/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/170823.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, August 23, 2017, Vol. 20, No. 167 Headlines A U S T R A L I A AFG 2017-1: S&P Assigns Prelim BB (sf) Rating to Class E Debt BUBS BABY: First Creditors' Meeting Set for August 29 HOME AUSTRALIA: Liquidators Criticize Amount Paid for Land ISHERWOOD PROTECTIVE: Second Creditors' Meeting Set for Aug. 29 M. WEBSTER: Second Creditors' Meeting Set for August 30 WARE BUILDING: Subcontractors to Pressure Gov't. for Unpaid Bills WEBSTER ASSET: Second Creditors' Meeting Set for August 30 C H I N A CAR INC: Moody's Lowers CFR to Ba3; Outlook Stable CAR INC: S&P Lowers CCR to BB on Weaker-Than-Expected Performance WEST CHINA CEMENT: Robust 1H 2017 Results Support Moody's B1 CFR H O N G K O N G CHINA MEDICAL: No Damages Award for Deutsches From Fidelity I N D I A A K LUMBERS: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable ABHIRAMA STEELS: Ind-Ra Moves D Issuer Rating to Not Cooperating ANMOL ENTERPRISES: CRISIL Reaffirms 'D' Rating on INR15MM Loan AROMA REALTIES: CRISIL Reaffirms 'D' Rating on INR20MM Loan ARYACON CONTRACTORS: CRISIL Reaffirms B+ Rating on INR6MM Loan ASIA-PACIFIC INSTITUTE: CRISIL Reaffirms D Rating on INR18MM Loan ATMIYA ENGINEERING: CRISIL Reaffirms D Rating on INR5.17MM Loan BAPASHREE INFRA: CRISIL Reaffirms D Rating on INR20MM Loan BESTO TRADELINK: CRISIL Reaffirms 'D' Rating on INR11MM Loan COSMOS INDUSTRIES: Ind-Ra Ups LT Issuer Rating to 'BB'/Stable DELSEA EXPORTS: CRISIL Lowers Rating on INR4MM Loan to 'B' GEOMAX MINES: CRISIL Reaffirms 'B' Rating on INR15MM Cash Loan GREEN WOODCRAFTS: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan INDIA COKE: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable JAYAHO AGRI: CRISIL Reaffirms 'D' Rating on INR12MM Cash Loan JINDAL WOOD: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable KISHORI INDUSTRIES: CRISIL Reaffirms 'B' Rating on INR15MM Loan M C SPINNERS: Ind-Ra Migrates D Issuer Rating to Not Cooperating M S COLD: Ind-Ra Migrates BB- Issuer Rating to Not Cooperating NAGA SINDHU: CRISIL Reaffirms 'D' Rating on INR14.45MM Term Loan OASIS COMMERCIAL: Ind-Ra Withdraws BB+ Long-Term Issuer Rating ORIENT COLOR: CRISIL Reaffirms 'B' Rating on INR1.87MM LT Loan PARSVNATH DEVELOPERS: CRISIL Cuts Rating on INR141.04MM Loan to D PETRON ENGINEERING: Ind-Ra Migrates BB- Rating to Not Cooperating PRASHANTH POULTRY: CRISIL Reaffirms 'D' Rating on INR10.77MM Loan PRIME TECHNOPLAST: CRISIL Reaffirms 'D' Rating on INR50MM Loan PUNJAB METAL: Ind-Ra Puts 'BB-' LT Issuer Rating, Outlook Stable R.R. DWELLINGS: CRISIL Reaffirms 'D' Rating on INR18MM Term Loan SAGAR AUTO: CRISIL Reaffirms B+ Rating on INR2MM Cash Loan SAGAR COTTON: CRISIL Reaffirms B+ Rating on INR9MM Cash Loan SARA CREATION: Ind-Ra Moves BB- Issuer Rating to Not Cooperating SARTHAV INFRASTRUCTURE: CRISIL Reaffirms D Rating on INR20MM Loan SHANTI NIKETAN: CRISIL Reaffirms D Rating on INR6.53MM Term Loan SHREE RAJMOTI: CRISIL Reaffirms 'D' Rating on INR60MM Cash Loan SHRIVISION TOWERS: CRISIL Cuts Rating on INR50MM LT Loan to B SILICON CITY: May Face Insolvency Move SJP INFRACON: CRISIL Reaffirms 'D' Rating on INR25MM Term Loan SPRING MERCHANDISERS: CRISIL Reaffirms D Rating on INR6.5MM Loan SRI KALISWARI: Ind-Ra Moves BB+ Issuer Rating to Not Cooperating SRI NANGALI: CRISIL Reaffirms 'D' Rating on INR22MM Cash Loan SRI NANGALI RICE: CRISIL Reaffirms 'D' Rating on INR54MM Loan STAR CITY: CRISIL Reaffirms B+ Rating on INR9.2MM LT Loan SVASCA INDUSTRIES: Ind-Ra Moves B+ Rating to Not Cooperating T. ASOKAN: CRISIL Lowers Rating on INR5MM Cash Loan to 'B' UMIYA MATA: CRISIL Assigns 'B' Rating to INR4.25MM Term Loan I N D O N E S I A LIPPO KARAWACI: S&P Places 'B+' CCR on CreditWatch Negative M A L A Y S I A MONGOLIAN MINING: Shares Up as it Ends Five Years of Losses S O U T H K O R E A KUMHO TIRE: Meeting Delayed as Doublestar Demands Discount S R I L A N K A BIMPUTH FINANCE: Fitch Affirms 'BB(lka)' Nat'l Long-Term Rating - - - - - ================= A U S T R A L I A ================= AFG 2017-1: S&P Assigns Prelim BB (sf) Rating to Class E Debt ------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to seven of the eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Corporate Trust Ltd. as trustee for AFG 2017-1 Trust in respect of Series 2017-1. The preliminary ratings reflect: S&P said, "Our view of the credit risk of the underlying collateral portfolio, including our view that the credit support is sufficient to withstand the stresses we apply. The credit support for the rated notes comprises note subordination, excess spread and lenders' mortgage insurance (LMI) on 46.3% of the portfolio. Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.0% of the aggregate outstanding amount of the notes, and the principal draw function are sufficient to ensure timely payment of interest." The extraordinary expense reserve of A$150,000 funded by AFG Securities Pty Ltd. on the closing date to meet extraordinary expenses. The reserve is to be topped up from excess spread, if any, to the extent it has been drawn. The counterparty exposure to National Australia Bank Ltd. as liquidity facility provider and Australia and New Zealand Banking Group Ltd. as bank account provider. The transaction documents for the liquidity facility and bank account include downgrade language consistent with S&P Global Ratings' counterparty criteria. A copy of S&P Global Ratings' complete report for AFG 2017-1 Trust in respect of Series 2017-1 can be found on RatingsDirect, S&P Global Ratings' Web-based credit analysis system, at http://www.globalcreditportal.com. PRELIMINARY RATINGS ASSIGNED Class Rating Amount (mil. A$) A1 AAA (sf) 65.00 A2 AAA (sf) 250.00 AB AAA (sf) 22.54 B AA (sf) 6.02 C A (sf) 4.20 D BBB (sf) 1.05 E BB (sf) 0.63 F NR 0.56 BUBS BABY: First Creditors' Meeting Set for August 29 ----------------------------------------------------- A first meeting of the creditors in the proceedings of: -- Bubs Baby Shops Pty Ltd; -- Brisbane Bubs Pty Ltd, trading as Brisbane Bubs & Bubs Aspley; -- Kawana Bubs Pty Ltd, trading as Bubs Boutique Maroochydore & Bubs Boutique Noosa; -- Bubs Baby Shop Gold Coast Pty Ltd; -- Bubs Baby Shop Logan Pty Ltd; -- Bubs City Pty Ltd, trading as Bubs City Fortitude Valley; -- Bubs Baby Shop Tuggarah Pty Ltd; and -- Bubs Baby Shop Rutherford Pty Ltd will be held at the offices of Worrells Solvency & Forensic Accountants, Level 8, 102 Adelaide Street, in Brisbane, Queensland, & Grace Hotel York Room, Level 1, 77 York St, in Sydney, NSW, on Aug. 29, 2017, at 10:30 a.m. Simon Cathro & Christopher Cook of Worrells Solvency were appointed as administrators of Bubs Baby on Aug. 17, 2017. HOME AUSTRALIA: Liquidators Criticize Amount Paid for Land ---------------------------------------------------------- Peter Jean and Renato Castello at The Advertiser reports that liquidators have raised concerns about the amount of money that bankrupt former senator Bob Day's Homestead Homes building company paid Day family members for five blocks of land. Homestead Homes paid a total of AUD182,159 in December 2014 and January 2015 for five lots of land from Mr. Day's children, niece and nephews, The Advertiser relates citing a draft report by McGrathNicol liquidators Matthew Caddy and Barry Kogan. It had been hoped the land could be used as part of the taxpayer- funded National Rental Affordability scheme, but that never occurred, The Advertiser says. According to The Advertiser, Mr. Day on August 20 said Homestead had paid the going rate for the land at Balaklava, north of Adelaide, and the same price was paid for the purchase of blocks from non-family members. Mr. Day's Home Australia purchased the land, but subsidiary company Homestead provided the funds. Home Australia didn't repay Homestead Homes, the draft liquidators' report, as cited by The Advertiser, said. "The liquidators compared the amounts paid by Homestead to each of Mr. Day's relatives against the expected or actual selling price following the appointment of the liquidators," the draft report said, The Advertiser relays. "The liquidators consider that the amounts paid to each relative was greater than the comparable selling price by approximately AUD8000 per lot (on average) or approximately AUD40,000 in total." The Advertiser relates that the liquidators said it would be impractical to try to recover the funds, on a cost-benefit basis. They said the land had been sold to Day family members by Home Australia but then purchased back so it could be used in the rental affordability scheme, the report states. The Advertiser says the program provides financial incentives for the provision of rental homes for Australians on low and moderate incomes. The land was never used for that purpose after the Government decided against proceeding with a new NRAS funding round. Mr. Day said Homestead had paid about AUD30,000 for blocks at Balaklava on which affordable homes were to be built and then onsold, The Advertiser relays. "That's what blocks of land were selling for at the time. There was a dozen there -- some were from relatives and some were not -- but the price was the same as everyone else paid in Balaklava at the time," he told The Advertiser, notes the report. "In fact there were blocks around the corner for AUD50,000 and AUD60,000 per block." According to The Advertiser, the liquidators said evidence suggested the Day family members were repaid based on the cost they originally purchased the land for, along with associated holding costs. "As such, they did not profit on the transactions as intended," The Advertiser quotes the liquidators as saying. "Regardless, the liquidators consider that these transactions did not benefit Homestead and as such, may be considered an uncommercial transaction." The Advertiser relates that Mr. Day said Homestead had built dozens of homes for the affordable rent scheme but was caught with a dozen leftover blocks when the program finished. "Homestead bought the properties, built the houses and then onsold them and got reimbursed by Home Australia," The Advertiser quotes Mr. Day as saying. The Sunday Mail revealed that the liquidators had found Mr. Day had used funds from Homestead Homes to pay for political expenses, including the renovation of his electorate office, The Advertiser relays. The Advertiser adds that the former Family First senator insisted he was meticulous to ensure that Homestead funds were never used for political purposes. About Home Australia Home Australia was a residential new home building group operating in five Australian States under the brands Homestead Homes; Collier Homes; Newstart Homes; Ashford Homes; and Huxley Homes. On Oct. 17, 2016, Mathew Caddy and Barry Kogan of McGrathNicol were appointed as joint and several Liquidators of Home Australia Pty Ltd and wholly owned subsidiaries: -- Homestead Homes Pty Ltd -- Collier Homes Pty Ltd -- Newstart Homes (SE QLD) Pty Ltd -- Ashford Homes Pty Ltd -- Huxley Homes Pty Ltd -- Nationwide Australian Investments Pty Ltd -- Smart Road Property Rentals Pty Ltd ISHERWOOD PROTECTIVE: Second Creditors' Meeting Set for Aug. 29 --------------------------------------------------------------- A second meeting of creditors in the proceedings of Isherwood Protective Services Pty Ltd has been set for Aug. 29, 2017, at 11:00 a.m., at the offices of Boardroom of Chifley Advisory Suite 3.04, Level 3, 39 Martin Place, in Sydney, NSW. 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. 28, 2017, at 4:00 p.m. Gavin Moss and Trent McMillen of Chifley Advisory were appointed as administrators of Isherwood Protective on Aug. 6, 2017. M. WEBSTER: Second Creditors' Meeting Set for August 30 ------------------------------------------------------- A second meeting of creditors in the proceedings of M. Webster Holdings Pty Ltd, formerly trading as Marcs & David Lawrence, has been set for Aug. 30, 2017, at 10:00 a.m., at Chartered Accountants Australia and New Zealand, Level 1, 33 Erskine Street, in Sydney, NSW. 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. 29, 2017, at 5:00 p.m. Andrew James Barnden and Geoffrey Reidy of Rodgers Reidy were appointed as administrators of M. Webster on Feb. 1, 2017. WARE BUILDING: Subcontractors to Pressure Gov't. for Unpaid Bills ----------------------------------------------------------------- Ryan Keen at Gold Coast Bulletin reports that out-of-pocket Commonwealth Games athletes village subcontractors chasing more than a million dollars in unpaid bills plan to pressure the Palaszczuk Government to pay them in the interim. The Bulletin says the collapse on August 18 of Ware Building Pty Ltd -- engaged by site developer Grocon to build 82 athletes townhouses at Parklands -- has left 13 different tradie companies whistling for between AUD18,000 and AUD200,000 each. According to the report, representatives from each subcontractor met at the Oxenford Tavern on August 21 to plot their next move, agreeing to engage the services of specialist liquidation lawyer James Loel. The Bulletin relates that fellow barrister Chris Garlic, who ran the pub meeting, said they should all pressure the State Government to pay them while the mess is untangled. "We want to call on the Palaszczuk Government to consider paying all of you all of your money even if it's paid as a loan in the interim so you can all pay your debts," the report quotes Mr. Garlic as saying. A spokesman for Games Minister Kate Jones has told the Gold Coast Bulletin she wanted to see all subbies on the site paid on time and Grocon had a banking guarantee it could draw down on for "exactly this purpose." The Bulletin adds that the liquidator said Ware has outstanding claims against Grocon for AUD1 million plus AUD1 million in retention payments. Grocon has declined to comment on an allegation it hit Ware with a AUD2.5 million claim before it collapsed and has said it is liaising with subcontractors as a "high priority," the Bulletin adds. WEBSTER ASSET: Second Creditors' Meeting Set for August 30 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Webster Asset Pty Ltd has been set for Aug. 30, 2017, at 12:00 p.m., at the offices of Chartered Accountants Australia and New Zealand, Level 1, 33 Erskine Street, in Sydney, NSW. 