/raid1/www/Hosts/bankrupt/TCRAP_Public/150706.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, July 6, 2015, Vol. 18, No. 131
Headlines
A U S T R A L I A
ACOUSTIC INDUSTRIES: First Creditors' Meeting Set For July 10
FACAC PTY: Placed in Administration
KIMBERLEY DIAMOND: First Creditors' Meeting Set For July 10
ROYELL PTY: First Creditors' Meeting Set For July 10
SLIDESTREET PTY: Slips Into Liquidation
WENDY'S SUPA: Placed in Voluntary Administration
C H I N A
COUNTRY GARDEN: Moody's Hikes Corporate Family Ratings to 'Ba1'
RENHE COMMERCIAL: Proposed Buyout No Impact on Moody's Caa1 CFR
SUNSHINE 100: Fitch Revises Outlook to Pos. & Affirms 'B-' IDR
UTSTARCOM HOLDINGS: Files Annual Report of iTV Media
H O N G K O N G
NORD ANGLIA: Moody's Rates CHF200MM Sr. Sec. Notes 'B1'
I N D I A
A.A. SNACK: ICRA Assigns B+ Rating to INR0.25cr LT Loan
ABC CERAMIC: CARE Assigns 'B' Rating to INR4.0cr LT Bank Loan
AGARWAL SPONGE: CRISIL Suspends B- Rating on INR550MM LT Loan
AYSHA CASHEW: ICRA Assigns B+ Rating to INR0.50cr LT Loan
BARANI HYDRAULICS: CRISIL Reaffirms B+ Rating on INR107.5MM Loan
BHARAT DEEP: CRISIL Suspends B- Rating on INR50MM Cash Credit
BRAINER IMPEX: CRISIL Suspends 'B' Rating on INR547.5MM Loan
CONCORD HOSPITALITY: CRISIL Suspends 'D' Rating on INR600MM Loan
DIGANTA MUDRANA: CARE Assigns 'B' Rating to INR3.82cr LT Loan
DOLLFINE DEVELOPERS: CRISIL Assigns B+ Rating to INR34MM Loan
ENN AAR: CRISIL Suspends 'B-' Rating on INR30MM Cash Credit
GREENCROP INTERNATIONAL: CRISIL Cuts Rating on INR52.5M Loan to B
GULZAR EDUCATIONAL: Ind-Ra Rates INR358.4MM Facility 'IND BB-'
H. B. RAVIKUMAR: CARE Assigns 'B+' Rating to INR4cr LT Loan
ICON SOLAR: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
IMPRINT VINIMAY: CRISIL Assigns 'D' Rating to INR125MM Term Loan
IRULAPPA MILLS: CRISIL Assigns 'B' Rating to INR70MM Term Loan
J J DEVELOPER: CRISIL Suspends 'B' Rating on INR60MM Term Loan
JAIN OVERSEAS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
K.R.R ENGINEERING: CRISIL Suspends B+ Rating on INR22.4MM Loan
LIKHITH HOTELS: CRISIL Suspends 'D' Rating on INR100MM Term Loan
MILESTONES ENGINEERING: ICRA Reaffirms B+ INR1.20cr Loan Rating
NAGESHWARI CERAMIC: ICRA Assigns B+ Rating to INR4.70cr Term Loan
NAVARATHINAM SPINNERS: CARE Rates INR5.56cr LT Loan at B+
NEXTRA TELESERVICES: ICRA Assigns 'C' Rating to INR15cr LT Loan
NILKANTH COLD: ICRA Suspends 'D' Rating on INR5.66cr Term Loan
NOOLI JEWELLERS: ICRA Assigns B+ Rating to INR12cr Cash Credit
PATEL TIMBER: CRISIL Cuts Rating on INR3MM Overdraft Loan to 'B'
PDRV ENTERPRISES: CRISIL Reaffirms B+ Rating on INR100M Cash Loan
PRECISION ELECTRONICS: CARE Raises Rating on INR4.80cr Loan to BB
PREET JNC: CRISIL Ups Rating on INR54.5MM Term Loan to B+
R C PLASTO: CRISIL Suspends B+ Rating on INR250MM Term Loan
R.S. STEEL: CRISIL Suspends 'B+' Rating on INR245MM Cash Credit
RAHUL COTTON: CARE Assigns 'B+' Rating to INR5cr LT Bank Loan
RASHMI STEELS: ICRA Assigns B+ Rating to INR15cr Cash Credit
RAVI METALLICS: ICRA Suspends 'D' Rating on INR14cr Term Loan
REGENERATIVE MEDICAL: Ind-Ra Assigns 'IND BB' LT Issuer Rating
SADAF STEEL: CRISIL Reaffirms B+ Rating on INR53.5MM Cash Loan
SANGHAVI EXPORTS: CARE Lowers Rating on INR544.50cr Loan to 'D'
SATYAMEV COT: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
SHREE BALAJI: ICRA Suspends B+/A4 Rating on INR20cr Bank Loan
SHREENATHJI GEMS: CRISIL Suspends B+ Rating on INR50MM Cash Loan
SHRI BIHARIJI: CARE Suspends 'D' Rating on INR63.72cr LT Loan
SHRI RAGHUNATH: CRISIL Suspends B- Rating on INR438.9MM Term Loan
SRI KODURI: ICRA Revises Rating on INR17cr Fund Based Loan to 'B'
SRI VENKATESWARA: ICRA Reaffirms B+ Rating on INR1.57cr Term Loan
TVS MOTOR: To Wind Up Assembly Operations in China
VANTAGE SPINNERS: CARE Raises Rating on INR68.75cr Loan to 'B+'
VIRAJ CONSTRUCTION: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
VISHAL CONDUIT: CARE Assigns B/A4 Rating to INR5cr Bank Loan
WALLMARK CERAMIC: ICRA Assigns B+ Rating to INR4.44cr Term Loan
- - - - -
=================
A U S T R A L I A
=================
ACOUSTIC INDUSTRIES: First Creditors' Meeting Set For July 10
-------------------------------------------------------------
Trajan John Kukulovski and Glenn Anthony Crisp of Jirsch
Sutherland were appointed as administrators of Acoustic Industries
Pty Ltd on July 1, 2015.
A first meeting of the creditors of the Company will be held at
Jirsch Sutherland, Melbourne, Level 12, 460 Lonsdale Street, in
Melbourne, on July 10, 2015, at 10:30 a.m.
FACAC PTY: Placed in Administration
-----------------------------------
Hugh Sutcliffe Martin -- hmartin@iweb.net.au -- of Bernardi Martin
was appointed as administrator of Facac Pty Limited on July 3,
2015.
The administrator may be reached at:
Bernardi Martin
195 Victoria Square
Adelaide SA 5000
Phone: 08 82127788
KIMBERLEY DIAMOND: First Creditors' Meeting Set For July 10
-----------------------------------------------------------
Sule Arnautovic, Christopher Michael Williamson and Trajan John
Kukulovski of Jirsch Sutherland were appointed as administrators
of Kimberley Diamond Company Pty Ltd on July 1, 2015.
A first meeting of the creditors of the Company will be held at
Jarrah and Banksia Rooms, Holiday Inn Perth City Centre, 778-788
Hay Street, in Perth, on July 10, 2015, at 10:30 a.m.
ROYELL PTY: First Creditors' Meeting Set For July 10
----------------------------------------------------
Sule Arnautovic, Trajan John Kukulovski and Chris Williamson of
Jirsch Sutherland were appointed administrators of Royell Pty Ltd
on July 1, 2015.
A first meeting of the creditors of the Company will be held at
Jarrah and Banksia Rooms, Holiday Inn Perth City Centre, 778-788
Hay Street, in Perth, on July 10, 2015, at 10:30 a.m.
SLIDESTREET PTY: Slips Into Liquidation
---------------------------------------
The West Australian reports that Slidestreet Pty Ltd, the company
behind Australia's first pop-up water slide, which made its debut
on St Georges Terrace last year, has collapsed owing nearly
AUD800,000.
"Operational challenges" have been blamed for the decision to
appoint liquidators to Slidestreet Pty Ltd, which was set up less
than a year ago to take a 300m water slide around the country but
ran into problems almost immediately in Perth, according to The
West Australian.
The report notes that a broken pump left people waiting for hours
and complaints on social media that people had to stand up to walk
down the slide led to a second WA event in Fremantle being
cancelled.
Slidestreet said at the time refunds would be offered and
alternative sites considered, the report relates.
Slidestreet's Facebook page suggests it went on to host events in
Adelaide, Sydney and Melbourne, the report discloses.
Slidestreet Directors Aaron Gill and Janelle Morse are also
contractors behind this year's Winterland ice-skating rink in
Perth, the report notes.
A report to creditors obtained by The Weekend West shows DCS
Advisory's Glenn Trinick -- glenn.trinick@dcsadvisory.com.au --
was appointed liquidator to Slidestreet on June 24, The West
Australian relays.
The report listed the company's assets as AUD36,677 and the amount
claimed by creditors as AUD784,429.
Creditors include St John Ambulance Australia and the City of
Melbourne.
According to the report to the creditors, Slide-street directors
"attributed the failure of the business to operational challenges
that impacted forecasted budgets," The West Australian says.
But, Mr. Trinick noted he had yet to conduct his probe into the
company and could not verify the claims, The West Australian
notes. The report also suggested concerns about the company were
raised in late March, The West Australian relays.
Mr. Gill said he had been advised neither he nor Ms. Morse could
speak on behalf of the company because it was now under control of
the liquidators, The West Australian notes.
The West Australian relays that Mr. Trinick said there were 99
known creditors but that number could change.
"I have not commenced my investigations," Mr. Trinick said. "But
based on my preliminary review it is highly unlikely there will be
a dividend to the creditors," Mr. Trinick added.
According to the creditors' report, Mr. Gill and Ms. Morse were
the company's sole directors and shareholders, The West Australian
relays.
But Mr. Trinick noted that Ms. Morse's appointment as director and
purchase of shares did not appear to have been lodged with the
Australian Securities and Investments Commission, The West
Australian adds.
A creditor's meeting will be held on July 10.
WENDY'S SUPA: Placed in Voluntary Administration
------------------------------------------------
Eloise Keating at SmartCompany reports that Wendy's Supa Sundaes,
the former master franchisor of the ice cream and hot dog chain,
has been placed in voluntary administration.
Wendy's franchisees were notified of the move by the chain's head
office in a letter on July 1, SmartCompany says.
According to SmartCompany, Martin Lewis and Tim Mableson from
Ferrier Hodgson has been appointed to manage the voluntary
administration and the first meeting of creditors will be held in
Adelaide on July 14.
Wendy's stores in Australia have been operated by Singapore-based
Supatreats Australia Pty Ltd since 2014, and in the letter seen by
SmartCompany, the company told franchisees the appointment of
administrators would not affect their stores.
"The decision to place the company into voluntary administration
was taken because the company was unable to resolve a range of
legacy issues which arose under previous management and ownership
and because it had recently come to the attention of the current
management of the company that its business has been severely
compromised and the integrity of the Wendy's brand was under
threat," the company said in the letter cited by SmartCompany.
Wendy's head office told franchisees their franchise agreements
will continue with Supatreats Australia, the report notes. The
company said it has appointed MiLease to help franchisees manage
their leases with respective landlords, says SmartCompany.
However, according to the Daily Telegraph, a small number of
Wendy's stores will be forced to close as they have not yet
reached an agreement with Supatreats to continue to trade under
the Wendy's brand, SmartCompany relates.
According to SmartCompany, administrator Martin Lewis said in a
statement Wendy's Supa Sundaes is no longer licensed to use Wendys
intellectual property and will therefore cease to operate.
In the same statement, Ferrier Hodgson said it has been advised
Supatreats Australia "will be working with franchisees and
landlords to restructure the business and resolve the current
situation," SmartCompany adds.
Wendy's Supa Sundaes was established in South Australia in 1979.
The appointment of administrators to the company comes after a
period of ongoing tensions between the company and its
franchisees, many of whom have spoken to SmartCompany about the
financial trouble their businesses have encountered.
As recently as last week, one Wendy's franchisee told SmartCompany
Wendy's had failed in its duty of care, one day after being locked
out of his store by his shopping centre landlord.
As SmartCompany previously reported, 116 Wendy's stores have
either collapsed or been taken over by management over the past
eight years. By late 2014, Victorian stores were being advertised
with an asking price as low as AUD59,000.
Former Wendy's franchisees have told SmartCompany they had had
store locks changed during a dispute with the company and received
letters stating their contracts with the company would not be
renewed after speaking out. Another franchisee claimed Wendy's
repossessed all his stock, fittings and equipment without paying
him any compensation after failing to renegotiate a lease,
SmartCompany relays.
The incidents appear to have taken place between 2006 and 2014,
when Wendy's was owned by Malaysian private equity group Navis
Capital and before Supatreats purchased the business, the report
notes.
