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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
Friday, November 2, 2018, Vol. 21, No. 218
Headlines
A U S T R A L I A
COLORADO CARAVANS: First Creditors' Meeting Set for Nov. 12
K & FAMILY: Clifton Hall Appointed as Liquidator
MAJID PTY: First Creditors' Meeting Set for Nov. 12
MT. HIRA: Second Creditors' Meeting Set for Nov. 8
OVERSTAR HOLDINGS: First Creditors' Meeting Set for Nov. 8
P & S CONCEPTS: Second Creditors' Meeting Set for Nov. 12
RAPID PLASTER: First Creditors' Meeting Set for Nov. 12
SPORTELUXE PTY: Second Creditors' Meeting Set for Nov. 12
C H I N A
HNA GROUP: Looks to Sell Prized Regional Carrier Lucky Air
I N D I A
ARORA RICE: CRISIL Raises Rating on INR16cr Cash Loan to B+
GANESH GREENZ: CRISIL Assigns B Rating to INR25cr Proposed Loan
HILLTOP CONCRETE: CARE Migrates D Rating to Not Cooperating
INFRASTRUCTURE LEASING: India Government Mulls Selling Lender
INFUTEC HEALTHCARE: CARE Reaffirms D Rating on INR56.28cr Loan
ISHWAR GINNING: CARE Migrates D Rating to Not Cooperating
ISHWAR OIL: CARE Migrates D Rating to Not Cooperating Category
KEVIN METPACK: CRISIL Maintains B Rating in Not Cooperating
KILBURN CHEMICALS: CARE Lowers Rating on INR206cr LT Loan to D
LASA LABORATORY: CRISIL Maintains B Rating in Not Cooperating
MAHALAXMI TRANSPORT: CRISIL Maintains B Rating in Not Cooperating
MANGALATHU ENTERPRISES: CRISIL Keeps B Rating in Not Cooperating
MARIGOLD CONSTRUCTIONS: CRISIL Keeps D Rating in Not Cooperating
MATIX FERTILIZERS: CARE Migrates D Rating from Not Cooperating
MEDIPLUS INDIA: CRISIL Maintains B Rating in Not Cooperating
MULTIDIMENSION WARANGAL: CRISIL Retains B+ Rating in Not Coop.
N. A. SHELAR: CRISIL Maintains C Rating in Not Cooperating
OM SHAKTHI: CRISIL Maintains D Rating in Not Cooperating Category
PEREGRINE PHOSPHATE: CRISIL Maintains B Rating in Not Cooperating
RAVI TEJA: CARE Lowers Rating on INR4.82cr LT Loan to D
RAWAT ASSOCIATES: CRISIL Assigns B+ Rating to INR25cr Loan
SHAPE ENGINEERING: CRISIL Maintains B Rating in Not Cooperating
SHARVI AGRO: CRISIL Maintains 'B+' Rating in Not Cooperating
SHREE JAGDAMBA: CRISIL Moves B Rating from Not Cooperating
SHRI BALAJI: CRISIL Assigns 'B' Rating to INR8cr Term Loan
SREE VINAYAGA: CRISIL Maintains B+ Rating in Not Cooperating
SRI PADMAVATHI: CARE Assigns B+ Rating to INR8cr LT Loan
TIJIYA ENGINEERING: CRISIL Maintains B Rating in Not Cooperating
TMT STEELS: CARE Migrates D Rating to Not Cooperating Category
VIRTUE MARKETING: CARE Migrates D Rating to Not Cooperating
VIVIMED LABS: CARE Lowers Rating on INR266.93cr Loan to D
WALMARK MEDITECH: CARE Lowers Rating on INR15.47cr LT Loan to D
J A P A N
MITSUBISHI HEAVY: to Give JPY220B to Aid Struggling Aircraft Unit
M A L A Y S I A
PETROL ONE: Auditor Issues Qualified Opinion Over FY18 Accounts
S I N G A P O R E
HYFLUX LTD: To Seek Four-Month Extension of Debt Moratorium
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A U S T R A L I A
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COLORADO CARAVANS: First Creditors' Meeting Set for Nov. 12
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Colorado
Caravans Pty Ltd will be held at the offices of SV Partners
Insolvency (VIC) Pty Ltd, Level 17, 200 Queen Street, in
Melbourne, Victoria, on Nov. 12, 2018, at 3:00 p.m.
Michael Carrafa and Richard John Cauchi of SV Partners were
appointed as administrators of Colorado Caravans on Oct. 30,
2018.
K & FAMILY: Clifton Hall Appointed as Liquidator
------------------------------------------------
Timothy Clifton of Clifton Hall was appointed Liquidator of
K & Family Farm Fresh Produce Pty Ltd, formerly trading as KPC
Fruit & Veg Market, on Oct. 24, 2018, by Order of the Federal
Court of Australia.
MAJID PTY: First Creditors' Meeting Set for Nov. 12
---------------------------------------------------
A first meeting of the creditors in the proceedings of Majid Pty
Ltd, trading as Lefty's Old Time Music Hall, will be held at
Level 12, 127 Creek Street, in Brisbane, Queensland, on
Nov. 12, 2018, at 10:00 AM
Mark William Pearce and Michael Dullaway of Pearce & Heers were
appointed as administrators of Majid Pty on Oct. 31, 2018.
MT. HIRA: Second Creditors' Meeting Set for Nov. 8
--------------------------------------------------
A second meeting of creditors in the proceedings of Mt. Hira
Investments Pty Ltd has been set for Nov. 8, 2018, at 10:00 a.m.
at Level 5, 34 Queen 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 Nov. 7, 2018, at 5:00 p.m.
Trajan John Kukulovski of Chan & Naylor was appointed as
administrator of Mt. Hira on Oct. 3, 2018.
OVERSTAR HOLDINGS: First Creditors' Meeting Set for Nov. 8
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Overstar
Holdings Pty Ltd, trading as Muzz Buzz Riverton, will be held at
Level 4, 15 Ogilvie Road, in Mount Pleasant, WA, on Nov. 8,
2018, at 10:30 a.m.
Simon Cathro & Mervyn Kitay of Worrells was appointed as
administrator of Overstar Holdings on Oct. 29, 2018.
P & S CONCEPTS: Second Creditors' Meeting Set for Nov. 12
---------------------------------------------------------
A second meeting of creditors in the proceedings of P & S
Concepts Pty Ltd has been set for Nov. 12, 2018, at 3:00 p.m. at
the offices of Worrells Solvency & Forensic Accountants, Level
15, 114 William 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 Nov. 9, 2018, at 5:00 p.m.
Matthew Kucianski and Con Kokkinos of Worrells Solvency were
appointed as administrators of P & S Concepts on Oct. 5, 2018.
RAPID PLASTER: First Creditors' Meeting Set for Nov. 12
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Rapid
Plaster Qld Pty Ltd will be held at the offices of McLeod &
Partners, Level 9, 300 Adelaide Street, in Brisbane, Queensland,
on Nov. 12, 2018, at 10:00 a.m.
Jonathan McLeod and Bill Karageozis of McLeod & Partners were
appointed as administrators of Rapid Plaster on Oct. 31, 2018.
SPORTELUXE PTY: Second Creditors' Meeting Set for Nov. 12
---------------------------------------------------------
A second meeting of creditors in the proceedings of Sporteluxe
Pty Ltd and Sporteluxe Group Pty Ltd has been set for Nov. 12,
2018, at 10:30 a.m. at Level 7, 616 St Kilda Road, 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 Nov. 9, 2018, at 4:00 p.m.
Gideon Isaac Rathner and Matthew Sweeny of Lowe Lippmann were
appointed as administrators of Sporteluxe Pty on Oct. 2, 2018.
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C H I N A
=========
HNA GROUP: Looks to Sell Prized Regional Carrier Lucky Air
----------------------------------------------------------
Archie Zhang and Lucy Hornby at The Financial Times report that
HNA Group is looking to sell one of its prized regional airlines
to a state-owned competitor, as debt woes threaten the core
operations of the indebted airline-to-finance conglomerate.
According to the FT, the sale would mark the first formal
divestment of a core domestic aviation business, a step HNA
executives had vowed the group would not take but highlights the
challenge of handling debts of at least $78 billion accumulated
during its rapid expansion.
