/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160711.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 Monday, July 11, 2016, Vol. 19, No. 135 Headlines A U S T R A L I A COMPASS RESOURCES: KordaMentha Appointed as Receivers GUVERA: Directors Fail to Present Plan at July 7 Meeting KENARDOBE PTY: Placed Into Administration VELOCITY SHEET: First Creditors' Meeting Set For July 18 C H I N A CEETOP INC: Cancels RMB3 Million Loan I N D I A 20 MICRONS: ICRA Suspends 'D' Rating on INR141.99cr LT Loan AAKASH INFRASTRUCTURE: CRISIL Rates INR250MM LT Loan at 'B' ALFA ELECTRONIC: CRISIL Assigns B+ Rating to INR75MM Cash Loan ARIEX ISPAT: CRISIL Lowers Rating on INR45MM LT Loan to B- ARJUN ALLOYS: CRISIL Suspends B+ Rating on INR150MM Cash Loan ARUN SHELTERS: CRISIL Reaffirms 'B' Rating on INR200MM LT Loan BAIT LOGITECH: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan BROCADE INDIA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan COCHIN VENEERS: CRISIL Suspends 'B' Rating on INR10.6MM Loan EVEREST STARCH: CRISIL Suspends B+ Rating on INR250MM Term Loan GURANDITTA MAL: ICRA Suspends 'B' Rating on INR20cr Loan HOLISTIC REMEDIES: CRISIL Reaffirms B+ Rating on INR50MM Loan IDEAL CHEMICALS: CRISIL Cuts Rating on INR130MM Cash Loan to B IFMR CAPITAL: ICRA Puts B (SO) Rating to INR2.64cr PTC Series A2 JAI HIND: CRISIL Suspends 'D' Rating on INR70MM Cash Loan JANPATH ESTATES: ICRA Suspends B+ Rating on INR25cr Loan JAYESH UMAKANT: CRISIL Suspends 'B' Rating on INR17.5MM Loan KINGSTON PAPTECH: CRISIL Suspends 'D' Rating on INR145MM Loan KRANTIVEER VASANTRAO: CRISIL Suspends D Rating on INR188.7MM Loan M.G. SPINTEX: CRISIL Assigns B+ Rating to INR48.5MM Cash Loan MANTRAM TECHNOFAB: ICRA Suspends B+ Rating on INR29cr Bank Loan NEPTUNE LAMINATES: CRISIL Reaffirms B+ Rating on INR44MM Loan NORTH BIHAR: CRISIL Suspends 'D' Rating on INR4.75BB Term Loan NOVELTY SALES: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating OM ENERGY: CRISIL Reaffirms B+ Rating on INR383.5MM Term Loan PAWAN COMMUNICATION: Ind-Ra Assigns 'IND BB' LT Issuer Rating PERFECT ENGINEERS: CRISIL Reaffirms B+ Rating on INR60MM Loan PHOENIX STRUCTURAL: ICRA Suspends 'C' Rating on INR12.88cr Loan PLANET PR: CRISIL Assigns 'B' Rating to INR80MM Cash Loan PRECISION ENGINEERING: CRISIL Suspends D Rating on INR71MM Loan PUNJAB LIQUORS: CRISIL Assigns B+ Rating to INR70MM Cash Loan R. R. DEVELOPERS: CRISIL Reaffirms B+ Rating on INR60MM Loan RAJASTHAN TOURS: CRISIL Assigns B+ Rating to INR35MM Cash Loan RAYBAN FEEDS: CRISIL Lowers Rating on INR120MM Cash Loan to 'D' RHYTHM LAND: CRISIL Lowers Rating on INR550MM LT Loan to 'D' RITU SHIPPING: CRISIL Suspends B- Rating on INR150MM Cash Loan SANCHETI PROPERTIES: CRISIL Puts B+ Rating on INR212.5MM Loan SHANKER INTERNATIONAL: ICRA Suspends B Rating on INR45cr Loan SHARDA TIMBER: ICRA Suspends 'B' Rating on INR35cr Loan SKYMAX CERAMIC: CRISIL Suspends B+ Rating on INR33.2MM LT Loan SRI GOKUL: CRISIL Reaffirms 'B' Rating on INR60MM Cash Loan SRI KODANDARAMA: ICRA Reaffirms B+ Rating on INR21.28cr LT Loan SRI VENKATESWARA: CRISIL Assigns B- Rating to INR256.6MM Loan SUMMIT JEWELLERY: CRISIL Lowers Rating on INR45MM Loan to B+ SUNBRIGHT CERAMIC: CRISIL Reaffirms B+ Rating on INR36MM Loan SUNSHINE EDIBLE: ICRA Assigns B+ Rating to INR5.0cr Cash Loan SUPER COTTON: CRISIL Suspends B+ Rating on INR64MM Cash Loan TANVIRKUMAR & CO: CRISIL Cuts Rating on INR112MM LT Loan to B+ V S METACAST: CRISIL Suspends 'B' Rating on INR120MM Cash Loan VICOR STAINLESS: CRISIL Suspends B+ Rating on INR70MM Cash Loan J A P A N TOSHIBA CORP: Three Former Heads Likely to Escape Charges S O U T H K O R E A HYUNDAI MERCHANT: Pins Hope On Credit Rating Rebound - - - - - ================= A U S T R A L I A ================= COMPASS RESOURCES: KordaMentha Appointed as Receivers ----------------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Compass Resources Limited has fallen into the hands of administrators on June 17, 2016. Martin Bruce Jones, Wayne Rushton and Dermott McVeigh of Ferrier Hodgson have been appointed administrators of the company. Subsequently, Rahul Goyal, Richard Tucker and John Bumbak of KordaMentha have been appointed receivers and managers of the company, Dissolve.com.au relates. The report says the assets and operations of Compass Resources are reportedly controlled by the receivers. Compass Resources Limited is an exploration, mining and minerals processing company. It focuses on Rum Jungle mineral field located close to Batchelor in Northern Territory Australia. GUVERA: Directors Fail to Present Plan at July 7 Meeting -------------------------------------------------------- Ben Butler at The Australian reports that directors of stricken music streaming service Guvera, led by Gold Coast entrepreneur Darren Herft, on July 7 failed to fulfil hopes they would present a rescue plan to creditors of two subsidiaries at meetings in Parramatta. Administrator Neil Cussen of Deloitte last month told The Australian he was hoping a deed of company arrangement (DOCA) setting out a plan to pay staff and creditors of Guvera Australia and Guv Services would be discussed at the meetings. But on July 7 Mr Cussen said he now hoped "to receive something towards the end of this week". "Once the proposal has been received and assessed, and after we conduct further investigations, we will prepare a report for creditors with a recommendation on the future of the companies," the report quotes Mr. Cussen as saying. The Australian recalls that Guvera in June 2016 pushed the two subsidiaries into administration, owing about AUD15 million after the ASX knocked back its audacious bid to list in an initial public offering valuing the group at more than AUD1bn. About 60 employees of Guv Services have been let go, but Mr Cussen has previously said about 20 have been re-employed elsewhere within Guvera, according to The Australian. Apart from staff, the main creditors are believed to be the Tax Office and music copyright collection society APRA AMCOS. The Australian notes that Guvera has also launched an emergency capital raising of between AUD15m and AUD20m -- about AUD10m of which Mr Cussen indicated might be used to pay creditors of Guvera Australia and Guv Services. "We advised creditors that we are aware of a private placement memorandum that has been placed before Guvera Ltd shareholders and investors which seeks to raise around AUD10m in the short term to support the DOCA proposal." No offer document has been registered with the Australian Securities & Investments Commission, which would be required if the raising targeted retail investors, The Australian states. Already at risk is about AUD180m pumped into the company by about 3000 investors, including a large number of self-managed super funds, through Mr Herft's AMMA Private Equity network, says The Australian. According to Guvera's prospectus, AMMA's efforts in raising capital for the company have reaped it more than AUD20m in fees since 2009, the report relays. A company spokesman did not respond when asked for more information about the capital raising, which he had previously said would be complete by the end of last week or early this week. As The Australian revealed on July 6, even as Guvera teetered on the brink AMMA has been raising money for a new start-up, Kwickie, helmed by the brother of Australia Post boss Ahmed Fahour. Kwickie, run by Mahamoud Fahour, promises to connect fans and celebrities via video chat. It embarked on a AUD5m capital raising last month, according to an accountant's note. Creditors of Guvera Australia and Guv Services will meet again on August 1, adds The Australian. KENARDOBE PTY: Placed Into Administration ----------------------------------------- Domenic Calabretta of Mackay Goodwin was appointed as administrator of Kenardobe Pty Limited on July 8, 2016. VELOCITY SHEET: First Creditors' Meeting Set For July 18 -------------------------------------------------------- Bradd William Morelli and Stewart William Free of Jirsch Sutherland were appointed as administrators of Velocity Sheet Metal & Airconditioning Pty Ltd on July 6, 2016. A first meeting of the creditors of the Company will be held at Level1, 14 Watt Street, in Newcastle, on July 18, 2016, at 11:00 a.m. ========= C H I N A ========= CEETOP INC: Cancels RMB3 Million Loan ------------------------------------- Ceetop Inc. loaned three million RMB to an individual which was secured by three million shares of common stock of the Company. On June 28, 2016 the Company determined that the Loan was uncollectible, and the holders of the Collateral agreed to cancel the Shares. In lieu of the cancellation of the Shares the Loan has been cancelled, as disclosed in a regulatory filing with the Securities and Exchange Commission. About Ceetop Inc. Oregon-based Ceetop Inc., formerly known as China Ceetop.com, Inc., owned and operated the online retail platform before 2013. Due to excessive competition in online retail, the Company has transformed itself into an integrated supply chain services provider, and focuses on B to B supply chain management and related value-added services among enterprises. Ceetop reported a net loss of $599,847 on $0 of sales for the year ended Dec. 31, 2015, compared to a net loss of $1.41 million on $361,887 of sales for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Ceetop Inc. had $3.22 million in total assets, $1.16 million in total liabilities, all current, and $2.05 million in total stockholders' equity. The Company's auditors MJF& Associates, APC, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company incurred recurring losses from operations, has a net loss of $599,847 and $1,415,949 for the years ended December 31, 2015 and 2014, respectively, and has accumulated deficit of $10,621,441 at December 31, 2015. ========= I N D I A ========= 20 MICRONS: ICRA Suspends 'D' Rating on INR141.99cr