/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180530.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 Wednesday, May 30, 2018, Vol. 21, No. 106 Headlines A U S T R A L I A EXCEDO CONTRACTING: Second Creditors' Meeting Set for June 5 INGAN PTY: First Creditors' Meeting Set for June 6 MATCHBYTE CONSULTANTS: Directors Hope to Revive Firm Thru DOCA MODCON CARPENTRY: Second Creditors' Meeting Set for June 6 RETAIL FOOD: Appoints Richard Hinson as New CEO C H I N A ANBANG INSURANCE: Says It Has No Plans to Sell Assets CBAK ENERGY: Incurs US$2.56 Million Net Loss in First Quarter CEFC CHINA: CITIC Unit Takes Board Chairmanship in CEFC Europe CHINA COMMERCIAL: Posts US$386,000 Net Loss in First Quarter FUSHUN SPECIAL: Faces Risk of Delisting Over Restatements I N D I A ANAND MOTOR: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating ANJANEYA JEWELLERY: CRISIL Reaffirms B Rating on INR20MM Loan APLAB LIMITED: ICRA Retains D Rating in Not Cooperating Category ARKA CARBON: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ASIAN LAKTO: ICRA Reaffirms B+ Rating on INR13cr LT Loan BAREILLY PLY: CRISIL Assigns B+ Rating to INR5.5MM Term Loan BHOLA NATH: CRISIL Migrates B Rating to Not Cooperating Category BHUVAN WHEELS: CRISIL Migrates B- Rating to Not Cooperating BINANI CEMENT: Lenders Vote in Favor of Ultratech's Offer BRIGHTWAY CONTRACTORS: CRISIL Reaffirms B Rating on INR4MM Loan BSL ENGINEERING: CRISIL Reaffirms B Rating on INR1MM Cash Loan D C METALS: ICRA Maintains D Rating in Not Cooperating Category DURGA KRISHNA: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating EAST COAST DISTRIBUTORS: CRISIL Ups INR18MM Loan Rating to B+ FORTIS HEALTHCARE: ICRA Cuts Rating on INR500cr Loan to D GOEL FOOD: CRISIL Migrates B+ Rating to Not Cooperating Category GOKUL STEELS: Ind-Ra Hikes Long-Term Issuer Rating to 'BB-' GOLDSTAR METAL: ICRA Retains D Rating in Not Cooperating Category HARI KRIPA: ICRA Maintains B Rating in Not Cooperating Category ISHANIKA HOTELS: CRISIL Moves B Rating to Not Cooperating IVANTA CERAMICS: Ind-Ra Assigns 'BB-' LT Rating, Outlook Stable JAGSUN AGRO: CRISIL Migrates B Rating to Not Cooperating Category JAI BHARAT: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating JALNA SIDDHIVINAYAK: Ind-Ra Assigns BB- LT Rating, Outlook Stable JEET HOME: CRISIL Moves D Rating to Non-Cooperating Category KAMAL KRISHNA: Ind-Ra Lowers Long-Term Issuer Rating to 'D' MAA KALI: ICRA Maintains B+ Rating in Not Cooperating Category MAGADH PRECISION: ICRA Moves D Rating to Not Cooperating Category MAISON DE COUTURE: CARE Lowers Rating on INR28.82cr Loan to D MPOWER INFRATECH: Ind-Ra Maintains BB+ Rating in Non-Cooperating NURNEHER AGRO: CARE Assigns B+ Rating to INR6.83cr LT Loan PALAK FERRO: ICRA Maintains D Rating in Not Cooperating Category QUAD LIFESCIENCES: Ind-Ra Affirms 'BB+' LT Rating, Outlook Stable RIDHI SIDHI: CARE Lowers Rating on INR7.62cr LT Loan to D RUCHI SOYA: Lenders to Meet Today to Discuss Bids S.R. PRECISION: CARE Lowers Rating on INR4.68cr Loan to D SAHARANPUR INSTITUTE: ICRA Reaffirms B- Rating on INR15cr Loan SARA TEXTILES: CRISIL Moves B+ Rating to Non-Cooperating Category SBL CONSTRUCTION: Ind-Ra Keeps 'D' Rating in Non-Cooperating Cat. SEAM INDUSTRIES: CARE Cuts Rating on INR38.37cr LT Loan to D SEANTO MINERALS: ICRA Maintains D Rating in Non-Cooperating Cat. SHIV SHAKTI: Ind-Ra Moves 'B' Issuer Rating to Non-Cooperating SHREE GANPATLAL: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' SHRI KK: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating SOUTH EAST UP POWER: Ind-Ra Affirms 'D' on INR37,132BB Loans SREE DHANNVIJAY: CRISIL Moves B+ Rating to Not Cooperating SRI KUMARSWAMY: CRISIL Reaffirms D Rating on INR44MM LT Loan SUBHASH POULTRY: CARE Assigns B+ Rating to INR6cr LT Loan SUDEEP EXIM: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating SUDHAMSU EXIM: ICRA Lowers Rating on INR15cr Loan to D TRUE WELL: ICRA Withdraws 'B' Rating on INR9cr Cash Loan VBS TEXTILES: CARE Reaffirms B+ Rating on INR44cr LT Loan YARLAGADDA EXPORTS: CRISIL Reaffirms B+ Rating on INR17MM Loan ZEPHYR FABRIC: CARE Lowers Rating on INR25cr LT Loan to D M A L A Y S I A PERISAI PETROLEUM: Third Quarter Net Loss Widens to MYR244.52MM N E W Z E A L A N D ORION HEALTH: Axes 177 Jobs; Reports NZ$40MM Annual Loss PLEASANT POINT: Inland Revenue Applies For Hotel's Liquidation - - - - - ================= A U S T R A L I A ================= EXCEDO CONTRACTING: Second Creditors' Meeting Set for June 5 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Excedo Contracting Pty Ltd has been set for June 5, 2018, at 10:00 a.m. at Level 9, 40 St Georges Terrace, in Perth, WA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 1, 2018, at 4:00 p.m. Rob Brauer and Rob Kirman of McGrathnicol were appointed as administrators of Excedo Contracting on Feb. 28, 2018. INGAN PTY: First Creditors' Meeting Set for June 6 -------------------------------------------------- A first meeting of the creditors in the proceedings of Ingan Pty Ltd will be held at the offices of Amos Insolvency, 25/ 185 Airds Road, in Leumeah, NSW, on June 6, 2018, at 11:00 a.m. Peter Andrew Amos of Amos Insolvency was appointed as administrator of Ingan Pty on May 25, 2018. MATCHBYTE CONSULTANTS: Directors Hope to Revive Firm Thru DOCA -------------------------------------------------------------- CRN Australia reports that the directors of failed Australian travel software vendor Matchbyte Consultants are hoping to revive the company after the loss of key customers pushed it over the edge. Matchbyte had been served with a winding-up notice by the Australian Taxation Office on April 13, after which the directors voluntarily called in administrators Deloitte's restructuring services team, with Robert Woods and Glen Kanevsky appointed voluntary administrators on April 26, CRN says. "The business has continued to trade normally, and there have been no employee impacts," CRN quotes a Deloitte spokesperson as saying. CRN notes that the software company blamed the decision on a downturn in orders from major client Scoot following its merger with Tigerair in 2017. Matchbyte owes AUD2.6 million to unsecured creditors, including nearly AUD1 million to the ATO and AUD433,000 to UK-based software development house JS Factory, CRN discloses. According to CRN, the company's directors, Dzulkiflee Taib and Ihtasham Waheed, have now proposed a deed of company arrangement to pull Matchbyte out of administration, repay creditors and continue trading. CRN says creditors had the opportunity to vote on the DOCA at a meeting held on May 28. Deloitte recommended creditors accept the deed, which would offer 7-8 cents in the dollar for unsecured creditors, as opposed to a liquidation, which would leave unsecured creditors with nothing, the report relates. Matchbyte Consultants developed a range of software for the airline industry, including content management system Joom Air, e- commerce engine White Knight, advanced behavior recognition algorithm Aegis Air, advanced passenger notification module Hermes Air and reporting solution Rev Air. MODCON CARPENTRY: Second Creditors' Meeting Set for June 6 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Modcon Carpentry Pty Ltd has been set for June 6, 2018, at 10:30 a.m. at the offices of Worrells Solvency & Forensic Accountants, Level 1, 160 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 June 5, 2018, at 4:00 p.m. Adam Francis Ward of Worrells Solvency was appointed as administrator of Modcon Carpentry on May 14, 2018. RETAIL FOOD: Appoints Richard Hinson as New CEO ----------------------------------------------- The Board of Retail Food Group Limited on May 29 announced the promotion of Richard Hinson to Group Chief Executive Officer, effective immediately. Mr. Hinson commenced with RFG as Chief Executive - Australia in January 2018 to lead implementation of the Company's strategic business review, to simplify the Group's operating model, and to improve the sustainability and performance of RFG's franchise network. In that role, Mr. Hinson has been responsible for the Group's domestic franchising network, working with franchisees to strengthen and improve their businesses. The senior executive team leading RFG is composed of: Richard Hinson, Group CEO; Darren Dench, Chief Executive - Di Bella Coffee; and Peter McGettigan, Chief Financial Officer. Managing Director Andre Nell will leave the Group on May 29, 2018. These management changes demonstrate the Board's commitment to closer integration between head office, support structures and RFG's franchise network. Richard Hinson and Darren Dench are focused on improving performance of RFG's core domestic franchising and global coffee businesses, and their leadership has made a significant positive impact on the business in challenging retail trading conditions. Since February 2018, the Group has delivered franchisees reductions in cost of goods, renewal and new store fees, and worked with franchisees to pilot innovative new store concepts. The senior executive team has been committed to working closely with franchisees on a range of performance improvement initiatives, including new product range and quality, supply chain improvements, a group customer loyalty program, and other promotional activities. Mr Hinson said, "Our core business is fundamentally sound and we are working hard to improve franchisee relationships and profitability. We are revitalising the network to focus on our customers first; improving performance, driving innovation and improving communication and transparency with our franchisees. This is a 12-18 month turnaround of the RFG business. "Trading conditions in food retailing continue to be tough. The actions we are taking in collaboration with franchisees are starting to see a positive response." RFG Chairman, Colin Archer said, "Richard is gaining the confidence of our franchisees and has restored some momentum to the business by delivering immediate benefits and focusing on longer term strategic plans for each Brand System. "Our core Brand Systems are in good hands under the leadership of Richard, Darren and Peter, and we are seeing early signs of improving performance," Mr. Archer said. "On behalf of the Board, I would like to thank Andre for his dedicated service to Retail Food Group in a range of senior executive roles since 2007, and wish him well for his future endeavors." Richard Hinson has almost 30 years' experience in the retail food sector and has held national executive positions at Wrigley Pacific and Metcash Supermarket and Convenience. He has extensive experience in supply chain, integrated business processes, sales and marketing, and customer service. Darren Dench joined RFG in early 2017 and moved into the new position of Global Head of Coffee in December 2017. Darren has previously held senior positions with Colgate, Mars, Ferrero and Lavazza. He has more than 25 years' sales, marketing and general management experience across more than 60 countries, and has a deep understanding of the key drivers for creating a successful international coffee business. As reported in the Troubled Company Reporter-Asia Pacific on March 6, 2018, news.com.au said Retail Food Group shares hit their lowest mark since 2008 on their return to trade following a suspension during which the owner of the Donut King and Gloria Jean's chains announced the closure of up to 200 stores. Shares in the embattled firm plummeted nearly 50 per cent to AUD1.03 in early trade on March 5 -- their lowest mark since December 2008 -- before rebounding slightly. Shares in the franchise owner, which also operates Brumby's Bakeries and Pizza Capers, were suspended on Feb. 28 for failing to release its first-half results on time, according to the news.com.au. When the accounts were released on March 2, RFG revealed a first- half loss of AUD87.8 million due to AUD138 million in writedowns and provisions. It also suspended its dividend and said it would shut up to 200 stores by mid-2019, news.com.au added. Retail Food Group Limited (ASX:RFG) -- http://rfg.com.au/-- together with its subsidiaries, owns, develops, and manages multi- brand retail food franchise in Australia. The company engages in the ownership of intellectual property; development and management of coffee roasting facilities; and the wholesale supply of coffee and allied products. It is also involved in the development and management of the procurement, warehousing, manufacturing, and distribution business of various brands. The company operates a network of approximately 2,500 outlets across 12 brand systems spanning 83 territories. ========= C H I N A ========= ANBANG INSURANCE: Says It Has No Plans to Sell Assets ----------------------------------------------------- The Financial Times reports that Anbang Insurance, the conglomerate that was taken over and bailed out by the Chinese government earlier this year, said in a statement that it has no plans to sell off its assets. The statement came after the FT reported that banks had been appointed to assist in unwinding the company's investments. "The review of Anbang's overseas assets is a complex and comprehensive exercise," the company said on its website, the FT relays. "We currently do not have any plans to sell off overseas assets, nor do we have a specific timetable for optimizing these assets." Anbang's founder and chairman Wu Xiaohui was detained last year and recently sentenced to 18 years in prison, the FT recalls. The FT reported on May 28 that Chinese regulators have appointed CICC and UBS as advisers to help develop a process to unwind Anbang's collection of global investments, which includes banks and insurance companies in places such as Belgium, the Netherlands and Korea, as well as the Waldorf Astoria hotel in New York. Before Mr. Wu's arrest, Anbang controlled 58 companies directly or indirectly with CNY2 trillion (US$318 billion) in assets, according to estimates from UBS, according to the FT. The assets have been divided into two groups, real estate holdings and its financial holdings, as regulators assess the best way to deal with the investments. The FT relates that Anbang said in the statement: "The Interim Management Working Group of Anbang Insurance Group is in the process of conducting a review of all of its assets; and working with third-party advisory firms is a necessary step in this process." In April, the company received a CNY61 billion (US$9.7 billion) bailout from an industry rescue fund as it searched for new investors in the company, the FT notes. The FT adds that the statement from Anbang noted that the "selection of new strategic shareholders for Anbang has commenced and is running smoothly. Currently, Anbang has sufficient cash flow to fulfill its commitments to all customers and ensure that the legitimate rights of policyholders are effectively protected." About Anbang Insurance Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers property insurance, life insurance, health insurance, asset management, insurance sales agency, and insurance brokerage services. The company provides car insurance, accident insurance, cargo transportation insurance, credit insurance, life-long insurance, and medical insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2018, The Strait Times related the Chinese government had seized control of Anbang Insurance, the troubled Chinese company that owns the Waldorf Astoria hotel in New York and other marquee properties around the world, and charged its former chairman with economic crimes. The Strait Times noted that the move is Beijing's biggest effort yet to rein in a new kind of Chinese company, in this case, one that spent billions of dollars around the world over the past three years buying up hotels and other high-profile properties. The rise of these companies illustrates China's growing economic might, but Chinese officials have grown increasingly concerned that they were piling up debt to make frivolous purchases. In a statement posted on its website on Feb. 23, the China Insurance Regulatory Commission said the government was taking over to ensure the "normal and stable operation" of the company. "Illegal operations at Anbang may have seriously endangered the company's solvency, prompting the government to take control," the statement read. The Strait Times noted the move also caps the downfall of Anbang leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng Xiaoping, China's paramount leader in the 1980s and a towering figure in Chinese politics, and was widely considered politically connected. CBAK ENERGY: Incurs US$2.56 Million Net Loss in First Quarter ------------------------------------------------------------- CBAK Energy Technology, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of US$2.56 million on US$3.31 million of net revenues for the three months ended March 31, 2018, compared to a net loss of US$2.06 million on US$3.71 million of net revenues for the three months ended March 31, 2017. As of March 31, 2018, CBAK Energy had US$148.80 million in total assets, US$148.95 million in total liabilities, and a total shareholders' deficit of US$152,826. Net cash provided by operating activities was US$2.4 million in the three months ended March 31, 2018, as compared with net cash used in operating activities of US$4.3 million in the same period in 2017. The net cash provided by operating activities was mainly attributable to a decrease of US$15.2 million for trade accounts and other receivables, partially offset by an increase in cash outflows for net loss of US$2.6 million in the three