/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180525.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 25, 2018, Vol. 21, No. 103 Headlines A U S T R A L I A EMECO HOLDINGS: Fitch Hikes LT Issuer Default Rating to 'B' ERH TRANSPORT: Ex-Director Charged With Breaching Duties ICON BREWING: First Creditors' Meeting Set for May 31 INTERNATIONAL BUSINESS: First Creditors' Meeting Set for May 31 NUFARM LTD: S&P Assigns BB- Rating to New US$475MM Unsec. Notes PEPPER I-PRIME 2018-1: S&P Gives (P)B Rating to Class F Notes SMEG ENTERPRISES: Second Creditors' Meeting Set for June 4 TOYS "R" US AUSTRALIA: First Creditors' Meeting Set for May 31 C H I N A ANBANG INSURANCE: Sells Majority Stake in Century Securities BIOSTAR PHARMACEUTICALS: Needs More Time to Complete Form 10-Q CBAK ENERGY: Delays Filing of First Quarter Form 10-Q YINGLI GREEN: Unit Ordered to Repay Remaining Medium-Term Notes ZHONGRONG XINDA: Fitch Cuts LT IDR & Sr. Unsec. Rating to BB- H O N G K O N G SWING MEDIA: Court Appoints PwC as Liquidators I N D I A ALLAHABAD BYPASS: ICRA Withdraws D Rating on INR78.5cr LT Loan ASHA STONE: Ind-Ra Maintains 'B' Issuer Rating in Non-Cooperating BVS DISTILLERIES: Ind-Ra Maintains B- Rating in Non-Cooperating CHEER SAGAR: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating DATTA MEGHE: CRISIL Migrates B Rating to Not Cooperating Category DMK PARTICLEBOARD: ICRA Assigns B+ Rating to INR7.10cr Loan FOREMOST INTERNATIONAL: CRISIL Moves D Rating to Not Cooperating FORTIS HEALTHCARE: ICRA Puts B+ Rating on Review GANESH YADAV: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating GUPTA & SONS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating GWASF QUALITY: ICRA Reaffirms B Rating on INR6.40cr Loan HANUMANT SUGARS: ICRA Withdraws B+ Rating on INR19.74cr Loan HILL-BROW: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating HINDUSTAN CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating IDBI BANK: Fitch Affirms 'BB+' LT IDR, Outlook Stable KBS INDUSTRIES: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating KEW INDUSTRIES: CRISIL Moves D Rating to Not Cooperating Category KOPPAL SOLAR: CRISIL Lowers Rating on INR10MM Term Loan to D KRS PHARMA: CRISIL Migrates B- Rating to Not Cooperating Category LAGGAR INDUSTRIES: CRISIL Moves D Rating to Not Cooperating LAXMI RICE: CRISIL Lowers Rating on INR12.5MM Cash Loan to B M V SHIPTRADE: ICRA Removes B+ Rating From Issuer Not Cooperating MADHYA BHARAT: CRISIL Moves D Rating to Not Cooperating Category NEPTUNE SUPER: CRISIL Moves B Rating to Not Cooperating Category NIKUNJ EXPORTS: CRISIL Moves B+ Rating to Not Cooperating OSM PROJECTS: CRISIL Migrates B+ D Rating to Not Cooperating P.A.S. PETRO: CRISIL Reaffirms B+ Rating on INR4.5MM Cash Loan PARAS FOODS: CRISIL Migrates D Rating to Not Cooperating Category PATIALA COTSPIN: Ind-Ra Maintains BB+ Rating in Non-Cooperating PRAKASH INDUSTRIAL: CRISIL Reaffirms B Rating on INR10MM Loan RADHADAMODAR MULTIPURPOSE: CRISIL Reaffirms B+ Cash Credit Rating RAJASTHAN FASTENERS: CRISIL Moves D Rating to Not Cooperating RENEWSYS INDIA: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating RISHIKA COTTONS: CRISIL Migrates B+ Rating to Not Cooperating ROMEGA FOAM: CRISIL Cuts Rating on INR6.5MM Cash Loan to D SAMBHAV SHELTERS: ICRA Assigns B+ Rating to INR30cr LT Loan SHIVA STRUCTURES: Ind-Ra Migrates BB LT Rating to Non-Cooperating SHREE VENKATESHWARA: CRISIL Moves B Rating to Not Cooperating SHREEDHAR MILK: ICRA Maintains D Rating in Not Cooperating Cat. SHREYANS OILS: Ind-Ra Retains B Issuer Rating in Non-Cooperating SHRIRAM PROPERTIES: CRISIL Moves C Rating to Not Cooperating SORT INDIA: ICRA Puts 'D' Rating Under Review SOUTHERN AUTO: Ind-Ra Lowers Long-Term Issuer Rating to 'D' SRI CHAITANYA: CRISIL Migrates B+ Rating to Not Cooperating SRI SUNFLOWER: CRISIL Moves D Rating to Not Cooperating Category SUNIL HITECH: ICRA Lowers Rating on INR300cr Term Loan to B SYNERGY AGRI: CRISIL Assigns B- Rating to INR2.75MM LT Loan TEE VENTURES: ICRA Reaffirms B Rating on INR8cr LT Loan TRENT CHEMICAL: Ind-Ra Lowers Long-Term Issuer Rating to BB+ UDDYAM CEMENT: CRISIL Reaffirms 'B' Rating on INR14MM LT Loan V.R.N. ENTERPRISES: CRISIL Moves D Rating to Not Cooperating VM STAR: Ind-Ra Maintains B+ LT Issuer Rating in Non-Cooperating YADAV TRACTOR: Ind-Ra Maintains 'B+' LT Rating in Non-Cooperating M A L A Y S I A 1MALAYSIA DEVELOPMENT: Unable to Repay Debt of Almost $7-Bil. N E W Z E A L A N D FLETCHER BUILDING: Cuts Deal With Bankers Amid Covenant Breaches MAORI TELEVISION: Job Losses Expected Amid Financial Challenges S O U T H K O R E A * SOUTH KOREA: Credit Union Delinquency Ratio Rises at End March S R I L A N K A KOTAGALA PLANTATIONS: Fitch Affirms CC(lka) National LT Rating V I E T N A M VIETNAM BANK: Fitch Hikes IDR to BB- & Alters Outlook to Stable - - - - - ================= A U S T R A L I A ================= EMECO HOLDINGS: Fitch Hikes LT Issuer Default Rating to 'B' ----------------------------------------------------------- Fitch Ratings has upgraded Australia-based Emeco Holdings Limited's Long-Term Issuer Default Rating to 'B', from 'B-', reflecting Fitch's view that the company is well positioned to capitalise on its increased fleet size and rising rental yield following a series of acquisitions. The Outlook is Stable. Fitch expects the company's business and financial profile to further improve following the April 30, 2018 announcement of its planned AUD80 million (excluding transaction costs and subject to completion adjustments) equity-funded acquisition of Matilda Equipment. The acquisition will be funded by a fully underwritten AUD90 million pro rata accelerated non-renounceable entitlement offer and is targeted for completion in early July 2018. Emeco announced on May 22, 2018 that it has completed both the institutional and retail entitlement offers and has raised approximately AUD90 million. The acquisition provides Emeco with access to Matilda's fleet, bypassing growth capex and freeing cash for continued debt reduction. KEY RATING DRIVERS Improving Financial Performance: Fitch believes Emeco is well- positioned to benefit from current mining-sector conditions, which are showing increased exploration and production activity, as well as tight rental-market supply. Emeco reported Fitch- adjusted revenue of AUD171 million in 1H18 (1H17: AUD74 million) and EBITDA of AUD61 million (1H17: AUD28 million), following a recovery in its operating utilisation to 61% during the third quarter of the financial year ending June 2018 (FY18), from 56% in 3QFY17, and a higher rental yield, which should continue rising over the next 12 to 18 months. Fitch expects the company's financial performance to continue improving over the next 12-18 months owing to its larger available rental fleet and increased contribution from its previous mergers and acquisitions - Andy's Earthmovers (Asia Pacific) Pty Ltd, Orionstone Holdings Pty Ltd and Force Equipment Pty Ltd - and planned Matilda acquisition. Acquisitions to Strengthen Balance Sheet: A series of equity- funded acquisitions, including the planned Matilda acquisition, will lower Emeco's growth capex and contribute incremental earnings to repay debt under its mandatory cash-sweep provision. The Matilda acquisition, if completed, will bring an additional 83 machines with low operating hours. Matilda generated revenue of around AUD8.5 million and EBITDA of AUD6.0 million between January and March 2018. Commitment to Deleverage: The company aims to cut leverage, as measured by Emeco-defined net debt/operating EBITDA, to below 1.5x by 2020 (end-2017: 2.1x on a pro forma basis for the Matilda acquisition). Fitch believes Emeco's publicly announced commitment to deleverage and its improving financial performance increase the probability of it meeting its target and refinancing its senior secured notes on better terms in 2020. The company's enhanced fleet size provides another layer of protection to senior lenders and could become an additional source of cash flow to support its deleveraging. Fitch expects Emeco's leverage, as measured by FFO adjusted net leverage, to improve to around 2.0x by 2020, due to its larger fleet size, rising operating utilisation, incremental earnings and capex savings following its mergers and acquisitions. Exposure to Cyclical Sector: Fitch believes Emeco is susceptible to commodity-price changes and the need for large capex to expand during the commodity-price up-cycle. The capital-intensive nature of the equipment-rental business prohibits Emeco from deleveraging during the up-cycle without equity injections. Its weak bargaining power with customers also makes its cash flow less visible during industry downturns. However, Emeco is currently well-positioned within its sector and the trajectory of its leverage profile counterbalances its cyclical sector exposure. DERIVATION SUMMARY Emeco's rating reflects its improving cash flow profile and Fitch's expectation of its deleveraging over the next three years. This compares with peer, Anton Oilfield Services Group (B- /Stable), whose rating takes into account its weak liquidity position and financial leverage metrics. These factors explain the one-notch differential between the two entities. Emeco's rating compares with peer, PT Bukit Makmur Mandiri Utama (BB-/Stable), which has better revenue visibility stemming from its long-term contracts with miners. In addition, Bukit's revenue is protected from the long transition time of around three years that is required to switch mining contractors, which acts as a high switching cost for miners. Bukit's larger scale and superior earning visibility result in a two-notch differential with Emeco. KEY ASSUMPTIONS Fitch's Key Assumptions within Its Rating Case for the Issuer - Increased operating utilisation rate over the next three years - Net capex at around 20% of revenue per annum - Matilda acquisition completed by early July 2018 RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Fitch does not expect positive rating action in the near-term due to Emeco's small scale and exposure to cyclical commodity prices. Developments that May, Individually or Collectively, Lead to Negative Rating Action - Deterioration of operating performance, including shrinkage of the operating utilisation rate and loss of major contracts. - FFO adjusted net leverage exceeding 4.0x on a sustained period, which can be driven from reverse in commodities cycle which results in material fall in commodities prices. LIQUIDITY Adequate Liquidity: Emeco's next significant debt maturity is in March 2022, consisting of USD356 million of 9.25% senior secured notes issued by its wholly owned subsidiary, Emeco Pty Ltd. The company had a committed undrawn revolving facility of AUD35 million and cash in hand of AUD56 million as at end-2017. Fitch expects Emeco to generate positive free cash flow over the next four years and to deleverage under its mandatory cash-sweep provision. ERH TRANSPORT: Ex-Director Charged With Breaching Duties -------------------------------------------------------- Edward Harold Pye of Fairney View, Queensland has appeared in the Ipswich Magistrates' Court charged with two counts breaching his duties while a director of ERH Transport Services Pty Ltd (ERH). Following an investigation, the Australian Securities and Investments Commission alleges that in 2014, on two separate occasions, Mr. Pye dishonestly used his position to transfer AUD25,000 and AUD550,000 of ERH Transport Services Pty Ltd funds to himself and another person. At the time of the alleged conduct, Mr. Pye was the sole director of ERH Transport Services Pty Ltd. The matter was in Court on May 17, 2018. Mr. Pye did not enter a plea. It was adjourned for further mention hearing at the Ipswich Magistrates Court on June 28, 2018. The Commonwealth Director of Public Prosecutions is prosecuting the matter. Mr. Pye has been charged with two counts of dishonest use of position with the intention of directly or indirectly gaining an advantage for himself or someone else under section 184 of the Corporations Act. Mr. Adam Ward and Mr. Michael Griffin of Worrells Solvency & Forensic Accountants were appointed as joint and several liquidators of ERH Transport Services Pty Ltd on July 30, 2014. ASIC was assisted in its investigation following a receipt of a supplementary report that was lodged by Mr. Ward who alleged misappropriation of ERH Transport Services Pty Ltd funds. ICON BREWING: First Creditors' Meeting Set for May 31 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Icon Brewing Company Pty Ltd will be held at the offices of Cor Cordis, Level 29, 360 Collins Street, in Melbourne, Victoria, on May 31, 2018, at 11:30 a.m. Bruno Anthony Secatore and Barry Wight of Cor Cordis were appointed as administrators of Icon Brewing on May 21, 2018. INTERNATIONAL BUSINESS: First Creditors' Meeting Set for May 31 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of: -- International Business Corporation Pty Ltd; -- MG Sydney Pty Ltd; and -- Germani Sydney Pty. Ltd. will be held at the offices of Worrells Solvency & Forensic Accountants, Suite 1, Level 15, 9 Castlereagh Street, in Sydney, NSW, on May 31, 2018, at 11:30 a.m. Simon Cathro of Worrells Solvency was appointed as administrator of International Business Corporation on May 21, 2018. NUFARM LTD: S&P Assigns BB- Rating to New US$475MM Unsec. Notes --------------------------------------------------------------- S&P Global Ratings said it assigned its long-term issue credit ratings of 'BB-' to Nufarm Ltd.'s US$475 million senior unsecured notes due 2026. The issuance comprises tranche A for an amount of US$266 million and tranche B for US$209 million. The notes have a fixed rate coupon of 5.75%. At the same time, S&P has withdrawn the 'B+' rating on the US$325 million senior unsecured notes upon repayment. S&P said, "We have assigned an issue rating of 'BB-' based on a recovery rating of '5' to the proposed senior unsecured notes, indicating modest recovery prospects under our hypothetical default scenario. In our view, unsecured creditors will benefit from the incremental value derived from the enlarged business, following completion of its acquisition of several European product portfolios." Nufarm Australia Ltd. is the issuer of the tranche A notes and Nufarm Americas Inc. is the issuer of the tranche B notes. Nufarm Australia Ltd. and Nufarm Americas Inc. are financing subsidiaries of Nufarm Ltd., the guarantor of the senior unsecured notes. The 'BB' issuer credit rating on Nufarm is unaffected by the proposed note issuance. The rating on Nufarm continues to reflect its solid position in select global crop-protection markets and its geographically diverse operations. Tempering these strengths are the company's small scale and narrow product focus of predominantly crop-protection products compared with its major global competitors. Nufarm's more-focused operating strategy and management's restructuring initiatives in recent years have strengthened its financial position and improved its earnings profile. PEPPER I-PRIME 2018-1: S&P Gives (P)B Rating to Class F Notes ------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Permanent Custodians Ltd. as trustee of Pepper I- Prime 2018-1 Trust. Pepper I-Prime 2018-1 Trust is a securitization of prime residential mortgages originated by Pepper HomeLoans Pty Ltd. The preliminary ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including its view that the credit support is sufficient to withstand the stresses it applies. The credit support for the rated notes comprises note subordination. -- The underwriting standard and centralized approval process of the seller, Pepper Homeloans. -- The availability of a yield-enhancement reserve, amortization reserve, and overcollateralization amount, which will all be funded by excess spread to cover potential yield shortfalls and loss reimbursements and to repay principal on the notes at various stages of the transaction's term. -- The extraordinary expense reserve of AUD150,000, funded by Pepper on or before closing, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- S&P said, "Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 2.2% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest. PRELIMINARY RATINGS ASSIGNED Class Rating Amount (mil.) A1-S AAA (sf) 120.0 A1-L AAA (sf) 200.0 A2 AAA (sf) 48.0 B AA (sf) 10.6 C A (sf) 8.0 D BBB (sf) 5.4 E BB (sf) 3.6 F B (sf) 2.2 G NR 2.2 NR--Not rated. SMEG ENTERPRISES: Second Creditors' Meeting Set for June 4 ---------------------------------------------------------- A second meeting of creditors in the proceedings of SMEG Enterprises Pty Ltd has been set for June 4, 2018, at 11:30 a.m. at the offices of Mackay Goodwin, Level 2, 10 Bridge Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 1, 2018, at 4:00 p.m. Grahame Robert Ward of Mackay Goodwin was appointed as administrator of SMEG Enterprises on May 3, 2018. TOYS "R" US AUSTRALIA: First Creditors' Meeting Set for May 31 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of Toys "R" Us (Australia) Pty. Ltd. and Babies "R" Us (Australia) Pty. Ltd. will be held at Wesley Conference Centre, 220 Pitt St, in Sydney, NSW, on May 31, 2018, at 11:00 a.m. Jason Preston, Keith Crawford, and Barry Kogan of McGrathNicol were appointed as administrators of Toys "R" Us (Australia) on May 21, 2018. ========= C H I N A ========= ANBANG INSURANCE: Sells Majority Stake in Century Securities ------------------------------------------------------------ The South China Morning Post reports that Anbang Insurance is selling its majority stake in a domestic securities firm for what's expected to be at least CNY3.6 billion (US$564.67 million), in what will be its first major divestment after the company was taken over by the authorities following the dramatic downfall of its former chairman Wu Xiaohui. Century Securities, a Shenzhen-based, mid-sized securities company, lost CNY56 million in the first four months of this year. Anbang owns 91.65 per cent, SCMP relates citing a filing posted on China Beijing Equity Exchange on May 22. Last year, it made CNY2 million in annual profit, owned CNY6.7 billion of assets, but had total debts worth CNY5.3 billion, documents show, SCMP relays. According to SCMP, the ownership of Century Securities