/raid1/www/Hosts/bankrupt/TCRAP_Public/170913.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, September 13, 2017, Vol. 20, No. 182
Headlines
A U S T R A L I A
HESLOP CONTRACT: Second Creditors' Meeting Set for Sept. 19
KALNOSA PTY: Former Director Disqualified From Managing Companies
LOCH 'N' QUAY: First Creditors' Meeting Set for Sept. 21
MJC FIRE: First Creditors' Meeting Set for Sept. 19
PROMOLOUNGE PTY: ASIC Winds Up 11 Abandoned Companies
SIBEDE PTY: Second Creditors' Meeting Set for Sept. 21
TEN NETWORK: KordaMentha 'Poisoned' Employees, Gordon Says
TEN NETWORK: 21st Century Fox Joins Battle to Block CBS Takeover
UMINA ELECTRICAL: Second Creditors' Meeting Set for Sept. 20
C H I N A
CHINA LONGYI GROUP: Recurring Losses Raise Going Concern Doubt
CHINA SENIOR LIVING: WWC P.C. Raises Going Concern Doubt
YULONG ECO-MATERIALS: KSP Group Inc. Casts Going Concern Doubt
I N D I A
ARYA SHIP: Ind-Ra Migrates 'D' Issuer Rating to Not Cooperating
ATLANTIC FABRICS: CRISIL Assigns 'B' Rating to INR2MM LT Loan
ATLAS CYCLE: ICRA Lowers Rating on INR48cr LT Loan to 'D'
BVL EXPORTS: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
CASABLANCA MULTI: Ind-Ra Migrates B- Rating to Not Cooperating
COASTAL ENERGY: ICRA Moves 'D' Rating to Not Cooperating Category
CREATORS CONSTRUCTIONS: Ind-Ra Moves B Rating to Not Cooperating
DODHIA SYNTHETICS: CRISIL Lowers Rating on INR42.46MM Loan to B
ECKO CABLES: CRISIL Reaffirms B- Rating on INR5MM Cash Loan
ESSEM JUTE: CRISIL Reaffirms D Rating on INR5.5MM Cash Loan
FLORIDA ELECTRICAL: ICRA Lowers Rating on INR5.5cr Loan to 'D'
FRANK LIFECARE: ICRA Moves B+ Rating to Not Cooperating Category
G.R WEAVERS: ICRA Moves 'B+' Rating to Not Cooperating Category
GEM BATTERIES: ICRA Lowers Rating on INR18cr Loan to 'D'
GEO SEA: Ind-Ra Migrates BB+ Issuer Rating to Not Cooperating
GOEL EXIM: ICRA Moves 'D' Rating to Not Cooperating Category
GOYAL GLASSWARE: CRISIL Cuts Rating on INR18MM Cash Loan to 'B'
GHANSHYAM DALL: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
GHANSHYAM PULSES: Ind-Ra Migrates B+ Rating to Not Cooperating
GHANSHYAM UDHYOG: Ind-Ra Moves B+ Rating to Not Cooperating
GINNI HOLDINGS: ICRA Moves 'D' Rating to Not Cooperating Category
GTN INDUSTRIES: ICRA Reaffirms 'B' Rating on INR92.49cr Loan
JAGANNATH POLYMERS: CRISIL Reaffirms 'B' Rating on INR5.6MM Loan
JAI LAXMI: ICRA Assigns 'B' Rating to INR6cr Cash Loan
JAYPEE INFRATECH: High Court Order Revives Hope Among Homebuyers
JONSON RUBBER: Ind-Ra Assigns BB Issuer Rating, Outlook Stable
KRISHNA CONSTRUCTIONS: ICRA Assigns B+ Rating to INR15cr Loan
LAXAI LIFE: Ind-Ra Upgrades Issuer Rating to BB-, Outlook Stable
MALAR SOLVENT: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
MANPURIA AGRO: Ind-Ra Migrates D Issuer Rating to Not Cooperating
NAGESHWARI CERAMIC: ICRA Reaffirms B+ Rating on INR4.70cr Loan
NALARI FERRO: ICRA Moves B+ Rating to Not Cooperating Category
OMEXO TILES: ICRA Reaffirms B+ Rating on INR4.05cr Term Loan
PAEDIA HEALTH: ICRA Withdraws B- Rating on INR11.95cr Loan
PARTH COLD: CRISIL Reaffirms 'B' Rating on INR4.75MM Term Loan
PBN CONSTRUCTIONS: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan
PSK DEVELOPERS: Ind-Ra Moves B+ Issuer Rating to Not Cooperating
RADIANT ENERGY: ICRA Assigns B Rating to INR6.0cr Cash Loan
RAJAPUR MINERALS: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
SAMBANDAM SIVA: CRISIL Reaffirms B+ Rating on INR9.8MM Cash Loan
SHIV SHAKTI: Ind-Ra Migrates BB+ Issuer Rating to Not Cooperating
SHREE RAJ: ICRA Moves 'D' Rating to Not Cooperating Category
SHRI SHANTI: Ind-Ra Migrates BB- Issuer Rating to Not Cooperating
SHRISTI COTSPINN: Ind-Ra Moves BB Rating to Not Cooperating
SILVER STAR: Ind-Ra Migrates B Issuer Rating to Not Cooperating
SPICA PROJECTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
SREEALANKAR GOLD: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
SRI AGARWAL: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
STERLING HABITATS: CRISIL Cuts Rating on INR25MM NCD to 'B(SO)'
SUL STEEL: CRISIL Lowers Rating on INR23MM Cash Loan to 'B'
TECHNOCAST FOUNDRY: Ind-Ra Migrates BB- Rating to Not Cooperating
TRIJAL ENTERPRISE: Ind-Ra Assigns 'BB'/Stable Issuer Rating
UNITY FABTEXT: CRISIL Lowers Rating on INR6.0MM Term Loan to 'D'
USHDEV INTERNATIONAL: Ind-Ra Affirms 'D' Long-Term Issuer Rating
VASUPUJYA FILAMENTS: CRISIL Lowers Rating on INR13.90M Loan to B
VIRENDRA KUMAR: ICRA Moves B+ Rating to Not Cooperating Category
M A C A U
WYNN MACAU: S&P Rates New $1.35BB Senior Unsecured Notes 'B'
S O U T H K O R E A
HANJIN INTERNATIONAL: S&P Assigns 'B-' CCR, Outlook Stable
KUMHO TIRE: Doublestar Agrees to Cancel Deal to Buy Tiremaker
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A U S T R A L I A
=================
HESLOP CONTRACT: Second Creditors' Meeting Set for Sept. 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Heslop
Contract Casters Pty Ltd has been set for Sept. 19, 2017, at
11:00 a.m., at Level 7, 616 St Kilda Road, in Melbourne,
Victoria.
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 Sept. 18, 2017, at 5:00 p.m.
Gideon Isaac Rathner and Matthew Brian Sweeny of Lowe Lippmann
were appointed as administrators of Heslop Contract on Aug. 16,
2017.
KALNOSA PTY: Former Director Disqualified From Managing Companies
-----------------------------------------------------------------
Steven Andrew Soong, of Concord New South Wales, has been banned
by the Australian Securities and Investments Commission from
managing corporations for three and a half years.
Mr. Soong's banning follows the appointment of liquidators to
three companies he managed, Kalnosa Pty Ltd, Linsari Pty Ltd and
Larsay Pty Ltd.
As a result of information shared between members of the Phoenix
Taskforce and in addition to information provided by the
liquidators of the failed companies, ASIC was concerned Mr Soong
failed to discharge his duties as a director by using tax debts
that were collected on labour hire costs to continue trading the
companies instead of remitting the debt to the Australian
Taxation Office.
The liquidators of Kalnosa Pty Ltd, Linsari Pty Ltd and Larsay
Pty Ltd identified a total of AUD1,203,386.72 in tax liabilities.
ASIC Commissioner, John Price said, 'The Phoenix Taskforce brings
Australia's key regulatory and enforcement agencies to share
information and identify directors who use companies to benefit
themselves at the expense of creditors. Failing to remit company
tax has detrimental consequences and adversely affects the
Australia's revenue base. It also gives directors an unfair
advantage when competing for work with businesses that play by
the rules'.
Mr. Soong's banning took effect from Sept. 7, 2017.
Section 206F of the Corporations Act allows ASIC to disqualify a
person from managing corporations for up to five years if, within
a seven-year period, the person was an officer of two or more
companies, and those companies were wound up and a liquidator
provides a report to ASIC about the company's inability to pay
its debts.
ASIC also maintains a public register of banned and disqualified
persons that provides information about people who have been:
disqualified from involvement in the management of a corporation;
disqualified from auditing self-managed superannuation funds
(SMSFs); or banned from practising in the financial services of
credit industry.
The reports prepared by the liquidators of Kalnosa Pty Ltd,
Linsari Pty Ltd and Larsay Pty Ltd were assisted by funding from
the Assetless Administration Fund.
The Phoenix Taskforce comprises 20 Federal, State and Territory
government agencies that provides a whole of government approach
whose sole agenda is to combat illegal phoenix activity. It uses
sophisticated data matching tools to identify, manage and monitor
suspected illegal phoenix activity.
The Phoenix Taskforce is continuing to investigate.
LOCH 'N' QUAY: First Creditors' Meeting Set for Sept. 21
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Loch 'N'
Quay Pty Ltd will be held at the offices of McLeod & Partners,
Hermes Building, Level 1, 215 Elizabeth Street, in Brisbane,
Queensland, on Sept. 21, 2017, at 10:00 a.m.
Jonathan P McLeod of McLeod & Partners was appointed as
administrator of Loch 'N' Quay Pty on Sept. 11, 2017.
MJC FIRE: First Creditors' Meeting Set for Sept. 19
---------------------------------------------------
A first meeting of the creditors in the proceedings of MJC Fire
Protection Pty Ltd will be held at the offices of Cor Cordis
Chartered Accountants, Level 29, 360 Collins Street, in
Melbourne, Victoria, on Sept. 19, 2017, at 11:00 a.m.
Sam Kaso & Daniel P Juratowitch of Cor Cordis were appointed as
administrators of MJC Fire on Sept. 7, 2017.
PROMOLOUNGE PTY: ASIC Winds Up 11 Abandoned Companies
-----------------------------------------------------
The Australian Securities and Investments Commission winds up 11
abandoned companies owing more than AUD650,000 in employee
entitlements.
During the period March to August 2017, ASIC assisted employees
gain access to the Fair Entitlements Guarantee scheme (FEG) by
exercising its wind-up powers and appointing liquidators to 11
abandoned companies.
The appointment of liquidators also facilitates a full and proper
investigation into the reasons why the companies failed and
allows recovery of any voidable or unreasonable director-related
transactions.
The 11 abandoned companies owe at least 29 employees in excess of
AUD650,000 in employee entitlements. The companies are:
Company Liquidator and Firm
------- --------------------
The Promolounge Pty Ltd Robert Woods of Deloitte
Refined Project Management Michael Carrafa of SV Partners
Pty Ltd
Duramic Pty Ltd Hugh Armenis of Bentleys Corporate
Commercial Monitors Shane Cremin of Rodgers Reidy
Australia Pty Ltd
Coes Company Australia Anne Meagher of SV Partners
Pty Ltd
Casselson Pty Ltd Ross Blakeley of FTI
EPS Worldwide Au Pty Ltd Tracy Knight of Bentleys Corporate
51Pay Pty Ltd Timothy Norman of Deloitte
Superior Exhaust Pty Ltd Gary Fettes of Rodgers Reidy
Bread Alone NQ Pty Ltd Derrick Vickers of PwC
TLT Constructions Pty Ltd Leigh Prior of Pitcher Partners
The FEG is a legislative safety net scheme funded by the
Commonwealth Government. It is designed to assist employees
recover owed unpaid employee entitlements because of their
employer company's liquidation or bankruptcy. In addition, the
Department of Employment operates the 'Fair Entitlements
Guarantee Recovery Programme'; a programme designed to strengthen
recovery activity of amounts advanced under the FEG Scheme. More
information about it is available here.
Some employees owed entitlements cannot access FEG because the
companies' directors are either unable to discharge their duties
or abandoned their insolvent companies without putting them into
liquidation. ASIC's appointment of liquidators facilitates access
to FEG for these employees. ASIC first used its powers in 2013
and to date has wound up 95 companies that owed at least 287
employees more than AUD5 million in entitlements.
SIBEDE PTY: Second Creditors' Meeting Set for Sept. 21
------------------------------------------------------
A second meeting of creditors in the proceedings of Sibede Pty
Ltd has been set for Sept. 21, 2017, at 10:00 a.m., at the
offices of SV Partners, SV House, 138 Mary Street, in Brisbane,
Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 20, 2017, at 4:00 p.m.
Anne Meagher of SV Partners was appointed as administrator of
Sibede Pty on Aug. 17, 2017.
TEN NETWORK: KordaMentha 'Poisoned' Employees, Gordon Says
----------------------------------------------------------
The Australian reports that lawyers for Bruce Gordon have accused
Ten Network administrators KordaMentha of "poisoning" the
broadcaster's employees against a takeover proposal from him and
Lachlan Murdoch.
KordaMentha, which backed a rival bid by US media giant CBS, has
been forced in the NSW Supreme Court to defend its actions during
the Ten sale process, the report says.
The Australian relates that Andrew Bell, SC, representing
Mr. Gordon's private investment firm Birketu and his regional
television operator and Ten affiliate WIN Corporation, rejected
claims Birketu was a "disappointed underbidder".
Instead, Birketu was a "disappointed overbidder" and the
administrator should put its proposal to creditors for a vote, Dr
Bell told the court Sept. 12, according to the Australian.
He said KordaMentha's press statements endorsing CBS's offer had
had the effect of "poisoning" Ten employees against the bid by
Birketu and Murdoch's private investment firm Illyria, the report
relays.
In press statements, KordaMentha said a court action by Birketu
was "putting at risk the certainty provided to 750 employees
. . . under the CBS transaction".
According to The Australian, Mr. Gordon is seeking a court
declaration that KordaMentha failed to give creditors adequate
information about a joint bid by Birketu and Illyria because a
215-page report was deficient in several respects.
The Australian says KordaMentha on Sept. 11 produced a more
detailed, second 94-page supplementary report to creditors,
following pressure from Gordon and Murdoch, with an accompanying
press release defending the firm against accusations it failed to
adequately explain its decision-making process.
The Australian relates that the decision to release the
additional information vindicated calls for greater clarity,
according to sources close to the plaintiffs.
Unlike the first report, the supplementary report lays out a
previously undisclosed comparison of outcomes to creditors under
the competing bids, The Australian notes.
It showed a proposed transaction from Gordon and Murdoch
delivered a better return to creditors after Ten's content
supplier and largest creditor CBS was included in the deal - a
total of AUD35 million compared to $32 million, The Australian
adds.
About Network Ten
Network Ten is a division of Ten Network Holdings, one of
Australia's leading entertainment and news content companies,
with free-to-air television and digital media assets. Ten Network
Holdings includes three free-to-air television channels - TEN/TEN
HD, ELEVEN and ONE - in Australia's five metropolitan markets of
Sydney, Melbourne, Brisbane, Adelaide and Perth, plus the online
catch-up and streaming service tenplay.
As reported in the Troubled Company Reporter-Asia Pacific on
June 15, 2017, KordaMentha Restructuring partners Mark Korda,
Jenny Nettleton and Jarrod Villani have been appointed voluntary
administrators to Network Ten.
"Network Ten will continue to operate under its existing
management and operating structures with KordaMentha oversight.
Customers, employees and other stakeholders are assured that the
administrators intend to keep the business running. Viewers can
expect the same content they currently enjoy on Network Ten,"
KordaMentha said in a statement.
The appointment will allow the voluntary administrators to
explore options for the recapitalisation or sale of Network Ten.
