/raid1/www/Hosts/bankrupt/TCRAP_Public/170807.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, August 7, 2017, Vol. 20, No. 155
Headlines
A U S T R A L I A
ANDERSON'S MECHANICAL: Second Creditors' Meeting Set for Aug. 14
AUSTINDO COMM: Second Creditors' Meeting Set for Aug. 14
BROCKWAY DICOM: Second Creditors' Meeting Set for Aug. 11
OPAL FIELDS: First Creditors' Meeting Set for Aug. 14
OROTONGROUP: To Close All Gap Stores by End of January 2018
PROJECT SUNSHINE: S&P Rates New US$225MM Term Loan B Facility 'B'
RESIMAC PREMIER SERIES 2017-2: S&P Rates Class D Notes BB (sf)
SCA TRANSPORT: First Creditors' Meeting Set for Aug. 15
SJ CRUSHING: First Creditors' Meeting Set for Aug. 10
* Australia Auto ABS Losses Continue to Remain Low in 1Q17
* Australian Mortgage Arrears Stable Despite 1Q17 Increase
C H I N A
SUNAC CHINA: Fitch Assigns BB- Rating to Proposed USD Notes
SUNAC CHINA: Moody's Assigns B3 Rating to Proposed USD Notes
* CHINA: Corporate Bankruptcies Rise Steadily in 2017
H O N G K O N G
NOBLE GROUP: MAS Responds to Iceberg Research on Comments
I N D I A
AANAV CONSTRUCTION: CRISIL Reaffirms B- Rating on INR5.5MM Loan
AJB LEATHERS: CRISIL Reaffirms 'B' Rating on INR4.40MM Cash Loan
ARUNACHALA TRADING: CRISIL Reaffirms B Rating on INR2MM Loan
AXIOM PROPACK: CARE Lowers Rating on INR46.74cr LT Loan to 'D'
BMM ISPAT: CARE Lowers Rating on INR2780.69cr Loan to 'D'
CONSORTIUM AUTOMOBILES: CRISIL Reaffirms B Rating on INR6.5M Loan
CONVEYOR AND ROPEWAY: CRISIL Reaffirms D Rating on INR4MM Loan
COSMIC FERRO: CARE Lowers Rating on INR122.05cr ST Loan to 'D'
CVS INFRA: Ind-Ra Gives BB- LT Issuer Rating, Outlook Stable
DHANLAXMI ELECTRICALS: Ind-Ra Moves Rating to BB+ Not Cooperating
EXODUS FUTURA: CRISIL Raises Rating on INR10.5MM Loan to B+
FRYSTAL PET: CRISIL Reaffirms 'B+' Rating on INR4.54MM Term Loan
GURUASHISH CONSTRUCTIONS: NCLT Admits UB's Insolvency Plea
HILTON INFRASTRUCTURE: CARE Cuts Rating on INR50cr LT Loan to D
JDC INDIA: CRISIL Reaffirms 'B' Rating on INR7.0MM Cash Loan
KANAK DEKA: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
KHANNA PROPERTIES: CRISIL Reaffirms D Rating on INR39.5MM Loan
LINIT EXPORTS: CRISIL Lowers Rating on INR2MM Loan to 'B'
MARIGOLD CONSTRUCTIONS: CRISIL Reaffirms INR9.84M Loan Rating 'D'
MIRACLE DEVELOPERS: CRISIL Reaffirms 'D' Rating on INR6MM Loan
MITTAL INFRASTRUCTURE: CRISIL Reaffirms 'B' Rating on INR6MM Loan
MY CAR: CRISIL Reaffirms 'B' Rating on INR13MM Cash Loan
OPTIMAL POWER: CRISIL Reaffirms B- Rating on INR1.85MM Loan
PEREGRINE PHOSPHATE: CRISIL Reaffirms 'B' Rating on INR1MM Loan
PRAGATI MARINE: CRISIL Reaffirms 'B' Rating on INR3.5MM Cash Loan
PSP FARMS: CRISIL Reaffirms B- Rating on INR7.5MM Cash Loan
R.Z. MALPANI: CRISIL Reaffirms 'B' Rating on INR3.75MM Loan
RADIANT LUBES: CRISIL Reaffirms B Rating on INR13.75MM Cash Loan
RAMNANDI ESTATE: CRISIL Reaffirms 'D' Rating on INR5.04MM Loan
RAMNIKLAL & SONS: CARE Lowers Rating on INR17cr LT Loan to D
RANGOLI INDUSTRIES: CRISIL Reaffirms B- Rating on INR12MM Loan
RISING SUN: CARE Reaffirms 'D' Rating on INR5.26cr LT Loan
SABITRI RICE: CRISIL Reaffirms 'C' Rating on INR9.0MM Cash Loan
SAIDEEP CARS: CRISIL Reaffirms 'C' Rating on INR3.0MM Loan
SASA MUSA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan
SATHE SYNTHETICS: CRISIL Reaffirms B+ Rating on INR12MM Loan
SCANIA STEELS: CRISIL Reaffirms 'D' Rating on INR24.43MM Loan
SENTHIL ENTERPRISES: Ind-Ra Moves Rating to 'B+ Not Cooperating'
SHERLOCK INDUSTRIES: Ind-Ra Assigns 'D' Long-Term Issuer Rating
SKC TRADING: Ind-Ra Migrates Issuer Rating to BB+ Not Cooperating
SRI CHANDRA: CRISIL Lowers Rating on INR10MM Cash Loan to 'D'
VIBHAV FARMS: Ind-Ra Migrates Issuer Rating to D Not Cooperating
VINIRRMAA PROJECTS: Ind-Ra Places Rating to 'B Not Cooperating'
N E W Z E A L A N D
A&G PRICE: Owes Creditors NZ$5.2 million, Liquidators Say
AMTEC ENGINEERING: Closes Shop Due to Insolvency; All Jobs Axed
- - - - -
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A U S T R A L I A
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ANDERSON'S MECHANICAL: Second Creditors' Meeting Set for Aug. 14
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Anderson's
Mechanical Pty Ltd trading as Anderson Plumbing Services
Australia has been set for Aug. 14, 2017, at 11:30 a.m., will be
held at the offices of HLB Mann Judd, Central Plaza Two, Level
15, 66 Eagle Street, in Brisbane, Queensland.
The purpose of the meeting is (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 Aug. 11, 2017, at 4:00 p.m.
Barry Anthony Taylor of HLB Mann Judd was appointed as
administrator of Anderson's Mechanical on July 10, 2017.
AUSTINDO COMM: Second Creditors' Meeting Set for Aug. 14
--------------------------------------------------------
A second meeting of creditors in the proceedings of Austindo
Communications Pty Ltd has been set for Aug. 14, 2017, at
10:30 a.m., will be held at Len Buckeridge Room, Adina Apartment
Hotel, 138 Barrack Street, in Perth, WA.
The purpose of the meeting is (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 Aug. 11, 2017, at 4:00 p.m.
Giovanni Maurizio Carrello of BRI Ferrier Western Australia was
appointed as administrator of Austindo Communications on July 10,
2017.
BROCKWAY DICOM: Second Creditors' Meeting Set for Aug. 11
---------------------------------------------------------
A second meeting of creditors in the proceedings of Brockway
DiCom Facility Pty Ltd and DiCOM AWT Operations Pty Ltd has been
set for Aug. 11, 2017, at 10:30 a.m., will be held at the offices
of PPB Advisory, Level 21, 140 St Georges Terrace, in Perth, WA.
The purpose of the meeting is (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 Aug. 10, 2017, at 4:00 p.m.
OPAL FIELDS: First Creditors' Meeting Set for Aug. 14
-----------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- Opal Fields Pty Limited;
-- Opal Fields Holdings Pty Limited; and
-- Opals On George Pty Limited
will be held at the offices of TPH Advisory, Lower Level, 133
Macquarie Street, in Sydney, NSW, on Aug. 14, 2017, at
10:00 a.m., 10:10 a.m., 10:20 a.m., respectively.
Tim Heesh -- tim.heesh@tphinsolvency.com.au -- of TPH Insolvency
was appointed as administrator of Opal Fields on Aug. 2, 2017.
OROTONGROUP: To Close All Gap Stores by End of January 2018
-----------------------------------------------------------
Emma Koehn and Dominic Powell of SmartCompany reports that
OrotonGroup Ltd has revealed plans to close all Gap franchise
stores by the end of January 2018, but says it is too early to
tell what the financial impact on the business will be.
SmartCompany relates that the troubled retailer informed
shareholders on Aug. 4 it has entered a binding agreement with
the brand's US parent company Gap Inc to discontinue the
franchise agreement it established in 2013.
According to SmartCompany, the company had signed a 10-year
license deal for the Gap brand, and established six stores in
Sydney and Melbourne, but faced challenges growing the local
business, which is said earlier this year had "further
deteriorated in an aggressive apparel market".
Oroton chief executive Ross Lane thanked the Australian and US
Gap teams for their "substantial efforts" to develop the brand in
Australia, the report says.
OrotonGroup Limited (ASX:ORL) -- http://www.orotongroup.com.au/-
-- is an Australia-based retail company. The Company's segments
include Oroton and Gap brands. The Company is engaged in
retailing and wholesaling of leather goods, fashion apparel and
related accessories under the OROTON brand. It is engaged in
retailing of fashion apparel under the GAP label. It is also
engaged in licensing of the OROTON brand name. The Company
operates over 80 stores across Australia, New Zealand, Singapore,
Malaysia and China. Its Gap brand includes GapKids and babyGap,
and offers wardrobe essentials. Its Oroton sells a range of
products for men and women. Oroton's offerings for women include
bags, wallets, jewelry, beauty, gifts, sunglasses and
accessories. Its offerings for men include bags, wallets,
accessories, apparel, sunglasses and gifts. The Company has a
presence as a multi-channel retailer, including online, first
retail stores, concessions, factory outlets and wholesale for
both owned brand and licensed partnerships.
