/raid1/www/Hosts/bankrupt/TCRAP_Public/151218.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, December 18, 2015, Vol. 18, No. 250
Headlines
A U S T R A L I A
CONALPIN PTY: ASIC Acts Against Melbourne Liquidator
MJ AND CM: Goldstar Buys Major Assets
QANTAS: 1H 2016 Profit Guidance is Credit Pos., Moody's Says
STREAM GROUP: First Creditors' Meeting Set For Dec. 30
C H I N A
FOSUN INT'L: Moody's Affirms Ba3 CFR; Changes Outlook to Neg.
ORDOS CITY: Developer May Default on Bonds This Week
H O N G K O N G
SUPERB SUMMIT: HK Securities Watchdog Halts Shares Trading
YUNG KEE: Set to Close as Last Ditch Effort Fails
I N D I A
70 REALTY: ICRA Suspends 'D' Rating on INR10cr LT Loan
ACME COTSYN: ICRA Suspends B+ Rating on INR10.10cr Loan
ANANT RICE: ICRA Reaffirms B+ Rating to INR3.50cr Loan
ASPI CARS: ICRA Withdraws B+ Rating on INR13cr Loan
BALAJI STAKE: CRISIL Suspends 'D' Rating on INR85MM Cash Loan
BOMMIDALA PURNAIAH: CRISIL Cuts Rating on INR237.7MM Loan to B-
DASMESH MECHANICAL: CRISIL Ups Rating on INR130MM Loan to B-
EXCEL TIMBERS: CRISIL Cuts Rating on INR70MM Loan to 'D'
FUTEC SHELTERS: ICRA Suspends B+ Rating on INR50cr Loan
GARDENIA INDIA: ICRA Suspends B+ Rating on INR90cr Loan
GREEN POLYTUBES: ICRA Assigns 'B' Rating to INR4.60cr Loan
GREENCO SYSTEMS: ICRA Assigns SP 3D Grading
HIMALAYA POLYURETHANE: CRISIL Suspends B+ Rating on INR47MM Loan
IMAGE HEALTH: CRISIL Suspends 'D' Rating on INR200MM Loan
INFRASTRUCTURE LOGISTIC: CRISIL Ups Rating on INR89.5M Loan to B+
KAMDHENU COMMERCIAL: CRISIL Suspends 'D' Rating on INR350MM Loan
KANS WEDDING: CRISIL Assigns 'B' Rating to INR45MM Cash Loan
KESHAVA REDDY: CRISIL Suspends 'D' Rating on INR35MM LT Loan
KOLLI RAMAIAH: CRISIL Suspends 'D' Rating on INR60MM LT Loan
KOMARLA HATCHERIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
LEITWIND SHRIRAM: Ind-Ra Affirms 'IND D' Long-Term Issuer Rating
M V AGRO: ICRA Assigns B+ Rating to INR11.50cr Term Loan
MANN RESIDENCY: CRISIL Assigns 'D' Rating to INR190MM Term Loan
MEDICO REMEDIES: ICRA Suspends B+ Rating on INR6.50cr Loan
NAYEK AGRIPRODUCTS: ICRA Suspends D Rating on INR9.21cr Loan
NEEDS SRI: CRISIL Suspends 'D' Rating on INR260MM Cash Loan
OMKAR INFRACON: CRISIL Cuts Rating on INR39.3MM Term Loan to B
PAGODA STEELS: CRISIL Cuts Rating on INR120MM Cash Loan to 'D'
PARAKH OILS: ICRA Withdraws B+ Rating on INR2.0cr Term Loan
R. L. INDUSTRIES: CRISIL Assigns 'B' Rating to INR60MM Loan
RADHE HURKAT: CRISIL Reaffirms 'B' Rating on INR50MM Cash Loan
RAMKY PHARMA: ICRA Suspends B- Rating on INR15cr Loan
SARDAR INDUSTRIES: CRISIL Reaffirms 'B+' Rating on INR80MM Loan
SMC POWER: ICRA Suspends 'B' Rating on INR203.64cr Loan
SOLAS FIRE: CRISIL Reaffirms B+ Rating on INR45MM Cash Loan
SRI SANTHOSHIMA: CRISIL Reaffirms 'B' Rating on INR100MM Loan
STRONGWIRE INDUSTRIES: ICRA Withdraws B+ Rating on INR8.30cr Loan
SUDARSHAN BEOPAR: Ind-Ra Assigns IND BB+ Long-Term Issuer Rating
SUNDIAL MINING: CRISIL Reaffirms B+ Rating on INR90MM Cash Loan
TROIX CHEMICAL: ICRA Suspends 'B' Rating on INR10cr Loan
V.S. BUILDCON: ICRA Suspends B+ Rating on INR10cr LT Loan
VARUN CASTINGS: ICRA Suspends B+ Rating on INR4.45cr Loan
VEEAAR FABWARE: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
VISHNU CARRIERS: CRISIL Suspends 'D' Rating on INR90MM Loan
YEGNA MANOJAVAM: CRISIL Suspends 'D' Rating on INR242.6MM Loan
N E W Z E A L A N D
INTAGR8 LTD: Placed in Liquidation
- - - - -
=================
A U S T R A L I A
=================
CONALPIN PTY: ASIC Acts Against Melbourne Liquidator
----------------------------------------------------
Australian Securities and Investment Commission has applied to the
Federal Court in Melbourne to enquire into the conduct of
Melbourne liquidator, Mr Ross John McDermott, concerning the
performance of his duties as a registered liquidator, voluntary
administrator and deed administrator of twenty-six companies to
which he had been appointed.
ASIC seeks orders that Mr McDermott be removed as liquidator,
voluntary administrator and deed administrator of the twenty-six
companies and that he be prohibited from holding the office of
liquidator, provisional liquidator, voluntary administrator or
administrator of a deed of company arrangement for such period as
the Court sees fit.
The matter has been listed for directions in the Melbourne Federal
Court on Feb. 5, 2016. ASIC will not comment upon the proceeding
until the court has determined whether an enquiry will be held and
if so, then again after the court has made final orders.
Under the Corporations Act 2001, ASIC may apply to the Court to
undertake an enquiry where it appears that an insolvency
practitioner has not faithfully performed, or is not faithfully
performing, his or her duties as a liquidator or receiver or
adhering to relevant legal requirements.
Where the Court grants ASIC's application for an enquiry, it may
conduct an enquiry and examination of the insolvency practitioner.
