/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180723.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, July 23, 2018, Vol. 21, No. 144 Headlines A U S T R A L I A ALINTA ENERGY: Moody's Withdraws Ba1 CFR for Business Reasons BATTLEFIELD FASHION: First Creditors' Meeting Set for July 31 CRO TRAVEL: First Creditors' Meeting Set for July 27 FEELIN FRUITY: First Creditors' Meeting Set for July 31 ONSLOW WORKFORCE: First Creditors' Meeting Set for July 30 PAYYOURBILLS PTY: Second Creditors' Meeting Set for July 30 SIMON MASONRY: Second Creditors' Meeting Set for July 30 WAITAN GROUP: High-End Restaurant Collapses Into Liquidation WIRE NETWORKS: Second Creditors' Meeting Set for July 30 C H I N A ROAD KING: S&P Alters Risk Profile to Fair & Affirms 'BB-' ICR YIDA CHINA: Fitch Alters Outlook to Stable & Affirms 'B' LT IDR I N D I A BHUSHAN POWER: NCLAT Allows Lenders to Meet & Finalize Bid DHARAMVIR EXPORTS: Ind-Ra Maintains B+ Rating in Non-Cooperating DUGAR OVERSEAS: CRISIL Withdraws D Rating on INR15.7cr Loan FRISCO GLOBAL: CRISIL Lowers Rating on INR15cr Loan to D JAGDISH PRASAD: Ind-Ra Maintains B+ LT Rating in Non-Cooperating KANSARA POPATLAL: CRISIL Maintains B Rating in Not Cooperating LOOMTEX FABRICS: CRISIL Maintains B Rating in Not Cooperating M.M. COTTON: CRISIL Maintains B Rating in Not Cooperating MAHAVIR BUILDERS: CRISIL Maintains B Rating in Not Cooperating MAITRI AND MAITRI: CRISIL Maintains B Rating in Not Cooperating MANGANG CONSTRUCTIONS: CRISIL Keeps B Rating in Not Cooperating MATSYODARI STEEL: CRISIL Maintains B Rating in Not Cooperating MBR GROUP: CRISIL Maintains B Rating in Not Cooperating Category MUTHUS GOLDEN: CRISIL Maintains B Rating in Not Cooperating NAVJIVAN POLYFAB: Ind-Ra Migrates B LT Rating to Non-Cooperating NAVKAR SUGARS: CRISIL Maintains B Rating in Not Cooperating N KUMAR: CRISIL Maintains B Rating in Not Cooperating Category PANIPAT JALANDHAR: CRISIL Raises Rating on INR3646cr Loan to B PRASHANTI AYURVEDIC: Ind-Ra Ups LongTerm Issuer Rating from 'B+' RADHE GIRDHARI: CRISIL Reaffirms B Rating on INR5.6cr LT Loan RAMKAMAL CHEMICALS: CRISIL Migrates Rating from B/Not Cooperating SHRI RANI: CRISIL Maintains B Rating in Not Cooperating Category SHIRAJ TIMBER: CRISIL Lowers Rating on INR25.5cr Loan to D SHRIRAM INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating SREE GURU: CRISIL Maintains B Rating in Not Cooperating Category SREE HARSHA: CRISIL Maintains B Rating in Not Cooperating SRI GANESH: CRISIL Maintains B Rating in Not Cooperating Category SRI GAYATHRI: CRISIL Lowers Rating on INR5cr LT Loan to D SRI MAHAGANAPATHI: CRISIL Maintains B Rating in Not Cooperating SRI MURUGAR: CRISIL Maintains B Rating in Not Cooperating SRI SAI LAKSHMI: CRISIL Maintains B Rating in Not Cooperating SRI VENKATESWARA: CRISIL Maintains B Rating in Not Cooperating SOUTH PARK: CRISIL Migrates Rating from B+/Not Cooperating SRINIVASA RAW: CRISIL Assigns 'B' Rating to INR1cr Cash Loan T.M. MOTORS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating TAMIL NAADU: CRISIL Maintains B Rating in Not Cooperating TATA POWER: S&P Alters Outlook to Pos. & Withdraws 'B+' ICR TM MOTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating TRANS VOLT: CRISIL Maintains B Rating in Not Cooperating Category UNI PROFILES: CRISIL Maintains B Rating in Not Cooperating UNITED WIRE: CRISIL Maintains D Rating in Not Cooperating VJR POULTRY: CRISIL Maintains B Rating in Not Cooperating I N D O N E S I A MEDCO ENERGI: Fitch Alters Outlook to Pos. & Affirms 'B' LT IDR N E W Z E A L A N D D E MOONEY: In Liquidation; Jeweller Serves Home Detention S I N G A P O R E FORELAND FABRICTECH: Independent Directors Resign GLOBAL CLOUD: Fitch Corrects July 5 Ratings Release HYFLUX LTD: Has $2.95BB in Total Liabilities as of March 31 MARY CHIA: Ordered to Resolve Issues w/ Partner Over Liquidation - - - - - ================= A U S T R A L I A ================= ALINTA ENERGY: Moody's Withdraws Ba1 CFR for Business Reasons ------------------------------------------------------------- Moody's Investors Service has withdrawn Alinta Energy Pty Limited's Ba1 corporate family rating. Prior to withdrawal, the rating had a positive outlook. RATINGS RATIONALE Moody's has decided to withdraw the rating for its own business reasons. BATTLEFIELD FASHION: First Creditors' Meeting Set for July 31 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Battlefield Fashion House Pty Ltd will be held at the offices of BPS Reconstruction and Recovery, Level 5, Suite 6, 350 Collins Street, in Melbourne, on July 31, 2018, at 10:00 a.m. Simon Patrick Nelson of BPS Reconstruction was appointed as administrator of Battlefield Fashion on July 19, 2018. CRO TRAVEL: First Creditors' Meeting Set for July 27 --------------------------------------------------- A first meeting of the creditors in the proceedings of CRO Travel Pty Ltd will be held at the offices of Chartered Accountants Australia and New Zealand, Level 18 Bourke Place, 600 Bourke Street, in Melbourne, Victoria, on July 27, 2018, at 10:00 a.m. Mathew Terence Gollant of Courtney Jones & Associates was appointed as administrator of CRO Travel on July 17, 2018. FEELIN FRUITY: First Creditors' Meeting Set for July 31 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Feelin Fruity (Tas) Pty Ltd will be held at Gateway Inn, 16 Fenton Street, in Devonport, Tasmania, on July 31, 2018, at 11:00 a.m. Robert Woods & Travis Anderson of Deloitte Financial were appointed as administrators of Feelin Fruity on July 19, 2018. ONSLOW WORKFORCE: First Creditors' Meeting Set for July 30 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Onslow Workforce and Labour Solutions Pty Ltd will be held at the offices of Auxilium Partners, Level 2, 949 Wellington Street, in West Perth, WA, on July 30, 2018, at 2:00 p.m. Robert Allan Jacobs of Auxilium Partners was appointed as administrator of Onslow Workforce on July 18, 2018. PAYYOURBILLS PTY: Second Creditors' Meeting Set for July 30 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Payyourbills Pty Ltd has been set for July 30, 2018, at 11:00 a.m. at the offices of Veritas Advisory, Level 5, 123 Pitt Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 30, 2018, at 9:00 a.m. David Iannuzzi and Vincent Pirina of Veritas Advisory were appointed as administrators of Payyourbills Pty on June 25, 2018. SIMON MASONRY: Second Creditors' Meeting Set for July 30 -------------------------------------------------------- A second meeting of creditors in the proceedings of: * Simon Masonry Pty Limited; * Simon Masonry (NSW) Pty Ltd; * Simon Masonry Supply Pty Ltd; * SM Group V2 Pty Ltd; and * S Masonry Group Pty Ltd has been set for July 30, 2018, at 11:00 a.m. at Level 27, 259 George Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 27, 2018, at 4:00 p.m. Sule Arnautovic & Amanda Young of Jirsch Sutherland were appointed as administrators of Simon Masonry on June 25, 2018. WAITAN GROUP: High-End Restaurant Collapses Into Liquidation ------------------------------------------------------------ Lucy Macken at Domain reports that five years after the upmarket Waitan Restaurant opened as Chinatown's answer to Justin Hemmes' The Ivy party venue, the doors have closed and liquidators appointed to try to recoup debts of AUD1.3 million. According to the report, the collapse of the high-end restaurant group comes as its director Kai Meng, 49, takes an almost AUD500,000 loss on his Castle Cove home, selling it in an off- market deal for AUD5.5 million. Domain relates that attempts by the liquidator David Kerr -- david.kerr@rsm.com.au -- of RSM Australia, to contact Mr. Meng have proved unsuccessful despite the June sale of his grand six- bedroom residence. However, press reports in China indicate Mr Meng returned to his homeland in May of last year where he is set to make a comeback in the restaurant and catering industry, the report says. Domain notes that the Waitan Restaurant, owned by Australia Xiangeqing Investments, opened in 2013 amid a blaze of publicity after a lavish AUD10 million make-over that included three bars, a dim sum bar, eight private dining rooms, a members-only space and award-winning chef John Rankin at the helm. In late 2013, Fairfax Media reported its success among high-end diners had prompted the sale of eight AUD10,000 memberships giving them access to the VIP rooms, valet parking and the chance to purchase a AUD50,000 six-litre bottle of cognac. However, at the time Chinese President Xi Jinping's austerity drive was already starting to cause headwinds in China's high-end restaurant industry, and Mr Meng's China-based Xiangeqing restaurant chain was no exception, the report notes. As Reuters reported, Xiangeqing posted a net loss of CNY68.4 million in the first quarter of the year, making it just one of many restaurant casualties in the crackdown on Chinese government extravagance, Domain relays. In 2014, the China-based company changed its name to Cloud Live amid reports Mr. Meng planned to take it out of the restaurant trade into cloud computing. According to Domain, Mr. Meng resigned as chairman of Cloud Live the following year after China's Securities Regulatory Commission launched an investigation for suspected violations of securities law. Meanwhile, in Sydney the Waitan Group's directors had all resigned by early 2017, a year before the liquidators were called in, leaving Mr. Meng as the sole director, the report recalls. The Waitan Group's collapse has left outstanding debts worth AUD1.3 million, of which AUD1 million is owed to the tax office and the Office of State Revenue, Domain discloses. WIRE NETWORKS: Second Creditors' Meeting Set for July 30 -------------------------------------------------------- A second meeting of creditors in the proceedings of Wire Networks Pty Ltd has been set for July 30, 2018, at 11:00 a.m. at the offices of Cor Cordis, 'One Wharf Lane', Level 20, 171 Sussex Street, in Sydney NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 27, 2018, at 4:00 p.m. Ozem Kassem and Alan Walker of Cor Cordis were appointed as administrators of Wire Networks on June 25, 2018. ========= C H I N A ========= ROAD KING: S&P Alters Risk Profile to Fair & Affirms 'BB-' ICR -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long-term issuer credit rating on Road King Infrastructure Ltd. (RKI). The outlook is stable. S&P also affirmed its 'BB-' long-term issue ratings on the company's guaranteed senior unsecured notes. RKI develops and manages property projects and operates toll roads in China. S&P said, "We revised our assessment of RKI's business risk profile to fair from weak because we expect the company to sustain its improved margins over the next two years. RKI's profitability strengthened significantly, with the EBITDA margin increasing to 41.6% in 2017, from 28% in 2016. This was mainly due to the company's established low-cost land banks in its robust key markets, particularly the Yangtze delta region (74% of revenue), and steadily increasing high-margin toll income. Our base-case forecast is that RKI's EBITDA margin will be 35%-40% in 2018, given its sizable high-margin unrecognized revenue. "We revised our assessment of RKI's capital structure to neutral from positive because the company's financial flexibility on the disposal of its toll portfolio has diminished. As RKI's debt continues to grow due to its expansion in property development, the company's potential disposal of its toll portfolio--if needed--is no longer sufficient to materially improve its leverage, in our view." The affirmed rating reflects RKI's significant margin expansion, steady sales growth, and some financial discipline. These strengths offset the company's moderately increased leverage during its expansion, and increasing cash flow cyclicality due to the gradually rising share of property development relative to the toll road business. S&P expects RKI's sales to continue to grow steadily by 