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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
Thursday, April 26, 2018, Vol. 21, No. 082
Headlines
A U S T R A L I A
COMBUILT PTY: Second Creditors' Meeting Set for May 3
HOFBRAEUHAUS PTY: Second Creditors' Meeting Set for May 3
RENEWABLE ENERGY: Second Creditors' Meeting Set for May 2
SHOES IN THE ATTIC: Second Creditors' Meeting Set for May 4
STORAGE & MATERIAL: Second Creditors' Meeting Set for May 3
I N D I A
4 GENIUS MINDS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
ADROIT INFRATECH: CRISIL Reaffirms B+ Rating on INR5.66MM Loan
AIR INDIA: Any Entity with Adequate Finances Can Bid for Stake
BALLIA NAGAR: Ind-Ra Withdraws 'BB-' Long Term Issuer Rating
BETHEL CASHEW: CRISIL Withdraws D Rating on INR7MM Cash Loan
BINANI CEMENT: NCLT Kolkata Reserves Order in Insolvency Process
BLA PROJECTS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
CHHATTISGARH FERRO: CRISIL Moves B+ Rating to Not Cooperating
CREATIVE CLOTHEX: Ind-Ra Moves 'D' LT Rating to Non-Cooperating
DHRUVTARA AGRO: CRISIL Raises Rating on INR5MM Cash Loan to B-
ERODE CRITICAL: CRISIL Migrates D Rating to Not Cooperating
ESSAR STEEL: CoC Leaning Towards Inviting Fresh Bids for Business
ETA POWERGEN: CRISIL Moves D Rating to Not Cooperating Category
GEETHA KRISHNA: Ind-Ra Migrates B+ LT Rating to Non-Cooperating
INDRANI AUTOMOTIVE: Ind-Ra Moves 'BB' Rating to Non-Cooperating
JM INTERNATIONAL: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
KUTTANAD RUBBER: CRISIL Lowers Rating on INR5.4MM Loan to D
LOTUS PROJECTS: CRISIL Lowers Rating on INR7.5MM Cash Loan to D
NIRMANGHAR TRADERS: CRISIL Reaffirms B Rating on INR7MM Loan
ORBIT ELECTRO: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
ORIENTAL TEXTILES: CRISIL Lowers Rating on INR8MM Loan to D
PAWAR PATKAR: CRISIL Migrates D Rating to Not Cooperating
RAIHAN HEALTHCARE: CRISIL Lowers Rating on INR32MM LT Loan to D
RAVINA HEALTH: CRISIL Lowers Rating on INR16MM Term Loan to D
RUDRA AGRO: CRISIL Moves B Rating to Not Cooperating Category
SHAKTI COT: CRISIL Moves B+ Rating to Not Cooperating Category
SHINING STAR: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating
SHIW PRASAD: Ind-Ra Maintains BB Issuer Rating to Non-Cooperating
SRI SITARAMANJANEYA: CRISIL Moves B+ Rating to Not Cooperating
SUPREME HOUSING: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating
SUSHILA INTERNATIONAL: CRISIL Withdraws D Rating INR3.5MM Loan
TARA SYNTEX: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating
TRIMURTI FLOUR: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
VIDEOCON GROUP: Wants NCLT to Consolidate All Insolvency Cases
J A P A N
KOBE STEEL: Egan-Jones Lowers FC Senior Unsecured Ratings to BB
N E W Z E A L A N D
FORESTLANDS: FMA Seeks Liquidation for 18 Companies
S I N G A P O R E
AVATION PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB
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A U S T R A L I A
=================
COMBUILT PTY: Second Creditors' Meeting Set for May 3
-----------------------------------------------------
A second meeting of creditors in the proceedings of Combuilt Pty
Ltd has been set for May 3, 2018, at 11:00 a.m. at the offices of
Vincents, Level 34, 32 Turbot Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 2, 2018, at 5:00 p.m.
Nick Combis of Vincents was appointed as administrator of
Combuilt Pty on March 20, 2018.
HOFBRAEUHAUS PTY: Second Creditors' Meeting Set for May 3
---------------------------------------------------------
A second meeting of creditors in the proceedings of Hofbraeuhaus
Pty Ltd has been set for May 3, 2018 at 3:30 p.m. at the offices
of Governance Institute of Australia, Level 7, 500 Collins
Street, in Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 2, 2018, at 5:00 p.m.
Michael Gregory Jones of Jones Partners was appointed as
administrator of Hofbraeuhaus Pty on March 19, 2018.
RENEWABLE ENERGY: Second Creditors' Meeting Set for May 2
---------------------------------------------------------
A second meeting of creditors in the proceedings of Renewable
Energy Traders Pty Ltd has been set for May 2, 2018, at 1:00
p.m. at the offices of Worrells Solvency & Forensic Accountants
Level 8, 108 Adelaide Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2018, at 5:00 p.m.
Stephen John Hundy and Jason Bettles of Worrells Solvency were
appointed as administrators of Renewable Energy on March 19,
2018.
SHOES IN THE ATTIC: Second Creditors' Meeting Set for May 4
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Shoes In the
Attic Pty Limited has been set for May 4, 2018, at 11:00 a.m. at
the offices of Young Business RIT, Level 9, 66 Clarence Street,
in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 2, 2018, at 5:00 p.m.
David Gregory Young of Young Business RIT was appointed as
administrators of Shoes In the Attic on March 22, 2018.
STORAGE & MATERIAL: Second Creditors' Meeting Set for May 3
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Storage &
Material Handling Group Pty Ltd has been set for May 3, 2018 at
10:30 a.m. at Level 12, 460 Lonsdale Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 2, 2018, at 4:00 p.m.
Malcolm Kimbal Howell and Liam William Paul Bellamy of Jirsch
Sutherland were appointed as administrators of Storage & Material
on March 19, 2018.