ASIC seeks orders from the Federal Court concerning Mr McDermott's
role as the registered liquidator, voluntary administrator or deed
administrator in relation to the following companies:
Liquidator
Conalpin Pty Ltd ACN 064 718 298 (Strike Off)
Dolmear Pty Ltd ACN 069 052 455 (Strike Off)
Rapid Glass Solutions Pty Ltd ACN 132 764 240 (Deregistered)
Total Elevator Services Pty Ltd ACN 121 507 426
Voluntary Administrator and Deed Administrator
Interactive Projects (VIC) Pty Ltd ACN 070 292 509
(Deregistered)
Altaus Pty Ltd ACN 125 461 958 (Deregistered)
A.C.N. 105 438 926 Pty Ltd ACN 105 438 926, formerly known as
Speedfloor Australia Pty Ltd (Deregistered)
Hart Empire Pty Ltd ACN 118 125 198 (Deregistered)
Machunt Pty Ltd ACN 083 214 340 (Deregistered)
Megavend Pty Ltd ACN 124 853 694 (Deregistered)
Raft Technologies Pty Ltd ACN 110 414 134 (Deregistered)
Northview Custom Build Pty Ltd ACN 142 477 236
Pixel Property One Pty Ltd ACN 131 623 231
Voluntary Administrator and Deed Administrator
Trackerjack Pty Ltd Australasia Pty Ltd ACN 091 648 618
Tegman Pty Ltd ACN 139 630 336 (Strike Off))
Limos Online Australia Pty Ltd ACN 101 677 132 (DOCA Ceased)
Rizzo Constructions Pty Ltd ACN 091 162 051
Hooked-On Constructions Pty Ltd ACN 104 880 828 (DOCA ceased)
Rock Flat Valley Pty Ltd ACN 065 327 559 (DOCA ceased)
Procus West Pty Ltd ACN 059 852 452 (DOCA ceased)
Voluntary Administrator, Deed Administrator and Liquidator
Fontana Property Group ACN 102 756 178
TSM Selection Pty Ltd ACN 099 151 765
Dancol Constructions Pty Ltd ACN 100 756 938
Stoneleighton Developments Pty Ltd ACN 110 525 794
New Point Properties Pty Ltd ACN 123 070 164
Lefkas Builders Pty Ltd ACN 007 169 002 (Deregistered)
MJ AND CM: Goldstar Buys Major Assets
-------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Goldstar Transport
has purchased the major assets of MJ and CM West Transport
Services, The purchase comes 9 months following the changing of
hands of another transport business focused on the Pilbara region,
Dissolve.com.au says.
The purchase was completed by Goldstar Transport with the
receivers Ferrier Hodgson, the report relates.
QANTAS: 1H 2016 Profit Guidance is Credit Pos., Moody's Says
------------------------------------------------------------
Moody's Investors Service says that Qantas Airways Ltd's
announcement that it expects to report an underlying profit before
tax of AUD875 million to AUD925 million for 1H FY2016 (July --
December 2015) is credit positive and reflects the strong effects
of its transformation program and other factors.
The outlook on Qantas' ratings is positive. The ratings are: Ba1
corporate family rating; Ba1 senior unsecured long-term rating;
(P)Ba1 senior unsecured MTN program rating; and (P)NP short-term
MTN program rating, or non-prime (NP) short-term rating.
"Qantas' guidance for the first half of FY16 reflects the
continued strong performance of the company, highlighting the
airline's considerable progress on its transformation and cost
saving initiatives" says Matthew Moore, a Moody's Vice President
and Senior Credit Office, adding "the guidance also reflects the
impact of improved operating and competitive conditions".
"Qantas' earnings have also been benefitting from the significant
drop in average fuel prices over the period and the depreciation
in the Australian dollar, which we expect will continue to provide
benefits, especially for its international segment," adds Moore.
The company achieved some AUD894 million in savings in the
previous year of FY2015, a level well above the AUD600 million it
had originally projected, and representing around 50% of the AUD2
billion in cost- and productivity-led savings it is targeting by
FY2017. Given the company's successful track record under the
program, Moody's expects continued execution towards cost targets,
including achieving the around AUD450 million of transformation-
led savings targeted in FY16.
As indicated by the positive outlook, Moody's expect continued
earnings improvement will allow the company to achieve strong
credit metrics for its current rating level. Moody's expects
leverage to improve from FY15 levels and to continue to build
positive momentum for the credit profile. Based on current
guidance and Moody's expectations for earnings improvement through
the remainder of FY16, debt to EBITDA (Moody's adjusted) is likely
to improve to around 2.5x or less. This compares to the around
3.0x the company achieved in FY15.
The ratings could experience further positive momentum if Qantas
is able to continue to execute on its transformation program and
current operating conditions are sustained in both the domestic
and international markets. Specifically, ratings could be
upgraded if Qantas is able to maintain leverage below 4.0x under
several scenarios, including weaker operating conditions; a return
to increased competition -- particularly in the domestic market;
increasing fuel prices and/or a stronger Australian dollar.
The ratings could face negative pressure if Qantas is unable to
sustain and/or build on recent improvements in the core
profitability of its international and domestic businesses, or to
reduce debt to levels commensurate with its sustainable earnings.
Financial metrics that Moody's would look for include Debt/EBITDA
remaining above 5.0x on a sustained basis. In addition, a
material deterioration in liquidity could negatively impact the
carrier's ratings.
Qantas is Australia's largest domestic carrier and estimates its
total domestic market share at around 63%.
STREAM GROUP: First Creditors' Meeting Set For Dec. 30
------------------------------------------------------
John Park and Kelly-Anne Trenfield of FTI Consulting were
appointed as administrators of Stream Group Aust Pty Ltd on Dec.
16, 2015.
A first meeting of the creditors of the Company will be held at
22 Market Street, in Brisbane, Queensland, on Dec. 30, 2015, at
10:00 a.m.
=========
C H I N A
=========
FOSUN INT'L: Moody's Affirms Ba3 CFR; Changes Outlook to Neg.
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on Fosun
International's Ba3 corporate family rating to negative from
stable.
Moody's has also affirmed its Ba3 corporate family rating as well
as the rating on the senior unsecured bonds issued by Sparkle
Assets Limited and guaranteed by Fosun.
The change in outlook follows Fosun's announcement on Dec. 11,
2015, that Mr Guangchang Guo -- executive director, chairman and
the ultimate controlling shareholder of Fosun -- had been
assisting in certain investigations carried out by Mainland
China's judiciary.
RATINGS RATIONALE
"The negative outlook reflects Moody's expectation that Mr Guo's
involvement in the investigation adds uncertainty over the
company's ability to address the refinancing of its high levels of
short-term debt and the funding of its investments," says Lina
Choi, a Moody's Vice President and Senior Credit Officer, as well
as the International Lead Analyst for Fosun.
Fosun's Ba3 corporate family rating reflects its: (1) diversified
business profile; and (2) the multiple funding channels it has
available to support its investments.
However, the company's rating is constrained by: (1) the evolving
character of its investment strategy; (2) its rapid expansion into
new businesses through acquisitions, which increases execution
risks; and (3) its debt-funded expansion, resulting in a weak
financial profile and liquidity position.
There is no rating upgrade pressure, given the negative outlook.
However, the rating outlook could return to stable if (1) the
company's operation and access to the onshore and offshore debt
and equity markets are unaffected by the reported investigation;
and (2) the company demonstrates an ability to refinance its debt
and raise equity, such that the holding company's liquidity
position is adequate.
On the other hand, downgrade pressure could arise if: (1) the
company fails to raise enough equity capital or speed up its asset
disposals to fund its acquisitions; (2) it continues aggressive
debt-funded growth; (3) the quality of its investment portfolio
deteriorates and contagion risk from its investees increases;
and/or (4) the company's financial profile and liquidity position
deteriorate significantly.
Credit metrics indicating downward rating pressure include: (1)
Fosun's MVL at the holding company level exceeding 50%-60%; and/or
(2) an interest coverage ratio and an adjusted liquidity ratio
below 0.75x-1.0x and 1.5x-2.0x respectively, for a sustained
period.
The principal methodology used in these ratings was Global
Investment Holding Companies published in October 2007.
Fosun Group was founded in 1992. Its core businesses comprise:
(1) insurance; (2) steel; (3) property; (4) pharmaceuticals and
healthcare; and (5) mining. The company is also involved in asset
management.
