/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/151120.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 Friday, November 20, 2015, Vol. 18, No. 230 Headlines A U S T R A L I A LONGDA HOLDINGS: First Creditors' Meeting Set For Nov. 27 MALASS DEVELOPMENTS: First Creditors' Meeting Set For Nov. 27 MASTERS HOME: Continues to Deteriorate; Losing AUD78,000 a Week NORTHERN IRON: In Admin.; Norwegian Unit Files for Bankruptcy C H I N A TANGSHAN SONGTING: Record Low Steel Prices Leads to Shutdown I N D I A ADROIT CORPORATE: CRISIL Cuts Rating on INR185.3MM Loan to B+ AGRAWAL WOVEN: CARE Assigns 'B' Rating to INR13.50cr LT Loan AMIT AUTO: CRISIL Reaffirms B+ Rating on INR20MM Funding Loan AMRIT FRESH: CARE Lowers Rating on INR16.16cr LT Loan to D BEBO INTERNATIONAL: CARE Assigns B Rating to INR3.0cr LT Loan BIJJARAGI MOTORS: CRISIL Reaffirms 'B' Rating on INR50MM Loan COLOSSUS TRADE: ICRA Reaffirms B+ Rating on INR25cr Loan DHANRAJ SOLVEX: CARE Reaffirms B+ Rating on INR25cr LT Loan DIRCO POLYMERS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating ETA POWERGEN: CRISIL Lowers Rating on INR188.8MM LT Loan to D GLOBSYN KNOWLEDGE: CRISIL Cuts Rating on INR127MM Term Loan to D GLOBSYN TECHNOLOGIES: CRISIL Cuts Rating on INR84MM Loan to B+ GOKUL STEELS: CRISIL Reaffirms B+ Rating on INR64.5MM Term Loan H R BUILDERS: ICRA Reaffirms B+ Rating on INR8cr Bank Loan HOTEL SUKHAMAYA: CRISIL Assigns B- Rating to INR42.5MM Term Loan ISCON CRAFT: CRISIL Reaffirms B+ Rating on INR66.9MM Term Loan JAGDAMBAY COTSPIN: ICRA Reaffirms B Rating on INR20cr LT Loan KARLA CONSTRUCTIONS: CARE Assigns B+ Rating to INR7cr LT Loan KAVERI GAS: CRISIL Suspends 'D' Rating on INR92MM LT Loan MAGICK WOODS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating MAHAVIR RICE: CARE Assigns B+/A4 Rating to INR75cr Loan NIKITA CORPORATION: CRISIL Assigns B+ Rating to INR85MM Loan PRAKASH INDUSTRIAL: ICRA Suspends D Rating on INR20.25cr Loan RANJEET AUTOMOBILES: Ind-Ra Assigns 'IND BB' LT Issuer Rating SAI RAGHAVENDRA: CRISIL Reaffirms B Rating on INR36.5MM Loan SHREE AMEYA: CRISIL Ups Rating on INR99MM LT Loan to B SIDDIQUE TRADING: CRISIL Suspends B+ Rating on INR100MM Loan SIGNATURE CERAMIC: ICRA Reaffirms B+ Rating on INR3cr Cash Loan SPECTRUM COMPLEX: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating SUNSHINE BUILDERS: ICRA Assigns B+ Rating to INR10cr Term Loan SWATI SYNTHETICS: CRISIL Assigns B+ Rating to INR73MM Term Loan SWISS GARNIER: CRISIL Reaffirms B- Rating on INR103.3MM Loan TRANSNATIONAL: CRISIL Reaffirms B+ Rating on INR25MM Cash Loan VARIDHI HYGIENE: ICRA Suspends B- Rating on INR9.25cr Term Loan VEE TECHNOLOGIES: CRISIL Suspends B- Rating on INR64.2MM Loan VIPUL OVERSEAS: CRISIL Cuts Rating on INR45MM Cash Loan to B+ YOGESHWARI PETRO: CRISIL Assigns B+ Rating to INR30MM Cash Loan N E W Z E A L A N D SENTRY HILL: Liquidation Case Adjourned to February 2016 S I N G A P O R E M2 ACADEMY: Closure Leaves Some Teachers In The Lurch S O U T H K O R E A LOTTE GROUP: Duty-free Shop License Loss Adds to Troubles - - - - - ================= A U S T R A L I A ================= LONGDA HOLDINGS: First Creditors' Meeting Set For Nov. 27 --------------------------------------------------------- Ozem Kassem and Jason Tang of Cor Cordis Chartered Accountants were appointed as administrators of Longda Holdings Pty Ltd on Nov. 17, 2015. A first meeting of the creditors of the Company will be held at Cor Cordis Chartered Accountants, Level 6, 55 Clarence Street, in Sydney, on Nov. 27, 2015, at 11:00 a.m. MALASS DEVELOPMENTS: First Creditors' Meeting Set For Nov. 27 ------------------------------------------------------------ David Ingram & Richard Albarran of Hall Chadwick Chartered Accountants were appointed as administrators of Malass Developments Pty Limited on Nov. 18, 2015. A first meeting of the creditors of the Company will be held at Hall Chadwick Chartered Accountants, Level 40, 2 Park Street, in Sydney, on Nov. 27, 2015, at 11:00 a.m. MASTERS HOME: Continues to Deteriorate; Losing AUD78,000 a Week --------------------------------------------------------------- Catie Low at The Sydney Morning Herald reports that Masters Home Improvement stores are losing AUD78,000 a week based on the latest losses reported by the embattled hardware operation's US joint venture partner Lowe's. Based on Lowe's latest financials reported in the US, Deutsche Bank estimates the Masters JV lost AUD 67.5 million before tax in the first quarter of fiscal 2016. According to the report, analyst Michael Simotas said this was considerably more than the AUD57 million loss from the corresponding period last year and he predicted Woolworths would outline its plans for the business in coming months. "The continued deterioration in Master's losses is clearly disappointing, particularly given there was modest improvement in the sales line during 1Q," the report quotes Mr. Simotas as saying. "We expect the group to make a decision on its home improvement position over the next several months and in our view, the probability of an exit is increasing." SMH says Lowe's burnt just over AUD21 million on Masters in the third quarter compared to AUD17.8 million in the same period last year, pushing the Australian dollar losses for the US giant out by just under 20% for the three months to the end of October. SMH relates that the result released in the US won't provide any comfort for Woolworths chair Gordon Cairns with Bank of America Merrill Lynch claiming the Masters business is on track to hit its forecast losses of AUD290 million in 2016 and about AUD355 million in 2017. Mr Cairns has been busy meeting with major shareholders ahead of next week's annual general meeting and canvassing the options for the loss-making Masters business, the report relays. It's understood Mr Cairns has discussed two scenarios, liquidating the business or trading through its current losses, but it's believed he's also acknowledged that neither of these options are very appealing, according to SMH. The only other option would be to find a buyer for the business, SMH notes. The report says Woolworths claimed in September its revamped Masters format had bolstered sales by as much as 30% compared to the original format. According to the report, Lowe's has a one third stake in Masters and a put option, which it could use to compel Woolworths to buy back its interest as long as it gives 13 months notice. It's not clear what this put option is valued at but analysts have suggested it could be worth up to AUD1 billion, the report relates. SMH discloses that Lowe's latest results push the losses on Masters out to about US$138 million for the nine months to October 30 but the joint-venture with Woolworths has sunk AUD3.3 billion into the business. Moody's and Standard and Poor's recent credit outlook downgrades have added to the pressure on Woolworths to reveal its blueprint for Masters and bring forward a resolution to the losses, the report states. And talk that Masters boss Matt Tyson is on his way out of the operation has further fuelled speculation over Woolworths' plans, adds SMH. NORTHERN IRON: In Admin.; Norwegian Unit Files for Bankruptcy ------------------------------------------------------------- Northern Iron Limited said on Nov. 19 that the Board of its wholly-owned subsidiary, Sydvaranger Gruve AS has resolved to file for bankruptcy under Norwegian Legislation. "Significant efforts have been made over a long period of time by the management of the Company and SVG to improve efficiencies, reduce costs and find a solution that would contribute working capital for the business and restructure liabilities to ensure the continuation of the Group's operations. These endeavours have identified and demonstrated genuine interest from potential investors to find a workable solution, however regrettably the financiers have evaluated their position and concluded that a continued process would not yield a solution acceptable to them. Consequently, the Board of SVG are no longer able to form a view that it is probable that a solution can be achieved and therefore have no other option other than to file for bankruptcy," Northern Iron said in a statement to the ASX. "As a consequence of the bankruptcy of SVG, it is the opinion of the Directors that NFE is likely to become insolvent at some future time and the Directors have therefore appointed James Thackray of The Headquarters Corporate Advisory as Voluntary Administrator pursuant to Section 436A of the Corporations Act. Accordingly it is expected that the Company's securities will remain suspended until further notice." Northern Iron Limited (ASX:NFE) -- http://www.northerniron.com.au/ is an Australian-based company, which is the 100% owner of Sydvaranger Iron Project in northern Norway. The Company operates in three segments: Sydvaranger Iron Ore Project, marketing of ore concentrate and corporate office. The Sydvaranger Iron Project is located adjacent to the towns of Bjornevatn and Kirkenes in Norway, approximately 1,500 kilometers north east of the capital, Oslo. The Sydvaranger project uses mining, rail, processing and port assets to produce and export iron ore concentrate to steel industry customers across the world. The product from the project contains iron ore content of approximately 68.5% and silica content of approximately 4.5%. The Sydvaranger Iron Project consists of four magnetite iron deposits with JORC compliant resources (Kjellmannsasen, Fisketind ost, Bjornevatn and Tverrdalen) and a further approximately 20 prospects with known iron mineralization located over a 12 kilometers strike length. ========= C H I N A ========= TANGSHAN SONGTING: Record Low Steel Prices Leads to Shutdown ------------------------------------------------------------ Reuters reports that Chinese steel prices hit record lows on Nov. 17 amid prolonged worries over shrinking demand in the world's top consumer that market sources say has forced one of the country's largest private producers to cease output. Reuters relates that traders and analysts said the shutdown by Tangshan Songting Iron & Steel, with an annual capacity of 5 million tonnes, would be one of the biggest in the sector's years- long downturn as the world's No.2 economy slows. The company, located in the northeastern city of Tangshan, did not answer repeated telephone calls, Reuters says. An official with the local government of Tangshan said it was "dealing with the issue right now in accordance with related law and regulations", without specifically stating the company had ended