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I N D I A
=========
4 GENIUS MINDS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded 4 Genius Minds
Private Limited's Long-Term Issuer Rating to 'IND D' from IND
BBB- and simultaneously migrated the rating to the non-
cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Thus, the rating is based on the best available
information. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR450 mil. Fund-based working capital facilities (long-term
and short-term) Downgraded and migrated to non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Proposed fund-based working capital facilities
(long-term and short-term) downgraded and migrated to non-
cooperating category with Provisional IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The ratings have been downgraded following a confirmation from
the company's lenders that there has been continuous
overutilization of the cash credit facility and over dues in bill
discounting facility for over 30 days as on date.
The agency has been seeking monthly no default statements from
the company; however, it has not received the same since October
2017.
RATING SENSITIVITIES
Positive: Timely Servicing of debt for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
4 Genius Minds is a leading authorized reseller of all Apple
products in India and is authorized to provide both system
integration and after-sales services such as repair and
maintenance in the B2B segment.
ADROIT INFRATECH: CRISIL Reaffirms B+ Rating on INR5.66MM Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facility of Adroit Infratech Private Limited (AIPL) at 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 5.66 CRISIL B+/Stable (Reaffirmed)
The rating reflects AIPL's modest scale of operations in the
intensely competitive hospitality industry, and a modest
financial risk profile due to high leverage and modest networth.
These weaknesses are partially offset by the extensive experience
of promoters and their funding support.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive
hospitality industry: Because of exposure to high competition,
scale is expected to continue to remain modest over the medium
term. In fiscal 2017, operating income was INR2.2 crores in
fiscal 2017.
* Modest financial risk profile: Financial risk profile is modest
as reflected from modest networth (INR0.17 crores as on March 31,
2017), high leverage (total outside liabilities to adjusted
networth ratio was 58.8 times as on March 31, 2017) and modest
interest coverage ratio (2.1 times in fiscal 2017). Financial
risk profile is expected to remain modest over the medium term
Strengths
* Extensive experience of promoters: The promoters have been in
this hospitality business for over 5 years and have gained
understanding of the market dynamics. Supported by which, they
have been able to set up hotel at prime locations, with
advantages in terms of proximity to complex mall. Benefits from
the promoter's extensive experience is expected to continue over
the medium term.
* Funding support from promoters: In order to support the
business, promoters have extended unsecured loan and has also
infused equity in the past.
Outlook: Stable
CRISIL believes AIPL will benefit from its established market
position due to the location advantage of its mall-cum-hotel. The
outlook may be revised to 'Positive' if sustenance of occupancy
level both in the mall and the hotel results in better cash
accrual, along with improvement in the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if further
debt-funded capital expenditure or low occupancy levels leads to
deterioration in the financial risk profile.
Established in 2011 by Mr Harish Sachdeva, a non-resident Indian
based in Japan, AIPL runs a commercial mall-cum-hotel measuring
1296 square metres at Dharamshala in Kangra (Himachal Pradesh).
AIR INDIA: Any Entity with Adequate Finances Can Bid for Stake
--------------------------------------------------------------
PTI reports that Department of Investment and Public Asset
Management Secretary Neeraj Gupta on April 19 said any entity
having adequate finances and ability to run Air India can bid for
a 76% stake in the national carrier.
The government had last month floated a preliminary information
memorandum inviting bidders to buy a 76% stake in loss-making
Air India along with transfer of management control, PTI
recounts.
According to PTI, an official in the finance ministry said there
has been good response from entities in airline industry as well
as corporates for buying stake in the debt-ridden national
carrier.
The secretary said the government has kept financial capacity of
the bidder as the main criteria for disinvestment of Air India.
The bidder should also have the ability to run the national
carrier, PTI relates.
The last date for submission of the bids is May 14, PTI
discloses.
About Air India
Air India Ltd -- http://www.airindia.com/-- is the flag carrier
airline of India owned by Air India Limited (AIL), a Government
of India enterprise. The airline operates a fleet of Airbus and
Boeing aircraft serving various domestic and international
airports. It is headquartered at the Indian Airlines House in
New Delhi.
As reported in the Troubled Company Reporter-Asia Pacific on
March 28, 2014, The Times of India said Air India got a breather
in the form of INR1,000-crore equity infusion from the government
on March 26, 2014. According to the report, the airline's
unending financial stress had got worse as the Centre had so far
given INR6,000 crore instead of the promised INR8,500 crore for
the fiscal. As a result, AI had to bridge this gap by borrowing
money from banks at 11%-12%, which increased its debt servicing
burden, the report said. Before the infusion, the government had
injected INR12,200 crore into AI and there was a shortfall in
equity to the tune of INR3,574 crore -- despite the airline
meeting most of the milestone-linked equity targets -- leading to
a liquidity crunch, the report related.
Air India has posted continuous losses since 2007, according to
The Economic Times.
BALLIA NAGAR: Ind-Ra Withdraws 'BB-' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Ballia Nagar
Palika Parishad's (BNPP) Long-Term Issuer Rating of 'IND BB-'.
The Outlook was Stable.
PROFILE
Ballia is located in the eastern part of Uttar Pradesh bordering
Bihar. Bhojpuri is the primary language. The city is well
connected to Varanasi and Gorakhpur by both road and railway and
to Patna by road. Ballia has a major railway station by the same
name that handles about 35 trains daily. Dadri Mela, a prominent
cattle fair of Uttar Pradesh, is organized every year in October
or November on Kartik Purnima at Dadri, Ballia.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the rating, as the
issuer rating was assigned under the Atal Mission for
Rejuvenation and Urban Transformation (AMRUT) programme and no
specific debt was issued against the rating.
BETHEL CASHEW: CRISIL Withdraws D Rating on INR7MM Cash Loan
------------------------------------------------------------
CRISIL Ratings has been consistently following up with Bethel
Cashew Company (BCC) 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 7 CRISIL D (Issuer Not
Cooperating; Migrated
from 'CRISIL D'; Rating
Withdrawal)
Standby Line of Credit 0.6 CRISIL D (Issuer Not
Cooperating; Migrated
from 'CRISIL D'; Rating
Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of BCC. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
BCC is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BB' rating
category or lower'. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of BCC to
'CRISIL D' Issuer not cooperating' from 'CRISIL D'.
