/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/161212.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, December 12, 2016, Vol. 19, No. 244 Headlines A U S T R A L I A ARISTOCRAT LEISURE: Moody's Hikes Corporate Family Rating to Ba1 NO. THIRTEEN HAIR: First Creditors' Meeting Slated for Dec. 19 PLUTON RESOURCE: Watpac Sue KordaMentha for Mining Services C H I N A GUANGXI FINANCIAL: Moody's Assigns Ba1 Corporate Family Rating GUANGZHOU R&F: Investments No Impact on Moody's Ba3 CFR I N D I A AMRIT FEEDS: ICRA Suspends 'D' Rating on INR300cr Line of Credit ANIL AND COMPANY: CRISIL Ups Rating on INR92MM Bill Loan to BB- AVADH INFRA: ICRA Reaffirms B+ Rating on INR50cr Term Loan BHARAT INDUSTRIAL: ICRA Suspends B+ Rating on INR6.05cr Loan BIHAR RAFFIA: CRISIL Lowers Rating on INR118MM Term Loan to 'D' BRAZA TYRES: CRISIL Raises Rating on INR60MM Cash Loan to BB- CINQ MICRON: CRISIL Upgrades Rating on INR60MM Cash Loan to BB- CRESCENT THERAPEUTICS: ICRA Suspends B+ Rating on INR8.6cr Loan DEEPAK FASTENERS: CRISIL Cuts Rating on INR1.23BB Cash Loan to D GAURAV WORLDWIDE: ICRA Assigns 'B' Rating to INR50cr Cash Loan GLOBAL TECHNOLOGIES: ICRA Suspends B+/A4 Rating on INR7cr Loan HANUMAN AGRO: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan HEMANTH HOMES: CRISIL Suspends B+ Rating on INR59.5MM LT Loan HERODEX POWER: CRISIL Assigns 'D' Rating to INR190MM Cash Loan IENERGIZER LIMITED: Moody's Affirms Caa1 Corporate Family Rating INTERNATIONAL MEGA: CRISIL Lowers Rating on INR749MM LT Loan to D JAI MAAKALI: ICRA Reaffirms 'D' Rating on INR45cr Cash Loan JAYANTI BOARDS: ICRA Suspends B+ Rating on INR2.0cr LT Loan KRIFOR INDUSTRIES: ICRA Reaffirms 'B' Rating on INR26.26cr Loan KSHITIJ KUMAR: ICRA Reaffirms B+ Rating on INR10cr Loan LAKSHMI COT-GIN: ICRA Reaffirms B+ Rating on INR22cr Loan LAKSHMI GANAPATHI: ICRA Suspends B+ Rating on INR4.75cr Loan LAKSHMIDURGA TEXTILES: ICRA Reaffirms B+ Rating on INR7.5cr Loan MADRAS FERTILIZERS: ICRA Assigns 'C' Rating to INR191.4cr Loan MAHESWARI FERTILIZERS: CRISIL Reaffirms B Rating on INR50MM Loan MANASA QUALITY: CRISIL Reaffirms B+ Rating on INR450MM Pack Loan MANGALDEEP COTTON: ICRA Reaffirms 'B' Rating on INR5.0cr Loan MEGATRONIC POWER: ICRA Suspends B- Rating on INR7.11cr Loan NAKSHATRA UPSCALE: CRISIL Suspends B+ Rating on INR200MM LT Loan NIRMALA INFRA: ICRA Suspends C+ Rating on INR8.3cr Loan PANSARI STEELS: ICRA Suspends 'B' Rating on INR8cr Loan PATNAIK STEELS: CRISIL Ups Rating on INR671.1MM Cash Loan to 'C' PEKON ELECTRONICS: CRISIL Suspends B+ Rating on INR70MM Bank Loan PREMSONS SUPER: CRISIL Suspends B+ Rating on INR65MM Cash Loan RAVI METALLICS: CRISIL Suspends B- Rating on INR80MM Cash Loan RAYANI SPINTEX: ICRA Reaffirms 'B' Rating on INR19.4cr LT Loan SHANTI DEVELOPERS: CRISIL Suspends 'B' Rating on INR50MM Loan SHARDA COTTON: CRISIL Suspends B+ Rating on INR165.3MM Cash Loan SHIV SHAKTI: CRISIL Lowers Rating on INR327.5MM Loan to 'D' SHRI KRISHNA: ICRA Suspends B+ Rating on INR13cr Fund Based Loan SIDDHARTH PROPERTIES: CRISIL Suspends 'C' Rating on INR430MM Loan SIDDHI PROPERTY: CRISIL Suspends 'D' Rating on INR130MM Term Loan SINGLA RICE: ICRA Reaffirms 'B' Rating on INR7.5cr LT Loan SRI BALMUKUND: CRISIL Suspends B+ Rating on INR70MM Cash Loan SRI JYOTI: ICRA Upgrades Rating on INR40.67cr Loan to 'B-' SRI LAKSHMIKANTHA: ICRA Suspends 'B' Rating on INR15cr Loan SRI VENKATRAM: ICRA Suspends 'D' Rating on INR23cr Loan SOBANA OFFSET: CRISIL Suspends 'D' Rating on INR33.5MM Term Loan SUMANJALI PARBOILED: ICRA Suspends B+ Rating on INR8.35cr Loan VIJAY STEELS: CRISIL Suspends 'D' Rating on INR45MM Cash Loan VIJAYA LAKSHMI: ICRA Suspends 'B' Rating on INR9.0cr Loan WAVE HOSPITALITY: CRISIL Hikes Rating on INR1.40BB Loan to BB- M A L A Y S I A PERISAI PETROLEUM: Emas Tries to End Obligation to Pay US$43MM N E W Z E A L A N D HANSA LIMITED: Liquidators Find NZ$9MM in Suspected Ponzi Scheme S I N G A P O R E PACIFIC ANDES: May Have Overstated Assets, Revenues and Profits SKY TRAVEL: STB Revokes License as Travel Agency Closes S O U T H K O R E A SAMSUN LOGIX: Court OKs Termination of Corporate Turnaround S R I L A N K A NATIONAL DEVELOPMENT: S&P Lowers ICR to 'B'; Outlook Stable - - - - - ================= A U S T R A L I A ================= ARISTOCRAT LEISURE: Moody's Hikes Corporate Family Rating to Ba1 ---------------------------------------------------------------- Moody's Investors Service has upgraded Aristocrat Leisure Ltd's corporate family rating to Ba1 from Ba2. At the same time, Moody's has also upgraded the senior secured term loan facility and revolving credit facility ratings of Aristocrat International Pty Limited to Ba1 from Ba2. The rating outlook is stable. RATINGS RATIONALE "The ratings upgrade reflects the very strong operational performance delivered by Aristocrat across all of its product lines and geographical segments in FY2016", says Matthew Moore, a Moody's Vice President and Senior Credit Officer. "The material earnings growth achieved in the year, combined with the application of free cash flow to debt reduction, has allowed the company to achieve strong credit metrics in line with the higher rating level", Moore adds. Aristocrat's revenue and earnings over the last two years have been supported by the strong performance of its portfolio of games and cabinet offerings, the successful integration of the Video Gaming Technologies, Inc (VGT) acquisition and the growth in its digital business. The company has had strong increases in platform sales in both Australia and the U.S. in fiscal 2016, despite both markets experiencing largely flat to declining growth overall. Aristocrat's collection of themed and proprietary titles have enabled it to achieve a higher average selling price for its platforms, as well as improved average gaming revenue per day from its gaming operations. Also, the diversity and quality of earnings has improved following the VGT acquisition and the significant increase in the installed base of the Class III premium gaming operations in the U.S. This has resulted in recurring revenue increasing to around 50% of total revenue, enhancing earnings stability and reducing the reliance on higher volatility product sales. On the back of the company's material earnings growth and debt reduction, Aristocrat's credit metrics have improved to strong levels with leverage, as measured by debt/EBITDA, improving to 1.5x in fiscal 2016 from around 3.5x in fiscal 2015. Moody's expects Aristocrat's debt/EBITDA will range between 1.5- 2.0x over the next 12-18 months. However, the rating agency notes that actual financial leverage will depend on Aristocrat's financial policies and potential future growth and/or capital management initiatives. The stable outlook reflects the rating agency's expectation that Aristocrat will continue to defend its market share in Australia, while looking for further organic growth in the U.S. market and through its digital platform. This should underpin continued solid earnings and credit metrics for the company over the next 12-18 months. However, Moody's does note that that earnings will continue to be subject to potential volatility and strong competition. This underscores the need for continuing innovation to develop new titles to maintain and grow market share. As such, Moody's expects the company to increase its spending on design and development in order to protect its market share and margins. WHAT COULD CHANGE THE RATING The ratings could be downgraded if competitive or cyclical factors led to meaningful earnings deterioration and/or the company pursues large debt-funded acquisitions/shareholder initiatives. Specifically, ratings would likely be downgraded if adjusted debt/EBITDA increases above 3.0x on a sustained basis. Ratings could also be downgraded if liquidity contracts meaningfully. Further positive rating actions would likely be dependent on Aristocrat committing to public financial policy targets in-line with an investment grade rating. For an investment grade rating, Moody's would expect Aristocrat to maintain debt/EBITDA below 2.0x on a sustained basis. For the ratings to be upgraded Moody's would also expect Aristocrat to demonstrate a track record of sustaining recent earnings growth through the cycle and further strengthening its recurring revenues. An upgrade to investment grade would also likely require transitioning to a fully unsecured capital structure. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. Aristocrat Leisure Ltd is a leading global provider in the design, development and distribution of gaming content, platforms and systems. Aristocrat's products and services include electronic gaming machines and casino management systems. The company is also increasing its presence in the online social gaming. NO. THIRTEEN HAIR: First Creditors' Meeting Slated for Dec. 19 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of NO. Thirteen Hair Pty Ltd, trading as Corcorz for Hair, will be held at the offices of Mackay Goodwin, Level 10, 239 George Street, in Brisbane, Queensland, on Dec. 19, 2016, at 3:00 p.m. Domenic Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of NO. Thirteen on Dec. 7, 2016. PLUTON RESOURCE: Watpac Sue KordaMentha for Mining Services ----------------------------------------------------------- Australian Financial Review reports that property developer and mining contractor Watpac has lashed insolvency firm KordaMentha after launching legal action against three of its partners as it seeks AUD3.2 million for work on an iron ore mine. In a writ filed with the Supreme Court of Western Australia, Watpac claimed the amount owed was agreed to by the defendants; KordaMentha partners John Bumbak, Cliff Rocke and Janna Robertson, AFR relates. According to AFR, Watpac claims it is owed AUD3.2 million for mining services work carried out, at the request of KordaMentha, at Pluton Resource's Cockatoo Island iron ore mine in Western Australia in late 2014 and early 2015. At the time, Mr. Bumbak, Mr Rocke and Ms Robertson were acting on behalf of KordaMentha as the receivers and managers of Pluton, the report says. AFR relates that Watpac chief executive Martin Monro said the fact the company had been forced to pursue legal action reflected "a massive hole in the structural arrangements for the way in which work is conducted in these circumstances". According to the report, KordaMentha co-founder Mark Mentha said the firm was still trying to recoup funds it was owed by Hong Kong group, General Nice Resources (GNR), which appointed it as Pluton's receiver in November 2014. But Mr. Monro said it was unreasonable to expect Watpac to wait almost two years for payment, AFT relates. "For an organisation that has already lost a substantial amount of money [on Pluton], under no circumstances would we have done the work we did under the instructions of KordaMentha and incurred those costs had we had an expectation more than two years later we would still not be paid and we would be forced to sue individuals through the court system to recover that money," AFR quotes Mr. Monro as saying. "I really worry about the obvious flaws that this particular set of circumstances has brought up in respect to working in this way with receivers who expect us to take a risk on their warranties. It is not reasonable and [waiting] two years is more than patient." Under section 419 of the Corporations Act, receivers are personally liable for any debts a company incurs while they are at the helm, the report notes. AFR says the KordaMentha partners are understood to have racked up about AUD8 million in bills during the five months they were the company's receivers, with about AUD5 million thought to remain outstanding, including the AUD3.2 million owed to Watpac. On Dec. 5, KordaMentha successfully petitioned for a GNR subsidiary, GNR Hong Kong, to be wound up, AFR discloses. "We have lots of avenues available to us to pursue but it all takes time," Mr. Mentha, as cited by AFR, said, adding the company had various guarantees and a registered lien in relation to the debt it incurred, giving it security over the assets at Cockatoo Island. "We are comfortable with the value of Cockatoo Island and we are comfortable all creditors will be paid," he said. "All the creditors agreed to take a course that we would deal with each of the processes that we were moving through." Ms. Robertson has left KordaMentha and Mr. Rocke recently resigned citing personal reasons. Mr. Bumbak is still employed by KordaMentha, the report notes. AFR adds that Mr. Mentha said there was no issue in relation to the partners' performance. According to AFR, the controversy represents another twist in the lengthy Pluton saga, which has seen three separate appointments of receivers to the company since November 2014. After KordaMentha was retired in March 2015, Pluton sunk back into receivership in September 2015, this time with Pitcher Partners as receivers and PwC as administrators, says AFR. PwC was eventually appointed liquidators of the company by the Supreme Court in August 2016 after a deed of company arrangement was terminated. The assets of the company remain subject to the control of Pitcher Partners, which is also reliant on ongoing funding from GNR, adds AFR. About Pluton Resources Pluton Resources Limited was engaged the exploration and production of mineral assets within Australia. The Company's interests focused on Cockatoo Island and Irvine Island-two of the three islands that make up the Kimberley Iron Ore Hub (KIOH) in Yampi Sound, Western Australia, as well as four tenements in Collier Bay. The Irvine Island Project is situated immediately adjacent to Pluton's Cockatoo Island hematite mining operation and is located approximately 140 kilometers north of Derby in Yampi Sound, located off the northern Kimberley coast of Western Australia. The Cockatoo Island operation is located approximately 140 kilometers north of Derby in Yampi Sound, located off the northern Kimberley coast of Western Australia. ========= C H I N A ========= GUANGXI FINANCIAL: Moody's Assigns Ba1 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 corporate family rating (CFR) to Guangxi Financial Investment Group Co., Ltd (GXFIG). The ratings outlook is stable. RATINGS RATIONALE GXFIG's Ba1 CFR combines its baseline credit assessment (BCA) of ba3, and a two-notch uplift based on Moody's expectation of strong support for the company from the Guangxi Provincial government, under Moody's joint-default analysis approach for government-related issuers. The ba3 BCA reflects GXFIG's (1) dominant position in the microfinance and guarantee businesses in Guangxi province; and (2) good profitability, financial leverage and liquidity metrics. However, the BCA is constrained by GXFIG's (1) rapid asset growth and business expansion; (2) high geographic and sector concentration of its financial services; and (3) increasing asset quality pressure on its microfinance and guarantee businesses. The two-notch uplift reflects Moody's expectation of strong support from the Guangxi Provincial government, based on GXFIG's strategic importance in the