production, according to Reuters. The report says Chinese social media showed photos and videos that were apparently of hundreds of disgruntled workers gathered outside a local government building in Qian'an, Tangshan, demanding help in the face of the closure. A shutdown would highlight the sector's woes and fuel concerns that more closures are on the way, with a raft of mills already shuttering output, the report notes. Reuters relates that while cuts in output would remove some of the surplus capacity that has weighed on prices, traders said the latest shutdown dented overall sentiment on the outlook for the Chinese economy. On Nov. 17, Chinese steel prices plumbed a record low of CNY1,748 a tonne, down nearly 37% since the beginning of this year. That has also hit demand for steelmaking ingredient iron ore, already down over 30% in 2015, the report notes. "I think there will be more closures in China and no capacity additions. Steelmakers and local governments don't have the incentive to build new capacity," the report quotes Wang Li, an analyst at CRU Group in Beijing, as saying. "Generally people think that to close a steel plant would be quite difficult in China and maybe unlikely, but the fact is closures are increasing and quicker than people's expectations." China-based Tangshan Songting Iron & Steel Co., Ltd. engages in manufacturing of billet and hot rolled steel strips. ========= I N D I A ========= ADROIT CORPORATE: CRISIL Cuts Rating on INR185.3MM Loan to B+ ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Adroit Corporate Services Private Limited (ACSPL) to 'CRISIL B+/Stable' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') Term Loan 185.3 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') The downgrade reflects deterioration in ACSPL's financial risk profile, particularly its liquidity, on account of stretched receivable cycle and its large debt repayment obligations vis-a-vis its accruals. ACSPL's debt metrics have also deteriorated with gearing as on March 31, 2015 at 1.8 times against that of 0.8 times in the preceding year. ACSPL's gearing and liquidity is expected to remain constrained over the medium term on the back of additional term debts contracted in 2015-16. CRISIL believes that improvement in the liquidity, most likely through reduced receivable cycle, will remain the key rating sensitivity factor over the medium term. The rating continues to reflect ACSPL's modest scale of operations in a fragmented industry, and below average financial risk profile because of high gearing. These weaknesses are partially offset by promoters' extensive experience in the business process outsourcing services industry. Outlook: Stable CRISIL believes ACSPL will continue to benefit over the medium term from promoters' extensive industry experience and established relationships with customers. The outlook may be revised to 'Positive' if financial risk profile, particularly capital structure, improves significantly because of funding support from promoters or if the liquidity improves through reduced working capital cycle. Conversely, the outlook may be revised to 'Negative' if liquidity deteriorates due to lower-than-expected cash accrual or further stretch in operating cycle. Incorporated in 1994, ACSPL provides business process outsourcing services, primarily to the banking sector. The company is also a registrar and share transfer (R&T) agent. Its operations are managed by Mr. Sadashiva Shetty. AGRAWAL WOVEN: CARE Assigns 'B' Rating to INR13.50cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE B' rating to the bank facilities of Agrawal Woven Polymers. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 13.50 CARE B Assigned Rating Rationale The rating is primarily constrained on account of the predominately debt-funded greenfield project undertaken by Agrawal Woven Polymers (AWP) for the manufacturing of woven sack bags and susceptibility of its profitability to volatile raw material prices. The rating is, further, constrained on account of its presence in the highly competitive and fragmented woven sack industry and its constitution as a partnership concern which led to risk of withdrawal of capital. The rating, however, derives strength from the experienced management in the packaging industry. The ability of the firm to complete the project within envisaged cost parameters and ability to stabilize the operations to achieve envisaged levels of sales and profitability will be the key rating sensitivities. Udaipur-based AWP was formed in September 2014 as a partnership concern by Mr Kailash Chand Agrawal, Mr Yogesh Agrawal, Mr Tarun Agarwal and Mr Amit Agarwal in a profit & loss sharing ratio of 10:10:40:40 respectively. AWP was formed with an objective to set up a greenfield plant for manufacturing of woven sack bags at Udaipur (Rajasthan). Woven sack bags are manufactured from Polypropylene (PP)/High Density Polyethylene (HDPE) granules and find their applications in storing and transporting free flowing dry products like flour, salt, cotton, cement, rice, seeds, cattle feeds and sugar, etc. The firm envisaged to complete its project and start commercial operations by the end of November 2015. The firm envisaged total project cost of INR17.01 crore which is envisaged to be funded with a debt equity mix of 1.54:1. The unit proposes to have an installed capacity of 4,043.52Metric Tonnes Per Annum (MTPA). AMIT AUTO: CRISIL Reaffirms B+ Rating on INR20MM Funding Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Amit Auto Wheels Private Limited (AAWPL) continue to reflect AAWPL's constrained financial flexibility on account of high gearing and small net worth and exposure to intense competition in automobile dealership industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Inventory Funding Facility 150 CRISIL A4 (Reaffirmed) Inventory Funding Facility 20 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are mitigated by the promoters' extensive experience in the dealership of commercial vehicles and the benefits that it derives from the dealership of automobiles manufactured by Tata Motors Ltd (TML; rated, 'CRISIL AA/CRISIL AAA (SO)/Stable/CRISIL A1+'). Outlook: Stable CRISIL believes AAWPL will benefit over the medium term from its association with TML over the medium term, and the promoters' extensive industry experience. The outlook may be revised to 'Positive' if any equity infusion or increase in revenue or cash accrual leads to a stronger financial risk profile. Conversely, the outlook may be revised to 'Negative' if low accrual or any debt-funded capital expenditure weakens the financial risk profile. Set up in 2009 by Mr. Amit Sahni and family, AAWPL is the exclusive authorised dealer for TML's entire range of commercial vehicles in six districts of Uttarakhand -- Nainital, Almora, Pithoragarh, Bhageshwar, Champawat, and Udham Singh. It has one showroom of light and heavy commercial vehicles with sales, service, and spares (3S) facilities in Haldwani and one light commercial vehicles showroom with 3S facilities in Rudrapur. It also has 1S outlets in Pithoragarh, Kashipur, and Khatima (all in Uttarakhand). AMRIT FRESH: CARE Lowers Rating on INR16.16cr LT Loan to D ---------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Amrit Fresh Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 16.16 CARE D Revised from CARE BB Short-term Bank Facilities 1.00 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Amrit Fresh Private Limited (AFPL) takes into account the ongoing delays in debt servicing due to stressed liquidity position of the group. The liquidity position of the company has been stressed due to continuing losses at the PBILDT level arising from consumption of comparatively high cost of Skimmed Milk Powder (SMP) to overcome the shortage of raw milk and lack of company's presence in the higher margin segment. Amrit Fresh Pvt. Ltd. (AFPL), incorporated in June 2009 and promoted by Mr. G. P. Bagla and his son Mr. Harish Bagla, is part of the Kolkata based Amrit Group. AFPL started operation with marketing of processed milk under the 'Amrit Fresh' brand using a third party set-up to process and pack raw milk. In April 2012, the company ventured into a project for setting up its own processing facility by acquiring an existing dairy unit in Barasat District, West Bengal which resulted in increase in total installed capacity to 1,50,000 ltr per day from 50,000 ltr per day. The unit has production facilities for processed milk and other value added products like lassi, curd, paneer, ice-cream, ghee etc along with SMP Plant with capacity of 10 tons per day. Amrit group has business interests in animal feed, poultry, egg, processed chicken, dairy products, frozen foods and processed vegetables. During FY15, AFPL earned a PAT of INR0.44 crore (Rs.0.25 crore in FY14) on a total operating income of INR28.13 crore (Rs.24.82 crore in FY14). BEBO INTERNATIONAL: CARE Assigns B Rating to INR3.0cr LT Loan ------------------------------------------------------------- CARE assigns ratings of 'CARE B and CARE A4' to bank facilities of Bebo International. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 3.00 CARE B Assigned Short term Bank Facilities 3.50 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Bebo International (BI) are constrained by short track record of the firm, small scale of operations, susceptibility of profitability margins to vagaries in the climatic conditions in India, intense competition in the rice industry and constitution of the entity as a partnership concern. The ratings, however, derive strength from the comfortable coverage and leverage indicators, completely hedged foreign exchange exposure and presence in a major paddy cultivation area facilitating easy procurement of raw material. Ability of the firm to improve the scale of operation, maintain its profitability margins and combat the fierce competition from other players are the key rating sensitivities. Bebo International (BI) was established as a partnership concern by Mr Padala Ramareddy and Mrs Kavita Agarwal in the year 2011. Later in 2014, one more partner, Mr Mutyala Krishnamurty joined the firm. Initially BI was earning revenue through brokerage commission by acting as an agent between the exporters and importers of rice. From late FY15 (refers to the period April 1 to March 31), the company started engaging in the rice processing, procurement and exports. During FY15, BI reported a net profit of INR0.75 crore on a total operating income of INR2.86 crore as against a net profit of INR0.14 crore on a total operating income of INR0.52 crore in FY14. BIJJARAGI MOTORS: CRISIL Reaffirms 'B' Rating on INR50MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Bijjaragi Motors (BM) continues to reflect BM's modest scale of operations and below-average financial risk profile because of high gearing and weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Reaffirmed) Inventory Funding Facility 50 CRISIL B/Stable (Reaffirmed) These weaknesses are mitigated by the promoters' extensive experience in the automobile (auto) dealership business and its established relationship with its principal, Tata Motors Ltd (TML). Outlook: Stable CRISIL believes BM will benefit over the medium term from its established position in the auto dealership market for TML in Bijapur and Bagalkot districts of Karnataka, and its promoters' extensive experience. The outlook may be revised to 'Positive' if the financial risk profile significantly improves, driven most likely by higher cash accrual or equity infusion, along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if any large, debt-funded capital expenditure programme, or weak working capital management or operating profitability adversely affects the financial risk profile, particularly liquidity. Set up in 2008, BM is an authorised dealer of passenger vehicles and spare parts of TML for Bijapur and Bagalkot. The firm is promoted by Mr. Raju Bijjargi and his family. COLOSSUS TRADE: ICRA Reaffirms B+ Rating on INR25cr Loan -------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B+ on the INR25.00 crore (enhanced from INR22.00 crore) bank lines of Colossus Trade Links Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 25.00 [ICRA]B+; reaffirmed/assigned ICRA's rating continues to take into account the intensely competitive and fragmented nature of the scrap metal trading industry, which coupled with the low value added nature of the business, has led to subdued profitability. Moreover, the company's profitability remains exposed to adverse movements in the prices of iron and steel scrap as well as cyclicality in the steel industry. The rating also factors in the company's high gearing, low net worth and weak debt protection metrics, with thin interest coverage and weak DSCR. The rating is also constrained by the company's stretched liquidity position as reflected in the high utilization of its fund based limits. Nevertheless, the rating derives comfort from the experienced promoters of the company and the company's established relationships with major customers and suppliers. Going forward, the ability of the company to attain a sustained improvement in its capital structure and liquidity position will be the key rating sensitivities. CTLL was incorporated in 2004 by Mr. Namit Gulati and his family. The company is engaged in the trading of scrap metal procured from the domestic automobile sector. It supplies scrap metal to foundries, steel plants, traders and electronic original equipment manufacturers (OEMs). CTLL is headquartered in Delhi and has seven warehouses (of which three are owned and four are rented) across north India, with a combined area of over 15,000 square yards and a combined storage capacity of over 8000 tonnes. Recent Results The company reported a Profit After Tax (PAT) of INR0.60 crore on an operating income of INR118.14 crore in FY15, as against a PAT of INR0.55 crore on an operating income of INR129.78 crore in the previous year. DHANRAJ SOLVEX: CARE Reaffirms B+ Rating on INR25cr LT Loan ----------------------------------------------------------- CARE reaffirms rating to the bank facilities of Dhanraj Solvex Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 25.00 CARE B+ Reaffirmed Rating Rationale The rating assigned to the bank facilities of Dhanraj Solvex Private Limited (DSPL) is constrained by project execution risk emanating from underway project implementation with 46% of total project cost incurred as on July 31, 2015, presence in highly fragmented industry with intense competition and susceptibility of margins to volatility in raw material prices and seasonal nature of raw material availability. The above weaknesses are partially offset by the promoter's satisfactory experience in the edible oil industry, strategic location of manufacturing unit with proximity to raw material sources and favorable growth prospects of the edible oil market. The ability of the company to timely complete the project within the envisaged cost and subsequently effectively utilize its capacity and generate sufficient accruals, are the key rating sensitivities. Established in the year 2014, Dhanraj Solvex Private Limited (DSPL) is a closely held company promoted by the Pallod family and is engaged in setting up capacity of 384 tonnes per day (tpd) for solvent extraction and 100 tpd for refinery plant, at Latur, Maharashtra, for extraction of soya oil and soya de-oiled-cake (DOC). The total estimated cost of the project is INR22.50 crore, which is proposed to be funded by promoter's capital of INR7 crore, interest free unsecured loan of INR 2 crore, and term debt of INR13.50 crore (already sanctioned). DSPL is expected to start commercial operations from January 2016. DIRCO POLYMERS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Dirco Polymers Private Limited (DPPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect DPPL's small scale of operations and moderate- to-weak credit metrics. The top line was INR465.21m in FY15 (FY14: INR356.49m) with interest coverage (operating EBITDA/gross interest expense) of 1.77x (1.68x) and financial leverage (total Ind-Ra adjusted net debt/operating EBITDAR) of 4.31x (5.48x). The ratings also factor in the company's elongated working capital cycle of 145 days due to high debtor days as well as inventory holding period and stressed liquidity position as evident from its almost-full average cash credit utilisation during the 12 months ended October 2015. The ratings are supported by over two decades of experience of DPPL's promoters in manufacturing master batches and compounds and its high profile clientele such as Samsung and Videocon. RATING SENSITIVITIES Negative: A significant decline in the operating profitability resulting in deterioration in the credit metrics shall be negative for the ratings. Positive: A significant improvement in the revenue while the credit metrics being maintained or improving will lead to a positive rating action. COMPANY PROFILE DPPL was incorporated in 1995. Itmanufactures master batches and compounds under the brand name DIRCO. Its plant is situated at IMT Manesar, Haryana. It reported satisfactory EBITDA margins of 7.41% in FY15 (FY14: 8.19%). ETA POWERGEN: CRISIL Lowers Rating on INR188.8MM LT Loan to D ------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of ETA Powergen Private Limited (ETA Powergen) to 'CRISIL D' from 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 188.8 CRISIL D (Downgraded from 'CRISIL B-/Stable') Proposed Long Term Bank Loan Facility 113.4 CRISIL D (Downgraded from 'CRISIL B-/Stable') Working Capital Term Loan 17.8 CRISIL D (Downgraded from 'CRISIL B-/Stable') The downgrade follows instances of delay by ETA Powergen in servicing its debt. The delays have been caused by the company's weak liquidity due to shut down of its biomass power plant since July, 2015, leading to loss of revenues and decline in cash flows. The rating also reflects ETA Powergen's small scale of operations, and exposure to risks related to limited revenue visibility in the absence of long-term power purchase agreements (PPAs) and to timely availability of raw material (biomass fuel). These rating weaknesses are partially offset by the management team's experience in the power sector. ETA Powergen, a subsidiary of ETA Star Holdings Ltd, was incorporated in 1999 and is part of the Dubai-based ETA group. ETA Powergen currently owns and operates a 10-megawatt (MW) biomass power plant in Tamil Nadu. The plant, which commenced operations in May 2009, uses juliflora as biomass fuel. The company has short-term agreements with industrial customers for sale of power. ETA Powergen reported a net profit of INR15 million on net sales of INR472.4 million for 2013-14 (refers to financial year, April 1 to March 31), against a net loss of INR0.5 million on net sales of INR478.1 million for 2012-13. GLOBSYN KNOWLEDGE: CRISIL Cuts Rating on INR127MM Term Loan to D ---------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Globsyn Knowledge Foundation (GKF) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long Term 35.5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Term Loan 127 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects instances of delay by GKF in servicing of term debt, because of weak liquidity on account of low occupancy for its courses and stagnant fees. GKF has a weak financial risk profile because of subdued debt protection metrics, and is vulnerable to regulatory risks inherent in the education sector. However, it benefits from promoter's extensive industry experience and funding support. GKF was founded in December 2004 in Kolkata by Mr. Bikram Dasgupta. The trust is managed by parent Globsyn Technologies Ltd (incorporated in 1997; engaged in the software and education industries). GKF offers Post Graduate Diploma in Management (PGDM) and Bachelor of Business Administration (BBA) courses through its institute, Globsyn Business School, in Bishnupur (West Bengal). GLOBSYN TECHNOLOGIES: CRISIL Cuts Rating on INR84MM Loan to B+ -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Globsyn Technologies Ltd (GTL) to 'CRISIL B+/Stable' from 'CRISIL BB+/Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 84 CRISIL B+/Stable (Downgraded from 'CRISIL BB+/Stable') The rating downgrade reflects CRISIL's belief that GTL's cash flows and liquidity will remain under pressure over the medium term on account of profitability constraints and large funding support to affiliates. Operating income declined to INR87 million in 2014-15 (refers to financial year, April 1 to March 31) from INR114.3 million in 2012-13 due to decline in income from education and training, and management consultancy segments. Operating margin was lower than expected in the two years through 2014-15, and way below the historical levels of over 20 per cent. This has resulted in substantially lower net cash accrual. GTL continues to extend funds to affiliates - INR138.1 million was outstanding as of March 2015. Moreover, monthly obligations of INR1 million are expected to come due over the medium term