/raid1/www/Hosts/bankrupt/TCRAP_Public/180801.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, August 1, 2018, Vol. 21, No. 151
Headlines
A U S T R A L I A
CREDICO AUSTRALIA: Second Creditors' Meeting Set for Aug. 8
HOOTERS AUSTRALIA: Placed in Administration Again
POD TRACKERS: Second Creditors' Meeting Set for August 8
NATURE PACIFIC: Second Creditors' Meeting Set for August 6
OROTONGROUP LTD: Court Approves Transfer of Shares to Manderrah
SUN SCJ: Second Creditors' Meeting Set for August 8
WPG RESOURCES: First Creditors' Meeting Set for August 8
I N D I A
AIR INDIA: Seeks Additional Equity From Government to Pay Vendors
APHELION FINANCE: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
BHAGABAN MOHAPATRA: Ind-Ra Affirms BB+ LT Issuer Rating
CARE OFFICE: CARE Lowers Rating on INR65cr LT Loan to D
CHOUDHARY BUILDERS: Ind-Ra Withdraws BB+ Long Term Issuer Rating
GARG INOX: CARE Assigns D Rating to INR110.70cr LT Loan
GHANTA FOODS: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
GREENKO ENERGY: Fitch Hikes LT Foreign Currency IDR to 'BB-'
HARIKISHAN TEJMAL: CARE Lowers Rating on INR22cr Loan to D
HERITAGE LIFESTYLES: Ind-Ra Migrates BB Rating to Non-Cooperating
ITNL ROAD: CARE Lowers Rating on INR40.24cr LT Loan to D
JMJ SWITCH: CARE Migrates D Rating to Not Cooperating Category
KANNU ADITYA: CARE Maintains D Rating in Not Cooperating Category
KAYEM FOOD: CARE Lowers Rating on INR264.20cr LT Loan to D
MAA KALIKA: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
MASTANA FOODS: CARE Keeps D Rating in Not Cooperating Category
MAXIMAA SYSTEMS: CARE Migrates D Rating to Not Cooperating
MINING ASSOCIATES: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
MP BORDER: CARE Lowers Rating on INR552.38cr LT Loan to D
NIIL INFRASTRUCTURES: CARE Moves D Rating to Not Cooperating
NOVELTY ASSOCIATES: Ind-Ra Migrates BB- Rating to Non-Cooperating
OCEAN HEALTHCARE: CARE Lowers Rating on INR13.10cr Loan to D
PALAK FERRO: CARE Lowers Rating on INR6.10cr LT Loan to D
PRITHVI EDIFICE: CARE Migrates D Rating to Not Cooperating
RAJ REGENCY: CARE Assigns D Rating to INR6.61cr LT Loan
RAJASTHAN DRUGS: CARE Lowers Rating on INR19.30cr Loan to D
SARAYA INDUSTRIES: Ind-Ra Maintains 'D' Rating in Non-Cooperating
SARDAR MOTORS: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
SE TRANSSTADIA: CARE Lowers Rating on INR325.65cr Loan to D
SEA BLUE: CARE Migrates D Rating to Not Cooperating Category
SHAH CONSTRUCTION: Ind-Ra Affirms B+ Long-Term Issuer Rating
SHIRAGUPPI SUGAR: CARE Maintains D Rating to Not Cooperating
SHIVANSH DIAMOND: CARE Migrates D Rating to Not Cooperating
SHREE GANESH: CARE Lowers Rating on INR6cr Long-Term Loan to D
SHRI BALAJI: CARE Migrates D Rating to Not Cooperating Category
SHRI VARDHMAN: CARE Lowers Rating on INR26.77cr Loan to D
SIDDHIVINAYAK TIMBER: CARE Migrates D Rating to Not Cooperating
SINGH AUTOMOBILE: Ind-Ra Migrates BB- Rating to Non-Cooperating
SPGV PETROCHEM: CARE Moves D Rating to Not Cooperating Category
SREEDEVI PLASTI: Ind-Ra Maintains D LT Rating in Non-Cooperating
SUMMIT CORPORATION: CARE Migrates D Rating to Not Cooperating
SURAJ UDYOG: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
SURESH ANGADI: CARE Maintains D Rating in Not Cooperating
TIRUPATI BASMATI: CARE Migrates D Rating to Not Cooperating
UTKAL HEALTHCARE: Ind-Ra Assigns 'BB' Rating to INR450MM Loan
VOLT-AGE INFRA: CARE Migrates D Rating to Not Cooperating
I N D O N E S I A
INTILAND DEVELOPMENT: Moody's Assigns B2 CFR, Outlook Stable
M A C A U
SANDS CHINA: Moody's Rates Proposed Sr. Unsecured Notes 'Ba1'
M A L A Y S I A
MAXWELL INT'L: Still Unable to Submit Annual Report
P H I L I P P I N E S
BANGKO BUENA: Monetary Board Orders Bank's Closure
S I N G A P O R E
FOR YOU WEDDING: Caterer Abruptly Shut; Couple Left Stranded
- - - - -
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A U S T R A L I A
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CREDICO AUSTRALIA: Second Creditors' Meeting Set for Aug. 8
------------------------------------------------------------
A second meeting of creditors in the proceedings of Credico
Australia Pty Ltd has been set for Aug. 8, 2018, at 10:30 a.m. at
the offices of Condon Associates Group, Level 6, 87 Marsden
Street, in Parramatta, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 7, 2018, at 4:00 p.m.
Schon Gregory Condon RFD of Condon Associates Group was appointed
as administrator of Credico Australia on July 4, 2018.
HOOTERS AUSTRALIA: Placed in Administration Again
-------------------------------------------------
Business Insider reports that the Australia's branch of the US
restaurant food chain Hooters, known for its female waiters
wearing tight white t-shirts, has been placed into voluntary
administration again.
According to the report, administrators Veritas Advisory said
legacy issues as well as changes in conditions required to meet
working visas has added to challenges in the competitive
hospitality industry.
But the administrators said it's business as usual at the three
Sydney and one Gold Coast restaurants, the report relays.
Business Insider relates that David Iannuzzi and Vincent Pirina,
principals at Veritas Advisory, said they are assessing the
profitability of each restaurant and are working with the American
based parent entity to keep the brand alive.
"The Voluntary Administration process is designed to provide an
independent expert review on the performance of a business with
the view of maximising the return available for all creditors,"
the report quotes Mr. Iannuzzi as saying. "It gives Hooters some
breathing space which in turn helps to stabilise and if necessary,
restructure the business either with the current owner or a new
management team or the opportunity for a sale to another player."
This isn't the first time Hooters has been in administration in
Australia, the report says.
In 2015, five Hooters restaurants in NSW and Queensland entered
voluntary administration, Business Insider recalls.
Deloitte Australia was then appointed to manage the administration
of Hooters restaurants in Penrith, Campbelltown, and the flagship
Parramatta store in NSW as well as stores on the Gold Coast and in
Townsville, the report adds.
POD TRACKERS: Second Creditors' Meeting Set for August 8
--------------------------------------------------------
A second meeting of creditors in the proceedings of POD Trackers
Pty Ltd and Pod Trackers ANZ Pty Ltd has been set for Aug. 8,
2018, at 11:00 a.m. at Level 27, 250 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 Aug. 7, 2018, at 4:00 p.m.
Sule Arnautovic and Amanda Young of Jirsch Sutherland were
appointed as administrators of POD Trackers on July 4, 2018.
NATURE PACIFIC: Second Creditors' Meeting Set for August 6
----------------------------------------------------------
A second meeting of creditors in the proceedings of Nature Pacific
Pty Ltd has been set for Aug. 6, 2018, at 2:00 p.m. at the offices
of David Clout & Associates, Level 3/26 Wharf Street, in Brisbane,
Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 3, 2018, at 4:00 p.m.
David Lewis Clout and Patricia Talty of David Clout & Associates
were appointed as administrators of Nature Pacific Pty Ltd on July
2, 2018.
OROTONGROUP LTD: Court Approves Transfer of Shares to Manderrah
---------------------------------------------------------------
Dean Blake at Inside Retail reports that struggling accessories
retailer Oroton has been given leave by the Supreme Court of
New South Wales to transfer all of the company's issued shares to
Manderrah Pty Ltd at the previously agreed value of nil,
fulfilling part of the Deed of Company Arrangement (DOCA).
The retailer's application was heard on the July 27 and saw no
shareholders or interested parties object, the report says.
According to the report, Oroton deed administrators, Deloitte's
Vaughan Strawbridge and Glen Kanevsky, expect to implement the
DOCA by transferring the shares to Manderrah by August 3, despite
further outstanding conditions remaining.
Inside Retail relates that Mr. Strawbridge believes the DOCA will
"deliver a better outcome compared to other offers received,
including the best possible financial return as well."
"Just as importantly, a recapitalised OrotonGroup business means
continued employment for staff across the operations," Inside
Retail quotes Mr. Strawbridge as saying.
The accessories retailer entered into the DOCA with Manderrah in
April in order to secure the future of the business, which fell
into administration last November due to declining sales and high
rental costs.
An independent expert's report circulated to creditors and
shareholders in July set the company's equity valuation at nil, a
condition of the DOCA.
"The value of equity implied by the selected value range for
OrotonGroup's operating business is below its market
capitalisation on the last trading day prior to the announcement
that the Administrators had been appointed," said the report.
OrotonGroup Limited (ASX:ORL) -- http://www.orotongroup.com.au/
-- is an Australia-based retail company. The Company's segments
include Oroton and Gap brands. The Company is engaged in
retailing and wholesaling of leather goods, fashion apparel and
related accessories under the OROTON brand. It is engaged in
retailing of fashion apparel under the GAP label. It is also
engaged in licensing of the OROTON brand name. The Company
operates over 80 stores across Australia, New Zealand, Singapore,
Malaysia and China. Its Gap brand includes GapKids and babyGap,
and offers wardrobe essentials. Its Oroton sells a range of
products for men and women. Oroton's offerings for women include
bags, wallets, jewelry, beauty, gifts, sunglasses and
accessories. Its offerings for men include bags, wallets,
accessories, apparel, sunglasses and gifts. The Company has a
presence as a multi-channel retailer, including online, first
retail stores, concessions, factory outlets and wholesale for
both owned brand and licensed partnerships.
Vaughan Neil Strawbridge of Deloitte was appointed as
administrators of OrotonGroup on Nov. 30, 2017.
SUN SCJ: Second Creditors' Meeting Set for August 8
---------------------------------------------------
A second meeting of creditors in the proceedings of SUN SCJ Pty
Ltd has been set for August 8, 2018, at 11:00 a.m. at the offices
of Vincents, Level 34, 32 Turbot Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 7, 2018, at 5:00 p.m.
Nick Combis of Vincents was appointed as administrator of SUN SCJ
on July 5, 2018.
WPG RESOURCES: First Creditors' Meeting Set for August 8
--------------------------------------------------------
A first meeting of creditors in the proceedings of:
- WPG Resources Limited;
- Challenger Gold Operations Pty Ltd;
- WPG Securities Pty Ltd;
- Tarcoola Gold Pty Ltd;
- Tunkilla Gold Pty Ltd;
- Southern Coal Holdings Pty Ltd; and
- WPG Gawler Pty Ltd
will be held at Terrace 1, Stamford Plaza, 150 North Terrace, in
Adelaide, SA, on Aug. 8, 2018, at 11:00 a.m.
Brett Lord, Adam Nikitins and Samuel Freeman of Ernst & Young were
appointed as administrators of WPG Resources on July 30, 2018.
=========
I N D I A
=========
AIR INDIA: Seeks Additional Equity From Government to Pay Vendors
-----------------------------------------------------------------
Reuters reports that Air India Ltd. has sought INR21.21 billion
(US$309 million) of additional equity from the government for the
fiscal year 2018-19 to make pending payments to its vendors, a
source at the airline said.
Air India owes about INR18 billion to its vendors, including
lessors and banks that have demanded payment from the beleaguered
airline, after the government's unsuccessful efforts to find a
buyer for its 76 percent stake, Reuters says.
According to Reuters, the airline expects to receive the
additional equity within the next 7 to 10 days after which it will
be able to clear all dues, the source said, adding that this is
above the INR6.5 billion it has already received for the year.
India last month shelved a plan to sell a majority stake in Air
India due to lack of interest from bidders, in the latest setback
in its ambitious efforts to rescue the ailing airline that has
survived for years using taxpayer funds, Reuters recalls.
The government will continue to support the loss-making airline's
financial requirements while it works on alternatives, Junior
Civil Aviation Minister Jayant Sinha had said, without giving a
specific timeline for a new plan, the report adds.
Three banks and two aircraft leasing firms have served default
notices on Air India over the last few weeks, the Business
Standard newspaper reported earlier on July 30, raising concerns
about the state-owned carrier's finances and credit-worthiness,
according to Reuters.
San Francisco, United States-based Wells Fargo Trust Services and
UAE's state-owned Dubai Aerospace Enterprise (DAE) have sent
letters of demand for pending rental payments, the newspaper said,
citing sources, Reuters relays.
A DAE spokesman told Reuters that they were not owed $10 million
by Alliance Air, and that they had not issued a notice of default
to Alliance.
Alliance Air is a unit of Air India that operates regional flights
to smaller towns and cities in India.
