/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180704.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, July 4, 2018, Vol. 21, No. 131 Headlines A U S T R A L I A ADFORM SHOPFITTING: First Creditors' Meeting Set for July 10 JUST ROOFING: First Creditors' Meeting Set for July 11 KENNETH BLACKLEY: Second Creditors' Meeting Set for July 11 PROMEQ PTY: First Creditors' Meeting Set for July 11 * Building Failures Hit West Australia for Up to AUD654MM C H I N A CHINA COMMERCIAL: Dismisses Marcum Bernstein as Accountants HNA GROUP: Deal to Buy Australian Logistics Biz Cancelled SHARING ECONOMY: Subsidiary Closes License Agreement with ECrent I N D I A A.G. MOTOR: CRISIL Migrates D Rating to Not Cooperating Category AASTHA COLD: CARE Migrates D Rating to Not Cooperating Category AL-SUPER FROZEN: CRISIL Migrates D Rating to Not Cooperating ANRAK ALUMINIUM: CARE Migrates D Rating to Not Cooperating ANUPAM INDUSTRIES: CARE Reaffirms D Rating on INR4.95cr Loan ATHENA ENERGY: Navayuga, Sikkim Submit Bid for Power Project BALA BALAJI: CRISIL Migrates D Rating to Not Cooperating BHUSAN FLOUR: CRISIL Assigns B+ Rating to INR7cr Term Loan BLS IMPEX: CRISIL Migrates B+ Rating to Not Cooperating Category COMSAT SYSTEMS: CRISIL Migrates B Rating to Not Cooperating EESAVYASA TECHNOLOGIES: Ind-Ra Affirms BB Rating, Outlook Stable FIBCOM INDIA: CRISIL Migrates B+ Rating to Not Cooperating G. V PRATAP: CRISIL Moves B+ Rating to Not Cooperating Category GARUDA INFRATECH: CRISIL Moves C Rating to Not Cooperating GAYATRI SPINNERS: CRISIL Migrates B Rating to Not Cooperating GURVINDER SINGH: CARE Moves B+ Rating to Not Cooperating Category JATSON POWER: CRISIL Migrates B+ Rating to Not Cooperating KAMINENI STEEL: CARE Moves D Rating to Not Cooperating Category KSHATRIYA LABORATORIES: CRISIL Moves B Rating to Not Cooperating M P AGARWALA: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ORBIT TECHNOLOGIES: Ind-Ra Migrates BB- Rating to Non-Cooperating P.M.P. TEXTILES: CARE Migrates D Rating to Not Cooperating PANASIAN CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating PARADISE POLYMERS: CARE Reaffirms D Rating on INR8.10cr Loan PHOOLTAS TRANSRAIL: CRISIL Hikes Rating on INR10.6cr Loan to B PITTI CASTINGS: Ind-Ra Affirms 'D' Issuer Rating, Outlook Stable PREMIER STEELS: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable PRINCE MARINE: CARE Reaffirms D Rating on INR5.50cr LT Loan PURE PETROCHEM: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable RAJ BORAX: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating RAMA AGRO: CARE Assigns B/A4 Rating to INR6cr Bank Facilities SANRHEA TECHNICAL: CARE Moves B Rating to Not Cooperating SARDAR INDUSTRIES: CRISIL Migrates B+ Rating to Not Cooperating SEASON RUBBERS: CRISIL Reaffirms B Rating on INR7cr Cash Loan SHIVDHAN BOARDS: CRISIL Withdraws B Rating on INR7.75cr Loan SHUBHAM INDUSTRIES: CRISIL Moves B+ Rating to Not Cooperating SRI SAI: CRISIL Migrates B- Rating to Not Cooperating Category STANLUBES & SPECIALITIES: CARE Reaffirms B- Long-Term Loan Rating STARWOOD TECHNO: CRISIL Lowers Rating on INR4.7cr Loan to D STERLING IMPEX: CRISIL Migrates B Rating to Not Cooperating UNIVERSAL TECHNOCAST: CARE Cuts Rating on INR5.92cr Loan to B+ VARDHINI INDUSTRIES: CRISIL Migrates B+ Rating to Not Cooperating VEE AAR: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable VIKAS PULSE: CRISIL Moves B+ Rating to Not Cooperating Category VISHAL CONDUIT: CARE Migrates B-/A4 Rating to Not Cooperating J A P A N MARUEI DEPARTMENT: Store Closes Doors After 403 Years M A L A Y S I A 1MDB: Task Force Freezes More Than 400 Bank Accounts 1MDB: Former Malaysian PM Najib Razak Arrested S I N G A P O R E CW ADVANCED: To Hold Informal Noteholders' Meeting on July 16 STRATECH GROUP: Creditors Reject Scheme of Arrangement T A I W A N HTC CORP: To Lay Off 1,500 Jobs in Taiwan - - - - - ================= A U S T R A L I A ================= ADFORM SHOPFITTING: First Creditors' Meeting Set for July 10 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Adform Shopfitting Pty Ltd will be held at the offices of PKF, Level 8, 1 O'Connell Street, in Sydney, NSW, on July 10, 2018, at 12:00 p.m. Bradley Tonks of PKF was appointed as administrator of Adform Shopfitting on June 28, 2018. JUST ROOFING: First Creditors' Meeting Set for July 11 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Just Roofing Sheet Metal Supplies Pty Ltd will be held at the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram Street, in West Perth, WA, on July 11, 2018, at 11:00 a.m. Kimberley Stuart Wallman of HLB Mann Judd (Insolvency WA) was appointed as administrator of Just Roofing on June 29, 2018. KENNETH BLACKLEY: Second Creditors' Meeting Set for July 11 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Kenneth Blackley Enterprises Pty Ltd, trading as Happy Cat Dry Cleaners, has been set for July 11, 2018, at 11:00 a.m. at the offices of Amos Insolvency, 25/ 185 Airds Road, in Leumeah, 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 July 10, 2018, at 4:00 p.m. Peter Andrew Amos of Amos Insolvenc was appointed as administrator of Kenneth Blackley on June 5, 2018. PROMEQ PTY: First Creditors' Meeting Set for July 11 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Promeq Pty Ltd will be held at the offices of SV Partners WA Pty Ltd, Ground Floor, Suite 7, 26 St Georges Terrace, in Perth, WA, on July 11, 2018, at 10:00 a.m. Malcolm Field of SV Partners was appointed as administrator of Promeq Pty on July 2, 2018. * Building Failures Hit West Australia for Up to AUD654MM --------------------------------------------------------- Helen Shield at The West Australian reports that West Australia is paying an astronomical price for construction industry insolvencies with a State Government discussion paper revealing that failing building companies cost the economy between $337 million and AUD654 million in 2016-17. And in 86.7 per cent of the WA construction industry insolvencies that year, unsecured creditors received none of the money they were owed, the report says. The West Australian relates that the brunt of the losses were borne by unsecured creditors who were owed AUD237.8 million to AUD505.5 million. According to the report, the figures are in a June 2018 Department of Mines, Industry Regulation and Safety discussion paper prepared for WA's Building Commission-backed industry working group, which is attempting to come up with a solution to the vexed issue of non-payment of subcontractors. The West Australian adds that the construction industry has the highest rate of insolvency of any industry segment in Australia. In WA, several high-profile insolvencies have highlighted the difficulties faced by subcontractors when a head or lead contractor becomes insolvent. Even when there is no insolvency, Subcontractors WA chairwoman Louise Stewart said late or non-payment is rife, the report relates. Although there has been a push to create project bank accounts to quarantine money for a specific project, these are not trust accounts and there are no rules to enforce proper use of the funds, the report states. According to the West Australian, Ms. Stewart said WA needed to amend the Construction Contracts Act immediately to introduce 10- day payment schedules that applied in other States. In 2016-17, WA's construction industry completed work worth AUD20.3 billion and 140,000 West Australians earned a living from the sector. In that year, the paper revealed, 218 construction companies became insolvent, with 18 of them creating "a shortfall of assets" of AUD10 million-plus each, the West Australian discloses. "It is possible to estimate that insolvencies in the WA construction industry cost the economy between AUD337.7 million and AUD654 million in the 2016-17 financial year," the discussion paper, as cited by the West Australian, said. "Any shortfall in assets in an insolvency is most keenly felt by unsecured creditors." The West Australian says the 218 insolvencies in 2016-17 left behind a trail of financial destruction, with unsecured creditor claims estimated to range from AUD237.8 million to AUD505.5 million. In the vast majority of cases -- 189 of the 218 -- creditors received nothing, the report notes. In only one insolvency did unsecured creditors get between 51 cents and AUD1 for each dollar owed. With that exception, the 10 per cent who salvaged anything got less than 11 cents in the dollar, adds The West Australian. ========= C H I N A ========= CHINA COMMERCIAL: Dismisses Marcum Bernstein as Accountants ----------------------------------------------------------- The Board of Directors of China Commercial Credit, Inc. has approved the dismissal of Marcum Bernstein and Pinchuk LLP as the Company's independent registered public accounting firm effective on June 26, 2018. For the fiscal years ended Dec. 31, 2017 and 2016, Marcum's audit reports on the Company's financial statements did not contain an adverse opinion or disclaimer of opinion, nor was it qualified as to audit scope or accounting principles, however Marcum's report on the Company's financial statements for the year ended Dec. 31, 2017 contained a provision concerning uncertainty as to the Company's ability to continue as a going concern. The financial statements did not include any adjustments that might have resulted from the outcome of this uncertainty. China Commercial said that during the fiscal years ended Dec. 31, 2017 and 2016 and any subsequent interim period through the date of dismissal, June 26, 2018, (i) there were no "disagreements" between the Company and Marcum on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to Marcum's satisfaction, would have caused Marcum to make reference in connection with Marcum's opinion to the subject matter of the disagreement; and (ii) except for the matter relating to internal control over financial reporting, there were no "reportable events" as the term is described in Item 304(a)(1)(v) of Regulation S-K. Marcum has communicated to the Company that the Company did not maintain effective internal controls over financial reporting. Specifically, (i) Certain personnel primarily responsible for the preparation of the Company's financial statements require additional requisite levels of knowledge, experience and training in the application of U.S. GAAP commensurate with its financial reporting requirements, (ii) The Company's internal control over financial reporting require additional supervision, (iii) The Company needs to further improve its allowance analysis system to timely respond to changing economic conditions and have additional qualified personnel to perform allowance analysis, and (iv) The Company needs to improve its system to better track the collection litigations. As disclosed in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2017, the Company expects to implement certain measures in 2018 to remediate material weaknesses identified in its internal control over financial reporting. On June 26, 2018, upon recommendation of the Audit Committee, the Board approved the appointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's independent registered public accounting firm to audit the Company's consolidated financial statements as of and for the fiscal year ending Dec. 31, 2018. The Company said that during the two most recent fiscal years and through June 26, 2018, the Company has not consulted with BDO regarding (1) any matter that was the subject of a disagreement or a reportable event described in Items 304(a)(1)(iv) or (v), respectively, or (2) any matter that was the subject of a disagreement or a reportable event described in Items 304(a)(1)(iv) or (v), respectively, of Regulation S-K. About China Commercial Credit Founded in 2008, China Commercial Credit -- http://www.chinacommercialcredit.com/-- is a financial services firm operating in China. Its mission is to fill the significant void in the market place by offering lending, financial guarantee and financial leasing products and services to a target market which has been significantly under-served by the traditional Chinese financial community. The Company's current operations consist of providing direct loans, loan guarantees and financial leasing services to small-to-medium sized businesses, farmers and individuals in the city of Wujiang, Jiangsu Province. China Commercial incurred a net loss of US$10.69 million for the year ended Dec. 31, 2017, compared to a net loss of US$2.58 million for the ended Dec. 31, 2016. As of March 31, 2018, China Commercial had US$7.31 million in total assets, US$11.76 million in total liabilities and a total shareholders' deficit of US$4.45 million. The report from the Company's independent accounting firm Marcum Bernstein & Pinchuk LLP on the consolidated financial statements for the year ended Dec. 31, 2017, includes an explanatory paragraph stating that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. HNA GROUP: Deal to Buy Australian Logistics Biz Cancelled --------------------------------------------------------- Reuters reports that China's debt-saddled HNA Group Co Ltd cancelled its AUD280 million ($207 million) purchase of an Australian logistics business on July 2, with the seller citing cashflow problems at the conglomerate among reasons for the deal's collapse. Reuters relates that HNA's unsolicited offer for Automotive Holdings Group Ltd's refrigerated trucking arm landed last November, at the tail end of the firm's $50 billion two-year