The FT relates that the proposed divestment of a 60 per cent
stake in Lucky Air, a regional carrier, to Shanghai-based China
Eastern, the country's second-largest airline, comes as HNA
continues to shed assets. It plans to divest the remaining
40 per cent of Lucky Air to Yunnan Sasac, Yunnan's state-owned
asset regulator, according to former owners of the carrier who
oppose the sale, the FT relays.
HNA has been forced to change approach over the past two years
after a $40 billion global buying spree that made it China's most
acquisitive conglomerate, the FT notes. Its official debt --
which does not include its high-interest borrowing through peer-
to-peer platforms -- stood at CNY542 billion ($78 billion) at the
end of June. It has sold an estimated $18 billion worth of assets
this year.
No price tag was given for the proposed sale of Lucky Air but the
carrier is heavily loaded with debt, the FT says. It has CNY3
billion in outstanding bonds, half of which mature in the next
six months, and had drawn down CNY2.9 billion of its CNY4.4
billion in credit lines as of March, the last month for which
figures are available. Its registered capital is CNY3.5 billion.
According to the FT, HNA executives have said they intend to sell
property and other non-core assets but hold on to core aviation
and tourism businesses. However, the group has already moved to
divest some aviation assets, as defaults on payments due to
retail investors on peer-to-peer financing platforms since July
have heightened the sense of urgency.
It transferred the revenues from key air routes to a trust
company in Tianjin and is in talks to sell Swissport, an air
services company.
The FT says HNA has declined to disclose the extent of its P2P
exposure but analysis of its P2P platforms suggest it has raised
billions of dollars in non-bank funding in recent years, in
addition to its publicly reported debt load.
The proposed sale of Lucky Air could be held up by a long-running
dispute with HNA's jilted former partners over the conglomerate's
original acquisition of the carrier, adds the FT.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 17, 2018, the Financial Times said reports that the Chinese
aviation-to-finance conglomerate defaulted on a CNY300 million
(US$44 million) loan raised through a trust company, the lender
said on Sept. 13 as it sought to freeze HNA assets.
The FT said the announcement by Hunan Trust is a sign that HNA's
liquidity woes are beginning to have a broader impact outside
China's formal banking sector. According to the FT, the company
is already under strict supervision by a group of bank creditors,
led by China Development Bank, following a liquidity crunch in
the final quarter of last year. The default came despite an
estimated $18 billion in asset sales by HNA this year that have
done little to address its ability to meet its domestic debts,
the FT noted.
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I N D I A
=========
ARORA RICE: CRISIL Raises Rating on INR16cr Cash Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities
of Arora Rice Mills (ARM) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable' and reassigned its 'CRISIL A4' rating to the short term
bank facility.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
Packing Credit 1.5 CRISIL A4 (Reassigned)
The upgrade reflects improvement in the business risk profile,
backed by steady growth in revenue and stable operating margin.
Operating income has increased to INR49 cr with CAGR of 3.4% for
past three years with operating profitability of in the range of
4.0-5.0%.The upgrade also factors in improvement in liquidity, on
account of enhancement in working capital limits.
The rating also factors in small scale of operations in the
intensely competitive industry, large working capital requirement
and below average financial risk profile. These weaknesses are
partially offset by the extensive industry experience of the
partners.
Analytical Approach
Unsecured loans of INR2.5 Cr is treated as NDNE as they are
expected to remain in the business over the medium term and has
lower interest rate.
Key Rating Drivers & Detailed Description
Weaknesses:
*Small scale of operations in the intensely competitive:
Revenue of INR49.03 crore in fiscal 2018 reflects the firm's
modest scale of operation in highly fragmented industry with
intense competition among a few large and branded players and
several unorganized, regional players.
* Large working capital requirement: Sizeable inventory makes
operations in the rice processing industry working capital
intensive. The firm had inventory of 195 days and receivables of
22 days leading to gross current assets of 207 days, as on March
31, 2018.
* Below-average financial risk profile: Financial risk profile is
constrained by weak debt protection metrics, with interest
coverage ratio at 1.41 times nd net cash accrual to adjusted debt
ratio at 0.03 time in fiscal 2018. Networth was modest at INR3.08
crore and TOLANW ratio was high at 7.71 times as on March 31,
2018, because of low accretion to reserve and considerable
working capital debt.
Strengths
* Extensive industry experience of partners: The partners'
experience of a decade, healthy relationships with various
stakeholders, and strong procurement network will continue to
benefit the firm over the medium term. The firm procures paddy
from various mandis in Punjab, Haryana, and Madhya Pradesh.
Outlook: Stable
CRISIL believes ARM will continue to benefit from the partners'
extensive industry experience. The outlook may be revised to
'Positive' if substantial cash accrual or significant capital
infusion by the partners leads to a better capital structure, or
if working capital management improves. The outlook may be
revised to 'Negative' if capital structure and liquidity weaken
significantly on account of larger-than-expected working capital
requirement, or sizeable, debt-funded capex.
ARM was established as a partnership firm in 1998 in Jalalabad
(Punjab), and was acquired by Mr Ashok Aneja and his relatives in
fiscal 2004. The firm processes both basmati and non-basmati rice
and sells mainly to bulk exporters or exports directly to
counties in the Middle East.
GANESH GREENZ: CRISIL Assigns B Rating to INR25cr Proposed Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank loan facility of Ganesh Greenz (GG).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund-
Based Bank Limits 25 CRISIL B/Stable (Assigned)
The rating reflects modest scale of operations and working
capital-intensive operations. These weaknesses are partially
offset by the partners' extensive industry experience and
moderate financial risk profile.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: Gross sales were modest at INR3
crore in fiscal 2018 and The firm is expected to generate revenue
of INR47crore in fiscal 2019. However, the revenue remains
vulnerable to tender based operations.
* Working capital-intensive operations: Operations of the firm
are working capital intensive with gross current assets (GCA) of
304 days reported as on March 31, 2018 primarily on account of
high debtors and inventory of 147 days and 18 days, respectively,
in fiscal 2018.
Strength
* Extensive industry experience of the partners: Benefits from
partners' extensive experience of over two decades in the civil
contract work has helped them to complete existing projects on
time. Furthermore, group concerns have extended need-based
working capital support as reflected in creditors of INR2 crore
as on March 31, 2018.
* Moderate financial risk profile: Absence of external debt as on
March 31, 2018, supports the financial risk profile, however, it
is constrained by modest networth of INR17 lakh as on March 31,
2018.
Outlook: Stable
CRISIL believes GG will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' if there is substantial increase in revenue and
profitability along with prudent working capital management,
strengthens the financial risk profile. The outlook may be
revised to 'Negative' if stretched working capital cycle, or any
large, debt-funded capex, weakens the financial risk profile.
GG was set up by Mr Rajinder S. Jadhav and Mr Shrikant in 2016 as
a partnership firm. The firm is engaged in government park
development project for supply and installation of wide range of
outdoor gym and children playground equipment in Delhi.
HILLTOP CONCRETE: CARE Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Hilltop
Concrete Private Limited (HCPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HCPL to monitor the
ratings vide e-mail communications/letters dated September 12,
2018, October 8, 2018, October 10, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Hilltop Concrete Private Limited's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in August 21, 2017, the following were
the rating strengths and weaknesses.
Key Rating Weaknesses
Ongoing delay in debt servicing: HCPL has been irregular in
servicing its debt obligations owing to weak liquidity position
of the company.
Incorporated in 2012, Surat-based (Gujarat), HCPL is promoted by
Mr. Vinay Chaudary, Mr. Kirtee Chaudary, Mr. Priyank Chaudary and
Mr. Gaurav Chaudary. In the Month of March, 2016 HCPL has
completed debt funded capital expenditure to set up plant for
manufacturing of AAC Block at Kapadvanj (Dist: Kheda, Gujarat)
with an installed capacity of 285,000 cubic meters per annum.
INFRASTRUCTURE LEASING: India Government Mulls Selling Lender
-------------------------------------------------------------
Bloomberg News reports that India is examining options including
an outright sale of Infrastructure Leasing & Financial Services
Ltd., a person with knowledge of the matter said, as the
government tries to stem defaults at the lender with $12.6
billion of debt.
Bloomberg relates that a plan that was to be presented to a
bankruptcy court on Oct. 31 by the state-appointed board of the
lender includes selling the entire stake to a financially strong
investor and ensure business continuity, the person said, asking
not to be identified as the matter is private. Other options
include splitting businesses according to verticals and disposing
them off to several buyers or injecting liquidity at group level
to avoid an outright sale.
