/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160713.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, July 13, 2016, Vol. 19, No. 137 Headlines A U S T R A L I A BURRUP FERTILISERS: Oswals Paid US$26MM Hush Money to Advisers COMPLETE BINDING: Amos Insolvency Appointed as Liquidator FAR PAVILIONS: First Creditors' Meeting Set For July 20 GUVERA AUSTRALIA: Workers Not Paid Super, Redundancy Entitlements INTERGEN CALLIDE: Placed Into Administration MARIA'S FARM: Placed Into Administration REDSTONE MINERALS: First Creditors' Meeting Set For July 19 C H I N A UTSTARCOM HOLDING: Phicomm Group Holds 31.7% of Ordinary Shares I N D I A A ONE: CRISIL Reaffirms 'B+' Rating on INR70MM Packing Loan AMALA GRANITES: CRISIL Assigns 'B' Rating to INR41MM Term Loan ANUBHA FABRICS: ICRA Withdraws B/A4 Rating on INR21.3cr Loan CINNIC FASHIONS: ICRA Suspends 'B' Rating on INR20cr Loan COTS KNITS: CRISIL Reaffirms 'B' Rating on INR49.4MM LT Loan D. H. KHANDELWAL: CRISIL Suspends B+ Rating on INR120MM Cash Loan DINESH OILS: Ind-Ra Cuts Long-Term Issuer Rating to 'IND BB-' EISHA ATHARVA: CRISIL Suspends 'B' Rating on INR150MM LT Loan ENTRACO POWER: CRISIL Suspends 'B' Rating on INR45MM Cash Loan EXQUISITE PRINT: CRISIL Assigns 'B+' Rating to INR30MM Cash Loan GOYAL MOTOCORP: ICRA Assigns 'B' Rating to INR4.0cr Cash Loan GVP INFRA: CRISIL Assigns 'D' Rating to INR500MM Term Loan GVRMP DHARWAD: CRISIL Assigns 'D' Rating to INR1.50BB Term Loan HANUMAN RICE: ICRA Reaffirms 'B' Rating on INR10cr LT Loan INDIAN BANK: Fitch Plans to Withdraw BB+ LT Issuer Default Rating INTERCONTINENTAL POLYMERS: ICRA Suspends B+ INR7.50cr Loan Rating LADO CERAMIC: CRISIL Cuts Rating on INR37.5MM Term Loan to 'B' LAKSHMI RANGA: CRISIL Cuts Rating on INR77.5MM Cash Loan to D LAKSHMI TRADERS: CRISIL Cuts Rating on INR40MM Cash Loan to 'D' LAXMI NARASIMHA: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating MAA VINDHWASINI: CRISIL Assigns B+ Rating to INR10MM LT Loan MADHAVA HYTECH: CRISIL Assigns B+ Rating to INR40MM Cash Loan MAHAVIR COTTEX: CRISIL Suspends B Rating on INR50MM Cash Loan MEGA LINK: CRISIL Assigns B+ Rating to INR39.6MM Term Loan MILROC GOOD: CRISIL Cuts Rating on INR100MM Overdraft Loan to D MURALI ADS: CRISIL Assigns B+ Rating to INR210MM Long Term Loan OCEAN PEARL: CRISIL Suspends B+ Rating on INR200MM Overdraft Loan PURVA ENTERPRISES: ICRA Suspends 'D' Rating on INR10cr Cash Loan RAJENDRA KUMAR: CRISIL Reaffirms B+ Rating on INR97.5MM Loan REVIVE CONSTRUCTION: CRISIL Assigns B- Rating to INR100MM Loan S N THAKKAR: CRISIL Suspends B- Rating on INR75MM Cash Loan SALGUTI INDUSTRIES: ICRA Cuts Rating on INR49.11cr Loan to D SANTOSH TIMBER: CRISIL Puts B+ Rating on INR50MM Overdraft Loan SESHA SAI: ICRA Reaffirms 'B' Rating on INR6.0cr Loan SEVEN SEAS: CRISIL Reaffirms 'B+' Rating on INR2.18BB Term Loan SHIVANJALI ISPAT: CRISIL Suspends 'D' Rating on INR60MM Cash Loan SHREE TATYASAHEB: CRISIL Suspends 'D' Rating on INR547.7MM Loan SHREE VASAVI: CRISIL Assigns 'B' Rating to INR30MM Cash Loan SHRI RAM: CRISIL Suspends 'B' Rating on INR120MM Cash Loan SHRISTI COTSPINN: Ind-Ra Affirms 'IND BB' Long-Term Issuer Rating SILVERDALE FASHIONS: ICRA Withdraws B+ Rating on INR4.0cr Loan SMITH STRUCTURES: CRISIL Reaffirms B+ Rating on INR90MM Loan SREE GURU: CRISIL Assigns 'B' Rating to INR56.2MM Cash Loan SREE KOPPAMMAL: CRISIL Ups Rating on INR110MM Cash Loan to B+ SRIVEN BEER: ICRA Suspends B+ Rating on INR7.0cr Fund Based Loan SUN ARK: CRISIL Assigns B+ Rating to INR30MM Cash Loan SUSEE AUTO: ICRA Suspends 'D' Rating on INR15.95cr LT Loan SUSEE AUTOMOBILES: ICRA Suspends B- Rating on INR5.0cr Loan SUSEE CARS: CRISIL Suspends B+ Rating on INR40MM Cash Loan TAPI PRESTRESSED: ICRA Reaffirms 'D' Rating on INR46.68cr Loan THRIMATHY CONTRACTING: CRISIL Reaffirms B+ Rating on INR130M Loan V. S. MULTIMETAL: CRISIL Suspends B+ Rating on INR140MM Loan VAISHNAVI FOOD: ICRA Assigns C+ Rating to INR6.0cr Loan WELCOME TILES: ICRA Reaffirms 'B+' Rating on INR7.0cr Loan N E W Z E A L A N D MILSON AEROSPACE: To Start Bankruptcy Proceedings vs Director S O U T H K O R E A HYUNDAI MERCHANT: To Complete Debt-For-Equity Swap This Month SAMSUNG HEAVY: Self-Rescue Plan to be Finalized This Week - - - - - ================= A U S T R A L I A ================= BURRUP FERTILISERS: Oswals Paid US$26MM Hush Money to Advisers -------------------------------------------------------------- The Sydney Morning Herald reports that Indian business couple Pankaj and Radhika Oswal paid two advisers US$26 million (AUD34.51 million) in hush money to hide what was really going on at their Australian fertiliser business, a court has heard. SMH relates that the Oswals concealed the true state of affairs from the ANZ bank and Apache Corp, which supplied gas for the Burrup ammonia plant in Western Australia. US oil and gas company Apache alleges the Oswals in effect ran a Ponzi scheme, a fraudulent investment operation, and left Australia when they saw the game was up, the report says. According to SMH, Apache barrister Stewart Anderson, QC, said through the deception, Mr Oswal obtained the finance to build the plant, the gas to operate it and an ammonia offtake agreement to generate revenue. SMH says Mr Anderson has told the Victorian Supreme Court the Oswals concealed US$490 million in cost overruns in building the plant, skimming money off the top of the profitable Burrup Fertilisers business to pay the overruns and fund their own lavish Perth lifestyle. The report relates that Mr Anderson said the Oswals' two personal financial advisers were paid US$26 million to keep quiet about the cost overruns. When the advisers asked for US$10 million in 2006, Mr Oswal said the ANZ would be suspicious if such a large amount was drawn down so early from a US$600 million line of credit to Oswal company Maruti Investments. According to the report, Mr Oswal said US$5 million was the absolute most he could do and paid that amount, before a further payment of US$21 million, the court heard. The report says the court has heard the Oswals stripped $150 million out of the Burrup fertiliser business for their own use, including the unfinished "Taj Mahal on the Swan" mansion in Perth and Mrs Oswal's vegetarian restaurant chain. "After they stripped that money out they then just fled the country," the report quotes Mr Anderson as saying. The Oswals left Australia in December 2010, a few days before the ANZ appointed receivers, the report notes. They returned in April this year and want up to $2.5 billion from the ANZ and receivers over the sale of their 65 per cent stake in Burrup Holdings. They also want damages from Apache, which has a US$400 million counter-claim against the couple arguing it could have sold its gas to other parties for a higher price, SMH notes. About Burrup Fertilisers Headquartered in Karratha in Western Australia, Burrup Fertilisers Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest ammonium producer. The company has a production capacity of 850-tonnes of liquid ammonia a year. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 20, 2010, The Australian said Burrup Fertilisers Pty Ltd was placed into receivership with debts of about AUD800 million. ANZ Bank appointed PPB Advisory as receivers to Burrup Fertilisers. ANZ also appointed the same receivers, PPB Advisory, over shares held by members of the Oswal Group in related company Burrup Holdings. The bank is alleging "evidence of financial irregularities" as well as the usual default triggers relating to debt facilities established between 2002 and 2007, The Australian said. COMPLETE BINDING: Amos Insolvency Appointed as Liquidator --------------------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Peter Andrew Amos of Amos Insolvency has been appointed liquidator of Complete Binding And Coding Pty Ltd on May 18, 2016. Dissolve.com.au relates that the trade finishing business reportedly stopped operating six weeks ago. An industry insider said the rent at the premise of Perfectly Bound in Slough Business Park was very high and contributed to the collapse of the company. Perfectly Bound purchased TLC Print Finishing in 2014. Its share of troubles also included a fire in 2015 that left its factory in Silverwater with damaged presses shutting its operation down for one month, the report notes. Complete Binding And Coding formerly traded as Perfectly Bound Pty Limited. FAR PAVILIONS: First Creditors' Meeting Set For July 20 ------------------------------------------------------- Michael Owen -- mowen@ppbadvisory.com -- and Martin Ford -- mford@ppbadvisory.com -- of PPB Advisory were appointed as administrators of Far Pavilions Interiors Pty Ltd on July 8, 2016. A first meeting of the creditors of the Company will be held at Ballroom Le Grand 1, Sofitel Brisbane Central, 249 Turbot Street, in Brisbane, Queensland, on July 20, 2016, at 9:30 a.m. GUVERA AUSTRALIA: Workers Not Paid Super, Redundancy Entitlements ----------------------------------------------------------------- The Australian Financial Review reports that former Guvera employees have accused the company of not paying their compulsory employer superannuation contributions for as long as two years. The allegation arose as the first round of creditors meetings were held for two of the embattled music streaming group's local subsidiaries on July 7, and comes as the group is scrambling to pull together an emergency AUD10 million capital raising. Guv Services and Guvera Australia entered voluntary administration last month owing a total of at least AUD15 million to creditors. AFR relates that a shadow was cast over the future of parent company Guvera Ltd after the Australian Securities Exchange took the unusual step of blocking its planned initial public offer. The float would have valued the company, which lost more than AUD80 million in the 12 months to June, at AUD1.4 billion. Guvera Australia, is listed as owing roughly AUD13 million, mostly to music labels and music rights licensing organisations. The other subsidiary, Guvera Services, which was the domestic payroll company, has declared it owes roughly AUD2 million. The biggest single creditor listed is the Australian Taxation Office, owed more than AUD1 million, the report notes. After the ATO the biggest source of creditors is roughly 80 staff members owed about AUD467,000. It is likely the real figure owed to former employees could be considerably higher once superannuation and redundancy entitlements are included, according to AFR. The report says Deloitte restructuring partner Neil Cussen, who is the joint administrator, told the meeting the total value of outstanding super liabilities was unclear. A second meeting of creditors is scheduled for August 1. Several former Guvera staffers told The Australian Financial Review that it was only after the company entered administration that they realised their super contributions were missing. "The entire time I worked there I received payslips that recorded my super was being deducted. But it turns out none of it was ever actually paid into my super fund," the report quotes one former employee who asked not to be named as saying. "Some of the other guys are now finding out that their super hasn't been paid for more than two years." AFR says Guvera co-founder and chief executive Darren Herft, who did not front the creditors meeting, has denied the accusation that some staff have not been paid their superannuation entitlements for more than two years. "The company advises it is completely incorrect," a spokeswoman for Mr Herft said via email, AFR relays. Australian-based Guvera is an online music and entertainment streaming service. INTERGEN CALLIDE: Placed Into Administration -------------------------------------------- Giles Parkinson at Reneweconomy reports that the part owner of a relatively new Queensland coal generator has been put into administration after being unable to refinance its debt facilities. InterGen Callide, an offshoot of the major US generation company InterGen that owns a half share of the 810MW Callide C generators in central Queensland, has been placed into the hands of receivers Ferrier Hodgson, Reneweconomy says. According to Reneweconomy, the joint venture partner in the coal plant, the Queensland government owned CS Energy, says it is unaffected by the move and insists that the plant will continue to operate as normal, with no job losses. Callide C is one of the biggest single generators in the state and forms part of the 1.5GW callide complex. Intergen, which also owns the Milmerran power station, boasts on its web site that the coal plants are two of the most modern and efficient in the country. "Our two facilities are the continent's most advanced supercritical facilities," the company says on