/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180802.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 Thursday, August 2, 2018, Vol. 21, No. 152 Headlines A U S T R A L I A A.P. REYEM: First Creditors' Meeting Set for August 9 ARISTOCRAT LEISURE: S&P Affirms 'BB+' ICR; Outlook Stable FIDUS AMICUS: Second Creditors' Meeting Set for August 9 MOSMAN ROWERS: Second Creditors' Meeting Set for August 13 O'CORP MEDIA: First Creditors' Meeting Set for August 9 ZOYGROUP PTY: First Creditors' Meeting Set for August 9 C H I N A CHINA SOUTH CITY: S&P Lowers ICR to 'B-', Outlook Stable KWG PROPERTY: Fitch Rates New USD Senior Notes 'BB-(EXP)' I N D I A ABM INTERNATIONAL: CRISIL Reassigns 'B' Rating to INR2cr Loan ADORN SPECIALITY: Ind-Ra Migrates BB LT Rating to Non-Cooperating ALLIED MEDICAL: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating AMBEKESHWAR STEELS: Ind-Ra Maintains B+ Rating in Non-Cooperating ANONDITA HEALTHCARE: Ind-Ra Corrects May 31, 2018 Rating Release ANUJ TEXTILES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ARORA INDUSTRIES: CRISIL Lowers Rating on INR34.2cr Loan to D BAJAJ SINDHUDURG: CRISIL Assigns B Rating to INR10cr Term Loan BHAGWAT PARDESHI: CRISIL Lowers Rating on INR7.5cr Loan to D BHUSHAN POWER: Tata Says Permit to Submit REvised Offer Not Fair BODHRE DHULE: ICRA Assigns Provisional B Rating to INR300cr Loan BOROCHEMIE: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating CHERUSSERY CREDITS: CRISIL Reaffirms B Rating on INR1.5cr Loan DEULPARA KRISHAK: CRISIL Assigns B- Rating to INR8.49cr Loan EDWARD FOOD: ICRA Reaffirms B+ Rating on INR36cr Loan GALAXY MICA: CRISIL Reaffirms B+ Rating on INR6.66cr LT Loan GURUKRUPA METALS: ICRA Moves B- Rating to Not Cooperating H D ENTERPRISES: ICRA Reaffirms B+ Rating on INR7.5cr Loan IMPERIAL READYMADE: Ind-Ra Maintains D Rating in Non-Cooperating INFRAHITE INFRASTRUCTURE: CRISIL Assigns B+ Rating to INR2cr Loan INTEGRATED SPACES: CRISIL Lowers Rating on INR25cr Loan to D JAGDISH PRASAD: Ind-Ra Maintains BB LT Rating in Non-Cooperating JAYA INDUSTRIES: CRISIL Assigns B+ Rating to INR1cr Cash Loan JPV REALTORS: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating KHWAHISH MARKETING: CRISIL Lowers Rating on INR12.5cr Loan to D KOTHARI PRIMA: Ind-Ra Lowers Long Term Issuer Rating to 'B' KRISHNAIAH MOTORS: ICRA Moves B+ Rating to Not Cooperating KSHEERAABD CONSTRUCTIONS: Ind-Ra Maintains BB- in Non-Cooperating LANCO INFRATECH: Faces Liquidation as Lenders Reject Plan LUCKNOW SITAPUR: ICRA Moves D Rating to Not Cooperating MEGHA AGROTECH: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable MIL STEEL: ICRA Reaffirms D Rating on INR8.74cr Term Loan MINOP INNOVATIVE: CRISIL Migrates C Rating to Not Cooperating MITTAPALLI AUDINARAYANA: CRISIL Ups Rating on INR56cr Loan to B+ NATIONAL STEEL: ICRA Lowers Rating on INR1,199.5cr Loan to D NAV BHARAT: ICRA Maintains B Rating in Not Cooperating Category NAVYA BAKE: CRISIL Assigns 'B' Rating to INR14cr Long Term Loan NEERA BHIMA: CRISIL Assigns B+ Rating to INR22cr Loan NICE MARINE: CRISIL Lowers Rating on INR5cr Cash Loan to D PERFECT ENGINEERS: CRISIL Reaffirms B+ Rating on INR6cr Loan PERMANENT MAGNETS: CRISIL Reaffirms and Then Withdraws C Rating PICSON CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR6cr Loan R K M POWERGEN: ICRA Maintains D Rating in Not Cooperating Cat. RBA FINANCE: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ROCKEIRA ENGINEERING: Ind-Ra Assigns BB+ Rating, Outlook Stable SAIBABA SOLVENT: Ind-Ra Migrates BB- LT Rating to Non-Cooperating SANTHAGARIK AGRO: CRISIL Hikes Rating on INR5cr Cash Loan to B+ SARA INTERNATIONAL: CRISIL Withdraws D Rating on INR50cr Loan SGR EXIM: Ind-Ra Migrates B- LT Issuer Rating to Non-Cooperating SHREE KRUSHNA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating SHREE VARDHMAN: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable SIYARAM METAL: ICRA Moves B- Rating to Not Cooperating Category SME STEELS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating SOHO INFRASTRUCTURE: Insolvency Resolution Process Case Summary SONA BEVERAGES: ICRA Withdraws B- Rating on INR10cr Loan SRINIDHI REAL: ICRA Maintains 'B' Rating in Not Cooperating ST. GREGORIOS: CRISIL Lowers Rating on INR6.5cr LT Loan to D STYLEONE RETAIL: CRISIL Migrates D Rating to Not Cooperating SU-KAM POWER: Carlyle, Aion and Schneider Among Firm's Suitors TNR INDUSTRIES: CRISIL Migrates C Rating to Not Cooperating VAISHNAVI LIFECARE: ICRA Hikes Rating on INR5.72cr Loan to B+ VICEROY BANGALORE: CRISIL Maintains D Rating in Not Cooperating VIR ELECTRO: ICRA Maintains B- Rating in Not Cooperating J A P A N TOSHIBA CORP: KEPCO Loses Preferred Bidder Status for NuGen M A L A Y S I A 1MDB: Malaysia Suspects Chinese Cash Paid Fund's Debt N E W Z E A L A N D EBERT CONSTRUCTION: Goes Into Receivership with NZ$40MM Debt S I N G A P O R E JASON HOLDINGS: Posts $121,000 Net Loss for Year Ended Dec. 31 - - - - - ================= A U S T R A L I A ================= A.P. REYEM: First Creditors' Meeting Set for August 9 ----------------------------------------------------- A first meeting of the creditors in the proceedings of A.P. Reyem Pty. Limited, trading as The Sofa Studio, will be held at the offices of Farnsworth Shepard, Level 5, 2 Barrack Street, in Sydney, NSW, on Aug. 9, 2018, at 11:00 a.m. Adam Shepard of Farnsworth Shepard was appointed as administrator of A.P. Reyem on July 30, 2018. ARISTOCRAT LEISURE: S&P Affirms 'BB+' ICR; Outlook Stable --------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' long-term issuer credit rating on Aristocrat Leisure Ltd., a gaming solutions provider based in Australia. S&P said, "The outlook on the rating remains stable and we assess the company's liquidity as strong. We also affirmed our 'BB+' rating on Aristocrat's debt, and the recovery rating remains '3'." The acquisitions of Seattle-based social gaming company Big Fish Inc. and Israeli-based mobile game developer Plarium Global Ltd. in late 2017 signaled a shift toward digital gaming for Aristocrat. The digital gaming segment of the company has increased to about 38% of revenue on a pro forma basis. These acquisitions should help mitigate volatility the business faces from the land-based gaming industry through the increased contribution from recurring revenue. S&P said, "We view the acquisitions to be aligned with Aristocrat's existing capabilities and that they will position the company to respond to broader structural trends affecting the gaming industry. In saying this, our rating factors in digital gaming having lower barriers to entry compared with Aristocrat's traditional land-based gaming segments. It also considers competitive pressures and remaining execution risks that Aristocrat faces. "In the six months to March 31, 2018, the acquisitions of Plarium and Big Fish performed in line with expectations. We expect Aristocrat to continue to generate strong cash flows in the near term. As a result, we forecast that the company can steadily deleverage over the forecast period. That said, we expect Aristocrat will use its strong balance sheet to grow its core business, develop products for adjacent markets, undertake capital management, or seek merger and acquisition opportunities. "The stable outlook reflects our view that Aristocrat is committed to sustaining debt to EBITDA less than 2.5x under normal operating conditions, with the ability to increase to 3.0x for strategic opportunities. "The stable outlook also reflects our expectation that Aristocrat's strengthened market position in gaming-machine sales, gaming machine operations, and digital games may reduce the company's historically high earnings volatility. "We could lower the rating if the company's debt to EBITDA is greater than 3.0x as a result of corporate activity or capital management decisions, or greater than 2.5x under normal operating conditions. A decision to increase leverage beyond this level would undermine our assessment of the company's future financial policy commitments. "We could also lower the rating if a material deterioration were to occur in the economic environment in the U.S. or Australia, or if Aristocrat's market position across its portfolio severely weakens. "While an upward rating action is generally unlikely, we could ultimately raise the rating if Aristocrat's cash flow generation and financial policies enable it to sustain debt to EBITDA of less than 1.5x." FIDUS AMICUS: Second Creditors' Meeting Set for August 9 -------------------------------------------------------- A second meeting of creditors in the proceedings of Fidus Amicus Pty Ltd, trading as Mammy's Boy Chip Shop, has been set for Aug. 9, 2018, at 10:30 a.m. at the offices of Australian Institute of Company Directors, Level 26, 367 Collins Street, in Melbourne, Victoria. 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. 8, 2018, at 4:00 p.m. Thyge Trafford-Jones and Domenic Calabretta of Mackay Goodwin were appointed as administrators of Fidus Amicus on July 5, 2018. MOSMAN ROWERS: Second Creditors' Meeting Set for August 13 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Mosman Rowers Limited has been set for Aug. 13, 2018, at 11:30 a.m. at the offices of Ferrier Hodgson, Level 25, One International Towers, 100 Barangaroo Avenue, 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. 10, 2018, at 4:00 p.m. Morgan Kelly and Peter Gothard of Ferrier Hodgson were appointed as administrators of Mosman Rowers on May 7, 2018. O'CORP MEDIA: First Creditors' Meeting Set for August 9 ------------------------------------------------------- A first meeting of the creditors in the proceedings of O'Corp Media Pty Ltd will be held at the offices of Hall Chadwick, Level 14, 440 Collins Street, in Melbourne, Victoria, on Aug. 9, 2018, at 2:30 p.m. David Anthony Ross of Hall Chadwick was appointed as administrator of O'Corp Media on July 30, 2018. ZOYGROUP PTY: First Creditors' Meeting Set for August 9 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Zoygroup Pty Ltd, trading as Good Life Tours; Good Life Retreats; Good Life Travel; Putin Towers; Trump Towers; President Trump Towers; President Putin Towers, will be held at Suite 1, Level 15, 9 Castlereagh Street, in Sydney, NSW, on Aug. 9, 2018, at 10:30 a.m. Christopher Damien Darin of Worrells Solvency was appointed as administrator of Zoygroup Pty on July 30, 2018. ========= C H I N A ========= CHINA SOUTH CITY: S&P Lowers ICR to 'B-', Outlook Stable -------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on China-based trade center developer China South City Holdings Ltd. (CSC) to 'B-' from 'B'. The outlook is stable. At the same time, S&P lowered its long-term issue rating on the company's outstanding senior unsecured notes to 'CCC+' from 'B-'. S&P said, "We lowered the rating on CSC to reflect that the company will continue to operate under challenging industry conditions and remain unable to materially deleverage in the next one to two years. We expect the company's liquidity position to remain tight with significant refinancing pressure in the context of a tough credit environment. We believe the company's capital structure is weak with a high proportion of short-term debt used to fund assets that have slow turnover and uncertain cash flow generation prospects. "We believe the stagnant sales of trade center commercial properties show limited improvements in industry conditions of trade center operations. Although we expect CSC to have satisfactory contracted sales performance in the fiscal year ending March 2019 with projected sales of Hong Kong dollars (HK$) 16 billion, the sustainability of sales performance in the longer term is uncertain if sales in its core trade center properties do not recover." With ancillary residential properties contributing about 80% of CSC's current sales, the company's remaining unsold residential land bank can sustain for about two years. At the same time, tight financing conditions limit its flexibility to replenish land. CSC started developing and selling apartments on its existing commercial-use land recently to supplement its product mix, but it is unproven whether the company can ramp up apartment sales volume as planned. S&P believes it is difficult for the company to further grow its sales and operating cash flow materially. Thus, the prospects of significant debt reduction and deleveraging is limited. In S&P's view, CSC's weighted average debt maturity at the end of March 2018 of just over two years underlines the persistent weakness in the company's capital structure and its tight liquidity. Sixty-eight percent of its debt are due within two years, while its short-term debt maturing with a year is about 2x its unrestricted cash balance at the end of March 2018. Due to CSC's limited ability to generate positive operating cash flow from property sales, the bulk of debt servicing will remain dependent on refinancing or debt rollover. S&P said, "Under the current challenging credit environment with funding channels becoming restricted, we believe this capital structure arrangement will be increasingly risky. CSC has historically been reliant on bank borrowing, secured by its large investment property portfolio, as well as onshore and offshore debt securities. This helped the company achieve a debt structure with relatively short maturity while keeping funding cost under control. "Although CSC has made good progress repaying short-term debt of more than HK$5 billion in debt securities this year, we believe the large maturity obligations in 2019 will create a material refinancing burden and may eat into the company's cash position. Those large obligations include domestic company bonds of Chinese renminbi (RMB) 3 billion due in January 2019 and RMB2.4 billion (HK$3 billion) due in May 2019. However, CSC does not have imminent repayment risk in the next few months, in our view, because most of its bank borrowings are pledged by collateral; these borrowings typically have a reasonable success of rollover. In addition, the company in the past has raised funds ahead of repayment date and split large maturities with smaller new borrowings. "We believe CSC's profit margin will be compressed by the shift to residential property sales, which generally have a gross margin of about 30%. We project gross margin to fall below 40% with EBITDA margin slipping just under 30% in fiscal 2019. In addition, rising funding cost will increase interest expense and thereby constrain the company's interest coverage. "However, we expect CSC's recurring income business to grow more than 20% in fiscal 2019 and provide some support to the company's credit profile. We believe the population inflow into the trade center zones stemming from the completion of residential projects should further boost recurring income. In fiscal 2018, businesses with rental recurring income, excluding property management and e- commerce, covered more than 60% of the company's interest expenses, from approximately 50% the year before. "In our view, the growing sales and recurring income, coupled with controlled land acquisitions, should result in almost neutral net operating cash flow for CSC in the next two years, helping it to keep its absolute debt growth moderate. Revenue growth should mostly offset the decline in profitability, leading to some degree of deleveraging with the ratio of debt to EBITDA strengthening toward 11x in the next two years from 12x currently. "The stable outlook reflects our view that CSC will manage its maturing debts and achieve satisfactory contracted sales in the next 12 months. Although we believe the company will continue to have tight liquidity and weak capital structure, it should be able to source refinancing and manage near-term debt maturity. "We may lower the rating if CSC's liquidity weakens or capital structure becomes unsustainable. This could be the result of contracted sales slippage or rising challenges in refinancing. Indications of this could be materially higher funding costs or lack of clear viable plans to refinance its upcoming debt maturities. "We could also lower the rating if CSC's EBITDA interest coverage falls below 1x, which could happen due to higher interest expense or weaker sales than our expectation. "We may upgrade the company if CSC's contracted sales and operating performance materially exceeds our base-case expectation, especially if commercial property sales recover, such that its EBITDA interest coverage improves to 1.5x on a sustained basis and its debt-to-EBITDA ratio strengthens more than we projected. At the same time, we would expect CSC's liquidity and capital structure to improve such that its weighted average maturity profile is substantially above two years." KWG PROPERTY: Fitch Rates New USD Senior Notes 'BB-(EXP)' --------------------------------------------------------- Fitch Ratings has assigned China-based KWG Property Holding Limited's (BB-/Stable) proposed US dollar senior notes a 'BB- (EXP)' expected rating. The notes are rated at the same level as KWG's senior unsecured rating because they constitute its direct and senior unsecured obligations. The final rating is subject to the receipt of final documentation conforming to information already received. KWG's ratings are supported by its established homebuilding operations in Guangzhou, strong brand recognition in higher-tier cities across China, consistently high margin, strong liquidity and healthy maturity profile. The ratings are constrained by the small scale of its development and investment property business, as well as its higher leverage after land purchases in 2016. KEY RATING DRIVERS Diverse Coverage: KWG's land bank is diversified across China's Greater Bay Area, which includes Guangzhou, Foshan and Hong Kong, as well as eastern and northern China. In 2017 KWG ranked among the top-10 homebuilders by sales in Guangzhou, the capital of Guangdong province. KWG had 18 million square metres (sqm) of attributable land as at March 2018, spread across 34 cities in mainland China and Hong Kong, which had an average cost of CNY4,310/sqm (excluding Hong Kong) and was sufficient for four to five years of development. KWG has a prudent approach when entering new cities, conducting due diligence for around three years, usually with one or two projects in partnership with reputable local developers. Strong Brand Name: KWG has established strong brand recognition in its core cities by focusing on first-time buyers and upgraders. It appeals to these segments by engaging international architects and designers and setting high building standards. KWG's 2017 pre- sales rose by 29% yoy to CNY28.7 billion after an 11% yoy increase in 2016. Guangzhou, Beijing and Shanghai accounted for 39% of KWG's pre-sales in 2017 (2016: 44%). High Margin through Cycles: KWG's EBITDA margin has remained at 30%-35% through different business cycles and is one of the highest among Chinese homebuilders. Protecting the margin one of KWG's key business objectives and is achieved by maintaining higher-than-average selling prices through consistently high- quality products. The company's experienced project teams also ensure strong execution capability and strict cost controls. . Moreover, KWG has a low unit land cost of 20%-25% of its average selling price due to its strong foothold in Guangzhou, where land prices have not increased as much as in other Tier 1 cities. KWG's EBITDA margin was at 34% in 2017 and Fitch expects the margin to remain above 35% in the next two years as the product mix improves. Worsening Leverage: KWG's leverage on an attributable basis, as measured by net debt/adjusted net inventories, was around 34% in 2017 (2016: 39%), which is slightly below the 35% level where Fitch would consider taking positive rating action. However, Fitch expects the company's leverage to increase gradually, as KWG's leverage is correlated with its contracted sales growth rate and land bank replenishment strategy. Joint Ventures with Leading Peers: KWG's prudent expansion strategy has created a long record of partnerships with leading industry peers, including Sun Hung Kai Properties Limited (A/Stable), Hongkong Land Holdings Limited (A/Stable), Shimao Property Holdings Limited (BBB-/Stable), China Vanke Co., Ltd. (BBB+/Stable), China Resources Land Ltd (BBB+/Stable) and Guangzhou R&F Properties Co. Ltd. (BB-/Negative). These partnerships helped KWG achieve lower project financing costs, reduce competition in land bidding and improve operational efficiency. Joint venture presales made up 52% and 47% of KWG's total attributable presales in 2017 and 2016, respectively. Joint venture cash flow is well-managed and investments in new joint venture projects are mainly funded by excess cash from mature joint ventures. Leverage is also lower at the joint venture level because land premiums are usually funded at the holding company level and KWG pays construction costs only after cash is collected from pre-sales. DERIVATION SUMMARY KWG's ratings are supported by its established homebuilding operations in Guangzhou and strong higher-tier cities across China, consistently high margin, strong liquidity and healthy maturity profile. KWG has maintained one of the highest margins among Chinese homebuilders throughout the cycle. Its 30%-35% EBITDA margin is comparable with that of Yuzhou Properties Company Limited (BB-/Stable) and Logan Property Holdings Company Limited (BB-/Stable) and some investment-grade peers, such as Poly Real Estate Group Company Limited (BBB+/Stable) and China Jinmao Holdings Group Limited (BBB-/Stable), and is higher than some 'BB' peers - Future Land Holdings Co., Ltd. (BB/Stable) and CIFI Holdings (Group) Co. Ltd. (BB/Stable). KWG's ratings are constrained by the small scale of its development and investment property business as well as higher leverage following its high-cost land purchase in 2016. Fitch expects KWG's leverage, measured by net debt/adjusted inventory, to increase to 36% by end-2018 (2017: 34%) due to high land premiums as the company expands. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - Contracted sales gross floor area to rise by 25% in 2018 - Average selling price to increase by 5% in 2018 due to better sales mix in higher-tier cities and then remain flat - EBITDA margin, excluding capitalised interest, to rise to 33%-34% in 2018-2020 - Land replenishment rate of 1.5x contracted sales gross floor area (attributable) in 2018-2021 - Leverage to deteriorate to about 36%-38% for 2018-2019 RATING SENSITIVITIES Developments that may individually or collectively, lead to positive rating action include: - EBITDA margin sustained above 30% - Net debt/adjusted inventory sustained below 35% Developments that may individually or collectively, lead to negative rating action include: - EBITDA margin below 25% for a sustained period - Net debt/adjusted inventory above 45% for a sustained period LIQUIDITY Adequate Liquidity: KWG has well-established diversified funding channels and strong relationships with most foreign, Hong Kong and Chinese banks. KWG has strong access to both domestic and offshore bond markets and was among the first few companies to issue panda bonds. KWG had available cash of CNY40 billion in 2017, including restricted cash, which was enough to cover the repayment of its CNY4 billion in short-term borrowing and outstanding land premium. Fitch expects the group to maintain sufficient liquidity to fund development costs, land premium payments and debt obligations in 2018-2019 due to its diversified funding channels, healthy maturity profile and flexible land acquisition strategy. ========= I N D I A ========= ABM INTERNATIONAL: CRISIL Reassigns 'B' Rating to INR2cr Loan ------------------------------------------------------------- CRISIL has reaffirmed its rating on the short term bank facilities of ABM International Limited (ABM) at 'CRISIL A4' while assigning the rating at 'CRISIL B/Stable' on the long term bank loan facility. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2 CRISIL B/Stable (Reassigned) Letter of Credit 40 CRISIL A4 (Reaffirmed) Proposed Short Term Bank Loan Facility 8 CRISIL A4 (Reaffirmed) The rating continues to reflect ABM's modest scale of operations in a competitive industry, moderate working capital requirement, and vulnerability to volatility in raw material prices and fluctuations in foreign exchange (forex) rates. These weaknesses are partially offset by the extensive experience of promoters and established customer base, no term debt obligation, and above average financial risk profile. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in a competitive industry: Scale is modest as reflected in revenue estimated at INR88.6 crore for fiscal 2018. Modest scale limits bargaining power with suppliers as well as customers. * Moderate working capital requirement: Working capital requirement is moderate, as reflected in estimated gross current assets (GCAs) of 84 days as on March 31, 2018, because of receivables at 42 days. CRISIL believes working capital requirement will remain at similar levels over the medium term. * Low operating profitability and vulnerability to volatility in raw material prices and fluctuations in foreign exchange (forex) rates: ABMIL remains vulnerable to foreign currency risk and registered operating margin of 0.7 percent in 2017-18. Operating margins are expected to remain at similar level over the medium term. Strength * Extensive experience of promoters in polyvinyl (PVC) resin industry and established customer base: The Gandhi family has been associated with the PVC resin industry for more than three decades. As a result, ABMIL has established healthy relationships with its customers and suppliers. Its customers include a mix of end users as well as distributors. Some of the end users include Finolex Industries Ltd, Responsive Industries Ltd, Kisan Irrigation Ltd, and Action Footwear Pvt Ltd. Extensive industry experience of promoters should help maintain the business risk profile over the medium term. * No long-term debt obligation: With nil long-term debt, most of the debt is short-term in nature. This enhances the financial flexibility. CRISIL believes accrual generated by ABM will solely be utilised to meet working capital requirement. * Above average financial risk profile: Financial risk profile is expected to remain above average, with estimated low total outside liabilities to tangible networth ratio of 0.81 times as on March 31, 2018, and above average debt protection metrics as reflected in interest coverage and net cash accrual to total debt ratios of 4.30 times and 0.02 time, respectively, in fiscal 2018. Outlook: Stable CRISIL believes that ABM will benefit from its promoter's extensive experience in polymer trading business and established relations with suppliers. The outlook may be revised to 'Positive' if there is a sustained and substantial increase in scale of operations and profitability leading to improvement in cash accruals and financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm reports lower than expected accruals due to decline in revenues or profitability level, or if the company's working capital requirement deteriorates leading to deterioration in liquidity profile of the firm or if the firm undertakes any debt funded capex. Incorporated in 1965 and promoted by Mr. V K Gandhi, ABMIL imports PVC resin, polypropylene, and high-density polyethylene. The company is based in New Delhi. ADORN SPECIALITY: Ind-Ra Migrates BB LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Adorn Speciality Polymers Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR180 mil. Fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 28, 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 2003, Adorn Speciality Polymers is engaged in the manufacturing, trading and exporting of leather dyes. ALLIED MEDICAL: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Allied Medical 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: -- INR100 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund based working capital limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 7, 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 1982, Allied Medical manufactures and trades life- saving equipment, and surgical and hospital equipment such as anesthesia and anesthesia vaporizers. Its manufacturing site is in Gurugram, Haryana. AMBEKESHWAR STEELS: Ind-Ra Maintains B+ Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ambekeshwar Steels Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limit maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR44.30 mil. Term loans due on December 2018 maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 15, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Ambekeshwar Steels manufactures electric-resistance welded pipes that are used in the construction industry. ANONDITA HEALTHCARE: Ind-Ra Corrects May 31, 2018 Rating Release ---------------------------------------------------------------- India Ratings and Research corrected a rating release on Anondita Healthcare published on May 31, 2018 that incorrectly stated the short-term rating of the fund-based limits. The amended release is as follows: India Ratings and Research (Ind-Ra) has maintained Anondita Healthcare's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR70 mil. Fund-based limits maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; -- INR15 mil. Non-fund-based bank guarantee maintained in non- cooperating category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR40 mil. Term loan maintained at non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 30, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 2004 by Mr. Anupam Ghosh, Anondita Healthcare is a proprietorship concern engaged in the manufacturing of latex condoms and surgical gloves under the following brands: Mid Night (condoms) and Cure (surgical gloves). ANUJ TEXTILES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Anuj Textiles Private 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 know appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR300 mil. Fund-based working capital limit 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 Incorporated in 1988, Anuj Textiles sells printed cotton sarees in West Bengal, Assam, Odisha and Bihar. ARORA INDUSTRIES: CRISIL Lowers Rating on INR34.2cr Loan to D ------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Arora Industries (AI; a part of the Arora group) to 'CRISIL D/CRISIL D' from 'CRISIL BB+/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 34.2 CRISIL D (Downgraded from 'CRISIL BB+/Stable') Export Performance 0.6 CRISIL D (Downgraded from Guarantee 'CRISIL A4+') Letter of Credit 5.1 CRISIL D (Downgraded from 'CRISIL A4+') Proposed Long Term 3.1 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB+/Stable') Rupee Term Loan 7.0 CRISIL D (Downgraded from 'CRISIL BB+/Stable') The ratings reflect delays by the Arora group in servicing debt, susceptibility to volatility in raw material prices and modest debt protection metrics. These strengths are partially offset by the experience of the promoters and a comfortable networth. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AI and Arora Knit Fab Pvt Ltd (AKFPL). This is because the two entities, together referred to as the Arora group, have common promoters, are in the same line of business, and have operational and financial fungibilities. Unsecured loans (outstanding at INR0.1 crore as on March 31, 2017, extended to the Arora group by the promoters have been treated as debt. Key Rating Drivers & Detailed Description Weaknesses * Delays in servicing term loan: The group has deferred in repaying maturing debt because of weak liquidity, caused, in turn, by inadequate cash accrual and fully utilised bank lines. This trend should continue over the medium term. * Susceptibility to fluctuations in raw material prices: Intense competition and highly volatile raw material prices may continue to restrict scalability and limit pricing power, thereby constraining profitability. Operating margin has been modest at 4.9-5.5% over the three fiscals through 2017. * Modest debt protection metrics: Interest coverage and net cash accrual to adjusted debt ratios were 1.9 times and 0.10 time, respectively, in fiscal 2017 due to low profitability. The metrics may remain weak even over the medium term. Strengths * Experience of promoters: Benefits from the promoters' experience of over three decades, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should continue to support the business. The product profile has also been consistently diversifying. Hence, revenue reported a compound annual growth rate of 9% over the three fiscals through 2017. * Comfortable networth: Networth increased to INR62.8 crore as on March 31, 2017, from INR50.6 crore a year ago due to equity infusion of INR9.5 crore in fiscal 2017. Networth is expected to further improve over the medium term, driven by moderate accretion to reserve. AI, a partnership firm set up in 2007, manufactures polyester fabric, mink blankets, and garments. AKFPL, incorporated in 2000, is in a similar line of business. The group is based in Ludhiana, Punjab, and Mr Mohinder Singh Arora and his elder brother, Mr Ravinder Pal Singh, are the promoters. BAJAJ SINDHUDURG: CRISIL Assigns B Rating to INR10cr Term Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long- term bank facility and assigned short term rating of 'CRISIL A4' on the short-term bank facility of Bajaj Sindhudurg Rice Mills Limited (BSRML). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2 CRISIL A4 (Assigned) Cash Credit 5 CRISIL B/Stable (Assigned) Term Loan 10 CRISIL B/Stable (Assigned) Short Term Loan 10 CRISIL A4 (Assigned) Pledge Loan 18 CRISIL A4 (Assigned) Long Term Loan 5.35 CRISIL B/Stable (Assigned) The rating continues to reflect the nascent stage of operations, subdued financial risk profile, and debt-funded capital expenditure (capex). The rating also factors the working capital- intensive nature of operations, and susceptibility to volatile raw material prices. These rating weaknesses are partially offset by extensive experience of the promoters, in successfully operating and managing another business, Bajaj Healthcare Ltd. Analytical Approach For arriving at the rating, CRISIL has treated unsecured loans of INR6.33 crore extended by BSRML's promoters, as on March 31, 2018, as neither debt nor equity. Key Rating Drivers & Detailed Description Strengths * Extensive experience of the promoters: The two decade-long experience of the promoters, of successfully operating and managing another group company, Bajaj Healthcare Ltd, will support the business risk profile, going forward. Weakness: * Nascent stage of operations: Commercial operations began in July 2017. Timely implementation of the proposed project, stabilisation of operations, and commensurate ramp-up of sales will remain critical to achieve growth in revenue and profitability. * Subdued financial risk profile: Financial risk profile will be constrained by small networth (despite equity infusion of INR10 lakh by the promoters), and the leveraged capital structure, with the recently established unit. Gearing is likely to be high at 3.59 times, over the medium term. * Working capital-intensive nature of operations: Operations are highly working capital intensive, due to the seasonal nature of the business. Gross current assets were around 1,004 days as on March 31, 2018, led by inventory of 661 days. Outlook: Stable CRISIL believes BSRML will benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if stabilisation of operations over the medium term leads to anticipated revenue, profitability, and cash accrual in the initial phase. The outlook may be revised to 'Negative' if delay in stabilisation impacts growth in revenue and cash accrual, or if large working capital requirement or any major capex, weakens the financial risk profile, especially liquidity. BSRML was set up as a closely-held limited company in 2015. The company processes and sells rice, and has a facility in Sindhudurg district (Maharashtra). Commercial operations began in July 2017. BHAGWAT PARDESHI: CRISIL Lowers Rating on INR7.5cr Loan to D ------------------------------------------------------------- CRISIL has downgraded the rating to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating', as there has been delay in repayment of term loan since 31 March 2018. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 7.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with Bhagwat Pardeshi Realty (BPR) for obtaining information through mails dated August 18, 2017 and September 8, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of BPR. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for BPR is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower. Based on the last available information and banker feedback, CRISIL has downgraded the rating to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating', as there has been delay in repayment of term loan since 31 March 2018. BPR was set up on Jan 28, 2013 by Bhagwat and Pardeshi family of Pune. The firm is the part of Janki construction group and Bhama Constructions group and is engaged in real estate development largely in Pune. BHUSHAN POWER: Tata Says Permit to Submit REvised Offer Not Fair ---------------------------------------------------------------- The Economic Times reports Tata Steel has reacted sharply to the decision of Bhushan Power & Steel's lenders to permit bidders to revise their offers. ET relates that Tata Steel had emerged as the highest bidder before the lenders' decision allowed JSW to sweeten its offer, days before the bankrupt company's committee of creditors (CoC) was to conduct the final voting on the bids. Tata and Liberty House, didn't amend their offers. After JSW revised the bid, Tata Steel wrote to the CoC, pointing out that under the CVC guideline for state-run banks, there was no concept of a re-bid, the report relates. It also said that the National Company Law Appellate Tribunal (NCLAT) had refused to allow a re-bid. Tata Steel received a letter dated June 16, 2018, from Bhushan Power & Steel's resolution professional saying that it had qualified as the highest bidder, a top source close to the developments told ET, adding that the NCLAT too had directed the CoC on July 20, 2018 to vote on the offers. "Since Tata Steel had already received the letter, vote on the bids was to be a mere formality. Then, suddenly, merely days before the vote, others put in a revised bid," the source, as cited by ET, said. "If others were keen to acquire, then they could have put in a higher bid in the first place, like Tata Steel did for Bhushan Steel," the source added, referring to the company's INR35,200 crore bid for Bhushan Steel, another bankrupt company, against JSW's offer of INR29,700 crore. "If the Insolvency and Bankruptcy Code (IBC) is supposed to be a trophy legislation for solution of the problems facing the banking sector, these deviations in the form of late bidding, interference must not be allowed," the source said, ET relays. The July 2018 amendment to IBC also says no late bidding would be allowed, this person said, adding that while the intent of the legislation was preventing late bidding, it seemed to be in contrast to the ground reality. Tata Steel had approached the appellate tribunal against the lenders' move to seek revised bids. The tribunal has since directed lenders to first evaluate the bids received in the initial round, according to ET. "Under the IBC, it is very clear if the bidding process fails, then the company goes for liquidation. Since February 2018, when the bids closed, we have followed the laws of the land and it has to work," the source said, adds ET. About Bhushan Power Bhushan Power and Steel Limited manufactures and markets steel products. It offers flat products, such as coated products, galvanized/galvalume, color coated products, cable tapes, and cold rolled products; and long products, including iron making and sponge iron products. The company also provides steel pipes, hollow steel sections, grooved pipes, and carbon steel tubes. Mahendra Kumar Khandelwal was appointed as the IRP in the case under an order passed by the National Company Law Tribunal (NCLT) on July 26, 2017. Bhushan Power, which owes over INR37,000 crore to a consortium of lenders led by Punjab National Bank, was among 12 large companies identified by the Reserve Bank of India against which banks were directed to initiate insolvency proceedings, according to LiveMint.com. Barring Era Infra Engineering Ltd, petitions have been admitted in all other cases, LiveMint.com notes. BODHRE DHULE: ICRA Assigns Provisional B Rating to INR300cr Loan ---------------------------------------------------------------- ICRA had initially assigned a provisional [ICRA]BBB+ (Stable) rating to the INR408 crore proposed bank facilities to be raised by Bodhre Dhule Highway Private Limited (BDHPL) in November 2017. ICRA had later reviewed and downgraded the above rating to Provisional [ICRA]BB and further downgraded to provisional [ICRA]B in May 20181 in line with its policy on assigning provisional ratings. The outlook on the rating is 'Negative'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed Term 300.00 Provisional [ICRA]B Loan (Negative) Proposed Non- 108.00 Provisional [ICRA]B fund based limits (Negative) The above ratings are provisional and would be converted into final upon execution of the necessary transaction documents being in line with ICRA's expectations. For now, ICRA has extended the validity of the rating by 120 days; and would keep it under review in line with its published methodologies/ policies. BOROCHEMIE: Ind-Ra Maintains BB Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Borochemie (India) Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR65 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund-based limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1999, Borochemie (India) trades imported boron- based chemicals and minerals such as borax decahydrate and boric acid, mainly from free trade zone warehouses located in Panvel, Maharashtra. CHERUSSERY CREDITS: CRISIL Reaffirms B Rating on INR1.5cr Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating to the long- term bank loan facilities and non-convertible debentures (NCD) of Cherussery Credits Private Limited (Cherussery). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 1.5 CRISIL B/Stable (Reaffirmed) The rating reflects small scale of operations with geographical concentration, and weak though improving earnings profile. These weaknesses are partially offset by adequate capitalisation. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations with geographical concentration: The scale is small, with a loan portfolio of INR2.25 crore as on March 31, 2018 (INR2.1 crore as on March 31, 2017). Cherussery has seven branches, all are located in Thrissur. The loan portfolio mainly comprises gold loan of 47% and small business loan (SBL) of 53% of the total loan portfolio as on March 31, 2018. Since fiscal 2018, company has increased its focused on SBL, the contribution of which increased to 53% as on March 31, 2018 from 11% as on March 31, 2017. * Weak though improving earning profile: Profitability is weak with negative return on asset in the last two fiscal. The company had a net loss of INR10 Lakh on a total income of INR49 Lakh for fiscal 2018 which has improved from loss of INR82 Lakh on total income of 16 Lakh in fiscal 2017. Since the company is in a growth phase its profitability is expected to remain modest over the medium term. With the increase in portfolio the company expects to become profitable during the current fiscal. Strength * Adequate capitalization: Capitalisation is adequate with networth of INR2.96 crore and low gearing of 0.04 times as on March 31, 2018. Promoters intend to infuse capital of INR2 crore during the current fiscal. Gearing is expected to remain comfortable at around 1 time over the medium term. Outlook: Stable CRISIL believes Cherussery will maintain adequate capitalisation. Its scale of operations will remain small and profitability will remain modest over the medium term. The outlook may be revised to 'Positive' if the company significantly improves its capitalisation and profitability while maintaining sound asset quality. The outlook may be revised to 'Negative' if capitalisation is affected significantly because of deterioration in asset quality and capitalisation. Cherussery group was established in 1955 and has been in the financing business since then. Incorporated on December 27, 1989, Cherussery, a non-deposit-taking NBFC licensed by the Reserve Bank of India, was taken over by the Promoter Mr Cherussery Velayudhan Raveendran in 2016. The company provides gold loan, property loans, SBLs, and international/domestic money transfer services. With seven branches in Thrissur, Cherussery plans to expand its business in Tamil Nadu. It has a customer base of around 25000 members. DEULPARA KRISHAK: CRISIL Assigns B- Rating to INR8.49cr Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of Deulpara Krishak Bandhu Himghar Private Limited (DKBHPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 8.49 CRISIL B-/Stable (Assigned) Bank Guarantee 0.16 CRISIL A4 (Assigned) Cash Credit 0.40 CRISIL B-/Stable (Assigned) The ratings reflect susceptibility to change in regulations and intense competition in the West Bengal cold-storage industry, and the company's weak financial profile. These rating weaknesses are partially offset by extensive experience of the promoters in the industry. Key Rating Drivers & Detailed Description Weakness: * Susceptibility to change in regulations and intense competition in the West Bengal cold-storage industry: The company's cold storage facility is located in the Hooghly district (West Bengal). The regional potato cold storage industry is regulated by the West Bengal Cold Storage Association. Fixed rentals curb's JMCSPL's ability to leverage its strengths and favourable location, to generate profit. Furthermore, intense competition from nearly 400 players in the state, restricts the bargaining power of players, who need to offer discounts to ensure healthy capacity utilisation. * Weak financial risk profile: The company started offering cold storage facilities only from March 2017, and thus, has a small track record of operation. The small scale of operations, along with initial low equity capital, have led to a low networth of around INR2.70 crore as on March 31, 2018. Term loan availed for setting up the facility has resulted in high gearing of around 3.70 times on March 31, 2018. Strengths: * Extensive experience of the promoter: The two-decade-long experience of the promoter, Mr Balaram Ghosh, in the potato stocking and trading business, will continue to support the business risk profile. Outlook: Stable CRISIL believes DKBHPL will continue to benefit from the longstanding experience of its promoter in the cold storage business. The outlook may be revised to 'Positive' if the company ensures efficient management of farmers financing, and reports a significant ramp up in scale of operations and profitability. The outlook may be revised to 'Negative' if delay in repayments by farmers, lower-than-expected cash accrual, or any major capital expenditure, weakens liquidity. DKBHPL, which was set up in 2005, operates a cold storage unit (primarily for storing potatoes) at Hooghly district. The storage currently has a capacity of 1,86,000 quintals. Mr Balaram Ghosh and his family members are the directors of the company. EDWARD FOOD: ICRA Reaffirms B+ Rating on INR36cr Loan ----------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to the INR36.00-crore non-convertible debenture programme of Edward Food Research and Analysis Centre Limited (EFRAC). The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-Convertible 36.00 [ICRA]B+ (Stable); Reaffirmed Debenture Programme Rationale The reaffirmation of the rating considers EFRAC's relatively small scale of current operations and a weak financial profile, characterised by an aggressive capital structure, subdued coverage indicators and significant cash losses incurred during FY2017 and FY2018. ICRA notes the high working capital intensity of business due to a stretched receivable position that exerts pressure on the liquidity of the company. The rating also considers the high coupon rate on non-convertible debentures (NCDs), which results in high interest outgo. However, scheduled principal repayment at the end of five years eases liquidity pressure to some extent. The rating, however, derives comfort from the established track record of the Keventer Group, which supports EFRAC's market position to an extent, and a reputed client base, which mitigates the counterparty credit risk to a large extent. The rating positively considers the receipt of accreditation/certification from most of the approving agencies in the food, drug and environment division, which is likely to support the operations, going ahead. In ICRA's opinion, EFRAC's ability to set up and commence the US- FDA approved laboratory within the estimated cost and timeframe and scaling up of operations while improving its capital structure, coverage indicators and cash accruals, would remain the key rating sensitivities, going forward. Outlook: Stable ICRA believes that EFRAC will continue to benefit from the extensive experience of the promoters. The outlook may be revised to Positive if the company is able to scale up its operations while improving its capital structure, coverage indicators and cash accruals. The outlook may be revised to Negative if there is any further delay in setting up of the US-FDA approved laboratory, which could adversely impact the company's profitability. Key rating drivers Credit strengths Established track record of the Keventer Group: EFRAC is a part of the Keventer Group, which comprises various entities involved in diversified businesses like dealing in fast moving consumer goods (FMCG), real estate, food products and agro-related businesses. The Group has supported the business of the company in operational aspect as well as by extending financial assistance through infusing equity/ unsecured loans as and when required. Accreditation/certification in place from most of the approving agencies: The company operates a testing and research laboratory for carrying out test of food and food products, drugs and cosmetics, and environment. It has received accreditation/ certification from most of the approving agencies for all the divisions the company caters to, which is likely to support the operations going ahead. Reputed customer profile reduces counterparty risk to an extent: The company has established relationships with reputed clients and have availed repeat orders from them. The reputed client base reduces the counterparty risk to a large extent. Credit challenges Weak financial profile characterised by an aggressive capital structure, subdued coverage indicators and significant cash losses: The capital structure remained aggressive, as depicted by a gearing of 5.99 times as on March 31, 2018. High debt levels coupled with low profits kept the debt coverage indicators depressed. The company posted operating and net losses during FY2017 majorly due to high professional fees incurred for the issue of NCDs during the year. It recorded an operating profit of INR2.08 crore in FY2018; however, high interest and finance costs led to losses at the net level, which subsequently led to cash losses. Relatively small scale of operations: The company's operating income continued to remain small, notwithstanding a substantial increase from INR7.10 crore in FY2016 to INR14.73 crore in FY2017, depicting a growth of ~107% on the back of execution of a large soil-testing order received during the year. The operating income stood at INR14.84 crore in FY2018, similar to that of the previous fiscal. High working capital intensity of the business exerts pressure on the company's liquidity: The company's working capital intensity of operations has remained high, as reflected by net working capital relative to operating income (NWC/OI) of 80% in FY2018. It has increased substantially during the last two financial years due to high receivables of the company. This in turn, has stretched the company's liquidity position, which also restricts its financial flexibility. High coupon rate on the NCDs: The coupon rate on the NCDs is high at 18%, which results in high interest outgo. However, scheduled principal repayment at the end of five years eases liquidity pressure to some extent. Edward Food Research and Analysis Centre Limited (EFRAC), a part of the Keventer Group, was established in August 1921 by Mr. Edward Keventer as Edward Keventer Private Limited. In 1986, the company was acquired by Mr. M. K. Jalan, Promoter and Chairman of the Keventer Group. Subsequently, the company's name was changed to Edward Keventer Life Science Limited before being further changed to Edward Food Research and Analysis Centre Limited. The company operates a testing and research laboratory for carrying out test of food and food products, drugs and cosmetics, and environment at Subhash Nagar in North 24 Parganas district, West Bengal. GALAXY MICA: CRISIL Reaffirms B+ Rating on INR6.66cr LT Loan ------------------------------------------------------------ CRISIL has reaffirmed its rating on the long-term bank facilities of Galaxy Mica Private Limited (GMPL) at 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B+/Stable (Reaffirmed) Long Term Loan 6.66 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 0.33 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect working capital-intensive operations and a below-average financial risk profile. These weaknesses are partly offset by the extensive experience of the promoters in the laminates industry, their funding support. Analytical Approach CRISIL has treated unsecured loans as neither debt nor equity as these are from the promoters and are expected to be retained in the business over the medium term. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile: The networth was modest at INR8.16 crore and the gearing moderate at of 1.14 times, as on March 31, 2018. The debt protection metrics were average: the interest coverage ratio was 1.78 times and the net cash accrual to total debt ratio 0.11 time in fiscal 2018. The financial risk profile is expected to be in the range of 1.14-1.72 times over the medium term. * Working capital-intensive operations: Extension of significant credit to customers and modest inventory results in high working capital requirement. Gross current assets are estimated at over six months as on March 31, 2018. Strength * Extensive Industry experience of the promoters and their funding support: The promoters have more than 15 years of experience in the laminates industry through a group firm. This has enabled a strong relationship with customers and suppliers. Moreover, the promoters have extended funding support and are expected to continue to do so over the medium term if required. Outlook: Stable CRISIL believes GMPL will continue to benefit from the extensive industry experience of its promoters and their funding support. The outlook may be revised to 'Positive' in case of a significant increase in the scale of operations with sustained profitability, and improvement in the financial risk profile most likely due to substantial capital infusion or sustained cash accrual. The outlook may be revised to 'Negative' if the financial risk profile deteriorates because of a stretch in the working capital cycle or any large, debt-funded capital expenditure. GMPL was incorporated in 2012, promoted by Ahmedabad-based Mr Ashwin Patel, Mr Gautam Patel, and Mr Suresh Patel. The company manufactures laminates used for furnishing. GURUKRUPA METALS: ICRA Moves B- Rating to Not Cooperating --------------------------------------------------------- ICRA has moved the long-term rating for the bank facilities of Gurukrupa Metals (GM) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B- (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 10.00 [ICRA]B- (Stable) ISSUER NOT Cash Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Gurukrupa Metals (GM) is a metal merchant based in Jamnagar, Gujarat and has been in operations since September 2011. The firm primarily trades imported non-ferrous metallic scrap, such as brass scrap, ingots, copper alloys and zinc in and around Jamnagar. H D ENTERPRISES: ICRA Reaffirms B+ Rating on INR7.5cr Loan ---------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B+ for the INR9.44-crore (reduced from INR20.00 crore) long-term fund-based facilities of H D Enterprises (HDE). ICRA has also reaffirmed the short-term rating of [ICRA]A4 for HDE's bank guarantee limits of INR30.00 crore (enhanced from INR25.00 crore). ICRA has further reaffirmed the long-term rating of [ICRA]B+ and the short-term rating of [ICRA]A4 for HDE's unallocated limits of INR5.56 crore. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Cash Credit 7.50 [ICRA]B+ (Stable); reaffirmed Fund-based Term Loan 1.94 [ICRA]B+ (Stable); reaffirmed Non-fund Based Bank Guarantee 30.00 [ICRA]A4; reaffirmed Unallocated 5.56 [ICRA]B+ (Stable)/A4; Reaffirmed Rationale The rating reaffirmation is constrained by the slow execution of the two contracts from Gujarat Industries Power Private Limited (GIPCL) and VS lignite Power Private Limited (VSLP); elongated receivables from VSLP has further added to the woes. The ratings also consider the company's capital-intensive operations, which keeps the gearing and the coverage indicators moderate. The ratings also take into account the vulnerability of profitability to diesel price fluctuation (in case diesel usage is higher than the allowance); the regulatory risks associated with mining operations; and the presence of liquidation damage (LD) clause in contracts, which makes it crucial to achieve monthly mining quantity target. Further, HDE's new project from Western Coalfield Limited involves a significant capex. Hence, timely achievement of financial closure, execution of the order book and commensurate returns from it remains critical to support the liquidity position of the firm. ICRA also takes note that since H. D. Enterprises is a partnership firm, any substantial capital withdrawals from the capital account would adversely affect the entity's net worth and thereby the capital structure. The ratings, however, continue to positively consider the extensive experience of the partners in the lignite mining business; the company's reputed clientele and its current healthy order book position of INR1279 crore (~15 times FY2018's OI). Outlook: Stable ICRA expects HDE to continue to benefit from the experience of its promoters in the mining industry as well as from its healthy order book position. The outlook may be revised to Positive if the company achieves substantial growth in scale and profitability through timely execution of orders and ensures better working capital management. The outlook may be revised to Negative in case any substantial delay in execution/cancellation of any order causes significant decline in scale, profitability and generation of lower-than-expected cash accruals to meets its debt repayments more so as HDE is expected to take considerable debt funded capex for its present order book execution. Further, higher than expected debt-funded capital expenditure or stretch in working capital which weakens the capital structure and liquidity will also lead to revision in outlook to Negative. Key rating drivers Credit strengths Extensive experience of partners in lignite mining business: Established in 1991 by Mr. Hansraj Patel and Mr. Harilal Devji Patel, HDE is a 'AA' class Government registered contractor. The partners have over three decades of experience in the lignite mining business. Strong order book position of HDE and reputed client base: HDE has a strong order book of ~INR1,279 crore as on June 30, 2018 (~15 times of operating income of FY2018), to be executed over the next four to five years. The orderbook consists of orders from reputed clients such as Gujarat Industries Power Company Limited (GIPCL) and Western Coalfields Limited (WCL). Repeat work orders from these reputed clients mitigate the counter party risk to a significant extent. Credit challenges Limited execution with slow moving contracts and elongated receivables: Two of the HDE's contracts have been slow moving -- Gujarat Industries Power Private Limited (GIPCL) owing to site clearances issues and VS lignite Power Private Limited (VSLP) owing to changed regulatory policy. This delay brought down the operating income in FY2017 to INR71.24 crore from INR91.38 crore in FY2016. Though revenues recovered partially to reach INR87.87 crore in FY2018 (provisional) with execution of other contracts, the company remains an average player in the industry it operates. Also, HDE has elongated receivables from VSLPL, the recovery of which remains crucial. Exposed to fuel price fluctuations: Profit margin remains exposed to fuel price variations in case actual usage is higher than stipulated levels or the price fluctuation is not covered by the escalation clause. Risks associated with timely financial closure and work order execution as per anticipated operating parameters: In the current fiscal, HDE has been allotted a project from WCL that outlays capital expenditure to the tune of ~Rs. 85 crore towards purchase of machinery and vehicle fleet. Hence, timely achievement of financial closure and execution of orders as per the expected operating parameters remain critical. Delay (if any) in execution of order book could stress the liquidity position of the entity. Moreover, timely fund infusion from the promoters in case of any shortfalls remains crucial. Business exposed to regulatory risks and LD clause in contract: The rates for over burden removal and lignite excavation and transportation are pre-defined and depends on the depth. Further, the contracts may have a calorific value-based LD clause and hence, the entity is required to fulfil both the volume and the quality requirements to avoid levy of liquidated damages. Moreover, the mining operations are associated with regulatory risks and as the entire responsibility of regulatory clearances, land acquisition and preparation of the detailed mining plan lies with the mine lease holder, any issues or delays on part of the principle can hinder the progress which could have a bearing on HDE's revenues. Risks associated with being a partnership concern: Any substantial capital withdrawal, given the partnership nature of the constitution, could adversely impact the capital structure of the firm. Established as a partnership firm in December 1991 by Mr. Hansraj Patel and Mr. Harilal Devji Patel, H. D. Enterprises (HDE) is an 'AA' class government registered contractor and is engaged in overburden removal and lignite excavation contract works. HDE's operations are majorly concentrated in Gujarat, Rajasthan and Maharashtra. The promoters have more than 30 years of experience in mining and have started mining operations under the firm "General Contract Company" for undertaking mining work of GMDC for the Panandhro mines at Kutch, Gujarat. HDE also has a 0.75-MW windmill at Surajbari, Kutch. In FY2018, on a provisional basis, HDE reported a net profit of INR1.54 crore on an operating income of INR87.87 crore, as compared to a net profit of INR0.75 crore on an operating income of INR71.24 crore in FY2017. IMPERIAL READYMADE: Ind-Ra Maintains D Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Imperial Readymade Garments Factory India Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR100 mil. Fund-based facilities maintained in Non- Cooperating Category with IND C (ISSUER NOT COOPERATING)/ IND A4 (ISSUER NOT COOPERATING) rating; -- INR35 mil. Non-fund-based facilities maintained in Non- Cooperating Category IND C (ISSUER NOT COOPERATING) /IND A4 (ISSUER NOT COOPERATING) rating; and -- INR53.18 mil. Long-term loans (long-term) Maintained in Non- Cooperating Category 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 Imperial Readymade Garments Factory India manufactures and exports an extensive range of apparels. INFRAHITE INFRASTRUCTURE: CRISIL Assigns B+ Rating to INR2cr Loan ----------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Infrahite Infrastructure Private Limited (IIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3 CRISIL A4 (Assigned) Cash Credit 2 CRISIL B+/Stable (Assigned) The ratings reflect the company's small scale of operations in the intensely competitive civil construction industry, exposure to geographical concentration risk and large working capital requirement. These weaknesses are partially offset by the extensive experience of its promoters. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations amid intense competition: Intense competition may continue to restrict scalability and limit the pricing power with suppliers and customers, thereby constraining profitability. Revenue is estimated at INR5.75 crore in fiscal 2018. * Exposure to geographical concentration risk: As revenue is solely generated from Kerala, risks related to geographical concentration may continue to constrain the business. * Working capital-intensive operations: Gross current assets (GCA) are estimated at 189 days as on March 31, 2018, due to large inventory resulting in large working capital requirement. The GCA days have been at around 180-300 days depending on the nature of work. Strength * Extensive experience of the promoters: Presence of around three decades in the civil construction segment has enabled the promoters to establish strong relationships with customers and suppliers. Outlook: Stable CRISIL believes IIPL will continue to benefit from the experience of the promoters. The outlook may be revised to 'Positive' if there is a substantial increase in revenue, profitability, and cash accrual along with prudent working capital management. Conversely, the outlook may be revised to 'Negative' if steep decline in revenue and profitability or stretched working capital cycle weakens financial risk profile and liquidity. IIPL, established in 2012, undertakes roads and bridge construction activities in Kerala. The company is promoted by Mr. P Niyas Babu. INTEGRATED SPACES: CRISIL Lowers Rating on INR25cr Loan to D ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facilities of Integrated Spaces Limited (ISL) to 'CRISIL D' from 'CRISIL BB- /Stable'. The downgrade reflects recent instance of delay by ISL's in servicing its debt obligations, on account of weak liquidity. The recent term debt repayments had been delayed by few days due to delayed receipt of customer advances. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Loan Against 5 CRISIL D (Downgraded from Property 'CRISIL BB-/Stable') Term Loan 25 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The rating also factors in susceptibility to project implementation risks marked by large pending project execution, slower bookings velocity and susceptibility to cyclicality inherent in real estate industry. However rating derives strength from promoters' extensive experience in Mumbai's real estate market. Key Rating Drivers & Detailed Description Weaknesses * Susceptibility to project implementation risks marked by moderate stage of construction in most projects: ISL is exposed to moderate project implementation risks because 3 out of its 4 ongoing projects are in early stages of execution. Thus, the company is yet to incur major construction costs for most of its projects leading to large funding requirements. * Slower booking velocity: Barring one project, the company has witnessed slower bookings in its ongoing projects. The incremental bookings in projects, such as Kamal, Aarya and Aahana have been limited over the past 18 months. Further delayed payments by customers had strained the liquidity amid large debt repayments. Improvement in bookings velocity and timely receipt of customer advances remain critical for maintaining liquidity. * Susceptibility of revenue to cyclicality inherent in the real estate industry: The real estate sector in India is cyclical because of sharp movements in land prices and a highly fragmented market structure. The real estate projects are affected by multiple property laws and non-standardised government regulations across states. The risk is compounded by aggressive timelines for completion, with shortage of manpower (project engineers and skilled labour). Strengths * Promoters' extensive experience and established position in Mumbai's real estate industry: The promoters, members of the Savla and Gala families, have experience of over two decades in developing real estate projects in Mumbai. ISL was initially set up in 1995 as a partnership firm, named Shah Construction and Company, by Gala and Savla families. The firm was reconstituted as a private limited company, under the current name in 2008. The company undertakes residential and commercial real estate development in and around Mumbai, and presently has 6 ongoing projects with saleable area of 0.3 million square foot. JAGDISH PRASAD: Ind-Ra Maintains BB LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Jagdish Prasad Shukla's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR30 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR90 mil. Non-fund-based limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 16, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1985, Jagdish Prasad Shukla executes civil construction work for public sector entities and various state government bodies, mainly for the public works department of Uttar Pradesh. JAYA INDUSTRIES: CRISIL Assigns B+ Rating to INR1cr Cash Loan ------------------------------------------------------------- CRISIL Ratings has assigned its ratings of 'CRISIL B+/Stable/CRISIL A4' on the bank facilities of Jaya Industries (Jaya). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6 CRISIL A4 (Assigned) Cash Credit 1 CRISIL B+/Stable (Assigned) The ratings reflect the firm's modest scale of operations, volatile operating profitability, large working capital requirement, and modest networth. These above weakness are partially offset by the partners' extensive experience. Key Rating Drivers & Detailed Description Weakness: * Modest scale of operation and volatile operating profitability: Despite longstanding presence in the business. Jaya's scale of operation has remained modest, with revenue of INR14-16 crore in recent years, except for fiscal 2017, when revenue was INR21.94 crore. Also, profitability varies from product to product. Profitability has remained volatile at 2-5.8% in the four fiscals through March 2017 (estimated at around 7% in fiscal 2018). Revenue should remain modest despite some improvement, and operating margin volatile over the medium term. * High working capital requirements: Operations are working capital intensive with gross current assets estimated at 247 days as of March 2018, and debtors and inventory at 90 and 15 days, respectively. Current assets of INR1.83 crore, with INR1.34 crore as free fixed deposit, add to the pressure on working capital. * Modest networth restricting scalability: Networth is modest around INR2.37 crore as of March 2018, restricting financial flexibility and ability to ramp up scale. The low initial capital and accretion to reserve will, likely, continue to constrain networth. Strengths: * Partners' extensive experience: Mr Sukhendu Barui, with his experience of around 15 years in the industry, and healthy relations with customers and suppliers should continue to help Jaya receive repeat orders, and negotiate credit terms. Outlook: Stable CRISIL believes Jaya's business risk profile will continue to benefit from its promoters' industry experience. The outlook may be revised to 'Positive' if a significant improvement in operating margin results in increase in cash accrual and networth. The outlook may be revised to 'Negative' if low cash accrual or increase in working capital requirement leads to pressure on liquidity. Set up in 1969, Jaya manufactures capital equipment such as homogenisers, pasteurisers, paneer maker, bulk milk coolers, and pressure vessels, and undertakes projects for dairy, ice cream, and food and beverages plant. The three manufacturing facilities in Kolkata, have ISO 9001: 2008 certification. JPV REALTORS: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained JPV Realtors Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR83 mil. Long-term loans maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR67 mil. Proposed long-term loans Maintained in non- cooperating category with Provisional IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Set up in 2008, JPV Realtors is engaged in the redevelopment and development of residential and commercial projects in Mumbai. KHWAHISH MARKETING: CRISIL Lowers Rating on INR12.5cr Loan to D --------------------------------------------------------------- CRISIL has downgraded the rating of bank facilities of Khwahish Marketing Private Limited (KMPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as the company has delayed the servicing of its debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 7.5 CRISIL D (ISSUER NOT COOPERATING: Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Proposed Long Term 12.5 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING: Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with KMPL for obtaining information through letters and emails dated January 24, 2018, March 7, 2018 and March 12, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KMPL. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, CRISIL has downgraded the rating to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as the company has delayed the servicing of its debt obligations. Analytical Approach For arriving at ratings, CRISIL has taken standalone view on the business and financial risk profiles of KMPL. This is because the critical input is only applicable on KMPL and the group entity has proposed bank facilities on account of this there is no clarity about sanctioned bank facilities. Incorporated in 2005 as private limited company, KMPL is a trader of iron and steel products. Based in Ghaziabad, Uttar Pradesh, the firm is managed and promoted by Mr. Prashant Sharma. KOTHARI PRIMA: Ind-Ra Lowers Long Term Issuer Rating to 'B' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Kothari Prima Private Limited's (KIPL) Long-Term Issuer Rating to 'IND B' from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR90 mil. (increased from INR40 mil.) Fund-based limits Long-term rating downgraded; Short-term rating affirmed with IND B/Stable/IND A4 rating; and -- INR110 mil. (reduced from INR160 mil.) Long-term loan due on June 2022 downgraded with IND B/Stable rating. KEY RATING DRIVERS The downgrade reflects KIPL's continued medium scale of operations as indicated by revenue of INR258 million in FY18 (FY17: INR237 million). As of July 2018, the company achieved a turnover of INR282 million; it had an order book of INR120 million, to be executed in the next 40-45 days. Ind-Ra expects the revenue to grow further in the near term on account of new customer additions. FY18 financials are provisional in nature. KIPL's RoCE was 0.31% and EBITDA margins were modest at 10.97% in FY18 (FY17: 8.22%). The improvement in the EBITDA margins was on account of a decline in other costs and an increase in sale of high-margin polyvinyl chloride (PVC) pipes. Ind-Ra expects the EBITDA margins to remain at similar levels in the near term. Despite the improvement, the credit metrics remained weak on account of high dependence on external debts and low EBITDA. Interest coverage (operating EBITDA/gross interest expense) improved to 0.9x in FY18 (FY17: 0.5x) and net leverage (Ind-Ra adjusted net debt/operating EBITDAR) to 10.6x (16.5x) on account of a decrease in interest costs to INR31 million (INR38 million) with repayment of debt and improvement in absolute EBITDA to INR28.34 million (INR20 million). The ratings remain constrained by KIPL's tight liquidity position as indicated by 99% average utilization of the working capital limits during the 12 months ended June 2018. Also, cash and cash equivalents were low at INR0.18 million at FYE18. However, the ratings derive support from KIPL's promoter's one decade of experience in the PVC pipe manufacturing business. RATING SENSITIVITIES Positive: A significant increase in the revenue and operating profitability leading to a sustained improvement in the overall credit metrics could be positive for the ratings. Negative: Any decline in the revenue and/or operating profitability leading to a further deterioration in the credit metrics would be negative for the ratings. COMPANY PROFILE Incorporated in 2012, KPPL is engaged in the manufacturing of PVC pipes and irrigation systems. KRISHNAIAH MOTORS: ICRA Moves B+ Rating to Not Cooperating ---------------------------------------------------------- ICRA has moved the ratings for the INR24.50 crore bank facilities of Krishnaiah Motors Private Limited to 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term-fund 24.50 [ICRA]B+(Stable); ISSUER NOT based limits COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Krishnaiah Motors Private Limited (KMPL) was established in 2002 by Major (Retd) P.T Choudary. The company is a MSIL dealer in passenger cars in Secunderabad under the name "ACER Motors"; KMPL is engaged in sales of new cars and used cars, service of vehicles along with sale of spare parts. The company has two showrooms at Trimulgherry and Kukatpally apart from three outlets at Kukatpally, Ghatkesar and Gajwel. The company also has two true value showrooms which are outsourced to third parties at Kukatpally and Trimulgherry. The company has two service centres at Trimulgherry and Narapally. The stockyard of the company is located at Alwal. The operations of the company are taken care by Major (Retd) P.T Choudary and his son Mr. Viren Choudary who have close to 10 years of experience in the Automobile dealership business. KSHEERAABD CONSTRUCTIONS: Ind-Ra Maintains BB- in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ksheeraabd Constructions Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR30 mil. Fund-based facilities maintained in non- cooperating category with IND BB- (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; -- INR500 mil. Non-fund-based facilities maintained in non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR300 mil. Proposed non-fund-based facilities maintained in non-cooperating category with Provisional IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 1, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Set up in August 2005, Ksheeraabd Constructions is a Hyderabad- based construction company, majorly focusing on the road segment. LANCO INFRATECH: Faces Liquidation as Lenders Reject Plan --------------------------------------------------------- The Hindu BusinessLine reports that Lanco Infratech Ltd is headed for the liquidation process with the Committee of Creditors rejecting the revised resolution plan. The diversified infrastructure company, which is faced with a piled up debt of over INR45,000 crore, is battling insolvency case in the National Company Law Tribunal, Hyderabad, the report says. BusinessLine relates that a revised resolution plan filed by Thriveni Earthmovers Private Ltd, which was placed before the Committee of Creditors by the Resolution Professional Savan Godiawala, in accordance with the Insolvency and Bankruptcy Code, 2016, was rejected. The report says the resolution plan filed by the same company earlier was also rejected. Following which, the company filed a revised resolution plan. However, this was also rejected, opening up the case for liquidation, the report states. Under the e-voting process taken up during July 25-26, the members of Committee of Creditors rejected it with only 66 per cent of the votes cast in favor. Therefore, the resolution plan did not go through, according to BusinessLine. Since the Committee of Creditors rejected the resolution plan, the application for liquidation under Section 33 (1) (a) of the Insolvency and Bankruptcy Code, 2016, was filed by the resolution professional in the NCLT late last week, BusinessLine says. BusinessLine relates that the Bench, which has been dealing with various petitions relating to the insolvency, has posted the matter for further hearing along with other pending matters on August 14. Some claims of employees are also under the consideration of the Tribunal. About Lanco Infratech Lanco Infratech Ltd was originally incorporated in 1993 as Lanco Constructions Ltd in Secunderabad, Telengana; its name was changed in 2000. The company provides Engineering, Procurement and Construction (EPC) services, largely to its own subsidiaries and affiliate entities. The Lanco group includes subsidiaries and affiliates operating across the infrastructure sector, including construction, power, EPC, infrastructure, and property development. LITL is the Lanco group's flagship company. NCLT had initiated insolvency resolution for Lanco on August 7, 2017, based on a petition filed by the company's lead lender IDBI Bank, Business Standard discloses. Lanco has a debt of over INR10,000 crore at the holding company level while the consolidated debt was more than INR40,000 crore, according to Business Standard. LUCKNOW SITAPUR: ICRA Moves D Rating to Not Cooperating ------------------------------------------------------- ICRA has moved the long-term ratings for the bank facilities of Lucknow Sitapur Expressways Limited (LSEL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- 142.00 [ICRA]D; ISSUER NOT COOPERATING; Based Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. LSEL, promoted and 99.64% owned by DSC Limited (DSC), is a Special Purpose Vehicle (SPV) promoted for undertaking a Build, Operate and Transfer (BOT) road project involving four laning of Lucknow - Sitapur section (from Km 488.270 to Km 413.200) of National Highway 24 (NH-24). The project was awarded by National Highway Authority of India (NHAI) to a consortium led by DSC. The Concession Agreement (CA), between LSEL and NHAI was executed on December 23, 2005. The project achieved provisional completion certificate in October 2011 and final completion in August 2012 against scheduled COD (commercial operation date) of May 2009. The company had capitalized INR490 crore as project cost. The project road starts at Sitapur near Sitapur intersection in the Sitapur district (Uttar Pradesh) and ends at Lucknow and involved total length of approx. 76 km. MEGHA AGROTECH: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Megha Agrotech Private Limited's (MAPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR45 mil. Fund-based facilities affirmed with IND BB+/Stable rating; and -- INR5 mil. Non-fund based facilities affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects MAPL's continued small scale of operations. Its revenue declined to INR572 million from INR618 million in FY17 and INR426 million in FY16 due to a fall in orders. FY18 financials are provisional. MAPL booked INR90 million in revenue for 1QFY19. Ind-Ra expects revenue to rise in FY19 in view of increase in daily orders and an increase in tender-based orders. The ratings factor in MAPL's healthy EBITDA margin of 10.6% in FY18 (FY17: 8.0%), as its return on capital employed was 39.0% (30.3%). The rise in the margin was due to a fall in indirect expenses that led to a rise in absolute EBITDA to INR61 million from INR50 million in FY17and INR24 million in FY16. However, the ratings remain supported by MAPL's comfortable credit metrics. Its interest coverage (operating EBITDA/gross interest expense) improved to 19.7x from 9.4x in FY17 and 4.1x in FY16 and net leverage (total adjusted net debt/operating EBITDAR) enhanced to negative 0.1x from 0.4x and 1.9x. The improvement in the metrics in FY18 and FY17 was due to an increase in absolute EBITDA and a reduction in interest expenses on account of lower utilization of the fund-based limits. Moreover, the ratings continue to be supported by a comfortable liquidity, indicated by an average 65.6% fund-based utilization for the 12 months ended June 2018. The ratings also continue to benefit from by the promoters' experience of around two decades in the irrigation industry. RATING SENSITIVITIES Negative: Any substantial decline in the scale of operations and EBITDA margin, along with any deterioration in the credit metrics, will be negative for the ratings. Positive: Any substantial rise in the scale of operations, along with a stable EBITDA margin and the credit metrics staying at the current levels, will be positive for the ratings. COMPANY PROFILE Incorporated in 1997, MAPL manufactures and trades drip irrigation and sprinkler irrigation equipment used for agriculture and horticulture purposes at its two sites in Bengaluru. MIL STEEL: ICRA Reaffirms D Rating on INR8.74cr Term Loan --------------------------------------------------------- ICRA has reaffirmed the long-term and short-term rating of [ICRA] D/[ICRA] D to the INR18.73-crore bank line facilities of MIL Steel and Power Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Cash Credit 4.10 [ICRA]D; Reaffirmed Long Term-Term Loan 8.74 [ICRA]D; Reaffirmed Short Term-Non fund Based 2.00 [ICRA]D; Reaffirmed Long Term/Short Term-Unallocated 3.89 [ICRA]D; Reaffirmed Rationale The rating reaffirmation considers the liquidity constraint faced by the company resulting in delays in servicing its debt obligations. The rating is also constrained by the intense competition faced by the company from a highly fragmented market, thereby restricting the company's pricing flexibility. The rating reaffirmation positively factors in the well established relationship of the company with its key customers in supporting business growth. Key rating drivers Credit strengths Established relationships with key customers expected to support business growth to an extent: Over the years, the company has developed strong relationship with domestic suppliers and customers which has supported the operations to a large extent. Credit challenges The company faces liquidity constraints in servicing the term loan debt obligations: There has been delay in the principal repayment for the term loans. Elevated debt levels along with high interest cost associated resulted in delay in debt servicing. Intense competition from highly fragmented market further restricts pricing flexibility: Operating in a highly fragmented industry, MSPL is exposed to intense competition from a number of established and small billet manufacturers both domestically and from low cost exporting countries, thereby limiting price flexibility. MIL Steel and Power Limited - the erstwhile Kanishk Ferrous and Energy Limited - is engaged in the manufacture of MS Billets, largely catering to localised demand from TMT and structural products players in the region. MSPL was a part of OPG Group before its acquisition by Meenakshi (India) Limited (MIL) Group on April 1, 2013. MSPL's operations remained suspended for most part of FY2014 due to power supply constraints, but have since re- commenced following commissioning of its continuous casting machine in its facility in place. MINOP INNOVATIVE: CRISIL Migrates C Rating to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the ratings on bank facilities and fixed deposit of Minop Innovative Technologies Pvt. Ltd. (MITL) to 'CRISIL C/FC/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 9 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 1 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Proposed Short Term 1 CRISIL A4 (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with MITL for obtaining information through letters and emails dated April 25, 2018 and May 9, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Minop Innovative Technologies Pvt. Ltd., which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Minop Innovative Technologies Pvt. Ltd. is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities and fixed deposit of Minop Innovative Technologies Pvt. Ltd. to 'CRISIL C/FC/CRISIL A4 Issuer not cooperating'. MITPL, incorporated in December 2005, has undertaken a contract for the development of the Muraidih underground mines (in Jharkhand) of BCCL and extraction of coal from Muraidih I and III seam. MITPL has obtained the contract under a consortium with it being the leader. MITPL is equally owned by families of Mr Biswanath Pan, Mr Sanjiv Kumar Ganeriwala, and Mr Pravin Parkeria. MITTAPALLI AUDINARAYANA: CRISIL Ups Rating on INR56cr Loan to B+ ---------------------------------------------------------------- CRISIL has upgraded its rating on the long term bank facility of Mittapalli Audinarayana Enterprises Private Limited (MAEPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Open Cash Credit 56 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects MAEPL's sustained operating performance and working capital management which is expected to continue over the medium term. The company booked revenues of INR57 crores in fiscal 2018 with operating margins estimated at around 8% which has been sustained at similar levels in the past 2 years. The GCA days stood at 488 days as on March 31, 2018 against 515 days as on March 31, 2017. The ratings reflect the extensive experience of its promoters in the tobacco industry and below average financial risk profile marked by its modest net worth, high gearing, and below average debt protection metrics, constrained on account of its large working capital requirements and its exposure to intense competition and regulatory risks in the tobacco industry, and the susceptibility to fluctuations in foreign exchange rates. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the tobacco-processing industry, and established relationship with customers. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: With revenue of INR57 Cr in the Fiscal 2018 the scale of operations remains small. Small scale of operations limits company's ability to take advantages associated with economies of scale that other players with large scale of operations are able to enjoy. * Below average financial risk profile: Company's financial risk profile is marked by modest net worth, high gearing and below average debt protection metrics. Gearing is expected to remain high on account of small scale of operation, hence small accretion to reserves and high working capital requirements resulting in dependence upon cash credit limits. Debt protection metrics are below average and are expected to remain so over the medium term. * High working capital requirements: Working capital requirement for the company remains high on account of stretched debtors and increasing inventory requirement of the company. Working capital requirements of the company are partially assuaged by the credit period of 3 to 4 months that the company is able to get from local raw material suppliers and stretched liquidity of credit period 3 to 4 months, Furthermore comfortable current ratio and no major long term debt gives some comfort to the liquidity position. * Exposure to intense competition and regulatory Risk: Company's business risk profile remains constrained on account of intense competition in the tobacco processing industry. Furthermore as the industry in many aspects are controlled by the government of India any non-favourable regulation may adversely impact the business risk profile of the company. Strengths * Extensive experience of promoters: Mittapalli was promoted in the year 1964 by Mr. Mitapalli Rama Rao. It gives the promoter an extensive experience in the tobacco processing industry which has enabled the firm to establish strong relationships with the customers and suppliers which ensures steady procurement of raw material and repeated orders from the customers. CRISIL believes that Mittapalli will continue to benefit from the extensive industry experience of promoters. Outlook: Stable CRISIL believes that Mittapalli will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationship with customers. The outlook may be revised to 'Positive' if the company registers a sustained improvement in its working capital cycle, resulting in improved liquidity or there is a substantial improvement in its capital structure on the back of sizeable equity infusion by its promoters. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in the company's profitability, or significant deterioration in its capital structure caused most likely because of a large debt-funded capital expenditure or a stretch in its working capital cycle. MAEPL was set up as a partnership firm in 1964 by Mr. Mittapalli Rama Rao and his sons Mr. Mittapalli Umamaheswar Rao and Mr. Mittapalli Siva Kumar. The firm was reconstituted as a private limited company in 2006. The company is engaged in tobacco leaves trading and is based in Guntur, Andhra Pradesh. NATIONAL STEEL: ICRA Lowers Rating on INR1,199.5cr Loan to D ------------------------------------------------------------ ICRA has revised the long-term rating for the INR218.50-crore bank facilities of National Steel and Agro Industries Limited (NSAIL) to [ICRA]D from [ICRA]BB (Negative). The short-term rating for the INR1414.82-crore bank facilities of the company has also been revised to [ICRA]D from [ICRA]A4 earlier. The ratings continue to be in the 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund- 200.55 [ICRA]D ISSUER NOT COOPERATING; based working revised from [ICRA]BB capital (Negative) Rating continues to facilities remain in the 'Issuer Not Cooperating' category Long-term fund- 17.95 [ICRA]D ISSUER NOT COOPERATING; based term loan revised from [ICRA]BB facilities (Negative) Rating continues to remain in the 'Issuer Not Cooperating' category Short-term non- 1,199.50 [ICRA]D ISSUER NOT COOPERATING; fund based revised from [ICRA]A4 Rating working capital continues to remain in the facilities 'Issuer Not Cooperating' Category Short-term 215.30 [ICRA]D ISSUER NOT COOPERATING; Unallocated revised from [ICRA]A4 Rating bank facilities continues to remain in the 'Issuer Not Cooperating' Category Rationale The rating action factors in irregularities in debt servicing by the company and is based on best available information. ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on debt servicing by the issuer. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Incorporated in 1985, National Steel and Agro Industries Limited (NSAIL) manufactures cold-rolled (CR) coils, galvanised plain (GP)/ galvanised corrugated (GC) coils and sheets, and colour coated coils and sheets. The company started as a CR coil manufacturer and undertook forward integration by expanding into GP/GC coils/ sheets and colour coated coils/ sheets divisions over the years. At present, the company has an installed capacity of 300,000 TPA in the CR coils division, 330,000 TPA in the GP/GC unit and 170,000 TPA in the colour coated coils division. In addition, it also has a captive power plant with an installed capacity of 6 MW. Besides manufacturing operations, the company derives ~50% of its revenues from trading of agro-commodities and steel products, with agri-commodities (primarily pulses) accounting for ~85% of its trading revenues NAV BHARAT: ICRA Maintains B Rating in Not Cooperating Category --------------------------------------------------------------- ICRA has maintained Nav Bharat Rice & General Mills (NRGM) bank facility rating in the non-cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term: Fund 6.00 [ICRA]B (Stable) ISSUER NON- Based-Cash Credit COOPERATION; Continues to remain under 'Issuer Not Cooperating' category Rationale The ratings for the INR6.00 crore bank facilities of NRGM continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); ISSUER NON-COOPERATION". ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available and limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. NRGM is a partnership firm, was set up in 1987 by Mr. Subhash Chand and Mr Rajinder Kumar. NRGM is engaged in trading and milling of basmati rice. It has a plant at Cheeka (Haryana) having milling capacity of 4 tonnes per hour and sortex capacity of 3 tonnes per hour. The firm has a fully automated plant. The by- products of basmati rice viz husk, rice bran and 'phak' are sold in the domestic market. NAVYA BAKE: CRISIL Assigns 'B' Rating to INR14cr Long Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term facility of Navya Bake Shop And Restaurant (NBSR). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 14 CRISIL B/Stable (Assigned) The rating reflects the exposure to implementation and stabilisation risks associated with the upcoming bakery and restaurant and intense competition in the bakery and restaurant business. These weaknesses are partially offset by the extensive experience of the partners and their funding support. Key Rating Drivers & Detailed Description Weaknesses * Exposure to implementation risks: The firm is constructing a bakery cum restaurant cum lodging hall in Kerala. Around 70% of the work is complete and operations are expected to commence from January 2019. Timely completion and stabilisation of operations will be a key rating sensitivity factor. * Exposure to intense competition: The bakery and restaurant business exhibits intense competition due to the presence of several unorganised players. Strength: * Extensive experience of partners and their funding support: Benefits from the partners' experience of more than two decades through 20 shops owned by them in Kerala should support the business. Further, their ability to bring in funds in case of need to ensure timely repayment aids liquidity. Outlook: Stable CRISIL believes NBSR will continue to benefit from the extensive experience of its partners. The outlook may be revised to 'Positive' if more-than-expected cash accrual is generated. The outlook may be revised to be 'Negative' if project is not completed on time or cash accrual generated is lower-than- expectation. Established in 2015, NBSR, a partnership firm, is constructing a bakery cum restaurant cum hotel. The total area of the building is 1946.82 Square Meter including basement and terrace hall. NEERA BHIMA: CRISIL Assigns B+ Rating to INR22cr Loan ----------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank loan facility of Neera Bhima S.S.K.Ltd. (NBSSKL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Working Capital Loan 22 CRISIL B+/Stable (Assigned) The rating reflects the society's large working capital requirement, below-average financial risk profile, and exposure to regulatory changes and cyclicality in the sugar industry. These weaknesses are partially offset by established presence and extensive experience of the promoters in the sugar industry, and fully integrated operations. Key Rating Drivers & Detailed Description Weaknesses * Large working capital requirement: Gross current assets are estimated at 219 days as on March 31, 2018, due to sizeable inventory. * Below-average financial risk profile: The financial risk profile is constrained by weak capital structure (gearing of over 5 times as on March 31, 2018) and modest interest coverage ratio of 1.5 times in fiscal 2018. Liquidity is constrained by tightly matched cash accrual and debt obligation, but is supported by funding support from society members and healthy cash balance. * Exposure to regulatory changes and cyclicality in the sugar industry: The sugar industry is highly regulated and exposed to risks related to seasonality in sugar cane production, which may constrain revenue and operating margin. Strengths * Established position in the sugar industry, and healthy relationships with member farmers: The society has been operational since 2001, and has integrated operations. It has sugarcane crushing capacity of 3500 tonne per day, a distillery with output of 30 kilolitre per day, and a co-generation unit with 18-megawatt capacity. The integrated operations support revenue and profitability. Outlook: Stable CRISIL believes NBSSKL will continue to benefit from its established relationships with farmers in its command area, and from its integrated operations. The outlook may be revised to 'Positive' if sustained increase in revenue and profitability strengthens the financial risk profile. The outlook may be revised to 'Negative' if lower cash accrual, a stretch in working capital cycle, or large, debt-funded capital expenditure weakens the financial risk profile and liquidity. NBSSKL is a cooperative sugar mill based at Indapur in Pune (Maharashtra). It was set up in 2001 by Mr Harshwardhan Patil, and is currently chaired by Mr Lalasaheb Pawar. NICE MARINE: CRISIL Lowers Rating on INR5cr Cash Loan to D ---------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Nice Marine Exports (India) Private Limited (NMEPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as the account has been classified as an NPA. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Packing Credit 3 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') CRISIL has been consistently following up with NMEPL for obtaining information through letters and emails dated September 21, 2017 and October 26, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Nice Marine Exports (India) Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Nice Marine Exports (India) Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has downgraded its rating on the long-term bank facilities of NMEPL to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as the account has been classified as an NPA. Incorporated in April 2012, NMEPL is based in Hyderabad, and trades in shrimp and other fishes. PERFECT ENGINEERS: CRISIL Reaffirms B+ Rating on INR6cr Loan ------------------------------------------------------------ CRISIL has reaffirmed its ratings on the bank facilities of Perfect Engineers & Contractors (PEC) at 'CRISIL B+/Stable/ CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL A4 (Reaffirmed) Cash Credit 6 CRISIL B+/Stable (Reaffirmed) The rating continue to reflect modest scale of operation and its susceptibility to risk related to tender based nature of operations. These weaknesses are partially offset by partners extensive in civil construction industry. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and susceptibility to intense competition in the civil construction industry: Intense competition in the domestic civil construction sector, from large players and small regional players, keeps the scale of operations modest, and constrains profitability. This is reflected in turnover of INR13 crore for fiscal 2018. Moreover, the operations are focused only in Kerala and any slowdown in industry or force majeure event in Kerala could adversely impact the business risk profile. * Susceptibility to risks related to tender based nature of operations: PEC operates in a tender-based business. Because of a tender-based business model, the firm faces competition from a number of companies based in Kerala and outside. As majority of sales of PEC are tender-based, revenues depend on the firm's ability to bid successfully for tenders. Furthermore, the tender- based business model also restricts PEC's pricing power and hence profitability. Strength * Extensive experience of the partners in the civil construction industry: The two decade-long experience of the managing partners, Mr M Suneel and Mr M Sajeevan, and their established track record of executing civil contracts for public works departments of the Kerala state government and other private players, has resulted in repeat orders and will continue to support the business risk profile. Outlook: Stable CRISIL believes PEC will continue to benefit from the extensive experience of its promoters over medium term. The outlook may be revised to 'Positive' if significant growth in revenue and profitability leads to substantial cash accrual and strengthens the financial risk profile. The outlook may be revised to 'Negative' if the firm reports low revenue or profitability, or if a stretch in the working capital cycle, or any major capex plans, weakens the financial risk profile, particularly liquidity. PEC was set up as a partnership firm in 1993. Operations of the Palakkad (Kerala)-based firm, are managed by Mr Sunil and Mr Sajeevan. PERMANENT MAGNETS: CRISIL Reaffirms and Then Withdraws C Rating --------------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities of Permanent Magnets Limited (PML) and subsequently withdrawn the ratings at the company's request and on receipt of a no-objection certificate from the bankers. The withdrawal is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL C (Rating reaffirmed and Withdrawn) Export Bill 3.2 CRISIL C (Rating reaffirmed Negotiation and Withdrawn) Letter of Credit 15.0 CRISIL A4 (Rating reaffirmed and Withdrawn) Proposed Long Term 1.23 CRISIL C (Rating reaffirmed Bank Loan Facility and Withdrawn) Term Loan 2.57 CRISIL C (Rating reaffirmed and Withdrawn) PML was set up in 1960 and was taken over by the Taparia group in 1965. The company manufactures alnico magnets, magnetic assemblies, hi-permeability magnetic components, and parts and accessories of electricity meters. Its manufacturing facility located at Mira road, Mumbai. PICSON CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR6cr Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the long-term bank facilities of Picson Construction Equipments Private Limited (PCEPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (Reaffirmed) Inland/Import Letter of Credit 1.5 CRISIL A4 (Reaffirmed) The rating continues to reflect modest-yet-growing scale of PCEPL's operations in the highly fragmented engineering goods industry, large working capital requirement, and susceptibility to fluctuations in raw material prices. These weaknesses are partially offset by the experience of the promoters. Analytical Approach Unsecured loans extended to PCEPL by the promoters have been treated as neither debt nor equity. That is because these loans are expected to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weakness * Modest-yet-growing scale of operations amid intense competition Intense competition may continue to restrict scalability and limit pricing power, thereby constraining profitability. Revenue (Rs 35 crore in fiscal 2018) is expected to increase over the medium term, with the launch of new products. * Large working capital requirement: PCEPL will have large working capital requirement, with gross current assets expected at 205-300 days, mainly because of substantial amount of inventory maintained. These working capital requirement will be funded partly through credit from suppliers. * Susceptibility to fluctuations in raw material prices: As price of the key raw material (casting and steel) accounts for over 70% of operating cost, even a slight variation in their prices drastically impact profitability. Strengths * Experience of promoters: Benefits from the promoters' experience of around three decades, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should continue to support the business. Outlook: Stable CRISIL believes PCEPL will continue to benefit from the experience of the promoters. The outlook may be revised to 'Positive' if there is significant improvement in scale of operations or capital structure. Conversely, the outlook may be revised to 'Negative' if any major, debt-funded capital expenditure, or stretched working capital cycle weakens financial risk profile and liquidity. PCEPL, incorporated in 2010 at Vadodara (Gujarat), is one of the leading manufacturers and suppliers of various sizes and types of reduction, mining, crushing machineries and other allied products under the brand, Pics International; it is a familiar name in reduction technology, both locally and globally. Mr G Nair and Mr K Shah are the promoters. R K M POWERGEN: ICRA Maintains D Rating in Not Cooperating Cat. --------------------------------------------------------------- ICRA has maintained R K M Powergen Private Limited (RPPL) bank facility rating in the non-cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 1159.63 [ICRA]D ISSUER NOT COOPERATING; Term Loan Continues to remain under ISSUER NOT COOPERATING Non Fund 255.00 [ICRA]D ISSUER NOT COOPERATING; Based-Bank Continues to remain under ISSUER Guarantee NOT COOPERATING Rating Action The rating for the INR1414.63 crore bank facilities of RPPL continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". ICRA has been trying to seek information from the entity to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA based on the best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Rationale The rating factors in the continued delays in servicing the debt obligations by the company owing to delay in commencement of operations of its 1440 MW thermal power project in Chhattisgarh. The delays are caused by land acquisition related issues coupled with delays in securing funding for project cost overrun. The project cost has significantly increased from the appraised value due to escalation in imported equipment cost caused by rupee depreciation against dollar and escalation in pre-operative expenses, mainly interest during construction. The rating also factors in the demand risks for the project, as the company is yet to tie up long-term power purchase agreements (PPAs) for the entire capacity. However, ICRA takes note of the presence of the 25-year PPA with the Uttar Pradesh electricity distribution companies for 350 MW. Further, the ICRA takes note of the availability of the fuel supply agreement (FSA) for about 63% of the fuel requirement. RPPL is a special purpose vehicle promoted by the Chennai based R.K. Powergen Group (74% holding) and the Malaysia based Mudajaya Group (26% holding) for the development of a 1440 MW domestic coal-based thermal power project in Janjgir Champa district of Chhattisgarh in two phases (Phase 1 of 360 MW (1 x 360) and Phase 2 of 1080 MW (3 x 360)). The company has commissioned three out of the four units so far. The company has a long-term PPA with the Uttar Pradesh distribution companies for 350 MW and FSAs with South Eastern Coalfields Limited for meeting part of the coal requirement. RBA FINANCE: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated RBA Finance Private Limited's bank loans' 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: -- INR141 mil. Bank loans migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on July 24, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE Formed in 1996, RBA Finance is a non-bank finance company - asset finance company registered with the Reserve Bank of India that finances automobiles. Its head office is in Agra, Uttar Pradesh. ROCKEIRA ENGINEERING: Ind-Ra Assigns BB+ Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Rockeira Engineering LLP (Rockeira) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR100.0 mil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating; -- INR225.0 mil. Non-fund-based working capital limits assigned with IND A4+ rating; -- INR50.0 mil. Proposed fund-based working capital limits* assigned with Provisional IND BB+/Stable/Provisional IND A4+ rating; and -- INR125.0 mil. Proposed non-fund-based working capital limits* assigned with Provisional IND A4+ rating. * The ratings are provisional and shall be confirmed upon the sanction and execution of the loan documents for the above facilities by Rockeira to the satisfaction of Ind-Ra. KEY RATING DRIVERS The ratings reflect Rockeira's increasing yet small scale of operations as indicated by revenue of INR504.0 million in FY18 (FY17: INR369.5 million). The growth in revenue was on account of receipt of additional orders and timely execution of existing orders. The firm's RoCE was 22% and EBITDA margin was healthy at 10.7% in FY18 (FY17: 11.1%). EBITDA margins remained in the range of 13.5%-9.1% during FY15-FY18. FY18 financials are provisional in nature. However, the ratings are supported by Rockeira's strong order book of INR4,000.0 million (about 8x of FY18 revenue) at end-June 2018. The ratings also benefit from the firm's strong credit metrics and comfortable liquidity position. Net financial leverage (total adjusted net debt/operating EBITDAR) improved to 1.0x in FY18 (FY17: 1.6x) and EBITDA interest coverage (operating EBITDA/gross interest expense) to 6.2x (4.8x), driven by a rise in absolute EBITDA to INR53.8 million (INR41.0 million). Its average peak utilization of the fund-based limits was 85.60% during the 12 months ended June 2018. Net working capital cycle improved to 11 days in FY18 (FY17: 23 days) due to low inventory holding period. The ratings draw comfort from Rockeira's partners' over two decades of experience in the civil construction business. RATING SENSITIVITIES Positive: A substantial increase in the revenue along with an improvement in the EBITDA margin leading to a sustained improvement in the credit metrics will be positive for the ratings. Negative: A decline in the revenue or EBITDA margin resulting in deterioration in the credit metrics on a sustained basis will be negative for the ratings. COMPANY PROFILE Hyderabad-based Rockeira was established as a partnership firm in 2005 under the name of M/s Srikant Impex. It is primarily engaged in construction of road and railway bridges and waste-to-energy projects. SAIBABA SOLVENT: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Saibaba Solvent Industries LLP'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: -- INR100.00 mil. Fund-based working capital limit migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR86.99 mil. Term loan due on December 2023 migrated to Non- Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR0.73 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 11, 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 July 2014, Saibaba Solvent Industries manufactures rice bran oil and de-oiled cakes in Nagpur. The company is managed by Mr. Santulal Kewalram Jamtani, Mr. Pradeep Sushilkumar Saraogi and Ms. Lata Tulsidas Tajpuria. SANTHAGARIK AGRO: CRISIL Hikes Rating on INR5cr Cash Loan to B+ --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Santhagarik Agro Private Limited (SAPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Term Loan 2.55 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects improvement in business risk profile, due to enhanced capacity to 10 tonne per hour (tph) from 5 tph earlier. Also, the improvement in financial risk profile is reflected in total outside liabilities to tangible networth (TOLTNW) ratio of 3 times as on March 31, 2018 and comfortable debt protection metrics with interest coverage ratio and net cash accrual to adjusted debt of 2.5 times and 0.14 time, respectively, in fiscal 2018. The rating also reflects a modest scale in the intensely competitive industry and working capital-intensive operations. These weaknesses are partially offset by the promoters' extensive experience in the rice milling industry. Analytical Approach For arriving at the rating, CRISIL has treated unsecured loans (Rs 1.94 crore estimated as on March 31, 2017) extended by the promoters as neither debt nor equity in calculating the financial ratios. This is because these loans are interest-free and are expected to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale in a highly fragmented industry: Operating income though improved, yet remains modest at INR32.9 crore for fiscal 2018 in the competitive rice industry and is expected to remain at similar level over the medium term. * Working capital-intensive operations: Gross current assets (GCAs) are estimated at 120- 160 days, driven by inventory and receivables of 100-130 and 20-30 days, respectively, as on March 31, 2018. Moreover, payables are at an estimated 25-40 days, over three years through fiscal 2018. Operations are likely to remain moderately working capital intensive over the medium term. Strengths * Promoters' extensive experience: Benefits of extensive experience of the promoters over eight year in the rice milling industry has helped the company establish strong relationships with customers and suppliers. Outlook: Stable CRISIL believes SAPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if better-than-expected revenue and profitability strengthens cash accrual and hence, the financial risk profile. The outlook may be revised to 'Negative' if aggressive, debt- funded capital expenditure or a stretch in working capital cycle, weakens the financial risk profile. Incorporated in 2003, SAPL mills and process paddy into parboiled rice, rice bran, broken rice, and husk. It has an installed paddy milling capacity of 10 tph. The current capacity utilisation is at 70-80%. The manufacturing facility is located at Maharajganj, Uttar Pradesh. SARA INTERNATIONAL: CRISIL Withdraws D Rating on INR50cr Loan ------------------------------------------------------------- CRISIL has withdrawn its ratings on the bank facilities of Sara International Private Limited (SIPL; part of the Sara group) at the company's request and after receiving a no-objection certificate from Bank. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL D (Migrated from 'CRISIL D ISSUER NOT COOPERATING' and Withdrawn) Cash Credit 50 CRISIL D (Migrated from 'CRISIL D ISSUER NOT COOPERATING' and Withdrawn) Foreign Documentary 25 CRISIL D (Migrated from Bills Purchase 'CRISIL D ISSUER NOT COOPERATING' and Withdrawn) Letter of credit & 70 CRISIL D/Issuer Not Bank Guarantee Cooperating CRISIL has been consistently following up with SIPL for obtaining information through letters and emails dated February 7, 2018 and February 14, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SIPL. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for SIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower.' Based on the last available information, the ratings on Cash Credit and Letter of credit & Bank Guarantee of SIPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'; while ratings on Proposed Fund-Based Bank Limits and Letter of credit & Bank Guarantee migrated to 'CRISIL D/CRISIL D'. CRISIL has withdrawn its ratings on the bank facilities of SIPL at the company's request and after receiving a no-objection certificate from Bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank facilities. CRISIL has also withdrawn its ratings on the INR50 crore Letter of credit & Bank Guarantee and INR26 crore Proposed Fund-Based Bank Limits bank facilities of SIPL at the company's request and after receiving a NO Due certificate from Bankers. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank facilities. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SIPL and Sara Textiles Ltd (STL). This is because the two companies, together referred to as the Sara group, are under common directors and management. SIPL has a 64% stake in STL's equity, and is likely to support STL in case of exigencies. SIPL has also provided an undertaking to CRISIL for timely servicing of STL's debt, in case the latter does not have the requisite cash flow to meet principal and interest obligations in a timely manner. SIPL, set up by Mr D P Singh in 1973, trades in iron ore fines, hot-rolled steel coils, textiles, cement, steel, and coal. The company had formed a joint venture, Gopalpur Port Ltd, with Odisha Stevedores Ltd for developing the port in Gopalpur, Odisha. STL, incorporated in 2005, manufactures terry towels and trades in bath mats and bed sheets. The company has its manufacturing facility in Nalagarh, Himachal Pradesh. It is attempting to increase the share of its manufactured products in its total sales. SGR EXIM: Ind-Ra Migrates B- LT Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated SGR Exim Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR32 mil. Fund-based limits migrated to Non-Cooperating Category with IND B- (ISSUER NOT COOPERATING) rating; and -- INR86 mil. Non-fund-based limits migrated to Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 11, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SGR Exim, incorporated in December 2014, is engaged in trading of agricultural products such as rice, wheat, red lentil and green gram. SHREE KRUSHNA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shree Krushna Enterprises' 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 D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR85 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 13, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Shree Krushna Enterprises, a partnership firm, is a part of the Jajodia group, which is headed by Mr. Pawan Kumar Jajodia. It is engaged in the trading of pulses, sugar and edible oil. SHREE VARDHMAN: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Shree Vardhman Developers Private Limited's (SVDPL) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR1.0 mil. Fund-based limits affirmed with IND B+/Stable/ IND A4 rating; and -- INR98.9 mil. Non-fund-based limits affirmed with IND A4 rating. KEY RATING DRIVERS The affirmation reflects the time and cost overrun risks associated with SVDPL's ongoing residential project Shree Vardhman Olive in Sohna, Haryana. The company postponed the project launch to December 2018 from December 2016 to mitigate the risk of low demand due to the government's November 2016 demonetization drive and adverse market conditions. The project, which has 733 flats, is now likely to be completed by March 2022 (Earlier: March 2020). The company also postponed availing the term loan facility by two years to 4QFY19, thereby mitigating the risk of stress on cash flows. The ratings remain constrained by the company's continued small scale of operations as reflected by revenue of INR230.5 million in FY18 (FY17: INR213.41 million). FY18 financials are provisional in nature. The ratings, however, continue to be supported by SVDPL's project's easy accessibility to Delhi-National Capital Region and nearby areas, and its promoters' over three decades of experience in the real estate sector. RATING SENSITIVITIES Negative: Any delay or cost overrun in the Sohna project leading to a stress on the cash flows will be negative for the ratings. Positive: Timely project completion along with substantial sale of housing units leading to strong cash flow visibility will be positive for the ratings. COMPANY PROFILE Incorporated on October 21, 2005, SVDPL undertakes construction of residential and commercial buildings. Its registered office is located in New Delhi. SIYARAM METAL: ICRA Moves B- Rating to Not Cooperating Category --------------------------------------------------------------- ICRA has moved the long-term rating for the bank facilities of Siyaram Metal Udyog Private Limited (SMUPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B- (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 35.00 [ICRA]B- (Stable) ISSUER NOT Cash Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Siyaram Metal Udyog Private Limited (SMUPL) is a metal merchant based in Jamnagar, Gujarat and has been in operations for the last two decades. The company primarily trades non-ferrous metallic scrap in and around Jamnagar. SMUPL imports non-ferrous scrap. The product profile includes brass scrap, ingots and other copper alloys, as well as zinc. SME STEELS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated SME Steels 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: -- INR182.5 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERTAING) /IND A4+ (ISSUER NOT COOPERTAING) rating; and -- INR2.1 mil. Non-fund-based facilities migrated to Non- Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 20, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SME Steels is engaged in the trading of steel flat and long products such as coils, plates, structural and thermo-mechanically treated bars. SOHO INFRASTRUCTURE: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Soho Infrastructure Private Limited B-22, Ground Floor, Village-Gazipur Delhi DL 110096 IN Insolvency Commencement Date: June 14, 2018 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: December 11, 2018 Insolvency professional: Anupma Aggarwal Interim Resolution Professional: Anupma Aggarwal B-132 Anand Vihar, New Delhi, Delhi 110092 E-mail: anupma@indialiason.com Last date for submission of claims: July 20, 2018 SONA BEVERAGES: ICRA Withdraws B- Rating on INR10cr Loan -------------------------------------------------------- ICRA has withdrawn the long-term rating of [ICRA]B- assigned to the INR8.00-crore term loan and INR2.00-crore cash credit facility of Sona Beverages Private Limited (SBPL). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limit 10.00 [ICRA]B- (Stable); Withdrawn Rationale The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension and as desired by the company. Incorporated in 2006, Sona Beverages Private Limited (SBPL) manufactures beer and its brewery is located at Borai Industrial Area in Durg district of Chhattisgarh. The installed capacity of the plant is 3,00,000 hecto litre (HL) per annum. The manufacturing operations of the company started in April 2014 and at present, SBPL has contract-bottling agreements with SAB Miller India Ltd. and Kaama Breweries Pvt. Ltd. Besides, SBPL manufactures beer under its own brands, Simba and Sumo. SRINIDHI REAL: ICRA Maintains 'B' Rating in Not Cooperating ----------------------------------------------------------- ICRA has maintained Srinidhi Real Estate And Constructions (SREAC) bank facility rating in the non-cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Unallocated 8.00 [ICRA]B(Stable) ISSUER NOT COOPERATING; Rating continue to be in 'Issuer not cooperating' category Rationale The rating of INR8.00-crore bank facilities of SREAC continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable)ISSUER NOT COOPERATING". The rating is based on limited or no updated information on the entity's performance since the time it was last rated in April 2015. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with SREAC, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Srinidhi Real Estate and Constructions was incorporated as a partnership firm on 19 November 2012 with 18 partners under Indian Partnership Act 1932 with Registrar of Firm, Adilabad. The firm is involved in development of real estate (acquiring land and developing by plotting and constructing structures, apartments, independent houses, etc). The promoters have earlier experience in real estate and have completed Manjunath Apartment (a G+3 floor apartment) in Mancherial in the past. ST. GREGORIOS: CRISIL Lowers Rating on INR6.5cr LT Loan to D ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facilities of St. Gregorios Dental College (SGDC) to 'CRISIL D' from 'CRISIL B/Stable'. The downgrade reflects recent instance of delay by SGDC in servicing its debt obligations, on account of weak liquidity. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Long Term Loan 6.5 CRISIL D (Downgraded from 'CRISIL B/Stable') The trust has a weak financial risk profile marked by high gearing and weak debt protection metrics. The trust is exposed to intense competition from other educational institutes in Kerala, and is susceptible to regulatory changes in the education sector. The trust has a strong reputation in the education sector, and provides variety of course offerings. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Despite being in operation for more than a decade now, the collection of the trust were small at INR5.7 cr in 2016-17. STGRDC faces stiff competition from many dental colleges in Kerala district like Government dental college, Indira Gandhi Institute of dental college etc * Weak financial risk profile: CRISIL believes that the trust financial risk profile is expected to remain weak due to small net worth, high gearing and continued weak liquidity. Strengths * Established regional position in education sector, with variety of course offerings: STGRDC has a reputation of being a quality education provider with good infrastructural facilities. STGRDC offers courses in PG (Prosthodontics, Endodontics, Orthodontics). CRISIL believes that the company will benefit from its established regional position in education sector. SGDC was set up in 2005 by Mr. Thambu George Thukalan, Its run by Malankara Jacobite Syrian Christian Education Trust under the Jacobite Syrian Christian Church- a non profit organization formed in 1996. Profit after tax (PAT) and net sales are at INR(0.7) crore and INR5.9 crore, respectively, for fiscal 2017; PAT was NM crore on net sales of NM for the previous fiscal. STYLEONE RETAIL: CRISIL Migrates D Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Styleone Retail Private Limited (SRPL) to CRISIL D Issuer not cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 28.25 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 23 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Proposed Working Capital Facility 3 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SRPL for obtaining information through letters and emails dated November 13, 2017 and January 17, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Styleone Retail Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Styleone Retail Private Limited is consistent with 'Scenario 2 outlined in the 'Framework for Assessing Consistency of Information with BBB rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Styleone Retail Private Limited to CRISIL D Issuer not cooperating'. Set up in 2008, SRPL retails ready-made garments, sarees, cosmetics, toys and accessories. It has two multi-brand outlets in Chennai with total built-up area of around 70,000 square feet. Its day-to-day operations are managed by Mr. Vinod Sharma. SU-KAM POWER: Carlyle, Aion and Schneider Among Firm's Suitors -------------------------------------------------------------- Livemint reports that global private equity fund Carlyle and special situations investor Aion Capital along with French energy management company Schneider Electric are among the potential suitors for Su-Kam Power Systems which is facing corporate insolvency proceedings, two people directly aware of the development said. According to Mint, the persons said the suitors have submitted an expression of interest (EoI) and are expected to put a binding offer by the August 10 deadline. "There are three more potential bidders apart from these three," one of the persons told Livemint. While the identities of the other three bidders were not immediately known, the persons said that two are distressed assets funds while the third is an individual bidder, the report says. For Carlyle, which has only invested in pure play growth and buyout deals in India so far, the potential transaction would mark its foray into the bankruptcy space where several large assets have changed hands in the recent months. Mint was the first to report on June 25 that Carlyle Group, which has recently announced the final close of its fifth Asia buyout fund at $6.55 billion, was actively looking at investment opportunities in India's distressed assets space and was evaluating consumer focussed businesses which that are expected to come up for change of control under the Insolvency and Bankruptcy code (IBC). Mint had reported on April 30 that strategic bidders such as Greaves Cotton, Luminous Group and Microtek had shown early interest in acquiring the company and were in negotiations with the lenders to potentially acquire it but have not yet put a formal expression of interest. Mint notes that the submission of expression of interest by Carlyle and Aion underlines the growing interest of large private equity funds in cracking deals in the insolvency space where several well known consumer brands are likely to be up for change of control. According to Mint, industry watchers said that the next round of insolvency cases are likely to see greater participation from distressed assets funds. "Going ahead we expect active participation from private equity funds in resolving corporate insolvency cases," the report quotes KVS Manian, president for corporate, institutional & investment banking at Kotak Mahindra Bank, as saying. "The deal sizes in some of the early cases were way too large for the funds to participate but there will be far more activity in the mid-size space." Su-Kam Power Systems Ltd. manufactures power backup and solar products for residential, commercial, and industrial applications worldwide. It offers inverters for homes, big homes, and businesses; on-line UPS for industries and commercial use; and solar street lighting systems, solar network monitoring systems, solar battery management systems, solar battery management systems, and more for homes, offices, hospitals, schools, villages, and petrol pumps. The company has total unpaid debt of close to INR370 crore of which IDBI Bank and SBI own the largest share, according to Mint. Su-Kam was referred to the National Company Law Tribunal (NCLT) for bankruptcy proceedings by the State Bank of India (SBI) in November last year and was admitted in April by the court, following which Rajiv Chakraborty, Partner PwC India, was appointed resolution professional for the company, Mint discloses. TNR INDUSTRIES: CRISIL Migrates C Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of M/s. TNR Industries Private Limited (TIPL) to 'CRISIL C Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 3.9 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 4.1 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with TIPL for obtaining information through letters and emails dated May 29, 2018, July 10, 2018 and July 16, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of M/s. TNR Industries Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on M/s. TNR Industries Private Limited is consistent with 2' outlined in the 'Framework for Assessing Consistency of Information with BBB category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of M/s. TNR Industries Private Limited to 'CRISIL C Issuer not cooperating'. TIPL, set up in 2011, manufactures RMC used in the construction industry, and UPVC panels. Based in Hyderabad, the company is promoted by Mr T Narsimha Rao and his family. VAISHNAVI LIFECARE: ICRA Hikes Rating on INR5.72cr Loan to B+ ------------------------------------------------------------- ICRA has upgraded the long-term rating assigned to the INR5.97- crore1 (revised from INR6.59-crore) fund-based limits of Vaishnavi Lifecare Pvt. Ltd. from [ICRA]C+ ISSUER NON-COOPERATION/ Non- cooperation due to NDS non-submission to [ICRA]B+. ICRA has upgraded the long-term rating to [ICRA]B+ (Stable) and reaffirmed the short-term rating at [ICRA]A4 assigned to the INR0.63 crore (enhanced from INR0.01 crore) unallocated limits of the company. The outlook on the long-term rating is 'Stable'. The rating is removed from non cooperation category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 5.72 [ICRA]B+ (Stable); Upgraded Based TL from [ICRA]C+ and removed from Issuer not cooperating category Long Term-Fund 0.25 [ICRA]B+ (Stable); Upgraded Based CC from [ICRA]C+ and removed from Issuer not cooperating category Long-Term/Short 0.63 [ICRA]B+ (Stable); Upgraded Term Unallocated from [ICRA]C+/[ICRA]A4 Reaffirmed and removed from Issuer not cooperating Category