/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180528.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, May 28, 2018, Vol. 21, No. 104 Headlines A U S T R A L I A AUSWIDE AUTO: Director Disqualified From Managing Companies FASHIONOID PTY: Second Creditors' Meeting Set for June 6 GEOAXIOM PTY: Second Creditors' Meeting Set for June 4 METAL TRADES: Second Creditors' Meeting Set for May 31 PROJECT PLAN: Second Creditors' Meeting Set for June 6 QUINTIS LTD: Litigation Capital to Fund Shareholder Class Action C H I N A CFEC CHINA: CITIC Pays Debts of Company's Czech Unit I N D I A ADVANCE COOLERS: Ind-Ra Moves B Issuer Rating to Non-Cooperating AMBRISH KUMAR: Ind-Ra Maintains 'B+' LT Rating in Non-Cooperating AMTEX SOFTWARE: CRISIL Reaffirms B- Rating on INR22MM Term Loan BAPASHREE AGRO: Ind-Ra Maintains B+ LT Rating in Non-Cooperating BATLIBOI ENVIRO: Ind-Ra Maintains B- LT Rating in Non-Cooperating BEKO DIMON: ICRA Lowers Rating on INR2cr LT Loan to D BHARUCH JILLA: CRISIL Moves D Rating to Not Cooperating Category CLASSIC HYUNDAI: CRISIL Lowers Rating on INR10MM Cash Loan CRYSTAL CARS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating DAULAT FLOUR: Ind-Ra Keeps B Rating on Non-Cooperating Category GALAXY MACHINERY: CRISIL Reaffirms B Rating on INR7.3MM Loan GIRRAJ JI: Ind-Ra Keeps BB+ Rating on Non-Cooperating Category GLOBAL FOODS: CRISIL Hikes Rating on INR30MM Loan From D GURU KIRPA: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating HAPPYHOMESS CONSULTANCY: CRISIL Assigns B Rating to INR9MM Loan HERCULES HOSPITAL: Ind-Ra Migrates B LT Rating to Non-Cooperating HOTEL BABYLON: CRISIL Reaffirms B+ Rating on INR29MM LT Loan IN-STYLE EMBROIDERIES: Ind-Ra Keeps BB- Rating in Non-Cooperating INDICO MOTORS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating JALAN JEE: CRISIL Lowers Rating on INR9MM Cash Loan to C KAMAKHYA TRANSFORM: Ind-Ra Maintains BB Rating in Non-Cooperating KARUN RICE: ICRA B Rating Remains in Not Cooperating Category KARNIMATA COLD: ICRA Maintains B Rating in Not Cooperating KPT SPINNING: CRISIL Lowers Rating on INR3.5MM Cash Loan to D KUNA IMPEX: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating L. MADANLAL: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating M/S MANMADE: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating MAHADEV MOTORS: CRISIL Cuts Rating on INR11MM Loan to B+ MANNEY ENGINEERS: Ind-Ra Maintains B+ Rating in Non-Cooperating MANTHAN SOFTWARE: CRISIL Migrates B+ Rating to Not Cooperating MATRIX BIZCOM: Ind-Ra Lowers Long-Term Issuer Rating to 'D' MATRIX ROLLER: Ind-Ra Retains B Issuer Rating in Non-Cooperating MEALITE FOODS: CRISIL Lowers Rating on INR5.5MM Cash Loan to D MITTAL OCEAN: ICRA Moves B+ Rating to Not Cooperating Category MITTAL TIMBER: ICRA Moves B+ Rating to Not Cooperating Category NEW HARYANA: Ind-Ra Keeps B+ Rating in Non-Cooperating Category PALLICKAL AGRO: CRISIL Moves B+ Rating to Not Cooperating Cat. POWER & INSTRUMENT: Ind-Ra Migrates BB- Rating to Non-Cooperating PRAYAGRAJ POWER: ICRA Reaffirms D Rating on INR11,493cr Loan RACHITECH ENGINEERING: CRISIL Reaffirms B+ Rating on INR5.5M Loan RADHIKA JEWELLERS: Ind-Ra Migrates B+ Rating to Non-Cooperating REDCO HOTELS: CRISIL Moves B+ Rating to Not Cooperating Category RISHAB GUM: CRISIL Withdraws B Rating on INR4MM Cash Loan S. S. WAREHOUSING: CRISIL Assigns B+ Rating to INR6MM Term Loan SAMPURN AGRI: Ind-Ra Maintains B Issuer Rating in Non-Cooperating SANJAY DIESELS: Ind-Ra Maintains B+ LT Rating in Non-Cooperating SANKALP ENGINEERING: ICRA Keeps D Rating in Not Cooperating SAUMIL IMPEX: CRISIL Reaffirms B Rating on INR17.76MM Term Loan SHAH LAXMI: ICRA Withdraws B+ Rating on INR3.5cr LT Loan SHRI GANESH: ICRA Moves D Rating to Not Cooperating Category SRI RAMA EDUCATIONAL: CRISIL Assigns B+ Rating to INR33.23MM Loan SRINIVASA AGRO: Ind-Ra Lowers Long-Term Issuer Rating to 'B+' SUDESH COTTON: CRISIL Migrates B+ Rating to Not Cooperating Cat. SUNGRO SEEDS: Ind-Ra Hikes Issuer Rating to BB+, Outlook Stable SUNSHAKTI OIL: CRISIL Moves B Rating to Not Cooperating Category SUYASH MOTORS: CRISIL Migrates B+ Rating to Not Cooperating VIJAYASREE FOODS: CRISIL Reaffirms B+ Rating on INR6MM Loan WANDERLAND REAL: ICRA Assigns B+ Issuer Rating WORLDSTAR FABRICS: CRISIL Lowers Rating on INR25MM Cash Loan J A P A N TOSHIBA CORP: Times Square TV Coming Down in Cost-Cutting Measure S I N G A P O R E CFG PERU: Trustee Allowed to Conduct Rule 2004 Discovery on HSBC FIRST SHIP: Gets US$18M Loan Offer to Refinance Chemical Tankers HYFLUX LTD: SIAS to Organize Meetings in Due Course - - - - - ================= A U S T R A L I A ================= AUSWIDE AUTO: Director Disqualified From Managing Companies ----------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has disqualified Sydney restaurateur Frank Anthony Criniti of Castle Hill, NSW, from managing companies for the maximum period of five years as a result of his involvement in seven failed companies. Mr. Criniti's disqualification follows the appointment of liquidators to seven companies he managed or acted as a de facto director: -- Ozdime Pty Ltd ACN 141 976 909; -- Auswide Auto Wholesalers Pty Ltd ACN 141 149 313; -- Freddaisy Pty Ltd ACN 143 196 025; -- Global Hospitality Pty Ltd ACN 164 839 329; -- Rackforce Pty Ltd ACN 149 141 471; -- Diamondwish Pty Ltd ACN 152 124 377; and -- Frank Masons Pty Ltd ACN 146 034 808. ASIC found that Mr. Criniti had: * improperly used his corporate position to gain an advantage for himself and others; * provided false information to authorities; * failed to prevent some of the companies from trading while potentially insolvent; * failed to pay tax and ensure that proper financial records were kept; * failed to exercise his duties as a director with due care and diligence; * failed to comprehensively monitor company operations and financial position; and * acted as a de facto director, assuming responsibility for the management of companies while not appointed as a director. ASIC relied on supplementary reports that were lodged by liquidators Ozem Kassem & Jason Tang of Cor Cordis for Auswide Auto Wholesalers Pty Ltd and Freddaisy Pty Ltd and by Steven Gladman of Hall Chadwick for Global Hospitality Pty Ltd. ASIC assisted these liquidators in preparing the supplementary reports with funding from the Assetless Administration Fund (AAF). The total amount owed by the companies to creditors was more than AUD3.5 million. Mr. Criniti's disqualification extends to May 20, 2023. Mr. Criniti has been given permission to manage the following companies until July 30, 2018 for a limited purpose: -- Criniti's Pantry (Castle Hill) Pty Ltd ACN 148 094 937; -- Criniti's (Darling Harbour) Pty Ltd ACN 135 320 697; -- Criniti's (Woolloomooloo) Pty Ltd ACN 151 744 133; -- Jade' N Belle Pty Ltd ACN 142 501 522; -- Criniti's Woodfire Pizza Pty Ltd ACN 135 866 385; and -- Givana Prestige Pty Ltd ACN 147 605 927 Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about the company's inability to pay its debts. ASIC also maintains a 'Banned and Disqualified Persons' register that provides information about people who have been disqualified from: - involvement in the management of a corporation, - auditing self-managed superannuation funds (SMSFs), or -- practising in the financial services of credit industry. ASIC's Small Business Strategy, released in August 2017, includes protecting creditors, employees and small business from directors that mismanage companies. This outcome is an example of ASIC taking such action. FASHIONOID PTY: Second Creditors' Meeting Set for June 6 -------------------------------------------------------- A second meeting of creditors in the proceedings of Fashionoid Pty. Ltd., trading as METALICUS, has been set for June 6, 2018, at 10:30 a.m. at the offices of PKF Melbourne, Level 13, 440 Collins Street, in Melbourne. 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 5, 2018, at 4:00 p.m. Stirling L. Horne and Jason G. Stone of PKF Melbourne were appointed as administrators of Fashionoid Pty on May 2, 2018. GEOAXIOM PTY: Second Creditors' Meeting Set for June 4 ------------------------------------------------------ A second meeting of creditors in the proceedings of Geoaxiom Pty Ltd has been set for June 4, 2018, at 11:00 a.m. at the offices of SMB, Level 18, 324 Queen Street, in Brisbane, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 3, 2018, at 4:00 p.m. Alice Ruhe and Ken Sellers of SMB were appointed as administrators of Geoaxiom Pty on April 30, 2018. METAL TRADES: Second Creditors' Meeting Set for May 31 ------------------------------------------------------ A second meeting of creditors in the proceedings of Metal Trades Group Pty Ltd has been set for May 31, 2018, at 11:00 a.m. at Level 1, 164 Brisbane Street, in Ipswich, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by May 30, 2018, at 4:00 p.m. John Maxwell Morgan and Geoffrey Davis of BCR Advisory were appointed as administrators of Metal Trades on April 27, 2018. PROJECT PLAN: Second Creditors' Meeting Set for June 6 ------------------------------------------------------ A second meeting of creditors in the proceedings of Project Plan Pty Ltd has been set for June 6, 2018, at 10:00 a.m. at Level 1, 14 Watt Street, in Newcastle, 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 5, 2018, at 4:00 p.m. Bradd William Morelli of Jirsch Sutherland was appointed as administrator of Project Plan on May 2, 2018. QUINTIS LTD: Litigation Capital to Fund Shareholder Class Action ---------------------------------------------------------------- Litigation Capital Management will fund a class action that commenced on May 25 in Sydney in the Federal Court of Australia, on behalf of shareholders in Quintis Limited. Piper Alderman are the lawyers for the class members and LCM is funding the class action, now on an unconditional basis. As previously announced to the market on May 19, 2017, LCM had proposed to fund on a conditional basis, claims of certain current and former Quintis shareholders in a class action against Quintis. The class action that commenced today differs significantly from this earlier proposed funding of a claim, which LCM was investigating with Piper Alderman and also from the two other class actions against Quintis which commenced in the intervening period. The action is based on the accounting treatment used in the 2015 and 2016 Financial Reports. This class action is against both Quintis and their auditors Ernst & Young ("EY"). The claim alleges that by signing off on the 2015 and 2016 Financial Reports, EY engaged in conduct that was misleading or deceptive, and was negligent. The case alleges that in both 2015 and 2016, the Financial Reports issued by Quintis did not give a true and fair view of the financial position and performance of Quintis. Rather, those Financial Reports significantly over-stated the value of Quintis' assets and the amount of Quintis' profits in those years. Mr. Patrick Moloney of LCM said: "We and Piper Alderman have spent a significant amount of time preparing this action which we believe gets to the heart of the collapse of Quintis and which represents the best opportunity for shareholders to recoup their losses. The claim is based on significant accounting errors which should have been identified by EY in their role as auditors". Shareholders in Quintis can find out more about this class action at the following website: pipald.info/QIN About Quintis Quintis is Australia's largest sandalwood forestry management company and manages 17 separate managed investment schemes. Quintis employs approximately 500 staff at various locations throughout Australia. Quintis manages nearly 13,000 hectares of sandalwood plantations in northern Australia and owns a distillery and pharmaceutical company to process the sandalwood for the cosmetics, well-being and pharmaceutical industries. The company was formed in 1997 and listed in 2007. KordaMentha Restructuring partners Richard Tucker, Scott Langdon, and John Bumbak were appointed as Voluntary Administrators of the Quintis Group on January 20, 2018 after Asia Pacific Investments DAC exercised an option requiring Quintis to acquire 400 hectares of plantations at a pre-determined price of AUD37 million, with settlement required totake place on Feb. 2, 2018. Quintis did not have the financial resources to pay the put option. As a result of the appointment of Administrators, on Jan. 23, 2018, the secured bondholders appointed Jason Preston, Shaun Fraser and Robert Brauer of McGrathNicol as Receivers and Managers. ========= C H I N A ========= CFEC CHINA: CITIC Pays Debts of Company's Czech Unit ---------------------------------------------------- Robert Muller and Jan Lopatka at Reuters report that Czech financial firm J&T said on May 25 it had struck a deal with Chinese state conglomerate CITIC Group to settle debts owed by CEFC China Energy Company Limited, ending a dispute. Reuters says privately-held CEFC has spearheaded a Chinese acquisition drive in the Czech Republic, championed by Czech President Milos Zeman, which includes a range of assets including engineering, brewing and real estate as well as a soccer club and an airline. But the Czech-based CEFC business has been hit by problems at once rapidly expanding parent group CEFC China Energy, which started unravelling under a pile of debt, Reuters relates. Its troubles were aggravated when it was revealed in March that founder Chairman Ye Jianming was being investigated in China, the report notes. According to Reuters, CEFC's biggest deal, to buy a $9.1 billion stake in Russian oil major Rosneft, has since fallen through and one CEFC business defaulted on bonds earlier last week. A plan to take half of one of J&T's main businesses, banking group J&T Financial Group (JTFG), was also abandoned, the report states. The Czech part of CEFC has for weeks said CITIC, a Chinese state- owned conglomerate, would take a stake in the business and help pay back EUR450 million in debt owed to J&T. But as the talks dragged on, J&T Private Investments (JTPI) took over shareholder rights in CEFC Europe and put in place its own crisis management team last week, Reuters says. Reuters notes that the deal ended the disputes and a spokeswoman for JTFG said that by Friday afternoon [May 25], CITIC had paid all receivables the J&T entities had from CEFC entities. A source close to the involved parties said around 12 billion crowns (US$543 million) had been paid. "After constructive negotiations, J&T Private Investments and J&T Finance Group SE on the one side, and Rainbow Wisdom led by the Chinese Corporation CITIC Group on the other, have agreed on a strategic cooperation," J&T said. The agreement sets out a longer-term partnership with CITIC under which CITIC's Rainbow Wisdom will take over a 9.9 percent stake in JTFG, and EUR200 million worth of perpetual unsecured JTFG debt now held