Three lenders from a 22-bank consortium have also written to Air
India raising concerns that the company is turning into a non-
performing asset, Business Standard, as cited by Reuters, said.
The three banks are Standard Chartered Bank, Dena Bank and Bank of
India Ltd.
The airline has received a notice from banks for non-payment of
dues that is being looked into by the government, the source
confirmed, adds Reuters.
About Air India
Air India Ltd -- http://www.airindia.com/-- is the flag carrier
airline of India owned by Air India Limited (AIL), a Government
of India enterprise. The airline operates a fleet of Airbus and
Boeing aircraft serving various domestic and international
airports. It is headquartered at the Indian Airlines House in
New Delhi.
As reported in the Troubled Company Reporter-Asia Pacific, The
Times of India said Air India got a breather in the form of
INR1,000-crore equity infusion from the government on March 26,
2014. According to the report, the airline's unending financial
stress had got worse as the Centre had so far given INR6,000 crore
instead of the promised INR8,500 crore for the fiscal. As a
result, AI had to bridge this gap by borrowing money from banks at
11%-12%, which increased its debt servicing burden, the report
said. Before the infusion, the government had injected INR12,200
crore into AI and there was a shortfall in equity to the tune of
INR3,574 crore -- despite the airline meeting most of the
milestone-linked equity targets -- leading to a liquidity crunch,
the report related.
Air India has posted continuous losses since 2007, according to
The Economic Times.
APHELION FINANCE: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Aphelion Finance
Pvt. Ltd.'s (AFPL) Long- Term Issuer Rating at 'IND BB'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR96.27 mil. (reduced from INR150 mil.) Bank loan (term
loan)* affirmed IND BB/Stable rating; and
-- INR200 mil. Cash credit affirmed with IND BB/Stable rating.
*Details in annexure
The affirmation reflects AFPL's small and concentrated franchise,
limited funding sources, majorly unsecured credit products and
limited portfolio performance track record in digital lending
products. The ratings however are supported by continuous capital
infusions by the company's promoters (FY18: INR48.9 million, FY17:
INR4.9 million) and some diversification of funding from two non-
banking finance companies (NBFCs).
The portfolio remains concentrated (over 80% of outstanding
portfolio) in Mumbai and has largely been sourced through
intermediaries and references, exposing it to geographical
concentration risk. The remaining portfolio from digital lending
products is spread across Bangalore, Hyderabad, Chennai, Kolkata
and Delhi and is sourced through partnerships with aggregators and
fin-techs. AFPL is experimenting with these partnerships to extend
its loan distribution network without setting up physical
infrastructure and attempts to gain expertise in such asset
classes and technology.
Profitability remained stable in FY18 while improving marginally,
with net income of INR19.5 million in FY18 (FY17: INR18.3
million), mainly on account of increasing advances. The advances
increased 26% yoy to INR538 million in FY18, on the back of growth
in the unsecured loan segment (27%). Loans disbursed over the last
12-18 months have not seen significant slippages. Hence, AFPL has
seen a decline in its credit costs (FY18: 1.3%, FY17: 1.8%).
However, credit costs over the next couple of years would depend
upon its portfolio performance in new products (tie-up with
finance and technology companies), which are unsecured, short
term, unseasoned and untested.
AFPL's gross NPL ratio remained low and stable at 1.3% at end-FY18
(FY17: 1.3%), majorly because of operating leverage kicking in.
Most of AFPL's loans (FY18: 55%; FY17: 57%) are in the unsecured
personal loan segment, which is considered a riskier segment than
secured loans; however, these loans are at the higher end of the
yield curve (average yield FY18: 24.7%; FY17: 27.5%). The secured
segment include gold loans, loans against insurance policy, loans
against hypothecation, loans against property and loans against
two-wheelers, which constituted 14% of the portfolio in FY18
(FY17: 19%). Ind-Ra believes that performance of these portfolios
would remain key monitorable.
AFPL's capitalization levels have remained steady and comfortable,
with capital adequacy ratio improving marginally to 35.9% in FY18
(FY17: 34.1%). AFPL plans to maintain high capitalization and the
promoters will infuse equity in line with the growth in the
former's advances. Debt to equity ratio remained stable at 2.3x in
FY18 (FY17: 2.3x).
AFPL added new funding lines of INR175 million mainly from non-
banking finance companies (NBFCs) in FY18 in addition to its
existing bank lines. It has now funding from two banks and two
NBFCs as of FY18. Management is looking to increase the number of
banks it has relationships with; however, Ind-Ra believes that
with almost 11 public sector banks under the prompt corrective
action, and others on capital conservation mode, raising
incremental funds from banks for sub-investment grade NBFCs,
including AFPL, may be challenging and hence the asset growth may
be measured.
The ratings continue to be supported by AFPL's promoters' more
than a decade's experience, which has helped it acquire knowledge
and understanding to operate in the unsecured lending space in its
geography.
RATING SENSITIVITIES
Negative: Any significant deterioration in the asset quality,
inability to raise funds or deterioration in short term funding
gap, aggressive loan growth without adequate capital injection
from the promoter could lead to a negative rating action.
Positive: Diversified funding, larger franchise and a significant
improvement in the operating scale, stable loan product offerings,
strengthened systems, processes and compliance, and continued
control over delinquencies without significant dilution of capital
levels and short-term funding gaps could lead to a positive rating
action.
COMPANY PROFILE
AFPL is a Reserve Bank of India registered NBFC that started
operations in 1999, but shifted focus to personal unsecured loans
from 2004. It has diversified into segments such as gold loans and
loans against insurance policies. It operates in Mumbai through a
head office in Mulund.
BHAGABAN MOHAPATRA: Ind-Ra Affirms BB+ LT Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Bhagaban
Mohapatra Constructions and Engineers Private Limited's (BMCEPL)
Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based limits affirmed with IND BB+/Stable
rating; and
-- INR360 mil. Non-fund-based limits affirmed with IND A4+
rating.
KEY RATING DRIVERS
The ratings continue to reflect BMCEPL's small scale of operations
and high geographical concentration. Its revenue was nearly flat
in FY18 at INR426 million compared with INR433 million in FY17 due
to slow execution of work orders. FY18 financials are provisional.
The company's order book is concentrated in only Odisha. As of
June 2018, the order book was INR1,031.98 million (2.4x of FY18
revenue).
The ratings continue to factor in BMCEPL's modest liquidity,
indicated by an average working capital limit utilization of about
96% for the 12 months ended June 2017.
The ratings are supported by average return on capital employed
(FY18: 13%; FY17: 18%) and EBITDA (11.2%; 14.1%) levels. The
decline in the margin was owing to the execution of low-margin
orders.
However, the ratings continued to be supported by the company's
strong credit metrics. Its interest coverage (operating EBITDA/net
interest expense) was 5.4x in FY18 (FY17: 2.7x) and net leverage
(total adjusted net debt/operating EBITDA) was 2.0x (1.5x). The
improvement in the coverage was driven by a proportionately higher
decline in financial cost than the fall in absolute EBITDA.
Meanwhile, the deterioration in the leverage primarily was due to
the fall in absolute EBITDA.
The ratings also continue to be supported by the directors'
experience of more than three decades in the execution of civil
work contracts.
RATING SENSITIVITIES
Negative: Any decline in operating profitability, leading to a
stress on the overall credit metrics, will be negative for the
ratings.
Positive: Any substantial improvement in the scale of operations
and the overall credit metrics will be positive for the ratings.
COMPANY PROFILE
BMCEPL undertakes the execution of civil and mechanical
construction projects, with a primary focus on piling activities.
The company is promoted by Mr. Bhagaban Mohapatra.
CARE OFFICE: CARE Lowers Rating on INR65cr LT Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Care Office Equipment Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 65.00 CARE D; Issuer Not Cooperating;
Facilities Revised from CARE C; Stable
Based on best available
Information
Long-term/Short- 15.00 CARE D/CARE D; Issuer Not
Term Bank Cooperating; Revised from
Facilities CARE C; Stable/CARE A4
Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has sought the monthly Default, if any, (NDS) statement for
the month of March 2018 vide emails dated March 31, 2018, April 3,
2018, April 5, 2018, April 7, 2018, April 12, 2018 and April 18,
2018, for the month of April 2018 vide emails dated April 30,
2018, May 3, 2018, May 8, 2018, May 10, 2018 and May 16, 2018, for
the month of May 2018 vide emails dated May 31, 2018, June 4,
2018, June 6, 2018, June 11, 2018 and June 22, 2018, for the month
of June 2018 vide emails dated June 29, 2018, July 2, 2018, July
4, 2018, July 6, 2018 and July 11, 2018. However, the company has
not submitted NDS for the said months. Moreover, CARE has been
seeking information from Care Office Equipment Limited (COEL) to
monitor the rating vide e-mail communication dated July 17, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on COEL's
bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the ratings assigned to the bank facilities of
COEL takes into account the overdrawing in its working capital
limits for more than 30 consecutive days.
Detailed Description of the Key Rating Drivers
Key Rating Weaknesses
Overdrawing in working capital limits for more than 30 consecutive
days: COEL had forfeited distributorship for Dell's IT products
which contributed a sizeable portion of its total operating income
(TOI). This led to increased stress on liquidity resulting in
overdrawals in its working capital limits for more than 30
consecutive days.
Incorporated in 1998, COEL is a dealer/ distributor of IT hardware
products and consumer electrical/ electronic products and it
operates multi-brand retail outlets for IT hardware and consumer
durable products in Gujarat.
CHOUDHARY BUILDERS: Ind-Ra Withdraws BB+ Long Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Choudhary
Builders Private Limited's Long-Term Issuer Rating of 'IND BB+'.
The Outlook was Stable.
The instrument-wise rating action is:
-- The IND BB+ rating on the INR175 mil. Fund-based working
capital limit is withdrawn.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as the
agency has received no objection certificates from the lenders.
This is consistent with the Securities and Exchange Board of
India's circular dated 31 March 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in February 1985 in Indore, CBPL constructed 0.17
million square feet Chetak Chambers at RNT Marg, Indore, in 1991.
The company has sold an area of 67,000 square feet. The remaining
area is owned by the company and has been fully leased out.
GARG INOX: CARE Assigns D Rating to INR110.70cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Garg
Inox Limited (GIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 110.70 CARE D; ISSUER NOT COOPERATING;
Facilities Assigned
Short-term Bank 82.76 CARE D; ISSUER NOT COOPERATING;
Facilities Assigned
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from GIL to monitor the ratings
vide e-mail communications/letters dated May 18, 2018, June 27,
2018, March 11, 2017, February 21, 2017, February 10, 2017,
January 25, 2017, January 19, 2017 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating.
Further, Garg Inox Limited has not paid the surveillance fees for
the rating exercise as agreed to in its Rating Agreement. The
rating on Garg Inox Ltd.'s bank facilities will continues to be
denoted as CARE D/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above ratings.
The ratings of bank facility of GIL take into accounts ongoing
delays in the debt servicing by the company attributable to
its stressed liquidity position.
Garg Inox Limited (GIL) was incorporated in 1991 and is engaged in
manufacturing and export of steel products which primarily include
stainless steel wire, mild steel wire, galvanized wire, aluminum
alloy wire, zinc wire, amongst others. GIL operates two
manufacturing facilities each at Bahadurgarh, Haryana and Pune,
Maharashtra. The company also has two associate concerns namely
Garg Sales Inc, USA and Garg Sales UK Ltd in USA and Europe,
respectively that look after the export sales and marketing
functions for GIL.
GHANTA FOODS: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Ghanta Foods
Private Limited's (Ghanta) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR100 mil. (increased from INR77 mil.) Fund-based working
capital limits affirmed with IND BB/Stable/IND A4+ rating;
and
-- INR18 mil. Term loan due on October 2017 withdrawn (paid in
full) and the rating are withdrawn.
KEY RATING DRIVERS
The affirmation reflects Ghanta's continued modest credit metrics
and modest scale of operations. Revenue increased at a CAGR of
14.2% to INR842.9 million over FY16-FY18, driven by an increase in
the product portfolio and a stable product demand owing to a
strong brand. Its net leverage (adjusted net debt/operating
EBITDAR) improved to 3.3x in FY18 from 3.6x in FY17, with interest
coverage (operating EBITDA/gross interest expenses remaining
unchanged at 1.9x. The improvement in the leverage was on account
of an increase in absolute EBITDA and a decline in net debt. FY18
financials are provisional.
Ind-Ra expects the leverage to deteriorate in the medium term, as
Ghanta is undertaking a capex to establish a plant with a capacity
of 10,000 metric tons per annum that will replace its existing
facilities. The total project cost is INR317.3 million, which is
being funded by INR150 million in term debt and INR167.3 million
in equity and unsecured loans. However, the agency expects the
coverage to be comfortable during the period on account of a
likely increase in EBITDA owing to the launch of new products.
The ratings continue to reflect Ghanta's tight liquidity,
indicated by an average peak fund-based facility utilization of
99.7% for the 12 months ended June 2018.
The ratings, however, are supported by a healthy EBITDA margin of
8.7% in FY18 (FY17: 9.0%), as return on capital employed was
comfortable at 19.3% (18.4%).
The ratings continue to be supported by Ghanta's established brand
Bambino and strong distribution network across India. Bambino is
nearly a three-decade-old brand.