TEN NETWORK: 21st Century Fox Joins Battle to Block CBS Takeover
----------------------------------------------------------------
The Australian reports that US media company 21st Century Fox,
whose television and film studio Twentieth Century Fox supplies
Ten Network with programming, has intervened in the battle for
Australia's third-placed network.
Fox was given leave to be heard in the dispute on Sept. 12, the
opening day of a two-day hearing in Sydney, the report says.
According to The Australian, Richard McHugh, SC, for the
administrator, said Bruce Gordon's lawyer Andrew Bell, SC's
opening address to the court "misrepresents the relative merits
of the two proposals".
The report notes that the plaintiffs are seeking court orders
that would remove or reduce the voting rights of CBS on the
takeover proposal.
The Australian relates that the hearing comes after a successful
application to the Supreme Court seeking a delay of the second
creditors' meeting, which is now due to take place on Sept. 19.
The hearing continues, the report notes.
About Network Ten
Network Ten is a division of Ten Network Holdings, one of
Australia's leading entertainment and news content companies,
with free-to-air television and digital media assets. Ten Network
Holdings includes three free-to-air television channels - TEN/TEN
HD, ELEVEN and ONE - in Australia's five metropolitan markets of
Sydney, Melbourne, Brisbane, Adelaide and Perth, plus the online
catch-up and streaming service tenplay.
As reported in the Troubled Company Reporter-Asia Pacific on
June 15, 2017, KordaMentha Restructuring partners Mark Korda,
Jenny Nettleton and Jarrod Villani have been appointed voluntary
administrators to Network Ten.
"Network Ten will continue to operate under its existing
management and operating structures with KordaMentha oversight.
Customers, employees and other stakeholders are assured that the
administrators intend to keep the business running. Viewers can
expect the same content they currently enjoy on Network Ten,"
KordaMentha said in a statement.
The appointment will allow the voluntary administrators to
explore options for the recapitalisation or sale of Network Ten.
UMINA ELECTRICAL: Second Creditors' Meeting Set for Sept. 20
------------------------------------------------------------
A second meeting of creditors in the proceedings of Umina
Electrical Service Pty Ltd has been set for Sept. 20, 2017, at
10:30 a.m., at the offices of TPH Insolvency, 133 Macquarie
Street, in Sydney.
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 Sept. 19, 2017, at 4:30 p.m.
Tim Heesh of TPH Insolvency was appointed as administrator of
Umina Electrical on Aug. 21, 2017.
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C H I N A
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CHINA LONGYI GROUP: Recurring Losses Raise Going Concern Doubt
--------------------------------------------------------------
China Longyi Group International Holdings Limited filed its
quarterly report on Form 10-Q, disclosing a net loss of $172,033
on $19,980 of sales for the three months ended June 30, 2017,
compared with a net income of $150,264 on $624,345 of sales for
the same period in 2016.
For the six months ended June 30, 2017, the Company listed a net
loss of $305,767 on $57,257 of sales, compared to a net income of
$63,370 on $640,811 of sales for the same period in the prior
year.
At June 30, 2017, the Company had total assets of $1.04 million,
total liabilities of $2.19 million, and $1.15 million in
stockholders' deficit.
During six months ended June 30, 2017, the Company incurred a net
loss of $305,767. As at June 30, 2017, the Company has a working
capital deficiency of $1,494,611 and accumulated deficit from
recurring net losses of $31,125,755 incurred. As at June 30,
2017, the Company has cash and cash equivalents of $43,986. The
continuation of the Company as a going concern is dependent upon
the continued financial support from its shareholder, the ability
to raise equity or debt financing, and the attainment of
profitable operations from the Company's future business. These
factors raise substantial doubt regarding the Company's ability
to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/CNjH0J
About China Longyi Group
China Longyi Group International Holdings Limited is a holding
company that operates through its Chinese subsidiaries, Beijing
Longyi Biology Technology Co. Ltd. (Beijing SOD) and Chongqing
JiuZhou Dismutase Biology Technology Co. Ltd. (Chongqing SOD).
Through its Chinese subsidiaries, the Company develops,
manufactures and markets its superoxide dismutase (SOD) products
in China. The Company produces and sells SOD Lifeblood, which is
a mixture of SOD and enzymes (natural plant extract essence) as
an antioxidant. Its SOD Lifeblood is a source of SOD, vitamins
and trace elements.
CHINA SENIOR LIVING: WWC P.C. Raises Going Concern Doubt
--------------------------------------------------------
China Senior Living Industry International Holding Corporation
filed its quarterly report on Form 10-Q, disclosing a net income
of $10,061 on $116,509 of revenues for the three months ended
June 30, 2017, compared with a net loss of $5,827 on $122,490 of
revenues for the same period in 2016.
For the six months ended June 30, 2017, the Company listed a net
income of $46,181 on $234,906 of revenues, compared to a net loss
of $6,912 on $238,218 of revenues for the same period in the
prior year.
The Company's independent accountants WWC, P.C., in San Mateo
Calif., states that the Company had incurred substantial losses,
which raises substantial doubt about its ability to continue as a
going concern.
At June 30, 2017, the Company had total assets of $1,047,854,
total liabilities of $521,945, and $525,909 in total
stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/xomy1L
About China Senior Living Industry
China Senior Living Industry International Holding Corporation
operates senior living facilities in Xianyang, the People's
Republic of China. It provides healthcare, medical staff, meal
preparation, and general care services for the elderly. The
company was formerly known as China Forestry, Inc., and changed
its name to China Senior Living Industry International Holding
Corporation in September 2015. China Senior Living Industry
International Holding Corporation was incorporated in 1986 and is
based in Xianyang, the People's Republic of China.
YULONG ECO-MATERIALS: KSP Group Inc. Casts Going Concern Doubt
--------------------------------------------------------------
Yulong Eco-Materials Ltd. filed with the U.S. Securities and
Exchange Commission its annual report on Form 10-K, disclosing a
net loss of $53.19 million on $42.64 million of total revenues
for the fiscal year ended June 30, 2016, compared with a net
income of $8.68 million on $46.23 million of total revenues in
2015.
KSP Group, Inc., states that the Company has suffered significant
losses from operations, has a working capital deficiency, and
insufficient cash to meet its short-term obligations. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
The Company's balance sheet at June 30, 2016, showed $36.44
million in total assets, $25.18 million in total liabilities, and
a total equity of $11.26 million.
A copy of the Form 10-K is available at:
https://is.gd/BziX6b
About Yulong Eco-Materials Ltd.
Yulong Eco-Materials Ltd. is incorporated in Cayman Island and is
located in Pingdingshan City, Henan Province, China. Yulong is
the leading producer of eco-friendly fly-ash bricks and concrete
in Pingdingshan. The Company has a market share of 51% in the
brick market and 30% in the concrete market in Pingdingshan in
both fiscal year 2014 and 2013. The Company currently owns its
assets and conducts its operations through its subsidiary,
Zhengzhou Xing De Enterprise Management & Consulting Co., Ltd.
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I N D I A
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ARYA SHIP: Ind-Ra Migrates 'D' Issuer Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Arya Ship
Charterers Private Limited's (ASCPL) Long-Term Issuer Rating to
'IND D' from 'IND BB' while simultaneously migrating the ratings
to the non-cooperating category. The Outlook was Stable. 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 action is:
-- INR2.04 mil. Long-term loans downgraded and migrated to
non-cooperating category with 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 ASCPL's 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
ASCPL started commercial operations in April 2015 and has a
registered office in Mumbai. The company is engaged in the
charter of vessels to oil companies in the Middle East. It
currently has three charter vessels with a total charter capacity
of 280,000mt.
ATLANTIC FABRICS: CRISIL Assigns 'B' Rating to INR2MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Atlantic Fabrics (AF).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 3 CRISIL A4
Proposed Long Term
Bank Loan Facility 2 CRISIL B/Stable
The ratings reflect a modest scale of operations in the intensely
competitive textile industry. The ratings also factor in large
working capital requirement and a below-average financial risk
profile because of a modest networth and weak debt protection
metrics. These weaknesses are partially offset by the extensive
experience of the partners in the textile industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations in the intensely competitive textile
industry
Though established in 1976, revenue is estimated to have been
small at INR7.52 crore in fiscal 2017. This restricts benefits
associated with economies of scale and limits pricing
flexibility, thus impacting profitability. Intense competition is
expected to continue to constrain the business risk profile over
the medium term.
* Working capital-intensive operations
Gross current assets were high at around 200 days over the three
fiscals ended March 31, 2017. As the product can be shipped only
after the entire consignment is ready for dispatch, large
finished goods inventory of around 90 days is maintained.
* Below-average financial risk profile
The networth was modest at INR6 crore, but the gearing was low at
0.72 time, as on March 31, 2017. Debt protection metrics are
weak: the interest coverage ratio was 1.5 times for fiscal 2017.
The financial risk profile is expected to remain below-average
over the medium term.
Strength
* Extensive industry experience of the partners
The partners have an experience of four decades in the textile
industry thus giving them an understanding of the dynamics of the
textile market and enabling them to establish relationships with
customers in Europe and the US. This should help to achieve
higher revenue growth.
Outlook: Stable
CRISIL believes AF will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' if the scale of operations increases, profitability
margin is stable, and the capital structure improves. The outlook
may be revised to 'Negative' if a decline in revenue or
profitability, large working capital requirement, or debt-funded
capital expenditure weakens the capital structure.
AF is a manufacturing entity based in Karur, Tamil Nadu. The firm
buys spun yarn from mills and then adds value by dyeing, weaving,
and cutting and stitching before supplying to customers. At
inception, it supplied only to domestic customers. But from 1995
it started exporting its finished goods, and ended its domestic
business.
ATLAS CYCLE: ICRA Lowers Rating on INR48cr LT Loan to 'D'
---------------------------------------------------------
ICRA has revised its long-term/short-term rating on the INR84.55-
crore bank facilities of Atlas Cycle (Haryana) Limited (ACL) to
[ICRA]D from the earlier long-term rating of [ICRA]B+ and short-
term rating of [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term-Fund
Based Limits 48.00 [ICRA]D; Revised from [ICRA]B+
Long-term-Non-
fund Based Limits 0.25 [ICRA]D; Revised from [ICRA]B+
Short-term-Non-fund
Based Limits 29.50 [ICRA]D; Revised from [ICRA]A4
Unallocated 6.80 [ICRA]D; Revised from [ICRA]B+
Rationale
The rating revision factors in the recent delays by ACL in
servicing its debt obligations. The company has received large
government orders, which have also resulted in increased working
capital requirements, leading to weak liquidity and cash flow
mismatches.
Key rating drivers
Credit weaknesses
* Delays in debt servicing; mismatch in cash flows resulted in
stressed liquidity position
* Thin operating margins that remain susceptible to increase in
input costs with limited bargaining power due to stiff
competition, specially from cheaper Chinese imports
Description of key rating drivers:
ICRA's rating action take into account the delay in debt
servicing by ACL. ACL had received large government orders, which
had resulted in an increased working capital requirement, for
meeting which, the company had availed ad-hoc limits. However
continued weak liquidity and cash-flow mismatches have resulted
in a delay in repayments. The company's ability to bring about a
sustained improvement in its liquidity position and demonstrate a
satisfactory track record of timely debt servicing will be the
key monitorables.
ACL was started by Mr Janki Das Kapur in 1950. The company
started with manufacturing bicycle saddles in 1951 and bicycles
in 1952. Currently, the company is one of the top bicycle
manufacturers in India by virtue of its strong brand. The company
manufactures bicycles with units located at Sonepat (Haryana),
Sahibabad (Uttar Pradesh) and Malanpur (Madhya Pradesh), besides
a steel tube manufacturing unit at Bawal (Haryana). As part of a
family settlement, Mr. Janki Das Kapur's three sons signed an
MoU, under which the company was divided into three profit
centres, each under the management of one of his sons or their
families. In late 2014, however, the Malanpur unit was closed
down. The bicycles manufactured by the company range from
necessity bicycles to high-end bicycles, including the e-Bike
segment.
BVL EXPORTS: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned B.V.L Exports
Private Limited (BVL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable. The instrument-wise rating action is:
-- INR1,250 mil. Fund-based working capital limits assigned with
IND BB-/Stable/IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect BVL's volatile operating profitability (due
to the trading nature of operations) and weak credit metrics.
EBITDA margin was negative 2.5%-13.5% during FY14-FY17 and stood
at 13.5% in FY17 (FY16: 9.3%). The year-on-year rise in EBITDA
margin was driven by high-margin tobacco trading orders and
better absorption of fixed cost due to an increase in volume.
FY17 financials are provisional in nature.
Moreover, in FY17, net financial leverage (adjusted net
debt/operating EBITDA) was 7.6x (FY16: 8.8x) and EBITDA interest
coverage (operating EBITDA/gross interest expense) was 1.3x
(FY16: 0.8x). The improvement in credit metrics was mainly due to
an increase in operating EBITDA.
The ratings also reflect BVL's tight liquidity, indicated by an
average fund-based facility utilisation of 96.2% for the 12
months ended July 2017, and weak revenue visibility. As of June
2017, BVL had an order book of INR62 million (0.04x of FY17
revenue).
The ratings, however, are supported by moderate, albeit growing,
scale of operations. Revenue rose at a CAGR of 101.66% to
INR1,630 million in FY17, driven by an increase in tobacco
trading orders. In addition, the promoter has a four-decade
experience in tobacco trading.
RATING SENSITIVITIES
Negative: A substantial fall in revenue or EBITDA margin leading
to deterioration in credit metrics could be negative for the
ratings.
Positive: A substantial increase in revenue while maintaining
operating profitability at the current level leading to an
improvement in credit metrics on a sustained basis would be
positive for the ratings.
COMPANY PROFILE
Incorporated on Oct. 29, 1997, BVL is a private limited company
engaged in tobacco procurement and trading. In addition, it is
engaged in the trading of granites. Its registered office is in
Prakasam District, Andhra Pradesh.
CASABLANCA MULTI: Ind-Ra Migrates B- Rating to Not Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Casablanca
Multiventures Private Limited's (CMPL) Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND B-(ISSUER NOT COOPERATING)' on the
agency's website. The instrument-wise rating actions are:
-- INR150 mil. Fund-based Facilities migrated to non-cooperating
category with IND B-(ISSUER NOT COOPERATING)/IND A4(ISSUER
NOT COOPERATING) rating; and
-- INR7.5 mil. Non fund-based Facilities migrated to non-
cooperating category with IND A4(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 9
June 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2015, Mumbai-based CMPL is engaged in the trading
of agricultural commodities and LED lights. Exports account for
70% of the company's revenue.
COASTAL ENERGY: ICRA Moves 'D' Rating to Not Cooperating Category
-----------------------------------------------------------------
ICRA has moved the ratings for the INR1094.501-crore bank
facilities of Coastal Energy Private Limited to the 'Issuer Not
Cooperating' category. The rating is now denoted as:
"[ICRA]D/ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based Limits 113.50 [ICRA]D ISSUER NOT
COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Non-fund Based 645.50 [ICRA]D ISSUER NOT
Limits COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Unallocated Limits 335.50 [ICRA]D ISSUER NOT
COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Rationale
The rating takes into account the continued delays in debt
servicing by the entity. As part of its process and in accordance
with its rating agreement with Coastal Energy Private Limited,
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. In the
absence of requisite information, and in line with SEBI's
Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016,
ICRA's Rating Committee has taken a rating view based on the best
available information.
Key rating drivers
Credit strengths
* Long track record of operations: CEPL has a long standing
presence in the coal trading operations in the domestic market.
The Group company, Coal & Oil Company, has extensive experience
in coal trading in international markets with established
relationship with its suppliers.
Credit weaknesses
* Delay in debt servicing: Stretched liquidity position because
of deterioration in the working capital metrics resulted in delay
in debt servicing.
