/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/141218.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, December 18, 2014, Vol. 17, No. 250 Headlines A U S T R A L I A ALCYONE RESOURCES: Administrators Seek Buyers for Assets AUSTRALIA STONE: First Creditors' Meeting Set For December 24 CHAMELEON RESOURCES: Expression of Interest Sought CORRECT LINE: Business Up For Sale C H I N A GREAT CHINA MANIA: Needs Additional Cash in Next 12 Months I N D I A A TO Z BUILDERS: CRISIL Suspends B+ Rating on INR170MM Term Loan ABHINANDAN MOTORS: CRISIL Suspends B+ Rating on INR90MM Cash Loan AGRAS RESIDENCY: CRISIL Suspends D Rating on INR160MM LT Loan ALFANZAW KNITS: CRISIL Suspends B- Rating on INR32.5MM Cash Loan ALGYPUG ENCLOSURES: CRISIL Suspends B- Rating on INR38.4MM Loan ALLIED ICD: CRISIL Suspends D Rating on INR62.7MM Term Loan AMIYA STEEL: CRISIL Suspends D Rating on INR127MM Cash Credit AMRAPALI ZODIAC: ICRA Withdraws B+ Rating on INR60cr FB Loan ANANDA AQUA: CRISIL Suspends B+ Rating on INR40MM Overdraft Loan ANKIT ISPAT: CRISIL Suspends B Rating on INR130MM Cash Credit APARIMITA POWER: CRISIL Suspends B Rating on INR180MM Bank Loan AROWANA EXPORTS: CRISIL Suspends B Rating on INR95MM Cash Credit AURO MIRA: CRISIL Suspends D Rating on INR125.1MM Long Term Loan B.K. CONSTRUCTION: CRISIL Suspends B Rating on INR30MM Cash Loan B.R. GUAR: ICRA Reaffirms B+ Rating on INR5.5cr Cash Credit BALAJI GINNING: CRISIL Suspends B+ Rating on INR60MM Cash Loan BELLEZA CERAMIC: CRISIL Suspends B+ Rating on INR30MM Cash Loan BHAI SAHIB: CRISIL Suspends B+ Rating on INR58.5MM Cash Credit BHARTU RAM: ICRA Assigns B Rating to INR10cr Cash Credit BIO NEEDS: CRISIL Suspends D Rating on INR173MM Long Term Loan CHHABRA ISPAT: CRISIL Suspends B+ Rating on INR140MM Cash Credit COLOSSUS TRADE: CRISIL Suspends B+ Rating on INR90MM Cash Credit CORONATION ARTS: CRISIL Suspends B+ Rating on INR20MM LT Loan COTS KNITS: CRISIL Suspends D Rating on INR43MM Cash Credit CTC MALL: CRISIL Suspends B+ Rating on INR80MM Cash Credit DEEPAK CONSTRUCTIONS: CRISIL Suspends B Rating on INR20MM Loan DHARMRAJ ALUMINIUM: CRISIL Suspends B+ Rating on INR130MM Loan DWARIKA BALAJI: CRISIL Suspends B Rating on INR270MM Bank Loan ENTRUST GRANITES: CRISIL Suspends B Rating on INR67.5MM Bank Loan GANESH MEDIA: CRISIL Suspends B- Rating on INR150MM Cash Credit GAYATHRI SUSTAINABLE: ICRA Reaffirms C Rating on INR22.87cr Loan GORA MAL: ICRA Withdraws B+ Rating on INR13.35cr Bank Loan GREATECH TELECOM: CRISIL Suspends D Rating on INR60MM LOC HERITAGE EDUCATIONAL: CRISIL Suspends D Rating on INR50MM Loan HIMACHAL FLOUR: CRISIL Suspends B Rating on INR70MM Cash Credit J. N. TRADERS: CRISIL Reaffirms B Rating on INR65MM Cash Credit KNOWLEDGE EDUCATION: ICRA Suspends D Rating on INR6.5cr Term Loan MEENAKSHI INDUSTRIES: CRISIL Reaffirms B Rating on INR30MM Loan MURANO TILES: ICRA Reaffirms B Rating on INR5.40cr Term Loan PARMESHWARI SILK: ICRA Reaffirms B+ Rating on INR21cr LT Loan PRASHANTH EDUCATIONAL: ICRA Reaffirms B+ Rating on INR6.48cr Loan RAMKUMAR TEXTILE: ICRA Reaffirms B+ Rating on INR8.75cr EPC Loan RAMKY INFRASTRUCTURE: Asked to go for Debt Restructuring SHAKTIMAN BIO: ICRA Assigns B Rating to INR4.50cr Cash Credit SMITH STRUCTURES: CRISIL Assigns B+ Rating to INR90MM Cash Loan SPICEJET LTD: India May Ask Lenders to Extend Up to INR600cr Loan SPICEJET LTD: Grounds Planes as India Oil Companies Refuse Fuel STATUS CLOTHING: ICRA Reaffirms B+ Rating on INR9cr Cash Credit VICO FORGE: CRISIL Suspends B- Rating on INR65MM Cash Credit I N D O N E S I A MEDCO ENERGI: S&P Affirms Then Withdraws 'B' CCR Rating N E W Z E A L A N D SOUTH CANTERBURY: FMA Closes Probe Into Possible Civil Claims SOUTH CANTERBURY: Sharebroker Mulls Civil Action Against SCF T A I W A N HCP GLOBAL: Moody's Withdraws B2 Corporate Family Rating - - - - - ================= A U S T R A L I A ================= ALCYONE RESOURCES: Administrators Seek Buyers for Assets -------------------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that the administrators of Alcyone Resources Limited and Texas Silver Mines Pty Ltd are seeking for urgent expressions of interest for the sale of the businesses and assets of the companies. Both companies entered administration on November 17, 2014 with Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Pitchers Partners being appointed as administrators, the report says. The report says Texas Silver Mines owns the Twin Hills Silver Mine which is on a maintenance and care regime at the present. Assets included in the sale are Twin Hills Resource, a capacity processing plant as well as other equipment and plant. According to Dissolve.com.au, the final buyer of the assets will also be able to own inventory that includes pads, leech ponds and stockpiles along with mining leases. An exploration tenements that cover 191 sq km including the North Western Corridor and Mt. Gunyan are also part of the sale, the report adds. Alcyone Resources Limited engages in mining operations, mineral exploration and evaluation AUSTRALIA STONE: First Creditors' Meeting Set For December 24 ------------------------------------------------------------- Richard J Cauchi and Daniel Quinn of SV Partners were appointed as administrators of Australia Stone Pty Ltd on Dec. 12, 2014. A first meeting of the creditors of the Company will be held at the offices of SV Partners, Level 17, 200 Queen Street, in Melbourne, Victoria, on Dec. 24, 2014, at 9:30 A.M. CHAMELEON RESOURCES: Expression of Interest Sought -------------------------------------------------- Sean Smith at The West Australian reports that administrators are trying to save 30 jobs by selling or restructuring a regional transport and logistics business which failed last week, the latest in a number of prominent collapses in the sector. Family-owned Chameleon Resources Pty Ltd called in insolvency firm McGrathNicol after succumbing to a cash crisis in part driven by a sharp decline in work in WA's North West, the report relates. Founded by director Peter Newbold 16 years ago, the business employs 30 people in Karratha, Broome and Perth, according to the report. The West Australian relates that McGrathNicol's lead administrator on the appointment, Rob Kirman said all staff had been retained and the business continued to operate with the support of creditors and customers. "We're seeking urgent expressions of interest from parties interested in the business as a going concern, or alternatively in some form of joint venture or equity partnership with the (Newbold) family," the report quotes Mr. Kirman as saying. The family was "committed (to the business) and we're working with them around some form of restructuring or deed of company arrangement, but it's early days from that perspective". Mr Kirman said Chameleon had a "profitable and viable" track record dating back to its formation, but had been weakened by a significant drop in revenue in the past two years, the report adds. CORRECT LINE: Business Up For Sale ---------------------------------- Cliff Sanderson at Dissolve.com.au reports that Correct Line Contracting is up for sale. Its receivers KordaMentha are seeking expressions of interest for the sale of the business which operates from Bunbury leased premises, the report says. Correct Line Contracting specialises in sewerage and wager reticulation as well as pumping stations, concrete construction, stormwater drainage, subdivision works as well as roads, earthworks and dams. It has around 44 employees. It owns plant and equipment which include forklifts and skid steers, excavators, heavy equipment, rollers and loaders, 24 light vehicles, service vehicles and transport fleet and trailers, tools and workshop equipment. ========= C H I N A ========= GREAT CHINA MANIA: Needs Additional Cash in Next 12 Months ---------------------------------------------------------- Great China Mania Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $5,954 on $571,270 of revenues for the three months ended Sept. 30, 2014, compared with a net loss of $579,743 on $470,279 of revenues for the same period last year. The Company's balance sheet at Sept. 30, 2014, showed $1.43 million in total assets, $1.16 million in total liabilities and total stockholders' equity of $265,203. As of Sept. 30, 2014 the Company has accumulated deficits of $9.48 million a positive working capital of $11,124, and also recorded a net loss from the continuing operations of $90,322 for the nine months then ended. As of Sept. 30, 2014, the Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. A copy of the Form 10-Q is available at: http://is.gd/9CUsa9 Hong Kong-based Great China Mania Holdings, Inc., operates three 100% owned subsidiaries: 1) Great China Media Limited GCM, which specialized in provision of electronic content; 2) GME Holdings Limited, which specialized in artist management services; and 3) Great China Games Limited, which specialized in retail sales of video games and accessories. ========= I N D I A ========= A TO Z BUILDERS: CRISIL Suspends B+ Rating on INR170MM Term Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of A to Z Builders & Developers (AZBD). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 170 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by AZBD with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AZBD is yet to provide adequate information to enable CRISIL to assess AZBD'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'. AZBD was established as a partnership firm in April 2005 by Mr. Pankaj Rana and Mr. Parminder Tewatia. The firm, based in Meerut (Uttar Pradesh), undertakes real estate development projects. It is currently executing a residential project named Green Heights in Meerut. ABHINANDAN MOTORS: CRISIL Suspends B+ Rating on INR90MM Cash Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Abhinandan Motors Pvt Ltd (AMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable Channel Financing 50 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by AMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AMPL is yet to provide adequate information to enable CRISIL to assess AMPL'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'. AMPL was incorporated in 2005, took up dealership of Bajaj Auto Ltd's (BAL's; rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+') three wheeler vehicles (goods carriers and passenger carriers), and started operations in November 2005. AMPL is promoted by Mr.Rohit Kumar Kothari and Mrs.Sapna Kothari. In October 2010, the company also added the two-wheeler range of BAL to its product portfolio. AMPL has three showrooms, three workshops in Karimnagar, Tolichowki, and Saifabad areas (all in Andhra Pradesh [AP]), and mainly operates in Hyderabad, Rangareddy, Medak, and Karimnagar districts in AP. AGRAS RESIDENCY: CRISIL Suspends D Rating on INR160MM LT Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Agras Residency Pvt Ltd (ARPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 160 CRISIL D The suspension of rating is on account of non-cooperation by ARPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ARPL is yet to provide adequate information to enable CRISIL to assess ARPL'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 by Mr. Pramod Kumar Agarwal and his family, ARPL operates a three-star hotel, Mercure, in Hyderabad (Andhra Pradesh). The hotel commenced commercial operations in April 2010. ALFANZAW KNITS: CRISIL Suspends B- Rating on INR32.5MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Alfanzaw Knits Exports (AKE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32.5 CRISIL B-/Stable Term Loan 23.8 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by AKE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AKE is yet to provide adequate information to enable CRISIL to assess AKE'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'. Set up in 2008 by Mr. Rajendra Kapoor and Mr. Neeraj Jain, AKE manufactures knitted fabric at its facilities in Ludhiana (Punjab). ALGYPUG ENCLOSURES: CRISIL Suspends B- Rating on INR38.4MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Algypug Enclosures Pvt Ltd (AEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL B-/Stable Letter of credit & Bank Guarantee 5.0 CRISIL A4 Long Term Loan 38.4 CRISIL B-/Stable Proposed Cash Credit Limit 10.0 CRISIL B-/Stable Proposed Term Loan 6.2 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by AEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AEPL is yet to provide adequate information to enable CRISIL to assess AEPL'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, AEPL manufactures standard and customised sheet metal fabricated enclosures. The company is promoted by Pugilistic Capital, a privately held, India-focused special situations fund incorporated in Mauritius. ALLIED ICD: CRISIL Suspends D Rating on INR62.7MM Term Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Allied Icd Services Ltd (AICD). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL D Term Loan 62.7 CRISIL D The suspension of rating is on account of non-cooperation by AICD with CRISIL's efforts to undertake a review of the rating outstanding. Despite repeated requests by CRISIL, AICD is yet to provide adequate information to enable CRISIL to assess AICD'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'. AICD, based in West Bengal and promoted by Mr. Pramod Shrivastav, was incorporated in 1997. The company provides cargo handling, loading and unloading, warehousing, and custom clearance services to exporters and importers. All the services required by importers and exporters for shipment of goods is carried out at Inland Container depot Durgapur (West Bengal). AMIYA STEEL: CRISIL Suspends D Rating on INR127MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Amiya Steel Pvt Ltd (ASPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8.4 CRISIL D Cash Credit 127.0 CRISIL D Long Term Loan 80.73 CRISIL D The suspension of ratings is on account of non-cooperation by ASPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ASPL is yet to provide adequate information to enable CRISIL to assess ASPL'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'. ASPL was set up in 2002 by Mr. Amiya Kumar Mondal and his family. It manufactures sponge iron. The company's manufacturing facility is at Bankura (West Bengal) and has capacity to produce 60,000 tonnes of sponge iron per annum. AMRAPALI ZODIAC: ICRA Withdraws B+ Rating on INR60cr FB Loan ------------------------------------------------------------ ICRA has withdrawn the [ICRA]B+ rating assigned to the proposed INR60.00 crore long term fund based facilities of Amrapali Zodiac Developers Pvt Ltd, as the company has not raised any debt against the rated instruments. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed Fund- 60.00 [ICRA]B+ withdrawn based-limits ANANDA AQUA: CRISIL Suspends B+ Rating on INR40MM Overdraft Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ananda Aqua Exports Pvt Ltd (AAEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Bill Discounting 96 CRISIL A4 Overdraft Facility 40 CRISIL B+/Stable Packing Credit 96 CRISIL A4 Standby Letter of Credit 22 CRISIL A4 The suspension of ratings is on account of non-cooperation by AAEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AAEPL is yet to provide adequate information to enable CRISIL to assess AAEPL'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'. Set up in 2004, AAEPL is part of the Ananda group, and is based in Bhimavaram (Andhra Pradesh). AAEPL processes shrimps and prawns and trades in shrimp feed. ANKIT ISPAT: CRISIL Suspends B Rating on INR130MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ankit Ispat Pvt Ltd (AIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL B/Stable Letter of Credit 40 CRISIL A4 Long Term Loan 30 CRISIL B/Stable Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by AIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AIPL is yet to provide adequate information to enable CRISIL to assess AIPL'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'. AIPL was acquired by its current promoters in 2004. It manufactures ingots, which are used in the manufacture of thermo- mechanically treated bars. The company's day-to-day operations are managed by Mr. Ajay Agarwal and Mr. Ankit Agarwal. APARIMITA POWER: CRISIL Suspends B Rating on INR180MM Bank Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Aparimita Power Ventures Pvt Ltd (APL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 180 CRISIL B/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by APL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, APL is yet to provide adequate information to enable CRISIL to assess APL'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 January 2011, APL is based in Bengaluru (Karnataka); it is promoted by Mr. Sharath Gowda and family and Mr. Thimme Gowda. AROWANA EXPORTS: CRISIL Suspends B Rating on INR95MM Cash Credit ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Arowana Exports (Arowana). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 95 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by Arowana with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Arowana is yet to provide adequate information to enable CRISIL to assess Arowana'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' Arowana, established in February 2012, is the proprietary concern of Mr. Rajendra Shinde. The firm commenced commercial operations in August 2012 and is engaged in export of frozen marine foods, including squid and shrimp. Arowana gets the sea food processed on job-work basis through another entity. AURO MIRA: CRISIL Suspends D Rating on INR125.1MM Long Term Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Auro Mira Bio Energy Pudukottai India Ltd (AMP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 26.5 CRISIL D Long Term Loan 125.1 CRISIL D Proposed Long Term Bank Loan Facility 45.5 CRISIL D The suspension of rating is on account of non-cooperation by AMP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AMP is yet to provide adequate information to enable CRISIL to assess AMP'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'. AMP, a wholly owned subsidiary of AME, currently operates a 7.5 megawatts biomass plant. The aforementioned plant was taken over from Chitra Bio Energy Ltd and commenced commercial production in 2007. Mr. G. Suresh, the Managing Director and Chief Executive Officer, is currently managing the operations of AMP and AME. B.K. CONSTRUCTION: CRISIL Suspends B Rating on INR30MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of B.K. Construction (BKC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 Cash Credit 30 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by BKC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BKC is yet to provide adequate information to enable CRISIL to assess BKC'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'. BKC is a civil contractor undertaking construction projects for roads, buildings, and canals in Maharashtra and Madhya Pradesh. Established since 1992 by Mr. Bashrat Ali Kadar Ali, currently it is a partnership firm with 10 partners of the Ali family. The firm undertakes construction of pucca roads in the villages of Maharashtra under the Prime Minister Gramin Sadak Yojna (PMGSY). In cities, it takes up the job of filling in potholes. B.R. GUAR: ICRA Reaffirms B+ Rating on INR5.5cr Cash Credit ----------------------------------------------------------- ICRA has reaffirmed its rating of [ICRA]B+ on the INR5.50 crore cash credit facility (reduced from INR6 crore) and the INR1 crore term loan of B.R. Guar Gum Private Limited. ICRA has also assigned its rating of [ICRA]B+/[ICRA]A4 to the INR 0.50 crore unallocated limit (increased from nil) of BRGG. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.50 [ICRA]B+; reaffirmed Term Loan 1.00 [ICRA]B+; reaffirmed Unallocated 0.50 [ICRA]B+/[ICRA]A4; assigned ICRA's ratings continue to be constrained by the weak financial profile of the company characterized by low accruals, leveraged capital structure and weak coverage indicators. The ratings continue to factor in the high fragmentation and high competitive intensity in the guar splits manufacturing business resulting in thin profitability, and the vulnerability of the company's profitability to adverse fluctuations in the guar seed prices, as seasonality and crop harvest impact guar seed production. The ratings, however, favourably factor in the location advantage of the company's manufacturing facility in terms of proximity to the main guar seed growing region in Rajasthan, as well as the positive demand outlook for guar gum, particularly from oil and gas and food sectors in overseas markets. Going forward, the firm's profitability would remain exposed to fluctuations in raw material prices due to seasonality of crop harvest and is expected to remain thin due to the low value additive nature of business. The ability of the firm to scale up in a profitable manner and manage its working capital requirements thereby leading to an improvement in the capital structure will be the key rating sensitivities. Incorporated in April 2011, BRGG commenced commercial operations in November 2011. The company is engaged in the manufacturing of guar gum splits at its unit located in Siwani Mandi in Haryana. The current seed processing capacity of the company is 1400 quintals per day. The company sells its product in the domestic market through a network of brokers who, in turn, sell to merchant exporters for use in the oil and gas and food sectors. In 2013-14, BRGG recorded a net profit of INR0.15 crore on an operating income of INR98.60 crore as against a net profit of INR0.10 crore on an operating income of INR185.49 crore in 2012- 13. BALAJI GINNING: CRISIL Suspends B+ Rating on INR60MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Balaji Ginning and Pressing Factory (BGPF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 3.5 CRISIL B+/Stable Term Loan 26.5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by BGPF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BGPF is yet to provide adequate information to enable CRISIL to assess BGPF'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' BGPF was set up as a partnership firm in 2005 by Mr. Dnyaneshwar K. Mali and Mr. Deelip P Patil. The firm is engaged in ginning and pressing of raw cotton (kapas) to make cotton bales. It recently forward integrated its operations by installing a seed crushing unit where cotton oil is extracted from cotton seeds. It also undertakes sell of cotton seed and cotton seed cake. BELLEZA CERAMIC: CRISIL Suspends B+ Rating on INR30MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Belleza Ceramic Pvt. Ltd (BCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8.1 CRISIL A4 Cash Credit 30 CRISIL B+/Stable Proposed Long Term 0.4 CRISIL B+/Stable Bank Loan Facility 11.5 CRISIL B+/Stable Rupee Term Loan The suspension of ratings is on account of non-cooperation by BCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BCPL is yet to provide adequate information to enable CRISIL to assess BCPL'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 by Mr. Chhaganbhai Detroja and his son Mr. Alpesh Detroja, BCPL manufactures wall tiles. Its facility is in Morbi (Gujarat). BHAI SAHIB: CRISIL Suspends B+ Rating on INR58.5MM Cash Credit -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Bhai Sahib and Son (BSS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 58.5 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by BSS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BSS is yet to provide adequate information to enable CRISIL to assess BSS'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'. BSS was incorporated in 1953 by Mr. Ajay Arora. It is engaged in the business of trading in paints and its allied products. Its office is located in Ghanta Ghar, Delhi. BHARTU RAM: ICRA Assigns B Rating to INR10cr Cash Credit -------------------------------------------------------- ICRA has assigned its long term rating of [ICRA]B to the INR10.0 crore cash credit facilities of Bhartu Ram Ashish kumar. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 10.0 [ICRA]B; assigned The assigned ratings factor in modest scale of operations of the firm in agro commodities trading, resulting in modest economies of scale, which coupled with the highly competitive nature of the industry, has resulted in low profitability indicators. The industry in which BRAK operates has high competitive intensity owing to low entry barriers which limits the bargaining power of the firm. Further, the rating also takes into account the susceptibility of the firm's profitability to agro climatic risks and government regulations. However, the assigned ratings favourably factor in the extensive experience of the promoter in the trading business, and the good growth prospects given the favorable demand supply dynamics in the agro commodity industry. BRAK a proprietorship firm was established in 2010-11. The firm is primarily engaged in trading of agro commodities like rice and paddy. The firm operates out of its office at Naya Bazar, Delhi with its proprietor Mr. Ram Gopal Bansal, assisted by other family members, handling the day to day operations of the entity. Recent Results As per the provisional financials for 2013-14, BRAK reported an Operating Income (OI) of INR84.7 Crore and a net profit of INR0.04 Crore as compared to an OI of INR81.5 crore and a net profit of INR0.04 crore in the previous year. BIO NEEDS: CRISIL Suspends D Rating on INR173MM Long Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bio Needs (BN). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL D Long Term Loan 173 CRISIL D Proposed Long Term 14.5 CRISIL D Bank Loan Facility The suspension of ratings is on account of non-cooperation by BN with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BN is yet to provide adequate information to enable CRISIL to assess BN'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' Set up in 2006 as a proprietorship entity, BN is a pre-clinical Contract Research Organization (CRO) which supports pharmaceutical and biotechnology companies by providing preclinical and drug testing laboratory services. The firm is promoted and managed by Dr.S.N.Vinaya Babu. CHHABRA ISPAT: CRISIL Suspends B+ Rating on INR140MM Cash Credit ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Chhabra Ispat Pvt Ltd (CIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 140 CRISIL B+/Stable Letter of Credit 38 CRISIL A4 Term Loan 62 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by CIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CIPL is yet to provide adequate information to enable CRISIL to assess CIPL'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'. CIPL, promoted by Mr. Surendra Kumar Jain, a first generation entrepreneur in the steel industry, produces mild steel billets. Its production facilities near Durgapur (West Bengal) have an installed capacity of 62,400 tonnes per annum. COLOSSUS TRADE: CRISIL Suspends B+ Rating on INR90MM Cash Credit ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Colossus Trade Links Ltd (CTL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 Cash Credit 90 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 2.9 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by CTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CTL is yet to provide adequate information to enable CRISIL to assess CTL'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' CTL primarily trades in scrap metal procured from the domestic automobile sector. It derives over 70 per cent of its revenues from supplying scrap metal to foundries and steel plants and the remainder from sale to traders, electronic original equipment manufacturers (OEMs) and other users of its product portfolio. CTL is headquartered in Delhi and has seven warehouses (three owned and four rented) across northern India, with a combined area of over 15,000 square yards and a combined storage capacity of over 8000 tonnes. CTL was incorporated in 2004 by Mr. Namit Gulati and his family. Before promoting CTL, the promoters were in the same line of business for over 10 years under different group entities that are currently non-operational. CORONATION ARTS: CRISIL Suspends B+ Rating on INR20MM LT Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of The Coronation Arts Crafts (TCA). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6 CRISIL A4 Cash Credit 20 CRISIL B+/Stable Letter of Credit 4 CRISIL A4 Long Term Loan 20 CRISIL B+/Stable Proposed Long Term 10 CRISIL B+/Stable Bank Loan Facility The suspension of ratings is on account of non-cooperation by TCA with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TCA is yet to provide adequate information to enable CRISIL to assess TCA'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' TCA was set up in 1977 and undertakes printing activities across pre-press, printing, and post-press functions in Sivakasi (Tamil Nadu). The partners, Mr. Babu Chidambaram, Mr, Balasubraminam, and Mr. Jawahar Rajasabai, have over 25 years of experience in the printing business, which includes printing of books, writing pads, children's colouring and activity books, school textbooks, exercise notebooks, accounts registers, diaries, calendars, desk calendars, brochures, pamphlets, magazines, display files, self- adhesive labels, and packaging cartons. COTS KNITS: CRISIL Suspends D Rating on INR43MM Cash Credit ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of The Cots Knits (TCK). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL D Cash Credit 43 CRISIL D Cheque Discounting 2.5 CRISIL D Foreign Bill Purchase 5 CRISIL D Long Term Loan 23.4 CRISIL D Packing Credit 30 CRISIL D The suspension of ratings is on account of non-cooperation by TCK with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TCK is yet to provide adequate information to enable CRISIL to assess TCK'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 as a proprietorship firm in 2008, TCK is engaged in manufacturing readymade garments. TCK is promoted by Mr. T.Sharan Chinnu. CTC MALL: CRISIL Suspends B+ Rating on INR80MM Cash Credit ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of CTC Mall Tradex Pvt Ltd (CTC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by CTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CTC is yet to provide adequate information to enable CRISIL to assess CTC'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' CTC was set up in 2004 by Mr. Suresh Chhabra. It retails ready- made garments, mainly sarees, suits, and lehengas. CTC has its retail outlet at Moti Nagar (New Delhi). DEEPAK CONSTRUCTIONS: CRISIL Suspends B Rating on INR20MM Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Deepak Constructions (DC; part of Gojagekar group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 20 CRISIL B/Stable Bank Loan Facility The suspension of ratings is on account of non-cooperation by DC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DC is yet to provide adequate information to enable CRISIL to assess DC'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' For arriving at its rating, CRISIL has combined the business and financial risk profiles of DC and its group entity Niwara Builders (NB; together referred to as the Gojagekar group). This is because the two entities are expected to derive business synergies from each other in executing its upcoming real estate residential project, 'Ganesh Baag' and expected cash flow fungibility between them. Established in 1994, the Gojagekar group consists of two proprietorship entities, DC and NB promoted by Mr. Gurunath Gojagekar and his son Mr. Deepak Gojagekar, respectively. Both the entities are in the real estate development business. DHARMRAJ ALUMINIUM: CRISIL Suspends B+ Rating on INR130MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Dharmraj Aluminium Industries Pvt Ltd (DAIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable Proposed Cash Credit Limit 130 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by DAIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DAIPL is yet to provide adequate information to enable CRISIL to assess DAIPL'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' DAIPL, incorporated in 2011, manufactures aluminium ingots. The company is currently promoted and managed by Mr. Vijay C Gujar and Mr. Bharat B Gujar. It has a manufacturing facility in Aurangabad (Maharashtra) with a capacity of 18,000 tonnes per annum. DWARIKA BALAJI: CRISIL Suspends B Rating on INR270MM Bank Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Dwarika Balaji (DB). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 270 CRISIL B/Stable Bank Loan Facility The suspension of ratings is on account of non-cooperation by DB with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DB is yet to provide adequate information to enable CRISIL to assess DB'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' DB, incorporated in 2007, is engaged in development of integrated township at Muzaffarnagar, Uttar Pradesh. DB is an association of person (AOP). Main partner of DB is Dwarika Projects Ltd. and its directors Mr. Raj Kishore Verma and his brother Mr. Brij Kishore Verma are key promoters of DB. ENTRUST GRANITES: CRISIL Suspends B Rating on INR67.5MM Bank Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Entrust Granites Pvt Ltd (EGL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL A4 Bill Purchase 5 CRISIL A4 Cash Credit 10 CRISIL B/Stable Letter of Credit 4.2 CRISIL A4 Packing Credit 5 CRISIL A4 Proposed Long Term Bank Loan Facility 67.5 CRISIL B/Stable Term Loan 43.3 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by EGL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, EGL is yet to provide adequate information to enable CRISIL to assess EGL'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' EGL, incorporated in 2010, is promoted by Mr. Banaram Chaudhary and his family. The company commenced commercial production in November 2011. It processes granite slabs. EGL has quarries in Udaipur (Rajasthan). GANESH MEDIA: CRISIL Suspends B- Rating on INR150MM Cash Credit --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ganesh Media Pvt Ltd (GMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by GMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GMPL is yet to provide adequate information to enable CRISIL to assess GMPL'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 January 2012, Ganesh Media Pvt Ltd (GMPL) is engaged in the business of trading of satellite rights for movies. The company is promoted by Mr. Satya Vara Prasad and his friend Mr. Venkat Chowdhary. GAYATHRI SUSTAINABLE: ICRA Reaffirms C Rating on INR22.87cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the long-term rating assigned to INR22.87 crore fund based limits of Gayathri Sustainable Energies India Private Limited at [ICRA]C. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loan 22.87 [ICRA]C reaffirmed The reaffirmation of the rating continues to be constrained by the inability of the wind power plants of the company to achieve the expected plant load factor (PLF) partly owing to grid non- availability with Tamil Nadu Generation and Distribution Corporation (TANGEDCO); modest financial characterized by high gearing and weak coverage indicators; and modest scale of operations of the company. The rating is also constrained by its dependence on a single customer and risks arising out of the option given to the customer to move out of the power purchase agreement by providing a 90-day notice period, raising revenue generation concerns. The reaffirmation of rating, however, derives comfort from the reputation of Gamesa, a leader in wind energy equipment manufacturing, which is the operational and maintenance partner of the company, and the attractive tariff received by the company from its customer. Founded in 2011, GSEPL is engaged in wind power generation. The company is headquartered in Hyderabad while its wind power plants are located in Tamil Nadu. It has established five wind electric generators, with 0.85MW generation capacity each, in association with Gamesa in Coimbatore. Additionally, two wind electric generators with 0.85MW capacity each, based in Theni district in Tamil Nadu, were added to GSEPL in 2012. The total production capacity of the company stands at 5.95 MW. Recent Results For FY2014, the company reported an operating income of INR5.05 crore and a net loss of INR2.47 crore as against an operating income of INR4.72 crore and a net loss of INR2.93 crore for FY2013. GORA MAL: ICRA Withdraws B+ Rating on INR13.35cr Bank Loan ---------------------------------------------------------- ICRA has withdrawn its ratings of [ICRA]B+ on the long-term scale and [ICRA]A4 on the short-term scale on the INR13.35 crore bank facilities of Gora Mal Hari Ram Limited as the period of one month since the ratings were put on a notice of withdrawal has expired. GREATECH TELECOM: CRISIL Suspends D Rating on INR60MM LOC --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Greatech Telecom Technologies Pvt Ltd (Greatech). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Cash Credit 30 CRISIL D Letter of Credit 60 CRISIL D Proposed Long Term Bank Loan Facility 44.1 CRISIL D Term Loan 35.9 CRISIL D The suspension of ratings is on account of non-cooperation by Greatech with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Greatech is yet to provide adequate information to enable CRISIL to assess Greatech'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' Greatech was set up in 2004 by Mr. Ramdev Gupta. In 2009-10 (refers to financial year, April 1 to March 31), the company set up a fabric manufacturing unit in Dehradun; the unit caters to the packaging industry. Till 2008-09, Greatech mainly manufactured radio-frequency cables and mobile tower accessories such as connectors, weather-proofing kits, jumpers, surge arrestors, grounding kits, couplers, wall entries, and cable clamps. HERITAGE EDUCATIONAL: CRISIL Suspends D Rating on INR50MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Heritage Educational Society (HES). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D Term Loan 50 CRISIL D The suspension of rating is on account of non-cooperation by HES with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HES is yet to provide adequate information to enable CRISIL to assess HES'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'. HES was set up in 2006. The trust operates Heritage Institute of Hotel & Tourism (HIHT), a training institute. HIHT offers diploma programmes in hotel management. The courses offered by HIHT are approved by All India Council for Technical Education (AICTE). HIHT is affiliated to Punjab Technical University. Mr. D K Singh, the key promoter trustee, looks after the operations of the trust. HIHT currently has three campuses, in Agra, Shimla, and Goa. HIMACHAL FLOUR: CRISIL Suspends B Rating on INR70MM Cash Credit --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Himachal Flour Mills Pvt Ltd (HFMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by HFMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HFMPL is yet to provide adequate information to enable CRISIL to assess HFMPL'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' HFMPL is a private limited company that manufactures atta, suji, and maida. The company was incorporated in 1972 as a partnership firm named Himachal Flour Mills and reconstituted as a private limited company in 1996. The key promoter and director of the company, Mr. Jagmohan Lal Gupta, along with his family members, look after the day-to-day operations of the company. The company's manufacturing facilities are in Kangra (Himachal Pradesh). J. N. TRADERS: CRISIL Reaffirms B Rating on INR65MM Cash Credit --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of J. N. Traders (JNT) continues to reflect JNT's average financial risk profile due to its large working capital requirements, and the vulnerability of its operating margin to volatility in metal prices. These rating weaknesses are partially offset by the extensive experience of the firm's promoters in scrap trading. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 25 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that JNT will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm significantly increases its revenue, while maintaining its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' if JNT's revenue or profitability declines steeply, or if its financial risk profile deteriorates, most likely because of lengthening of its operating cycle. Update In 2013-14 (refers to financial year, April 1 to March 31), JNT's operating income moderated to INR1082.4 million from INR1191.2 million in 2012-13 due to weak demand scenario. Due to the trading nature of the firm's business, its operating margin has remained stagnant at 2.1 to 2.3 per cent over the four years ended March 31, 2014. CRISIL expects JNT's operating margin to remain low at around 2 per cent over the medium term. Despite low inventory of 10 to 15 days, JNT's operations are working capital intensive, driven by large receivables. The firm has to offer credit of 30 to 90 days to its customers because of intense competition. This has resulted in high gross current assets (GCAs) of 67 to 101 days over the past four years. CRISIL believes that the firm's GCAs will remain at around 100 days, and continued support from its creditors will remain a rating sensitivity factor. JNT' financial risk profile remains average with a small net worth, low total outside liabilities to tangible net worth (TOLTNW) ratio, and weak debt protection metrics. It had a net worth of INR80.2 million as on March 31, 2014, driven by a low capital base, low accretion to reserves, and withdrawal of funds by promoters in the past. The firm's gearing and TOLTNW ratio were around 1.05 times and 3.29 times, respectively, as on March 31, 2014. Its debt protection metrics were average, with interest coverage and net cash accruals to total debt ratios estimated at 1.83 times and 0.11 times, respectively, for 2013-14. JNT's financial risk profile is expected to remain average in the near to medium term. JNT was established as a partnership firm in 1983 by Mr. Abdul Kareem Japher, his brother, Mr. Zakir Hussain, and a business associate, Mr. Niranajan Vakil. The firm currently has four partners, which include Mr. Abdul Kareem Japher, his two brothers, and his son. JNT derives around 80 per cent of its revenue from trading in ferrous metals and the rest from trading in non-ferrous metal scrap. In the ferrous segment, the firm trades mostly in steel scrap, and in the non-ferrous segment, it trades mostly in copper. JNT has three warehouses, with a combined area of 80,000 square feet in Pune (Maharashtra). KNOWLEDGE EDUCATION: ICRA Suspends D Rating on INR6.5cr Term Loan ----------------------------------------------------------------- ICRA has suspended [ICRA]D rating assigned to the INR 6.50 crore, term loan facilities of Knowledge Education Foundation. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MEENAKSHI INDUSTRIES: CRISIL Reaffirms B Rating on INR30MM Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Meenakshi Industries (MI) continue to reflect MI's start-up nature of operations with limited track record and susceptibility of the firm's operating profitability to volatility in raw material prices and to unfavourable changes in government regulations. These rating weaknesses are partially offset by the extensive experience of MI's promoter in the rice milling industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable (Reaffirmed) Term Loan 29.2 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that MI will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm significantly improves its scale of operations and operating profitability on a sustainable basis, supported by the stabilisation of its commercial operations, leading to an improvement in its financial risk profile and liquidity. Conversely, the outlook may be revised to 'Negative' if MI fails to stabilise its operations in time because of sub-optimal capacity utilisation, or if it undertakes a larger-than-expected, debt-funded capital expenditure programme, resulting in deterioration in its financial risk profile. Update The firm commenced commercial operations in 2013-14 (refers to the financial year, April 1 to March 31) and achieved revenue of nearly INR140 million in the first ten months of its operations with operating margin of 5.7 per cent. Food Corporation of India (FCI) was the major contributor to revenue, with over 80 per cent share in 2013-14. The firm's Gross Current Assets (GCA) stood at about 150 days as on March 31, 2014 owing to high inventory of 120 days. The high inventory days are on account of the firm operating the mill for only ten months in 2013-14. The liquidity profile of the firm remains adequate, marked by moderate bank limit utilisation of about 77 per cent for the twelve months ended September 2014. However, the expected net cash accruals of INR4.1 million in 2014-15 are tightly matched with scheduled term debt repayments of INR3.6 million. The ramp up of revenue in the medium term, while maintaining its operating margin, will affect the liquidity profile and thus remains a key rating sensitivity factor. MI was set up in 2012 by Ms.Badavath Laxmi. The firm, based in Warangal (Telengana), is a proprietorship concern that mills and processed paddy into rice. The firm commenced commercial operations in April 2013. On a provisional basis, MI has reported a net loss of INR0.36 million on net sales of INR138.5 million for 2013-14. MURANO TILES: ICRA Reaffirms B Rating on INR5.40cr Term Loan ------------------------------------------------------------ ICRA has reaffirmed the long term rating of [ICRA]B to the INR2.50 crore cash credit facility and the INR5.40 crore term loans of Murano Tiles Private Limited. The short term rating of [ICRA]A4 has also been reaffirmed to the INR0.90 crore non fund based facilities of MTPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Facility 2.50 [ICRA]B reaffirmed Term Loans 5.40 [ICRA]B reaffirmed Bank Guarantee 0.90 [ICRA]A4 reaffirmed The reaffirmation of ratings take into account the company's modest scale of operations, single product portfolio of ceramic wall tiles which limits its sales prospects to large distributors and institutional players, the highly competitive business environment given the fragmented nature of the tiles industry and MTPL's weak financial profile as reflected by low profitability levels, leveraged capital structure and moderate coverage indicators. The ratings also continue to factor in the vulnerability of MTPL's profitability to the cyclicality associated with the real estate industry as well as to volatility in the prices of raw materials and natural gas. The ratings, however, continue to take comfort from the longstanding experience of the promoter in the ceramic industry and the location advantage for raw material procurement by virtue of the company's presence in Morbi (Gujarat). Incorporated in 2010, Murano Tiles Private Limited (MTPL) commenced commercial production of ceramic wall tiles on 19th August 2011. The sole plant of the company is located at Morbi in Rajkot district of Gujarat and operates with an installed capacity of 36,000 MTPA. MTPL is promoted by Mr. Prakash Aghara along with his family members having an experience of around a decade in the ceramic tile industry. The company currently manufactures wall tiles of sizes 12"x12", 18"x12" and 24"x12". Recent Results For the year ended March 31, 2014, Murano Tiles Private Limited reported an operating income of INR 21.50 crore and profit after tax of INR0.18 crore as against an operating income of INR 21.86 crore and profit after tax of INR 0.04 crore for the year ended March 31, 2013. PARMESHWARI SILK: ICRA Reaffirms B+ Rating on INR21cr LT Loan ------------------------------------------------------------- ICRA has reaffirmed its long-term rating [ICRA]B+ and short-term rating at [ICRA]A4 on INR24.55 crore fund based and non-fund based facilities of Parmeshwari Silk Mills Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 21.00 [ICRA]B+; Reaffirmed Based Limits Long-Term/Short- 3.55 [ICRA]B+/[ICRA]A4; term Limits Reaffirmed (interchangeable) ICRA's rating continues to factor in the company's weak debt coverage metrics which is on account of modest profitability and high leverage. Given the modest scale and positioning of the company and fragmented nature of the industry, the pricing power of PSML remains limited, which has kept the profitability and accruals modest at modest levels. This coupled