has hung in abeyance, or undetermined ownership, since 2013, when its two biggest shareholders sold their stake to Anbang Group, for CNY1.7 billion (reported at the time by Securities Times). But the deal has never been ratified by China's securities regulator, making Anbang unable to register as a formal shareholder, the filing, as cited by SCMP, said. SCMP relates that the filing, however, recognises the deal between Anbang and the former shareholders, while adding an official decision to dispose of the stake has now been made since the insurance giant was taken over by a "working group", headed by China's banking and insurance authorities. "From the beginning of the takeover, all the functions of Anbang's shareholder meeting, board of directors, and board of supervisors has ceased [to exist] and their powers transferred to the working group, the filing said. According to SCMP, the stake sale in Century also marks the first major divestment by Anbang, after the company expanded from a small property insurer to a global acquirer which snatched top landmarks, including the Waldorf Astoria Hotel in New York. "The troubling financial issue with Anbang was always the mismatch between its short-term structured products and longer- term investment projects," the report quotes Brock Silvers, managing director of Kaiyuan Capital, a Shanghai-based investment advisory firm, as saying. "With Beijing and [Anbang] retail investors all waiting for repayment, look out for Anbang to methodically sell assets, especially overseas assets, wherever it can reasonably do so," he added. About Anbang Insurance Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers property insurance, life insurance, health insurance, asset management, insurance sales agency, and insurance brokerage services. The company provides car insurance, accident insurance, cargo transportation insurance, credit insurance, life-long insurance, and medical insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2018, The Strait Times related the Chinese government had seized control of Anbang Insurance, the troubled Chinese company that owns the Waldorf Astoria hotel in New York and other marquee properties around the world, and charged its former chairman with economic crimes. The Strait Times noted that the move is Beijing's biggest effort yet to rein in a new kind of Chinese company, in this case, one that spent billions of dollars around the world over the past three years buying up hotels and other high-profile properties. The rise of these companies illustrates China's growing economic might, but Chinese officials have grown increasingly concerned that they were piling up debt to make frivolous purchases. In a statement posted on its website on Feb. 23, the China Insurance Regulatory Commission said the government was taking over to ensure the "normal and stable operation" of the company. "Illegal operations at Anbang may have seriously endangered the company's solvency, prompting the government to take control," the statement read. The Strait Times noted the move also caps the downfall of Anbang leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng Xiaoping, China's paramount leader in the 1980s and a towering figure in Chinese politics, and was widely considered politically connected. BIOSTAR PHARMACEUTICALS: Needs More Time to Complete Form 10-Q -------------------------------------------------------------- Biostar Pharmaceuticals, Inc. was unable to complete its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018, within the prescribed time period without unreasonable effort and expense. The Company said additional time is needed for it to compile and analyze supporting documentation in order to complete the Quarterly Report and to permit the Company's independent accountants to complete their review of the unaudited financial statements included in the Quarterly Report. About Biostar Pharmaceuticals Based in Xianyang, China, Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China -- http://www.biostarpharmaceuticals.com/-- develops, manufactures, and markets pharmaceutical and health supplement products for a variety of diseases and conditions. Biostar incurred a net loss of $5.69 million in 2016 and a net loss of $25.11 million in 2015. As of Sept. 30, 2017, the Company had $41.42 million in total assets, $5.27 million in total liabilities, all current, and $36.14 million in total stockholders' equity. Mazars CPA Limited, Certified Public Accountants, in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, stating that the Company had experienced a substantial decrease in sales volume which resulted a net loss for the year ended Dec. 31, 2016. Also, part of the Company's buildings and land use rights are subject to litigation between an independent third party and the Company's chief executive officer, and the title of these buildings and land use rights has been seized by the PRC Courts so that the Company cannot be sold without the Court's permission. In addition, the Company already violated its financial covenants included in its short-term bank loans. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CBAK ENERGY: Delays Filing of First Quarter Form 10-Q ------------------------------------------------------ CBAK Energy Technology, Inc. notified the Securities and Exchange Commission via a Form 12b-25 that it will be delayed in filing its Quarterly Report on Form 10-Q for the period ended March 31, 2018. The Company has not finalized its financial statements for the quarter ended March 31, 2018, and as a result, the Company is unable to file its Form 10-Q within the prescribed time period without unreasonable effort or expense. CBAK Energy anticipates that it will file the Form 10-Q within the five-day grace period provided by Exchange Act Rule 12b-25. About CBAK Energy Dalian, China-based CBAK Energy Technology, Inc., formerly China BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the business of developing, manufacturing and selling new energy high power lithium batteries, which are mainly used in the following applications: electric vehicles; light electric vehicles; and electric tools, energy storage, uninterruptible power supply, and other high power applications. CBAK Energy reported a net loss of US$21.46 million for the year ended Dec. 31 2017 compared to a net loss of US$12.65 million for the year ended Sept. 30, 2016. The Company reported a net loss of US$2.19 million for the three months ended Dec. 31, 2016. As of Dec. 31, 2017, CBAK Energy had US$153.13 million in total assets, US$150.93 million in total liabilities and US$2.19 million in total shareholders' equity. Centurion ZD CPA Limited, in Hong Kong, China, the Company's auditor since 2016, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2017 stating that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Dec. 31, 2017. All these factors raise substantial doubt about its ability to continue as a going concern. YINGLI GREEN: Unit Ordered to Repay Remaining Medium-Term Notes --------------------------------------------------------------- Yingli Green Energy Holding Company Limited announced that a PRC court has ruled that Baoding Tianwei Yingli New Energy Company Limited, a subsidiary of the Company, should repay the remaining principal and overdue penalty of the medium-term notes due Oct. 13, 2015 and the principal, interest, and overdue penalty of the medium-term notes due May 12, 2016 issued by Tianwei Yingli to one of the holders of those MTNS, who filed lawsuits against Tianwei Yingli to recover those amounts as described in the Company's announcement dated on Sept. 1, 2017. The principal amount of the MTNs held by the Note Holder as recognized by the court was RMB65.7 million, representing approximately 3.7% of the total amount of the 2011 MTNs and 2010 MTNs that are still outstanding. The overdue penalties recognized by the court would be calculated at a daily penalty interest rate of 0.021% and will continue to accrue before actual payment thereof. Tianwei Yingli plans to appeal the judgment while continuing to seek a mutually beneficial solution with the Note Holder out of court. About Yingli Green Energy Yingli Green Energy Holding Company Limited (NYSE: YGE), known as "Yingli Solar", -- http://www.yinglisolar.com/-- is a photovoltaic (PV) module manufacturer. Yingli Green Energy's manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and PV module assembly. Headquartered in Baoding, China, Yingli Green Energy has more than 20 regional subsidiaries and branch offices and has distributed more than 20 GW solar panels to customers worldwide. Yingli Green reported a net loss attributable to the Company of RMB3.31 billion for the year ended Dec. 31, 2017, compared to a net loss attributable to the Company of RMB2.09 billion for the year ended Dec. 31, 2016. As of Dec. 31, 2017, Yingli Green had RMB10.34 billion in total assets, RMB20.83 billion in total liabilities and a total shareholders' deficit of RMB10.49 billion. The report from the Company's independent accounting firm PricewaterhouseCoopers Zhong Tian LLP on the consolidated financial statements for the year ended Dec. 31, 2017, includes an explanatory paragraph stating that facts and circumstances including accumulated and recurring losses from operations, negative working capital, cash outflows from operating activities, and uncertainties regarding the repayment of financing obligations raise substantial doubt about the Company's ability to continue as a going concern. ZHONGRONG XINDA: Fitch Cuts LT IDR & Sr. Unsec. Rating to BB- ------------------------------------------------------------- Fitch has downgraded Zhongrong Xinda Group Co., Ltd.'s Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB-' from 'BB'. Fitch has also downgraded the company's senior unsecured rating and the rating on its USD500 million 7.25% senior notes due 2020, issued by Zhongrong International Resources Co., Ltd, to 'BB-' from 'BB'. The Outlook is Negative. The one-notch downgrade reflects the higher-than-Fitch-expected rise in Zhongrong Xinda's leverage in 2017, which resulted from the company's acquisition of a certain financial investment as well as elevated working capital outflow and capex. Leverage improved in 1Q18 after Zhongrong Xinda repaid CNY8.6 billion in short-term borrowing. However, Fitch expects net leverage to remain above 6.0x unless management completes its in planned disposal of certain financial assets and long-term equity investments. KEY RATING DRIVERS Financial Investment Increases Leverage: Zhongrong Xinda's FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories, reached 7.8x in 2017 - which was higher than Fitch had expected - from 5.1x in the previous year. Total debt reached CNY40.6 billion due to the company's unplanned acquisition of a certain financial investment. The company's working capital outflow and capex also exceeded Fitch's expectations, lifting total adjusted debt to CNY47.0 billion, from CNY33.2 billion. Leverage Improves in 1Q18: The company started cutting debt in 1Q18, with total debt declining to CNY35.9 billion. Working capital also improved, as note receivables declined by CNY1.8 billion, helping fund the company's deleveraging. Management has indicated its desire to further deleverage via assets disposals. Coking Business Intact: Zhongrong Xinda's 2017 EBITDA increased by 13.0% yoy, to CNY4.6 billion, and gross profit rose by 16.0%, to CNY4.9 billion, as its coking business gross profit swelled by 71.0% to more-than-offset its weaker-than-Fitch-expected logistic business. The favourable pricing environment for coking coal helped the segment's gross profit margin expand by 60bp to 16.1%. Capex to Moderate: Zhongrong Xinda's capex of CNY3.0 billion in 2017 was above Fitch's expectations, as the company spend CNY1.2 billion on prepayments for engineering and construction work related to its Peru-based iron ore mine. Zhongrong Xinda's management expects capex to moderate to CNY1.0 billion-1.5 billion per annum, with investments in building new liquefied natural gas stations as well as its coking business and environmental upgrades. Fitch does not expect the company to spend additional capex on its Peru iron mine in 2018. Deleveraging Possible by Disposals: Fitch forecasts 2018 FFO adjusted net leverage to decline to only 6.3x without disposals of financial assets or long-term equity investments. Fitch estimates that disposals of around CNY5 billion of Zhongrong Xinda CNY27 billion of financial assets and long-term equity investments as at end-1Q18, if accompanied with equivalent debt reduction, would bring leverage below the negative rating guideline of 4.5x. The company's management says it is already in discussions to dispose certain financial investments of about CNY2 billion. Fitch has not factored in these disposals due to timing uncertainty. DERIVATION SUMMARY Zhongrong Xinda's ratings are supported by its leading market position in coke processing and trading and logistics, its large operating scale and healthy business profile. The ratings are constrained by the company's high leverage and low margins. Its leverage and profitability are comparable with 'BB-' rated China Grand Automotive Services Co., Ltd (BB-/Stable). Zhongrong Xinda has lower margins and FFO fixed charged coverage than Grupo KUO, S.A.B. de C.V. (BB/Stable) and Harsco Corporation (BB/Stable). Zhongrong Xinda's profitability and leverage - as measured by FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories - is weaker than that of Tunghsu Group Co., Ltd. (B+/Stable), but Zhongrong Xinda has a higher coverage ratio. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - 2018-2020 CAGR of 7% in sales - EBITDA margin of 6% between 2018-2020 - Capex of CNY1.65 billion per annum between 2016-2019 - Fitch has not factored in capex or contributions from the Peru iron ore mine as management is exploring options for a clear development plan RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - The disposal of certain financial assets and long-term equity investments and a commitment to maintain FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories, below 4.5x Developments that May, Individually or Collectively, Lead to Negative Rating Action - Failure to cut FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories, to below 4.5x through the disposal of certain financial assets and long-term equity investments - EBITDA margin declining to less than 5% for a sustained period (2017: 6.2%) LIQUIDITY Limited Liquidity: Zhongrong Xinda's liquidity improved in 1Q18 after it repaid CNY8.6 billion in short-term borrowing. However, the company still has CNY9.4 billion in short-term borrowing and CNY4.7 billion in puttable bonds. This compares with CNY6.7 billion in cash and CNY4.6 billion in available credit facilities. In addition, Fitch forecasts free cash flow of CNY3.0 billion in 2018. ================ H O N G K O N G ================ SWING MEDIA: Court Appoints PwC as Liquidators ---------------------------------------------- The Strait Times reports that Swing Media Technology Group said on May 24 that liquidators from PwC had been appointed to facilitate the winding-up of the company in February. The Hong Kong Court has also appointed the same liquidators to two group subsidiaries incorporated in Hong Kong, namely Swing Media Industrial Limited and Swing Technology Limited, the report says. Hong Kong-based Swing Media Technology Group Limited is a manufacturer of data storage products. The Company manufactures video cassette housing products, compact discs (CDs), digital versatile discs (DVDs), compact disk recordables (CD-Rs) and business card CDs. ========= I N D I A ========= ALLAHABAD BYPASS: ICRA Withdraws D Rating on INR78.5cr LT Loan -------------------------------------------------------------- ICRA Ratings has withdrawn the long-term rating of [ICRA]D assigned earlier to the INR127.1-crore long-term bank facilities of Allahabad Bypass Pathways Private Limited (ABPPL). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- based Limits 78.50 [ICRA]D; withdrawn Long-term Non- fund Based Limits 48.60 [ICRA]D; withdrawn Rationale: The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension and at the request of the company based on the no-objection certificate provided by its banker. ABPPL is a SPV incorporated in July 2013 by Prakash Asphaltings & Toll Highways Limited (PATH) for undertaking an Operations and Maintenance (OMT) based toll road project on Allahabad Bypass, National Highway from 158.00 km to 242.71 km. The shareholding in the SPV is 100% held by PATH which is involved in the construction and maintenance of various infrastructure projects as a Developer, Contractor and on Joint Venture basis. ASHA STONE: Ind-Ra Maintains 'B' Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Asha Stone Crusher'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: -- INR30 mil. Fund-based limit Maintained in non-cooperating category IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR20 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 March 18, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Asha Stone Crusher is engaged in crushing and screening of sand, grit and stone. BVS DISTILLERIES: Ind-Ra Maintains B- Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained B.V.S. Distilleries Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR290 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 11, 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 2011, BVSDPL manufactures Indian-made foreign liquor. CHEER SAGAR: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Cheer Sagar Exports' 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: -- INR96 mil. Fund-based limit maintained in 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 January 20, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Cheer Sagar Exports manufactures and exports garments and home textiles. DATTA MEGHE: CRISIL Migrates B Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Datta Meghe Institute of Medical Sciences (DMIMS) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 16 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 7 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Loan Against Property 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 Datta Meghe Institute of Medical Sciences. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Datta Meghe Institute of Medical Sciences 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 Datta Meghe Institute of Medical Sciences to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Established in 1988, DMIMS is a public trust registered under the Bombay Public Trust Act, 1950. It offers medical, engineering, and nursing courses at its nine institutes in Sawangi, and operates a teaching hospital. DMK PARTICLEBOARD: ICRA Assigns B+ Rating to INR7.10cr Loan ----------------------------------------------------------- ICRA Ratings has assigned a long-term rating of [ICRA]B+ to the INR9.10-crore fund-based limits of DMK Particleboard LLP. ICRA has also assigned a short-term rating of [ICRA]A4 to the INR0.65- crore non-fund based limits of DMK. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 2.00 [ICRA]B+ (Stable); assigned Term Loan 7.10 [ICRA]B+ (Stable); assigned Bank Guarantee 0.65 [ICRA]A4; assigned Rationale The assigned ratings positively factor in the reasonable experience of the partners in the laminates industry and the locational advantage enjoyed by it in terms of lower logistics costs and easy access to quality raw material due to its proximity to Gandhidham (Gujarat), which has been declared as a timber zone by the Government. The ratings, however, are constrained by DMK's small scale and nascent stage of operations along with the risks associated with stabilisation of recently commenced operations as per the expected operating parameters. The ratings are further constrained by its weak financial risk profile as marked by loss before depreciation and tax in the first year of operations, leveraged capital structure, weak debt protection metrics and high working capital intensity. ICRA also considers the vulnerability of the firm's revenues and profitability to any fluctuations in wood waste and resin prices, which are the key raw materials, its exposure to competition in a fragmented industry caused by numerous small and unorganised players, cyclicality in the real estate industry and availability of substitutes like medium density fibreboard and plywood. Outlook: Stable ICRA believes the firm will continue to benefit from the experience of its partners in the laminates industry. The outlook may be revised to Positive if substantial growth in revenue and profitability, improvement in the net worth base and better working capital management, strengthens the financial risk profile. The outlook may be revised to Negative if cash accrual is lower than expected, or if any substantial withdrawal from partner's capital account, or stretch in the working capital cycle, weakens liquidity. Key rating drivers Credit strengths Reasonable experience of partners in the laminates industry: DMK was established in 2016 by Mr. Milan Ughareja with his family and friends to manufacture wooden particleboards. Mr. Milan Ughareja has reasonable experience in the laminates industry by virtue of his earlier association with another entity engaged in a related business sector. Locational advantage: The firm is benefitted in terms of lower transportation costs and easy access to quality raw material due to its proximity to Gandhidham (Gujarat), which has been declared as a timber zone by the Government. Credit challenges Small scale and nascent stage of operations: The firm commenced its commercial operations from April 2017, hence its nascent stage of operations exposes the firm to stabilisation risk. In addition, the scale remained small in the first year of operations with the firm reporting revenues of INR5.09 crore in FY2018. Weak financial risk profile: As per provisional financials, DMK reported loss before depreciation and tax of INR0.13 crore in 11M FY2018 due to initial stage of operations and high interest burden. A high debt level to fund the initial capex for setting up the unit and high working capital requirements and a relatively lower net worth base resulted in a leveraged capital structure with a gearing of 2.10 times, total debt/OPBDITA of 13.37 times and TOL/TNW of 2.81 times as on February 28, 2018. The debt coverage indicators also stood weak with interest coverage ratio of 0.82 time in 11M FY2018. Vulnerability of profitability and revenues: The major raw materials required by the firm are wood waste and resin, and hence its profitability remains exposed to any fluctuation in prices of its key raw materials. The firm's revenues and profitability are also exposed to cyclicality in the real estate industry and availability of better substitutes like medium density fibreboard and plywood. Industry competition: The firm faces competition from other small and unorganised players in the particleboard industry, which limits its pricing flexibility and bargaining power with the customers, pressurising its revenues and margins. Established in February 2016, DMK Particleboard LLP manufactures plain wooden particleboards and pre-laminated particleboards in the dimension of 8' X 4' with thickness of 17 mm, which are used in furniture. Its commercial operations commenced from April 2017. DMK's manufacturing facility is in Morbi (Gujarat), with an annual installed capacity of 6,00,000 sheets. In 11M FY2018, the firm reported a loss before depreciation and tax of INR0.13 crore on an operating income (OI) of INR4.05 crore. FOREMOST INTERNATIONAL: CRISIL Moves D Rating to Not Cooperating ---------------------------------------------------------------- CRISIL has been consistently following up with Foremost International Private Limited (FIPL) for obtaining information through letters and emails dated February 20, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Bill Discounting 9 CRISIL D (Issuer Not Cooperating; Rating Migrated) Foreign Letter of Credit 2.65 CRISIL D (Issuer Not Cooperating; Rating Migrated) Long Term Loan 1.10 CRISIL D (Issuer Not Cooperating; Rating Migrated) Packing Credit 9.00 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Foremost International Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Foremost International 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 Foremost International Private Limited to 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2002, FIPL manufactures and exports RMG, predominantly for women, to Europe. The company, promoted by Mr. Varun Moudgil and Ms Shailja Khanna, has its manufacturing plant in Gurgaon (Haryana). FORTIS HEALTHCARE: ICRA Puts B+ Rating on Review ------------------------------------------------ ICRA Ratings has placed the rating of Fortis Healthcare Holdings Private Limited under review due to non receipt of information from the rated entity and Debenture Trustee ["DT"] regarding timely servicing of debt, and non availability of debt servicing disclosure(s) on recognized stock exchange as mandated under Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015. ICRA in accordance with SEBI Circular on 'Monitoring and Review of Ratings by Credit Rating Agencies (CRAs'), dated June 30, 2017 has sought confirmation from Fortis Healthcare Holdings Private Limited on debt servicing for the instruments, however has not received any response as yet: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible 12.50 [ICRA]B+ (negative); ISSUER Debentures NOT COOPERATING Non-convertible 150.00 [ICRA]A4; ISSUER NOT Debentures COOPERATING ICRA is monitoring the rating for material developments and would come out with a rating action if required and disclose the same via Press release on its website. GANESH YADAV: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Ganesh Yadav's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR150 mil. Non-fund-based limit migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 19, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Ganesh Yadav is a proprietorship firm that is engaged in civil construction works such as roads, bridges, highways and flyovers for the government of Jharkhand. GUPTA & SONS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Gupta & Sons (Motors) Private Limited's (GSMPL) 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: -- INR60 mil. Fund-based limits migrated to Non Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR20 mil. Non-fund-based limits migrated to Non Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 15, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE GSMPL was incorporated in 1973 in the Gwalior district of Madhya Pradesh by Mr. Sunil Gupta. The company has a two-wheeler dealership of Baja Auto Ltd. GWASF QUALITY: ICRA Reaffirms B Rating on INR6.40cr Loan -------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating at [ICRA]B for the INR6.40-crore fund-based facilities, INR1.10-crore term loan (revised from INR2.08 crore), and the INR2.00-crore (revised from INR1.02 crore) unallocated limits of GWASF Quality Castings Private Limited (GWASF). The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-PCFC/ FBD/OD 6.40 [ICRA]B (Stable); reaffirmed Fund-based-Term Loan 1.10 [ICRA]B (Stable); reaffirmed Unallocated Limits 2.00 [ICRA]B (Stable); reaffirmed Rationale The rating reaffirmation considers extensive experience of the promoters of over three decades and the established track record of the company in the steel-casting industry. The rating continues to derive comfort from the company's established relationship with reputed customers and the preferred supplier agreement with Flowserve Corporation, which allows assured annual off-take and subsequently supports business prospects. The rating also considers the improvement in margins in FY2018, with reduced input costs and better absorption of overheads. The healthy order book of INR8.8 crore as on March 31, 2018, to be dispatched over next 5-6 months, provide revenue visibility in the near term. The rating, however, continues to remain constrained by the company's modest scale of operations, restricting operational and financial flexibility. Additionally, reduction in order inflow from the US and European customers following weak demand from the end-user industries has impacted the revenues over the past three fiscals. High working capital requirements due to elongated debtor levels result in dependency on external borrowings, leading to moderate gearing of 1.2 times as on March 31, 2018 and moderate coverage indicators. Further, the rating factors in the company's high customer concentration and intensely competitive nature of the industry, which limit bargaining power as well as its pricing flexibility. The rating also notes the vulnerability of the company's profitability to raw material price fluctuations. Going forward, GWASF's ability to achieve healthy revenue growth and improve profitability, while effectively managing working-capital requirements, will be the key rating factors. Outlook: Stable The 'Stable' outlook reflects ICRA's expectation that GWASF will continue to benefit from the extensive experience of its promoters in the steel-casting industry. The outlook may be revised to 'Positive' if the company is able to demonstrate substantial growth in revenues and profitability, resulting in healthy cash accruals or if any improvement in the capital structure strengthens the overall financial profile. The outlook may be revised to 'Negative' if the company reports lower-than- expected accruals, or if any major capital expenditure or any stretch in working-capital cycle weakens liquidity. Key rating drivers Credit strengths Extensive experience of the promoters in the casting industry: Established in 1988, GWASF's promoters have over three decades of experience in the steel-casting industry. The company's manufacturing unit is in Mangalore, Karnataka with an installed capacity to produce 720 MT castings per annum. The company mainly caters to the requirements of the valve and pump manufacturers, which in turn supply to the oil & gas and the chemical industries. Established relationship with key customers: Over the years, the company has established healthy relationship with reputed international customers like Flowserve Corporation, ITT Inc. and ARI Armaturen GmbH & Co. and domestic customers like Weir Minerals (India) Private Limited, Pacmac Engineers Private Limited etc. resulting in repeat orders. However, the customer concentration remained high with the top-five customers accounting for ~90% of the total revenues in FY2018. Preferred vendor status and yearly off-take arrangement with Flowserve Corporation: GWASF is the preferred vendor for Flowserve Corporation, US, one of the leading manufacturers and suppliers of pumps, valves, seals and components to the process industries (power, oil, gas, chemical etc.). GWASF has a three- year preferred supplier agreement with Flowserve Corporation. As per the terms, the agreement is automatically extended for a three-year period provided both parties meet obligations under the agreement. Credit challenges Modest scale of operations: GWASF's scale of operations continued to remain modest with an operating income of INR13.9 crore in FY2018, which declined from INR14.2 crore in FY2017. Revenues were impacted over the past three fiscals due to reduced order inflow from the US and European customers following weak demand from the end-user industries. The moderate scale of operations restricts operational and financial flexibility to a major extent. Moderate financial risk profile with high working capital intensity: The capital structure of the company remained moderate with a gearing of 1.2 times as on March 31, 2018 (though improved from 1.4 times as on March 31, 2017) and moderate coverage indicators. The working capital intensity of the company has remained historically high primarily due to high inventory holding and receivables. The same stood at ~57% in FY2018 compared to ~46% in FY2017. Margins exposed to raw-material price fluctuations and forex risks: With high inventory holding requirements due to longer execution period, GWASF's profitability remains vulnerable to fluctuation in raw-material prices. However, its ability to pass on the raw-material price fluctuations mitigates the risk to some extent. With ~75% of its revenues derived through exports, the profitability is also exposed to foreign exchange fluctuation risks. However, the major borrowings (PCFC limits and term loan) of GWASF are foreign currency denominated, which provides partial natural hedge for the receivables. Highly fragmented nature of the industry limits pricing flexibility: Intense competition and fragmented nature of the industry amid presence of many small and medium-sized players in and around the region where the company operates limit its overall pricing flexibility and in turn, keeps the margins under check. Established in 1988, GWASF Quality Castings Private Limited manufactures steel and ferrous alloy casting for valves, pumps and precision machined castings. It is promoted by Mr. Gautham Krishnan, who has over three decades of experience in the castings industry. The company's manufacturing facility is located in Mangalore with an installed capacity of 720 MT per annum. The company started exporting its products to the US and Europe in 1995. In FY2018, on a provisional basis, the company reported a net profit of INR0.3 crore on an operating income of INR13.9 crore compared to a net loss of INR0.5 crore on an operating income of INR14.2 crore in the previous year. HANUMANT SUGARS: ICRA Withdraws B+ Rating on INR19.74cr Loan ------------------------------------------------------------ ICRA Ratings has withdrawn the long-term rating of [ICRA]B+ (Stable) for the INR20.00-crore fund based and proposed limits of Hanumant Sugars Private Limited (HSPL). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Limits 19.74 [ICRA]B+(Stable); withdrawn Unallocated (Proposed Limits) 0.26 [ICRA]B+(Stable); withdrawn Rationale The ratings assigned to HSPL have been withdrawn at the request of the company, based on the no-objection certificate provided by its banker. Outlook: Not applicable Hanumant Sugars Pvt. Ltd. (HSPL) is a group company of the Maheshwari Group, which has diverse operations that include sugar, rice milling and trading of agricultural commodities etc. The sugar mill is located in Village Dhanora (Betul) M.P with an installed capacity of 1500 TCD. The commissioning of the sugar unit started on December 15, 2016 after successful trial runs. Further the company has a 2.50-MW co-generation plant. HILL-BROW: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Hill-Brow Metallics & Construction 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 BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR80 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR150 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 22, 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, Hill-Brow Metallics & Construction is engaged in the civil construction of roads and bridges. HINDUSTAN CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating ---------------------------------------------------------------- CRISIL has been consistently following up with Hindustan Construction - Raebareli (HC) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 6 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 0.47 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 Hindustan Construction- Raebareli. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Hindustan Construction - Raebareli 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 Hindustan Construction - Raebareli to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. HC was established as a proprietorship firm in 2005 by Mr. Pushpendra Singh. It is an A class approved government contractor working for the PWD, AA class approved contractor for the Irrigation Department, and a contractor for Power Corporation of India to undertake projects related to construction of roads, buildings, drainage, and other works. The registered office is at Raebareli. IDBI BANK: Fitch Affirms 'BB+' LT IDR, Outlook Stable ----------------------------------------------------- Fitch Ratings has affirmed IDBI Bank Ltd.'s Long-Term Issuer Default Rating (IDR) at 'BB+', and has maintained the Viability Rating (VR) of 'ccc' on Rating Watch Evolving. The Outlook on the IDR is Stable. IDBI Bank's Support Rating Floor of 'BB+' is several notches higher than its VR, and remains the primary driver for its IDR. Ongoing challenges have gradually eroded its systemic importance, although Fitch expects the majority state ownership to remain in place and that the authorities are willing to provide support commensurate with its size and systemic role (FY17: around a 2.5% share in each of banking system assets and deposits). The VR reflects Fitch's belief that core capital levels should improve slightly following the significant capital injection by government in 4Q18. While Fitch expects core capital to remain vulnerable to significant financial losses and haircuts on NPLs, the risk of breaching the minimum AT1 trigger point of a 5.5% common equity Tier 1 (CET1) ratio has diminished since the financial year ending March 31, 2017 (FY17). The outlook for asset quality and earnings remains very weak, and Fitch expects significant pressure on both fronts in the next few quarters. KEY RATING DRIVERS IDR, SUPPORT RATING AND SUPPORT RATING FLOOR IDBI Bank's Long-Term IDR is at the same level as its Support Rating Floor. The ratings are driven by its Support Rating of '3', which reflects Fitch's expectation of a moderate probability of extraordinary state support due to the bank's waning market position and systemic importance. IDBI Bank's competitive position has eroded as it deals with its balance-sheet challenges. The government's large USD1.9 billion capital injection in FY18 (of which USD1.6 billion came in 4Q18) reiterates Fitch's assessment that the bank's moderate size, significant deposit base and majority state ownership (around 81%) is likely to keep the probability of government support moderate, and not as high as for the larger and financially stronger state banks. The Stable Outlook mirrors the Outlook on India's rating (BBB- /Stable), reflecting Fitch's view of no significant change in the sovereign's ability to support banks during extraordinary stress. VIABILITY RATING The VR at 'ccc' continues to reflect high fundamental credit risk, although Fitch believes that the risk of the bank breaching the minimum core regulatory capital ratio is somewhat lower as internal efforts on capital conservation/generation coupled with the significant capital injection should result in the CET1 ratio settling slightly higher (from 6.6% at 9M18). However, Fitch believes that core capital will be vulnerable to the increase in NPLs and losses expected for FY18, thus implying that the bank would have to continue delivering on internal capital generation, alongside government support. Fitch expects the CET1 ratio to have remained within the buffer zone (i.e. capital conservation buffer) and unable to meet the full CET1+CCB requirement of 7.4% at FY18. The bank had raised close to INR25 billion in asset sales up until 9M18, achieving only 50% of the targeted INR50 billion it had planned for FY18. IDBI Bank's gross NPL ratio was close to 25% (at 9M18), and is the weakest among state-owned banks. Fitch expects it to rise further in 4Q18. The bank has a large portfolio of loans under various restructuring buckets, a significant portion of which is at risk of being reclassified as NPLs. This follows the recent regulatory NPL recognition norms announced in February 2018, requiring banks to classify stressed assets pending restructuring as NPL. There is a chance that NPL ratios may be lower in FY19 if resolution of some of the large NPL accounts goes through as planned, but provisioning pressure on account of NPL ageing and haircuts is likely to persist in the near term, given a modest specific loan-loss cover of 41% (9M18). The bank has a significant share of NPLs under various stages of resolution. Fitch believes that there is a high possibility that the bank might report a large loss for FY18, similar to FY17. Losses in 9M18 were at nearly half that of FY17, and are likely to ensue through FY19 - although it should come down gradually as incremental slippages witness a slowdown. It should lead to some decline in credit costs (9M18: 5.4% of loans) in FY19 but remain high enough to exceed pre-provision income (9M18: 2.5% of loans), since the growth outlook remains poor for the bank. On the positive side, funding has been relatively stable notwithstanding the above issues, while an improving share of low-cost deposits is supportive of both net interest margin (NIM) and credit. Fitch believes that stability in deposits stems mainly from the majority state ownership which results in a relatively high degree of investor confidence. SENIOR DEBT IDBI Bank's senior debt rating is at the same level as its IDR, as the debt represents its unsecured and unsubordinated obligations. RATING SENSITIVITIES IDR, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT The Support Ratings and Support Rating Floors are determined by the agency's assessment of the government's propensity and ability to support the bank, based on its size and systemic importance. A change in the government's ability to provide extraordinary support due to a change in sovereign ratings or a change in the government's propensity to extend timely support may affect the Support Rating and Support Rating Floor. The IDR is driven by IDBI Bank's Support Rating Floor, and may be downgraded if factors underpinning the Support Rating Floor weaken. A downgrade in India's sovereign rating may result in a downgrade of the bank's IDR. Likewise, a change in the sovereign Outlook may lead to a revision of the Outlook on the bank's IDR. Any changes in the banks' IDRs would result in equivalent changes in its senior debt ratings. VIABILITY RATING The VR continues to be sensitive to IDBI Bank's ability to address its capital position in a sustainable way through various internal and external means. Continued capital generation, coupled with government support (in its capacity as its largest shareholder), would be viewed as positive for IDBI Bank's standalone creditworthiness. However, any sharper-than-expected deterioration in asset quality which reduces core capitalisation to unsustainable levels is likely to have a negative rating impact. In such a scenario, Fitch will continue to focus on the bank's ability to raise a significant portion of its capital needs - independent of the government - to form a view of the bank's standalone creditworthiness. The rating actions are as follows: IDBI Bank: - Long-Term IDR affirmed at 'BB+'; Outlook Stable - Short-Term IDR affirmed at 'B' - Viability Rating 'ccc' remains on Rating Watch Evolving - Support Rating affirmed at '3' - Support Rating Floor affirmed at 'BB+' - USD5 billion medium-term note programme affirmed at 'BB+' - USD1.5 billion senior unsecured notes affirmed at 'BB+' KBS INDUSTRIES: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained KBS Industries 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: -- INR100 mil. Fund-based limit maintained in non-cooperating category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR9.9 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 26, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in December 2012 by Arjun Khetrapal and Somya Khetrapal, KBS Industries manufactures copper wire rods. KEW INDUSTRIES: CRISIL Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with KEW Industries Limited (KEW) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 14.95 CRISIL D (Issuer Not Cooperating; Rating Migrated) Term Loan 1.05 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KEW Industries Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KEW Industries 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 KEW Industries Limited to 'CRISIL D Issuer not cooperating'. Kew was formed as a proprietary firm, Kew Engineering Works, in 1963 by Mr. Gurbachan Juneja. This was reconstituted as a partnership firm in 1995, and subsequently as a limited company with the present name in 1996. KOPPAL SOLAR: CRISIL Lowers Rating on INR10MM Term Loan to D ------------------------------------------------------------ CRISIL has been consistently following up with Koppal Solar Power Projects Private Limited (KSPP) for obtaining information through letters and emails dated February 19, 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 ---------- --------- ------- Term Loan 10 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL B+/Stable Issuer Not Cooperating') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KSPP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KSPP is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'.Based on the last available information, CRISIL has downgraded the ratings to 'CRISIL D Issuer Not Cooperating' as the company has been delaying on its debt repayments. Incorporated in June 2016, KSPP is based in Koppal, Karnataka. The company is in the process of setting up a 2-megawatt solar photovoltaic power plant at Sultanpura village, Koppal district. The project is expected to be commissioned by January 2017. The company has entered into a 25-year PPA with GESCOM at a price of INR8.4 per unit. KRS PHARMA: CRISIL Migrates B- Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with KRS Pharmaceuticals Private Limited (KPPL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.72 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term .28 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 7.61 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 KRS Pharmaceuticals Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KRS Pharmaceuticals 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 KRS Pharmaceuticals Private Limited to 'CRISIL B- /Stable Issuer not cooperating'. Set up in 2004 by Mr. B Narendra and Mr. B L Swamy, KPPL manufactures bulk drugs and intermediates at its plant in Hyderabad and Visakhapatnam. LAGGAR INDUSTRIES: CRISIL Moves D Rating to Not Cooperating ----------------------------------------------------------- CRISIL has been consistently following up with Laggar Industries Limited (LIL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 14 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Laggar Industries Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Laggar Industries 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 Laggar Industries Limited to 'CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. LIL was incorporated by Mr. Sandeep Sobti in 1990. The company manufactures and trades in bullet-proof steel which is used primarily in bullet-proof jackets and in armored vehicles. The company has a rolling mill with installed capacity of 30,000 tonne per annum in Jalandhar, Punjab. LAXMI RICE: CRISIL Lowers Rating on INR12.5MM Cash Loan to B ------------------------------------------------------------ CRISIL Ratings has downgraded its rating on the long-term bank facilities of Laxmi Rice Mills (LRM) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Term Loan 1.0 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects deterioration in financial risk profile, especially weakened liquidity, owing to stretched working capital cycle (gross current assets as on March 31, 2018, estimated at 350 days) and hence, higher dependence on external debt and payables. Total outside liabilities to adjusted networth (TOLANW) ratio is estimated to be substantially high at 16.0 times as on March 31, 2018. The TOLANW ratio is expected to remain weak over the medium term with continued dependence on external debt. Business risk profile is subdued, reflected in volatile operating margin following fluctuations in paddy prices. Though estimated sales for fiscal 2018 improved 15% to INR70 crore due to increase in price realisation, however volumetrically same is lower than the previous year. Business risk profile is expected to remain moderate over the medium term due to highly fragmented industry and volatility in paddy price. The rating reflects LRM's modest scale and working capital- intensive operations in the intensely competitive basmati rice industry, and below-average financial risk profile because of high TOLANW ratio and weak debt protection metrics. These weaknesses are partially offset by the extensive experience and funding support of its promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Intense competition in the rice milling business restricts scale of operations (revenue of INR69.37 crore in fiscal 2018) and bargaining power with suppliers and customers (operating margin of 7% in fiscal 2018). * Working capital-intensive operations: Gross current assets are estimated at 350 days as on March 31, 2018, due to sizeable inventory. * Below-average financial risk profile: Modest profitability and scale of operations, and sizeable working capital debt continue to constrain financial risk profile. Hence, TOLANW ratio is estimated to be high at 16.0 times as on March 31, 2018. Also, debt protection metrics were weak, with interest coverage ratio of 1.2 times for fiscal 2018. Strength * Extensive experience of promoters: Industry presence of around three decades has enabled the promoters to establish healthy relationship with customers and local suppliers, and understand local market dynamics. Outlook: Stable CRISIL believes LRM will continue to benefit from the extensive experience of its promoters and their funding support. The outlook may be revised to 'Positive' if substantial growth in revenue and cash accrual, capital infusion by promoters, and efficient working capital management strengthen financial risk profile. The outlook may be revised to 'Negative' if lower-than- expected cash accrual, or large working capital requirement or capital expenditure further weakens liquidity. Set up as a partnership firm in 1995 by Mr. Darshan Lal Garg and Ms Anita Rani, LRM mills and processes basmati and non-basmati rice and caters to large export houses. Production facilities at Muktsar Sahib, Punjab, have milling capacity of 8 tonne per hour (tph) and sorting capacity of 6 tph, utilised at 80-85%. M V SHIPTRADE: ICRA Removes B+ Rating From Issuer Not Cooperating ----------------------------------------------------------------- ICRA Ratings has removed its earlier rating of [ICRA]B+/(Stable) /A4 from the 'ISSUER NOT COOPERATING' category as M V Shiptrade Private Limited has now submitted its 'No Default Statement' ("NDS"), which validates that the company is regular in meeting its debt servicing obligations. The company's rating was moved to the 'ISSUER NOT COOPERATING' category in November 2017. The current rating derives comfort from the following key rating considerations. Credit Strengths * Vast experience of twenty five years and the standing of the promoters in the ship breaking business * Diversified customer base Credit Challenges * Financial risk profile characterised by significant decline in revenues in FY2015 and FY2016, weak profitability and debt coverage indicators * Vulnerability to cyclicality of the steel industry exposes the company to erosion in the value of inventory; exposure to ship availability risk at the competitive rates * Revenues and margins susceptible to adverse fluctuations in foreign exchange rates * Industry characterised by severe competition with dominant presence of unorganized sector; inherent low value-addition in the ship breaking business has resulted in low margins for the company * Exposure to environmental and regulatory risks MADHYA BHARAT: CRISIL Moves D Rating to Not Cooperating Category --------------------------------------------------------------- Due to inadequate information, CRISIL, in line with SEBI guidelines, had migrated the rating of Madhya Bharat Phosphate Private Limited (MBPPL) to CRISIL D/CRISIL D Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of MBPPL from 'CRISIL D/CRISIL D Issuer Not Cooperating' to 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .9 CRISIL D (Migrated from 'CRISIL D Issuer Not Cooperating') Cash Credit 20.0 CRISIL D (Migrated from 'CRISIL D Issuer Not Cooperating') Letter of Credit 8.0 CRISIL D (Migrated from 'CRISIL D Issuer Not Cooperating') Proposed Long 16.1 CRISIL D (Migrated from 'CRISIL D Term Bank Loan Issuer Not Cooperating') Facility The ratings reflect on the delay in servicing of debt obligations by the company. These weaknesses are partially offset by the extensive experience of the company's promoters in the industry. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MBPL and AP India Biotech Pvt Ltd (API). This is because the two companies together referred to as the MB group, have strong business linkages as they are engaged in the same line of businesses; API has been supplying raw material (rock phosphate) to MBPL since July 2012. Furthermore, MBPL has a shareholding of 99.99 per cent in API and has provided loans and advances of INR52 million to the company to support its working capital requirements. Key Rating Drivers & Detailed Description Weakness * Delay in servicing of debt obligations: Due to sluggish business environment leading to decline in scale and stretch in working capital cycle has resulted in delay is servicing of debt obligations. Strengths * Promoters' extensive industry experience: Promoters' extensive industry experience and funding support and established relationship with its key customer, Shri Ram Fertilizers Chemicals Ltd (Shriram). MBPPL was originally incorporated in 1998 as Omni Seeds and Farms (India) Pvt Ltd, promoted by Mr. Pawan Agrawal; the name was changed to the current one in 2003. The company manufactures SSP fertilizers. It has two manufacturing facilities, one each in Raisen and Meghnagar (both in Madhya Pradesh). API Biotech Pvt Ltd is the raw material supplier for MBPPL. NEPTUNE SUPER: CRISIL Moves B Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Neptune Super Speciality Hospitals Private Limited (NSSHPL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 1 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Term Loan 10 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Neptune Super Speciality Hospitals Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Neptune Super Speciality Hospitals 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 Neptune Super Speciality Hospitals Private Limited to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 2016 and promoted by Mr. Avinash Datar and his wife, Ms. Sangeeta Datar, NSSHPL is set up to take over AVH in Nashik. NIKUNJ EXPORTS: CRISIL Moves B+ Rating to Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with Nikunj Exports (Nikunj) for obtaining information through letters and emails dated February 9, 2018 and March 31, 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) Long Term Loan 4.6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Fund- Based Bank Limits 1.9 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 Nikunj Exports. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Nikunj Exports 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 Nikunj Exports to 'CRISIL B+/Stable Issuer not cooperating'. Set up in 2015, Nikunj is a 100 per cent export-oriented unit involved in the processing and export of granite slabs. The firm commenced commercial operations in March 2015. It is promoted by Mr. Vasudev Poddar, who has been associated with the granite industry for more than 25 years. OSM PROJECTS: CRISIL Migrates B+ D Rating to Not Cooperating ------------------------------------------------------------ Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of OSM Projects Pvt Ltd (OSMPL) to CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of OSMPL from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' to 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9.9 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable' Issuer Not Cooperating) Letter Of Guarantee 8.0 CRISIL A4 (Migrated from 'CRISIL A4' Issuer Not Cooperating) Term Loan 0.1 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable' Issuer Not Cooperating) The ratings reflect OSMPL's working capital-intensive operations; exposure to risks related to cyclicality in end-user industries and volatility in raw material prices. These weaknesses are partially offset by the extensive experience of the company's promoters in the engineering equipment set up industry and an established customer base with diversified end-user industries. Key Rating Drivers & Detailed Description Weaknesses * Working capital-intensive operations: The operations are working capital intensive as reflected by gross current assets of 182 days as on March 31, 2018. The operations are driven by high receivables of 143 days and inventory of 27 days as on March 31, 2018, though same is supported by creditors of 123 days. Receivables has increased from 128 days in fiscal 2017 because of retention money and delay in payment realization from few customers. Further company is required to keep 10 percent of contract value as a performance guarantee. Crisil believes that in medium term also operations will remain working capital intensive. * Exposure to volatility in raw material prices: Intense competition and volatility in raw material prices has kept operating margin at 5-7% in the three years through fiscal 2018. OSMPL operates in the bulk material handling equipment, coal handling, operation and maintenance system where competition is intense due to the presence of a large number of players executing small projects. Due to the low entry barriers, OSMPL will continue to face increasing competition, which may exert pressure on operating margin. * Moderate financial risk profile: Financial risk profile remains healthy with networth of INR12.17 crore as on March 31, 2018 and total outside liabilities/total networth continuing to be more than 2.3 times. Debt protection matrices remain comfortable with interest cover of more than 2 times and net cash accrual to total debt of 0.16 time in fiscal 2018. Strength * Extensive experience of the promoters: Benefits from the promoters' experience of near two decades and established relations with customers in industries such as power, cement, sugar and paper, and suppliers should support the business. Outlook: Stable CRISIL believes OSMPL will continue to benefit from its established industry track record and strong customer profile. The outlook may be revised to 'Positive' if improvement in profitability and working capital cycle strengthen financial risk profile. The outlook may be revised to 'Negative' if decline in profitability, any large, debt-funded capital expenditure, or increase in working capital requirement weakens financial risk profile. Established in 2000 as a proprietorship firm by Mr. Surender Sharma, OSMPL was reconstituted as a private limited company in 2004. The company mainly executes turnkey projects in ash handling, material handling, and coal handling systems, and provides operation and maintenance service for power, sugar, cement, paper, and other process industries. Its manufacturing facilities are in Kot, Uttar Pradesh, and Sikri, at Faridabad, Haryana. P.A.S. PETRO: CRISIL Reaffirms B+ Rating on INR4.5MM Cash Loan -------------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities of P.A.S. Petro Product (PAS) at 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.5 CRISIL B+/Stable (Reaffirmed) Foreign Letter of Credit 8.0 CRISIL A4 (Reaffirmed) Foreign Letter of Credit 4.0 CRISIL B+/Stable (Reaffirmed) CRISIL had upgraded its long term rating as on 7th May 2018 to 'CRISIL B+/Stable' from 'CRISIL B/Stable', while reaffirming its short term rating at 'CRISIL A4'. The upgrade of rating reflected 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 Weakness * 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. PARAS FOODS: CRISIL Migrates D Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Paras Foods (PF) for obtaining information through letters and emails dated April 12, 2018 and April 18, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating; Rating Migrated) Term Loan 4 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Paras Foods. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Paras Foods 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 Paras Foods to 'CRISIL D Issuer not cooperating'. Established in 2003 as a partnership between Mr. Ujwal Pagariya, Mr. Ulhas Pagaria, and Mr. Umesh Pagaria, PF, based in Nagpur (Maharashtra) is a wholesale trader of agricultural products. PATIALA COTSPIN: Ind-Ra Maintains BB+ Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Patiala Cotspin 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 actions are: -- INR70 mil. Fund-based limits maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; -- INR14.2 mil. Non-fund-based limits maintained in non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; -- INR232.31 mil. Term loan maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR45 mil. Proposed term loan maintained in non-cooperating category with Provisional IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Proposed fund-based limits maintained in non- cooperating category with Provisional IND BB+ (ISSUER NOT COOPERATING) /Provisional IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 9, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2010, PCL manufactures yarn. PRAKASH INDUSTRIAL: CRISIL Reaffirms B Rating on INR10MM Loan ------------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the long term bank facilities of Prakash Industrial Infrastructure Private Limited (PIIPL) at 'CRISIL B/Stable'. The rating on the INR29.5 crore bank facilities has been withdrawn at the client's request and on receipt of a no-dues certificate from the bankers as the loans have been fully repaid. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8.5 CRISIL A4 (Withdrawn) Cash Credit 10.0 CRISIL B/Stable (Reaffirmed) Drop Line Overdraft Facility 10.0 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 1.0 CRISIL B/Stable (Reaffirmed) The rating continues to reflect sector and geographical concentration in revenue profile and small scale of operations.The above mentioned weaknesses are partially offset by the strong experience of the promoters in the civil construction segment. Key Rating Drivers & Detailed Description Weaknesses * Sector and geographical concentration in revenue profile: Majority of revenue comes from construction of buildings in Maharashtra. The company has limited experience in other infrastructure activities such as dams, irrigation projects, roads, and bridges. * Small scale of operations: With revenue of INR38.5 crore for fiscal 2017, scale remains modest. Modest scale of operations precludes benefits arising from economies of scale. Further, intense competition results in competitive pricing. Strength * Experience of management: The company's promoter, Mr. Dinesh Agrawal, has over 25 years of experience in the civil construction segment, resulting in strong client referrals and track record of timely completion of projects. He is assisted by a team of experienced civil construction professionals. Outlook: Stable CRISIL believes PIIPL will continue to benefit over the medium term from the extensive experience of its promoter. The outlook may be revised to 'Positive' in case of ramp-up and diversification of operations, while maintaining operating margin, and if liquidity improves. The outlook may be revised to 'Negative' if large, debt-funded capital expenditure or stretch in working capital cycle weakens financial risk profile. Set up in 1975 as a partnership firm, Prakash Constructions, and reconstituted as a private limited company in 2006, PIIPL is promoted by Mr. Dinesh Agrawal and undertakes civil construction, primarily for industrial projects, in the private sector. RADHADAMODAR MULTIPURPOSE: CRISIL Reaffirms B+ Cash Credit Rating ----------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank facilities of Radhadamodar Multipurpose Coldstorage Private Limited (RMCSPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.75 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 0.8 CRISIL B+/Stable (Reaffirmed) Term Loan 1.2 CRISIL B+/Stable (Reaffirmed) The rating reflects the company's susceptibility to regulatory changes and to intense competition in the cold storage business in West Bengal, vulnerability to delays in payments by farmers because of adverse market conditions, and its modest networth and high gearing. These weaknesses are partially offset by the promoters' extensive experience in the cold storage industry and above-average debt protection metrics. Key Rating Drivers & Detailed Description Weakness: * Susceptible to regulatory changes and intense competition in the cold-storage industry in West Bengal: The potato cold storage industry in West Bengal is regulated by the West Bengal Cold Storage Association. Rent as well as marketing, drying, and insurance changes are fixed by the association. Fixed rental limits RMCSPL's ability to generate profits based on its strengths and geographic advantages. Furthermore, the cold storage segment is fragmented. Hence, players have limited bargaining power and offer discounts to ensure healthy utilisation of their storage capacity. * Vulnerability to delays in payments by farmers because of adverse market conditions: RMCSPL provides loans to farmers against the stored products. In the event of adverse market trends, farmers do not find it profitable to pay the rental and interest charges along with loan obligation, and hence, do not retrieve potatoes from cold storages. Thus, the company is vulnerable to delays in payments by farmers. * Modest networth and high gearing: Networth was INR4.11 crore as on March 31, 2017. On account of muted accretion to reserves, the networth is expected to be around INR4.7 Cr as on 31st March, 2018. Gearing was high at 1.03-3 times over the four fiscals through 2017. The gearing is expected to improve over the medium term with gradual repayment of term loan. Strengths * Promoters' extensive industry experience: RMCSPL is promoted by the West Bengal-based Pal family, and its promoters have been in the business for around a decade. Their longstanding associations with farmers and traders have enabled the company to ensure healthy utilisation of its storage capacity for potatoes. * Comfortable debt protection metrics: High operating profit has led to comfortable debt protection metrics, with interest coverage at 3.20 times and net cash accrual to total debt ratio at 0.25 time for fiscal 2017 and estimated to be at around 4 times and 0.43 time for fiscal 2018. The interest coverage should remain comfortable over the medium term in the absence of significant, debt funded capital expenditure (capex) plan or incremental working capital limit. Outlook: Stable CRISIL believes RMCSPL will continue to benefit from the extensive experience of its promoters in the cold storage business. The outlook may be revised to 'Positive' if cash accrual increases and working capital management improves. The outlook may be revised to 'Negative' if delays in repayment by farmers, considerably low cash accrual, or significant debt- funded capex, leads to deterioration in the financial risk profile and liquidity. Incorporated in 2011, RMCSPL provides cold storage facility to potato farmers and traders in Hooghly (West Bengal). Mr. Goutam Kumar Pal, Mr. Dilip Kumar Pal, Mr. Anath Bandhu Pal, and Mr. Sutapa Pal are directors of the company. Operations are primarily managed by Mr. Dilip Kumar Pal and Mr. Goutam Kumar Pal. RAJASTHAN FASTENERS: CRISIL Moves D Rating to Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Rajasthan Fasteners Private Limited (RFPL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .25 CRISIL D (Issuer Not Cooperating; Rating Migrated) Cash Credit 2.00 CRISIL D (Issuer Not Cooperating; Rating Migrated) Foreign Bill 3.00 CRISIL D (Issuer Not Purchase Cooperating; Rating Migrated) Foreign Letter of Credit .30 CRISIL D (Issuer Not Cooperating; Rating Migrated) Packing Credit 8.00 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Rajasthan Fasteners Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Rajasthan Fasteners 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 Rajasthan Fasteners Private Limited to 'CRISIL D/CRISIL D Issuer not cooperating'. RFPL, incorporated on 1998 and based in Jaipur, manufactures slotted dowell spring pins, disc springs, spiral coiled springs, and other products used in motor vehicles and their engines. The company's directors are Mr. Neelmani Jain, Mr. Prasann Mal Lodha, and Mr. Binod Kumar Jain. RENEWSYS INDIA: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Renewsys India Private Limited's (RIPL) Long-Term Issuer Rating of 'IND BB+'. The Outlook was Stable. The instrument-wise rating actions are: -- The IND BB+ rating on the INR280 mil. Long-term loan due on August 2022 are withdrawn; -- The IND BB+ rating on the INR100 mil. Fund-based facilities are withdrawn; and -- The IND BB+ rating on the INR150 mil. Non-fund-based facilities are withdrawn. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for RIPL. COMPANY PROFILE RIPL was established in 2014. The company manufactures different solar panel components such as EVA sheet, back sheets, solar module, cells, etc. RISHIKA COTTONS: CRISIL Migrates B+ Rating to Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Rishika Cottons Private Limited (RCPL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 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 Rishika Cottons Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Rishika Cottons 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 Rishika Cottons Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2008 in Hyderabad and promoted by Mr. Ajay Agarwal and his brother, Mr. Vijay Agarwal, RCPL manufactures cotton sarees and dress materials. ROMEGA FOAM: CRISIL Cuts Rating on INR6.5MM Cash Loan to D ---------------------------------------------------------- CRISIL has been consistently following up with Romega Foam Private Limited (RFPL) for obtaining information through letters and emails dated January 20, 2017, and February 10, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.5 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL B/Stable Issuer Not Cooperating') Letter of Credit 2.5 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL A4 Issuer Not Cooperating') Long Term Loan 1.0 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL B/Stable Issuer Not Cooperating') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RFPL. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for RFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower.' CRISIL has downgraded its ratings on the bank facilities of RFPL to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. The downgrade reflects delays by the company in servicing debt. CRISIL had discussion with the bank, which has confirmed the delay in repayment. RFPL, incorporated in 1994 by Mr. Ninan Verghese and Ms. Sheeba Ninan, manufactures polyurethane foam, convoluted sheets, polyurethane foam rolls, bonded foam, contour sheets, antistatic foam etc. in its manufacturing facilities in Puducherry (Tamil Nadu). All the products manufactured are customised for customers. SAMBHAV SHELTERS: ICRA Assigns B+ Rating to INR30cr LT Loan ----------------------------------------------------------- ICRA Ratings has assigned the long-term rating of [ICRA]B+ to the INR30.00-crore fund-based working capital facility of Sambhav Shelters. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term-Fund- based/ CC 30.00 [ICRA]B+ (Stable) assigned Rationale The assigned rating is constrained by the significant market risks faced by the firm since just about ~38% of the total area has been sold till March 31, 2018. The rating is also constrained by moderate execution risk as only 61% of the total project cost has been incurred till date. Furthermore, the rating takes into consideration the moderate funding risk with advances from customers forming a considerable portion of the total funding. ICRA also notes the risk of capital withdrawal inherent in the partnership firm. However, the assigned rating favorably factors in the extensive experience of the promoters spanning over 20 years in the real estate industry. ICRA also notes the favorable location of the project with good connectivity and adequate social and physical infrastructure. Outlook: Stable ICRA expects Sambhav Shelters to receive significant cash flows once the project nears completion and customers get possession of units. The outlook may be revised to Positive if the company is able to complete the project within the stipulated time without any cost over-runs and healthy bookings are witnessed in it. However, the outlook may be revised to Negative, if cash flows are affected by significant slowdown in sales for the remaining units. Key rating drivers Credit strengths Favourable location of the project with good connectivity and presence of social and physical infrastructure: The project is located at Kalbadevi in South Mumbai and enjoys good social infrastructure with various reputed hospitals and education institutes in the vicinity. Furthermore, the project draws from its advantage of being near various retail and entertainment centres. The project also enjoys good connectivity with mass transit terminals as well as the airport. Experienced promoters with more than 20 years of experience in the real estate industry: The firm is a part of the Vibrant Group, which has been in the construction and real estate sector for more than two decades. The Group has developed nearly 9 lakh sq. ft. of real estate projects till date. Credit challenges Significant market risk as only ~38% of the total area has been booked since the project launch: The project was launched in April 2014, and ever since, only 38.41% of sales were achieved till March 31, 2018. Thus, the sales velocity has been very low at 368 sq. ft. per month, which poses significant market risk. Moderate execution risk: The project faces moderate execution risk with significant construction work still pending. The total cost of the project is estimated to be INR117.90 crore, out of which only INR72.02 crore has been incurred as of March 31, 2018. Moderate funding risk: Only ~61% of the total budgeted funding has been brought in as of March 31, 2018, along with advances from customers, which remain contingent upon timely sales and collection of receivables. Customer advances contributed ~48% to the budgeted funding, which is a considerable share, thus exposing the project to moderate funding risk. Risk of capital withdrawal inherent in the partnership firm: Given Sambhav Shelter's constitution as a partnership firm, it is exposed to discrete risks including the possibility of withdrawal of capital by the partners and the risk of dissolution of the firm upon the death, retirement or insolvency of the partners. Sambhav Shelters is a partnership firm established in 2006. It is a part of the Vibrant Group, which has been in the real estate industry over the last two decades. The firm is involved in the construction of the residential project, 'Bayvue', which is located at Chira Bazaar in Kalbadevi, Mumbai. It is a redevelopment project consisting of a single tower with two wings, East and West. The total area of the project is 46,025 sq. ft., comprising 62 apartment units. In FY2017, the firm reported a net profit of INR0.07 crore on an operating income of INR0.01 crore. SHIVA STRUCTURES: Ind-Ra Migrates BB LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shiva Structures Private '(SSPL) 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: -- INR75 mil. Fund-based working capital limit migrated to Non- Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; -- INR15.09 mil. Term loans due on June 2017 migrated to Non- Cooperating Category with IND BB(ISSUER NOT COOPERATING) rating; and -- INR180 mil. Non-fund-based working capital limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 11, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Aurangabad-based SSPL undertakes civil construction works such as irrigation projects, dams, canals, minor irrigation tank, site excavation, site development, pipeline project, roads, building constructions, industrial sheds, tunnel, barrages, roads and other allied works. The company is registered as a Class 1A contractor with Maharashtra's Public Work Department and an approved contractor for various government and civil bodies. SHREE VENKATESHWARA: CRISIL Moves B Rating to Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Shree Venkateshwara Infrastructure Private Limited (SVIPL) for obtaining information through letters and emails dated February 14, 2018 and March 31, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 4 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Overdraft 3.5 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Long Term .5 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 Shree Venkateshwara Infrastructure Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Shree Venkateshwara Infrastructure Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Shree Venkateshwara Infrastructure Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in February 2003 in Navi Mumbai and promoted by Mr. R Mani Raju, SVIPL constructs roads, drains, and small bridges, and undertakes other civil contract work for The City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) and Navi Mumbai Municipal Corporation (NMMC). The company is a 'Class 1A' contractor for these clients and is eligible to bid directly for large contracts without a cap on contract value. SHREEDHAR MILK: ICRA Maintains D Rating in Not Cooperating Cat. --------------------------------------------------------------- ICRA Ratings said the rating for the INR20.00 crore Non- Convertible Debenture programme of Shreedhar Milk Foods Limited (SMFL) continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] D ISSUER NOT COOPERATING". The rating takes into account continued delays in debt servicing by the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-Convertible 20.00 [ICRA]D ISSUER NOT Debentures (NCD) COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category SMFL had the interest payment on its listed INR20.0 crore NCD programme (ISIN: INE545V08017) falling due on May 13, 2018. There has been no receipt of information from the rated entity and Debenture Trustee ["DT"] regarding timely servicing of debt, and non-availability of debt servicing disclosure(s) on recognized stock exchange as mandated under Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015. ICRA in accordance with SEBI Circular on 'Monitoring and Review of Ratings by Credit Rating Agencies (CRAs'), dated June 30, 2017 has sought confirmation from Shreedhar Milk Foods Limited on debt servicing for the instruments detailed below, however no response has been received as yet: As part of its process and in accordance with its rating agreement with Shreedhar Milk Foods Limited, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths Healthy scale-up in operations during recent years: SMFL's revenues have grown at a CAGR of 39% over FY2012-FY2017 aided by capacity expansion, introduction of new products and higher realizations Experienced promoters and professional management: Promoter have good experience in the dairy industry, and the company has also inducted professional management to pursue plans of scaling-up direct marketing business Credit challenges Delay in debt servicing owing to liquidity pressures: SMFL has delayed on timely servicing of its term loans and nonconvertible debenture programme, and cash credit facilities have been over- utilised, highlighting liquidity pressures Credit metrics expected to remain weak due to ongoing debt-funded capital expenditure requirements: SMFL has been undertaking debt-funded capital expenditure, which coupled with increased working capital debt on its books due to scale-up in operations, has resulted in high gearing levels and weak coverage indicators for the company. Weak profit margins due to B2B exposure: SMFL's business profile is primarily 'B2B' which limits its bargaining power and ability to improve margins High product concentration risks: Revenue-mix characterised by high product concentration risks such as skimmed milk powder (SMP) and ghee, both of which exhibit high price volatility and face high competition. Incorporated in 2005, Shreedhar Milk Foods Limited (SMFL) is a medium-sized dairy processing company engaged in processing liquid milk and manufacturing various milk-based products such as skimmed milk powder (SMP), pure ghee, white butter, cottage cheese, curd and sweets. The company's processing facility is located at Joya in Uttar Pradesh, with a processing capacity of 14.30 lakh litres per day (LLPD). With a product-mix concentrated in favour of SMP, pure ghee and related derivatives, SMFL largely caters to the bulk/institutional segment under its brand, 'Shreedhar', through its network of C&F agents. A small proportion of the company's business is also generated from contract manufacturing operations for players like Mother Dairy and COMFED. While a majority of SMFL's business comes from the bulk segment, it is currently in the midst of expanding its direct marketing business, especially for poly-pack milk. To achieve this, it has recently started procuring milk directly from villages by setting up Village Level Collection Centres (VLCCs) and Milk Chilling Centres (MCCs). SHREYANS OILS: Ind-Ra Retains B Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shreyans Oils 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: -- INR60 mil. Fund-based limit maintained in non-cooperating category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; -- INR45 mil. Proposed fund-based limit maintained in non- cooperating category with Provisional IND B(ISSUER NOT COOPERATING)/Provisional IND A4(ISSUER NOT COOPERATING) rating; and -- INR45 mil. Proposed term loan maintained in non-cooperating category with Provisional IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 15, 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 1992, Shreyans Oils manufactures crude rice bran oil and de-oiled rice bran. SHRIRAM PROPERTIES: CRISIL Moves C Rating to Not Cooperating ------------------------------------------------------------ CRISIL has been consistently following up with Shriram Properties and Infrastructure Private Limited (SPIPL) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL C (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 Shriram Properties and Infrastructure Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Shriram Properties and Infrastructure Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Shriram Properties and Infrastructure Private Limited to 'CRISIL C Issuer not cooperating'. SPIPL, incorporated in 2006, is a special purpose vehicle that was formed as a joint venture between SPPL and SUN-Apollo. SPIPL has developed an IT park at the special economic zone at Perungalathur in Chennai (Tamil Nadu). The company has developed total area of 1.6 million square feet in the business park, which has been fully occupied. SORT INDIA: ICRA Puts 'D' Rating Under Review --------------------------------------------- ICRA Ratings has placed the rating of Sort India Enviro Solutions Limited under review due to non receipt of information from the rated entity and Debenture Trustee ["DT"] regarding timely servicing of debt, and non-availability of debt servicing disclosure(s) on recognized stock exchange as mandated under Securities Exchange Board of India(Listing Obligation and Disclosure Requirements) Regulations 2015. ICRA in accordance with SEBI Circular on 'Monitoring and Review of Ratings by Credit Rating Agencies (CRAs'), dated June 30, 2017 has sought confirmation from Sort India Enviro Solutions Limited on debt servicing for the instruments detailed below, however has not received any response as yet: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible Debentures 8.00 [ICRA]D ISSUER NOT COOPERATING ICRA is monitoring the rating for material developments and would come out with a rating action if required and disclose the same via Press release on its website. SOUTHERN AUTO: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Southern Auto Products' (SAP) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating actions are: -- INR48.44 mil. Term loan (Long-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR103 mil. Fund-based working capital limit (Long- term/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR60 mil. Non-fund-based limit (Short-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 downgrade reflects delays in debt servicing by SAP, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in a rating upgrade. COMPANY PROFILE Bangalore-based, SAP was established as a partnership firm in 1987 by Mr. Deepak Malik, Mr. H P Malik and Ms. Madhu Malik. It processes glass to make laminated, toughened and insulated glass for architectural use. SRI CHAITANYA: CRISIL Migrates B+ Rating to Not Cooperating ----------------------------------------------------------- CRISIL Ratings has been consistently following up with Sri Chaitanya Rice Mill - East Godavari (SCRM) for obtaining information through letters and emails dated February 09, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 16 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 Sri Chaitanya Rice Mill - East Godavari. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sri Chaitanya Rice Mill - East Godavari is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Sri Chaitanya Rice Mill - East Godavari to 'CRISIL B+/Stable Issuer not cooperating'. Set up in 2004 as a partnership firm by Mr. Ramesh Reddy and his family members, SCRM and processes paddy into rice, and generates by-products such as broken rice, bran, and husk. Its milling unit is in East Godavari District (Andhra Pradesh). SRI SUNFLOWER: CRISIL Moves D Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Sri Sunflower Educational Society (SSES) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 12 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale CRISIL has been consistently following up with Sri Sunflower Educational Society (SSES) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. 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. SSES was set up in 2003 by Mr. M D V S R Punnam Raju and his family members. It operates an engineering college in Krishna (Andhra Pradesh). SUNIL HITECH: ICRA Lowers Rating on INR300cr Term Loan to B ----------------------------------------------------------- ICRA Ratings has downgraded its rating on the proposed facilities of Bodhre Dhule Highway Private Limited (BDHPL): Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed Term Loan 300.00 Provisional [ICRA]B (Negative); Downgraded from Provisional [ICRA]BB (Negative) Proposed Non-fund 108.00 Provisional [ICRA]B based limits (Negative); Downgraded from Provisional [ICRA]BB (Negative) Material Event Considerable weakening in the credit profile of Sunil Hitech Engineers Limited (SHEL), the sponsor of Bodhre Dhule Highway Private Limited (BDHPL). The stretched liquidity position of SHEL has led to delays in meeting SHEL's debt servicing obligations. Impact of the Material Event BDHPL's rating has been downgraded to Provisional [ICRA]B (Negative) from Provisional [ICRA]BB (Negative) owing to heightened funding risk for the project following the further deterioration of the credit profile of sponsor. Rationale The current adverse development at SHEL may impact its ability to tie-up project debt and infuse equity in a timely manner. Also, any significant delay in fulfilling the conditions precedent, which among other things, includes debt tie-up and equity infusion, may lead to the termination of the Concession Agreement (CA). The ratings are further constrained by the tight liquidity position of SHEL, which could also have an adverse impact on its performance as EPC contractor for BDHPL thereby resulting in time and cost over-runs. The rating, however, favorably takes into account the hybrid annuity-based nature of the project being undertaken by the company with 40% of the project cost being funded through payment from the project authority. The rating also considers the stable revenue stream post-commissioning with 60% of the remaining project cost being paid out as annuity (adjusted for inflation) over the term of the concession. The company will also be reimbursed the operation and maintenance (O&M) expenditure on an inflation-adjusted basis to be paid along with the regular semi- annual annuities. Outlook: Negative ICRA believes the deterioration in the credit profile of the sponsor could have a bearing on its ability to infuse equity and tie-up project debt. The outlook may be revised to 'Stable' if BDHPL is able to achieve financial closure along with timely equity infusion from SHEL. Key rating drivers Credit strengths Benefits of executing project under Hybrid-Annuity Model (HAM): For road projects awarded under HAM, 40% of the project cost will be funded by NHAI grant payments based on milestone completion. During the operational period, 60% of the project cost would be received in the form of semi-annual annuity, along with interest on outstanding annuities, from NHAI wherein the risk of any disruption in the annuity payments is low given the strong counter-party. The grant to be received from the authority during the construction period will be adjusted for inflation thus, mitigating the inflation risk during construction stage. The concessionaire will also be reimbursed the operation and maintenance (O&M) expenditure on an inflation-adjusted basis to be paid along with the regular semi-annual annuities. Credit challenges Weakening credit profile of sponsor: Given the deterioration in the credit profile of sponsor, its ability to bring-in equity and achieve financial closure may get impacted. Timely funding of the project would remain critical as failure to achieve the same may lead to termination of the CA. High project implementation risk: The project remains exposed to implementation risk given the construction is yet to commence pending receipt of appointed date. While the project has ~93% right of way available and company has started mobilising resources onsite, the current liquidity stress of sponsor may have an adverse impact of its ability to execute the project as an EPC contractor. Exposed to interest rate risk: The projects cash flows and profitability remains exposed to interest rate risk given the floating nature of the interest rate. BDHPL is a special purpose vehicle (SPV) sponsored by Sunil Hitech Engineers Limited and incorporated on March 17, 2017 to implement construction of four/six laning of Bodhre (km 390.000) to Dhule (km 452.800) section of NH-211 (new NH No. 52) in Maharashtra under phase NHDP-IV through the Hybrid Annuity Model. The concession agreement between