CRISIL has withdrawn its rating on the bank facilities of BCC on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
Set up in 1995, BCC is a partnership firm that processes raw
cashew nuts and sells cashew kernels. BCC currently operates a
facility in Kollam (Kerala). The operations are managed by Mr.
Geevarghese D, one of the partners.
BINANI CEMENT: NCLT Kolkata Reserves Order in Insolvency Process
----------------------------------------------------------------
The Hindu Business Line reports that the Kolkata bench of
National Company Law Tribunal on April 24 reserved its order in
the ongoing corporate insolvency resolution process of Binani
Cement.
The Division Bench completed hearing all petitions excepting the
one filed by the Resolution Professional alleging fraudulent
transactions involving the promoters of Binani Cement, The Hindu
Business Line relates.
According to The Hindu Business Line, the 270-days moratorium
period for Binani Cement ended on April 21 and the Division Bench
had on April 20, passed an interim order asking the Resolution
Professional of Binani Cement to continue taking care of the
management of the company "until further order".
About Binani Cement
Binani Cement is a subsidiary of Binani Industries, a
conglomerate with manufacturing and R&D operations. It has a
manufacturing capacity of 11.25 million tonnes (mt) per annum
with integrated plants in India and China, and grinding units in
Dubai.
On July 25, 207, the Kolkota bench of the National Company Law
Tribunal (NCLT) admitted an insolvency petition against Binani
Cement.
Bank of Baroda (BoB) had referred Binani to the bankruptcy court
after it failed to repay a sum of INR97 crore. BoB has appointed
Vijaykumar V Iyer of Deloitte India as the interim resolution
professional (IRP) to oversee the insolvency process.
The company owes a consortium of lenders close to INR3,042.93
crore. Edelweiss ARC, which has bought over a chunk of the debt
from bankers, is now the leader of the consortium.
BLA PROJECTS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn BLA Projects
Pvt. Ltd.'s (BPPL) Long-Term Issuer Rating of 'IND BB'. The
Outlook was Stable.
The instrument- wise rating actions are:
-- INR226 mil. Fund-based working capital limits withdrawn and
the rating is withdrawn; and
-- INR890 mil. Non-fund-based working capital limits withdrawn
and the rating is withdrawn.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as the
agency has received no objection certificates from the lenders.
This is consistent with the Securities and Exchange Board of
India's circular dated March 31, 2017 for credit rating agencies.
Ind-Ra will no longer provide analytical and rating coverage for
BPPL.
COMPANY PROFILE
Kolkata-based BPPL is engaged in the extraction of coal and
removal of overburden for the subsidiaries of Coal India Limited.
BPPL also undertakes the construction and maintenance of road
projects.
BPPL is promoted by Banowari Lal Agarwal, Liladhar Agarwal, Ajay
Agarwal and Sarita Devi Agarwal.
CHHATTISGARH FERRO: CRISIL Moves B+ Rating to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has been consistently following up with
Chhattisgarh Ferro Trades Private Limited (CFTPL) for obtaining
information through letters and emails dated January 15, 2018 and
February 21, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.5 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 Chhattisgarh Ferro Trades
Private Limited. Which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on Chhattisgarh Ferro Trades
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 Chhattisgarh Ferro Trades Private Limited to
'CRISIL B+/Stable Issuer not cooperating'.
CFTPL, based in Raipur, Chhattisgarh, was incorporated in 2005.
However, commercial operations started in 2010. Operations are
managed by Mr Manish Dhuppad, supported by his wife, Mrs Komal
Dhuppad. The company has a semi-integrated plant for
manufacturing angles and channels, along with ingots, which are
used for captive consumption (90-95%).
CREATIVE CLOTHEX: Ind-Ra Moves 'D' LT Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Creative
Clothex's (CRCL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based working capital limit (long-term)
migrated to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR4.5 mil. Non-fund-based working capital limit (short-term)
migrated to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR19 mil. Term loan (long-term) due on December 2018
migrated
to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 14, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated on 1997, CRCL is a Noida-based proprietorship firm
engaged in the manufacturing of knitted and woven garments such
as sportswear and casual wear for men, women (shorts, jackets,
Track Suits, Track Pants, T-shirts, etc.).
The firm supplies the readymade garments within India and has
long-standing relationships with some established and renowned
brands such as Adidas, Reliance, Aditya Birla, Asics and Rebook.
DHRUVTARA AGRO: CRISIL Raises Rating on INR5MM Cash Loan to B-
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Dhruvtara Agro And Allied
Industries Private Limited (DAAIPL) to 'CRISIL B-/Stable Issuer
Not Cooperating'. However, the management has subsequently
started sharing requisite information, necessary for carrying out
comprehensive review of the rating. Consequently, CRISIL is
migrating the rating on bank facilities of DAAIPL from 'CRISIL B-
/Stable Issuer Not Cooperating' to 'CRISIL D' and simultaneously
upgraded the ratings to 'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B-/Stable (Migrated from
'CRISIL B-/Stable Issuer Not
Cooperating' to 'CRISIL D' and
Simultaneously Upgraded to
'CRISIL B-/Stable')
Proposed Long Term
Bank Loan Facility 1 CRISIL B-/Stable (Migrated from
'CRISIL B-/Stable Issuer Not
Cooperating' to 'CRISIL D' and
Simultaneously Upgraded to
'CRISIL B-/Stable')
Term Loan 4 CRISIL B-/Stable (Migrated from
'CRISIL B-/Stable Issuer Not
Cooperating' to 'CRISIL D' and
Simultaneously Upgraded to
'CRISIL B-/Stable')
The rating downgrade takes into account the instance of delays in
term loan repayment thus, resulting in turning the account as
Non-performing asset (NPA) in the month of September, 2017, which
was regularized in the month of November, 2017. The simultaneous
rating upgrade reflects sufficient track record of timely debt
servicing maintained by DAAIPL since then.
The rating reflects the company's below-average financial risk
profile and modest scale of operations. These weaknesses are
partially offset by promoters' extensive experience in agro
industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: DAAIPL's financial risk
profile is marked by a weak capital structure (gearing ratio of 5
times as on March, 2017) and subdued debt protection metrics
(interest coverage ratio and net cash accruals to total debt of
1.16 times and 0.02 times in fiscal 2017).