LT Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR141.99 crore long term fund based facilities and the INR31.08 crore short term non fund based facilities of 20 Microns Ltd. The suspension follows ICRA's inability to carry out a rating surveillance due to non cooperation from the firm. TMNML's (20 Microns Nano Minerals Ltd.) was originally incorporated under the name of Speciality Minerals Pvt. Ltd. on October 28, 1993. and the name was changed to its current form on November 12, 2008 w.e.f February 3, 2010, TMNML became a subsidiary of TML (20 Microns Ltd.) by way of acquisition of 99.17% of its shares by TML, prior to which it was an associate company of TML. TMNML is engaged in the manufacturing and trading of micronized minerals which are used as functional fillers, extenders and binders in industries as diverse as oil & gas, paints, rubber, paper, adhesives, ceramics, and construction. TMNML has an installed capacity of 9.900 metric tonnes per annum (MTPA) which is spread across two manufacturing locations in Gujarat & Rajasthan viz. Nandesari, Alwar and Waghodia. AAKASH INFRASTRUCTURE: CRISIL Rates INR250MM LT Loan at 'B' ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Aakash Infrastructure - Ahmedabad (AI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 250 CRISIL B/Stable The rating reflects AI's exposure to risks related to implementation and saleability of its ongoing project and cyclicality inherent in the Indian real estate sector. These weaknesses are partially offset by the experience of the promoters in the real estate and civil construction industry. Outlook: Stable CRISIL believes AI will continue to benefit from the extensive industry experience of the promoters. The outlook may be revised to 'Positive' if better-than-expected booking of units and receipt of customer advances lead to high cash inflow. The outlook may be revised to 'Negative' if time or cost overrun or slow ramp up in customer bookings leads to lower cash inflow and a weak financial risk profile, particularly liquidity. Set-up in July, 2014, AI is a partnership firm that undertakes real estate projects in 'vadh City' in Viramgam district of Gujarat. It is promoted by Mr. Yogesh Patel, Mr. Pursottam Patel, Mr. Suresh Patel and Mr. Anil Sanghvi. ALFA ELECTRONIC: CRISIL Assigns B+ Rating to INR75MM Cash Loan -------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Alfa Electronic Services India Private Limited (Alfa) and assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 (Assigned; Suspension Revoked) Cash Credit 75 CRISIL B+/Stable (Assigned; Suspension Revoked) CRISIL had earlier, on January 21, 2015, suspended the rating as Alfa had not provided the necessary information required for a rating review. The company has now shared the requisite information, enabling CRISIL to assign a rating to the firm's bank facilities. The ratings reflect Alfa's large working capital requirements, modest scale of operations and average financial risk profile marked by small net worth, moderate gearing and average debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of Alfa's promoters and the company's established relationships with its major customers. Outlook: Stable CRISIL believes that Alfa will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the company ramps up its scale of operations and registers more-than- expected revenues, resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case Alfa registers lower-than-expected revenues and profitability, or in case of further delay in the realisation of its receivables or if it undertakes a significantly large, debt-funded capital expenditure programme, resulting in deterioration in its financial risk profile. Alfa set up in 1991, manufactures embedded electronic systems such as amplifiers, integrated instrumentation and communication systems, and cable harnesses for various defense entities. The company is promoted by Mr. Sarat Chand and his family. Alfa reported a provisional profit after tax (PAT) of INR10.76 million on net sales of INR 273.47 million for 2015-16 (refers to financial year, April 1 to March 31), against a PAT of INR 11.17 million on net sales of INR 258.45 million for 2014-15. ARIEX ISPAT: CRISIL Lowers Rating on INR45MM LT Loan to B- ---------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Ariex Ispat Private Limited (AIPL) to 'CRISIL B-/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 27.5 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Long Term Loan 45.0 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') The downgrade reflects CRISIL's expectation that AIPL's business and financial risk profile will remain under pressure on account of declining operating profitability and inventory losses resulting from slump in steel prices. For 2015-16 (refers to financial year, April 1 to March 31), AIPL reported cash loss of INR4.5-5.0 million. AIPL's promoters infused INR3 million as unsecured loans to support the operations in 2015-16. CRISIL believes that while AIPL's promoters have supported the operations by infusing unsecured loans, high interest cost and repayment obligations, along with weak profitability, will result in heightened pressure on its liquidity over the medium term. The rating reflects working capital-intensive operations, weak capital structure, and vulnerability to raw material price volatility. These rating weaknesses are partially offset by the extensive experience of promoters in the steel industry and their established relationships with suppliers and customers. Outlook: Stable CRISIL believes AIPL's liquidity will remain under pressure over the medium term backed by weak profitability and high working capital intensity. The outlook may be revised to 'Positive' in case of improvement in the business risk profile with sizeable offtake for products manufactured at its facility, and a significantly better operating margin along with healthy cash accrual. Conversely, the outlook may be revised to 'Negative' if liquidity is further constrained by considerably low offtake and consequently reduced cash accrual. AIPL was set up by the Ramlavat family in 2012 in Himatnagar, Gujarat. It manufactures mild steel square bars, flat bars, angle bars, channel bars, and section bars, in various sizes. It began commercial operations in February 2014. AIPL reported net loss estimated at INR7.9 million on net sales of around INR170 million for 2015-16 against net loss of INR5.5 million on net sales of INR174.1 million for 2014-15. ARJUN ALLOYS: CRISIL Suspends B+ Rating on INR150MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Arjun Alloys (AA; part of the Agarwal group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 9.2 CRISIL A4 Cash Credit 150.0 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 5.0 CRISIL B+/Stable Term Loan 20.0 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by AA with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AA is yet to provide adequate information to enable CRISIL to assess AA's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AA, Vivek Steelco Private Limited (VSPL), Shubhlaxmi Castings Private Limited (SCPL), Anjani Re- Rolling Mills Private Limited (ARMPL), and VS Multimetal Pvt Ltd (VSMPL). This is because all these entities, together referred to as the Agarwal group, have the same promoters and management and significant intra-group transactions. AA has induction furnace units at its manufacturing facility at Changodar (Gujarat). The firm is part of the Agarwal group, which has been manufacturing various steel products since 1972. Mr. Suresh B Agarwal is the chairman of the group. The other entities in the Agarwal group-VSPL, SCPL, ARMPL, and VSMPL-are also engaged in similar businesses. While, SCPL has induction furnace units, VSPL, ARMPL, and VSMPL have rolling mills. ARUN SHELTERS: CRISIL Reaffirms 'B' Rating on INR200MM LT Loan -------------------------------------------------------------- CRISIL rating to the long term bank facility of Arun Shelters Private Limited (ASPL) continues to reflect the company's exposure to risks inherent in real estate sector and implementation-related risks in the company's ongoing projects. These rating weaknesses are partially offset by ASPL's promoters' extensive experience in the real estate industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 200 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that ASPL's business risk profile will benefit over the medium term on account of the extensive experience of its promoters in commercial real estate development. The outlook may be revised to 'Positive' in case ASPL is able to generate revenues as expected and achieves larger-than-expected bookings, thereby strengthening its financial flexibility and cash flow adequacies. Consequently, the outlook may be revised to 'Negative' if there are delays or/and cost overruns in project execution or/and the offtake of the ongoing project is less than expected. Update Currently the company is undertaking two project development of luxury Villas in North Bengaluru named as Arun Aurovilla (Near Jakur check post) and a project for construction of luxury apartments is at Yelhanka named as Arun Kaustubha. ASPL is expected to benefit from its favourable brand image. CRISIL expected high booking rates due to absence of any major luxury segment projects (villas) in Yelhanka region and other parts of north Bangalore. Further, the company is venturing also venturing into luxury segment apartments through the planned project. High disposable income in Bengaluru coupled with prime location of the projects benefits the company's business risk profile. The company has booked 11 of the 85 villas , all the 11 villa are 90 percent complete and possession is expected to handed by month end of June 2016. The company has availed a term loan for its Arun Aurovilla project for which its repayments