development of the financial services sector in Guangxi and financing of the province's small- medium- sized enterprises (SMEs). GXFIG was founded in 2008 and is 100% owned by the Guangxi State- owned Assets Supervision and Administration Commission (SASAC). It is a financial conglomerate and its subsidiaries are engaged in microfinance, SME credit guarantee, P&C insurance, credit re- guarantee, private equity investment, leasing and distressed asset management. GXFIG plays key roles in supporting SME financing and facilitating the development of the financial services sector in Guangxi, and has a track record of receiving capital injections and subsidies from the local governments. GXFIG's investment decisions are directed by the government. The company is also in line with Guangxi government's policy to attract funding from other provinces into Guangxi province. In addition, a letter of support from Guangxi SASAC further demonstrates the government's commitment to providing capital support for GXFIG's business development and liquidity support if the company faces any liquidity crunch. These factors underpin the two notches of uplift included in GXFIG's final Ba1 rating. The group has a strong franchise and experience in SME and micro enterprise financing in Guangxi. Its credit guarantee business was established in 2002, and its microfinance business held an approximate 60% share of the market in Guangxi in terms of total outstanding loans at end-September 2016, according to data from the People's Bank of China. The company reports good profitability and capital adequacy. Its return on average assets has been around 2.0%-2.5% over the past few years. It has also received share capital injections, totaling RMB1 billion over 2013-2014, from the Guangxi government to support its business growth and expansion. GXFIG's tangible common equity to total assets ratio exceeded 15% at end-2015. GXFIG has well-spread debt maturities and modestly diversified funding sources. Nearly 70% of its funding sources have longer than one year maturities and are evenly distributed over the next five years. It has diversified its interest bearing liabilities to bank borrowing, bond financing, loans from distressed asset management companies, asset management products and trust products from different provinces in China, thereby helping mitigate refinancing risk, while some of these are shadow banking and confidence sensitive funding. However, the company has reported rapid asset growth and business expansion over the past few years, with total assets rising by more than 50% to RMB51.3 billion at end-2015 from RMB31.5 billion at end-2014. Such rapid growth and expansion create operating and credit risks and could lead to a deterioration in asset quality as China's economic growth rate moderates. Since GXFIG's major businesses and operations are in Guangxi province, it is vulnerable to regional economic uncertainties and potential volatility in earnings and asset quality through the economic cycles. The company reported a significant increase in the non-performing loan (NPL) ratio of its microfinance business to 1.9% at end-June 2016 from 0.5% at end-2013. Moody's has not notched GXFIG's issuer rating for structural subordination because majority of its debt are held at the holding company level. Debt issued by the holding company accounted for nearly 90% of total debts at end-June 2016. GXFIG's stable outlook reflects Moody's expectation that (1) support from the Guangxi government is unlikely to change in the medium term; (2) GXFIG's BCA is appropriately positioned at current level; and (3) GXFIG's rating is resilient to a hypothetical downside scenario in which the sovereign rating is downgraded by one notch. What Could Change the Rating -- Up GXFIG's ratings could be upgraded if: (1) Moody's believes that support from central government will pass through Guangxi government due to an increased national importance of GXFIG's activities; (2) the company's obligations are directly linked to Guangxi government obligations; (3) the company maintains its asset quality as its portfolio seasons; and (4) it significantly slows its current growth rate without negatively impacting its overall financial metrics. What Could Change the Rating -- Down GXFIG's ratings could be downgraded if Moody's believes that support from Guangxi government will weaken due to GXFIG becoming less strategically important. Downward rating pressure could also emerge if its (1) 24-month coverage ratio falls below 50%; (2) secured borrowings increase to over 35% of total borrowings; (3) tangible common equity to tangible managed assets materially declines to below 10%; and/or (4) problem loans ratio exceeds 4%. The methodologies used in this rating were Finance Companies published in October 2015, and Government-Related Issuers published in October 2014. Guangxi Financial Investment Group Co., Ltd (GXFIG) is a state- owned financial conglomerate focused on SME lending and guarantee businesses in Guangxi province. Headquartered in Nanning, it reported consolidated assets of RMB51.3 billion at end-2015. GUANGZHOU R&F: Investments No Impact on Moody's Ba3 CFR ------------------------------------------------------- Moody Investors Service says that Guangzhou R&F Properties Co., Ltd.'s announced investments in Korea (Aa2 stable) -- an integrated resort project and a land parcel for residential development -- are credit negative. Nevertheless, the investments will not immediate affect its Ba3 corporate family rating, or the B1 corporate family rating of its wholly owned subsidiary, R&F Properties (HK) Company Limited (R&F HK), or the stable outlook. On Dec. 5, 2016, Guangzhou R&F announced that R&F HK entered into an agreement with Caesars Korea Holding Company, LLC (unrated) to set up a 50-50 joint venture to develop, own and operate an integrated resort in Incheon. The integrated resort -- with a total gross floor area of 170,000 sqm -- is scheduled to open by 2020, and will contain facilities such as a foreigner-only casino, a luxury hotel and serviced residences. The company will also acquire a land parcel -- 50,806.3 sqm in site area -- adjacent to the integrated resort. This land will be developed into residential properties with an estimated saleable gross floor area of around 200,000 sqm. The closing of these transactions is subject to the fulfillment of various conditions, including approvals by the Korean authorities and the issuance of the final gaming license. "Guangzhou R&F's investments in Korea, if they materialize, could increase its financial leverage and raise its business and execution risks," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer. Guangzhou R&F is new to both the gaming and residential development businesses in Korea. It will take time for the company to understand the market dynamics and customer preferences in this new market. Its performance will be subject to the market's competitive landscape, Korea's tourism industry and the travel policies of its neighboring countries, especially China (Aa3 negative). Given the different regulatory regime in Korea when compared with its home base of China, the new projects will also expose the company to regulatory uncertainties. In addition, the long term investment nature of the integrated resort and the longer cash collection cycle for property sales in Korea relative to the company's residential developments in China, will also increase the company's funding needs for its Korean projects. While the gaming experience of Caesars Korea, a wholly-owned subsidiary of Caesars Entertainment Corporation (CEC, unrated), will help manage the development and operating risks of the new integrated resorts, the debt restructuring of CEC and its subsidiary, Caesars Entertainment Operating Company, Inc. (unrated) in the US, could add uncertainties over Caesars Korea's ability to provide timely funding to the joint venture. "Nevertheless, any such impact on Guangzhou R&F's credit profile will be manageable, given the moderate scale of the investments relative to its assets and financial flexibility," adds Tsang. Moody's estimates that total investment costs for both the integrated resort, including the share of Caesars Korea, and the residential development project will register around USD1.0- USD1.2 billion (RMB6.9 to RMB8.2 billion), representing around 3%-4% of Guangzhou R&F's total assets of RMB206 billion at end- June 2016, and 6%-7% of its reported debt, including perpetual capital securities, as of the same date. The company held RMB37.3 billion in cash on hand at end-June 2016. This amount is more than sufficient to cover the investments. The investments, which will be conducted in stages, will also reduce the company's immediate funding needs. In this regard, while Guangzhou R&F is likely to fund part of its investments with debt, its key financial metrics will weaken only modestly. Moody's expects that the company's revenue/debt will continue to improve over the next 12-18 months, registering 55%-60% from 48% at end-June 2016, while its interest coverage will improve to 2.5x-3.0x from 2.4x over the same period, supported by its revenue growth, against a solid contracted sales growth, and lower interest costs. The company recorded a 24% year-on-year growth in contracted sales during the first 11 months of 2016 to RMB56.13 billion, indicating that it is on track to meeting its full year target of RMB60 billion. The principal methodology used in these ratings was Homebuilding and Property Development Industry published in April 2015. Established in 1994 and listed on the Hong Kong Stock Exchange in 2005, Guangzhou R&F Properties Co., Ltd. is a mid-sized developer in China's residential and commercial property sector. At 30 June 2016, the company's land bank totaled 38.2 million square meters in attributable saleable area, spread across 31 locations: 28 in cities and areas in China, one in Malaysia and two in Australia. ========= I N D I A ========= AMRIT FEEDS: ICRA Suspends 'D' Rating on INR300cr Line of Credit ---------------------------------------------------------------- ICRA has suspended the rating of [ICRA]D assigned to the INR300.00 crore line of credit of Amrit Feeds Ltd. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the entity. ANIL AND COMPANY: CRISIL Ups Rating on INR92MM Bill Loan to BB- --------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Anil and Company to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4+ (Upgraded from 'CRISIL A4') Foreign Bill Purchase 92 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Letter of Credit 4.5 CRISIL A4+ (Upgraded from 'CRISIL A4') Packing Credit 22.5 CRISIL A4+ (Upgraded from 'CRISIL A4') The upgrade reflects the expected improvement in the firm's credit risk profile, supported by its improved liquidity. Topline is likely to be healthy, reflected in sales of INR340 million till October 31, 2016, in fiscal 2017, and sustained profitability and working capital management. This will lead to an increase in net cash accrual and improvement in gearing to 3.5 times as on March 31, 2017, from above 4.5 times as on March 31, 2016. Debt protection metrics should also improve over the medium term. The ratings reflect the extensive experience of the firm's partners in the processed foods industry. This strength is partially offset by its large working capital requirement and exposure to intense competition. Outlook: Stable CRISIL believes AC will continue to benefit from its partners' extensive industry experience. The outlook may be revised to 'Positive' if there is a sustained improvement in working capital cycle, or in capital structure because of sizeable equity infusion. The outlook may be revised to 'Negative' in case of a steep decline in profitability, or significant deterioration in capital structure due to large, debt-funded capital expenditure or a stretch in working capital cycle. AC was set up in 1974 as a partnership firm by the Shah family. The firm is a merchant exporter of food items such as papads, pickles, canned vegetables, canned fruits, and spices. It also processes and exports spices such as chillies, coriander, and turmeric. It has four partners: Mr Anil Shah, Mr Arvind Shah, Mr Ramesh Shah, and Mr Satish Shah. AVADH INFRA: ICRA Reaffirms B+ Rating on INR50cr Term Loan ---------------------------------------------------------- ICRA has reaffirmed the long-term rating assigned to the INR50.00 crore Long Term Fund Based Limits of Avadh Infra to [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 50.00 [ICRA]B+ Re-affirmed The reaffirmation of rating, continue to factor in the moderate execution risks associated with the project as construction work is to be completed by March 2017. Also the ability of the firm to maintain project execution deadlines and achieve sales of the un- booked portion (~55% of envisaged development) in a timely manner remains critical from the credit perspective. The rating also continues to factor in the exposure of the project to cyclicality inherent in the real estate sector and the susceptibility of the profitability to fluctuations in prices of construction materials and labour costs. ICRA also notes the risks associated with a partnership concern, where any substantial withdrawal of capital will impact the capital structure of the firm adversely. The rating, however, continues to favorably take into account the long and established presence of the partners of the firm in the real estate business, favorable demand potential for Real Estate in Surat and low regulatory risks as the necessary approvals and clearances required for construction of project are already in place. Going forward, the firm's ability to maintain its sales, collection efficiency and to timely execute the on-going project given the intense competition in the Surat market would remain critical and hence the key rating sensitivities. Firm Profile Avadh Infra (AI) is a partnership firm incorporated in 2013, as a Special PurposeVehicle (SPV) for construction of the residential project named 'Avadh Kimberly' at Palsana, near Surat (Gujarat). The firm is promoted by four partners, who have extensive experience of nearly a decade in the field of real estate construction in Surat and adjoining areas. Under different partnership concerns, they have successfully executed several residential and commercial projects in the past in Gujarat. The projects are marketed under the brand of the 'Avadh' group. The project, Avadh Kimberly entails the construction of 443 row houses, classified into three categories, viz. A, B and C, with a total saleable area of 8,95,311 square feet. BHARAT INDUSTRIAL: ICRA Suspends B+ Rating on INR6.05cr Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B+ assigned for the INR3.70 crore long term fund based facility and a short term rating of [ICRA]A4 for the INR6.05 crore fund based and non fund based facility of Bharat Industrial Corporation. ICRA has also suspended assigned rating of [ICRA]B+/A4 for the INR0.25 crore non fund based facility of the company. 