/raid1/www/Hosts/bankrupt/TCRAP_Public/180518.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, May 18, 2018, Vol. 21, No. 098
Headlines
A U S T R A L I A
ARNAGE HOLDINGS: Second Creditors' Meeting Set for May 24
ASIAN FOOD: First Creditors' Meeting Scheduled for May 24
CAPITAL MINING: Files for Voluntary Administration
DIAMOND OFFSHORE: Egan-Jones Hikes Senior Unsecured Ratings to BB
EDESSA PTY: Second Creditors' Meeting Set for May 24
FC 11: Sports Training Academy in Liquidation; Owes AUD5 million
GREEN MOOSE: First Creditors' Meeting Slated for May 28
MAC ENTERPRISES: Second Creditors' Meeting Set for May 25
MATCHBYTE CONSULTANTS: Second Creditors' Meeting Set for May 28
SM ENGINEERING: First Creditors' Meeting Set for May 24
WAREHOUSE1: Might Have Traded While Insolvent, Liquidators Say
C H I N A
FUTURE LAND: Fitch Rates USD300M Senior Notes 'BB'
I N D I A
ACE KUDALE: CRISIL Reaffirms B+ Rating on INR28.75MM Loan
ADVATECH CERA: CRISIL Migrates B+ Rating to Not Cooperating
BALAJI FIBER: Ind-Ra Hikes Long-Term Issuer Rating to 'BB+'
BALAJI INDUSTRIES: CRISIL Moves B+ Rating to Not Cooperating
BHADRASHREE STEEL: Ind-Ra Maintains BB+ Rating in Non-Cooperating
BHASKAR TEA: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
DOLLFINE DEVELOPERS: CRISIL Migrates B+ Rating to Not Cooperating
FORTUNE SPIRIT: Ind-Ra Maintains 'BB' Rating in Non-Cooperating
GALAXY GLASS: CRISIL Lowers Rating on INR5MM Cash Loan to B
GENERAL PETROCHEM: Ind-Ra Migrates BB- Rating to Non-Cooperating
GOKUL STEELS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
GOYAL RICE: Ind-Ra Maintains 'B' Issuer Rating in Non-Cooperating
GSR VENTURES: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable
HARYANA RICE: CRISIL Reaffirms B Rating on INR35MM Cash Loan
HERMAN PROPERTIES: Ind-Ra Migrates BB- Rating to Non-Cooperating
JAYPEE INFRATECH: Court Asks Jaiprakash to Deposit INR1,000cr
KAYTEE CORPORATION: Ind-Ra Maintains B+ Rating in Non-Cooperating
LUMBINI CONSTRUCTIONS: CRISIL Moves B- Rating to Not Cooperating
MAGADH INDUSTRIES: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
MAHESHWARI PHARMACEUTICALS: Ind-Ra Hikes Issuer Rating to 'BB-'
MANOJ KUMAR: CRISIL Moves B+ Rating to Not Cooperating Category
MICKEY METALS: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating
MM ENGINEERS: CRISIL Downgrades Rating on INR3MM Loan to D
MOTHERS AGRO: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
NEEL KANTH: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating
NR ISPAT: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
ONLINE PRINT: CRISIL Migrates B+ Rating to Not Cooperating
P.A.S. PETRO: CRISIL Hikes Rating on INR3.5MM Cash Loan to B+
POGGENAMP NAGARSHETH: Ind-Ra Assigns BB+ Rating to Term Loan
PRALHADRAO SALUNKHEPATIL: CRISIL Assigns B Rating to INR15MM Loan
PRIME URBAN: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
PRINCE SWR: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+'
R D FASHIONS: CRISIL Reaffirms B+ Rating on INR5.40MM Cash Loan
RPG INDUSTRIAL: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating
SARTHAV INFRA: CRISIL Migrates Rating on INR20MM LT Loan to B
SEVENHILLS HEALTHCARE: Insolvency Professional Seeks Buyers
SHIV SHAKTI: Ind-Ra Maintains B Issuer Rating in Non-Cooperating
SHUBH RICE: Ind-Ra Maintains B Issuer Rating in Non-Cooperating
SMART MOTORS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
SP ACCURE: CRISIL Migrates B Rating to Not Cooperating Category
SRINIVASA MURUGAN: CRISIL Moves B+ Rating to Non-Cooperating
SUNNY STAR: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating
SURYA FAB: Ind-Ra Migrates 'BB-' Issuer Rating to Non-Cooperating
UTTAM GALVA: Ind-Ra Affirms 'D' Issuer Rating in Non-Cooperating
VAIBHU INFRA: CRISIL Moves B+ Rating to Not Cooperating Category
VIBHU COAL: CRISIL Assigns B+ Rating to INR6.25MM Cash Loan
VIKAS COTEX: CRISIL Assigns B+ Rating to INR12.35MM Cash Loan
N E W Z E A L A N D
ORANGE H: Education Ministry has multiple claims vs. Firm
YARROWS BAKERY: Ex-Director Ordered to Pay NZ$277K in Legal Costs
- - - - -
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A U S T R A L I A
=================
ARNAGE HOLDINGS: Second Creditors' Meeting Set for May 24
---------------------------------------------------------
A second meeting of creditors in the proceedings of Arnage
Holdings Pty Ltd has been set for May 24, 2018, at 2:30 p.m. at
the offices of Worrells Solvency & Forensic Accountants,
Level 15, 114 William 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 23, 2018, at 5:00 p.m.
Con Kokkinos and Matthew Jess of Worrells Solvency were appointed
as administrators of Arnage Holdings on April 18, 2018.
ASIAN FOOD: First Creditors' Meeting Scheduled for May 24
---------------------------------------------------------
A first meeting of the creditors in the proceedings of
-- Asian Food Creations Pty Ltd;
-- Cafe Singapore Pty Ltd;
-- Little Hong Kong Pty Ltd;
-- Little Nyonya Pty Ltd; and
-- Little Singapore Pty Ltd
will be held at the offices of SV Partners, 22 Market Street, in
Brisbane, Queensland, on May 24, 2018, at 11:00 a.m.
Anne Meagher (email already reported) of SV Partners was
appointed as administrator of Asian Food Creations on May 14,
2018.
CAPITAL MINING: Files for Voluntary Administration
--------------------------------------------------
Stockhead reports that Capital Mining, the WA explorer that twice
tried cannabis and considered buying cloud-based learning
software, has filed for voluntary administration.
It has appointed Richard Albarran, Brent Kijurina and Cameron
Shaw from Hall Chadwick Chartered Accountants to manage the
business, the report says.
According to the report, Capital Mining was a gold and rare
earths explorer until about September 2014, when it began making
a rather diverse range of investments.
It tried and failed to buy 10 per cent of Chinese cloud-learning
platform HexStudy for AUD5.7 million in 2014, the report relates.
It then tried (and again failed) to buy a Canadian cannabis
grower, a US hemp company, and finally, Tasmanian business
Cannabinoid Extracts Australia, Stockhead says.
Stockhead relates that the company shelved those ideas in 2015
only for them to return last year - but not before they ran into
trouble with the ASX over directors fees.
Perth-based Capital spent only AUD175,000 on exploration while
AUD637,000 was paid for administration and corporate costs,
Stockhead discloses citing the company's June quarterly report.
Directors Peter Dykes, Peter Torney and Anthony Dunlop were paid
consultancy fees totalling AUD360,000, AUD480,000 and AUD120,000
respectively a year, the report notes.
Stockhead says Mr. Dykes and Mr. Dunlop were also directors of
Chapmans which was planning on investing in - not a mining
venture - but cannabis.
Capital had set up Capital Cannabis, its new marijuana arm.
In May "Capital also met with a number of other medicinal
cannabis companies in North America in relation to potential
investment opportunities for Capital subsidiary company, Capital
Cannabis, in the medicinal cannabis sector," the company, as
cited by Stockhead, said.
But that too fell over, with the company putting a full stop to
its cannabis aspirations in December.
After issuing a 21-page quarterly activities and cash flow report
in April, where it said it had given up six of 13 WA exploration
licences for nil consideration, and waving goodbye to Mr Torney
and chairman Robert Crossman in the last two weeks, the heart has
finally stopped beating, the report states.
Capital Mining still likely has part of the AUD375,000 in cash
remaining at the end of March, Stockhead adds.
Capital Mining Limited engages in the exploration of mineral
properties. The company holds interests in projects located in
New South Wales, including the Chakola gold and base metals
project; and the Mayfield gold, copper, and base metals project.
It also holds interests in lithium exploration projects located
in Western Australia comprising the Gascoyne project that include
Reynolds, Caroline Creek, and Yinnietharra projects; the
Ravensthorpe project; the Yalgoo North and South projects; and
the Wail Lithium project. In addition, the company holds interest
in the Borris, Ballon, and Tinahely lithium projects located in
the Republic of Ireland.
DIAMOND OFFSHORE: Egan-Jones Hikes Senior Unsecured Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company, on May 9, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt
issued by Diamond Offshore Drilling Inc. to BB from BB-.
Diamond Offshore Drilling, Inc. is an offshore drilling
contractor. The company is headquartered in Houston, Texas and
has major offices in Australia, Brazil, Mexico, Scotland,
Singapore and Norway.
EDESSA PTY: Second Creditors' Meeting Set for May 24
----------------------------------------------------
A second meeting of creditors in the proceedings of Edessa Pty.
Limited, trading as ACT Auto One, Auto One Belconnen, Auto One
Fyshwick and Auto One Tuggeranong, has been set for May 24, 2018,
at 10:00 a.m. at the offices of RSM Australia Partners, Equinox
Building 4, Level 2, 70 Kent Street, in Deakin, ACT.
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 24, 2018, at 9:45 a.m.
Jonathon Kingsley Colbran and Frank Lo Pilato of RSM Australia
Partners were appointed as administrators of Edessa Pty on
April 18, 2018.
FC 11: Sports Training Academy in Liquidation; Owes AUD5 million
----------------------------------------------------------------
Cameron Houston & Chris Vedelago at The Sydney Morning Herald
report that a sports training academy has collapsed with debts of
more than AUD5 million after running courses costing up to
AUD23,000 that qualified its students "for nothing".
FC 11, which billed itself as "Australia's leading sports
education provider" and had links to some of the nation's biggest
sporting clubs, also faces claims it traded while insolvent.
Sandra Williamson said her daughter, Georganna, attended an FC 11
course in Brisbane, but had been unable to find employment in the
field.
"When she finished, we found out that the diploma was not worth
the paper it was written on. We found that she was qualified for
nothing," the report quotes Ms. Williamson as saying. "Who would
have thought that the government would do loans for a course that
was such a rip-off."