towards reduction of the dropline overdraft limit, adding to the pressure on liquidity. Liquidity is expected to remain under pressure over the medium term on account of sizeable investments in affiliates and repayment obligations. The ratings reflect GTL's small scale of operations, geographical concentration in revenue, and below-average financial risk profile marked by small net worth and weak debt protection metrics. These rating weaknesses are partially offset by GTL's established brand name in Kolkata's education industry. Outlook: Stable CRISIL believes GTL will continue to benefit over the medium term from its established brand name in the education industry in West Bengal. The outlook may be revised to 'Positive' if substantial improvement in operating revenue and profitability result in sizeable net cash accrual. Conversely, the outlook may be revised to 'Negative' if low student admissions and cash accrual, any large debt-funded capital expenditure, or significant financial support to group companies weakens the financial risk profile, particularly liquidity. GTL was set up in 1995 by the Kolkata (West Bengal)-based Mr. Bikram Dasgupta. Since 2002, the company operates a management institute named Globsyn Business School at Sector-V in Kolkata. It offers post-graduate management degree course. GOKUL STEELS: CRISIL Reaffirms B+ Rating on INR64.5MM Term Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Gokul Steels Private Limited (GSPL) continues to reflect GSPL's small scale of operations and exposure to risk related to fluctuation in iron and steel prices. These weaknesses are partially offset by the extensive industry experience of the company's promoter. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 42.4 CRISIL B+/Stable (Reaffirmed) Term Loan 64.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes GSPL will benefit over the medium term from the extensive experience of its promoter in the iron and steel industry. The outlook may be revised to 'Positive' if cash accrual is higher than expected, or in case of better-than-expected working capital management, leading to improvement in financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected accrual, stretch in working capital management, or if GSPL undertakes any significant debt-funded capital expenditure programme, leading to deterioration in overall financial risk profile, particularly liquidity. Promoted by the Bihar-based Mr. Vivek Kasera, GSPL has a steel structural rolling mill in Fatwa, Patna district. Though the Kasera family does not have any prior experience of operating a rolling mill, it has experience of over two decades in trading in iron and steel products. H R BUILDERS: ICRA Reaffirms B+ Rating on INR8cr Bank Loan ---------------------------------------------------------- ICRA has reaffirmed its long term rating on the INR8.00 crore fund based bank facilities of H R Builders (HRB) at [ICRA]B+. ICRA has also reaffirmed its short term rating on the INR46.00 crore bank facilities (including INR18.00 crore unallocated bank facilities) of HRB at [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based bank facilities- Overdraft 8.00 [ICRA]B+; reaffirmed Non-fund based bank facilities- Bank Guarantee 28.00 [ICRA]A4; reaffirmed Unallocated bank Facilities 18.00 [ICRA]A4; reaffirmed ICRA's rating reaffirmation takes into account the continued decline in HRB's operating scale owing to weak order inflow and limited revenue visibility, with Order book to FY15 Operating income ratio of 1.16 times. ICRA also notes that HRB is exposed to order concentration risks, with three orders accounting for the firm's entire order-book. The ratings are also constrained by the continued stretched liquidity position of the firm, as reflected in the consistently high utilization of its working capital limits. The stretch in liquidity is owing to its high receivable days, security deposits and loans and advances extended to related parties. ICRA also takes note of the proprietorship constitution of the firm which exposes it to risks such as withdrawal of capital, limited sources of raising capital, risk of dissolution etc. The rating however, continues to draw comfort from the track record of the promoters in the construction sector as well as HRB's client base, consisting largely of public sector entities where the possibility of delinquencies is low. The rating takes support from HRB's healthy operating profitability (OPBDITA margin of 14.87% and PAT margins of 5.17% in FY2015, which improved from 12.68% and 4.77% respectively, for the year ago period) and the firm's light leverage and moderate coverage indicators. Going forward, the firm's ability to improve its working capital cycle and liquidity position will be key rating sensitivities. Further, the firm's ability to improve the order book position and revive revenue growth while maintaining its profitability will continue to be the key monitorables. Incorporated in January 1981 by Mr. Hansraj Dhankar, HRB is a proprietorship concern and is engaged in the construction of roads and buildings. The firm's scope of work under the roads segment includes repair, maintenance and rehabilitation of existing roads as well as construction of new roads. Under the building construction segment, the services offered by the firm include structural work for buildings, furniture and fixtures fittings as well as provision of plumbing, electrical and fire fighting works. The firm's clientele largely includes public sector clients like Delhi State Industrial and Infrastructure Development Corporation, Public Works Department, Delhi Metro Rail Corporation and National Highways Authority of India. Recent Results HRB reported an Operating income (OI) of INR48.66 crore on which it earned a net profit of INR2.52 crore in FY15, as compared to an OI of INR53.44 crore and a net profit of INR2.55 crore in the previous year. HOTEL SUKHAMAYA: CRISIL Assigns B- Rating to INR42.5MM Term Loan ---------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Hotel Sukhamaya Private Limited (HSPL), and has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to these facilities. CRISIL had suspended the rating on July 02, 2014, as the company had not provided the necessary information required for a rating review. HSPL has now shared the requisite information enabling CRISIL to assign rating to the bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 7.5 CRISIL A4 (Assigned; Suspension revoked) Cash Credit 20 CRISIL B-/Stable (Assigned; Suspension revoked) Term Loan 42.5 CRISIL B-/Stable (Assigned; Suspension revoked) The ratings reflect geographical concentration in HSPL's revenue profile and its susceptibility to cyclicality in the hospitality industry and to intense competition in Bhubaneswar (Odisha). These rating weaknesses are partially offset by the industry experience of the company's promoters and its locational advantage. Outlook: Stable CRISIL believes HSPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of a substantial increase in net cash accrual or scale of operations, leading to a better financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' in case of lower-than- anticipated accrual, a substantial increase in working capital requirement, or larger-than-expected debt-funded capital expenditure, resulting in weakening of the financial risk profile, especially liquidity. HSPL, incorporated in 1981, operates a three-star hotel named The Crown in Bhubaneswar (Orissa). The hotel has facilities such as a swimming pool, a health club, a bar, four banquet halls, and three restaurants. ISCON CRAFT: CRISIL Reaffirms B+ Rating on INR66.9MM Term Loan -------------------------------------------------------------- CRISIL's rating continue to reflect Iscon Craft Paper Mill Pvt Ltd (ICPM)'s small scale of operations in the highly fragmented paper industry, susceptibility of operating profitability to volatility in raw material prices, and below-average financial risk profile because of high gearing. These weaknesses are partially offset by promoters' extensive industry experience and established relationships with customers and suppliers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reaffirmed) Cash Credit 55 CRISIL B+/Stable (Reaffirmed) Cash Letter of Credit 5 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 18.1 CRISIL B+/Stable (Reaffirmed) Term Loan 66.9 CRISIL B+/Stable (Reaffirmed) CRISIL had upgraded its rating on the long-term bank facilities of ICPM to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and reaffirmed its rating on the short-term bank facilities at 'CRISIL A4' on November 2, 2015. The upgrade reflected CRISIL's belief that ICPM's business risk profile will improve over the medium term backed by stabilisation of its operations. The company reported net sales of INR308.3 million and moderate operating margin of 9 per cent for 2014-15 (refers to financial year, April 1 to March 31) for 2014-15. CRISIL believes revenue will grow at a pace of 20-25 per cent over the medium term. Outlook: Stable CRISIL believes ICPM 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 is higher than expected and financial risk profile improves because of better profitability. Conversely, the outlook may be revised to 'Negative' if revenue and operating profitability are substantially low or if working capital cycle lengthens, weakening financial risk profile. Established in 2011, ICPM manufactures kraft paper and has capacity of 24,000 tonnes per annum at its plant in Vadodara (Gujarat). It is managed by Mr. Ishwarbhai Patel, Mr. Jayantibhai Patel, Mr Devjibhai K Patel and Mr. Bharatbhai Pokar. JAGDAMBAY COTSPIN: ICRA Reaffirms B Rating on INR20cr LT Loan ------------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B on the INR20.00 crore fund-based bank facilities of Jagdambay Cotspin Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund Based Limits 20.00 [ICRA]B; Reaffirmed ICRA's rating continues to take into account the commoditized nature of JCL's finished product i.e. yarn and the fragmented industry structure which results in low bargaining power for manufacturers, translating into the company's weak profitability and modest cash accruals. The adequacy of debt coverage is critically dependent on the company's ability to improve its profitability as repayment obligations are sizeable in relation to cash accruals. However, it will be challenging for the company to improve its margins given the subdued demand for cotton yarn in export markets. The capital structure of the company remains