Fosun was 71.29% beneficiary-owned by its chairman and co-founder,
Mr. Guangchang Guo, and the company's three other co-founders as
of end June 2015.
The Local Market Analyst for this rating is Kai Hu, +86 (21)
20574012.
ORDOS CITY: Developer May Default on Bonds This Week
----------------------------------------------------
Bloomberg News reports that a developer from one of China's so-
called ghost towns said it's struggling to repay bonds that are
coming due this week.
Bloomberg relates that Ordos City Huayan Investment Group Co.,
based in Ordos in the northern Inner Mongolia region, said
uncertainty arose after bondholders opted for the early redemption
of CNY1.14 billion ($176.7 million) of notes on
Dec. 17, according to a statement on the Chinabond website on Dec.
4. Erdos City Infrastructure Construction Investment Co., a local
government financing vehicle at Ordos, provides a guarantee for
the bonds, the Chinabond statement said, Bloomberg relays.
According to the report, China's worst economic slowdown in a
quarter century is adding stress to smaller developers even after
the government allowed property companies to sell more bonds and
eased restrictions on home purchases. Bloomberg says Ordos City
Huayan's admission comes only four days after pig iron producer
Sichuan Shengda Group Ltd. became at least the seventh Chinese
company to renege on local debt obligations this year.
"It's uncertain if the guarantor can bail out Ordos City Huayan's
bond," Bloomberg quotes Zhang Chao, a bond analyst at China
Investment Securities Co. in Shenzhen, as saying. "The LGFV itself
is facing operation problems."
Bloomberg adds that the developer also said it may not be able to
repay the CNY94.56 million of interest due the same day.
Ordos City Huayan sold CNY1.2 billion of 2018 bonds with a coupon
rate of 7.88 percent in December 2012, Bloomberg notes. The
company is facing a cash shortage and hasn't raised enough funds
for the debt repayment, according to the statement obtained by
Bloomberg.
Bloomberg says the coal-mining city of Ordos, whose fortunes
reversed as the commodity's boom turned to bust, is grappling with
a slumping Chinese property market that researcher SouFun Holdings
Ltd. said has led to more than 10 "ghost towns."
================
H O N G K O N G
================
SUPERB SUMMIT: HK Securities Watchdog Halts Shares Trading
----------------------------------------------------------
South China Morning Post reports that Hong Kong's securities
watchdog has ordered the trading of Superb Summit International
Group's shares to be halted indefinitely, over a year after US
short-seller Muddy Waters alleged the company had fabricated
almost all of its revenue in 2013.
According to the report, Superb said in an exchange filing that
the Securities and Futures Commission has "directed Hong Kong
Exchanges and Clearing to suspend all dealings" in the shares of
the coal and timber trader, under Section 8 of the securities and
futures rules.
The SFC gave no reason and a spokesman declined to comment, the
report says.
SCMP says trading of Superb's shares has been suspended since
November last year on Superb's request to the exchange pending a
clarification statement. The SFC's trading ban means trading
cannot resume even if the clarification is made, unless the whole
SFC board agrees to it, the report states.
The report relates that Superb issued a statement nearly two
months after the Muddy Waters report was issued, saying the report
contained "misleading statements and fabricated contents," adding
it would issue a statement to refute the allegations "in due
course." It never did.
"Section 8 has been used only in exceptional circumstances where
there is a very clear-cut and serious case for investigation,"
SCMP quotes Martin Rogers, a partner at international law firm
Davis Polk, as saying. "This is an example of the SFC's
continuing of a trend under the leadership of Mark Steward of
using innovative and strong regulatory measures when required to
send warning messages against perceived, egregious market
misbehaviour."
Superb reported revenue of HK$773.3 million in 2013, but "its real
revenue was likely close to zero", Muddy Waters alleged, according
to SCMP.
SCMP relates that Muddy Waters claimed that almost all of the
revenues Superb Summit reported in 2013 and 2012 were likely
attributed to its purported subsidiary, Tianjin Libao Coal
Trading, which it allegedly never owned.
According to the report, Timothy Loh -- tloh@timothyloh.com --
principal of Timothy Loh Solicitors, said the legislation provides
very broad powers to the SFC which can impose a suspension if it
merely "appears" to them that one of the conditions is satisfied.
YUNG KEE: Set to Close as Last Ditch Effort Fails
-------------------------------------------------
Channel NewsAsia reports that the fate of Hong Kong's iconic roast
goose restaurant Yung Kee was sealed a few minutes past 7:00 p.m.
at Hong Kong's court of Final Appeal on Dec. 16.
CNA says Ronald Kam, one of the sons of the restaurant's founder,
made a last ditch effort to Chief Justice Geoffrey Ma to rescind
the winding up order for the restaurant. However, this was
rejected by Chief Justice Ma, citing a lack of jurisdiction and
the late stage of the case.
The report relates that following founder Kam Shui Fai's death in
2004, the restaurant was left in the hands of Kinsen and Ronald,
his two sons. But Kinsen soon complained to the court that he was
blocked from running the business despite holding 45 per cent of
the shares, with Ronald holding 55 per cent.
Days before the court ruling, however, he died, leading his family
to accuse his younger brother Ronald of being behind his death,
CNA relates. The incident has since caused the contentious dispute
to erupt in bitterness.
According to the report, the late Kinsen's family, who applied for
the court liquidation order, demanded HK$1.3 billion or US$168
million, for their 45 per cent stake. But Ronald, who currently
runs Yung Kee, was only willing to pay HK$1.1 billion in cash and
almost HK$100 million worth of assets.
In November, the Court of Final Appeal ordered its holding company
Yung Kee Holdings Ltd to liquidate if no decision has been reached
by Dec 9, the report notes.
CNA relates that Yvonne Kam, daughter of Ronald Kam, said her
family did whatever they could to save "grandpa's restaurant", and
she was deeply saddened by the outcome.
A liquidator will take over the holding company to find buyers for
its assets, including the restaurant and the building it occupies
in Hong Kong's Central district, the report says.
Yet this does not mean that that Yung Kee will shut its doors
immediately, says CNA. Lawyers said the liquidation process will
likely take months if not years, and as a subsidiary of the
holding company, the restaurant can keep running in the meantime,
the report states.
=========
I N D I A
=========
70 REALTY: ICRA Suspends 'D' Rating on INR10cr LT Loan
------------------------------------------------------
ICRA has suspended the [ICRA]D rating, assigned to the INR10.00
crore of fund based facility of 70 Realty. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund
based limit 10.00 [ICRA]D suspended
Established as a partnership firm in August 2011, M/s 70 Realty
commenced the development of its first project viz. 'Manidhari
Luxuria' in March 2013. The project is a high-end residential
project housing 76 nos. 3 BHK and 4 BHK flats with a saleable area
in the range of 1561 sq.ft to 2882 sq.ft. The project is located
in the Pal-Adajan area of Surat. The project completion is
scheduled for December 2015.
ACME COTSYN: ICRA Suspends B+ Rating on INR10.10cr Loan
-------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR0.90 crore fund based cash credit facility and INR10.10
crore proposed facility of Acme Cotsyn Private Limited. The
suspension follows ICRAs inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 0.90 [ICRA]B+ suspended
Proposed Limits 10.10 [ICRA]B+ suspended
Incorporated in January 2005, Acme Cotsyn Private Limited in
engaged in manufacturing grey fabric from cotton yarn on job work
basis. The company is promoted by Acme Group which consists of
various business units present in textile sector and others like
Acme International Ltd, Acme Yarns Private Ltd, M/s Jitendrakumar
Lalbhai, M/s Nilesh Lalbhai, M/s Anmol Fabrics, M/s Ace Cotsyn and
Acme Housewares (I) Private Ltd. The consolidated manufacturing
capacity of ACPL is around 4.50 lakh meter per month.