SHM says the failure of FC 11 is the latest in a series of
financial disasters to beset the private training sector, which
has left thousands of students and staff in limbo over the past
few years.
With campuses in Melbourne, Sydney, Brisbane and Newcastle, FC 11
was placed into liquidation in February, leaving a trail of
financial destruction and just AUD4,945 in the bank, SMH
discloses.
According to SMH, Liquidator Cor Cordis confirmed in a recent
creditors report that it was investigating the company's
directors, Michael Katsaris and Miltiadis Sakkos, over possible
breaches of their fiduciary duties.
"Our preliminary view is that the company may have been
(insolvent) from around October 2016 and remained insolvent at
all times to the date of our appointment on 9 February 2018," the
report, as cited by SMH, stated.
SMH adds that liquidators are also expected to examine whether FC
11 transferred assets to an associated company, Agoge Education
Australia, which continues to offer courses in sports
administration and marketing.
SMH notes that the company shut down its website on May 15, but
had claimed that: "FC 11 in conjuction [sic] with Agoge Education
Australia deliver nationally accredited qualifications that
incorporate sports specific coaching, training [and] strength."
FC 11 forged relationships with some of the nation's biggest
sporting clubs and associations, which often gave access to
databases of players and supporters who were targeted with
marketing material, SMH says.
"FC 11 has received sanctioning from Football Federation
Victoria, Football NSW, Football Queensland, Northern Football
NSW, Football Brisbane, Capital Football, Netball Queensland,
Netball ACT, Hockey ACT, Cricket NSW, Sydney Thunder and Sydney
Sixers," its website claimed, SMH relays.
SMH says prominent rugby league figure and Penrith Panthers
general manager Phil Gould hailed a deal between the NRL club and
FC 11, which offered a diploma of sport development for rugby
league at Pepper Stadium in Penrith.
"The partnership between Panthers and FC 11 has been a wonderful
acquisition for our club, particularly for our young aspiring
professional players. Even if they don't make it as professional
players, they know there are avenues in the game, and in sport,
that they can aspire to," Mr. Gould said in 2015, SMH recalls.
But many of those relationships have soured, with Football
Federation Victoria, Football NSW and Football Queensland all
owed significant debts by FC 11, SMH states.
SMH says that one Brisbane-based creditor claimed the company was
under significant financial strain when it expanded into the
Queensland market in 2016.
"When I read the liquidator report I was shocked for two reasons.
Firstly, FC 11 came to Brisbane in 2016 and it is clear from the
liquidators report that they were under a financial cloud," the
creditor told Fairfax Media.
"Secondly, despite going into liquidation . . . they have started
up again under the same name. I hope ASIC throws the book at
them."
GREEN MOOSE: First Creditors' Meeting Slated for May 28
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Green
Moose Pty Ltd, trading as Woodside Hotel, will be held at the
offices of Worrells Solvency & Forensic Accountants, Suite 1103,
Level 11, 147 Pirie Street, in Adelaide, SA, on May 28, 2018, at
10:30 a.m.
Nicholas David Cooper and Dominic Charles Cantone of Worrells
Solvency were appointed as administrators of Green Moose on May
16, 2018.
MAC ENTERPRISES: Second Creditors' Meeting Set for May 25
---------------------------------------------------------
A second meeting of creditors in the proceedings of Mac
Enterprises (Vic) Pty Ltd has been set for May 25, 2018, at
11:00 a.m. at the offices of Romanis Cant, Level 2, 106 Hardware
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 24, 2018, at 4:00 p.m.
Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of Mac Enterprises on April 19, 2018.
MATCHBYTE CONSULTANTS: Second Creditors' Meeting Set for May 28
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Matchbyte
Consultants Pty Ltd has been set for May 28, 2018, at 1:00 p.m.
at the offices of Deloitte, 550 Bourke Street, in Melbourne,
Victoria, Australia.
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 27, 2018, at 4:00 p.m.
Robert Woods and Glen Kanevsky of Deloitte were appointed as
administrators of Matchbyte Consultants on April 26, 2018.
SM ENGINEERING: First Creditors' Meeting Set for May 24
-------------------------------------------------------
A first meeting of the creditors in the proceedings of SM
Engineering & Construction Services Pty Ltd will be held at the
offices of Veritas Advisory, L5, 123 Pitt Street, in Sydney, NSW,
on May 24, 2018, at 12:00 p.m.
David Iannuzzi and Vincent Pirina of Veritas Advisory were
appointed as administrators of SM Engineering on SM Engineering
on May 14, 2018.
WAREHOUSE1: Might Have Traded While Insolvent, Liquidators Say
--------------------------------------------------------------
CRN reports that liquidators for failed reseller Warehouse1 have
indicated that the company may have traded while insolvent as
early as seven months before its collapse.
According to CRN, Warehouse1 sank into liquidation in February
after four years of operating an online IT retail store and
brick-and-mortar location in Melbourne, appointing SV Partners to
handle the liquidation.
CRN relates that while SV Partners said its investigation was
still ongoing, there were a number of factors suggesting
insolvent trading, including balance sheets that recorded net
asset deficiencies as early as July 2017, and negative working
capital and liquidity ratios.
Warehouse1 started incurring trading losses from the start of
2017, if not earlier. According to the liquidators, 52 percent of
the company's payables were outstanding for more than 60 days by
October 2017, CRN says.
"We however note that our investigations are ongoing and should
any further offences be identified, they will be included in any
report to ASIC," the liquidator, as cited by CRN, said in its
report to creditors. "We are of the view that the company may
have traded whilst insolvent from July 2017, if not earlier."
CRN says the liquidators investigation also unveiled that eight
creditors may have received preferential payments close to AUD4
million, though SV Partners is yet to undertake a formal review.
According to CRN, the creditors report identified a number of
factors leading to Warehouse1's insolvency. Chief among those
being ongoing problems with the company's internal software
platform which hindered its website speed and marketing. In
addition, payment intermediaries caused refunds to occur without
Warehouse1's consent, CRN adds.
Warehouse1's director also blamed factors like an unexpected drop
in sales, heightened competition and preferential pricing given
to competitors.
The report revealed that Warehouse1's unsecured debts totalled
AUD3.6 million, and one secured creditor, Commonwealth Bank, was
owed AUD468,000, CRN relays.
A number of Australia's largest distributors were listed as
creditors, including AUD1.7 million owed to Ingram Micro,
AUD475,000 to Dicker Data, AUD235,000 to Alloys, and smaller
debts to Synnex, Bluechip Infotech, Dynamic Supplies, Leader
Computers and MMT.
SV Partners ran a campaign to sell the company's remaining stock,
which was sold to an unnamed buyer for AUD127,000. Distributors
with security interests relating to retention over stock were
given the opportunity to recover stock from Warehouse1. Dicker
Data recovered AUD239,000 in stock, while Ingram Micro, Synnex,
Bluechip, MMT and Dynamic Supplies are yet to identify their
stock, CRN says.
Warehouse1 still owes AUD713,000 in refunds to 821 customers,
though SV Partners previously confirmed to CRN that those
customers would not receive refunds for products they paid for
but did not receive. Instead, the liquidator suggested customers
contact their credit card company to dispute the transaction.
The next meeting of creditors is scheduled for May 31 in
Melbourne, where creditors will consider approving the
liquidator's remuneration and appoint a committee of inspection,
CRN adds.
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C H I N A
=========
FUTURE LAND: Fitch Rates USD300M Senior Notes 'BB'
--------------------------------------------------
Fitch Ratings has assigned Future Land Holdings Co., Ltd.'s (FLH,
BB/Stable) USD300 million 7.125% senior notes due 2021 issued by
FLH's indirect wholly owned subsidiary, New Metro Global Limited,
a final rating of 'BB'.
The notes, which are unconditionally and irrevocably guaranteed
by FLH, are rated at the same level as FLH's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. The assignment of the final rating follows the
receipt of documents conforming to information already received.
The final rating is in line with the expected rating assigned on
May 14, 2018.
FLH is a subsidiary of Future Land Development Holdings Limited
(FLDH, BB/Stable). Fitch uses a consolidated approach to rate
FLH, based on Fitch's Parent and Subsidiary Rating Linkage
criteria. The strong strategic and operational ties between the
two entities are reflected by FLH representing FLDH's entire
exposure to the China homebuilding business.
KEY RATING DRIVERS
Focus on Yangtze River Delta: The group's strategy to focus
resources around Shanghai and the Yangtze River Delta, a wealthy
region in eastern China, helped expand its scale and drive strong
sales turnover, as measured by contracted sales/gross debt, to
1.9x in 2017 with an average of 1.7x since 2014. This
demonstrates the group's ability to rapidly generate sales from
new land acquisitions. The fast-churn strategy has enabled FLH to
tap the strong demand in the Yangtze River Delta to achieve
higher contracted sales growth than peers.
The group recorded exceptionally strong presales in 2017, driven
by robust demand and higher average selling prices (ASP) in the
Yangtze River Delta, which accounted for about 80% of contracted
sales. Consolidated gross floor area (GFA) sold in 2017 increased
by 59% to 7.5 million square metres (sq m) and the ASP increased
by 24% yoy to CNY12,527/sq m. Fitch expects the group to achieve
annual consolidated contracted sales of CNY130 billion-160
billion in 2018-2019.
Lower Leverage: Group leverage dropped to 40% at end-2017, from
45% at end-2016, following prudent land acquisitions. Full-year
attributable cash outflow from land premiums reached CNY53
billion, representing 56% of consolidated presales of CNY95
billion (excluding presales from joint ventures). The group has
been sourcing joint-venture partners to share land acquisition
costs.
Improving Land Bank Quality: FLH had land bank of about 50
million sq m (excluding joint ventures) at end-2017, sufficient
for four to five years of development activity. The group has
diversified its land bank by reducing the proportion of land in
the Yangtze River Delta to around 56% and expanding into the
Pearl River Delta region in southern China, central and western
China as well as the Bohai Economic Rim in northern China.
Margin Expansion: The group's EBITDA margin (after adding back
capitalised interest to cost of goods sold) improved to 27.8% in
2017, from 17.5% in 2016. Land premium costs for its land bank
averaged CNY2,905/sq m, which is reasonable compared with the
consolidated ASP of contracted sales of CNY12,527/sq m in 2017.
Fitch expects the group's margin to stay at around 25% in the
next two years, as the ASP for contracted sales increases and the
company's scale expands.
Rising Recurring Income: The group aims to double its rental
revenue to CNY2 billion in 2018 from the operation of shopping
malls (Wuyue Plaza), which are mainly located in tier 2 and 3
cities. Fitch estimates the group's ratio of recurring
EBITDA/interest expense will remain insignificant at 0.2x in
2018-2019, as the revenue contribution of investment properties
will remain small relative to development properties and have a
limited effect on its rating.