* Decline in revenues: CEPL's revenues are adversely impacted as
India lowers its dependence on imported coal over the last two
years.
Coastal Energy Private Limited (CEPL) engages in non-coking coal
trading and coal handling services. The company is promoted by
Mr. Ahmed Abdul Rahman Buhari, along with Mr. Ameer Faizal. It
undertakes coal handling services for exports made by its Dubai-
based Group company, Coal & Oil Company, in India. In the last
four-five years, the company has been securing orders through
tenders and around 70% of the sales are made through this
process.
CREATORS CONSTRUCTIONS: Ind-Ra Moves B Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Creators
Constructions' Long-Term Issuer Rating to the non-cooperating
category. The Outlook was Stable. The issuer did not participate
in the rating exercise, despite continuous requests and follow-
ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using these ratings.
The rating will now appear as 'IND B(ISSUER NOT COOPERATING)' on
the agency's website. The instrument-wise rating action is:
-- INR58.5 mil. Fund-based facilities migrated to non-
cooperating category with IND B(ISSUER NOT COOPERATING)/
IND A4(ISSUER NOT COOPERATING) rating;
-- INR60 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 13, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Creator Constructions is an A-class public works department civil
contractor, incorporated in 2010. The company is engaged in mini
civil station, hospital, college and road contract projects. It
derives 90% of its revenue from government projects.
DODHIA SYNTHETICS: CRISIL Lowers Rating on INR42.46MM Loan to B
---------------------------------------------------------------
CRISIL has been consistently following up with Dodhia Synthetics
Limited (DSL; part of the Dodhia group) for obtaining information
through letters and emails dated March 06, 2017 and March 22,
2017 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .65 CRISIL A4 (Issuer Not
Cooperating; Downgraded
from 'CRISIL A4+')
Cash Credit 9.00 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Long Term Loan 42.46 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Packing Credit in 48.50 CRISIL A4 (Issuer Not
Foreign Currency Cooperating; Downgraded
from 'CRISIL A4+')
Proposed Long Term .10 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded
from 'CRISIL BB+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Dodhia Synthetics 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 Dodhia Synthetics Limited is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL B' category or lower.
Based on the last available information, CRISIL has downgraded
the rating at 'CRISIL B/Stable/CRISIL A4'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of DSL and Vasupujya Filaments (VF). This
is because both these entities, together referred to as the
Dodhia group, are in the same line of business, have common
promoters, and have operational linkages and fungible cashflows.
Set up in 1989, DSL, promoted by the Dodhia family, manufactures
polyester dyed yarn and dyed textured yarns. The company has
three manufacturing facilities in Maharashtra.
VF manufactures pre-dyed textured yarn by using the air textured
yarn technology. The firm's facility is situated in Silvassa and
its entire sales are in the domestic market.
ECKO CABLES: CRISIL Reaffirms B- Rating on INR5MM Cash Loan
-----------------------------------------------------------
CRISIL has been consistently following up with Ecko Cables
Private Limited (ECPL) for obtaining information through letters
and emails dated April 13, 2017 and July 18, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 5 CRISIL B-/Stable (Issuer
Not Cooperating; Rating
Reaffirmed)
Letter of Credit 7 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Ecko Cables 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 Ecko Cables Private Limited is
consistent with 'Scenario 5' outlined in the 'Framework for
Assessing Consistency of Information and hence CRISIL has
reaffirmed the rating at 'CRISIL B-/Stable/CRISIL A4'.
ECPL, incorporated in 1981 and based in Delhi, manufactures
cables and wires. Founded by Mr. Amar Singh, the company is
currently managed by his son, Mr. Ravinder Singh.
ESSEM JUTE: CRISIL Reaffirms D Rating on INR5.5MM Cash Loan
-----------------------------------------------------------
CRISIL has been consistently following up with Essem Jute
Industries Limited (Essem) for obtaining information through
letters and emails dated January 20, 2017 and February 10, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .4 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 5.5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 2.0 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 1.9 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 Essem Jute Industries 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 Essem Jute Industries 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'.
Essem was set up in Kolkata by Mr. Tarun Mall and Mr. Kailash
Kumar Jhawar in December 2002. The company manufactures jute
products such as jute yarn, hessian cloth, and bags. The
company's facilities are in Cooch Behar (West Bengal).
FLORIDA ELECTRICAL: ICRA Lowers Rating on INR5.5cr Loan to 'D'
--------------------------------------------------------------
ICRA has revised its long-term rating on the INR8.00-crore fund-
based and proposed facilities of Florida Electrical Industries
Limited to[ICRA]D from [ICRA]BB-.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-CC 5.50 [ICRA]D; revised from
[ICRA]BB-(Stable)
OD 2.00 [ICRA]D; revised from
[ICRA]BB-(Stable)
Unallocated 0.50 [ICRA]D; revised from
[ICRA]BB-(Stable)
Rationale
The revision in rating is on account of overutilization of cash
credit limits for more than 30 days owing to the stretched
liquidity position of the company. The stretched liquidity
position was a result of high amount of receivables. ICRA
however, takes note of the extensive experience of the promoters
in the electrical industry.
Going forward, the ability of the company to improve its
liquidity position and service its debt in a timely manner will
be the key rating sensitivity.
Key rating drivers
Credit strength
* Experienced management provides a competitive edge - The
promoters have been involved in manufacturing and marketing
lightening products for more than three decades and have a
thorough knowledge of the market.
Credit weaknesses
* Stretched liquidity position resulted in delays in debt
servicing - There have been overutilization of cash credit limits
for more than 30 days owing to the stretched liquidity position
of the company.
* Intense competition puts pressure on profitability - The
electrical industry is highly competitive and fragmented in
nature because of the presence of a large number of organised and
unorganised players which leads to pricing pressure for all
industry players, including FEIL. Besides, continuous
technological advancement results in the risk of technological
obsolescence.
FEIL was incorporated in 1994 by Mr. Anil Arora. The company is
involved in the manufacturing of electrical products like CFLs,
FTLs, ballasts, and drivers, and assembles LED lights at its unit
at Bhiwadi, Haryana, and Mayapuri, Delhi. The company operates as
an Original Equipment Manufacturer (OEM) of established players
like Havells India Limited and Osram India Limited. The company
also began receiving orders from Energy Efficiency Services
Limited (EESL) for installation and maintenance of street lights
in various states.
In FY2016, FEIL reported a net profit of INR0.28 crore on an
operating income (OI) of INR44.30 crore, compared with a net
profit of INR0.05 crore on an OI of INR17.24 crore in the
previous year.
FRANK LIFECARE: ICRA Moves B+ Rating to Not Cooperating Category
----------------------------------------------------------------
ICRA has moved the rating for the INR15.00 crore bank facilities
of Frank Lifecare Private Limited (FLPL) to the 'Issuer Not
Cooperating' category. The rating is now denoted as: "[ICRA]B+
(Stable) ISSUER NON COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 14.40 [ICRA]B+ (Stable); ISSUER
NOT COOPERATING; Rating
moved to the 'Issuer Not
Cooperating' category
Long-Term 0.60 [ICRA]B+ (Stable); ISSUER
Unallocated NOT COOPERATING; Rating
Limit moved to the 'Issuer Not
Cooperating' category
Rationale
The rating is based on no updated information on the entity's
performance since the time it was last rated in February 2016.
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating
as the rating does not adequately reflect the credit risk profile
of the entity. The entity's credit profile may have changed since
the time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with Frank Lifecare Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key rating drivers
Credit strengths
* Wide experience of some of the promoters in the health care
industry with a number of specialties like surgery, medicine,
radiology, gynaecology headed by the promoter doctors- The
promoter group has significant experience in the health care
industry with number of specialisations like surgery, medicine
and radiology headed by promoter doctors which enables the
increase in the footfall of the patients.
Credit weaknesses
* Competition due to presence of various established hospitals in
Delhi which is about 40 kilometres from the project location -
There are various established hospitals in Delhi and most people
in Sonipat, Panipat and nearby areas seeking high level secondary
and tertiary medical treatment travel to Delhi which would remain
a competitive threat.
* Weak financial profile depicted by net losses, and subdued
coverage indicators- The revenue of the company remained at
INR0.02 crore in FY2015 as compared to INR1.46 crore in FY2014 as
the company had divested its packaging business during FY2015.
During the 9M FY2016, the hospital achieved sales of INR7.02
crore, this being the first year of operations. Margins of the
company stood at 9.8% for 9M FY2016; however the company reported
a net loss of INR0.71 crore pre taxes and depreciation during
this brief period on account of high interest cost. The return
indicators were low with ROCE at 7.1% and RONW at -12.4%.
Incorporated in 1993 in the name of Frank Pharmaceutical Private
Limited, the company was earlier engaged in the manufacturing of
High Density Polypropylene and High Density Polyethylene bags.
Later, the promoters decided to set up a hospital by the name of
Frank Institute of Medical Sciences in the Sonipat district of
Haryana. Subsequent to the decision to construct a hospital, the
promoters divested the packaging business of the company in 2014.
The construction of the proposed hospital was finished in March
2015 and the hospital commenced operations in April 2015 as per
the scheduled timeline.
In FY2015, the company reported a net loss of INR0.06 crore on an
operating income (OI) of INR0.02 crore, as against a profit after
tax (PAT) of INR0.01 crore on an OI of INR1.47 crore in the
previous year.
G.R WEAVERS: ICRA Moves 'B+' Rating to Not Cooperating Category
---------------------------------------------------------------
ICRA has moved the ratings for the INR23.75 crore bank facilities
of G.R Weavers Private Limited (GRW) to the 'Issuer Not
Cooperating' category. The ratings are now denoted as: "[ICRA]B+
(Stable)/ [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund- 5.75 [ICRA]B+ (Stable) ISSUER
Based-Cash Credit NOT COOPERATING; Rating moved
to the 'Issuer not
Cooperating' category
Long-term fund- 13.00 [ICRA]B+ (Stable) ISSUER
Based-Term loan NOT COOPERATING; Rating moved
to the 'Issuer not
Cooperating' category
Short-term non 5.00 [ICRA]A4 ISSUER NOT
fund-based COOPERATING; Rating moved
to the 'Issuer not
Cooperating' category
Rationale
The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with GRW, ICRA had sent repeated reminders to the company for
payment of surveillance fee that became overdue; however despite
multiple requests; the company's management has remained non-
cooperative. In the absence of requisite information, ICRA's
Rating Committee has taken a rating view based on best available
information. In line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the
company's ratings are now denoted as: "[ICRA]B+ (Stable) /
[ICRA]A4 ISSUER NOT COOPERATING". The lenders, investors and
other market participants may exercise appropriate caution while
using this rating, given that it is based on limited or no
updated information on the company's performance since the time
it was last rated.
Key rating drivers
Credit strengths
* Substantial ramp up of operations - The Company started its
operations in April 2015. The company's total installed capacity
is 4,400 MT for PP/ HDPE bags and the company has effectively
reached at a capacity utilisation of 75% in FY2017 from 68% in
FY2016. The company's scale of operations are expected to
increase going forward as GRW is doubling its capacity from 4400
MT to 8800 MT and the new capacity is expected to be commenced
from January 2018
Credit weaknesses
* Profitability vulnerable to fluctuation in raw material prices-
The profitability of the company remains vulnerable to movement
in raw material prices as the selling prices are revised
depending on the market conditions albeit with a time lag
* High customer and segment concentration risk with majority
supply to Cement manufacturers- The company majorly supplies the
PP/HDPE bags to the cement industry and is associated with large
names such as Jaypee Cement, Heidelberg Cement, Lafarge cement,
Prism Cement etc. The customer concentration risk for the company
is high as 89% of total sales in FY2017 (increased from 80% in
FY2016) are from top 6 customers of the company.
GR Weavers Private Limited (GRW) was incorporated in March 2013
and is into manufacturing of PP/HDPE woven sacks/bags. The
company's manufacturing facility is located in Morena district of
Madhya Pradesh and has an installed capacity of 4,400 MT per
annum. The company started its operations in April 2015 and
primarily supplies the bags to cement manufacturers.
GEM BATTERIES: ICRA Lowers Rating on INR18cr Loan to 'D'
--------------------------------------------------------
ICRA has revised its long term rating on the INR18.00 crore fund
based bank facilities of Gem Batteries Private Limited (GBPL) to
[ICRA] D from [ICRA] B-.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based Limits 18.00 [ICRA]D revised from
[ICRA] B-
Rationale
The ratings revision factors in the delay in the debt servicing
by the company because of temporary shutdown of operations,
leading to an elongated cash conversion cycle and inventory
losses. ICRA has limited information on the entity's performance
since the time it was last rated in September, 2016.
Key rating drivers
Key strengths
* More than a decade long experience of the promoters in the
industry: The company's promoters have experience of more than 15
years in the auto ancillary industry.
Key weaknesses
* Delay in debt servicing - The key driver of the rating revision
is the delay in servicing the debt obligations due to inventory
losses.
Incorporated on August 13, 2003, Gem Batteries Private Limited
(GBPL) manufactures lead batteries mainly for the automotive and
industrial segment. The company's manufacturing plant is located
at Baddi, Himachal Pradesh and the current manufacturing capacity
is around 20,000 batteries per month. It is primarily a family
run concern with Mr. N.M. Gupta (his wife Mrs. Bimal Gupta) and
his son and daughter-in-law being the directors. Prior to
entering the battery manufacturing business, the promoters were
involved in business if trading in batteries. The company sells
its products in the replacement market through a distributor
network.
GEO SEA: Ind-Ra Migrates BB+ Issuer Rating to Not Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Geo Sea Foods'
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:
-- INR230 mil. Fund-based limit migrated to non-cooperating
category with IND BB+(ISSUER NOT COOPERATING)/IND A4+(ISSUER
NOT COOPERATING) rating; and
-- INR20 mil. Non-fund-based limit migrated to non-cooperating
category with IND A4+(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Sept. 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1968 as a partnership firm, Geo Sea Foods started
its operations in June 1970. It is engaged in the processing and
export of different varieties of seafood such as shrimp, fish,
squid, and cuttlefish. The firm is managed by Mr. K G Lawrence
and his family, including Mr. Pradeesh Lawrence and Mr. Vivek
Lawrence.
GOEL EXIM: ICRA Moves 'D' Rating to Not Cooperating Category
------------------------------------------------------------
ICRA has moved the ratings for the INR50.00-crore bank facilities
of Goel Exim India Private Limited (GEIPL) to the 'Issuer Not
Cooperating' category. The rating is now denoted as: "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund- 50.00 [ICRA]D; ISSUER NOT
based limits COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Rationale
The rating is based on no updated information on the company's
performance since the time it was last rated in March 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the
time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with Goel Exim India Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key rating drivers
Credit strengths
* Experience of promoters - GEIPL is a part of the Delhi based
jewellery group involved in the manufacturing, wholesale and
retail sales of gold and diamond. Mr. Pradeep Kumar Goel and his
brothers have experience of more than a decade in handling the
group operations smoothly in the jewellery industry.
Credit weaknesses
* Delays in debt servicing due to stretched liquidity - The
slowdown in the demand for GEIPL jewellery products resulted in
blockage of funds, leading to stretched liquidity and delays in
debt servicing.
* High regional and customer concentration risk - The company
faces high regional concentration risk with the majority of the
customers based in Delhi. Besides, the customer concentration
risk
continues to be high for GEIPL with top three customers
accounting for half of the revenues in FY2014.
* Intense competition, given the low complexity of work involved
- The company faces stiff competition from organised as well as
unorganised players in the gems and jewellery industry, which
limits its pricing flexibility and bargaining power with
customers, thereby putting pressure on its revenues and margins.
* Vulnerability of profitability to any adverse fluctuation in
gold prices - The company is not completely hedging its position
in the gold and hence, any sustainable fall in gold prices may
affect the profitability of the company to a large extent.