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. 29, 2017, at 4:00 p.m. Andrew James Barnden and Geoffrey Reidy of Rodgers Reidy were appointed as administrators of Webster Asset on Feb. 1, 2017. ========= C H I N A ========= CAR INC: Moody's Lowers CFR to Ba3; Outlook Stable -------------------------------------------------- Moody's Investors Service has downgraded CAR Inc.'s corporate family and senior unsecured ratings to Ba3 from Ba2. The ratings outlook is revised to stable from negative. RATINGS RATIONALE "The downgrade reflects Moody's views that CAR's current situation of reduced profitability and moderately high levels of debt leverage are unlikely to improve over the next 12-18 months, given the strong competition in China's auto rental industry," says Gerwin Ho, a Moody's Vice President and Senior Analyst, and the Lead Analyst for CAR. The strong competition and lower contribution from higher margin fleet rental business resulted in a fall in CAR's rental gross profit margins and total gross profit margins to 41.8% and 27.5% respectively in 1H 2017 from 44.8% and 37.2% in 1H 2016. The decline in total gross margins reflects: (1) lower rental prices to capture market share; (2) higher depreciation due to fleet renewal; (3) lower contributions from the company's higher margin fleet rental business; and (4) lower gross margins for used vehicle sales. Nevertheless, Moody's expects CAR's rental gross margins and total gross margins to stabilize at about 39.4% and 28.9% over the next 12-18 months, based on Moody's expectation that the key car rental operators in China (A1 stable) will not take any drastic actions to further intensify competition in the sector. Given that CAR has to grow its scale to capture market share and stay competitive through offering a young fleet, Moody's expects that the company's debt levels will likely grow by single-digit percentages year-on-year in 2018 and 2019. Moody's expects that CAR's moderate growth in debt and EBITDA will result in a debt leverage - as measured by adjusted debt/EBITDA - that will stay unchanged at around 3.9x-4.0x over the next 12-18 months. Such levels, which are moderately high, position the company in the lower Ba rating level. The ratings downgrade also considers the company's history of share repurchases, which totaled RMB1 billion from the beginning of 2016 to end-June 2017. Such a level of cash outflow is negative to the company's ratings because it weakens its financial buffer when it faces strong competition. CAR's Ba3 corporate family rating is supported by the company's leadership in China's growing car rental market. It also factors in its proactive financial management and sufficient liquidity position. The financial risk that the company faces from its moderately high debt leverage is partly buffered by the fair size of its cash balance. Its unrestricted cash balance totaled RMB4.9 billion at end-June 2017, which was more than sufficient to cover its short-term debt of RMB2.5 billion. The Ba3 ratings also consider the company's business model, which exhibits a certain level of financial flexibility, as seen by the short lead time for its fleet acquisitions, its asset-light network, and its ease of asset disposals. On the other hand, the ratings also reflect the fact that CAR faces: (1) competition from car rental companies and indirect competition from non-car rental companies that provide transportation services; and (2) regulatory risks in terms of controls on vehicle ownership, the traffic points system, local regulation of the automotive rental industry and regulations related to online chauffeured car services. The stable ratings outlook takes into account Moody's expectation that CAR will maintain its leading market position, stable level of debt leverage, and good liquidity position, while expanding its business. Ratings upgrade pressure could arise if CAR: (1) maintains its leading market position, grows in scale, and demonstrates resilience in down-cycles; (2) demonstrates stability in its profit margins; (3) maintains prudent financial management and strong liquidity; and (4) shows improved credit metrics, such as a net debt/EBITDA below 1.0x on a sustained basis. On the other hand, ratings downgrade pressure could arise if CAR exhibits: (1) declining revenues; (2) a weakening liquidity position, such as cash/short-term debt below 1x; or (3) a deterioration in its credit metrics, due to increased competition, shareholder distributions, aggressive expansion and acquisitions. Credit metrics indicative of ratings downgrade pressure include net debt/EBITDA exceeding 2.5x on a sustained basis. The principal methodology used in these ratings was Equipment and Transportation Rental Industry published in April 2017. CAR Inc., founded in 2007 and headquartered in Beijing, provides car rental services, including car rentals and fleet rentals in China. CAR listed on the Hong Kong Stock Exchange in September 2014. At June 30, 2017, CAR had a total fleet of 100,029 company-owned vehicles. It commands a leading position in China by fleet size and revenue. During 1H 2017, it reported net sales of RMB3.6 billion. And, at June 30, 2017, CAR's key shareholders included Legend Holdings (24.8%); UCAR Technology Inc. (28.4%); and private equity firm, Warburg Pincus (11.5%). CAR INC: S&P Lowers CCR to BB on Weaker-Than-Expected Performance ----------------------------------------------------------------- S&P Global Ratings lowered its long-term corporate credit rating on China-based car rental company CAR Inc. to 'BB' from 'BB+'. The outlook is stable. S&P said, "We also lowered our long-term issue rating on CAR's outstanding senior unsecured notes to 'BB' from 'BB+'." S&P said, "We lowered the ratings to reflect a significant decline in CAR's long-term fleet rental business, which, in our view, signals a deterioration in its competitive position. Since early 2017, the company has aggressively cut prices in the short- term rental business to try to gain market share. Although the move increased utilization, it also had a large negative impact on profitability. We therefore lowered our expectation of CAR's profitability over the next two years. "We believe fleet demand from UCAR Inc., as CAR's most important customer in long-term fleet rental business, will drop and that will directly affect CAR's overall rental revenue and EBIT margin. UCAR rents vehicles from CAR and contributed about 20% of rental revenue in the first half of 2017, a significant decline from 40% in 2016. Profitability in this business is higher than in short-term car rentals. The sharp decline in UCAR's revenue contribution caused CAR to change its business strategy by shifting its focus to other corporate customers, which lowers the overall earnings visibility of the company. We expect CAR to face high competition in the long-term fleet rental business, which creates uncertainties on the segment's growth. "We believe competition in the car rental business remains high even for market leaders such as CAR. This is evident from CAR's recent price cut in its short-term car rental business; its average daily rental rate declined to Chinese renminbi (RMB) 234 in the first half of 2017 from RMB307 in the same period of 2016. CAR is targeting a further increase in market share. In our view, the company is able to maintain a stable growth of its car short- term rental revenue by improving fleet utilization and rental days. But this will potentially pressure the residual value of existing fleet and its depreciation expense. "Despite the cross-holding structure with UCAR, we expect CAR to remain operational and financially independent. CAR's recent share buyback scheme will trigger shareholding increase by its existing shareholders, including UCAR. However, we expect UCAR to ensure that its shareholding in CAR remains below 30% and maintain CAR's listing status. CAR's total related-party transactions with UCAR on long-term fleet rentals and used-car disposals are well disclosed and we do not expect any further increase of related-party transactions over the next 12 months. "We revised our base-case assumption due to changes in CAR's long-term fleet rental business and pricing strategy, which lowered profitability. We lowered our projection for EBIT interest coverage to 2.1x-2.6x for the next 12 months, from 3.5x- 4.0x previously. This reflects the company's declined EBIT margin and increased finance cost on an elevated debt level. The downward revision reflects our expectation of lower earnings contribution from the long-term fleet rental business and aggressive price competition in the short-term rental business. "In our forecast, CAR will keep expanding fleet size to feed vehicle retirement and rental growth. The total number of vehicles will grow by 10,000-15,000 each year in 2017 and 2018. We estimate that CAR's net capital spending for fleet expansion will stay at RMB2.5 billion-RMB3.0 billion in the coming 12 months. At the same time, we believe the company will refrain from making aggressive debt-funded acquisitions or investments in the next 24 months. As a result, CAR's free operating cash flow should improve and allow the company to deleverage. "The stable outlook reflects our view that CAR will be able to stabilize its profitability and interest servicing capacity while holding its market position over the next 12 months. The outlook also reflects our expectation that CAR will keep an independent operation from UCAR and continue to lower the number of related- party transactions. "Rating downside is unlikely in the coming 12 months. We could lower the rating on CAR if we believe UCAR exerts a high degree of control over CAR, or the companies become more economically entwined. This is based on our assumption that the combined entity will have meaningfully weaker credit measures, thus capping CAR's credit profile. A further increase in related-party transactions or earnings contributions from UCAR to CAR would indicate such a trend. "We also could lower the rating if CAR's EBIT interest coverage falls below 1.3x. This could happen if: (1) the company makes material debt-funded expansions or acquisitions; or (2) operating efficiency of its car rental business deteriorates, which signals weakening competitive position and leads to significant erosion in profitability. "We could raise the rating if the company executes its growth strategy in China and demonstrates a record of prudent management while maintaining its operating margin and financial strength." WEST CHINA CEMENT: Robust 1H 2017 Results Support Moody's B1 CFR ---------------------------------------------------------------- Moody's Investors Service says that West China Cement Limited's financial results for the six month to June 30, 2017 (1H 2017) support its B1 corporate family rating and B1 senior unsecured bond rating as well as its stable outlook. "West China Cement's robust 1H 2017 results deliver credit metrics that well position the company at its B1 rating," says Gerwin Ho, a Moody's Vice President and Senior Analyst. WCC's revenue grew 30% year-on-year in 1H 2017 to RMB2.1 billion, driven by a 24% year-on-year improvement in its average selling prices and a 4% year-on-year growth in its sales volumes. Greater supply and pricing discipline by cement makers in 1H 2017 helped support cement prices in WCC's key markets in Shaanxi, Guizhou and Xinjiang provinces. WCC's profitability improved in 1H 2017. Its gross margin expanded to 22.1% from 9.4% in 1H 2016 as the rise in its average selling price outpaced the rise in its unit cost of goods sold. The company's EBITDA margin also improved to about 38.9% in the 12 months ending June 2017 from 35.7% in 2016. Higher revenues, combined with improved profitability, lifted WCC's EBITDA and improved the company's debt leverage - as measured by its adjusted debt/EBITDA - to about 2.4x in the 12 months ending June 2017 from 3.0x in 2016. Moody's expects that WCC's sales volume will grow about 2% year- on-year and average cement prices will rise about 8%-10% year-on- year over the next 12-18 months when compared with the levels in 2016, based on Moody's expectation that cement makers in WCC's key markets will maintain discipline in terms of their supply levels and pricing. As a result, Moody's forecasts that WCC's debt/EBITDA will reach about 2.6x over the next 12-18 months. This level of leverage supports the company's B1 corporate family rating. WCC's cash balance of RMB1.6 billion at end-June 2017, including restricted bank deposits, is adequate to cover its short-term debt of RMB974 million, resulting in its cash/short-term debt ratio improving to 164% at end-June 2017 from 106% at end-2016. Moody's expects that WCC will remain free cash flow positive over the next 12-18 months, which in turn will support the maintenance of a healthy cash position. The principal methodology used in these ratings was Building Materials Industry published in Januray 2017. West China Cement Limited is one of the leading cement producers by capacity in Shaanxi Province. At end-June 2017, the company's annual cement production capacity measured 29.2 million tons. Its revenues totaled RMB2.1 billion in 1H 2017. ================ H O N G K O N G ================ CHINA MEDICAL: No Damages Award for Deutsches From Fidelity ----------------------------------------------------------- Jon Hill, writing for Bankruptcy Law360, reports that a Financial Industry Regulatory Authority (FINRA) arbitration panel did not fully support William and Peter Deutsch's allegations that Fidelity Brokerage LLC made them lose their chance of taking control of China Medical Technologies Inc. through stock purchases. "Whatever Fidelity did or did not do would not have altered the failure of claimants' investment because the events that doomed the strategy were either