DERIVATION SUMMARY
Fitch uses a consolidated approach to rate FLH, based on its
Parent and Subsidiary Rating Linkage criteria, as the company was
67.81%-owned by FLDH as at end-2017. The strong strategic and
operational ties between the two entities are reflected by FLH
representing FLDH's entire exposure to the China homebuilding
business, while FLDH raises offshore capital to fund the group's
business expansion. The two entities share the same chairman.
The group improved its leverage to below 40%, as defined by net
debt/adjusted inventory, through prudent land bank acquisitions
in 2017 to fall in line with 'BB' peers. Its quick-sales churn
strategy and geographically well-diversified land bank
contributed to its faster expansion in contracted sales than most
'BB' peers. Its recognised EBITDA margin (excluding capitalised
interest) improved to above 25% in 2017, from 18% in 2016, as its
land cost accounted for only 29% of revenue in 2017. The margin
improvement is likely to be sustained, as the average cost of its
land bank accounted for only 23% of contracted ASP in 2017.
The group has a larger contracted sales scale and faster sales
churn than most of its 'BB' peers, and its leverage is comparable
with peers. The group and CIFI Holdings (Group) Co. Ltd.
(BB/Stable) started their homebuilding business in Zhejiang
province and expanded nationwide. The group has larger contracted
sales scale and faster sales churn than CIFI, while the two
entities' margins are comparable. CIFI has maintained a high
EBITDA margin and lower leverage for a longer period than the
group, and has been disciplined in maintaining stable leverage.
The group has a larger scale, with a more diversified land bank
throughout the nation and faster sales churn than 'BB-' peers,
such as China Aoyuan Property Group Limited (BB-/Stable), KWG
Property Holding Limited (BB-/Stable) and Logan Property Holdings
Company Limited (BB-/Stable).
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Contracted sales to increase by 40% in 2018, 20% in 2019
and 20% in 2020 (97% in 2017)
- EBITDA margins (after adding back capitalised interest) to
be maintained at about 25% in 2018-2020
- Total land premium to represent 40%-50% of contracted sales
in 2018-2020
- FLDH to maintain a controlling shareholding in FLH and the
operational ties between FLDH and FLH do not weaken
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Consolidated net debt/adjusted inventory sustained below 35%
while maintaining the EBITDA margin at 20% or above
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Contracted sales/total debt below 1.5x for a sustained period
- Consolidated net debt/adjusted inventory above 45% for a
sustained period
- EBITDA margin below 18% for a sustained period
All ratios mentioned above are based on the parent's consolidated
financial data.
LIQUIDITY
Sufficient Liquidity: The group had an unrestricted cash balance
of CNY20.5 billion and unutilised credit facilities of CNY54.6
billion to cover short-term borrowings of CNY15.3 billion as at
end-2017.
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I N D I A
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ACE KUDALE: CRISIL Reaffirms B+ Rating on INR28.75MM Loan
---------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of Ace
Kudale Car Private Limited (AKCPL) at 'CRISIL B+/Stable/CRISIL
A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Reaffirmed)
Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed)
Inventory Funding
Facility 28.75 CRISIL B+/Stable (Reaffirmed)
Loan Against
Property 1.94 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 24.28 CRISIL B+/Stable (Reaffirmed)
Term Loan 3.53 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the company's average financial
risk profile, low bargaining power with principals, and exposure
to intense competition leading to low operating margins. These
weaknesses are partially offset by promoters' extensive
experience and established position in the automotive dealership
business.
Key Rating Drivers & Detailed Description
Weaknesses
* Average financial risk profile: Despite moderate networth at
INR19..35 crore, total outside liabilities to tangible networth
ratio remain high at 2.70 times, as on March 31, 2017 and is
estimated at INR 19.42 crore and 2.62 times respectively as on
March 31, 2018. Debt protection metrics were muted, with interest
coverage and net cash accrual to total debt ratios of 1.6 times
and 0.07 time, respectively, for fiscal 2017 and estimated at
1.51 times and 0.07 times for fiscal 2018.
* Low bargaining power with principals and exposure to intense
competition: Limited bargaining power with Maruti Suzuki India
Ltd (MSIL) and Suzuki Motorcycle India Ltd (SMIL) because of
their strong market positions constrains AKCPL's operating
profitability. Furthermore, the company has to compete with other
dealers of MSIL and SMIL as well as those of other automobile
manufacturers.
Strengths
* Established position in the automotive dealership business in
Pune: AKCPL has a strong position in Pune's automotive dealership
market, supported by healthy relationship with MSIL and SMIL.
Over the years, promoters have expanded operations and currently
have one (3S) showroom of MSIL and SMIL each and 7 sales outlets
in Pune.
Outlook: Stable
CRISIL believes AKCPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if ramp up in scale and profitability leads to higher
cash accrual and strong liquidity. The outlook may be revised to
'Negative' if sharp decline in revenue and profitability results
in low cash accrual, or if liquidity weakens because of large,
debt-funded capital expenditure.
Incorporated in 2007 and promoted by Kudale family, AKCPL began
operations in 2010 with dealership for MSIL's vehicles. The
company, for MSIL, has one owned showroom-cum-workshop at Manjri
on the Pune-Solapur highway, and a workshop on rented premises at
Bhosari, on the Pune-Nashik highway. It also ventured into SMIL
dealership from fiscal 2017. It operates one (3S) showroom of
MSIL and SMIL each and total of 7 sales outlets in Pune.
ADVATECH CERA: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with Advatech Cera
Tiles Limited (ACTL) for obtaining information through letters
and emails dated March 26, 2018, 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
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 12.5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 9.2 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 3.97 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Working Capital 2.33 CRISIL B+/Stable (Issuer Not
Term Loan Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Advatech Cera Tiles Limited,
which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Advatech Cera Tiles 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 ratings on bank
facilities of Advatech Cera Tiles Limited to CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
ACTL, incorporated in 2004, is based in Mehsana (Gujarat). It is
promoted by Mr. B T Patel, Mr. Jagdish Rawal, and Mr. Baldeo
Rawal. The company manufactures glazed porcelain floor tiles and
glazed vitrified tiles.ACTL, incorporated in 2004, is based in
Mehsana (Gujarat). It is promoted by Mr. B T Patel, Mr. Jagdish
Rawal, and Mr. Baldeo Rawal. The company manufactures glazed
porcelain floor tiles and glazed vitrified tiles.
BALAJI FIBER: Ind-Ra Hikes Long-Term Issuer Rating to 'BB+'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Balaji Fiber
Reinforce Private Limited's (BFRPL) Long-Term Issuer Rating to
'IND BB+' from 'IND BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR100 mil. (reduced from INR120 mil.) Fund-based limits
upgraded with IND BB+/Stable rating;
-- INR200 mil. (increased from INR160 mil.) Non-fund-based
limits affirmed with IND A4+ rating;
-- INR80 mil. Proposed fund-based limits* upgraded with
Provisional IND BB+/Stable rating; and
-- INR70 mil. (reduced from INR90 mil.) Proposed non-fund-based
limits* affirmed with Provisional IND A4+ rating.
* The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by BFRPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The upgrade reflects a significant improvement in BFRPL's scale
of operations and credit metrics in FY18, driven by increased
demand of glass fiber reinforced plastics/ fiberglass reinforced
plastic pipes. However, the financial and credit profiles remain
moderate due to stiff competition.
According to provisional financials for FY18, revenue was
INR1,066 million (FY17: INR291 million; FY16: INR437 million),
gross interest coverage (EBITDA/gross interest) was 1.9x (1.2x;
1.3x), net financial leverage (net debt/EBITDA) was 5.4x (7.1x;
5.0x), operating EBITDA margin was 9% (27.1%; 18.8%) and
debt/equity ratio was 2.17x (3.49x; 2.61x). The increase in
revenue was due to increased inflow of orders and timely
execution of the same. Meanwhile, the significant decline in
EBITDA margin was due to a sharp rise in the costs of raw
materials. The improvement in metrics is attributed to the equity
infusion and security premium of INR50 million in FY18.
The ratings also reflect BFRPL's moderate liquidity profile,
indicated by almost 88.06% average working capital limit
utilization during the 12 months ended April 2017.
The ratings however benefit from the founder's rich experience of
more than five decades in the production of glassfibre reinforced
plastics/ fiberglass reinforced plastic pipes, and BFRPL's order
book of INR5,463.1 million, which provides long-term revenue
visibility.
RATING SENSITIVITIES
Positive: An improvement in the overall credit profile and debt
equity position on a sustained basis could be positive for the
ratings.
Negative: Any deterioration in liquidity profile could be
negative for the ratings.
COMPANY PROFILE
BFRPL was formed in 1963 by Mr. Shantilal D Patel. It is an ISO
9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified company,
engaged in manufacturing various types of GRP/FRP pipes,
equipment and components used for water, oil and gas, and other
supply, and sewage treatment activity.
BALAJI INDUSTRIES: CRISIL Moves B+ Rating to Not Cooperating
------------------------------------------------------------
CRISIL has been consistently following up with Balaji Industries
- Chhindwara (BI) for obtaining information through letters and
emails dated March 13, 2018, 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 4.9 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 1.6 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 Balaji Industries -
Chhindwara, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Balaji Industries - Chhindwara 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 Balaji Industries - Chhindwara to CRISIL B+/Stable
Issuer not cooperating'.
Set up in 2002, BI is a proprietorship firm that trades in maize,
wheat and a variety of pulses in India. Operations are managed by
the Mr. Uttam Shah.
BHADRASHREE STEEL: Ind-Ra Maintains BB+ Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Bhadrashree
Steel & Power Limited's (BSPL) 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 BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR122 mil. Fund-based limit maintained in Non-Cooperating
Category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR5.10 mil. Term loan maintained in Non-Cooperating Category
with IND BB+ (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
Incorporated in 2004, BSPL manufactures sponge iron and trades
coal, mild steel sections and iron ore. Its manufacturing plant,
located in Kopal, Karnataka, has a total installed capacity of
60,000 tons per annum.
BHASKAR TEA: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Bhaskar Tea &
Industries Private Limited's (BTIL) Long-Term Issuer Rating to
'IND D' from 'IND B- (ISSUER NOT COOPERATING)'.
The instruments-wise rating action is:
-- INR54 mil. Fund-based limit (Long-term) downgraded with IND D
rating; and
-- INR0.7 mil. Non-fund-based limit (Short-term) downgraded with
IND D rating.
KEY RATING DRIVERS
The downgrade reflects BTIL's delays in debt servicing during
March 2018 due to a tight liquidity position, resulting from
overutilization of its working capital limits for more than 30
days.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months
would be positive for the ratings.