Incorporated in 2004, GEIPL is a manufacturer, wholesaler and
trader of gold, diamonds and silver ornaments/jewellery. The
customers of GEIPL are primarily wholesalers and retailers based
in New Delhi area. The company is part of the Delhi Based Group
engaged in the manufacturing, wholesale and retail sales of gold
and diamond.
GOYAL GLASSWARE: CRISIL Cuts Rating on INR18MM Cash Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Goyal Glassware
Private Limited (GGL) for obtaining information through letters
and emails dated April 12, 2017 and May 08, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 18 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB-/Stable')
Letter of Credit 4.25 CRISIL A4 (Issuer Not
Cooperating; Downgraded
from 'CRISIL A4+')
Proposed Long Term 0.52 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded from
'CRISIL BB-/Stable')
Term Loan 14 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB-/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Goyal Glassware 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 Goyal Glassware Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has downgraded the rating to 'CRISIL B/Stable/CRISIL A4'.
GGL, incorporated in 2013, manufactures glass bottles mainly for
the liquor industry; it is based in Firozabad (Uttar Pradesh).
The company was incorporated as Goyal Iron & Steel Works (GISW)
in Agra on April 4, 1996, and manufactured mild-steel ingots, and
other castings. The firm was reconstituted as GGL in 2013. GGL is
promoted by Mr. Nitesh Goyal along with his family and friends.
GHANSHYAM DALL: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ghanshyam Dall
Mill's (GDM) 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:
-- INR75 mil. Fund-based limits migrated to non-cooperating
category with IND BB-(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 12, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
GDM is a partnership firm established in 1972 by the family
members of GDM group. The firm's main business is processing all
types of pulses and gram flour. The company sells its products
under the Hathotda, Double Sher and Golden Coin brands.
GHANSHYAM PULSES: Ind-Ra Migrates B+ Rating to Not Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ghanshyam
Pulses' Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise, despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND
B+(ISSUER NOT COOPERATING)' on the agency's website. The
instrument-wise rating actions are:
-- INR87.5 mil. Fund-based limits migrated to non-cooperating
category with IND B+(ISSUER NOT COOPERATING) rating; and
-- INR17.5 mil. Term loan due on September 2022 migrated to non-
cooperating category with IND B+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
GHANSHYAM UDHYOG: Ind-Ra Moves B+ Rating to Not Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ghanshyam
Udhyog's (GU) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR87.5 mil. Fund-based limits migrated to non-cooperating
category with IND B+(ISSUER NOT COOPERATING) rating; and
-- INR15 mil. Term loan migrated to non-cooperating category due
on September 2022 with IND B+(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
GU is a partnership firm established in 1998. The firm's main
business is processing all types of pulses and gram flour. The
firm sells its products under the Hathotda, Double Sher and
Golden Coin brands.
GINNI HOLDINGS: ICRA Moves 'D' Rating to Not Cooperating Category
-----------------------------------------------------------------
ICRA has moved the ratings for the INR25.00-crore bank facilities
of Ginni Holdings to the 'Issuer Not Cooperating' category. The
rating is now denoted as: "[ICRA]D/[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund-
based limits 22.00 [ICRA]D; ISSUER NOT
COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Short-term non- 1.00 [ICRA]D; ISSUER NOT
fund based limits COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Unallocated limits 2.00 [ICRA]D; ISSUER NOT
COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Rationale
The ratings are based on no updated information on the entity's
performance since the time it was last rated in March 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the
time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with Ginni Holdings, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite
information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key rating drivers
Credit strengths
* Experience of promoters - Ginni Holdings is a part of the Delhi
based jewellery group involved in the manufacturing, wholesale
and retail sales of gold and diamond. Mr. Pradeep Kumar Goel and
his brothers have experience of more than a decade in handling
the group operations smoothly in the jewellery industry.
Credit weaknesses
* Delays in debt servicing due to stretched liquidity - The
slowdown in the demand for Ginni Holdings jewellery products
resulted in blockage of funds, leading to stretched liquidity and
delays in debt servicing.
* High geographical concentration risk - The company faces high
geographical concentration risk with majority of the customers
based in Delhi.
* Intense competition, given the low complexity of work involved
- The company faces stiff competition from organised as well as
unorganised players in the gems and jewellery industry, which
limits its pricing flexibility and bargaining power with
customers, thereby putting pressure on its revenues and margins.
* Vulnerability of profitability to any adverse fluctuation in
gold prices - The company is not completely hedging its position
in the gold and hence, any sustainable fall in gold prices may
affect the profitability of the company to a large extent.
Established in 2006 as a partnership firm, Ginni Holdings is
promoted by Mr. Pradeep Kumar Goel and his family. Ginni Holdings
is a manufacturer, wholesaler and trader of gold, diamonds and
silver ornaments/jewellery. It has presence largely in gold
jewellery and its customers are primarily wholesalers and
retailers based in New Delhi.
GTN INDUSTRIES: ICRA Reaffirms 'B' Rating on INR92.49cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B for the
INR92.49-crore (revised from INR67.80 crore) term loan facilities
and the short-term rating of [ICRA]A4 outstanding on the
INR87.36-crore fund-based and INR26.20-crore non-fund based
facilities of GTN Industries Limited (GIL). ICRA has also
assigned a long-term/short-term rating of [ICRA]B/A4 for INR0.31-
crore unallocated limits of GIL. The outlook on the long-term
rating is stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 92.49 [ICRA]B (Stable); reaffirmed
Fund-Based Limits 87.36 [ICRA]A4; reaffirmed
Non Fund-Based
Limits 26.20 [ICRA]A4; reaffirmed
Unallocated Limits 0.31 [ICRA]B (Stable)/A4; assigned
Rationale
The re-affirmation of ratings consider the established presence
of the company in the domestic cotton yarn market, its long
standing relationship with reputed customers in the domestic and
exports markets, diversified product base with presence in
compact and gassed yarns and rich experience of the promoters in
the industry. The ratings also factor in the financial
flexibility enjoyed by GIL by being part of the Hyderabad based
GTN Group (which has diversified business interests ranging from
textiles to engineering), with consistent track record of funding
support from the promoter group primarily GTN Engineering Limited
(rated at ICRA BBB+ (stable)/A2+), by the way of issue of
redeemable preference shares. The ratings however remain
constrained on account of the continued weak performance of GIL,
marked by weak earnings from operations and consequent net losses
necessitating external funding to support liquidity. Cash flows
have been aided by the fund infusion from promoters along with
increase in bank borrowings which have been utilized towards
meeting the capital expenditure, working capital requirements and
large debt repayment obligations. Rising debt levels along with
continuous losses have resulted in capital structure and coverage
indicators of GIL remaining at modest levels. Performance during
FY2017 and Q1FY2018 was constrained by the production disruption
at GIL's Nagpur facility (which accounts for 44% of the capacity)
and firm cotton prices, in addition to the overall demand
scenario being weaker than expected. The ability of the company
to improve its volumes and consequent earnings from operations
and liquidity position, amid the challenging demand scenario and
intense competition would remain key rating sensitivities.
Key rating drivers
Credit strengths
* Established presence in the spinning industry for over five
decades and diversified product range within the cotton yarn
segment - GIL has been operating in the cotton yarn market for
over five decades, enjoying established relationship with
customers in both the domestic and exports markets. GIL has
presence across a diversified product base, with the capability
to produce yarn in a wide count range from 10s to 160s apart from
value added facilities in the form of 100% compact, gassed,
doubling and twisting capacities.
* Financial flexibility enjoyed being part of the GTN group - GIL
is the flagship company of the Hyderabad based GTN Group with
diversified business interests. It has received steady financial
support over the years from the promoter group primarily GTN
Engineering Limited, by the way of preference shares supporting
the cash flows and debt servicing.
Credit weaknesses
* Weak financial profile characterised by negative net-worth
owing to sustained losses incurred over the years and strained
liquidity position with increasing dependence on external funding
support - GIL's financial profile remains weak on account of the
low earnings from operations over the years, resulting in
sustained net losses and consequent erosion of net-worth; high
working capital intensity coupled with high repayment obligations
have resulted in rising dependence on funding support from
promoters and incremental debt to support cash flows.
* Earnings exposed to the fluctuations in cotton prices amidst
challenging demand scenario and intense competition - Earnings of
GIL remain exposed to the volatility in cotton prices as
witnessed during FY2017, with the pricing flexibility of the
company being limited by intense competition and demand being
lower than expected during the recent quarters owing to weak
export demand for cotton yarn
GTL, the flagship company of the Hyderabad based GTN group, is
engaged in manufacturing and trading of cotton yarn. GTN, which
was founded by Late M L Patodia, is presently managed by Mr. M K
Patodia. The Company's shares are listed on the Indian bourses
and the promoters hold 74.3% stake in the entity. GTN has an
installed capacity of 85,344 spindles across its two spinning
units at Medak, Andhra Pradesh and Nagpur, Maharashtra. The
company procures Indian cotton varieties such as Bunny, MCU-5,
ECH and S-6, which constitute ~60-65% of total purchases while
the import cotton varieties like Pima and Giza constitute the
rest. GTN markets its produce majorly in the domestic markets,
contributing to over 60% of its revenues. The rest is constituted
by exports, made to the markets of Brazil, Italy, Korea and
Turkey. In September 2014, GTN hived off its loss-making yarn
processing and knitting division to GTN Engineering Limited via
slump sale for sale consideration of INR30.50 crore.
JAGANNATH POLYMERS: CRISIL Reaffirms 'B' Rating on INR5.6MM Loan
----------------------------------------------------------------
CRISIL has been consistently following up with Jagannath Polymers
Limited (JPL) for obtaining information through letters and
emails dated May 24, 2017 and June 7, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.6 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan .38 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 4.02 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Jagannath Polymers 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 Jagannath Polymers Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL B/Stable'.
Incorporated in 1996 and promoted by the Cuttack-based Mr. M K
Subudhi and his family members, JPL manufactures PP woven sacks
for the cement and fertiliser industries. Facility is in
Jagatpur, Cuttack.
JAI LAXMI: ICRA Assigns 'B' Rating to INR6cr Cash Loan
------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B on the INR6.00
crore fund-based bank facilities of Jai Laxmi Cement Co. Private
Limited. The outlook on the long-term rating is 'Stable'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Cash
Credit 6.00 [ICRA]B (Stable); assigned
Rationale
ICRA's rating factors in the company's small scale of operations
in the cement industry, dominated by large established players.
The revenues have continuously declined in the last three years
as it faces strong competition from other regional players and
large established players, which typically benefit from having
backward integrated into manufacturing of clinker and captive
power generation facilities. ICRA also notes the fluctuation in
profitability on account of the adverse cost structure and the
limited control over operating parameters due to lack of backward
integration and presence in a cyclical industry. ICRA notes that
the fluctuation in the prices of clinker which it procures from
outside, along with trading activities, has led to low and
fluctuating operating profit margins in the past.
The ratings are also constrained by the fact that JLCPL continues
to remain vulnerable to high geographical concentration risks as
its operations are confined primarily to Uttar Pradesh and Bihar.
Nonetheless, the distorted supply-demand position exerts pressure
on the prices of cement manufacturers, including JLCPL. It is
unlikely that the company's financial position will show any
improvement in the medium term. Moreover, ICRA also notes that
the working capital intensity of the company has historically
remained high with stocking of inventory and high customer
advances for raw material procurement. Nevertheless, ICRA
favorably notes that the underlying risks are mitigated to some
extent by promoters' sound track record in managing this business
in the past and modest demand outlook for the cement industry-
driven investments in the end user industries. ICRA also
favorably notes the comfortable capital structure of the company
with a gearing of 0.54 times as on March 31, 2016 and the absence
of any term debt.
Going forward, consistent growth in the topline on the back of
improvement in demand and profitability will be the key rating
sensitivity.
Key rating drivers
Credit strengths
* Extensive experience of the promoters in the cement
manufacturing industry: JLCPL was established in 1987 and is
fully owned by the promoters and their family members who have
more than three decades of experience in the cement industry.
They also have other group companies in which are present in the
areas of cement, steel and coke.
* Low reliance on external debt: The working capital needs of the
company have been funded through bank borrowings and interest
free unsecured loans infused by promoters. There is no term debt
on the books of the company which has led to comfortable capital
structure with a gearing of 0.54 times as on March 31, 2016.
Credit weaknesses
* Continual decline in sales: JLCPL is a small-sized player in
the cement industry and its top-line has seen continuous decline
from INR40.86 crore in FY2014 to INR31.40 crore in FY2016 and
further to INR17.08 crore in 9M FY2017. The revenue had been
declining due to the drop in cement prices, coupled with lower
volume off take owing to weak demand from the construction
segment and other factors such as demonetisation.
* Fluctuating and low operating profitability margins: JLCPL is
not backward integrated and is dependent on procuring raw
material namely, clinker from other cement players. This leads to
an adverse cost structure for the company as it is exposed to
fluctuations in the prices of clinker (resulting in low value
addition) and lack of captive power generation ability as power
cost is a major cost component for cement players.
* High net working capital intensity: The working capital
intensity of the company has been quite high with NWC/OI at
44.15% in FY2016 led by high customer advances for procurement of
raw material and high inventory days.
* Strong competition from other established players and other
regional players in the industry: Cement in India is a fragmented
industry with more than 160 players with a combination of large
cement plants (~210) and mini and white cement plants (~370).
Currently, the top three cement producers - Holcim-controlled ACC
Ltd and Ambuja Cement Ltd, Aditya Birla Group's Ultratech Ltd,
and Dalmia Cement - hold about 35% of the cement market in India.
JLCPL faces stiff competition from these players apart from
regional players which limits its pricing ability. The large
players command a premium on their brand names which further
reduces the bargaining power of small lesser known brands.
* Vulnerability to cyclical trends: Cement exhibits strong
cyclicality, driven by the lumpiness in the capacity additions on
the supply side. The industry is relatively insulated against
global trends as the large freight component makes imports
unviable. Thus, the competition in the Indian cement industry is
largely restricted to domestic manufacturers. Therefore,
companies with strong operational and financial fundamentals are
able to withstand the cyclicality better compared to others.
* High geographical concentration risk: With cement being a bulk,
transport-expensive commodity, the production has been
concentrated on a regional basis. JLCPL sells only in Uttar
Pradesh and Bihar unlike other large players whose plants are
located across the country.
JLCPL was incorporated in September 1987 and manufactures
Portland Pozzolana Cement (PPC) cement. The company has a
manufacturing plant in Ram Nagar, Chandauli (Varanasi), which is
ISO 9001:2008 certified. It is also involved in the trading of
clinker and fly ash. The daily installed capacity of the company
is ~350 MT, which translates into an annual capacity of 120000 MT
per annum. The company is fully owned by the promoters and their
family members. It sells its product through the dealer network
and mainly in the states of Uttar Pradesh and Bihar. The raw
material, which is clinker, fly ash and gypsum, is procured from
Madhya Pradesh, Uttar Pradesh and Rajasthan.
JAYPEE INFRATECH: High Court Order Revives Hope Among Homebuyers
----------------------------------------------------------------
Vinod Rajput at Hindustan Times reports that the Supreme Court
order on Jaypee Group's insolvency case has revived hope of
getting flats or refund among homebuyers in Noida, Greater Noida
and Yamuna Expressway areas.
After the SC order, homebuyers in other builders' projects such
as Amrapali Group that is also facing insolvency case for its
Silicon City project, are also hopeful of getting either refund
or flats, the report relates.
"SC order has revived hope among homebuyers because the order is
very positive for us. We did not imagine SC will be so stern
against a builder. Now we are planning to hire the same lawyer
representing the Jaypee Group buyers. We have already spoken with
him. We want the SC to club our case with the Jaypee Group's
buyers if possible so that our investment is also safe," the
report quotes Ratnesh Rahul, a buyer of Amrapali Silicon City
project located in Sector 76, as saying.