=========
C H I N A
=========
COUNTRY GARDEN: Moody's Hikes Corporate Family Ratings to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has upgraded Country Garden Holdings
Company Limited's corporate family and senior unsecured debt
ratings to Ba1 from Ba2.
The ratings outlook is stable.
The rating actions conclude Moody's ratings review of the company,
initiated on 2 April 2015.
RATINGS RATIONALE
"The upgrade reflects Country Garden's strengths in funding and
financial management," says Franco Leung, a Moody's Vice President
and Senior Analyst.
Country Garden has taken actions to improve its funding stability
by raising offshore term funding. For example, it issued offshore
5-year bonds of $800 million in 2014 and obtained a 4-year
syndicated bank loan for HKD4.5 billion in 2H 2014. These
financing activities have lengthened the average tenure of its
debt portfolio, and lowered the company's weighted average
borrowing cost to 8.16% in 2014 from 8.54% in 2013.
In addition, the company has raised equity in the past 12 months.
It issued new equity shares to Ping An Insurance (Group) Company
of China, Ltd. (unrated) in April 2015 for about HKD6.3 billion,
and completed a rights issue in 2014, garnering net proceeds of
around HKD3.18 billion.
Moody's expects that Country Garden will continue to improve its
debt capital structure, and lower its average borrowing costs.
Accordingly, its credit metrics should remain strong over the next
12-18 months. In particular, its adjusted EBIT coverage of
interest should register around 3.8x-4.0x and revenue to debt
should be at 120%-130%. Such results position the company at the
high end of the Ba rating level.
"The ratings upgrade also considers Country Garden's improved
business planning," says Leung who is also the Lead Analyst for
Country Garden.
Country Garden targets to grow its contracted sales in 2015 and
2016 at rates lower than those seen in 2013 and 2014. The lower
sales growth reduces the company's demand for new debt, and
demonstrates a prudent approach to business planning, given that
China economy is expected to grow at a slower rate over the
next 12 to 18 months.
The company reported a 25.4% year-on-year decline in contracted
sales for the first five months of 2015 to RMB36.8 billion.
Notwithstanding Country Garden's aim to lower the rate of its
sales growth over the next 12-18 months; the company's scale and
strong sales execution position it at the high end of the Ba
rating level.
Country Garden's track record of generating sales growth through
the cycles is strong. It registered positive contracted sales
growth from 2007-2014; a period in which two downcycles occurred,
the first in 2008 and the second in 2012.
The company's scale -- as measured by contracted sales -- is
large, at around RMB128 billion at end-2014. Its large scale
reflects its strength as a nationwide operator, and ability to
reduce the impact from regional economic and regulatory changes.
Country Garden's Ba1 corporate family rating reflects its good
experience in suburban property development in Guangdong Province,
as well as in lower tier cities. The rating also considers its
competitive business model that offers attractively priced
housing, with value-added services in integrated townships to meet
the needs of China's growing middle-class.
In addition, its fast turnover model has also resulted in a strong
liquidity position for the company.
On the other hand the rating is constrained by the challenge that
the company faces in lower tier cities, where the supply of
properties exceeds demand.
The company is also exposed to profit margin pressure in its mass-
market portfolio, and to high inventory levels in its target
markets.
Nevertheless, Country Garden's liquidity profile is strong. Its
cash holdings -- including restricted cash -- of RMB27.2 billion
at end-2014 well covered its short term debt of RMB14.9 billion.
The stable ratings outlook reflects Moody's expectation that
Country Garden will maintain its strong sales execution, current
gross profit margins and debt leverage, through prudent financial
management and cautious business planning.
The company's ratings could be subject to upgrade pressure if it :
(1) maintains a strong liquidity profile, such that cash to short
term debt exceeds 1.5x -- 2.0x; and (2) maintains strong credit
metrics, such that EBIT coverage of interest stays consistently in
excess of 5x and revenue/debt exceeds 120%-130%.
On the other hand, downgrade ratings pressure could arise if the
company's : (1) sales and liquidity position weaken, such that
cash to short term debt falls below 1.25x; (2) gross profit
margins weaken below 20%; or (3) debt leverage deteriorates, as
evidenced by revenue/debt below 110% or EBIT coverage of interest
below 3.5x.
Country Garden Holdings Company Limited, founded in 1997 and
listed on the Hong Kong Stock Exchange, is a leading Chinese
integrated property developer. At end-2014, its land bank totaled
a sizeable 77.56 million square meters in attributable gross floor
area.
RENHE COMMERCIAL: Proposed Buyout No Impact on Moody's Caa1 CFR
---------------------------------------------------------------
Moody's Investors Service says that Renhe Commercial Holdings
Company Limited's proposed acquisition of Yield Smart Limited
(unrated), a wholly owned subsidiary of Shouguang Dili Agri-
Products Group Company Limited (unrated), has no immediate rating
impact on its Caa1 corporate family and senior unsecured ratings.
The ratings outlook remains negative.
On June 28, 2015, Renhe provided greater clarity on the
acquisition and ongoing reorganization of Yield Smart, an operator
of eight agriculture produce wholesale markets in six cities in
China.
The acquisition agreement was originally signed on 9 June 2015. As
part of the acquisition, Renhe will obtain rights to operate the
markets for 20 years through a Framework Lease Agreement with
Shouguang Dili, but will not take control of the underlying
investment properties.
The total cost of the acquisition was HKD6.5 billion, consisting
of share issuance of HKD5.02 billion; and assumption of $191
million of debt.
The acquisition is currently pending shareholders' and regulators'
approvals.
"Renhe's negative outlook continues to reflect the high
refinancing risk for its bond due in March 2016," says Dylan Yeo,
a Moody's analyst.
Renhe's liquidity profile remains weak following the repayment of
its $79 million bond in May this year, due to the high refinancing
risk for its $161 million bond that matures in March 2016.
The projected cash flow from the acquisition will not materially
improve Renhe's liquidity position. Moreover, the company's rights
issuance in January 2015 to address its previous bond maturity and
the share issuance for this acquisition have reduced the company's
ability to further tap the equity market for liquidity.
Moody's expects Renhe's EBIT/interest coverage to improve towards
0.5-0.7x in the next 24 months, based on the aggregate net profit
guarantee on Yield Smart. This aggregate guarantee of not less
than RMB1.1 billion is provided by Shouguang Dili to Renhe for
2015 and 2016.
"The acquisition also gives rise to counterparty risks with a
related party," says Yeo.
The acquisition is a related party transaction as Shouguang Dili
is 67.86% owned by Ms. Zhang Xingmei, who is the spouse of Mr.
Dai, the chairman of Renhe.
Renhe is exposed to counterparty risk due to Shouguang Dili's
profit guarantee of Yield Smart for 2015 and 2016.
In addition, Yield Smart's rights to operate at the eight markets,
under the Framework Lease Agreement with Shouguang Dili, could be
affected in the event of a change in ownership of the underlying
investment properties.
Shouguang Dili retains ownership of the underlying investment
properties after the proposed transaction and had pledged some of
these assets for bank borrowings.
Renhe specializes in the development and operation of underground
shopping centers that can also function as civilian air defense
shelters. The projects are built below city commercial centers and
transportation hubs, and are free of land-use premium fees.
However, Renhe does not own any of the assets.
As of December 2014, the company operated and managed 22 malls in
12 Chinese cities. The company was listed on the Hong Kong Stock
Exchange in October 2008. Mr Dai Yongge, the chairman and CEO,
owned a 51.38% stake as at June 2015.
SUNSHINE 100: Fitch Revises Outlook to Pos. & Affirms 'B-' IDR
--------------------------------------------------------------
Fitch Ratings has revised Sunshine 100 China Holdings Ltd's
Outlook to Positive from Stable, and affirmed its Long-Term
Foreign Currency and Local Currency Issuer Default Ratings at
'B-'. The Chinese homebuilder's senior unsecured rating and the
ratings on its USD215m 12.75% senior notes due 2017 have also been
affirmed at 'B-' as well as its Recovery Rating at 'RR4'.
The Positive Outlook takes into account of Sunshine's liquidity
improvement and management execution in sales expansion. Sunshine
is likely to benefit from the strategic cooperation with EBA
Investments (Advisory) Limited (EBA) and from the looser credit
and tax policies for China's property market in 2015.
KEY RATING DRIVERS
Relieved Liquidity Position: Sunshine's relatively tight liquidity
position (CNY8bn short-term borrowings vs. CNY3.6 bil. cash by
end 2014) has been much relieved by its diversified funding
sources since 4Q14. This includes the company's USD215 mil.
senior notes, HKD1.3 bil. equity placement, and the potential
CNY5bn financial support from EBA. Sunshine's improving liquidity
management provides more flexibility for future business expansion
and helps to lower interest costs.
Improving Sales Help Deleverage: Fitch expects Sunshine's improved
sales and a high cash collection rate to help to lower its
leverage (net debt/adjusted inventory) further to the mid-forties
percentage range in the next 12 months from 50% in 2014. For the
first five months of 2015, Sunshine bagged CNY2.6 bil. contracted
sales (+38% yoy), vs. CNY6.7 bil. in 2014. Commercial projects
may contribute more than 30% of sales in 2015 (2014: 16%), with
high gross profit margins of over 50%.
Strategic Cooperation with EBA: EBA is the sole exclusive real
estate investment platform under China Everbright Limited. Under
the cooperation framework agreement, EBA will assist Sunshine to
formulate a series of development strategies and further promote
its financing ability, business scale and rate of capital return
in the future, together with a total amount of CNY5bn in financing
support for future project development.
Adequate Land Bank: Sunshine has a large land-bank of 10.6 mil.
sqm at end-2014, 13 times the contracted sales gross floor area
(GFA) it had in 2014. The company benefits from a low average
land cost of around CNY900/sqm (12% of the selling price). In
Fitch's opinion, Sunshine is under no pressure to replenish land
at high market prices and has no intention to acquire new land for
residential projects given that their land tenders tend to be
highly competitive.
Slow Turnover Rate: Sunshine's rating is constrained by its slow
inventory turnover (measured by contracted sales divided by total
debt) - which has stayed at 0.4x-0.5x in the past four years.
This is low compared to other B-rated peers. Many of the projects
were bought more than five years ago and were large in GFA.
Sunshine had no urgency to sell them off quickly in the past few
years since the land cost was cheap. Sunshine geared up its
construction pace in 2014 after cutting down on land acquisitions
to channel more cash flow into construction activities.
KEY ASSUMPTIONS
Slow-down in land acquisition pace as reflected by the new land
GFA to be 0.8x times annual contracted sales GFA
Contracted sales of CNY9.4 bul. in 2015 and CNY11.4 bil. in 2016
Gross profit margin of property development is expected to be
27.5% in 2015 and 28% in 2016
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to positive rating action (upgrade to B)
include:
Contracted sales/total debt sustained above 0.6x
Contracted sales above CNY10bn in 2015
Net debt/adj. inventory sustained below 50%
Negative: Future developments that may, individually or
collectively, lead to negative rating action (revise Outlook to
Stable) include:
Failure to achieve the above factors.
UTSTARCOM HOLDINGS: Files Annual Report of iTV Media
----------------------------------------------------
UTStarcom Holdings Corp. has amended its annual report on Form
20-F for the fiscal year ended Dec. 31, 2014, to include the
consolidated financial statements of iTV Media Inc. for the fiscal
year ended Dec. 31, 2014, and 2013.
iTV Media reported a net loss of RMB 95.1 million on RMB 45.8
million of revenues for the year ended Dec. 31, 2014, compared to
a net loss of RMB 112.6 million on RMB 12.3 million of revenues
for the year ended Dec. 31, 2013.
As of Dec. 31, 2014, iTV Media had RMB 90.4 million in total
assets, RMB 295.5 million in total liabilities, RMB 156.5 million
in total mandatorily redeemable convertible preferred shares and a
RMB 361.6 million total shareholders' deficit.
A full-text copy of the ITV Media's Annual Report is available at:
http://is.gd/heyqDh
About UTStarcom, Inc.
UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a
global leader in IP-based, end-to-end networking solutions and
international service and support. The Company sells its
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables
its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. The Company's
headquarters are currently in Alameda, California, with its
research and design operations primarily in China.
UTStarcom reported a net loss of $30.3 million in 2014, a net loss
of $22.7 million in 2013 and a net loss of $34.4 million in 2012.
================
H O N G K O N G
================
NORD ANGLIA: Moody's Rates CHF200MM Sr. Sec. Notes 'B1'
-------------------------------------------------------
Moody's Investors Service assigned a definitive B1 rating to Nord
Anglia Education, Inc's (NAE, B1 Stable) CHF200 million senior
secured notes.
At the same time, Moody's has affirmed the ratings on NAE's senior
secured term loan B and revolving credit facility.