COMPANY PROFILE
Incorporated in 1938, BTIL is engaged in tea processing. The
company has its registered office in Kolkata, West Bengal and is
managed by Mr. Mohta. It was converted into a private limited
company from a limited company in March 2016.
DOLLFINE DEVELOPERS: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL has been consistently following up with DollFine
Developers (DD) for obtaining information through letters and
emails dated March 13, 2018, 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
---------- --------- -------
Proposed Long Term 15 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating
Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DollFine Developers, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
DollFine 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 rating on bank
facility of DollFine Developers to CRISIL B+/Stable Issuer not
cooperating'.
Set up as a partnership entity, DD is involved in the
construction and sale of residential apartments in Hyderabad. The
firm is promoted by Mr. G. Babu Rao along with his friends and
family.
FORTUNE SPIRIT: Ind-Ra Maintains 'BB' Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Fortune Spirit
Limited'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 BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR150 mil. Fund-based working capital limits maintained in
non-cooperating category with IND BB (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 4, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Fortune Spirit was incorporated in 2007 for processing Indian
made foreign liquor.
GALAXY GLASS: CRISIL Lowers Rating on INR5MM Cash Loan to B
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Galaxy Glass Products Private Limited (GGPPL) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable', and reaffirmed its 'CRISIL A4'
rating on the short-term facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects CRISIL's belief that the company's
operating performance will continue to remain weak over the
medium term due to modest scale and weak profitability.
Deterioration in the business risk profile of the company due to
reduction in sales and continued low margins in fiscal 2017 and
2018, has led to stretched liquidity and eroded net worth,
weakening the financial risk profile.
Revenue is expected to be around INR18 crore in fiscal 2018 as
compared to 21.1 Crores in fiscal 2017 due to maintenance
shutdown of plant for two months. Capital structure continues to
be highly leveraged due to erosion of networth on account of
continued losses.
The ratings continue to reflect modest scale of operations and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of the promoter in the glass
processing industry.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations: Scale is modest, with revenue of
INR21 crore in fiscal 2017. The company is one of numerous
players in the glass processing industry, and competition limits
its pricing flexibility and bargaining power.
* Below-average financial risk profile: GGPPL has a low capital
base because of accumulated losses and weak debt protection
metrics.
Strengths
* Extensive experience of promoter in the glass processing
industry: The promoter Mr. Omanakuttan has been associated with
the glass industry for over 35 years and has developed a strong
sourcing network.
Outlook: Stable
CRISIL believes GGPPL will continue to benefit from its
promoter's extensive experience. The outlook may be revised to
'Positive' if significant increase in revenue and operating
profitability, or improvement in working capital management
strengthens the financial risk profile. The outlook may be
revised to 'Negative' if cash accrual declines or working capital
requirement increases, resulting in deterioration in the
financial risk profile.
Established in 2005 in Chennai by Mr. Omanakuttan, GGPPL
manufactures toughened and double-glazed unit glass.
GENERAL PETROCHEM: Ind-Ra Migrates BB- Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated General
Petrochemicals Limited's (GPL) 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:
-- INR206.24 mil. Term loan due on July 2027 migrated to Non-
Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR80.00 mil. Fund-based limit migrated to Non-Cooperating
Category with IND BB- (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 1995, GPL manufactures greige fabric in Surat,
Gujarat, on a job work basis.
GOKUL STEELS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Gokul Steels
Private Limited's (GSPL) Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR42.4 mil. Fund-based limits migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR64.5 mil. Term loans due on July 31, 2020 migrated to Non-
Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 5, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Founded in May 2014 by Mr. Vivek Kasera, GSPL manufactures
angles, flats, bars, rounds and other structural steel items.
GOYAL RICE: Ind-Ra Maintains 'B' Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Goyal Rice
Mills' (GRM) 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 actions are:
-- INR50 mil. Fund-based working capital limits maintained in
Non-Cooperating Category with IND B (ISSUER NOT COOPERATING)
/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR16.50 mil. Term loan maintained in Non-Cooperating
Category with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 13, 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 2008 as a partnership firm, GRM is engaged in
rice milling and sorting. The entity has a facility in Moonak
(Punjab).
GSR VENTURES: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned GSR Ventures
Private Limited (GSR) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limits assigned with
IND BB/Stable/IND A4+ rating; and
-- INR350 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect GSR's medium scale of operations. According
to FY18 provisional financials, revenue fell to INR465.6 million
(FY17: INR547.6 million, FY16: INR486.9 million) due to delays in
the execution of a project in Assam due to heavy rains. The
ratings also reflect the company's modest credit metrics due to
high debt levels and low EBITDA margin. Net financial leverage
increased (adjusted net debt/operating EBITDA) to 3.7x in FY18
(FY17: 1.2x, FY16: negative 3.7x) due to an increase debt to
INR90.7 million (INR43.2 million; INR32.3 million). However,
EBITDA interest coverage (operating EBITDA/gross interest
expense) remained stable at 3.8x in FY18 (FY17: 3.6x, FY16: 6x),
despite the increase in the debt, as the unsecured loans were
interest free. The negative leverage in FY16 was due to lower
utilization of debt and a high cash and bank balance.
The ratings, however, are supported by GSR's healthy order book
position. As of April 2018, it had an unexecuted order book of
INR6,367.4 million (13.67x of FY18 revenue) for execution in the
next two years, giving medium-term revenue visibility.
The ratings are also supported by GSR's comfortable liquidity
position, indicated by it's around 79.5% on average use of the
fund-based facilities over the 12 months ended March 2018. Its
net working capital cycle was also short in the range of 36-73
days over FY14-FY18 on account timely work execution and receipt
of receivable.
Moreover, GSR's promoters have a track record of more than four
decades in civil construction and the company executes projects
across various fields, such as water supply schemes, engineering,
procurement, and construction. It undertakes projects for
government, semi-government, private and co-operative sectors in
Assam, Andhra Pradesh and Telangana state as a Class I unlimited
contractor.
RATING SENSITIVITIES
Negative: A decline in the revenue and/or the profitability
resulting in deterioration in the credit metrics on a sustained
basis will lead to a negative rating action.
Positive: A substantial rise in the revenue and the profitability
leading to an improvement in the credit metrics on a sustained
basis will lead to a positive rating action.
COMPANY PROFILE
GSR was set up as a partnership firm in 1971 by Mr. G. Sivakumar
Reddy and his family members, and was reconstituted as a private
limited company in 2008. It undertakes civil construction, mainly
canal earthwork excavation and construction of bridges. The
company is based in Hyderabad.
HARYANA RICE: CRISIL Reaffirms B Rating on INR35MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-
term bank facility of Haryana Rice Mills (HRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect HRM's weak financial risk
profile, vulnerability to fluctuations in raw material prices,
high dependence on monsoon, and susceptibility to regulatory
changes. These weaknesses are partially offset by the experience
of the partners in the basmati rice industry, and moderate scale
of operations.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile: Gearing rose to 29.54 times as on
March 31, 2017, from 22.22 times a year ago, while interest
coverage ratio dropped to 1.08 times in fiscal 2017 from 1.1
times in fiscal 2016 due to large working capital debt and modest
networth (INR1.43 crore as on March 31, 2017). Gross current
assets increased to 242 days as on March 31, 2017, from 174 days
a year ago.
* Vulnerability to fluctuations in raw material prices: Operating
margin (2.5-4.1% over the four fiscals through 2017) is expected
to remain exposed to fluctuations in raw material prices.
* High dependence on monsoon and susceptibility to changes in
government policies: Cultivation of basmati rice requires
substantial water, and though the rice-growing states have good
irrigation systems, they remain dependent on the monsoon.
Furthermore, the firm is susceptible to changes in government
policies regarding export of rice.
Strengths
* Experience of partners: Benefits from the partners' experience
of over three decades, their strong understanding of the local
market dynamics, and healthy relations with customers and
suppliers should continue to support the business.
* Moderate scale of operations: Revenue is estimated to have
grown to around INR138 crore in fiscal 2018 from INR105.95 crore
in fiscal 2017 and is further expected to improve over the medium
term due to addition of new customers and established
relationship with existing customers.
Outlook: Stable
CRISIL will continue to benefit over the medium term from the
experience of the partners. The outlook may be revised to
'Positive' if sizeable cash accrual or substantial fund infusion
strengthens capital structure. Conversely, the outlook may be
revised to 'Negative' if capital structure weakens due to steep
decline in rice realisations that fade profitability.
Set up in 1985 as a partnership firm by the Lal family of
Haryana, HRM mills and sorts basmati rice in Karnal (Haryana).
HERMAN PROPERTIES: Ind-Ra Migrates BB- Rating to Non-Cooperating
----------------------------------------------------------------
Ratings and Research (Ind-Ra) has migrated Herman Properties
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 these ratings. The rating
will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR150 mil. Term loan due on June 2020 migrated to Non-
Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR50 mil. Fund-based limits migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 13, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1986, HPPL is engaged in real estate development.
The company has its registered office in New Delhi.
JAYPEE INFRATECH: Court Asks Jaiprakash to Deposit INR1,000cr
-------------------------------------------------------------
Arpan Chaturvedi at BloombergQuint reports that the Supreme Court
on May 16 directed Jaiprakash Associates Ltd. to deposit INR1,000
crore by June 15 to provide refunds to homebuyers of debt-ridden
Jaypee Infratech Ltd.
BloombergQuint relates that the top court said there will be a
stay on liquidation proceedings against its subsidiary Jaypee
Infratech subject to the deposit of the money. Statutory
proceedings will start against the company if it fails to deposit
this money as per the court's directions, a bench headed by Chief
Justice of India Justice Dipak Misra said, BloombergQuint relays.
About 32,000 stranded homebuyers had challenged the insolvency
proceedings against Jaypee Infratech, fearing they will lose
their apartments and not get any compensation, according to
BloombergQuint. Homebuyers were worried that any resolution under
the Insolvency & Bankruptcy Code would give lenders preference in
repayment.
The top court had on Sept. 4 stayed insolvency proceedings
against the real estate firm at the National Company Law Tribunal
but later allowed the proceedings to resume, the report recalls.
The court had directed the resolution professional to come up
with a plan with the interests of the homebuyers in mind.
It also directed Jaypee Infratech's parent company, Jaiprakash
Associates to deposit INR2,000 crore to protect the interests of
the homebuyers, allowing the sum to be paid in installments. The
company has deposited INR750 crore so far, BloombergQuint
discloses.
In the hearing, lawyers of Jaiprakash Associates also informed
the court of Jaypee Group's INR10,000 crore offer to pay all dues
of lenders and complete stuck housing projects as part of plans
to bring Jaypee Infratech out of bankruptcy, BloombergQuint
relates. The top court has not passed any order on the plea, the
report notes.