with working capital intensive nature of the business and regular capital expenditure incurred by the company for modernization and expansion of manufacturing facilities has kept the reliance on debt high, resulting in modest debt coverage and liquidity. The relatively large debt funded capital expenditure incurred by the company during FY2014 for upgradation and expansion of the in- house installed capacity resulted in stretched financial profile as the accruals remained modest. Notwithstanding the above concerns, the rating continues to factor in the long track record of the company in marketing of dress material in the domestic market with in-house weaving and embroidery facilities and the satisfactory capacity utilization levels which have increased over the years, resulting in steady revenue growth. Going forward, the ability of the company to optimally utilize the enhanced capacity and improve the profitability margins will be critical for future cash accruals and debt servicing and thus would be the key rating sensitivities. PSML was incorporated in 1993 and is engaged in selling of shirting fabric and ladies dress material under its brand Ramtex. The company has in-house manufacturing capacity for weaving, embroidery and digital printing in Ludhiana (Punjab) and has 84 looms (weaving capacity of 48 lac meters per annum), 45 embroidery machines and 2 digital printing machines as on March 31, 2014. PRASHANTH EDUCATIONAL: ICRA Reaffirms B+ Rating on INR6.48cr Loan ----------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]B+' assigned to INR7.00 crore fund based limits of Prashanth Educational Society. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash credit 0.20 [ICRA] B+ reaffirmed Term Loan 6.48 [ICRA] B+ reaffirmed Unallocated 0.32 [ICRA] B+ reaffirmed The reaffirmed rating continues to be constrained by modest revenue receipts of the society and its moderate financial profile characterized by moderate gearing and coverage indicators. The rating is also constrained by delays in fee reimbursement by the government which stretches the liquidity profile of the society, high competition from other established institutions in the region and the highly regulated nature of Indian education sector which requires various approvals for addition of new courses as well as seats. The reaffirmed rating, however, continues to derive comfort from the steady growth in revenue receipts of the society. albeit on a modest base. The inception of classes up to V standard in Accord International School in the last academic year coupled with increase in receipts from Prashanth English Medium Schools contributed to this increase in revenue in FY2014. This was despite the fall in revenue receipts from Accord Business School. The rating also derives comfort from the reputation enjoyed by the institutions owned by the society in Tirupati and the vast experience of the management in the education sector. The ability of the society to increase its revenue, which is expected to be supported primarily by receipts from Accord International School and Prashanth English Medium Schools, coupled with improvement in its capital structure and coverage indicators would be the key rating sensitivity going forward. Registered in 2007, Prashanth Educational Society has three English medium Schools, an international School and a business school under its auspice. The institutions are located in Tirupati in Andhra Pradesh. The society is promoted by Mr, V. Chandra Sekhar Reddy who has more than three decades of experience in the education sector. Recent Results For FY2014, the society reported revenue of INR5.03 crore and a net surplus of INR0.80 crore as against revenue of INR4.02 crore and a net surplus of INR 0.81 crore reported for FY2013. RAMKUMAR TEXTILE: ICRA Reaffirms B+ Rating on INR8.75cr EPC Loan ---------------------------------------------------------------- ICRA has reaffirmed its [ICRA]B+ rating on the INR11.50 crore (reduced from INR14.50 crore) fund-based limits of Ramkumar Textile Private Limited. ICRA has also re-affirmed the [ICRA]A4 rating on the INR0.50 crore short term non-fund based limits of RTPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 1.00 [ICRA]B+; reaffirmed EPC/PCFC/FPB/ FBD/FCBD 8.75 [ICRA]B+; reaffirmed Export Gold Card 1.75 [ICRA]B+; reaffirmed Non Fund Based 0.50 [ICRA]A4; reaffirmed The rating reaffirmation takes into account the fact that while there was an improvement in RTPL's working capital cycle during the course of 2013-14, towards the end of the year there was a build up of inventory, with higher level of finished goods in March 2014. The improved working capital management during the course of the year resulted in lower average working capital limit utilization during 2013-14 and resulted in OPBDITA/Interest improving to 1.24x as on March 31, 2014 from 0.90x as on March 31, 2013. However the inventory build up at year end caused a build up of working capital debt, which translated into deterioration in coverage indicators with Debt/OPBDITA of 8.94x and NCA/Debt of 1.76% as on March 31, 2014. An equity infusion of INR 2.1 crore, helped offset the impact of the higher working capital borrowings and the gearing improved slightly to 1.11x as on March 31, 2014 from 1.25x, an year ago. These factors apart, the ratings continue to be constrained by the highly competitive and fragmented nature of fabric export business which limits the pricing flexibility of the company and results in thin margins; as also evident in the weak return indicators. Further the company's profitability remains exposed to adverse fluctuations in foreign exchange rates, given the significant contribution of exports to its overall revenues. However, the ratings continue to draw comfort from the long standing experience of the promoters in the fabric business and its established relationships with customers and suppliers. Going forward, the company's ability to improve its revenue growth, achieve higher profitability and reduce its working capital requirements while improving its debt coverage indicators will be the key rating sensitivities. RTPL, incorporated in 1996, is a Bhilwara based exporter of synthetic fabrics. It is promoted by the Somani family, which has been engaged in the synthetic fabrics business for more than a decade. RTPL does not have its own manufacturing unit and outsources production of fabric to local fabric weavers in Bhilwara on a job work basis. RTPL sells suiting fabric for men and women in poly viscose, poly wool, 100% wool, poly cotton, and lycra in various weaves like plain, twill, and satin. The company also deals in fabric for traditional Arabian clothing like mashla, abaya, and emma for men and spun polyester high twist voile plain dyed and printed for women. RAMKY INFRASTRUCTURE: Asked to go for Debt Restructuring -------------------------------------------------------- The Times of India reports that Ramky Infrastructure Ltd on December 15 informed the bourses that the Joint Lenders Forum (JLF), a group formed by its lenders, has asked the company to go for debt restructuring. "The JLF of consortium banks, in order to arrive at an early and feasible solution and preserve the economic value of the underlying assets as well as the lenders' loans, has advised the company to go for restructuring under JLF as the corrective action plan (CAP). The company has submitted its CAP to State Bank of India, the lead member of the lenders consortium, and the JLF will finalize the restructuring package," said the company, which has a debt of over INR3,000 crore and has been running into losses, TOI relays. During the half-year ended September 30, 2014, the company reported higher losses of INR282.12 crore as against INR106.16 crore losses during the year ago period, the report discloses. Even during the second quarter ended September 30, 2014, Ramky's losses mounted to INR190.53 crore from INR72.04 crore during the corresponding quarter of the last financial year, according to TOI. India-based Ramky Infrastructure Ltd provides integrated construction, infrastructure development, and management services. SHAKTIMAN BIO: ICRA Assigns B Rating to INR4.50cr Cash Credit ------------------------------------------------------------- ICRA has assigned its long term rating of [ICRA]B to the INR6.00 crore fund based limits of Shaktiman Bio Agro Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 0.75 [ICRA]B; assigned Cash Credit 4.50 [ICRA]B; assigned Unallocated 0.75 [ICRA]B; assigned The rating is constrained by the stretched liquidity position of the company as reflected in full utilization of the working capital limits in the past. The rating also takes into account the company's modest scale of operations and weak bargaining power vis-a-vis both customers and suppliers. Further, the highly competitive nature of the industry, with low entry barriers and low value additive nature of the business, with limited product differentiation is likely to put pressure on the profitability of the company in the future. The rating also takes into account the competition from substitutes like Poly Propylene (PP) bags which are technically superior to gunny bags, thereby impacting the demand outlook. The rating also factors in the relatively high gearing levels of the firm, primarily due to debt funding of its working capital requirements. Nevertheless, the rating draws comfort from the extensive experience of the promoters in the packaging industry and the fact that the company is a part of the Ashwani Oberoi Construction Company India limited (AOCC) group which has six companies, which are engaged in the trading and manufacturing of packaging products like PP bags and gunny bags. The rating also positively factors in the steady growth in the operating