RATING SENSITIVITIES
Negative: A decline in the revenue and/or the EBITDA margin,
leading to deterioration in the credit metrics, on a sustained
basis, could lead to a negative rating action.
Positive: Any substantial growth in the revenue and/or the EBITDA
margin, leading to an improvement in the credit metrics, on a
sustained basis, will lead to a positive rating action.
COMPANY PROFILE
Established in 1981 by M Kishan Rao, Ghanta foods manufactures
ready-to-cook and ready-to-eat products ranging from spices,
masalas, food mix, sweets, snacks, soup powders, chutney powders
and compounded asafetida.
GREENKO ENERGY: Fitch Hikes LT Foreign Currency IDR to 'BB-'
------------------------------------------------------------
Fitch Ratings has upgraded Greenko Energy Holdings' Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'BB-' from 'B+'.
The Outlook is Stable. The agency has also upgraded the ratings of
Greenko Investment Company's (GIL, subsidiary of Greenko) USD500
million 4.875% senior notes due 2023, which are guaranteed by
Greenko, to 'BB-' from 'B+'/RR4. The proceeds of the notes were
used to refinance assets at operating entities within a restricted
group of companies as defined in the indenture to the note issue.
The upgrade is driven by the continued solid financial support
from Greenko's strong shareholders, GIC (Singapore's sovereign-
wealth fund) and Abu Dhabi Investment Authority (ADIA), which have
also introduced stronger risk-management practices at the company
over the years. Management has also made a commitment towards
deleveraging at an asset level and Fitch expects Greenko to use
the retained cash from its operating assets to reduce associated
borrowings or buy in more assets with only little to no additional
debt.
KEY RATING DRIVERS
Solid Support from Shareholders: Greenko's credit profile is
underpinned by the demonstrated financial support of GIC and ADIA,
which own 64.9% and 16.28% of the company, respectively. The group
raised USD450 million of equity from its parents in June 2018 for
asset acquisitions, the largest single round of capital raising by
a green energy company in India. The latest fund raising brings
GIC and ADIA's cumulatively investment to USD1.3 billion, with GIC
alone putting in USD1 billion since 2015 in four rounds.
The equity injections have not only provided Greenko with the
capital necessary for expansion but also reinforced the commitment
of its parents, in its view. Fitch expects Greenko to retain cash
generated by its existing operating assets in restricted groups,
beyond its contractual requirements, to cut associated debt, and
to continue to rely on additional equity infusions from its
parents to fund the group's capacity expansion plans.
Financial Performance to Improve: Greenko's financial profile may
improve, with leverage, measured by net adjusted debt/operating
EBITDAR, falling to around 4.5x by the end of the financial year
to March 31, 2021 (FY21) from a Fitch estimate of 6.0x at FY19.
However, there is the possibility of Greenko increasing its
investments, leading to a slower deleveraging pace. However,
retaining cash to reduce the debt associated with existing assets
is a more important long-term credit positive for Greenko as the
debt repayment capacity of renewable assets drops with age and the
remaining life of associated power-purchase agreements (PPAs)
shrinks.
Structural Subordination from Restricted Groups: Greenko created
two restricted groups to raise US dollar notes, with capacity of
502MW for GIL and 1,075MW for Greenko Dutch B.V (senior US dollar
notes: BB), which were carved out from its total operational
capacity of 3,545MW. The company also raised bonds in the domestic
market, creating another restricted group with 500MW. The
structural features created through these notes' indentures
restrict the outflow and use of cash generated from these assets,
which are highly free-cash generative, to a degree.
Although management intends to retain more cash at the restricted-
group level, Greenko has the ability, if needed, to tap the cash
within the indenture conditions. Greenko has also raised
sufficient equity ahead of substantial investments, leading to
only a moderate level of debt at the holding-company level. Having
a portfolio of 1.5GW (including the operating assets of Orange
Renewable, which are in the process of being acquired) of well-
diversified unrestricted assets further enhances Greenko's
financial flexibility.
Manageable Construction Risk: Greenko has licenses to develop an
additional 680MW of renewable capacity, subject to the economic
viability of the projects. The completion of the Orange Renewable
acquisition in 2018 will add another 200MW of under-construction
capacity. The company also plans to develop several large-scale
integrated, round-the clock renewable assets combining hydro, wind
and solar with storage technologies outside its existing
portfolio. Fitch thinks the risk associated with these investments
is fairly manageable due to management's strong expertise and
demonstrated record in developing renewable projects. Fitch
expects strong shareholder support in financing these investments.
GIL's Standalone Credit Assessment: Fitch has assessed the
standalone credit quality of the assets under the restricted group
backing GIL's notes at 'B+'. Its 502MW asset portfolio is
moderately diversified across fuel type (wind and hydro, which
have generally more volatile performance than solar) and location
(spread across five Indian states) with a weighted-average
operating history of about two-and-a-half years. Around 70% of
GIL's capacity is contracted with state-owned distribution
companies in India, which have weak financial profiles.
GIL's receivable position improved in FY18 to around 50 days
(FY17: 199 days) as cash receipts from state utilities in
Rajasthan and Sikkim were better than its expectations. However,
Fitch believes a sustained improvement in power generators'
receivable position can only be driven by a structural improvement
in the position of state-owned distribution companies through
adequate tariff hikes and timely reduction of aggregate technical
and commercial losses. Financial leverage, measured by net
adjusted debt/operating EBITDAR, of the restricted group is
estimated at 6.4x by end-FY19. Fitch expects the restricted
group's financial profile to improve over time as cash is
accumulated.
Price Certainty, Volume Risks: The majority of Greenko's assets,
as well as the assets in GIL's restricted group, benefit from
long-term PPAs, which offer tariff visibility. Long-term PPAs
provide protection from price risk but production volume will vary
with seasonal and climatic patterns despite the diversification of
the assets.
DERIVATION SUMMARY
Neerg Energy Ltd (senior US dollar notes: B+/RR4) is a restricted
group with 13 wind and solar-based projects amounting to a total
capacity of 504MW spread across five Indian states. About 20% of
the total capacity is contracted with direct customers while the
balance is signed with weaker state-owned utilities. Fitch thinks
Neerg's EBITDAR net fixed-charge cover will be in line with
Greenko's but Fitch estimates its leverage will be higher.
Greenko's larger scale, diversification, better financial profile
and stronger access to liquidity justify the one-notch difference
in their credit assessments.
Melton Renewable Energy UK PLC (MRE, BB/Stable) has a total
installed capacity of 174MW across the UK including 111MW of
biomass-based power stations and 63MW of landfill gas-based power
plants. There is lower volatility in the biomass business as fuel
cost (40% of total expenses) is partly linked to electricity
prices. However, landfill is in a natural decline with half-life
of around 13 years. The regulatory framework has been less
supportive lately as a climate change levy was removed from 2015
and embedded benefits were removed in June 2017. To compensate,
the company will negotiate a higher tariff but that is due only in
2020 for biomass and 2022 for landfill. About 35% of total revenue
is also exposed to wholesale-price risk under the UK's renewable
obligation scheme with a potentially significant impact on cash
flows. Fitch expects net adjusted debt/operating EBITDAR of around
3x and EBITDAR net fixed-charge cover of about 3.5x in the
financial year ending June 2019, which are better than those of
Greenko. Fitch believes Greenko's better business profile and
solid liquidity attributable to its strong backing from sponsors
compensate for its weaker financial profile relative to MRE to an
extent.
Concord New Energy Group Limited (CNE, BB-/Negative) has 819MW of
wind-based power capacity under operations spread across 20
projects in China. Curtailment risk in China is high though more
of CNE's projects are located in areas with lower curtailment. CNE
faces substantial construction risk as it aims to add 200MW-550MW
of wind capacity per year from 2018-2021. Feed-in tariffs are
stable and its counterparty risk is lower as its revenue stream is
mostly reliant on State Grid Corporation of China (A+/Stable) and
China's Renewable Energy Subsidy Fund. However, CNE's cash flow,
similar to other Chinese wind-power operators, is significantly
affected by the time lag in the receipt of renewable subsidies,
which accounted for 52% of its power revenue in 2017. The subsidy
delay, as well as the time lag between new capacity installation
and grid connection in 2017, caused CNE's leverage to rise to 9.1x
in 2017 from 2.9x a year ago, although Fitch expects the company
to deleverage to below 6x starting 2018 when higher contributions
from 2017's completed capacity can be realised. Overall, CNE has
higher business risk than Greenko; the uncertainty associated with
managing CNE's leverage is reflected in its Negative Outlook.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Projects under construction to commence operations as
scheduled
- Plant load factors in line with historical performance for
hydro assets, 27%-29% for most of its wind assets and around
22% for solar assets
- Electricity tariffs in accordance with PPAs for sale to state
utilities and a moderate increase in tariffs charged to
direct customers
- Average EBITDA margins of 85% over the next four years
- Gradual improvement in average receivable days
RATING SENSITIVITIES
For Greenko Energy Holdings:
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- EBITDAR net fixed-charge coverage of 2.5x or more on a
sustained basis, provided there are no adverse changes to the
shareholding of Greenko or an increase in risk appetite. The fixed
charge includes the cost of foreign-exchange hedging.
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Any shareholder changes that adversely affect the company's
risk profile, including its liquidity and refinancing, risk-
management policies or growth risk appetite
- Weakening in assets' operational or financial performance or
aggressive investments that are not sufficiently supported by
equity, which lead to net leverage, measured by net adjusted
debt/operating EBITDAR, that is higher than 5.5x during the
group's capacity expansion phase
For the US dollar notes issued by GIL:
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- A strengthening of Greenko's credit profile
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- A weakening of Greenko's credit profile
LIQUIDITY
Sufficient Liquidity: Fitch expects Greenko's readily available
cash balance to be about USD490 million at end-FY19. Out of the
total cash balance, USD173 million will be at the two rated
restricted groups of the company. This is against debt maturities
of USD68 million in FY20.
HARIKISHAN TEJMAL: CARE Lowers Rating on INR22cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Harikishan Tejmal & Company (HKTC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short- 22.00 CARE D/ CARE D; ISSUER NOT
Term Bank COOPERATING; Revised from
Facilities CARE B+; Stable/CARE A4
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HKTC to monitor the ratings
vide e-mail communications/letters dated May 30, 2018, June 14,
2018, June 15, 2018, June 18, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the firm has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the
ratings on the basis of the available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating.
The ratings on HKTC's bank facilities will now be denoted as CARE
D/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above ratings.
The revision in the ratings of HKTC takes into account ongoing
delays in servicing of debt obligations.
Detail description of the key rating drivers
Key rating weaknesses
Irregularity in debt servicing: The banker of HKTC has verbally
confirmed delay in debt servicing by the firm.
Bundi (Rajasthan) based Harikishan Tejmal & Company (HKTC) was
formed as a partnership concern by its key promoter, Mr. Tejmal
Nyati along with his family members in 2006. Subsequently, there
was change in the partnership deep and currently, HKTC is
currently owned and managed by Mr Rajesh Kumar Nyati along with
his wife Ms Prerna Nyati in profit & loss sharing ratio of 66:33
respectively.
HKTC since inception has been engaged in the business of trading
of different agriculture commodities including wheat, soyabeen,
sarso, paddy, rice, urad, maize and dhania. Further, it is also
engaged in grading of wheat. The firm procures the agriculture
commodities from local mandis and thereafter supplies to various
processing and end user manufacturing units as well as traders in
Rajasthan, Gujarat and Maharashtra. Moreover, HKTC also supplies
wheat under its own brand name of 'Kisan King.
HERITAGE LIFESTYLES: Ind-Ra Migrates BB Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Heritage
Lifestyles and Developers Pvt. Ltd.'s Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR203.7 million Term loan due on July 2018-March 2021
migrated to Non-Cooperating Category with IND BB (ISSUER
NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 8, 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 1994, Heritage Lifestyles and Developers are
primarily engaged in redevelopment projects. The company has
completed 23 redevelopment projects, with a total saleable area of
more than 2.5 million square feet mainly in the Chembur area.
ITNL ROAD: CARE Lowers Rating on INR40.24cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
ITNL Road Infrastructure Development Company Limited (IRIDCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 40.24 CARE D Revised from
Facilities CARE BBB-; Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating of IRIDCL factors in the ongoing delay
reported by company for its term loan repayment obligation due on
June 30, 2018. As per the management, the nonpayment of debt
obligation due was on account of initiation of project termination
process with authorities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delay in debt Servicing reported by IRIDCL: IRIDCL has
reported, the non-payment of the debt obligation due as on
June 30, 2018 for the bank facilities. Same has also been
confirmed by lenders during our due diligence process.
IRIDCL has also intimated to us that they have initiated the
project termination process with authorities.
ITNL Road Infrastructure Development Company Ltd. (IRIDCL) is a
Special Purpose Vehicle (SPV) floated by IL&FS Transportation
Networks Ltd. (ITNL, rated CARE A-; Negative/ CARE A1) for two-
laning of National Highway (NH-8) from 58.245 km to 177.05 km
(approximately 116 km) on Gomti - Beawar section in the State of
Rajasthan (traversing two districts viz. Ajmer and Rajsamand) on a
Design, Build, Finance, Operate and Transfer (DBFOT) basis. The
Concession Agreement (CA) was executed between Department of Road
Transport and Highways (DoRTH) and IRIDCL on April 1, 2009
for a concession period of 30 years from the declaration of
appointed date (i.e., October 28, 2009). The project achieved
provisional completion (provisional COD) on August 24, 2010 as
against scheduled COD on January 01, 2011, i.e., more than four
months ahead of the schedule, at a cost of INR355 cr.; debt equity
mix of 72:28.