its web site, Reneweconomy relays. The Callide C coal plant, a "supercritical" coal generator deemed more efficient than most of Australia's coal generators, was opened in 2001. It was the first supercritical plant to be operated in Australia. However, CS Energy pointed to issues with its Callide venture in last year's annual report, pointing to "several legacy commercial issues relating to fuel supply to the Callide Power Station, an onerous contract with Gladstone Power Station and high debt levels and associated interest expenses," notes the report. It said that the Callide Power Station coal supply agreements continued to place downward pressure on earnings, and planned and unplanned outages at the Callide power station affected output. Reneweconomy relates that the issues appear to with the supplier, Anglo American, and CS Energy said it had taken action in the Supreme Court in 2014/15 to "enforce and defend the coal supply agreements." One of the main mines supplying Callide C was reportedly unprofitable and was sold by Anglo American earlier this year. According to Reneweconomy, CS energy later released a statement that said IG Callide had been placed into the hands of administrators PPB Advisory on June 14, and then placed into receivership on the same day. Ferrier Hodgson now act as the receivers and managers of InterGen's interest in Callide C Power Station. MARIA'S FARM: Placed Into Administration ---------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Maria's Farm Veggies has been placed into administration. Rahul Goyal and David Winterbottom of KordaMentha have been appointed administrators of the company on June 28, 2016, the report says. According to the report, Maria's Farm Veggies was reportedly building a 16-hectare glasshouse with a capacity of 15,000 tonnes of vegetables per year. However, the Hunter region was hit by floods in January damaging big portions of the building project, forcing the move to administration. REDSTONE MINERALS: First Creditors' Meeting Set For July 19 ----------------------------------------------------------- Simon Roger Coad of Ticcidew Insolvency was appointed as administrator of Redstone Minerals Pty Ltd on July 7, 2016. A first meeting of the creditors of the Company will be held at Level 2, 55 Carrington Street, in Nedlands, on July 19, 2016, at 10:30 a.m. ========= C H I N A ========= UTSTARCOM HOLDING: Phicomm Group Holds 31.7% of Ordinary Shares --------------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Gu Guoping, Shanghai Phicomm Communication Co., Ltd., Phicomm Technology (Hong Kong) Co., Limited and The Smart Soho International Limited disclosed that as of June 30, 2016, they beneficially own 11,739,932 ordinary shares, Par Value US$0.00375 per share, of UTStarcom Holdings Corp. representing 31.7 percent of the shares outstanding. On June 30, 2016, Acquirer, Phicomm HK and the Sellers entered into a further amendment to the Purchase Agreement. Pursuant to the Fourth Amendment, the parties to the Purchase Agreement agreed that the closing under the Purchase Agreement will take place as soon as practicable as will be agreed among the parties to the Purchase Agreement, but in no event later than Aug. 31, 2016. In consideration of this additional extension of the closing under the Purchase Agreement and certain waivers by the Sellers set forth in the Fourth Amendment, Acquirer agreed to release to the Shah Sellers the US$2,000,000 escrow fund that was established pursuant to the Third Amendment to the Purchase Agreement, together with any interest earned thereon, to pay to the Shah Sellers an additional US$1,000,000, and to deposit US$1,000,000 into an escrow account. The additional US$1,000,000 payment and additional US$1,000,000 escrow deposit are required to be made by July 31, 2016. Upon closing, the escrowed funds, together with any interest thereon, will be applied against the balance of the purchase price for the Ordinary Shares. If the closing does not occur by the New Termination Date and the Purchase Agreement is terminated due to the Sellers' failure to deliver the remaining 6,739,932 Ordinary Shares to Acquirer, the escrow deposit will be released to the Acquirer and Sellers will be required to pay Acquirer a termination fee of US$1,000,000. If the closing does not occur by the New Termination Date and the Purchase Agreement is terminated due to Acquirer's failure to make any of the payments required by the Fourth Amendment, the escrow deposit will be released to the Shah Sellers as a termination fee, and the Phicomm Group will be obligated to procure Mr. GU Guoping's resignation from the Issuer's board of directors. The Fourth Amendment also provides that the Sellers and persons acting on their behalf may initiate or encourage the sale of the remaining 6,739,932 Ordinary Shares to one or more potential purchasers other than Acquirer, participate in discussions or negotiations regarding such sales, furnish information and take other action to facilitate inquiries or proposals that could reasonably be expected to lead to such potential sales and, in each Seller's sole discretion, sell and transfer such Seller's portion of the remaining 6,739,932 Ordinary Shares to a purchaser or purchaser other than the Acquirer. However, no Seller may enter into or conclude a Third Party Deal prior to the New Termination Date. The Fourth Amendment continues the standstill provisions entered into in connection with the Third Amendment until the earlier of the closing under, and termination of, the Purchase Agreement, and the Shah Sellers also agreed to extend the duration of their consent to Phicomm's and Acquirer's share pledges to the Fund until the closing date under the Purchase Agreement. A full-text copy of the regulatory filing is available at: https://is.gd/KqEh81 About UTStarcom, Inc. UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company's headquarters are currently in Alameda, California, with its research and design operations primarily in China. UTStarcom reported a net loss of $20.7 million on $117 million of net sales for the year ended Dec. 31, 2015, compared to a net loss of $30.3 million on $129 million of net sales for the year ended Dec. 31, 2014. ========= I N D I A ========= A ONE: CRISIL Reaffirms 'B+' Rating on INR70MM Packing Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of A One Duty Free Private Limited (AODPL) continue to reflect the company's nascent and modest scale of operations, and its subdued financial risk profile because of small networth and weak debt protection metrics. These weaknesses are partially offset by the extensive industry experience of its promoters and its exclusive tie-ups with its key principals. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 170 CRISIL A4 (Reaffirmed) Export Packing Credit 70 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that AODPL 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 reports higher-than-expected revenues and profitability coupled with better working capital management, resulting in a substantial increase in its cash accruals, and hence, an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the revenues and profitability are lower-than-expected, or if there is stretch in working capital cycle, or if it undertakes large debt-funded capital expenditure, leading to weakening of its financial risk profile. AODPL, incorporated in 2010, distributes confectionary products at duty free outlets in international airports in India. Promoted by Mr. Bommidala Rama Krishna and his family, the company operates through a special economic zone in Visakhapatnam, Andhra Pradesh. AMALA GRANITES: CRISIL Assigns 'B' Rating to INR41MM Term Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' ratings to the long term bank facilities of Amala Granites Products (AGP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 41 CRISIL B/Stable Cash Credit 10 CRISIL B/Stable Proposed Long Term Bank Loan Facility 9 CRISIL B/Stable The ratings reflect AGP's weak financial risk profile marked by modest net worth and leveraged capital structure coupled with volatility in operating margins. These weaknesses are partially offset by AGP's promoter's long standing experience in stone crushing industry. Outlook: Stable CRISIL believes that RFE will continue to benefit from promoters long standing industry experience. The outlook may be revised to 'Positive' in case of sustainable increase in the firm's scale of operations, and profitability or improvement in the capital structure on account of infusion of capital. Conversely, the outlook may be revised to 'Negative' if the company undertakes a large, debt-funded capital expenditure programme or in case of significant withdrawal of the capital, leading to deterioration in its capital structure. Set up in 2006, Amala Granite Products (AGP) is engaged in stone crushing activities and has its own quarry spread across area of 12 acres in Thrissur, Kerela. The firm is a sole proprietorship concern of Mr. V. J. Chaco. Firm has stone crushing capacity of 1000 tonnes per day. ANUBHA FABRICS: ICRA Withdraws B/A4 Rating on INR21.3cr Loan ------------------------------------------------------------ ICRA has withdrawn the ratings of [ICRA]B/[ICRA]A4 assigned to the INR21.30 crore bank limits of Anubha Fabrics Private Limited, which were under notice of withdrawal. The ratings are withdrawn as the period of notice of withdrawal is completed. CINNIC FASHIONS: ICRA Suspends 'B' Rating on INR20cr Loan --------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to the INR20.00 crore fund based limits of Cinnic Fashions India Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Incorporated in 2008, Cinnic Fashion India Private Limited (CFIPL) is engaged in manufacturing of ethnic wear garments for men. Since April 1, 2013 the operations of the proprietorship firm (Richa Enterprises or RE promoted by Mr. Mehta) have been wound down and business is carried out through CFIPL exclusively. The product portfolio of the firm consists of wedding suits, kurtas, sherwani and Indo-Western clothing articles. COTS KNITS: CRISIL Reaffirms 'B' Rating on INR49.4MM LT Loan ------------------------------------------------------------ CRISIL's ratings on the bank loan facilities of The Cots Knits (TCK) continue to reflect the firm's small scale of operations in the highly fragmented readymade garments industry, its large working capital requirement, and modest financial risk profile. These weaknesses are partially offset by the extensive industry experience of the firm's promoter, and its longstanding customer relationships. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 21.5 CRISIL B/Stable (Reaffirmed) Foreign Bill Discounting 5.0 CRISIL B/Stable (Reaffirmed) Packing Credit 30.0 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 49.4 CRISIL B/Stable (Reaffirmed) For arriving at the ratings, CRISIL has knocked off receivables of INR41.5 million from Lilliput Kidswear Ltd from total receivables, and a similar amount from the net worth. Outlook: Stable CRISIL believes TCK will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if there is a significant growth in its revenue and profitability, and improvement in its working capital management, while capital structure remains stable. The outlook may be revised to 'Negative' in case of a steep decline in revenue and profitability, or large debt-funded capital expenditure, or stretch in working capital cycle, leading to deterioration in its financial risk profile. Receipt of receivables from Lilliput Kidswear Ltd will remain a key rating sensitivity factor. Update TCK, on a provisional basis, had profit after tax (PAT) of INR4.5 million on revenue of INR225.9 million for fiscal 2016, against PAT of INR4.0 million on revenue of INR223.0 million for fiscal 2015. Operating profitability was 6.56% against 6.72%. Its large working capital requirement is reflected in gross current assets of 192 days as on March 31, 2016, primarily on account of inventory of 165 days and receivables of 33 days. The firm has adequate liquidity because of steady cash accrual, nil term debt, and support from its promoter. However, its bank limit utilisation was high, averaging 87% over the 12 months through April 2016. TCK, established in 2008 and based in Tiruppur, Tamil Nadu, manufactures readymade garments. The firm is promoted by Mr. T Sharan Chinnu. D. H. KHANDELWAL: CRISIL Suspends B+ Rating on INR120MM Cash Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of D. H. Khandelwal Commercial Private Limited (DH Khandelwal). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 73.5 CRISIL B+/Stable Term Loan 6.5 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by DH Khandelwal with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DH Khandelwal is yet to provide adequate information to enable CRISIL to assess DH Khandelwal'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 2011, DH Khandelwal is a retailer of gold, silver, and diamond jewellery in Nagpur. The company started operations in April 2011 under the name, Khandelwal Jewellers. The showroom is managed by the promoter, Mr. Rajesh Khandelwal, his father, Mr. Dhanraj Khandelwal, and wife, Mrs. Radhika Khandelwal. DINESH OILS: Ind-Ra Cuts Long-Term Issuer Rating to 'IND BB-' ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Dinesh Oils Limited's (DOL) Long-Term Issuer Rating to 'IND BB-' from 'IND BBB-'. The Outlook is Negative. A full list of rating actions is at the end of this commentary. The downgrade reflects the deterioration in DOL's liquidity and credit profile over FY15-FY16 in terms of an increase in working capital cycle and a reduction in gross interest coverage ratio. KEY RATING DRIVERS DOL's stressed liquidity position is reflected by its near 100% utilisation of the cash credit limits during the 12 months ended March 2016 period and an increase in working capital cycle over FY15-FY16. Working capital cycle elongated to 80 days in FY16 (FY15: 93 days, FY14: 27 days) mainly on the back of higher inventory days (FY16: 170, FY15: 142, FY14: 61). The company's gross interest coverage ratio declined over FY15- FY16, because of an increase in interest cost, despite an improvement in profitability. Provisional FY16 financials indicate operating EBITDAR/gross interest expense+rent of 1.2x (FY15: 1.3x, FY14: 2.3x) and EBITDA margins of 4.9% (4.2%, 1.8%). EBITDA margins improved due to a lower procurement cost of raw material. Interest cost increased due to higher usage of the cash credit limits (FY16: INR600 million, FY15: INR600 million, FY14: INR350 million, FY13: INR50 million). Net financial leverage (adjusted net debt/ operating EBITDAR) though still high, reduced to 5.9x in FY16 because of lower use of buyer's credit (FY15: 7.3x, FY14: 7.3x). Moreover, DOL's revenue declined to INR3,818 million in FY16 (FY15: INR4,958 million, FY14: INR7,567 million) because of around 50% and 30% fall in sales volumes for refined palm olein oil (accounts for around 60% of the total sales) and for Vanaspati, respectively, over FY15-FY16. The volume decline was due to reduced demand amid falling prices. Sales price realisations also dropped around 20% over FY15-FY16 for the major products. Nearly 50% of the company's sales are under its own brand 'Gold Mohar', which has weak brand recognition. The Indian edible oil industry is highly fragmented and is exposed to regulatory risks. DOL has more than 25 years of operating experience in the edible oil industry. It also has a reasonable presence and distribution network in Uttar Pradesh. RATING SENSITIVITIES Positive: An improvement in the working capital cycle and liquidity could lead to the outlook being revised to Stable. Negative: Further deterioration in the liquidity and credit profile could lead to a negative rating action. COMPANY PROFILE Incorporated in 1986, DOL primarily manufactures refined edible oils (mainly refined palm olein oil, refined palm oil) and vanaspati. The company has a 750 tonnes/day manufacturing facility in Kanpur. The capacity for vansapati is 125 tonnes/day and for refined oil is 625 tonnes/day. DOL's ratings: -- Long-Term Issuer Rating: downgraded to 'IND BB-'/Negative from 'IND BBB-'/Stable -- INR10 million term loan (reduced from INR31.6 million): downgraded to Long-term 'IND BB-'/Negative from 'IND BBB- '/Stable -- INR600 million fund-based working capital limits: downgraded to Long-term 'IND BB-'/Negative from 'IND BBB-'/Stable and Short-term 'IND A4+' from 'IND A3' -- INR1,082 million non-fund-based working capital limits: downgraded to Long-term 'IND BB-'/Negative from 'IND BBB- '/Stable and Short-term 'IND A4+' from 'IND A3' EISHA ATHARVA: CRISIL Suspends 'B' Rating on INR150MM LT Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Eisha Atharva Construction (EAC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 150 CRISIL B/Stable The suspension of rating is on account of non-cooperation by EAC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, EAC is yet to provide adequate information to enable CRISIL to assess EAC'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' EAC was established in Pune in 2012. The firm is a joint venture between two Pune-based real estate groups, the Eisha group and the Atharva group. EAC is developing a luxury residential real estate project, Synergy, with a saleable area of 75,000 square feet in Salisbury Park, Pune; the project comprises two buildings of 11 floors each, with a total of 17 four-bedroom-hall-kitchen flats and two duplexes. The Eisha group has been active in the real estate segment in Pune for over a decade, and has developed over 1 million square feet of real estate in the city. Its promoters, Mr. Hasmukh Jain, Mr. Suvarnsingh Sohal, and Mr. Bharat Nagori, have experience of more than three decades in the sector. The Atharva group has been operating in the real estate segment in Pune for more than a decade, and is promoted by Mr. Ankush Jain. ENTRACO POWER: CRISIL Suspends 'B' Rating on INR45MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Entraco Power Systems Private Limited (EPSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 24.5 CRISIL A4 Cash Credit 45 CRISIL B/Stable Inland/Import Letter of Credit 30 CRISIL A4 Proposed Term Loan 0.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by EPSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, EPSPL is yet to provide adequate information to enable CRISIL to assess EPSPL'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 1992, EPSPL, is a Nashik based company, engaged in designing and manufacturing of control panels, switchboard and bus ducts having its manufacturing set up in Nashik. It also undertakes electrification contracts for various industrial plants. It is promoted by two brothers; Mr. Mangesh Nasikkar and Rajesh Nasikkar. EXQUISITE PRINT: CRISIL Assigns 'B+' Rating to INR30MM Cash Loan ---------------------------------------------------------------- CRISIIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank loan facilities of Exquisite Print and Pack Pvt Ltd (EPPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable Rupee Term Loan 29.4 CRISIL B+/Stable The rating reflects limited scale of operations in a highly fragmented industry, highly working capital-intensive operations and below-average financial risk profile. These weaknesses are mitigated by the extensive experience of the promoters in the packaging industry, and a diversified and established customer profile. Outlook: Stable CRISIL believes EPPPL will continue to benefit over the medium term from the extensive industry experience of its promoters and an established clientele. The outlook may be revised to 'Positive' in case of significant increase in scale of operations while profitability is maintained, leading to sustainable increase in cash accrual and improvement in working capital cycle resulting improved liquidity. The outlook may be revised to 'Negative' if liquidity deteriorates, most likely because of further deterioration in working capital requirement, lower-than- expected cash accrual, and/or any large, debt-funded capital expenditure. EPPPL, based in Kolkata and incorporated in 2011, is promoted by Mr. Anirudha Khemka and Mr. Abhinav Agarwal. The company manufactures printed corrugated and non-corrugated boxes. Commercial operations started from July 2014. GOYAL MOTOCORP: ICRA Assigns 'B' Rating to INR4.0cr Cash Loan ------------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B to the INR4.00 crore cash credit facility and INR2.50 crore term loan facility of Goyal Motocorp Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- Cash Credit 4.00 [ICRA]B assigned Fund Based Limit- Term loan 2.50 [ICRA]B assigned The assigned rating takes into account GMPL's small scale of current operations, weak financial risk profile, reflected by nominal profits and cash accruals from operations, leading to weak debt coverage indicators. Besides, the company's capital structure remained adverse as reflected by a gearing of 5.30 times as on March 31, 2016 and GMPL's exposure to the cyclical nature of the automobile industry. The rating, however, positively takes into account GMPL's status of being the sole authorised dealer of HMIL in Raigarh, and experience of the director in automobile dealership business through a group entity. Incorporated in 2013, Goyal Motocorp Private Limited (GMPL) is an authorised dealer of cars manufactured by Hyundai Motor India Limited (HMIL). The company sells vehicles and provides ancillary services that include vehicle servicing and sale of spare parts and accessories from its showroom based in Raigarh, Chhattisgarh. The company has another small showroom at Pathalgaon, which falls under Jashpur district of Chhattisgarh, offering vehicle sales as well as servicing. Recent Results During FY2016, the company reported a net profit of INR0.2 crore (provisional) on an operating income of INR27.6 crore (provisional). It had reported a net profit of INR0.1 crore on an operating income of INR21.4 crore in FY2015. GVP INFRA: CRISIL Assigns 'D' Rating to INR500MM Term Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank loan facility of GVP Infra Projects Private Limited (GIPPL). The ratings reflect instances of delay by GIPPL in servicing its term debt. The delays are primarily because of the company's weak liquidity owing to subdued power generation. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 500 CRISIL D GIPPL also has a below-average financial risk profile, marked by weak debt protection metrics. However, the company benefits from the high demand for power in Karnataka and assured offtake in the form of power purchase agreement with Mangalore Electricity Supply Company Limited. GIPPL operates a 15 megawatt hydro power project in Udupi district in Karnataka. The operations of the company are managed by the promoter, Mr. G Venkateswara Rao. For 2014-15 (refers to financial year, April 1 to March 31), GIPPL reported a net loss of INR73.9 million on total revenue of INR1.69 million. GVRMP DHARWAD: CRISIL Assigns 'D' Rating to INR1.50BB Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank loan facility of GVRMP Dharwad Ramanagar Tollway Private Limited (GDRTPL). The ratings reflect instances of delay by GDRTPL in servicing its term debt. The delays are primarily because of the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 1500 CRISIL D GDRTPL also has a below-average financial risk profile, marked by weak debt protection metrics. However, the company benefits from the extensive industry experience of its sponsors in the civil construction industry. GDRTPL is a special purpose vehicle (SPV) set up as a joint venture between GVR Infra Projects Limited (51%), RMN Infrastructures Ltd (25%) and Prathyusha Group (24%) in 2010. GDRTPL has entered into a 30 year concession agreement with Karnataka Road Development Corporation Limited to widen and maintain SH-34 from Dharwad to Ramanagar (Karnataka) for a total length of 61.4 kms on BOT-toll basis. For 2014-15 (refers to financial year, April 1 to March 31), GDRTPL reported a net loss of INR398.72 million on total revenue of INR44.23 million, against a net loss of INR145.95 million on total revenue of INR23.93 million for 2013-14. HANUMAN RICE: ICRA Reaffirms 'B' Rating on INR10cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B on the INR10.00 crore fund based bank facilities of Hanuman Rice Mills. ICRA has also reaffirmed its short term rating of [ICRA]A4 on the INR5.00 crore short term, fund based bank facilities of the firm. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 10.00 [ICRA]B; reaffirmed Short Term Fund Based Limits 5.00 [ICRA]A4; reaffirmed ICRA's ratings favourably take into account the long standing experience of HRM's promoters, with strong relationships with various customers and suppliers, coupled with proximity of the mill to a major rice growing area, which results in easy availability of paddy and stable demand outlook given that India is a major consumer (rice being an important staple of the Indian diet) and exporter of rice. However, the ratings continue to be constrained by HRM's low capacity utilization levels and declining operating profitability. The ratings are further constrained by the firm's leveraged capital structure due to the firm's large working capital requirements, which have primarily been funded by working capital borrowings. Further the firm's low profit margins coupled with high gearing have led to weak coverage indictors, as reflected in low interest coverage and weak NCA/TD3. The ratings are also constrained by the high intensity of competition in the rice milling industry and agro climatic risks, which can affect the availability of paddy in adverse weather conditions. ICRA's ratings also factors in the partnership constitution of the firm which exposes it to risks related to capital withdrawal, dissolution etc. Going forward, the firm's ability to bring about a sustained improvement in its profitability and liquidity will be the key rating sensitivities. HRM was established in 1990 as a partnership firm with Mr. Shiv Parshad, Mr. Sushil Garg, Mr.Rajesh Garg and Mr. Subhash Garg as partners in equal ratio. After the demise of Mr. Subhash Garg in 2009, the partnership firm was reconstituted and Mr. Vipin Garg was admitted as a partner with equal share in the firm. HRM carries out processing and trading of rice in the domestic market and also exports to the Middle East and Europe. HRM has two plants with an overall capacity of 10 tonnes per hour at Taraori, Karnal (Haryana). Recent Results The firm, on a provisional basis, reported a net profit of INR0.17 crore on an operating income of INR75.48 crore for FY2016 as compared to a net profit of INR0.18 crore on an operating income of INR68.37 crore for the previous year. INDIAN BANK: Fitch Plans to Withdraw BB+ LT Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings plans to withdraw the ratings on Indian Bank on or about, 8 August 2016, which is approximately 30 days from the date of this non-rating action commentary for commercial reasons. Fitch currently rates Indian Bank as follows: -- Long-Term Issuer Default Rating (IDR) at 'BB+'; Outlook Stable; -- Short-Term IDR at 'B' -- Viability Rating at 'bb+' -- Support Rating at '3' -- Support Rating floor at 'BB+' Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any reason it deems sufficient. Fitch believes that investors benefit from increased rating coverage by Fitch and is providing approximately 30 days' notice to the market of the rating withdrawal of Indian Bank . Ratings are subject to analytical review and may change up to the time Fitch withdraws the ratings. Fitch's last rating action for the above referenced entity was on 5 July 2016. The ratings were affirmed. INTERCONTINENTAL POLYMERS: ICRA Suspends B+ INR7.50cr Loan Rating ----------------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA]B+ assigned to the INR7.50 crore fund based and the short-term rating of [ICRA]A4 assigned to the INR1.50 crore non fund based bank facilities of Intercontinental Polymers Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. LADO CERAMIC: CRISIL Cuts Rating on INR37.5MM Term Loan to 'B' -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Lado Ceramic Pvt. Ltd. (LCPL) to 'CRISIL B/Stable' from 'CRISIL B+/Stable', while reaffirming its rating on the short- term facility at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 (Reaffirmed) Cash Credit 20 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Term Loan 37.5 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects deterioration in business and financial risk profiles on account of low revenue, and operating profit, leading to low cash accrual. Accrual was INR3.1 million in Fiscal 2016. Debt protection metrics were, therefore, average: interest coverage was 1.8 times. Net worth was small at INR40.0 million as on March 31, 2016. The working capital remained stretched on account of high gross current assets of 452 days, marked by high inventory of 375 days, as on March 31, 2016. The rating continues to reflect modest scale and working capital intensity in operations in the intensely competitive ceramics industry. The rating also factors in average financial risk profile, marked by small networth. These rating weaknesses are partially offset by extensive experience of the promoters, and proximity of facilities to raw material and labour sources. Outlook: Stable CRISIL believes LCPL will continue to benefit over the medium term from the extensive experience of the promoters. The outlook may be revised to 'Positive' if significant increase in scale of operations and profitability considerably strengthens cash accrual. Conversely, the outlook may be revised to 'Negative' if low revenue, profitability, or accrual, stretch in working capital cycle, or any large capital expenditure weakens key credit metrics. Incorporated in September 2014, LCPL is a Morbi-based company, manufacturing digitally printed ceramic wall tiles. Mr. Rohit Barasara and Mr. Piyush Kalariya and their family members are the promoters. The promoters have experience of a decade in marketing ceramic wall tiles through associate companies, Coral Sales Depo, Mumbai, and Gallops Marketing, Morbi. The company has a production capacity of 24,000 tonne per annum. LAKSHMI RANGA: CRISIL Cuts Rating on INR77.5MM Cash Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on bank facilities of Lakshmi Ranga Enterprises Private Limited (LREPL; part of the Lakshmi group) to 'CRISIL D' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 77.5 CRISIL D (Downgraded from 'CRISIL BB/Stable') Term Loan 22.5 CRISIL D (Downgraded from 'CRISIL BB/Stable') The rating downgrade reflects the group's overdrawn working capital facilities (for more than 30 consecutive days) and delay in repayment of the term-loan on account of weak liquidity. The ratings also reflect the working capital-intensive nature and moderate scale of operations, amidst intense competition in the trading business. These weaknesses are partially offset by extensive experience of the group's promoters in the paints and cement dealership industries. For arriving at the rating, CRISIL has combined the business and financial risk profiles of LREPL and Lakshmi Traders (LT). This is because the two entities, together referred to as the Lakshmi group, have a common management and are engaged in similar lines of business. LREPL, set up in 1984, trades in paints, hardware, plywood, and various building construction material. LT, established in 2009, trades in white cement and other building construction material. The group is managed by Mr. R. Anbalagan and his family members, and based in Thiruvannamalai (Tamil Nadu). LAKSHMI TRADERS: CRISIL Cuts Rating on INR40MM Cash Loan to 'D' --------------------------------------------------------------- CRISIL has downgraded its ratings on bank facilities of Lakshmi Traders - Chennai (LT; part of the Lakshmi group) to 'CRISIL D' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL D (Downgraded from 'CRISIL BB/Stable') Proposed Working 20 CRISIL D (Downgraded from Capital Facility 'CRISIL BB/Stable') The rating downgrade reflects the group's overdrawn working capital facilities (for more than 30 consecutive days) and delay in repayment of the term-loan on account of weak liquidity. The ratings also reflect the working capital-intensive nature and moderate scale of operations, amidst intense competition in the trading business. These weaknesses are partially offset by extensive experience of the group's promoters in the paints and cement dealership industries. For arriving at the rating, CRISIL has combined the business and financial risk profiles of LT and Lakshmi Ranga Enterprises Pvt Ltd (LREPL). This is because the two entities, together referred to as the Lakshmi group, have a common management team and are engaged in similar lines of business. LREPL, set up in 1984, trades in paints, hardware, plywood, and various building construction material. LT, established in 2009, trades in white cement and other building construction material. The group is managed by Mr. R. Anbalagan and his family members, and based in Thiruvannamalai (Tamil Nadu). LAXMI NARASIMHA: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Laxmi Narasimha Breeding Farm (LNBF), a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS The ratings reflect LNBF's small scale of operations, volatile EBITDA margins and moderate credit metrics. According to FY16 provisional financials the firm's revenue was INR132m (FY15:INR108.5 million). Its margins varied between 7.8% and 20.5% over FY12-FY16 due to volatility in the feed prices. The firm's net leverage (Ind-Ra adjusted net debt/operating EBITDAR) was 2.4x at FYE16 (FYE15: 2.2x) and EBITDA interest cover (operating EBITDA/gross interest expense) was 3.4x (2.6x). The ratings further reflect the firm's moderate liquidity profile with the average peak utilisation of its fund-based working capital facilities being around 95% during the 12 months ended May 2016. The ratings factor in the risks inherent in poultry industry (including the disease outbreaks). The ratings also factor in the partnership structure of the firm and intense industry competition. The ratings, however, are supported by the extensive experience of around three decades of the firm's partners in the poultry industry and its established relationships with the customers. RATING SENSITIVITIES Negative: A decline in the scale of operations and/or profitability, leading to deterioration in the credit metrics and/or liquidity could lead to a negative ratings action. Positive: A substantial increase in the scale of operations and/or improvement in profitability, leading to a sustained improvement in the credit metrics could lead to positive rating action. COMPANY PROFILE LNBF is a Telangana-based partnership firm involved in the poultry business. LNBF's ratings: -- Long-Term Issuer Rating: assigned 'IND B+'/Stable -- INR10 million fund-based working capital limits: assigned 'IND B+'/Stable/'IND A4' -- INR21.6 million term loan limits: assigned 'IND B+'/Stable -- Proposed INR110 million fund-based working capital limits: assigned 'Provisional IND B+'/Stable/'Provisional IND A4' MAA VINDHWASINI: CRISIL Assigns B+ Rating to INR10MM LT Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the proposed long-term bank facility of Maa Vindhwasini Mahila Prashikshan Evam Samaj Sewa Sansthan (MVMPESSS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 10 CRISIL B+/Stable The rating reflects the society's below-average financial risk profile because of small networth. The rating also factors in its modest scale and not-for-profit operations. These weaknesses are partially offset by its established relationships with government authorities, and track record of implementing social welfare development schemes. Outlook: Stable CRISIL believes MVMPESSS's credit risk profile will remain constrained by its small scale of operations and low cash accrual. The outlook may be revised to 'Positive' if there is a significant increase in its revenue and cash accrual, leading to a better financial risk profile. The outlook may be revised to 'Negative' in case of a decline in its income or cash accrual, or large debt-funded capital expenditure, leading to pressure on its financial risk profile. MVMPESSS, set up in 1993, is a not-for-profit society. It implements state and central government schemes in and around Deoria in Uttar Pradesh. MADHAVA HYTECH: CRISIL Assigns B+ Rating to INR40MM Cash Loan ------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Madhava Hytech Infrastructures India Private Limited (MHIPL), and has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the facility. CRISIL had, on February 27, 2013, suspended the ratings as MHIPL had not provided the necessary information for a rating review. The company has now shared the requisite information, enabling CRISIL to assign a rating. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL A4 Cash Credit 40 CRISIL B+/Stable The rating reflects modest scale of operations, large working capital requirement, and exposure to intense competition in civil construction industry. These weaknesses are partially offset by extensive experience of the company's promoters in the civil construction industry, and its moderate order book, providing medium-term revenue visibility. Outlook: Stable CRISIL believes MHIPL will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' in case of substantial and sustained increase in revenue and profitability, or continued improvement in working capital cycle. The outlook may be revised to 'Negative' in case of steep decline in profitability, or deterioration in capital structure because of large, debt-funded capital expenditure or stretch in working capital cycle. MHIPL undertakes civil construction work on contract basis for Railways, and State Road authorities. The company is promoted by Mr. Pradeep Kilaru and is based out of Hyderabad. MAHAVIR COTTEX: CRISIL Suspends B Rating on INR50MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Mahavir Cottex (MC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable Proposed Long Term Bank Loan Facility 34.8 CRISIL B/Stable Term Loan 15.2 CRISIL B/Stable The suspension of rating is on account of non-cooperation by MC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MC is yet to provide adequate information to enable CRISIL to assess MC'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' MC was established in 2014 as a partnership firm in Amreli (Gujarat). The firm has recently set up its project to carry out cotton ginning and pressing; operations commenced in October 2014. MEGA LINK: CRISIL Assigns B+ Rating to INR39.6MM Term Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank loan facilities of Mega Link Chains India Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 39.6 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 0.4 CRISIL B+/Stable Bank Guarantee 2.0 CRISIL A4 Cash Credit 28.0 CRISIL B+/Stable The ratings reflect MLCIPL's exposure to risks related to fragmented nature of the steel industry and large working capital requirement. The rating also factors in the company's average financial risk profile marked by small networth, moderate gearing and average debt protection metrics These rating are partially offset by extensive experience of the promoters in steel manufacturing business. Outlook: Stable CRISIL believes that MLCIPL will continue to benefit from the extensive industry experience of its promoters, over the medium term. The outlook may be revised to 'Positive' in case MLCIPL's financial risk profile improves significantly, most likely because better-than-expected revenues and profitability or improvement in its working capital requirement. Conversely, the outlook may be revised to 'Negative' if the company's profitability or revenues decline, resulting in lower-than- expected cash accruals, or the company undertakes any large-than expected debt funded capital expenditure. Established in 1996 as partnership firm, MLCIPL was incorporated during 2008 and undertakes manufacturing, trading and exporting of industrial link chains and wire ropes like engineering wire ropes, fishing wire ropes, galvanized fishing wire ropes and others. MLCIPL has it manufacturing facility located at Thane (Maharashtra). The company is promoted by Mr. Janardan Pandey, who also look after the day to day operations of the company. MILROC GOOD: CRISIL Cuts Rating on INR100MM Overdraft Loan to D --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Milroc Good Earth Property And Developers LLP (MGE) to 'CRISIL D' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 100 CRISIL D (Downgraded from 'CRISIL BB/Stable') Term Loan 50 CRISIL D (Downgraded from 'CRISIL BB/Stable') The downgrade reflects delays by MGE in servicing its term debt. The delays have been caused by weak liquidity due to slowdown in the real estate industry resulting in stretched receivables. MGE also faces geographical concentration risk and demand risk for its hotel project. However, the firm benefits from the extensive experience of its promoters in the real estate business. MGE develops residential and commercial properties in Goa. It is promoted and managed by Mr. Allaparthi Durgaprasad and Mr. Kantipudi Kulasekhar, who have developed more than 15 residential and commercial properties in Goa over the past 20 years. MURALI ADS: CRISIL Assigns B+ Rating to INR210MM Long Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Murali Ads and Publicities (MAP; a part of the Murali group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 25 CRISIL B+/Stable Cash Credit 15 CRISIL B+/Stable Long Term Loan 210 CRISIL B+/Stable The rating reflects the Murali group's modest scale of operations, large working capital requirement, and weak financial risk profile because of small networth and high gearing. These weaknesses are partially offset by the extensive experience of its proprietor in the advertising industry, and its healthy operating profitability. For arriving at the rating, CRISIL has combined the business and financial risk profiles of MAP and Murali Residency (MR). This is because both the entities, together referred to as the Murali group, are under the same management team and have common bankers. Outlook: Stable CRISIL believes the Murali group will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' if its financial risk profile improves, because of higher-than-expected cash accrual, lower working capital requirement, or equity infusion. The outlook may be revised to 'Negative' if its financial risk profile or liquidity weakens due to low profitability, or stretch in working capital cycle, or sizeable capital expenditure or capital withdrawal. MAP and MR are proprietorship firms of Mr. V. Krishnaswamy. MAP, established in 1989, provides out-of-home (OOH) advertising solutions at railway stations, for which, it is a sole licensee in Tamil Nadu and Kerala. MR, established in 1913, manages a hotel in Kumbakonam, Tamil Nadu. OCEAN PEARL: CRISIL Suspends B+ Rating on INR200MM Overdraft Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Ocean Pearl Hotels Private Limited (OPHPL; a part of the Swagath group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 200 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by OPHPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, OPHPL is yet to provide adequate information to enable CRISIL to assess OPHPL'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 its ratings, CRISIL has consolidated the business and financial risk profiles of OPHPL with its group entity Swagath. This is because the two entities, together referred to as the Swagath group, have significant financial linkages and a common management. Swagath, set up in 2001 by Mr. Jayaram Banan, runs nine multi- cuisine restaurants under the Swagath brand in Delhi/National Capital Region. OPHPL, incorporated in 2011 by Mr. Jayaram Banan, runs a four-star hotel in Mangalore (Karnataka) and a banquet facility in Maharauli in Delhi. PURVA ENTERPRISES: ICRA Suspends 'D' Rating on INR10cr Cash Loan ---------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]D assigned to the INR10 crore cash credit facility of Purva Enterprises (PE). The suspension follows lack of co-operation from the company. RAJENDRA KUMAR: CRISIL Reaffirms B+ Rating on INR97.5MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facility of M/s. Rajendra Kumar Sureka & Others (RKS) continues to reflect exposure to risks associated with development of its proposed real estate project, and vulnerability to risks and cyclicality inherent in the Indian real estate industry. These rating weaknesses are partially offset by the favourable location of, and low funding risk associated with, the upcoming real estate project. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 97.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes RKS will continue to benefit over the medium term from the favourable location of its ongoing project. The outlook may be revised to 'Positive' if the project is implemented as per schedule and receives better-than-expected response in terms of occupancy or lease rental rates, and thereby generates substantial rental income. Conversely, the outlook may be revised to 'Negative' in case of cost and/or time overrun in project execution, or limited response for the project, resulting in low occupancy rates or rental income, and hence, in deterioration in liquidity and financial flexibility. RKS, an association of persons established by Guwahati-based Mr. Rajendra Kumar Sureka, is currently developing a commercial mall- cum-office space on G S Road in Guwahati. The firm's other associates are Mr. Sureka's brother, Mr. Krishna Kumar Sureka, and mother, Mrs. Patiya Devi Sureka. It plans to earn rental income by leasing out the commercial and office space. REVIVE CONSTRUCTION: CRISIL Assigns B- Rating to INR100MM Loan -------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Revive Construction Company India Private Limited (RCCIPL) and has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the facilities. CRISIL had suspended the ratings on December 17, 2015, as RCCIPL had not provided necessary information required for a rating review. RCCIPL has now shared the requisite information, enabling CRISIL to assign ratings to its bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL A4 (Assigned; Suspension Revoked) Overdraft Facility 100 CRISIL B-/Stable (Assigned; Suspension Revoked) The ratings reflect modest scale of operations in the civil construction industry, stretched receivables, and average financial risk profile marked by modest networth and high gearing. These weaknesses are partially offset by the extensive experience of the promoter in the industry. Outlook: Stable CRISIL believes RCCIPL will benefit over the medium term from the extensive experience of the promoter. The outlook may be revised to 'Positive' if increase in cash accrual, dip in working capital requirement, or any equity infusion strengthens financial risk profile. Conversely, the outlook may be revised to 'Negative' if financial risk profile deteriorates owing to lower revenue and margins, or stretch in working capital requirement. Set up in 2009, by Mr. Abdul Rahuman Nasarudeen and his family, RCCIPL undertakes civil construction works, related to laying and repair of roads. It is head quartered in Thiruvananthapuram, Kerala. S N THAKKAR: CRISIL Suspends B- Rating on INR75MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of S N Thakkar Construction Private Limited (SN Thakkar). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 300 CRISIL A4 Bill Purchase- Discounting Facility 140 CRISIL A4 Cash Credit 75 CRISIL B-/Stable Proposed Long Term Bank Loan Facility 5 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by SN Thakkar with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SN Thakkar is yet to provide adequate information to enable CRISIL to assess SN Thakkar'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' SN Thakkar, engaged in civil and infrastructure construction, started operations in Mumbai in 1984, as a partnership firm, SN Thakkar Constructions; the firm was reconstituted as a private limited company in 1992. SN Thakkar is closely held by Mr. Praveen Thakkar, Mr. Pradeep Thakkar, and their family members. SALGUTI INDUSTRIES: ICRA Cuts Rating on INR49.11cr Loan to D ------------------------------------------------------------ ICRA has revised the long-term rating assigned to the INR49.11 crore1 fund based limits and INR0.15 crore non-fund based limits of Salguti Industries Limited from [ICRA]B- to [ICRA]D. ICRA has also revised the short term rating assigned to INR8.14 crore non- fund based limits of SIL from [ICRA]A4 to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit 49.11 [ICRA]D revised from [ICRA]B- Non-fund based Limits LT scale 0.15 [ICRA]D revised from [ICRA]B- Non-fund based Limits ST scale 8.14 [ICRA]D revised from [ICRA]A4 The revision in rating primarily takes in to account delay in debt repayment obligations by the company owing to stretched liquidity position following delays in receivables from major clients of the company. The ratings are also constrained by weak financial profile on account of high gearing of 4.72 times as at March, 31, 2016, weak coverage indicators as indicated by interest coverage of 1.38 times, NCA/Debt of 6% and Debt/OPBDITA of 5.27 times during FY 2016; SIL's exposure to significant customer concentration risk and high competitive intensity in the poly woven sacks & spinning industry also exerts pressure on the profitability. The ratings however take comfort from the long track record of operations & promoters' experience in the packaging industry; and established relationship with major customers such as Coromandel International Limited & Venkat Polymers Private Limited. Going forward, timely servicing of debt obligations will be the key monitorable. Further, the ability of the company to improve its profitability while managing its working capital requirements would remain key rating sensitivities from credit perspective Salguti Industries Limited (SIL) was incorporated in 1984 and is engaged in the manufacturing of poly woven sacks for packaging of fertilizers, cement, food grains etc. In year 2005, SIL diversified into textiles segments and is engaged in the manufacturing of cotton grey fabric for garments, bed linen and furnishings. The manufacturing facilities for packaging division are located at Bollaram, Medak District and Rajapur, Mahaboobnagar District of Telangana and for textile division at Jadcherla, Telangana. Currently, the installed capacity of poly woven sacks is 10400 MT/annum and of textile unit is at 2600 MT/annum. Recent Results The company reported a net loss of INR0.40 crore on an operating income of INR116.46 in