income and profitability in the past along with location advantage that the firm enjoys due to its proximity to major food grain producing areas. Going forward, the ability of the company to maintain growth in its revenues and profitability and optimally manage its working capital cycle, will be the key rating sensitivities. Incorporated in 2007 as a private limited company, SBAIPL is primarily engaged in the trading of gunny bags mainly used in packaging for rice, sugar and other food grains. The company has now also started manufacturing corrugated boxes from January 2014 and has an installed capacity of 21600 metric tonnes for the same. The company is a part of the AOCC group which is also engaged in a similar line of business. The key promoters of the company are Mr. Ashwani Kumar Oberoi, Mr. Sunil Kumar Oberoi and their family members. The manufacturing facility of the company is located in the Industrial estate in Yamuna Nagar, Haryana. Recent Results SBAIPL reported a net profit of INR0.16 crore on an operating income of INR6.71 crore for the year ended March 31, 2014 and a net profit of INR0.12 crore on an operating income of INR5.27 crore for the previous year. SMITH STRUCTURES: CRISIL Assigns B+ Rating to INR90MM Cash Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Smith Structures (India) Private Limited (SSIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable The rating reflects modest scale of operation and large working capital requirement along with below average financial risk profile marked by low net worth. These rating weaknesses are partially offset by extensive experience of the promoters in the industry along with near term revenue visibility. Outlook: Stable CRISIL believes SSIPL will continue to benefit from its promoter experience in the industry. The outlook may be revised to 'Positive' in case of significant increase in the company's scale of operations along with profitability leading to higher accruals and improvement in the overall financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the company's liquidity, driven by large incremental working capital requirements, lower cash accruals or any large debt funded capex. Established in 2011, SSIPL is engaged in Pre ' Engineered Metal Building System (PEB) designs, fabrication and erection works. The company's capacity currently stands at around 50,000 MT per annum. The plant is located in Gandhidham (Kutch) Gujarat and is managed & operated by the Panchal family. SPICEJET LTD: India May Ask Lenders to Extend Up to INR600cr Loan ----------------------------------------------------------------- Economic Times reports that the Civil Aviation Ministry said on December 16 it may request Indian banks/financial institutions to extend loans of up to INR600 crore to SpiceJet Ltd as part of measures to keep the carrier functional. Besides, it will also request the Finance Ministry to permit external commercial borrowing (ECB) for working capital as special dispensation, a Ministry release said, ET relays. ET relates that these and many more suggestions, have been approved by Civil Aviation Minister Ashok Gajapathy Raju after due consideration as a shut down would have been a major setback to the aviation sector, it said. The measures, however, comes with a rider that the beleagured airline will commit capital infusion at the earliest, the report notes. ET says the steps came a day after SpiceJet's Chief Operating Officer Sanjiv Kapoor, along with Sun Group CFO S L Narayanan, met Raju and DGCA Prabhat Kumar and sought the government's help to overcome the crisis. "Indian banks may be requested to give some working capital loan based on the assurances of the promoter. Banks or financial institutions to lend up to INR600 crore backed by a personal guarantee of the Chairman, SpiceJet," the release, as cited by ET, said. This should be paid immediately after securing the long-term investment which will take around eight weeks to consummate, it said, ET relates. In addition, ET says, the Ministry of Finance will be requested to permit ECB for working capital as special dispensation as was done in the 2012 to help the airline wriggle out of the financial morass. At the same time, the airline, with total liabilities standing at INR2,000 crore, including dues to the public sector oil firms and the Airports Authority of India (AAI), may get credit facility for up to 15 days from the oil firms and AAI, the government said. Reuters reports that the civil aviation ministry also said the regulator would be asked to allow SpiceJet to sell advance tickets until March 31, 2015. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 17, 2014, Bloomberg News said India's government will decide on the future of SpiceJet Ltd. after the budget carrier, which has canceled flights and delayed paying staff this month, sought state support amid concerns it may wind down operations. Bloomberg noted that SpiceJet reported five straight quarterly losses and tried for more than two years to woo an external investor to one of the world's most expensive markets for fuel, which accounts for as much as 50 percent of the costs for some Indian carriers. Bloomberg said SpiceJet reduced its fleet of Boeing planes, delayed wages, and faced regulatory scrutiny after a spate of cancellations. The carrier is India's second-biggest budget airline, after IndiGo. About SpiceJet SpiceJet Limited -- http://www.spicejet.com/-- is an India-based low-budget air carrier. The Company operates daily flights between major cities in India. As reported in the Troubled Company Reporter-Asia Pacific on May 21, 2014, The Times of India said SpiceJet has posted its highest ever annual loss of INR1,003.2 crore in the financial year 2013-14 up five times from INR191 crore in the previous fiscal. SPICEJET LTD: Grounds Planes as India Oil Companies Refuse Fuel --------------------------------------------------------------- Anurag Kotoky at Bloomberg News reports that SpiceJet Ltd. had to ground its fleet on December 17 after oil companies rebuffed a government request for fuel on credit, a person familiar with the situation said. Shares dropped, Bloomberg says. No planes are operating now, a company official told reporters, asking not to be identified, citing rules, Bloomberg relates. Indian oil producers are still considering an aviation ministry proposal on December 16 to give fuel to the airline, the airline official, as cited by Bloomberg, said. According to Bloomberg, the civil aviation ministry is in talks with oil companies about fueling SpiceJet planes, and has asked state-run banks and oil companies to protect "stakeholder interest," junior aviation minister Mahesh Sharma told reporters in New Delhi on December 17. Bloomberg says India's government said on December 16 banks may be asked to lend as much as INR6 billion ($94 million) to billionaire Kalanithi Maran's carrier, as the indebted carrier seeks investment over the next two months to keep flying. State oil companies will be asked to provide SpiceJet with as much as 15 days worth of credit and airport operators will offer a 15-day payment window, the Civil Aviation Ministry said, Bloomberg relays. According to the report, the government said Maran will guarantee the loans and repay as soon as an investment is secured, part of a package of steps to prevent a shutdown that would damage India's airline industry. It arranged a credit line for fuel for SpiceJet and eased booking curbs imposed after the carrier canceled flights and missed salary payments, the report adds. The airline's shares slumped as much as 8.3 percent after gaining as much as 7.6 percent earlier on December 17, Bloomberg says. The stock rose Dec. 16 after the government said the carrier could take bookings up to March 31. Bloomberg relates that the Directorate General of Civil Aviation earlier had barred SpiceJet from accepting bookings for travel more than a month ahead. The measures buy the budget airline "breathing time" and don't count as a bailout, Chief Operating Officer Sanjiv Kapoor told Bloomberg. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 17, 2014, Bloomberg News said India's government will decide on the future of SpiceJet Ltd. after the budget carrier, which has canceled flights and delayed paying staff this month, sought state support amid concerns it may wind down operations. Bloomberg noted that SpiceJet reported five straight quarterly losses and tried for more than two years to woo an external investor to one of the world's most expensive markets for fuel, which accounts for as much as 50 percent of the costs for some Indian carriers. Bloomberg said SpiceJet reduced its fleet of Boeing planes, delayed wages, and faced regulatory scrutiny after a spate of cancellations. The carrier is India's second-biggest budget airline, after IndiGo. About SpiceJet SpiceJet Limited -- http://www.spicejet.com/-- is an India-based low-budget air carrier. The Company operates daily flights between major cities in India. As reported in the Troubled Company Reporter-Asia Pacific on May 21, 2014, The Times of India said SpiceJet has posted its highest ever annual loss of INR1,003.2 crore in the financial year 2013-14 up five times from INR191 crore in the previous fiscal. STATUS CLOTHING: ICRA Reaffirms B+ Rating on INR9cr Cash Credit --------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ to the INR14.50 crore long-term fund based facilities of Status Clothing Company Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term, fund- 5.50 [ICRA]B+; reaffirmed based facilities- Term Loan Long-term, fund- 9.00 [ICRA]B+; reaffirmed based facilities- Cash Credit The rating continues to be constrained by the small scale of weaving operations in a highly fragmented and cost competitive industry