directors personally if they were wrongly reassured that the company was in a stronger financial position than it was. "Directors must act in the best interests of the company. They can take prudent business risks but they cannot make rash business decisions that may put a creditor at risk." In 2014, Stonewood Homes received bad publicity over claims of poor workmanship, Stuff.co.nz says. Director Brett Mettrick said the company had struggled with the rapid expansion of the post- earthquake building market, the report relays. Soon after the company hired former Central Christchurch Development Unit director Warwick Isaacs, former Christchurch Airport boss Jim Boult and former Meridian Energy finance head Neil Cochrane to turn its fortunes around, according to Stuff.co.nz. Mr. Boult stood down as a director this month citing a conflict of interest, Stuff.co.nz notes. Stonewood Homes New Zealand Limited is the master franchisor for the Stonewood Homes network. Stonewood Homes Limited holds the Stonewood franchise for Christchurch. Grant Graham and Neale Jackson of KordaMentha have been appointed as receivers to Stonewood Homes New Zealand Limited, and sister companies Stonewood Homes Limited and Sterling Homes Limited. The appointment was requested by the companies' director. ================ S R I L A N K A ================ SRI LANKA: Fitch Cuts Long-Term Issuer Default Ratings to 'B+' -------------------------------------------------------------- Fitch Ratings has downgraded Sri Lanka's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. A Negative Outlook has been assigned to the IDRs. The issue ratings on Sri Lanka's senior unsecured foreign- and local-currency bonds are also downgraded to 'B+' from 'BB-'. The Country Ceiling is downgraded to 'B+' from 'BB-' and the Short-Term Foreign-Currency IDR is affirmed at 'B'. KEY RATING DRIVERS The rating action reflects the following key rating drivers: -- Increasing refinancing risks. The Sri Lankan sovereign faces increased refinancing risks on account of high upcoming external debt maturities. Further, the sovereign's external liquidity position remains strained, reflecting pressure on foreign exchange reserves. In Fitch's view, this partly reflects a weakening in policy coherence that increases the likelihood of Sri Lanka requiring external liquidity support from the IMF and other multilateral institutions. Sri Lanka's external liquidity ratio, as measured by Fitch at the end of 2015, was 70.9%, which is far below the median of 'B'-rated peers' of 171.9% and the 'BB' median of 152.4%. -- Significant debt maturities. Sri Lanka faces significant debt maturities in 2016 amid the country's vulnerability to a shift in investor sentiment. Fitch estimates the sovereign's external debt service to be close to $US 4billion for the rest of 2016, compared with FX reserves of $US 6.3billion (end- January 2016). Sri Lanka's vulnerability to a shift in investor sentiment was evident when investors sold-off the equivalent of nearly $US 2billion in local-currency government securities in 2015. A further outflow from treasury bills and treasury bonds, which account for about 31% of the country's FX reserves, could put more pressure on reserves. However, prevailing low oil prices will continue to support Sri Lanka's current-account deficit in the near term. Fitch expects the current-account deficit to remain manageable at about 3% of GDP over 2016-17. -- Weaker public finances. The deterioration in Sri Lanka's fiscal finances is driven partly by consistently low general government revenues. At an estimated 13% of GDP, Sri Lanka's gross general government revenues remain far below the 'B' median of 25.4% and the 'BB' median of 26%. The 2016 budget did little to address this issue directly and absent any significant fiscal consolidation, Fitch expects continued fiscal slippage over 2016-17. Sri Lanka's gross general government debt (GGGD) burden is estimated to have increased to more than 75% of GDP by the end of 2015, up from 71% at the end of 2014 and much higher than the 'B' median of 52% of GDP and 'BB' median of 43.6%. -- Decline in foreign-exchange reserves. Fitch has revised downwards its forecast for foreign-exchange reserves, with reserve coverage of current external payments now forecast to decline to 2.9 months in 2016 from an estimated 3.4 months in 2015. This forecast compares unfavourably with Fitch's earlier forecast of 3.9 months for 2016 and is well below the 'BB' median of 4.2 months. While the authorities have undertaken certain measures to support external finances, including entering into bilateral swaps with other central banks, Fitch does not view this to be a sustainable way to improve the stability of the external finances. -- Foreign-currency debt portion remains high. Sri Lanka has also increased its issuance of foreign-currency debt, which Fitch estimates now makes up close to 46% of total public