/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/170705.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, July 5, 2017, Vol. 20, No. 132 Headlines A U S T R A L I A CIVIL DRAINAGE: Second Creditors' Meeting Set for July 11 DANLEIGH TOOLING: First Creditors' Meeting Set for July 12 ION INFRASTRUCTURE: First Creditors' Meeting Set for July 13 LIGHTSTYLE PTY: First Creditors' Meeting Set for July 12 NEWSKILLS LIMITED: First Creditors' Meeting Set for July 12 OUTBACK TRAVEL: Goes Into Voluntary Administration RAILWORKS RESOURCE: First Creditors' Meeting Set for July 13 V FACTOR: Second Creditors' Meeting Set for July 11 * Australian Auto ABS and RMBS Delinquencies Rise in April 2017 C H I N A CHINA WATER: FY2017 Results in Line With Moody's Ba1 Ratings EHI CAR: Fitch Affirms 'BB-' IDR & Revises Outlook to Negative GUANGDONG INT'L: Land Assets Acquired by China Vanke for US$8BB WUKONG BIKES: Bike-Sharing Company Files Bankruptcy YANZHOU COAL: Unit's Revised Offer No Impact on Moody's B2 CFR H O N G K O N G NOBLE GROUP: Sells Off Brazilian Electric Power Unit for US$3MM I N D I A APOLLO ENTERPRISES: CRISIL Reaffirms 'C' Rating on INR2.5MM Loan ASHIRVAD FOOD: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable B.N. GLOBAL: CRISIL Lowers Rating on INR130MM Cash Loan to B BIJJARAGI MOTORS: CRISIL Reaffirms B Rating on INR5MM Loan BMW LOGISTICS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable BN PRECAST: CRISIL Reaffirms 'B' Rating on INR7.70MM LT Loan CBS TECHNOLOGIES: CRISIL Reaffirms 'B+' Rating on INR3.25MM Loan CHOUDHARY BUILDERS: Ind-Ra Assigns BB+ Issuer Rating DURGASHAKTI FOODS: CRISIL Cuts Rating on INR10.51MM Loan to B EPSON VITRIFIED: CRISIL Lowers Rating on INR7.5MM Loan to 'B' FAIRDEAL OVERSEAS: Ind-Ra Gives BB- Issuer Rating, Outlook Stable FLOOR GARDENS: CRISIL Reaffirms 'B' Rating on INR6MM Loan GANGA FABRICS: CRISIL Lowers Rating on INR6MM Cash Loan to B GOLCHHA ENTERPRISES: CRISIL Lowers Rating on INR2.5MM Loan to B HARIT FABTEX: CRISIL Lowers Rating on INR16MM Term Loan to B HARIWANSH PACKAGING: CRISIL Cuts Rating on INR7.25MM Loan to B HOWRAH GASES: CRISIL Lowers Rating on INR12MM Cash Loan to BB JAIPRAKASH ASSOCIATES: Lenders Approve Loan Recast Plan JYOTI HOSPITAL: CRISIL Reaffirms B- Rating on INR9MM Term Loan KANAN KNITWEAR: CRISIL Cuts Rating on INR10MM LT Loan to B KOHINOOR CTNL: Edelweiss Seeks to Wind Up Property Developer LIFE STYLE: CRISIL Lowers Rating on INR5MM Cash Loan to B LOHR INDIA: CRISIL Reaffirms 'D' Rating on INR9.5MM cash Loan MARUTI METAL: CRISIL Reaffirms 'D' Rating on INR13.05MM LT Loan MILLIONAIRE DEVELOPERS: CRISIL Cuts Rating on INR5MM Loan to B MOHAK WOOLLENS: CRISIL Reaffirms 'B' Rating on INR4.65MM Loan ODYSSEY ADVANCED: Ind-Ra Rates BB- Issuer Rating, Outlook Stable OM AGROENERGY: CRISIL Assigns 'B' Rating to INR7.85MM LT Loan PAREKH PLASTICS: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan PRABIR FOODSTUFF: CRISIL Reaffirms 'D' Rating on INR15MM Loan PRATHAMESH LAND: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable R S PAPER: CRISIL Reaffirms 'B' Rating on INR4.4MM Term Loan RAAJMAHAL DEVELOPERS: CRISIL Cuts Rating on INR37MM Loan to B RIM JHIM: CRISIL Reaffirms 'B' Rating on INR179.5MM Cash Loan S.V. CHEM: CRISIL Assigns B+ Rating to INR3.0MM Cash Loan SHREE RAJARAM: CRISIL Reaffirms 'B' Rating on INR10MM Cash Loan SIR SHADI: CRISIL Raises Rating on INR71MM Cash Loan to 'B' SPERRY INTERNATIONAL: CRISIL Assigns 'B' Rating to INR12MM Loan SPERRY PLAST: CRISIL Assigns B Rating to INR100MM Term Loan TAYO ROLLS: To Refer to NCLT for Insolvencey Resolution Process VIRCHAND NARSI: CRISIL Lowers Rating on INR26.5MM Loan to B J A P A N TOSHIBA CORP: SK Hynix Demands Voting Rights in Chip Unit N E W Z E A L A N D FP IGNITION 2017: Moody's Assigns B1(sf) Rating to Cl. F Notes - - - - - ================= A U S T R A L I A ================= CIVIL DRAINAGE: Second Creditors' Meeting Set for July 11 --------------------------------------------------------- A second meeting of creditors in the proceedings of Civil Drainage Solutions Pty. Limited has been set for July 11, 2017, at 11:00 a.m., at the offices of AMB Insolvency, Level 1 6 Allison Street, in Bowen Hills, Queensland. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 10, 2017, at 4:00 p.m. Anne Marie Barley of AMB Insolvency was appointed as administrator of Civil Drainage on July 3, 2017. DANLEIGH TOOLING: First Creditors' Meeting Set for July 12 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Danleigh Tooling and Engineering Pty. Ltd., trading as "Danleigh Engineering" will be held at The Qantas Meeting Rooms, Qantas domestic T1 Mezzanine Level (opposite Gate 1), Departure Dr, Melbourne Airport, in Victoria, on July 12, 2017, at 11:00 a.m. Gavin Moss and Trent McMillen of Chifley Advisory Pty Ltd were appointed as administrators of Danleigh Tooling on June 30, 2017. ION INFRASTRUCTURE: First Creditors' Meeting Set for July 13 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Ion Infrastructure Services Pty Ltd will be held at the offices of Mackay Goodwin, Suite 2, Level 8, 10 Bridge Street, in Sydney, New South Wales, on July 13, 2017, at 3:00 p.m. Domenic Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of Ion Infrastructure on July 3, 2017. LIGHTSTYLE PTY: First Creditors' Meeting Set for July 12 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Lightstyle Pty Ltd will be held at the offices of Cor Cordis Chartered Accountants, 'One Wharf Lane', Level 20, 161 Sussex Street, in Sydney, New South Wales, on July 12, 2017, at 10:30 a.m. Jason Tang and Andre Lakomy of Cor Cordis Chartered Accountants were appointed as administrators of Lightstyle Pty on June 30, 2017. NEWSKILLS LIMITED: First Creditors' Meeting Set for July 12 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Newskills Limited will be held at the offices of PPB Advisory, Level 21, 181 William Street, in Melbourne, Victoria, on July 12, 2017, at 2:00 p.m. Craig Crosbie and Robert Ditrich of PPB Advisory were appointed as administrators of Newskills Limited on June 30, 2017. OUTBACK TRAVEL: Goes Into Voluntary Administration ---------------------------------------------------- Alicia Perera of The West Australian reports that North West roadhouse operator Outback Travel Centres has gone into voluntary administration this week after a steep drop in revenue combined with rental agreements still set at mining boom levels took their toll. OTC has roadhouses in Karratha, Port Hedland, Newman and Carnarvon. The OTC management issued a statement, relating that they made the decision after six months of repeated attempts to renegotiate lease agreements over the sites proved unsuccessful, according to The West Australian. Nevertheless, the roadhouses will continue to operate as normal for the foreseeable future, with all staff still in place and services ongoing under the new administrators, the report relays. OTC Director Craig Mitchell said a significant drop in revenue since the end of the mining boom had made the rental agreements entered into at that time untenable, the report notes. "After taking a controlling stake in OTC in December 2016, the new management team initiated a turnaround strategy which included renegotiating OTC's rental agreements with the property trustee, which were struck at the height of the mining construction boom," the report quoted Mr. Mitchell as saying. "OTC has experienced up to two-thirds decline in revenues resulting from a substantial reduction in road traffic." "Ultimately the high rental costs and decline in revenue made the company's financial position unsustainable leaving the directors with no option but to place OTC into VA," Mr. Mitchell added. Ferrier Hodgson has been appointed as administrators, The Australian cites. An OTC spokesman said they hoped the administrator could help nurse the business back to health, including through a re- negotiation of rents, the report relays. The appointment of administrators will not impact OTC's holding company, Outback Network Pty Ltd, or its property and accommodation interests, the report adds. RAILWORKS RESOURCE: First Creditors' Meeting Set for July 13 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Railworks Resource Management Pty Ltd will be held at the offices of Mackay Goodwin, Suite 2, Level 8, 10 Bridge Street, in Sydney, NSW, on July 13, 2017, at 12:00 p.m. Domenic Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of Railworks Resource on July 3, 2017. V FACTOR: Second Creditors' Meeting Set for July 11 --------------------------------------------------- A second meeting of creditors in the proceedings of The V Factor Australia Pty Ltd has been set for July 11, 2017, at 3:00 p.m., at the offices of Mackay Goodwin, Suite 2, Level 8, 10 Bridge Street, in Sydney, New South Wales. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 6, 2017, at 4:00 p.m. Domenic Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of V Factor on July 3, 2017. * Australian Auto ABS and RMBS Delinquencies Rise in April 2017 --------------------------------------------------------------- Moody's Investors Service says that delinquencies for Australian auto loan asset-backed securities (ABS) and prime residential mortgage-backed securities (RMBS) increased in April 2017 from March 2017. Specifically, 30+ day delinquencies for Australian auto loan ABS transactions rose to 1.66% in April 2017 from 1.53% in March 2017 and 1.60% in April 2016. Delinquencies for prime RMBS transactions also rose, registering 1.71% in April 2017 from 1.63% in March 2017 and 1.52% in April 2016. "Looking ahead, Moody's expects that delinquencies for Australian auto loan ABS and prime RMBS will continue to rise in 2017," says Alena Chen, a Moody's Vice-President and Senior Analyst. "Weaker economic conditions in states reliant on the mining industry, rising underemployment, weak wage growth and less favorable housing market conditions will drive delinquencies higher," adds Chen. Chen was speaking on the release of the latest edition of Moody's monthly Global Structured Finance Collateral Performance Review report. Additionally, Moody's says that rising household debt and growing risks in the housing market are credit negative for structured finance. Rising household indebtedness and elevated risks in the housing market increase the risks of a sharper than anticipated correction in the Australian housing market, and rising delinquencies and defaults in RMBS portfolios. Risks in the Australian housing market have been rising in recent years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has led to very high and rising household indebtedness. The ratio of household debt to disposable income in Australia was 188.7% at the end of 2016. Nevertheless, losses in RMBS portfolios should remain low, because house price appreciation has raised the amount of home equity available to absorb losses if loans were to default. In fact, rising house prices have added an average 14 percentage points of equity to the mortgage loans in Moody's Australian RMBS portfolio. Moody's report titled "Bank downgrades have limited impact on structured finance" can be access by subscribers through the link provided at the end of this press release. ABOUT MOODY'S GLOBAL STRUCTURED FINANCE COLLATERAL PERFORMANCE REVIEW REPORT Moody's Global Structured Finance Collateral Performance Review Report is updated monthly and covers the collateral performance of various structured finance sectors located globally. The report features typical aggregate performance metrics, such as delinquencies and losses, as well as sector-specific metrics that include residential and commercial property prices, loans in special servicing, refinancing profiles, average weighted-average rating factor levels, senior over-collateralization levels, payment rates, and excess spread. The underlying data is also included. The metrics are accompanied by sector commentary and outlooks, and projected losses by vintage where applicable. The Australian data focus on Australian Auto ABS, Australian Prime RMBS and Australian Home Prices. ========= C H I N A ========= CHINA WATER: FY2017 Results in Line With Moody's Ba1 Ratings ------------------------------------------------------------ Moody's Investors Service says that China Water Affairs Group Limited's (CWA) results for the fiscal year ended March 31, 2017 (FY2017) were broadly consistent with Moody's expectations, as well as the company's Ba1 corporate family and senior unsecured ratings. The ratings outlook remains stable. "CWA's improved operational performance in FY2017 reflects its growing water supply operations," says Ivy Poon, a Moody's Vice President and Senior Analyst. "The moderation in the company's credit metrics is within Moody's expectations; driven by the company's continued capital expenditure," adds Poon. Revenue for CWA's water supply operation rose 12.1% year-on-year, supported by moderate growth in its total water supply capacity. Its gross capacity - water supply and sewage water treatment - rose to 6.67 million tonnes/day at end-March 2017 from 6.20 million tonnes/day at end-March 2016. The capacity growth was mainly driven by the project additions in Guangdong and Jiangxi provinces. Majority of the company's gross capacity came from water supply operations. The company also reported a 52.7% year-on-year increase to HKD2.3 billion in water supply construction services revenue, of which 80%-90% was contributed by CWA's construction subsidiary responsible for the upgrade of its water supply infrastructure under concession agreements, as intercompany transactions. Accordingly, CWA's total revenue and adjusted EBITDA in FY2017 increased to HKD5.71 billion and HKD2.27 billion respectively, representing a 20.4% and 11.0% year-on-year growth. On the other hand, CWA's adjusted debt increased by HKD3.8 billion to HKD11.8 