About Jaypee Infratech
Jaypee Infratech Limited (JIL) is engaged in the real estate
development. The Company's business segments include Yamuna
Expressway Project and Healthcare. The Company's Yamuna
Expressway Project is an integrated project, which inter alia
includes construction of 165 kilometers long six lane access
controlled expressway from Noida to Agra with provision for
expansion to eight lane with service roads and associated
structures on build, own, operate and transfer basis. The Company
provides operation and maintenance of Yamuna Expressway for over
36 years, collection of toll and the rights for development of
approximately 25 million square meters of land for residential,
commercial, institutional, amusement and industrial purposes at
over five land parcels along the expressway. The Healthcare
business segment includes hospitals. The Company has commenced
development of its Land Parcel-1 at Noida, Land Parcel-3 at
Mirzapur and Land Parcel-5 at Agra.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
15, 2017, Moneycontrol said the Allahabad bench of the National
Company Law Tribunal on Aug. 9 accepted lender IDBI Bank's plea
and classified Jaypee Infratech as an insolvent company. With
this, the board of directors of the company remains suspended.
The NCLT had appointed Anuj Jain as Interim Resolution
Professional (IRP) to manage the company's business. The IRP had
invited bids from investors interested in acquiring Jaypee
Infratech and completing the stuck real estate projects in Noida
and Greater Noida.
KAYTEE CORPORATION: Ind-Ra Maintains B+ Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kaytee
Corporation Private Limited's (KCPL) 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 actions are:
-- INR222 mil. Fund-based working capital limit maintained in
Non-Cooperating Category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR10 mil. Non-fund-based working capital limit maintained in
Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR25 mil. Term loan maintained in Non-Cooperating Category
with IND B+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 8, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
KCPL was established in 1944 as a trading concern with interests
in cotton and yarns. It started manufacturing garments in 1974.
It was registered as a private limited company in June 1994. At
present, it is dealing in yarn, fabrics (trading) and garments
(manufacturing).
LUMBINI CONSTRUCTIONS: CRISIL Moves B- Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has been consistently following up with Lumbini
Constructions Limited (LCL) for obtaining information through
letters and emails dated March 21, 2018, 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
---------- --------- -------
Overdraft 20 CRISIL B-/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Lumbini Constructions Limited,
which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Lumbini Constructions 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
facility of Lumbini Constructions Limited to CRISIL B-/Stable
Issuer not cooperating'.
Set up in 1987 as a partnership firm, LCL (formerly, Lumbini
Constructions) was reconstituted as a closely-held public limited
company in 2001. The company is engaged in developing
residential and commercial projects.
MAGADH INDUSTRIES: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Magadh
Industries Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR1,110 bil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating;
-- INR200 mil. Long-term loan due on March 2021 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR410 mil. Proposed fund-based working capital limits
migrated to non-cooperating category with Provisional IND BB
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 18, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Magadh Industries is a Patna-based rolling mill manufacturing
company.
MAHESHWARI PHARMACEUTICALS: Ind-Ra Hikes Issuer Rating to 'BB-'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Maheshwari
Pharmaceuticals (India) Limited's Long-Term Issuer Rating to 'IND
BB-' from 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR56.00 mil. Fund-based limit upgraded with IND BB-
/Stable/IND A4+ rating; and
-- INR5.00 mil. (reduced from INR5.11 mil.) Term loans due on
March 2020 upgraded with IND BB-/Stable rating.
KEY RATING DRIVERS
The upgrade reflects a rise in MPIL's revenue and credit metrics
in FY18 (provisional financials) and Ind-Ra's expectations of
further improvement in these in the short term. The scale of
operations continued to be small and the credit metrics continued
to be weak. Its revenue increased 25.00% to INR278.00 million in
FY18, driven by higher demand and product portfolio expansion.
The management expects to register INR350 million in revenue for
FY19 on account of its entry into new geographies. The EBITDA
margin marginally rose to 7.09% in FY18 from 6.75% in FY17 on
account of a decline in manufacturing cost.
Furthermore, in FY18, MPIL's gross interest coverage improved to
1.93x (FY17: 1.44x) and net financial leverage (total adjusted
net debt/operating EBITDAR) enhanced to 4.37x (FY17: 6.38x). The
improvement in the credit metrics in FY18 was primarily driven by
a reduction in the debt due to the repayment of the long-term
loans. Ind-Ra expects MPIL's credit metrics to improve in the
short term in view of a rise in EBITDA backed by revenue growth.
The ratings continue to be supported by the promoter's experience
of about four decades in the Ayurvedic medicine industry.
The ratings, however, remain constrained by MPIL's tight
liquidity, indicated by an average utilization of about 99.00% of
its fund-based limits for the 12 months ended April 2018.
RATING SENSITIVITIES
Negative: Any significant decline in the overall credit metrics
on a sustained basis would lead to a negative rating action.
Positive: An improvement in the overall credit metrics, along
with a substantial increase in the revenue, on a sustained basis
will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2002, MPIL manufactures Ayurvedic medicines in
Sidcul, Haridwar.
MANOJ KUMAR: CRISIL Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has been consistently following up with Manoj Kumar Kedia
(MKK) for obtaining information through letters and emails dated
March 26, 2018, 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
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 1 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 Manoj Kumar Kedia, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Manoj Kumar Kedia 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 Manoj Kumar Kedia to CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
MKK is a Raigarh-based partnership firm; it has been undertaking
the construction of roads and bridges for the Chhattisgarh Public
Works Department since 2014.
MICKEY METALS: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Micky Metals
Limited's (MML) 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 BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limit maintained at
Non-Cooperating Category with IND BB+ (ISSUER NOT
COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 2, 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 1995, MML manufactures and supplies various sizes
and grades of metallic thermo-mechanically treated bars, rounds,
angles, channels, joists and flats. Its manufacturing facility is
located in Birbhum, West Bengal. The company is managed by Mr.
Sumit Agarwal, Mr. Sarwan Agarwal and Mr. Nagendra Agarwal.
MM ENGINEERS: CRISIL Downgrades Rating on INR3MM Loan to D
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of MM
Engineers Private Limited (MMEPL) to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 3.0 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of Credit 2.5 CRISIL D (Downgraded from
'CRISIL A4')
The downgrade of rating reflects its delays in debt servicing due
to weak liquidity. Weak liquidity is due to stretch in
receivables.
The ratings also reflect the company's large working capital
requirement. This rating weakness is partially offset by the
extensive industry experience of its promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Working Capital Intensive Operations: The working capital
requirements remain high with gross current assets of 253 days
for 2016-17 as against 163 days for 2015-16. The working capital
cycle was primarily driven by receivables of around 151 days and
inventory of 77 days.
Strength
* Extensive experience of promoters: Benefits from the four
decade-long experience of the partners, their established
relationships with customers and local suppliers, and keen grasp
over market dynamics, will continue.
MMEPL was established in Coimbatore, Tamil Nadu, in 1978. The
company manufactures different types of cranes and hoists. It is
promoted and managed by Mr. Harish Vagadia, Mr. M Durairajan, and
Mr. G Kaleeswaran.
MOTHERS AGRO: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Mothers Agro
Foods Private Limited (MAFPL) a Long-Term Issuer Rating of 'IND
BB-'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR60.00 mil. Fund-based limits assigned with IND BB-
/Stable/IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect MAFPL's small scale of operations, and weak
EBITDA margin and credit metrics According to provisional
financials for FY18, the company's revenue was INR441 million
(FY17: INR432 million) and EBITDA margin was 3.06% (4.08%). The
marginal revenue growth was driven by an increase in customer
orders and realizable value, and the fall in the margin was due
to high consumable expenses. Meanwhile, in FY18, its interest
coverage was 2.48x (FY17: 2.69x) and net leverage was 4.64x
(3.69x). The deterioration in the credit metrics, despite a
reduction in the overall debt, was due to low absolute EBITDA.
The ratings also reflect MAFPL's tight liquidity, indicated by an
average maximum fund-based limit utilization of 99.00% for the 12
months ended March 2018. However, its net working capital cycle
was comfortable at 50 days in FY18 (FY17: 51 days) on account a
low inventory period.
The ratings, however, are supported by the promoters' experience
of more than a decade in the food processing industry.
RATING SENSITIVITIES
Negative: Any decline in the revenue and the operating
profitability leading to any further deterioration in the credit
metrics could be negative for the rating.
Positive: Any substantial rise in the revenue and the operating
profitability leading to any improvement in the credit metrics
could be positive for the rating.
COMPANY PROFILE
MAFPL was incorporated in 2004 by Mr. TP Varkey and Mr. Dhanya
Varkey in Ernakulum. The company is engaged in wheat processing.
NEEL KANTH: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Neel Kanth
Strips Pvt. Ltd.'s (NSPL) 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:
-- INR70 mil. Fund-based working capital limit 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
March 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1996, NSPL manufactures cold-rolled strips at its
facility in Punjab. The company is promoted by Mr. Krishan Kumar.
It sells its product under the brand Neel Kanth. The company is
also engaged in the trading of iron and steel.
NR ISPAT: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated N.R. Ispat &
Power Pvt. Ltd.'s (NRIPPL) 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:
-- INR269.0 mil. Fund-based working capital limit migrated to
Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR279.5 mil. Term loan due on April 30, 2023 migrated to
Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 4, 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 2008, NRIPPL manufactures sponge iron and mild
steel ingots at its facility in Raigarh, Chhattisgarh.
ONLINE PRINT: CRISIL Migrates B+ Rating to Not Cooperating
----------------------------------------------------------
CRISIL has been consistently following up with Online Print and
Pack Private Limited for obtaining information through letters
and emails dated March 26, 2018, 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 6 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Term Loan 2 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Online Print and Pack Private
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Online Print and Pack 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 Online Print and Pack Private Limited to CRISIL
B+/Stable Issuer not cooperating'.
Incorporated in 1995, Online is promoted by Ahmedabad-based Mr.
P.C. Kothawala and family. The company is engaged in the printing
and packaging industry.
P.A.S. PETRO: CRISIL Hikes Rating on INR3.5MM Cash Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its long term rating on the bank facilities
of P.A.S. Petro Product (PAS) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable', while reaffirming its short term rating at 'CRISIL
A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Foreign Letter
of Credit 8.0 CRISIL A4 (Reaffirmed)
The upgrade of rating reflects its expected improvement in
business risk profile in fiscal 2018, revenue is expected of
around INR50 to INR52 crores with margin of around 2.5% to 3.0%.