15%-20% annually in 2018 and 2019, driven by more saleable resources in its established markets. S&P said, "The stable outlook reflects our expectation that RKI is likely to moderately increase its property sales over the next 12 months. We also expect the company to maintain its strong profit margin during this time due to its steady execution of property development and stable income from its toll road business. "We could lower the rating if RKI's debt-to-EBITDA ratio increases to more than 5x on a sustained basis. This could happen if: (1) RKI's revenue growth or gross margin in the property segment is much lower than our expectation due to a severe industry downturn; and (2) the company's debt-funded expansion is more aggressive than our base case. "We could raise the rating if RKI improves the execution of its property sales while maintaining its disciplined approach toward debt-funded expansion. A ratio of debt to EBITDA below 4x on a sustained basis could trigger an upgrade." YIDA CHINA: Fitch Alters Outlook to Stable & Affirms 'B' LT IDR --------------------------------------------------------------- Fitch Ratings has revised the Outlook on China-based business park developer Yida China Holdings Limited to Stable from Positive. At the same time, Fitch has affirmed Yida's Long-Term Foreign-Currency Issuer Default Rating at 'B', and its senior unsecured rating and outstanding senior unsecured notes at 'B' with a Recovery Rating of 'RR4'. The Outlook revision reflects the company's weaker-than-expected sales of property, including residential products and offices, which have slowed its progress in deleveraging. Meanwhile, Yida's recurring income from operating business parks also increased slower than its estimate after the company decided to stop adding new investment properties. The ratings are supported by Yida's sufficient and sound land bank in Tier 2 cities, which supports annual property sales of CNY7 billion-8 billion and development activity of around six years. The company's investment properties provide stable recurring income, which is an additional liquidity buffer. However, the ratings are constrained by high leverage, which Fitch expects to remain at 50%-55% as the company continues to acquire land. KEY RATING DRIVERS Leverage to Remain High: Yida's leverage, as measured by net debt/adjusted inventory (including guarantees to JVs and associates), rose to 52.9% at end-2017 from 50.8% at end-2016 due to weak sales and resumption of land acquisitions after two years of muted purchases. Fitch expects leverage to rise close to 55% in 2018 after Yida completes the acquisition of the Dalian Tiandi project, which comprises offices, residential and commercial properties, from its project partner. Leverage is likely to remain high at 50%-55% in the following two to three years as the company tries to replenish quality residential land in Dalian, where Fitch has seen increasing competition for land from large developers. Yida is also at the initial stage of expansion outside Dalian, to certain Tier 2 cities like Zhengzhou and Changsha, which would also drive up the leverage. Limited Geographic Diversification: Dalian accounts for 80%-90% of Yida's attributable contracted sales of property. Fitch expects the capital city of Liaoning Province to remain the main contributor of contracted sales in the next two to three years because 80% of Yida's land reserve for property development was in the city at end-2017. Yida has started to expand into other cities by tapping its expertise in business park development and operation, but Fitch expects progress to be slow given the long development cycle of such projects. Sales to Recover: Fitch expects the company's sales to recover to CNY7 billion-CNY8 billion in 2018 from CNY5.9bn in 2017, supported by total saleable resources of CNY16.5 billion at end- 2017 and a strong residential market in Dalian. Yida's 2017 attributable sales missed Fitch's estimate of CNY7.6 billion because of a delay in launching presales of its business park project in Wuhan, where prices are capped under strict home- purchase restrictions. Attributable sales have recovered to CNY3.7 billion in 1H18, driven mainly by the newly acquired Dalian Tiandi project as well as the sale of land lots to Longfor Properties Co. Ltd. (BBB/Stable). Leading Business Park Developer: Yida has 16 years of experience in business park development and operation, starting with its first project, Dalian Software Park, in 2002. The company has demonstrated an ability to attract large multinational corporations and reputable local companies to its business parks. Its strong retention rate is reflected by the 94% occupancy rate enjoyed by Dalian Software Park and average occupancy rates of above 80% for mature assets. Its fast-expanding entrusted businesses in 2015-2017 also demonstrates the company's expertise in business park operation. Stable Recurring Business: Fitch estimates recurring income from Yida's own business parks to stabilise at CNY450 million-500 million annually after fully consolidating the Dalian Tiandi project in 1H18. Meanwhile, Fitch expects few, if any, new properties to be added into its investment property portfolio after the company adjusted its strategy to focus on property development. This, along with the contribution from small but growing entrusted business, will generate stable EBITDA interest coverage of 0.2x in the next two to three years (2017: 0.23x). DERIVATION SUMMARY Yida's business profile as a leading regional homebuilder in Dalian and business park developer, with a sufficient and sound land bank to support its property development, is commensurate with a 'B' rating. Yida also has a satisfactory EBITDA margin of above 20%, which is comparable with those of 'BB' rating category peers. Its recurring income from investment property assets, especially from mature office buildings in Dalian Software Park, provides an extra liquidity buffer. However, Yida's limited scale and recurring income, and geographic concentration in Dalian cap its rating at 'B'. Yida's closest peer is China South City Holdings Limited (B/Stable) in terms of contracted sales scale at CNY7 billion, leverage of 50%-55% and a recurring EBITDA interest coverage of around 0.2x. Yida's churn rate is higher than China South City's, though the latter enjoys higher profitability of above 30%. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer - Attributable contracted sales to stay at CNY7 billion- CNY8 billion during 2018-2020. - Land premium accounting for 50% of attributable contracted sales in 2018, and 30% in 2019. - No new investment properties to be added in the next three years; Average occupancy rate for existing investment properties at above 90% in 2018-2020. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - No positive rating action is envisaged for Yida due to its modest scale. Developments That May, Individually or Collectively, Lead to Negative Rating Action - Failure to refinance the company's short-term debt; - Net debt/adjusted inventory of above 55% for a sustained period LIQUIDITY Tight Liquidity: Yida has CNY3.3 billion in available cash, including CNY1.5 billion of unrestricted cash and CNY1.9 billion of restricted cash on hand, which only covered 48% of its short- term debt of CNY6.9 billion as of end-2017. Yida has provided detailed plans to refinance its short-term debt, including rolling over existing secured loans and obtaining additional operation property loans from banks after fully consolidating the Dalian Tiandi project. The disposal of quality assets is another alternative to boost liquidity. However, Fitch has seen narrowing financing channels and rising financing costs for small developers like Yida in the tightening credit environment in China, and would closely monitor the company's refinancing progress. Any failure to refinance the company's short-term debt would have negative impact on the ratings. ========= I N D I A ========= BHUSHAN POWER: NCLAT Allows Lenders to Meet & Finalize Bid ---------------------------------------------------------- Livemint reports that the National Company Law Appellate Tribunal (NCLAT) on July 20 gave a go-ahead to the lenders' meeting of debt-ridden Bhushan Power & Steel, directing them to finalise a bid for the company. Vacating its earlier stay, the appellate tribunal has directed the committee of creditors (CoC) for the company to consider resolution plans submitted by three firms: Tata Steel, Liberty House and JSW Steel, the report says. Livemint relates that the NCLAT has also directed the CoC to call all the three bidders, along with operational creditors and suspended board of directors of Bhushan Power & Steel, to the meeting. "The CoC will call for an urgent meeting to take up the resolution plan for discussion and approval," the report quotes a two-member bench headed by Chairman Justice S J Mukhopadhaya as saying. "The resolution professional, after consulting the CoC, will invite operational creditors and all three applicants will remain present on the date of consideration of the resolution plan," the bench ruled. The suspended board of directors of Bhushan Power & Steel is also allowed to attend the meeting in which the resolution plan will be considered by the CoC, the NCLAT said in its order, Livemint relays. Earlier, on July 17, the tribunal had stayed the meeting of the CoC when it was about to vote for finalisation of the highest bidder for BPSL, the report notes. Livemint adds that the tribunal further said that the CoC will place the selected resolution plan before adjudicating authority, which may approve it, but the plan will not come into effect without prior approval of the NCLAT. The report adds that during the proceedings on July 20, resolution professional Mahendra Kumar Khandelwal tendered an unconditional apology to the tribunal for not following its previous orders to allow representatives of operational creditors to attend the meeting. Moreover, Liberty House has alleged it was not informed about the meeting and on July 11 Khandelwal handed over a 19-page checklist seeking the company's compliance with Section 29A of the Insolvency and Bankruptcy Code (IBC). The section deals with criteria to disqualify bidders, the report states. Earlier, lending banks had rejected the resolution plan submitted by Liberty House citing delay, following which the UK-based group had moved the National Company Law Tribunal (NCLT), Livemint notes. The NCLT had on April 23 directed the lenders, led by Punjab National Bank, to consider the bid submitted by Liberty House. This order was challenged by Tata Steel, another resolution applicant for Bhushan Power & Steel, before the NCLAT, adds Livemint. About Bhushan Power Bhushan Power and Steel Limited manufactures and markets steel products. It offers flat products, such as coated products, galvanized/galvalume, color coated products, cable tapes, and cold rolled products; and long products, including iron making and sponge iron products. The company also provides steel pipes, hollow steel sections, grooved pipes, and carbon steel tubes. Mahendra Kumar Khandelwal was appointed as the IRP in the case under an order passed by the National Company Law Tribunal (NCLT) on July 26, 2017. Bhushan Power, which owes over INR37,000 crore to a consortium of lenders led by Punjab National Bank, was among 12 large companies identified by the Reserve Bank of India against which banks were directed to initiate insolvency proceedings, according to LiveMint.com. Barring Era Infra Engineering Ltd, petitions have been admitted in all other cases, LiveMint.com notes. DHARAMVIR EXPORTS: Ind-Ra Maintains B+ Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Dharamvir Exports Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 20, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1995, Dharamvir Exports is engaged in export of agro products to 25 countries across the European Union, the Middle East, Africa and the Far East. DUGAR OVERSEAS: CRISIL Withdraws D Rating on INR15.7cr Loan ----------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities Dugar Overseas Private Limited (DOVPL) and subsequently withdrawn the ratings at the company's request and on receipt of no-objection certificate from the bank. The rating action is in line with CRISIL's policy on withdrawal of its bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Capex Letter 1.3 CRISIL D (Rating reaffirmed of Credit and Withdrawn) Cash Credit 13 CRISIL D (Rating reaffirmed and Withdrawn) Foreign Letter of Credit 15.7 CRISIL D (Rating reaffirmed and Withdrawn) Term Loan 9.5 CRISIL D (Rating reaffirmed and Withdrawn) Working Capital Term Loan 1.5 CRISIL D (Rating reaffirmed and Withdrawn) Incorporated in 1992, DOVPL is promoted by the Delhi-based Mr Nagraj Dugar and his family members. The company trades in and manufactures confectionery and chocolates. In fiscal 2013, it entered into a manufacturing license agreement with General Candy Company Ltd, Thailand, to manufacture candies under the brand name 'Hartbeat'. It started manufacturing milk toffees under its own brand 'Sapphire' in fiscal 2010. FRISCO GLOBAL: CRISIL Lowers Rating on INR15cr Loan to D -------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Frisco Global Private Limited (FFPL) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4 '. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Bill 13.5 CRISIL D (Downgraded from Purchase 'CRISIL A4') Export Bill 15.0 CRISIL D (Downgraded from Purchase- 'CRISIL A4') Discounting Export Packing 5.0 CRISIL D (Downgraded from Credit 'CRISIL A4') Term Loan 9.6 CRISIL D (Downgraded from 'CRISIL A4') The downgrade reflects a recent instance of delay in principal and interest payment on its working capital limits. Key Rating Drivers & Detailed Description Weakness * Delay in meeting principal & interest obligation: There was instances of delay in interest payment on working capital limits. Strengths * Promoter's extensive industry experience : The promoters have extensive experience of more than 3 decades. The promoters' have built long term rapport with overseas customers which helps FFPL to get repeated orders. FFPL was incorporated in 1980, and acquired in 2010 by Delhi- based Mr. Tarun Jain and his brother, Mr. Ayush Jain, who manage its daily operations. The company manufactures and exports a variety of biscuits to countries in Africa, the Middle Eastern and South Asia. FFPL has a manufacturing facility in Haridwar, Uttarakhand. JAGDISH PRASAD: Ind-Ra Maintains B+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Jagdish Prasad Agarwal's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR10 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR65 mil. Non-fund-based working capital limit maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 8, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Alwar-based Jagdish Prasad Agarwal undertakes civil construction works tendered by the government. KANSARA POPATLAL: CRISIL Maintains B Rating in Not Cooperating -------------------------------------------------------------- CRISIL has been consistently following up with Kansara Popatlal Tibhovandas Metal Private Limited (KCSPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 5.15 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 3.95 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KCSPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KCSPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of KCSPL continues to be CRISIL B/Stable Issuer not cooperating' Incorporated in 1978, KCSPL is promoted by Mr. Bhavesh Mavani and family. This Gandhinagar (Gujarat)-based company manufactures stainless steel products such as coils, sheets, rounds, and pipes. LOOMTEX FABRICS: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Loomtex Fabrics (LOOMTEX) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 4 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of LOOMTEX, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LOOMTEX is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of LOOMTEX continues to be CRISIL B/Stable Issuer not cooperating' Established in 1993, by Mr. Shahnawaz Qureshi, Loomtex is an Ahmadabad based proprietorship firm engaged in manufacturing and trading of shirting and suiting fabrics, dress material, towel and home furnishing material such as bed sheets. M.M. COTTON: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with M.M. Cotton Factory (MMCF) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL B/Stable (ISSUER NOT COOPERATING) Rupee Term Loan 0.37 CRISIL B/Stable (ISSUER NOT COOPERATING) Warehouse 5.00 CRISIL B/Stable (ISSUER NOT Financing COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MMCF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MMCF is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MMCF continues to be CRISIL B/Stable Issuer not cooperating'. MMCF was set up by Mr. Surinder Pal as a proprietorship firm in 2006, and was reconstituted as a partnership concern in 2012. The firm gins and presses cotton at its unit in Malhout district (Punjab). MAHAVIR BUILDERS: CRISIL Maintains B Rating in Not Cooperating -------------------------------------------------------------- CRISIL has been consistently following up with Mahavir Builders (MB) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long 10 CRISIL B/Stable (ISSUER NOT Term Bank Loan COOPERATING) Facility The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MB, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MB is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MB continues to be CRISIL B/Stable Issuer not cooperating'. Set up in 2003 as a partnership entity by Mr. Pravin K Dedhia and his family, MB develops commercial real estate in Hyderabad. MAITRI AND MAITRI: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------------- CRISIL has been consistently following up with Maitri and Maitri Builders and Developers (MMBD) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 10 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MMBD, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MMBD is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MMBD continues to be CRISIL B/Stable Issuer not cooperating' MMBD was setup in 2011 as a proprietorship concern of Mr. Mitesh Chhaganbhai Patel. MMBD is developing a residential complex in Vasind, Thane. The project is expected to be completed by March 2017. MANGANG CONSTRUCTIONS: CRISIL Keeps B Rating in Not Cooperating --------------------------------------------------------------- CRISIL has been consistently following up with Mangang Constructions Private Limited (MCPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 43 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MCPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MCPL continues to be CRISIL B/Stable Issuer not cooperating' Incorporated in 2009 and promoted by Mr. Humane Mutumcha, MCPL conducts civil construction business mainly related to road and building and all kinds of civil and electrical works sectors. The company executes work for PWD of Manipur government, banks and other central government bodies. Mr. y Humane Mutumcha looks after operations. MATSYODARI STEEL: CRISIL Maintains B Rating in Not Cooperating -------------------------------------------------------------- CRISIL has been consistently following up with Matsyodari Steel and Alloy Private Limited (MSAPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 25 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MSAPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MSAPL continues to be CRISIL B/Stable Issuer not cooperating' Mumbai-based MSAPL was incorporated in 1998, and manufactures ingots and billets; the billets production started in April 2014. Mr. Deepak Mittal and family acquired MSAPL in 2001. MBR GROUP: CRISIL Maintains B Rating in Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with MBR Group (MBR) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 50 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MBR, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MBR is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MBR continues to be CRISIL B/Stable Issuer not cooperating' Incorporated in 2011, the MBR group is a real estate infrastructure firm located in Bengaluru. The partnership firm is owned by Mr. M Babu Reddy, Mr. Bharath Babu Reddy and Mr. Sharath Babu Reddy. MUTHUS GOLDEN: CRISIL Maintains B Rating in Not Cooperating ----------------------------------------------------------- CRISIL has been consistently following up with Muthus Golden Rice Products Private Limited (MGRPPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Term Loan 2.2 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MGRPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MGRPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of MGRPPL continues to be CRISIL B/Stable Issuer not cooperating' MGRPPL incorporated on August 8, 2015, mills non-basmati rice from paddy. MGRPPL took over the operations of Sri Ram Modern Rice Mill (SRMRM), a partnership firm. Mr. P Venkatesa Prasadh and Mr. A Perisamy, who earlier were partners in SRMRM, are now MGRPPL's directors. They have been in this line of business since 1976. The company markets its products under the brand, Royal. NAVJIVAN POLYFAB: Ind-Ra Migrates B LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Navjivan Polyfab 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 B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Term loan due on January 22, 2023 migrated to non- cooperating category with IND B (ISSUER NOT COOPERATING) rating; and -- INR20 mil. Fund-based facilities migrated to non-cooperating category with IND B (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 21, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in June 2015, Navjivan Polyfab manufactures fabrics and polypropylene woven bags, woven sacks and polyethylene bags. NAVKAR SUGARS: CRISIL Maintains B Rating in Not Cooperating ----------------------------------------------------------- CRISIL has been consistently following up with Navkar Sugars (NS) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.25 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long 1.75 CRISIL B/Stable (ISSUER NOT Term Bank Loan COOPERATING) Facility The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of NS continues to be CRISIL B/Stable Issuer not cooperating' NS is a proprietorship concern established in 1986 by Mr. Nemichand Mutha. The firm is engaged in trading of sugar. The office of the firm is located in Navi Mumbai. N KUMAR: CRISIL Maintains B Rating in Not Cooperating Category -------------------------------------------------------------- CRISIL has been consistently following up with N Kumar Projects and Infrastructure Private Limited (NKPIPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 65 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NKPIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NKPIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of NKPIPL continues to be CRISIL B/Stable Issuer not cooperating' NKPIPL was set up by Mr. Nandkumar Harchandani in 2010-11 (refers to financial year, April 1 to March 31) to undertake commercial and infrastructure projects. The company is setting up a commercial-cum-hotel complex comprising a 114-room hotel in Nagpur (Maharashtra). The company commenced operations of the 150,000 square-foot shopping complex during 2014. PANIPAT JALANDHAR: CRISIL Raises Rating on INR3646cr Loan to B -------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facility of Panipat Jalandhar NH-1 Tollway Private Limited (PJNTPL) to 'CRISIL B/Stable' from 'CRISIL D' on account of timely debt servicing during last 3 months and improved liquidity position with receipt of part change of scope funds from National Highways Authority of India (NHAI: rated 'CRISIL AAA/Stable'). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 3646 CRISIL B/Stable (Upgraded from 'CRISIL D') CRISIL's rating continues to reflect the good traffic potential supported by strategic location of the project. The rating is, however, constrained by the susceptibility to volatility in traffic volumes and moderate debt protection metrics over the tenure of debt. The name of the company was changed from 'Soma-Isolux NH One Tollway Private Limited' to 'Panipat Jalandhar Nh-1 Tollway Private Limited' in fiscal 2017. Key Rating Drivers & Detailed Description Weakness * Susceptibility to volatility in traffic volumes: Tolling began on October 1, 2015, with receipt of provisional completion certificate for 91.03% of the total project. Currently the project is 96% complete. Monthly toll revenue is around Rs 45 crore, however, the same is exposed to volatility in traffic volumes. Any lower-than-expected toll revenue could result in shortfall in cash flows; hence adversely impacting the company's debt servicing ability. * Modest debt protection metrics over the tenure of debt: The company has received toll collections of Rs 515 crore during fiscal 2018 an increase of 11% of the previous year. However, the company's debt protection metrics over the tenure of debt is expected to be modest, with large back ended repayments. The company has received around Rs 188 crore of change of scope funds from NHAI which has improved its liquidity position. The company is also expecting arbitration claim money of around Rs 30 billion over the medium term, which would remain the key rating sensitivity factor. Strength * Good traffic potential supported by strategic location of the project: The Panipat-Jalandhar road stretch on NH-1 provides connectivity to the northern states. NH-1 is one of the largest projects of NHAI's National Highways Development Project (NHDP) V programme, and crosses various tourist and industrial hubs and connects prominent cities/towns in Punjab and Haryana (Karnal, Ambala, Ludhiana, and Kurukshetra), which provide good economic potential for the road stretch. Furthermore, the Panipat- Jalandhar road stretch has existed for several years, which mitigates the risk of resistance to toll charges. The concession agreement also provides for indexed escalation (linked to wholesale price index) for the entire tenure of the concession. Though there are alternative routes, these are relatively longer, have only two or four lanes, and are in poor condition. PJNTPL's toll income is expected to pick up gradually over the medium term, backed by good traffic potential of the road stretch. Outlook: Stable CRISIL believes that PJNTPL will continue to benefit from its strategic project location. The outlook may be revised to 'Positive' if the toll collection on the stretch is better than expectation, leading to healthy debt protection metrics. Conversely, the outlook may be revised to 'Negative' if lower- than-expected toll collections or additional debt leads to deterioration in debt protection metrics. Incorporated in 2008, PJNTPL is a special-purpose vehicle promoted by the Isolux Corsan group and Soma Enterprises Ltd in the ratio of 61:39. PJNTPL has entered into a concession agreement with NHAI for execution, operation, and maintenance of the project on a build-operate-transfer (BOT) basis. The company has been awarded the right to widen the four-lane Panipat'Jalandhar section of NH 1 to six lanes, to be executed on a BOT-toll basis. The concession period is for 15 years, which includes a construction period of 30 months. The revised project cost of Rs 56.90 billion was funded in a debt-equity ratio of 64:36. The project was delayed by 46 months and it achieved provisional completion certificate on September 30, 2015. PRASHANTI AYURVEDIC: Ind-Ra Ups LongTerm Issuer Rating from 'B+' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Prashanthi Ayurvedic Centre's (PAC) Long-Term Issuer Rating to 'IND BB-' from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR18 mil. Fund-based working capital limits upgraded with IND BB-/Stable rating; and -- INR6.81 mil. (reduced from INR52.5 mil.) Term loan due on March 2019 upgraded with IND BB-/Stable rating. KEY RATING DRIVERS The upgrade reflects an improvement in PAC's revenue and credit metrics, driven by the growing awareness of the Ayurvedic treatment. Its revenue rose to INR73 million in FY18 (FY17: INR55 million). Moreover, its interest coverage (EBITDA/gross interest expenses) improved to 3.4x in FY18 (2.4x) and net leverage (net debt/EBITDA) enhanced to 2.9x (3.9x), respectively, driven by a rise in absolute EBITDA to INR28 million (INR24 million) and a decline in external borrowings due to the scheduled repayment of the long-term loan. The scale of operations continues to be small, and the credit metrics continue to be modest. FY18 financials are provisional. The ratings are supported by PAC's healthy return on capital employed (FY18: 20.0%; FY17: 15.0%) and EBITDA margin levels (39.3%; 44.7%). The margin declined owing to an increase in overhead expenses. The ratings continue to be supported by the proprietor's experience of more than a decade in the Ayurvedic treatment. The ratings, however, continue to be constrained by PAC's tight liquidity position, indicated by a 98% average use of the working capital limits over the 12 months ended June 2018. RATING SENSITIVITIES Negative: Any deterioration in the liquidity position, on a sustained basis, could be negative for the ratings. Positive: A substantial increase in the revenue and an improvement in the credit metrics, on sustained basis, could be positive for the ratings. COMPANY PROFILE Founded by Dr. Giridhara Kaje, PAC is a proprietorship concern that trades Ayurvedic medicines and provides Ayurvedic treatment in Bengaluru, Karnataka. RADHE GIRDHARI: CRISIL Reaffirms B Rating on INR5.6cr LT Loan ------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long- term bank facilities of Radhe Girdhari Cold Storage Private Limited (RGCSPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.3 CRISIL B/Stable (Reaffirmed) Long Term Loan 5.6 CRISIL B/Stable (Reaffirmed) Term Loan 1.8 CRISIL B/Stable (Reaffirmed) The rating reflects RGCSPL's exposure to nascent stage of operations. The rating weakness is partially offset by the benefits that the company derives from its promoters' extensive experience in the agro industry. Key Rating Drivers & Detailed Description Weakness * Nascent Stage of operations: The company is in the nascent stage of operations as reflected by its modest revenue of Rs 2.4 crores in fiscal 2018. Also, RGCSPL is mainly catering to farmers, any delay in collection for the storage facility utilized might postpone the revenue of the company. Strength * Track record and extensive experience of promoters: RGCSPL's promoters have extensive experience in the agro industry for over a decade. The day to day operations are managed by Mr. Randhir Kesari. Outlook: Stable CRISIL believes that RGCSPL will continue to benefit over the medium term from its promoters' extensive experience and its established relationship with its customers. The outlook may be revised to 'Positive' in case the company reports efficient management of farmer credit financing, along with significant ramp up in its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' in case RG reports pressure on its liquidity because of delays in repayments by the farmers, lower-than-expected cash accruals, or undertakes an additional debt-funded capital expenditure programme. Incorporated in 2017, RGCSPL operates a cold storage unit for storing potatoes, with a capacity of 6,000 MT, in the Khagaria district of Bihar. The company also, at times, undertakes trading in potatoes to ensure optimum capacity utilisation of its cold storage unit. It also provides funding to the farmers against the potatoes stored, which is in turn re-financed by the banks. The company was started by Mr. Randhir Kesari. RAMKAMAL CHEMICALS: CRISIL Migrates Rating from B/Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on the bank facilities of Ramkamal Chemicals Private Limited (RCPL) from 'CRISIL B/Stable/CRISIL A4; Issuer not cooperating' to 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Letter of Credit 2 CRISIL A4 (Migrated from 'CRISIL A4 ISSUER NOT COOPERATING') Due to inadequate information, CRISIL, in line with Securities and Exchange Board of India guidelines, had migrated the rating on the bank facilities of RCPL to 'CRISIL B/Stable/CRISIL A4; Issuer not cooperating' through its rationale dated February 21, 2018. However, the management has subsequently started sharing the requisite information for carrying out a comprehensive review of the rating. Consequently, CRISIL is migrating the rating from 'CRISIL B/Stable/CRISIL A4; Issuer not cooperating' to 'CRISIL B+/Stable/CRISIL A4'. The upgrade reflects expected improvement in RCPL's business and financial risk profile backed by improvement in scale and profitability which would lead to increase in cash accrual and reduction in gearing. Continued increase in demand from customers should lead to increase in cash accrual, which will be sufficient to cover fixed debt obligation and incremental working capital requirement. While liquidity is expected to remain adequate, gearing is likely to improve backed by steady accretion to reserves and controlled reliance on external bank debt. The upgrade also factors in CRISIL's belief that the company's working capital cycle and profitability will remain stable over the medium term. The ratings reflect a modest scale of operations in the competitive chemicals industry, and vulnerability of operating margin to fluctuations in raw material prices. These rating weaknesses are partially offset by the extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Revenue is estimated at a modest Rs 26 crore for fiscal 2018. Growth in revenue is expected to be gradual and remain modest over the medium term. * Vulnerability of operating margin to fluctuations in raw material prices: RCPL's raw material costs account for around 70 per cent of its operating revenue, thus rendering its operating margin vulnerable to any changes in raw material prices. Additionally, RCPL limited pricing power with its customers because of intense competition and its small scale of operations, and could only partially pass on price hikes to the customers. Strength * Extensive industry experience of the promoters: RCPL benefits from the extensive experience of promoters in chemical industry. The promoter's acquired RCPL in 2010 and leveraged on their experience and market knowledge to ramp up its operations. Moreover, the company's presence in the chemicals industry has supported its established position in the chemical solvent industry, and enabled healthy business relationships in the value chain with various customers and suppliers. Outlook: Stable CRISIL believes RCPL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of significant growth in revenue and profitability, resulting in improvement in the financial risk profile. The outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, deteriorates because of a decline in cash accrual, a substantial increase in working capital requirement, or any unanticipated debt-funded capital expenditure. RCPL, based in Mumbai, is promoted by Mr Sahabuddin Khan and his brother, Mr Sadruddin Khan, who also manage operations. The company manufactures specialty chemicals, mainly solvents. Its manufacturing facility is at Kurkumbh, in the Pune district of Maharashtra. SHRI RANI: CRISIL Maintains B Rating in Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Shri Rani Sati Foods and Grains Private Limited (SRFGPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 2 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SRFGPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SRFGPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SRFGPL continues to be CRISIL B/Stable Issuer not cooperating. Incorporated in 2009, SRFGPL is engaged in milling of non-basmati parboiled rice. Its manufacturing facility is in Ranchi. Its operations are managed by promoters-directors Mr. Susil Poddar and Mr. Anup Gupta. SHIRAJ TIMBER: CRISIL Lowers Rating on INR25.5cr Loan to D ---------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Shiraj Timber Traders (STT) to 'CRISIL D/CRISIL D/Issuer Not Cooperating' from 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 25.