external to Fidelity or internal to [China Medical]," the panel said, Law360 cites. Law360 relates that the Deutsches started purchasing China Medical shares in 2011, grew their stake in the company to nearly 12 million shares by mid-2012, and eventually became interested in acquiring a controlling interest in China Medical to be able to make a deal with a strategic buyer and save the company from liquidation. The Deutsches said Fidelity foiled this effort when it stopped accepting China Medical stock purchase orders from them in July in the belief that they were "effectuating a short squeeze in the stock," Law360 points out. The panel did not agree with awarding damages to the Deutsches for Fidelity's alleged misconduct; howeve, it agreed with the Deutsches that Fidelity had botched its responsibilities in that the brokerage failed to communicate effectively with the Deutsches before cutting off their stock purchases, Law360 relays. About China Medical China Medical Technologies Inc., a maker of diagnostic products, filed a Chapter 15 bankruptcy petition in New York to locate money fraudulently transferred by its principals. The Debtor, which has been taken over by a trustee, is undergoing corporate winding-up proceedings before the Grand Court of the Cayman Islands. Kenneth M. Krys, the joint official liquidator, wants U.S. courts to recognize the Cayman proceeding as the "foreign main proceeding". The liquidator filed a Chapter 15 petition for China Medical (Bankr. S.D.N.Y. Case No. 12-13736) on Aug. 31, 2012. Curtis C. Mechling, Esq., at Stroock & Stroock & Lavan, LLP, in New York, serves as counsel. China Medical listed as much as $500 million in assets and debt. Cosimo Borrelli and Yuen Lai Yee (Liz) on Nov. 29, 2012, were appointed as liquidators of China Medical Technologies Inc. The liquidators may be reached at: Cosimo Borrelli Yuen Lai Yee (Liz) Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong ========= I N D I A ========= A K LUMBERS: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned A K Lumbers Limited (AKLL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR45.0 mil. Fund-based limits assigned with IND BB- /Stable/IND A4+ rating; and -- INR90.5 mil. Non-fund-based limits assigned with IND A4+ rating. KEY RATING DRIVERS Ind-Ra has taken a consolidated view of AKLL, Jindal Wood Products Private Limited ('IND BB-'/Stable) and Punjab Metal Works Private Limited ('IND BB-'/Stable) while arriving at the ratings, given the strong legal and operational linkages among them. All the companies operate in the similar line of business and have a common management. The ratings reflect the group's moderate scale of operations, volatile EBITDA margin and moderate-to-weak credit metrics owing to the slowdown in the end-user industry and fluctuations in raw material prices. As per FY17 provisional financials, consolidated revenue was INR1,061.05 million (FY16: INR955.15 million), EBITDA margin was 4.15% (4.50%), interest coverage (operating EBITDA/gross interest expenses) was 1.38x (1.27x) and total leverage (total adjusted debt/operating EBITDA) was 10.40x (10.12x). The ratings also factor in the company's tight liquidity position with around 94% average utilisation of fund-based limits during the 12 months ended June 2017. However, the ratings are supported by promoter's experience of more than two decades in the timber business. RATING SENSITIVITIES Negative: Deterioration in the credit metrics on a sustained basis will be negative for the ratings. Positive: A significant improvement in the top line leading to an improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in 2000, AKLL is engaged in trading and processing of timber logs, mainly teak and hard wood. Mr. Atul Jindal is the promoter. On a standalone basis, revenue was INR359.44 million in FY17P (FY16: INR347.15 million), EBITDA margin was 4.54% (5.27%), interest coverage was 1.26x (1.22x) and net leverage (total adjusted net debt/operating EBITDAR) was 9.81x (8.38x). ABHIRAMA STEELS: Ind-Ra Moves D Issuer Rating to Not Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Abhirama Steels Limited's (ASL) Long-Term Issuer Rating to 'IND D' from 'IND BBB-'. The ratings have also been migrated to the non- cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is on the basis of best available information. The rating will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR16.2 mil. Term loan (Long-term) issued on March 2011, due on February 2018 downgraded and migrated to Non-Cooperating category with IND D(ISSUER NOT COOPERATING) rating; -- INR400 mil. Fund-based working capital facility (Long- term/Short-term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT CO-OPERATING) rating; and -- INR200 mil. Proposed fund-based working capital facility (Long-term/Short-term) downgraded and migrated to non- cooperating category with Provisional IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information KEY RATING DRIVERS The rating action reflects delays in debt servicing, details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in a rating upgrade. COMPANY PROFILE Incorporated in 2006, ASL is a Hyderabad-based manufacturer of thermo mechanical treatment steel bars and mild steel billets with an installed capacity of 1,80,000 tonnes per annum. ANMOL ENTERPRISES: CRISIL Reaffirms 'D' Rating on INR15MM Loan -------------------------------------------------------------- CRISIL has been consistently following up with Anmol Enterprises (Anmol) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 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 Anmol Enterprises. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Anmol Enterprises is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. Anmol is a project-specific firm promoted by Ahmedabad-based Mr. Arvind Patel and his family members. The firm is developing a residential project in Gota, Ahmedabad. It commenced construction in January 2012. AROMA REALTIES: CRISIL Reaffirms 'D' Rating on INR20MM Loan ----------------------------------------------------------- CRISIL has been consistently following up with Aroma Realties Limited (ARL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 20 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 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 Aroma Realties 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 Aroma Realties 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'. ARL, incorporated in 2008 and based in Ahmedabad, constructs residential and commercial projects. It is owned and managed by Mr. Mavjibhai Desai and his family. ARYACON CONTRACTORS: CRISIL Reaffirms B+ Rating on INR6MM Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Aryacon Contractors and Engineers (ACE). The ratings continue to reflect its small scale of operations and large working capital requirement. These weaknesses are partly offset by its moderate financial risk profile and extensive experience of partners in the civil construction industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.91 CRISIL A4 (Reaffirmed) Cash Credit 6.00 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility .09 CRISIL B+/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weakness * Small scale of operations: ACE is a small player in the civil construction industry with estimated operating income of INR 12 crores in fiscal 2017. The revenue profile of the firm is dependent on timely winning and execution of orders. In addition, ACE executes projects only for Kerala state electricity board, further constraining its revenue profile. * Large working capital requirement: Working capital requirement of the company remains high marked by estimated Gross current (GCA) of around 446 days as on March 31, 2017. With low bargaining power over its customer, GCA is expected to remain high over the medium term. Strengths * Moderate financial risk profile: Financial risk profile continues to remain moderate marked by healthy capital structure and average debt protection metrics. ACE's capital structure is healthy marked by TOLTNW of 0.93 time as on 31st March, 2017 while the debt protection metrics remain average with ICR of about 3 time in fiscal 2017. * Promoters' extensive experience in the construction industry: The promoters of the firm have an extensive experience in construction industry for around two decades and over the period have established good relationship with various suppliers and kerala state electricity board. Outlook: Stable CRISIL believes that ACE will maintain its business risk profile over the medium term backed by the promoters' extensive experience and moderate order book position. The outlook may be revised to 'Positive' in case of significant improvement in scale of operations along with geographical diversification of its revenues and sustenance of profitability while improving's its working capital management. Conversely, the outlook may be revised to 'Negative', if the firm registers less than expected accruals or if it undertakes any large additional debt-funded capex leading to deterioration in its financial risk profile or pressure on liquidity due to further stretch in working capital requirements. Establish in 2002, Aryacon Contractors & Engineers (ACE) based in Kerala, is promoted by Mr. Gireesh G Nair & Mr. S. Shyam. ACE is engaged in construction of tunnels for hydroelectric projects, power houses, dams, and other types of heavy construction works mainly in Kerala ACE reported net profit of INR0.81 crore on operating income of INR8.9 crores in fiscal 2016 against net profit of INR0.85 crore on operating income of INR12.51 crores in fiscal 2015. ASIA-PACIFIC INSTITUTE: CRISIL Reaffirms D Rating on INR18MM Loan ----------------------------------------------------------------- CRISIL has been consistently following up with Asia-Pacific Institute of Management (A Unit of All India Asian Educational Foundation) (AIAEF) for obtaining information through letters and emails dated April 13, 2017 and May 4, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 18 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 Asia-Pacific Institute of Management (A Unit of All India Asian Educational Foundation). 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 Asia-Pacific Institute of Management (A Unit of All India Asian Educational Foundation) 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'. AIAEF was set up in 1996 by Mr. A K Shrivastav and his family members. The society operates APIM, which provides postgraduate courses in business administration. ATMIYA ENGINEERING: CRISIL Reaffirms D Rating on INR5.17MM Loan --------------------------------------------------------------- CRISIL has been consistently following up with Atmiya Engineering and Plastics (AEP) for obtaining information through letters and emails dated April 21, 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 0.4 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 3.43 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Working Capital 5.17 CRISIL D (Issuer Not Term Loan 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 Atmiya Engineering and Plastics. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Atmiya Engineering and Plastics 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'. AEP, established in 1999, is based in Vadodara. It is promoted by Mr. Nimesh Patel. The firm manufactures plastic parts for air- coolers. BAPASHREE INFRA: CRISIL Reaffirms D Rating on INR20MM Loan ---------------------------------------------------------- CRISIL has been consistently following up with Bapashree Infrastructure Private Limited (BIPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 20 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 Bapashree 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 Bapashree 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 D'. BIPL, set up in 2007 by Mr. Jagdish Patel and Mr. Ketan Patel, is engaged in residential real estate development in Ahmedabad. It has two ongoing projects. BESTO TRADELINK: CRISIL Reaffirms 'D' Rating on INR11MM Loan ------------------------------------------------------------ CRISIL has been consistently following up with Besto Tradelink Private Limited (BTPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Packing Credit 3 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 11 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 Besto Tradelink 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 Besto Tradelink 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'. Incorporated in 1997, BTPL trades in commodities, including agro- commodities (primarily rice), metals, cotton, and fabrics. The company is based in Ahmedabad (Gujarat) and is promoted by Mr. Rakesh Patel and his family. COSMOS INDUSTRIES: Ind-Ra Ups LT Issuer Rating to 'BB'/Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Cosmos Industries Limited's (CIL) Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR620 mil. Fund-based working capital limits Long-term rating upgraded; Short-term rating affirmed with IND BB/Stable/IND A4+ rating. KEY RATING DRIVERS The upgrade reflects an improvement in CIL's overall credit profile, though it remains weak due to the company's presence in the highly regulated, cyclical and working capital intensive the sugar industry. According to FY17 financials, the revenues was INR1,450.1 million (FY16: INR1,163.15 million), EBITDA margins were 11.37% (6.45%), gross coverage (operating EBITDA/gross interest expense) was 2.49x (1.06x) and net leverage (total adjusted net debt/operating EBITDA) was 6.4x (14.99x). The increase in the revenues is attributable to better price realisations while sales volumes remaining almost the same. The easing of the raw material prices coupled with the government of Punjab's subsidy programme for sugarcane manufacturers led to the improvement in the EBITDA margins. The liquidity is comfortable as evident from the average 56% utilisation of the working capital facilities during the 12 months ended July 2017. RATING SENSITIVITIES