/raid1/www/Hosts/bankrupt/TCRAP_Public/140414.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
Monday, April 14, 2014, Vol. 17, No. 73
Headlines
A U S T R A L I A
GOLDEN HERITAGE: Golf Course Up for Sale
NEW BOUNTY: BRI Ferrier Appointed as Administrators
SCAFFWELD MT. ISA: Foremans Business Appointed as Administrator
SEIZA AUGUSTUS 2007-1: S&P Affirms B- Rating on Class D Notes
WOODHEAD PTY: In Liquidation Following Acquisition by GHD
C H I N A
SUNTECH POWER: Has Cooperation Agreement With Wuxi Suntech
* CHINA: Importers Default on Soy Cargoes Amid Losses
I N D I A
A.B RICE: ICRA Reaffirms 'B' Rating on INR6cr Cash Credit
AARTI CONSTRUCTION: ICRA Assigns 'B+' Rating to INR3cr Loans
ALANKAR ALLOYS: CRISIL Cuts Rating on INR420MM Loans to 'B+'
AMBUJA PIPES: ICRA Assigns 'B' Rating to INR2.36cr Term Loans
CENTURION LABORATORIES: ICRA Puts 'B' Rating on INR13.25cr Loan
D.S. TEXTILES: ICRA Downgrades Rating on INR10cr Loans to 'D'
DASHMESH AGRO: ICRA Reaffirms 'B' Rating on INR17.85cr Loan
DIVYALAKSHMI TEXTILES: ICRA Keeps B- Rating on INR45.9cr Loan
EXOTICA CERAMIC: ICRA Reaffirms 'B+' Rating on IRN8.09cr Loans
FABULLA CERAMICS: ICRA Cuts Rating on INR5.80cr Loans to 'D'
GHODAWAT ENTERPRISES: ICRA Assigns 'B+' Rating to INR36.7cr Loan
GOPINATH ENTERPRISE: ICRA Cuts Rating on INR4.76cr Loans to 'B+'
HOTEL RANG-INN: CRISIL Downgrades Rating on INR140MM Loans to 'D'
ICFAI UNIVERSITY: ICRA Assigns 'B+' Rating to INR11cr Loan
ICON CABLES: ICRA Reaffirms 'B+' Rating on INR4.80cr Loan
KISH EXPORTS: ICRA Reaffirms 'B' Rating on INR10cr Loan
M L RICE: ICRA Reaffirms 'B+' Rating on INR20cr Loan
P&R ENGINEERING: ICRA Revises Rating on INR26.77cr Loan to 'D'
P&R GOGARIPUR: ICRA Reaffirms 'D' Rating on INR13.41cr Term Loan
PATNI PULSES: ICRA Assigns 'B' Rating to INR8.50cr Cash Credit
PRASHANTI LAND: ICRA Suspends 'B-' Rating on INR17.75cr Term Loan
PRIME COMFORT: ICRA Reaffirms 'B+' Rating on INR34.80cr Loans
RAJASTHAN ISPAT: ICRA Reaffirms 'B+' Rating on INR25cr Loan
RAVINDRA RICE: ICRA Reaffirms 'B+' Rating on INR12cr Loan
RELIANCE INDUSTRIAL: ICRA Reaffirms B- Rating on INR10.5cr Loans
RUBY BUS: ICRA Downgrades Rating on INR47.99cr Loans to 'B'
S D RICE: ICRA Reaffirms 'B' Rating on INR12cr Loan
SARASWATI BINDERS: ICRA Suspends 'D' Rating on INR8cr Loans
SHARE MICROFIN: ICRA Lowers Rating on INR253.18cr Loans to 'D'
SHIVAM COTTON: CRISIL Reaffirms 'B' Rating on INR52MM Loans
SILKTEX LIMITED: ICRA Suspends 'D' Rating on INR16.84cr Loans
SMT. VISHNU: ICRA Reaffirms 'D' Rating on INR8cr Term Loan
SODHI BROTHERS: ICRA Ups Rating on INR22.60cr Loan to 'C'
SREEPATHY TRUST: CRISIL Assigns 'B' Rating to INR90MM Loans
SRI VENKATESWARA: ICRA Lowers Rating on INR9.5cr Loans to 'D'
STAARLIGHT DESIGNS: CRISIL Assigns 'B+' Rating to INR60MM Loans
N E W Z E A L A N D
KING TOYOTA: Car Dealership Placed in Receivership
- - - - -
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A U S T R A L I A
=================
GOLDEN HERITAGE: Golf Course Up for Sale
----------------------------------------
Sarah Danckert at The Australian reports that Heritage Golf Course
in Melbourne's Chirnside Park is on the market with a potential
price tag of over AUD31.5 million.
Heritage Golf is one of Australia's best golf courses that is at
the centre of a bitter battle between two of China's richest men,
Sunny Sun and Wang Hua, the report notes.
The Australia relates that the sale process for the Heritage
Estate comes after Mr. Sun's company Golden Heritage Golf was
placed into receivership earlier this year.
On offer are shares in Heritage Golf and Country Club, St John
Golf Course, Henley Golf Course, the Health Spa and Resort and the
Club House and Pro Shop. Swaths of land surrounding the golf
course are also up for grabs, according to The Australian.
The Australian, citing minutes of a creditors' meeting last month,
discloses that Golden Heritage Golf has ascribed a value of
AUD31.5 million to the land. The report relates administrator
Hamish MacKinnon said the value "appeared to be not justified by
any valuation".
Creditors are owed AUD13.8 million according to a separate report
prepared by liquidator Petr Vrsecky, The Australian notes.
NEW BOUNTY: BRI Ferrier Appointed as Administrators
---------------------------------------------------
Peter Paul Krejci -- peter.krejci@briferriernsw.com.au -- and
Brian Raymond Silvia -- BrianRaymond.Silvia@briferriernsw.com.au -
- at BRI Ferrier were appointed as administrators of New Bounty
Pty Limited on April 4, 2014.
A first meeting of the creditors of the Company will be held at
Level 30 'Australia Square' 264 George Street, in Sydney, on
April 16, 2014, at 11:00 a.m.
SCAFFWELD MT. ISA: Foremans Business Appointed as Administrator
---------------------------------------------------------------
Todd William Kelly -- tkelly@foremansba.com.au -- at Foremans
Business Advisors was appointed as administrator of Scaffweld Mt.
Isa Pty Ltd on April 7, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Foremans Business Advisors Qld, Suite 1, 29 Lake
Street, in Cairns, Queensland, on April 17, 2014, at 10:00 a.m.
SEIZA AUGUSTUS 2007-1: S&P Affirms B- Rating on Class D Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on the
class D and class E notes issued by the trustee of Seiza Augustus
Series 2007-1 Trust.
The notes are backed by a portfolio of residential and small-
ticket commercial mortgage loans originated by Seiza Mortgage Co.
Pty Ltd. The rating affirmations reflect S&P's view that the
rated notes are able to withstand stresses that are commensurate
with their current rating levels.
The notes are performing within S&P's current rating expectations,
based on its latest review of the transaction. The class D notes
have benefited from an increase in credit enhancement as a
proportion of the outstanding balance as the portfolio amortizes,
and due to some recovery of losses from previously charged-off
loans.
While arrears have improved in recent times, the concentration of
borrowers within the pool is high, with the top 10 borrowers
accounting for about 50% of the portfolio as of March 28, 2014.
The total portfolio consists of 57 loans, and the transaction is
increasingly susceptible to arrears and losses as the pool
continues to amortize and borrower concentration increases.
The transaction is currently highly susceptible to yield strain,
exacerbated by ongoing legal costs associated with the recovery of
losses on defaulted loans. The risk of yield strain is likely to
be ongoing due to unreimbursed losses creating a mismatch between
assets and liabilities, and the weighted-average margin payable on
the notes increasing as the class D notes amortize.
As of March 28, 2014, cumulative net losses total A$27.23 million
(6.6% of the original portfolio balance). Excess spread generated
from this trust has only covered A$17.6 million of net losses.
S&P believes the portfolio might record further losses, and that
the pool will continue to have a slow repayment rate.
The current credit enhancements are commensurate with the current
ratings on the notes; however, the notes remain vulnerable to
adverse business, financial or economic conditions, and are
increasingly exposed to tail-end risks as borrower concentration
increases.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
REGULATORY DISCLOSURES
Please refer to the initial rating report for any additional
regulatory disclosures that may apply to a transaction.
RATINGS AFFIRMED
Class Rating
D B- (sf)
E CCC- (sf)
The class F note is in default and rated 'D'.
WOODHEAD PTY: In Liquidation Following Acquisition by GHD
---------------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that Woodhead Pty Ltd,
currently ACN 007 747 748 Pty Ltd, has entered liquidation a day
after engineering consultancy GHD took control of the architecture
firm.
Barry Anthony Taylor -- btaylor@hlbnsw.com.au -- and Todd Andrew
Gammel -- tgammel@hlbnsw.com.au -- of HLB Mann Judd were appointed
as administrators of Woodhead on April 2, 2014. A meeting with
creditors is scheduled today, April 14.
dissolve.com.au notes that a GHD press release commented only on
the acquisition of the firm. It emphasized the consolidation's
benefits in the market today as a natural extension of a
collaboration history. Woodhead managing director Angelo Di Marco
was optimistic about the acquisition, the report adds.
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C H I N A
=========
SUNTECH POWER: Has Cooperation Agreement With Wuxi Suntech
----------------------------------------------------------
Suntech Power Holdings Co., Ltd. on April 10 said it is aware of
the Hong Kong Stock Exchange announcement made by Shunfeng
Photovoltaic International Ltd. that the conditions precedent to
the purported acquisition of 100% of the equity interests of Wuxi
Suntech pursuant to the terms and conditions under the
restructuring plan of Wuxi Suntech as approved by the Wuxi
Intermediate People's Court have been fulfilled, and as a result
all of the equity interests of Wuxi Suntech will be transferred to
an affiliate of Shunfeng.
