/raid1/www/Hosts/bankrupt/TCRAP_Public/180620.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, June 20, 2018, Vol. 21, No. 121
Headlines
A U S T R A L I A
BIG REVIEW: Second Creditors' Meeting Set for June 26
C & F COMMERCIAL: Second Creditors' Meeting Set for June 25
CASSAITA ENTERPRISES: Second Creditors' Meeting Set for June 27
FREE SPIRIT: Second Creditors' Meeting Set for June 27
ICON BREWING: Second Creditors' Meeting Set for June 26
NEW EMERALD: Second Creditors' Meeting Slated for June 26
SKY COMMUNICATIONS: In Administration; Owes More than AUD3.5MM
H O N G K O N G
JOYCE BOUTIQUE: Annual Loss Widens to HK$54.7 Million
PEARL HOLDING: S&P Alters Outlook to Negative & Affirms 'B' ICR
I N D I A
ACCENT METALS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
ADINATH SORTEX: CRISIL Reaffirms B+ Rating on INR7cr Cash Loan
AMIT RICE: CRISIL Reaffirms B Rating on INR6.5cr Cash Loan
ARROWLINE REALESTATE: Ind-Ra Assigns BB LT Rating, Outlook Stable
ASHCONS INFRASTRUCTURE: Ind-Ra Assigns BB+ Rating, Outlook Stable
ASPEN SHAVING: CRISIL Migrates B+ Rating to Not Cooperating
BAJRANG NIRMAN: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating
BRFM INDIA: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
CRAFT INT-DECOR: CRISIL Migrates B+ Rating to Not Cooperating
DURASIGN CORP: CRISIL Migrates B Rating to Not Cooperating
ELECTRONIC APPLYANCES: CRISIL Withdraws B+ Rating on LT Loan
EMBIOTIC LABORATORIES: CRISIL Moves B+ Rating to Not Cooperating
GUJARAT NRE: Proposes Scheme to Revive Company
HAWK GRANITO: CRISIL Assigns B+ Rating to INR30.35cr LT Loan
HY-TUF STEELS: Ind-Ra Affirms BB+ Issuer Rating; Outlook Stable
INCA MULTISOLUTIONS: CRISIL Migrates B Rating to Not Cooperating
J AND B ENGINEERING: CRISIL Reaffirms B- Rating on INR7.5cr Loan
JAISHREE KRISHNA: CRISIL Migrates B Rating to Not Cooperating
KESHAV COTTON: CRISIL Raises Rating on INR5cr Cash Loan to B+
KESHAV PULSES: CRISIL Migrates B+ Rating to Not Cooperating
KHAMMAM SPICE: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
KRISHNA VASUDEVA: CRISIL Withdraws B Rating on INR15cr Cash Loan
MARUTI CHEMICALS: CRISIL Raises Rating on INR4.5cr Loan to B+
MUSALE CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
MUTHU SILK: CRISIL Reaffirms B+ Rating on INR6cr Cash Loan
NATASHA AUTOMOBILES: CRISIL Migrates B+ Rating to Not Cooperating
NIJAGUNA LAND: CRISIL Migrates D Rating to Not Cooperating
PEE KAY: CRISIL Migrates B Rating to Not Cooperating Category
PLAZMA GRANITO: CRISIL Lowers Rating on INR20cr Term Loan to D
PUNJ LLOYD: Hopes NCLT May Not Admit ICICI Bank's Insolvency Plea
R.G. TIMBERS: CRISIL Migrates B- Rating to Not Cooperating
RAMSAAI REAL: CRISIL Reaffirms D Rating on INR6.42cr LT Loan
RAVANI TIMBER: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
RIA HOTELS: Ind-Ra Migrates 'B+' Issuer Rating to Non-Cooperating
RM DAIRY: CRISIL Migrates B+ Rating to Not Cooperating Category
SARASWATI TRADING: Ind-Ra Maintains 'B' Rating in Non-Cooperating
SATYAM ISPAT: CRISIL Moves D Rating to Not Cooperating Category
SHANTI DEVI: CRISIL Moves B+ Rating to Not Cooperating Category
SINDHUJAA RESIDENCY: CRISIL Moves B+ Rating to Not Cooperating
SPIRIT INFRATECH: Ind-Ra Maintains 'D' Rating in Non-Cooperating
SRI RAMACHANDRA: CRISIL Migrates B+ Rating to Not Cooperating
SRI SATYANARAYANA: CRISIL Migrates B+ Rating to Not Cooperating
SOUTH PARK: CRISIL Migrates B+ Rating to Not Cooperating Category
SRIKARA PACKAGING: CRISIL Migrates D Rating to Not Cooperating
SUNBOND CERAMIC: CRISIL Reaffirms B+ Rating on INR3.5cr Loan
TRIMURTHI HITECH: CRISIL Assigns B- Rating to INR4.75cr Loan
UNISEX AGENCIES: CRISIL Withdraws B+ Rating on INR10cr Cash Loan
WORLDTECH INDUSTRIES: CRISIL Assigns B- Rating to INR4.1cr Loan
YOUNG BRAND: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
J A P A N
TOSHIBA CORP: Moody's Hikes CFR and Sr. Unsec. Debt Rating to B1
N E W Z E A L A N D
GENESIS ENERGY: S&P Assigns BB+ ICR on New NZ$240MM Securities
T1 HOLDINGS: In Interim Liquidation as Worldclear Chases NZ$4MM
S R I L A N K A
BANK OF CEYLON: Moody's Assigns Ba3 Counterparty Risk Ratings
V I E T N A M
AN BINH: Moody's Assigns B1 Long-Term Counterparty Risk ratings
- - - - -
=================
A U S T R A L I A
=================
BIG REVIEW: Second Creditors' Meeting Set for June 26
-----------------------------------------------------
A second meeting of creditors in the proceedings of Big Review TV
Limited has been set for June 26, 2018, at 10:00 a.m. at the
offices of McGrath Executive Suites, Level 5, 115 Pitt Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 25, 2018, at 5:00 p.m.
Anthony Elkerton and Cameron Gray of DW Advisory were appointed
as administrators of Big Review on May 21, 2018.
C & F COMMERCIAL: Second Creditors' Meeting Set for June 25
-----------------------------------------------------------
A second meeting of creditors in the proceedings of C & F
Commercial Pty. Ltd. has been set for June 25, 2018, at
10:00 a.m. at the offices of Cor Cordis, One Wharf Lane, Level
20, 171 Sussex Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 22, 2018, at 4:00 p.m.
Alan Walker and Andre Lakomy of Cor Cordis were appointed as
administrators of C & F Commercial on May 18, 2018.
CASSAITA ENTERPRISES: Second Creditors' Meeting Set for June 27
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Cassaita
Enterprises Pty Ltd, trading as EL BULLI, has been set for
June 27, 2018, at 11:00 a.m. at the offices of Veritas Advisory
Level 5, 123 Pitt Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 26, 2018, at 4:00 p.m.
Steve Naidenov and Vincent Pirina of Veritas Advisory were
appointed as administrators of Cassaita Enterprises on May 22,
2018.
FREE SPIRIT: Second Creditors' Meeting Set for June 27
------------------------------------------------------
A second meeting of creditors in the proceedings of Free Spirit
Airlines Pty Ltd has been set for June 27, 2018, at 10:30 a.m. at
the offices of 2nd Floor, 106 Hardware Street, in Melbourne.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 22, 2018, at 4:00 p.m.
Alan Walker and Andre Lakomy of Cor Cordis were appointed as
administrators of Free Spirit on May 18, 2018.
ICON BREWING: Second Creditors' Meeting Set for June 26
-------------------------------------------------------
A second meeting of creditors in the proceedings of Icon Brewing
Company Pty Ltd has been set for June 26, 2018, at 11:30 a.m. at
the offices of Cor Cordis, One Wharf Lane, Level 20, 171 Sussex
Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 25, 2018, at 5:00 p.m.
Barry Wight and Bruno A Secatore of Cor Cordis were appointed as
administrators of Icon Brewing on May 28, 2018.
NEW EMERALD: Second Creditors' Meeting Slated for June 26
---------------------------------------------------------
A second meeting of creditors in the proceedings of New Emerald
Coal Pty Ltd has been set for June 26, 2018, at 2:00 p.m. at
Level 3, 95 Macquarie Street, in Parramatta, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 25, 2018, at 4:00 p.m.
Riad Tayeh of de Vries Tayeh was appointed as administrator of
New Emerald Coal on May 21, 2018.
SKY COMMUNICATIONS: In Administration; Owes More than AUD3.5MM
--------------------------------------------------------------
Samira Sarraf at ARN reports that telecommunications provider Sky
Communications has entered administration with more than AUD3.5
million in debts.
Sky Communications (SkyComms) was a subsidiary of New Zealand-
headquartered Electra. According to the company's website,
SkyComms had a turnover of AUD25 million and claimed Vodafone,
Alcatel-Lucent and Huawei as customers, among other names, ARN
relays.
However, the business was sold four years ago, according to
SkyComms New Zealand.
SkyComms designs, builds, supplies, project manages and maintains
wireless, fibre and copper networks and supply products for
network operators.
An application for the winding up of the company was entered by
the Australian Taxation Office (ATO) in November 2017, the report
recalls.
In February, the Federal Court of Australia appointed Brent Leigh
Morgan -- bmorgan@rodgersreidy.com.au -- from Rodgers Reidy as
the liquidator.
ARN relates that in a letter to creditors from May 23, the
liquidator informed creditors that the sale for the majority of
the company's assets took place on February 27 and was ratified
by the Federal Court of Australia in Melbourne on April 10.
A total of AUD250,000 was paid for those assets which now belong
to a company called Sky Communications Aust, which was registered
with the Australian Competition and Investments Commission (ASIC)
on February 2018, according to ARN.
The same letter states that at the time the liquidator was
appointed the company employed 80 staff, of which only one
decided not to move to the new business, ARN says.
According to the document, the liquidator's initial
investigations determined that the company may have been trading
insolvent since February 2015.
ARN, citing copy of the minutes of the first meeting of
creditors, held on June 12, discloses that the company is now in
administration with Morgan appointed the administrator.
Among the company's creditors is Ben Lek, claiming AUD582,000,
who, according to LinkedIn, has been Australian general manager
of Sky Communications since 2010.
According to documents lodged with Australia's corporate
regulator, Lek is also named as a proxy for Lek Supply Trading,
which claims AUD409,000, and for Sky Communications Aust, which
claims AUD659,000, ARN discloses.
The total amount owed to the ATO is AUD1.9 million, ARN notes.
The company is still trading from its New South Wales office but
it is moving out of the Victorian premises.
================
H O N G K O N G
================
JOYCE BOUTIQUE: Annual Loss Widens to HK$54.7 Million
-----------------------------------------------------
The Standard reports that Joyce Boutique Holdings reported a loss
of HK$54.7 million for the year ended March 31, 2018, compared
with a net loss of HK$41.9 million for the year before.
Loss per share was 3.4 HK cents, compared with (2.6 HK cents in
2016/17), the multi-brand retailer reported.
According to the Standard, Joyce Boutique said that the business
outlook remains somewhat uncertain, but that the group aims to
reduce its operating losses.
The Hong Kong division operating loss increased to HK$50.7
million versus HK$31.8 million in the previous year, reflecting a
6.5 percent fall in division revenue, the Standard discloses.
The Standard says Hong Kong division revenue accounted for 88.7
percent of group revenue compared with 85.6 percent in 2016/17
financial year. As a result, the operating loss of the Hong Kong
division widened by HK$18.9 million to HK$50.7 million, from
HK$31.8 million in 2016/17.
According the Standard, the mainland China division operating
loss narrowed to HK$2.4 million from HK$3.7 million in the
previous year, after underperforming shops were closed. Revenue
dropped by 30.4 percent against the same period last year, partly
due to a general decline in sales performance and partly due to
closures of shops. Gross margin also fell by 4.6 percentage
points due to the relatively higher proportion of revenue
contributed by liquidation of aged stocks.
Joyce Boutique Holdings Limited, an investment holding company,
retails and distributes designer fashion garments, cosmetics, and
accessories in Hong Kong, the People's Republic of China, and
internationally. As of March 31, 2017, it operated 39 shops,
including 3 multi-label JOYCE stores, 9 mono-brand shops, 11
JOYCE Beauty shops, and 1 JOYCE Warehouse outlet in Hong Kong; 2
multi-label JOYCE shops, 1 mono-brand shop, and 2 JOYCE Warehouse
outlets in Mainland China; 1 mono-brand shop in Macau; and 9
Marni shops in Hong Kong and Taiwan under the joint venture
partnership with Marni Group S.r.l.
PEARL HOLDING: S&P Alters Outlook to Negative & Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its rating outlook on Pearl Holding
III Ltd. to negative from stable. S&P said, "At the same time, we
affirmed our 'B' long-term issuer credit rating on the Hong Kong-
headquartered plastic injection molding and components
manufacturer. We also affirmed the 'B' long-term issue rating on
the company's outstanding senior secured notes."
S&P said, "We revised the outlook to negative to reflect Pearl's
increasing adjusted gross debt leverage following the company's
weak operating performance in the first quarter of 2018.
"We estimate that Pearl's adjusted gross debt leverage (inclusive
of severance payments that should cease after 2018) increased to
5.1x for the 12 months ended March 31, 2018, up from our adjusted
pro forma gross debt leverage of 4.6x for 2017. This is after the
company's revenue and reported EBITDA before pro forma net run-
rate savings fell by 1% and 30% year-over-year, respectively, in
the quarter ended March 31, 2018.
"We attribute the decline in Pearl's EBITDA to weakness in the
mobile segment, where the company's revenue fell 48% year over
year in the first quarter of 2018. The consumer electronics
segment grew 47%, offsetting most of the topline pressure.
However, the consumer electronic segment has lower margins than
the mobile segment."
Pearl's sales are likely to remain soft until the third quarter
of 2018. The company has meaningful sales exposure to a key
mobile phone manufacturer, which launches new phones once a year.