Net cash accrual is also expected to improve to INR0.8 crore to
INR1.0 crore in the said period. Working capital is expected to
be better managed in fiscal 2018 with estimated gross current
asset of around 115 days to 125 days supported by better
management of inventory and debtor days. Financial risk profile
is expected to be remain moderate in fiscal 2018 with estimated
networth of around INR5.8 crores to INR6.0 crores and expected
gearing of around less than 1 time.
The ratings continue to reflect PAS's modest scale of operations
in the highly fragmented chemical trading industry and its
working capital-intensive operations. These weaknesses are
partially offset by the extensive experience of the promoters and
their established relationships with customers and suppliers.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive and
highly fragmented chemical trading industry: PAS's scale of
operations remains small, despite being in the industry for over
a decade, because of low value addition and commodity nature of
products, and intense competition in the industry.
* Working capital intensive operations: PAS has high working
capital requirements, as reflected in gross current assets (GCA)
of 150 to 250 days over the three years ended March 31, 2017.
This is mainly on account of high level of inventory which the
firm has to maintain of around 5-6 months. However around 50% of
the inventory is order backed.
Strength
* Promoters' extensive industry experience and established
relationships with suppliers and customers: The firm is based in
Chennai and is promoted by Mr. S Senthil Kumar and his family
members. The promoter family has been trading chemicals since
1952, and set up PAS in 1992 to trade on a large scale. Over the
years, the promoters have developed strong relationships with
suppliers and customers.
Outlook: Stable
CRISIL believes PAS will continue to benefit from the extensive
experience of its promoters and its established relationships
with customers and suppliers. The outlook may be revised to
'Positive' if revenue and profitability improve on a sustainable
basis, resulting in a better financial risk profile. The outlook
may be revised to 'Negative' if there is considerable decline in
revenue or profitability or deterioration in working capital
management resulting in stretched liquidity, or if the firm
undertakes large, debt funded capital expenditure, affecting its
financial risk profile.
Established in 1992 and based in Chennai, PAS trades in soda ash
and sodium sulphate.
POGGENAMP NAGARSHETH: Ind-Ra Assigns BB+ Rating to Term Loan
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Poggenamp
Nagarsheth Powertronics Private Limited's (PANPPL) additional
bank facilities as follows:
-- INR50 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating;
-- INR220 mil. Non-fund-based working capital limits assigned
with IND A4+ rating; and
-- INR72 mil. Term loan limits due on March 2023 assigned with
IND BB+/Stable rating.
KEY RATING DRIVERS
PANPPL's average working capital limit utilization was almost
100% for the 12 months ended April 2018.
RATING SENSITIVITIES
Negative: A decline in the revenue and/or EBITDA margins
resulting in deterioration in the credit metrics, all both on
consolidated and sustained bases, could lead to a negative rating
action.
Positive: A substantial increase in the revenue while maintaining
the EBITDA margin at the current level resulting in improved
credit metrics, both on consolidated and sustained bases, could
lead to a positive rating action.
COMPANY PROFILE
Formed in 1982, PANPPL is promoted by Gauttam Nagarsheth and
Gaurang Nagarsheth. The company manufactures electrical motor
components called motor stampings and laminations, rotors and
stators, and has an installed capacity of 15,000mtpa in Vavdi,
Ahmedabad.
PRALHADRAO SALUNKHEPATIL: CRISIL Assigns B Rating to INR15MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Pralhadrao Salunkhepatil Agro Private Limited
(PSAPL). The rating reflects exposure to risks related to
implementation and funding of capital expenditure (capex), along
with risk of mortality of chicken and lower demand in case of
avian epidemics. These weaknesses are partially offset by the
strong demand for poultry products.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 15 CRISIL B/Stable (Assigned)
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to implementation and funding of
capex: PSAPL is undertaking capex of INR15 crore for a new
poultry facility, and the new capacity is expected to be
partially operational by July 2018. As the capex is in the
initial stage and funding is not yet available, the company faces
risks related to its implementation and funding. Moreover, this
is the first poultry project by the promoters. Any time or cost
overruns leading to higher funding risks would be a key
monitorable.
* Mortality and demand risk related to outbreak of avian
epidemics: Any outbreak of avian epidemics would result in
increased mortality of chicken, along with decline in demand of
poultry products. Demand growth in the Indian poultry industry
slowed in fiscals 2015 and 2016, on account of adverse climatic
conditions and outbreak of avian influenza (bird flu).
Strength
* Strong demand of poultry products: Demand for poultry products
has been growing on account of various factors such as increase
in protein consumption, preference of chicken meat over other
meats and growth in Quick Service Restaurants.
Outlook: Stable
CRISIL believes PSAPL will remain exposed to funding and
implementation risks associated with its greenfield project. The
outlook may be revised to 'Positive' if the cash accruals are
higher than expected, led by timely completion of the project and
ramp-up in operations. The outlook may be revised to 'Negative'
if financial risk profile weakens on account of time or cost
overruns in the capex or if the profitability is lower than
expected.
Incorporated in February 2017, PSAPL plans to set up a poultry
facility to rear chicken in Satara, Maharashtra. It is promoted
by Mrs. Madhuri Salunkhe and Mrs. Vimal Salunkhe. It also plans
to set up a feed mill for meeting its raw material requirement.
PRIME URBAN: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Prime Urban
Development India Limited's (PUDIL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR210 mil. (increased from INR200 mil.) Fund-based facility
affirmed with IND BB+/Stable/IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects PUDIL's continued medium scale of
operations. Overall revenue fell to INR539 million in FY17 (FY16:
INR697 million), due to a revenue decline in the reality segment
to INR205 million (INR317 million). The company has recorded
overall revenue of INR600 million during 9MFY18.
The ratings also reflect the company's modest credit metrics due
to a shift in its business strategy for the real estate segment.
The company earlier used to hold an inventory of land parcels. It
has now started purchasing only those land parcels where it sees
a resale opportunity. Gross interest coverage (operating
EBITDA/gross interest expense) improved to 23.3x in FY17 (FY16:
11.9x) due to a fall in interest expenses and net leverage (total
adjusted net debt/operating EBITDAR) increased to 0.7x (0.3x)
owing to a decline in absolute EBITDA. Ind-Ra expects the credit
metrics to have deteriorated in FY18, because of a decline in
EBITDA margin with interest coverage of 1.5x in 9MFY18.
EBITDA margin declined to 25% in FY17 (FY16: 36.2%) because of a
fall in margin in the reality segment. In 9MFY18, the EBITDA
margin fell to 8.6% due to the strategy shift in real estate
segment and price fluctuations in the yarn trading segment.
The ratings are supported by the company's eight-decade-long
operational track record in trading cotton yarn and comfortable
liquidity with its utilization of the working capital limits
being 51% on average for the 12 months ended April 2018.
RATING SENSITIVITIES
Positive: An improvement in the EBITDA margin from the trading
division along with steady revenue growth leading to an
improvement in the credit metrics, on a sustained basis, would be
positive for the ratings.
Negative: Substantial deterioration in the revenue or EBITDA
margin leading to deterioration in the credit metrics, on a
sustained basis, can be negative for the ratings.
COMPANY PROFILE
PUDIL started operations in 1936. The company is in the business
of real estate and trading of cotton yarn.
PRINCE SWR: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Prince S.W.R
Systems Private Limited's (SWR) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB-'. The Outlook is Stable. The ratings have
also been migrated to the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow ups by the agency. Thus, the
rating is on the basis of best available information. 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:
-- INR81.6 mil. Term loan due on April 4, 2019 downgraded and
migrated to Non-Cooperating Category with IND BB+ (ISSUER
NOT COOPERATING) /Stable rating;
-- INR827.2 mil. Fund-based cash credit downgraded and migrated
to Non-Cooperating Category with IND BB+ (ISSUER NOT
COOPERATING) /Stable rating; and
-- INR525 mil. Non-fund-based limit downgraded and migrated to
Non-Cooperating Category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information.
KEY RATING DRIVERS
The downgrade reflects a sustained breach of Ind-Ra's negative
rating guidelines with EBITDA margin declining to 9.6% in FY17
(FY16: 11.0%) and interest cover (operating EBITDA/gross interest
expense) sustaining below 2.0x (FY17: 1.74x, FY16: 1.70x).
The ratings have been migrated to the non-cooperating category as
the company did not provide Ind-Ra with the latest financials and
information related to working capital utilization for the last
two months, despite continuous requests and follow-ups.
RATING SENSITIVITIES
Negative: A further decline in operating profitability leading to
a further deterioration in the credit metrics will be negative
for the ratings.
Positive: An improvement in the operating profitability, leading
to a sustained improvement in the credit metrics will be positive
for the ratings.
COMPANY PROFILE
Incorporated in 1995, SWR is a Mumbai-based manufacturer of
Polyvinyl chloride pipes, and fittings for drainage, plumbing and
irrigation purposes. The company has two manufacturing facilities
in Silvassa.
R D FASHIONS: CRISIL Reaffirms B+ Rating on INR5.40MM Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
R D Fashions Private Limited (RDF) at 'CRISIL B+/Stable/CRISIL
A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.40 CRISIL B+/Stable (Reaffirmed)
Letter of Credit .35 CRISIL A4 (Reaffirmed)
Term Loan .50 CRISIL B+/Stable (Reaffirmed)
The ratings continue reflect the working capital-intensive
operations and a modest scale in an intensely competitive textile
industry. The rating also factors RD's weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of promoters in the ready-made garments segment of the
textile industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Elongated working capital-cycle: Operations are very highly
working capital intensive as reflected in gross current assets of
335 days as on March 31, 2017, with receivables of 105 days and
inventory of 203 days.
* Weak financial risk profile: Networth was small at INR3.4 crore
and TOL/ANW high at 5.9 times as on March 31, 2017. Interest
cover was also average at 1.4 times in fiscal 2017. While
financial profile will improve with improvement in scale and
profitability, it will continue to remain weak over medium term.
* Modest scale of operations in the intensely competitive RMG
industry: Scale of operations has remained small at INR18.74
crore in fiscal 2017 and the company remains exposed to intense
competition in the RMG industry.
Strengths:
* Extensive experience of promoters in the ready-made garments
segment of textile industry: Presence of more than three decades
in the ready-made garments segment has enabled the promoters to
establish strong relationship with customers and suppliers.
Outlook: Stable
CRISIL believes RDF will continue to benefit over the medium term
from the extensive experience of its promoters and established
relationship with customers and suppliers. The outlook may be
revised to 'Positive' in case of a significant and sustained
improvement in revenue and profitability or in case of
significant improvement in working capital cycle or capital
structure. The outlook may be revised to 'Negative' if a
significant decline in revenue or profitability, stretched
working capital cycle, or larger-than-expected, debt-funded
capital expenditure further weakens financial risk profile.