Suntech said none of the directors of Power Solar System Co.,
Ltd., the joint provisional liquidators of Suntech Power appointed
following Suntech Power's application for a provisional
liquidation in the Cayman Islands, its jurisdiction of
incorporation, or the liquidator of PSS, have given their approval
to any transfer or disposal of the shares of Wuxi Suntech. On
February 10, 2014, the liquidator of PSS and the JPLs of Suntech
Power will continue to focus on an investigation of, among other
things, the purchase of PSS's equity interest in Wuxi Suntech by
Shunfeng and to take all steps as necessary to remedy improper
actions which have caused loss to Suntech Power, PSS, and their
creditors. No assurances can be given, however, that Suntech
Power retains equity interest in Wuxi Suntech, or the benefits
having an equity interest entail. Neither Suntech Power nor the
JPLs are currently able to exert management control or authority
over Wuxi Suntech.
Notwithstanding, following negotiations by the JPLs with the
current management at Wuxi Suntech, Suntech Power has entered into
a Cooperation Agreement with Wuxi Suntech which provides a
framework for the following (among other things):
* Suntech Power licenses to Wuxi Suntech certain product
certificates held by Suntech Power. It is expected, however, that
Wuxi Suntech will obtain its own product certificates later in
2014 in due course;
* Suntech Power, including its distribution subsidiaries in
the United States and Europe, will act as intermediaries for the
sale of products manufactured by Wuxi Suntech, facilitating Wuxi
Suntech entering into sales contracts with such customers. For a
period of one year, Suntech Power would earn a commission from
Wuxi Suntech in connection with any such sale;
* For a period of one year, Suntech Power, including its
customer support representatives at its subsidiaries in the United
States and Europe, would provide after-sales service for Wuxi
Suntech manufactured products which have been sold; and
* Wuxi Suntech would support the restructuring of Suntech
Power International, Ltd., the principal operating subsidiary of
Suntech Power in Europe which is currently engaged in a
restructuring proceeding under Swiss law.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented
by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
In February 2014, Suntech Power disclosed that the joint
provisional liquidators of the Company appointed by the Grand
Court of the Cayman Islands to oversee the restructuring of the
Company have commenced a Chapter 15 proceeding under the U.S.
Bankruptcy Code in a federal court in the Southern District of New
York. Under such a proceeding, the Company is seeking to have
recognized in the United States the Company's overseas provisional
liquidation which has previously been granted in the Cayman
Islands.
* CHINA: Importers Default on Soy Cargoes Amid Losses
-----------------------------------------------------
Reuters reports that Chinese importers have defaulted on at least
500,000 tonnes of U.S. and Brazilian soybean cargoes worth around
$300 million, the biggest in a decade, as buyers struggle to get
credit amid losses in processing beans.
According to Reuters, trade sources said three companies in the
eastern province of Shandong had defaulted on payments for
shipments as they were unable to open letters of credit with
banks.
A string of defaults on loans, bonds and shadow banking products
in recent weeks has highlighted rising credit risks in China,
partly fuelled by signs the economy is slowing, the news agency
notes.
Commodity firms, along with semiconductor and software companies,
are among the most at risk of credit defaults, a Reuters analysis
of more than 2,600 Chinese companies showed.
Up against the cooling economy and signs that authorities will not
step in every time a loan goes bad, Chinese banks are becoming
more hard-nosed and selective about whom they lend to, according
to Reuters.
"There are five to six (panamax) cargoes which are unable to be
unloaded at ports because buyers cannot open LCs (letters of
credit) and there are no LCs for an additional 5-6 cargoes
floating on the sea," Reuters quotes one Beijing-based source as
saying. Each panamax cargo is for 50,000 to 60,000 tonnes.
Reuters says defaults by buyers in China, which imports 60 percent
of the soybeans traded in the world, would likely cap a rally in
global prices as they coincide with bumper supplies from Brazil
and Argentina hitting the market.
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I N D I A
=========
A.B RICE: ICRA Reaffirms 'B' Rating on INR6cr Cash Credit
---------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B for INR6.0
crore fund based facilities of A.B Rice Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.00 [ICRA]B reaffirmed
The rating reaffirmation factors in small scale of operations of
the firm which coupled with low value added nature of the business
and high competition in the industry has led to modest
profitability and debt coverage indicators. The rating also
factors in relatively high gearing of the firm on account of high
working capital borrowings owing to working capital intensive
nature of business. The rating also takes into account high
intensity of competition in the industry and agro climatic risks,
which can affect the availability of paddy in adverse conditions.
ICRA however draws comfort from long experience of promoters in
rice industry, proximity of the mill to major rice growing area
which results in easy availability of paddy and stable demand
outlook with rice being an important part of the staple Indian
diet.
Incorporated in the year 1998, A.B Rice Mills is a partnership
firm engaged milling and processing of basmati and non basmati
rice. The firm has its plant located in Kurukshetra, Haryana with
milling capacity of 8 tons/hour and sorting capacity of 6
tons/hour.
Recent Results
The firm reported a net profit after tax of INR0.05 crore on an
operating income of INR25.17 crore in FY2013 as against net profit
of INR0.04 crore on an operating income of INR27.93 crore in
FY2012.
AARTI CONSTRUCTION: ICRA Assigns 'B+' Rating to INR3cr Loans
------------------------------------------------------------
The rating of [ICRA]B+ has been assigned to the INR3.00 crore long
term fund based facilities of Aarti Construction Company. The
rating of [ICRA]A4 has also been assigned to the INR6.00 crore
short-term non-fund based facilities of ACOCO.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Overdraft facility-Existing 1.50 [ICRA]B+ assigned
Overdraft facility-Proposed 1.50 [ICRA]B+ assigned
Bank Guarantee-Existing 4.00 [ICRA]A4 assigned
Bank Guarantee-Proposed 2.00 [ICRA]A4 assigned
The ratings are constrained by the firm's small scale of
operations, sector and geographical concentration risk arising
from focus on water supply scheme projects based in Gujarat and
the high competitive intensity in the region. The ratings are
further constrained by the vulnerability of profitability to
fluctuation in cement and steel prices in case actual usage of
materials exceeds the contracted quantities. ICRA also notes that
ACOCO is a partnership firm and any significant withdrawals from
the capital account would affect its net worth and thereby have an
adverse impact on the capital structure.
The ratings favorably factor in the experience of the firm in the
construction industry, its healthy order book position, and the
favorable demand outlook for the construction sector given the
government's focus on infrastructure development.
Aarti Construction Company was established in 1986 by Mr.
Jayantibhai M. Sorathia and other Sorathia family members and is
engaged in civil construction business. ACOCO is registered as
approved contractor in "AA" class with Roads & Buildings
Department, Government of Gujarat and is mainly engaged in
execution of water canal projects. The firm is based out of
Baroda, Gujarat and has, since inception, executed projects
involving construction in water supply segment and related civil
work for semi-government agencies/local authorities in Gujarat.
Recent Results
In FY 2013, ACOCO reported an operating income of INR7.26 crore
and profit after tax of INR0.53 crore as against operating income
of INR12.05 crore and profit after tax of INR0.45 crore for the
year ended 31st March 2012. Further during first 9 months of FY
2014, the firm has reported operating income of INR3.46 crore and
profit after tax of INR0.22 crore.
ALANKAR ALLOYS: CRISIL Cuts Rating on INR420MM Loans to 'B+'
-----------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Alankar
Alloys Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 130 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Cash 100 CRISIL B+/Stable (Downgraded
Credit Limit from 'CRISIL BB-/Stable')
Term Loan 190 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects the pressure on AAPL's liquidity
from the company's large annual debt repayments, tightly matched
cash accruals and the absence of any cushion in working capital
bank lines amid working-capital-intensive operations. The
company's ability to reduce its working capital cycle and the
promoters' timely funding support will remain key rating
sensitivity factors over the medium term.
The ratings continue to reflect AAPL's below-average financial
risk profile, marked by a weak capital structure amid sizeable
debt-funded capital expenditure (capex) and large working capital
requirements, and susceptibility to volatility in raw material
prices. These rating weaknesses are partially offset by the
promoters' extensive experience in the iron and steel industry.
Outlook: Stable
CRISIL believes that AAPL's overall financial risk profile will
remain constrained by large capex and sizeable debt obligations.
The outlook may be revised to 'Positive' if AAPL's liquidity
improves, with an improved working capital cycle or sizeable
equity infusion. Conversely, the outlook may be revised to
'Negative' if the company's liquidity weakens due to project cost
or time overruns, or absence of timely fund support from
promoters.
AAPL, based in Raipur (Chhattisgarh), was acquired by Mr. Lalit
Kumar Agrawal in June 2011. The company manufactures thermo-
mechanically treated (TMT) steel bars.
AAPL reported a profit after tax (PAT) of INR8.6 million on net
sales of INR1343 million for 2012-13 (refers to financial year,
April 1 to March 31), vis-a-vis a PAT of INR8.0 million on net
sales of INR873.4 million for 2011-12.
AMBUJA PIPES: ICRA Assigns 'B' Rating to INR2.36cr Term Loans
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to INR12.00
crore (reduced from INR15.00 crore) fund based limits of Ambuja
Pipes Private Limited at [ICRA]B and has reaffirmed the short term
rating assigned to INR9.25 crore non-fund based limits of APPL at
[ICRA]A4 . ICRA has also assigned rating of [ICRA]B to INR2.36
crore term loans and ratings of [ICRA]B/[ICRA]A4 to INR0.39 crore
unallocated limited of APPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based Limits- 12.00 [ICRA]B reaffirmed
Cash Credit
Fund based Limits-
Term Loans 2.36 [ICRA]B assigned
Non-fund based 9.25 [ICRA]A4 reaffirmed
Limits-Letter of
Credit
Unallocated Limits 0.39 [ICRA]B/[ICRA]A4 assigned
The ratings continue to be constrained by highly competitive
nature of the steel tubes/pipes industry; APPL's limited product
portfolio and its reduced scale of operations in FY2013 which
coupled with low profitability have resulted in modest cash
accruals. ICRA also factors in high debt levels of the company to
fund the working capital intensive nature of the business which
has resulted in modest debt protection metrics for the company.
