/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/190110.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, January 10, 2019, Vol. 22, No. 007 Headlines A U S T R A L I A AMJ TRANSPORT: First Creditors' Meeting Set for Jan. 17 EGI AUDIO-VISUAL: Second Creditors' Meeting Set for Jan. 17 CALATAFIMI ENTERPRISES: Second Creditors' Meeting Set for Jan. 17 CAPITAL WASTE: First Creditors' Meeting Set for Jan. 18 COMPLETE CAFFE: Second Creditors' Meeting Set for Jan. 17 MICHEAL JOHNSON: Second Creditors' Meeting Set for Jan. 17 R DEVELOPMENTS: Second Creditors' Meeting Set for Jan. 18 YWORLD PTY: First Creditors' Meeting Set for Jan. 17 C H I N A CHANGDE URBAN: Fitch Rates USD100MM Sr. Unsec. Notes Final 'BB+' HNA GROUP: Sells Manhattan Building Near Trump Tower POWERLONG REAL: Moody's Rates Proposed Sr. Unsec. USD Notes B2 H O N G K O N G NOBLE GROUP: Moody's Pulls Caa1 CFR After Financial Restructuring I N D I A ACHAMPET NAGAR: Ind-Ra Withdraws 'B' LT Rating, Outlook Stable ALY MICRONS: CRISIL Reaffirms 'B' Rating on INR11cr LT Loan AMISH DAIRY: CARE Assigns 'B+' Rating to INR7.46cr LT Loan AMTEK AUTO: NCLAT Queries Liberty House on its Bid ANDOLE-JOGIPET: Ind-Ra Withdraws 'B' LT Rating, Outlook Stable CALCUTTA RADIO: Ind-Ra Migrates BB- LT Rating to Non-Cooperating CALTRON INFO: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating CHOUDHARY FASHIONS: Ind-Ra Migrates BB+ Rating to Non-Cooperating DUBBAKA NAGARA: Ind-Ra Withdraws B- Issuer Rating, Outlook Stable DWARKA GEMS: CRISIL Reaffirms 'B' Rating on INR6.88cr Cash Loan ESSAR STEEL: NCLT Reserves Order on Bid to January 31 GADDALA FINANCIAL: CRISIL Reaffirms B Rating on INR6cr LT Loan GAJWEL-PRAGNAPUR: Ind-Ra Withdraws 'B+' LT Rating, Outlook Stable HARRA POLYFLEX: Ind-Ra Withdraws 'BB-' LT Rating, Outlook Stable IL&FS: Macquarie Infra Said to Be Among Interested Buyers KALOL STEEL: ICRA Reaffirms B+ Rating on INR4cr Fund Based Loan KANCHAN GANGA: ICRA Withdraws 'B' Rating on INR11.25cr Loan KASA ANLAGEN: CRISIL Reaffirms B+ Rating on INR2.5cr Cash Loan KAY BEE: CRISIL Reaffirms B- Rating on INR7cr Cash Loan KHANNA POLYWEAVE: CARE Lowers Rating on INR15cr LT Loan to D LEXUS MOTORS: ICRA Reaffirms B+ Rating on INR85cr Fund Based Loan M S GRAPHICS: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable MADHAVA HYTECH: ICRA Cuts Rating on INR10cr Bank Loan to D MEC SHOT: CARE Lowers Rating on INR6.50cr ST Loan to 'D' MEDAK MUNICIPALITY: Ind-Ra Withdraws BB- Rating, Outlook Stable MVD INFRADEVELOPERS: CRISIL Assigns B+ Rating to INR1cr Loan P. HITESH & CO: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating RAGHUNATH AGRO: ICRA Assigns 'B' Rating to INR30cr Cash Loan SA AANANDAN: Ind-Ra Moves BB Issuer Rating to Non-Cooperating SAHIBZADA TIMBERS: Ind-Ra Migrates BB- Rating to Non-Cooperating SHRI GEETA: Ind-Ra Withdraws BB- LT Issuer Rating, Outlook Stable SHRINET AND SHANDILYA: CRISIL Assigns B+ Rating to INR1.5cr Loan SJS BIOTECH: CARE Reaffirms B+ Rating on INR12.60cr LT Loan SKD REALTY: ICRA Maintains B+ Rating in Not Cooperating Category SRI SAI BABA: ICRA Assigns 'B' Rating to INR10cr LT Loan SRI SATHYA: CRISIL Reaffirms 'B' Rating on INR3cr Cash Loan STARBIGBLOC BUILDING: Ind-Ra Assigns BB- Rating, Outlook Stable TARU AGENCIES: CRISIL Assigns B+ Rating to INR10cr LT Loan TEESTA URJA: ICRA Reaffirms D Rating on INR4,096.49cr Term Loan TRACK INNOVATIONS: ICRA Reaffirms B+ Rating on INR15cr Loan VASANT COTTON: ICRA Reaffirms B+ Rating on INR5.50cr Loan VINTAGE HOME: CARE Reaffirms 'D' Rating on INR5.75cr LT Loan N E W Z E A L A N D TARATAHI AGRICULTURAL: SIT Keen on Taking Over Telford Campus S I N G A P O R E OBIKE SINGAPORE: Creditors Meeting Set for January 23 - - - - - ================= A U S T R A L I A ================= AMJ TRANSPORT: First Creditors' Meeting Set for Jan. 17 ------------------------------------------------------- A first meeting of the creditors in the proceedings of AMJ Transport NSW Pty Ltd will be held on Jan. 17, 2019 at 10:30 a.m. at Level 27, 259 George Street, in Sydney, NSW. Trent Andrew Devine and Peter John Moore of Jirsch Sutherland were appointed as administrators of AMJ Transport on Jan. 7, 2019. EGI AUDIO-VISUAL: Second Creditors' Meeting Set for Jan. 17 ----------------------------------------------------------- A second meeting of creditors in the proceedings of EGI Audio- Visual (Retail) Pty Ltd has been set for Jan. 17, 2019, at 11:00 a.m. at Level 43, 600 Bourke 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 Jan. 16, 2019, at 4:00 p.m. John Ross Lindholm and Stewart McCallum of Ferrier Hodgson were appointed as administrators of EGI Audio-Visual on Nov. 26, 2018. CALATAFIMI ENTERPRISES: Second Creditors' Meeting Set for Jan. 17 ----------------------------------------------------------------- A second meeting of creditors in the proceedings of Calatafimi Enterprises Pty Ltd has been set for Jan. 17, 2019, at the offices of Mackay Goodwin, Suite D, Level 14, 241 Adelaide Street, in Brisbane, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Jan. 16, 2019, at 4:00 p.m. Domenico Alessandro Calabretta of Mackay Goodwin was appointed as administrator of Calatafimi Enterprises on Dec. 3, 2018. CAPITAL WASTE: First Creditors' Meeting Set for Jan. 18 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Capital Waste Pty Ltd ATF the 'Lynch Family Trust' & 'Capital Scrap Trust', trading as Capital Waste Services' and 'Canberra Waste Skips' will be held on Jan. 18, 2019, at 11:00 a.m. at The Atlas Room, at Hellenic Club, 13 Moore Street, in Canberra, ACT. Michael Slaven and Aaron Torline of Ernst & Young were appointed as administrators of Capital Waste on Jan. 8, 2019. COMPLETE CAFFE: Second Creditors' Meeting Set for Jan. 17 --------------------------------------------------------- A second meeting of creditors in the proceedings of Complete Caffe Company Pty Ltd, trading as Caffe Cena, has been set for Jan. 17, 2019, at 10:30 a.m., at the offices of Suite 1103, Level 11, 147 Pirie Street, in Adelaide, SA. 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 Jan. 16, 2019, at 5:00 p.m. Nicholas David Cooper and Dominic Charles Cantone of Worrells Solvency & Forensic Accountants were appointed as administrators of Complete Caffe on Dec. 3, 2018. MICHEAL JOHNSON: Second Creditors' Meeting Set for Jan. 17 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Micheal Johnson Landscapes Pty. Limited has been set for Jan. 17, 2019, at 11:00 a.m. at the offices of Level 7, 151 Castlereagh Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Jan. 16, 2019, at 4:00 p.m. Shumit Banerjee and Jason Lloyd Porter of SVP were appointed as administrators of Micheal Johnson on Dec. 3, 2018. R DEVELOPMENTS: Second Creditors' Meeting Set for Jan. 18 --------------------------------------------------------- A second meeting of creditors in the proceedings of R Developments Pty Ltd has been set for Jan. 18, 2019, at the offices of RSM Australia Partners, Equinox Building 4, Level 2, 70 Kent St, in Deakin, ACT. 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 Jan. 17, 2019, at 5:00 p.m. Frank Lo Pilato of RSM Australia Partners was appointed as administrator of R Developments on Dec. 4, 2018. YWORLD PTY: First Creditors' Meeting Set for Jan. 17 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Yworld Pty Ltd will be held on Jan. 17, 2019, at 2:00 p.m. at the offices of Courtney Jones & Associates, at Level 1, Suite 5, 443 Little Collins Street, in Melbourne, Victoria. Mathew Terence Gollant of Courtney Jones & Associates was appointed as administrator of Yworld Pty on Jan. 8, 2019. ========= C H I N A ========= CHANGDE URBAN: Fitch Rates USD100MM Sr. Unsec. Notes Final 'BB+' ---------------------------------------------------------------- Fitch Ratings has assigned China-based Changde Urban Construction and Investment Group Co., Ltd.'s (CUCI, BB+/Stable) USD100 million 7.2% senior unsecured notes due 2020 a final rating of 'BB+'. The notes are directly issued by CUCI. The assignment of the final rating follows the receipt of documents conforming to information already received. Proceeds will be used to refinance debt and for general corporate purposes. KEY RATING DRIVERS The bonds are rated at the same level as CUCI's Issuer Default Rating as they constitute its direct, unconditional, unsubordinated and unsecured obligations and rank pari passu with all its other senior unsecured obligations. RATING SENSITIVITIES Any change in CUCI's Issuer Default Rating will result in a similar change in the rating of the notes. HNA GROUP: Sells Manhattan Building Near Trump Tower ---------------------------------------------------- Gillian Tan at Bloomberg News reports that HNA Group Co. sold a building in Manhattan to help ease the embattled conglomerate's debts and stave off U.S. concerns about a Chinese company owning property near Trump Tower. HNA completed the sale, the group said in a statement, without providing details, Bloomberg relates. Bisnow reported earlier that investor and real estate developer Jacob Chetrit and his sons bought the tower in a $422 million transaction that resulted in a loss for HNA, Bloomberg says. The Chinese group, which bought the tower for $463 million with its partners before Donald Trump became president, had been trying to sell the property since at least early 2018. According to Bloomberg, the sale adds to the more than $20 billion in disposals that Chinese conglomerate has agreed to, including real estate holdings from San Francisco to Minneapolis, since last year to reduce its massive debts. But the Manhattan building stood out because of the national-security concerns associated with the tower. Bloomberg relates that the sale also comes amid simmering tensions between the U.S. and China's government, which last year was said to have decided to help HNA, the largest foreign buyer of U.S. office buildings in 2017, pull itself out of chronic liquidity challenges. The sale to a U.S. buyer is likely to satisfy concerns from the Committee on Foreign Investment in the U.S. regarding HNA's ownership of the building, which houses one of only two police precincts that are within a mile of Trump Tower, the president's base when he's in New York, Bloomberg says. Hainan, China-based HNA owned 90 percent of the tower, with minority partners MHP Real Estate Services and Atco Properties & Management LLC owning the rest, the report notes. 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 related that HNA Group defaulted on a CNY300 million (US$44 million) loan raised through Hunan Trust. 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. POWERLONG REAL: Moody's Rates Proposed Sr. Unsec. USD Notes B2 -------------------------------------------------------------- Moody's Investors Service has assigned a B2 rating to Powerlong Real Estate Holdings Limited's proposed senior unsecured USD notes. The rating outlook is stable. Powerlong plans to use the proceeds from the proposed notes mainly to refinance its existing indebtedness. RATINGS RATIONALE "The proposed bond issuance will support Powerlong's liquidity profile and will not materially affect its credit metrics, because the company will use the proceeds mainly to refinance existing debt," says Cedric Lai, a Moody's Assistant Vice President and Analyst. Moody's expects that Powerlong's rental income will grow some 25%-30% annually to around RMB1.3 billion in 2019 from RMB856 million in 2017, underpinned by its scheduled opening of new retail malls. As a result, Powerlong's adjusted rental income/interest coverage will stay around 0.4x over the next 12-18 months, largely flat from the level seen in 2017. Moody's also expects that Powerlong's adjusted EBIT/interest will improve to around 2.5x over the next 12-18 months from 2.3x for the 12 months ended June 30, 2018, and for adjusted debt/adjusted capitalization to improve mildly to 55% from 56% over the same period. Powerlong's B1 corporate family rating reflects its (1) track record of developing and selling commercial and residential properties; (2) increasing recurring revenue, which improves the stability of its debt servicing; and (3) expansion into higher- tier cities in China where demand for its properties is more favorable. However, its credit profile is constrained by execution risk, the high level of capital required for its business strategy, and high debt leverage, as measured by revenue/debt. The B2 senior unsecured debt rating is one notch lower than the corporate family rating due to structural subordination risk. This risk reflects the fact that the majority of claims are at the operating subsidiaries and have priority over Powerlong's senior unsecured claims in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the likely recovery rate for claims at the holding company will be lower. The stable ratings outlook reflects Moody's expectation that Powerlong will (1) continue to grow its contracted sales, especially for commercial properties; (2) ramp up its malls to generate rental revenue streams that will improve rental income/interest coverage to about 0.4x-0.5x over the next 12-18 months; and (3) maintain adequate liquidity and exercise prudence in its land acquisitions. Upward ratings pressure could emerge if Powerlong continues to grow in scale, while maintaining its adequate liquidity and sound credit metrics, and improves its debt leverage to a level that matches its business model of holding investment properties. Credit metrics that could trigger a ratings upgrade include: (1) adjusted EBIT/interest above 3.5x; (2) rental income/interest coverage above 0.6x; (3) adjusted debt/adjusted total capitalization below 50%; and/or (4) cash/ short-term debt above 1.5x on a sustained basis. Moody's could downgrade Powerlong's ratings if the company shows a deterioration in sales or undertakes more aggressive expansion that weakens its credit metrics. Credit metrics that could trigger a ratings downgrade include: (1) adjusted EBIT/interest below 2.5x; (2) rental income/interest below 0.4x; (3) adjusted debt/adjusted total capitalization above 55%; and/or (4) cash/short-term debt below 100%. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. Powerlong Real Estate Holdings Limited is a Chinese developer focused on building large-scale integrated residential and commercial properties in China. The company listed on the Hong Kong Exchange in October 2009. The founding Hoi family held 61% of the total number of issued shares of the company at July 5, 2018. At June 30, 2018, Powerlong's land bank for development totaled around 18.0 million square meters in gross floor area under development and for future development. ================ H O N G K O N G ================ NOBLE GROUP: Moody's Pulls Caa1 CFR After Financial Restructuring ----------------------------------------------------------------- Moody's Investors Service has withdrawn the Caa1 corporate family rating on Noble Group Limited, the Ca ratings on its senior unsecured notes, and the (P)Ca rating on its senior unsecured medium-term note (MTN) program. At the time of withdrawal, the outlook on the ratings was negative. LIST OF AFFECTED RATINGS Outlook, Changed To Rating Withdrawn From Negative Corporate Family Rating, Withdrawn, previously rated Caa1 Senior Unsecured Medium-Term Note Program (Foreign Currency), Withdrawn, previously rated (P)Ca Senior Unsecured Regular Bond/Debenture (Foreign Currency), Withdrawn, previously rated Ca RATINGS RATIONALE Moody's has withdrawn the ratings because of the completion of Noble's financial restructuring on December 20, 2018. Following the restructuring, Noble Group Holdings Limited acquired substantially all of the assets of Noble Group Limited. The company's existing notes have been cancelled and delisted from the Singapore Exchange. Noble Group Limited was a manager of global supply chains for physical commodities. The company's activities across these chains included the sourcing, storage, processing, transportation, and distribution of various commodity products. ========= I N D I A ========= ACHAMPET NAGAR: Ind-Ra Withdraws 'B' LT Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Achampet Nagar Panchayat's Long-Term Issuer Rating of 'IND B'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the rating, as no specific debt was issued against the rating. COMPANY PROFILE Achampet Nagar Panchayat is responsible for the provisioning and governance of civic services in Achampet, a town in the Nagarkurnool district of Telangana. ALY MICRONS: CRISIL Reaffirms 'B' Rating on INR11cr LT Loan ----------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long- term bank facilities of Aly Microns LLP (AML). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (Reaffirmed) Long Term Loan 11 CRISIL B/Stable (Reaffirmed) The rating continues to reflect AML's lower-than-expected sales during the initial phase of operations and a subdued financial risk profile. These weaknesses are partially offset by the extensive experience of the partners in the ceramic manufacturing industry, and strategic location of the plant. Analytical Approach Unsecured loans extended to AML by the partners have been treated as neither debt nor equity. That is because these interest-free loans should remain in the business over the medium term. Key Rating Drivers & Detailed Description Weakness * Lower-than-expected sales: Since AML commenced commercial operations only from April 2018, it managed to generate just INR6.49 crore till November 30, 2018. Further, AML faces low demand owing to intense competition from the numerous large ceramic units in the region. * Average financial risk profile: Gearing is expected to be high at 2.5-3 times over the medium term due to establishment of debt- funded project. However, gearing may moderate with build-up in networth and gradual repayment of term loan. Debt protection metrics are also expected to remain weak. Strengths * Extensive experience of the partners: AML has 13 partners, who have significant experience of around two decades through other entities such as Delthi Ceramic, Sanjivini Ceramics, Skyview Ceramic, and Lancosa Ceramics LLP. Benefits from the partners' experience, their strong understanding of local market dynamics, and healthy relations with customers and suppliers should continue to support the business. * Strategic location of plant: The manufacturing plant is in Morbi, Gujarat, which accounts for 65-70% of ceramic tiles production in India. Easy procurement of raw material and labour increases operating efficiency. Outlook: Stable CRISIL believes AML will continue to benefit from the extensive experience of the partners and strategic location of the plant. The outlook may be revised to 'Positive' if anticipated operations lead to better-than-expected revenue, profitability, and cash accrual during the initial phase. Conversely, the outlook may be revised to 'Negative' if cash accrual is lower than fixed repayment obligation, or if a stretch in the working capital cycle weakens the financial risk profile and liquidity. Liquidity Liquidity is likely to remain average over the medium term due to large working capital requirement. As AML is yet in the initial stages of operations, the unsecured loans extended by the partners may support debt repayment in fiscal 2019. However, from fiscal 2020 onwards, the firm is expected to generate sufficient cash accrual to meet its maturing debt. Set up in 2017, AML is a partnership firm commenced its commercial operations from April 2018. The Morbi-based firm is engaged into manufacturing and purifying of soda and potash feldspar that are used in making ceramic products. AMISH DAIRY: CARE Assigns 'B+' Rating to INR7.46cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned CARE B+ rating to the bank facilities of Amish Dairy & Foods Private Limited (APL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term bank Facilities 7.46 CARE B+; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of APL is constrained on account of project stabilization risk, nascent & small scale of operations, product concentration risk, low capitalization & weak debt coverage indicators, working capital intensive nature of operations and exposure to intense competition and susceptibility to changes in regulations and epidemics affecting the dairy industry. The rating however, derives strength from experienced and highly qualified promoters. The ability of ADFPL to increase its scale of operations and improvement in profitability margins and capital structure along with efficient management of working capital requirement along with timely completion of project are the key rating sensitivities. Detailed description of Key rating drivers Key Rating Weaknesses Project stabilization risk: ADFPL has completed the project in April 2017 at a cost of INR8.75 crore, funded through debt of INR7.51 crore and remaining through promoter's infusion of INR2.24 crore. However part installation of effluent treatment plant is pending which will be completed by February 2019. ADFPL's leverage ratios remained on the higher side as on March 31, 2018, because of loans for the capex undertaken as well as the bank borrowings to meet the working capital requirements. FY18 was the first full year of operations. PBILDT margin is expected to remain thin on account of the low value addition to the product. Nascent & small scale of operations: The company commenced commercial production in April 2017. Thus the overall operations are at a nascent stage. In FY18 the company earned PAT of INR0.13 crore on a total of revenue of INR8.35 crore. Moreover, in 8MFY19, as well the company has earned revenue of only INR11.00 crore. With repayment for one term loan already commenced from April 2017 and repayment of other term loan commencing from May 2019, its ability to use the capacity at envisaged utilization levels and generate sufficient accruals shall be critical from credit perspective. Product concentration risk: ADFPL has set up a milk processing unit with installed capacity of 50,000 to 1,00,000 litres of milk per day. ADFPL will procure raw/unprocessed milk and will convert this milk into pasteurized form. As of now, the firm does not plan to venture into milk products like Sweet and Condensed Milk (SCM), Skimmed Milk Powder (SMP), etc. which is usually high margin products vis-Ö-vis pasteurized milk. Hence, product profile of ADFPL is concentrated primarily on pasteurized milk which has a limited shelf life. Low Capitalization & weak debt coverage indicators: ADFPL has a negative net worth (amounting to INR0.84 crore as on March 31, 2018), which limits its financial flexibility to meet any exigency. Moreover, due to low profitability and thereby lower accruals, the overall debt coverage indicators marked to TDGCA also remain weak (at 37.71x in FY18) and interest coverage ratio of 1.56x in FY18. Working capital intensive nature of operations: The operations of ADFPL are less working capital intensive in nature on account of the product being highly perishable in nature and having a limited shelf life. The company procures the raw milk on a daily basis from the dairy farmers and processes it regularly. Generally they operate on cash basis, however, when the purchases are made in bulk by the customers, the credit period gets stretched to 15 days. Similarly, the company enjoys credit period of 10 to 15 days from its suppliers, however when it procures the raw milk in bulk quantity, it gets further relaxation in making payment to its suppliers. Exposure to intense competition and susceptibility to changes in regulations and epidemics affecting the dairy industry: The dairy industry in India is highly fragmented, which restricts the bargaining power of medium-sized players such as Amish with suppliers and customers, thus constraining their working capital management. Furthermore, the price of key raw material (milk) is sensitive to regulatory policies and environmental conditions, which affects profitability. Key rating Strengths Experienced and highly qualified promoters: ADFPL is managed and promoted by Mr. Pradeep Tiwari and family who possess moderate experience in the dairy industry. Amish Dairy & Foods Private Limited (ADFPL) was incorporated as a private limited company in March 2015. However the operations started in April 2017. The company is promoted by Mr. PradeepTiwari and is engaged in processing of milk and milk products viz. sweet curd, lassi, buttermilk, ghee, paneer, sweet items like peda, etc. They procure the milk from the local dairy farmers on a daily basis and process it into pasteurized milk at its processing plant located at Siwan, Bihar, with current installed capacity of 50,000 to 1,00,000 litres of milk per day and post the processing and packaging, it is dispatched to the market in Patna (Bihar) and Uttar Pradesh through distributors, under the brand name 'Gopad' in pouches of 500 ml and 1 litre. The milk is available in five variants viz. full cream milk, toned milk, standard milk, tea milk and cow milk. ADFPL has certifications and approvals namely Food Safety License, Pollution Board Approvals and Broiler Inspection in place. AMTEK AUTO: NCLAT Queries Liberty House on its Bid -------------------------------------------------- Livemint.com reports that the National Company Law Appellate Tribunal (NCLAT) has asked if UK-based Liberty House is willing to go ahead with its resolution plan for the debt-ridden Amtek Auto in which it has emerged as the highest bidder. Livemint.com relates that the appellate tribunal has also asked the Committee of Creditors (CoC) if it has a higher bid for Amtek Auto other than that of Liberty House or not. A two-member bench of the appellate tribunal headed by Justice S J Mukhopadhaya has asked the counsel of the respective parties to take instruction from the client and inform the bench, the report says. According to Livemint.com, the NCLAT has issued notice to the CoC, resolution professional (RP) of Amtek Auto and directed to list the matter on January 22 for the next hearing. The appellate tribunal was hearing a petition filed by Liberty House, the report says. During the proceedings, senior advocate A S Chandiok representing Liberty House said that once the CoC recommends the adjudicating (NCLT) after selecting the highest bidder, it does not have power to call it back. "If somebody wants to give more money, then we are ready to look at it. They should tell us the new amount, which they are getting," the report quotes Chandiok as saying. In March last year, Liberty House, part of Sanjeev Guptas global industrial group GFG Alliance, said it emerged as the successful highest bidder for Amtek Auto, Livemint.com notes. Following which, RP of Amtek Auto submitted resolution plan as approved by CoC to the Adjudicating Authority (NCLT) for approval under section 30 of Insolvency & Bankruptcy Code. However, Liberty House made no payments despite repeated requests from the RP to do so, the lenders said. It has also not submitted a bank guarantee of INR100 crore to lenders, following which they filed an application before NCLT to cancel the approval as it failed to pay, the report notes. The CoC had also sought to bar Liberty House from bidding for any insolvent company, Livemint.com adds. Based in India, Amtek Auto Limited (BOM:520077) -- http://www.amtek.com/aal.php -- engages in automotive components manufacturing and commercial sales. The Company is engaged in forging, grey and ductile iron casting, gravity and high pressure aluminum die casting and machining and sub-assembly. It has a product portfolio with a range of engineered components, including flywheel ring gears, machining, forging, casting aluminum and casting iron. The Company supplies components for passenger cars, light and heavy commercial vehicles, 2/3 wheelers, light weight commercial vehicles and heavy weight commercial vehicles. The Company has facilities across India, the United Kingdom, Germany, Brazil, Italy, Mexico, Hungary and the United States. The Company also manufactures components for non- auto sectors, such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment. ANDOLE-JOGIPET: Ind-Ra Withdraws 'B' LT Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Andole-Jogipet Nagara Panchayat's Long-Term Issuer Rating of 'IND B'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the rating, as no specific debt was issued against the rating. COMPANY PROFILE Andole-Jogipet Nagara Panchayat, situated in the Sangareddy district of Telangana, was upgraded to nagara panchayat from gramapanchayat on March 22, 2013. It is responsible for the provisioning and governance of civic services in the town. CALCUTTA RADIO: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Calcutta Radio Service Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR105 mil. Fund-based limit migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 15, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1986, Calcutta Radio Service provides IT hardware distribution services in West Bengal. CALTRON INFO: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Caltron Info Trade Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR145 mil. Fund-based limit migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 8, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in July 2002, Caltron Info Trade is engaged in IT hardware distribution. It has various branch offices and channel partners across India. CHOUDHARY FASHIONS: Ind-Ra Migrates BB+ Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Choudhary Fashions' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR23.31 mil. Long-term loans due on September 2021 migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR197.5 mil. Fund-based facilities migrated to non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 17, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Choudhary Fashions manufactures and exports ladies woven garments as well as kids wear. It has also started a new ladies knitwear division on the same lines. Its head office is located in Mumbai and all the manufacturing units are located in Jaipur. DUBBAKA NAGARA: Ind-Ra Withdraws B- Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Dubbaka Nagara Panchayat's Long-Term Issuer Rating of 'IND B-'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the rating, as no specific debt was issued against it. COMPANY PROFILE Dubbaka Nagara Panchayat is responsible for the provisioning and governance of civic services in the Dubbaka town. DWARKA GEMS: CRISIL Reaffirms 'B' Rating on INR6.88cr Cash Loan --------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Dwarka Gems Limited (DGL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 0.75 CRISIL B/Stable (Reaffirmed) Cash Credit 6.88 CRISIL B/Stable (Reaffirmed) Packing Credit 2.75 CRISIL A4 (Reaffirmed) The rating continues to reflect modest scale, working capital- intensive operations and a weak financial risk profile. These weaknesses are partially offset by extensive experience of its promoters in the jewellery industry. Analytical Approach Unsecured loans outstanding at INR4.08 crore as on March 31, 2018 have been treated as debt as management intends to repay them in the wake of excess reserves available with the company. Key Rating Drivers & Detailed Description Weakness * Modest scale and working capital intensity in operations: The domestic jewellery industry is highly fragmented and dominated by the unorganized sector, leading to a modest scale; revenue stood at INR9 crore and INR12.3 crore during 2019 (April- Nov) and 2018, respectively. Moreover, the operations are highly working capital intensive marked by gross current assets of 860 days driven by inventory of 619 days, as on March 31, 2018. * Weak financial risk profile: The financial risk profile was weak, led by low accrual because of modest scale. Interest coverage was reported at 0.87 time for 2018, which is expected to improve to above 1 time going forward, while the gearing was moderate at 1.12 times as on mentioned date. Strength: * Extensive experience of proprietor: Presence of nearly a decade in the gold jewellery manufacturing and trading business has enabled the proprietor to establish strong relationship with clients. Outlook: Stable CRISIL believes DGL will continue to benefit over the medium term from the extensive experience of its proprietor. The outlook may be revised to 'Positive' if better accrual backed by increased scale and margin or capital infusion improves the financial risk profile, while working capital needs are efficiently managed. Conversely, the outlook may be revised to 'Negative' if capital structure and liquidity weaken on account of stretched