The outlook for the ratings is stable.
RATINGS RATIONALE
Moody's definitive rating on the bonds obligation follows NAE's
completion of its CHF200 million note issuance, the final terms
and conditions of which are consistent with Moody's expectations.
The credit facility and the bonds are issued by Nord Anglia
Education Finance LLC, guaranteed by NAE, and rank pari passu and
pro rata with each other.
The senior secured term loan B was upsized to $900 million from
$860 million, while the senior secured bond was downsized from
CHF235 million to CHF200 million, resulting in NAE's overall
leverage remaining consistent with previous expectations.
The provisional rating was assigned on 12 June, and Moody's
ratings rationale was set out in a press release published on the
same day.
NAE used the net proceeds from the bond and upsized credit
facility to fund the acquisition of six schools from Meritas
Schools Holdings LLC (B3 stable).
Nord Anglia Education, Inc. is headquartered in Hong Kong and
operates 41 international premium schools in Asia, Europe, the
Middle East, and North America, with over 32,000 students ranging
in level from pre-school through to secondary school. NAE also
provides outsourced education and training contracts with
governments and curriculum products through its Learning Services
division. Pro forma for the acquisition of the Meritas schools,
NAE generated annual revenue of about $810 million as of 1 May
2015.
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I N D I A
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A.A. SNACK: ICRA Assigns B+ Rating to INR0.25cr LT Loan
-------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR0.25
crore fund based facility of A.A. Snack. ICRA has also assigned a
short term rating of [ICRA]A4 to the INR5.25 crore fund based
facilities of A.A. Snack. ICRA has also assigned a long
term/short-term rating of [ICRA]B+/[ICRA]A4 to the INR4.50 crore
proposed facilities of A.A. Snack.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund
Based Facilities 0.25 [ICRA]B+ assigned
Short Term Fund
Based Facilities 5.25 [ICRA]A4 assigned
Long Term/Short Term
Proposed facility 4.50 [ICRA]B+/[ICRA]A4 assigned
The ratings assigned takes into account the extensive experience
of the promoters in cashew processing business spanning over three
decades, the firm being a part of the established A.A. Nutts group
and the business tie ups the group has established with customers
around the world which enables the group to enjoy economies of
scale in its purchases. However, the ratings are constrained by
small scale of operations of the firm, its limited pricing
flexibility, and high working capital intensity. The pricing
flexibility of the firm is limited given the highly fragmented
nature of the industry with elevated competition and low product
differentiation/value addition, resulting in the firm's margins
being susceptible to increases in input prices, particularly raw
material costs. These apart, the rating also takes into
consideration the stretched capital structure and cash flows, and
the resultant weak debt-protection indicators.
AA Snack is a partnership firm engaged in the business of
processing of RCNs and exporting of cashew kernels. In addition to
this the company also engage in high seas RCN sales. The concern
is promoted by Mr. M A Anzar, who has over three decades of
experience in processing and marketing of cashew kernels. He is
also one of the directors of Cashew Export Promotion Council of
India (CEPCI). The company currently does its procurement of raw
cashew nuts from Africa and Indonesia. High quality raw nuts are
also procured from Kerala and Karnataka. The processed nuts are
then exported to USA, Middle East and Singapore. ACE's registered
office is located in Kilikolloor, Kollam and their factory, with
an installed capacity of 1,400 MT RCNs, is located in Kuttichira,
at a distance of 5 Kms from the office.
Recent results
AA Snack recorded a net profit of INR0.18 crore on an operating
income of INR20.7 crore during 2014-15 as per the provisional
financial statements; as against a net profit of INR0.08 crore on
an operating income of INR14.7 crore during 2013-14 as per the
audited financial statements.
ABC CERAMIC: CARE Assigns 'B' Rating to INR4.0cr LT Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of ABC Ceramic.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4.00 CARE B Assigned
Short term Bank Facilities 1.75 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of ABC Ceramic (ABC)
are constrained on account of its nascent stage of operations
coupled with risk associated with stabilisation of its plant. The
ratings are further constrained on account of its partnership
nature of constitution, susceptibility of its profit margins to
volatility in raw material and natural gas prices coupled with its
presence in competitive ceramic industry whose demand is linked to
the cyclical real estate sector.
The ratings, however, derive benefits from experienced partners
with good business network and strategic location benefits such as
easy access to raw material, fuel and labour.
The early stabilisation of operations of ABC and its ability to
achieve the envisaged level of sales & profitability are the key
rating sensitivities.
Morbi-based (Gujarat) ABC, established in 2013, is a partnership
firmengaged in the manufacturing of ceramic wall glazed tiles used
in construction and real estate projects. The installed capacity
of the plant is 30,450 metric tonnes per annum (MTPA) or 21 lakh
boxes per annum of 12" x 24" tiles as on March 31, 2015. The firm
is promoted by Mr Mansukhbhai Prabhubhai Adroja, Mr Meet
Mansukhbhai Adroja, Mrs Hiraben Mansukhbhai Adroja, Mr Rugnathbhai
Prabhubhai Adroja, Mrs Kshama Jatinbhai Adroja, Mr Pravinbhai
Harjibhai Sherasia, Mr Hitesh Harjibhai Sershiya, Mr Vivekkumar
Vanrajbhai Sherasiya and Mr Divyesh Balubhai Kadivar. The plant
started commercial production on January 1, 2015. The total cost
of the project was INR12.60 crore which was funded through
partners' capital of INR4.70 crore, term loan of INR7.34 crore and
unsecured loans of INR0.56 crore.
The partners also manage other entities, viz, Pulsar Tiles
(Pulsar), which is engaged in the manufacturing of digital and
vitrified tiles, Surya Oil & Agro Industries, which is engaged in
the manufacturing of edible refined oil and Suresh Industries.
As per the provisional results for FY15 (refers to the period
April 1 to March 31), the firm achieved total operating income
(TOI) of INR1.18 crore.
AGARWAL SPONGE: CRISIL Suspends B- Rating on INR550MM LT Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Agarwal Sponge and Energy Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4
Cash Credit 395 CRISIL B-/Stable
Letter of Credit 420 CRISIL A4
Long Term Loan 550 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by ALO
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ALO is yet to
provide adequate information to enable CRISIL to assess ALO'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'
ASEPL was incorporated in 2004 and promoted by Mr. Anirudh Pershad
Agarwal, Mr. Satish Kumar Agarwal, and Mr. Murarilal Agarwal. The
company is involved in the manufacture of sponge iron.
AYSHA CASHEW: ICRA Assigns B+ Rating to INR0.50cr LT Loan
---------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR0.50
crore fund based facility of Aysha Cashew Exports. ICRA has also
assigned a short term rating of [ICRA]A4 to the INR6.50 crore fund
based facilities of Aysha Cashew Exports. ICRA has also assigned a
long term/short-term rating of [ICRA]B+/[ICRA]A4 to the INR3.00
crore proposed facilities of Aysha Cashew Exports.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund
Based Facilities 0.50 [ICRA]B+ assigned
Short Term Fund
Based Facilities 6.50 [ICRA]A4 assigned
Long Term/Short Term
Proposed facility 3.00 [ICRA]B+/[ICRA]A4 assigned
The ratings assigned takes into account the extensive experience
of the promoters in cashew processing business spanning over three
decades, the firm being a part of the established A.A. Nutts group
and the business tie ups the group has established with customers
around the world which enables the group to enjoy economies of
scale in its purchases. However, the ratings are constrained by
small scale of operations of the firm, its limited pricing
flexibility, and high working capital intensity. The pricing
flexibility of the firm is limited given the highly fragmented
nature of the industry with elevated competition and low product
differentiation/ value addition, resulting in the firm's margins
being susceptible to increases in input prices, particularly raw
material costs. These apart, the rating also takes into
consideration the stretched capital structure and cash flows, and
the resultant weak debt-protection indicators.
Aysha Cashew Exports is a proprietorship concern founded in 2013.
Mr. N Mohammed Abbas is the proprietor of the firm. Aysha Cashew
Exports is the part of the Alpha Group which is engaged in trading
cashews since 1993. The firm is in the business of processing raw
cashew nuts (RCNs) and trading of cashew kernels. The company
currently does its procurement of raw cashew nuts from Africa.
High quality raw nuts are also procured from Kerala and Karnataka.
The processed nuts are then exported to Europe, USA and Middle
East. The firm's registered office is located in Kilikolloor,
Kollam and their factory, with an installed capacity of 2,100 MT
of RCNs, is located in Navaikulam, at a distance of 20 Kms from
the office.
Recent results
Aysha Cashew Exports recorded a net profit of INR0.26 crore on an
operating income of INR33.8 crore during 2014-15 as per the
provisional financial statements; as against a net profit of
INR0.10 crore on an operating income of INR19.6 crore during 2013-
14 as per the audited financial statements.
BARANI HYDRAULICS: CRISIL Reaffirms B+ Rating on INR107.5MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Barani Hydraulics India
Pvt Ltd (BHIPL) continue to reflect BHIPL's modest scale of
operations, and average financial risk profile marked by a modest
net worth and gearing, and average debt protection metrics. These
rating weaknesses are partially offset by the extensive industry
experience of BHIPL's promoter and the company's established
relationships with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 21 CRISIL A4 (Assigned)
Cash Credit 107.5 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 19 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that BHIPL will continue to benefit over the
medium term from its promoter's extensive industry experience and
its established relationships with customers. The outlook may be
revised to 'Positive' if the company registers a significant and
sustained increase in its revenue and cash accruals, while it
improves its working capital cycle and capital structure.
Conversely, the outlook may be revised to 'Negative' if BHIPL
generates lower-than-expected accruals or if its working capital
cycle stretches, leading to pressure on its financial risk
profile, particularly its liquidity.
BHIPL was originally set up as a proprietorship concern in 1988 by
Mr. T K Karuppanaswamy; the firm was reconstituted as a private
limited company in 2004. The Coimbatore (Tamil Nadu)-based company
manufactures hydraulic presses, diaphragms, and mounting brackets.
BHARAT DEEP: CRISIL Suspends B- Rating on INR50MM Cash Credit
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Bharat
Deep Traders (BDT).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by BDT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BDT is yet to
provide adequate information to enable CRISIL to assess BDT'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'.
BDT, set up as a partnership firm in 1992, is based in Chennai
(Tamil Nadu). The firm trades in iron and steel structural
products such as plates, thermo-mechanically treated bars and
angles. The day-to-day operations of the company are managed by
its partners Mr. Bharat Purohit and his father Mr. Gopal Purohit.
BRAINER IMPEX: CRISIL Suspends 'B' Rating on INR547.5MM Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Brainer
Impex Limited (BIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 547.5 CRISIL B/Stable
Line of Credit 85 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 367.5 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by BIL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BIL is yet to
provide adequate information to enable CRISIL to assess BIL'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'
BIL was originally incorporated as Brainer Financial Technologies
Ltd on March 23, 2010, in Mumbai, by Mr. Malay Biswas and Mr.
Pankaj Yadav; it was renamed as BIL in March 2012. The company
trades in various products ranging from agro-commodities and milk
products to metal scrap.
CONCORD HOSPITALITY: CRISIL Suspends 'D' Rating on INR600MM Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Concord
Hospitality Private Limited (CHPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL D
Proposed Long Term
Bank Loan Facility 150 CRISIL D
Term Loan 600 CRISIL D
The suspension of ratings is on account of non-cooperation by CHPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CHPL is yet to
provide adequate information to enable CRISIL to assess CHPL'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 2006, CHPL is engaged in real estate trading and
development as well as in the hospitality business. It has
completed Radisson hotel in Amritsar (Punjab) under franchise from
Carlson Hospitality. CHPL has also developed a commercial complex
near the hotel site in association with Ansal Property and
Infrastructure Ltd. Its key promoter-director Mr. Harpinder Singh
Gill looks after its day-to-day operations.
DIGANTA MUDRANA: CARE Assigns 'B' Rating to INR3.82cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' rating to the bank facilities
of Diganta Mudrana Limtied.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 3.82 CARE B Assigned
Short-term Bank Facilities 3.73 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Diganta Mudrana
Limited (DML) are constrained by its small scale of operations,
weak financial risk profile marked by decline in income levels in
FY14 (refers to the period April 1 to March 31), losses in FY13
and FY14, leveraged capital structure and weak debt service
indicators, working capital intensive nature of business, highly
fragmented nature of the industry and susceptibility of profit
margins to fluctuations in raw material prices. The ratings,
however, derive strength from the experienced promoters and
management for more than two decades in the printing industry and
improving operational efficiency by de-bottlenecking the
production facilities.
Ability of the company to increase its scale of operations,
improve its profitability margins and effectively manage the
working capital requirement are the key rating sensitivities.