acquisition spree and just as concerns about its financing costs began to surface. The unwinding of the offer, which included HNA assuming an additional A$120 million in debt on top of the purchase price, comes as those worries have intensified and as HNA has been offloading global assets to settle its debts, according to Reuters. "Unfortunately . . . HNA has run into liquidity problems which, combined with the delayed FIRB process, left the conditions precedent unable to be satisfied," Reuters quotes Managing Director John McConnell as saying in a statement, referring to Australia's Foreign Investment Review Board. Last week, AHG had said it was still in talks with HNA, including discussing an HNA request for funding support, but on July 2 Mr. McConnell said those talks had ended, Reuters notes. "They still need to sell it and there's no one like the Chinese to pay up for stuff, and it looks like they are off the market," Reuters quotes Mathan Somasundaram, portfolio strategist at stockbroker Blue Ocean Equities, as saying. Investors had hoped the proceeds would be reinvested in growth or returned to them via dividends or share buyback, he added. According to Reuters, the firm is unloading assets and shareholdings - having agreed to sell $10 billion in real estate this year, along with stakes in Deutsche Bank AG and Hilton Worldwide Holdings Inc. Capital control restrictions placed by Chinese regulators in recent years have also been weighing on HNA's deal activity, and it has faced push-back in several countries due to concerns about its murky ownership structure, Reuters states. Last year it was blocked from buying a car loan company in New Zealand, in part because the country's foreign investment regulator was worried about the conglomerate's financial stability. Regulatory delays also scuppered its plans to buy a stake in U.S. hedge fund Skybridge Capital LLC, adds Reuters. About HNA China-based HNA Group Co. Ltd. offers airlines services. The Company provides domestic and international aviation transportation, air travel, aviation maintenance, and aviation logistics services. HNA Group also operates holding, capital, tourism, logistics, and other business. Bloomberg News said HNA has been facing increasing pressure -- some banks are said to have frozen some unused credit lines to HNA units after they missed payments -- after a debt-fueled acquisition spree that left it with global assets ranging from hotels and refrigerated trucks to aviation and car rentals. SHARING ECONOMY: Subsidiary Closes License Agreement with ECrent ---------------------------------------------------------------- Sharing Economy Investment Limited, a wholly owned subsidiary of Sharing Economy International Inc., closed the license agreement with ECrent Capital Holdings Limited. In accordance with the terms of the Agreement, ECrent granted SEIL an exclusive license to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Cambodia, Japan, and Korea until June 30, 2019. In consideration for the license, the Company granted ECrent 250,000 shares of common stock, at an issue price of US$4.30 per share. The Consideration Shares will be reduced on a pro rata basis if there is a shortfall in the guaranteed revenue and/or profit. About Sharing Economy Headquartered in Jiangsu Province, China, Sharing Economy International Inc. -- http://www.seii.com/-- through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry. The Company's latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. Moreover, the Company will actively pursue blockchain technology in its existing and to-be-acquired business, enabling the general public to realize the beauty of resource sharing. RBSM LLP's audit opinion included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2017 contains a going concern explanatory paragraph stating that the Company had a loss from continuing operations for the year ended Dec. 31, 2017 and expects continuing future losses, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. RBSM has served as the Company's auditor since 2012. Sharing Economy incurred a net loss of $12.92 million in 2017 and a net loss of $11.67 million in 2016. As of March 31, 2018, the company had $76.73 million in total assets, $9.05 million in total liabilities and $67.67 million in total stockholders' equity. ========= I N D I A ========= A.G. MOTOR: CRISIL Migrates D Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of A.G. Motor (AGM) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.75 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Standby Line of Credit 0.75 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 2.70 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with AGM for obtaining information through letters and emails dated April 20, 2018, May 18, 2018, June 6, 2018 and June 11, 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 A.G. Motor. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on A.G. Motor 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 A.G. Motor to 'CRISIL D Issuer not cooperating'. AGM was established in 2009 as a proprietorship firm by Mr Mohan Singh Guleria. The firm is an authorised dealer in all two wheelers of Honda for Mandi. It has one 3S (sales-service-spares) showroom in the district. AASTHA COLD: CARE Migrates D Rating to Not Cooperating Category --------------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Aastha Cold Storage (ACS) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 7.90 CARE D; Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from ACS to monitor the ratings vide e-mail communications/letters dated April 23, 2018, April 26, 2018 and May 23, 2018 and numerous phone calls. However, despite CARE's repeated requests, the entity has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on Aastha Cold Storage bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating done on May 03, 2017, the following were the rating strengths and weaknesses: Delay in debt servicing: There is ongoing delay in debt servicing on the back of weak liquidity position. Deesa-based (Gujarat) Aastha Cold Storage (ACS) is a partnership firm engaged in the business of providing cold storage services. Established in the year 2013, ACS is operating from its plant located at Modasa-Gujarat. ACS has installed capacity of 5000 metric tonnes of storage capacity as on March 31, 2015. AL-SUPER FROZEN: CRISIL Migrates D Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Al-Super Frozen Foods Private Limited (ASFF) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 25 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with ASFF for obtaining information through letters and emails dated April 20, 2018, May 18, 2018, June 06, 2018 and June 11, 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 Al-Super Frozen Foods Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Al-Super Frozen Foods 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 Al-Super Frozen Foods Private Limited to 'CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. For arriving at the rating, CRISIL has taken a standalone approach for the assessment of ratings as ASFF is now bought by the promoters of Mirha Exports Pvt Ltd. Previously, ASFF used to be part of the Al Nafees group and CRISIL had taken a consolidated approach with its other group entities (mainly Al Nafees Frozen Foods Pvt Ltd). ASFF, promoted by Mirha Exports Pvt Ltd, processes and exports buffalo meat. Its plant in Unnao (Uttar Pradesh) has capacity to process 600 animals daily. ANRAK ALUMINIUM: CARE Migrates D Rating to Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Anrak Aluminium Limited to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 2,995.00 CARE D; ISSUER NOT COOPERATING; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from Anrak Aluminium Limited to monitor the rating vide letter dated September 21, 2016 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Anrak Aluminium Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. The ratings take into account delays in debt servicing on account of stretched liquidity position of the company. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on March 3, 2017 the following were the rating weaknesses and strengths: Key Rating Weaknesses Delays in debt servicing on account of stretched liquidity position at the back of delay in commencement of operations: There are delays in servicing of debt obligations by AAL. Due to non-availability raw material, AAL has not been able to commence operations in alumina refinery. AAL's inability to generate requisite cash accruals from its power plant operations considering high debt obligations has led to delays in debt servicing. ANRAK Aluminium Limited promoted by Penna Group along with Ras Al Khaimah Investment Authority (RAKIA-Investment Body of Government of Ras Al Khaimah) in 2007 to set up a 1.5 million tons per annum (MTPA) Alumina refinery along with 3*75 (225 MW) coal based co- generation power plant at Vishakhapatnam. ANUPAM INDUSTRIES: CARE Reaffirms D Rating on INR4.95cr Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Anupam Industries (AI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 1.68 CARE D; ISSUER NOT COOPERATING Facilities Reaffirmed Long-term/Short- 4.95 CARE D; ISSUER NOT COOPERATING Term Bank Reaffirmed Facilities Detailed Rationale & Key Rating Drivers CARE has been seeking information from AI to monitor the rating(s) vide e-mail communications/ letters dated April 30, 2018, May 3, 2018, May 8, 2018 and numerous phone calls. However, despite CARE's repeated requests, AI has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines CARE's has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on AI's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). At the time of last rating on March 07, 2017 the following were the rating weaknesses: Detailed description of the key rating drivers Key rating weaknesses: As per banker interaction, there have been ongoing delays in debt servicing and account has been classified as NPA. Established in April 2010 as a partnership firm, Anupam Industries (AI) was formed by Mr. Anil Kumar Arora, Mr. Ravindra Singh Arora and Mr. Amit Wadhwa. The firm has set up a manufacturing plant in Daman to manufacture mild steel (MS) ingots which commenced operations in November 2012 with installed acapacity of 21,600 tons per annum. AI is established under the Spiderman group of companies engaged in manufacture of MS Ingots with its plants in Daman. The firm procures its raw materials i.e. iron, steel scrap and sponge iron along with ferro & silico manganese from domestic market. The final product (MS Ingots) is supplied to the steel manufactures and rolling mills in the domestic markets through distributors. ATHENA ENERGY: Navayuga, Sikkim Submit Bid for Power Project ------------------------------------------------------------ The Economic Times reports that Krishnapatnam port operator Navayuga Engineering and state-run Sikkim Power Investment Corporation have submitted binding bids for the INR15,000-crore planned hydro power project in Arunachal Pradesh that is undergoing insolvency proceedings. The 1,750-mw project awarded by the Arunachal government to Athena Energy Ventures on a 40- year concession has been stalled due to incomplete forest clearances and insufficient funds, the report says. Athena Energy owes Rs 550 crore to Indian Bank and Corporation Bank as working capital dues that the lenders were unable to recover from the former, according to the report. ET relates that Navayuga's bid is pegged at Rs 300 crore, said sources directly briefed on the matter. Sikkim Power Investment Corporation, the first state-run utility to participate in bidding for a bankrupt company, has offered a little over INR250 crore, these sources said, the report relays. Umesh Garg, the insolvency professional tasked with arriving at a resolution for the stressed power project, declined to offer comment for this news report, ET notes. Though Navayuga's bid is said to be higher, the committee of creditors has disqualified its bid on the grounds that it violates provisions of Section 29 A of the insolvency and bankruptcy code which disallows people connected to defaulting promoters/companies from bidding for the stressed assets, according to ET. ET says the port operator has challenged the decision at the National Company Law Tribunal (NCLT). Athena Energy Ventures Private Limited invests, develops, and operates hydropower and thermal power generation projects. BALA BALAJI: CRISIL Migrates D Rating to Not Cooperating -------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Bala Balaji Srinivasa Poultries (BBSP) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1.23 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term Bank Loan Facility .50 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with BBSP for obtaining information through letters and emails dated April 20, 2018, May 18, 2018, June 7, 2018 and June 11, 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 Bala Balaji Srinivasa Poultries. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bala Balaji Srinivasa Poultries 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 Bala Balaji Srinivasa Poultries to 'CRISIL D Issuer not cooperating'. Set-up in 1989 by Mr Gannamani Sree Ramarao, BBSP is engaged in hatchery business and has capacity to breed 2 lakh layering birds. BHUSAN FLOUR: CRISIL Assigns B+ Rating to INR7cr Term Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Bhusan Flour Mills Private Limited (BFMPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 7 CRISIL B+/Stable (Assigned) Cash Credit 2.1 CRISIL B+/Stable (Assigned) Proposed Bank Guarantee 3 CRISIL A4 (Assigned) The ratings reflect working capital-intensive operations and weak financial risk profile because of small networth and moderate debt protection metrics. These weaknesses are partially offset by quick scale up of operations. Key Rating Drivers & Detailed Description Weaknesses * Large working capital requirement: Gross current assets are estimated at 150 days as on March 31, 2018, due to large inventory of 69 days and moderate receivables of 33 days. * Weak financial risk profile: Networth was estimated at a negative INR10 lakh while gearing was high at -108.92 times, as on March 31, 2018. High debt levels and modest profitability resulted in subdued debt protection metrics, with estimated interest coverage and net cash accrual to total debt ratios of 1.5 times and 0.03 time, respectively, for fiscal 2018. Strengths * Quick ramp up of scale of operations: Despite operations beginning from September 2017, the company was able to ramp up its scale to INR8.7 crore in fiscal 2018. Moreover, with registration with the Food Corporation of India, revenue is likely to improve further over the medium term. Outlook: Stable CRISIL believes BFMPL will benefit from its promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if higher revenue growth, while maintaining profitability, leads to better cash accrual. The outlook may be revised to 'Negative' if financial risk profile, particularly capital structure and liquidity, weakens further due to weak cash accrual following lower-than-expected sales or profitability, or stretch in working capital cycle. Incorporated in 2013 and promoted Mr Ashok Ghosh, Mr Tapan Ghosh, and Mr Subhadip Ghosh, BFMPL processes wheat into atta, maida, sooji, and bran. Unit has capacity of 120 tonne per day. BLS IMPEX: CRISIL Migrates B+ Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Bls Impex Private Limited (BIPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with BIPL for obtaining information through letters and emails dated May 25, 2018, June 7, 2018 and June 11, 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 Bls Impex Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bls Impex 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 Bls Impex Private Limited to 'CRISIL B+/Stable Issuer not cooperating'. Established as a private limited company in 2011 and based in Hyderabad (Telangana), BIPL is a trader and exporter of rice (basmati/non-basmati). It is promoted by Mr G Shekhar, Mr R Srinivas and others. COMSAT SYSTEMS: CRISIL Migrates B Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Comsat Systems Private Limited (CSPL) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 8.5 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with CSPL for obtaining information through letters and emails dated April 23, 2018, May 8, 2018, June 7, 2018 and June 11, 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 Comsat Systems Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Comsat Systems 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 Comsat Systems Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Set up in 1982 in Hyderabad by Mr. S John and his family members, CSPL manufactures antenna for satellite communication and other antenna in UHF/VHF frequencies. EESAVYASA TECHNOLOGIES: Ind-Ra Affirms BB Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Eesavyasa Technologies Private Limited's (ETPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR100 mil. (increased from INR30 mil.) Fund-based working capital limits affirmed with IND BB/Stable/IND A4+ rating; -- INR40 mil. (increased from INR30 mil.) Non-fund-based working capital limits affirmed with IND A4+ rating; -- INR80 mil. Proposed fund-based limits* assigned with Provisional IND BB/Stable/Provisional IND A4+ rating; and -- INR50 mil. Proposed non-fund-based limits* assigned with Provisional IND A4+ rating; * The ratings are provisional and shall be confirmed upon the sanction and execution of loan documents for the above facilities by ETPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The affirmation reflects continued small scale of operations of ETPL, though revenue increased 43.9% yoy to INR444 million in FY18, driven by the execution of more orders. Ind-Ra expects further revenue growth, considering ETPL had an order book of INR995.91 million (2.24x of FY18 revenue) as of June 2017. FY18 financials are provisional. The ratings are constrained by ETPL's modest credit metrics. Its net leverage deteriorated to 3.6x in FY18 from 2.1x in FY17 due to an increase in debt to INR159 million from INR56 million, as ETPL enhanced its working capital borrowings. Meanwhile, despite a rise in interests costs, ETPL's interest coverage improved to 3.1x in FY18 from 2.8x in FY17 on account of an increase in absolute EBITDA to INR41 million from INR25 million. The ratings are further constrained by ETPL's tight liquidity, indicated by nearly full utilization of the fund-based limits during the 12 months ended May 2018, owing to the working capital-intensive nature of operations. Its net cash conversion cycle was elongated at 157 days in FY18 (FY17: 81 days). The deterioration in the cycle was owing to a rise in inventory days to 151 days from 101 days. The ratings, however, are supported by a rise in ETPL's EBITDA margin to 9.2% in FY18 from 8.1% in FY17, primarily due to ETPL's use of newly developed technology to execute projects and better absorption of fixed costs. RATING SENSITIVITIES Negative: Any decline in the EBITDA margin or any further elongation of the net cash conversion cycle, leading to any deterioration in the credit metrics, 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 lead to a positive rating action. COMPANY PROFILE Hyderabad-based ETPL is engaged in the design, development and implementation of water treatment (effluent and drinking water projects) and nanotechnology solutions. ETPL's business lines are research and development, consultancy, project execution and manufacturing. FIBCOM INDIA: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Fibcom India Limited (FIL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 42 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 49.44 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Foreign Exchange Forward 20 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Inland/Import Letter of Credit 38 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Letter of credit & Bank Guarantee 10 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Packing Credit 1.75 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 15.31 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with FIL for obtaining information through letters and emails dated April 23, 2018, May 8, 2018, June 6, 2018 and June 11, 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 Fibcom India Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Fibcom India 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 Fibcom India Limited to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. FIL is part of the Lalit Suri group (promoters of Subros Ltd and Bharat Hotels Ltd). It manufactures telecom networking equipment, especially transmission equipment such as synchronous digital hierarchy and dense wavelength division multiplexing; the company is also an integrated solution provider covering optimised turnkey network solutions, infrastructure development, and project management. G. V PRATAP: CRISIL Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of G. V Pratap Reddy (GVPR) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter of credit 4 CRISIL A4 (ISSUER NOT & Bank Guarantee COOPERATING; Rating Migrated) Proposed Long Term 4 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with GVPR for obtaining information through letters and emails dated April 24, 2018, June 7, 2018 and June 11, 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 G. V Pratap Reddy. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on G. V Pratap Reddy 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 G. V Pratap Reddy to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Established in 1985, G.V Pratap Reddy (GVPR) is a Hyderabad based proprietorship firm engaged in the business of civil construction. The firm is promoted by Mr. G.V. Pratap Reddy GARUDA INFRATECH: CRISIL Moves C Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Garuda Infratech India Private Limited (GIIPL) to 'CRISIL C/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 6 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 17 CRISIL C (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with GIIPL for obtaining information through letters and emails dated April 24, 2018, May 8, 2018, June 7, 2018 and June 11, 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 Garuda Infratech India Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Garuda Infratech India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Garuda Infratech India Private Limited to 'CRISIL C/CRISIL A4 Issuer not cooperating'. Incorporated in 2010 and based in Hyderabad (Andhra Pradesh), GIIPL undertakes civil construction work for residential projects. It is promoted by Mr Sreenivas Babu Kode, Mr Ancha Chittaranjan, Mr Satya Lakshmi Narayana Gottipati, Mr Raju Venkata Manthena, and Mr Satya Sekhar Boppanna. GAYATRI SPINNERS: CRISIL Migrates B Rating to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Gayatri Spinners Limited (GSL) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter of credit & Bank Guarantee 1.4 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1.23 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term Bank Loan Facility .37 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with GSL for obtaining information through letters and emails dated April 23, 2018, May 8, 2018, June 7, 2018 and June 11, 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 Gayatri Spinners Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Gayatri Spinners 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 Gayatri Spinners Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Established in 1997, GSL is a closely-held public limited company, Bhilwara (Rajasthan) based, promoted by Mr Babu Lal Kogta and Mr Manish Kogta. It manufactures fertilisers like single super phosphate. GURVINDER SINGH: CARE Moves B+ Rating to Not Cooperating Category ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Gurvinder Singh to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 2.00 CARE B+; Issuer not cooperating; Facilities Based on best available information Short term Bank 4.30 CARE A4; Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from Gurvinder Singh to monitor the rating(s) vide e-mail communications/letters dated May 28, 2018 and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on Gurvinder Singhs's bank facilities will now be denoted as CARE B+/ CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of rating in October, 2015 the following were the rating strengths and weaknesses: Key rating Weaknesses Small scale of operations with low net worth base: The firm's scale of operations has remained low marked by TOI of INR7.78 crore for FY15 (Prov., FY refers to April 1 to March 31) and tangible net worth of INR0.60crore as on March 31, 2015(Prov.). Weak financial risk profile: The profitability margins of GVS remained low reflected by PBILDT margin and PAT margin of 3.01% and 1.86% in FY15(Prov.). The firm had leveraged capital structure reflected by overall gearing ratio of 4.78x as on March 31, 2015, (Prov.). The debt coverage indicators remained weak marked by interest coverage ratio and total debt to GCA of 2.72x and 19.36x for FY15 (Prov.) respectively. Customer concentration risk: The firm has only one customer on which it is wholly dependent for its business thereby exposing it to customer concentration risk. Proprietorship nature of its constitution: GVS's constitution as a proprietorship firm has the inherent risk of possibility of withdrawal of the proprietor's capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of proprietor. Highly unorganized industry and intense competition: GVS operates in a highly fragmented and unorganized sector with the presence of numerous small and regional players. Hence, the players in the industry do not have any pricing power and are exposed to competition induced pressures on profitability. Key Rating Strengths Experienced proprietor: Mr. Gurvinder Singh has an experience of around two and half decades as transport contactor and has long term relationships with FCI through his association with GVS and Garchs Transport Union (business operations are discontinued as of now). Comfortable operating cycle: The firm has comfortable operating cycle of (-)65 days as on March 31, 2015. M/s Gurvinder Singh (GVS) is a proprietorship firm established in 2008 by Mr. GurvinderSingh (aged 47 years). The firm is engaged in providing services as transport contractor to Food Corporation of India (FCI) for the transportation of food grains from one centre of FCI to anther centre of FCI in different districts of Himachal Pradesh and Punjab. The firm gets contract through competitive bidding process (tender basis) and hires the truck from the transport companies for the movement of food grains. JATSON POWER: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Jatson Power Private Limited (JPPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.25 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 4.02 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 0.12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with JPPL for obtaining information through letters and emails dated April 24, 2018, May 9, 2018, June 6, 2018 and June 11, 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 Jatson Power Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Jatson Power 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 Jatson Power Private Limited to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. JPPL was set up in 2004. The company undertakes turnkey projects for electrical installations such as switchyards; it also manufactures low-voltage electric panels. KAMINENI STEEL: CARE Moves D Rating to Not Cooperating Category --------------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Kamineni Steel & Power India Private Limited (KSP) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 1777.91 CARE D; Issuer not cooperating Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from KSP to monitor the ratings vide e-mail communication dated December 15, 2016, December 19, 2017, February 16, 2017, February 21, 2017, May 30, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Kamineni Steel & Power India Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. The ratings take into account the delays in debt servicing on account of stressed liquidity position. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed description of the key rating drivers At the time of last rating on March 10, 2017 the following were the rating strengths and weaknesses updated for the information available from Registrar of Companies. Key Rating weakness Stressed liquidity position and subdued industry demand leading to delays in debt servicing: The company has been incurring huge net losses and has negative cash accruals for the last three years ended March 31, 2017 due to subdued steel industry scenario on account of cheap imports of steel in domestic market. Furthermore, losses have led to significant erosion in the net worth of the company. The company had approached lenders for restructuring of debt however the company failed to receive the mandatory 75% of vote share by lenders in favor of resolution plan, a pre-requite according to the Insolvency and Bankruptcy code to get the plan endorsed by the bankruptcy court. Currently, the same is under process with National Company Law Appellate Tribunal (NCLT). Key rating strengths Experienced and resourceful promoters: KSP has experienced board of directors who earlier were in the business of steel manufacturing and trading. Mr Kamineni Suryanarayana, Chairman of the company, has about four decades of experience in the steel manufacturing and marketing businesses. Mr Kamineni Sashidhar, the Managing Director, has about two decades of experience in the health care industry. Mrs Kamineni Indira and Mr Sridhar Kamineni are the other two directors who have about a decade of experience as entrepreneurs. Kamineni Steel and Power India Private Limited (KSP) is a part of Hyderabad-based Kamineni group which has presence in steel pipes, healthcare and education sectors. KSP has set up a 360,000 MT round billet manufacturing plant at Narketpally, Nalgonda district, Andhra Pradesh. The plant is adjacent to its group companies namely Oil Country Tubular Limited and United Seamless Tubular Private Limited. KSP was promoted as a backward integration of the group and will be supplying billets to USTPL, which has capacity of 300,000 MT and also to USAI Forge (group's forging unit). The company has reported a net loss of INR221.02 crore during FY17 on total operating income of INR5.93 crore. KSHATRIYA LABORATORIES: CRISIL Moves B Rating to Not Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Kshatriya Laboratories Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter of Credit 2.5 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 9.0 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with KLP for obtaining information through letters and emails dated April 24, 2018, May 9, 2018, June 7, 2018 and June 11, 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 Kshatriya 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 Kshatriya 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 facilities of Kshatriya Laboratories Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Hyderabad based KLP, incorporated in 2012 as a private limited company manufactures drug intermediates and bulk drugs. The company is promoted by Mr. D. Jagannadha Raju, Ch V G Krishnam Raju, Ch Subba raju and family. M P AGARWALA: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M P Agarwala's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR70 mil. Fund-based facilities migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) /IND A4+ rating; and -- INR110 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 14, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE M P Agarwala is a proprietorship firm founded by Mr. Mahabir Prasad Agarwala. The firm undertakes the construction of buildings, roads and bridges for the public works departments of Assam and Meghalaya. ORBIT TECHNOLOGIES: Ind-Ra Migrates BB- Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Orbit Technologies Pvt Ltd.'s Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR27.50 mil. Fund-based working capital limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR2.50 mil. Term loans due on March 2018 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR35 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 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 in 1988 by Venkat Prasad, Orbit Technologies supplies, installs, commissions and services chemical lab analysis and monitoring instruments sourced from its overseas business associates. It also undertakes supply and commissioning of chemical lab instruments used for water, soil coal and oil analyses, along with other chemicals and glassware. P.M.P. TEXTILES: CARE Migrates D Rating to Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of P.M.P. Textiles Spinning Mills Private Limited (PMP) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 7.90 CARE D; Issuer not cooperating; Facilities Based on best available information. Long term/Short- 6.50 CARE D/CARE D; Issuer not Term Bank cooperating; Based on best Facilities available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from PMP to monitor the rating vide e-mail communications/ letters dated April 25, 2018, May 10, 2018, May 18,2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the rating. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of publicly available information which however, in CARE's opinion is not sufficient to arrive at fair rating. The rating on P.M.P. Textiles Spinning Mills Private Limited's bank facilities will now be denoted as CARE D; Issuer not Cooperating/CARE D; Issuer not cooperating; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on March 31, 2017 the following were the rating strengths and weaknesses: Key Rating weakness Delay in debt servicing: The company has delays in servicing of debt obligations owing to the stretched liquidity position of the company. Financial risk profile characterized by net losses: PMP's financial profile is characterized by lower levels of profitability. The company had incurred a loss of INR 2.16 crore in FY 17 due to less sales realization of INR 1.08 crore. Highly competitive industry due to fragmentation: PMP operates in the textile industry, with large number of organized and unorganized players. This competitive nature of the industry segment restricts pricing flexibility, entailing thin operating margins for the companies present within this segment. Moreover, due to high degree of fragmentation, small players hold very low bargaining power against both its customers as well as its suppliers resulting in such companies operating at very thin profit margins. Key rating strengths Experience of the promoters: PMP is promoted by Mr Muthuswamy who has been into manufacturing and trading of cotton yarn since 1988. His vast experience and presence in this line of business has been instrumental in creating long-standing relationships with customers and vendors. PMP incorporated in November 1988 is engaged in manufacturing of yarn and has its spinning unit in Dharmapuri, Tamil Nadu. The unit has a total capacity of 39,500 spindles and it manufactures combed and carded ring spun cotton yarns for weaving and knitting. The company produces higher count yarn (80s). The company is managed by Mr P. Muthuswamy, the Managing Director, who has more than three decades of experience in the business. In FY17, PMP had a net loss of INR 2.16 crore on a total operating income of INR 1.08 crore, as against net loss and TOI of INR5.53 crore and INR30.21 crore respectively, in FY16. PANASIAN CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Panasian Construction Company Private Limited (PCCPL) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 1.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 16.0 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with PCCPL for obtaining information through letters and emails dated April 24, 2018, May 18, 2018, June 6, 2018 and June 11, 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 Panasian Construction Company Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Panasian Construction Company 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 Panasian Construction Company Private Limited to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 2010, PCCPL executes construction activities in New Delhi. The company is promoted by Mr. Rakesh Bhagat and his wife Mrs. Indu Bhagat. PARADISE POLYMERS: CARE Reaffirms D Rating on INR8.10cr Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Paradise Polymers Limited (PPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.10 CARE D; Reaffirmed; Facilities Issuer not cooperating; Based on best available Information Long-term/Short- 2.00 CARE D/CARE D; Reaffirmed; Term Bank Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from PPL to monitor the ratings vide e-mail communications/letters dated April 30, 2018, May 30, 2018, May 31, 2018, June 2, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on PPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers Key Rating Weakness Delays in debt servicing: As per the interaction with the banker, the CC remained overdrawn for more than 30 days as on May 8, 2018. Moreover, 15 LCs totaling to INR1.68 crore remained devolved for more than 30 days as on the same date. Incorporated in 1988 by Mr. Randhirsingh Patil, PPL is engaged in manufacturing of various flexible packaging material, viz., PVC lamination, PVC confectionery films, PVC cling films and reprocessed rim, finding application in packaging vegetables, fruits, various food stuffs, frozen products, candies, sweets & confectioneries, etc. PVC lamination films are sold under the brand "Paradise", whereas PVC cling films are sold through its associate concerns namely Simor-Tech Polymers Limited under the brand "Tazza" and Solanki Polymers Private Limited under the brand "Oxiwrap". The rest of the products are sold directly by PPL. It has a wide dealer network of over 50 dealers across India. Currently, exports constitute around 15% of its revenue in FY15 from the exports to Middle East countries. The company sources its main raw materials viz., PVC resins and plasticizers from China, whereas the total imports constitute ~51% of the total purchases of the company in FY16. The manufacturing facility of the company is located at MIDC in Jalgaon, Maharashtra, possessing installed capacities of 1,080 MTPA of PVC lamination films, 500 MTPA of PVC confectionery films, 2,040 MTPA of PVC cling films and 336 MTPA of reprocessed rim as on Dec. 11, 2015, which are utilized at ~50% currently, except cling films, which are utilized at ~40%. PHOOLTAS TRANSRAIL: CRISIL Hikes Rating on INR10.6cr Loan to B -------------------------------------------------------------- CRISIL has upgraded its ratings on the bank loan facilities of Phooltas Transrail Limited (Phooltas) to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 44 CRISIL A4 (Upgraded from 'CRISIL D') Cash Credit 4 CRISIL B/Stable (Upgraded from 'CRISIL D') Letter of Credit 2 CRISIL A4 (Upgraded from 'CRISIL D') Proposed Long Term Bank Loan Facility 10.6 CRISIL B/Stable (Upgraded from 'CRISIL D') The upgrade reflects timely servicing of debt by the company. The rating also reflects extensive experience of the promoters in the railway industry ensuring repeat orders from its customers. Furthermore, the company has healthy unexecuted order book of around INR460 crores ensuring steady revenue visibility over the medium term. These strengths are partially offset by high working capital intensive nature of operations and tender based nature of operations. Key Rating Drivers & Detailed Description Weakness * Working capital-intensive operations: Phooltas's business is highly working capital intensive as reflected in GCA days estimated at around 440 days as on March 31, 2018 on account of high inventory levels and debtor days estimated at around 134 days and 191 days