* Modest scale of operations: With revenue of around INR26 crore
in fiscal 2017, scale remains small in the intensely competitive
agro industry. Business risk profile also remains susceptible to
risks inherent in this segment.
Strengths
* Extensive experience of promoters and established relationship
with key client: Presence of over two decades in the agro
industry has enabled the promoters to establish healthy
relationship with its suppliers and customers.
Outlook: Stable
CRISIL believes DAAIPL will continue to benefit over the medium
term from the experience of the promoters. The outlook may be
revised to 'Positive' if substantial increase in scale of
operations and operating profitability along with improvement
prudent working capital management strengthen financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
low cash accrual, stretched working capital cycle, or debt-funded
capital expenditure weakens financial risk profile.
Incorporated in 2013 as a private limited company, DAAIPL
processes food items such as wheat flour, maida, and sooji. Mr
Baban Phatke is the promoter.
ERODE CRITICAL: CRISIL Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has been consistently following up with Erode
Critical and Emergency Care Centre Private Limited (ECCPL) for
obtaining information through letters and emails dated January
15, 2018 and February 21, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 14 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 1 CRISIL D (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 Erode Critical And Emergency
Care Centre Private Limited. Which restricts CRISIL's ability to
take a forward looking view on the entity's credit quality.
CRISIL believes information available on Erode Critical And
Emergency Care Centre 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 Erode Critical And Emergency Care Centre Private
Limited to 'CRISIL D Issuer not cooperating'.
ECCPL, incorporated in 2013, runs a multispecialty hospital in
Erode, Tamil Nadu. Dr Mutukrishnan, manages the day to day
operations of the company.
ESSAR STEEL: CoC Leaning Towards Inviting Fresh Bids for Business
-----------------------------------------------------------------
Suresh P Iyengar at The Hindu Business Line reports that Essar
Steel's Committee of Creditors (CoC) is veering towards inviting
fresh bids for the company, paving the way for JSW Steel,
Vedanta, Tata Steel, ArcelorMittal and Numetal to make another
attempt to acquire it.
The lenders have sought legal opinion on calling for fresh bids,
The Hindu Business Line relates. A final decision will be taken
later this week as not all bankers favor going through the
process again, The Hindu Business Line states.
According to The Hindu Business Line, if the lenders agree, this
will be the third round of bidding for Essar Steel. The second
round was scrapped by the National Company Law Tribunal (NCLT) on
April 20 after it hauled up the lenders and the Resolution
Professional for not doing a thorough job in handling the bidding
process, The Hindu Business Line recounts.
While the NCLT had asked the CoC to consider the first round of
bids submitted by Numetal and ArcelorMittal, the CoC is exploring
whether to call for fresh bids to avoid legal complications, The
Hindu Business Line notes.
"The CoC had reviewed both bids of Numetal and ArcelorMittal.
However, with players like JSW Steel and Vedanta expressing
interest, there is a view that the financial bids received so far
were not meeting bankers' expectations," The Hindu Business Line
quotes a banking source as saying.
Both the existing bidders will get 30 days to rectify
deficiencies and approach the CoC again if the decision is to go
for a rebid, The Hindu Business Line says. If all goes well, one
of the bankers, as cited by The Hindu Business Line, said, Essar
Steel would fetch more than the defaulted amount of INR48,000
crore.
About Essar Steel
Incorporated in 1976, Essar Steel India Ltd. is a part of the
Essar Group and is having 10 MTPA integrated steel manufacturing
facilities at Hazira, Gujarat and iron ore beneficiation and
pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag,
Andhra Pradesh (8 mtpa). The company also owns and operates two
iron ore slurry pipelines -- one each in Odisha (Dabuna to
Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the
iron ore slurry from the beneficiation plant (located near the
iron ore mines in Dabuna and Kirandul) to the pellet plant
(located near the Paradip and Vizag ports). A large portion of
the iron ore pellets produced are intended for captive
consumption by ESIL's steel plant at Hazira for cost
optimization.
The National Company Law Tribunal (NCLT) - Ahmedabad Bench
admitted Essar Steel's insolvency case on Aug. 2, 2017.
Satish Kumar Gupta of Alvarez and Marsal India has been appointed
as interim resolution professional upon the suggestion of State
Bank of India (SBI).
Essar Steel owes more than INR45,000 crore to lenders, of which
INR31,671 crore had already been declared as non-performing as of
March 31, 2016, The Economic Times disclosed. The SBI-led
consortium of 22 creditors accounts for 93% of this amount. Essar
Steel owes $ 450.67 million to Standard Chartered Bank (SCB) in
debt.
ETA POWERGEN: CRISIL Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL Ratings has been consistently following up with ETA
Powergen Private Limited (ETA Powergen) for obtaining information
through letters and emails dated March 6, 2018 and March 9, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 18.88 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Proposed Long 11.34 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Working Capital 1.78 CRISIL D (Issuer Not
Term Loan 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 ETA Powergen, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on ETA
Powergen 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 ETA Powergen to 'CRISIL D Issuer Not Cooperating'.
ETA Powergen, a subsidiary of ETA Star Holdings Ltd, was
incorporated in 1999 and is part of the Dubai-based ETA group.
ETA Powergen owned and operated a 10-megawatt (MW) biomass power
plant in Tamil Nadu. The plant, which commenced operations in May
2009, used juliflora as biomass fuel. The company had short-term
agreements with industrial customers for sale of power. The plant
ceased operations in July 2015.