Mangalore-based(Karnataka), Digantha Mudrana Limited (DML) was
incorporated on December 21, 1988, by Mr Vasudeva Kamath, Dr
Madhava Bhandary and Mr Aravinda G Bijoor for setting up a
printing unit with an installed capacity of 1,00,000 impressions
per hour. The main objective of the company is to carry out the
business of printing newspapers, text books, broachers, posters,
souvenirs, business stationery like calendars and dairies,
booklets etc.
The company has its servicing facility located at Mangalore and
Shimoga, Karnataka. The newspapers that company prints at its
facilities include 'Hosadigantha', 'Jayakirana' and 'Suddi Sullia'
which are Kannada daily newspapers whose agreements are renewed
every year.
Apart from printing newpapers, DML is also engaged in printing
text books for Karnataka Text Book Society (KTBS) & Jai Bharath
Prakashana Text Books and prints book works for Vinyas and other
publications. The company also undertakes lamination, plate making
and binding works.
During FY14, DML reported a net loss of INR0.39 crore on a total
operating income of INR7.66 crore as against a loss of INR0.37
crore on a total operating income of INR9.68 crore in FY13.
DOLLFINE DEVELOPERS: CRISIL Assigns B+ Rating to INR34MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of DollFine Developers (DD).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 30.2 CRISIL B+/Stable
Long Term Loan 34 CRISIL B+/Stable
Bank Guarantee 1.8 CRISIL A4
Cash Credit 34 CRISIL B+/Stable
The ratings reflect DD's susceptibility to risks related to
completion and saleability of its ongoing real estate residential
projects in Hyderabad, and to cyclicality in the Indian real
estate industry. These rating weaknesses are partially offset by
the extensive experience and established track record of DD's
promoters in the residential real estate development business.
Outlook: Stable
CRISIL believes that DD will continue to benefit over the medium
term from its promoters' extensive experience and established
track record in the real estate industry in Hyderabad. The outlook
may be revised to 'Positive' if the firm completes and sells its
projects sooner than expected, leading to an improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of delays in project completion or in receipt
of advances from customers, or if the firm undertakes a large
debt-funded project, weakening its financial risk profile.
Set up as a partnership entity, DD is involved in the construction
and sale of residential apartments in Hyderabad. The firm is
promoted by Mr. G. Babu Rao along with his friends and family.
ENN AAR: CRISIL Suspends 'B-' Rating on INR30MM Cash Credit
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Enn Aar
Modern Rice Mill (EAMRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B-/Stable
Term Loan 29 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by
EAMRM with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EAMRM is yet to
provide adequate information to enable CRISIL to assess EAMRM'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'
EAMRM is a partnership firm set up in 2011 by Guwahati (Assam)-
based Mr. Sumit Sovasaria and his wife Mrs. Shilpa Sovasaria. The
firm processes non-basmati raw and parboiled rice. Its
manufacturing facility has commenced commercial operations in July
2012. The daily operations of the firm are looked after by the
managing partner Mr. Sumit Sovasaria.
GREENCROP INTERNATIONAL: CRISIL Cuts Rating on INR52.5M Loan to B
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Greencrop International Pvt Ltd (Greencrop) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 52.5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Long Term Loan 36.7 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 10.8 CRISIL B/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
The rating downgrade reflects the deterioration in Greencrop's
business and financial risk profiles on account of decline in the
company's topline and pressure on its profitability, resulting in
low cash accruals. The company's revenue declined by about 21 per
cent year-on-year to around INR289 million in 2014-15 (refers to
financial year, April 1 to March 31), from INR365 million in the
previous year. Its operating margin is also under pressure on
account of subdued industry demand and exposure to intense
competition. Furthermore, Greencrop's operations remain working
capital intensive, with gross current assets of about 175 days as
on March 31, 2015, mainly on account of stretched receivables with
debtors of 100 days as on March 31, 2015. The decline in revenue
and profitability, along with large working capital requirements,
has resulted in low net cash accruals for Greencrop, thereby
impacting its financial risk profile, particularly its liquidity.
Furthermore, the company's term loan repayments are to commence
from June 2015, which is expected to exert further pressure on its
credit risk profile. Over the medium term, Greencrop's annual cash
accruals are expected to tightly match its debt obligations;
timely funding support from promoters in case of exigency will
remain a key rating sensitivity factor.
The rating reflects Greencrop's modest scale of operations, low
operating margin, and its large working capital requirements. The
rating also factors in the company's below-average financial risk
profile, marked by small net worth, moderate gearing, and modest
debt protection metrics. These rating weaknesses are partially
offset by the benefits that Greencrop derives from its promoters'
extensive experience in the agricultural chemicals industry and
its wide distribution network.
Outlook: Stable
CRISIL believes that Greencrop will continue to benefit over the
medium term from its promoters' extensive industry experience and
its wide distribution network. The outlook may be revised to
'Positive' in case of substantial improvement in the company's
scale of operations and profitability margins, resulting in large
cash accruals. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in the company's
profitability, or deterioration in its capital structure on
account of large working capital requirements or debt-funded
capital expenditure.
Greencrop, set up in 2001, manufactures pesticides and micro-
nutrient fertilisers. It is based in Pune (Maharashtra), with
distribution offices in Hyderabad, Bengaluru, Coimbatore (Tamil
Nadu), Raipur, Indore (Madhya Pradesh), Akola (Maharashtra), and
Ahmedabad (Gujarat). It is promoted by Mr. Sharad Sawant and Mr.
Popatrao Deshmukh, who have been engaged in the agricultural
chemicals industry for around four decades.
GULZAR EDUCATIONAL: Ind-Ra Rates INR358.4MM Facility 'IND BB-'
--------------------------------------------------------------
India Ratings and Research has assigned Gulzar Educational &
Charitable Trust's (GECT) INR358.4 mil. term loans facility and
INR41.6 mil. fund-based working capital facility an 'IND BB-'
rating with a Stable Outlook.
KEY RATING DRIVERS
Strained Liquidity: Available funds (cash and unrestricted
investments) declined to INR10.68 mil. in FY14 from INR18.19 mil.
in FY11. Also, its cover to operating expenditure (FY14: 10.81%)
and debt (FY14: 1.90%) is limited. The collection period of the
society persistently rose to 32 days in FY14 from 8 days in FY11.
Fee receivables are rising over the years as Gulzar Group of
Institutes (GGI) has enrolled itself with various scholarship
schemes meant for scheduled castes, scheduled tribes and other
minority categories.
Weak Demand Flexibility: GECT has a high acceptance rate (FY14:
80.04%), which limits demand flexibility. The growth of
applications received declined 4.21% yoy in FY15. Also, capacity
utilisation was perpetually low over FY11-FY15; 59.85% in FY15.
However, the introduction of B.Ed. course in FY17 with an initial
intake of 60 seats might have a favorable impact on capacity
utilization.
Strong Operating Margin: GECT's operating margins improved to
50.85% in FY14 from 38.81% in FY11. It was mainly on the back of
higher growth in tuition fee income than in staff cost and other
operating expenses. Tuition fee income with an average
contribution of 83.79% to the total revenue receipts over FY11-
FY14 grew at a CAGR of 60.84%. Whereas other operating expense
with an average contribution of 33.72% over FY11-FY14 was the
highest contributor to the total expenses; it grew at a CAGR of
48.67%.
Declining Debt Burden: Debt burden (debt/current balance before
interest and depreciation (CBBID)) reduced considerably to 6x in
FY14 from 13.83x in FY11 on the back of higher CBBID. The
society's total debt comprises secured loan, fund-based working
capital facility and unsecured loans. The debt service coverage
ratio was consistently over 1x over FY11-FY14 despite an increase
in the amount of principal repayments due to a commensurate rise
in CBBID.
RATING SENSITIVITIES
Positive: A positive rating action could result from improvements
in the liquidity position and debt metrics driven by significant
head count growth.
Negative: Any unexpected fall in student demand in conjunction
with a disproportionate increase in the debt resulting in
deterioration in the leverage ratios could trigger a negative
rating action.
PROFILE
Gulzar Group of Institutes (GGI) under the aegis of GECT started
Gulzar Institute of Engineering and Technology and Gulzar School
of Management in FY10 and Gulzar College of Engineering in FY12.
GGI offers diploma and B.Tech in various engineering streams,
graduate and postgraduate courses in business administration and
computer application. Spread across an area of 16 acres, it is
located on the National Highway 1 near Khanna in Ludhiana
district.
H. B. RAVIKUMAR: CARE Assigns 'B+' Rating to INR4cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE B+/CARE A4' ratings to the bank facilities of
H. B. Ravikumar.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4 CARE B+ Assigned
Short-term Bank Facilities 4 CARE A4 Assigned
The ratings assigned by CARE are based on the capital deployed by
the proprietor and the financial strength of the firm at
present. The ratings may undergo change in case of withdrawal of
capital or the unsecured loans brought in by the proprietor in
addition to the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of H. B. Ravikumar
(HBR) are primarily constrained by its small scale of operations
in a highly competitive and fragmented civil construction industry
characterized by low entry barriers and presence of many
unorganized players. The ratings are also constrained by the
susceptibility of profits to volatility in raw material costs and
absence of price escalation clause, customer and geographic
concentration risk with respect to the order book, working
capital-intensive nature of business and limited financial
flexibility owing to its constitution as a proprietorship concern.
The ratings are, however, underpinned by the experience of the
promoter in the civil construction industry for around two
decades, moderate order book position, increase in the total
operating income in FY15 (refers to the period April 1 to
March 31), moderately leveraged capital structure and debt
coverage indicators.
The ability of the firm to diversify its order book, increase its
scale of operations in light of stiff competition, maintain
profitability amidst volatile raw material prices are the key
rating sensitivities.
Mysore-based H. B. Ravikumar (HBR), proprietary concern was
incorporated by Mr. H. B. Ravikumar in the year 1990. HBR is
registered as a Class I contractor with Public Works Department
(PWD) of Government of Karnataka and secures all its contracts
through open bidding process. HBR is primarily executing the
contract works for government departments. The entity is primarily
in the business of bidding for road projects involving civil works
such as construction of roads including state highways. HBR had
orders in hand worth of INR30 crore as on
May 31, 2015.
During FY15 (Provisional), HBR reported a PAT of INR1.12 crore on
a total operating income of INR30.86 crore as against a PAT of
INR0.39 crore on a total operating income of INR13.39 crore in
FY14.
ICON SOLAR: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Icon Solar En Power Technologies Pvt Ltd
(Icon).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 10 CRISIL B/Stable
Cash Credit 60 CRISIL B/Stable
Letter of Credit 20 CRISIL A4
The ratings reflect Icon's exposure to stabilisation risks because
of its initial stage of operations, the susceptibility of its
margins to volatility in raw material prices, and its large
working capital requirements. These rating weaknesses are
partially offset by Icon's comfortable capital structure and
moderate debt protection metrics.
Outlook: Stable
CRISIL believes that Icon will continue to benefit over the medium
term from its promoters' considerable entrepreneurial experience.
The outlook may be revised to 'Positive' if the company
successfully stabilises its operations and generates substantial
operating income and cash accruals, thereby supporting its
financial risk profile, particularly liquidity. Conversely the
outlook may be revised to 'Negative' in case of low operating
income and cash accruals, or stretch in working capital cycle, or
any large debt-funded capital expenditure, weakening the company's
financial risk profile, especially liquidity.
Icon, incorporated in May 2014, manufactures solar modules and
sells low-maintenance lead acid batteries. Icon is promoted and
managed by Raipur-based Mr. Shakti Kumar Dubey and Mr. Vipin Kumar
Mirani. The company commenced commercial operations in 2014-15
(refers to financial year, April 1 to March 31). Its unit is in
Gram Digari (Chhattisgarh).
IMPRINT VINIMAY: CRISIL Assigns 'D' Rating to INR125MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facility of Imprint Vinimay Pvt Ltd (IVPT). The rating reflects
instances of delay by IVPT in servicing its debt; the delays have
been caused by the firm's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 125 CRISIL D
IVPT is exposed to risks related to saleability and execution of
its project and is susceptible to cyclicality in the real estate
market. However, the company benefits from promoters' extensive
experience in the real estate industry.
Incorporated in 2005, IVPT undertakes real estate development in
Siliguri (West Bengal). Its daily operations are managed by Mr. R
K Goel and his son Mr. Yogesh Goel.
IRULAPPA MILLS: CRISIL Assigns 'B' Rating to INR70MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Irulappa Mills India Private Limited (IMIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B/Stable
Rupee Term Loan 70 CRISIL B/Stable
The rating reflects IMIPL's nascent stage of operations in
intensely competitive textile industry, susceptibility of
operating margins to fluctuations in cotton prices and regulatory
changes and its Below-average financial risk profile marked by
small networth, high gearing and weak debt protection metrics.
These rating strengths are partially offset by extensive
experience of promoters in textile industry.