According to Hindustan Times, the Supreme Court on Sept. 11
directed holding companies of Jaypee Infratech to deposit
INR2,000 crore by October 27 in the latest development in an
ongoing suit where homebuyers have challenged the company's move
to declare itself bankrupt.
Last week, the apex court had stayed insolvency proceedings
against Jaypee Infratech, the report recalls. More than 30,000
buyers of Jaypee Infratech in Noida and Yamuna Expressway areas
are worried that the insolvency proceedings would leave them in a
lurch and without recourse to get either a house or compensation
from the company.
Hindustan Times says the Jaypee Group homebuyers have welcomed
the Court's order and are now "sure that their investment is
safe".
"It is a very good order by the SC with an aim to protect buyers'
investment. The SC order has fixed liability on the builder, who
was trying to fool homebuyers by declaring itself as bankrupt in
one company - Jaypee Infratech and running another company
Jaypee Associates without any financial hurdle. The order of
depositing INR2,000 crore by October 27 has given hope to buyers
that their investment is safe now," Hindustan Times quotes SK
Nagrath, president of Jaypee Aman buyers association, as saying.
About Jaypee Infratech
Jaypee Infratech Limited (JIL) is engaged in the real estate
development. The Company's business segments include Yamuna
Expressway Project and Healthcare. The Company's Yamuna
Expressway Project is an integrated project, which inter alia
includes construction of 165 kilometers long six lane access
controlled expressway from Noida to Agra with provision for
expansion to eight lane with service roads and associated
structures on build, own, operate and transfer basis. The Company
provides operation and maintenance of Yamuna Expressway for over
36 years, collection of toll and the rights for development of
approximately 25 million square meters of land for residential,
commercial, institutional, amusement and industrial purposes at
over five land parcels along the expressway. The Healthcare
business segment includes hospitals. The Company has commenced
development of its Land Parcel-1 at Noida, Land Parcel-3 at
Mirzapur and Land Parcel-5 at Agra.
JONSON RUBBER: Ind-Ra Assigns BB Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jonson Rubber
Industries Limited (JRIL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable. The instrument-wise rating actions are:
-- INR9.1 mil. Term loan due on September 2018 assigned with IND
BB/Stable rating;
-- INR220.0 mil. Fund-based limits assigned with IND
BB/Stable/IND A4+ rating; and
-- INR380.0 mil. Non-fund-based limits assigned with IND A4+
rating.
KEY RATING DRIVERS
The ratings reflect JRIL's moderate scale of operations and high
debt, leading to weak credit metrics and stressed liquidity.
According to the provisional financials for FY17, revenue was
INR1,205.58 million (FY16: INR970.20 million), debt was INR485.84
million (INR396.39 million), gross interest coverage (operating
EBITDA/gross interest expense) was 1.88x (1.47x) and net
financial leverage (adjusted net debt/operating EBITDAR) was
4.96x (6.02x). JRIL's use of the cash credit limits was 96.56% on
average during the 12 months ended July 2017.
The ratings, however, are supported by JRIL's founders' over four
decades of experience in manufacturing various types of conveyors
and transmission belts and allied products. The ratings are
further supported by satisfactory EBITDA margins of 7.68% in FY17
(FY16: 6.54%).
RATING SENSITIVITIES
Negative: Deterioration of the EBITDA margins leading to weaker
credit metrics will be negative for the ratings.
Positive: A significant improvement in the revenue along with
improvements in the credit metrics will be positive for the
ratings.
COMPANY PROFILE
JRIL was incorporated in 1979 and manufactures various types of
conveyors and transmission belts, rubber sheets, industrial
fabrics and allied products. The registered office is located in
Delhi and the factory is located in Sonepat, Haryana.
KRISHNA CONSTRUCTIONS: ICRA Assigns B+ Rating to INR15cr Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA] B+ to the
INR15.00-crore fund based facilities of Krishna Constructions.
The outlook on the long-term rating is 'stable'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Term
Loan 15.00 [ICRA] B+ (Stable); Assigned
Rationale
The assigned rating factors in the extensive experience of the
promoter group in the real estate industry; the strategic
location of the project close to the Information Technology hub
of Pune; and receipt of all approvals necessary for project
execution. The rating, however, remains constrained on account of
high reliance on external debt and advances from customers; with
moderate bookings and debt yet to be tied up posing funding risk
to an extent. Timely completion of the project without any
significant cost and time overruns while maintaining healthy
sales velocity and collection efficiency will remain critical to
avoid cash flow mismatches and will be the key rating
sensitivities going forward. Being a partnership firm, any
substantial withdrawals by the partners may impact the capital
structure of the firm.
Key rating drivers
Credit strengths
* Extensive experience of the promoters in the real estate
industry, healthy execution track record: The Pune based Krishna
Constructions is a part of the Mistry Premji Sunderji & Company
(MPS Group) which is engaged in execution of residential and
commercial projects since 1892. The group has developed close to
1.20 million sq ft area in Mumbai and Pune over the past fiscals.
* Good track record in mid income group housing segment in Mumbai
and Pune regions: The MPS Group has constructed several
residential and commercial projects over the years, with a
majority of the executed projects aimed at mid income group
housing segment. KC is currently executing a residential-
commercial project named 'Lotus Court' in Kharadi area of Pune,
and the target customer group for the project is the customers
belonging to mid income group housing segment.
* Strategic location of the project in the vicinity of IT hub of
Pune; Requisite approvals for the project in place: The project
is located at Kharadi in proximity to the main Pune city and
remains
adequately connected by roads to the surrounding industrial area.
IT professionals employed mainly in the Kharadi and Hadapsar
areas form the bulk of customers. The project has all the
necessary
Rating Action
Credit weaknesses
* High reliance on external debt and customer advances; moderate
bookings and debt to be tied up pose funding risk: The project
has high reliance on external debt and advances from customers
for project execution and funding. Also, with moderate bookings
on its books and debt yet to be tied up, the project is exposed
to funding risk to an extent.
* Exposed to inherent project execution risks though current
construction status of the project is as per the schedule: Given
the nascent stage of the ongoing project, the firm is exposed to
inherent project execution risk. However, the firm has maintained
current construction status of the project in line with the
schedule which gives comfort against the said risk to an extent.
* Exposed to market risks and current slowdown in the real estate
sector: Given the moderate level of bookings done since its
launch in Mar 2016, the project is exposed to market risks and
also to the slowdown currently prevailing in the real estate
sector especially after the recent demonetization drive by the
government. Maintaining healthy sales velocity and collection
efficiency will remain critical to avoid cashflow mismatches for
the firm.
* Geographic concentration risk with presence limited to two
cities: MPS group is engaged in residential and commercial
project construction majorly in the Mumbai and Pune regions.
Presence limited to two cities exposes the group to a moderate
level of geographic concentration. Any policy shift by the
government affecting the geographies where MPS group is present
can influence the project executions in the regions concerned.
Established in year 2004, Krishna Constructions is a partnership
firm presently engaged in its first project - Lotus Court at
Kharadi, Pune. It is a residential and commercial project
involving construction of 62 residential units and 12 commercial
units. The project would comprise two 10 storey buildings having
commercial units at the ground floor, two floors for vehicle
parking and the remaining floors of residential units. The
residential units would comprise 2BHK and 3BHK flats, with prices
approximated at INR55 lakh and INR75 lakh respectively. The
target customer group for the project is people from middle and
upper middle classes. The construction of Lotus Court began in
November 2015, and is expected to be completed by December 2020.
The firm launched the project in March 2016, and so far has sold
13 residential units accumulating a booking advance of INR1.64
crore. The firm is yet to launch the commercial units for sale.
LAXAI LIFE: Ind-Ra Upgrades Issuer Rating to BB-, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Laxai Life
Sciences Private Limited's (Laxai; formerly Laxai Avanti Life
Sciences Private Limited) Long-Term Issuer Rating to 'IND BB-'
from 'IND B+'. The Outlook is Stable. Instrument-wise rating
actions are:
-- INR120 mil. (increased from INR1.1 mil) Term loans due on
March 2025 upgraded with IND BB-/Stable rating;
-- INR30 mil. (increased from INR25 mil.) Fund-based working
capital limit upgraded with IND BB-/Stable/IND A4+ rating;
and
-- INR5.5 mil. Non-fund-based working capital limit withdrawn
(repaid in full) with WD rating.
KEY RATING DRIVERS
The upgrade reflects Ind-Ra's expectation of a sustainable
improvement in Laxai's credit profile by FY19 owing to an
expected growth in revenue, post the expansion of its research
and development unit and completion of an active pharmaceutical
ingredient manufacturing unit in Hyderabad, Telangana by January
2018. The company will incur a debt-led capex of around INR175.1
million in FY18.
As per FY17 provisional financials, revenue grew to INR154.9
million (FY16: INR101.4 million, FY15: INR129.4 million).
However, EBITDA margin remained volatile between 7.3% and 17.6%
over FY13-FY17 and declined to 13.4% in FY17P (FY16: 17.6%, FY15:
7.6%) owing to varying revenue mix. Laxai generates revenue from
three major segments: Full Time Equivalent (FY17: 30% of revenue,
FY16: 37% of revenue), Fee For Service (58%, 45%) and Analytical
(7%, 11%).
Net financial leverage (total adjusted net debt/operating
EBITDAR) deteriorated to 4.4x in FY17P (FY16: 3.9x) and interest
coverage (operating EBITDA/gross interest expense) to 3.6x (FY16:
4.3x) on account of an increase in debt to INR91.2 million
(INR70.3 million) and the subsequent increase in financial
expenses. Ind-Ra expects the net financial leverage and interest
coverage to deteriorate further in FY18, but improve to around 4x
and 3x, respectively, in FY19, following the completion of the
units.
The ratings, however, are constrained by the company's elongated
working capital cycle of up to 190 days (FY17P: 191 days, FY16:
135 days), inherent to the contract research business. Effective
May 25, 2017, the company's name was changed from Laxai Avanti
Life Sciences Private Limited; along with a change in management
and shareholding structure. During the transition period, the
company funded the working capital requirements through internal
accrual and fresh equity infusion. Laxai's average use of working
capital limits was around 50% during the two months ended August
2017.
However, the ratings continue to be supported by the company's
operational track record of nearly one decade and the present
management's combined experience of more than five decades in the
pharmaceutical industry.
RATING SENSITIVITIES
Positive: Future developments that could collectively lead to a
positive rating action:
-- successful completion of the ongoing capex;
-- substantial growth in the revenue and profitability;
-- sustained improvement in the credit metrics; and
-- Management of the working capital cycle.
Negative: A decline in the revenue and/or operating profitability
leading to deterioration in the credit metrics will be negative
for the ratings.
COMPANY PROFILE
Incorporated in 2006, Laxai is a contract research company
providing drug discovery and development services to domestic and
international pharmaceutical companies. It has a research and
development unit in Hyderabad, Telangana.
MALAR SOLVENT: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Malar Solvent
Extraction Private Limited's (Malar) 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:
-- INR50 mil. Fund-based 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
Aug. 18, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1991, Malar is a Karaikudi district, Tamil Nadu-
based company engaged in extracting oil from rice bran. The
company's facility has an input capacity of about 200MT/day.
MANPURIA AGRO: Ind-Ra Migrates D Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Manpuria Agro
Products Private Limited's (MAPPL) Long-Term Issuer Rating to
'IND D' from 'IND BB' while simultaneously migrating it to the
non-cooperating category. The Outlook was Stable.
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:
-- INR70 mil. Fund-based limit (long-term) downgraded and
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating; and
-- INR180 mil. Proposed fund-based limit (long-term) downgraded
and migrated to non-cooperating category with Provisional IND
D(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; the
rating action is taken based on best available information.
KEY RATING DRIVERS
The downgrade reflects MAPPL's delays in debt servicing during
the 12 months ended July 2017 due to a tight liquidity position.
RATING SENSITIVITIES
Timely debt servicing for at least three consecutive months would
lead to a positive rating action.
COMPANY PROFILE
Started by Mr Vishnu Kumar Manpuria in 1979, MAPPL runs a sugar
trading business. It is a part of Manpuria Group.
NAGESHWARI CERAMIC: ICRA Reaffirms B+ Rating on INR4.70cr Loan
--------------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]B+ to the
INR4.70 crore term loan facility and the INR3.00 crore cash
credit facility of Nageshwari Ceramic Private Limited. ICRA has
also re-affirmed the short-term rating of [ICRA]A4 to the INR1.50
crore non-fund based bank guarantee of NCPL. The outlook on the
long-term rating is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Term
Loan 4.70 [ICRA]B+ (Stable); re-affirmed
Fund-based Cash
Credit 3.00 [ICRA]B+ (Stable); re-affirmed
Non-fund based-
Bank Guarantee 1.50 [ICRA]A4; re-affirmed
Rationale
The re-affirmation of ratings continues to favourably factor in
the ramp up in the scale of operations, experience of the
promoters spanning more than a decade in the ceramic industry.
The rating continues to factor in the location advantage, which
ensures easy availability of raw materials.
However, the ratings are constrained by the company's small scale
of operations and the intensely competitive industry. The ratings
are further constrained by the low net margins, leverage capital
structure with high gearing level and moderate debt coverage
indicators. The ratings also take into account the high
utilisation of working capital, which stood at 98.79% during the
April 2016 to June 2017 period due to high receivables and
inventory holding period. Furthermore, the ratings factor in the
exposure of the company's profitability to volatility in
fluctuations in the raw material and fuel prices.
Key rating drivers
Credit strengths
* Experience of promoters - Incorporated in 2014 for the purpose
of manufacturing ceramic wall tiles, NCPL makes various wall
tiles in three dimensions -- 12"X12", 12"X18" and 12"X24". The
promoters have had more than a decade in the ceramic industry
through other concerns before venturing into the ceramic wall
tiles industry.
* Favourable location for raw material - The company's
manufacturing facility is located in Morbi, Gujarat, which
ensures easy availability of raw material.
* Increase in the operating income - The operating income
increased to INR13.85 crore in FY2017 as against INR8.88 crore in
FY2016 (nine months' operation) due to increase in the sales
volume from 6,57,618 boxes to 12,79,727 boxes in FY2017.
Credit weaknesses
* Financial profile characterised by small scale of operations
with low profitability and leveraged capital structure - The
company's scale of operations remains moderate with low net
margins owing to high depreciation and interest expenses. Gearing
level continued to remain high due to leveraged capital
structure. The debt coverage indicators also remained moderate.
* High working capital requirement resulting from high
receivables and inventory holding - The working capital
requirement remained high at 98.79% during the April 2016 to June
2017 period due to elongated receivables and high inventory
holding period.
* Intense competition from established as well as unorganised
players - The company faces stiff competition from established
tile manufacturers as well as unorganised players, which limits
its pricing flexibility.
* Vulnerability of profitability to any adverse fluctuations in
raw material and fuel prices - The margins of the company are
largely affected by raw material and fuel price fluctuations. Any
adverse movement in the prices of raw materials and fuel could
have an adverse impact on the company's margins, considering its
limited ability to pass on the price hike owing to the high
competitive intensity. The price fluctuations also impact the
realisations of the company.
Nageshwari Ceramic Private Limited was established as a private
limited company in November 2013 by Mr. Mahendra Jivani along
with his family. The company manufactures digitally printed
ceramic wall tiles since April 2015; however, actual production
was streamline in July 2015. The manufacturing unit is located at
Morbi, Gujarat, and it has an installed production capacity of
20,00,000 boxes of ceramic wall tiles per annum in three sizes
12"X12", 12"X18" and 12"X24". The company is managed by Mr.
Mahendra Jivani and Mr. Nilesh Sinojiya.
In FY2017, the company reported a net profit of INR0.12 crore on
an operating income of INR13.85 crore, as compared to a net loss
of INR0.28 crore on an operating income of INR8.88 crore in the
previous year.