moderate with gearing of 2.0x as on March 31, 2015; the gearing is likely to remain high over the medium term as the revenue growth would be accompanied by increasing working capital requirements. Given the high future working capital requirements and scheduled debt repayments; the liquidity position of the company is expected to remain stressed, as also reflected in high utilisation of its working capital limits. The rating, however, derives comfort from the experience of the promoters in the textile industry and the satisfactory utilization of installed capacities. Going forward, infusion of long-term funds to improve the liquidity, optimal utilization of installed capacity and improvement in profitability given the large scheduled debt repayments, will be critical for debt servicing and will be the key rating sensitivities. JCL manufactures coarse count open end cotton yarn at its manufacturing facility in Samana, Punjab. It was incorporated in 2003 by Mr. Vijay Garg and his family members. Later in January 2013, the Bansal family through its group company -- Aggarsain Fibers Limited and other family members, acquired the controlling stake in the company and the company replaced the obsolete facility comprising of ~1,200 rotors with new machines comprising of 2,688 rotors which can produce ~3,600 metric tonnes per annum of cotton yarn at count of 20s; commercial production from the new facility commenced in September 2013. Recent results The company reported a profit after tax (PAT) of INR0.1 crore on an operating income of INR27.4 crore in FY2015, as compared to a PAT of INR0.1 crore on an operating income of INR11.6 crore in FY2014. KARLA CONSTRUCTIONS: CARE Assigns B+ Rating to INR7cr LT Loan ------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Karla Constructions. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 7.00 CARE B+ Assigned Short term Bank Facilities 5.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Karla Constructions (KC) derive strength from the proprietor's extensive experience in the construction industry, its registration as class 1 government contractor and built-in price escalation clause in the contracts. The ratings are, however, constrained by KC's small scale of operations with limited order book and complete dependence on a single client (Karnataka State PWD) for business. Going forward, the ability to regularly win new contracts and execute them on time would remain the key rating sensitivity. Set up in 1972, KC, is a proprietorship firm based at Udupi, Karnataka engaged in executing civil construction contracts such as construction of ship harbours, roads, etc. The firm is a registered contractor with public works department (PWD) of Karnataka and is bound to undertake contracts within the state of Karnataka only. KC has registered total operating income of INR20.36 crore and PAT of INR0.22 crore in FY15 (Provisional; refers to the period April 1 to March 31) as against operating income of INR8.66 crore and PAT of INR0.15 crore in FY14. KAVERI GAS: CRISIL Suspends 'D' Rating on INR92MM LT Loan --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kaveri Gas Power Limited (KGPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D Letter of Credit 20 CRISIL D Long Term Loan 92 CRISIL D Proposed Long Term Bank Loan Facility 35.5 CRISIL D The suspension of ratings is on account of non-cooperation by KGPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KGPL is yet to provide adequate information to enable CRISIL to assess KGPL'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 June 2000 and promoted by Mr. S Elangovan as a special purpose vehicle, KGPL is a captive power producer with a natural gas-based power plant in Maruthur (Tamil Nadu). MAGICK WOODS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Magick Woods Exports Private Limited (MWEPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect MWEPL's moderate credit profile and volatile profitability. Net leverage was 5.2x in FY15 (FY14: 2.9x) and EBITDA interest coverage was 1.6x (2.8x). EBITDA margins fluctuated between 4.6% and 12.2% during FY12-FY15. Revenue declined almost by a quarter year-on-year and was INR1,190m in FY15 on the loss of a longstanding customers operating in the North American market. The company has introduced a new product line for which it has received firm orders worth around USD1.2m/month from existing customers for the next three years. This order commences from April 2016. The credit metrics are likely to improve with growth in the top line. 1HFY16 revenue was INR500m and the order book outstanding at end-October 2015 was INR261m which was to be executed by December 2015. The ratings are supported by MWEPL's comfortable liquidity position with the fund-based facilities being utilised at an average of 47.7% over the 12 months ended October 2015 and the over two decades of experience of the promoter in the manufacture and exports of bath vanities. Moreover, the company manufactures products against confirmed orders only, which mitigates any inventory risks. RATING SENSITIVITIES Positive: A significant increase in the scale and profitability leading to a sustained improvement in the credit metrics would be positive for the ratings. Negative: Any deterioration in the EBITDA margin leading to sustained deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Incorporated in 2003 by Mr Indrakumar Pathmanathan, MWEPL is engaged in the business of manufacture and exports of bath vanities to the US and Canada. MAHAVIR RICE: CARE Assigns B+/A4 Rating to INR75cr Loan ------------------------------------------------------- CARE assigns CARE B+ & CARE A4 ratings to the bank facilities of Mahavir Rice Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short-term 75 CARE B+/CARE A4 Bank Facilities Assigned Rating Rationale The rating assigned to bank facilities of Mahavir Rice Mills (MRM) is constrained by the weak financial risk profile of the firm, customer concentration risk, working capital intensive nature of operations, susceptibility of profitability margins to raw material prices and highly regulated and a fragmented industry with low entry barriers. However, the rating derives strength from the long track record of operations of the firm as well as its experienced promoters. Going forward, the ability of the firm to profitably scale up the operations, reduce the client concentration risk and improve its capital structure with more efficient working capital management would be the key rating sensitivities. Mahavir Rice Mills (MRM) was incorporated in 1987, is a partnership firm engaged in the business of rice milling, processing and manufacture of rice (80-85% PUSA 1121 and 15% other varieties of basmati rice) at its manufacturing facility at Dera Gama Road, Assandh in Karnal district (Haryana) with an installed capacity of 40,000 MTPA as on March 31, 2015. The firm is owned and managed by its four partners, viz. Mr. Suresh Kumar, Mr. Ramesh Chand, Mr. Raj Kumar and Mr. Chandgi Ram having vast experience in the rice milling and processing industry. In FY15 (Audited) (refers to period from April 1 to March 31), MRM had total operating income of INR155.77 crore and PAT of INR0.87 crore as against operating income of INR144.03 crore and PAT of INR1.36 in FY14. During Q1 FY16(unaudited, refers to the period April 01 to June 30) the firm reported an operating income of INR36.77 crore and PBT of INR0.22 crore. NIKITA CORPORATION: CRISIL Assigns B+ Rating to INR85MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Nikita Corporation (Nikita). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 85 CRISIL B+/Stable The rating reflects Nikita's exposure to risks related to implementation and saleability of its ongoing project, accentuated by the initial stage of project implementation. The rating also factors in exposure to cyclicality inherent in the Indian real estate sector. These weaknesses are mitigated by the promoters' extensive experience in Navi Mumbai's real estate market. Outlook: Stable CRISIL believes Nikita will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if sizeable bookings of units and timely customer advances lead to substantial cash inflows. Conversely, the outlook may be revised to 'Negative' if slow bookings of units or delays in receipt of customer advances postpone project implementation and constrain liquidity. Nikita, a partnership firm set up in 2014 and promoted by Mr. Basant J Munot, Mr. Sorab S Munot and Ms. Indu B Munot, develops residential real estate projects mainly in Navi Mumbai. It is currently undertaking a residential real estate project, Indra Riverside, in New Panvel. PRAKASH INDUSTRIAL: ICRA Suspends D Rating on INR20.25cr Loan ------------------------------------------------------------- ICRA has suspended [ICRA]D rating assigned to the INR20.25 crore fund based and non-fund based limits of Prakash Industrial Infrastructure Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Prakash Industrial Infrastructure Pvt. Ltd. (PIIPL) was set up in 1975 as a partnership firm in the name of Prakash Construction. PIIPL was converted into a private limited company in 2006 with the increase in scale of operations. PIIPL is promoted by Mr. Dinesh Agrawal. The company undertakes civil construction primarily industrial building works for the private sector. Its operations are concentrated in Maharashtra, mainly in Thane, Khopoli, Taloja, Ambernath and Navi Mumbai. RANJEET AUTOMOBILES: Ind-Ra Assigns 'IND BB' LT Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Ranjeet Automobiles (RA) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect RA's moderate financial performance in FY15, as reflected in its net financial leverage (net debt/EBITDA) of 4.8x, EBITDA interest coverage (EBITDA/gross interest) of 1.4x, and revenue of INR2001m, according to the provisional financials for FY15, owing to its trading nature of business. The firm's liquidity is stretched and its limits were overutilised three times during the 12 months ended October 2015. RA has now increased its working capital limits to INR420m. However, the ratings benefit from the firm's association with 19 companies as authorised distributors, dealers and wholesaler (of vehicle spare parts, battery, inverter, oil, etc.) and A rated authorised service station of Maruti. RATING SENSITIVITIES Positive: A substantial increase in the revenue along with an improvement in the credit metrics will be positive for the ratings. Negative: Any deterioration in the interest coverage will be negative for the