/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180514.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 Monday, May 14, 2018, Vol. 21, No. 094 Headlines A U S T R A L I A FC11 PTY: Former Owner's Creditors Chase New Gym Operator FRESHZEST PTY: Second Creditors' Meeting Set for May 21 JAMIE OLIVER: Deal for Sale of 5 Italian Restaurants Sealed KOOLCATS ENTERPRISES: First Creditors' Meeting Set for May 22 MUSCON CIVIL: First Creditors' Meeting Set for May 21 ROMMIT HOMES: First Creditors' Meeting Set for May 22 SPICEZEST PTY: Second Creditors' Meeting Set for May 21 TUNNELCORP PTY: Second Creditors' Meeting Set for May 21 C H I N A TAHOE GROUP: S&P Withdraws 'B-' Long-Term Issuer Credit Rating TAHOE GROUP: S&P Cuts Issuer Credit Rating to B-, Outlook Stable ZHONG HAI: S&P Withdraws 'B' Issuer Credit Rating I N D I A ABHINAASH AGROFOOD: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ADITHYA GLOBAL: CARE Assigns B+ Rating to INR25.20cr LT Loan AGARWAL JEWELERS: Ind-Ra Maintains BB- Rating in Non-Cooperating ANN PRODUCTS: CARE Assigns B+ Rating to INR9.75cr LT Loan ANONDITA HEALTHCARE: CARE Assigns B+ Rating to INR9.0cr LT Loan B D CORPORATES: CRISIL Reaffirms B+ Rating on INR27.7MM Loan BHADRESH TRADING: Ind-Ra Maintains 'D' Rating in Non-Cooperating BINANI CEMENT: SC Rejects Dalmia's Plea Challenging NCLAT's Order BIVAB DEVELOPERS: CRISIL Migrates B Rating to Not Cooperating CHUNILAL MOTIRAM: Ind-Ra Maintains 'B-' Rating in Non-Cooperating DUTCH TECH: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Stable ELYSIUM PHARMACEUTICALS: Ind-Ra Affirms BB Rating, Outlook Stable ETHOS POWER: Ind-Ra Raises Long-Term Issuer Rating to BB FLEXITUFF INTERNATIONAL: ICRA Cuts Rating on INR293cr Loan to B+ GANGA DIAGNOSTIC: ICRA Keeps B+ Rating in Not Cooperating HARAN CHANDRA: ICRA Removes D Rating From Not Cooperating Cat. HARIOM PROJECTS: Ind-Ra Migrates 'BB' Rating to Non-Cooperating HARMAN EXPORTS: CARE Assigns 'B' Rating to INR15cr LT Loan HARMAN RICE: CARE Assigns B+/A4 Rating to INR30cr Bank Loan KAUSHALYA SPINNERS: CRISIL Withdraws B+ Rating on INR5.28MM Loan KEEN AND CORE: CRISIL Moves B- Rating to Not Cooperating Category ISHAAN METALS: ICRA Reaffirms B+ Rating on INR10cr Cash Loan LEADER VALVES: Ind-Ra Assigns 'BB+' Issuer Rating, Outlook Stable MAHIDHARA PROJECTS: CRISIL Lowers Rating on INR5MM Loan to D MASSIMO ENTERPRISE: ICRA Withdraws B Rating on INR9.75cr Loan MODWAY SUITING: ICRA Assigns B+ Rating to INR7cr Term Loan OMEGA PREMISES: CRISIL Moves B Rating to Not Cooperating Category PARADISE HEALTHCARE: CARE Assigns 'B' Rating to INR4.60cr Loan PIONEER EMBROIDERIES: CRISIL Cuts Rating on INR15MM Loan to D PK FOODS: Ind-Ra Maintains 'B+' Issuer Rating in Non-Cooperating PRAGATI EDIBLE: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating R.V. INFRASTRUCTURAL: CARE Assigns B+ Rating to INR0.40cr Loan RAJ-SNEH AUTO: CRISIL Migrates B Rating to Not Cooperating SANSIDH AGRO: CRISIL Lowers Rating on INR9MM Cash Loan to B+ SHANTDEEP METALS: CRISIL Reaffirms B+ Rating on INR10MM Loan SHARDIYA AGRITECH: CARE Assigns B+ Rating to INR4.57cr LT Loan SHREE VENTURES: CRISIL Moves D Rating to Not Cooperating Category SREE ANJANEYA: CRISIL Lowers Rating on INR24MM LT Loan to D SRI ADISANKARACHARYA: CRISIL Reaffirms B Rating on INR12MM Loan STERLING BIOTECH: Andhra Bank Files Insolvency Bid Against Firm SULOCHANA EXPORTS: CARE Assigns B Rating to INR5.0cr LT Loan SUNRAJ CERAMIC: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating SWASTIK CHEMICALS: CRISIL Reaffirms B+ Rating on INR9MM Loan TOBACCO TRADING: CARE Assigns B+ Rating to INR12cr LT Loan VMD MILLS: Ind-Ra Maintains BB- Issuer Rating in Non-Cooperating WIINTRACK EXPORTS: ICRA Maintains D Rating in Not Cooperating I N D O N E S I A MNC INVESTAMA: S&P Raises ICR to 'B-', Outlook Stable J A P A N * JAPAN: Corporate Bankruptcies Hit 28-year Low in April N E W Z E A L A N D CBL CORP: Administrators Recommend Liquidation S I N G A P O R E VIKING OFFSHORE: Posts SGD2.1 Million Q1 Net Loss - - - - - ================= A U S T R A L I A ================= FC11 PTY: Former Owner's Creditors Chase New Gym Operator --------------------------------------------------------- Australian Leisure reports that a gym operator in Brisbane's Fortitude Valley is being chased for debts incurred by the previous operators of his gym. Ross Macleod, who runs the X-Centre gym in Fortitude Valley, is being chased by people owed money from FC11 Pty Ltd, which ceased operating in February, the report says. Australian Leisure relates that a liquidator's report released last week advises that the Melbourne-based business owed just over AUD5 million to creditors. According to Australian Leisure, Mr. Macleod told Brisbane newspaper The Courier-Mail that he has even had to fend off at least four lawsuits from irate FC11 creditors who mistakenly believe he was tied to the collapsed firm. Mr. Macleod, who chose not to change the name of the gym when he took over its operations, told The Courier-Mail "it might be a necessary evil because of all this negative blowback." "In hindsight, I should have rebranded." After FC11 was reportedly evicted in December over unpaid rent, Mr. Macleod brokered a deal with the landlords to take over the Brunswick Street gym starting in early February, Australian Leisure recalls. The report relates that Mr. Macleod bought some of the leased equipment and he's now working with liquidators to purchase the remaining gear. Many elite athletes are reportedly among the clientele of the X- Centre, which previously offered 'sports education' classes and reportedly claimed to have had an alliance with the University of Queensland, Australian Leisure adds. FRESHZEST PTY: Second Creditors' Meeting Set for May 21 ------------------------------------------------------- A second meeting of creditors in the proceedings of Freshzest Pty Ltd has been set for May 21, 2018, at 12:00 p.m. at The Institute of Chartered Accountants Australia and New Zealand, Training Room 4, Level 18 Bourke Place, 600 Bourke 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 18, 2018, at 4:00 p.m. David Ross, Richard Albarran and Kathleen Vouris of Hall Chadwick were appointed as administrators of Freshzest Pty on April 13, 2018. JAMIE OLIVER: Deal for Sale of 5 Italian Restaurants Sealed ----------------------------------------------------------- Australasian Lawyer reports that a trio of top firms sealed the deal for the purchase of five Jamie Oliver restaurants in Australia. Thomson Geer acted for the Hallmark Group, which has agreed to buy five Jamie's Italian restaurants, Australasian Lawyer discloses. King & Wood Mallesons advised the Jamie Oliver Restaurant Group Australia, which has been placed into voluntary administration after the purchase contracts were finalised. K&L Gates acted for the voluntary administrators from BDO. The report says financial details of the deal - which includes restaurants in Sydney, Parramatta, Brisbane, Perth and Adelaide - have not been disclosed. The deal resulted in the closure of the Jamie's Italian restaurant in Canberra. M&A partner Eugene Fung led the Thomson Geer team, which included lawyer Sarah Dean, the report states. This is the second time the Jamie's Italian business in Australia has tried a turnaround, Australasian Lawyer notes. Last year, Ashurst advised Jamie's Italian and the Jamie Oliver Restaurant Group Australia as it bought back the restaurants from Keystone Group, which entered administration in 2016. Herbert Smith Freehills acted for the receivers and managers of Keystone, while K&L Gates acted for the administrators of Keystone, Australasian Lawyer says. Andrew Sallway, James White and Andrew Fielding of BDO were appointed as administrators of Jamie Oliver Restaurant Group (Australia) Pty Ltd, trading as Jamie's Italian Restaurants, on April 16, 2018. KOOLCATS ENTERPRISES: First Creditors' Meeting Set for May 22 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Koolcats Enterprises Pty Ltd, trading as Big T'z Diner, will be held at Level 28, 108 St Georges Terrace, in Perth, WA, on May 22, 2018, at 10:00 a.m. Martin Bruce Jones and Wayne Anthony Rushton of Ferrier Hodgson were appointed as administrators of Koolcats Enterprises on May 10, 2018. MUSCON CIVIL: First Creditors' Meeting Set for May 21 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Muscon Civil Pty Ltd, trading as Musgrave Construction, will be held at the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram Street, in West Perth, WA, on May 21, 2018, at 11:00 a.m. Kimberley Stuart Wallman of HLB Mann Judd was appointed as administrator of Muscon Civil on May 10, 2018. ROMMIT HOMES: First Creditors' Meeting Set for May 22 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Rommit Homes Pty Ltd will be held at the offices of Worrells Solvency & Forensic Accountants, Suite 1103, Level 11, 147 Pirie Street, in Adelaide, SA, on May 22, 2018, at 10:30 a.m. Nicholas David Cooper and Dominic Charles Cantone of Worrells Solvency were appointed as administrators of Rommit Homes on May 10, 2018. SPICEZEST PTY: Second Creditors' Meeting Set for May 21 ------------------------------------------------------- A second meeting of creditors in the proceedings of Spicezest Pty Ltd has been set for May 21, 2018, at 11:00 a.m. at The Institute of Chartered Accountants Australia and New Zealand, Training Room 4, Level 18 Bourke Place, 600 Bourke 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 18, 2018, at 4:00 p.m. David Ross, Richard Albarran and Kathleen Vouris of Hall Chadwick were appointed as administrators of Spicezest Pty on April 13, 2018. TUNNELCORP PTY: Second Creditors' Meeting Set for May 21 -------------------------------------------------------- A second meeting of creditors in the proceedings of Tunnelcorp Pty Ltd has been set for May 21, 2018, at 3:00 p.m. at the offices of SV Partners, 22 Market 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 18, 2018, at 4:00 p.m. Matthew John Bookless of SV Partners were appointed as administrators of Tunnelcorp Pty on April 12, 2018. ========= C H I N A ========= TAHOE GROUP: S&P Withdraws 'B-' Long-Term Issuer Credit Rating -------------------------------------------------------------- S&P Global Ratings withdrew its 'B-' long-term issuer credit rating on Tahoe Group Co. Ltd. and its 'CCC+' long-term issue rating on the company's guaranteed senior unsecured notes at Tahoe's request. S&P said, "The stable outlook at the time of withdrawal reflects our view that Tahoe will proactively manage its liquidity through improving cash collection, and controlling land acquisitions. We also expect Tahoe to control its leverage and shift its refinancing away from alternative financing in the next 12 months to gradually improve its capital structure." TAHOE GROUP: S&P Cuts Issuer Credit Rating to B-, Outlook Stable ---------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on China-based property developer Tahoe Group Co. Ltd. to 'B-' from 'B'. The outlook is stable. At the same time, S&P lowered its long-term issue rating on the company's senior unsecured notes to 'CCC+' from 'B-'. S&P said, "We lowered the rating on Tahoe because the company's leverage is significantly higher than our expectation, stemming from weak cash collection and an aggressive expansion appetite, leading to unsustainable dependency on debt financing. We also believe the company's liquidity position is tight and it faces high refinancing risk given high short-term debt and a high proportion of alternative financing in its debt mix." Tahoe's cash collection rate of less than 40% in 2017 is significantly weaker than the industry average of 70%-80%. Despite strong sales of Chinese renminbi (RMB) 100 billion in 2017, total operating cash inflow was only RMB32 billion. S&P believes this low cash collection rate is due to high unit prices for its properties, and installment payment arrangements for buyers. Other factors include restrictive policies in Beijing leading to construction delays and slow release of mortgage funding. S&P said. "We expect Tahoe's cash collection rate to moderately improve to about 50% in 2018 based on the company's realigned focus on cash generation, rather than on pure sales growth. However, even at this level, the company's operating cash flow may still remain negative and provide little relief to its stretched liquidity position. "We believe Tahoe will face material refinancing pressure in the next 12 months. The company has high short-term debt of RMB44 billion maturing in 2018 and RMB50 billion in 2019, compared with unpledged cash of RMB13 billion available at the end of 2017. In addition, the developer's capital structure is unbalanced, in our view, because 60% of debt maturing in the next two years was obtained via trust companies and asset management plans. We believe these alternative financing channels are high risk given the Chinese government's focused efforts to reduce shadow banking activities. "However, so far this year, Tahoe has refinanced about RMB11 billion in debt plus obtained new credit of RMB15 billion, which we view as satisfactory progress. The company has also progressively shifted away from alternative financing with new credit generated from bank loans and standard debt securities. Furthermore, only about 10% of maturing debt is from asset management plans, which are most vulnerable, while another 50% in the form of trust loans are more manageable. "We continue to see Tahoe's risk appetite as aggressive and expect the pace of deleveraging to be gradual in the next 12 months. The company spent more than RMB55 billion in new land purchases in 2017, well exceeding its cash collected from sales. In the first four months of 2018, Tahoe acquired a further RMB4 billion worth of new land according to a public third party source. The company's reported debt increased to RMB135 billion at the end of 2017, from RMB75 billion a year ago. "We expect Tahoe will only moderately improve its financial leverage, from a very high base of 20x debt-to-EBITDA in 2017. This assumes the company improves its revenue recognition from faster construction and turnover, while maintaining control of its debt growth. "The stable outlook reflects our view Tahoe will proactively manage its liquidity through improving cash collection, and controlling land acquisitions. We also expect Tahoe to control its leverage and shift its refinancing away from alternative financing in the next 12 months to gradually improve its capital structure. "We may lower the rating if Tahoe's liquidity position weakens due to failure to increase cash collection from sales, or an inability to secure refinancing at a reasonable cost. We could also lower the rating if leverage does not improve such that the EBITDA interest coverage continues to be sustainably below 1x in the next 12-18 months. "We could raise the rating if we see improvement in Tahoe's liquidity position to an adequate level (above 1.2x sources versus uses in the next 12 months) with stronger cash collection and controlled land acquisitions. This should also lead to significantly improved operating cash flow such that there is stronger financial leverage improvement than our expectation of a debt-to-EBITDA ratio of 17x in 2018. At the same time, the company will need to make a marked improvement in its capital structure in terms of composition of financing channels, debt maturity profile, and funding cost." ZHONG HAI: S&P Withdraws 'B' Issuer Credit Rating ------------------------------------------------- S&P Global Ratings withdrew its 'B' issuer credit rating on Zhong Hai Sheng Rong (Beijing) Capital Management at the company's request. ========= I N D I A ========= ABHINAASH AGROFOOD: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Abhinaash Agrofood Industries Private Limited's (AAFIPL) Long-Term Issuer Rating to 'IND D' from 'IND B+', while simultaneously migrating it to the non-cooperating category. The Outlook was Stable. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Thus, the rating is 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: -- INR30 mil. Fund-based working capital limit (Long-term) downgraded and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; and -- INR32.56 mil. Term loan (Long-term) due on September 2022 downgraded and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information. KEY RATING DRIVERS The downgrade reflects delays in debt servicing by AAFIPL due to a tight liquidity position. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would be positive for the ratings. COMPANY PROFILE AAFIPL was incorporated in 2014 and commenced commercial operations in March 2015. The company has a rice milling capacity of 18,000 tons per annum in Jharkhand. It caters to both domestic as well as overseas markets. ADITHYA GLOBAL: CARE Assigns B+ Rating to INR25.20cr LT Loan ------------------------------------------------------------ CARE Ratings has assigned rating to the bank facilities of Adithya Global Health Care Private Limited (AGHCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 25.20 CARE B+; Stable Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of AGHCPL are tempered by financial closure not yet achieved and risk towards project execution and stabilization of operations, competitive nature of operations and availability of medical professionals. However, the ratings are underpinned by the experience of the promoters and management in health care services, location advantage, wide range of proposed healthcare services, and stable outlook of healthcare industry. Going forward, ability of the company to successfully execute the project undertaken, without time and cost overruns and the ability to initiate business operations as envisaged and to stabilize business operations post commencement and achieve occupancy rates as envisaged will be key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Financial closure not achieved and risk of project execution and stabilization of operations: The Company has not yet achieved the financial closure for setting up of the unit. Currently, the company has entered into an agreement for purchase of 894.34 sq yards of land. The company is yet to obtain majority of the statutory and regulatory clearances such as registration with Health Medical & Family Welfare department for 150 beds, Drugs license, Registration with Labour Inspector, Pollution Control Board Authorization etc. As on March 31, 2018, the company has incurred 7.11 crore (about 21.51% of the total cost of the project) towards the advance towards land, builder and preliminary and preoperative expenses and the same has been funded by the promoters' contribution. Further, the day to day working capital needs shall be managed by a cash credit facility (proposed) with a limit of INR 2.25 crore. The completion of the project without any cost and overrun and stabilization of business operations shall remain critical from credit perspective. The project is expected to be completed by March 31, 2019 and the commercial operations are expected to start on April 1, 2019. Competitive nature of industry: Healthcare is a confidence- intensive sector wherein any mishandling of a case or negligence on part of any doctor and/or staff of the unit can lead to distrust among the public. Further, word-of-mouth and reputation play a major role while attracting patients. Further, the hospital sector is highly fragmented with few large players in the organized sector and numerous small payers in the unorganized sector leading to high level of competition in the sector. The key challenge for the healthcare industry is the acute shortage of trained personnel, ranging from doctors, nurses, technicians and even healthcare administrators. The hospital faces competition from several established