by two China-based CEFC entities, the statement said, Reuters relays. A spokesman for CITIC confirmed the deal but gave no details on its arrangements with CEFC, in which it is taking a stake. "The agreement between J&T and CITIC represents a step forward for us to develop businesses in Czech and other European markets," Reuters quotes CITIC Group spokesman Liu Guang as saying in an email. CEFC China Energy Company Limited engages primarily in energy and financial services businesses. It invests and develops upstream and downstream of oil and gas fields, and petrochemicals in the Middle East, Central Asia, and Africa. The company establishes logistics chains, overseas storage, and transshipment terminals. It also invests in securities, trusts, futures, banking, financial assets transactions, leasing, factoring, direct risk management, and online insurance. ========= I N D I A ========= ADVANCE COOLERS: Ind-Ra Moves B Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M/s Advance Coolers' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital migrated to non- cooperating category with IND B (ISSUER NOT CO-OPERATING) /IND A4 (ISSUER NOT CO-OPERATING) rating; -- INR17.5 mil. Non-fund-based working capital migrated to non- cooperating category with IND A4 (ISSUER NOT CO-OPERATING) rating; -- INR20 mil. Proposed long-term loan migrated to non- cooperating category with Provisional IND B (ISSUER NOT CO- OPERATING) rating; -- INR20 mil. Proposed fund-based facilities migrated to non- cooperating category with Provisional IND B (ISSUER NOT CO- OPERATING) /Provisional IND A4 (ISSUER NOT CO-OPERATING) rating; and -- INR12.5 mil. Proposed non-fund-based facilities migrated to non-cooperating category with Provisional IND A4 (ISSUER NOT CO-OPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 10, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE M/s Advance Coolers manufactures air coolers and fans at its facility in Thane, Mumbai (Maharashtra). AMBRISH KUMAR: Ind-Ra Maintains 'B+' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ambrish Kumar Tripathi'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: -- INR10 mil. Fund-based working capital limit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR45.5 mil. Non-fund-based working capital limit maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 28, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Ambrish Kumar Tripathi is engaged in the construction work of dams and canals for Madhya Pradesh Water Resources Department. AMTEX SOFTWARE: CRISIL Reaffirms B- Rating on INR22MM Term Loan --------------------------------------------------------------- CRISIL has reaffirmed its rating on the long-term bank facilities of Amtex Software Solutions Private Limited (ASSPL) at 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3 CRISIL B-/Stable (Reaffirmed) Foreign Currency Term Loan 22 CRISIL B-/Stable (Reaffirmed) The rating continues to reflect modest scale of operations in a competitive industry and exposure to risks related to geographical and customer concentration. These weaknesses are partially offset by the experience of the promoter in the information technology (IT) services sector. Key Rating Drivers & Detailed Description Weakness: * Modest scale of operations and exposure to competition: Intense competition may continue to restrict the scalability of operations and limit the pricing power with suppliers and customers, thereby constraining profitability. Revenue is estimated at INR38 crore in fiscal 2018. * Exposure to customer and geographical concentration risks: ASSPL derives 70% of its revenue from sales to Information Builders, USA and the balance from its group company, Amtex Solutions Inc, USA. This leads to a highly concentrated revenue profile. Further, economic downturn or political factors in USA may also directly impact the business. Strengths: * Experience of promoter: The promoter, Mr Sainath Pokola, has been in the IT services industry for over a decade. He ventured into the industry through Amtex Systems Inc. in 1997. Benefits from the promoter's experience, his strong understanding of the market dynamics, and healthy relations with customers should continue to support the business. Outlook: Stable CRISIL believes ASSPL will continue to benefit from the promoters' extensive experience in the IT services sector. The outlook may be revised to 'Positive' if timely completion of projects within budgeted costs, and significant ramp-up in scale of operations lead to better financial risk profile. Conversely, the outlook may be revised to 'Negative' if significant time or cost overruns in projects, or low cash accruals weaken financial metrics. Set up in 2000 in Chennai as Amtex Infotech Pvt Ltd, the company was given the current name in 2012. ASSPL provides a range of IT services, including software development and testing, data mining and business intelligence, and business process outsourcing. BAPASHREE AGRO: Ind-Ra Maintains B+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Bapashree Agro 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 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: -- INR97.5 mil. Proposed fund-based facilities maintained in non-cooperating category with Provisional IND B+ (ISSUER NOT COOPERATING) /Provisional IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 23, 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 2009, Bapashree Agro is primarily engaged in the processing, milling and trading of rice and wheat. BATLIBOI ENVIRO: Ind-Ra Maintains B- LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Batliboi Environmental Engineering 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 the rating. The rating will continue to appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR6.5 mil. Cash credit maintained in Non-Cooperating Category with IND B- (ISSUER NOT COOPERATING) rating; and -- INR2.5 mil. Non-fund based working capital limit maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 6, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1959, Batliboi Environmental Engineering is involved in the design, selection, engineering, fabrication, supply, installation, and commissioning of air and water pollution control equipment. BEKO DIMON: ICRA Lowers Rating on INR2cr LT Loan to D ----------------------------------------------------- ICRA Ratings said the ratings for the bank facilities of Beko Dimon Fishing Co has been downgraded to [ICRA] D due to default in servicing debt obligation and the ratings will continue to remain in 'Issuer Not Cooperating' category and is now denoted as "[ICRA]D ISSUER NOT COOPERATING". ICRA has been trying to seek information from the entity to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA based on feedback received from banker that, Beko Dimon Fishing Co has defaulted in repaying debt obligation. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 2.00 Ratings downgraded to [ICRA]D Unallocated ISSUER NOT COOPERATING from [ICRA]BB- (stable); Ratings continue to remain in 'ISSUER NOT COOPERATING' category Short term-Fund 2.50 Ratings downgraded to [ICRA]D based facility ISSUER NOT COOPERATING from [ICRA]A4; Ratings continue to remain in 'ISSUER NOT COOPERATING' category Rationale The rating downgrade follows the delays in debt servicing by Beko to the lender(s), as confirmed by them to ICRA. Beko Dimon Fishing Company was established in the year 2003. It is registered as a 100% Export Oriented Unit (EOU). The firm is into manufacturing of fishing hooks, snoods, lines, swivels, monofilament lines and rubber tubing for the long line fishing industry and for other commercial and non-commercial fishing purposes. The firm has its manufacturing facility in Nilgiris with a built up area of approximately 1830 sq m. in 1.0 acre of land. It has a capacity to manufacture 20,000 to 25,000 hooks per day which would increase to about 200,000 hooks per day with the installation of the new machinery. BHARUCH JILLA: CRISIL Moves D Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Bharuch Jilla Kaival Kelavani Mandal (BJKKM) for obtaining information through letters and emails dated March 27, 2018 and April 3, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 8.74 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 Bharuch Jilla Kaival Kelavani Mandal. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bharuch Jilla Kaival Kelavani Mandal 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 Bharuch Jilla Kaival Kelavani Mandal to 'CRISIL D Issuer not cooperating'. BJKKM is an Kheda, Gujarat based trust which is establishing a non-granted school named ' 'My Shannen School' and is promoted by Mr. Kaushik Somabhai Patel, Mr. Shirish Naginbhai Patel, Mr. Dharmesh Jashubhai Patel, Mr. Bhupendrabhai Patel, Mr. Mahendrabhai Maganbhai Patel, Mrs. Lataben Naginbhai Patel and Mrs. Ushabahen Patel with the capacity of approximately 3138 students in both English and Gujarati Medium in the general and science stream from K.G. to Std. 12. CLASSIC HYUNDAI: CRISIL Lowers Rating on INR10MM Cash Loan ---------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facility of Classic Hyundai (CH) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects the firm's average business risk profile due to stagnant revenue and decline in operating margin. In fiscal 2017, revenue fell to INR83 crore and operating margin to 2.5% from INR88 crore and 3%, respectively, in fiscal 2016. In fiscal 2018, operating margin is estimated at a similar level and revenue at INR85-86 crore. Financial risk profile has weakened due to large capital withdrawal leading to modest networth and high gearing of negative 21 times and total outside liability to tangible networth (TOLTNW) ratio of negative 26 times as on March 31, 2018. Debt protection metrics remain weak, with interest coverage and net cash accrual to total debt ratio at 1 time and negative 11 times, respectively, in fiscal 2018. The ratings also reflect the firm's below-average financial risk profile and modest scale of operations. These weaknesses are partially offset by its promoters' experience in the automotive dealership business. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations amid intense competition: Scale remains modest, reflected in estimated revenue of INR85-86 crore in fiscal 2018, in the intensely competitive passenger vehicles segment. * Below-average financial risk profile: TOLTNW ratio is estimated to remain high at negative 20.0 times as on March 31, 2018. Low operating profitability and large debt are likely to weaken debt protection metrics, with interest coverage and net cash accrual to total debt ratios is estimated at 1.1 times and negative 2%, respectively, in fiscal 2018. Strength: * Experience of promoters: Benefits from the promoters' experience of two decades in the automobile dealership business should continue to support the business. Outlook: Stable CRISIL believes CH's will continue to benefit from its established market presence. The outlook may be revised to 'Positive' if sizeable cash accrual leads to better financial risk profile and efficient working capital management. The outlook may be revised to 'Negative' if financial risk profile weakens because of lower cash accrual or stretched working capital cycle. Set up in 2011, CH is an authorised dealer for Hyundai Motor India Ltd in Malappuram, Kerala. The partnership firm was promoted by Mr. C P Abdulla and his friends Mr. Abdul Azeez, Mr Zakir Hussain, and Mr Ahmad Hassan. CRYSTAL CARS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Crystal Cars Private Limited's (CCPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Term loan due on May 2026 migrated to Non- Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR73 mil. Fund-based working capital migrated to Non- Cooperating Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 31, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2015, CCPL has set up a Honda Motor Company Limited showroom and service centers in Kottayam, Kerala. The company is engaged in the trading of Honda cars and spares, and service and exchange. DAULAT FLOUR: Ind-Ra Keeps B Rating on Non-Cooperating Category --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Daulat Flour Mill'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 actions are: -- INR30 mil. Fund-based limit maintained in Non-Cooperating Category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; -- INR27 mil. Term loan maintained in Non-Cooperating Category with IND B (ISSUER NOT COOPERATING) rating; and -- INR13 mil. Proposed fund-based working capital limit maintained in Non-Cooperating Category with Provisional IND B (ISSUER NOT COOPERATING) /Provisional IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 13, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Daulat Flour Mill operates a 30,000 metric ton per annum flour mill in Bulandshahr (Uttar Pradesh). GALAXY MACHINERY: CRISIL Reaffirms B Rating on INR7.3MM Loan ------------------------------------------------------------ CRISIL has reaffirmed its ratings on bank facilities of Galaxy Machinery Pvt Ltd (GMPL) at 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Reaffirmed) Cash Credit 7 CRISIL B/Stable (Reaffirmed) Letter of Credit 3 CRISIL A4 (Reaffirmed) Long Term Loan 1.7 CRISIL B/Stable (Reaffirmed) Proposed Working Capital Facility 7.3 CRISIL B/Stable (Reaffirmed) The ratings reflect the below-average financial risk profile and susceptibility to volatile raw material prices and intense competition in the computer numeric control (CNC) machines manufacturing segment. These weaknesses are partially offset by extensive experience of GMPL's promoters. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile: Financial risk profile is marked by a negative net worth. Debt protection metrics are moderate, with net cash accrual to total debt and interest coverage ratios of 0.09 time and 1.7 times, respectively, for fiscal 2018. * Working capital-intensive operations: Gross current assets stood at 206 days as on March 31, 2018, due to sizeable inventory of 149 days. Receivable's outstanding for over six months rose to INR3.4 crore, from INR2.8 crore in the previous fiscal, due to a delay in payment by the client, Warm Gear Pvt Ltd. Strength * Extensive experience of the promoters: The three decade-long experience of the promoters, and the collaboration with Italy- based Biglia SpA have helped the company set up a strong sales and services network, across eight cities, including Bengaluru, Delhi, and Chennai. Outlook: Stable CRISIL believes the financial risk profile will remain weak due to the small networth and large working capital requirement. The outlook may be revised to 'Positive' if any long-term fund infusion by promoters or sustained improvement in working capital management strengthens liquidity. The outlook may be revised to 'Negative' if an unprecedented stretch in working capital cycle or low cash accrual further weakens financial risk profile. Incorporated in 1991 by promoters, Mr. S Elango and Mr. R Selvaraj, GMPL manufactures CNC machines. GIRRAJ JI: Ind-Ra Keeps BB+ Rating on Non-Cooperating Category -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Girraj Ji Stone Crushers 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 the rating. The rating will continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR13.70 mil. Fund-based working capital limits maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR58.70 mil. Non-fund-based working capital limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 23, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Girraj Ji Stone Crushers is an 'A' class contractor engaged in the tender-based business of ballast supply, linking of railway tracks and construction of railway under bridges and railway over bridges as well as other construction work in various parts of India. GLOBAL FOODS: CRISIL Hikes Rating on INR30MM Loan From D -------------------------------------------------------- CRISIL has revised its rating on the short term bank facility of Global Foods from 'CRISIL A4' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 30 CRISIL A4 (Revised from 'CRISIL A4' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4') The rating downgrade takes into account the instance of irregularity of more than 30 days in its working capital facility during the period Oct-Nov 2017. The simultaneous rating upgrade reflects sufficient track record of timely debt servicing maintained by the firm since then. The rating continues to reflect the firm's below-average financial risk profile because of modest net worth and high gearing, and its large working capital requirement. These weaknesses are partially offset by its promoter's extensive experience and its established market position in processing and exporting cashew kernels. Key Rating Drivers & Detailed Description Strengths * Below average financial risk profile: The firm's financial risk profile is below-average with modest net worth of around INR7.8 crore as on March 31 2018, high gearing of 3.3 times and average debt protection metrics with interest coverage of around 1.8 times and NCATD of 3% for fiscal 2018. With modest accretion to reserves and modest cash accruals, net worth and debt protection metrics are expected to remain at similar levels over the medium term. * Large working capital requirement: Global Foods's operations are working capital intensive, as indicated by GCA days of 193 days as on March 31 2018. High GCA days is on account of large receivables and inventory of around 160 days and 36 days respectively as on March 31 2018. As a result of high GCA days, working capital limits remain highly utilized. Weaknesses * Promoters' extensive experience in cashew processing business: Business profile is expected to benefit from promoters' experience of over three decades, the firm's integrated operations and established track record over the medium term. Global Foods, founded as a partnership firm by Mr. Abhijit Mohan and Mr. Mohan Chandra Nair in February 2013, processes and exports cashew kernels. GURU KIRPA: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Guru Kirpa Tex Fab'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 with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR25 mil. Term loan maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 9, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established as a partnership concern, Guru Kirpa Tex Fab manufactures non-woven fabrics. HAPPYHOMESS CONSULTANCY: CRISIL Assigns B Rating to INR9MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the proposed long term bank facility of Happyhomess Consultancy Private Limited (HCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 9 CRISIL B/Stable (Assigned) The rating reflects HCPL's modest scale of operations in competitive real estate consulting segment and weak financial risk profile marked by modest net worth and weak gearing. These rating weaknesses are partially offset by extensive experience of promoters and efficient working capital management. Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: Net worth was modest at negative INR0.10 Cr with negative gearing of 7.10 times as on 31 March 2017. Debt protection metrics; interest coverage and NCA/TD were 8.82 times and 10 percent respectively in 2016-17. * Modest Scale of operation in competitive real estate consulting segment: Modest scale of operation marked by revenues of INR3.2 Cr in 2016-17. HCPL is also exposed to high degree of competition from large number of unorganized players in an intensely competitive real estate consulting segment. Strength * Extensive industry experience of the promoters: The company is promoted by Mr. A.Chalapathy, Mrs.Sreelatha and M.Obul Reddy. The promoters have experience of four decades in real estate consulting segment. CRISIL believes HCPL will continue to benefit over the medium term from its promoters extensive experience. * Efficient working capital management: Efficient working capital management marked by GCA days of 39 days as on 31 March 2017 on account of marginal debtors days. Debtor days were in the range of 5-16 days over the last 2 years ended 31 March 2017. Outlook: Stable CRISIL believes HCPL will continue to benefit over the medium term from its promoters' extensive experience. The outlook may be revised to 'Positive' in case of a substantial improvement in revenue and profitability margins, and a sustained efficient working capital management resulting in improved business and financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability margins, or significant deterioration in its capital structure caused most likely by a large, debt-funded capital expenditure or a stretch in its working capital cycle. HCPL, incorporated in Dec 2015, is engaged in real estate consultancy and marketing services. The company has its head office in Visakhapatnam. The company has close to 200 employees across four cities across India (Visakhapatnam, Hyderabad, Gajuwaka and Bengaluru). HERCULES HOSPITAL: Ind-Ra Migrates B LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Hercules Hospitalities Private Limited's (HHPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR15 mil. Term loan due on March 2022 migrated to Non- Cooperating Category with IND B (ISSUER NOT COOPERATING) rating; and -- INR110 mil. Fund-based facilities - cash credit migrated to Non-Cooperating Category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 6, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2003, HHPL is part of the Hercules Group. The company is setting up an automobile dealership showroom of NEXA in the Alleppey district of Kerala. HOTEL BABYLON: CRISIL Reaffirms B+ Rating on INR29MM LT Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank loan facility of Hotel Babylon Capital Private Limited (HBCPL). The rating reflects exposure to moderate project risk and to intense competition in the hotel industry, and a modest financial risk profile. These weaknesses are partially offset by the extensive industry experience of the promoters and their continued funding support. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 29 CRISIL B+/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weakness * Moderate project risk: As the hotel is under construction, the company is exposed to moderate implementation and funding risks. It has been sanctioned a term loan of INR29 crore, but is highly dependent on customer advances from sale of office space. Furthermore, the implementation schedule has been extended by around six months due to internal changes in the plan. Although the hotel is expected to start functioning shortly, stabilisation and ramp-up of operations will remain rating sensitivity factors. * Exposure to intense competition: Concentration of revenue in a single hotel constrains access to a wider customer base, and renders the company susceptible to the dynamics of operating in a single market. It is also more vulnerable to competition from bigger players in the hospitality industry. * Below-average financial risk profile: A modest networth and debt-funding for the project continue to constrain the financial risk profile. The networth and gearing are estimated at INR6.7 crore and 2.9 times, respectively, as on March 31, 2018. Strength * Extensive industry experience of the promoters: The promoters have two decades of experience in running hotels under the Babylon group. The group operates a 4-star hotel, Hotel Babylon International (Raipur) with 80 rooms (operational since 2001) and another 3-star hotel, Hotel Babylon Inn (Raipur) with 72 rooms (since 2009). Outlook: Stable CRISIL believes HBCPL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the hotel is implemented as per schedule, and there is higher-than-expected occupancy, leading to better revenue and cash accrual during the initial phase. The outlook may be revised to 'Negative' in case of further delay in commissioning the hotel, and/or lower-than-expected ramp-up in sales post commercialisation, exerting pressure on the financial risk profile, especially liquidity. HBCPL, incorporated in 2012, is promoted by Mr Paramjeet Singh Khanuja and his wife, Mrs Jugesh Kaur. The company is setting up a 3-star hotel in Raipur, Chhattisgarh. The company is presently under project phase and expected to commence operations by July 2018. IN-STYLE EMBROIDERIES: Ind-Ra Keeps BB- Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained In-Style Embroideries 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: -- INR12.50 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; -- INR52.50 mil. Term loan maintained in Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR5.00 mil. Proposed fund-based working capital limit maintained in Non-Cooperating Category with Provisional IND BB- (ISSUER NOT COOPERATING) /Provisional IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR15.00 mil. Proposed term loan maintained in Non- Cooperating Category with Provisional IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 27, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE In-Style Embroideries was incorporated in 1997 and is engaged in embroideries job work. INDICO MOTORS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Indico Motors Private Limited's (IMPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR220 mil. Fund-based limits migrated to Non Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; -- INR20 mil. Non-fund-based limits migrated to Non Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating; -- INR40 mil. Proposed fund-based limits migrated to Non- Cooperating Category with Provisional IND BB (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Proposed non-fund-based limits migrated to Non- Cooperating Category with Provisional IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 4, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Founded in 1989 by Mr. Sanjay Dubey, IMPL is engaged in the manufacturing of bodies of heavy commercial vehicles, such as tippers, trailers and tip trailers. JALAN JEE: CRISIL Lowers Rating on INR9MM Cash Loan to C -------------------------------------------------------- CRISIL has downgraded its rating on long-term bank facility of Jalan Jee Polytex Limited (JPL) to 'CRISIL C'' from 'CRISIL B- /Stable' while reaffirming the short-term rating at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL C (Downgraded from 'CRISIL B-/Stable') Letter of Credit 1 CRISIL A4 (Reaffirmed) The downgrade reflects stressed liquidity due to inadequate cash accrual to meet long-term debt repayment. Furthermore, performance remains weak with a modest turnover of INR50 crore and operating margin of around 2% in fiscal 2018. Also, operations remain highly working capital intensive, resulting in high bank utilisation at more than 95% over the 12 months through March 2018. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in the highly competitive textile industry: Revenue was modest, estimated at INR50 crore in fiscal 2018, in an intensely competitive industry. * Susceptibility to volatility in raw material prices: The operating margin is vulnerable to any adverse movement in prices of polyester and acrylic fibre, which are influenced by volatility in crude oil prices. * Below-average financial risk profile: The debt protection metrics were subdued, with net cash accrual to total debt and interest coverage ratios at 0.01 time and 1.8 times, respectively, in fiscal 2017. Strength * Industry experience of the promoters: The promoters have an experience of X years in the textile industry. They have thus been able to establish a strong relationship with customers and suppliers. Incorporated in 2001, JPL is promoted by Mr. Vinod Jalan and his wife, Mrs. Kavita Jalan. The company manufactures polyester yarn and knitted fabrics, and trades in grey fabric. Its facility in Gorakhpur, Uttar Pradesh, has a capacity of 35,000 tonne per annum for manufacturing textured yarn, with 22 machines for texturizing and 16 for TFO (two for one yarn). KAMAKHYA TRANSFORM: Ind-Ra Maintains BB Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Kamakhya Transformers' 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: -- INR16 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; -- INR23 mil. Non-fund-based working capital limit maintained in Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR13.5 mil. Proposed non-fund-based working capital limit maintained in Non-Cooperating Category with Provisional IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 1, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Kamakhya Transformers was incorporated in 2009 in Guwahati (Assam) and manufactures and repairs distribution transformers. KARUN RICE: ICRA B Rating Remains in Not Cooperating Category ------------------------------------------------------------- ICRA Ratings said the rating for the INR7.00-crore bank facility of M/s Karun Rice & General Mills (KRGM) continues to be in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B (Stable) ISSUER NOT COOPERATING. ICRA has been seeking information from the entity to monitor its performance. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA based on the best available/dated/limited information on the issuer's performance. Accordingly, lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 6.50 [ICRA]B (Stable) ISSUER NOT Based/CC COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Long-Term 0.50 [ICRA]B (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Incorporated in the year 1996, KRGM is a partnership firm engaged in milling, processing and sorting of rice. The firm has its plant at Cheeka (Haryana) with a milling capacity of 3.25 tonnes per hour and sorting capacity of 2 tonnes per hour. The company deals in both basmati and non-basmati rice, however majority (more than 75%) of the company's revenue is generated from sale of basmati rice. The entity is also engaged in the trading of basmati and non-basmati rice. It primarily procures paddy/rice from Haryana, Punjab and U.P. KARNIMATA COLD: ICRA Maintains B Rating in Not Cooperating ---------------------------------------------------------- ICRA Ratings said the ratings for the INR12.00 crore bank facilities of Karnimata Cold Storage Limited (Erstwhile Karnimata Cold Storage Private Limited) continue to remain under 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Term 4.58 [ICRA]B (Stable) ISSUER NOT Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based-Cash 6.22 [ICRA]B (Stable) ISSUER NOT Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based-Working 1.00 [ICRA]B (Stable) ISSUER NOT Capital Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non Fund Based- 0.20 [ICRA]A4 ISSUER NOT Bank Guarantee COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Karnimata Cold Storage Limited (Erstwhile Karnimata Cold Storage Private Limited) (KCSL) had set up its cold storage unit at West Medinipur, West Bengal in 2012, to carry out the business of storage and preservation of potatoes. KCSL has a storage capacity of 25,814 metric tonnes (MT) at present. KPT SPINNING: CRISIL Lowers Rating on INR3.5MM Cash Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of KPT Spinning Mills Private Limited (KPT) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Long Term Loan 2.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Rating downgrade reflects delays in the repayment of term over the past three months, through May 2018. The rating continues to reflect its modest scale- and working capital intensive nature- of operations in the intensely fragmented textile industry. The rating also reflects exposure to fluctuation in raw material prices and its below-average financial risk profile, marked by a high gearing, average debt protection metrics and net worth. These rating weaknesses are partially offset by the benefits it derives from the extensive industry experience of promoters in the textile industry. Key Rating Drivers & Detailed Description Weakness * Delays in the repayment of term loan: KPT has been delaying its repayment of term loan over the past three months, through May 2018. Delays have been on account of temporarily liquidity stretch. * Modest scale of operations: KPT has modest scale of operations as reflected by its revenues of around INR14 crores during 2016-17 (refers to the financial year April 1 to March 31). KPT's scale of operation has remained subdued on account of increasing competition from other new players in the market. Scale of operations is expected to increase, though should remain modest over the medium term. * Large working capital management: KPT has large working capital management as reflected in its gross current asset (GCA) days of 111 days as on March, 2017 due to high debtor and inventory days. Operations are expected to remain working capital intensive over the medium term. * Below-average financial risk profile: KPT's financial risk profile is marked by high gearing, modest networth and average debt protection metrics. KPT has gearing of 1.8 times and networth of INR3.7 crores as on March, 2017. The debt protection metrics are average with negative Net cash accruals to total debt (NCATD) and interest coverage ratio at 0.01 times and 2.3 times, respectively for 2016-17. Debt protection metrics is estimated to have remained average in Fiscal 2018. * Profitability is susceptible to volatility in raw material prices and too fluctuation in forex rates: KPT is a relatively smaller player in the fragmented market, leading to low bargaining power with suppliers and customers. Raw material prices form 60-70 percent of the cost structure. Any significant increase in raw material prices will affect the profitability due to intense competition. Strengths * Promoter's extensive experience: KPT's partners have a long standing experience in the textile industry. The promoter has been in the business for more than one decade. The company is promoted by Mr K P Thangamuthu and Mr Vetrivel. KPT was promoted by Mr K P Thangamuthu and Mr Vetrivel in 2010 and began commercial production in 2011-2012. The company is engaged in the manufacture of cotton yarn (40 counts) and has its manufacturing facility situated in Erode Dist, Tamil Nadu. KUNA IMPEX: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Kuna Impex Private Limited's (KIPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR57.5 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR6.18 mil. Term loans due on April 30, 2020 migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR55.0 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 Incorporated in December 1998, KIPL is engaged in the trading of industrial automation, and electrical and lighting products. The company's head office is in Ahmedabad, Gujarat. L. MADANLAL: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated L. Madanlal (Aluminium) Ltd.'s Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using 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) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 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 June 15, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE L.Madanlal was formed in 1953 as a partnership firm in the name of Lachhminarain Madanlal. M/S MANMADE: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained M/s Manmade'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 BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital 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 February 4, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 2002, M/s Manmade is a partnership firm that is engaged in the manufacture and export of medium-to-high hand-knotted/- woven/-tufted woolen/viscose/silk carpets and rugs. The firm has two partners Mr. Deepak Khanna and his wife Mrs. Aarti Khanna. MAHADEV MOTORS: CRISIL Cuts Rating on INR11MM Loan to B+ -------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Mahadev Motors Private Limited (MMPL) to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Channel Financing 4.05 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Drop Line Overdraft 2.70 CRISIL B+/Stable (Downgraded Facility from 'CRISIL BB-/Stable') Inventory Funding 11.00 CRISIL B+/Stable (Downgraded Facility from 'CRISIL BB-/Stable') Term Loan 1.25 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects a worsening financial risk profile, particularly liquidity. Utilisation of bank limit was 98% for the 12 months through November 2017. Accrual generated is likely to be insufficient to cover maturing repayments in fiscal 2018. TOL/TNW is estimated to be high at 17 times as on March 31, 2018, and should continue this trend if there is no equity infusion. Interest coverage ratio was weak at 1.3 times in fiscal 2018. Business risk profile also weakened in fiscal 2018, despite higher demand for automobiles. Improvement in business risk profile and financial risk profile will remain key rating sensitivity factor over the medium term. The rating continues to reflect MMPL's modest financial risk profile, small scale of operations, and geographic concentration risk in revenue. These weaknesses are partially offset by the promoter's established relationship with the principal, Hyundai Motors India Ltd (HMIL; rated CRISIL A1+). Key Rating Drivers & Detailed Description Weaknesses: * Modest financial risk profile, and stretched liquidity: Financial risk profile is estimated to remain modest in fiscal 2018, due to high total outside liabilities to tangible networth, and weak interest coverage ratio. Because of low accrual, utilisation of bank lines was high at 98% for the 12 months through November 2017. * Geographic concentration risk in revenue, and exposure to intense competition: Intense competition in the auto dealership industry constrains scalability: revenue was modest at nearly INR70 crore in fiscal 2018. Furthermore, presence in just one location makes the company vulnerable to demand and competition in the area. Strength: * Established relationship with the principal: Dealership for HMIL's vehicles began in November 2013, and the promoter has been able to establish a healthy relationship with the principal over the years. Outlook: Stable CRISIL believes MMPL will benefit over the medium term from its association with HMIL, and the sound demand for the latter's cars in the domestic market. The outlook may be revised to 'Positive' if significant increase in revenue or profitability, or substantial equity infusion strengthens financial risk profile. The outlook may be revised to 'Negative' if low cash accrual or stretch in working capital cycle weakens financial risk profile, particularly liquidity. Promoted by Mr. Pradeep Garg, MMPL is a dealer for HMIL's vehicles in Faridabad, Haryana. It has a showroom and a service centre. MANNEY ENGINEERS: Ind-Ra Maintains B+ Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Manney Engineers' Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR53.5 mil. Long-term loans maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 13, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2008, Manney Engineers is engaged in the galvanization of telecom and transmission towers. MANTHAN SOFTWARE: CRISIL Migrates B+ Rating to Not Cooperating -------------------------------------------------------------- CRISIL has been consistently following up with Manthan Software Services Private Limited (Manthan) 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 ---------- --------- ------- Cash Credit/ 20 CRISIL B+/Stable (Issuer Not Overdraft Cooperating; Rating Migrated) facility The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Manthan Software Services Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Manthan Software Services Private Limited is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Manthan Software Services Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. Established in 2003, Manthan, promoted by Mr Atul Jalan and based in Bengaluru, is engaged in software product development and services. The company provides data analytics software products and services primarily for retail and CPG industry. MATRIX BIZCOM: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Matrix Bizcom Services Private Limited's 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 action is: -- INR250 mil. Fund-based working capital limits (Long- term/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 Matrix, 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 Incorporated in September 2015, Matrix is engaged in the business of television and digital content. MATRIX ROLLER: Ind-Ra Retains B Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Matrix Roller Mill Private Limited's (MARF) 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. Long-term loan due on October 2020 migrated to Non-Cooperating Category with IND B (ISSUER NOT COOPERATING) rating; -- INR71 mil. Fund-based working capital limit migrated to Non- Cooperating Category with IND B (ISSUER NOT COOPERATING)/ IND A4 (ISSUER NOT COOPERATING) rating; -- INR29 mil. Proposed fund-based working capital limit migrated to Non-Cooperating Category with Provisional IND B (ISSUER NOT COOPERATING) /Provisional IND A4 (ISSUER NOT COOPERATING) rating; and -- INR16 mil. Proposed long-term loan migrated to Non- Cooperating Category with Provisional IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 20, 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 2012 in Uttar Pradesh, MARF is a private limited company engaged in flour milling. It has a total installed processing capacity of 90,000 metric tons per annum. MEALITE FOODS: CRISIL Lowers Rating on INR5.5MM Cash Loan to D -------------------------------------------------------------- CRISIL has been consistently following up with Mealite Foods Private Limited (MFPL) for obtaining information through letters and emails dated November 24, 2016, January 17, 2016 and March 16, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.5 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL B/Stable Issuer Not Cooperating') Term Loan 3.1 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 MFPL. 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 MFPL 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 MFPL to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B/Stable/Issuer Not Cooperating'. The downgrade reflects delays in repayment of debt obligations, because of its stretched liquidity position. Incorporated in 2013, MFPL manufactures corn flakes, ready to eat packaged snacks such as namkeens, baked snacks, fried snacks and other related products. It has recently started its commercial operations in July 2015 and its manufacturing facilities is located at Rajkot-Gujarat. MITTAL OCEAN: ICRA Moves B+ Rating to Not Cooperating Category -------------------------------------------------------------- ICRA Ratings has moved the ratings for the bank facilities of Mittal Ocean Trade Pvt. Ltd. (MOTPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as [ICRA]B+(Stable)/A4 ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 2.50 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non-fund Based 8.50 [ICRA]A4 ISSUER NOT Limits COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been seeking information from the entity so as to monitor its performance. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA on the basis of the best available information on the issuers' performance. Accordingly, lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the entity. Incorporated in 1999, MOTPL is promoted by Mr. Rajiv Mittal and Mr. Vijay Mittal. Mittal Timber Store (MTS), another group company, and MOTPL are involved in timber trading and procure timber mainly from Singapore, Hong Kong and New Zealand and also from the domestic market. The group's factory, located at Gandhidham (Gujarat), cleans and saws logs to make clean squared timber blocks. MITTAL TIMBER: ICRA Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- ICRA Ratings has moved the ratings for the bank facilities of Mittal Timber Store (MTS) to the 'Issuer Not Cooperating' category. The rating is now denoted as [ICRA]B+(Stable)/A4 ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 2.00 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non-fund Based Limits 9.00 [ICRA]A4 ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been seeking information from the entity so as to monitor its performance. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA on the basis of the best available information on the issuers' performance. Accordingly, lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the entity. Incorporated in 1975, MTS is promoted by Mr. Krishna Kumar Mittal. MTS and, another group company Mittal Ocean Trade Pvt. Ltd (MOTPL) are involved in timber trading and procure timber mainly from Singapore, Hong Kong and New Zealand and also from the domestic market. The group's factory, located at Gandhidham (Gujarat), cleans and saws logs to make clean squared timber blocks. NEW HARYANA: Ind-Ra Keeps B+ Rating in Non-Cooperating Category --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained New Haryana Overseas' Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR95 mil. Fund-based working capital limit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 15, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE New Haryana Overseas is engaged in a rice shelling and milling business, Ambala, Punjab. PALLICKAL AGRO: CRISIL Moves B+ Rating to Not Cooperating Cat. -------------------------------------------------------------- CRISIL has been consistently following up with Pallickal Agro Mills (PAM) for obtaining information through letters and emails dated March 28, 2018, April 10, 2018 and April 16, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 0.25 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Standby Line of 0.75 CRISIL B+/Stable (Issuer Not Credit Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Pallickal Agro Mills. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Pallickal Agro Mills is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Pallickal Agro Mills to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Established in 1999 as a partnership firm by Mr P E Martin and Viji Martin, PAM processes paddy into non-basmati raw and parboiled rice. The firm has its manufacturing facility at Mattoor in the Kalady district of Kerala. POWER & INSTRUMENT: Ind-Ra Migrates BB- Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Power & Instrumentation (Gujarat) Ltd.'s Long-Term Issuer rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR140 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR160 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based limits* migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating. *Includes fund-based sublimit Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 10, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1982, Power & Instrumentation (Gujarat) provides engineering, procurement and construction solutions for the electrical requirements of state-owned companies. PRAYAGRAJ POWER: ICRA Reaffirms D Rating on INR11,493cr Loan ------------------------------------------------------------ ICRA Ratings has reaffirmed the long-term rating at [ICRA]D for the INR12,405-crore bank limits of Prayagraj Power Generation Company Limited. ICRA has also reaffirmed the short-term rating at [ICRA]D for the INR100-crore non-fund based working capital limits of PPGCL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loans 11,493 [ICRA]D; reaffirmed Cash credit 700 [ICRA]D; reaffirmed Non-fund-based limits (derivates) 212 [ICRA]D; reaffirmed Non-fund-based limits (working capital) 100 [ICRA]D; reaffirmed Rationale The ratings reaffirmation takes into account the continued delays in servicing of interest and principal obligations by PPGCL, which operates a 1,980-MW coal-based thermal power plant in Bara tehsil in the Allahabad district of Uttar Pradesh. The ratings continue to factor in the delay in project execution by PPGCL that has resulted in significant cost overrun. The project cost has increased from INR5.44 crore per MW initially to INR7.85 crore per MW due to price variations in boiler-turbine- generator (BTG) contract because of adverse exchange rate fluctuations and increase in interest during construction, civil costs and preliminary expenses. This increase in fixed cost is unlikely to be fully recovered through tariffs as the power purchase agreement (PPA) signed is based on competitive bidding with capacity charges and station heat rate as bidding parameters. Also, PPGCL has quoted non-escalable capacity charge in the bid, which has resulted in lower-than-expected project returns, thereby limiting the debt servicing capability of the company. Further, the project remains exposed to high counterparty credit risk arising out of the poor financial health of Uttar Pradesh- based distribution utilities. Nevertheless, payment security mechanisms in the form of letter of credit, escrow mechanism and third-party sale built in the PPA provide some comfort. However, ICRA takes note of the commencement of generation of all three units with the last 660-MW unit commencing operations from May 26, 2017. Despite commissioning of operations, the operational parameters for the plant remain weak as reflected by high auxiliary consumption and high station heat rate as the plant is operating at low PLFs on account of low working capital limits available to the company. ICRA further takes note of the change in PPGCL's shareholding pattern as lenders have invoked the shares held by the entities of the Jaiprakash Group pledged in their favour. Consequently, SBI Capital Trustee (on behalf of the lenders) holds ~89.5% shares, whereas the remaining shares are held by the entities of the Jaiprakash Group. Previously, the joint lenders forum (JLF) had considered restructuring the debt in accordance with S4A scheme of RBI. However, this restructuring plan did not go through. Going forward, a new resolution plan for the outstanding debt will have to be prepared. Key rating drivers Credit strengths Successful commissioning of all three units: PPGCL is operating a 1,980-MW thermal power plant located in Tehsil Bara, Allahabad. At present, all three units of the plant have commenced generation with the first unit becoming operational in February 2016, the second unit becoming operational in September 2016 and the last unit becoming operational in May 2017. Long-term PPA for 90% capacity: PPGCL has a 25-year PPA with UPPCL for 90% its installed capacity of 1,980 MW. The long-term PPA provides revenue visibility for the company. The capacity charge applicable for this project was bid by the Jaiprakash Group and varies each year, whereas the variable charges are a pass-through. PPGCL also has a fuel supply agreement (FSA) in place with Northern Coalfields Ltd. (NCL) for supply of 6.95-MTPA C/E grade coal. Credit challenges Delay in debt servicing: The company continues to delay its debt obligations with payments to lenders remaining unpaid since February 2017 except LIC which has been unpaid since January 2016. Substantial time and cost overruns: The project has witnessed significant time and cost overruns on account of delay in project execution. The overall cost of the project has increased from INR10,780 crore to INR15,537 crore with major increase in IDC component and cost of equipment. Weak counterparty credit profile: A major portion of PPGCL's generation is purchased by UPPCL, which has a weak credit profile. Any delays by UPPCL in making payments can adversely impact the cash flow position of the company. Weak operational performance of asset: The operational performance of the asset continues to be weak as reflected by higher station heat rate and higher auxiliary consumption. This is on account of low working capital limits available with the company due to which it is unable to buy the requisite amount of coal and hence the PAF is below the normative level. Consequently, the company is booking lower fixed charges than the normative level with the quantum of debt in the SPV already on the higher side, PPGCL's own cash flows seem to be inadequate to service external obligations. PPGCL is operating a 1,980-MW (3, 660 MW units) coal-based thermal power plant at Bara tehsil in Allahabad. The project was awarded via competitive bidding to the Jaiprakash Group by the Government of Uttar Pradesh (GoUP). However, PPGCL had quoted significant portion of capacity charge as non-escalable component in bid and the project cost was increased to INR15,537 crore from INR10,780.5 crore, resulting in significant under-recoveries for the project. The shareholding pattern of PPGCL has changed as lenders have invoked the shares held by the entities of the Jaiprakash Group pledged in their favour. Consequently, SBI Capital Trustee (on behalf of the lenders) holds about 89.5% shares, whereas the remaining shares are held by entities of the Jaiprakash Group. RACHITECH ENGINEERING: CRISIL Reaffirms B+ Rating on INR5.5M Loan ----------------------------------------------------------------- CRISIL has reaffirmed its ratings on bank facilities of Rachitech Engineering Private Limited (REPL) at 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.0 CRISIL A4 (Reaffirmed) Cash Credit 5.5 CRISIL B+/Stable (Reaffirmed) Scale of operations is small because of intense competition due to limited product diversity and fluctuating demand. Turnover declined in fiscal 2017 because of fewer orders from key customer. The operating income for fiscal 2018 is estimated at around INR 13.0 crore. Though, for medium term, company has order book of INR 10.5 crore. Besides, operating profitability, though high, has remained volatile on account of fluctuation in the prices of steel (key raw material). Margin is likely to be 8.2-8.5% over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Small scale of operations: Intense competition from large players has restricted scale, with estimated turnover of INR13.31 crore in fiscal 2018. This limits bargaining power and hence profitability of small players such as REPL. * Working capital-intensive operations: Gross current assets were over 300 days as on March 31, 2018, led by sizeable inventory of 220 days due to delay in approval of orders executed for Isgect Heavy Engineering Ltd (IHEL), which accepts products after inspection. Working capital requirement will remain significant and prone to variations, given the competitive nature of business. * Vulnerability to fluctuations in raw material and foreign exchange (forex) rates: Profitability remains exposed to any sharp movement in raw material prices, compounded by incapability to pass on rise in input rates to customers. Moreover, the company exports almost half of its total revenue to South Africa, Uganda, and Nepal without any definite hedging policy, which further exposes margin to any sharp change in forex rates. Strengths: * Extensive experience of promoters and established client relationship: Presence of over four decades in the engineering capital goods industry has enabled the promoter to understand market dynamics and establish strong relationship with key customers, such as IHEL, Fives Call-KCP Ltd, and Sugar Corporation of Uganda Ltd. Hence, capacity utilisation has been over 60% in the five years through 2018. * Above-average financial risk profile: Higher operating margin led to robust debt protection metrics, reflected in interest coverage and net cash accrual to total debt ratios of 1.7 times and 0.08 time, respectively, for fiscal 2018. Total outside liabilities to tangible networth ratio was 2.51 times as on March 31, 2018, and will remain at a similar level over the medium term in the absence of any debt-funded capital expenditure (capex). Outlook: Stable CRISIL believes REPL will continue to benefit from the extensive experience of its promoter. The outlook may be revised to 'Positive' if the company reports substantial growth in revenue, profitability, and net cash accrual; and demonstrates better working capital management. The outlook may be revised to 'Negative' if decline in revenue and profitability, any large debt-funded capex, or stretch in working capital cycle weakens financial risk profile, especially liquidity. Incorporated in 1989 and promoted by Mr. Rajendra Lavasa, REPL manufactures and exports heavy engineering equipment, including process-specific machinery, boiler components, and electrically operated cranes; which are used in the sugar, cement, power, and construction industries. Operations are managed by Mr Lavasa and his son, Mr Rachit Lavasa. RADHIKA JEWELLERS: Ind-Ra Migrates B+ Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Radhika Jewellers' (RJ) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR65 mil. Fund-based limit migrated to Non Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 18, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1991, RJ is engaged in trading of gold, silver and diamond jewelry. The firm has a 1,200 square meter retail showroom in Vadodara. RJ is managed by Mr. Patadia and family. REDCO HOTELS: CRISIL Moves B+ Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Redco Hotels Private Limited (RHPL) for obtaining information through letters and emails dated April 18, 2018 and April 23, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 45 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Redco Hotels Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Redco Hotels Private Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Redco Hotels Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. RHPL was incorporated in 2008 by Mr Afzal Ladak, his son, Mr Shakeel Ladak and son-in-law, Mr Iqbal Makani. The company has completed the construction of a four-star hotel at Chakan in Pune (Maharashtra) in March 2013. RHPL began commercial operations from September 2013. The company has tied-up with Marriott International to manage operations of the Courtyard by Marriott. RISHAB GUM: CRISIL Withdraws B Rating on INR4MM Cash Loan --------------------------------------------------------- CRISIL has been consistently following up with Rishab Gum And Chemicals (RGC) for obtaining information through letters and emails dated March 22, 2018 and March 27, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating; Migrated from 'CRISIL B/Stable'; Rating Withdrawn) Foreign Bill 0.5 CRISIL B/Stable (Issuer Not Purchase Cooperating; Migrated from 'CRISIL B/Stable'; Rating Withdrawn) Packing Credit 3.0 CRISIL A4 (Issuer Not Cooperating; Migrated from 'CRISIL A4'; Rating Withdrawn) Proposed Long Term 0.52 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Migrated from 'CRISIL B/Stable'; Rating Withdrawn) Term Loan 0.48 CRISIL B/Stable (Issuer Not Cooperating; Migrated from 'CRISIL B/Stable'; Rating Withdrawn) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These 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 RGC. 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 RGC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has migrated the ratings on the bank facilities of RGC to 'CRISIL B/Stable/CRISIL A4' Issuer not cooperating' from 'CRISIL B/Stable/CRISIL A4'. CRISIL has withdrawn its rating on the bank facilities of RGC on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Rishab Gum and Chemicals (RGC) is a partnership concern, which is engaged in the processing of cassia seeds and production of gum powder and sale of guar gum splits, churi and korma. The firm was established in 2012 and commenced production in 2013.The registered office of the firm is in Barmer, Rajasthan. S. S. WAREHOUSING: CRISIL Assigns B+ Rating to INR6MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of S. S. Warehousing (SSW). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 6 CRISIL B+/Stable (Assigned) The rating reflects the firm's modest financial risk profile because of limited accretion to reserves and limited capital infusion and geographical and customer concentration in revenue. These weaknesses are partially offset by moderate debt service coverage ratio (DSCR) and promoters' extensive experience and funding support. Analytical Approach Unsecured loans of INR0.71 crore from promoters have been treated as neither debt nor equity as these are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Geographical and customer concentration in revenue: The firm has a godown in Punjab and generates entire leasing revenue from a single customer. This results in geographic and customer concentration in revenue. * Modest financial risk profile: Modest networth of INR1.3 crore as on March 31, 2017, restricts financial flexibility. Strengths * Moderate DSCR: The DSCR is likely to remain at 1.1 times over the repayment tenure. * Promoters' extensive experience and funding support: Longstanding presence of promoters in Punjab's agriculture and related sectors will continue to support business in case of exigency. Outlook: Stable CRISIL believes SSW will continue to benefit from promoters' experience and funding support. The outlook may be revised to 'Positive' if sustained ramp up in lease rentals strengthens financial risk profile. The outlook may be revised to 'Negative' if financial risk profile, particularly liquidity, weakens further because of unexpected termination of lease agreement or significant delay in receiving rent. Set up in 2010 in Sirhind, Punjab, as a partnership firm by Mr Gagandeep Singh, Mr Sukhjit Singh, Ms Jatinder Kaur, and Ms Khuspreet Kaur, SSW has constructed a godown on an 8-acre land leased to the Punjab State Government. SAMPURN AGRI: Ind-Ra Maintains B Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sampurn Agri Ventures Pvt. Ltd.'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 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Fund-based limit maintained in non-cooperating category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR80 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 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sampurn Agri Ventures generates biogas from agriculture waste. SANJAY DIESELS: Ind-Ra Maintains B+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sanjay Diesels' 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: -- INR70 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR80 mil. Non-fund-based working capital limit maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 4, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sanjay Diesels manufactures silent diesel power generating sets and electrical control panels in India and also assembles diesel generator sets and provides turnkey projects for power plant installations. SANKALP ENGINEERING: ICRA Keeps D Rating in Not Cooperating ----------------------------------------------------------- ICRA Ratings said the rating for the INR84.09 crore bank facilities of Sankalp Engineering and Services Private Limited continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 45.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating continues to remain in the 'Issuer Not Cooperating' category Fund based- Term Loan 39.09 [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category The rating takes into account continued delays in debt servicing by the entity. As part of its process and in accordance with its rating agreement with Sankalp Engineering and Services Private 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. Incorporated in 1996, Sankalp Engineering and Services Private Limited manufactures couplings under the tubular division and forged components under the non-tubular division. These products find their applications in diverse industries such as oil and gas, automobile and general engineering. The company is a subsidiary of Innoventive Industries Limited, which acquired 51% of Sankalp Engineering and Services Private Limited's equity in the year 2008. SAUMIL IMPEX: CRISIL Reaffirms B Rating on INR17.76MM Term Loan --------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities Saumil Impex Private Limited (KSI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.25 CRISIL B/Stable (Reaffirmed) Foreign Exchange Forward 0.75 CRISIL A4 (Reaffirmed) Funded Interest Term Loan 1.54 CRISIL B/Stable (Reaffirmed) Working Capital Term Loan 17.76 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10.64 CRISIL B/Stable (Reaffirmed) Letter of Credit 34.56 CRISIL A4 (Reaffirmed) The ratings continue to reflect the company's weak financial risk profile because of large long-term debt, and susceptibility of profitability to volatile scrap prices. These weaknesses are partially offset by the extensive experience of the promoters in the ship-breaking industry and the company's comfortable liquidity. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: Networth remains modest at INR5.92 crore as on March 31, 2018. With projected operating margin of 7%, networth is expected at INR6-7 crore over the medium term. Networth has declined significantly from INR11.10 crore as on March 31, 2015, due to significant losses in fiscals 2015 and 2016. Capital structure is weak, indicated by high gearing of 3.81 times as on March 31, 2018. Usually ship-breakers have only short- term debt in the form of cash credit. However, restructuring of devolved letter of credit led to considerable working capital term loan of INR19.00 crore for SIPL in a business where cash flow is inconsistent. As a result, SIPL has high gearing of above 3 times which is rarely seen in the industry. Therefore, financial risk profile of SIPL remains constrained. * Susceptibility of profitability to volatility in scarp prices: SIPL's revenue comes from sale of scrap in the domestic market. Scrap price is a function of commodity prices, which are traded globally on exchanges. Therefore, profitability is susceptible to volatility in scrap prices. Strengths * Extensive experience of the promoters: The promoters' experience of 20 years in the ship-breaking industry will support the business as they will be able to time purchase of ship depending on the prevailing market conditions. * Comfortable liquidity: SIPL has fixed deposits of INR3.50 crore against LC obligation of INR7.59 crore due in July 2018. With inventory of INR5.00 crore expected to be sold by June 2018, SIPL should have sufficient funds to meet the LC obligation. Outlook: Stable CRISIL believes SIPL will continue to benefit from its promoters' experience in the ship-breaking industry. The outlook may be revised to 'Positive' if higher-than-expected revenue and profitability leads to improved financial risk profile. The outlook may be revised to 'Negative' if substantially low profitability weakens the financial risk profile. SIPL, incorporated in 1991 by Mr Kishore Parikh, is engaged in ship-breaking. It is based in Alang (Gujarat). The company buys old ships and breaks them into steel plates, which it supplies to rolling mills in Gujarat. SHAH LAXMI: ICRA Withdraws B+ Rating on INR3.5cr LT Loan -------------------------------------------------------- ICRA Ratings has withdrawn the long-term rating of [ICRA]B+ with a Stable outlook and the short-term rating of [ICRA]A4 assigned to the INR9.95-crore1bank facilities of Shah Laxmi Narayan Satish Chandra Exim Private Limited in accordance with ICRA's policy on withdrawal and suspension. ICRA had earlier moved the ratings to the 'ISSUER NOT COOPERATING' category due to non-submission of monthly 'No Default Statement' ("NDS") by the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term-Fund Based/CC 3.50 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Withdrawn Long Term/Short Term-Non Fund Based 6.45 [ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING; Withdrawn Rationale The ratings are withdrawn in accordance with ICRA's policy on withdrawal and suspension at the request of the company on receipt of the No Objection Certificate provided by the banker. Outlook: Not Applicable SLSEPL was incorporated in June 2013 and commenced its business operations in January 2014. The company was formed as a part of the Shah Laxmi Group's efforts to corporatise its business operations. Accordingly, the Group has gradually shifted all its business operations to SLSEPL from Shah Laxminarayan Satishchandra (a proprietorship firm), which was set up in 1963 by the Late. Mr. Laxmi Narayan at Jodhpur. Over the years, the Group has been trading in various mercantile products. At present, the business is handled by Mr. Satish Chandra (son of Laxmi Narayan) and his sons Mr. Hemant and Sharad. The company has its registered office at Jodhpur with its branch in Mumbai. SHRI GANESH: ICRA Moves D Rating to Not Cooperating Category ------------------------------------------------------------ ICRA Ratings has moved the rating for the INR6.00 crore fund-based and non-fund based bank limits of Shri Ganesh Fire Equipments (P) Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 3.00 [ICRA]D ISSUER NOT COOPERATING; Based/CC Rating moved to the 'Issuer Not Cooperating' category Short Term- 3.00 [ICRA]D ISSUER NOT COOPERATING; Non-Fund Based Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available and limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Analytical approach SGFL, an ISO 9001:2008 certified company, manufactures fire fighting vehicles such as water tenders, foam tenders, dry chemical powder tenders, crash fire tenders, and trailer fire pumps and special purpose vehicles such as water cannon 1 100 lakh vehicles for riot control operations. SGFL has three manufacturing facilities, of which two are located in Delhi and one is in Vaishali, Bihar. SRI RAMA EDUCATIONAL: CRISIL Assigns B+ Rating to INR33.23MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank loan facilities of Sri Rama Educational Trust (SRET). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Fund- Based Bank Limits 2.77 CRISIL B+/Stable (Assigned) Long Term Loan 33.23 CRISIL B+/Stable (Assigned) Bank Guarantee 1.00 CRISIL A4 (Assigned) Cash Credit 5.00 CRISIL B+/Stable (Assigned) The ratings reflect the company's modest scale of operations, high degree of geographical concentration in its revenue profile, its small net-worth limiting its financial flexibility, and its susceptibility to intense competition and adverse regulatory changes, if any, in the education sector. These ratings weakness are partially offset by extensive industry experience of its promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations, high degree of geographical concentration in its revenue profile, its small net-worth limiting its financial flexibility: The Trust has modest scale at INR49.39 Cr as on March 31, 2017 and has complete revenues derived from AP along with small net worth of INR6 Cr as on March 31, 2017 limiting the financial flexibility * Susceptibility to intense competition and adverse regulatory changes, if any, in the education sector: Education sector has huge number of players subjecting the trust to intense competition and is exposed to regulatory changes that can have impact on the operations of trust. Strengths * Extensive industry experience of its promoters: The promoter Mr. Allury Murthy Raju is an industrialist and a politician. He is closely associated with All India Congress committee (AICC). His brother Mr. Sri Alluri Satyanarayana Raju (one of the trustees in SRET) had served as general secretary in AICC in the past. Both the promoters have extensive experience in education sector. Outlook: Stable SRET will maintain its established position in the education sector, given the track record and quality infrastructure. The outlook may be revised to 'Positive' in case of significant improvement in the topline while maintaining operating margin, resulting in higher cash accrual, or sizeable equity infusion leading to improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' if larger-than-expected, debt-funded capital expenditure weakens the financial risk profile, or if occupancy rates decline, or the ongoing capex gets delayed, resulting in weak liquidity. Established in 2000, SRET runs a medical college at Vizianagaram (Andhra Pradesh) in the name of Maharaja Institute of Medical Sciences and also runs a general hospital. At present, the medical college offers undergraduate courses including Bachelor of Medicine Bachelor of Surgery (MBBS), Bachelor of Homoeopathic Medicine and Surgery (BHMS), clinical and non-clinical post graduate courses and para medical courses SRET has recorded net losses of INR2.18 Crore on Operating income of INR49.39 Cr for FY17 vis-a-vis PAT of INR1.84 Cr on Operating Income of INR50.70 Cr for FY16. SRINIVASA AGRO: Ind-Ra Lowers Long-Term Issuer Rating to 'B+' ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Srinivasa Agro Products' (SAP) Long-Term Issuer Rating to 'IND B+' from 'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating action is: -- INR180 mil. Fund-based working capital facilities downgraded with IND B+/Stable/IND A4 rating. KEY RATING DRIVERS The downgrade reflects a substantial decline in SAP's revenue to INR573 million in FY18 (provisional) from INR764 million in FY17, due to lower receipt of orders. However, during FY17, revenue grew to INR764 million (FY16: INR657 million) on account of higher production and increased orders from customers. Consequently, EBITDA margin improved to 3.6% in FY17 (FY16: 3.5%), interest coverage (operating EBITDA/gross interest expense) to 1.4x (1.5x) and net leverage (total adjusted net debt/operating EBITDAR) to 5.4x (7.0x). Despite this, the scale of operations remained small and credit metrics continued to be modest. The ratings, however, remain supported by SAP's comfortable liquidity position as indicated by 62.22% average use of its fund- based facilities over the 12 months ended March 2018 and SAP's promoters' two-decade-long experience in processing of cotton oil. RATING SENSITIVITIES Positive: A substantial growth in the top line and stable operating profitability, leading to a sustained improvement in the credit metrics, will lead to a positive rating action. Negative: Any further decline in operating profitability, resulting in a sustained deterioration in the credit metrics and a stretch in the liquidity position, will lead to a negative rating action. COMPANY PROFILE Incorporated in 1991, SAP is engaged in delintering and processing of cotton seed. The company's manufacturing facility, located at Guntur, Andhra Pradesh, has an installed capacity of 400 metric tons per day. SUDESH COTTON: CRISIL Migrates B+ Rating to Not Cooperating Cat. ---------------------------------------------------------------- CRISIL has been consistently following up with Sudesh Cotton Ginning and Pressing Factory (SCGPF) for obtaining information through letters and emails dated February 27, 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 3 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Warehouse Receipts 6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sudesh Cotton Ginning and Pressing Factory. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sudesh Cotton Ginning and Pressing Factory 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 Sudesh Cotton Ginning and Pressing Factory to 'CRISIL B+/Stable Issuer not cooperating'. SCGPF, based in Rajasthan, is a partnership firm established in 1997. It is engaged in ginning and pressing of cotton. The firm also trades in various other commodities such as binola oil and cake, mustard seeds, guar, moong dal, barley, and wheat. It is owned by Mr. Dharam Pal and Mrs. Sudesh Rani. SUNGRO SEEDS: Ind-Ra Hikes Issuer Rating to BB+, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Sungro Seeds Private Limited's (SSPL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR131.25 mil. (reduced from INR250 mil.) Term loan due on April 28, 2021 upgraded with IND BB+/Stable rating; -- INR250 mil. (reduced from INR335 mil.) Fund-based working capital limit upgraded with IND BB+/Stable rating; -- INR10 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR85 mil. Proposed fund-based working capital limit* assigned with Provisional IND BB+/Stable rating. *The above ratings are provisional and shall be confirmed upon the sanction and execution of loan documents for the above facilities by SSPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The upgrade reflects a sustained improvement in SSPLP's credit metrics in FY17, with interest coverage (operating EBITDA/gross interest expense) improving to 2.3x (FY16: 1.5x, FY15: 1.0x) and net leverage (total adjusted net debt/operating EBITDAR) to 6.7x (8.8x, 10.6x). The improvement in the credit metrics was on account of a reduction in total debt. Ind-Ra expects the credit metrics to have improved further in FY18 on account of the reduction in total debt. Revenue grew to INR1,278 million in FY17 (FY16: INR1,185 million) owing to an increase in sales. However, EBITDA margins were almost stable at 18.0% in FY17 (FY16: 17.9%). The ratings are, however, constrained by SSPLP's elongated net cash conversion cycle (FY17: 378 days, FY16: 410 days) due to high inventory holding period (411 days, 537 days). The high inventory levels insulate the company from scarcity of raw materials in case of adverse climatic conditions. Despite the long net cash conversion cycle, the company had a comfortable liquidity position because the company used unsecured loans to fund its working capital requirements. Its average use of the working capital limits was 20.7% during the 12 months ended April 2018. However, the ratings are supported by the promoters' more than two and a half decades of experience in the production of seeds. RATING SENSITIVITIES Negative: Any decline in revenue or EBITDA margins leading to deterioration in the credit metrics will be negative for the ratings. Positive: A sustained improvement in revenue and EBITDA margins, leading to a sustained improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE Established in 1991, SSPL is involved in the research and development, and production of seeds. The company is a part of the Barwale group, which owns Maharashtra Hybrid Seeds Company Limited ('IND A-'/Stable) one of the largest seed producing company in India). SSPL produces both hybrid and open pollinated seeds. SSL has an established presence in the industry across multiple states in India. SUNSHAKTI OIL: CRISIL Moves B Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Sunshakti Oil Refinery Private Limited (SORPL) for obtaining information through letters and emails dated March 6, 2018, April 6, 2018 and April 12, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Letter of Credit 3 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Long 0.9 CRISIL B/Stable (Issuer Not Term Bank Loan Cooperating; Rating Migrated) Facility Rupee Term Loan 1.1 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sunshakti Oil Refinery Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sunshakti Oil Refinery 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 Sunshakti Oil Refinery Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. SORPL, incorporated in 2011, refines oil. The company is promoted by Mumbai-based Gala family and operations are managed by Mr Vishal Gala. Its manufacturing unit is at Vada in Tilgaon. SUYASH MOTORS: CRISIL Migrates B+ Rating to Not Cooperating ----------------------------------------------------------- CRISIL has been consistently following up with Suyash Motors (Unit of Patton Logistic Services Private Limited) (SM) 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 2.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Electronic Dealer 7.0 CRISIL B+/Stable (Issuer Not Financing Scheme Cooperating; Rating Migrated) (e-DFS) Term Loan 1.45 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Suyash Motors (Unit of Patton Logistic Services Private Limited). Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Suyash Motors (Unit of Patton Logistic Services Private Limited) is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Suyash Motors (Unit of Patton Logistic Services Private Limited) to 'CRISIL B+/Stable Issuer not cooperating'. SM is a unit of PLSL, which was set up in 2005; SM began operating under PLSL in 2012. SM is an authorised dealer of TML's passenger vehicles and operates through a showroom and workshop in Varanasi and two sub outlets in Chandauli and Babatpur (all in Uttar Pradesh). The operations are managed by Mr Sachin Talwar. VIJAYASREE FOODS: CRISIL Reaffirms B+ Rating on INR6MM Loan ----------------------------------------------------------- CRISIL has reaffirmed its ratings of 'CRISIL B+/Stable/CRISIL A4' on the bank facilities of Vijayasree Foods (VF). The ratings continue to reflect VF's modest scale of operations, susceptibility to changes in paddy prices and government regulations, and working capital intensive nature of operation. These rating weaknesses are partially offset by the partners' extensive experience in the rice milling industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 (Reaffirmed) Cash Credit 6 CRISIL B+/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weakness * Modest scale of operations and a modest net worth: Operations remain modest marked by revenue of 20.89 Cr in 2016-17 due to intense competition in the rice mill industry. Net worth as on March 31, 2018 is estimated at INR4.7 crores. * Susceptibility paddy prices and regulations: Profitability is susceptible to volatile paddy prices and changes in government regulations. Operating margin has been volatile in the range of 2.08%-4.72% over the last there years ended 2016-17. * Working capital intensive nature of operation: Working capital intensive nature of operation marked by Gross current asset (GCA) of 169 days owing to inventory of 96 days and debtors of 65 days as on March 31, 2017. Strengths * Extensive experience of the partners: Benefits from the partners' extensive experience and established customer relationships should continue to support the business. Outlook: Stable CRISIL believes VF will continue to benefit over the medium term from the partners' extensive experience. The outlook may be revised to 'Positive' if revenue and profitability improve substantially and sustainably, or if sizeable equity infusion considerably strengthens net worth. Conversely, the outlook may be revised to 'Negative' if a steep decline in profitability, significant deterioration in capital structure (caused most likely by a large debt-funded capital expenditure) or stretch in working capital cycle weakens financial metrics. VF is a partnership firm set up by Mr. MKV Rami Reddy and Mr. MLGK Avathar Reddy, and their families in 2011. It mills and processes paddy into rice, and generates by-products such as broken rice, bran, and husk. The firm is based in Tenali District, Andhra Pradesh. WANDERLAND REAL: ICRA Assigns B+ Issuer Rating ---------------------------------------------- ICRA Ratings has assigned an issuer rating of [ICRA]B+ to Wanderland Real Estates Pvt. Ltd. The outlook on the long-term rating is 'Stable'. Rationale The assigned rating favourably factors in the extensive experience of the promoter - Kalani Group - in real estate development in Indore - the Group has already developed 33 lakh sqft area. The rating further takes into account the project's attractive location and diversified offering (integrated township). The rating favorably considers the low regulatory risk as all the approvals for project construction are in place and the low project execution risk as 80% of the total construction cost has already been incurred as on December 31, 2017. The rating also factors in the healthy customer built-up 94% of the sales value was collected as on December 31, 2017. The rating, however, is constrained by the funding risk as the company is yet to tie-up funding for the INR206-crore pending project cost. With INR23 crore committed cash flows as on December 31, 2017 and no undrawn debt lines, the funding of the project's pending cost is highly dependent on incremental sales or external support in the form of debt or promoter's contribution. The rating reflects the exposure to sales risk i.e. price risk and demand risk as the company is yet to sell ~14.9 lakh sqft of saleable area. The rating is also restricted by the low profitability of the project. In FY2017, WRPL reported an operating margin and a net margin of 1.1% and 0.6%, respectively. Outlook: Stable ICRA believes that the promoter's extensive experience will help Wanderland Real Estates Pvt. Ltd. to bridge the funding gap. The outlook may be revised to 'Positive' if the construction progress is as per the timeline and sales velocity is robust, with good realizations. The outlook may be revised to 'Negative' if incremental sales are low, leading to funding gap and delay in the project execution. Key rating drivers Credit strengths Strong Parentage: WRPL is a SPV of Kalani Group, which has diversified interests in real estate development, wind energy generation and trade /manufacture of construction inputs, etc. The Group has an established track record in real estate development in Indore, Madhya Pradesh. The Group has, in the past, completed various residential projects in Indore and has successfully built and sold around 33 lakh sq. ft. area. Attractive project location: The project is located on Car-rau road, Indore, which is 8 km away from centre of Indore and 15 km away from Indore Airport. The construction of the Economic Corridor project - a part of the larger Delhi-Mumbai Industrial Corridor (DMIC) - in close vicinity of the township would accelerate social infrastructure development in the area. Moreover, the project being an integrated township provides entire supporting infrastructure in terms of schools, health care facilities, gym, shopping malls-cum-multiplex, theme gardens etc. Low project execution risk: The company has incurred 80% of the total estimated construction cost of INR301 crore. With only INR60 crore construction cost yet to be incurred, the exposure to project execution risk remains low. Healthy collection efficiency: Out of the total sales of INR363 crore as on December 31, 2017, the company has collected INR340 crore. Overall, the collection efficiency remains healthy at 94%. Credit challenges Exposure to funding risk: The company had committed receivables of ~INR23 crore as on December 31, 2017. With INR206 crore cost yet to be incurred, the funding of the project is dependent on incremental sales as well as external debt or promoter's support. Exposure to sales risk: As on December 31, 2017, the company had sold 64% of the total saleable area of 40.8 lakh sqft. With ~15 lakh sqft of area yet to be sold, the project remains exposed to sales risk, i.e. price risk as well as demand risk, given the demand slow down witnessed by the real estate sector. Low profitability: The average realisation from the sold area as on December 31, 2017 stood at INR1,401 per sqft as against the unit project cost of INR1,460 per sqft, reflecting negative profitability of the project. The reported operating margin stood at 1.6% in FY2016 and 1.1% in FY2017. Incorporated in 2006, Wanderland Real Estates Pvt. Ltd. is a part of the Kalani Group. At present, it is developing an integrated township named 'Treasure Fantasy' at Car-Rau road in Rangwasa, Indore. Spread over 190 acres of land, the project comprises plots, commercial and residential buildings (villas and flats), with total saleable area of about 41 lakh sqft. The construction work started in April 2010 and is expected to be completed by March 2022. As of now, the company has completed the construction of plots and row houses, eight out of 14 residential buildings have been completed and the remaining six buildings are under construction. The commercial space has been already developed. WORLDSTAR FABRICS: CRISIL Lowers Rating on INR25MM Cash Loan ------------------------------------------------------------ CRISIL has downgraded its rating on the long term bank loan facilities of Worldstar Fabrics LLP (WF; part of Oneworld group) to 'CRISIL D' from 'CRISIL BB+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL D (Downgraded from 'CRISIL BB+/Stable') The rating downgrade reflects the group's stretched liquidity position marked by on-going delays in repayments and overdrawl in cash credit limits for more than 30 days. As per the discussion with the management and lenders, the abrupt stretch in liquidity is on account of rejection of the group's products by its customers coupled with delayed realization from their customers in April 2018. CRISIL notes that the group shared the No Default Statement (NDS) till March 2018, undertaking that there have been no instances of delays in servicing their debt obligations. Analytical Approach For arriving at the rating, CRISIL has combined the business and financial risk profiles of WF, Oneworld Creations Private Limited (OCPL), Oneworld Industries Private Limited (OIPL), Oneworld Retail Private Limited (ORPL), Ultimo Fabrics Private Limited (UFPL), Oneworld Sourcing (OS), Tissori India Fabrics Pvt Ltd (TIPL), Maison De Couture Pvt Ltd (MDC), Worsted Overseas Trading LLP (WOT), Oneworld Design Studio (ODS) and Zephyr Fabrics (ZF). This is because all these entities, together referred to as the Oneworld group, are in the same line of business and under a common management, and have operational synergies. Key Rating Drivers & Detailed Description * Delay in repayments: Stretched liquidity has resulted in on- going delay in repayment of term loans and payment of interest on working capital facilities. Further fund based working capital facilities have remained overdrawn continuously for more than 30 days. Weakness * Low profitability: Operating margin has been in the 1.9-2.8 per cent range in the three years through fiscal 2017 because of trading nature of business. Strength * Established presence in the textile trading business: The Oneworld group's promoters have around 2 decades of experience in the textile industry. The promoters entered the textile business in 1995, and over the years, have established their presence in the suiting, terry-rayon fabrics and RMG space. Promoted and managed by Mr. Urvil Jani and Mr. Manoj Khushalani, the Oneworld group trades in textile materials. It also sells ready-made garments, manufacturing of which is outsourced. Registered office is in Mumbai. ========= J A P A N ========= TOSHIBA CORP: Times Square TV Coming Down in Cost-Cutting Measure ----------------------------------------------------------------- The Japan Times reports that Toshiba Corp.'s giant TV screen is being removed from a building overlooking New York's Times Square. The move confirms tough times for the scandal-hit electronics giant, the report notes. The report relates that the familiar screen, which features prominently in New York's globally televised New Year's countdowns, is coming down after spending 10-1/2 years as a Times Square landmark. In December 2007, the major electronics and machinery maker installed the light-emitting diode screen to improve its brand recognition outside Japan, the Japan Times recalls. Along with its corporate logo, the screen advertised Toshiba products and played Japanese tourism videos. In November last year, after incurring massive losses from its purchase of U.S. nuclear business Westinghouse that nearly resulted in its delisting, Toshiba decided to remove the screen as a cost-cutting measure, the report says. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on May 22, 2018, Moody's Japan K.K. has placed Toshiba Corporation's Caa1 corporate family rating and senior unsecured debt rating, as well as its Ca subordinated debt rating on review for upgrade. At the same time, Moody's has affirmed Toshiba's commercial paper rating of Not Prime. The rating review follows Toshiba's announcement that it has received all regulatory approvals and satisfied all conditions for the JPY2 trillion sale of Toshiba Memory Corporation (TMC). ================= S I N G A P O R E ================= CFG PERU: Trustee Allowed to Conduct Rule 2004 Discovery on HSBC ---------------------------------------------------------------- William Brandt, the Court-appointed chapter 11 trustee of CFG Peru, filed a motion for an order authorizing issuance of subpoenas to Hongkong Shanghai Banking Corporation Limited directing production of documents and examination of witnesses and granting related relief. The HSBC-HK opposed the motion. Upon analysis of the arguments presented, Bankruptcy Judge James L. Garrity, Jr. overrules the objection and grants the motion. In support of his motion, the Trustee contends that "over the last two years, HSBC-HK has spearheaded an aggressive campaign to obtain repayment of its loans . . . even at the risk of disrupting the operations of the CF Group and to the possible detriment of CFG Peru and its other creditors and stakeholders." He complains that in addition to demanding and receiving repayment of approximately $102 million of its loans in December 2014, applying ex parte for the appointment of the JPLs in Hong Kong and the Cayman Islands, and foisting the Deed of Undertaking on the Debtors, HSBC-HK may have interfered with the operation of the Peruvian Business by communicating directly with the CF Group's suppliers, customers, working capital providers, and employees. He also says that HSBC-HK, for its own benefit, attempted to acquire the claims of certain creditors of CFGI and Copeinca in order to interfere with the insolvency proceedings then pending against them in Peru. In substance, the Trustee contends that this is a textbook case for granting Rule 2004 discovery. He explains that to date, his understanding of HSBC-HK's actions in regard to the Debtors and the Peruvian OpCos has been based solely on publicly available information. He maintains that if he is permitted to take Rule 2004 discovery of HSBC-HK, he will be able to gain a thorough understanding of HSBC-HK's conduct, including the extent, if any, to which HSBC-HK interfered with the CF Group's relationships with its lenders, suppliers, and trade counterparties, constrained the CF Group's liquidity, and negatively impacted the CF Group's ability to resume normal operations. HSBC-HK maintains that, as a "threshold matter," the Trustee should be denied discovery since HSBC-HK has no relationship, contractual or otherwise, with CFG Peru, that it is not, and never has been, a creditor of CFG Peru, and that it did not file a claim against CFG Peru. The Court finds no merit to that contention. Although the Trustee was appointed only in CFG Peru's chapter 11 case, he filed the Motion in the jointly-administered cases, including those of CFIL, CFGL, Smart Group and N.S. Hong, and can investigate the claims of competing creditors, like HSBC-HK, in those cases. Moreover, and in any event, the scope of Rule 2004 extends beyond the creditors of a debtor. Indeed, "[b]ecause the purpose of the Rule 2004 investigation is to aid in the discovery of assets, any third party who can be shown to have a relationship with the debtor can be made subject to a Rule 2004 investigation." Further, HSBC-HK argues that the Court should deny the motion because the Trustee's pursuit of Rule 2004 discovery at this time is at odds with the Court's mandate that he focus his efforts on maximizing the value of the Peruvian Business for the benefit of all creditors. It also argues that, in any event, the requested discovery is premature since if the Trustee is successful in maximizing the value of the Debtors' interests in the Peruvian OpCos, he may realize enough value to satisfy estate creditors in full and need not pursue litigation against HSBC-HK or any other party. Id. To be sure, part of the Court's rationale in appointing the Trustee for CFG Peru was that he would be "in the best position to evaluate the optimal way to maximize the value of the Peruvian Business and to determine how to realize that value for the benefit of the Debtors' estates and creditors." Trustee Decision at 47-48. The Trustee has fully embraced that challenge and is actively pursuing that goal. In seeking the discovery, the Trustee is acting in furtherance of his obligation to investigate CFG Peru's assets and financial condition. In appointing the Trustee the Court did not in any way limit the Trustee's exercise of his statutory duties. Moreover, there is nothing inconsistent with the Trustee's request to conduct Rule 2004 discovery and this Court's mandate that he maximize the value of the Peruvian Business since the value of claims asserted against the Peruvian OpCos may impact the Trustee's assessment of how best to realize that goal. Nor is there good reason to stay discovery until after the Trustee has resolved the many issues related to the operations of the Peruvian Business and how to best maximize the value of that business for the benefit of CFG Peru's estate and its creditors. HSBC-HK also contends that the motion must be denied because the discovery "topics" listed in the motion that the Trustee intends to focus on are objectionable because: (1) they are vague and/or overbroad; (2) they seek information from HSBC-HK that could and should be more easily obtained directly from the Debtors; (3) they seek information that is in the possession of other parties, including parties such as the JPLs for whom HSBC-HK does not act or speak; (4) they seek information that is likely to be privileged or subject to restrictions on disclosure from the laws of other jurisdictions; (5) the Trustee has not demonstrated the necessity of any of the information he requests; (6) the costs of compliance would far outweigh the benefit to the Trustee's mandate; and (7) certain topics have no conceivable relevance whatsoever to these proceedings. The Court disagrees. The topics listed in the Motion are neither vague nor overbroad and while some of the information that the Trustee is seeking may be obtained directly from the Debtors, that does not bar the discovery request. The Trustee, therefore, is authorized to conduct Rule 2004 discovery of HSBC-HK with respect to the matters set forth in the motion. The bankruptcy case is in re: CFG PERU INVESTMENTS PTE. LTD. (SINGAPORE), Chapter 11, Debtor, 16-11914 (JLG)(Bankr. S.D.N.Y.). A full-text copy of the Court's Memorandum Decision and Order dated April 26, 2018 is available at https://bit.ly/2GzKFiP from Leagle.com. CFG Peru Investments Pte. Limited, Debtor, represented by Matthew Scott Barr -- matt.barr@weil.com -- Weil, Gotshal & Manges LLP. William J. Brandt, Jr., Trustee, represented by Christopher R. Donoho, III -- chris.donoho@hoganlovells.com -- Hogan Lovells LLP, Jay M. Goffman -- jay.goffman@skadden.com -- Skadden, Arps, Slate, Meagher & Flom LLP, Jordan Harap -- jordanharap@quinnemanuel.com - - Quinn Emanuel Urquhart & Sullivan, Lisa Laukitis -- lisa.laukitis@skadden.com -- Skadden, Arps, Slate, Meagher & Flom LLP & James C. Tecce -- jamestecce@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, LLP. William A. Brandt Jr., Trustee, represented by Lisa Laukitis, Skadden, Arps, Slate, Meagher & Flom LLP & James C. Tecce, Quinn Emanuel Urquhart & Sullivan, LLP. United States Trustee, U.S. Trustee, represented by Susan D. Golden, Office of United States Trustee & Richard C. Morrissey, Office of the U.S. Trustee. About CFG Peru Investments Pte. Limited (Singapore) China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. The petition was signed by Ng Puay Yee, chief executive officer. The cases are assigned to Judge James L. Garrity Jr. At the time of the filing, China Fishery Group estimated its assets at $500 million to $1 billion and debts at $10 million to $50 million. Weil, Gotshal & Manges LLP has been tapped to serve as lead bankruptcy counsel for China Fishery and its affiliates other than CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal replaced Meyer, Suozzi, English & Klein, P.C., the law firm initially hired by the Debtors. The Debtors have also tapped Klestadt Winters Jureller Southard & Stevens, LLP as conflict counsel; Goldin Associates, LLC, as financial advisor; and RSR Consulting LLC as restructuring consultant. On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11 trustee for CFG Peru Investments Pte. Limited (Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP, serves as special litigation counsel; and Epiq Bankruptcy Solutions, LLC, as notice and claims agent. FIRST SHIP: Gets US$18M Loan Offer to Refinance Chemical Tankers ---------------------------------------------------------------- Rachel Mui at The Strait Times reports that First Ship Lease Trust said on May 22 it has secured a loan offer to refinance its remaining two chemical tankers and completed a US$7.25 million bond issue. In a filing to the Singapore Exchange, FSL Trust Mangement said it had on May 17 accepted a bank offer for a senior secured amortising term loan of up to US$18 million to refinance its tankers, FSL New York and FSL London, the Strait Times relates. The offer is subject to, among other things, entry by the parties into definitive transaction documentation, the report says. According to the report, the trustee-manager also said that its issue of redeemable 7 per cent convertible bonds to raise US$7.25 million was completed on May 21. Among other things, the deal was conditional upon approval from SGX for the listing and quotation of up to 127.5 million new units on SGX's mainboard. The Strait Times notes that FSL Trust Mangement has made an application to list the new units to be allotted and issued upon the conversion of the bonds, and the parties have agreed to waive the foregoing condition, provided it is satisfied within 10 business days of May 21. The trustee-manager also noted that the Singapore High Court has granted an extension of time to June 29, 2018, for the company to convene a meeting to consider a proposed scheme of arrangement to facilitate the extension of a syndicated loan facility due on Dec. 20, 2017, the report adds. "The trust remains in a substantial net equity position and the business and operations of the trust will continue in the normal course," FSL Trust Management said. First Ship Lease Trust is a shipowner and a provider of leasing services on a long-term bareboat charter basis to the international shipping industry. The Trust has a diversified portfolio of modern and high-quality vessels, comprising of containerships, product tankers, chemical tankers and crude oil tankers. HYFLUX LTD: SIAS to Organize Meetings in Due Course --------------------------------------------------- The Business Times reports that Hyflux has agreed to meet with its stakeholders at townhall meetings to be organised by investor advocacy group, the Securities Investors Association (Singapore) (SIAS). These meetings with shareholders, noteholders, perpetual securities holders and preference shareholders will be organised in due course, SIAS said in a press statement, BT relays. At a meeting with SIAS president David Gerald held on May 23, Hyflux's CEO Olivia Lum also extended the reassurance that the firm will actively engage SIAS in its efforts to reorganise its business and address its debt woes, according to the report. BT adds that SIAS also called on retail investors to extend Hyflux room to reorganise its business. "The company is doing its best, given the circumstances, to maintain value (for their retail investors) but they do need time to achieve this outcome," the advocacy group, as cited by BT, said. Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2018, Hyflux Ltd. said that the Company and five of its subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High Court of the Republic of Singapore pursuant to Section 211B(1) of the Singapore Companies Act to commence a court supervised process to reorganize their liabilities and businesses. The Company said it is taking this step in order to protect the value of its businesses while it reorganises its liabilities. The Company has engaged WongPartnership LLP as legal advisors and Ernst & Young Solutions LLP as financial advisors in this process. ********* 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 ***