ICRA nevertheless takes comfort from the APPL's experienced
management and positive demand outlook for steel pipes in India.
APPL was incorporated in 1999 and has been involved in producing
G.I/Steel tubes since inception. The main products of the company
include ERW (Electric Resistance Welded) tubes and G.I (Galvanized
Iron) tubes ranging 15 mm to 30 mm. The company has an annual
capacity of 21,000 MTPA and caters to various government agencies
mainly GSB (Gujarat Sewage Board), PHD (Public Health Department)
of Rajasthan and also to various private players.
Recent Results
As per the audited results, APPL reported a net profit of INR0.03
crore on an operating income of INR61.64 crore for the year ended
March 31, 2013 and a net profit of INR0.01 crore on an operating
income of INR97.77 crore for the year ended March 31, 2012.
CENTURION LABORATORIES: ICRA Puts 'B' Rating on INR13.25cr Loan
---------------------------------------------------------------
The long-term rating of [ICRA]B has been assigned to the INR13.25
crore long-term fund based facility of Centurion Laboratories
Private Limited. The rating of [ICRA]A4 has also been assigned to
the INR0.27 crore short-term non-fund based facility of CLPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 13.25 [ICRA]B assigned
Credit Exposure Limit 0.27 [ICRA]A4 assigned
The assigned ratings are constrained by the implementation and
market risks associated with the greenfield venture of the company
The ratings are further constrained by the highly leveraged
capital structure and possible stress on debt servicing ability in
case of slower than anticipated ramp up of operations and cash
flows. The ratings further take into consideration the highly
competitive generic formulation manufacturing industry with
presence of large established organized manufacturers as well as
unorganized players that export generic formulation drugs to semi-
regulated markets thereby limiting pricing flexibility.
The ratings, however, favourably take into account the experience
of the promoters in the pharmaceutical industry and technical
competence to conceptualize new formulations resulting in approved
status for several formulations in several countries.
Incorporated in December 2006, Centurion Laboratories Private
Limited is setting up a formulation drug manufacturing plant in
Savli, Vadodara, Gujarat with a production capacity of 840 crore
tablets and 270 crore capsules per annum. The proposed plant would
be able to manufacture tablets between 10 and 100 mg. The company
is promoted by Mr. Dhruval Patel and Mr. Ambalal Patel who have
more than 20 years experience in the pharmaceutical industry
through related concern- Centurion Remedies Private Limited.
D.S. TEXTILES: ICRA Downgrades Rating on INR10cr Loans to 'D'
-------------------------------------------------------------
ICRA has revised the rating assigned to the INR3.73 crore (reduced
from INR4.30 crore) term debt facilities and INR4.50 crore
(enhanced from INR3.50 crore) long-term fund based bank facilities
of D. S. Textiles to [ICRA]D from [ICRA]B+. ICRA has also revised
the rating assigned to the INR0.04 crore short-term non fund based
bank facility of the firm to [ICRA]D from [ICRA]A4 . The ratings
for the unallocated bank facilities of DST have been revised to
[ICRA]D from [ICRA]B+ and/or [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 3.73 [ICRA]D Revised from
[ICRA]B+
Long-term fund 4.50 [ICRA]D Revised from
based facility [ICRA]B+
Short-term non 0.04 [ICRA]D Revised from
fund based facility [ICRA]A4
Unallocated 1.73 [ICRA]D Revised from
facilities [ICRA]B+ and/or [ICRA]A4
The rating revision takes into account the current delays in
servicing of term debt by D. S. Textiles (DST) given the largely
debt funded capital expenditure incurred in FY10 and FY11, which
has also resulted in subdued net profitability and high gearing
profile of 4.20 times as on 31st March 2013. The working capital
position of DST is stretched following delayed payments from
customers and high inventory which has also led to high bank limit
utilization pattern. The scale of operations of DST is small, at
present, restricting scale economies. ICRA notes that firm's
revenues are vulnerable to fluctuations in yarn prices, although
order backed purchases limit the risk to an extent. Also the firm
is susceptible to the risks associated with the entity's status as
a proprietorship firm including the risk of capital withdrawal.
The ratings, however, favourably factor in the proprietor's
experience in the manufacture of jacquard fabric and the firm's
healthy operating margins and stable demand from the end-user
industries which is likely to boost revenues going forward.
Established as a proprietorship firm by Mr. Rakesh Dharamdas
Talreja in 2009, D. S. Textiles (DST) is engaged in the
manufacture of grey fabrics for suitings & shirtings and jacquard
fabrics for home d‚cor purposes. DST commenced its commercial
operations in October 2009 and has ever since been adding to its
capacity. Currently the firm has 32 looms of which 24 looms are
jacquard-fitted, 1 rapier loom and 7 plain looms. The purchase of
looms has largely been funded by term loan from bank and interest
bearing unsecured loans (ROI 12%).
DST has its registered office in Kalbadevi and manufacturing
facility at Bhivandi.
Recent Results
As per its audited financials for FY13, DST recorded a net profit
of INR0.18 crore on an operating income of INR19.26 crore.
DASHMESH AGRO: ICRA Reaffirms 'B' Rating on INR17.85cr Loan
-----------------------------------------------------------
ICRA has re-affirmed the [ICRA]B rating for INR17.85 crore fund
based bank facilities of Dashmesh Agro Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 17.85 [ICRA]B (re-affirmed)
The rating continues to be constrained by DAI's presence in a
highly competitive nature of the industry, its moderate scale of
operations, weak profitability metrics, high gearing level and
consequently weak debt protection indicators. The rating is also
constrained by its stretched liquidity position as reflected by
consistently high working capital limits utilization arising out
of high inventory holding period and risks inherent in a
partnership firm like limited ability to raise equity capital,
risk of dissolution due to death/retirement/insolvency of partners
etc. However, the ratings favorably factor in DAI's experienced
promoters with long track record in rice milling industry.
Dashmesh Agro Industries is a partnership firm promoted by Mr.
Ashwani Sidana and his family members. The firm is primarily
engaged in milling of basmati rice. The firm is also engaged in
converting semi processed rice into parboiled Basmati rice. DAI's
milling unit is based out of Jalalabad, Distt. Ferozpur, Punjab
which is in close proximity to the local grain market.
Recent Results
During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR0.36 crore on an operating income of
INR45.85 crore as against PAT of INR0.28 crore on an operating
income of INR40.58 crore in 2011-12. As per the provisional
figures, the firm reported sales of INR61 crore (ytd).
DIVYALAKSHMI TEXTILES: ICRA Keeps B- Rating on INR45.9cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B- outstanding
on the INR23.00 crore term loan facilities, INR9.50 crore fund
based facilities and INR13.40 crore proposed facilities of
Divyalakshmi Textiles Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 23.00 [ICRA]B-/reaffirmed
Long-term-Fund based
facilities 9.50 [ICRA]B-/reaffirmed
Long-term-Proposed
facilities 13.40 [ICRA]B-/reaffirmed
The rating reaffirmation factors in moderate growth in revenues in
2012-13 and current fiscal driven by revival in yarn demand
alongside improvement in realizations. The rating also considers
the experience of promoters in the spinning industry and DTPL's
major concentration in the medium and finer counts enabling better
realizations. The rating is, however, constrained by the Company's
stretched financial profile characterized by weak capitalization /
coverage indicators and the exposure of Company's earnings to
fluctuations in cotton prices which would have an adverse impact
on the margins in the event of downturn in yarn demand as
witnessed during 2011-12. DTPL operates in the highly fragmented
spinning industry where high competition coupled with low product
differentiation limits pricing flexibility and its small scale of
operations restrict scale economies and financial flexibility.
Going forward, the ability of the Company to increase its scale,
enhance profitability and improve its capital structure would
remain the key rating sensitivities.
Incorporated in 2005, Divyalakshmi Textiles Private Limited has
been engaged in the business of spinning 100% cotton in the range
of 31s to 120s. The Company has capacity to produce single,
doubled and cabled yarns. The spinning plant for the Company is
located at Arupukottai (Tamil Nadu) with total installed capacity
of 27,200 spindles.
Recent Results
The Company reported net profit of INR1.4 crore on an operating
income of INR46.7 crore during 2012-13 as against net profit of
INR0.2 crore on an operating income of INR39.1 crore during 2011-
12.
EXOTICA CERAMIC: ICRA Reaffirms 'B+' Rating on IRN8.09cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR3.09 crore (reduced from INR5.03 crore) term loans, the INR5.00
crore (enhanced from INR3.50 crore) cash credit facility of
Exotica Ceramic Private Limited. ICRA has also reaffirmed the
short term rating [ICRA]A4 to the INR2.25 crore (enhanced from
INR0.87 crore) non fund based bank guarantee facility of ECPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term Loans 3.09 [ICRA]B+ reaffirmed
Fund Based-Cash Credit 5.00 [ICRA]B+ reaffirmed
Non Fund Based-Bank
Guarantee 2.25 [ICRA]A4 reaffirmed
The ratings remain constrained by Exotica Ceramic Private
Limited's modest scale of operations with a single product
portfolio and weak financial profile as reflected in thin
profitability and modest debt protection indicators. The ratings
are also constrained by the stretched liquidity on account of
increased inventory level. The ratings also take into
consideration, the susceptibility of operations to the intense
competition with the presence of established organized tile
manufacturers and unorganized players given the limited track
record of the company. While assigning ratings, ICRA also takes
note of the dependence of operations and cash flows on the
performance of the real estate industry, which is the main
consuming sector for the company's products and the vulnerability
to increasing prices of gas and power.