PROJECT SUNSHINE: S&P Rates New US$225MM Term Loan B Facility 'B'
-----------------------------------------------------------------
S&P Global Ratings said it has assigned its 'B' issue rating and
a recovery rating of '4' to Project Sunshine IV Pty Ltd.'s
proposed US$225 million term loan B facility (guaranteed by
Project Sunshine III Pty Ltd. and each of its wholly owned
subsidiaries.).
The corporate credit rating on Project Sunshine III covers the
company and its subsidiaries, including Project Sunshine IV Pty
Ltd. and Australian directories publisher Sensis Pty Ltd.
(collectively Project Sunshine group). The issuer rating on
Project Sunshine group incorporates the group's exposure to the
structurally declining print directories market, strong and
growing competition in the online directories market, and the
group's financial sponsor ownership, with Platinum Equity
(Platinum) owning 70% of the group.
The 'B' issue rating on the proposed US$225 million term loan B
issuance reflects S&P's recovery rating assessment of '4',
indicating that it expects creditors to receive an average (45%)
level of recovery in the event of a default.
The proceeds of the issuance will be used to repay existing debt
facilities, fund a capital return to shareholders, and pay
related fees and expenses.
Ratings List
New Rating
Project Sunshine IV Pty Ltd.
Senior Secured B
Recovery Rating 4(45%)
RESIMAC PREMIER SERIES 2017-2: S&P Rates Class D Notes BB (sf)
--------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC
Premier Series 2017-2. RESIMAC Triomphe Trust - RESIMAC Premier
Series 2017-2 is a securitization of prime residential mortgages
originated by RESIMAC Ltd.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including that this is a closed portfolio, which
means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses we apply. This credit support comprises note
subordination and lenders' mortgage insurance to 28.9% of the
portfolio, which covers 100% of the face value of these
loans, accrued interest, and reasonable costs of enforcement.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity
facility equal to 0.75% of the outstanding balance of the
notes, and principal draws, are sufficient under our stress
assumptions to ensure timely payment of interest.
The extraordinary expense reserve of A$150,000, funded by RESIMAC
Ltd. before closing, available to meet extraordinary expenses.
The reserve will be topped up via excess spread if drawn.
The management of interest-rate risk. Interest-rate risk between
any fixed-rate mortgage loans and the floating-rate obligations
on the notes are appropriately hedged via interest-rate swaps
provided National Australia Bank Ltd. and Westpac Banking Corp.
A copy of S&P Global Ratings' complete report for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2017-2 can be found on
RatingsDirect, S&P Global Ratings' web-based credit analysis
system, at http://www.globalcreditportal.com.
RATINGS ASSIGNED
Class Rating Amount (A$ mil.)
A1 AAA (sf) 75.0
A2 AAA (sf) 600.0
AB AAA (sf) 34.5
B AA (sf) 21.0
C A (sf) 9.0
D BB (sf) 7.5
E NR 3.0
NR--Not rated.
SCA TRANSPORT: First Creditors' Meeting Set for Aug. 15
-------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- SCA Transport Pty Ltd;
-- SCA Trailers Pty Ltd;
-- Reid Agricultural Company Pty Ltd; and
-- Stockcrates Australia Pty Ltd
will be held at Level 12, 460 Lonsdale Street, in Melbourne, on
Aug. 15, 2017, at 11:00 a.m.
Philip John McGibbon and Sule Arnautovic of Jirsch Sutherland
were appointed as administrators of SCA Transport on Aug. 3,
2017.
SJ CRUSHING: First Creditors' Meeting Set for Aug. 10
-----------------------------------------------------
A first meeting of the creditors in the proceedings of SJ
Crushing Pty Ltd will be held at St Martins Centre Conference
Suite, Level 9, 40 St Georges Terrace, in Perth, WA, on Aug. 10,
2017, at 11:00 a.m.
Robert Michael Kirman and Robert Conry Brauer of McGrathNicol
were appointed as administrators of SJ Crushing on July 31, 2017.
* Australia Auto ABS Losses Continue to Remain Low in 1Q17
----------------------------------------------------------
Australian prime auto ABS losses improved, as arrears remained
stable year-on-year in 1Q17, says Fitch Ratings. Overall, arrears
have remained stable for the past 12 months, while the annualised
net loss rate (ANL) has remained below the five-year average of
0.48%.
In 1Q17, losses decreased 7bp to 0.42%, while 30+ days arrears
were 1.59%, up from 1.40% in 4Q16 and 1.55% in 1Q16. Loss levels
have stayed significantly below Fitch's expectations and the
agency believes current ratings can withstand increased losses.
Australian economic fundamentals remain strong, with stable
consumer sentiment, a low unemployment rate and low petrol
prices. However, Fitch believes that the lower-than-historical-
average wage growth may be a major threat to borrower
performance.
* Australian Mortgage Arrears Stable Despite 1Q17 Increase
----------------------------------------------------------
Australia's mortgage arrears increased by 12bp qoq to 1.21% at
end-1Q17, due to seasonal Christmas/holiday spending and possible
difficulties faced by consumers because of low real-wage growth.
The qoq increase in arrears from 4Q16 to 1Q17 was less than 1Q16
(16bp qoq to 1.10%).
The 30+ days arrears in 1Q17 were 11bp higher yoy, despite an
improved economic environment and lower standard variable
interest rates. Unemployment increased slightly by 2bp and real
wage growth was low, but positive. Underemployment has been
growing despite relatively stable unemployment.
Fitch Ratings expects arrears to fall in 2Q17 and 3Q17 after the
holiday season due to the current low interest rate environment
and decreasing unemployment.
Fitch-rated residential mortgage-backed securities transactions
have continued to experience extremely low levels of realised
losses since closing and an increasing lenders' mortgage
insurance (LMI) payment ratio since 4Q12. Excess spread was
sufficient to cover principal shortfalls during 1Q17.
=========
C H I N A
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SUNAC CHINA: Fitch Assigns BB- Rating to Proposed USD Notes
-----------------------------------------------------------
Fitch Ratings has assigned Sunac China Holdings Limited's (BB-
/Rating Watch Negative (RWN)) proposed US dollar senior notes a
'BB-(EXP)' expected rating on RWN.
The proposed notes, to be issued by Sunac, are rated at the same
level as Sunac's senior unsecured rating because they will
represent the company's direct and senior unsecured obligations.
The final rating is subject to the receipt of final documentation
conforming to information already received.
Sunac's rating is supported by its large scale and position among
the top-10 Chinese homebuilders by contracted sales as well as
its fast-churn business model. Its ratings are constrained by
rapidly rising leverage due to its acquisitions, which have made
its financial profile volatile. The RWN reflects the risk of
further rating downgrades because Sunac's plan to acquire some
assets of Dalian Wanda Commercial Property Co. Ltd.
(BBB/Negative) will pressure its leverage over the next year and
it is unclear if stronger contracted sales from Sunac's
aggressive expansion can help it deleverage sufficiently over
this period.
KEY RATING DRIVERS
Leverage to Stay High: Fitch believes Sunac's leverage, as
measured by net debt/adjusted inventory, will stay above 50% in
2017, after jumping to 60% as at end-2016, from 26% at end-2015
and 19% at end-2014. This is despite trimming down its planned
acquisition of Wanda's projects to CNY44 billion from CNY63
billion by dropping 76 hotel assets and the July 24, 2017 share
placement that raised net proceeds of CNY3.4 billion.
Sunac reported that its 1H17 land acquisitions, including that of
its joint ventures and associates, totalled 24 million square
metres (sqm) in gross floor area (GFA), against sales of 6
million sqm. Fitch believes the 1H17 land acquisitions will not
generate sales immediately and will be at a lower profit margin
than what is achievable from the Wanda projects. This will
pressure Sunac's leverage, although Fitch expects its land
acquisition pace to slow after the company significantly
increases its landbank with the Wanda acquisition.
Mixed Impact from Wanda Deal: Fitch expects Sunac's Wanda
projects acquisition to result in a leverage spike at end-2017.
However, Fitch expects lower leverage thereafter, along with
enhanced profit margins, as Sunac strengthens its homebuilding
business with additional landbank and entry into new high-tier
cities. Fitch estimates that average land cost of the Wanda
projects is less than CNY1,500 per sqm based on the total
acquisition costs of just under CNY60 billion, including CNY15
billion of net debt. This compares favourably with Fitch
estimated selling price of more than CNY12,000 per sqm for
completed properties.
The stronger profitability and faster cash generation from
property sales will be partly offset by the capex to build the
theme parks, hotels and shopping malls that form part of the
projects, though the impact of the high capex will be moderated
by Sunac's enlarged scale.
Diversification and Business Synergies: Sunac's property
development business may benefit from the planned Wanda
transaction by increasing Sunac's landbank by more than 80%, or
46 million sqm in GFA, by Fitch estimates. Sunac's geographical
diversification will also improve, as the majority of the Wanda
City projects are in the provincial capitals of new tier 2
cities. The projects will also bring in recurring rental income
that will increase steadily over the next five years.
