/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/190301.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 Friday, March 1, 2019, Vol. 22, No. 44 Headlines A U S T R A L I A BESPOKE FORMWORK: Second Creditors' Meeting Set for March 8 BEVEX DISTRIBUTION: Second Creditors' Meeting Set for March 8 CANRAISE PTY: Second Creditors' Meeting Set for March 8 ETA AUSTRALIA III: Moody's Assigns '(P)B2' CFR, Outlook Stable MESOBLAST LIMITED: Capital World Owns 8.5% of Ordinary Shares VIRGIN AUSTRALIA: S&P Rates AUD250MM Senior Unsecured Notes 'B' WES Q: First Creditors' Meeting Set for March 8 C H I N A ADDENTAX GROUP: Financing, Profit Required for Going Concern DATASEA INC: Losses Since Inception Cast Going Concern Doubt GENERAL STEEL: Accumulated Deficit Casts Going Concern Doubt IDEANOMICS: Issues 4.5 Million Shares to SolidOpinion KWG GROUP: Fitch Gives Final BB- Rating on $350MM Notes Due 2023 YANBIAN FUNDE: To File for Bankruptcy Over Tax Default H O N G K O N G AGILE GROUP: S&P Rates New USD Sr. Unsecured Notes 'BB' I N D I A ADARSH NOBLE: CARE Migrates 'D' Rating to Not Cooperating ANIL CONSTRUCTION: Ind-Ra Migrates BB LT Rating to Non-Cooperating ANN PRODUCTS: CARE Lowers Rating on INR9.75cr Loan to 'B' B.V.L. EXPORTS: Ind-Ra Lowers Long Term Issuer Rating to 'B-' BAJAJ ENERGY: CARE Reaffirms D Ratings on INR2,504.65cr Loans CHIDDARWAR CONSTRUCTION: Ind-Ra Keep BB- in Non-Cooperating DHANRAJ RICE: CARE Reaffirms B+ Rating on INR11.27cr LT Loan E.S. KNIT WEAR: Ind-Ra Moves D LT Issuer Ratings to Non-Cooperating EAPRO GLOBAL: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating EMBEE AGRO: CARE Lowers Rating on INR20.33cr LT Loans to B GAURISANKAR ELECTRO: CARE Moves D on INR8cr Debt to Not Cooperating GMR RAJAHMUNDRY: CARE Reaffirms D Ratings on INR2,557.43cr Loans GOAN REAL: CARE Lowers Rating on INR67.86cr LT Loan to D HANUMAN COTTON: CARE Keeps D in INR8cr Loans in Not Cooperating HEENA ENTERPRISES: Ind-Ra Affirms 'BB-' LT Rating on INR180MM Debt INVENTION REALTORS: CARE Maintains D Rating in Not Cooperating JAYPEE INFRATECH: NBCC Bids to Acquire Firm to Complete Housing JET AIRWAYS: Grounds 7 More Planes on Lease Default JORBAT SHILLONG: Ind-Ra Cuts Ratings on INR8.8BB NCDs to B JP AGRO: CARE Moves D on INR10cr LongTerm Loans to D KAYTX INDUSTRIES: CARE Lowers Rating on INR40cr Loan to D LEELA HOTELVENTURE: JM Financial Files Insolvency Case vs. Firm LORD SHIVA: CARE Cuts Ratings on INR19.38cr Loans to D MAHARAJA PAPER: CARE Lowers Rating on INR14.06cr LT Loan to C MAHAVIR FOODS: CARE Maintains 'D' Rating in Not Cooperating MAHAVIR GHAR: CARE Hikes Rating on INR9.0cr LT Loan to B+ METALINK: Ind-Ra Moves B on INR44.5MM Debt to Non-Cooperating MID INDIA: Ind-Ra Rates INR1-Bil. Term Loan Due 2033 'BB+' MOSAVI ENTERPRISES: Ind-Ra Cuts Rating on INR960MM NCDs to 'BB+' NEELKANTH YARN: Ind-Ra Cuts LT Rating on INR187MM Debt to BB NIK-SAN ENGINEERING: Ind-Ra Withdraws BB- on INR101MM Loans NITESH PUNE: CARE Moves 'D' on INR235cr NCD to Not Cooperating OMKAR INFRACON: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating PANACEA BIOTEC: CARE Reaffirms D Rating on INR1,021.52cr Loans PARADISE PROPERTIES: CARE Cuts Rating on INR25.60cr Loan to D R.S. CORP: Ind-Ra Gives BB- LT Rating on INR32MM Debt R.S. GREEN: CARE Moves D Rating to Not Cooperating Category RAVIRAJ HI-TECH: CARE Lowers Rating on INR15.47cr Loan to D RRR CONSTRUCTIONS: Ind-Ra Migrates BB LT Rating to Non-Cooperating SEAWAYS SHIPPING: Ind-Ra Lowers Long Term Issuer Rating to 'BB+' SHRADHA AGENCIES: CARE Moves 'D' on INR28cr Loans to NonCooperating SHREE PARASHNATH: CARE Moves D Ratings to Not Cooperating SHRI RAM: CARE Lowers Rating on INR6.05cr LT Loan to D SIDHI VINAYAK: CARE Maintains 'D' Rating in Not Cooperating SUPREETHA POULTRY: CARE Assigns B+ Rating to INR5.38cr Loan SURAJ CROPSCIENCES: CARE Lowers Rating on INR17.57cr Loan to D THAUSI EXPORTS: CARE Assigns 'D' Rating to INR5cr LT Loan TORQUE AUTOMOTIVE: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating UNIPHOS INTERNATIONAL: Ind-Ra Affirms 'BB+' on INR30MM Loans VIJAYANT AGENCIES: CARE Moves B+ on INR10cr Loans to NonCooperating VIVASWAN HOTELS: CARE Reaffirms 'B' Rating on INR12.34cr Loan N E W Z E A L A N D COOK ISLANDS: S&P Affirms 'B+/B' Sovereign Issuer Credit Ratings P H I L I P P I N E S HANJIN SHIPBUILDING: China Eye on Subic Bay Sets Off Alarms S I N G A P O R E ATTILAN GROUP: Unable to Meet Fund Investor's SGD2 Million Put GS HOLDINGS: Full-Year Net Loss Narrows to SGD3.55MM in 2018 S R I L A N K A PEOPLE'S LEASING: S&P Withdraws 'B' Issuer Credit Ratings - - - - - ================= A U S T R A L I A ================= BESPOKE FORMWORK: Second Creditors' Meeting Set for March 8 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Bespoke Formwork Pty Ltd, formerly trading as Ezytube Pty Limited, has been set for March 8, 2019, at 10:30 a.m. at the offices of Jirsch Sutherland, at Level 27, 259 George Street, in Sydney, New South Wales. 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 March 7, 2019, at 4:00 p.m. Sule Arnautovic and Andrew John Spring of Jirsch Sutherland were appointed as administrators of Bespoke Formwork on Feb. 1, 2018. BEVEX DISTRIBUTION: Second Creditors' Meeting Set for March 8 ------------------------------------------------------------- A second meeting of creditors in the proceedings of Bevex Distribution Pty Ltd has been set for March 8, 2019, at 10:30 a.m. at Suite 1, Level 15, 9 Castlereagh Street, in Sydney, New South Wales. 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 March 7, 2019, at 4:00 p.m. Christopher Damien Darin of Worrells Solvency was appointed as administrator of Bevex Distribution on Feb. 1, 2018. CANRAISE PTY: Second Creditors' Meeting Set for March 8 ------------------------------------------------------- A second meeting of creditors in the proceedings of Canraise Pty Ltd has been set for March 8, 2019, at 11:00 a.m. at the offices of Mackay Goodwin, at Level 2, 10 Bridge 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 March 7, 2019, at 4:00 p.m. Thyge Trafford-Jones and Domenic Calabretta of Mackay Goodwin were appointed as administrators of Canraise Pty on Feb. 1, 2018. ETA AUSTRALIA III: Moody's Assigns '(P)B2' CFR, Outlook Stable -------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B2 corporate family rating to ETA Australia Holdings III Pty Ltd (MYOB). The outlook is stable. At the same time, Moody's has assigned a provisional (P)B2 senior secured rating to MYOB's proposed AUD920 million equivalent first lien senior secured term loan B facility and AUD75 million delayed first lien senior secured term loan B facility. The proceeds of the borrowings will be used to fund the acquisition of MYOB by its financial sponsor, the private equity firm KKR. This is the first time that Moody's has assigned ratings to MYOB. The assignment of a definitive corporate family rating and senior secured term loan ratings is subject to review of final documentation and successful close of the transaction. RATINGS RATIONALE "MYOB's (P)B2 corporate family rating reflects its strong market leading position as a provider of accounting and management software to small and medium-sized enterprises (SMEs) and accounting practices in Australia," says Shawn Xiong, a Moody's Analyst. Moody's views MYOB's market leading position in the accounting practice segment to be particularly important, as accountants, advisers and book keepers are the most important source of referrals for, and retention of, the company's products. This is because SMEs frequently seek and follow their accountants' advice when choosing their own accounting software, whilst accounting practices will most likely recommend the accounting software they currently use, so as to extract work flow efficiencies and erase any potential compatibility issues. "MYOB's high customer retention rate is underpinned by the essential nature of the products provided by MYOB at relatively low cost, along with the potential data transfer and operational issues that may arise from switching software providers," adds Xiong. Moody's also expects the migration of the company's customers to its cloud-based platform will further enhance its customer retention rate and recurring revenue. The rating is constrained by the company's high level of gross debt, with Moody's adjusted debt/EBITDA expected to be around 8.0x-8.5x over the next 12 to 18 months. However, Moody's expects MYOB to gradually de-lever to below 7.0x by FY2021 through a combination of earnings growth and debt reduction as the pace of migration to the cloud accelerates through the next 18-36 months. Additionally, Moody's expects MYOB to be free cash flow negative over the next 12 months as the company accelerates its capital spending on research and development and on sales and marketing of its cloud software products. However, once the company's cost base is stabilized, Moody's expects each incremental new customer will come at minimal cost. This combined with a higher number of paying customers, should enable MYOB to generate strong free cash flow for FY2021. This in turn should assist in reducing its financial leverage. Rating Outlook The stable outlook reflects Moody's expectation that MYOB will maintain its strong market leading position as an accounting and management software provider for SMEs and accounting practices in Australia. As a result, Moody's expects the company will continue to grow its revenue and earnings by migrating its existing customer base to its cloud-based platform, while winning a solid share of new customers and maintaining its high customer retention rate. At the same time, the stable outlook also reflects Moody's expectation that MYOB will apply free cash flow to reduce its debt and that its financial sponsor, KKR, will not pursue aggressive debt-funded acquisitions or capital distributions that result in delays to its de-leveraging. The outlook could change to negative if the company fails to achieve its migration targets, resulting in its de-leveraging trajectory being significantly delayed. Factors that Could Lead to an Upgrade In view of MYOB's current high financial leverage and the time required to migrate its customers to the cloud-based platform, upward pressure on the rating is unlikely over the next 12-24 months. However, positive rating pressure could emerge on the rating should MYOB's migration to the cloud accelerates beyond Moody's expectations, so that its financial leverage is sustained below 5.0x and FCF/debt is above 5%. Factors that Could Lead to a Downgrade Downward rating pressure could emerge if (1) MYOB fails to establish a de-leveraging trend towards 7.0x adj. debt/EBITDA; (2) FCF/debt remains below 3% over the same period; (3) there are significant delays in migrating its users to the cloud; (4) the company's financial sponsor pursues aggressive debt-funded acquisitions and/or capital distributions. ETA Australia Holdings III Pty Ltd (MYOB) is an Australian accounting software company that operates in three main segments, namely (1) SMEs, (2) accounting practices, and (3) enterprise and payments. MESOBLAST LIMITED: Capital World Owns 8.5% of Ordinary Shares ------------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Capital World Investors disclosed that as of Dec. 31, 2018, it beneficially owns 42,591,080 ordinary shares of Mesoblast Limited, which represents 8.5 percent of the 497,365,913 shares believed to be outstanding. A full-text copy of the regulatory filing is available for free at: https://is.gd/UwHmee About Mesoblast Headquartered in Melbourne, Australia, Mesoblast Limited (ASX:MSB; Nasdaq:MESO) -- http://www.mesoblast.com/-- is a global developer of innovative cell-based medicines. The Company has leveraged its proprietary technology platform to establish a broad portfolio of late-stage product candidates with three product candidates in Phase 3 trials - acute graft versus host disease, chronic heart failure and chronic low back pain due to degenerative disc disease. Through a proprietary process, Mesoblast selects rare mesenchymal lineage precursor and stem cells from the bone marrow of healthy adults and creates master cell banks, which can be industrially expanded to produce thousands of doses from each donor that meet stringent release criteria, have lot to lot consistency, and can be used off-the-shelf without the need for tissue matching. Mesoblast has facilities in Melbourne, New York, Singapore and Texas and is listed on the Australian Securities Exchange (MSB) and on the Nasdaq (MESO). Mesoblast reported a net loss attributable to the owners of Mesoblast of US$35.29 million for the year ended June 30, 2018, compared to a net loss attributable to the owners of Mesoblast of US$76.81 million for the year ended June 30, 2017. As of Dec. 31, 2018, the Company had US$688.33 million in total assets, US$163.77 million in total liabilities, and US$524.55 million in total equity. PricewaterhouseCoopers, in Melbourne, Australia, the Company's auditor since 2008, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended June 30, 2018. The auditors noted that the Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. VIRGIN AUSTRALIA: S&P Rates AUD250MM Senior Unsecured Notes 'B' --------------------------------------------------------------- S&P Global Ratings said that it has assigned its 'B' issue rating to Virgin Australia Holdings Ltd.'s (B+/Stable/--) A$250 million five-year senior unsecured note issued under the airline's medium-term note program. S&P said, "We also assigned a recovery rating of '5' to the note. We expect the company to use the proceeds to refinance part of its upcoming US$400 million senior unsecured notes maturing in November 2019." The issue rating is one notch lower than the issuer credit rating, indicating modest recovery prospects (10%-30%, rounded down estimate 15%) for unsecured creditors in the event of a default. This reflects primarily the group's highly encumbered asset base and capital-light business model. S&P notes that Virgin is accumulating unencumbered physical assets, which may improve senior unsecured recovery prospects over time. WES Q: First Creditors' Meeting Set for March 8 ----------------------------------------------- A first meeting of the creditors in the proceedings of Wes Q Pty Ltd will be held on March 8, 2019, at 11:00 a.m. at the offices of SV Partners, at 22 Market Street, in Brisbane, Queensland. Terry Grant van der Velde and Anne Meagher of SV Partners were appointed as administrators of Wes Q on Feb. 26, 2019. ========= C H I N A ========= ADDENTAX GROUP: Financing, Profit Required for Going Concern ------------------------------------------------------------ Addentax Group Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $544,977 on $2,541,803 of revenues for the three months ended Dec. 31, 2018, compared to a net loss of $61,139 on $3,063,211 of revenues for the same period in 2017. At Dec. 31, 2018 the Company had total assets of $4,260,405, total liabilities of $5,811,303, and $1,550,898 in total stockholders' deficit. The Company incurred net loss of $544,977, $61,139, $569,586 and $41,182, during the three months and nine months ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and March 31, 2018, the Company had net current liability of $1,550,898 and $1,104,934, respectively, and a deficit on total equity of $1,550,898 and $1,104,934, respectively. Company President Hong Zhida states, "The ability to continue as a going concern is dependent upon the Company's profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. "The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. In the event that the Company requires additional funding to finance the growth of the Company's current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. "These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is dependent on the Company's ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty." A copy of the Form 10-Q is available at: https://is.gd/K8Jc4L Addentax Group Corp. does not have significant operations. Previously, it was involved in the production of images on multiple surfaces, including glass, leather, plastic, ceramic, textile, and others using three-dimensional sublimation vacuum heat transfer machines. The Company was founded in 2014 and is based in Shenzhen, China. DATASEA INC: Losses Since Inception Cast Going Concern Doubt ------------------------------------------------------------ Datasea Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $379,712 on $0 of revenues for the three months ended Dec. 31, 2018, compared to a net loss of $391,501 on $0 of revenues for the same period in 2017. At Dec. 31, 2018 the Company had total assets of $6,546,986, total liabilities of $95,543, and $6,451,443 in total stockholders' equity. The Company has generated revenues of $0 during three and six months ended December 31, 2018, has a deficit of approximately $4,984,000 at Dec. 31, 2018, and continues to incur significant losses since inception. Management believes that these circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/OrlJUY Datasea Inc., through its subsidiaries, engages in the development and distribution of information technology (IT) systems and network security solutions in the People's Republic of China. The Company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China. GENERAL STEEL: Accumulated Deficit Casts Going Concern Doubt ------------------------------------------------------------ General Steel Holdings, Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $760,393 on $0 of revenue for the three months ended Sep. 30, 2018, compared to a net loss of $840,933 on $0 of revenue for the same period in 2017. At Sep. 30, 2018 the Company had total assets of $16,094,212, total liabilities of $9,403,689, and $6,690,523 in total stockholders' equity. Chief Executive Officer Zuosheng Yu and Chief Financial Officer John Chen state, "The Company had working capital deficit of $9.4 million at September 30, 2018 and working capital deficit $10.6 million at December 31, 2017. In addition, the Company had an accumulated deficit of $1.3 billion at September 30, 2018 and incurred negative cash flows from operating activities totaling $(1.7) million as of September 30, 2018. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent on its ability to obtain financial support and credit guarantee from the Company's shareholders or other available resources from the PRC banks and other financial institutions given the Company's credit history. The Company's consolidated financial statements do not include any adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern." A copy of the Form 10-Q is available at: https://is.gd/ByPKvL General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. General Steel -- http://www.gshi-steel.com/-- has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. IDEANOMICS: Issues 4.5 Million Shares to SolidOpinion ----------------------------------------------------- Ideanomics, Inc. entered into an asset purchase agreement with SolidOpinion, Inc. on Feb. 19, 2019, pursuant to which Ideanomics issued 4,500,000 shares of its common stock in exchange for $2,500,000 and certain intellectual property, including SolidOpinion's CommentsRadar product and technology. The parties agreed that 450,000 of such shares of common stock will be held in escrow in connection with SolidOpinion's indemnity obligations pursuant to the Asset Purchase Agreement. In connection with the transaction, the Company also entered into a piggyback registration rights agreement with SolidOpinion pursuant to which SolidOpinion received piggyback registration rights. About Ideanomics Ideanomics, formerly known as Seven Stars Cloud Group, Inc., seeks to become a next generation fintech company by leveraging blockchain and artificial intelligence technologies. The company is headquartered in New York, NY, and has offices in Hong Kong and Beijing, China. It also has a planned global center for Technology and Innovation in West Hartford, CT, named Fintech Village. Seven Stars reported a net loss of $10.19 million for the year ended Dec. 31, 2017, compared to a net loss of $28.50 million for the year ended Dec. 31, 2016. As of Sept. 30, 2018, Ideanomics had $167.7 million in total assets, $123.1 million in total liabilities, $1.26 million in convertible redeemable preferred stock, and $43.35 million in total equity. B F Borgers CPA PC's report on the consolidated financial statements for the year ended Dec. 31, 2017, contains an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern. The auditors stated that the Company incurred recurring losses from operations, has net current liabilities and an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. KWG GROUP: Fitch Gives Final BB- Rating on $350MM Notes Due 2023 ---------------------------------------------------------------- Fitch Ratings has assigned China-based KWG Group Holdings Limited's (BB-/Stable) USD350 million 7.875% senior notes due 2023 a final rating of 'BB-'. The notes are rated at the same level as KWG's senior unsecured rating because they constitute its direct and senior unsecured obligations. The final rating is in line with the expected rating assigned on February 20, 2019. KWG's ratings are supported by its established homebuilding operations in the city of Guangzhou, strong brand recognition in higher-tier cities across China, consistently high margin, strong liquidity and healthy maturity profile. The ratings are constrained by the small scale of the company's development and investment property business as well as its higher leverage. KEY RATING DRIVERS Diverse Coverage: KWG's land bank is diversified across China's Greater Bay Area, which includes Guangzhou, Foshan and Hong Kong, as well as eastern and northern China. KWG ranked among the top-10 homebuilders by sales in Guangzhou, the capital of Guangdong province, in 2017. The company had 20 million square metres (sq m) of attributable land as at August 2018, spread across 39 cities in mainland China and Hong Kong, which had an average cost of CNY4,800/sq m (excluding Hong Kong) and was sufficient for four to five years of development. KWG has a prudent approach when entering new cities, conducting due diligence for around three years, usually with one or two projects in partnership with reputable local developers. Strong Brand Name: KWG has