months ended March 31, 2018, an increase of US$1.4 million on inventories, settlement of trade accounts and bills payable of US$7.8 million, and US$1.8 million on settlement of trade payables to former subsidiaries. Net cash used in investing activities was US$4.5 million for the three months ended March 31, 2018, as compared to US$1.2 million in the same period of 2017. The net cash used in investing activities comprised the purchases of property, plant and equipment and construction in progress. Net cash provided by financing activities was US$2.6 million in the three months ended March 31, 2018, compared to US$5.4 million during the same period in 2017. The Company borrowed US$2.6 million from related parties in the three months ended March 31, 2018. Liquidity and Capital Resources The Company has financed its liquidity requirements from short- term bank loans, other short-term loans and bills payable under bank credit agreements, advances from its related and unrelated parties, investors and issuance of capital stock. CBAK Energy incurred a net loss for the three months ended March 31, 2018. As of March 31, 2018, the Company had cash and cash equivalents of US$1.3 million. The Company's total current assets were US$75.0 million and its total current liabilities were US$113.7 million, resulting in a net working capital deficiency of US$38.7 million. The Company said these factors raise substantial doubts about its ability to continue as a going concern. The Company has obtained US$5.5 million and US$9.6 million through equity financing in calendar years 2016 and 2017, respectively, and the Company also has obtained banking facilities from various local banks in China. As of March 31, 2018, the Company had unutilized committed banking facilities of US$6.2 million. "We are currently expanding our product lines and manufacturing capacity in our Dalian plant, which require more funding to finance the expansion," the Company stated in the Quarterly Report. "We may also require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. We plan to renew these loans upon maturity, if required, and plan to raise additional funds through bank borrowings and equity financing in the future to meet our daily cash demands, if required. However, there can be no assurance that we will be successful in obtaining this financing. If our existing cash and bank borrowing are insufficient to meet our requirements, we may seek to sell equity securities, debt securities or borrow from lending institutions. We can make no assurance that financing will be available in the amounts we need or on terms acceptable to us, if at all. The sale of equity securities, including convertible debt securities, would dilute the interests of our current shareholders. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer. "In the meanwhile, due to the growing environmental pollution problem, the Chinese government is currently providing vigorous support to the new energy facilities and vehicle. It is expected that we will be able to secure more potential orders from the new energy market, especially from the electric car market. We believe with that the booming future market demand in high power lithium ion products, we can continue as a going concern and return to profitability." A full-text copy of the Form 10-Q is available for free at: https://is.gd/suJhDr About CBAK Energy Dalian, China-based CBAK Energy Technology, Inc., formerly China BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the business of developing, manufacturing and selling new energy high power lithium batteries, which are mainly used in the following applications: electric vehicles; light electric vehicles; and electric tools, energy storage, uninterruptible power supply, and other high power applications. CBAK Energy reported a net loss of US$21.46 million in 2017 compared to a net loss of US$12.65 million for the year ended Sept. 30, 2016. The Company reported a net loss of US$2.19 million for the three months ended Dec. 31, 2016. As of Dec. 31, 2017, CBAK Energy had US$153.13 million in total assets, US$150.93 million in total liabilities and US$2.19 million in total shareholders' equity. Centurion ZD CPA Limited, in Hong Kong, China, the Company's auditor since 2016, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2017 stating that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Dec. 31, 2017. All these factors raise substantial doubt about its ability to continue as a going concern. CEFC CHINA: CITIC Unit Takes Board Chairmanship in CEFC Europe -------------------------------------------------------------- Reuters reports that a unit of China's state-owned CITIC Group has taken over the chairmanship position at CEFC Europe, a Czech-based part of the troubled Chinese conglomerate CEFC China Energy, CEFC Europe said on May 28. Reuters relates that the firm said Ren Xia of Rainbow Wisdom, a unit of CITIC, had been appointed to the board and elected as chairwoman. The move showed CITIC was going ahead with a plan to take at least partial control over the CEFC assets, Reuters says. Reuters notes that on May 25, CITIC paid around CZK12 billion ($542.57 million) in debt on behalf of the CEFC group to Czech banking and private equity group J&T. CEFC Europe had said earlier CITIC would take 49 percent interest in the Czech assets, the report adds. The board replacement means that a crisis management put in by creditors J&T was leaving the firm, Reuters notes. Bloomberg News, citing Xinhua News Agency's May 19 report, said J&T Private Investments has decided to take control of the management of the CEFC Europe because of the failure of the parent company to repay debt on time. CEFC Europe is a Czech-based European branch of the Chinese conglomerate CEFC China Energy. 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. CHINA COMMERCIAL: Posts US$386,000 Net Loss in First Quarter ------------------------------------------------------------ China Commercial Credit, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of US$385,898 on US$100,772 of total interest and fee income for the three months ended March 31, 2018, compared to a net loss of US$1.22 million on US$106,776 of total interest and fee income for the three months ended March 31, 2017. As of March 31, 2018, China Commercial had US$7.31 million in total assets, US$11.76 million in total liabilities, and a total shareholders' deficit of US$4.45 million. Net cash provided by investing activities for the three months ended March 31, 2018 was US$332,966 as compared to net cash provided by investing activities of US$674,977 for the three months ended March 31, 2017. The cash provided by investing activities for the three months ended March 31, 2018 was the net effect of disbursement of loans to third party customers of US$1,635,683 against collection of US$1,402,912 from third party loan customers and US$172,544 from third party financial guarantee services, respectively, and collection of short-term investments from a financial institution of US$393,193. During the three months ended March 31, 2018 and 2017, the Company did not incur any significant financing activities. The Company had an accumulated deficit of US$81,920,294 as of March 31, 2018. In addition, the Company had a negative net asset of US$4,450,241 as of March 31, 2018. As of March 31, 2018, the Company had cash of US$2,265,145 and total liabilities other than accrual for financial guarantee services of US$1,875,894. Caused by the limited funds, the management assessed that the Company was not able to keep the size of lending business within one year from the financial statement issuance date. The Company is actively seeking other strategic partners with experience in lending business. During the three months ended March 31, 2018, the Company incurred operating loss of US$385,898. Affected by the reduction of lending business and guarantee business and increased loss loans, management was of the opinion that recurring operating losses would continue, within one year from the financial statement issuance date. "The Company continues to use its best efforts to improve collection of loans receivable and interest receivable. Management engaged a PRC law firms to represent the Company in the legal proceedings against the borrowers and their counter guarantors," the Company stated in the Quarterly Report. During the three months ended March 31, 2018, the Company incurred negative operating cash flow of US$608,646. Affected by significant balance of charged-off interest receivable, the management assessed the Company would continue to have negative operating cash flow within one year from the financial statements issuance date. The Company said it has been actively seeking strategic investors with experience in lending business as well as financial investors. Management also invested in the Company during the year ended Dec. 31, 2017 and plans continue to invest in the Company during the year ended Dec. 31, 2018, if necessary. The Company plans to continue to seek financial as well as strategic investors for additional financing. On April 11, 2018, the Company closed a private placement to two individual investors in China for a gross proceeds of US$500,000 at a per share price of US$0.77. The net proceeds of the sale of the shares shall be used by the Company for working capital and general corporate purpose. Plan to Acquire New Business or Assets China Commercial stated: "Although we have continued to use our best efforts to improve our collection of loan receivable and interest receivable by engaging local law firms in China, it has been very difficult for us to collect from the borrowers. As such, the Company has been actively seeking strategic acquisition of business or assets to improve our liquidity. Since the termination of the Exchange Agreement with Sorghum in last December, we have evaluated a few potential acquisition targets. As of now, the Company plans to acquire certain second-hand luxury cars dealership business assets or other appropriate business deemed to be appropriate by the board of directors. As of the date of this Quarterly Report, the Company has not entered into any letter of intent or definitive agreement for such acquisition and there can be no assurance that we will be able to locate any target or negotiate definitive agreements." On April 28, 2018, the Company entered into certain securities purchase agreements with certain "non-U.S. Persons" as defined in Regulation S of the Securities Act of 1933, as amended pursuant to which the Company agreed to sell 1,336,314 shares of its common stock, par value $0.001 per share, at a per share purchase price of $0.78. The net proceeds to the Company from the Initial SPAs Offering will be approximately $1,042,324. The Initial SPAs are part of the subscription the Company received in a private placement offering of its Common Stock at a per share purchase price of $0.78 up to an aggregate gross proceeds of three million dollars ($3,000,000) to "non-U.S. Persons" as defined in Regulation S. The Offering will be on a rolling basis until June 30, 2018 unless the Company extends for an additional 30 days at its sole discretion. The net proceeds of the Offering will be used by the Company in connection with the Company's planned operation of certain used luxurious car leasing or other related business as approved by the board of directors of the Company. On May 10, 2018, the Company issued the 1,336,314 shares of Common Stock to the Purchasers since all the closing conditions of the Initial SPAs have been satisfied when the Company obtained required license to carry out the used luscious car leasing business. "Though management had plans to mitigate the conditions or events that raise substantial doubt, there is substantial doubt about the Company's ability to continue as a going concern within one year from the financial statements issuance date, as there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the plan will have a material adverse effect on the Company's business, results of operations and financial position, and may materially adversely affect its ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://is.gd/9G5hBx About China Commercial Credit Founded in 2008, China Commercial Credit -- http://www.chinacommercialcredit.com/-- is a financial services firm operating in China. Its mission is to fill the significant void in the market place by offering lending, financial guarantee and financial leasing products and services to a target market which has been significantly under-served by the traditional Chinese financial community. The Company's current operations consist of providing direct loans, loan guarantees and financial leasing services to small-to-medium sized businesses, farmers and individuals in the city of Wujiang, Jiangsu Province. China Commercial incurred a net loss of US$10.69 million for the year ended Dec. 31, 2017, compared to a net loss of US$2.58 million for the ended Dec. 31, 2016. As of Dec. 31, 2017, China Commercial had US$7.16 million in total assets, US$12.43 million in total liabilities and a total shareholders' deficit of US$5.27 million. The report from the Company's independent accounting firm Marcum Bernstein & Pinchuk LLP on the consolidated financial statements for the year ended Dec. 31, 2017, includes an explanatory paragraph stating that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. FUSHUN SPECIAL: Faces Risk of Delisting Over Restatements --------------------------------------------------------- Han Wei at Caixin reports that Fushun Special Steel Co. Ltd, the Shanghai-listed arm of embattled Dongbei Special Steel, warned investors it faces the risk of delisting if it misses a June 30 deadline for restating financial reports to correct falsified inventory data. Caixin relates that the company "is actively drafting" financial reports for 2017 and the first quarter of 2018. But "there is risk that the work can't be completed by the deadline and the company may be forced to delist" from the Shanghai Stock Exchange, the company said in a filing May 28, Caixin relays. Fushun Special Steel Co., Ltd. manufactures and markets a variety of steel products including bearing steel, gear steel, die steel, stainless steel, and alloy steel. The Company also provides processing and technology services. ========= I N D I A ========= ANAND MOTOR: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Anand Motor Agencies 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: -- INR198 mil. Fund-based working capital limits maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR30 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 25, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Anand Motor Agencies was incorporated in 1987 and is engaged in the trading of four-wheelers and holds a 3S authorized dealership of Maruti Suzuki India Limited. ANJANEYA JEWELLERY: CRISIL Reaffirms B Rating on INR20MM Loan ------------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the long term bank facilities of Anjaneya Jewellery (AI) at 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B/Stable (Reaffirmed) The rating reflects AJ's below average financial risk profile, because of high gearing, below average debt protection metrics and stretched liquidity, albeit supported by moderate net worth, geographical concentration in revenue profile and exposure to intense competition in the jewellery retail business. These weaknesses are partially offset by the extensive experience of its proprietor. Key Rating Drivers & Detailed Description Weaknesses * Below-average financial risk profile: Financial risk profile is below average because of high gearing and below average debt protection metrics. Gearing has remained high, above three times, over the past four years and, though expected to improve with repayment of term loan, should remain high over the medium term. Debt protection metrics is characterized by low interest coverage ratio (Around 1.5-1.6 times estimated for the Fiscal 2018) and net cash accruals total debt ratio. Moreover liquidity is stretched as reflected in insufficient accruals vis-a-vis maturing debt obligations. Net cash accruals are estimated to be around 2.8-2.9 crore against repayment obligation of around 5.8 crore for the Fiscal 2018. * Geographical concentration in revenue profile: During fiscal 2018, the firm is estimated to have registered revenue amounting to Rs.185 crore. The firm has a single showroom in Vijayawada bringing in 100% of the revenue, leading to high geographical concentration of revenue and also exposes the business risk profile to volatility in demand due to localized factors. * Exposure to intense competition: The domestic market for manufacturing and retailing of gold jewelry in India is characterized by a fragmented industry and intense competition among players, leading to pressure on profitability. The firm faces intense competition from regional, and branded players such as Joyalukkas India Ltd and Kalyan Jewellers, which have pan India presence and enjoy better economies of scale, apart from other regional players. Strength * Proprietor's extensive experience in the jewellery business: Mr. Venkat Rao has rich experience in gold retailing from over 2 decades. Over the years, he has developed strong insight into consumer buying patterns and identify trends in the jewelry designs. Looking at the strong demand for gold jewelry and in order expand in large scale the retail showroom in Labbipet was opened in 2005. Over the years they have significantly ramped up the operations