This customer's sales were weak in the first quarter of 2018,
resulting in reduced follow-up orders for Pearl.
However, Pearl has won more mandates from this key customer for
its next-generation product. If this new product is well received
in the market, Pearl should be able to reverse the negative trend
in its operating performance.
S&P said, "We affirmed the ratings on Pearl because we expect the
company to continue to have a small market share in the highly
competitive, volatile, and fragmented plastic injection molding
and component market. High customer concentration risk will
remain over the next 12-24 months. Additionally, we expect the
company's financial policy to be aggressive because it is owned
by Platinum Equity Partners, a private equity firm."
Pearl is likely to maintain its record of good execution and cost
discipline. These strengths have contributed to its long client
relationships. The company's relationship with its clients
averages about 10 years. Such long relationships are particularly
important in light of the low switching costs and intense
competition in the market.
However, the majority of Pearl's clients have significant scale,
demand volume, and pricing power. Therefore, any potential
expansion in profit margin for Pearl will mainly come from cost
savings and better utilization of existing and new assets.
S&P said, "We estimate that Pearl's EBITDA margin (excluding the
one-off acquisition cost) is 15.2% for the 12 months ended March
31, 2018, compared with our pro forma estimate of 16.8% at the
end of 2017. We believe Pearl's EBITDA margin will decrease to
13%-14% for 2018, from our original estimate of 16%-17% due to
weaker mobile sales."
Pearl's adjusted gross debt leverage could approach 5.6x
(inclusive of severance payments that should cease after 2018) by
the end of 2018, due to the EBITDA decline. S&P said, "We believe
Pearl will focus on integrating and rationalizing its assets and
that of Fischer Tech Ltd. (which Pearl acquired in 2017) over the
next 12 months. We assess Pearl's financial risk profile as
highly leveraged based on the above factors."
S&P said, "We anticipate that Pearl will have a net working
capital outflow of Hong Kong dollar (HK$) 5 million-HK$10 million
in 2018 and 2019. This is mainly due to its new automotive
programs that have longer collection periods, and a change in the
customer mix.
"We expect Pearl to generate minimal free operating cash flow in
2018, and HK$77 million-HK$82 million in 2019. We estimate that
the company will incur capital expenditure of HK$90 million-HK$95
million in 2018 and HK$20 million-HK$25 million in 2019, mainly
for consolidating operations and building new facilities in
Suzhou. We expect Pearl to begin to move its facilities to Suzhou
in late 2018 and realize cost savings in 2019.
"The negative outlook on Pearl reflects our expectation that
Pearl's adjusted gross debt leverage could approach 6x over the
next 12 months, given the company's diminishing EBITDA margin. We
expect the company to maintain its market position and adequate
liquidity over the period.
"We may lower the rating on Pearl if the company's adjusted gross
debt-to-EBITDA ratio rises above 6.0x. This could result from a
significant decline in demand for the company's products or from
debt-financed special dividends.
"We may revise the outlook to stable if we believe Pearl will be
able to maintain its adjusted gross debt-to-EBITDA ratio below
5.5x. This could happen if Pearl can recover its momentum in its
mobile business while maintaining stable working capital
management."
=========
I N D I A
=========
ACCENT METALS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Accent Metals
Private Limited's 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. Therefore,
investors and other users are advised to take appropriate caution
while using the rating.
The instrument-wise rating actions are:
-- INR4.0 mil. Term loan (long-term) downgraded with IND D
(ISSUER NOT COOPERATING) rating;
-- INR235.0 mil. Fund-based working capital facility (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR219.6 mil. Non-fund-based working capital facility (short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The ratings have been downgraded following a confirmation from
the lenders of Accent Metals that the company has been
categorized as a non-performing asset.
COMPANY PROFILE
Accent Metals manufactures various types of non-ferrous (copper
and copper based) extruded semis such as bars, tubes and
profiles. The ISO 9001:2009 certified company has a 6,000metric
tons capacity for copper and brass extrusion at Pawane in Navi
Mumbai. The company also trades in copper and brass products and
scrap.
ADINATH SORTEX: CRISIL Reaffirms B+ Rating on INR7cr Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facility of Adinath Sortex (AS).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 7 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the modest scale, and working
capital-intensive nature, of operations, and average financial
risk profile. These rating weaknesses are partly mitigated by
extensive experience of the promoters in the agricultural (agro)
products trading business, and their established relationships
with customers.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Intense competition and limited
value addition in the agro products business, have kept the scale
of operations modest, as reflected in revenue and operating
margin of INR35.5 crore and 3-3.5%, respectively, in fiscal 2018.
However, an upgradation in machinery and the resultant increase
in daily capacity to 125 tonnes, from 110 tonnes earlier, should
support growth in fiscal 2019.
* Working capital-intensive operations: Operations are moderately
working capital intensive, marked by gross current assets of 99
days as on March 31, 2018, led by inventory of 50 days and
receivables of 42 days. Inventory of 40-50 days of raw material
is maintained to ensure smooth flow in operations. Customers are
offered credit of 10-15 days. Bank limit utilisation averaged 80-
90.6% over the 12 months through March 2018.
* Average financial risk profile: Financial risk profile is
marked by a small networth and total outside liabilities to
tangible networth ratio of INR2.46 crore and 4.05 times,
respectively, as on March 31, 2018. Debt protection metrics are
average, with interest coverage and net cash accrual to adjusted
debt ratios of 1.9 and 0.06 time, respectively, for fiscal 2018.
Strength
* Extensive experience of the Partners: The two decade-long
experience of the partners in agro-based businesses, and their
healthy relationships with customers, will continue to support
the business risk profile.
Outlook: Stable
CRISIL expects AS to benefit from the extensive experience of its
partners. The outlook may be revised to 'Positive' if significant
and sustained growth in revenue and profitability leads to
substantial cash accrual. The outlook may be revised to
'Negative' if lower cash accrual, stretch in working capital
cycle, or any major capital expenditure, weakens the financial
risk profile, especially liquidity.
AS was set up in 2013, by promoters, Mr. Shobhag Mal Chajjed and,
Mr. Pankaj Sancheti. The firm processes and sorts agro-
commodities, such as wheat, maize, soybean meal, and sells its
products under the brands, Rumali Roti, Yes Boss and Missi Roti.
The processing and sorting plant is located at Nimbahera near
Chittorgarh, Rajasthan.
AMIT RICE: CRISIL Reaffirms B Rating on INR6.5cr Cash Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-
term facilities of Amit Rice and Gen. Mills (ARGM).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 6.5 CRISIL B/Stable (Reaffirmed)
Term Loan 1.5 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the firm's modest scale and
working capital-intensive operations in the highly fragmented
rice industry. The rating also factors in below-average financial
risk profile and weak liquidity. These weaknesses are partially
offset by the extensive industry experience of the proprietor.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: Despite substantial increase in
fiscals 2017 and 2018, the firm's scale of operations remains
small, indicated by estimated revenue of INR36.12 crore in fiscal
2018, constraining the business risk profile.
* Below-average financial risk profile: Modest debt protection
metrics (interest coverage ratio of 2.4 times in fiscal 2018) and
high gearing (3 times as on March 31, 2018) restrain the
financial risk profile.
* Large working capital requirement: The firm had sizeable gross
current assets of 102 days as on March 31, 2018, driven by
inventory of 33 days and stretched debtors of 63 days, leading to
high bank limit utilisation of 94% over the 12 months through
March 2018 and to weak liquidity.
Strength
* Extensive experience of the proprietor: Over his decade-long
experience, the proprietor has established relationships with
customers and suppliers. His experience will continue to support
the business.
Outlook: Stable
CRISIL believes ARGM will continue to benefit from the
proprietor's experience. The outlook may be revised to 'Positive'
if there is a significant increase in revenue while profitability
remains stable, leading to higher cash accrual, and hence, a
better financial risk profile. The outlook may be revised to
'Negative' if large, debt-funded expansion, sharp decline in
revenue and profitability, or sizeable capital withdrawal weakens
the financial risk profile.
Set up in 2005 and promoted by Mr. Amit Gupta, Karnal (Haryana)-
based ARGM mills and sells basmati and non-basmati rice.
ARROWLINE REALESTATE: Ind-Ra Assigns BB LT Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Arrowline
Realestate Private Limited (ARPL) a Long-Term Issuer Rating of
'IND BB'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR450 mil. Long-term loan due on April 2030 assigned with
IND BB/Stable rating.
KEY RATING DRIVERS
The ratings reflect ARPL's nascent stage of its upcoming
commercial project and risks associated with timely project
completion within the projected cost outlay. The project is
scheduled to be completed by June 2020; however, until May 2018,
only 26% of the project attained completion. The total estimated
project cost of INR718.50 million will be funded through term
loans of INR450 million and promoters contribution of INR268.50
million. As of May 2018, ARPL had incurred INR186.5 million.
However, the ratings derive comfort from the project's strategic
location with proximity to railway stations, airport, educational
institutes, and business centers, among others.
The ratings also benefit from the firm's proprietors' more than
one decade of experience in executing commercial projects in and
around Jharkhand.
RATING SENSITIVITIES
Positive: Timely completion of the ongoing project within the
project cost outlay will be positive for the ratings.
Negative: Any cost overrun or delay in commercialization of the
project will be negative for the ratings.
COMPANY PROFILE
ARPL, a part of Beekay Group, was incorporated on 13 July 2012.
The company is setting up a shopping complex-cum-office named
Nucleus Heights at Kanke Road in Ranchi (Jharkhand). The project
has an implementation period of two years and six months. The
firm's registered office is located at Jhalda, West Bengal and
corporate office at Lalpur, Ranchi. Bishnu Kumar Agarwal and
Anushri Agarwal are the directors.
ASHCONS INFRASTRUCTURE: Ind-Ra Assigns BB+ Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ashcons
Infrastructure Private Limited (AIPL) a Long-Term Issuer Rating
of 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR97.5 mil. Fund-based working capital limit assigned with
IND BB+/Stable rating;
-- INR26.63 mil. Term loan due on July 30, 2022 assigned with
IND BB+/Stable rating; and
-- INR50.3 mil. Non-fund-based working capital limit assigned
with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect AIPL's small scale of operations as indicated
by revenue of INR316 million in FY18 (FY17: INR383 million). The
decline in revenue was on account of slower execution of orders.
As of April 2018, it had an order book of INR322.39 million
(1.02x of FY18 revenue). FY18 figures are provisional in nature.
The ratings are constrained by the company's highly concentrated
order book, as it executes a majority of its work orders in and
around Raigad, Maharashtra.
The ratings are also constrained by AIPL's modest EBITDA margin
and credit metrics attributed to the intense competition in the
construction industry and tender-based and working capital
intensive nature of operations. Despite the decline in revenue,
the EBITDA margin improved to 14% in FY18 (FY17: 12.2%) owing to
a decline in other operating expenses. Interest coverage
(operating EBITDA/gross interest expense) deteriorated to 3.05x
in FY18 (FY17: 3.34x) on the back of a decline in absolute
EBITDA; while net leverage (total adjusted net debt/operating
EBITDAR) marginally improved to 2.34x (2.41x) owing to a
reduction in debt level.
The ratings also factor in AIPL's moderate liquidity position as
indicated by 91.72% average use of the working capital limits
during the 12 months ended April 2018.
The ratings, however, are supported by AIPL's founder's more than
two decades of experience in the construction sector.
RATING SENSITIVITIES
Positive: A substantial growth in the revenue, leading to an
improvement in the overall credit metrics on a sustained basis,
will be positive for the ratings.
Negative: A decline in the revenue, leading to deterioration in
the credit metrics on a sustained basis, will be negative for the
ratings.
COMPANY PROFILE
AIPL was established in 1990 as a proprietorship concern, Ashish
Construction, by Mr. Jayaram Rai. In January 2013, it was
reconstituted as a private limited company under the name AIPL.
It is a Class 1-A contractor for undertaking civil construction
and turnkey projects for roads, highways and urban infrastructure
(water, sanitation and sewerage, bridges, beautification
projects, and commercial building and complexes) mainly for
government agencies in Maharashtra. The operations are managed by
Mr. Ashish Rai.
ASPEN SHAVING: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Aspen
Shaving Products (ASP) to CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 0.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 1.0 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 5.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund-
Based Bank Limits 1.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with ASP for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Aspen Shaving Products, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Aspen Shaving Products 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 Aspen Shaving Products to CRISIL B+/Stable/CRISIL
A4 Issuer not cooperating'.
ASP is a proprietorship firm engaged in the manufacture of DE
blades. The manufacturing unit, with a capacity of 33 lakh units
of 100 blade packets, is being set up near Hyderabad, Telangana.
The operations of are managed by Mr. Kasivi. DE blades are cost
effective and commonly used in shaving and hair cutting saloons.
The plant is expected to be operational from April, 2017.
BAJRANG NIRMAN: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bajrang Nirman
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR5.5 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR47.5 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 14, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in January 2006 as a private company, Lucknow-based
BNPL undertakes road construction for the Public Works
Department, Uttar Pradesh.
BRFM INDIA: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned BRFM India
Private Limited (BRFM) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR49.58 mil. Long-term loan due on November 2021 assigned
with IND B+/Stable rating;
-- INR57.5 mil. Fund-based working capital limits assigned with
IND B+/Stable/IND A4 rating; and
-- INR10.5 mil. Non-fund-based working capital limits assigned
with IND A4 rating.
Ind-Ra has taken a consolidated view of BRFM and BRFM Foods
Private Limited for assigning the ratings, as both companies
merged in April 2018.
KEY RATING DRIVERS
The ratings reflect BRFM's weak credit metrics owing to a high
debt. Its interest coverage (operating EBITDA/gross interest
expense) was 1.1x in FY18 (FY17: 1.1x) and net leverage (adjusted
net debt/operating EBITDAR) was 12.3x during the period (9.1x).