According to Bloomberg, the beleaguered financier hasn't stopped
missing payments even after the government sacked the lender's
board and pledged to stem defaults. Fixing the cash flow crisis
at the company is vital to revive confidence in India's credit
markets at a time when Asia's third-largest economy grapples with
rising oil prices and a plunging currency, Bloomberg says. The
Serious Fraud Investigation Office this month started an
investigation into IL&FS.
The plan finalized by the new board led by Asia's richest banker,
Uday Kotak will be put up before the National Company Law
Tribunal on Oct. 31, says Bloomberg. The court had approved the
government's move to take over the lender and accepted the plea
that the move was crucial to protect the financial markets.
The lender's borrowing from banks and financial institutions is
INR630 billion on a consolidated basis, according to the balance
sheet for the year ended March 2018, the official, as cited by
Bloomberg, said. Exposure of the banking sector to IL&FS is
pegged at around INR530 billion, about 16 percent of all lending
to non-banking finance companies.
While the matter is being heard in the court, the board could
look at selling assets, both core and non-core, for infusing
liquidity and ensuring timely loan repayments, the official said.
Bloomberg notes that the troubles at IL&FS had been intensifying
since July, when company founder Ravi Parthasarathy stepped down,
citing health reasons. Defaults from August within the group
rattled India's money markets, added to the pressure on corporate
bond yields and sparked a sell-off in the stock market.
The IL&FS Group is a bewilderingly complex conglomerate, with 348
direct and indirect subsidiaries. Its investors include Life
Insurance Corp., India's largest life insurer; State Bank of
India, its largest bank; and Housing Development Finance Corp,
its largest mortgage lender. Japan's Orix Corp. is the company's
second-largest shareholder.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS)
operates as an infrastructure development and finance company in
India. It focuses on the development and commercialization of
infrastructure projects, and creation of value added financial
services. The company operates in Financial Services,
Infrastructure Services, and Others segments. Its Financial
Services segment engages in the commercialization of
infrastructure; investment banking, including corporate finance,
advisory, capital market, and other financial services; and
securities trading, venture capital, and trusteeship operations.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 3, 2018, the Indian Express said that the government on
Oct. 1 stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a
series of its debt payments over the last one month. This was
said to be an attempt to restore the confidence of financial
markets in the credibility and solvency of the infrastructure
financing and development group.
INFUTEC HEALTHCARE: CARE Reaffirms D Rating on INR56.28cr Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Infutec Healthcare Limited (IHL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 56.28 CARE D Reaffirmed
Long-term/Short-
Term Bank
Facilities 14.50 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of IHL continue to
factor in the on-going delays in debt servicing obligation owing
to acute liquidity stress due to loss making operations, high
debt levels and working capital intensity.
Detailed description of the key rating drivers
Key Rating Weakness
Delay in servicing of debt obligation: IHL has delayed in
servicing debt obligations due to deterioration in the financial
profile of the company and liquidity indicators on account of
loss making operations of the company during last couple of
years, high debt levels and working capital intensive operations.
IHL (erstwhile Goa Formulations Ltd) was a wholly-owned
subsidiary of Indore-based Parental Drugs India Limited (PDIL).
IHL is engaged in manufacturing of pharmaceutical products mainly
into intravenous fluids at its plant located at hoshiarpur,
Punjab. As on June 10, 2018, one of investor i.e. Mahaganpati
Investment Private Limited converts its preference share to
equity share leads to dilution of shareholding of PDIL.
ISHWAR GINNING: CARE Migrates D Rating to Not Cooperating
---------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Ishwar
Ginning Private Limited (IGPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed rationale
CARE has been seeking information from IGPL to monitor the
ratings vide e-mail communications/letters dated July 9, 2018,
July 27, 2018, August 20, 2018, September 10, 2018, October 4,
2018, October 10, 2018, October 15, 2018, October 16, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Ishwar
Ginning Private Limited's bank facilities and instruments will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating takes into account delays in debt repayment owing to
weak liquidity position.
Detailed description of the key rating drivers
Delays in Debt servicing
The account has become NPA due to weak liquidity position.
Incorporated in 2015, Rajkot (Gujarat) based, Ishwar Ginning
Private Limited (IGPL) is promoted by Mr Rameshbhai Gamdha and Mr
Ashokbhai Gamdha with an objective of manufacturing of cotton
bales and cotton seeds. Mr Rameshbhai Gamdha and Mr Ashokbhai
Gamdha are also partners in Ishwar Oil Industries and Ishwar Oil
Mill which are into manufacturing of cotton oil and cotton oil
cake.
ISHWAR OIL: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Ishwar
Oil Industries (IOI) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.53 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed rationale & Key Rating Drivers
CARE has been seeking information from IOI to monitor the ratings
vide e-mail communications/letters dated October 8, 2018,
October 9, 2018, October 10, 2018, October 15, 2018, October 16,
2018 and numerous phone calls. However, despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Ishwar Oil
Industries' bank facilities and instruments will now be denoted
as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating takes into account delays in debt repayment owing to
weak liquidity position.
Detailed description of the key rating drivers
Delays in Debt servicing
The account has become NPA due to weak liquidity position.
Rajkot (Gujarat) based Ishwar Oil Industries (IOI) was
established on 11th November 2013 by Mr.Rameshbhai Gamdha,
Mr.Jadavbhai Gamdha and Mr. Ketanbhai Gamdha. IOI is a
partnership firm engaged in manufacturing of cotton seed cake and
trading of all agricultural produce. However the commercial
operation commenced from November, 2014. The day-to-day
operations are managed by Mr. Rameshbhai Gamdha and he has
experience of more than a decade in this industry. The firm
procures cotton seeds from traders and cotton ginning units, and
undertakes processing on the same, while the finished products
are sold to oil refining companies and industrial users.
KEVIN METPACK: CRISIL Maintains B Rating in Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with Kevin Metpack
Private Limited (KMPL) for obtaining information through letters
and emails dated March 31, 2018 and September 28, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 41 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of 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, the ratings on bank
facilities of KC continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Founded in 2007 by Mr. Vikas Malu, KMPL set up a facility to
manufacture metallised cast polypropylene and polyethylene
terephthalate shrink film, and thermoforming grade polyester for
the packaging industry.
KILBURN CHEMICALS: CARE Lowers Rating on INR206cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kilburn Chemicals Limited (KCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 206.00 CARE D Revised from CARE BB+;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of KCL
takes into account the ongoing delays in debt servicing due to
delay in stabilisation of operations in the titanium dioxide
(TiO2) plant commissioned by the company in March 2018.
Detailed description of the key rating drivers
Key Rating weaknesses:
Ongoing delays in interest servicing: There are ongoing delays in
interest servicing by the company. The cash flow generation from
the TIO2 plant has been inadequate due to delay in stabilisation
of operations in the plant commissioned by the company in March
2018.
Delays in stabilization of plant: The company announced
commencement of commercial operations on March 22, 2018. However,
the plant is facing issues in stabilisation in some of the
processes and the production cycle is not smooth. Hence,
negligible quantity was produced in Q1FY19 and Q2FY19 due to
which the company incurred loss.
KCL was incorporated in August 1990 as Southern Tioxide Ltd. It
was taken over by the current promoter, Mr. Sandeep Kumar Jalan
(MD of KCL) in 1992. The company set up a TiO2 (Anatase grade)
plant in Tuticorin, Tamil Nadu with an installed capacity of 10
tonnes/day (TPD) which commenced operation in the year 1994. The
plant was sold in October 2011 due to operational issues.
Meanwhile, in March 2011, KCL had been allotted land in Dahej,
Gujarat for setting up a second TiO2 manufacturing facility. KCL
has set up a new facility for manufacturing rutile grade TiO2
through sulphate route with an installed capacity of 16,500 TPA
(with 49,500 TPA capacity of Ferrous Sulphate Heptahydrate (FSH)
as byproduct) in Gujarat in Petroleum, Chemicals and
Petrochemicals Investment Region (PCPIR). The facility commenced
operation in March 2018 as against initial estimate of October
2017.
LASA LABORATORY: CRISIL Maintains B Rating in Not Cooperating
-------------------------------------------------------------
CRISIL has been consistently following up with Lasa Laboratory
Private Limited (LLPL) for obtaining information through letters
and emails dated March 31, 2018 and September 28, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 8 CRISIL A4 (ISSUER NOT
COOPERATING)
Term Loan 19 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LLPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LLPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of LLPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
LLPL, part of the Omkar group, was founded in 1998. The company
manufactures pharmaceutical products. It offers products in the
areas of anthelmentic and veterinary active pharmaceutical
ingredients. In April 2012, OSCL acquired 100 per cent stake in
LLPL for a consideration of Rs.60 million.
