/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171229.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 Friday, December 29, 2017, Vol. 20, No. 258 Headlines A U S T R A L I A ABBEE PTY: First Creditors' Meeting Set for Jan. 9 BANTEX PTY: First Creditors' Meeting Set for Jan. 9 M & A GROUP: First Creditors' Meeting Set for Jan. 8 TPC (VIC): First Creditors' Meeting Set for Jan. 8 ZAKEE PTY: First Creditors' Meeting Set for Jan. 9 H O N G K O N G SEASPAN CORP: Egan-Jones Cuts Sr. Unsecured Debt Ratings to B+ I N D I A ABROAD VITRIFIED: CRISIL Assigns B+ Rating to INR21.5MM Loan ABS WHEELS: CRISIL Migrates D Rating to Not Cooperating Category AJAY ENGICONE: ICRA Moves D Rating to Not Cooperating Category ARNAV TECHNOSOFT: ICRA Moves D Rating to Not Cooperating Category BSCC INFRASTRUCTURE: CRISIL Moves B- Rating to Not Cooperating C.E. TESTING: Ind-Ra Assigns BB Issuer Rating, Outlook Stable CARAMIA GRANITO: ICRA Assigns B Rating to INR19.50cr Term Loan CASTEX TECHNOLOGIES: SBI Initiates Bankruptcy Proceedings v. Firm CRD FOODS: Ind-Ra Withdraws B+ Issuer Rating, Outlook Stable DAKSHINESWARI COLD: CRISIL Moves B Rating to Not Cooperating DASMESH MECHANICAL: CRISIL Moves B Rating to Not Cooperating GEN NEXT MOTORS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable INDIA: Egan-Jones Hikes Sr. Unsecured Debt Ratings to BB+ INDIAN ACRYLICS: Ind-Ra Lowers Issuer Rating to D, Outlook Stable JINDAL WOOD: CRISIL Migrates B+ Rating to Not Cooperating JMK JEWELS: CRISIL Migrates B+ Rating to Not Cooperating Category L B INDUSTRIES: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable LEEWAY LOGISTICS: CRISIL Moves D Rating to Not Cooperating OKARA ROADLINES: CRISIL Moves B Rating to Not Cooperating OVERSEAS CARPETS: CRISIL Moves B- Rating to Not Cooperating P G MERCANTILE: CRISIL Moves D Rating to Not Cooperating Category PRANAV CONSTRUCTION: CRISIL Moves D Rating to Not Cooperating PUNJAB SPINTEX: CRISIL Migrates D Rating to Not Cooperating RAJASTHAN CYLINDERS: CRISIL Ups Rating on INR4.5MM Loan to B+ RELIANCE COMMUNICATIONS: To Exit Debt Plan With Zero Write-Offs S K ELITE: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating SAA VISHNU: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating SERVOCONTROLS AEROSPACE: ICRA Moves B- Rating to Not Cooperating SHIV GANGA: CRISIL Migrates B- Rating to Not Cooperating Category SHRI DAKSHINESHWARI: Ind-Ra Assigns BB Issuer Rating STANDARD PAPER: CRISIL Moves B+ Rating to Not Cooperating STRONG BONDS: CRISIL Assigns B+ Rating to INR4MM Cash Loan SWAMI HITECH: CRISIL Migrates B Rating to Not Cooperating TOSHNIWAL ENTERPRISES: Ind-Ra Assigns BB+ Rating, Outlook Stable ULTRALIFT INDIA: ICRA Assigns B+ Rating to INR8cr Term Loan UNISUN POWER: CRISIL Assigns B+ Rating to INR1.66MM LT Loan USHDEV INTERNATIONAL: SBI Initiates Insolvency Process v. Firm V.M. BAKERY: ICRA Revises Rating on INR5.40cr Term Loan to B- VIKRAM HOSPITAL: ICRA Hikes Rating on INR30cr Loan to B YAMUNA BIO: CRISIL Moves B+ Rating to Not Cooperating Category J A P A N DTC ONE: S&P Affirms BB(sf) Issuer Rating on Class E Notes KOBE STEEL: Egan-Jones Hikes Sr. Unsecured Ratings to BB+ SHARP CORP: Egan-Jones Hikes LC Sr. Unsecured Debt Rating to B- SHOWA SHELL: Egan-Jones Hikes LC Sr. Unsecured Rating to BB+ TOSHIBA CORP: Faces Class Action Over Scrapped US Nuclear Project M A L A Y S I A SABAH ELECTRICITY: Talks Continue as Firm Nears Insolvency N E W Z E A L A N D MOSSGREEN PTY: Administration No Effect on Auckland Auction House - - - - - ================= A U S T R A L I A ================= ABBEE PTY: First Creditors' Meeting Set for Jan. 9 -------------------------------------------------- A first meeting of the creditors in the proceedings of Abbee Pty Ltd will be held at CPA Australia, Level 29, 10 Eagle Street, in Brisbane, Queensland, on Jan. 9, 2018, at 11:00 a.m. David Solomons and Riad Tayeh of de Vries Tayeh were appointed as administrators of Abbee Pty on Dec. 27, 2017. BANTEX PTY: First Creditors' Meeting Set for Jan. 9 --------------------------------------------------- A first meeting of the creditors in the proceedings of Bantex Pty Ltd will be held Level 3, 95 Macquarie Street, in Parramatta, NSW, on Jan. 9, 2018, at 10:00 a.m. Riad Tayeh and Suelen McCallum of de Vries Tayeh were appointed as administrators of Bantex Pty on Dec. 27, 2017. M & A GROUP: First Creditors' Meeting Set for Jan. 8 ---------------------------------------------------- A first meeting of the creditors in the proceedings of M & A Group Pty Ltd will be held at the offices of Deloitte Financial Advisory Pty Ltd, Eclipse Tower, Level 19, 60 Station Street, in Parramatta, NSW, on Jan. 8, 2018, at 11:00 a.m. Neil Robert Cussen of Deloitte Financial was appointed as administrator of M & A Group on Dec. 22, 2017. TPC (VIC): First Creditors' Meeting Set for Jan. 8 -------------------------------------------------- A first meeting of the creditors in the proceedings of TPC (VIC) Pty. Ltd. will be held at the offices of Amos Insolvency, 25/ 185 Airds Road, in Leumeah, NSW, on Jan. 8, 2018, at 11:00 a.m. Peter Andrew Amos of Amos Insolvency was appointed as administrator of TPC (VIC) on Dec. 22, 2017. ZAKEE PTY: First Creditors' Meeting Set for Jan. 9 -------------------------------------------------- A first meeting of the creditors in the proceedings of Zakee Pty Ltd will be held Level 29, 10 Eagle Street, in Brisbane, Queensland, on Jan. 9, 2018, at 11:30 a.m. David Solomons and Riad Tayeh of de Vries Tayeh were appointed as administrators of Zakee Pty on Dec. 27, 2017. ================ H O N G K O N G ================ SEASPAN CORP: Egan-Jones Cuts Sr. Unsecured Debt Ratings to B+ -------------------------------------------------------------- Egan-Jones Ratings Company, on Oct. 10, 2017, lowered the foreign currency and local currency senior unsecured ratings on debt issued by Seaspan Corp. to B+ from BB-. Headquartered in Hong Kong, Seaspan Corp. operates a fleet of containerships. The Company's ships are chartered to customers on a long-term fixed-rate basis. ========= I N D I A ========= ABROAD VITRIFIED: CRISIL Assigns B+ Rating to INR21.5MM Loan ------------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Abroad Vitrified Private Limited (AVPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 21.5 CRISIL B+/Stable Bank Guarantee 3 CRISIL A4 Cash Credit 8 CRISIL B+/Stable The ratings reflect exposure to risks related to project implementation and to timely stabilisation and commensurate ramp- up in sales during its early stage of operations. The ratings also factor in expectation of an average financial risk profile because of debt-funded project. These weaknesses are partly offset by partners' extensive experience and funding support, and strategic location of its plant, ensuring easy availability of raw material and labour. Key Rating Drivers & Detailed Description Weaknesses * Exposure to timely project implementation and stabilisation Manufacturing of vitrified tiles by AVPL is expected to commence from April 2018. Timely implementation, stabilisation, and commensurate ramp-up in sales during the early stages of its proposed project, will remain critical, and hence, be monitored closely. * Average financial risk profile: Financial risk profile may remain average on account of debt-funded capital expenditure. Project gearing is expected to be at 2-2.5 times in fiscal 2019. Strengths * Promoter's extensive experience: Benefits from the extensive experience the promoter's, who have been in the building product industry over a decade, should continue to support the business risk profile in its early stage of operations. * Strategic location of plant: Manufacturing facility of AVPL is at Morbi (Gujarat) which is tile manufacturing hub which ensures easy availability of raw materials and labour. Outlook: Stable CRISIL believes AVPL will benefit from the promoters' extensive experience and funding support over the medium term. The outlook may be revised to 'Positive' if timely implementation and stabilisation of the project leads to anticipated revenue, profitability, and cash accrual during the early stage of operations. The outlook may be revised to 'Negative' if delay in implementation or stabilisation of the project leads to lower revenue, cash accrual, or stretch in working capital cycle weakens the financial risk profile, especially liquidity. Incorporated in 2017, AVPL is establishing a greenfield project for manufacturing vitrified tiles at Morbi, with an installed capacity of 90,000 tonne per annum. The facility is expected to start commercial operations from April 2018. ABS WHEELS: CRISIL Migrates D Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with ABS Wheels Private Limited (ABS) for obtaining information through letters and emails dated September 21, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.25 CRISIL D (Issuer Not Cooperating; Rating Migrated) Cash Credit 0.75 CRISIL D (Issuer Not Cooperating; Rating Migrated) Proposed Long Term Bank Loan Facility 2.75 CRISIL D (Issuer Not Cooperating; Rating Migrated) Term Loan 4.25 CRISIL D (Issuer Not Cooperating; Rating Migrated) 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 ABS Wheels Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ABS Wheels Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of ABS Wheels Private Limited to CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in July 2013 and promoted by Mr. Arshad Shaikh and his family members, ABS has a Volkswagen passenger car dealership and operates a 3S (sales-service-spares) showroom in Solapur, Maharashtra. The company is the sole authorised Volkswagen dealer for Solapur, Osmanabad, and Latur; Maharashtra. Commercial operations began from March 2014. AJAY ENGICONE: ICRA Moves D Rating to Not Cooperating Category -------------------------------------------------------------- ICRA Ratings has moved the long term and short term ratings for the bank facilities of Ajay Engicone Private Limited (AEPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 0.28 [ICRA]D ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund based-Cash 1.25 [ICRA]D ISSUER NOT Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non fund based- 8.47 [ICRA]D ISSUER NOT Bank guarantee COOPERATING; Rating moved to the 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in March 1997, AEPL constructs and maintains roads, dams, canals and bridges in the states of Jharkhand and Bihar. The company is registered as a Class-I contractor with the Road Construction Department, Jharkhand. In 1997, it took over the entire business of the partnership firm - M/s Ajay Construction, which had been in the same line of business since 1982. ARNAV TECHNOSOFT: ICRA Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings has moved the long term ratings for the bank facilities of Arnav Technosoft Private Limited (ATPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash 15.0 [ICRA]D ISSUER NOT Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in 2007, ATPL is a real estate developer and is executing its maiden project in Noida (Uttar Pradesh). The project involves construction and leasing of a corporate office building in Sector 16 A in Noida. ATPL is part of the SDS group which is engaged into real estate construction spanning across group housing projects, integrated townships, commercial space and IT park in Noida and Greater Noida regions of Uttar Pradesh. The group is headed by Mr. Deepak Bansal and Mrs. Anshul Bansal. BSCC INFRASTRUCTURE: CRISIL Moves B- Rating