multi- specialty hospitals. Availability of medical professionals: One of the major problems faced by most private hospitals is retention of medical professionals - doctors, paramedical, lab technicians etc, who are essential for their operation. AGHCPL proposes to recruit over 60 doctors and other technicians. Retention of these professionals while providing good healthcare services will be a challenge for the company. Key Rating Strengths Experienced promoter and management in various fields of health care services: AGHCPL is being promoted by Mr Suresh Naidu (Managing Director) who has close to two decades of experience in the field of health care services. The company also has an associate concern, Aditya Multicare Hospital which is in similar line of business and has been established in 2004. The company is expected to gain benefit from the experience of its promoters and established brand image of its associate concern. Location advantage: The hospital is proposed to be set up in Vishakhapatnam, a major commercial hub in Andhra Pradesh. It is one of the biggest cities of Andhra Pradesh both in terms of area and population. The rural Vishakhapatnam, Vizianagaram District, Srikakulam District and surrounding districts of Odisha depend on the health care services provided in the Vishakhapatnam city. Further, the location of the hospital, Waltair Road is one of the prime locations in Vishakapatanam. Thus, due to the cosmopolitan nature of the city, AGHCPL is expected to see increase in demand in the coming years. Wide range of healthcare services proposed: The management proposes to provide core specialties for Orthopedics, Surgical Oncology, Laparoscopic Surgeries, and Kidney Transplantation etc along with other clinical support services. Further, there shall be departments for Neuro-sciences, Renal-sciences, Pulmonology and Hepatology, ENT, cardiology, Critical Care and Intensive Care Medicine, Orthopedics and Joint Replacement, Plastic Surgery and Cosmetic Surgery, Department of Gynecology and Pediatrics, Department of General Surgery and Department of General Medicine, Endocrinology and diabetic Care. Stable outlook for healthcare industry: The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. It is one of the fastest growing sectors and in the coming 10 years it is expected to reach $275 billion. The country has also become one of the leading destinations for high- end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep. It is predicted that with increased digital adoption, the Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020. Based in Vishakhapatnam (Andhra Pradesh), Adithya Global Health Care Private Limited (AGHCPL) proposes to open a 150 bed multi- specialty hospital at Waltair Ward, Vishakhapatnam. The company was incorporated in 2015 by Mr Suresh Naidu (Managing Director). AGHCPL has an associate concern, M/s Aditya Multicare Hospital in Vishakhapatnam which was established in 2004 and is engaged in similar line of business. AGHCPL is proposed to provide health care services in Orthopedics, Surgical Oncology, Laparoscopic Surgeries, and Kidney Transplantation along with other clinical support services. AGHCPL is currently in project stage. The total cost of the project is Rs 33.05 crore which is being funded by promoter's contribution of Rs 10.35 crore (31.31% of total cost of the project) and a term loan of Rs 22.70 crore (68.69% of total cost of the project). As on March 31, 2018, the company has incurred Rs 7.11 crore worth expenses as part of margin money and made advance payment for purchase of land and hospital building. The commercial operations of AHCPL are expected to start from April, 2019. AGARWAL JEWELERS: Ind-Ra Maintains BB- Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained M/s. Agarwal Jewelers' 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 these ratings. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR28.6 mil. Long-term loans maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 21, 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 1996, M/s. Agarwal Jewellers is a Bhopal-based partnership firm, engaged in the trading of gold and silver jewelry in Roshanpura, TT Nagar, Bhopal. ANN PRODUCTS: CARE Assigns B+ Rating to INR9.75cr LT Loan --------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Ann Products and Machines Private limited (APM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.75 CARE B+; Stable Assigned Detailed Rationale and key rating drivers The rating assigned to the bank facilities of APM is constrained by limited experience of promoters in food processing industry, project stabilization risk associated with debt funded project coupled with debt funding not tied up. The ratings are further constrained by competitive nature of the frozen food industry, high working capital intensity in the business and susceptibility of margins to fluctuation in agro-based raw material prices. The ratings, however, draw comfort from Association with established brand "Patanjali", favorable industry scenario. Going forward; ability of the company to achieve the projected operating income and profitability margins while improving its capital structure shall be the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Limited experience of promoters in food processing industry: APM is currently in processing of acquiring a processing facility for processing of fruits and vegetables which is a new venture for its promoters who do not have any previous experience in the business. The promoters of company, Mr. Vivek Gupta had an experience of more than two decades in construction and manufacturing industry. Mr. Sachin Pandey had an experience of more than one decade in real estate and trading industry. Both the promoters shall look after the day-to-day operation of the company. They have ventured into food processing industry due to the increasing demand of ready-to-cook food products and favorable government policies to support the same. Project stabilization risk associated with debt funded project coupled with debt funding not tied up: APM is in process to acquire a unit set up for production of various food products like tomato soup, concentrates, sauce, puree, ketchup, fruit jam and jelly, pickles etc. with a total project cost of INR 12.50 crores to be funded through term loan of INR9.25 crores and balance through promoter's contribution. The debt for the same is yet to be tied up. Hence, it exposes the company to funding risk. Furthermore, stabilization of the manufacturing facilities to achieve the envisaged scale of business associated with the products in the light of competitive nature of industry remains crucial for the company. Raw material prices dependent on agro-climactic conditions: The major raw material for the company consists of vegetables and fruits. The prices of which are highly fluctuating because of their seasonal availability and other factors like irregularity of climatic condition to unpredictable yields. However, the risk is partially mitigated by the fact that the raw material will be supplied to the company from Patanjali Ayurved Limited itself. Competition from organized and unorganized sectors: The nature of business of the company is highly competitive with presence of highly established players. APM is exposed to intense competition from organized domestic and international brands Kissan, Del Monte etc. Apart from the organized players, the company faces challenge from various smaller players in the market. Moreover, the business is also susceptible to changing preferences of consumers towards products, brands, etc. Key Rating Strengths Association with established brand: "Patanjali" The company has entered into an agreement with Patanjali Ayurved Limited (PAL) for manufacturing, packing and selling of food and edible items for tenure of 7 years with the assured supply of basic raw materials & buy back arrangements. Company's association with PAL and will provide broad support with respect to the product off take and reputed customers base ensures timely realization of receivables. Industry Outlook: The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The Indian food and grocery market is the world's sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country's total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. Also, busier consumer lifestyle, rising purchasing power, rapid urbanization and increase in population of the country has led to fuelling the demand and development of food processing industry. Delhi based ANN Products and Machines Private limited (APM) was incorporated in December 27, 2016 by Mr. Vivek Gupta and Mr. Sachin Pandey. The company is in process to acquire running unit namely 'Divya Bhoj Sansthan' engaged in processing of food products like tomato soup, concentrates, sauce, puree, ketchup, fruit jam and jelly, pickles etc. ANONDITA HEALTHCARE: CARE Assigns B+ Rating to INR9.0cr LT Loan --------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Anondita Healthcare Private Limited (AHPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.00 CARE B+; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of AHPL is primarily constrained by project stabilization risk associated with its debt-funded green field project, and its presence in highly competitive industry. The rating, however, draws comfort from experienced promoters. Going forward; ability of the company to achieve the envisaged revenue and profitability while registering improvement in the capital structure, shall be the other key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Post-stabilization risk associated with its debt-funded green field project: The company is setting up a new facility for manufacturing of surgical gloves in Guwahati, Assam with total project cost of INR12.05 crore which was funded through term loan of INR 9.00 crore and balance through promoter's contribution. The company has commenced its operations in April, 2018. The company has a very short track record of operations as compared with other established players. Furthermore, post project implementation risk in the form of stabilization of the newly commissioned facilities to achieve the envisaged scale of business in the light of competitive nature of industry remains crucial for the company. The capital structure of the company is expected to remain leveraged due to debt funded capex undertaken. Presence in competitive nature of medical disposable products industry and working capital: The fortune of company is linked with demand of medical disposable products from healthcare institutes and hospitals. AHPL is operating in competitive and fragmented nature of industry due to presence of multiple players offering similar range of products. Additionally, the company has limited bargaining power with big players operating in domestic market. AHP plans to market its products to hospitals and through distributors. Being a new player and its presence in the highly competitive market, the company has to offer extended credit period to its customers which would lead to high collection period. Furthermore, being a manufacturer the company has to maintain minimum levels of finished goods inventory to meet the immediate demand of its customers and raw material levels for smooth running of its production processes. The operations of the company are such that it is required to maintain inventory holdings and high collection period making it working capital intensive. Key Rating Strengths Experienced promoters and track record of promoter group companies: The company is managed by Mr. Anupam Ghosh. He has around more than a decade of experience in pharmaceuticals and medical disposables industry through his sister concern i.e. Anondita Healthcare (proprietorship firm). Also, they are supported by a team of professionals for managing the day to day operations. AHP business risk profile would remain benefitted from established marketing network of Anondita Healthcare. AHP's will have an added advantage of the existing distribution network and warehouses of its group associates. Established marketing network is of paramount importance for reaching out to hospitals as well as retail customers. This establishes the visibility of the company and its products in the market and provides deeper penetration also. Industry Prospects: Growth in demand for medical equipment and medical disposables is directly linked to growth of the overall healthcare industry. Thereby, for players like AHPL, revenue growth is dependent on the addition of hospitals in the country and increased awareness of healthcare services. With growing awareness about health issues within India and an increasing demand for quality care at affordable prices, the demand for medical equipment are likely to grow. Growth in spending on healthcare and increase in number of hospitals, is likely to enhance the demand for medical equipment and disposables. Delhi Based Anondita Healthcare Private Limited was incorporated in August, 2008 and commenced its commercial operations in April 2018. The company is currently being managed by Mr. Anupam Ghosh. AHPL is engaged in manufacturing of surgical gloves. The manufacturing unit is located in Guwahati, Assam with installed capacity of 2.50 crore pieces per annum of powder free latex gloves. B D CORPORATES: CRISIL Reaffirms B+ Rating on INR27.7MM Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of B D Corporates Private Limited (BDCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1.55 CRISIL A4 (Reaffirmed) Cash Credit 27.70 CRISIL B+/Stable (Reaffirmed) Proposed Fund- Based Bank Limits 3.75 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect the company's large working capital requirement and modest financial risk profile on account of muted debt protection metrics coupled with high gearing. These weaknesses are partially offset by promoters' experience in the agriculture industry and strong relationship with customers and suppliers. Key Rating Drivers & Detailed Description Weakness * Working capital-intensive operations: Gross current assets were 153 days for FY17 on account of large inventory due to seasonal products, and limited credit from suppliers. Working capital requirement will remain large over the medium term. * Modest financial risk profile: Debt protection metrics were muted, with interest coverage and net cash accrual to total debt ratios of 1.38 times and 3%, respectively, for fiscal 2017. Gearing was high at 2.19 times and networth modest at INR13.03 crore, as on March 31, 2017. Though gearing will improve over the medium term, metrics will remain subdued. Strengths * Promoters' experience in the agriculture business: Industry presence of over two decades has enabled the promoters to develop healthy relationship with customers and suppliers. Outlook: Stable CRISIL believes BDCPL will continue to benefit over the medium term from strong relationship with customer and suppliers. The outlook may be revised to 'Positive' if increase in networth due to significant equity infusion or sustained growth in cash accrual leads to a better financial risk profile. The outlook may be revised to 'Negative' if sharp decline in profitability or large, debt-funded capital expenditure further weakens financial risk profile. Incorporated in 2003 in Kolkata and promoted by Mr Sankar Agarwala and his family, BDCPL processes flour and rice. The flour mill is in Hooghly, West Bengal, where it makes atta, maida, suji, and wheat bran. The rice mill is situated in Howrah, West Bengal. BHADRESH TRADING: Ind-Ra Maintains 'D' Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Bhadresh Trading Corporation Ltd.'s (BTCL) 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 actions are: -- INR8,500 bil. Fund-based limits (long- and short-term) maintained in Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; -- INR686.80 mil. Term loan (long-term) maintained in Non- Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; and -- INR1,350 bil. Non-fund-based limits (short-term) maintained in Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 3, 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 1964, BTCL was reconstituted as a limited company in 2008 and is promoted by Mr. Bhadresh Mehta. It exports and trades raw cotton and cotton yarn, purchasing raw cotton from ginners, primarily across Gujarat and Maharashtra, and exporting it primarily to China, South East Asia, Pakistan and Bangladesh. BTCL sells under own brand Bhadresh to China and Bangladesh. The company has offices in China, Singapore, Turkey and the US. BINANI CEMENT: SC Rejects Dalmia's Plea Challenging NCLAT's Order ----------------------------------------------------------------- LiveMint reports that the Supreme Court on May 10 dismissed an appeal by Dalmia Bharat Ltd-controlled Rajputana Properties Pvt. Ltd (RPPL) challenging an order of the National Company Law Appellate Tribunal (NCLAT) that refused to stay UltraTech Cement's revised bid of Rs7,900 crore from being considered in the ongoing resolution process for Binani Cement. This comes as a setback for Dalmia Bharat as the apex court refused to interfere in the resolution process. The court however, asked the NCLAT to hear the case on a day-to-day basis, without adjournments, LiveMint says. According to the report, Dalmia Bharat has offered to pay INR6,932.46 crore for Binani Cement whereas UltraTech has raised its bid to INR7,960 crore, and claimed that in the interest of all stakeholders, its bid should be considered by the lenders. On May 4, the appellate tribunal refused to grant an interim stay on a May 2 order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had asked the insolvency resolution professional (IRP) and the committee of creditors (CoC) to consider the revised bid of UltraTech Cement, the report says. On May 2, the Kolkata branch of the NCLT passed an order asking the IRP to accept UltraTech's revised bid of INR7,900 crore within three days with a provision for Dalmia Bharat to match UltraTech's offer, LiveMint relates. This put UltraTech back in the race for acquiring Binani Cement. Thereafter, Dalmia Bharat moved the appellate court to obtain a stay on the NCLT order. NCLAT declined immediate stay, the report notes. According to a Mint story on February 28, the Dalmia consortium had agreed to invest around INR6,700 crore in the stressed cement firm over a period of time. UltraTech Cement, which was initially outbid by Dalmia Bharat, later struck a deal with Binani Industries Ltd to acquire 98.43% in the cement maker for INR7,266 crore. 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 around INR6,500 crore to its lenders, according to LiveMint. BIVAB DEVELOPERS: CRISIL Migrates B Rating to Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Bivab Developers Private Limited (BDPL) for obtaining information through letters and emails dated March 28, 2018, April 11, 2018 and April 16, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 2.13 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 2.87 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 Bivab Developers Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bivab Developers Private Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Bivab Developers Private Limited to CRISIL B/Stable Issuer not cooperating'. BDPL was set up in 1997 by Mr Binay Krishna Das in Odisha. The company develops and constructs residential buildings. CHUNILAL MOTIRAM: Ind-Ra Maintains 'B-' Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained The Chunilal Motiram Ginning Factory'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 rating will continue to appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR60 mil. Fund-based working capital limits maintained in non-cooperating category with IND B- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 27, 2013. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE The Chunilal Motiram Ginning Factory is a proprietorship concern engaged in cotton ginning and pressing in Jalgaon (Maharashtra). DUTCH TECH: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Dutch Tech Tools Private Limited's (DTT) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR72.5 mil. Fund-based working capital limit affirmed with IND A4+ rating; and -- INR27.0 mil. Non-fund-based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation is despite deterioration in the overall credit profile, as the credit metrics continued to stay at a comfortable level. The ratings continue to reflect DTT's small scale of operations owing to limited order size. In FY17, DTT's revenue fell to INR158 million (FY16: INR189 million) and EBITDA margin declined to 13.7% (16.9%). The decline in the revenue and the margin was due to fluctuations in the prices of the raw materials. According to provisional financials for FY18, the revenue increased 13.0% yoy to INR178 million and the EBITDA margin rose to 14.0% on account of increased order execution. The ratings continue to be supported by DTT's comfortable, albeit deteriorated, credit metrics in FY17 and the directors' over 10 years of experience in manufacturing solid carbide metal cutting tools. During the period, its gross interest coverage (operating EBITDA/gross interest expense) was 6.3x (FY16: 9.2x) and net financial leverage (total adjusted net debt/operating EBITDAR) was 2.6x (2.3x). The deterioration in the credit metrics was due to an increase in the debt, which led to a rise in the interest expenses. Ind-Ra expects the metrics to have improved in FY18 in view of a likely increase in absolute operating EBITDA and a decline in total adjusted net debt. The ratings are also supported by DTT's comfortable liquidity, indicated by an average 86.38% utilization of the fund-based working capital limits for the 12 months ended April 2018. RATING SENSITIVITIES Negative: Any further deterioration in the overall credit profile could be negative for the ratings. Positive: Any rise in the scale of operations and any improvement in the overall credit metrics would be positive for the ratings. COMPANY PROFILE Incorporated in 2007, DTT manufactures solid carbide rotary metal cutting tools, majorly used in industries such as automotive and aeronautical industries, at its site in the Falta special economic zone (West Bengal). The facility has an annual installed capacity of 1.35 million pieces. ELYSIUM PHARMACEUTICALS: Ind-Ra Affirms BB Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Elysium Pharmaceuticals Limited's (EPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR150 mil. Fund-based limits affirmed with IND BB/Stable rating; -- INR267.36 mil. (reduced from INR327.31 mil.) Term loan due on June 2023 affirmed with IND BB/Stable rating; and -- INR65 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The ratings reflect EPL's continued modest scale of operations and credit metrics due to the company's presence in a highly competitive pharmaceutical industry. In FY17, EPL's revenue was INR468 million (FY16: INR555 million), net financial leverage (total adjusted net debt/operating EBITDAR) was 4.43x (2.85x) and interest coverage (operating EBITDA/gross interest expense) was 4.51x (3.76x). The decline in the revenue was due to a slowdown in the execution of work orders as EPL faced a shortage in the supply of materials, and the deterioration in the net leverage was due to an increase in the long-term debt to fund the capex for the construction of a US Food and Drug Administration- approved fully export-oriented facility in Dabhasa, Vadodara. Meanwhile, the improvement in the interest coverage was due to a decrease in the interest expenses due to lower utilization of short-term facilities. EBITDA margin increased to 21.00% in FY17 (FY16: 20.06%), driven by a reduction in material cost. The ratings also reflect EPL's tight liquidity, indicated by a 96.11% utilization of its fund-based facilities for the 12 months ended April 2018. The ratings factor in the timely completion and operationalization of the export-oriented facility in Dabhasa, Vadodara. Ind-Ra expects revenue growth in view of the operationalization of the new plant. The ratings, however, continue to be supported by the promoter's significant experience of over two decades in generic drug manufacturing and in exporting to the US market. RATING SENSITIVITIES Negative: Any further decline in the revenue or any stretch in the liquidity leading to any deterioration in the credit metrics will be negative for the ratings. Positive: Any rise in the revenue and any improvement in the liquidity while maintaining the profitability at the current level leading to any improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in 1995 by Mr. Yashwant Patel, EPL is a formulation company based in Dabhasa, 19km from Vadodara, Gujarat. The company commenced commercial operations in 1997, manufacturing sterile formulations such as liquid and dry parenteral and non- sterile formulations such as tablets, capsules, liquid orals, ointment and dry syrups under third-party and contract manufacturing agreements for established pharmaceutical firms. It produces own drugs under the ethical segment. ETHOS POWER: Ind-Ra Raises Long-Term Issuer Rating to BB --------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Ethos Power Private Limited's (EPPL) Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR90 mil. Fund-based working capital limit Long-term rating upgraded while Short-term rating affirmed with IND BB/Stable/IND A4+ rating; and -- INR240 mil. Non-fund-based limit affirmed with IND A4+ rating. KEY RATING DRIVERS The upgrade reflects the significant improvement in EPPL's revenues over FY16-FY18, at a CAGR of 49%, driven by increased order inflow and timely project execution. Revenue stood at INR428.25 million in 11MFY18, according to the provisional financials, which is likely to have improved to INR530 million in FY18 (FY17: INR503.48 million; FY16: INR237.85 million). Moreover, the operating margins improved to 8.61% in 11MFY18 (FY17: 8.26%; FY16: 5.10%) and are likely to have remained around 8.6% during FY18, due to the execution of higher margins projects. Consequently, EPPL's credit metrics are likely to have improved in FY18 with the net interest coverage (operating EBITDAR/net interest expense) and net leverage (adjusted net debt/operating EBITDAR) of around 3x (FY17: 2.7x; FY16; 1.8x) and 2.5x (2.6x; 3.1x), respectively. However, EPPL's financial and credit profiles remain modest due its tender-based business operations, making it highly susceptible to government regulations and interventions. The ratings are supported by the company's moderate liquidity, indicated by average working capital utilization of around 73% during the 12 months ended March 2018. The ratings are also supported by EPPL's directors' over three decades of experience in various state electricity boards. RATING SENSITIVITIES Negative: Any decline in the operating margin leading to deterioration in the credit metrics, on a sustained basis, will be negative for the ratings. Positive: Any significant rise in revenue and operating margin leading to any improvement in the credit metrics, on a sustained basis, will be positive for the ratings. COMPANY PROFILE Formed in 2012, EPPL is a Gurugram (Haryana) based project management company. It undertakes turnkey projects for the development of transmission and distribution infrastructure for state electricity boards. Moreover, it provides energy-efficient products and solutions for reducing transmission and distribution losses. FLEXITUFF INTERNATIONAL: ICRA Cuts Rating on INR293cr Loan to B+ ---------------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Flexituff International Limited (FIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loan 37.00 Downgraded to [ICRA]B+ (Negative) from [ICRA]BBB- (Negative) Fund-based- 289.00 Downgraded to [ICRA]B+ Cash credit (Negative) from [ICRA]BBB- (Negative) Non-fund based 293.00 Downgraded to [ICRA]A4 from [ICRA]A3 Material Event FIL failed to meet its repayment obligations towards the US$24 million Foreign Currency Convertible Bonds (FCCB) which were due on April 26, 2018. Impact of the Material Event The ratings have been downgraded to [ICRA]B+ (Negative)/[ICRA]A4 from [ICRA]BBB- (Negative)/[ICRA]A3 owing to the failure by the company in arranging for funds in a timely manner to meet the repayments of its FCCBs on the due date. Although FIL has obtained extension on the maturity of the FCCBs till June 30, 2018 from the FCCB investor, the approval for extension is still pending with the Reserve Bank of India. FIL is currently in discussions with several Private Equity (PE) investors for raising the required funds to meet the FCCB repayments. Rationale The ratings are further constrained by the high working capital intensity in the operations arising out of relatively longer credit period offered to customers and inventory requirements. The ratings also take into account the slower-than-expected ramp- up of operations in the geo-textiles business due to delays in receipt of orders that has resulted in loss-making operations for this business segment. Further, the company's operations remain exposed to raw material fluctuation risk, although the same is mitigated due to short tenure of supply orders and revision of price levels on a rolling basis. The ratings also factor in the competitive pressures in other businesses of the company as well as the forex risk associated with the FIBC (Flexible Intermediate Bulk Container) business. ICRA notes that the company's ability to secure sizeable contracts and accordingly scale up the volumes in the geo- textiles business thereby, improving the profitability and return indicators from the current levels, remains important from a credit perspective. The ratings are further constrained by the high gearing levels of the company on account of the sizeable debt-funded capex undertaken towards the greenfield project at Kashipur apart from high reliance on working capital borrowings. The ratings, however, favourably take into account the company's established market position in the FIBC industry, both domestically and in overseas markets. The FIBC operations have been operating at close to full capacity utilisation levels at both the facilities of FIL with healthy operating margins. The ratings further factor in the favourable demand outlook for the FIBC segment as well as the geo-textiles segment, the latter primarily driven by the domestic market with applications in the infrastructure segment. The company has seen healthy increase in the order book for geo-textiles supported by its first-mover advantage in the market thereby enabling it to bag major government projects across several states. The ratings also take into account the scale-up of operations with the commissioning of a new facility at Kashipur in FY2016 that is currently operating at optimum utilisation levels. Outlook: Negative ICRA believes the delays in repayment of the FCCBs could have a bearing on the company's ability to raise additional funds even for its business operations. The outlook may be revised to 'Stable' if the company is able to arrange for the requisite private equity funds and thereby retire the FCCBs soon. The ratings may be downgraded if the company faces any liquidity pressures or funding issues in its business operations or faces significant delay in raising the required funds to meet the FCCB liability. Key rating drivers Credit strengths Established market position & long track record in FIBC industry: The company has a leading position in the FIBC manufacturing segment in the domestic market with a market share of ~15-20%. Although the domestic demand is still in its growth stage and is mainly from industries like fertilizers, cement, petrochemicals and raw salt, the company's sales are mainly focused on exports to Europe, UK and USA. FIL is particularly strongly placed to meet export demand in FIBC applications for food & pharma user industries where quality parameters are stringent. Favourable business outlook for geo-textiles segment: Geo- textiles have seen a rapid increase in demand in the Indian market owing to their varied applications in road construction, flood protection, protection from land sliding and soil erosion. Many state governments have also now opted for geo-textiles in order to tackle the situation of floods in their regions. FIL has been an early mover in this segment in the domestic market and is expected to benefit from the increase in demand. Scale of operations expected to improve with sales from capacity augmentation in geo-textiles: The company is involved in the end- to-end EPC1 solutions which comprise of procuring raw materials, manufacturing and installation of the geo-textiles at the project sites and also has been able to qualify for execution of such orders in few states. The scale of operations is being ramped up and the market demand is expected to remain strong with few players in the business. Credit challenges High gearing level with large working capital borrowings: The company's long-term loans increased on account of the debt-funded greenfield project undertaken at Kashipur. The company's working capital requirements have also been increasing which have been largely met through external financing. As a result, the company's gearing remains high at 2.0 times as on March 31, 2017. High working capital intensity: The credit period offered to customers (FIBC - exports) varies between 1-6 month period (about 50-60% of FIBC exports are with 180 days of credit period). The company mainly deals with civil construction contractors, who purchase geo-textiles for various government projects and provides credit period of 3-4 months to these contractors for geo-textile sales. The company, however, receives a credit period of 90 days on the purchases backed by LCs. Overall, the working capital intensity remains high in the business. Exposed to input price fluctuation as well as forex fluctuation risks: Polypropylene (PP), which is the key raw material is purchased on spot basis and thus, FIL is exposed to any inventory loss on account of the volatility in PP prices. The supply risks are mitigated due to the proximity of the company's facility to the refineries and also due to the continuing relationship with the vendors and built-in price variation clause protects the company against price fluctuations during transit period. The company earns most of its revenues in USD terms owing to the export-oriented nature of business and is thus, exposed to the movement in the forex rates. FIL has been hedging about 25% of its net foreign exposure through forward contracts, apart from the natural hedge of approximately about 50% of its exposure, so as to reduce its overall forex exposure. GANGA DIAGNOSTIC: ICRA Keeps B+ Rating in Not Cooperating --------------------------------------------------------- ICRA said the rating for the INR13.99 crore bank facility of Ganga Diagnostic & Medical Research Centre Pvt. Ltd. (GDMRCPL) continue to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 13.99 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under '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 2010, Ganga Diagnostic and Medical Research Centre Private Limited (GDMRCPL) provide radiology and pathology diagnostic services in Raipur. The diagnostic service centre started its commercial operations in 2012. Mr. Subhash Agarwal and Mr. Ashok Agarwal, Raipur-based promoters of the company, are also part of the Vandana Group of Companies, which is involved in the steel-manufacturing business. HARAN CHANDRA: ICRA Removes D Rating From Not Cooperating Cat. -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]D assigned to the INR11.80-crore (enhanced from INR5.09-crore earlier) term- loans, INR5.39-crore fund-based working-capital facilities (enhanced from 4.71-crore earlier), INR0.25-crore (enhanced from INR0.20-crore earlier) bank-guarantee facility of Haran Chandra Cold Storage Pvt. Ltd. ICRA has also assigned a long-term and short-term rating of [ICRA]D to an untied limit of INR0.06-crore of HCCSPL. The rating has been removed from 'Issuer Not Co- operating category'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 17.19 [ICRA]D Reaffirmed and removed from 'Issuer Not Cooperating' category Non-fund based limits 0.25 [ICRA]D Reaffirmed and removed from 'Issuer Not Cooperating' category Unallocated limits 0.06 [ICRA]D Reaffirmed and removed from 'Issuer Not Cooperating' category Rationale The reaffirmation of the rating primarily takes into account the company's consistent delay in timely servicing of debt- obligations due to stretched liquidity position. The rating also remains constrained by HCCSPL's small scale of current operations, its weak financial risk profile as reflected by nominal profits, high gearing and depressed coverage indicators. The rating is also impacted by the high working-capital intensive nature of operations due to the practice of extending up-front advances to the farmers at the time of loading of potatoes, which exerts pressure on the liquidity position. The ratings are further constrained by the regulated nature of the industry, making it difficult to pass on the increase in operating costs, which exerts pressure on the profitability. HCCSPL is exposed to the agro-climatic risks as its business performance entirely depends upon a single agro commodity-potato. ICRA notes that the company remains exposed to the counterparty risk due to loans extended to farmers, given the chances of delinquencies, if potato prices fall to a low level. The rating, however, derives support from the established track record of the company in the cold-storage business and the promoters' extensive experience in the industry. Besides, HCCSPL enjoys location-specific advantage as its cold storage unit is situated in West Bengal, a state well known for large-scale potato production. Going forward, the firm's ability to service its debt-obligations in a timely manner and improve profitability, while managing its liquidity profile, would be the key rating sensitivities. Key rating drivers Credit strengths Long track record of promoters in the management of cold storages: The promoters are involved in the business of cold storage through other group entities since long, and the experience gained supports the operations of HCCSPL. Location-specific advantage due to presence in West Bengal: HCCSPL enjoys location-specific advantage due to its presence in West Bengal, a state well known for large-scale potato production. Credit challenges Delays in servicing of debt obligations: The company continues to delay in timely servicing of debt-obligations due to stretched liquidity position. Regulated nature of the industry exerts pressure on profitability: The West Bengal State Marketing Board determines the maximum rental to be charged by the cold storage and revises it periodically. As income from rental charged is the major source of the company's revenue and while expenses incurred to run the cold storage like maintenance, human resource, and finance cost etc. are being variable in nature, the same exert pressure on profitability. Recovery of rental and advance given to farmers, contingent upon movement in potato price: As per the industry practice, HCCSPL provides advances against storage of potato to farmers/ traders, which it recovers along with interest and rent at the time of inventory release. This practice exposes the company to counterparty risk due to loans extended to the farmers, given the chances of default