respectively during the same period. CRISIL expects the operation to remain working capital intensive and efficient management of the same would be the key monitorable. * Tender-based operations: The track maintenance industry in India consists of a single major customer, the Indian Railways, and limited number of authorised suppliers. Lack of alternate demand and delay in commissioning of new orders restricts Phooltas's scale of operations. Strengths * Stable market position in the track maintenance industry: Phooltas has a stable market position in the railway maintenance equipment industry. In the track maintenance equipment segment, the company has an edge over its competition which provides it with a first-mover advantage and cost advantage over other large players; this has helped the company maintain a sizeable market share and the same is reflected from its healthy outstanding order book position. Outlook: Stable CRISIL believes that Phooltas will continue to benefit over the medium term form longstanding experience of the promoters. The outlook can be revised to positive if there is significant increase in scale of operation along with stable profitability or if the working capital management improves leading to better liquidity. The outlook may be revised to negative if the working capital management deteriorates leading to poor liquidity. Phooltas having its manufacturing facility in Patna and Haridwar, was set up in 1987 as an Indo-US joint venture, with Harsco Rail (a division of Harsco Corporation) as the equity partner. It sells track maintenance equipment largely to various divisions of Indian Railways. PITTI CASTINGS: Ind-Ra Affirms 'D' Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Pitti Castings Pvt Ltd.'s (PCPL) a Long-Term Issuer Rating at 'IND D'. The instrument-wise rating actions are given below: -- INR200.0 mil. (reduced from INR250.0 mil.) Fund-based working capital limit (long-/short-term) affirmed with IND D rating; -- INR845.5 mil. Term loan limits (long-term) due on March 2023 affirmed with IND D rating; and -- INR100.0 mil. (increased from INR50.0 mil.) Non-fund-based working capital limit (short-term) affirmed with IND D rating. KEY RATING DRIVERS The affirmation reflects continued delays in debt serving obligations by PCPL due to a stretched liquidity position. The company is not generating sufficient operational cash flows due to its sub-optimal capacity utilization because of a weak order book position. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could lead to a positive rating action. COMPANY PROFILE Established in August 2012, PCPL is a part of the Pitti group of companies. It manufactures graded iron and steel castings, which are used in various industries such as windmill, earth-moving equipment and vehicle. PREMIER STEELS: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Premier Steels' (PS) Long-Term Issuer Rating at 'IND B'. The Outlook is Stable. The instrument-wise rating action is: -- INR100 mil. Fund-based working capital limits affirmed with IND B/Stable/IND A4 rating. KEY RATING DRIVERS The affirmation reflects PS's small scale of operations and weak credit metrics. The weak financial and credit profiles are attributed to the working capital intensive nature of business and lower absolute EBITDA. Revenue grew moderately to INR239 million in FY18 (FY17: INR215 million) owing to a slow recovery in the prices of steel products. EBITDA margins were stable at 4.8% in FY18 (FY17: 4.7%). Interest coverage (operating EBITDA/gross interest expense) increased slightly to 1.2x FY18 (FY17: 1.0x) and net leverage (adjusted net debt/operating EBITDAR) reduced sharply to 8.3x (11.2x), due to lower debt levels at year end. PS's working capital cycle remained stretched at 234 days in FY18 (FY17: 283 days) due to high inventory holding. Also, the firm's liquidity has remained tight, with average peak working capital utilization of 95% over the 12 months ended May 2018. The ratings, however, are supported by the experience of PS's promoter of over three decades in trading steel products. RATING SENSITIVITIES Positive: Substantial growth in the top line and EBITDA margin, leading to an improvement in credit metrics, and a shorter working capital cycle, all on a sustained basis, could lead to a positive rating action. Negative: Significant deterioration in the EBITDA margin, credit metrics and working capital cycle, on a sustained basis, could be negative for the ratings. COMPANY PROFILE PS was incorporated in 1983 and engaged in the trading of steel products. It has a stock yard in Ernakulum. PS is managed by Mr. V.A. Mohammed Ashraf. Ms. Waheed Mohammed Ashraf, Mr. T.P. Ismail, and Mr. Zakir Mohammed Ashraf are the partners of the firm. PRINCE MARINE: CARE Reaffirms D Rating on INR5.50cr LT Loan ----------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Prince Marine Transport Services Private Limited (PMTS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 0.82 CARE D; Reaffirmed; Facilities Based on best available (Term Loan) Information Long-term Bank 5.50 CARE D; Reaffirmed; Facilities Based on best available (Cash Credit) Information Short-term Bank 3.00 CARE D; Reaffirmed; Facilities Based on best available Information Detailed Rationale & Key Rating Drivers CARE has been seeking information from PMTS to monitor the ratings vide e-mail communications/letters dated May 24, 2018, May 2, 2018, April 30, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on PMTS's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of the ongoing delays in the repayment of debt obligations and the account is classified as NPA. PMTS was founded by Mr Abdul Razak in July 1993 as a proprietary firm. During the year 1994, it was converted into a partnership firm and then in 2007 into a private limited company. The company initially started with the business of hiring ships, vessels, barges, tugs and towage of vessels within Mumbai harbor limits as well as for ocean passages. During 1998, it ventured into the business of cargo lighterage. To capitalize on the opportunity of various services in the developing port sector, the company entered into dredging support services and bagged a dredging contract from JSW Jaigarh Port Ltd. in the year 2009. PURE PETROCHEM: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Pure Petrochem India Private Limited's (PPIPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR45.0 mil. Fund-based working capital limits affirmed with IND BB-/Stable/IND A4+ rating; -- INR20.0 mil. Non-fund-based working capital limits affirmed with IND A4+ rating; -- INR16.8 mil. (reduced from INR20.6 mil.) Term loan due on November 2020 affirmed with IND BB-/Stable rating; -- INR25.0 mil. Proposed fund-based working capital limits* assigned with Provisional IND BB-/Stable/Provisional IND A4+ rating; and -- INR34.4 mil. Proposed fund-based working capital limits withdrawn (the company did not proceed with the instrument as envisaged) and the rating is withdrawn. * The rating is provisional and shall be confirmed upon the sanction and execution of the loan documents for the above facilities by PPIPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The affirmation continues to reflect the modest credit profile of PPIPL. Its revenue rose to INR210.7 million in FY18 from INR93.8 million in FY17, driven by increased orders from established customers. Moreover, its interest coverage (operating EBITDA/gross interest expenses) improved to 2.5x in FY18 from 2.0x in FY17 and net leverage (adjusted net debt/operating EBITDAR) enhanced to 3.2x from 4.0x. The improvement in the credit metrics was due to lower interest cost and year-end debt and higher absolute EBITDA. FY18 financials are provisional. The ratings continue to be constrained by PPIPL's volatile EBITDA margin, which was 11.1%-24.2% over FY13-FY18, owing to the commoditized nature of raw material. The ratings are further constrained by PPIPL's modest liquidity, indicated by a 93% average peak utilization of the cash credit limits for the 12 months ended May 2018. The ratings, however, remain supported by the promoters' experience of more than two decades in the lubricating oil manufacturing and processing business that has led to an established customer base and, thus, facilitated repeat orders over the years. RATING SENSITIVITIES Negative: A decline in the revenue and/or the EBITDA margin, leading to deterioration in the credit metrics, on a sustained basis, could lead to a negative rating action. Positive: A substantial rise in the revenue and/or the EBITDA margin, leading to an improvement in the credit metrics, on a sustained basis, could lead to a positive rating action. COMPANY PROFILE PPIPL manufactures processes and supplies grease and lubricating oils. Its annual total grease and lubricating oil production capacity levels are 10,800 metric tons and 60,000 kiloliters, respectively. RAJ BORAX: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Raj Borax 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: -- INR55 mil. Fund-based facilities migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR55 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 20, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Raj Borax Private Limited manufactures boron-based chemicals and fertilizers for agriculture, ceramics, glass, fiber glass industries, among others. RAMA AGRO: CARE Assigns B/A4 Rating to INR6cr Bank Facilities ------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Rama Agro Industries (RAI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/short- 6.00 CARE B; Stable/CARE A4 Assigned term Bank Facilities Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of RAI are primarily constrained on account of its small scale of operations coupled with financial risk profile marked by moderate profitability margins, leveraged capital structure and stressed liquidity position. The ratings, further, constrained on account of seasonality associated with agro based commodities and presence in highly fragmented and government regulated industry. The ratings, however, favorably take into account its long track record of operations coupled with experienced management in the agro industry. The ability of RAI to increase its scale of operations while improving profitability in light of the volatile agro commodities prices and improvement in the capital structure as well as efficient management of working capital shall be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operation coupled with moderate profitability margins: The scale of operations of the firm stood relatively small with Total Operating Income (TOI) of INR21.50 crore and PAT of INR0.10 crore in FY17. Further, the profitability margins of the company stood moderate marked by PBILDT and PAT margin of 4.75 % and 0.50% respectively in FY17. Further, PBILDT margin has significantly improved by 163 bps over FY16 due to lower material cost owing to lower trading activity. Despite of significant increase in PBILDT margin, PAT margin remained stable owing to higher interest expenses. Financial risk profile marked by leveraged solvency position and stressed liquidity position: The capital structure of the company stood leveraged with an overall gearing of 3.73 times as on March 31, 2017. Further, the debt service coverage indicators stood weak with total debt to GCA stood at 42.17 times as on March 31, 2017 and interest coverage ratio stood weak at 1.24 times in FY17. The liquidity position of the firm stood stressed with 85-90% utilization working capital bank borrowings during last 12 months ended February 2018. Further, owing to higher inventory holding period, operating cycle of the company stood elongated at 156 days in FY17. Seasonality associated with agro based commodities and presence in highly fragmented and government regulated industry: As the firm is engaged in the business of trading of agriculture commodities, the prices of agriculture commodities remained fluctuating and depend on production yield, demand of the commodities and vagaries of weather. Hence, profitability of the RAI is exposed to vulnerability in prices of agriculture commodities. Furthermore, the industry is characterized by high degree of government control both in procurement and sales for agriculture commodities. Government of India (GoI) decides the Minimum Support Price (MSP) payable to farmers. Key Rating Strengths Experienced and qualified management in agro commodities coupled with long track record of operation Mr. Dinesh Agarwal, Proprietor, LLB and MBA by qualification, has more than two decade of experience in the agro industry and looks after overall affairs of the firm. Further, he is assisted by the second tier management who has longstanding presence in the industry and has established relations with customers and suppliers. Being presence in the industry since almost two decade, the firm has established relationship with customer and supplier. Indore (Madhya Pradesh) based Rama Agro Industries (RAI) was formed in 2000 by Mr. Dinesh Agarwal and Mr. Manish Agarwal to carry out the business of agro commodities. Subsequently, in FY18, the constitution of RAI changed to proprietorship concern. RAI is engaged in the business of processing as well as trading of pulses at manufacturing facility located at Devguradia Road, Indore with installed capacity of 1500 Metric Tonne per Month (MTPM). It procures raw material from local farmers and sells it