/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171025.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, October 25, 2017, Vol. 20, No. 212 Headlines A U S T R A L I A A & T COTTON: Second Creditors' Meeting Set for Nov. 2 BLUESTONE CONSTRUCTIONS: Creditors Asked for More Cash DARWIN LINEHAUL: First Creditors' Meeting Set for Oct. 31 MAKIN & LUBY: Second Creditors' Meeting Set for Oct. 31 MEDIA MOVERS: Second Creditors' Meeting Set for Oct. 31 TIN SHED: Clifton Hall Appointed as Liquidator C H I N A CHINA GRAND: Proposed Issue No Impact on B1 CFR, Moody's Says ZHONGRONG XINDA: Fitch Puts Final BB Rating to US$500MM Sr. Notes I N D I A ABHISHEK AUTOMOTIVES: ICRA Moves B Rating to Not Cooperating APL MACHINERY: CRISIL Assigns 'B' Rating to INR5MM Cash Loan ARJUN TECHNOLOGIES: CRISIL Reaffirms D Rating on INR10MM Loan BLESSINGS RESORTS: CRISIL Reaffirms 'D' Rating on INR29MM Loan CHANDULAL CHANDRAKAR: CRISIL Cuts Rating on INR130MM Loan to D CHHATRAPATI SAMBHAJI: ICRA Moves B+ Rating to Not Cooperating DESIGNMATE INDIA: CRISIL Reaffirms 'D' Rating on INR11MM Loan DEV BHOOMI: ICRA Moves 'B' Rating to Not Cooperating Category ELECTROSTEEL STEELS: Srei Infra Expresses Interest to Buy Firm HARSHAMITRA ONCOLOGY: CRISIL Assigns 'B' Rating to INR6.58MM Loan INDO SILICON: CRISIL Reaffirms 'B' Rating on INR6.5MM Cash Loan INDRA TUBES: CRISIL Reaffirms B+ Rating on INR12.5MM Cash Loan JSRM FOODS: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan KOMPLETE SUPPLY: CRISIL Reaffirms B+ Rating on INR6MM Loan KSC EDUCATIONAL: ICRA Reaffirms B+ Rating on INR150cr Loan KSHITIJA INFRA: ICRA Moves B Rating to Not Cooperating Category MAA KALI: CRISIL Raises Rating on INR24.65MM Term Loan From D MBL INFRA: Promoters May Infuse INR50,100cr to Avoid Liquidation MDA MINERAL: ICRA Moves C+ Rating to Not Cooperating Category MICRO LOGISTICS: ICRA Reaffirms B+ Rating on INR7cr Cash Loan N V KHAROTE: CRISIL Reaffirms 'D' Rating on INR7.83MM Bank Loan NEC PACKAGING: CRISIL Reaffirms 'B' Rating on INR4MM Cash Loan NITYASHRADDHA LIFECARE: CRISIL Reaffirms B Rating on INR8MM Loan OPUS DEI: ICRA Reaffirms B+ Rating on INR6cr Cash Loan PL ASSOCIATES: CRISIL Reaffirms 'B' Rating on INR5.0MM Loan PRAKRUTI LIFE: CRISIL Lowers Rating on INR7MM LT Loan to 'D' SAI SHIPPING: CRISIL Lowers Rating on INR16.3MM Term Loan to D SAMADHAN KENDRA: CRISIL Assigns B Rating to INR1MM LT Loan SHANTI GOPAL: ICRA Moves B Rating to Not Cooperating Category SHREE MORAYA: CRISIL Reaffirms B+ Rating on INR6MM Term Loan SJ LOGISTICS: ICRA Reaffirms B+ Rating on INR17cr Cash Loan SREE HANUMAN: CRISIL Reaffirms 'D' Rating on INR5MM Bank Loan SRI LAKSHMI: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan STELLAR MARINE: CRISIL Assigns B+ Rating to INR7.1MM Packing Loan TARINI AGRO: CRISIL Reaffirms B+ Rating on INR4.21MM Term Loan THREE C: ICRA Places 'B' Rating on Watch Negative I N D O N E S I A CHANDRA ASRI: S&P Affirms 'B+' CCR With Developing Outlook J A P A N LEOPARD TWO: Fitch Affirms 'BBsf' Rating on Class E Notes TAKATA CORP: Bar Date to File Airbag Injury Claims Set for Nov 27 N E W Z E A L A N D HANSA LTD: Paul Hibbs Admits to Running Ponzi Scheme S I N G A P O R E EZION HOLDINGS: Faces High Court Summons From Bond Holder MARCO POLO: Noteholders to Vote on Haircut, Waivers for Bonds PRECISION CAPITAL: Moody's Withdraws B3 Corporate Family Rating X X X X X X X X SOLOMON ISLANDS: Low Gov't Debt Burden Supports Credit Profile - - - - - ================= A U S T R A L I A ================= A & T COTTON: Second Creditors' Meeting Set for Nov. 2 ------------------------------------------------------ A second meeting of creditors in the proceedings of A & T Cotton Investments Pty Ltd, trading as 'Adventure Packed' & 'Expedition Camping', has been set for Nov. 2, 2017, at 3:00 p.m., at the offices of Vincents - Canberra, Level 7, 1 AMP Tower, 1 Hobart Place, in Canberra. 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 Nov. 1, 2017, at 4:00 p.m. Anthony Lane of Vincents was appointed as administrator of A & T Cotton Investments on Sept. 27, 2017. BLUESTONE CONSTRUCTIONS: Creditors Asked for More Cash ------------------------------------------------------ Quentin Tod at the Gold Coast Bulletin reports that people owed money by Bluestone Constructions have been told they'll have to hand over more cash if they want any chance of recovering the AUD6.3 million they've lost. Liquidator Jason Bettles, of Worrells, said on Oct. 22 that there were no funds left in the liquidation to pay for any further investigations or to pursue recovery actions through the courts, the report relates. According to the Gold Coast Bulletin, Mr. Bettles said he was asking creditors whether they were willing to fund such actions, which would include establishing whether Bluestone traded while insolvent. Bluestone, the construction contractor for the 255-unit Waterford apartment project at Bundall, collapsed in February owing AUD6.329 million, the report discloses. Its sole director is Richard Matthews, son of long-time Gold Coast developer Larry Matthews. In August, Larry Matthews vowed to pay back subbies and others who lost money in the collapse, the Gold Coast Bulletin relates. "It is my intention to pay creditors," he told the Gold Coast Bulletin. "This will come from the sale and settlement of assets within the Matthews Property Group". Last week, the Australian Taxation Office filed an application in the Federal Court to have Waterford developer Bluestone Project Management wound up, according to the Gold Coast Bulletin. The report relates that Mr. Bettles said matters relating to Bluestone Constructions that could be further investigated if funding was available included whether preferential payments were made by the company in the six months prior to its winding up. He said 110 payments which might be considered preferential, and totalling AUD7.638 million, were made by Bluestone Constructions. The liquidator said he also did not have funds to seek the recovery of AUD900,014 from Rowena Matthews, who was related to Richard Matthews, under a deed of covenant and assurance with the company and the Queensland Building and Construction Commission, the report relays. He said information passed on by creditors about the involvement in the company of Larry Matthews, who was not a Bluestone director, had been passed on to ASIC, the Gold Coast Bulletin relates. "We have been advised by creditors that Mr. Matthews was involved in the day-to-day operations of the company leading up to the appointment of liquidators," the report quotes Mr. Bettles as saying. Earlier this year, it was revealed Larry Matthews, at the time permanently excluded by the QBCC had "personally contributed funds" to help a financially troubled Bundall project developed by his son, adds the Gold Coast Bulletin. DARWIN LINEHAUL: First Creditors' Meeting Set for Oct. 31 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Darwin Linehaul (SA) Pty Ltd and Old No. 7 Operations Pty. Ltd. will be held at Level 12, 460 Lonsdale Street, in Melbourne, Victoria, on Oct. 31, 2017, at 10:00 a.m. Malcolm Kimbal Howell and Liam William Paul Bellamy of Jirsch Sutherland were appointed as administrators of Darwin Linehaul and Old No. 7 Operations on Oct. 19, 2017. MAKIN & LUBY: Second Creditors' Meeting Set for Oct. 31 ------------------------------------------------------- A second meeting of creditors in the proceedings of Makin & Luby Pty Ltd has been set for Oct. 31, 2017, at 11:00 a.m., at the offices of Grant Thornton Australia Limited, The Rialto, Level 30 525 Collins Street, 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 Oct. 30, 2017, at 4:00 p.m. Andrew Hewitt and Matthew Byrnes of Grant Thornton Australia were appointed as administrators of Makin & Luby on Sept. 25, 2017. MEDIA MOVERS: Second Creditors' Meeting Set for Oct. 31 ------------------------------------------------------- A second meeting of creditors in the proceedings of Media Movers Pty Ltd has been set for Oct. 31, 2017, at 10:00 a.m., at Gateway Building, Level 36, 1 Macquarie Place, in Sydney, New South Wales. 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 Oct. 30, 2017, at 3:00 p.m. Matt Adams and Andrew Schwarz of AS Advisory were appointed as administrators of Media Movers on Sept. 25, 2017. TIN SHED: Clifton Hall Appointed as Liquidator ---------------------------------------------- Mark Hall of Clifton Hall was appointed Liquidator of Tin Shed Wines Pty Ltd on Oct. 17, 2017 by Order of the Supreme Court of South Australia. ========= C H I N A ========= CHINA GRAND: Proposed Issue No Impact on B1 CFR, Moody's Says ------------------------------------------------------------- Moody's Investors Service says that China Grand Automotive Services Co., Ltd.'s proposed issuance of senior perpetual securities will not immediately impact its B1 corporate family rating or the stable outlook on the rating. The perpetual securities will be issued by Baoxin Auto Finance I Limited, a wholly owned subsidiary of China Grand Auto. China Grand Auto, in turn, unconditionally and irrevocably guarantees the perpetual securities. The proceeds of the proposed issuance will be used for repayment of debt and general corporate purposes. "Moody's expects the issuance to improve China Grand Auto's debt maturity profile," says Gerwin Ho, a Moody's Vice President and Senior Analyst. "Moody's does not expects the issuance to materially affect the company's credit metrics, because Moody's expects the proceeds will largely be used to refinance existing indebtedness, and because the securities will receive a 100% debt treatment from Moody's," adds Ho, who is also Moody's Lead Analyst for China Grand Auto. China Grand Auto's debt leverage -- as measured by adjusted debt/EBITDA -- was 6.2x in the 12 months to June 30, 2017, and Moody's expects that it will remain stable at around 6.1x over the next 12-18 months, with EBITDA/interest at about 3.5x. These metrics position the company at the single-B rating level. China Grand Auto's B1 rating reflects the company' strong position in China's (A1 stable) auto dealership market, as well as its large dealership network, brand diversity, growing service-related revenue and broad geographic coverage. However, the company's B1 rating is constrained by its moderately high debt leverage, which stems from its acquisitive growth strategy, weak liquidity position and exposure to regulatory risk. The stable outlook reflects Moody's expectations that China Grand Auto will (1) maintain its strong market position in the auto dealership market in China; and (2) be able to refinance its short-term debt. The principal methodology used in this rating was Retail Industry published in October 2015. China Grand Automotive Services Co., Ltd. was the largest auto dealer in China in terms of revenue and unit sales in 2016. It had 754 locations in China at end-June 2017, including 691 4S dealership stores. Established in 2006, China Grand Auto is listed on the Shanghai Stock Exchange and was 37.3% owned by the unlisted Xinjiang Guanghui Industry Investment (Group) Co., Ltd. (B2 stable) at end-June 2017. ZHONGRONG XINDA: Fitch Puts Final BB Rating to US$500MM Sr. Notes ----------------------------------------------------------------- Fitch Ratings has assigned Zhongrong Xinda Group Co., Ltd.'s (Zhongrong Xinda; BB/Stable) US$500 million senior notes due 2020 a final rating of 'BB'. The notes are issued by Zhongrong International Resources Co., Ltd, a wholly owned subsidiary of Zhongrong Xinda, and are rated at the same level as Zhongrong Xinda's senior unsecured rating as they represent the company's unconditional and irrevocable obligations. The final rating is the same as the expected rating assigned on 12 October 2017. KEY RATING DRIVERS Leading Coking Company: Zhongrong Xinda is one of China's top two coking companies, accounting for about 20% of Shandong Province's total production volume. Its large scale, deeper processing lines and long-term procurement contracts with both downstream and upstream producers provide cost advantages against peers and make it less susceptible to fluctuations than the downstream steel industry. Gross profit margins in coking ranged from 14%-15% in 2014-2016, while average annual steel prices fluctuated by about 20%-30%. Zhongrong Xinda's coking business accounted for 18% and 42% of its total revenue and gross profit in 2016, respectively. Logistics, Clean Energy Aid Diversification: Zhongrong Xinda is also China's ninth-largest logistics company and the largest in Shandong Province. The logistics business was originally intended to service its upstream and downstream customers, but has expanded into trading, supply-chain management and LNG-refuelling stations over the last several years, and provides stability to earnings. Logistics and clean energy accounted for 80% and 54% of total revenue and gross profit, respectively, in 2016. Fitch expects a focus on building out LNG stations, as this provides higher and more stable gross profit margins at around 21%-22%, compared with an overall gross margin of 6%-9%. Strong Financial Flexibility: Zhongrong Xinda's substantial liquid financial assets of CNY11 billion at end-2016 can provide liquidity and mitigate the risks of providing external guarantees. Fitch includes 75% of the available-for-sale financial assets in the calculation of FFO adjusted net leverage. In addition, more than half of the company's inventories are held for its coal and coke trading business, and are therefore accounted for as readily marketable inventories. Fitch includes 50% of Zhongrong Xinda's inventory in FFO adjusted net leverage calculation. FFO adjusted net leverage including adjusted financial assets and readily marketable inventories was 5.1x in 2016. Capital Discipline: Management has stated that it will limit future capex to its annual earnings (2016 adjusted profit: CNY3.0 billion), which will result in a shift from negative free cash flow (FCF) to FCF neutral in the medium term. Capex will be driven mainly by investment in building new LNG stations, which Fitch estimates to be CNY900 million a year. Fitch therefore expects the company to start deleveraging beginning in 2017. External Guarantees Raise Leverage: Fitch does not expects the company to increase its external guarantees. FFO adjusted net leverage including adjusted financial assets and readily marketable inventories was 5.1x at end-2016 (end-2015: 3.9x), including external off-balance sheet debt of CNY5.6 billion that the company has guaranteed. However, Fitch believes the counter- party risks from the guaranteed debt are manageable as the borrowers are large, established companies operating within the mining and processing value chain, and the debt is guaranteed on a secured basis. Quality Iron Ore Mine: Zhongrong Xinda acquired 80% of the Hierro Pampa de Pongo (HPP) iron ore project in Peru in 2016. The project is located next to an existing operational iron ore mine with a very low cost base and well-built out infrastructure. Fitch does not expects Zhongrong Xinda to develop the iron ore project in the next 12-24 months, given the significant capex requirement. Fitch also expects the development of the mine will be funded via equity financing and project finance, with debt ringfenced from the company. Fitch has not factored in the capital expenditures or contributions from the Peru iron ore mine in Fitch financial forecasts as Fitch does not expects the company to develop the mine if the financing is not in place. DERIVATION SUMMARY Zhongrong Xinda is larger in terms of scale than Chinese companies rated 'BB'. It is comparable with its peers in terms of coverage and leverage metrics. FFO adjusted net leverage including adjusted financial assets and raw-materials inventory is comparable with that of China-based Tewoo Group Co., Ltd. (BBB-/Stable), US-based Harsco Corporation (BB/Stable) and Grupo KUO, S.A.B. de C.V. (BB/Stable) of Mexico. Zhongrong Xinda's FFO margin is also comparable with that of commodity trading companies, such as Tewoo. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: - Sales growth slows to 7%-8% in 2018-2019 from the expected sales growth of 24% in 2017. - EBITDA margins to narrow by about 20bp from 2016 to 2019 because the lower-margin logistics business will account for a larger share of revenue and coking coal prices are likely to decline. - Capex of CNY1.6 billion-1.7 billion in 2016-2019. - Fitch has not factored in capex or contributions from the Peru iron ore mine as management is exploring options for a clear development plan RATING SENSITIVITIES Developments that may, individually or collectively, lead to positive rating action include: - FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories, of 2.5x on a sustained basis. Fitch includes 75% of the available-for-sales financial assets in the calculation of the FFO adjusted net leverage - Successful expansion of the logistics and LNG refuelling station businesses that leads to an improved business profile in terms of business diversity and less-cyclical earnings - Consistent FCF generation Developments that may, individually or collectively, lead to negative rating action include: - EBITDA margins decline to less than 5% on a sustained basis (2016: 6.2%) - FFO adjusted net leverage including adjusted financial assets and readily marketable inventories exceeding 3.5x on a sustained basis - FFO fixed-charge coverage below 3.0x on a sustained basis LIQUIDITY Adequate Liquidity: Zhongrong Xinda had CNY6.9 billion of unrestricted cash and CNY5.3 billion of undrawn credit facilities at end-2016, compared with short-term debt of CNY10.6 billion. ========= I N D I A ========= ABHISHEK AUTOMOTIVES: ICRA Moves B Rating to Not Cooperating ------------------------------------------------------------ ICRA has moved the rating for the INR10.00 crore fund-based bank facilities of Abhishek Automotives Private Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit (CC) 4.00 [ICRA]B (Stable); ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Ad-hoc e-DFS 0.95 [ICRA]B (Stable); ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Asset Backed 3.50 [ICRA]B (Stable); ISSUER NOT Loan (ABL) COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated limits 1.55 [ICRA]B (Stable); ISSUER NOT 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 AAPL, ICRA has been trying to seek information from the company to undertake a surveillance of ratings; but despite multiple requests, the company's management has remained non- cooperative. In the absence of the requisite information, ICRA's Rating Committee has taken a rating view based on the best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the company's rating is now denoted as: "[ICRA]B (Stable); 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 * Established track record with strong market position in Jabalpur district of Madhya Pradesh: The promoters of AAPL have a longstanding experience in the auto dealership business, which has resulted in a strong market presence in the Jabalpur district of Madhya Pradesh through three showrooms and a workshop. Credit weaknesses * Weak financial profile characterised by a highly leveraged capital structure and weak coverage indicators owing to high working capital borrowings: The financial profile of the company is weak due to a highly adverse capital structure with gearing of 10.64 times and weak debt protection metrics with OPBDITA/Interest of 1.16 times as on March 31, 2016. This is a result of high reliance on external borrowings for the firm's inventory funding. * Automobile dealership business is characterised by thin margins, weak bargaining position and high working capital intensity, due to large inventory holding requirements: AAPL's business is characterised by thin profitability due to margins fixed by Hyundai Motors India Limited (HMIL). Further, the firm has to maintain high inventory levels, which results in weak bargaining power and high working capital intensity of operations. * Modest scale of operations with high competitive intensity from other original equipment manufacturers (OEMs) in the area of operations: AAPL's scale of operations remain modest and its revenues are vulnerable to the cyclicality inherent in the automotive industry, as well as to increasing competitive intensity among car dealers of other brands such as Maruti Suzuki and Tata Motors in the Jabalpur region. Incorporated in 2006, and promoted by Mr. Mahendra Patni and Mr. Abhishek Patni, Abhishek Automotives Pvt. Ltd. (AAPL/company) is an authorised dealer of cars manufactured by Hyundai Motors India Limited (HMIL). The company has four showrooms at Chhindwara, Seoni, Balaghat and Betul in Madhya Pradesh. Its largest showroom is in Chhindwara, spread across 40,000 square feet, which acts as a sales, services and spares (3S) outlet. AAPL has two group companies - Shubh Cars Pvt. Ltd., which is an authorised dealer of Honda Cars India Limited, and Abhishek Agencies, which operates a TVS Scooty dealership. APL MACHINERY: CRISIL Assigns 'B' Rating to INR5MM Cash Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term facilities of APL Machinery Private Limited (APL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B/Stable (Assigned) The rating reflects the modest scale of operations along with high working capital intensity leading to stretched liquidity and below-average financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Scale of operation is modest with revenue of INR20.8 crore in fiscal 2017. * Below-average financial risk profile: Networth was modest at INR3.7 crore and gearing high at 2.7 times as on March 31, 2017, while debt protection metrics were average with interest coverage of 1.9 times and net cash accrual to adjusted debt of 0.08 time for fiscal 2017. * Large working capital requirement: Gross current assets were 274 days as on March 31, 2017 driven by high receivables and inventory of 132 and 129 days, respectively. This has led to stretched liquidity with fully utilised bank lines. Strength * Extensive experience of the promoters: Benefits from the promoters' two decade-long experience in the industry and established relationships with suppliers and customers should support the business. Outlook: Stable CRISIL believes APL will benefit from the extensive experience of its promoters in the printing machines manufacturing industry. The outlook may be revised to 'Positive' if scale of operations and profitability increase while capital structure and working capital management improve. The outlook may be revised to 'Negative' if stretch in operating cycle or decline in revenue or profitability or any large debt-funded capital expansion programme weakens financial risk profile. Incorporated in 1995, APL manufactures screen printing machines and ultra violet curing machinery. The manufacturing facility is in Faridabad, Haryana. It is promoted by Mr Chander Prakash Paul and his wife Mrs Swati Paul. ARJUN TECHNOLOGIES: CRISIL Reaffirms D Rating on INR10MM Loan ------------------------------------------------------------- CRISIL has been consistently following up with Arjun Technologies India Limited (ATIL) for obtaining information through letters and emails dated June 21, 2017 and July 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 10 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 3 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 2.28 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term Bank Loan Facility 5.42 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Standby Line of Credit 2 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 Arjun Technologies India Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Arjun Technologies India Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'. Incorporated in 1998, and promoted by Mr P Chandrasekhar, ATIL is an engineering and equipment turnkey system supplier for the pulp and paper industry. BLESSINGS RESORTS: CRISIL Reaffirms 'D' Rating on INR29MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Blessings Resorts Private Limited (BRPL) continue to reflect delays in servicing debt because of time overrun in project. The company's hotel, which was scheduled to commence operations in September 2016, is now expected to be commissioned by January 2018. The project has missed deadline several times and was initially planned to be completed by March 2015. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL D (Reaffirmed) Term Loan 29 CRISIL D (Reaffirmed) The company also faces risks related to project implementation and stabilisation of operations, and is susceptible to cyclicality in the hospitality industry. However, it will benefit from the strategic location of its hotel. Key Rating Drivers & Detailed Description Weaknesses * Funding and implementation risks associated with ongoing project: Total project cost increased to INR51.7 crore from INR47.7 crore (debt-funded by INR29 crore and the rest through equity and unsecured loans). Of this, BRPL has spent INR39 crore till March 2017. Also, with stretched liquidity, project is exposed to implementation risk, and hence further delay in commissioning. * Exposure to cyclicality inherent in the hospitality industry: The hotel and resorts industry is vulnerable to changes in domestic and international economies. During slowdown, revenue per available room for premium hotels is expected to be impacted more significantly than mid-scale or economy hotels. Moreover, maintenance costs remain high for premium properties even during downward shifts in demand; cash flow from these properties is, therefore, more susceptible during such periods. Strength * Healthy growth prospects due to locational advantage: The company's proposed 3-star hotel and will be the only one with international tie-up and branding in its area of operations. Demand for upscale hotel rooms in Phagwara, Punjab, is expected to grow steadily during the next five years on account of increasing NRI flow, growth of universities, and fast-paced commercial development of havelis, malls, and commercial establishments. Set up in 2011 by Mr Harpinder Singh Gill and Mr Rajesh Aggarwal, BRPL is setting up a 3-star, 80-room hotel with banquet in Phagwara under the 'Park Inn by Radisson' brand. The company has tied up with Carlson Hotels Asia Pacific Pty Ltd. CHANDULAL CHANDRAKAR: CRISIL Cuts Rating on INR130MM Loan to D -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Chandulal Chandrakar Memorial Hospital Private Limited (CCMHPL) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 130 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects delays in servicing debt due to weak liquidity. CCMHPL also has a weak financial risk profile because of small networth, high gearing, and average debt protection metrics, and small scale of operations in the fragmented healthcare industry. However, it benefits from the extensive experience of its promoters. Analytical Approach Unsecured loans from promoters have been treated as neither debt nor equity as these bear nominal interest rate and are expected to remain in business over medium term. Key Rating Drivers & Detailed Description Weaknesses * Delay in servicing term loan: The Company has delayed meeting term debt obligation due to inadequate cash accrual. Accrual was just over INR12 crore against debt obligation of INR18 crore in fiscal 2017. This, along with fully utilised overdraft limit, strained liquidity and led to delays in debt servicing. * Weak financial risk profile: Networth was small at INR22.35 crore and gearing over 7 times, as on March 31, 2017. Debt protection metrics were muted, with interest coverage and net cash accrual to total debt ratios of 1.7 times and 0.1 time, respectively, for fiscal 2017. However, financial risk profile is partly supported by unsecured loans from promoters, which were INR53.45 crore as on March 31, 2017. * Average scale of operations: Improving, yet modest, scale of operations is reflected in revenue of INR86.3 crore in fiscal 2017. Ramp up in revenue and profitability was lower than expected. Strengths * Extensive experience of promoters: Presence of around two decades in various fields of medicine will continue to support operations. CCMHPL was set up in 1997 by Dr Mangal Prasad Chandrakar. It runs a 200-bed multi-speciality hospital in Bhilai and a 500-bed hospital-cum-medical college in Durg (both in Chhattisgarh). CHHATRAPATI SAMBHAJI: ICRA Moves B+ Rating to Not Cooperating ------------------------------------------------------------- ICRA has moved the ratings for the INR50.00-crore bank facilities of Chhatrapati Sambhaji Raje Sakhar Udyog Limited 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 Cash 50.00 [ICRA]B+(Stable) ISSUER NOT Credit Limits COOPERATING; 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 April 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 CSRSUL, 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 promoter in the sugar industry: Since the incorporation in 2000 and commencement of operations in 2001, the promoter has gained sufficient experience in sugar industry. The company's forward integrated operations with the co-generation unit provide additional source of revenue and partially protect the cyclicality inherent in the sugar industry though the contribution of the co-generation remains limited due to modest scale. Credit weakness * Stretched financial risk profile: The financial risk profile of the company is characterised by revenue de-growth in FY2016, low net margins, working capital intensive nature of operations and stretched capital structure as depicted by high gearing which stood at 8.6x as on March 31, 2016. * Regulatory risks associated with the sugar industry and the vulnerability of the sugar operations to agro climatic risks: The company remains vulnerable to regulatory risks impacting the availability and pricing of sugar cane, and critical aspects of distribution and pricing of sugar and to cyclicality inherent in the industry as the operations are not integrated with distillery as the co-generation unit capacity is primarily used for captive purpose. The reduced crushing levels depict the vulnerability to agro climatic risks. Incorporated in 2000, with first crushing season in SY 2001, CSRSUL is located near Aurangabad (Maharashtra). The company is promoted by Mr. Haribhau Bagade. DESIGNMATE INDIA: CRISIL Reaffirms 'D' Rating on INR11MM Loan ------------------------------------------------------------- CRISIL has reaffirmed its rating on the bank facility of Designmate India Private Limited (DIPL) at 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft 11 CRISIL D (Reaffirmed) The rating continues to reflect the company's weak liquidity with the continuous overdrawals in its bank lines for more than 30 days on account of shortage of funds. The company's liquidity is further stretched by its weak financial risk profile with negative networth and weaker debt protection metrics. The company's operation continues to be modest along with being working capital-intensive. Theses weaknesses are offset by its established market position in niche product segment. Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: The company's gearing has remained high and the company's net worth has turned negative due to accumulated losses as of March 2017. DIPL has weak debt protection metrics as reflected in the negative interest coverage and net cash accruals to total debt as on March 31, 2017. Significant de-leveraging in terms of capital infusion or significant accruals would lead some improvement in its financial risk profile over the medium term. * Working-capital-intensive operations: DIPL's gross current assets were 380-740 days over the three years ended March 31, 2017, driven by book debts 280-560 days respectively. CRISIL believes that DIPL's operations will remain working capital intensive over the medium term. * Modest scale of operations: The company's operations continue to be modest with its presence in the niche segment. The company sales in the year 2016-17 are estimated around Rs.17 Cr. CRISIL believes that the scale of operations of DIPL would continue to be modest over the medium term. Strength * Established market position in niche product segment: DIPL has been in the business of developing e-content and animations for more than 20 years. However, for the past 10 years, it has been focusing on education segment and that too specifically on K12 education. The company sells its products (software) under the brand, Eureka, in a 3D animated content catering to K12 curriculum of physics, chemistry, biology, and mathematics. This focus has helped DIPL to develop the product which has been well received by the market. CRISIL believes the company would continue to benefit due to its established name in the niche product segment. DIPL, founded in 1988 and incorporated in 2002, is promoted by Capt Kamaljeet Singh Brar and his wife, Mrs Ragini Brar. It is a 3D production house, developing creative eLearning content for the K12 segment. DIPL started as a production facility specialising in 3D animation for films, television, and video games. However, the company now exclusively develops digital learning (eLearning) content, mainly for the K12 segment. DEV BHOOMI: ICRA Moves 'B' Rating to Not Cooperating Category ------------------------------------------------------------- ICRA has moved the long-term rating on the INR8.50-crore fund- based bank facilities of Dev Bhoomi Frozen Food Products to the 'Issuer Not Cooperating' category. The long-term rating is now denoted as: "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 8.50 [ICRA]B(Stable) ISSUER NOT 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 DBFF, 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 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Relevant experience of the promoters in agro food processing sector * Increasing demand for frozen vegetable & fruits in domestic and international market Credit weaknesses * High competitive intensity in the industry characterized by few large players and a number of small players * Fluctuations in the profitability margins due to vulnerability of the firm to agro climatic risks which can impact the availability and pricing of raw material i.e. green peas Established in 2014, DBFF is involved in the processing of fruits and vegetables through individual quick freezing (IQF) technology for preservation. Its day-to-day operations are looked after by Mr. Yogesh Jain and Mr. Vinesh Jain and processing unit located at Kashipur (Uttarakhand). ELECTROSTEEL STEELS: Srei Infra Expresses Interest to Buy Firm -------------------------------------------------------------- Business Standard reports that Kolkata-based Srei Infrastructure Finance has formally expressed interest to acquire its debtor firm Electrosteel Steels, currently undergoing insolvency proceedings. Besides Srei, five others have formally expressed interest in the firm: Tata Steel, Mesco Steel, Edelweiss, Avalokiteshvar Valinv Ltd and Electrosteel Castings, Business Standard relates. Business Standard quotes a Tata Steel spokesperson as saying: "As a process, we do assess and evaluate various strategic opportunities for growth. This is an ongoing process in the company." Sreih has an exposure of around INR300-400 crore to Electrosteel Steels, the report notes. Electrosteel Steels Limited is an India-based company, which is engaged in basic iron and steel business. The Company is engaged in selling thermo mechanically treated (TMT) bars, billets, ductile iron (DI) pipes, pig iron and wire rod. The Company is engaged in setting up a 2.51 million ton per annum (MTPA) capacity Greenfield Integrated Steel and DI Pipes Plant in the district of Bokaro, Jharkhand. It produces TMT bars in Fe500, Fe500D and Fe500D corrosion resistance steel (CRS) variants. It manufactures DI pipes in sizes ranging from 100 millimeters (mm) to 1,200 mm. Its billets offer applications, such as general engineering, structural, rerolling and high tensile applications. Its wire rods have applications in engineering, construction, power and automobile sectors. It consists of a sinter plant, pellet plant, coke oven, blast furnace, basic oxygen furnace, billet caster, wire rod mill, bar mill and power plant. The Kolkata bench of the National Company Law Tribunal (NCLT), on July 21, had admitted the petition filed by the State Bank of India (SBI) against Electrosteel Steels and appointed Dhaivat Anjaria, partner in consultancy firm PwC, as the interim resolution professional (IRP). The company, which owes lenders INR11,309 crore, was referred to the bankruptcy court under Section 7 of the IBC following a nudge from the Reserve Bank of India (RBI). HARSHAMITRA ONCOLOGY: CRISIL Assigns 'B' Rating to INR6.58MM Loan ----------------------------------------------------------------- CRISIL has assigned 'CRISIL B/Stable' rating to the long-term bank facilities of Harshamitra Oncology Private Limited (HOPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 3.42 CRISIL B/Stable (Assigned) Term Loan 6.58 CRISIL B/Stable (Assigned) The rating reflects HOPL's exposure to risks related to timely commencement and ramp-up of operation of its radiation oncology facility and the company's below-average financial risk profile due to the large debt-funded capital expenditure (capex). These weaknesses are partially offset by the extensive experience of the promoters in oncology therapeutic segment in Tiruchirappalli (Tamil Nadu). Key Rating Drivers & Detailed Description Weaknesses * Exposure to risks related to timely commencement and ramp-up of operations: HOPL's radiation oncology facility is in the initial stages of construction and is expected to get completed by January 2018. The timely completion of the facility will be a key monitorable. Furthermore, the ramp-up in operations thereafter will also remain a key sensitivity factor. * Weak financial risk profile: Financial risk profile will remain weak due to expected modest networth of INR2 crore for fiscal 2018 and high gearing of over 5 times on March 31, 2018, owing to the large ongoing debt-funded capex for setting up the radiation oncology unit. Strength * Extensive experience of the promoters: HOPL's business risk profile benefits from the promoters' two-decade long experience in the industry and specifically running a hospital in Tiruchirappalli for the last 2 years, which specializes in surgical and medical oncology. Further majority of customers will be referred by promoter's group company Harshamitra super specialty cancer centre and research Institute private limited Outlook: Stable CRISIL expects HOPL's business risk profile to benefit from the extensive experience of the promoters in the oncology therapeutic segment. The outlook may be revised to 'Positive' if the company generates higher than expected cash accruals post timely completion of ongoing project within the budgeted cost. The outlook may be revised to 'Negative' if there is time or cost overruns on the project or delay in ramp-up of operations weakening the financial risk profile. Incorporated in May 2014, HOPL is promoted by Dr Govindaraj Ganesan and his wife Dr Sasipriya Ponniah. It is setting up a radiation oncology facility at Pudukkottai, Tamil Nadu. The facility is expected to commence operations from January 2018. INDO SILICON: CRISIL Reaffirms 'B' Rating on INR6.5MM Cash Loan --------------------------------------------------------------- CRISIL has been consistently following up with Indo Silicon Electronics Private Limited (ISPL) for obtaining information through letters and emails dated June 19, 2017 and July 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.5 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) 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 Indo Silicon Electronics 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 Indo Silicon Electronics Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. ISPL was incorporated in 1999, by Delhi-based Chadha family. ISPL earlier imported car accessories, and changed its line of business in 2005. It now trades in passenger car radials, light truck tyres, and bike tyres. Mr Harminder Singh Chadha, one of its directors, manages the operations. INDRA TUBES: CRISIL Reaffirms B+ Rating on INR12.5MM Cash Loan -------------------------------------------------------------- CRISIL has been consistently following up with Indra Tubes Private Limited (ITPL) for obtaining information through letters and emails dated September 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Cash 3.0 CRISIL B+/Stable (Issuer Not Credit Limit 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 Indra Tubes 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 Indra Tubes Private Limited is consistent with 'Scenario 1' 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. ITPL is a Ghaziabad-based company, promoted since 2009 by Mr. Sharad Gupta and his wife Ms. Sheetal Gupta. The company trades in mild steel pipes, galvanised iron pipes and fittings, and Polyvinyl Chloride (PVC) pipes and fittings through wholesalers and dealers in National Capital Region and Uttrakhand. JSRM FOODS: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan ---------------------------------------------------------- CRISIL has been consistently following up with J. S. R. M. Foods (JSRMF) for obtaining information through letters and emails dated July 13, 2017 and August 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term Bank Loan Facility .5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 1.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of J. S. R. M. Foods. This restricts CRISIL's ability to take a forward J. S. R. M. Foods is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. Established in 2012, JSRMF is a proprietary concern of Mr Abhinav Agrawal. It trades in agro commodities, and mills and processes paddy into rice, rice bran and broken rice. Its rice mill is located in Gondia (Maharashtra) and has an installed capacity of 160 tonne per day. KOMPLETE SUPPLY: CRISIL Reaffirms B+ Rating on INR6MM Loan ---------------------------------------------------------- CRISIL has been consistently following up with Komplete Supply Chain Solutions Private Limited (KSCSPL) for obtaining information through letters and emails dated July 11, 2017 and August 7, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Loan Against Property 6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 4 CRISIL B+/Stable (Issuer Bank Loan Facility 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 Komplete Supply Chain Solutions 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 Komplete Supply Chain Solutions Private Limited is consistent with 'Scenario 1' 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. Incorporated in 2011 and based in Thane, Maharashtra, KSCSPL constructs warehouses and also derives rental income. It is managed by the Premchandani family. KSC EDUCATIONAL: ICRA Reaffirms B+ Rating on INR150cr Loan ---------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ to the INR150.00 crore fund based and INR2.32 crore non fund based bank facilities of KSC Educational Society. The outlook on the long- term rating is 'stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Long Term 150.00 [ICRA]B+ (Stable); reaffirmed Non Fund based- Long Term 2.32 [ICRA]B+ (Stable); reaffirmed Rationale The reaffirmation of rating is constrained by continued net losses reported by the society resulting in negative corpus and weak capitalization indicators. High interest and depreciation level resulted in continued net losses. Rating is further constrained by weak financial profile characterised by continued high debt level incurred towards infrastructure development. The rating also factors in competition from other established institutions in the region that could impact the student strength and subsequently the profitability levels. However, the ratings derives comfort from the good quality of infrastructure (well equipped campus, dormitories and other amenities) provided by the school, its experienced management as well as the satisfactory student faculty ratio of 7.86:1 being maintained by the school which shall help it in attracting students in the long run. The rating also derives comfort from consistent growth in revenue owing to increase in strength coupled with increase in fees structure. The rating also factors in positively good location of the school which along with favorable demand prospects for educational institutes enhances KES' ability to attract students. The rating also takes into account support from the promoters for meeting the funding gap. While the funding requirements in the past have been met through unsecured loans infused by the promoters, continued timely support from the promoters shall be a key rating monitorable. Key rating drivers Credit strengths * Good location of school: Presence of residential area in vicinity provides potential target market. * Strong student faculty ratio: Management of school is managed by well experienced individuals heading different departments. Teachers' strength has increased to 176 presently from 149 in academic session 2017. * Consistent growth in revenues: OI of the society has increased from INR18.45 crore in FY2013 to INR48.53 crore in FY2017 supported by continued increase in students' strength and fee structure. Credit weaknesses * Competition from schools in the vicinity: Presence of other established institutions in the region could impact the student strength and subsequently the profitability levels * Net loss being made by the society in the past: Higher interest expense and depreciation resulted in continued losses at net levels in the past resulting in negative corpus. K.S.C Educational Society is promoted by the Chadha Group with the objective of providing technical and non-technical education. The Society has set up an international school (from Nursery to Class XII) by the name of 'Genesis Global School' in Sector 132 of Noida, Uttar Pradesh. The school commenced operations from April 2010. In FY2017 the company on provisional basis reported a net profit of INR(13.59) crore on an operating income of INR48.53 crore as compared to a net profit of INR(19.39) crore on an operating income of INR40.69 crore in the previous year. KSHITIJA INFRA: ICRA Moves B Rating to Not Cooperating Category --------------------------------------------------------------- ICRA has moved the rating for the INR25.00-crore bank facilities of Kshitija Infrastructure Private Limited. 