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. BIHAR RAFFIA: CRISIL Lowers Rating on INR118MM Term Loan to 'D' --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Bihar Raffia Industries Ltd to 'CRISIL D' from 'CRISIL C'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 200 CRISIL D (Downgraded from 'CRISIL C') Funded Interest 52.1 CRISIL D (Downgraded from Term Loan 'CRISIL C') Proposed Long Term 45.4 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL C') Term Loan 19.0 CRISIL D (Downgraded from 'CRISIL C') Working Capital 118.0 CRISIL D (Downgraded from Term Loan 'CRISIL C') The downgrade reflects delays by the company in payment of interest on its cash credit facility and term loans in August and September 2016. BRIL has large working capital requirement, and a weak financial risk profile because of a leveraged capital structure and subdued debt protection metrics. However, it benefits from its promoters' extensive experience in the packaging industry, and its established customer base. BRIL, incorporated in 1998, manufactures bulk packaging materials made of polypropylene and high-density poly ethylene (HDPE). The company has two units, at Jamshedpur in Jharkhand and at Satna in Madhya Pradesh, with combined capacity of 7500 tonne per annum. BRAZA TYRES: CRISIL Raises Rating on INR60MM Cash Loan to BB- ------------------------------------------------------------- CRISIL has upgraded its long term rating on the bank facilities of Braza Tyres Private Limited to 'CRISIL BB-/Stable' from 'CRISIL B+/Stable' and assigned its 'CRISIL A4+' to the short term bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Corporate Loan 12.9 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Term Loan 10.0 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Letter of Credit 10.0 CRISIL A4+ (Assigned) The upgrade reflects CRISIL's belief that BTPL's (part of Braza group) business risk profile will continue to improve with an increase in operating income. In fiscal 2016, operating income was more than CRISIL's expectation at INR634.5 million, which led to higher-than-expected net cash accrual of INR21 million. There has also been improvement in the operating margins which has resulted in more than expected interest coverage ratio and Net Cash accruals to Adjusted Debt. The rating reflects the extensive experience of its promoters in the tyre manufacturing industry and comfortable debt protection metrics and healthy return on capital employed (RoCE). This strength is partially offset by Braza Tyres's modest scale of operations and susceptibility to volatility in raw material prices which are linked to international crude prices. For arriving at its ratings, CRISIL has combined the business and financial risk profiles Braza Tyres Pvt Ltd and Cinq Micron Chem Pvt Ltd. This is because all these companies, together referred to as the Braza group, are in similar lines of business and have the same promoters. Furthermore, they have common dealers for marketing and distributing products, key raw materials are procured from the same set of suppliers and there is buying and selling between them. The promoters have indicated that the companies will support each other financially in case of exigency. Outlook: Stable CRISIL believes that BTPL will continue to benefit over the medium term from its promoters' extensive industry experience and its strong marketing network. The outlook may be revised to 'Positive' if BTPL reports a substantial increase in its scale of operations and maintains its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' in case of significantly low revenue and profitability, or considerable stretch in working capital requirements, or additional debt- funded capital expenditure, weakening the company's financial risk profile. BTPL was set up in 2006 by Mr. Achal Dev Sharma. The company manufactures tyres, tyre tubes, and precured tread rubber used in tyres. BTPL initially manufactured automobile tubes for two- wheelers, motorcycles, and cars. In 2009, the company commenced manufacturing tread rubber and tyres for various vehicles such as scooters, motorcycles, jeeps and light commercial vehicles, and tractors and trucks. Mr. Achal Sharma, his wife Ms. Nisha Sharma, and his brother Mr. Kapil Dev Sharma are BTPL's directors. CINQ MICRON: CRISIL Upgrades Rating on INR60MM Cash Loan to BB- --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Cinq Micron Chem Private Limited to 'CRISIL BB-/Stable from 'CRISIL B+/Stable' and assigned its 'CRISIL A4+' to the short term bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Corporate Loan 12.8 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Term Loan 9.7 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Letter of Credit 10.0 CRISIL A4+ (Assigned) The upgrade reflects CRISIL's belief that CMCPL's (part of Braza group) business risk profile will continue to improve with an increase in operating income. In fiscal 2016, operating income was more than CRISIL's expectation at INR634.5 million, which led to higher-than-expected net cash accrual of INR21 million. There has also been improvement in the operating margins which has resulted in more than expected interest coverage ratio and Net Cash accruals to Adjusted Debt. The rating reflects the extensive experience of its promoters in the tyre manufacturing industry, comfortable debt protection metrics, and healthy return on capital employed (RoCE). These strengths are partially offset by modest scale of operations and susceptibility to volatility in raw material prices which are linked to international crude prices. For arriving at its ratings, CRISIL has combined the business and financial risk profiles Braza Tyres Pvt Ltd and Cinq Micron Chem Pvt Ltd. This is because all these companies, together referred to as the Braza group, are in similar lines of business and have the same promoters. Furthermore, they have common dealers for marketing and distributing products, key raw materials are procured from the same set of suppliers and there is buying and selling between them. The promoters have indicated that the companies will support each other financially in case of exigency. Outlook: Stable CRISIL believes CMCPL will continue to benefit over the medium term from its promoters' extensive experience and strong marketing network. The outlook may be revised to 'Positive' in case of substantial scaling up of operations while maintaining profitability and capital structure. Conversely, the outlook may be revised to 'Negative' in case of significantly low revenue and profitability, or considerable stretch in working capital requirement, or additional, debt-funded capital expenditure, weakening the financial risk profile. Incorporated in 1994, CMCPL is a Himachal Pradesh-based company that is primarily engaged in the manufacturing of butyl rubber inner tubes, catering to the needs of automobiles, tractors and CV segment. The company was previously engaged in the manufacture of calcium carbonate till January, 2010. On account of ban on mining limestone, the company shifted to manufacture of tubes in March 2010. The operations of the company are being managed by Mr. Bharat Dhamiraja, who has over 2 decades of experience in the tyre business. The company has a plant based at Paonta Sahib, Himachal Pradesh. CRESCENT THERAPEUTICS: ICRA Suspends B+ Rating on INR8.6cr Loan --------------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to INR8.60 crore fund based facilities and [ICRA]A4 rating assigned to INR3.00 crore non fund based limits of Crescent Therapeutics Limited. ICRA has also suspended [ICRA]B+/[ICRA]A4 rating assigned to INR0.40 crore unallocated limits of CTL. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Crescent Therapeutics Limited is the manufacturing arm of the Crescent Group. CTL is into manufacturing of tablets, capsules, DC granules, pellets and nutraceuticals which are approved by regulatory authorities. The manufacturing location is at SEZ in Baddi, Himachal Pradesh. The company has commenced the production in October 2008. The plant is constructed with WHO-GMP standards and having GMP certificate. DEEPAK FASTENERS: CRISIL Cuts Rating on INR1.23BB Cash Loan to D ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Deepak Fasteners Ltd (part of Deepak Fasteners) to 'CRISIL D/CRISIL D' from 'CRISIL BBB-/Negative/CRISIL A3'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit@ 1230 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Cash Credit^ 390 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Cash Credit& 300 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Cash Credit$ 390 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Cash Credit# 390 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') External Commercial 1008.7 CRISIL D (Downgraded from Borrowings 'CRISIL BBB-/Negative') Foreign Bill 100 CRISIL D (Downgraded from Discounting** 'CRISIL A3') Letter of Credit% 500 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Letter of Credit^^ 200 CRISIL D (Downgraded from 'CRISIL A3') Letter of Credit$$ 150 CRISIL D (Downgraded from 'CRISIL A3') Letter of Credit&& 150 CRISIL D (Downgraded from 'CRISIL A3') Letter of Credit## 250 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') Term Loan 421.3 CRISIL D (Downgraded from 'CRISIL BBB-/Negative') ** Represents foreign outward bill negotiated under letter of credit (FOBNLC)/ foreign outward @ Includes a sub limit of INR650 million packaging credit and INR300 million of bill discounting ^ Includes a sub limit of INR390 million packaging credit and Rs.390 million of bill discounting & Includes a sub limit of INR300 million packaging credit $ Includes a sub limit of INR200 million packaging credit # Includes a sub limit of INR180 million packaging credit % Includes a sub limit of INR500 million buyer credit and Rs150 million of bank guarantee. Interchangeable from non-fund based to fund based limits to the extent of Rs. 200 million ^^ Includes a sub limit of INR200 million of buyer credit and Rs. 20 million of bank guarantee $$ Includes a sub limit of INR150 million buyer credit and INR45 million of bank guarantee && Includes a sublimit of Rs. 150 million buyer credit and Rs.100 million of bank guarantee ## Includes a sublimit of Rs. 250 million of buyer credit. Interchangeable from non-fund based to fund based limits to the extent of Rs. 50 million The downgrade reflects recent instances of delays by the company in meeting obligations on its fund-based and non-fund-based facilities, following deterioration in liquidity on account of disruption of business operations in the recent past because of floods at its large plant in Bhopal, Madhya Pradesh. Though operations at the plant are being stabilised, DFL's liquidity is expected to improve only gradually in the near term. In June 2016, CRISIL revised the outlook on DFL's long-term debt facilities to 'Negative' from 'Stable' because of decline in liquidity and large working capital requirement (reflected in gross current assets of over 400 days). In the quarter through September 2016, production at the Bhopal plant was affected for almost 4 weeks by floods. The plant was not operational for 4 months in fiscal 2016 as well due to floods. DFL's management subsequently undertook sizeable capital expenditure and took steps to limit impact of flooding, and is focused on stabilisation of operations to fulfil large orders. Loss of revenue, higher costs of recommissioning, and continuing large working capital requirement has impacted liquidity and ability to service its debt obligations in a timely manner. The promoter infused about INR210 million in the form of equity and unsecured loans into DFL in fiscal 2017, which is in line with CRISIL's expectation, to support the working capital needs for the large orders on hand, mainly from overseas customers. While CRISIL believes the healthy order book augurs well for business prospects, increase in capacity utilisation at the Bhopal plant and efficient working capital management will be critical for improvement in DFL's credit quality. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of DFL and its wholly owned subsidiaries: Deepak Fasteners (Shannon) Ltd, Deepak Fasteners Australia Pty Ltd, and Deepak Fasteners (UK) Ltd. All the entities, collectively referred to as Deepak Fasteners, are in the same business, and have significant operational and financial linkages. DFL has provided corporate guarantee for the debt of overseas subsidiaries. CRISIL has moderately integrated the business and financial risk profiles of Deepak Fasteners' associate company, Shree Ganesh Jewellers Ltd, which manufactures and trades in gold and diamond jewellery, as DFL has provided corporate guarantee for SGJL's debt and will extend support to SGJL, if required. DFL, incorporated in 1958 and promoted by Mr. Kailash Kalra, has consolidated finishing capacity of 70,000 tonne per annum (tpa) of fasteners at its facilities in Punjab, Himachal Pradesh, and Madhya Pradesh. In fiscal 2009, DFL acquired the Unbrako brand from Precision Castparts Corp, along with its intellectual property rights, manufacturing facilities in Ireland, and workforce and distribution network. In fiscal 2011, Banyan Tree Growth Capital LLC and DEG-Deutsche infused INR700 million into DFL in the form of zero-coupon compulsorily convertible bonds for a 13% equity stake (post conversion into equity). In fiscal 2014, DFL commissioned a plant, with finishing capacity of 28,500 tpa, near Bhopal. DFUK and DFA commenced commercial operations in fiscals 2008 and 2009, respectively, and are distribution arms. DFSL was set up in fiscal 2009 after DFL acquired the Unbrako fastener business from PCC, and has a manufacturing and research facility in Shannon, Ireland. CRISIL is awaiting Deepak Fasteners' audited financials for fiscal 2016 and the year-to-date performance for fiscal 2017. For fiscal 2015, Deepak Fasteners incurred net loss of INR47 million and had operating income of INR4.2 billion, against a profit after tax of INR204 million and operating income of INR3.7 billion for fiscal 2014. For the nine months ended December 31, 2015, profit before tax (PBT) was INR28.7 million and operating income was INR3.3 billion, on a provisional basis. DFL's standalone PBT was INR91.5 million and operating income was INR3.6 billion for fiscal 2016, on a provisional basis. GAURAV WORLDWIDE: ICRA Assigns 'B' Rating to INR50cr Cash Loan -------------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B and a short-term rating of [ICRA]A4 to the INR50.00 crore1 bank facilities of Gaurav Worldwide Trading Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund based limit- Cash credit 50.00 [ICRA]B Assigned Short term non fund based limit- Letter of Credit (50.00) [ICRA]A4 Assigned The ratings are constrained by GWTPL's Limited track record of operations and the limited revenue booked till October 31, 2016. ICRA also notes the low profitability as a result of limited value addition in the metal trading business. The company also witnesses intense competition because of its presence in the highly fragmented metal trading industry, given the low entry barriers which exert pressure on its profit margins. The revenue and profitability are also susceptible to Government regulations and foreign exchange fluctuations. However, the ratings favorably take into account the long experience of the promoter in metal trading and asset dismantling business. ICRA notes the opportunistic nature of the company's business and the revenue of the company may register a year on year (y-o-y) de-growth in FY2017 due to limited revenue till October 31, 2016. Gaurav Worldwide Trading Private Limited was established in 2004 with the objective of ship breaking, factory dismantling and trading in metals. It started its operations in FY2016, wherein it traded majorly in shredded metal scrap imported from the USA. Sales were mainly spread across the markets of Maharashtra and Gujarat. GWTPL has its registered office in Mumbai and its rented warehousing facility at Navi Mumbai. The company is managed by its promoter, Mr. Gaurav Jhaveri, along with his son, Mr. Utsav Jhaveri. Recent Results GWTPL recorded a profit before tax of INR0.45 crore on an operating income of INR32.64 crore for the year ending March 31, 2016. GLOBAL TECHNOLOGIES: ICRA Suspends B+/A4 Rating on INR7cr Loan -------------------------------------------------------------- ICRA has suspended ratings of [ICRA]B+/[ICRA]A4 assigned to the INR7.00 crore bank facilities of Global Technologies. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. HANUMAN AGRO: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Hanuman Agro Industries Pvt Ltd continue to reflect the company's weak financial risk profile because of small networth and weak debt protection metrics, and its small scale of operations. These weaknesses are partially offset by its promoters' extensive experience in the trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Letter of Credit 200 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes HAIPL will continue to benefit from the extensive industry experience of its promoters and its established relationships with customers. However, its scale of operations will remain small over the medium term. The outlook may be revised to 'Positive' if there is a significant increase in revenue while operating margin remains stable, leading to larger- than-expected net cash accrual. The outlook may be revised to 'Negative' if working capital requirement increases, leading to rise in debt, or if revenue and operating margin decline substantially, adversely affecting cash accrual. HAIPL, set up in 1991 by Mr. Balwant Rai, trades in plastic and petrochemical-related products, including ethylene-vinyl acetate, synthetic rubber, polyvinyl chloride resin, K-resin and Styrene Bituadmein Strye. Operations are managed by director Mr. Devik Garg. HEMANTH HOMES: CRISIL Suspends B+ Rating on INR59.5MM LT Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Hemanth Homes Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 59.5 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 40.5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by HHPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HHPL is yet to provide adequate information to enable CRISIL to assess HHPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 1998, HHPL is a Bengaluru-based residential real estate development company. Its operations are managed by its managing director, Mr. Hemanth Kumar. HERODEX POWER: CRISIL Assigns 'D' Rating to INR190MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Herodex Power Systems Private Limited. The ratings reflect a continuously overdrawn cash credit account. The default was on account of out of large working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 104.2 CRISIL D Letter of Credit 50.0 CRISIL D Bank Guarantee 145.0 CRISIL D Cash Credit 190.0 CRISIL D Moreover, the company has a modest scale of operations, and a below-average financial risk profile because of a small networth, high gearing, and weak debt protection metrics. However, it benefits from the extensive experience of its promoters in the Engineering Procurement Contract (EPC) business. HPSPL, established in August 1995 is promoted by Mr. Shashank Kalkar and Mr. Prashant Desai. The company provides products and services for the electricity transmission and distribution sector. It manufactures automatic power factor controller panels and offers various power systems-based EPC turnkey project solutions to the sector. Its manufacturing facility is at Nashik, Maharashtra. IENERGIZER LIMITED: Moody's Affirms Caa1 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service has affirmed iEnergizer Limited's Caa1 corporate family and senior secured bank credit facility ratings. At the same time, Moody's has changed the outlook on both ratings to stable from negative. RATINGS RATIONALE "The stable outlook reflects our expectation that iEnergizer will sustain its improved earnings performance, which will result in a wider headroom under its covenants," says Kaustubh Chaubal, a Moody's Vice President and Senior Analyst. For the 12 months ended September 30, 2016, iEnergizer reported EBITDA of USD34.3 million compared to USD25.5 million for the financial year ended March 31, 2015 (FY2015). The improved performance was driven by higher revenue from its real-time processing and back office services businesses, as well as the company's continuing cost savings initiatives. These improvements helped boost the company's EBITA margins to 22% from 16%, despite the otherwise modest revenue growth. As a result, the company's leverage improved to 2.58x in September 2016 versus the covenanted limit of 2.85x. As to the company's EBITDA/interest covenant of 3.5x, the actual ratio was a solid 4.6x, indicating a wide headroom. "Stability in revenues, improving earnings and reduced debt levels will drive a further improvement in iEnergizer's credit metrics, such that the covenant headroom will further widen," adds Chaubal, who is also the lead analyst for iEnergizer. Moody's points out that the company continues to generate consistent positive free cash flows, as it does not make dividend payments and has limited capital expenditure requirements due to the asset-light nature of its operations. The available cash flows are applied towards scheduled debt repayments of around USD3.4 million per quarter that iEnergizer has to make under the terms of its loan agreement. The change in outlook to stable also reflects the stability in the company's senior management following several departures in FY2015 and FY2016. In February 2016, the company's board re-designated its founder and former CEO, Mr. Anil Aggarwal, as CEO and executive director, filling the position that had been vacant for 14 months. It also appointed Mr. Richard Day as CFO, a position that had been vacant for 7 months. The CEO and CFO office positions continue to be held by Mr. Aggarwal and Mr. Day respectively. In Moody's view, continued stability in senior management will support the company's revenue and earnings growth and drive its improving trajectory. That said, Moody's believes the company remains exposed to key man risk due to the continued dependence on Mr. Aggarwal to generate new business. The stable outlook reflects Moody's expectation that iEnergizer will maintain its improved operating performance. Moody's also expects positive free cash flow generation and reduced debt levels to drive further improvements in leverage and covenant headroom. iEnergizer's credit metrics are strong for its current rating. Continued stability in its senior management team while the company further grows its earnings and the maintenance of a solid liquidity position will remain key for Moody's to consider a rating in the single-B category. Specifically, Moody's could upgrade the CFR if the company further improves its operating performance by securing new contracts, such that EBITDA remains above USD35 million on a sustained basis, and if it continues to generate positive free cash flow in excess of its scheduled debt maturities of around USD13.5 million a year. The ratings could be downgraded if the company (1) loses any existing contract and/or is unable to replace such contracts; (2) experiences a weakening operating performance such that its EBITDA falls below USD28-30 million; or (3) sees a decline in cash and cash equivalents from current levels. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. iEnergizer Limited is an international business process outsourcing (BPO) company, incorporated in Guernsey, and was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 14 September 2010. iEnergizer is primarily engaged in call center operations, BPO services, content delivery services and back office services (legacy operations). Following the acquisition of Aptara Inc. in 2012, for USD150 million, iEnergizer expanded its business services to the provision of content process outsourcing solutions, delivering a comprehensive offering for the transformation and management of content such as text, audio, video and graphic files. As of 31 March 2016, the company had more than 13,000 employees -- including subcontracted staff -- working from 11 delivery centers located in India, the US, UK, Mauritius, Australia and France. iEnergizer reported revenues totaling USD143 million in the 12 months ended September 30, 2016 and EBITDA of USD34 million. INTERNATIONAL MEGA: CRISIL Lowers Rating on INR749MM LT Loan to D ----------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of International Mega Food Park Ltd to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 749 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects delays in servicing term debt due to insufficient cash accrual on account of lower-than-expected ramp- up in operations. IMFPL also has a weak financial risk profile because of muted debt protection metrics, and working capital-intensive, and small scale of, operations. However, the company benefits from the extensive experience of its promoters in the food processing industry and diverse revenue profile. Incorporated in 2010 as a closely held public limited company and special-purpose vehicle, IMFPL has set up a mega food park under the ministry of food processing industries' Mega Food Parks' scheme at village Dabwala Kalan in Punjab. Total project cost of INR1364 million is being funded with term debt of INR564 million, promoters' contribution of INR300 million, and Government of India grant of INR500 million. Key promoters include International Fresh Farm Products Pvt Ltd, Narain Exim Corporation, and Citrus Estates. The project is expected to provide adequate infrastructure facilities for food processing along the entire value chain. Major revenue streams will be retailing and wholesaling of dairy and agricultural products, rentals from food processing and cold storage facilities, and selling power to Punjab State Electricity Board from its biomass power plant. Operations of the dairy, cold storage, and warehousing segments commenced in February 2014, while the biomass plant is expected to start operating in April 2015. JAI MAAKALI: ICRA Reaffirms 'D' Rating on INR45cr Cash Loan ----------------------------------------------------------- ICRA has reaffirmed the long-term rating assigned to the INR45.00 crore (enhanced from INR35.00 Crore) fund based facilities of Jai Maakali Fish Farms Private Limited at [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- LT-Cash Credit Facilities 45.00 [ICRA]D The rating downgrade factors in delays in debt servicing with cash credit limits overutilised beyond 30 days due to liquidity pressures arising from delays in payments by customers. The rating also take into consideration weak financial profile of the company characterised by high gearing of 5.18 times as on March 31, 2016 and weak coverage indicators with interest coverage ratio of1.30 times, NCA/Debt at 3% for FY2016. The company also faces intense competition and is exposed to the inherent risks in the sea-food industry like susceptibility to diseases, climatic change risks and government policies. The rating takes note of the experience of promoters in the sea food industry and the large scale of operations with fish farming spread across 2380 acres. Going forward, the ability of the company to manage their working capital requirements and regularly service their debt will remain a key rating sensitivity from credit perspective. Jai Maakali Fish Farms Private Limited is part of the Jai Maakali Group of companies based at Tanuku, West Godavari district. JMFFPL was incorporated in 2003 and is engaged in fish farming. The company is engaged in cultivation of fish such as Rohu and Katla in 2380 acres at Pothunuru and Dosapadu villages in West Godavari District (Andhra Pradesh). The annual production capacity is around 10000 tonnes. Recent Results According to the provisional financials for FY2016, the company reported a profit after tax of INR0.77 crore on an operating income of INR59.2 crore as against a profit after tax of INR0.59 crore on an operating income of INR50.3 crore in FY2015. JAYANTI BOARDS: ICRA Suspends B+ Rating on INR2.0cr LT Loan ----------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B+ to the INR2.00 crore long term fund based limits. ICRA has also suspended [ICRA]B+/[ICRA]A4 to the INR8.00 crore unallocated limits of Jayanti Boards 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. Incorporated in 1994, Jayanti Boards Limited is into the manufacturing of straw boards. JBL manufactures various types of straw boards like pasted straw boards and straw board reels. The final product is used in the fire cracker industry, note book industry, textile processing industry and core pipe industry. JBL has its manufacturing facility at Mandapaka village, Tanuku Mandal, Andhra Pradesh with an installed capacity of 9000MT per annum. KRIFOR INDUSTRIES: ICRA Reaffirms 'B' Rating on INR26.26cr Loan --------------------------------------------------------------- ICRA has re-affirmed the long-term rating of [ICRA]B as well as the short-term rating of [ICRA]A4 for the INR46.26 crore1 (earlier INR53.14 crore) fund based and non-fund based bank facilities of Krifor Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Term Loan 26.26 [ICRA]B; Re-affirmed Long-term-Cash Credit 20.00 [ICRA]B; Re-affirmed Short-term-Letter of Credit cum Buyers Credit (9.20) [ICRA]A4; Re-affirmed The rating re-affirmation continues to factor in KIPL's limited operational track record, continued weak financial risk profile as indicated by net loss during FY2016 and highly leveraged capital structure. In addition, stretched debtors and high inventory levels due to its limited availability, leads to a stretched liquidity position as indicated by NWC/OI of about 68% during FY2016 and almost full utilisation of working capital limits. The rating also factors in the vulnerability of the company's profitability to the cyclicality inherent in the real estate industry, which is KIPL's key end-user sector. The profitability is also exposed to the adverse fluctuations in bagasse prices - the key raw material, whose availability is subject