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable') Letter of Credit 14.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4') CRISIL has been consistently following up for information with Shiraj Timber Traders (STT) for obtaining information through letters and emails dated April 26, 2018 and May 18, 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 STT. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for STT is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. CRISIL has downgraded its rating on the bank facilities of STT to 'CRISIL D/CRISIL D/Issuer Not Cooperating' from 'CRISIL B-/Stable/CRISIL A4'. The downgrade reflects delays by the company in servicing debt. CRISIL had discussions with the bank, which has confirmed the delay in repayment. STT was set up as a partnership firm in 1985 by Mr Shirajul-Haque Mohammad and his brothers, Mr Maroof Mohammad and Mr Salim Mohammad. The firm trades in timber. It mainly imports teakwood and hardwood from countries across West Africa and South America. The administrative office is at Mumbai. SHRIRAM INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating ---------------------------------------------------------------- CRISIL has been consistently following up with Shriram Industries and Exports Private Limited (SIEPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 9 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SIEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SIEPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SIEPL continues to be CRISIL B/Stable Issuer not cooperating' Originally incorporated in 1972 as a limited company, SIEPL was reconstituted as a private limited company in September 2013. The company provides warehousing services in Kolkata and also owns two jetties to facilitate export of fly-ash to Bangladesh. It is promoted by Mr. Anand Kumar Agarwal. SREE GURU: CRISIL Maintains B Rating in Not Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Sree Guru Raghavendra Farm (SGRF) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 5 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SGRF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SGRF is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SGRF continues to be CRISIL B/Stable Issuer not cooperating' SGRF, set up as a partnership firm, operates a poultry farm in Davangere (Karnataka) with capacity of 180,000 layer birds. Its operations are managed by Mr. M Ramesh. The promoter family has been in the poultry farming business for over two decades. SREE HARSHA: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with Sree Harsha Automotive Services Private Limited (SHAPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Inventory Funding 7 CRISIL B/Stable (ISSUER NOT Facility COOPERATING) Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SHAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SHAPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SHAPL continues to be CRISIL B/Stable Issuer not cooperating SHAPL was set up in 2005 by Mr. Harshavardhan and Mr. M.R.K. Prasada Rao. The company is an authorized dealer for spares and service provider for trucks and buses of Volvo India Pvt Ltd. It is based in Hyderabad, Telangana. SRI GANESH: CRISIL Maintains B Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Sri Ganesh Steels (SGS) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 2 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SGS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SGS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SGS continues to be CRISIL B/Stable Issuer not cooperating' Established as a proprietorship firm by Mr. Sunkara Vasu in 1995 and based in Vijaywada (Andhra Pradesh), SGS trades in iron and steel scrap. SRI GAYATHRI: CRISIL Lowers Rating on INR5cr LT Loan to D --------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Sri Gayathri Nature Cure Hospital (SGNCH) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable'. The downgrade reflects delays in debt servicing due to weak liquidity. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 5 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B/Stable') CRISIL has been consistently following up for information with SGNCH for obtaining information through letters and emails dated April 26, 2018 and May 18, 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 SGNCH. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for SGNCH is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Set up in March 2017, SGN is a partnership firm setting up a holistic Ayurvedic healthcare and massage centre in the outskirts of Coimbatore. The firm is promoted by the partners, Ms. Motchapriya and Ms Sindujaa. SRI MAHAGANAPATHI: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------------- CRISIL has been consistently following up with Sri Mahaganapathi Cashew Industries (SMCI) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SMCI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SMCI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SMCI continues to be CRISIL B/Stable Issuer not cooperating' Set up in 2014, SMCI processes raw cashew nuts and sells cashew kernels. SMCI currently operates one facility in Mangalore (Karnataka) with an installed capacity of processing 10 tonnes of cashew kernels per day. The operations are managed by the managing partner, Mr. Ganesh Kamath. SRI MURUGAR: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with Sri Murugar Spinning Mill (SMSM) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SMSM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SMSM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SMSM continues to be CRISIL B/Stable Issuer not cooperating' SMSM was set up in 1997 by Mr P V Devaraj and his family. The firm is a synthetic yarn manufacturer with 27,000 installed spindles. SRI SAI LAKSHMI: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL has been consistently following up with Sri Sai Lakshmi Rice Mill (SSLRM) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.65 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Working 5.15 CRISIL B/Stable (ISSUER NOT Capital Facility COOPERATING) Term Loan 1.70 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SSLRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SSLRM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SSLRM continues to be CRISIL B/Stable Issuer not cooperating'. Set up in 2008, SSLRM mills and processes paddy. The operations are managed by the managing partner, Mr. Jyothula Bhimudu. SRI VENKATESWARA: CRISIL Maintains B Rating in Not Cooperating -------------------------------------------------------------- CRISIL has been consistently following up with Sri Venkateswara Rice Mill - Gollaprolu (SVRM) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.95 CRISIL B/Stable (ISSUER NOT COOPERATING) Long Term Loan 1.20 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 1.10 CRISIL B/Stable (ISSUER NOT COOPERATING) SME Credit .25 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SVRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SVRM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of SVRM continues to be CRISIL B/Stable Issuer not cooperating' Set up in 2002 as a proprietorship firm, SVRM is engaged in milling and processing of paddy into rice, rice bran, broken rice and husk. Its rice mill is located in Gollaprolu in East Godavari District of Andhra Pradesh. The firm is promoted by Mr. Gollapalli Tirupathi Rao and his family. SOUTH PARK: CRISIL Migrates Rating from B+/Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of South Park Motor Private Limited (SPM) from 'CRISIL B+/Stable; Issuer Not Cooperating' to 'CRISIL B-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 10 CRISIL B-/Stable (Migrated Overdraft from 'CRISIL B+/Stable'; Facility ISSUER NOT COOPERATING') Electronic 15 CRISIL B-/Stable (Migrated Dealer Financing from 'CRISIL B+/Stable'; Scheme(e-DFS) ISSUER NOT COOPERATING') Due to inadequate information, CRISIL, in line with SEBI guidelines, had migrated the rating of SPM to 'CRISIL B+/Stable; Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of SPM from 'CRISIL B+/Stable; Issuer Not Cooperating' to 'CRISIL B-/Stable'. The rating downgrade reflects weakening of SPM's credit risk profile marked by lower-than-expected operating performance and financial risk profile. Though the revenue has increased in fiscal 2018, company was unable to absorb the expenses and hence resulted in operating loss in the said year. The same resulted in weaker than expected financial risk profile as reflected in the negative networth of Rs. 0.2 crore and negative gearing of less than 20 times. Given the low operating profitability and thereby the cash accretions, improvement in financial risk profile will be gradual and will remain weak over the medium term. The migration reflects sharing of requisite information by the company. CRISIL had, on June 11 2018, migrated the rating to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL B+/Stable' as the client was not cooperating for the rating exercise. SPM has now shared the required information, enabling CRISIL to assign a revised rating to the bank facilities. The rating reflects the company's modest scale of operations with operating losses. The weakness is partially offset by its promoters' extensive experience and funding support. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: The company has been operational only since October 2016, and hence the scale will likely remain modest over the near term. In fiscal 2018, the company booked revenue of around Rs 70 crores. Strength * Promoters' extensive experience and funding support: Promoters, the Mohandas family, also run the South Park group, which has diversified business interests across hospitality, education and pharma sector, apart from auto dealership. They have also infused unsecured loans to support operations. Outlook: Stable CRISIL believes that the SPM will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the SPM's liquidity improves significantly, with sizeable improvement in cash accruals, driven by an increase in its scale of operations. Conversely, the outlook may be revised to 'Negative' if the SPM's financial risk profile deteriorates, because of low cash accruals, substantial increase in working capital requirements, or debt-funded capital expenditure (capex). Incorporated in February 2016, SPMPL, promoted by the Mohandas family, is a part of the South Park group and a dealer of Maruti Suzuki India Pvt Ltd (MSIL) passenger vehicles in Thiruvananthapuram. It has been running one showroom and workshop since October 2016. SRINIVASA RAW: CRISIL Assigns 'B' Rating to INR1cr Cash Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Srinivasa Raw & Par Boiled Rice Mill (SRPBRM). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10 CRISIL A4 (Assigned) Cash Credit 1 CRISIL B/Stable (Assigned) Ratings reflect modest scale of operations and working capital intensive operations. Rating also factors in susceptibility of operating profitability to volatility in raw material prices and to changes in government regulations. These rating weaknesses are partially offset by average financial risk profile, albeit constrained by modest net worth, and extensive industry experience of partners. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations and working capital intensive operations: With revenues and estimated revenues of around Rs.4.0 crore and Rs.7.5-8 crore for Fiscal 2017 and fiscal 2018 respectively, scale of operations remains modest. Scale of operations is expected to increase however should remain modest over the medium term. Operations are working capital intensive as reflected in GCA of 179 days as on March 31 2018. Operations are expected to remain working capital intensive over the medium term. * Susceptibility of operating profitability to volatility in raw material prices and to changes in government regulations: Cost of paddy accounts for 85-90% of the cost of producing rice. Hence, operating profitability is highly susceptible to volatility in paddy prices. Moreover, change in policy pertaining to rice procurement and in other regulations may affect profitability. Strengths * Extensive experience of the partners and established relationships with customers and suppliers: The firm is promoted by Mr. Vallabhaneni Venkatramaiah and five other partners. Partners, over the years, have gained extensive experience in the rice milling business leading to established relations with civil supplies department of Andhra Pradesh state and key raw material suppliers resulting in continuous orders inflow and uninterrupted supply of raw material. * Average financial risk profile: Financial risk profile is average with sub 1 gearing which is expected to remain on similar level over the medium term. Financial risk profile is constrained by modest net worth of 1.5 crore as on March 31 2017. Outlook: Stable CRISIL believes SRPBRM will continue to benefit over the medium term from the industry experience of promoter. The outlook may be revised to 'Positive' in case of an increase in revenue and profitability or increase in net worth, while maintain the capital structure. Conversely, the outlook may be revised to 'Negative' if a larger-than-expected, debt-funded capital expenditure, sharp decline in sales volumes and profitability, or a considerable stretch in working capital cycle, leads to deterioration in the financial risk profile, especially liquidity. Established in 2012, SRPBRM, based in Davuluru, Kankipadu, Krishna (Andhra Pradesh), mills rice. The firm is promoted by Mr Mr. Vallabhaneni Venkatramaiah and five other partners. T.M. MOTORS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated T. M. Motors' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR110 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 14, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE T. M. Motors is a partnership firm that is engaged in the trading of two-wheelers. Its authorized sales-spares-service dealership is in Bharatpur, Rajasthan. TAMIL NAADU: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with Tamil Naadu Edible Oils Private Limited (TNEOPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit 20 CRISIL A4 (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of TNEOPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on TNEOPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the ratings on bank facilities of TNEOPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating. TNEOPL, incorporated in 1989, refines edible sunflower oil. The company is promoted by Mr. Mahavir P Gupta and his family members. TATA POWER: S&P Alters Outlook to Pos. & Withdraws 'B+' ICR ----------------------------------------------------------- S&P Global Ratings revised its outlook on Tata Power Co. Ltd. to positive from stable. S&P said, "At the same time, we affirmed our 'B+' long-term issuer credit rating on the India-based company. We then withdrew the rating at Tata Power's request. The company has no outstanding rated foreign currency debt." S&P said, "The outlook revision reflected our expectation that Tata Power would refinance its debt to significantly alleviate liquidity pressures in the next three to nine months. We expected the company to refinance its external commercial borrowings related to its Mundra project in the next three months, removing the covenant breach. We also anticipated that Tata Power would refinance some of its other short-term debt over the fiscal year ending March 2019 (fiscal 2019). "The positive outlook at the time of the withdrawal also reflected our expectation that the company's ongoing asset sales, stable regulated cash flows, and growth in the renewables segment would help reduce leverage. Tata Power's leverage had risen following the debt-funded acquisition of Welspun Renewables Energy in fiscal 2017. We expected Tata Power's ratio of funds from operations (FFO) to debt to improve to about 9% in fiscal 2019 and above 10% in fiscal 2020, from 7% in the previous year. The company received Indian rupee 21 billion from the sale of its shares in Tata Communications in May 2018, and will use the proceeds to repay debt at Mundra. "The ratings affirmation prior to the withdrawal reflected our view that Tata Power's stable regulated cash flows would offset higher earnings volatility in the company's unregulated segments, particularly in Coastal Gujarat Power Ltd., which owns the Mundra plant. We also expected prudent growth in the company's renewables business with continued solid profitability despite the current competitive bidding environment. We estimated the company's EBITDA margin to be 22%-24% in the next 12-24 months. "We could have upgraded Tata Power if: (1) the company materially refinanced its high short-term maturities; (2) the company eliminated the covenant breach and adopted a prudent capital structure management, with financial policies with less dependence on short-term funding; and (3) the company maintained a ratio of FFO to debt of close to 10% on a sustainable basis and FFO cash interest coverage higher than 2.0x. "We could have revised the outlook to stable if: (1) the company's refinancing efforts were not successful and liquidity pressure continued due to high short-term debt maturities (including working capital); (2) the covenant breach at the Mundra project was not removed and bank relationships weakened; or (3) Tata Power's operating performance deteriorated or it embarked on capital spending or acquisitions that would result in the FFO-to-debt ratio falling below 9% on a sustainable basis and FFO cash interest coverage being less than 1.75x." TM MOTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated TM Motors 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 action is: -- INR120 mil. Fund-based working capital limits migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 14, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2008, TM Motors is engaged in the trading of four-wheelers. TRANS VOLT: CRISIL Maintains B Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Trans Volt Engineering (TVE) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Long Term Loan .41 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 4.09 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of TVE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on TVE is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the rating on bank facilities of TVE continues to be 'CRISIL B/Stable Issuer not cooperating. TVE, established in 2008 as a proprietary firm by Mr. Anirudha Chavan, manufactures radiators for electrical transformers. Its manufacturing facility is located in Pirangut near Pune. UNI PROFILES: CRISIL Maintains B Rating in Not Cooperating ---------------------------------------------------------- CRISIL has been consistently following up with Uni Profiles Private Limited (UPPL) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 5.06 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan .94 CRISIL B/Stable (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of UPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on UPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the ratings on bank facilities of UPPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. UPPL, incorporated in 2010 and set up by Mr. Atul Agarwal, manufactures heavy fabrication and machine components that find application in the heavy engineering, power, steel, and construction industries. Its manufacturing facility is in Rourkela (Odisha). UNITED WIRE: CRISIL Maintains D Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with United Wire Products (UWP) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11.95 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 2.88 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan .17 CRISIL D (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of UWP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on UWP is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the rating on bank facilities of UWP continues to be 'CRISIL D Issuer not cooperating'. UWP, set up in 1994, manufactures several types of mild steel wires such as galvanised wires, earth wires, barbed wires, binding wires, chain-link fencing, stitch wires, and black annealed wires. These products are used by the automobile, construction, and agricultural-based industries, and electricity boards, among others. VJR POULTRY: CRISIL Maintains B Rating in Not Cooperating --------------------------------------------------------- CRISIL has been consistently following up with VJR Poultry Farms (VJRPF) for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Long Term Loan 3.6 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 4.9 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VJRPF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VJRPF is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the rating on bank facilities of VJRPF continues to be 'CRISIL B/Stable Issuer not cooperating'. Established in 2011 as a partnership firm, VJRPF produces broiler chicken and commercial eggs. The firm, which has its manufacturing unit in Hyderabad, is promoted by Mr. Janardhan Reddy and his wife Mrs. Snehalatha. ================= I N D O N E S I A ================= MEDCO ENERGI: Fitch Alters Outlook to Pos. & Affirms 'B' LT IDR --------------------------------------------------------------- Fitch Ratings has revised Indonesia-based oil and gas producer PT Medco Energi Internasional Tbk's Outlook to Positive from Stable and affirmed its Long-Term Issuer Default Rating (IDR) at 'B'. The agency has also affirmed the rating on senior unsecured US dollar notes issued by wholly owned subsidiaries Medco Platinum Road Pte Ltd and Medco Strait Services Pte Ltd, and guaranteed by Medco and several of its subsidiaries, at 'B' with a Recovery Rating of 'RR4'. The Outlook was revised due to Fitch's expectations of an improvement in Medco's financial profile, driven by strong oil and gas prices. Fitch expects Medco's leverage, measured by FFO adjusted net leverage, to decline to less than 4.0x from 2019, compared with a forecast 4.5x in 2018. Medco's EBITDA would benefit from stronger oil prices and better pricing on its new fixed-price gas contracts in 2018. Some of Medco's newer fixed-price gas sales that are scheduled to start in August this year are priced higher than its older gas contracts. As a result, Fitch expects Medco's EBITDA to rise gradually to over USD550 million in 2018 from USD434 million in 2017 and remain above USD500 million throughout its forecast horizon up to 2023, based on Fitch's crude oil price deck assumptions. Medco needs to succeed in its deleveraging efforts in line with its expectations to be rated higher than its current level. Fitch excludes Medco's 88%-owned subsidiary, PT Medco Power Indonesia (MPI), when calculating its FFO adjusted net leverage. KEY RATING DRIVERS Favourable Earnings Mix: Medco derives over 35% of its EBITDA through fixed-price take-or-pay contracts. EBITDA generated from these contracts covered about 1.1x of consolidated interest expense (excluding MPI) in 2017 and Fitch expects this ratio to improve