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-Term 25.00 [ICRA]B (Stable); ISSUER NOT Loan COOPERATING; 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 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 Kshitija Infrastructure 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 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Extensive experience of promoters in the development of residential real estate projects: KIPL's key promoter has experience of more than two decades in the development of real estate projects. The extensive experience of the promoters has facilitated the company to establish strong relationship with customers as well as suppliers. * Attractive location of the project: The project is located on N.M. Joshi Marg, Byuculla (West), Mumbai, which is in close proximity to Byculla railway station and Mahalaxmi Railway Station with major civic facilities like shopping markets, educational institutes, hospitals and banks located in the vicinity of the project. Credit weaknesses * Exposed to inherent project execution risks: Given the nascent stage of the ongoing project, the firm is exposed to inherent project execution risk. The total estimated cost for the project is INR245.62 crore. The total cost incurred as on August 31, 2015 stood at INR139.53 crore (58% of total cost) with a scheduled project completion by December 2016. Given the nature of business, the company is exposed to risk associated with the execution of the project as per scheduled timeframe and within the budgeted cost. * Exposure to market risk: The company had booked 36% of the area under the project with advances of INR26.67 crore received till August 31, 2015. ICRA takes note of the vulnerability of the real estate sector to economic cycles along with intense competition from other players in the region. * High reliance on customer advances: The project is estimated to be funded by customer advances of INR131.63 crore (54% of total cost), by equity and unsecured loan of INR88.99 crore, (37% of total cost) and bank loans of INR25.00 crore (10% of total cost). The project has achieved financial closure and 95% of debt has been drawn down as on August 31, 2015. Moreover, the promoter contribution has also been entirely brought in the form of equity and unsecured loans. Nevertheless, the funding risk for the project remains high with majority of the remaining costs to be incurred is proposed to be funded by way of customer advances which are contingent on timely sales and collection of receivables. Incorporated in December 2000, Kshitija Infrastructure Private Limited is a closely held private limited company, based out of Mumbai, Maharashtra. The company is managed by Mr. Kamlesh G. Mehta who has an experience of more than a decade in the real estate industry. KIPL is engaged in the development of a residential project under the name 'Laxmi Building' in Byculla, Mumbai. MAA KALI: CRISIL Raises Rating on INR24.65MM Term Loan From D ------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Maa Kali Alloys Udyog Private Limited (MKAUPL) to 'CRISIL BB- /Stable/CRISIL A4+' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .5 CRISIL A4+ (Upgraded from 'CRISIL D') Cash Credit 24.25 CRISIL BB-/Stable (Upgraded from 'CRISIL D') Corporate Loan 4.75 CRISIL BB-/Stable (Upgraded from 'CRISIL D') Proposed Long Term Bank Loan Facility 0.10 CRISIL BB-/Stable (Upgraded from 'CRISIL D') Standby Line of 3.75 CRISIL BB-/Stable (Upgraded Credit from 'CRISIL D') Term Loan 24.65 CRISIL BB-/Stable (Upgraded from 'CRISIL D') The upgrade reflects timely servicing of debt since November 2016. CRISIL believes the company will continue to service its debt on time as the increasing gap between cash accrual and debt obligation has improved liquidity. Net cash accrual, estimated at INR6.8-7.0 crore for fiscal 2017, is expected to improve to INR8.0-8.5 crore against debt obligation of INR5.6-6.0 crore over the medium term, driven by moderate profitability due to captive power consumption. Furthermore, liquidity is supported by funding support from promoter and moderate bank limit utilisation, averaging about 70% over the eight months through August 2017. The ratings reflect promoter's extensive experience and established relationships with customers and suppliers. These strengths are partially offset by a modest scale and vulnerability to cyclicality in the steel industry. Analytical Approach For arriving at its ratings, unsecured loans of INR15.8 crore as of Sep 2017, from promoters, have been treated as neither debt nor equity. This is because these loans carry lower rate of interest than bank rate, were infused by the promoter in his individual capacity, and will remain in the business over the medium term. Key Rating Drivers & Detailed Description Strengths * Promoter's extensive experience: MKPL's promoter-director, Mr Rajendra Kumar Poddar, has experience of over two decades in the iron and steel industry. His experience has helped stabilise, and subsequently, scale up operations of the company in the past few years. The promoter's extensive experience should support MKPL's business risk profile over the medium term. * Established relationships with customers and suppliers: Extensive experience of over two decades has helped the promoter establish relationships with customers as well as suppliers. Weakness * Modest scale: Despite promoter's extensive experience, revenue has remained constrained at INR103-105 crore during fiscal 2017. * Vulnerability to cyclicality in the steel industry: MKPL is a marginal player in the secondary steel industry, which is highly fragmented, leading to intense competition. Operations will likely remain vulnerable to the inherent cyclicality in availability of steel products and volatility in raw material prices. Outlook: Stable CRISIL believes MKAUPL will benefit over the medium term from the promoter's extensive experience. The outlook may be revised to 'Positive' if any significant improvement in scale while sustaining its profitability and working capital cycle. Conversely, the outlook may be revised to 'Negative' if significantly low operating income and profitability, stretched working capital cycle, or debt-funded capital expenditure weakens the financial risk profile. Incorporated in 2002, MKAUPL manufactures sponge iron and billet. Its plant is located in Raigarh (Chhattisgarh). The company also operates captive power plant of 10 MW (6MW heat recovery-based and 4 MW coal-based) in its manufacturing facility.Operations are managed by its promoter-director Mr Poddar. MBL INFRA: Promoters May Infuse INR50,100cr to Avoid Liquidation ---------------------------------------------------------------- The Economic Times reports that MBL Infrastructure is hoping to avoid liquidation with the promoter of the company likely to infuse INR50,100 crore capital, according to two people aware of the development. A consortium of 15-20 lenders and insolvency professionals have tweaked the resolution plan that must be submitted to the National Company Law Tribunal (NCLT) for approval by December 23, the deadline set for the company under insolvency and bankruptcy proceedings started six months ago, said a senior executive who asked to remain anonymous, the report relates. According to the report, RBL Bank had dragged the once sought- after road builder to the NCLT for failing to repay a loan. The insolvency professional, in consultation with lenders, has also availed of advisory services in drawing a successful resolution plan, even as another Kolkatabased company, NICCO Corporation is heading for liquidation, the executive said. "A liquidation will only lead to job losses, while none of the related parties will gain from it. Hence, the promoter's funding will now be a key factor to make a successful resolution plan acceptable to the court and creditors," the executive, as cited by ET, said. NCLT Kolkata admitted the company for insolvency proceedings in March and appointed Delhi-based Sanjeev Ahuja as the resolution professional in the case. Recently, Vikram Bajaj, who successfully executed Chhaparia In dustries' resolution plan a few weeks ago, has been roped in for an advisory role. The resolution plan has also proposed monetisation through some of the company's subsidiaries over the next few years, said one of the persons cited earlier, ET says. MBL Infrastructure has a few subsidiaries, including AAP Infrastructure and MBL Toll Road Company, which could source future fund flows to the parent company, the report notes. Last month, the company had obtained the stipulated extension of 90 days within which the insolvency professional must conclude the case, adds ET. MBL Infrastructures Limited is engaged in execution of civil engineering projects with specialisation in roads & highways. MDA MINERAL: ICRA Moves C+ Rating to Not Cooperating Category ------------------------------------------------------------- ICRA has moved the long-term and short-term ratings for the INR13.50-crore bank facilities of Mda Mineral Dhatu (AP) Private Limited to the 'Issuer Non-Co-operating' category. The rating is now denoted as "[ICRA]C+/[ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Cash 5.00 [ICRA]C+; ISSUER NOT Credit COOPERATING; Ratings moved to the 'Issuer Not Cooperating' category Long Term-Term Loan 6.00 [ICRA]C+; ISSUER NOT COOPERATING; Ratings moved to the 'Issuer Not Cooperating' category Long Term-Non 2.50 [ICRA]C+; ISSUER NOT fund based COOPERATING; Ratings moved to the 'Issuer Not Cooperating' category Short Term- (2.50) [ICRA]A4; ISSUER NOT Interchangeable COOPERATING; Ratings 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 April 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 Mda Mineral Dhatu (AP) 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 * Significant experience of the promoters in the ferro alloy industry: The promoters have more than ten years of experience in ferro alloy business; resulting in established relationship with customers and suppliers * Diversified product portfolio with flexibility to change product mix: The company has set up electric arc furnace with a capacity of 6MVA which can manufacture different set of products like ferro manganese, ferro silicon and silicon manganese depending upon market requirement and demand which diversifies its product portfolio. Credit weaknesses * Small scale of operations: The scale of operations of the company remained low with revenues of INR46.12 crore during FY2016. * Weak financial profile: The financial profile of the company is characterized by negative profitability, high gearing and weak coverage indicators during FY2016 * Highly fragmented and competitive industry: The industry is highly fragmented with presence of large number of organised and unorganised players owing to low entry barriers and no product differentiation resulting in stiff competition and pricing pressure among players in the industry. MDA Mineral Dhatu (AP) Pvt. Ltd. (MDA) is a 6MVA ferro alloy unit was incorporated in the year 2011, after its de-merger from MDA Projects India Pvt. Ltd, by Mr.Vidhan Mittal, Mr.Vijay Kumar Mittal and Mr.Chagan Lal Mittal as directors. The parent company- MDA Projects India Pvt. Ltd. has been dissolved after the incorporation of MDA Mineral Dhatu (AP) Pvt. Ltd. The factory of the company is located at owned premises at Bobbilli, Vijayanagaram, Andhra Pradesh, spread over 4.50 acres. MICRO LOGISTICS: ICRA Reaffirms B+ Rating on INR7cr Cash Loan ------------------------------------------------------------- ICRA has re-affirmed the long-term rating of [ICRA]B+ to the INR8.00-crore fund based cash credit facilities. ICRA has also re-affirmed the long-term rating [ICRA]B+ and short-term rating of [ICRA]A4 to the INR2.00 crore unallocated bank facilities of Micro Logistics (India) Private Limited. The outlook on the long- term rating is 'stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash 7.00 [ICRA]B+ (Stable); Re-affirmed Credit Fund-based- 1.00 [ICRA]B+ (Stable); Re-affirmed Working Capital Demand Loan Unallocated 2.00 [ICRA]B+ (Stable)/[ICRA]A4; Re-affirmed Rationale The reaffirmation of ratings favorably take into account the extensive experience of the promoters and established track record of the group in the freight forwarding industry; the company's capability of providing end to end shipping and logistics solutions for international shipments; and its established clientele base. The ratings, however, are constraint by the weak in the financial profile of the company as reflected by low revenue growth and continuously declining operating profitability from 5.07% in FY2014 to 3.49% in FY2017. Further the aggressive capital structure traditionally maintained by the company due to high working capital borrowings and low equity base has resulted in high gearing of 4.22 times as on March 31, 2017 and weak coverage ratios depicted by TD/OPBDITA of 6.64 times and TOL/TNW of 4.41 times as on March 31, 2017. ICRA also takes into account the company's weak liquidity position owing to high receivable days and low payable days. Further, the ratings continue to remain constrained by the exposure of the company's revenues and margins to cyclicality present in international trade; intense competitive pressure from other organised as well as unorganised players operating in the fragmented freight forwarding industry; and risks arising from forex exposure wherein significant payables are denominated in foreign currency. Going forward, the company's ability to ramp up the cargo volume handled by it while maintaining its realisation per TEU (Twenty Foot Equivalent Unit), thereby improving the profit metrics, and efficient management of working capital cycle through reduction in receivable days will be the key rating monitorables. Key rating drivers Credit strengths * Extensive experience of the promoter and established track record of SJL group in freight forwarding industry: MIL is a part of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah in February 2013 for providing shipping services for international shipments (export/import). The extensive experience of promoters and established track record of the group in the freight forwarding industry have resulted in growth of the firm. * Multi modal freight forwarder providing end to end shipping & logistics solutions; established and diversified client base: As a freight forwarder, ML organises safe, time efficient and cost effective movement of goods on behalf of shippers, from their factories/warehouses to respective export destinations through air, sea and land. This has ensured an established and diversified client base for the company. Credit weaknesses * Weak financial profile characterised low profitability: The operating income of the company has grown at a low rate of ~5% in the past three years even though the volumes of cargo handled has more than doubled since FY2014, due to steeply decreasing realisation during the same period at INR90,191 per TEU in FY2014 to INR51,805 per TEU in FY2017. This has further strained the profitability of the company which has traditionally been low at ~1.20% at net level since FY2014. * Aggressive capital structure with weak coverage indicators: The capital structure of the company has remained aggressive since inception on account of low equity base, modest accruals and