The ratings, however, favorably take note of the experience of the
key promoters in the ceramic industry and the location advantage
enjoyed by ECPL, giving it easy access to raw material. The
ratings also consider the company's recent entry into the digital
printing segment, which is expected to fetch better realizations.
Exotica Ceramic Private Limited is a digitally printed ceramic
wall tiles manufacturer with its plant situated at Morbi, Gujarat.
The company was incorporated in 2011 with commencement of
commercial operation in July 2011. The management of ECPL is
handled by three directors namely Mr. Jigneshbhai Rupala, Mr.
Bharatbhai Rupala and Mr. Jigneshbhai Kadivar. In FY13, the
company has installed a digital printing machine and at present
the total installed capacity to produce well tiles stands at 31938
metric tone per annum (MTPA).
Recent Results
During FY13, ECPL reported an operating income of INR20.35 crore
and PAT of INR0.06 crore. Further, during the first 9 months of
FY14 (unaudited provisional financials), the company reported an
operating income of INR17.35 crore with profit before depreciation
and tax of INR3.46 crore.
FABULLA CERAMICS: ICRA Cuts Rating on INR5.80cr Loans to 'D'
------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR3.00
crore cash credit limits and INR2.40 crore term loans of Fabulla
Ceramics Private Limited to [ICRA]D from [ICRA]B-. ICRA has also
revised the short term rating assigned to the INR0.40 crore non-
fund based facilities of FCPL to [ICRA]D from [ICRA]A4 .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 3.00 Revised to [ICRA]D
from [ICRA]B
Term Loans 2.40 Revised to [ICRA]D
from [ICRA]B
Bank Guarantee 0.40 Revised to [ICRA]D
from [ICRA]A4
The rating revision reflects the stretched liquidity position of
the company as reflected by the recent delays in debt servicing
primarily on account of lower than anticipated revenues stemming
from suboptimal capacity utilization levels given the ongoing
weakness in the real estate industry which coupled with high
working capital intensity of operations and high repayment
obligations towards the debt funded capital expenditure have
resulted in a stress on the company's cash flows. Further the
ratings are constrained by FCPL's weak financial profile
characterized by high gearing levels and poor coverage indicators,
small size of current operations and the highly competitive nature
of the ceramic tile industry. The ratings also takes into account
the vulnerability of FCPL's profitability to the cyclicality
associated with the real estate industry and to the increasing
prices of gas, as gas is the major source of fuel.
ICRA takes note of the experience of promoters in the ceramic
industry and locational advantage due to presence of the company's
plant in Morbi (Gujarat), India's ceramic hub giving it easy
access to raw material.
Incorporated in June 2007, Fabulla Ceramics Private Limited (FCPL)
commenced commercial production of ceramic wall tiles in 2009 with
its plant being located at Morbi in Rajkot district of Gujarat.
FCPL has been promoted by Mr. Vasant Bhila who has been associated
with ceramic tile industry for more than two decades. The company
currently manufactures ceramic wall tiles of sizes 12"x15" and
12"x18" having installed capacity of ~15000 metric tonne per annum
(MTPA). The company sells the products under its brand name
"Colorado".
In FY 13, FCPL reported an operating income of INR5.82 crore and
net loss of INR0.77 crore as against an operating income of
INR10.66 crore and profit after tax of INR0.15 crore during FY 12.
During 9M FY14 (provisional financials), FCPL reported an
operating income of INR5.04 crore.
GHODAWAT ENTERPRISES: ICRA Assigns 'B+' Rating to INR36.7cr Loan
----------------------------------------------------------------
ICRA has assigned the [ICRA]B+ rating to the INR36.7 crore term
loan facilities of Ghodawat Enterprises Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund based 36.7 [ICRA]B+ Assigned
Limits-Term Loan
The rating favourably factors in the firm leasing agreement in
place for the property owned in Bangalore generating stable cash
flows for the company and the group's business profile with a
healthy net worth position of the promoters. The reimbursement
loan being sought for the windmill capex already completed by the
company is likely to lend support to the cash position in addition
to the stable cash flows from power generation.
The rating is constrained by the sizeable debt funded capex
incurred for the unrelated diversification into helicopter
chartered leasing business. The group has limited experience of
the proposed operations resulting in high degree of dependence on
interest on advances lent to meet the sizeable debt repayment
obligations. The extent of support lent in the form of advances to
the group remains critical from the credit perspective going
forward.
Ghodawat Enterprises Pvt. Ltd., formerly known as M D Properties
Pvt. Ltd. was formed on 26.05.1995 by Embassy Group of Bangalore.
The company was taken over by Sanjay Ghodawat Group in the year
2007. Present directors of the Company are Mr. Sanjay D. Ghodawat
and Mrs. Neeta Sanjay Ghodawat. The Company owns a 250,000 sq.ft.
property in Embassy Golf Links Business Park Bangalore. Presently,
the building has been leased out to Fidelity Business Services
India Pvt. Ltd. The company also owns two windmills in Satara of
1.7MW and has bought a six seat twin engine helicopter in Aug,
2013 which it plans to operate on a non-scheduled charter basis.
GEPL is likely to obtain the requisite clearances from DGCA by
February, 2014 and the commercial operations would commence
thereafter.
GOPINATH ENTERPRISE: ICRA Cuts Rating on INR4.76cr Loans to 'B+'
----------------------------------------------------------------
ICRA has revised the rating assigned to the INR4.76 crore
(enhanced from INR4.16 crore) long term fund based facilities of
Gopinath Enterprise Private Limited to [ICRA]B+ from [ICRA]BB-
(Stable) . ICRA has reaffirmed the short term rating assigned to
the INR4.25 crore (enhanced from INR1.00 crore) short-term non-
fund based facilities of GEPL at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 Revised to [ICRA]B+ from
[ICRA]BB-
Term Loan 0.76 Revised to [ICRA]B+ from
[ICRA]BB-
Letter of Credit 4.00 Reaffirmed at [ICRA]A4
LER Limits 0.25 Assigned [ICRA]A4
The revision in rating takes into account the deterioration in the
company's financial performance as reflected by operating losses
in the first nine month period of FY2014 as a result of inability
to pass on the input price increases to the customers. The ratings
are further constrained by the company's small scale of operations
highly competitive business environment on account of the
fragmented industry structure, with limited entry barriers as well
as high working capital intensity in the company's operations.
The ratings, however, favorably consider the long track record of
the promoter in the tarpaulin segment, diversified customer
profile and company's established supply relationships with its
customer base in domestic market.
Gopinath Enterprise Private Limited is engaged in the business of
manufacturing HDPE based tarpaulin, fabric and woven sacks under
its own brand name as well as contract manufacturing for other
entities. GEPL is promoted by Mr Bharat and Mr Manish Agrawal who
set up the entity in 2008. GEPL operates from its plant located
near Santej, Gandhinagar with a total installed capacity 3600 MT
per annum. GEPL manufactures tarpaulin sheets ranging between 110
GSM to 230 GSM; which it markets under its "Sparrow Tarpaulin"
brand name.
Recent Results
In FY 2013, GEPL reported an operating income of INR26.08 crore
(as against INR25.63 crore in FY 2012) and profit after tax of
INR0.58 crore (as against INR0.47 crore in FY 2012). For 9MFY2014
(provisional un-audited), GEPL reported an operating income of
INR25.73 crore and an operating loss of INR0.89 crore.
HOTEL RANG-INN: CRISIL Downgrades Rating on INR140MM Loans to 'D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Hotel Rang-Inn Pvt Ltd to 'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Proposed Term Loan .4 CRISIL D (Downgraded from
'CRISIL B/Stable')
Term Loan 139.6 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by HRIPL in
servicing the interest on term debt; the delays have been caused
by the company's small scale of operations in a weak demand
scenario.
HRIPL also has exposure to implementation risks related to its
ongoing hotel project, and has a small scale of operations in the
highly competitive hospitality industry. The company, however,
benefits from the favourable location of its upcoming hotel and
the established image of its brand, Shree Rang, in Bharuch
(Gujarat) region.
Incorporated in 2007, HRIPL is promoted by the Bharuch-based
Hariyani brothers, promoters of the Shree Rang group. The group is
engaged in real estate business, with presence in and around
Bharuch. HRIPL runs a budget-hotel in Bharuch and is setting up a
three-star hotel in the premises adjoining its existing hotel.
For 2012-13 (refers to financial year, April 1 to March 31), HRIPL
reported a net profit of INR1.98 million on net sales of INR26.9
million, against a net profit of INR2.37 million on net sales of
INR27.6 million in 2011-12.
ICFAI UNIVERSITY: ICRA Assigns 'B+' Rating to INR11cr Loan
----------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to INR11.00 crore
fund based facilities of ICFAI University Sikkim.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based facilities 11.00 [ICRA]B+ Assigned
The assigned rating is constrained by declining enrolments for the
various on campus programs. IUS witnessed significant decline in
fresh enrolments for the various on campus programs over the last
two years. The rating is also constrained by the weak financial
profile characterized by low profitability, high gearing and
stretched coverage indicators. ICRA notes that replacing the
interest free advances from the sponsor with a term loan would
have an adverse impact on coverage metrics as a result of
increased interest burden. Attracting students and retention of
faculty remains a key challenge for IUS given the increasing
competition in higher education.
The rating however draws comfort from the operational and
financial support from sponsor ICFAI (rated [ICRA]BBB) with ten
operational private state universities, one deemed university and
six ICFAI business schools with more than 20000 students enrolled
for various on and off campus programs. Flexible learning program
(FLP) is expected to drive revenue growth in the medium term.