debt, up from nearly 42% at the end of 2014. This has increased vulnerability of Sri Lanka's public debt to a significant depreciation of the exchange rate, which would increase the debt burden in local currency terms. -- Favourable economic growth. Sri Lanka's macroeconomic performance remains stronger than some of its peers' in the 'B' and 'BB' range with real GDP growth for the five-year period ending 2015 averaging close to 6%, compared with the 'B' median of 4.6% and 'BB' median of 3.9%. Sri Lanka also continues to score highly, compared with the 'B' median, on basic human development indicators, such as education, health and literacy, which is indicated by its favourable ranking in the UN's Human Development Index. These relative structural strengths, combined with a clean external debt service record and smooth transition of power during the presidential and parliamentary elections in 2015 indicates a basic level of political stability, which supports the rating at 'B+'. RATING SENSITIVITIES The Negative Outlook reflects the following risk factors that could, individually or collectively, result in a downgrade of the ratings: -- A further increase in external vulnerability driven by a sustained decline in FX reserves reflecting, for instance, reduced international market access and/or a sudden reversal in portfolio inflows. -- A further deterioration in policy coherence and credibility that widens macroeconomic imbalances and/or heightens external vulnerabilities. -- Continued fiscal slippage resulting in a failure to stabilise the general government debt ratio. The main factors that could, individually or collectively, lead to a revision of the Outlook to Stable are: -- Implementation of a predictable and robust policy framework leading to a reduction in risks to basic economic and financial stability. -- Improvement in Sri Lanka's public finances underpinned by a credible medium-term fiscal consolidation strategy, including a broadening of the general government revenue base. -- Sustained smaller current-account deficits with higher levels of non-debt capital inflows (FDI) and an increase in foreign exchange reserves. KEY ASSUMPTIONS -- There is no renewal in the civil conflict that previously lasted 26 years and ended in 2009. -- Global economic assumptions are consistent with Fitch's latest Global Economic Outlook. =============== X X X X X X X X =============== * 2016 High-Yield Corporate Default Rate Will Stay at 3.2% ---------------------------------------------------------- Moody's Investors Service says that the trailing 12-month Asian high-yield corporate default rate at end-2016 will stay at a moderate 3.2%. The forecast -- using Moody's Credit Transition Model -- translates to five potential defaulters during 2016. However, Moody's also notes the large element of uncertainty around this forecast, and that the nine defaults recorded in 2015 were the highest since 2009. "The 3.2% default forecast for Asian high-yield corporates for 2016 reflects the profile and distribution of our rated portfolio," says Clara Lau, a Moody's Group Credit Officer. "The forecast also incorporates our expectation of monetary policy in the region remaining accommodative which will result in most rated corporates showing manageable liquidity positions," adds Lau. "The metals and mining and oil & gas industries will likely account for the largest number of defaults in Asia in 2016," says Lau. Lau warns that the actual default rate for 2016 could be volatile, due to the small size of Moody's Asian speculative-grade portfolio. The challenging global economic outlook, volatile capital markets, as well as the occurrence of unexpected policy mishaps could also lead to market and liquidity volatility, resulting in a rapid deterioration of corporate credit profiles and more defaults. Lau was speaking on Moody's just-released report titled "Default Report: 2016 Asian Non-Financial Corporate High-Yield Default Rate to Stay Moderate". Moody's says that the depressed oil and commodities price situation will continue throughout 2016, driven by lower demand and oversupply. The very challenging environment will weaken materially the credit fundamentals of metals and mining as well as oil & gas companies; thereby resulting in a higher likelihood of defaults. The report points out that Moody's Asian high-yield corporate default rate ended 2015 at 6.4%, up from 3.9% in 2014. There were nine defaulters in 2015; the highest number since 2009. Six of the nine comprised Chinese companies, and contributed to a default rate of 9.7% for Moody's Chinese speculative-grade portfolio. By industry, five of the nine issuers operated in the coal mining and related industries, reflecting the very depressed state of the sector. Subscribers can access the report at: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1011501 ********* 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 ***