GEETHA KRISHNA: Ind-Ra Migrates B+ LT Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Geetha Krishna
Spinning Mills Private Limited's (GKSMPL) Long-Term Issuer Rating
to the non-cooperating category. The issuer did not participate
in the rating exercise despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using the rating. The rating
will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR70 mil. Term loan due on September 2023 migrated to Non-
Cooperating Category IND B+ (ISSUER NOT COOPERATING) rating;
-- INR120 mil. Fund-based facilities migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) /IND A4
(ISSUER
NOT COOPERATING) rating; and
-- INR40 mil. Non-fund-based facilities migrated to Non-
Cooperating Category with IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 21, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1993, Rajapalayam, Tamil Nadu-based GKSMPL is
engaged in the manufacturing and sale of cotton yarn in both cone
and hank forms. It manufactures carded and combed cotton yarn in
the count range of 40s-80s and value added yarns such as compact
and doubled yarn. The company has an installed capacity of 35,000
spindles.
INDRANI AUTOMOTIVE: Ind-Ra Moves 'BB' Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Indrani
Automotive & Engineering's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR22.50 mil. Fund-based working capital limit migrated to
non-cooperating category with IND BB (ISSUER NOT
COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR20.73 mil. Term loan due on May 2018 - July 2021 migrated
to non-cooperating category with IND BB (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 3, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
The firm was established as a partnership concern in 2003, and
started its commercial operations in 2005. It manufactures
automotive components for two and three wheelers.
JM INTERNATIONAL: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed J.M.
International's (JMI) Long-Term Issuer Rating at 'IND B+'. The
Outlook is Stable.
The instrument-wise rating action is:
-- INR250 mil. (increased from INR200 mil.) Fund-based working
capital limit affirmed with IND B+/Stable/IND A4 rating.
KEY RATING DRIVERS
The affirmation continues to reflect JMI's small scale of
operations, modest profitability and weak credit metrics owing to
the firm's presence in a highly fragmented and intensely
competitive spice industry. Its revenue increased to INR376.94
million in FY17 from INR324.33 million in FY16, with its EBITDA
margin declining to 1.76% from 2.01% during the period. The
increase in the revenue was driven by an increase in demand and
the decline in the EBITDA margin was due to an increase in the
prices of imported goods.
In FY17, JMI's interest coverage (operating EBITDA/gross interest
expense) was 1.45x in FY17 (FY16: 1.43x) and net financial
leverage (total adjusted net debt/operating EBITDAR) was 24.84x
(28.77x). The improvement in the net financial leverage was due
to a decline in the total debt.
The ratings are constrained by the proprietorship nature of the
firm.
The ratings, however, continue to derive strength from JMI's
comfortable liquidity, indicated by an average 83% utilization of
the fund-based limits for the 12 months ended March 2018.
The ratings also continue to be supported by the proprietor's
over three decades of experience in the spice industry and JMI's
strong relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: Any decline in the operating margin leading to any
deterioration in the credit metrics will be negative for the
ratings.
Positive: A substantial increase in the revenue, along with any
improvement in the credit metrics, will be positive for the
ratings.
COMPANY PROFILE
New Delhi-based JMI is a proprietorship concern engaged in the
trading of Indian and imported spices, especially cloves, in the
domestic market.
KUTTANAD RUBBER: CRISIL Lowers Rating on INR5.4MM Loan to D
-----------------------------------------------------------
CRISIL Ratings has been consistently following up for information
with The Kuttanad Rubber Co. Ltd. (TKRCL) for obtaining
information through letters and emails dated July 11, 2017 and
August 7, 2017 among others, apart from telephonic communication.
However, the issuer has remained non-cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit/ 2 CRISIL D (Issuer Not
Overdraft facility Cooperating; Downgraded
from 'CRISIL B/Stable/
Issuer Not Cooperating')
Long Term Loan 5.4 CRISIL D (Issuer Not
Cooperating; Downgraded
from 'CRISIL B/Stable/
Issuer Not Cooperating')
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 adequate information from TKRCL. This restricts
CRISIL's ability to take a forward-looking view on the credit
quality of the entity. CRISIL believes that the information
available for TKRCL is consistent with 'Scenario 1' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BB' rating category or lower.
CRISIL has downgraded its rating on the bank facilities of TKRCL
to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B/Stable/issuer
not cooperating'.
The rating downgrade reflects delay in interest servicing of debt
obligations by TKRCL. These delays have been due to weak
operating performance.
KRCL is a closely held public limited company and operates a
rubber plantation of around 440 acres in Kanjirapally (Kerala).
The company extracts raw rubber latex from its plantation and
sells it to local centrifuged latex (cenex; used in making
medical and surgical items) manufactures. The daily operations of
the company are managed by the executive director, Mr. Joseph
Thomas.
LOTUS PROJECTS: CRISIL Lowers Rating on INR7.5MM Cash Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on bank loan facilities
of Lotus Projects Private Limited (LPPL) to 'CRISIL D' from
'CRISIL BB-/Stable'. The rating downgrade reflects instances of
delay in repayment of term loan installment due to liquidity
mismatch.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.5 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Proposed Long Term 1.05 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB-/Stable')
Term Loan 11.45 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating also reflects LPPL's modest scale of operation in
highly fragmented industry, its vulnerability to seasonality in
production. The rating also takes into consideration its
liquidity mismatch leading to delay in term loan repayment
obligation. These weakness are partially offset by promoter's
extensive industry experience.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in a highly fragment industry: LPPL
faces intense competition from a highly fragmented tea industry
and presence of large established players. This has reflected in
its modest scale of operation at INR21.31 crore in fiscal 2017.
The highly unorganised segment in this market results in intense
competition and inability to significantly scale up operations
without facing profitability pressures.
* Vulnerability to seasonality in production and high operating
leverage: Tea is a seasonal product and its yield is monsoon
dependent; hence, poor weather conditions weaken tea production.
Furthermore, small players such as LPPL have limited pricing
power as tea prices are linked to auction prices and hence any
significant price movement affects the operating margin.
* Liquidity mismatch: LPPL has been exposed to risk of liquidity
mismatch due to uneven revenue realisation. This has resulted in
default against payment of dues to bank.
Strengths
* Promoters extensive experience: The promoters have over a
decade's experience in the tea industry. The company took over a
tea estate from New Chumta Tea Co Ltd. It has cultivated green
tea capacity of 40 lakh kilogram (kg) per annum.