established strong brand recognition in its core cities by focusing on first-time buyers and upgraders. It appeals to these segments by engaging international architects and designers and setting high building standards. KWG's 2018 pre-sales rose by 72% yoy to CNY65.5 billion after a 29% yoy increase in 2017, with the average selling price reaching CNY16,516/sq m (2017: CNY16,819/sq m). High Margin through Cycles: KWG's EBITDA margin has remained at 30%-35% through various business cycles and is one of the highest among Chinese homebuilders. Protecting the margin is one of KWG's key business objectives and is achieved by maintaining higher-than-average selling prices through consistently high-quality products. The company's experienced project teams also ensure strong execution capability and strict cost control. Moreover, KWG has a low unit land cost of 20%-25% of its average selling price due to its strong foothold in Guangzhou, where land prices have not increased as much as in other tier 1 cities. KWG's EBITDA margin was at 34% in 2017 and Fitch expects the margin to remain above 35% in the next two years as the product mix improves. Worsening Leverage: KWG's leverage on an attributable basis, measured by net debt/adjusted inventory, was around 36% in 1H18 (2017: 34%). Fitch expects leverage to continue increasing gradually, as it is correlated with KWG's contracted sales growth rate and land-bank replenishment strategy. Joint Ventures with Leading Peers: KWG's prudent expansion strategy has created a long record of partnerships with leading industry peers, including Sun Hung Kai Properties Limited (A/Stable), Hongkong Land Holdings Limited, Shimao Property Holdings Limited (BBB-/Stable), China Vanke Co., Ltd. (BBB+/Stable), China Resources Land Ltd (BBB+/Stable) and Guangzhou R&F Properties Co. Ltd. (BB-/Negative). These partnerships helped KWG achieve lower project financing costs, reduce competition in land bidding and improve operational efficiency. Joint venture pre-sales made up 52% of KWG's total attributable pre-sales in 2017 and 47% in 2016. Joint-venture cash flow is well-managed and investments in new joint-venture projects are mainly funded by excess cash from mature joint ventures. Leverage is also lower at the joint-venture level because land premiums are usually funded at the holding-company level and KWG pays construction costs only after cash is collected from pre-sales. DERIVATION SUMMARY KWG's ratings are supported by its established homebuilding operations in Guangzhou and strong higher-tier cities across China, consistently high margin, strong liquidity and healthy maturity profile. KWG has maintained one of the highest margins among Chinese homebuilders throughout the cycle. Its 30%-35% EBITDA margin is comparable with that of Yuzhou Properties Company Limited (BB-/Stable) and Logan Property Holdings Company Limited (BB-/Stable) and some investment-grade peers, such as Poly Developments and Holdings Group Co., Ltd. (BBB+/Stable) and China Jinmao Holdings Group Limited (BBB-/Stable), and is higher than some 'BB' peers, including Future Land Development Holdings Limited (BB/Stable) and CIFI Holdings (Group) Co. Ltd. (BB/Stable). KWG's ratings are constrained by the small scale of its development and investment property business as well as higher leverage, following its high-cost land purchase. Fitch forecasts that KWG's leverage, measured by net debt/adjusted inventory, reached 36% by end-2018 (2017: 34%) due to high land premiums as the company expands. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - EBITDA margin, excluding capitalised interest, to remain stable at 33%-34% in 2018-2020 - Land replenishment rate of 1.5x contracted sales gross floor area (attributable) in 2018-2021 (2016-2017: 1.6x-2.1x) - Leverage to deteriorate to about 36%-38% for 2018-2019 RATING SENSITIVITIES Developments that may individually or collectively, lead to positive rating action include: - EBITDA margin sustained above 30% - Net debt/adjusted inventory sustained below 35% Developments that may individually or collectively, lead to negative rating action include: - EBITDA margin below 25% for a sustained period - Net debt/adjusted inventory above 45% for a sustained period LIQUIDITY Adequate Liquidity: KWG has well-established diversified funding channels and strong relationships with most foreign, Hong Kong and Chinese banks. KWG has strong access to both domestic and offshore bond markets and was among the first few companies to issue panda bonds. KWG had available cash of CNY42 billion in 1H18, including restricted cash, which was enough to cover the repayment of its CNY9 billion in short-term borrowing and outstanding land premiums. Fitch expects the group to maintain sufficient liquidity to fund development costs, land premium payments and debt obligations in 2018-2019 due to its diversified funding channels, healthy maturity profile and flexible land acquisition strategy. YANBIAN FUNDE: To File for Bankruptcy Over Tax Default ------------------------------------------------------ Yonhap News Agency reports that a Chinese professional football club with a South Korean head coach will file for bankruptcy after failing to pay taxes, local reports said on Feb. 26. According to Yonhap, Chinese media reported that Yanbian Funde FC, coached by Hwang Sun-hong, will shut down after defaulting on CNY240 million (US$35.8 million) in taxes. They said Yanbian Korean Autonomous Prefecture, the Chinese Football Association and insurance company Funde failed to reach an agreement in their negotiations over the tax payment, Yonhap relates. Yonhap says Yanbian Funde will no longer be part of the second-tier Chinese Football Association China League, and contracts it reached with Hwang and the rest of the team have been voided. Yonhap notes that the latest development leaves Mr. Hwang out to dry. The former national team star stepped down as head coach of K League 1 club FC Seoul last year and was appointed Yanbian's new boss last December. Yanbian have been training in the South Korean city of Ulsan, and the Chinese media said the team will return to China on Feb. 27. Asked about the club's situation, Mr. Hwang said, "I don't know what to say. I'll have to sort things out after going back to China," Yonhap relays. The club was formed in 1955 as Jilin FC. Yanbian captured the second division title in 2015 to earn a promotion to the top-flight competition. But in 2017, they finished 15th in the Chinese Super League (CSL) and were relegated back to the second-tier league for the following year. They ranked 10th in the second division in 2018. ================= H O N G K O N G ================= AGILE GROUP: S&P Rates New USD Sr. Unsecured Notes 'BB' ------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Agile Group Holdings Ltd. (BB/Stable/--). The issue rating is subject to S&P's review of the final issuance documentation. S&P said, "We equalize the issue rating with our issuer credit rating on Agile, given the debt is not significantly subordinated relative to other debt in the company's capital structure. As of June 30, 2018, Agile's capital structure consists of Chinese renminbi (RMB) 32.6 billion of secured debt, RMB41.9 billion of unsecured debt issued at the parent level, and RMB15.3 billion of unsecured debt (including financial guarantees to borrowings of joint ventures and associates) issued by its subsidiaries. The company issued senior unsecured notes totaling US$1 billion (equivalent to about RMB6.8 billion) in July and November 2018. We anticipate Agile will continue to use its diversified offshore channels to refinance debt. "We do not expect the new issuance to have a material impact on Agile's credit profile, given that the company intends to use the proceeds primarily for refinancing existing debt. Agile's contracted sales increased to RMB102.6 billion in 2018, from RMB89.7 billion in 2017. In our view, the company will maintain steady sales growth and good margins, supported by its sizable low-cost land bank. At the same time, we only expect a moderate increase in Agile's leverage because its margins and revenue growth will offset the impact of rising capital spending." ========= I N D I A ========= ADARSH NOBLE: CARE Migrates 'D' Rating to Not Cooperating --------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Adarsh Noble Corporation Limited (ANCL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 21.25 CARE D; Issuer not cooperating; Facilities Based on best available information Short-term Bank 3.75 CARE D; Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from ANCL to monitor the ratings vide e-mail communications/letters dated January 17, 2019, January 24, 2019 & January 28, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Adarsh Noble Corporation Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Adarsh Noble Corporation Limited'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 ratings take into account the on-going delays in debt servicing. Detailed description of the key rating drivers At the time of last rating on October 4, 2018 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies & interaction with the banker): Ongoing delays in debt servicing: There are delays in interest servicing of the Cash Credit (CC) account for more than 30 days. Deteriorated financial risk profile in FY18: ANCL's operating income increased from INR34.28 crore in FY17 to INR99.42 crore in FY18. However PBILDT margin deteriorated from 10.56% in FY17 to 1.01% in FY18. The company reported gross cash deficit of INR2.79 crore in FY18 vis-à-vis gross cash accruals of INR 1.52 in FY17. The overall gearing of the company deteriorated from 0.43x as on March 31, 2017 to 0.88x as on March 31, 2018 due to depletion of net worth as a result of losses incurred in FY18. Adarsh Noble Corporation Limited was incorporated in 2006 by Bhubaneswar-based by Mr. M. K. Acharya. Prior to setting up of ANCL, the promoters were engaged in construction business through a partnership firm, named A. P. Construction since 1997. ANCL is engaged in Engineering, Procurement and Construction (EPC) in the field of construction and maintenance of petrochemical storage tanks, equipment erection, etc. Majority contribution to revenue of the company is from public sector entities in the oil & gas sector and large players in the aluminum & steel sector. ANIL CONSTRUCTION: Ind-Ra Migrates BB LT Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Anil Construction Company's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Fund-based limits migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; -- INR20 mil. Proposed fund-based limits migrated to Non- Cooperating Category with Provisional IND BB (ISSUER NOT COOPERATING) rating; and -- INR70 mil. Non-fund-based limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 29, 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 2000, Anil Construction Company is a partnership firm engaged in road construction and maintenance for Madhya Pradesh Rural Road Development Authority, with whom it has a Class A contractor status. ANN PRODUCTS: CARE Lowers Rating on INR9.75cr Loan to 'B' --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Ann Products and Machines Private Limited (APM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 9.75 CARE B; Stable Issuer not Facilities cooperating; Revised from CARE B+; Stable on the basis of best available information Detailed Rationale and key rating drivers CARE has been seeking information from APM to monitor the rating vide email communications/letters dated January 21, 2019, January 14, 2019, January 7, 2019, October 24, 2018, October 8, 2018, September 26, 2018, September 17, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on APM's bank facilities will now be denoted as CARE B; Stable ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating takes into account limited experience of promoters in food processing industry, project stabilization risk associated with debt funded project coupled with debt funding not tied up. The ratings are further constrained by competitive nature of the frozen food industry, high working capital intensity in the business and susceptibility of margins to fluctuation in agro-based raw material prices. The ratings, however, draw comfort from Association with established brand "Patanjali", favorable industry scenario. Detailed description of the key rating drivers At the time of last rating in May 7, 2018 the following were the rating strengths and weaknesses. Key Rating Weaknesses Limited experience of promoters in food processing industry: APM is currently in processing of acquiring a processing facility of fruits and vegetables which is a new venture for its promoters who do not have any previous experience in the business. The promoters of company, Mr. Vivek Gupta had an experience of more than two decades in construction and manufacturing industry. Mr. Sachin Pandey had an experience of more than one decade in real estate and trading industry. Both the promoters shall look after the day-to-day operation of the company. They have ventured into food processing industry due to the increasing demand of ready-to-cook food products and favorable government policies to support the same. Project stabilization risk associated with debt funded project coupled with debt funding not tied up: APM is in process to acquire a unit set up for production of various food products like tomato soup, concentrates, sauce, puree, ketchup, fruit jam and jelly, pickles etc with a total project cost of INR 12.50 crores to be funded through term loan of INR9.25 crores and balance through promoter's contribution. The debt for the same is yet to be tied up. Hence, it exposes the company to funding risk. Furthermore, stabilization of the manufacturing facilities to achieve the envisaged scale of business associated with the products in the light of competitive nature of industry remains crucial for the company. Raw material prices dependent on agro-climactic conditions: The major raw material for the company consists of vegetables and fruits. The prices of which are highly fluctuating because of their seasonal availability and other factors like irregularity of climatic condition to unpredictable yields. However, the risk is partially mitigated by the fact that the raw material will be supplied to the company from Patanjali Ayurved Limited itself. Competition from organized and unorganized sectors: The nature of business of the company is highly competitive with presence of highly established players. APM is exposed to intense competition from organized domestic and international brands Kissan, Del Monte etc. Apart from the organized players, the company faces challenge from various smaller players in the market. Moreover, the business is also susceptible to changing preferences of consumers towards products, brands, etc. Key Rating Strengths Association with established brand "Patanjali": The company has entered into an agreement with Patanjali Ayurved Limited (PAL) for manufacturing, packing and selling of food and edible items for tenure of 7 years with the assured supply of basic raw materials & buy back arrangements. Company's association with PAL and will provide broad support with respect to the product off take and reputed customers base ensures timely realization of receivables. Favorable Industry Outlook: The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The Indian food and grocery market is the world's sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country's total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. Also, busier consumer lifestyle, rising purchasing power, rapid urbanization and increase in population of the country has led to fuelling the demand and development of food processing industry. Delhi based APM was incorporated in December 27, 2016 by Mr. Vivek Gupta and Mr. Sachin Pandey. The company is in process to acquire running unit namely 'Divya Bhoj Sansthan' engaged in processing of food products like tomato soup, concentrates, sauce, puree, ketchup, fruit jam and jelly, pickles etc. B.V.L. EXPORTS: Ind-Ra Lowers Long Term Issuer Rating to 'B-' ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded B.V.L. Exports Private Limited's (BVL) Long-Term Issuer Rating to 'IND B-' from 'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating action is: -- INR1.250 bil. Fund-based working capital limits downgraded with IND B-/Stable/IND A4 rating. KEY RATING DRIVERS The downgrade reflects deterioration in the credit profile of BVL to a weak level in FY18 from a modest level in FY17, driven by a decline in the execution of tobacco trading orders. BVL's revenue fell to INR415 million in FY18 from INR1,735 million in FY17. BVL recorded a revenue of INR100 million for 9MFY19. Its scale of operations reduced to small from medium during the period. BVL's EBITDA margin was modest and fell to 3.2% in FY18 from 3.4% in FY17 due to an increase in overheads. Its return on capital employed was 0.1% in FY18 (FY17: 3%). Moreover, BVL's net financial leverage (total adjusted net debt/operating EBITDA) deteriorated to 96.2x in FY18 from 20.9x in FY17 and gross interest coverage (operating EBITDA/gross interest expense) reduced to 0.1x from 0.4x. The deterioration in the credit metrics was largely due to a decrease in absolute EBITDA (FY18: INR13 million; FY17: INR60 million). The debt level was largely stable at INR1,291 in FY18 (FY17: INR1,252) and the interest expense reduced to INR120 million (INR170 million). The ratings continue to reflect BVL's tight liquidity. Its fund-based facility was almost fully utilized during the 12 months ended January 2019. As of March 2018, the company had a cash balance of INR9.3 million and restricted cash of INR1.0 million. BVL net working capital cycle considerably elongated to 952 days in FY18 (FY17: 219 days) owing to a sharp increase in debtors days to 800 (148). The ratings, however, are supported by the promoter's experience of over four decades in tobacco trading. RATING SENSITIVITIES Negative: Any further elongation of the working capital cycle, leading to a stretched liquidity, could be negative for the ratings. Positive: A substantial increase in the revenue and a rise in the operating profitability, leading to an improvement in the credit metrics, all on a sustained basis, would be positive for the ratings. COMPANY PROFILE Incorporated on 29 October 1997, BVL is engaged in tobacco procurement and trading. In addition, it is engaged in the trading of granites. Its registered office is in Prakasam District, Andhra Pradesh. BAJAJ ENERGY: CARE Reaffirms D Ratings on INR2,504.65cr Loans ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Bajaj Energy Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Bank facilities- fund based-LT Term loan 1,497.65 CARE D Reaffirmed Bank facilities- fund based- LT-CC 950.00 CARE D Reaffirmed Bank facilities- non fund based- ST-BG/ LC 57.00 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The re-affirmation of ratings assigned to the bank facilities of BEL continues to factor in ongoing delays in the debt servicing by the company. Going forward, the ability of the company to generate higher cash accrual and service the debt obligations in a timely manner shall be the key rating sensitivities. Also the ability of the company to realize its receivables on time shall be monitor able. Detailed description of the key rating drivers Continuing delays in the servicing of debt obligations: There are continuing delays in the servicing of debt obligations pertaining to the debt drawn for the project on account of stretched liquidity position of the company. The delay in realization from Uttar Pradesh Power Corporation Ltd (UPPCL) has led to cash flow mismatch of BEL, causing delay in debt servicing. Weak liquidity The liquidity profile of the company is weak on account of depletion of debt service reserve, low cash balance of INR 8.2 crore as on March 31, 2018. The average collection period has increased from 72 days in FY17 to 118 days in FY18 on account of delay in realization of receivables from its off-taker i.e UPPCL. Moreover, fund based working capital utilization has also been high. Favourable verdict from Hon'able UPERC: UPERC, vide its order on January 3, 2018, had observed that there is no provision in the PPAs executed by BEL with UPPCL which allows unilateral exit from the obligations incorporated in the PPAs by either party. Hence UPPCL's action cannot be legally justified. There is a repudiation of the agreement by UPPCL which has resulted into procurer's event of default. Thus, the order has ensured reinstatement of power offtake arrangement with UPPCL, leading to visibility in revenue going forward. The order has also allowed for billing of a portion of the fixed charge from the date of exit notice to the order date. BEL was originally incorporated as Bajaj Eco-chem Products Private Limited in June 2008 and was renamed as Bajaj Energy Private Limited in March 2010 and converted to public limited company in November 2015. BEL is engaged in thermal power generation and operates 450 MW (5x2x45 MW) capacity power plants spread across five different locations, viz, Barkhera, Khambarkhera, Utraula, Kundarki and Maqsoodapur in Uttar Pradesh. The commercial operations date (COD) for the entire project was declared in April 2012. BEL is a part of the Shishir Bajaj Group of companies. Bajaj Hindusthan Sugar Limited (BHSL) entered into a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh (GoUP) in January 2010 for setting up 450 MW (5x2x45 MW) thermal power project at five locations in U.P. within the existing premises of sugar plants of BHL. The project was subsequently transferred to BEL which is wholly-owned by Bajaj Power Ventures Private Limited (BPVPL). CHIDDARWAR CONSTRUCTION: Ind-Ra Keep BB- in Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Chiddarwar Construction Company Private Limited's (CCCPL) Long-Term Issuer Rating in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- The IND 'BB-' rating on the INR120 mil. Fund-based working capital limits* maintained in the non-cooperating category and withdrawn; and -- The 'IND A4+' rating on the INR30 mil. Non-fund-based working capital limits# maintained in the non-cooperating category and withdrawn. * Maintained in 'IND BB- (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn # Maintained in 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS CCCPL did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection certificate from the rated facilities' lenders. COMPANY PROFILE Set up in 1988, CCCPL executes road construction work for the central government (70%) and the Maharashtra government (30%). DHANRAJ RICE: CARE Reaffirms B+ Rating on INR11.27cr LT Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Dhanraj Rice Industries (DRI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.27 CARE B+; Stable Reaffirmed Facilities Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of DRI continues to remain constrained on account of its constitution as a partnership firm, susceptibility of fluctuation in raw material prices and presence in highly regulated and fragmented industry. The rating also factors in weak financial risk profile marked by small scale of operation, low profitability, leveraged capital structure and modest debt coverage indicators. The rating, however, continues to derive comfort from vast experience of the partners in agro processing industry, support from associate concern and proximity to raw material sources. The rating also factors in successful completion of its green-field project. DRI's ability to stabilize its business operations and establishing customer base would be key rating sensitivity. Further, achieving envisaged level of sales and profitability in volatile raw material pricing scenario and highly competitive industry would also remain crucial. Detailed description of the key rating drivers Key Rating Weaknesses Constitution as a partnership firm: DRI being a partnership firm is exposed to inherent risk of partner's capital being withdrawn at time of personal contingency and firm being dissolved upon the death/retirement/insolvency of the partners. Susceptibility to fluctuation in raw material prices and highly regulated industry: DRI is primarily engaged in the processing and milling of various agro based products like various types of rice, wheat. The prices are also sensitive to seasonality in grain production, which is highly dependent on monsoon. Any volatility in the grains like paddy and wheat prices will have an adverse impact on the performance of the rice and wheat mill. Given the market determined prices for finished product vis-à-vis fixed acquisition cost for raw material, the profitability margins are highly vulnerable. Presence in highly regulated and fragmented industry: This product being an agricultural output and staple food, its price is subject to intervention by the government. In the past, the prices of rice have remained volatile mainly on account of the government policies in respect of Minimum Support Price (MSP) & controls on its exports. DRI operates in lower segment of the value chain and faces stiff competition from other players in the area. The commodity nature of the product makes the industry highly fragmented with more than two-third of the total number of players being in unorganized sector with very less product differentiation. Due to the fragmented nature and low entry barriers in the industry, the agro processing commodity mill units have limited flexibility over pricing their products which also results in low profit margins. Weak financial risk profile albeit first year of operations: As DRI has commenced its operation from November 2018. till January 23, 2019 (Provisional) DRI has reported TOI of INR 8.88 crore reflecting its small scale of operation. Further profitability remained thin marked by PBILDT margin of 3.72% owing to its low value addition nature of business. Further, owing to low networth base as on January 23, 2019 the capital structure also remained leveraged marked by overall gearing ratio of 3.08 times. The debt coverage indicators marked by interest coverage ratio remained modest at 1.27 times. Further, the average utilization of working capital bank borrowing remained high at ~90% during 2 months ended December 2018. Key Rating Strengths Vast Experience of Partners: DRI has been formed and managed by Mr. Manahardan H. Gadhavi and Mr. Parikshit S. Gadhavi and both the partners have vast experience in agro processing industry. Support from associate concern: DRI would derive benefit from the existing marketing network of is an associate concerns i.e. Mirambika Agro Industries which has established track record in agro processing industry. Promoters had setup this unit to expand its product profile to milling of rice and wheat. DRI will utilize their marketing and dealer network which is present all over Ahmedabad and Rajkot and will be later replaced by its own setup of dealer and marketing network. Proximity to raw material sources and favourable industry scenario: The manufacturing facility of DRI is located in Bavla district of Gujarat, which is favourable for food grain trading business. The location also provides proximity to sources of raw material access and smooth supply of raw materials at competitive prices and lower logistic expenditure. Successful completion of the green-field project: DRI has successfully completed the project within cost parameters however the commercial was delayed by 7 months and started commercial production from November, 2018 because of non-availability of labour to install its machinery for milling and processing of wheat and rice. Total cost of project was INR6.61crore funded through debt/equity mix of 2.34:1.00 times. Ahmedabad (Gujarat) based DRI is a limited liability partnership firm established in May, 2017 by Mr. Manahardan H. Gadhavi and Mr. Parikshit S. Gadhavi. DRI has completed its green field project of milling and processing of wheat and rice with total capital cost of INR6.61 crore and commenced commercial operation from November 2018 onwards and it is operating from its sole manufacturing unit located in Bavla(Gujarat) with installed capacity of 5 tonnes per hour per day each for wheat and rice as on January 23, 2019. It has an associate concerns named Mirambika Agro Industries (MAI, rated CARE BB-; Stable) which is engaged in milling and processing of wheat and rice and Kishan Biofuels (KBS) which is engaged in processing of bio-degradable waste. YTD January 23, 2019 (Provisional) DRI has reported TOI of INR 8.88 crore with PBILDT of INR0.33 crore and PBDT of INR0.07 crore. During H1FY19 (Provisional), GIF registered TOI of INR8.03 crore. E.S. KNIT WEAR: Ind-Ra Moves D LT Issuer Ratings to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated E.S. Knit Wear Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR7.83 mil. Long-term loan (Long-term) due on March 2020 migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR41.5 mil. Fund-based facility (Long-term) migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR1.5 mil. Non-fund-based facility (Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 14, 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 1985 as a proprietorship firm, E.S. Knit Wear manufactures and exports knitted garments. The firm has an installed capacity of 3, 00,000 pieces per month. EAPRO GLOBAL: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Eapro Global Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR80 mil. Fund-based limit migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR10 mil. Non-fund-based limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Term loan due on October 2020 migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 27, 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 2012 by Mr. Jagdeep Chauhan and Mrs. Abhilasha Singh, Eapro Global manufactures inverters for industrial and commercial use at its manufacturing facility in Roorkee, Uttarakhand. EMBEE AGRO: CARE Lowers Rating on INR20.33cr LT Loans to B ---------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Embee Agro Food Industries Private Limited (EAFIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 20.33 CARE B; ISSUER NOT COOPERATING; Facilities Revised from CARE B+; ISSUER NOT COOPERATING: Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from EAFIPL to monitor the rating vide e-mail communications/letters dated January 15, 2019, January 21, 2019 and January 22, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the rating. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating the rating on Embee Agro Food Industries Private Limited's bank facilities will now be denoted as CARE B; Issuer not Cooperating; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers The following were the rating strengths and weaknesses as per the updated information available: The ratings assigned to the bank facilities of Embee Agro Food Industries Private Limited (EAFIPL) continue to remain constrained by leveraged capital structure and weak debt coverage indicators and fluctuating PBILDT margins. The rating also takes into account established track record and experience of the promoter in rice milling industry, increase in total operating income and PAT margin, location advantage with presence in cluster and easy availability to paddy and healthy demand outlook of rice. Key Rating Weakness Fluctuating in PBILDT margin: The PBILDT margin declined in FY16 to 6.76% in FY16 from 13.15% in FY15. It improved to 7.90% in FY17. Leveraged capital structure and weak debt protection metrics: The capital structure marked by overall gearing was leveraged at 3.07x as on March 31, 2016 and March 31, 2017. The debt coverage indicators marked by PBILDT Interest coverage remained weak, however showed marginal improvement, and stood at 1.17x in FY17. TD/GCA, though improved, continued to remain weak at 18x in FY17 as against 27.18x in FY16. Key Rating Strengths Established track record and experience of promoter in rice milling industry: EAFIPL has established track record of 10 years. Mr S Animisha (Managing Director) has more than 25 years of experience in the rice milling industry. Mr B Soma shekar Gowda has more than four decades of experience in the rice milling industry and is very well versed with the working of the business and the industry. Due the directors' vast business experience, the company is able to established healthy relationship with key suppliers, customers and with the local farmers, dealers and also with the agents facilitating the business within the state and other states. Increase in total income and PAT margin: The total income of the company has been increasing for FY16 and FY17 from INR40.19 crore in FY16 to INR48.19 crore in FY17. The PAT margin, however, has been fluctuating from 0.14% in FY15 to -0.03% in FY16 and improving at 1.41% in FY17. Location advantage with presence in cluster and easy availability to paddy: The rice milling unit of EAFIPL is located at Davangere district, which is one of the major paddy cultivation areas in India. The manufacturing unit is located near to the rice producing region, which ensures easy raw material access and smooth supply of raw materials at competitive prices and lower logistic expenditure. The company procures paddy from the local farmers which is readily available and also resulting in low transportation costs. Healthy demand outlook of rice: Rice is consumed in large quantity in India which provides favorable opportunity for the rice millers and thus the demand is expected to remain healthy over medium to long term, India is the second largest producer of rice in the world after China and the largest producer and exporter of basmati rice in the world. The rice industry in India is broadly divided into two segments- basmati (drier and long grained) and non-basmati (sticky and short grained). Demand of Indian basmati rice has traditionally been export oriented where the South India caters about one-fourth share of India's exports. However, with a growing consumer class and increasing disposable incomes, demand for premium rice products is on the rise in the domestic market. Demand for non-basmati segment is primarily domestic market driven in India. Initiatives taken by government to increase paddy acreage and better monsoon conditions will be the key factors which will boost the supply of rice to the rice processing units. Rice being the staple food for almost 65% of the population in India has a stable domestic demand outlook. On the export front, global demand and supply of rice, government regulations on export and buffer stock to be maintained by government will determine the outlook for rice exports. Embee Agro Food Industries Private Limited (EAFIPL) was incorporated in 2005 as a private limited company promoted by Mr B. Somashekhar Gowda and other three directors. All the directors belong to same family. EAFIPL erstwhile known as Magnur Syndicate, a partnership firm established in the year 1999 and promoted by Mr B. Somashekahar Gowda and other three partners. Since inception, the company is engaged inrice milling and processing, however, the processing activity closed in August 2012 since pollution control board insisted to close the unit in that location. Therefore, the company entered into trading of paddy and rice. Later, the company purchased a 7 acres land at Karnataka Industrial Area Development Board (KIADB) to set up a processing unit. The main raw material; paddy, is directly procured from local farmers located in and around Davangere and nearby locations during the off season. The major sales of the company are in Karnataka and Maharashtra regions. GAURISANKAR ELECTRO: CARE Moves D on INR8cr Debt to Not Cooperating ------------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Gaurisankar Electro Castings Pvt. Ltd. (GECPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 8.26 CARE D; Issuer not cooperating; Facilities based on best available information Detailed Rationale and key rating drivers CARE has been seeking information from GECPL to monitor the ratings vide letters/e-mails communications dated January 21, 2019, January 18, 2019, January 8, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requiste information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on GECPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating in November 9, 2017 the following were the rating strengths and weaknesses: (Updated the information available from Ministry of Corporate Affairs). Key Rating Weaknesses: Ongoing delays in debt servicing: There are on-going delays in servicing of debt obligations by the company due to its stressed liquidity position. GECPL, incorporated in 2001 by Mr. Ramjeet Prasad and Mr. Sunil Kumar based out of Jharkhand with the objective of manufacturing of iron & steel products. Since inception, the company is engaged in manufacturing of mild steel (MS) bars and the facility of the company is located at Giridih, Jharkhand with an annual installed capacity of 17000 Metric Tonnes per annum for M.S. Bar, 24,000 Metric Tonnes per annum for M.S. Ingot and 2000 Metric Tonnes per annum for M.S. Scrap. Liqudity position: Comment on liquidity is not available due to non cooperation and aslo banker could not be contacted. Moreover, as per last interaction with the banker there were on-going delay in debt servicing of the company. GMR RAJAHMUNDRY: CARE Reaffirms D Ratings on INR2,557.43cr Loans ---------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of GMR Rajahmundry Energy Limited (GREL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 2,352.39 CARE D Reaffirmed Facilities (Term Loan) Long term Bank 67.02 CARE D Reaffirmed Facilities-Fund Based (Cash Credit) Short-term Bank 138.02 CARE D Reaffirmed Facilities-Non- fund Based (LC/BG) Detailed Rationale & Key Rating Drivers The re-affirmation of ratings assigned to the bank facilities of GREL continues to factor in ongoing delays in the debt servicing by the company. Going forward, the ability of the company to service the debt obligations in a timely manner coupled with improvement in the overall financial risk profile shall be the key rating sensitivities. Detailed description of the key rating drivers Continuing delays in the servicing of debt obligations: There are continuing delays in the servicing of debt obligations pertaining to the debt drawn for the project on account of stretched liquidity position of the company. Due to lower availability of gas, the plant operated at sub optimal level. This led to deterioration in the financial risk profile and impacted the cash accruals which were not sufficient to service the debt obligations. At present, the plant has no operations on account of absence of long term fuel supply arrangement and power purchase agreement. Resolution Plan (RP) approved by lenders: In view of constraints in servicing of debt obligation, the company had submitted RP to consortium of lenders pursuant to circular on resolution of stressed assets announced by RBI on Feb. 12, 2018. The RP submitted by company was based on detailed analysis of future power scenario, availability of domestic/imported gas at affordable price and future outlook of gas based power plants. As conveyed by the company, the said RP has been approved by the consortium of lenders and is in various stages of implementation. Incorporated in November 2009, GMR Rajahmundry Energy Limited (GREL) is a Special Purpose Vehicle (SPV) promoted by GMR Generation Assets Limited to set up a 768 MW (2x384 MW) gas-based Combined Cycle Power Plant (CCPP) at Vemagiri, Dist. East Godavari, Andhra Pradesh. GREL has been set up adjacent to the existing 389 MW gas-based CCPP of GMR Vemagiri Power Generation Limited, the project achieved Commercial Operations Date (COD) on October 22, 2015. GOAN REAL: CARE Lowers Rating on INR67.86cr LT Loan to D -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Goan Real Estate and Construction Pvt. Ltd. (GRECPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 67.86 CARE D Revised from CARE B; Facilities Stable Detailed Rationale & Key Rating Drivers The revision in rating assigned to the bank facilities of GRECPL takes into account the on-going delays in servicing of its debt obligations. Detailed description of the key rating drivers: Key Rating Weakness Delays in repayment of term loan: There are ongoing delays in repayment of term loan on account of cash flow mismatches and liquidity stress in the company. Goan Real Estate and Construction Pvt Ltd (GRECPL), incorporated in 1989, has been promoted by the Dynamix Group. The Dynamix Group was founded in the early 1970's by Mr. K. M. Goenka with a foray in real estate development. GRECPL is developing one of the largest integrated township-type project named "Aldeia de Goa" located at Bambolim, Goa, spread over nearly 145 acres of land. The project is being developed in a phase wise manner. The project encompasses exclusive plots, villas, apartments, landscaped gardens, multiple clubhouses, a five star hotel and a proposed mall with commercial and retail spaces. Out of the five phases, Phases I, II, IV and V (Sector 1) are completed. The residential complex comprises of two developments: INR10 residential villas proposed as 'Frangipani' (Villa A to J) INR18 residential apartment buildings (Building A to R). HANUMAN COTTON: CARE Keeps D in INR8cr Loans in Not Cooperating --------------------------------------------------------------- CARE had, vide its press release dated November 9, 2017, placed the rating(s) of Hanuman Cotton Industries (HCI) under the 'issuer non-cooperating' category as HCI had failed to provide information for monitoring of the rating for the rating exercise as agreed to in its Rating Agreement. HCI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and an email dated October 30, 2018, November 6, 2018, November 13, 2018, November 20, 2018, November 27, 2018, December 12, 2018, January 22, 2019, January 24, 2019 In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.01 CARE D; Issuer not cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on November 9, 2017, the following were the rating strengths and weaknesses: Key Rating Weaknesses Ongoing delay in debt servicing: HCI has been irregular in servicing its debt obligation owing to weak liquidity position. Hanuman Cotton Industries (HCI) was constituted in March 2006 as a partnership firm by Vekaria family based out of Amreli (Gujarat) by eight partners with unequal profit and loss sharing agreement among them. HCI is primarily engaged in cotton ginning & pressing activities with an installed capacity of 10,886 Metric Tonnes Per Annum (MTPA) for cotton bales, 18,380 MTPA for cotton seeds and oil-seed crushing facility with a capacity of 1381 MTPA as on March 31, 2015 at its manufacturing facility located at Savarkundla in Amreli district (Gujarat). HEENA ENTERPRISES: Ind-Ra Affirms 'BB-' LT Rating on INR180MM Debt ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed M/s Heena Enterprises' (Heena) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is: -- INR180 mil. Fund-based working capital limit affirmed with IND BB-/Stable/IND A4+ rating. KEY RATING DRIVERS The affirmation reflects Heena's continued modest scale of operations as reflected by revenue of INR1,189 million in FY18 (FY17: INR1,617 million, FY16: INR1,808 million). The decline in revenue was primarily on account of transfer of a portion of business from JSW Steel Limited ('IND AA-'/Stable) to the newly floated firm, Heena Steel LLP in September 2017. For FY19, the management expects the revenue to decline further, primarily on account of a reduction in sales volume as the firm is now solely engaged in trading products of Rashtriya Ispat Nigam Limited ('IND A-'/Negative) and Steel Authority of India Limited ('IND AA '/Stable). In 9MFY19, Heena achieved revenue of INR408.8 million with an EBITDA margin of 2.8%. Despite the continuous fall in revenue, EBITDA margin remained healthy at 3.3%-3.4% during FY17-FY18 on account of better price realization. The firm's return on capital employed was 16% in FY18 (FY17:16%). The firm's credit metrics remained modest despite an improvement in its interest coverage (operating EBITDA/gross interest expense) to 1.98x (FY17: 1.88x) and net leverage (net adjusted debt/operating EBITDAR) to 3.43x (4.33x). The improvement in the credit metrics was primarily driven by a reduction in total debt to INR148 million in FY18 (FY17: INR246 million). Ind-Ra expects the credit metrics to deteriorate in FY19 on account of the decline in revenue and profitability. The ratings remain constrained by