to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has been consistently following up with BSCC Infrastructure Private Limited (BSCC) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 1.5 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Long Term Loan .5 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term Bank Loan Facility 13 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) '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 BSCC Infrastructure Private Limitedwhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on BSCC Infrastructure Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of BSCC Infrastructure Private Limited to CRISIL B- /Stable/CRISIL A4 Issuer not cooperating'. BSCC, promoted by Mr Bharatbhai S Chaudhary, is a civil contractor based in Mehsana, Gujarat. It was originally set up as a partnership firm, which was reconstituted as a private limitedcompany in 2011. The company primarily undertakes construction works, but is also a distributor of BSNL pre-paid cards and SIM cards (contributing revenue of INR25-35 million per fiscal). C.E. TESTING: Ind-Ra Assigns BB Issuer Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned C.E. Testing Company Pvt. Ltd. (CETEST) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit assigned with IND BB/Stable rating; -- INR70 mil. Non-fund-based working capital limit assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect CETEST's small scale of operations as reflected by revenue of INR284 million in FY17 (FY16: INR220 million). The ratings are also constrained by the company's tight liquidity position as indicated by 99.42% maximum utilisation of its working capital limits during the six months ended November 2017. The company had an elongated net working capital cycle of 277 days in FY17 (FY16: 329 days) owing to a long inventory holding period of 233 days (276 days). However, the ratings are supported by CETEST's strong credit metrics as reflected by gross interest coverage (operating EBITDA/gross interest expense) of 5.4x in FY17 (FY16: 3.9x) and net financial leverage (total adjusted net debt/operating EBITDAR) of 0.7x (1.1x). The improvement in the credit metrics was due to an improvement in operating margin to 16.6% in FY17 (FY16: 10.9%), resulting from decrease in employee benefit expenses. The ratings also derive support from the promoter's experience of close to three decades in the soil testing business. RATING SENSITIVITIES Positive: An improvement in the scale of operations while maintaining the credit metrics will lead to a positive rating action. Negative: A decline in the scale of operations along with deterioration in the operating profitability will lead to a negative rating action. COMPANY PROFILE CETEST provides engineering solutions. It was founded by Mr Madhusudan Nayak in 1985 as a soil testing firm. CETEST is also a member of TPF Group, a multinational organisation, headquartered in Brussels (Belgium). TPF is engaged in the field of airports, buildings, hospitals, bridges, flyovers, roads, viaducts, industrial plants, waste water plants, among others. CARAMIA GRANITO: ICRA Assigns B Rating to INR19.50cr Term Loan -------------------------------------------------------------- ICRA Ratings has assigned a long-term rating of [ICRA]B on the INR19.50-crore term loans and the INR9.00-crore cash credit facility of Caramia Granito LLP. ICRA has also assigned a short- term rating of [ICRA]A4 on the INR1.50-crore non-fund based facilities of CGL. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Term Loan 19.50 [ICRA]B (Stable); Assigned Fund-based Working Capital Facilities 9.00 [ICRA]B (Stable); Assigned Non-fund Based Bank Guarantee 1.50 [ICRA]A4; Assigned Rationale The assigned ratings are constrained by the nascent stage of the firm's operations, as it is still in the project stage and the risks associated with the stabilisation of the plant, as per the expected operating parameters. The ratings also remain constrained by the highly fragmented nature of the tiles industry, resulting in intense competition. Furthermore, the ratings also take note of the cyclical nature of the real estate industry, which is the main consuming sector; and the exposure of the firm's profitability to volatility in raw material and gas prices as well as to adverse foreign exchange fluctuations. The assigned ratings also take into account the firm's financial profile, which is expected to remain weak in the near term, given the debt-funded nature of the project (debt to equity ratio of 1.96 times) and impending debt repayment. The assigned ratings, however, favourably factor in the experience of the promoters in the ceramic industry, the locational advantage of the firm for raw material procurement by virtue of its presence in Morbi (Gujarat). The ratings derive comfort from the benefits derived from its associate concerns, in terms of marketing and distribution. Outlook: Stable ICRA believes Caramia Granito LLP will continue to benefit from extensive industry experience of its promoters. The outlook may be revised to 'Positive' if timely implementation of project and stabilisation of operations, leads to higher cash accrual during the initial phase. The outlook may be revised to 'Negative' if delayed project implementation, and/or slower ramp-up in sales and accrual, or sizeable working capital requirement, weakens the financial risk profile, especially liquidity. Key Rating Drivers Credit strengths * Extensive experience of the promoters in the ceramic industry: The promoters have an extensive experience of close to a decade; vide their association with other companies in the ceramic industry. The commissioning of CGL would enable the promoter Group to enter into a new product segment, of glazed vitrified floor tiles, and would benefit the firm from the dealer network and customer base of the associate companies. * Proximity to raw material sources: The main raw materials required by CGL are clay mineral, natural minerals such as feldspar, that are used to lower the firing temperature, chemicals, and additives required for the shaping process. These raw materials are abundantly available in Gujarat and Rajasthan. The presence of the manufacturing plant in the ceramic belt of Rajkot, in Gujarat, will benefit the firm in terms of uninterrupted supply of raw material and allow savings on the transportation cost. Credit challenges * Risks associated with stabilisation and successful scale up of operations: Being in a nascent stage, with the operations yet to commission (expected from April, 2018), the firm remains exposed to the risks associated with stabilisation and successful scale- up of operations, as per the expected parameters. Moreover, the debt repayments, coupled with the long gestation period, are likely to keep the credit profile constrained over the near term. The timely commissioning of operations, without any significant cost overruns, would remain a key rating sensitivity. * Intense competition and fragmented industry structure: The ceramic industry is highly fragmented with competition from both the organised and the unorganised segments, apart from imports. The large number of players in the unorganised segment, most of whom are based in Gujarat and operate with low-cost structures, create a pressure on the price. * Vulnerability of profitability and cash flows to cyclicality inherent in the real estate industry: The real estate industry is the key end-user for vitrified tiles. Hence, the profitability and cash flows are expected to remain vulnerable to the inherent cyclicality of the real estate industry. * Profitability to remain susceptible to volatility in raw material and fuel prices: Raw material and fuel are the two major components determining the cost competitiveness for the ceramic industry. The firm can, however, exercise little control over the prices of key inputs such as natural gas and raw materials. Thus, the margins are expected to remain exposed to the movement in raw material and gas prices and its ability to pass on any upward movement to the customers. Caramia Granito LLP (CGL), incorporated in April, 2017, is setting up a Greenfield project at Morbi in Gujarat to manufacture medium-sized soluble salt and glazed vitrified tiles. The unit has an estimated installed capacity of producing 56,700 metric tonnes of tiles per annum. CASTEX TECHNOLOGIES: SBI Initiates Bankruptcy Proceedings v. Firm ----------------------------------------------------------------- The Economic Times reports that Castex Technologies, a subsidiary of automotive component maker Amtek Auto with debt of over INR6,000 crore, has been admitted to bankruptcy court. State Bank of India, the lead bank, initiated bankruptcy proceedings in the Mumbai bench of the National Company Law Tribunal (NCLT), ET discloses. The report relates that Castex Technologies, a provider of iron cast auto components, is among 29 companies listed by the Reserve Bank of India that were required to be restructured by banks before December 13, failing which they would have to be referred to bankruptcy court by December 31. Parent company Amtex Auto was also admitted to bankruptcy court following the RBI's directions, ET notes. According to the report, the NCLT admitted Castex Technologies for corporate insolvency resolution process on December 20 and appointed Dinkar T Venkatasubramanian as the interim resolution professional. Venkatasubramanian, who is a partner at consulting firm EY, is also the resolution professional for Amtek Auto. State Bank of India had granted loans totalling INR1,191 crore to Castex Technologies, ET says. The company had defaulted on INR572 crore as of October 9, 2017, the bank informed the court. ET notes that the bank had attempted to revive the company by putting in place a corrective action plan in March 2016. As per the restructuring package, a joint lenders forum provided INR1,667.5 crore for capital expenditure, to shore up the company's net worth and to refinance a term loan amounting to INR920.8 crore. NCLT, while admitting Castex Technologies, pointed out that even after granting sufficient time, the corporate debtor had not replied or objected to the notice issued by the lender, according to ET. New Delhi-based Castex Technologies, which has plants in Haryana, Himachal Pradesh and Rajasthan, reported a loss of INR1,044 crore in 2016-17 and a loss of INR171crore a year earlier, ET discloses. Promoter Arvind Dham, who had given a personal guarantee on the loan, has a 46% stake in Castex Technologies, the report notes. CRD FOODS: Ind-Ra Withdraws B+ Issuer Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has withdrawn CRD Foods Private Limited's Long-Term Issuer Rating of 'IND B+'. The Outlook was Stable. The instrument-wise rating actions are: -- INR100 mil. Fund-based working capital limit withdrawn with WD rating; -- INR178 mil. Term loan due on June 2024 withdrawn with WD rating; and -- INR100 mil. Proposed fund-based working capital limits withdrawn with WD rating. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings for the bank loans based on receipt of a no-objection certificate from the lender. This is consistent with The Securities and Exchange Board of India's circular dated 31 March 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for CRD. COMPANY PROFILE Incorporated in September 2010, CRD operates a cold storage unit in Mathura, Uttar Pradesh. The unit commenced operations in December 2016. The total storage capacity of the unit is 5,500 million tonnes. DAKSHINESWARI COLD: CRISIL Moves B Rating to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Dakshineswari Cold Storage Private Limited (DCSPL) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .08 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit .90 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Pledge Loan 2.02 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 1.75 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) 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 Dakshineswari Cold Storage Private Limitedwhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Dakshineswari Cold Storage Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Dakshineswari Cold Storage Private Limited to CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 1997 as a private limited company, DCSPL provides cold storage services to farmers and traders in Hooghly (West Bengal), where it has a cold storage unit. DCSPL is promoted by Mr. Manoranjan Ghosh, who looks after the day-to-day operations of the company. DASMESH MECHANICAL: CRISIL Moves B Rating to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Dasmesh Mechanical Works Private Limited (DMWPL) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Letter of Credit .25 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Term Loan 1.45 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) 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 Dasmesh Mechanical Works Private Limitedwhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Dasmesh Mechanical Works Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Dasmesh Mechanical Works Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. DMWPL was incorporated by Mr Amar Singh and his family members in 2010, to take over the business of their partnership firm, Dasmesh Mechanical Works. The company manufactures harvester combines and other farm equipment. Its manufacturing facility is in Malerkotla, Punjab. GEN NEXT MOTORS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Gen Next Motors Ltd's (GNML Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR53.45 mil. (reduced from INR70 mil.) Term loan due on May 1, 2021 affirmed with IND BB+/Stable rating; -- INR150 mil. Fund-based limits affirmed with IND BB+/Stable rating. KEY RATING DRIVERS The affirmation reflects GNML's continued moderate credit metrics and liquidity position. Gross interest coverage (operating EBITDA/gross interest expense) was almost stable at 1.63x in FY17 (FY16:1.61x), while net financial leverage (total adjusted net debt/operating EBITDAR) deteriorated to 6.9x (5.9x) owing to lower EBITDA level than net debt. Operating margins declined to 6.9% in FY17 (FY16: 7.3%) owing to an increase in administrative and other expenses. The company's average use of the fund-based limits was 98.19% during the 12 months ended November 2017. Revenue grew 3% yoy to INR2,429 million in FY17 due to an increase in sales of low priced model. However, the scale of operations continued to be moderate. The ratings, however, continue to benefit from GNML, being the sole authorised dealer of Renault India Pvt. Ltd. in Mumbai, Maharashtra and the promoter's experience of more than a decade in operating vehicle showroom and service station. RATING SENSITIVITIES Positive: A positive rating action could result from a substantial improvement in the operating margin leading to a sustained improvement in the credit metrics. Negative: A negative rating action could result from a substantial deterioration in the credit metrics. COMPANY PROFILE GNML was incorporated in 2011 as an authorised dealer of Renault passenger cars in Mumbai. The company is promoted by Mumbai-based Mr. Sumit Vinod Gupta and his family. It operates six showrooms and five workshops in and around Mumbai. INDIA: Egan-Jones Hikes Sr. Unsecured Debt Ratings to BB+ --------------------------------------------------------- Egan-Jones Ratings Company, on Nov. 14, 2017, raised the foreign currency and local currency senior unsecured ratings on debt issued by the Republic of India to BB+ from BBB-. The Republic of India is country in South Asia. It is the seventh-largest country by area, the second-most populous country (with over 1.2 billion people), and the most populous democracy in the world. INDIAN ACRYLICS: Ind-Ra Lowers Issuer Rating to D, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Indian Acrylics Limited's (IAL) Long-Term Issuer Rating to 'IND D' from 'IND BBB-'. The Outlook was Stable. The instrument-wise rating actions are: -- INR907.9 mil. Term loans (Long-term) due on March 31, 2024 assigned with IND D rating; -- INR300 mil. (increased from INR230 mil.) Fund-based working capital facilities (Long-term/Short-term) downgraded with IND C/IND A4 rating; -- INR1,892.5 mil. (increased from INR1,797.5 mil.) Non-fund- based working capital facilities (Long-term/Short-term downgraded with IND D rating. KEY RATING DRIVERS The downgrade reflects delays in term debt servicing and letter of credit payments by IAL during the six months ended November 2017, due to tight liquidity on account of cash flow mismatch led by ongoing capex and increase in working capital requirements. RATING SENSITIVITIES Positive: Timely debt servicing for a period of at least three consecutive months could result in a positive rating action. COMPANY PROFILE Incorporated in 1986, IAL manufactures acrylic fibre at its 42,000mtpa facility in Sangrur, Punjab. The company has the largest acrylic fibre manufacturing facility in India. It has installed 28,632 spindles for manufacturing worsted and modified cotton. JINDAL WOOD: CRISIL Migrates B+ Rating to Not Cooperating --------------------------------------------------------- CRISIL Ratings has been consistently following up with Jindal Wood Products Private Limited (JWPPL) for obtaining information through letters and emails dated September 14, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Letter of Credit 17 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Packing Credit 3 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) 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 Jindal Wood Products Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Jindal Wood Products Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Jindal Wood Products Private Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 1990, JWPPL processes and trades in timber logs mainly from teakwood and hardwood. Its plant is at Kandla, Gujarat. JMK JEWELS: CRISIL Migrates B+ Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with JMK Jewels Private Limited (JJPL) for obtaining information through letters and emails dated September 14, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) 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 JMK Jewels Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on JMK Jewels Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of JMK Jewels Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. JJPL was set up by Mr Ashwini Singla in 2005 with the name of Harison Impex for exporting diamond and gold jewellery. The company was renamed Lakshay Ornaments Pvt Ltd in 2008, and got its current name in January 2016. It gets diamond and gold jewellery manufactured on jobwork basis, and sells to showrooms and other jewelers in and around Delhi. L B INDUSTRIES: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed L B Industries Private Limited's (LBPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR60 mil. Fund-based working capital limit affirmed with IND BB-/Stable/IND A4+ rating; and -- INR420 mil. Non-fund-based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The ratings continue to reflect LBPL's thin operating margin and weak, albeit improved, credit metrics. In FY17, EBITDA margin was 1.62% (FY16: 2.22%) on account of the trading nature of the business. During the period, interest coverage (operating EBITDA/gross interest expense) was 1.30x (FY16: 1.25x) and financial leverage (total adjusted debt/operating EBITDAR) was 3.79x (3.87x). The improvement in the credit metrics was driven by lower utilisation of short-term debt and, thus, lower interest expenses. The ratings, however, are supported by significant revenue growth to INR2,427.14 million in FY17 from INR1,863.38 million in FY16, driven by a rise in the contribution from the agro commodities trading and consumer goods segments. The ratings continue to be supported by the promoter's experience of more than three and half decades in the trading of various flooring products, fast-moving consumer goods and commodities, and the firm's moderate liquidity. Its average working capital limit utilisation of 92.97% during the 15 months ended November 2017. RATING SENSITIVITIES Negative: Any significant decline in EBITDA margin, leading to any deterioration in the credit metrics will be negative for the ratings. Positive: Any significant improvement in EBITDA margin, leading to any improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in 2008, LBPL is engaged in the trading of various flooring products and edible oils. LBPL is a part of Laxmidas Brothers Group, which was established in 1955 and is engaged in diversified business activities such as trading of plywood, flooring, deck wood, edible oils and others. In December 2013, the firm started trading various commodities such as palm oil and sugar. In 2015, it ventured into third-party manufacturing of cooking spray oil under its own brand name. LEEWAY LOGISTICS: CRISIL Moves D Rating to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Leeway Logistics Limited (Leeway) for obtaining information through letters and emails dated September 14, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 153.25 CRISIL D (Issuer Not Cooperating; Rating Migrated) Letter of Credit 25.00 CRISIL D (Issuer Not Cooperating; Rating Migrated) Letter of credit 5.50 CRISIL D (Issuer Not & Bank Guarantee Cooperating; Rating Migrated) Proposed Cash 26.25 CRISIL D (Issuer Not Credit Limit Cooperating; Rating Migrated) Proposed Letter 20 CRISIL D (Issuer Not of Credit & Bank Cooperating; Rating Migrated) Guarantee 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 Leeway Logistics Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Leeway Logistics Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Leeway Logistics Limited to CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Leeway, established in March 2010, and headquartered in Mumbai, is an integrated logistics solutions provider of end-to-end supply chain solutions. The company also offers people-movement solutions to corporate entities. Operations are managed by a professional management team, headed by Mr Sanjay Sinha, its promoter and managing director. OKARA ROADLINES: CRISIL Moves B Rating to Not Cooperating --------------------------------------------------------- CRISIL Ratings has been consistently following up with Okara Roadlines (Okara) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft 5.8 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 4.2 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) 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 Okara Roadlines, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Okara Roadlines is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Okara Roadlines to 'CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Okara was set up in 1989 and taken over by the existing management in 2000. It is currently being managed by Mr Wadhwa and his son, Mr Jigyasu Wadhwa. The Delhi-based firm provides transportation services to various industries. OVERSEAS