However, high dependence on FLP could expose IUS to volatility in
revenues as demand for FLP depends on discretionary spending
(unlike regular on campus programs) of the participants.
Going forward, the ability of the University to improve enrolments
for the FLP program and improve its profitability will be the key
rating sensitivities.
University Profile
The ICFAI University, Sikkim has been established under Section 4
(2) of the Institute of Chartered Financial Analysts of India
University, Sikkim Act 2004 (Act 9 of 2004) passed by Legislative
Assembly of Sikkim. The university currently offers BBA, MBA and
BHTM (Bachelor of Hospitality and Tourism Management) under
Faculty of Management; BCA under Faculty of Science and Technology
and 5 year integrated law program under Faculty of Law from its
own premises at Sichey, Sikkim. IUS attained the requisite
approvals from DEC after which FLP programs were offered from FY
11 onwards.
ICON CABLES: ICRA Reaffirms 'B+' Rating on INR4.80cr Loan
---------------------------------------------------------
ICRA has reaffirmed the long term rating at [ICRA]B+ for the
INR4.80 crore fund based facilities. ICRA has also re-affirmed
[ICRA]A4 rating for INR1.70 crore non-fund based facilities of
ICON Cables Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based limits 4.80 [ICRA]B+ reaffirmed
Non-fund based limits 1.70 [ICRA]A4 reaffirmed
The rating reaffirmation takes into account the long track record
of promoters with over 4 decades of experience in cable industry
and reputed client base which reduces counter party risk to a
large extent. The scale of operations of the company however
continues to remain small on account of muted growth in revenues
in the last few years; this has constrained the rating of the
company. The order intake has remained low (current outstanding
order book of 0.4 times the FY13 revenues) on account of intensely
competitive and fragmented nature of the cable industry with low
entry barriers. Further the rating continues to be constrained by
ICL's exposure to raw material price fluctuation risk. Although
the company benefits from low debt repayments, and moderate
gearing (helped by equity infusion by promoters in FY13), however,
the debt coverage indicators continue to remain stressed. In
addition, the liquidity position of the company too is stretched
resulting in limited cushion for its operations.
Going forward, the ability of the company to improve upon its
scale of operations, profitability and timely execution of the
pending order book will remain key rating drivers for the company.
ICON Cables Limited was incorporated in the year 1999 with the
head office in Delhi and manufacturing facility at Neemrana,
Rajasthan. The company is primarily engaged into manufacturing of
different kinds control and instrumentation cables. The company
products cater to Indian markets as well as International markets.
The products manufactured are used in industries like Telecom,
Power Plants, Cement, Steel, Paper, Polyester and Petroleum etc.
The Company is professionally managed by Mr. N.K Rathi who has
over 4 decades of experience in cable industry.
The company has successfully set up the new facility at Neemrana
at a project cost of INR4.2 crore, the commercial production
started in April 2012. The existing unit was situated at Chopanki,
Bhiwadi, Rajasthan.
Recent Results
During the financial year 2012-13, the company reported a profit
after tax (PAT) of INR0.39 crore on an operating income of
INR21.73 crore as against PAT of INR0.24 crore on an operating
income of INR19.64 crore in 2011-12. For the current financial
year, the company has already achieved turnover of INR19 crore mid
March 2014.
KISH EXPORTS: ICRA Reaffirms 'B' Rating on INR10cr Loan
-------------------------------------------------------
ICRA has reaffirmed [ICRA]B rating for INR10.0 crores fund based
limits of Kish Exports Limited. ICRA has also reaffirmed [ICRA]A4
rating for INR1.0 Crore non-fund based limits of KEL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 10.00 [ICRA]B reaffirmed
Non-Fund Based Limits 1.00 [ICRA]A4 reaffirmed
The rating action takes into account decline in operating
profitability of the company in FY2013 and high working capital
intensity of operations due to high advances to group companies
and for properties. The ratings also factors in highly competitive
nature of the garment exporting industry which exerts pressures on
the margins of the company. Further the profitability of the
company remain exposed to any adverse movements in raw material
prices and the exchange rate fluctuations since KEL doesn't hedge
its foreign currency denominated receivables. While assigning the
rating, ICRA has also factored in the weak debt protection metrics
(NCA/TD of 10% and interest coverage ratio of 1.57 times for
FY2013) and poor return indicators of the company (ROCE of 3.9%
for FY2013). Nevertheless, the ratings derive some comfort from
KEL's experienced management with long track record in the exports
business.
Kish Exports Limited was incorporated in 1993 and is engaged in
manufacturing and export of garments. The company is promoted by
Mr. M.K. Lakhwani and Ms. Sanjana Samtani. The company is
primarily an exporter and derives roughly 95% of its income from
exports and the remaining 5% from domestic sales. The company
specializes in silk garments with embroidery and beads with
approximately 50% of the company's business in silk and silk
products. Besides silk, the company is also engaged in fabrics
like Mosscrepe, Georgette, Y/D plaids procured from South India,
rayon cotton blends and Amritsar woolen fabric etc. The designing
of garments is done in-house based on the instructions/designs
approved by the customers. Majority of the garment manufacturing
for Kish Exports Limited is done by Ishvar International, which is
a group company (proprietorship firm with Mrs. Lakhwani as
proprietor). The company majorly exports to USA, UK and South
Africa.
In FY 2013, KEL reported net profit of INR1.28 crores on an
operating income of INR25.91 crores as compared to net profit of
INR0.25 crores on operating income of INR23.99 crores in FY2012.
M L RICE: ICRA Reaffirms 'B+' Rating on INR20cr Loan
----------------------------------------------------
ICRA has re-affirmed the [ICRA]B+ rating for INR20 crore (enhanced
from INR13.00 crore) fund based bank facilities of M L Rice Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- ------
Fund Based Limits 20.00 [ICRA]B+ (re-affirmed)
The rating continues to be constrained by MRM's presence in a
highly competitive nature of the industry, its moderate scale of
operations, weak profitability metrics, high gearing level and
consequently weak debt protection indicators. The rating is also
constrained by its stretched liquidity position as reflected by
consistently high working capital limits utilization arising out
of high inventory holding period and risks inherent in a
partnership firm like limited ability to raise equity capital,
risk of dissolution due to death/retirement/insolvency of partners
etc. However, the ratings favorably factor in MRM's experienced
promoters with long track record in rice milling industry.
M L Rice Mill is a partnership firm established in 1983 promoted
by Mr. Janak Raj and his family members. The firm is primarily
engaged in milling of basmati rice. The firm is also engaged in
converting semi processed rice into parboiled Basmati rice. MRM's
milling unit is based out of Jalalabad, Distt. Ferozpur, Punjab
which is in close proximity to the local grain market.
Recent Results
During the financial year 2012-13, the company reported a profit
after tax (PAT) of INR0.20 crore on an operating income of
INR35.80 crore as against PAT of INR0.10 crore on an operating
income of INR29.29 crore in 2011-12. As per the provisional
figures, the firm reported sales of INR50 crore (ytd).
P&R ENGINEERING: ICRA Revises Rating on INR26.77cr Loan to 'D'
--------------------------------------------------------------
ICRA has revised the long term rating from [ICRA]B- to assigned to
the INR26.77 crore Term Loans of P&R Engineering Services Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 26.77 [ICRA]D revised from [ICRA]B-
The revision in rating takes into account the mismatch in cash
flows which has resulted in delays in debt servicing. This is
despite a substantially improved generation, higher tariff and
higher REC sales during FY 2013 over last year and also receipt of
the second half of the capital subsidy in December 2012, although
the profits remained muted in FY 2013 on account of significant
project maintenance expenses incurred by the company. Rating
concerns also emanate from the relatively high credit risk profile
of the company given the high gearing and inability to meet the
design energy parameters by the company's hydel project in
Brenwar, J&K. These factors have put pressure on the liquidity
position of the company in the past.
The rating also factors in hydrological risks as PRESPL is not
covered under deemed generation clause in case of factors like
shortage of water or loss of generation due to silting. Given that
the revenues of the company are linked to actual unit sales, this
exposes the company to risks of variable cash flows. Further,
given the seasonality of power production (and hence cash flow
generation), the cash flows of the company are likely to remain
volatile and this may result in liquidity mismatches.
The rating draw comfort from the limited demand risks due to
significant energy deficit in northern India, upside potential in
tariffs in the merchant route (tariff of INR4.17/ unit in FY 2013
and INR3.89 per unit in 9 months FY 2014). Further, the
counterparty credit risks are also significantly mitigated as the
company is selling power through PTC, a financially strong entity.
Despite the above strengths, the ratings of the company are
constrained by its inability to service its debt obligations
timely.
Going forward, the ability of the company to meet the designed
performance parameters, availability of adequate water in the
catchment area and regularizing of debt servicing will be the key
rating drivers.
P&R Engineering Services Pvt Ltd is promoted by the P&R Group to
develop, own and operate a 7.5 MW small hydro project in Jammu &
Kashmir, District Budgam. This is a run of the river type scheme
on Doodhganga, a tributary of Jhelum, which will utilize flows of
the river to harness approximately 204m of net head.
The company reported an operating income of INR11.8 crore in FY
2013 as against INR7.25 crore in FY 2012 driven largely by higher
Plant Load factor (37% in FY 2013 as against 25% in previous
year), higher average tariff (INR4.17 per unit in FY 2013 as
against INR3.54 in previous year) and also higher REC sales
(INR3.86 crore in FY 2013 as against INR2.31 crore in previous
year). The company reported profit after tax of INR0.9 crore in FY
2013 as against INR0.2 crore in FY 2012.
.