the proprietorship nature of the business. However, the ratings continue to be supported by Heena's comfortable liquidity position as reflected by 67.4% average maximum utilization of its fund-based working capital limit for the 12 months ended January 2019. Its cash flow from operations improved to INR126 million in FY18 (FY17: INR51 million) on account of better working capital management. The firm's net working capital cycle improved to 53 days in FY18 (FY17: 67 days) on account of a reduction in inventory holding period to 52 days (84 days) and debtor collection period to 12 days (19 days). The ratings continue to benefit from the firm's promoter's experience of more than five decades in the steel and iron trading business. RATING SENSITIVITIES Negative: Any deterioration in the EBITDA margin and credit metrics could be negative for the ratings. Positive: A significant increase in the revenue and EBITDA margin, leading to a sustained improvement in the credit metrics could be positive for the ratings. COMPANY PROFILE Incorporated in 1977, Heena is engaged in the trading of iron and steel products. The firm derives over 95% of its revenue from the trading of steel products. INVENTION REALTORS: CARE Maintains D Rating in Not Cooperating -------------------------------------------------------------- CARE had vide its press release dated September 21, 2017, placed the ratings of Invention Realtors Private Limited (IRPL) under the 'issuer non-cooperating' category as IRPL had failed to provide information for monitoring of the rating. IRPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 08, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 15.00 CARE D; Issuer Not Cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into account the ongoing delays in debt servicing. Detailed description of the key rating drivers At the time of last rating on September 21, 2017 the following were the rating strengths and weaknesses. Key Rating Weaknesses Delay in debt servicing obligations: As per the interaction with the banker there have been instances of delays in debt servicing. IRPL is a private limited company formed in 2003 and belongs to the Maruti Group of Mumbai. Maruti group was formed by Mr. Mukesh Agrawal in the year 2004. IRPL was formed for the execution of a commercial project named; "Maruti Business Park" with a total saleable area of 0.73 lakh sq. ft. (lsf), situated at Jogeshwari (E), Mumbai. The land has been acquired by executing a sale deed with the land owners in the name of IRPL. JAYPEE INFRATECH: NBCC Bids to Acquire Firm to Complete Housing --------------------------------------------------------------- The Indian Wire reports that the National Building Construction Corporation (NBCC) bids to acquire the bankruptcy ridden Jaypee Infratech of Jaypee Group. According to the report, the real estate company which has been going through a financial crises is looking for insolvency resolution couple of years. A majority of the real estate products planned by the entity are pending due to lack of money. Indian Wire relates that the NBCC's chairman Anoop Kumar Mittal said the state owned company is "keen to acquire" Jaypee Infratech and is willing to complete around 20,000 housing units which are pending. He refrained from giving any exact details regarding the amount of the bid but commented that the resolution plan would be beneficial for all the stake holders, the report relays. "Resolution Plan in respect of Jaypee Infratech has been submitted by the NBCC to the Interim Resolution Professional on 15th February, 2019," Indian Wire quotes NBCC as saying in a filing to BSE. Anuj Jain, the appointed Interim Resolution Professional (IRP) as per the insolvency and bankruptcy code, earlier asked Kotak Investment, NBCC, Suraksha group and Singapore-based Cube Highways to submit their resolution plans by February 15, Indian Wire says. In 2017, IDBI Bank led lender's consortium approached the NCLT to initiate a resolution plan under the IBC 2016. NCLT approved it and appointed Anuj Jain as the IRP for this insolvency process. During the process, Sauraksha group bid to acquire the bankrupt JaYpee Infratech but the resolution didn't came to any final conclusion as lenders found the proposed bid of INR7,350 Crore not adequate. So, in October last year IRP started the Insolvency proceedings again and this new bid is part of the process. Jaypee has an outstanding debt of INR9,800 Crore which it owns to various lender including IDBI to which it owns INR4,334 Crore, Indian Wire notes. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. On August 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In September 2017, the Supreme Court of India stayed the insolvency proceedings initiated against JIL, after various associations of homebuyers moved a batch of petitions fearing they will lose their apartments and not get any compensation, according to Livemint. The stay was later revoked by the court, which directed the resolution professional to submit an interim resolution plan that takes into account the interest of homebuyers. The court also directed the parent company, JAL, to deposit INR2,000 crore to protect the interest of homebuyers. Out of this, only INR750 crore has been deposited so far, Livemint relayed. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, JAL owes more than INR29,000 crore to various banks, the report added. JET AIRWAYS: Grounds 7 More Planes on Lease Default --------------------------------------------------- Reuters reports that Jet Airways Ltd said on Feb. 27 it grounded seven more aircraft as the carrier failed to make payments to its lessors, taking the tally of planes hamstrung by the defaults to 13. Jet is "actively engaged" with all its aircraft lessors, the airline said, adding that its aircraft lessors have been supportive of the company's efforts to improve liquidity, Reuters relates. With debts of more than $1 billion, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months. According to Reuters, the loss-making Indian airline approved a rescue deal in mid-February after months of talks to plug an INR85 billion ($1.2 billion) funding hole. Reuters relates that the plan, which has also been approved by Jet shareholders, includes selling a majority stake to a consortium led by State Bank of India, the airline's biggest creditor, at INR1. Reuters had previously reported that international lessors had grounded more Jet Airways planes before potentially moving them out of India, as scepticism built over whether the bailout of the carrier can clear their dues on time. On Feb. 23, the airline revealed bit it had grounded two more aircraft in addition to the four earlier this month over default to its lessors, Reuters says. Jet has a fleet of about 123 mainly Boeing planes, including 16-owned aircraft. The rest are leased from a range of lessors including GE Capital Aviation Services, U.S.-based BBAM and Japan's SMBC Aviation Capital, sources have said, Reuters discloses. About Jet Airways Based in Mumbai, India, Jet Airways (India) Limited -- https://www.jetairways.com/EN/PH/Home.aspx -- provides passenger and cargo air transportation services. It operates through two segments, Air Transportation and Leasing of Aircraft. The company also leases aircrafts. It operates flights to 64 destinations in India and international countries, including Abu Dhabi, Amsterdam, Bahrain, Bangkok, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London Heathrow, Muscat, Paris, Riyadh, Sharjah, Singapore, and Toronto. As of August 31, 2017, the company had a fleet of 113 aircraft, which includes a mix of Boeing 777-300 ERs, Airbus A330-200/300 aircraft, Next Generation Boeing 737s, and ATR 72-500/600s. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 28, 2018, ICRA revised the ratings on certain bank facilities of Jet Airways (India) Limited to [ICRA]C from [ICRA]B. The rating downgrade considers delays in the implementation of the proposed liquidity initiatives by the management, further aggravating its liquidity, as reflected in the delays in employee salary payments and lease rental payments to the aircraft lessors. Moreover, the company has large debt repayments due over the next four months (December-March) of FY2019 (INR1,700 crore), FY2020 (INR2,444.5 crore) and FY2021 (INR2,167.9 crore). The company is undertaking various liquidity initiatives, which includes, among others, equity infusion and a stake sale in Jet Privilege Private Limited (JPPL), and the timely implementation of these initiatives is a key rating sensitivity. Moreover, the company continues to witness a stress in its operating and financial performance. JORBAT SHILLONG: Ind-Ra Cuts Ratings on INR8.8BB NCDs to B ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded the rating on Jorbat Shillong Expressway Limited's (JSEL) senior and subordinated non-convertible debentures (NCDs) to 'IND B (SO)' from 'IND BB (SO)' while revising the Rating Watch status to Rating Watch Negative (RWN) from Rating Watch Evolving (RWE) as follows: -- INR6.412 bil. Senior NCDs* rating downgraded; rating Watch Revised to Negative from Evolving with IND B(SO)/RWN; and -- INR2,421.6 bil. Subordinate NCDs* rating downgraded; rating Watch Revised to Negative from Evolving with IND B (SO)/RWN. * Details in annexure KEY RATING DRIVERS The rating downgrade and revision in watch to RWN follow National Highways Authority of India's ('IND AAA'/Stable) substantial annuity deduction of INR51.70 million and withholding of INR97 million of the INR725.10 million gross annuity amount. This was due to the damages imposed on account of continued delays in the completion of Umsning bypass and non-adherence of operations and maintenance requirements by JSEL. As on February 13, 2019, the company had liquidity of INR1,247 million in mutual funds and INR51 million in cash and bank balance. These amounts include a debt service reserve of INR595 million and a major maintenance reserve of INR58 million, as required by the agreements, and a construction reserve of INR150 million. According to the company, the pending project work would require an additional funding of about INR50 million. The redemption of INR237.80 million NCDs and interest payment of INR328.7 million are due on 1 March 2019. JSEL has been classified under the 'Amber' category according to the National Company Law Appellate Tribunal order dated 12 February 2019, which defines 'Amber Entities as Domestic Group Entities which are not able to meet all their obligations (financial and operational), but can meet only operational payment obligations and payment obligations to senior secured financial creditors'. Ind-Ra continues to seek clarity on these issues. RATING SENSITIVITIES The RWN will be resolved after seeking clarity on the ongoing issues with respect to the IL&FS group companies and completion of residual construction works and operations and maintenance works by JSEL. COMPANY PROFILE JSEL is an SPV that was incorporated to implement a lane expansion project under the build-operate-transfer annuity model. JSEL has a 20-year concession (expiring in January 2031) from National Highways Authority of India to design, construct, develop, finance, operate and maintain a 61.8km stretch between Jorbat (Assam) and Barapani (Meghalaya) on NH 40. JP AGRO: CARE Moves D on INR10cr LongTerm Loans to D ---------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of JP Agro (JPA) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 10.00 CARE D; Issuer Not Cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from JPA to monitor the rating vide e-mail communications/letters dated January 25, 2019, January 16, 2019 and January 15, 2019 and numerous phone calls 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 rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on JPA's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into account continuous delays in the repayment of interest of cash credit limit. Detailed description of the key rating drivers At the time of last rating on February 02, 2018 the following were the rating weaknesses Irregularity in repayment of installments and interest of term loan: There are continuous delays in the repayment of interest of cash credit limit on account of inadequate cash flow generation. Timely repayment of the debt is key rating sensitivity. JPA was established as a proprietorship concern in the year 2015. The firm is engaged in trading of agro commodities as wheat, soyabean, pulses and rice. The group companies JPK Constructions Private Limited and Pardeshi Constructions Private Limited, are engaged in construction business, whereas Desire is distributor of consumer electronic products. KAYTX INDUSTRIES: CARE Lowers Rating on INR40cr Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Kaytx Industries Private Limited (KIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 40.00 CARE D Revised from CARE BB; Facilities Stable Short-term Bank 15.00 CARE D Revised from CARE A4 Facilities Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of KIPL factors in ongoing delays in the servicing of the debt obligation. Detailed description of the key rating drivers Ongoing delays in debt servicing: There are ongoing delays in the servicing of the debt obligation for the working capital limits availed by the company. The cash credit limit has remained overdrawn for more than 30 days. KIPL was incorporated in 2005 by Mr Satish Dutt to undertake manufacturing and trading of steel structures including channels, angles, joists, etc. Subsequently, the company was acquired by the current promoters on April 1, 2011. The company has an integrated manufacturing facility and offers manufacturing, fabrication and galvanization of structured steel products with an installed capacity of 60000 MT per annum for steel structures, 30000 MT per annum for galvanization plant and 300 MT per day of fabrication capacity, as on March 31, 2017. The product of the company find application mainly in railway electrification, power projects, etc. The company is a registered vendor with Indian Railways, Power Grid Corporation of India Limited (PGCIL; rated CARE AAA; Stable/ CARE A1+), Delhi Metro Rail Corporation Limited, Tata Power Company Limited (Tata Power; rated CARE AA; Stable) and several state electricity boards amongst others. Further, the company has formed three Joint Ventures to undertake EPC projects for Indian Railways- M/s UBCKIPL-GIL JV, M/s Kaytx-Enrich-BC JV and M/s Katyx-UBC-BC JV, with KIPL holding 29% shareholding in the JVs, respectively. KIPL has two group companies, namely, R.P Steel Industries (RPSI; rated CARE D) and R P Rolling Mill Private Limited (RPRM). RP Steel is a proprietorship concern of Mr. Parshotam Aggarwal and is engaged in trading of iron and steel long products including rounds, billets, blooms, pig iron etc., since 1984. RPRM is not engaged in any business but receives lease income from property owned by it. LEELA HOTELVENTURE: JM Financial Files Insolvency Case vs. Firm --------------------------------------------------------------- Livemint.com reports that JM Financial Asset Reconstruction Company Ltd has filed an insolvency case against Leela Hotelventure Ltd at the National Company Law Tribunal (NCLT), Mumbai, said a BSE filing on Feb. 26. Leela Hotelventure, which has an outstanding debt of around INR3,800 crore, has been in talks with Canada-based Brookfield Asset Management to sell its assets to the latter to pare debt, the report says. Livemint.com relates that the deal, which will see Brookfield buying a bouquet of hotel assets from Leela for around INR4,500 crore, is expected to be signed anytime now. "The company is continuing to engage with prospective investors for a resolution," said Leela Hotel said in the filing, Livemint.com relays. Mint reported on December 17 that the company is close to buying at least four of five luxury hotels and a large land parcel owned by Leela Hotelventure. The Mumbai-based hotel chain owns five luxury hotels comprising over 1,400 rooms in New Delhi, Bengaluru, Chennai, Mumbai and Udaipur. Brookfield is likely to buy at least four of these properties and a large land parcel in Agra. As part of the deal, Brookfield is likely buyout the Leela brand as well. In 2014, Hotel Leelaventure had transferred its loans from 14 creditors to asset restructuring firm JM Financial ARC post failure of its corporate debt restructuring plan, the report recalls. In September 2017, it allotted over 160 million shares worth about INR275 crore to JMARC on conversion of debt to equity. JMARC owns 26% in Hotel Leela Venture. The bulk of the proceeds from the transaction was expected used to repay the 14 lenders, Livemint.com notes. LORD SHIVA: CARE Cuts Ratings on INR19.38cr Loans to D ------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Lord Shiva Construction Company Private Limited (LSC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 10.50 CARE D; Issuer not cooperating; Facilities Revised from CARE B+; Stable; Issuer not cooperating on the basis of best available information Short term Bank 1.38 CARE D; Issuer not cooperating; Facilities Revised from CARE A4; Issuer not cooperating on the basis of best available information Long term Bank 7.50 CARE D; Issuer not cooperating; Facilities/Short Revised from CARE B+; Stable/ term Bank CARE A4; Issuer not cooperating Facilities on the basis of best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from LSC to monitor the ratings vide e-mail communication/letter dated February 5, 2019 and numerous phone calls. However, despite our repeated requests, the company has not provided the requiste information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information. In line with the extant SEBI guidelines CARE's rating on Lord Shiva Construction Company Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account ongoing delays in debt servicing on account of weak liquidity position as the company is unable to generate sufficient funds in a time manner. Detailed description of the key rating drivers The revision in the rating takes into consideration following weaknesses: Key Rating Weaknesses Ongoing delays in debt servicing: There have been few instances of over utilization in the working capital limit on account of weak liquidity position as the company is unable to generate sufficient funds in a time manner, However, there have been no instances of revocation of the bank guarantee in the past. Haryana-based Lord Shiva Construction Co. Pvt. Ltd. (LSC) was incorporated in July 1992 and is currently being managed by Mr Anil Jain and his wife Mrs Sunita Jain. The company is engaged in construction works which involve construction of roads and civil construction (buildings). In road segment, LSC executes contracts mainly for PWD (Public Work Department), Haryana, and in civil construction the company had constructed buildings for government colleges based out of Haryana. MAHARAJA PAPER: CARE Lowers Rating on INR14.06cr LT Loan to C ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Maharaja Paper Industries Private Limited (MPIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14.06 CARE C; Stable, Issuer not Facilities cooperating; Revised from CARE B; Stable, on the basis of best available information Short-term Bank 3.00 CARE A4, Issuer not Facilities cooperating, based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from MPIPL to monitor the rating vide email communications/letters dated October 3, 2018, November 14, 2018, November 16, 2018 and January 8, 2019 and numerous phone calls. However, despite our repeated requests, the company has not provided the requisite information for monitoring the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of best available information which however, in CARE's opinion is not sufficient to arrive at fair rating. The rating on Maharaja Paper Industries Private Limited bank facilities will now be denoted as CARE C; Stable/CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers The rating assigned to the bank facilities of Maharaja Paper Industries Private Limited (MPIPL) continue to be tempered by the decline in total operating income, operating losses in FY18, elongated working capital cycle days. However, the rating also takes into account increase in PBILDT margin along with improvement in operating cycle days of the company. The ratings continue to take into account experienced promoters. As per annual report received from ROC and as confirmed by the banker the company has closed its business operations in February 2018. Key Rating Weakness Decline in total operating income and operating and net losses during FY18: The total operating income of the firm decreased from INR45.54 crore in FY17 to INR38.50 crore in FY18. The company has incurred net losses in FY18 due to high financial expenses. Elongated Working capital cycle days: The company operates in a working capital intensive industry. The operating cycle days decreased to 75 days in FY18 as compared to 122 days in FY17 on account of improved collection days and inventory holding period. Key Rating Strengths Experienced promoters and long standing track record: MPIPL is promoted by Mr. P. V. Ramakrishna Raju and their relatives. Mr. P. V. Ramakrishna Raju has a more than decade of experience in paper industry. Increase in PBILDT margin: The PBILDT margin of the company increased from 5.14% in FY17 to 5.25% in FY18 due to decrease in raw material cost Maharaja Paper Industries Private Limited (MPIPL) was incorporated in the year 1999 and promoted by Mr. P. V. Ramakrishna Raju and their relatives. The company was incorporated as Rolex Paper Mills Limited and later on, the name was changed to current nomenclature. MPIPL is engaged in the production of paper of all varieties viz. newsprint, cream wove and kraft papers. The manufacturing facilities are located at Chintaparru, Palakol Mandal, West Godavari District, Andhra Pradesh. MAHAVIR FOODS: CARE Maintains 'D' Rating in Not Cooperating ----------------------------------------------------------- CARE had, vide its press release dated November 27, 2017, placed the rating(s) of Mahavir Foods under the 'issuer noncooperating' category as Mahavir Foods had failed to provide information for monitoring of the rating. Mahavir Foods continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 22, 2019 and January 10, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.00 CARE D; Issuer not cooperating; Facilities Based on best available information Short-term Bank 15.00 CARE D; Issuer not cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been reaffirmed by taking into account non-availability of requisite information and no due-diligence conducted due to non-cooperation by Mahavir Foods with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Detailed description of the key rating drivers At the time of last rating on November 27, 2017, the following were the rating weakness: The ratings take into account the ongoing delays in the servicing of interest obligations due to stressed liquidity position. Mahavir Foods is a partnership concern established in 1998. Mr. Suresh Kumar and Mr. Amit Kumar are the partners with equal profit sharing ratio in the firm. The partners have two decades of experience in processing of rice. The firm is engaged in the business of milling, processing and trading of rice. The processing facility of the firm is located at Taraori, Karnal (Haryana). The firm procures the raw material (paddy) from Haryana, Uttar Pradesh and Punjab on cash or advance basis. The firm is mainly focusing on the international market especially to Middle East countries. The firm has a group associate concern, Sidhi Vinayak Rice Mills engaged in milling and processing of rice. MAHAVIR GHAR: CARE Hikes Rating on INR9.0cr LT Loan to B+ --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Mahavir Ghar Sansaar (MGS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 9.00 CARE B+; Stable Revised from Facilities CARE B; Stable Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of MGS takes into account the commencement of operations along with moderate profitability and solvency position in the first year of operation. The rating further takes into account the extensive experience of the promoters and long standing business relations with suppliers. The above strengths are partially offset by its nascent stage of operations, its presence in highly fragmented and competitive industry, susceptibility to government policies related to price and trading nature of operations. The rating is further constrained by working capital intensive nature of operations and partnership nature of constitution. The ability of the entity to improve its scale of operations with profitability along with efficient management of working capital requirement remains the key rating sensitivity. Detailed description of the key rating drivers Key Rating Strengths Moderate profit margin and solvency position: The firm commenced its operations as per the scheduled timeline (from December 2017). Further, with business operations in trading of agro commodities, entailing low value additions, the entity's profit margin stood moderate with PBILDT margin of 3.48 % in FY18. Moreover, with trading nature of business and relatively moderate net worth base of the firm led to increased reliance on debt to support its working capital requirement, hence resulting in moderate capital structure. Moreover, due to moderate profitability and debt profile, the debt coverage indicators remained moderate. Experienced partner: MGS is promoted by Mr. Kirti Parakh, Mr. Khushalchand Parak and Mr. Paras Parakh who are associated with trading of food product industry for more than two decades through their proprietorship firms. The partners look after the overall management of the firm with adequate support from a team of experienced professionals. Being in the industry for more than two decades will help the promoter to gain adequate acumen about the business which will aid in smooth operations of MGS. Long standing business relations with suppliers: The partners are associated with trading industry for more than two decades through previous entities; as a result the partners have long standing business relationship with the suppliers. Key Rating Weaknesses Nascent stage of operations: The entity is in nascent stage of operations as it commenced its operations in December, 2017. However, the extensive experience of promoters will help in smooth operations of the firm. Moreover, the company has achieved a total operating income of INR14.38 crore in its first year of operations. Presence in highly fragmented and competitive industry: MGS operates in an industry characterized by high competition due to low entry barriers, high fragmentation and the presence of a large number of players in the organized and unorganized sector. Thus, the entities present in the segment generally have a very low bargaining power vis-à-vis their customers. Working capital intensive nature of operations: The operations of the firm are working capital intensive with gross current assets of 213 days on account of high level of inventory required to be maintained by the retailers to ensure ready availability of stock. Susceptibility to government policies related to price and trading nature of operations: The entity deals in agro based commodities, and accordingly, it is subjected to the risks associated with the industry like susceptibility to vagaries of nature and price volatility. Further, MGS is also exposed to risk associated with the trading nature of business like inherently low profitability on account of low value addition. Partnership nature of constitution: Being a partnership firm, MGS is exposed to the risk of withdrawal of capital by partners due to personal exigencies, dissolution of firm due to retirement or death of any partner and restricted financial flexibility due to inability to explore cheaper sources of finance leading to limited growth potential. This also limits the firm's ability to meet any financial exigencies. Aurangabad (Maharashtra) based MGS established in September, 2017 is promoted by Mr. Kirti Parakh, Mr. Khusalchand Parakh and Mr. Paras Parakh. However, the entity commenced its operations since December 2017 and is engaged in the business of wholesale and retail trading of grains and pulses, rice, Fast moving consumer goods, crockery etc. METALINK: Ind-Ra Moves B on INR44.5MM Debt to Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Metalink's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR44.5 mil. Fund-based working capital limit migrated to non- cooperating category with IND B (ISSUER NOT COOPERATING) rating; -- INR5 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR17.5 mil. Proposed fund-based limit migrated to non- cooperating category with Provisional IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 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 2003, Metalink is a partnership firm engaged in manufacturing and export of fabricated steel products. MID INDIA: Ind-Ra Rates INR1-Bil. Term Loan Due 2033 'BB+' ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Mid India Creations LLP (MIC) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR1.0 bil. Term loan due on July 2033 assigned with IND BB+/Stable rating. Analytical Approach: Ind-Ra has factored in MIC's association with Indore-based C-21 group while arriving at the ratings. Both companies have common management. KEY RATING DRIVERS The ratings reflect MIC's medium scale of operations as indicated by revenue of INR219 million in FY18 (FY17: INR113 million). The growth in revenue was attributed to stabilization of hotel operations FY18 was the first full year of operations. The ratings are constrained by the company's weak credit metrics as indicated by low interest coverage (operating EBITDA/interest expense) of 0.5x in FY18 (FY17: 0.4x) and high net financial leverage (net adjusted debt/ operating EBITDA) of 16.2x (30.2x), driven by high debt and interest expense. However, the agency expects the credit metrics to improve from FY20 owing to its tie up with Sheraton brand for its hotel properties, effective 1 April 2019. The ratings factor in the firm's tight liquidity with debt service coverage ratio below 1.0x in FY19. Ind-Ra expects promoters to infuse equity of about INR100 million in FY19 and INR50 million in FY20 to meet its debt servicing obligations. However, the ratings benefit from MIC's association with Indore-based C21 Group, which has more than two decades of experience in the real estate and hospitality businesses, and favorable location of the hotel on the Indore bypass road with proximity to several upcoming residential and commercial projects. RATING SENSITIVITIES Positive: Successful ramping up of operations under the new brand, along with an improvement in the credit metrics will be positive for ratings. Negative: Delay in ramping up of operations under the new brand or deterioration in the credit metrics or liquidity profile, and/or weakening of linkages with C21 group would be negative for the ratings. COMPANY PROFILE MIC was incorporated as a limited liability partnership firm in October 2011. The hotel is operated and managed by The Grand Bhagwati Banquets & Hotels Ltd. under the TGB brand. The banquet property commenced operations in June 2015, while the hotel property was soft-launched in July 2017. M.P. Entertainment & Developers Pvt. Ltd. (represented by Shri Gurjeet Singh Chhabra), Rajesh Mehta and Riya Chhabra are the partners. MOSAVI ENTERPRISES: Ind-Ra Cuts Rating on INR960MM NCDs to 'BB+' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Mosavi Enterprises Private Limited's (Mosavi) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB-'. The Outlook is Stable. The instrument-wise ratings action is: -- INR960 mil. Non-convertible debentures (NCDs) due on August 9, 2022 ISIN INE280Y07017 coupon rate 1% issued on August 10, 2017 downgraded with IND BB+/Stable rating. Analytical Approach: Ind-Ra continues to take a consolidated view of Mosavi, Seaways Shipping and Logistics Limited (Seaways; 'IND BB+'/Stable) and the subsidiaries of Seaways to arrive at the ratings on account of operational, management and financial linkages among the entities. Mosavi is wholly owned by the promoters of Seaways. KEY RATING DRIVERS The downgrade reflects a similar rating action on Seaways, with which Mosavi has strong legal linkages. A cross-default clause is applicable to the debt raised by way of NCDs by Mosavi. Mosavi's debt (NCDs) has been secured by an 87.8% share pledge of Seaways. Any default by Mosavi in debt repayment would result in Seaways paying the part. Mosavi, which commenced commercial operations from September 2017, registered a revenue of INR68 million and an operating loss of INR5 million for FY18. It registered INR68 million in revenue and INR6 million in operating income of for 1HFY19. Mosavi does not have any other debts except NCDs. RATING SENSITIVITIES Negative: Any weakening of the linkages between Seaways and Mosavi, and any further rating downgrade for Seaways could lead to a negative rating action. Positive: A rating upgrade for Seaways may lead to a similar action for Mosavi. COMPANY PROFILE Incorporated in May 2017, Mosavi is engaged in material handling operations, transportation, and storage across ports. The company commenced commercial operations in September 2017. In addition, it leases equipment used for lifting cargo onto ships and unloading of cargo from ships, transport vehicles that move goods/cargo between ships and warehouses, and others. NEELKANTH YARN: Ind-Ra Cuts LT Rating on INR187MM Debt to BB ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Neelkanth Yarn's (NEEL) Long-Term Issuer Rating to 'IND BB' from 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR178 mil. Fund-based limit Long-term rating downgraded; short-term rating affirmed with IND BB/Stable/IND A4+ rating; and -- INR62 mil. Non-fund based limit affirmed with IND A4+ rating. KEY RATING DRIVERS The downgrade reflects the deterioration in NEEL's credit metrics to weak levels in FY18. The net financial leverage (total adjusted net debt/operating EBITDAR) deteriorated to 7.2x (FY17: 5.6x), as external borrowings increased to INR239.06 million (INR219.22 million) and EBITDA declined to INR32.85 million (INR37.63 million). The absolute EBITDA declined due to an increase in the cost of traded materials during the period. Also, the interest coverage (operating EBITDA/gross interest expense) saw only a slight improvement to 1.3x in FY18 (FY17: 1.1x) due to a decline in interest expenses. Moreover, the ROCE fell to 10% in FY18 (FY17: 13%) and the EBITDA margin stood at a modest 1.3% (1.9%) due to the trading nature of the business. The margin fell on a yoy basis because of the increased cost of traded materials. Additionally, the ratings reflect the worsening of the liquidity profile, as evident from two instances of overutilization of its fund-based limit up to two days during the 12 months ended January 2018. The firm's cash and cash equivalents stood at INR1.29 million at FYE18 (FYE17: INR1.84 million). Further, cash flow from operations remained negative at INR13.64 million in FY18 (FY17: negative INR18.94 million) on account of high working capital requirements. The ratings, however, are supported by the company's large scale of operations, as indicated by revenue of INR2,484.66 million in FY18 (FY17: INR 1,984.18 million). The revenue rose due to stable demand for cotton and yarn. Furthermore, the ratings continue to benefit from the promoters' experience of over 25 years of experience in the textile business. RATING SENSITIVITIES Negative: A significant decline in the EBITDA margin, leading to deterioration in the credit metrics and/or liquidity position, on a sustained basis, could lead to a negative rating action. Positive: A significant improvement in the revenue, coupled with an improvement in the EBITDA margin, leading to an improvement in the credit metrics, on a sustained basis, could be positive for the ratings. COMPANY PROFILE NEEL was established in 2009 as a partnership firm by Mr. Anil Rungta and Mr. Arun Aggarwal. The firm is engaged in the trading of various varieties of yarns, cotton and polyester fiber. NIK-SAN ENGINEERING: Ind-Ra Withdraws BB- on INR101MM Loans ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed and withdrawn Nik-San Engineering Company Limited's (NSECL) Long-Term Issuer Rating of 'IND BB-'. The Outlook was Stable. The instrument-wise rating actions are: -- The 'IND BB-' rating on the INR19.2 mil. Term loan due on September 2018 withdrawn (paid in full); -- The 'IND BB-' rating on the INR82.0 mil. Fund-based limits* affirmed and withdrawn; and -- The 'IND A4+' rating on the INR280.0 mil. Non-fund-based limits# affirmed and withdrawn. *Affirmed at 'IND BB-'/Stable/'IND A4+' before being withdrawn #Affirmed at 'IND A4+' before being withdrawn KEY RATING DRIVERS The affirmation reflects NSECL's continued small scale of operations as indicated by revenue of INR606 million in FY18 (FY17: INR491 million). The growth in revenue was attributed to highest order execution during the year. The company's return on capital employed was 14% in FY18 (FY17: 13%) and EBITDA margin was average at 8% (10.4%). The ratings continue to factor in NSECL's modest credit metrics as indicated by interest coverage (operating EBITDA/gross interest expense) of 1.4x in FY18 (FY17: 1.4x) and net financial leverage (total adjusted net debt/operating EBITDA) of 4.6x (4.2x). The deterioration in net financial leverage was due to a decline in EBITDA to INR48.25 million in FY18 (FY17: INR51.20 million), resulting from an increase in direct expenses. The company had a low cash balance of INR2.88 million at FYE18 (FYE17: INR17.70 million) on account of long inventory period of 149 days (138 days) and short payable period of 166 days (213 days). The cash flow from operations declined to INR13 million in FY18 (FY17: INR44 million) and free cash flow to INR11 million (INR41 million) owing to the decline in profitability. However, net working capital cycle improved to 89 days in FY18 (FY17: 103 days) on account of a decrease in a receivable period to 107 days (178 days). The ratings continue to benefit from the promoters' experience of over two and half decades in assembling of transformers. 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 in 2009, NSECL assembles distribution transformers at its manufacturing unit in Baroda, Gujarat, which has a total capacity of 27,000 units per annum. NITESH PUNE: CARE Moves 'D' on INR235cr NCD to Not Cooperating -------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Nitesh Pune Mall Private Limited (NPM) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-Convertible 235.00 CARE D; Issuer not cooperating; Debenture issue Based on best available Information Detailed Rationale & Key Rating Drivers CARE has been seeking information from Nitesh Pune Mall Private Limited (NPM) to monitor the rating(s) vide e-mail communications/letters dated October 5, 2018, November 1, 2018, December 31, 2018 and December 31, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Nitesh Pune Mall Private Limited's instrument will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings takes into account delay in interest payment of NCD on the due date. The liquidity of the company had remained tight due to continued low occupancy in the mall. Detailed description of the key rating drivers At the time of last rating on May 23, 2018 the following were the rating strengths and weaknesses. Key Rating Weaknesses Delay in interest repayment of NCD: The payment of interest of the rated NCD fell due on May 15, 2018 and October 25, 2018. Tight liquidity position of the company led to delay in servicing its debt obligation in a timely manner. The mall has a leasable area of 4.46 lsf and has commenced commercial operations from April 2012. As on June 17, the mall had occupancy level of 65%. However, the same were not adequate enough and the company had been incurring cash losses resulting in stressed liquidity position. Nitesh Pune Mall Private Limited (NPM) was incorporated in the year 2005 as Anuttam Developers P Ltd, promoted by Permindo Ltd. Cyprus (indirectly held by Elbit Imaging Ltd). Elbit Imaging Ltd was exiting Indian operation and decided to sell its stake in the Anuttam Developers Private Limited to Nitesh Estate Limited (Nitesh). NPM is engaged in the business of construction and development of commercial retail space and is operating and managing a retail mall called Nitesh Hub (previously known as The Koregaon Park Plaza) at Pune. The mall is developed on a plot area of 6 acre and has total leasable area of 4.46 lsft. The mall had commenced its commercial operation during 2012. OMKAR INFRACON: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Omkar Infracon 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 continue to be 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR17.1 mil. Long-term loan due on March 2022 migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; -- INR50 mil. Fund-based limits migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR15 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 28, 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 2010, Omkar Infracon started its commercial operations in August 2012. The company has a 143,000 metric tons fly ash brick plant near Kolaghat Thermal Power Plant in West Bengal. PANACEA BIOTEC: CARE Reaffirms D Rating on INR1,021.52cr Loans -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Panacea Biotec Limited (PBL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 959.55 CARE D Reaffirmed Short term Bank Facilities 61.97 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The rating reaffirmation for the bank facilities of PBL takes into account the delays in repayment of the debt obligations of the company. Going forward, the ability of the company to service its debt obligations in a timely manner with improvement in its liquidity position would remain the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Delays in servicing of debt obligations: The company has delayed in the servicing of the debt obligations on the instalments of its loan obligations on account of the weak liquidity position of the company. Weak financial risk profile: The Total income from operations increased to Rs 589.49 crore in FY18 from Rs 546.76 crore in FY17 due to increased sale of vaccine EasySix in the domestic market, sale of oral polio vaccine to Government of India and growth in the pharmaceutical formulations business. PBL has incurred loss of Rs 73.29 crore in FY18 as against a loss of Rs 73.43 crore in FY17. Overall gearing moderated to 2.62x as on 31st Mar 2018 as compared to 2.35x as on March 31, 2017. In H1FY19, total income from operations decreased to Rs 220.32 crore as against Rs 259.91 crore in H1FY18. Key Rating Strengths Experienced promoters and management team and long track record of operations: The Company has been in the pharmaceutical business since 1984 and has a long track record of operations of more than 30 years. The company is promoted by the Jain family headed by Mr Soshil Kumar Jain who has an experience of more than 50 years in the pharmaceutical industry. He is assisted by Dr Rajesh Jain and Mr Sandeep Jain in looking after the operations of the company. The senior management team of PBL comprises of well-qualified and experienced members. Panacea Biotec Limited (PBL) was incorporated in February, 1984 under the name of Panacea Drugs Private Limited (PDPL). In September 1993, it was converted into a public limited company and its name was changed to the present one. PBL is promoted by the Jain family headed by Mr. Soshil Kumar Jain and is one of the leading biotechnology companies in India involved in manufacturing of vaccines and pharmaceutical formulations. PBL has manufacturing facilities in Himachal Pradesh and Punjab for vaccines and pharmaceutical formulations complying with international regulatory standards of USFDA, UK-MHRA, and WHO-cGMP standards etc. PARADISE PROPERTIES: CARE Cuts Rating on INR25.60cr Loan to D ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Paradise Properties (PP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Bank 25.60 CARE D/CARE D; Issuer not Facilities cooperating; Revised from CARE BB-; Issuer Not Cooperating on the basis of best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from PP to monitor the ratings vide e-mail communications/letters dated January 12, 2019, January 16, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the ratings on the basis of the