Outlook: Stable
CRISIL believes that IMIPL will continue to benefit over the
medium term from the extensive experience of the promoters in
textile industry. The outlook may be revised to 'Positive' in case
the company generates healthy revenue and profitability, while
improving its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' in case of
lower than expected revenues or profitability, or stretch in
working capital cycle, leading to significant impact on its debt
servicing ability.
IMIPL was incorporated in 2013 by Mr. I Periyasamy and Mr. P
Prabhu. The company is engaged in spinning of cotton yarn and
started commercial production in April 2015. Its manufacturing
unit is based in Dindigul, Tamil Nadu.
J J DEVELOPER: CRISIL Suspends 'B' Rating on INR60MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of J J
Developer (JJD).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 60 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by JJD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JJD is yet to
provide adequate information to enable CRISIL to assess JJD'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'
Formed in 2013, JJD is a partnership firm and is promoted by the
Uttamchandani family. The firm is developing Empire Residency, a
project that involves both residential and commercial units.
JAIN OVERSEAS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research has assigned Jain Overseas (JO) a Long-
Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The
agency has also assigned JO's INR330 mil. fund-based working
capital limits 'IND BB-'/Stable/ 'IND A4+' ratings.
KEY RATING DRIVERS
The ratings reflect JO's weak credit metrics as well as its low
and volatile EBITDA margins because the company is price taker
than a price maker. Provisional FY15 financials indicate interest
coverage (operating EBITDA/gross interest expenses) of 1.34x
(FY14: 1.72x), financial leverage (total adjusted debt/operating
EBITDA) of 7.66x (8.48x) and EBITDA margins of 4.03% (3.93%). The
ratings are constrained by the partnership structure of the firm
and its presence in the commoditised nature of business.
However, the ratings are supported by over 15 years of experience
of JO's partners in rice processing.
RATING SENSITIVITIES
Positive: A substantial improvement in the operating margins
leading to improvements in the credit metrics will be positive for
the ratings.
Negative: Further deterioration in the operating margins leading
to weaker credit metrics will be negative for the ratings.
ENTITY PROFILE
Incorporated in 2009, JO is engaged in the milling, processing,
sorting and polishing of Basmati and non-basmati rice. More than
90% of its revenue is generated through indirect export; it has a
9 metric tons per hour milling plant at Sikandrabad, Uttar
Pradesh. It sells basmati rice under three prominent brands of
named Parkhi, TwentyOne and Havelli. According to the management,
FY15 revenue was INR1,092.74 million.
K.R.R ENGINEERING: CRISIL Suspends B+ Rating on INR22.4MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
K.R.R Engineering Pvt Ltd (KRR).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4
Cash Credit 15 CRISIL B+/Stable
Letter of Credit 30 CRISIL A4
Proposed Long Term
Bank Loan Facility 22.4 CRISIL B+/Stable
SME Credit 2.5 CRISIL B+/Stable
Term Loan 7.2 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by KRR
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KRR is yet to
provide adequate information to enable CRISIL to assess KRR'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'
KRR was set up as a proprietorship concern named KRR Engineering
Enterprises by Mr. K R Ramaswamy in 1976; it was reconstituted as
a private limited company in 1986. KRR undertakes heavy
fabrication and machining for a wide range of process industries.
The company is based in Chennai (Tamil Nadu).
LIKHITH HOTELS: CRISIL Suspends 'D' Rating on INR100MM Term Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Likhith
Hotels and Resorts Pvt Ltd (LHRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL D
The suspension of ratings is on account of non-cooperation by
LHRPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, LHRPL is yet to
provide adequate information to enable CRISIL to assess LHRPL'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 2011, LHRPL is currently operating Likhith Hotels
and Resorts, a budget hotel in Bengaluru (Karnataka).
MILESTONES ENGINEERING: ICRA Reaffirms B+ INR1.20cr Loan Rating
---------------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B+ on the
INR1.20 crore, fund-based bank facilities of Milestones
Engineering Private Limited. ICRA has also reaffirmed its short-
term rating of [ICRA]A4 on the company's INR5.25 crore, non-fund
based bank facilities.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based facilities 1.20 [ICRA]B+; reaffirmed
Non-Fund-based facilities 5.25 [ICRA]A4; reaffirmed
ICRA's ratings continue to take into account MEPL's modest scale
of operations, the moderate size of its order book and continued
slowdown in the real estate market which has led to moderation in
order inflows. The ratings are also constrained on account of its
top two customers accounting for ~70% of the pending order book,
leading to substantial execution exposure to these entities. The
ratings, however, continue to favorably factor in the company's
comfortable gearing at 0.29x as on March 31, 2015 owing to high
net worth on account of gradual accretion to reserves. Also, the
ratings derive strength from MEPL's experienced promoters who
(through several group companies) have an established track-record
of operations in the industry, having been associated with several
reputed clients in the past. Further, the ratings also factor in
the operational synergies in the form of cross-selling and raw-
material purchases, derived from the presence of group companies
in similar lines of businesses.
In ICRA's view, the company's ability to improve its operating
scale and improve its operating profitability margins and attain
an optimal working-capital cycle will be the key rating
sensitivities.
Incorporated in 1984, MEPL is a part of the Delhi-based Milestone
group, promoted by Mr. S.K. Aggarwal and his family members. MEPL
is a closely-held company engaged in providing turnkey
installation services for electrification of industrial/
commercial establishments. The company's scope of services
includes providing concept, basic design, detailed engineering,
supply of materials, erection at site, testing/ commissioning and
operation and maintenance of systems like power distribution,
lighting systems etc.
Recent Results
The company reported, on a provisional basis, a net profit of
INR0.08 crore on an operating income of INR8.55 crore in FY 2014-
15, as against a net profit of INR0.15 crore on an operating
income of INR13.47 crore in the previous year.
NAGESHWARI CERAMIC: ICRA Assigns B+ Rating to INR4.70cr Term Loan
-----------------------------------------------------------------
The long-term rating of [ICRA]B+ has been assigned to the INR3.00
crore cash credit facility and the INR4.70 crore term loan
facility of Nageshwari Ceramic Private Limited. The short term
rating of [ICRA]A4 has also been assigned to the INR1.50 crore
non-fund based Letter of credit facility of NCPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]B+ assigned
Term Loan 4.70 [ICRA]B+ assigned
Bank Guarantee 1.50 [ICRA]A4 assigned
The assigned ratings are constrained by the risks associated with
stabilization of plant as per expected operating parameters as its
commercial production recently commenced in April 2015. The
ratings are further constrained by the vulnerability of the
company's profitability to the cyclicality inherent in the real
estate industry, which is the main consuming sector; and to the
adverse fluctuations in prices of raw materials and natural gas,
which is the major fuel. The ratings also take into consideration
the highly competitive ceramic industry with presence of large
established organized tile manufacturers as well as unorganized
players in Morbi (Gujarat) resulting in limited pricing
flexibility. The ratings also take into account the possible
stress on the financial profile given the debt funded nature of
the project and high debt repayments scheduled in the near term.
The assigned ratings, however, favourably consider the extensive
experience of promoters in the ceramic industry and the location
advantage enjoyed by the company due to its presence in Morbi
(Gujarat), India's ceramic hub giving it easy access to raw
material.
Incorporated in November 2013, Nageshwari Ceramic Private Limited
(NCPL) has set up a digitally printed ceramic wall tile
manufacturing facility at Morbi, Gujarat with an installed
capacity of 27,000 MTPA. Initially, the company proposes to
manufacture digitally printed ceramic wall tiles of sizes 12" x
12" and 12" x 18". The promoters of the company have experience in
ceramic industry owing to their association with the previous
group concern namely Genuine Ceramic.
NAVARATHINAM SPINNERS: CARE Rates INR5.56cr LT Loan at B+
---------------------------------------------------------
CARE assigns 'CARE B+' ratings to the bank facilities of
Navarathinam Spinners.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.56 CARE B+ Assigned
The rating assigned by CARE is based on the capital deployed by
the proprietor and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the proprietor in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Navarathinam
Spinners (NS) is constrained by NS's small size of operations in a
highly competitive industry, profitability susceptible to volatile
raw material prices, working capital intensive nature of
operations and debt funded capital expansion.
The rating derives strength from the long experience of the
promoters in the textile industry, established relationship
with customers & suppliers and moderate operating cycle.
Going forward, the ability of the firm to effectively utilize the
incremental capacity proposed while prudently managing the working
capital requirements along with effective management of price risk
would be the key rating sensitivities.
NS was established by Mr E Rathinasabapathy in 2003 as a
partnership firm with his relative as partner, in the style of M/s
Rubika Spinners and in 2007 it was re-named as M/s Ananada Prakash
Textiles. In 2009 due to family partition the partnership firm has
been renamed as NS and converted into proprietorship firm with Mr
E Rathinasabapathy as the proprietor. NS majorly produces 40's
count cotton yarn at present and proposes to manufacture 25'2 to
30's count. As of March 31, 2015, NS has installed capacity of
4986 spindles.
During FY14 (refers to the period April 1 to March 31), the
company reported a net profit of INR0.04 crore on a total
income of INR4.18 crore.
NEXTRA TELESERVICES: ICRA Assigns 'C' Rating to INR15cr LT Loan
---------------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]C to the INR15.00
crore, fund based bank facilities and short term rating of
[ICRA]A4 to the INR0.50 crore non fund based bank facilities of
Nextra Teleservices Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund-based
bank facilities 15.00 [ICRA]C, Assigned
Short Term Non Fund-
based bank facilities 0.50 [ICRA]A4, Assigned
ICRA's rating is constrained on account of NTPL's slow ramp up of
operations, its regional concentration in Delhi-National Capital
Region, strong competition in the telecom space and delay in
various real estate projects which has impacted its pace of
customer acquisition. NTPL suffered cash losses due to limited
revenue growth and high operating costs which coupled with
continuous capital expenditure has stretched its liquidity
position. As a result, its term loans were restructured in March
2015 and the repayments have been rescheduled to commence from
third quarter of FY2017. Further ICRA's rating is constrained on
account of its high total debt resulting in weak gearing and debt
coverage indicators.
ICRA however takes note of the company's presence in the fibre and
cable TV based technologies which provide higher broadband speed
relative to conventional Digital Subscriber Line (DSL) technology
making it more suitable for video, data and other value added
services. ICRA also notes the large existing capacity of NTPL in
the fibre based technology (owing to significant capex
undertaken), existing deep penetration of cable TV networks which
may facilitate subscriber acquisition and the presence of NTPL's
group company Radius Infratel Private Ltd (RIPL), as a fibre based
infrastructure provider which facilitates common synergies.
Going forward, the improved pace of subscriber acquisition
resulting in improvement in operating income, improvement in its
financial profile and timely funding support from promoters shall
be the key rating sensitivities.
NTPL is an Internet Service Provider (ISP) over Fibre to the Home
Network and Cable TV Networks. NTPL commenced operations in March
2013 and is currently operational in Delhi-NCR region with major
presence in Dwarka, Gurgaon, Indirapuram and Noida. The company
provides speed of up to 100 Mbps to its customers with an average
speed of over 10 Mbps.
Recent Results
The company reported a net loss of INR3.72 crore on an operating
income of INR6.89 crore in FY 2013-14, as against a net loss of
INR0.11 crore on an operating income of INR0.42 crore in the
previous year.
NILKANTH COLD: ICRA Suspends 'D' Rating on INR5.66cr Term Loan
--------------------------------------------------------------
ICRA has suspended the [ICRA]D rating assigned to the INR5.66
crore term loans of Nilkanth Cold Storage. The suspension follows
ICRAs inability to carry out a rating surveillance in the absence
of the requisite information from the company.
Incorporated in June 2012, Nilkanth Cold Storage (NCS) is engaged
in providing cold storage facility to potato farmers and traders
on a rental basis and commenced commercial operations from
February 2013. The facility of the firm is located at Deesa,
Gujarat having storage capacity of 168,000 bags each weighing 50
Kg (around 8400 MT of potatoes). The firm is promoted by the
Suthar family who have longstanding experience in potato farming
and trading business.
NOOLI JEWELLERS: ICRA Assigns B+ Rating to INR12cr Cash Credit
--------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to INR12.00 crore
fund based limits of Nooli Jewellers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 12.00 [ICRA]B+ assigned
The assigned rating is constrained by firm's small scale of
operations in the jewellery retailing business; weak financial
profile of the firm with high gearing and stretched coverage
indicators; and high concentration risk inherent to a single
location showroom. The rating is also constrained by high working
capital intensity of the firm due to high levels of inventory held
which also exposes the profitability to volatility in gold prices.
However, the assigned rating draws comfort from the experience of
the promoters and established position of the firm in Tanuku.
Going forward, the company's ability to increase revenues and
improve profitability while managing working capital requirements
will remain key rating drivers from a credit perspective.