CARPETS: CRISIL Moves B- Rating to Not Cooperating ----------------------------------------------------------- CRISIL Ratings has been consistently following up with Overseas Carpets Limited. (OCL) for obtaining information through letters and emails dated September 14, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 18 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Cash Credit 7 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Export Packing 10 CRISIL B-/Stable (Issuer Not Credit Cooperating; Rating Migrated) 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 Overseas Carpets Limited., which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Overseas Carpets Limited. is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Overseas Carpets Limited. to 'CRISIL B-/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 1981, OCL exports carpets. It is promoted by Mr. O P Garg. OCL is the flagship company of the Garg group, which has interest in carpets and handicrafts exports, travel services, and manufacturing of compact discs. P G MERCANTILE: CRISIL Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with P G Mercantile Private Limited (PGMPL) for obtaining information through letters and emails dated September 12, 2017 and October 26, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Issuer Not Cooperating; Rating Migrated) Foreign Exchange 3 CRISIL D (Issuer Not Forward Cooperating; Rating Migrated) Letter of Credit 60 CRISIL D (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 79.89 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 23.61 CRISIL D (Issuer Not Cooperating; Rating Migrated) 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 G Mercantile Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on P G Mercantile Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of P G Mercantile Private Limitedto 'CRISIL D / CRISIL D Issuer not cooperating'. Incorporated in 2003 and promoted by Mr. Prateek Gupta, PGMPL primarily trades in ferrous and non-ferrous metals. The company also has two windmills (one each in Maharashtra and Tamil Nadu) with total capacity of 3.7 megawatt. Mr. Gupta is also the vice- chairman of Ushdev International Ltd, which is in the same business. PRANAV CONSTRUCTION: CRISIL Moves D Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Pranav Construction Systems Private Limited (PCSPL) for obtaining information through letters and emails dated September 14, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 16.22 CRISIL D (Issuer Not Cooperating; Rating Migrated) Cash Credit 19.11 CRISIL D (Issuer Not Cooperating; Rating Migrated) Export Packing Credit 6.63 CRISIL D (Issuer Not Cooperating; Rating Migrated) Funded Interest Term Loan 6.08 CRISIL D (Issuer Not Cooperating; Rating Migrated) Letter of Credit 3 CRISIL D (Issuer Not Cooperating; Rating Migrated) Working Capital Term Loan 21.49 CRISIL D (Issuer Not Cooperating; Rating Migrated) 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 Pranav Construction Systems Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Pranav Construction Systems Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Pranav Construction Systems Private Limited to CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 2003, PCSPL provides formwork, false work and scaffolding which find application in construction/infrastructure sector. The company has been set up by Mr. Sushil Sahani and its manufacturing facilities are located at Kopar-Khairane and Badlapur (both in Maharashtra). PUNJAB SPINTEX: CRISIL Migrates D Rating to Not Cooperating ----------------------------------------------------------- CRISIL Ratings has been consistently following up with Punjab Spintex Limited (PSL) for obtaining information through letters and emails dated September 14, 2017 and October 26, 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 Migrated) Cash Credit 25 CRISIL D (Issuer Not Cooperating; Rating Migrated) Corporate Loan 5 CRISIL D (Issuer Not Cooperating; Rating Migrated) Inventory Funding Facility 10 CRISIL D (Issuer Not Cooperating; Rating Migrated) Standby Line of Credit 2.5 CRISIL D (Issuer Not Cooperating; Rating Migrated) Term Loan 5 CRISIL D (Issuer Not Cooperating; Rating Migrated) 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 Punjab Spintex Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Punjab Spintex Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Punjab Spintex Limited to CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in December 2006 and promoted by Mr. Suresh Kumar and three of his business associates, PSL gins cotton and manufactures cotton yarn (in counts of 20s-30s). Operations began in December 2007. RAJASTHAN CYLINDERS: CRISIL Ups Rating on INR4.5MM Loan to B+ ------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of Rajasthan Cylinders and Containers Limited (RCCL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and reaffirmed its 'CRISIL A4' rating on the company's short-term bank facility Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .5 CRISIL A4 (Reaffirmed) Cash Credit 4.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects improvement in the company's business performance with increase in sales from INR54.30 crore in fiscal 2016 to INR77.58 crore in fiscal 2017, because of orders received in southern India. Operating margin improved from 0.4% to 3.1% due to reduction in fixed cost per unit. Also, financial risk profile remains moderate, with reduced bank debt. Liquidity is supported by funds infused by promoters and associated companies by way of unsecured loans and inter-corporate deposits when required. The ratings reflect exposure to risks inherent in tender-based business and volatile profitability. These weaknesses are partially offset by the extensive experience of the promoters in manufacturing liquefied petroleum gas (LPG) cylinders, valves, and regulators, and reduced debt. Key Rating Drivers & Detailed Description Weakness * Fluctuating operating margin: RCCL caters to large oil- marketing companies (OMCs) such as Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), and has limited bargaining power with the customers. Furthermore, the commodity nature of its product makes RCCL vulnerable to volatility in raw material prices, as raw material accounts for 75-80% of net sales. Though increase in raw material cost is passed on to OMCs as per the escalation clause in tenders, the company remains exposed to fluctuations in raw material price to the extent of inventory of 30 days. Also, as per tender conditions, it is allowed to procure raw material only from approved vendors. * Exposure to risks inherent in tender-based business and customer concentration in revenue: RCCL manufactures LPG cylinders for IOCL, BPCL, and HPCL, which account for almost 90% of its revenue. The company gets orders through tenders and operates in a highly fragmented industry, which limits its bargaining power, impacting its profitability. Furthermore, the commodity nature of its product makes RCCL vulnerable to volatility in raw material prices. Strengths * Extensive experience of the promoters in manufacturing domestic LPG cylinders: The Bajoria family entered the cylinder industry in the 1980s and initially traded in gas cylinders. Over the years, the promoters have developed healthy relationships with various suppliers, and are actively involved in the business. * Low Gearing: Gearing of RCCL has remained on lower side at 0.4 times. The same is due to moderate net worth levels of Rs.22.55 Cr. In medium term also gearing is expected to remain at lower side because of absence of any debt funded capex. Outlook: Stable CRISIL believes RCCL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if there is higher-than-expected profitability and cash accrual. The outlook may be revised to 'Negative' if consistent pressure on revenue or profitability or sizeable working capital requirement weakens financial risk profile, especially liquidity. Incorporated in 1980 and promoted by Mr. Gopal Bajoria and Mr Avinash Bajoria, RCCL manufactures LPG cylinders, valves, and regulators at its facility in Jaipur. The company also undertakes contracts from HPCL, BPCL, and IOCL, and bottling work for Super Gas. RCCL is listed at Bombay Stock Exchange. RELIANCE COMMUNICATIONS: To Exit Debt Plan With Zero Write-Offs --------------------------------------------------------------- Mahima Kapoor at BloombergQuint reports that Reliance Communications Ltd. said it will exit the Strategic Debt Restructuring plan with a zero write-off to lenders. Instead, the company will reduce debt by monetising its wireless business and selling land parcels at Dhirubhai Ambani Knowledge City (DAKC), Chairman Anil Ambani said in a press conference on Dec. 27, BloombergQuint relates. None of the debt will be converted into equity under the new plan. BloombergQuint relates that under a Strategic Debt Restructuring (SDR) plan agreed upon in June, lenders were to convert at least INR7,000 crore in debt into a majority equity holding. That plan now stands aborted, days ahead of the deadline for completing the conversion. The company has debt of nearly INR45,000 crore. According to BloombergQuint, the company launched the process to monetise a part of its wireless operations in October this year and expects these transactions to close between January to March, Ambani said. It will also form a special purpose vehicle for its real estate assets under which it will develop 20 million square feet space on 125 acre over 10 years. RCom plans to cut debt by INR25,000 crore through prepayment after the asset monetisation and transfer of spectrum liabilities, the report says. INR10,000 crore will go towards non-recourse, long term debt to the SPV set up to develop the land parcels at DAKC. Lenders, including Chinese banks, have agreed to the debt resolution plan, Ambani said while adding that the company intends to resolve issues with unsecured creditors in a few weeks as well, BloombergQuint relays. Indian banks' telecom exposure will be reduced by more than INR21,000 crore. While Ambani did not disclose the binding bids received for Reliance Communications' assets, Reliance Jio is among those in the fray, said one person familiar with the plan, BloombergQuint states. Meantime, the Chinese lenders are likely to get significant shareholding in the special purpose vehicle set up to develop the Dhirubhai Ambani Knowledge City land, said the person speaking on condition of anonymity. Reliance Communications owes its Chinese lenders, including CDB, ICBC Bank and Export Import Bank of China (CEXIM), more than INR13,000 crore, BloombergQuint reported in November. The new debt resolution plan provided by Ambani is not very different from the previous one, and is just a way of "kicking the can down the road", Nitin Soni, director at Fitch Ratings, told BloombergQuint in an interaction. "I am also not really sure who is going to buy their assets," he said. RCom has had a "long standing problem" of coming up with resolution plans followed by patchy implementation, according to Ambani, BloombergQuint relays. This has been going on for the last two years and has prompted Fitch to suspend its coverage on the company, he added. Ambani in the press briefing said the company is already undergoing a 'robust' transformation to a business-business services company, according to BloombergQuint. The new RCom will consist of enterprise, GCX, the data center business and the 4G sharing business. 