/raid1/www/Hosts/bankrupt/TCRAP_Public/140811.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, August 11, 2014, Vol. 17, No. 157
Headlines
A U S T R A L I A
NCIG HOLDINGS: Moody's Changes Ba2 Rating Outlook to Positive
ONSITE RENTAL: S&P Assigns 'B' ICR; Outlook Stable
PENRICE SODA: In Liquidation; To Face Insolvent Trading Claims
C H I N A
LDK SOLAR: Liquidators Raise Needed Funds to Exit Insolvency
YINGDE GASES: Moody's Affirms Ba2 CFR; Outlook Stable
I N D I A
AANANDAM JEWELLERS: ICRA Suspends 'B+' Rating on INR8cr Loan
AASU EXIM: ICRA Suspends 'B+' Rating on INR3.50cr Loans
AMTRAK TECHNOLOGIES: CRISIL Reaffirms B+ Rating on INR7.5MM Loan
ANGEL EXIM: CRISIL Assigns 'B+' Rating to INR5MM Cash Credit
ARTIZ CERAMIC: ICRA Revises Rating on INR6.63cr Loans to 'B+'
BERRY ALLOYS: CRISIL Suspends 'B-' Rating on INR385MM Loans
BHANDARI DEEPAK: CRISIL Suspends 'D' Rating on INR75MM Loans
BTC INDUSTRIES: CRISIL Suspends 'D' Rating on INR300MM Loans
CBC FASHIONS: ICRA Suspends 'B+' Rating on INR5cr Term Loan
COOCH BEHAR: CRISIL Suspends 'D' Rating on INR200MM Term Loan
DAAJ HOTELS: ICRA Upgrades Rating on INR79.5cr Loan to 'C+'
DEV BHUMI: CRISIL Suspends 'D' Rating on INR107MM Loans
DIAMOND CONSTRUCTION: ICRA Assigns 'B+' Rating to INR13.5cr Loans
DOLPHIN INT'L: CRISIL Suspends 'D' Rating on INR215MM Loans
EXCLUSIVE STEEL: CRISIL Suspends 'D' Rating on INR216.4MM Loans
FLORIDA ELECTRICAL: ICRA Assigns 'B+' Rating to INR8cr Loans
GNA UDYOG: CRISIL Suspends 'D' Rating on INR600MM Loans
HIMATSINGKA RESORTS: CRISIL Suspends D Rating on INR64.5MM Loans
HUNSUR PLYWOOD: ICRA Reaffirms 'B+' Rating on INR4.50cr Loan
J. J. CONSTRUCTIONS: ICRA Reaffirms 'B' Rating on INR15cr Loan
JALAN JODHAWAT: ICRA Cuts Rating on INR5cr Term Loan to 'D'
KAMALA COLD: CRISIL Reaffirms 'D' Rating on INR73.6MM Loans
LOK RAJ: ICRA Suspends 'B+' Rating on INR18cr Loans
M.E. PROJECT: ICRA Suspends 'B+' Rating on INR15cr Loans
MARUTI COTTON: ICRA Reaffirms 'B' Rating on INR8.60cr Loans
MAXHEAL LABORATORIES: ICRA Suspends 'D' Rating on INR17.81cr Loan
MAXHEAL PHARMA: ICRA Suspends B/A4 Rating on INR17cr Bank Loan
NARCISSUS MEDICAL: CRISIL Assigns 'B+' Rating to INR60MM Loans
ORBIT AVIATION: CRISIL Suspends 'D' Rating on INR280MM Loan
PG ASSOCIATES: CRISIL Reaffirms 'B' Rating on INR105MM Loans
PREET LAND: CRISIL Suspends 'D' Rating on INR300MM Cash Credit
RAJIT PAINTS: CRISIL Suspends 'D' Rating on INR672MM Loans
SAINOR LIFE: CRISIL Suspends 'C' Rating on INR150MM Loans
SANKALP ENGINEERING: ICRA Assigns 'D' Rating to INR30cr Loan
SHANTI DEVELOPERS: ICRA Assigns 'B-' Rating to INR7.40cr Loan
SHREE HANS: ICRA Reaffirms 'B+' Rating on INR4cr Loans
SHREE KRISHNA: CRISIL Suspends 'D' Rating on INR110MM Loans
SIGNET PRODUCTS: CRISIL Puts 'B' Rating on Notice of Withdrawal
SREE RAYALSEEMA: CRISIL Suspends 'D' Rating on INR220MM Loans
SRI DHARMA: CRISIL Reaffirms 'B' Rating on INR63.8MM Loans
SUBHASH STONE: CRISIL Suspends 'D' Rating on INR68MM Loans
THANGA PRATAPH: ICRA Raises Rating on INR11.92cr Loans to 'C+'
TIGER INFRAPROJECTS: ICRA Withdraws B+ Rating on INR3.75cr Loan
VENKATESH FOUNDATION: CRISIL Suspends D Rating on INR150MM Loans
VSN HATCHERIES: ICRA Suspends 'D' Rating on INR13cr Loan
WINNER FOUNDATIONS: CRISIL Suspends 'B+' Rating on INR100MM Loan
M A L A Y S I A
MALAYSIA AIRLINES: To Be Delisted in $429 Million Buyout
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A U S T R A L I A
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NCIG HOLDINGS: Moody's Changes Ba2 Rating Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on the senior
secured Baa3 senior secured rating of Newcastle Coal
Infrastructure Group Pty Ltd (NCIG) and the Ba2 rating of its
parent NCIG Holdings Pty Ltd (together "the group") to positive
from stable, and has at the same time affirmed both ratings. NCIG
has economic ownership of, and operates a coal terminal located at
the Port of Newcastle in New South Wales, Australia.
Ratings Rationale
"The outlook change reflects the successful ramp-up of the third
and final stage of NCIG's capital expansion program ("2F"), which
increased nominal capacity to 66mtpa", says Arnon Musiker, a
Moody's Vice President and Senior Credit Officer.
"Execution risk associated with stage 2F was previously the main
constraint on the rating, and its successful completion (below
time and budget) and the subsequent ramp-up to nominal capacity is
putting upward pressure on the ratings," Musiker adds.
"The change in outlook to positive also considers the recent
US$317 million of debt reduction following the completion of stage
2F," Musiker says, adding, "this debt reduction was not
incorporated in Moody's original base case expectation."
"Whilst the coal market is experiencing challenging conditions,
with volatile and falling prices exerting pressure on marginal
mines, coal export volumes continue their upward trend. Moreover,
NCIG's contractual arrangements with its mine counterparties
adequately mitigate coal market risk at the rating level."
NCIG's senior secured investment grade rating primarily reflects
its character as an essential component of the logistics chain
which serves the large and globally competitive coal reserve bases
present in the Hunter and Newcastle regions of New South Wales
(NSW) Australia.
Moody's base case expectation is that NCIG's mine counterparties
will remain sufficiently viable at prevailing coal prices for the
purposes of continuing production for export demand.
The condition that a shipper provides an effective notice -- nine
years before -- should it wish to terminate a ship-or-pay
agreement, coupled with the requirement for increased toll charges
to amortise its pro-rata share of debt over the notice period,
provides further rating support. A similar provision applies if a
shipper's mine reserves decline below 1.1x of its contractual
throughput commitment.
The stability of the group's cash flows reflects the take-or-pay
nature of the ship-or-pay agreements with its counterparties. Most
of its shippers (around 82%) are also the group's shareholders, a
situation which strongly aligns the economic interests of the
terminal (and its creditors) with its shippers.
"Such an alignment occurs because NCIG's business model is based
on cost recovery, as opposed to profit maximization, thereby
avoiding the inherent conflict between minimizing shipping charges
and maximizing equity profits," says Musiker.
NCIG's senior secured rating could be upgraded to Baa2 and NCIG
Holding's senior unsecured rating to Ba1 if throughput continues
at stable levels and if there is no material deterioration in
counterparty credit profiles. The latter would most likely occur
as a result of depressed coal prices -- particularly thermal --
pressuring the solvency of mines.
The rating could face downward pressure should Moody's expect
NCIG's financial performance to materially deteriorate without
corresponding deleveraging. This could result from higher-than-
anticipated credit spreads on refinancing, or failure of a mine
counterparty's owner to stand behind the obligations of a failed
mine. Material breaches of environmental regulations could also
pressure the rating. Financial indicators that could result in a
downgrade include financial leverage, as measured by the ratio of
funds from operations (FFO) to debt, under 5% on a sustained basis
after factoring in headroom available under the toll tariff
mechanism. Moody's base case expectation for FFO/debt calculated
on this basis is the low-double digit region.
ONSITE RENTAL: S&P Assigns 'B' ICR; Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' issuer credit
rating to Australia-based equipment rental provider Onsite Rental
Group Pty Ltd. The outlook on the rating is stable. At the same
time, S&P assigned its 'B' issue credit rating and recovery rating
of '3' to Onsite Rental Group's US$320 million, first-lien, senior
secured, Term Loan B issue.
The 'B' issuer credit rating on Onsite Rental Group reflects S&P's
view of the company's business risk profile as "weak" and its
financial risk profile as "aggressive". The issue rating on the
first-lien, senior secured, U.S. Term Loan B of 'B' and recovery
rating '3' reflect S&P's expectation of "meaningful" recovery
prospects (50%-70%) in the event of default.
"The stable outlook reflects our expectations of a gradual
increase in the company's revenue and a relatively stable
utilization rate and EBITDA margin. This should enable Onsite
Rental Group to maintain a debt-to-EBITDA ratio of lower than 4x
in the next couple of years," said Standard & Poor's credit
analyst Meet Vora.
The stable outlook also reflects S&P's expectations that the end-
market diversity should enable the company to weather the
softening demand from construction activities, particularly in the
resources sector.
