/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/151019.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, October 19, 2015, Vol. 18, No. 206 Headlines A U S T R A L I A HBM ELECTRICAL: First Creditors' Meeting Set For October 26 ORBIT DIMENSION: First Creditors' Meeting Set For October 26 SURFIES SPORTS: First Creditors' Meeting Set For October 28 TWO PENNY: First Creditors' Meeting Set For October 26 VAST ACADEMY: First Creditors' Meeting Set For October 26 C H I N A AOXING PHARMACEUTICAL: Swings to $5.5M Net Income in Fiscal 2015 CHINA GINSENG: Incurs $3.9 Million Net Loss in Fiscal 2015 PARKSON RETAIL: Fitch Lowers IDR to 'B+'; Removes from Watch Neg. I N D I A ADITI CREATION: CRISIL Suspends B Rating on INR80MM Cash Loan AGARWALA'S POLYTRADE: Ind-Ra Suspends BB- Long-Term Issuer Rating ARTEFACT PROJECTS: ICRA Assigns C Rating to INR18cr Loan ASR MET: ICRA Assigns B+ Rating to INR35cr Cash Credit BAJAJ BASMATI: CRISIL Cuts Rating on INR380MM Cash Loan to D BATRA LOGISTICS: ICRA Reaffirms B+ Rating on INR7.55cr Loan BHASKAR POULTRIES: CRISIL Suspends D Rating on INR65.2MM Loan CARREG COMMODITIES: CRISIL Assigns B Rating to INR70MM Loan CNN MINERALS: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating DEVAKI FOUNDATIONS: CRISIL Suspends 'D' Rating on INR100MM Loan FAHIM TANNING: CRISIL Suspends 'D' Rating on INR30MM Cash Loan GANGA PLASTIC: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating HERMAN PROPERTIES: CRISIL Suspends B+ Rating on INR250MM Loan HOTEL SWOSTI: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating IMAGE INDUSTRIES: CRISIL Suspends B+ Rating on INR60MM Loan J. RAMACHANDRAIAH: CRISIL Suspends D Rating on INR70MM LT Loan JAYABHERI AUTOMOTIVES: CRISIL Reaffirms B- Rating on INR150M Loan JOHARILAL AGARWALA: Ind-Ra Suspends 'IND BB-' LT Issuer Rating JYOTI VINCOM: ICRA Assigns B- Rating to INR11cr Term Loan K. L. RATHI: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating KRISHNA TEXTILE: CRISIL Suspends D Rating on INR53.3MM LT Loan LAKSHMI COTTON: CRISIL Reaffirms B Rating on INR50MM Cash Loan M.D. COTTON: ICRA Reaffirms B+ Rating on INR6.0cr Cash Loan MAHAVIR ORE: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating MEGHDOOT GINNING: ICRA Revises Rating on INR30cr Loan to B MERRITRONIX PVT: CRISIL Reaffirms B+ Rating on INR20MM Loan N.A.M. EXPRESSWAY: Ind-Ra Affirms D Rating on INR10.6BB Loans NANU RAM: ICRA Reaffirms B+ Rating on INR6.0cr LT Loan NATIONAL PLASTICS: CRISIL Suspends B+ Rating on INR57.5MM Loan PRAGATI ENGINEERING: ICRA Suspends C+ Rating on INR6.5cr Loan PRAMUKH ALLOYS: ICRA Suspends B- Rating on INR7.30cr Loan R R OOMERBHOY: CRISIL Reaffirms 'D' Rating on INR123.3MM Loan RIDDHI SIDDHI: ICRA Reaffirms B Rating on INR40cr LT Loan S.B. ENTERPRISES: Ind-Ra Assigns IND BB- Long-Term Issuer Rating SELLIAMMAN CONSTRUCTIONS: CRISIL Suspends B Rating on INR80M Loan SENTHIL ANDAVAR: CRISIL Suspends B Rating on INR33.4MM Term Loan SHAJAHANS JEWELLERS: CRISIL Suspends B Rating on INR200MM Loan SHANKER COTGIN: CRISIL Reaffirms B+ Rating on INR60MM Cash Loan SHIVAM COTTON: ICRA Reaffirms B+ Rating on INR12cr LT Loan SHIVSHAKTI BARRELS: CRISIL Assigns B Rating to INR45MM Cash Loan SHREE TEL-FAB: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating SRI BALMUKUND: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating STARSHINE NIRMAN: Ind-Ra Suspends 'IND BB-' LT Issuer Rating SUDHAMA HOSIERIES: CRISIL Suspends C Rating on INR29.1MM Loan SUNDEEP SRIVARAS: CRISIL Suspends B+ Rating on INR80MM Loan T.J.S. ENGINEERING: CRISIL Suspends B+ Rating on INR90MM Loan U. M. RAMESH: CRISIL Suspends D Rating on INR50MM Term Loan ULCCS IT: CRISIL Suspends B+ Rating on INR1.26BB LT Loan VARADHARAJA FOODS: CRISIL Suspends B- Rating on INR32.5MM Loan VENUS P.P.: CRISIL Reaffirms D Rating on INR49.7MM Bank Loan VISION METALIK: CRISIL Reaffirms B+ Rating on INR58MM Term Loan WUD TOOLS: CRISIL Suspends B Rating on INR92.4MM LT Loan N E W Z E A L A N D LIFESTYLE HEALTH: Placed in Voluntary Liquidation P H I L I P P I N E S ORIENT COMMERCIAL: SC Denies Owner's Petition v. Auction Order S O U T H K O R E A PANTECH CO: Seoul Court Approves Revival Plan - - - - - ================= A U S T R A L I A ================= HBM ELECTRICAL: First Creditors' Meeting Set For October 26 ----------------------------------------------------------- Steven Gladman of Hall Chadwick was appointed as administrator of HBM Electrical Pty Limited on Oct. 14, 2015. A first meeting of the creditors of the Company will be held at Hall Chadwick, Level 19, 144 Edward Street, in Brisbane, Queensland, on Oct. 26, 2015, at 10:00 a.m. ORBIT DIMENSION: First Creditors' Meeting Set For October 26 ------------------------------------------------------------ Graeme Beattie & Christopher Darin of Worrells Solvency were appointed as administrators of Orbit Dimension Australia Pty. Ltd. on Oct. 14, 2015. A first meeting of the creditors of the Company will be held at Suite 3, Level 1, 96 Phillip Street, in Parramatta, on Oct. 26, 2015, at 10:00 a.m. SURFIES SPORTS: First Creditors' Meeting Set For October 28 ----------------------------------------------------------- Peter A Amos of Amos Insolvency was appointed as administrator of Surfies Sports Bar Pty Ltd on Oct. 16, 2015. A first meeting of the creditors of the Company will be held at Amos Insolvency, 25/ 185 Airds Road, in Leumeah, on Oct. 28, 2015, at 11:00 a.m. TWO PENNY: First Creditors' Meeting Set For October 26 ------------------------------------------------------ Domenic Calabretta of Mackay Goodwin was appointed as administrator of Two Penny Blue Pty Ltd on Oct. 14, 2015. A first meeting of the creditors of the Company will be held at Mackay Goodwin, Exchange House, Suite 2, Level 8, 10 Bridge Street, in Sydney, on Oct. 26, 2015, at 11:00 a.m. VAST ACADEMY: First Creditors' Meeting Set For October 26 --------------------------------------------------------- Schon Gregory Condon of Condon Associates was appointed as administrator of Vast Academy (Aust) Pty Limited on Oct. 14, 2015. A first meeting of the creditors of the Company will be held at Condon Associates, Level 6, 87 Marsden Street, in Parramtta, NSW, on Oct. 26, 2015, at 11:00 a.m. ========= C H I N A ========= AOXING PHARMACEUTICAL: Swings to $5.5M Net Income in Fiscal 2015 ---------------------------------------------------------------- Aoxing Pharmaceutical Company, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income attributable to shareholders of the Company of $5.49 million on $25.48 million of sales for the year ended June 30, 2015, compared to a net loss attributable to shareholders of the Company of $8.21 million on $12.7 million of sales for the year ended June 30, 2014. As of June 30, 2015, the Company had $53.0 million in total assets, $42.97 million in total liabilities and $10.1 million in total equity. BDO China Shu Lun Pan Certified Public Accountants LLP, in Shanghai, People's Republic of China, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, stating that the Company accumulated a large deficit and a working capital deficit that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/msw40L About Aoxing Aoxing Pharmaceutical Company, Inc., has one operating subsidiary, Hebei Aoxing Pharmaceutical Co., Inc., which is organized under the laws of the People's Republic of China. Since 2002, Hebei Aoxing has been engaged in developing narcotics and pain management products. In 2008 Hebei Aoxing supplemented its product lines by acquiring Shijiazhuang Lerentang Pharmaceutical Company, Ltd., a specialty pharmaceutical company focusing on herbal pain related therapeutics. The Company owns 95% of the equity in Hebei Aoxing. CHINA GINSENG: Incurs $3.9 Million Net Loss in Fiscal 2015 ---------------------------------------------------------- China Ginseng Holdings, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.90 million on $272,600 of revenue for the year ended June 30, 2015, compared with a net loss of $4.76 million on $2.61 million of revenue for the year ended June 30, 2014. As of June 30, 2015, the Company had $8.34 million in total assets, $18.0 million in total liabilities, and a $9.67 million total stockholders' deficit. Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company had net losses of $3.90 million and $4.76 million for the years ended June 30, 2015 and 2014, respectively, an accumulated deficit of $18.1 million at June 30, 2015 and a working capital deficit of $16.5 million at June 30, 2015, and there are existing uncertain conditions the Company faces relative to its ability to obtain working capital and operate successfully. These conditions raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/5jSVrt About China Ginseng Changchun City, China-based China Ginseng Holdings, Inc., conducts business through its four wholly-owned subsidiaries located in China. The Company has been granted 20-year land use rights to 3,705 acres of lands by the Chinese government for ginseng planting and it controls, through lease, approximately 750 acres of grape vineyards. However, recent harvests of grapes showed poor quality for wine production which indicates that the vineyards are no longer suitable for planting grapes for wine production. Therefore, the Company has decided not to renew its lease for the vineyards with the Chinese government upon expiration in 2013 and, going forward, it intends to purchase grapes from the open market in order to produce grape juice and wine. PARKSON RETAIL: Fitch Lowers IDR to 'B+'; Removes from Watch Neg. ----------------------------------------------------------------- Fitch Ratings has downgraded China-based department store operator Parkson Retail Group Limited's Long-Term Issuer Default Rating and senior unsecured rating to 'B+' from 'BB-'. The ratings have been removed from Rating Watch Negative. Fitch has assigned a Negative Outlook to the ratings and a Recovery Rating of 'RR4' to the senior unsecured rating. The downgrade reflects the continued deterioration in Parkson's core business and its rising leverage despite the cancellation of the proposed Parkson Retail Asia Limited (PRA) acquisition. The Negative Outlook reflects the uncertainty over when same-store sales will stabilize. KEY RATING DRIVERS Declining Sales and Profitability: Parkson's fundamentals have steadily deteriorated over the past three years due to weaker consumer spending and competition from other retail formats, such as e-commerce and shopping malls. Same-store sales declined 4.6% and same-store profits fell 25% yoy in 1H15. Of the 60 stores in operation, 23 were unprofitable in 1H15. Parkson's heavy reliance on rented properties has exacerbated the impact of the sales decline on margins. EBITDA has fallen to 2%-3% of Gross Sales Proceeds, compared with EBITDA margins in the low teens for most department store operators rated by Fitch. High Leverage: Fitch expects Parkson's payables-adjusted FFO net leverage to remain elevated at more than 6.3x, which is not in line with levels expected for a 'BB' category rating. Parkson's minority shareholders at an extraordinary general meeting on 12 October 2015 rejected a proposed acquisition of a stake in PRA for CNY1.05bn. The cancellation of the deal is a marginal positive; but it does not offset the decline in Parkson's core operations in China. Share Buybacks Continue: Parkson has been repurchasing shares through the Hong Kong Stock Exchange since 2013. Over the past three years, the company has bought back more than 4% of total shares outstanding using cash, and it has so far in 2015 already spent CNY52m on share buybacks. Adequate Liquidity: Parkson's liquidity position remains healthy, despite rising leverage. Liquidity is supported by its cash- generating concessionaire business and CNY3.9 bil. in cash and investments in principal-guaranteed deposits as of June 2015. USD500m of bonds mature in 2018 and its bank borrowings are fully secured with time deposits and principal-guaranteed deposits. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Gross sales proceeds decline by 1.5% a year in 2016-18 -- EBITDA margin of 11%-12% in 2016-18 -- CNY900m capex in 2015 and CNY500m a year thereafter RATING SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Same-store sales growth stabilises or turns positive on a sustained basis Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- FFO fixed-charge coverage at less than 1.3x on a sustained basis -- Payables adjusted (adjusted net debt plus 85% trade payables and customer deposits) FFO net leverage sustained above 7x -- Continued deterioration in same-store sales and margins ========= I N D I A ========= ADITI CREATION: CRISIL Suspends B Rating on INR80MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Aditi Creation (AC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable Long Term Loan 40 CRISIL B/Stable Proposed Long Term Bank Loan Facility 79.1 CRISIL B/Stable The suspension of rating is on account of non-cooperation by AC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AC is yet to provide adequate information to enable CRISIL to assess AC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Established in 2002, AC manufactures RMG at its facility in Tirupur (Tamil Nadu). The operations of the firm are managed by Mr. Bharath Bhushan Gogia and Vinit Kumar Gogia. AGARWALA'S POLYTRADE: Ind-Ra Suspends BB- Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Agarwala's Polytrade Private Limited's (APPL) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook to the suspended category. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for APPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary APPL' ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR170 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR30 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' ARTEFACT PROJECTS: ICRA Assigns C Rating to INR18cr Loan -------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]C to the INR18.00 crore of fund based facilities of Artefact Projects Limited. ICRA has also assigned a short term rating of [ICRA]A4 to the INR5.00 crore non-fund based facility of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Limits 18.00 [ICRA]C assigned Non-Fund Based Limit 5.00 [ICRA]A4 assigned The assigned ratings of Artefact Projects Limited (APL) are constrained due to stressed liquidity profile of the company owing to sluggish receivables, with more ~70-75% of the debtors outstanding for more than nine months. The cash flow position of the company has remained under pressure on account of delays in realization of receivables, thereby resulting in instances of delay in debt servicing in the past. The ratings also take into account the moderate scale of operations, subdued debt protection metrics and modest return indications on account of elongated working capital cycle. Besides, the company has extended substantial financial support to its subsidiary in the form of investment and corporate guarantee, which limits the financial flexibility of the company. ICRA also notes that the company derives 70% of its revenue from road sector, thereby resulting into high sector concentration risk and competition in the industry from established local, multinational and boutique engineering consultancy firms, which exerts pressure on profitability. The ratings, however, take into account the long standing experience of the promoters in the industry, healthy order book position, which provides revenue visibility in near term and on- going government thrust towards infrastructure development, which is likely to support the revenue growth. Incorporated in 1988, Artefact Projects Limited (APL) is an integrated infrastructure services company providing consulting services across core infrastructure sectors- Highways, Airports & Urban Development Projects. Its range of services include, but not limited to, DPR preparation, project funding and financial closure services, construction supervision and project management services, structuring of project contracts for departmental funding or PPP Model, conducting economic and financial viability analysis and township sector services. At present the total strength of employees is 280, which comprises of technical experts and professional. Recent Results: The company has recorded a net profit after tax of INR0.90 crore on an operating income of INR19.87 crore in the financial year 2014-15 (Provisional). ASR MET: ICRA Assigns B+ Rating to INR35cr Cash Credit ------------------------------------------------------ ICRA has assigned the rating of [ICRA]B+ to INR55.00 crore long term fund based facilities of ASR Met Tech Private Limited. ICRA has also assigned the rating of [ICRA]B+/[ICRA]A4 to the INR27.63 crore long term and short term facilities (sublimit to long term rating) of AMTPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 35.00 [ICRA]B+ assigned Term Loan 20.00 [ICRA]B+ assigned One time FLC (sublimit to term loan) (11.63) [ICRA]B+/A4 assigned ILC/FLC (sublimit to cash credit) (10.00) [ICRA]A4 assigned PC/FBP/FCBP/FCBD (sublimit to cash credit) (6.00) [ICRA]A4 assigned The assigned ratings are constrained by the risks associated with execution and implementation of the Greenfield project and risks associated with the stabilization of the operations post commissioning of the plant. The ratings also takes into account possible stress on debt servicing ability in case ramp up of cash flows is lower than anticipated or delays in commencement of operations since the project is presently at a nascent stage as well as the expected competitive pressures that the company would face from other established domestic players. ICRA further takes note that profitability would remain vulnerable to fluctuation in the prices of key raw materials, given high inventory levels would be required to be maintained by the company. The ratings, however, favorably factor in the longstanding experience of the promoters in the steel industry and its established dealership in domestic and international market. Incorporated in January 2013, ASR Met Tech Private Limited (AMTPL) is setting up a green field project for manufacturing of Stainless Steel pipes and tubes having production capacity of 10,200 MTPA at Ahmedabad, Gujarat. The product portfolio would include pipes having outer diameter (OD) ranging from 6 mm to 114 mm and thickness of 0.5 mm to 6 mm. The commercial production of Seamless pipe and tubes is expected to start from April 2016 onwards. AMTPL is promoted by Aggarwal group which has strong presence in the steel industry through its various companies such as ASR Multimetals Private Limited engaged in manufacturing of Sponge Iron, TMT bars, Structural steel products etc. Apart from the steel industry, the group is also involved in importing and trading of various agro products. The group also has an established dealer's network in the domestic as well as international markets. BAJAJ BASMATI: CRISIL Cuts Rating on INR380MM Cash Loan to D ------------------------------------------------------------ CRISIL has downgraded its rating on the long-term bank facilities of Bajaj Basmati Pvt Ltd (BBPL) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 380 CRISIL D (Downgraded from 'CRISIL B+/Stable') Term Loan 190 CRISIL D (Downgraded from 'CRISIL B+/Stable') Warehouse Financing 100 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects BBPL's delays in meeting term loan obligations. BBPL's financial risk profile has weakened because of increase in gearing and decline in net worth to 3.06 times and INR444 million, respectively, as on March 31, 2015, from 2.03 times and INR475 million, respectively, a year earlier. CRISIL believes the financial risk profile will remain weak over the medium term of account of modest net cash accrual. BBPL has large working capital requirements, and its operating margin is susceptible to changes in government regulations, extent of rainfall, and volatility in raw material prices. The company has a weak financial risk profile because of high gearing and weak debt protection metrics. However, it benefits from promoters' extensive experience in rice milling and established relationships with customers. BBPL was incorporated in April 2010 by Mr. Krishan Bajaj and Mr. Sahil Bajaj. It mills and processes paddy into rice, rice bran, broken rice, and husk. Its two rice mills, in Jalalabad and Muktsar (both in Punjab), have combined installed paddy milling capacity of 17 tonnes per hour. BATRA LOGISTICS: ICRA Reaffirms B+ Rating on INR7.55cr Loan ----------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR7.55 Crore bank facilities of Batra Logistics Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term bank facilities 7.55 [ICRA]B+ ; Reaffirmed ICRA's rating continues to reflect the seasonality to which BLPL's cash flows are exposed, given the company's dependence on transportation of molasses. ICRA also takes into account the high customer concentration risk faced by the company, as three customers account for most of its sales. The company's liquidity was stretched in FY2014-15 on account of increased credit period offered to its customers (which also include group entities), which necessitated increased reliance on unsecured borrowings. The above concerns are partially mitigated by the extensive experience of the promoters in the transportation business and BLPL's long standing relationships with its clients. Further the fact that BLPL accounts for a high proportion of its customers' total transportation needs, provides comfort in terms of the quality of service offered by BLPL. Going forward, the ability of the company to