Rationale The rating upgrade takes into consideration the improvement in VLPL's revenues following increased number of tie-ups with doctors, hospitals, corporate clients and insurance companies and improvement in its capital structure following equity infusion in FY2018. The ratings also consider the extensive experience of the directors and the recently appointed doctors/ consultants in the healthcare industry which has also benefitted the company in expanding its footprint in the city, thereby, aiding growth prospects. With most of the doctors/consultants also being the shareholders in the company, the risk of attrition at the top level remains low. The ratings are also supported by the comprehensive range of diagnostic tests offered by the diagnostic centre backed by sound infrastructure facility and advanced equipment. The ratings also consider the expected growth in scale of operations and revenues based on its expansion plans of opening three collection centres in the city and introduction of new specialities in the current fiscal. The ratings, however, remain constrained by the VLPL's modest scale of operations, high geographical concentration risk with operation of a single diagnostic centre in Bangalore and its limited track record of operations. Besides, the company has substantial debt-servicing obligations on account of the term loan availed to set up the diagnostic centre, which are likely to keep its cash flows under pressure in the near to medium term. Significant capital expenditure plans to be implemented in the current fiscal would also exert pressure on liquidity. However, expected funding support from doctors/consultants provides comfort. The ratings continue to factor in the competition from other organized and unorganised players in the diagnostics industry in Bangalore which restricts the growth potential and pricing flexibility to an extent. Outlook: Stable The Stable outlook reflects ICRA's expectation that VLPL will continue to benefit from the extensive experience of its management in the healthcare industry. The outlook may be revised to 'Positive' in case of significant improvement in revenues and profitability aided by successful operations of the upcoming collection centres and new specialities. The outlook may be revised to 'Negative' if cash accruals are lower than expected or if any stretch in the working-capital cycle or debt-funded capital expenditure weakens the liquidity. Key rating drivers Credit strengths Moderate growth in operating income in FY2018, revenues expected to increase further in FY2019: VLPL's operating income witnessed a growth of about 13% during FY2018, owing to increased number of tie-ups with doctors, hospitals and corporate reflecting in ~28% increase in test volumes during FY2018. VLPL also has significant capital expenditure plans outlined for FY2019 including opening of three collection centres and introduction of new diagnostic tests. Revenue from the above is expected to aid revenues over the near to medium-term. Improvement in capital structure and coverage indicators in FY2018: Due to equity infusion and scheduled repayment of term- loans, VLPL's capital structure improved to 1.64 times as on March 31, 2018 from 4.09 times as on March 31, 2017. This, coupled with increase in absolute operating profits has resulted in improved coverage indicators. Extensive experience of the management in the health-care industry: The diagnostic centre benefits from the strong experience of its management, comprising 4 full-time doctors and 14 consultants at present. The promoters have recently appointed several experience doctors, who also work at other reputed hospitals in Bangalore. Additionally, with most of the doctors/ consultants also being the key shareholders in the company, the risk of attrition at the top level remains low. Comprehensive range of diagnostic tests along with sound infrastructure facility with advanced equipment's: VLPL is involved in the business of providing comprehensive range of diagnostic services spanning across radiology & imaging and conventional & specialist lab services through its diagnostic centre at HBR layout, Bangalore. It has invested in advanced medical equipment to ensure efficiency in speed and quality of reporting. It has also received ISO and CMC Vellore certifications in FY2018 which reflects favorably on the quality of services offered. It has recently introduced fetal medicine scan under its specialist lab services and specialty clinics of neurology, cardiology and diabetics. It is also in the process of adding nuclear medicine imaging procedures in FY2019. Credit challenges Small scale of operations and limited geographical presence, track record and brand recall as on date: VLPL has small scale of operations, as it is still in its early stages of business lifecycle. Although it plans to open three new collection centres in Bangalore in FY2019, their support to growth in revenues and profitability remains to be seen. Substantial debt-servicing obligations in the near to medium term, which is likely to keep its cash flows under pressure: VLPL has substantial repayment obligations vis-a-vis its cash accruals, in the near to medium term which would continue to keep its liquidity position under pressure going forward. Significant capital expenditure plans to be implemented in the current fiscal would also exert pressure on liquidity. Intense competition due to fragmented nature of the diagnostics industry: In the absence of stringent regulations and low entry barriers, the Indian diagnostics industry has had a predominant presence of unorganised players, which increases competitive pressure. Further, diagnostic centres have to constantly upgrade technology to stay ahead of competition, which involves significant investment in medical equipment. Incorporated in December 2014, Vaishnavi Lifecare Pvt. Ltd. (VLPL) runs a diagnostic centre under the brand name, Image Diagnostics at Bangalore, Karnataka. VLPL is involved in the business of providing comprehensive range of diagnostic services spanning across radiology & imaging and conventional & specialist lab services. It started its commercial operations in October 2015. It operates from a lease cum rented building consisting of 5 floors (including basement) of 17,800 total sqft area in HBR layout in North Bangalore. In FY2018, VLPL reported a profit before tax of INR0.19 crore on an operating income of INR7.22 crore compared to a profit before tax of INR0.06 crore on an operating income of INR6.42 crore in the previous year. VICEROY BANGALORE: CRISIL Maintains D Rating in Not Cooperating --------------------------------------------------------------- CRISIL has been consistently following up with Viceroy Bangalore Hotels Private Limited (VBHPL) for obtaining information through letters and emails dated December 31, 2017 and May 31, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 206 CRISIL D (ISSUER NOT COOPERATING) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VBHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VBHPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB Rating category or lower'. Based on the last available information, the rating on bank facility of VBHPL continues to be 'CRISIL D Issuer not cooperating' VBHPL, incorporated in 2010, is setting up a five-star hotel in Bengaluru (Karnataka). The company has a tie-up with Marriott International for managing operations of the hotel, which will operate under the Renaissance brand and is expected to commence operations by September 2015. Viceroy Hotels Ltd holds 40 per cent stake in VBHPL, and JP Morgan Mauritius India Pvt Ltd holds the balance 60 per cent. VIR ELECTRO: ICRA Maintains B- Rating in Not Cooperating -------------------------------------------------------- ICRA has maintained Vir Electro Engineering Private Limited bank facility rating in the non-cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash 6.92 [ICRA]B-(Stable) ISSUER NOT Credit COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' Category Fund based-Term 12.35 [ICRA]B-(Stable) ISSUER NOT Loan COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' Category Fund based- 4.73 [ICRA]B-(Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' Category Rationale The rating for the INR24.00 crore bank facilities of Vir Electro Engineering Private Limited continues to remain in the 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B- (Stable) ISSUER NOT COOPERATING". ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. ========= J A P A N ========= TOSHIBA CORP: KEPCO Loses Preferred Bidder Status for NuGen ----------------------------------------------------------- Reuters reports that South Korea's Korea Electric Power Corp has lost its preferred bidder status to buy Toshiba Corp's NuGen nuclear project in Britain as Toshiba looks at other alternatives, the Japanese company said on July 31. Following the Westinghouse bankruptcy, NuGen joint venture partner Engie pulled out of the project, which has been estimated to cost between $15 and $20 billion (ú11.4 billion and ú15.2 billion), leaving the Japanese firm searching for new investors, Reuters says. According to Reuters, KEPCO was chosen as preferred bidder last year but delays in concluding the deal have led to a review of operations at NuGen and of the roles of its 60 direct employees plus around 40 contractors. While KEPCO is no longer the preferred bidder, Toshiba said it remained in the frame as a possible buyer, Reuters relays. "Toshiba continues to consider additional options including the sale of its shares in NuGen to KEPCO, and we are carefully monitoring the situation, in consultation with stakeholders including the UK government," a spokesperson for Toshiba said in an email to Reuters. Reuters relates that South Korea's energy ministry said Toshiba notified it of the withdrawal of preferred bidder status on July 25 so it has opportunities for negotiation with other companies. However, Toshiba said it understands that an additional review is needed for a new business model and will keep talking to KEPCO as a first priority, the ministry said in a statement, Reuters relays. The ministry added that it, British government officials and KEPCO met in London and they agreed to carry out a joint feasibility study on the project, relays Reuters. Once the study is completed, KEPCO will consult with the South Korean government over the possibility of it taking part in the project, the ministry, as cited by Reuters, said. Reuters says Britain needs to invest in new capacity to replace ageing coal and nuclear reactors that are due to close in the 2020s, but large new plants have struggled to get off the ground due to high costs and weak electricity prices. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on June 20, 2018, Moody's Japan K.K. upgraded Toshiba Corporation's corporate family rating and senior unsecured debt rating to B1 from Caa1, and its subordinated debt rating to B3 from Ca. The rating outlook is stable. At the same time, Moody's has affirmed Toshiba's commercial paper rating of Not Prime. This rating action concludes the review for upgrade initiated on May 18, 2018. =============== M A L A Y S I A =============== 1MDB: Malaysia Suspects Chinese Cash Paid Fund's Debt ----------------------------------------------------- Tom Wright and Bradley Hope at The Wall Street Journal report that officials in Malaysia are investigating whether the government of former Prime Minister Najib Razak used funds from a China-backed infrastructure program to help pay debts owed by the state investment fund at the center of one of the world's biggest graft probes. According to the Journal, Prime Minister Mahathir Mohamad in July froze over $20 billion in Malaysian infrastructure projects that are part of China's One Belt One Road initiative, saying the contract values appeared to be inflated, in what he called a sign of possible corruption. Now, Mr. Mahathir's government suspects cash intended for the projects was diverted through offshore shell companies and used to pay nearly $700 million of debt owed by 1Malaysia Development Bhd., or 1MDB, according to two government officials involved in reviewing the projects, the Journal relays. Malaysians associated with the Najib government, working with representatives of Chinese companies, appear to have arranged the diversion of funds, the officials, as cited by the Journal, said. "Chinese companies may be involved in round tripping of major infrastructure projects in Malaysia that siphons off funds from these projects to help 1MDB," Malaysia's new Finance Minister Lim Guan Eng told The Wall Street Journal. China's foreign ministry didn't respond to a request for comment, the Journal notes. The Journal says Mr. Mahathir took office in May after pledging to voters to clean up the government, and has since moved quickly to restart investigations into what went on at 1MDB under his predecessor. Mr. Najib has denied any wrongdoing by himself or 1MDB, and an investigation by his attorney general cleared him, the Journal relates. Malaysia, which is on the hook to repay billions of dollars to Chinese banks that financed the projects, is demanding that Beijing agree to restructure the terms, the two officials said, the Journal relays. On July 31, Chinese Foreign Minister Wang Yi visited Kuala Lumpur, Malaysia's capital, the latest in a diplomatic flurry aimed at working out a compromise, one of the officials told the Journal. In mid-July, Daim Zainuddin, an ally of Mr. Mahathir who is leading investigations into the matter, laid out Malaysia's concerns about the loans in a meeting with China's Premier Li Keqiang in Beijing, according to a Malaysian official who was present, the Journal recalls. Scores of Chinese officials descended on Kuala Lumpur last week, and Mr. Mahathir is scheduled to meet President Xi Jinping in Beijing in August, the Journal states. On July 31, China Foreign Ministry spokesman Geng Shuang, in a regular press conference, called Malaysia an important partner, and didn't elaborate, the Journal says. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. The TCR-AP, citing The Wall Street Journal, reported on April 27, 2016, that the company defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). Asian Nikkei Review reported in June 2016 that Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund. ==================== N E W Z E A L A N D ==================== EBERT CONSTRUCTION: Goes Into Receivership with NZ$40MM Debt ------------------------------------------------------------ Anne Gibson at NZ Herald reports that Ebert Construction has gone into receivership with debts of around NZ$40 million, and the future of its 95 staff is in jeopardy with wages being paid day- to-day. The firm's 15 building contracts - as well as work and payment of dozens of subcontractors - also now hangs in the balance, the report says. NZ Herald relates that John Fisk, one of three PwC receivers of the business with Auckland and Wellington offices, said: "We think the shortfall will be about NZ$40 million." That is the amount of money Ebert could owe to its many creditors, Mr. Fisk said, but a precise figure was not yet available and that was only an initial estimate. Creditors would, however, be left out of pocket, he said, NZ Herald relays. "There will certainly be a shortfall but the extent of it, we don't know yet. There is an asset-owing company but that's not part of the receivership," the report quotes Mr. Fisk as saying. "Ninety-five staff were employed. They were all paid up until yesterday and we have given them an undertaking for each day they're' available, they're paid," Fisk said. However what future the staff have remains uncertain. "That's what we're trying to determine," Mr. Fisk said. "We have suspended all work while we are dealing with each contract. We're talking to the principals [mainly developers or clients]. We want to understand the financial position of each contract. It may be that they have to get other contractors. It may be we can finish some but until we have spoken to all the principals, we don't know what the outcome will be." According to the report, Mr. Fisk said Ebert's 15 contracts included a new NZ$57 million acute mental health unit for Middlemore Hospital, Union Green apartments in Auckland's CBD, Library Lane apartments at Albany in a project which was almost finished, a Synlait plant at Dunsandel in Canterbury, a Synlait job at Pokeno south of Auckland, an air-drying factory at Gore, the new Indian High Commission in Wellington, a contract for Premier Beehive at Carterton and a new fire station in Upper Hutt. "The board told us they had some unprofitable contracts in the Auckland region and they were aware of them but it was just last week they became fully aware of the problems," Mr. Fisk, as cited by NZ Herald, said. "There are funds in a retention trust account under the new act and we will need to work through that with the lawyers, but it's over NZ$3.5 million. That's money to pay creditors if they are entitled to it," he said. Mr. Fisk confirmed Nigel Boyd Foster of Karori, Kelvin Eric Hale of Khandallah and Lawrence Michael Phillips of Wanaka are Ebert Construction directors. Shareholdings are split eight ways. The receivers' first report is due to be issued two months from the date of the receivership, which was July 31, NZ Herald notes. But Mr. Fisk said new information would be provided on the PwC website under the Ebert link, NZ Herald adds. ================= S I N G A P O R E ================= JASON HOLDINGS: Posts $121,000 Net Loss for Year Ended Dec. 31 -------------------------------------------------------------- The Strait Times reports that Jason Holdings on July 31 posted a smaller net loss for the fiscal 2017. Net loss for its full-year ended Dec 31, 2017 stood at $121,000, compared to a restated net loss of $4.92 million, the report discloses. According to the Strait Times, the year-ago period included a $3.17 million loss on deconsolidation of subsidiary. The restated numbers reflect the reclassification from revaluation reserve, given the deconsolidation of subsidiary, that is in accumulated losses instead of through other comprehensive income, the report says. The Strait Times relates that the fiscal 2016 figures do not consolidate the financial statements of its wholly owned subsidiary, Jason Parquet Specialist (JPS), from Jan. 1, 2016 to June 10, 2016. According to the report, JPS was being wound up on June 10, 2016, and the board viewed that it was not possible to consolidate the financial statements of JPS because, among other things, the company did not have complete financial records of JPS. This comes as the firm's chief executive officer Jason Sim Chon Ang was this month charged in the State Courts for allegedly cheating banks of over $5 million over four years, The Strait Times notes. Jason Holdings Limited (SGX:513) operates through segments, Projects and Distribution. The Company is engaged in the supply and installation of timber flooring to its Projects customers, which consists of main contractors and retail customers. The Company is also involved in the sale of timber products and flooring accessories to its Distribution customers. Jason Parquet Specialist (Singapore) Pte Ltd (JPS) is the subsidiary of 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 ***