Strong Contracted Sales: Sunac reported a 107% year-on-year
increase in attributable contracted sales in 1H17, following a
139% increase over 2016, reflecting its high sales efficiency and
supplementing the company's cash position. Contracted sales GFA
increased by 102% and average selling prices fell by 6% in 1H17,
against a backdrop of slowing property sales nationwide.
Post-Acquisition Financial Profile: The RWN will be resolved
after Fitch evaluates how Sunac's financial profile will develop
after the Wanda acquisition is completed. The possible outcomes
following the resolution of the RWN are discussed in "Rating
Sensitivities".
DERIVATION SUMMARY
Sunac's homebuilding business scale, geographical
diversification, project execution record and churn rates are
comparable with those of Country Garden Holdings Co. Ltd.
(BB+/Stable) and superior to those of Beijing Capital Development
Holding (Group) Co., Ltd. (BBB-/Stable; standalone BB/Stable) and
Guangzhou R&F Properties Co. Ltd. (BB/RWN). However, Sunac has a
more volatile financial profile, which is more comparable with
that of lower-rated issuers like Greenland Holding Group Company
Limited (BB/Negative; standalone BB-/Negative) and China
Evergrande Group (B+/Stable).
KEY ASSUMPTIONS
Fitch's key assumptions within Fitch ratings case for the issuer
include:
- maintaining a land replenishment rate (GFA acquired/GFA sold)
of around 1.5x-2.0x for long-term development
- increasing margin pressure from 2018, with EBITDA margin
dropping to between 15% and 20%
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Negative Rating Action;
- If the transaction takes place and after reviewing the
transaction information, Fitch may downgrade Sunac's rating if
net debt/adjusted inventory exceeds 50% for a sustained period
and attributable contracted sales/total adjusted debt falls
below 0.8x for a sustained period.
Developments that May, Individually or Collectively, Lead to
Positive Rating Action;
- If the transaction takes place and after reviewing transaction
information, Fitch may affirm the rating with a Negative
Outlook if net debt/adjusted inventory exceeds 50% over the
next 12 months but Fitch expects the ratio to be sustained
below 50% thereafter.
- If the transaction does not take place, the ratings may be
affirmed with a Stable Outlook.
LIQUIDITY
Liquidity to Remain Adequate: Fitch believes Sunac had sufficient
cash of CNY91 billion at end-1H17 to purchase the Wanda assets
following strong contracted sales in 1H17, when its attributable
contracted sales rose to CNY75 billion. Fitch expects the HKD4
billion new share placement and strong increase in contracted
sales in 2H17 following the Wanda City acquisition to further
improve its 2017 liquidity position.
SUNAC CHINA: Moody's Assigns B3 Rating to Proposed USD Notes
------------------------------------------------------------
Moody's Investors Service has assigned a B3 senior unsecured
rating to Sunac China Holdings Limited's (B2 negative) proposed
USD notes.
The rating outlook is negative.
The proceeds from the issuance will be used to refinance the
company's existing debt.
RATINGS RATIONALE
"The proposed notes are unlikely to materially impact Sunac's
debt leverage. They will, however, improve its debt maturity
profile, because the proceeds will be used to refinance existing
debt," says Franco Leung, a Moody's Vice President and Senior
Credit Officer.
Specifically, Moody's expects that any incremental debt from
Sunac's proposed notes issuance will not be material relative to
the company's total reported debt of around RMB113 billion at
end-2016.
Moody's says that Sunac's adjusted debt leverage - as measured by
revenue/adjusted debt and after adjustments for its joint
ventures and associates - will likely improve to 32%-39% over the
next 12-18 months from the weak level of 31% at end-December
2016.
This expected improvement in debt leverage will be driven by
strong revenue growth over the next 12-18 months. Moody's expects
the company to recognize revenue growth of more than 60% over the
same period.
Furthermore, the pace of growth in its debt could temporarily
slow as it raised HKD4 billion of equity in July 2017 and has
indicated that it wants to contain any increases in debt
leverage.
Its interest coverage - as measured by adjusted EBIT/interest and
after adjustments for its joint ventures and associates - will
remain around 2x-2.2x over the next 12-18 months, largely
unchanged from 2016. This is because the expected improvement in
its gross profit margins will offset the higher interest burden
associated with its increased debt.
The company achieved 94% year-on-year growth in contracted sales
to RMB108.85 billion for the first half of 2017, after robust
121% year-on-year growth to RMB151 billion for the full year of
2016.
Sunac's B2 corporate family rating (CFR) reflects its strong
sales execution (even in down-cycles), leading brand and market
position in first- and second-tier cities, as well as the good
quality of its land bank. The rating also considers the company's
adequate liquidity profile.
However, the rating is constrained by the high financial risk and
high debt leverage associated with its fast expansion plans and
acquisitive appetite. The adoption of a rapid asset turnover
business model has resulted in lower profitability and weak
interest coverage.
The negative outlook reflects its high-growth business strategy,
an approach that exposes it to financial risk.
Upward rating pressure is unlikely in the near term, given the
negative rating outlook.
However, the company's rating outlook could return to stable if
it can (1) establish a track record of restraint in investing in
non-core businesses; and (2) demonstrate an improvement in its
credit metrics, such that EBIT/interest exceeds 1.5x and adjusted
revenue/debt exceeds 35%-40%.
Downgrade pressure could arise if Sunac (1) fails to generate
positive contracted sales growth; (2) shows a weakening of its
solid liquidity position, or is exposed to high levels of payment
obligations from acquisitions or maturing debt in the next 12
months; or (3) shows a deterioration in its credit metrics, with
adjusted revenue/debt below 30%-35% or adjusted EBIT/interest
below 1x.
The B3 senior unsecured rating reflects Sunac's B2 CFR and a one-
notch downward adjustment for legal and structural subordination.
The principal methodology used in this rating was Homebuilding
And Property Development Industry published in April 2015.
Listed on the Hong Kong Stock Exchange on October 7, 2010, Sunac
China Holdings Limited is an integrated residential and
commercial property developer with projects in China's main
economic regions, such as the Beijing region, North China region,
Shanghai region, Southwestern China region, Southeastern China
region, Guangzhou-Shenzhen region, Central China region and
Hainan region.
At end-2016, its gross land bank totaled 72.9 million square
meters, and its attributable land bank totaled approximately 49.7
million square meters.
* CHINA: Corporate Bankruptcies Rise Steadily in 2017
-----------------------------------------------------
Reuters reports that Chinese courts handled more than 4,700
bankruptcy cases in the first seven months of 2017, up "steadily"
on the same period of 2016 as Beijing stepped up its campaign
against 'zombie firms', a senior official with the judiciary said
on Aug. 3.
"The difficulties of launching a bankruptcy case have been
effectively eased," He Xiaorong, a senior director at China's
Supreme People's Court, told a news briefing, Reuters relays.
He said that after 2009, the number of bankruptcy cases in China
went into decline with creditors finding it difficult to bring
insolvency cases in the courts, but subsequent reforms had
improved the situation, according to Reuters.
Zombie enterprises are loss-making firms that continue to operate
only with the support of government subsidies or soft loans,
Reuters says. China promised last year to shut them down as part
of supply side reform efforts to rejuvenate its debt-ridden state
sector and make better use of its capital, labour and resources.
Senior leadership sources estimated last year that the plans to
close zombie enterprises over the 2016-2018 period could involve
more than 6 million layoffs, and the government has already
introduced special funds to help pay for redundancies, Reuters
discloses.
But China's inadequate bankruptcy mechanisms have long been
regarded as an obstacle when it comes to shutting down loss-
making firms, with weak laws and inexperienced courts likely to
expose companies to a 'creditors' race' that forces the piecemeal
sale of assets, relates Reuters.
Reuters notes that executives have also complained the laws leave
company bosses personally liable when it comes to repaying debts,
making them reluctant to enter bankruptcy proceedings.
According to Reuters, the Supreme People's Court's He said China
had made strides to perfect the country's bankruptcy system,
establishing mechanisms to identify zombie enterprises, handle
layoffs and maintain social stability.
He said that a special bankruptcy court set up in 2015 had
handled 1,923 cases in the first seven months of 2017, up 28.3
percent compared to the same period of last year, Reuters says.
It now takes an average of 1.7 years to close a business through
insolvency procedures in China, better than the East and South
Asia average of 2.6 years, Reuters discloses citing a report by
BMI Research published last month.
================
H O N G K O N G
================
NOBLE GROUP: MAS Responds to Iceberg Research on Comments
---------------------------------------------------------
The Business Times reports that the Monetary Authority of
Singapore (MAS) responded to Iceberg Research a day after its
accusation that the saga involving beleaguered Noble Group was a
"complete failure" on the part of regulators.
According to the report, MAS said that it "will not hesitate to
take the necessary enforcement actions" should it uncover any
violations of regulations through its own investigations.
"MAS will also investigate potential breaches of the law that
have been referred to us," the Business Times quotes a spokesman
as saying.
In a post on its website on Aug. 3, Iceberg Research had harsh
words for both the Singapore Exchange (SGX) and MAS, the report
recalls. It had noted that the SGX had issued only "trade with
caution" notices on Noble and mentioned that it was closely
monitoring the situation. It added that SGX and MAS should not
have allowed Noble to raise more money on a balance sheet that
has attracted questions over its veracity, the report adds.
About Noble Group
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
Aug. 1, 2017, Moody's Investors Service said that Noble Group
Limited's (Caa1 negative) profit warning for its 2Q 2017 results
is credit negative, and will further increase the challenges the
company faces in turning around its operations and tackling large
near-term debt maturities.