of the showroom. Currently, AJ is one of the reputed gold showrooms in Vijayawada. The long and established presence also instils an element of trust among the consumers, which is an important factor influencing jewelry buying decision. Over the years the proprietor has developed strong relationships with major customers and suppliers. Outlook: Stable CRISIL believes that AJ will continue to benefit over the medium term from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in the profitability margin, or if there is better-than-expected improvement in its capital structure on the back of sizeable capital additions from the Properietor, improving the liquidity profile. The outlook may be revised to 'Negative' if there is a steep decline in the profitability margin, or significant deterioration in the capital structure, due to large debt-funded capex, a stretch in its working capital cycle or withdrawl from the capital account. Set up in 2005 as a sole proprietorship firm by Mr. Venkat Rao, AJ retails plain and diamond-studded gold jewelry at its showroom in Vijayawada, Andhra Pradesh. APLAB LIMITED: ICRA Retains D Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings said the rating for the INR73.00 crore bank facilities of APLAB 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- Cash Credit 12.80 [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Fund based- 13.20 [ICRA]D; ISSUER NOT COOPERATING; Working Capital Rating continues to remain in the Demand Loan 'Issuer Not Cooperating' category Fund based-Bill 11.00 [ICRA]D; ISSUER NOT COOPERATING; Discounting Rating continues to remain in the 'Issuer Not Cooperating' category Non-fund based- 14.00 [ICRA]D; ISSUER NOT COOPERATING; Letter of Rating continues to remain in the Credit 'Issuer Not Cooperating' category Non-fund based- 22.00 [ICRA]D; ISSUER NOT COOPERATING; Bank Guarantee 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 APLAB 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. APLAB Limited was incorporated in the year 1962 by Mr. P.S Deodhar and has started as a manufacturer for Test & Measurement instruments. Originally it was called as 'Applied Electronics Limited' which later on went on to be called as 'Applied Electronics Lab' before the name was finally changed to 'APLAB Limited'. The company's primary business activity involves manufacturing electrical/electronic equipment and devices. In the year 2000, Zee Entertainment Enterprises Limited acquired 26% stake in the company. The company has multiple product divisions namely Test and Measurement Instruments (T&M), Power Conversion & Controls (PCC), Power Supply Equipment (PE) or UPS systems, Banking and Retail Automation (BA) and Cable Fault Locating Instruments (CFS). Recently; the company has also diversified into Solar Power Equipment business. ARKA CARBON: Ind-Ra Lowers Long-Term Issuer Rating to 'D' --------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Arka Carbon Fuels Pvt. Ltd.'s (ACFPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER NOT COOPERATING).' The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Investors and other users are advised to take appropriate caution while using the rating. The instrument-wise rating actions are: -- INR100 mil. Fund-based working capital facilities (Long- /Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR1,000 bil. Non-fund-based working capital facilities (Long-/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR200 mil. Proposed bank facilities (Long-/Short-term) downgraded Provisional IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The ratings have been downgraded following a confirmation from ACFPL's lenders that the company has been categorized as a non- performing asset. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would lead to a positive rating action. COMPANY PROFILE ACFPL, part of the Swastik Group, is engaged in the business of coal importing and trading. ASIAN LAKTO: ICRA Reaffirms B+ Rating on INR13cr LT Loan -------------------------------------------------------- ICRA has reaffirmed its long-term rating on the INR13 crore fund- based facilities of Asian Lakto Industries Limited (ALIL) at [ICRA]B+. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Fund- based limits 13.00 [ICRA]B+ (Stable); reaffirmed Rationale: ICRA's rating reaffirmation takes into account year-on-year ~15% decline in topline in FY2018which is likely to adversely impact the profitability though overall the credit profile remains comparable to its rating category. The liquidity of the company remains slightly stretched as reflected in almost full utilisation of the working capital limits and availment of ad-hoc facilities. The rating continues to be constrained on account of ALIL's low profit margins on account of the intense competition in the industry, the seasonal nature of the business and the company's relatively modest scale of operations. However, the rating continues to draw comfort from the extensive experience of the promoters in the beverage industry, ALIL's long track record of operations, its wide distribution network and established relationships with corporate clients. Going forward, the ability of the company to improve its margins, scale up its operations and strengthen its coverage indicators will be the key rating sensitivities. Outlook: Stable ICRA believes that ALIL will continue to benefit due to its established dealership network and extensive experience of its promoters. The outlook may be revised to Positive if there is substantial growth in revenue and profitability, and better working-capital management, strengthening the financial risk profile. The outlook may be revised to Negative if cash accruals are lower than expected or a significant stretch in working- capital cycle further weakens liquidity. Key rating drivers: Credit strengths * Extensive experience of the promoters: The promoters of the company has more than four decades of experience in the beverage industry * Established relationship with customers: ALIL has a distribution network and established relationships with its customers. Credit challenges * Moderate scale of operations: The company's scale of operations is moderate with presence mainly in the northern states of Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir. * Fragmented industry and intense competition: ALIL operates in a fragmented industry comprising many small players in the unorganised segment, leading to intense competition and low margins. * Modest financial profile: ALIL's financial profile is characterised by low profitability and weak coverage indicators * Stretched liquidity: ALIL's liquidity is stretched, as reflected in almost full utilisation of working capital limits and availment of ad-hoc limits. Incorporated in 1994 by Mr. Radhe Shyam Poddar, Mr. Gopal Poddar and Mr. Neeraj Poddar, ALIL was originally engaged in the processing of flavoured milk. In 2007, the company diversified its business and started processing fruit juices. In 2010, ALIL exited the flavoured milk business owing to continued losses. ALIL has an established distribution network across the states of Haryana, Punjab and Himachal Pradesh and sells its fruit juices through various distributors and retail chains under the brand name, 'Mr. Fresh', in various flavours of mango, apple, lichi, guava, mixed fruit, etc. The company reported a net profit of INR1.5 crore on an operating income (OI) of INR82.9 crore in FY2017 as against a net profit of INR1.3 crore on an OI of INR76.2 crore in FY2016. As per provisional financials, the company has reported an OI of INR70.5 crore in FY2018. BAREILLY PLY: CRISIL Assigns B+ Rating to INR5.5MM Term Loan ------------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to bank facilities of Bareilly Ply Boards Private Limited (BPBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 5.5 CRISIL B+/Stable (Assigned) Cash Credit 2 CRISIL B+/Stable (Assigned) Letter of Credit 1 CRISIL A4 (Assigned) The ratings reflect the small scale of operations, exposure to project implementation risk and the large working capital requirement. These weaknesses are partially offset by extensive experience of the promoters, their funding support and moderate financial risk profile. Analytical Approach Unsecured loans of INR5.10 crore, extended by the promoters as on March 31, 2018, have been considered as neither debt nor equity. That's because the loans bear an interest rate that is lower than the market rate, and are expected to be retained in business in the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Small scale of operations: Scale of operations remains small, with revenue estimated at INR14.5 crore in fiscal 2018 (Rs 5.8 crore in fiscal 2017). * Large working capital requirement: Gross current assets are estimated at 296 days as on March 31, 2018, driven by large receivables and inventory. * Project implementation risk: The project, estimated at INR10 crore funded through bank lines of INR5.5 crore and rest through unsecured loans and capital from promoters, being undertaken to enhance the existing capacity is expected likely to be operational by third quarter of fiscal 2019, but remains vulnerable to risks related to completion and stabilisation. Strengths * Extensive experience of the promoters, and their funding support: The two decade-long experience of the promoters has helped the company establish its market position while need-based funding support extended by them should ensure comfortable liquidity. * Moderate financial risk profile: Networth and gearing are estimated at INR2.1 crore and 1.50 time, respectively, as on March 31, 2018. Debt protection metrics are robust, reflected in interest coverage and net cash accrual to total debt ratios of 5.5 times and 0.43 time, respectively, for fiscal 2018. The same is expected to deteriorate over medium term owing to incremental debt, however, will remain moderate. Outlook: Stable CRISIL believes BPBPL will continue to benefit from the extensive experience of its promoters, and their funding support. The outlook may be revised to 'Positive' if substantial growth in revenue, profitability, and cash accrual, along with prudent working capital management, strengthens the business and financial risk profiles. The outlook may be revised to 'Negative' in case of a dip in revenue leading to low cash accrual, or if a stretched working capital cycle, or any large capital expenditure, weakens financial risk profile and liquidity. BPBPL was set up by promoters, Mr Ravikant Nemani and Ms Ruchi Nemani in 1996. The company manufactures plywood and doors, and sells its products under the brands, Wudlay, Modiguard, Super Diana and Anubhuti, across six major states in India. BHOLA NATH: CRISIL Migrates B Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Bhola Nath Rakesh Kumar (BNRK; part of the Harshna group) for obtaining information through letters and emails dated March 28, 2018, April 19, 2018, May 4, 2018 and May 10, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.02 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 Bhola Nath Rakesh Kumar, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bhola Nath Rakesh Kumar is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Bhola Nath Rakesh Kumar to CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. The Harshna group was established in 1993 by Mr Rakesh Bhola Nath Kohli and Mr Naresh Bhola Nath Kohli, with the establishment of BNRK and BNNK. Both the firms are commission agents for trading in apples in Delhi's Azadpur mandi. In 1999, the group decided to establish its own cold storage facility in Sonipat (Haryana), for which it set up HICS in the same year. HICS currently has a multi- product cold-storage facility, with capacity of 11,500 tonne, along with ripening chambers. In 2004, the group set up HF, which supplies fruits to retail stores. BHUVAN WHEELS: CRISIL Migrates B- Rating to Not Cooperating ----------------------------------------------------------- CRISIL has been consistently following up with Bhuvan Wheels Private Limited (BWPL) for obtaining information through letters and emails dated April 20, 2018, May 08, 2018 and May 14, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) 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 Bhuvan Wheels Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bhuvan Wheels Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Bhuvan Wheels Private Limited to CRISIL B-/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. BWPL was incorporated in 2013, promoted by Mr Subhash Zambad and his family. It is an authorised dealer of Hyundai passenger cars in Aurangabad. The company currently operates one showroom and a workshop each, in Aurangabad and Jalna. BINANI CEMENT: Lenders Vote in Favor of Ultratech's Offer --------------------------------------------------------- The Times of India reports that Binani Cement's committee of creditors (CoC) on May 28 accepted the resolution bid by UltraTech with an overwhelming majority (99% voting) after an almost six- hour meeting. Sources close to the development said the CoC would now submit UltraTech's plan to the National Company Law Tribunal (NCLT) for approval, TOI relates. According to the report, a senior banker, who is among the lenders, said the latest decision of the CoC is subject to court's approval. He said that although UltraTech's bid (INR7,600 crore plus working capital loans) was higher than that of Dalmia's offer (INR6,590 crore), lenders would get their full dues in both cases. Bankers are not considering this deal as money in the bank yet because of the pending Supreme Court decision, TOI notes. TOI says the lenders argued that the UltraTech offer will lead to no haircut for both secured as well as unsecured creditors. The NCLT had directed the lenders to consider the revised UltraTech bid and also give a chance to Dalmia Bharat group to match it. If the Dalmia group matches the bid, there will be a proposal for an open auction between the two bidders by the NCLT. However, the Supreme Court fixed a hearing on the Binani Cement insolvency resolution on June 4, following an appeal by Dalmia group's Rajputana Properties, the report says. The lead lenders of Binani Cement include Bank of Baroda, Edelweiss, Canara Bank, Bank of India, IFCI, Central Bank of India and IDBI, along with others. According to TOI, the National Company Law Appellate Tribunal (NCLAT) last week had refused to stay the CoC's deadline of May 23, 2018, for Dalmia group's cement company to match UltraTech's revised offer for Binani Cement. This paved the way for the CoC to conduct the meeting according to a direction of the NCLT's Kolkata bench. TOI relates that the revised bid of UltraTech was of INR7,965 crore, while Dalmia's bid was INR6,590 crore. The Dalmia group refused to match the UltraTech bid last week, saying that this is in violation of the Insolvency and Bankruptcy Code (IBC). Earlier, the Supreme Court had rejected Dalmia's plea challenging the NCLT order, directing the CoC to consider the revised offer of UltraTech for Binani Cement and had also directed the NCLAT to hear the company's plea without adjournment from May 22, 2018, TOI relates. The resolution professional had cancelled the CoC meeting scheduled on May 10 in view of objections raised by Rajputana Properties, related to eligibility of UltraTech Cement under section 29A of the IBC, 2016, to be a resolution applicant for Binani Cement. About Binani Cement Binani Cement is a subsidiary of Binani Industries, a conglomerate with manufacturing and R&D operations. It has a manufacturing capacity of 11.25 million tonnes (mt) per annum with integrated plants in India and China, and grinding units in Dubai. On July 25, 207, the Kolkota bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against Binani Cement. Bank of Baroda (BoB) had referred Binani to the bankruptcy court after it failed to repay a sum of INR97 crore. BoB has appointed Vijaykumar V Iyer of Deloitte India as the interim resolution professional (IRP) to oversee the insolvency process. The company owes around INR6,500 crore to its lenders, according to LiveMint. BRIGHTWAY CONTRACTORS: CRISIL Reaffirms B Rating on INR4MM Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' rating on the long-term facilities of Brightway Contractors and Developers (BCD). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5.5 CRISIL A4 (Reaffirmed) Cash Credit 4.0 CRISIL B/Stable (Reaffirmed) The ratings continue to reflect BCD's modest scale and working capital intensive operations, geographical concentration in revenue and average financial risk profile. These weaknesses are partially offset by the extensive experience of its partners. Analytical Approach Unsecured loans of INR60 lakh as on March 31, 2017 from the partners, have been treated as debt for analytical purpose. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Revenue declined to an estimated INR9 crore in fiscal 2018 from INR17.17 crore in fiscal 2017 on account of execution of fewer orders. With projects worth INR14 crore to be executed by fiscal 2019, revenue visibility is moderate. * Working capital intensive operations: Gross current assets were at 149 days as on March 31, 2017 driven high inventory days of 65 days, which is primarily work-in-progress. The same is partially offset by credit received, creditor days were at 96 days. * Financial risk profile: Networth was modest at INR2.59 crore as on March 31, 2018 due to moderate accretion to reserve and profitability. Total outside liabilities to adjusted networth ratio, moderately high at 2.93 times, is expected to improve over the medium term with no major debt funded capital expenditure plan and equity infusion during fiscal 2018. * Geographical concentration: Operations are concentrated in Batala, Punjab, rendering the firm dependent on local tenders and vulnerable to changes in state government policies. Strength * Extensive experience of the partners: The promoters' experience of two decades in the construction industry has helped BCD bag orders. Before starting construction activities in BCD in 2007, they manufactured bricks and other allied products that were supplied to government departments. Outlook: Stable CRISIL believes BCD will continue to benefit from the extensive experience of its partners. Its financial risk profile, however, may remain average because of small networth and large debt. The outlook may be revised to 'Positive' if capital infusion improves revenue and capital structure, and profitability is stable. The outlook may be revised to 'Negative' if stretch in working capital cycle or any large, debt-funded capital expenditure; or capital withdrawal weakens financial risk profile. Set up in 2007, BCD is a partnership firm of Mr Ankur Sarin, Mr Sanjeev Kumar, and Mr Kawaljit Singh. Mr Sarin exited the firm in fiscal 2009. The firm constructs buildings, roads, and bridges for government departments, and undertakes stone setting and stone crushing. BSL ENGINEERING: CRISIL Reaffirms B Rating on INR1MM Cash Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of BSL Engineering Services Limited (BESL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reaffirmed) Cash Credit 1 CRISIL B/Stable (Reaffirmed) Letter of Credit 1 CRISIL A4 (Reaffirmed) The ratings continue to reflect BESL's modest scale and working capital intensive operations and average financial risk profile. These weaknesses are partially offset by the extensive experience of its promoters and their established relationship with customers. Analytical Approach Unsecured loans of INR4.59 crore as on March 31, 2017 from promoters have been treated as debt for analytical purpose. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: With estimated operating income of INR20.5 crore as on March 31, 2018, scale of operations is modest. Outstanding orders of INR15 crore to be executed over the next 6 months offer moderate revenue visibility. * Working capital intensive operations: Operations are expected to remain working capital intensive over the medium term-gross currents assets were at 205 days as on March 31, 2017 driven by high debtor days of 128 days on account of retention money held by clients and late payments from the government authorities such as national Thermal Power Corporation (NTPC) and Bharat heavy Electricals Ltd. * Financial risk profile: Networth was modest at INR3.51 crore as on March 31, 2017 due to moderate accretion to reserve and profitability. Total outside liabilities to adjusted networth was high at 4.48 times. However the same is expected to improve over the medium term with no major debt funded capex plan and infusion of equity. Strength * Extensive experience of the promoters and established relations with customers: The promoters have been in the industry for about three decades through other group companies. The extensive promoter experience has resulted in repetitive orders from key customers such as National Thermal Power Corporation and Power Machine India Limited. Outlook: Stable CRISIL believes BEPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if working capital management is prudent and increase in sales and profitability lead to higher cash accrual or if fund infusion is substantial. The outlook may be revised to 'Negative' if stretch in working capital cycle or delayed payment by debtors weakens financial risk profile. Incorporated in 2009, BEPL is promoted by Mr Hansraj Shiv and is now managed by his son, Mr Neerav Hans. It specialises in engineering, procurement, and construction services and fabrication of steel structures, high-pressure pipes, low pressure pipes, and supply of power equipment. The company has well laid out workshops in India at Roorkee and Haridwar in Uttarakhand, and Nasik in Maharashtra, and overseas (UAE and Ukraine). D C METALS: ICRA Maintains D Rating in Not Cooperating Category --------------------------------------------------------------- ICRA Ratings said the rating for the INR30.00 crore bank facilities of D C Metals 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- 30.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit 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 D C Metals, 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. Established in 1984, M/s. D C Metals is a partnership firm engaged in the trading of aluminium products namely ingots, wire rods, cast strips, cold rolled/hot rolled products etc. The firm is promoted by Mr. Kesarimal Bhansali, who has an industry experience of over 40 years. The customer base of the firm mainly comprises end users making value added products such as automobile parts, aluminium conductors, utensils, sheets etc. DURGA KRISHNA: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Durga Krishna Store Private Limited's (DKSPL) 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: -- INR30 mil. Proposed fund-based limit maintained in non- cooperating category with Provisional IND BB+ (ISSUER NOT COOPERATING) rating; -- INR60 mil. Proposed non-fund-based limit maintained in non- cooperating category with Provisional IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR75 mil. Non-fund-based limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 2, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE DKSPL is an area Class 1 (A) registered contractor company incorporated under the Indian Companies Act, 1956. Its head office is located in Cachar, Assam. EAST COAST DISTRIBUTORS: CRISIL Ups INR18MM Loan Rating to B+ ------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of East Coast Distributors Private Limited (ECDPL) to 'CRISIL B+/Stable' from 'CRISIL B-/Stable' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 18 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Proposed Long Term 4 CRISIL B+/Stable (Upgraded from Bank Loan Facility 'CRISIL B-/Stable') The upgrade reflects improvement in ECDPL's liquidity and business risk profile, aided by healthy revenue and profitability. Profitability improved to 9.3% in fiscal 2018 from 2.4% in fiscal 2017, driven by better fixed-cost absorption and measures taken to improve operating efficiency. Revenue, which improved by 43% in fiscal 2018, to INR58.5 crore is expected to further increase by 20-25% in fiscal 2019. The rating also continues to reflect below-average financial risk profile and large working capital requirement. These weaknesses are partially offset by the experience of the promoters and their funding support. Analytical Approach Out of the total unsecured loans (outstanding at INR27.64 crore as on March 31, 2018) extended to ECDPL by the promoters, INR15 crore has been treated as neither debt nor equity. That's because these are expected to remain in the business over the medium term; the remaining has been treated as debt. Key Rating Drivers & Detailed Description Weaknesses * Below-average financial risk profile: Networth was modest at INR9.77 crore as on March 31, 2018, with high total outside liabilities to adjusted networth ratio of 4.09 times. However, interest coverage ratio was moderate at 2.59 times in fiscal 2018. * Large working capital requirement: Gross current assets were sizeable at 244 days as on March 31, 2018, led by receivables and inventory of 99 days and 150 days, respectively. Strengths * Experience of promoters and their funding support: Benefits from the promoters' experience of a decade, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should continue to support the business. The promoters are also expected to continue extending timely, need- based unsecured loans to aid financial flexibility. Outlook: Stable CRISIL believes ECDPL will continue to benefit from its promoters' extensive industry experience and funding support. The outlook may be revised to 'Positive' in case of substantial and sustained increase in the company's profitability and revenue, leading to large cash accrual. The outlook may be revised to 'Negative' if the company takes longer than expected to improve its profitability, or if its financial risk profile deteriorates because of a stretch in its working capital cycle or decline in funding support from promoters. ECDPL was incorporated in 1999 at by Mr Shyam Sunder Agarwal and his brother, Mr Suresh Kumar Agarwal. The Mumbai- based company trades in houseware and tableware, such as gift articles, glass and crystal ware, and crockery, under the brand, Roxx. The company is a part of the RB Agarwala group, which has interests in the paper, yarn, castings, real estate, and houseware industries. ECDPL is managed by the promoters and Mr Shyam Sunder Agarwal's son, Mr Abhinav Agarwal. FORTIS HEALTHCARE: ICRA Cuts Rating on INR500cr Loan to D --------------------------------------------------------- ICRA Ratings has downgraded the long-term rating for INR490 crore non-convertible debenture programme of Fortis Healthcare Holdings Private Limited (FHHPL) from [ICRA]B+ with a negative outlook to [ICRA]D. Further, the short-term rating for INR500 crore commercial paper/short-term debt programme of FHHPL has been downgraded from [ICRA]A4 to [ICRA]D. Ratings continue to be in ISSUER NOT COOPERATING category and have been removed from 'under review' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible 490.00 [ICRA]D ISSUER NOT COOPERATING; Debentures Rating downgraded from [ICRA]B+ (Negative); rating continues to remain in 'Issuer Not Cooperating' category and is removed from 'under review' category Commercial Paper/ 500.00 [ICRA]D ISSUER NOT COOPERATING; Short-Term Debt Rating downgraded from [ICRA]A4; rating continues to remain in 'Issuer Not Cooperating' category and is removed from 'under review' category Rationale The rating action follows delays in making coupon payment on NCDs, as disclosed in the cure notice issued by the debenture trustee (DT) to FHHPL. The ratings were earlier placed under review due to non-confirmation of the payment on NCDs and with the receipt of this letter from DT, the ratings are removed from 'under review' category. The ratings continue to be constrained by significant slippages in deleveraging process, high exposure of promoter holding companies to refinancing risk and significant dependence on monetisation of assets due to the absence of meaningful income from its subsidiaries/investments. Going forward, curing of the delays, movement in overall indebtedness of holding entities of the group and the performance of residual investments (if any) will be the key rating sensitivities. Credit strengths Court's permission to sell the encumbered assets enabled deleveraging: The Honourable Supreme Court of India has allowed lenders to sell the assets that were encumbered before its order in August 2017, allowing the lenders to recover their dues and reduce the debt of promoter group companies. Credit weaknesses Delay in debt servicing: As per the cure notice received from the DT, the company has failed to make payments on NCDs. The payment was due on May 13, 2018 and the cure notice has been issued by DT on May 21, 2018. Court order directing payment of damages to Daiichi to substantially impair credit risk profile - Honourable High Court of Delhi has upheld the arbitration reward of Singapore tribunal directing the promoter group to pay INR3500 damages to Daiichi. The enforcement of the court order will significantly strain group's credit risk profile. Exposure to refinancing risk due to negligible income from subsidiaries/investments: The promoter companies have earned negligible dividend income earned from subsidiaries over the last five years and in absence of any stable revenue source, the promoter group is dependent on refinancing. Majority of the assets are already encumbered: Majority of the assets of the group are already encumbered, restricting the financial flexibility. Fortis Healthcare Holdings Private Limited (FHHPL) is a holding/investment company, controlled by promoters of Religare Enterprises and Fortis Healthcare Limited, Mr Malvinder Mohan Singh and Mr. Shivinder Mohan Singh. FHHPL holds ~0.77% of total shares in Fortis Healthcare Limited in March 2018 (down from ~68% in December 2016). FHHPL, is in turn held by RHC Holding Private Limited (RHC) and Oscar Investments Limited (Oscar), both of which are promoter holding companies. GOEL FOOD: CRISIL Migrates B+ Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratinsg has been consistently following up with Goel Food Product (GFP) for obtaining information through letters and emails dated April 24, 2018, May 10, 2018 and May 15, 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) Proposed Long Term Bank Loan Facility 1 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 4 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 Goel Food Product, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Goel Food Product 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 Goel Food Product to CRISIL B+/Stable Issuer not cooperating'. GFP was set up in 2014 as a partnership firm by Mr. Tarsem Kumar Goel, Ms. Anita Rani, Ms. Mamta Rani, and Ms. Neelam Rani. The firm is engaged in milling and sorting of basmati rice. GFP is based in Kaithal (Haryana), and its plant has a milling capacity of 3 tonnes per hour. GOKUL STEELS: Ind-Ra Hikes Long-Term Issuer Rating to 'BB-' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Gokul Steels Private Limited's (GSPL) Long-Term Issuer Rating to 'IND BB-' from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR65 mil. (increased from INR42.4 mil.) Fund-based working capital limits upgraded with IND BB-/Stable rating; and -- INR39.2 mil.(reduced from INR64.5 mil.) Term loan due on July 2020 upgraded with IND BB-/Stable rating. KEY RATING DRIVERS The upgrade reflects GSPL's improved liquidity. The company's use of the working capital limits reduced to 78% during the 12 months ended April 2018 from 97%, attributed to better working capital management. The upgrade also reflects the company's improved credit metrics and scale of operations in FY17. Interest coverage increased to 2.2x in FY17 (FY16: 2x) and net financial leverage reduced to 3.4x (3.9x) due to a decline in interest costs on account of a decline in the year end debt. Revenue improved to INR418 million in FY17 (FY16: INR377.05 million) and further to INR561 million according to FY18 provisional financials due to a larger number of orders executed. However, the scale of operations remains small and credit metrics modest. The latter is affected by the company's thin and volatile operating margins which have fluctuated in the range of 5%-7% since FY15 due to volatile raw material costs. Also, the company has a short operating record, as it started its operations in May 2014. RATING SENSITIVITIES Negative: Any sustained deterioration in scale of operations will be negative for the ratings. Positive: A sustained improvement in the scale of operations along with the credit metrics will be positive for the ratings. COMPANY PROFILE Founded in May 2014 by Mr. Vivek Kasera, GSPL manufactures angles, flats, bars, rounds and other structural steel items. The company has a steel structural rolling mill with a production capacity of 28,000 metric tons per annum in Fatwa, Bihar. GOLDSTAR METAL: ICRA Retains D Rating in Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings said the rating for the INR10.00 crore bank facilities of Goldstar Metal Solutions 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- (10.00) [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating continues to remain in the 'Issuer Not Cooperating' category Fund based- 10.00 [ICRA]D; ISSUER NOT COOPERATING; Packing Credit 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 Goldstar Metal Solutions 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 2005, Goldstar Metal Solutions Pvt. Ltd. is promoted by Mr. Prem Prakash Saraogi. The firm was earlier involved in trading of iron ore in domestic and international markets from three mines located in Satheli village in Sinddhudurg district of Maharashtra. However, in December 2013, Samruddha Resources Limited (SRL) acquired the iron ore trading business of GMSPL. SRL paid sales consideration of INR5.01 crore via slump sale and acquired excess of liabilities over assets to the tune of INR29.73 crore. Currently, the company is involved in trading of TMT bars. HARI KRIPA: ICRA Maintains B Rating in Not Cooperating Category --------------------------------------------------------------- ICRA Ratings said the ratings for the INR34 crore bank facilities of Hari Kripa Business Ventures Private Limited continues 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 ---------- ----------- ------- Long Term-Fund 11.00 [ICRA]B(Stable) ISSUER NOT Based/TL COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long Term-Fund 20.00 [ICRA]B(Stable) ISSUER NOT Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term/Long 3.00 [ICRA]B(Stable)/[ICRA]A4 ISSUER Term-Non-Fund NOT COOPERATING; Rating Based 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 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. Hari Kripa Business Venture Private Limited (HKBV) was established in 2008 at Kaladera in Jaipur. The company started its