Nooli Jewellers (NJ) was formerly known as Nooli Venkatratnam, and
was promoted by Mr. Nooli Venkatranam 70 years back. In the year
1979, name of entity changed to Nooli Jewellers. The firm is
engaged in manufacturing and trading of gold, silver and stone
studded jewellery. The firm's jewellery collection ranges from 22
karat gold jewellery to 18 karat jewellery studded with diamonds,
gemstones like rubies, emeralds, sapphires, semi precious stones.
NJ sells all forms of jewellery including earrings, necklaces,
bangles, rings, anklets etc. The retail show room of the firm is
at Tanuku, East Godavari district of Andhra Pradesh spread across
650 sft.
Recent Results
As per the provisional results for FY 2015, the company reported
profit after tax of INR0.34 crore on turnover of INR37.28 crore as
against profit after tax of INR0.21 crore on turnover of INR19.91
crore during FY 2014.
PATEL TIMBER: CRISIL Cuts Rating on INR3MM Overdraft Loan to 'B'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Patel Timber Depot (PTD) to 'CRISIL B/Stable' from 'CRISIL
B+/Stable'. The rating on the company's short-term facility has
been reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Inland/Import Letter
of Credit 50 CRISIL A4 (Reaffirmed)
Overdraft Facility 3 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects CRISIL's belief that PTD's operating
performance will remain weak over the medium term owing to intense
competition and muted demand from its customers. Revenue declined
by an estimated 51 per cent to INR41 million in 2014-15 (refers to
financial year, April 1 to March 31) from INR84 million in 2013-
14. The downgrade also factors in lengthening of firm's working
capital cycle due to delayed customer collections as reflected in
gross current assets (GCA) of 707 days as on March 31, 2015 as
compared to 450 days as on March 31, 2014. CRISIL believes that
firm's liquidity will remain weak over the medium term due to high
working capital requirements.
The ratings reflect PTD's modest scale of operations in the highly
fragmented timber trading business and its below-average financial
risk profile marked by modest net worth. These rating weaknesses
are partially offset by the extensive experience of PTD's
promoters in the timber trading business.
Outlook: Stable
CRISIL believes that PTD will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established relationship with customers. The outlook may be
revised to 'Positive' if the firm posts large cash accruals,
leading to improvement in its capital structure and liquidity.
Conversely, the outlook may be revised to 'Negative' if PTD's
profitability declines because of volatility in raw material
prices and foreign exchange rates, or if its promoters withdraw
substantial capital, affecting its financial risk profile.
PTD, set up in 2001, is primarily engaged in trading of timber.
The firm sources its timber requirements from Indonesia and
Malaysia. The timber is generally sold to traders located in Tamil
Nadu and Maharashtra.
PDRV ENTERPRISES: CRISIL Reaffirms B+ Rating on INR100M Cash Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of PDRV Enterprises Pvt
Ltd (PDRV) continue to reflect PDRV's modest scale of operations
in the wire-manufacturing industry, its low operating margin, and
large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL B+/Stable (Reaffirmed)
Cash Credit Book Debt 80 CRISIL B+/Stable (Reaffirmed)
Cash Credit-Stock 40 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the company's below-average financial
risk profile, marked by high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of PDRV's promoters in the winding wires
manufacturing industry, their funding support to the company, and
their established relationships with customers and suppliers.
CRISIL had reaffirmed its 'CRISIL B+/Stable/ CRISIL A4' rating to
the bank facilities of PDRV Enterprises Pvt Ltd (PDRV) on May 08,
2015.
Outlook: Stable
CRISIL believes that PDRV will continue to benefit over the medium
term from its promoters' extensive industry experience and
established relationships with customers. The outlook may be
revised to 'Positive' if the company reports substantial cash
accruals while improving its working capital management, leading
to a better financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of significant decline in the
company's operating profitability or deterioration in its working
capital management, leading to pressure on its liquidity and
capital structure.
Update
PDRV's net sales registered year-on-year growth of around 12 per
cent to around INR670 million in 2014-15 (refers to financial
year, April 1 to March 31), driven by sales to Uttar Pradesh (UP)
electricity boards (contributed around INR150 million to revenue
in 2014-15). The company has an unexecuted order book of INR200
million as on March 31, 2015, from UP electricity boards, to be
executed till July 2015. Because of the association with UP state
electricity boards, PDRV's scale of operations is expected to
increase, but will remain modest, over the medium term,
constraining its operating margin and working capital management.
The company's operating margins have however, improved in the last
two years on account of economies of scale, and are expected to
stabilise around that level over the medium term.
The company's operations continue to remain highly working capital
intensive as reflected in its estimated gross current assets
(GCAs) of around 170 days as on March 31, 2015, driven by
inventory of around 50 days and receivables of 100 days. As a
result, the company's bank limit utilisation has been high,
averaging 95 per cent over the six months ended March 31, 2015.
PDRV's net worth is estimated to have remained modest, at around
INR85 million, as on March 31, 2015. The company relies on debt to
fund its working capital requirements, which, along with modest
net worth, resulted in estimated high gearing of around 2.5 times
as on March 31, 2015 (with unsecured loans of INR30.0 million from
promoters and their relatives treated as neither debt nor equity
as they are expected to be retained in the business).
Set up in 2001 and based in Delhi, PDRV manufactures winding wires
used in transformers. Its key promoters are Mr. Rajesh Giri and
his brother-in-law Vikas Talwar.
PRECISION ELECTRONICS: CARE Raises Rating on INR4.80cr Loan to BB
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Precision Electronics Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4.80 CARE BB Revised from
CARE B
Long-term/Short-term Bank 5.00 CARE BB/CARE A4
Facilities Revised from CARE B
/Reaffirmed
Rating Rationale
The revision in the long-term rating of Precision Electronics
Limited (PEL) factors in the commencement of infra services
business segment and addition of new customers leading to
improvement in the financial risk profile of PEL in FY15 (refers
to the period April 1 to March 31). The improvement is
characterised by growth in the total operating income, significant
improvement in its profitability parameters and debt service
coverage indicators coupled with improvement in operating cycle.
The ratings also continue to draw comfort from qualified and
experienced promoter, established track record of operations,
technological tie-ups with reputed international players and
comfortable capital structure. The ratings also take cognizance of
moderate order book and favourable industry scenario.
The ratings, however, continue to remain constrained by small and
fluctuating trend of its revenues largely attributable to tender-
driven business, low bargaining power with its customers, limited
control over timely execution of projects impacted by lengthy
testing and approval process and vulnerability of profitability
due to high fixed overheads.
Going forward, the ability of the company to achieve the envisaged
revenue and profitability while maintaining its capital structure
and growth in order book would be the key rating sensitivities.
PEL was incorporated in May 1979 as a private limited concern
having registered office at New Delhi. Later, in 1989, PEL was
converted into a public limited company and got listed on Bombay
Stock Exchange (BSE) in 1991. Mr Ashok Kanodia, Managing Director,
and Mr Pradeep Kanodia, Executive Director, are the key promoters
of PEL and both have more than three decades of experience. PEL is
engaged in the business of designing and manufacturing of telecom
transmission systems, military communication systems, electronic
warfare systems and C4I2SR systems. PEL's operations are mainly
order based and orders are acquired through tendering process. PEL
has two manufacturing facilities located at Noida (U.P.) and
Roorkee (Uttarakhand) established in 1989 and 2007, respectively.
In FY15, PEL has achieved a total operating income (TOI) of
INR27.56 crore with PBILDT and net loss of INR2.49 crore and
INR0.12 crore, respectively, as against TOI of INR11.55 crore with
loss at PBILDT level and net loss of INR2.19 crore and PAT
of INR2.27 crore in FY14.
PREET JNC: CRISIL Ups Rating on INR54.5MM Term Loan to B+
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Preet JNC (Preet) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Long Term 34 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 54.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects CRISIL's belief that the business risk
profile and the liquidity position of Preet will improve over the
medium term. During 2014-15, the firm's operating income is
estimated to be around INR122 million (on a provisional basis)
with year-on-year sales growth of around 71 per cent supported by
successful ramp-up in scale of operations and healthy order flow.
Over the medium term, the firm's scale of operations is expected
to grow at healthy pace of 20 to 25 per cent backed by capacity
enhancement and healthy order flow. In 2014-15, Preet has managed
to maintain its operating profitability at around 20 per cent
supported by healthy gross margins in job work business. CRISIL
expects the operating margins to be in range of 19 to 20 per cent
over the medium term. The liquidity position of the firm has
improved with improving cushion between expected net cash accruals
against term debt repayment obligations and promoter support.
Preet is expected to generate net cash accruals of over INR20
million against term debt repayment obligation of around INR14.3
million in 2015-16. Also, the promoter has supported the liquidity
with unsecured loan of INR19 million and equity infusion of INR2.6
million in 2013-14 against the capex implemented during the year.
CRISIL expects the firm's business risk profile will improve with
increasing scale of operations and healthy profitability, thereby
improving the liquidity profile over the medium term.
The rating reflects the firm's leveraged capital structure, large
working capital requirements and modest scale of operations in the
intensely competitive fabric processing segment. These rating
weaknesses are partially offset by extensive industry experience
of firm's promoters and its established relations with customers
resulting in healthy operating profitability.
Outlook: Stable
CRISIL believes that Preet will continue to benefit over the
medium term from its promoters' extensive industry experience and
its established relations with customers. The outlook may be
revised to 'Positive' if the firm improves its financial risk
profile with sizeable cash accruals or equity from the promoters.
Conversely, the outlook may be revised to 'Negative' if Preet's
business risk profile weakens due to decline in sales or lower
operating profitability and if its liquidity position is
pressurized by increase in working capital requirement or
substantial debt-funded capital expenditure.
Preet was established in Surat (Gujarat) in 2010-11. The firm
carries out job works and sales for digital printing on fabric.
Mr. Rajesh Juneja oversees the overall operations of the firm.
For 2013-14 (refers to financial year April 1 to March 31), Preet
reported a net profit of INR1.6 million on net sales of INR71.6
million, as against a net profit of INR0.3 million on net sales of
INR26.4 million for 2012-13.
R C PLASTO: CRISIL Suspends B+ Rating on INR250MM Term Loan
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
R C Plasto Tanks and Pipes Pvt Ltd (RCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 50 CRISIL B+/Stable
Term Loan 250 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by RCPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RCPL is yet to
provide adequate information to enable CRISIL to assess RCPL'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'
RCPL was incorporated in September 2010 by the Nagpur
(Maharashtra) based, Agrawal family. The company manufactures
plastic products, which include PVC pipes, HDPE pipes, Roto
moulded tanks, drip irrigation systems, PVC fittings, and blow
moulded tanks at Nagpur. RCPL commenced its commercial operations
from September 2012 onwards. RCPL is undertaking a three-phase
mega project under the Maharashtra government's mega project
policy. Phase 1 of the project towards setting up capacities for
manufacturing pipes, tanks and fittings is complete. Phase II and
Phase III are expected to be complete by April 2015.
R.S. STEEL: CRISIL Suspends 'B+' Rating on INR245MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
R.S. Steel Industries Pvt Ltd (RSSIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 245 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 23.8 CRISIL B+/Stable
Term Loan 31.2 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
RSSIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RSSIPL is yet to
provide adequate information to enable CRISIL to assess RSSIPL'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'.
RSSIPL was incorporated in 2009 by Mr. G Rajendran and his family
members. The company manufactures thermo-mechanically treated
(TMT) bars at its facilities in Ponneri (Tamil Nadu). The company
sells its TMT bars under the brand, Udhaya TMT. Prior to setting
up RSSIPL, the promoters were engaged in trading in metal scrap.
RAHUL COTTON: CARE Assigns 'B+' Rating to INR5cr LT Bank Loan
-------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Rahul
Cotton Factory Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Rahul Cotton Factory
Private Limited (RCPL) is primarily constrained on account of its
modest scale of operations in the highly competitive and
fragmented cotton ginning industry and its financial risk profile
marked by low profitability, moderately leveraged capital
structure, weak debt coverage indicators and stressed liquidity
position. The rating is further, constrained on account of the
susceptibility of the company's profitability to cotton price
fluctuation, seasonality associated with the cotton availability
and susceptibility to the change in the government policies.
The rating, however, derives strength from the long standing
experience of the promoters along with its established track
record of around a decade in the industry and location advantage
by way of proximity to the raw material as well as customers.
The ability of the company to increase its scale of operations
while improving profitability in light of volatile raw material
prices and efficient management of working capital are the key
rating sensitivities.
Sanawad-based (Rajasthan) RCPL, incorporated in 2007, was promoted
by Mr Shanti Lal Jain along with his family members to primarily
undertake the business of cotton ginning and pressing activity
along with cotton seeds extraction.