if potato prices fall significantly. Weak financial profile indicated by nominal profits, high gearing, and depressed coverage indicators: The regulated nature of the industry and the practice of providing advances to farmers keep the company's profitability under check and requirement of working-capital facilities high. The company has also availed term loan facility to increase its storage capacity. The financial risk profile of the company has remained weak as reflected by nominal profits, high gearing and depressed level of coverage indicators. High working-capital intensity of business exerts pressure on liquidity position and restricts financial flexibility: Industry practice of providing advances to farmers and its recovery along with rental charges at the time of off-loading exerts pressure on its liquidity. ICRA notes that the company has sizeable long-term debt-service obligations and high working-capital intensity for business, which are likely to keep its cash flows stretched over the mid-term at-least. Incorporated in 2014, Haran Chandra Cold Storage Pvt Ltd (HCCSPL) provides cold storage facilities to farmers and traders. The warehouse is located in the Cooch Behar district of West Bengal with an installed capacity of 317,275 quintals and is mainly used for storage of potatoes by farmers/ traders in that area. Apart from HCCSPL, the promoters are involved in the business of cold storage through other group companies and have an existing network which is expected to support the revenue generation of HCCSPL. HARIOM PROJECTS: Ind-Ra Migrates 'BB' Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Hariom Projects Private Limited's (HPPL) 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: -- INR90 mil. Fund-based limit migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR110 mil. Non-fund-based limit migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 10, 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 April 1989 as Hariom Builders (a partnership firm), HPPL was reconstituted as a private limited company in 2003 under its current name. HPPL is promoted by Ahmedabad-based Mr. Haresh Bhagchand Sangtani and his family. The firm enjoys the status of a super specialist in building construction. It undertakes construction work as a military engineering services- approved civil contractor, with a specialization in building construction. HARMAN EXPORTS: CARE Assigns 'B' Rating to INR15cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Harman Exports Private Limited (HEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 15.00 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of HEPL is constrained by the significant decline in scale of operations in the FY15-17 (refers to the period April 1 to March 31) period. The rating is further constrained by the susceptibility of the profitability margins to raw material price volatility & vagaries of nature, regulatory policy risk and competitive nature of the industry. The ratings, however, derive strength from the experienced promoters and the comfortable overall solvency position. Going forward, the ability of the company to profitably scale-up its operations, post recommencement of the manufacturing facilities and maintain its solvency position, with efficient management of working capital limits will remain the key rating sensitivities. Detailed description of the key rating drivers Key rating weaknesses Significant decline in the scale of operations: HEPL, in order to avoid the risks associated with the increasing prices of paddy and its limited bargaining power with the customers, ceased its operations of complete processing of paddy in FY16, and instead only undertook small scale milling of paddy for the nearby units and sale of rice bran etc. in FY17, the company derived its complete operating income by selling rice by products and milling of rice for nearby units. The company's scale of operations, therefore, declined significantly from INR31.69 Cr. in FY15 to INR5.81 Cr. in FY16 and subsequently to INR2.57 Cr. in FY17. However, the company plans to recommence manufacturing operations in FY19. Susceptibility of the profitability margins to the fluctuation in raw material prices and business dependent on the vagaries of nature: Agro-based industry is characterized by its seasonality and dependence on raw materials whose availability is affected directly by the vagaries of nature. Since there is a long time lag between raw material (paddy) procurement and liquidation of inventory, the profitability margins of the company are also exposed to the risk of adverse movement in prices of paddy. Fragmented nature of the industry with high level of government regulations: The commodity nature of the product makes the industry highly fragmented, with numerous players operating in the unorganized sector. The raw material prices are regulated by the government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Key rating strengths Experienced promoter: HEPL was incorporated in 2009 by Mr. Bhupinder Singh who holds an industry experience of over two decades. Group concerns of the company include Harman Rice Private Limited (rated, 'CARE B+; Stable/CARE A4') which is also engaged in the processing of paddy since 2006. Comfortable overall solvency position: The outstanding debt of the company as on March 31, 2017 comprised of unsecured loans from the promoters and related parties only. The overall solvency position of the company, therefore, remained comfortable. Incorporated in 2009, HEPL was earlier engaged in the processing of paddy at its manufacturing facility in Bathinda, Punjab. These operations were ceased in FY16 and instead, HEPL undertook small scale milling of rice for nearby units and selling of by-products like rice bran, etc. HARMAN RICE: CARE Assigns B+/A4 Rating to INR30cr Bank Loan ----------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Harman Rice Private Limited (HRPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/short- 30.00 CARE B+; Stable/CARE A4 term Bank Assigned Facilities Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of HRPL are constrained by its small & declining scale, low profitability margins, weak overall solvency position and working capital intensive nature of operations. The ratings are further constrained by the susceptibility of the profitability margins to raw material price volatility & vagaries of nature, regulatory policy risk and competitive nature of the industry. The ratings, however, derive strength from the experienced promoters, long track record of operations and proximity of the manufacturing facilities to raw material sources. Going forward, the ability of the company to profitably scale-up its operations with improvement in the overall solvency position and efficient management of the working capital requirements will remain the key rating sensitivities. Detailed description of the key rating drivers Key rating weaknesses Weak financial risk profile: The scale of operations of the company remained small and declining in the FY15-FY17 (refers to the period April 1 to March 31) period owing to the reduced prices of rice in FY16 and deliberate holding of finished stock during the end of FY17. Further, higher paddy prices in FY16 led to a decline in the PBILDT margins during the year to 2.45% in FY16, from 3.33% in FY15. The PBILDT margins, however, improved in FY17 owing to the start of better margin giving export sales during the year. Though the company had no external debt, the capital structure of the company remained leveraged as on March 31, 2017 and also deteriorated from the previous year's levels on account of additional working capital limits availed during the year. The debt coverage indicators also remained weak. Working capital intensive nature of operations: The operating cycle of the company remained elongated at ~243 days as on March 31, 2017. The same deteriorated from previous year's levels on account of the stretched inventory holding period. The cash credit limits remained fully utilized on an average in the last twelve month period ended February-2018 while the average utilization of the other fund based facilities viz. inventory funding limits remained ~75% in the twelve month period ended February-2018. Susceptibility of the profitability margins to fluctuation in raw material prices and business dependent on the vagaries of nature: The agro-based industry is characterized by its seasonality and dependence on raw materials whose availability is affected directly by the vagaries of nature. Since there is a long time lag between raw material (paddy) procurement and liquidation of inventory, the profitability margins of the company are also exposed to the risk of adverse movement in prices of paddy. Fragmented nature of the industry with high level of government regulations: The commodity nature of the product makes the industry highly fragmented, with numerous players operating in the unorganized sector. The raw material prices are regulated by the government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Key rating strengths Experienced promoters: HRPL was incorporated in 2006 by Mr. Inderpreet Singh. He holds an experience of more than two decades in the industry. The day to day operations of the company are handles by him and his brother, Mr. Bhupinder Singh, who also holds an industry experience of over two decades. The promoters are also directors in Harman Exports Private Limited (rated, 'CARE B; Stable') which is also engaged in the processing of paddy since 2009. Long track record of operations: The company has been engaged in the processing of rice for over a decade now which has led to established relationship with the customers as well as suppliers. Proximity to raw material sources: HRPL's manufacturing unit is located in Bathinda, Punjab which is an established rice cultivation belt giving the company an advantage in terms of easy and ample availability of raw materials. Incorporated in 2006, HRPL is engaged in the processing of paddy at its manufacturing facility in Bathinda, Punjab. The company is operating at an installed capacity of 6 tonnes per day, as on December 31, 2017. HRPL mainly produces unbranded basmati rice which is sold to nearby traders and rice shellers located primarily in Punjab and Haryana. The company also started exporting its products to countries in the middle-east like Dubai etc., in FY17. The export income constituted ~50% of the total income in FY17. Close to 4% of the total income in FY17 was also derived from sales of by products like husk etc. KAUSHALYA SPINNERS: CRISIL Withdraws B+ Rating on INR5.28MM Loan ---------------------------------------------------------------- CRISIL has been consistently following up with Kaushalya Spinners (KS) for obtaining information through letters and emails dated April 13, 2018 and April 18, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.00 CRISIL B+/Stable (Issuer Not Cooperating; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Long Term Loan 5.28 CRISIL B+/Stable (Issuer Not Cooperating; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Proposed Long Term .72 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) 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 rating 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 KS. 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 KS is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has migrated the rating on the bank facilities of KS to 'CRISIL B+/Stable' Issuer not cooperating' from 'CRISIL B+/Stable'. CRISIL has withdrawn its rating on the bank facilities of KS 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. Established in 1995 by the Jain family as a partnership firm, KS currently manufactures mink blanket. It manufactured woollen yarn till fiscal 2016. The firm has a manufacturing facility at Panipat, Haryana, with total production capacity of 10,000 kilogram per day for mink blankets. KEEN AND CORE: CRISIL Moves B- Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Keen and Core Developers (KCD) for obtaining information through letters and emails dated March 28, 2018, April 10, 2018 and April 16, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) 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 Keen and Core Developers, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Keen and Core Developers 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 ratings on bank facilities of Keen and Core Developers 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. Set up as a proprietorship firm in June 2008 by Mr. Satyabeer Singh, KCD undertakes civil, building, and road construction projects in Uttar Pradesh and Madhya Pradesh. ISHAAN METALS: ICRA Reaffirms B+ Rating on INR10cr Cash Loan ------------------------------------------------------------ ICRA has reaffirmed the long-term rating at [ICRA]B+ for the INR10.00-crore fund-based facilities and INR2.50-crore unallocated facilities of Ishaan Metals Private Limited. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Cash Credit (CC)/ Overdraft (OD) 10.00 [ICRA]B+ (Stable) Reaffirmed Unallocated 2.50 [ICRA]B+ (Stable) Reaffirmed Rationale: The ratings reaffirmation takes into account the decline in the company's operating income (OI) in the last three years (year- over-year decline of 25% in FY2017 and 6% in FY2018) due to downturn in the commodity market as well implementation of GST and demonetisation-related challenges in FY2018 and FY2017, respectively. ICRA continues to factor in IMPL's vulnerability to volatility in agro-commodity prices due to its high inventory holding in the business. The operating profitability margins of IMPL keep fluctuating on account of the trading nature of operations and highly competitive business environment. The ratings also take note of the company's exposure to high customer-concentration risk with a single Group concern - Padmashree Inc. - accounting more than 50% of the total sales in FY2017 and FY2018. The rating also factors in the elevated gearing levels on account of increased debt levels due to debt funding of working capital requirements and the company's modest net worth. Nevertheless, the company's liquidity profile remains healthy, which is evident from its relatively large and growing equity portfolio and unused working capital limits. Further, the company has significant mark-to-market profit on the equity portfolio, which cushions it from the volatility in stock prices. The ratings continue to derive comfort from the extensive experience of the promoters in the industry which has facilitated the company to secure and sell agro commodities at suitable prices in the market. Outlook: Stable ICRA believes that IMPL will continue to benefit from its strong parentage and the extensive experience of its promoters in the agro-commodity business. However, lower-than-expected cash accruals, or significant inventory losses impacting the profitability and any infusion of equity by the promoters will be key sensitivities. Key rating drivers: Credit strengths Experienced promoters with long track record in agro-trading industry: The promoters and their families have been involved in the agro-trading industry for more than two decades. The promoters also have other Group companies in similar business segments. Strong trading acumen and established relations with brokers and dealers in the market have supported the company's growth. Healthy liquidity position: In the absence of any major planned capex, small annual debt repayment via internal accruals, low utilisation of working capital borrowings and healthy cash reserves, the company's liquidity position remains quite strong. Also, IMPL has significant investment of INR14.05 crore as on March 31, 2018 in equity shares, which can be easily liquidated. Credit challenges Moderate scale of operations: The company's topline remains moderate and its revenues have decreased over the last three years. The company is a marginal player in comparison to other large traders, which helps in better bargaining power with customers and suppliers. The larger diversified players have more diverse product offerings than IMPL which only trades commodities which can be hedged like coriander, sugar, wheat etc. Significant decline in turnover in past few years: The company's turnover has declined in the last three years from INR134.19 crore in FY2015 to INR58.26 crore in FY2017. This has been due to downturn in the commodity cycle which was further aggravated by demonetisation and Goods and Services Tax (GST) implementation by the Government in FY2017 and FY2018, respectively. High client-concentration risk with most sales in FY2017 and H1 FY2018 derived from single customer: Till FY2016, the company had a well-diversified customer base with its top-five customers accounting for only ~10% of the total sales. However, starting FY2017, the company has received major orders from Padmashree Inc. (a Group company which accounted for 70% and 50% of the total revenue in FY2017 and FY2018, respectively). High leverage with thin coverage indicators: The company's capital structure is highly leveraged with gearing of 2.03 times as on March 31, 2018 due to debt funding of working capital and modest net-worth base. Also, the coverage indicators have remained weak due to increase in interest expenses in FY2017 and FY2018 with interest cover of 1.53 times and Net Cash Accruals/Total Debt of 8% in FY2018. Intensely competitive nature of commodity-trading industry: The agro-trading industry is highly fragmented with presence of numerous organised and unorganised players given the limited entry barriers with low capital and technical requirements of the business. Thus, intense competition in the industry coupled with the low value-additive nature of operations exerts pressure on profit margins of the company. IMPL was established in 2003 as a private limited company with Mr. Lalit Sharma, Mr. Anshul Gupta and Mr. Vikas Singhal as promoters. The company is entirely held by the promoters and their family members. It is involved in trading agricultural commodities. The company is a member of the National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX). It is also involved in client and proprietary trading through these exchanges. In FY2017, the company reported a net profit of INR1.51 crore on an OI of INR62.01 crore compared with a net profit of INR1.36 crore on an OI of INR82.29 crore in the previous year. Also, the company reported a net profit of INR2.44 crore on an OI of INR58.26 crore on a provisional basis in FY2018. LEADER VALVES: Ind-Ra Assigns 'BB+' Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Leader Valves Limited (LVL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR120.0 mil. Fund-based working capital facility assigned with IND BB+/Stable/IND A4+ rating; and -- INR150.0 mil. Non-fund-based working capital facility assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect LVL's small scale of operations owing to the company's presence in an intensively competitive industrial valve industry. LVL's revenue increased at a CAGR of 3.00% to INR660 million during FY14-FY17. Ind-Ra expects the revenue, up 26.85% yoy in FY17, to register marginal revenue growth in FY18 on account of stiff competition. However, with a revival of investment in the global oil and gas sector, the revenue is likely to grow in FY19. The ratings also reflect LVL's weak operating margin. LVL's operating margin was between negative 0.24% and 3.82% over FY14- FY17. The weak operating margin was due to high fixed cost overheads, inability to pass raw material price fluctuations to customers and delayed realizations from government tenders. In FY17, the margin improved to 3.75% (FY16: negative 1.43%) due to the cost-cutting