commercial production on September 1, 2012. The company is promoted by Mr. Mahendra Kumar Agarwal, Mr. Raghuveer Agarwal along with the other members of the family. HKBV manufactures Mild Steel (MS) ingots/billets, pipes, and flats. In FY2013, the company forward integrated and commenced the manufacturing of MS flats and other rolled products, wherein the key raw materials (billets and ingots) used were captively produced. ISHANIKA HOTELS: CRISIL Moves B Rating to Not Cooperating --------------------------------------------------------- CRISIL Ratings has been consistently following up with Ishanika Hotels Private Limited (IHPL) for obtaining information through letters and emails dated March 29, 2018, April 19, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 12 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 Ishanika 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 Ishanika Hotels Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Ishanika Hotels Private Limited to CRISIL B/Stable Issuer not cooperating'. Incorporated in 2015, IHPL is promoted by Mr Arun Singh and his wife Ms Rolli Singh. The company is setting up a hotel project in the area of around 12000 sq. ft. comprising seven floors. The property comprises 58 rooms and is situated at Gomti Nagar, Vibhuti Khand Lucknow, Uttar Pradesh. The commercial operations are expected to start from April 2017. IVANTA CERAMICS: Ind-Ra Assigns 'BB-' LT Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Ivanta Ceramics LLP (Ivanta) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as: -- INR121 mil. Long-term loan due on September 2024 assigned with IND BB-/Stable rating; -- INR53 mil. Fund-based limits assigned with IND BB-/Stable rating; and -- INR17 mil. Non-fund-based limits assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect the limited operational track record of Ivanta, given it commenced commercial production from April 2018. This indicates that Ivanta's operations are yet to be stabilized. Ind-Ra expects Ivanta's credit metrics to be modest in the medium term owing to a high debt, despite a likely healthy EBITDA margin (inherent in the tile manufacturing business) to be registered by Ivanta during the period. The ratings, however, are supported by tangible support from Affil Vitrified Private Limited ('IND BB+'/Stable), which has provided a corporate guarantee for Ivanta's external debt. The ratings are also supported by the promoters' decade-long experience in the tile manufacturing business. RATING SENSITIVITIES Negative: Inability to stabilize operations or any withdrawal of the corporate guarantee by Affil Vitrified will be negative for the ratings. Positive: Successful stabilization of operations, along with a healthy EBITDA margin, will be positive for the ratings. COMPANY PROFILE Ivanta is engaged in the ceramic wall tile business manufacturing business. It has an installed capacity of about 12,000 square meters per day. There was marginal rise in project cost to INR172.9 million from INR172.8 million. The increased amount was funded through share capital. JAGSUN AGRO: CRISIL Migrates B Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Jagsun Agro Commodities Private Limited (JACPL) for obtaining information through letters and emails dated, April 24, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Bill 9 CRISIL B/Stable (Issuer Not Discounting 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 Jagsun Agro Commodities Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Jagsun Agro Commodities Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Jagsun Agro Commodities Private Limited to CRISIL B/Stable Issuer not cooperating'. JACPL was incorporated on September 1, 2016, promoted by Mr Gaurav Gupta. It is based in Karnal, Haryana, and trades in rice. The company started operations in December 2016. JAI BHARAT: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Jai Bharat Industries' 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: -- INR40 mil. Fund-based working capital limit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR42.5 mil. Term loans maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 12, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Jai Bharat Industries is a partnership entity engaged in rice and flour milling business. The firm's plant is located in Hardoi, Uttar Pradesh. JALNA SIDDHIVINAYAK: Ind-Ra Assigns BB- LT Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Jalna Siddhivinayak Alloys Private Limited (JSAPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR595 mil. Fund-based limits assigned with IND BB- /Stable/IND A4+ rating; -- INR60 mil. Non-fund based limits assigned with IND A4+ rating; -- INR85 mil. Proposed fund-based limits* assigned with Provisional IND BB-/Stable/Provisional IND A4+ rating; and -- INR200 mil. Proposed term loan* assigned with Provisional IND BB-/Stable rating. * The ratings are provisional and shall be confirmed upon the sanction and execution of loan documents for the above facilities by JSAPL to the satisfaction of Ind-Ra. Ind-Ra has taken a consolidated view of JSAPL and Roopam Steel Rolling Mills (RSRM), which have been collectively referred to as the Jalna group, as RSRM merged into JSAPL on March 28, 2018. KEY RATING DRIVERS The ratings reflect the Jalna group's stressed liquidity, indicated by a working capital limit utilization of over 100.0% over the 12 months ended April 2018. The banker has allowed the group over-utilization time to time to fund its excess working capital requirements owing to the working capital-intensive nature of operations. The group had an elongated working capital cycle of 162 days in FY18 (FY17: 214 days). The improvement in the cycle was due to a decline in the debtor and inventory days. The ratings reflect the Jalna group's weak credit metrics. In FY18 (provisional financials), the Jalna group's interest coverage (operating EBITDA/gross interest expense) was 1.3x (FY17: 0.86x) and net leverage (net adjusted debt/operating EBITDAR) was 6.5x (11.0x). In FY19, the group will undertake a capex (the majority of which will be funded by debt) on the modernization and expansion of its existing facility. Ind-Ra expects the credit metrics to remain at similar levels in view of an increase in debt. The ratings further reflect the group's modest EBITDA margin, which rose to 6.1% in FY18 from 4.9% in FY17, driven by a rise in sales realization per ton and a decline in other expenses. The ratings, however, are supported by the Jalna group's medium scale of operations. The group's revenue increased to INR2,280 million in FY18 from INR1,843 million in FY17 due to higher sales of MS billets. Given JSAPL and RSRM merged in March 2018 and the capex plans for FY19, Ind-Ra expects the group's revenue to grow further in the near term. The ratings are also supported by the promoters' over two decades of experience in the steel sector that has led to regular orders from long-standing customers. RATING SENSITIVITIES Negative: Any decline in the revenue and/or profitability leading to any deterioration in the overall credit metrics and further stress in the liquidity will lead to a negative rating action. Positive: Any further rise in the revenue and profitability, along with a substantial improvement in the credit metrics and the liquidity, will be positive for the ratings. COMPANY PROFILE JSAPL is engaged in the manufacturing of billets, while RSRM manufactures thermo-mechanically treated bars. Post the merger, 75.0%-80.0% billets will continue to be used for captive consumption, while the rest will be sold to domestic traders. JEET HOME: CRISIL Moves D Rating to Non-Cooperating Category ------------------------------------------------------------ CRISIL has been consistently following up with Jeet Home Solutions Private Limited (JHSPL) for obtaining information through letters and emails dated April 24, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 9 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 Jeet Home Solutions Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Jeet Home Solutions Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Jeet Home Solutions Private Limited to CRISIL D Issuer not cooperating'. JHSPL, incorporated in 2010, develops real estate in Varanasi, Uttar Pradesh. The company is promoted by Mr Jitendra Kumar Sinha and Mr Lallan Prasad Sinha. JHSPL currently has one residential project, Jeet Rivera, under construction. KAMAL KRISHNA: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Kamal Krishna Builders Private Limited's (KKBPL) Long-Term Issuer Rating to 'IND D' from 'IND BB' while simultaneously migrating it to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR62.5 mil. Term loan (long-term) due on March 2021 downgraded and migrated to Non-Cooperating Category 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 KKBPL due to a tight liquidity position. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would be positive for the ratings. COMPANY PROFILE Incorporated in 1995, KKBPL is a Bhopal-based construction company. MAA KALI: ICRA Maintains B+ Rating in Not Cooperating Category -------------------------------------------------------------- ICRA Ratings said the ratings for the INR45.00 crore bank facilities of Maa Kali Alloys Udyog 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- 21.50 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based- 23.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non Fund Based- 0.50 [ICRA]A4 ISSUER NOT COOPERATING; Bank Guarantee Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in 2002, Maa Kali Alloys Udyog Private Limited (MKAUPL) manufactures sponge iron and MS billets with an annual installed capacity of 60,000 MT and 56,000 MT, respectively. The manufacturing facility, located in Raigarh, Chhattisgarh, also consists of a captive power plant of 8 MW. The sponge iron plant was started in 2005, whereas the billet and power units were started in December 2013. MAGADH PRECISION: ICRA Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings has moved the ratings for the bank facilities of Magadh Precision Equipments Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash 50.00 [ICRA]D ISSUER NOT COOPERATING; Credit Rating moved to the 'Issuer Not Cooperating' category Short Term-Non 25.00 [ICRA]D ISSUER NOT COOPERATING; 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/dated/ 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. Magadh Precision Equipment Limited (MPEL) was incorporated in 1986 and is engaged in manufacturing and export of capital equipments to the metal processing industry. The product portfolio of the company includes: Galvanizing lines, Hot and Cold Rolling Mills and Slitting lines. The products find application in the steel industry. The manufacturing unit of the company is located in Dewas, Madhya Pradesh spread over 12,000 square meters area. MAISON DE COUTURE: CARE Lowers Rating on INR28.82cr Loan to D ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Maison De Couture Fabrics Pvt Ltd (MDC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 11.70 CARE D Revised from Facilities CARE BBB-; Stable (Term Loan) Long-term Bank 28.82 CARE D Revised from Facilities CARE BBB-; Stable (Cash Credit) Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of MDC is on account of delays in servicing of debt obligations due to stress in the liquidity position of the company. Detailed description of the key rating drivers Key Rating Weaknesses On-going delays in servicing of debt obligations: As per interaction with the lenders and management of the group, there are on-going delays in servicing of interest payment and overdrawals in fund based limits for more than 30 days due to stretched liquidity position of the company. The company operates in a working capital intensive nature of business and stretched recoveries from customers further tightened the liquidity position of the company. Analytical approach: Combined A combined view is considered for 'Oneworld Group' group which includes Oneworld Creation Pvt Ltd (OCPL), Oneworld Industries Pvt Ltd (OIPL), Oneworld Retail Pvt Ltd (ORPL), Oneworld Sourcing (OS), Tissori India Fabrics Pvt Ltd (TIFPL), Maison De Couture Pvt Ltd (MDC), Zephyr Fabric Trading LLP (ZFT), Worsted Overseas Trading LLP (WOT), WorldStar Fabric LLP (WF), Ultimo Fabrics Pvt Ltd (UFPL) and Oneworld Design Studios Pvt Ltd (ODS). The combined view for the group is on account of strong operational and managerial linkages being in the same line of business and common promoters. Established in the year 1995 by Mr Urvil Jani and Mr Manoj Khushalani, the group began its business under a partnership firm "Roshvil Enterprise". The firm was engaged in the business of trading of fabrics in bulk quantities for men's wear. Subsequently, the product profile was diversified by the firm to cater to women's wear and ready-made garments. Owing to increase in the scale of operation over the years, the group was re-christened as Oneworld group and the business carried under the partnership firm was transferred to a private limited companies incorporated in the year 2012 viz Oneworld Industries Private Limited. Consequently, many other companies were incorporated to carry on trading of various textile products. Currently, the group is engaged in the business of trading in fabric materials and readymade garments (manufactured on job work basis). MDC was incorporated on August 10, 2015 to establish and undertake business of trading of shirting fabrics in India under the brand name "Tissori" on Stock and sales basis. MPOWER INFRATECH: Ind-Ra Maintains BB+ Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained MPower Infratech (India) Private Limited's (MIPL) 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: -- INR370 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR150 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 May 4, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2004, MIPL manufactures and installs telecom and transmission towers, and performs structural works for solar panels. NURNEHER AGRO: CARE Assigns B+ Rating to INR6.83cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Nurneher Agro Products Pvt. Ltd. (NAPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.83 CARE B+; Stable Assigned Short-term Bank Facilities 0.19 CARE A4; Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of NAPPL are constrained by its nascent stage of operations, regulated nature of industry, seasonality of business with susceptibility to vagaries of nature and competition from other local players. However, the aforesaid constraints are partially offset by experienced promoters and its close proximity to potatoes growing region. Going forward, the ability of the company to achieve revenue and profitability margins as envisaged and its ability to manage working capital effectively will be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Nascent stage of operations: NAPPL has recently set up a cold storage unit with an aggregate cost of INR10.02 crore funded at debt equity of 1.73x and it has started its commercial operations since March 1, 2018. Since the company is into nascent stage of operations, the operations stabilization risk exists. Going forward, the ability of the company to stabile its operations, achieve the envisaged revenue and profitability margins will be crucial for the company. Regulated nature of business: In West Bengal, the basic rental rate for cold storage operations is regulated by the state government through West Bengal State Marketing Board. The rent of these cold storages is decided by taking into account political considerations, not economic viability. Due to severe government intervention, the cold storage service providers cannot enhance rental charge commensurate with increased power tariff and labour charges. Seasonality of business with susceptibility to vagaries of nature: NAPPL's operation is seasonal in nature as potato is a winter season crop with its harvesting period commencing in February. The loading of potatoes in cold storages begins by the end of February and lasts till March. Additionally, with potatoes having a preservable life of around eight months in the cold storage, farmers liquidate their stock from the cold storage by end of season i.e., generally in the month of November. The unit remains non-operational during the period from December to January. Furthermore, lower agricultural output may have an adverse impact on the rental collections as the cold storage units collect rent on the basis of quantity stored and the production of potato is highly dependent on vagaries of nature. Competition from other local players: In spite of being capital intensive, the entry barrier for new cold storage is low, backed by capital subsidy schemes of the government. As a result, the potato storage business in the region has become competitive, forcing cold storage owners to lure farmers by providing them interest bearing advances against stored potatoes which augments the business risk profile of the companies involved in the trade. Key Rating Strengths Experienced promoter: NAPPL is being managed by Mr. Laikat Ali Mallick, aged about 51 years, having around five years of experience in potato trading business. He looks after day to day operations of the company supported by other directors. Proximity to potatoes growing region: NAPPL's cold storage facility is located at Burdwan, West Bengal which is one of the major potato growing regions of the state. The favorable location of the storage unit, in close proximity to the