to cyclicality in the sugar industry. The ratings are further constrained by the threat from the availability of substitute products. ICRA also notes the intensely competitive industry structure, characterised by a large number of organised as well as unorganised players in the field. However, the ratings positively factor in the favorable demand outlook of particle boards due to its eco-friendly and economical nature as compared to plywood. The ratings, moreover, favorably factor in the locational advantages of KIPL's proximity to raw material suppliers and major consumption centers, along with the steady ramp up of manufacturing activities during the initial stage of operations. ICRA expects the operations of the company to grow at a moderate pace in the near future, marked by the growing demand for particle boards due to its eco-friendly nature. However, KIPL's vulnerability in managing timely procurement of bagasse in the right quantity, while managing fluctuations in its prices, which is dependent upon agro-climatic conditions, will remain the key rating sensitivities. Furthermore, the company's ability to scale up operations amid competitive pressures and improve profit margins, remains some of the other key rating sensitivities in the near future. Krifor Industries Private Limited was incorporated in April 2012 with the objective of manufacturing particle boards from sugarcane bagasse. Manufacturing operations were initiated from March 2014. The company has an installed manufacturing capacity of ~14.85 lakh units per annum (4,070 units per day) for boards of an approximate size of 8ft. x 4ft. and ~17mm thickness. Mr. Sanjeev Dalmia, Mr. Mandeep Bajaj, Mr. Chetandas Khatri and Mr. Jugal Bhutra are the key management personnel of the company, who manage the overall operations of the company. KIPL has nine other operational group companies -- Gannayak Agency Private Limited, Ridhi Sidhi Organisors Private Limited, Prayagraj Dyeing & Printing Mills Private Limited, Armaan Industries Private Limited, Aastha Fashions Private Limited, K Fins Pumps Private Limited, Jai Mata Di Fashions Private Limited, Jai Mata Di Dyeing & Printing Mills Private Limited and Jai Mata Di Art & Creations Private Limited. Out of these nine, seven are associated with the textile industry. Recent Results The firm has achieved an operating profit of INR9.43 crore and a net loss of INR2.63 crore, on a turnover of INR53.91 crore during FY2016, as against an operating profit of INR9.35 crore and a net loss of INR4.93 crore, on a turnover of INR47.44 crore during FY2015. KSHITIJ KUMAR: ICRA Reaffirms B+ Rating on INR10cr Loan ------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B+ to the INR10.00-crore non-fund based bank facilities of Kshitij Kumar Choudhary. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-fund Based Facility 10.00 [ICRA]B+; Reaffirmed ICRA's rating is constrained by the firm's high operating leverage because of the fixed toll collection payable to the concessioning authority. Additionally, the revenues remain dependent on the traffic volumes and the collection efficiency. ICRA also takes note of the firm's partnership constitution, which exposes it to risks related to capital withdrawal, risk of dissolution etc. The rating further takes into account the deterioration in the capital structure primarily owing to the capital withdrawal, which resulted in a gearing of 2.59 times as on FY2016 as compared to 0.16 times as on FY2015. The rating is also constrained by the limited revenue visibility and the high concentration risk as the company executes one single big order for toll collection in the Sikar region of Rajasthan. The rating, however, derives comfort from the extensive experience of the promoters in the royalty and toll collection business in Rajasthan. This apart, the rating favorably factors in the steady execution of the current order book. The ability of the firm to secure new contracts, maintain revenue visibility and achieve healthy volumes will be the key rating sensitivity. KKC, incorporated in 2009, is a partnership concern promoted by Mr. Kshitij Kumar Choudhary. The firm is a royalty contractor for sand stone and khanda mining in the Sikar region of Rajasthan. Such contracts are awarded on competitive bidding by Directorate of Mines and Geology (DMG), Government of Rajasthan. Under these contracts, the firm collects royalties from the miners based on volumes extracted by the latter and in turn pays a fixed royalty amount to DMG as per the pre-fixed schedule. The firm also undertakes toll collection contract awarded by Rajasthan State Road Development and Construction Corporation Ltd, and it operates a contract for toll collection at Kotputlli - Sikar - Konchaman stretch. Recent Results The firm, on an operating income (OI) of INR50.21 crore, reported a net profit of INR2.71 crore in FY2016 as against an operating income (OI) of INR9.97 crore on which it reported a net profit of INR0.61 crore in FY2015. LAKSHMI COT-GIN: ICRA Reaffirms B+ Rating on INR22cr Loan --------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B+ to the INR22.00 crore cash credit facility of Lakshmi Cot-Gin Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 22.00 [ICRA]B+ reaffirmed The rating reaffirmation reflects the company's weak financial risk profile marked by low profitability, weak return indicators, unhealthy capital structure and weak debt-coverage indicators. The rating is further constrained by the vulnerability of the company's profitability to agro-climatic risks, the inherently low value-adding ginning business, which also has high fragmentation and competition as there are numerous small and unorganized players in the industry. The rating, however, continue to draw comfort from the logistical advantage enjoyed by the company by virtue of its location in the cotton-producing region, giving it easy access to quality raw cotton. Established in 2006 as a closely held private limited company, Lakshmi Cot-Gin Private Limited is involved in the ginning and pressing of raw cotton. The company's manufacturing facility is located at Gondal in Rajkot district of Gujarat and is equipped with 40 ginning machines and 1 fully automated pressing machine, with total processing capacity of 385 bales3 per day (MTPD). The company also trades in raw cotton, cotton bales and cotton seeds. The company's promoters have extensive experience in the cotton industry by virtue of their association with other entities involved in the similar line of business. Recent Results During FY2016, LCPL reported an operating income of INR116.40 crore and profit after tax of INR0.09 crore as against the operating income of INR137.87 crore and profit after tax of INR0.18 crore during FY2015. LAKSHMI GANAPATHI: ICRA Suspends B+ Rating on INR4.75cr Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B+ assigned to INR4.75 crore cash credit, INR2.20 crore term loan, INR2.55 unallocated limits and the short term rating of [ICRA]A4 assigned to INR0.50 fund based limits of Lakshmi Ganapathi Rice Industries. 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. LAKSHMIDURGA TEXTILES: ICRA Reaffirms B+ Rating on INR7.5cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the long-term rating for INR7.50 crore cash credit limits of Lakshmidurga Textiles Private Limited at [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 7.50 [ICRA]B+; Re-affirmed The rating reaffirmation takes into account the weak financial profile of the company characterized by low profitability & high gearing of 1.33 times as on March 31, 2016. The rating considers highly fragmented and competitive nature of the industry limiting the ability of the company to pass on the hike in input costs. The ratings are further constrained by the susceptibility of revenues and margins to raw material (RCN) prices, which exhibit high volatility, and the significant dependence on agro-climatic conditions and global demand-supply scenario. The rating, however, draws comfort from the long standing experience of the promoters in the field of agro-based business and favorably factors in the presence of the company in the major cotton growing region of Andhra Pradesh (Guntur Dist.) resulting in better availability of raw cotton. Going forward, the company's ability to improve its profitability and effective management of working capital would be the key rating sensitivities. LDTPL was incorporated as a private limited company in the year 2010. After procuring raw cotton (Kapas) from the market, the company processes it and is involved in the ginning and pressing of Kapas to produce bales of cotton lint and seeds. It is engaged in the ginning and pressing of raw cotton, oil extraction and trading of cotton lint seed & maize. The company is located in Chillakamari Village of Nalgonda District. Recent Result According to audited FY2016 results, the company recorded an operating income of INR41.08 crore with a net profit of INR0.31 crore. As per audited FY2015 numbers, the company recorded an operating income of INR39.97 crore with a net profit of INR0.48 crore. MADRAS FERTILIZERS: ICRA Assigns 'C' Rating to INR191.4cr Loan -------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]C to the INR194.24 crore fund based bank facilities of Madras Fertilizers Limited ICRA has also assigned a short term rating of [ICRA]A4 to the INR330.0 crore non fund based bank facilities of MFL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term: Fund based facilities 191.40 [ICRA]C; assigned Long term: Proposed fund based facilities 2.84 [ICRA]C; assigned Short term: Non fund based facilities 330.00 [ICRA]A4; assigned The assigned ratings reflect the weak financial profile of the company with large net losses in the recent years, substantially negative net worth position and continuing default on the repayment of the Government of India loans drawn down for the factory revamp project. Owing to the weak financial profile and inadequate cash flows, the company has ceased to service the interest and principal on the Government of India loans drawn for the revamp project initiated in late 1990s. However, as part of the BIFR proposal, the management expects waiver of the GoI loan repayments/conversion to equity which could substantially improve the capital structure of the entity. MFL's plant is of old vintage having been operational for close to 50 years and is one among the only three urea plants in the country still operating with naphtha as feedstock. It falls under the pre-1992 naphtha group and the existing NPS-III mandated liquid fuel-based players like MFL to switch over to gas feedstock. MFL has undertaken the conversion project and incurred most of the capex, but it could not switch over due to lack of gas availability. The GoI had been extending the deadline for such units under Modified NPS-III on a provisional basis for conversion to gas. However, during FY2015 and FY2016, the company had to undertake shutdowns multiple times as the GoI policy continuity was uncertain and did not extend the policy for intermittent period as well. Finally in June 2015, GoI approved the continuation of the production of urea using naphtha as feedstock, till availability of gas. However, subsidy would be paid as per the cost of production based on naphtha or R-LNG, whichever is lower, which leads to high variability in the profits from the urea division, until gas supply is provided to MFL. The ratings are constrained by the impact of regulatory policy changes and agro-climatic conditions on the company's profitability; and the sensitivity of cash flows to subsidy budgeting and disbursement by GoI. The ratings also consider the high energy consumption levels witnessed in the recent past owing to the vintage of the plant and usage of naphtha as fuel; inability to maintain the energy consumption levels within the Govt mandated limits might result in under-recoveries and impact the profitability. The ratings also consider the lower production of phosphatic fertilizers in the past few years owing to unavailability of funding limits to import key raw materials; these non-urea fertilizers were the key drivers of profitability in the past. The ratings also factor in the long shutdowns witnessed in the last financial year following the Government's decision to shut down urea plants which haven't completed gas conversion and also due to the floods in Chennai during the month of December 2015; these shutdowns impacted the capacity utilisation and had resulted in large losses during the year. The ratings further take into account the GoI's order mandating conversion to gas by FY 2018 and associated reduced energy consumption levels of 6.5 Gcal/MT; MFL has incurred most of the capital expenditure requisite for gas conversion, however gas from the proximate R- LNG terminal in Ennore is expected only post 2018 pending commissioning of the terminal. These rating concerns are offset to an extent by the strong sponsor profile of MFL with Govt of India holding a 59.5% stake and NaftIran (NIOC) holding 25.8%. The ratings also factor in the established market position of the company as one of the largest urea manufacturers in South India with reputed brands, wide dealer network and a leading market share in Tamil Nadu. The company also has logistical advantages being present in the vicinity of Chennai Petrochemical Corporation Limited's (CPCL) refinery, from where naphtha is being sourced, and Ennore port from where R-LNG will be sourced. Madras Fertilizers Limited was incorporated on December 8, 1966 as a joint venture between GOI and AMOCO India incorporated of U.S.A (AMOCO) in accordance with the Fertilizer Formation Agreement executed on 14.5.1966 with equity contributions of 51% and 49% respectively. National Iranian Oil Company, an undertaking of Government of Iran, acquired part of AMOCO's shareholding and with the company going public in 1997 the current shareholding pattern is as follows: Government of India -- 59.5%; NIOC -- 25.8%; Public -- 14.7%. MFL is engaged in the manufacture of Ammonia, Urea, Complex Fertilizers and Biofertilizers. MFL has its plant facilities and head quarters located on 329 acres of freehold land at Manali, about 20 km north of Chennai city. MAHESWARI FERTILIZERS: CRISIL Reaffirms B Rating on INR50MM Loan ---------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Maheswari Fertilizers continues to reflect the firm's modest scale of operations and large working capital requirement resulting in weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable (Reaffirmed) The rating also factors susceptibility of its revenue and profitability to changes in government policy and to erratic monsoon and moderate financial risk profile because of comfortable gearing and moderate debt protection metrics albeit constrained by modest net worth. These weaknesses are partially offset by its promoters' extensive experience in the fertilizer industry. Outlook: Stable CRISIL believes MF will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a significant increase in revenue and profitability, leading to a better financial risk profile. The outlook may be revised to 'Negative' if revenue or profitability declines, or if working capital cycle lengthens considerably, or if the firm undertakes larger-than-expected, debt-funded capital expenditure, weakening its financial risk profile. MF, a partnership firm set up in September 2009, manufactures nitrogen-phosphorous-potassium (NPK)-based fertilizers. The firm is promoted by Mr V Rami Reddy and his associates, and its manufacturing facility is in Kadapa, Andhra Pradesh. MANASA QUALITY: CRISIL Reaffirms B+ Rating on INR450MM Pack Loan ---------------------------------------------------------------- CRISIL's rating on long-term bank facilities of Manasa Quality Enterprises Limited continues to reflect a below-average financial risk profile because of weak debt protection metrics, and susceptibility to any adverse impact of regulatory changes and to intense competition in the agricultural commodities trading industry. These rating weaknesses are partially offset by the extensive industry experience of the promoters and a moderate scale of operations. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing Credit 450 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 30 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes MQEL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of higher-than-expected revenue and profitability, leading to a better financial risk profile. The outlook may be revised to 'Negative' in case of any large debt- funded expansions, a substantial decline in revenue and profitability, or a stretched working capital cycle, leading to weakening of the financial risk profile. MQEL was incorporated in 2012, promoted by Mr D Veerabhadra Reddy and his family. The company processes rice, maize, and broken rice. MANGALDEEP COTTON: ICRA Reaffirms 'B' Rating on INR5.0cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B to the INR5.00 crore1 cash credit facility, INR0.91 crore term loan facility and INR0.53 crore of unallocated bank limits of Mangaldeep Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.00 [ICRA]B Reaffirmed Term Loan 0.91 [ICRA]B Reaffirmed Unallocated 0.53 [ICRA]B Reaffirmed The rating reaffirmation factors in the small scale of operations and weak financial profile of Mangaldeep Cotton Industries, characterised by decline in scale of operations, weak coverage indicators and high inventory holding as on FY2016 end. The rating also continues to take into account the commoditised nature of products and the vulnerability of the firm's profitability to adverse movements in cotton price, which in turn is subject to seasonality and crop harvest. The firm's operations are exposed to regulations governing the industry such as restrictions on cotton exports and minimum support price (MSP). ICRA also notes the highly fragmented nature of the industry, due to a large number of manufacturers, which coupled with low-entry barriers, has led to high competition. Furthermore, the rating considers the potential adverse impact on net worth and gearing levels in case of any substantial withdrawal from capital accounts given its constitution as a partnership firm. The rating, however, continues to derive comfort from the long experience of its promoters in the cotton industry and the proximity of the firm's manufacturing unit to raw materials, easing procurement. In ICRA's view, the ability of the firm to manage the impact of raw material price fluctuations on its profitability in a highly competitive business environment and improve its capital structure by managing working capital requirements will remain the key rating sensitivities. Established in May 2013 as a partnership firm, Mangaldeep Cotton Industries (MCI) is involved in the business of ginning and pressing of raw cotton to produce cotton bales and cotton seeds. Its manufacturing facility, located at Jabalpur in Gujarat, commenced commercial production in December 2013. The firm is equipped with 24 ginning machines and 1 pressing machine with an installed capacity of pressing 12,000 MT of raw cotton per annum. The promoters of the firm have extensive experience in the cotton industry. Recent Results During FY2016, MCI reported an operating income of INR20.01 crore and profit after tax of INR0.01 crore as against an operating income of INR28.14 crore and profit after tax of INR-0.31 crore in FY2015. MEGATRONIC POWER: ICRA Suspends B- Rating on INR7.11cr Loan ----------------------------------------------------------- ICRA has suspended [ICRA]B- rating assigned to INR7.11 crore fund based facilities and [ICRA]A4 rating assigned to INR1.50 crore non fund based limits of Megatronic Power & Infrastructure Private Limited. ICRA has also suspended [ICRA]B-/[ICRA]A4 rating assigned to INR0.39 crore unallocated limits of MPIPL. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Megatronic Power & Infrastructure Private Limited was incorporated in 2011 and started its operations from June, 2013 onwards. The company is promoted by Mr. P. Muralinath Reddy & Mrs. P. Vijaya Reddy and its manufacturing unit is located in Mahaboobnagar, Telangana. The company is involved in the manufacturing of cables for various usages such as telecom, electricity, railways, etc. NAKSHATRA UPSCALE: CRISIL Suspends B+ Rating on INR200MM LT Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Nakshatra Upscale Estates Projects Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 200 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by NUEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NUEPL is yet to provide adequate information to enable CRISIL to assess NUEPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2011, NUEPL is a Bengaluru-based residential real estate developer; Mr. Manjunath Naidu, NEUPL's director, manages its operations. The company is currently developing a project in North Bengaluru, named Nakshatra Celestia, to be completed by December 2015. The company plans to develop a multistoried building project, over the medium term. NIRMALA INFRA: ICRA Suspends C+ Rating on INR8.3cr Loan ------------------------------------------------------- ICRA has suspended [ICRA]C+ rating assigned to INR6.07 crore fund based facilities and [ICRA]A4 rating assigned to INR8.30 crore non fund based limits of Nirmala Infra Projects India Private Limited. ICRA has also suspended [ICRA]C+/[ICRA]A4 rating assigned to INR0.63 crore unallocated limits of NIPIPL. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Nirmala Infra Projects India Private Limited was incorporated in November 2008 in Hyderabad by Mr. Ch. Narasimha Reddy and family. Earlier it was operating as a partnership firm named Sri Sairam Excavators & Loaders for about 7-8 years. The company executes projects for construction of underground drainage and sewerage systems for companies such as Ramky Infrastructure Limited, Prathibha Industries Limited, APR Projects Private Limited, etc. PANSARI STEELS: ICRA Suspends 'B' Rating on INR8cr Loan ------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to the INR8.00 crore fund based limits of Pansari Steels Private Limited. ICRA has also suspended the short term rating of [ICRA]A4 assigned to the INR6.00 crore inter-changeable limits of the company. The suspension follows ICRA's inability to carry out rating surveillance in the absence of requisite information from the company. PATNAIK STEELS: CRISIL Ups Rating on INR671.1MM Cash Loan to 'C' ---------------------------------------------------------------- CRISIL has upgraded its ratings on the bank loan facilities of Patnaik Steels and Alloys Limited to 'CRISIL C/CRISIL A4' from 'CRISIL D/CRISIL D'. The upgrade reflects timely servicing of debt from June 2016. Furthermore, liquidity profile of the company has improved aided by higher cash accrual, moderate working capital intensive operations and bank limit utilisation. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 27.5 CRISIL A4 (Upgraded from 'CRISIL D') Cash Credit 300 CRISIL C (Upgraded from 'CRISIL D') Proposed Fund- 388.9 CRISIL C (Upgraded from Based Bank Limits 'CRISIL D') Term Loan 671.1 CRISIL C (Upgraded from 'CRISIL D') The ratings reflect susceptibility of operations to cyclicality in the steel industry, and weak financial risk profile because of high gearing and below-average debt protection metrics. These rating weaknesses are partially offset by moderately integrated operations and extensive experience of the promoters in the steel industry. PSAL was set up in 2003 as a private limited company, Patnaik Steels and Alloys Pvt Ltd, by Mr. Tara Ranjan Patnaik, Mr. Jitendra Nath Patnaik, and Mr. Prasanta Kumar Mohanty. It was reconstituted as a public limited company. The company manufactures sponge iron and billets, in addition to generating power. Its manufacturing facility is in Keonjhar, Odisha. PEKON ELECTRONICS: CRISIL Suspends B+ Rating on INR70MM Bank Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Pekon Electronics Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 Cash Credit 40 CRISIL B+/Stable Letter of Credit 100 CRISIL A4 Proposed Fund-Based Bank Limits 70 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by PEL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PEL is yet to provide adequate information to enable CRISIL to assess PEL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. PEL was incorporated in 1985 as a public limited company (closely held). The company, promoted by Mr. Purshottam Bhagchandka, Mr. Dhiraj Bhagchandka, and Mr. Suresh Kumar Jalani, trades plastic granules and import licenses, cotton fabrics. PREMSONS SUPER: CRISIL Suspends B+ Rating on INR65MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Premsons Super Steel Pvt. Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B+/Stable Cash Term Loan 35 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by PSS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PSS is yet to provide adequate information to enable CRISIL to assess PSS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Sonipat (Haryana)-based PSS manufactures steel pipes, tubes and utensils. The company was acquired by Mr. Sanjeev Kapoor in 2014. RAVI METALLICS: CRISIL Suspends B- Rating on INR80MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Ravi Metallics Limited (RML). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B-/Stable Term Loan 7 CRISIL B-/Stable Working Capital Term Loan 28 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by RML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RML is yet to provide adequate information to enable CRISIL to assess RML's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2004 as limited company, RML trades iron and steel products. Apart from this, the company also owns a mall in Rourkela (Odisha). The company is promoted by three brothers - Mr. Manoj Kumar, Mr. Ravi Kumar and Mr. Kailash Kumar; who also manage the day-to-day operation of the company. RAYANI SPINTEX: ICRA Reaffirms 'B' Rating on INR19.4cr LT Loan -------------------------------------------------------------- ICRA has reaffirmed the long-term rating at [ICRA]B to the INR19.40 crore (revised from INR15.13 crore) fund based limits, INR0.60 crore (revised from INR0.50 crore) non-fund based limits and INR16.00 crore (revised from INR20.37 crore) unallocated limits of Rayani Spintex Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 19.40 [ICRA]B/reaffirmed Long Term Non- Fund Based Limits 0.60 [ICRA]B/reaffirmed Long Term Unallocated Limits 16.00 [ICRA]B / reaffirmed The rating reaffirmation factors in small scale of operations of the company in the highly fragmented and competitive spinning industry which restricts the ability of the company to pass on hike in input costs. The rating also notes that the operating margins declined during FY2016 due to higher trading sales and lower realizations. The rating is further constrained by weak financial profile of the company as reflected from high gearing of 2.81 times as on March 31, 2016 and moderate debt coverage indicators as indicated by interest coverage of 2.62 times, and Total Debt/OPBDITA at 5.46 times during FY2016; moreover, debt funded capex plans could impact the coverage indicators further in the near term. The rating also takes into account high customer concentration with top 5 customers contributing 70% of total sales during FY2016. The ratings however, positively factor in the long track record and active involvement of promoters in the spinning industry and favorable location in Guntur district of Andhra Pradesh providing easy access to raw material and savings on logistics cost. ICRA also notes healthy growth in revenues at a CAGR of 12% during the last 4 years and 22% growth in volumes during FY2016 on account of capacity expansion. Going forward, ability of the company to increase its scale of operations, profitability and coverage indicators with effective management of working capital will be the key rating sensitivities. Rayani Spintex Private Limited was established by Mr. Rayani Venkateswarlu, Mr. Borra Uma Maheshwara Rao and Mr. Unnava Subba Rao in 2007 and is based in Guntur, Andhra Pradesh. RSPL has commissioned the cotton spinning mill of 11,520 spindles in November'2011 and further increased to 14,400 spindles in May 2015. The company caters to domestic as well as international markets and is largely into manufacturing of 32s to 40s counts of cotton yarn. Recent Results As per audited financials for FY2016, RSPL reported an operating income of INR50.87 crore with profit after tax of INR1.11 crore as against INR39.05 crore of operating income with profit after tax of INR0.93 crore during FY2015. SHANTI DEVELOPERS: CRISIL Suspends 'B' Rating on INR50MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Shanti Developers - Ahmedabad. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 20 CRISIL B/Stable Term Loan 50 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SD with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SD is yet to provide adequate information to enable CRISIL to assess SD's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SD, established in 2014, is setting up a residential township, Shantideep, in Ahmedabad (Gujarat). The firm is a part of the Shanti group that has more than 25 years of experience in residential and commercial development. The group generally forms a new special purpose vehicle or partnership firm for each of its projects. The main partners of SD are Mr. Bhagubhai Patel, Mr. Deepakbhai Patel, and Mr. Hashmukhbhai Patel. SHARDA COTTON: CRISIL Suspends B+ Rating on INR165.3MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Sharda Cotton Factory. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 165.3 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SCF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCF is yet to provide adequate information to enable CRISIL to assess SCF's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SCF was set up as a partnership firm in 2007. It gins and presses cotton into bales, and extracts cotton seed oil. The firm is managed by Mr. Mahesh Sharda and his brother Mr. Pankaj Sharda. SHIV SHAKTI: CRISIL Lowers Rating on INR327.5MM Loan to 'D' ----------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Shiv Shakti Rice Mills (Partnership) [SSRM] to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 327.