The decline in the leverage was owing to a fall in operating
EBITDA and a rise in debt. Ind-Ra expects the credit metrics to
further deteriorate over FY19-FY20, as the company would take
additional debt for a new greenfield project. FY18 financials are
provisional.
The ratings reflect BRFM's medium scale of operations. Its
revenue was INR793 million in FY18 (FY17: INR809 million). The
decline was due to a low concentration on trading, which
contributed 8.0% to the revenue in FY18 (FY17: 22.0%). As of May
2018, BRFM had an outstanding order book of INR18.8 million,
which will be executed by end-July 2018. Moreover, the EBITDA
margin was volatile at 1.5%-0.1% over FY16-FY18 owing to
fluctuating raw material prices. Ind-Ra expects the revenue and
the margin to rise in FY20 in view of the greenfield project
coming online during the period.
The ratings factor in BRFM's modest liquidity, indicated by a
92.3% average utilization of its working capital limits during
the 12 months ended May 2018.
The ratings, however, are supported by the promoter's experience
of more than four decades in the food industry.
RATING SENSITIVITIES
Negative: Any further deterioration in the EBITDA margin or any
cost or time overruns with regard to the greenfield project,
leading to higher deterioration in the credit metrics than Ind-
Ra's expectations, could lead to a negative rating action.
Positive: A substantial rise in the revenue and the EBITDA
margin, leading to an improvement in the credit metrics, on a
sustained basis, will be positive for the ratings.
COMPANY PROFILE
BRFM is engaged in the manufacturing of wheat flour, semolina,
flour and bran and whole wheat flour. Its marketing network is
spread across southern and western India. BRFM is venturing into
new food categories of different flour blends and consumer packs
under its brand BRFM.
CRAFT INT-DECOR: CRISIL Migrates B+ Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Craft Int-
Decor Private Limited (CIPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 5 CRISIL A4 (ISSUER NOT COOPERATING;
Rating Migrated)
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 3.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with CIPL for obtaining
information through letters and emails dated April 30, 2018,
May 18, 2018 and May 23, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Craft Int-Decor Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Craft Int-Decor Private Limited is
consistent with 'Scenario 4' outlined in the 'Framework for
Assessing Consistency of Information'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Craft Int-Decor Private Limited to 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Incorporated in 2003 in Bengaluru and promoted by Mr. Naresh
Sudra and his wife, Ms. Usha Sudra, CIPL undertakes interior
decoration work on the basis of drawings and designs provided by
customers. Entire business is based on tenders floated by private
companies for decoration of commercial office spaces.
DURASIGN CORP: CRISIL Migrates B Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Durasign
Corporation (DSC) to CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Proposed Bank 0.5 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Cash 1.5 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Proposed Long Term 2.0 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Term Loan 1.0 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with DSC for obtaining
information through letters and emails dated March 29, 2018 and
April 30, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Durasign Corporation, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Durasign Corporation 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 Durasign Corporation 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.
For arriving at the ratings, CRISIL has considered DSC's
standalone business and financial risk profiles. CRISIL had
earlier combined the business and financial risk profiles of DSC
and Durasign Technologies (DST). The revised analytical approach
reflects absence of significant financial support and cash flow
fungibility among the companies, and the management's stance of
operating them independently.
Based in Pune (Maharashtra), DSC was established as a partnership
firm in 2011. It manufactures labels and stickers, and undertakes
domed labelling, signage marking and engraving for end-user
industries.
ELECTRONIC APPLYANCES: CRISIL Withdraws B+ Rating on LT Loan
------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of
Electronic Applyances (EA) on the request of the company and
after receiving no objection certificate from the bank. The
rating action is in-line with CRISIL's policy on withdrawal of
its rating on bank loan facilities.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Overdraft 2.5 CRISIL A4 (ISSUER NOT
COOPERATING; Migrated from
'CRISIL A4'; Rating Withdrawn)
Proposed Long Term 7.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with EA for obtaining
information through letters and emails dated April 30, 2018,
May 18, 2018 and May 23, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 EA. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for EA
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of EA to
'CRISIL B+/Stable/CRISIL A4' Issuer not cooperating' from 'CRISIL
B+/Stable/CRISIL A4'.
CRISIL has withdrawn its rating on the bank facilities of EA on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Set up in 1976 as a partnership between Mr. Anil Rathi, Mrs.
Kamladevi Rathi and Mr. Karan Rathi, EA trades in industrial
electrical goods, and provides automation solutions. It is also a
dealer in the products of Siemens Ltd, Cable Corporation of India
Ltd, Bharat Bijlee, and Rittal India Pvt Ltd. The firm is based
in Indore, Madhya Pradesh.
EMBIOTIC LABORATORIES: CRISIL Moves B+ Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Embiotic
Laboratories Private Limited to CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with Embiotic
Laboratories Private Limited (ELPL) for obtaining information
through letters and emails dated March 28, 2018 April 19, 2018,
May 08, 2018, and May 14, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Embiotic Laboratories Private
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Embiotic Laboratories 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 Embiotic Laboratories Private Limited to CRISIL
B+/Stable Issuer not cooperating.
Set up in 1987, ELPL produces various pharmaceutical formulations
in the form of oral solid dosages and liquids. It is based in
Bengaluru and also undertakes contract manufacturing.
GUJARAT NRE: Proposes Scheme to Revive Company
----------------------------------------------
The Telegraph India reports that the promoter of Gujarat NRE
Coke, a company in liquidation after failing to find a resolution
plan under Insolvency & Bankruptcy Code, 2016, has proposed a
scheme under Companies Act, 2013 to revive the company.
According to the Telegraph, four back-to-back meetings of all
stakeholders -- shareholders, foreign currency convertible bond
owners, unsecured and secured creditors -- have been called on
July 16 under the direction of the company law tribunal to
consider the scheme. Under the provisions of sections 230 to 232
of the Companies Act, 2013, the scheme will be effective if all
stakeholders approve it with a three-fourth majority (75 per
cent).
Arun Kumar Jagatramka, the promoter shareholder of Gujarat NRE
Coke, once India's largest non-captive metallurgical coal maker,
said the proposed scheme would be beneficial to all stakeholders,
compared to a liquidation, the Telegraph relates.
"We are probably one of the first companies to revive the
business by this provision of Companies Act, 2013. I'm sure every
stakeholder, including secured creditors, will find the scheme
more attractive than a liquidation," the report quotes Jagatramka
as saying.
According to the report, the company expects shareholders,
unsecured creditors and FCCB holders to approve the scheme with
requisite majority given that they would not earn anything if
Gujarat NRE goes for liquidation. By the time the meeting of the
secured creditor takes place, results of all other meetings would
be known, as it has been slotted last during the day.
The Telegraph notes that a composite scheme of compromise and
arrangement between Jagatramka and the creditors and shareholders
of Gujarat NRE calls for a write-down of the equity capital of
the company, fresh issue of ordinary equity shares and preference
shares thereafter to secured, unsecured creditors and FCCB
holders.
It also calls for paying off INR500 crore loan of the secured
creditors over 10 years with 8.1 per cent interest by an equated
yearly scheme. Following the implementation, lenders' stake will
go up to 38.83 per cent from 32.39 per cent, while promoters
stake will fall from 25.61 per cent to 17.52 per cent, according
to the report.
The Telegraph relates that secured creditors, which had
INR3501.16 crore admitted claim, will get INR40 crore new shares
of face value Re 1 and INR2961 of preference shares redeemable by
a bullet payment after 20 years. The liquidation value of the
company is INR350 crore. Jagatramka said the company would be
able to generate enough cash flow to service the debt as well as
provide potential upside to the shareholders, the Telegraph
relays.
The company went into liquidation in January. However, Jagatramka
has earned a stay on the liquidation from the appellate company
law tribunal on liquidation, the report states.
The promoter, in association with PricewaterhouseCoopers, had
prepared a resolution plan under IBC, according to the report.
But the amendment of November 23, 2017 barred promoters for
putting up a plan without paying overdue amount. The company was
sent to liquidation in January. Jagatramka has earned a stay on
from the appellate company law tribunal on liquidation.
Meanwhile, he is testing the provision of Companies Act to revive
the company.
Gujarat NRE Coke Ltd. (BOM:512579) -- http://www.gujaratnre.com/
-- is an India-based company engaged manufacturing metallurgical
coke. The Company operates in two segments: coal & coke and
steel. The Company together with its subsidiaries owns and
operates two coal mines: NRE No.1 Colliery and NRE Wongawilli
colliery (Avondale and Elouera colliery) having about 652 million
tons insitu resources of metallurgical coal with coking
properties. Coke segment is at the core of the operations of the
Company and contributed approximately 75% of the total turnover
during the fiscal year ended March 31, 2012 (fiscal 2012). Steel
segment contributed around 25% to the total turnover in fiscal
2012.
HAWK GRANITO: CRISIL Assigns B+ Rating to INR30.35cr LT Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Hawk Granito Private Limited (HGPL). The
ratings reflect the company's exposure to risks related to
implementation of its project and to timely stabilisation and
commensurate ramp-up in sales during the initial phase of
operations. These weaknesses are partially offset by the
extensive experience of the promoters in the ceramic industry and
their funding support.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Loan 30.35 CRISIL B+/Stable (Assigned)
Bank Guarantee 4.10 CRISIL A4 (Assigned)
Cash Credit 12 CRISIL B+/Stable (Assigned)
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to project-related risks: Commercial operations are
likely to commence from August 2018. Timely implementation of the
project, stabilisation of operations, and commensurate ramp-up of
sales will remain critical for achieving growth in revenue and
profitability, and hence, will be monitored closely.
* Constrained financial risk profile: Financial risk profile
remains constrained by modest networth and leveraged capital
structure. Gearing is likely to remain high at 2.0-2.5 times over
the medium term, but should improve with build-up in networth and
gradual repayment of term loans. Debt protection metrics are
expected to remain average.
Strengths:
* Extensive experience of the promoters in the ceramics industry:
The promoters' experience of more than a decade in the ceramic
industry through Kevin Ceramics Pvt Ltd, AGT Vitrified Pvt Ltd,
and other companies will benefit HGPL.
* Strategic location of plant: The company's upcoming
manufacturing facility is at Morbi (Gujarat), which is the tile
manufacturing hub in India, ensuring easy availability of raw
materials and labour.
Outlook: Stable
CRISIL believes HGPL will continue to benefit from the experience
of the promoters. The outlook may be revised to 'Positive' if the
anticipated revenue, profitability, and cash accrual are achieved
during the initial phase of operations. The outlook may be
revised to 'Negative' if lower-than-expected cash accrual or a
stretched working capital cycle weakens liquidity.
Incorporated in October 2016 and based in Gujarat, HGPL is
managed by Mr. Prabhulal Vasanjiya, Mr. Jaswant Vasanjaliya, Mr.
Ravnishbhai Vasanjaliya, and Mr. Ankit Ramoliya. The company is
setting up a unit for manufacturing double charge vitrified tiles
and plans to commence operations from August 2018.
HY-TUF STEELS: Ind-Ra Affirms BB+ Issuer Rating; Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Hy-Tuf Steels
Private Limited's (HTSPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR130 mil. Fund-based working capital limits affirmed with
IND BB+/Stable rating;
-- INR34.8 mil. (reduced from INR57.4 mil.) Term loan due on
July 2019-October 2021 affirmed with IND BB+/Stable rating;
and
-- INR8 mil. Non-fund-based working capital limits affirmed with
IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects HTSPL's continued moderate credit
metrics and thin & volatile margins owing to its presence in the
highly fragmented and intensely competitive steel industry and
the commoditized nature of business. According to FY18
provisional financials, revenue marginally improved to INR877.3
million (FY17: INR861.1 million: FY16: INR956.5 million) due to
the general slowdown in the steel market. Net leverage (Ind-Ra
adjusted net debt/operating EBITDAR) improved to 5.9x in FY18
(FY17: 16.1x; FY16: 8.6x), on account of lower utilization of the
working capital limits at end-March 2018, and EBITDA interest
coverage (operating EBITDA/gross interest expense) improved to
2.6x (1.0x; 2.2x) due to an increase in absolute EBITDA. EBITDA
margins improved to 5.5% in FY18 (FY17: 2.1%) on account of
stable raw material prices and higher revenue.
The ratings remain constrained by the company's moderate cash
conversion cycle of 84 day in FY18 (FY17: 76 days; FY16: 67
days). The deterioration in the cycle was due to a delay in
realization from its debtors.
However, the ratings are supported by HTSPL's comfortable
liquidity, indicated by its working capital limit utilization of
about 46% over the 12 months ended May 2018. The ratings are also
supported by the company's promoters' experience of three decades
in the iron and steel industry and the company's operational
history of more than two decades.
RATING SENSITIVITIES
Negative: A decline in the revenue and/or profitability leading
to deterioration in the credit metrics on a sustained basis will
lead to a negative rating action.
Positive: Substantial revenue growth and/or an improvement in the
profitability leading to an improvement in the credit metrics on
a sustained basis will lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1994, HTSPL is a Vadodara-based manufacturer of
TMT bars. The plant has a production capacity of 32,000MTPA for
single shift.
INCA MULTISOLUTIONS: CRISIL Migrates B Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Inca
Multisolutions to CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Proposed Bank 1.5 CRISIL B/Stable (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Cash 1.5 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Proposed Letter 1.5 CRISIL A4 (ISSUER NOT
of Credit COOPERATING; Rating Migrated)
Proposed Long Term 0.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Term Loan 6.0 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with Inca for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Inca Multisolutions, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Inca Multisolutions 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 Inca Multisolutions to CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Inca Multisolutions was incorporated in August 2015 and promoted
by eight partners namely Smt Smita Eghe, Smt Varsha Dargode, Smt
Vaishali Kokane, Smt Santoshi Bhandare, Smt Pallavi Wagh, Smt
Sharada R Karad, Smt Rohini Avhad and Smt Jyoti Awad in equal
profit sharing ratio.