RCPL operates from its sole manufacturing unit located at Sanawad,
Khargone having an installed capacity of 3,800 Metric Tonnes Per
Annum (MTPA) of cotton bales as on May 30, 2015. Furthermore, the
company extracts around 1 lakh quintals of cotton seeds per year
in the ginning and pressing process as a by-product as well as
undertakes job work activity for other units pertaining to ginning
and pressing. Moreover, the company also trades in cotton bales
and seeds as well as engaged in the selling of cotton seed oil and
cotton seed oil cake to the companies located in and around
Khargone district. The company caters to the domestic market and
sells its products directly with sales concentrated predominantly
inMadhya Pradesh. It procures raw cotton, key raw material, from
the local market and nearby areas. 'Jain family' has also
promoted other companies namely Arihant Trading Company, Rahul
Ginning Indutries and Amit Trading Company engaged in the similar
line of business.
During FY14 (refers to the period April 1 to March 31) RCPL
reported a total operating income of INR17.07 crore (FY13:
INR31.90 crore) with a PAT of INR0.20 crore (FY13: INR0.07 crore).
Furthermore, as per FY15 provisional result, RCPL achieved net
sales of INR29.07 crore.
RASHMI STEELS: ICRA Assigns B+ Rating to INR15cr Cash Credit
------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to the INR15.00
crore fund based cash credit limits and to the INR6.00 crore fund
based term loan limits and a short term rating of [ICRA]A4 to the
INR4.00 crore non-fund based letter of credit limits of Rashmi
Steels.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Cash Credit
(CC) Limits 15.00 [ICRA]B+ assigned
Fund Based Term Loan
Limits 6.00 [ICRA]B+ assigned
Non-Fund Based Letter
of Credit (LC) Limits 4.00 [ICRA]A4 assigned
The assigned ratings take into account the low profitability as a
result of limited value addition in the trading business and
pricing pressures from presence in the intensely competitive,
unorganized and fragmented metals and metal scrap trading
business. The ratings are constrained by the relatively high
working capital intensity considering the trading nature of
business resulting from inventory stocking practice and relatively
high debtor days which renders high reliance on external working
capital borrowings. Inventory holding also renders exposure to
price volatility in the trading products, the prices of which are
commoditized in nature. The ratings are also constrained by the
leveraged capital structure marked by high debt levels given the
corresponding low networth levels and vulnerability of the same to
withdrawals by the proprietor.
The ratings, however, favourably factor in the experience of the
proprietor in the metals and scrap trading business which has been
instrumental in building relationship with domestic as well as
international suppliers and a reliable customer base.
ICRA also takes note of the recent commissioning of the aluminum
extrusion plant which is likely to improve the operating scale in
the near term, however, the ability to bring in additional
proprietor's funds to limit leveraging of the capital structure is
critical given the increased external borrowings to fund the capex
and working capital requirements.
Promoted by Mr. Babulal G Bohra, Rashmi Steels (RS) commenced
operations in 2001 when it used to trade in Stainless Steel (SS)
pipes in various grades. It later diversified into trading of SS
rods, rounds, wire rods etc and into trading of scrap in 2006. The
proprietorship concern has its registered office is in Bhuleshwar,
Mumbai, an owned warehousing facility in Bhiwandi and a leased one
in Mumbai.
Recent results
Rashmi Steels has reported a net profit of INR0.45 crore on an
operating income of INR57.82 crore for the year ending March 31,
2014.
RAVI METALLICS: ICRA Suspends 'D' Rating on INR14cr Term Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]D rating assigned for the INR14 crore
term loan and working capital facility of Ravi Metallics Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
REGENERATIVE MEDICAL: Ind-Ra Assigns 'IND BB' LT Issuer Rating
--------------------------------------------------------------
India Ratings and Research has assigned Regenerative Medical
Service Private Limited (RMSPL) a Long-Term Issuer Rating of
'IND BB'. The Outlook is Stable. The agency has also assigned
these ratings to RMSPL's bank loans:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-term loans 45.3 Assigned 'IND BB'/Stable
Fund-based 45.0 Assigned 'IND BB'/Stable/
Facilities 'IND A4+'
KEY RATING DRIVERS
The ratings reflect RMSPL's small scale of operations and moderate
credit metrics. Provisional FY15 financials indicate revenue of
INR234 mil. (FY14: INR230 mil.), net leverage of 2.0x (2.5x) and
interest coverage of 1.7x (2.7x).
The ratings also factor in the company's moderate liquidity
position with its use of the fund-based facilities being 82% on
average over the 12 months ended April 2015. The ratings are
supported by RMSPL's founders' over two decades of experience in
stem cell banking and cell regenerative therapies. Also, EBITDA
margin were stable at around 15% over FY11-FY14.
RATING SENSITIVITIES
Positive: Substantial growth in the top-line and an improvement in
the profitability leading to a sustained improvement in the credit
metrics will lead to a positive rating action.
Negative: A substantial decline in the profitability resulting in
sustained deterioration in the credit profile will lead to a
negative rating action.
COMPANY PROFILE
RMSPL was set up in 1989 as Satyan Intermediaries and was engaged
in indenting. In 2009, Satyan intermediaries was converted into
RMSPL and began stem cell banking (contributes 75% to revenue) and
cell regenerative therapy development (12%). Indenting still
contributes 13% to overall revenue. RMSPL is the only player in
India engaged in cell regenerative therapies.
SADAF STEEL: CRISIL Reaffirms B+ Rating on INR53.5MM Cash Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sadaf Steel India Pvt
Ltd (SSIPL) continue to reflect SSIPL's small scale of operations
in the intensely competitive ferrous and non-ferrous scrap-trading
industry, and its large working capital requirements. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 53.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SSIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SSIPL's liquidity
improves, driven most likely by significant improvement in its
scale of operations and profitability leading to substantial
accruals, or a decline in its working capital requirements, or
equity infusion. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile deteriorates,
most likely because of a decline in its profitability, or large
debt-funded capital expenditure, or a stretch in its working
capital requirements.
Incorporated in 2007, SSIPL is promoted by Mr. Sadik Allana and
his family members; it is headquartered in Bhavnagar (Gujarat).
The company trades in ferrous and non-ferrous scrap, with the
latter contributing most of its revenue.
SSIPL, on a provisional basis, has reported a book profit of
INR1.70 million on net sales of INR304.2 million for 2014-15
(refers to financial year, April 1 to March 31), as against a book
profit of INR2.02 million on net sales of INR252.5 million for
2013-14.
SANGHAVI EXPORTS: CARE Lowers Rating on INR544.50cr Loan to 'D'
---------------------------------------------------------------
CARE revises rating assigned to the bank facilities of Sanghavi
Exports International Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 544.50 CARE D Revised from
CARE BBB
Rating Rationale
The rating revision takes into consideration stressed liquidity
position of the company demonstrated by elongated working capital
cycle, substantial delays in export realisation, ongoing
irregularities in export credit facilities, worsened coverage
indicators and overall deterioration in the financial profile.
Sanghavi Exports International Pvt. Ltd (SEIPL) was established
as, a partnership firm in 1984 by the late Mr Vasantlal R
Sanghavi, Mr Kirtilal R Sanghavi, Mr Rameshchandra R Sanghavi and
Mr Chandrakant R Sanghavi (Chairman). In April 2007, the firm was
converted to a private limited company. SEIPL is engaged in the
business of processing and exports of cut and polished diamonds.
The company also undertakes trading of diamonds on a limited
scale. SEIPL's manufacturing facility is located at Surat, Gujarat
with a staff strength of 1500 workers and employees. The company
currently does not enjoy any direct sourcing arrangement for rough
diamonds from mining companies. Hence, rough diamonds are procured
from intermediaries majorly from Belgium, Dubai and Hong Kong.
Polished diamonds are exported mainly to Hong Kong, USA and Dubai.
SATYAMEV COT: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research has assigned Satyamev Cot Fibers
Private Limited (SCFPL) a Long-Term Issuer Rating of 'IND B+'.
The Outlook is Stable. The agency has also assigned ratings to
SCFPL's bank facilities as:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fund-based limits 60.0 'IND B+'/Stable
Term loan 22.9 'IND B+'/Stable
KEY RATING DRIVERS
The ratings reflect SCFPL's limited operational track record of
two years, small scale of operations and moderate credit profile.
Provisional FY15 financials indicate revenue of INR305m (FY14:
INR185 mil.), interest coverage of 2.4x (1.9x) and net leverage of
4.6x (12.1x).
The ratings are supported by SCFPL's strong liquidity profile with
no instances of overuse in the working capital limits during the
12 months ended May 2015.
RATING SENSITIVITIES
Positive: A positive rating action could result from an
improvement in the scale of operation while maintaining the
current credit profile.
Negative: A negative rating action could result from deterioration
in the overall credit metrics.
COMPANY PROFILE
Incorporated in 2012, SCFPL is engaged in cotton ginning and
pressing. It generates revenue from selling of cotton seeds and
cotton bales. The company supplies its products to all over
India. It has a production capacity of 25,000 bales/year. The
firm is managed by Vandan Patidar and Savitribai Gole. The firm
has its registered office at Anjad, Madhya Pradesh.
SHREE BALAJI: ICRA Suspends B+/A4 Rating on INR20cr Bank Loan
-------------------------------------------------------------
ICRA has suspended its long-term rating of [ICRA]B+ and short-term
rating of [ICRA]A4 assigned to the INR20 crore bank facilities of
Shree Balaji Aromatics Private Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
SHREENATHJI GEMS: CRISIL Suspends B+ Rating on INR50MM Cash Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Shreenathji Gems and Jewels Pvt Ltd (SGJPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 30 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
SGJPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SGJPL is yet to
provide adequate information to enable CRISIL to assess SGJPL'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'
SGJPL was founded in 2010 by Mr. Sunil Dokania and his wife Mrs.
Priti Dokania. The company was incorporated to take over the
business of Shreenathji Gems & Jewels, a proprietorship concern
set up by Mr. Sunil Dokania in 2001. SGJPL manufactures high-end
diamond-studded gold jewellery, and has a showroom in Malad
(Mumbai).
SHRI BIHARIJI: CARE Suspends 'D' Rating on INR63.72cr LT Loan
-------------------------------------------------------------
CARE revises and suspends the ratings assigned to bank facilities
of Shri Bihariji Cold Rollers Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 63.72 CARE D & Suspended
Revised from 'CARE B'
Short term Bank Facilities 14.00 CARE D & Suspended
Revised from 'CARE A4'
Rationale
The revision of the ratings assigned to the bank facilities of
SBPL factors in the ongoing delays in the servicing of rated debt
obligations due to its weak liquidity profile. The reason for such
liquidity stretch was delay in receipt of sale proceeds leading to
cash flow mismatches.
Further, as the company has not furnished the information required
by CARE for monitoring of the rating, CARE has suspended the
ratings assigned to the bank facilities of SBPL.
Shri Bihariji Cold Rollers Pvt. Ltd. (SBPL), incorporated in July
1999, was promoted by Shri Durga Prasad Agarwal and Smt. Sangita
Agarwal (wife of Shri Agarwal) of Kolkata to set up a 6000 metric
tonnes per annum (MTPA) Cold Rolling Steel Strips (CRSS) plant at
Howrah, West Bengal. The plant commenced commercial operation from
January 2000. The company has expanded its facilities over the
years and currently has manufacturing capacity of CRSS of 36,000
MTPA. The company manufactures maximum 600mm width of CRSS with
thickness between 2mm to 0.20mm.
SHRI RAGHUNATH: CRISIL Suspends B- Rating on INR438.9MM Term Loan
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Shri Raghunath Rai Memorial Educational and Charitable Trust
(SRMECT).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 50 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 47 CRISIL B-/Stable
Term Loan 438.9 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by
SRMECT with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SRMECT is yet to
provide adequate information to enable CRISIL to assess SRMECT'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'
SRMECT, set up in 2003, is managed by two brothers, Mr. Ashwani
Garg and Mr. Ashok Garg. The brothers own and run 10 educational
institutes that provide courses in various fields, such as
engineering, pharmacy, and management. The institutes are located
in Banur (Punjab), and have more than 4000 students.
SRI KODURI: ICRA Revises Rating on INR17cr Fund Based Loan to 'B'
-----------------------------------------------------------------
ICRA has revised the long term rating to INR20.00 crore bank
limits of Sri Koduri Enterprises Private Limited from [ICRA]B+ to
[ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based facilities 17.00 [ICRA]B revised
Non-Fund based facilities 0.50 [ICRA]B revised
Unallocated 2.50 [ICRA]B revised
The revision of rating is constrained by high inventory levels
maintained by the company given its dealership of multiple
Original Equipment Manufacturers (OEMs) leading to stretched
working capital requirements, and its weak financial profile
characterized by high gearing and weak coverage indicators on
account of high working capital borrowings and inherently low
profitability in the auto dealership business. The rating
continues to be constrained by high geographic concentration risk
for SKEPL with major proportion of sales generated from East
Godavari district of Andhra Pradesh and losses reported by the
company in FY2014 owing to high administrative and interest
expenses. The closure of Honda Motorcycles & Scooters India
Private Limited (HMSIPL) dealership in FY2015 could impact the
revenues to a certain extent, which is expected to be mitigated by
the proposed opening of Tata Motors and Fiat showrooms by the
company in the second half of FY2016. The rating, however,
continues to derive comfort from the long track record of the
promoters in auto dealership business and the established position
of SKEPL as an authorized dealer for Piaggio Vehicles Private
Limited in Andhra Pradesh.