high reliance on bank borrowings to meet the funding needs and has resulted in low coverage indicator depicted by TD/OPBDITA of 6.64 times and TOL/TNW of 4.41 times as on March 31, 2017. * Tight liquidity position arising out of long receivable and short payable periods leading to high working capital requirements: The working capital cycle of the company generally remains stretched on account of elongated receivable turnaround time and tight payable period. The working capital intensity as on FY2017 end remained at 27% account of very high debtor days. The company had to offer more liberal credit to its clients during FY2017 due to weak demand scenario and intense competitive pressures. This has also resulted in near to full utilisation of working capital limits. * Highly fragmented and competitive industry with a large number of unorganised players which limits pricing power: Competition in freight forwarding, logistics and supply chain management industry remains intense with global as well regional and local players. The competitors also include integrated transportation companies that operate their own aircraft/vessels, cargo sales agents and brokers, surface freight forwarders and carriers, airlines, associations of shippers organised to consolidate their members' shipments to obtain lower freight rates. This limits the bargaining power of MIL with the customers and suppliers. * Exposure to fluctuations in foreign exchange rates: MIL receives payment in INR from the customers after converting it at the prevailing exchange rate on the day of payment. This exposes the company to currency fluctuation risks. The risk is enhanced further on account of large time lag between payment to shipping lines and receipt of payment from shippers. The company does not have any firm hedging policy in place. MIL is a part of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah in February 2013 for providing shipping services for international shipments (export/import). Over the years, the promoter has gradually expanded the business by adding various value added services to provide end to end shipping & logistics solutions for exporters/importers. SJL group currently has three more entities based in India namely S. J. Logistics (India) Private Limited, Opus Dei Logistics (India) Private Limited and Gulf Orient Shipping which provide shipping services such as ocean & air freight forwarding, customs clearance, transportation etc. The group mainly concentrates on ocean export shipments. Each entity specializes in handling of particular type of cargo/commodities. In FY2017, on a provisional basis, the company reported a net profit of INR0.43 crore on an operating income of INR37.14 crore, as compared to a net profit of INR0.38 crore on an operating income of INR35.51 crore in the previous year. N V KHAROTE: CRISIL Reaffirms 'D' Rating on INR7.83MM Bank Loan --------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL D/CRISIL D' ratings on the bank facilities of N V Kharote Constructions Private Limited (NVKCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 7.83 CRISIL D (Reaffirmed) Cash Credit 6.00 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 0.17 CRISIL D (Reaffirmed) The ratings continue to reflect NVKCPL's continuous delays in servicing debt due to weak liquidity. The ratings also factor in small scale of operations in the highly competitive construction industry and weak financial risk profile. These weaknesses are partially offset by experience of promoters. Key Rating Drivers & Detailed Description Weaknesses * Delays in repayment: The company continued to delay its term debt obligation due to inadequate cash accrual. This, along with over-utilised cash credit limit, strained liquidity led to delays in debt servicing. * Small scale of operations: Scale of operations has been modest, with low operating income of INR8.5 crore in fiscal 2017, amid intense competition. * Weak financial risk profile: Networth was low at INR2.5 crore as on March 31, 2017, with high gearing of 5.78 times. Interest coverage ratio and NCATD were also weak at 1.3 times and 0.04 times in fiscal 2017. Strength * Experience of promoters: Benefits from the promoters' experience of over two decades and healthy relations with customers and suppliers should continue to support the business. NVKCPL, incorporated in 1992, executes turnkey water supply and lift irrigation projects for government agencies. The Pune-based company specialises in manufacturing and laying out of pipes along with related civil, electrical and fabrication activities. NEC PACKAGING: CRISIL Reaffirms 'B' Rating on INR4MM Cash Loan -------------------------------------------------------------- CRISIL has been consistently following up with NEC Packaging Limited (NEC) for obtaining information through letters and emails dated September 19, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 1 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 NEC Packaging 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 NEC Packaging Limited is consistent with 'Scenario 1' 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'. Incorporated in 1979, NEC manufactures packaging materials such as printed corrugated cartons, unprinted laminated films, blister foils and bulk drug bags, printed poly vinyl chloride shrink labels, and cold formed foils. It has its manufacturing unit in Mohali (Punjab) and is managed by Mr. Vivek Kumar Gupta. NITYASHRADDHA LIFECARE: CRISIL Reaffirms B Rating on INR8MM Loan ---------------------------------------------------------------- CRISIL has been consistently following up with Nityashraddha Lifecare Private Limited (NLPL; part of the NL group) for obtaining information through letters and emails dated July 13, 2017 and August 17, 2017among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 8 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. For arriving at the rating, CRISIL has combined the business and financial risk profiles of NLPL and Nityashraddha Lifecare (NL), together referred as the NL group. This is because NL has extended loan and property to NLPL. 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 Nityashraddha Lifecare 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 Nityashraddha Lifecare Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. Incorporated in 2013 and promoted by Dr. Thakur and Mr. Deshpande and their families, the NL group is setting up a 100-bed multi- speciality hospital in Pune. OPUS DEI: ICRA Reaffirms B+ Rating on INR6cr Cash Loan ------------------------------------------------------ ICRA has reaffirmed the long-term rating of [ICRA]B+ to the INR7.00-crore fund based facilities and the long term and short- term rating of [ICRA]A4 to the INR3.00 unallocated bank facilities of Opus Dei Logistics (India) Private Limited. The outlook on the long-term rating is 'stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash 6.00 [ICRA]B+ (Stable); Reaffirmed Credit Fund-based- 1.00 [ICRA]B+ (Stable); Reaffirmed Working Capital Demand Loan Unallocated 3.00 [ICRA]B+ (Stable)/[ICRA]A4; Reaffirmed Rationale The reaffirmation of ratings favorably take into account the extensive experience of the promoters and established track record of the group in the freight forwarding industry; the company's capability of providing end to end shipping and logistics solutions for international shipments; and its established clientele base. The ratings, however, are constraint by the weak in the financial profile of the company as reflected by the steeply declining operating profitability from 6.81% in FY2014 to 3.36% in FY2017. Further the aggressive capital structure traditionally maintained by the company due to high working capital borrowings and low net worth base has resulted in high gearing of 2.46 times as on March 31, 2017 and weak coverage ratios depicted by TD/OPBDITA of 5.40 times and TOL/TNW of 3.09 times as on March 31, 2017. ICRA also takes into account the company's weak liquidity position owing to high receivable days and tight payable days. Further, the ratings continue to remain constrained by the exposure of the company's revenues and margins to cyclicality present in international trade; intense competitive pressure from other organised as well as unorganised players operating in the fragmented freight forwarding industry; and risks arising from forex exposure wherein significant payables are denominated in foreign currency. Going forward, the company's ability to ramp up the cargo volumes handled while maintaining realisation per TEU (Twenty Foot Equivalent Unit), thereby improving the profit metrics and efficient management of working capital cycle through reduction in receivable days will be the key rating monitorables. Key rating drivers Credit strengths * Extensive experience of the promoter and established track record of SJL group in freight forwarding industry: Opus is a part of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah in June 2010 for providing shipping services for international shipments (export/import). The extensive experience of promoters and established track record of the group in the freight forwarding industry have resulted in growth of the company. * Multi modal freight forwarder providing end to end shipping & logistics solutions; established and diversified client base: As a freight forwarder, Opus organises safe, time efficient and cost effective movement of goods on behalf of shippers, from their factories/warehouses to respective export destinations through air, sea and land. This has ensured an established and diversified client base for the company. Credit weaknesses * Sharp declining trend of operating profitability: The operating income of the company has grown at a high rate of 26% p.a. in the past three years due to considerable growth in the volumes of cargo handled since FY2014. However, due to steeply decreasing realisation during the same period from INR104,948 per TEU in FY2014 to INR52,431 per TEU in FY2017, the profitability of the company has further declined from the already low level of 6.81% in FY2014 to 3.36% in FY2017. * Aggressive capital structure with weak coverage indicators: The capital structure of the company has remained aggressive since inception on account of low equity base, modest accruals and high reliance on bank borrowings to meet the funding needs and has resulted in low coverage indicator depicted by TD/OPBDITA of 5.40 times and TOL/TNW of 3.09 times as on March 31, 2017. * Tight liquidity position arising out of long receivable and short payable periods leading to high working capital requirements: The working capital cycle of the company generally remains stretched on account of elongated receivable turnaround time and tight payable period. The working capital intensity as on FY2017 end remained at 25% account of very high debtor days. The company had to offer more liberal credit to its clients during FY2017 due to weak demand scenario and intense competitive pressures. This has also resulted in near to full utilisation of working capital limits. * Highly fragmented and competitive industry with a large number of unorganised players which limits pricing power: Competition in freight forwarding, logistics and supply chain management industry remains intense with global as well regional and local players. The competitors also include integrated transportation companies that operate their own aircraft/vessels, cargo sales agents and brokers, surface freight forwarders and carriers, airlines, associations of shippers organised to consolidate their members' shipments to obtain lower freight rates. This limits the bargaining power of Opus with the customers and suppliers. * Exposure to fluctuations in foreign exchange rates: Opus receives payment in INR from the customers after converting it at the prevailing exchange rate on the day of payment. This exposes the company to currency fluctuation risks. The risk is enhanced further on account of large time lag between payment to shipping lines and receipt of payment from shippers. The company does not have any firm hedging policy in place. Opus is a part of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah in June 2010 for providing shipping services for international shipments (export/import). Opus mainly operates from Nhava Sheva/Jawaharlal Nehru Port- Mumbai (Maharashtra), Mundra Port (Gujarat) for catering to traffic from north and west India, and Chennai Port & Tuticorin Port (Tamiladu) for shipments from southern parts of the country. The company specialises in handling of project cargo, hazardous cargo and over dimension cargo (ODC). Over the years, the promoter of SJL group has gradually expanded the business by adding various value added services to provide end to end shipping and logistics solutions for exporters/importers. SJL group currently has four entities operating in the country which provide shipping services such as ocean & air freight forwarding, customs clearance, transportation etc. The group mainly concentrates on ocean export shipments. Each entity specialises in handling of particular cargo/commodities. In FY2017, on a provisional basis, the company reported a net profit of INR0.56 crore on an operating income of INR36.75 crore, as compared to a net profit of INR0.32 crore on an operating income of INR26.85 crore in the previous year. PL ASSOCIATES: CRISIL Reaffirms 'B' Rating on INR5.0MM Loan ----------------------------------------------------------- CRISIL has been consistently following up with P. L. Associates (PL) for obtaining information through letters and emails dated September 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.5 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Foreign Letter of Credit 5.0 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 P. L. Associates. 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 P. L. Associatesis consistent with 'Scenario 1' 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. PL, set up in 2010 in Gandhidham, is promoted by Mr Salabh Kumar Agarwal. It processes and trades in pine wood logs and lumbers. PRAKRUTI LIFE: CRISIL Lowers Rating on INR7MM LT Loan to 'D' ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank loan facilities of Prakruti Life Science Private Limited (PLSPL) to 'CRISIL D/CRISIL D' from 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 7 CRISIL D (Downgraded from 'CRISIL B-/Stable') Overdraft 1.03 CRISIL D (Downgraded from 'CRISIL A4') The downgrade reflects the company's delayed repayment for mortgage loan and securitization loan. Delay in repayment was due to weak liquidity and stretched working capital cycle. Key Rating Drivers & Detailed Description Weaknesses * Delayed repayment for mortgage loan and securitization loan: Working capital-intensive operations have led to high reliance on debt and weak liquidity. * Modest scale of operations: Scale of operations, reflected in revenue of INR3.4 crore in fiscal 2016 due to nascent stage of operations. Strength * Promoters' extensive industry experience: PLSPL is promoted by Mr M R Shetty, Mr Pramod Hegde, and their relatives. Mr Shetty has experience of over 25 years in the pharmaceuticals industry. He was earlier involved in processing and manufacturing of herbal extracts on a jobwork basis. PLSPL, set up in 2012 and based in Udupi, Karnataka, is part of the Prakruti group. It undertakes contract manufacturing of pharmaceutical drugs. Operations are managed by Mr M R Shetty. For fiscal 2016, PLSPLs net loss was INR5.47 crore on net sales of INR3.94 crore, against a profit after tax (PAT) of INR0 crore on net sales of INR0 crore for fiscal 2015. SAI SHIPPING: CRISIL Lowers Rating on INR16.3MM Term Loan to D -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Sai Shipping Company Pvt Ltd (SSCPL, part of the Sai group) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft 1.5 CRISIL D (Downgraded from 'CRISIL B+/Stable') Proposed Long Term 11.2 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B+/Stable') Term Loan 16.3 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects delays in repayment in the term loans on account of stretched liquidity. The rating continues to be constrained by subdued operating performance during fiscal 2017 leading to stretched liquidity, below-average debt protection metrics and susceptible to the inherent cyclicality in the shipping industry. However, it benefits from the extensive experience of its promoters. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SSCPL, Sunrise Maritime Pte Ltd (Sunrise), Sai Shipping Co (Gujarat) Pvt Ltd, and Sai Maritime & Management Pvt Ltd, collectively referred to as the Sai group. All the entities have common promoters and management, and fungible cash flows. Key Rating Drivers & Detailed Description Weakness * Subdued Operating performance: The group has reported negative operating margins of (6.4%) leading to negative cash accruals during fiscal 2017. * Susceptibility to cyclicality in the shipping industry: The sea cargo industry is cyclical, and is characterised by volatile fright prices and a highly fragmented structure. The group's revenue and profitability will remain exposed to such volatility over the medium term. * Below-average debt protection metrics: The interest coverage and net cash accrual to total debt ratios were negative for fiscal 2017 due to losses. The metrics are expected to remain muted over the medium term. Strength * Extensive industry experience of the promoters: The three- decade long experience in the shipping industry has helped the group to build a strong reputation at major ports in the country and abroad. Incorporated in 1977, SSCPL undertakes chartering and freight forwarding, and stevedoring of bulk cargo and is expected to acquire a vessel for coastal operations. The other entities of the Sai group are also in the same line of business and the group has diversified into the ship-owning business through Sunrise Maritime Pte Limited. SAMADHAN KENDRA: CRISIL Assigns B Rating to INR1MM LT Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the proposed bank loan rating of Samadhan Kendra (Samadhan). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 1 CRISIL B/Stable The rating reflects Samadhan's small scale, with geographic concentration in one district in Bihar. Operations also remain vulnerable to the risks inherent in the microfinance industry. These weaknesses are partially offset by Samadhan's long track record in the microfinance sector. Key Rating Drivers & Detailed Description Weaknesses * Small scale with geographic concentration: Samadhan operates on a small scale, compared to other CRISIL-rated microfinance institutions (MFIs). The organisation, despite being in operations for over a decade, had a total asset size and loan portfolio of INR0.6 crore and INR0.2 crore, respectively, as on March 31, 2017. Operations are concentrated and confined only to Vaishali district in Bihar. * Exposure to risks inherent in the microfinance segment: The microfinance sector is susceptible to regulatory and legislative risks. The promulgation of the ordinance on MFIs by the Government of Andhra Pradesh demonstrated the vulnerability of MFIs to regulatory and legislative risks, and triggered a chain of events that adversely impacted the MFI business model by impairing growth, asset quality, operating surplus, and solvency. Such institutions lend to the poor and downtrodden sections of society, and will therefore remain exposed to socially sensitive factors, including high interest rates, and, consequently, to tighter regulations and legislation. Strengths * Long track record in the microfinance sector: Samadhan has been operating in the microfinance sector in Vaishali district since 2004. The organisation has also closely been working with NABARD in developing the rural finance in its area of operations. The organisation has covered around 16 blocks in the district. Samadhan has nurtured and developed over 2500 self-help groups (SHGs) in the villages in Vaishali district. It has also maintained good asset quality in its lending portfolio. The organisation has carried out its operations profitably over the past three years. Outlook: Stable CRISIL expects Samadhan's scale to remain small and geographically concentrated over the medium term. The outlook may be revised to 'Positive' in case of significant improvement in scale and capitalisation. Conversely, the outlook may be revised to 'Negative' if asset quality and profitability deteriorate, thereby impacting capitalisation. Samadhan was started in 2004 by Mr Subhash Kumar, along with few other like-minded youth of Vaishali district for social and financial inclusion of underprivileged. Currently, it operates in 16 blocks of Vaishali district. The organisation offers financial and non-financial services to the poor, and unbanked people in rural and semi-urban areas who are involved in agricultural and small business activities. It has partnered with NABARD, Canara Bank, Indian Bank, Bank of Baroda for SHG formation and the collection of their dues. It had total asset, networth, and gearing of INR0.6 crore, INR0.3 crore, and 0.2 time, respectively, as on March 31, 2017. For fiscal 2017, Samadhan reported a surplus of INR13 lakh on a total income of INR58 lakh, against a surplus of INR4 lakh on a total income of INR55 lakh for the previous year. SHANTI GOPAL: ICRA Moves B Rating to Not Cooperating Category ------------------------------------------------------------- ICRA has moved the ratings for the INR42-crore bank facilities of Shanti Gopal Concast Limited 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 ---------- ----------- ------- Long-term fund- 40.00 [ICRA]B (Stable); ISSUER NOT based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Short-term non- 2.00 [ICRA]A4; ISSUER NOT fund based COOPERATING; 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 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 Shanti Gopal Concast 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 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Experience of promoters: The promoters have established track record in managing various companies under Ganga group. Credit weaknesses * Weak profitability indicators: Weak profitability indicators as reflected in below-average return on capital indicators owing to low capacity utilisation levels * Modest scale of operations: Modest scale of company's operations and fragmented industry poses high competition, limits pricing power and hence results in modest profitability SGCL was incorporated in 2005 and manufactures sponge iron and steel billets. The company was initially promoted by the Agarwal family, who later sold their entire stake in the company to the Chaudhary family in October, 2011. SGCL has its manufacturing facility in Mirzapur, Uttar Pradesh, having installed capacity of 90,000 tonnes per annum (TPA) for manufacturing sponge iron and 28,800 TPA for manufacturing steel billets. SHREE MORAYA: CRISIL Reaffirms B+ Rating on INR6MM Term Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank facilities of Shree Moraya Polymers Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B+/Stable (Reaffirmed) Rupee Term Loan 6 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect SMPPL's small scale of operations and average financial risk profile because of low networth. The rating also considers working capital-intensive operations and susceptibility to fluctuations in raw material prices. These weaknesses are partially offset by experience of promoters and established relationship with Bisleri International Pvt Ltd (Bisleri). Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations: Scale remains small, with revenue at INR17.4 crore for fiscal 2017. * Average financial risk profile: Networth was low at INR2.6 crore resulting average financial risk profile with high gearing of 2.36 times as on March 31, 2017. However, with moderate operating profitability, the debt protection metrics is comfortable as reflected in interest coverage ratio was 2.9 times and NCATD at 0.3 times in fiscal 2017. With expected equity infusion in business from new directors the financial risk profile is expected to improve. * High working capital requirement: Gross current assets were sizeable at 141 days as on March 31, 2017 driven by high inventory and debtors of 68 days and 71 days respectively. * Exposure to volatility in raw material prices: Prices of the major raw material, polyethylene terephthalate (PET) granules, is highly volatile and linked to global crude oil movements. Hence, profitability may remain constrained over the medium term. Strength * Promoters' experience and established relationships with stakeholders: Benefits from the promoters' experience of over a decade whereby the company has been able to establish a diversified clientele and developed strong relationship with key customers like Bisleri. Outlook: Stable CRISIL believes SMPPL will continue to benefit from established customer relationship and experience of promoters. The outlook may be revised to 'Positive' if there is significant increase in revenues while maintaining operating profitability leading to higher cash accrual thereby strengthening financial risk profile. Conversely, the outlook may be revised to 'Negative' on account of low cash accruals due to decline in sales or profitability, or higher working capital requirement or any large debt-funded capex constraining its financial risk profile particularly liquidity. Incorporated in February 2013, Pune-based SMPPL manufactures PET bottles for Bisleri International Pvt Ltd. The company started commercial operations from September 2013. The company is promoted by Mr. Santosh Sawant, Mr. Ajay Galande and Mr. Rohidas Landhghe SJ LOGISTICS: ICRA Reaffirms B+ Rating on INR17cr Cash Loan ----------------------------------------------------------- ICRA has revised the long-term rating of to [ICRA]B+ to the INR22.00-crore fund based facilities of S. J. Logistics (India) Limited (erstwhile S. J. Logistics (India) Pvt. Ltd.) The outlook on the long-term rating is 'stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash Credit 17.00 [ICRA]B+ (Stable); Reaffirmed Fund-based-Foreign Currency Term Loan 5.00 [ICRA]B+ (Stable); Reaffirmed Fund-based-Working Capital Demand Loan (16.00) [ICRA]B+ (Stable); Reaffirmed Rationale The reaffirmation of ratings favorably take into account the extensive experience of the promoters and established track record of the group in the freight forwarding industry; the company's capability of providing end to end shipping and logistics solutions for international shipments; and its established clientele base. The ratings, however, are constraint by the weak in the financial profile of the company as reflected by sluggish growth in operating income along with a declining operating profitability from 6.34% in FY2016 to 4.61% in FY2017. Further the aggressive capital structure traditionally maintained by the company due to high working capital borrowings and low net worth base has resulted in high gearing of 3.25 times as on March 31, 2017 and weak coverage ratios depicted by TD/OPBDITA of 6.26 times and TOL/TNW of 3.72 times as on March 31, 2017. ICRA also takes into account the company's weak liquidity position owing to high receivable days and tight payable days. Further, the ratings continue to remain constrained by the exposure of the company's revenues and margins to cyclicality present in international trade; intense competitive pressure from other organised as well as unorganised players operating in the fragmented freight forwarding industry; and risks arising from forex exposure wherein significant payables are denominated in foreign currency. Going forward, the company's ability to ramp up the cargo volumes handled while maintaining realisation per TEU (Twenty Foot Equivalent Unit), thereby improving the profit metrics, and efficient management of working capital cycle through reduction in receivable days will be the key rating monitorables. Key rating drivers Credit strengths * Extensive experience of the promoter and established track record of SJL group in freight forwarding industry: SJL is a part of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah in December 2003 for providing shipping services for international shipments (export/import). The extensive experience of promoters and established track record of the group in the freight forwarding industry have resulted in growth of the company. * Multi modal freight forwarder providing end to end shipping & logistics solutions; established and diversified client base: As a freight forwarder, SJL organises safe, time efficient and cost effective movement of goods on behalf of shippers, from their factories/warehouses to respective export destinations through air, sea and land. This has ensured an established and diversified client base for the company. Credit weaknesses * Sluggish growth in operating income and declining operating profitability: The operating income of the company has grown at a low rate of ~4% p.a. in the past three years even though the volumes of cargo handled has increased by more than 70% since FY2014, due to steeply decreasing realisation during the same period from INR104,648 per TEU in FY2014 to INR65,064 per TEU in FY2017. This has further strained the profitability of the company which has traditionally been low at ~1.00-1.70%% at net level since FY2014. * Aggressive capital structure with weak coverage indicators: The capital structure of the company has remained aggressive since inception on account of low equity base, modest accruals and high reliance on bank borrowings to meet the funding needs and has resulted in low coverage indicator depicted by TD/OPBDITA of 6.26 times and TOL/TNW of 3.72 times as on March 31, 2017. * Tight liquidity position arising out of long receivable and short payable periods leading to high working capital requirements: The working capital cycle of the company generally remains stretched on account of elongated receivable turnaround time and tight payable period. The working capital intensity as on FY2017 end remained at 25% account of very high debtor days. The company had to offer more liberal credit to its clients during FY2017 due to weak demand scenario and intense competitive pressures. This has also resulted in near to full utilisation of working capital limits. * Highly fragmented and competitive industry with a large number of unorganised players which limits pricing power: Competition in freight forwarding, logistics and supply chain management industry remains intense with global as well regional and local players. The competitors also include integrated transportation companies that operate their own aircraft/vessels, cargo sales agents and brokers, surface freight forwarders and carriers, airlines, associations of shippers organised to consolidate their members' shipments to obtain lower freight rates. This