BDHPL and NHAI was signed on July 18, 2017. The bid project cost is INR982 crore with construction period of 910 days and operation period of 15 years after achieving commercial operation date. The annuity and interest on outstanding annuities will be received on a semi- annual basis along with the O&M receipts, with first year O&M receipt of INR3 crore to be adjusted for inflation from bid date. SYNERGY AGRI: CRISIL Assigns B- Rating to INR2.75MM LT Loan ----------------------------------------------------------- CRISIL Ratings has revoked the suspension of its rating on the long-term bank facility Synergy Agri Products Private Limited (SAPPL) and has assigned its 'CRISIL B-/Stable' rating to the facility. CRISIL had suspended the rating on May 29, 2013, as the company had not provided the information required for a rating review. SAPPL has now shared the requisite information enabling CRISIL to assign a rating to its facility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2.25 CRISIL B-/Stable (Assigned; Suspension Revoked) Proposed Long Term 2.75 CRISIL B-/Stable (Assigned; Bank Loan Facility Suspension Revoked) Term Loan 7 CRISIL B-/Stable (Assigned; Suspension Revoked) The rating reflects the company's modest scale of operations, susceptibility of operating margin to adverse government regulations and raw material price volatility and intensive working capital requirement and weak financial risk profile. These rating weakness are partially offset by extensive experience of the promoters in the plant and tissue cultivation industry. Key Rating Drivers & Detailed Description Weakness: * Modest scale of operations: SAPPL's scale of operations is modest, as reflected in its revenues of INR5.10 crores in fiscal 2017 and is estimated to remain at similar levels in fiscal 2018 (at around INR5.2 crores) in spite of being in operations for more than a decade. CRISIL believes that SFPL will remain a small player and will be able to scale up operations only gradually. * Susceptibility of operating margins to adverse government regulations and raw material price volatility: The rice industry's profitability margins are highly correlated with fluctuations in raw material prices. Raw material costs accounted for around 10 per cent of SAPPL's operating income in fiscal 2017. Also the adverse government regulations results in volatility in operating margins. * Intensive working capital requirements: SAPPL's business is moderately working-capital-intensive, as reflected in its gross current asset (GCA) days of 415 days as on March 31, 2017 and at around 400 days in fiscal 2018; The high GCA days are driven by the company's' large inventory of around 404 days and receivables of 132 days. * Weak Financial Risk Profile: Financial risk profile of the company is marked by small networth of INR6.71 crores, high gearing of 1.70 times as on March 31, 2017. Debt protection metrics remained average with interest coverage and net cash accrual to total debt (NCATD) of 1.49 times and 0.06 times respectively in fiscal 2017. Strengths: * Promoters' extensive industry experience in the industry: SFPL was promoted by Mr. Francis Anthony and Mr. Cecil Anthony. They are the directors of the company having more than two decades of experience in the growing of plants and tissue culture activities. Promoter's extensive business experience would continue to support the business operations of the company. The promoters' long track record in the industry has enabled them to establish relationships with customers. CRISIL believes that the company shall continue to be benefited from the promoter's extensive business and industry experience. Outlook: Stable CRISIL believes that SAPPL will benefit over the medium term from the extensive industry experience of its promoter. The outlook may be revised to 'Positive' if the firm's revenues and profitability increase substantially leading to an improvement in its financial risk profile or in case of significant infusion of capital into the firm to meet its working capital requirements. Conversely, the outlook may be revised to 'Negative' if the firm undertakes aggressive, debt-funded expansions, or if its revenues and profitability declines substantially or if the partners draws capital from the firm leading to deterioration in its financial risk profile. SAPPL, based in Durgapur, is engaged in propagation and growing of plants and tissue culture activities. SAPPL was started on 3rd March, 2004 as 'Synergy Bio-technologies Limited' and was subsequently renamed. TEE VENTURES: ICRA Reaffirms B Rating on INR8cr LT Loan ------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating of [ICRA]B assigned to the INR8.00-crore long-term fund-based limits of Tee Ventures (India) Private Limited. ICRA has also reaffirmed the long-term rating at [ICRA]B and short-term rating at [ICRA]A4 (pronounced ICRA A four) to the INR3.50-crore unallocated limits of the company. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund Based TL 8.00 [ICRA]B (Stable) reaffirmed Long term/Short Term-Unallocated 3.50 [ICRA]B (Stable)/[ICRA]A4 Reaffirmed Rationale The assigned ratings take into account the limited experience of TVIPL's promoters in the golf ball manufacturing sector. The company has, however, recruited technically qualified professionals with vast experience in the industry, which provides some comfort. The ratings are also constrained by high levels of market risk associated with the business, coupled with possible stress on the debt servicing ability in case cash flows are lower-than-anticipated. Furthermore, ICRA also notes that since TVIPL is a new player in the industry, it faces competition from established international golf ball manufacturers, which limits its pricing flexibility. The ratings also take into consideration the exposure of the firm's profitability margins to fluctuations in foreign exchange rates since majority of its sales would be in the form of exports. The assigned ratings, however, favorably factor in the advantages derived from the location of the manufacturing unit with proximity to various ports, assuring uninterrupted supply of raw materials that are to be largely imported, along with savings in freight cost and reduced lead time. The ratings also take into account the low execution risk associated with the project, given that 100% of the project cost has been incurred as on January 31, 2018. Outlook: Stable Given the stiff competition that the company faces from global players, its capacity utilisations are expected to initially remain low and scale up gradually. The outlook may be revised to 'Positive', if the company registers substantial revenues, aided by high capacity utilisations while maintaining the immunity of its margins to fluctuations in raw material prices and foreign exchange rates. The outlook may be revised to 'Negative' if the company is not able to generate adequate cash flows for debt servicing, given the uncertainty related to off-take levels. Key Rating Drivers Credit strengths * Advantages of the proposed unit on account of proximity to ports and other benefits available after commencement: The manufacturing unit of TVIPL is located in Sayakha GIDC (Gujarat) in proximity to the ports at Dahej (40 km) and Hazira (120 km). Since the company will largely be importing its raw material and exporting its finished products, proximity to these ports will provide logistics convenience. * Execution risk remains low with ~100% of the project cost incurred as on March 31, 2018: The entire project cost of INR30.39 crore has been incurred as on January 31, 2018 and the company has already started its commercial operations from March 2018. Hence the execution risk remains low. Credit challenges * Limited experience of the promoters in golf ball manufacturing; however, recruitment of experienced professionals provides comfort: Though the promoters are professionally qualified, their experience in the golf ball-manufacturing industry remains limited. The company has, however, recruited technically qualified professionals with vast experience in the industry, which provides some comfort. * High levels of market risk associated with the business; uncertainty related to off-take levels: The firm is yet to achieve full-fledged commercial operations while the term loan repayment has already commenced from October 2017, thus exposing the company to re-financing risk in case cash flows are lower than anticipated. In such a case, the promoters' ability to bring in unsecured loans for debt servicing will be critical. * Competitive pressure continues to remain high, given the presence of large players in the industry internationally: Though TVIPL is currently the only golf ball manufacturing company in India, it faces competition from the established manufacturers located in other countries. Since the company is a relatively new entrant in the industry, its pricing flexibility in the first few years will be limited. * Vulnerability of profitability to any adverse fluctuations in foreign exchange rates: Since the firm is targeting international customers, majority of its revenues would be in the form of exports and hence it would have a high exposure to fluctuations in foreign currency exchange rates. However, a natural hedge from imports mitigates the risk to an extent. Tee Ventures (India) Private Limited (TVIPL) was incorporated in March 2011 for manufacturing golf balls. The company has completed establishing its manufacturing unit at Sayakha GIDC in Gujarat. The 15,000 sq. m. manufacturing unit has an installed production capacity of 4.32 million packs of a dozen golf balls p.a. translating into 12,000 golf balls per day. The firm did not report any revenues and profits for FY2016 and FY2017 as the commercial production has commenced from March 2018. TRENT CHEMICAL: Ind-Ra Lowers Long-Term Issuer Rating to BB+ ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Trent Chemical Industries' (TCI) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB-'. The Outlook is Stable. instrument-wise rating action is: -- INR75 mil. Fund-based working capital limits downgraded with IND BB+/Stable rating; -- INR410 mil. Term loans due on June 2021 downgraded with IND BB+/Stable rating; and -- INR55 mil. Non-fund-based working capital limits downgraded with IND A4+ rating. KEY RATING DRIVERS The downgrade reflects TCI's weaker-than-expected operating performance in FY18, according to the provisional financials. The company achieved revenue of INR766 million in FY18 (FY17: INR331million) and incurred EBITDA losses for both the years. This was on account of a slower-than-expected ramp-up in capacity utilization and higher raw material costs. According to the management, the company failed to ramp the capacities in 1HFY18 due to lack of adequate manpower. The capacity utilization was 65%-70%, at which fixed cost could not be absorbed. Additionally, the raw material (naphthalene) cost was 2%-3% higher than projected, which led to EBITDA losses of INR87 million in FY18 (FY17: negative INR26 million). Due to the losses, associate concerns and promoters had infused funds of close to INR120 million in FY18 to ensure timely debt repayment. Starting January 2018, the production levels have picked up with the hiring of new production head, while the raw material prices have slightly lowered. Consequently, TCI is likely to turn profitable in FY19; however, the credit profile will remain modest. The ratings continue to reflect TCI's strong strategic and operational linkages with group entities Meghmani Dyes and Intermediates LLP, Meghmani Industries Ltd and Tapasheel Enterprises (together referred to as Meghmani group entities). TCI has been set up to fulfill the group entities' 100% requirements of H acid and di-amino stilbene disulfonic acid. In the absence of TCI, the group entities would face a significant risk associated with the supply and pricing of these products. The ratings factor in the strong credit profiles of the group entities, which are among the bigger dyes and pigment manufactures in India, which lowers counterparty risks, and their ability to provide timely support for debt servicing. The ratings also factor in more than four decades of experience of the promoters in the chemical industry. RATING SENSITIVITIES Positive: A significant and sustained improvement in the EBITDA margins and credit profile will be positive for the ratings. Negative: Any further deterioration in the EBITDA margins and/or absence of timely support from the associate concerns could be negative for the ratings. COMPANY PROFILE TCI was established in September 2014 to manufacture H acid and di-amino stilbene disulfonic acid, which are used as raw materials for manufacturing dyes and pigments. The company now also manufactures di-nitro salicylic acid which is a feedstock for manufacturing di-amino stilbene disulfonic acid. The firm was formed as the backward integration of Meghmani group wherein 70%- 75% of production is sold to the three group entities. Meghmani group has been selling dyes and pigments under the brand names Reactobond and Mega white across the world for over three decades. UDDYAM CEMENT: CRISIL Reaffirms 'B' Rating on INR14MM LT Loan ------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the long-term bank facilities of Uddyam Cement Private Limited (UCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 14 CRISIL B/Stable (Reaffirmed) The rating factors in demand and implementation risks related to the project, and weak financial risk profile. These weakness are partially offset by the promoters' extensive experience in the cement trading industry, and their funding support. Key Rating Drivers & Detailed Description Weaknesses * Demand and implementation risks: Operations were expected to commence in August 2017, but are now likely to begin in June 2018. Furthermore, demand risks, owing to intense competition, persist. Any further delay in commencement of operations, and lower-than-expected offtake may pressurise liquidity. * Weak financial risk profile: Networth was low at INR84 lakh as on March 31, 2018. Gearing was high at 20.27 times, due to the large debt contracted for the project. Debt protection metrics may remain weak because of high gearing and low cash accrual. Strengths * Extensive experience of the promoters: Benefits from the two- decade-long experience of the promoters, their keen grasp over industry dynamics, and healthy relationships with clients and suppliers should support business risk profile. Moreover, the company will primarily manufacture cement, which is used extensively in construction, industrial application, and real estate sectors. * Funding support: Unsecured loans (Rs 2.15 crore as on March 31, 2018) extended by the promoters and family are interest-free in nature, and should provide financial flexibility. Outlook: Stable CRISIL believes UCPL will benefit from the promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if improvement in liquidity, on the back of higher- than-expected revenue and profitability, strengthens cash accrual. The outlook may be revised to 'Negative' if further delay in commencement of operations, or significantly lower-than- expected revenue or margin weakens financial risk profile, particularly liquidity. Incorporated in 2013 by Mr. Manoj Yadav, Mr. Alok Agrawal, and Mr. Alok Srivastava, UCPL is setting up a clinker-grinding unit to manufacture Portland Pozolana Cement (PPC). The facility will be in Chunar, Mirzapur (Uttar Pradesh), and will have an installed capacity of 216,000 metric tonne per annum. V.R.N. ENTERPRISES: CRISIL Moves D Rating to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has been consistently following up with V.R.N. Enterprises Private Limited (VRN) for obtaining information through letters and emails dated February 9, 2018 and March 31, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of V.R.N. Enterprises Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on V.R.N. Enterprises 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 facility of V.R.N. Enterprises Private Limited to 'CRISIL D Issuer not cooperating'. Set up in 2010, in Bengaluru Mr. Hemanth Kumar and Mr. Lalith Kumar, V.R.N trades in silk yarn and fabric. VM STAR: Ind-Ra Maintains B+ LT Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained V.M. Star'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 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. Foreign documentary bill purchase maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 3, 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 1993, V.M. Star is engaged in the trading of diamonds. YADAV TRACTOR: Ind-Ra Maintains 'B+' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Yadav Tractor Company'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: -- INR24.3 mil. Cash credit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR30 mil. Letter of guarantee maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 10, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Yadav Tractor Company is engaged in the sales, services and spares of Mahindra tractors. =============== M A L A Y S I A =============== 1MALAYSIA DEVELOPMENT: Unable to Repay Debt of Almost $7-Bil. ------------------------------------------------------------- Anuradha Raghu and Yudith Ho at Bloomberg News report that troubles at Malaysia's state investment company 1MDB Development deepened as its officials told the government the fund is insolvent and unable to repay debts that could amount to almost $7 billion over the next five years. 