ANANT RICE: ICRA Reaffirms B+ Rating to INR3.50cr Loan
------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to
the INR3.50 crore cash credit (enhanced from INR2.50 crore
earlier)and INR0.76 crore term loan (enhanced from INR0.60 crore
earlier) facilities of Anant Rice Industries. ICRA has also
reaffirmed the short term rating of [ICRA]A4 assigned to the
INR2.50 crore non-fund based bank facility of ARI. ICRA has also
assigned a long term rating of [ICRA]B+ to an untied limit of
INR2.24 crore of ARI. Further, ICRA has withdrawn the long term
rating of [ICRA]B+ assigned to the letter of credit facility of
ARI.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
(Cash Credit) 3.50 [ICRA]B+ reaffirmed/assigned
Fund Based Limits
(Term Loan) 0.76 [ICRA]B+ reaffirmed/assigned
Non-Fund Based Limits
(Letter of Credit) 0.40 [ICRA]B+ withdrawn
Non-Fund Based Limits
(Bank Guarantee) 2.50 [ICRA]A4 reaffirmed
Untied Limit 2.24 [ICRA]B+ assigned
The reaffirmation of the ratings takes into consideration ARI's
small scale of current operations; notwithstanding, consistent
revenue growth witnessed over the past few years and weak
financial profile characterized by low profitability, leveraged
capital structure and weak coverage indicators. Further, the low
entry barrier and intense competition in a highly fragmented rice
milling industry, restricts pricing flexibility. ICRA also notes
that the fortunes of the industry is dependent on the procurement
policy of Food Corporation of India (FCI), which affects the
quantum of rice available for open market sales as well as the
minimum support price (MSP) policy, which affects the procurement
price of paddy. Moreover, seasonal nature of the crop as well as
level of harvest, which is highly dependent on agro climatic
conditions, impacts the availability and price movement of paddy.
The ratings further take into account ARI's exposure to risks
associated with its status as a partnership firm, including the
risks of withdrawal of capital by the partners. The ratings,
however, derive comfort from the experience of the partners in the
rice milling industry and ARI's presence in a major paddy growing
area, resulting in easy availability as well as low landed cost of
input materials (paddy).
Founded in 1987 as a partnership firm, ARI is engaged in milling
of paddy to produce non-basmati raw and parboiled rice with an
installed capacity of 19,200 tonnes per annum (TPA). Besides, the
firm has two sortex machines to produce silky sortex rice with an
installed capacity of 4 tonnes per hour (TPH). The milling unit of
the firm is located in Arang, Chhattisgarh.
Recent Results
For the year ended on 31st March 2015, the firm has reported an
operating income of INR21.29 crore with a profit after tax (PAT)
of INR0.31 crore, as compared to an operating income of INR17.02
crore with a PAT of INR0.19 crore during 2013-14.
ASPI CARS: ICRA Withdraws B+ Rating on INR13cr Loan
---------------------------------------------------
ICRA has withdrawn the ratings of [ICRA]B+ assigned to the
INR13.00 crore bank limits of Aspi Cars Private Limited, which
were under notice of withdrawal.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Electronic Dealer
Financing Scheme 13.00 [ICRA]B+ (withdrawn)
Cash Credit 5.00 [ICRA]B+ (withdrawn)
The ratings are withdrawn as the period of notice of withdrawal is
completed.
BALAJI STAKE: CRISIL Suspends 'D' Rating on INR85MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
Balaji Stake Rice Industries (BSRI; part of the Balaji group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 85 CRISIL D
The suspension of ratings is on account of non-cooperation by BSRI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BSRI is yet to
provide adequate information to enable CRISIL to assess BSRI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of BSRI and Balaji Stake Rice Industries
Limited (BSRIL, rated 'CRISIL D'). This is because these entities,
together referred to as the Balaji group, are in the same line of
business, have common promoters, and have operational linkages and
fungible cash flows.
BSRIL was incorporated in 2000 by Mr. M.Sampath Rao and his family
members. The company mills and processes paddy into rice; the
company also generates by-products, such as broken rice, bran, and
husk.
BSRI, a partnership firm, also mills and processes paddy into
rice. The rice milling units of both these entities are located in
Warangal district in Telangana.
BOMMIDALA PURNAIAH: CRISIL Cuts Rating on INR237.7MM Loan to B-
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Bommidala Purnaiah Holdings Private Limited (BPHL) to 'CRISIL B-
/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Open Cash Credit 237.7 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Proposed Cash 60.0 CRISIL B-/Stable (Downgraded
Credit Limit from 'CRISIL B/Stable')
The rating downgrade reflects weakening in BPHL's liquidity, with
cash losses and stretch in working capital cycle resulting in full
utilization of bank limit. On occasion, the bank limit has also
been overdrawn, but regularized within a week. The company will
need a substantial increase in cash accrual, or a sustained
improvement in working capital cycle to alleviate the liquidity
pressure.
The cash loss of INR18 million in 2014-15 (refers to financial
year, April 1 to March 31) on revenue of INR465 million - was on
account of intensified competitive pressure and increase in
overhead costs. There has also been a stretch in working capital
cycle, with an increase in receivables, and near full utilization
of bank limit over the six months through November 2015.
The rating continues to reflect BPHL's stretched liquidity,
because of cash losses and sizeable working capital requirement,
resulting in full utilization of bank limit. Moreover, the
financial risk profile remains constrained by modest networth,
high gearing, and weak debt protection metrics. The rating also
factors in the company's susceptibility to volatility in tobacco
prices and foreign exchange rates, and exposure to intense
competitive and regulatory risks in the tobacco industry. These
rating weaknesses are partially offset by benefits BPHL derives
from the promoters' extensive experience in the tobacco industry.
Outlook: Stable
CRISIL believes BPHL will continue to benefit over the medium term
from the promoters' extensive industry experience. The outlook may
be revised to 'Positive' if the company reports cash profits, or a
sustained improvement in working capital cycle. Conversely, the
outlook may be revised to 'Negative' if a steep decline in
profitability margin, any large debt-funded capital expenditure,
or stretch in working capital cycle weakens its key credit
metrics.
Set up in 1996, BPHL is part of the Bommidala group, which has
diversified interests in packaging, rope manufacturing, and lease
financing.
BPHL trades in tobacco. Mr. Bommidala Venkata Raja Srinivas is the
managing director of the company. It is based in Guntur, Andhra
Pradesh.
DASMESH MECHANICAL: CRISIL Ups Rating on INR130MM Loan to B-
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Dasmesh Mechanical Works (DMW) to 'CRISIL B-/Stable' from 'CRISIL
D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 35 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Term Loan 130 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects timely servicing of debt by DMW in the
recent past, supported by infusion of funds by its proprietor.
CRISIL believes the firm will continue to receive need-based
funding support from its proprietor over the medium term. However,
liquidity is expected to remain constrained over this period on
account of sizeable debt repayment obligations against tightly
matched internal accrual because its scale of operations is likely
to remain small.
The rating reflects DMW's weak financial risk profile because of
high gearing and an average net worth, and its modest scale of
operations in the fragmented agricultural implements industry.