NALARI FERRO: ICRA Moves B+ Rating to Not Cooperating Category
--------------------------------------------------------------
ICRA has moved the rating for the INR17.00 crore bank facilities
of Nalari Ferro Alloys Pvt Ltd to the 'Issuer Not Cooperating'
category. The rating is now denoted as: "[ICRA]B+
(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based limits 8.95 [ICRA]B+ (Stable) ISSUER
NOT CO-OPERATING; Rating
moved to the 'Issuer Not
Cooperating' category
Non Fund-based limits 7.50 [ICRA]A4 ISSUER NOT CO-
OPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Untied Limits 0.55 [ICRA]B+ (Stable)/[ICRA]A4
ISSUER NOT CO-OPERATING;
Rating moved to the 'Issuer
Not Cooperating' category
Rationale
The rating is based on no updated information on the entity's
performance since the time it was last rated in February 26,
2016. The lenders, investors and other market participants are
thus advised to exercise appropriate caution while using this
rating as the rating does not adequately reflect the credit risk
profile of the entity. The entity's credit profile may have
changed since the time it was last reviewed by ICRA; however, in
the absence of requisite information, ICRA is unable to take a
definitive rating action.
As part of its process and in accordance with its rating
agreement with Nalari Ferro Alloys Pvt Ltd, ICRA has been trying
to seek information from the company so as to monitor its
performance, but despite repeated requests by ICRA, the company's
management has remained non-cooperative. In the absence of
requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key Rating Drivers
Credit Strength
Long experience of the promoters in ferro alloy business -
Presence of experienced promoters with established track record
in manufacturing of ferro alloy business, which strengthens
business prospects for the company.
Incorporated in February 2001, NFAPL is engaged in manufacturing
ferro silicon with two 7.5 MVA submerged electric arc furnaces
(EAF), translating into a combined installed capacity of 11,200
TPA. The manufacturing facility is located at Byrnihat,
Meghalaya.
OMEXO TILES: ICRA Reaffirms B+ Rating on INR4.05cr Term Loan
------------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]B+ to the
INR2.00 crore fund-based cash credit facility and the INR4.05
crore term loan facility of Omexo Tiles. ICRA has also re-
affirmed the short-term rating of [ICRA]A4 to the INR0.75 crore
non-fund based bank guarantee facility of OT. The outlook on the
long-term rating is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Cash
Credit 2.00 [ICRA]B+ (Stable); Re-affirmed
Fund-based-Term Loan 4.05 [ICRA]B+ (Stable); Re-affirmed
Non-fund based-
Bank Guarantee 0.75 [ICRA]A4; Re-affirmed
Rationale
The ratings continue to favourably factor in the extensive
experience of the promoters in the ceramics business as well as
the firm's proximity to raw material sources because of its
presence in Morbi (Gujarat).
However, the ratings are constrained by the firm's modest scale
of operations and decline in revenues in FY2017 because of its
reduced sales volume and declined sales realisation. The ratings
also factor in the high working capital intensity owing to
elongated receivables as on March 31, 2017. Furthermore, the
ratings take into account the highly fragmented nature of the
tiles industry, which results in intense competitive pressures.
The cyclical nature of the construction sector, which is the main
end-user sector, and the exposure of the firm's profitability to
volatility in raw material and natural gas prices are other
credit concerns. ICRA also notes that OT is a partnership firm
and any significant withdrawals from the capital account could
adversely impact its net-worth and thereby the credit profile.
Key rating drivers
Credit strengths
* Experience of promoters in the ceramic industry - The partners
have significant experience in the ceramic business and the firm
established its presence in the market after its establishment in
FY2013.
* Location advantage from presence in largest ceramic cluster -
The firm's manufacturing facility is located in Morbi (Gujarat),
which is the largest ceramic cluster of India, benefitting the
firm by providing access to raw material sources and ease in
availability of labor.
Credit weaknesses
* Modest scale of operations - The firm operates at modest scale
of operations with significant decline of 20.9% in revenue during
FY2017, which stood at INR12.57-crore, owing to demand slowdown
in wall tiles segment of ceramic industry.
* High working capital intensity due to elongated receivables -
Working capital intensity of the firm remained stretched at 42.8%
as on March 31, 2017 because of elongated receivables. Customers
are making delayed payments to OT because of sluggish market
conditions.
* Intense competition given the limited entry barriers - The firm
faces stiff competition from other organised and unorganised
players in the industry, which limits its pricing flexibility and
bargaining power with customers, putting pressure on its margins.
There are low entry barriers for new entrants that further
augment the competition.
* Vulnerability of profitability to fluctuation in raw material
and gas prices; exposure to cyclicality in real estate industry -
Raw material and fuel are the two major cost components in the
ceramic tiles business determining the cost competitiveness of
the operations. Thus, its margins are exposed to fluctuation in
raw material and natural gas prices. The cash flows are also
susceptible to cyclicality in the real estate industry, which is
the main consuming sector.
* Net-worth is exposed to the withdrawal of capital by the
partners - OT being a partnership firm is exposed to the
reduction in net-worth due to of any substantial withdrawal by
the partners that may affect its capital structure.
Incorporated in January 2012, OT is involved in manufacturing
digitally printed glazed wall tiles. The manufacturing facility
is located in Morbi, Gujarat. The plant has an installed
manufacturing capacity of 26,300 metric tonne of wall tiles per
annum. It currently manufactures wall tiles of sizes 12" x 12"
and 12" x 18". The firm enjoys a presence in the domestic market
across India.
Omexo Tiles (OT) underwent change in partnership with effect from
April 20, 2017. Out of its total 18 partners, 13 retired and nine
new partners were admitted, totaling to its 14 partners at
present. It is presently managed and controlled by Mr. Amit
Adroja, Mrs. Snehal Adroja, Mr. Jaysukh Detroja, Mr. Mansukh
Barasara and Mr. Kishor Koringa, along with their families.
In FY2017, the firm reported profit after tax of INR0.52 crore on
an operating income of INR12.57 crore, as compared to a profit
after tax of INR1.97 crore on an operating income of INR15.89
crore in FY2016.
PAEDIA HEALTH: ICRA Withdraws B- Rating on INR11.95cr Loan
----------------------------------------------------------
ICRA has withdrawn the long term rating of [ICRA]B- assigned to
the INR17.50 crore bank limits of Paedia Health Pvt Ltd (PHPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based limits 11.95 [ICRA]B- Withdrawn
Untied Limits 5.55 [ICRA]B- Withdrawn
Rationale
The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension and as requested by the company.
Incorporated in 2005, PHPL currently operates a 125-bedded multi
speciality hospital, 'Sparsh Multispeciality Hospital', which
commenced operations in April 2014. The hospital is located in
Bhilai, Chhattisgarh. Prior to this, the company managed a 30-
bedded child super speciality hospital - Sparsh Children Hospital
since 2007. However, the operations of SCH were discontinued from
January 2014.
PARTH COLD: CRISIL Reaffirms 'B' Rating on INR4.75MM Term Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Parth Cold
Storage - Banaskantha (PCS) for obtaining information through
letters and emails dated April 18, 2017 and July 12, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit .25 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Pledge Loan 2.50 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 4.75 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Parth Cold Storage -
Banaskantha. 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 Parth Cold Storage -
Banaskantha is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with 'CRISIL
B' rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL
B/Stable'.
PCS is a cold storage chain providing cold storage facilities for
potatoes and other vegetables. It will begin operations in March
2016 and will be managed by Mr. Jiteshkumar Chaudhary and his
friends of Palanpur, Banaskatha (Gujarat).
PBN CONSTRUCTIONS: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with PBN Constructions
Private Limited (PBN) for obtaining information through letters
and emails dated February 15, 2017, and July 18, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 7.52 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 3.00 CRISIL B+/Stable (Issuer
Not Cooperating; Rating
Reaffirmed)
Proposed Cash .48 CRISIL B+/Stable (Issuer
Credit Limit 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 PBN Constructions 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 PBN Constructions Private
Limited is consistent with 'Scenario 3' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BBB rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL
B+/Stable/CRISIL A4'.
Incorporated in 2007 and promoted by Mr. Anil Kumar Agarwala, PBN
undertakes civil construction projects mainly related to
construction of buildings and warehouses for state and central
government bodies such as the Government of West Bengal, Public
Works Department, and Public Health Engineering department. The
company is based at Siliguri, West Bengal.
PSK DEVELOPERS: Ind-Ra Moves B+ Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated PSK Developers
Pvt Ltd's (PSK) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is:
-- INR1,850 mil. Term loan migrated to non-cooperating category
with IND B+(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 5
July 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2004, Mumbai-based PSK is engaged in residential
real estate redevelopment. Its ongoing project, Fashion Index, is
a commercial as well as residential redevelopment located in
Dadar, Mumbai. The project comprises 268 residential units (to be
handed over to the current tenants) and 333 commercial units
(developer's share).
RADIANT ENERGY: ICRA Assigns B Rating to INR6.0cr Cash Loan
-----------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR8.25
crore fund-based facilities and a short-term rating of [ICRA]A4
to the INR4.00 crore non-fund based bank facilities of Radiant
Energy Solutions Private Limited. The outlook on the long-term
rating is Stable. ICRA has also assigned a short-term rating of
[ICRA]A4 to the Foreign Line of Credit limit of INR3.50 crore, a
sub-limit of the cash credit facility of RESPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term Loan 2.25 [ICRA]B(Stable); Assigned
Fund Based-Cash Credit 6.00 [ICRA]B(Stable); Assigned
Non Fund Based-Bank
Guarantee 4.00 [ICRA]A4; Assigned
Non Fund Based-FLC (3.50) [ICRA]A4; Assigned
Rationale
The assigned ratings favourably factor in the experience of the
promoters in the energy industry through other group concerns.
The ratings, however, are constrained by the small scale of
operation of RESPL in the first full year of operations. The
ratings also consider the weak financial profile of the company
characterised by low profitability, leveraged capital structure
and modest coverage indicators. ICRA notes the highly competitive
nature of the insulator industry with low entry barriers and many
large and established players in the industry. The exposure of
the company's profitability to volatility in raw material prices
and cheap Chinese imports are other rating concerns. The ratings
further notes RESPL's working capital intensive nature of
operations with elevated inventory level owing to the pile up of
different variants of products in its initial year of operations.
Key rating drivers
Credit strengths
* Extensive experiences as well as track record of promoters
through group concerns in the energy industry - RESPL is promoted
by the Mr. Arvind Kalaria and Mrs. Archana Patel along with her
husband, Mr. Atul Patel. The promoters have an extensive
experience in the energy industry
* vide their well established presence through the group concern,
Radiant Ceramic Private Limited, which is engaged in
manufacturing ceramic glaze tiles, insulators and allied
activities.
Credit weaknesses
* Small scale of operations - RESPL commenced commercial
production of composite polymeric insulator from April 2016 and
of single phase energy meter from August 2017. It reported an
operating income of INR5.80 crore in its first full year of
operations.
* Financial profile characterised by low profitability, leveraged
capital structure and modest coverage indicators - RESPL's
financial profile remained weak as reflected by net profit margin
of 0.8% , gearing of 1.7 times, TD/OPBDITA of 1.9 times and
NCA/TD of 9% for FY2017.
* Insulators segment is highly competitive with bigger and
established players and low entry barriers - RESPL is a new
entrant in the insulator segment; and faces stiff competition
from long established players in the field. The low entry
barriers and numerous small scale players in the unorganised
market add to further competition.
* Profitability remains susceptible to raw material price
fluctuations and cheap Chinese imports - RESPL has little control
over prices of key inputs such as SE 1200 roving, resin,
hardener, silicon rubber, hardware fittings, etc., used in the
manufacturing process, so its ability to pass on the volatility
of its raw material prices to its end-customers remains critical.
Further, its profitability also remains susceptible to cheap
Chinese import of insulators.
* High working capital intensive business with elevated inventory
level resulting in stretched liquidity - The Company's product
portfolio consists of a wide variety of insulators with different
dimension and sizes. Moreover, the inventory level of the company
remained high at 347 days in FY2017, its initial year of
operations, resulting in high working capital intensity with
NWC/OI of 84% at the year-end.
Incorporated on February 23, 2015, Radiant Energy Solutions
Private Limited (RESPL) is engaged in manufacturing fibre glass
rod (FRP), silicon rubber compound, composite polymeric insulator
and single phase energy meter. It has an installed manufacturing
capacity of 4,000 pieces per day of composite polymeric
insulators and 3,000 pieces per day of energy metres. The company
commenced commercial production of composite polymeric insulators
from April 2016, while that of energy metres began from August
2017.
RESPL is promoted by the Mr. Arvind Kalaria and Mrs. Archana
Patel, along with her husband, Mr. Atul Patel. They have an
extensive experience in the energy industry through the well
established presence of their group concern, Radiant Ceramic
Private Limited, which is engaged in manufacturing ceramic glaze
tiles, insulators and in allied activities.
In FY2017, the company reported a net profit of INR0.04 crore on
an operating income of INR5.8 crore.
RAJAPUR MINERALS: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rajapur Minerals
(RM) a Long-Term Issuer Rating of 'IND B+'. The Outlook is
Stable. The instrument-wise rating actions are:
-- INR21 mil. Long-term loans due on January 2020 assigned with
IND B+/ Stable rating; and
-- INR29 mil. Fund-based working capital limits assigned with
IND B+/Stable/IND A4 rating.
KEY RATING DRIVERS
The ratings reflect RM's small scale of operations and moderate
credit metrics. According to provisional financials for FY17,
revenue was INR132 million (FY16: INR36 million). Revenue growth
was driven by the execution of higher number of order due to the
lifting of the Supreme Court of India's ban on iron ore
extraction in most parts of India in April 2014. In FY17, net
leverage (total adjusted net debt/operating EBITDAR) was 4.6x
(FY16: 4.6x) and interest coverage (operating EBITDA/gross
interest expense) was 3.0x (FY15: 3.9x). The deterioration in
interest coverage was due to an increase in interest expenses on
term loans.
The ratings also reflect RM's volatile profitability margin,
which stood at 17.1%-54.4% over FY13-FY17, due to fluctuations in
order margins. The firm is focusing on orders with margins in the
range of 25%-30%. Moreover, the ratings are constrained by the
proprietorship nature of the business.
The ratings, however, are supported by RM's moderate liquidity,
indicated by an average fund-based facility utilisation of 89.3%
for the 12 months ended July 2017, and moderate short-term
revenue visibility, indicated by a pending work order book of an
INR293 million iron ore excavation project and an INR20 million
white stone crushing project as of June 2017 that is likely to be
executed before 1QFY19.
The ratings are also supported by the proprietor's experience of
two decades in iron ore mining.
RATING SENSITIVITIES
Negative: Deterioration in the scale of operations, with a fall
in profitability margin, leading to deterioration in credit
metrics would be negative for the ratings.
Positive: An increase in the scale of operations while
maintaining profitability margin at the current level leading to
an improvement in credit metrics would be positive for the
ratings.
COMPANY PROFILE
Incorporated in 2002, RM is promoted and managed by Mr Satish
Rajapur. RM is engaged in the extracting, crushing, screening and
transportation of iron ore by using advance technology.
SAMBANDAM SIVA: CRISIL Reaffirms B+ Rating on INR9.8MM Cash Loan
----------------------------------------------------------------
CRISIL has been consistently following up with Sambandam Siva
Textiles Private Limited (SSTPL) for obtaining information
through letters and emails dated February 6, 2017 and March 6,
2017 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 9.8 CRISIL B+/Stable (Issuer
Not Cooperating; Rating
Reaffirmed)
Corporate Loan 7.5 CRISIL B+/Stable (Issuer
Not Cooperating; Rating
Reaffirmed)
Letter of Credit 4.35 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 3.54 CRISIL B+/Stable (Issuer
Bank Loan Facility Not Cooperating; Rating
Reaffirmed)
Working Capital 6.40 CRISIL B+/Stable (Issuer
Demand Loan 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 Sambandam Siva Textiles
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 Sambandam Siva
Textiles Private Limited is consistent with 'Scenario 2' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL BB' category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL
B+/Stable/CRISIL A4'.