OSCL, set up in 1983, manufactures speciality chemicals, organic
and inorganic chemicals, and inorganic intermediates such as
iodine, selenium, molybdenum, and their derivatives. The
company's managing director, Mr. Pravin Herlekar, has nearly 35
years of experience in the speciality chemicals business. It
manufactures a wide range of products for an established
clientele, including Dr. Reddy's Laboratories Ltd, Cipla Ltd,
Biocon Ltd (rated 'CRISIL AA+/Stable/CRISIL A1+'), Asahi India
Glass Ltd, Jubilant Organosys Ltd, Cadila Healthcare Ltd (rated
'CRISIL AA+/Stable/CRISIL A1+'), and Lupin Ltd.
MAHALAXMI TRANSPORT: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Mahalaxmi
Transport (MT) for obtaining information through letters and
emails dated March 31, 2018 and September 28, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Rupee Term Loan 16 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MT is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the rating on bank
facilities of MT continues to be 'CRISIL B/Stable Issuer not
cooperating'.
MT set up in 2006, and MAPL, incorporated in 1997, is promoted by
Baramati based, Mr. Sadashiv Satav and his sons, Mr. Nitin Satav
and Mr. Sachin Satav. The group is engaged in dealership of two
wheelers of Hero Motocorp Ltd dealership of passenger vehicles of
Maruti Suzuki India Ltd, transportation of vehicles for
automotive companies and providing buses on rent to Pune
Mahanagar Parivahan Mahamandal Limited (PMPML).
MANGALATHU ENTERPRISES: CRISIL Keeps B Rating in Not Cooperating
----------------------------------------------------------------
CRISIL has been consistently following up with Mangalathu
Enterprises (ME) for obtaining information through letters and
emails dated March 31, 2018 and September 28, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Export Packing 1.5 CRISIL A4 (ISSUER NOT
Credit COOPERATING)
Proposed Long Term 2.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ME, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ME is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ME continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Set up in 2004, ME processes raw cashew nuts. The firm's
operations are managed by the proprietor, Mr. R Sathyadevan.
MARIGOLD CONSTRUCTIONS: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL has been consistently following up with Marigold
Constructions (MC) for obtaining information through letters and
emails dated March 31, 2018 and September 28, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 9.84 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long 0.16 CRISIL D (ISSUER NOT
Term Bank Loan COOPERATING)
Facility
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MC continues to be 'CRISIL D Issuer not
cooperating'.
MC, set up by Mr. Bharat Prajapati and Mr. Bhavin Sheth in
Mumbai, is a real estate developer. It is developing Marigold
Exotic, a residential project with 30 units at Mulund in Mumbai.
MATIX FERTILIZERS: CARE Migrates D Rating from Not Cooperating
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Matix
Fertilizers and Chemicals Limited (MFCL) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/short 4,305.00 CARE D Revised from CARE D;
term Bank Issuer Not Cooperating
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of MFCL factors in
ongoing delays in debt for repayment of debt obligations
(interest as well as principal).
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays for repayment of debt obligation (interest as well
as principal).
Incorporated in July 2009, Matix Fertilizers and Chemicals
Limited (Matix) is setting up a Greenfield Ammonia (capacity:
0.73 mtpa) and Urea Plant (capacity: 1.27 mtpa) along with a
combined gas fired captive power plant, railway siding and other
utilities in Panagarh Industrial Park at Panagarh, West Bengal
(WB). Matix is promoted by Mr Yogendra S Kanodia and Mr Nishant
Kanodia of the Datamatics Group.
MEDIPLUS INDIA: CRISIL Maintains B Rating in Not Cooperating
------------------------------------------------------------
CRISIL has been consistently following up with Mediplus India
Limited (MIL) for obtaining information through letters and
emails dated March 31, 2018 and September 28, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.75 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 7.25 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 5.00 CRISIL A4 (ISSUER NOT
COOPERATING)
Term Loan .12 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MIL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MIL continues to be CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
MIL, set up by Mr Sundelal Goel and his family members in 1995,
manufactures and exports intra venous (IV) cannulae, medical
equipment, surgical equipment, and medical and surgical
disposables. It sells products under its Plusflon, Pluscan,
Pluscan Alpha, and Plusneo brands. The company has a capacity to
produce 4 lakh IV units per day at its facility in Bahadurgarh,
Haryana.
MULTIDIMENSION WARANGAL: CRISIL Retains B+ Rating in Not Coop.
--------------------------------------------------------------
CRISIL has been consistently following up with Multidimension
Warangal Multiplex Private Limited (MWMPL) for obtaining
information through letters and emails dated March 31, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 15 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MWMPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on MWMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MWMPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Incorporated in October 2011, MWMPL is currently setting up a
multiplex in Warangal (Telangana). The company is promoted by
Mr.Puskur Ram Mohan Rao and his associates.
N. A. SHELAR: CRISIL Maintains C Rating in Not Cooperating
----------------------------------------------------------
CRISIL has been consistently following up with N. A. Shelar and
Company (NAS) for obtaining information through letters and
emails dated March 31, 2018 and September 28, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 4 CRISIL C (ISSUER NOT
COOPERATING)
Proposed Long Term 1 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NAS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NAS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NAS continues to be 'CRISIL C Issuer not
cooperating'.
Established in the year 1983, as a proprietorship concern of Mr.
Narayan Shelar, NASC is a civil contractor primarily engaged in
construction of buildings (residential and commercial) in the
Mumbai region of Maharashtra.
OM SHAKTHI: CRISIL Maintains D Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL has been consistently following up with OM Shakthi Exports
(OM) for obtaining information through letters and emails dated
March 31, 2018 and September 28, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 5 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 OM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on OM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of OM continues to be 'CRISIL D Issuer not
cooperating'.
Set up in 2013, OM is a partnership firm of Mr. Gulhatty Shekhar
and Mr. Raghunath Babu. The firm is engaged in mining, processing
and exports of granite blocks, slabs and tiles.
PEREGRINE PHOSPHATE: CRISIL Maintains B Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL has been consistently following up with Peregrine
Phosphate Private Limited (PPPL) for obtaining information
through letters and emails dated March 31, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PPPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2013, PPPL is a Bengaluru-based company engaged
in trading of chemicals and fertilisers, pesticides and plant
nutritional and bio organic products. The operations are managed
by Mr. Rahul Nilkanth.
RAVI TEJA: CARE Lowers Rating on INR4.82cr LT Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ravi Teja Textiles, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 4.82 CARE D; Issuer not cooperating;
Facilities Based on best available
information. Revised from
CARE B; Issuer not cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Ravi Teja Textiles to
monitor the rating vide e-mail communications/letters dated
October 9, 2018, October 10, 2018, October 11, 2018 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
rating. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the
rating. The rating on 'Ravi Teja Textiles' bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).
The ratings have been revised on account of ongoing delays in
meeting its debt obligation.
Detailed description of the key rating drivers
Key rating Weaknesses
Delay in debt servicing: The firm has delays in servicing of debt
obligations owing to the stretched liquidity position of the
firm.
Key Rating Strengths
Experienced proprietor with established track record of the firm
RTT was established in 1990 by Mr. D. Sarveswara Rao who has more
than four decades of experience in retail cloth trading industry.
The firm has established track of more than two decades in the
industry and over the course of business, the proprietor has
established healthy relationship with key suppliers and customers
facilitating the smooth functioning of business.
Ravi Teja Textiles (RTT) was established as a proprietorship
concern by Mr. D. Sarveswara Rao in the year 1990. The firm is
engaged in the trading of sarees and ladies dress materials. The
firm has two showrooms, one located in Ongole while the other
located in Piduguralla, Andhra Pradesh. While the showroom in
Ongole has been operating since 1990, the new showroom in
Piduguralla was started during the end of FY14. In FY15, RTT had
a surplus of INR0.13 crore on a total operating income of
INR12.60 crore, as against PAT and TOI of INR0.12 crore and
INR8.46 crore, respectively, in FY14.