Negative: A decline in the profitability, resulting in sustained deterioration of the credit metrics, will be negative for the ratings. Positive: A significant improvement in the overall revenue while maintaining the credit metrics will be positive for the ratings. COMPANY PROFILE Established in 1955, CIL owns a 4,000 tonnes crushed per day sugar manufacturing unit in Dhuri, Sangrur district, Punjab. DELSEA EXPORTS: CRISIL Lowers Rating on INR4MM Loan to 'B' ---------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Delsea Exports Private Limited (DEPL) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'; while reaffirming the rating on the short-term facilities at 'CRISIL A4' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 10 CRISIL A4 (Reaffirmed) Packing Credit 4 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The rating downgrade reflects weakening of DEPL's business risk profile marked by declining operating performance resulting in lower-than-expected cash accruals. Revenue dropped to INR 17 crores estimated for fiscal 2017 from INR22 crores in fiscal 2014, on account of intense competition in the industry. Consequently cash accrual was also low, estimated at around INR0.3 crore as against INR0.9 crore during the said period. Subdued operating performance and high dependence of working capital debt has also resulted in below-average financial risk; Gearing and interest cover were 3.7 times and 1.3 times respectively estimated for fiscal 2017. The ratings also reflect DEPL's modest scale of operations in the intensely competitive seafood industry and its below-average financial risk profile. These rating weaknesses are partially offset by the extensive industry experience of DEPL's promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in intensely competitive marine seafood industry - DEPL's scale of operations is modest, as reflected in its estimated operating income of about INR17 crores in fiscal 2017 (refers to financial year, April 1 to March 31). The seafood export industry is highly fragmented, marked by the presence of several small players operating in India's coastal areas. * Below-average financial risk profile ' Financial risk profile continues to below-average due to modest networth of INR2.3 crores and gearing of 3.7 times estimated as on March 31, 2017. Interest coverage was 1.3 times in the said year. Strength * Extensive industry experience of promoters - DEPL benefits from the extensive industry experience of its promoters, who have over two decades of experience in the seafood industry. The company derives its revenue from exports, primarily to Europe, the Middle East, and Japan. DEPL's product portfolio includes squids, octopus, shrimp, and cuttlefish. Outlook: Stable CRISIL believes that DEPL will continue to benefit over the medium term from its promoter's experience in the seafood industry. The outlook may be revised to 'Positive' if the company significantly scales up its operations, while improving its operating profitability and working capital management, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if DEPL's accruals decline or if its working capital management deteriorates, weakening the financial risk profile, particularly its liquidity. DEPL is a Kochi (Kerala)-based exporter of processed marine products. Its operations are managed by Mr. Baburaj. DEPL reported Profit after tax (PAT) of INR0.1 crore on revenues of INR22 crores in fiscal 2016, as against INR0.1 crore and INR15 crores, respectively in fiscal 2015. GEOMAX MINES: CRISIL Reaffirms 'B' Rating on INR15MM Cash Loan -------------------------------------------------------------- CRISIL has reaffirmed its rating on the bank facilities of Geomax Mines & Minerals Pvt Ltd (GMPL) at 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable (Removed from 'Issuer not cooperating'; Rating Reaffirmed) The rating continues to reflect GMPL's modest scale of and working capital intensive operations, and exposure to fluctuation in bauxite prices. These weaknesses are mitigated by purchase and sales agreements with mine owners and key customer, respectively. Key Rating Drivers & Detailed Description Weakness * Modest scale of and working capital intensive operations - Scale of operations is modest, as reflected in operating income of INR7.57 crore in fiscal 2017. Topline declined sharply to INR7.57 crore in fiscal 2017 from INR42 crore in fiscal 2016 on account of ban on mining in Odisha from June 2016 to May 2017 due to lack of regulatory clearances. Operating income should improve over the medium term as the ban has been removed and mines are operational. * Working capital intensive operations: Operations entail large working capital requirement due to stretched receivables and high current assets owing to large advances and security deposit given to the miners, which is expected to result in gross current assets of above 300 days over the medium term. Strength * Extensive experience of the promoter: Benefits from the promoter's (Mr Chava Venu Gopal) decade-long experience in the bauxite trading business and his sound understanding of the industry should support business risk profile. Outlook: Stable CRISIL believes GMPL will maintain its credit risk profile backed by the extensive experience of its promoter in bauxite trading and its agreements with mine owners and key customer. The outlook may be revised to 'Positive' if high cash accrual or efficient working capital management strengthens liquidity and debt protection metrics. The outlook may be revised to 'Negative' if low cash accrual, stretch in working capital cycle or debt-funded capex weakens financial risk profile, especially liquidity. GMMPL incorporated in 2009 trades in bauxite ores. Operations are managed by Ranchi-based Mr Chava Venu Gopal who has over 20 years of experience in the mining industry. GMMPL reported net profit of INR0.09 crore on revenues of INR7.56 crore for fiscal 2017; the net profit was INR0.44 crores on revenues of INR41.98 crore for fiscal 2016. GREEN WOODCRAFTS: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan ---------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Green Woodcrafts Pvt Ltd (GWPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3 CRISIL B+/Stable (Reaffirmed) Letter of credit & Bank Guarantee 11 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 2.82 CRISIL B+/Stable (Reaffirmed) Term Loan 0.18 CRISIL B+/Stable (Reaffirmed) The ratings reflect modest scale of operations in the intensely competitive plywood industry and large working capital requirement. These weaknesses are partially offset by experience of promoters and above-average financial risk profile. Key Rating Drivers & Detailed Description Weakness *Modest scale of operations and intense competition: Scale has been modest, with operating income estimated at INR30 crore in fiscal 2017, due to presence in the highly competitive decorative plywood segment. *Large working capital requirement: Gross current assets are estimated at 250 days as on March 31, 2017, due to sizeable receivables and inventory of around 135 days and 115 days, respectively. Strengths *Experience of promoters: Benefits from promoters' experience (around two decades), healthy relationships with customers and suppliers and moderate visibility of the Flamingo brand, are likely to continue supporting the business risk profile. *Above-average financial risk profile: Networth and TOLTNW were moderate at INR9.69 crore and 1.0 time, respectively, as on March 31, 2017. Interest coverage and net cash accrual to total debt ratios were also adequate at 1.9 times and 0.2 time, respectively, in fiscal 2017. Outlook: Stable CRISIL believes GWPL will continue to benefit over the medium term from the promoters' experience. The outlook may be revised to 'Positive' if revenue and profitability increase substantially with steady capital structure. Conversely, the outlook may be revised to 'Negative' if stretched working capital cycle weakens financial risk profile. GWPL was established in 1996 by Delhi-based Mr Narendra Khetawat and family. The company manufactures plywood and veneer under the brands, Flamingo and Saffron, in its facility at Rohtak, Haryana. Net profit is estimated at INR0.51 crore on sales of INR30.00 crore in fiscal 2017, against INR0.34 crore and INR26.43 crore, respectively, in fiscal 2016. INDIA COKE: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned India Coke And Power Private Limited (ICPPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is: -- INR1,000 mil. Non-fund-based working capital limits assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect ICPPL's moderate operational track record of seven years and vulnerability of operating margins to forex and commodity price fluctuations. Post suffering forex losses till FY16, ICPPL has set up a team which continuously monitors forex movements and takes appropriate hedging decisions. This initiative has resulted in a forex gain in FY17; however, the company's ability to report forex gains on a sustained basis needs to be seen. While the company did not have any long-term debt obligations earlier, Ind-Ra expects ICPPL's credit metrics would stretch over FY18 and FY19, given its inherently low EBITDA margins and the INR1,000 million letter of credit limit being raised. The ratings, however, are supported by ICPPL's healthy scale of operations with the top line increasing at a CAGR of 137% to INR12,534 million in FY17 over INR914 million in FY14. Also, Ind- Ra expects the company to sustain this scale over FY18 and FY19, given ICPPL's established relations with its customers and suppliers. Also, the company has adequate liquidity, given the absence of any long-term debt obligations and positive cash flow from operations of INR138 million in FY17. Moreover, ICPPL benefits from its promoters' experience of more than two decades in the steel industry. RATING SENSITIVITIES Positive: A sustained improvement in the EBITDA margins and credit metrics (in line with management's expectations) could lead to a positive rating action. Negative: A sharp decline in the top line and/or weaker-than- expected credit metrics could lead to a negative rating action. COMPANY PROFILE Incorporated in 2010, ICPPL is engaged in the trading of metallurgical coke, coking coal, thermal/steam coal, pig iron, iron ore, pet coke, chrome-ore, manganese ore, anthracite, and ferro alloys. The company is promoted by Mr. Anirudh Misra. JAYAHO AGRI: CRISIL Reaffirms 'D' Rating on INR12MM Cash Loan ------------------------------------------------------------- CRISIL has been consistently following up with Jayaho Agri Ventures Private Limited (JAVPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12 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 Jayaho Agri Ventures 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 Jayaho Agri Ventures 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'. Set up in 2009 by Mr. Nagothu Sleeva Raju and his family members, JAVPL trades in tobacco. The company is based in Guntur district, Andhra Pradesh. JINDAL WOOD: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Jindal Wood Products Private Limited (JWPPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are given below: -- INR40 mil. Fund-based limits assigned with IND BB-/Stable/IND A4+ rating; and -- INR170 mil. Non-fund-based limits assigned with IND A4+ rating. KEY RATING DRIVERS Ind-Ra has taken a consolidated view of JWLL, A K Lumbers Limited ('IND BB-'/Stable) and Punjab Metal Works Private Limited ('IND BB-'/Stable) while arriving at the ratings, given the strong legal and operational linkages among them. All the companies operate in the similar line of business and have a common management. The ratings reflect the group's moderate scale of operations, volatile EBITDA margin and moderate-to-weak credit metrics owing to the slowdown in the end-user industry and fluctuations in raw material prices. As per FY17 provisional financials, consolidated revenue was INR1,061.05 million (FY16: INR955.15 million), EBITDA margin was 4.15% (4.50%), interest coverage (operating EBITDA/gross interest expenses) was 1.38x (1.27x) and total leverage (total adjusted debt/operating EBITDA) was 10.40x (10.12x). The ratings also factor in the company's comfortable liquidity position with around 79% average utilisation of fund-based limits during the 12 months ended June 2017. However, the ratings are supported by promoter's experience of more than two decades in the timber business. RATING SENSITIVITIES Negative: Deterioration in the credit metrics on a sustained basis will be negative for the ratings. Positive: A significant improvement in the top line leading to an improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in 1990, JWPPL is engaged in trading and processing of timber logs, mainly teak and hard wood. On a standalone basis, revenue was INR483.11 million in FY17P (FY16: INR425.52 million), EBITDA margin was 3.37% (4.02%), interest coverage was 1.21x (1.21x) and net leverage (total adjusted net debt/operating EBITDAR) was 13.17x (11.82x). KISHORI INDUSTRIES: CRISIL Reaffirms 'B' Rating on INR15MM Loan --------------------------------------------------------------- CRISIL has reaffirmed its rating on the long-term bank facility of Kishori Industries (KI) at 'CRISIL B/Stable'. The rating continues to reflect a modest scale of operations in the intensely competitive cotton industry, large working capital requirement, and weak financial risk profile. These weaknesses are partially offset by its partners' extensive experience. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable (Reaffirmed) Analytical Approach CRISIL has treated unsecured loans of INR0.5 crore as on March 31, 2017, as neither debt nor equity since they are expected to remain in the firm over the medium term and a lower interest rate is charged compared to bank rate. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in the intensely competitive cotton industry: Scale is modest, as reflected in revenue estimated at INR65 crore for fiscal 2017, and will be constrained by the intense competition in the cotton industry. * Large working capital requirement: Gross current assets are sizeable, estimated at 160-165 days as on March 31, 2017, due to high inventory days. Since cotton is a seasonal crop, it is stocked up during the season and used throughout the year. * Weak financial risk profile: Modest networth, estimated at INR5.75 crore as on March 31, 2017, and a leveraged capital structure, with total outside liabilities to tangible networth ratio of 3.9 times, keeps the financial risk profile weak. Strength Partners' extensive experience: Partners' industry experience of 15 years supports the business risk profile. Outlook: Stable CRISIL believes KI will continue to benefit over the medium term from its partners' extensive experience. The outlook may be revised to 'Positive' if substantial increase in revenue and profitability leads to better than expected cash accruals, or sizeable capital infusion strengthens the financial risk profile. Conversely, the outlook may be revised to 'Negative' if considerable decline in revenue and profitability, stretch in working capital cycle or debt funded capital expenditure leads to deterioration in the financial risk profile, especially liquidity. Established in 2003, KI is a partnership firm. It gins and presses cotton, and extracts cotton seed oil at its unit in Beed. The firm is owned and managed by Mr. Sharad Sarda and Mr. Rameshlal Sarda. For fiscal 2017, on a provisional basis, KI's profit after tax was INR0.18 crore on net sales of INR65.3 crore against INR0.08 crore and INR51.27 crore, respectively, for fiscal 2016. M C SPINNERS: Ind-Ra Migrates D Issuer Rating to Not Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M C Spinners Private Limited's (MCS) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the surveillance 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: -- INR256.5 mil. Term loan (Long-term) migrated to non- cooperating category with IND D(ISSUER NOT COOPERATING) rating; -- INR150 mil. Fund-based limits (Long-term) migrated to non- cooperating category with IND D(ISSUER NOT COOPERATING) rating; and -- INR22 mil. Non-fund-based limits (Short-term) migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating; Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Jan. 22, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE MCS is a cotton yarn manufacturer based in Gobichettipalayam, near Coimbatore. The company began operations in October 2011 and has a cotton yarn manufacturing capacity of 26,208 spindles. M S COLD: Ind-Ra Migrates BB- Issuer Rating to Not Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M.S. Cold Storage's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the surveillance 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 action is given below: -- INR90.1 mil. Term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 7, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE M.S. Cold Storage is a sole proprietary concern set up by S K Mohammed Safiulla in 2008. It owns and operates two cold storage units with a total capacity of 10,000MT in Mettupalayam, near Coimbatore, Tamil Nadu. NAGA SINDHU: CRISIL Reaffirms 'D' Rating on INR14.45MM Term Loan ---------------------------------------------------------------- CRISIL has been consistently following up with Naga Sindhu Spinning and Ginning Mills Private Limited (Naga Sindhu) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Cash 2.06 CRISIL D (Issuer Not Credit Limit Cooperating; Rating Reaffirmed) Term Loan 14.45 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Naga Sindhu Spinning and Ginning 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 Naga Sindhu Spinning and Ginning 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 D'. Incorporated in 2006 and managed by Mr. K Satyanarayana, Naga Sindhu manufactures cotton yarn. Its spinning unit is in the Guntur district of Andhra Pradesh. OASIS COMMERCIAL: Ind-Ra Withdraws BB+ Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Oasis Commercial Private Limited's (OCPL) Long-Term Issuer Rating of 'IND BB+'. The Outlook was Stable. The instrument-wise rating actions are: -- INR450 mil. Fund-based working capital limits withdrawn with WD rating; -- INR50 mil. Non-fund-based working capital limits withdrawn with WD rating; and -- INR591.3 mil. Term loans due on September 2019 withdrawn WD rating. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, based on the receipt of no-objection certificates from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for OCPL. COMPANY PROFILE OCPL was incorporated in 2006 to manufacture and sell liquor and allied products. In 2013, the company acquired an ENA manufacturing facility of capacity 120,000 litres/day along with a 9MW biomass power co-generation plant from A.B. Grain Spirits Pvt. Limited. The unit is located in Ambala, Haryana. ORIENT COLOR: CRISIL Reaffirms 'B' Rating on INR1.87MM LT Loan -------------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities of Orient Color Art Printers Private Limited at 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.15 CRISIL A4 (Reaffirmed) Cash Credit 1.26 CRISIL B/Stable (Reaffirmed) Foreign Bill Discounting 1.75 CRISIL A4 (Reaffirmed) Packing Credit 0.75 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 1.87 CRISIL B/Stable (Reaffirmed) Term Loan 1.50 CRISIL B/Stable (Reaffirmed) The ratings reflect a modest scale in the intensely competitive printing industry and below-average financial risk profile, with weak capital structure. These weaknesses are partially offset by the extensive experience of promoters in the printing business. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations Revenue is estimated at INR17.7 crore during fiscal 2017, underpinning its modest scale in the printing industry. The domestic printing industry is highly fragmented by unorganised players, offering low-quality printing solutions at lower cost. As a result, players such as OCAPPL face competition. * Below-average financial risk profile Networth was small and gearing high estimated at INR0.9 crore and 4.09 times, respectively, for fiscal 2017. Debt protection metrics were modest: net cash accrual to total debt and interest coverage ratios were 18% and 1.89 times, respectively, for fiscal 2017, owing to limited profitability and high dependence on bank debt. Strengths * Promoters' extensive experience Benefits from the experience of over two decades of promoters, Mr NV Muralitharan and Mr NV Giritharan, has resulted in established relations and repeated orders with key customers. Outlook: Stable CRISIL believes OCAPPL will continue to benefit over the medium term from its established track record in the printing industry. The outlook may be revised to 'Positive' if increase in revenue and stable profitability result in a sustainable improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' if lower revenue and profitability, or any large capital expenditure or stretch in working capital cycle leads to deterioration in the financial risk profile. Incorporated in 2011 as a private limited company, OCAPPL prints diaries, calendars, notebooks, and labels. Operations are managed by Mr NV Muralitharan. For fiscal 2017, on a provisional basis, profit after tax was INR0.1 crore on net revenue of INR17.7 crore, against INR0.1 crore and INR17 crore, respectively, for fiscal 2016. PARSVNATH DEVELOPERS: CRISIL Cuts Rating on INR141.04MM Loan to D ----------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Parsvnath Developers Limited (PDL) to 'CRISIL D' from 'CRISIL C'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 88.96 CRISIL D (Downgraded from 'CRISIL C') Long Term Loan 20.00 CRISIL D (Downgraded from 'CRISIL C') Proposed Long Term 141.04 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL C') The downgrade reflects delays in servicing the rated debt on account of stretched liquidity. PDL is also exposed to cyclicality inherent in the real estate sector. However, it benefits from the extensive experience of its promoters in the real estate industry. Analytical Approach For arriving at the rating, CRISIL has combined the business and financial risk profiles of PDL, and its subsidiaries and associates. This is because all these companies, collectively referred to as PDL, are managed by the same promoters, and have fungible cash flows. Key Rating Drivers & Detailed Description Weakness *Delays in debt servicing PDL has delayed in servicing its debt obligations following lower-than-expected cash flows from its projects. It also derives benefit from its available land bank; in the past, the company had monetised the same for meeting debt obligations. Ability to successfully monetise surplus land parcels will remain a key rating sensitivity factor. *Susceptibility to cyclical demand inherent in the real estate sector in India The real estate sector in India is cyclical and volatile, resulting in fluctuations in cash flows because of volatility in realisations. In contrast, cash flows, related to project completion and servicing debt, are relatively fixed, and could lead to substantial cash flow mismatches. PDL remains exposed to risks and cyclical demand inherent to the real estate sector. Strengths * Promoters' extensive experience in the real estate sector The promoters, given their healthy track record of over two decades in the real estate sector, have developed a well- diversified portfolio, which includes residential apartments and townships, commercial and retail space, special economic zones (SEZs), information technology (IT) parks, and hotels. It is also engaged in the construction contracting business. Incorporated in 1990, PDL develops real estate projects and has a well-diversified portfolio of residential apartments, integrated townships, commercial and retail projects, SEZs, IT parks, and hotels. It is also engaged in the construction contracting business. While the company has delivered about 2.8 crore square feet (sq ft) through its 65 completed projects, the ongoing project portfolio comprises around 40 projects spread over about 5.5 crore sq ft. It has a pan-India presence, with a major presence in Delhi and the National Capital Region. PDL's net loss was at INR34.83 crore on net sales of INR249.42 crore for fiscal 2017, on a provisional basis, as against a net profit of INR4.72 crore on net sales of INR309.7 crore for fiscal 2016. PETRON ENGINEERING: Ind-Ra Migrates BB- Rating to Not Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Petron Engineering Construction Limited's (PECL) Long-Term Issuer Rating to 'IND BB-' from 'IND BBB-'. The Outlook is Negative. The rating action takes into account PECL's stressed liquidity due to delays in receipt of remittances against contracts executed. The ratings have been migrated to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the ratings are based on the best available information. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)'/Negative on the agency's website. The instrument- wise rating actions are: -- INR121.6 mil. Term loan downgraded and migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING)/Negative rating; -- INR845 mil. Fund-based limits downgraded and migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING)/Negative rating; -- INR4,120 mil. Non-fund-based limits downgraded and migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating; -- INR200 mil. Proposed term loan downgraded and migrated to non-cooperating category with Provisional IND BB-(ISSUER NOT COOPERATING)/Negative rating; -- INR350 mil. Proposed fund-based limits downgraded and migrated to non-cooperating category with Provisional IND BB-(ISSUER NOT COOPERATING)/Negative rating; and -- INR650 mil. Proposed non-fund-based limits downgraded and migrated to non-cooperating category with Provisional IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information KEY RATING DRIVERS The downgrade reflects PECL's interest coverage (EBITDA/interest expenses) falling to 0.2x in FY17 (FY16: 1.2x) due to a significant decline in EBITDA margin to 1.0% during the period (8.7%), breaching Ind-Ra's negative rating sensitivity on sustained basis (interest coverage was below 1.0x over 2QFY17- 4QFY17). The Negative Outlook reflects a sustained fall in EBITDA margin and the agency's expectations that the margin is unlikely to improve beyond the FY16 level, as it operates in an intensely competitive oil and gas sector. RATING SENSITIVITIES Negative: Continued stressed EBITDA margin and liquidity would lead to a further downgrade. Positive: An improvement in liquidity and financial profile on a sustained basis could lead to the Outlook being revised to Stable. COMPANY PROFILE Incorporated in 1976, PECL undertakes turnkey engineering, procurement and construction as well as composite construction solutions for sectors such as power, oil and gas, petrochemical and cement. Its revenue was down 18.3% yoy to INR3,446 million in FY17. PRASHANTH POULTRY: CRISIL Reaffirms 'D' Rating on INR10.77MM Loan ----------------------------------------------------------------- CRISIL has been consistently following up with Prashanth Poultry Private Limited (PPPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.45 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 10.77 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Cash 3.00 CRISIL D (Issuer Not Credit Limit Cooperating; Rating Reaffirmed) Proposed Long Term 0.78 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 Prashanth Poultry 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 Prashanth Poultry 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'. PPPL, set up in 2005, and promoted by Mr. V Bhaskar Rao and his family is in the poultry business; it produces eggs at its unit in Mahbubnagar, Andhra Pradesh. PRIME TECHNOPLAST: CRISIL Reaffirms 'D' Rating on INR50MM Loan -------------------------------------------------------------- CRISIL has been consistently following up with Prime Technoplast Private Limited (PTPL) 