leading potato growing areas provides it with a wide catchment and making it suitable for the farmers in terms of transportation and connectivity. Incorporated in June 2016, Nurneher Agro Products Private Limited (NAPPL) was promoted by Mr. Liakat Ali Mallick and Mrs. Nurneher Begam Mallick for setting up a cold storage facility for potatoes in Burdwan, West Bengal. The company has setup its cold storage facility having a capacity 14.0 lakh quintal with a cost of INR10.02 crore funded at a debt equity of 1.73x and . The company has started loading its cold storage and commenced its operations from March 1, 2018. PALAK FERRO: ICRA Maintains D Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings said the rating for the INR20.00 crore bank facilities of Palak Ferro Alloys 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- 6.10 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating continues to remain in the 'Issuer Not Cooperating' category Fund based- 0.10 [ICRA]D; ISSUER NOT COOPERATING; Term Loan Rating continues to remain in the 'Issuer Not Cooperating' category Unallocated 13.80 [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 Palak Ferro Alloys, 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. Established in 2008 as a proprietorship firm by Mr. Rahul Parwani, PFA is engaged in the manufacturing of ferro alloys and manganese oxides. The firm has its manufacturing facility located at Nagpur, Maharashtra. PFA has an installed capacity of 1500 MTPA for manufacturing ferro alloys such as medium carbon (MC) - ferro manganese, low carbon (LC) - ferro manganese and silico manganese, and 1500 MT for manufacturing manganese oxides. Ferro alloys find application in the steel industry whereas manganese oxides are used in the fertilizer industry. QUAD LIFESCIENCES: Ind-Ra Affirms 'BB+' LT Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Quad Lifesciences Private Limited's (QLPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR12 mil. Term loan due on January 2020 withdrawn (paid in full) and the rating are withdrawn; -- INR180 mil. Fund-based working capital limit affirmed with IND BB+/Stable/IND A4+ rating; -- INR40 mil. Fund-based working capital limit* assigned with IND BB+/Stable/IND A4+ rating; and -- INR30 mil. Proposed fund-based working capital limit withdrawn (the company did not proceed with the instrument as envisaged) and the rating is withdrawn. * The final rating has been assigned following the receipt of the loan documents for the above facility by Ind-Ra. KEY RATING DRIVERS The affirmation reflects QLPL's continued medium scale of operations and modest credit metrics. QLPL's revenue increased to INR 717.12 million in FY18 (provisional financials) from INR637.57 million in FY17, primarily driven by an increase in demand from existing customers and the addition of new customers. In FY18, its net leverage (total Ind-Ra-adjusted net debt/operating EBITDAR) was 2.15x (FY17: 1.76x) and interest coverage (operating EBITDA/gross interest expense) was 3.23x (2.99x). The marginal deterioration in the net leverage was primarily due to higher fund-based limit utilization. On the other hand, the improvement in the coverage was mainly due to a rise in absolute EBITDA (FY18: INR88.83 million; FY17: INR78.39 million). The ratings factor in QLPL's modest liquidity, indicated by an average working capital limit utilization of 97% for the 12 months ended April 2018. The ratings, however, are supported by a comfortable operating margin of 12.39% in FY18 (FY17: 12.30%). The ratings continue to be supported by the promoter's experience of more than two decades in manufacturing active pharmaceuticals ingredients. RATING SENSITIVITIES Negative: A decline in the profitability leading to deterioration in the credit metrics on a sustained basis would be negative for the ratings. Positive: A significant rise in the revenue and the EBITDA margin leading to an improvement in the credit metrics on a sustained basis would lead to a positive rating action. COMPANY PROFILE QLPL manufactures active pharmaceutical ingredients from herbs, seeds, and plants at its site in Derabassi, Punjab. RIDHI SIDHI: CARE Lowers Rating on INR7.62cr LT Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Ridhi Sidhi Pulses (RSP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 7.62 CARE D; ISSUER NOT COOPERATING; Facilities Revised from CARE B+ on the basis of best available information CARE has been seeking information from RSP to monitor the rating(s) vide e-mail communications/letters dated May 10, 2018 and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, RSP has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on RSP's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The revision in the rating of Ridhi Sidhi Pulses (RSP) takes into account ongoing delays in debt servicing owing to stressed liquidity and the account is NPA as per the verbal communication with the banker. Detailed description of the key rating drivers Key Rating Weakness Irregularity in debt servicing: The banker of the firm has verbally confirmed delays in debt servicing of RSP and the account is NPA due to stressed liquidity of the firm. Merta City-based (Rajasthan) Ridhi Sidhi Pulses (RSP) was formed in 2013, as a proprietorship concern by Mr Shreekant Mantri with an objective to set up a dall mill. RSP has completed its project and started commercial operations from January, 2014. The firm is engaged in the business of manufacturing of chana dall from chana and moong mogar as well as moong polish dall from moong. It procures raw material from the local mandis as well as from farmers and sells it to wholesalers mainly Maharashtra, Tamil Nadu, Gujarat and Rajasthan. It sells its products in 30 kg and 50 kg packets and markets under the brand name of Ridhi Sidhi Pulses. RUCHI SOYA: Lenders to Meet Today to Discuss Bids ------------------------------------------------- Press Trust of India reports that lenders of bankruptcy-hit Ruchi Soya are likely to meet again today, May 30, to discuss bids submitted by Patanjali Ayurveda and Adani group which are in the race to acquire the Indore-based edible oil firm. A Committee of Creditors (CoC) met on May 29 to discuss the bids of these two companies. PTI says Patanjali had revised its bids upwards to about INR43 billion, which is around 30 per cent higher than the Adani's offer. Patanjali has also assured the lenders that it would invest extra capital required to revive the company. According to the news agency, sources said that the CoC is likely to meet today, May 30, to consider both the bids and decide on voting. Haridwar-based Patanjali group had emerged as the front runner with a bid of over INR40 billion to acquire Ruchi Soya, PTI notes. The CoC of the company is meeting today, May 30, and may finalise the bids. Apart from Patanjali and Adani, the other companies which have shown interest in acquiring Ruchi Soya are Wilmar, Emami Agrotech and Godrej Agrovet, according to PTI. Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging. Ruchi Soya, facing the insolvency proceedings, has a total debt of about INR120 billion, PTI discloses. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold. Earlier, Patanjali spokesperson had said that the company has bid for Ruchi Soya as it aims to be a major player in edible oil segment, particularly soybean oil. It also wants to work for farmer's benefit, PTI notes. About Ruchi Soya Ruchi Soya Industries Ltd. engages in crushing of oil seeds and extraction/refining of edible oil along with manufacturing of related products like vanaspati and textured proteins. It is also engaged in import/export as well as domestic trading of various agri-commodities. It is the flagship entity of the Indore, Madhya Pradesh based Ruchi Group, which has business interests spread across various sectors including edible oil, agri-commodity trading, liquid and dry storage warehousing for agri-products and real estate. RSIL has manufacturing presence at 20 locations across India. In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed to act as Interim resolution Professional (IRP), according to PTI. The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code. Ruchi Soya has a total debt of about INR120 billion. S.R. PRECISION: CARE Lowers Rating on INR4.68cr Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of S.R. Precision Components Private Limited (SRPCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 4.68 CARE D; ISSUER NOT COOPERATING; Facilities Revised from CARE B+; Issuer not cooperating, based on best available information Short term Bank 2.25 CARE D; ISSUER NOT COOPERATING; Facilities Revised from CARE A4; Issuer not cooperating, based on best available information CARE has been seeking information from SRPCL to monitor the rating(s) vide e-mail communications/letters dated May 16, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information. In line with the extant SEBI guidelines CARE's rating on S.R. Precision Components Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account ongoing delays in debt servicing. Detailed description of the key rating drivers The revision in the rating takes into consideration following weaknesses: Key Rating Weaknesses Ongoing delays in debt servicing: There are ongoing delays in debt servicing on account of weak liquidity position as the company is unable to generate sufficient funds in a time manner. SRPCL was incorporated in July, 2011 with the company starting its operations in March 2012. SRPCL is currently being managed by Mr. Sukhdev Chand Gupta and Mr. Tilak Raj. SRPCL is engaged in the trading of iron scrap. The iron scrap traded is mainly procured from suppliers located in Mandi Gobindgarh (Punjab). Apart from that, the company is also engaged in the manufacturing and jobwork of automobile crank shafts used in commercial four wheelers, Tractors and Combines. The company has its manufacturing facility located at Derabassi, Punjab with total installed capacity of manufacturing 30,000 pieces per annum as on January 31, 2016. Besides SRPCL, the directors are also engaged in another group concerns namely Sutlej Constructions Pvt. Ltd. and Sutlej Projects Pvt. Ltd. SAHARANPUR INSTITUTE: ICRA Reaffirms B- Rating on INR15cr Loan -------------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating at [ICRA]B- for the INR15.0-crore bank facilities of Saharanpur Institute of Medical Sciences Private Limited (SIMS). The outlook on the long- term rating is stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- based Term Loan 15.0 [ICRA]B-(stable); reaffirmed Rationale: ICRA's rating continues to factor in the extensive experience of the promoters in the healthcare industry, being associated with multiple hospitals in the past. The rating further takes comfort from the regular support provided by the promoters in the form of interest-free unsecured loans, which have increased over the past financial years. The rating, however, remains constrained by the low occupancy and the low average revenue per bed per day along with the modest scale of operations. The weak operating metrics have resulted in weak return and coverage indicators. The company also faces stiff competition from various hospitals in other Tier- I and Tier-II cities. Going forward, the company's ability to improve its operating metrics and the timely support of the promoters will be the key rating sensitivities. Outlook: Stable ICRA notes the extensive experience of the promoters and the strong position of the hospital as a multi-speciality in Saharanpur. The outlook may be revised to Positive if SIMS achieves significant improvement in occupancy, resulting in better operating metrics. The outlook may be revised to Negative if the company faces further decline in operating metrics or capital structure further deteriorates. Key rating drivers: Credit strengths Extensive experience of promoters: The promoters have extensive experience in the healthcare industry, being associated with multiple hospitals in the past. Further, the hospital benefits from its position as one of the leading multi-speciality hospitals in Saharanpur, Uttar Pradesh. Regular support from promoters: The promoters have been supporting the business on a regular basis. The hospital has been facing cashflow mismatches, which are being met by the promoters through interest-free unsecured loans. The loans given increased to INR14.7 crore as on February 28, 2018 from INR12.2 crore as on March 31, 2017. Credit challenges Low occupancy with weak operating metrics: The occupancy of the hospital has improved since inception; however, it still remains low (30-40% from FY2017 to FY2018). Further, the average revenue per bed per day has also remained low at around INR1704 in FY2017, resulting in weak operating metrics. Significant debt repayments to exacerbate dependency on promoter funds: The company has significant debt repayments going forward. Moreover, low occupancy and weak operating metrics have resulted in a net loss of INR6.1 crore in FY2017, further exacerbating the dependency on promoter funding. Further support from promoters is expected, considering the significant debt repayments going forward. Stiff competition from various players: Though the company has established itself as a multi-speciality hospital in Saharanpur, Uttar Pradesh, the occupancy has remained low because of stiff competition from various hospitals in other Tier-I and Tier-II cities. SIMS was incorporated in July 2010, by a team of doctors led by Dr. Ravi Jain and Dr. Ajay Kumar. Located at Delhi Road in Saharanpur, Uttar Pradesh, SIMS is a multi-specialty hospital spread over an area of about 6,800 square metres with a capacity of 120 beds. The institute commenced operations in December 2015 and provides a comprehensive suite of health services, which include neurology, cardiology, oncology, and orthopaedics. The company reported a net loss of INR6.1 crore in FY2017 on an operating income (OI) of INR7.5 crore against a net loss of INR4.7 crore on an OI of INR2.3 crore in 4M FY2016. SARA TEXTILES: CRISIL Moves B+ Rating to Non-Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Sara Textiles Limited (SIPL) for obtaining information through letters and emails dated April 26, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 51 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Letter of credit & Bank Guarantee 8 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Long Term Bank Loan Facility 7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 13 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 Sara Textiles Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sara Textiles Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Sara Textiles Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. SIPL, set up by Mr. D P Singh in 1973, trades in iron ore fines, hot-rolled steel coils, textiles, cement, steel, and coal. The company had formed a joint venture, Gopalpur Port Ltd, with Odisha Stevedores Ltd for developing the port in Gopalpur, Odisha. SBL CONSTRUCTION: Ind-Ra Keeps 'D' Rating in Non-Cooperating Cat. ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained SBL Construction Private Limited's (SCPL) Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)'on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Fund-based limit maintained in Non-Cooperating Category with IND C (ISSUER NOT COOPERATING) rating; -- INR55 mil. Proposed fund-based limit maintained in Non- Cooperating Category with Provisional IND C (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund-based limit maintained in Non-Cooperating Category with IND C (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 1, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SCPL, incorporated in July 2005, is engaged in civil construction work of medium and large industrial, commercial, institutional and residential projects. SEAM INDUSTRIES: CARE Cuts Rating on INR38.37cr LT Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Seam Industries Ltd (SIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 38.37 CARE D Revised from Facilities CARE BB (SO); Negative Short term Bank 30.00 CARE D Revised from Facilities CARE A4 (SO) Detailed Rationale & Key Rating Drivers The revision in the ratings takes into account the ongoing delays in debt servicing resulting from the stress in liquidity position on the back of receivables under arbitration. The facilities of SIL are backed by an unconditional &irrevocable corporate guarantee extended by the holding company Sunil Hitech Engineers Limited (SHEL; rated 'CARE D') which is also undergoing stressed liquidity position mainly on account of combination of increasing working capital requirements to support increasing turnover and order-book, inability of the company to secure additional bank lines (to fund the same) and slowdown in receipts from clients. Detailed description of the key rating drivers Ongoing delays in debt servicing (including LC devolvements and overdrawals in cash credit account) As per the banker interaction, there have been continuous LC devolvements as well as overdrawals in the cash credit account for a period of around 30 to 35 days. This is mainly on account of stress in the liquidity position. There has been delays in receiving payment from clients and such receivables are under arbitration. SIL was incorporated as a backward integration unit to help its parent Sunil Hi-Tech Engineers Limited (SHEL) to consolidate its fabrication and installation know-how in the power sector. SIL is a subsidiary of SHEL, which holds 88.61% (as on March 31, 2017), while the rest is held by promoters of Sunil Hitech in their individual capacity. SIL is engaged in the manufacturing of pressure parts used by power plants, petrochemical plants, sugar industry and heavy engineering industry. SIL primarily undertakes fabrication related to pressure parts, IBR (Indian Boiler Regulations) certified piping systems. Besides, that it also undertakes fabrication of tanks, cooling coils, trays and jackets, distillation columns and volumetric condensers. SIL operates out of two units located in Nagpur with a combined area of 1,50,000 sq. meters and covered sheds of 11,800 sq. metres. The two units have a consolidated installed capacity of fabrication of 24,000 metric tonnes per annum (MTPA) of structures, 4,000 MTPA of piping and 5,000 MTPA of carbon piping and allied works. The major power clients of Sunil Hitech Engineers Ltd are BHEL, Reliance Infrastructure, Dossan Chennai Works Pvt Ltd, etc. SEANTO MINERALS: ICRA Maintains D Rating in Non-Cooperating Cat. ---------------------------------------------------------------- ICRA Ratings said the rating for the INR8.00 crore bank facilities of Seanto Minerals and Energy 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- 3.