diversify its customer profile, improvement in the liquidity position through infusion of long term funds and maintaining adequate accruals, will be the key rating sensitivities. BLPL was incorporated as a private limited company in April 2011, by the merger of three firms owned by the Batra family, headed by Mr Vinay Batra. The Batra family, through its various firms, has been engaged in the transportation of molasses for the last 5 decades. BLPL is engaged in transportation of molasses mainly within Uttar Pradesh, and has a fleet of 101 tankers with an estimated transportation capacity of 3.5 lakh quintals per month. Recent Results BLPL reported a net profit of INR0.04 crore on an operating income of INR22.54 crore in FY2014-15, as against a net profit of INR0.41 Crore on an operating income of INR24.22 Crore in the previous year. BHASKAR POULTRIES: CRISIL Suspends D Rating on INR65.2MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Bhaskar Poultries (BP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13.1 CRISIL D Long Term Loan 6.7 CRISIL D Proposed Cash Credit Limit 65.2 CRISIL D Proposed Long Term Bank Loan Facility 65.0 CRISIL D The suspension of rating is on account of non-cooperation by BP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BP is yet to provide adequate information to enable CRISIL to assess BP'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' BP, established in 1996 as a partnership firm, is promoted by Mr.T B G Tilak, his son Mr. T U Bhaskar, and other family members. The firm is engaged in the poultry farming business. BP has farms in Aganampudi, Bendapudi and Pendurthi in Visakhapatnam (Andhra Pradesh). CARREG COMMODITIES: CRISIL Assigns B Rating to INR70MM Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Carreg Commodities Pvt Ltd (Carreg). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Overdraft Facility 70 CRISIL B/Stable Proposed Letter of Credit 5 CRISIL A4 Cash Credit 15 CRISIL B/Stable Letter of Credit 10 CRISIL A4 The ratings reflect Carreg's modest scale of operations in a highly fragmented industry, and average financial risk profile because of small net worth. These weaknesses are partially offset by promoter's extensive experience in the commodities trading business, and moderate working capital cycle. Outlook: Stable CRISIL believes Carreg will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the company generates larger-than-expected accrual, while maintaining working capital cycle and capital structure. Conversely, the outlook may be revised to 'Negative' if liquidity deteriorates on account of lengthening of working capital cycle, or lower-than-expected accrual, or large debt-funded capital expenditure. Carreg, incorporated in November 2010, trades in diverse commodities such as coal, rice, and spices. It is promoted by Ms. Jacintha Panickeer, and is based in Mangalore (Karnataka). CNN MINERALS: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has suspended CNN Minerals Private Limited's (CNN) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for CNN. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary CNN's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/ Negative -- INR80 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/ Negative -- INR60 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' DEVAKI FOUNDATIONS: CRISIL Suspends 'D' Rating on INR100MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Devaki Foundations (DF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL D Proposed Long Term Bank Loan Facility 50 CRISIL D The suspension of ratings is on account of non-cooperation by DF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DF is yet to provide adequate information to enable CRISIL to assess DF'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' DF, set up in October 2012, is engaged in wholesaling of thermo- mechanically-treated (TMT) bars and steel structural products. FAHIM TANNING: CRISIL Suspends 'D' Rating on INR30MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Fahim Tanning Company (FTC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL D Letter of Credit 12.5 CRISIL D Term Loan 7.5 CRISIL D The suspension of ratings is on account of non-cooperation by FTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, FTC is yet to provide adequate information to enable CRISIL to assess FTC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1982, FTC is engaged in the processing of raw hides into semi-finished and finished leather. GANGA PLASTIC: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has suspended Ganga Plastic Products Private Limited's (GPPPL) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for GPPPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary GPPPL's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR60 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR60 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' HERMAN PROPERTIES: CRISIL Suspends B+ Rating on INR250MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Herman Properties Limited (HPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 50 CRISIL B+/Stable Term Loan 250 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by HPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HPL is yet to provide adequate information to enable CRISIL to assess HPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 1986, HPL is promoted and managed by Mr. K P S Kukreja and Mr. J P S Kukreja. The company has constructed residential, industrial, commercial complexes and schools. It is currently developing residential projects at Kurukshetra (Haryana) and Ambala (Haryana). It also has upcoming projects at Meerut (Uttar Pradesh) and Panipat (Haryana). HOTEL SWOSTI: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Hotel Swosti Pvt. Ltd. (HSPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The agency has also assigned the company's bank loans these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term loan 48.45 'IND BB'/Stable Fund-based working 7.50 'IND BB'/Stable capital limit KEY RATING DRIVERS The ratings reflect HSPL's moderate scale of operations as well as credit profile. According to the provisional financials for FY15, revenue was INR79.98 mil., net financial leverage (total Ind-Ra adjusted net debt/operating EBITDAR) was 1.1x and interest coverage (operating EBITDA/gross interest expense) was 3.6x. The ratings also factor HSPL moderate liquidity position as reflected by its average maximum working capital limit utilization of 86% during the 12 months ended September 2015. The ratings, however, draw comfort from the three decades of experience of one of the promoters in the hospitality industry. RATING SENSITIVITIES Positive: A substantial increase in the scale of operations along with a sustained improvement in the EBITDA interest coverage could lead to a positive rating action. Negative: Sustained deterioration in the EBITDA interest coverage could lead to a negative rating action. COMPANY PROFILE Incorporated in 1981 HSPL operates a three star hotel - Hotel Swosti - in Bhubaneswar, Odisha. It started operations from 1984. The hotel is managed by Jitendra Ku. Mohanty, Bijendra Ku. Mohanty, Chiranjiv Mohanty, Bipasa Mohanty, Sasmita Mohanty and Chittaranjan Jana. IMAGE INDUSTRIES: CRISIL Suspends B+ Rating on INR60MM Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Image Industries India Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Term Loan 12.4 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by IIIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, IIIPL is yet to provide adequate information to enable CRISIL to assess IIIPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' IIIPL was incorporated in 1986 as Warana Food Products Private Limited, by Mr. Mr. Chitrasen Gulave and his son, Mr. Girish Gulave. The company is engaged in manufacturing of tea and coffee premixes, malt based food and milk powder and trading of milk and milk products. The company is based in Kolhapur (Maharashtra). J. RAMACHANDRAIAH: CRISIL Suspends D Rating on INR70MM LT Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of J. Ramachandraiah (JRC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 70 CRISIL D The suspension of ratings is on account of non-cooperation by JRC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JRC is yet to provide adequate information to enable CRISIL to assess JRC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' JRC was set up by Mr. J. Ramachandriah and his family members. The firm has constructed a warehouse and given them on lease in Chennai for the purpose of earning lease rentals. JAYABHERI AUTOMOTIVES: CRISIL Reaffirms B- Rating on INR150M Loan ----------------------------------------------------------------- CRISIL's rating on the bank facilities of Jayabheri Automotives Private Limited (JAPL) continue to reflect its stretched liquidity (with cash accruals that are inadequate to service maturing term debt) and weak financial risk profile, with negative net worth and below-average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B-/Stable (Reaffirmed) Term Loan 115 CRISIL B-/Stable (Reaffirmed) The rating also factors in the exposure to cyclicality in economy, and to intense competition in the automobile dealership business. These rating strengths are partially offset by the continued funding support the company receives from its promoters, the efficient working capital management, and low exposure to inventory and debtor risks. Outlook: Stable CRISIL believes JAPL will continue to benefit over the medium term from the funding support of the promoters. The outlook may be revised to 'Positive' if a substantial and sustainable increase in the scale of operations and profitability, or a sizeable equity infusion by the promoters strengthens the key credit metrics. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability, or a significant increase in debt caused most likely by a stretch in working capital cycle. Incorporated by the Duggirala and the Maganti families in 2011, JAPL is an authorised dealer for Maruti Suzuki India Ltd's passenger cars and multi-utility vehicles. The company operates three car showrooms and four workshops in Visakhapatnam, Vizianagaram, and Narsipatnam (all in Andhra Pradesh). JOHARILAL AGARWALA: Ind-Ra Suspends 'IND BB-' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has suspended Joharilal Agarwala Sales Pvt Ltd's (JASPL) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for JASPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary JASPL' ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR230 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR50 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' JYOTI VINCOM: ICRA Assigns B- Rating to INR11cr Term Loan --------------------------------------------------------- ICRA has assigned an [ICRA]B- rating to the INR11.00 crore term loan and INR5.30 crore working capital facilities of Jyoti Vincom Private Limited. ICRA has also assigned [ICRA]B- and [ICRA]A4 ratings to an untied limit of INR0.20 crore of JVPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- Term Loan 11.00 [ICRA]B- assigned Fund Based Limit- Cash Credit 4.50 [ICRA]B- assigned Fund Based Limit- Working Capital Loan 0.80 [ICRA]B- assigned Untied Limit 0.20 [ICRA]B-/[ICRA]A4 assigned The assigned ratings take into consideration JVPL's small scale of current operations, the weak financial profile of the company characterized by net losses suffered during the past two years, leading to a depressed level of coverage indicators and a high working capital intensity of operations impacting the company's liquidity position on account of advances extended to the farmers coupled with counter party risk arising from loans extended to farmers by JVPL, which may lead to delinquency, if prices of the stored material fall to a low level. ICRA also notes that the company has significant debt service obligations in near to medium term, which is likely to exert pressure on its cash flows. The ratings, however, favourably consider the experience of the promoters in the cold storage business for more than three decades and the locational advantage JVPL enjoys by way of its presence in West Bengal, a state with large potato production. JVPL was incorporated in February, 2009 by the members of the Kundu family based in West Bengal. The company is engaged in providing cold storage facility to potato farmers and traders on a rental basis having a storage capacity of 19,668 MT. The company also provides a multipurpose storage facility of 5,010 MT for storing different variety of fruits and vegetables like carrot, apples, orange, etc. The cold storage unit is located at Hooghly, West Bengal covering an area of around 4.06 acres. Narayan Cold Storage Private Limited, a company operating under the same management, is engaged in the cold storage business of storing potato and is rated at [ICRA]B. Recent Results In 2014-15, the company reported a net loss of INR0.36 crore on an operating income of INR3.33 crore, as compared to a net loss of INR0.36 crore on an operating income of INR0.11 crore in 2013-14. K. L. RATHI: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned India's K. L. Rathi Steels Limited (KLRSL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. Ind-Ra has also assigned KLRSL's bank facilities these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Fund-based limit 400.00 'IND BB'/Stable and 'IND A4+' Non-fund-based limit 15.00 'IND A4+' KEY RATING DRIVERS The ratings reflect KLRSL's weak credit metrics on the back of thin profitability margins. In FY15, interest coverage (operating EBITDA/gross interest expense) was 1.09x, net financial leverage (total Ind-Ra adjusted debt/operating EBITDAR) was 10.35x and EBITDA margins were 0.61%. KLRSL is present in a highly fragmented and intensely competitive steel industry due to which it cannot pass on the raw material price hike to customers. The ratings benefit from the fact that KLRSL's scale of operations remains comfortable despite a fall in its revenue to INR6,707.13 mil. in FY15 from INR7,744.53 mil. in FY14 led by falling capacity utilisation as well as average sales realisations in the backdrop of a slowdown in steel demand. KLRSL's liquidity position is satisfactory as evident from 72.57% average working capital utilisation during the 12 months ended August 2015. The ratings benefit from the infusion of unsecured loans of INR65 mil. by KLRSL's promoters to support its debt servicing in FY16. The ratings are also supported by the company's 40-year long operational track record and its strong presence in Delhi NCR with well-established brand name ThermoQuench. KLRSL's promoters have over three-decade-long experience in the steel industry. RATING SENSITIVITIES Negative: Deterioration in net working capital or decline in profitability leading to deterioration in overall credit metrics will be negative for the ratings. Positive: An improvement in the profitability leading to improved credit metrics could lead to a positive rating action. COMPANY PROFILE KLRSL was incorporated in 1972 to take over the assets of erstwhile Rathi Steel Rolling Mills, a family enterprise established in 1942 at Shahdara, Delhi. It manufactures steel rods, bars & wires. Its 2,00,000 metric ton per annum facility is located in Greater Noida, Guatam Buddha Nagar for manufacturing high strength deformed bars and thermo mechanically treated bars of sizes 8mm to 32mm wire rods which it sells under the brand Rathi registered in India. KRISHNA TEXTILE: CRISIL Suspends D Rating on INR53.3MM LT Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Krishna Textile Process (KTP; part of the Sudhama group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL D Cash Credit 30 CRISIL D Long Term Loan 26.2 CRISIL D Proposed Long Term Bank Loan Facility 53.3 CRISIL D Standby Line of Credit 1.5 CRISIL D The suspension of ratings is on account of non-cooperation by KTP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KTP is yet to provide adequate information to enable CRISIL to assess KTP'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1978 by Mr. P Gopalakrishnan, Sudhama manufactures knitted garments and exports the same to European countries. Set up in 2002, KTP is involved in dyeing of polyester, cotton and viscose fabrics. LAKSHMI COTTON: CRISIL Reaffirms B Rating on INR50MM Cash Loan -------------------------------------------------------------- CRISIL rating on the long-term bank facility of Lakshmi Cotton Traders (LCT) continues to reflect LCT's modest scale of operations in the intensely competitive and highly fragmented cotton trading industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable (Reaffirmed) The rating also reflects LCT's below-average financial risk profile, marked by low net worth, high total outside liabilities to tangible net worth (TOLTNW) ratio, and weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of LCT's promoters in the cotton trading industry. Outlook: Stable CRISIL believes LCT will continue to benefit over the medium term from its promoters' extensive experience in cotton trading. The outlook may be revised to 'Positive' if there is a substantial and sustained improvement in the revenue and profitability margins, or if a sizeable equity infusion by the promoters strengthens the capital structure considerably. Conversely, the outlook may be revised to 'Negative' if a steep decline in profitability, or any large, debt-funded capital expenditure or stretch in its working capital cycle weakens the key credit metrics. Set up in 1992, LCT trades in raw cotton and cotton lint. Based out of Guntur, the firm is promoted by Mr. S. Koteswara Rao and his family. M.D. COTTON: ICRA Reaffirms B+ Rating on INR6.0cr Cash Loan ----------------------------------------------------------- ICRA has reaffirmed the [ICRA]B+ rating to the INR6.00 crore long term fund based cash credit facility of M.D. Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 6.00 [ICRA]B+ reaffirmed The reaffirmation of rating continues to take into account MDCI's modest size of operations with a de-growth of 25% reported in the operating income during FY15 as well as the weak financial profile characterized by low profitability levels, owing to the limited value addition in the business and the highly competitive and fragmented industry structure; stretched capital structure and weak coverage indicators. The rating continues to remain constrained by the vulnerability of the firm's profitability to raw material prices which are subject to seasonality and crop harvest; and the regulatory risks with regard to MSP fixed by GoI. ICRA also notes that MDCI is a partnership firm and any significant withdrawals from the capital account would adversely affect its net worth and thereby its capital structure. The rating, however, positively considers the established track record of the firm in the cotton ginning industry and the advantage the firm enjoys by virtue of its location in the cotton producing belt of Mehsana (Gujarat). Established in 2007, M.D. Cotton Industries (MDCI) is engaged in the business of ginning and pressing of raw cotton into cotton seeds and fully pressed cotton bales having a production capacity of 27.20 metric tonnes per day (MTPD) of cotton bales. The firm is also engaged in crushing of cotton seeds to obtain cotton seed oil and cotton oil cake having an intake capacity of ~47 MTPD. The manufacturing plant of the firm is located at Kadi (Mehsana) in Gujarat. The firm is promoted by Mr. Mahendra Patel along with his relatives and friends. Recent Results For the year ended March 31, 2015, M.D. Cotton Industries reported an operating income of INR40.14 crore and profit after tax of INR0.16 crore as against an operating income of INR53.30 crore and profit after tax of INR0.20 crore for the year ended March 31, 2014. MAHAVIR ORE: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has suspended Mahavir Ore & Sponge Private Limited's (MOSPL) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The agency has also migrated the 'IND BB-' rating with Negative Outlook on the company's INR75 mil. fund-based limits to 'IND BB-(suspended)'. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for MOSPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. MEGHDOOT GINNING: ICRA Revises Rating on INR30cr Loan to B ---------------------------------------------------------- ICRA has revised the long term rating assigned to the INR30.00 crore fund based cash credit facility of Meghdoot Ginning and Pressing Industries Private Limited from [ICRA]B+ to [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-Based Limits 30.00 [ICRA]B; revised from [ICRA]B+ The revision of ratings takes into account de-growth in revenue in financial year 2014-15 coupled with overall weak demand of cotton as a result of general downtrend in the economy. The ratings continue to be constrained by the firm's weak financial profile as reflected by low profitability, adverse capital structure, and weak debt coverage indicators. The ratings also take into account the low value additive nature of operations and intense competition on account of fragmented industry structure leading to thin profit margins and vulnerability of profitability to adverse fluctuations in raw material prices which are subject to seasonal availability of raw cotton and government regulations on MSP for procurement of raw cotton. The ratings however, positively factors in the long experience of the promoters in the cotton ginning and pressing business and favorable location of the plant giving it easy access to raw cotton. Incorporated in 1999, Meghdoot Ginning & Pressing Industries Pvt Ltd (MGPIPL) is engaged in ginning and pressing of raw cotton. The business is owned and managed by Mr. Anand Shah, Mr. Ajay Shah, Mr. Bharat Shah and other family members. The company's manufacturing facility is located at Karjan, in Vadodara, The company has 52 ginning machines and 1 pressing machine with processing capacity of 200 MTPD of raw cotton. Recent Results For the year ended 31st March 2015, Meghdoot Ginning and Pressing Industries Private Limited has reported (as per provisional financial statement) an operating income of INR137.59 crore and profit after tax of INR0.11 crore. MERRITRONIX PVT: CRISIL Reaffirms B+ Rating on INR20MM Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Merritronix Pvt Ltd (MPL) continue to reflect MPL's small scale of operations in the intensely competitive telecommunication equipment industry, and the company's large working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12 CRISIL A4 (Reaffirmed) Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Letter of Credit 20 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 18 CRISIL B+/Stable (Reaffirmed) Term Loan 10 CRISIL B+/Stable (Reaffirmed) The ratings of the company are also constrained on account of its below-average financial risk profile marked by small net-worth and weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of MPL's promoters in the telecommunication industry, and its established relations with customers. Outlook: Stable CRISIL believes that MPL 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 there is a substantial and sustained increase in the company's scale of operations and profitability margins, or there is a sustained improvement in its working capital cycle. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in the company's profitability margins, or significant deterioration in its capital structure caused most likely by a stretch in its working capital cycle. MPL, incorporated in 1988, manufactures accessories for telecommunication cable jointing kits. The company also provides electronics manufacturing services, which include assembling of printed circuit board, box building, system integration and testing. The company is managed by Mr. D Amarnath and based out of Hyderabad (Telangana). N.A.M. EXPRESSWAY: Ind-Ra Affirms D Rating on INR10.6BB Loans ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed N.A.M. Expressway Limited's (NAMEL) INR10.6 bil. long-term senior project bank loans at Long-term 'IND D'. KEY RATING DRIVERS The affirmation reflects NAMEL's delays in debt servicing based on the data provided by the company. The management states that the delays are mainly due to the lower-than-expected toll collection. Ramky Infrastructure Limited (Ramky) has been operating this project since the achievement of partial commencement of operations. NAMEL is equally owned by Ramky and IL&FS Transportation Networks Limited (ITNL; 'IND A'/Stable). RATING SENSITIVITIES Timely debt servicing for three consecutive months will be positive for the ratings. PROJECT PROFILE NAMEL is a special purpose company, incorporated to implement a lane expansion project under a 24-year concession from the Andhra Pradesh Road Development Corporation (APRDC). The project road is a 212.5km stretch from Narketpally to Addanki and Medarametla, and is part of the State Highway 2. The project cost of INR17,605 mil. was funded by a term loan of INR10.6 bil., sponsor equity of INR2,335.1 mil. and a government grant of INR4,670 mil. NANU RAM: ICRA Reaffirms B+ Rating on INR6.0cr LT Loan ------------------------------------------------------ ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR6.0 crore bank facilities of Nanu Ram Jindal Gum & Chemicals Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term: Fund Based Limits 6.0 [ICRA]B+; reaffirmed ICRA's rating continues to be constrained by limited experience of the promoters in guar gum industry; relatively low market share of the company in relation to the overall guar gum processing industry in the country, exposure to agro-climatic risks related to guar seed production and modest financial risk profile characterised by low profitability and weak debt coverage indicators. The revenues of the company declined by 34% in FY2015; on account of 26% decline in sales volumes as a result of subdued demand and lower realisation. The rating, however, favourably factors in the varied application of guar gum across oil exploration, textile printing, mining and food products as well as the favourable location of the company's manufacturing facility with proximity to the main guar growing belt. NPL was incorporated in April 2012 and is promoted by Mrs. Shankuntla Devi & Mr. Neeraj Jindal. The company is a manufacturer and trader of guar gum and associated products. Its manufacturing plant is located in Siwani Mandi Haryana with capacity of 5400 metric ton per annum guar splits. The company supplies guar gum split to the manufacturers of guar gum powder. Recent Results NPL reported turnover of INR34.14 crore and net profit of INR0.10 crore in FY15 against turnover of INR51.71 crore and net profit of INR0.07 crore in previous year. NATIONAL PLASTICS: CRISIL Suspends B+ Rating on INR57.5MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of National Plastics (National). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable Term Loan 57.5 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by National with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, National is yet to provide adequate information to enable CRISIL to assess National'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. Established in 1978, National manufactures Linear Low Density Polyethylene (LLDPE) water and chemical storage tanks for use in households and industries. The firm's promoters are Mr. Jayanti Patel and his wife Ms. Pushpa Patel. The firm has set up a UPVC pipes unit, which is expected to commence full production in April 2014. PRAGATI ENGINEERING: ICRA Suspends C+ Rating on INR6.5cr Loan ------------------------------------------------------------- ICRA has suspended [ICRA]C+ rating assigned to the INR6.50 crore, long term fund based facilities of Pragati Engineering Belgaum Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Pragati Engineering Belgaum Private Limited (Pragati) is a Belgaum based entity incorporated in 1996 by Mr. Suresh Bhirangi (Chairman) and his son Mr. Mahesh S Bhirangi (Managing Director) and their family members and associates. The company manufactures precision machined components and caters to machine tool manufacturers and automotive industry. The product portfolio includes automatic tool changers for machining centres, power chucking cylinders, turning attachments, piston, cylinder housing and motor plates. Additionally, the company provides labour to its clients for processing of certain components used in manufacture of CNC machines against which it bills labour charges. The major customer to which Pragati supplies its product is Pragati Automation Private Limited (PAPL) which is an associate company of which the majority stake is held by some of the promoters of Pragati. PAPL, based in Bengaluru (Karnataka), primarily manufactures tool turrets, automatic tool changers, and power- chucking cylinders. PRAMUKH ALLOYS: ICRA Suspends B- Rating on INR7.30cr Loan --------------------------------------------------------- ICRA has suspended the [ICRA] B- rating assigned to the INR7.30 crore long term fund based facilities of Pramukh Alloys Pvt Ltd. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Incorporated in March 2012, Pramukh Alloys Private Limited (PAPL) is engaged in manufacturing of MS angles and MS channels from metal scrap. The manufacturing facility is located at Vijapur district of Gujarat, with an annual installed capacity of 10,000 MTPA (Metric Tonnes Per Annum). The company commissioned commercial operations at the newly set up plant from 15th April 2013 onwards. The promoters of the company Mr Mukesh Chaudhary and Mr. Kanu Chaudhary have been associated with the commercial and residential housing construction for over a decade, and at present the promoters are executing three residential and commercial projects at Gandhinagar, Gujarat through other group concerns. R R OOMERBHOY: CRISIL Reaffirms 'D' Rating on INR123.3MM Loan ------------------------------------------------------------- CRISIL's rating on the bank facilities of R R Oomerbhoy Pvt Ltd (RRO) continues to reflect delays by RRO in servicing its debt obligations. The delays have been caused by the company's weak liquidity, driven by low cash accruals and large working capital requirements, resulting in high utilisation of bank limits. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 123.3 CRISIL D (Reaffirmed) Term Loan 16.7 CRISIL D (Reaffirmed) RRO also has a below-average financial risk profile marked by high gearing and weak debt protection metrics, and is exposed to intense competition in the edible oil industry. However, the company benefits from its promoters' extensive industry experience and their fund support. RRO was incorporated in 1992 by Mr. Rashid Oomerbhoy, his son Mr. Riyad Oomerbhoy and his daughter, Ms. Roohi Oomerbhoy. RRO refines edible oils and trades in international pasta and cheese brands. RIDDHI SIDDHI: ICRA Reaffirms B Rating on INR40cr LT Loan --------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B on the INR27.501 crore fund-based facilities (enhanced from INR8.0 crore) and INR40.00 crore non fund-based bank facilities (enhanced from INR15.64 crore) of Riddhi Siddhi Associates. ICRA has assigned its short term rating of [ICRA] A4 to the INR15.0 crore short term fund-based facilities of the firm. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund- based bank facilities 27.50 [ICRA]B; reaffirmed Long-term non fund-based bank facilities 40.00 [ICRA]B; reaffirmed Short-term fund- based bank facilities 15.00 [ICRA]A4;assigned ICRA's ratings take into account the experience of RSA's management, of around a decade, in the royalty collection contract business. While the firm was able to achieve requisite collection volumes during FY15 to meet the guaranteed royalty payments and cover its operational expenses, the surplus collections were low, which resulted in thin operating profit margins of 0.89%. The low profitability was exacerbated by seasonal volatility in collections, given that the royalty installments are paid by the firm to the government as per a fixed schedule. Further, the business is characterized by high capital requirements, which are on account of upfront payment of security deposits, as well as working capital to bridge the cash flow mismatch between actual royalty collection and royalty paid to the government. High capital requirements, coupled with low profitability result in weak return indicators as reflected in RoCE of 2.9% and RoNW of 0.25% in FY15. Moreover, the revenue visibility for the firm continues to remain limited, given the short duration of the contracts in hand and the unpredictability in securing new contracts. Given the fragmented nature of the royalty contracting business, low entry barriers and, resultant high competition in the sector and susceptibility to government regulations, the firm's operating margins have been subdued. Further, ICRA has also taken into consideration RSA's constitution as a partnership firm, which exposes it to capital withdrawal risks as well as risk of dissolution. Going forward, the ability of the firm to secure new contracts to maintain revenue visibility, and achieve healthy volumes along with improving profitability metrics, will remain the key rating sensitivities. Formed by Mr. Mahendra Kumar Tak, his family members and business associates in 2009, RSA is an Udaipur (Rajasthan) based partnership firm. The firm commenced operations as a contractor for royalty collection for sand mining and granite mining in Rajasthan. Recently, the firm has also entered into contracts for toll fee collections from road projects in Rajasthan. The promoters have been engaged in similar contracts for royalty collection, toll collection, etc for government departments since 2003. Recent Results RSA reported, on a provisional basis, an operating income (OI) of INR172.42 crore and a profit after tax (PAT) of INR1.10 crore in FY15, as compared to an OI of INR166.59 crore and a PAT of INR0.07 crore in the previous year. S.B. ENTERPRISES: Ind-Ra Assigns IND BB- Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned S.B. Enterprises (SBE) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The agency has also assigned SBE's bank loans these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Fund-based working 20 Long-term 'IND BB-'/Stable capital limit and Short-term 'IND A4+' Non-fund-based 40 Short-term 'IND A4+' facility KEY RATING DRIVERS The ratings factor in SBE's small scale of operation with top line of INR165.78 mil., according to the provisional financials for FY15. SBE has high susceptibility to government regulation; any adverse change in the policy could hamper its operations severely. Liquidity position is tight with around 97% of maximum average utilization of fund-based working capital limits during the 12 months ended August 2015. The ratings are constrained by the proprietorship structure of the organization. The ratings benefit from SBE's strong EBITDA margins and credit metrics In FY15, EBITDA margins stood at 6.19%, EBITDA at INR10.26 mil., gross coverage at 4.16x and net leverage at 2.42x. The ratings are also supported by SBE's established track record of over a decade of business operations. RATING SENSITIVITIES Negative: Significant EBITDA deterioration leading to a decline in the credit metrics will be negative for the ratings. Positive: Substantial revenue growth while maintaining the credit and liquidity profile will be positive for the ratings UNIT PROFILE Established in 2004, SBE is into contract-based construction work, mainly relating to water supply projects such as pipe line erection and commissioning. It is also involved into civil construction work. SBE is an AA class registered contractor of Public Health Engineering Department, Rajasthan. SELLIAMMAN CONSTRUCTIONS: CRISIL Suspends B Rating on INR80M Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Selliamman Constructions Pvt Ltd (SCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 Cash Credit 80 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCPL is yet to provide adequate information to enable CRISIL to assess SCPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' SCPL was set up in 2007 in Bhavani (Tamil Nadu) by Mr. K Sreerangan. It undertakes civil construction works, mainly concreting activities related to road construction and maintenance such as formation, widening, rehabilitation, and strengthening, and construction of small bridges, for the governments of Karnataka and Tamil Nadu. SENTHIL ANDAVAR: CRISIL Suspends B Rating on INR33.4MM Term Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Senthil Andavar Modern Rice Mill (SAMRM). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable Proposed Term Loan 33.4 CRISIL B/Stable Term Loan 1.0 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SAMRM with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SAMRM is yet to provide adequate information to enable CRISIL to assess SAMRM'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1999 as a proprietorship firm, SAMRM is engaged in milling and processing of paddy into rice, rice bran, broken rice, and husk. SHAJAHANS JEWELLERS: CRISIL Suspends B Rating on INR200MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Shajahans Jewellers (SJ). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 200 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SJ with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SJ is yet to provide adequate information to enable CRISIL to assess SJ'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Established by Mr. H.Shahjahan, as a proprietary concern in 1998, SJ operates a gold jewellery retail showroom in Chennai (Tamil Nadu). SHANKER COTGIN: CRISIL Reaffirms B+ Rating on INR60MM Cash Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Shanker Cotgin Industries (SCI) continues to reflect SCI's modest scale of operations in the fragmented cotton industry and susceptibility of profitability to volatility in cotton prices. The rating also factors in the firm's below-average financial risk profile because of modest net worth, high gearing, and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of SCI's partners and their funding support. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable (Reaffirmed) Proposed Cash Credit Limit 20 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes SCI will continue to benefit over the medium term from partners' extensive industry experience and funding support. The outlook may be revised to 'Positive' if high cash accrual or substantial capital infusion leads to a better capital structure. Conversely, the outlook may be revised to 'Negative' if financial risk profile, particularly liquidity, deteriorates because of low cash accrual, large working capital requirement, or debt-funded capital expenditure (capex). Update SCI's revenue reduced to INR360 million in 2014-15 (refers to financial year, April 1 to March 31) from INR692 million in the previous year due to low realisations from cotton. However, it sustained operating profitability at previous year's level, 1.5- 2.0 per cent, in 2014-15. The firm's revenue for the six months ended September 2015 was INR100 million, and is expected to be INR300-400 million for 2015-16. CRISIL believes SCI will sustain its operating margin over the medium term. Financial risk profile is driven by modest net worth, high gearing, and below-average interest coverage ratio. Gearing and net worth were 5.12 times and INR14 million, respectively, as on March 31, 2015. Gearing is expected to improve gradually over the medium term due to absence of debt-funded capex. SCI's interest coverage ratio was 1.29 times for 2014-15, and is expected to remain at a similar level over the medium term. The firm prudently manages working capital cycle, reflected in gross current assets of 86 days. It procures raw cotton from farmers and local mandis in Sirsa, which offer credit of 4 days to the firm and charge penal interest in case of delay in payments. SCI offers credit of 8 days to customers and charges interest for delays. The firm's receivables remain at 8-10 days. Inventory was 15-20 days as on March 31, 2015. SCI has low cash accrual against nil debt obligation, and high bank limit utilisation, which was at an average of 92 per cent for the six months ended September 2015. The firm's accrual will be INR2 million against nil debt obligation in 2015-16. Also, liquidity is backed by need-based funds from partners. SCI is a partnership firm established in 2005. It gins and presses cotton and extracts cotton oil at its unit in Sirsa (Haryana). The firm is owned and managed by Mr. Ved Prakash Gandhi and his family members. SHIVAM COTTON: ICRA Reaffirms B+ Rating on INR12cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed the [ICRA]B+ rating to the INR12.00 crore long-term fund based cash credit facility (enhanced from INR9.70 crore) of Shivam Cotton Industries. ICRA has assigned the long term rating of [ICRA]B+ to the INR2.29 crore term loan facility and withdrawn the short-term rating of [ICRA]A4 to the INR0.00 crore short term fund based limit (reduced from INR0.25 crore) of SCI. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based-Cash Credit 12.00 [ICRA]B+ reaffirmed Long Term Fund Based-Term Loan 2.29 [ICRA]B+ assigned The ratings continue to remain constrained by the firm's relatively modest scale of cotton ginning and seed crushing operations and the de-growth in operating income witnessed during FY 2015 owing to the volatility in cotton prices during the year. The ratings also consider the vulnerability of firm's profitability to movements in cotton prices which are subject to seasonality and crop harvest as well as the regulatory risk with regard to imposition of MSP. The ratings also take into account the firm's weak financial risk profile characterized by low profitability margins owing to the limited value addition and highly competitive & fragmented industry structure due to low entry barriers, adverse capital structure and high working capital intensity. The ratings also consider adverse potential impact on net worth and gearing levels in case of any substantial withdrawal from capital account given the constitution as a partnership firm. The rating however continues to favourably factor in the stable demand outlook for cotton and its derivative products and the favourable location of the firm's plant with respect to raw material procurement. ICRA also positively considers the long standing experience of the promoters in the cotton ginning and cottonseed crushing industry and the improvement in profitability during FY 2015. Shivam Cotton Industries (SCI) was established in the year 1998 as a partnership firm and is engaged in ginning, pressing of raw cotton and crushing of oil seed. The firm's manufacturing facility is located at Karjan, Gujarat and is equipped with 36 ginning and 1 press with a total production capacity of 300 bales per day or 51 MTPD and 10 expellers with capacity of crushing 8571 MTPA of cottonseeds. SCI is promoted by Mr. Vikram Patel, Mr. Shailesh