available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, PP has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The ratings on PP's bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The revision in the ratings of PP takes into account on-going delays in servicing of debt obligations. Detailed description of the key rating drivers Key Rating Weakness Irregularity in debt servicing: As per interaction with the banker there are on-going delays in debt servicing by the company. Jaipur (Rajasthan) based Paradise Properties (PP) was formed as a partnership concern in 2006 by Saboo family of Jaipur with three partners' viz. Mr. Pankaj Saboo, Mrs. Manjushree Saboo and Mr. Vinayak Saboo sharing profit and loss in the ratio of 50:30:20 respectively. PP is promoted by the Paradise Group (PG) of Jaipur which was formed by Late Mr. Sugan Chand Saboo. PG is engaged in the hotel business and construction of residential buildings, complexes, schools, colleges, industrial buildings, etc since 1954. PP is engaged in the hotel business and presently owns and operates a Hotel namely Hotel Paradise at Sikar Road which is 3.80 kms away from Jaipur with total 112 rooms of Deluxe, Executive and Club Categories. Besides, it has swimming pool, Ayurvedic massage center, multi-cuisine restaurant, bar, banquet hall of 7000 square feet (Sq Ft) and other recreation centers. Furthermore, the firm undertook a project for construction of Resort namely 'Paradise Pushkar' on the land measuring 42100 square meters (Sq Mtrs.) at Ajmer (Rajasthan) consisting of 80 rooms, restaurant-cum-bar of 120 persons capacity, Banquet Hall for 1500 persons, Health spa, swimming pool, Disco and other recreation facilities. The commercial operation of the resort has completed and commenced its operations from April, 2016. R.S. CORP: Ind-Ra Gives BB- LT Rating on INR32MM Debt ------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned R. S. Corporation (RSCORP) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR32 mil. Fund-based limits assigned with IND BB-/Stable/IND A4+ rating; -- INR30 mil. Non-fund-based limits assigned with IND A4+ rating; -- INR48 mil. Proposed fund-based limits* assigned with Provisional IND BB-/Stable/Provisional IND A4+ rating; and -- INR10 mil. Proposed non-fund-based limits* assigned with Provisional IND A4+ rating. *The ratings are provisional and shall be confirmed upon the sanction and execution of loan/transaction documents for the above facilities to the satisfaction of Ind-Ra. KEY RATING DRIVERS The ratings reflect RSCORP's small scale of operations as indicated by revenue of INR234 million in FY18 (FY17: INR195 million). The increase in revenue was on account of receipt of new orders. During 9MFY19, the company recorded revenue of INR135 million and had an order book of INR234.8 million, to be executed through FY19-FY20. The ratings also factor in the company's moderate credit metrics as reflected by interest coverage (operating EBITDA/gross interest expense) of 4.9x in FY18 (FY17: 4.6x) and net leverage (total adjusted net debt/operating EBITDA) of 2.8x (2.0x). The deterioration in net leverage was attributed to an increase in cash credit facility to INR32 million from INR25 million in February 2018. The ratings are also constrained by the firm's tight liquidity position as indicated by 81.8% average utilization of its fund-based limits during the 12 months ended December 2018. Cash flow from operations remained negative at INR13 million in FY18 (FY17: negative INR3 million), due to an increase in receivables. The ratings also reflect the partnership structure of the business. However, the ratings are supported by RSCORP's strong EBITDA margins, although declined to 5.3% in FY18 (FY17: 6.0%) due to an increase in direct expenses. The firm's return on capital employed was 19% in FY18. The ratings further benefit from the partners' experience of around two decades in the civil construction business. RATING SENSITIVITIES Negative: Any decline in the revenue, along with deterioration in the profitability margins, resulting in deterioration in the credit metrics would be negative for the ratings. Positive: A significant improvement in the revenue, along with a substantial improvement in the profitability margins, leading to any improvement in the credit metrics would be positive for the ratings. COMPANY PROFILE Established in 1994, RSCORP undertakes civil construction projects in Gujarat. Pravin M Patel and Daxaben Patel are the partners. R.S. GREEN: CARE Moves D Rating to Not Cooperating Category ----------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of R.S. Green Foods Private Limited (RGF) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 12.47 CARE D; Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from RGF to monitor the rating(s) vide letter dated December 24, 2018, emails dated December 21, 2018, December 21, 2018, December 18, 2018, December 7, 2018, November 16, 2018) and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on R.S Green Foods Private Ltd.'s bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into consideration delays in debt servicing on account of weak liquidity as the company is unable to generate sufficient funds on timely manner. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: There are ongoing delays in the repayment of the term loan obligation and there are instances of over utilization of overdraft limit for more than one month. R.S. Green Foods Private Limited (RGF) was incorporated in December 2011 and the operations of the company are currently being managed by Ms. Balwant Kaur and Mr Taman Raj. The company is engaged in processing as well as trading of paddy at its manufacturing unit located at Patiala, Punjab with total installed capacity of 36,000 metric ton per annum (MTPA), as on Sept. 30, 2017. The company also undertakes milling of rice for government and other private entities. RAVIRAJ HI-TECH: CARE Lowers Rating on INR15.47cr Loan to D ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Raviraj Hi-Tech Private Limited (RHPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 15.47 CARE D; Issuer Not Cooperating; Facilities Revised from Care B+; Stable, Issuer Not Cooperating Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated March 6, 2018, placed the rating of RHPL under the 'issuer non-cooperating' category as RHPL had failed to provide information for monitoring of the rating. RHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated February 05. 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating has been revised on account of continuous delays in debt servicing. Detailed description of the key rating drivers Key Rating Weaknesses Delay in debt servicing obligations: There are ongoing delays in repayment of principal and interest obligation of term loan facility and overdrawals in cash credit facility. Pune-based (Maharashtra) RHPL was incorporated in 2004. The company is engaged in manufacturing of precision engineering and auto components namely Switchgear Parts, Engineering Parts, Automobile Parts, Hydraulic Parts, and Process Industry Parts which are used in engineering sector, auto sector, hydraulic sectors and allied equipment. RRR CONSTRUCTIONS: Ind-Ra Migrates BB LT Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated RRR Constructions & Projects 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: -- INR35 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR42 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 23, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Set up in 2015, Hyderabad-based RRR Constructions & Projects is engaged in the construction of buildings and roads, and related maintenance services. SEAWAYS SHIPPING: Ind-Ra Lowers Long Term Issuer Rating to 'BB+' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Seaways Shipping and Logistics Limited's (Seaways) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB-'. The Outlook is Stable. The instrument-wise ratings actions are: -- INR250 mil. Non-convertible debenture (NCDs) due on August 10, 2021 ISIN INE286U07020 coupon rate 6.00% issued on September 8, 2017 downgraded with IND BB+/Stable rating; -- INR640 mil. NCDs due on August 10, 2022 ISIN INE286U07012 coupon rate 13.50%issued on August 11, 2017 downgraded with IND BB+/Stable rating; -- INR50 mil. Non-fund-based limits downgraded with IND A4+ rating; and -- INR250 mil. Fund-based limits assigned with IND BB+/Stable/IND A4+ rating. Analytical Approach: Ind-Ra continues to take a consolidated view of Seaways and its subsidiaries, along with Mosavi Enterprises Private Limited (Mosavi; 'IND BB+'/Stable), which is wholly owned by the promoters of Seaways, to arrive at the ratings on account of operational, management and financial linkages among the entities. KEY RATING DRIVERS The downgrade reflects Seaways' deteriorating consolidated operating performance mainly owing to a decline in the profitability levels of the freight forwarding segment and the non-vessel operating common carrier segment, due to a challenging trade and freight environment. Consolidated revenue marginally improved to INR7,069 million in FY18 from INR6,593 million in FY17. Meanwhile, consolidated operating margin declined to 2.3% in 1HFY19 and 6.8% in FY18 from 7.9% in FY17. On a standalone basis, Seaways registered a revenue of INR7,000 million for FY18 (FY17: INR6,593 million) and an operating income of INR482 million (INR522 million). Seaways registered INR5,326 million in revenue and INR165 million in operating income for 9MFY19. The ratings reflect deterioration in consolidated credit metrics in FY18. During the period, consolidated leverage and coverage deteriorated to 5.6x (FY17: 2.8x) and 1.74x (3.77x) , respectively, on account of a fall in operating income, a rise in working capital debt and an increase in debt due to the debt-funded acquisition of IDFC Alternatives' 24% stake in Seaways. In FY18, NCDs totalling INR890 million were raised by Seaways to repay existing debt and meet working capital requirements, while NCDs totalling INR960 million were raised by Mosavi to acquire IDFC Alternatives' stake in Seaways. The ratings also reflect a stretched liquidity of Seaways. Seaways' utilization of the working capital limits was almost full during the 12 months ended December 2018. The company is also using factoring facilities amounting to INR140 million to meet working capital requirements. The ratings further reflect by a cross-default clause applicable to the debt raised by way of NCDs by Mosavi. Any default by Mosavi in debt repayment would result in Seaways paying the part. The ratings, however, are supported by a recovery witnessed in consolidated operating margin in 3QFY19. The management expects the recovery to continue in the medium term in view of an improving trade environment. RATING SENSITIVITIES Negative: Any delay in equity event from the expected timeline and/or the inability of the group to maintain a cash interest coverage ratio (cash flow from operations + cash interest/cash interest) above 1.25x on a sustained basis could lead to a negative rating action. Positive: Timely execution of equity event, easing the liquidity pressure and leading to the consolidated net leverage reducing below 3.0x on a sustained basis, could lead to a positive rating action. COMPANY PROFILE Seaways Group, a Hyderabad-based logistics group, offers integrated logistics solutions with multi-modal capabilities across 130 countries through its own offices and/or strategic partners. The company reports its revenues under six business verticals (a) bulk cargo (b) freight forwarding (c) free trade and warehousing zones (d) non-vessel operating common carrier (e) offshore services and (f) projects. Seaways have an experience of over 29 years in providing integrated ocean logistics services in India. Its wholly owned subsidiary in Singapore, Maxicon Container Line Pte Ltd. , is a non-vessel operating common carrier. On a consolidated level, Seaways operates through 16,192 containers, around 60% of which are owned by its Singapore subsidiary and the group. SHRADHA AGENCIES: CARE Moves 'D' on INR28cr Loans to NonCooperating ------------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Shradha Agencies Private Limited (SAPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 28.00 CARE D; Issuer not cooperating; Facilities Based on best available Information Detailed Rationale & Key Rating Drivers CARE has been seeking information from SAPL to monitor the ratings vide e-mail communications/letters dated January 17, 2019, January 24, 2019 & January 28, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Shradha Agencies Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Shradha Agencies Pvt. Ltd.'s bank facilities will now be denoted as CARE D/CARE AD; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The ratings take into account the on-going delays in debt servicing arising out of stretched working capital cycle. Detailed description of the key rating drivers At the time of last rating on May 23, 2018 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies & interaction with the bankers): Ongoing delays in debt servicing: There are ongoing delays in debt servicing and the account has been reported as Non-Performing Asset by the bankers. Stretched working capital cycle in FY18: SAPL has high working capital requirement due to elongated operating cycle at 317 days in FY18. The average collection period and average inventory period were high at 107 days and 215 days respectively in FY18. Deteriorated financial risk profile in FY18: SAPL's operating income decreased by ~41.55% to INR39.57 crore in FY18. PBILDT margin also turned negative. The company reported gross cash deficit of INR8.72 crore in FY18 vis-à-vis gross cash accruals of INR 0.45 in FY17. The overall gearing of the company deteriorated from 2.20x as on March 31, 2017 to 3.71x as on March 31, 2018 due to depletion of net worth as a result of losses incurred in FY18. Shradha Agencies Pvt. Ltd. (SAPL) which was originally incorporated as a sole proprietorship firm in 1992 by the name of Shradha Agencies was later reconstituted as a private limited company in 1996. It is a part of the Shradha group of Kolkata which has been promoted by Late Dr. C. L. Arora during early 1970 with primary interest into trading and logistics. Currently, the company is being managed by Shri Rajeev Arora (son of Late Dr. C. L. Arora). The company currently functions as a distributor of FMCG products, Mobile handsets and accessories, Pens and Safety Matches across the state of West Bengal (WB). SHREE PARASHNATH: CARE Moves D Ratings to Not Cooperating --------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Shree Parashnath Re-Roolling Mills Ltd (SPRML) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 166.95 CARE D; Issuer not cooperating; Facilities Based on best available information Short-Term Bank 53.92 CARE D; Issuer not cooperating; Facilities Based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from SPRML to monitor the rating(s) vide e-mail communications/letters dated January 21, 2019,January 9, 2019, December 14, 2018,December 3, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Shree Parashnath Re-Roolling Mills Ltd has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Shree Parashnath Re-Roolling Mills Ltd's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of Shree Parashnath Re-Roolling Mills Limited (SPRML) takes into the on-going delays in servicing of debt. The ratings continue to be constrained by the low profitability, high overall gearing, working capital intensive operations with elongated operating cycle, intense competition, cyclical nature of industry and exposure to volatility in raw material prices. The ratings also take into account the diversified clientele of the company. Effective working capital management and ability to improve profitability amidst intense competition and volatile input prices remain the key rating sensitivities. Detailed description of the key rating drivers At the time of last rating on October 15,2018 the following were the rating strengths and weaknesses: Key Rating Weaknesses On-going delays: There are on-going delays in the servicing of SPRML's debt obligations. Low profitability: Operating income witnessed a y-o-y decline of 5% in FY17 due to decrease in sales realisations despite improvement in sales volume. PBILDT margin, however, improved from 3.74% in FY16 to 5% in FY17 due to better absorption of overheads on increase in capacity utilisation. The company continued to incur let loss despite improvement in operating profits due to heavy interest burden. However, the company achieved cash profit of INR0.37 crore in FY17 as against cash loss of INR3.26 crore in FY16. The interest coverage ratio also improved from 0.85x in FY16 to 1x in FY17 due to improvement in PBILDT. Elongated operating cycle: The operating cycle continued to remain stretched and increased further from 133 days in FY16 to 149 days in FY17 due to increase in average inventory and collection period. High overall gearing: The overall gearing ratio deteriorated from 1.83x as on Mar.31, 2016 to 2.20x as on Mar.31, 2017 with increase in borrowings (mainly unsecured loans for working capital) along with erosion of net worth due to loss. Intense competition and cyclical nature of the industry: SPRML is engaged in manufacturing and trading of billets, wire rods and structurals the industry of which is characterized by high fragmentation mainly due to presence of a large number of integrated steel players as well as unorganized sector players. Further, there are a number of small steel manufacturers and traders in the market with low level of product differentiation which results in very high competition leading to lower bargaining power vis-a-vis the customers. Accordingly, the profitability remains impacted. Volatility in raw material prices: Raw material expense is the major cost driver for SPRML forming about 73% of the total cost of sales for FY17. The raw materials are procured from open market at spot rates. This exposes the margins of the company to raw material price. Key Rating Strengths Diversified clientele: SPRML supplies structural products, wire rods & billets to leading developers, pipe manufacturers and steel manufacturers operating in Eastern region. Further, it is also an approved vendor for various PSUs. SPRML, incorporated in 2002, was promoted by two brothers, Mr. Anil Kumar Jain and Mr. Vipin Kumar Jain, of Durgapur. The company is presently engaged in manufacturing of Billets, Wire Rods and Structural products like Angles, Channels, Joists, H Beam, MS Flat, MS Round and MS Scrap with manufacturing facility located at Durgapur in West Bengal. The products are sold under "PARAS" brand. In July 2014, SPRML was referred to CDR. In November 2014, CDR cell approved the restructuring package of the company with effective date of July 1, 2014. SHRI RAM: CARE Lowers Rating on INR6.05cr LT Loan to D ------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Shri Ram Cold Storage and Chilling Centre (SRC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6.05 CARE D; Issuer not cooperating; Facilities Revised from CARE B+; Stable on the basis of best available information Detailed Rationale and key rating drivers CARE has been seeking information from SRC to monitor the rating vide e-mail communications/ letters dated February 4, 2019, February 2, 2019, January 16, 2019, December 25, 2018 and November 21, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on SRC's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating has been revised on account of ongoing delays in servicing the debt obligations. Detailed description of the key rating drivers Delays in debt servicing: There are ongoing delays in debt servicing due to stretched liquidity position. Kirawali (Agra, Uttar Pradesh) based SRC is a partnership firm and was established in May, 2017. The firm was set up with an objective to set up a cold storage unit in Agra. The firm is currently being managed by the partners Mr. Pramod Kumar, Mr. Udai Veer Singh and Mr. Virendra Kumar sharing profit and losses in the ratio equally. SRC is engaged in the business of renting of its cold storage facility for potatoes to the local farmers in Agra, Uttar Pradesh from its cold storage unit with multi chambers having storage capacity of 2,00,000 quintals as on February 28, 2018. SIDHI VINAYAK: CARE Maintains 'D' Rating in Not Cooperating ----------------------------------------------------------- CARE had, vide its press release dated November 27, 2017, placed the rating(s) of Sidhi Vinayak Rice Mills under the 'issuer non-cooperating' category as Sidhi Vinayak Rice Mills had failed to provide information for monitoring of the rating. Sidhi Vinayak Rice Mills continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 22, 2019 and January 10, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 4.14 CARE D; Issuer not cooperating; Facilities Based on best available information Short-term Bank 18.00 CARE D; Issuer not cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been reaffirmed by taking into account non-availability of requisite information and no due-diligence conducted due to non-cooperation by Sidhi Vinayak Rice Mills with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Detailed description of the key rating drivers At the time of last rating on November 27, 2017, the following were the rating weakness: The ratings take into account the ongoing delays in debt servicing obligations due to stressed liquidity position. Karnal-based (Haryana) SVRM established in July 2008, as a partnership firm by Mr. Rameshwar Das, Mr. Ashok Kumar, Mr. Suresh Kumar and Mr. Amit Kumar sharing profit and losses equally. The firm started its commercial operations in February 2009. The firm is engaged in milling and processing and trading of basmati rice. The firm procures paddy from Haryana and Uttar Pradesh and sells domestically in states like Uttar Pradesh, Haryana and Delhi. It also exports its product to Saudi Arabia, Iran, Yemman. SUPREETHA POULTRY: CARE Assigns B+ Rating to INR5.38cr Loan ----------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Supreetha Poultry Service (SPS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.68 CARE B+; Stable Assigned Facilities Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of