These rating weaknesses are partially offset by the extensive
industry experience of the proprietor.
Outlook: Stable
CRISIL believes DMW will continue to benefit over the medium term
from the extensive industry experience of its proprietor. The
outlook may be revised to 'Positive' in case of significantly
higher-than-expected revenue growth with sustained margins and
efficient working capital management, leading to improvement in
the financial risk profile. Conversely, the outlook may be revised
to 'Negative' in case of a significant decline in revenue and
profitability, or weakening of liquidity due to incremental
working capital requirement, leading to deterioration in the
financial risk profile.
DMW was set up in 1972 as a proprietorship firm by Mr. Sawaranjit
Singh. The firm manufactures tractor-mounted agricultural
implements such as seed drills, rotary tillers, double-notched
coulters, and straw reapers. Its manufacturing facility is in
Amargarh (Punjab).
EXCEL TIMBERS: CRISIL Cuts Rating on INR70MM Loan to 'D'
--------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Excel
Timbers Private Limited (ETPL) to 'CRISIL D/CRISIL D' from 'CRISIL
B-/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Letter of Credit 70 CRISIL D (Downgraded from
'CRISIL A4')
The rating downgrade reflects overdrawn working capital limits for
more than 30 days by ETPL; the over utilization have been caused
by the company's weak liquidity. ETPL has weak liquidity because
of its large working capital requirements due to stretch in its
book debts and large inventory holdings. CRISIL believes that
ETPL's liquidity will remain weak over the medium term because of
its working-capital-intensive operations.
The rating reflects ETPL's stretched liquidity as a result of
increased working capital requirements, weak financial risk
profile, marked by high total outside liabilities to tangible net
worth ratio, low net worth, and modest debt protection metrics.
However, the company benefits from the extensive experience of
ETPL's promoters in the timber trading and saw mill business.
Based in Kozhikode (Kerala), ETPL primarily trades in timber logs.
FUTEC SHELTERS: ICRA Suspends B+ Rating on INR50cr Loan
-------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR50.0
crore line of credit of Futec Shelters Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
GARDENIA INDIA: ICRA Suspends B+ Rating on INR90cr Loan
-------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR90.0
crore term loans of Gardenia India Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
GREEN POLYTUBES: ICRA Assigns 'B' Rating to INR4.60cr Loan
----------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B for the INR1.80
crore term loan facilities and INR4.60 crore fund based facilities
of Green Polytubes Private Limited. ICRA has also assigned the
short term rating of [ICRA]A4 for the INR0.40 crore non fund based
facilities of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 1.80 [ICRA]B assigned
Fund based limits 4.60 [ICRA]B assigned
Non-fund based limits 0.40 [[ICRA]A4 assigned
Rating Rationale
The assigned ratings take into account GPPL's weak financial risk
profile characterized by nominal profits and cash accruals from
core business as profit after tax during FY15 was entirely
supported by non-operating income of INR0.23 crore booked by the
company. The ratings also takes into account small scale of
current operations along with the intensely competitive business
with presence of large number of organized and unorganized
players, leading to decline in the operating margin over the past
few years. The working capital intensity of operations also
remained very high, owing to high inventory holding along with
liberal credit period extended to the customers, which exerts
pressure on the company's liquidity position. ICRA also notes that
a project gearing of around 1.76 times primarily to set up a new
plant for CPVC manufacturing along with expansion of existing
facilities is likely to keep the gearing at moderately high levels
at least in the initial periods and risks associated with
stabilization of operations as per expected parameters post
commissioning of the project. The rating also takes note of the
longstanding of the promoters in the PVC pipes industry,
favourable demand prospects for PVC pipes going ahead driven
primarily by the expected growth in end user segments. The ratings
also consider SPPL's large dealer network base and an established
relation with them, which ensures regular orders for the company.
In ICRA's opinion, the ability of the company to manage its
liquidity position and to improve its profitability would remain
key rating sensitivities going forward.
Incorporated in 1998, Green Polytubes Private Limited is engaged
in the manufacturing of PVC & UPVC Pipes with present installed
capacity of 3,000 MTPA. GPPL's production facility is set-up in
Hazipur, Bihar. The company is undergoing expansion in the current
year wherein it is installing a new plant for manufacturing CPVC
pipes. Additionally, it is also carrying out expansion of present
product line of U-PVC pipes. GPPL sells its product under the
registered brand name of 'Green'.
Recent Results
The company posted a net profit of INR0.16 crore on an operating
income of INR11.85 crore during FY15; as against a net profit of
INR0.14 crore on an operating income of INR13.25 crore in FY14.
GREENCO SYSTEMS: ICRA Assigns SP 3D Grading
-------------------------------------------
ICRA has assigned SP 3D grading to Greenco Systems Private Limited
indicating the 'Moderate Performance Capability' and 'Weak
Financial Strength' of the channel partner to undertake solar
projects. The grading is valid for a period of two years from the
date of assignment of grading i.e. till November 29, 2017 after
which it will be kept under surveillance.
Grading Drivers
Strengths
* Established relationship with the component suppliers, which
are among the leading suppliers in India
* Positive customer feedback on the quality of products supplied
and after sales services being provided by the company
* Demonstrated ability of the promoters to support operations
through extension of interest free unsecured loans
Risk Factors
* Limited experience of the promoters in the field of solar
Projects
* Small scale of current operations resulting in low turnover,
nominal profits and cash flows from business
* Lack of geographical diversification, with entire revenue
being derived from the state of Odisha
* Limited number of manpower with adequate technical
qualification resulting in dependence on contractual manpower
for site support; ramping up of technical team would remain
critical to business growth
Fact Sheet
Year of Establishment: 2013
Office Address
Flat No-2B, Wing No-1, Block 4
BMC Bhawani Enclave, Sahid Nagar
Bhubaneswar - 751 007,Odisha
Managing Director
Mr. Santosh Kumar Patra
Established in 2013, Greenco Systems Private Limited (GSPL) is
promoted by Mr. Santosh Kumar Patra and is involved in the
execution of turnkey projects for setting up solar power plant and
solar water pumping systems for private and government agencies in
Odisha. The company also executes projects of solar street
lighting, solar lanterns and solar home lighting systems for its
customers. The company procures solar modules and other related
equipments/accessories from the suppliers, while integrating and
installing them at the user end. Presently, the company operates
entirely in the state of Odisha. Till October 2015, the company
has successfully executed installation of around 0.51 MW of solar
capacity.
HIMALAYA POLYURETHANE: CRISIL Suspends B+ Rating on INR47MM Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Himalaya Polyurethane Private Limited (Himalaya).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 25 CRISIL B+/Stable
Letter of Credit 32.5 CRISIL A4
Term Loan 47 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
Himalaya with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, Himalaya
is yet to provide adequate information to enable CRISIL to assess
Himalaya'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'.
Himalaya, incorporated in 1992 as Styrofoam Insulation and
Packaging (India) Pvt Ltd, was acquired by the Jadhwani family in
2007; the company got its current name in 2011. Himalaya
manufactures foam. It has two manufacturing units; one each at
Thane (Maharashtra) and Valsad (Gujarat).
IMAGE HEALTH: CRISIL Suspends 'D' Rating on INR200MM Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Image
Health Care Limited (Image).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL D
Cash Credit 200 CRISIL D
Long Term Loan 104.5 CRISIL D
Standby Line of
Credit 25 CRISIL D
The suspension of ratings is on account of non-cooperation by
Image with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Image is yet to
provide adequate information to enable CRISIL to assess Image'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'.