which restricts pricing power. The rating is further constrained by the weak financial profile characterised by low profitability levels, weak return indicators, leveraged capital structure and modest coverage indicators. ICRA also notes the highly capital intensive business operations, with need to undertake frequent capex to support the increased scale of operations. ICRA, however, favourably factors in the long standing experience of promoters in the fabric manufacturing business, the diversified customer and supplier base and order backed purchases, which mitigates raw material risk to an extent. Status Clothing Company Limited (SCCL) was set up in 1996 as a partnership firm. In July, 2011, the firm was converted into a private limited company and the name was changed to its current name. It is engaged in manufacturing and trading of gray fabric i.e. fabric for shirting and suiting. The registered office and manufacturing plant of the company is located in Tarapur, Thane. The manufacturing plant is spread over an area of 45,000 square feet with installed capacity of 5.60 lac meters per month. The company sells gray fabric mainly to exporters/ local traders and is also an outsourcing house for other branded finished fabric players. The company has an in-house design team and also manufactures as per customer's design specifications. The company sells its fabrics in local market, mainly in and around Mumbai. Recent results As per its audited results, SCCL reported profit after tax (PAT) of INR0.20 crore on operating income of INR37.34 crore for FY 2013-14. VICO FORGE: CRISIL Suspends B- Rating on INR65MM Cash Credit ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Vico Forge Pvt Ltd (VFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 Cash Credit 65 CRISIL B-/Stable Letter of Credit 40 CRISIL A4 Proposed Long Term Bank Loan Facility 54.9 CRISIL B-/Stable Term Loan 35 CRISIL B-/Stable 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'. Incorporated in 1986, VFPL manufactures forged components'such as steering arms, steering knuckles, gear shifting forks, and engine- connecting rods'for customers in the automotive sector, mainly Tier-I vendors for Mahindra and Mahindra Ltd and Tata Motors Ltd. VFPL is promoted by Mr. Amrutlal Panchal, Mr. Babulal Panchal and their family. VFPL has its manufacturing unit in Vapi (Gujarat). ================= I N D O N E S I A ================= MEDCO ENERGI: S&P Affirms Then Withdraws 'B' CCR Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating and 'axBB-' long-term ASEAN regional scale rating on Indonesia-based oil & gas exploration and production company PT Medco Energi Internasional Tbk. (Medco). S&P then withdrew the ratings at the company's request. At the time of the withdrawal, the stable outlook on Medco reflected S&P's view that the company's ample short-term investments of US$265 million should enable the company to meet its upcoming debt maturities of US$236 million over the coming 12 months from Sept. 30, 2014, without the need to refinance. Medco also intends to reduce capital expenditure, which should balance the impact from weaker oil price on its earnings. S&P expects it to be able to maintain its interest cover metrics at 2.8x-3.0x, a level we consider appropriate for the ratings. In return, S&P considered Medco's liquidity position as less than adequate at the time of withdrawal. S&P believes substantial cutbacks on capital expenditure--an exercise the company has limited track record in--might take longer than the company expects. In addition, potentially lower earnings and declining cash balances will cause the company's sources of liquidity to decline. Nevertheless, S&P also believes Medco's high cash reserves, good access to domestic capital markets, and well- diversified banking relationships will mitigate any negative impact on its liquidity. The rating reflected the company's small to midsize asset base, declining production at its maturing blocks, high geographic and project concentration. These weaknesses are partly offset by good growth potential at its gas development blocks and rising gas sale price. The rating also reflects the Medco's highly leveraged balance sheet compared with relatively lower and stagnant profitability. RATINGS LIST Ratings To From PT Medco Energi Internasional Tbk. Corporate credit rating Foreign and Local Currency B/Stable/-- B/Stable/-- ASEAN Regional Scale axBB-/--/-- axBB-/--/-- Ratings Subsequently Withdrawn PT Medco Energi Internasional Tbk. Corporate credit rating Foreign and Local Currency NR B/Stable/-- ASEAN Regional Scale NR axBB-/--/-- ==================== N E W Z E A L A N D ==================== SOUTH CANTERBURY: FMA Closes Probe Into Possible Civil Claims ------------------------------------------------------------- The Financial Markets Authority (FMA) has closed its inquiries into potential civil claims relating to South Canterbury Finance Limited (SCF). After careful consideration the FMA has decided not to take any further action. In making its decision, the FMA took into account that Crown Asset Management Limited (CAML) had taken civil proceedings against the directors of SCF, for failing to comply with their duties as directors and that a large number of investors have received payment under the Crown Retail Deposit Guarantee Scheme. The FMA's Director of Enforcement, Belinda Moffat, says the FMA conducted thorough inquiries into several aspects of SCF. These included whether SCF had met its continuous disclosure obligations, and the respective roles of the trustee and the auditor. The FMA has not found sufficient evidence that would justify the significant additional costs of taking further proceedings. "Given CAML's civil case and the criminal case that has recently been before the courts, the FMA doesn't believe further proceedings are appropriate," Ms Moffat said. Ms Moffat said further recoveries for investors, or the taxpayer, were unlikely from the FMA proceedings. "The FMA has made the decision to close these inquiries after very careful consideration of our responsibility to act in the best interests of the public. This decision does not diminish in any way the losses suffered by investors, taxpayers or preference shareholders, many of whom will continue to feel the ramifications of the collapse of SCF for years to come." About South Canterbury Finance Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the provision of financial services. The Company's principal activities were borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advanced funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On Aug. 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government repaid South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the Crown retail deposit guarantee scheme. SOUTH CANTERBURY: Sharebroker Mulls Civil Action Against SCF ------------------------------------------------------------ Niko Kloeten and Marta Steeman at Stuff.co.nz reports that sharebroker Chris Lee will be seeking a formal legal opinion from a Queens Counsel on the viability of taking a civil action against South Canterbury Finance after the financial markets watchdog declined to do that. Stuff.co.nz relates that Mr. Lee, based on the Kapiti Coast north of Wellington, said some 3,200 investors had bought preference shares in South Canterbury Finance. During 2009, the investors were told the company was doing well, and South Canterbury even paid dividends to shareholders only two months before its collapse when it was shown to have NZ$800 million more liabilities than assets, the report recalls. The preference shareholders he was leading include more than 100 of his clients, Stuff.co.nz says. According to the report, Mr. Lee said he would pay for the Queens Counsel opinion himself. Stuff.co.nz relates that Mr. Lee and a QC guiding him had met the FMA and they had given him a "legally privileged and confidential" explanation of their position which he could not talk about. At the moment the FMA had no intention of prosecuting the company, Mr. Lee said. "They've taken the decision that the next step really is in my court," the report quotes Mr. Lee as saying. The report relates that Mr. Lee said he had no criticism of what the FMA was doing and when he received the QC's opinion the FMA had asked him to supply them a copy. He thought it was logical another QC should have a look at it, the report relays. He expected to have meetings with the preference shareholders after receiving the QC opinion. Most of them were in Timaru, Christchurch and Dunedin, Stuff.co.nz notes. Mr. Lee said the opinion might not come until at least February and would take time, adds Stuff.co.nz. About South Canterbury Finance Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the provision of financial services. The Company's principal activities were borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advanced funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On Aug. 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government repaid South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the Crown retail deposit guarantee scheme. =========== T A I W A N =========== HCP GLOBAL: Moody's Withdraws B2 Corporate Family Rating -------------------------------------------------------- Moody's Investors Service has withdrawn HCP Global Limited's B2 corporate family rating with a stable outlook. Ratings Rationale Moody's has withdrawn the rating for its own business reasons. Founded in Taiwan in 1960 and headquartered in Shanghai, HCP Global Limited is a plastic packaging company that designs, develops and manufactures packaging for cosmetics and skin care products. ********* 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 202-362-8552. *** End of Transmission ***