50 percent of its revenue will come from overseas operation, Ambani said. Even in this business, the group is in the middle of bringing in a strategic investor at an enterprise value of INR15,000 crore, Ambani said. He added that nine non binding bids have been received from 'global strategics,' BloombergQuint relates. About Reliance Communications Based in Mumbai, India, Reliance Communications Ltd (BOM:532712) -- http://www.rcom.co.in/Rcom/personal/home/index.html-- is a telecommunications service provider. The Company operates through two segments: India Operations and Global Operations. India operations segment comprises wireless telecommunications services to retail customers through global system for mobile communication (GSM) technology-based networks across India; voice, long distance services and broadband access to enterprise customers; managed Internet data center services, and direct-to- home (DTH) business. Global operations comprise Carrier, Enterprise and Consumer Business units. It provides carrier's carrier voice, carrier's carrier bandwidth, enterprise data and consumer voice services. The Company owns and operates Internet protocol (IP) enabled connectivity infrastructure, comprising over 280,000 kilometers of fiber optic cable systems in India, the United States, Europe, Middle East and the Asia Pacific region. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 22, 2017, Moody's Investors Service has withdrawn Reliance Communications Limited's (RCOM) Ca corporate family rating (CFR) and its negative outlook. At the same time, Moody's has also withdrawn the Ca rating on RCOM's senior secured notes. On Nov. 6, 2017, RCOM announced that pursuant to the invocation of Strategic Debt Restructuring (SDR) scheme by the lenders of the company as per the Reserve Bank of India guidelines agreed in June 2017, the company is under a debt standstill period until December 2018, as it looks to complete a corporate and debt restructuring. Accordingly, for the time being, no payment of interest and/or principal is being made to any RCOM lenders and/or bondholders. S K ELITE: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated S.K. Elite Industries (India) Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR400 mil. Overdraft term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Dec. 30, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SKEL (formerly S K Automotives Ltd.) was incorporated in 1996. After exiting Bajaj Auto Limited's dealership business in 2010, it revived revenue from its existing land assets (73,253.99 square feet) to operate as a property lease rental company. SAA VISHNU: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Saa Vishnu Bakers Private Limited's (SVBPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based limits migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; -- INR50 mil. Proposed fund-based limits migrated to non- cooperating category with Provisional IND BB+(ISSUER NOT COOPERATING) rating; and -- INR118.24 mil. Term loan migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Nov. 23, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2009, SVBPL manufactures biscuits at its 46,500mtpa facility located in Kolkata. The company is managed by Mr. Ashok Dalmia and his family. Parle Biscuits Pvt Ltd is SVBPL's key customer; the company has also started production for its own brand WERO. SERVOCONTROLS AEROSPACE: ICRA Moves B- Rating to Not Cooperating ---------------------------------------------------------------- ICRA has moved the long term ratings for the bank facilities of Servocontrols Aerospace India Private Limited (SAIPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B- (Stable)/[ICRA]A4 ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based facilities 1.40 [ICRA]B- (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Term loans 6.40 [ICRA]B- (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Interchangeable (1.40) [ICRA]B- (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund-based facilities 0.20 [ICRA]A4 ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non-fund based facilities 2.00 [ICRA]A4 ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in 2008, Servocontrols Aerospace India Private Limited is primarily engaged in machining and fabrication of precision engineering components finding applications in Aerospace and Defence sectors. The company is promoted by Mr. Deepak Dhadoti and his brother who are both qualified engineers with extensive experience in the engineering industry. The company started its operations in 2008 and has over last few years added several renowned customers including Tata Power Co. Ltd, Goodrich Aerospace Pvt Ltd, Rafael Advance Defence Systems Ltd, Nova Integrated Systems, Israel Aerospace Industries Limited-Israel, etc. SHIV GANGA: CRISIL Migrates B- Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Shiv Ganga Store (SGS) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit .55 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term .65 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) 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 Shiv Ganga Storewhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Shiv Ganga Store is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Shiv Ganga Store to CRISIL B-/Stable Issuer not cooperating'. SGS, based in Kolkata, trades in basmati rice. It is a sole proprietorship firm managed by Mr Mukesh Agarwal and his brothers Mr Alok Agarwal and Mr Bunty Agarwal. The firm commenced operations in 2009 and is one of the biggest basmati rice traders in Kolkata in terms of revenue. SHRI DAKSHINESHWARI: Ind-Ra Assigns BB Issuer Rating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Shri Dakshineshwari Maa Polyfabs Limited (SDMPL) additional bank facilities as follows: -- INR200 mil. Proposed fund-based working capital limit assigned with Provisional IND BB/Stable rating. The rating is provisional and shall be confirmed upon the sanction and execution of the loan documents for the above facilities by SDMPL to the satisfaction of Ind-Ra. RATING SENSITIVITIES Negative: Any time or cost overrun for the project will be negative for the ratings. Positive: Timely completion of the project in line with the projected cost outlay will be positive for the ratings. COMPANY PROFILE SDMPL was incorporated in November 2016 to set up a manufacturing plant for printed plastic bags, leno bags, cement bags, and AD proTex bags. SDMPL is promoted by Sajjan Bansal, Nitesh Sharma, Avishek Sharma and Shresth Bansal. Sajjan Bansal and Nitesh Sharma have also promoted Shri Maa Polyfabs Ltd. and Asansol Polyfabs (P) Ltd. STANDARD PAPER: CRISIL Moves B+ Rating to Not Cooperating --------------------------------------------------------- CRISIL Ratings has been consistently following up with Standard Paper And Board India Private Limited (SPBIPL) for obtaining information through letters and emails dated September 21, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave this rating: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) 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 Standard Paper And Board India Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Standard Paper And Board India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Standard Paper And Board India Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. SPBIPL was established in 2010 and commenced operations in 2016; it is promoted by Mr Yennarkey R Chiranjeevi Rathnam and his wife, Ms Vijayalakshmi Chiranjeevi Rathnam, who also manage operations. The company, based in Sivakasi, Tamil Nadu, is part of the Standard group and trades in printer and copier paper. STRONG BONDS: CRISIL Assigns B+ Rating to INR4MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Strong Bonds Polyseal Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B+/Stable (Assigned) Letter of Credit 1 CRISIL A4 The ratings reflect the company's modest scale of operations in a fragmented industry, below average financial risk profile, and large working capital requirement. These weaknesses are partially offset by the extensive experience of its promoters in the chemicals industry, and its comfortable debt protection metrics. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in a fragmented industry: SBPPL's modest scale, reflected in revenue of INR15.18 crore in fiscal 2017, limits bargaining power with suppliers and customers. * Below Average Financial Risk Profile: Financial Risk profile was below average marked by small networth of INR1.58 crore and moderate gearing of 1.5 times as on March 31, 2017. * Large working capital requirement: Gross current assets were 188 days as on March 31, 2017, because of receivables of 142 days. Against this, the company gets credit of 131 days from suppliers. Strengths * Extensive industry experience of the promoters: Presence of more than two decades in the chemicals business has enabled the promoters to understand market dynamics and establish strong relationships with clients and suppliers. * Comfortable debt protection metrics: Interest coverage ratio was 2.6 times and net cash accrual to total debt ratio was 0.15 time for fiscal 2017. Outlook: Stable CRISIL believes SBPPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a significant increase in revenue and operating profitability because of timely completion of capacity expansion and stabilisation of operations, leading to higher-than expected cash accrual, and improved working capital management. The outlook may be revised to 'Negative' if operating margin and topline decline, or if financial risk profile weakens, or if working capital cycle increases, leading to pressure on liquidity. SBPPL is an ISO 9001:2008-accredited company incorporated in August 1990 and promoted by Mr Sumit Datta and Mr Mainak Dutta. It began operations in May 1992, and manufactures synthetic resin which is primarily used in fibre reinforced plastic (FRP) components. SWAMI HITECH: CRISIL Migrates B Rating to Not Cooperating --------------------------------------------------------- CRISIL Ratings has been consistently following up with Swami Hitech Projects Limited (SHTPL) for obtaining information through letters and emails dated September 12, 2017 and October 25, 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 Migrated) 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 Swami Hitech Projects Limitedwhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Swami Hitech Projects Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Swami Hitech Projects Limited to CRISIL B/Stable Issuer not cooperating'. Incorporated in 1997 as Swami Infratrade Ltd, SHTPL got its present name in 2008. It is a closely held public limited company, trading in building materials such as thermo- mechanically treated (TMT) bars and other steel products, and cement. Small proportion revenue also comes from civil construction. Currently, operations are managed by Mr. Anil Mittal. The company began operations by trading in shares, which it continued till fiscal 2008. In fiscal 2011, it discontinued securities trading and commenced trading in building material. TOSHNIWAL ENTERPRISES: Ind-Ra Assigns BB+ Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Toshniwal Enterprises Controls Limited (TECL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR270 mil. Fund-based working capital limit assigned with IND BB+/Stable rating. KEY RATING DRIVERS The ratings reflect TECL's moderate credit profile and tight liquidity position. In FY17, revenue was INR1,223 million (FY16: INR1,161.1 million), operating