P&R GOGARIPUR: ICRA Reaffirms 'D' Rating on INR13.41cr Term Loan
-----------------------------------------------------------------
ICRA has reaffirmed long term rating of assigned to the INR13.41
crore Term Loans of P&R Gogaripur Hydro Power Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 13.41 [ICRA]D reaffirmed
ICRA's rating action factors in the relatively high credit risk
profile of the company given the relatively high project cost and
the high gearing of the company's hydel project in Gogaripur,
Haryana. With the company not able to achieve the design net head
(2.75m), the generation has been impacted in the last three years.
These factors have put pressure on the liquidity position of the
company and resulted in delays in debt servicing. The rating also
factors in hydrological risks as PRGHPPL is not covered under
deemed generation clause in case of factors like shortage of water
or loss of generation due to silting. Given that the revenues of
the company are linked to actual unit sales, this exposes the
company to risks of variable cash flows.
Further, given the seasonality of power production (and hence cash
flow generation), the cash flows of the company are likely to
remain volatile and this may result in continued liquidity
mismatches. On the positive side, presence of a long term PPA
(Power Purchase Agreement) contract, reasonable tariff levels
(recently revised by HERC, INR5.06 per unit for FY 2013 and
INR4.89 per unit for FY 2014), and low regulatory risk provide
support to the ratings. The rating also draws comfort from the
limited demand risks due to significant energy deficit in northern
India, likelihood of additional revenue stream from receipt of
capital subsidy from Ministry of New and Renewable Energy (MNRE).
Despite the above strengths, the ratings of the company are
constrained by its inability to service its debt obligations
timely.
Going forward, the ability of the company to meet the designed
performance parameters and regularizing of debt servicing will be
the key rating drivers.
P&R Gogaripur Hydro Power Pvt Ltd is promoted by the P&R Group to
develop, own and operate a 2 MW small hydro project in District
Karnal, Haryana. This is a canal based project on NBK Diversion
Channel of Western Jamuna canal (WJC) Main Branch, to harness
approximately 2.75m of net head.
The company reported an operating income of INR3.1 crore in FY
2013 as against INR2.26 crore in FY 2012, driven mainly by higher
tariff as well slightly higher generation (34% Plant Loaf Factor
in FY 2013 as against 29% in FY 2012). The company thus reported a
profit after tax of INR0.1 crore in FY 2013 as against a loss
after tax of INR0.3 crore in FY 2012.
PATNI PULSES: ICRA Assigns 'B' Rating to INR8.50cr Cash Credit
--------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR8.50
crore working capital facilities of Patni Pulses.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund based 8.50 [ICRA]B assigned
working capital limits
(Cash Credit)
The assigned rating favorably factors in the long experience of
the firm's promoters in the dal processing business; and its
strong distribution network for procurement and sales of
commodities. The rating is constrained, however, by the
vulnerability of agro commodities like pulses to agro climatic
conditions, and intense competition from unorganized players
resulting in margin pressure, modest profitability indicators and
weak coverage indicators. The rating is further constrained by the
firm's working capital intensive nature of operations and its
dependence on external borrowings for working capital
requirements, resulting in a highly leveraged capital structure.
Incorporated in 2007, Patni Pulses is engaged in the processing
(milling) of agro commodities, primarily pulses. Patni Pulses
generates most of its revenues from processing toor dal, chana dal
and moong dal. Dal is packed and marketed under the brand names,
"Double Gajraj", "Single Gajraj" and "Twenty Twenty".
Recent results
As per audited results for FY2013, Patni Pulses reported a profit
after tax (PAT) of INR0.00 crore over an operating income (OI) of
INR29.80 crore, as against a PAT of INR0.25 crore on an OI of
INR27.93 crore in FY2012.
PRASHANTI LAND: ICRA Suspends 'B-' Rating on INR17.75cr Term Loan
-----------------------------------------------------------------
ICRA has suspended [ICRA]B- rating, assigned to the INR17.75 crore
term loans of Prashanti Land Developers Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
PRIME COMFORT: ICRA Reaffirms 'B+' Rating on INR34.80cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating at '[ICRA]B+' to the
INR22.50 Crore fund based limits and INR12.30 crore term loans of
Prime Comfort Products Private Limited. ICRA has also reaffirmed
short term rating at [ICRA]A4 to the INR22.50 crore (sublimit of
fund based facilities) non fund based limits of Prime.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 22.50 [ICRA]B+ reaffirmed
Non Fund Based 22.50 [ICRA]B+/A4 reaffirmed
Term Loans 12.30 [ICRA]B+ reaffirmed
The ratings continue to be constrained by Prime's relatively
moderate scale of operations in comparison to established players
of the industry and its limited pricing flexibility owing to
intense competition which has resulted in moderate profitability
margins for the company. Further, the profitability margins remain
vulnerable to volatility in prices of raw materials as company
maintains sizeable inventory on account of the lead time involved
in the import of raw materials. This also exposes the company to
foreign exchange fluctuation risk on import payables, amplified by
lack of adoption of any firm hedging mechanism. The ratings are
further constrained by high working capital intensity of
operations which has resulted in higher working capital funding
requirements to meet the growth in scale of operations. This has
resulted in high gearing of 1.77x and moderate debt coverage
indicators with Total debt/ OPBDITA of 4.44x and NCA/Total debt of
8% for FY2013. The company faces sizeable debt repayment
commitments in the medium term.
Nevertheless, the ratings derive comfort from long and established
track record of promoters in the foam industry and favorable
demand outlook for foam products in India. Driving on this, the
company has been steadily increasing the sales of its branded/
retail product segment. This has resulted in the healthy growth in
turnover of the company in FY2013 and 10MFY2014. Going forward,
Prime's ability to scale up in a profitable manner, to manage its
working capital intensity and to maintain a healthy financial risk
profile in the context of the moderate scale of operations would
remain key rating drivers.
Prime, an ISO 9001:2008 certified company incorporated in 2009,
was promoted by Mr. Praduman Patel and his family members. Mr.
Patel has been associated with this industry for three decades.
Prime is engaged in manufacturing of Polyether PU Foam and
Polyester PU Foam, such as long foam for mattress, pillows, and
cushions and roll foam for lamination of apparels. The company's
PU foam manufacturing facility in Greater Noida, Uttar Pradesh has
a manufacturing capacity of 10,000 MT per annum and has been
operational since October 2010.
Recent results
Prime reported a profit after tax (PAT) of INR1.91 crore on an
operating income of INR93.14 crore in FY 2012-13 as compared to
PAT of INR0.31 crore on an operating income of INR71.45 crore in
FY 2011-12.
RAJASTHAN ISPAT: ICRA Reaffirms 'B+' Rating on INR25cr Loan
-----------------------------------------------------------
ICRA has re-affirmed the long term rating of [ICRA]B+ to the
INR25.00 crore (enhanced from INR20 crore) fund based facilities
of Rajasthan Ispat Udyog.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based limits 25.00 [ICRA]B+ re-affirmed
The rating reaffirmation takes into account the operational
weaknesses arising out of a highly competitive industry
environment characterized by the presence of a large number of
players and vulnerability to adverse movements in steel prices.
The financial profile of the firm also remains weak marked by low
profitability inherent in the trading business, and highly geared
capital structure. The rating, however favorably takes into
account the long experience of promoters of over four decades,
established relationships with customers and suppliers and robust
growth in revenues in the last few years and favorable demand
outlook for the steel products.
Going forward, the ability of the firm to maintain a prudent
capital mix and healthy growth in revenues will remain key rating
drivers.
Rajasthan Ispat Udyog, incorporated in the year 1970 with its head
office in Jaipur, is primarily engaged in trading of iron and
steel products such as TMT Bars, HR Sheet and HR Plates, Angles,
Channels, and beams. The firm is associated with reputed players
like SAIL, TISCO, Jindal Steel & Power, Rashtriya Ispat Nigam,
Premier bars Pvt. Ltd., etc. from whom it procures its products.
RIU is professionally managed by Mr. Khandelwal who has more than
4 decades of experience in steel trading business.
Recent Results
During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR1.92 crore on an operating income of
INR289.03 crore as against PAT of INR2.48 crore on an operating
income of INR257.64 crore in 2011-12. For the current year, the
firm has achieved sales of INR335 crores till date.
RAVINDRA RICE: ICRA Reaffirms 'B+' Rating on INR12cr Loan
---------------------------------------------------------
ICRA has re-affirmed [ICRA]B+ rating to INR12.00 crore(enhanced
from INR8.00 crore) bank lines of Ravindra Rice & General Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 12.00 [ICRA]B+ (re-affirmed)
The rating continues to be constrained by RRM's presence in a
highly competitive nature of the industry, its moderate scale of
operations, weak profitability metrics, high gearing level and
consequently weak debt protection indicators. The rating is also
constrained by its stretched liquidity position as reflected by
consistently high working capital limits utilization arising out
of high inventory holding period and risks inherent in a
partnership firm like limited ability to raise equity capital,
risk of dissolution due to death/retirement/insolvency of partners
etc. However, the ratings favorably factor in RRM's experienced
promoters with long track record in rice milling industry.
Ravindra Rice & General Mills is a partnership firm promoted by
Mr. Ravindra and his family members. The firm is primarily engaged
in milling of basmati rice. The firm is also engaged in converting
semi processed rice into parboiled Basmati rice. RRM's milling
unit is based out of Jalalabad, Distt. Ferozpur, Punjab which is
in close proximity to the local grain market.
Recent Results
During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR0.09 crore on an operating income of
INR26.92 crore as against PAT of INR0.07 crore on an operating
income of INR19.64 crore in 2011-12. As per the provisional
figures, the firm reported sales of INR29 crore (ytd).