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating continues to remain in the 'Issuer Not Cooperating' category Non-fund based 3.00 [ICRA]D; ISSUER NOT COOPERATING; Letter of Credit Rating continues to remain in the 'Issuer Not Cooperating' category Unallocated 2.00 [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 Seanto Minerals and Energy 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 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Incorporated in 2008, Seanto Minerals and Energy Limited is promoted by Mr. Sanjay Sanghai and his family. The company is engaged in trading of textiles and ferrous products. Key products traded by the company include shirtings and denims, stainless steel plates and heavy melting scrap. SHIV SHAKTI: Ind-Ra Moves 'B' Issuer Rating to Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shiv Shakti Modern Rice Mill Private Limited's (SSMRMPL) 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: -- INR64.21 mil. Proposed fund-based limits migrated to Non- Cooperating Category with Provisional IND B (ISSUER NOT COOPERATING) rating; and -- INR70.79 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 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 SSMRMPL was incorporated in 2013 by Mr. Birendra Kumar, Mr. Ram Krishna Kumar and Mrs. Monika Kumari for setting up a paddy processing plant in the Raxaul city, Bihar. SHREE GANPATLAL: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shree Ganpatlal Onkarlal Agrawal & Company's (SGOAC) Long-Term Issuer Rating to 'IND BB (ISSUER NOT COOPERATING)' from 'IND BBB- (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating action is: -- INR180 mil. Working capital loans downgraded with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on the best available information. KEY RATING DRIVERS The downgrade reflects Ind-Ra's expectation of weakening of SGOAC's credit metrics due to its dependence on group entities Swastik Coal Corporation Pvt. Ltd. ('IND D (ISSUER NOT COOPERATING)') and Arka Carbon Fuels Pvt. Ltd. ('IND D (ISSUER NOT COOPERATING)'), who have defaulted on their debt repayments. COMPANY PROFILE SGOAC was originally formed as a proprietary concern by Ms. Geeta Devi Bindal in 1988. It was later reconstituted as a partnership firm in FY09. The firm has four partners: Ms. Geeta Devi Bindal, Mr. Vishnu Prasad Bindal, Mr. Hitesh Bindal and Swastik Coal Corporation Pvt. Ltd. The firm provides coal transportation, loading, unloading and handling services through its wide network of branches across India. SGOAC facilitates the group to act as an end-to-end service provider across the complete value chain from sourcing and procurement to the final delivery of coal. SHRI KK: Ind-Ra Maintains BB+ Issuer Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shri K. K. Jain Educational Trust's bank facilities 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 ratings. The ratings will continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR120.4 mil. Term loan maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Working capital facility maintained in non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 25, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1998, Shri K. K. Jain Educational Trust operates three schools in collaboration with Delhi Public School Society namely Delhi Public School Aligarh, Delhi Public School Civil Lines (Aligarh) and Delhi Public School Hathras. SOUTH EAST UP POWER: Ind-Ra Affirms 'D' on INR37,132BB Loans ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed South East U.P. Power Transmission Company Limited's (SEUPPTCL) senior project bank loans as follows: -- INR37,132 bil. Senior project bank loans (long term) affirmed with IND D rating. KEY RATING DRIVERS The affirmation reflects the continued delays in debt serving obligations by SEUPPTCL's since the last rating action due to a tight liquidity position. SEUPPTCL has not been able to complete phase 2 of the ongoing project and the cost overrun is not yet funded. The company has not provided FY17 and FY18 annual reports to Ind-Ra. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months will be positive for the ratings. COMPANY PROFILE SEUPPTCL was incorporated on September 11, 2009. It has signed a transmission service agreement with four distribution companies in Uttar Pradesh to erect, commission and operate 765kV S/C Mainpuri- Bara Line with 765kV/400kV in Mainpuri. The transmission network is around 1,600km in length with five substations and is split into two phases. SEUPPTCL is a wholly owned subsidiary of Mainpuri Power Transmission Private Limited. The project has been undertaken to evacuate power from a few thermal power plants and improve the reliability and quality of supply. Phase 1 is operational. SREE DHANNVIJAY: CRISIL Moves B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Sree Dhannvijay Texmills Private Limited (SDTPL) for obtaining information through letters and emails dated April 5, 2018, May 8, 2018 and May 14, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Cash 0.54 CRISIL B+/Stable (Issuer Not Credit Limit Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sree Dhannvijay Texmills Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sree Dhannvijay Texmills 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 Sree Dhannvijay Texmills Private Limited to CRISIL B+/Stable Issuer not cooperating'. SDTPL was established in 2004 by Mr Vijay Shankar and his wife, Mrs Dhanalakshmi. The Coimbatore-based company manufactures cotton and polyester yarn. SRI KUMARSWAMY: CRISIL Reaffirms D Rating on INR44MM LT Loan ------------------------------------------------------------ CRISIL Ratings' rating on the long-term bank facility of Sri Kumarswamy Mineral Exports Private Limited (SKMEPL) continues to reflect the company's delay in servicing its term debt because of weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 44 CRISIL D (Reaffirmed) The rating continues to reflect the company's cash flow mismatch and large working capital requirement have led to weak liquidity for SKMEPL.The company, however, benefits from its promoters' extensive experience in the mining industry. Key Rating Drivers & Detailed Description * Delay in repayment of term-loans: The rating reflects a delay of 44 days in servicing term-debt obligations, due to weak liquidity, constrained by cash flow mismatches and high working capital intensity. CRISIL will closely monitor the company's performance, related to debt servicing obligations. Weakness * Susceptibility to volatile iron ore prices and forex rates: Operating margin is exposed to significant volatility, both in iron ore prices and foreign exchange rates. Iron ore prices are determined by global demand and supply patterns (China being a key demand driver) and were highly volatile recently. As the company deals in the spot market and has no long-term contracts with suppliers or customers, it becomes vulnerable to such volatility. Moreover, as majority of revenue is derived via e-auctions in the domestic market, fluctuation in forex rates also impacts the margin significantly. Strengths * Extensive experience of promoters in the iron ore mining business: The promoters, Mr. Gureddi, Mr. Alva and Mr. Prasad are business acquaintances, with experience of over two decades in mining related activities. Relevant qualifications and extensive experience has enabled smooth execution of business operations through various business cycles and resulted in healthy relations with domestic and overseas customers. SKMEPL, set up in 1992 and based in Bellary, Karnataka, is promoted and managed by Mr. Shantesh Gureddi, Mr. Ravindranath Alva, and Mr. Bhavani Prasad. It has acquired iron ore mines on lease from the Government of Karnataka. For fiscal 2017, estimated profit after tax (PAT) was INR3 crore on net sales of INR35.5 crore, against a PAT of INR1.9 crore on net sales of INR39.4 crore for fiscal 2016. SUBHASH POULTRY: CARE Assigns B+ Rating to INR6cr LT Loan --------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Subhash Poultry Complex (SPC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.00 CARE B+; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of SPC are tempered by short track recod and small scale of operations with thin PAT margin, moderate capital structure and weak debt coverage indicators, working capital intensive nature of operations, Cyclical nature of poultry industry and risk associated to any outbreaks of bird flu and other diseases, highly fragmented with intense competition from large number of players and constitution of the entity as partnership firm with inherent risk of possibility of withdrawal of the capital at the time of personal contingency. The rating, however, derives its strengths from experienced partners of the entity, satisfactory PBILDT margin with stable outlook demand of poultry products. Going forward, ability of the firm to increase its scale of operations and profitability margins, improve the capital structure and debt coverage indicators and manage working capital requirements efficiently would be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Short track record and small scale of operations: The firm was established in the year 2016, hence it has a short track record of business operations. Further, the scale of operations of the firm is small and marked by total operating income of INR 10.78 crore in FY18(prov) coupled with moderate net worth base of INR4.23 crore as on March 31, 2018 (prov) as compared to other peers in the industry. Moderate capital structure, weak debt coverage indicators and working capital intensive nature of operations: SPC has moderate capital structure during review period. The debt equity ratio and over all gearing ratio of the firm stood moderate at 0.25x and 1.44x as on March 31, 2018(prov) on account of minimal amount of long term loan i.e, INR0.89 crore and its working capital intensive nature of operations. The firm has weak debt coverage indicators during review period. Total debt/GCA improved from 33.64x in FY17 to 17.87x in FY18 (prov) on account of high outstanding balance of working capital borrowings. SPC debt profile is dominated by the working capital borrowings. The PBILDT interest coverage ratio of the firm also stood weak at 1.48x in FY18 (prov). The operating cycle of the entity is elongated during review period due to inventory holding of around 220-230 days as the firm is engaged in rearing of parent chicks, producing eggs and selling cull birds. These chicks go through four different stages of development for laying eggs and ultimately sold as cull bird to complete one business cycle. The four different development stages are Chick stage (0 day-8th week), Grower stage (9th-18th week), Egg stage (19th-72nd week) and Cull bird (after 72nd week). The Day Old Chicks (DOCs) are reared throughout the business life cycle and these chicks start laying eggs from third stage i.e. from 19th week. The operating cycle stood at 214 days in FY18 (prov). The average utilization of working capital facility of the entity was 80% for the last 12 months ended April 30, 2018. Highly fragmented industry with intense competition from large number of players and vulnerability of profits to raw material price movements: SPC faces stiff competition in the poultry business from large number of established and unorganized players in the market. Competition gets strong with the presence of unorganized players leading to pricing pressures. Going further, low entry barriers in these highly competitive segments would lead to oversupply situation which in turn may affect the profitability of the entity. However, improved demand scenario of poultry products in the country enables well for the entity. Maize is relatively a small scale crop in India and being a rain-fed crop, any monsoon failure will affect its harvest. The Poultry industry consumes more than 50% of the domestic maize production and its demand is expected to exceed the overall supply in the future. As the poultry industry is virtually a buyers' market, any sharp increase in raw material prices may not be fully passed on to the consumers thereby affecting the profit margin of the firm. Cyclical nature of poultry industry and risk associated to any outbreaks of bird flu and other diseases: SPC operates in a cyclical industry on account of outbreaks of bird flu and other diseases which van affect demand and cause prolonged impact on margins and turnover. The firm margins are also susceptible to volatility in feed prices in the poultry business. Constitution of the entity as partnership firm with inherent risk of withdrawal of capital: Constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partner's capital at the time of personal contingency which can adversely affect its capital structure. Furthermore, a partnership firm has restricted access to external borrowings. Key Rating Strengths Experience of the partner for more than a decade in poultry business: SPC was established in the year 2016 and is promoted by Mr. Srinivasa Rao (Managing Partner) and his other family members. Mr. Srinivasa Rao, is a graduate and have the experience of more than a decade in the poultry business. Due to long term experience in the poultry business, the partners have good relations with supplier and customers. Growth in total operating income during review period: The total operating income of the firm increased from INR6.47 crore in FY17 to INR10.78 crore in FY18(prov) due to increase in demand and repeat orders from its existing customers. Satisfactory PBILDT margin albeit thin PAT margin: The PBILDT margin of the firm remained satisfactory and stood at 9.74% in FY18 (prov). The PAT margin of the entity has been thin and stood at 1.71% in FY18 (prov) due to low operating profit along with high financial expenses on account of high utilisation of working capital limits. Stable outlook demand of poultry products: Poultry products like eggs and cull birds have large consumption across the country in the form of bakery products, cakes, biscuits and different types of food dishes in home and restaurants. The demand has been driven by the rapidly changing food habits of the average Indian consumer, dictated by the lifestyle changes in the urban and semi- urban regions of the country. The demands for poultry products are sustainable and accordingly, the kind of industry is relatively insulated from the economic cycle. Andhra Pradesh based, Subhash Poultry Complex (SPC) was established in the year 2016 as a partnership firm and is promoted by Mr. Srinivasa Rao and his other family members. The partners of the firm have experience of more than a decade in the poultry business. The firm is engaged in farming of egg laying poultry birds (chickens) along with trading of eggs and cull birds. The firm has two plants in East Godavari District having its one of the plant location at Alamuru Mandal and the other at Rangampeta Mandal, covering the areas of 3 acres and 4 acres respectively. The firm sells its products like eggs and cull birds in the local market. On demand, the firm also sells the manure of the birds in the local market. The firm mainly buys chicks (small chickens) from Srinivas Hatcheries and purchases the raw materials for feeding of birds like maize, rice from local markets within the Andhra Pradesh and other raw materials like soya from Maharashtra. SUDEEP EXIM: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sudeep Exim Private Limited' (SEPL) 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: -- INR85 mil. Fund-based working capital limits maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2006, SEPL is engaged in trading of steel. SUDHAMSU EXIM: ICRA Lowers Rating on INR15cr Loan to D ------------------------------------------------------ ICRA has revised the long-term and short-term ratings for the bank facilities of Sudhamsu Exim Private Limited (SEPL) to [ICRA]D 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D/D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Unallocated 15.00 [ICRA]D ISSUER NOT COOPERATING; Rating revised from [ICRA]B+/A4 and rating continues to be 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/dated/ 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, despite the downgrade. Rationale The rating downgrade follows the delays