"We could lower the ratings on Onsite Rental Group if we expect
any deterioration in the credit metrics, particularly if its debt
to EBITDA stays in the high 4x for an extended period," said
Mr. Vora. "This would most likely occur if the trading condition
is worse than expected, thereby weakening the earnings prospects
and margins; or more shareholder-friendly initiatives after its
proposed one-time dividends in 2015."
Given the current ownership structure, S&P sees the possibility of
an upgrade as less likely in the near term. However, S&P could
consider raising the ratings if its concerns surrounding the
negative comparable rating-adjustment modifier subsides--when the
company develops a track record of operating at current size and
improves its free operating cash flow-to-debt metric.
PENRICE SODA: In Liquidation; To Face Insolvent Trading Claims
--------------------------------------------------------------
Simon Evans at The Sydney Morning Herald reports that the
Australian Securities and Investments Commission wants more
details from the administrators of Penrice Soda Holdings, who say
they have clear grounds to pursue an insolvent trading claim
against directors for as much as AUD22.5 million.
McGrathNicol partner Sam Davies told creditors August 5 he
believed Penrice had been trading insolvently for at least nine
months before it was placed in administration on April 11 with
more than AUD150 million of debt, according to SMH.
The report relates that Mr. Davies informed ASIC, the corporate
regulator, which asked for more detail as part of its own
examination. "We have formed a view that the company has been
trading insolvently."
He said McGrathNicol believed Penrice was already insolvent on
July 1, 2013, because banking facilities with National Australia
Bank and Westpac, now owed AUD111 million in total, were already
fully drawn and cash-trading losses were being incurred, the
report relates.
Statutory authorities and regulators such as the Environment
Protection Authority and Revenue SA were not having their debts
paid either, SMH notes.
SMH says an air of resignation pervaded the second meeting in
Adelaide of 60 creditors, including dozens who will not receive
anything. Andrew Milton, from Milton Transport, is owed AUD245,000
and wanted to know if the AUD2 billion listed cement group
Adelaide Brighton would still need aggregate and other minerals
transported from the quarry it bought from the administrators.
The question was referred to Adelaide Brighton, the report notes.
McGrathNicol shut down the only other Penrice asset, an aging
chemicals plant in the Adelaide industrial suburb of Osborne, in
June, costing 100 jobs, SMH recalls.
Creditors voted to liquidate the company on August 6, notes SMH.
According to the report, Mr. Davies said a lot more work was
needed on the proposed insolvent trading claim and its funding.
There was a clear basis for proceeding, but it might not succeed
because of legalities, the report relays.
"That is a very detailed piece of work." He said directors had
indemnity insurance and the underwriter of those policies had
already been notified, the report relays.
SMH says two directors, former chief executive Guy Roberts and
former deputy chairman Andrew Fletcher, were both at the meeting
on August 6, but former chairman David Trebeck was not.
Australian-based Penrice Soda Holdings Limited (ASX:PSH ) --
http://www.penrice.com.au/-- is engaged in the manufacture,
distribution and sales of soda ash and sodium bicarbonate and the
mining, distribution and sale of quarry and mineral products.
McGrathNicol announced on April 11, 2014, that partners
Sam Davies, Peter Anderson, and Thea Eszenyi have been appointed
joint and several Voluntary Administrators to Penrice Soda
Holdings Ltd and its subsidiaries. The Penrice Group consists of:
PSH;
Penrice Soda Products Pty Ltd;
Penrice Pty Ltd;
PSP SPV Pty Ltd;
Penrice Finance Pty Ltd;
Penrice Holdings Pty Ltd; and
Penrice Soda JV Pty Ltd.
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C H I N A
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LDK SOLAR: Liquidators Raise Needed Funds to Exit Insolvency
------------------------------------------------------------
Max Hall at pv-magazine reports that LDK Solar and its joint
provisional liquidators (JPLs), said they have raised sufficient
finance to steer through plans for an offshore -- outside its
Cayman Islands-registered base -- restructuring.
According to the report, LDK and JPLs Tammy Fu and Eleanor Fisher,
both of Zolfo Cooper (Cayman) Limited, are seeking permission from
the Cayman Court to extend the deadline for completion of the
restructuring and to ratify a deal negotiated with preferred
creditors.
Having announced, on July 15, it had secured a commitment from
Heng Rui Xin Energy to supply $10 million in cash and $14 million
in working capital financing -- as well as $5 million towards the
restructuring from various LDK subsidiaries -- and having since
raised a further $3.2 million from internal accounts receivables;
LDK and the liquidators said they have raised the exit financing
needed to complete the restructuring, notes the report.
pv-magazine relates that the company announced on August 6 it has
agreed with the holders of the 10% notes that LDK defaulted on in
February -- sparking insolvency proceedings and a de-listing from
the New York Stock Exchange -- as well as with 78% of the holders
of convertible preferred shares with claims against the company,
and with shareholders, to halve the cash-out option to creditors
from $0.20 in the dollar to $0.10.
The report notes that LDK now wants the Cayman Court to ratify
that amendment to its restructuring support agreement (RSA) and to
extend the deadline for completing restructuring to September 30,
with an automatic further extension to November 14, provided it
files its scheme of agreement for the restructure at the Cayman
Court by the end of the month.
LDK is also seeking permission to negotiate with other creditors
by offering a mix of cash, equity and convertible securities, says
pv-magazine.
The debt-laden manufacturer has already had the reassurance of
state backing with the China Development Bank leading a consortium
of 11 lenders offering CNY2 billion ($324 million) in financing,
on May 27, adds pv-magazine.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar Co disclosed a net loss of $1.05 billion on $862.88
million of net sales for the year ended Dec. 31, 2012, as compared
with a net loss of $608.95 million on $2.15 billion of net sales
for the year ended Dec. 31, 2011.
KPMG, in Hong Kong, China, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that the Group has
a net working capital deficit and a deficit in total equity as of
Dec. 31, 2012, and is restricted from incurring additional
indebtedness as it has not met a financial covenant ratio as
defined in the indenture governing the RMB-denominated US$-settled
senior notes. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
YINGDE GASES: Moody's Affirms Ba2 CFR; Outlook Stable
-----------------------------------------------------
Moody's Investors Service has affirmed the Ba2 corporate family
rating of Yingde Gases Group Company Limited with a stable
outlook.
The affirmation followed the recent 1H 2014 result announcement of
the company.
Ratings Rationale
According to the company's announcement, Yingde Gases' operating
performance in 1H 2014 remained robust and was in line with
Moody's expectation.
Its reported EBITDA grew 21% year-on-year on the back of a 16%
year-on-year growth in revenue and a reduction in selling, general
and administrative expenses.
Moody's expects Yingde Gases to maintain solid performance over
the next 1-2 years on the back of a production ramp up at its
newly commissioned facilities.
However, this positive impact will be offset by its sizeable
capex, which will remain elevated and will continue to outpace its
operating cash flow.
Yingde Gases' capex in 2014 is expected to reach about RMB3.5
billion for the construction of new facilities. In addition, its
cash collection, despite an improvement, has been adversely
impacted by the longer receivables period for steel customers and
the expiration of tax holidays for certain subsidiaries in China.
In this regard, Moody's expects Yingde Gases' debt/EBITDA and
EBITDA/interest to stay at around 4.0x and 3.5x, respectively,
over the next 12--18 months, which is similar to the levels
recorded in 2013. Such credit metrics are in line with its Ba2
corporate family rating, given the defensive nature of its
business model.
That said, these credit metrics do not provide adequate leeway for
further deterioration at the current rating level.
Moody's expects Yingde Gases' liquidity will remain moderate in
the next 12 to 18 months. This assessment is based on its small
cash balance of about RMB853 million at end-June 2014, which is
well below its RMB1.5 billion in short-term debt.
This situation, and an expected negative free cash flow, mean that
ongoing access to the funding market is critical. However, this is
mitigated by the company's track record of revolving existing
loans and raising new bank loans, as well as its ability to
postpone some of its capex.
The stable ratings outlook reflects the sustainable character of
the company's gross cash flow through the cycle and an expectation
that its debt leverage will remain stable over the next 12 months.
Yingde Gases' ratings could be upgraded if the company: (1)
improves its business scale and customer diversification, and
enhances debt/EBITDA below 3.0x; and (2) maintains retained cash
flow (RCF)/net debt above 30% on a sustained basis.
However, upward rating pressure is limited at this stage, given
the company's moderately high debt leverage and continued large
capex against the backdrop of its relatively small and
concentrated business profile.
On the other hand, Yingde Gases could experience downward rating
pressure if it: (1) further increases debt leverage through
aggressive expansion, such that debt/EBITDA is above 4.5x, or; (2)
experiences an unexpected deterioration in its gross cash flow,
such that RCF/net debt is below 12%-15%.
The principal methodology used in this rating was the Global
Chemical Industry Rating Methodology published in December 2013.
Yingde Gases Group Company Limited is one of the largest players
in the independent industrial gas market in China. The company
reported revenue of RMB6.87 billion in 2013. It had a total of 61
production facilities in operation and another 38 under
development at June-2014. On-site gas production accounted for
about 80%-90% of Yingde Gases' revenues, with the rest coming from
merchant sales.
The company listed on the Hong Kong Stock Exchange in September
2009. The executive directors and founders, Zhongguo Sun, Zhao
Xiangti and Trevor Raymond Strutt, held equity stakes of 19.25%,
13.72%, and 10.02%, respectively, at end-2013.
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I N D I A
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AANANDAM JEWELLERS: ICRA Suspends 'B+' Rating on INR8cr Loan
------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR8.0
crore fund based facilities of Aanandam Jewellers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Facility 8.0 [ICRA]B+; Suspended
The suspension follows ICRA's inability to carry out a rating
surveillance due to non cooperation from the company.