The project involved 2 laning of the existing stretch initially
and subsequent 4 laning thereof on DBFOT basis. As per the
provisions of Concession Agreement, at any time before the 7th
Anniversary of the Appointed Date, IRIDCL may excuse itself from
all the obligations relating Four Laning of the Project and
operate the Two Lane Project Highway for a period of 11 years. In
March 2012, the company received letter of intent from Ministry of
Road Transport and Highways (MoRTH) (earlier known as DoRTH) for
the four-laning of the existing road stretch. Pending declaration
of appointed date for the expansion, the company had already
started mobilizing the site. As on March 31, 2016, IRIDCL has
envisaged completing 4 laning of the project stretch at an
estimated cost of INR1,387 crore (approx. INR11.98 crore per km),
to be funded at a debt: equity ratio of 70:30.
JMJ SWITCH: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of JMJ
Switch Gears Private Limited (JMJ) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 5.12 CARE D; Issuer not cooperating
Short term Bank
Facilities 1.72 CARE D; Issuer not cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from JMJ to monitor the ratings
vide e-mail communications dated April 25, 2017, May 11, 2018,
July 11, 2018 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express an opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on JMJ Switch Gears Private Limited's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of these ratings (including investors, lenders and the
public at large) are hence requested to exercise caution while
using the above ratings.
Detailed description of the key rating drivers
At the time of last rating in April 12, 2017, the following were
the rating strengths and weaknesses:
Key Rating Weakness
Ongoing delay in debt servicing: The banker has confirmed that
there are ongoing delays in interest payment.
JMJ Switch Gears Private Limited (JMJ) incorporated in August,
2013 is promoted by Mr Adaikalasamy along with his friend Mr
Philip Kumar. The company started its commercial operation in
January, 2014. It has been engaged in the business of
manufacturing of electrical products like power control panels,
low-tension & high-tension panels, compact substations with its
sole manufacturing facility located at Bommasandra Industrial
Area, Bangalore. These panels provide backup protection to the
power transformers, generation, capacitor banks and power
distribution.
KANNU ADITYA: CARE Maintains D Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE has been seeking information from Kannu Aditya India Limited
(KAIL) to monitor the rating(s) vide e-mail communications/letters
dated May 18, 2018, February 13, 2018, November 24, 2016, November
29, 2016, November 30, 2016, March 8, 2017 and March 16, 2017 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on KAIL's bank
facilities continues to be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 200 CARE D/CARE D; ISSUER NOT
Facilities COOPERATING
Short-term Bank 75 CARE D; ISSUER NOT COOPERATING
Facilities
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings of the bank facilities of KAIL takes into account
ongoing delays in debt servicing by the company.
Analytical approach: Combined financials of Shri Lal Mahal Limited
(SLML) and Kannu Aditya India Ltd (KAIL) due to similar nature of
operations under the two companies and common promoters and
management.
Lal Mahal Group (SLMG) was established in year 1907. The two main
companies of the group are SLML and KAIL. SLML also has a wholly-
owned subsidiary Lal Mahal Retail Limited. The group is primarily
engaged in milling, processing and selling of rice primarily
basmati rice with four processing plants under SLML, one each in
Delhi, Gujarat, Haryana and Andhra Pradesh with aggregate
installed capacity of 40MT/hr and one rice processing mill under
KAIL located at Kundli (Haryana) of 10 MTPH. It also engages in
trading (both export and domestic) of various agro and non-agro
commodities and also has wind power generation capacity of 12.5 MW
and a gold jewellery manufacturing unit under SLML. SLML and KAIL
are closely-held public limited companies and were incorporated in
May 1997 and March 1999, respectively, by Mr Harnarain Aggarwal.
During FY16, the company derived total operating income of
INR700.40 crore with PAT of INR9.85 crore as against total
operating income of INR621.08 crore and PAT of INR9.69 crore
during FY15. The combined operating income of the group was
INR3654.45 crore and PAT of INR29.03 crore in FY16 as against the
total operating income of INR3,376.76 crore and PAT of INR14.71
crore during FY15.
KAYEM FOOD: CARE Lowers Rating on INR264.20cr LT Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kayem Food Industries Private Limited (KFIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 264.20 CARE D Revised from CARE BBB-;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facility of KFIPL
takes into consideration ongoing delays in debt servicing by the
company due to cash flow mismatches.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing Delays in Debt Servicing: The company has defaulted in
debt servicing due on June 30, 2018 on account of cash flow
mismatches.
Off-take risk associated with Rai plant: The Rai plant has a
limited track record of off-take and FY18 was the first full year
of operations for the plant. KFIPL expected a major portion of its
income to come from the Rai plant during FY18 and onwards.
However, the income from Rai plant was lower than envisaged due to
slower ramp up in orders from existing/new clients. Given the
large capacity of the plant and its limited track record, there
exist a significant off-take risk and given large repayment
liabilities in medium term the slow ramp up in orders is likely to
adversely impact the debt repayments. However, the company is
planning to get its debt refinanced to ease out the cash flows
going forward.
Key Rating Strengths
Experienced promoter and long track record of operations in the
food processing industry: KFIPL has been promoted by Mr. Rakesh
Mahajan, Chairman having experience of over four decades in the
food processing industry. Mr. Mahajan holds a B. Tech degree from
IIT Delhi. Prior to KFIPL, Mr. Mahajan was engaged in food
processing business through a group company named Pan Foods
Limited.
KFIPL has a long track record of operations and has been engaged
in the food processing industry for last three decades. As a
result, KFIPL has developed good relationship with various
customers which are large FMCG MNCs.
Kayem Food Industries Pvt Ltd (KFIPL) was incorporated in 1986 by
Mr. Rakesh Mahajan who is also the Chairman of the company. The
company is engaged in the business of food processing and deals in
various products such as Baby Cereals, Corn Flakes, Chocos, Cereal
Bars, Oat Products, Jams, Tomato Ketchup, Pizza Toppings, Soya
Sauce, Dressings and Sauces, Corn/ Barley/ Cocoa/ Rice Powders and
many other similar products.
MAA KALIKA: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Maa Kalika
Bhandar'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 D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR225 mil. Fund-based limit (Long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 12, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Maa Kalika Bhandar is a partnership firm engaged in the trading of
pulses, sugar and edible oil.
MASTANA FOODS: CARE Keeps D Rating in Not Cooperating Category
--------------------------------------------------------------
CARE has been seeking information from Mastana Foods Private
Limited to monitor the ratings vide e-mail communications/letters
dated May 18, 2018, June 26, 2018, March 11, 2017, March 8, 2017,
March 6, 2017, January 25, 2017, January 18, 2017, January 16,
2017, January 6, 2017, December 19, 2016, December 8, 2016,
December 2, 2016, November 21, 2016, November 18, 2016, November
16, 2016, November 14, 2016, November 4, 2016 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the complete information required for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the ratings on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at fair ratings. Further, Mastana Foods Private Limited has
not paid the full surveillance fees for the rating exercise as
agreed to in its Rating Agreement. The rating on Mastana Foods
Private Ltd.'s bank facilities continues to be denoted as CARE D;
ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 158.28 CARE D; Issuer not cooperating
Short term Bank
Facilities 1.00 CARE D; Issuer not cooperating
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings of the bank facilities of MFPL takes into account
ongoing delays in debt servicing by the company.
Mastana Foods Private Limited (MFPL) was incorporated in 1999 and
is promoted by Dr. Krishan Mohan Mendiratta and Mr. Anil Khurana,
who have experience of more than three decades in manufacturing of
rice from paddy. MFPL is primarily engaged in milling, processing
and selling of rice in the domestic market as well as exports
markets. The company has manufacturing units located in Kaithal,
Haryana with annualized capacities of milling and sorting at 38MT
and 42MT respectively along with Polishing/Fine cleaning at 48 MT
silky as on March 31, 2016.
The company has registered a PAT of INR0.01 crore on a total
operating income of INR489.60 crore during the FY16.
MAXIMAA SYSTEMS: CARE Migrates D Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Maximaa
Systems Limited (MSL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.33 CARE D; Issuer Not Cooperating;
Facilities Based on best available
Information
Short term Bank 2.00 CARE D; Issuer Not Cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from MSL to monitor the ratings
vide e-mail communications/letters dated April 30, 2018, May 2,
2018 and May 8, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the ratings on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The ratings
on MSL's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the delay in debt servicing and
classification of the company's account as Non-Performing Asset.
Detailed Description of Key Rating Drivers
At the time of last rating on April 19, 2017 the following were
the rating strengths and weaknesses (updated for the information
available from Bombay Stock Exchange and banker).
Key Rating Weaknesses
Delay in Debt Servicing: MSL's account has been classified as Non-
Performing Asset by Bank of India on account of ongoing delay in
debt servicing.
Incorporated in 1990, Maximaa Systems Limited [(MSL) originally
established as a partnership firm in the year 1983] listed on the
Bombay Stock Exchange and is engaged in business of manufacturing
and trading of different types of industrial storage systems [i.e.
lockers, cupboards & steel furniture made of CRC sheets & is in
the form of slotted angles, panels of different specifications and
design for storing inventory] and IT services. Further the company
ventured into manufacturing pharmaceutical formulations making
ayurvedic in combination with probiotics.
MINING ASSOCIATES: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Mining
Associates Private Limited's (MAPL) Long-Term Issuer Rating to
'IND BB+' from 'IND BBB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital downgraded with
IND BB+/Stable/IND A4+ rating; and
-- INR180 mil. (increased from INR130 mil.) Non-fund-based
working capital downgraded with IND BB+/Stable/IND A4+
rating.
KEY RATING DRIVERS
The downgrade reflects significant deterioration in MAPL's
operating profitability and credit metrics. Return on capital
employed was 5% in FY18 (FY17: 4%) and EBITDA margins were modest
at 23.59% during FY17 (FY16: 30.71%) and 22.54% during FY18. The
deterioration in margins was on account of the removal of a price
escalation clause from new contracts. Also, the credit metrics
were moderate in FY18, with interest coverage (operating
EBITDA/gross interest expense) falling to 9.57x (FY17: 10.36x,
FY16: 36.25x) and net leverage (adjusted net debt/operating
EBITDAR) increasing to 1.39x (1.00x, 0.66x), due to increased
working capital requirements, leading to higher interest expenses.
FY18 financials are provisional in nature.
The ratings are constrained by the working capital intensive
nature of MAPL's business, marked by an elongated cash conversion
cycle of 1,080 days in FY17 (FY16: 459 days). The agency expects
the working capital cycle to have stretched further in FY18 on the
back of subdued realization of receivables coupled with high
inventory holdings. Ind-Ra believes that inability to efficiently
manage the working capital cycle over the near to medium term
could put further pressure on the credit metrics of the company.
Moreover, the scale of operations has remained small, marked by
overall revenue of INR528.85 million in FY18 (FY17: INR445.49
million).
The ratings are supported by MAPL's directors' experience of over
40 years in the diamond core drilling, non-core drilling, bore
hole drilling, large core drilling, drilling in confined spaces,
holes for scientific investigation, drilling for geo-engineering
investigation.
RATING SENSITIVITIES
Negative: Any further deterioration in the EBITDA margins or an
increase in the working capital cycle, leading to deterioration in
the credit metrics, could lead to a negative rating action.
Positive: An improvement in the net working capital cycle along
with an improvement in the operating profitability and credit
metrics on a sustained basis could lead to a positive rating
action.
COMPANY PROFILE
Incorporated in April 2004, MAPL is engaged in drilling activities
for geotechnical investigations for minerals and gases.
MP BORDER: CARE Lowers Rating on INR552.38cr LT Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
MP Border Check post Development Company Limited (MP Border), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 552.38 CARE D Revised from CARE BBB,
Facilities Negative
Detailed Rationale & Key Rating Drivers
The revision in the rating of MP Border factors in the ongoing
delay reported by company for its term loan repayment obligation
due on June 30, 2018. As per the management, the non-payment of
debt obligation due was on account of initiation of project
termination process with authorities.
Detailed description of the key rating drivers
Key Rating Weaknesses
MP Border has reported the non-payment of the debt obligation due
as on June 30, 2018 for the bank facilities. Same has
also been confirmed by lenders during our due diligence process.
The company has also intimated to us that they have initiated the
project termination process with authorities.
MP Border is a Special Purpose Vehicle, sponsored by IL&FS
Transportation Networks Ltd. (ITNL, rated CARE A-; Negative/ CARE
A1) and Spanco in the ratio of 74:26, (revised from 51:49), to
perform up-gradation, modernization, construction, operation and
maintenance of 24 Border Check Posts (BCPs) and two Central
Control Facilities (CCFs) on Build, Operate and Transfer (BOT)
basis for a period of 12.5 years starting from appointed date i.e.