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.
The TCR-AP also reported on May 18, 2017, Moody's Investors
Service has downgraded Noble Group Limited's corporate family
rating and senior unsecured bond ratings to Caa1 from B2, and the
rating on its senior unsecured medium-term note (MTN) program to
(P)Caa1 from (P)B2. The ratings outlook remains negative.
=========
I N D I A
=========
AANAV CONSTRUCTION: CRISIL Reaffirms B- Rating on INR5.5MM Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Aanav Construction
Co. (ACC) for obtaining information through letters and emails
dated April 13, 2017, and May 8, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 5.5 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 Aanav Construction Co. 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 Aanav Construction Co. 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'.
ACC, a proprietorship firm established by Mr. Manish Sachdeva in
2001, is a civil contractor undertaking power projects and road
construction near Delhi and the National Capital Region. Its
operations are managed by Mr. Sachdeva.
AJB LEATHERS: CRISIL Reaffirms 'B' Rating on INR4.40MM Cash Loan
----------------------------------------------------------------
CRISIL has been consistently following up with AJB Leathers for
obtaining information through letters and emails dated April 6,
2017, and May 4, 2017, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.4 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan 1.25 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 4.35 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 AJB Leathers. 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 AJB Leathers 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'.
AJBL, set up in 2000 as a proprietorship firm, processes goat,
sheep, and cow leather. It has a tannery in Dindigul (Tamil
Nadu). Operations are managed by Mr. J Balasubramaniam.
ARUNACHALA TRADING: CRISIL Reaffirms B Rating on INR2MM Loan
------------------------------------------------------------
CRISIL has been consistently following up with Arunachala Trading
Company (ATC) for obtaining information through letters and
emails dated April 6, 2017, and May 4, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 4 CRISIL A4 (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 Arunachala Trading Company.
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 Arunachala Trading Company 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 reaffirmed the rating at 'CRISIL B/Stable/CRISIL A4'.
Set up in 2015 as a partnership entity, ATC trades in paper and
board. The firm, based in Sivakasi (Tamil Nadu), deals in two
major categories of paper'printing and writing Paper and copier
paper. The operations are managed by Mr. Chiranjeevi Rathnam.
AXIOM PROPACK: CARE Lowers Rating on INR46.74cr LT Loan to 'D'
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Axiom Propack Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 46.74 CARE D Revised from
Facilities CARE BB-
Detailed Rationale & Key Rating Drivers
The revision of the rating assigned to the bank facilities of
Axiom Propack Private Limited takes into consideration the
ongoing delay in servicing of debt obligation. AAPL's ability to
establish clear track of servicing of its debt obligations with
improvement in liquidity position is the key rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delay in debt servicing: As per the interaction with the
banker and as per no default statement submitted by the client,
there have been delays in principal and interest repayment of
term loan and there has be devolvement of buyer's credit.
Incorporated in the year 2011, Axiom Propack Private Limited
(APPL) is engaged in manufacturing of bottle closing caps at
Belur Industrial Area, Dharwad, Karnataka which finds application
in packaging of spirits (alcoholic/beverages), carbonated
beverages, foodstuffs, oil and vinegar. The plant has installed
capacity of 25.44 crore units per annum for (Tamper evident
closures) UBER Caps and 8.48 crore units per annum for (Non
refillable tamper evident closures) Neo caps.
BMM ISPAT: CARE Lowers Rating on INR2780.69cr Loan to 'D'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BMM Ispat Limited (BMM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 2,780.69 CARE D Revised from
CARE B+
Short-term Bank
Facilities 360.00 CARE D Revised from
CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the rating of the bank facilities of BMM is on
account of the delays in debt servicing by the company owing to
higher fixed cost associated with company's steel division and
non-renewal of PPA agreement leading to idling of its power
plant, in turn impacting its cash flows.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing by the company: The company is facing
liquidity issues with weak cash accruals in relation to its
debt servicing obligation due to idling of its power division
owing to non-renewal of PPAs and subdued steel division
performance. BMM had approached the lenders for restructuring of
loan under S4A but the same was not approved by lenders.
Subdued industry scenario: The Indian steel industry has seen
partial recovery in past one year with various measures being
taken by GoI, however, with higher fixed cost associated with
production, company's steel division profitability remained under
stress.
BMM was incorporated in 2002 and is promoted by Mr. Dinesh Kumar
Singhi and has its plant operations at Danapur, HospetTaluk in
Bellary district of Karnataka. The Company primarily operates
under three major verticals, viz, Mineral Processing, Manufacture
of Steel and Generation of power. Over the years, company has
undertaken various expansions activities. The present asset
profile of the company comprises 2.6-MTPA Beneficiation plant,
2.4-MTPA Pellet plant, 235-MW power plant, 0.66-MTPA sponge iron
plant, 0.10-MTPA induction furnace, 1.2-MTPA Steel Melting shop
and 1.09-MTPA bar mill.
CONSORTIUM AUTOMOBILES: CRISIL Reaffirms B Rating on INR6.5M Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Consortium
Automobiles Private Limited (CAPL) for obtaining information
through letters and emails dated April 12, 2017 and May 4, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Channel Financing 6.28 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan 2.52 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 Consortium Automobiles 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 Consortium Automobiles 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'.
CAPL, incorporated in Odisha in 2004 by Mr. Vishal Dhawan, is an
authorised dealer of TML's commercial vehicles.
CONVEYOR AND ROPEWAY: CRISIL Reaffirms D Rating on INR4MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Conveyor and
Ropeway Services Private Limited (CRSPL) for obtaining
information through letters and emails dated April 12, 2017 and
May 4, 2017 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 1 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 0.4 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan 4 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.94 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Standby Line of Credit 0.15 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 Conveyor and Ropeway Services
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 Conveyor and Ropeway
Services 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/CRISIL
D'.
Conveyor & Ropeway Services Private Limited (CRSPL), established
in 1975, is engaged in the designing, manufacturing, erection and
commissioning of aerial ropeway systems, material handling plants
and coal washing plants apart from providing techno feasibility
studies for ropeway systems.
COSMIC FERRO: CARE Lowers Rating on INR122.05cr ST Loan to 'D'
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Cosmic Ferro Alloys limited (CFAL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 84.65 CARE D; ISSUER NOT
Facilities COOPERATING; Revised
from CARE BB on the basis
of best available
information
Short term Bank 122.05 CARE D; ISSUER NOT
Facilities COOPERATING; Revised
from CARE BB on the basis
of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Cosmic Ferro Alloys
limited (CFAL) to monitor the ratings vide e-mail
communications/letters dated July 14, 2017; July 12, 2017;
November 16, 2016; January 18, 2017; January 25, 2017;
January 27, 2017; February 1, 2017; February 2, 2017; February 7,
2017 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further, CFAL has
not paid the surveillance fees for the rating exercise as agreed
to in its Rating Agreement. The rating on CFAL's bank facilities
will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The revision in the ratings assigned to the bank facilities of
Cosmic Ferro Alloys Limited (CFAL) takes into account delay in
debt servicing due to stretched liquidity position of the
company.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing: There are delays in debt servicing due
to stretched liquidity position of the company.
Cosmic Ferro Alloys Limited (CFAL), incorporated in 2003, is
engaged in manufacturing of ferro manganese and silica manganese
with an installed capacity of 45 MVA (5 furnaces of 9 MVA each)
at Barjora, Durgapur, West Bengal. In April 2014, CFAL forayed
into a new product line, namely, Cold Rolled Form Sections (CRFS)
by setting up a new manufacturing facility of 18,000 MTPA in
Singur, West Bengal.
CVS INFRA: Ind-Ra Gives BB- LT Issuer Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned CVS
Infrastructure Private Limited (CVS) a Long-Term Issuer Rating of
'IND BB-'. The Outlook is Stable. The instrument-wise rating
actions are:
-- INR140 mil. Fund-based facility assigned with IND BB-
/Stable/IND A4+ rating;
-- INR10 mil. Non-fund-based facility assigned with IND A4+
rating; and
-- INR20 mil. Proposed fund-based facility * assigned with
Provisional IND BB-/Stable/Provisional IND A4+ rating.
* The ratings are provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facility
by CVS to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect CVS's small scale of operations, volatile
EBITDA margin and weak credit metrics due to the trading nature
of the agro commodities business. As per FY17 provisional
financials, revenue grew to INR696 million (FY16: INR437
million), due to a higher number of orders executed. EBITDA
margin remained between 0.6% and 4.16% over FY13-FY17 (FY17:
4.16%, FY16: 2.56%). Interest coverage (operating EBITDA/gross
interest expense) improved to 1.5x in FY17P (FY16: 0.6x) and net
leverage (total adjusted net debt/operating EBITDAR) to 5.3x
(13.0x) mainly due to an increase in the EBITDA margin.
The ratings also factor in the company's tight liquidity position
with 98.2% average utilisation of the fund-based facilities over
the 12 months ended June 2017.
However, the ratings benefit from CVS being part of the Mahalaxmi
Group which has been trading in chemical and petrochemical
products since 1974. Also, CVS uses the established 'Mahalaxmi'
brand name for its business.
RATING SENSITIVITIES
Negative: A substantial deterioration in the revenue or EBITDA
margin leading to deterioration in the credit metrics could be
negative for the ratings.
Positive: A significant increase in the revenue and operating
profitability leading to an improvement in the credit metrics on
a sustained basis would be positive for the ratings.
COMPANY PROFILE
Incorporated in 1995, CVS is engaged in trading of chemicals,
petrochemical products and agro commodities.