AASU EXIM: ICRA Suspends 'B+' Rating on INR3.50cr Loans
-------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ outstanding on
the INR3.0 crore long term loans and INR0.50 crore long-term, fund
based facilities of Aasu Exim Private Limited. ICRA has also
suspended the short term rating of [ICRA]A4 outstanding on the
INR5.50 crore short term facilities of the company. Of the INR5.50
crore, short-term facilities, INR3.00 crore are interchangeable
with INR3.00 crore term loan with total utilization not exceeding
INR3.00 crore. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
Aasu Exim Private Limited was incorporated in 1984 as an importer
of man-made yarn fibres. Managed by Mr. Raj Kumar Kaushik, the
company has entered into manufacturing of grey knitted fabrics in
FY 2011 as yarn trading activities were becoming less lucrative.
The company imports select variants of fibres (PTY, PFY and Nylon
filaments) from Taiwan, Indonesia, China and Japan.
AMTRAK TECHNOLOGIES: CRISIL Reaffirms B+ Rating on INR7.5MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Amtrak Technologies Pvt
Ltd continue to reflect ATPL's low profitability due to intense
competition, and its working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 100 CRISIL A4 (Reaffirmed)
Cash Credit 7.5 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term
Bank Loan Facility 12.5 CRISIL A4 (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of the company's promoters in the information
technology (IT) industry and its strong relationships with
customers and suppliers.
Outlook: Stable
CRISIL believes that ATPL will continue to benefit over the medium
term from the extensive industry experience of its promoters and
its established relationships with customers and suppliers. The
outlook may be revised to 'Positive' if ATPL improves its
profitability, while achieving a substantial increase in its scale
of operations and an improvement in its working capital cycle.
Conversely, the outlook may be revised to 'Negative' if the
company's revenue growth slows down, or its capital structure or
debt protection metrics deteriorate leading to deterioration in
its financial risk profile.
Update
ATPL's scale of operations has improved substantially in 2013-14
(refers to financial year, April 1 to March 31), and it is
expected to register revenue of INR570 million during the year.
This is higher by 60 per cent as compared with INR350 million in
2012-13, and also better than CRISIL's projections of INR340
million. The revenue growth was driven by the increased order
inflow for the company, especially during the second half of the
year. The growth momentum is expected to continue in 2014-15 with
a further scale-up in operations as evident from its healthy order
book. However, the company's operating margin has remained subdued
at 3.65 per cent in 2013-14 as compared with 4.45 per cent in
2012-13 due to large projects entailing lower profitability.
ATPL's financial risk profile has remained average with high
gearing of 2.03 times as on March 31, 2014, higher than CRISIL
projections and past levels, as large orders at the year-end led
to higher short-term debt for procuring raw materials. The
company's interest coverage ratio has significantly improved due
to the increasing scale of operations, and is estimated at 2.5
times for 2013-14, as against 1.94 times in 2012-13.
ATPL's liquidity has remained adequate, with moderate utilisation
of bank lines and sufficient cash accruals to repay debt
obligations over the medium term. Trade credit offered by the
suppliers has provided adequate cushion for the company's working-
capital-intensive operations.
ATPL reported a profit after tax (PAT) of INR10.5 million on net
sales of INR358.3 million for 2012-13, against a PAT of INR9.4
million on net sales of INR256.5 million for 2011-12. Its revenue
is estimated at INR570 million for 2013-14.
ATPL was incorporated in 1996 in Delhi. It provides IT solutions,
mainly in networking through network security solutions and data
security hardware. The company is promoted by Mr. Sandeep Arya, a
Delhi-based entrepreneur, and his family members.
ANGEL EXIM: CRISIL Assigns 'B+' Rating to INR5MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Angel Exim Pvt Ltd (AEPL; a part of the
Majolica group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B+/Stable
Letter of Credit 150 CRISIL A4
The ratings reflect the Majolica group's exposure to intense
competition and trading nature of operations, leading to low
profitability and weak financial risk profile marked by an
aggressive capital structure and below-average debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of the Majolica group's promoters in trading
in timber and ceramic tiles.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AEPL, STMPL Enterprises Pvt Ltd, and
Majolica Impex Pvt Ltd. This is because these entities, together
referred to as the Majolica group, have a common management and
are in the same lines of business.
Outlook: Stable
CRISIL believes that the Majolica group will benefit over the
medium term on the back of its promoters' extensive experience in
trading in timber and ceramic tiles. The outlook may be revised to
'Positive' if the group improves its profitability, substantially
leading to higher-than-expected cash accruals, while improving its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if the group's operating margin or revenue declines or
if its financial risk profile deteriorates more than expected due
to stretch in working capital or diversion of funds to group
companies.
Incorporated in 1997, AEPL is promoted by members of the
Mithiborwala family based in Ahmedabad (Gujarat). AEPL is a part
of the Majolica group. The group trades in ceramic and porcelain
tiles, and timbers.
For 2013-14 (refers to financial year, April 1 to March 31), the
Majolica group reported, on a provisional basis, a book profit of
INR14.9 million on net sales of INR2.44 billion; the group
reported a net profit after tax of INR13.5 million on net sales of
INR5.66 million for 2012-13.
ARTIZ CERAMIC: ICRA Revises Rating on INR6.63cr Loans to 'B+'
-------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR4.38
crore (earlier INR3.68 crore) term loan and INR2.25 crore cash
credit facility of Artiz Ceramic Private Limited from [ICRA]D to
[ICRA]B+. ICRA has also revised the short term rating from
[ICRA]D to [ICRA]A4 outstanding on the INR0.80 crore (earlier
INR0.50 Crore) short term non-fund based facility of ACPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 2.25 [ICRA]B+ revised
Term Loans 4.38 [ICRA]B+ revised
Bank Guarantee 0.80 [ICRA]A4 revised
The rating revision reflects the regularity in principal and
interest servicing as well as stability in operations of Artiz
Ceramic Private Limited. The ratings also favorably considers the
experience of the key promoters in the ceramic industry,
diversified product profile with presence in digital tile printing
segment, and location advantage enjoyed by ACPL giving it easy
access to raw material.
The ratings however continue to be constrained by ACPL's modest
size of operations which along with the high competitive intensity
is likely to exert pressure on margins. The rating also factor in
weak financial profile of the company reflected in low profit
margins, modest coverage indicators and stretched liquidity. ICRA
also notes the dependence of operations and cash flows of the
company on the performance of the real estate industry which is
the main consumer sector, and vulnerability of profitability to
increasing prices of gas and power.
Artiz Ceramic Private Limited was incorporated as a closely held
company in 2010 to manufacture ceramic wall tiles with its
production facility located at Morbi, Gujarat. The company is
currently engaged in manufacturing wall tiles of sizes 10'x15" and
10"x10" with an installed capacity of 19800 TPA (Tons Per Annum).
The company is promoted by Mr. Satish Chhatrola along with other
directors, having a long experience in ceramic tile manufacturing
business.
Recent Results
For the year ended 31st March 2014, the company reported an
operating income(as per provisional unaudited statement) of
INR19.09 crore and profit before tax of INR0.64 crore.
BERRY ALLOYS: CRISIL Suspends 'B-' Rating on INR385MM Loans
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Berry
Alloys Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 Suspended
Cash Credit 130 CRISIL B-/Stable Suspended
Foreign Letter of 170 CRISIL A4 Suspended
Credit
Proposed Long Term
Bank Loan Facility 19.5 CRISIL B-/Stable Suspended
Term Loan 235.5 CRISIL B-/Stable Suspended
The suspension of ratings is on account of non-cooperation by BAL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BAL is yet to
provide adequate information to enable CRISIL to assess BAL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
BAL was incorporated in 2006 in Bobbili (Andhra Pradesh), and is
promoted by Mr. Vijay Gupta, his uncle, Mr. Surendra Singhal, and
cousin, Mr. Ravi Singhal. The company manufactures silico
manganese and has installed two 9-megavolt-ampere (MVA) furnaces,
with a total capacity of 2880 tonnes per month.
BHANDARI DEEPAK: CRISIL Suspends 'D' Rating on INR75MM Loans
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Bhandari Deepak Industries Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 52.5 CRISIL D Suspended
Letter of Credit 3 CRISIL D Suspended
Long Term Loan 16 CRISIL D Suspended
Proposed Term Loan 3.5 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
BDIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BDIPL is yet to
provide adequate information to enable CRISIL to assess BDIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
BDIPL (formerly, SJM Paper Mills) was reconstituted as a private
limited company in 2001 by Mr. Deepak Bhandari and Mrs. Anita
Bhandari. The company manufactures kraft paper and corrugated
boxes, which are used in the packaging industry. BDIPL's
manufacturing unit is based in Baddi (Himachal Pradesh) and has
capacity of 9000 tonnes per annum (tpa) for kraft paper and 1800
tpa for corrugated boxes.
BTC INDUSTRIES: CRISIL Suspends 'D' Rating on INR300MM Loans
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
BTC Industries Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D Suspended
Cash Credit 290 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by BIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BIPL is yet to
provide adequate information to enable CRISIL to assess BIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 2003 by Mr. Yashoda Nandan Agarwal and his sons,
Mr. Navneet Agarwal and Mr. Tushar Agarwal, BIPL began commercial
production under the present management in February 2006. The
company manufactures thermo-mechanically treated (TMT) bars at its
facility in Khasra (Uttarakhand), and has capacity of 120,000
tonnes per annum. BIPL enjoys a 30-per cent income tax rebate from
2011-12 (refers to financial year, April 1 to March 31) to 2013-
14. The company is also exempt from central excise duty. BIPL
markets its products under the Mittal Sariya brand. Its clientele
largely comprises distributors/dealers/retailers in Uttarakhand,
UP, New Delhi, Punjab, and Haryana (accounted for around 70 per
cent of the company's sales in 2011-12). Rest of the sales is
directly to builders, such as Omaxe Ltd, Ansal Properties &
Infrastructure Ltd, and DLF Ltd (rated 'CRISIL A/Stable/CRISIL
A2+'). BIPL also manufactures ingots with capacity of 80 tonnes
per day (tpd). This capacity is expected to increase to 230 tpd by
proposed addition of induction furnace for incremental ingot
manufacturing capacity by September 2012. The enhanced ingot
manufacturing capacity is expected to take care of 100 per cent
raw material requirement for the TMT bar plant from October 2011.