Image was set up in 1998 by Mr. C V Rao and his family members.
The company offers tertiary healthcare services through its two
multispecialty hospitals in Hyderabad.
INFRASTRUCTURE LOGISTIC: CRISIL Ups Rating on INR89.5M Loan to B+
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Infrastructure Logistic Systems Limited (ILSL) to 'CRISIL
B+/Stable' from 'CRISIL B-/Stable'
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 89.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
Term Loan 83 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects improvement in ILSL's financial risk
profile, driven by equity infusion from M/s Stolt-Nielsen Pte
Limited resulting in improvement in financial risk profile leading
to reduced gearing, improved net worth and debt protection
metrics.There has been an infusion of INR224 million by M/s. Stolt
Nielson Pte. Ltd., Singapore in the form of equity in 2015-16.This
has resulted in significant improvement in the financial risk
profile with improvement in gearing of the company estimated to be
in the range of 0.1 to 0.2 times for March 31 2016. Further this
funds this infused will be partly used to repay its term debt and
to fund its capital expenditure plans. CRISIL expects the debt
protection metrics to improve over the medium term with expected
improvement in revenue and profitability.
The ratings reflect ILSL's modest scale of operations and the
customer concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of
ILSL's promoters in the logistics industry.
Outlook: Stable
CRISIL believes that ILSL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant and
sustained improvement in the company's revenue and profitability,
and capital structure. Conversely, the outlook may be revised to
'Negative' in case of low revenue or profitability or lengthening
of working capital cycle or large debt-funded capital expenditure,
resulting in weakening of the company's financial risk profile.
ILSL, incorporated in 2001, is a third-party rail logistics
provider for liquid cargo movement and storage. ILSL owns liquid
tank containers and liquid storage terminals. The company's
storage tanks are at Butibori in Nagpur (Maharashtra). The company
commenced commercial operations in February 2013.
KAMDHENU COMMERCIAL: CRISIL Suspends 'D' Rating on INR350MM Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Kamdhenu Commercial India Private Limited (Kamdhenu).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 300 CRISIL D
Letter of Credit 350 CRISIL D
Proposed Letter
of Credit 50 CRISIL D
The suspension of ratings is on account of non-cooperation by
Kamdhenu with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, Kamdhenu
is yet to provide adequate information to enable CRISIL to assess
Kamdhenu'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'
Kamdhenu was established in 2010 by Mr. Naresh Kumar Agarwal and
his family members. The company trades in edible oils.
KANS WEDDING: CRISIL Assigns 'B' Rating to INR45MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Kans Wedding Centre (KWC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 18.7 CRISIL B/Stable
Cash Credit 45 CRISIL B/Stable
Long Term Loan 16.3 CRISIL B/Stable
The rating reflects the firm's below-average financial risk
profile, marked by small net worth, moderate total outside
liabilities to tangible net worth ratio, and weak debt protection
indicators. The rating also factors in the firm's exposure to
intense competition and geographic concentration. These weaknesses
are partially offset by the extensive experience of KWC's
promoters in the apparel retail industry.
Outlook: Stable
CRISIL believes KWC will continue to benefit over the medium term
from the long-standing experience of its promoters in the apparel
retail industry. The outlook may be revised to 'Positive' if a
significant increase in scale of operations and efficient working
capital management lead to substantially stronger cash accrual.
Conversely, the outlook may be revised to 'Negative' if a stretch
in working capital management, or any large debt-funded capital
expenditure weakens the financial risk profile, particularly
liquidity.
KWC, incorporated in 2009, is Kerala's largest wedding apparel
retail firm, offering over 10,000 branded products. The firm is
promoted Mr. K A Niyas and his family, who have been in this line
of business for over two decades. KWC has 3 operational retail
stores in Kerala.
KESHAVA REDDY: CRISIL Suspends 'D' Rating on INR35MM LT Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Keshava
Reddy Educational Trust (KRET).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 35 CRISIL D
The suspension of ratings is on account of non-cooperation by KRET
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KRET is yet to
provide adequate information to enable CRISIL to assess KRET'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'
KRET is a charitable trust set up by Mr. N Keshava Reddy and his
family members, and is a part of the Keshava Reddy group of
educational institutions. The trust runs three schools in
Anantapur district in Andhra Pradesh, which offers education from
the first to the tenth standard. The schools are affiliated to
Andhra Pradesh State Board.
KOLLI RAMAIAH: CRISIL Suspends 'D' Rating on INR60MM LT Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Kolli
Ramaiah Educational Society (KRES).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 60 CRISIL D
Overdraft Facility 5 CRISIL D
The suspension of ratings is on account of non-cooperation by KRES
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KRES is yet to
provide adequate information to enable CRISIL to assess KRES'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'
KRES runs one institution Sree Vahini Institute of Science &
Technology - which offers courses in engineering and management.
The institute started in 2008, and is based in Tiruvuru in Krishna
district in Andhra Pradesh.
KOMARLA HATCHERIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Komarla
Hatcheries (KH) a Long-Term Issuer Rating of 'IND B+'. The Outlook
is Stable.
KEY RATING DRIVERS
The ratings reflect KH's negative EBITDA of INR15m in FY15 (FY14:
INR80m). The firm is exposed to sharply fluctuating realisations
due to a wide supply-demand disparity in the poultry industry and
high production costs. Also, its scale of operations is small with
top line of INR735m in FY15 (FY14: INR791m). Ind-Ra expects the
revenue to remain muted but EBITDA to grow substantially year-on-
year in FY16, due to better realisations since 2QFY16, leading to
interest coverage exceeding 1.5x (FY15: negative 0.6x).
The firm's liquidity profile is comfortable with 91% average
maximum working capital utilisation over the 12 months ended
October 2015.
The ratings are supported by the firm's established track record
of over 40 years and over 50 years of experience of its promoters
in the poultry industry.
RATING SENSITIVITIES
Positive: Substantial revenue growth while generating positive
EBITDA margins leading to a sustained improvement in the credit
metrics could be positive for the ratings.
Negative: Further deterioration in the revenue along with negative
EBITDA margins could be negative for the ratings.
COMPANY PROFILE
KH is a Bangalore-based partnership firm involved in poultry
business in Karnataka, Tamil Nadu and Kerala.
LEITWIND SHRIRAM: Ind-Ra Affirms 'IND D' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Leitwind Shriram
Manufacturing Limited's (LSML) Long-Term Issuer Rating at 'IND D'.
KEY RATING DRIVERS
The affirmation reflects the delays in interest payments on funded
interest term loan and cash credit facilities since October 2015
after the moratorium on interest payments provided under the
company's corporate debt restructuring (CDR) package expired. The
company's CDR package was approved in September 2014 under which
they received moratorium on interest payments till September 2015.
The delays are due to the continued EBITDA losses suffered by the
company. In FY15, the company reported revenue of INR2,455.3m
(nine months ended March 2014: INR1,059.9m) and operating EBITDA
loss of INR542.2m (INR619.7m). According to the provisional
results for 1QFY16, revenue was INR657m and operating EBITDA loss
was INR33.6m.
RATING SENSITIVITIES
Timely debt servicing for three consecutive months will be
positive for the ratings.
COMPANY PROFILE
LSML is a JV between Chennai-based Shriram Industrial Holdings
Limited and Italy-based WindFin BV to manufacture wind turbine
generators.