SSTPL, incorporated in 1994 and based in Salem (Tamil Nadu),
manufactures cotton yarn. It is a part of the Sambandam group,
which has been operational for three decades.
SHIV SHAKTI: Ind-Ra Migrates BB+ Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shiv Shakti
Wahan Private Limited's (SSWPL) 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:
-- INR120 mil. migrated to non-cooperating category with IND
BB+(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 6, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SSWPL commenced operations on 17 September 2013, in Darbhanga
district, Bihar, as an authorised dealer of Mahindra & Mahindra
Limited. The firm is managed by its four directors, Mr. Suman
Kumar, Mr. Saket Kumar, Mr. Sitish Kumar and Mr. Mithlesh Kumar.
SHREE RAJ: ICRA Moves 'D' Rating to Not Cooperating Category
------------------------------------------------------------
ICRA has moved the ratings for the INR30.00-crore bank facilities
of Shree Raj Mahal Diamonds Private Limited (SRMD) to the 'Issuer
Not Cooperating' category. The rating is now denoted as:
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund- 30.00 [ICRA]D; ISSUER NOT
based limits COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Short-term non- (20.00) [ICRA]D; ISSUER NOT
fund based limits COOPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Rationale
The ratings are based on no updated information on the company's
performance since the time it was last rated in March 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the
time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with Shree Raj Mahal Diamonds Private Limited, ICRA has
been trying to seek information from the entity so as to monitor
its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. In the absence
of requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key rating drivers
Credit strengths
* Experience of promoters - SRMD is a part of the Delhi based
jewellery group involved in the manufacturing, wholesale and
retail sales of gold and diamond. Mr. Pradeep Kumar Goel and his
brothers have experience of more than a decade in handling the
group operations smoothly in the jewellery industry.
Credit weaknesses
* Delays in debt servicing due to stretched liquidity - The
slowdown in the demand for SRMD jewellery products resulted in
blockage of funds, leading to stretched liquidity and delays in
debt servicing.
* High geographical concentration risk - The company faces high
geographical concentration risk with majority of the customers
based in Delhi.
* Intense competition, given the low complexity of work involved
- The company faces stiff competition from organised as well as
unorganised players in the gems and jewellery industry, which
limits its pricing flexibility and bargaining power with
customers, thereby putting pressure on its revenues and margins.
* Vulnerability of profitability to any adverse fluctuation in
gold prices - The company is not completely hedging its position
in the gold and hence, any sustainable fall in gold prices may
affect the profitability of the company to a large extent.
Incorporated in 2010, SRMD is a part of Delhi based Shree Raj
Mahal Group, which is involved in the manufacturing, wholesale
and retail sales of gold and diamond. SRMD is a closely held
company promoted by Mr. Pradeep Kumar Goel and Mr. Ashok Kumar
Goel. The group has presence largely in gold jewellery and its
customers are primarily wholesalers and retailers based in New
Delhi.
SHRI SHANTI: Ind-Ra Migrates BB- Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shri Shanti
Solvex Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the
agency's website. The instrument-wise rating actions are:
-- INR61.94 mil. Term loan migrated to non-cooperating category
with IND BB-(ISSUER NOT COOPERATING) rating; and
-- INR100.0 mil. Fund-based working capital limit migrated to
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Aug. 29, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shri Shanti Solvex was incorporated during August 2013 to operate
a solvent extraction plant in Morena, Madhya Pradesh.
SHRISTI COTSPINN: Ind-Ra Moves BB Rating to Not Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shristi Cotspinn
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB(ISSUER NOT COOPERATING)'on the agency's
website. The instrument-wise rating actions are:
-- INR160 mil. Fund-based limit migrated to non-cooperating
category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER
NOT COOPERATING) rating; and
-- INR107.6 mil. Term loans migrated to non-cooperating category
with IND BB(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 8
July 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Shristi Cotspinn Private Limited is a spinning unit, located
close to Coimbatore. It is involved in the spinning of cotton
yarn and production of fabrics. The unit has an installed
capacity of 16,800 spindles and 788 rotors.
SILVER STAR: Ind-Ra Migrates B Issuer Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Silver Star
Group's (SSG) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is:
-- INR100 Proposed fund-based facilities migrated to non-
cooperating category with Provisional IND B(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 4, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2013, SSG is a Pune-based partnership firm. Its
ongoing project Silver Palm Grove consists five building with a
total of 142 saleable flats covering total saleable area of
1,69,477sf. The project is likely to be completed by December
2018.
SPICA PROJECTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Spica Projects &
Infrastructures Pvt. Ltd.'s (SPIPL) Long-Term Issuer Rating at
'IND BB'. The Outlook is Stable. The instruments-wise rating
actions are:
-- INR48.7 mil. Fund-based working capital limit affirmed with
IND BB/Stable rating;
-- INR8.3 mil. (reduced from INR20.0 mil.) Term loan due on
April 8, 2020 affirmed with IND BB/Stable rating;
-- INR150.0 mil Non-fund-based working capital limit affirmed
with IND BB/Stable/IND A4+ rating;
-- INR138.5 mil. Non-fund-based working capital limit affirmed
with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects SPIPL continued moderate profitability
and credit profile. According to provisional financials for FY17,
EBITDA margin was 8.1% (FY16: 8.0%), interest coverage (operating
EBITDA/gross interest expense) was 2.9x (3.38x) and net leverage
(total adjusted net debt/operating EBITDAR) was 0.07x (0.57x).
The marginal improvement in EBITDA margin was mainly on account
of a decrease in work execution cost (FY17: INR511.85 million;
FY16: from INR925.79 million). Interest coverage deteriorated
owing to a fall in EBITDA (FY17: INR46.43 million; FY16: INR80.96
million). Meanwhile, net leverage improved on account of a fall
in total debt (FY17: INR88.04 million; FY16: INR129.55 million).
Revenue declined to INR573.5 million in FY17 from INR1,018.24
million in FY16 on account of lower execution of orders.
The ratings continue to be constrained by a low revenue
visibility, indicated by an order book of INR388.97 million (0.7x
of FY17 revenue) as on 23 May 2017, and a high geographical
concentration risk faced by SPIPL, given almost all of its
contracts are executed in and around Jharkhand.
The ratings, however, continued to be supported by the promoters'
experience of over 30 years in executing construction contracts
for the Jharkhand government. Moreover, the ratings are supported
by a moderate liquidity position, indicated by a working capital
utilisation of 61% during the 12 months ended July 2017.
RATING SENSITIVITIES
Negative: Any deterioration in credit metrics and liquidity
profile could be negative for the ratings.
Positive: A substantial improvement in the scale of operations
while maintaining credit metrics at the current levels could be
positive for the ratings.
COMPANY PROFILE
Incorporated in 1997, SPIPL was previously a proprietorship
entity, Santosh Kumar Singh. It was reconstituted as a private
limited company under the current name in 2012. It executes road
and bridge construction contracts for the Jharkhand government.
SPIPL is managed by Mr Santosh Kumar Singh, Ms Anima Singh, Mr
Surya Prakash Singh and Mr Chandra Prakash Singh.
SREEALANKAR GOLD: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sreealankar Gold
Hub Private Limited (SAGHPL) a Long-Term Issuer Rating of 'IND
B+'. The Outlook is Stable. The instrument-wise rating action is:
-- INR250 mil. Proposed fund-based limits assigned with
Provisional IND B+/Stable rating.
The above rating is provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facilities by SAGHPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect SAGHPL's lack of operational track record as
it commenced commercial operations on 15 August 2017.
However, the ratings benefit from SAGHPL's jewellery showroom's
locational advantage as it is situated in a commercial area,
leading to high customer footfall.
The ratings are also supported by the promoter's experience of
more than three decades in the jewellery trading business,
resulting in established clientele.
RATING SENSITIVITIES
Negative: Failure to stabilise operations and achieve revenue as
projected by Ind-Ra could lead to a negative rating action.
Positive: Stability in operations and achievement of revenue as
projected by Ind-Ra could lead to a positive rating action.
COMPANY PROFILE
SAGHPL was incorporated in 2014 for setting up a jewellery
showroom in the Berhampur city of Odisha.
SRI AGARWAL: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sri Agarwal
Ispat's (SAI) 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 ratings will
now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is:
-- INR410 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Aug. 17, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SAI, a proprietorship concern, was founded by Mr Rameshwarlal
Agarwal in 2002 in Chennai. The company is the product
distributor for JSW Steel Limited ('IND AA-'/Negative). In
addition, it is engaged in the trading and processing of hot- and
cold-rolled coils, which are used in the automobile industry.
STERLING HABITATS: CRISIL Cuts Rating on INR25MM NCD to 'B(SO)'
--------------------------------------------------------------
CRISIL has downgraded its rating on the non-convertible
debentures (NCDs) of Sterling Habitats Private Limited (Sterling
Habitats) to 'CRISIL B (SO)/Negative' from 'CRISIL BB-
(SO)/Negative'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Non Convertible 25 CRISIL B(SO)/Negative
Debentures-Series I (Downgraded from
'CRISIL BB-(SO)/Negative')
Non Convertible 25 CRISIL B(SO)/Negative
Debentures-Series II (Downgraded from
'CRISIL BB-(SO)/Negative')
The downgrade reflects the increased demand risk for Villa Grande
project, resulting in heightened refinancing risk. Demand
remained subdued in fiscal 2017 following continued sales
slowdown in fiscals 2015 and 2016. Sales are expected to remain
low as the offerings are being made in the ultra-luxury segment,
in which significant demand pressure continues. The company faces
the challenge of selling the balance unsold inventory over the
next 3-4 quarters to ensure timely repayment of the rated debt,
unless the debt is refinanced. Hence, improvement in saleability
will be a key rating sensitivity factor.
The rating reflects weak project saleability, heightened
refinancing risk, and exposure to cyclicality inherent in the
real estate sector. These rating weaknesses are partially offset
by the advanced implementation stage and low funding risk in the
Villa Grande project, and the strong track record of the parent,
Sterling Developers Pvt Ltd (Sterling Developers), in real estate
development.
Analytical Approach
CRISIL has evaluated the Villa Grande project for arriving at the
project risk. The financial risk is evaluated separately based on
the NCD structure (apartment funding structure) and its cash
flows.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak project saleability
The company remains exposed to significant demand risk given the
ultra-luxury nature of the project. About 67% of the total
inventory in the Villa Grande project was sold as of June 30,
2017 (63% as of June 2016). However, sales have been
significantly impacted by continued demand slowdown, further
aggravated by demonetisation. Overall incremental sales were only
29,537 square foot (sq ft; about 10 units) between June 2016 and
June 2017.
Sterling Habitats holds 83,424 sq ft (24 units) in the project.
As per the terms of the NCDs there was a lock-in period of one
year (till September 2016), during which no sales were required
as per the terms. However, only one of the 24 units was sold till
June 30, 2017.
* Heightened refinancing risk
The NCDs mature in September 2018 (Series 1B) and June 2018
(Series 2). They will not be redeemed until all units are sold;
this could lead to default if sales and collections do not happen
well before the NCD redemption dates. Considering the low sales
velocity and the resultant large unsold inventory, refinancing
risk has increased significantly. While the company is planning
to refinance the NCDs, its ability to do so in a timely manner
remains a key monitorable.
* Exposure to cyclicality inherent in the real estate sector
The residential real estate segment continues to be under
pressure. Players have been facing headwinds for the past few
years, primarily due to weak demand and bearish consumer
sentiment. This is reflected in declining sales velocity,
pressure on prices in select cities, large unsold inventories,
and fewer project launches. Consequently, leverage and
refinancing needs have increased for developers; this has been
met through expensive funding sources, thereby adversely
impacting their credit risk profiles.
Strengths
* Low implementation and funding risk
The project is at an advanced implementation stage with all the
required approvals in place. About 85% has been completed, and
around 150 units have already been delivered till date. The NCD
proceeds were used for project construction. Given the advanced
implementation stage of the project, the balance funding
requirement is moderate, thereby mitigating any funding risk.
* Strong track record of the promoters
Sterling Developers has a track record of developing over 22 lakh
sq ft till date; this is expected to support the business risk
profile of Sterling Habitats over the medium term.
Outlook: Negative
CRISIL believes the business risk profile of Sterling Habitats
will remain constrained over the medium term by the heightened
demand risk of the Villa Grande project. The rating may be
downgraded if sales remain low, thereby adversely impacting cash
flow and exposing the company to refinancing risk. The outlook
may be revised to 'Stable' in case of better customer advances
through healthy project sales.
Sterling Habitats is a special-purpose vehicle formed by the
Bengaluru-based Sterling Developers. Sterling Developers holds
99.9% shares of the company while the balance is held by Mr
Venkat Ramani Sastri and Mr Gowri Shankar Sastri (nominees of
Sterling Developers). The company holds 83,424 sq ft in Sterling
Urban Developments Pvt Ltd's (group company of Sterling
Developers) project, Villa Grande.
About the NCDs
Sterling Habitats has raised INR50 crore by issuing NCDs [Rs 25
crore each of Series I and II (Series I is senior to Series II
NCDs; Series II NCDs listed)] through the apartment funding
structure. Repayment of these NCDs is expected to be met from
proceeds of the sale of units held by Sterling Habitats in Villa
Grande.
Terms of Series 1 NCDs have been modified and now are the same as
Series 2 NCDs. Series 1 NCDs have now been reconstituted to 1B.
As per the earlier terms, Series 1 NCDs had defined coupon and
scheduled repayments. Series 2 NCDs had no defined repayment
schedule and were to be redeemed at maturity with an internal
rate of return (IRR) of 19%. The interest on the Series I NCDs
have been serviced as per the original terms till the time of
reconstitution to Series 1B. Post revision of terms in Series 1,
both Series 1B and Series 2 NCDs will have the same terms and
will be redeemed at maturity with an IRR of 19%. The debentures
also have a corporate guarantee from Sterling Developers.
The sale of the acquired area after the lock-in period must be in
the ratio of 50:50 (investor [acquired area]: developer [balance
area]). At the end of the tenor, NCDs have a put option at 19%
IRR or developer buyback value. The latter is defined as the
value of the project's unsold units at a price defined as the
average of the last 10 units sold or last three months' average
sale price, whichever is higher, and the balance receivables from
the sold units, if any, at the end of the tenor.
SUL STEEL: CRISIL Lowers Rating on INR23MM Cash Loan to 'B'
-----------------------------------------------------------
CRISIL has been consistently following up with SUL Steel Private
Limited (SULSPL; part of the BRGD group) for obtaining
information through letters and emails dated April 12, 2017 and
July 12, 2017 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Issuer Not
Cooperating; Downgraded
from 'CRISIL A4+')
Cash Credit 23 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB/Stable')
Letter of Credit 10 CRISIL A4 (Issuer Not
Cooperating; Downgraded from
'CRISIL A4+')
Proposed Long Term 12 CRISIL B (Issuer Not
Bank Loan Facility Cooperating; Downgraded from
'CRISIL BB/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SUL Steel 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 SUL Steel Private Limited is consistent
with 'Scenario 3' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BBB' rating category or
lower. Based on the last available information, CRISIL has
downgraded the rating to 'CRISIL B/Stable/CRISIL A4'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SULSPL and BRGD Ingot Pvt Ltd (BRGD).
This is because the two companies, together referred to as the
BRGD group, are under a common management and have significant
operational and financial linkages.
SULSPL (formerly, Madhav Vyapar Pvt Ltd) is promoted by Mr.