are to be made in 4 quarterly instalments commencing from June 2016. Arun Shelters Private Limited (ASPL) was incorporated in the year 2005 is engaged in execution residential projects primarily in Bangalore, Karnataka. The company is being promoted by Mr Arun Kumar .M and his family. BAIT LOGITECH: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Bait Logitech Private Limited (BLPL) continue to reflect the company's small scale of operations, and its subdued financial risk profile, marked by small networth and below-average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 66 CRISIL A4 (Reaffirmed) Cash Credit 55 CRISIL B+/Stable (Reaffirmed) These weaknesses are partially offset by the extensive experience of its management in the logistics and liaison services industry. Outlook: Stable CRISIL believes BLPL will continue to benefit from its experienced management team. The outlook may be revised to 'Positive' if there is significant increase in revenue and operating margin, while capital structure remains stable. The outlook may be revised to 'Negative' in case of lengthening in working capital cycle, or deterioration in capital structure due to large debt-funded capital expenditure. BLPL was incorporated in May 2010 in Bhubaneswar. The company, promoted by Mr. Brahma Nanda Mishra, was set up to provide logistics and liaison services for the iron ore mining industry. It also fabricates heavy steel structures, and provides project and mining consultancy services. Its manufacturing unit is at Tangi in Odisha. BROCADE INDIA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan -------------------------------------------------------------- CRISIL's rating on the bank facilities of Brocade India Polytex Limited (BIPL) continue to reflect BIPL's modest scale of operations and the susceptibility of its operating profitability to volatility in raw material prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable (Reaffirmed) Long Term Loan 45 CRISIL B+/Stable (Reaffirmed) These weaknesses are partially offset by the company's moderate financial risk profile marked by healthy gearing and the entrepreneurial experience of its management team. Outlook: Stable CRISIL believes BIPL will continue to benefit over the medium term from its management's entrepreneurial experience. The outlook may be revised to 'Positive' in case of higher-than- expected operating income, resulting in a substantial increase in cash accrual, along with improvement in working capital management. Conversely, the outlook may be revised to 'Negative' in case of low revenue or profitability, or large debt contracted for funding working capital requirement or capital expenditure, resulting in weakening of the company's financial risk profile. BIPL, incorporated in 2012, manufactures polypropylene fabrics and woven sacks. The company is promoted by Mr. Anwar Sahad and Mr. Ebrahim Hasan. COCHIN VENEERS: CRISIL Suspends 'B' Rating on INR10.6MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Cochin Veneers (CV). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL B/Stable Letter of Credit 40 CRISIL A4 Proposed Cash Credit Limit 10.6 CRISIL B/Stable Proposed Term Loan 0.4 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by CV with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CV is yet to provide adequate information to enable CRISIL to assess CV's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1988, CV trades in timber and manufactures veneers. The firm's day-to-day operations are managed by its proprietor, Mr. P K Thomas. EVEREST STARCH: CRISIL Suspends B+ Rating on INR250MM Term Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Everest Starch India Private Limited (ESIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable Term Loan 250 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by ESIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ESIPL is yet to provide adequate information to enable CRISIL to assess ESIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in June 2011, ESIPL is engaged in starch and glucose manufacturing in Rajkot (Gujarat). GURANDITTA MAL: ICRA Suspends 'B' Rating on INR20cr Loan -------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR20 crore fund based facilities of Guranditta Mal Mohan Lal. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. HOLISTIC REMEDIES: CRISIL Reaffirms B+ Rating on INR50MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Holistic Remedies Pvt Ltd (HRPL) continues to reflect the company's modest scale of operations, large working capital requirement, moderate profitability, and subdued financial risk profile because of weak capital structure. These weaknesses are partially offset by significant experience of its promoters in the homeopathy drugs segment, and their funding support. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 5 CRISIL B+/Stable (Reaffirmed) Term Loan 5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes HRPL will continue to benefit from its promoters' significant industry experience and their financial support. The outlook may be revised to 'Positive' if growth in revenue and profitability increases cash accrual, or equity infusion by promoters results in a better capital structure. The outlook may be revised to 'Negative' in case of stretched working capital cycle or large debt-funded capital expenditure, leading to deterioration in the financial risk profile. HRPL, incorporated in 1986, manufactures homeopathic medicines in collaboration with Bioforce AG, a Switzerland-based company. HRPL is promoted and managed by Dr. Nalini Batra and Dr. Pranav Batra, and has its registered office at Thane, Maharashtra. IDEAL CHEMICALS: CRISIL Cuts Rating on INR130MM Cash Loan to B -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Ideal Chemicals India Private Limited (ICI) to 'CRISIL B/Stable' from 'CRISIL B+/Stable' and has reaffirmed its rating on the short-term bank facility at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Letter Of Guarantee 20 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 80 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The rating downgrade reflects deterioration in the business risk profile of the company because of a decline in revenue and cash accrual. Revenue declined by around 11 per cent year-on-year to INR1.1 billion in 2015-16 (refers to financial year, April 1 to March 31) on account a fall in chemical prices. Though operating profitability is estimated to have been at a similar level as in 2014-15, cash accrual has reduced. Consequently, financial risk profile has weakened. Networth remained below-average at INR42.4 million as on March 31, 2016 against INR37.6 million as on March 31, 2015, while interest coverage ratio declined to 1.79 times in 2015-16 from 2.07 times in the previous year. The ratings reflect a below-average financial risk profile because of a small networth, modest debt protection metrics, and high total outside liabilities to tangible networth ratio. This rating weakness is partially offset by an established relationship with suppliers, and the extensive experience the company's promoters in the chemicals trading business. Outlook: Stable CRISIL believes ICI will continue to benefit over the medium term from its established relationship with suppliers. The outlook may be revised to 'Positive' in case of an improvement in the financial risk profile, most likely because of substantial equity infusion or large accretion to reserves. Conversely, the outlook may be revised to 'Negative' if the financial risk profile, including its liquidity, weakens, driven by low cash accrual, a stretched working capital cycle, or any debt-funded capital expenditure. ICI was originally set up as a partnership firm in 1971; this firm was reconstituted as a private limited company in 2000. The company trades in chemicals used in the pharmaceutical, textile, steel, and fertiliser industries. It is managed by Mr. Sameer Sharda and Mr. Vipul Maheshwari. IFMR CAPITAL: ICRA Puts B (SO) Rating to INR2.64cr PTC Series A2 ---------------------------------------------------------------- ICRA had assigned Provisional [ICRA]BBB+(SO) rating and Provisional [ICRA]B(SO) rating to proposed PTC A1 and PTC A2 issuance by IFMR Capital Mosec Saturn 2016 backed by micro loan receivables originated by Intrepid Finance and Leasing Private Limited (Intrepid), Pahal Financial Services Private Limited (Pahal) and Samasta Microfinance Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- PTC Series A1 16.24 [ICRA]BBB+(SO) PTC Series A2 2.64 [ICRA]B(SO) Since the executed transaction documents are in line with the rating conditions and the legal opinion and due diligence audit certificate have been provided to ICRA, the said ratings have now been confirmed as final. JAI HIND: CRISIL Suspends 'D' Rating on INR70MM Cash Loan --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Jai Hind Spinning Mills Limited (JHSML). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL D Letter of Credit Bill Discounting 50 CRISIL D Long Term Loan 22 CRISIL D The suspension of ratings is on account of non-cooperation by JHSML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JHSML is yet to provide adequate information to enable CRISIL to assess JHSML's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1992 by the late Mr. P M Pichai Chettiar, JHSML manufactures combed cotton yarn at its manufacturing unit in Namakkal (Tamil Nadu). The company's operations are currently managed by the founder's son, Mr. Muthuswamy JANPATH ESTATES: ICRA Suspends B+ Rating on INR25cr Loan -------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating for the INR25.00 Crore bank facilities of Janpath Estates Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. JAYESH UMAKANT: CRISIL Suspends 'B' Rating on INR17.5MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Jayesh Umakant Nehete (JUN). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 35 CRISIL A4 Cash Credit 17.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by JUN with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JUN is yet to provide adequate information to enable CRISIL to assess JUN's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' JUN, established in 2011 by its proprietor Mr. Jayesh Nehete, is a Jalgaon (Maharashtra) based civil construction player dealing mainly in the construction of roads and bridges. JUN presently undertakes sub-contracted work orders from larger infrastructure players. The promoter's family has been in government tenders contracting business for the past 15 years. KINGSTON PAPTECH: CRISIL Suspends 'D' Rating on INR145MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kingston Paptech Private Limited (KPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 145 CRISIL D Letter of Credit 95 CRISIL D Proposed Long Term Bank Loan Facility 19 CRISIL D Term Loan 81 CRISIL D The suspension of ratings is on account of non-cooperation by KPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KPPL is yet to provide adequate information to enable CRISIL to assess KPPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 2009 and located in Sabarkantha (Gujarat), KPPL is promoted by Mr. Manohar Patel, Mr. Balwant Patel, Mr. Bharat Rudani, and Mr. Kalpesh Patel. The company manufactures multilayer kraft, kraft board, and kraft paper. KRANTIVEER VASANTRAO: CRISIL Suspends D Rating on INR188.7MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Krantiveer Vasantrao Narayanrao Naik Shikshan Prasarak Sanstha (KVN). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 188.7 CRISIL D The suspension of rating is on account of non-cooperation by KVN with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KVN is yet to provide adequate information to enable CRISIL to assess KVN's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' KVN was established in 1953. The society operates pre-primary schools, primary schools, secondary schools, a science-commerce- arts junior college, polytechnic institutes, industrial training institutes, an engineering institute, and a management institute. M.G. SPINTEX: CRISIL Assigns B+ Rating to INR48.5MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of M.G. Spintex Private Limited (MSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 28.5 CRISIL B+/Stable Bank Guarantee 12.5 CRISIL A4 Cash Credit 48.5 CRISIL B+/Stable The ratings reflect the extensive experience of the company's promoters in the cotton industry. This strength is partially offset by a modest scale of operations, susceptibility of profitability to volatility in raw material prices, exposure to intense competition, and weak financial risk profile because of a small networth. Outlook: Stable CRISIL believes MSPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if revenue and profitability increase significantly, leading to considerable improvement in cash accrual. The outlook may be revised to 'Negative' if significantly low cash accrual, sizable working capital requirement, or large debt-funded capital expenditure weakens the financial risk profile. Incorporated in 2005, MSPL is promoted by the Ahmedabad-based Modi family. The company has a spinning unit at Ahmedabad with a capacity of 15,500 spindles. MSPL had a net loss of INR3.7 million on sales of INR190.4 million in 2015-16 (refers to financial year, April 1 to March 31) on a provisional basis, against a net loss of INR10.4 million on sales of INR211.6 million in 2014-15. MANTRAM TECHNOFAB: ICRA Suspends B+ Rating on INR29cr Bank Loan --------------------------------------------------------------- ICRA has suspended rating of [ICRA]B+ assigned to the INR29.00 crore bank facilities of Mantram Technofab Private Limited (MTPL). The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MTPL is promoted jointly by Manjeet Group and Agarwal family of Sendhwa. Manjeet Group is essentially involved in cotton ginning & trading and also has small presence in spinning as well. The other shareholder, Agarwal family is engaged in agriculture, agro-based trading, cotton ginning & spinning and infrastructure development activities. MTPL has set-up a green field facility for manufacturing high density polyethylene (HDPE)/polypropylene (PP) woven fabrics and sacks in Sendhwa, Madhya Pradesh and commenced operations from November 2010. HDPE/PP bags are used for packing and transport of products in the cement, textiles, soapstone, fertilisers, food grains, chemicals and salt industries. It uses polymers such as HDPE and PP, which are primarily sourced domestically. NEPTUNE LAMINATES: CRISIL Reaffirms B+ Rating on INR44MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Neptune Laminates Private Limited (NLPL) continues to reflect NLPL's modest scale of operations in the highly competitive laminates industry and the company's weak financial risk profile, marked by high gearing and weak protection metrics. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the laminates industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Term Loan 44 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes NLPL will continue to benefit over the medium term from the industry experience of its promoters. The outlook may be revised to 'Positive' if revenue increases substantially and profitability improves, leading to higher-than-expected cash accrual and a better financial risk profile. The outlook may be revised to 'Negative' if revenue or operating margin is lower than expected, or in case of sizeable, debt-funded expansion or weakening of working capital management, resulting in deterioration in the financial risk profile. NLPL, incorporated in 2013, is promoted by the Veraval, Gujarat- based Limbani family and others. It manufactures laminates and started commercial production in January 2015. NLPL had sales of INR73.6 million for 2015-16 (refers to financial year, April 1 to March 31), against INR13.8 million for 2014-15. NORTH BIHAR: CRISIL Suspends 'D' Rating on INR4.75BB Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of North Bihar Highway Limited (NBHL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Short Term Loan 500 CRISIL D Term Loan 4750 CRISIL D The suspension of ratings is on account of non-cooperation by NBHL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NBHL is yet to provide adequate information to enable CRISIL to assess NBHL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in July 2010, NBHL is a special purpose vehicle (SPV) promoted by C&C Constructions Ltd (C&C) and BSCPL Infrastructure Ltd (BSCPL) for two-laning the Muzaffarpur- Sonbarsa section of National Highway 77 (from Kilometre [Km] 2.8 to Km 89.00) in Bihar on a design, build, finance, operate, and transfer annuity basis. NOVELTY SALES: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Novelty Sales a Long-Term Issuer Rating of 'IND B'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect NOVELTY's small scale of operations and weak credit profile. In FY15, its revenue was INR275.12 mil. (FY14: INR164.13 mil.), net financial leverage (total adjusted net debt/operating EBITDA) was 22.50x (15.23x) and gross interest coverage (operating EBITDA/gross interest expense) was 1.00x (0.86x). Its margins dipped to 0.74% in FY15 (FY14: 1.66%) due to the heavy discounts offered as well as advertisement and promotional expenses to increase its top line. Novelty's provisional FY16 financials indicated a top line of INR391.96 mil., EBITDA margins of 1.65%, interest coverage of 1.13x and net leverage of 7.27x. The ratings factor in NOVELTY's stressed liquidity position as evident from the 101% average utilization of its fund-based working capital limits during the 12 months ended May 2016. However, the ratings are supported by the company's promoters' operating experience of over 18 years in the auto industry. RATING SENSITIVITIES Positive: An improvement in the operating profitability, leading to improved interest coverage and liquidity profile, could lead to a positive rating action. Negative: A decline in the operating profitability, leading to deterioration in the credit metrics, could be negative for the ratings. COMPANY PROFILE Incorporated in 2012, NOVELTY is an authorised distributor of Mobis India Private Limited's (sister concern of Hyundai Motors India Limited) products in Amritsar district, Punjab. The firm is managed by two partners: S. Jatinder Singh and S. Luvtesh Singh. NOVELTY's ratings: -- Long-Term Issuer Rating: assigned 'IND B'; Outlook Stable -- INR40 mil. fund-based working capital limits: assigned 'IND B'/Stable/'IND A4' -- INR30 mil. non-fund-based working capital limits: assigned 'IND A4' -- Proposed INR20 mil. fund-based working capital limits: assigned 'Provisional IND B'/Stable/'Provisional IND A4' OM ENERGY: CRISIL Reaffirms B+ Rating on INR383.5MM Term Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of OM Energy Generation Private Limited (OEGPL) continues to reflect the company's exposure to risks related to implementation of its project for setting up a hydropower project. This rating weakness is partially offset by the extensive experience of OEGPL's top management in setting up hydropower projects, and expected support from its parent group. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 16.5 CRISIL B+/Stable (Reaffirmed) Rupee Term Loan 383.