billion at end-March 2017. As a result, CWA's adjusted funds from operations (FFO)/net debt and FFO interest coverage weakened to 18.4% and 4.1x respectively at end-March 2017 from 25.0% and 4.6x at end-March 2016. Moody's FFO calculation has excluded the construction margin from CWA's intercompany projects, due to elimination during the consoldiation process. The expected moderation in the company's financial profile was because of its large capital expenditure for (1) expansion and upgrade of facilities for CWA's currently operating projects, and (2) acquisition of new projects. Moody's expects that CWA will maintain an annual growth of 8%-10% in capacity expansion for water supplies and sewage treatment operations during FY2018-19. This situation will translate into an annual capital expenditure that is broadly similar to the level of FY2017. As such, Moody's estimates that the company's FFO/net debt and FFO interest coverage will register 18%-22% and 3.5x-4.2x during FY2018-19. The projected metrics will remain consistent with the company's current ratings level. Furthermore, CWA's Ba1 ratings will continue to benefit from its stable water supply business, as highlighted by the segment's low volume risk and the company's monopoly status in its servicing regions. The principal methodology used in these ratings was Regulated Water Utilities published in December 2015. China Water Affairs Group Limited is mainly engaged in the provision of city water supply services in China. At end-March 2017, its gross capacity, including both water supply and sewage water treatment, totaled 6.67 million tonnes/day, covering around 50 cities in China. The company is listed on the Hong Kong Stock Exchange. At January 2017, it was 26.7% owned by its chairman and founder, Mr. Duan Chuan Liang, 19.5% by ORIX Corporation (Baa1 positive), 4.8% by Norges Bank (unrated), 2.4% by International Finance Corporation (Aaa stable) and 46.6% by members of the public. EHI CAR: Fitch Affirms 'BB-' IDR & Revises Outlook to Negative -------------------------------------------------------------- Fitch Ratings has affirmed China-based car rental and services operator eHi Car Services Limited's Long-Term Issuer Default Rating (IDR), senior unsecured rating and the rating of eHi's outstanding USD200 million 7.5% senior notes due 2018 affirmed at 'BB-'. The Outlook is revised to Negative from Stable. The Outlook revision reflects the company's higher leverage, ongoing capex requirements and Fitch's expectation that deleveraging is not probable in the next few years. KEY RATING DRIVERS Rising Leverage: Fitch expects eHi's FFO-adjusted net leverage to remain above 3.0x over the next few years, even though the company is starting to moderate its expansion and capex plans for 2017. eHi's FFO-adjusted net leverage rose sharply to 3.4x in 2016, from just 0.8x at end-2015, due to higher-than-Fitch-expected net capital expenditure for vehicle fleet expansion, despite strong growth in EBITDA and FFO. Capex to Moderate: Fitch expects eHi to slow capital expenditure in 2017, following capex of CNY3.7 billion in 2016. The company is exploring financing options to lower its cash outlay on vehicle purchases. eHi's capex is also constrained by covenants on its syndicated loan, which require that total debt/EBITDA falls below 3.5x by end-2017. National Expansion, Market Leader: eHi remains one of China's leading car rental companies, with majority market share in Shanghai and eastern China. Its total fleet size rose by 50% to 56,916 vehicles and total revenue increased by 45% to CNY2.1 billion in 2016. eHi also expanded its geographical footprint to cover 216 cities. Fitch expects eHi to continue expanding and for its fleet size to reach almost 67,000 vehicles by end-2017. The company has also narrowed the gap between itself and the market leader, CAR Inc. (BB/Negative), over the previous two years, with faster revenue and fleet expansion. Competitive Pressure, Regulatory Risk: China's car rental and services market continues to change rapidly. eHi faces fierce competition, particularly from CAR Inc., which cut its prices at the beginning of 2017. This has not directly affected eHi's margins so far, but may pressure its pricing and profitability if it continues. China's regulatory framework is also evolving and some changes may adversely affect eHi's operations. DERIVATION SUMMARY eHi has a smaller operating scale and weaker financial profile than other Fitch-rated car rental operators, such as CAR Inc., China's largest car rental operator, and Localiza Rent a Car S.A. (BB+/Negative), Brazil's leading rental car operator. However eHi has lower concentration risk compared with CAR Inc., which is exposed to one large customer. No Country Ceiling, parent/subsidiary or operating environment aspects have an impact on the rating. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - 20,000 vehicles added and 10,000 vehicles disposed in 2017 - 37% revenue growth in 2017, then 4%-12% in 2018-2020 (2016: 45%) - EBITDA margin of 45%-47% in 2017-2020 (2016: 44%) RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to the Outlook being revised to Stable - FFO-adjusted net leverage sustained below 3.0x (2016: 3.4x) - EBITDA margin sustained above 50% Developments that May, Individually or Collectively, Lead to Negative Rating Action - FFO-adjusted net leverage above 3.0x for a sustained period - FFO fixed-charge coverage below 3.0x for a sustained period (2016: 3.8x) - EBITDA margin below 40% for a sustained period LIQUIDITY Satisfactory Liquidity: eHi has sufficient liquidity, with CNY787 million of cash and cash equivalents and CNY63 million in undrawn loan facilities at end-2016. Fitch expects the company to successfully roll over its domestic bank loans. However, eHi has CNY2.3 billion in debt maturing in 2018, including the USD200 million bond and 60% of the USD150 million syndicated loan. Liquidity risk will increase if the company fails to address its refinancing needs by end-2017. eHi signed a five-year framework agreement with China Development Bank Corporation (A+/Stable) in 2015, which covers various financing products for an aggregate amount CNY1.5 billion, of which CNY218 million had been drawn at end-2016. Some of these products are restricted for specific purposes, such as new vehicle purchases, but may nonetheless provide an additional source of liquidity. GUANGDONG INT'L: Land Assets Acquired by China Vanke for US$8BB --------------------------------------------------------------- Reuters' Clare Jim reports that China Vanke Co Ltd on June 30 said it has won an auction to buy the land assets of Guangdong Trust for CNY55.1 billion (US$8.13 billion). The companies involved were subsidiaries of Guangdong International Trust & Investment which in 1999 became China's first non-bank financial institution to enter bankruptcy, Reuters discloses. The auction was the first to use an exchange platform to dispose of property as part of a legal procedure, Xinhua news agency reported, citing Guangdong Assets and Equity Exchange Group, according to Reuters. Reuters relates that Vanke said the principal assets involve 16 land parcels in prime districts of Guangzhou, a top-tier city in southern China, with an expected total gross floor area of 2.1 million square metres. The company said it plans to develop the land into residential property, commercial property, hotels and offices, Reuters relays. Vanke bid 23 percent over the assets' listed price, beating bids from eight peers, Reuters reports, citing Xinhua. Established in 1984, Vanke is a large residential real estate developer in the People's Republic of China. WUKONG BIKES: Bike-Sharing Company Files Bankruptcy --------------------------------------------------- BBC News reports that Chongqing-based Wukong Bikes, a Chinese bike-sharing company, has gone out of business after 90% of its bikes went missing in the first five months. Wukong Bikes said the bulk of its 1,200 two-wheelers were lost or stolen, BBC News relates. Unlike rivals, the firm did not put GPS systems on its bikes and by the time it realised the technology was necessary, money had run out, says BBC News. It is believed to be the first bankruptcy of China's booming bike- sharing industry, BBC News notes. BBC News says billed as "Uber for bikes", China's tech giants have been funding sophisticated bike hire businesses as a potential solution to congested roads. Tencent-backed Mobike and Ofo, supported by Alibaba and Xiaomi, are dominating the market. But Wukong was a much smaller player, aimed mainly at students in the city. According to BBC News, founder Lei Houyi told local media that as well as the lack of GPS, his firm had struggled because its bikes were of inferior quality to those used by its larger competitors and were damaged too easily. He added that while users were initially charged, Wukong resorted to giving away bicycles rides for free to try and compete with other players, the report relays. YANZHOU COAL: Unit's Revised Offer No Impact on Moody's B2 CFR -------------------------------------------------------------- Moody's Investors Service says that Yanzhou Coal Mining Company Limited's B2 corporate family rating and the stable outlook on the rating are unaffected by its subsidiary's - Yancoal Australia Limited's (unrated) - revised offer for the acquisition of Coal & Allied Industries Limited (unrated). Moody's also says that the B2 backed senior unsecured rating on the bonds issued by Yanzhou Coal's subsidiary, Yancoal International Resources Development Co., Limited, and guaranteed by Yanzhou Coal, is unaffected by the revised acquisition offer. On June 29, 2017, Rio Tinto plc's (A3 stable) and Rio Tinto Limited's (A3 stable) shareholders approved the revised offer from Yancoal Australia - Yanzhou Coal's 78%-owned subsidiary - for the acquisition of a 100% share in Coal & Allied Industries. Under the proposal, the total consideration would register USD2.69 billion, comprising USD2.45 billion in cash payable in full on completion, as well as USD240 million via unconditional guaranteed royalty payments, of which, USD200 million will be paid before the end of 2018. And, Yancoal Australia's parent company, Yankuang Group Company Limited (unrated), will provide financial assurance of up to USD2.1 billion in support of the transaction. Under the sale and purchase agreement, Yancoal Australia made a tag-along offer to acquire Mitsubishi Development Pty. Ltd's ((P)A2 negative) 32.4% interest in the Hunter Valley Operations, one of three coal mine operations owned by Coal & Allied Industries, for USD710 million. "Moody's expects that if the acquisition goes ahead, Yanzhou Coal's credit metrics will remain in line with its current standalone credit profile, in view of the revised consideration amount and payment schedule," says Gerwin Ho, a Moody's Vice President and Senior Analyst, and also the International Lead Analyst for Yanzhou Coal. Moody's assumes that the consideration payable will be funded by a combination of equity, debt and internal cash. Yancoal Australia intends to finance the transaction through a capital raising, and Yanzhou Coal has announced that it would subscribe to around USD1 billion of Yancoal Australia's pro-rata entitlement offer via a private placement of its A-shares listed on the Shanghai Stock Exchange. The private placement is subject to regulatory approval. Moody's expects that Yanzhou Coal's debt/EBITDA will likely stay at around 8.0x-8.5x and 7.0x-7.5x in 2017 and 2018, respectively, after taking into consideration an increase in debt to partly fund the transaction, as well as improvements in the company's EBITDA due to contributions from Coal & Allied Industries, reduced losses at Yancoal Australia, and the modest recovery of coal prices. "Yanzhou Coal's standalone credit profile also reflects its weak liquidity position and aggressive acquisitive appetite," says Cindy Yang, a Moody's Assistant Vice President and Analyst, and also the Local Market Analyst for Yanzhou Coal. Yanzhou Coal's cash and deposit balances of RMB20 billion at end- 2016 were insufficient to cover its short-term debt of RMB31 billion and capex requirement. The company's overseas investments also require offshore funding. It issued USD500 million of senior perpetual capital securities in April 2017. The issuance will cover the USD357 million of senior unsecured offshore bonds due in May 2017. Moody's believes the company's refinancing risk will be mitigated by its good access to bank financing and to the onshore bond and capital markets, by virtue of its status as a state-owned enterprise and significant scale. The principal methodology used in these ratings was Global Mining Industry published in August 2014. Yanzhou Coal Mining Company Limited listed on the Shanghai, Hong Kong and New York stock exchanges in 1998. It was 56.6%-owned by Yankuang Group Corporation Limited at end-2016, a state-owned enterprise that is in turn wholly owned by the Shandong Provincial Government. At December 31, 2016, Yanzhou Coal owned and operated 18 coal mines across China and Australia, including in Shandong and Shanxi provinces and the Inner Mongolia Autonomous Region, as well as the Australian states of Queensland, New South Wales and Western Australia. Coal & Allied Industries Limited is a coal producer that owns interests in three coal mine operations in Australia, namely 67.6% of the Hunter Valley Operations, 80% of Mount Thorley and 55.6% of Warkworth. The three mines produce thermal coal and semi-soft coking coal. ================ H O N G K O N G ================ NOBLE GROUP: Sells Off Brazilian Electric Power Unit for US$3MM --------------------------------------------------------------- The Business Times reports that Noble Group has sold off a Brazilian subsidiary Noble Comercializadora de Energia Ltda (NCEL) for about US$3 million. According to the report, the commodities trader said in an exchange filing on June 29 that the consideration was satisfied in cash and arrived on a willing-buyer, willing-seller basis taking into account the relevant market and commercial considerations. Noble owned 100 per cent of the company, which is primarily engaged in the sale of electric power, the report notes. NCEL had a book value and net tangible asset value of about US$4.09 million as at May 31, said Noble, The Business Times adds. Hong Kong-based Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- engages in supply of agricultural, industrial and energy products. The Company supplies agricultural and energy products, metals, minerals and ores. Agriculture products include grains, oilseeds and sugar to palm oil, coffee, and cocoa. Energy business includes coal, gas and liquid energy products. In metals, minerals and ores (MMO), it supplies iron ore, aluminum, special ores and alloys. The Company operates nearly in 140 locations. It supplies growth demand markets in Asia and Middle East. Alcoa World Alumina and Chemicals is the subsidiary of this company. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2017, S&P Global Ratings lowered its long-term corporate credit rating on Noble Group Ltd. to 'CCC+' from 'B+'. The outlook is negative. At the same time, S&P lowered the long-term issue rating on Noble's outstanding senior unsecured notes to 'CCC' from 'B'. In addition, S&P lowered its long-term Greater China regional scale rating on the company to 'cnCCC+' from 'cnBB-' and on the notes to 'cnCCC' from 'cnB+'. S&P downgraded Noble because it believed the company's capital structure is not sustainable. This is due to continuing weak cash flows and profitability, and Noble's access to funding will have further weakened following its weak results for the three months ending March 31, 2017. The TCR-AP reported on June 27, 2017, that Fitch Ratings has downgraded Noble Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'B-'. At the same time, the agency has downgraded Noble's senior unsecured rating and the ratings on all its outstanding senior unsecured notes to 'CCC' from 'B-'. The Recovery Rating is 'RR4'. Fitch has removed these ratings from Rating Watch Negative. ========= I N D I A ========= APOLLO ENTERPRISES: CRISIL Reaffirms 'C' Rating on INR2.5MM Loan ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Apollo Enterprises (AE) for obtaining information through letters and emails dated January 19, 2017, and February 9, 2017, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2.5 CRISIL C (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit/ 1.0 CRISIL C (Issuer Not Overdraft facility Cooperating; Rating Reaffirmed) Rupee Term Loan 6.5 CRISIL C (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Apollo Enterprises. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Apollo Enterprises is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL C'. AE was incorporated in 2005 as a partnership firm by Mr. Avinash Virkar, Mr. Ankur Agarwal and Mr. Pawan Agarwal. The firm is in the business of providing crane rental services. ASHIRVAD FOOD: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Ashirvad Food Products Private Limited's (AFPPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR206.4 mil. Fund-based limits affirmed with IND BB-/Stable rating; -- INR0.6 mil. Term loan due on December 2017 affirmed with IND BB-/Stable rating; -- INR58.8 mil. Non-fund-based limits affirmed with IND A4+ rating KEY RATING DRIVERS The affirmation reflects AFPPL's continued moderate scale of operations and credit metrics. According to the provisional financials of FY17, revenue declined to INR823million (FY16: INR840million) on account a decline in sales volume. However, the interest coverage and net leverage improved marginally to 1.4x in FY17P (FY16: 1.3x) and 8.5x (10.2x), respectively on account of an improvement in the operating EBITDA margins to 3.7% (3.2%) resulting from a decline in the raw material expenses. The liquidity position of the company has been stressed as reflected in the average peak utilisation of around 99% during 12 months ended May 2017, with instances of overutilisation which were regularised in two to nine days. The ratings, however, continue to derive strength from one of its promoter's track record of over two decades in the flour manufacturing business. RATING SENSITIVITIES Positive: Substantial improvement in its scale of operations and credit metrics will be positive for the ratings. Negative: Deterioration in its credit profile will be negative for the ratings COMPANY PROFILE AFFPL was incorporated in 2003, and manufactures wheat-based products such as wheat flour, white flour and semolina at its manufacturing facility in Purulia, West Bengal. It has an annual installed capacity of 1,00,800 tonnes. The company is managed by Lalit Kumar Poddar and Sarvesh Poddar. B.N. GLOBAL: CRISIL Lowers Rating on INR130MM Cash Loan to B ------------------------------------------------------------ CRISIL Ratings has been consistently following up with B. N. Global Private Limited (BNG) for obtaining information through letters and emails dated October 18, 2016, and November 21, 2016, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB-/Stable') Long Term Loan 3.75 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB-/Stable') Proposed Long Term Bank Loan Facility 5 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB-/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of B. N. Global Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for B. N. Global Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. BNG and SBN are promoted by Mr. Varun Chadha, Mr. Ankush Chadha, and Mr. Deepak Chadha. The companies, mill and process basmati rice, and sell it in the export and domestic markets. SBN was incorporated in 2007, while BNG was incorporated in 2014 to take over the assets and liabilities of partnership firm BN Exports. BIJJARAGI MOTORS: CRISIL Reaffirms B Rating on INR5MM Loan ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Bijjaragi Motors (BM) for obtaining information through letters and emails dated January 23, 2017 and February 13, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Inventory Funding 5 CRISIL B/Stable (Issuer Not Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Bijjaragi Motors. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Bijjaragi Motors is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. Set up in 2008, BM is an authorised dealer of passenger vehicles and spare parts of TML for Bijapur and Bagalkot. The firm is promoted by Mr. Raju Bijjargi and his family. BMW LOGISTICS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed BMW Logistics Private Limited's (BMWLPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR110 mil. Fund-based working capital limits affirmed with IND BB+/Stable KEY RATING DRIVERS The affirmation reflects BMWLPL's continued moderate credit profile with EBITDA interest coverage of 2.8x in FY17 (Provisional) (FY16: 2x) and net leverage of 3.7x (4.0x). The ratings reflect BMWLPL's volatility in revenue during FY15-FY17. During FY15, revenue was INR1,308 million which deteriorated to INR1,099 million during FY16. In FY17P, revenue improved to INR1,270 million. Increase in revenue during FY17P was due to an increase in sale of tractors which are majorly used for agriculture. The ratings also reflect in BMWLPL's tight liquidity situation as reflected in its fund-based utilisation of 97% for the 12 months ended April 2017. The ratings remain constrained by BMWL's trading nature of business resulting in low EBITDA margins of 2.6% during FY17P (FY16: 2.6%). The ratings, however, continue to benefit from BMWL's position as the sole dealer of International Tractors Limited's Sonalika tractors in its designated districts in central and eastern Uttar Pradesh and the support extended by the BMW group in the form of corporate guarantees and unsecured loans through the flagship entity BMW Ventures Ltd. RATING SENSITIVITIES Negative: Sustained deterioration in EBITDA interest coverage would lead to a negative rating action. Positive: Sustained improvement in EBITDA interest coverage would lead to a positive rating action. COMPANY PROFILE Incorporated in 2005, BMWLPL is an authorised distributor of International Tractor's Sonalika tractors in parts of central and eastern Uttar Pradesh. Its registered and corporate offices are located in Kolkata and branch office is located in Lucknow. The company was earlier engaged in the trading of gems and jewellery under the name of BMW Gems & Jewels Pvt Ltd, but changed its business to the current profile in 2012. The company also provides transportation services to its group companies in Bihar through its own fleet of trucks. BN PRECAST: CRISIL Reaffirms 'B' Rating on INR7.70MM LT Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with BN Precast Private Limited (BPPL) for obtaining information through letters and emails dated November 21, 2016, and December 22, 2016, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.26 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term Bank Loan Facility 7.70 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 4.04 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of BN Precast Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for BN Precast Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. Incorporated in January 2013, BPPL manufactures pre-cast concrete walls. The company is promoted by Mr. Nishant Patel and the manufacturing unit is located in Ahmedabad. CBS TECHNOLOGIES: CRISIL Reaffirms 'B+' Rating on INR3.25MM Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank facilities of CBS Technologies Private Limited (CBSTPL) at 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 (Reaffirmed) Cash Credit 3.25 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 0.15 CRISIL B+/Stable (Reaffirmed) Term Loan 0.60 CRISIL B+/Stable (Reaffirmed) Net sales declined by 4% in fiscal 2017, due to discontinuation of manufacturing of enamelled wires. However, CRISIL expects significant revenue growth of around 40%, albeit on a modest scale, in fiscal 2018, primarily driven by a likely increase in sale of bio-toilets, backed by the prime minister's Swatch Bharat Abhiyan. Revenue visibility is also supported by outstanding order book of INR7.5 crore as on May 31, 2017. Operating profitability increased to 10.70% in fiscal 2017 from 9.08% in fiscal 2016, on account of more orders executed in the bio-toilets division, which fetches higher margins. Margins are likely to remain at 9.5-10.0% over the medium term. Liquidity is adequate, with sufficient cushion between net cash accrual against debt obligations, and funding support from promoters in the form of unsecured loans (estimated at INR0.52 crore as on March 31, 2017). However, bank limit remained highly utilised, averaging 94% over the 12 months through March 2017, owing to working capital-intensive operations. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations amid intense competition: Scale remains small with estimated net sales at INR12.88 crore for fiscal 2017. Despite significant increase expected over the medium term, scale will likely remain small amid intense competition. * Working capital-intensive operations: Gross current assets were sizeable, estimated at 231 days as on March 31, 2017, with inventory and receivables of 62 and 169 days, respectively. Payables of 140 days partly support working capital requirement. Operations are likely to remain working capital intensive over the medium term as well. Strengths * Promoter's extensive experience along with diversified product profile: The key promoter's (Mr Sanjay Kumar Agarwal's) experience of over two decades has helped establish strong relationships with suppliers, and distributors and traders. The company manufactures centrifuge cleansing machines, bio toilets, and biomass reactors for both government entities (NTPC Ltd, Oil and Natural Gas Corporation Ltd, Indian Railways, and Ordnance Factory) and private players such as Reliance Industries Ltd. A diverse product portfolio limits risk of fall in demand for any one item. * Average financial risk profile: Financial risk profile is constrained by moderate total outside liabilities to tangible networth ratio estimated at 2.62 times on March 31, 2017. The ratio is likely to improve gradually over the medium term, with expected accretion to reserves, and no major debt-funded capital expenditure over the medium term. Debt protection metrics remain average, with estimated interest coverage and net cash accrual to total debt ratios at 2.37 times and 0.15 time, respectively, for fiscal 2017. Outlook: Stable CRISIL believes CBSTPL will continue to benefit over the medium term from its promoter's extensive experience and a diversified product profile. The outlook may be revised to 'Positive' if significant scaling up of operations leads to higher-than-expected cash accrual and improved working capital management. Conversely, the outlook may be revised to 'Negative' in case of more-than- expected, debt-funded capital expenditure, a decline in scale, or an increase in working capital requirement, leading to stretched liquidity. Set up in 1989 by Mr. Sanjay Kumar Agarwal as a proprietorship concern (Comprehensive Business Solutions) and reconstituted as a private limited company in 2003 (when Ms. Seema Agarwal, wife of Mr. Sanjay Agarwal, joined the company), CBSTPL manufactures centrifuge cleansing machines, bio toilets, and biomass reactors at its manufacturing unit in Greater Noida (Uttar Pradesh), and Kashipur (Uttaranchal). Profit after tax was INR0.26 crore on net sales of INR12.91 crore in fiscal 2016, against INR0.12 crore and INR12.48 crore, respectively, in fiscal 