RAWAT ASSOCIATES: CRISIL Assigns B+ Rating to INR25cr Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' for the long term bank
facility of Rawat Associates (RA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Bank
Guarantee 25 CRISIL B+/Stable (Assigned)
Proposed Cash
Credit Limit 5 CRISIL B+/Stable (Assigned)
The rating reflects its modest scale of operations, increasing
working capital requirements and below average capital structure.
These weaknesses are partially offset by extensive experience of
partners in civil construction industry and its healthy order
book.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: RA's scale of operation has
remained modest in spite of more than decade of presence in civil
construction industry. In fiscal 2018, revenue has been
negligible due to no contracts executed. The segment is highly
fragmented and has numerous small-scale unorganised players
catering to local demand, which may restrict significant
improvement in scale of operations.
* Increasing working capital requirements: The gross current
assets have been in the range of 200-300 days in the past.
Healthy revenue growth expected over the medium term will lead to
high incremental working capital requirements, and increase in
dependence on bank limits.
* Below average financial risk profile: RA's financial risk
profile is below average with estimated networth of around Rs. 1
crore and high gearing, expected to be around 2.5 times in fiscal
2019, due to increase in working capital requirement.
Strength
* Extensive experience of partners: RA is promoted by Mr. Arjun
Rawat who has been in the civil construction industry over a
decade. This has helped RA to build a strong order book of around
Rs. 200 crores to be executed over the next 3 years.
Outlook: Stable
CRISIL believes RA will continue to benefit from its proprietor's
extensive industry experience. The outlook may be revised to
'Positive' if significantly higher revenues and profitability, or
better working capital management, leads to improvement in
financial risk profile. The outlook may be revised to 'Negative'
if lower-than-expected revenue or profitability, or larger
working capital cycle, weakens the financial risk profile,
especially liquidity.
RA, setup in 2001, is a partnership firm of Mr. Arjun Rawat and
his wife Mrs Poonam Rawat. The firm undertakes construction of
canals and irrigation projects in Andhra Pradesh.
SHAPE ENGINEERING: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Shape Engineering
Company Private Limited (SECPL) for obtaining information through
letters and emails dated March 31, 2018 and September 28,2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 10.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 1 CRISIL A4 (ISSUER NOT
COOPERATING)
Proposed Long Term 3.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SECPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on SECPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SECPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
SECPL, incorporated in 1984 in Haridwar, is promoted by Mr.
Sudhir Jain and his family members. It manufactures components of
turbines, generators, and heat exchangers. It has installed
capacity of 2400 tonne per annum.
SHARVI AGRO: CRISIL Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
CRISIL has been consistently following up with Sharvi Agro Mills
Private Limited (SRMPL) for obtaining information through letters
and emails dated March 31, 2018 and September 28, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SRMPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on SRMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SRMPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Incorporated in 2011, SRMPL mills and processes paddy into rice,
rice bran, broken rice, and husk. It has an installed paddy
milling capacity of 70000 metric tonnes per annum. Its rice mill
is located in Nagri, Ranchi. The promoter-director Mr. Praveen
Gupta, Mr. Praveen Kedia, and Mr. Shubham Gopalka manage the
operations.
SHREE JAGDAMBA: CRISIL Moves B Rating from Not Cooperating
----------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated its rating
on the long-term bank facility of Shree Jagdamba Cotton Ginning
and Pressing Factory (SJCGPF) to 'CRISIL B/Stable Issuer Not
Cooperating'. However, SJCGPF subsequently started sharing
information necessary for carrying out a comprehensive rating
review. Consequently, CRISIL is migrating the rating from 'CRISIL
B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COPERATING'*)
The rating reflects modest scale of SJCGPF's operations in the
intensely competitive cotton industry, exposure to fluctuations
in cotton prices, and an average financial risk profile. These
weaknesses are partially offset by the experience of the partners
and benefits derived from the advantageous plant location.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations amid intense competition: Intense
competition and limited product differentiation may continue to
constrain scalability, pricing power, and profitability. Revenue
was around INR63 crore in fiscal 2018.
* Exposure to fluctuations in cotton prices: Availability of
cotton depends on monsoon, and prices are further affected by
government interventions and fluctuations in global output.
Hence, the ability to manage volatility in cotton prices and
maintain profitability, will be a key rating sensitivity factor.
* Average financial risk profile: Capital structure remains weak,
with high gearing and total outside liabilities to tangible
networth ratio of 2.58 times and 3.04 times, respectively, as on
March 31, 2018; networth was modest at INR4.15 crore. Debt
protection metrics were average, with interest coverage and net
cash accrual to total debt ratios of 1.26 times and 0.02 time,
respectively, in fiscal 2018.
Strengths
* Experience of the partners: Benefits from the partners'
experience of over four decades, their strong understanding of
local market dynamics, and healthy relations with customers and
suppliers should continue to support the business.
* Locational advantage: The plant is at Handod, near Vadodara and
Kadi, Gujarat's cotton-growing belt. This enables easy access to
raw material and cuts down transportation cost.
Outlook: Stable
CRISIL believes SJCGPF will continue to benefit from the
experience of the partners. The outlook may be revised to
'Positive' if substantial increase in revenue and profitability
strengthens financial risk profile and liquidity. Conversely, the
outlook may be revised to 'Negative' if steep decline in cash
accrual, stretched working capital cycle, or any large, debt-
funded capital expenditure weakens financial risk profile and
liquidity.
SJCGPF was set up in the 1970s at Handod as a partnership between
Mr Mayurkumar Shah and family. The firm gins and presses cotton.
SHRI BALAJI: CRISIL Assigns 'B' Rating to INR8cr Term Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating on the long-term
bank facilities of Shri Balaji Hospital and Critical Care Centre
(SBHCCC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 8 CRISIL B/Stable (Assigned)
The rating reflects the extensive experience of promoters in the
healthcare industry and established market position. These rating
strengths have been partially offset by high geographical
concentration in revenue and exposure to intense competition and
project risk.
Key Rating Drivers & Detailed Description
Weaknesses
* High geographical concentration in revenue and exposure to
intense competition: SBHCCC is concentrated in the Jalgaon
(chalisgaon) region unlike the large healthcare chains that have
multiple hospitals in various locations, resulting in a wider
presence. The geographical concentration of SBHCCC restricts the
company's clientele and renders it vulnerable to the dynamics of
a single market and entry of any big player in the region.
Moreover, due to its geographical concentration, the company
faces increased local competition from private hospitals, and
also from government hospitals.
* Project Risk
SBHCCC is engaged in setting up a new hospital of around 100 beds
capacity with a total outlay of 12 cr. The hospital is expected
to start its construction from December 2018. The timely
completion of the hospital and offtake of the same will remain a
key ratings sensitivity factor.
Strengths
* Extensive experience of promoters in the healthcare industry
and established market position: SBHCCC's promoter has around
three decades of experience in the health care industry. The
panel further includes highly qualified and specialist doctors.
The hospital operates at 90 percent occupancy levels and is
likely to report steady growth in revenue over the medium term.
Outlook: Stable
CRISIL believes SBHCCC will continue to benefit over the medium
term from its established position and extensive experience of
promoter. The outlook may be revised to 'Positive' in case of
substantial and sustained improvement in revenue and
profitability margins, or if networth improves significantly due
to sizeable equity infusion. The outlook may be revised to
'Negative' if profitability margins decline sharply or capital
structure weakens significantly due to large, debt-funded capital
expenditure or stretch in working capital cycle.
Incorporated in 2014 and promoted and managed by Dr. Shailendra
Mahale, SBHCCC operates a hospital in the Jalgaon (chalisgaon)
region.
SREE VINAYAGA: CRISIL Maintains B+ Rating in Not Cooperating
------------------------------------------------------------
CRISIL has been consistently following up with Sree Vinayaga
Construction (SVC) for obtaining information through letters and
emails dated March 31, 2018 and September 28,2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SVC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SVC continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
SVC was established in May 2013 as a partnership firm by Mr.
Reghunathan, Mr. Gopikrishna, Mr. Murugan and Mr. Pandian. The
firm undertakes civil construction works, primarily for Tamil
Nadu Public Works Department.
SRI PADMAVATHI: CARE Assigns B+ Rating to INR8cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Padmavathi Rice Mill (SPRM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE B+; Stable (Assigned)
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SPRM are tempered
by the short track record, risk towards stabilization of
operations, seasonal nature of availability of paddy resulting in
working capital intensive nature of operations and constitution
of the entity as a partnership firm. However, the rating is
underpinned by the experience of the promoters for more than two
decades in rice mill industry, location advantage, financial
closure of the project being achieved and stable outlook of rice
industry.