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes OEGPL will continue to benefit over the medium term from the favourable demand prospects for power, especially renewable energy. The outlook may be revised to 'Positive' if the company stabilises its operations earlier than expected and within the budgeted cost, resulting in large cash accrual, and hence, a better financial risk profile. The outlook may be revised to 'Negative' in case of significant time or cost overrun in the project, resulting in delay in commencement of operations and low cash accrual, thereby weakening the financial risk profile. Update OEGPL's project cost of INR639.4 million is being funded in a debt-to-equity ratio of 60:40. The company has been sanctioned debt of INR383.5 million, of which, INR189 million was disbursed by May 31, 2016. The promoters have put in INR140 million of their total contribution of INR255.9 million. The project was expected to be commissioned in August 2016. However, date of commission has been revised to April 2018 due to delay in transfer of land, which happened only in April 2015. The company has obtained the necessary approvals and clearances. Full-fledged civil construction started in May 2016, and the project is expected to be completed by December 2017. OEGPL, part of the OPG group, was incorporated in 2010 to execute a 7-megawatt hydropower project at Chamba in Himachal Pradesh. The company is promoted by Mr. Ravi Gupta and his family. Its operations are managed by director Mr. Dalip Dua. PAWAN COMMUNICATION: Ind-Ra Assigns 'IND BB' LT Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Pawan Communication Private Limited (PCPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect PCPL's small scale of operations and moderate credit profile. Provisional (P) FY16 financials indicate revenue of INR305 mil. (FY15: INR231 mil.), gross interest coverage of 4.5x (3.7x) and net financial leverage of 2.7x (1.2x). The ratings also reflect the entity's tight liquidity situation with its average maximum utilization of the working capital limits being above 100% for the six months ended May 2016. The ratings, however, are supported by PCPL's founders' experience of close to a decade in executing engineering, procurement and construction projects. RATING SENSITIVITIES Positive: An improvement in the scale of operations, along with maintenance of the current credit metrics, would lead to a positive rating action. Negative: Deterioration in the credit metrics may lead to a negative rating action. COMPANY PROFILE PCPL was incorporated in 2009 in Guwahati, Assam. The company undertakes turnkey engineering, procurement and construction projects such as the installation of optical fibre networks and laying of pipes and ducts in Assam as well as Northeast India. The business is based on confirmed purchase orders received from various reputed government and private clients such as Dishnet Wireless Limited, Reliance Jio Infocom and Himachal Futuristic Communication Limited. PCPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB'/ Stable -- INR30.00 mil. fund-based working capital limits: assigned 'IND BB'/ Stable -- INR20 mil. non-fund-based working capital limits: assigned 'IND A4+' PERFECT ENGINEERS: CRISIL Reaffirms B+ Rating on INR60MM Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Perfect Engineers & Contractors (PEC) continues to reflect PEC's modest scale of operations in the fragmented civil construction industry, the geographic concentration in its revenue, and its large working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 (Reaffirmed) Cash Credit 60 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by the extensive experience of PEC's promoters in the civil construction industry and the firm's moderate financial risk profile marked by comfortable debt protection metrics. Outlook: Stable CRISIL believes that PEC will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm scales up its operations significantly while improving its profitability, leading to substantial cash accruals and a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if PEC reports low revenue or profitability, or if its working capital management deteriorates resulting in weak liquidity, or if it undertakes a large debt-funded capital expenditure programme, leading to weakening of its financial risk profile. Set up in 1993 as a partnership firm, PEC undertakes civil construction work, primarily buildings in Kerala. The firm is based in Palakkad (Kerala) and its day-to-day operations are managed by Mr. M. Sunil and Mr. M. Sajeevan. PEC reported a profit after tax (PAT) of INR3.18 million on revenue of INR8.44 million for 2014-15 (refers to financial year, April 1 to March 31), against a PAT of INR7.8 million on revenue of INR119.5 million for 2013-14. PHOENIX STRUCTURAL: ICRA Suspends 'C' Rating on INR12.88cr Loan --------------------------------------------------------------- ICRA has suspended long-term rating of [ICRA]C and short-term rating of [ICRA]A4 assigned to the INR12.88 Crore bank facility of Phoenix Structural & Engineering Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. PLANET PR: CRISIL Assigns 'B' Rating to INR80MM Cash Loan --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Planet PR Appartment Private Limited (Planet PR). The rating reflects small scale of operations, large working capital requirements and susceptibility to unfavourable change in regulatory policies. These weaknesses are partially offset by the extensive experience of its promoters in the iron ore and coal trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable Outlook: Stable CRISIL believes Planet PR will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in its revenue and cash accrual, along with improvement in its working capital management. The outlook may be revised to 'Negative' in case of low operating income and accrual, or weakening of capital structure, or large debt-funded capital expenditure, leading to deterioration in its financial risk profile, particularly liquidity. Planet PR, promoted by Odisha-based Mr. Ranjan Kumar Pattanayak and Mr. Pradyumna Singh, trades in iron ore and coal. Its operations are primarily managed by Mr. Ranjan Kumar Pattanayak. PRECISION ENGINEERING: CRISIL Suspends D Rating on INR71MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Precision Engineering Components Private Limited (PEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL D Cash Credit 10 CRISIL D Term Loan 71 CRISIL D The suspension of ratings is on account of non-cooperation by PEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PEPL is yet to provide adequate information to enable CRISIL to assess PEPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Promoted by Mr. Ravi Bhojwani, PEPL manufactures fabricated and machined components at its newly set up workshop in Bhopal (Madhya Pradesh). It has capacity to undertake machining projects of about 20 tonnes. PUNJAB LIQUORS: CRISIL Assigns B+ Rating to INR70MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to long-term bank facility of Punjab Liquors Private Limited (PLPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Cash Credit Limit 70 CRISIL B+/Stable The rating reflects the modest scale of operations and average financial risk profile, because of the moderate total outside liabilities to tangible networth (TOL/TNW) ratio and debt- protection metrics. These weaknesses are partially offset by extensive experience of promoters and growing scale of operations in the liquor business. Outlook: Stable CRISIL expects the company to continue to benefit from extensive industry experience of promoters and diversity in operations. The outlook can be revised to 'Positive' if a stronger financial risk profile leads to improvement in the TOL/TNW ratio and debt- protection metrics. The outlook can be revised to 'Negative' if regulatory changes have an adverse impact on the financial risk profile. The Delhi-based company distributes both Indian Made Foreign Liquor (IMFL) and country liquor, primarily in Haryana. PLPL was incorporated in 2006 and promoted by Mr. Shiv Lala Doda, Mr. Gagan Doda and Mr. Arun Deep Doda. R. R. DEVELOPERS: CRISIL Reaffirms B+ Rating on INR60MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of R. R. Developers (RRD) continues to reflect a weak financial risk profile, given a small networth and high advances to RRD's sister concerns; the firm also remains exposed to cyclicality in the hospitality industry. These rating weaknesses are partially offset by the favourable location of its hotel, and the established brand image of the RR group in Lucknow, Uttar Pradesh, leading to a consistent increase in scale of operations. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 23 CRISIL B+/Stable (Reaffirmed) Term Loan 60 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes RRD will continue to benefit over the medium term from the reputation of its promoters in Lucknow. The outlook may be revised to 'Positive' if improved revenue and profitability or a decline in advances from its sister concerns leads to improvement in its financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' if a substantial decline in occupancy levels at RRD's hotel, or increase in advances to its sister concerns, or any large, debt- funded capital expenditure leads to deterioration in the financial risk profile. Incorporated in 2002 and promoted by the Lucknow-based Agarwal family, RRD is part of the RR group. The firm runs a budget hotel in Lucknow. RRD follows a franchise model and operates under the brand, Best Western Plus Levana. RAJASTHAN TOURS: CRISIL Assigns B+ Rating to INR35MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Rajasthan Tours Private Limited (RTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 23.4 CRISIL B+/Stable Cash Credit 35.0 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 1.6 CRISIL B+/Stable The ratings reflects RTPL's susceptibility to intense competition in tour operation segment leading to low profitability and cyclicality in travel and tourism industry. The above mentioned weaknesses are partially offset by the promoters' extensive industry experience and established relationship with customers in the tourism industry. The rating also factors in the company's above average financial