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long Term 7.5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Working Capital 200.0 CRISIL D (Downgraded from Demand Loan 'CRISIL B/Stable') The downgrade reflects instances of delay in servicing debt. The delays were driven by stretched liquidity because of large working capital requirement. The firm has a modest scale of operations in the fragmented rice industry, a below-average financial risk profile because of a high total outside liabilities to tangible networth ratio and weak debt protection metrics, and large working capital requirement. However, it benefits from the extensive industry experience of its promoters. SSRM was set up as a sole proprietorship firm by Mr Ashwani Kumar in 1999. In 2009, with Mr Hari Ram Bansal and Mr Sweety Singla also joining in, this firm was reconstituted as a partnership concern. The firm processes basmati and non-basmati rice, and its by-products. It is based in Lehragaga, Punjab. SHRI KRISHNA: ICRA Suspends B+ Rating on INR13cr Fund Based Loan ---------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B+ assigned to the INR13.00 crore fund based limits of Shri Krishna Steelage Private Limited. ICRA has also suspended the short term rating of [ICRA]A4 assigned to the INR4.00 crore non-fund based limits of the company. The suspension follows ICRA's inability to carry out rating surveillance in the absence of requisite information from the company. SIDDHARTH PROPERTIES: CRISIL Suspends 'C' Rating on INR430MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Siddharth Properties. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 290 CRISIL C Term Loan 430 CRISIL C The suspension of ratings is on account of non-cooperation by SP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SP is yet to provide adequate information to enable CRISIL to assess SP's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SP was incorporated in 1999 and is part of the Pune (Maharashtra)-based Saarrathi group. The group was started by Mr. Abhijeet Shende, Mr. Nilesh Shende, Mr. Swapnil Shende, and Mr. Yogesh Shende. It has two windmills, one each in Satara (Maharashtra) and Jodhpur (Rajasthan), with a capacity of 1.25 megawatts each. SIDDHI PROPERTY: CRISIL Suspends 'D' Rating on INR130MM Term Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Siddhi Property Developers Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 130 CRISIL D The suspension of ratings is on account of non-cooperation by SPDPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPDPL is yet to provide adequate information to enable CRISIL to assess SPDPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SPDPL was incorporated in 1993, promoted by Mr. Kapil Sharma and Mr. Rajdaksh Sharma. It has rented out units in a commercial complex, Lake City Mall, in Thane. SINGLA RICE: ICRA Reaffirms 'B' Rating on INR7.5cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed its long term rating at [ICRA]B on the INR7.50 crore fund based bank facilities of Singla Rice Oil & General Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund Based Limits 7.50 [ICRA]B; reaffirmed The rating continues to be constrained by the highly competitive nature of the rice milling industry, along with the vulnerability of the firm's profitability to fluctuations in raw material prices, which has resulted in thin profit margins. The rating also notes the fluctuation in the operating income of SRGM in the past six years, on account of change in basmati rice realizations and volumes. The high gearing of the firm, arising out of substantial debt funding of working capital requirements, coupled with low profitability, has resulted in the firm's weak coverage indicators. Further, the rating continues to factor in agro climatic risks, which can impact the availability of the basic raw material. However this risk is partially offset by the proximity of the mill to major rice growing areas which results in easy availability of paddy. The rating also favorably takes into account the extensive experience of the promoters in the rice industry. Going forward, the firm's ability to register revenue growth, and bring about a sustained improvement in its coverage indicators will be the key rating sensitivities. SRGM was established in 1985 as a partnership firm with Mr. Manoj Kumar, Mr. Dharmpal, Ms. Vimla Devi and Ms. Anita Rani as partners in equal ratio. The firm undertakes processing and trading of rice (Basmati and Non- Basmati) in the domestic market. It also performs custom milling operations for the state government of Haryana. The manufacturing unit of the firm is located in Nissing, Haryana with a milling capacity of 3 tonnes per hour of paddy. Recent Results SRGM reported a net profit of INR0.03 crore on an operating income of INR41.29 crore for FY2016, as against a net profit of INR0.03 crore on an operating income of INR31.45 crore for the previous year. SRI BALMUKUND: CRISIL Suspends B+ Rating on INR70MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Balmukund Polypack Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 Cash Credit 70 CRISIL B+/Stable Letter of Credit 20 CRISIL A4 Proposed Long Term Bank Loan Facility 13.2 CRISIL B+/Stable Term Loan 46.3 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SBBPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SBBPL is yet to provide adequate information to enable CRISIL to assess SBBPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SBBPL, incorporated in December 2007, manufactures HDPE and PP fabrics and bags. Its facility in the industrial area of Tendua, Raipur (Chhattisgarh) has a capacity of 9600 tonnes per annum. It manufactures bags for cement, fertiliser, petrochemicals, leno, sugar, tea, food grain, and other commodities. SRI JYOTI: ICRA Upgrades Rating on INR40.67cr Loan to 'B-' ---------------------------------------------------------- ICRA has upgraded the long term rating assigned to the INR40.67 crore1 term loans and INR6.50 crore cash credit limits of Sri Jyoti Renewable Energy Private Limited from [ICRA]D to [ICRA]B-. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 40.67 [ICRA]B- Upgraded from [ICRA]D Cash Credit 6.50 [ICRA]B- Upgraded from [ICRA]D The rating upgrade factors in timely debt servicing of SJREPL in the last six months following improvement in PLF levels to 82% in FY2016 from 23% in FY2015 due to reduced plant downtime and higher availability of raw material coupled with favorable weather conditions and improved liquidity position of the company with timely receipt of payments from Haryana Power Purchase Centre (HPPC). Further, ICRA also notes the prepayment of term loan obligations with the infusion of funds by promoters; and long term Power Purchase Agreement with HPPC for entire generation capacity of 9.50 MW for 20 years. The rating is, however, constrained by weak operational performance in FY2017 with PLF levels dropping to 38% in 7MFY2017 due to adverse weather conditions; vulnerability of profits to volatility in raw material prices and exposure of revenues to counter party credit risk associated with Haryana state DISCOMs. Further any adverse variations in weather conditions would affect the availability of raw material thus impacting the PLF levels as witnessed in FY2017. Going forward, the ability of the company to improve PLF levels and generation of sufficient cash accruals to service the debt repayment obligations will remain key rating sensitivity from credit perspective. Sri Jyoti Renewable Energy Private Limited (SJREPL), incorporated in the year 2008, operates a 9.5 MW biomass based power plant. The power plant is located in the Bhiwani District, Haryana. The plant uses cotton stalk, mustard stalk, Gaur husk and rice stalk from regions of bhiwani district as fuel to fire the boiler. The power generated from the biomass plant is evacuated to the 132 kV substation which is two kilometers from the project site. The power plant commenced operations in April 2014. The O&M for the power plant is undertaken in-house by SJREPL. The power generated from entire contracted capacity of 9.5 MW is being sold to Haryana Power Purchase Centre (HPPC) which is purchasing on behalf of state DISCOMs i.e Uttar Haryana Bijli Vitran Nigam & Dakshin Haryana Bijli Vitran Nigam. The company has a 20 year Power Purchase Agreement (PPA) with HPPC. The applicable tariff would be rate decided and amended by HERC from time to time and current tariff is 7.70 per unit. Recent Results In FY2016, SJREPL has reported an operating income of INR51.00 crore with net profit of INR1.53 crore as against an operating income of INR14.16 crore with net loss of INR0.53 crore in FY2015. SRI LAKSHMIKANTHA: ICRA Suspends 'B' Rating on INR15cr Loan ----------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to INR15.00 crore cash credit and the ratings of [ICRA]B/A4 assigned to INR2.25 unallocated limits of Sri Lakshmikantha Enterprise 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 SRI VENKATRAM: ICRA Suspends 'D' Rating on INR23cr Loan ------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA]D outstanding on INR2.14 term loan facilities, INR23.00 crore fund based facilities, the INR0.75 crore non-fund based facilities and the INR7.78 crore proposed facilities of Sri Venkatram Spinners Private Limited and short term rating of [ICRA]D outstanding on the the INR7.00 crore non-fund based facilities of SVSPL. ICRA has also suspended the long-term /short-term rating of [ICRA]D/[ICRA]D outstanding on INR3.50 crore long-term/short-term interchangeable non-fund based facilities (sub-limit) of SVSPL. The suspension follows ICRA's inability to carry out a rating surveillance due to non cooperation from the company. SOBANA OFFSET: CRISIL Suspends 'D' Rating on INR33.5MM Term Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of The Sobana Offset Printers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6 CRISIL D Bill Discounting 0.5 CRISIL D Overdraft Facility 6 CRISIL D Proposed Long Term Bank Loan Facility 24 CRISIL D Term Loan 33.5 CRISIL D The suspension of ratings is on account of non-cooperation by TSOP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TSOP is yet to provide adequate information to enable CRISIL to assess TSOP's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Set up in 1972 as a partnership firm, TSOP prints textbooks and other reading materials for the Karnataka and Tamil Nadu state textbook associations. The firm has its printing facilities in Bengaluru. SUMANJALI PARBOILED: ICRA Suspends B+ Rating on INR8.35cr Loan -------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B+ assigned to the INR8.35 crore fund based facilities and short-term rating of [ICRA]A4 assigned to INR1.50 crore fund based and non fund based limits of Sumanjali Parboiled Private Limited. ICRA has also suspended the long term and short term ratings of [ICRA]B+/[ICRA]A4 to INR0.15 crore unallocated limits of SPPL. 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. Incorporated as a private limited company in 1998, Sumanjali Parboiled Private Limited is engaged in milling of paddy for the production of raw and boiled rice. SPPL's plant is located in the Nalgonda district of Telangana. The total installed capacity of the plant was increased to 6 tons per hour in FY2014 from 3 tons per hour in FY2013. VIJAY STEELS: CRISIL Suspends 'D' Rating on INR45MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Vijay Steels. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45.0 CRISIL D Proposed Long Term Bank Loan Facility 8.1 CRISIL D Standby Line of Credit 2.2 CRISIL D Term Loan 9.7 CRISIL D The suspension of ratings is on account of non-cooperation by VS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VS is yet to provide adequate information to enable CRISIL to assess VS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Set up in 1983-84 (refers to financial year, April 1 to March 31), VS manufactures mild steel angles, flats, squares, and rounds. Currently, the firm is owned by three partners: Mrs. Sheela Gupta, Mr. Murari Lal Gupta, and Mr. Chintan Patel and is based out of Bhavnagar, Gujarat. VIJAYA LAKSHMI: ICRA Suspends 'B' Rating on INR9.0cr Loan --------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to INR9.00 crore fund based facilities of Vijaya Lakshmi R & B Rice Trading Company. ICRA has also suspended [ICRA]B rating assigned to INR1.00 crore unallocated limits of VLRBRTC. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the firm. Established in the year 2010 as a partnership firm, Vijaya Lakshmi R & B Rice Trading Company is engaged in the milling of paddy and produces raw & boiled rice. The rice mill is located in Nellore district, Andhra Pradesh. The firm produces 100% sortex rice with about 97% being boiled variety and about 3% being raw variety. The installed production capacity of the rice mill is 12 tons per hour. WAVE HOSPITALITY: CRISIL Hikes Rating on INR1.40BB Loan to BB- -------------------------------------------------------------- CRISIL has upgraded its long-term rating on bank facility of Wave Hospitality Pvt Ltd to 'CRISIL BB-/Stable' from 'CRISIL B+/Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 1,400 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') The rating upgrade reflects CRISIL's expectation of sustained improvement in the business risk profile over the medium term. Operating income has grown by 40% to INR727 million in fiscal 2016 (vis-a-vis INR518 million in fiscal 2015) on the back of increased occupancy (over 85% in fiscal 2016). Operating margin also improved to 31.6% in fiscal 2016 (21% in fiscal 2015), owing to better control over cost and expenses, in the second year of operation. Operating income is likely to grow further by 10% over the medium term, while the margin may sustain at current levels. Moreover, the sanctioned limit has been refinanced by Yes Bank, at a lower rate of interest (in comparison to Indian Overseas Bank earlier) with effect from April 2016. This is expected to reduce the interest cost as the interest rate offered by the Yes Bank is comparatively less than previous bank. Hence, the interest coverage ratio is expected to improve to 1.5 times in fiscal 2017, from 0.8 time in fiscal 2016. The rating reflects favorable location of the hotel and established brand image of Holiday Inn, and the healthy average rate per room and occupancy rate. These strengths are partially offset by intense competition in the premium segment and weak interest coverage. Outlook: Stable CRISIL expects WHPL to maintain a stable credit risk profile, aided by the established brand of Holiday Inn. The outlook may be revised to 'Positive,' if substantial improvement in the average room rate and occupancy levels, results in higher cash accrual and strengthens the financial risk profile. The outlook