2015. CHOUDHARY BUILDERS: Ind-Ra Assigns BB+ Issuer Rating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Choudhary Builders Pvt. Ltd. (CBPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR175 mil. Fund-based working capital limit assigned with IND BB+/Stable rating KEY RATING DRIVERS The ratings reflect CBPL's small scale of operations. According to provisional financials for FY17, revenue was INR22 million (FY16: INR22 million). The ratings also reflect CBPL's single property rental-based revenue source so discontinuation of the present lease agreement may lead to liquidity stress. The ratings, however, are supported by the fact that the whole leasable area has been leased to Madhya Pradesh Commercial Tax Department; the entire rent collected is deposited in an escrow account and the residual cash is available to the company after debt service obligations have been met. Moreover, its promoters have over three decades of operating experience in real estate and development. RATING SENSITIVITIES Negative: Cancellation of lease agreement with its customer leading to a substantial decline in the scale of operations which will impact the liquidity position of the business will lead to a negative rating action. Positive: An increase in the scale of operations will lead to a positive rating action. COMPANY PROFILE Incorporated in February 1985 in Indore, CBPL constructed 0.17 million square feet Chetak Chambers at RNT Marg, Indore, in 1991. The company has sold an area of 67,000 square feet. The remaining area is owned by the company and has been fully leased out. DURGASHAKTI FOODS: CRISIL Cuts Rating on INR10.51MM Loan to B ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Durgashakti Foods Private Limited (DFPL) for obtaining information through letters and emails dated January 23, 2017 and February 13, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10.51 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') Term Loan 4.49 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Durgashakti Foods Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Durgashakti Foods Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. DFPL was set up in 2008 by Mr. Shashikant Sureka and his two brothers to expand their family-run edible oil business. The Sureka family has been manufacturing crude edible oil (soya and sunflower) and de-oiled cakes for more than two decades. The company's production facility is in Khamgaon (Maharashtra). EPSON VITRIFIED: CRISIL Lowers Rating on INR7.5MM Loan to 'B' ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Epson Vitrified Private Limited (EVPL) for obtaining information through letters and emails dated January 20, 2017, and February 10, 2017, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.25 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 7.50 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') Rupee Term Loan 8.35 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Epson Vitrified Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Epson Vitrified Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the long term rating at 'CRISIL B/Stable and reaffirmed the short term rating at 'CRISIL A4'. Incorporated in August 2010, EVPL manufactures vitrified ceramic tiles. Its manufacturing unit is in Morbi (Gujarat). The company is promoted by Mr. Haresh Patel and Mr. Ramniklal Patel. FAIRDEAL OVERSEAS: Ind-Ra Gives BB- Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Fairdeal Overseas (FO) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR150 mil. Fund-based working capital limit assigned IND BB- /Stable rating; and -- INR5 mil. Non-fund-based working capital limit assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect FO's moderate scale of operation and credit metrics. According to provisional financials for FY17, revenue was INR723 million (FY16: INR550 million), net leverage (adjusted debt net of cash/EBITDA) was 8.2x (5.9x), EBITDA interest coverage (operating EBITDA/gross interest expense) was 2.0x (1.5x) and EBITDA margin was 2.5% (2.3%). The deterioration in net leverage was due to an increase in total debt to INR165 million in FY17 (FY16: INR77 million). The company's liquidity position was moderate as indicated by 71.95% average utilisation of fund-based limits during the 12 months ended May 2017. The ratings, however, are supported by the decade-long experience of FO promoters in the distributorship business. RATING SENSITIVITIES Positive: An improvement in the scale of operations and overall credit metrics will be positive for the ratings. Negative: A decline in the profitability leading to deterioration in the overall credit metrics would be negative for the ratings. COMPANY PROFILE Incorporated in 1997, FO is a partnership firm engaged in the wholesale distribution of lead acid batteries, lubricants, tyre tube flap, computer, laptops, mobile, and inverters in Guwahati. It is an authorised dealer of Castrol India Ltd, Amaraja Batteries ltd, Ceat ltd (IND AA/ Stable) and Samsung India Electronics Pvt ltd. FO is managed by two of its partners Mr. Pawan Sethia and Mr. Paras Sethia with profit sharing ratio of 50% each. FLOOR GARDENS: CRISIL Reaffirms 'B' Rating on INR6MM Loan --------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Floor Gardens (FG). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing Credit 6 CRISIL B/Stable (Reaffirmed) Letter of Credit 3 CRISIL A4 (Reaffirmed) The ratings continue to reflect the firm's small scale of operations in the competitive and fragmented mattress industry, and its weak financial risk profile because of modest networth and weak gearing. These weaknesses are partially offset by the promoter's extensive experience in the home furnishings segment and the firm's established customer base. Key Rating Drivers & Detailed Description Weakness * Small scale of operations in the competitive and fragmented mattress industry FG's small scale is indicated by estimated revenue of INR15.9 crore in fiscal 2017. The home furnishings industry is fragmented, and has a large number of small unorganised players and a few large organised players such as Sheela Foam Pvt Ltd ('CRISIL A+/Stable/CRISIL A1'; maker of the leading brand Sleepwell). CRISIL expects FG's scale of operations to increase over the medium term with expansion of its marketing network and clientele, but will continue to constrain the business risk profile. * Weak financial risk profile The financial risk profile is constrained by estimated small networth of INR1.92 crore and weak gearing of 3.3 times as on March 31, 2017. Debt protection metrics for fiscal 2017 were subdued, with interest coverage ratio at 1.61 time and net cash accrual to total debt at 4% for fiscal 2017. The financial risk profile will remain weak over the medium term due to modest accretion. Strengths * Promoter's extensive industry experience and established customer base FG is promoted by Mr K A Sugathan, who has been associated with the home furnishings industry for over 40 years. Over the years, he has developed healthy relationships with customers in various countries such as Russia, the US, France, Belgium, and the Middle East, and has established a wide network of suppliers/dealers for rubber and coir-based home furnishings in these markets. The promoter's extensive experience and healthy customer relationships have helped the firm sustain revenue growth and profitability even during a difficult economic environment. Outlook: Stable CRISIL believes FG will continue to benefit from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if a significant increase in net cash accrual, through revenue growth and better profitability strengthens, the financial risk profile. The outlook may be revised to 'Negative' if the financial risk profile is constrained on account of considerable decline in cash accrual, or if working capital management weakens. Set up in 2007, FG manufactures coir-based home furnishings. The firm is based in Allepey, Kerala. Daily operations are managed by Mr K A Sugathan. The firm reported net profit of INR0.18 crores on sales of INR15.07 crores in fiscal 2016, vis-a-vis net profit of INR0.23 crores on net sales of INR15.18 crores in fiscal 2015. GANGA FABRICS: CRISIL Lowers Rating on INR6MM Cash Loan to B ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Ganga Fabrics (GF) for obtaining information through letters and emails dated January 20, 2017, and February 10, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave this rating: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB-/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Ganga Fabrics. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Ganga Fabrics is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. GF is a partnership firm that knits and processes yarn into fabric. The firm was previously managed as a proprietorship concern and got registered as a partnership firm in December 2011. The firm is managed by its partners Mr. Ashok Kumar Ahuja and Mr. Abhay Kumar Ahuja. GOLCHHA ENTERPRISES: CRISIL Lowers Rating on INR2.5MM Loan to B --------------------------------------------------------------- CRISIL has been consistently following up with Golchha Enterprises Private Limited (GEPL) for obtaining information through letters and emails dated January 23, 2017 and February 13, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave this rating: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 2.5 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') Foreign Letter of 9.0 CRISIL A4 (Issuer Not Credit Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Golchha Enterprises Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Golchha Enterprises Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the long term rating at 'CRISIL B/Stable' and reaffirmed the short term rating at 'CRISIL A4'. GEPL was incorporated in 2007, promoted by the Golchha family. The Jamshedpur (Jharkhand)-based company trades in various chemicals, minerals, ferroalloys, and metals in the domestic market. HARIT FABTEX: CRISIL Lowers Rating on INR16MM Term Loan to B ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Harit Fabtex India Private Limited (HFPL) for obtaining information through letters and emails dated January 31, 2017 and February 24, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB/Stable') Standby Line of Credit 1 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB/Stable') Term Loan 16 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Harit Fabtex India Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Harit Fabtex India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with Crisil B Rating category or lower.' Therefore, on account of inadequate information and lack of management co-operation, CRISIL is downgraded the rating at 'CRISIL B/Stable'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of HFPL, Harit Textile (HT), Jai Bhawani Furnishing Pvt Ltd (JBFPL), and JB Decor (JBD). This is because all the entities, collectively referred to as the Harit group, are engaged in a common business, and have common promoters and clientele, and operational linkages. For the previous rating exercise, CRISIL had initially combined the business and financial risk profiles of only HFPL, JBFPL and HT. CRISIL has changed the analytical approach following the group management's strong articulation of common management and operational linkages among the four entities. HFPL incorporated in 2005 is promoted by Mr. CK Mishra and his sons Mr. Krishnagopal Mishra and Mr. Pankaj Mishra. HT was set up in 2003 as a proprietorship concern of Mr. Krishnagopal Mishra. Both these entities manufacture grey fabric for furnishing purposes. JBFPL, incorporated in September 2011, is engaged in conversion of grey fabric into curtains and other furnishing products such as bed sheets and pillow covers. JBD was incorporated as a proprietorship in 2012 by Ms. Devyani Mishra. JBD retails home furnishing items. HARIWANSH PACKAGING: CRISIL Cuts Rating on INR7.25MM Loan to B -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Hariwansh Packaging Private Limited (HPPL) for obtaining information through letters and emails dated January 23, 2017 and February 13, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.25 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') Term Loan 7.25 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Hariwansh Packaging Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Hariwansh Packaging Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. HPPL manufactures corrugated boxes used in industries such as fast-moving consumer goods, explosives, and textiles. It is promoted by Mr. Vijay Murarka, who has experience of about 30 years in the business. The company's facilities are in Nagpur (Maharashtra). HOWRAH GASES: CRISIL Lowers Rating on INR12MM Cash Loan to BB ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Howrah Gases Limited (HGL) for obtaining information through letters and emails dated January 27, 2017 and February 22, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 (Issuer Not Cooperating; Downgraded from 'CRISIL A4+') Cash Credit 12 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB/Negative') Corporate Loan 2.85 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB/Negative') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Howrah Gases Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Howrah Gases Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B Rating category or lower.' Based on the last available information, CRISIL has downgraded the rating to CRISL B/Stable/CRISL A4 Incorporated in 1985, HGL is promoted by the Kolkata-based Agrawal family. The company initially manufactured only industrial and medical oxygen but subsequently started producing sponge iron and ingots. Currently, it manufactures mild steel