May 05, 2011. Initial cost of the Project was estimated at
INR1,350 crore, which is being financed in a Debt: Equity ratio of
70:30 comprising Senior Debt of INR945 crore and sponsor
contribution in the form of equity and subordinate debt
aggregating to INR405 crore in the proportion of the shareholding.
Scheduled Project Completion Date (SPCD) was initially planned in
May 2013. However Madhya Pradesh Road Development Corporation
(MPRDC) had extended the SPCD multiple times and finally in the
consortium meeting dated January 2014, extension of SPCD till May
2015 was sought by ITNL which has been approved by the consortium
members. The time overrun is mainly due to lack of availability of
Right of Way (RoW). The company has entered into fixed-price
project development contract with ITNL.
NIIL INFRASTRUCTURES: CARE Moves D Rating to Not Cooperating
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Niil
Infrastructures Private Limited to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Bank
Facilities 50.00 CARE D; ISSUER NOT COOPERATING
Detailed Rationale & Key Rating Drivers
CARE has been seeking information Niil Infrastructures Private
Limited, to monitor the ratings videe-mail communications dated
July 6, 2018, June 21, 2018, June 14, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the firm has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. Further,
Niil Infrastructures Private Limited has not paid the surveillance
fees for the rating exercise as agreed to in its Rating Agreement.
In line with the extant SEBI guidelines CARE's rating on Niil
Infrastructures Private Limited bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on April 26, 2017, the following were
the rating strengths and weaknesses.
Key Rating Weaknesses
Delay in Debt Servicing: There was ongoing dealy in debt servicing
owing to which the account had become NPA.
Nikhil Infrastructures Indus Ltd. was incorporated on October 9,
2007 as a limited company to carry out the real estate development
and is a part of IBD group. On April 7, 2010 the name of the
company was changed to NIIL Infrastructures Limited. Further, on
August 2, 2011 NIIL Infrastructure Limited was converted into
Private Limited, namely NIIL Infrastructures Private Limited. It
was promoted by Mr. VinayBhadauria, who is engineer by
qualification and has rich experience in the logistics and
management at Naval Dockyard, Mumbai of Indian Navy. The promoters
have over a decade long experience in construction of residential
and commercial buildings.
NOVELTY ASSOCIATES: Ind-Ra Migrates BB- Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Novelty
Associates Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the rating
exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR900 mil. Fund-based bank facilities migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)/
IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR120 mil. Long-term loans due on June 2022 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 18, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Novelty Associates is a part of the Novelty group formed by Mr. S
Kartar Singh in 1950. The group owns the famous Novelty sweets in
Amritsar and has interests in the food, automobile and real estate
businesses.
OCEAN HEALTHCARE: CARE Lowers Rating on INR13.10cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ocean Healthcare Private Limited (OHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 13.10 CARE D; ISSUER NOT COOPERATING;
Facilities Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE has conducted the review on the basics of best available
information and had classified OHPL as 'Non Cooperating' vide its
press release dated March 31, 2018 furthermore, CARE's rating on
Ocean Healthcare Private Limited bank facilities will now be
denoted as CARE D; Issuer Not Cooperating. The rating has been
revised on account of ongoing delays in debt serving by the
company.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
Key Rating Weakness
Ongoing delays in meeting of debt obligations: Ocean Healthcare
Private Limited has been facing liquidity issues due to which the
company is unable to service the interest and principal obligation
on term loan facility. There are ongoing delays in serving the
interest and installment in term loan facility.
OHPL was incorporated in 2013 and is currently being managed by Mr
Siddharth Baid and Mr Venkateesh Veera. OHPL is engaged in
manufacturing of pharmaceutical formulations which are available
in multiple dosage forms including tablets, capsules, gels and dry
powder. The company started trial productions in December 2015
with commercial productions from April 2016. The company is
present across various therapy segments including antibacterial,
cardiovascular, anti-diabetic, skin care, nutritionals etc. The
main raw materials for manufacturing capsules are expedient,
Active Pharmaceutical Ingredients (API) and several other acids.
OHPL procures these raw materials from various suppliers located
in Maharashtra, Gujarat and Telangana. OHPL has received necessary
approvals including WHO GMP certification, ISO certification, food
manufacturing license and Tamil Nadu Drug Control Department.
PALAK FERRO: CARE Lowers Rating on INR6.10cr LT Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Palak Ferro Alloys (PFA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.10 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from PFA to monitor the rating
vide e-mail communications/letters dated July 2, 2018, June 27,
2018, June 25, 2018, May 30, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the firm has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating.
The rating on PFA's bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
The rating takes into account the delay in servicing of debt
obligations by the firm.
Detailed description of the key rating drivers
At the time of last rating on March 14, 2017 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Continuous overdrawals in the cash credit facility: As per
interaction with the banker, there are continuous overdrawals
in the cash credit facility availed by the firm.
Incorporated in 2008,PFA, is promoted by Rahul Parwani and is
engaged in manufacturing of ferro alloys and manganese oxides. PFA
products include ferro maganesium, manganese oxide and di-oxide,
silico magnesium, ferro manganese low carbon and others.
PRITHVI EDIFICE: CARE Migrates D Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Prithvi
Edifice Private Limited (PEPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term facility 7.67 CARE D; Issuer Not Cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from PEPL to monitor the rating
vide e-mail communications/letters dated July 3, 2018 and July 4,
2018 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on PEPL's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into accout the delay in servicing of debt
obligations by the company.
Detailed description of the key rating drivers
At the time of last rating on April 20, 2017, the following were
the rating strengths and weaknesses
Key Rating Weaknesses
Ongoing delays in debt servicing: The banker has confirmed that
there are ongoing delays in repayment of principal and
interest payment. Timely repayment of debt is the key rating
sensitivity.
Established in the year 2010, PEPL is a part of Pune based Prithvi
Group and is promoted by Mr. Abhay Kele. The company is primarily
engaged in the real estate development projects. The company has
so far completed four residential projects in Pune with a total
saleable area of 1,07,800 square feet. Prithvi Group was
established in the year 1994 and has presence in a wide range of
activities such as turnkey construction contracts including
construction of tunnel, roads, dams and canals as well it is
engaged in residential and commercial real estate projects.
RAJ REGENCY: CARE Assigns D Rating to INR6.61cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Raj
Regency, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.61 CARE D Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of Raj Regency is
constrained by on-going delays in debt servicing due to stressed
liquidity position of the entity.
Going forward, the ability of the entity to regularize the debt
servicing obligations and timely repayment of debt will be
the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: As reported by the banker, as on
July 7, 2018, there are on-going delays in servicing of term
loans. This apart, there is continuous overdrawal in the cash
credit account for more than 30 days. The delays were due to
stretched liquidity position owing to lower accruals from business
operations and higher dependence on external borrowings.
Partnership nature of constitution: Raj Regency, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Furthermore, partnership firms have restricted access to
external borrowing as credit worthiness of partners would be the
key factors affecting credit decision for the lenders.
Raj Regency was established in September, 2013, as a partnership
entity, however started operation from June 2016 by three partners
namely Smt. Surindar Kaur Bhatia, Mr. Harjeet Singh Bhatia and Mr.
Jasvinder Singh Bhatia. The entity started commercial operation
from April 1, 2016. The entity is currently operating with 50
rooms which include 46 deluxe rooms, 03 presidential rooms and one
honeymoon suits. The hotel also has banquet hall, an air
conditioned multi cuisine restaurant, bar, private dining,
swimming pool and spa. The room rent of the Raj Regency on normal
season is INR3000 per day and INR3500 per day on peak season. The
occupancy rate of the hotel averagely remained at around 25%-30%
throughout the year, which increases to around 50% during peak
season (in the month of October to February). Smt. Surindar Kaur
Bhatia (Partner), Mr. Harjeet Singh Bhatia (Partner) and Mr.
Jasvinder Singh Bhatia (Partner) having around 15 years, 25 years
and 20 years of experience respectively, looks after the overall
management of the entity with adequate support from other team of
experienced personnel.
RAJASTHAN DRUGS: CARE Lowers Rating on INR19.30cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Rajasthan Drugs and Pharmaceuticals Limited (RDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 19.30 CARE D; Issuer not cooperating;
Facilities Revised from CARE B
Short-term Bank 0.50 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from RDPL to monitor the
rating(s) vide e-mail communications/letters dated June 4, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. Further, RDPL has not
paid the surveillance fees for the rating exercise as agreed to in
its Rating Agreement. The rating on RDPL's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).
The revision in the rating of Rajasthan Drugs and Pharmaceuticals
Limited (RDPL) takes into account default in debt servicing and
the company has ceased its operations. The account is NPA as per
the verbal communication with the banker.
Detailed description of the key rating drivers
Key Rating Weaknesses
Default in debt servicing: The banker of the company has confirmed
default in debt servicing of RDPL and the account is NPA due to
stressed liquidity of the company.
Jaipur (Rajasthan) based Rajasthan Drugs & Pharmaceuticals Limited
(RDPL), established in November 1978, is a Joint Sector
Undertaking between the Government of India (GOI; 51.04% direct
shareholding; previously through IDPL: Indian Drugs &
Pharmaceuticals Limited) and Government of Rajasthan (GOR) through
RIICO (Rajasthan State Industrial Development & Investment
Corporation Limited; 48.96% shareholding). RDPL is mainly engaged
in the manufacturing and trading of generic pharmaceutical
formulations largely for supply to Central/State Government Health
Departments and other such entities.
SARAYA INDUSTRIES: Ind-Ra Maintains 'D' Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Saraya
Industries Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the rating
exercise, despite requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR275 mil. Fund-based facilities (long-term/short-term)
maintained in non-cooperating category with IND D (ISSUER
NOT COOPERATING) /IND D (ISSUER NOT-COOPERATING) rating;
-- INR355.85 mil. Term loan (long-term) due on December 2018
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR126 mil. Non-fund-based limit (short-term) maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 20, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Saraya Industries manufactures sugar and rectified spirits,
country liquor and Indian-made foreign liquor.
SARDAR MOTORS: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sardar Motors
(Autowheel) Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR170 mil. Fund-based working capital limit migrated to Non-
Cooperating Category with IND BB+ (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR25 mil. Non-fund-based working capital limit migrated to
Non-Cooperating Category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 18, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Sardar Motors (Autowheel) is an authorized dealer of vehicle
manufactured by Mahindra & Mahindra Limited ('IND AAA'/Stable) and
Honda Motorcycle & Scooter India Pvt Ltd, and has the super
dealership of Samsung Electronics Co. Ltd. in Gorakhpur, Uttar
Pradesh. It has showrooms and workshops across Gorakhpur,
Maharajganj and Kushinagar in Uttar Pradesh. It is headed by Mr.
Preetpal Singh and Mr. Jasvinder Singh Sunny.
SE TRANSSTADIA: CARE Lowers Rating on INR325.65cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
SE TransStadia Pvt. Ltd. (SETST), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 325.65 CARE D Revised from CARE C;
Facilities- Stable
Term Loan
Long term Bank 10.00 CARE D Revised from CARE C;
Facilities- Stable
Non Fund Based
Detailed Rationale & Key Rating Drivers
The revision in ratings assigned to bank facilities of SETST take
into account delays in debt serving of the company due to weak
revenue generation and inadequate cash flows from operations. The
term loan instalments due in the month of June 2018 were cleared
by July 9, 2018 and there were no overdues with any of the
bankers of the company as on July 16, 2018.
Ability of the company to regularize the debt servicing by
improving the revenue generation of the company remains key
rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weakness:
Delays in debt servicing: Due to weak revenue generation and
liquidity profile of SETST, there were instances of delay in the
servicing of debt obligations due in the month of June 2018. The
overdues have been cleared and there are no delays as of date.
SE TransStadia Pvt Ltd (SETS) belongs to 'Setco group' and has
developed multipurpose convertible (indoor & outdoor) stadium
along with sports facility in the vicinity of Kankaria Lake,
Maninagar, Ahmedabad. The multipurpose sports arena consists of
about 14.50 lakh sq.ft. build-up area with 2 basement, 1 ground
and 6 floors. SETS has signed a concession agreement (CA) with
Government of Gujarat (GoG) on June 14, 2012 to develop and
operate a stadium as Public-Private-Partnership project on a
Design, Built, Finance, Own, Operate and Transfer (DBFOOT) basis.
The total concession period is 35 years upto June 2047 which
includes construction period of 3 years.
SEA BLUE: CARE Migrates D Rating to Not Cooperating Category
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Sea Blue
Shipyard Limited (SBS) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.57 CARE D; Issuer not cooperating:
Facilities Based on best available
Information
Short-term Bank 13.00 CARE D; Issuer not cooperating:
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Sea Blue Shipyard Limited
to monitor the rating vide e-mail communications/ letters dated
May 1, 2018, May 11, 2018 and May 17, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the rating.