working capital cycle or if any large, debt-funded capital expenditure, weakens the financial risk profile. Low scale or accrual may also lead to a negative outlook. Liquidity: Liquidity is aided by promoter's financial support via unsecured loans. Though accrual is low, however, with no debt obligation, the available accrual can be utilised to finance incremental working capital needs. The bank lines (of INR10.38 crore) remain highly utilised averaging 91% for 7 months through October 2018, while the current ratio stood comfortable at 2.04 times as on March 31, 2018. Set up in 1987 as a public limited company by Mr Krishna Goyal., a first-generation entrepreneur, DGL manufactures gold ornaments and jewellery for the wholesale market. It is primarily engaged into exports and also sells to retailers in South India and Maharashtra. ESSAR STEEL: NCLT Reserves Order on Bid to January 31 ----------------------------------------------------- MoneyControl.com reports that the Ahmedabad bench of the NCLT reserved its verdict on the maintainability of the bid by Essar Steel Asia Holdings to retake the management of the crippled company. The NCLT bench comprising BP Chaturvedi and Manorama Kumari said they will pass an order on the plea by January 31, the report says. ArcelorMittal, whose INR42,000-crore offer to take over the bankrupt Essar Steel was accepted by the committee of creditors, on Jan. 7 told NCLT that there is no right to redemption under the bankruptcy laws as being sought by Essar Steel Asia Holdings. It said as per section 12A of the IBC Act only resolution professional has right to file such an application after getting the approval of 90 percent of the lenders. In their submission, the lenders requested that the matter be decided expeditiously in the interest of all the parties involved, the report states. According to MoneyControl.com, Essar Steel Asia Holdings told the bench that lenders not considering its debt settlement proposal, which was higher than its rival offer, is surprising. Essar Steel Asia had proposed to the lenders led by State Bank of India, to pay an upfront INR54,389 crore to retake the management, which "ensures full repayment to all the creditors, including operational creditors." ArcelorMittal has opposed this claiming that it was against the Supreme Court order as well as the provisions of the bankruptcy laws, the report relates. Essar Steel, which runs a 10-million-tonne steel mill in Gujarat, owes over INR49,000 crore to over two dozen banks led by the State Bank and has been under the bankruptcy proceedings since June 2017, MoneyControl.com discloses. As per ArcelorMittal's resolution plan, INR42,000 crore will be paid to the secured lenders, while an additional INR8,000 crore will be pumped in as working capital. MoneyControl.com adds that the NCLT is also hearing petitions filed by close to 30 operational creditors of Essar Steel seeking settlement of their dues from ArcelorMittal. These operational creditors have moved the NCLT against the resolution plan offered by the world's largest alloy maker ArcelorMittal as it denies settlement to operational creditors with over INR1 crore dues, the report adds. About Essar Steel Incorporated in 1976, Essar Steel India Ltd. is a part of the Essar Group and is having 10 MTPA integrated steel manufacturing facilities at Hazira, Gujarat and iron ore beneficiation and pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag, Andhra Pradesh (8 mtpa). The company also owns and operates two iron ore slurry pipelines -- one each in Odisha (Dabuna to Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the iron ore slurry from the beneficiation plant (located near the iron ore mines in Dabuna and Kirandul) to the pellet plant (located near the Paradip and Vizag ports). A large portion of the iron ore pellets produced are intended for captive consumption by ESIL's steel plant at Hazira for cost optimization. The National Company Law Tribunal (NCLT) - Ahmedabad Bench admitted Essar Steel's insolvency case on Aug. 2, 2017. Satish Kumar Gupta of Alvarez and Marsal India has been appointed as interim resolution professional upon the suggestion of State Bank of India (SBI). Essar Steel owes more than INR45,000 crore to lenders, of which INR31,671 crore had already been declared as non-performing as of March 31, 2016, The Economic Times disclosed. The SBI-led consortium of 22 creditors accounts for 93% of this amount. Essar Steel owes $450.67 million to Standard Chartered Bank (SCB) in debt. GADDALA FINANCIAL: CRISIL Reaffirms B Rating on INR6cr LT Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the proposed long-term bank loan facility of Gaddala Financial Services Private Limited (GFS). The rating reflects the company's small scale of operations with geographic concentration, and modest resource profile. These weaknesses are partially offset by adequate capitalisation and extensive experience of the promoter. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 6 CRISIL B/Stable (Reaffirmed) Analytical Approach For arriving at the rating, CRISIL has considered the standalone business and financial risk profile of GFS. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations with geographic concentration: With assets under management of INR3.7 crore as on September 30, 2018, the company's scale is small compared with other non-banking financial companies. Moreover, operations are confined to five districts in Telangana and are susceptible to local and social economic issues. * Modest resource profile: GFS has only one financing relationship. The ability to raise more borrowed funds needs to be demonstrated. * Inherent modest credit profile of the borrowers: A significant portion of the portfolio comprises unsecured lending portfolio with below average credit risk profiles and lack of access to formal credit. These borrowers are small business owners or small traders and their income flows could be volatile and dependant on the local money. Strengths * Adequate capitalisation: Capitalisation remained adequate, as reflected in networth of INR2.4 crore and gearing of 0.7 time as on September 30, 2018. The gearing is expected to remain below 2 times in the near term. * Extensive experience of the promoter: The promoter has extensive experience in the financing business. Before GFS, he managed a society that had a considerable microfinance portfolio. However, due to crisis in the microfinance sector in Andhra Pradesh, the society shut down operations. The management has deep understanding of the region the company operates in. Outlook: Stable Capitalisation is likely to remain adequate over the medium term. However, the scale of operations is expected to remain modest and geographically concentrated. The outlook may be revised to 'Positive' if market position improves significantly and if the company is able to borrow funds without compromising asset quality. The outlook may be revised to 'Negative' if asset quality and profitability deteriorate, thereby impacting capitalisation. Liquidity The company has maintained cash and cash equivalent of INR2.2 lakh. It has projected receipts of INR74.7 lakh from its borrowers against debt obligation of INR26 lakh for the next 4 months. GFS is promoted by Mr John Gaddala, who acquired the company from Mr Poorna Chandra Rao in 2009. The company was earlier called Vanki Neni, and operated as a hire purchase firm. After its acquisition and renaming, it started operations as an NBFC in 2010. The company is a NBFC offering secured & unsecured loans to individuals. The company directly lends to individuals. GFS is based out of Telangana confined to only few districts such as Warangal, Mahubudabad, Jangaon and Hyderabad. The company offers two types of portfolio unsecured loans to small business or traders and housing construction loans. The unsecured business loans have a shorter tenure with three months to one year. The yields charged by the company range between 20 to 24%. The housing construction loans typically have a long tenure of three years and the yields charged are at 15%.It operates only in a few districts of Telangana, such as Warangal, Mahubudabad, Jangaon, and Hyderabad. GAJWEL-PRAGNAPUR: Ind-Ra Withdraws 'B+' LT Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Gajwel- Pragnapur Nagarpanchayat's Long-Term Issuer Rating of 'IND B+'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the rating, as no specific debt was issued against the rating. COMPANY PROFILE Gajwel-Pragnapur is a town in the Siddipet district of Telangana. The town is 66km away from the state capital, Hyderabad. In 2012, Gajwel-Pragnapur (erstwhile Gajwel Gram Panchayat) was constituted as a nagarpanchayat. According to the 2011 census, the town had a population of 37,881 and had 9,011 households. GPNP is responsible for the provisioning and governance of civic services in the town. HARRA POLYFLEX: Ind-Ra Withdraws 'BB-' LT Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed and withdrawn Harra Polyflex Private Limited's (HPPL) Long-Term Issuer Rating of 'IND BB-'. The Outlook was Stable. The instrument-wise rating actions are: -- INR36.66 mil. Term loans# due on March 2021 affirmed & withdrawn and the rating is withdrawn; and -- INR50 mil. Fund-based facilities* affirmed & withdrawn and the rating is withdrawn. # Affirmed at 'IND BB-'/Stable before being withdrawn * Affirmed at 'IND BB-'/Stable/'IND A4+' before being withdrawn KEY RATING DRIVERS The affirmation reflects HPPL's continued small scale of operations, as indicated by revenue of INR242 million in FY18 (FY17: INR279 million). The revenue declined on a yoy basis because of a drop in orders. Also, the company had booked sales of only INR91.3 million till November 2018. The return on capital employed stood at 14% in FY18 (17%) and the EBITDA margin was average at 12.3% (12.4%). Further, the ratings reflect the continued modest credit metrics. HPPL's interest coverage (operating EBITDA/gross interest expense) improved to 13.1x in FY18 (2.2x) due to scheduled repayment of term loans, but its net financial leverage (total adjusted net debt/operating EBITDA) remained high at 3.5x (3.4x). In addition, cash flow from operations declined to INR13 million in FY18 (INR28 million), while free cash flow fell to INR13 million (INR26 million). The ratings are also constrained by the intense competition in the plastic packaging industry. The ratings factor in the promoters' experience of over three decades of experience in the woven fabrics and polypropylene sacks manufacturing business, which has led to longstanding relationships with customers and suppliers. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Incorporated in 2013, HPPL manufactures high-density polyethylene/polypropylene fabrics, woven sacks and biaxially oriented polypropylene films for cement, fertilizers and food grain companies. It began commercial operations in April 2014. IL&FS: Macquarie Infra Said to Be Among Interested Buyers --------------------------------------------------- Saloni Shukla and Rajesh Kumar Singh at Bloomberg News report that Macquarie Infrastructure & Real Assets and NTPC Ltd., India's largest power utility, are among companies interested in buying some of the renewable energy assets of beleaguered shadow financier Infrastructure Leasing & Financial Services Ltd., people familiar with the matter said. Bloomberg relates that GAIL India Ltd. and Solar Energy Corporation of India have also submitted expression of interest to buy the assets, the people said asking not to be identified as the information isn't public. IL&FS is expecting the sale of wind and solar energy assets to fetch as much as INR80 billion ($1.14 billion), one of the people said. Discussions are at an early stage, and may not result in a deal, the people said, Bloomberg relays. According to Bloomberg, the asset sales are key to reviving IL&FS, whose defaults sparked fears of a contagion across the financial system in India. The group, which had total debt of $12.6 billion as of March 31, has been defaulting on loans and bonds since August. Arpwood Capital Pvt. and JM Financial Ltd. were appointed to advise IL&FS on the asset sales, an emailed statement from the group showed in November, Bloomberg discloses. 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. KALOL STEEL: ICRA Reaffirms B+ Rating on INR4cr Fund Based Loan --------------------------------------------------------------- ICRA has reaffirmed the ratings on the bank facilities of Kalol Steel & Alloys Private Limited (KSAPL) at [ICRA]B+(Stable)/ [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 4.00 [ICRA]B+(Stable); Reaffirmed Non-fund Based Limits 2.00 [ICRA]A4; Reaffirmed Unallocated Limits 0.56 [ICRA]B+(Stable); Reaffirmed Rationale The rating reaffirmation continues to remain constrained by the company's weak financial risk profile, characterised by low profitability, stretched capital structure and weak coverage indicators. The ratings are further restricted by the limited value-added operations and the susceptibility of its operating profitability to fluctuations in raw material (steel scrap) prices, which remain linked to global movement in steel scrap prices. Fluctuating prices, coupled with highly competitive and fragmented secondary steel industry, further constrains the profitability, evident from the moderation in operating profitability in FY2018. The ratings reaffirmation, however, continues to favourably factor in the extensive experience of the promoters in the secondary steel industry, and the easy access to quality raw material - from raw material suppliers located in proximity and from its Group concern (Mariya Ship Breaking Private Limited). Outlook: Stable ICRA believes that KSAPL will continue to benefit from the experience of its promoters in the secondary steel industry. The outlook may be revised to Positive if substantial growth in revenue and profitability leads to higher-than-expected net cash accruals, which coupled with equity infusion, strengthens the financial risk profile. Conversely, the outlook may be revised to Negative if substantial decline in sales and profitability leads to lower-than-expected cash accruals; or any debt-funded capital expenditure or stretch in the working capital cycle weakens the capital structure and the overall liquidity. Key rating drivers Credit strengths Extensive experience of promoters in secondary steel industry: The promoters of KSAPL have more than two decades of experience in the steel industry by virtue of their engagement with associate concerns, Mariya Ship Breaking Private Limited, Amar Steel Industries, Shree Subhadra Steel Private Limited and Sainath Industries, which are engaged in the same line of business such as ship breaking, rolling mill and steel trading. Location-specific advantages: The company benefits from its easy access to quality raw material from suppliers in its proximity and its Group concern. Credit challenges Moderate financial risk profile: The operating income of KSAPL continues to remain moderate, though it increased by 29% to INR37.96 crore in FY2018 from INR29.37 crore in FY2017 due to increase in sales volume. The profitability continues to remain low because of low value-added operations and stiff competition. The operating profitability declined to 2.20% in FY2018 from 2.62% in FY2017 mainly due to increase in raw material price, which the company was not able to fully pass on to its customers due to stiff competition. Consequently, the net margin declined to 0.22% in FY2018 from 0.27% in FY2017. The capital structure continued to remain leveraged, with gearing of 2.46 times as on March 31, 2018, due to low net worth and high reliance on working capital facility needed to fund its working capital requirements. Low profitability and high debt level resulted in weak debt protection metrics, with interest coverage ratio of 1.43 times, Total Debt/OPBDITA of 5.70 times and NCA/Debt of 7% in FY2018 end. Exposure to price risk as inventory procurement is not backed by orders from customers: KSAPL typically maintains an inventory of around 50 days and its product procurement is usually not order backed. Furthermore, the inventory levels are determined by the management's expectation on raw material prices. This arrangement exposes KSAPL's profitability to adverse