sponge iron. JAIPRAKASH ASSOCIATES: Lenders Approve Loan Recast Plan ------------------------------------------------------- Business Standard reports that lenders have spared Jaiprakash Associates from insolvency proceedings after clearings its loan recast package. However, group company Jaypee Infratech is set to be referred to the National Corporate Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). Lenders have approved in principle the debt recast for Jaypee group flagship Jaiprakash Associates and issued a formal clearance on June 22, the report says. The draft recast plan had been circulated among the lending banks, bankers said, Business Standard relates. Jaiprakash Associates Limited is a diversified infrastructure company. The Company's principal business activities include engineering, construction and real estate development, and manufacture of cement. Its segments include Construction, which includes civil engineering construction/engineering, procurement and construction (EPC) contracts/expressway; Cement, which includes manufacture and sale of cement and clinker; Hotel/Hospitality, which includes hotels, golf course, resorts and spa; Sports Events, which includes sports-related events; Real Estate, which includes real estate development; Power, which includes generation and sale of energy; Investments, which includes investments in subsidiaries and joint ventures for cement, power, expressway and sports, among others, and Others, which includes coal, waste treatment plant, heavy engineering works, hitech castings and man power supply, among others. It has operations in Haryana, Madhya Pradesh, Gujarat and Jharkhand, among others. JYOTI HOSPITAL: CRISIL Reaffirms B- Rating on INR9MM Term Loan -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Jyoti Hospital Private Limited (JHPL) for obtaining information through letters and emails dated January 27, 2017 and February 22, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Overdraft 3 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 9 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Jyoti Hospital Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Jyoti Hospital Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at CRISIL B-/Stable. JHPL, incorporated in 1994, is promoted by Dr. A K Bansal, his wife Dr. Vandana Bansal, and Dr. Arpit Bansal. It manages the multi-speciality, 500-bed Jeevan Jyoti Hospital in Allahabad (Uttar Pradesh), which has departments for orthopaedics, gynaecology, neurology, dental, paediatrics, plastic surgery, minimally invasive surgeries, and laparoscopic surgeries. KANAN KNITWEAR: CRISIL Cuts Rating on INR10MM LT Loan to B ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Kanan Knitwear (KKW) for obtaining information through letters and emails dated January 23, 2017 and February 13, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.5 CRISIL B/Stable/(Issuer Not Cooperating; Downgraded from 'CRISIL BB+/Stable') Foreign Bill Purchase 2.0 CRISIL A4 (Issuer Not Cooperating; Downgraded from 'CRISIL A4+') Packing Credit 9.5 CRISIL A4 (Issuer Not Cooperating; Downgraded from 'CRISIL A4+') Proposed Long Term Bank Loan Facility 10.0 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Kanan Knitwear. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Kanan Knitwear is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable/CRISIL A4'. KKW was established in 1974 by Mr. Pradeep Mehta. The firm, based in Mumbai, trades in fabric, which contributes 75 per cent to its revenue. KKW also manufactures and exports ready-made garments to France and the United Arab Emirates, which constitute 25 per cent of its revenue. KKW also operates a windmill of 0.625 megawatt in Jaisalmer (Rajasthan). KOHINOOR CTNL: Edelweiss Seeks to Wind Up Property Developer ------------------------------------------------------------ Economic Times reports that Edelweiss Asset Reconstruction Company has dragged Kohinoor CTNL Infrastructure, a Mumbai-based property developer, to the court proposing to wind up the defaulting borrower. According to the report, the National Company Law Tribunal (Mumbai Bench) has admitted a case for bankruptcy as the property developer has defaulted on a INR50.97-crore outstanding loan, originally lent by Andhra Bank, which later sold off the loan to Edelweiss ARC. Insolvency cases, now billed as a panacea for banks saddled with bad loans, got a boost after the Reserve Bank of India had last month identified a dozen of defaulting accounts for bankruptcy proceedings, ET states. ET says Kohinoor CTNL Infrastructure has defaulted in repaying the principal and interest on term loans since March, 2015. "It is evident that the corporate debtor defaulted in making payments and also placed the name of the insolvency resolution professional to act as interim resolution professional, having this bench noticed that default has occurred," the report quotes tribunal bench as saying while admitting Edelweiss ERC's petition. The bench, comprising V Nallasenapathy, member - technical, and B S V Prakashkumar, member - judicial, has appointed Sripatham V Ramkumar from Hyderabad as an interim insolvency resolution professional to take up matters relating to insolvency processes, the report discloses. ET says Kohinoor CTNL Infrastructure has admitted the non-repayment of loan and cited delay in project completion - which led to increase in interest cost during construction period and escalation in construction cost substantially - as reason behind the default. In 2010, lenders including Andhra Bank entered into a common loan agreement with the company, sanctioning much larger sum than the default amount. Andhra Bank alone granted a term loan of INR93.75 crore, adds ET. Based in Mumbai, India, Kohinoor CTNL Infrastructure Company Private Limited develops real estate properties. Kohinoor CTNL operates as a subsidiary of Kohinoor Group. LIFE STYLE: CRISIL Lowers Rating on INR5MM Cash Loan to B --------------------------------------------------------- CRISIL Ratings has been consistently following up with Life Style Properties Private Limited (LSP) for obtaining information through letters and emails dated January 20, 2017 and February 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB-/Stable') Proposed Long Term 5 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Downgraded from 'CRISIL BB-/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Life Style Properties Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Life Style Properties Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. LSP is promoted by Mr. Partho Biswal and Mr. Asthika Biswal and was set up in 2009 in Bhubaneswar. The company is a real estate developer, executing construction of residential buildings in Odisha. LOHR INDIA: CRISIL Reaffirms 'D' Rating on INR9.5MM cash Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Lohr India Automotive Private Limited (LIAPL) for obtaining information through letters and emails dated January 19, 2017, and February 9, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9.5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 3.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Lohr India Automotive Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Lohr India Automotive Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. The TSI group was established in 2006 and manufactures carriers used in logistic services. It manufactures tippers and trailers under TSIPL, car and truck carriers under LIAPL, and refrigerated carriers under HIPL. Its promoters have industry experience of over four decades. MARUTI METAL: CRISIL Reaffirms 'D' Rating on INR13.05MM LT Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Maruti Metal Industries (MMI) for obtaining information through letters and emails dated January 23, 2017, and February 13, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 9.5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term Bank Loan Facility 13.05 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Standby Line of Credit .45 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Maruti Metal Industries. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Maruti Metal Industries is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'. MMI, based in Bhavnagar (Gujarat), is a partnership firm set up in 2003. Managed by Mr. Mahendrakumar Rana, the firm trades in non- ferrous metals such as bronze, copper, nickel, zinc, and lead. MILLIONAIRE DEVELOPERS: CRISIL Cuts Rating on INR5MM Loan to B -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Millionaire Developers (MD) for obtaining information through letters and emails dated January 20, 2017 and February 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave this rating: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 5 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Downgraded from 'CRISIL BB/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Millionaire Developers. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Millionaire Developers is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. MD belongs to the Galaxy Group established in 1989 by the Patel family based in Surat. The company is currently developing a residential and commercial real estate project, Galaxy Enclave, at Pal (Surat). MOHAK WOOLLENS: CRISIL Reaffirms 'B' Rating on INR4.65MM Loan ------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Mohak Woollens Private Limited (MWPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .67 CRISIL A4 (Reaffirmed) Cash Credit 4.65 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 3.37 CRISIL B/Stable (Reaffirmed) Proposed Term Loan 1.12 CRISIL B/Stable (Reaffirmed) Term Loan 2.69 CRISIL B/Stable (Reaffirmed) The ratings reflect modest scale of operations in the highly fragmented polar blankets manufacturing industry and weak financial risk profile due to high gearing and muted debt protection metrics. These weaknesses are partially offset by promoters' extensive experience and funding support. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in the intensely competitive polar blankets industry: Intense competition in the blanket manufacturing industry restricts scale and profitability (revenue and operating margin were at INR28.1 crore and 6.2%, respectively, in fiscal 2016). The scale is estimated at INR21.5 crore for fiscal 2017. * Weak financial risk profile: The financial risk profile has remained weak as reflected in gearing of 2.3 times as on March 31, 2016, interest coverage of 1.6 times and net cash accrual to total debt ratio of 0.09 time during fiscal 2016, due to high dependence on bank lines to meet working capital requirement and term loan availed towards setting up of its plant. Strengths * Promoters' extensive experience and funding support: Benefits from the promoters' experience of over three decades, and their established relationships with customers and local suppliers, and keen grasp of market dynamics should continue to support the business risk profile. Furthermore, promoters have extended need- based funding support as reflected in unsecured loans of INR3.7 crore as on March 31, 2016, which is estimated to have increased to INR4.4 crore as on March 31, 2017. Outlook: Stable CRISIL believes MWPL will continue to benefit from the promoters' extensive experience and funding support. The outlook may be revised to 'Positive' in case of significant improvement in operating profitability or working capital management, strengthening the financial risk profile. Conversely, the outlook may be revised to 'Negative' if decline in profitability level or more-than-expected reliance on debt for working capital requirement leads to deterioration in the financial risk profile. Established in 2014, MWPL, set up by Mr. Padam Jain and his family, manufactures polar fleece fabric for polar blankets and other materials, with an existing installed capacity of 8 tonne per day at Panipat (Haryana). MWPL reported a net profit of INR0.11 crore on sales of INR28.1 crore for fiscal 2016, against INR0.10 crore and INR27.0 crore, respectively, for fiscal 2015. Sales are estimated at INR21.5 crore for fiscal 2017. ODYSSEY ADVANCED: Ind-Ra Rates BB- Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Odyssey Advanced Telematics Systems (OATS) Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR80 mil. Fund-based limit assigned with IND BB-/Stable rating; and -- INR19 mil. Non-fund-based limit assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect OATS' moderate scale of operations and credit metrics. Revenue of the firm was INR323million in FY17 (FY16: INR248 million), gross interest coverage (operating EBITDAR/gross interest expense) was 2.4x (2.4x), and net financial leverage (total adjusted net debt/operating EBITDAR) was 2.4x (3.3x). EBITDA margin stood at 9.7% during FY17 (FY16:11.9%). FY17 financials are provisional. The ratings are constrained by OATS' tight liquidity position as reflected in 98% utilisation of the fund-based limit during the 12 months ended May 2017. The ratings are further constrained by proprietorship nature of business. The ratings, however, are benefited from the firm's decade-long association with large telecom companies such Vodafone Mobile Services Limited (IND AAA/RWE) and Bharat Sanchar Nigam Ltd among others. RATING SENSITIVITIES Positive: Improvement in scale of operations along with improvement in credit metrics will be positive ratings. Negative: Any deterioration in liquidity profile will be negative for the ratings COMPANY PROFILE OATS was set up in 1993 as a proprietorship concern. The firm provides operations and maintenance services for the telecommunications sector. OATS is also engaged in civil construction, and executes orders issued by different entities such as Odisha Power Transmission Corporation limited. OM AGROENERGY: CRISIL Assigns 