In the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of publicly available information which however, in
CARE's opinion is not sufficient to arrive at fair rating. The
rating on Sea Blue Shipyard Limited's bank facilities will now be
denoted as CARE D; Issuer not cooperating/CARE D; Issuer not
cooperating ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
Key Rating Weakness
Ongoing delays in servicing of debt obligations: There are ongoing
delays in the debt servicing of working capital and term loan
facilities. Bank guarantees issued by SBS were also invoked. The
delay in debt servicing is a result of the delay in collection of
receivables. Normally a small ship building process takes around
18 months to complete and the payment is received stage wise from
clients. For manufacturing and sale of products, SBS follow stage
wise payment for projects with long tenure. Once the bill is
raised its takes an average of 60 days tenure for collection from
government entity and 30 days tenure from private entity. At
times, the collection goes beyond 60 days from government entity
due to inspection and delay in passage of bills. Due to long
tenure and delay in payment of bills raised has resulted in
elongation of average collection period which was 163 days in FY15
(refers to the period April 1 to March 31). As on March 31, 2015,
out of the total debtors, 24% were due for more than 180 days.
SBS follows Just-in-time (JIT) mechanism for ship building and
manufacturing of goods, however the company is required to hold
minimum set of inventory required for ship repair and other
services, where the average inventory period stood at 102 days in
FY15.
Key Rating Strengths
Experienced promoter in ship building industry: The promoters have
good experience in ship building and repairing industry. Mr. OC
John, Promoter and Managing Director, is a post graduate in
commerce and a graduate in law. He joined a ship building and
repairing firm in Kochi in 1983 and resigned from the firm in 2002
as Chief Executive Officer and promoted SBS in 2003 along with
four other technocrats. Mr. E Tojen, promoter and director, is a
marine engineer by profession, has 21 years of experience in
shipping industry and merchant navy. Capt Ruskin A Thomas,
promoter and director, is a master mariner, and has 20 years of
experience in this industry. Mr. Santosh Abraham, promoter and
director, is a Bachelor in Engineering, manages quality, health
safety and environmental function of an upcoming large industrial
estate in Dubai, UAE. Some of the key management personal of SBS
are Mr. Jilish G Kanippilly (Director HR & IT), Mr. P.G. Vinayan
(Chief Finance Officer), Ms. R. Raji (Company Secretary).
SBS incorporated on December 08, 2003, is promoted by Mr. OC John
and is engaged in ship building and ship repairs activities.
Initially the company was established under the name of Sea Blue
Marine Engineering (Pvt.) Ltd. and later converted into a Public
Limited Company in 2009, with its new name SBS.
SBS operates from a yard located at Vypin (Kerala) and a branch
office in Goa. It undertakes contractual work of public sector as
well as private sector agencies operating in the Western region.
SBS is registered with Indian Coast Guard for undertaking repairs
of their vessels.
SBS has three licensed slipways, capable of hauling up vessels up
to 3000 deadweight tonnage (DWT). SBS has berthing facilities for
ships up to 115m. It provides afloat repairs of medium sized
vessels and also provides shelter to vessels during off season
especially to those vessels plying between Kochi and Lakshadweep
Islands. The total length of the wharf is 115m with a draft of
above 6m.
In FY17, SBS had a net loss of INR0.46 crore on a total operating
income of INR8.95 crore, as against net loss and TOI of INR0.47
crore and INR10.03 crore respectively, in FY16.
SHAH CONSTRUCTION: Ind-Ra Affirms B+ Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed D.R. Shah
Construction Co.'s (DRS) Long-Term Issuer Rating at 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based facilities affirmed with IND B+/Stable
rating; and
-- INR30 mil. Non-fund-based facilities affirmed with IND A4
rating.
KEY RATING DRIVERS
The affirmation reflects DRS' continued small scale of operations
as indicated by revenue of INR146 million in FY18 (FY17: INR129
million) driven by an increase in orders. As of mid-July 2018, it
had an order book of INR120 million (1.0x of FY18 revenue) to be
executed by May 2019. The firm's return on capital employed was
10% and EBITDA margin was modest at 7.4% in FY18 (FY17: 6.5%). The
improvement in the margins is attributed to a decline in operating
expenses. FY18 financials are provisional in nature.
Despite an improvement in net leverage (adjusted debt net of
cash/EBITDA) to 7.6x in FY18 (FY17: 8.7x) and EBITDA interest
coverage (operating EBITDA/gross interest expense) to 1.2x (1.0x),
the credit metrics remained weak. The improvement was due to a
rise in operating EBITDA to INR11 million in FY18 (FY17: INR8
million).
The ratings also factor in DRS' modest liquidity position as
indicated by 80% average maximum utilization of the working
capital limits during the 12 months ended June 2018. Net cash
conversion cycle elongated to 288 days in FY18 (FY17: 190 days)
owing to an increase in receivable and inventory days.
The ratings remain constrained by geographical concentration risks
as all its projects are executed within Mumbai for Maharashtra
Housing and Area Development Authority and Municipal Corporation
of Greater Mumbai.
The ratings, however, are supported by the company's founder's
experience of over three decades in the civil construction
industry.
RATING SENSITIVITIES
Negative: An overall deterioration in the credit profile will be
negative for the ratings.
Positive: A substantial improvement in the revenue while
maintaining the operating profitability, leading to a sustained
improvement in the credit metrics will be positive for the
ratings.
COMPANY PROFILE
Incorporated in 1982 by Mr. Dalichand Shah, DRS is a civil
contracting company that undertakes maintenance services for
hospitals, schools and residential buildings for government bodies
in Mumbai.
SHIRAGUPPI SUGAR: CARE Maintains D Rating to Not Cooperating
-------------------------------------------------------------
CARE has been seeking information from Shiraguppi Sugar Works
Limited (SSWL) to monitor the rating(s) vide e-mail communications
dated May 3, 2018, June 22, 2018, July 11, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
Also, the Company has not been submitting the No Default
Statement. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on Shiraguppi Sugar Works
Limited's bank facilities continues to be denoted as CARE D;
ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 196.16 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short term Bank 0.37 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays by the company: The Company had been delaying the
repayments on its debt facilities due to cashflow mismatch
leading to liquidity issues. CARE is unable to ascertain the
current status of debt repayment.
Shiraguppi Sugar Works Limited (SSWL) was incorporated in May 1995
by Mr. Kallappa Parisa Magennavar. The company had obtained the
license to establish sugar factory in the year 1998 itself,
however the project remained dormant till year 2005 due to delay
in financial closure and lack of sufficient funds towards land
acquisition. In year March 2006, Doddanvar Brothers took over 95%
shareholding in the company. Post financial closure and land
acquisition in year 2010, SSWL commenced project implementation
activities and commenced operations at 5000 TCD sugar mill and 20
MW cogeneration unit from October 2012 onwards (i.e. sugar season
(SS) 2012-13) at Athani, Dist Belgaum, Karnataka.
SHIVANSH DIAMOND: CARE Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Shivansh
Diamond Private Limited (SDPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 47.00 CARE D; Issuer Not Cooperating;
Facilities on the basis of best Available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information/NDS from SDPL to monitor the
ratings vide e-mail communications/ letters dated July 4, 2018,
June 22, 2017, & May 18, 2018, and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The ratings
on SDPL's bank facilities continue to be denoted as CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
The ratings of the bank facilities of SDPL takes into account
ongoing delays in debt servicing by the company.
SDPL was established as a proprietorship form named as M/s
Shivansh by Mr.Ashutosh Sharma in 1998. This was later converted
into a private limited company in January, 2010 promoted by
Mr.Ashutosh Sharma and Mrs. Gunjan Garg. SDPL is engaged in whole-
selling and retailing of diamond and studded gold jewellery. The
company in October, 2012 started its retail operations from its
Karol Bagh showroom. SDPL gets most of its jewellery manufactured
on job work basis from Mumbai based jewellery makers.
SHREE GANESH: CARE Lowers Rating on INR6cr Long-Term Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Ganesh Cold Storage (SGCS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE D Revised from CARE B;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
SGCS is primarily due to irregularity in servicing its debt
obligations owing to weak liquidity position.
Establishing a clear debt servicing track record with improvement
in the liquidity position remains the key rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delay in debt servicing: There are on-going delays in debt
servicing. There was irregularity in interest payment for
overdraft facility.
Established in 1999 as a partnership firm, SGCS is engaged into
providing cold storage facility to farmers for storing
potatoes on a rental basis. The firm has controlled atmosphere
cold storage facility located at Deesa; Gujarat having a
capacity to store 8,250 Metric Tonne (MT)/1,65,000 bags of
potatoes as on March 31, 2018. The firm is managed by Mr.
Popatlal Chamanaji Kachhawa, Mr. Kalidas Chamanaji Kachhawa and
Mr. Lalabhai Chamanaji Kachhawa. Besides providing cold storage
facility, the firm also provides interest bearing advances to
farmers for potato farming purposes against the stock of potato
stored.
SHRI BALAJI: CARE Migrates D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Shri
Balaji Sahakari Soot Girni Limited (SBSSG) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.18 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SBSSG to monitor the
ratings vide e-mail communications/letters dated May 28, 2018,
June 4, 2018, June 6, 2018, June 11, 2018 June 29, 2018, July 4,
2018 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on SBSSG's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account the ongoing delays in debt servicing
of its bank facilities.
Detailed description of the key rating drivers
At the time of last rating on May 2, 2017 the following was the
rating weakness:
Key Rating Weaknesses
Ongoing delays in debt servicing: The society was unable to meet
its principal repayment on account of stressed liquidity
conditions resulting from lower profitability. The society has
been reporting deficit since commencement of business operations.
Moreover, the funds infused by the trustees are invested in the
fixed assets for setting up the unit. Furthermore, the funds have
also been blocked in the inventory as the society has been
maintaining high inventory on account of seasonal nature of
business operations leading to stretch liquidity position of the
society.
SBSSG was established as a co-operative society on January 21,
1991, but commenced commercial operation from May 25, 2011
onwards. SBSSG is engaged in cotton spinning through open end
spinning method with an installed capacity of 6,624 spindles for
manufacturing of cotton yarn with end-user industries being power
loom companies situated in and around the area of Washim,
Maharashtra.
SHRI VARDHMAN: CARE Lowers Rating on INR26.77cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shri Vardhman Rice Mills Private Limited (SVRM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 26.77 CARE D; Issuer not cooperating;
Facilities Revised from CARE B; Issuer Not
Cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SVRM to monitor the rating
vide email communications/letters dated July 6, 2018, June 22,
2018, May 28, 2018, May 2, 2018 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In the absence
of minimum information required for the purpose of rating, CARE is
unable to express opinion on the rating. In line with the extant
SEBI guidelines CARE's rating on Shri Vardhman Rice Mills Private
Ltd.'s bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in ratings of the bank facilities of SVRM takes into
account ongoing delays in debt servicing by the company.
SVRM was initially incorporated as CSJ Organics Private Limited in
March 2009 by Mr Ram Bhaj Jain, and later on its name was changed
to SRML. Till March 31, 2013, the company was not operational and
on April 01, 2013, the company took over the existing business of
Shri Vardhman Rice Mills (a partnership firm established in 2010).
The company is engaged in milling and processing of rice. The
processing facility is located in Gohana (Haryana) with an
installed capacity of 70,080 tonnes per annum (TPA) as on March
31, 2015.
SIDDHIVINAYAK TIMBER: CARE Migrates D Rating to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of
Siddhivinayak Timber trading (STT) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.00 CARE D; Issuer Not Cooperating;
Facility Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from STT to monitor the rating
vide e-mail communications/letters dated July 2, 2018, July 3,
2018 and July 4, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the firm has not provided the requisite
information for monitoring the rating. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on STT's bank facility will now be denoted as CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
The rating takes into account the delay in servicing of debt
obligations by the firm.
Detailed description of the key rating drivers
Delays in debt servicing: As per banker interaction, there have
been delays in servicing of interest and principal on long
term debt and the account has been classified as NPA. Timely
repayment of debt is the key rating sensitivity.
Siddhivinayak Timber Trading (STT) is based out of Nagpur and was
established as proprietorship concern in the year 2012 by Mr.
Ashwin Patel. STT is engaged in the business of processing and
trading of timber logs. The main variety of wood which the firm
imports is Teak Wood, termed as commercial wood which is primarily
used for interior decoration and furniture. The firm has a saw
mill in Kalmana, Nagpur with total installed capacity of 4,000
cubic feet per annum.
SINGH AUTOMOBILE: Ind-Ra Migrates BB- Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Singh
Automobile's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR42 mil. Fund-based working capital migrated to Non-
Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR18 mil. Non-fund-based working capital migrated to Non-
Cooperating Category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 25, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Singh Automobile is a dealer for vehicles manufactured by Mahindra
& Mahindra Limited ('IND AAA'/Stable) and Bajaj Auto Limited.
SPGV PETROCHEM: CARE Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of SPGV
Petrochem (India) Private Limited (SPGV) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long/ Short-term 24.80 CARE D/CARE D; Issuer not
Bank Facilities co-operating; Based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SPGV to monitor the ratings
vide email communications dated May 14, 2018, May 15, 2018, May
24, 2018 and July 9, 2018 along with numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
ratings, CARE is unable to express opinion on the ratings.
Further, SPGV has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The ratings on
SPGV's bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING.
Users of these ratings (including investors, lenders and the
public at large) are hence requested to exercise caution while
using the above ratings.
The ratings assigned to the bank facilities of SPGV Petrochem
(India) Private Limited (SPGV) continue to factor in the ongoing
delays in servicing of its debt obligations for its bank
facilities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in servicing of debt obligations: SPGV is facing liquidity
stress which has resulted in delays in servicing of debt
obligations for its bank facilities.
SPGV was established in October 2010 as a partnership firm by Mr.