measures undertaken by LVL. Ind-Ra expects the margin to remain at the FY17 level, with minor deviations in the short to medium term. The ratings, however, are supported by LVL's strong distribution network in various geographies and comfortable liquidity. Its utilization of its fund-based limits was nil and it does not have any long-term loan. However, its net working capital cycle was elongated at 168 days in FY17 (FY16: 230 days), mainly because of high inventory levels, which stood at 128 days in FY17, due to the maintenance of diversified stock for widespread distribution. The ratings are also supported by LVL's comfortable credit metrics and ISO 9001:2015 certification. In FY17, the company's interest coverage (operating EBITDA/gross interest expense) was 3.30x and leverage (adjusted debt net of cash/operating EBITDAR) was 0.20x. Ind-Ra expects the credit metrics to remain at the FY17 levels in the medium term in view of no major debt-led capex and non-utilization of fund-based limits. RATING SENSITIVITIES Negative: A decline in the revenue and the EBITDA margin leading to the weakening of the credit metrics on a sustained basis will be negative for the ratings. Positive: A significant rise in the revenue and the EBITDA margin while maintaining the overall credit metrics on a sustained basis will be positive for the ratings. COMPANY PROFILE Incorporated in 1950, LVL is a valve manufacturing company and is a fully integrated valve manufacturing unit with ferrous and non- ferrous foundries, forging units, machining and testing facilities. MAHIDHARA PROJECTS: CRISIL Lowers Rating on INR5MM Loan to D ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facilities of Mahidhara Projects Private Limited (Mahidhara) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Secured Overdraft 5 CRISIL D (Downgraded from Facility 'CRISIL B+/Stable') The rating downgrade reflects delays in repayment of bank debt by Mahidhara. These delays have been due to weak operating performance. The ratings continue to reflect its susceptibility to implementation and offtake risks for its upcoming projects. These weaknesses are partially offset by the extensive experience of Mahidhara's promoters in the real estate segment. Key Rating Drivers & Detailed Description Weakness * Implementation and offtake risk: Mahidhara is exposed to risks related to the execution and saleability of its ongoing and upcoming projects due to demonetization effect, regulatory changes and intense competition from other real estate developers in Bangalore, Chennai and Hyderabad Strength * Extensive experience of promoters: Mahidhara has a track record in the residential real estate and open plot development, backed by its promoters' extensive experience in the construction business and healthy execution capabilities. Incorporated in 2007, Chennai-based Mahidhara develops residential real estate projects in Chennai and Bengaluru. Its operations are managed by the managing director, Mr. T Prashanth Reddy, and the executive director, Mr. Ramakrishna Prasad. MASSIMO ENTERPRISE: ICRA Withdraws B Rating on INR9.75cr Loan ------------------------------------------------------------- ICRA has withdrawn the long-term rating of [ICRA]B ISSUER NOT COOPERATING with a Stable outlook assigned to the INR9.75 crore bank facilities of Massimo Enterprise (ME). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 9.75 [ICRA]B (Stable) ISSUER NOT COOPERATING; Withdrawn Rationale The long-term rating assigned to Massimo Enterprise has been withdrawn at the request of the company, based on the no- objection certificate provided by its banker. Outlook: Not applicable Massimo Enterprise (ME) was established in June 2012 as a partnership firm. The firm is currently engaged in construction of its first real estate project, which is the commercial complex-'Massimo . . . A Business Bench' at Althan-Bhimrad Road in Surat (Gujarat). The project comprises a ground-plus-three storeys structure with a basement for car parking. The project is located on a 4,574 sq. m. plot and consists of 274 units for shops and a banquet hall with a total saleable area of 1,24,900 sq. ft. The project was launched in April 2012 and was completed in December 2016. ME is a part of the White Wings Group, which is actively engaged in real estate development in Surat. The partners of the firm have more than a decade of experience in the real estate business through other group entities. MODWAY SUITING: ICRA Assigns B+ Rating to INR7cr Term Loan ---------------------------------------------------------- ICRA has assigned the long-term rating on the Rs 10.00-crore fund-based limits of Modway Suiting Pvt. Ltd. (MSPL) at [ICRA]B+. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund- based- Term Loan 7.00 [ICRA]B+ (Stable); assigned Fund- based- Cash Credit 3.00 [ICRA]B+ (Stable); assigned Rationale ICRA's rating factors in the extensive experience of MSPL's promoters in the textile industry via its group companies- Swaraj Suiting, Sakina Textiles and Divine Suiting which is expected to help in absorbing the additional production volumes of MSPL. The existing relationships of promoters with customers as well as suppliers shall facilitate in establishing the operations of MSPL as the major capacity commences production in May 2018. The rating also factors in the locational advantage of the manufacturing unit which is situated at Bhilwara within close proximity to the manufacturers of raw material, thus leading to low transportation cost. The rating strengths are offset by the risk associated with the execution and stabilization of the project as per expected operating parameters and within estimated costs and timelines. Also, the debt funded capex will lead to an increase in the gearing and estimated debt coverage indicators will be critical to the profitability. Further, the rating also takes note of the vulnerability of company's profitability to fluctuations in the raw material prices and high competition in the textile industry. Going forward, the timely execution and stabilization of the project as per expected operating parameters and within estimated costs will remain the key rating monitorable. Outlook: Stable ICRA believes MSPL will benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if revenue and profitability are substantially higher that the estimated levels, thus strengthening the financial risk profile. The outlook may be revised to 'Negative' if there is a delay in the project execution leading to stretch in the liquidity or capacity utilization is lower than estimated levels. Key rating drivers Credit strengths Established track record of the promoters in the textile industry: The promoters have been involved in the manufacture of synthetic fabrics business since the past 15 years. They have been operating in the textile industry through other group companies -- Swaraj Suiting, Sakina Textiles and Divine Suiting. The extensive experience of the promoters in the textile industry for over two decades is expected to facilitate the company to establish strong relationships with customers as well as suppliers. Locational advantage of the manufacturing unit: The plant of the company is situated at Bhilwara within close proximity to the manufacturers of raw material, thus leading to low transportation cost. Credit challenges Risk associated with project execution: The company faces risk associated with the execution and stabilization of the project as per expected operating parameters and within estimated costs and stipulated timelines. Also, the debt funded capex will lead to the stretch in the gearing and coverage indicators in the initial years. Profitability susceptible to fluctuations in raw material prices: The key raw materials for the company would be cotton, polyester and blended yarns which are dependent on market dynamics, hence, the profitability will remain susceptible to fluctuations in raw material prices Also, the fabric manufacturing industry is fragmented and highly competitive thereby limiting price flexibility. Intense competitive pressures on account of fragmented industry structure: Due to limited entry barriers, MSPL faces stiff competition from established organised players and dominant unorganised players in the industry. MSPL was taken over by Mr Mohammad Sabir in January 2018 and is engaged in the manufacturing and trading of fabrics used in suitings and shirtings. The manufacturing unit of the company is located in Bhilwara, Rajasthan. The company is proposing to install a total of 46 sulzer looms with combined installed capacity of 64.78 lakh meters per annum (LMPA) for the manufacturing of fabrics used in suitings and shirtings. The commercial production is expected to commence in May 2018. The company's operations will be divided into three different verticals viz. manufacturing of finished fabrics (suitings) under its own brand name, manufacturing of unfinished fabrics (suitings) to be sold to the other textile houses and job work sales. The promoter of the company, Mr. Sabir has an experience of more than 20 years in the textile business with three manufacturing units- Swaraj Suiting Private Limited, Sakina Textiles and Divine Suiting Pvt Ltd. All the three units are located in Bhilwara, Rajasthan. OMEGA PREMISES: CRISIL Moves B Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Omega Premises Private Limited (OPPL) for obtaining information through letters and emails dated April 12, 2018 and April 18, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 0.25 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Lease Rental 8.10 CRISIL B/Stable (Issuer Not Discounting Loan Cooperating; Rating Migrated) Long Term Loan 16.50 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Overdraft 4.60 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 20.55 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 rating 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 Omega Premises Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Omega Premises Private Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Omega Premises Private Limited to 'CRISIL B/Stable Issuer not cooperating'. OPPL is part of the Suhas Mantri group, which was set up in the early 1990s. The company undertakes commercial and residential real estate projects, mainly in Pune. PARADISE HEALTHCARE: CARE Assigns 'B' Rating to INR4.60cr Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Paradise Healthcare (PRH), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 4.60 CARE B; Stable Assigned Long-term/Short- 1.60 CARE B; Stable/CARE A4 Term Bank Assigned Facilities Detailed Rationale and key rating drivers The ratings assigned to the bank facilities of PRH are primarily constrained on account of its financial risk profile marked by small scale of operation, thin profitability and weak liquidity position along with working capital intensive nature of operation in FY17 (refers to a period of April 1 to March 31). The ratings further remained constrained on account of PRH's partnership nature of constitution, risk associated with on-going debt funded project, presence in highly competitive and regulated Pharmaceutical industry and operating margins susceptible to volatile raw material prices and high customer concentration risk. The ratings, however, derive comfort from experienced partners, stable outlook for pharmaceutical industry and comfortable capital structure and debt protection metrics. The ability of PRH to increase its scale of operations along with improvement in profitability and liquidity position, efficient management of its working capital requirement will be the key rating sensitivity. Also, timely completion of the on-going debt funded capex within envisaged cost remains crucial. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operations with thin profit margins: PRH's scale of operations remained small marked by Total Operating Income (TOI) of INR1.86 crore during FY17. The profitability level stood thin marked by PBILDT margin and PAT margin of 5.44% and 0.09%, respectively during FY17. Weak liquidity position along with working capital intensive nature of operation: Liquidity position stood weak marked by current ratio of 0.77 times as on March 31, 2017. The operation stood working capital intensive marked by full utilisation of its working capital limit for past six months ended March 2018. Partnership nature of its constitution: The constitution as a partnership firm restricts PRH's overall financial flexibility in terms of limited access to external funds for any future expansion plans. Further, there is inherent risk of possibility of withdrawal of capital and dissolution of the firm in case of death/insolvency of partner. Risk associated with on-going debt funded project: PRH is currently undertaking an expansion project for manufacturing of APIs at Baroda (Gujarat). Total project cost of the same is INR6.35 crore which is to be funded through term loan of INR4.60 crore, partner's capital of INR1.25 crore and unsecured loan of INR0.50 crore. The financial closure for the project has been achieved. Successful completion of the project within envisaged time and cost will remain crucial. PRH has incurred a total of 40% of cost towards the project till April 16, 2018. Presence in highly competitive and regulated Pharmaceutical industry: Competition in industry of pharma intermediates and ingredients is increasing with increase in number of players in the industry. Profitability in bulk drug manufacturing is primarily driven by scale of operations. Pricing power remains limited owing to significant cost pressures from the end user segment coupled with considerable competitive intensity. Some large domestic pharmaceutical companies also increase backward integration as bulk drugs manufacturer. Pharmaceutical sector is one of the most regulated sectors by the government because of its relevance with public health. Operating margins susceptible to volatile raw material prices and high customer concentration risk: PRH's profitability is susceptible to volatility in raw-material price movement as it accounts for roughly 95% of the total cost of sales. Hence, the profitability margins of the entity could get adversely affected with any sudden spurt in the raw material prices. PRH has served reputed clients during FY17. Top three customers constituted 85% of the total sales during FY17 resulting into higher customer concentration risk. This also results into low bargaining power of PRH. Key Rating Strengths Experienced partners: PRH is promoted by Mr. Kaushik Patel and Mr. Hitesh Sagpariya both of whom possesses 6 years of experience in pharmaceutical industry and look after overall management of the firm. Stable demand outlook for Pharma industry: The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value. Branded generics dominate the pharmaceuticals market, constituting nearly 71 to 80 per cent of the market. The Indian pharmaceuticals market is expected to grow to US$ 100 billion by 2025, driven by increasing consumer spending, rapid urbanization and rising healthcare insurance among others. Pharma sector's revenues are expected to grow by 9% year-on-year through fiscal 2020. India is now among the top five pharmaceutical emerging markets. Branded generics dominate the pharmaceuticals market, constituting nearly 80 per cent of the market share (in terms of revenues). The sector is expected to generate 58,000 additional job opportunities by the year 2025. Comfortable capital structure and debt protection metrics: PRH's capital structure as on March 31, 2017 stood comfortable marked by overall gearing ratio of 0.35 times. Due to low debt level as on March 31, 2017, the debt coverage indicators also stood comfortable marked by total debt to GCA of 3.04 times as on March 31, 2017 and interest coverage of 83.33 times during FY17. Baroda (Gujarat) based PRH is a partnership firm established in 2013 to manufacture pharmaceutical and chemical products. PRH is promoted and managed by Mr. Kaushik Patel and Mr. Hitesh Sagpariya who possess long experience in pharmaceutical industry. PRH manufactures Intermediates and Specialty Chemicals like IPBC (Iodopropynyl butylcarbamate), Intermediates of Lornoxicam, Mematine HCI, Adalapine, Fluconazole etc which find its application in anti-inflammatory, anti-acne, anti-fungal drugs. It has manufacturing plant located at Ankleshwar (Gujarat) for manufacturing of intermediates with installed capacity of 150 MT per annum as on March 31, 2017. PRH is setting up a new plant for manufacturing of Active Pharmaceutical Ingredients (APIs) like Lornoxicam, Tenoxicam, Memantine HCI, Quetiappine Fumrate, Adapalene, Fluconazole at Baroda and is expecting to commence commercial operations from this facility by July, 2018. PIONEER EMBROIDERIES: CRISIL Cuts Rating on INR15MM Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the bank loan facilities of Pioneer Embroideries Limited (PEL) to 'CRISIL D/ CRISIL D' from 'CRISIL B-/Stable/CRISIL A4'. The downgrade reflects the delays in interest servicing, caused primarily by stretch in working capital cycle, further aggravated by a weak liquidity position characterized by near-full utilization of fund-based working capital limits. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.4 CRISIL D (Downgraded from 'CRISIL B-/Stable') Cash Credit 15.0 CRISIL D (Downgraded from 'CRISIL A4') Proposed Fund- 1.45 CRISIL D (Downgraded from Based Bank Limits 'CRISIL B-/Stable') Key Rating Drivers & Detailed Description Weaknesses * Delays in interest servicing and weak liquidity: There have been instances of delay in interest servicing because of stretched liquidity. That's primarily due to working capital intensive operations which is reflected in gross current days (GCA) of 108 days as on March 2017, further aggravated by a weak liquidity position characterized by near-full utilization of fund-based working capital limits. Liquidity is likely to remain under pressure over the medium term because of working capital intensive operations. * Susceptibility to volatile raw material prices and intense competition: Volatility in raw material prices and intense competition constrain the pricing pressure and ability to pass on the hike in raw material prices to customers, as a result of which consolidated operating margin has been range bound at 5.5- 6% over the two years ended March 31, 2017. Strength * Established market position, backed by extensive experience of the promoters: The established market position, also reflected in revenue of Rs.238.2 crore in fiscal 2017, is backed by more than two decade-long experience of the promoters in the embroidered and knitted fabric segment. The company is also engaged in retail through its subsidiary, Hakoba Lifestyle Ltd, and sells fabrics under the Hakoba brand. Incorporated in 1991, PEL manufactures and exports DDPY and embroidered fabrics, and laces. The Mumbai-based company has been promoted by Mr Raj Kumar Sekhani. The manufacturing facilities are located in six different locations across India. PK FOODS: Ind-Ra Maintains 'B+' Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained P.K. Foods' (PKF) 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 B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR100 mil. Fund-based working capital limits maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE PKF started a rice milling business in 2010 in Rajpura, Punjab. The company procures raw material (paddy) from local dealers at market-driven prices and sells the final product (basmati rice) to exporters and local customers. PRAGATI EDIBLE: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Pragati Edible Processing Private Limited's (PEPPL) 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 BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR144 mil. Fund-based working capital limits maintained in Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR86 mil. Long-term loans maintained in Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR20 mil. Non-fund-based working capital limits maintained in Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 18, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE PEPPL was incorporated in 2007 by Mr. Purushottam Agarwal and Mr. Sunil Kumar Agarwal. The company manufactures a wide assortment of rice produced at its facility in Mednapore, West Bengal, and trades and exports the rice. The unit commenced commercial production in June 2011 and has an installed capacity of 29,820 metric tons per annum (mtpa) of parboiled rice, 3,780mtpa of rice bran and 8,400mtpa of rice husk. R.V. INFRASTRUCTURAL: CARE Assigns B+ Rating to INR0.40cr Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of R.V. Infrastructural Private Limited (RV), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 0.40 CARE B+; Stable Assigned Long-term/Short- 7.60 CARE B+; Stable/CARE A4 Term Bank Assigned Facilities Detailed Rationale and key rating drivers The ratings assigned to the bank facilities of RV are constrained by its small scale of operations, leveraged capital structure and dependency on growth of the infrastructure industry. The ratings are further constrained on account of RV's capital intensive nature of operations. The ratings, however, draw comfort from experienced management, moderate operating margin and coverage indicators. Going forward, the ability of the company to increase its scale of operations while maintaining its profitability margins and improving its capital structure shall be the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weakness Small scale of operations: The scale of operations stood small as marked by total operating income of INR 5.32 crore in FY17 and gross cash accruals of 2.08 crores in FY17. The small scale limits the company's financial flexibility in times of stress and deprives it from scale benefits. During 11MFY18 (refers to period starting from April 1 to February 28; based on provisional results), the company has achieved a total operating income of INR 4.50 crore. Leveraged capital structure: The capital structure of RV stood leveraged owing to high dependence on external borrowings mainly in the form equipment loans. The debt equity and overall gearing stood high at 4.40x and 4.55x respectively as on March 31, 2017. Dependency on growth of infrastructure industry: RV leases construction equipment / heavy machinery mainly to companies operates in the infrastructure industry. Thereby the company's revenue and future growth are dependent on growth in the infrastructure industry. Further, the company is also exposed to the cyclicality associated with this industry, which has a direct linkage with the general macroeconomic scenario, interest rates, government spending, etc. Capital intensive nature of operations: RV is engaged in the leasing of machinery which requires large investments to support the growth in scale of operations, for purchase and maintenance of machinery. These services, therefore, are capital intensive in nature and need to be supported by regular capital expenditure which can impact the financial position of the company. Presence in a competitive industry: RV's business risk profile is constrained as it is exposed to competition from other established players operating in the industry. There are a number of small and regional players catering to the same market which limits the bargaining power that the company exerts pressure on its margins. Smaller companies in general are more vulnerable to intense competition due to their limited pricing flexibility, which constrains their profitability as compared to larger companies who have better efficiencies and pricing power considering their scale of operations. Key Rating Strengths Experienced management: The overall operations of RV are being managed by Mr. Suchit Aggarwal and Mrs. Apurva Aggarwal. Both of them are graduates by qualification and have around two and one and a half decades of experience in the leasing equipment through their association with RV. They are assisted by a second tier management team which has requisite experience in their respective fields. Moderate operating margin and coverage indicators: The company is in the business of leasing of construction equipment wherein the profitability margins are normally high due to low operating expenses. Salaries to operating staff constitute major portion of operating expenses and accounts for around 19% of cost of sales during FY17 (refers to the period April 1 to March 31). Other costs include maintenance expenses of equipment which is mainly in the form of repairs. The PBILDT margin of the company hovered around 53% during last three financial years (FY15-FY7). The company, however, registered a net loss of INR 0.07 in FY17 on account of depreciation, interest and provision for deferred tax. The coverage indicators stood moderate owing to moderate profitability margins. The interest coverage ratio and stood at more than 3 times and the total debt to gross cash accruals stood at less than 5 times for the past three financial years (FY15-FY17; FY refers to period from April 1 to March 31). Delhi based, RV Infrastructural Private Limited (RV) was incorporated on March 30, 1999 as a private limited company by Mr. Suchit Aggarwal and Mrs. Apurva Aggarwal. RV is engaged in the leasing of earthmoving infrastructure machinery. It caters primarily to infrastructure development companies who execute various types of contracts having varying tenures. RAJ-SNEH AUTO: CRISIL Migrates B Rating to Not Cooperating ---------------------------------------------------------- CRISIL has been consistently following up with Raj-Sneh Auto Wheels Private Limited (RAWPL) for obtaining information through letters and emails dated February 20, 2018, April 6, 2018, April 11, 2018 and April 16, 2018 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) Inventory Funding Facility 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 Raj-Sneh Auto 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 Raj-Sneh Auto 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 Raj-Sneh Auto Wheels Private Limited to 'CRISIL B/Stable Issuer not cooperating'. Incorporated on October 29, 2016, and promoted by Mr. Priyank Jain, Mr. Mayank Gupta, and Mr. Ashish Jain, RAWPL has Maruti's Nexa dealership in Meerut. It operates under the 3S (sales, service, and spares) system for all the Nexa models (Baleno and S-Cross). SANSIDH AGRO: CRISIL Lowers Rating on INR9MM Cash Loan to B+ ------------------------------------------------------------ CRISIL has downgraded its rating on the long term bank facilities of Sansidh Agro Industries Private Limited (SAIPL) to 'CRISIL B+/Stable' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') Proposed Long 5 CRISIL B+/Stable (Downgraded Term Bank Loan from 'CRISIL BB/Stable') Facility Rating downgrade reflects deterioration in overall credit risk profile of SAIPL Post standalone basis. Earlier CRISIL combined the business and financial risk profiles of SAIPL and Sri Ramanjaneya Raw and boiled rice mill (SRRB as the two entities, earlier referred to as the Ramanjaneya group, were under a common management and have considerable operational and business linkages with each other. However in December 2017 SRRB has been sold out to Mr. Raja Chinammaswamy and Mr. Gurram Sudhakar (current partners) resulting in no business and financial linkages, expected henceforth. Furthermore, standalone business performance also declined, as the factory was not operational for some months. The rating continues to reflect SAIPL's modest scale of operations in the intensely competitive edible oils industry and its working-capital-intensive operations. The rating also factors in SAIPL's below average financial risk profile marked by modest net worth, high gearing and below average debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of SAIPL's promoters. Analytical Approach For arriving at its ratings, CRISIL has considered SAIPL on standalone basis. CRISIL has, however, discontinued its earlier approach of combining the business and financial risk profiles of Sansidh Agro Industriess Private Limited (SAIPL) with Sri Ramanjaneya Raw and boiled rice mill (SRRB). Analytical approach has been changed as, in December 2017, SRRB has been sold out to Mr. Raja Chinammaswamy and Mr. Gurram Sudhakar (current partners). Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in the intensively competitive edible oil industry: The company's scale of operations is modest, as indicated by its estimated revenues of around Rs.45.41 Cr in 2016-17. Modest scale of operations restricts the company from achieving economies of scale. * Working-capital-intensive operations: SAIPL's working capital intensive nature of operations is reflected in gross current assets (GCA) of around 144 days as on March 31, 2017 owing to inventory of 107 days and debtors of 39 days. * Below average financial risk profile: SAIPL had high gearing of 3.08 times and net worth and INR4.59 Cr respectively as on March 31, 2017. The interest coverage and net cash accruals to total debt were at 1.43 times and 4 percent respectively in 2016- 17. Strengths * Promoters' extensive industry experience: SAIPL is promoted by Mr. Uduta Krishnaiah and Family. The promoters have an extensive experience of over three decade in the rice milling business which has aided SAIPL to establish a comfortable presence in the domestic market. Furthermore, promoter's contacts and long- standing relations with rice mills for procuring rice husk will continue to benefit SAIPL over the medium term. Outlook: Stable CRISIL believes SAIPL will continue to benefit over the medium term from the promoters' extensive industry experience and its established customer relationships. The outlook may be revised to 'Positive' if there is substantial increase in its scale of operations, while maintaining its profitability margins, or there is sustained improvement in its working capital cycle and financial risk profile. Conversely, the outlook may be revised to 'Negative' if profitability margins decline steeply or a significant deterioration in its financial risk profile caused most likely because of a stretch in its working capital cycle. Incorporated in 2011, SAIPL manufactures rice bran oil and de- oiled rice bran, which are used as animal feed. The Company has rice bran processing capacity of 200 tonnes per day (TPD) in Nellore district in AP. The company is managed by Mr. Uduta Krishnaiah. SHANTDEEP METALS: CRISIL Reaffirms B+ Rating on INR10MM Loan ------------------------------------------------------------ CRISIL has reaffirmed its rating on the long-term bank facilities of Shantdeep Metals Private Limited (SMPL) at 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 1 CRISIL B+/Stable (Reaffirmed) Term Loan 10 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect a modest scale, and working capital-intensive nature, of operations, and a subdued financial risk profile. These rating weaknesses are partially offset by the extensive experience of the promoters in the automotive industry, and an established relationship with customers and suppliers. Analytical Approach For arriving at its rating, CRISIL has treated unsecured loans of INR1.9 crore as on March 31, 2018, as neither debt nor equity, as the loans will be retained in the business during the tenure of the bank loan. Key Rating Drivers & Detailed Description Strengths * Modest scale of operations: Revenue is estimated at a modest INR35 crore for fiscal 2018, amid intense competition. This limits pricing power with suppliers and customers, thereby constraining profitability. * Working capital-intensive operations: Gross current assets were high at 104 days, driven by receivables of 83 days, as on March 31, 2017. * Subdued financial risk profile: The networth was modest at INR4.29 crore and the gearing high at 3.32 times, as on March 31, 2017. Interest coverage ratio was moderate, at 2.0 times in fiscal 2017. The financial risk profile is estimated to have remained subdued in fiscal 2018. Strengths * Extensive industry experience of promoters, and established relationship with customers and suppliers: Operations are managed by Mr Pradeep Chaudhary, Ms Sanjot Chaudhary, and Mr Prashant Rahane. Mr Chaudhary has been in the automotive industry for over 17 years. The experience has helped to develop healthy customer relationships and bag repeat orders. Outlook: Stable CRISIL believes SMPL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is a significant increase in revenue while operating profitability stays healthy, resulting in higher cash accrual. The outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, weakens because of low cash accrual, a stretched working capital cycle, or larger-than-expected, debt-funded capital expenditure. SMPL, incorporated in 2009, undertakes activities such as heat treatment for automotive components on a job-work basis. In 2013, it started manufacturing gears for two-wheelers. Its manufacturing facilities are in Aurangabad, Maharashtra. SHARDIYA AGRITECH: CARE Assigns B+ Rating to INR4.57cr LT Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Shardiya Agritech Private Limited (SAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 4.57 CARE B+; Stable Assigned Detailed Rationale & Key rating Drivers The ratings assigned to the bank facilities of SAPL are primarily constrained on account of its presence in highly competitive and fragmented industry. The ratings, further, constrained on account of continuous net loss, moderate solvency position and moderate liquidity position. The ratings, however, drive strength from experienced directors with long track record of operations along with continuous growing scale in operations. The ability of the company to increase in the scale of operations with improvement in the profitability and solvency position and efficient management of working capital are key rating sensitivities. Detailed description of the key rating drivers Key Rating Weakness Continuous net loss, moderate solvency position and moderate liquidity position: PBILDT margin of the company stood healthy at 60.86% in FY17, improved by 1231 bps over FY16 mainly on account of higher increase in TOI of the company as against increase in operating expenses of the company. However, the company has registered continuous net losses owing to high interest and depreciation expenses. The capital structure of the company stood leveraged with an overall gearing of 3.22 times as on March 31, 2017, deteriorated from 2.99 times as on March 31, 2016 mainly on account of increase in term loan as well as increase in unsecured loans of the company which is partially offset by infusing share capital of INR 0.43 crore in FY17 for construction of new warehouses. The debt coverage indicators of the company stood moderate with total debt to GCA of 9.76 times as on March 31, 2017. Further, the interest coverage ratio stood comfortable at 2.50 times in FY17. The operating cycle of the firm stood elongated with 120 days in FY17 mainly on account of higher collection period. However, liquidity ratios of the company stood comfortable with current ratio and quick ratio of 2.09 times as on March 31, 2017. Highly competitive and fragmented industry: The warehousing industry is characterized by highly fragmented and competitive in nature as evident by the presence of numerous unorganized and few organized players. Due to this, the players in the industry do not have any pricing power. Key Rating Strengths Experienced directors with long track record of operations Mr. Om Prakash Shardiya, director, graduate by qualification, has one decade of experience in the warehousing industry and looks after finance function of the company. Mr. Manohar Nandram Shardiya, director, graduate by qualification, has more than one decade of experience in the warehousing industry. Mr. Kailash Shardiya, director, graduate by qualification, has around 6 years of experience in the industry. Mr. Narayan Shardiya, director, has around 6 years of experience in the industry. Continuous growing scale of operations: The company has witnessed continuous growth in Total Operating Income (TOI) which grew at a Compounded Annual Growth Rate (CAGR) of 46.27% during last three financial years ended FY17. During FY17, TOI of the company has increased by 82.83% over FY16 mainly on account of increase in rent income owing to income generated from newly established warehouse in FY17. Indore (Madhya Pradesh) based Shardiya Agritech Private Limited (SAPL) was formed in 2011 by Mr. Om Prakash Shardiya, Mr. Manohar Nandram Shardiya, Mr. Kailash Shardiya and Mr. Narayan Shardiya. SAPL is operating cold storages for agro commodities to provide the services to farmers. The company has 3 cold storages with an aggregate storage capacity of 15000 Metric Tonnes Per Annum (MTPA) situated at Simrol in Indore district of Madhya Pradesh. Further, the director is operating a proprietorship firm namely "Shardiya Traders" which is engaged in trading of Potatoes. The firm supplies potatoes mainly to Pepsico, I.T.C., Balaji wafers Private Limited and Prataap Snacks Limited etc. SHREE VENTURES: CRISIL Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Shree Ventures - Nagpur (SV) for obtaining information through letters and emails dated April 12, 2018 and April 18, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating; Rating Migrated) Proposed Long 1 CRISIL D (Issuer Not Term Bank Loan Cooperating; Rating Migrated) Facility The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Shree Ventures - Nagpur, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Shree Ventures - Nagpur 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 Shree Ventures - Nagpur to CRISIL D Issuer not cooperating'. Set up in 2011 in Nagpur as a proprietorship concern by Mr. Ujwal Pagariya, SV is engaged in wholesale trading of agricultural products. SREE ANJANEYA: CRISIL Lowers Rating on INR24MM LT Loan to D ----------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Sree Anjaneya Medical Trust (SAMT) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL D (Downgraded from 'CRISIL A4') Long Term Loan 24.0 CRISIL D (Downgraded from 'CRISIL B+/Stable') Proposed Short Term .25 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL A4') Short Term Bank 4.00 CRISIL D (Downgraded from Facility 'CRISIL A4') The rating downgrade reflects delays in repayment of bank debt by SAMT. These delays have been due to weak liquidity arising from cash flow mismatch. The rating reflects susceptibility of the operating performance to regulatory changes. This rating weakness is partially offset by the extensive experience of the trustees in the medical industry, and an established market position in Kozhikode, Kerala. Key Rating Drivers & Detailed Description Weaknesses * Susceptibility to regulatory restrictions in the education sector: The establishment and running of higher educational institutions are governed by various governmental agencies such as the Medical Council of India (MCI) with detailed procedures for granting permission and approvals that are renewed every year till recognition. Furthermore, the course fee charged from students is not decided entirely by the trust, but by the affiliated universities, Kerala state government, and other regulatory agencies, rendering the trust susceptible to regulations and restrictions by regulatory bodies. Strength * Extensive experience of the trustees: The trustees have extensive experience in the medical education segment; this has