DHANLAXMI ELECTRICALS: Ind-Ra Moves Rating to BB+ Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Dhanlaxmi
Electricals' Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR30 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+(ISSUER NOT COOPERATING)/IND
A4+(ISSUER NOT COOPERATING) rating;
-- INR9.2 mil. Term loan migrated to non-cooperating category w
with IND BB+(ISSUER NOT COOPERATING) rating; and
-- INR90 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1994 by Mr. M.M. Khan, Dhanlaxmi Electricals
executes electrical work contracts, mainly shifting of electrical
lines during the widening of national and state highways. It also
undertakes other works such as house wiring, building
electrifications, mass housing and railway station works.
EXODUS FUTURA: CRISIL Raises Rating on INR10.5MM Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Exodus Futura Knit Private Limited (EFKPL) to 'CRISIL
B+/Stable' from 'CRISIL B-/Stable' and reaffirmed the short-term
facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL A4 (Reaffirmed)
Cash Credit 10.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Fund-Based 7.72 CRISIL B+/Stable (Upgraded
Bank Limits from 'CRISIL B-/Stable')
Term Loan 1.18 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects an improved financial risk profile.
The networth increased to INR19.66 crore as on March 31, 2017,
from INR14.66 crore a year earlier, driven by capital infusion of
INR4.99 crore during the year. This has reduced the gearing to
0.65 time from 1.12 times. Debt protection metrics were also
comfortable with interest coverage ratio at 1.8 times and net
cash accrual to total debt ratio at 0.14 time. Moreover the
promoters are likely to repay their entire term loan obligations
with further infusion of equity in fiscal 2018 which would result
in improved financial risk profile.
The ratings continue to reflect a modest scale of operations and
highly working capital-intensive operations resulting in
stretched liquidity. These rating weaknesses are mitigated by an
above-average financial risk profile because of moderate networth
and debt protection metrics, and the extensive experience of the
promoter in the garments industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: Revenue was modest at INR29.76
crore in fiscal 2017. The garment industry is highly fragmented
and competitive, with a large number of unorganised players in
the market. Such high fragmentation limits the pricing
flexibility and bargaining power of the players. The business
risk profile is likely to remain constrained due to a small scale
of operations and a presence in a highly competitive and
fragmented industry.
* Working capital-intensive operations: That's reflected in high
gross current assets (GCAs) of 336 days as on March 31, 2017; the
GCAs have been at similar levels in the past. The high GCAs are
due to a large inventory 252 days and receivables cycle of 113
days.
Strengths
* Extensive industry experience of the promoter: The promoter has
been active in the textile business for 20 years through group
entities, and has a strong understanding of the business. He has
an established relationship with suppliers for yarn, which is
outsourced for knitting and dyeing, and subsequently garments are
manufactured at the company's own facilities.
* Moderate financial risk profile: The networth was healthy at
INR19.66 crore and gearing low at 0.65 time, as on March 31,
2017, driven by capital infusion during the year. The capital
structure is expected to be maintained over the medium term.
Outlook: Stable
CRISIL believes EFKPL will continue to benefit from the extensive
industry experience of its promoter. The outlook may be revised
to 'Positive' in case of higher-than-expected profitability
leading to healthy cash accrual, and improvement in the working
capital cycle. The outlook may be revised to 'Negative' if lower-
than-expected cash accrual, sizeable working capital requirement,
or large, debt-funded capital expenditure weakens liquidity.
EFKPL, established in 2000, was taken over by the present
promoter, Mr Anil Bagaria, in 2006. The company manufactures
garments at its facility in Sonarpur, West Bengal.
In fiscal 2017, profit after tax (PAT) was INR0.07 crore on
operating income of INR29.81 crore, as against PAT of INR0.39
crore on operating income of INR33.46 crore in fiscal 2016.
FRYSTAL PET: CRISIL Reaffirms 'B+' Rating on INR4.54MM Term Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Frystal Pet Pvt.
Ltd. (FPPL) for obtaining information through letters dated
February 13, 2017 and April 10, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 2.96 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Term Loan 4.54 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 FPPL. 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
FPPL is consistent with 'Scenario 3' outlined in the 'Framework
for Assessing Consistency of Information on the basis of best
available information.' Based on the last available information,
CRISIL has reaffirmed its ratings on bank facilities of FPPL at
'CRISIL B+/Stable/CRISIL A4' (issuer not cooperating)'.
FPPL, incorporated in 2010, manufactures PET preforms. The
company is promoted by Mr. Rakesh Kumar Singhal and his son Mr.
Nishit Singhal.
GURUASHISH CONSTRUCTIONS: NCLT Admits UB's Insolvency Plea
----------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) has admitted Union Bank of India's insolvency plea against
Guruashish Constructions, a wholly-owned subsidiary of Housing
Development of Infrastructure Ltd (HDIL), the realty developer
said in a regulatory notice.
This is one of the first instances of a real estate company being
dragged to insolvency court by a lender, ET says. An Insolvency
Resolution Professional (IRP) for this matter has already been
appointed, the report notes.
"The Company will file an apt reply and will take an appropriate
measure, as and where required in the proceedings with the
Tribunal and the Appellate Authorities," HDIL, as cited by ET,
said in a notice to the Bombay Stock Exchange.
Guruashish Constructions had raised debt from Union Bank of India
by mortgaging two land parcels owned by Privilege Power and
Infrastructure, another subsidiary of holding company, the report
discloses citing HDIL's annual report for 2015-16. The debt was
raised at 13.9% interest rate payable monthly, the report notes.
HILTON INFRASTRUCTURE: CARE Cuts Rating on INR50cr LT Loan to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hilton Infrastructure (HI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 50.00 CARE D Revised from
Facilities CARE B+; Stable
Detailed Rationale & Key Rating Drivers
The revision in rating assigned to the bank facilities of Hilton
Infrastructure (HI) takes into consideration the delay in debt
servicing.
HI's ability to establish clear track of servicing of its debt
obligations with timely completion of the project and thereby
receipt of customer advances as per schedule without any major
cost run is the key rating sensitivity.
Key updates
Delay in debt servicing
As per the interaction with the banker, there has been delay in
interest payment for 60 days (i.e. the interest payment for
the month April, May and June, 2017 is not yet paid).
Established in 2009, Hilton Infrastructure (HI) is engaged into
development of residential and commercial projects in Mumbai. HI
is currently developing a redevelopment residential (13 storey)
and commercial (8 storey) project in Grant Road East, Mumbai.
Further in the same locality the entity is developing a single
tower (21 storeys) under the name of 'Fuego' solely for the
purpose of sale. The entire project is spread across 55,518
square meters.
JDC INDIA: CRISIL Reaffirms 'B' Rating on INR7.0MM Cash Loan
------------------------------------------------------------
CRISIL has been consistently following up with JDC India Limited
(JDC) for obtaining information through letters and emails dated
April 12, 2017, and May 4, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 7.0 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 3.3 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Term Loan 1.7 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 JDC India 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 JDC India 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/CRISIL A4'.
JDC was incorporated in 1995 by Mr. Aloke Basu and his brother
Mr. Ajay Basu. It mills non-basmati rice. Its facility is at
Ausgram in Burdwan, West Bengal. The company also has a cold
storage facility in Ausgram for potato traders and farmers.
KANAK DEKA: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kanak Deka
(Kanak) a Long-Term Issuer Rating of 'IND B+'. The Outlook is
Stable. The instrument-wise rating action is:
-- INR70 mil. Proposed term loan* assigned with Provisional IND
B+/Stable rating.
*The above rating is provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facility by Kanak to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect Kanak's small scale of operations. According
to provisional financials for FY17, revenue was INR85 million
(FY16: INR58 million). The rise in revenue was driven by higher
contribution from different businesses.
The ratings also reflect a tight liquidity, indicated by a 97%
utilisation of fund-based limits during the six months ended June
2017.
The ratings, however, are supported by comfortable credit
metrics. In FY17, interest coverage (operating EBITDA/gross
interest expense) was 19.0x (FY16: 15.6x) and net financial
leverage (adjusted net debt/operating EBITDA) was 0.3x (0.4x).
The improvement in interest coverage and net financial leverage
was due to an improvement in EBITDA to INR27 million in FY17
(FY16: INR25 million). Ind-Ra expects credit metrics to
deteriorate over FY18-FY19 owing to a rise in financial costs due
to higher debt.
The ratings are also supported by the addition of a new revenue
source, the lease rental business. Kanak has leased out one of
its properties in Assam, which has an area of 186,336 square
feet, to Havells India Limited for 10 years, which includes a
three-year lock-in period.
RATING SENSITIVITIES
Negative: Any deterioration in the liquidity profile will be
negative for the ratings.
Positive: An improvement in overall scale of operations will be
positive for the ratings.
COMPANY PROFILE
Kanak is engaged in different businesses such as hardware
trading, construction and lease rental. Its property generates
INR1.55 million in rental income monthly.
KHANNA PROPERTIES: CRISIL Reaffirms D Rating on INR39.5MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Khanna Properties
and Infrastructures Private Limited (KPIPL) for obtaining
information through letters and emails dated April 10, 2017 and
May 8, 2017 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 0.7 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Term Loan 39.5 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 Khanna Properties and
Infrastructures 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 Khanna
Properties and Infrastructures 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'.