Sanjeev Shah and Mr. Dharmesh Shah as partners. Subsequently, in
May 2012, it was converted into a private limited company.
Ahmedabad-based (Gujarat) SPGV is engaged in the trading of
petroleum products like bitumen, furnace oil and pet coke.
SREEDEVI PLASTI: Ind-Ra Maintains D LT Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sreedevi Plasti
Tech Pvt Ltd.'s Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR8 mil. Fund-based facilities (long-/short-term) maintained
in Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR50.5 mil. Term loans (long-term) maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 25, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Sreedevi Plasti Tech manufactures reclaimed rubber at its facility
in the Medak district, Telangana. The facility has an annual
production capacity of 3,700 metric tons.
SUMMIT CORPORATION: CARE Migrates D Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Summit
Corporation Private Limited (SCPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 11.17 CARE D; Issuer Not Cooperating;
Facilities Based on best available
Information
Short term Bank 1.50 CARE D; Issuer Not Cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SCPL to monitor the rating
vide e-mail communications/letters dated June 27, 2018, June 25,
2018, May 30, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on SCPL's bank facilities will now be denoted as CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
The ratings take into account the delays in servicing of debt
obligations by the company. Detailed description of the key
rating drivers.
At the time of last rating on April 26, 2017 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Delay in debt servicing obligations: The banker has confirmed that
there are instances of LC devolvement in the past six
months.
Pune-based, Summit Corporation Private Limited (SCPL) was
incorporated in the year 2012, formerly known as Bharat J Com
India Private Limited, which was incorporated in the year 2006.
SCPL is a part of summit group and engaged in the manufacturing of
fabricated sheet metal items for engineering and automobile
companies. The company also undertakes projects on turnkey basis
for companies, which include supply, installation and
commissioning assistance, shop fabrication and installation of
pressure vessels, installation of storage tanks and others.
SURAJ UDYOG: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Suraj Udyog's
(SU) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR180 mil. (increased from INR150 mil.) Fund-based working
capital limit affirmed IND BB-/Stable/IND A4+ rating; and
-- INR20 mil. Proposed fund-based working capital limit*
assigned with Provisional IND BB-/Stable/Provisional IND A4+
rating.
* The above ratings are provisional and shall be confirmed upon
the sanction and execution of loan documents for the above
facilities by SU to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The affirmation reflects SU's continued small scale of operations.
According to provisional financials for FY18, revenue fell to
INR995.80 million (FY17: INR1,195.10 million) due to a decline in
the number of orders received.
The ratings also reflect the company's weak credit metrics due to
its presence in the highly fragmented and intensely competitive
base metal industry. Gross interest coverage (operating
EBITDA/gross interest expense) marginally improved to 1.84x in
FY18 (FY17: 1.42x) on account of a decline in interest cost and
net leverage (adjusted net debt/operating EBITDAR) deteriorated to
4.75x (4.34x) due to the increase in the amount of working capital
facility and vehicle loan.
The ratings factor in SU's tight liquidity position, as reflected
by its full utilization of the working capital facilities during
the 12 months ended June 2018.
Moreover, the EBITDA margins were average at 3.97% in FY18 (FY17:
2.90%) with return on capital employed at 13.34% (11.75%). The
rise in margins in FY18 was due to a decline in raw material cost.
The ratings are further supported by promoters' more than 10 years
of experience in manufacturing metallic ingots and industrial zinc
products.
RATING SENSITIVITIES
Negative: Any deterioration in EBITDA margins leading to EBITDA
interest coverage falling below 1.5x, all on a sustained basis
could be negative for the ratings.
Positive: An improvement in the EBITDA margins, leading to EBITDA
interest coverage exceeding 2.5x, all on a sustained basis could
be positive for the ratings.
COMPANY PROFILE
Established in 2001, SU is a proprietorship unit engaged in
manufacturing metallic ingots and industrial zinc products for
paint, rubber, ceramic and pharmaceutical companies. Its corporate
office is located in Gurgaon, Haryana and manufacturing units in
Tauru, Haryana. SU utilizes 60% of its total installed
manufacturing capacity of 15,000MTPA.
SURESH ANGADI: CARE Maintains D Rating in Not Cooperating
---------------------------------------------------------
CARE has been seeking information from Suresh Angadi Education
Foundation Trust (SAEF) to monitor the rating(s) vide e-mail
communications dated April 26, 2018, May 3, 2018, June 22, 2018,
July 11, 2018 and numerous phone calls. However, despite CARE's
repeated requests, the trust has not provided the requisite
information for monitoring the ratings. Also, the trust has not
been submitting the NDS. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information, which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Suresh Angadi
Education Foundation Trust's bank facilities continues to be
denoted as CARE D; ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 34.02 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays by the company: The trust had been delaying the repayments
on its debt facilities due to cash flow mismatch leading to
liquidity issues.
SAEF was established in the year 2008 by Mr.Suresh Chennabasappa
Angadi, sitting MP from Belagavi, Karnataka. The trust was
established to set up educational institute in Belagavi. SAEF
started Angadi College of Commerce & Science (affiliated with Rani
Chennamma University, Belgavi) in 2008 which provides courses like
PUC, B.Com, BBA, BSc & BCA. Subsequently in 2009, it started
Angadi Institute of Technology and Management (affiliated with
Vishveshwarayya Technological University) which provides courses
like B.E (Civil, Mechanical, Electrical & Electronics., Computer
Science), MBA, M.Tech and other PG courses, also diploma course
(affiliated with DTE, Bangalore) in civil and mechanical was
introduced in the year 2013. In 2015 the trust started
International school (affiliated with CBSE, New Delhi).
TIRUPATI BASMATI: CARE Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Tirupati
Basmati Export Pvt Ltd (TBE) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.57 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short term Bank 0.75 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Long-term/Short- 123.50 CARE D; Issuer not cooperating;
term Bank Based on best available
Facilities Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information/NDS from TBE to monitor the
ratings vide e-mail communications/ letters dated dated July 6,
2018, July 2, 2018, June 22, 2018, May 28, 2018, May 2, 2018, and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on TBE's bank facilities continue to be denoted as
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings of the bank facilities of TBE takes into account
ongoing delays in debt servicing by the company.
Tirupati Basmati Exports Pvt Ltd (TBE) was established as a
partnership firm (under the name and style M/s Tejinder Kumar and
Brothers) in 1985 by first generation entrepreneur, Mr Nathi Ram
Gupta in Karnal, Haryana. The firm was reconstituted as a private
limited company and was renamed to TBEPL in March 2009. The
company is engaged in milling, processing and selling of various
varieties of basmati rice. The company's manufacturing unit is
located in Karnal (Haryana) with a total installed capacity of 24
Metric Tonnes per Hour (MTPH) as on December 31, 2015 and
additional sorting capacity of 18 MTPH through its 3 sortex
plants. The company also processes semi-processed rice procured
from small rice millers.
During FY17 (refers to the period April 1 to March 31), TBE
registered a total income of INR305.51 crore with losses of
INR85.33 crore as against a total income of INR443.44 crore with
PAT of INR5.56 crore during FY16.
UTKAL HEALTHCARE: Ind-Ra Assigns 'BB' Rating to INR450MM Loan
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Utkal Healthcare
Private Limited (UHPL) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable.
The instrument-wise rating action is:
-- INR450 mil. Term loan due on July 2025 assigned with
IND BB/Stable rating.
KEY RATING DRIVERS
The ratings reflect the delays in the commercialization of UHPL's
hospital project. This had resulted in a cost overrun of INR419
million, which was funded through a mix of debt and equity. The
company expects to start full-fledged operations from December
2018.
The project has been part completed and has commenced operations
since July 2018, with a total bed capacity of 50 as against the
plan of 150 beds.
The ratings also factor in the high competition that the company
will face due to the already established reputed hospitals in the
city.
The ratings however are supported by the company's promoter's
three decades of experience in the healthcare industry and the
locational advantage of the project as it has easy accessibility
to the city's airport, interstate bus terminal, railway station
and highways.
RATING SENSITIVITIES
Negative: Any further delays in the commencement of full
commercial operations (beyond December 2018) of 150 beds could be
negative for the ratings.
Positive: Stabilization of operations in a timely manner could
result in a positive rating action.
COMPANY PROFILE
UHPL is constructing a 150-bed multi-specialty hospital in
Bhubaneswar. The hospital will be operated on a clinician driven
model.
VOLT-AGE INFRA: CARE Migrates D Rating to Not Cooperating
---------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Volt-Age
Infra Private Limited (VIPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 7.00 CARE D; Issuer Not Cooperating
Short term Bank
Facilities 9.50 CARE D; Issuer Not Cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from VIPL to monitor the
rating(s) vide e-mail communications/letters dated May 28, 2018
and June 19, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In the absence
of minimum information required for the purpose of rating, CARE is
unable to express opinion on the rating. In line with the extant
SEBI guidelines CARE's rating on VIPL.'s bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account delays in repayment of debt
obligations.
Detailed Description of the Key Rating Drivers
At the time of last rating on April 20, 2017, the following was
the rating weakness.
Key Rating Weaknesses
Delay in debt servicing: There have been continuous delays in
servicing of debt obligations.
VIPL is engaged in design, supply, erection, testing and
commissioning of E.H.V. (Extra High Voltage), Turnkey outdoor
substation projects, hydropower projects, switchyard station,
power transmission lines and industrial lines, testing of
electrical equipments, live line / hot line and offline
maintenance on an Engineering, Procurement and Constructin (EPC)
basis. The company was originally established as Voltage Infra &
Power Projects Pvt. Ltd. in May 2003. Later, the name of the
company was changed to Voltage Infra Pvt. Ltd w.e.f. 12th January,
2005. The company started its operation since 2005-06. The firm
undertakes projects on tender basis for various customers
including government, semi-government and private industrial
entities. It has executed projects mainly in Maharashtra and
Gujarat for the Maharashtra State Electricity Transmission Co.
Ltd.
=================
I N D O N E S I A
=================
INTILAND DEVELOPMENT: Moody's Assigns B2 CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating (CFR) to Intiland Development Tbk (P.T.).
At the same time, Moody's has assigned a B2 senior unsecured
rating to the company's proposed US dollar bond issuance. The
proposed bonds are unconditionally and irrevocably guaranteed by
Intiland's major operating subsidiaries.
The outlook on the rating is stable.
The bond proceeds will be used mainly for the refinancing of
existing short-term borrowings and general corporate purposes.
RATINGS RATIONALE
"Intiland's B2 CFR reflects its established market position and
ownership of a diversified asset portfolio, comprising high-rise
apartments, houses, commercial properties and industrial estates,
all of which are well located across Jakarta, Greater Jakarta,
Surabaya and Greater Surabaya," says Jacintha Poh, a Moody's Vice
President and Senior Analyst.
The CFR also considers Intiland's joint ventures with reputable
partners such as GIC Private Limited, a sovereign wealth fund
established by the Government of Singapore (Aaa stable). Such
joint ventures mitigate development and funding risk, while
supporting growth.
"In addition, the B2 CFR takes into account the likely improvement
in Intiland's financial metrics and liquidity over the next 12-18
months, as the company starts to recognize revenue from sales
contracted in previous years and replaces its short-term
borrowings with longer tenor debt," adds Poh, who is also Moody's
Lead Analyst for Intiland.
Intiland is an established property developer with an operating
history of 35 years. The company has successfully developed more
than 60 projects in Jakarta and Surabaya.
Intiland had a sizable land bank of around 2,052 hectares at March
31, 2018, a portion of which was located in the prime areas of
Jakarta and Surabaya. Its land bank is sufficient to support more
than 10 years of development.
Intiland also generates a healthy recurring income - which
accounted for around 23% of its total revenue in Q1 2018 - from
the leasing of its commercial properties. Moody's estimates that
Intiland's recurring cash flow can cover around 0.4x of interest
paid over the next 12-18 months, which is higher than the around
0.2x coverage of other similarly-rated Indonesian property
developers.
Intiland's target is to achieve total marketing sales of IDR3.3
trillion in 2018. In the first half of 2018, the company achieved
marketing sales of around IDR1.3 trillion, of which, IDR693
billion related to the sales of 57 Promenade, which were committed
in 2017 but only processed in 2018.The company expects marketing
sales to improve, with new project launches in September/October
this year.
Moody's expects Intiland's financial metrics will improve over the
next 12-18 months, with adjusted debt/homebuilding EBITDA at
around 5.5x in 2018 and 5.1x in 2019, and homebuilding
EBIT/interest expense at around 1.7x in 2018 and 2.0x in 2019. For
the 12 months ended March 31, 2018, the company's adjusted
debt/homebuilding EBITDA registered 5.2x and homebuilding
EBIT/interest expense 1.8x.
The improvement in the Intiland's financial metrics is largely
driven by its stronger revenue generation. Moody's estimates
around 40%-45% of the company's revenue over the next 12-18 months
will be contributed by marketing sales achieved in previous years.
Intiland's liquidity is weak, owing to its reliance on short-term
funding. However, Moody's expects liquidity to improve over the
next six months, because the company will be replacing its short-
term debt either with the proposed US dollar bond or a syndicated
loan, both of which show longer tenors.