to the buyers in state of Maharashtra, Karnataka, Bihar, Punjab, Uttar Pradesh etc. with support from 80-100 brokers. SANRHEA TECHNICAL: CARE Moves B Rating to Not Cooperating --------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Sanrhea Technical Private Limited (STPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 8.30 CARE B; Stable/CARE A4; Facilities/Short Issuer not cooperating; term Bank Based on best available Facilities information Short term Bank 0.18 CARE A4; Issuer not Facilities cooperating; Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from STPL to monitor the rating(s) vide e-mail communications/letters dated February 12, 2018, February 26, 2018, March 9, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings of Sanrhea Technical Private Limited bank facilities will now be denoted as CARE B; Stable/ CARE A4 ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The ratings assigned to the bank facilities of Sanrhea Technical Private Limited (STPL) continue to remain constrained on account of its modest scale of operations, thin profitability and moderately leveraged capital structure, moderate debt coverage indicators and moderate liquidity position during FY18 (refers to the period April 1 to March 31). The ratings, also takes into considerations its presence in the fragmented nature of industry with high degree of competition. The ratings continue to derive strength from the experience of the promoters, established track record and reputed clientele. The ability of STPL to increase its scale of operations, improve its profitability and capital structure with efficient working capital management are the key rating sensitivities. Detailed description of the key rating drivers At the time of last rating on March 31, 2017 the following were the rating strengths and weaknesses. (Updated for the information available from Registrar of Companies). Key Rating Strengths Experienced promoters: Mr. Tushar Patel, aged 50 years, has experience of more than two decades in fabric industry. He is engaged with STTL from its incorporation. He handles overall operations of STTL. All other directors handle second level of management and their roles are non-executive in the business. Established track record of operations and reputed clientele STTL is in operations from the year 1983. It has long standing relations with the suppliers and customers. The company imports raw material mainly from China, Turkey and Germany. Customers are well reputed companies like Apollo Tyres Limited, Sempertrans India Private Limited (Rated: CARE BBB; Stable/CARE A2), Phoenix Conveyor Belts India Private Limited, Zenith Industrial Rubber Products Private Limited, Mega Rubber Technologies Private Limited and Jonson Rubber Industries Limited. Key Rating Weaknesses Modest scale of operations and thin profitability: During FY18 (Prov.), TOI stood at INR31.41 crore as against INR29.79 crore in FY17. During FY18 (Prov.), PBILDT margin of STTL declined and stood at 9.04% as against 9.50% during FY17 and PAT margin stood at 1.46% during FY18 as against 2.82% during FY17. Moderately leveraged capital structure and debt coverage indicators: As on March 31, 2018 (Prov.) capital structure of the company improved marginally and stood moderately leveraged marked by overall gearing of 1.45 times as against 2.55 times in FY16. Also debt coverage indicators improved marked by TDGCA at 5.63 years in FY18 as against 6.85 years in FY17 on account of improvement in GCA level during the year. During FY18, Interest coverage ratio stood at 2.27 times as against 2.24 times in FY17. Moderate Liquidity: As on March 31, 2018 (Prov.), STTL's current ratio improved and stood moderate at 1.23 times as against 1.17 times as on March 31, 2017. Gandhinagar-based (Gujarat), STTL was originally incorporated in June, 1983 in the name of "Kruti Marketing Limited" which was again renamed as "Mahendra Polycot Limited" in March 1997. The said company was renamed as STTL in April, 1997. It is listed on Bombay Stock Exchange. STTL is engaged in manufacturing of technical fabrics namely dipped chafer fabric, liner fabric, belting fabrics and various types of nylons and polyesters. These products are used in tyre industry, conveyer belts, rubber vulcanizing industry, RFL dipping plants, etc. STTL is an ISO 9001:2008 certified company. SARDAR INDUSTRIES: CRISIL Migrates B+ Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sardar Industries (SI) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term Bank Loan Facility .25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 1.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SI for obtaining information through letters and emails dated April 26, 2018, May 11, 2018, June 7, 2018 and June 11, 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 Sardar Industries. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sardar 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 Sardar Industries to 'CRISIL B+/Stable Issuer not cooperating'. SI was established as a partnership firm in 2010 by the Patel family, who manage operations. The firm gins cotton at its facility in Rangpurda, Kadi. SEASON RUBBERS: CRISIL Reaffirms B Rating on INR7cr Cash Loan ------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long- term bank facilities of Season Rubbers Private Limited (SRPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B/Stable (Reaffirmed) The rating continues to reflect SRPL's modest scale of operations in the highly fragmented rubber processing business and the company's below-average financial risk profile. These rating weaknesses are partially offset by promoters' extensive industry experience. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: The scale of operations is modest in the highly fragmented rubber processing industry marked by numerous unorganised players. With low value addition from the processing of rubber into latex the profitability has remained constrained. Scale of operations will remain exposed to high competition in rubber processing segment. * Below-average financial risk profile: Financial risk profile was marked by weak debt-protection metrics due to operating losses in the past, and low value addition nature of operations leading to small net worth. Strength * Promoters' extensive experience in rubber processing industry: The promoters' experience of over two decades and their understanding of the latex processing industry and established relationship with suppliers and customers are expected to support business profile of SRPL over the medium term. Outlook: Stable CRISIL expects SRPL to benefit over the medium term, backed by its promoters' longstanding experience in latex processing segment. The outlook may be revised to 'Positive' if significant improvement in revenues and profitability results in higher accretion to reserves consequently improving the capital structure. Conversely, the outlook may be revised to 'Negative' if any large, debt-funded capex plan or sharp decline in accruals leads to further deterioration in financial risk profile. Incorporated in 1976, Kottayam (Kerala)-based SRPL engaged in processing of raw latex to centrifuged latex. The operations of the company were taken over by Mr. Mathew Mathew of Royal Latex group and their family since November 2015. SHIVDHAN BOARDS: CRISIL Withdraws B Rating on INR7.75cr Loan ------------------------------------------------------------ CRISIL has withdrawn its rating on the long-term bank facilities of Shivdhan Boards Private Limited (SBPL) at the request of the client and on receipt of no dues certificate from the client's bank. The rating action is in line with CRISIL's policy on withdrawal of its bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.75 CRISIL B/Stable (Withdrawn) Proposed Long Term Bank Loan Facility 1.11 CRISIL B/Stable (Withdrawn) Established in 2004, SBPL manufactures bagasse boards and pre- laminated particle boards, which are used in the furniture and construction industries. The boards are sold under Shivdhan brand. SHUBHAM INDUSTRIES: CRISIL Moves B+ Rating to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Shubham Industries-Hyderabad (SI) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.05 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SI for obtaining information through letters and emails dated May 25, 2018, June 7, 2018 and June 11, 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 Shubham Industries-Hyderabad. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Shubham Industries-Hyderabad 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 Shubham Industries-Hyderabad to 'CRISIL B+/Stable Issuer not cooperating'. SI was established as a partnership firm in 2013 by Mr.Rajesh Soni and Mr. Krishnakumar Partani. The firm gins and presses raw cotton (kapas) to make cotton bales, and sells cotton seed. SI's manufacturing facility in Tandur (Andhra Pradesh) has capacity of 45,000 bales per annum. SI commenced its commercial operations from December 2013. SRI SAI: CRISIL Migrates B- Rating to Not Cooperating Category -------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sri Sai Pavan Industries Private Limited (SSP) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 8.5 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Fund- Based Bank Limits 11.5 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SSP for obtaining information through letters and emails dated May 8, 2018, June 7, 2018 and June 11, 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 Sai Pavan Industries Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sri Sai Pavan Industries 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 Sri Sai Pavan Industries Private Limited to 'CRISIL B-/Stable Issuer not cooperating'. SSP was set up in 2009 by Mr. Soma Venkateshwarlu and his family members. The company was acquired by Mr. Gouru Venkateswarulu and Mr. Ranga Sridhar in 2010. The company mills and processes paddy into rice; it also generates by-products such as broken rice, bran, and husk. Its rice mill is located in Nalgonda, Andhra Pradesh. STANLUBES & SPECIALITIES: CARE Reaffirms B- Long-Term Loan Rating ----------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Stanlubes & Specialities (India) Private Limited (SSIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 4.42 CARE B-; Reaffirmed; Issuer Not cooperating; Based on Best available information Short term Bank Facilities 1.00 CARE A4; Reaffirmed; Issuer Not cooperating; Based on Best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from SSIPL to monitor the ratings vide e-mail communications/letters dated April 30, 2018, May 30, 2018, May 31, 2018, June 2, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on SSIPL's bank facilities will now be denoted as CARE B-; ISSUER NOT COOPERATING, CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on March 8, 2017, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Strengths Long & established track record of the company along with experienced management: SSPL has been involved in the business of manufacturing & selling industrial greases & oils for over two decades and has established itself in the industry. Further, the directors have experience of over two decades in the same line of business. Reputed clientele with diverse end user industry: SSPL, over the years have been dealing with reputed players in the industry like, HPCL, IOCL, Gandhar Oil Refinery Ltd and others. The company's end product has uses across different industries like oil, automotive, capital goods and others. Thus, the risk of fall in demand in any particular industry for SSPL's products is mitigated to an extent as it deals with a wide variety of products which cater to the needs of various industries. Key Rating Weakness Weak financial risk profile: SSPL's financial risk profile is characterized by relatively small scale of operations, high leveraged capital structure, weak debt coverage indicators and low profitability margins. Vulnerability of profitability to volatility in prices of raw material and foreign exchange fluctuation: The price SSPL's major raw material, base oil, is a linked to crude oil which is volatile in nature. Thus any change in the prices of crude oil has effect on the prices of base oil thereby, exposing SSPL's profitability to volatility in prices. Furthermore, SSPL imports part of the raw materials, thereby exposing it to volatility in foreign exchange prices the entity does not undertake any hedging activity. High degree of fragmentation and competitive intensity: The industrial grease industry in India is characterized by a high degree of competition, resulting from high fragmentation due to the low entry barriers and low capital intensity of the business. This competitive nature of industry results in price competition thereby effecting the realizations of companies operating in the industry. Incorporated in 1992, SSIPL is engaged in the business of manufacturing of industrial greases &oils. The company's product range include multiple purpose grease, wheel bearing grease, chassis grease, hydraulic oil, machine oil, tool oils and others. SSPL is majorly a contract manufacturer of greases for HPCL, Indian Oil Corporation Limited (CARE AAA) and other large oil & lubricant manufacturers who uses and also sells to other industrial clients. The company earns majority of the revenue from the domestic market (forming about 98%) where it sells industrial greases to large refining companies & lubricant manufacturers. SSPL's major raw material is base oil which is procured from both, the domestic (99.60% in FY15) & international markets. The company's plant is located in Navi Mumbai and it has its registered office in Mumbai. STARWOOD TECHNO: CRISIL Lowers Rating on INR4.7cr Loan to D ----------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Starwood Techno Industries Private Limited (STIPL) to 'CRISIL D' from 'CRISIL B/Stable'. The downgrade reflects delays in servicing debt. CRISIL has held discussions with the bankers, who have confirmed the ongoing delay. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.7 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Proposed Long Term Bank Loan Facility .3 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Term Loan 4.0 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with STIPL for obtaining information through letters and emails, December 18, 2017 and January 17, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. 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 they are arrived at without any management interaction and are based on the best available, or limited or dated information. 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 STIPL which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on STIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Consequently CRISIL has downgraded its rating on the bank facilities of STIPL to 'CRISIL D' from 'CRISIL B/Stable'. The downgrade reflects delays in servicing debt. CRISIL has held discussions with the bankers, who have confirmed the ongoing delay. Incorporated in 2016, STIPL has set up a project in Nanded (Maharashtra) to manufacture LED (light emitting diode) and CRT (cathode ray tube) televisions (TV). The project will start commercial operations in December 2016. The promoters Mr Kanhaiyalal Rangani, Mr Dilip Rangani, Mrs Vimla Devi Rangani and Mrs Komal Rangani'had two other proprietorship firms, Parisons Electronics (PE) and Kings Electronics (KE) which were importing LED and CRT TVs from China and selling it under its own brand 'Starwood'. Both firms ceased operations in March 2016 and the business was taken over by STIPL. STIPL plans to stop trading operations once its manufacturing operations stabilises. STERLING IMPEX: CRISIL Migrates B Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sterling Impex - Delhi (SI) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter of credit 10 CRISIL A4 (ISSUER NOT & Bank Guarantee COOPERATING; Rating Migrated) Overdraft 10 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SI for obtaining information through letters and emails dated April 24, 2018, May 18, 2018, June 6, 2018 and June 11, 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 Sterling Impex - Delhi. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Sterling Impex - Delhi 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 Sterling Impex - Delhi to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. SI was established in 2003 by Mr Anil Mahajan. The firm imports and trades in polyvinyl chloride (PVC) and leather fabric; plasticizers such as DOP, DIP etc and resin, calcium carbonate, PVC, and other chemicals. The business activities are carries out at Delhi and Kashipur, Uttrakhand. UNIVERSAL TECHNOCAST: CARE Cuts Rating on INR5.92cr Loan to B+ -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Universal Technocast (UNT), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 5.92 CARE B+; Issuer not cooperating; Facilities Revised from CARE BB; ISSUER NOT COOPERATING on the basis of best available information Short term Bank 0.12 CARE A4; Issuer not cooperating; Facilities Revised from CARE A4+; ISSUER NOT COOPERATING on the basis of best Available Information Detailed Rationale & Key Rating Drivers CARE has been seeking information from UNT to monitor the rating(s) vide e-mail communications/letters dated April 3, 2018, April 4, 2018, April 6, 2018, April 11, 2018, numerous phone calls and final reminder letter dated April 20, 2018. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on Universal Technocast's bank facilities will now be denoted as CARE B+/CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed description of the key rating drivers At the time of last rating on April 27, 2017 the following were the rating strengths and weaknesses. Key Rating Weaknesses Moderate liquidity position: The current ratio stood moderate at 1.61 times as on March 31, 2015, as against 3.63 times as on March 31, 2014. The working capital cycle elongated to 118 days as on March 31, 2015, as against 113 days last year, primarily due to an increase in inventory level. Its average working capital utilization limit for the past 12 months ended January 31, 2016, was moderate at 60%. Presence is highly competitive and fragmented industry with susceptibility of profitability to volatile raw material prices: Entry barriers to the casting industry are very low, due to lower capital requirement and standardized technologies being used, which result into very low pricing power and high competition amongst the players which adversely affect the profitability of the companies present in this business. Factors affecting the volatility in steel prices include general domestic and international economic conditions, labor costs, competition, and higher raw material costs for the producers of steel, import duties and tariffs and currency exchange rates. Hence, any significant increase in the prices of steel scrap will adversely affect the profitability of the firm. Risk associated with partnership concern: UNT being a partnership firm is exposed to withdrawal of capital by the partners which may affect its financial flexibility. Key Rating Strengths Experienced partners: UNT's operations are managed by Mr. Sureshbhai Hirpara, Mr. Saileshbhai Patel and Mr. Prafulbhai Patel. Mr. Sureshbhai Hirpara looks after the purchase department, Mr. Saileshbhai Patel manages the production department and Mr. Prafulbhai Patel looks after the finance department. All the three key partners are associated with UNT since its inception. Some of the partners are also involved in other business such as manufacturing and printing of cotton and grey fabrics in the name of a partnership firm 'M/S Nisan Exports' and in manufacturing of CFL (Compact fluorescent lamp) in the name of Nisan Electricals (Inidia) Private Limited. Location advantage of presence in Rajkot being a foundry cluster Rajkot, located in the state of Gujarat, is an important foundry cluster in Western India. There are about 500 foundry units at Rajkot. The cluster came-up mainly to cater to the casting requirements of the local diesel engine industry. The geographical spread of the cluster includes AjiVasahat, Gondal Road and Bhavanagar Road areas. Comfortable capital structure and debt protection metrics: The capital structure stood comfortable marked by an overall gearing ratio of 0.54x as on March 31, 2016, as against 0.46x as on March 31, 2015. The marginal deterioration was on account of increase in the total debt as against networth base. The debt protection metrics deteriorated marginally marked by total debt to gross cash accruals of 2.41 times as on March 31, 2015, as against 1.63 times as on March 31, 2014 but remained at comfortable level. The interest coverage ratio stood comfortable at 9.01 times for FY15 as against 5.41 times for FY14, due to a lower interest and finance charges. Rajkot based UNT was formed in 2006 as a partnership firm. UNT is into business of manufacturing of investment castings by hot wax process. UNT currently has 12 partners with unequal profit and loss sharing ratio. Some of the partners are involved in manufacturing and printing of cotton and grey fabrics in the name of a partnership firm 'M/S Nisan Exports' and in manufacturing of CFL lamps in the name of Nisan Electricals (India) Private Limited (NEIPL). Mr. Sureshbhai. G. Hirpara, Mr. Saileshbhai. R. Patel and Mr. Prafulbhai. R. Patel is the key partners of the firm. UNT operates from its sole manufacturing facility located in Rajkot (Metoda) and has an installed capacity of 1800 MTPA of investment and precision casting. The firm has installed a 1.25 megawatt of windmill in the year 2012 and also set up another windmill with a power generation capacity of 0.8 MW near Jamnagar in March, 2015. VARDHINI INDUSTRIES: CRISIL Migrates B+ Rating to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vardhini Industries (VI) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 6.48 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 0.52 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with VI for obtaining information through letters and emails dated April 26, 2018, May 11, 2018, June 7, 2018 and June 11, 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 Vardhini Industries. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Vardhini 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 Vardhini Industries to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Established in 1992 as a proprietorship concern by Ms D Sai Mala, VI based in Secunderabad (Hyderabad) is engaged in manufacturing of steel furnitures. VEE AAR: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Vee Aar Life Space LLP (VALS) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR1.0 bil. Term loan due on September 2023 assigned with IND BB+/Stable rating. KEY RATING DRIVERS The ratings reflect the execution and salability risks associated with VALS's ongoing residential project Sangini Arise, which is scheduled to be completed by June 2021. The total project cost of INR2,520 million is funded by promoter contribution of INR600 million, term loan of INR1,000 million with a moratorium period of 29 months from the first disbursement, customer advances of INR520 million and unsecured loans of INR400 million. As of March 31, 2018, VALS had received promoter contribution of INR380 million, customer advances of INR520 million and unsecured loan of INR190 million. At end-March 2018, the firm achieved about 43% project completion and incurred INR1,090 million of the total project cost. It sold 62 flats of the total 161 flats and collected 43% of the total sale consideration of INR1,200 million as of March 2018. The remainder will be collected by 2QFY21. However, the ratings are supported by the firm's promoters' over three decades of experience in executing real estate projects. They have so far implemented 56 projects with a total constructed space of 5.75 million sf. RATING SENSITIVITIES Positive: Successful project completion and sale of units as planned, leading to strong cash flow visibility could lead to a positive rating action. Negative: Delays in project completion or weak sales leading to lower-than-expected cash inflow and cost overruns in the project, leading to a shortfall in cash flows required for debt servicing could be negative for the ratings. COMPANY PROFILE Incorporated in 2017, VALS undertakes real estate projects. Its current project consists of four luxurious residential towers of 19 floors each. The total built-up area of the project is 814,958 sf. VIKAS PULSE: CRISIL Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vikas Pulse Mill to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 0.77 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with Vikas for obtaining information through letters and emails dated April 26, 2018, May 11, 2018, June 7, 2018 and June 11, 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 Vikas Pulse Mill. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Vikas Pulse Mill 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 Vikas Pulse Mill to 'CRISIL B+/Stable Issuer not cooperating'. Vikas a partnership concern was established by the Patel family in 1991 are engaged in trading and processing of various types of pulses and agricultural goods including peas, maize, moong, toor, toor dal, bardana and wheat. Vikas has processing capacity to process 30 tonnes per day and the actual utilization varies as per the demand. VISHAL CONDUIT: CARE Migrates B-/A4 Rating to Not Cooperating ------------------------------------------------------------- CARE Ratings has migrated the rating on bank facility of Vishal Conduit Products Private Limited to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 5.00 CARE B-/CARE A4; Issuer not Facilities/ cooperating; Based on best Short term Bank available information Facilities Detailed Rationale & Key Rating Drivers CARE has been seeking information from Vishal Conduit Products Private Limited to monitor the rating(s) vide e-mail communications/letters dated May 25, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Vishal Conduit Products Private Limited's bank facilities will now be denoted as CARE B- /CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings are constrained by small and declining scale of operations with losses at cash level and negative net worth base. The aforesaid constraints are partially offset by the experience of the promoters with long track record of operations. Detailed description of the key rating drivers At the time of last rating on March 16, 2017 the following were the rating strengths and weaknesses (updated for the information available from Ministry of Corporate Affairs website). Key Rating Weaknesses Small and declining scale of operations with losses at cash level: VCPL is a relatively small player with total operating income (TOI) of INR 5.89 crore in FY17 (refers to the period April 01 to March 31) and and negative net worth base of INR 1.97 crore as on March 31, 2017. Moreover, the company continued to incur losses at net and cash level in FY17. Leveraged capital structure and weak debt coverage indicators: The capital structure of VCPL stood leveraged marked by overall gearing ratio of (-)1.39 times as on March 31, 2017. Additionally, the debt coverage indicators remained weak marked by interest coverage ratio of (-)5.45x in FY17 and total debt to GCA ratio of (-)1.05x for FY17. Elongation of operating cycle: The operating cycle elongated from 127 days for FY16 to 181 days for FY17. Key Rating Strengths Experienced promoters with long track record of operations: VCPL has a track record of being engaged in steel manufacturing business for around a decade. Mr S Mohinder Singh, Managing Director, has more than four decades of experience in similar line of business. He is actively involved in the strategic planning and running the day to day operations of the company along with the other directors and a team of experienced personnel. Vishal Conduit Products Pvt. Ltd. (VCPL), incorporated in 2005 by the Singh family of Jalandhar Punjab with the objective of manufacturing of iron & steel products. Since inception, the company is engaged in manufacturing of mild steel (MS) ingots and mild steel (MS) pipes. The facility of the company is located at Jalandhar, Punjab with an annual installed capacity of 12,000 MT per annum for (MS) ingots and 1200 MT per annum for (MS) pipes. Mr S Mohinder Singh (Graduate), Managing Director, looks after the day to day operations of the entity. VCPL also undertook trading of iron and steel products in the last three years but the same accounted for less than 5%. ========= J A P A N ========= MARUEI DEPARTMENT: Store Closes Doors After 403 Years ----------------------------------------------------- The Japan Times reports that Maruei Department Store Co. in Nagoya, Aichi Prefecture, closed its doors Saturday, ending a 403-year history that started with a kimono shop in 1615. The Japan Times relates that the store, originally called Juichiya, merged with another retailer and became Maruei in 1943. The department store once boasted greater floor space than rival stores in western Japan, the report says. However, Maruei's sales had slumped since the collapse of the nation's bubble economy in the early 1990s. Sales in the fiscal year that ended in February last year fell to ù16.8 billion, about one-fifth of its peak in 1992, the report relates. In 2010, the company came under the wing of Nagoya-based drugmaker Kowa Co. But it failed to survive amid growing competition, particularly from online retailers, according to the Japan Times. The report notes that Kowa plans to open a new commercial facility as early as 2027 in the same location. Maruei President Yoshimitsu Hamajima told crowds of shoppers who gathered at the department store for its closing ceremony, "Thank you very much," the Japan Times relays. "Some sections of Maruei, such as the foods department, boasted strong popularity among ordinary people," said Mitsuhiro Hayashida, chief consultant at Mitsubishi UFJ Research and Consulting Co. "But after it opened shops for young women, regular customers stopped coming because the lineup of goods were not consistent." he added. =============== M A L A Y S I A =============== 1MDB: Task Force Freezes More Than 400 Bank Accounts ---------------------------------------------------- Channel NewsAsia reports that more than 400 bank accounts involving MYR1.1 billion of funds from individuals, political parties and non-governmental organisations (NGOs) have been frozen, believed to be linked to Malaysia's multi-billion 1MDB scandal. CNA relates that the 1MDB task force said in a press statement on July 2 that the frozen 408 accounts "are believed to have been linked to misappropriation and misuse of 1MDB funds". These accounts also involved nearly 900 transactions made between March 2011 and September 2015, said the statement. According to the report, the task force added that the accounts frozen were linked to 81 individuals and 55 companies who were believed to have received funds from 1MDB. "1MDB special task force is currently conducting an investigation to identify the level of involvement of the parties involved. Investigations are conducted thoroughly by fairness to all parties involved." The task force added that it "does not rule out the possibility that there will be another account that will be frozen later," the report relays. "All accounts are frozen in accordance with the provisions of the law of the country as it normally does, and as such, there is no issue of the action of freezing the accounts taken to persecute any party," it added. CNA adds that the task force had earlier said it had frozen accounts belonging to the United Malays National Organisation (UMNO), the political party once led by Najib. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. The TCR-AP, citing The Wall Street Journal, reported on April 27, 2016, that the company defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). Asian Nikkei Review reported in June 2016 that Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund. 1MDB: Former Malaysian PM Najib Razak Arrested ---------------------------------------------- Al Jazeera reports that former Malaysian Prime Minister Najib Razak has been arrested in Kuala Lumpur, state media reported, as part of probe into alleged theft and money-laundering at the 1MDB state investment fund. Najib's family lawyer told Channel News Asia on July 2 that the ex-leader would be charged for his role in the 1MDB scandal the next day. Earlier on July 1, Malaysia's anti-corruption agency questioned Riza Aziz, the stepson of Najib and a Hollywood film producer, the report says. Alleged corruption at the 1MDB fund helped bring on the unexpected defeat of Najib's coalition in the May 9 polls, according to the report. The new government reopened investigations that were stifled while Najib was in office. Riza was solemn as he arrived at the anti-graft office and didn't speak to reporters, the report says. According to CNA, US investigators said Riza's company, Red Granite Pictures Inc, used money stolen from 1MDB to finance Hollywood films including the Martin Scorsese-directed The Wolf of Wall Street. Red Granite agreed in March to pay the US government $60 million to settle claims it benefited from the 1MDB scandal, adds CNA. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. The TCR-AP, citing The Wall Street Journal, reported on April 27, 2016, that the company defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). Asian Nikkei Review reported in June 2016 that Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund. ================= S I N G A P O R E ================= CW ADVANCED: To Hold Informal Noteholders' Meeting on July 16 ------------------------------------------------------------- Business Times reports that CW Advanced Technologies will meet holders of its 7 per cent notes due 2018 in a series of informal sessions to discuss the implications of its recent default, the privately held subsidiary of Hong Kong-listed engineering company CW Group said on June 28. The first of the meetings, which will be facilitated and moderated by the Securities Investors Association (Singapore), will take place on July 16, the report says. BT relates that the notes, of which there is an outstanding SGD75 million in principal amount, were due to be redeemed on June 25, but CW Advanced Technologies failed to do so. The issuer also failed to pay interest on the notes on June 25, and does not expect that it will be able to do so by June 28, which is the last day of a grace period. Failure to do so constitutes an additional event of default under the notes, the report adds. According to the report, the agenda of the first informal meeting will be to provide the noteholders with an overview of the group's business and financial position as well as a status update on the group's financing exercises, and to engage in a discussion regarding the implications of the default, the borrower said. The meeting will solely be for the dissemination of information, and no decision or voting will be made at the meeting. It is also private and confidential and will be held on an entirely without prejudice basis, CW Advanced Technologies said. Singapore-based CW Advanced Technologies Pte. Ltd. -- http://www.cwgroup-int.com/lang-en/-- manufactures and distributes machine tools. The Company offers precision engineering solutions, cement production equipment and components, and machine parts. CW Advanced Technologies serves construction materials, precision machine tool engineering, energy, electronic and semi-conductor, automotive, oil, gas and marine, and aerospace industries. STRATECH GROUP: Creditors Reject Scheme of Arrangement ------------------------------------------------------ Rachel Mui at The Strait Times reports that the Stratech Group has failed to garner creditors' approval for its proposed scheme of arrangement, the surveillance technology provider said in an exchange filing on July 1. A scheme of arrangement is a collective agreement between a company and its shareholders which must be approved by the High Court, and will be binding on all shareholders if a voting threshold is met, the report notes. According to the report, the Court will only decide whether to approve the proposed scheme if the majority of creditors in number present and voting, holding at least 75 per cent in the value of the debt claims, agree to it. Stratech added that two meetings with creditors of the company and its indirect subsidiary, Stratech Systems, were held on June 29, the report says. At the first meeting, only 21 per cent in value and 33 per cent in the number of secured creditors approved the scheme, while 35 per cent in value and 71 per cent in the number of unsecured creditors were in favor of it, the Strait Times says. At the second meeting later the same day, 74 per cent in value and 67 per cent in the number of unsecured creditors gave the go- ahead for the proposed scheme of arrangement, the report relates. The Strait Times relates that the group said it is now "in consultation with its advisers as to the next steps and courses of action to take and will provide updates as soon as practicable". Stratech has been suspended from trading since August last year over unresolved repayment of loan, payroll and Central Provident Fund issues, the report adds. The Stratech Group Limited is principally engaged in proprietary real-time video and image-based intelligent Vision technology. The Company combines video analytics with advanced electro-optics sensor technology to provide surveillance and security solutions for the aerospace, land transport, and maritime surveillance and security industries. =========== T A I W A N =========== HTC CORP: To Lay Off 1,500 Jobs in Taiwan ----------------------------------------- The Strait Times reports that HTC Corporation announced on July 3 it would slash 1,500 jobs, around a fifth of its total workforce, in the biggest staff cull for three years following heavy losses. According to the report, the announcement of the cuts to its manufacturing workforce comes despite a new deal with Google, completed in January, which boosted HTC's first quarter performance after a dismal 2017. Once a star of the intensely competitive smartphone sector, HTC has been struggling in the face of stiff competition from Apple and Samsung as well as strong Chinese brands such as Huawei, the Strait Times says. It incurred a net loss of NT$16.91 billion (SGD758.75 million) in 2017 and a loss per share of NT$20.58, the highest since it listed on the Taiwan Stock Exchange in March 2002, the report discloses. Losses of NT$9.8 billion in the last three months of 2017 represented its worst ever quarterly results, the report notes. The Strait Times says HTC described the cuts -- which will be implemented by the end of September -- as "a decisive step in the realignment of resources across the organisation" that would allow "more flexible operations management". The report notes that under the US$1.1 billion deal with Google, the US tech giant took on half of HTC's research and development staff -- about 2,000 people. Many of them had already been working on its Pixel handset, manufactured by HTC, as well as acquiring intellectual property licensing, the report says. The report notes that the deal reflected Google's wish to emulate the success of Apple iPhones by controlling the hardware as well as the software used in the premium-priced handsets. Following the Google deal, HTC announced its first quarterly gains for almost three years in May, posting a net profit of NT$21.1 billion, the Strait Times discloses. But while analysts said the Google agreement would mean some immediate benefits for HTC, such as more capital and cost reductions, they predicted a turnaround in its fortunes was unlikely. In 2015, the company cut more than 2,000 jobs, slashing its workforce by 15 per cent after posting its then biggest ever quarterly loss of NT$8.0 billion, the report recalls. Taiwan-based HTC Corporation -- http://www.htc.com/sea/-- designs, manufactures, assembles, processes, and sells smart mobile devices. ********* 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 ***