Harimohan Beriwala and his family members. The company
manufactures thermo-mechanically-treated bars at its facility in
Paharpur, West Bengal.
In February 2010, SULSPL's promoters acquired BRGD, which
manufactures and trades in ingots. BRGD sells most of its ingots
to SULSPL.
TECHNOCAST FOUNDRY: Ind-Ra Migrates BB- Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Technocast
Foundry's (TF) 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:
-- INR130 mil. Fund-based facilities migrated to non-cooperating
category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER
NOT COOPERATING) rating; and
-- INR57.2 mil. Long-term loans migrated to non-cooperating
category with IND BB-(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Aug. 31, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2002, TF manufactures machined grey ductile iron
casting at its unit in Arasur, Coimbatore. The firm is promoted
by Mr Kamalakannan and his family members.
TRIJAL ENTERPRISE: Ind-Ra Assigns 'BB'/Stable Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Trijal
Enterprise Private Limited (TEPL) a Long-Term Issuer Rating of
'IND BB'. The Outlook is Stable. The instrument-wise rating
actions are:
-- INR300 mil. Proposed fund-based limits assigned with
Provisional IND BB/Stable rating; and
-- INR500 mil. Proposed non-fund-based limits assigned with
Provisional IND A4+ rating.
The above ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facilities by TEPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect TEPL's nascent stage of operations as it
began commercial operations in September 2016. The company is
also setting up a jewellery manufacturing unit and a trading
branch in Vishakhapatnam; the construction is expected to
complete by end-September 2017.
TEPL's FY17 financials indicate moderate credit profile with
revenue of INR267 million, interest coverage of 5.0x, net
leverage of 0.8x and operating EBITDA margins of 4.0%. Ind-Ra
expects the credit metrics to deteriorate over FY18-FY19 owing to
a rise in financial costs resulting from debt availed to fund its
ongoing capex.
RATING SENSITIVITIES
Positive: An improvement in the scale of operations and credit
metrics will be positive for the ratings.
Negative: A sustained deterioration in the credit metrics will be
negative for the ratings.
COMPANY PROFILE
TEPL is engaged in manufacturing and trading of gold and silver
jewellery. Its head office is located in Bhubaneshwar, Odisha.
The company is managed by Rajesh Polaki, Tirumula Polaki and
Chetan Kumar Patro.
UNITY FABTEXT: CRISIL Lowers Rating on INR6.0MM Term Loan to 'D'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long term bank facilities
of Unity Fabtext Industries Private Limited (UFIPL) to 'CRISIL D'
from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1.5 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of Credit 0.6 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 1.9 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 6.0 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating action follows instances of delay in repayment of term
loans by UFIPL and continuous overdrawal in cash credit account
for more than 30 days on account of stretched liquidity.
Analytical Approach
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of UFIPL and Unity Industries (UI). This
is because the two entities, together referred to as the Unity
group, have strong financial and operational linkages, and are
under a common management.
Key Rating Drivers & Detailed Description
* Delay in repayment of term loan and overdrawn bank limit:
Stretched liquidity has resulted in delay in repayment of term
loans and continuous overdrawl in bank limits for more than 30
days.
Weakness
* Weak financial risk profile: The financial risk profile has
weakened due to losses incurred in fiscal 2016 leading to
negative net worth.
* Modest scale of operations: With revenues of 29 crore for
fiscal 2016, group is a modest player in the highly fragmented
industry. Modest size limits the group's ability negotiate with
the customers and suppliers.
Strength
* Extensive experience of promoters and established relations
with customers: The promoters have over 30 years of industry
experience and have established healthy relations with customers,
which should benefit business risk profile over the medium term.
The Unity group, promoted by Mr Jagdish Karande, manufactures
non-woven products such as designer carpets, shoe liners,
industrial filters, and geo textiles; it also manufactures seat
covers, trim pads, moulded headliners, moulded floor mats, and
sun visors. UI was established in 1985, and UFIPL was
incorporated in 2012.
USHDEV INTERNATIONAL: Ind-Ra Affirms 'D' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Ushdev
International Ltd.'s (UIL) Long-Term Issuer Rating at 'IND D'.
The instrument-wise rating actions are:
-- INR500 mil. Term loans (Long-term) due on 2019-2021 affirmed
with IND D rating;
-- INR5,000 mil. Fund-based limits (Long-term) affirmed with IND
D rating;
-- INR20,000 mil. Non-fund-based limits (Short-term) affirmed
with IND D rating; and
-- INR2,000 mil. Proposed term loans (Long-term) withdrawn-
(issuer is no longer proceeding with the instrument as
envisaged) with WD rating.
KEY RATING DRIVERS
The affirmation reflects UIL's continued delays in debt servicing
since the last review, as informed by the management. The delays
have mainly been on account of delays in receivable collections
and the consequent liquidity crunch.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could lead to a positive rating action.
COMPANY PROFILE
Founded in 1994, UIL is a metal trading company which mainly
trades nickel, ferrous flat products and long products.
VASUPUJYA FILAMENTS: CRISIL Lowers Rating on INR13.90M Loan to B
----------------------------------------------------------------
CRISIL has been consistently following up with Vasupujya
Filaments (VF; part of the Dodhia group) for obtaining
information through letters and emails dated April 10, 2017 and
May 8, 2017 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.1 CRISIL A4 (Issuer Not
Cooperating; Downgraded
from 'CRISIL A4+')
Cash Credit 2.9 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Foreign Letter of 1.65 CRISIL B/Stable (Issuer Not
Credit Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Long Term Loan 3.71 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Proposed Long Term 7.74 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded
from 'CRISIL BB+/Stable')
Term Loan 13.90 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL BB+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Vasupujya Filaments. 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 Vasupujya Filaments is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL B' category or lower. Based on the
last available information, CRISIL has downgraded the rating at
'CRISIL B/Stable/CRISIL A4'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of VF and Dodhia Synthetics Limited
(DSL). This is because both these entities, together referred to
as the Dodhia group, are in the same line of business, have
common promoters, and have operational linkages and fungible
cashflows.
Set up in 1989, DSL, promoted by the Dodhia family, manufactures
polyester dyed yarn and dyed textured yarns. The company has
three manufacturing facilities in Maharashtra.
VF manufactures pre-dyed textured yarn by using the air textured
yarn technology. The firm's facility is situated in Silvassa and
its entire sales are in the domestic market.
VIRENDRA KUMAR: ICRA Moves B+ Rating to Not Cooperating Category
----------------------------------------------------------------
ICRA has moved the rating for the INR6.50 crore bank facilities
of Virendra Kumar Singh to the 'Issuer Not Cooperating' category.
The rating is now denoted as: "[ICRA]B+ (Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based limits 4.00 [ICRA]B+ (Stable); ISSUER NOT
CO-OPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Non Fund-based limits 2.00 [ICRA]B+ (Stable); ISSUER NOT
CO-OPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Untied Limits 0.50 [ICRA]B+ (Stable); ISSUER NOT
CO-OPERATING; Rating moved
to the 'Issuer Not
Cooperating' category
Rationale
The rating is based on no updated information on the entity's
performance since the time it was last rated in February 26,
2016. The lenders, investors and other market participants are
thus advised to exercise appropriate caution while using this
rating as the rating does not adequately reflect the credit risk
profile of the entity. The entity's credit profile may have
changed since the time it was last reviewed by ICRA; however, in
the absence of requisite information, ICRA is unable to take a
definitive rating action.
As part of its process and in accordance with its rating
agreement with Virendra Kumar Singh, ICRA has been trying to seek
information from the company so as to monitor its performance,
but despite repeated requests by ICRA, the company's management
has remained non-cooperative. In the absence of requisite
information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Key Rating Drivers
Credit Strength
Long experience of the promoters in civil construction business -
Presence of experienced promoters with established track record
of more than four decades in the field of civil construction,
which strengthens business prospects for the firm
Credit Challenge
Highly competitive business environment - The rating also take
into account the highly competitive business environment,
characterized by the presence of a large number of players along
with a tender based contract award system, both of which keep
profitability under check
Established in 1972 as a proprietorship firm, VKS is primarily
engaged in the civil construction business. VKS's core area of
operation includes construction of roads, dams and canals. The
firm's operations are limited to the state of Chhattisgarh, with
the firm executing contracts for various Government and Semi-
Government agencies.
=========
M A C A U
=========
WYNN MACAU: S&P Rates New $1.35BB Senior Unsecured Notes 'B'
------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to Wynn
Macau Ltd.'s proposed aggregate $1.35 billion senior unsecured
notes due 2024 and 2027. Wynn Macau will use proceeds from the
new senior notes, along with cash on the balance sheet, to repay
its existing 5.25% senior notes and to pay the tender premium,
fees, and expenses. The transaction will be leverage neutral.
S&P said, "We rate the proposed senior notes two notches lower
than the corporate credit rating on Wynn Macau because Wynn
Macau's priority liabilities as a percentage of total assets
exceed 30%. In addition, the senior notes are structurally
subordinated to Wynn Macau's senior secured credit facilities
because the borrower under the credit facilities is closer to the
company's casino assets.
"We have applied our general notching criteria to rate Wynn
Macau's credit facilities and notes in lieu of assigning recovery
ratings to them because we do not assign recovery ratings to debt
issued in Macau. Macau is a jurisdiction for which we have not
published an insolvency report and have not ranked because, to
date, there is limited historical precedent for a large-scale
bankruptcy filing of a foreign-owned entity in Macau. The
jurisdiction is a special administrative region of the People's
Republic of China. Furthermore, even if lenders have a good claim
with a registerable interest in the real estate, we believe there
is significant uncertainty surrounding the application of the
insolvency process and the lenders' ability to realize asset
value in this jurisdiction."
RATINGS LIST
Wynn Resorts Ltd.
Wynn Macau Ltd.
Corporate Credit Rating BB-/Stable/--
New Rating
Wynn Macau Ltd.
$1.35 billion senior unsecured notes
Due 2024 B
Due 2027 B
====================
S O U T H K O R E A
====================
HANJIN INTERNATIONAL: S&P Assigns 'B-' CCR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings said that it assigned its 'B-' long-term
corporate credit rating to Hanjin International Corp. (HIC), a
U.S.-based wholly owned subsidiary of Korean Air Lines Co. Ltd.
(KAL). The outlook is stable.
S&P Said, "At the same time, we assigned our 'B+' issue rating to
HIC's proposed US$600 million senior secured first-lien term loan
due 2020, which is guaranteed by KAL. The recovery rating is '1',
indicating our expectation of very high (90%-100%, rounded
estimate: 95%) recovery in the event of a payment default. The
issue rating is subject to our review of the final term loan
documentation."
The rating on HIC reflects uncertainty in the company's operating
performance over the next one to two years and the likelihood of
support from KAL group when HIC faces a distressed scenario.
S&P said, "Given HIC's limited track record and asset
concentration as a new single-asset entity, we believe there is
some uncertainty related to stabilization of its performance.
Also, we see risk in HIC's capital structure with highly
leveraged credit metrics and concentrated debt maturity. However,
we believe the group will provide support to HIC if needed, given
the company's importance to the group's strategy and the group's
guarantee provisions."
WGC is located in the financial district of Los Angeles and is
the tallest building in western United States, with 73 floors and
a height of 1,100 feet. The majority of the floors are occupied
by InterContinental Hotel, with 890 rooms, with another 17 floors
for office rental, and two floors for retail. The hotel is
targeting Los Angeles' growing visitor numbers and convention
demand after the expansion of the LA Convention Center; the
convention center's expansion is currently under discussion.
Other than WGC, HIC only has a non-material flight crew-leasing
business.
S&P said, "Our assessment of HIC's stand-alone credit profile
(SACP) as 'ccc+' reflects the company's high leverage and
uncertainties in its operating performance. The company started
its operations in June 2017 and we expect operations to stabilize
over the next two to three years. Also, HIC's single-asset
business model makes it vulnerable to economic cycles and event
risk. We expect the company to record operating losses in 2017
and 2018, mostly due to lower occupancy rates at the early
operation stage and rent-free periods for its office space.
However, we expect operating profit in 2019, with improving
performances in both the hotel business and office-space rental."
In addition, HIC's high leverage exposes it to some liquidity
pressure and refinancing risk if economic conditions are
unfavorable. The company has sizable debt of more than US$800
million and limited cash flow generation over the next two years.
In S&P's view, a more sustainable capital structure would require
a materially better operating and financial performance, which
looks less likely over the next two years.
S&P said, "Still, we believe HIC will likely receive financial
support from the KAL group in the event of a financial distress.
As a result, we apply one notch uplift on the company's SACP to
derive the corporate credit rating.
"We assess the parent KAL group's business risk profile as fair,
mainly reflecting its good profitability and well-established
position in the airline industry. The group's exposure to high
industry volatility tempers these strengths. We assess the
group's financial risk profile as highly leveraged reflecting its
significant debts and ongoing capital investments."
S&P considers HIC as a moderately strategic subsidiary of KAL
group, based on the following factors:
-- Given KAL's substantial investment in HIC, S&P believes the
group will support HIC in case it falls into financial
difficulty. This is evident from the group's guarantee on
HIC's debts and tight control over the entity.
-- S&P believes HIC is unlikely to be sold in the near term. It
recently completed the construction of the WGC and the
company's operations are in line with the group's strategy to
diversify into hotel and property operations.
-- S&P believes the hotel business is important, though not
integral, to the group's strategy, and complements its
airline business. Apart from WGC, the group operates four
more hotels in Korea and outside, and has been operating
hotels since 1974.
S&P said, "We may lower the rating if we revise downward the SACP
for HIC because of operating performance in its hotel and
property management businesses being much weaker than our
expectation. Weaker office rentals, hotel room rates, and
improvement in occupancy rates than we anticipate would indicate
such a case. We may also lower the rating if HIC faces
significant liquidity pressure, or if we see narrowing covenant
headroom due to declining property value.
"The ratings could also come under pressure if we lower KAL's
group credit profile, potentially due to heightening liquidity
pressure or more aggressive financial policies, or if HIC's
relationship with KAL weakens significantly.
"We see limited upside rating potential over the next 12 months.
We may raise the rating if both HIC's SACP and KAL group's credit
profile improve at the same time.
"We could raise the group's credit profile if KAL generates
strong operating cash flows and significantly reduces its debt
with prudent financial policies."
KUMHO TIRE: Doublestar Agrees to Cancel Deal to Buy Tiremaker
-------------------------------------------------------------
Yonhap News Agency reports that China's Qingdao Doublestar has
sent a copy of legal documents to the creditors of Kumho Tire,
saying it agrees to cancel a deal to buy a controlling stake in
the South Korean tiremaker, an official at a key creditor bank
said on Sept. 12.
According to the report, the official at the state-run Korea
Development Bank (KDB) said the bank requested Doublestar send
the original documents by Sept. 13 to review whether they are
legally valid.
If the validity of the documents is confirmed, KDB will likely
announce a formal cancellation of the deal to sell Kumho Tire to
Doublestar on Sept. 13, the KDB official said on the condition of
anonymity, Yonhap relates.
According to Yonhap, Doublestar signed the KRW955 billion
(US$845.4 million) contract with creditors in March to buy a
42.01 percent stake in Kumho Tire.
Yonhap relates that after months of a bitter dispute over the use
of Kumho Tire's brand, the Chinese company submitted documents in
early August for approval from the South Korean government in
what appeared to be the final step in completing the acquisition.
However, Doublestar demanded the creditors cut the price by 16%
to KRW800 billion, adding a new twist to the Chinese firm's bid
to acquire Kumho Tire, the report says.
Last week, Kumho Tire's creditors decided to reject Doublestar's
demand to cut the price, according to Yonhap.
Besides the price, the creditors and Doublestar have remained far
apart on other issues, including job security for Kumho Tire
employees, the report adds.
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.
*********
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
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268.
*** End of Transmission ***