CBC FASHIONS: ICRA Suspends 'B+' Rating on INR5cr Term Loan
-----------------------------------------------------------
ICRA has suspended long-term rating of [ICRA]B+ assigned to the
INR5.00 crore long-term term fund based facilities and the short-
term rating of [ICRA]A4 assigned to the INR21.00 crore short-term
fund based facilities of CBC Fashions (Asia) Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
COOCH BEHAR: CRISIL Suspends 'D' Rating on INR200MM Term Loan
-------------------------------------------------------------
C RISIL has suspended its ratings on the bank facilities of Cooch
Behar Mission Hospital Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 200 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by CBM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CBM is yet to
provide adequate information to enable CRISIL to assess CBM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
CBMH is setting up a 100-bed multi-specialty hospital and nursing
college in Cooch Behar (West Bengal). The hospital will be the
first multi-specialty hospital in that region. The hospital is
mainly promoted by Dr. Nirmal Pandit, who is an MBBS and a diploma
holder in neurosurgery and has over two decades of experience in
the healthcare industry. The estimated cost of the project is
INR341 million, of which about 60 per cent (Rs.200 million) is to
be funded through a term loan from State Bank of India and the
balance through promoter's contribution. The hospital is expected
to be operational by April 2012, however, the full construction is
expected to be done by November 2012.
DAAJ HOTELS: ICRA Upgrades Rating on INR79.5cr Loan to 'C+'
-----------------------------------------------------------
ICRA has revised the long term rating assigned to the INR79.5 cr
term loan facility of Daaj Hotels And Resorts Private Limited to
[ICRA]C+ from [ICRA]D assigned earlier.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 79.50 Upgraded to [ICRA]C+
from [ICRA]D
The revision in the rating takes into account the regularization
in servicing of the ICRA rated debt in the recent months following
the restructuring of its term loans under the Corporate Debt
Restructuring (CDR). The rating however continues to be
constrained by the slow ramp up in the operations of its 157 room
5-Star hotel at Banjara Hills in Hyderabad whose occupancy
continued to remain low even as it entered its second year of
operations. The hotel occupancy levels in the Hyderabad region are
expected to remain subdued over the medium term due to oversupply
of rooms and prolonged demand slowdown. Further, DHPL has large
debt repayments lined up for FY15 and beyond and their timely
servicing would require external funding support until the hotel's
occupancy picks up and the operations stabilize. Thus, timely
infusion of funds by the promoters will remain critical to ensure
regularity in servicing its debt obligations in the near term.
Daaj Hotels, promoted by Mr. B.S. Sahney, has developed a 157 room
five star deluxe hotel at Banjara Hills, Hyderabad at a cost of
INR158 crore. The hotel operates under the 'Radisson Blu' brand
and it commenced operations in June 2013. Apart from Daaj Hotels,
other companies belonging to the Sahney Group include REIL
Electricals India Limited, an OEM* supplier of starter motors for
passenger/commercial vehicles and mining/construction equipment.
DEV BHUMI: CRISIL Suspends 'D' Rating on INR107MM Loans
-------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Dev Bhumi Steels (DBS; part of the Dev Bhumi group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D Suspended
Letter of Credit 7 CRISIL D Suspended
Rupee Term Loan 50 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by DBS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, DBS is yet to
provide adequate information to enable CRISIL to assess DBS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
CRISIL has combined the business and financial risk profiles of
Nalagarh Steel Rolling Mill Pvt Ltd, DBS, Shree Kangra Steel Pvt
Ltd, and Dev Bhumi Ispat. This is because these entities,
collectively referred to as the Dev Bhumi group, are in similar
lines of business and have strong operational and financial
linkages with each other. All the entities have common promoters
and the same management team.
The Dev Bhumi group manufactures mild steel ingots, thermo-
mechanically-treated (TMT) bars, and structured steel products
such as angles, beams, channels, and flats. Its manufacturing
facility is in Nalagarh (Himachal Pradesh). The Dev Bhumi group is
a family-run business, promoted by Mr. Surendra Bansal. While
SKSPL and DBS manufacture mild-steel ingots, NSRMPL and DBI
manufacture TMT bars and structural products such as flats,
angles, and beams.
DIAMOND CONSTRUCTION: ICRA Assigns 'B+' Rating to INR13.5cr Loans
-----------------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to the INR13.5 crore fund
based and non fund based facilities of M/s Diamond Construction
Company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit 1.5 [ICRA]B+; Assigned
Non Fund Based 12.0 [ICRA]B+; Assigned
The assigned rating factors in the experience of the promoters of
DCC who have been in the road construction business for almost 20
years and have worked extensively with the local government
agencies, the growing scale of DCC and its comfortable financial
profile. DCC has low working capital intensity due to short cash
conversion cycle and is expected to remain at similar levels with
the recent enhancement of its non fund based limits. However, the
Company has ambitious plans to purchase equipment of almost INR20
crore in the next one year which will be funded by a mix of
equipment loans and promoter's unsecured loans. Although the
equipments purchased will enable them to bid for projects of
higher value for NHAI and could likely translate into higher
turnover and accruals in the following years, in the near term it
will result in an increase in interest costs, stretched
capitalization ratios and squeezing of liquidity from the system.
Other than this, the rating is also constrained due to high client
concentration and geographic risk since all the orders are being
executed in Kaithal or Karnal for PWD, Haryana. The rating also
factors in the business risk arising out of modest scale of
operations, partnership nature of the firm, and highly competitive
business with presence of multiple small players.
Going forward, the ability of the promoters to bring in unsecured
loans as and when required to fund their capex plans, winning new
contracts especially from NHAI and successfully managing their
working capital cycle required to support the growing scale of the
firm would be among the key rating sensitivities. Further, the
extent of debt-funded capital expenditure and its impact on DCC's
financial risk profile will remain a key rating monitorable.
M/s Diamond Construction Company was started in 2007 as a
partnership firm with three partners -- Mr. Harjit Singh, Mr.
Baljit Singh and Mr. Shailender Kumar. Mr. Harjit Singh and Mr.
Baljit Singh are real brothers and work together in another
proprietorship firm -- Harjit Singh contractor -- established in
1995. Mr. Shailender Kumar was an employee with them and a civil
engineer by profession who had been working for the last 15 years
and rose through the ranks to become a partner in DCC. In 2011, he
sold his stake to the two brothers. Currently, Mr. Harjit Singh
and Mr. Baljit Singh's share in DCC is 35% and 65% respectively.
DCC is in the business of constructing/repairing roads primarily
for PWD (B&R) Haryana. It caters to the Karnal and Kaithal
division of PWD and is listed as a class 1 contractor.
Financial Results
As per the audited accounts of the company, it has recorded an
operating income and PAT of INR18.9 crore and INR1.12 crore
respectively for FY2013 as against the operating income and PAT of
INR9.3 crore and INR0.57 crore respectively for FY2012.
DOLPHIN INT'L: CRISIL Suspends 'D' Rating on INR215MM Loans
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Dolphin
International (part of the Dolphin group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 198.4 CRISIL D Suspended
Term Loan 16.6 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by DI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, DI is yet to
provide adequate information to enable CRISIL to assess DI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
CRISIL has combined the business and financial risk profiles of DI
and Dolphin Knitters Pvt Ltd (DKPL), together referred to as the
Dolphin group. This is because DI and DKPL have common promoters,
management, and lines of business (manufacturing knitted
garments), and fungible cash flows.
DI (a partnership firm) manufactures knitted garments for the pre-
winter, winter, and summer seasons. The product range offered by
the firm includes cardigans, knitted coats, jackets, stole,
knitted kurtis, and t-shirts for summer. About 80 per cent of the
group's total sales come from the winter-wear segment, 15 per cent
from pre-winter-wear, and the rest from summer-wear products. The
group's unit is in Ludhiana (Punjab). The products are
manufactured under its own brands, Snow Time, Kushi, and Jolie;
products for the corporate customers are labeled under the
respective customers' brands. Around 15 per cent of the products
manufactured are sold to corporate clients. DKPL was incorporated
in 2009-10 (refers to financial year, April 1 to March 31) and had
set up a knitting facility in Ludhiana (Punjab) in 2011-12.
EXCLUSIVE STEEL: CRISIL Suspends 'D' Rating on INR216.4MM Loans
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Exclusive Steel and Casting Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D Suspended
Cash Credit 100 CRISIL D Suspended
Letter of Credit 51.4 CRISIL D Suspended
Term Loan 55 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by ESCP
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ESCP is yet to
provide adequate information to enable CRISIL to assess ESCP's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
ESCP was incorporated in 2008 and manufactures stainless steel
(SS) ingots, SS flats, SS cold rolled sheets, and SS turnings. The
company commenced operations in 2008 by setting up a manufacturing
plant with a capacity of around 700 tonnes per month (tpm). It is
promoted by Mr. Maneklal Jain and his son, Mr. Ratanlal M Jain,
and its daily operations are handled by Mr. Ratanlal Jain.
FLORIDA ELECTRICAL: ICRA Assigns 'B+' Rating to INR8cr Loans
------------------------------------------------------------
ICRA has assigned rating of [ICRA]B+ to the INR8.00 crore fund
based bank facilities (including proposed limits of INR2.50 crore)
of Florida Electrical Industries Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit-
Cash Credit 5.50 [ICRA]B+ assigned
Proposed Limit 2.50 [ICRA]B+ assigned
The rating action takes into account FEIL's weak financial profile
characterised by low profitability, high gearing and depressed
coverage indicators, low bargaining power against established
principals which has restricted its growth over the last few years
and its high working capital intensity of operation on account of
high level of inventory maintained. The rating also factors in
highly competitive nature of electrical business which leads to
pricing pressure for all the industry participants and the
continuous technological advancement in the electrical business
which renders players to risk of technological obsolescence. The
rating, however, derives comfort from the experience of FEIL's
promoters in the electrical business, its status as an Original
Equipment Manufacturer (OEM) of established players like Havells
India Limited and Osram India Limited and approved vendor of
Energy Efficiency Services Limited which gives visibility to
future revenues and the strong potential of the LED based products
in the lighting segment of the domestic market owing to its energy
saving benefits. Thus, the ability of the company to grow its
business by managing its working capital requirement and by pacing
up with the technological advancement would remain the key rating
sensitivities going forward.