risk profile, marked by a modest net worth, moderate total outside liabilities to tangible net worth ratio, and support from promoters in the form of unsecured loans. Outlook: Stable CRISIL believes that RTPL will continue to benefit over the medium term from its long standing experience of the promoters in tourism industry. The outlook may be revised to 'Positive' in case of a significant increase in its scale of operations and profitability leading to higher than expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the firm reports lower than expected cash accruals or if it undertakes a large debt-funded capital expenditure, leading to weakening in its financial risk profile. RTPL, a private limited company, incorporated in September 1959 is a travel company engaged in providing a range of services such as transport services, organizing sightseeing and excursions and travel and stay arrangements. It was founded by Mr. Bhim Singh who is the chairman and managing director of the company. Mrs. Madhuwanti Singh (Daughter of Mr. Bhim Singh) and Mrs. Rajkumari (Wife of Mr. Bhim Singh) are directors with the company and assists in the day to day operations of the company. RAYBAN FEEDS: CRISIL Lowers Rating on INR120MM Cash Loan to 'D' --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Rayban Feeds and Hatcheries Private Limited (RFHPL) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Long Term Loan 110 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Proposed Long Term 20 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB-/Stable') The downgrade reflects delays in repayment of principal and payment of interest on the outstanding term loan by more than two months. The total outstanding amount due as on June 25, 2016, was INR1.66 million; the delay is mainly because of weak liquidity due to low cash accrual and large working capital requirement driven by high inventory. The company has a modest scale of operations in the fragmented and competitive poultry farming industry. However, it benefits from the extensive industry experience of its promoters. Incorporated in 2011, RFHPL is engaged in poultry farming. The company was incorporated as a joint venture between the Elahi and Vadivel families, based in Hapur, Uttar Pradesh,-and Coimbatore, Tamil Nadu, respectively. It has a registered office in Coimbatore while its poultry farming unit is in Hapur; the unit commenced operations in fiscal 2014. RHYTHM LAND: CRISIL Lowers Rating on INR550MM LT Loan to 'D' ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facility of Rhythm Land Developers Private Limited (RLDPL) to 'CRISIL D' from 'CRISIL B+/Stable' on account of instances of irregularity in servicing the term debt. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 550 CRISIL D (Downgraded from 'CRISIL B+/Stable') RLDPL remains exposed to implementation risk on its project, which is still in the early stages, and to cyclicality in demand in the Indian real estate sector. The company however benefits from the promoters' extensive experience. Set up in 1995, RLDPL is executing a residential real estate project in Handewadi (Pune). Mr. Dharmesh Gathani, Mr. Gautam Budhrani, and Mr. Ramesh Bhatia are the promoters. RITU SHIPPING: CRISIL Suspends B- Rating on INR150MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Ritu Shipping Private Limited (RSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B-/Stable The suspension of rating is on account of non-cooperation by RSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RSPL is yet to provide adequate information to enable CRISIL to assess RSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 2004, RSPL trades in metal scrap. The company is promoted and managed by Mr. Suresh Agarwal and Mr. Vivek Agarwal. The company buys metal scrap from auctions and sells the same to induction furnace units and rolling mill units in Gujarat after cutting/polishing them as required. SANCHETI PROPERTIES: CRISIL Puts B+ Rating on INR212.5MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facility of Sancheti Properties (SP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 212.5 CRISIL B+/Stable The rating reflects the firm's below-average financial risk profile, due to debt contracted to fund setting up of the windmill. The rating also factors in risk of delay in receipt of payments for electricity sold, and cyclicality in the real estate industry. These rating weaknesses are partially offset by extensive experience of the promoters, established brand identity, and low exposure to implementation risk on ongoing project. Outlook: Stable CRISIL believes SP will continue to benefit over the medium term from the extensive experience of the promoters. The outlook may be revised to 'Positive' if customer bookings exceed expectations, or payments for power sold come in on time. Conversely, the outlook may be revised to 'Negative' if lower- than-expected advances from customers, and or stretch in payments weaken financial metrics. Part of the Sancheti group of Pune, SP develops real estate in Pune. The firm is developing two residential real estate projects in the city. It has also set up a 4.5 MW windmill. SHANKER INTERNATIONAL: ICRA Suspends B Rating on INR45cr Loan ------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR45 crore fund based and non fund based facilities of Shanker International Private Limited (erstwhile Shanker Timber Store). The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. SHARDA TIMBER: ICRA Suspends 'B' Rating on INR35cr Loan ------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR35 crore fund based, non fund based and proposed facilities of Sharda Timber Private Limited (erstwhile Sharda Timber Store). The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. SKYMAX CERAMIC: CRISIL Suspends B+ Rating on INR33.2MM LT Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Skymax Ceramic (SC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12 CRISIL A4 Cash Credit 25 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 33.2 CRISIL B+/Stable Term Loan 29.8 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SC is yet to provide adequate information to enable CRISIL to assess SC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' SC, incorporated in 2011, is promoted by the Morbi (Gujarat)- based Mr. Ashokkumar Patel, Mr. Sunilkumar Patel, and Mr. Kantilal Patel. The company is engaged in the manufacturing of ceramic porcelain floor tiles with a production capacity of 5500 boxes per day. SRI GOKUL: CRISIL Reaffirms 'B' Rating on INR60MM Cash Loan ----------------------------------------------------------- CRISIL's rating on the bank facilities of Sri Gokul Kannan Modern Rice Mill (SGK) continues to reflect SGK's small scale of operations in the intensely competitive rice milling industry and its below-average financial risk profile, marked by high gearing. These rating weaknesses are partially offset by the extensive experience of SGK's proprietor in the rice milling business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B/Stable (Reaffirmed) Long Term Loan 20 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SGK will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the firm's revenue and profitability increase substantially, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm undertakes aggressive, debt- funded expansions, or if its revenue and profitability decline significantly, leading to deterioration in its financial risk profile. Set up in 2007, SGK mills and processes paddy. The firm is managed by Mr. S A Ramar. For 2014-15 (refers to financial year, April 1 to March 31), SGK reported a net profit of INR0.8 million on net sales of INR243 million, as against a net profit of INR0.8 million on net sales of INR180 million for 2013-14. SRI KODANDARAMA: ICRA Reaffirms B+ Rating on INR21.28cr LT Loan --------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA] B+ assigned to the INR21.28 crore (revised from INR29.99 crore) fund based limits of Sri Kodandarama Boiled & Raw Rice Mill. ICRA has also reaffirmed the long-term rating of [ICRA] B+ and short-term rating of [ICRA] A4 assigned to INR8.72-crore (revised from INR0.01 crore) unallocated limits of SKBRRM. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund- based limits 21.28 [ICRA]B+ (Reaffirmed) Long Term/Short 8.72 [ICRA]B+ /[ICRA]A4 Term Unallocated (reaffirmed) limits The ratings reaffirmation continues to be constrained by the SKBRRM's modest financial risk profile characterised by low profitability and high gearing of 1.93 times as on March 31, 2016; and significant decline in revenue of the firm from INR80.17 crore in FY2015 to INR67.82 crore in FY2016 on account of decrease in total volume of sales and lower realisation. The abolishment of levy system resulted in increased supply of rice in open market, leading to increased competition and lower realisation and thereby revenues. The ratings also consider the intensely competitive nature of the rice industry amid several small-scale players and susceptibility to agro-climatic risks, which impact the availability of paddy in adverse weather conditions. However, the ratings draw comfort from the experience of the promoters in the rice industry, presence of the firm in a major rice growing area, resulting in easy availability of paddy, and favourable demand prospects of rice (with India being the second-largest producer and consumer of rice). Going forward, the firm's ability to improve its revenue, operating margins, while managing its working capital requirements effectively, will be the key credit-rating sensitivities. SKBRRM is a partnership firm established in 1980 and is engaged in the milling of paddy for production of non-basmati rice products (raw rice and boiled rice). The milling unit is located in East Godavari District, Andhra Pradesh with an installed capacity of 90,000 MTPA. Recent Results According to provisional FY2016 results, the firm has reported a turnover of INR67.82 crore with a net profit of INR1.02 crore. During FY2015, it recorded a turnover of INR80.17 crore with a net profit of INR1.31 crore. SRI VENKATESWARA: CRISIL Assigns B- Rating to INR256.6MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the long- term bank facilities of Sri Venkateswara Vidya Peeth (SVV). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 256.6 CRISIL B-/Stable Long Term Loan 25.0 CRISIL B-/Stable The rating reflects the Trust's exposure to regulatory changes and to intense competition in the education sector, and its weak financial risk profile. The rating also factors in the risks related to the Trust's ongoing project of setting up a polytechnic college. These rating weaknesses are partially offset by its established regional presence in the education sector, aided by its Trustee's extensive experience. Outlook: Stable CRISIL believes that VVS will continue to benefit over the medium term from the promoters' extensive experience. The outlook may be revised to 'Positive' if the Trust reports significant growth in revenue and profitability primarily through timely completion and ramp up of operations at its proposed polytechnic college. Conversely, the outlook may be revised to 'Negative' if SVV faces any significant time or cost overrun in its ongoing project or reports a steep decline in revenue and surplus or in case of adverse impact on the trust's financial risk profile because of regulatory or legal policies related to educational institutions. Sri Venkateswara Vidyapeeth (SVV) was founded in 1979 by the late Sri.S.Alwar Das (former Education Minister, Govt. of Andhra Pradesh). The Trust currently runs an English medium school, 2 management schools, 3 Junior colleges and 2 colleges in Vishakhapatnam, AP. The Trust belongs to the Alwar Das Group of Institutions based in Vishakhapatnam which runs around 26 educational institutions. The Chairman of the Trust is Sri. K. Phanibhushana Rao. The day to day operations are managed by Dr.Rajendra SVH (Secretary). SUMMIT JEWELLERY: CRISIL Lowers Rating on INR45MM Loan to B+ ------------------------------------------------------------ CRISIL has placed the ratings of Summit Jewellery LLP (Summit, part of TKC group) on 'Notice of Withdrawl' for a period of 180 days and downgraded the ratings by one notch to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'; the ratings will be withdrawn at the end of the notice period. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable'; Placed on 'Notice of Withdrawal') Foreign Discounting 19.8 CRISIL A4 (Downgraded from Bill Purchase 'CRISIL A4+'; Placed on 'Notice of Withdrawal') Packing Credit 13.2 CRISIL A4 (Downgraded from 'CRISIL BB-/Stable'; Placed on 'Notice of Withdrawal') Proposed Long Term 22.0 CRISIL B+/Stable (Downgraded Bank Loan Facility from 'CRISIL BB-/Stable'; Placed on 'Notice of Withdrawal') The downgrade reflects deterioration in the TKC group's business risk profile on account of decline in revenue and profitability leading to net loss of INR8.5 million in 2015-16 (refers to financial year, April 1 to March 31). Revenue fell to INR1.32 billion from INR1.36 billion in 2014-15, and operating profit dropped to 4 percent from 7.5 percent. Decline in profitability also weakened debt protection metrics. Interest coverage ratio was less than 1 time in 2015-16 against 1.75 percent in 2014-15. The ratings reflect the group's large working capital requirement, exposure to intense competition in the gems and jewellery business resulting in modest profitability, and susceptibility to fluctuations in diamond prices and foreign exchange rates. These weaknesses are partially offset by extensive experience of its promoters in the gems and jewellery business, its established relationships with customers, and above-average financial risk profile because of moderate networth and modest total outside liabilities to tangible networth ratio, despite below-average debt protection metrics. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Tanvirkumar & Co (TKC), Tanvirkumar Diamond Ltd (TDL), Summit, and Eternity Jewels (Eternity). This is because all the entities, collectively referred to as the TKC group, have common promoters, are in the same line of business, and have significant operational linkages and fungible cash flow. From September 2015, the businesses of Summit, TDL, and Eternity have been transferred to TKC, and Summit and TDL have become partners in TKC. Outlook: Stable CRISIL believes the TKC group will continue to benefit over the medium term from its promoters' extensive industry experience and its established customer relationships. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in profitability with stable revenue, or if there is a sustained improvement in its working capital cycle. The outlook may be revised to 'Negative' in case of lower-than-expected improvement in profitability, or significant deterioration in capital structure because of stretch in working capital cycle. TKC (erstwhile, Milan Jewellers) was set up in 1976 by Mr. Kirtilal Chokshi and Mr. Kanti Jhaveri. It manufactures and trades in polished diamonds. Mr. Milan Choksi and Mr. Mihir Jhaveri are active partners in the firm, while Mr. Shanay Choksi and Mr. Nailesh Choksi are dormant partners. Summit, set up in 1996, manufactures diamond studded jewellery for domestic and overseas markets. Mr. Milan Choksi, Mr. Shanay Choksi, and Kamlesh Jhaveri are partners in the firm. It has a showroom in Mumbai. TDL was originally set up in 1966 as a partnership concern, and was reconstituted as a closely held public limited company in 1995. It was the flagship company of the group. It trades in polished diamonds for domestic and international markets. Eternity, set up in 1996, manufactures diamond studded jewellery. It is based in Mumbai and derives its entire revenue from export. SUNBRIGHT CERAMIC: CRISIL Reaffirms B+ Rating on INR36MM Loan ------------------------------------------------------------- CRISIL's ratings on the bank loan facilities of Sunbright Ceramic Private Limited (SCPL) continue to reflect the company's initial stage and modest scale of operations in the highly competitive ceramic tiles industry, and large working capital requirement. These rating weaknesses are partially offset by the extensive industry experience of its promoters and benefits derived from its favourable location in Morbi, Gujarat, the hub of the ceramics industry in India. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 (Reaffirmed) Cash Credit 25 CRISIL B+/Stable (Reaffirmed) Long Term Loan 36 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 4 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes SCPL 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 a significant increase in topline while operating margin is maintained, or infusion of equity to support liquidity. The outlook may be revised to 'Negative' if the financial risk profile weakens, driven most likely by significantly low cash accrual, substantial working capital requirement, or debt-funded capital expenditure. SCPL, established in Morbi in 2014, is promoted by Mr. Jayantilal Pranjivanbhai Detroja, Mr. Kantilal Sundarjibhai Padaliya, and Mr. Narendrabhai Sundarjibhai Padaliya. The company manufactures digital wall tiles; it commenced operations in December 2014. SUNSHINE EDIBLE: ICRA Assigns B+ Rating to INR5.0cr Cash Loan ------------------------------------------------------------- ICRA has assigned its long term rating of [ICRA]B+ to the INR10.00 crore fund-based bank facilities of Sunshine Edible Oils (SOI). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Cash Credit 5.00 [ICRA]B+; Assigned Long Term-Term Loan 5.00 [ICRA]B+; Assigned ICRA's rating takes into account limited track record of operations of the firm coupled with the risk of the stabilization of the new plant and achievement of the expected yields with adequate level of capacity utilization. The rating also factors in the low profitability in the oil processing business and the fragmented nature of the industry leading to intense competition; the exposure of the profitability margins to the adverse price fluctuation of the raw materials and the debt repayments in the near to medium term owing to the debt-funded capital expenditure which may exert pressure on liquidity. However, the rating draws comfort from the extensive experience of the promoters in the oil trading business and proximity of the plant to the mustard seed belt in Rajasthan. Further, ICRA also notes the timely completion of the project as per the estimated costs and a moratorium period of nine months for the loan repayment from the commencement of the plant. Going forward, the ability of the firm to stabilize its operations and achieve adequate level of capacity utilization and contribution margin will be the key rating sensitivities. Constituted in December 2014, SEO is a partnership firm engaged in the extraction of mustard oil from its plant based out of Kishangarh with a capacity of 57600 quintals per annum. The firm is being promoted by Jain and Mittal family of Kishangarh and the plant commenced its commercial production in May 2016. SUPER COTTON: CRISIL Suspends B+ Rating on INR64MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of Super Cotton Industries (SCI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 64 CRISIL B+/Stable Term Loan 25.5 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by SCI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCI is yet to provide adequate information to enable CRISIL to assess SCI's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Established in 2013, SCI is a partnership firm based at Soyal in the Jamnagar district of Gujarat. The firm commenced operations from January 2014. TANVIRKUMAR & CO: CRISIL Cuts Rating on INR112MM LT Loan to B+ -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Tanvirkumar & Co (TKC; part of TKC group) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Post Shipment Credit 533 CRISIL A4 (Downgraded from 'CRISIL A4+') Proposed Long Term 112 CRISIL B+/Stable (Downgraded Bank Loan Facility from 'CRISIL BB-/Stable') The downgrade reflects deterioration in the TKC group's business risk profile on account of decline in revenue and profitability leading to net loss of INR8.5 million in 2015-16 (refers to financial year, April 1 to March 31). Revenue fell to INR1.32 billion from INR1.36 billion in 2014-15, and operating profit dropped to 4 percent from 7.5 percent. Decline in profitability also weakened debt protection metrics. Interest coverage ratio was less than 1 time in 2015-16 against 1.75 percent in 2014-15. The ratings reflect the group's large working capital requirement, exposure to intense competition in the gems and jewellery business resulting in modest profitability, and susceptibility to fluctuations in diamond prices and foreign exchange rates. These weaknesses are partially offset by extensive experience of its promoters in the gems and jewellery business, its established relationships with customers, and above-average financial risk profile because of moderate networth and modest total outside liabilities to tangible networth ratio, despite below-average debt protection metrics. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of TKC, Tanvirkumar Diamond Ltd (TDL), Summit Jewellery LLP (Summit), and Eternity Jewels (Eternity). This is because all the entities, collectively referred to as the TKC group, have common promoters, are in the same line of business, and have significant operational linkages and fungible cash flow. From September 2015, the businesses of Summit, TDL, and Eternity have been transferred to TKC, and Summit and TDL have become partners in TKC. Outlook: Stable CRISIL believes the TKC group will continue to benefit over the medium term from its promoters' extensive industry experience and its established customer relationships. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in profitability with stable revenue, or if there is a sustained improvement in its working capital cycle. The outlook may be revised to 'Negative' in case of lower-than-expected improvement in profitability, or significant deterioration in capital structure because of stretch in working capital cycle. TKC (erstwhile, Milan Jewellers) was set up in 1976 by Mr. Kirtilal Chokshi and Mr. Kanti Jhaveri. It manufactures and trades in polished diamonds. Mr. Milan Choksi and Mr. Mihir Jhaveri are active partners in the firm, while Mr. Shanay Choksi and Mr. Nailesh Choksi are dormant partners. Summit, set up in 1996, manufactures diamond studded jewellery for domestic and overseas markets. Mr. Milan Choksi, Mr. Shanay Choksi, and Kamlesh Jhaveri are partners in the firm. It has a showroom in Mumbai. TDL was originally set up in 1966 as a partnership concern, and was reconstituted as a closely held public limited company in 1995. It was the flagship company of the group. It trades in polished diamonds for domestic and international markets. Eternity, set up in 1996, manufactures diamond studded jewellery. It is based in Mumbai and derives its entire revenue from export. V S METACAST: CRISIL Suspends 'B' Rating on INR120MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of V S Metacast Private Limited (VSMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 7.5 CRISIL A4 Cash Credit 120.0 CRISIL B/Stable Rupee Term Loan 60.0 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by VSMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VSMPL is yet to provide adequate information to enable CRISIL to assess VSMPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' VSMPL was incorporated in 2011 and is promoted by the Gujarat based Agarwal group. The Agarwal group is into manufacturing of various steel products since 1972. VSMPL is engaged in manufacturing mild steel (MS) billets/ingots and rounds and has its manufacturing facility at Ahmedabad (Gujarat) having a capacity of 30,000 tonnes per annum. The directors of VSMPL are Mr. Vivek Agarwal and his uncle, Mr. Anil Agarwal. The company reported, on a provisional basis, a net profit of INR 2.7 million on net revenues of INR 686 million in 2013-14. VICOR STAINLESS: CRISIL Suspends B+ Rating on INR70MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Vicor Stainless Private Limited (VSPL; formerly known as; Anjani Re-Rolling Mills Private Limited; part of the Agarwal group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable Term Loan 21.4 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by VSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VSPL is yet to provide adequate information to enable CRISIL to assess VSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' For arriving at the ratings, CRISIL has combined the business and financial risk profiles of VSPL, Vivek Steelco Private Limited (VSPL), Shubhlaxmi Castings Private Limited (SCPL), Arjun Alloys (AA), and VS Multimetal Pvt Ltd (VSMPL). This is because all these entities, together referred to as the Agarwal group, have the same promoters and management and significant intra-group transactions. VSPL manufactures various mild steel, alloy steel, and stainless steel products. Its rolling mill unit is at Changodar (Gujarat). The company is part of the Agarwal group, which has been manufacturing various steel products since 1972. Mr. Suresh B Agarwal is the chairman of the group. The other entities in the Agarwal group-VSPL, SCPL, AA, and VSMPL are also engaged in similar businesses. While, VSPL and VSMPL have rolling mills, SCPL and AA have induction furnace units. ========= J A P A N ========= TOSHIBA CORP: Three Former Heads Likely to Escape Charges --------------------------------------------------------- The Japan Times reports that the Tokyo District Public Prosecutors Office's special investigation unit believes it will be difficult to charge three former presidents of Toshiba Corp. over the firm's high-profile accounting scandal, sources said on July 8. The unit informed the Securities and Exchange Surveillance Commission of its view, according to the sources, the report relays. The Japan Times relates that the SESC is expected to decide whether to file criminal complaints against the three -- Atsutoshi Nishida, Norio Sasaki and Hisao Tanaka -- after holding talks with the prosecutors office. The report notes that according to a third-party investigation panel set up by Toshiba, the company padded earnings at its personal computer division through a practice whereby it sold PC components to contract manufacturers and then bought finished products from them. Believing they could possibly be held criminally responsible for the wrongdoing at the PC division, the SESC questioned the former presidents on a voluntary basis, according to the report. But the special unit of the prosecutors office found it difficult to bring charges because transactions involving the PC components actually occurred and other companies employ similar practices, the sources said, relates The Japan Times. About Toshiba 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 March 28, 2016, Moody's Japan K.K. has downgraded Toshiba Corporation's corporate family rating and senior unsecured debt rating to B3 from B2, and its subordinated debt rating to Caa3 from Caa2. The rating outlook is negative. At the same time, Moody's has affirmed Toshiba's commercial paper rating of Not Prime. This rating action concludes the review for downgrade initiated on Dec. 22, 2015. S&P Global Ratings on May 13, 2016, lowered its long-term corporate credit and senior unsecured debt ratings on Japan-based diversified electronics company Toshiba Corp. by one notch to 'B' and 'BB-', respectively, and has removed the ratings from CreditWatch. The outlook on the long-term corporate credit rating is negative. S&P placed its long-term ratings on Toshiba on CreditWatch with negative implications in December 2015 and maintained the CreditWatch on the long-term ratings when S&P lowered them in February 2016. S&P has affirmed its 'B' 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. ==================== S O U T H K O R E A ==================== HYUNDAI MERCHANT: Pins Hope On Credit Rating Rebound ---------------------------------------------------- The Korea Herald reports that Hyundai Merchant Marine said on July 8 that it will visit major credit rating agencies to explain about its ongoing restructuring measures, in hopes they reevaluate the credit standing of the ailing company. According to the report, the company will visit the rating agencies Korea Investor Services, Korea Ratings and National Information and Credit Evaluation and talk about their restructuring plan process, including the asset sales, negotiations to reduce charter rates and ongoing talks to join the 2M, the international shipping alliance. The Korea Herald relates that HMM recently suffered a sharp drop in its credit rating to "D" after it initially failed to extend the maturity of debts in March. However, HMM was able to reschedule all its debt totaling KRW843 billion (US$ 726. 1 million) in May, getting out of the default status, the report says. "The credit ratings to 'default' has negatively influenced our businesses here and abroad," the report quotes an official of the company as saying. "Since the restructuring plan has been successfully implemented, we hope the market assesses the credit rating appropriately." Hyundai Merchant Marine Co., Ltd., is a Korea-based company specializing in the provision of shipping services. The Company provides its services under two main segments: container and bulk. ********* 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 ***