J AND B ENGINEERING: CRISIL Reaffirms B- Rating on INR7.5cr Loan
----------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on
the bank facilities of J and B Engineering and Construction
Company (JBEC).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 7.5 CRISIL B-/Stable (Reaffirmed)
The ratings continue to reflect the firm's small scale of
operations, exposure to intense competition in the civil
construction industry, weak financial risk profile because of low
networth, and large working capital requirement. These weaknesses
are partially offset by the extensive experience of its partners.
Analytical Approach
Unsecured loans from the partners and their family members have
been treated as neither debt nor equity as they are non-interest
bearing and will remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations and exposure to intense competition:
With estimated revenue of INR7.2 crore in fiscal 2018, scale
remains modest in the intensely competitive civil construction
segment. Also, the entire turnover is from Kerala resulting in
geographical concentration risk.
* Weak financial risk profile: Networth is estimated to be small
at INR3.8 crore as on March 31, 2018, and is expected at a
similar level over the medium term on account of limited
accretion to reserves. Estimated interest coverage ratio was weak
at 1.2 times during fiscal 2018. Liquidity is weak with low
cushion between cash accrual and high bank limit utilisation.
* Working capital-intensive operations: Gross current assets are
estimated at 490 days as on March 31, 2018, due to large
inventory resulting in large working capital requirement.
Strength
* Extensive experience of the partners: Presence of around three
decades in the civil construction segment has enabled the
partners to establish strong relationships with customers and
suppliers.
Outlook: Stable
CRISIL believes JBEC will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if revenue and profitability increase significantly
leading to better cash accrual, while working capital management
improves. The outlook may be revised to 'Negative' if revenue and
profitability decline, or if liquidity weakens due to delay in
collection of receivables or larger-than-expected capital
withdrawal.
Established in 1995 by Mr. K A Abraham and his family, JBEC
undertakes civil contracts for government departments (such as
Public Works Department and Kerala Water Authority) of Kerala.
JAISHREE KRISHNA: CRISIL Migrates B Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Jaishree
Krishna and Company (JSKC) to CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 10 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with JSKC for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Jaishree Krishna and Company,
which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Jaishree Krishna and Company 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 Jaishree Krishna and Company to CRISIL B/Stable
Issuer not cooperating'.
Established in 2015 as a partnership firm, JSKC trades in pulses.
The firm, based in Raipur, Chhattisgarh, is managed by Mr.
Priyanshu Agrawal and Mr. Satyad Agrawal.
KESHAV COTTON: CRISIL Raises Rating on INR5cr Cash Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Keshav Cotton Industries (KCI) to 'CRISIL B+/Stable' from
'CRISIL B/Stable'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 5 CRISIL B+/Stable (Upgraded
From 'CRISIL B/Stable')
Proposed Long Term 1.55 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 2.45 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects KCI's better-than-expected capital structure
while maintaining its business profile. Gearing, estimated at 4.5
times as on March 31, 2018, though high, is better than
anticipated due to financial support extended by the partners in
the form of long-term unsecured loans at subsidized interest
rate. This fund infusion by the partners has also supported
liquidity by providing cushion for meeting debt obligation
despite modest cash flow. The partners are expected to continue
extending need-based support; this will remain a key rating
sensitivity factor over the medium term.
The rating also reflects weak financial risk profile and
susceptibility to fluctuations in raw material prices. These
weaknesses are partially offset by the experience of the partners
and favourable location of the manufacturing unit.
Analytical Approach
Unsecured loans (outstanding at INR1.12 crore as on March 31,
2018) extended to KCI by the partners have been treated as
neither debt nor equity as these are expected to remain in the
books over the medium term and carry lower-than-market interest
rates.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Financial risk profile is
constrained by small networth of INR1.1 crore as on March 31,
2018, due to capital withdrawal, leading to high gearing of 4.49
times. Debt protection metrics remain subdued with interest cover
and NCATD estimated at 1.9 time and 0.9 time respectively for FY
18.
* Susceptibility to fluctuations in raw material prices:
Availability of cotton, an agricultural commodity, depends on the
monsoon. Furthermore, government interventions and fluctuations
in global cotton output affect cotton prices, and consequently,
profitability of ginners. KCI's ability to manage volatility in
cotton prices will remain a key sensitivity factor.
Strengths
* Experience of partners: KCI will continue benefit from the
partners' experience of a decade in the cotton ginning industry,
their understanding of the local market dynamics, and established
relationships with customers and suppliers.
* Strategic location of manufacturing unit: The production
facility is in Vijapur (Gujarat, accounts for nearly 33% of
India's total cotton production), which enables the firm to
procure raw cotton directly from local farmers, thus making the
operations cost effective.
Outlook: Stable
CRISIL believes KCI will continue to benefit from the experience
of the partners. The outlook may be revised to 'Positive' if
substantial cash accrual strengthens financial risk profile.
Conversely, the outlook may be revised to 'Negative' if liquidity
weakens because of lower-than-expected cash accrual, stretch in
working capital cycle, or sizeable, debt-funded capital
expenditure.
KCI, based in Vijapur and promoted by 14 partners gins cotton and
produces cotton oil.
KESHAV PULSES: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Keshav
Pulses to CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 1.31 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 0.19 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with Keshav Pulses
(KESPUL) for obtaining information through letters and emails
dated March 29, 2018 and April 19, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Keshav Pulses, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Keshav
Pulses 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 Keshav Pulses 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.
KESPUL was set up as a partnership firm, at Indore, Madhya
Pradesh in 2009. The firm mills, polishes, and sort's pulses,
mainly masoor dal, and has three partners, Mr. Manish Bansal, Ms
Megha Bansal, and Ms Bhagwati Bansal.
KHAMMAM SPICE: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Khammam Spice
Specialties' Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR60 mil. Proposed fund-based working capital limits
migrated to non-cooperating category with Provisional
IND BB- (ISSUER NOT COOPERATING)/Provisional IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 23, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established as a partnership firm in 2011, Telangana- based KSS
is engaged in the trading of chilies in the domestic as well as
overseas markets.
KRISHNA VASUDEVA: CRISIL Withdraws B Rating on INR15cr Cash Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Krishna
Vasudeva Foods And Derivatives Private Limited (KFDPL) on the
request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 15 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
Long Term Loan 1.25 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with KFDPL for
obtaining information through letters and emails dated May 14,
2018 and May 21, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 KFDPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
KFDPL is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of KFDPL
to 'CRISIL B/Stable' Issuer not cooperating' from 'CRISIL
B/Stable'.
CRISIL has withdrawn its rating on the bank facilities of KFDPL
on the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
KFDPL was set up in 2012, by Mr. Nishit Aggarwal and Mr. Vippin
Aggarwal in Ganganagar (Rajasthan). The company mainly processes
chana to chana dal and besan. The manufacturing unit in
Ganganagar, has a capacity of 160 metric tonnes per day.
MARUTI CHEMICALS: CRISIL Raises Rating on INR4.5cr Loan to B+
-------------------------------------------------------------
CRISIL is migrating the ratings Maruti Chemicals Company (MCC)
from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' to
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 4.5 CRISIL B+/Stable (Migrated
From 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Inland/Import 0.75 CRISIL A4 (Migrated from
Letter of Credit 'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 0.75 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Term Loan 0.50 CRISIL B+/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated the ratings
on the bank facilities of MCC to 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'. However, management has subsequently
started sharing information necessary for carrying out a
comprehensive review of the ratings. Consequently, CRISIL is
migrating the ratings from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' to 'CRISIL B+/Stable/CRISIL A4'.
The upgrade factors in expectation of sustained improvement in
business and financial (particularly liquidity) risk profiles.
Scale is expected to register a moderate yearly growth of 10-12%
over the medium term, backed by commencement of manufacturing of
industrial chemicals. Growth is estimated to have been 18% year-
on-year in fiscal 2018, while operating margin was 4.4%, leading
to a better liquidity. Annual cash accrual of INR0.48-0.58 crore
will be sufficient to meet yearly debt obligation of INR0.15-0.2
crore, over the medium term.
The ratings reflect MCC's below-average financial risk profile
because of high total outside liabilities to tangible networth
(TOLTNW) ratio and small networth, large working capital
requirement, and modest scale of operations. These weaknesses are
partially offset by proprietor's extensive experience in the
chemicals industry and diversified product portfolio.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations amid intense competition: Since
operations began in fiscal 2015, growth in topline has been
marginal. Operating income is expected to remain subdued at
INR24.3 crore in fiscal 2019. This is compounded by high
fragmentation in the chemicals trading and manufacturing
industry. Imports and backward-integration initiatives of
customers also affect the margins of chemical manufacturers.
Ability to enhance revenue will be a key rating sensitivity
factor.
* Below-average financial risk profile: Networth is estimated to
be small at INR2.46 crore as on March 31, 2018, on account of low
cash accrual and hence limited accretion to reserves. Networth is
likely to remain modest over the medium term. Hence, TOLTNW
ratio, estimated to be high at 4. 7 times, is expected to remain
at a similar level over the medium term. Also, interest coverage
ratio was muted at 1.4 times for fiscal 2018. Financial risk
profile is expected to remain subdued over the medium term.
* Working capital-intensive operations: Gross current assets are
estimated at 175 days as on March 31, 2018, due to sizeable
inventory of 100-150 days and stretched receivables following
credit of 90-120 days extended to customers. However, exposure to
risks related to bad debt is low because of strong customer
relationship. Since glass is a major end-user industry, the firm
procures key products for this segment from National Aluminium
Company Ltd by availing letter of credit or paying in advance.
For other products, it gets credit of around 90 days. Working
capital requirement is met through trade credit (100 days as on
March 31, 2018), which is likely to remain high over the medium
term.
Strengths
* Extensive experience of proprietor and diversified product
portfolio: The firm's proprietor has over 15 years of experience
in the chemical trading business. Also, product profile is wide
and includes chemicals such as aluminum tri-hydrate, barium
carbonate powder, sodium nitrate, and sodium silico-fluoride,
which find application in the glass, welding electrode, foundry
flux chemicals, and ceramic industries. Though MCC imports and
exports chemicals, majority of revenue comes from the domestic
market. Established relationship with suppliers and customers has
helped to sustain topline and bottom line in the four fiscal
through 2018.
Outlook: Stable
CRISIL believes MCC will continue to benefit from its
proprietor's extensive experience. The outlook may be revised to
'Positive' if the firm significantly scales up operations while
improving working capital management. The outlook may be revised
to 'Negative' if sharp decline in revenue and profitability,
sizeable capital withdrawals, or stretch in working capital cycle
weakens liquidity.
Set up in 1995 in Ahmedabad as a proprietorship firm by Ms Vibha
Bhatti, MCC trades in industrial chemicals. In fiscal 2015, it
began manufacturing of industrial chemicals.
MUSALE CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Musale
Construction (Musale) to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 8 CRISIL A4 (ISSUER NOT COOPERATING;
Rating Migrated)
Cash Credit 7.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with Musale for
obtaining information through letters and emails dated April 30,
2018, May 18, 2018 and May 23, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Musale Construction. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Musale Construction 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 Musale Construction to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Established in 1990 as a partnership between Mr. Sonba Gulabrao
Musale and his brother Mr. Rambhau Gulabrao Musale, Musale
undertakes civil and infrastructure construction works, primarily
in the irrigation and road segments.
MUTHU SILK: CRISIL Reaffirms B+ Rating on INR6cr Cash Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long
term bank facilities of Muthu Silk House (MSH).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 6 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 0.5 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the firm's small scale of
operations in the intensely competitive retail textile industry,
and below-average financial risk profile. These rating weaknesses
are partially mitigated by an established brand and extensive
industry experience of the promoters in the retail trading
segment.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operation, geographic concentration and intense
competition in textile retail business: Though the firm has been
in operations for more than five decades in the same line of
business, its revenues stood modest at about INR23 crore on a
provisional basis for fiscal 2018. The firm has been able to
establish its brand in Puducherry; however, the firm has not
diversified into different states or regions and has been
operating in the same area for the past five decades.
* Below Average Financial Risk Profile: MSH's financial risk
profile is below average marked by a leveraged capital structure
and modest debt protection metrics
Strengths
* Reputed brand and promoters experience in the silk sarees
retail business in Puducherry: MSH has an established presence in
the retail textile business in Puducherry for more than five
decades. It is a well-known brand among customers in and around
Puducherry and has a showroom located in the prime business area
enabling higher footfalls.
Outlook: Stable
CRISIL believes that MSH will maintain its credit risk profile
over the medium term, on the back of its established presence in
the retail textile industry, and the promoter's experience in the
retail trading segment. The outlook may be revised to 'Positive'
if MSH registers a significant increase in its revenues and
profitability, thereby improving its financial risk profile; or
receives a significant capital infusion from the promoters,
thereby enhancing its capital structure. Conversely, the outlook
may be revised to 'Negative', if MSH reports a substantial
decline in its revenues and profitability, or an increase in its
working capital cycle, or if its partners draw significant amount
from the business, thus weakening its financial risk profile.
MSH was set up as a partnership firm in Puducherry in 1960. The
firm trades in silk sarees, synthetic sarees, readymade garments,
and gents and kids wear. MSH operates a 9,000 square feet retail
outlet in Nehru Street, Puducherry. The firm's operations is
currently managed by Mr. P. Namassivayam
NATASHA AUTOMOBILES: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Natasha
Automobiles Private Ltd to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Electronic Dealer 10 CRISIL B+/Stable (ISSUER NOT
Financing Scheme COOPERATING; Rating Migrated)
(e-DFS)
CRISIL has been consistently following up with Natasha
Automobiles Private Ltd (NAPL) for obtaining information through
letters and emails dated March 29, 2018 and April 19, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Natasha Automobiles Private
Ltd. Which restricts CRISIL's ability to take a forward looking
view on the entity's credit quality. CRISIL believes information
available on Natasha Automobiles Private Ltd 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 Natasha Automobiles Private Ltd to 'CRISIL
B+/Stable Issuer not cooperating'.