Incorporated in 2006 by Mr. Rajan Dsouza, RDF manufactures ready-
made garments for men and children at its facility in Vasai,
Maharashtra.
RPG INDUSTRIAL: Ind-Ra Maintains 'BB+' Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained RPG Industrial
Product Pvt Ltd.'s (RPG) 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:
-- INR150 mil. Fund-based limit maintained in Non-Cooperating
Category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR240 mil. Term loan maintained in Non-Cooperating Category
with IND BB+ (ISSUER NOT COOPERATING) rating; and
-- INR15 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
March 27, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Formed in 2011, RPG recycles waste plastic bottles and other
industrial polyester waste to create fabric at its 19,800mtpa
manufacturing plant in Meerut, Uttar Pradesh. It then supplies
fabric to textile firms across India. The company is managed by
Mr. Sanjeev Gupta and Mr. Rajeev Gupta.
SARTHAV INFRA: CRISIL Migrates Rating on INR20MM LT Loan to B
-------------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated the rating
on the long-term bank facility of Sarthav Infrastructure Private
Limited (SIPL) to 'CRISIL D Issuer Not Cooperating'. However,
management has started sharing information necessary for carrying
a comprehensive rating review. Consequently, CRISIL is now
migrating the rating from 'CRISIL D Issuer Not Cooperating' to
'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 20 CRISIL B/Stable (Migrated
Bank Loan Facility from 'CRISIL D' Issuer Not
Cooperating)
The rating continues to reflect susceptibility to risks related
to completion and saleability of ongoing project of SIPL, and its
exposure to inherent cyclicality of real estate sector. These
rating weaknesses are partially offset by extensive experience
and funding support of SIPL's promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Susceptibility to risks related to completion and saleability
of ongoing project: The company is currently executing its
residential project, Abhishree Orchard in Sanand, Gujarat. Though
the construction is about 80% complete, the pace of the
construction progress and sales velocity will remain key rating
sensitivity factors over the medium term.
* Exposure to inherent cyclicality: The real estate sector is
affected by volatile prices, opaque transactions, and a highly-
fragmented market. This is compounded by aggressive timelines for
completion and shortage of manpower (project engineers and
skilled labour).
Strength
* Extensive experience and funding support of promoters: The
firm's promoters have longstanding presence in the real estate
sector and have extended financial support in the past. Promoters
are likely to continue to extend need-based funding aid over the
medium term.
Outlook: Stable
CRISIL believes SIPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if sizeable customer advances and
timely implementation of ongoing project lead to healthy cash
inflow. The outlook may be revised to 'Negative' if time and cost
overruns in ongoing project or delays in receipt of customer
advances lead to low cash inflow and pressure on liquidity.
SIPL, promoted by the Sutaria and Shah families and incorporated
in 2007, is engaged in real estate development in Ahmedabad. The
company is executing three projects in Ahmedabad.
SEVENHILLS HEALTHCARE: Insolvency Professional Seeks Buyers
-----------------------------------------------------------
The Hindu reports that bids have been invited from prospective
buyers by the National Company Law Tribunal-appointed resolution
professional for Sevenhills Healthcare, a multi-speciality
hospital which also has a presence in Visakhapatnam. The move
comes after lenders initiated insolvency proceedings, a first for
a large multi-speciality hospital, the report says.
The Hindu relates that the hospital that opened amid much fanfare
in 2010 has run into debts worth nearly Rs. 1,300 crore. Most
doctors and staff members have left due to non-payment of dues
since July 2017, the report says.
"Only about 13-odd doctors continue to be attached to the
hospital. Rest have moved to other organisations," as aid a
doctor, adding that insolvency was declared on March 13 after
which the resolution professional, Abhilash Lal, took over, the
Hindu relays.
"Now, the previous management of the hospital has no control. The
hospital continues to function, but offers limited services.
There are fewer admissions and fewer out-patient department (OPD)
services as well," said the doctor, who continues to be attached
to Seven Hills. He said the resolution professional has ensured
that all payments are honored since his appointment. "The earlier
dues will hopefully be paid once a new management takes over," he
said.
According to the report, the 306-bed hospital was opened with
actor Amitabh Bachchan as a brand ambassador. Aishwarya Rai
Bachchan gave birth to her daughter at this hospital. The Hindu
notes that the management hoped that its proximity to the
international airport - just 2.5 km away - would attract medical
tourists.
However, it failed to pick up and could never commission the
1,500 beds as projected. It managed to stay afloat by conducting
bulk surgeries under the State's Rajiv Gandhi Jeevandayi Arogya
Yojna, now known as the Mahatma Jyotiba Phule Jan Arogya Yojana
(MJPJAY). JP Morgan was said to be in talks with for a buyout,
the report says. Meanwhile, the lenders approached the NCLT for
resolution.
On December 28 last year, the 50-odd full-time doctors went on
strike and only carried out emergency services. MJPJAY services
were also stopped and patients had to be turned away, the Hindu
says.
SHIV SHAKTI: Ind-Ra Maintains B Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shiv Shakti
Rice Mills' 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:
-- INR150 mil. Fund-based working capital limit 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 20, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shiv Shakti Rice Mills, a partnership entity incorporated in
2008, runs a 5 tonnes/hour rice mill in Sangrur, Punjab.
SHUBH RICE: Ind-Ra Maintains B Issuer Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shubh Rice
Exports Private Limited'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 actions are:
-- INR150 mil. Fund-based working capital limits maintained in
Non-Cooperating Category with IND B (ISSUER NOT COOPERATING)
/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR32.88 mil. Term loan maintained in Non-Cooperating
Category with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 5, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Based in Patran, Shubh Rice Exports was incorporated in July 2013
and commenced operations in September 2014. The company is
engaged in the business of rice milling and packaging of non-
basmati rice.
SMART MOTORS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Smart Motors
Private Limited's (SMPL) Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND B (ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the
rating is based on the best available information. Therefore,
investors and other users are advised to take appropriate caution
while using the rating.
The instrument-wise rating action is:
-- INR100 mil. Fund-based working capital limit (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The ratings have been downgraded following a confirmation from
SMPL's lenders that the company has been categorized as a non-
performing asset.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would lead to a positive rating action.
COMPANY PROFILE
Assam-based SMPL was incorporated in 2004 as an authorized dealer
of Mahindra & Mahindra Limited ('IND AAA'/Stable). SMPL obtained
the dealership of Chevrolet Sales India Pvt. Ltd. in 2009 and M&M
for construction equipment in FY12.
SP ACCURE: CRISIL Migrates B Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has been consistently following up with SP Accure Labs
Private limited (SP) for obtaining information through letters
and emails dated March 22, 2018, 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 7.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 10.0 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 SP Accure Labs Private
limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on SP Accure Labs 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 SP Accure Labs Private limited to CRISIL B/Stable
Issuer not cooperating'.
Incorporated in 2013 and based in Hyderabad, SP is promoted by
Mr. K Vijay Prakash. The company sells and distributes
pharmaceutical formulations, mainly oral solids and injectables,
with specialisation in the oncology segment.
SRINIVASA MURUGAN: CRISIL Moves B+ Rating to Non-Cooperating
------------------------------------------------------------
CRISIL has been consistently following up with Srinivasa Murugan
Industries (SMI) for obtaining information through letters and
emails dated March 21, 2018, 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 12 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Srinivasa Murugan Industries,
which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Srinivasa Murugan Industries 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 Srinivasa Murugan Industries to CRISIL B+/Stable
Issuer not cooperating'.
SMI, a partnership firm established in 2015, is engaged in the
ginning and pressing of raw cotton.
SUNNY STAR: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sunny Star
Hotels Private Limited's (SSHPL) 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 BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR99.7 mil. Term loan due on June 2020 maintained in Non-
Cooperating Category with IND BB+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 18, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2012, SSHPL operates a five-star hotel named The
Panache in Patna, Bihar. The hotel commenced operations in
January 2014; it has 73 rooms, two banquets, three bars and
restaurants as well as a nightclub. It is managed by four
directors: Dileep Kumar, Priyesh Kumar, Ankita Narayan and Usha
Devi.
SURYA FAB: Ind-Ra Migrates 'BB-' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Surya Fab'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 action is:
-- INR100 mil. Fund-based limit migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) ratings.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 8, 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 1999, Surya is engaged in the trading of cotton
fabrics. The firm is managed by Mr. Rajeev Nagpal and his father
Mr. Baldev Raj Nagpal. The company's head office is in Delhi.
UTTAM GALVA: Ind-Ra Affirms 'D' Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Uttam Galva
Steels Ltd.'s (UGSL) Long-Term Issuer Rating at 'IND D (ISSUER
NOT COOPERATING)'. The issuer did not participate in the rating
exercise, despite requests and follow-ups by the agency. Thus,
the ratings are on the basis of best available information.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
The instrument wise rating actions are:
-- INR28.4 mil. Long-term loans Long term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR4 mil. Fund-based limit (Long term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR24.4 mil. Non-fund-based limit (Short term) affirmed with
IND D (ISSUER NOT COOPERATING) rating;
-- INR1 mil. Short-term debt (Short term) affirmed with IND D
(ISSUER NOT COOPERATING) rating.
-- INR2 mil. Standby limits (Short term) affirmed with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR2 mil. Proposed non-fund-based limit (Short term) affirmed
with Provisional IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information.
KEY RATING DRIVERS
The affirmation reflects UGSL's ongoing delays in debt servicing
that are likely to persist till a resolution strategy for the
recovery of pending dues is firmed up by the company's lenders.
RATING SENSITIVITIES
Timely debt servicing for at least three continuous months could
result in a rating upgrade.
COMPANY PROFILE
Incorporated in 1985, UGSL manufactures cold rolled sheets, cold
rolled close annealed sheets, galvanized plain and corrugated
sheets and color coated lines.
VAIBHU INFRA: CRISIL Moves B+ Rating to Not Cooperating Category
----------------------------------------------------------------
CRISIL has been consistently following up with Vaibhu Infra Tech
India Private Limited (VITIPL) for obtaining information through
letters and emails dated March 21, 2018, 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
---------- --------- -------
Bank Guarantee 3 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 3 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 0.5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Vaibhu Infra Tech India
Private Limited, which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on Vaibhu Infra Tech India Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Vaibhu Infra Tech India Private Limited to CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
VITIPL was established in 1998 as a proprietorship firm, and was
reconstituted as a private limited company in 2010. It is
promoted and managed by Mr. Babji Kollipara. The company provides
IT services and software solutions. It develops and implements
customized software applications/software (primarily for e-
governance), and provides consulting and advisory services.