Going forward, ability of the firm to stabilize the operations
and generate the revenue and profit levels as envisaged are key
rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Short track record of the firm: The firm was established in
June 2017. SPRM has completed its project in April 2018 and
started its commercial operations from May 2018. The level of
project execution and operations by the management of the firm is
yet to be seen.
Risk towards stabilization of operations: The firm has set up a
processing unit with a total cost of INR3.62 crore which was
funded by promoter's capital of INR1.62 crore and term loan of
INR2.00 crore. The firm has incurred the total cost and the
commercial production started from May 2018. Therefore, risk
exists towards stabilization of operations post initiation of
commercial operations of the unit. In 5MFY19 (Provisional), the
firm has achieved sales of INR11.20 crore.
Seasonal nature of availability of paddy resulting in working
capital intensive nature of operations: Paddy in India is
harvested mainly at the end of two major agricultural seasons
Kharif (June to September) and Rabi (November to April). The
millers have to stock enough paddy by the end of the each season
as the price and quality of paddy is better during the harvesting
season. During this time, the working capital requirements of the
rice millers are generally on the higher side. Majority of the
firm's funds are blocked in inventory and with customers.
Constitution of the entity as a partnership firm: Sri Padmavathi
Rice Mill, being a partnership firm, is exposed to inherent risk
of the partner's capital being withdrawn at time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of the partners. Moreover,
partnership firm business has restricted avenues to raise capital
which could prove a hindrance to its growth.
Key Rating Strengths
Experience of the partners for more than two decades in Rice Mill
Industry: Sri Padmavathi Rice Mill is promoted by Mr.P.Gururaj
and his other family members. The partners of the firm are well
qualified and have vast experience of more than two decades in
rice mill industry. The firm is likely to be benefited by its
qualified and experienced partners.
Location advantage: The rice milling unit of Sri Padmavathi Mill
is located at Karatagi, Koppal district, which is one of the top
paddy markets in Karnataka. The manufacturing unit is located
near the rice producing region, which ensures easy raw material
access and smooth supply of raw materials at competitive prices
and lower logistic expenditure.
Financial closure of the project has been achieved: The partners
of the firm have established a rice milling unit at Karatagi,
Koppal district with a total cost of INR3.62 crore which was
funded through bank term loan of INR2.00 crore and remaining
INR1.62 crore from partner's fund. Therefore, the financial
closure of the project has been achieved. In addition, the firm
has availed the working capital facility of INR6 crore in order
to support the business operations.
Stable outlook of rice industry: Rice is consumed in large
quantity in India which provides favorable opportunity for the
rice millers and thus the demand is expected to remain healthy
over medium to long term. India is the second largest producer of
rice in the world after China and the largest producer and
exporter of basmati rice in the world. The rice industry in India
is broadly divided into two segments - basmati (drier and long
grained) and non-basmati (sticky and short grained). Demand of
Indian basmati rice has traditionally been export oriented where
the South India caters about one-fourth share of India's exports.
However, with a growing consumer class and increasing disposable
incomes, demand for premium rice products is on the rise in the
domestic market. Demand for non-basmati segment is primarily
domestic market driven in India. Initiatives taken by government
to increase paddy acreage and better monsoon conditions will be
the key factors which will boost the supply of rice to the rice
processing units. Rice being the staple food for almost 65% of
the population in India has a stable domestic demand outlook. On
the export front, global demand and supply of rice, government
regulations on export and buffer stock to be maintained by
government will determine the outlook for rice exports.
Sri Padmavathi Rice Mill (SPRM) was established in 2017 as a
partnership firm by Mr.P.Gururaj (Managing Partner) and his
family members. The firm is engaged in milling and processing of
rice. The rice milling unit of the firm is located at Koppal
district, Karnataka on a land area of 3.5 acres. Apart from rice
processing, the firm is also engaged in selling of byproducts
such as broken rice, husk and bran. The main input, paddy, is
directly procured from local farmers located in and around Koppal
District and the firm sells rice and other by-products in the
states of Karnataka, Tamil Nadu and Maharashtra.
The total project cost for setting up the unit was INR3.62 crore
which was funded by promoters capital of 1.62 crore and remaining
through the term loan of INR2.00 crore availed from bank. The
firm has started its commercial operations from May 2018 with an
installed capacity of 6 tons of rice per hour. In 5MFY19
(Provisional), the firm has achieved profits of INR0.24 crore on
a total operating income of INR11.20 crore.
TIJIYA ENGINEERING: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Tijiya Engineering
Private Limited (TEPL) for obtaining information through letters
and emails dated March 31, 2018 and September 28, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 1 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Packing Credit 4 CRISIL A4 (ISSUER NOT
COOPERATING)
Standby Line 1 CRISIL A4 (ISSUER NOT
of Credit 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 TEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of TEPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
TEPL, incorporated in 1983, is managed by Mr Rajesh Poddar and Mr
Rajiv Poddar. The company manufactures various mild steel
products such as barbed wire arms, flat and round stakes, clamps,
and rods for the construction and fencing industries.
TMT STEELS: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of TMT
Steels Private Limited (TSPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.50 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Short term Bank 7.50 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TSPL to monitor the
rating(s) vide e-mail communications dated October 12, 2018,
October 11, 2018, October 10, 2018, October 09, 2018, August 27,
2018, July 18, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on TMT Steels Private Limited's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
Detailed description of the key rating drivers
At the time of last rating on September 25, 2018 the following
were the rating strengths and weaknesses:
Key Rating Weaknesses
Stretched liquidity position leading to delays in meeting the
debt obligations: There have been continuous overdrawals in cash
credit account along with interest overdue and devolvement in
letter of credit due to stretched liquidity position consequently
leading to delays in meeting the debt obligations.
TMT Steels Private Limited (TSPL), incorporated in April 2005 is
promoted by Mr. Duvuru Vijaya Kumar Reddy of Nellore district,
Andhra Pradesh (A.P.). The company is engaged in trading of steel
and has been operating its trading activities in Nellore and
Bangalore. TSPL majorly deals in steel products of Rashtriya
Ispat Nigam Limited (RINL), Steel Exchange India Limited and is
the sole distributor for 'Simhadri TMT' brand of TMT bars of SEIL
for Coastal and Rayalaseema districts of A.P (viz. Nellore,
Chittoor, Prakasam, Kadapa, Anantapur) and also for Bangalore
(Karnataka).
VIRTUE MARKETING: CARE Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Virtue
Marketing Private Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 15.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Short term Bank 20.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Virtue Marketing Private
Limited to monitor the rating vide e-mail communications dated
October 15, 2018, October 12, 2018, October 11, 2018, October 10,
2018, October 09, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on Virtue Marketing Private Limited's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
Detailed description of the key rating drivers
At the time of last rating on May 25, 2018 the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Stretched liquidity position leading to delays in meeting the
debt obligations: There have been continuous overdrawals in cash
credit account along with interest overdue and devolvement in
letter of credit due to stretched liquidity position consequently
leading to delays in meeting the debt obligations.
Incorporated in 2013, Virtue Marketing Private Limited (VMPL) is
promoted by Mr. Ramesh Jain and Mr. Hitesh Jain. VMPL is
currently engaged in the trading of Aluminium Plates, Aluminium
Coils, Aluminium Foils, Aluminium Wires, Aluminium Ingots,
Aluminium Conductors, Aluminium Extrusions, steel products and
scraps. The product range finds application in transport,
machinery, defense, healthcare, automobile, engineering etc. The
other company of the promoters, R.E Cables & Conductors Private
Limited (rated CARE D; Issuer Not Cooperating) is into designing,
manufacturing and marketing all types of aluminum products and
scraps. These cables and conductors find its use in power
generating and distributing companies. The company markets the
cables and conductors under 'RECC' brand.
VIVIMED LABS: CARE Lowers Rating on INR266.93cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vivimed Labs Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 266.93 CARE D Revised from CARE BB;
Facilities Stable
Short-term Bank 109.50 CARE D Revised from CARE A4
Facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
Vivimed Labs Ltd is primarily of account of deterioration in the
liquidity profile of the company at the back of cash flow
mismatches resulting in delays in meeting debt obligations. CARE
in its analysis has considered the consolidated business and
financial risk profiles of Vivimed Labs Limited and its
subsidiaries viz., Vivimed Life Sciences Private Ltd, Vivimed
Global Generics Pte. Ltd, Vivimed Speciality Chemicals Pvt. Ltd,
Vivimed Labs Europe Ltd, Vivimed Labs USA Inc, Vivimed Labs
Mauritius Ltd, Vivimed Labs UK Ltd, Vivimed Labs Spain S.L, Union
Quimico Farmaceutical S.A.U, Holiday International Ltd, Uquifa
Mexico S.A DE C.V, Creative Healthcare Private Ltd, Klarsehen
Private Ltd, Finoso Pharma Private Ltd as these entities are
linked through parent-subsidiary relationship and collectively
have management, business & financial linkages.