aided in successful stabilisation of operations within a short span of time. The student intake has been healthy with close to 100% occupancy. The medical college is a recognized medical college as per the rules of MCI. The extensive experience of trustees will continue to support the trust's business risk profile. Established in Kerala in 2005, SAMT is a charitable trust constituted under the Indian Trust Act. It commenced operations of hospital in 2008 and medical college in 2010. SAMT runs a multi-specialty hospital and operates educational institutions such as Malabar Medical College and Research Centre, Sree Anjaneya Institute of Dental Sciences, Sree Anjaneya College of Nursing, Sree Anjaneya College of Paramedical Sciences. The medical college is Kerala's first private medical college to have been approved intake of 150 seats since inception. SRI ADISANKARACHARYA: CRISIL Reaffirms B Rating on INR12MM Loan --------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating to the long- term bank facilities of Sri Adisankaracharya Cotton and Oil Mills Private Limited (SAC; part of the Ramineni group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12 CRISIL B/Stable (Reaffirmed) Long Term Loan 2.1 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 2.9 CRISIL B/Stable (Reaffirmed) The rating reflects the group's below-average financial risk profile because of high gearing, small networth, and weak debt protection metrics, and large working capital requirement. These weaknesses are partially offset by the extensive experience of its promoters in the cotton industry and established relationship with key customers and suppliers. Analytical Approach For arriving at its rating, CRISIL has combined the business and financial risk profiles of SAC and Ramineni Agro industries Private Limited (RAIPL). This is because the two companies, together referred to as the Ramineni group, are in the same business, and have common management and significant operational linkages. Key Rating Drivers & Detailed Description Weaknesses * Working capital-intensive operations: Gross current assets were 173 days as on March 31, 2017, due to sizeable inventory of 120 days. GCA days are expected to remain high over the medium term. * Below-average financial risk profile: Networth is estimated to be small INR7.3 crore and gearing high at 3.2 times as on March 31, 2018. Debt protection metrics is also weak, with interest coverage and net cash accrual to total debt ratios of 1.5 times and 9%, respectively, for fiscal 2018. Strengths * Extensive experience of promoters: Presence of over three decades in the cotton industry has enabled the promoters to establish strong relationship with customers and suppliers. Outlook: Stable CRISIL believes the Ramineni group will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' in case of a substantial and sustained increase in revenue and profitability margins, or if networth increases with sizeable equity infusion. The outlook may be revised to 'Negative' if profitability margins decline steeply, or capital structure weakens further due to large, debt- funded capital expenditure or stretched working capital cycle. Set up in 2012 by Mr. R Srinivasa Rao and his family members, SAC gins and presses raw cotton. Established in 2009 in Guntur, Andhra Pradesh, RAIPL is engaged in a similar business but also sells cotton lint and cotton seeds. STERLING BIOTECH: Andhra Bank Files Insolvency Bid Against Firm --------------------------------------------------------------- LiveMint reports that Andhra Bank has approached the National Company Law Tribunal (NCLT) against Gujarat-based pharmaceutical firm Sterling Biotech Ltd to recover about INR5,400 crore. On May 11, Shyam Kapadia, representing the joint lender forum (JLF) led by Andhra Bank, argued that the company is still running and hence they have decided to go ahead with the insolvency proceedings, LiveMint relates. "The company owes more than Rs4,000 crore to the banks, while the entire Sterling Group, which has other business interests as well, owes over Rs5,000 crore to banks," the report quotes Kapadia as saying. LiveMint says the advocate argued that the promoters have fled India. According to the report, the enforcement directorate (ED) is also conducting an investigation in the matter where the bank has alleged that the company had taken loans of more than Rs5,000 crore from the consortium fraudulently and the same became non- performing assets. The company's default stands at over Rs5,400 crore as on December 2016. The report notes that the division bench of the NCLT presided by B.S.V. Prakash Kumar and Ravikumar Duraisamy after hearing the arguments observed that the matter requires further investigation. The tribunal has directed the Registrar of Companies (RoC), Mumbai, to explain the intricacies of the case to the tribunal on the next date of hearing. The tribunal has adjourned the case on May 14, the report notes. In a separate case, in January 2018, the ED had arrested former Andhra Bank director Anup Prakash Garg in this connection under the Prevention of Money Laundering Act (PMLA), according to LiveMint. The ED had lodged the money laundering case after taking cognizance of an FIR registered by the Central Bureau of Investigation (CBI). LiveMint relates that at the time of producing Garg in the court, the agency had said that during the probe, it came across "certain entries" in a diary seized by the Income Tax department in 2011, which showed various cash payments amounting to Rs1.52 crore made to one "Mr Garg, director, Andhra Bank" by the Sandesara brothers between 2008 and 2009. The CBI had booked Garg, the firm Sterling Biotech, its directors Dixit, Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Nitin Jayantilal Sandesara and Vilas Joshi, chartered accountant Hemant Hathi and some unidentified persons in connection with the case, the report says. Sterling Biotech Ltd manufactures pharmaceutical grade gelatin which has wide range of applications such as capsules, tablets, etc. It also manufactures Di-calcium Phosphate (DCP, a by-product of gelatine) and Co-enzyme Q10 (CoQ10). SULOCHANA EXPORTS: CARE Assigns B Rating to INR5.0cr LT Loan ------------------------------------------------------------ CARE Ratings has assigned rating to the bank facilities of Sulochana Exports (SE), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.00 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of SE is tempered by limited track record and small scale of operations, highly fragmented with intense competition from large number of players, financial risk profile marked by thin profitability margins, leveraged capital structure and weak debt coverage indicators and constitution as partnership firm with inherent risk of possibility of withdrawal of the partner's capital at the time of personal contingency. The rating, however, derives its strengths from experienced partners of the firm, increase in total operating income during review period and stable outlook of textile industry. Going forward, ability of the firm to increase its scale of operations and improve its profitability margins, improve the capital structure and debt coverage indicators and manage working capital requirements efficiently would be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Limited track record and small scale of operations: SE started its commercial operations from April 2015. Hence, it has a limited track record of operations. Furthermore, the scale of operations of the firm marked by total operating income remained small at INR 20.39 crore in FY17 with low net worth base of INR2.08 crore as on March 31, 2017 as compared to other peers in the industry. Financial risk marked by thin profitability margins, leveraged capital structure and weak debt coverage indicators during review period: The profitability margins of the firm remained thin during review period due to highly competitive industry with presence of numerous players. Furthermore, the PBILDT margin declined from 3.19% in FY15 to 2.71% in FY17 due to increase in power & fuel costs and selling expenses on account of initial year of operations. The PAT margin of the firm, though stood thin, improved from 0.11% in FY15 to 0.18% in FY17 due to increase in PBILDT levels coupled with decline in depreciation provision. The capital structure of the firm remained leveraged during review period. The debt equity ratio and overall gearing ratio of the firm stood at 0.24x and 2.02x respectively as on March 31, 2017 compared to 0.41x and 1.65 respectively as on March 31, 2015. Working capital borrowings is the major portion (around 88 %) of the debt of the firm which is required to manage its day to day operations. The debt coverage indicators of the firm remained weak marked by total debt/GCA which stood at 57.54x in FY17 due to low cash accruals, almost full utilisation of working capital limits and term loan taken by the firm for installing the plant and machinery. The PBILDT interest coverage ratio, though fluctuating, stood in the range of 1.16x-1.19x, remained weak due to thin operating margins with increase in interest and finance costs. Working capital intensive nature of operations: Textile Industry is categorized by working capital intensive nature of operations mainly on account of high inventory holding for about 3-4 months to support production requirements along with stock of finished goods to cater customers' requirements. However, the operating cycle of the firm improved to 98 days in FY17 compared with 121 days in FY16 at the back of improvement in average inventory period. The firm receives the payment from its customers within 15-25 days, however for few customers it extends the credit period for 2-3 months depending on the long term relationship. The firm makes the payment to its suppliers within a month. The average utilization of working capital limit stood at 90% for the last 12 month ended November 30, 2017. Highly fragmented industry with intense competition from large number of player: The cotton industry is highly fragmented in nature with several organized and unorganized players. The cotton yarn operators procure raw materials in bulk quantities to avail discount from suppliers to mitigate the seasonality associated with availability of cotton resulting in higher inventory holding period. Further, the profitability margins of the firm are susceptible due to fluctuation in raw material prices. Constitution of the entity as partnership firm with inherent risk of withdrawal of capital: Constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partner's capital at the time of personal contingency which can adversely affect its capital structure. Furthermore, partnership firms have restricted access to external borrowings as credit worthiness of the partners would be key factors affecting credit decision for the lenders. Key Rating Strengths Experienced partners for more than two decades in textile industry: SE is a partnership firm started by Mr. Madeswaran and his family members. Mr. Madeswaran is the only active partner, aged 51 years, and is a qualified graduate who has more than two decades of experience in textile industry. Increase in total operating income during review period: The total operating income of the firm has increased from INR 13.73 crore in FY15 to INR 20.39 crore in FY17 due to year-on-year increase in demand of cotton fabrics by its existing customers along with addition of new customers. The firm generates around 60% of income by selling its product in Tamil Nadu and the remaining 40% of sales are being generated from Gujarat and Andhra Pradesh. In 8MFY18, the firm achieved revenue of INR12 crore. Stable outlook of Textile Industry: The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million in the country. India is second in global textile manufacturing and also second in silk and cotton production. 100% FDI is allowed via automatic route in textile sector. Sulochana Exports (SE) was established in 2015 as a partnership firm and promoted by Mr. Madeswaran and his family members. The firm is engaged in manufacturing of cotton fabrics. The manufacturing unit is spread in total area of 45000 Sq. ft. located at Tiruchengode, Namakkal District (Tamil Nadu). SE purchases its key raw material (cotton yarn) from domestic market in Erode District, which is famous for cotton production in south India. The firm sells the cotton fabrics to the customers located at Tamil Nadu, Andhra Pradesh and Gujarat. The firm has an installed capacity of 15000 meters per day. The firm is utilizing around 85% of capacity per day. SUNRAJ CERAMIC: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sunraj Ceramic Pvt. Ltd.'s Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR7.40 mil. Term loan due on November 2017 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR22.5 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 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 2009, Sunraj Ceramic manufactures wall tiles. Its manufacturing plant is located in Wankaner District, Gujarat. SWASTIK CHEMICALS: CRISIL Reaffirms B+ Rating on INR9MM Loan ------------------------------------------------------------ CRISIL's rating on the long term bank facilities of Swastik Chemicals (SWC) continues to reflect the modest financial risk profile and vulnerability of its operating margin to volatility in input prices. These weaknesses are partially offset extensive industry experience of the management and its comfortable return on capital employed (RoCE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL B+/Stable (Reaffirmed) Analytical Approach CRISIL has treated unsecured loans from the proprietor of INR1.36 crore as on March 31, 2017, as neither debt nor equity as they are subordinated to bank debt and are expected to remain in the firm over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Modest financial risk profile: Total outside liabilities to adjusted networth (TOLANW) ratio remained high at 4.3 times as on March 31, 2017, against 4.4 times a year earlier. Interest coverage remained stable at 1.5 times in fiscal 2017. Networth was modest at INR1.6 crore as on March 31, 2017. However, networth supported by unsecured loans from the proprietor. * Vulnerability of operating margin to volatility in price: SWC operates in an industry where the price of the key raw material is volatile in nature. Any adverse movement in prices of mentha oil can adversely could hit their profitability. Strengths * Extensive experience of the proprietor: The proprietor's experience of over a decade has helped build relationships with customers and suppliers along the value chain. * Comfortable RoCE: RoCE was 12% over the three fiscals through 2017 and is expected to remain comfortable over the medium term. Outlook: Stable CRISIL believes SWC will continue to benefit from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if there is a significant improvement in business risk profile due to considerable increase in revenue and profitability without affecting working capital management, as well as improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of lower profitability or significant pressure on the firm's working capital management due to larger-than-expected inventory or delays in receivables. SWC is a proprietorship firm set up by Ms Neeta Gupta in 2003. The day-to-day business is managed by her husband, Mr Sanjay Agarwal. The firm manufactures mentha crystals and DMO from mentha oil at its unit in Rampur, Uttar Pradesh. TOBACCO TRADING: CARE Assigns B+ Rating to INR12cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of The Tobacco Trading Company (TTTC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 12.00 CARE B+; Stable Assigned Detailed Rationale& Key Rating Drivers The rating assigned to the bank facilities of TTTC are tempered by small scale of operations and fluctuating total operating income, leveraged capital structure and weak debt coverage indicators, fluctuating profitability margins, working capital intensive nature of operations due to high inventory holding period, vulnerability to government regulations, climatic risks and partnership nature of constitution with inherent risk of withdrawal of capital. The rating, however, derives strength by long track record and experience of the partners for more than two decades in tobacco business, reputed clientele base, favorable location for operating tobacco business and stable outlook of tobacco industry. Going forward, ability of the firm to increase its scale of operations and improve profitability margins and to manage working capital requirements efficiently would be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operations and fluctuating total operating income: The firm has a track record of twenty five years, however, the total operating income (TOI) of the firm remained low at INR16.40 crore in FY17 with a low net worth base of INR2.45 crore as on March 31, 2017 as compared to other peers in the industry. The total operating income of the firm is seen fluctuating during the review period. The total operating income increased from INR14.97 crore in FY15 to INR19.67 crore in FY16 due to increase in sales volume at the back of repetitive orders from existing customers. However the total operating income declined to INR16.40 crore in FY17 due to decline in orders from the new customers. Leveraged capital structure and weak debt coverage indicators: The capital structure of the firm marked by overall gearing stood leveraged during the review period. The overall gearing of the firm deteriorated from 3.72x as on March 31, 2015 to 5.13x as on March 31, 2017 due to increase in debt levels at the back of increase in utilization of working capital limits and availing unsecured loans from relatives. The debt coverage indicators marked by interest coverage and TD/GCA remained weak during the review period. The PBILDT interest coverage ratio has marginally deteriorated from 1.02x in FY16 to 1.01x in FY17 due increase in interest cost at the back of high utilization of working capital. The TD/GCA has deteriorated from 590.39x in FY 15 to 689.72x in FY17 due to due to increase in debt levels at the back of increase in utilization of working capital limits and availing unsecured loans from relatives. Fluctuating profitability margins: Profitability margins of the firm are seen fluctuating during the review period. The PBILDT margin of the firm has declined from 6.96% in FY15 to 5.81% in FY16 due to increase in raw material cost at the back of presence of stocks which were purchased in FY15 at high cost. However the PBILDT margin increased to 8.64% in FY17 due to increase in selling prices of tobacco. The PAT margin of the firm is fluctuating during review period i.e., in the range of 0.08%- 0.11% on account of increase in interest cost at back of increase in utilization of working capital bank facilities as the operations of the firm are working capital intensive owing to trading nature of business. Vulnerability of the tobacco business to government regulations and to climatic risks affecting tobacco availability: Tobacco products form a major source of revenue in the form of taxes to both central as well as state government and hence there are regular modifications in taxation laws/tax rates with respect to the same. Due to the harmful nature of the product, the various state governments have banned Manufacture and sale of various tobacco products under the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011 and availability of tobacco is highly susceptible to the factors like area under cultivation, Climatic risk, crop yield. Hence, the profitability margins of the firm are vulnerable to government regulations on tobacco products and availability of