Incorporated in 1994, LPPL is engaged in plantation and
processing of tea. On August 10, 2015, the company took over the
operations of a tea estate of New Chumta Tea Co Ltd, at a
purchase consideration of INR13.5 crores. LPPL has an annual tea
production capacity of 40 lakh kg.
NIRMANGHAR TRADERS: CRISIL Reaffirms B Rating on INR7MM Loan
------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facilities of Nirmanghar Traders Private Limited (NTPL) at
'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit/
Overdraft facility 7 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect modest scale of operations in the
highly fragmented ceramic products industry, and weak financial
risk profile. These weaknesses are partially offset by the
extensive experience of its promoters and established client
relationships.
Analytical Approach
Unsecured loans of INR1.56 crore as on March 31, 2017, from
promoters have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in fragmented segment: With an
operating income of INR47 crore for fiscal 2017, scale remains
modest in the intensely competitive ceramic tiles trading
segment. This limits the bargaining power with suppliers and
customers.
* Weak financial risk profile: Total outside liabilities to
adjusted net worth ratio was high at 4.90 times and net worth
modest at INR2.76 crore, as on March 31, 2017. Further debt
protection metrics of the company were average with interest
coverage of 1.6 times over the same period and financial risk
profile is expected to remain weak over the medium term.
Strength:
* Extensive experience of promoters and established client
relationship: The company's promoters have been trading in
ceramic and sanitary ware for over a decade, which has enabled
them to establish strong relationship with large suppliers such
as Somany Ceramics Ltd and Sunshine Tiles Company Pvt Ltd; and
gradually scale up product portfolio.
Outlook: Stable
CRISIL believes that NTPL's financial risk profile will remain
constrained over the medium term on account of its modest net
worth. The outlook may be revised to 'Positive' if financial risk
profile improves due to higher-than-expected cash accrual,
efficient working capital management, and funding from promoters.
The outlook may be revised to 'Negative' if financial risk
profile, particularly liquidity, deteriorates on account of
lower-than-expected cash accrual, sizeable working capital
requirement, or any further debt-funded capital expenditure.
Incorporated in 2011, NTPL is engaged in trading of tiles, bath
fittings, and sanitary wares. The company is an exclusive
distributor for tiles, plumbing fittings range, and sanitary
wares of Somany Ceramics Ltd and Sunshine Tile Company.
ORBIT ELECTRO: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Orbit Electro
Equipment's Private Limited's (OEEPL) Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR127.5 mil. Fund-based facilities migrated to Non-
Cooperating Category with IND BB (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 17, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Started in 2008, OEEPL manufactures electrical panels and fire
panels. It is also engaged in fabrication, powder coating and
wire harnessing. OEEPL's manufacturing unit is in Maharashtra.
ORIENTAL TEXTILES: CRISIL Lowers Rating on INR8MM Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facility of Oriental Textiles Industries (OTI) to 'CRISIL D' from
'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects delay in servicing interest on cash credit
facility due to weak liquidity. As on April 3, 2018, interest of
around INR30 lakh was due.
The firm also has a modest scale of operations in the intensely
competitive textiles industry and weak financial risk profile
because of high gearing and a muted interest coverage ratio.
These weaknesses are partially offset by the extensive experience
of its proprietor.
Key Rating Drivers & Detailed Description
* Delay in servicing interest on cash credit limit: The firm has
not paid interest on cash credit facility owing to stretched
liquidity.
Weakness
* Modest scale of operations in highly fragmented industry: With
an estimated operating income of INR30-31 crore in fiscal 2018,
scale remains small and may continue to be constrained by intense
competition over the medium term as well. This limits bargaining
power against customers and suppliers.
* Weak financial risk profile: Total outside liabilities to
tangible networth ratio was high at 3.54 times as on March 31,
2017. Debt protection metrics were weak, with interest coverage
ratio of 1.15 times in fiscal 2017. Financial risk profile is
expected to remain muted over the medium term.
Strengths
* Extensive experience of proprietor: Presence of more than three
decades in the woollen textile products trading segment has
enabled the proprietor to maintain healthy relationship with
customers and suppliers.
Set up in 1991 as a partnership firm by Mr Rajeev Goel, Ms Shashi
Goel, and Mr Anuj Goel; and reconstituted as a proprietorship
firm of Mr Rajeev Goel in December 2017, OTI trades in textile
products, especially woollen fabric, including premium blankets
and shawls. Registered office is in Ludhiana.
PAWAR PATKAR: CRISIL Migrates D Rating to Not Cooperating
---------------------------------------------------------
CRISIL Ratings has been consistently following up with Pawar
Patkar and D. S. Contractors Associates Private Limited (Pawar)
for obtaining information through letters and emails dated
January 15, 2018 and February 21, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 3 CRISIL D (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 Pawar Patkar and D. S.
Contractors Associates Private Limited, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Pawar Patkar
and D. S. Contractors Associates 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 Pawar Patkar and D. S. Contractors Associates
Private Limited to CRISIL D/CRISIL D Issuer not cooperating'.
Established in 2010 by Mr. R D Pawar, Pawar undertakes
government-funded civil construction projects in Nashik,
Maharashtra.
RAIHAN HEALTHCARE: CRISIL Lowers Rating on INR32MM LT Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Raihan Healthcare Private Limited (RHPL) to 'CRISIL
D' from 'CRISIL B/Stable'. The rating downgrade reflects
instances of delay in servicing term debt; the delays were on
account of weak liquidity arising from cash flow mismatches.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 32 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating continues to reflect the modest scale of operations,
geographic concentration in revenue, and below-average financial
risk profile. These rating weaknesses are partially offset by
extensive experience of the promoters in the healthcare industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Instances of delay in servicing term debt: RHPL has been
delaying servicing its term debt on account of weak liquidity.
* Modest scale of operations and geographic concentration in
revenue: The nascent stage of operations and concentration of
revenue in the Kottayam district of Kerala, keep the scale of
operations modest, as reflected in revenue of INR22.2 crore in
fiscal 2017. Geographical concentration restricts the customer
base and makes the company vulnerable to dynamics of a single
market; entry of any big player in the region could also
adversely affect the business risk profile.