LSML's ratings:
-- Long-Term Issuer Rating: affirmed at 'IND D'
-- INR1,900m fund-based working capital facilities (reduced from
INR2,860m): affirmed at Long-term/Short-term 'IND D'
-- INR1,620.1m non-fund-based working capital facilities
(reduced from INR2,202.5m): affirmed at Long-term/Short-term
'IND D'
-- INR1,639.2m term loans (increased from INR176m): affirmed at
Long-term 'IND D'
M V AGRO: ICRA Assigns B+ Rating to INR11.50cr Term Loan
--------------------------------------------------------
ICRA has assigned long-term rating of [ICRA]B+ to the fund based
facilities and short term rating of [ICRA]A4 to the non fund based
facilities of M V Agro Renewable Energy Private Limited
aggregating to INR16.00 crore.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term
Loan 11.50 [ICRA]B+ assigned
Fund Based-Cash
Credit 4.00 [ICRA]B+ assigned
Non Fund Based
Bank Guarantee 0.50 [ICRA]A4 assigned
The rating derives comfort from the substantial experience of the
promoters in diverse industry segments and setting of new
businesses. The rating also draws comfort from favorable demand
prospects for biomass pellets in US and Europe due to its
favorable characteristics. The rating also benefits from the
proximity of the business to large biomass (Juli Flora, Subabul,
and Eucalyptus) producing areas which are the primary raw
materials for making wood pellets. The rating also favourably
factors in the incentives provided by the State and Central
Government for encouragement of renewable energy products.
The rating however remains constrained by preliminary stage of
project indicating high execution risk. Significant debt-funded
capital expenditure plan incurred towards manufacturing facility,
leading to leveraged capital structure and moderate debt
protection metrics of the company. The rating also factors in the
possible delays in getting licenses and approvals from regulatory
authorities. The rating also incorporates the infancy stages of
wood pellets market in India, being a new product. The prospective
clients need to be educated and convinced about the utility;
efficiency and cost effectiveness of wood pellets as a fuel viz-a-
viz other conventional fuels.
Going forward, company ability to commence the operations of the
plant as per plan and run the operations profitably keeping in
check the margins, working capital intensity and capitalization
and coverage indicators remain key rating sensitivities from
credit perspective.
M V Agro is a closely held unlisted private corporate promoted and
controlled by Sri. K. Kiran Kumar and his family. Line of activity
is manufacture of biomass fuel pellet in Gundla Samudram Village
of Prakasham District, Andhra Pradesh.
Biomass, the required raw material would be sourced from abundant
agro residues, waste biomass from wild plants such as Juli Flora
and naturally grown Subabul and Eucalyptus plants grown
extensively in the surrounding areas. Biomass fuel pellet is an
evergreen renewable energy source of heating medium having
commercial applications in a wide range of industrial and service
sectors. Installed capacity envisaged under the plant when fully
commissioned is 1,000 TPD. However under the present Phase-1 of
the project, installed capacity is proposed at 150 TPD which shall
be progressively augmented in phases.
MANN RESIDENCY: CRISIL Assigns 'D' Rating to INR190MM Term Loan
---------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the long-term
bank facility of Mann Residency Private Limited (MRPL) and has
assigned its 'CRISIL D' rating to the facility. The rating was
'Suspended' by CRISIL by the Rating Rationale dated April 9, 2015,
since MRPL had not provided the necessary information required
for a rating review. The company has now shared the requisite
information, enabling CRISIL to assign rating to the bank
facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 190 CRISIL D (Assigned; Suspension
Revoked)
The rating assigned reflect instances of delay by MRPL in
servicing its term debt obligations because of weak liquidity due
to low occupancy level at its hotel. The rating also factors in
MRPL's small scale of operations in hospitality industry and
limited track record of managing a hotel. However, it benefits
from its favourable location.
MRPL, incorporated in 2007 by Mr. Joginder Singh Mann and his
family members, operates a four-star hotel i.e. 'Hotel Clarens' in
Gurgaon, Haryana. The hotel became operational in October 2011.
MEDICO REMEDIES: ICRA Suspends B+ Rating on INR6.50cr Loan
----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR6.50 crore
fund based facilities and [ICRA]A4 rating assigned to the INR4.00
crore, short term non-fund based facilities of Medico Remedies
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
Medico Remedies Private Limited, a family owned organisation, was
incorporated in 1994, when the company took over the formulations
unit of Syncom Formulations India Private and in 2000 transferred
the registration of the company in the name of the promoters. The
company is primarily engaged in the manufacturing of
pharmaceutical formulations for generics, which is supplied in the
domestic market as well as international market, comprising mainly
of the semi-regulated markets. The company manufactures tablets,
capsules and dry syrups from its WHO GMP certified plant located
in Palghar, Thane.
NAYEK AGRIPRODUCTS: ICRA Suspends D Rating on INR9.21cr Loan
------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]D assigned to the
INR9.21 crore term loan, INR0.21 crore working capital facility,
INR0.45 crore unallocated bank limits and the short term rating of
[ICRA]D assigned to the INR0.13 crore, non-fund based bank
facilities of Nayek Agriproducts Pvt. Ltd. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
NEEDS SRI: CRISIL Suspends 'D' Rating on INR260MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Needs Sri Sai Traders Private Limited (NSSTPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL D
Cash Credit 260 CRISIL D
Letter of Credit 30 CRISIL D
The suspension of ratings is on account of non-cooperation by
NSSTPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NSSTPL is yet to
provide adequate information to enable CRISIL to assess NSSTPL'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'.
NSSTPL, set up in April 2011 by Mr Oora Sampath Rao and his
family, is a distributor of consumer durables and fast-moving
consumer goods for companies such as Samsung India, Sony India,
Daenyx India, Parle Agro Pvt Ltd, and Nestle India Ltd. NSSTPL
also trades in edible oils. The company is based in Hyderabad
(Telangana).
OMKAR INFRACON: CRISIL Cuts Rating on INR39.3MM Term Loan to B
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Omkar Infracon Private Limited (OIPL) to 'CRISIL B/Stable' from
'CRISIL B+/Stable', and reaffirmed its rating on the short-term
bank facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 18 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Letter of Credit 4 CRISIL A4 (Reaffirmed)
Term Loan 39.3 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Non Fund 21.7 CRISIL A4 (Reaffirmed)
based limits
The downgrade reflects deterioration in financial risk profile and
liquidity because of stretch in receivables to 88 days as on March
31, 2015, from 54 days as on March 31, 2014, leading to high bank
limit utilisation. Increase in debt resulted in weakening of
capital structure, gearing and debt protection metrics. Its
gearing deteriorated to 1.43 times in 2014-15 from 1.12 times in
2013-14 and interest coverage ratio declined to 0.6 time in 2014-
15 (refers to financial year, April 1 to March 31) from 2.2 times
in 2013-14. Improvement in working capital cycle, leading to
decline in debt and easing of pressure on liquidity, will remain a
key sensitivity factor.
The ratings reflect OIPL's small scale of operations and exposure
to customer concentration risk. These weaknesses are partially
offset by benefits derived from increasing demand for fly ash
bricks, mainly in the vicinity of thermal power plants, following
the central government's directive for using fly ash-based
products in a 100-kilometre radius of coal or lignite-based power
plants.