VIBHU COAL: CRISIL Assigns B+ Rating to INR6.25MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Vibhu Coal Private Limited (VCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.25 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 2.25 CRISIL B+/Stable (Assigned)
The rating reflects VCPL's working-capital-intensive operations
and susceptibility to fluctuation in the prices of traded goods.
These weakness are partially offset by the promoters' extensive
experience and the company's improving scale of operations and
healthy operating margin.
Analytical Approach
Unsecured loans from promoters and affiliates, outstanding at
INR8.38 crore as on March 31, 2017, bear an interest rate that is
lower than the market rate. The loans have been classified as
neither debt nor equity.
Key Rating Drivers & Detailed Description
Weaknesses
* Working-capital-intensive operations: Operations are likely to
remain working capital intensive. Gross current assets, debtors
and inventory were sizeable at 265, 196, and 60 days,
respectively, as of March 2017. At an average credit received on
coal purchase is of 60 days, while that from sponge iron
suppliers is of 120 days.
* Susceptibility of operating margin to price fluctuation of
traded goods: Intense competition and rising imports may continue
to restrict scalability and profitability over the medium term.
Also, any fluctuation in price of raw material post procurement
will impact profitability unless passed on to customers. It is
expected that operating profitability will, nevertheless, remain
healthy, despite volatility in coal prices over the medium term.
Strengths
* Promoters extensive experience: The promoters have extensive
experience of around 17 years in the coal trading business. Over
the years, he has gained rich experience in the coal trading
business; this has helped the company establish strong
relationships with its suppliers and clients, traders and various
industries in the region. This has helped the company achieve
sales of around INR49.42 crore in fiscal 2017. These benefits
should continue to support the business over the medium term.
* Improving scale of operation and operating margin: VCPL has
maintained steady growth'at a compound annual rate of 12.26% in
revenue in the three years through fiscal 2017. Revenue grew to
49.42 crore in fiscal 2017, from INR42.02 crore in fiscal 2016.
Operating margin has been healthy despite the trading nature of
business. In fiscal 2017, operating margin was 5.6%, while in
fiscal 2016, it was 4.1%. Revenue is expected to grow at a steady
pace while operating margin remains largely stable over the
medium term.
Outlook: Stable
CRISIL believes VCPL will benefit over the medium term from the
experience of the promoter and its established customer base. The
outlook may be revised to 'Positive' if higher-than-expected
revenue and accrual lead to a stronger credit risk profile.
Conversely, the outlook may be revised to 'Negative' if stretch
in working capital cycle, low accrual, or any large capex weakens
financial risk profile, including liquidity.
VCPL was incorporated in 2012 by Mr. Vivek Satpal Jain and Mr.
Ashish Pritam Jain. Business was initially started as a
partnership firm by the brothers Mr. Satpal Jain and Mr. Pritam
Jain. Later, their sons took over the business and converted the
partnership into a company. VCPL trades in coal and steel-sponge
iron in Maharashtra.
VIKAS COTEX: CRISIL Assigns B+ Rating to INR12.35MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Vikas Cotex. The ratings reflect the extensive
experience of promoters and the company's established market
position. These strengths are partially offset by average
financial risk profile, and exposure to intense competition in
the cotton ginning business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan .81 CRISIL B+/Stable (Assigned)
Cash Credit 12.35 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 1.37 CRISIL B+/Stable (Assigned)
Key Rating Drivers & Detailed Description
Strengths
* Extensive experience of the promoters: Longstanding presence of
nearly three decades in the cotton ginning business, through
other family-owned entities, their active involvement in
business, and strong relationships with customers have led to net
sales of INR29 crore for fiscal 2017.
* Established market position: The firm can gin 870 bales of
cotton per day, and utilises nearly 80% of its installed capacity
during the peak season. Sale of cotton bales brings in almost 60%
of revenue, with the balance from sale of cotton seed. The
diverse customer base has helped the firm establish its market
position.
Weaknesses
* Average financial risk profile, constrained by moderate working
capital intensity: Networth, which stood at INR4.3 crore as on
March 31, 2017, may remain low around INR5 crore in the medium
term, constrained by small accretion to reserve and absence of
equity infusion plans Debt protection metrics were also average,
as reflected in interest coverage and net cash accrual to total
debt ratios of 2.3 times and 0.11 time, for fiscal 2017.
* Exposure to intense competition: The barriers to entry to the
industry are low because of low capital requirement and easily
accessible technology. All these factors make the ginning
industry highly competitive. Presence of several unorganised
players and low entry barriers in the cotton ginning business,
have led to intense competition and low profitability.
Outlook: Stable
CRISIL believes the financial risk profile will remain
constrained by muted cash accrual and moderate working capital
requirement.
Upside scenario
* Significant growth in revenue and sustained operating
performance
* Decline in debt due to sizeable cash generation or fund
infusion by promoter
* Better working capital management
Downside scenario
* Substantial decline in cash accrual due to competition or
operational inefficiencies
* Larger-than-expected, debt-funded capital expenditure, thereby
weakening capital structure and debt protection metrics,
particularly liquidity
* Material decline in profitability due to adverse raw material
price movements.
Vikas was set up in 2013, as a proprietorship firm of the
Mathakiya family. The firm gins and presses raw cotton and sells
lint cotton and cotton seeds. The manufacturing unit is located
in Lalpar at Morbi, Gujarat. Operations commenced in February
2014.
====================
N E W Z E A L A N D
====================
ORANGE H: Education Ministry has multiple claims vs. Firm
---------------------------------------------------------
Phil Pennington at Radio New Zealand reports that the Education
Ministry has two other claims against a building company that is
now caught up in a receivership.
It is already owed NZ$13.4 million by H Construction North Island
for shoddy work at the leaking Botany Downs Secondary College
that opened in 2004, RNZ says.
H Construction was part of major construction company Hawkins.
According to RNZ, the Ministry said it was "considering the
options available" now that the receiver for a related company,
Orange H Group, was in charge.
It is further exposed because of the two active claims in the
High Court against H Construction North Island.
The Ministry refused to say what those claims involved, the
report notes.
It would be working with Botany Downs over coming weeks on a
long-term plan for fixing the school, it said, RNZ relays.
"We hope to have had our position clarified over the coming
weeks," the report quotes Botany board of trustees chair Murray
Goodman as saying.
Former Hawkins Group chief executive Geoff Hunt remains as the
chair of the high-profile Construction Strategy Group (CSG) which
often lobbies the government.
"I see my role as CSG chair as incomplete but, as always, if the
members wish to replace me I will step aside," he told RNZ.
RNZ notes that Hawkins also built four rotting hospital buildings
at Counties Manukau District Health Board around the year 2000.
Mr Hunt had led Hawkins from 2013. When Hawkins was sold to
Australian giant Downer last year, the rump of what was left
behind, including some ongoing projects, was renamed Orange H
Group, RNZ discloses.
Orange H was owned by McConnell Group, of which Mr. Hunt was
president.
According to RNZ, Orange H has said it had been hit by a
"dramatic rise" in how much risk it was forced to take on over
building projects, which echoes what Fletcher Building said when
it began the process of pulling the plug on its loss-making
building unit in February.
"The issues that have impacted Orange H and other construction
sector companies are the same issues that the CSG is working to
resolve," Mr. Hunt said in an email to RNZ.
How risks were being shared unevenly under building contracts was
a "root cause of many industry issues", RNZ quotes Mr. Hunt as
saying. "It is encouraging that the current government does, at
Minister level, have an understanding of the issues and an
interest in tackling them."
YARROWS BAKERY: Ex-Director Ordered to Pay NZ$277K in Legal Costs
-----------------------------------------------------------------
Leighton Keith at Stuff.co.nz reports that the financial fallout
in a long-running court battle involving Yarrows Bakery has
continued for a former director.
Stuff relates that the High Court has ordered Paul Steven Yarrow
to pay costs of NZ$277,695.19 to cover Westpac New Zealand's
legal fees incurred during a hearing to have the former director
declared bankrupt in September 2017.
Yarrow went bust following the NZ$150 million collapse of the
Yarrow Group in 2011 and a failed attempt to sue the company's
accountant for NZ$90 million, Stuff recalls.
Westpac was owed NZ$15,000,000 when the Yarrow companies went
into receivership and applied to have the son of founder Noel
Yarrow declared bankrupt, according to Stuff.
Stuff says Justice Jeremy Doogue found Westpac was entitled to
recover the solicitors costs it incurred taking the legal action.
Justice Doogue said the three-day hearing had been dragged out
because of the way Yarrow had instructed counsel, the report
relates.
"The proceeding which I was required to hear became unjustifiably
complicated because of the introduction of many issues of
marginal relevance and a failure to clearly plead exactly what
the defences were.
"The shifting ground upon which Mr. Yarrow based his defence not
only contributed to the length of the judgment which I was
obliged to issue but, no doubt, exacerbated the legal costs which
Westpac incurred."
In 2017 the High Court threw out Mr. Yarrow's claim against
accountant and former company co-director Michael Finnigan, whom
he blamed for the collapse and his subsequent loss of income from
the Manaia-based company, Stuff recalls.
Stuff notes that Mr. Yarrow, who took over the 90 per cent
majority shareholding of the bakery conglomerate in 2006, and
Mr. Finnigan had previously enjoyed a close business and personal
relationship before the companies crumbled.
He became reliant on Mr. Finnigan's advice but Mr. Yarrow later
claimed he defrauded him for his own gain by withholding crucial
information which led to him ultimately losing the entire value
of his investment in the Yarrow group.
Stuff says proceedings against Mr. Finnigan began in 2011 with an
initial claim of NZ$4 million personal loss and NZ$7 million in
foregone benefits, and later rose to NZ$90 million.
Around the same time Mr. Yarrow also brought court proceedings
against a number of parties, in New Zealand and Australia,
including his late parents' charitable trust, and the executors
of his father's estate.
In 2017 Justice Joseph Williams found "persistent, serial and
inexcusable non compliances" had effectively held Mr. Finnigan,
who was 80-years-old, to ransom for six years until proceedings
reached a stalemate and he threw the case out.
Yarrow, who acted for himself, lacked the skill and application
necessary to translate his "burning sense of injustice" into a
"timely dispatch of his case", Stuff quotes Mr. Williams as
saying. "He is engaged with complex litigation that he knows he
cannot complete without help he cannot obtain."
Mr. Finnigan was later awarded NZ$100,350 in costs for the long-
running court battle, the report adds.
About Yarrows (The Bakers)
Founded in 1923, Yarrows (The Bakers) Limited is one of the last
independent bakeries in New Zealand. It began exporting in the
late 1970s and in 1996, won the contract for the Subway sandwich
chain throughout Australasia. It produces 30,000 frozen dough
rolls a week for Subway in New Zealand, Australia, and parts of
Asia.
*********
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.
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*** End of Transmission ***