to over 1.5x from 2018. This is a key strength relative to some of its global oil and gas peers rated in the 'B' category in terms of lowering the commodity risks associated with the sector. Gas accounts for about two-thirds of Medco's production volume and is sold through long-term contracts, mainly to investment-grade off-takers. Geographical Concentration: Medco's operations are predominantly based in Indonesia, which exposes it to the associated country risks. The geographical concentration of earnings remains a constraint to most 'B' rated oil and gas producers. However, most of Medco's operations span across seven producing oil and gas concessions, which provide a meaningful level of diversification for its operating risks. Strong Operating Profile: Medco's production volume gradually increased to about 78 mboepd in 2017 from 47 mboepd in 2015 and Fitch expects nominal growth in the next few years. Medco also expects a meaningful production contribution from its Block A gas development in Aceh, scheduled to commence in August this year, which would help the company maintain its production volumes over its forecast horizon. Medco's proved reserve life was more than eight years at end-2017, with a healthy three-year reserve replacement ratio of over 100%. About 76% of Medco's proved reserves are developed, which Fitch views favourably, as it indicates a balanced portfolio of assets. Measures to Improve Leverage: Medco is planning to sell some assets in the next 12 months, which could raise up to USD300 million, including one of its buildings. Fitch has not incorporated the expected asset sales into its forecasts. Medco also expects to raise about IDR2.7 trillion by 2020 from its share warrants. Fitch has only factored in the company raising about USD60 million in 2018 due to its share price currently exceeding the warrants' strike price. Medco also expects to receive USD138 million from the repayment of a shareholder loan it had granted to a holding company of PT Amman Mineral Nusa Tenggara, a 32%-owned associate company. Fitch has not factored this inflow in its forecasts. Power Investment: Fitch considers the risk dynamics of MPI neutral to Medco's credit profile as Medco's investment in the power company falls outside the restricted group structure defined in Medco's bond documentation. Medco has a USD300 million limit on investments outside the restricted group as stated in the documentation, and has a remaining USD90 million as of March 2018. The structure limits potential cash outflows from Medco to MPI or any other investments outside the restricted group. There are also no cross-default clauses linking MPI's debt to Medco. MPI could however be credit positive in the long term after it completes most of its growth and is able to upstream dividends. MPI's business profile is not a concern as it has a relatively diversified earnings mix between geothermal and gas- power generation as well as earnings from the provision of operations and maintenance services to other independent power producers. MPI also has a successful track record of raising funds on its own. Fitch expects MPI's gross debt/EBITDA to be less than 6x from 2018 (7.0x in 2017). DERIVATION SUMMARY Medco's ratings reflect its relatively strong operating profile, mix of earnings generated through fixed-price take-or-pay contracts and bigger scale compared with other 'B' rated exploration and production peers. Its ratings are constrained by its relatively high leverage. Medco's ratings and Outlook are similar to those of Kosmos Energy Ltd. (B/Positive) despite considerably larger production volumes and a stronger cash flow profile due to its earnings mix. This is because Kosmos has lower leverage and its Positive Outlook reflects its improving geographical diversification. The ratings of GeoPark Limited (B+/Stable) are one notch higher than Medco due to its lower leverage. Medco's production scale is larger than that of GeoPark, and it derives more income from long-term fixed-price take-or-pay sales agreements. GeoPark's geographical diversification is better than Medco as GeoPark has operations in Chile, Colombia and Brazil. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer - Production volume of 74 mboepd in 2018 and between 77 mboepd and 80 mboepd from 2019 to 2023 - Brent prices to average USD70 per barrel in 2018, USD65 per barrel in 2019 and USD57.5 per barrel in the long term as per Fitch's oil and gas price deck - Cash production costs to remain at or below USD9/barrels of oil equivalent - Capex of USD250 million-300 million over the forecast horizon Fitch's key assumptions for bespoke recovery include: - The recovery analysis assumes Medco would be considered a going concern in bankruptcy and that the company would be reorganised rather than liquidated. Fitch has assumed a 10% administrative claim. - Medco's going-concern EBITDA is based on the average EBITDA Fitch expects over 2018 to 2023, which is stressed by 30% to reflect the risks associated with oil-price volatility, potential challenges in maintaining production from its maturing fields, and other factors. - An enterprise value multiple of 5.5x is used to calculate a post-reorganisation valuation and reflects a mid-cycle multiple for oil and gas and metals and mining companies globally, which is somewhat higher than the observed lowest multiple of 4.5x. The higher multiple considers that a majority of Medco's production volumes stem from long-term fixed-price and indexed take-or-pay gas contracts, which provide the company with more cash flow visibility across economic cycles than the average global upstream oil and gas production companies. - Fitch has assumed prior ranking debt of USD418 million as well as the USD138 million secured debt at PT Api Metra Graha will be repaid before Medco's senior unsecured creditors, including the investors of its US dollar bonds. Prior-ranking debt includes project-finance debt at non-guarantor subsidiaries PT Medco E&P Tomori Sulawesi and PT Medco E&P Malaka. The recovery analysis also assumes that Medco would fully draw down USD85 million of working capital facilities, the extent allowed under its covenants for the US dollar notes, since working capital debt is tapped when companies are under distress. - The payment waterfall results in a 85% recovery corresponding to a 'RR2' recovery for the unsecured notes. However, Fitch has rated the senior unsecured bonds 'B'/'RR4' because Indonesia falls into Group D of creditor friendliness under its Country- Specific Treatment of Recovery Ratings Criteria, and the instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Fitch may upgrade the ratings of Medco if it is able to maintain FFO adjusted net leverage at less than 4.5x on a sustained basis. Developments That May, Individually or Collectively, Lead to Negative Rating Action - The Outlook may be revised to Stable if Medco is unable to reduce its net leverage as expected by Fitch LIQUIDITY Additional Funding Required: Fitch expects Medco's free cash flows to be broadly neutral to negative due to its capex intensity over the next five years and hence it will continue to require additional funds for its scheduled debt repayments. Medco's debt maturities amount to USD150 million-USD300 million per annum till 2021, with USD400 million of its senior unsecured notes due 2022 and USD500 million in 2025. As of December 2017, the company (excluding MPI) had about USD560 million of readily available cash and up to USD300 million of undrawn bank facilities. Fitch believes Medco's recent track record of tapping capital markets bodes well for its liquidity. The company raised USD900 million from unsecured notes and USD190 million through a fully subscribed rights issue in the last 12 months. ==================== N E W Z E A L A N D ==================== D E MOONEY: In Liquidation; Jeweller Serves Home Detention ---------------------------------------------------------- Belinda Feek at NZ Herald reports that an award-winning jeweller swapped out real diamonds for fakes leaving one couple NZ$60,000 out of pocket and almost ending another couple's marriage plans. They were just two of five victims who fell for Dale Edward Mooney's charm offensive behind the counter at Diamond Jewellers in Hamilton, the report says. NZ Herald relates that the 43-year-old was a convincing picture; he drove a flash car and wore fancy suits. But temptation appeared to get the better of the company director who is currently serving a 12-month home detention sentence after admitting theft and fraud charges while operating Diamond Jewellers in Hamilton. D E Mooney and Company Ltd has now been put into liquidation, NZ Herald discloses. Liquidators currently have the company before the civil court seeking NZ$300,000 for out-of-pocket creditors, according to NZ Herald. According to NZ Herald, the liquidator's report revealed Mooney had withdrawn "significant funds" for personal use. The report also discovered "irregularities" with the company's GST returns. The IRD had been notified. In its short life, Diamond Jewellers built a quick reputation after taking out business of the year in 2014 in the Hamilton Central Business Association Awards. As for his offending, it was anything but scientific. It involved either an up-sell which he failed to deliver on or the swapping out of valuable jewels for cheaper rocks, NZ Herald recalls. In one victim's case, it left her holding a NZ$4000 ring instead of one supposedly worth NZ$92,500. She and her husband paid NZ$60,000 and are yet to get any of the money back. NZ Herald says none of the other victims had seen any money yet either, despite Mr. Mooney being sentenced in the Manukau District Court in June and the judge ordering he pay NZ$90,436 in reparations. Mr. Mooney has moved back to Manurewa, Auckland, where he is serving his home-detention sentence, NZ Herald notes. ================= S I N G A P O R E ================= FORELAND FABRICTECH: Independent Directors Resign ------------------------------------------------- The Strait Times reports that Foreland Fabrictech Holdings has lost all of its independent directors, with only executive chairman Yang Meng Yang left on the board, the company announced on July 20. Seah Chee Wei, Wu Geng and Lim Aik Bin resigned in one fell swoop on July 19, with all of them saying that they left "to pursue other interests". Mr Seah and Mr Wu joined the board in late 2014, while Mr Lim was appointed in November 2017. The Strait Times relates that the latest board announcement, signed by Mr. Yang, said that the company is now looking for new candidates to reconstitute the board and the nominating, remuneration and audit committees, to comply with Singapore regulations. Foreland Fabrictech, which has been suspended from trading since Dec. 27, 2016, said earlier in the week that it does not know how much it owes in a Chinese court case that dates back to 2013. It also faces a legal imbroglio involving former executive chairman Tsoi Kin Chit, whom the company has accused of going rogue with a subsidiary in China despite his resignation in 2016. Foreland Fabrictech said in May 2018 that it "may have lost control" of that subsidiary, Fulian Knitting Co, without full access to its funds. Foreland Fabrictech Holdings Limited manufactures and produces fabrics. The Company's process includes weaving, dyeing, coating, and finishing of fabrics. GLOBAL CLOUD: Fitch Corrects July 5 Ratings Release --------------------------------------------------- Fitch Ratings replaced a ratings release published on July 5, 2018 to include Fitch's "Parent and Subsidiary Rating Linkage" criteria, which was omitted from the original release. The revised release is as follows: Fitch Ratings has affirmed Global Cloud Xchange Limited's (GCX) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'CCC'. The agency has also affirmed the company's USD350 million 7% senior secured notes due 2019, issued