As of March 31, 2018, Intiland had cash and cash equivalents of
IDR878 billion, which were insufficient to cover IDR2.7 trillion
of debt coming due over the next 12 months. The short-term
borrowing consisted largely of secured bank loans, which the
company has a track record of rolling over. Intiland also had
IDR925 billion of committed facilities.
Intiland's proposed US dollar bond is rated in line with its B2
CFR, because bondholders are not exposed to either legal or
structural subordination risk. Pro-forma the US dollar bond
issuance, around 60% of the company's total debt will be
unsecured. Furthermore, the proposed bond will be guaranteed by
all major subsidiaries.
The ratings outlook is stable, reflecting Moody's expectation that
Intiland will successfully execute its business plans and meet its
marketing sales targets, which will support an improvement in the
company's financial metrics to within the threshold of its B2
ratings over the next 12-18 months. The stable outlook also
incorporates Moody's expectation that the company will continue to
successfully roll over its short-term borrowings.
Moody's will unlikely upgrade Intiland's ratings over the next 12-
18 months, given the company's weak financial and liquidity
profile. However, in the longer term, positive cash-flow
generation used towards deleveraging and maintenance of solid
liquidity in the form of cash balances and committed facilities
will be positive for the ratings.
Credit metrics that will support a ratings upgrade include
adjusted debt/homebuilding EBITDA below 3.5x and adjusted
homebuilding EBIT/interest coverage above 3.0x on a sustained
basis.
Intiland's ratings could be downgraded if its financial and
liquidity profiles do not improve, owing to: (1) the company's
failure to execute its business plans, such that its marketing
sales fall below Moody's expectation of IDR2.5-IDR3.0 trillion
over the next 12-18 months; (2) the company's failure to
materially improve its debt maturity profile by replacing short
term borrowings with medium to long term borrowings; (3) a
deterioration in the property market, leading to protracted
weakness in its operations; and (4) a material depreciation in the
Indonesian rupiah, which could increase the company's debt-
servicing obligations.
The credit metrics indicative of a ratings downgrade include
failure to improve the following factors over the next 12-18
months: (1) adjusted debt/homebuilding EBITDA, which should fall
below 5.5x; (2) adjusted homebuilding EBIT/interest expense, which
should rise above 2.0x; or (3) cash holdings and committed
facilities to cover the company's short-term debt obligations.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Established in 1983, Intiland Development Tbk (P.T.) is engaged in
the development, management and operation of office buildings,
mixed-use projects, industrial estates, condominiums and houses
across Jakarta, Greater Jakarta, Surabaya and Greater Surabaya.
The company was formerly known as PT Wisma Dharmala Sakti and
listed on the Jakarta Stock Exchange in 1991.
At June 30, 2018, Intiland was around 52% owned by its founder,
Mr. Hendro Gondokusumo.
=========
M A C A U
=========
SANDS CHINA: Moody's Rates Proposed Sr. Unsecured Notes 'Ba1'
-------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the proposed
senior unsecured notes to be issued by Sands China Ltd., which is
a 70% owned subsidiary of Las Vegas Sands Corp. that owns and
operates LVSC's resorts casino assets in Macau, China. LVSC's Ba1
Corporate Family Rating, Ba1-PD Probability of Default Rating were
affirmed along with Ba1 senior secured debt rating at Las Vegas
Sands, LLC, LVSC's U.S. subsidiary. LVSC's rating outlook was
revised to positive from stable.
Proceeds from the proposed unsecured note offering will be used to
repay outstanding term loans under SCL's existing credit facility
and for general corporate purposes, including capital
expenditures. SCL currently accounts for about 55% of LVSC's
consolidated property-level EBITDA.
"LVSC's decision to issue unsecured debt places the company closer
to a low investment grade rating," stated Keith Foley, a Senior
Vice President at Moody's. "Removing a significant majority of
secured debt in the consolidated capital structure remains the
primary impediment towards an investment grade rating," added
Foley.
The Ba1 assigned to SCL's unsecured notes is based on a one-notch
override of Moody's Loss Given Default (LGD) model indicated
rating of Ba2. Moody's decision to override the LGD model in this
instance and manner considers that the shift in SCL's debt capital
towards an unsecured debt from a secured debt does not increase
the risk profile to debt holders at SCL. In effect, the unsecured
notes to be issued at SCL, a publically-traded and discretely
financed subsidiary that does not provide any guarantees to LVSC's
other subsidiaries, will continue to maintain the same first claim
position with regards to SCL cash flows and recovery prospects.
The positive rating outlook acknowledges its views that LVSC has
the ability and willingness to maintain its low investment
grade-type financial ratios, along with the steps that LVSC plans
to take in order to achieve a one-notch upgrade to investment
grade. These steps include achieving a fully unsecured capital
structure at its SCL operating subsidiary within the next
12-months, and subsequent actions after that to further reduce the
amount of secured debt in the consolidated enterprise. At this
time, removing a significant majority of secured debt in the
consolidated capital structure is the primary impediment towards
an investment grade rating.
Affirmations:
Issuer: Las Vegas Sands Corp.
Probability of Default Rating, Affirmed Ba1-PD
Corporate Family Rating, Affirmed Ba1
Issuer: Las Vegas Sands, LLC
Senior Secured Revolving Credit Facility, Affirmed Ba1 (LGD4 from
LGD3)
Senior Secured Term Loan, Affirmed Ba1 (LGD4 from LGD3)
Outlook Actions:
Issuer: Las Vegas Sands Corp.
Outlook, Changed To Positive From Stable
Assignments:
Issuer: Sands China Ltd
Senior Unsecured Regular Bond/Debenture, Assigned Ba1 (LGD4)
RATINGS RATIONALE
The Ba1 Corporate Family Rating considers that LVSC's balance
sheet is defined by low leverage -- debt/EBITDA for the latest 12-
month period is less than 3.0 times -- and a significant cash
balance that provides the company with the financial flexibility
necessary to support future growth initiatives. As a result, the
company is well positioned to capitalize on new and large
international resort casino development projects as they are
presented. This includes the possibility of obtaining a license to
build and operate a resort casino in Japan, a nation that appears
to be moving ever closer to a casino bill.
Also considered are the favorable gaming demand trends in all of
LVSC's geographic markets, along with its considerable EBITDA.
LVSC's consolidated EBITDA has more than covered cash outlays for
cash dividends and distributions, capital expenditures, and the
repurchase of common and preferred shares. LVSC's ability to
reduce debt and still maintain a large unrestricted cash balance
gives us a high level of comfort that it can continue to develop
large integrated resort properties and pay cash dividends without
impairing its credit quality.
Ratings could be upgraded if LVSC continues to reduce the amount
of secured debt in its consolidated capital structure and
maintains debt/EBITDA at or below 3.25 times. The rating outlook
could be revised back to stable if the company does not take
meaningful steps towards materially reducing the amount of any
remaining secured debt in SCL's capital structure within the next
12 months.
LVSC's ratings could be downgraded if, for any reason, it appears
that the company's debt/EBITDA will rise above 3.75 times for an
extended period of time.
LVSC owns and operates hotel and casino integrated resort
facilities in Las Vegas, NV, Macau, China and Singapore. The
company reported consolidated net revenue of about $13.2 billion
for the latest 12-month period ended Mar. 31, 2018.
===============
M A L A Y S I A
===============
MAXWELL INT'L: Still Unable to Submit Annual Report
---------------------------------------------------
Supriya Surendran at theedgemarkets.com reports that Maxwell
International Holdings Bhd said it is still unable to issue its
annual report for the year ended Dec. 31, 2017 (FY17) which was
due to be submitted by April 30.
According to theedgemarkets.com, the China-based sports footwear
manufacturer said it is still experiencing cash flow problems for
the completion and finalisation of its FY17 audit.
It added that it is seeking potential investors to secure funding
for the company, and is conducting regular meetings with the board
to obtain funding to complete the audit, relates
theedgemarkets.com.
"Maxwell is expecting to issue and submit its Annual Report 2017
within three months after the completion of the annual audited
financial statements of the group for FY17," the group said,
theedgemarkets.com relays.
theedgemarkets.com notes that trading in Maxwell shares has been
suspended from May 10, following the non-submission of the annual
report.
Maxwell International Holdings Berhad is a Malaysia-based
investment holding company. The Company is engaged in the
manufacture of sports shoes mainly in the People's Republic of
China. It designs and manufactures of a variety of sports
footwear, including court sports, such as basketball shoes,
volleyball shoes and badminton shoes; running and casual or
leisure sports shoes, such as hiking shoes and casual walking
shoes. Maxwell is the original equipment manufacturer and
original design manufacturer for a host of third-party brands.
Maxwell distributes its products to international customers
directly, as well as via trading houses and brand distributors.
Maxwell's end user markets include Europe, America, and Asia,
consisting mainly of Japan, South Korea, Singapore, Hong Kong,
Malaysia and Saudi Arabia. The Company's subsidiaries include
Zhenxing Shoes, Maxwell Global Investment Limited and Maxwell
International Trading Sdn. Bhd.
Maxwell had slipped into PN17 status on Aug. 2, 2016 after its
external auditors expressed a disclaimer opinion in its audited
financial statements for the financial year ended Dec. 31, 2015.
=====================
P H I L I P P I N E S
=====================
BANGKO BUENA: Monetary Board Orders Bank's Closure
--------------------------------------------------
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited Bangko Buena Consolidated, Inc. (A Rural Bank) from
doing business in the Philippines. Under Resolution No. 1194.A
dated July 26, 2018, the MB directed the Philippine Deposit
Insurance Corporation (PDIC) as Receiver to proceed with the
takeover and liquidation of the bank. PDIC took over the bank on
July 27, 2018.
Bangko Buena Consolidated is an eight-unit rural bank with Head
Office located at #23 Valeria St., cor. Rizal St., Brgy. Nonoy,
City of Iloilo. Its seven branches are located in Bacolod, Negros
Occidental; Barotac Nuevo and Lambunao in Iloilo; Buenavista,
Guimaras; Culasi and Pandan in Antique; and Dao, Capiz.
Latest available records show that as of March 31, 2018, Bangko
Buena Consolidated had 9,845 deposit accounts with total deposit
liabilities of PhP271.8 million. Total insured deposits amounted
to PhP245.9 million equivalent to 90.5% of total deposits.
PDIC assured depositors that all valid deposits and claims shall
be paid up to the maximum deposit insurance coverage of
PhP500,000.00. Individual depositors with valid deposit accounts
with balances of PhP100,000.00 and below shall be eligible for
early payment and need not file deposit insurance claims, provided
they have no outstanding obligations with Bangko Buena
Consolidated or have not acted as co-makers of these obligations.
These individual depositors must ensure that they have complete
and updated addresses with the bank. They may update their
addresses until August 3, 2018 using the Mailing Address Update
Forms to be distributed by PDIC representatives at the bank
premises.
For business entities and all other depositors who are required to
file claims for deposit insurance, the schedule for filing of
claims will be announced as soon as possible through posters in
the bank premises and in other public places, the PDIC website,
www.pdic.gov.ph, and PDIC's official Facebook account.
PDIC also reminded borrowers to continue paying their loan
obligations with the closed Bangko Buena Consolidated and to
transact only with designated PDIC representatives at the bank
premises.
For more information on the requirements and procedures for filing
claims for deposit insurance and settlement of loan obligations,
all depositors and borrowers of the bank are enjoined to attend
the Depositors-Borrowers' Forum which will be held in venues near
the premises of the bank on August 9 to 10, 2018. Details will be
posted in the bank premises and in other public places.
Depositors and borrowers may communicate with PDIC Public
Assistance personnel stationed at the bank premises or call the
PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631
or the Toll Free Hotline at 1-800-1-888-PDIC (7342) for those
outside Metro Manila. Inquiries may also be sent by e-mail to
pad@pdic.gov.ph or via private message to the official PDIC
Facebook account at www.facebook.com/OfficialPDIC.
=================
S I N G A P O R E
=================
FOR YOU WEDDING: Caterer Abruptly Shut; Couple Left Stranded
------------------------------------------------------------
Channel NewsAsia reports that at least six couples have been left
stranded after their wedding caterer abruptly cancelled their
packages and became uncontactable.
The couples had paid monthly instalments for their wedding
packages with For You Wedding amounting to about SGD108,000 in
total, the Consumers Association of Singapore (CASE) said on
July 31.
The six couples lodged complaints with the consumer watchdog
between July 22 and July 30, CNA relates.
According to the company's Facebook page, it also offers services
such as wedding decor, photography and entertainment, the report
discloses.
A check on social media by Channel NewsAsia found several
complaints against the company, with one customer saying that he
could not reach the company after he had paid 80 per cent of the
cost of his wedding package.
A few customers also posted negative reviews on For You Wedding's
Facebook page saying they were unhappy with the services rendered
by the company.
The firm's website also appeared to have been taken down, the
report says.
According to the report, CASE said the company's registered
address is 31 Woodlands Close, #08-33, Woodlands Horizon,
Singapore 737855.
The report relates that CASE said it encourages couples making
pre-payments for their wedding packages to purchase wedding
insurance that covers business insolvency.
"Consumers should also do their own research on whether the bridal
agency has a good track record of delivering their services
promptly and effectively," CASE said, CNA relays. "They should
minimise their deposit payment as much as possible and should
never make full payment upfront to the company."
*********
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 ***