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 50 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 Prime Technoplast 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 Prime Technoplast 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 2007, PTPL manufactures PP bags. Mr. Mehtab Hussain manages the daily operations. The manufacturing facility is in Howrah, West Bengal. PUNJAB METAL: Ind-Ra Puts 'BB-' LT Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Punjab Metal Works Private Limited (PMWPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR30 mil. Fund-based limits assigned with IND BB-/Stable/IND A4+ rating; and -- INR50 mil. Non-fund-based limits with IND A4+ rating. KEY RATING DRIVERS Ind-Ra has taken a consolidated view of PMWPL, A K Lumbers Limited ('IND BB-'/Stable) and Jindal Wood Products Private Limited ('IND BB-'/Stable) while arriving at the ratings, given the strong legal and operational linkages among them. All the companies operate in the similar line of business and have a common management. The ratings reflect the group's moderate scale of operations, volatile EBITDA margin and moderate-to-weak credit metrics owing to the slowdown in the end-user industry and fluctuations in raw material prices. As per FY17 provisional financials, consolidated revenue was INR1,061.05 million (FY16: INR955.15 million), EBITDA margin was 4.15% (4.50%), interest coverage (operating EBITDA/gross interest expenses) was 1.38x (1.27x) and total leverage (total adjusted debt/operating EBITDA) was 10.40x (10.12x). The ratings also factor in the company's tight liquidity position with around 97% average utilisation of fund-based limits during the 12 months ended June 2017. However, the ratings are supported by promoter's experience of more than two decades in the timber business. RATING SENSITIVITIES Negative: Deterioration in the credit metrics on a sustained basis will be negative for the ratings. Positive: A significant improvement in the top line leading to an improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE PMWPL, incorporated in 1975, was acquired by promoters of Jindal Wood Products. The company processes plywood and veneer, and trades timber logs, mainly hardwood. On a standalone basis, revenue was INR218.50 million in FY17P (FY16: INR182.48 million), EBITDA margin was 5.22% (4.14%), interest coverage was 2.07x (1.59x) and net leverage (total adjusted net debt/operating EBITDAR) was 7.27x (10.45x). R.R. DWELLINGS: CRISIL Reaffirms 'D' Rating on INR18MM Term Loan ---------------------------------------------------------------- CRISIL has been consistently following up with R.R. Dwellings Private Limited (RRDPL) for obtaining information through letters and emails dated April 13, 2017 and May 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 18 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 R.R. Dwellings 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 R.R. Dwellings 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'. RRDPL, incorporated in 2008, is part of the Lucknow-based RR group of companies. It is executing a residential project, Celebrity Gardens, in Sushant Golf City at Sultanpur Road, in Lucknow. SAGAR AUTO: CRISIL Reaffirms B+ Rating on INR2MM Cash Loan ---------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Sagar Auto Parts Pvt Ltd (SAPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B+/Stable (Reaffirmed) Proposed Letter of Credit & Bank Guarantee 4.08 CRISIL A4 (Reaffirmed) Proposed Term Loan 2 CRISIL B+/Stable (Reaffirmed) Rupee Term Loan 1.92 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect the company's modest scale of operations, customer concentration in revenue profile, and below- average financial risk profile because of leveraged capital structure. These weaknesses are partially offset by the extensive experience of its promoter in manufacturing automotive (auto) components and established relationship with Greaves Cotton Ltd. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: With an operating income of INR13.4 crore during fiscal 2017, scale remains modest due to intense competition in the automotive (auto) components manufacturing industry. * Customer concentration in revenue profile: Any downturn in GCL's operations, which accounts for 95% of SAPPL's revenue, will affect overall business risk profile. * Below-average financial risk profile: Gearing and total outside liabilities to tangible networth ratio are estimated to be leveraged at 2.74 times and 3.92 times, respectively, as on March 31, 2017, due to moderate debt contracted to fund capital expenditure (capex), and small networth of INR2.1 crore. Though financial risk profile is expected to improve gradually with term loan repayment, it will remain below average over the medium term. Strengths * Extensive experience of promoters and established relationship with GCL: Presence of more than two decades in the auto components segment has enabled the promoter to establish strong relationship with major customer, GCL. Outlook: Stable CRISIL believes SAPPL will continue to benefit over the medium term from the extensive experience of its promoter and established association with GCL. The outlook may be revised to 'Positive' if more-than-expected revenue or profitability leads to sizeable cash accrual. The outlook may be revised to 'Negative' if low cash accrual due to weak sales or profitability or larger-than-expected debt-funded capex further weakens financial risk profile, especially liquidity. Incorporated in 1995 and promoted by Mr Bharat Pandey, SAPPL manufactures auto components used in silencers and engines, mainly for three-wheelers. Facility is in Shirur near Pune. Provisional profit after tax is INR0.33 crore on net sales of INR13.42 crore for fiscal 2017; net loss was INR0.22 crore on net sales of INR12.62 crore for fiscal 2016. SAGAR COTTON: CRISIL Reaffirms B+ Rating on INR9MM Cash Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank facility of Sagar Cotton Industries (SCI). The rating reflects a modest scale of operations in the highly competitive cotton industry, large working capital requirement, and a below- average financial risk profile because of high gearing and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of the partners and proximity to the cotton-growing belt in Gujarat. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL B+/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in a highly fragmented industry: The firm's limited capacity and fragmentation in the textile industry have led to modest revenue of INR37.15 crore in fiscal 2017 (Rs 25 crore in fiscal 2016). This also restricts benefits of economies of scale and limits pricing flexibility, constraining profitability * Working capital-intensive operations: Gross current asses were high at 100-160 days, on account of debtors of 22-44 days and inventory of 66-143 days, in the three fiscals ended March 31, 2017. Working capital requirement is likely to remain high over the medium term. * Below-average financial risk profile: As on March 31, 2017, the networth was small at INR2.72 crore and gearing high at 2.8 times. With continued large working capital debt, gearing is expected to remain high over the medium term. The debt protection metrics were weak, with interest coverage ratio of 1.53 times for fiscal 2017. Strength * Extensive industry experience of the partners: The partners have an experience of more than 15 years in the cotton ginning industry. This has enabled them to understand the dynamics of the local market, and establish relationships with customers and suppliers. Outlook: Stable CRISIL believes SCI will continue to benefit from the extensive industry experience of its partners. The outlook may be revised to 'Positive' if sustained revenue growth, along with improvement in profitability and the working capital cycle, leads to a better capital structure. The outlook may be revised to 'Negative' if a considerable decline in revenue and profitability, deterioration in working capital management, or any large, debt-funded capital expenditure weakens the financial risk profile. Set up in 1998, SCI is a partnership firm promoted by the Gangani family. The firm undertakes cotton ginning and pressing operations at its facility at Babra in Amreli, Gujarat. In fiscal 2017, profit after tax (PAT) was INR0.13 crore on total sales of INR37.15 crore, as against PAT of INR0.12 crore on total sales of INR24.98 crore in fiscal 2016. SARA CREATION: Ind-Ra Moves BB- Issuer Rating to Not Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sara Creation Inc.'s (SCI) 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: -- INR50 mil. Term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR60 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(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 SCI is a garments manufacturer and exporter with its registered office and factory in Noida. The company procures raw material from domestic market and exports 100% of its products to the US, Germany, the UK and Belgium. SARTHAV INFRASTRUCTURE: CRISIL Reaffirms D Rating on INR20MM Loan ----------------------------------------------------------------- CRISIL has been consistently following up with Sarthav Infrastructure Private Limited (SIPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 20 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 Sarthav 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 Sarthav 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 D'. SIPL, promoted by the Sutaria and Shah families and incorporated in 2007, develops real estate in Ahmedabad. It has three ongoing projects. SHANTI NIKETAN: CRISIL Reaffirms D Rating on INR6.53MM Term Loan ---------------------------------------------------------------- CRISIL has been consistently following up with Shanti Niketan Trust (SNT) for obtaining information through letters and emails dated April 21, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft .65 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 6.53 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 Shanti Niketan Trust. 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 Shanti Niketan Trust 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'. SNT was set up in 2008 in Meerut and offers courses in engineering, MBA, Post Graduate Diploma in Management (PGDM), and polytechnic. The trust has sanctioned capacity of 1000 students (360 in bachelor of technology, 120 in PGDM, 120 in MBA, 300 in polytechnic, and 100 in bachelor of education) and is affiliated to Mahamaya Technical University. SHREE RAJMOTI: CRISIL Reaffirms 'D' Rating on INR60MM Cash Loan --------------------------------------------------------------- CRISIL has been consistently following up with Shree Rajmoti Industries (SRI) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Pledge Loan 25 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 Shree Rajmoti Industries. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Shree Rajmoti Industries is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. SRI, set up as a partnership firm in 1962, manufactures and trades in double-filtered and refined groundnut oil and other edible oils. The firm is promoted by Mr. Sameer Shah, Mr. Shyam Shah, and Mr. Bhavdeep Vajubhai Vala. SHRIVISION TOWERS: CRISIL Cuts Rating on INR50MM LT Loan to B ------------------------------------------------------------- CRISIL has been consistently following up with Shrivision Towers Private Limited (STPL) for obtaining information through letters and emails dated Jan. 25, 2017, and Feb. 14, 2017, among others; apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 50 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL BB+(SO)/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of STPL. This restricts CRISIL's ability to take a forward looking view on the firm's credit quality. CRISIL believes information available for STPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL B rating category or lower.' Therefore, on account of inadequate information and lack of management co-operation, CRISIL is downgrading the rating to 'CRISIL B/Stable' from 'CRISIL BB+(SO)/Stable'. Analytical Approach In the absence of information regarding continuation of the structure with escrow and waterfall mechanism for debt repayment, CRISIL has discontinued its structured obligation (SO) rating symbol for the rating on facilities of STPL. Incorporated in 2008 and based in Bengaluru, STPL is a special- purpose vehicle set up to undertake development of a residential project, Shriram Greenfield, on Old Madras Road, Bengaluru. SILICON CITY: May Face Insolvency Move -------------------------------------- The Times of India reports that after Jaypee Infratech, the process of corporate insolvency resolution under the insolvency and bankruptcy code is likely to be initiated against three Amrapali group companies -- Noida's Silicon City and Greater Noida-based Ultra Home Construction and Amrapali Infrastructure -- on the plea of Bank of Baroda. TOI relates that a bank official said the National Company Law Tribunal's principal bench had reserved its verdict on the issue and may pronounce it any day now. The report says the move will affect around 1,000 home buyers. A company source said Amrapali has prioritised delivery to Silicon City buyers. According to the report, the Amrapali official, who refused to be quoted, said in all the three companies, the bank had outstanding amounts of much more than INR1,00,000, the minimum cutoff for initiation of insolvency proceedings. The plea, he said, is therefore likely to be accepted despite the company managements opposing the move, the report says. In Silicon City, Bank of Baroda has an outstanding amount of INR56 crore in principal. Other lenders to the company are OBC and Bank of Maharashtra, the report discloses. Banks had given around INR300 crore in principal to the company which has returned INR305 crore so far and still owes INR156 crore. In addition, Silicon City owes the Noida Authority