'B' Rating to INR7.85MM LT Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Om Agroenergy Private Limited (OAE). The rating reflects the company's modest scale of operations in the highly fragmented edible oil industry, and its weak financial risk profile. These weaknesses are partially offset by the extensive industry experience of its promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 7.85 CRISIL B/Stable Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations: As the company started commercial production only in October 2016, its scale of operations is small, indicated by estimated revenue of INR28 crore in fiscal 2017, in comparison to the industry. * Weak financial risk profile: The capital structure is likely to remain subdued during the initial years, until operations stabilise. The gearing is expected above 3 times over the medium term. Strength * Extensive experience of the promoters in the agricultural industry: The promoter family has been in the agricultural business for more than 50 years through group companies Outlook: Stable CRISIL believes OAE will continue to benefit from its promoters' extensive experience in the edible oil industry. The outlook may be revised to 'Positive' if there is a significant increase in revenue and profitability, leading to higher net cash accrual. The outlook may be revised to 'Negative' if the financial risk profile weakens because of a sharp decline in revenue and profitability, or large, debt-funded capital expenditure, or diversification into unrelated businesses. OAE manufactures rice bran oil and mustard oil in Maharajganj, Uttar Pradesh. OAE was set up in 2013 but started operations in October 2016. The company is promoted by Mr. Murli Manohar Jaiswal, Mr. Sudhakar Jaiswal, Mr. Devendra Kumar Jaiswal, and Mr. Vipin Kumar Jaiswal. PAREKH PLASTICS: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Parekh Plastics (PP) for obtaining information through letters and emails dated November 28, 2016, and January 17, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Foreign Exchange .25 CRISIL A4 (Issuer Not Forward Cooperating; Rating Reaffirmed) Long Term Loan .31 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term .34 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Parekh Plastics. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Parekh Plastics is consistent with 'Scenario 3' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4'. PP was incorporated in 1985 by Mr. Ankur Parekh, Mrs. Jyothi Parekh, Mr. Ajay Parekh and Mr. Rajesh Parekh as a partnership firm. The firm manufactures plastic buckets for use in industries such as paints & emulsions, pharmaceuticals, inks, adhesives and agro chemicals. PRABIR FOODSTUFF: CRISIL Reaffirms 'D' Rating on INR15MM Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Prabir Foodstuff Factory (PFF) for obtaining information through letters and emails dated January 20, 2017 and February 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Warehouse Financing 15 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Prabir Foodstuff Factory. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Prabir Foodstuff Factory is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at CRISIL D/CRISIL D. PFF, set up in 2005 by Mr. Kuljit Singh, mills and sorts basmati and non-basmati rice. It sells its rice under the brands Victoria, 777, KR, and Flying Horse. The firm has a rice milling and sorting facility in Amritsar (Punjab), with a capacity of 12 tonnes per hour. PRATHAMESH LAND: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Prathamesh Land Developers' (PLD) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR349.9 mil. (reduced from INR512.6 mil.) Long-term loan due on September 2019 affirmed with IND BB+/Stable rating. KEY RATING DRIVERS The affirmation reflects the reduced risk of time and cost overrun in PLD's three ongoing residential projects, Sethia Sea View, Sethia Green View and Sethia Link View, as 98.26% of the total construction of all the three projects is completed. Sethia Sea View is likely to be completed by December 2017 and for the rest two projects the construction work has been completed. The ratings continue to be constrained by the partnership structure of the firm. The ratings however continue to be supported by the over 10 years of experience of PLD's promoter in the real estate sector and the projects strategic location in Goregaon, West, a suburb in Mumbai, close to schools, colleges, markets etc. The ratings are also supported by 87.33% (400 flats) of the three projects having already been sold out. RATING SENSITIVITIES Positive: Timely completion of the projects within the projected cost outlay will be positive for the ratings. Negative: Any slowing down in bookings leading to a cash flow shortfall will be negative for the ratings. COMPANY PROFILE PLD is a registered partnership firm, founded in 2004. The firm is promoted by Basantraj Meghraj Sethia. Sethia has completed several residential and commercial projects in the past under the Sethia Group. The construction of the firm's residential projects started in 2014. The total area of the projects is 362,305 sf. The project land belongs to Adivasi Sahakari Ghar Bandhakam Sanstha Maryadit. R S PAPER: CRISIL Reaffirms 'B' Rating on INR4.4MM Term Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with R S Paper (RSP) for obtaining information through letters and emails dated January 20, 2017 and February 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.6 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Packing Credit in 3.0 CRISIL A4 (Issuer Not Foreign Currency Cooperating; Rating Reaffirmed) Term Loan 4.4 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of R S Paper. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for R S Paper is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable/CRISIL A4'. RSP, established in 2009 as a partnership firm, is based in Greater Noida (Uttar Pradesh). The firm manufactures textbooks, diaries, notebooks, envelopes, calendars, and other stationery items, which it sells in both domestic and global markets. Mr. Rishi Chawla and his mother Mrs. Sharda Chawla are the partners of the firm. RAAJMAHAL DEVELOPERS: CRISIL Cuts Rating on INR37MM Loan to B ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Raajmahal Developers (RMD) for obtaining information through letters and emails dated January 20, 2017, and February 10, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave this rating: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 37 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Raajmahal Developers. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Raajmahal Developers is consistent with 'Scenario 3' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower. Based on the last available information, CRISIL has downgraded the rating at 'CRISIL B/Stable'. Established in 2013, RMD is engaged in the construction of real estate projects both residential and commercial. The firm is based out of Surat and managed by Mr. Ramesh Gupta, Mr. Ramanuj Bhattar and Mr. Akhil Bhattar. RIM JHIM: CRISIL Reaffirms 'B' Rating on INR179.5MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has been following up with Rim Jhim Ispat Limited (Rim Jhim) for getting information through letters and emails, dated April 28, 2017 and May 15, 2017 apart from various telephonic communication. However, the issuer has continued to be non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 179.5 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 121.75 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 11.47 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 37.28 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders, and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or the strategic intent of (Rim Jhim). This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Rim Jhim is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL B Rating category or lower.' Therefore, on account of inadequate information and lack of management co-operation, CRISIL is reaffirming the rating at 'CRISIL B/Stable/CRISIL A4' Rim Jhim, a closely held company, was incorporated in 1994 and commenced commercial operations in 1996. It manufactures SS products such as billets, flats, rounds, and bright bars. Its manufacturing facility in Hamirpur, Uttar Pradesh, has capacity of 250,000 tonne per annum. Mr. Yogesh Kumar Agarwal, Mr. Rajeev Kumar Goel, and Mr. Chetan Prakash Agarwal manage operations. S.V. CHEM: CRISIL Assigns B+ Rating to INR3.0MM Cash Loan --------------------------------------------------------- CRISIL Ratings has assigned 'CRISIL B+/Stable/CRISIL A4' ratings to the long-term bank facilities of S.V. Chem Intermediates Private Limited (SVC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Facility 1.39 CRISIL B+/Stable Term Loan 0.70 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 1.33 CRISIL B+/Stable Letter of Credit 1.00 CRISIL A4 Bank Guarantee .08 CRISIL A4 Cash Credit 3.00 CRISIL B+/Stable The ratings reflect the susceptibility of operating margin to risks related to volatility in raw material prices and intense competition in intermediate chemicals segment, working capital intensive operations and the below-average financial risk profile marked by small networth and high gearing. These weaknesses are partially offset by its established regional presence in intermediate chemicals segment, supported by extensive experience of promoters and long-standing relationships with key customers. Key Rating Drivers & Detailed Description Weaknesses * Exposure to volatility in raw material prices and intense competition: Operating margin is highly susceptible to volatility in the prices of raw material, which include various chemicals such as amino acid. Profitability stood at 9.8-16.8% over the five years ended March 31, 2017. Furthermore, the intermediate chemical segment is intensely competitive with the presence of numerous small and mid- size, and a few large players, thereby constraining the company's pricing ability. * Working capital intensive operations: Operations are working capital intensive as reflected in gross current assets (GCAs) estimated at 184 days of sales as on March 31, 2017, driven by debtors and inventory days of 90 and 90- 120, respectively. However, working capital cycle is supported by the 90 days of credit received from suppliers. * Below-average financial risk profile: Networth is estimated at INR3.1 crore as on March 31, 2017, due to modest scale of operations and operating profitability. Gearing is high estimated at 2.35 times. Debt protection metrics are marked by interest coverage and net cash accrual to total debt (NCATD) ratios of 2.21 times and 0.11 time, respectively, during fiscal 2017. Strength * Established regional presence in intermediate chemicals segment: The promoters ' two-decade long experience in manufacturing bulk drug intermediaries and healthy relationships with key customers has enhanced SVC's scale of operations, as indicated by a healthy compound annual growth rate of 21% in turnover over the four years ended March 31, 2017; on the back of repeat orders from existing customers and addition of new clients. Outlook: Stable CRISIL believes SVC will benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if revenue and profitability increase and financial risk profile improves. The outlook may be revised to 'Negative' if decline in revenue and operating margin, or stretch in working capital cycle or sizeable debt-funded capital expenditure weakens financial risk profile. Established in 2005 and based in Tamil Nadu, SVC manufactures intermediate chemicals for application in manufacture of active pharma ingredients. The promoters, Mr Radhakrishnan and his wife Mrs Lakshmi Radhakrishnan, have over two decades of industry experience and manage operations of the company. The company had a profit after tax of INR 16.86 lakh and operating income of INR15.98 crore for fiscal 2016 against INR71.72 lakh and INR12.43 crore the previous fiscal. SHREE RAJARAM: CRISIL Reaffirms 'B' Rating on INR10MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed 'CRISIL B/Stable' rating on the long-term bank facility of Shree Rajaram Mills (SRM) Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B/Stable (Reaffirmed) The rating continues to reflect SRM's average financial risk profile because of a small networth and subdued debt protection metrics, modest scale and working capital-intensive operations in the highly fragmented and competitive textile processing industry. These weaknesses are partially offset by the extensive industry experience of promoters and their established relations with customers. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in the competitive textile processing industry Revenue declined in fiscal 2017 vis-a-vis fiscal 2016 owing to closure order given for processing units by National Green Tribunal driven by the complaint from farmers regarding water pollution. This led to getting processing done through job workers while finishing and packaging work were done in house. Further, over the five years through fiscal 2017, scale remained modest at INR30-53 crore because the textile processing industry is intensely competitive. Revival in scale of operation and profitability remains a critical factor. * Working capital-intensive operations Gross current assets are estimated at 201 days as on March 31, 2017, because of large receivables and inventory. Working capital is partly supported by credit from suppliers. Operations are expected to remain working capital intensive over the medium term. * Average financial risk profile Financial risk profile has remained average because of modest networth estimated at INR5.97 crore and average gearing of 1.63 times as on March 31, 2017. Interest coverage remained subdued at about 1.3 times in fiscal 2017, in line with historical trend. Strengths * Proprietor's experience and established relationship with customers The proprietor, Mr. Suresh Chand Gupta, and his family have been in the textile industry for over three decades. Their experience and understanding of market opportunities and dynamics helped establish healthy relationship with customers resulting in consistent demand for products. Outlook: Stable CRISIL believes SRM will continue to benefit from the proprietor's experience and established relation with customers. The outlook may be revised to 'Positive' if revenue and profitability improve, leading to higher-than-expected cash accrual, and improved debt protection metrics. Conversely, the outlook may be revised to 'Negative' if lower-than-expected cash accrual, stretched working capital cycle, or large debt-funded capital expenditure weakens financial risk profile and liquidity. Established in 2007, SRM is a proprietorship firm of Mr. Suresh Chand Gupta. The firm bleaches, dyes and prints narrow-width fabric. Its processing facility is in Pali, Rajasthan with installed capacity of 70,000 metre per day. Profit after tax is INR0.18 crore on operating income of INR51.95 crore for fiscal 2016, against INR0.24 crore and INR43.20 crore, respectively, for fiscal 2015. SIR SHADI: CRISIL Raises Rating on INR71MM Cash Loan to 'B' ----------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities Sir Shadi Lal Enterprises Limited (SSLEL) to 'CRISIL B/Stable' from 'CRISIL C'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 71 CRISIL B/Stable (Upgraded from 'CRISIL C') Proposed Long Term Bank Loan Facility 40.45 CRISIL B/Stable (Upgraded from 'CRISIL C') SEFASU Loan 18.55 CRISIL B/Stable (Upgraded from 'CRISIL C') Working Capital 70.00 CRISIL B/Stable (Upgraded Term Loan from 'CRISIL C') The upgrade reflects improvement in the business risk profile with healthy revenue growth of 43% in fiscal 2017 supported by increased sugar prices. Improved realisations, along with better recovery rate, resulted in improved operating margin in fiscal 2017. The business risk profile is expected to remain steady with moderate revenue growth expected over the medium term with operating margin likely to be sustained. On account of improving profitability, debt protection metrics have improved, with interest coverage and net cash accrual to total debt ratios of 2.1 times and 0.11 time, respectively, in fiscal 2017, against 1.1 times and 0.03 time, respectively, in fiscal 2016. Improving accrual is further expected to support debt coverage indicators over the medium term. Working capital intensity also improved with reduction in gross current assets to 158 days as of March 2017, from 298 days as of March 2016, supported by better inventory management. Given nil major capex plans for the medium term, no large debt obligation is expected for the period. Liquidity is supported by sufficient cushion between accrual and repayment, moderate bank limit utilisation and need-based funding support from promoters. The rating remains constrained by working capital-intensive operations, stretched capital structure with significant accumulated losses and exposure to regulatory risk in the sugar industry. These weaknesses are partially offset by promoters' extensive experience in the sugar industry and funding support. Key Rating Drivers & Detailed Description Weakness * Adverse networth with significant accumulated losses: The capital structure remains stretched, with negative networth of INR33.02 crore as on March 31, 2017, owing to high losses incurred in the past. * High degree of regulatory risk in the sugar industry: The sugar industry is highly regulated with controls on both pricing/supply of sugarcane, and sale of sugar. Consequently, the credit quality of domestic players continues to hinge on sugarcane price regulations, the export-import policy, and Government of India's (GoI's) sugar release mechanism. * Working capital-intensive operations: Working capital requirement is large, with gross current assets of 158 days as on March 31, 2017, with inventory of 159 days. Strengths * Promoters' extensive experience: The promoters have gained significant experience in the sugar industry through their association with this company, and have developed good relations with customers and suppliers. * Need-based funding support from promoters: The promoters have supported the company in the form of unsecured loans which stood at INR13.55 crore as on March 31, 2017. In fiscal 2017, the promoters infused additional unsecured loans of up to INR3.0 crore and their support is expected to continue in case of exigencies. Outlook: Stable CRISIL believes SSLEL will continue to benefit over the medium term from its promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if substantial cash accrual and efficient working capital management strengthen the financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of a significant decline in operating profitability or deterioration in working capital management, leading to pressure on liquidity and capital structure. SSLEL was established in 1933 by Sir Shadi Lal. The company manufactures sugar and alcohol at its facilities in Shamli, Uttar Pradesh. The company is listed on the Bombay Stock Exchange. SSLEL had a net profit of INR17.95 crore on net sales of INR394.89 crore in fiscal 2017, against INR2.01 crore and INR250.25 crore, respectively, in fiscal 2016. SPERRY INTERNATIONAL: CRISIL Assigns 'B' Rating to INR12MM Loan --------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the long term bank facility of Sperry International Private Limited (SIPL; part of the Sperry group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Comfort 12 CRISIL B/Stable The ratings reflect the group's weak financial risk profile, constrained by eroded networth on the back of continued losses and leveraged capital structure. Liquidity remains stretched due to low cash accrual and almost fully utilised bank lines. The ratings also factor in the group's subdued revenue growth and volatile margins. These weaknesses are partially offset by promoters' extensive industry experience and their committed support to meet the funding requirements of the group in case of exigencies. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SIPL and Sperry Plast Ltd (SPL; together referred to as the Sperry group) as SIPL is a subsidiary of SPL and both companies are in a similar business, and have financial linkages and a common management. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile The networth, estimated at INR25 lakh as on March 31, 2017, has been eroded due to continuous losses incurred till fiscal 2016. Consequently, the leverage has been aggressive. Furthermore, the debt protection metrics were weak due to losses incurred. Liquidity is also stretched as reflected in fully utilised bank lines and expectation of barely sufficient cash accrual to meet debt obligation. * Subdued revenue growth and volatile margin Operating income declined to INR164.39 crore in fiscal 2016 from INR226.60 crore in the previous fiscal due to raw material price fluctuation and intense competition. Although it displayed marginal growth in fiscal 2017, at an estimated INR174.59 crore, the sustenance of growth remains to be seen. The operating margin has also been volatile. Sustained revenue growth and better operating margin are essential for turning around of operations. * Working capital-intensive operations Gross current assets are estimated at 185 days as on March 31, 2017, due to large receivables and inventory of 72 days and 91 days, respectively. The gross current assets are likely to remain at 170-190 days over the medium term. The bank limits remain near to full utilised to fund working capital requirement. Strengths * Promoters extensive experience and funding support Benefits from the promoters' extensive experience of around three decades in manufacturing of thermoplastic rubber compound, plastic moulded components, and expanded polystyrene (EPS) foam will continue to support the business risk profile. Furthermore, they have continued their funding support by infusing equity, extending unsecured loans, and reducing overall debt burden by selling out additional personal properties as well as idle group assets. Promoters' committed stance to infuse fresh funds to meet urgent business requirement of the group partly cushions liquidity. * Improved operating profitability Operating profitability is estimated to have improved to 12.1% in fiscal 2017 from 11.1% in fiscal 2015 and 4.2% in fiscal 2015 on the back of discontinuation of low-margin CPVC pipes business and efficient management of overhead expenses, and the margin is expected to improve over the medium term. Outlook: Stable CRISIL believes the Sperry group's financial risk profile will remain constrained by low cash accrual and a leveraged capital structure. Nonetheless it will benefit from the promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if revenue and profitability improve significantly, leading to sizable improvement in cash accrual. The outlook may be revised to 'Negative' in case of further deterioration in revenue and/or lower-than-expected margin, considerable working capital requirement, further weakening the financial risk profile and liquidity. SIPL Incorporated in December 2004, SIPL is a subsidiary of SPL (holding 80.03% stake) which has invested in Sperry Wictor SRL, Italy (100% subsidiary of SIPL - which is into manufacturing of adhesives). SIPL is promoted by Mr Vikram Jain. SPL Incorporated in April 1992, SPL is a closely held company promoted by Mr Vikram Jain and his family. It manufactures thermoplastic rubber compound, plastic moulded components, and expanded polystyrene (EPS) foam. It has its four manufacturing facilities in Greater Noida (2 units), Chennai and Jammu. Revenue of the Sperry group is estimated at INR174.59 crore and net profit at INR0.09 crore for fiscal 2017, against operating income of INR164.39 crore and net loss of INR15.83 crore for fiscal 2015. SPERRY PLAST: CRISIL Assigns B Rating to INR100MM Term Loan ----------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Sperry Plast Limited (SPL; part of the Sperry group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 100 CRISIL B/Stable Cash Credit 50 CRISIL B/Stable Letter of Credit 25 CRISIL A4 The ratings reflect the group's weak financial risk profile, constrained by eroded networth on the back of continued losses and leveraged capital structure. Liquidity remains stretched due to low cash accrual and almost fully utilised bank lines. The ratings also factor in the group's subdued revenue growth and volatile margins. These weaknesses are partially offset by promoters' extensive industry experience and their committed support to meet the funding requirements of the group in case of exigencies. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SPL and Sperry International Pvt Ltd (SIPL; together referred to as the Sperry group) as SIPL is a subsidiary of SPL and both companies are in a similar business, and have financial linkages and a common management. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile The networth, estimated at INR25 lakh as on March 31, 2017, has been eroded due to continuous losses incurred till fiscal 2016. Consequently, the leverage has been aggressive. Furthermore, the debt protection metrics were weak due to losses incurred. Liquidity is also stretched as reflected in fully utilised bank lines and expectation of barely sufficient cash accrual to meet debt obligation. * Subdued revenue growth and volatile margin Operating income declined to INR164.39 crore in fiscal 2016 from INR226.60 crore in the previous fiscal due to raw material price fluctuation and intense competition. Although it displayed marginal growth in fiscal 2017, at an estimated INR174.59 crore, the sustenance of growth remains to be seen. The operating margin has also been volatile. Sustained revenue growth and better operating margin are essential for turning around of operations. * Working capital-intensive operations: Gross current assets are estimated at 185 days as on March 31, 2017, due to large receivables and inventory of 72 days and 91 days, respectively. The gross current assets are likely to remain at 170-190 days over the medium term. The bank limits remain near to full utilised to fund working capital requirement. Strengths * Promoters extensive experience and funding support Benefits from the promoters' extensive experience of around three decades in manufacturing of thermoplastic rubber compound, plastic moulded components, and expanded polystyrene (EPS) foam will continue to support the business risk profile. Furthermore, they have continued their funding support by infusing equity, extending unsecured loans, and reducing overall debt burden by selling out additional personal properties as well as idle group assets. Promoters' committed stance to infuse fresh funds to meet urgent business requirement of the group partly cushions liquidity. * Improved operating profitability Operating profitability is estimated to have improved to 12.1% in fiscal 2017 from 11.1% in fiscal 2015 and 4.2% in fiscal 2015 on the back of discontinuation of low-margin CPVC pipes business and efficient management of overhead expenses, and the margin is expected to improve over the medium term. Outlook: Stable CRISIL believes the Sperry group's financial risk profile will remain constrained by low cash accrual and a leveraged capital structure. Nonetheless it will benefit from the promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if revenue and profitability improve significantly, leading to sizable improvement in cash accrual. The outlook may be revised to 'Negative' in case of further