tobacco. Working capital intensive nature of operations due to high inventory holding period: The firm has working capital intensive nature of operations due to high inventory holding period. Owing to trading nature of business and availability of tobacco is seasonal in nature (susceptible to climatic risks), the firm has to buy the tobacco depending on availability. Due to market demand fluctuations, the firm holds the inventory till it gets better pricing. Hence the firm has elongated inventory holding period of 332 days in FY17. As the firm is purchasing Virginia tobacco on auction platforms, the average creditor's payment period is 1-7 days. The firm receives the payment from its customers within 1-15 days from the date of invoice. The operating cycle of the firm is stood at 329 days in FY17. Average working capital utilization of the firm during the last 12 months period ended 28th February 2018 is 95%. Constitution of the entity as a partnership firm with inherent risk of withdrawal of capital TTTC, being a partnership firm, is exposed to inherent risk of the partner's capital being withdrawn at time of personal contingency and firm being dissolved upon the death/retirement/insolvency of the partners. Moreover, partnership firm business has restricted avenues to raise capital which could prove a hindrance to its growth. Key Rating Strengths Long track record and experience of the partners for more than two decades in tobacco business: The Tobacco Trading Company (TTTC) was established in 1992 as a partnership firm, initially by Mrs.G.Saraswathi, Mr.V.Lakshmi Narayana, Mr.G.Maheswara Rao, Mr.V.Malakondaiah, Mr.V.Hanumantha Rao and Mr.U.Navakrishna. Later the firm was reconstituted in the year 1997 and Mrs.G.Saraswathi, Mr.G.Vasu Babu and Mr.G.Jaya Prakash Narayan are the partners in the reconstituted firm. Mr.G.Vasu Babu is a graduate by qualification and has more than 20 years of experience in same line of business. Further, Mr.G.Jaya Prakash Narayan is a qualified graduate and has experience of more than 20 years in the same line of business. The above factors helped the firm in approaching tobacco boards for purchasing tobacco in auction platforms and to establish relationship with customers. Reputed Clientele base and favorable location for doing tobacco business: The firm has reputed client base like ITC Limited (CRISIL AAA; Stable/ CRISIL A1+ reaffirmed on October 24, 2017), Alliance One Industries Private Limited, Premier Tobacco Packers who are into the business of selling cigarettes and exporting tobacco related products. The firm has ease of approaching the suppliers of tobacco as the firm is having its administrative office cum godown at Tangutur (Andhra Pradesh) which is located in the major tobacco growing area in Andhra Pradesh. Stable outlook of tobacco industry: Cigarettes currently represent one of the most popular forms of tobacco, accounting for nearly 90% of the global tobacco sales value. The global cigarette market today represents a multi-billion dollar market and according to IMARC group, its total revenues reached values worth US$ 816 Billion in 2017, representing a CAGR of around 7% during 2009-2017. Despite falling volumes in developed markets as a result of an increasing awareness on the harmful effects of cigarette smoking, manufacturers have been able to increase value growth. Factors driving the cigarette market include a continuous increase in the prices of cigarettes and an increasing popularity of premium products. Another major factor driving the growth is the rising consumption of cigarettes in developing countries. Owing to the aforementioned reasons, the outlook for tobacco industry looks stable for the medium term. Andhra Pradesh based, The Tobacco Trading Company (TTTC) was established in 1992 as a partnership firm, by Mrs.G.Saraswathi, Mr.V.Lakshmi Narayana, Mr.G.Maheswara Rao, Mr.V.Malakondaiah, Mr.V.Hanumantha Rao and Mr.U.Navakrishna. Later the firm was reconstituted in the year 1997 and Mrs.G.Saraswathi, Mr.G.Vasu Babu and Mr.G.Jaya Prakash Narayan are the partners in the reconstituted firm. The Tobacco Trading Company (TTTC) is an authorized licensed dealer in tobacco registered with Tobacco Board for trading of Virginia tobacco. VTT is mainly engaged in trading of Virginia tobacco. The firm purchases the raw material i.e., Wet Virginia tobacco through the competitive bidding process conducted by Tobacco Board (TB) at Andhra Pradesh location. The TB collects the tobaccos from farmers, who are licensed holder to grow any particular tobacco. Further, these tobaccos are put in tender process. After successfully winning the tender, the firm processes the Virginia tobacco manually by separating the tobacco leaves, with the help of local contractual workers. After separation of tobacco leaves, the firm outsources the process like threshing. Threshing process involves conditioning of tobacco with heat and moisture, and finally re- drying the Virginia tobacco. The processing unit for separation of tobacco leaves is located at Tangutur which is 20 km away from Ongole, where tobacco is one of the major crops. VMD MILLS: Ind-Ra Maintains BB- Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained VMD Mills Pvt Ltd.'s (VMD) 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 BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR106.5 mil. Term loan maintained in Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR50 mil. Fund-based limit maintained in Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR19.5 mil. Non-fund-based limit maintained in Non- Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 25, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE VMD manufactures and exports yarns. The company is managed by Mr. AP Dhandapani and his family. Its registered office is in Coimbatore. The company has an installed capacity of 36,000 tons per annum. WIINTRACK EXPORTS: ICRA Maintains D Rating in Not Cooperating ------------------------------------------------------------- ICRA has revised the long-term rating to [ICRA]D ISSUER NOT COOPERATING from [ICRA]BB- ISSUER NOT COOPERATING for the INR3.00-crore term loan facility of Wiintrack Exports. ICRA has also revised the short-term rating to [ICRA]D ISSUER NOT COOPERATING from [ICRA]A4 ISSUER NOT COOPERATING for the INR7.00 fund based facility of Wiintrack. ICRA had earlier moved the rating of Wiintrack to the 'ISSUER NOT COOPERATING' category due to non cooperation by the entity in providing required information for carrying out the surveillance of the rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 3.00 [ICRA]D ISSUER NOT COOPERATING; downgraded from [ICRA]BB- (Stable) and continues to Remain in the 'Issuer Not Cooperating' Category Fund based facility 7.00 [ICRA]D ISSUER NOT COOPERATING; downgraded from [ICRA]A4 and continues to remain in the 'Issuer Not Cooperating' Category Rationale The rating downgrade follows the delays in debt servicing by Wiintrack Exports to the lender, as confirmed by them to ICRA. ICRA has limited information on the entity's performance since the time it was last rated in February 2016, which was based on detailed information. As part of its process and in accordance with its rating agreement with SSE, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Wiintrack Exports was established in the year 2002 as a partnership firm and is engaged in the business of manufacturing of readymade garments. The Firm manufactures knitted and woven garments meant for overseas customers and mainly caters to European market. The Firm operates from its own factory located in Tirupur (Tamil Nadu). The Firm procures yarn from domestic market and the same in knitted into fabric. The firm has in-house knitting, printing and garment manufacturing capabilities while it outsources dyeing and embroidery processes to job workers. Mr. K Velusamy is the managing partner of the firm and has an experience of more than 15 years in the textile industry. ================= I N D O N E S I A ================= MNC INVESTAMA: S&P Raises ICR to 'B-', Outlook Stable ------------------------------------------------------ S&P Global Ratings raised its long-term issuer credit rating on PT MNC Investama Tbk. to 'B-' from 'D'. The outlook is stable. S&P said, "At the same time, we assigned our 'B-' long-term issue rating to the company's US$231 million 9% senior secured notes due 2021. We also subsequently raised the issue rating on the company's guaranteed US$365 million 5.875% senior secured notes due May 16, 2018, to 'B-' from 'D'." MNC Investama is an Indonesia-based holding company with sizable media interests and growing operations in financial services. The upgrade follows MNC Investama's completed exchange and successful placement of its US$231 million 9% senior secured notes. S&P also expects the company's US$115 million of subordinated debt to be converted into equity within the next few weeks after the debt exchange is finalized. The US$231 million secured notes are due 2021, and extend MNC Investama's debt maturity by three years. S&P said, "We do not envision a specific default scenario over the next 12-18 months. However, in our view, execution risks will remain because we believe the viability of the company's capital structure will depend on the management's ability and willingness to execute its strategic initiatives, in particular the sale of its coal operations and a stake in PT MNC Kapital Indonesia Tbk." S&P said, "The 'B-' issuer credit rating reflects our view of MNC Investama's aggressive management strategy, weak liquidity at the holding company level in the absence of asset and stake sales, and ongoing sensitivity of servicing the anticipated capital structure with dividends from operating companies, barring asset sales. We expect MNC Investama's liquidity at the holding company level, in the absence of asset sales, to be weak with dividend interest cover at 1.1x-1.3x over the next three years. With a three-year bond tenor, the viability of this capital structure also depends on management's ability to refinance again in the next 12-18 months or sell assets over the next three years. We believe these initiatives are crucial to supporting the holding company's liquidity and providing a path to ultimately repay the US$231 million senior secured notes due in 2021. S&P considers MNC Investama's management and governance to be weak, given the lack of prudent financial management and aggressive reinvestments in operating businesses despite recurring refinancing requirements. The management also places a priority on growth and shareholder returns, most notably through share buybacks at main cash-producing subsidiary PT Media Nusantara Citra Tbk. In addition, MNC Investama has shifted its strategic focus several times over the past few years, by first expanding beyond its core media operations into mining and financial services, two segments it is now seeking to partially divest. The rating also captures the significant currency mismatch risk as MNC Investama does not hedge its U.S. dollar-denominated debt and interest payments. S&P expects more than 50% of the company's debt will be denominated in U.S. dollar over the next two years while we project over 80% of EBITDA and cash flows to be in Indonesian rupiah, given the company's domestic operations. These weaknesses overshadow the otherwise good operational performance and achievements of MNC Investama's TV stations. S&P said, "Overall, we expect subsidiary PT Media Nusantara Citra Tbk. (MNCN) to maintain its leading position with about 40% revenue market share and about 6% revenue growth over the next two years. This will be largely driven by higher advertising rates from its premium positioning and continued success of its broadcast content. We expect MNCN to contribute around 90% of the dividends MNC Investama receives because we project flat to weaker revenue growth at PT MNC Sky Vision Tbk." S&P said, "The stable outlook reflects our view that the operational performance of MNC Investama's operating subsidiaries will remain solid over the next 12 months. In particular, we expect MNCN to generate sufficient positive free operating cash flows to be able to pay sufficient dividends to MNC Investama to service its cash interest payments. "We could lower the ratings if: MNC Investama's operations significantly deteriorate such that dividend and cash coverage of interest expense at the holding company falls below 1.0x; or MNC Investama fails to execute its planned stake and asset sales within 2019, resulting in rising refinancing risk on the 2021 bonds. "While unlikely, we could raise the ratings if: (1) MNC Investama completes its planned stake and asset sales and uses the proceeds to bolster liquidity or retire debt such that the dividend coverage of interest expense at the holding company is sustainably above 1.75x; and (2) the company substantially lengthens its debt maturity." ========= J A P A N ========= * JAPAN: Corporate Bankruptcies Hit 28-year Low in April -------------------------------------------------------- The Japan Times reports that the number of corporate bankruptcies in April hit a 28-year low for the month, a private credit research firm said on May 10. Tokyo Shoko Research Ltd. said the figure fell 4.4 percent from a year before to 650, the lowest level for the month of April since 1990 when the country was in the last stage of its bubble economy era, the Japan Times relates. April marked the first decline in two months in the number of business failures, the report discloses. The data covered bankruptcies involving liabilities of JPY10 million or more. Total liabilities left by failed companies dropped 8.3 percent to JPY95.4 billion, including some JPY6 billion left by women-only share-house operator Smart Days Inc, according to the report. The Japan Times says the number of bankruptcies decreased in seven sectors, including construction, transportation and retailing, while the figure increased in three sectors that included manufacturing. By region, the number of bankruptcies declined in Hokkaido, Hokuriku, Kanto and Chubu. The remaining five saw rises. Of the 47 prefectures, increases were reported by Miyagi, Fukushima, Hiroshima and 17 others. The number of bankruptcies related to labor shortages grew 36.3 percent to 30, the report adds. ==================== N E W Z E A L A N D ==================== CBL CORP: Administrators Recommend Liquidation ---------------------------------------------- Radio New Zealand reports that the voluntary administrators of the troubled insurance company, CBL Corporation, have recommended it be placed into liquidation. CBL's problems stem from doubts that it has sufficient financial resources to cover potential insurance claims, the report says. According to Radio NZ, the KordaMentha administrators have made the recommendation in a report to creditors, ahead of the watershed meeting to be held on May 18. The High Court in March gave them extra time to prepare the report and call the meeting, which will decide the future of the group, Radio NZ recalls. Radio NZ relates that the administrators said that liquidation would allow the liquidator to make further investigations into how the company got into trouble. The key subsidiary of CBL Corporation is an insurance business, which the Reserve Bank applied to put into liquidation in February. Radio NZ adds that the administrators said they were working with some directors of company on a proposal to restructure the group. "It is too early to assess the return to creditors or shareholders," the administrators, as cited by Radio NZ, said. They said it would be dependant on a number of factors including any restructuring proposal, "the sale processes currently underway for the group's business units, the outcomes of the CBLI and CBLIE insolvency processes" and "any potential legal actions that might be available," Radio NZ relays. "The Reserve Bank's application to liquidate CBLI is being opposed. The hearing is set down for 5 and 6 June 2018," the administrators said. About CBL Corp. Founded in 1973, CBL Corporation Limited (NZE: CBL), together with its subsidiaries, provides insurance and reinsurance products and services primarily in New Zealand. It offers financial risk products, builders' risks, sureties, guarantees, and contractor bonds primarily in Europe and Scandinavia; deposit guarantees in Australia; and bonding and fiduciary services to the Mexican commercial sector. The company also provides a range of specialty products, such as credit enhancement, surety bonds, specialized property insurance, aviation, and rural risk in Australia, as well as distributes construction-sector insurance products in France through a network of brokers. CBL Corp. went into voluntary administration in late February 2018, in a move to prevent other regulators from taking action after the Reserve Bank moved to have its subsidiary CBL Insurance placed in interim liquidation. On February 23, 2018, KordaMentha New Zealand partners Brendon Gibson and Neale Jackson were appointed Voluntary Administrators by the Board of CBL Corporation Ltd and certain of its subsidiaries. The administration relates to New Zealand-domiciled companies. Messrs. Gibson and Jackson are administrators to these CBL entities -- CBL Corporation Limited; LBC Holdings New Zealand Ltd; LBC Holdings Americas Ltd; LBC Holdings UK Ltd; LBC Holdings Europe Ltd; LBC Holdings Australasia Ltd; LBC Treasury Company Ltd; Deposit Power Ltd; South British Funding Ltd; and CBL Corporate Services Ltd. ================= S I N G A P O R E ================= VIKING OFFSHORE: Posts SGD2.1 Million Q1 Net Loss ------------------------------------------------- The Business Times reports that Viking Offshore and Marine logged a first-quarter net loss of SGD2.1 million, from a net loss of SGD2.8 million in the same period a year earlier. Revenue for the three months ended March 31 slid 24 per cent to SGD7.3 million, due to lower revenue recognized for chartering services, BT discloses. Revenue in the offshore and marine services segment as well as systems engineering projects remained at similar levels to previous years. Loss per share for the quarter was 19 Singapore cents, from 33 Singapore cents a year earlier, according to the report. Net asset value per share was six Singapore cents as at Mar 31, the same as on Dec. 31, 2017. According to the report, the company said the industry is showing signs of gradual recovery on the back of gradually rising oil prices. The group has seen an increase in customer enquiries and tender invitations in 2018. BT adds that the company said cash and liquidity remains a priority and it will continue to exercise spending discipline, aggressive receivables collection and cash conservation. In addition, an arbitration process against a charterer of land rigs in China has concluded in favor of the company, the report relays. Viking Offshore and Marine Limited -- https://www.vikingom.com/ -- engages in the design, manufacture, project management, and commissioning of heating, ventilation, air-conditioning, and refrigeration systems for the marine and offshore industries worldwide. It operates through Offshore and Marine, and Chartering Services segments. The company also supplies hydraulic winches and power packs, as well as deck machinery; and provides system integration services for telecommunications systems, fire and gas detection systems, and control and instrumentation systems. In Viking Offshore's annual report for the period ending Dec. 31, 2017, its auditor, Ernst & Young LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. The company reported net loss of SGD13,241,009 for the year ended Dec. 31, 2017, compared to SGD15,918,520 a year ago. ********* 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 ***