FY2016 as against a net profit of INR0.30 crore on an operating income of INR124.95 crore in FY2015. SANTOSH TIMBER: CRISIL Puts B+ Rating on INR50MM Overdraft Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank loan facilities of Santosh Timber Trading Company Limited (STTCL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 200 CRISIL A4 Overdraft Facility 50 CRISIL B+/Stable The ratings reflect the company's small scale of operations in the highly fragmented timber trading industry, and its below- average financial risk profile because of high total outside liabilities to adjusted networth ratio and weak debt protection metrics. The ratings also factor in large working capital requirement, and susceptibility of operating margin to volatility in raw material prices and foreign exchange rates. These weaknesses are partially offset by extensive experience of its promoter in the timber trading business. Outlook: Stable CRISIL believes that STTCL business risk profile will continue to benefit from its promoters long standing industry experience. The outlook may be revised to 'Positive' if the company achieves higher than expected growth in revenue and profitability or if there is an improvement in working capital management leading to better business and financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is a significant decline in its top line or margins due to high competition, leading to deterioration in its business risk profile or if there is more than expected increase in the company's working capital requirements or if it undertakes any significant debt funded capex leading to deterioration in its financial risk profile. STTCL incorporated in 1982, as a proprietorship firm by Delhi based Aggarwal family prior to that in 1996 converted into closely held Limited company. STTCL engaged in imports and trading of medium density fire board (MDF), Acrylic Solid Surface (ASS), Doorskin and timber. The company has a sawing unit in Gandhidham, Gujrat and having head office in New Delhi. On provisional basis, profit after tax (PAT) was INR1.6 million on net sales of INR297.3 million in 2015-16 (refers to financial year, April 1 to March 31), against a PAT of INR1.1 million on net sales of INR293.8 million in 2014-15. SESHA SAI: ICRA Reaffirms 'B' Rating on INR6.0cr Loan ----------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B to INR6.00 crore fund based limits and INR6.00 crore unallocated limits of Sesha Sai Cotton Company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 6.00 [ICRA]B reaffirmed Unallocated Limits 6.00 [ICRA]B reaffirmed The rating are constrained by the firm's small scale of operations and the weak financial profile characterized by low profitability on account of limited value additive nature of the business, high gearing levels (14.84 times as on 31st March 2015) and stretched coverage indicators. The ratings are further constrained by highly fragmented industry structure resulting in low profitability levels and the susceptibility of profitability and revenues to agro-climatic risks which can impact the availability of the raw materials in adverse weather conditions and high working capital requirements of the firm primarily on account of stretched receivables from its customers resulting in high average working capital utilization of 90% during the past 12 months. ICRA also notes the customer concentration risks as the top 5 customers accounted for more than 60% of the total revenue during FY2015 and the risks associated with sole proprietorship nature of the firm. The rating, however, is supported by the established track record of the proprietor with about two decades of experience in cotton ginning industry and proximity of the manufacturing unit to cotton growing areas thereby aiding in easy availability of raw cotton and lower transportation costs. Going forward, ability of the firm to increase its scale of operations while improving profitability and effectively manage working capital requirements would remain key rating sensitivities. SSCC was established in the year 2001 as a proprietorship concern by Mr. Jampu Anjaneyulu. The entity is engaged in ginning and pressing of cotton and trading of cotton lint and cotton seed. The firm has an installed capacity of12 ginning machines located in Guntur, Andhra Pradesh on lease, while pressing of cotton bales is outsourced. Recent results SSCC has reported an operating income of INR29.89 crore and net profit of INR0.18 crore in FY2015 as against an operating income of INR30.48 crore and net profit of INR0.17 crore in FY2014. SEVEN SEAS: CRISIL Reaffirms 'B+' Rating on INR2.18BB Term Loan --------------------------------------------------------------- CRISIL's rating on long-term bank facilities of Seven Seas Hospitality Pvt Ltd (SSHPL) continues to reflect exposure to demand-related risks, associated with the new five-star hotel, and the weak financial risk profile, as debt contracted to fund the project led to a highly leveraged capital structure. These weaknesses are partially offset by extensive industry experience of promoters and the well-established brand image in the banqueting and catering segment. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 40 CRISIL B+/Stable (Reaffirmed) Term Loan 2180 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes banquet halls that are currently operational will continue to generate healthy revenue and maintain healthy profitability. CRISIL also believes that the company will remain exposed to demand-related risks arising from the new project at Rohini. The outlook may be revised to 'Positive' if healthy accrual strengthens the capital structure. The outlook may be revised to 'Negative' if delays in project completion or larger- than-expected debt, significantly weakens the financial risk profile. SSHPL was incorporated in 2006 and is promoted by the Dang group. The hotel offers banqueting and catering services at three banquet halls at Lawrence Road, Delhi, with a combined seating capacity for 1,500 people. The company has set up a five-star hotel-cum-restaurant-cum-banquet-hall at Rohini, Delhi, at an estimated cost of INR3.36 billion which commenced operations in March 2016. SHIVANJALI ISPAT: CRISIL Suspends 'D' Rating on INR60MM Cash Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Shivanjali Ispat Private Limited (SIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Cash Credit 60 CRISIL D Proposed Cash Credit Limit 40 CRISIL D Proposed Long Term Bank Loan Facility 14.6 CRISIL D Term Loan 20.9 CRISIL D The suspension of ratings is on account of non-cooperation by SIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SIPL is yet to provide adequate information to enable CRISIL to assess SIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid 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' SIPL was promoted in 2010 by the Agarwal, Panjwani, and Upaipuria families of Kolhapur (Maharashtra). In 2012-13 (refers to financial year, April 1 to March 31), the Agarwal family took over the company. SIPL manufactures mild-steel ingots at its plant in Kolhapur. SHREE TATYASAHEB: CRISIL Suspends 'D' Rating on INR547.7MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Shree Tatyasaheb Kore Warana Sahakari Navshakti Nirman Sanstha Limited (Warana Navshakti). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 547.7 CRISIL D Term Loan 452.3 CRISIL D The suspension of rating is on account of non-cooperation by Warana Navshakti with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Warana Navshakti is yet to provide adequate information to enable CRISIL to assess Warana Navshakti'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' Warana Navshakti is a co-operative society engaged in hydroelectric power generation. The society, registered in 2005, is part of the Warana group of societies. It has set up four power plants at Chitri, Kumbhi, Kadavi and Patgaon in Kolhapur district of Maharashtra. Mr. Vinay Kore is the founder chairman of Warana Navshakti. The day-to-day operations of the society are managed by Mr. SRPatil, Chief Executive Officer with support from other professionals. SHREE VASAVI: CRISIL Assigns 'B' Rating to INR30MM Cash Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities Shree Vasavi Exports (SVE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Key Cash Credit 30 CRISIL B/Stable Foreign Bill Purchase 10 CRISIL B/Stable Cash Credit 30 CRISIL B/Stable Export Packing Credit 30 CRISIL A4 The ratings reflect its moderate scale of operations in intensely competitive cashew trading industry. The ratings also reflect its weak financial risk profile marked by small networth, high total outside liability to tangible networth ratio and modest debt protection metrics. These rating weaknesses are partially offset by the extensive experience of the promoters in cashew trading industry and established relationship with its customers. Outlook: Stable CRISIL believes that SVE will continue to benefit from its promoters' extensive industry experience over the medium term. The outlook may be revised to 'Positive' in case of significant improvement in scale of operations and profitability while improving its financial risk profile. Conversely, the outlook may be revised to 'Negative', if the firm's financial risk profile deteriorates owing to lower than expected revenues and profitability, or due to stretch in working capital cycle or large debt funded capex. Set up in 1997 as a proprietorship firm, SVE is engaged in trading of raw cashew nuts and Palmyra fibre. The firm is based out of Kakinada in Andhra Pradesh and promoted by Mr.T Vijay Kumar. SHRI RAM: CRISIL Suspends 'B' Rating on INR120MM Cash Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Shri Ram Switchgears Private Limited (SRSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 216 CRISIL A4 Cash Credit 120 CRISIL B/Stable Letter of Credit 24 CRISIL A4 Proposed Short Term Bank Loan Facility 8 CRISIL A4 Term Loan 32 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SRSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SRSPL is yet to provide adequate information to enable CRISIL to assess SRSPL'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' SRSPL, promoted by the Jhalani family of Ratlam (Madhya Pradesh) in 1985, manufactures electrical items such as distribution transformers, switchgear, meter boxes, feeder pillars, distribution boxes, and junction boxes used in the distribution of power and also undertake erection, installation, and operation and maintenance of these items for its customers. Its manufacturing units are located in Ratlam. SHRISTI COTSPINN: Ind-Ra Affirms 'IND BB' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Shristi Cotspinn Private Limited's (Shristi) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS The affirmation reflects Shristi's sustained moderate credit profile despite a decline in its revenue. The company's audited FY16 financials indicate net leverage (net adjusted debt/operating EBITDAR) of 3.1x (FY15: 3.2x) and interest coverage (operating EBITDA/gross interest expense) of 3.4x (2.5x). Shristi's revenue declined 10.6% yoy in FY15 to INR686 million (FY14: INR767 million) while it reported flat revenue of INR703 million in FY16. The ratings continue to be constrained by the company's presence in the agro commodity-based manufacturing industry which is fraught with price fluctuations. Favorable cotton prices lead to a 70 basis points margin expansion to 12.3% in FY16 (FY15: 12.2 %). The ratings, however, are supported by Shristi's strong liquidity with its use of the fund-based working capital facilities being minimal at around 39% during the 12 months ended May 2016. The ratings are further supported by its founders' operating experience of over two decades in the textile industry. RATING SENSITIVITIES Positive: A substantial revenue growth along with the stable profitability leading to a sustained improvement in the credit profile could lead to a positive rating action. Negative: A substantial decline in the revenue or profitability resulting in a sustained deterioration in the credit profile could lead to a negative rating action. COMPANY PROFILE Shristi is a spinning unit, located close to Coimbatore. It is involved in the spinning of cotton yarn and production of fabrics. The unit has an installed capacity of 16,800 spindles and 788 rotors. Shristi's ratings: -- Long-Term Issuer Rating: affirmed at 'IND BB'/Stable -- INR107.6 million long term loans (reduced from INR 149.3 million): affirmed at 'IND BB'/Stable -- INR160 million fund-based facilities (increased from INR 140 million): affirmed at 'IND BB'/Stable/'IND A4+' -- INR18.5 million non-fund-based working capital facilities: 'IND A4+'; rating withdrawn