Incorporated in 1986, NAPL is a dealer for HMIL passenger
vehicles and spares, which it also services. The company
currently operates four showrooms in Bareli (Uttar Pradesh),
Haldwani (Uttarakhand), Budaun (Uttar Pradesh), and Almora
(Uttarakhand), equipped with 3S (sales, service and spares)
facilities.
NIJAGUNA LAND: CRISIL Migrates D Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Nijaguna
Land Developers and Builders (NLDB) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 9 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with NLDB for obtaining
information through letters and emails dated April 25, 2018,
May 18, 2018 and May 23, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Nijaguna Land Developers and
Builders. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Nijaguna Land Developers and Builders 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 Nijaguna Land Developers and Builders to 'CRISIL D
Issuer not cooperating'.
Nijaguna Land Developers and Builders (NLDB) is a proprietorship
firm involved in civil construction works like construction of
roads, bridges and construction and maintenance for irrigation
facilities in Karnataka. The firm is being managed by Mr.
Gowda.
PEE KAY: CRISIL Migrates B Rating to Not Cooperating Category
-------------------------------------------------------------
CRISIL has migrated the ratings on the bank facilities of Pee Kay
Shuttering House (PKSH) to 'CRISIL B/Stable' Issuer not
cooperating' from 'CRISIL B/Stable'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with PKSH for obtaining
information through letters and emails dated May 14, 2018 and
May 21, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 PKSH. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
PKSH is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of PKSH to
'CRISIL B/Stable' Issuer not cooperating' from 'CRISIL B/Stable'.
CRISIL has withdrawn its rating on INR4 crore Cash Credit
facilitiy of PKSH on the request of the company and after
receiving no objection certificate from the bank. The rating
action is in-line with CRISIL's policy on withdrawal of its
rating on bank loan facilities.
Established in 1990 as a proprietorship concern by Mr. Tejpal
Gupta, PKSH, based in Panchkula (Haryana) and rents
scaffoldings/shuttering.
PLAZMA GRANITO: CRISIL Lowers Rating on INR20cr Term Loan to D
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Plazma Granito Private Limited (PGPL) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 2.5 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 7.0 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Long Term 1.5 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
Term Loan 20 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects the instances of the delay in the
repayment of the term loan in the last three months ended as on
May 31, 2018. PGPL has not been servicing the repayment
obligations of its term loan in a timely manner and delays the
same by around 10 to 20 days. The delays in the term loan
servicing are mainly caused by the liquidity mismatch. CRISIL
believes that the timely servicing of the bank debt would be key
monitorable over the medium term.
The ratings reflect the weak liquidity marked by delays in debt
servicing of its term loan along with highly utilized bank lines
due to its working capital intensive operations. These rating
weaknesses are partially offset by the extensive experience of
the promoters in the industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile marked by delays in the debt
servicing: PGPL has not been servicing the repayment obligations
of its term loan in a timely manner and delays the same by around
10 to 20 days. The delays in the term loan servicing are mainly
caused by the liquidity mismatch. CRISIL believes that the timely
servicing of the bank debt would be key monitorable over the
medium term.
* Working capital intensive operations: The company has working-
capital-intensive operations, marked by gross current assets of
about 180-190 days. CRISIL believes that PGPL's operations will
remain working capital intensive over the medium term.
Strengths
* Extensive experience of promoters in the ceramic industry: The
promoters' experience of around two decades in the vitrified and
wall tiles industry through associate entities, and their healthy
relationships with dealers will support PGPL's business risk
profile.
Incorporated in 2014, PGPL is Morbi, Gujarat based company
engaged into manufacturing of vitrified tiles. The commercial
operations of the company started in March, 2017.
PUNJ LLOYD: Hopes NCLT May Not Admit ICICI Bank's Insolvency Plea
-----------------------------------------------------------------
The Economic Times reports that Punj Lloyd on June 14 expressed
hope that the insolvency plea against the company by ICICI Bank
would not be admitted by the National Company Law Tribunal
(NCLT).
According to the report, Punj Lloyd said 90 per cent of its
lenders are supporting a resolution plan under the leadership of
the State Bank of India for restructuring the outstanding debts
of the company.
During NCLT proceedings on June 14, counsel appearing for SBI
challenged the maintainability of ICICI Bank's plea filed under
Insolvency and Bankruptcy Code (IBC) to initiate insolvency
proceedings against the company, Punj Lloyd said in a regulatory
filing, ET relays.
"In view of the above, the company is of the view that the
application filed by ICICI Bank may not be admitted by the NCLT,
since more than 90 per cent of the lenders of the company are in
favour of restructuring the debts," said Punj Lloyd, notes the
report.
In a meeting of the lenders of the company held on June 13, more
than 90 per cent of the lenders have agreed for restructuring its
outstanding debts of the company, it added.
"It was also decided that SBI, on behalf of all lenders, shall
oppose ICICI application at NCLT," the filing informed, reports
ET.
ET notes that ICICI Bank's plea was heard on June 14 by the
principal bench of NCLT headed by President Justice M M Kumar,
which issued notices to Punj Lloyd and SBI.
According to ET, the two-member bench has directed to list the
matter on July 24 for next hearing.
However, during the proceedings, another consortium of lenders
led by State Bank of India, opposed the insolvency application
filed by ICICI Bank, the report says.
According to them, Punj Lloyd's asset base covers only 5 per cent
of the total debt and a full recovery of their outstanding dues
is possible only if the company is allowed to complete the 28
ongoing projects.
Punj Lloyd has total debt of around INR6,000 crore, in which
ICICI bank claims are around INR850 crore, ET discloses.
Punj Lloyd Ltd is an engineering & construction company in India,
providing integrated design, engineering, procurement,
construction (EPC) and project management services for oil & gas,
process industry and infrastructure sector projects. PLL has
various subsidiaries operating in multiple geographies and
engaged in EPC in the field of oil and gas and infrastructure
sector.
R.G. TIMBERS: CRISIL Migrates B- Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of R.G. Timbers
and Saw Mills (RG) to 'CRISIL B-/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 2 CRISIL B-/Stable(ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 8 CRISIL A4 (ISSUER NOT COOPERATING;
Rating Migrated)
CRISIL has been consistently following up with RG for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 R.G. Timbers and Saw Mills.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on R.G. Timbers and Saw Mills 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 R.G. Timbers and Saw Mills to 'CRISIL B-
/Stable/CRISIL A4 Issuer not cooperating'.
Established in 1999 as a partnership firm by Mr. K.Ramasamy and
his wife Mrs. R.Ganapathiammal, RG trades in timber mainly in
Tamil Nadu and Kerala.
RAMSAAI REAL: CRISIL Reaffirms D Rating on INR6.42cr LT Loan
------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility
of Ramsaai Real Estate Private Limited (RREPL) at 'CRISIL D'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Loan 6.42 CRISIL D (Reaffirmed)
The rating continues to reflect instances of delay by RREPL in
servicing its scheduled interest payments. The delays are driven
by weak liquidity arising from low customer advances. The firm
also has weak financial risk profile because of strained
liquidity and the project is exposed to demand related risk and
timely receipt of customer advances. The firm, however benefits
from the extensive experience of promoters in the real estate
sector.
Key Rating Drivers & Detailed Description
Weaknesses
* Delay in servicing debt due to weak liquidity: RREPL has been
delaying in servicing of its interest payments because of weak
liquidity. Lower bookings and receipt of customer advances
constrained liquidity and hence RREPL has been delaying in
servicing its scheduled term loan installment.
* Exposure to timely receipt of customer advances: The project
has cost estimated at INR15 crore and about 90% of it is incurred
till May 31, 2018. Although, half of the project is booked, the
booking pace has been slow and receipt of customer advances have
been very low. Ramp-up in bookings and timely receipt of customer
advances remain critical to complete pending construction and to
repay debt obligations.
Strength
* Promoters' experience: The promoters have been in the real
estate business for past 16 years. Their experience and
established track record should continue to benefit the business.
RREPL, incorporated in 2013, is promoted by Mr. Mayank Agrawal,
Mrs Arti Agrawal and Ms Seema Yadav. It develops and sells
residential and commercial real estate projects. It is currently
redeveloping a commercial project in Lucknow, Uttar Pradesh.
RAVANI TIMBER: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated M/s Ravani
Timber Traders' Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR15 mil. Fund-based facilities migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER
NOT COOPERATING) rating; and
-- INR50 mil. Non-fund-based facilities migrated to Non-
Cooperating Category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 9, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1985, M/s Ravani Timber Traders is a
proprietorship firm owned and managed by Mr. Purushottam M Patel.
The firm is engaged in the trading of processed and raw timber,
particularly kwila.
RIA HOTELS: Ind-Ra Migrates 'B+' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ria Hotels
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR53.77 mil. Term loan due on June 2025 migrated to Non-
Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 29, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
RHPL was primarily established to operate hotels. RHPL owns an
81,209.002 square feet land at scheme 94-C, Ring Road, Indore,
which has been leased to M/s Bestech Hospitalities. A Radisson
hotel has been constructed on the leased land parcel.
RM DAIRY: CRISIL Migrates B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of RM Dairy
Products LLP (RMDP) to 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 14.9 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with RMDP for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 RM Dairy Products LLP. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
RM Dairy Products LLP is consistent with 'Scenario 2' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BBB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of RM Dairy Products LLP to 'CRISIL B+/Stable Issuer
not cooperating'.
RMDP was incorporated in April 2015 as a limited liability
partnership firm by eight partners -- Mr. Ram Vinod Singh, Ms
Radha Singh, Mr. Shishir Singh, Mr. Girish Goyal, Ms Suman Goyal,
Mr. Ravi Singhal, Ms Archana Singhal and Ms Shally Singh. The
firm is setting-up an integrated manufacturing plant in Aligarh,
Uttar Pradesh, with installed capacity of around 4 lakh litre per
day, to produce skimmed milk powder, desi ghee and poly pack
milk.
SARASWATI TRADING: Ind-Ra Maintains 'B' Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Saraswati
Trading Company's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR110 mil. Fund-based limit maintained in Non-Cooperating
Category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 24, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2010 in Punjab, Saraswati Trading Company is a
proprietorship firm engaged in the trading of rice and food
grains.
SATYAM ISPAT: CRISIL Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Satyam Ispat
(North East) Limited (SINEL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 0.5 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
Cash Credit 20.9 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
Letter of Credit 9.5 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
Proposed Term 9.2 CRISIL D (ISSUER NOT COOPERATING;
Loan Rating Migrated)
Working Capital
Term Loan 13.9 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
CRISIL has been consistently following up with SINEL for
obtaining information through letters and emails dated March 29,
2018 and April 19, 2018, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Satyam Ispat (North East)
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Satyam Ispat (North East) 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 Satyam Ispat (North East) Limited to 'CRISIL
D/CRISIL D Issuer not cooperating'.
SINEL, incorporated in 2005, is a part of Satyam Group of
Industries. It commenced commercial operations in April 2007, and
manufactures TMT bars and mild steel billets, which it sells
under Satyam Super TMT brand. The company has a semi-integrated
plant in Assam, with capacity to manufacture TMT and mild steel
billets.
SHANTI DEVI: CRISIL Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Shanti Devi
Charitable Trust (Regd.) (SDCT) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 13.5 CRISIL A4 (ISSUER NOT COOPERATING;
Rating Migrated)
Cash Credit 3.2 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 95.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SDCT for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Shanti Devi Charitable Trust
(Regd.). Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Shanti Devi Charitable Trust (Regd.) 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 Shanti Devi Charitable Trust (Regd.) to 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
SDCT, set up in 2006 and based in Panipat, manages a medical
college and 300-bed hospital, NC Medical College and Hospital.
SINDHUJAA RESIDENCY: CRISIL Moves B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Sindhujaa
Residency (SR) to 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Proposed Long Term 5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SR for obtaining
information through letters and emails dated March 29, 2018 and
April 30, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Sindhujaa Residency. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Sindhujaa Residency 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 Sindhujaa Residency to 'CRISIL B+/Stable Issuer not
cooperating'.
Set up in 2016 in Coimbatore as a partnership firm by Mr. J
Santhosh and Ms. Jothimani, SR is setting up five luxury hostels
in Coimbatore. Operations are managed by Mr. J Santhosh and Ms.
Jothimani.
SPIRIT INFRATECH: Ind-Ra Maintains 'D' Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Spirit
Infratech Private Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR125 mil. Term loan (Long-term) due on July 2021 maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 4, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in February 2007, Spirit Infratech is setting up a
four-star hotel (Park Plaza Amritsar Airport) and service
apartments (Blessings) in Amritsar, Punjab for which it has tied
up with Carlson Hotels Asia Pacific Pty Limited.
SRI RAMACHANDRA: CRISIL Migrates B+ Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Sri
Ramachandra Pooja Industries (SRPI) to 'CRISIL B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SRPI for obtaining
information through letters and emails dated April 26, 2018,
May 18, 2018 and May 23, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Sri Ramachandra Pooja
Industries. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Sri Ramachandra Pooja Industries is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Sri Ramachandra Pooja Industries to 'CRISIL
B+/Stable Issuer not cooperating'.
Set up in 1994 as a partnership between Mr. M Subba Rao and Mr.
Krishna Rao, SRPI mills and processes paddy into rice, rice bran,
broken rice, and husk.
SRI SATYANARAYANA: CRISIL Migrates B+ Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Sri
Satyanarayana Swamy Hatcharies (SSSH) to 'CRISIL B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Proposed Cash 2 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Term Loan 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SSSH for obtaining
information through letters and emails dated March 29, 2018 and
April 19, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Sri Satyanarayana Swamy
Hatcharies. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Sri Satyanarayana Swamy Hatcharies is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Sri Satyanarayana Swamy Hatcharies to 'CRISIL
B+/Stable Issuer not cooperating'.
Incorporated on September 12, 2016, Sri Satyanarayana Swamy
Hatcheries (SSSH) would be setting up a breeding farm for 52500
broiler parents along with feed mill. The Firm is promoted by Mr.