ratings. COMPANY PROFILE RA was incorporated on a small scale by founder and chairman Sardar Gurjeet Singh Ji Bajaj in 1982. The company is a diamond dealer of Exide Batteries for western India. RA has tie-ups with Microtek International P. Ltd., Luminous Power Technologies (P) Limited, Goodyear Tire and Rubber Comp., Bridgestone Corporation, J.K Tyre & Industries Ltd , Plati India Private Limited, Neo Wheels Ltd, Castrol India Limited, MRF Rubber Factory Limited and Su-Kam Power System. The firm is a proprietorship and is now managed by the two sons of Sardar Gurjeet Singh Bajaj - Taranjeet Singh and Inderjeet Singh. SAI RAGHAVENDRA: CRISIL Reaffirms B Rating on INR36.5MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of Sai Raghavendra Rice Industries (Sai Raghavendra) continues to reflect the firm's modest scale of operations in the intensely competitive rice milling industry, and susceptibility of profitability to changes in government regulations and paddy prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 36.5 CRISIL B/Stable (Reaffirmed) Long Term Loan 21.7 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 19.3 CRISIL B/Stable (Reaffirmed) SME Credit 2.5 CRISIL B/Stable (Reaffirmed) The rating also constrained on account of its average financial risk profile marked by modest net worth, moderate gearing and average debt protection metrics. These weaknesses are partially offset by promoters' extensive industry experience and assured offtake by Food Corporation of India. Outlook: Stable CRISIL believes Sai Raghavendra will continue to benefit over the medium term from promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of substantial and sustained improvement in revenue and profitability, or a substantial increase in net worth backed by capital infusion. Conversely, the outlook may be revised to 'Negative' in case of steep decline in profitability, or significant deterioration in capital structure, caused most likely by a stretch in working capital cycle. Set up in 2011 as a partnership firm, Sai Raghavendra mills and processes paddy into rice, rice bran, broken rice, and husk. The firm is managed by Mr. V Jagan and Mr. V Srinivas. Its rice milling unit is in Kolkulpally (Andhra Pradesh) and has capacity of 5 tonnes per hour. SHREE AMEYA: CRISIL Ups Rating on INR99MM LT Loan to B ------------------------------------------------------ CRISIL has upgraded its rating on the long-term bank facilities of Shree Ameya Public Charitable Trust (SAPCT) to 'CRISIL B/Stable' from CRISIL B-/Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8.5 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Long Term Loan 99 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Proposed Long Term 15 CRISIL B/Stable (Upgraded Bank Loan Facility from 'CRISIL B-/Stable') Term Loan 35 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') The rating upgrade reflects significant improvement in SAPCT's liquidity on the back of robust fee collection for academic year 2015-16. Healthy intake of students in the post-graduate diploma in management (PGDM) course coupled with commencement of a three- year course in interior designing (in affiliation with Yashwantrao Chavan Open University) during the year resulted in fee income increasing to around INR115 million in 2015-16 (refers to financial year, April 1 to March 31) from around INR83.5 million in 2014-15. CRISIL believes the trust's operating income will be around INR126.3 million in 2015-16. Operating surplus is expected to remain healthy at around 50 per cent in 2015-16; CRISIL believes that the trust's cash accrual will be around INR55.2 million, against a repayment obligation of INR27.5 million, in 2015-16. As on September 28, 2015, the trust had fixed deposits of around INR46.8 million, driven by robust fee collection. SAPCT's gearing improved to 0.73 times as on March 31, 2015, from 1.91 times as on March 31, 2014, on the back of donations received. Its net worth increased to INR132.6 million from INR72.7 million over this period supported by additional donations and a net surplus in 2014-15. CRISIL expects the gearing to improve to around 0.18 times over the medium term driven by steady accretion to reserves and no debt-funded capital expenditure (capex) plans. Debt protection metrics were comfortable with interest coverage and net cash accrual to total debt ratios at 4.7 times and 0.29 times in 2014-15. The rating reflects SAPCT's modest scale of operations in the competitive education sector. This rating weakness is partially offset by the benefits expected from the healthy demand prospects for the education sector and trust's healthy financial risk profile because of low gearing and comfortable debt protection metrics. Outlook: Stable CRISIL believes SAPCT will continue to benefit over the medium term from its established market position in the education sector. The outlook may be revised to 'Positive' in case of a substantial improvement in cash accrual on the back of a significant increase in fee collection, leading to a better financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, weakens, most likely because of low fee collection or debt-funded capex. SAPCT was registered in Mumbai under the Public Trust Act in September 2001, to set up educational institutions offering autonomous and university-affiliated courses in management. The trustees are Mr. Harishchandra Mishra (founder), his son Mr. Ashish Mishra, and other family members. The trust initially set up Aditya Institute of Management Studies and Research, at Borivali in Mumbai, spread over a campus of 0.89 acre, which currently offers the PGDM and master in management studies (MMS) courses. The trust then set up Aditya College of Architecture, which offers architecture courses, and Aditya College of Interior Design, which offers interior designing courses. It also has a banquet hall (Aditya Banquet Hall) which has a capacity of up to 1500 people, and has recently set up the Aditya Convention Centre, with a similar capacity. SAPCT received approval from the All India Council for Technical Development in July 2011 to offer the PGDM course. The trust subsequently got itself registered with Mumbai University for offering the MMS course. It has also received an approval from the Council of Architecture, New Delhi, for offering a degree course in architecture. SAPCT is currently offering an autonomous course for interior designing, but has recently got affiliated to Yashwantrao Chavan Open University and has also applied for affiliation with the Maharashtra Board of Technical Education. The trust reported a net surplus of INR7.7 million on net sales of INR58.2 million, for 2014-15, against a net deficit of INR17.8 million on net sales of INR35.2 million, for 2013-14. SIDDIQUE TRADING: CRISIL Suspends B+ Rating on INR100MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Siddique Trading Company Private Limited (STC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Cash Credit Limit 100 CRISIL B+/Stable Proposed Letter of Credit 450 CRISIL A4 The suspension of ratings is on account of non-cooperation by STC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, STC is yet to provide adequate information to enable CRISIL to assess STC'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 2009, STC, part of the Siddique group, commenced commercial operations in 2010-11 (refers to financial year, April 1 to March 31). The company mainly trades in steel and agricultural products, and plans to venture into the coal trading business this year. SIGNATURE CERAMIC: ICRA Reaffirms B+ Rating on INR3cr Cash Loan --------------------------------------------------------------- ICRA has reaffirmed rating of [ICRA]B+ for INR3.00 crore fund based cash credit facility and INR1.79 crore term loan facility of Signature Ceramic Private Limited. ICRA has also reaffirmed rating of [ICRA]A4 for INR1.40 crore short term non fund based facilities of Signature Ceramics Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 3.00 [ICRA]B+ reaffirmed Term Loans 1.79 [ICRA]B+ reaffirmed Bank Guarantee 1.40 [ICRA]A4 reaffirmed The reaffirmation of the ratings takes into account SCPL's weak financial profile as reflected by low profitability, high gearing levels and modest coverage indicators. The ratings are also constrained by SCPL's small size of operations which along with the high competitive intensity is likely to exert pressure on margins. ICRA also notes the dependence of operations and cash flows of the company on the performance of the real estate industry which is the main consumer sector and vulnerability of its profitability to increasing prices of gas and power. The ratings continue to favorably consider the experience of the key promoters in the ceramic industry and location advantage enjoyed by SCPL giving it easy access to raw material. Signature Ceramic Private Limited (SCPL) is a wall tiles manufacturer with its plant situated at Morbi, Gujarat. The company was established in October 2009, while the company commenced its operations in July 2010. Signature Ceramics is managed by Mr. Pravin Kundariya and Mr. Girish Loriya along with other directors. The plant has an installed capacity to produce 18 lacs boxes of wall tiles per annum. Signature Ceramics currently manufactures wall tiles of size 12" X 12", 12" X 18" and 12"X 24 with the current set of machineries at its production facilities. Recent Results For the year ended 31st March 2015, the company reported an operating income of INR18.29 crore and profit after tax of INR0.15 crore. SPECTRUM COMPLEX: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Spectrum Complex Private Limited (SCPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The agency has also assigned SCPL's INR183.10m long-term loan an 'IND B+' rating with Stable Outlook. KEY RATING DRIVERS The ratings reflect the nascent stage of SCPL's ongoing project Arch Square in Salt Lake, Kolkata, and the associated time and cost overrun risks. The construction is likely to be completed by December 2017. The rating also considers the fact that the company has only booked total advances of INR30.00m till October 2015 which is 5.39% of the total project cost. The ratings also consider the promoter's experience of completion of several commercial projects over the past decade, and benefits from the strategic location of the project close to the Salt Lake Sector 5 area which is one of the prime commercial areas in Kolkata. RATING SENSITIVITIES Positive: The timely completion of the project within the projected cost outlay will be positive for the ratings. Negative: Any delays or cost overrun in the project will lead to a negative rating action. COMPANY PROFILE SCPL was incorporated in 2007 for the development of Arch Square. Lalit Kumar Jain and Surendra Kumar Sarogi are the promoters of the company. The company has a registered office in Park Street, Kolkata and a corporate office in AJC Bose Road, Kolkata. The directors belong to the Arch Group. Arch Group was established in 2005. Rajendra Kumar Sarogi, Rabindra Bacchawat, Lalit Kumar Jain and Rajesh Osatwal are the promoters of the Arch Group. They have successfully completed several residential and commercial projects. Commercial projects are particularly corporate and professional office centres. SUNSHINE BUILDERS: ICRA Assigns B+ Rating to INR10cr Term Loan -------------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B+ to the INR10.00 crore term loan of Sunshine Builders. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term: Term Loan 10.00 [ICRA]B+ assigned The assigned rating takes into account the expertise of the promoter with over two decades of experience in the real estate industry. The rating also takes into account the low regulatory risks with major statutory approvals for the ongoing project- Silicon Pride in place, presence of clear land title and the favorable location project near Whitefield, having close proximity to social infrastructure including international schools, shopping malls and multi-specialty hospitals. The rating is, however, constrained by the execution risk associated with the ongoing project, Silicon Pride, which is at the nascent stage of construction with significant pending cost to be incurred and bookings yet to commence. Moreover, with a significant unsold inventory in the completed project, Silicon City, the firm is exposed to market risk. However, any further sales and collections from the completed project could be utilized to fund the cost to be incurred for the ongoing project after the repayment of the loan taken for the Silicon City project. ICRA also notes the small scale of operations of the entity which restricts operational and financial flexibility to some extent as indicated by the stretched liquidity profile, on account of high level of inventory (unsold property). ICRA also takes into account the exposure of the ongoing project to funding risks, with dependence on customer advances, and the risk associated with a partnership firm with no restrictions on capital drawdown. The rating factors in the high geographic concentration risk with most of the projects being situated near Whitefield, Bangalore, which has a significant supply from other developers. Going forward, the firm's ability to improve the sales velocity for both the projects and execute the ongoing project in a timely manner will be the key rating sensitivities. Sunshine Builders (SB) is a partnership firm formed in the year 2012 with Mr. T Janardhan Rao and Mr. M Ramesh as partners and was reconstituted in September, 2013 with the introduction of a third partner Mr. M Satish. The entity is engaged in real estate development and has completed two residential projects in Bangalore since its inception. The management has been committed in providing innovative apartments at an affordable cost. They are currently developing a residential apartment project, 'Silicon Pride' at Whitefield, Bangalore. Recent Results In FY 2014-15, as per the provisional results, the firm reported an operating income of INR0.7 crore with a net profit of INR0.04 crore, as against an operating income of INR13.50 crore and a net profit of INR0.8 crore in FY 2013-14. SWATI SYNTHETICS: CRISIL Assigns B+ Rating to INR73MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Swati Synthetics (Swati). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 73 CRISIL B+/Stable Bank Guarantee 2 CRISIL A4 Cash Credit 5 CRISIL B+/Stable The ratings reflect Swati's weak financial risk profile, because of a small net worth and high gearing, and its modest scale of operations in the intensely competitive embroidery designing business. These rating weaknesses are partially offset by RC's established track record in the textile industry. Outlook: Stable CRISIL believes Swati will continue to benefit over the medium term from its established relationships with customers and the superior quality of embroidery designs. The outlook may be revised to 'Positive' if the financial risk profile improves, most likely through infusion of fresh capital or significant increase in revenue and profitability. Conversely, the outlook may be revised to 'Negative' if there is significant deterioration in working capital management or decline in profitability or a large debt- funded capital expenditure, leading to low net cash accrual. Swati, a proprietorship concern, set up by Mr. Ramniwas Gupta in 2009, is engaged in embroidery designing on fabrics. The firm is part of the Jaybharat group. Swati reported a profit after tax (PAT) of INR1.7 million on net sales of INR74.7 million in 2014-15 (refers to financial year, April 1 to March 31), vis- a -vis a PAT of INR2.1 million on net sales of INR42.7 million for 2013-14. SWISS GARNIER: CRISIL Reaffirms B- Rating on INR103.3MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Swiss Garnier Genexiaa Sciences (SGGS) continue to reflect SGGS's initial phase of operations in the intensely competitive formulations industry, and the firm's below-average financial risk profile, marked by weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of the firm's promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL A4 (Reaffirmed) Cash Credit 70 CRISIL B-/Stable (Reaffirmed) Letter of Credit 7 CRISIL A4 (Reaffirmed) Proposed Short Term Bank Loan Facility 61.7 CRISIL A4 (Reaffirmed) Term Loan 103.3 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SGGS will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm's revenue and profitability improve significantly while it efficiently manages its working capital requirements, leading to healthy cash accruals. Conversely, the outlook may be revised to 'Negative' if SGGS's revenue and profitability do not improve, or if its working capital cycle is stretched, resulting in weakening of its liquidity or capital structure. Update SGGS reported revenue of INR316 million for 2014-15 (refers to financial year, April 1 to March 31) as compared to revenues of INR52 million in 2013-14. Healthy revenue growth has been due to improvement in capacity utilization and improved demand from its customers. The firm also achieved operating break-even in 2014-15 as compared to operating loss of 53 percent in 2013-14. CRISIL believes that SGGS's annual revenue will be in the range of INR400 million to INR500 million over the medium term, given its outstanding order book of INR120 million to be executed in the next two months. The firm's financial risk profile is marked by a moderate net worth, low gearing, and below-average debt protection metrics. The firm had a net worth of INR213 million as on March 31, 2015; the net worth is expected to remain at the same level over the medium term. SGGS's gearing was low at 0.80 times as on March 31, 2015. Owing to no debt-funded capital expenditure, the gearing will remain at the same level over the medium term. The firm has weak debt-protection metrics with negative net cash accruals to total debt ratio and nil interest coverage ratio in 2014-15. Any improvement in the metrics is highly dependent on the stabilisation of operations. The firm has weak liquidity with negative cash accruals against term debt obligations INR30 million and moderate bank limit utilisation, in 2014-15. However, it gets unconditional fund support from its partners for repayment of the term loans. The firm's bank lines have been highly utilised at an average of 88 per cent during the 12 months through April 2015. SGGS is a Chennai-based partnership firm started by Mr. M. Theivendran and Mrs. T Rethinavall in 2011. The firm manufactures tablets, capsules, liquid-orals, and food supplements. It has a manufacturing unit in Sikkim, where it began commercial operations in August 2013. TRANSNATIONAL: CRISIL Reaffirms B+ Rating on INR25MM Cash Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Transnational continue to reflect the firm's improved but modest scale of operations, and average financial risk profile, marked by small net worth and weak debt protection metrics. These rating weaknesses are partially offset by the promoters' extensive experience in the chemical trading industry and established relationships with customers and suppliers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable (Reaffirmed) Letter of Credit 62 CRISIL A4 (Reaffirmed) Proposed Buyer Credit Limit 10 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes Transnational will continue to benefit over the medium term from the promoters' extensive industry experience and steady relationships with customers and suppliers. The outlook may be revised to 'Positive' if substantial and sustained improvement in revenue and profitability, efficient working capital management, or sizeable equity infusion strengthens the financial risk profile. Conversely, the outlook may be revised to 'Negative' in the event of a decline in revenue or profitability, or deterioration in capital structure on account of large working capital requirements. Transnational is a partnership firm established by Mr. Pawan Kumar Agarwal in 2009. The firm trades in chemicals such as polyvinyl chloride resin, polyethylene, and ethylene vinyl acetate. It also trades in metals such as copper, scrap, iron, and mild steel plates. The firm reported a book profit of INR1.46 million on net sales of INR297.2 million for 2014-15 (Rs.1.45 million and INR199.1 million, respectively, for 2013-14). VARIDHI HYGIENE: ICRA Suspends B- Rating on INR9.25cr Term Loan --------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B- assigned to the INR2.00 crore cash credit facility and INR9.25 crore term loan facility of Varidhi Hygiene Products Private Limited. ICRA has also suspended the short term rating of [ICRA]A4 assigned to the INR2.54 crore short-term non-fund based facility of VHPPL. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 2.00 [ICRA]B- suspended Term Loan 9.25 [ICRA]B- suspended Non-fund Based, Short-term facilities 2.54 [ICRA]A4 suspended Incorporated in April 2011, Varidhi Hygiene Products Private Limited (VHPPL) is engaged in manufacturing of tissue rolls at its production facility located at Savli near Vadodara in Gujarat with a production capacity of 25 metric tonnes per day. The company started commercial production from April 2014. The company is promoted by Mr. Amit Talati and Mr. Chirayu Kothari who have long- standing experience in the paper industry by way of their association with other related companies. VEE TECHNOLOGIES: CRISIL Suspends B- Rating on INR64.2MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Vee Technologies Private Limited (VTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 64.2 CRISIL B-/Stable Term Loan 48.8 CRISIL B-/Stable The suspension of rating is on account of non-cooperation by VTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VTPL is yet to provide adequate information to enable CRISIL to assess VTPL'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' VTPL, incorporated in 2002, is a part of the Sona Valliappa Group that is based in Bangalore (Karnataka). VTPL has set up a BPO and provides data services to its customers located in the US, Australia, India, and Europe. The company has further diversified its operations to data services for Unique Identification Authority of India (UIDAI) project of the Government of India. VIPUL OVERSEAS: CRISIL Cuts Rating on INR45MM Cash Loan to B+ ------------------------------------------------------------- CRISIL has downgraded the ratings on the bank facilities of Vipul Overseas Private Limited (VOPL; part of the Vipul Overseas group) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Letter of Credit 95 CRISIL A4 (Downgraded from 'CRISIL A4+') The rating downgrade reflects the CRISIL's belief that Vipul Overseas groups' financial risk profile, particularly liquidity has deteriorated in 2014-15 (refer to financial year April 1 - March 31) due to stretch in working capital requirements, marked by high debtors of 127 days as on March 31, 2015, which has resulted in stretch in payment to the creditors marked by payable days of 97 as on March 31, 2015. CRISIL believes that the liquidity will remain under pressure over the medium term due to stretched working capital requirements. The rating downgrade also reflects the modest financial risk marked by high TOLTNW of 4.83 times as on March 31, 2015 on account of high short term debt availed to support the working capital requirements and low interest coverage ratio of 1.26 times for 2014-15 on account of high interest and finance charges. CRISIL believes that the financial risk profile will remain modest over the medium term due to high working capital requirements. The ratings reflect the extensive experience of the Vipul Overseas group's promoters in the paper trading industry, and the group's moderate risk management policies, marked by low inventory risk, moderate debtor risk and supplier risk. These rating strengths are partially offset by the Vipul Overseas group's weak financial risk profile, marked by a high total outside liabilities to tangible net worth ratio and weak debt protection metrics, low operating profitability and modest scale of operations in the intensely competitive paper trading industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Vipul Overseas Private Limited (VOPL) and its group company, Bangalore Paper Store (BPS). This is because both these entities together referred to as the Vipul Overseas group, share common infrastructure and have a similar procurement process. Moreover, both the group entities trade in similar products such as coated and uncoated paper, newsprint, and waste paper. Outlook: Stable CRISIL believes that the Vipul Overseas group will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the group improves its capital structure either by equity infusion or registers significant improvement in its topline and profitability, leading to higher than expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the Vipul Overseas group registers significant weakening in its liquidity or capital structure, or faces pressure on its profitability, or if it undertakes a larger-than-expected, debt-funded capital expenditure programme. BPS was set up as a proprietorship concern in 1991 by New Delhi- based Mr. Surinder Garg. BPS trades in coated and uncoated paper, newsprint, and waste paper. VOPL was set up as a private limited company in 1992 by the New Delhi-based Garg family. Mr. Surinder Garg is the key promoter and managing director of the company. The other directors in the company are Mr. Surinder Garg's father Mr. Jai Dev Ram Garg and wife Mrs. Archana Garg. VOPL also trades in coated and uncoated paper, newsprint, and waste paper. YOGESHWARI PETRO: CRISIL Assigns B+ Rating to INR30MM Cash Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Yogeshwari Petro Chemicals Private Limited (YPPL). The ratings reflect the early stage of and modest scale of operation and below-average financial risk profile because of small net worth and average capital structure. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable Bank Guarantee 20 CRISIL A4 Cash Credit 30 CRISIL B+/Stable These rating weaknesses are mitigated by the healthy domestic demand prospects for ethanol and fund support from the promoters. For arriving at the rating, CRISIL has treated unsecured loans from promoters a neither debt nor equity, as they are expected to remain in the business over the medium term. Unsecured loans from promoters as on March 31, 2015 were INR20 million. Outlook: Stable CRISIL believes YPPL will benefit over the medium term from improving demand prospects for ethanol in India. The outlook may be revised to 'Positive' in case of better-than-expected ramp up in sales and higher cash accrual during the early stage of operations. Conversely, the outlook may be revised to 'Negative' if the financial risk profile and liquidity weaken because of low cash, sharp increase in working capital requirement, or any debt- funded capital expenditure. YPPL was incorporated in 2003 by Mr. Shrikant Patil and family. The company manufactures Ethanol from rectified spirit which has applications in petroleum industry for blending with petrol. YPPL currently has installed capacity of 30,000 litres per day and it commenced commercial operations from March 2015. ==================== N E W Z E A L A N D ==================== SENTRY HILL: Liquidation Case Adjourned to February 2016 -------------------------------------------------------- Stuff.co.nz reports that settlement discussions are ongoing between Lepperton winery Sentry Hill and New Zealand Customs over unpaid excise tax totalling about NZ$220,000. The report relates that the matter was called in the High Court at New Plymouth on Nov. 17 and an adjournment was sought by Nina Laird, on behalf of New Zealand Customs, to allow time for documents to be filed in relation to liquidation proceedings against the fruit winery. This request was consented to by Sentry Hill's lawyer Kelsey McEwan, the report says. Stuff.co.nz notes that Associate Judge Hannah Sargisson adjourned the case until February 16. In October, an application made by Auckland company Endeavour Glass Packaging Limited was withdrawn against Sentry Hill after settlement was reached over a sum of NZ$34,480.52, the report adds. Sentry Hill Winery Limited is a New Plymouth fruit winery. ================= S I N G A P O R E ================= M2 ACADEMY: Closure Leaves Some Teachers In The Lurch ----------------------------------------------------- The Straits Times reports that when private school M2 Academy announced its sudden closure last month, it said it would arrange for its students and teachers to go to two other education institutions. But a month on, six of its 15 lecturers have been left out of the arrangement, as their modules had been discontinued by the two private schools, PSB Academy and Kaplan, the report says. And all M2 lecturers are still waiting to be paid for their services for September and October, according to the report. The report says M2 opened last year at orchardgateway@emerald mall to offer diplomas and degree courses from institutions like the University of South Australia (UniSA). It had about 250 students, including those taking online courses. M2 founder Mark Coggins, former president of Kaplan's Asia Pacific unit, told The Straits Times last month the school had to fold because its investors had pulled funding. M2 is now in liquidation, the report notes. ==================== S O U T H K O R E A ==================== LOTTE GROUP: Duty-free Shop License Loss Adds to Troubles --------------------------------------------------------- Japan Today reports that troubled South Korean retail giant Lotte, already struggling with a prolonged founder-family feud, has seen its business woes deepen with the loss of the state license for one of its biggest duty-free shops ahead of a key IPO. The report relates that the country's fifth-largest business group suffered its latest body-blow at the weekend when South Korea's customs agency awarded its concession to a rival bidder -- the heavy industries giant Doosan Co. The licence covered a 10,990-square-meter store in South Korea's tallest skyscraper -- the Lotte World Tower and Mall complex in downtown Seoul, the report says. According to the report, Lotte, which had held the license for five years, had already invested KRW300 billion ($255 million) in the store and the customs agency decision shattered its ambitions to grow it into the world's largest duty-free outlet over the next decade. The setback was particularly badly timed given the preparations for an initial public offering of shares in Lotte's hotel unit, which runs the group's duty-free business. Japan Today relates that the duty-free chain is the largest franchise of its kind in South Korea and the third-largest in the world, racking up sales of KRW4.2 trillion last year. Hotel Lotte vowed on Nov. 14 to push ahead with the listing, but analysts said the loss of the license for the Lotte World store would be felt, the report relates. "Investors are concerned it will hurt Hotel Lotte's overall profits," the report quotes Park Jong-Dae, analyst at Hana Financial Securities, as saying. "As a result, the company's valuation may fall when it goes public," he said, noting that duty-free shops accounted for more than 80% of Hotel Lotte's overall sales. Founded in Tokyo in 1948 by Shin Kyuk-Ho, Lotte has a vast network of businesses including department stores, hotels and amusement parks in South Korea and Japan, with combined assets valued at more than $90 billion. ********* 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 ***