in debt servicing by SEPL to the lender, as confirmed by them to ICRA. Sudhamsu Exim Private Limited (SEPL) was incorporated in 2008 and is promoted by Mr. M. Pruthvi Raj Reddy and family. Up to FY2013, the company was involved in trading of construction materials. From FY2014 onwards, the company has been involved in execution of civil projects related to construction of houses and for renewable energy generation. The company is currently involved in the execution of civil works for 100MW wind power project for Axis Energy Limited. Also, the company has recently received the order from JREDA for Design, Testing, Supply, Installation and Commissioning of indigenous solar photovoltaic power plant for rural electrification of 290 villages in Jharkhand. TRUE WELL: ICRA Withdraws 'B' Rating on INR9cr Cash Loan -------------------------------------------------------- ICRA Ratings has withdrawn the long-term rating of [ICRA]B to the INR13.37 crore fund-based bank limits and INR2.63 crore unallocated limits of True Well E Pipe Industries (TWEPI) 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 ---------- ----------- ------- Fund based 9.00 [ICRA]B ISSUER NOT COOPERATING; Limits-Cash Withdrawn Credit Fund based 4.37 [ICRA]B ISSUER NOT COOPERATING; Limits-Term Withdrawn Loans Unallocated 2.63 [ICRA]B ISSUER NOT COOPERATING; limits Withdrawn Rationale The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension at the request from the company based on no dues certificate provided by its lenders. True Well E Pipe Industries was established as a proprietary concern in 2012 by Mr. M. V. Rama Krishna. The firm is involved in the manufacturing of rigid PVC pipes of different dimensions certified by BIS. The total installed capacity of the plant is 1200 kgs per hour and the plant is located in Nellore district of Andhra Pradesh. VBS TEXTILES: CARE Reaffirms B+ Rating on INR44cr LT Loan --------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of VBS Textiles Private Limited (VTPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 44.00 CARE B+; Stable Reaffirmed Short-term Bank Facilities 4.25 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of VTPL continue to remain constrained on account of its nascent stage of operations with small scale in FY18 (refers to the period April 1 to March 31), presence in highly fragmented and competitive textile industry and susceptibility of profit margins to volatility in raw material prices. The ratings, however, derives strength from experienced promoters in diversified industries. VTPL's ability to increase its turnover and improve its profitability in light of competitive business environment and volatile raw material prices remain the key rating sensitivities. Further, VTPL's ability to improve its solvency position along with efficient working capital management would also remain crucial. Detailed description of the key rating drivers Key Rating Weaknesses Nascent Stage of operations with small scale of turnover: VTPL reported Total Operating Income (TOI) of INR4.29 crore for its seven months of operations in FY18 (Provisional) for the period August 2017 to February 2018. Presence in highly fragmented and competitive textile industry and susceptibility of profit margins to volatility in raw material prices: VTPL operates in highly fragmented market of textile industry marked by large number of organized and unorganized small sized players. Also, the presence of big sized players with established marketing & distribution network results into intense competition in the industry. Furthermore, VTPL is engaged in the business of printing and dyeing of cloth, the major raw material of which is chemical, prices of which remain volatile in nature and put a pressure on the profit margins of the players. Key Rating Strengths Experienced promoters in diversified industries: VTPL was incorporated in 2016 by Ms. Shanna Shah and Mr. Sukoon Shah. Both the directors have nearly a decade of experience in diversified industries like coal trading, chemical trading, and managing a process house. Ahmedabad-based (Gujarat), VTPL is a private limited company incorporated in 2016, by two promoters i.e. Ms. Shanna Shah and Mr. Sukoon Shah. VTPL is engaged in the business of dyeing and printing of fabric. The company also does job work for few renowned companies in the textile industry. It carries out its manufacturing from its facility located in Ahmedabad (Gujarat) with an installed capacity of 1,00,000 metres of fabric per day as on February 28, 2018. The company commenced its commercial operations from August 2017. Till February 28, 2018 (Provisional), VTPL has registered TOI of INR4.29 crore. YARLAGADDA EXPORTS: CRISIL Reaffirms B+ Rating on INR17MM Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Yarlagadda Exports Private Limited (YEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 17 CRISIL B+/Stable (Reaffirmed) Foreign Exchange Forward .25 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 10.75 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect the company's modest scale of operations, large working capital requirement, and below-average financial risk profile because of subdued debt protection metrics and small networth. These weaknesses are partially offset by the extensive experience of its promoter in the tobacco industry and established customer relationship. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in highly fragmented segment: Revenue was small at INR24.3 crore in fiscal 2018 due to intense competition from large players in the tobacco segment. * Below-average financial risk profile: Networth was modest at an estimated INR7.03 crore and gearing high at about 2 times, as on March 31, 2018. Low profitability and large working capital debt led to weak debt protection metrics, with estimated net cash accrual to total debt and interest coverage ratios of 0.02 time and 1.28 times, respectively, in fiscal 2018. * Large working capital requirement: Gross current assets are estimated at 335 days as on March 31, 2018, on account of sizeable inventory of 225 days and stretched receivables of 120 days. Inventory is large because tobacco is procured during the harvesting season for the entire year's requirement. Strength: * Extensive experience of promoter: Presence of more than two decades in the tobacco business has enabled the promoter to develop strong relationship with major suppliers and customers. Outlook: Stable CRISIL believes YEPL will continue to benefit from the extensive experience of its promoter. The outlook may be revised to 'Positive' if significant increase in revenue and profitability results in sizeable net cash accrual. The outlook may be revised to 'Negative' if liquidity deteriorates due to delay in realisation of receivables or significant decline in revenue and profitability. Incorporated in 1990 and promoted Mr Y A Chowdary, YEPL processes and sells tobacco. Office is in Guntur, Andhra Pradesh. ZEPHYR FABRIC: CARE Lowers Rating on INR25cr LT Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Zephyr Fabric Trading LLP, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 25.00 CARE D Revised from Facilities CARE BBB-; Stable (Cash Credit) Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of Zephyr Fabric Trading LLP is on account of delays in servicing of debt obligations due to stress in the liquidity position of the firm. Detailed description of the key rating drivers Key Rating Weaknesses On-going delays in servicing of debt obligations: As per interaction with the lenders and management of the group, there are on-going delays in servicing of interest payment and overdrawals in fund based limits for more than 30 days due to stretched liquidity position of the firm. The firm operates in a working capital intensive nature of business and stretched recoveries from customers further tightened the liquidity position of the firm. Analytical approach: Combined A combined view is considered for 'Oneworld Group' group which includes Oneworld Creation Pvt Ltd (OCPL), Oneworld Industries Pvt Ltd (OIPL), Oneworld Retail Pvt Ltd (ORPL), Oneworld Sourcing (OS), Tissori India Fabrics Pvt Ltd (TIFPL), Maison De Couture Pvt Ltd (MDC), Zephyr Fabric Trading LLP (ZFT), Worsted Overseas Trading LLP (WOT), WorldStar Fabric LLP (WF), Ultimo Fabrics Pvt Ltd (UFPL) and Oneworld Design Studios Pvt Ltd (ODS). The combined view for the group is on account of strong operational and managerial linkages being in the same line of business and common promoters. Established in the year 1995 by Mr Urvil Jani and Mr Manoj Khushalani, the group began its business under a partnership firm "Roshvil Enterprise". The firm was engaged in the business of trading of fabrics in bulk quantities for men's wear. Subsequently, the product profile was diversified by the firm to cater to women's wear and ready-made garments. Owing to increase in the scale of operation over the years, the group was re- christened as Oneworld group and the business carried under the partnership firm was transferred to a private limited companies incorporated in the year 2012 viz Oneworld Industries Private Limited. Consequently, many other companies were incorporated to carry on trading of various textile products. Currently, the group is engaged in the business of trading in fabric materials and readymade garments (manufactured on job work basis). WF was incorporated on September 15, 2015 to establish and undertake business of trading of men's bottom wear in India. =============== M A L A Y S I A =============== PERISAI PETROLEUM: Third Quarter Net Loss Widens to MYR244.52MM --------------------------------------------------------------- Chester Tay at theedgemarkets.com reports that Perisai Petroleum Teknologi Bhd's third quarter net loss expanded by 3.7 times to MYR244.52 million, from RM65.3 million a year ago, due to an impairment loss on plant and equipment, and the expiry of contracts. Revenue for the quarter ended March 31, 2018 (3QFY18) dropped 36% to MYR29.36 million from MYR46.13 million previously, relates theedgemarkets.com. In a filing with Bursa Malaysia, Perisai attributed the lower revenue and profit to the expiry of contracts for eight offshore support vessels in August last year, according to the report. For the cumulative nine-month period (9MFY18), the group's net loss narrowed 29.4% to MYR245.92 million, from MYR348.35 million in the previous corresponding period, while revenue declined 21% to MYR96.95 million from MYR123.31 million, theedgemarkets.com discloses. Moving forward, Perisai said the outlook for the demand for oil and gas assets in the short to medium term remains challenging, the report adds. "The group will remain cautious on its capital and cost management. Operational efficiency of the operating asset is expected to be maintained," Perisai, as cited by theedgemarkets.com, said. About Perisai Petroleum Perisai Petroleum Teknologi Bhd. (KLSE:PERISAI) -- http://www.perisai.biz/-- is a Malaysia-based investment holding company engaged in the provision of management, administrative and financial support services to its subsidiaries. The Company operates in three segments: Drilling Units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas offshore drilling; Production units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas production, and Marine Vessels, which is engaged in the provision of vessels, barges and equipment on vessel charter services. Its subsidiaries include Alpha Perisai Sdn. Bhd., which is engaged in the provision of administrative support services; Perisai Offshore Sdn. Bhd., which is engaged in the provision of oil and gas services in upstream oil sector, and Perisai production Holdings Sdn. Bhd., which is an investment holding company, among others. Perisai Petroleum has been classified as a Practice Note 17 (PN17) company after its unit Perisai Capital (L) Inc defaulted on SGD125 million debt notes due on Oct. 3, 2016. ==================== N E W Z E A L A N D ==================== ORION HEALTH: Axes 177 Jobs; Reports NZ$40MM Annual Loss -------------------------------------------------------- Tom Pullar-Strecker at Stuff.co.nz reports that Orion Health has revealed it has cut 177 jobs since March as it seeks to stem its losses. Stuff relates that Orion Health once rivalled Xero as one of the country's top technology successes and at its peak employed 1,200 staff in New Zealand and overseas. But investors who bought into its 2014 sharemarket float would now have lost almost 90 per cent of their money. According to the report, Orion's cuts come amid expectations of further job losses in the high-tech sector at Spark. Spark said on May 28 that it expected to cut see its labour bill fall by almost a fifth over the 18-month period between last June and this December - supporting speculation early last year that it was planning for the loss of about 1,000 jobs, a proportion of which are believed to have already gone. Stuff notes that reporting Orion's annual result, chief executive Iain McCrae said the company had been impacted by changes to Obamacare funding in the United States that had forced some of its customers there to retrench. Orion Health reported a loss of NZ$40 million in the year to the end of March, up from a loss of NZ$34 million the previous year, with revenues down 14 per cent to NZ$170 million, Stuff discloses. Slides shown by the company during its results presentation showed it cut the number of full time employees in its loss-making population health and hospitals divisions by 173 staff, to 659, between March 1 and May 28, the report relays. Another four jobs were cut from its core Rhapsody division which helps healthcare providers pull together patient data from different sources, Stuff discloses. According to Stuff, Chairman Andrew Ferrier said Orion Health was making progress with a "strategic review" that some think could involve a partial trade sale of the business. "Work on due diligence and structure is largely complete. However, until any final agreement is reached we can't give any certainty on the nature or terms of any transaction," the report quotes Mr. Ferrier as saying. Stuff relates that Craigs Investment Partners analyst Steven Ridgewell said it would be fair to say it was a "disappointing year for Orion and its shareholders". It was unclear what kind deal Orion was working on, for example whether it might be a full sale of the company or a partial sale, he said, Stuff relays. But Mr. Ridgewell said there might be strong interest from buyers in Orion's Rhapsody division, which employs 130 staff, and which was the firm's "crown jewels" and could be quite easy to separate, relates Stuff. "It is a very good product, profitable and growing at 10 per cent a year. Then you have got the other divisions which are burning a lot of a cash. "My preference would be that they hold on to Rhapsody and wind down the rest of it - or at least focus on the areas where they can make money." Orion Health's US expansion had gone off the rails and it had "over-extended" with too many moonshots, Mr. Ridgewell, as cited by Stuff, said. "This is not 'another Wynyard' - it is quite a big business and there are highly profitable parts and they can restructure to survive. "But it is obviously a painful process for all concerned; staff, shareholders and I am sure the board as well." Orion chief financial officer Mark Tisdel forecast "flat" to slightly increased revenues this financial year, and a slight loss or break-even result, Stuff adds. Headquartered in Auckland, New Zealand, Orion Health Group Limited engages in the development, implementation, hosting, sale, and support of software for the healthcare IT market. PLEASANT POINT: Inland Revenue Applies For Hotel's Liquidation -------------------------------------------------------------- Rachael Comer at Stuff.co.nz reports that Pleasant Point Hotel's future hangs in the balance, with Inland Revenue calling on nearly $500,000 in unpaid taxes. According to Stuff, Inland Revenue has filed an application to put the company that owns the only hotel in the South Canterbury town into liquidation. The application, filed on March 15, which asks to put Pleasant Point Hotel 2015 Limited into liquidation, was heard in Timaru on May 28. The appeal stated that Pleasant Point Hotel 2015 Limited owes the department NZ$439,287.85, Stuff relays. Stuff, citing New Zealand Companies Office record, discloses that the company's director is Christopher Angus Steele, of Pleasant Point. He became the director in March 2012 and has 100 per cent shares in the business. He refused to comment on the future of the hotel, but said it was "business as usual," Stuff adds. In its application, Inland Revenue said the company owed money for goods and services tax (GST), Pay as you earn (PAYE) tax deductions, KiwiSaver employee deductions and employer contributions, student loan deductions, interest and penalties, employer superannuation and contribution tax, Stuff reports. It also said there were no outstanding objections or challenges in relation to the assessment of the amount owed. The company was served with a statutory demand, pursuant to Section 289 of The Companies Act 1993, on January 25, asking for payment of NZ$385,606.85. "The defendant company failed to comply with the demand," the application, as cited by Stuff, said. "The defendant company is insolvent and unable to pay its debts." Inland Revenue has requested that Pleasant Point Hotel 2015 Limited be put into liquidation by the court. ********* 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 ***