Detailed description of the key rating drivers
Key rating weakness
Deterioration in the liquidity profile resulting in delays in
meeting debt obligations: The liquidity profile of VLL
deteriorated on account of cash flow mismatches. The same has
resulted in delays with respect to debt servicing of the company.
Decline in consolidated revenues and cash accruals during FY18:
The total operating income of the company at consolidated level
has deteriorated marginally by 4% from INR1238.99 crore in FY17
to INR1195.27 crore in FY18 primarily due to decline in the
revenue from specialty chemical division. The PAT and GCA of the
company during FY18 are on a lower side vis-a-vis FY17, primarily
on account of additional extraordinary income of around INR237
crore received by the company from sale of a unit and certain
spec chem. products to Clariant during Q4FY17. Further, the
company has registered operating income of around INR364.29 crore
in Q1FY19.
Elongated operating cycle: The operating cycle of the company
remains elongated at 191 days for FY17 as against 181 days for
FY16 primarily on account of high inventory period. The average
inventory period has increased from 151 days in FY16 to 168 days
in FY17, however the absolute inventory level has remained almost
stable at INR483.97 crore as on March 31, 2017 as against INR
490.80 crore as on March 31, 2016. On account of large product
portfolio, considerable proportion of exports and longer work in
progress time, the company needs to maintain the finished goods
stock of multiple products at its plant which leads to higher
inventory period. The average working capital utilization of the
company for the 12 months ended September 2017 was around 86%.
Foreign exchange fluctuation risk: Substantial portion of VLL's
(consolidated) sales revenue is the form of exports. Exports
generally at standalone level constitute around 50-60% of the
company's sales. The company has also exposure of foreign
currency loans. Therefore, the company is subjected to the risk
on account of foreign exchange fluctuations.
Exposure to regulatory risk: The company is exposed to regulatory
risk as in India; the prices of pharmaceutical products are
regulated by government through the drug price control order
(DPCO) under price control mechanism. Besides, the pharmaceutical
industry is highly regulated in many other countries and requires
various approvals, licenses, registrations and permissions for
business activities. The approval process for a new product
registration is complex, lengthy and expensive.
Intense Competition: The company faces intense competition in the
domestic as well as international markets. Pricing pressure,
increasing regulation, increased sensitivity towards product
performance are the key issues in the pharmaceutical industry.
The
pharmaceutical industry has been a highly regulated industry
worldwide by virtue of its direct bearing on public health. In
India too, government policies have played a key role in
performance of companies such as explicit control on drug prices
in the form of drug price control order (DPCO). Furthermore, the
patent laws and related regulations might hamper company's plans
to launch new products and cater to new markets.
Key rating strengths
Improved Operating margin during FY18: Excluding the
extraordinary income, the PBILDT, PAT and profitability margins
of the company during FY18 witnessed improvement vis-a-vis FY17.
The PBILDT margin of the company has improved by 407 bps from
14.47% in FY17 to 18.54% in FY18. However, the PAT margin has
declined from 17.90% in FY17 to 6.52% in FY18, as FY17 PAT
includes the extraordinary income. Further, during Q1FY19, PBILDT
margin of the company is 20.46% and PAT margin was 7.86%.
Experienced & qualified promoters and management team: The
promoters of VLL have over two decades of experience in the
pharmaceutical and chemical business. Mr. Santosh Varalwar (CEO&
MD), a management graduate, is mainly responsible for developing
new markets for the company's products. VLL's board is supported
by a team of professionals in the areas of finance, marketing,
quality control, R&D, material and production.
Track record of operations with a unique diversified portfolio of
Pharmaceutical products and Speciality Chemicals: VLL,
established in 1988, is a global player engaged in manufacturing
of speciality chemicals and pharmaceutical products. The company
has 11 manufacturing facilities and 5 R&D facilities spread
across the world. Historically, Speciality Chemical segment was
VLL's main revenue contributor. For FY17, pharmaceutical segment
accounted 68% of gross sales of FY17, while specialty chemical
segment contributed the balance 32%.
Infusion of funds by Orbimed Asia and Strides resulting in
improved capital structure: VLL in order to have a strong
footprint in United States (US) has entered into a JV agreement
in May 2017, with Strides Shasun Ltd for investment of INR75
crore in its subsidiaries Vivimed Life Sciences Pvt Ltd (VLSPL)
and Vivimed Global Generics Pte Ltd. During H1FY18, OrbiMed Asia
has invested USD 42.50 million (Rs.278 crore) in the form of
Compulsorily Convertible Preference Shares (CCPS) in VLL's
subsidiary, Vivimed Labs Mascarene Ltd which is the holding
entity of VLL's API business, UQUlFA as per the definitive
agreement.
The overall gearing of the company on consolidated level improved
to 0.70x as on March 31, 2018 as against 1.48x as on March 31,
2017 at the back of equity infusion, repayment of term debt and
plough back of profits.
Unique diversified portfolio of Pharmaceutical products and
Speciality Chemicals with strong R&D capabilities: VLL has 11
manufacturing facilities and 5 R&D facilities spread across the
world. VLL manufactures over 50 APIs covering over 15+
therapeutic segments at its three international USFDA facilities
in Uquifa Spain and Mexico.Company has exhibited strong R&D over
the years. The company has 5 ANDA approvals and 150+ Drug Master
Files as on September 30, 2017 Further, the company is actively
working on 10-12 new products (Formulations) which are set to go
off patent from 2018 onwards and are in different stages of
filing and are expected to get commercialized over the next 24-36
months.
During FY17, VLL has received ANDA approvals for five products of
which the company commercialized four namely Losartan
(Antihypertensive- Therapeutic segment), Amlodipine
Antihypertensive- Therapeutic segment and Metronidazole
(Antibiotics- Therapeutic Segment) and Donepezil (Anti-Alzheimer-
Therapeutic segment). The fifth product (Zolpidem- Hypnotic -
Therapeutic segment) is expected to be launched in the FY19. The
aforementioned products with good market size help the company in
increasing the revenue going forward.
Incorporated in 1988, Vivimed Labs Limited (VLL) is a listed
company engaged in the business of manufacturing products (active
ingredients, formulations, etc) for pharmaceutical, personal care
and colour chemistry industry. VLL (Consolidated) has
manufacturing facilities in India and overseas (under
subsidiaries). During FY16, VLL divested a part of its Specialty
Chemical business (comprising Home and Personal Care segments) to
Clariant India Limited for INR380 crore. Further, during FY16,
the company has received sanctions from courts for the scheme of
Amalgamation which provides for the amalgamation of the wholly
owned subsidiaries of the company viz., Creative Health Care
Private Limited, Octtantis Nobel Labs Private Limited, KlarSehen
Private Limited and Vivimed Labs (Alathur) Private Limited.
WALMARK MEDITECH: CARE Lowers Rating on INR15.47cr LT Loan to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Walmark Meditech Private Limited (WMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 15.47 CARE D; Issuer Not Cooperating;
Facilities Revised from CARE BB-; Stable
Issuer Not Cooperating
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 1, 2018 placed the
rating of WMPL under the 'issuer non-cooperating' category as
WMPL had failed to provide information for monitoring of the
rating. WMPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone
calls and a letter dated October 16, 2018. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating. The rating has been revised on account of delays in
debt servicing.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing obligations: There are ongoing delays in
repayment of principal and interest obligation of term
loan facility for more than 30 days.
WMPL was incorporated on November 4, 2010 and started with its
commercial production from October, 2012. WMPL is promoted by Mr
Rahul Page, MrsSaroj Page and Mr Vilas Page in the strength of
directors. The company is engaged in manufacturing of personal
hygiene product like adult diapers and baby diapers under the
brand name 'Wetex' and'Nirmal'. The company's registered office
is based out of Pune and manufacturing unit located in Nagpur
with total installed capacity of 4.08 crore pieces per year for
adult diapers and 10.80 crore pieces per year for baby diapers.