around INR550 crore. Besides this, JP Morgan also had also extended a secured loan of INR150 crore to the company. Sources said the first claim to receivables from the company will be that of the authority. According to TOI, Silicon City is constructing its housing project in Noida Sector 74-75. The company has given possession to 2,500 home buyers. Of the remaining 1,000 apartments, the company is likely to give possession to another 500 apartments by December 2017. The construction of the other 500 apartments is at an advanced stage, it is learnt. The project is running behind schedule by around three years. TOI relates that a company source said Silicon City has not given its consent for the invocation of the insolvency and bankruptcy code. Contending that the delays were caused mainly due to stoppage of work due to various court orders and farmers' agitations, a company source claimed that the entire project will be completed in the next one year, with internal cash flows such as receivables from buyers. It has also around 1.5 million square feet FSI to sell to meet other liabilities. SJP INFRACON: CRISIL Reaffirms 'D' Rating on INR25MM Term Loan --------------------------------------------------------------- CRISIL has been consistently following up with SJP Infracon Limited (SJP) for obtaining information through letters and emails dated April 13, 2017 and May 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 25 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 SJP Infracon 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 SJP Infracon 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'. Set up in 2010, SJP is a part of the SHRI group which has an established market position in the real estate sector in Agra and Mathura. The company is currently executing a residential real estate project in Greater Noida. The project is marketed under the Shri Radha Sky Gardens brand and is spread over an area of 80,000 square metres. The SHRI group was established in 1931 by the late Shri Shri Nath Prasad and his family members. The group has a track record of over 20 years in the real estate sector. SPRING MERCHANDISERS: CRISIL Reaffirms D Rating on INR6.5MM Loan ---------------------------------------------------------------- CRISIL has been consistently following up with Spring Merchandisers Private Limited (SMPL) for obtaining information through letters and emails dated April 18, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Inland/Import 6.5 CRISIL D (Issuer Not Letter of Credit Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Spring Merchandisers 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 Spring Merchandisers Private Limitedis 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'. SMPL, incorporated in 1995, manufactures brass, zinc, copper, and aluminium ingots and trades in non-ferrous scrap. The operations are managed by Mr. Ajay Garg and his sons, Mr. Gaurav Garg and Mr. Anirudh Garg. The company is based in Mumbai and has a manufacturing unit in Daman. SRI KALISWARI: Ind-Ra Moves BB+ Issuer Rating to Not Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sri Kaliswari Metal Powders Private Limited's bank loan ratings to the non- cooperating category. The issuer did not participate in the surveillance 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+(SO)(ISSUER NOT COOPERATING)' on the agency's website. The rating actions are: -- INR40.0 mil. Fund-based limits migrated to non-cooperating category with IND BB+(SO)(ISSUER NOT COOPERATING)/IND A4+(SO)(ISSUER NOT COOPERATING) rating; and -- INR155.6 mil. Non-fund-based limits migrated to non- cooperating category with IND BB+(SO)(ISSUER NOT COOPERATING)/IND A4+(SO)(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Dec. 22, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sri Kaliswari Metal Powders is part of the Sri Kaliswari Group which manufactures and markets fireworks under the 'Cock' brand. The company manufactures and exports aluminium powder and aluminium paste. SRI NANGALI: CRISIL Reaffirms 'D' Rating on INR22MM Cash Loan ------------------------------------------------------------- CRISIL has been consistently following up with Sri Nangali Agro Tech Private Limited (SNA) for obtaining information through letters and emails dated April 25, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 22 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 Sri Nangali Agro Tech 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 Sri Nangali Agro Tech 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 1996 and promoted by Mr. Vijay Kumar, Mr. Satish Kumar, and Mr. Anil Kumar, SNA manufactures wheatbased products such as flour, maida, and sooji. Unit in Gurdaspur has processing capacity of 120 tonne per day for each product. SRI NANGALI RICE: CRISIL Reaffirms 'D' Rating on INR54MM Loan ------------------------------------------------------------- CRISIL has been consistently following up with Sri Nangali Rice Mills Private Limited (SNRL) for obtaining information through letters and emails dated April 25, 2017 and May 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 54 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 4 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 Sri Nangali 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 Sri Nangali 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 D'. SNRL was established in 2004 by Mr. Anil Aggarwal and his brothers, Mr. Vijay Aggarwal and Mr. Satish Aggarwal, in Gurdaspur, Punjab. The company mills and markets rice, mainly basmati rice, under its Sri Nangali, Raj Mahal, White, and Swami brands. It is managed by the three Aggarwal brothers, and their nephew, Mr. Manoj Aggarwal. STAR CITY: CRISIL Reaffirms B+ Rating on INR9.2MM LT Loan --------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the bank facilities of Star City Multispeciality Hospital Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 9.2 CRISIL B+/Stable (Reaffirmed) Term Loan 5.8 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the firm's modest scale of operations and below average financial risk profile because of high gearing and modest net worth, though supported by adequate debt protection metrics. These weaknesses are partially offset by extensive experience of promoters in the healthcare industry, and established name in Kalyan, Maharashtra. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile: The hospitals financial risk profile is below average with modest net worth of INR3 cr and gearing of 2.2 times as on March 31, 2017. SCMHPL is expected to have Net Cash Accruals to Total Debt (NCATD) and interest coverage ratios of over 0.18 and 2.35 times, respectively, for 2016-17. * Modest scale of operations The hospital was launched in December 2012 and is estimated to report revenue of around INR9.25 cr. in 2016-17. The scale of operations still remains modest, with current capacity of only around 50 beds. The scale of operations may improve, but remain modest over the medium term, thereby impacting the business risk profile. Strength * Extensive experience of promoters in the healthcare industry and established market position: The promoters are specialists in different fields, practicing medicine in Mumbai and adjacent areas since 1995. The panel further includes highly qualified and specialist doctors, each having over 15 years of experience. Backed by established reputation and quality of resident doctors, the hospital operates at 70 percent occupancy levels and is likely to report steady growth in revenue over the medium term. Outlook: Stable CRISIL believes SCMHPL may continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is sustained improvement in the company's scale of operations and profitability, or if the promoters infuse significant equity, thus strengthening capital structure. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected accrual, or aggressive debt-funded expansion, or deterioration in working capital management, leading to pressure on liquidity. SCMHPL, incorporated in 2010, runs a 50-bed multi-speciality hospital in Kalyan. The company is promoted by Dr. Chandrakant D Shivsharan (laparoscopic surgeon), Dr. Pravin P Bhujbal, Dr. Pradeep B Shelar, Dr. Bhavesh J Chauhan, Dr. Umesh V Kapuskar, Dr. Chandan R Singh, and Dr. Rajesh Pastaria. For fiscal 2017, SCMHPL's net loss was INR0.02 crore on net sales of INR9.22 crore, against a PAT of INR0.86 crore on net sales of INR9.33 crore for fiscal 2016. SVASCA INDUSTRIES: Ind-Ra Moves B+ Rating to Not Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Svasca Industries (India) Limited's (SIIL) 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 the rating. The rating will now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR130 mil. Fund-based working capital limit migrated to non- cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; -- INR160 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 11, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SIIL was established in 1997 and manufactures power and distribution transformers and servo voltage stabilisers at its facilities in Rudrapur (Uttarakhand) and Faridabad (Haryana). T. ASOKAN: CRISIL Lowers Rating on INR5MM Cash Loan to 'B' ---------------------------------------------------------- CRISIL has been consistently following up with T. ASOKAN (TA) for obtaining information through letters and emails dated April 6, 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 3 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 5 CRISIL B/Stable (Issuer Not Cooperating; Downgraded from 'CRISIL B+/Stable') Proposed Working 4 CRISIL B/Stable (Issuer Not Capital Facility Cooperating; Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of T. ASOKAN. 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 T. ASOKAN is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' category or lower. Based on the last available information, CRISIL has downgraded the long term rating to 'CRISIL B/Stable' and reaffirmed the short term rating at 'CRISIL A4'. TA is a Kozhikode-based civil contractor. Its operations are managed by its proprietor, Mr. T Asokan. UMIYA MATA: CRISIL Assigns 'B' Rating to INR4.25MM Term Loan ------------------------------------------------------------ CRISIL has assigned 'CRISIL B/Stable/CRISIL A4' ratings to bank facilities of Umiya Mata Kadva Patidar Education & Samaj Seva Trust (UMK). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 4.25 CRISIL B/Stable Letter Of Guarantee 5 CRISIL A4 Overdraft 1.75 CRISIL B/Stable The ratings reflect weak financial risk profile marked by low networth and modest Return on capital employed (RoCE). These rating weaknesses are offset by extensive experience in the education sector and business risk profile supported by increasing demand for graduation and post-graduation in India and diverse range of courses offered by trust. Key Rating Drivers & Detailed Description Strengths * Weak Financial Risk Profile: Financial Risk profile remains weak as indicated in low networth which limits the financial flexibility of the trust. * Modest Return on Capital Employed: Return on Capital Employed remains low due to moderate occupancy in the colleges which results in lower asset turnover ratio. Weakness * Extensive experience of the promoters in the education sector: Promoters have over a decade of experience in the education sector which results in understanding of business cyclicality in the industry. * Business risk profile supported by increasing demand for graduation and post-graduation in India and diverse range of courses offered by trust: Business Risk profile is supported by diverse range of courses offered by the trust like engineering, Management of Business Administration, Bachelor of Science etc. Moreover comfort could also be drawn from increasing demand for graduation and post-graduation courses in India. Outlook: Stable CRISIL believes that UMK Trust will maintain its business and financial risk profiles on the back of the high demand for, and shortage of, quality higher educational institutions in India. The outlook may be revised to 'Positive' if the trust successfully demonstrates a steady intake of students, leading to stable net cash accruals over the near to medium term. Conversely, the outlook may be revised to 'Negative' if PRPP Trust's capital structure deteriorates because of decline in occupancy levels for its various courses, leading to reduced cash accruals, or the promoters' inability to bring in additional funds; the outlook may also be revised to 'Negative' if the trust undertakes larger-than-expected debt-funded capex plans for the medium term. UMK Trust is an educational trust engaged in conducting school, undergraduate and post graduate courses in emerging areas. The Trust operates in Ahmedabad. Management have over a decade of experience in running educational institutions. Profit after tax for fiscal 2016 is INR0.06 crore on net sales of INR14.66 crore as against net loss of INR0.76 crore on net sales of INR16.21 Cr for fiscal 2015. ================= I N D O N E S I A ================= LIPPO KARAWACI: S&P Places 'B+' CCR on CreditWatch Negative ----------------------------------------------------------- S&P Global Ratings placed its 'B+' long-term corporate credit rating on PT Lippo Karawaci Tbk. (Lippo), the 'B+' long-term issue ratings on the company's senior unsecured notes, and the 'axBB' ASEAN regional scale rating on CreditWatch with negative implications. S&P said, "We placed the ratings on CreditWatch because we believe Lippo's interest servicing capacity and financial flexibility could reduce due to subdued operating conditions, potentially weaker operating margins, and the outcome of a proposed rights issue at its healthcare subsidiary PT Siloam International Hospitals Tbk. (Siloam). "We had expected a bottoming of property sales for rated Indonesian real estate developers in 2016, arising from the uncertainty associated with a tax amnesty. Our property sales forecasts had assumed a gradual improvement in market