Patel and other members of the Patel family who have over fifteen years of experience in the cotton ginning, pressing and cottonseed crushing industry. Recent Results During FY 2015, the firm reported an operating income of INR70.01 crore and profit before tax of INR0.76 crore as against operating income of INR84.76 crore and profit before tax of INR0.62 crore in FY 2014. SHIVSHAKTI BARRELS: CRISIL Assigns B Rating to INR45MM Cash Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Shivshakti Barrels Pvt Ltd (SBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 1.5 CRISIL B/Stable Bank Guarantee 13.5 CRISIL A4 Cash Credit 45.0 CRISIL B/Stable The ratings reflect SBPL's large working capital requirement, small scale of operations, and weak financial risk profile because of average gearing and subdued debt protection metrics. These weaknesses are partially offset by its promoters' extensive experience in the steel barrels industry and its established relationships with customers and suppliers. Outlook: Stable CRISIL believes SBPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if scale of operations increases significantly and operating margin remains steady, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if financial risk profile deteriorates because of large debt for capital expenditure or working capital requirement, or decline in operating profitability. Incorporated in 2000, SBPL manufactures steel barrels. Its manufacturing facility is at Halol in Vadodara (Gujarat). The company is promoted and managed by Parihar family and has capacity to produce 25,000 barrels per months. On a provisional basis, SBPL reported profit after tax (PAT) of INR2.1 million on net sales of INR144.3 million for 2014-15 (refers to financial year, April 1 to March 31), against net loss of INR0.5 million on net sales of INR86.1 million for 2013-14. SHREE TEL-FAB: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shree Tel-Fab Industries Private Limited's (Tel-Fab) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook to the suspended category. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for Tel-Fab. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary Tel-Fab's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR100 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR137.5 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' SRI BALMUKUND: Ind-Ra Suspends 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sri Balmukund Polyplast Pvt Ltd's (SBPPL) Long-Term Issuer Rating of 'IND BB-' with a Negative Outlook to the suspended category. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been suspended due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SBPPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary SBPPL' ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR367 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR85 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' STARSHINE NIRMAN: Ind-Ra Suspends 'IND BB-' LT Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Starshine Nirman Private Limited (SNPL) Long-Term Issuer Rating of 'IND BB-' with Negative Outlook to the suspended category. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SNPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary SNPL's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR40 mil. fund-based limits: migrated to 'IND BB-(suspended)' from 'IND BB-'/Negative -- INR250.5 mil. non-fund-based limits: migrated to 'IND A4+(suspended)' from 'IND A4+' SUDHAMA HOSIERIES: CRISIL Suspends C Rating on INR29.1MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sudhama Hosieries (Sudhama; part of the Sudhama group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing Credit 25 CRISIL A4 Foreign Bill Discounting 5 CRISIL A4 Proposed Long Term Bank Loan Facility 29.1 CRISIL C Standby Line of Credit 5.0 CRISIL A4 The suspension of ratings is on account of non-cooperation by Sudhama with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Sudhama is yet to provide adequate information to enable CRISIL to assess Sudhama'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Sudhama and Krishna Textile Process (KTP). This is because the two entities, together referred to as the Sudhama group, have a common management, are in the same line of business, and have strong operational and financial linkages with each other. Set up in 1978 by Mr. P Gopalakrishnan, Sudhama manufactures knitted garments and exports the same to European countries. Set up in 2002, KTP is involved in dyeing of polyester, cotton and viscose fabrics. SUNDEEP SRIVARAS: CRISIL Suspends B+ Rating on INR80MM Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Sundeep Srivaras Coffee (SSC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable Long Term Loan 7.5 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 12.5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SSC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSC is yet to provide adequate information to enable CRISIL to assess SSC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' SSC, set up in 2000 and based out of Mysore (Karnataka), trades in coffee beans. The firm is promoted by Mr. M.V.Madhu and Mr.Sundeep Shenoy. T.J.S. ENGINEERING: CRISIL Suspends B+ Rating on INR90MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of T.J.S. Engineering College (TJSEC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 90 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by TJSEC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TJSEC is yet to provide adequate information to enable CRISIL to assess TJSEC'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' TJSEC was established by TJSMET. The institute started its first academic session in 2009-10, with the Bachelor in Technology degree. The trust, TJSMET, also founded T.J.S Polytechnic College (TJSPC), which began its academic sessions in 2010-11, with a Diploma in Engineering. The institutes share an 11.5 acre campus in Peruvoyal, Thiruvallur (Tamil Nadu). TJSEC and TJSPC are affiliated to Anna University (Chennai), and accredited by the All India Council for Technical Education (AICTE). U. M. RAMESH: CRISIL Suspends D Rating on INR50MM Term Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facility of U. M. Ramesh Rao (UMRR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 50 CRISIL D The suspension of ratings is on account of non-cooperation by UMRR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, UMRR is yet to provide adequate information to enable CRISIL to assess UMRR'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. UMRR, set up in 1975 as a proprietorship firm, operates two coffee estates, Watekhan and Yellikodige, in Chikmagalur district (Karnataka). The firm is managed by Mr U M Ramesh Rao and Mr. Bhaskar Rao. ULCCS IT: CRISIL Suspends B+ Rating on INR1.26BB LT Loan -------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of ULCCS IT Infrastructure Pvt Ltd (UIIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 1260 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by UIIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, UIIPL is yet to provide adequate information to enable CRISIL to assess UIIPL'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in November 2008, UIIPL is developing an IT park, UL Cyberpark, in Kozhikode (Kerala). UIIPL is a subsidiary of ULCCS Ltd (a co-operative society). ULCCS Ltd, formed in 1925, undertakes civil construction projects, such as road and bridge construction, in Kerala. VARADHARAJA FOODS: CRISIL Suspends B- Rating on INR32.5MM Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Varadharaja Foods Pvt Ltd (VFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32.5 CRISIL B-/Stable Letter of Credit 15 CRISIL A4 Proposed Long Term Bank Loan Facility 10.7 CRISIL B-/Stable Term Loan 13.1 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by VFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VFPL is yet to provide adequate information to enable CRISIL to assess VFPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' VFPL based in Salem (Tamil Nadu) was established in 2009 by Mr. N E Kumar; it commenced operations in July 2010. VFPL is engaged in processing of mango pulp and other fruits such as guava and papaya. VENUS P.P.: CRISIL Reaffirms D Rating on INR49.7MM Bank Loan ------------------------------------------------------------ CRISIL's ratings on the bank loan facilities of Venus P.P. Varadaraju Spinning Mills Pvt Ltd (Venus) continue to reflect the instances of delays by the company in servicing its term loan obligations on account of weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3.2 CRISIL D (Reaffirmed) Cash Credit 30 CRISIL D (Reaffirmed) Long Term Loan 17.5 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 49.7 CRISIL D (Reaffirmed) Venus also has a small scale of operations in the intensely competitive textile industry and weak financial risk profile marked by a high gearing. The company, however, benefits from the extensive industry experience of its promoter and its longstanding relationship with customers and suppliers. Set up in 2005 by Mr. V Gopu, Venus manufactures double count cotton yarn. The company is based out of Salem (Tamil Nadu). VISION METALIK: CRISIL Reaffirms B+ Rating on INR58MM Term Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Vision Metalik Company (VMC) continues to reflect VMC's working-capital-intensive nature and small scale of operations in the intensely competitive steel industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B+/Stable (Reaffirmed) Term Loan 58 CRISIL B+/Stable (Reaffirmed) The rating also factors in a moderate financial risk profile and small scale, of operations in an intensely competitive steel industry. These rating weaknesses are partially offset by the extensive entrepreneurial experience of the partners. Outlook: Stable CRISIL believes VMC will continue to benefit over the medium term from its partners' extensive entrepreneurial experience. The outlook may be revised to 'Positive' if the business and financial risk profiles improve, supported by a significant increase in revenue and profitability. Conversely, the outlook may be revised to 'Negative' if profitability declines, or there is large debt- funded capital expenditure, leading to deterioration in the financial risk profile. Update VMC had revenue of around INR292.4 million in 2014-15 (refers to financial year, April 1 to March 31), as against INR116.2 million in 2013-14. The firm has an installed capacity of around 24,000 tonnes per annum capacity utilisation was around 44 per cent in 2014-15, resulting in 11,000 tonnes of billets manufactured during the year. The operating margin remained at 8 per cent in 2014-15. Realisation is expected to moderate in 2015-16 due to