=========
J A P A N
=========
MITSUBISHI HEAVY: to Give JPY220B to Aid Struggling Aircraft Unit
-----------------------------------------------------------------
The Japan Times reports that Mitsubishi Heavy Industries Ltd.
said on Oct. 31 it will provide JPY220 billion ($1.94 billion) to
its struggling aircraft subsidiary to bolster its capital and
help its long-delayed development of a regional passenger jet.
According to the report, Mitsubishi Heavy said it will increase
the capital of Mitsubishi Aircraft Corp. by JPY170 billion and
also cancel JPY50 billion of the total debt owed by the
subsidiary, as the aircraft company continued to have a negative
net worth at the end of fiscal 2017.
With the financial support, Mitsubishi Aircraft aims to speed up
the development of the Mitsubishi Regional Jet, the first
commercial passenger jet developed in Japan, as delivery --
initially scheduled for 2013 -- has been delayed five times due
to design modifications.
The subsidiary aims to deliver the first MRJ jet to All Nippon
Airways Co. by the end of 2020.
The Japan Times notes that the development costs for the MRJ have
risen fourfold from the initial estimate to JPY600 billion, and
could also balloon to JPY800 billion, according to company
sources.
Mitsubishi Heavy holds a 64 percent stake in Mitsubishi Aircraft,
with Mitsubishi Corp. and Toyota Motor Corp. each owning a 10
percent stake at the aircraft-maker's current level of capital.
The state-owned Development Bank of Japan has a 1 percent stake,
the report discloses.
The capital increase will raise Mitsubishi Heavy's holding stake
to 86.7 percent, the report notes.
Mitsubishi Heavy Industries, Ltd. --
http://www.mhi.co.jp/indexe.html-- was founded by Yataro
Iwasaki in 1884 as a shipbuilding firm called Nagasaki Shipyard
& Machinery Works, which was later named Mitsubishi Shipbuilding
Co. Ltd., and then again launched as Mitsubishi Heavy
Industries, Ltd. in 1934 as a private firm that manufactured
ships, heavy machinery, airplanes and railroad cars.
In 1950, Mitsubishi Heavy was divided into three separate
entities on a law aimed toward dissolving Nagasaki Shipyard &
Machinery Works and thus dismantling the overconcentration of
economic power. It was later consolidated in 1964 and repborn
as Mitsubishi Heavy Industries, Ltd.
===============
M A L A Y S I A
===============
PETROL ONE: Auditor Issues Qualified Opinion Over FY18 Accounts
---------------------------------------------------------------
Justin Lim at theedgemarkets.com reports that Petrol One
Resources Bhd's external auditor Messrs Baker Tilly Monteiro Heng
has issued a disclaimer of opinion on the group's financial
statements for the financial year ended June 30, 2018 (FY18).
In a filling with Bursa Malaysia on Oct. 31, Baker Tilly said the
basis of its qualified opinion was due to it not being able to
obtain sufficient or appropriate audit evidences regarding plans
for the group to achieve sustainable and viable operations, as
well as generate adequate cash flows from its operating
activities, theedgemarkets.com relates.
Petrol One had incurred a net loss of MYR10.5 million for FY18.
The company also recorded net current liabilities of MYR48.71
million, capital deficiency of MYR47.15 million and accumulated
losses of MYR80.06 million, theedgemarkets.com discloses.
"In view of the matters set out above, there are material
uncertainties that may cast significant doubt on the ability of
the group and the company to continue as going concerns," Baker
Tilly said.
According to theedgemarkets.com, the external auditor noted it
was unable to ascertain the appropriateness of the carrying value
of investment within its subsidiaries, or the amount due from
them, which amount to MYR 939,177 and MYR69.63 million
respectively.
theedgemarkets.com relates that Baker Tilly also pointed to other
issues relating to the marine equipment, where it was also unable
to obtain sufficient and appropriate audit evidences to support
the carrying value of the marine equipment in FY17.
In FY18, the company reported a net loss of MYR10.51 million,
compared with a net profit of MYR73.8 million the year before.
Revenue, however, rose 5.51% to MYR12.5 million from MYR11.9
million in FY17.
The Practice Note 17 (PN17) company was delisted from the Main
Market of Bursa Malaysia on Aug. 24, after the company failed to
implement its regulation plan by. Aug 11, despite numerous
extensions granted by Bursa Securities, theedgemarkets.com
discloses.
On Oct. 3, the company was granted extention for submission of
its regularisation plan until Nov. 20.
About Petrol One
Petrol One Resources Berhad is engaged in investment holding and
provision of management services to the subsidiaries. The
Company's main commercial activities are centered on storage of
crude oil and its derivative products such as fuel oil and
petrochemicals both in onshore facilities, as well in floating
storage units; oil terminal support services; leasing and
operating standby safety vessels for rig support; ship-to-ship
transfer operations.
The company slipped into Practice Note 17 (PN17) status on
Aug. 30, 2012, after the shareholders' equity of the group on a
consolidated basis was less than 25% of its issued and paid-up
capital, which was also less than MYR40 million.
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S I N G A P O R E
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HYFLUX LTD: To Seek Four-Month Extension of Debt Moratorium
-----------------------------------------------------------
The Business Times reports that Hyflux is likely to seek an
additional four months of reprieve from creditors before its
current court-approved debt moratorium expires on Dec. 18.
If granted more time, the insolvent water project developer hopes
to reach a deal with its creditors via a court-sanctioned scheme
of arrangement by April next year, a Singapore High Court heard
on Oct. 31 during an interim update on the restructuring, the
report relates.
According to BT, WongPartnership lawyer Manoj Sandrasegara, who
represents Hyflux, added that the company intends to file an
application for super priority for rescue financing under Section
211E of the Companies Act by Nov. 1. Hyflux announced on Oct. 19
that it had found a "strategic investor" in SM Investments, a
consortium made up of Salim Group and Medco Group.
SM Investments has agreed to give Hyflux a SGD400 million equity
injection in exchange for a 60 per cent stake in the company once
it has settled all its debts, BT says. SM Investments will also
grant Hyflux a shareholder's loan of SGD130 million and a debtor-
in-possession loan of SGD30 million to help finance it through
the restructuring, the report relates. The deal is subject to the
approval of creditors as well as the PUB and other authorities.
It will include debt-for-equity swaps since Hyflux does not have
enough cash to clear all its debts. SM Investments has also
agreed to issue shares to certain key members of the Hyflux
management team to ensure management continuity, BT discloses. It
remains to be seen what terms Hyflux's lenders are willing to
accept for the SGD530 million that SM Investments has put
forward, the report notes.
Hyflux continues to face the heat from bank creditors. According
to BT, Tan Kok Quan Partnership lawyer Eddee Ng, who represents
BNP Paribas, Mizuho Bank, KFW IPEX-Bank, Bangkok Bank and
Standard Chartered Bank, told the court on Oct. 31 that creditors
need more visibility over Hyflux's financial affairs in order to
assess "if this is going to be a pointless restructuring".
"We've seen widely varying numbers for the cashflow forecasts
that have come on the 13th, 21st and 25th of September. We must
know what's gone into them . . . and how likely are certain
things that have been put in," the report quotes Mr. Ng as
saying.
The estimated costs to complete the TuasOne waste-to-energy plant
have also doubled in a matter of months, Mr. Ng flagged. On
May 22, when Hyflux filed for court protection, the costs were
estimated at SGD85 million. The figure was revised to SGD132
million in June, and SGD172 million in October. The expected
project completion date is now September 2019, from May 2019
previously.
"Information must be given for the creditors to assess what are
we doing under six months of restructuring if we are not heading
anywhere," Mr. Ng, as cited by BT, said.
The entire Hyflux group had bank debts of about SGD1.84 billion
in June. Note holders are owed SGD265 million. Perp and
preference shareholders are owed SGD900 million, BT discloses.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The
company operates through two segments, Municipal and Industrial.
The Municipal segment supplies a range of infrastructure
solutions, including water, power, and waste-to-energy to
municipalities and governments. The Industrial segment supplies
infrastructure solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering
Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux
Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied
to the High Court of the Republic of Singapore pursuant to
Section 211B(1) of the Singapore Companies Act to commence a
court supervised process to reorganize their liabilities and
businesses. The Company said it is taking this step in order to
protect the value of its businesses while it reorganises its
liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this
process.
*********
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 ***