may be revised to 'Negative' if lower-than-expected cash accrual, on account of low occupancy rate or/and debt-funded capex, weakens the financial risk profile. WHPL, incorporated in 2009, operates the Holiday Inn hotel in Delhi Aerocity. The hotel commenced commercial operations from March 2014. =============== M A L A Y S I A =============== PERISAI PETROLEUM: Emas Tries to End Obligation to Pay US$43MM -------------------------------------------------------------- The Strait Times reports that Emas Offshore is trying to rid itself of an obligation to pay US$43 million (SGD61.3 million) to the collapsed Perisai Petroleum Teknologi as part of an agreement between the two parties four years ago. ST relates that in a statement to the Singapore Exchange late on Dec. 8, Emas, a subsidiary of Ezra Holdings, said that it has issued a notification of termination of the share sale agreement and a separate "shareholders' agreement" due to certain breaches by Perisai. It did not elaborate on the breaches, the report says. According to ST, Emas had been in talks with Perisai, a joint venture partner, since October to try to resolve various issues among themselves. But despite the efforts made by both sides, they had yet to fully resolve the various issues, Emas said on Dec. 8. Back in December 2012, Emas and Perisai entered into an agreement that gives Perisai the right to exercise a "put option" to sell its 51% stake in subsidiary SJR Marine and a mobile offshore production unit to Emas for US$43 million, the report recalls. The put was originally exercisable on Nov. 26. On Dec. 1, Emas said that it had reached an interim agreement with Perisai to defer the exercise of the put option to after close of business on Dec 8, ST reports. If the share sale agreement is in fact terminated, the put option will be extinguished. Perisai will remain the 51% shareholder of SJR while Emas will retain its 49% share, the report notes. Under the terms of the shareholders' agreement, Perisai is required to sell its 51% shares in SJR to Emas for US$1 apiece, Emas said, adds ST. Perisai Petroleum Teknologi Bhd. (KLSE:PERISAI) -- http://www.perisai.biz/-- is a Malaysia-based investment holding company engaged in the provision of management, administrative and financial support services to its subsidiaries. The Company operates in three segments: Drilling Units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas offshore drilling; Production units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas production, and Marine Vessels, which is engaged in the provision of vessels, barges and equipment on vessel charter services. Its subsidiaries include Alpha Perisai Sdn. Bhd., which is engaged in the provision of administrative support services; Perisai Offshore Sdn. Bhd., which is engaged in the provision of oil and gas services in upstream oil sector, and Perisai production Holdings Sdn. Bhd., which is an investment holding company, among others. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 14, 2016, The Star Online said Perisai Petroleum Teknologi Bhd has been classified as a Practice Note 17 (PN17) company after its unit Perisai Capital (L) Inc defaulted on SGD125 million debt notes due on Oct. 3. The Star related that the upstream oil and gas provider said in a statement to Bursa Malaysia that it therefore must regularize its financial position within 12 months and implement the regularization plan within the timeframe stipulated by either the Securities Commission or Bursa Malaysia Securities Bhd. ==================== N E W Z E A L A N D ==================== HANSA LIMITED: Liquidators Find NZ$9MM in Suspected Ponzi Scheme ---------------------------------------------------------------- Hamish McNicol at Stuff.co.nz reports that investors poured at least NZ$9 million into a company now thought to be a significant ponzi scheme, liquidators say. But not much of that money went back out to investors, and instead "substantial funds" appear to have been transferred to related companies, the report says. In July, the Serious Fraud Office (SFO) and Financial Markets Authority (FMA) said they were investigating Paul Clifford Hibbs and his company, Hansa, Stuff.co.nz recalls. Stuff.co.nz relates that while regulators would not comment further, investor John Docherty said in September he and his wife had been left stranded after allegedly being swindled out of NZ$650,000. According to Stuff.co.nz, Mr. Docherty wanted to share his story after a meeting was held with investors in August, at which they were told the investigation had found the hallmarks of a ponzi scheme. The SFO and FMA have both declined to respond to Docherty's claims, but multiple sources have since said investors were told at least NZ$20 million was missing, Stuff.co.nz relates. Late last month, Hansa went into liquidation on application by Mr. Docherty and his wife, Stuff.co.nz discloses. According to the report, Waterstone Insolvency liquidator Damien Grant said on Dec. 8 they had so far identified payments of at least NZ$9 million into the company. But they were not seeing large amounts of that money being transferred back out to investors, of which there was at least a dozen. "Substantial funds appear to have gone to related entities," the report quotes Mr. Grant as saying. Liquidators were yet to interview Mr. Hibbs or recover the company's books and records. Stuff.co.nz relates that Mr. Grant said some investors were told their funds were held with various institutional investors, but liquidators had confirmed that was not the case. "It's now a tracing exercise for us." According to Stuff.co.nz, Hansa's investment prospectus said clients, of which it has been claimed there were about 30, needed to have investable assets of at least NZ$1 million. The prospectus said Hansa's "unique privileges and benefits" were only available by invitation, Stuff.co.nz relays. High-profile businessman Craig Stobo was listed as Hansa's managing director in its prospectus, but in October said he was "completely unaware" this was the case until regulators contacted him, Stuff.co.nz reports. Stuff.co.nz relates that Mr. Stobo said he was never involved or had any relationship with Hansa, and gave regulators as much information as he could. Hansa was established in 2005, with Mr. Hibbs listed as the only director and shareholder the company has ever had, Stuff.co.nz discloses. ================= S I N G A P O R E ================= PACIFIC ANDES: May Have Overstated Assets, Revenues and Profits --------------------------------------------------------------- Marissa Lee at The Strait Times reports that Pacific Andes Resources (Pard), which defaulted on SGD200 million worth of Singdollar bonds in January, is "highly likely" to have overstated its assets, revenues and profits, according to a letter to creditors. ST relates that the letter from FTI Consulting, which is the liquidator of Pard unit Pacific Andes Enterprises (PAE), has alleged that PAE's largest asset -- prepayments exceeding US$700 million as at March 28 -- "cannot be genuine". According to the report, PAE, which trades frozen seafood products, was supposed to have used the prepayments to pay Solar Fish Trading, an agent that purportedly dealt with Russian fishing companies to supply fish to PAE. But according to trade finance documentation from five banks for periods from January 2013, all invoices of Solar Fish financed by these lenders were paid to the same bank accounts that had been previously alleged to be involved in "substantial circular fund flows", FTI said, the report relays. ST relates that since the funds were channelled this way, Solar Fish could not have used the money from PAE to deal with Russian fishing companies, FTI added in the letter, an update to creditors on the status of the liquidation dated Dec 6. It also noted that it is "highly likely that all or the majority of the prepayment and sales recorded in the financial accounts of the company are fictitious," relays ST. "As such, it is apparent that material levels of revenue, purchases, profit and assets reported by the company (PAE), and consolidated in relevant holding companies, cannot be genuine." In response to queries from ST, a Pacific Andes spokesman called the letter a "vendetta" by FTI. "These are largely old allegations that originated from an FTI report which was written two years ago . . . the allegations formed the basis of an application by HSBC for the appointment of provisional liquidators before the Hong Kong High Court at the end of 2015, and the court was totally unconvinced by the allegations and dismissed the application," the report quotes Mr. Geoff Walsh as saying. The earlier FTI report had been commissioned by HSBC, after the bank's risk team spotted certain "red flags" at parent company Pacific Andes International Holdings, says ST. FTI said that most of the payments it traced from Solar Fish went to Hangzhou Investments, and from there to Parkmond Group, a unit of Pard, rather than to Russian fishing firms, according to ST. Separately, a draft report from PwC seen by ST also detailed how, at the end of June last year, Pard had made about US$611 million (SGD873.3 million) worth of prepayments to three Russian agents without any formal documentation. PwC had been engaged by Pard at the banks' behest in December last year, ST notes. Mr. Walsh added that Pard's independent directors have engaged RSM Corporate Advisory to undertake a forensic review of the allegations, but did not say when those findings are expected to be published. Pard had earlier said that a draft report would be out in September, says ST. About Pacific Andes Pacific Andes Resources Development Limited sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. N.Y. Case No. 16-12739) on September 29, 2016. The petition was signed by Ng Puay Yee, Annie (Jessie), executive chairman. The case is assigned to Judge James L. Garrity Jr. At the time of the filing, the Debtor estimated its assets at $1 billion to $10 billion and debts at $100 million to $500 million. The Debtor's case is not jointly administered with the case of its affiliate China Fishery Group Ltd. (Cayman), which sought Chapter 11 protection on June 30, 2016. SKY TRAVEL: STB Revokes License as Travel Agency Closes ------------------------------------------------------- The Singapore Tourism Board (STB), in accordance with the Travel Agents Act (Chapter 334), a Notice of Revocation has been served to Sky Travel & Tours Pte Ltd on Dec. 6, 2016, as the company has ceased operations and is unable to fulfil its obligations towards its customers. In accordance with the TA Act, Sky Travel & Tours Pte Ltd will be given until Dec. 27, 2016, to provide reasons against the revocation of their travel agent licence, failing which the revocation will take effect unless an appeal is submitted to the Ministry of Trade & Industry (MTI). STB said affected consumers should contact Sky Travel regarding the status of their booking or to seek a refund. "In the event that Sky Travel cannot be reached or fails to provide the relevant service delivery or refund, consumers with applicable travel insurance should approach their insurance providers for assistance. Consumers who are not covered by travel insurance can approach the Consumers Association of Singapore (CASE) or the Small Claims Tribunal (SCT), where appropriate," STB said. STB is looking into the matter and may consider taking further action against Sky Travel and its directors, if necessary, STB added. "We take this opportunity to remind consumers to take precautionary measures such as purchasing travel insurance upon payment of the travel plans, and to pay by instalments instead of making full payment. The travel insurance should provide coverage for unforeseen events such as when a travel agent becomes insolvent," STB said. STB added that it adopts a serious view against errant travel agents and will not hesitate to take necessary action to protect consumers' interest and safeguard the reputation of Singapore's tourism sector. ==================== S O U T H K O R E A ==================== SAMSUN LOGIX: Court OKs Termination of Corporate Turnaround ----------------------------------------------------------- Reuters reports that Korea Line Corp said the Seoul Central District Court has approved its unit Samsun Logix Corporation's termination of corporation turnaround process, on Dec. 8. Based in Seoul, South Korea, Samsun Logix Corporation -- http://www.samsunlogix.com/eng/index.php-- owns and operates ships worldwide. The company operates cape, panamax, handymax and supramax, small handy, and POSCO size ships, as well as tankers. Samsun Logix filed for bankruptcy protection in July 2015. ================ S R I L A N K A ================ NATIONAL DEVELOPMENT: S&P Lowers ICR to 'B'; Outlook Stable ----------------------------------------------------------- S&P Global Ratings said that it lowered its long-term issuer credit rating on National Development Bank PLC (NDB) to 'B' from 'B+'. The outlook is stable. S&P affirmed its short-term issuer credit rating on the Sri Lanka-based bank at 'B'. "The downgrade reflects our view that NDB's weakened capital position is unlikely to improve over the next 12 months," said S&P Global Ratings credit analyst Amit Pandey. Accordingly, S&P has lowered its assessment of the bank's stand-alone credit profile (SACP) to 'b' from 'b+'. "We now consider that NDB's capital and earnings profile has become weak. We had earlier expected the bank to raise capital, which would strengthen its risk-adjusted capital (RAC) ratio to above 5%, after it dropped to 4.9% as of Dec. 31, 2015. But the bank has been unable to do that. Additionally, we believe that the bank is unlikely to raise capital in the next six months, given the recent changes in the top management and lack of any progress on plans to raise any capital. Therefore, we do not expect the bank's RAC ratio to strengthen during this time," S&P said. S&P expects NDB to maintain its satisfactory business and revenue diversification over the next 12 months. In S&P's view, the bank has an adequate risk position for its size and business scale. However, the bank's aggressive growth and small branch network has resulted in a below-average--albeit improved--funding profile. "The stable outlook over the next 12 months reflects our view that NDB is relatively insulated compared to peers from potential heightening of economic risks facing all financial institutions operating in Sri Lanka," said Mr. Pandey. "Although we expect no rating movement in the next one year, rating upside will outweigh downside risks over the longer term." S&P sees limited downside to the rating on NDB in the next one year. S&P could upgrade NDB to 'B+' if it anticipates that the bank is likely to maintain its RAC ratio above 5% or its funding profile has improved to be in line with that of the overall industry. Nevertheless, S&P considers both scenarios unlikely in the next one year. ********* 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, Ivy B. Magdadaro, 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 ***