the ongoing slowdown in the domestic steel industry. However, because of higher capacity utilisation, the operating margin is expected to remain at 7.5-8.0 per cent over the medium term. The firm's working capital cycle remains average, primarily driven by high inventory of 85-90 days against low credit period from suppliers. Most of the manufactured billets are sold to group company, Vision Ispat Pvt Ltd, to which average credit of 15-20 days is offered. VMC's capital structure remains moderate with gearing of around 1.1 times against a net worth of INR72.5 million, as on March 31, 2015. Debt protection metrics remained adequate with interest coverage and net cash accrual to total debt ratios at around 2.10 times and 0.14 time, respectively, in 2014- 15. Debt protection metrics are expected to improve over the medium term driven by higher accrual due to scaling up of operations. Liquidity remains stretched with high bank limit utilisation at an average of around 97 per cent over the 12 months through March 2015. The current ratio was comfortable at around 1.15 times as on March 31, 2015. VMC, on a provisional basis, reported a net loss of INR4.9 million on net sales of INR292.4 million for 2014-15; it had reported a net loss of INR15 million on net sales of INR116.2 million for 2013-14. VMC, incorporated in 2012, manufactures mild steel billets at its facilities in Dibrugarh (Assam). The firm was established by Mr. Narendra Kumar Saharia, Mrs. Navina Jain, Mrs. Padma Devi Agarwalla, and their associate companies; its manufacturing operations are managed by its partners. WUD TOOLS: CRISIL Suspends B Rating on INR92.4MM LT Loan -------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of WUD Tools (WT). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 75 CRISIL B/Stable Proposed Long Term Bank Loan Facility 92.4 CRISIL B/Stable Term Loan 22.6 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by WT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, WT is yet to provide adequate information to enable CRISIL to assess WT'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 factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. WT, set up in 1965, is a partnership firm of Mr. Lokendra Sheth and Mr. Chaitanya Sheth. The firm manufactures cutting tools including straight blades, carbide T-blades and carbide tip saws. WT has a manufacturing facility in Latur (Maharashtra). ==================== N E W Z E A L A N D ==================== LIFESTYLE HEALTH: Placed in Voluntary Liquidation ------------------------------------------------- Chloe Winter at Stuff.co.nz reports that the owner of two Hutt Valley gyms has put his company into voluntary liquidation owing more than NZ$1 million, after an increase in competition hit its membership base. Stuff.co.nz relates that the Lifestyle Health and Fitness Centre, owned by Steve Millar, owes NZ$1.07 million to its creditors. With most of the money owed to ANZ, there may be little return for unsecured creditors even though liquidators are confident they can sell the business, according to the report. The report says the company owns one gym in Lower Hutt, which opened in 1990, and another in Upper Hutt, which opened in 2003. Mr. Millar would not comment on the liquidation on Oct. 16, saying he did not want to jeopardise the process, the report relays. In the first liquidator's report, Jessica Kellow -- jessica@sd.co.nz -- of Sheppard Dunphy said the gyms had a loyal and substantial membership base for many years, but financial pressures proved too much, relays Stuff.co.nz. "Significant costs have been incurred in the relocation of the Lower Hutt club and refits which have placed a large financial burden on the entities," Mr. Kellow wrote. "In recent times increased competition has resulted in a declining membership base and the debt servicing had become unsustainable." Stuff.co.nz notes that the company owes about NZ$834,000 to ANZ Bank, NZ$150,000 to Inland Revenue, NZ$34,000 to its employees for holiday pay and NZ$277,225 to its trade creditors. At this stage, Ms. Kellow estimated its total assets to be worth NZ$225,000, but would continue to look at the company's books to establish if there were any "potentially voidable transactions that require investigation," notes the report. Kellow was continuing to operate the clubs, while seeking expressions of interest, she said, reports Stuff.co.nz. "We don't take decisions to trade businesses like this lightly," the report quotes Ms. Kellow as saying. "But the mantra is business as usual . . . [as] we are very confident of a sale." Memberships were not affected "at this stage" and Kellow expected the new owners would honour all current memberships, she said, according to Stuff.co.nz. All staff had been re-employed by the liquidators until the end of October, the report notes. ===================== P H I L I P P I N E S ===================== ORIENT COMMERCIAL: SC Denies Owner's Petition v. Auction Order -------------------------------------------------------------- BusinessWorld Online reports that the Supreme Court (SC) has denied the petition of Jose C. Go, the owner of the now-defunct Orient Commercial Banking Corp., against a court order that auctioned off his other company's properties as security for the bank's multibillion-peso obligations. In a nine-page decision dated July 8, the SC First Division junked the petition by Mr. Go, with eight of his other companies including Gotesco Properties, Inc. and Ever Emporium, Inc. as co- petitioners, for lack of merit, BusinessWorld relates. It said the Go group was estopped from going back on its commitments as laid down in its 2003 compromise agreement with Bangko Sentral ng Pilipinas, the report says. BusinessWorld relates that the said agreement provided that the properties of Ever Crest Golf Club Resort, Inc., and Mega Heights, Inc., be used as security in case the Go group fails to settle its PHP2.975-billion obligation within a ten-year period. According to the report, Mr. Go challenged the July 6, 2009 writ of execution handed down in BSP's favor that auctioned off the Ever Crest properties. He said the Court of Appeals gravely abused its discretion in upholding its validity because Ever Crest was not a signatory to the agreement, the report says. But the high court said this argument was "bereft of substance." It said the Go group and Ever Crest itself firmly committed to allow the properties to be used as security for Orient Bank's obligations, according to BusinessWorld. BusinessWorld says the compromise agreement, the high court noted, had assured BSP that all corporate approvals were already obtained for the use of the properties as security. Since the Go group was the one that offered the Ever Crest properties to BSP, the court said "they should not now be allowed to escape or to evade their responsibilities under the compromise agreement just to prevent the levy on execution of Ever Crest's properties," the report relays. BusinessWorld says the court added that the Go group was contractually tied to defend the writ of execution and not raise any issue to defeat BSP's rights to the properties. According to BusinessWorld, the Go group's compromise agreement with BSP provided that failure on the former's part to settle its obligation would allow the latter to "immediately ask for a Writ of Execution against all assets of the Ever Crest Golf Club Resort, Inc., and Mega Heights, Inc." BusinessWorld notes that the transfer certificates of title (TCTs) covering the properties were issued to the BSP as its new owner, after being named the highest bidder in the public auction. The report says the BSP noted in a statement on October 15 that the Go group reneged on its commitment to pay the obligation within a ten-year period, because it remained unpaid five years after court approval was obtained in 2003. It added that this was not the first time the compromise agreement's validity was challenged. In June 2011, the Supreme Court ordered the case returned to the Manila RTC for its continued implementation, BusinessWorld reports. ==================== S O U T H K O R E A ==================== PANTECH CO: Seoul Court Approves Revival Plan --------------------------------------------- Yonhap News Agency reports that a Seoul court gave the nod to a local consortium's plan to resuscitate cash-strapped Pantech Co. on October 16, paving the way for the handset maker to survive on its own. Collapsing under the weight of growing debt, Pantech, South Korea's No. 3 smartphone maker, was placed under court receivership in August last year. Early this month, the consortium of South Korean optical manufacturer Optis and Solid, a device firm listed on the tech- heavy KOSDAQ market, completed the acquisition of Pantech by paying KRW49.6 billion (US$44 million) and sought court approval of the deal, Yonhap recalls. Yonhap relates that in a meeting of representatives from creditors and Pantech on October 16, the Seoul Central District Court approved the revival plan, ending the handset maker's court receivership. According to the report, the consortium has launched SMA Solution Holdings, a special-purpose firm to manage the new Pantech. Solid owns a 96 percent stake in the entity, and the remainder is held by Optis. The report notes that Pantech, which used to boast sound sales in the market congested with global brands such as Samsung and Apple, commenced its second workout in March 2014 amid faltering sales. After months of efforts for normalization and finding potential buyers, Pantech almost went into liquidation in May, before the consortium announced its plan to take over the company, the report recalls. Yonhap says the consortium plans to make budget smartphones as the new growth engine for Pantech and build production lines overseas to cut costs. The consortium will take over Pantech's 4,099 patents and 500 employees, as well as its overseas assets. Other production facilities and other property deposits are also included, adds Yonhap. About Pantech Founded in 1991, Pantech Co. is a Korean manufacturer and seller of mobile devices. Major shareholders include Qualcomm (11.96%), Korea Development Bank (11.81%), and Samsung Electronics Co., Ltd (10.03%). Pantech filed for court receivership in Seoul, Korea in August 2014 after its latest flagship smartphone failed to take off. The company filed for Chapter 15 bankruptcy protection at the U.S. Bankruptcy Court in Atlanta (Bankr. N.D. Ga. Case No.: 14-70482) on Oct. 16, 2014. Joonwoo Lee, the Seoul-court appointed custodian, serving as foreign representative in the U.S. case, is represented by attorneys at Jacobs Legal, LLC, and H.C. Park & Associates. The Debtor is estimated to have assets and debt ranging from $100 million to $500 million. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***