as the debt has been paid in full SILVERDALE FASHIONS: ICRA Withdraws B+ Rating on INR4.0cr Loan -------------------------------------------------------------- ICRA has withdrawn the [ICRA]B+ rating outstanding on the INR4.00 crore long term cash credit facilities and the [ICRA]A4 rating outstanding on the INR1.00 crore short term non fund based facilities of Silverdale Fashions, as there is no amount outstanding against the rated facilities. The rating was under notice of withdrawal and is withdrawn as the period of notice of withdrawal is complete. SMITH STRUCTURES: CRISIL Reaffirms B+ Rating on INR90MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facility of Smith Structures (India) Private Limited (SSIPL) continue to reflect modest scale of operation and large working capital requirement along with below average financial risk profile marked by low net worth. These rating weaknesses are partially offset by extensive experience of the promoters in the industry along with near term revenue visibility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes SSIPL will continue to benefit from its promoter experience in the industry. The outlook may be revised to 'Positive' in case of significant increase in the company's scale of operations along with profitability leading to higher accruals and improvement in the overall financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the company's liquidity, driven by large incremental working capital requirements, lower cash accruals or any large debt funded capex. Update For the year 2015-16 (refers to April 1st to march 31st), the company's turnover is estimated to be around INR320 million supported by sustained albeit moderate order flow during the year. The company has an order book of more than INR200 million to be executed over period of next 3 to 4 months Over the medium term, the sales growth is expected to grow at pace of around 20 per cent supported by its order-flows. In the year 2015-16, the company's profitability at operating level is estimated to around 8.3 per cent. Over the medium term, the op margins are expected to remain in range of 8 to 9 per cent. For the year 2015-16, the company's working capital requirements continue to be dominated by book debts and inventory at around 90 and 85 days respectively. Over the medium term, CRISIL expects group's operating cycle to remain in the range of 210 to 220 days and the working capital requirements to rise with scale of operations. Over the medium term, the financial risk profile is expected to be constrained by its high leverage, below average debt protection metrics. Established in 2011, SSIPL is engaged in Pre ' Engineered Metal Building System (PEB) designs, fabrication and erection works. The company's capacity currently stands at around 50,000 MT per annum. The plant is located in Gandhidham (Kutch) Gujarat and is managed & operated by the Panchal family. SSIPL is estimated to report a profit after tax (PAT) of INR3.1 million on sales of INR320 million for 2015-16, against a PAT of INR2.6 million on sales of INR268 million for 2014-15. SREE GURU: CRISIL Assigns 'B' Rating to INR56.2MM Cash Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Sree Guru Renuka Rice Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 56.2 CRISIL B/Stable Proposed Long Term Bank Loan Facility 0.3 CRISIL B/Stable The rating reflects SGRRI's modest scale of operations in the highly fragmented rice industry and susceptibility to erratic monsoon. The rating also factors in a below-average financial risk profile because of weak capital structure and weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of the proprietor in the rice industry. Outlook: Stable CRISIL believes SGRRI will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' in case of sustainable improvement in scale of operations and profitability, leading to an improvement in financial risk profile. The outlook may be revised to 'Negative' in case of aggressive, debt-funded expansions, or a significant decline in revenue and profitability, leading to deterioration in the financial risk profile. Set up as a proprietorship firm in 2006 by Mr. B M Nanjiah, SGRRI processes paddy into rice. It has an installed milling capacity of about 500 tonne per day at Davangere, Karnataka. SREE KOPPAMMAL: CRISIL Ups Rating on INR110MM Cash Loan to B+ ------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Sree Koppammal Cotton Spinning Mills Private Limited (SKC) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL B+/Stable (Upgraded from 'CRISIL D') Letter of Credit 40 CRISIL A4 (Upgraded from 'CRISIL D') Proposed Long Term 30 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL D') The upgrade reflects the improvement in the company's liquidity with closure of term loans through equity infusion by promoters in fiscal 2016. Because of nil term debt, and sustained operating income and profitability, CRISIL believes the liquidity will remain adequate over the medium term. The ratings reflect SKC's exposure to intense competition, susceptibility to volatility in raw material prices, and average debt protection metrics. These weaknesses are partially offset by the extensive experience of its promoters in the textile industry. Outlook: Stable CRISIL believes SKC will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of higher-than-expected cash accrual driven by revenue growth. The outlook may be revised to 'Negative' in case of deterioration in financial risk profile because of decline in revenue and profitability, or larger-than- expected debt-funded capital expenditure. SKC, based in Aruppukottai, Tamil Nadu, was incorporated in 1995. Itmanufactures cotton yarn and polyester'cotton-blended yarn. Its operations are managed Mr. T R S Babu. SKC, on a provisional basis, had profit after tax (PAT) of INR1.68 million on revenue of INR659.24 million for fiscal 2016, against PAT of INR0.46 million on revenue of INR617.38 million for fiscal 2015. SRIVEN BEER: ICRA Suspends B+ Rating on INR7.0cr Fund Based Loan ---------------------------------------------------------------- ICRA has suspended long term rating of [ICRA]B+ assigned to the INR7.00 crore fund based facilities and INR0.50 crore unallocated limits of Sriven Beer And Wine Distributors. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the firm. Sriven Beer & Wine Distributors was founded as a partnership firm on September 10, 2010 with Mr. Y.D. Prasad Reddy and M/s. Mandovi Distilleries & Breweries Pvt Ltd. as partners with 50% partnership interest each. The firm is the distributor for United Spirits Ltd (USL), & United Breweries Ltd. (UBL), for Chandrapur district and Nagpur in Maharashtra. The firm has distribution rights for brands like Mc Dowels No. 1 Whiskey, Signature Rare Whiskey, Black Dog Scotch Whiskey, Diplomat Whiskey, Royal Challenge Whiskey, Kingfisher Beers, Canon Beers. SUN ARK: CRISIL Assigns B+ Rating to INR30MM Cash Loan ------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4+' ratings to the bank facilities of Sun Ark Aluminium Industries Private Limited (SAIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable Letter of Credit 90 CRISIL A4 The ratings reflect SAIPL's reflects the small scale of operations in the intensely competitive aluminium powder manufacturing segment, its working capital intensive operations and the susceptibility of operating profitability to fluctuation in raw material prices. These weaknesses are partially offset by the extensive industry experience of the promoters in the aluminium powder manufacturing industry and its moderate financial risk profile marked by comfortable gearing and debt protection metrics. Outlook: Stable CRISIL believes that will continue to benefit from the extensive industry experience of promoters. The outlook may be revised to 'Positive' in case of higher than expected revenues leading to better than expected cash accruals .Conversely, the outlook may be revised to 'Negative' if the company's revenues or operating profitability decline, or in case of a stretch in the working capital cycle or higher than expected debt funded capex leading to weakening of its financial risk profile. Established in 2007, Sun Ark Aluminium Industries Private Limited (SAIPL) manufactures aluminium powder, which find its application in manufacturing refractory moulds and explosives. The operations are currently being managed by Mr.Sivakumar. SUSEE AUTO: ICRA Suspends 'D' Rating on INR15.95cr LT Loan ---------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA]D assigned to the INR2.05 crore term loan facilities, INR5.00 crore fund based facilities and INR15.95 crore long-term proposed facilities and the short-term rating of [ICRA]D assigned to INR0.50 crore non- fund based facilities of Susee Auto Sales and Service Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. SUSEE AUTOMOBILES: ICRA Suspends B- Rating on INR5.0cr Loan ----------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA]B- assigned to the INR1.71 crore term loan facilities, INR5.00 crore fund based facilities and INR3.89 crore proposed facilities of Susee Automobiles Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. SUSEE CARS: CRISIL Suspends B+ Rating on INR40MM Cash Loan ---------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Susee Cars and Trucks Private LImited (SCTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B+/Stable Channel Financing 30 CRISIL B+/Stable Proposed Cash Credit Limit 8 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by SCTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCTPL is yet to provide adequate information to enable CRISIL to assess SCTPL'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 2003, SCTPL is an authorised dealer for Hyundai Motor India Ltd (rated, CRISIL A1+). The company runs three showrooms in Tamil Nadu. SCTPL is promoted by Mr. S. Rajasekharan and his family members. TAPI PRESTRESSED: ICRA Reaffirms 'D' Rating on INR46.68cr Loan -------------------------------------------------------------- ICRA has reaffirmed Tapi Prestressed Products Limited's long term rating on INR46.68 crore fund based limits from at [ICRA]D. ICRA also reaffirmed the [ICRA]D ratings to INR20.59 crore non find based limits (revised from INR71.00 crore). ICRA has also reaffirmed the long term and short term rating of [ICRA]D to INR38.73 crore unallocated limits of TPPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term, Fund Based- Cash Credit 46.68 [ICRA]D (reaffirmed) Short Term, Non- Fund Based 20.59 [ICRA]D (reaffirmed) Long term/Short Term-Unallocated 38.73 [ICRA]D (reaffirmed) ICRA's rating action is driven by persistent overutilization of working capital limits, due to the stretched liquidity position of the company mainly on on back of long pending receivables along with sizeable money stuck as security deposit and retention money given non-moving orders. ICRA takes note of long standing experience of the promoters in the civil construction industry, approved Class-I(A) contractor status registered with various government and semi-government undertakings, municipal corporations and water supply boards and backward integration of the company into manufacturing of prestressed concrete pipes. TPPL is a closely held public company promoted by the the Kotecha Group and was incorporated in the year 1986. The company is involved in undertaking various turnkey projects involving water supply, irrigation, roads and other such civil constructions. The company is registered as a Class-I(A) contractor with various government and semi-government undertakings, Municipal Corporations and Water Supply Boards. The company has a track record of 35 years in construction and has executed several projects in the states of Maharashtra, Gujarat, Madhya Pradesh, Orissa, Tamilnadu, Andhra Pradesh and Karnataka with ~65% of the current order book accounting for projects in Maharashtra. The company is also engaged in manufacturing of prestressed concrete pipes and has a manufacturing plant located in Bhusawal with an installed capacity of manufacturing 50,000 pipes annually. The diameter of the prestressed pipes rages from 300 mm to 1800 mm and pressure ranges from 4 kg/cm2 to 30 kg/cm2. THRIMATHY CONTRACTING: CRISIL Reaffirms B+ Rating on INR130M Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Thrimathy Contracting Company (TCC) continue to reflect a modest scale and working capital-intensive nature of operations in the civil construction industry. These rating weaknesses are partially offset by the extensive industry experience of the firm's proprietor. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL A4 (Reaffirmed) Cash Credit 130 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes TCC will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' in case of a significant increase in scale of operations while operating profitability is maintained, or improvement in working capital management, resulting in a better financial risk profile. The outlook may be revised to 'Negative' if cash accrual declines, or capital requirement increases substantially, leading to a weak financial risk profile. TCC, established in 2001, is a Malappuram, Kerala-based civil contractor. Its operations are managed by its proprietor, Mr. V P Thrimathy. For fiscal 2016, net profit is estimated at INR10-15 million on contract receipts of INR368.3 million; net profit was INR13.3 million on contract receipts of INR225 million for fiscal 2015. V. S. MULTIMETAL: CRISIL Suspends B+ Rating on INR140MM Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of V. S. Multimetal Private Limited (VSMPL; part of the Agarwal group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 140 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 1.8 CRISIL B+/Stable Term Loan 68.2 CRISIL B+/Stable The suspension of rating 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' For arriving at the ratings, CRISIL has combined the business and financial risk profiles of VSMPL, Vivek Steelco Private Limited (VSPL), Shubhlaxmi Castings Private Limited (SCPL), Arjun Alloys (AA), and Anjani Re-Rolling Mills Private Limited (ARMPL). This is because all these entities, together referred to as the Agarwal group, have the same promoters and management and significant intra-group transactions. VSMPL 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, ARMPL, and AA - are also engaged in similar businesses. While, ARMPL and VSPL have rolling mills, SCPL and AA have induction furnace units. VAISHNAVI FOOD: ICRA Assigns C+ Rating to INR6.0cr Loan ------------------------------------------------------- ICRA has assigned its rating of [ICRA]C+ to the INR6.00 crore long term fund based bank facility of Vaishnavi Food products. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-Based Working Capital Limits 6.00 [ICRA]C+; assigned ICRA's rating is constrained by the modest scale of operations of the firm and the highly fragmented and competitive nature of the industry with low entry barriers and limited pricing power. The rating also factors in the firm's high working capital intensity in line with seasonal nature of business and high inventory levels which results in stretch liquidity position of the firm. ICRA notes that the firm continues to be exposed to risks inherent in the agro-based food processing industry in terms of fluctuation in demand and supply and price variations. The rating, however, favorably factors in the extensive experience of the promoters, spanning over two decades, in the food processing business and well established customer relationships. Going forward, the firm's ability to increase its scale of operations while optimally managing its working capital requirements will remain the key rating sensitivities. Incorporated in 2011, VFP is engaged in processing and freezing of Green Peas as well as other vegetables. The firm started its commercial operations in 2011 at its manufacturing unit located at Sultanpur Patti,Bazpur (U.S. Nagar).The firm has the production facility of 2 metric tonnes of peas per hour. Recent Results During FY2015, VFP reported a net profit of INR0.19 crore on an Operating Income (OI) of INR9.00 crore, as against a net profit of INR0.22 crore on an OI of INR7.77 crore in FY2014. WELCOME TILES: ICRA Reaffirms 'B+' Rating on INR7.0cr Loan ---------------------------------------------------------- ICRA has reaffirmed the long term rating at [ICRA]B+ to the INR4.00 crore cash credit facility and INR7.00 term loan facility of Welcome Tiles Private Limited (WTPL). ICRA has also reaffirmed the short term rating at [ICRA]A4 to the INR1.35 crore short term non fund based facility of WTPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- Cash Credit Limit 4.00 [ICRA]B+; Reaffirmed Fund Based-Term Loan 7.00 [ICRA]B+; Reaffirmed Non Fund Based Bank Guarantee 1.35 [ICRA]A4; Reaffirmed The ratings continue to remain constrained by WTPL's modest operating scale, decline in revenue by 3.4% in FY2016 to INR20.4 crore down from INR21.1 crore in FY2015 mainly due to drop in realizations. The ratings also take into account the highly competitive nature of the ceramic tile industry and vulnerability of WTPL's profitability to the cyclicality associated with the real estate industry and to the adverse movements in prices of key input materials and gas prices. The capital structure of the company remained stretched as can be reflected from high gearing of 2.4 times as on March 31, 2016. Further the coverage indicators remained moderate with interest coverage of 3.4 times and NCA/Total Debt of 19.6% as on March 31, 2016. The ratings, however, favourably factors in the extensive experience of the promoters in the ceramic business as well as location advantage of the company by virtue of proximity to raw material sources and skilled manpower. ICRA further notes that the declining gas prices and the installation of Gasifier will results into considerable savings in fuel cost and is expected to alleviate cost pressures to some extent. ICRA expects WTPL's revenues to witness a normal growth of ~10% in anticipation of improved capacity utilization levels. The profitability is expected to be in line with the previous fiscals. WTPL's capital structure is likely to remain moderate over the medium term with no major capex expected. Further the company's ability to infuse funds to support its capital structure, increase the scale of operations and manage its working capital efficiently would be key rating sensitivities. Welcome Tiles Private Limited (WTPL) was incorporated in January 2013. The commercial production was commenced in October 2013. The company is owned and managed by Mr. Nilesh Saradava and other family members. The manufacturing facility is located in Morbi, Gujarat and operates in two shifts of 12 hours each with current installed capacity of 25988 Metric Tons Per Annum (MTPA). WTPL manufactures wall tiles of multiple sizes i.e. 10X15, 10X18 and 12X12 which find wide application in commercial and residential buildings. Recent Results For the year ended 31st March, 2016, the company reported an operating income of INR20.36 crore with profit before taxes of INR0.62 crore as per the provisional unaudited numbers. ==================== N E W Z E A L A N D ==================== MILSON AEROSPACE: To Start Bankruptcy Proceedings vs Director ------------------------------------------------------------- Stuff.co.nz reports that the director and owner of a Manawatu aircraft refurbishment company may be made bankrupt, as liquidators of his company look to find money for creditors. Milson Aerospace, a Manawatu company which restored aircraft and took care of its own aerospace collection, was placed into liquidation in May 2015 at the request of freight company DHL Global Forwarding, Stuff.co.nz notes. At the time, the company's sole director and shareholder David French told Stuff he had been suffering health problems before the liquidation. Stuff.co.nz relates that in their latest report, liquidators Damien Grant and Steven Khov of Waterstone Insolvency said they were still investigating the company's books, records and affairs. They were also pursuing French for an overdrawn account, which involved them issuing a bankruptcy proceeding, the report said, Stuff.co.nz relays. According to Stuff.co.nz, no assets had been realised by the liquidators in the past month, which means they had been unable to pay Inland Revenue the NZ$3,100 it was owed. Five unsecured creditors had also made claims worth NZ$38,000 collectively, Stuff.co.nz discloses. "It is currently too early to determine whether any distribution to creditors is likely," the report, as cited by Stuff.co.nz, said. ==================== S O U T H K O R E A ==================== HYUNDAI MERCHANT: To Complete Debt-For-Equity Swap This Month ------------------------------------------------------------ Yonhap News Agency reports that Hyundai Merchant Marine Co. proposes to sell stocks worth KRW2.49 trillion (US$2.16 billion) this month, which includes KRW1.9 trillion worth of debt-for- equity swap, industry sources said July 12. According to Yonhap, sources said Hyundai Merchant is seeking to sell stocks at KRW8,890 per share to creditors, bondholders, owners of chartered ships and even retail investors this month. Of the proposed amount, some KRW1.9 trillion, or 76%, is part of a debt rescheduling scheme agreed on with creditors, bondholders and the owners of chartered fleet, the report discloses. After the stock sale, the state-run Korea Development Bank-led creditors will emerge as the No. 1 shareholder in the shipping line with some 40%, according to Yonhap. Yonhap relates that the stake held by current majority shareholders, including Hyundai Group affiliates, will be reduced to below 1 percent, from 22.6%, after the stock sale and a capital reduction for them, the sources said. In April, its creditors approved the shipper's restructuring plan in return for the company meeting three key prerequisites -- a debt recast, a charter rate cut and an inclusion into a global shipping alliance, Yonhap recalls. Earlier, Hyundai Merchant said its talks to be part of the world's largest shipping alliance, 2M, have made significant progress, raising hopes that the negotiation will soon be completed. Yonhap says Hyundai Merchant has reached an agreement with owners of its chartered ships to cut leasing rates by slightly over 20 percent. Also, bondholders of Hyundai Merchant Marine approved a KRW804.2 billion debt rescheduling proposal, under which more than half of its debt will be swapped for the shipper's stocks and the remaining debt will be paid back in two years. The creditors also agreed to swap KRW680 billion worth of debt for the shipper's stocks as part of an effort to keep the shipper afloat, Yonhap notes. 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. SAMSUNG HEAVY: Self-Rescue Plan to be Finalized This Week --------------------------------------------------------- Yonhap News Agency reports that the state-run Korea Development Bank will finalize a self-rescue plan proposed by Samsung Heavy Industries Co., a major South Korean shipyard, this week, which includes a capital increase and workforce layoffs, industry sources said on July 12. Yonhap relates that sources said the policy lender, the main creditor for the shipbuilder, will decide whether to approve the proposed self-restructuring plan, after reviewing it along with a consulting firm. Earlier, Samsung Heavy proposed a KRW1.45 trillion self-rescue plan, including stock sales and job cuts, as it grappled with falling freight rates amid slackened global demand and tougher competition, Yonhap discloses. The plan also includes selling non-core assets and suspending part of its production facilities. Industry watchers predict the company could raise about KRW1 trillion by selling new stocks to its affiliates, Yonhap states. Samsung Electronics Co., the group's flagship, is the largest stakeholder in the shipyard with 17.62%, and other affiliates, such as Samsung Life Insurance Co. and Samsung SDI Co., also own stakes. Yonhap News Agency meanwhile reports that workers at Samsung Heavy went on a partial strike last week, demanding the company nix its tough restructuring plan, marking the first time that a troubled South Korean shipbuilder has faced a labor dispute. According to the report, Samsung Heavy workers' partial strike is the first of its kind this year with their counterparts at Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. set to take similar collective action. Samsung Heavy is one of South Korea's three major shipyards reeling from snowballing losses caused by falling global demand and tougher competition. The Seoul government and creditor banks, including the state-run Korea Development Bank, have called for "bone-crushing" reform efforts, including massive job cuts. Workers at Daewoo Shipbuilding & Marine Engineering Co. also approved a strike proposal earlier this week, and Hyundai Heavy Industries Co.'s unionized workers are set to vote next week on whether they will go on a strike, Yonhap reports. Samsung Heavy Industries Co., Ltd. manufactures crude oil tankers, container vessels, bulk carriers, cruisers, and passenger ferries. The Company also produces steel and bridge structures, and material handling equipment. In addition, Samsung Heavy Industries provides civil engineering, architectural, and plant construction services. ********* 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 ***