KPIPL was set up in 2006 and is a part of the Jabalpur-based
Khanna group. The company develops residential real estate,
primarily in Jabalpur. It has six ongoing projects, with a total
of 649 units in Jabalpur: Sukh Sagar Blue, Sukh Sagar Solitaire,
Sukh Sagar Platinum, Sukh Sagar Sapphire, Sukh Sagar Lifestyle,
and Sukh Sagar Lifespace.
LINIT EXPORTS: CRISIL Lowers Rating on INR2MM Loan to 'B'
---------------------------------------------------------
CRISIL has been consistently following up with Linit Exports
Private Limited (LEPL) for obtaining information through letter
dated April 6, 2017 apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing Credit 2 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable;
Removed from 'Notice of
withdrawal')
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 Linit group. 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 Linit group 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 removed its rating from
notice of withdrawal and downgraded the rating to 'CRISIL
B/Stable' from 'CRISIL BB+/Stable'.
Analytical Approach
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of LEPL and Linit Technologies Pvt Ltd
(LTPL). This is because the two companies, together referred to
as the Linit group, have a common management and line of
business, and considerable financial synergies.
LEPL was set up in 1998 by Mr. Nitin Karjatkar and his wife Ms.
Lily Karjatkar. In 2006, the company set up facilities for
manufacturing engineering components used in pumps and valves,
and for general engineering applications. LEPL's promoters set up
LTPL in 2011-12 (refers to financial year, April 1 to March 31),
and the company commenced operations in January 2011. LTPL
currently does jobwork for LEPL and will gradually increase its
presence in the domestic market. LTPL does not have its own
machines and leases machines from LEPL.
MARIGOLD CONSTRUCTIONS: CRISIL Reaffirms INR9.84M Loan Rating 'D'
-----------------------------------------------------------------
CRISIL has been consistently following up with Marigold
Constructions (MC) for obtaining information through letters and
emails dated April 10, 2017 and May 8, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Project Loan 9.84 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 0.16 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 Marigold Constructions. 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 Marigold Constructions 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'.
MC, set up by Mr. Bharat Prajapati and Mr. Bhavin Sheth in
Mumbai, is a real estate developer. It is developing Marigold
Exotic, a residential project with 30 units at Mulund in Mumbai.
MIRACLE DEVELOPERS: CRISIL Reaffirms 'D' Rating on INR6MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Miracle Developers
(MD) for obtaining information through letters and emails dated
April 10, 2017 and May 8, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 6 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 Miracle 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 Miracle Developers 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 reaffirmed the rating
at 'CRISIL D'.
MD, established in 2009 by Mr. Rahul Gawade and his brother Mr.
Amit Gawade, develops residential property at Wakad in Pune. The
firm is currently developing Miracle Mark, a project of about
100,000 square feet (in two phases).
MITTAL INFRASTRUCTURE: CRISIL Reaffirms 'B' Rating on INR6MM Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Mittal
Infrastructure Private Limited (MIPL) for obtaining information
through letters and emails dated April 10, 2017 and May 08, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 6 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Bank Guarantee 2 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 2 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 Mittal Infrastructure 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 Mittal Infrastructure 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/CRISIL A4'.
MIPL was incorporated in 2004, promoted by the Mittal family of
Pune, Maharashtra. The company, registered as a Class A
government contractor, undertakes civil works for government
entities such as the Indian Railways, semi-government entities
such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd, and
private entities such as educational trusts and manufacturing
companies.
MY CAR: CRISIL Reaffirms 'B' Rating on INR13MM Cash Loan
--------------------------------------------------------
CRISIL has been consistently following up with MY Car Private
Limited (MCPL) for obtaining information through letters and
emails dated April 12, 2017, and May 4, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 13 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Inventory Funding 11.5 CRISIL B/Stable (Issuer Not
Facility Cooperating; Rating
Reaffirmed)
Term Loan 2.3 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 MY Car 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 MY Car 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'.
MCPL, set up in 2000 by Mr. Vijay Garg, is an authorised dealer
in Kanpur for passenger cars manufactured by MSIL; it has three
showrooms and five workshops. The company also deals in spare
parts and accessories manufactured by MSIL.
OPTIMAL POWER: CRISIL Reaffirms B- Rating on INR1.85MM Loan
-----------------------------------------------------------
CRISIL has been consistently following up with Optimal Power
Synergy India Private Limited (OPS) for obtaining information
through letters and emails dated April 12, 2017, and May 4, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.5 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 1.85 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Foreign Letter 1.00 CRISIL B-/Stable (Issuer Not
of Credit Cooperating; Rating
Reaffirmed)
Proposed Long Term 3.65 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 Optimal Power Synergy 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 Optimal Power Synergy
India 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/CRISIL A4'.
OPS, incorporated in 2007, is a subsidiary of Optimal Power
Solutions Pty Ltd, Australia. The company is involved in
renewable energy business, specifically in manufacturing and
design of Power Conditioning Units (PCUs) such as inverters and
various control systems. OPS is also involved in manufacturing od
rooftop solar inverters in the range of 3 to 30 kilowatt. Its
operations are managed by Dr. Swati Purakayastha.
PEREGRINE PHOSPHATE: CRISIL Reaffirms 'B' Rating on INR1MM Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Peregrine
Phosphate Private Limited (PPPL) for obtaining information
through letters and emails dated April 10, 2017 and May 8, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1 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 Peregrine Phosphate 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 Peregrine Phosphate 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 2013, PPPL is a Bengaluru-based company engaged
in trading of chemicals and fertilisers, pesticides and plant
nutritional and bio organic products. The operations are managed
by Mr. Rahul Nilkanth.
PRAGATI MARINE: CRISIL Reaffirms 'B' Rating on INR3.5MM Cash Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Pragati Marine
Services Private Limited (PMSPL) for obtaining information
through letters and emails dated April 12, 2017 and May 4, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 3.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term
Bank Loan Facility .82 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 1.68 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 Pragati Marine Services
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 Pragati Marine
Services Private Limited is consistent with 'Scenario 2' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL BB' category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL
B/Stable/CRISIL A4'.
Established in 2009 by Mr. Amrendra Kumar Singh, PMSPL provides
crew and manning services for the shipping industry. It also
leases tug and barge and undertakes dredging contracts.
Operations are managed by Mr. Amrendra Kumar Singh with a team of
professionals.
PSP FARMS: CRISIL Reaffirms B- Rating on INR7.5MM Cash Loan
-----------------------------------------------------------
CRISIL has been consistently following up with PSP Farms Private
Limited (PSP) for obtaining information through letters and
emails dated April 6, 2017, and May 4, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.5 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 PSP Farms 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 PSP Farms Private 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
reaffirmed the rating at 'CRISIL B-/Stable'.
R.Z. MALPANI: CRISIL Reaffirms 'B' Rating on INR3.75MM Loan
-----------------------------------------------------------
CRISIL has been consistently following up with M/S. R.Z. Malpani
(RZ) for obtaining information through letters and emails dated
April 10, 2017 and May 8, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6.25 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 2.50 CRISIL B (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 3.75 CRISIL B (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Rupee Term Loan 2.50 CRISIL B (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 M/S. R.Z. Malpani. 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 M/S. R.Z. Malpani 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 reaffirmed the rating
at 'CRISIL B/Stable/CRISIL A4'.
RZ, initially established as a proprietorship firm was
reconstituted as a partnership firm in 1983. The Latur
(Maharashtra)-based firm is a civil contractor, undertaking
building construction work for state and central government
entities across the Maharashtra state. RZ is currently developing
a build-operate-transfer shopping complex project for the Latur
Municipal Corporation apart from other civil construction
activities. The operations of the firm are managed by Mr.
Rajendra Malpani, Mr. Sarvesh Malpani and Mr. Shreyash Malpani.
RADIANT LUBES: CRISIL Reaffirms B Rating on INR13.75MM Cash Loan
----------------------------------------------------------------
CRISIL has been consistently following up with Radiant Lubes
Private Limited (RLPL) for obtaining information through letters
and emails dated April 10, 2017 and May 8, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5.25 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Bill Discounting 3.00 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 13.75 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 Radiant Lubes 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 Radiant Lubes 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/CRISIL A4'.
RLPL is a private limited company, incorporated in Nagpur
(Maharashtra) in 2000; it was founded by Mr. Deepak Bharadwaj and
Mr. Vijay Jindal. The company refines petrochemicals, recycles
oils, and trades in polymers, and is a del-credre agent for
Indian Oil Corporation Ltd. RLPL has a manufacturing unit in
Nagpur.
RAMNANDI ESTATE: CRISIL Reaffirms 'D' Rating on INR5.04MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Ramnandi Estate
Private Limited (REPL) for obtaining information through letters
and emails dated April 12, 2017, and May 4, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.04 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 4.93 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 Ramnandi Estate 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 Ramnandi Estate 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'.
Incorporated in August 2011, REPL is promoted by Mr. Akhouri
Gopal. The company is the sole authorised dealer of HMIL
passenger vehicles in the Gaya district of Bihar. It has one
showroom-cum-workshop in Gaya.
RAMNIKLAL & SONS: CARE Lowers Rating on INR17cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ramniklal & Sons (R&S), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 17.00 CARE D; Revised from
CARE BB-; ISSUER NOT
COOPERATING; Based on best
available information
Short term Bank
Facilities 6.00 CARE D; ISSUER NOT
COOPERATING CARE A4; ISSUER
NOT COOPERATING; Based on
best availableinformation
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from RS to monitor the
rating(s) vide e-mail communications/letters dated Oct. 19, 2016,
Feb. 9, 2017 and March 6, 2017 and March 16, 2017 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Further, RS has not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on Ramniklal & Sons's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised due to the account of the company
has been classified as NPA, as per banker interaction.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing: As per banker interaction, there have
been dealy in debt servicing and the account has been classified
as NPA.