limits the bargaining power of SJL with the customers and suppliers. * Exposure to fluctuations in foreign exchange rates- SJL receives payment in INR from the customers after converting it at the prevailing exchange rate on the day of payment. This exposes the company to currency fluctuation risks. The risk is enhanced further on account of large time lag between payment to shipping lines and receipt of payment from shippers. The company does not have any firm hedging policy in place. SJL is the flagship company of the Mumbai based SJL Group which is engaged in the clearing and forwarding business. The company was started by Mr. Rajen Shah as a proprietary concern in the year 2000 for providing shipping services for international shipments (export/import). Later it was converted into a private limited company in December 2003. Over the years, the promoter has gradually expanded the business by adding various value added services to provide end to end shipping & logistics solutions for exporters/importers. SJL group currently has four entities operating in the country which provide shipping services such as ocean & air freight forwarding, customs clearance, transportation etc. The group mainly concentrates on ocean export shipments. Each entity specializes in handling of particular cargo/commodities. In FY2017, on a provisional basis, the company reported a net profit of INR1.59 crore on an operating income of INR90.82 crore, as compared to a net profit of INR1.36 crore on an operating income of INR89.91 crore in the previous year. SREE HANUMAN: CRISIL Reaffirms 'D' Rating on INR5MM Bank Loan ------------------------------------------------------------- CRISIL has been consistently following up with Sree Hanuman Infra Private Limited (SHIPL) for obtaining information through letters and emails dated July 18, 2017 and August 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Overdraft 1 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 4 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sree Hanuman Infra Private Limited. This restricts CRISIL's ability to take a forward Sree Hanuman Infra Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'. Incorporated in 2005, SHIPL is promoted by Mr. Chavali Ramanjaneyulu and his family. The firm undertakes civil construction works such as construction of roads and railway tunnels. SRI LAKSHMI: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan ----------------------------------------------------------- CRISIL has been consistently following up with Sri Lakshmi Rice Industries (SLRI) for obtaining information through letters and emails dated July 18, 2017 and August 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 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 Sri Lakshmi Rice Industries. This restricts CRISIL's ability to take a forward Sri Lakshmi Rice Industries is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4'. Established in 2002, SLRI, based in Nellore (Andhra Pradesh), mills rice. The firm is promoted by Mr VV Sesha Reddy. STELLAR MARINE: CRISIL Assigns B+ Rating to INR7.1MM Packing Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Stellar Marine Foods (SMF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 7.1 CRISIL B+/Stable (Assigned) The rating reflects its below-average financial risk profile marked by small net worth and modest debt protection metrics. These rating strengths are partially offset by the extensive experience of promoters in the seafood industry. Key Rating Drivers & Detailed Description Strengths * Extensive experience of Promoters: The promoters of SMF have a track record of over 2 to 2.5 decades. The promoter's lineage has a strong fisheries connection, with the promoter family having been involved in the business since 1995. Weakness * Modest scale of operations amid intense competition: Scale of operations is modest, reflected in revenue of around INR13.74 crores in fiscal 2017, due to intense competition. * Below-Average financial risk profile: The company had gearing of around 1.18 times as on 31st March 2017 and modest debt protection metrics with interest coverage at 1.66 times as on March 31, 2017. Outlook: Stable CRISIL believes that SMF will continue to benefit in the medium term from the extensive experience of its promoters and its established customer relationships. The outlook may be revised to 'Positive' if the firm significantly scales up its operations and operating profitability, or improves its working capital management, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm records a decline in its accruals, or if higher-than- expected working capital requirement weakens its financial risk profile. Set up 2009, SMF is promoted by Mr. Jayant Mirani. The firm processes and exports various types of fishes, cephalopods and crustacean shrimps. TARINI AGRO: CRISIL Reaffirms B+ Rating on INR4.21MM Term Loan -------------------------------------------------------------- CRISIL has been consistently following up with Tarini Agro Foodprocess Private Limited (TAFPL) for obtaining information through letters and emails dated July 11, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2.78 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 4.21 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 Tarini Agro Foodprocess 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 Tarini Agro Foodprocess Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. TAFDPL was incorporated in 2008 is an Odisha based company. It is promoted by Mr. Pratap Kumar Sahoo and his wife of Mrs. Sasmita Sahoo. TAFDPL is engaged in the manufacturing of corn flakes, gram flour (besan powder) and potato chips. The company commenced its commercial operation in 2013. THREE C: ICRA Places 'B' Rating on Watch Negative ------------------------------------------------- ICRA has placed the rating of Three C Greens Developers Private Limited under watch with negative implications due to non receipt of information from the rated entity and Debenture Trustee ["DT"] regarding timely servicing of debt, and non availability of debt servicing disclosure(s) on recognized stock exchange as mandated under Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015. ICRA in accordance with SEBI Circular on 'Monitoring and Review of Ratings by Credit Rating Agencies (CRAs'), dated June 30, 2017 has sought confirmation from Three C Greens Developers Private Limited on debt servicing for the instruments detailed below, however has not received any response as yet: Amount Facilities (INR crore) Ratings ---------- ----------- ------- INE812R07011 NCD 225 [ICRA]B(SO) (Rating placed on watch with negative implications), Issuer not cooperating ================= I N D O N E S I A ================= CHANDRA ASRI: S&P Affirms 'B+' CCR With Developing Outlook ---------------------------------------------------------- S&P Global Ratings affirmed its 'B+' long-term corporate credit rating on PT Chandra Asri Petrochemical Tbk. (Chandra Asri), an Indonesia-based producer of petrochemical products. The outlook is developing. At the same time, S&P assigned its 'B+' issue rating to the proposed senior unsecured notes to be issued by Chandra Asri. S&P said, "The rating on Chandra Asri reflects what we assess to be the weaker credit quality of its majority shareholder and parent PT Barito Pacific Tbk. It also reflects the company's still-modest scale compared with regional peers, high single-site concentration, and its exposure to volatile product spreads in the petrochemical sector. Chandra Asri's integrated operations, larger operating scale following its cracker expansion, and improved balance sheet mitigate these weaknesses. "We equalize the rating on Chandra Asri to our assessment of the credit profile of Barito Pacific. Our 'b+' assessment of Barito Pacific reflects the likely spike in leverage at the group after the reorganization initiated at the end of 2016." Under that reorganization, Barito Pacific plans to acquire 66.6% of geothermal power producer and sister company Star Energy from its sponsor, Mr. Prajogo Pangestu. Star Energy has also acquired geothermal assets of Chevron in Indonesia earlier this year. Although the prices for the transactions were not disclosed, S&P believes these acquisitions could be at least partly debt-funded. Barito Pacific will also assume legacy operating debt. S&P said, "If both transactions close by the end of 2017, we estimate the group's consolidated debt-to-EBITDA ratio could temporarily spike to more than 4.0x in 2017. Consolidated group leverage could fall in 2018 if: (1) Barito Pacific has little recourse to debt to acquire shares in Star Energy; and (2) Star Energy applies excess cash flows from the full-year contribution of newly acquired assets and legacy assets to repay debt. "We cap the rating on Chandra Asri to the level of the group credit profile. That's because we view Chandra Asri as an integral part of the group's strategy, given its sizable contribution to consolidated group performance. We expect Barito Pacific and related parties to maintain a majority shareholding in Chandra Asri over the next few years and exert management and financial control, especially regarding financial policies. "We also regard Chandra Asri to be a non-insulated subsidiary of Barito Pacific, despite the presence of Siam Cement Group Public Co. Ltd. (SCG) as a minority shareholder. The reason is we believe hypothetical financial difficulties at the group or other group subsidiaries could affect Chandra Asri directly or indirectly. We also note some commonality in funding sources, demonstrated most recently by Barito Pacific's US$250 million bank loan using Chandra Asri shares as collateral. Future expansion at Chandra Asri may also require buying land from the sponsor. "Higher capital spending and the issue of the proposed notes do not materially alter our view on Chandra Asri's stand-alone credit profile (SACP), which we raised to 'bb-' from 'b+' in May 2017. Chandra Asri could spend on aggregate US$1.2 billion through 2019, about double our original base case, given that it includes preparatory spending on a second naphtha cracker in Indonesia. But the company is likely to generate US$100 million- US$150 million more in operating cash flows in 2017 than we earlier anticipated, based on product spreads realized since the beginning of the year. With oil prices still hovering around US$50 per barrel, there is also little sign of product spreads weakening sharply over the next six months. Finally, Chandra Asri received about US$377 million in proceeds from a rights issue in September 2017, designed specifically to fund the higher spending. "In our base case, proceeds from the rights issue, operating cash flows, and existing cash balance are sufficient to fund spending, dividends, and modest debt repayments until 2019 without resorting to using additional debt. We project gross reported debt, pro forma of the proposed bond, peaking at about US$650 million in 2017 and stabilizing around US$550 million in 2018 and 2019 as cash balance, with annual EBITDA of about US$350 million in 2018 and 2019. We still project Chandra Asri's ratio of debt to EBITDA to remain close to 1.7x over the period, a little higher than our previous projection of below 1.5x. "Those ratios are solid for the 'bb-' SACP, but capture the inherent volatility in product spreads and sharp changes in EBITDA and operating cash flows at weaker points in the cycle. Under a mid-cycle spread environment, we believe the company could generate at least US$175 million in EBITDA (translating into a debt-to-EBITDA ratio of 2.5x-3.0x), with the ratio not exceeding 4.0x under more stressed market conditions." The developing outlook on Chandra Asri reflects the uncertain direction over the next 12 months of the credit profile and balance sheet strength of Barito Pacific when the group completes its corporate reorganization. S&P may revise the outlook to stable or lower the rating on Chandra Asri if it assesses the consolidated credit profile of Barito Pacific as having substantially weakened. This could materialize if one or more of the following occurs: -- S&P assesses Barito Pacific's cash flow adequacy and leverage ratios as having substantially weakened post completion of the corporate reorganization, with a consolidated ratio of debt to EBITDA exceeding 3.5x and no prospect of near-term improvement. This could happen if Barito Pacific funds part of the Star Energy acquisition with debt upon the close of transaction. -- The group fails to maintain ample liquidity or its debt maturity profile is concentrated, leading to persistent refinancing risks. -- Chandra Asri's own operations deteriorate materially from current levels because of a sharp and sudden decline in product spreads or much higher spending than we anticipate, diminishing the profit-generation capacity of the group as a whole. S&P said, "We may assess Chandra Asri's SACP lower at 'b+' if the company embarks in near-term and large-scale greenfield projects or its product spreads decline sharply such that its debt-to- EBITDA ratio exceeds 3.5x with no prospect of recovery. We view this situation as unlikely over the next 12 months, given our forecasts of subdued oil and naphtha prices, steady product spreads and EBITDA. We may raise the rating on Chandra Asri if we assess the consolidated credit profile and balance sheet of Barito Pacific to be commensurate with at least a 'bb-' level, with a consolidated debt-to-EBITDA ratio sustainably below 3.0x after the company reorganization. We believe this could materialize if Barito's acquisition of the shares in Star Energy is funded with equity. A higher credit profile at Barito Pacific would also be contingent upon the group demonstrating and maintaining ample liquidity and proactively lengthening its debt maturity profile within the group." A higher SACP at Chandra Asri is unlikely over the next 12-24 months, given the company's structural exposure to industry risks in the petrochemical sector, volatile product spreads, high operating leverage, and moderate scale compared with higher-rated peers regionally and globally. A 'bb' SACP would require the company to achieve a larger scale, broader product diversity, a permanently reduced sensitivity to fluctuations in product spreads through enhanced integration and greater economies of scale, while maintaining a debt-to-EBITDA ratio below 2.0x through a product spread cycle. ========= J A P A N ========= LEOPARD TWO: Fitch Affirms 'BBsf' Rating on Class E Notes --------------------------------------------------------- Fitch Ratings has affirmed the ratings of all rated notes of Leopard Two Funding Limited (Leopard Two) and L-MAP One Funding Limited (L-MAP One). These transactions are securitisations of fully amortising mortgage loans backed by multi-family apartment properties throughout Japan. The rating actions are: Leopard Two Funding Limited JPY1,623 million* Class A-1 notes affirmed at 'AAAsf'; Outlook Stable JPY1,623 million* Class A-2 notes affirmed at 'AAAsf'; Outlook Stable JPY520 million* Class B notes affirmed at 'AAsf'; Outlook Stable JPY520 million* Class C notes affirmed at 'Asf'; Outlook Stable JPY540 million* Class D notes affirmed at 'BBsf'; Outlook Stable JPY41 million* Class E notes affirmed at 'BBsf'; Outlook Stable L-MAP One Funding Limited JPY5,380 million* Class A notes affirmed at 'AAAsf'; Outlook Stable JPY538 million* Class B notes affirmed at 'AAsf'; Outlook Stable JPY89 