movements in raw material prices, which remain linked to global movement in steel scrap prices. Intense competition due to low entry barriers: The iron and steel manufacturing industry is marked by many participants across different levels of the value chain. KSAPL is a relatively small- sized player in the industry. Furthermore, the company is involved in manufacturing ingots, which entails relatively low value addition. This segment of the industry is highly fragmented, given the low entry barriers as well as the relatively low technical and capital intensity, which limit the pricing flexibility of the participants, including KSAPL. Liquidity position: KSAPL's fund flow from operations (FFO) remained positive in FY2018, though free cash flow (before the debt repayment) was negative due to high working capital requirement. The working capital limits were almost fully utilised during September 2017 to November 2018 period. The overall liquidity position of the company remains moderate in the absence of any major debt-funded capex and debt repayments in near to medium term. Incorporated in 2010, Kalol Steel & Alloys Private Limited (KSAPL) manufactures mild steel (MS) ingots. Its manufacturing unit is in Kalol, Gujarat, and is equipped with an induction furnace with an annual manufacturing capacity of 12,500 metric tonnes. Promoters of the company are associated with other Group companies, namely Mariya Ship Breaking Private Limited, Amar Steel Industries, Shree Subhadra Steel Private Limited and Sainath Industries, who are also involved in the same line of business such as ship breaking, rolling mill and steel trading. In FY2018, the company reported a net profit of INR0.08 crore on an operating income (OI) of INR37.96 crore as against a net profit of INR0.08 crore on an OI of INR29.37 crore in FY2017 KANCHAN GANGA: ICRA Withdraws 'B' Rating on INR11.25cr Loan ----------------------------------------------------------- ICRA has withdrawn the ratings on the bank facilities of Kanchan Ganga Seed Company Private Limited (KGSCPL): Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- Cash Credit 11.25 [ICRA]B (Stable); Withdrawn Unallocated Facilities 0.75 [ICRA]B (Stable); Withdrawn Rationale The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension at the request from the company based on no objection certificate provided by its lenders. Key rating drivers Key Rating drivers has not been captured as the rated instruments are being withdrawn. Liquidity Position: Key Rating drivers has not been captured as the rated instruments are being withdrawn. Kanchan Ganga Seed Company Private Limited (KGSCPL) was incorporated in the year 1984 by Mr. Jivan Thakur ,Mr. G. Venkaiah and Dr. Vimal J Thakur, and is engaged in the production and marketing of hybrid seeds and has a portfolio of over 30 hybrid seeds across maize, jowar, bajra, tomato and others. The R&D facility for the company was started in the year 1986. The company has a processing plant in Nizamabad district of Telangana with a total capacity of 8 tons per hour and seed drying plant in Karnataka with capacity of 100 tons per day. KASA ANLAGEN: CRISIL Reaffirms B+ Rating on INR2.5cr Cash Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Kasa Anlagen India Private Limited (KAIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4.5 CRISIL A4 (Reaffirmed) Bill Discounting 1.0 CRISIL A4 (Reaffirmed) under Letter of Credit Cash Credit 2.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 1.0 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect KAIPL's modest scale of operations and exposure to risks related to regulatory changes or cyclicality in the capital goods industry. However, these weaknesses are partially offset by the experience of the promoter in the electrical equipment industry. Analytical Approach USL of INR1.92 Crores is considered as neither debt nor equity (NDNE). Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and intense competition: The firm has a modest scale of operations, marked by revenue of INR26.52 crore in fiscal 2018. Also, intense competition limits the pricing power with customers and suppliers, thereby constraining profitability. * Exposure to regulatory changes or cyclicality in the capital goods industry: KAIPL is highly dependent on capital goods industries such as power, cement, steel and coal. Any adverse impact or any regulatory changes in these industries can drastically weaken KAIPL's business, as seen in fiscal 2014. Strength * Experience of promoter: The promoter, Mr M S Balaji, is a graduate in electrical engineering, with 30 years of experience in electrical and automation systems. Mr Pramod Balaji, son of Mr M S Balaji, joined the business in 2009 and has been instrumental in forming a joint venture with Kasa Companies Inc. Outlook: Stable CRISIL believes KA will continue to benefit over the medium term from the experience of the promoters. The outlook may be revised to 'Positive' if substantial increase in profitability and scale of operations, and prudent working capital management strengthens liquidity. Conversely, the outlook may be revised to 'Negative' if low profitability, or stretched working capital cycle weakens liquidity. Liquidity Risk Profile The liquidity profile was moderate. The utilization of bank limits was around 52% in the last twelve months ending October 2018. Also, the firm has reported cash accruals of around INR 70 Lakhs with repayment obligations of INR 94 Lakhs. The firm is expected to generate sufficient cash accruals to meet the repayment obligations in the in the medium term. Further, the firm has an unencumbered cash and bank balance of INR 1.77 Crores. Also, the liquidity is supported by the unsecured loans from the promoters of INR1.92 Crores. KAIPL, formerly known as Elektro Anlagen (EA), manufactures power and control panels as per customer specifications, and provides solutions in application study and development, software development, commissioning, training, after-sales service system integration and start-up, and turnkey project management. In January 2011, EA entered into a joint venture with Kasa Companies Inc, USA, to incorporate KA. The promoter, Mr M S Balaji, is based in Chennai. KAY BEE: CRISIL Reaffirms B- Rating on INR7cr Cash Loan ------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B-/Stable' rating on the bank facilities of Kay Bee Cotgin Private Limited (KBCPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B-/Stable (Reaffirmed) The ratings continue to reflect the modest scale of KBCPL's operations in the intensely competitive cotton industry, weak financial risk profile, and exposure to fluctuations in raw material price. These weaknesses are partially offset by the extensive experience of the promoters and their funding support. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations amid intense competition: Intense competition may continue to constrain scalability, pricing power, and profitability. Revenue was modest at INR46 crore in fiscal 2018. * Weak financial risk profile: Financial risk profile is likely to remain average over the medium term. Networth was modest at INR1.50 crore as on March 31, 2018, with high gearing of 7.74 times. The interest coverage ratio was low at 1.01 times in fiscal 2018. * Exposure to fluctuations in cotton prices: Since cost of procuring the major raw material (cotton) accounts for a bulk of the production expense, even a slight variation in price can drastically impact profitability. Strength * Extensive experience of the promoters: Benefits from the promoters' experience of two decades, their strong understanding of local market dynamics, healthy relations with customers and suppliers, and timely, need-based funds should continue to support the business. Outlook: Stable CRISIL believes KBCPL will continue to benefit from the extensive experience of the promoters. The outlook may be revised to 'Positive' if a substantial and sustainable increase in revenue and profitability strengthens the financial risk profile. Conversely, the outlook may be revised to 'Negative' if a steep decline in revenue and profitability, a stretch in the working capital cycle, or any large, debt-funded capital expenditure weakens the financial risk profile and liquidity. Liquidity High bank limit utilization: Utilisation - averaging 99% for the 10 months ended November 30, 2018 - is expected to remain high over the medium term due to large working capital requirement. Cash accrual and debt obligation: Cash accrual projected at INR0.17 crore per annum over the medium term is expected to remain insufficient to meet the yearly maturing debt of INR0.20 crore Moderate current ratio: The ratio was 1.42 times as on March 31, 2018. KBCPL, incorporated in 1997, gins and presses cotton at its facility in Abohar, Punjab. Mr Ashok Gandhi and family are the promoters. KHANNA POLYWEAVE: CARE Lowers Rating on INR15cr LT Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Khanna Polyweave Private Limited (KPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 15.00 CARE D; Issuer not cooperating; Facilities Revised from CARE BB-; Stable on the basis of best available information Detailed Rationale & Key rating Drivers CARE has been seeking information from KPPL to monitor the ratings vide e-mail communications/ letters dated December 15, 2018 and numerous phone calls. However, despite our repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the ratings on the basis of the available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, KPPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The ratings on KPPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The revision in the ratings of KPPL takes into account delay in debt servicing of term loans. Detailed description of the key rating drivers Key rating weaknesses Irregularity in debt servicing: There are instances of two to three days delay in debt servicing of term loans. Rewa (Madhya Pradesh) based Khanna Polyweaves Private Limited (KPPL) was incorporated in 2009 as Private Limited by Khanna family. KPPL is engaged in the manufacturing of Polypropylene (PP) and High-Density Polyethylene (HDPE) based woven sack bags and fabrics. LEXUS MOTORS: ICRA Reaffirms B+ Rating on INR85cr Fund Based Loan ----------------------------------------------------------------- ICRA has reaffirmed the ratings on the bank facilities of Lexus Motors Limited (LML) at [ICRA]B+ (Stable)/[ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 85.00 [ICRA]B+ (Stable); reaffirmed Non-fund Based Limits 2.00 [ICRA]A4; reaffirmed Untied Limits 13.00 [ICRA]B+ (Stable)/[ICRA]A4; Reaffirmed Rationale The reaffirmation of the ratings considers the cyclicality and the inherently low margins in the automobile dealership business due to industry dynamics and the commission structure decided by the principal. LML has a weak financial profile, characterised by an aggressive capital structure and depressed level of coverage indicators. The ratings continue to be impacted by the project off-take risk, given the ongoing slowdown in the commercial real- estate segment in Kolkata, however, some improvements have been witnessed in the recent past. The ratings, however, derive comfort from the promoters' experience in the automobile dealership business, with a track record of over two decades and the established market position of LML in Kolkata as an authorised dealer of Tata Motors Limited (TML) for both commercial vehicles (CV) and passenger vehicles (PV) segments, and as the sole dealer of Jaguar Land Rover (JLR) in eastern India. In ICRA's opinion, the company's ability to improve profitability and capital structure, while efficiently managing its working capital requirements will remain key rating sensitivities. Outlook: Stable ICRA believes that the company will continue to benefit from the long experience of the promoters. The outlook may be revised to Positive if the company is able to scale up its operations while improving profitability, capital structure, and coverage indicators. The outlook may be revised to Negative if there is any increase in the working capital requirement, which could adversely impact the liquidity position of the company. Key rating drivers Credit strengths Experience of the promoters: The promoters have experience of over two decades in the automobile dealership business. The promoters' track record in the business mitigates the operational risk to an extent. Established position as an authorised dealer of TML in Kolkata: The company is among the leading dealers of TML in eastern India, dealing in the entire range of commercial/ passenger vehicles along with JLR vehicles. LML is also the sole dealer for the JLR segment in eastern India and operates through two showrooms and one workshop in Kolkata and Cuttack. In addition, the company has 12 showrooms (seven PVs and five CVs), six workshops (three PVs and three CVs) and three customer service points for CVs spread across Kolkata. TML has also authorised LML to supply vehicles to the government organisations in the eastern region. Credit challenges Weak financial profile characterised by a highly leveraged capital structure and depressed coverage indicators: The capital structure of the company continued to remain leveraged, as depicted by a gearing of 9.38 times as on March 31, 2018 compared to 7.00 times as on March 31, 2017. High debt levels coupled with low profitability kept the coverage indicators depressed as reflected by an interest coverage of 1.37 times, NCA/total debt of 4% and TD/OPBDITA of 10.07 in FY2018. Muted demand for the showroom-cum-real-estate project at Rajarhat: Ongoing slowdown in the commercial real-estate market in Kolkata exposes the project to off-take risk; however, some improvements have been witnessed in the recent past. ICRA further notes that LML has significant debt repayment obligations, which are likely to keep its cash flows under pressure in the near to the medium term. Inherently low margins due to industry dynamics and commission structure regulated by the principal: The operating profit margin of auto dealers, including LML, is inherently low due to the high-volume, low-margin business nature of the industry and intense competition among dealers. Besides, auto dealers are regulated by the OEM to a large extent and the commission structure is decided by the principal, which also restricts the margin. Exposed to the cyclicality of the industry: The company remains exposed to the inherent cyclicality of the Indian passenger as well as commercial vehicle industry. Liquidity position The company has sizeable long-term debt repayment obligations in the coming years. The working-capital intensity of the company has remained at 22% as on March 31, 2018. ICRA further notes that LML's liquidity will continue to remain stretched due to high working capital requirement and significant debt repayment obligations in the near to the medium term. Incorporated in 1991, Lexus Motors Limited (LML) is involved in the business of automobile dealership and is an authorised dealer of Tata Motors Limited (TML). LML started its operations with light commercial vehicle and was subsequently given the franchise of multi-utility vehicles, medium and heavy commercial vehicles and passenger cars of TML. Since FY2011, LML also started dealing in models of Jaguar Land Rover (JLR) in arrangement with TML. LML is the sole dealer for the JLR segment in eastern India. The company is in the process of developing a showroom-cum-real- estate project in Auto Hub, Rajarhat, Kolkata. M S GRAPHICS: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed M S Graphics Private Limited's (MSGPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR160 mil. Fund-based limits affirmed with IND BB/Stable rating; and -- INR20 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects MSGPL's continued small scale of operations as indicated by revenue of INR451 million in FY18 (FY17: INR421 million). The growth in revenue was due to addition of new customers. The company's return on capital employed was 7% in FY18 and operating EBITDA margin was modest at 4.6% (FY17: 4.2%). Despite the decline in revenue, the margins improved due to a reduction in Goods and Services tax levied on printing plates. The ratings continue to factor in MSGPL's modest credit metrics as reflected by interest coverage (operating EBITDA/gross interest expense) of 1.1x in FY18 (FY17: 1.1x) and net leverage (total adjusted net debt/operating EBITDAR) of 9.7x (10.3x). The improvement in net leverage was attributed to an increase in absolute EBITDA to INR20.63 million in FY18 (FY17: INR17.53 million). The ratings are constrained by the company's tight liquidity position as indicated by 93.66% average use of its fund-based limit during the 12 months ended November 2018. MSGPL had an elongated net working capital cycle of 171 days in FY18 (FY17: 180 days, FY16: 164 days), due to an increase in debtor period to 294 days (255 days). Cash flow from operations has been negative since FY16 (FY18: INR19.82 million, FY17: INR6.28 million, FY16: INR0.80 million) due to high working capital requirement. At FYE18, it had a cash and cash equivalents of INR32.32 million. However, the ratings benefit from MSGPL's promoters' more than two and a half decades of experience in the trading of printing plate machineries and inks. RATING SENSITIVITIES Negative: A further decline in the revenue and a decline in the overall credit metrics, all on a sustained basis, will be negative for the ratings. Positive: A substantial improvement in the revenue and credit metrics, all on a sustained basis, would be positive for the ratings. COMPANY PROFILE Incorporated in 1991, MSGPL is engaged in the trading of printing plates and printing ink. The company is managed by Chandra Mohan Shroff and Mohit Shroff. Its sales offices are located in Kolkata, Chennai, Delhi, Guwahati and Bengaluru. MADHAVA HYTECH: ICRA Cuts Rating on INR10cr Bank Loan to D ---------------------------------------------------------- ICRA has revised the ratings on the bank facilities of Madhava Hytech Infrastructures (India) Private Limited to [ICRA]D . Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 4.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Reassigned from [ICRA]B(Stable) and Rating continue to remain in 'Issuer Not Cooperating' category Non-Fund based- 10.00 [ICRA]D ISSUER NOT COOPERATING; Bank Guarantee Reassigned from [ICRA]A4 and Rating continue to remain in 'Issuer Not Cooperating' category Unallocated 5.00 [ICRA]D/[ICRA]D ISSUER NOT Limits COOPERATING; Reassigned from [ICRA]B(Stable)/[ICRA]A4 and Rating continue to remain in 'Issuer Not Cooperating' category Rationale The rating is downgraded primarily based on the public information available to ICRA that the company has not been meeting its debt servicing obligations in a timely manner. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. As part of its process and in accordance with its rating agreement, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Madhava Hytech Infrastructures India Private Limited (MHIIPL) was incorporated in 2008 by Mr. K Pradeep Kumar and his family members. The company is involved in the construction of roads, bridges, and railway tracks in states like Andhra Pradesh, Karnataka, Tamil Nadu, and North-eastern states. MHIIPL was incorporated post the demerger of Madhava Hytech Engineers Pvt. Ltd. (MHEPL) with effect from April 1, 2009. MHEPL was incorporated by Mr. Madhava Rao (father of Mr. K. Pradeep Kumar). He has over 30 years of experience in the construction industry. As per the court decision on demerger, MHIPL and MHEPL would continue to retain the registrations and credentials of MHEPL. MEC SHOT: CARE Lowers Rating on INR6.50cr ST Loan to 'D' -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Mec Shot Blasting Equipments Private Limited (MSBEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short- 5.50 CARE D/CARE D; Issuer Not term Bank Cooperating; Revised from Facilities CARE B+/CARE A4; Issuer Not Cooperating on the basis of best available information Short-term Bank 6.50 CARE D; Issuer Not Facilities Cooperating; Revised from CARE A4; Issuer Not Cooperating on the basis of best available information Detailed Rationale & Key rating Drivers CARE has been seeking information from MSBEPL to monitor the ratings vide e-mail communications/letters dated December 15, 2018 and numerous phone calls. However, despite our repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the ratings on the basis of the available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, MSBEPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The ratings on MSBEPL's bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The revision in the ratings of MSBEPL takes into account as the account of the company has turned NPA. Detailed description of the key rating drivers Key rating weaknesses Irregularity in debt servicing: The account of the company has turned down NPA owing to stressed liquidity position. Jodhpur (Rajasthan) based MEC Shot Blasting Equipments Private Limited (MSBE) was formed in 1990 by Mr. Anand Kishore Modi. MSBE provides solution in the field of surface preparation through air operated and airless/turbine blasting machines. It designs and manufactures shot blasting and shot peening machines with media conveying dust collectors, painting & baking rooms and its accessories. MEDAK MUNICIPALITY: Ind-Ra Withdraws BB- Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Medak Municipality's Long-Term Issuer Rating of 'IND BB-'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the rating, as no specific debt was issued against it. COMPANY PROFILE Medak Municipality was constituted in 1953 and is classified as a second-grade municipality. The municipality is responsible for the provisioning and governance of civic services in the town of Medak. MVD INFRADEVELOPERS: CRISIL Assigns B+ Rating to INR1cr Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Mvd Infradevelopers Private Limited (MVD). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL A4 (Assigned) Cash Credit 1 CRISIL B+/Stable (Assigned) The ratings reflect a modest scale of operations, large working capital requirement, and a leveraged capital structure. These weaknesses are partially offset by the extensive experience of the promoter in the construction industry and moderate debt protection metrics. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Intense competition and uncertainty involved in a tender-based business lead to volatility in revenue. Revenue declined to INR1.13 crore in fiscal 2018 from INR25 crore in fiscal 2017 as fewer tenders were floated following a change in the state government. Revenue is expected at around INR40 crore in Fiscal 2019 driven by moderate order book of INR80 crore to be executed in the next 15-18 months. Any change in policies in awarding of contracts or in payment terms of contractors could adversely affect profitability and performance. * Large working capital requirement: The construction business is working capital intensive primarily because of security deposits and retention money required to be maintained with government departments. This is partially supported by stretching payments to creditors. * Leveraged capital structure: The gearing and total outside liabilities to tangible networth ratio were high at 1.21 times and 3.86 times, respectively, due to a modest networth of INR3.05 crore, as on March 31, 2018. Strengths * Extensive industry experience of the promoter: The promoter has an experience of around 20 years in executing civil construction works for government department such as the public works department in Uttar Pradesh. This has enabled him to develop technical and project management capability to execute mid-sized and large projects. * Moderate debt protection metrics: The estimated interest coverage and net cash accrual to total debt ratios were 5.0 times and 0.22 time, respectively, for fiscal 2018, driven by moderate profitability. Outlook: Stable CRISIL believes MVD will continue to benefit from the extensive industry experience of its promoter and moderate orders in hand. The outlook may be revised to 'Positive' in case of significant and sustained increase in revenue along with capital infusion, thus strengthening the financial risk profile. The outlook may be revised to 'Negative' if low cash accrual, a stretched working capital cycle, or unanticipated large, debt-funded capital expenditure (capex) weakens the financial risk profile, particularly liquidity. Liquidity: Liquidity is adequate. Cash accrual is expected at INR1.5-1.6 crore against term debt obligation of INR0.15 crore, per fiscal over the medium term. There are no capex plans over this period. The current ratio was moderate at 1.44 times as on March 31, 2018. The cash credit limit of INR1 crore remains unutilised, but the bank guarantee limit of INR5 crore is fully utilised. MVD was established in 2010 in Uttar Pradesh by Mr Premshankar Jaiswal. The company is a government contractor working for the Uttar Pradesh PWD to undertake projects related to construction of roads in the state. P. HITESH & CO: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated P. Hitesh & Co.'s Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR85 mil. Fund-based working capital facilities migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; -- INR18.6 mil. Term loan due on September 2018 - March 2022 migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR111.4 mil. Proposed fund-based working capital facilities* migrated to non-cooperating category with Provisional IND BB+ (ISSUER NOT COOPERATING) / Provisional IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR35 mil. Proposed term loan* migrated to non-cooperating category with Provisional IND BB+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 5, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 1998, P. Hitesh & Co. is owned and managed by the Mehta family. The firm is engaged in the cutting and polishing of -2, +2, +6.5, +11-carat-sized diamonds. It has a manufacturing facility in Surat, Gujarat, and a registered office in Mumbai, Maharashtra. RAGHUNATH AGRO: ICRA Assigns 'B' Rating to INR30cr Cash Loan ------------------------------------------------------------ ICRA has assigned [ICRA]B (Stable) ratings to the bank facilities of Raghunath Agro Commodities (RAC). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Limits-Cash Credit 30.00 [ICRA]B (Stable); Assigned Short Term- Fund based Limits 85.00 [ICRA]A4; Assigned Short Term- Non-fund- based limits 12.00 [ICRA]A4; Assigned Rationale The ratings consider RAC's nascent stage of operations in the highly fragmented ginning industry and commoditised nature of the product, leading to low pricing power. The rating also factors in the firm's weak financial profile as reflected by low profitability, high gearing and stretched coverage indicators for FY2018. The firm's revenues and profitability are exposed to fluctuations in the prices of raw material, cotton, which is an agro-commodity, and its prices are subject to seasonality and crop harvest. The rating also considers the risks associated with partnership nature of firm. The ratings, however, favourably factor in the extensive experience of the partners spanning over four decades in the cotton ginning industry resulting in the established customer and supplier base of the firm. The ratings also consider the location advantage with firm's proximity to cotton growing areas of Adilabad, providing logistic advantage. Outlook: Stable ICRA believes that RAC will continue to benefit from extensive experience of its partners in the ginning industry. The outlook may be revised to Positive if the scale of operations and profitability improve or if there is sustained improvement in the capital structure. The outlook might be revised to Negative if any significant debt-funded capital expenditure, or lower-than- expected cash accruals, or stretched working capital cycle weakens its capital structure and liquidity position. Key rating drivers Credit strengths Long experience of partners: RAC is promoted be Mr. Raghunath Mittal who has extensive experience in cotton ginning and trading industry. The partners operate other companies engaged in the similar line of business leading to established supplier base and sales network. Moreover, RAC outsources ginning activity to one of its group companies limiting its capital outlay. Locational advantage: The firm's unit is located near major cotton growing areas of Telangana resulting in easy availability of raw materials and savings in transportation costs. Credit challenges Nascent stage of operations: The firm started operations in February 2018 and reported revenues of INR5.8 crore in 2M FY2018. The firm's financial profile is weak, characterised by thin net margin (1.1% in FY2018), high gearing and stretched coverage indicators. Intense competition and fragmentation in the industry given the low entry barriers: The firm faces stiff competition from organised and unorganised players limiting its pricing flexibility and bargaining power. Profitability exposed to fluctuation in raw material prices which is subject to seasonality and Government regulations: The firm's profit margins are exposed to the fluctuation in raw material prices, which depend upon factors like seasonality, monsoon condition, international demand and supply situation, export policy etc. Further, it is exposed to the regulatory risks, as prices are decided through the minimum support price, set by the Government. Inherent risks being a partnership firm: Being a partnership firm, it is vulnerable to capital withdrawals by the partners. Liquidity Position The firm's liquidity position is expected to remain moderate given no term loan repayments, moderate average working capital utilisation and no major debt funded capex in the near term. Raghunath Agro Commodities (RAC) was constituted as a partnership firm in February 2017 and started operations in February 2018. The firm is involved in the ginning and trading of cotton seed, lint and bales with the ginning process being outsourced to the group companies. The firm is located at Adilabad, Telangana. The partners of the firm possess more than two decades of experience in cotton trading business. SA AANANDAN: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated S.A.Aanandan Spinning Mills Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR84.5 mil. Long-term loans due on September 2022 Migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating; -- INR450 mil. Fund-based Facilities migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR60 mil. Non-fund-based Facilities migrated to non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 9, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1996, S.A.Aanandan Spinning Mills manufactures cotton yarn in the count range of 20s-100s. The company has an annual installed capacity of 21,264 spindles. SAHIBZADA TIMBERS: Ind-Ra Migrates BB- Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sahibzada Timbers' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR170 mil. Fund-based working capital limits Migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 2, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sahibzada Timbers is a proprietorship firm that is based in Mohali, Punjab. It is managed by Mr. Narinder Singh Sandhu and his son Mr. Jaspratap Singh Sandhu. The firm processes and trades timber and ply. SHRI GEETA: Ind-Ra Withdraws BB- LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed and withdrawn Shri Geeta Sacks Private Limited's (SGSPL) Long-Term Issuer Rating of 'IND BB-'. The Outlook was Stable. The instrument-wise rating action is: --INR150 mil. Non-fund-based facilities* affirmed & withdrawn and the rating is withdrawn. *Affirmed at 'IND A4+' before being withdrawn KEY RATING DRIVERS The affirmation reflects SGSPL's continued small scale of operations as indicated by revenue of INR318 million in FY18 (FY17: INR412 million). The decline in revenue was because of lower receipt of orders. The company booked revenue of INR252.4 million as of November 2018. Operating EBITDA margins fell to 0.1% in FY18 (FY17: 1.2%, FY16: 1.3%) owing to volatility in the raw material prices. The ratings remain constrained by SGSPL's weak credit metrics as indicated by interest coverage (operating EBITDA/gross interest expense) of 0.2x in FY18 (FY17: 0.52x) and net financial leverage (total adjusted net debt/operating EBITDA) of 71.2x (18.75x). The deterioration in the credit metrics was owing to low EBITDA of INR0.4 million in FY18 (FY17: INR5 million). The ratings are also constrained by intense competition in the plastic packaging industry. However, the ratings benefit from the promoters' experience of over three decades in the plastic packaging industry, leading to longstanding relationships with customers and suppliers. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Incorporated on November 14, 2006 and promoted by Mr. Sunil Ranasaria and Mr. Sajjan Ranasaria, SGSPL is engaged in the trading of plastic granules. SHRINET AND SHANDILYA: CRISIL Assigns B+ Rating to INR1.5cr Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Shrinet and Shandilya Construction Private Limited (SASCPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Bank Guarantee 1.5 CRISIL B+/Stable (Assigned) Bank Guarantee 25.0 CRISIL A4 (Assigned) Overdraft 2.0 CRISIL A4 (Assigned) The ratings reflect the modest scale of SASCPL's operations in the intensely competitive civil construction industry and large working capital requirement. These weaknesses are partially offset by the experience of the promoter and a moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations amid intense competition: Intense competition may continue to constrain scalability, pricing power, and profitability. Furthermore, revenue is entirely tender based and thus highly susceptible to the quantum of tenders floated by the customer and the ability to successfully bid for it. Revenue was modest at INR9.6 crore in fiscal 2018. * Large working capital requirement: Operations are likely to remain working capital intensive over the medium term. Gross current assets were around 450 days as on March 31, 2018, driven by high debtors (which contains the retention money also). Strengths * Experience of the promoter: Benefits from the promoter's experience of over two decades, his strong understanding of local market dynamics, and healthy relations with customers and suppliers should continue to support the business. * Moderate financial risk profile: Financial risk profile is likely to remain adequate over the medium term. Gearing was 0.37 time as on March 31, 2018, due to the absence of any long-term maturing debt; also, networth was INR22.17 crore. Debt protection metrics were comfortable, with net cash accrual to total debt and interest coverage ratios of 0.09 time and 1.8 times, respectively, in fiscal 2018. Outlook: Stable CRISIL believes SASCPL will continue to benefit from the experience of the promoter. The outlook may be revised to 'Positive' if substantial and sustainable increase in revenue and profitability strengthens the financial risk profile. Conversely, the outlook may be revised to 'Negative' if steep decline in revenue and profitability, delays in project execution or in receiving payment, or any large, debt-funded capital expenditure weakens liquidity. Liquidity Utilisation -- averaging around 97% for the 12 months through October 2018 -- is expected to remain high over the medium term due to large working capital requirement. Nil maturing debt over the medium term enables the entire cash accrual (projected at over INR0.75 crore and INR0.82 crore for fiscals 2019 and 2020, respectively) to be used as working capital. The promoter is expected to continue extending timely, need-based unsecured loans (outstanding at INR5.77 crore as on March 31, 2018) to aid financial flexibility. The ratio was 1.09 times as on March 31, 2018, due to high advances from customers. SASCPL, incorporated in 1998 by Mr Sanjay Singh, is a Ghaziabad (Uttar Pradesh)-based company that provides engineering, procurement and construction of solar products & equipment, and solar panels. SJS BIOTECH: CARE Reaffirms B+ Rating on INR12.60cr LT Loan ----------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of SJS Biotech International (SJS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 12.60 CARE B+; Stable Reaffirmed Long/Short-term Bank Facilities 0.50 CARE B+; Stable/CARE A4 Reaffirmed Detailed Rational and key rating drivers The ratings assigned to the bank facilities of SJS Biotech International (SJS) continue to remain constrained on account of its short track record and small scale of operations, leveraged capital structure. The ratings are further constraint on account of working capital intensive nature of operations and highly competitive nature of the industry. The ratings, however continue to derive comfort from experienced partners, moderate profitability margins and moderate coverage indicators. Going forward; ability of the company to increase its scale of operations in the competitive market while registering improvement in its profitability margins alongside effective management of working capital requirement shall be the key rating sensitivity. Detailed description of key rating drivers Key rating weakness Short track record and small scale of operations: The firm commenced operations in January 2017 and FY18 was the first full year of operations for the firm. The scale of operations remained small as marked by total operating income and gross cash accruals of INR7.29 crore and INR1.62 crore respectively during FY18 (refers to the period April 1 to March 31). The small scale limits the firm's financial flexibility in times of stress and deprives it from scale benefits. Further, firm achieved a total operating income of INR7.50 crore in 8MFY19 (refers to the period April 01 to November 30). Leveraged capital structure: The capital structure of the firm continues to remain leveraged, owing to CAPEX done in the past coupled with high dependence on the external borrowings to meet its working capital requirements as marked by overall gearing ratio of 1.91x as on March 31, 2018. Working capital intensive nature of operations: The business model entails involvement of high working capital requirement. The firm has as inventory holding period of around 7-8 months as the firm mainly maintains inventory in the form of raw material for smooth production process and finished goods to meet the immediate needs of the customers. Further the firm allows credit period of around 1 month to its customers and receives a credit period of 2-3 months from its creditors. Consequently, it needs to rely majorly on working capital borrowings to fund its day-do- day operations, thereby resulting in higher utilization of working capital limit. The average working capital borrowings stood fully utilized for the past 12 months period ending November 30, 2018. Highly competitive nature of the industry: SJS Biotech continues to operate in a highly competitive industry wherein there is presence of a large number of players in the unorganized and organized sectors. There are number of small and regional players catering to the same market which has limited the bargaining power of the firm and has exerted pressure on its margins. Key rating strengths Experienced partners: Mr. Deepak Singla, Mr. Sunil Kumar Jindal, Mr. Nilesh Singla, Mr. Pankaj Singla and Mr. Praveen Kumar Garg collectively look after overall operations of the firm. All the five partners have an experience of around two decades in the manufacturing industry through their association with Shiv Jyoti Creators Private Ltd. and Shivalik Design Private Ltd. Moderate profitability margins and coverage indicators: The PBILDT margin of the firm continues to remain moderate and stood at 36.72% in FY18; however due to high depreciation and interest cost the PAT margin stood at 0.17% in FY18. Owing to moderate PBILDT the coverage indicators of the firm continues to remain moderate as marked by interest coverage ratio and total debt to GCA of 2.54x and 8.41x respectively for FY18. Delhi based, SJS Biotech International was established in October 2014 as a partnership firm and is currently being managed by Mr. Deepak Singla, Mr. Sunil Kumar Jindal, Mr. Nilesh Singla, Mr. Pankaj Singla and Mr. Praveen Kumar Garg; sharing profits and losses in the ratio of 6:4:4:3:3. The firm is engaged in manufacturing of neem extracts azadiracht in such as neem oil, neem cake, neem based formulation etc. at its manufacturing facility located in Haryana. The product manufactured by SJS Biotech is sold PAN India. The main raw material for the firm is solvents and neem seeds and the same is procured from dealers locally. SKD REALTY: ICRA Maintains B+ Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA said the rating for the INR25.00 crore fund based bank facility of SKD Realty LLP continues to remain in 'Issuer Not Co- operating' category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT CO-OPERATING". ICRA had earlier moved the rating of the company to the 'ISSUER NOT CO-OPERATING' category due to non- submission of requisite information by the entity to undertake surveillance of the ratings. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund- 25.00 [ICRA]B+(Stable); ISSUER NOT based limit- COOPERATING Rating continues Term loan to remain in 'Issuer Not Co- operating' Category As part of its process and in accordance with its rating agreement with SKD, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. The rating is based on limited information on the entity's performance since the time it was last rated in October 2017. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the ratings do not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. SKD Realty LLP was incorporated in 2011 as a partnership firm and was later converted into a limited liability partnership (LLP) firm in 2014. It is engaged in construction of residential project in Mira Road (Thane). The firm is promoted by partners having extensive experience in the field of real estate construction in Mumbai and adjoining areas. The group has experience of more than 20 years in the real estate construction business in the Mumbai region. SRI SAI BABA: ICRA Assigns 'B' Rating to INR10cr LT Loan -------------------------------------------------------- ICRA has assigned [ICRA]B (Stable) ratings to the bank facilities of Sri Sai Baba Agro Commodities (SSBAC). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term- Unallocated 10.00 [ICRA]B (Stable); Assigned Rationale The rating considers the nascent stages of the project as SSBAC's is yet to commence and notes that the financial closure is yet to be achieved. The rating is constrained by the highly fragmented nature of the ginning industry and commoditised product, leading to low pricing power. The rating also factors in the exposure of firm's revenues and profitability to fluctuations in the prices of raw material, cotton, which is an agro-commodity, and its prices are subject to seasonality and crop harvest. The rating also considers the risks associated with partnership nature of firm. The rating, however, favorably factors in the extensive experience of the partners spanning over four decades in the cotton ginning industry resulting in the established customer and supplier base of the firm. ICRA notes that the firm plans to outsource ginning activity to its group companies limiting capital expenditure. The rating also considers the location advantage with firm's proximity to cotton growing areas of Adilabad, providing logistic advantage. Outlook: Stable ICRA believes that SSBAC will continue to benefit from extensive experience of its partners in the ginning industry. The outlook may be revised to Positive if timely commencement and healthy ramp-up of operations with healthy profitability improves its financial risk profile. The outlook might be revised to Negative if financial closure is delayed or any significant debt-funded capital expenditure, or lower-than-expected cash accruals, or stretched working capital cycle weakens its capital structure and liquidity position. Key rating drivers Credit strengths Long experience of partners: SSBAC is promoted be Mr. Rajiv Kumar Mittal who has extensive experience in cotton ginning and trading industry. The partners operate other companies engaged in the similar line of business leading to established supplier base and sales network. Moreover, SSBAC would outsource ginning activity to one of its group companies limiting its capital outlay. Locational advantage: The firm's unit is located near major cotton growing areas of Telangana resulting in easy availability of raw materials and savings in transportation costs. Credit challenges Nascent stages of project: The firm's operation is yet to commence, and the financial closure is yet to be achieved. The firm was constituted as a partnership firm in June 2018 and expecting to commence operations in April 2019. The timely commencement and healthy ramp-up of operations remains crucial. Intense competition and fragmentation in the industry given the low entry barriers: The firm will face stiff competition from organised and unorganised players limiting its pricing flexibility and bargaining power. Profitability exposed to fluctuation in raw material prices which is subject to seasonality and Government regulations: The firm's profit margins are expected to be exposed to the fluctuation in raw material prices, which depend upon factors like seasonality, monsoon condition, international demand and supply situation, export policy etc. Further, it will be exposed to the regulatory risks, as prices are decided through the minimum support price, set by the Government. Inherent risks being a partnership firm: Being a partnership firm, it is vulnerable to capital withdrawals by the partners. Liquidity Position The firm's operations are yet to commence and working capital limits are yet to sanctioned. Sai Baba Agro Commodities (SBAC) was constituted as a partnership firm in June 2018 and expecting to commence operations in April 2019. The office of the firm is located at Adilabad, Telangana and will be engaged in ginning and trading of cotton seed, lint and bales. The firm will be outsourcing the cotton ginning to the group company. The partners of the firm possess more than two decades of experience in cotton trading business. SRI SATHYA: CRISIL Reaffirms 'B' Rating on INR3cr Cash Loan ----------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Sri Sathya Exim (SSE). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL B/Stable (Reaffirmed) Letter of Credit 5 CRISIL A4 (Reaffirmed) The ratings continue to reflect the firm's small scale of operations in the intense competitive metallurgical industry and its below-average financial risk profile. These weaknesses are partially offset by the extensive experience of the proprietor in the metallurgical industry. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations in the intensely competitive metallurgical industry: The firm has a small scale of operations as reflected by the revenue of INR12.39 crore in fiscal 2018. The operations is constrained by intense competition in the metallurgical industry. The industry has low entry barriers due to minimal capital requirement, resulting in presence of several unorganized players. * Below-average financial risk profile: The financial risk profile is constrained by small net worth of INR4.09 crore as on March 31, 2018. Debt protection metrics remains weak, with interest coverage and net cash accrual to total debt ratio of 2.5 times and 0.99 time respectively in fiscal 2018. Strength * Extensive industry experience of the proprietor: SSE proprietor Mr Sathya Seelan has experience over a decade in the industry and has built healthy relationships with clients. Outlook: Stable CRISIL believes SSE will continue to benefit from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if revenue and profitability increase substantially, thus strengthening financial risk profile. The outlook may be revised to 'Negative' if financial risk profile weakens due to low cash accrual or if large debt-funded capital expenditure constrains liquidity. Liquidity Profile The liquidity profile was moderate. The bank limits utilization was low at around 15% in the last twelve months ending October 2018. The firm has reported cash accruals of around INR 0.20 crores with no repayment obligations. Further, the cash accruals is expected to increase in the forthcoming years. Setup in 2007 by Mr Sathya Seelan, SSE processes and trades in iron and steel scrap. Its unit is in Gumidipoondi (Tamil Nadu). STARBIGBLOC BUILDING: Ind-Ra Assigns BB- Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Starbigbloc Building Material Private Limited (Starbigbloc) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR140 mil. Term loan due on March 2022 assigned with IND BB-/Stable rating; and -- INR35 mil. Fund-based facility assigned with IND BB- /Stable/IND A4+ rating. Analytical Approach: Ind-Ra has taken a consolidated view of Starbigbloc and its parent Bigbloc Construction Limited (Bigblog) on account of the strong operational, financial, legal and strategic linkages between them. Both entities have common directors, and operate in the same line of business. Bigbloc has extended a corporate guarantee towards Starbigbloc's bank debt and an unsecured loan which will be used mainly for meeting the working capital requirement. KEY RATING DRIVERS The ratings reflect the group's small scale of operations on account of intense competition in autoclaved aerated concrete (AAC) block manufacturing business. In FY18, consolidated revenue increased to INR734 million (FY17: INR713 million) on account of higher revenue contribution from Bigblog, led by an improvement in realization. However, on a standalone basis, Starbigbloc's revenue declined to INR7 million in FY18 (FY17: INR27 million) on account of lower execution of orders. During 1HFY19, the group's revenue was INR502 million. Ind-Ra expects the revenue to increase over the medium term on account of higher order execution from Starbigbloc. The group's return on capital was 9% in FY18 (FY17: 7%) and EBITDA margin was modest at 14.8% (12.0%) on account of better absorption of fixed costs. The ratings continue to factor in Starbigbloc's modest credit metrics as indicated by net leverage (total adjusted debt/operating EBITDA) of 5.5x in FY18 (FY17: 5.8x) and interest coverage (operating EBITDA/gross interest expense) was 1.9x (1.6x). The improvement in metrics was attributed to an increase in absolute EBITDA (FY18: INR108 million; FY17: INR86 million). Despite the increase in EBITDA, the consolidated credit metrics remain modest on account of high debt levels. The ratings are constrained by the company's tight liquidity position as reflected by 94% average use of the fund-based facility for the 12 months ended December 2018. At FYE18, the group had a cash balance of INR18 million, an unutilized credit line of INR3 million and a term loan of INR267 million, which will be repaid fully in March 2022. However, the ratings are supported by Starbigbloc's promoter's a decade long experience in the AAC block manufacturing business. RATING SENSITIVITIES Positive: A substantial improvement in the revenue and a rise in the operating profitability, leading to a sustained improvement in the credit metrics will be positive for the ratings. Negative: Weakening of support from the parent and a substantial decline in the revenue, leading to deterioration in the credit metrics on a sustained basis, would lead to a negative rating action. COMPANY PROFILE Bigbloc manufactures AAC blocks at its manufacturing unit in Umargaon. In 2016, the company demerged itself from Mohit Industries Limited. In September 2018, the company acquired Ahmedabad-based Hiltop Concrete Private Limited. In November 2018, the Hiltop Concrete's name was changed to Starbigbloc. TARU AGENCIES: CRISIL Assigns B+ Rating to INR10cr LT Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facility of Taru Agencies And Investments Private Limited (Taru Agencies). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 10 CRISIL B+/Stable (Assigned) The rating factors in the company's small scale of operation and vulnerable asset quality. These weaknesses are partially offset by the moderate capital position, and healthy earnings. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operation: Despite being in business for nearly a decade and half, Taru Agencies is a small-sized non-banking finance company (NBFC), with loan asset under management of INR6.8 crore as on October 31, 2018. It has been operating in the commercial vehicle financing business since 2002, however operations remain small with only one branch in Delhi and business being sourced through direct selling agents against commission. * Vulnerable asset quality with modest credit profile of borrowers Low delinquencies with 90+ dpd of 3.2% and gross non-performing assets (NPA) of 1.6% were maintained as on March 31, 2018. The company finances used three-wheeler (loader/passenger), light commercial vehicles (mainly loader) and E-rickshaws. The loans are mainly given to transport operators, who are generally from the low income and self-employed segment with modest credit profile. Any pressure on their cash flow due to unforeseen situations may affect their repayment capacity, which may lead to increased delinquencies. Hence the ability to maintain asset quality will be a key monitorable. Strengths * Moderate capital position: Networth was INR4.0 crore as on October 31, 2018 increased from INR2.5 crore as on March 31, 2017, while gearing went up marginally to 0.8 time from 0.4 time. There was equity infusion of INR57 lakh in fiscal 2017 and the first half of fiscal 2018. Gearing is expected to increase to around 2 times over the medium term. * Healthy earnings profile: The return on assets and return on networth stood high at 10.9% and 22.2%, respectively, for the seven months ended October 31, 2018. Profitability is high due to comparatively high yielding products such as commercial vehicles. Interest rates ranging from 18-26% is charged. With low gearing, net interest margin is high at 13%. Operating cost is low at 3.1% as business is conducted through only one branch. Outlook: Stable CRISIL believes Taru Agencies' scale of operation will remain small and its asset quality will continue to be vulnerable over the medium term. The outlook may be revised to 'Positive' if scale of operation increases while capitalisation and asset quality are maintained. The outlook may be revised to 'Negative' if weakening of asset quality or profitability adversely impacts capitalisation. Liquidity The Company's liquidity is adequate with the estimated monthly inflows being sufficient to meet the outflows for the next few months. As on October 31, 2018, company has cash and bank balance of INR15 lakhs. The liquidity risk is mitigated by funding support from promoters in the form of unsecured loans which stood at INR2 crore as on October 31, 2018. Based in Delhi, Taru Agencies was incorporated as NBFC in 1987. The promoters, Mr. Sanjay Virmani has relationship with more than 20 dealers in Delhi and adjoining areas with more than 15 years of experience in dealership of used commercial vehicles. Mr. Virmani & family also have three other group companies, which are engaged in dealership of automobiles. TEESTA URJA: ICRA Reaffirms D Rating on INR4,096.49cr Term Loan --------------------------------------------------------------- ICRA has reaffirmed the ratings on the bank facilities of Teesta Urja Limited (TUL) at [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- Term Loans 4,096.49 [ICRA]D; Reaffirmed Rationale The rating action continues to take into account the continued delays in debt servicing by TUL, which has developed the 1200-MW Teesta III hydro-power project in Sikkim, on account of significant under-recovery of costs owing to delay in operationalisation of power purchase agreements (PPAs) and high repayment obligations. Though the project was commissioned in February 2017, and Central Electricity Regulatory Commission (CERC) has issued an interim order allowing provisional tariff, project has commenced the sale of power to only one offtaker under its long-term PPAs. As per the PPA signed with PTC India Limited (PTC), 70% of the power is to be sold on a long-term basis. As a result, the power being generated is being sold in the power exchange/short-term bilateral transactions, which has resulted in subdued cash flows for the company. Significant risks remain pertaining to the approval of capital cost by the regulator, considering the substantial time and cost overruns witnessed in the project. These will ultimately have a bearing on the tariff, which is to be determined on a cost-plus basis and on the affordability/attractiveness of the power so generated. The final debt-to-equity mix is 79:21 has led to high financial risk in the project. The company has a strong parentage as the Government of Sikkim (GoS) holds ~60% stake. It is also supported by other strong investors such as PTC and has NHPC Limited as the project management consultant. Firm offtake arrangements for 100% power and presence of deemed generation clauses provide cushion against hydrological and silting risks. Going forward, the improvement in debt servicing due to approval of capital cost, determination of final tariff, commencement of power offtake and restructure of debt obligations will be the key rating sensitivities. Key rating drivers Credit strengths Strong parentage and experienced management: GoS holds ~60% stake and has been instrumental in bringing in the equity capital for completion of the project. NHPC Ltd. is the project management consultant, which is another source of comfort. Commercial operations of project on track: Funding and execution risks have reduced post commissioning of the project in February 2017. Credit challenges Delays in debt servicing: The delay in interest during construction at the pre-commissioning phase was on account of delayed sanction of cost overrun funds. However, high debt funding and inadequate tariff realisation has resulted in continued delays post commissioning as well. Power offtake under long-term PPA yet to start: Even though TUL has a firm PPA for its entire generation capacity, the state discoms (barring UP discom) did not commence procurement of power, which in turn resulted in inadequate cash accruals. Further, uncertainty regarding the quantum of project cost approved by the regulator poses challenges for the company to generate sufficient cash flows to service its debt obligations. Liquidity position The company's liquidity position remains weak with inadequate cash flows (led by under-recovery of tariff and weak offtake) available for debt servicing and lack of fund infusion from promoters. The debt raised for the infrastructure project assets of SPV owned by the rated holding company is non-recourse to the latter; hence, ICRA has not consolidated the debt in these SPVs; however, in line with its limited consolidation approach, ICRA has factored in the rated entity's support to fund the equity component of the investment in these infrastructure projects, any cost overruns and debt servicing support in the initial stage of operations TUL is a special purpose vehicle (SPV) incorporated on March 11, 2005 for the development of the 1,200-MW Teesta Stage III hydroelectric electric project. The company has become a GoS enterprise with the state government holding a 60.08% stake. Other investors in the company include Asian Genco Pte Limited (24.98%), PTC India Limited (PTC; 5.62%), Indus Clean Energy (India) Private Limited (5.18%), Athena Projects Private Limited (2.72%) and APPL Power Private Limited (1.42%). All six units were commissioned in February 2017 and the budgeted project cost is INR13,965 crore. TUL has signed a PPA for sale of 100% of saleable power with PTC, which will sell 70% of the total generation on a long-term basis and the rest on a short-term basis. In FY2018, the company reported a net loss of INR701.5 crore on an operating income (OI) of INR1305.8 crore compared with a net loss of INR57.5 crore on an OI of INR44.5 crore in the previous year. TRACK INNOVATIONS: ICRA Reaffirms B+ Rating on INR15cr Loan ----------------------------------------------------------- ICRA has reaffirmed the ratings on the bank facilities of Track Innovations (India) Private Limited (TIPL) at [ICRA]B+ (Stable)/ [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term: Fund 15.00 [ICRA]B+ (Stable); Based/Cash Credit reaffirmed Long-term: Fund Based/Term Loan 0.09 [ICRA]B+ (Stable); Reaffirmed Short-term: Non- Fund Based 2.00 [ICRA]A4; reaffirmed Long-term/ Unallocated 6.91 [ICRA]B+ (Stable); reaffirmed Rationale The rating reaffirmation continues to factor in the directors' extensive experience in the concrete sleeper-manufacturing industry. The ratings also derive comfort from the company's established relationships with the Indian Railways (IR) and TIPL's stature as one of the approved vendors by the Research Designs & Standards Organisation (RDSO), which authorises it to participate in tenders for the IR contracts. Notably, this provides an effective entry barrier for new entrants in the industry. ICRA also notes the satisfactory current order book position and strong industry growth prospects with increased spending by the Government on Railway infrastructure. The ratings, however, are constrained by the substantial decline in the company's operating margins in FY2018. The ratings are also constrained by its moderate financial risk characterised by relatively high gearing and moderate debt protection metrics in FY2018. Further, while ICRA notes the increase in TIPL's revenues in FY2018, the company continues to operate on a moderate scale. The ratings also take into account the company's heavy dependence on orders from Northern Railways, which accounts for ~95% of its total revenue, making profitability susceptible to variations in order inflows. Outlook: Stable ICRA expects TIPL to continue to benefit from the extensive experience of its promoters in the industry and TIPL's stature as one of the approved vendors by the RDSO. The outlook may be revised to Positive if substantial growth in revenues and profitability, and improvement in coverage indicators strengthen the financial risk profile. The outlook may be revised to Negative if the cash accrual is lower than expected, or if any major capital expenditure is incurred, or if a stretch in the working capital cycle weakens liquidity Key rating drivers Credit strengths Established business track record and extensive promoters' experience: TIPL has been in the concrete sleeper manufacturing industry since 1981. The promoters have around three decades of experience in the current line of business and have been able to establish strong relationship with the IR. Association with Northern Railways reduces counterparty risk: TIPL is approved by the RDSO, Ministry of Railways, Government of India for manufacture and supply of pre-stressed concrete sleepers. This provides an effective entry barrier for any new entrant to the industry. Favourable demand outlook of rail products driven by substantial growth prospects of IR infrastructure: The demand for railway track components and fittings is expected to grow, going forward, driven by the demand from Indian Railways' expansion plans as well as replacement demand. Credit challenges Moderate scale of operations: Despite its operational track record of over 30 years and the turnover increase in FY2018, the company's business scale remains moderate as reflected in turnover of ~Rs. 49.44 crore in FY2018. Furthermore, TIPL's revenues remain dependent on tenders released by the NR, exposing it to variation in order inflows. Moderate financial risk profile: Due to low order inflows during the past few years which resulted in low capacity utilisation, the fixed costs remained unabsorbed. This in turn impacted the operating profit margin, which declined to 5.37% in FY2017 from 6.13% in FY2016. The margins declined further in FY2018 due to an increase in raw material expenses which the company could not pass on to its customers entirely. The net profit also remained low over the years. This in turn resulted in subdued coverage indicators. Exposure to raw material price risk; lowest bidder-based bidding system for awarding contracts in most of the railway tenders limit overall profitability: Despite the presence of price- variation clause in the orders received from the IR, the company's profitability remains exposed to major fluctuation in raw material prices, primarily cement and steel wires which the company is unable to pass on entirely. In addition, TIPL derives nearly 90% of its revenues from the IR, wherein the orders are allotted based on the lowest bidder (L-1) bidding system, resulting in aggressive bidding by the payers which limits the profitability of all players to an extent. Liquidity position The company has a total of INR15 crore of sanctioned cash credit limits and INR2 crore of non-fund based limits. Its liquidity position remains adequate with sufficient cushion available (utilisation of 30% during the 10-month period ended September 2018) in the form of unutilised sanctioned working capital limits. The company does not have any capex plans or heavy repayments due going forward. Incorporated in 1989, Track Innovations (India) Private Limited (TIPL) manufactures pre-stressed concrete monoblock line sleepers and other special types of sleepers. TIPL mainly caters to the IR, Northern Railway (NR) zone, under a contract agreement and is approved by the Research Designs and Standards Organization (RDSO), Ministry of Railways, Government of India to manufacture the same. In the recent years, the company has added a few private sector companies to its client list. The company's manufacturing facility is located in the Railway Colony of Chandigarh. VASANT COTTON: ICRA Reaffirms B+ Rating on INR5.50cr Loan --------------------------------------------------------- ICRA has reaffirmed the ratings on the bank facilities of Vasant Cotton (VC) at [ICRA]B+(Stable). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- Term Loan 1.24 [ICRA]B+(Stable) Reaffirmed Fund-based- Working Capital Facilities 5.50 [ICRA]B+(Stable) Reaffirmed Rationale The rating reaffirmation continues to remain constrained by the firm's weak financial risk profile, characterised by low profit margins, moderate capital structure and weak coverage indicators. The rating also continues to factor in the vulnerability of the firm's profitability to adverse fluctuations in raw material prices (raw cotton), considering the inherently low value-added ginning business and the stiff industry competition. Further, its operations also remain exposed to regulatory risks with regard to the minimum support price (MSP), which is set by the Government. ICRA also notes the potential adverse impact on the firm's net worth and the gearing level in case of any substantial withdrawal from the capital accounts, given its constitution as a partnership concern. The rating, however, continues to favorably factor in the extensive experience of the partners in the cotton industry and the proximity of the firm's manufacturing plant to raw material sources. Outlook: Stable ICRA believes Vasant Cotton will continue to benefit from the past experience of its partners in the cotton industry. The outlook may be revised to Positive if substantial growth in revenue and profitability leads to higher-than-expected cash accruals and/or substantial capital infusion improves its capital structure. The outlook may be revised to Negative if substantial decline in scale and profitability leads to inadequate cash accruals, or if any major capital expenditure or capital withdrawal, or stretch in the working capital cycle weakens the capital structure and the liquidity. Key rating drivers Credit strengths Extensive experience of partners in cotton industry: Established in 2014, Vasant Cotton is managed by nine partners, who have extensive experience in the cotton industry through their association with other entities involved in cotton business. The experience of the promoters results in established relationship with customers. Location-specific advantage: The firm benefits in terms of low transportation cost and easy access to raw cotton due to the strategic location of the plant in the Saurashtra region of Gujarat, an area of high cotton acreage and quality cotton crop. Credit challenges Weak financial risk profile characterised by low profitability and weak coverage indicators: The firm's operating income (OI) grew 48% to INR63.88 crore in FY2018 from INR43.29 crore in FY2017. However, its operating margin moderated and continued to remain low at 1.63% in FY2018 compared to 2.05% in FY2017 due to stiff competition and low value-added operations. Consequently, the net profit margin also remained low at 0.66% in FY2018 compared to 0.80% in FY2017. The capital structure continues to remain leveraged with a gearing of 1.53 times as on March 31, 2018, though it improved from 2.37 times as on March 31, 2017. Low profitability and high debt levels resulted in weak debt protection metrics as depicted by the NCA/TD at 9% in FY2018 compared to 7% in FY2017, and Total Debt/OPBDITA at 4.51 times in FY2018 as against 7.66 times in FY2017. Vulnerability of profitability to adverse fluctuations in raw material prices and regulatory changes: The firm's profitability remains exposed to fluctuation in raw material (raw cotton) prices, which depend on various factors such as seasonality, climatic conditions, international demand and supply situations, and export policy. Further, it is also exposed to regulatory risks with regard to the MSP set by the Government. Intense competition and fragmented industry structure: The company faces stiff competition from other small and unorganised players in the industry, given the commoditisation and low-entry barriers, which limit its pricing flexibility and bargaining power with customers, and put pressure on its revenues and margins. Risk associated with partnership constitution: Vasant Cotton, being a partnership firm, is exposed to adverse capital structure risk, wherein any substantial capital withdrawal could negatively impact its net worth and the capital structure. Liquidity position The firm's cash flows remained positive in FY2018, following the reduction in its working capital requirements. The utilisation of the CC limit remained low at 34% from April 2018 to November 2018. The liquidity is expected to remain adequate, supported by undrawn cash credit limits and absence of any major capital expenditure plans in the near to medium term. Vasant Cotton (VC) was established as a partnership firm in 2014 and is involved in cotton ginning and pressing to produce cotton bales and cottonseeds. The manufacturing facility of the firm is located at Aniyari, Rajkot (Gujarat) and is equipped with 24 ginning machines and one pressing machine, having an installed capacity to produce 200 bales per day. The operations of the firm are managed by Mr. Mahesh Likhiya and eight other partners, who have extensive experience in the cotton industry. In FY2018, the firm reported a net profit of INR0.42 crore on an OI of INR63.88 crore, as compared to a net profit of INR0.35 crore on an OI of INR43.29 crore in the previous year. VINTAGE HOME: CARE Reaffirms 'D' Rating on INR5.75cr LT Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Vintage Home Fashions (VHF), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.75 CARE D Reaffirmed and removal Facilities from Issuer not cooperating Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of VHF takes into consideration ongoing delays in debt servicing by the firm due to its stretched liquidity position. The firm has small scale of operations, weak solvency position & liquidity position, presence in highly competitive nature of the industry and proprietorship nature of constitution. The rating, however, takes cognizance of experienced proprietor. Going forward, the ability of VHF to increase its scale of operations while improving its liquidity position will be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: There are instances of over utilization of cash credit limit which is settled within 40 days. The delays are on account of weak liquidity as the firm is unable to generate sufficient funds on timely manner leading to cash flow mismatches. Small scale of operations: The total operating income of VHF declined from INR33.15 crore in FY17 (refers to the period April 01 to March 31) to INR22.56 crore in FY18 on account of lower quantity sold owing to lower orders received. The small scale of operations limits the firm's financial flexibility in times of stress and deprives it from scale benefits. Furthermore, the firm reported total operating income of INR12.00 crore in 8MFY19 (Provisional). Weak solvency position & liquidity position: The capital structure of the firm stood leveraged with overall gearing ratio of 6.55x as on March 31, 2018. The same, however, improved from 14.05x as on March 31, 2017 on account of increase in net worth base of the firm owing to infusion of funds by proprietor amounting to INR0.38 crore and also due to accretion of profits into it. The debt coverage indicators continued to remain weak characterized by interest coverage ratio of 1.51x in FY18 and total debt to GCA of 19.66x for FY18. The liquidity position of the firm has remained weak with quick ratio of 0.30x as on March 31, 2018, however, current ratio stood moderate at 1.46x as on March 31, 2018. The firm had free cash and bank balance of INR0.02 crore as on March 31, 2018. The average operating cycle of the firm stood elongated at 136 days for FY18. The firm manufactures different types of home furnishing products such as curtains, carpets, quilts, blankets, etc. and therefore it needs to maintain sufficient stock of different forms of raw materials for smooth production process as well as stock of finished goods which resulted in high average inventory period for FY18. Procurement of higher raw material inventory in the month of March, 2018 resulted in higher inventory period for FY18 and consequently, higher payment period as well. Furthermore, the firm extends a liberal credit period of around two-three months to its customers due to its presence in highly competitive industry which resulted in collection period of 67 days for FY18. As per banker, the cash credit limit remained fully utilized for the last 12 months period ended November, 2018. Intense competition: The home furnishing products industry is characterized by numerous small players and is concentrated in the northern part of India. Low investment requirement makes the industry highly competitive. Smaller companies in general are more vulnerable to intense competition due to their limited pricing flexibility, which constrains their profitability as compared to larger companies who have better efficiencies and pricing power considering their scale of operations. VHF also faces stiff competition from cheaper imports from China, Bangladesh and Vietnam in the same product segment. Proprietorship nature of constitution: VHF's constitution as a proprietorship firm has the inherent risk of possibility of withdrawal of the proprietors' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of proprietor. Key Rating Strengths Experienced proprietor: VHF is a proprietorship firm being managed by Mr. Puneet Chugh. Mr. Puneet Chugh has a total work experience of more than one and a half decades which he has gained through his association with VHF only. Furthermore, the proprietor is supported by experienced team having varied experience in the field of marketing and finance aspects of business. VHF was established in April 1999 as a proprietorship firm by Mr Puneet Chugh. The firm is engaged in the manufacturing of textile home furnishing products which includes bed sheets, curtains, quilts, blankets, carpets, etc, at its manufacturing unit located in Panipat, Haryana. The firm has an installed capacity of 85 lakh units per annum as on March 31, 2018. VHF sells its finished products under its own brand name 'Blanc' to the online sales portals including Naaptol Online, Best Deal TV, etc. and also to wholesalers including reputed customers like Welspun India Limited (rated 'CARE AA; Stable/ CARE A1+'), The Bombay Dyeing and Manufacturing Company Limited. The firm has in house facility of printing, dyeing and designing of furnishing products. ==================== N E W Z E A L A N D ==================== TARATAHI AGRICULTURAL: SIT Keen on Taking Over Telford Campus ------------------------------------------------------------- https://www.stuff.co.nz/southland-times/news/109802355/sit- provides-hope-in-a-bleak-situation-for-telford Mary-Jo Tohill at Stuff.co.nz reports that the Southern Institute of Technology (SIT) is providing a ray of hope for Telford at Balclutha, with staff pay to be suspended across the Taratahi Agricultural Training Centre campuses from Jan. 11. Stuff relates that Tertiary Education Union president Sandra Grey confirmed that Wairarapa-based Taratahi, which went into interim liquidation before Christmas because of a $23 million debt, was broke and unable to pay salaries. Staff pay across all the Taratahi campuses, including Telford, would be suspended while liquidators continued to assess the troubled institute's assets and discussions with a potential new tertiary provider continued, according to the report. Last month, SIT indicated interest in taking over the south Otago-based campus, the report notes. "SIT is looking to pick it up and we're all working together to make it happen so that students, and employers don't miss out," Stuff quotes Ms. Grey as saying. This was confirmed by chief executive Penny Simmonds on Jan. 8, the report states. She would not comment on the proposed arrangement but said "SIT is very mindful of the uncertainty for Taratahi and Telford students and we are keeping in touch with the relevant people and organisations. "However, at this stage we are waiting on direction from the liquidators and are unable to offer any further information," Stuff relays. According to Stuff, Ms. Grey said the situation was "up in the air" because of the Christmas holiday timing, and the union was working with the liquidators and the Government to come up with some solutions for the courses to remain open, even if Taratahi closed, she said. However, in the meantime staff would not be teaching on the campuses, she said. They still had jobs, but would not be getting paid after Jan. 11. "We appreciate this is very hard them, and their families, but we are working hard toward getting resolutions." There were about 70-odd pre-enrolled students at Telford before Christmas, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 21, 2018, BusinessDesk said that the Taratahi Agricultural Training Centre has been placed into interim liquidation at the request of its board of trustees as declining student numbers saw its funding drop faster than it could cut costs. The High Court on Dec. 19 appointed David Ruscoe and Russell Moore of Grant Thornton as interim liquidators after the board sought to protect the position of its staff, students, creditors and other stakeholders, the accounting firm said, BusinessDesk relates. ================= S I N G A P O R E ================= OBIKE SINGAPORE: Creditors Meeting Set for January 23 ----------------------------------------------------- The Strait Times reports that a meeting has been arranged on Jan. 23 for liquidators of the defunct bicycle-rental firm oBike to keep creditors updated on the status of the winding-up. According to the press statement issued by the liquidators on Jan. 9, no payments or distributions will be made at the meeting later this month at the Shine Auditorium at 100 Beach Road #03-01 Shaw Tower at 2:30 p.m., the report relays. According to the Strait Times, creditors can find out more at www.obikedepositholders.com about the meeting, including the necessary forms for them to submit their claims or proxy nomination by Jan. 22 noon in order to attend or vote at the meeting. However, absence from the non-mandatory meeting does not compromise the creditors' rights, and they will be able to submit their claims through the online form or at the liquidators' office even after the creditors' meeting, the report says. Individual users of oBike rental services who are claiming their deposits and would be personally attending the meeting are not required to submit a proxy form. As reported in the Troubled Company Reporter-Asia Pacific on June 26, 2018, the Strait Times said bicycle-sharing operator oBike announced on June 25, 2018, that it will cease operations immediately in Singapore. In a statement shared via its app, oBike cited difficulties in meeting the new requirements and guidelines by the Land Transport Authority (LTA) to curb indiscriminate parking. Headquartered in Singapore, oBike is a stationless bicycle- sharing system with operations in several countries. ********* 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 2019. 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 ***