Established in 1998, as a partnership firm, Ramniklal & Sons
(R&S) is engaged in making of jewellery [primarily diamond and
gems stones studded jewellery] mainly for the high-end market.
The firm is also engaged in trading of diamonds. The company
majorly sells its jewellery to various reputed domestic clients
and export clients mainly in Dubai and Kuwait market. The firm
also owns a retail store at Hughes Road, Mumbai (retail sales
contribute only a miniscule portion of overall sales).
RANGOLI INDUSTRIES: CRISIL Reaffirms B- Rating on INR12MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Rangoli Industries
Private Limited (RIPL) for obtaining information through letters
and emails dated April 12, 2017 and May 04, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .43 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 12.00 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term .88 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 Rangoli Industries 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 Rangoli Industries Private
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 reaffirmed the rating at 'CRISIL B-
/Stable/CRISIL A4'.
RIPL, incorporated in 1996 by Mr. Arun Agarwal, started
commercial production in 1997. It manufactures and trades in
airtexturised yarn and draw-texturised yarn. Its manufacturing
plants are in Surat and Silvassa and have installed capacity of
1200 tonne per month.
RISING SUN: CARE Reaffirms 'D' Rating on INR5.26cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Rising Sun Power Private Limited (RSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5.26 CARE D Reaffirmed
Detailed Rationale& Key Rating Drivers
The rating assigned to the bank facilities of Rising Sun Power
Private Limited (RSPL), continues to be constrained by delays in
debt service by the company owing to insufficient cash flow
generation on account of project running at low capacity
utilization factor.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing obligations: RSPL has been delaying on
its debt servicing obligations owing to liquidity constraints
faced by the company due to unavailability of the funds on
account of the company being in initial stage of operations and
the project running at low capacity utilization factor (CUF) due
to non-availability of desired flow of water.
The company has reported weak CUF of nearly 20% for the twelve
months ended March 31, 2017. The company only generated nearly 20
lakh units of energy during April 2016 to March 2017. The company
has been regularly delaying in the payment of its debt
obligations, usually for a period of 45- 50 days and as on date
(July 11, 2017), the company has not paid the monthly term loan
installments (both principal & interest) for the month of
June 30, 2017, amounting to INR0.09 crore.
Nascent stage of operation: The Company has started its
commercial operations from October 2014 and hence has a limited
track record of operations. The company is also exposed to
stabilization risk for the recently concluded hydro power
project.
Hydrological risks associated with run-of-the-river power
generation: Run-of-the-river power is considered an un-firm
source of power, as a run-of-the-river project has little or no
capacity for water storage and therefore is dependent on the
flow of river water for power generation. It thus generates much
more power during times when seasonal river flows are
high and much less during the drier months.
Decline in total operating income and continuing net losses:
Total Operating income of RSPL has decreased from INR1.86 crore
in FY16 to INR1.26 crore in FY17 (Provisional) on account of
reduction in power generated and sold from 28 lakh units of
energy in FY16 to nearly 20 lakh of energy in FY17. The PBILDT
margin of the company dipped by 1292 bps to 57.40% in FY17
(Provisional) over FY16 due to under absorption of fixed
overheads on account of decline in CUF and generation of power.
The company continues to incur net loss due to low PBILDT
resulting in under absorption of financial expenses and
depreciation provisions. The company incurred net loss of INR2.02
crore in FY17 (Provisional) compared to net loss of INR1.92 crore
in FY16.
Leveraged capital structure, weak debt coverage indicators and
stressed liquidity: The capital structure of the company marked
by Debt equity ratio and overall gearing of RSPL has deteriorated
as on March 31, 2017 owing to its negative networth for the year
on account of negative balances in reserves that have arisen from
RSPL's inability to generate profits over the years.
Current and quick ratios also remained weak at 0.01x as on
March 31, 2017.
Key Rating Strengths
Experienced promoters: The Company has been promoted by Mr. R
Shridhar and Mr. Ashirwad Agarwal from Bangalore, Karnataka. Mr.
R Shridhar (aged about 57 years), Managing Director, is having an
experience of more than 30 years in hydel power project (Mechno
Engineering Company), looks after the overall management of the
company and is ably supported by Mr. Ashirwad Agarwal (aged about
38 years), having more than a decade of experience in the steel
industry.
Favourable policy framework for the small hydro-power projects:
GOI is promoting hydro power projects by providing income tax
holiday for 10 years under section 80IA of IT Act. The project is
also entitled to receive capital subsidy (Rs.1.4 crore) from the
Ministry of New & Renewable Energy Sources (MNRE), of which
INR0.7 crore has been already received.
Power purchase agreement with Ozone Properties Private Limited:
RSPL, in order to avail better rates, has entered into five years
power purchase agreement (PPA) with Ozone Properties Private
Limited (OPL) to sell 2.5 MW of power. As per the PPA, the annual
average base rate (ABR) has been fixed at INR6.05 per unit and
OPL will remit the amount based on the units purchased from RSPL
at ABR. On the expiry of the term a fresh agreement shall be
signed between the two parties based on mutual consent.
Rising Sun Power Private Limited (RSPL) was incorporated in
December, 2009 by Mr. Ashirwad Agarwal and Mr. R Shridhar of
Bangalore, Karnataka with the objective of setting up a hydel
power plant. The company commenced operation from October 26,
2014 with commencement of 2MW (1MWx2) run-of-the-river hydro
power generation plant in Ramanagaram district of Karnataka. RSPL
has already entered into medium-term (5 years) power purchase
agreements (PPAs) with Ozone Properties Private Limited for the
entire hydro power generation capacity (expiring in the year
2019) at a tariff of INR6.05 per kwh, which ensures steady
revenues from sale of power.
For FY17(Provisional, refers to the period April 1 to
March 31),the company achieved total operating income of INR1.26
crore and incurred net loss of INR2.02 crore as against total
operating income of INR1.86 crore in FY16 and net loss of Rs.1.92
crore in FY16.
SABITRI RICE: CRISIL Reaffirms 'C' Rating on INR9.0MM Cash Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Sabitri Rice Mills
Private Limited (SRMPL) for obtaining information through letters
and emails dated April 12, 2017, and May 04, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.1 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 9.0 CRISIL C (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 0.7 CRISIL C (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 Sabitri Rice Mills 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 Sabitri Rice Mills 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 C/CRISIL A4'.
SRMPL, promoted by Mr. Dilip Kumar Agarwalla in 2007 and based in
Karanjia, Odisha, processes paddy into raw and parboiled rice. It
also sells broken rice and rice bran, which are by-products of
the milling process.
SAIDEEP CARS: CRISIL Reaffirms 'C' Rating on INR3.0MM Loan
----------------------------------------------------------
CRISIL has been consistently following up with Saideep Cars
Private Limited (SCPL) for obtaining information through letters
and emails dated April 10, 2017 and May 8, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.5 CRISIL C (Issuer Not
Cooperating; Rating
Reaffirmed)
Inventory Funding 3.0 CRISIL C (Issuer Not
Facility Cooperating; Rating
Reaffirmed)
Rupee Term Loan 1.5 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 Saideep Cars 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 Saideep Cars Private 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 reaffirmed the rating at 'CRISIL C'.
Incorporated in 2008, SCPL is promoted by Chopra family. The
company is dealer of passenger vehicle Renault India Pvt Ltd. in
Ahmednagar (Maharashtra). The company has 1 showroom in
Ahmednagar. The operations of the company are managed by Chopra
family.
SASA MUSA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan
----------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Sasa Musa Sugar Works Private Limited (SMSWPL) at 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55.00 CRISIL B+/Stable
(Reaffirmed; Removed from
'Issuer Not Cooperating')
Term Loan 4.90 CRISIL B+/Stable
(Reaffirmed; Removed from
'Issuer Not Cooperating')
Proposed Long Term 1.60 CRISIL B+/Stable
Bank Loan Facility (Reaffirmed; Removed from
'Issuer Not Cooperating')
The rating continues to reflect a below-average financial risk
profile because of a negative networth and below-average debt
protection metrics. The rating also factors in exposure to risks
relating to cyclicality in the sugar industry. These rating
weaknesses are partially offset by the extensive industry
experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: The networth was a
negative INR19.48 crore as on March 31, 2017, on account of
operating losses in fiscals 2015 and 2016. Debt protection
metrics were weak, with interest coverage and net cash accrual to
total debt ratios of 1.48 times and 0.04 time, respectively, in
fiscal 2017.
* Exposure to risks relating to cyclicality in the sugar
industry: The sugar industry is cyclical, seasonal, and highly
fragmented, and sugar production is dependent on climatic
conditions. Erratic monsoons can impact the sugarcane yields
thereby affecting supply.
Strengths
* Extensive industry experience of the promoters, and
advantageous location of the sugar factory: The promoters have
sound industry knowledge because of their experience of more than
80 years in the sugar business. The company also benefits from
the demand-supply mismatch in Bihar, which allows better price
realisation from the market in the region.
Outlook: Stable
CRISIL believes SMSWPL will continue to benefit from the
extensive industry experience of its promoters. The outlook may
be revised to 'Positive' if significant and sustained improvement
in revenue and operating profitability, or efficient working
capital management, strengthens the financial risk profile. The
outlook may be revised to 'Negative' in case of a considerable
decline in revenue and profitability, a stretched working capital
cycle, or any large, debt-funded capital expenditure, leading to
weakening of the key credit metrics.