* Below-average financial risk profile: Capital structure was
below-average, in the initial stage of operations, marked by
modest networth, and high gearing as on March 31, 2017. Debt
protection metrics remained below-average.
Strength
* Extensive experience of promoters in the healthcare industry:
The two decade-long experience of the promoters, Dr Mohammed
Ismail and Dr Satheesh in the field of medicine, and the wide
network of doctors and paramedical professionals, established
over the years, (which also ensures good quality of visiting
faculty at the hospital), will continue to support the business
risk profile.
RHPL, incorporated in 2014, is operating a super-specialty
hospital in Erattupetta (Kerala). Operations are managed by Dr
Mohammed Ismail and Dr Satheesh.
RAVINA HEALTH: CRISIL Lowers Rating on INR16MM Term Loan to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank loan
facilities of Ravina Health Care Private Limited to 'CRISIL D'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 16 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects instances of delay in interest payment
over the last 3 months.
The rating also continues to reflect the company's exposure to
risks related to implementation and occupancy of its upcoming
hospital in Chennai. These weaknesses are partially offset by its
promoters' extensive experience in the healthcare industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Instances of delay in interest payment over the last 3 months
There have been instances of delay in interest payment of the
term loan over the last 3 months. This is due to the delay in
start of commercial operations of the hospital.
* Exposure to risks related to implementation of, and occupancy
at, upcoming hospital: RHPL is constructing a 150-bed hospital in
Chennai at a cost of INR21.50 crore, funded through term loan of
INR15.75 crore and promoters' contribution of INR5.75 crore
either as equity or unsecured loan. RHPL proposes to commence
operations at its hospital by May - 2018. Being a new hospital,
demand for its services will increase only gradually as it
acquires trust among people in the region.
Strength:
* Promoters' extensive experience in healthcare industry: RHPL is
promoted by five doctors. While Dr A Sreenivasulu, Dr M V
Sathyanarayana (orthopaedic surgeons), Dr K Senthil (ENT [ear,
nose, throat], head, and neck injury), and Dr M A Srinivasarao
(anaesthesiologist) have extensive experience in Chennai, Dr
Surya Prakash Irakam is chairman, Department of Medicine, in
Somerset Medical Centre, New Jersey. The promoters expect to
bring in 25 doctors for the hospital.
RHPL, incorporated in 2011, is constructing a multi-speciality
hospital in Chennai, and is likely to commence commercial
operations by May 2018.
RUDRA AGRO: CRISIL Moves B Rating to Not Cooperating Category
-------------------------------------------------------------
CRISIL Ratings has been consistently following up with Rudra Agro
(RA) for obtaining information through letters and emails dated
January 15, 2018 and February 21, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 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 Rudra Agro. Which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Rudra
Agro 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 Rudra Agro to 'CRISIL B/Stable Issuer not
cooperating'.
RA, set up as a partnership firm by Mr Pankaj Sharma and Mr Sunil
Kumar in 2016, started commercial operations in August 2016. The
firm mills and processes basmati rice. Its production facilities
at Alipur in New Delhi have a milling and sorting capacity of 8
tonne per hour.
SHAKTI COT: CRISIL Moves B+ Rating to Not Cooperating Category
--------------------------------------------------------------
CRISIL has been consistently following up with Shakti Cot Fibers
(SCF) for obtaining information through letters and emails dated
February 23, 2018 and March 27, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Term Loan 2.25 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 Shakti Cot Fibers. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Shakti Cot Fibers 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 Shakti Cot Fibers to 'CRISIL B+/Stable Issuer not
cooperating'.
Established in 2013, SCF is a partnership firm promoted by Mr
Umesh Patel and family.Located at Kadi (Gujarat), the firm is in
the business of cotton ginning and pressing.
SHINING STAR: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shining Star
Solutions & Services Private Limited's Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the rating exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND B- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR254 mil. Non-convertible debentures due on September 26,
2018 ISIN INE551P07019, 6% coupon rate issued on September
26, 2013 migrated to Non-Cooperating Category with IND B-
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 24, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
The company was incorporated in September 2013 to provide various
support services in areas of human resources, administration,
information technology, primarily to financial services companies
globally.
SHIW PRASAD: Ind-Ra Maintains BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shiw Prasad
Jyoti Prasad's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The ratings will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR800 mil. Fund-based working capital limit maintained in
non-cooperating category with IND BB (ISSUER NOT
COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 6, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shiw Prasad Jyoti Prasad was set up in 2001 in Odisha for the
retailing of liquor for various brands. The firm has around 40
retail shops across 14 districts in the state.
SRI SITARAMANJANEYA: CRISIL Moves B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Sri
Sitaramanjaneya Sortex (SSRS) for obtaining information through
letters and emails dated January 15, 2018 and February 21, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Export Packing 6 CRISIL B+/Stable (Issuer Not
Credit Cooperating; Rating Migrated)
Proposed Cash 4 CRISIL B+/Stable (Issuer Not
Credit Limit 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 Sri Sitaramanjaneya Sortex.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Sri Sitaramanjaneya Sortex 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 Sri Sitaramanjaneya Sortex to 'CRISIL B+/Stable
Issuer not cooperating'.
SSRS was established in 2005 by Mr Vinod Kumar Agarwal and his
wife, Mrs Usha Agarwal. The company, based in Kakinada, Andhra
Pradesh, trades in agro food commodities such as raw, par boiled,
and broken rice. The partners have also established Sarala Foods
Pvt Ltd. (SFPL) in 2005 which is engaged in the trading of agro
food commodities like raw rice, par boiled and broken rice,
cashew nus and mung beans.
SUPREME HOUSING: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Supreme
Housing and Hospitality Private Limited's (SHHL) Long-Term Issuer
Rating in the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests
and follow-ups by the agency. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR3,900 bil. Long-term loan (long-term) maintained in Non-
Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 27, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SHHL was incorporated as a private limited company on November
20, 2006. The company is engaged in real estate development. The
company is in the process of developing a commercial and
residential complex in Mumbai (Supreme City) and has acquired the
development rights for the project. The commercial complex
comprises an IT park and a residential complex of villas and
service apartments. SHHL has no ongoing projects other than
Supreme City.