Errabelli Pradeep Kumar Rao who is currently regional chairman of
National Egg Co-ordination Committee.
SOUTH PARK: CRISIL Migrates B+ Rating to Not Cooperating Category
-----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of South Park
Motor Private Limited (SPMPL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Drop Line 10 CRISIL B+/Stable (ISSUER NOT
Overdraft Facility COOPERATING; Rating Migrated)
Electronic Dealer 15 CRISIL B+/Stable (ISSUER NOT
Financing Scheme COOPERATING; Rating Migrated)
(e-DFS)
CRISIL has been consistently following up with SPMPL for
obtaining information through letters and emails dated March 29,
2018 and April 19, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 South Park Motor Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on South Park Motor Private Limited is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of South Park Motor Private Limited to 'CRISIL
B+/Stable Issuer not cooperating'.
Incorporated in February 2016, SPMPL, promoted by the Mohandas
family, is a part of the South Park group and a dealer of MSIL
passenger vehicles in Thiruvananthapuram. It has been running one
showroom and workshop since October 2016.
SRIKARA PACKAGING: CRISIL Migrates D Rating to Not Cooperating
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Srikara
Packaging Private Limited (SPPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 4 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
Long Term Loan 5 CRISIL D (ISSUER NOT COOPERATING;
Rating Migrated)
CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated April 26, 2018,
May 14, 2018 and May 21, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 Srikara Packaging Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Srikara Packaging 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 Srikara Packaging Private Limited to 'CRISIL D
Issuer not cooperating'.
Set up in 2012, Srikara Packaging Private Limited (SPPL), is
engaged in manufacturing of polypropylene non-woven fabric. The
firm is based out of Madurai (Tamil Nadu) and is promoted by Mr.
V. Vairamuthu and his family members.
SUNBOND CERAMIC: CRISIL Reaffirms B+ Rating on INR3.5cr Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' rating on
the bank facilities of Sunbond Ceramic Private Limited (SCPL).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 1 CRISIL A4 (Reaffirmed)
Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.3 CRISIL B+/Stable (Reaffirmed)
Term Loan 2.2 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the extensive experience of SPL's
promoters in the ceramic industry, its moderate financial risk
profile and adequate liquidity. These strengths are partially
offset by exposure to intense competition and the modest scale of
and working capital-intensive operations.
Key Rating Drivers & Detailed Description
Strengths
* Extensive experience of the promoters: The promoters are having
a 2 decade experience in the ceramic tiles industry. Extensive
experience of promoters is expected to support the business in
the medium term.
* Moderate financial risk profile: Networth was healthy at
INR5.65 Crore as on March 31, 2018. With moderate profitability
and accretion to reserve, networth is expected to be at INR 6-6.5
Crore in the medium term. Capital structure is marked by total
outside liabilities to tangible networth and gearing of 2.55 and
1.14 times, respectively, as on March 31, 2018. Debt protection
metrics remain comfortable with interest cover of 3 times in
fiscal 2018.
Liquidity remains adequate with sufficient cash accrual to meet
repayment obligations.
Weakness
* Modest scale of operation: Scale of operations remain modest in
a highly competitive industry. There are many competitors in and
around the company in the same locality. Therefore, scale of
operations amid intensive competition remain a key monitor able
factor in the medium term.
* Working capital-intensive operations: Operations are expected
to remain working capital intensive over the medium term. Gross
current assets are high at above 300 days as on March 31, 2018 on
account of sizeable inventory and debtors of 132 days (raw
material and finished goods combined), and 183 days respectively.
Outlook: Stable
CRISIL believes that SCPL will benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if increase in revenue leads to substantial cash
accrual. The outlook may be revised to 'Negative' if decline in
cash accrual, or increase in working capital requirement or any
large debt-funded capital expenditure weakens financial risk
profile.
Incorporated in 2013, Morbi, Gujarat-based SCPL manufactures
digital wall tiles. Promoted by Mr. Bharat Saradva, Mr. Manoj
Kagathara, and their families, the company commenced commercial
production in April 2014.
TRIMURTHI HITECH: CRISIL Assigns B- Rating to INR4.75cr Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Trimurthi Hitech Company Private Limited
(THPL).
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Proposed Cash
Credit Limit 2.5 CRISIL B-/Stable (Assigned)
Bank Guarantee 2.75 CRISIL A4 (Assigned)
Cash Credit 4.75 CRISIL B-/Stable (Assigned)
The ratings reflect the company's modest scale of operations and
below-average financial risk profile. These weaknesses are
partially offset by the extensive experience of its promoters.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations in the intensely competitive
transformers segment: With estimated revenue of INR13 crore for
fiscal 2018, scale remains small in a fragmented industry, which
limits bargaining power with suppliers and customers and
restricts ability to exploit economies of scale available to
large players.
* Below-average financial risk profile: Networth is estimated to
be modest at INR4 crore as on March 31, 2018, on account of
limited accretion to reserves. Debt protection metrics were
subdued, reflected in interest coverage and net cash accrual to
total debt ratios of 1.1 times and 3%, respectively, for fiscal
2018.
Strength
* Extensive experience of promoters: THPL promoters have been in
the electrical industry for over two decades. Over the years, the
company has established a network of regular customers and
suppliers and has maintained healthy relationships with them,
which is reflected in repetitive orders for them.
Outlook: Stable
CRISIL believes THPL will continue to benefit from its promoters
extensive experience. The outlook may be revised to 'Positive' in
case of a significant and sustained increase in scale of
operations and profitability, better working capital management,
or improvement in capital structure either due to capital
infusion or higher-than-expected accrual. The outlook may be
revised to 'Negative' if financial risk profile, particularly
liquidity, weakens further because of larger-than-expected
working capital requirement or substantially low accrual on
account of decline in turnover or operating margin.
Incorporated in 1989 and promoted by Mr. BL Kabra and Mr. Sundeep
Kabra, THPL is engaged in overhead electrification and
commissioning of substation/switching station, cabling, and other
allied works for Southern Railway.
UNISEX AGENCIES: CRISIL Withdraws B+ Rating on INR10cr Cash Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Unisex
Agencies (UA) on the request of the company and after receiving
no objection certificate from the bank. The rating action is in-
line with CRISIL's policy on withdrawal of its rating on bank
loan facilities.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT COOPERATING;
Migrated from 'CRISIL A4'; Rating
Withdrawn)
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with UA for obtaining
information through letters and emails dated May 14, 2018 and
May 21, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
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 UA. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for UA
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of UA to
'CRISIL B+/Stable/CRISIL A4' Issuer not cooperating' from 'CRISIL
B+/Stable/CRISIL A4'.
CRISIL has withdrawn its rating on the bank facilities of UA on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Unisex was set up by Mr. Rohit Khanna as a proprietorship firm in
1994. It distributes products of brands such as Adidas, Jockey
sportswear, Pepe Jeans, Just for Kids, Fila, and Provogue in
Punjab, Haryana, Himachal Pradesh, and Jammu & Kashmir. The firm
also retails branded garments, and has 14 retail outlets in
Punjab.
WORLDTECH INDUSTRIES: CRISIL Assigns B- Rating to INR4.1cr Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Worldtech Industries Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan 4.1 CRISIL B-/Stable (Assigned)
Proposed Long Term
Bank Loan Facility .75 CRISIL B-/Stable (Assigned)
Bank Guarantee .30 CRISIL A4 (Assigned)
Cash Credit 2.00 CRISIL B-/Stable (Assigned)
The ratings reflect the company's average financial risk profile,
working capital-intensive operations, and exposure to risk
related to ramp up in operations. These weaknesses are partially
offset by the extensive experience and funding support of its
promoters.
Analytical Approach
For arriving at the ratings, unsecured loans of INR90 lakh as on
March 31, 2017, from promoters and their family have been treated
as neither debt nor equity as these are interest-free and are
expected to remain in business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Average financial risk profile: Gearing and total outside
liabilities to tangible networth ratio are estimated to be weak
at 5 times and 8 times, respectively, as on March 31, 2018, on
account of debt-funded capital expenditure (capex) of INR5.60
crore. Also, networth is estimated to be small at INR80 lakh.
* Working capital-intensive operations: Working capital
requirement is expected to be large, with expected gross current
assets of around 120 days due to receivables of 75 days.
* Stabilisation of capex: Unit to manufacture BOPP self-adhesive
tapes commenced operations from April 2018. Ramp up in scale will
remain a key rating sensitivity factor for the medium term.
Strengths
* Extensive experience and funding support of promoters: Presence
of about the decade in the packaging industry through other
entities has enabled the promoters to develop healthy
relationship with customers and suppliers. Promoters have also
extended financial aid to
* Funding support from promoters: WIPL financial risk profile is
supported through equity capital and unsecured loan infusion by
promoters showing their intent to support business.
Outlook: Stable
CRISIL believes that WIPL will continue to benefit from the
extensive experience of its promoters and their funding support.
The outlook may be revised to 'Positive' if higher-than-
anticipated revenue and profitability lead to a better financial
risk profile, while maintaining working capital cycle. The
outlook may be revised to 'Negative' if lower-than-expected
profitability and sales or any debt-funded capex further weakens
financial risk profile, especially liquidity.
Incorporated in 2010 and promoted by Mr. Mahesh Patel and Mr.
Ashok Patel, WIPL manufactures BOPP self-adhesive tapes at its
facility in Santej, Gujarat, which has capacity of 2628 tonne.
YOUNG BRAND: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Young Brand
Apparel Private Limited's (YBA) Long-Term Issuer Rating at 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR182.5 mil. (reduced from INR255.5 mil.) Term-loan due on
June 2024 issued on March 2007 affirmed with IND BB+/Stable
rating;
-- INR420 mil. (increased from INR354 mil.) Fund-based working
capital facilities affirmed with IND BB+/Stable rating; and
-- INR335.3 mil. (increased from INR328.3 mil.) Non-fund-based
working capital facilities affirmed with IND BB+/Stable/IND
A4+ rating.
KEY RATING DRIVERS
The affirmation reflects YBA's continued modest credit profile.
As per FY18 provisional financials, revenue marginally improved
to INR1,712 million (FY17: INR1,662 million) on account of an
increase in orders from existing and new customers. EBITDA margin
increased to 6.2% in FY18P (FY17: 5.7%) due to a decline in
variable cost. As of May 2018, the company had an order book of
INR1,250 million, to be executed by October 2018. As of May 2018,
it achieved revenue of INR300 million.
Net leverage (total Ind-Ra adjusted net debt/operating EBITDAR)
remained almost stable at 6.4x in FY18P (FY17: 6.3x). While,
interest coverage (operating EBITDA/gross interest expense)
improved to 3.0x in FY18P (FY17: 1.9x) owing to a decrease in
interest cost, resulting from the scheduled repayment of the
long-term loan.
However, the ratings benefit from the company's comfortable
liquidity position as indicated by 67.2% average use of the fund-
based working capital limits during the 12 months ended May 2018.
The ratings also remain supported by the promoters' a decade-long
experience in the textile industry.
RATING SENSITIVITIES
Positive: A sustained improvement in the operating profitability
leading to a sustained improvement in the credit metrics will be
positive for the ratings.
Negative: Any deterioration in the EBITDA margin leading to
deterioration in the credit metrics on a sustained basis will be
negative for the ratings.
COMPANY PROFILE
YBA, commenced production in 2010, is involved in the
manufacturing and exporting of undergarments and knitted apparel.
=========
J A P A N
=========
TOSHIBA CORP: Moody's Hikes CFR and Sr. Unsec. Debt Rating to B1
----------------------------------------------------------------
Moody's Japan K.K. has upgraded Toshiba Corporation's corporate
family rating and senior unsecured debt rating to B1 from Caa1,
and its subordinated debt rating to B3 from Ca.
The rating outlook is stable.
At the same time, Moody's has affirmed Toshiba's commercial paper
rating of Not Prime.
This rating action concludes the review for upgrade initiated on
May 18, 2018.
RATINGS RATIONALE
"The rating upgrade reflects the significant improvement in
Toshiba's liquidity and financial position following the sale of
its subsidiary, Toshiba Memory Corporation (TMC)," says Masako
Kuwahara, a Moody's Vice President and Senior Analyst.
"The sale of TMC has also made Toshiba's earnings more stable --
although greatly reduced -- given that the volatile memory
business represented 90% of consolidated operating profit in
fiscal 2017 before its reclassification as discontinued
operations," adds Kuwahara.
On June 1, 2018, Toshiba seems to have received about JPY1.45
trillion in net proceeds from the sale of TMC.
Furthermore, after consideration of the special JPY700 billion
share buyback policy announced on June 13, Moody's estimates that
Toshiba will achieve a net cash position of around JPY400 billion
by the end of the fiscal year ended March 2019 (fiscal 2018),
compared with a net debt position of JPY192 billion in fiscal
2017.
The TMC sale has also helped to recapitalize the company with a
gain of around JPY970 billion that will raise its shareholders'
equity ratio (shareholders' equity to total assets) ultimately to
around 30% by the end of fiscal 2018 -- including the impact of
the share buyback -- from 18% as of fiscal 2017.
In addition, the material improvement in its capital structure,
along with a much more stable business portfolio with limited
exposure to a market-sensitive business, has significantly
reduced the company's financial risk.
"In this regard, the stable outlook reflects the financial
flexibility afforded by the recapitalization of Toshiba's balance
sheet, following the sale, but it is tempered by the company's
lack of a track record in its new smaller, reorganized form; some
uncertainty over how it will use its cash; and our concern over
the sustainability of its remaining businesses," adds Kuwahara.
The remaining businesses have more earnings visibility, but
Moody's notes that they have weak profitability -- with operating
profit margins in the low-single digits -- and its business
portfolio is exposed to mature or declining markets.
Moreover, Moody's forecasts that Toshiba will be in a negative
free cash flow position (excluding the sale of TMC) at least over
the next 12 -- 18 months, because of the remaining businesses'
weak operating earnings despite their low capital requirements.
Moody's stable outlook is based on an assumption of operating
profit margin sustained at roughly 2%. As of fiscal 2017, the
margin was 1.6%.