Florida Electrical Industries Limited was incorporated in 1994 by
Mr. Anil Arora. The company is involved in the manufacturing of
electrical products like CFL (Compact Fluorescent Lamp), FTL
(Fluorescent Tubular Lamps), ballast, LED lights, drivers and
other having its unit at Bhiwadi, Haryana and Mayapuri, Delhi. The
company currently operates as an Original Equipment Manufacturer
(OEM) of established players like Havells India Limited and Osram
India Limited.
Recent Results
The company has reported a net profit of INR0.22 crore
(provisional) on an operating income of INR26.07 crore
(provisional) during FY 2014; as compared to a net profit of
INR0.27 crore on an operating income of INR26.70 crore during FY
2013.
GNA UDYOG: CRISIL Suspends 'D' Rating on INR600MM Loans
-------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
GNA Udyog Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 300 CRISIL D Suspended
Proposed Cash
Credit Limit 50 CRISIL D Suspended
Term Loan 250 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
Udyog with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Udyog is yet to
provide adequate information to enable CRISIL to assess Udyog's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Udyog, incorporated in 1990, is a part of the GNA group, which
also comprises GNA Axles Ltd (rated 'CRISIL BBB/Stable/CRISIL
A3+') and GNA Duraparts Ltd (rated 'CRISIL BB+/Stable/CRISIL
A4+'). Udyog manufactures propeller shafts, hydraulic lift
assemblies, and other automotive components. It is the smallest of
the three group companies, with revenues of INR1135 million in
2010-11 (refers to financial year, April 1 to March 31). Udyog
caters primarily to the domestic market. It is one of the largest
manufacturers of propeller shafts in India and meets the entire
requirement of some of its key customers; it is the single-source
supplier of five models of Maruti Suzuki India Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+'), namely, Swift diesel, Ritz, Dzire, and
SX4 petrol and diesel models. Udyog's product range includes
propeller shaft assemblies, steering column assemblies,
intermediate drive shafts, and off-highway products. The company
has its manufacturing facilities at Jalandhar (Punjab).
HIMATSINGKA RESORTS: CRISIL Suspends D Rating on INR64.5MM Loans
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Himatsingka Resorts Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 10.4 CRISIL D Suspended
Bank Loan Facility
Term Loan 54.1 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by HRPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, HRPL is yet to
provide adequate information to enable CRISIL to assess HRPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated on June 26, 2008, HRPL has set up a 42-room, eco-
friendly four-star hotel at Dekargoan in Tezpur (Assam). HRPL has
tied up with Concept Hospitality Pvt Ltd for its brand name, The
Fern Residency, and its assistance in the day-to-day operations of
the proposed hotel. HRPL's promoters, Mr. Rajesh Kr Himatsingka,
his son, Mr. Kanishka Himatsingka, and his daughter-in-law, Mrs.
Neha Himatsingka, are based in North-East India.
HUNSUR PLYWOOD: ICRA Reaffirms 'B+' Rating on INR4.50cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long term rating at [ICRA]B+ assigned to
INR4.50 crore fund based bank facilities of Hunsur Plywood Works
Private Limited. ICRA has also reaffirmed the short term rating at
[ICRA]A4 assigned to INR8.50 crore non-fund based facilities of
HPWL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund
based Limits 4.50 [ICRA]B+ reaffirmed
Short term non-
fund based Limits 8.50 [ICRA]A4 reaffirmed
The ratings reaffirmation continues to be constrained by the high
working capital intensive nature of business primarily driven by
high inventory holding period. Further, the profitability of the
company remained exposed to the fluctuation in the foreign
exchange rates as raw material imports are not order backed and
the persisting high competitive and fragmented nature of industry.
In addition, ban on export of timber logs by Myanmar government
has an impact on the company's ability to source the required
quantity of timber; however, the risk is mitigated to an extent by
the fact that the company has increased the sourcing of raw
materials from other countries. Nonetheless, the ratings continue
to draw comfort from the established track record of the promoters
in the timber business and existing relationship. The rating also
factors in the proximity to key suppliers which reduces freight
costs as well as mitigates the risk of unavailability of timber to
an extent.
HPWL is located at Hunsur, Karnataka in an area spread over 26
acres of land, with an installed capacity of 1.0 msft. The company
is promoted by Mr. Moiz S Vagh, and his family members and is
engaged in the manufacturing of Hardwood Plywood, Block Boards,
Flush Doors and Decorative Veneers. The company's products are
marketed under the brand "Hunsply".
The company reported an operating income of INR39.13 Cr and net
profit after tax of INR0.54 Cr for the financial year 2013-2014 as
against an operating income of INR36.29 Cr and net profit after
tax of INR0.36 Cr for the financial year 2012-13.
J. J. CONSTRUCTIONS: ICRA Reaffirms 'B' Rating on INR15cr Loan
--------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B rating assigned to the INR15 crore
long term loan facilities of J. J. Constructions.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund 15.00 [ICRA]B Reaffirmed
based limits-
Term Loan
The rating reaffirmation takes into consideration the long
standing experience of the promoters in the real estate
development having executed several commercial and residential
projects over the past two decades. The project also enjoys
location advantage due to presence in prime area of Pune city in
proximity to the well developed residential and commercial areas.
The rating however remains constrained by delays in the project
execution owing to revisions in project plans due to changes in
city development plans adjacent to the project site and purchase
of additional land parcels adjacent to the original site.
Currently the revised project plan is awaiting approval giving
rise to uncertainties regarding timelines of the project and
resultantly possibilities of cost overruns prevail. With
substantial degree of dependence upon the customer advances and
construction yet to start, the debt servicing risk is moderately
high and ICRA expects promoter's to support the debt repayment
obligations of the firm. Going forward, the firm's ability to
receive timely approvals and resultantly avoid any delays in the
project execution would remain the key rating sensitivities.
J. J. Constructions belongs to the Jalan group promoted by the
Jalan brothers: Mr. Dwarka Jalan, Mr. Vijay Jalan and Mr. Sanjay
Jalan in 1984. With around 20 years into the construction
business, the group has developed over 100 commercial &
residential projects admeasuring around five million sq.ft.,
primarily in Pune.
JALAN JODHAWAT: ICRA Cuts Rating on INR5cr Term Loan to 'D'
-----------------------------------------------------------
ICRA has downgraded the long term rating assigned to the INR5.00
crore fund based limits of Jalan Jodhawat Properties from [ICRA]B
to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund 5.00 [ICRA]D downgraded
based limits - from [ICRA]B
Term Loan
The rating revision reflects delays in debt servicing by the firm
on account of pressure on project sales while the cost has been
almost completely incurred. ICRA notes that slowdown in real
estate sector has been impacting sales of the project and the
effect is magnified due to luxury nature and large ticket size of
the units. The collection efficiency of the project also stands at
a modest level ~50%.
Jalan Jodhawat Properties belongs to the Jalan group promoted by
the Jalan brothers: Mr. Dwarka Jalan, Mr. Vijay Jalan and Mr.
Sanjay Jalan in 1984. With around 20 years into the construction
business, the group has developed over 100 commercial &
residential projects admeasuring around five million sq.ft.
primarily in Pune.
KAMALA COLD: CRISIL Reaffirms 'D' Rating on INR73.6MM Loans
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Kamala Cold Storage Pvt
Ltd continue to reflect the instances of delay by KCSPL in meeting
the interest obligations on its term loan; the delays have been
caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.6 CRISIL D (Reaffirmed)
Cash Credit 63.5 CRISIL D (Reaffirmed)
Working Capital
Demand Loan 8.5 CRISIL D (Reaffirmed)
KCSPL also has a weak financial risk profile, marked by a high
gearing and weak debt protection metrics, and is exposed to the
highly regulated and intensely competitive cold storage industry
in West Bengal. However, KCSPL benefits from its promoters'
extensive industry experience.
KCSPL was set up in 1996 by the Gorai family of Kolkata (West
Bengal). The company has a cold storage unit (with two chambers)
in Bankura (West Bengal).
LOK RAJ: ICRA Suspends 'B+' Rating on INR18cr Loans
---------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR18.00
crore fund based limits and [ICRA]A4 rating assigned to INR7.00
crore non fund based limits of Lok Raj Saini Infra-Tech Pvt Ltd.
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
---------- ----------- -------
Fund-Based Limit 18.00 [ICRA]B+ suspended
Non Fund based Limit 7.00 [ICRA]A4 suspended
Incorporated in May 2010, 'Lok Raj Saini Infra-Tech Private
Limited' (LRPL) is a Mandi (Himachal Pradesh) based construction
company engaged in civil construction, largely roads, for
government bodies in the region. LRPL is registered as a 'Class A'
contractor with Himachal Pradesh Public Works Department (HPPWD).
Besides road construction, the company also undertakes projects
such as construction of bus stands, installation of telecom
systems, cable work and earthing.
LRPL is closely held by Mr. Lok Raj Saini, who was earlier
undertaking construction operations under the partnership entity
Lok Raj Saini Constructions (LRSC). While the bank facilities have
been transferred from LRSC to LRPL in FY13, operations are
gradually being shifted to LRPL.