SPS is primarily tempered by fluctuating scale of operations with thin PBILDT margins and declining PAT margins, weak- debt coverage indicators, working capital intensive nature of operations, highly fragmented and competitive business segment and risk associated to any outbreak of bird flu and other dieses and inherent risk of withdrawal of capital associated with proprietorship nature of business. However, the rating derives comfort from experience of the promoter for more than a decade in poultry business, moderate capital structure and positive demand outlook for the poultry industry. Going forward, the firm's ability to improve its scale of operations, profitability margins, debt-coverage indicators and manage its working capital requirements efficiently are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Fluctuating scale of operations with thin PBILDT margin and declining PAT margin: Though the firm is in operation for more than a decade, the scale of operations remains small and fluctuating during the review period marked by its TOI of 25.92 crore in FY18 with low networth base of INR 2.75 crores as of March 31, 2018. The operating income of the firm declined from Rs 34.25 crore in FY17 to INR 25.92 crore in FY18. The profitability margins also stood thin over the review periods, however, improved from 2.01% in FY17 to 2.88% in FY18 on account of better sales realization. Furthermore, the PAT margin declined from 0.42% in FY17 to 0.24% in FY18 on account of increase in interest cost owing to increased usage of working capital facility further to sanction of additional limits. Weak debt-coverage indicators: SPS reported weak debt coverage indicators marked by TD/GCA at 53.48x in FY18 as against 24.85x in FY17 due to increase in the debt profile coupled with decline in cash accruals earned by the firm. During FY18 the firm reported GCA of INR 0.10 crore (PY: 0.16 crore). However, the ability of the firm for servicing the interests towards the debts stood moderate, marked by its interest coverage ratio at 1.17x in FY18 although declined from 1.43x in FY17. Working capital intensive nature of operations: The working capital cycle days of the firm elongated at 77 days for FY18 (49 days for FY17) due to high inventory level of 70 days for FY18 (47 days for FY17). Furthermore, the credit policy of the firm with its customers and suppliers is agreed upon for up to 30 days. Apart from that the farm needs to be maintained cleanly to reduce insanitation and outbreak of diseases. The firm also spends on vaccinating the chicks on a regular basis. The labors are hired on contract and paid on a daily wage basis. All this leads to increased working capital utilization. As per the banker interaction, the average utilization of cash credit limits remained at 95% for the past 12 months period ended December, 2018. Highly fragmented and competitive business segment due to presence of numerous players and risk associated to any outbreaks of bird flu and other diseases: Indian poultry industry is largely unorganized with very few integrated players having presence across the value chain. The economics of the commercial poultry farming business is largely dependent on the realizations of eggs, broilers and the cost of feed. The prices of large integrated poultry players act as a yardstick for small poultry players like SPS. There is a risk of outbreak of diseases that could adversely affect the products of the project. When poultry is kept intensively, the risk of disease is very high for the mere reason that the birds are too close to each other. If proper vaccination programs are not followed the business could suffer major financial losses. It is important that a proper vaccination program is followed. The vaccination will minimize the threat of diseases. Personnel will ensure that the birds are monitored for diseases and that the chicken housing are kept clean and secure from other event risks. Inherent risk of withdrawal of capital associated with a proprietorship firm: The firm being a proprietorship firm is exposed to inherent risk of capital withdrawals by proprietor due to its nature of constitution. Any significant withdrawals from the capital account would impact the net worth and there by the entity's capital structure. Key Rating Strengths Experience of the promoter for more than a decade in poultry business: SPS was established in the year 2006 and is promoted by Mr B. Bhasker, the proprietor. He is a veterinary doctor and has more than a decade of experience in the poultry business. He takes care of the overall business and is directly involved in day to day operations of the firm. Due to long term presence in the market, the proprietor has good relations with suppliers and customers. Moderate capital structure: The debt profile of the firm includes significantly of working capital facility and term loan facility. The capital structure of the firm marked by overall gearing deteriorated and stood at 1.99x as on March 31, 2018 as compared to 1.60x as on March 31, 2017 due to increase in total debt facilities on account of increase in utilization of working capital facilities for managing day to day business of the firm. Positive demand outlook for the poultry industry: As per APEDA (Agricultural and Processed Food Products Export Development Authority), poultry is one of the fastest growing segments of the agricultural sector in India. The potential in the poultry sector is increasing due to a combination of factors-growth in per capita income, growing urban population and falling poultry prices. Also poultry meat is the fastest growing component of global meat demand, and India, one of the world's fastest growing countries is experiencing a rapid growth in its poultry sector. Liquidity analysis The company had total cash and bank balance amounting to INR 0.02 crore as on March 31, 2018. As of March 31, 2018 the current ratio of the firm stood satisfactory at 1.11x. As a result of high utilization of the working capital facility the average unutilized portion was around 5% which amounted to INR 0.25 crore (approx.) during last 12 months ended December 2018. Supreetha Poultry Service (SPS) was established in 2006 and is promoted by Mr B. Bhasker as a proprietorship firm. SPS is engaged in poultry services like hatching of eggs and trading of poultry feeds, medicine and vaccination to local poultry farms. SPS poultry farm has capacity to keep 2, 00,000 birds and manufacture of 540 tonnes of feed per month. SURAJ CROPSCIENCES: CARE Lowers Rating on INR17.57cr Loan to D -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Suraj Cropsciences Limited (SCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 17.57 CARE D; Issuer not cooperating; Facilities Based on best available Information; Revised from CARE BB-; Stable; ISSUER NOT COOPERATING Detailed Rationale & Key Rating Drivers CARE has been seeking information from SCL to monitor the ratings vide e-mail communications/letters dated January 24, 2019, January 30, 2019, February 4, 2019, February 5, 2019 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 rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on SCLs' bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating has been revised on account of the delays in debt repayments owing to weak liquidity position. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delay in debt servicing: SCL has been irregular in servicing its debt obligation due to weak liquidity position of the company. There has been overdue in servicing interest payment on working capital limits for more than 30 days as on February 05, 2019. Kalol-based (Gujarat) SCL, an ISO 9001:2008 certified company, was incorporated as a private limited company during January 2010 which was later on reconstituted as a public limited company in February 2015. Further, it got listed on the Institutional Trading Platform of National Stock Exchange of India Limited- Emerge in May 2015. SCL is headed by Mr. Shivpratapsingh Kushwaha and it is engaged into the business of developing and processing of varieties of agro-seeds including cereals, fibres, fodder, oil seeds, pulses and vegetables seeds. THAUSI EXPORTS: CARE Assigns 'D' Rating to INR5cr LT Loan --------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Thausi Exports, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.00 CARE D Assigned Facilities Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of Thausi Exports are tempered by the ongoing delays in servicing debt obligations, Small scale of operations with declining total operating income, Leveraged capital structure and weak debt coverage indicators, Highly competitive and fragmented trading industry, Constitution of the entity as a proprietorship firm, Working capital intensive nature of operations, Experience of the proprietor for more than three decades in the textile industry and Stable outlook for textile industry Going forward, ability of the firm to fully service its debt obligations on time. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in servicing debt obligations: There are ongoing delays in servicing the interest and instances of overdraws by more than 30 days for the packing credit facility availed by the firm due to a stressed liquidity position. Small scale of operations with declining total operating income: The scale of operations of the firm is relatively small, as marked by a total operating income of INR 6.09 crore in FY18 with low net worth base of INR 0.97 crore as on March 31, 2018. The TOI of the firm has been declining during the review period. The TOI of the firm has been decreasing year-on-year from INR 16.55 crore in FY16 to INR 6.09 crore in FY18 due to decrease in export sales. Leveraged capital structure and weak debt coverage indicators: The capital structure of the firm remained leveraged during the review period on account of high dependence on working capital bank borrowings as against a low net worth base. The overall gearing ratio was marked at 5.30x as on March 31st 2018. Further, the debt coverage indicators of the firm as marked by the TDGCA and PBILDT Interest Coverage ratio remained weak at 32.08x and 1.30x in FY18 respectively, on the back of high dependence on working capital bank borrowings and small scale of operations, resulting in low cash accruals. Highly competitive and fragmented trading industry: The firm operates in highly fragmented and competitive industry wherein the presence of large number of entities in the un-organized sector and established players in the organized sector limits the bargaining power with the customers. Furthermore, the firm is also exposed to competitive pressures from domestic players as well as from big, well established players from abroad. Constitution of the entity as a proprietorship firm: The proprietor typically makes all the decisions and led the business operations. If he became ill or disabled, there may not be anybody else to step in and maintain the optimum functioning of business. A business run by proprietor also poses a risk of heavy burden, i.e. an inherent risk of capital withdrawal, at a time of personal contingency which can adversely affect the capital structure of the firm. Moreover, the proprietorship firms have restricted access to external borrowing which limits their growth opportunities to some extent. Working capital intensive nature of operations: The firm has working capital intensive nature of operations as reflected in an operating cycle of 237 days in FY18. The firm had high receivables for the past three financial years ended March 31, 2018, on account of delay in inspections of the goods delivered. The firm's inventory holding period stood between 15-40 days on account of easy availability of raw material, which enabled the firm to place orders as and when required. The average utilization of the working capital bank borrowing for the past twelve months ended November 30, 2018 remained at 100%, with instances of overdraws in the packing credit facility. Key Rating Strengths Experience of the proprietor for more than three decades in the textile industry: The proprietor of the firm has more than two decades of experience in the trading of textiles. Over the years, Mr. K. Thulasilingam has established a clientele across Tamil Nadu. Stable outlook for textile industry: Indian textile industry is one of the largest industries in India. It is the second largest industry in terms of providing employment opportunities to more than 35 million people in the country. Indian Textile industry contributes to 7 per cent of industrial output in terms of value, 2 per cent of India's GDP and to 15 per cent of country's export earnings. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion. The size of India's textile and apparel market recorded USD 108.5 billion in 2015 and is expected to reach USD 226 billion by 2023, growing at a CAGR of 8.7 per cent between 2009 and 2023. India holds a strategic second position in the export of textile and clothing products in the world with a share of 5.55%. Liquidity Analysis The current ratio of the firm stood satisfactory at 1.02x as of March 31, 2018 due to relatively high account receivables and advances given for purchases as compare to account payables including working capital bank borrowings. The firm has investment in liquid assets with a cash and bank balance of INR 0.03 crore as on March 31, 2018. Thausi Exports was established as a proprietorship firm in the year 1986 under HUF status. The firm is engaged in trading and manufacturing of textiles in domestic and export market. The firm is dealing in all kind of fabrics, readymade garments, sarees and towels. The firm's registered office is located at D.no 8/1 A, Anna street, salem, Tamil Nadu 636001. TORQUE AUTOMOTIVE: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Torque Automotive 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: -- INR380 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 March 20, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2007, Torque Automotive is an authorized dealer of cars manufactured by Skoda Automotive India in Gujarat. The company has four showrooms and four service centers across the state. UNIPHOS INTERNATIONAL: Ind-Ra Affirms 'BB+' on INR30MM Loans ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Uniphos International Limited's (UIL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR30 mil. Fund-based facilities affirmed with IND BB+/Stable rating; and -- INR170 mil. Non-fund-based facilities affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects UIL's continued small scale of operations as indicated by revenue of INR235 million in FY18 (FY17: INR448 million). The declining revenue was attributed to lower execution of orders due to the ongoing geopolitical issues in African countries. For 9MFY19, the company achieved revenue of INR289.8 million. As of December 2018, it had an order book of INR140 million, to be executed by end-March 2019. The company's return on capital employed was 10% in FY18 (FY17: 14%) and EBITDA margin was modest at 12.8% (9.2%). Despite the revenue decline, the margin improved owing to an increase in sale of high-margin products. However, the ratings are supported by UIL's continued comfortable credit metrics as indicated by EBITDA interest coverage (operating EBITDA/gross interest expense) of 8.2x in FY18 (FY17: 4.7x). The improvement was on account of a decrease in debt and reduction in interest expenses. The company was had a net cash position in FY17-FY18. The ratings continue to benefit from the company's comfortable liquidity position. Its cash flow from operations was positive at INR58 million in FY18 (FY17: INR78 million) on account of better working capital management. As of January 2019, UIL had unutilized bank lines in the form of a packing credit facility of INR30 million, which provides liquidity cushion. The company's average utilization of the fund-based and non-fund-based facilities was 28% and 31%, respectively, during the 12 months ended January 2019. The ratings also remain supported by the prudent risk control measures adopted by UIL as its sales are concentrated in African and South American countries. However, the majority of sales are backed by letters of credit. In addition, UIL obtains export credit insurance from Export Credit Guarantee Corporation of India Ltd. in most transactions wherein sales are not backed by letters of credit. Moreover, the company follows conservative hedging policies to cover the risk of foreign currency fluctuations. RATING SENSITIVITIES Positive: A significant improvement in the scale of operations while maintaining a comfortable credit profile on a sustained basis may lead to a rating upgrade. Negative: A significant decline in the revenue or profitability, resulting in deterioration of the credit metrics or liquidity position on a sustained basis may lead to a rating downgrade. COMPANY PROFILE Incorporated in 1992, UIL is engaged in import and export of chemicals, agro products and engineering goods. UIL is a closely-held unlisted public limited company and an associate of the UPL Group. UIL's shareholding is divided between UPL Ltd (15.1%) and the promoters of the UPL group. VIJAYANT AGENCIES: CARE Moves B+ on INR10cr Loans to NonCooperating ------------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Vijayant Agencies Private Limited (VAPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 10.00 CARE B+; Stable Revised from Facilities CARE B+; Stable; ISSUER NOT COOPERATING Detailed Rationale& Key Rating Drivers The rating assigned to the bank facilities of VAPL continues to be constrained by its modest scale of operations with low profitability and low bargaining power with principal. The rating is further constrained by leveraged capital structure with weak debt coverage indicators and working capital intensive nature of operations. The rating, however, draws strength from the experienced proprietor, its association with reputed clientele and highly diversified product profile. Ability of the company to increase its scale of operations along with improvement in profitability and efficient management of working capital requirement are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Low bargaining power with principal: VAPL has a low bargaining power with the principals Samsung India Electronics Private Limited (Samsung), Marico Limited (Marico) and TATA Steel Limited (rated CARE AA; Stable, December 28, 2018) and may have to agree with any revised terms. Also, lack of pricing power against its principal further restricts the profitability of the company. Modest scale of operations: Revenue of the company decreased on y-o-y basis by 3.4% during FY18 however stood modest at INR110.87 crore. Moreover, the accretion to reserve was slow leading to low net-worth thus restricting financial flexibility of the entity. Thin profit margins: The profit margins of the company are low due to predominantly trading nature of operations. PBILDT margin increased in FY18, however remained low in the range of 1.54% - 2.12% in the last three years ended FY18. PAT margin of the company has shown a fluctuating trend and has been in the range of 0.16%-0.34% in the last three years ended March 31, 2018. Leveraged capital structure and weak debt coverage indicators: The relatively low net worth base of the company led to increased reliance on external debt to support its business operations. The capital structure of the company stood moderate as marked by overall gearing ratio of 8.53x as on March 31, 2018.Further, debt coverage indicators of the company are weak led by low profit margins and high dependence on external borrowings due to working capital intensive nature of business. Working capital intensive nature of operations: The operations of the company are moderately working capital intensive in nature with gross current assets of 67 days with funds majorly blocked in inventory. The working capital requirements of the company are met by the cash credit facility, the utilization of which remained high. Key Rating Strengths Long track record of entity with experienced promoters: VAPL has a track record of more than a decade and has reinforced its footing in the multi brand distribution of diversified products with sound base. VAPL is promoted by the Kabra family. The promoters have an experience of more than a decade each in the industry thereby leading to strong relationships with the customers as well as the suppliers. Association with reputed brands: VAPL is the distributor of Samsung, Marico, Jockey and TATA for major districts in North Maharashtra. Further, the company has recently taken dealership of Page Industries (Jockey) in February 2017 for the Jalgaon district in Maharashtra. Highly diversified product profile: The company is a multi-brand distributor with highly diversified product profile comprising of Mobiles and accessories, TMT Rebars, fast moving consumer goods (FMCG), personal care products and ready-made clothes in the state of Maharashtra thus mitigating risk of lower demand from one particular product segment. VAPL was incorporated in the year 2004 and is engaged into multi brand distribution with highly diversified product profile comprising of Mobiles and accessories, TMT Rebars, fast moving consumer goods (FMCG), personal care products and ready-made clothes in the state of Maharashtra. The company has ventured into grading and processing of food grains majorly chick peas and various dals since FY16. The company is also engaged in manufacturing of plastic water tanks in the range of 300 litres to 2000 litres. VIVASWAN HOTELS: CARE Reaffirms 'B' Rating on INR12.34cr Loan ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Vivaswan Hotels (India) Private Limited (VHIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 12.34 CARE B; Stable Reaffirmed Facilities Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of VHIPL is primarily constrained on account of modest scale of operations in the highly competitive and cyclical hotel industry along with lower occupancy rate and average room rate. The rating is, further, constrained on account of thin profitability margins and stressed liquidity position. The rating, however, derives strength from the experienced and resourceful promoters in the hotel industry, location advantage and