RELIANCE INDUSTRIAL: ICRA Reaffirms B- Rating on INR10.5cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B- rating to the INR8.5 crore cash
credit (e-DFS facility) and INR2.0 crore cash credit facility of
Reliance Industrial Consortium Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit (e-DFS) 8.5 [ICRA] B- Reaffirmed
Cash Credit 2.0 [ICRA] B- Reaffirmed
The rating reaffirmation continues to take into consideration
RICL's weak financial profile as characterised by low
profitability as inherent in the car dealership business, an
adverse capital structure and depressed debt coverage indicators.
ICRA also notes that RICL operations are limited to the State of
West Bengal leading to high geographical concentration risk and
the company's exposure to the cyclical nature of the automobile
industry, which is currently passing through a weak phase and may
therefore adversely impact RICL's scale of business in the near
term. The rating reaffirmation also takes into account the long
experience of the promoters in the car dealership business and the
consistent growth in the turnover during the past three years.
Established in 1985 by the Kolkata based Himatsingka family, RICL
is TML's (Tata Motors Limited) authorized dealer for the sale of
passenger cars as well as for services and sale of spares in three
districts of West Bengal. Currently, RICL operates through one
showroom, four extension counters and three workshops. The company
is in the process of converting its Siliguri extension counter
into a showroom.
Recent Results
RICL reported a net profit of INR0.47 crore during FY13 on an OI
of INR60.69 crore as against a net profit of INR0.06 crore and an
OI of INR42.67 crore during FY12. RICL also reported a profit
before tax of INR0.19 crores on an OI of INR25.37 crore (both
provisional) during the period April to December 2013.
RUBY BUS: ICRA Downgrades Rating on INR47.99cr Loans to 'B'
-----------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR47.99
crore (enhanced from INR46.98 crore) fund based facility of Ruby
Bus Private Limited to [ICRA]BB- form [ICRA]BB. The outlook on
the long term rating is 'Stable'. ICRA has reaffirmed the short
term rating assigned to the INR7.00 crore non fund based
facilities of RBPL at [ICRA]A4 .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 4.30 Revised to [ICRA]B from
[ICRA]BB- (stable)
Cash Credit Limits 34.70 Revised to [ICRA]B from
[ICRA]BB- (stable)
Working capital 8.99 Revised to [ICRA]B from
term loan [ICRA]BB- (stable)
Inland Guarantees/ 7.00 [ICRA]A4 reaffirmed
LC Limits
The revision of the ratings takes into account the significant
weakening of the financial profile of the company as indicated by
continuing pressures on profitability (net losses during 6M FY14)
as well as the significant deterioration in the capital structure,
liquidity position and debt coverage indicators. The working
capital debt of the company has increased significantly during the
last two fiscals, translating into significantly high gearing of
~4 times and Total Debt/OPBDITA of 5.51 times for the year ended
March 2013 . The debtor and inventory levels of the company
continue to remain stretched leading to the sharp increase in
working capital intensity and stretched liquidity position as
evidenced by high utilization of fund based limits.
The ratings also continue to remain constrained by the
overdependence on one key customer leading to client concentration
risks as well as the fragmented and highly competitive nature of
the bus body building industry which is expected to continue to
exert pressure on the company's margins. In addition to these, the
ratings also factor in the susceptibility of RBPL's business to
the slowdown in the user industry (commercial vehicles) as
witnessed in the past from the relatively large losses incurred in
FY09 as well as in the current fiscal.
The ratings, though, favorably factor in the vast experience of
RBPL's promoters in the bus body building business, its reputed
client profile, flexibility of operations on account of contract
manufacturing coupled with moderate order book position. The
rating also takes into account RBPL's recent foray into
manufacturing of kits wherein the entire bus model is made without
chassis and the expected commercialization of operations under the
luxury bus segment in the near term which is expected to have a
positive effect on the bottom line; although profitably scaling up
of the operations given the large debt repayment obligations would
remain a key rating sensitivity.
Ruby Bus Private Limited (RBPL) was incorporated in the year 1947
and has been a part of the Indian bus body building industry for
over five decades. The company which is engaged in the business of
building bus bodies was promoted by late Mr. Shantilal Kapashi,
grandfather of the current Managing Director Mr. Pankaj Kapashi.
Headquartered in Mumbai, the company has manufacturing facilities
set up at Naroda, Ahmedabad, where it employs about 900 people and
has the capacity and infrastructure to produce 3000 bus bodies per
annum. Over the years, the company, through Tata Exports Ltd. and
Ashok Leyland Ltd., has registered exports of more than 16,000
vehicles to various countries like Sri Lanka, Afghanistan, Ghana,
among many others.
S D RICE: ICRA Reaffirms 'B' Rating on INR12cr Loan
---------------------------------------------------
ICRA has re-affirmed the [ICRA]B rating for INR12.00 crore
(enhanced from INR7.00 crore) fund based bank facilities of S D
Rice Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based limits 12.00 [ICRA]B (re-affirmed)
The rating continues to be constrained by SRM's weak financial
profile, reflected by low profitability metrics, high gearing and
consequently weak debt coverage indicators coupled with high
working capital requirements. The rating also takes into account
high intensity of competition in the industry and agro climatic
risks, which can affect the availability of paddy in adverse
weather conditions. The rating, however favorably takes into
account long standing experience of promoters in rice industry and
the proximity of the mill to major rice growing area which results
in easy availability of paddy.
S D Rice Mill is a partnership firm established in 1983 promoted
by Mr. Darshan Wadhwa and his family members. The firm is
primarily engaged in milling of basmati rice. The firm is also
engaged in converting semi processed rice into parboiled Basmati
rice. SRM's milling unit is based out of Jalalabad, Distt.
Ferozpur, Punjab which is in close proximity to the local grain
market.
Recent Results
During the financial year 2012-13, the company reported a profit
after tax (PAT) of INR0.04 crore on an operating income of
INR26.61 crore as against PAT of INR0.02 crore on an operating
income of INR24.24 crore in 2011-12. For the current year, the
company has reported sales of INR~24 crore till date.
SARASWATI BINDERS: ICRA Suspends 'D' Rating on INR8cr Loans
-----------------------------------------------------------
ICRA has suspended the [ICRA]D rating assigned to the INR2.50
crore cash credit limits, INR4.00 crore working capital term loan,
INR0.93 crore funded interest term loan, and INR0.57 unallocated
facilities of Saraswati Binders Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Incorporated in 2010, Saraswati Binders Private Limited is
primarily engaged in binding and trading of various types of
exercise books. The promoters have been engaged in the business
for more than 15 years. Previously the company was a
proprietorship concern with the name of Saraswati Book Binders.
SHARE MICROFIN: ICRA Lowers Rating on INR253.18cr Loans to 'D'
--------------------------------------------------------------
ICRA has revised the ratings assigned to the Non Convertible
Debenture/subordinated debt programme aggregating to INR125 crore
and the INR128.18 crore bank lines of Share Microfin Limited (SML)
from [ICRA]C to [ICRA]D (pronounced ICRA D). ICRA has reaffirmed
the rating assigned to the INR1.93 crore bank limit (which was not
restructured by the lenders) of SML at [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term NCD programme 25 Revised from [ICRA]C
to [ICRA]D
Long Term Subordinated 100 Revised from [ICRA]C
Debt/NCD programme to [ICRA]D
Long Term Bank Limits 128.18 Revised from [ICRA]C
to [ICRA]D
Long Term Bank Limits 1.93 Reaffirmed at [ICRA]D
The revision in ratings of SML factors in the delays in debt
servicing by SML owing to the stretched liquidity position of the
company arising out of the negligible collections from Andhra
Pradesh (Andhra Pradesh(AP) constituted over 50% of SMLs portfolio
of INR1809 crore as on December 31, 2013) and a reduction in the
performing Non AP portfolio of the company leading to a reduction
in interest income earned and the higher debt repayments to be
made as per the Corporate Debt Restructuring (CDR) package
(moratorium ended in March 2012, with 10% principal repayment to
be made in FY2013 and 15% in FY2014). Going forward, ability of
the company to tie-up funds to grow its Non-AP portfolio to would
be critical for its turnaround and ability to meet its debt
obligations. In March 2014, the company has received an approval
for additional funding from the CDR cell. Further, the company
would also require external equity as the company had a negative
net worth as on March 31, 2013 owing to the 100% provisions made
by the company for the delinquent AP portfolio. The company has
applied for regulatory forbearance from RBI for not complying with
Net Owned Funds and Capital Adequacy Ratio criteria.
SHARE Microfin Limited was founded by Mr. Udaia Kumar in the year
1999-2000 as public limited company. It became a registered Non
Banking Finance Company (NBFC) in 2000 and was the first
Microfinance Institution (MFI) to obtain a NBFC (Non Deposit
taking) license. SML is engaged in micro finance lending
activities. SML has a portfolio of INR1,809.2 crore as on
Dec. 31, 2013.
SHIVAM COTTON: CRISIL Reaffirms 'B' Rating on INR52MM Loans
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Shivam Cotton
Industries (Bhavnagar) continues to reflect SCI's nascent stage of
operations in the intensely competitive cotton industry, and its
large and seasonal working capital requirements. The rating also
factors in the firm's average financial risk profile, marked by
high gearing and average debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
SCI's promoters in the cotton industry and the benefits it derives
from the proximity of its plant to the cotton-growing belt.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 30 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2 CRISIL B/Stable (Reaffirmed)
Term Loan 20 CRISIL B/Stable(Reaffirmed)
Outlook: Stable
CRISIL believes that SCI will continue to benefit over the medium
term from its promoters' experience in the cotton industry. The
outlook may be revised to 'Positive' in case of a sizeable and
sustainable improvement in the firm's scale of operations and
profitability or substantial equity infusion, leading to
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if SCI's operating margin is lower-
than-expected, or if it undertakes a significant debt-funded
expansion programme, or if its working capital management
deteriorates, leading to deterioration in its financial risk
profile.