1MDB's directors said they had questioned $2.5 billion worth of purported investments held overseas and the company's management failed to supply proof of such holdings over the past two years, Bloomberg relates citing a finance ministry statement on May 23. Its former chief financial officer told the government in March the company wouldn't be able to service interest payments due in April and May, Finance Minister Lim Guan Eng said. Malaysia, under newly-elected Prime Minister Mahathir Mohamad, is trying to uncover the extent of alleged embezzlement or money laundering at 1MDB, set up by former premier Najib Razak in 2009 to attract foreign investment, Bloomberg notes. There are global criminal and regulatory probes as investigators attempt to trace if money flowed out through a complex web of opaque transactions and fraudulent shell companies to finance what the U.S. said were spending sprees by corrupt officials and their associates. "I have instructed that the Ministry of Finance take steps to appoint PwC to conduct a special position audit and review of 1MDB so that Malaysians would know the true financial state of affairs in 1MDB," Bloomberg quotes Mr. Lim as saying. "We would then be able to determine the cost of the shenanigans to the taxpayers." In April 2016, a Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions in 1MDB, Bloomberg recalls. The U.S. alleges a small coterie of Malaysians may have diverted more than $4.5 billion from the fund into personal accounts disguised to look like legitimate businesses, and kicked back some of those funds to officials. Singapore has punished banks over lapses related to 1MDB, seized hundreds of millions of assets and jailed bankers over the scandal. The company has consistently denied any wrongdoing and repeatedly said all its funds are fully accounted for, Bloomberg notes. 1MDB President Arul Kanda had previously said there is MYR31 billion (US$7.8 billion) of mostly long-term debt outstanding, down from a peak of MYR50 billion, while data compiled by Bloomberg shows MYR26.8 billion of bonds and interest payments are due by 2023. According to Bloomberg, Abu Dhabi's International Petroleum Investment Co. guaranteed two separate dollar-denominated bonds for 1MDB in 2012 in deals arranged by Goldman Sachs Group Inc. that raised $3.5 billion. Bloomberg says the bonds due in 2022 were the subject of a dispute in recent years on who's liable to make interest payments on the debt. The ownership on one of the issues isn't known because it was a private placement, while data compiled by Bloomberg shows there is no single investor that holds more than 5.1 percent of the bonds on the other set. In a settlement agreement with IPIC last year, 1MDB assumed the coupon and principal obligations for the bonds, and the company said it would meet the payments by cashing out on investment fund units that it owned, Bloomberg relays. Those are the same investments that 1MDB director Kamal Mohd Ali called "a scam," according to the finance ministry statement cited by Bloomberg. The revelations come after the finance minister said on May 22 that Malaysia's government debt has been inflated by 1MDB's borrowing and exceeds MYR1 trillion, according to Bloomberg. That was higher than previously disclosed by Najib's administration as it was masked by the way the accounts were reported, he said. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. The TCR-AP, citing The Wall Street Journal, reported on April 27, 2016, that the company defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). Asian Nikkei Review reported in June 2016 that Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund. ==================== N E W Z E A L A N D ==================== FLETCHER BUILDING: Cuts Deal With Bankers Amid Covenant Breaches ---------------------------------------------------------------- Gyles Beckford at Radio New Zealand reports that Fletcher Building has cut a new deal with its bankers, which will see it pay more for its lending and put the proceeds of asset sales immediately to paying back debt. According to the report, the agreement follows the company's breach of its lending arrangements caused by the big losses of its building and interiors business. This resulted in the gap between its income and its borrowing blowing out, and forced the company to raise new money through a share issue, sell assets, and renegotiate its banking arrangements, Radio NZ says. Radio NZ relates that among the terms of the new deal was a 1.25 percent rise in its interest rate for the next year, and using the proceeds of the sale of its Formica and roofing tiles businesses to repay debt. The report says Fletchers was also reducing its bank borrowing by about a quarter to NZ$925 million. Its overall gross borrowings will be NZ$1.79 billion with available total debt of NZ$2.7 billion. Radio NZ meanwhile reports that Fletcher Building's small retail shareholders have taken up less than two-thirds of the new shares they were entitled to in the recent offer. The company raised more than NZ$500 million from a share sale to big investment funds, and was looking to raise about NZ$230 million from its existing small shareholders, the report discloses. However, the company has raised only NZ$132 million, so the 20 million shares not taken up will be offered for sale to big investors at $4.80, Radio NZ notes. Headquartered in Penrose, New Zealand, Fletcher Building Finance Limited -- http://www.fletcherbuilding.com/-- is the holding company of the Fletcher Building group. The company's segments include Building Products, Steel, Distribution, Infrastructure, and Laminates & Panels. On July 2, 2007, the company acquired Formica Corporation. On August 3, 2007, the company acquired Fair Dinkum Homes and Sheds. On October 5, 2007, the company acquired Cameron Quarries. On February 1, 2008, the company acquired DVS Limited. On May 1, 2008, the company acquired Morinda Australia Pty Limited (trading as Garage World and Shed Boss). Fletcher Building's businesses operate at more than 300 sites around New Zealand, Australia, Finland, Slovenia, United Kingdom, Japan, Taiwan, among others. MAORI TELEVISION: Job Losses Expected Amid Financial Challenges --------------------------------------------------------------- Radio New Zealand reports that job losses may be on the way for Maori Television, Minister of Maori Development Nanaia Mahuta has indicated. Radio NZ relates that Ms. Mahuta said she received a letter from Maori TV's outgoing board chair Georgina te Heuheu about the financial challenges facing the network. Speaking at Parliament on May 22, Ms Mahuta said she did not know how many jobs could go -- with the details to be decided by the board, Radio NZ relays. "That's a level of operation detail which I don't have information on and it would be entirely inappropriate for me to comment. "There are other pressures impacting on the decisions that the board needs to make about its sustainability, declining viewership (and) some of the challenges around the current operational status." According to the report, new board chair Jamie Tuuta said at a select committee this month it was paramount Maori TV received appropriate funding to ensure it continued to be successful. The state-funded broadcaster has not had a production funding increase from Maori broadcasting agency Te Mangai Paho since 2004, the report says. Radio NZ relates that Ms Mahuta said the board was working on a strategy to move towards a sustainable television service. "At the heart of that is reo revitilisation and making sure Maori TV is a part of the new broadcasting delivery of a range of services that we know they need to be," Ms Mahuta, as cited by Radio NZ, said. ==================== S O U T H K O R E A ==================== * SOUTH KOREA: Credit Union Delinquency Ratio Rises at End March ---------------------------------------------------------------- Yonhap News Agency reports that credit unions, or member-owned financial cooperatives, saw their average delinquency ratio rise slightly at the end of March, government data showed May 24. The average delinquency ratio at credit unions, including Nonghyup and Suhyup banks, rose 0.21 percentage point from three months ago to 1.39 percent, Yonhap discloses citing data from the Financial Supervisory Service. The FSS said the slight rise in delinquency came after credit unions cleaned up their ailing assets toward the end of last year, Yonhap relays. Compared with a year earlier, the average delinquency ratio at credit unions fell 0.04 percentage point, it said. Financial authorities now require second-tier banks to set aside more loan-loss provisions in order to curb high-risk home lending, Yonhap notes. Yonhap adds that the tougher rule was applied to home loans by savings banks, Nonghyup and Suhyup banks, and other mutual savings banks that can charge more than 20 percent interest per annum. ================ S R I L A N K A ================ KOTAGALA PLANTATIONS: Fitch Affirms CC(lka) National LT Rating -------------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka-based Kotagala Plantations PLC's National Long-Term Rating at 'CC(lka)'. Fitch has also affirmed the National Rating on Kotagala's outstanding senior secured debentures at 'CC(lka)'. The affirmation reflects the company's continued weak liquidity profile despite improved revenue and EBITDA, asset disposals and restructuring of bank facilities over the previous 12 months. Kotagala had LKR27 million of unrestricted cash and no unutilised credit facilities as at end-March 2018 (FY18) to meet LKR671 million of short-term debt falling due in the next 12 months. There is a significant risk that Kotagala may not be able to meet its obligations as they fall due through internally generated cash flow. KEY RATING DRIVERS Continued Weak Liquidity: Fitch expects the company to continue facing high liquidity pressure in the next 12-18 months due to substantial debt maturities falling due starting 26 May 2018, when the first LKR250 million principal repayment of its LKR1 billion secured debenture falls due. The company holds little cash, does not have access to unutilised committed credit lines and is greatly constrained from generating positive free cash flow over the medium term due to losses from its rubber plantations and high debt-servicing costs. The company's efforts in FY18 to lower debt via asset disposals and debt restructuring have not led to a sustained improvement in its liquidity profile. Kotagala plans to meet its upcoming repayment by using the LKR100 million proceeds from the partial sale of its stake in Union Commodities (Private) Limited (Unicom) in March 2018, LKR55 million from the sale of old rubber trees as timber and its remaining cash reserves. It also aims to raise high-cost credit facilities from customers and has the option of using the debenture's sinking-fund balance of LKR161 million at end-March 2018 to meet any shortfall, if needed. Even if Kotagala makes the upcoming repayment, there is little visibility as to how it will meet its remaining debt obligations - including the second principal repayment due May 2019 - unless it operating performance improves significantly or upon third-party support or restructuring. High Refinancing Risk: Fitch believes Kotagala has high re- financing risk, as lenders are likely to be cautious given the plantation sector's volatility and the company's weak financial profile. Kotagala's ability to raise funds through asset disposals is also limited following the divestment of its only profitable subsidiary, Unicom. Furthermore, the company was unsuccessful in raising fresh equity through its rights issue in December 2017 beyond what its parent, Consolidated Tea Plantations Limited (CTPL), injected as part of its share. This means Kotagala will likely have to resort to expensive sources to refinance its debt, such as customer advance payments, which could further exacerbate its credit profile. Leverage to Remain High: Kotagala's leverage is likely to remain high in the medium term, as Fitch expects moderating commodity prices and continued operating cost increases to adversely affect its EBITDA generation. Kotagala's adjusted net leverage/EBITDAR ratio improved to 9.3x as at end-2017, from 16.5x in FY17 (FY16: 125.3x), mainly from higher global tea prices, which Fitch does not expect to be sustained. Volatile EBITDAR: Fitch expects tea and rubber sector profitability to be affected in the medium term by volatile end- market demand, lower labour productivity and cost pressure from periodic wage increases. Kotagala's tea segment has seen a strong rebound over the past nine months, helped by rising global prices. However, prices are likely to moderate over the medium- term with easing supply-side pressure. Fitch does not expect a reversal in rubber-sector operating losses in the next few years owing to lacklustre global prices and high fixed costs. Fitch estimates Kotagala's annual EBITDAR to fall to around LKR250 million in the medium term (FY17: LKR316 million), while annual interest payments are likely to remain above LKR400 million (FY17: LKR746 million prior to the sale of Unicom and repayment of associated debt). DERIVATION SUMMARY The rating reflects Kotagala's poor liquidity, excessive leverage and limited medium-term business prospects due to inherent weaknesses in its tea and rubber plantation businesses. These factors result in Kotagala being rated multiple notches below its closest rated peer, Sierra Cables PLC (BB+(lka)/Stable). Kotagala has moderate linkages with its immediate parent, CTPL, as defined in Fitch's Parent and Subsidiary Rating Linkage criteria. However, Fitch believes CTPL's own financial limitations may prevent it from extending timely support to Kotagala. Therefore, Fitch rates Kotagala on a standalone basis. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Average tea price of USD3.9/kg (FY17: 3.6/kg) and average rubber price of USD2.0/kg (FY17: 1.9/kg) in FY19 and FY20 - Annual EBITDAR to average around LKR300 million in FY19 and LKR230 million in FY20 - Capex to average 4% of revenue from FY19-FY21 due to the replanting of tea and rubber - No dividend outflows from FY19-FY21 RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Significant improvement in the company's liquidity profile. Developments that May, Individually or Collectively, Lead to Negative Rating Action - The company entering into a temporary negotiated waiver or standstill agreement following a payment default on a large financial obligation. LIQUIDITY High Liquidity Risk: Kotagala had LKR27 million of unrestricted cash at end-March 2018 to meet LKR671 million of contracted debt maturities due in FY19. The company does not have unutilised committed credit lines at its disposal. Fitch expects Kotagala to post negative free cash flow of around LKR130 million in FY19 due to replanting capex to maintain production. Fitch expects Kotagala's annual interest payments to exceed annual EBITDA generation over the medium term. ============= V I E T N A M ============= VIETNAM BANK: Fitch Hikes IDR to BB- & Alters Outlook to Stable --------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) and revised the Support Rating Floors of three state-owned Vietnamese banks - Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam Bank for Agriculture and Rural Development (Agribank) - to 'BB-' from 'B+'. At the same time, Fitch has revised the Support Rating Floors of Military Joint Stock Commercial Bank (Military Bank) and Asia Commercial Joint Stock Bank (ACB) to 'B-' from 'NF'. The rating actions follow Fitch's upgrade of Vietnam's sovereign rating to 'BB' from 'BB-' on 14 May 2018. The Outlooks on the state-owned banks have been revised to Stable from Positive to mirror a similar revision to the sovereign's Outlook. The Viability Ratings of Vietinbank, Vietcombank, Military Bank, and ACB were not part of this review. KEY RATING DRIVERS IDRS, SUPPORT RATINGS AND SUPPORT RATING FLOORS OF VIETINBANK, VIETCOMBANK AND AGRIBANK The upgrades of the IDRs on Vietinbank, Vietcombank, and Agribank are driven by the upward revisions of their Support Rating Floors. The revisions reflect the improving sovereign profile, characterised by Vietnam's improving macroeconomic performance, declining debt levels and rising external buffers that should enhance the state's ability to provide extraordinary support to the banks, if needed. The Support Ratings for the three state- owned banks have been upgraded to '3' from '4' for the same reason. Fitch expects government support will be forthcoming, if needed, given the banks' high systemic importance and the government's controlling stakes. They are among the top four Vietnamese banks by assets and have large domestic franchises. The IDRs and Support Rating Floors are one notch below the sovereign's as Fitch believes the large size of the banking industry relative to GDP and the government's still-limited resources, albeit improving, may hamper the timeliness of support. SUPPORT RATINGS AND SUPPORT RATING FLOORS OF MILITARY BANK AND ACB The Support Rating Floor revisions on Military Bank and ACB similarly reflect the sovereign's improving ability to provide extraordinary support. However, the banks' Support Ratings have been left unchanged at '5'. The rating actions on these privately owned banks indicate that state support may be possible but cannot be relied upon. The banks' franchises are smaller with market shares of around 3% of system assets, compared with the 9%-12% for the state-owned banks. RATING SENSITIVITIES IDRS, SUPPORT RATINGS AND SUPPORT RATING FLOORS The Support Ratings and Support Rating Floors of all five rated Vietnamese banks are sensitive to perceived changes in the state's ability and propensity to provide extraordinary support. In the case of Vietinbank, Vietcombank, and Agribank, subsequent movement in the sovereign ratings would likely affect their support-driven IDRs. The IDRs of Military Bank and ACB are sensitive to changes in their Viability Ratings, which were not reviewed on this occasion. The rating actions are as follows: Agribank Long-Term IDR upgraded to 'BB-' from 'B+'; Outlook revised to Stable from Positive Short-Term IDR affirmed at 'B' Support Rating Floor revised to 'BB-' from 'B+' Support Rating upgraded to '3' from '4' Vietinbank Long-Term IDR upgraded to 'BB-' from 'B+'; Outlook revised to Stable from Positive Short-Term IDR affirmed at 'B' Support Rating Floor revised to 'BB-' from 'B+' Support Rating upgraded to '3' from '4' Vietcombank Long-Term IDR upgraded to 'BB-' from 'B+'; Outlook revised to Stable from Positive Short-Term IDR affirmed at 'B' Support Rating Floor revised to 'BB-' from 'B+' Support Rating revised to '3' from '4' Military Bank Support Rating Floor revised to 'B-' from 'NF' Support Rating affirmed at '5' ACB Support Rating Floor revised to 'B-' from 'NF' Support Rating affirmed at '5' ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2018. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***