sentiment and sales in 2017 and 2018 from the gradual resolution of the tax amnesty and new project launches by developers." So far, however, rated and listed developers have generally announced few project launches and consumer sentiment toward large-ticket item purchases such as real estate remains muted. Realized marketing sales from both new projects launches and existing inventory for the first six months of the year have therefore been slow and lagged their full year projections. Most developers have resorted to land sales to mitigate some shortfalls in sales targets. Amid weaker marketing sales of existing projects for the six months ended June 30, 2017, Lippo launched lower priced apartments at its Meikarta development in Cikarang. This first launch of lower priced apartments has met with relative success with Lippo employees. S&P said, "Nevertheless, we note that the lower selling prices of these apartments will translate into lower consolidated profit margins and EBITDA through 2018. Along with subdued property sales since 2015, we believe Lippo's reported EBITDA in 2018 could be substantially lower than we earlier anticipated. The company's EBITDA interest coverage could therefore fail to be comfortably above the 1.5x level we would consider for the rating to stay at 'B+'." Lippo also experienced delays in the sale of some of its malls to its listed REITs in Singapore. For example, the company originally expected its sale of a mall in Yogyakarta in mid-2016, but it gradually pushed the timeline to early 2017 and now to the end of 2017. The ability of Lippo's credit metrics to stay within out tolerance level for the 'B+' level also hinge on those substantial asset sales. S&P said, "In our base case, we expect Lippo to sell the Yogyakarta mall in early 2018 and part of the St. Moritz complex, in Jakarta, in 2019. But we recognize that the sales will also depend on the ability of the Singapore REITs, especially Lippo Malls Indonesia Retail Trust (LMIRT), to absorb more assets without a corresponding equity issuance, in our opinion. Such activities take time and may delay completion of the acquisitions." In July 2017, Siloam announced a proposed rights issue. The company intends to use the proceeds from the rights issue to expand its operations, via a combination of construction of new sites and acquisitions of existing hospitals. At present, it has 31 hospitals in 16 provinces and plans to increase its portfolio to 50 hospitals in 34 provinces by 2019. It remains unclear at this stage how much Siloam is likely to raise and whether Lippo will keep its stake in Siloam as it is or reduce it after the rights issue. S&P said, "A further dilution in Lippo's stake in Siloam post the latter's right issue would be credit negative, in our opinion. While it may be cash flow neutral for Lippo, we have highlighted before that a dilution of Lippo's stake would effectively reduce the level of Lippo's assets and listed stakes that it could monetize to consolidate its balance sheet. A dilution, if it occurs, would also come after a previous reduction in Siloam's stake to about 62% from 70% in August 2016. This would reduce Lippo's financial flexibility amid slower operating conditions domestically in the real estate development segment. Finally, it would also further demonstrate the company's aggressive growth aspirations. The CreditWatch status indicates a one-in-two likelihood of a one-notch downgrade within the next three months. S&P will seek further clarity on the following: (1) The prospects for Lippo's marketing sales, especially at the Meikarta project; and (2) the ultimate ownership of Siloam post the company's rights issue. S&P said, "In considering these factors we will also take into account Lippo's willingness to protect its balance sheet and maintain sufficient financial flexibility while continuing its expansionary strategy at its healthcare operations. "We will also assess the implications of Lippo's strategic shift toward lower margin apartments in Meikarta and its impact on margin and profit generation through 2018. "We may lower the rating, most likely by one notch, if our projections indicate that the company's EBITDA interest coverage ratio will fail to stay comfortably above 1.5x on a sustained basis." This would most likely materialize if marketing sales remain slow through the end of 2017 or overall profit margins are indeed materially lower than those of past projects. A reduced ownership stake in Siloam with funds employed for expansion rather than reducing debt could also impact Lippo's future financial flexibility in times of strained cash flows as the limited debt headroom of its REITs constrains future acquisitions. A rating affirmation at 'B+' would be contingent upon (1) a substantial pickup in marketing sales, or increase asset sales allowing the company to generate improve absolute EBITDA such that its EBITDA interest coverage stays comfortably above 1.5x on a sustained basis; and (2) the company maintaining appropriate financial flexibility. =============== M A L A Y S I A =============== MONGOLIAN MINING: Shares Up as it Ends Five Years of Losses ----------------------------------------------------------- Eric Ng at South China Morning Post reports that shares in Mongolian Mining surged as much as 34 per cent on August 11 after it said it expects to report an interim profit for the first time in five years. The positive earnings forecast comes on the back of a successful debt restructuring and soaring sales volume and prices of its mainstay product, coking coal, the Post says. According to the report, the privately-controlled company, the largest producer of the steel smelting ingredient in the landlocked nation that heavily relies on China to buy its commodities, said it will post a net profit of between US$250 million and US$375 million for the six months. That compares to a loss of US$61.7 million in the same period last year, and interim losses ranging from US$25.2 million to US$79.2 million the previous four years. Its shares finally closed the day 14 per cent higher on August 11 at 28.5 cents, the report says. "Such profit is primarily attributable to improved coking coal market conditions [resulting in] increasing coal product tonnage sold and average selling price achieved," Mongolian Mining said in a filing to Hong Kong's bourse on August 10, the Post relays. "The successful implementation and completion of the debt restructuring have resulted in an extraordinary gain," it added. Mongolian Mining said in early June it has emerged from "Chapter 15" bankruptcy protection proceedings in the United States and the joint provisional liquidators have been discharged from their duties, the report notes. In March last year, the firm was close to defaulting on a US$93 million loan owed to ICBC and BNP Paribas, and another US$51.8 million owed to the European Bank for Reconstruction and Development and two Dutch and German lenders, the report recalls. About Mongolian Mining Mongolian Mining Corporation is a Cayman Islands-exempted company with limited liability that was incorporated on May 18, 2010. The shares of the Debtor's common stock are publicly traded and listed on the Stock Exchange of Hong Kong Limited. The Group owns and operates two open-pit coking coal mines -- Ukhaa Khudag and Baruun Naran -- both of which are located in the Southern Gobi province of Mongolia. These deposits are located approximately 250 km from the Sino-Mongolian border and approximately 600 km from Baotou, China, an important railway hub providing access from Mongolia to the largest steel-producing provinces in China, including Inner Mongolia, Hebei, Shandong and Jiangsu. The Group sells most of its coking coal into China pursuant to long-term agreements with iron and steel mills and coke and chemical plants. The Group had 1,474 employees as of March 15, 2017. The mining activities of Ukhaa Khudag and Baruun Naran are carried out by two of the Debtor's subsidiaries incorporated in Mongolia. However, mining activity at the Baruun Naran mine has been suspended to save costs since the fiscal year ending Dec. 31, 2014. ==================== S O U T H K O R E A ==================== KUMHO TIRE: Meeting Delayed as Doublestar Demands Discount ---------------------------------------------------------- Yonhap News Agency reports that creditors of Kumho Tire Co. on August 22 postponed their meeting after China's Qingdao Doublestar Co. demanded a cut in its bidding price for the South Korean tiremaker. Yonhap relates that the creditors, led by the Korea Development Bank (KDB), had been scheduled to hold the meeting earlier in the day to discuss Doublestar's demands. According to the report, Doublestar signed a deal with the creditors in March to buy a 42.01-percent stake in Kumho Tire for KRW955 billion (US$841.7 million). After months of a bitter dispute over the use of Kumho Tire's brand, the Chinese company submitted documents last week for approval from the South Korean government in what appeared to be a final step to complete the acquisition, Yonhap says. However, Qingdao Doublestar has recently demanded the creditors cut the price by 16 percent to KRW800 billion, adding a new twist to the Chinese firm's bid to acquire Kumho Tire. The report relates that an official at the KDB said the creditors' meeting was delayed because "more consultations with Doublestar are needed." The meeting could be held today, August 23, but it could be delayed again, the KDB official said. Under the terms of the March deal, Doublestar has the right to cancel the deal if Kumho Tire's operating profit falls more than 15 percent on year as of Sept. 23, when the contract ends, according to Yonhap. In the first six months of this year, Kumho Tire suffered an operating loss of KRW50.7 billion, compared to a profit of KRW55.8 billion for the same period last year, Yonhap discloses. According to Yonhap, industry sources said Doublestar demanded the creditors lower the price of Kumho Tire, instead of canceling the deal outright. If the creditors accept Qingdao Doublestar's demand, it would allow Park Sam-koo, the chairman of Kumho Asiana Group, which is the parent of Kumho Tire, to exercise his right to buy back the tiremaker. Also, the creditors need to renegotiate with Doublestar over the usage fee of the Kumho Tire brand. Still, observers said it remains unclear whether the creditors will accept the demands or not, adds Yonhap. Kumho Tire was placed under a creditor-led workout program in 2009 after its parent company was hit by a liquidity problem following its takeover of Daewoo Engineering and Construction Co. At that time, Kumho Asiana Group Chairman Park Sam-koo was given a priority option to buy back the tiremaker should the creditors of Kumho Tire decide to sell the company, according to Yonhap News Agency. The creditors signed a deal in April to sell their combined 42.01% stake in the tiremaker to Doublestar for KRW955 billion (US$831 million), added Yonhap. ================ S R I L A N K A ================ BIMPUTH FINANCE: Fitch Affirms 'BB(lka)' Nat'l Long-Term Rating --------------------------------------------------------------- Fitch Ratings Lanka has affirmed Bimputh Finance PLC's National Long-Term Rating at 'BB(lka)'. The Outlook is Stable. KEY RATING DRIVERS Bimputh's rating reflects its small franchise compared with higher-rated peers and high-risk appetite stemming from its microfinance-dominated loan portfolio, which Fitch sees as risky due to the segment's greater susceptibility to economic cycles. Fitch's assessment also captures likely pressure on Bimputh's capitalisation from high loan growth, which is forecast by management's guidance, and limited funding diversity due to a heavy reliance on borrowings. Fitch believes aggressive loan growth would pressure Bimputh's capitalisation in the absence of any meaningful capital infusions. The company's Fitch Core Capital ratio remained flat at 16.5% as at end-March 2017 and Fitch believes Bimputh would depend on its 94% owner, Daya Group, for capital infusions. Fitch expects microfinance to remain Bimputh's dominant product exposure, notwithstanding that this exposure declined to 63% of total lending in the financial year ending March 2017 (FY17), from 82% at FYE16, due to increased exposure to non-microfinance loans supported by corporate and personal loans. A challenging operating environment, together with prolonged drought and several floods, reduced loan growth to 39% during FY17, from 118% in FY16. Fitch expects Bimputh's assets quality to remain under pressure. The reported six-month non-performing loan (NPL) ratio increased to 3.0% at end-March 2017, from 0.8% at end-March 2016, due to microfinance defaults. However, the company maintains adequate provisioning levels for these NPLs. Fitch believes weaker net interest margins from its business- model shift to a lower share of microfinance and higher funding costs could weigh on Bimputh's profitability and increase its credit costs. Moody's expects Bimputh to continue relying on wholesale borrowings due to its weaker deposit franchise relative to peers. Deposits made up only 30% of its funding at end-March 2017 and are highly concentrated among the top-20 deposit holders. Bimputh is a small finance company accounting for 0.95% of licensed finance company and specialised leasing company sector assets at end-March 2017 (March 2016: 0.86%). RATING SENSITIVITIES Weaker capitalisation metrics may place downward pressure on the company's ratings. Heightened risk appetite, indicated through aggressive loan growth or greater unprovided NPLs that increase capital impairment risks, could also lead to a downgrade of Bimputh's ratings. An upgrade is contingent on an improved franchise while sustaining credit metrics - in particular, capitalisation - similar to higher-rated peers, alongside a moderation of risk appetite. ********* 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. 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. 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