margin was 11.7% (9.6%), gross interest coverage was 1.6x (1.8x) and net financial leverage was 4.5x (5.0x). The growth in revenue was because of the initiation of a number of projects in FY17 and the rise in the margin was due to a decline in cost of raw materials. The deterioration in gross interest coverage was due to a higher increase in finance cost than that in operating EBITDA, while the improvement in net financial leverage was due to a rise in operating EBITDA. TECL's utilisation of the fund-based working capital limits was 97.5% during the 12 months ended November 2017. Its net cash cycle was elongated at 188 days in FY17 (FY16: 171 days) due to an increase in inventory days. The ratings, however, are supported by a strong order book of INR2,435 million (1.99x of FY17 revenue) as of November 2017 and the founder's experience of over two decades in the same line of business of providing testing and measurement services to the telecom and engineering industry. RATING SENSITIVITIES Negative: Deterioration in the overall credit profile would be negative for the ratings. Positive: Substantial improvement in the scale of operations, along with an improvement in the credit metrics and liquidity, would lead to a positive rating action. COMPANY PROFILE Incorporated on October 11, 1991, TECL's promoter directors are Rajesh Toshniwal and Kamal Kishore Toshniwal. TECL generates 70% of its revenue from providing various services such as telecom test and measurement service, telecom and broadcasting and others, and the rest from various in-house network product sales. ULTRALIFT INDIA: ICRA Assigns B+ Rating to INR8cr Term Loan ----------------------------------------------------------- ICRA Ratings has assigned a long-term rating of [ICRA]B+ to the INR8.00 crore1 term loan facility of Ultralift India LLP. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Term Loan 8.00 [ICRA]B+(Stable); Assigned Rationale The assigned rating favourably factors in the extensive experience of the promoters, spanning over 45 years, in the cargo-handling industry and the committed cash flows, over the medium term, emanating from the long-term agreement with its key customer-Regen Powertech Private Limited. However, the rating is constrained by the firm's modest scale of operations along with its limited track record of operations, given the relatively recent foray into construction equipment- rental business, and its high dependence on a single customer for revenue generation. The rating is also constrained by Ultralift's leveraged capital structure and moderate debt-coverage indicators as on October 31, 2017. Other ratings concerns include the stiff competition in the industry and the dependence of the firm's prospects on investments in large-size infrastructure and industrial projects, particularly in the wind-power sector. Outlook: Stable ICRA believes Ultralift India LLP will continue to benefit from the extensive experience of its partners in the cargo-handling industry. The outlook may be revised to 'Positive' if substantial growth in revenue and profitability strengthens the financial risk profile. The outlook may be revised to 'Negative' if cash accrual is lower than expected, or if any major capital expenditure, or stretch in the working capital cycle, weakens liquidity. Key rating drivers Credit strengths * Extensive experience of the promoters in the cargo-handling business: Ultralift was established in December, 2016, by Mr. Aditya Agarwal, a second-generation entrepreneur. The Agarwal family has been in the cargo-handling business for over four decades through other Group concerns, Rashtriya Cargo Movers and Rashtriya Cargo Movers LLP. * Long-term agreement with ReGen ensures committed cash flows over FY2018-FY2023: The firm has entered into a five-year contract (renewal basis) with ReGen Powertech Pvt. Ltd. for deployment, operations and maintenance of two crawler cranes at ReGen's sites. The cranes are used for lifting and transport of wind turbines and poles at the client site. The contract started in July, 2017 and expires in July, 2022, with an option of renewal available to both parties. Under the terms of the contract, Ultralift will install, operate and maintain its crawler cranes and other related equipment by deploying requisite manpower at ReGen's sites and receive a monthly rental income of INR0.75 crore for five years for the two cranes packages. This also includes certain allied equipment which Ultralift hires from third parties. Credit challenges * Modest scale of operations in the first year; limited upside potential in the absence of capex: Ultralift's scale of operations remained modest with a revenue of INR3.10 crore in 7M FY2018 (provisional), the first year of its commercial operations. The firm has two crawler cranes, both deployed at ReGen's sites and earns a fixed rental income from these, thus limiting the upside sales potential. The revenue growth will primarily be driven by the addition of new cranes/other construction equipment and successful deployment of the same going forward. * Leveraged capital structure and moderate debt-coverage indicators: The capital structure of the firm is leveraged with a gearing of 2.41 times as on October 31, 2017. The total debt of INR10.44 crore as on October 31, 2017 comprises INR7.95 crore term loans and INR2.49 crore interest-free unsecured loans from the partners and family. The interest cover is moderate at 1.43 times in 7M FY2018. * High working-capital intensity owing to high debtors as on October 31, 2017: The working-capital intensity of the firm is high with a NWC/OI of 52% as on October 31, 2017 mainly due to high receivables of INR3.1 crore outstanding from ReGen towards the billing for July, 2017. The firm receives payment from ReGen in 90 days post-raising the invoice. The first bill was raised by Ultralift in July, 2017, while the payment for the same was received in November, 2017. * High dependence on single customer; operations remain susceptible to wind-power sector: The firm, at present, has only one customer, Regen Powertech, to which it has provided both its cranes on a rental basis. It is thus solely dependent on ReGen for generating bulk of its revenues. Further, with ReGen's presence only in the wind-power sector, the operations of Ultralift remain susceptible to the performance of the wind-power industry in the long-term. * Intense competition; susceptibility to investments in large- size infrastructure and industrial investments: The crane-rental industry, in the past, had witnessed an increase in competition with existing players such as ABG Logistics and All Cargo Logistics expanding their crane fleet in anticipation of huge investments in domestic infrastructure. The firm's performance also remains susceptible to investments in the wind-power sector, which contributes a sizeable share of its revenue, at present. A slowdown in order execution in the wind-power sector might impact the utilisation levels and the rental yields of Ultralift. Incorporated in December 2016, Ultralift India LLP is a limited liability partnership firm promoted by Mr. Aditya Agarwal and Mrs. Pratima Agarwal. It is involved in the business of providing medium to heavy-duty cranes on rental basis to private and public-sector undertakings. It commenced operations in April, 2017, and at present has a fleet size of two crawler cranes having a lifting capacity of 450 MT each. Ultralift has a long- term agreement with ReGen Powertech Pvt. Ltd. for deployment, operations and maintenance of these two cranes at two of its sites. During 7M FY2018, on a provisional basis, the firm reported a profit before tax and depreciation (PBDT) of INR0.32 crore on an operating income of INR3.10 crore. UNISUN POWER: CRISIL Assigns B+ Rating to INR1.66MM LT Loan ----------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4 ' ratings to the bank facilities of Unisun Power (UP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 1.66 CRISIL B+/Stable Bank Guarantee 3.80 CRISIL A4 Cash Credit .35 CRISIL B+/Stable The ratings reflect stabilisation risk associated with operations of solar plant and dependence on favourable climatic conditions for power generation. These weaknesses are partially offset by the firm's 25-year power purchase agreement (PPA) with Tamil Nadu Electricity Board (TNEB) and low technological risk. Key Rating Drivers & Detailed Description Weakness * Stabilization Risk associated with operations of solar plant: The firm's solar power plant has been in operations since April,2016 and is susceptible to stabilization risk associated with operations of the solar plant. Further track record of steady payments from TNEB is to be seen. * Company's dependence on favorable climatic conditions for power generation: Solar power generation requires favorable climatic conditions such as absence of clouds and access to sunlight. Strengths * Stable business risk profile supported by 25- year PPA with TNEB: The firm has entered into a 25- year PPA with TNEB. This should continue to benefit the firm's business risk profile. * Low technology risk: The firm's solar panels operate on poly- crystalline technology, which has a long operational track record. CRISIL believes that the firm's exposure to low technology risk will continue to benefit it over the medium term. Outlook: Stable CRISIL believes UP will benefit over the medium term from its 25- year PPA with TNEB. The outlook may be revised to 'Positive' in case of sizeable cash accrual and improvements in liquidity. The outlook may be revised to 'Negative' if TNEB delays payment or significant debt-funded capital expenditure weakens financial risk profile, particularly liquidity. Set up as a partnership firm in Sathyamanagalam, Tamil Nadu, UP has set up a 1 megawatt solar power plant in Kavilipalayam village. It has entered into a 25-year PPA with TNEB from 2016 at a price of INR7.01 per unit. USHDEV INTERNATIONAL: SBI Initiates Insolvency Process v. Firm -------------------------------------------------------------- The Economic Times reports that government-owned State Bank of India has initiated insolvency resolution proceeding against Ushdev International, the company which was part of the second list released by the Reserve Bank of India. In August, the RBI has directed banks to find resolution for 28 loan accounts by December 13. If banks are unable to put in place a resolution plan before December 13, the RBI said that lead bank should refer these cases to National Company Law Tribunal (NCLT) by December 31, ET relates. Ushdev International, was founded by late Vijay Gupta, who started operation as commission agent and later diversified to become a power generating and steel trading company, ET discloses. According to ET, the promoters have 54% stake in the company and the balance stake is held by the public. The shares of the company reported a loss of INR229 crore in fiscal year 2016-17 while it reported a profit of INR52 crore a year ago. The shares closed 4% lower than Thursday close at INR2.11. Under the Insolvency and Bankruptcy Code, a resolution plan has to be in place within 270 days, failing which the court will rule in favor of liquidation of assets, the report notes. Founded in 1994, Ushdev International is a metal trading company, which mainly trades nickel, ferrous flat products and long products. V.M. BAKERY: ICRA Revises Rating on INR5.40cr Term Loan to B- ------------------------------------------------------------- ICRA Ratings has revised the long-term rating outstanding on the INR5.40-crore term-loan facilities and INR2.80-crore (enhanced from INR1.80 crore) fund-based facilities and INR2.00-crore unallocated facilities of V.M. Bakery Products Private Limited (VMBPPL) to [ICRA]B- from [ICRA]B. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 5.40 [ICRA]B- (Stable); Revised Loan from [ICRA]B Fund based- 2.80 [ICRA]B- (Stable); Revised Working Capital from [ICRA]B Facilities Rationale The rating downgrade takes into account cash losses in FY2017 and 6MFY2018 owing to slow ramp-up of operations and adverse cost structure and insufficiency of cash accruals to make term-loan repayments although the shortfall is being met by timely infusion from the promoter. The rating is also constrained by the company's small scale of operations in the bakery industry and presence in limited geographies, exposing its revenues to concentration risks in the intensely competitive bakery business. Further, the ratings are constrained by tight liquidity position as reflected by its debt metrics with gearing of 12.2 times as on March 31, 2017 and negative coverage indicators for FY2017. Also, the small scale of operations has limited VMBPPL to benefit from economies of scale. The ratings, however, favourably consider the long experience of the promoters in the field of bakery business, intense scope of expansion in the bakery industry and favourable revenue growth prospects in the medium term for VMBPPL. The company's ability to improve its cost structure, cash accruals position and thereby debt indicators will be critical to improve its credit profile in the short term. Outlook: Stable ICRA believes V. M. Bakery Products Private Limited will continue to benefit from the extensive experience of the promoters. The outlook may be revised to 'Positive' if substantial growth in revenue and profitability strengthen the financial risk profile. The outlook may be revised to 'Negative' if cash accruals remain insufficient to honour its debt obligations or stretch in the working-capital cycle weaken the liquidity. Key rating drivers Credit strengths * Decade-long experience of the promoter in the bakery business: Having a Master degree in wheat-based processing, the promoter has been in the bakery business for over a decade, enabling in superior client relationship. * Favourable demand prospects for bakery products: Although characterised by availability of multiple organised and unorganised players, demand for bakery products is favourable in the near term. Credit weaknesses * Negative cash accruals impact debt-servicing ability: Low revenues and high operating costs have restricted the net profitability of VMBPPL and thereby the cash-accruals position. * Slow ramp-up of operations and aggressive cost structure: The plant was operational from March, 2015 and stabilisation of machinery had impacted its capacity utilisation levels which improved to about 45% (in 6M FY2018). Raw materials constitute over approx. 70% of the revenues, followed by employee cost which constitute over approx. 35%, resulting in adverse cost structure. * Intense competition from other players: Presence of a large number of branded and unorganised players led to an intense competition in the industry, limiting its pricing ability. * Stretched liquidity position and financial profile: The financial risk profile is characterised by high gearing of 12.2 times as on March 31, 2017 and coverage indicators with TD/ OPBITDA at -6.7 times and interest cover at -1.3 times for FY2017. Incorporated in 2012, VM Bakery Products Private Limited (VMBPPL) manufactures bakery products such as biscuits (~60% of top line in FY2017), cookies (~30% of top line in FY2017) and other bakery products like rusks and cakes. The company has its manufacturing facility at Vijayawada, Andhra Pradesh and has ~45% capacity utilisation in single shifts. VMBPPL commenced commercial operation in March, 2015 and is selling its product under the brand name "Just Breads". In FY2017, the firm reported a net loss of INR4.6 crore on an operating income of INR3.5 crore compared to a net loss of INR1.5 crore on an operating income of INR1.1 crore in FY2016. VIKRAM HOSPITAL: ICRA Hikes Rating on INR30cr Loan to B ------------------------------------------------------- ICRA Ratings has upgraded the long-term rating assigned to the INR30.0-crore non convertible debenture (NCD) programme of Vikram Hospital (Bengaluru) Private Limited (VHBPL) from [ICRA]B-to [ICRA]B. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible 30.0 [ICRA]B (Stable); Upgraded Debenture Programme from [ICRA]B- Rationale The rating upgrade takes into account the improvement in VHBPL's operational profile marked by better occupancy on account of higher in-patient admission, increase in the number of procedures/surgeries performed and increase in the number of out- patient registrations during H1FY2018. The rating also factors in the reduction in coupon rate of the rated NCDs from 12% to 6% with effect from April, 2017, resulting in improvement in interest coverage. The rating is also supported by the reputation of VHBPL in the market, its strong parentage for being entirely held by private equity investor, Multiples Alternate Asset Management Private Limited, the presence of experienced consultants among the panel of doctors and its favourable location, which provides easy accessibility from the remaining part of the city. The rating, however, continues to remain constrained by the company's stretched financial profile characterised by net losses which has eroded the net worth and inadequate coverage metrics coupled with the bullet NCD repayment burden in December, 2018. Timely funding support from the promoter remains critical in the absence of inadequate cash accruals to meet the repayment obligations. The rating also remains constrained by the exposure to concentration risks inherent in single-asset companies. Further, the rating also takes into account the high competitive intensity with the presence of other well established tertiary- care specialty hospitals in Bengaluru. Going forward, VHBPL's ability to scale up its operations and increase the occupancy levels of the hospital through better utilisation of its existing facilities and achieve healthy profitability levels would be key rating factors. VHBPL's ability to attract and retain reputed doctors also remains critical. Outlook: Stable ICRA believes VHBPL will continue to benefit over the medium term with the presence of experienced management and consultants and the brand strength of the hospital in the market. The outlook may be revised to 'Positive' in case of sustained increase in revenues and profitability, resulting in improvement in business and financial risk profile. Conversely, the outlook may be revised to 'Negative' if VHBPL's financial risk profile weakens further because of inadequate cash accruals or in case of delays in timely support from the promoters. Key rating drivers Credit strengths * Strong parentage of Multiples, private equity (PE) fund partners: VHBPL's promoter, Multiples Alternate Asset Management Private Limited (Multiples) is a reputed PE fund with over $1.0 billion under management. The promoters during FY2016 had infused additional equity and subscribed NCDs to retire VHBPL's old debt. * Improvement in interest cover with reduction in interest expense: The financial profile of the company has witnessed improvement due to decrease in quarterly debt-service obligation on account of reduction in coupon rates of the rated NCDs which led to an increase in interest cover to 2.5 times during H1FY2018 from 0.2 times in FY2017. * Strong medical infrastructure and backing of prominent doctors: The hospital offers medical services across 38 specialties which includes cardiology, neurology, orthopaedic, gastroenterology, oncology, ENT, cosmetology, dermatology, spine surgery, pediatrics etc. The company has ~70 doctors on roll, allied medical staff of 700 people and ~20-25 visiting doctors. Being in operation for almost six years now, it has established reputation as a multi-specialty hospital in Bengaluru with experienced consultants and latest technology equipment. Credit challenges * Modest scale of operations: The company has a moderate scale of operations and the operating income stood at INR110.1 crore in FY2017 against INR107.9 crore in FY2016, translating into a modest YoY growth of 2.1%. * Financial profile characterised by net losses and weak debt- coverage indicators: The financial profile of the company continues to remain stretched, characterised by losses at the net level since the commencement of operations in 2011, which has significantly eroded the company's net worth, leading to deterioration of the debt coverage indicators. Improvement in profit margins has led to marginal improvements in coverage indicators in H1FY2018 but they still remain weak as evidenced by Total Debt/OPITDA of 6.4 times and NCA/TD of 8.6% during the period. * Exposure to refinancing risk exists due to weak accruals: The company has a bullet repayment of the rated NCDs falling due in December 2018. However, exposure to refinancing risk remains if the company is not able to generate adequate cash flow to meet the repayment and may necessitate fund support from promoters. * Improved occupancy in the current year but it still remains below optimum levels: The occupancy at the hospital has improved from 40% in FY2017 to around 54% in H1FY2018, however, it still remains at sub-par level. The increase in occupancy levels can be attributed to improved brand image, aided by the profile of the consultants, and increase in number of procedures compared to previous years. * Ability to attract and retain high-quality consultants: Improvement of the occupancy levels is highly dependent on the hospital's ability to retain and add reputed consultants which will be a challenge in the light of heightened competition in the healthcare sector. * Highly competitive scenario with presence of other established tertiary-care and multi-specialty hospitals in Bangalore: VHPL continues to face high competitive intensity from other hospitals in Bangalore. Over the years, the healthcare services industry has grown highly competitive with the increasing footprint of large corporate hospital chains and other reputed standalone hospitals. Consequently, the competitive intensity in Bangalore has affected the pricing flexibility of the company, in addition to restricting occupancies to a certain extent. Vikram Hospital (Bengaluru) Private Limited (VHBPL) was incorporated on February 27, 2009. In 2013, Multiples Alternate Asset Management Private Limited (Multiples) acquired a 95.56% stake in VHBPL along with fresh equity infusion of INR75.41 crore in FY2014. VHBPL has as a 225-bedded multispecialty hospital with 24-hour human, medical and infrastructural facility to render specialised service. The hospital has nine Medical Intensive Care Units (MICU), nine Surgical Intense Care Units (SICU), nine Intensive Cardiac Care Units, 12 Dialysis beds, 10 operation theatres, two cathlabs and a pharmacy. In FY2017, the company reported a net loss of INR11.0 crore on an operating income of INR110.1 crore compared to a net loss of INR10.8 crore on an operating income of INR107.9 crore in the previous year. YAMUNA BIO: CRISIL Moves B+ Rating to Not Cooperating Category -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Yamuna Bio Energy Private Limited (YBEPL) for obtaining information through letters and emails dated September 12, 2017 and October 25, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 3.25 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 2.50 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) 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 Yamuna Bio Energy Private Limitedwhich restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Yamuna Bio Energy Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Yamuna Bio Energy Private Limited to CRISIL B+/Stable Issuer not cooperating'. Set up initially as a proprietorship, Yamuna Industries was reconstituted as a private limited company with the current name in 2014. It is promoted by the Vadodara (Gujarat)-based Mr. Gaurang Shah and others. The company manufactures bio-diesel. ========= J A P A N ========= DTC ONE: S&P Affirms BB(sf) Issuer Rating on Class E Notes ---------------------------------------------------------- S&P Global Ratings said it has affirmed its ratings on classes B to E issued by DTC One SPC. Classes A-1, A-2, and A-3 have already been fully redeemed. The rating affirmation reflects the following: -- The construction company Daito Trust Construction Co. Ltd. entered into a master lease agreement with each obligor of the apartment loans underlying the transaction. The obligors continue to repay principal and pay interest on the loans using the stable income from the master leases. As a result, the delinquency and default rates of the pool of loans underlying these transactions have been extremely low since closing. -- The vacancy rates of the collateral properties have remained stable, even though the age of each property exceeds 10 years. -- S&P said, "For the loans currently outstanding, we assume a foreclosure frequency of about 5% and projected losses (net loss rate after accounting for recoveries from defaulted loans) of about 1% under our base-case scenario, and we assume a foreclosure frequency of about 39% and projected losses of about 14% under our 'AAA' stress scenario. In calculating the foreclosure frequency, we did not take into account the stabilizing effect on income of the master lease contracts." -- In determining the ratings on classes D and E, we take into account the possibility of high volatility in transaction performance following a further future reduction in the size of the collateral pool, which is now about JPY1 billion. -- Scheduled repayments and prepayments of the principal on the underlying loans have advanced redemption of the principal on the rated notes, which has led to increased credit enhancement. Credit support for classes B to E is sufficient to cover various risks, such as credit risk, under stress scenarios consistent with the respective current ratings. The DTC1 transaction is backed by a pool of apartment construction loans that Lehman Brothers Commercial Mortgage K.K. (formerly New Century Finance Co. Ltd.) originated. The loans were extended to finance the construction costs and miscellaneous expenses of rental apartment buildings that Daito Trust Construction newly built. Updated loan-by-loan data for the transaction are provided. RATINGS AFFIRMED DTC One SPC JPY6.09 billion pass-through notes due November 2034 Class Rating Initial issue amount B AAA (sf) JPY0.32 bil. C AAA (sf) JPY0.18 bil. D AA+ (sf) JPY0.32 bil. E BB (sf) JPY0.35 bil. Non-rated class F notes (initial issue amount: about JPY0.22 bil.) were also issued under this transaction. The transaction closed on Nov. 28, 2002. KOBE STEEL: Egan-Jones Hikes Sr. Unsecured Ratings to BB+ --------------------------------------------------------- Egan-Jones Ratings Company, on Oct. 10, 2017, raised the foreign currency and local currency senior unsecured ratings on debt issued by Kobe Steel Ltd to BB+ from BB. Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel Limited -- http://www.kobelco.co.jp/english/corp/index.html-- is one of Japan's leading steel makers, as well as the top supplier of aluminum and copper products. Other businesses include welding consumables, urban infrastructure and plant engineering services, and industrial machinery. Kobe Steel has offices in New York, Singapore, Bangkok and Beijing. SHARP CORP: Egan-Jones Hikes LC Sr. Unsecured Debt Rating to B- --------------------------------------------------------------- Egan-Jones Ratings Company, on Oct. 20, 2017, raised the local currency senior unsecured rating on debt issued by Sharp Corp. to B- from CCC+, and the local currency commercial paper rating of the Company to B from C. Sharp Corporation is a Japanese multinational corporation that designs and manufactures electronic products. SHOWA SHELL: Egan-Jones Hikes LC Sr. Unsecured Rating to BB+ ------------------------------------------------------------ Egan-Jones Ratings Company, on Sept. 21, 2017, upgraded the local currency senior unsecured rating on debt issued by Showa Shell Sekiyu KK to BB+ from BB. Showa Shell Sekiyu Kabushiki Kaisha is the base of Royal Dutch Shell group in Japan. It is an energy company that refines and sells oil products worldwide. TOSHIBA CORP: Faces Class Action Over Scrapped US Nuclear Project ----------------------------------------------------------------- Nikkei Asian Review reports that a group of U.S. residents has launched a class-action lawsuit against Toshiba Corp. over the decision to halt work on a pair of reactors being built by its bankrupt American nuclear unit, seeking unspecified damages. Two residents of South Carolina, home to the V.C. Summer nuclear plant, have taken the Japanese electronics conglomerate to court on behalf of customers purchasing power from South Carolina Electric & Gas, whose parent Scana manages the plant. Toshiba was served with the complaint on Dec. 26, the Nikkei says. According to the Nikkei, Toshiba nuclear unit Westinghouse Electric of the U.S. was contracted to build two new reactors at the plant, with a portion paid for via premiums SCE&G charged customers on their electric bills. After Westinghouse filed for bankruptcy, Toshiba reached a deal to abandon the expansion, the report says. The plaintiffs now demand that Toshiba pay the customers who helped foot the bill for the canceled project, relates the Nikkei. This marks the first damages claim Toshiba has faced over its U.S. nuclear operations, the report states. The total amount sought was not given in the documents received by the company. Toshiba has said it does not anticipate a major impact on earnings at this time, the Nikkei adds. About Toshiba Corp Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 15, 2017, Moody's Japan K.K. affirmed Toshiba Corporation's Caa1 corporate family rating and senior unsecured debt ratings, and its Ca subordinated debt rating. Moody's has also changed the ratings outlook to stable from negative. At the same time, Moody's has affirmed Toshiba's commercial paper rating of Not Prime. On Oct. 6, 2017, S&P Global Ratings affirmed its 'CCC-' long-term corporate credit and 'C' short-term corporate credit and commercial paper program ratings on Japan-based capital goods and diversified electronics company Toshiba Corp. S&P also removed the ratings from CreditWatch. The outlook is negative. At the same time, S&P raised the senior unsecured rating one notch to 'CCC-' from 'CC' following completion of its review of the rating. S&P also removed the senior unsecured rating from CreditWatch with negative implications following its affirmation of the long-term corporate credit rating and resolution of the CreditWatch. =============== M A L A Y S I A =============== SABAH ELECTRICITY: Talks Continue as Firm Nears Insolvency ---------------------------------------------------------- Borneo Post Online reports that the future of Sabah Electricity Sdn Bhd (SESB) will be determined following an ongoing discussion between the Energy, Green Technology and Water Ministry (KeTTHA), Ministry of Finance (MoF) and Tenaga Nasional Berhad (TNB). "The discussion is crucial, especially since SESB continues to make losses and on the verge of insolvency," the report quotes KeTTHA Minister Datuk Seri Dr Maximus Ongkili as saying. TNB owns 82.75% of SESB, while the rest of the stake is held by the Sabah State Government, the report discloses. "SESB's current average tariff is 34.52 cents/kwh while cost of energy generation is 56.50 cents/kwh. Hence, the Federal Government has been subsidising SESB's fuel costs, ie primarily diesel, medium fuel oil (MFO) and gas," Maximus said, adding the Federal Government has also been providing the bulk of SESB's capital expenditure, Borneo Post relays. Since 2012, MYR4.2 billion has been spent by the Federal Government to boost SESB's operation, and that both TNB and SESB have also spent their portion on capex expenditure, the report relates. For the period between 2016 and 2019, the Federal Government has also allocated MYR2.3 billion for capex and reducing System Average Interruption Duration Index (SAIDI), Borneo Post discloses. Maximus added that through these efforts, the SAIDI in Sabah had been reduced from 777 minutes/customer/year in 2014 to 311 last year, and expected to be further reduced to 280 by year end, the report adds. According to the report, SESB also has been asking for tariff revision since its last review in 2014, but it is also the Federal Government's duty to ensure tariff is fair and affordable to consumers. "We also want to ensure that the tariff revision is reflective of the quality of power delivered," he said in responding to the comments by TNB chief executive officer Datuk Seri Azman Mohd. Azman disclosed that they are discussing on the future of SESB and an agreement is expected by the new year to determine the best option, the report says. ==================== N E W Z E A L A N D ==================== MOSSGREEN PTY: Administration No Effect on Auckland Auction House ----------------------------------------------------------------- Hamish Fletcher at NZ Herald reports that the Auckland auction house Mossgreen-Webb's isn't affected by its Australian arm going into voluntary administration, says its chief executive. Mossgreen, which has branches in Melbourne and Sydney, bought Webb's auction house in Parnell in 2015, the report discloses. At the time, chief executive Paul Sumner described Mossgreen as "Australia's largest and highest-grossing auction house and the most favored avenue for collectors when they are selling complete collections". "Since acquiring the former Webb's auction house in New Zealand, the company is now run as a transtasman regional business," Mossgreen-Webb's said on its website, the Herald relates. According to the Herald, Mr. Sumner said in a statement to clients and other stakeholders that "Mossgreen has chosen to take a path of voluntary administration during the month of January at a time that will least impact our clients and which will allow the company to restructure its business". "The company is looking forward to a very strong calendar of auction-sales that are contracted and already catalogued for the first half of 2018, starting in February," he said in the statement. "No vendors will lose any money in this process and neither will any of our staff, who will also be fully supported through this process." Mr. Sumner said the administration wouldn't impact the New Zealand business, the Herald adds. Mossgreen specializes in Single Owner Auctions for collections covering fine art and antiques. James Michael White, Nicholas Martin and Andrew Sallway of BDO were appointed as administrators of Mossgreen Pty on Dec. 21, 2017. ********* 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 ***