SCI, set up in 2012, is in the cotton ginning and pressing
business. It is promoted by Bhavnagar (Gujarat)-based Mr.
Pragjibhai Padharia and his family. Mr. Padharia has over two
decades of experience in the cotton industry.
SCI reported a net profit of INR0.3 million on net sales of INR102
million for 2012-13 (refers to financial year, April 1 to
March 31).
SILKTEX LIMITED: ICRA Suspends 'D' Rating on INR16.84cr Loans
-------------------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR6.84 crore
long term facilities & INR8.00 crore fund based facilities and the
INR2.00 crore non-fund based facilities, of Silktex Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 6.84 [ICRA] D Suspended
Fund based facilities 8.00 [ICRA] D Suspended
Non-fund based facilities 2.00 [ICRA] D Suspended
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Silktex Limited was incorporated as a private limited company in
August 1993 and subsequently converted to public limited company
on 28th July 1994. The company is a 100% Export Oriented Unit
manufacturing silk fabrics for home furnishing and dress material.
The company exports its products mainly in USA, UK, West European
countries, Middle East countries, Australia and Japan.
SMT. VISHNU: ICRA Reaffirms 'D' Rating on INR8cr Term Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to the INR8.00
crore fund based limits of Smt. Vishnu Devi Educational Trust at
[ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based Limit- 8.00 [ICRA]D reaffirmed
Term Loan
The rating reaffirmation takes into account the continuing delays
in servicing of debt obligations by the trust due to stretched
cash flow position resulting from low fee receipts given modest
enrolments in the recently established 'KN International School'.
Although the enrolments have increased in last year, the fee
receipts continue to remain insufficient to support debt
servicing. As a result promoters continue to support the trust in
order to meet the funding gaps albeit with a delay. ICRA however
notes that school has relatively good infrastructure which could
enable the trust to increase enrolments going forward.
Smt. Vishnu Devi Educational Trust owns and manages KN
International School at Bharatpur Road, Mathura (Uttar Pradesh).
The school is constructed in approx. 12.5 acres and is affiliated
to CBSE. The first batch commenced studies from AY 2011-12 and in
the AY 2013-14, school had 280 students in various classes from I
to IX. Trust recently started two pre-schools under the name of K
N Kids World, one each in Mathura and Bharatpur.
The trust is promoted by the Agarwal family which has presence in
mustard oil business through group entities: Hari Oil & General
Mills (produces 'Engine' brand of mustard oil) and Shree Hari
Industries ([ICRA]BB- Stable) which manufactures mustard oil and
mustard cakes.
SODHI BROTHERS: ICRA Ups Rating on INR22.60cr Loan to 'C'
---------------------------------------------------------
ICRA has upgraded rating to [ICRA]C from [ICRA]D for INR22.60
crore long term bank limits of Sodhi Brothers Hydro Power Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based Limits- 22.60 [ICRA]C (Upgraded from
Term Loan ICRA D)
The rating action factors in resumption of timely debt servicing
by Sodhi Brothers Hydro Power Private Limited which operates a 4
MW hydro power project in Himachal Pradesh. The rating also draw
comfort from the company's off take arrangement with Himachal
Pradesh State Electricity Board (HPSEB) for tenure of 40 years and
limited demand risks due to energy deficit in northern India.
However the rating is constrained by weak financial position; with
continued losses at net level during FY2012-13 on account of high
interest charges which have led to inadequate accruals. The rating
is also constrained by high hydrological risks as SBHPP is not
covered under deemed generation clause in case of factors like
shortage of water or loss of generation due to silting, etc.
Sodhi Brothers Hydro Power Private Limited is a private limited
company operating a 4 MW run of the river hydel power plant which
utilizes the water of Bakhli Khad, a tributary of river Beas in
district Mandi of Himachal Pradesh. The plant commenced commercial
operations in December 2010. The total cost of the project is
INR37.66 crore (including a cost overrun of INR2 crores), which is
funded by debt of INR23.38 crore and promoter's equity of INR14.38
crore. SBHPP has entered into a PPA of 40 years with HPSEB for
sale of power generated from the project at a fixed tariff of
INR2.95 per unit. The project is expected to generate 24.6 MU in a
75% dependable year.
Recent Results:
SBHPP reported a net loss of INR0.30 crore on an operating income
of INR5.14 crore for FY2013 as against a net loss of INR0.99 crore
on an operating income of INR4.57 crore for FY2012.
SREEPATHY TRUST: CRISIL Assigns 'B' Rating to INR90MM Loans
-----------------------------------------------------------
CRISIL has assigned 'CRISIL B/Stable 'rating on the long term bank
facilities of Sreepathy Trust.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 40 CRISIL B/Stable
Overdraft Facility 25 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 25 CRISIL B/Stable
The rating reflects ST's below-average financial risk profile
marked by highly leveraged capital structure, its exposure to
intense competition, and susceptibility to the highly regulated
environment in the education sector. These rating weaknesses are
partially offset by ST's established regional market position and
need-based funding support the trust enjoys from its trustees.
Outlook: Stable
CRISIL believes that ST will continue to benefit over the medium
term from its established regional market position. The outlook
may be revised to 'Positive' if it reports significant improvement
in its scale of operations along with stable margins, leading to
sustained improvement in cash accruals and capital structure.
Conversely, the outlook may be revised to 'Negative' if the trust
undertakes any larger-than-expected debt-funded capital
expenditure programme, or if it faces any adverse regulatory
change, resulting in significant decline in its student intake or
its cash accruals.
Set up in 2009, ST runs an educational institution in Thrissur
(Kerala) offering courses in the engineering stream.
SRI VENKATESWARA: ICRA Lowers Rating on INR9.5cr Loans to 'D'
-------------------------------------------------------------
ICRA has revised the long-term rating assigned to INR6.90 crore
fund based limits from [ICRA]B to [ICRA]D and revised the short
term rating assigned to INR2.60 crore non-fund based limits from
[ICRA]A4 to [ICRA]D of Sri Venkateswara Infratech.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limit 6.90 [ICRA]D revised
Non Fund based limit 2.60 [ICRA]D revised
The rating revision takes into account consistent overutilization
of working capital limits and devolvement on letter of credit
limits by SVI owing to delays in receiving the payments from
clients. The ratings continue to be constrained by small scale of
operations and modest financial profile of the firm characterized
by moderate profitability and moderate gearing levels. The ratings
are further constrained by highly competitive nature of the
construction industry thereby restricting the operating margins;
high geographic concentration risk with 100% of orders from
Karnataka and high client concentration risk. In addition, the
ratings are constrained by the risks inherent in the partnership
nature of the firm and revenue generation exposed to delays in
project execution as the firm has limited number of projects in
the order book. However, the ratings factor in the visibility for
revenue in the near term as reflected by healthy order book of
INR60.84 crore.
Founded in 2011, Sri Venkateswara Infratech was founded by Mr. M
Venkateswara Rao & Mr. M Srinivas Chowdary to undertake civil
construction works. The firm has received two work orders on a
subcontract basis from Chadalavada Infratech Private Limited
(CIPL) and the works included electrical distribution network
strengthening works in Mysore city area under R-APDRP (Re-
structured Accelerated Power Development and Reform Program)
project scheme on total turnkey basis for CESCO (Chamundeshwari
Electricity Supply Corporation Limited), Mysore.
STAARLIGHT DESIGNS: CRISIL Assigns 'B+' Rating to INR60MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4'rating to the
long-term bank facilities of Staarlight Designs.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Standby Line of
Credit 2 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 54.5 CRISIL B+/Stable
Foreign Demand Bill
Purchase 20 CRISIL A4
Cash Credit 3.5 CRISIL B+/Stable
Export Packing Credit 20 CRISIL A4
The rating reflects SD's modest scale of operations in the
intensely competitive and highly fragmented ready-made garments
(RMG) industry, and its below-average financial risk profile,
marked by a modest net worth and weak debt protection metrics.
These rating weaknesses are partially offset by the extensive
experience of the firm's promoters in the RMG industry.
Outlook: Stable
CRISIL believes that SD will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established client relationships. The outlook may be revised to
'Positive' in case of a sustained increase in the firm's scale of
operations and profitability, resulting in improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if SD's revenue or profitability declines considerably,
or its working capital management deteriorates resulting in
stretched liquidity, or if it undertakes a substantial debt-funded
capital expenditure programme, resulting in weakening of its
financial risk profile.
Established in 1999, SD manufactures and exports knitted garments
to various companies in Europe. The firm has its manufacturing
facility at Tirupur (Tamil Nadu) and is promoted by Mr. B.M
Ravichandran and Mr. M. Karuppusamy.
For 2012-13 (refers to financial year, April 1 to March 31), SD
reported a profit after tax (PAT) of INR1.7 million on net sales
of INR119.7 million, against a PAT of INR0.9 million on net sales
of INR86.3 million for 2011-12.
====================
N E W Z E A L A N D
====================
KING TOYOTA: Car Dealership Placed in Receivership
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Nicholas Boyack at The Dominion Post reports that high profile car
dealership King Toyota is in receivership, with creditors owed an
estimated NZ$5 million. Owner David Clarke called in the
receivers after having a very quiet February, the report says.
Ten of the 51 staff have been laid off but the business continues
to run as normal, the report relates.
According to the report, PriceWaterhouseCoopers receiver
John Fisk -- john.fisk@nz.pwc.com -- believes it has a good future
and there is every prospect it can be sold. The business, he
said, appears to have been under capitalised.
"It is early days, we have not really got to why the business
failed but a lack of capital is probably a good summary," the
report quotes Mr. Fisk as saying.
Toyota New Zealand is standing by the firm and Mr. Fisk said all
warranties will be honoured, the report adds.
King Toyota has two sites in Lower Hutt and one in Upper Hutt.
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Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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