The ratings could be upgraded if Toshiba can demonstrate a track
record of stability in earnings and cash flow, and if its ample
cash on hand is employed in a way that improves the company's
profitability through raising the competitiveness of its
businesses, or if its financial profile improves further through
additional debt reduction.
Toshiba could face downward rating pressure if it appears unable
to sustain the expected operating profit margin of around 2%; or
if the company adopts a more aggressive financial policy that
would weaken its financial profile.
The principal methodology used in these ratings was Global
Manufacturing Companies (Japanese) published in August 2017.
Toshiba Corporation, headquartered in Tokyo, is one of the
largest diversified electronics companies in Japan.
====================
N E W Z E A L A N D
====================
GENESIS ENERGY: S&P Assigns BB+ ICR on New NZ$240MM Securities
--------------------------------------------------------------
S&P Global Ratings said it has assigned its 'BB+' long-term issue
credit rating to the proposed subordinated capital securities, of
up to NZ$240 million, to be issued by Genesis Energy Ltd.
(BBB+/Stable/--). S&P has rated the capital securities two
notches below Genesis' stand-alone credit profile (SACP) of
'bbb', representing one notch each for the instrument's
subordination and optional deferral features. Genesis will use
proceeds from the issuance to redeem an equivalent amount of the
company's existing capital bonds and for general corporate
purposes.
The rating on the capital bonds is three notches below the issuer
credit rating of 'BBB+' on Genesis as the issuer rating on the
company includes one notch uplift from its SACP due to its status
as a government-owned entity. S&P rates the instrument based on
the issuer's SACP as it does not expect extraordinary government
support to benefit holders of hybrid instruments.
S&P assesses the equity content of the issuance to be
intermediate based on the following key features:
-- A 30-year term;
-- No call option for the first five years, except in limited
circumstances;
-- Optional deferral of coupon payments for up to five years;
-- No material step-up of the margin; and
-- The instrument's subordinated recovery position relative to
all senior unsecured creditors of the group, including
Genesis' bank debt, senior bonds, and U.S. private placement
notes.
S&P said, "Other key considerations in our assessment of the
intermediate equity content include Genesis' commitment to
maintain the capital bonds as part of its capital structure, as
evident from the intention to replace existing capital bonds with
the proposed issuance. If Genesis indicates any plan to deviate
from its replacement intention, we would revise our equity
content assessment to minimal on all the capital bonds issued by
Genesis and treat them as debt. In addition, we expect to revise
the equity content assessment on the capital securities to
minimal in July 2028, when the time to expected maturity would
fall below 20 years.
"Given the intermediate equity content classification, we will
treat 50% of the principal as equity and 50% of the coupon
payments as dividends when calculating our financial ratios for
the company."
T1 HOLDINGS: In Interim Liquidation as Worldclear Chases NZ$4MM
---------------------------------------------------------------
Christel Yardley at Stuff.co.nz reports that a Hamilton finance
company is chasing more than four million dollars from a former
employer who has since allegedly fled New Zealand.
Stuff relates that a High Court judge has ruled there was
"substantial support" for claims Richard Whitham transferred the
money to his personal bank accounts in May, granting former
employer WorldClear, a freezing order over Mr. Whitham's accounts
and that of his company T1, to protect their remaining funds.
While the order also places T1 Holdings Limited into interim
liquidation the freezing order expressly stated that it did not
affect anyone outside New Zealand, Stuff says.
According to the High Court Mr. Whitham was the sole director and
shareholder of T1, a firm set up to open bank accounts and
conduct financial transactions on behalf of Worldclear, Stuff
relays.
According to Stuff, Worldclear was set up in 2014 by Hamilton man
David Hillary to provide account, foreign exchange and payment
services. In August 2017, Mr. Hillary employed Mr. Whitham to
establish relationships with the banks. But that approach was
unsuccessful, so, in December 2017, Mr. Hillary come up with a
new approach. They formed T1, of which Mr. Whitham would
initially be sole director and shareholder. T1 would open bank
accounts and conduct financial transactions on behalf of
Worldclear. These later had a second person from Worldclear
appointed as signatory.
By May 17, there was NZ$4,611,535 in accounts operated by T1 when
Mr. Whitham said he had to leave work early to attend to a
domestic matter and did not expect to be back the following day,
Stuff discloses.
Stuff relates that Mr. Hillary asked Mr. Whitham to approve a
payment of US$1,199,500 and at 2:43 p.m. that day, Mr. Whitham
sent an email with an attachment purporting to show that the
payment was approved and was in "ASB processing" status. But Mr.
Hillary said the payee never received the funds.
The next day, Mr. Hillary sent Mr. Whitham a text message
advising him that Worldclear had two large foreign exchange
transactions to be processed that morning, Stuff relays.
Mr. Whitham replied saying that he was at the doctor and would
hopefully be back to his house soon.
Mr. Hillary then realised that his staff were unable to access T1
accounts at the ANZ, BNZ, and ASB banks that morning, and he
raised that by text with Mr. Whitham, Stuff relates.
Stuff says Mr. Whitham sent a text message back saying "that is
weird", and that he would check his own access to the accounts
when he got back from the doctor.
There were two further text messages from Mr. Hillary to Mr.
Whitham that morning, where Hillary said "we need to talk", and
"what is happening?".
Mr. Whitham did not reply, adds Stuff.
"We then called ANZ and asked to access the transaction
information, and were informed that [Mr Whitham] had ordered the
transfer of almost all of the available funds to his personal
account in ASB," Mr. Hillary, as cited by Stuff, said in his
evidence.
Mr. Hillary then visited the address he understood to be Mr.
Whitham's home address and was told the family had moved three
months earlier. Mr. Hillary then made a report to the police and
says he was told that Mr. Whitham had left the country.
On the same day, Mr. Hillary alleged that he found that
Worldclear's Dropbox folder had been accessed remotely from a
Singapore address and files relating to Mr. Whitham's employment
as well as folders relating to T1 bank accounts were being
deleted.
Mr. Hillary told the court he believed Mr. Whitham had left the
country and remaining funds in T1's accounts could be in
jeopardy, leading to the High Court freezing application.
Stuff relates that in his judgment, Associate Judge Warwick Smith
said the allegations by Worldclear had merit.
"Worldclear says that T1 was used as a vehicle for perpetrating a
fraud on it. It says that the principle perpetrator was its own
employee, and the only money involved appears to have been owned
by Worldclear," Stuff quotes Associate Judge Smith as saying.
"Worldclear's allegations appear to have substantial support in
the apparently abrupt departure of Mr. Whitham without any notice
to Worldclear, the instructions given by Mr. Whitham to the banks
to terminate access to T1 accounts by Worldclear employees, and
the apparent removal of Worldclear money from a T1 account with
the ANZ Bank to Mr. Whitham's personal account with the ASB
Bank."
Mr. Whitham and T1 were not represented in court, Stuff notes.
It is understood that Mr. Whitham is still overseas, the report
adds.
================
S R I L A N K A
================
BANK OF CEYLON: Moody's Assigns Ba3 Counterparty Risk Ratings
-------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
(CRRs) to Bank of Ceylon (BOC, B1, local currency deposit,
negative), Hatton National Bank Ltd. (HNB, B1 local currency
deposit, negative), and Sampath Bank PLC (Sampath, B1 local
currency deposit, negative).
Moody's Counterparty Risk Ratings are opinions of the ability of
entities to honour the uncollateralized portion of non-debt
counterparty financial liabilities (CRR liabilities) and also
reflect the expected financial losses in the event such
liabilities are not honoured. CRR liabilities typically relate to
transactions with unrelated parties. Examples of CRR liabilities
include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of
liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated
with covered bonds, letters of credit, guarantees, servicer and
trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.
RATINGS RATIONALE
The CRRs assigned to the three Sri Lankan banks are in line with
the Counterparty Risk Assessments (CR Assessment) already
assigned.
Because Moody's considers Sri Lanka not to have an operational
resolution regime, in assigning CRRs to the Sri Lankan banks
subject to this rating action, the rating agency applies its
basic Loss Given Failure (LGF) approach. Moody's basic LGF
analysis positions CRRs in line with the banks' CRAs, one notch
above their adjusted BCAs.
However, the CRRs for Sri Lankan banks do not incorporate further
uplift from government support, as Moody's basic LGF analysis
already positions the CRRs above the sovereign rating of B1.
OUTLOOK
CRR do not carry outlooks.
FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE
What Could Change the Rating Up/Down -- BOC
Given the negative outlook on the sovereign rating of Sri Lanka
(B1 negative), and that the local currency deposit ratings of BOC
are positioned at the same level as the sovereign an upgrade is
unlikely.
A downgrade of Sri Lanka's sovereign rating would result in a
downgrade of the local currency deposit ratings and BCA of BOC.
The bank's BCA could be downgraded if there was: (1) a material
deterioration in solvency factors, such as asset quality,
profitability, and capital; and/or (2) tighter liquidity and an
increased reliance on market funding.
What Could Change the Rating Up/Down -- HNB
Given the negative outlook on the sovereign rating of Sri Lanka
(B1 negative), and that the local currency deposit ratings of HNB
are positioned at the same level as the sovereign an upgrade is
unlikely.
A downgrade of Sri Lanka's sovereign rating would result in a
downgrade of the local currency deposit ratings and BCA of HNB.
The bank's BCA could be downgraded if there was: (1) a material
deterioration in solvency factors, such as asset quality,
profitability, and capital; and/or (2) tighter liquidity and an
increased reliance on market funding.
What Could Change the Rating Up/Down -- Sampath
Given the negative outlook on the sovereign rating of Sri Lanka
(B1 negative), and that the local currency deposit ratings of
Sampath are positioned at the same level as the sovereign an
upgrade is unlikely.
A downgrade of Sri Lanka's sovereign rating would result in a
downgrade of the local currency deposit rating and BCA of
Sampath. The bank's BCA could be downgraded if there was: (1) a
material deterioration in solvency factors, such as asset
quality, profitability, and capital; and/or (2) tighter liquidity
and an increased reliance on market funding.
LIST OF ASSIGNED RATINGS
Bank of Ceylon
Local and foreign currency long-term Counterparty Risk Ratings of
Ba3
Local and foreign currency short-term Counterparty Risk Ratings
of NP
Hatton National Bank Ltd.
Local and foreign currency long-term Counterparty Risk Ratings of
Ba3
Local and foreign currency short-term Counterparty Risk Ratings
of NP
Sampath Bank PLC
Local and foreign currency long-term Counterparty Risk Ratings of
Ba3
Local and foreign currency short-term Counterparty Risk Ratings
of NP
The principal methodology used in these ratings was Banks
published in June 2018.
=============
V I E T N A M
=============
AN BINH: Moody's Assigns B1 Long-Term Counterparty Risk ratings
---------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
(CRRs) to 16 rated banks in Vietnam.
The banks affected are: 1) An Binh Commercial Joint Stock Bank
(ABB), 2) Asia Commercial Bank (ACB), 3) Ho Chi Minh City
Development Joint Stock Commercial Bank (HDBank), 4) JSC Bank for
Foreign Trade of Vietnam (Vietcombank), 5) Joint Stock Commercial
Bank for Investment and Development of Vietnam (BIDV), 6) Lien
Viet Post Joint Stock Commercial Bank (Lien Viet), 7) Military
Commercial Joint Stock Bank (Military Bank), 8) Orient Commercial
Joint Stock Bank (OCB), 9) Saigon - Hanoi Commercial Joint Stock
Bank (SHB), 10) Saigon Thuong Tin Commercial Joint-Stock Bank
(Sacombank), 11) Tien Phong Commercial Joint Stock Bank (TPBank),
12) Vietnam International Bank (VIB), 13) Vietnam Joint-Stock
Commercial Bank for Industry and Trade (VietinBank), 14) Vietnam
Maritime Commercial Joint Stock Bank (MSB), 15) Vietnam
Prosperity Joint Stock Commercial Bank (VP Bank), and 16) Vietnam
Technological and Commercial Joint Stock Bank (Techcombank).
Moody's Counterparty Risk Ratings are opinions of the ability of
entities to honour the uncollateralized portion of non-debt
counterparty financial liabilities (CRR liabilities) and also
reflect the expected financial losses in the event such
liabilities are not honoured. CRR liabilities typically relate to
transactions with unrelated parties. Examples of CRR liabilities
include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of
liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated
with covered bonds, letters of credit, guarantees, servicer and
trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.
RATINGS RATIONALE
The CRRs assigned to the 16 rated Vietnamese banks are in line
with the Counterparty Risk Assessments (CRA) already assigned.
Because Moody's considers Vietnam not to have an operational
resolution regime, in assigning CRRs to the Vietnamese banks
subject to this rating action, the rating agency applies its
basic Loss Given Failure (LGF) approach. Moody's basic LGF
analysis positions CRRs in line with the banks' CRAs, one notch
above their adjusted BCAs, prior to government support.
Furthermore, the CRRs also incorporate between zero and one notch
of uplift due to Moody's assessment of government support for the
16 banks in times of need, based on the banks' systemic
importance to Vietnam. The uplifts are in line with that applied
to the CRAs.
OUTLOOK
CRRs do not carry outlooks.
FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE
ABB - WHAT COULD CHANGE THE RATING UP
Substantial improvements in asset quality and core capital
metrics will be positive for the BCA. If the sovereign rating of
Vietnam is upgraded, Moody's will consider upgrading the long-
term ratings of the bank by possibly incorporating some
government support uplift in the ratings.
ABB - WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded, if the bank's asset quality
deteriorates such that credit losses almost fully deplete its
loss absorbing buffers. A significant deterioration in its
liquidity metrics could also be negative for the ratings.
A large appetite for credit growth -- in particular, if the
growth is at levels materially higher than the system average --
could translate into downward rating actions, or a change in the
ratings outlook.