M.E. PROJECT: ICRA Suspends 'B+' Rating on INR15cr Loans
-----------------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B+ for the
INR10.0 crore sanctioned fund based limit and INR5.0 crore non-
fund based limit of M.E. Project Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
MARUTI COTTON: ICRA Reaffirms 'B' Rating on INR8.60cr Loans
-----------------------------------------------------------
ICRA has reaffirmed [ICRA]B rating to the INR8.60 crore fund based
facilities of Maruti Cotton Ginning & Pressing.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund
based-Cash Credit 8.00 [ICRA]B reaffirmed
Long Term Fund
Based-Term Loan 0.60 [ICRA]B reaffirmed
The reaffirmation of rating factors in MCGP's weak financial
profile characterized by leveraged capital structure leading to
weak debt protection indicators and thin margins on account of
limited value addition in the business operations The rating also
incorporates susceptibility of the cotton prices to seasonality
and regulatory risks which together with the highly competitive
industry environment further exerts pressure on margins.
The rating, however, positively factors in the long experience of
the promoters in cotton industry as well as the advantages arising
from the firm's proximity to raw material sources which ensures
regular availability of cotton and strong demand for cotton seed
oil.
Maruti Cotton Ginning & Pressing was established in 2006 as a
proprietorship concern owned and managed by Mr. Narayan Patel. The
firm is engaged in the business of ginning and pressing of raw
cotton as well as crushing of cottonseeds with processing capacity
of around 90 TPD of raw cotton. The firm is equipped with 18
ginning machines and 1 Pressing machine having capacity to produce
180 bales per day. The firm is also equipped with 3 expellers for
cottonseed crushing to produce cottonseed oil as well as
cottonseed oil cakes. The saleable products of the firm include
cotton bales, cotton seeds, cottonseed oil and cottonseed cakes
which are mainly sold to brokers and merchant exporters with
credit period of 15 days.
Recent Results
For the year ended March 31, 2014(as per unaudited provisional
financial statement), MCGP has reported an operating income of
INR55.59 crore and profit after tax of INR0.01 crore.
MAXHEAL LABORATORIES: ICRA Suspends 'D' Rating on INR17.81cr Loan
-----------------------------------------------------------------
ICRA has suspended the [ICRA]D rating assigned to the INR17.81
crore, bank lines of Maxheal Laboratories Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
MAXHEAL PHARMA: ICRA Suspends B/A4 Rating on INR17cr Bank Loan
---------------------------------------------------------------
ICRA has suspended the [ICRA]B/[ICRA]A4 rating assigned to the
INR17.00 crore, bank lines of Maxheal Pharmaceuticals (India)
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
NARCISSUS MEDICAL: CRISIL Assigns 'B+' Rating to INR60MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank
facilities of Narcissus Medical Centre Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 30 CRISIL B+/Stable
Cash Credit 29.2 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 0.8 CRISIL B+/Stable
The ratings reflect NMCPL's exposure to intense competition in the
jewellery industry and its working-capital-intensive operations.
These rating weaknesses are partially offset by the extensive
industry experience of the company's promoters.
Outlook: Stable
CRISIL believes that NMCPL will continue to benefit over the
medium term by the extensive industry experience of its promoters.
The outlook may be revised to 'Positive' if NMCPL improves its
financial risk profile and working capital management, while
achieving substantial growth in its sales and profitability.
Conversely, the outlook may be revised to 'Negative' if the
company's liquidity is impacted by significant delays in recovery
of receivables, or its financial risk profile deteriorates, driven
by substantial debt-funded capital expenditure.
NMCPL was incorporated in December 1993. The company is promoted
by Mr. Sumit Kumar Bishayi and his brother Mr. Sujit Kumar
Bishayi. It has been operating a medical diagnostic centre since
the past two decades, and in 2005 has also ventured into retailing
of consumer goods such as ready-made garments, bags, and
jewellery.
ORBIT AVIATION: CRISIL Suspends 'D' Rating on INR280MM Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Orbit
Aviation Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 280 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
Orbit with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Orbit is yet to
provide adequate information to enable CRISIL to assess Orbit's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Orbit was incorporated in 2007-08 (refers to financial year, April
1 to March 31) to operate chartered flights. It is a subsidiary of
Orbit Resorts Pvt Ltd (rated 'CRISIL B-/Negative'). On April 1,
2010, Orbit's promoters merged one of their partnership firms,
Orbit Transport, with Orbit. Orbit Transport operates a fleet of
buses in Punjab and provides public road transport services. Post-
merger, Orbit has two business divisions aviation and road
transport.
PG ASSOCIATES: CRISIL Reaffirms 'B' Rating on INR105MM Loans
------------------------------------------------------------
RISIL's rating on the bank loan facilities of PG Associates Pvt
Ltd (PGAPL) continues to reflect the deterioration in PGAPL's
business risk profile, reflected in the decline in its sales to an
estimated at INR164.69 million in 2013-14 (refers to financial
year, April 1 to March 31) from INR274.99 million in 2012-13; the
decline was on account of slow order flows. Moreover, there has
been a stretch in realisation of its receivables, with debtors
estimated at around 150 days as on March 31, 2014, an increase
from 115 days as on March 31, 2013. The company's inventory has
also remained large, estimated at 294 days as on March 31, 2014,
an increase from 179 days as on March 31, 2013. Due to the stretch
in its working capital cycle in 2013-14, PGAPL's liquidity has
remained weak, leading to high reliance on bank borrowings. Its
average bank limit utilisation is estimated at around 98 per cent
during the 12 months ended March 31, 2014.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Letter of Credit 95 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 55 CRISIL B/Stable (Reaffirmed)
CRISIL had downgraded its rating on the long-term bank facilities
of PG Associates Pvt Ltd to 'CRISIL B/ Stable' from 'CRISIL
B+/Stable', and has reaffirmed its rating on the company's short-
term facilities at 'CRISIL A4' as on July 16, 2014.
PGAPL's overall financial risk profile has also weakened, with
interest coverage ratio estimated at around 1.22 times for 2013-
14, a decline from 1.40 times in 2012-13, on account of increase
in working capital requirements. CRISIL believes that the
company's small scale of operations, along with its below-average
financial risk profile and working-capital-intensive operations,
will continue to constrain its business and financial risk
profiles over the medium term.
The ratings reflect PGAPL's small scale of operations in an
intensely competitive timber, ceiling tiles, and gypsum board
trading industry. The ratings also factor in the company's below-
average financial risk profile, marked by weak debt protection
metrics and an average total outside liabilities to tangible net
worth ratio, and its working-capital-intensive operations. These
rating weaknesses are partially offset by the extensive industry
experience of PGAPL's promoters.
Outlook: Stable
CRISIL believes that PGAPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company registers a
substantial increase in its revenue and profitability while
significantly improving its working capital management, leading to
better financial flexibility. Conversely, the outlook may be
revised to 'Negative' if PGAPL's financial risk profile,
particularly its liquidity, deteriorates, most likely because of
further decline in its revenue and profitability, or larger-than-
expected debt-funded capital expenditure, or an increase in its
working capital requirements.
PGAPL, incorporated in 1997, is managed by Mr. Narayan Patel and
his family. The company trades in timber and plywood, and also in
ceiling tiles and gypsum boards.
On a provisional basis, it reported a net profit of INR1.28
million on net sales of INR164.69 million for 2013-14; it had
reported a net profit of INR3.71 million on net sales of INR274.99
million for 2012-13.
PREET LAND: CRISIL Suspends 'D' Rating on INR300MM Cash Credit
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Preet
Land Promoters and Developers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 300 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by PLPD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PLPD is yet to
provide adequate information to enable CRISIL to assess PLPD's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 2005, PLPD is developing Preet City in Mohali
(Punjab). Preet City is PLPD's first real estate project. PLPD
commenced land acquisition for the project in 2006-07 (refers to
financial year, April 1 to March 31). The project cost is
estimated at INR5454 million, to be funded primarily by customer
advances. PLPD is promoted by Mr. Kanwal Jit Singh Walia and
family, Mr. Charan Singh Saini and Mr. Narendar Singh.
RAJIT PAINTS: CRISIL Suspends 'D' Rating on INR672MM Loans
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Rajit
Paints Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 450 CRISIL D Suspended
Letter of Credit 92.5 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 26.6 CRISIL D Suspended
Standby Line of Credit 20 CRISIL D Suspended
Term Loan 82.9 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by RPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RPL is yet to
provide adequate information to enable CRISIL to assess RPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
RPL was set up in 1985 by Mr. Rakesh Mehra and Mr. Rohit Nagrath.
The company manufactures industrial paints, including liquid
automotive paints, industrial powder coatings, general industry
paints, and other allied products.
SAINOR LIFE: CRISIL Suspends 'C' Rating on INR150MM Loans
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sainor Life Sciences Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 Suspended
Letter of Credit 25 CRISIL A4 Suspended
Term Loan 100 CRISIL C Suspended
Cash Credit 50 CRISIL C Suspended
The suspension of ratings is on account of non-cooperation by SLS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SLS is yet to
provide adequate information to enable CRISIL to assess SLS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Established in 2007, Sainor Life Sciences Pvt. Ltd. (SLS) is
engaged in manufacturing of bulk drug intermediates and has its
manufacturing unit at Vishakhapatnam (Andhra Pradesh). The company
commenced its commercial operations in 2010-11. SLS was promoted
by Mr. U. Tata Rao, Mr. S.P.Naidu, Mr. A.P.Rameshwar Rao and Mr.
T. Venkateshwar Rao and is a part of the Hyderabad based Sainor
Group. The other group entities Sainor Pharma Pvt Limited (SPPL)
and Sainor Laboratories Pvt. Ltd (SLPL) are engaged in the
production of bulk drugs and intermediates. As on March 31, 2011
SLPL and SPPL owned 31 per cent and 18 per cent of SLS's shares
respectively. SLS was set up primarily to manufacture azole based
drug intermediates used as raw material by SPPL.
Incorporated in 2003, SPPL produces drug-loaded pellets and
specializes in the production of Omeprazole and Lansoprazole
pellets which has end user application in anti-ulcer and anti-
peptic therapeutic segment. The company's manufacturing unit
located at Jeedimetla near Hyderabad has an installed production
capacity of 80 tonnes /month. Operations of SPPL are World Health
Organisation Good Manufacturing Practices (WHO cGMP) and ISO
9001:2008 certified.