SMSWPL was promoted by the late Mr Sheikh Mohammad Ibrahim in
1933. The company produces sugar at its factory in Sasa Musa,
Bihar.
On a provisional basis, profit after tax was INR1.41 crore on net
sales of INR63.33 crore in fiscal 2017. Net loss was of INR1.17
crore on net sales of INR54.60 crore in the previous fiscal.
SATHE SYNTHETICS: CRISIL Reaffirms B+ Rating on INR12MM Loan
------------------------------------------------------------
CRISIL has been consistently following up with Sathe Synthetics
(Prop. Rakesh Fuels Private Limited) (SS) for obtaining
information through letters dated March 6, 2017 and March 22,
2017 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12 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 SS. 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 SS
is consistent with 'Scenario 3' outlined in the 'Framework for
Assessing Consistency of Information on the basis of best
available information.' Based on the last available information,
CRISIL has reaffirmed its ratings on long term bank facilities of
SS at 'CRISIL B+/Stable (issuer not cooperating)'.
Incorporated in 1995, SS is a Delhi based company involved in the
manufacturing of multifilament yarn. These are high tenacity yarn
which finds application in filter fabrics, belts, bags, tapes
etc. The promoter of the company is Mr. Rajiv Mohan Garg.
SCANIA STEELS: CRISIL Reaffirms 'D' Rating on INR24.43MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Scania Steels and
Powers Limited for obtaining information through letters and
emails dated April 12, 2017, and May 4, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 24.43 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Funded Interest 6.80 CRISIL D (Issuer Not
Term Loan Cooperating; Rating
Reaffirmed)
Letter of Credit 3.00 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 5.60 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Term Loan 23.76 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Working Capital
Term Loan 12.41 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 Scania Steels and Powers
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 Scania Steels and Powers
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/CRISIL D'.
SENTHIL ENTERPRISES: Ind-Ra Moves Rating to 'B+ Not Cooperating'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Senthil
Enterprises' Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR52.5 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B+(ISSUER NOT
COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; and
-- INR5 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2009 as a proprietorship concern, Senthil
Enterprises is engaged in the trade of cotton bales.
SHERLOCK INDUSTRIES: Ind-Ra Assigns 'D' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sherlock
Industries (Sherlock) a Long-Term Issuer Rating of 'IND 'D'. The
instrument-wise rating actions are:
-- INR49.5 mil. Term loan (long-term) due on January 2018-April
2020 assigned with IND D rating; and
-- INR30 mil. Fund-based working capital limits (long- and
short-term) assigned with IND D rating.
KEY RATING DRIVERS
The ratings reflect continuous delays in servicing term debt due
obligations over the two months ended May 2017 by Sherlock owing
to a tight liquidity due to an elongated net working capital
cycle of 313 days in FY17 (provisional) (FY16: 324 days). The net
working capital cycle is long owing to higher inventory days.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months
could be positive for the ratings.
COMPANY PROFILE
Established in 2012 in Gujarat, Sherlock manufactures gypsum
plasters and ceilings. It is promoted by Mr Snehal Patel and his
family, who have more than 10 years of experience in the building
material segment.
Sherlock reported INR155.79 million in revenue for FY17.
SKC TRADING: Ind-Ra Migrates Issuer Rating to BB+ Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated SKC Trading
Building Materials Pvt Ltd's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the
agency's website. The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits migrated to
non-cooperating category with IND BB+(ISSUER NOT COOPERATING)
rating; and
-- INR50 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 19, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2005, SKC Trading Building Materials mainly
trades in building materials.
SRI CHANDRA: CRISIL Lowers Rating on INR10MM Cash Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded the ratings on the bank facilities of
Sri Chandra Moulishvar Spinning Mills Private Limited to 'CRISIL
D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4' driven by delays in
the repayment of term loan interest and instalment. These delays
are caused by stretched liquidity resulting from working capital-
intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .09 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 10.00 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Long Term Loan 7.75 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating also factors in the below-average financial risk
profile and modest scale of operations, and susceptibility to
volatility in raw material prices. These weaknesses are offset by
the extensive experience of promoter in cotton yarn industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile
The financial risk profile has been below average because of high
gearing (3.56 times as on March 31, 2016), small networth (Rs 6.3
crore), and modest debt protection metrics (net cash accrual to
total debt and interest coverage ratios were 7% and 1.6 times,
respectively, for fiscal 2016).
* Small scale of operations and susceptibility to fluctuations in
input costs
Revenue of INR58.7 crore in fiscal 2016 indicates small scale of
operations amid intense competition. Pricing is determined by
market forces and small players are price takers. Raw cotton,
which accounts for 65% of SCMSM's production cost, is a key
driver of operating profitability. Consequently, the operating
margin remains constrained (7-16% over the five years through
fiscal 2016).
Strength
* Experience of promoter
Benefits from the promoter's experience (over 10 years) and
established relationship with key customers, resulting in repeat
orders and demand for increased output, should continue to
support the business risk profile.
Established in September 2004 by Mr M Ravichandran, SCMSM
manufactures hosiery yarn in Tirupur (Tamil Nadu).
Profit after tax was INR5.14 lakh on total income of INR58.70
crore in fiscal 2016, against INR1.09 lakh and INR61.91 crore,
respectively, for the previous fiscal.
VIBHAV FARMS: Ind-Ra Migrates Issuer Rating to D Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vibhav Farms'
(VF) Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND
D(ISSUER NOT COOPERATING)' on the agency's website. The
instrument-wise rating actions are:
-- INR15.0 mil. Fund-based working capital limits (long-term)
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating;
-- INR10.6 mil. Working capital term loan limits (long-term)
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating;
-- INR33.8 mil. Term loan limits (long-term) migrated to non-
cooperating category with IND D(ISSUER NOT COOPERATING)
rating; and
-- INR10 mil. Proposed fund-based working capital limits (long-
term) migrated to non-cooperating category with Provisional
IND D(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 27, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
VF is a Telangana-based partnership firm engaged in the poultry
business.
VINIRRMAA PROJECTS: Ind-Ra Places Rating to 'B Not Cooperating'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vinirrmaa
Projects Pvt Ltd's (VPPL) Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR80 mil. Fund-based working capital limits migrated to non-
cooperating category with IND B(ISSUER NOT COOPERATING)/IND
A4(ISSUER NOT COOPERATING) rating; and
-- INR150 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 1
April 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1999, VPPL executes engineering, procurement and
construction contracts in the civil building and mining segments.
====================
N E W Z E A L A N D
====================
A&G PRICE: Owes Creditors NZ$5.2 million, Liquidators Say
---------------------------------------------------------
BusinessDesk reports that A&G Price owed NZ$5.2 million to its
creditors, according to the liquidator's first report. The Thames
engineering company went into liquidation in July, the report
discloses.
The company had been operating in Thames for nearly 150 years,
but recently suffered a downturn in business and profitability
"resulting in it experiencing cash flow difficulties for some
months prior to the appointment of the liquidators," BusinessDesk
quotes liquidators Gareth Hoole and Clive Bish of Ecovis KGA as
saying in their report.
"The company operated under those cash flow constraints with the
support of its shareholder but ultimately that situation became
unsustainable and the decision was taken to place the company
into liquidation," the report, as cited by BusinessDesk, said.
BusinessDesk relates that the liquidators said they weren't able
to comment on the company's solvency at the date they were
appointed, but would investigate, and "pursue appropriate action
against the director to the extent considered economically
beneficial if evidence exists to support such action."
A&G Price had NZ$1,506 in cash and was owed NZ$1.7 million by
debtors as at July 26, it said. The company had $5.1 million in
total liabilities, including $2.5 million to secured creditor
Real Property, and $1.4 million each to preferential and
unsecured creditors, BusinessDesk discloses.
According to BusinessDesk, the liquidators didn't disclose the
value of work in progress, intangibles or fixed assets as they
said that could impact negotiations with potential purchasers. A
large amount of the preferential debt is related to employees'
redundancy entitlements, and the liquidators are seeking legal
opinions on how they should be classified, so that figure is
subject to amendment, they said.
The report said the liquidators have decided not to hold a
meeting of creditors, and have met with union representatives and
the priority secured creditor about the likely outcome for
secured and preferential creditors, BusinessDesk relates.
The liquidators gave a "tentative estimate" of the liquidation
being completed within six months, adds BusinessDesk.
A & G Price Ltd is a New Zealand-based heavy engineering company.
AMTEC ENGINEERING: Closes Shop Due to Insolvency; All Jobs Axed
---------------------------------------------------------------
Leighton Keith at Stuff.co.nz reports that the downturn in the
oil and gas industry has forced Amtec Engineering to shut up shop
and lay off all of its staff.
On July 28, employees at Amtec Engineering, Connett Rd East Bell
Block, were called into a meeting and told they were all being
made redundant, Stuff relates.
According to Stuff, the company's 44 staff were given a letter
stating while the business' directors had hoped things would
improve, it was closing the doors on the basis it was insolvent
and was unable to continue trading.
"However the combination of persistently poor market conditions,
changes to bank lending conditions and demands from creditors
mean that AMTEC now has no other option other than to close," it
said, Stuff relays.
The employees were given one week's notice but they were able to
elect not to work the notice period, the report states.
Amtec Engineering was established in 1986 as a mechanical
fabrication and construction business primarily servicing the
local oil and gas and dairy industries but also around New
Zealand for water treatment, food, chemical and energy.
*********
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 ***