deterioration in revenue and/or lower-than-expected margin, considerable working capital requirement, further weakening the financial risk profile and liquidity. SPL Incorporated in April 1992, SPL is a closely held company promoted by Mr. Vikram Jain and his family. It manufactures thermoplastic rubber compound, plastic moulded components, and expanded polystyrene (EPS) foam. It has its four manufacturing facilities in Greater Noida (2 units), Chennai and Jammu. SIPL Incorporated in December 2004, SIPL is a subsidiary of SPL (holding 80.03% stake) which has invested in Sperry Wictor SRL, Italy (100% subsidiary of SIPL - which is into manufacturing of adhesives). SIPL is promoted by Mr. Vikram Jain. Revenue of the Sperry group is estimated at INR174.59 crore and net profit at INR0.09 crore for fiscal 2017, against operating income of INR164.39 crore and net loss of INR15.83 crore for fiscal 2015. TAYO ROLLS: To Refer to NCLT for Insolvencey Resolution Process --------------------------------------------------------------- Equity Bulls reports that the board of directors of Tayo Rolls Ltd at their meeting held on July 3 has decided to refer the Company to the National Company Law Tribunal under Section 10 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process. Shares of Tayo Rolls Ltd. was last trading in BSE at Rs.60 as compared to the previous close of INR55.2, Equity Bulls discloses. The total number of shares traded during the day was 27,758 in over 174 trades, the report says. India-based Tayo Rolls Limited is a metal fabrication and processing company. Tayo Rolls is a subsidiary of Tata Steel. VIRCHAND NARSI: CRISIL Lowers Rating on INR26.5MM Loan to B ----------------------------------------------------------- CRISIL Ratings downgraded its rating on the long-term bank facility of Virchand Narsi Cotton Private Limited (VNCPL) to 'CRISIL B/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 26.5 CRISIL B/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects deterioration of operating performance marked by decline in scale of operations and stretch in working capital cycle. The decline in operating performance has also resulted in weakening of financial risk profile particularly the gearing which has deteriorated to more than 4 times over the last 2 years ended March 31, 2017. The ratings continue to reflect below average financial risk profile and working capital intensive operations. These rating weaknesses are partially offset by extensive industry experience of promoters. Key Rating Drivers & Detailed Description Weakness * Below average financial risk profile: Company has below average financial risk profile marked by modest networth and high gearing (Rs 7.95 crore and 4.31 times as on March 31, 2016). Debt protection metrics are subdued marked by interest coverage ratio of 1.1 times for fiscal 2016. * Working capital intensive operations: Company has working capital intensive operations marked by gross current assets of around 174 days as on March 31, 2017. GCA is high primarily on account of elongated debtor cycle (133 days as on March 31, 2017). Strengths * Extensive industry experience of promoters: The Dand family is engaged in cotton ginning and pressing, cotton trading and cotton seed oil extraction business for more than 4 decades through different entities. VNCPL thus benefits from the promoters' extensive industry experience and their understanding of the dynamics of the local market, and established relationship with suppliers, farmers, and customers. Outlook: Stable CRISIL believes VNCPL will continue to benefit over the medium term from the extensive experience of its promoter. The outlook may be revised to 'Positive' in case of significant increase in scale of operations and profitability, leading to improved cash accruals or in case of substantial equity infusion resulting in an improved capital structure. The outlook may be revised to 'Negative' if cash accruals decline, or in case of a further stretch in working capital resulting in deterioration of financial risk profile. Incorporated in 2002, VNCPL is engaged in ginning and pressing of raw cotton and crushing of cotton seeds. Company is promoted by Mr. Kumarpal Dand and his family. The company had a net loss of INR1.76 crore on net sales of INR172 crore in fiscal 2016, against a profit after tax of INR0.76 crore on net sales of INR222.1 crore in fiscal 2015. ========= J A P A N ========= TOSHIBA CORP: SK Hynix Demands Voting Rights in Chip Unit --------------------------------------------------------- Kyodo News reports that SK Hynix Inc. is asking for up to 33.4% of voting rights in Toshiba Corp.'s semiconductor unit as they continue talks on the sale of the business, according to sources. SK Hynix has joined a consortium chosen by Toshiba as a preferred bidder for Toshiba Memory Corp. SK Hynix would provide loans to a U.S. fund participating in the joint bid, as Toshiba is concerned it may take longer to clear antitrust reviews if a chipmaker takes a stake in the unit, Kyodo says. Western Digital Corp., Toshiba's joint chip production partner, is opposed to any sale to a third party without its consent, Kyodo notes. According to the report, cash-strapped Toshiba is rushing to raise funds by selling the chip unit so it can eliminate negative net worth by next March to avoid being delisted by the Tokyo Stock Exchange. Under the most recent plan, a Japanese government-backed fund -- the Innovation Network Corp. of Japan -- and the government-owned Development Bank of Japan aimed to take a combined 66.6 percent stake in Toshiba Memory with the rest to be owned by U.S. fund Bain Capital, the report says. Kyodo says the Japan-U.S.-South Korean consortium was organized by the Japanese government, as it is concerned about Toshiba's key technology getting into the hands of a foreign company. According to Kyodo, Toshiba President Satoshi Tsunakawa said at a news conference last month that the South Korean company will "have no voting rights and therefore technology drain will be prevented." But SK Hynix has demanded the right to acquire a portion or even the entire stake to be held by Bain Capital in the future, according to the sources. Toshiyuki Shiga, chairman of Innovation Network Corp. of Japan, told reporters on June 30 that no problems have stalled negotiations but he could not say when the deal could be sealed, the report says. Western Digital, which has jointly invested in Toshiba's Yokkaichi flash memory plant in Mie Prefecture, has asked a U.S. court to block the deal, according to the report. The U.S. company is also seeking arbitration with an international court, claiming the sale of the chip unit without its consent breaches their contract. Kyodo notes that ahead of a U.S. court hearing scheduled for July 14, Toshiba said on July 3 it has submitted a counterargument against the U.S. partner's claims to the U.S. court. Toshiba also said it will bring Swiss-based Landis+Gyr AG smart meter subsidiary public to sell its holding shares in the subsidiary as part of efforts to bolster its financial conditions, the report relates. Kyodo adds that the Japanese conglomerate said Landis+Gyr is aiming to list on the SIX Swiss Exchange by the end of September. But Toshiba said it is also considering selling Landis+Gyr and could scrap the plan to list the subsidiary if it finds a buyer. About Toshiba Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on June 19, 2017, S&P Global Ratings said it has kept its 'CCC-' long-term and 'C' short-term ratings on Japan-based capital goods and diversified electronics company Toshiba Corp. on CreditWatch with negative implications. The long- and short-term ratings on Toshiba have remained on CreditWatch with negative implications since December 2016, when S&P also lowered the long-term ratings because of a likelihood that the company might recognize massive losses in its U.S. nuclear power business. S&P kept them on CreditWatch negative when it lowered the long- and short-term ratings in January 2017 and when S&P lowered the long-term ratings in March 2017. The ratings remain on CreditWatch, reflecting S&P's view that creditor banks' support for Toshiba together with the company's liquidity levels warrant continued close monitoring because its plan to sell its memory business has yet to materialize and additional losses or financial burdens might still arise in connection with its U.S. nuclear power business. S&P continues to hold the view that without unanticipated, significantly favorable changes in Toshiba's circumstances, the company might become unable to fulfill its financial obligations in a timely manner or might undertake a debt restructuring S&P classifies as distressed in the next six months. ==================== N E W Z E A L A N D ==================== FP IGNITION 2017: Moody's Assigns B1(sf) Rating to Cl. F Notes --------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to notes to be issued by NZGT (FP) Trustee Limited in its capacity as trustee of the FP Ignition 2017 Warehouse Trust. Issuer: FP Ignition 2017 Warehouse Trust NZD275.3 million Class A Notes, Assigned Aaa (sf); NZD29.4 million Class B Notes, Assigned Aa2 (sf); NZD31.2 million Class C Notes, Assigned A2 (sf); NZD15.6 million Class D Notes, Assigned Baa2 (sf); NZD27.5 million Class E Notes, Assigned Ba1 (sf); NZD28.9 million Class F Notes, Assigned B1 (sf); The NZD28.0 million Class G Notes and NZD22.9 million Class OA2 Notes are not rated by Moody's. The transaction is a New Zealand prime asset-backed securitisation. It is a cash securitisation of operating and finance leases extended to New Zealand corporates and small and medium-sized businesses. The leases are secured by passenger cars and commercial vehicles. The collateral pool composition is revolving with substitution of receivables taking place until the scheduled amortisation date in October 2017. The securitised portfolio comprises lease installment cash flows and residual value cash flows. The present value of the outstanding lease receivables balance is approximately NZD 424.4 million and the nominal value of estimated residual value cash flows amounts to around NZD 274.6 million. Due to the right of the lessees to return the vehicle at contract maturity to cover the final lease balance outstanding under an operating lease, the notes are exposed to both default and market or residual value risk of the related vehicles. RATINGS RATIONALE The definitive ratings take into account, amongst other factors, (1) an evaluation of the underlying portfolio of receivables and their expected performance (2) an evaluation of the underlying RV exposure; (3) back-up maintenance and servicer solutions; (4) the credit enhancement provided by subordination; (5) the liquidity support available in the transaction by way of principal to pay interest and the liquidity reserve fund. The transaction benefits from credit strengths such as experience of the originator, diversification of vehicle manufacturer and lease term dates and strong historical performance of the lease portfolio. However, Moody's notes that the transaction features some credit weaknesses such as high lessee concentration and RV risk. The structure will rely on monthly compliance events to ensure portfolio quality. Origination of new receivables and the continuation of the revolving period will be subject to certain parameters, including a days sales outstanding metric in respect of trust receivables which does not exceed 30 days, obligor concentration limits (with certain exceptions), a minimum gross margin, a single vehicle make concentration limit of 27.5% and the aggregate of the final expected asset values at the contract expiry date in respect of all lease receivables should not exceed 66% of the portfolio balance. The transaction is a sequential pay securitisation of auto lease contracts. MODELLING APPROACH Moody's applies a two-stage approach to modelling transactions with RV risk. In the first step, Moody's models the expected loss on the notes due to defaults. In the second step, additional losses resulting from RV risk are modelled based on the RV haircuts applied at contract maturity. For the assessment of lessee default risk Moody's has determined the lessee default distribution of the portfolio using CDOROM, which simulates lessee defaults based on asset correlations and default probabilities assumptions. Moody's assumed a mean lessee default rate of 4.46%. For cash flow modeling Moody's assumed a recovery rate following lessee default of 45% . To account for RV risk in the portfolio Moody's assumes a Aaa haircut of 45.0%; Aa2 haircut of 35.5%; A2 haircut of 30.5%; Baa2 haircut of 25.5%; Ba1 haircut of 20.0% and a B1 haircut of 12.0% on RV cash flows. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in October 2016. Factors That Would Lead to an Upgrade or Downgrade of the Ratings: Factors that could lead to an upgrade or downgrade of the note ratings include (1) an improvement or deterioration in the credit quality and performance of the collateral pool, and (2) higher or lower than expected recoveries on defaulted loans. The New Zealand economy and the market for used vehicles are primary drivers of performance. Other reasons for worse performance than Moody's expects include poor servicing, error on the part of transaction parties, a deterioration in credit quality of transaction counterparties, lack of transactional governance and fraud. Moody's Parameter Sensitivities: If the default rate rises to 5.35% (from Moody's assumption of 4.46%) then the model-indicated rating for the Notes are: Class A -- Aa1 Class B -- Aa3 Class C -- A3 Class D -- Baa3 Class E -- Ba2 Class F -- B2 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2017. 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 Joseph Cardillo at 856-381-8268. *** End of Transmission ***