ACB - WHAT COULD CHANGE THE RATING UP
Moody's will consider upgrading the long-term ratings of ACB if
(1) Vietnam's sovereign rating is upgraded and (2) the bank posts
improved standalone credit metrics that lead to a higher BCA.
Moody's could upgrade ACB's BCA if the macroeconomic and
operating conditions for banks in Vietnam improve, leading to a
higher Macro Profile for the country.
ACB - WHAT COULD CHANGE THE RATING DOWN
Moody's could downgrade ACB's BCA and ratings if (1) the bank
demonstrates a material deterioration in its capital adequacy, or
(2) the operating environment deteriorates significantly, against
the backdrop of a loosening in the bank's underwriting practices,
thereby exposing it to asset-quality risks.
HDBANK - WHAT COULD CHANGE THE RATING UP
Moody's will consider raising HDBank's BCA if the bank's problem
loan ratio falls below 4% and its ratio of tangible common equity
to adjusted risk-weighted assets, or the TCE ratio, exceeds 10%.
An upgrade of the Macro Profile of Vietnam's banking system,
which is currently Weak, would also prove to be positive for
HDBank's BCA.
The long-term ratings could be upgraded if the bank's BCA is
raised or Vietnam's sovereign rating is upgraded.
HDBANK - WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if HDBank's (1) problem loan
ratio rises above 10%, or (2) TCE ratio drops significantly. The
ratings are also sensitive to a significant weakening in the
bank's liquidity profile.
The ratings could be downgraded if the government's rating is
lowered or if Vietnam's Macro Profile is revised downward.
VIETCOMBANK - WHAT COULD CHANGE THE RATING UP
Vietcombank's long-term ratings could be upgraded if Vietnam's
sovereign rating is upgraded.
VIETCOMBANK - WHAT COULD CHANGE THE RATING DOWN
Downward pressure on the BCA could develop as a result of (1) a
sharp deterioration in the bank's asset quality, and (2) credit
growth that significantly lowers its capital levels.
Weaker links with the government, such as a material decrease in
the State Bank of Vietnam's ownership stake in the bank, could
place downward pressure on the ratings.
BIDV - WHAT COULD CHANGE THE RATING UP
If the B1 rating on the Vietnam government is upgraded, Moody's
will likely upgrade the long-term ratings of BIDV, by
incorporating additional notches of government support uplift.
The following factors could result in an upward revision of
BIDV's BCA: (1) material improvements in asset quality and core
capital levels, and (2) significantly lower credit risk
concentration to individual borrowers and industry groups.
BIDV - WHAT COULD CHANGE THE RATING DOWN
BIDV's BCA and, consequently, its ratings could be downgraded if
(1) the operating environment weakens significantly or
underwriting practices become loose, resulting in a considerable
deterioration in the bank's asset quality; (2) there is a
significant deterioration in capitalization; or (3) Moody's
assesses that government support for BIDV has weakened.
LIEN VIET - WHAT COULD CHANGE THE RATING UP
Lien Viet's long-term ratings could be upgraded if Vietnam's
sovereign rating is upgraded.
The bank's BCA and long-term ratings could be upgraded if its
adjusted problem loan ratio declines to below 4% and its TCE
ratio exceeds 10%.
Loan diversification away from real estate and construction loans
would also be positive for the bank's BCA.
LIEN VIET - WHAT COULD CHANGE THE RATING DOWN
Lien Viet's long-term ratings could be downgraded if the bank's
adjusted problem loan ratio rises above 7% of its gross loans or
if its return on tangible assets drops below 0.7%.
The ratings are also sensitive to a significant weakening in the
bank's funding or liquidity profile.
MILITARY BANK - WHAT COULD CHANGE THE RATING UP
Moody's will consider upgrading Military Bank's long-term ratings
if (1) Vietnam's sovereign rating is upgraded, and (2) the bank
posts improved standalone credit metrics that lead to a higher
BCA.
Moody's could upgrade Military Bank's BCA if the macroeconomic
and operating conditions for banks in Vietnam improve, leading to
a higher Macro Profile for the country.
MILITARY BANK - WHAT COULD CHANGE THE RATING DOWN
Moody's could downgrade Military Bank's BCA and ratings if (1)
the bank demonstrates a material deterioration in its capital
adequacy, or (2) the operating environment deteriorates
significantly, against the backdrop of a loosening in the bank's
underwriting practices, thereby exposing it to asset-quality
risks.
OCB - WHAT COULD CHANGE THE RATING UP
Moody's will consider upgrading the BCA if the bank's adjusted
problem loan ratio falls below 4% and its TCE ratio exceeds 10%.
Loan diversification away from real estate and construction
loans, which Moody's considers as high risk in Vietnam, would
also be positive for the BCA. In addition, an improvement in
Vietnam's Weak Macro Profile would be BCA positive.
The B2 long-term ratings could be upgraded if both the following
conditions are met: the bank's BCA is upgraded and Vietnam's
sovereign rating is upgraded.
OCB - WHAT COULD CHANGE THE RATING DOWN
OCB's long-term ratings could be downgraded if its adjusted
problem loan ratio rises above 10% of gross loans, or if its TCE
ratio drops significantly below 7%. The ratings are also
sensitive to a significant weakening in the bank's liquidity.
SHB - WHAT COULD CHANGE THE RATING UP
Moody's will consider raising SHB's BCA if its financial results
demonstrate sustained improvement in asset quality and loss-
absorbing buffers, including loan-loss reserves and capital
buffers. A reform program that drives sustainable
recapitalization, greater transparency and more effective risk
management could also have positive rating implications for SHB.
Moreover, Moody's could upgrade the BCA if the macroeconomic and
operating conditions for banks in Vietnam improve, leading to a
higher Macro Profile for the country.
SHB - WHAT COULD CHANGE THE RATING DOWN
The bank's BCA could be downgraded as a result of a material
deterioration in its asset quality and capital adequacy levels.
The long-term ratings could be downgraded if there are signs that
necessary government support may not be forthcoming to restore
economic solvency.
SACOMBANK - WHAT COULD CHANGE THE RATING UP
The ratings could be upgraded if the bank materially improves its
solvency profile, by successfully repossessing and disposing of
collateral, including writing off large parts of its problem
assets. Sustainable improvements in the bank's liquidity profile
will also be positive for the rating. Furthermore, a substantial
core capital increase will be positive for the ratings.
However, Moody's see a low probability of the bank being
recapitalized.
SACOMBANK - WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the bank achieves only limited
success in cleaning its balance sheet through collateral
disposals in the next 12-18 months, or if its liquidity profile
deteriorates below its currently weak level.
TPBANK - WHAT COULD CHANGE THE RATING UP
Moody's will consider upgrading the BCA if both conditions are
met: the adjusted problem loans ratio decreases to below 4%, and
TCE ratio exceeds 10%. A material reduction in the market funds
ratio will also be positive for the BCA.
The B2 long-term ratings could be upgraded if both conditions are
met: BCA is upgraded and Vietnam's government ratings is
upgraded.
TPBANK - WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the problem loans ratio -- as
adjusted by Moody's -- increases in excess of 10% of gross loans,
or if the TCE ratio drops significantly. The ratings are also
sensitive to a significant weakening in the liquidity profile.
The rating could be downgraded if the government rating is
lowered, or if the Macro Profile on Vietnam is revised downwards.
VIB - WHAT COULD CHANGE THE RATING UP
Significant improvements in asset quality, coupled with a stable
TCE ratio, would be positive for the BCA and credit ratings.
Credit ratings could also be upgraded if the sovereign rating is
upgraded.
VIB - WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the bank's asset quality
deteriorates to such an extent that potential credit losses
almost fully deplete its loss-absorbing buffers. A significant
deterioration in capital and liquidity metrics will also be
negative for the rating.
VIETINBANK - WHAT COULD CHANGE THE RATING UP
Material improvements in asset quality and the TCE ratio will be
positive for the bank's BCA. The long-term ratings of VietinBank
could be upgraded if the sovereign rating is upgraded.
VIETINBANK - WHAT COULD CHANGE THE RATING DOWN
The BCA of the bank could be downgraded if there is a material
deterioration in its financial metrics, such as a weakening of
its asset quality or TCE ratio. The bank's long-term ratings will
come under downward pressure if there is a multi-notch downgrade
of the BCA, or if the assumptions for government support are
lowered.
MSB - WHAT COULD CHANGE THE RATING UP
A material reduction in problem assets, including the bank's
Vietnam Asset Management Company balance, could lead to upward
rating pressure. Improved profitability will also be positive for
the rating.
MSB - WHAT COULD CHANGE THE RATING DOWN
The rating could be downgraded or the outlook revised to stable
or negative if there is a further deterioration in asset quality
and a material depletion of the bank's capital buffers in the
medium term.
VP BANK - WHAT COULD CHANGE THE RATING UP
The long-term ratings could be upgraded if Vietnam's sovereign
rating is upgraded.
Moody's will also consider raising VP Bank's BCA and long-term
ratings if its financial results demonstrate sustained
improvements in asset quality and loss-absorbing buffers,
including loan-loss reserves and capital buffers.
Moreover, Moody's could upgrade the BCA of the bank if the
macroeconomic and operating conditions for banks in Vietnam
improve, leading to a higher Macro Profile for the country.
VP BANK - WHAT COULD CHANGE THE RATING DOWN
VP Bank's long-term ratings could be downgraded if the bank
pursues an overly aggressive expansion strategy that leads to a
loosening of underwriting practices, which then pose asset-
quality risks, or a material decline in capitalization.
TECHCOMBANK - WHAT COULD CHANGE THE RATING UP
Moody's will consider upgrading the bank's ratings if both
conditions are met: (1) the sovereign rating of Vietnam is
upgraded, and (2) the bank posts improved stand-alone credit
metrics that lead to a higher BCA. Moreover, the BCA of the bank
could be upgraded if the macroeconomic and operating conditions
for banks in Vietnam improve, leading to a higher Macro Profile.
TECHCOMBANK - WHAT COULD CHANGE THE RATING DOWN
The BCA and credit ratings could be downgraded in case of a
material deterioration in the bank's solvency and/or liquidity
metrics.
The principal methodology used in these ratings was Banks
published in June 2018.
LIST OF ASSIGNED RATINGS
An Binh Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Asia Commercial Bank
Local and foreign currency long-term Counterparty Risk ratings of
Ba3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Ho Chi Minh City Development Joint Stock Commercial Bank
Local and foreign currency long-term Counterparty Risk ratings of
B2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
JSC Bank for Foreign Trade of Vietnam
Local and foreign currency long-term Counterparty Risk ratings of
Ba3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Joint Stock Commercial Bank for Investment and Development of
Vietnam
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Lien Viet Post Joint Stock Commercial Bank
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Military Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
Ba3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Orient Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Saigon - Hanoi Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Saigon Thuong Tin Commercial Joint-Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Tien Phong Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Vietnam International Bank
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Vietnam Joint-Stock Commercial Bank for Industry and Trade
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Vietnam Maritime Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
B2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Vietnam Prosperity Joint Stock Commercial Bank
Local and foreign currency long-term Counterparty Risk ratings of
B1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
Vietnam Technological and Commercial Joint Stock Bank
Local and foreign currency long-term Counterparty Risk ratings of
Ba3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of Not Prime is assigned
An Binh Commercial Joint Stock Bank (ABB), headquartered in Ho
Chi Minh City, reported total assets of VND74,124 billion ($3.25
billion) as of March 31, 2018.
Asia Commercial Bank (ACB), headquartered in Ho Chi Minh City,
reported total assets of VND299,855 billion ($13.16 billion) as
of March 31, 2018.
Ho Chi Minh City Development Joint Stock Commercial Bank
(HDBank), headquartered in Ho Chi Minh City, reported total
assets of VND190,374 billion ($8.35 billion) as of March 31,
2018.
JSC Bank for Foreign Trade of Vietnam (Vietcombank),
headquartered in Hanoi, reported total assets of VND1,003,906
billion ($44.06 billion) as of March 31, 2018.
Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV), headquartered in Hanoi, reported total assets of
VND1,226,943 billion ($53.85 billion) as of March 31, 2018.
Lien Viet Post Joint Stock Commercial Bank (Lien Viet),
headquartered in Hanoi, reported total assets of VND169,797
billion ($7.45 billion) as of March 31, 2018.
Military Commercial Joint Stock Bank (Military Bank),
headquartered in Hanoi, reported total assets of VND316,345
billion ($13.88 billion) as of March 31, 2018.
Orient Commercial Joint Stock Bank (OCB), headquartered in Ho Chi
Minh City, reported total assets of VND84,300 billion ($3.72
billion) as of March 31, 2018.
Saigon - Hanoi Commercial Joint Stock Bank (SHB), headquartered
in Hanoi, reported total assets of VND 286,905 billion ($12.59
billion) as of March 31, 2018.
Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank),
headquartered in Ho Chi Minh City, reported total assets of
VND381,252 billion ($16.73 billion) as of March 31, 2018.
Tien Phong Commercial Joint Stock Bank (TPBank), headquartered in
Hanoi, reported total assets of VND 121,214 billion ($5.32
billion) as of March 31, 2018.
Vietnam International Bank (VIB), headquartered in Hanoi,
reported total assets of VND136,026 billion ($5.97 billion) as of
March 31, 2018.
Vietnam Joint-Stock Commercial Bank for Industry and Trade
(VietinBank), headquartered in Hanoi, reported total assets of
VND1,114,095 billion ($48.89 billion) as of March 31, 2018.
Vietnam Maritime Commercial Joint Stock Bank (MSB), headquartered
in Hanoi, reported total assets of VND116,109 billion ($5.10
billion) as of March 31, 2018.
Vietnam Prosperity Joint Stock Commercial Bank (VP Bank),
headquartered in Hanoi, reported total assets of VND284,388
billion ($12.48 billion) as of March 31, 2018.
Vietnam Technological and Commercial Joint Stock Bank
(Techcombank), headquartered in Hanoi, reported total assets of
VND273,153 billion ($11.99 billion) as of March 31, 2018.
*********
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 ***