SANKALP ENGINEERING: ICRA Assigns 'D' Rating to INR30cr Loan
------------------------------------------------------------
ICRA has revised the long-term rating to the INR45.00 crore
(reduced from INR80.00 crore) fund-based bank facilities and the
INR9.09 crore (reduced from INR14.24 crore) term loan facilities
of Sankalp Engineering & Services Private Limited (Erstwhile
Sankalp Forgings Private Limited) to [ICRA]D from [ICRA]BB. ICRA
has also assigned long term rating of [ICRA]D to INR30.0 crore
working capital term loan facility of SESPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 45.00 Revised to [ICRA]D
Based Limit from [ICRA]BB (stable)
Term Loan 9.09 Revised to [ICRA]D
from [ICRA]BB (stable)
Working Capital 30.00 [ICRA]D assigned
Term Loan
The rating revision takes into account the delays in debt
repayment during the last six months as a result of a tight
liquidity profile; significant erosion in net worth in 2013-14 due
to a net loss of INR32.21 crore following a sharp decline in
revenues. ICRA has also taken note of the adverse capital
structure and depressed coverage indicators owing to loss making
operations in 2013-14; high working capital intensity on account
of stretched receivables and sharp decline in operation income and
exposure to the cyclicality associated with the steel industry
which is likely to make cash flows volatile. Nevertheless, ICRA
has also factored in the long experience of the promoters in the
steel forging industry and established relationship of the
promoter with the customers while revising the rating.
Incorporated in 1996, SESPL manufactures couplings under the
tubular division and forged components under the non-tubular
division. The products of SESPL find their applications in diverse
industries such as oil and gas, automobile and general
engineering. SESPL is a subsidiary of Innoventive Industries
Limited (IIL), which acquired 51% of SESPL's equity in the year
2008.
Recent Results
In 2013-14, SESPL reported a net loss of INR32.21 crore on an
operating income of INR41.79 crore as compared to a net profit of
INR8.09 crore on an operating income of INR129.06 crore in 2012-
13.
SHANTI DEVELOPERS: ICRA Assigns 'B-' Rating to INR7.40cr Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B-' to the INR7.40
crore long-term fund based bank facility of Shanti Developers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund 7.40 [ICRA]B- Assigned
Based Limits (TL)
The rating is constrained by the significant market risk as the
firm has received bookings for only 13% of the saleable area under
its ongoing project, Om Divya; coupled with a high execution risk
for the project as nearly 50% of project costs remain to be
incurred as on March 31, 2014. The rating also factors in the high
funding risk for the project as nearly 40% of the project cost is
proposed to be funded by way of advances from customers, which
remain contingent on timely sales and collection of advances. The
repayment risk remains high with the project being under
construction, and repayment of debt availed for the project
commencing shortly from September 2014. Nevertheless, the rating
draws comfort from the attractive location of the project at
Kandivali, close to the railway station, which is likely to
attract both commercial as well residential buyers.
Incorporated in 2001, Shanti Developers is a partnership firm
promoted by Mr. Hitesh Makhecha. It is involved in real estate
development in Mumbai, Maharashtra. The firm has developed nearly
1.11 lakh sq. ft. of residential real estate space in Mumbai. The
promoters of the firm have also been involved in organizing fairs
and small amusement arcades in the tier-II cities of Maharashtra,
Gujarat and Goa for the past thirty years through their group
companies. The firm is currently developing two re-development
projects -- Sai Krupa and Om Divya -- both at Kandivali (West),
Mumbai, with a total area of 0.85 lakh sq. ft. under development.
SHREE HANS: ICRA Reaffirms 'B+' Rating on INR4cr Loans
------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ and the short
term rating of [ICRA]A4 for INR66.00 crore (Enhanced from INR30.00
crore) fund based limits and INR4.00 crore unallocated bank
facilities of Shree Hans Rice and General Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 66.00 [ICRA]B+/[ICRA]A4 reaffirmed
Unallocated Bank 4.00 [ICRA]B+ reaffirmed
Facilities
The ratings of SHRGM continue to take into consideration its low
profitability metrics, high gearing (TD/TNW of 12.84 times as on
March 31, 2014) and modest debt protection metrics. The ratings
also remain constrained by the firm's high working capital
intensity and the competitive nature of industry which exerts
pressure on operating margins. However, the ratings favourably
factor in SHRGM's experienced management and its concentration on
export of basmati rice. Further, ICRA has taken note of the firm's
significant growth in operating income in FY 2013-14 driven by
increase in both realizations and sales volumes. ICRA also
continues to take into consideration the favourable demand
prospects of the rice industry with India being the second largest
producer and consumer of rice in the world.
Shree Hans Rice and General Mills is a partnership firm primarily
engaged in milling of basmati rice, with its milling unit based
out of Taraori, Karnal in close proximity to the local grain
market. Exports of basmati rice formed approx. 73% of SHRGM's
sales in FY 2013-14. The firm was incorporated in 1980. The firm
has a milling and sorting capacity of 12 tons per hour.
In FY 2013-14, the firm reported a net profit of INR2.06 crore on
operating income of INR238.76 crore, as against operating income
of INR125.24 crore and a net profit after tax of INR0.95 crore in
FY 2012-13.
SHREE KRISHNA: CRISIL Suspends 'D' Rating on INR110MM Loans
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Shree Krishna Educational and Charitable Society.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 6 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 2.5 CRISIL D Suspended
Term Loan 101.5 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
SKECS with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SKECS is yet to
provide adequate information to enable CRISIL to assess SKECS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Established in 2008, SKECS operates two institutes ' Aryabhatta
Engineering and Management Institute and Aryabhatta College ' that
offer courses in various disciplines, such as engineering,
management, along with other graduation courses and are located at
Punjab. Both the institutes started operating from academic year
2009-10 and are in the process of ramping up their operations.
Over the medium term, the primary revenue earner of the society is
expected to be its engineering and management institute.
SIGNET PRODUCTS: CRISIL Puts 'B' Rating on Notice of Withdrawal
---------------------------------------------------------------
CRISIL has placed its ratings on the bank facilities of Signet
Products Pvt Ltd (part of the Signet group) on 'Notice of
Withdrawal' for a period of 180 days, at the company's request.
The rating will be withdrawn at the end of the notice period, in
line with CRISIL's policy on withdrawal of its bank loan ratings.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Notice of Withdrawal)
Cash Credit 70 CRISIL B/Stable (Notice of
Withdrawal)
Letter of Credit 20 CRISIL A4 (Notice of Withdrawal)
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SPPL and Nipko Engineering Services Pvt
Ltd. This is because these companies, together referred to as the
Signet group, share the same management team, are in a similar
line of business, and have fungible cash flows.
SPPL was set up in 1998 in Pune (Maharashtra) by Mr. Narendra
Korde and his wife. It provides end-to-end power solutions for
electrical substations, and supplies and installs metering
systems, current transformers, energy meters, and custom-designed
enclosures for commercial establishments. In 2002, the promoters
established NESPL, which is in a similar line of business. The
promoters have over two decades of experience in the electrical
installation industry.
SREE RAYALSEEMA: CRISIL Suspends 'D' Rating on INR220MM Loans
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sree Rayalseema Green Energy Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL D Suspended
Bill Discounting 100 CRISIL D Suspended
Cash Credit 40 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
SRGEL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SRGEL is yet to
provide adequate information to enable CRISIL to assess SRGEL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Promoted by Mr. K.Madhusudan and established in the year 1998,
SRGEL is engaged in the business of manufacturing of distribution
transformers ranging from 5KVA to 8 MVA. It also has biomass power
plant of 5.5 MW. The company has its production facility in Gooty,
Andhra Pradesh. As on April 15, 2012, company had an unexecuted
order book of around INR90 million for distribution transformers.
SRI DHARMA: CRISIL Reaffirms 'B' Rating on INR63.8MM Loans
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Sri Dharma Spinners Pvt
Ltd continue to reflect Sri Dharma's small scale of operations in
the fragmented cotton spinning industry, regional concentration in
revenue, and weak operating efficiencies. The ratings also factor
in the susceptibility of the company's margins to volatility in
input prices, and below-average financial risk profile marked by
small net worth, moderate gearing, and modest debt protection
measures. These rating weaknesses are partially offset by the
extensive industry experience of Sri Dharma's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3 CRISIL A4 (reaffirmed)
Cash Credit 27.5 CRISIL B/Stable (reaffirmed)
Proposed Long Term
Bank Loan Facility 16.6 CRISIL B/Stable (reaffirmed)
Term Loan 19.7 CRISIL B/Stable (reaffirmed)
CRISIL had, on July 25, 2014, upgraded its ratings on the bank
facilities of Sri Dharma to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL D/CRISIL D'. The rating upgrade reflects Sri Dharma's
timely debt servicing, backed by improvement in its cash accruals.
The company is expected to generate cash accruals of around INR12
million to INR14 million over the medium term to meet its debt
repayment obligations of INR7.8 million maturing in 2014-15
(refers to financial year, April 1 to March 31). Additionally, the
company benefits from its promoters' support in the form of
unsecured loans. The upgrade also reflects CRISIL's belief that
Sri Dharma will continue to grow at a steady rate while it
maintains its profitability, leading to steady cash accruals.
Outlook: Stable
CRISIL believes Sri Dharma will continue to benefit from its
promoter's extensive industry experience. The outlook may be
revised to 'Positive' in case Sri Dharma reports higher revenue
and profitability leading to increase in cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
company's business performance weakens, constraining its financial
risk profile, particularly liquidity.
Sri Dharma was incorporated in June 1999. The company's spinning
unit, in Rajapalyam (Tamil Nadu), started operations in July 2001.
It manufactures cone yarn and hank yarn.