SUSHILA INTERNATIONAL: CRISIL Withdraws D Rating INR3.5MM Loan
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Sushila
International (SI) for obtaining information through letters and
emails dated February 15, 2018, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 3.5 CRISIL D/Issuer Not
Cooperating (Issuer Not
Cooperating; Rating
Withdrawal)
Cash Credit 2.0 CRISIL D/Issuer Not
Cooperating (Issuer Not
Cooperating; Rating
Withdrawal)
Packing Credit 13.0 CRISIL D/Issuer Not
Cooperating (Issuer Not
Cooperating; Rating
Withdrawal)
Proposed Long Term 10.13 CRISIL D/Issuer Not
Bank Loan Facility Cooperating (Issuer Not
Cooperating; Rating
Withdrawal)
Term Loan 1.37 CRISIL D/Issuer Not
Cooperating (Issuer Not
Cooperating; Rating
Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are 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 SI. This restricts CRISIL's
ability to take a forward SI is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of SI
continues to be 'CRISIL D/CRISIL D/Issuer Not Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of SI on
the request of the company and receipt of a no objection/due
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans.
SI, set up in 1980, manufactures fabric used for making shirts.
Its manufacturing facilities are in Tarapur, Maharashtra, and
operations are managed by Mr Dinesh Arya and his family members.
TARA SYNTEX: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Tara Syntex
Private Limited's (TSPL) Long-Term Issuer Rating in 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 the rating. The rating
will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on
the agency's website.
The instrument-wise rating action is:
-- INR50 mil. Fund-based facility maintained in Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 25, 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 1986, Surat-based TSPL manufactures ethnic
apparels for women. The company has branches in New Delhi,
Gujarat, Ambala, Amritsar, and Ludhiana.
TRIMURTI FLOUR: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Trimurti Flour
Mill Private Limited's (TFMPL) Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR14.87 mil. Long-term loans (long-term) due on March 2019
migrated to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR60 mil. Fund-based limits (long-term) migrated to Non-
Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 7, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated on December 2010, TFMPL is engaged in processing of
wheat in Patna. The day-to-day operations of the company are
managed by Mr. Abhishek Sinha.
VIDEOCON GROUP: Wants NCLT to Consolidate All Insolvency Cases
--------------------------------------------------------------
The Hindu Business Line reports that debt-ridden Videocon Group
on April 25 approached the principal bench of the National
Company Law Tribunal (NCLT) requesting it to direct all
insolvency case, filed by its lenders against seven group
companies at different courts of Mumbai bench, to be heard
together.
The group has requested the principal bench sitting here to
consolidate all multiple insolvency cases filed by lenders at
three different courts of NCLT Mumbai and hear together, The
Hindu Business Line relates.
According to The Hindu Business Line, the principal bench of
NCLT, headed by President Justice MM Kumar, has directed the
Videocon Industries to file an affidavit having details of its
group companies and courts where insolvency matters are pending.
The principal bench has directed to list immediately the matter
once affidavit is filed by Videocon Industries, The Hindu
Business Line discloses.
Videocon is on the second list of 28 defaulters by the Reserve
Bank of India (RBI) under the Insolvency and Bankruptcy Code.
=========
J A P A N
=========
KOBE STEEL: Egan-Jones Lowers FC Senior Unsecured Ratings to BB
---------------------------------------------------------------
Egan-Jones Ratings Company, on April 13, 2018, downgraded
the foreign currency senior unsecured rating on debt issued by
Kobe Steel Ltd. to BB from BB+.
Kobe Steel, Ltd., operating worldwide under the brand Kobelco, is
a major Japanese steel manufacturer headquartered in Chuo-ku,
Kobe. Kobe Steel also has a stake in Osaka Titanium Technologies.
=====================
N E W Z E A L A N D
=====================
FORESTLANDS: FMA Seeks Liquidation for 18 Companies
---------------------------------------------------
NZ Herald reports that the Financial Markets Authority has
applied to the High Court for 18 Forestlands companies to be put
into liquidation, with the court having ordered that the
companies' tax debts can be paid from money held in trust.
The FMA began investigating Forestlands in March last year, with
concerns about fair distribution to investors across the
companies, and the companies having failed to file financial
statements, NZ Herald recounts. It referred the issue to the
Serious Fraud Office and investigations by both agencies are
ongoing. When the FMA began investigating, it identified funds
worth $18 million -- the net proceeds from asset sales minus some
deductions to repay loans from entities associated with director
Rowan Kearns -- which were placed in trust to protect investors'
interests, NZ Herald relates.
According to NZ Herald, the judge considered the FMA's submission
that the tax debt could be paid by other companies related to
Kearns, but said insolvency experts KordaMentha were still
reviewing the appropriateness of those repayments, and he was
"not therefore in a position to direct payment of the IRD debts
from any source other than the sum on deposit."
Justice Matthew Muir, as cited by NZ Herald, said an affidavit
from the Forestlands companies' accountant, Wayne Anderson,
confirmed that the 10 businesses had "substantial net asset
positions after payment of core tax liabilities and interest" and
could pay their debts in full, so there was no evidence of
insolvency or that the IRD would be treated as preferential
creditors by the order being made.
The FMA's liquidation application was brought on multiple
grounds, the court said, including "delay on the part of the
companies' director Kearns in notification to the shareholders of
the sale of the companies' forestry assets, lack of progress with
regard to distribution of the proceeds, failure to maintain an
accurate share register, failure to keep adequate accounting
records and what is alleged to be persistent failure to comply
with the relevant reporting requirements", NZ Herald notes.
=================
S I N G A P O R E
=================
AVATION PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 16, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Avation PLC to BB from BBB-.
Avation PLC was founded in 2006 and is headquartered in
Singapore. The company owns a range of commercial passenger
aircraft; and supplies new and refurbished aircraft parts.
*********
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 2018. 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.
*** End of Transmission ***