comfortable capital structure. Ability of VHIPL to increase its scale of operations while maintaining profitability in highly competitive hotel industry is the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Modest scale of operations along with thin PAT margins and moderate liquidity position: Owing to continuous decline in occupancy ratio, the scale of operation of the company has continuously declined during past three financial years ended FY18. During FY18, Total Operating Income (TOI) remained modest at INR9.35 crore, declined by 9.23% over FY17 owing to decline in occupancy level as well as average room rent (ARR). During FY18, average occupancy level stood at 47.00% as against 48.25% in FY17 while ARR declined from INR2871 in FY17 to INR2659 in FY18. The profitability margins of the company remained comfortable marked by PBILDT and PAT margin of 23.12% and 2.09% respectively in FY18. During FY18, GCA level has declined by 22.22% over FY17 and has registered INR1.33 crore. Till January 29, 2019, the firm has registered turnover of 6.00 Crore. Key Rating Strengths Experienced management: The overall affairs of the company are managed by Mr. Ashok Singh and Ms. Rajesh Rani Singh, both have more than two decade of experience in this industry. Mr. Ashok Singh and Ms. Rajesh Rani Singh look after overall activities of the company. Strategic location of the hotel: The Central Park is located at Gwalior and known for its palaces and temples. There are many tourist attractions like Gwalior Fort, Gujari Mahal, Jai Vilas Mahal, Sun City, Sas- Bahu Temple, Moti Mahal etc. Gwalior is surrounded by some very good tourist destination like- Agra, Shivpuri, Datia Fort, Sonagiri Jain temple, National Chambal Sanctuary. Comfortable PBILDT margins and capital structure: During FY18, PBILDT margins of the company stood comfortable at 23.12% declined by 19 bps over FY17 mainly on account of increase in other expenses. The solvency position of the company stood comfortable as indicated by overall gearing of 0.78 times as on March 31, 2018, improved from 0.89 times as on March 31, 2017. Further interest coverage ratio also stood moderate at 2.70 times in FY18 as against 2.54 times in FY17 mainly on account of lower interest charges. Gwalior (Madhya Pradesh) based Vivaswan Hotels (India) Private Limited (VHIPL) was incorporated in August, 1996 by Mr Ashok Singh and Ms Rajesh Rani Singh with an objective to set up a hotel at Gwalior. VHIPL operate three star hotels in the name of 'The Central Park,' hotel which has 101 rooms including 76 Executive rooms, 16 Premium rooms and remaining Suites. It provides amenities like swimming pool, Wi-Fi internet, Fitness Centre, Travel assistance, Business Centre, Massage Chair in Grande Suit Room, Exclusive handicapped room for disabled person, Banquette and Conference Room. ===================== N E W Z E A L A N D ===================== COOK ISLANDS: S&P Affirms 'B+/B' Sovereign Issuer Credit Ratings ---------------------------------------------------------------- S&P Global Ratings, on Feb. 28, 2019, affirmed its 'B+/B' sovereign issuer credit ratings on Cook Islands. The outlook remains stable, and the transfer and convertibility assessment remains 'AAA'. OUTLOOK S&P said, "The stable outlook reflects our expectation that strong tourism will continue to support the economy, debt levels will remain low, and Cook Islands' enduring relationship with New Zealand will offset weak political and institutional settings as well as data deficiencies. "We could raise the rating over the next 12-18 months if there is an important improvement in data disclosure and quality, leading to increased transparency and timeliness of the external, economic and fiscal accounts." The rating could come under downward pressure over the same period if the tourism sector substantially weakens, or if the government's commitment to uphold past fiscal gains through changes to economic or fiscal policies weakens. These scenarios would result in worse fiscal balances, and debt rising significantly more than S&P currently expects. RATIONALE S&P's ratings on Cook Islands reflect the vulnerabilities associated with its weak institutional framework, limited monetary policy flexibility, and a narrow economic base that suffers from heavy emigration. These factors are partly offset by the government's supportive relationship and high labor mobility with highly rated New Zealand, the sound outlook for its key tourism sector, low borrowings, financial and technical assistance from donor agencies, and the country's insulated financial system. The ratings are further constrained by weak data disclosure and frequent revisions. The country is lagging in its publications of consolidated audited government financial statements. Gross domestic product (GDP) outcomes are regularly revised markedly. There are similar shortcomings in balance of payments and external data. In addition, there is a lack of transparency in the activities of statutory authorities and other government-controlled entities. --Weak policymaking culture and institutional settings constrain rating, while economic prospects continue to be sound-- -- Weak policymaking culture and institutional settings constrain the ratings -- The strong tourism sector supports economy, while high emigration rates constrains growth The vulnerabilities associated with the country's weak policymaking culture and institutional settings are a key ratings constraint. The 2018 election continued the historical political fragmentation and uncertainty, with no majority government as yet. Another by-election is scheduled to take place on March 18, 2019. The country remains at risk of policy shifts driven by populist sentiments that have hampered previous development and much-needed reform efforts. Shortages of skilled labor continue to weigh on institutional capacity, though the government is attempting to fill this void. The policymaking settings are supported by a vigorous free press, an outspoken business community, and by efforts by major aid donors to promote sound financial and economic policies and stronger administration. Cook Islands also benefits from a close and comprehensive political, economic, defense, and foreign-policy relationship with New Zealand. A large Cook Islands diaspora resident in New Zealand and Australia supports close ties with those countries. The security environment is good and the judicial system is robust. Cook Islands' income is high compared with that of its peers, with GDP per capita estimated at US$29,200 in 2019. S&P projects Cook Islands' real per capita GDP growth will average 3.9% during 2019 to 2021, which partly reflects further expected decline in its population rather than an underlying economic improvement. High emigration has seen the residential population falling substantially during the past two decades, reflecting Cook Islanders' access to the New Zealand labor market, education, and healthcare systems. The narrow-based economy is vulnerable to cyclones and changing preferences on its major revenue earner, the tourism industry. S&P expects moderate further increases in tourist arrivals to support economic growth, with tourism remaining the country's primary economic activity. The strong New Zealand economy, the source of about 65% of tourists, and additional international flights continue to benefit tourism to the islands. Cook Islands still faces competition from other Pacific islands, particularly for Australian tourists, which account for more than 15% of the country's tourists. S&P equalizes the local currency rating with the foreign currency rating, reflecting Cook Islands' absence of monetary policy flexibility and a domestic capital market, and its use of the New Zealand dollar. The transfer and convertibility assessment for Cook Islands is 'AAA', which also reflects its use of the New Zealand dollar. -- Solid fiscal and debt profiles, but lack of monetary policy and shortcomings in data weigh on ratings -- The potential improvement of data availability will assist in our analysis of the economy, external accounts, and financial system -- Solid fiscal performance and low debt levels because of under execution of basic infrastructure support tourism and economic growth Poor coverage and the timeliness of statistical releases are key factors that restrict a robust analysis of Cook Islands' economic and external accounts. S&P said, "We therefore assess the Cook Island's external position in accordance with our criteria for sovereigns with limited external data. We consider New Zealand as the host country and use our assessment of its initial external position as a starting point. We then apply a negative adjustment because of the uncertainty arising from external data gaps. The data shortcomings could improve during the next few years because the International Monetary Fund is scheduled to undertake its inaugural review of the Cook Islands' economic and external accounts later this year." A sustained improvement in data transparency and timeliness would facilitate better comparisons with rating peers and could boost the sovereign's credit rating. Additionally, the government has taken steps toward improving the timeliness of its consolidated fiscal reports, including the 2019 target of auditing three years of financial accounts. As part of its Public Sector Expenditure Review, the government is implementing a government-wide financial tool--the Integrated Financial Management System---to enable reporting across departments to be provided on a more timely basis. S&P said, "We expect general government debt to average about 19% of GDP during 2019-2021, and the increase in net general government debt to average 4.1% of GDP during 2019 -2021, helped by lower borrowing levels and larger holdings of liquid assets reflecting weaker-than-expected execution of major infrastructure projects. Weaker-than-expected capital expenditure also supports the government's fiscal position, as does a large one-off increase in grants during 2018. However, delays in the delivery of some of the capital projects weigh on the country's fiscal position going forward. These infrastructure projects, such as an undersea cable and water infrastructure project Te Mato Vai, are funded by official lending and grants, and support the tourism sector prospects and the economy. We forecast the government's fiscal balances will remain broadly in balance over the next few years. We expect revenues will decline after 2018 as official grants and capital requirements reduce." The concessional and long-term nature of current government borrowings, as well as the government's low debt, mean that the ratio of the general government interest expenditure to revenues is low; S&P estimates it to average about 1% of revenues during 2018 and 2020. Typically, borrowings are over 20 years to maturity. However, depreciation of the New Zealand dollar would adversely affect its debt-servicing costs because about two-thirds of this debt is exposed to foreign-currency movements. The country's monetary policy flexibility is diminished because of the absence of a central bank and its use of the New Zealand dollar. This arrangement means it forfeits monetary independence, which is an important lever for promoting economic and financial stability. That said, its use of the New Zealand dollar has enabled the Cook Islands to benefit from lower inflation than its peers. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Cook Islands Sovereign Credit Rating B+/Stable/B Transfer & Convertibility Assessment Local Currency AAA ===================== P H I L I P P I N E S ===================== HANJIN SHIPBUILDING: China Eye on Subic Bay Sets Off Alarms ----------------------------------------------------------- Amanda Hodge at The Australian reports that Chinese interest in buying the bankrupt Philippines subsidiary of South Korean shipbuilder Hanjin - and by extension a strategically sensitive port on the South China Sea - has raised alarm bells as Beijing's footprint over maritime Southeast Asia continues to expand. According to the Australian, concerns were first raised last month after Hanjin Heavy Industries and Construction filed for bankruptcy over its shipbuilding enterprise on Subic Bay which, until 1992, was home to America's largest overseas naval base and remains one of Southeast Asia's most important deep water ports. Expressions of interest from at least two Chinese companies, one state-affiliated, sparked a public backlash and opposition from The Philippines military which is now lobbying for a bailout -involving the navy and a consortium of Philippines companies, the report says. "This is a very significant national security issue! The ownership of Hanjin shipyard in Subic Bay will give the owners unlimited access to one of our most strategic geographic Naval and Maritime assets," former navy chief Alexander Pama wrote last month of the proposal, The Australian relays. "Nothing can prevent the owners from making it into a de-facto Naval base and a maritime facility for other security purposes." Subic Bay is where Australian, Japanese and US warships dock in The Philippines, and the port plays annual host to the US-Philippines Balikatan military exercises which now includes Japan, Australia and Britain, The Australian discloses. It is 100 nautical miles from Scarborough Shoal, the contested land mass central to Manila's 2016 victory in a UN arbitration that found no basis for Beijing's claim over most of the South China Sea, home to some of the world's busiest shipping lanes. Beijing has forged ahead nonetheless with its militarisation of contested reefs and shoals, according to The Australian. "The Philippines military are very much following this with interest and the bottom line for them is 'anyone but the Chinese'," security analyst Richard Heydarian told The Australian. "The Chinese would argue they're running ports all over the region from Sri Lanka to Darwin, but clearly The Philippines concern is very much about Hambantota. It's a little bit fanciful to think the Chinese would not look beyond commercial logistics purposes." The Australian says Hambantota is the Sri Lankan port on the edge of the South China Sea that Colombo was forced to hand over to Chinese interests last year under a 99-year lease agreement to service out-of-control debt on loans taken under the previous Rajapaksa regime. The deal has become a cautionary tale of the so-called debt trap diplomacy smaller countries can fall victim to by accepting infrastructure loans from Beijing. The Australian notes that a Chinese takeover of the Hanjin business makes, at least, commercial sense given China is the world's leading ship builder and its companies are involved in the construction and operation of more than 40 ports across 34 countries under its Belt and Road Initiative. In recent days, Manila has revealed a further four foreign groups, not Chinese, have expressed interest in Hanjin. But Jay Batongbacal, director of Philippines University's Institute for Maritime Affairs and Law of the Sea, said that did not rule out a successful Chinese bid as the "liquidator's primary mandate is to give relief to creditors," The Australian relays. "If relief can come from finance provided by a Chinese company I don't think the receiver will be able to refuse that offer." The Australian adds that Malcolm Cook, a senior fellow at Singapore's ISEAS-Yusof Ishak Institute, said the prospect of Chinese control over Subic Bay will likely be raising hackles in Japan and Australia. An editorial in the Japan Times called for Tokyo to provide more assistance to Manila, warning "a Chinese-run shipyard would afford Beijing an intelligence bonanza or, worse, that the initial investment would open the door to a bigger presence". China is The Philippines' biggest trading partner following a move away from the US by President Rodrigo Duterte. According to The Australian, Mr. Heydarian said Beijing's increased economic presence in The Philippines was lending credence to fears it was pursuing an "economic cabbage strategy" in which Chinese-owned entities gradually surround and dominate strategically important areas. Last month The Philippines Senate blocked Chinese involvement in a $400 million project to set up 12,000 surveillance cameras in Manila and Davao. Korea-based Hanjin Heavy Industries & Construction Co. established a shipyard in Subic, west of Manila, and delivered its first vessel from the yard in July 2008. It uses the Philippine yard to build big ships while its facility in Korea focuses on smaller vessels. Hanjin Heavy Industries and Construction Philippines, Inc. (HHIC-Philippines) filed for voluntary rehabilitation on Jan. 8, 2019, at the Olongapo City Regional Trial Court amid "heavy" financial losses and debts amounting to about $400 million from local banks. The company reported that it also had $900 million in debts with lenders in South Korea. The Subic shipyard's assets have been valued at KRW1.84 trillion (US$1.64 billion). HHIC-Philippines employs about 4,000 people. ================= S I N G A P O R E ================= ATTILAN GROUP: Unable to Meet Fund Investor's SGD2 Million Put -------------------------------------------------------------- The Strait Times reports that Attilan Group is unable to redeem SGD2 million of preference shares in its TAP Venture Fund I (TAPVF) after another investor in the fund exercised a put option, the company said on Feb. 28 after the market closed. Attilan, a listed investment firm, has until June 1, 2019 to complete the redemption. The company said it will engage the investor for a settlement, the report relates. This is the second round of put redemptions that the company is facing on TAPVF this year, the Strait Times says. On Jan. 14, 2019, three TAPVF investors exercised their put options for SGD5 million of redemptions. Attilan was also unable to meet those redemptions, and sought to reach a settlement with those investors. Those redemptions must be completed by April 1, 2019. According to the report, Attilan granted the put options to 11 investors between January 2013 and April 2014. The company has not said what its potential exposure could be if all the other investors exercised their options. Shares of Attilan are currently suspended. It last traded at SGD0.002 on June 21, 2018, the report notes. Attilan Group Limited, an investment holding company, engages in the investment management activities in Singapore and Malaysia. The company operates through three segments: Investment Management, Media Sales, and Pre-school. The Investment Management segment provides fund management, private equity, and investing services. The Media Sales segment produces and distributes media related services and products. The Pre-school segment offers infant care and child care services. The company was formerly known as Asiasons Capital Limited. GS HOLDINGS: Full-Year Net Loss Narrows to SGD3.55MM in 2018 ------------------------------------------------------------ The Strait Times reports that lower cost of sales and administrative expenses, as well as additional government grants helped GS Holdings narrow its full-year net loss even as revenue fell, the centralised dishwasher firm announced on Feb. 26. The Strait Times relates that for the 12 months ended Dec. 31, net loss shrank by 8 per cent to SGD3.55 million from a net loss of SGD3.85 million in the year-ago period. This translated to a loss per share of 2.69 cents, from a loss per share of 2.91 cents last year. The counter last traded at 25.5 cents apiece on Feb. 21, the report relays. No dividend has been declared, unchanged from the preceding year, the report notes. The Strait Times adds that revenue fell 15 per cent to SGD8.45 million from SGD9.92 million a year earlier. This comes as certain coffee shops did not renew their contracts after their initial contacts expired, and there were sales returns from customers. In addition, certain sales rebates were granted to customers, and a key customer with an average monthly sales of SGD45,000 went into liquidation in September last year, the company said. Overall, cost of sales fell by about SGD1.5 million, mainly attributable to a decrease in revenue, as well as restructuring exercises undertaken by the group, said GS Holdings, the Strait Times relays. Administrative expenses also fell - by SGD167,000 - mainly due to the resignation of some management and office staff as a result of the restructuring. Separately, other income rose by about SGD188,000 due to additional government grants and incentives received in FY2018, the company said, the Strait Times discloses. Looking ahead, GS Holdings expects the opening of Changi Airport's Terminal Four and the upcoming Jewel project to boost revenue contributions for FY2019. According to the report, GS Holdings also signed a letter of acceptance on Feb. 13 to provide centralised dishwashing and table cleaning services to Marine Parade Central hawker centre from May onwards. The project includes 50 hawker stalls, and will increase the group's revenue for the next fiscal year, it said. The company also announced last month a joint venture to expand into the food and beverage business, the report adds. GS Holdings Limited provides commercial dishware washing and cleaning services in Singapore. It offers on-site cleaning and stewarding services; centralized dishware washing services; and cleaning and dishware washing consultancy services, as well as sells dishware washing related equipment and consumables. The company also provides landscape care and maintenance services; rents equipment/machinery and tangible goods; undertakes dishwashing machines and other equipment installation. ================= S R I L A N K A ================= PEOPLE'S LEASING: S&P Withdraws 'B' Issuer Credit Ratings --------------------------------------------------------- S&P Global Ratings withdrew its 'B' long-term and 'B' short-term issuer credit ratings on People's Leasing & Finance PLC (PLC) at the company's request. The outlook on the long-term rating was stable at the time of the withdrawal. PLC is a Sri Lanka-based finance company. At the time of the withdrawal, the rating on PLC reflected the company's status as a core subsidiary of People's Bank group, and was equalized with the group's credit profile. ********* 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 ***