SUBHASH STONE: CRISIL Suspends 'D' Rating on INR68MM Loans
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Subhash
Stone Industries Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL D Suspended
Proposed Cash
Credit Limit 11.1 CRISIL D Suspended
Term Loan 21.9 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
SSIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSIPL is yet to
provide adequate information to enable CRISIL to assess SSIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Established in 1995 by Mr. Subhash Chand Gupta and his family
members, SSIPL processes various sizes of boulders and crushed
sand.
THANGA PRATAPH: ICRA Raises Rating on INR11.92cr Loans to 'C+'
--------------------------------------------------------------
ICRA has upgraded the long-term rating outstanding on the INR2.44
crore (revised from INR7.25 crore) term loan facilities, the
INR5.00 crore (revised from INR4.00 crore) fund based facilities,
INR0.67 crore non-fund based facilities and INR3.81 crore (revised
from nil) proposed facilities of Thanga Prataph Spinning Mills
Private Limited to [ICRA]C+ from [ICRA]D. ICRA has also upgraded
short-term rating outstanding on the INR1.00 crore non-fund based
facilities of the Company to [ICRA]A4 from [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Term 2.44 [ICRA]C+/upgraded
loans from [ICRA]D
Long Term: Fund 5.00 [ICRA]C+/upgraded
based facilities from [ICRA]D
Long Term: Non- 0.67 [ICRA]C+/upgraded
fund based from [ICRA]D
facilities
Long Term: Proposed 3.81 [ICRA]C+/upgraded
Facilities from [ICRA]D
Short Term: Non- 1.00 [ICRA]A4/upgraded
fund based facilities from [ICRA]D
The rating action takes into account the restructuring of the
Company's term loans in March 2013 which has eased the principal
repayment burden till March 2015. The ratings also take into
account the experience of the promoters of over three decades in
the textile industry. Nevertheless, the ratings remain constrained
by the Company's modest financial risk profile characterized by
net losses (in 2011-12 and 2012-13), weak debt metrics and
relatively high working capital intensity. The ratings also factor
in the Company's small scale of operations, which restricts its
scale economies and bargaining power, and the intense competition
prevalent in the spinning industry which restricts its pricing
flexibility. Going forward, the Company has repayment obligations
of INR0.7 to INR0.9 crore over three fiscals starting from 2015-
16. With no significant capital expenditure plans in the medium
term, ability of the Company to improve its revenues through
growth in volumes, and profitability amidst volatile cotton and
yarn prices, and thereby improve the cash flows will be critical
to servicing the debt obligations in a timely manner.
Thanga Prataph Spinning Mills Private Limited was incorporated in
1993 and started its commercial production in 1995 with 3,000
spindles which was expanded to 14,928 spindles in 2008. The
Company manufactures cotton yarn in the counts ranging from 10s to
62s, with medium counts forming a major proportion. The Company
sells its products primarily through brokers in the markets of
Ichalkaranji, Biwandi, New Delhi and Coimbatore. TPSM has its
manufacturing facility Rajapalayam, Tamil Nadu.
The Company reported net loss of INR0.5 crore on an operating
income of INR9.9 crore during 2012-13 as against net loss of
INR0.5 crore on an operating income of INR10.2 crore during 2011-
12.
TIGER INFRAPROJECTS: ICRA Withdraws B+ Rating on INR3.75cr Loan
---------------------------------------------------------------
ICRA has withdrawn the [ICRA]B+ rating assigned to the INR3.75
crore fund based facilities and [ICRA]A4 rating assigned to the
INR3.0 crore non fund based facilities of Tiger Infraprojects
Private Limited, as the company is no longer availing the rated
bank facilities. There is no amount outstanding against the rated
facilities.
VENKATESH FOUNDATION: CRISIL Suspends D Rating on INR150MM Loans
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Venkatesh Foundation Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 78.70 CRISIL D Suspended
Term Loan 71.30 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by VFPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VFPL is yet to
provide adequate information to enable CRISIL to assess VFPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
VFPL's name was changed to the current one from Arun Plastic Pvt
Ltd (APPL) in 2004-05 (refers to financial year, April 1 to
March 31). The company is constructing a commercial mall in
Kolkata (West Bengal [WB]). The eight-storey mall, known as Lake
Mall in Lake Market, Kolkata, with a total area of 225,000 square
feet, is expected to be inaugurated in the next three months.
Members of the Sadani family of Kolkata established APPL in
February 1985 and participated in a tender to acquire land on
lease from Kolkata Municipal Corporation. APPL also had a plant in
Orissa for manufacturing high density polyethylene bags for cement
units in Orissa. However, the company closed down and sold its
Orissa plant in 1995.
In 2004-05, members of the Srikant Mohta family and Mr. Piyush
Bhagat (promoter of Space Group and one of the leading residential
and commercial developers in WB, Chennai [Tamil Nadu], and Orissa)
also joined in as promoters of the company, with its name being
changed to the current one. The Sadani and Mohta families have
been in textile and film production businesses for more than a
decade.
VSN HATCHERIES: ICRA Suspends 'D' Rating on INR13cr Loan
--------------------------------------------------------
ICRA has suspended '[ICRA]D' rating assigned to the INR13.00
crore, long term loans & working capital facilities of VSN
Hatcheries Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.
VSN Hatcheries Private Limited was incorporated as a broiler
franchise of Venkateswara Hatcheries in the year 1987 by Dr. V
Sundar Naidu along with his family members. VSN is engaged in the
rearing of broiler parents and sale of Day old chick (DOCs). The
operations of the company are primarily concentrated in the state
of Andhra Pradesh.
WINNER FOUNDATIONS: CRISIL Suspends 'B+' Rating on INR100MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Winner
Foundations Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 100 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by WFPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, WFPL is yet to
provide adequate information to enable CRISIL to assess WFPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 2009 and promoted by Mr. A P Selvarajan and
family, WFPL is a Chennai-based real estate developer. The company
develops residential projects in and around Chennai. Mr.
Selvarajan, through the partnership concern Winner Upscale, has
been in the real estate industry for the last six years. However,
in 2009, after the incorporation of WFPL, all new projects were
undertaken under WFPL.
===============
M A L A Y S I A
===============
MALAYSIA AIRLINES: To Be Delisted in $429 Million Buyout
--------------------------------------------------------
Chong Pooi Koon and Elffie Chew at Bloomberg News report that
Malaysian Airline System Bhd. will be delisted after sovereign
wealth fund Khazanah Nasional Bhd. offered to buy out minority
shareholders in a restructuring plan for the national carrier that
suffered two disasters this year.
Khazanah will pay 27 sen a share for a total of MYR1.38 billion
($429 million) to buy the remaining 30.6 percent it doesn't own,
it said in a statement obtained by Bloomberg. The airline will
need "substantial funding requirements" for the next few years to
sustain operations, it added.
Bloomberg says the carrier is struggling to stem losses and repair
its image after the downing of Flight 17 in Ukraine last month
compounded woes from the disappearance of a jet in March. Malaysia
Airlines has grappled with increased competition and higher costs
even before Flight 370 vanished, as low-cost rivals flooded the
region with planes and drove down fares, the report notes.
"By privatizing it first, it makes the restructuring easier,"
Bloomberg quotes Jason Chong, who helps manage close to
AUD2 billion as chief investment officer at Manulife Asset
Management Services Bhd. in Kuala Lumpur, as saying. "If you leave
it as a public-listed company, there's a lot more regulatory
requirements that you have to adhere to."
The carrier's board will discuss the proposal, and business
operations remain unchanged, it said in an August 8 statement.
Bloomberg notes that the company missed its target to be
profitable last year as rising prices for items including fuel,
maintenance and financing wiped out revenue gains. In May, the
Journal recalls, it pointed to an unfavorable foreign exchange
rate environment as an additional challenge this year.
"The proposed restructuring will critically require all parties to
work closely together to undertake what will be a complete
overhaul of the national carrier on all relevant aspects,"
Khazanah, as cited by Bloomberg, said. "Nothing less will be
required in order to revive our national airline to be profitable
as a commercial entity."
According to The Wall Street Journal, Khazanah said it is in the
final stages of crafting the restructuring plan, with further
details to be announced by the end of August.
The Journal, citing a person with knowledge of the plans, says the
overhaul effort may include layoffs and restructuring its board of
directors. The proposals being considered don't rule out
introducing a strategic partner, the person, as cited by the
Journal, said. "The idea to delist will give us the latitude to
look at all these things."
The Journal adds that analysts have said the airline needs to
significantly cut its 20,000-strong workforce and stop flying
unprofitable routes.
In 2013, the Journal notes, each Malaysia Airlines employee
generated about $243,000 in revenue. That compares with $514,000
per employee at rival premium carrier Singapore Airlines for the
year ended March 31, and $410,000 each at Hong Kong-based Cathay
Pacific Airways.
Any turnaround plan would need backing from the airline's
influential employee unions, which had earlier scuttled a share-
swap deal with budget carrier AirAsia Bhd. amid concerns over job
cuts, the Journal notes.
"We have no objection to taking the airline private, but we want
to see a good business plan before we support it," said Mohd
Jabbarullah Abd Kadir, executive secretary at Malaysian Airline
System Employees Union, the airline's biggest union, representing
half of its employees, the Journal relays.
He said the union is reiterating its demand to have the airline's
management team, including Chief Executive Ahmad Jauhari Yahya,
replaced, adds the Journal. "We want people who understand the
industry and have a background in aviation" but Mr. Ahmad Jauhari
"must go regardless," he said.
Headquartered in Selangor, Malaysia, state-owned Malaysia Airlines
-- http://www.malaysiaairlines.com/-- engages in the business of
air transportation and the provision of related services.
Last year, Malaysia Airlines reported a net loss of MYR1.17
billion ($359 million), its third consecutive year of
net losses, according to The Wall Street Journal. In the first
three months this year, its net loss widened to MYR443 million
from MYR279 million a year earlier, the Journal disclosed.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***