Sri Koduri Enterprises Private Limited (SKEPL) is an authorized
auto dealer of three wheelers and four wheelers manufactured by
Piaggio Vehicles Private Limited (subsidiary of Piaggio S.P.A, an
Italy-based manufacturer), Case New Holland Construction Equipment
(India) Pvt. Ltd and MRF Tyres in Andhra Pradesh. The Company is
also engaged in servicing of vehicles along with sale of spare
parts. SKEPL has 11 showrooms in East Godavari district for its
various dealerships.
Recent Results
During FY2014, the company recorded a turnover of INR48.06 crore
and a net loss of INR0.18 crore against INR53.28 crore and INR0.14
crore respectively during FY2013. For FY2015 (provisional), the
company has reported a turnover of INR60.38 crore.
SRI VENKATESWARA: ICRA Reaffirms B+ Rating on INR1.57cr Term Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
INR1.82 crore (decreased from INR2.93 crore) fund based limits of
Sri Venkateswara Aerospace Private Limited. ICRA has also
reaffirmed ratings of [ICRA]B+/[ICRA]A4 to the INR3.50 crore bank
guarantee limits and INR8.68 crore (increased from INR7.57 crore)
unallocated limits of SVAPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 0.25 [ICRA]B+ reaffirmed
Term Loan 1.57 [ICRA]B+ reaffirmed
Bank Guarantee 3.50 [ICRA]B+/[ICRA]A4 reaffirmed
Unallocated limits 8.68 [ICRA]B+/[ICRA]A4 reaffirmed
The reaffirmation of ratings continues to be constrained by
SVAPL's modest scale of operations in the defence and aerospace
component manufacturing industry; high sector concentration with
aerospace and defence being the primary end user industry; and
high client concentration risk with top-3 clients contributing
more than 90 percent of the sales. The ratings, however,
favourably factor in the established position of the group as a
recognized vendor to laboratories in the aerospace and defence
sector; reputed clientele of the company; favourable demand
outlook given the central government's special focus on defence
sector, consistent profitability levels and healthy order book
size providing revenue visibility in the medium term.
Going forward, the company's ability to increase its revenues and
diversification of its client base would be the key rating drivers
from a credit perspective.
Sri Venkateswara Aerospace (Private) Limited was incorporated in
the year 1998 by Mr V. Lakshmi Narayan Reddy; it is involved in
the business of manufacture of various sub assemblies and spare
components for the aerospace and defence sector. The company's
first manufacturing unit is in Ancillary Industrial Estate in
Ramchandrapuram, Hyderabad and the second unit is in Maheshwaram
Mandal, Hyderabad which started operations from February 2013. The
clients include laboratories that form a part of Indian Space
Research Organization (ISRO), Defence Research and Development
Organization (DRDO) etc.
Recent Results
As per the provisional results for FY 2015, the company reported
profit after tax of INR0.46 crore on turnover of INR7.10 crore as
against profit after tax of INR0.43 crore on turnover of INR6.86
crore during FY 2014.
TVS MOTOR: To Wind Up Assembly Operations in China
--------------------------------------------------
Business Standard reports that TVS Motor has said it will wind up
local assembly operations in China.
"After a complete review of the proposed activities through SBDC,
it was advised that local manufacturing operations may not be
required in China. Hence, the board has decided to retain the
Representative office in China but to close down the operations of
SBDC," the company said in its annual report, Business Standard
relates.
Meanwhile, TVS Motor's Indonesian arm has said it will launch a
200 cc sports motorcycle and a new variant of its 110 cc Dazz
scooter in 2015-16.
This is the first time TVS Motor or any of its subsidiaries is
launching a 200cc motorcycle. The company's highest version yet,
both in the domestic and international market, is the 180cc TVS
Apache.
According to the report, the company said it has invested an
additional $4 million in the Indonesian arm (PT TVS Motor Company
Indonesia).
Business Standard relates that the motorcycle industry in
Indonesia declined by 3%, and the decline was more pronounced in
the last quarter of the financial year, TVS said. Industry growth
as a whole slumped 17% due to weak consumer sentiments.
During 2014-15, the loss at EBITDA level was marginally lower at
$8 million compared to loss of $9 million reported in 2013-14, the
report discloses.
Earlier TVS Motor Company (Europe) B V & TVS Motor (Singapore) Pte
Ltd were incorporated by TVS Motor to serve as special purpose
vehicles for making and protecting the investments made in
overseas operations of PT TVS, Business Standard relates.
The report notes that considering the change in the evaluation,
the company has initiated steps to voluntarily wind up TVSM
Europe, subject to such regulatory approvals/consents as may be
required, both under Indian/foreign laws. The other overseas
entity -- TVS Motor Singapore Pte Ltd will continue to hold the
investment in PT TVS.
During the year under review, the company has made an additional
investment of Rs 2.01 crore in the ordinary shares of TVS Motor
Singapore Pte Ltd and the shares were allotted in April 2015, the
report adds.
TVS Motor Company Limited, which is part of TVS Group,
manufactures motorcycles, scooters, mopeds and auto rickshaws in
India.
VANTAGE SPINNERS: CARE Raises Rating on INR68.75cr Loan to 'B+'
---------------------------------------------------------------
CARE revises the rating assigned to bank facilities of Vantage
Spinners Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 68.75 CARE B+ Revised from
CARE C
Rating Rationale
The revision in the rating assigned to the bank facilities of
Vantage Spinners Private Limited (VSPL) takes into account
growth in the total operating income in FY15 (Provisional) (refers
to the period April 01 to March 31), and marginal improvement in
liquidity profile on the back of decrease in operating cycle. The
rating, also takes into consideration continuous growth in
revenue, geographical advantage for raw material availability,
increase in the installed capacity, stable outlook for the cotton
yarn and various subsidies received from the government. However,
the rating remained constrained by high inventory holding period,
decline in PBILDT margin, and deterioration of capital structure,
susceptibility of margins to volatility in raw cotton prices and
limited track record of the company in the industry. The ability
of the company to further increase the scale of operations,
improve the capital structure and manage working capital
efficiently, improve the profit margins while withstanding the
volatility of raw cotton prices are the key rating sensitivities.
VSPL was incorporated on July 28, 2006, by Mr. Potluri Mohana
Murali Krishna, Mr. Potluri Soma Sekhar and Ms Nandamuri
Meenalatha. The promoters inducted Mr. J. S. Prasad Reddy as the
chairman of VSPL in 2010. He has over 26 years of experience of
working in a spinning mill. VSPL is mainly into manufacturing of
cotton yarn (40s and 60s count) with an installed capacity of
31,500 spindles. The company's manufacturing plant is located at
Nuzividu Mandalam in Krishna district, Andhra Pradesh. The company
started commercial operation in February 2010.
In January 2015, VSPL added three Open-ended spinning machines
with annual installed capacity of 4,641 metric tone (MT) to
manufacture cotton yarn of 10s/12s/16s count size. Currently,
VSPL's capacity utilisation has remained around 94%-96% of
installed capacity of 31,500 spindles and 2,688 rotors (Open Ended
machines).
For FY15 (Provisional), VSPL reported PBILDT of INR14.89 crore and
PAT of INR1.78 crore on total operating income of INR98.62 as
against PBILDT of INR15.23 crore and PAT of INR1.08 crore on total
operating income of INR80.47 crore.
VIRAJ CONSTRUCTION: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research has assigned Viraj Construction Pvt Ltd
(VCPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable. The agency has also assigned these ratings to VCPL's bank
loans:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-term loan 1,086.40 'IND BB-'/Stable
Fund-based working 238.00 'IND BB-'/Stable
capital limit
Proposed 175.00 'Provisional IND BB-'/Stable
long-term loan
Proposed fund-based 82.00 'Provisional IND BB-'/Stable
working capital limit
Proposed non-fund-based 67.50 'Provisional IND A4+'
working capital limit
KEY RATING DRIVERS
The ratings reflect the time and cost overrun risks associated
with VCPL's three on-going projects, namely BBD Green, BBD Times
and BBD Green Integrated Township. BBD Times has been delayed by
a year, and BBD Green Integrated Township is at a nascent stage.
The ratings also consider the fact that VCPL is developing
projects in its name for the first time, and earlier it had been
into executing projects for other developers.
The ratings are supported by the fact that the company has already
sold close to 50% of the units in BBD Green. Also, all the three
projects are strategically located near basic amenities such as
schools, hospitals, markets etc.
RATING SENSITIVITIES
Positive: Timely project completion along with steady cash flow
generations would be positive for the ratings.
Negative: Any delays or cost overruns in the projects affecting
cash flows will be negative for the ratings.
COMPANY PROFILE
VCPL was established in 2005. It is promoted by R.K Agarwal. The
company is engaged in executing real estate projects. BBD Green
City and BBD Green City Integrated Township are residential
projects and BBD Times is a commercial project.
VISHAL CONDUIT: CARE Assigns B/A4 Rating to INR5cr Bank Loan
------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Vishal Conduit Products Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short-term
Bank Facilities 5 CARE B/CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Vishal Conduit
Products Pvt. Ltd. (VCPL) are constrained by its small scale of
operations with low profitability margin, lack of backward
integration vis-a-vis volatility in prices with low capacity
utilization, working capital intensive nature of operations with
weak debt service coverage indicators and cyclicality in the
steel industry and exposure to forex rates. The aforesaid
constraints are partially offset by the experience of the
promoters with long track record of operations and comfortable
capital structure.
The ability of the company to grow its scale of operation and
improve its profitability and to combat the pressure of
volatility in raw material prices & manage working capital are the
key rating sensitivities.
Vishal Conduit Products Pvt. Ltd. (VCPL), incorporated in 2005 by
the Singh family of Jalandhar Punjab with the objective of
manufacturing of iron & steel products. Since inception, the
company is engaged in manufacturing of mild steel (MS) ingots and
mild steel (MS) pipes with the sale of MS ingots accounting for
around 96% of the total sales in FY14 (refers to the period
April 1 to March 31). The facility of the company is located at
Jalandhar, Punjab with an annual installed capacity of 12,000 MT
per annum for (MS) ingots and 1200 MT per annum for (MS) pipes. Mr
S Mohinder Singh (Graduate), Managing Director, looks after the
day to day operations of the entity. VCPL also undertook trading
of iron and steel products in the last three years but the same
accounted for less than 5%.
As per the audited results of FY14, VCPL reported a PBILDT of
INR0.73crore (INR0.73 crore in audited FY13) and net loss of
INR0.09 crore (net loss of INR0.25 crore in audited FY13), on a
total operating income of INR23.65 crore (INR25.74 crore in
audited FY13). Furthermore, during FY15 (provisional), the company
has maintained to have achieved TOI of INR24.24 crore.
WALLMARK CERAMIC: ICRA Assigns B+ Rating to INR4.44cr Term Loan
---------------------------------------------------------------
A rating of [ICRA]B+ has been assigned to the INR2.00 crore cash
credit facility and INR4.44 crore term loan facility of Wallmark
Ceramic Industry. ICRA has also assigned a short term rating of
[ICRA]A4 to the INR1.10 crore bank guarantee facility of WCI.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 4.44 [ICRA]B+ assigned
Cash Credit 2.00 [ICRA]B+ assigned
Bank Guarantee 1.10 [ICRA]A4 assigned
The assigned ratings reflect the firm's relatively limited track
record of operations and stabilization risks along with stretched
capital structure owing to debt funded capital expenditure. The
ratings are also constrained by the competitive business
environment in which the firm operates limiting improvement in
realizations and vulnerability of its profitability to cyclicality
inherent in real estate industry and to adverse fluctuation in raw
material & fuel prices.
However, the ratings favorably factor in the promoters' extensive
experience in the ceramic industry and favorable location of the
plant with its proximity to raw material sources.
Established in 2013, Wallmark Ceramic Industry is a wall tiles
manufacturer having installed capacity of 21,375 MT per annum. The
firm is promoted by five partners led by Mr. Balvantbhai Ambani
and Mr. Mangalbhai Ambani. The promoters have over a decade of
experience in the ceramic tiles business (association with Airson
Ceramic Industries and Alliance Vitrified Pvt. Ltd).
*********
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
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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
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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 2015. All rights reserved. ISSN: 1520-9482.
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