by subsidiary, GCX Limited, at 'B-' with a Recovery Rating of 'RR2'. The affirmation reflects high refinancing risk on the secured notes due to continued weak liquidity and persistently negative free cash flow (FCF) as well as the default and break-up of GCX's parent, Reliance Communications Limited (Rcom) which has dented the group's reputation. GCX may face challenges to refinance the notes - which have a current yield to maturity of around 16%-17% - in a timely manner. Fitch expects to review the ratings again by end-September 2018. The notes are rated two notches higher than GCX's IDR due to Fitch's bespoke recovery analysis, which indicates recoveries of between 71%-90% on senior secured notes in a default scenario. The notes are secured by the assets and equity interests of GCX and its key subsidiaries and are guaranteed by GCX and its key operating subsidiaries, which generate most of the group's revenue and EBITDA. KEY RATING DRIVERS Excessive Refinancing Risk: GCX continues to face excessive refinancing risk on its USD350 million secured notes due in August 2019 on persistently negative FCF and a lack of resolution of receivables of USD130 million due from Rcom. GCX's management intends to invite a strategic investor to buy Rcom's part or a full stake in GCX which should help in refinancing the secured notes. However, Fitch has little visibility over such a transaction, which would be subject to approval from Rcom's lenders. Liquidity to Remain Weak: GCX's liquidity is likely to remain weak; Fitch forecasts negative FCF of around USD10-15 million for the financial year ending March 2019 (FY19), as cash flow from operations may fall short of its capex estimate of around USD30 million (FY18: USD30 million). The company pays about USD25 million in cash interest and will face additional cash pressure if it pays a dividend to support USD13 million of loans due at its immediate parent, Reliance Global BV, whose stake in GCX is pledged for the loan. Lower Cash EBITDA: Fitch believes GCX's FY19 cash EBITDA could decline to around USD60 million (FY18: USD76 million) on lower indefeasible right of usage (IRU) sales of around USD50 million (FY18: USD56 million). Fitch expects revenue to fall by around 5%-6% on lower revenue from Rcom and customer churn in the managed services segment where revenue decline by 16% in FY18. However, management expects to achieve higher cash EBITDA, with IRU sales of around USD60 million-70 million in FY19. Non-Payment by Rcom: Fitch believes GCX's working capital outflow will fall to around USD10-15 million in FY19 on lower net sales exposure to Rcom of USD7 million (FY18: USD32 million) following the discontinuation of its services to Rcom's former wireless business. Fitch continues to rate GCX's IDR based on its standalone profile under its Parent and Subsidiary Rating Linkage methodology, as GCX's cash flow is largely ringfenced and dividends to Rcom are subject to an incurrence test of debt/EBITDA of below 3.75x (FY18: 3.10x) and restricted payment covenants. However, GCX is able to pay about USD10million-15 million in annual dividends under the ringfencing conditions. GCX's plan to acquire fibre assets from Rcom for USD130 million is uncertain and subject to approval by Rcom's lenders. Recovery Rating of 'RR2': Fitch rates the USD350 million notes at 'B'-'/'RR2' and use the going-concern value approach to calculate post-restructuring enterprise value, as the liquidation approach is not appropriate since GCX's assets are of little use if dismantled and liquidated. Fitch estimates post-restructuring cash flow of around USD74 million, the same as last year. This assumes the depletion of the current position to reflect the distress that provoked a default and a level of corrective action that Fitch assumes would have occurred during restructuring. Fitch assumes a cash flow multiple of 4.5x, as it believes Rcom may settle for a lower value for GCX in light of its weak liquidity and cash requirements. The adjusted going-concern enterprise value after administrative claims of USD300 million is then applied to the USD350 million secured notes, resulting in an estimated 86% recovery. DERIVATION SUMMARY GCX's 'CCC' IDR reflects Fitch's assessment that the company is exposed to high refinancing risk on its USD350 million secured notes due August 2019. Its liquidity is weak due to persistently negative FCF due to lower cash generation and working-capital outflows related to transactions with Rcom. GCX's business profile is exposed to high execution risk on the successful completion of lumpy IRU sales in FY18-FY19 amid an oversupplied industry that is characterised by frequent price erosion. KEY ASSUMPTIONS Fitch's Key Assumptions within its Rating Case for the Issuer - Revenue to decline by around 5% in FY19. - Cash EBITDA of around USD60 million, with IRU sales of around USD50 million in FY19. - Rcom will not pay for net sales of around USD7 million during FY19. - Annual capex of around USD30 million. RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Visibility on GCX's ability to refinance its 2019 secured notes. Developments that May, Individually or Collectively, Lead to Negative Rating Action - Fitch believes liquidity has weakened to the point where default appears probable, refinancing appears unavailable or liquidity issues are immediate. LIQUIDITY Weak Liquidity: GCX's liquidity is likely to remain weak on negative FCF. Its cash balance improved to USD48 million at end- March 2018 (end-2017: USD32 million), supported by USD56 million of IRU sales. Management is confident of paying its coupon of USD12 million due in August 2018. GCX's committed undrawn facilities of USD30 million expired in September 2017. The company needs a minimum cash balance of USD40 million-50 million to pay its annual interest cost of USD25 million, maintenance capex of around USD20 million and taxes of USD2 million-3 million. HYFLUX LTD: Has $2.95BB in Total Liabilities as of March 31 ----------------------------------------------------------- Grace Leong at The Strait Times reports that Hyflux Ltd has about 50,000 shareholders, bondholders, perpetual securities holders and preference shareholders - and over 60 per cent of them are owed around $1.17 billion in total. Of that amount, $265 million is debt owed to medium-term note (MTN) holders, and $900 million to perp and preference shareholders, Hyflux chief executive Olivia Lum said on July 19. The water treatment specialist's total liabilities stood at $2.95 billion as of March 31, the report discloses. "We still have to do our utmost to ensure that the company stays viable and work towards a viable scheme so everyone will be treated fairly," the report quotes Ms. Lum as saying in her first media appearance since Hyflux filed for court protection to reorganise its debts in May. The main question raised by many of some 200 MTN holders at a townhall on July 19 was whether they will be able to get their money back, and what triggered Hyflux's voluntary filing, group executive vice-president and group chief financial offer Lim Suat Wah said, the report relays. They also wanted an update on the sale of Hyflux's largest asset, Tuaspring integrated water and power plant, proceeds of which will be used to pay back its 29 lenders and other creditors, among other things, according to the Strait Times. "We don't have a restructuring plan to share yet, but the townhall is to keep them informed and help them understand what will happen going forward," the report quotes Ms. Lim as saying. Hyflux management has yet to receive any firm offer for Tuaspring, Ms. Lum, as cited by The Strait Times, said. But there are now eight interested parties - comprising a "good mix" of both foreign and Singapore companies. Some are waiting for approval by water agency PUB before they can start looking at the plant. Some have received it and gained access to Hyflux's dataroom, she added. Binding bids will have to be made by Oct 1. Hyflux's main lender Maybank has given it until Oct. 15 to ink a binding purchase agreement, The Strait Times notes. "We all know that under these conditions when the power market is weak, it is very difficult to get good value. But it also cannot be so unreasonably low that I can't even pay my stakeholders," Ms Lum, as cited by the Strait Times, said. The Strait Times meanwhile reports that Hyflux has signed non- disclosure agreements with 19 interested parties for possible rescue financing. None are its current bank lenders, although it is in discussions with a few banks on rescue financing, Mr Glenn Peters of Ernst & Young Solutions' transaction advisory services said. "Beyond that, we are also in discussions with project finance banks for support to complete projects," the report quotes Mr. Peters as saying. Despite its woes, Ms. Lum said the company has not laid off any of its 2,500 employees. "There were some resignations... but we still need people to execute our projects," she said. She added that most of her clients remain supportive. In the last few weeks, Hyflux secured two projects "despite their knowing we are in a restructuring exercise," the report relays. "So I feel that our business is still very viable . . . We are still wanted despite what we are going through," Ms. Lum added. About Hyflux Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2018, Hyflux Ltd. said that the Company and five of its subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High Court of the Republic of Singapore pursuant to Section 211B(1) of the Singapore Companies Act to commence a court supervised process to reorganize their liabilities and businesses. The Company said it is taking this step in order to protect the value of its businesses while it reorganises its liabilities. The Company has engaged WongPartnership LLP as legal advisors and Ernst & Young Solutions LLP as financial advisors in this process. MARY CHIA: Ordered to Resolve Issues w/ Partner Over Liquidation ---------------------------------------------------------------- Lee Meixian at The Business Times reports that Mary Chia Holdings updated that in its court hearing on July 20, the judge directed it and its Japanese partner to attempt to resolve their differences over the choice of liquidators and the costs, and accordingly adjourned the hearing to Aug 3, 2018. According to the report, Mary Chia's susidiary, Mary Chia Beauty & Slimming Specialist (MCBSS), and Slim Beauty House Co had set up a joint venture called MSB Beauty in 2015, but Slim Beauty House Co in 2016 initiated arbitration proceedings against MCBSS due to a dispute over the joint venture. In July 2017, the Singapore International Arbitration Centre had ordered that MSB Beauty be liquidated, and MCBSS was ordered to pay more than SGD580,000 in damages and costs, the report relates. Last month, Slim Beauty House Co applied for the appointment of Baker Tilly TFW as approved company liquidators, and for the cost of the proceedings be taxed, if not agreed or fixed, and be paid to SBH by MCBSS, Business Times relates. Mary Chia Holdings Limited engages in the provision of lifestyle and wellness services for both women and men at its lifestyle and wellness centers under the Mary Chia (for women), Urban Homme (for men), GO60 (for professionals, managers, executives and businessmen (PMEBs)), Masego (for families), Huang Ah Ma (for tourists and PMEBs), LPG Endermospa (for PMEBs), Scinn Medical Centre and MCU Beautitudes (for medical aesthetics) brands. The Company's segments are Beauty, slimming and spa treatment for women; Beauty, slimming and spa treatment for men, and Investment holding. Its services are categorized into beauty and facial services, slimming services, and spa and massage services. Its ancillary business is in the sale of lifestyle and wellness products under the MU brand at its lifestyle and wellness centers. ********* 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 ***