million* Class C notes affirmed at 'Asf'; Outlook Stable *All tranche balances are as of Oct. 19, 2017. KEY RATING DRIVERS The affirmations reflect Fitch's view that stable performance of the underlying loans and available credit enhancement (CE) levels are sufficient to support the current ratings. The low interest rate environment and the master lease structure for the collateral properties have contributed to stable loan performance, and delinquencies and defaults have been limited for both transactions. The number of defaulted loans has been limited since closing. There has been one default from Leopard Two and two from L-MAP One to date. Fitch expects this trend to continue. RATING SENSITIVITIES An unexpected increase in the delinquency or default rates may lead to higher loss assumptions, which may, in turn, affect the ratings of the notes. However, the 'AAAsf' ratings on the class A-1 and A-2 notes of Leopard Two and class A notes of L-MAP One can be supported even if assumed property cash flows decline from the agency's initial assumptions by 40% in Leopard Two and 25% in L-MAP One. TAKATA CORP: Bar Date to File Airbag Injury Claims Set for Nov 27 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set deadlines for filing proofs of claim in TK Holdings Inc. and certain of its affiliates' Chapter 11 cases, including a deadline for asserting claims against any Debtor for monetary losses, personal injury, or death arising out of or relating to an airbag containing phase-stabilized ammonium nitrate propellant or their component parts, made or sold by the Debtors before they filed for bankruptcy. The deadlines are: a) for claims against any Debtors other than (i) PPIC claims and (ii) claims of governmental units, the deadline to file a claim is Nov. 27, 2017, at 5:00 p.m. (Eastern Time); b) for PPIC claims, the deadline to file a claim is Dec. 27, 2017, at 5:00 p.m. (Eastern Time); and c) for claims against any Debtors asserted by a governmental unit, the deadline to file a claim is Dec. 22, 2017, at 5:00 p.m. (Eastern Time). All proofs of claim must be filed: i) electronically through Prime Clerk's website by using TKRestructuring.com; or ii) by delivering the original proof of claim form to: a) by mail: TK Holdings Inc. Claim Processing Center c/o Prime Clerk LLC Grand Central Station PO Box 4850 New York, NY 10163-4850 - or - b) by overnight, courier or hand delivery: TK Holdings Inc. Claims Processing Center c/o Prime Clerk LLC 850 Third Avenue, Suite 412 Brooklyn, NY 11232 About Takata Corp Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the insurance policies. Sakura Kyodo Law Offices will serve as special counsel. Roger Frankel, the legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-counsel. Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. ==================== N E W Z E A L A N D ==================== HANSA LTD: Paul Hibbs Admits to Running Ponzi Scheme ---------------------------------------------------- The New Zealand Herald reports that a Christchurch businessman has admitted running a Ponzi scheme. Paul Clifford Hibbs owned and ran two companies - one called Hansa and another called Cameron Gladstone Investments - and through them provided false reports to investors, the Herald relates. Mr. Hibbs, according to the Serious Fraud Office, also used investor funds in ways he wasn't allowed to. He admitted charges for a false statement by a promoter, theft by a person in a special relationship, using forged documents and forgery, according to the Herald. "If investors have doubts, a good option is to check the list of Authorised Financial Advisers on the Financial Markets Authority website," the Herald quotes SFO director Julie Read as saying. "All financial advisers must comply with the requirements of the Financial Advisers Act 2008. Mr Hibbs was not registered." Mr. Hibbs is in custody and is due to be sentenced in the Christchurch District Court in February next year, the Herald adds. Hansa was established in 2005, with Mr. Hibbs listed as the only director and shareholder the company has ever had. According to Stuff.co.nz, Hansa's investment prospectus said clients, of which it has been claimed there were about 30, needed to have investable assets of at least NZ$1 million. The prospectus said Hansa's "unique privileges and benefits" were only available by invitation. In July 2016, the Serious Fraud Office (SFO) and Financial Markets Authority (FMA) said they were investigating Mr. Hibbs and his company, Hansa. Hansa was tipped into liquidation on application by investor John Docherty and his wife in November 2015. Waterstone Insolvency liquidator Damien Grant said in December 2016 they had so far identified payments of at least NZ$9 million into the company, Stuff.co.nz disclosed. ================= S I N G A P O R E ================= EZION HOLDINGS: Faces High Court Summons From Bond Holder --------------------------------------------------------- Marissa Lee at The Strait Times reports that Ezion Holdings, which is asking creditors for support to push back debt deadlines, has been served with an originating summons issued by the High Court from a substantial bond holder, the firm said on Oct. 24. Bond holder Ravi Murarka owns a substantial share of the liftboat operator's tranche of $120 million bonds backed by DBS Bank, the report says. Last month, he served Ezion a redemption notice, citing the bond clause that he can demand to be paid back in full "in the event that the shares of the issuer cease to be listed or traded," the report recalls. He is now seeking a court declaration that Ezion's shares have "ceased to be traded" on the Singapore Exchange, within the meaning of that clause, according to the report. The Strait Times says Ezion chose to suspend trading of its shares on Aug. 14 to discuss a debt reorganisation plan with lenders, as it faced a cash crunch from depressed charter rates and slow payments by clients. In its bourse filing on Oct. 24, Ezion reiterated its position that "the shares have not ceased to be listed or traded, and that the shares have only been suspended from trading". The company is seeking legal advice on the summons, and has up to three weeks to submit an affidavit in response, the report notes. Ezion chief executive Chew Thiam Keng told The Straits Times: "This action relates specifically to Series 009 (DBS-backed notes). It does not affect the other securities series for which discussions on the proposed refinancing proposal are progressing smoothly." According to The Strait Times, Ezion is in the process of restructuring six series of notes and perpetual securities totalling SGD575 million. The DBS-backed bonds are not part of the restructuring, the report says. Mr. Murarka's case is the first time that any bond holder has filed a summons against a Singapore issuer to protect his rights as a bond holder, the report notes. Ezion has previously said that it intends to launch a consent solicitation exercise by the middle of this month, in order to complete refinancing with secured lenders before November, adds The Strait Times. About Ezion Holdings Singapore-based Ezion Holdings Limited engages in investment holding and provision of management services. The Company, along with its subsidiaries, specializes in the development, ownership and chartering of offshore assets to support the offshore energy markets. Its segments include Production and maintenance support, which is engaged in owning, chartering and management of rigs and vessels involved in the production and maintenance phase of the oil and gas industry; Exploration and development support, which is engaged in owning, chartering and management of rigs and vessels involved in the exploration and development phase of the oil and gas industry, and Others, which includes assets or investments involved in renewable energy and other oil and gas related industry. The Company owns a fleet of multipurpose self- propelled service rigs. It owns a fleet of service rigs in Southeast Asia for use in offshore oil and gas industry, and offshore wind farm industry. MARCO POLO: Noteholders to Vote on Haircut, Waivers for Bonds ------------------------------------------------------------- Ann Williams at The Strait Times reports that Marco Polo Marine is seeking noteholders' approval to take a big haircut and waive key obligations for a SGD50 million series of 5.75 per cent notes due 2016. According to The Strait Times, the company is asking, among other things, that noteholders allow the company to redeem the bonds by January 2018 by paying SGD35,868 in cash and the same amount in 1.02 million shares priced at 3.5 Singapore cents per share, amounting to a combined redemption amount of SGD71,736. They will vote on the debt restructuring at a meeting to take place at 11:00 a.m. on Nov. 15 at Ocean Financial Centre, the report says. The Strait Times relates that Marco Polo said in its notice to noteholders on Oct. 24 that it has been in discussion with a group of investors to raise about SGD50 million to SGD60 million, but as part of the conditions to this, it must undertake a restructuring of all its secured and unsecured debt. As of June 30, 2017, total debt was about SGD260.8 million, comprising about SGD250 million in secured debt and SGD10.8 million in unsecured debt, the report notes. In addition, Marco Polo said it has contingent liabilities from guarantees provided in connection with the majority of the loans taken on by the group companies, The Strait Times adds. Among the many risk factors the company outlined in a separate statement, Marco Polo said it suffered net losses of SGD309.0 million for the nine months ended June 30, 2017, and expects to record net losses for the full year, The Strait Times reports. This will be mainly due to lower utilisation rates of the group's vessels and lower charter rates, decreased revenues from the shipbuilding business and various impairment charges. There cannot be any assurance that the company will be able to continue as a going concern, it said, The Strait Times relays. It added that if passed, the extraordinary resolution will be binding on all noteholders, even if a noteholder did not vote for it. This includes all claims against the company resulting from any breach of the financial covenants or any non-payment of the outstanding principal amount of the notes on the original maturity date, which will be waived if the extraordinary resolution is passed, The Strait Times adds. About Marco Polo Singapore-based Marco Polo Marine Ltd (SGX:5LY) -- http://www.marcopolomarine.com.sg/-- engages in marine logistics services. The Company's segments include Ship chartering services, which relates to charter hire activities, and Ship building and repair services, which relates to ship building and ship repair activities. Its shipping business consists of offshore support and marine logistics services, and relates to the chartering of offshore supply vessels (OSVs), which include anchor handling tug supply vessels (AHTS) for deployment in the regional waters, including the Gulf of Thailand, Malaysia, Indonesia and Australia, as well as the chartering of tugboats and barges to customers, which are engaged in the mining, commodities, construction, infrastructure and land reclamation industries. Its shipyard business relates to ship building, as well as the provision of ship maintenance, repair, outfitting and conversion services that are carried out through its shipyard in Batam, Indonesia. PRECISION CAPITAL: Moody's Withdraws B3 Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service has withdrawn Precision Capital Private Ltd.'s (PCPL) B3 corporate family rating (CFR) and its negative outlook. RATINGS RATIONALE Moody's has decided to withdraw the rating for its own business reasons. Precision Capital Private Ltd. is a subsidiary of MMI Technologies Pte. Ltd., a leading precision engineering components company for HDD manufacturers worldwide. PCPL is majority-owned by the private equity house, Kohlberg Kravis Roberts , with a total controlling interest of 73%, while the remaining 27% interest is held by the management of MMI. =============== X X X X X X X X =============== SOLOMON ISLANDS: Low Gov't Debt Burden Supports Credit Profile -------------------------------------------------------------- Moody's Investors Service says that the Solomon Islands' (B3 stable) credit profile is supported by a very low government debt burden and high debt affordability, as well as technical and financial support from donors and international organisations which enhance government funding and, to some extent, institutional capacity. Looking ahead, Moody's expects investments in mining and electricity, including the Tina River Hydropower project and Gold Ridge Mine, and an undersea cable project to support real GDP growth of around 3% through to 2021, which will help to partly offset a structural decline in logging output. Moody's analysis is contained in its just-released annual credit analysis, "Government of the Solomon Islands -- B3 Stable." It elaborates on the sovereign's credit profile in terms of "Very Low" economic strength, "Very Low (+)" institutional strength, "High (+)" fiscal strength, and "Moderate (-)" susceptibility to event risk. These are the four main analytic factors in Moody's Sovereign Bond Rating Methodology. The report constitutes an annual update to investors and is not a rating action. Moody's notes that the Solomon Islands has a narrow economic base, that depends on depleting forestry resources. This, and very low institutional strength, exacerbates the sovereign's vulnerability to sudden shocks. The country is exposed to shocks such as natural disasters and climate change. And resilience to such shocks is low because of the country's very low incomes and weak infrastructure. However, these characteristics are somewhat mitigated by low government debt levels that provide some room for government spending if necessary, and the potential for physical assistance and financial support from international partners. Moody's forecasts government debt to increase to about 12% of GDP by the end of 2018 from 10% in 2017 to fund key development projects. The government's debt burden will remain among the lowest of all rated sovereigns with consistent adherence to legislation that sets a ceiling on the debt/GDP ratio and precludes the use of borrowing to fund recurrent expenditure. Despite a very low government debt burden, fiscal space is limited and liquidity risk has risen. Wide fiscal deficits in 2016 and 2017 have resulted in a significant draw down in the government's cash reserves, eroding fiscal buffers and limiting the sovereign's fiscal flexibility. The stable outlook indicates risks to the Solomon Islands' rating are balanced. The rating could be upgraded as a result of steady diversification of the economy away from the logging sector; or significant strengthening in institutional capacity. The rating could be downgraded if there is a reversal in fiscal discipline and debt consolidation, leading to a lasting erosion in government cash reserves, and/or sharp cuts in aid from donors; or a worsening political environment that hinders policymaking and leads to lower financial and technical support from international partners, or a deterioration in the external balance sheet that would deplete foreign-exchange reserves and increased balance of payments risks. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268. *** End of Transmission ***