Outlook: Stable
CRISIL believes OIPL will benefit over the medium term from
increasing demand for fly ash bricks. The outlook may be revised
to 'Positive' in case of substantial ramp-up in sales and healthy
cash accrual. Conversely, the outlook may be revised to 'Negative'
if working capital requirement increases, or cash accrual is low,
or if the company undertakes any debt-funded capital expenditure
programme, constraining its financial risk profile and liquidity.
OIPL, incorporated in 2010, has a fly ash brick plant near
Kolaghat thermal power plant in West Bengal. It commenced
commercial operations in August 2012, and has capacity to produce
150,000 bricks per day.
PAGODA STEELS: CRISIL Cuts Rating on INR120MM Cash Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Pagoda Steels Private Limited (PSPL) to 'CRISIL D' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 5.9 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 24.1 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by PSPL in
servicing its term loan, the delays have been caused by weak
liquidity position. Weak liquidity is on account of stretched
receivables.
The rating reflects PSPL's weak financial risk profile, marked by
a modest net worth, high gearing, and average debt protection
metrics. The company also has a modest scale of operations in the
highly competitive TMT bar manufacturing industry. These rating
weaknesses are partially offset by the extensive industry
experience of PSPL's promoters.
PSPL was established in 2005; in 2012, the Bhavnagar (Gujarat)-
based Patel family took over the company's operations. PSPL is
currently being managed by Mr. Jignesh R Patel. The company
manufactures TMT bars under its brand, Pagoda, at its facility in
Bhavnagar.
PARAKH OILS: ICRA Withdraws B+ Rating on INR2.0cr Term Loan
-----------------------------------------------------------
ICRA has withdrawn the [ICRA]B+ rating assigned to the INR2.0
crore term loan facilities and [ICRA]A4 rating assigned to the
INR10.0 crore short term facilities of Parakh Oils Limited (POL).
There is no amount outstanding against the rated instrument.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Term Loan 2.00 [ICRA]B+ Rating Withdrawn
Short Term-Non Fund
Based 10.00 [ICRA]A4 Rating Withdrawn
POL is a Pune based company, part of Parakh Agro group, mainly
engaged in the manufacturing of agro based products like Pulses
and selling them in domestic market. The company markets the
products under brand name 'Samrat', 'Sudarshan' and 'Anand'. The
company was historically operating as an oil extraction unit;
however the promoters had decided to close the division and
starting from 2008 it is engaged in the current line of business.
Total capacity of the dal mill is 100 MTPD.
R. L. INDUSTRIES: CRISIL Assigns 'B' Rating to INR60MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of R. L. Industries (RLI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 40 CRISIL B/Stable
The rating reflects RLI's small scale of operations in the highly
fragmented rice industry, and weak financial risk profile because
of small networth, high gearing, and subdued debt protection
metrics. These weaknesses are partially offset by partners'
extensive industry experience and funding support.
Outlook: Stable
CRISIL believes RLI will benefit over the medium term from its
partners' extensive industry experience and funding support. The
outlook may be revised to 'Positive' in case of significant
increase in revenue and cash accrual, leading to improvement in
business and financial risk profiles. Conversely, the outlook may
be revised to 'Negative' in case of lower-than-expected cash
accrual or larger-than-expected working capital requirement, or
any unanticipated large debt-funded capital expenditure, exerting
pressure on liquidity.
RLI was established in 2000 as a partnership firm by brothers Mr.
Ayodhya Parkash, Mr. Varun Kumar, and Mr. Nitin Kumar. The firm
mills and sorts rice, and has milling and sorting capacity of 2
tonne per hour. Its facilities are in Jalalabad, Punjab.
RADHE HURKAT: CRISIL Reaffirms 'B' Rating on INR50MM Cash Loan
--------------------------------------------------------------
CRISIL rating on the bank facilities of Radhe Hurkat Ispat Private
Limited (RHIPL) continue to reflect RHIPL's weak financial risk
profile, marked by a small net worth, high gearing, and weak debt
protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL B/Stable (Reaffirmed)
The rating also factors in the company's small scale and working-
capital-intensive operations, and the susceptibility of its
margins to volatility in raw material prices. These weaknesses are
partially offset by the extensive experience of RHIPL's promoters
in the agricultural tools industry and the funding support that it
receives from them.
Outlook: Stable
CRISIL believes that RHIPL's financial risk profile will remain
constrained over the medium term because of low cash accruals. The
outlook may be revised to 'Positive' if the company significantly
improves its scale of operations and profitability, resulting in
better-than-expected cash accruals. Conversely, the outlook may be
revised to 'Negative' if RHIPL's financial risk profile,
particularly its liquidity, weakens, most likely due to lower-
than-expected cash accruals or substantial debt-funded working
capital requirements or capital expenditure.
Update
RHIPL has registered operating income of INR138 million in 2014-
15, showing a decline from INR154 million registered in 2013-14.
The company is expected to maintain its scale of operating during
2015-16. However the operating margins of the company has improved
to about 9.6 percent during 2014-15 as against about 7.8 percent
in the preceding year on account of higher proportion of
structural steel business which attracts higher margins.
The operations of the company are working capital intensive as
reflected in the Gross Current Assets (GCA) of 186 days as on
March 31 2015 as against 183 days in the previous year. This has
been on account of high receivable cycle and inventory holding.
The company allows credit of 1-2 months to its customers this has
led to debtors of 44 days to 85 days over the past 3 years.
Further, the company maintains an average inventory of 1-2 months
leading to inventory holding of 46 to 68 days over the past 3
years ended March 31 2015. The bank line is fully utilized on
account of large working capital requirements.
The company has a weak financial risk profile as reflected in the
small net worth INR20.2 million as on March 31 2015. The gearing
of the company has been in the range of 2.35 times to 3.86 times
over the 3 years ended March 31 2015, further the company has a
weak debt protection metrics reflected in interest coverage of
1.48 times and NCATD of 0.06 times during 2014-15. Further the
company is expected to have cash accruals in the range of INR3 to
4 million over the medium term against which it is not expected to
have major debt repayment obligations.
RHIPL was incorporated in 1993, promoted by Mr. Brijesh Hurkat and
Mr. Shailendra Hurkat in Raipur (Chhattisgarh). The company
manufactures mattocks, pickaxes, crowbars, and mild steel flats.
Its manufacturing facility is in Raipur.
RAMKY PHARMA: ICRA Suspends B- Rating on INR15cr Loan
-----------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B- rating
outstanding on the INR15.00 crore fund bank facilities of Ramky
Pharma City India Limited. The suspension follows ICRA's inability
to carry out a rating surveillance in the absence of the requisite
information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
SARDAR INDUSTRIES: CRISIL Reaffirms 'B+' Rating on INR80MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of
Sardar Industries (SI) continues to reflect the firm's modest
scale of operations in the highly competitive cotton industry,
large working capital requirements, and expected below-average
financial risk profile because of high gearing and weak debt
protection metrics. These weaknesses are partially offset by the
partners' extensive experience in the cotton industry and the
benefits from the proximity of the ginning unit to the cotton-
growing belt in Gujarat.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Term Loan 17.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes SI will continue to benefit over the medium term
from the partners' extensive industry experience. The outlook may
be revised to 'Positive' if the firm reports higher-than expected
revenue and/or its profitability leading to improvement in its
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if its financial risk profile further deteriorates due
to a large, debt-funded capital expenditure and/or stretch in its
working capital requirements.
Update:
For the year 2014-15 (refer financial year, April 1 to March 31),
SI has registered sales of around INR683 million, declining by
around 11 per cent year-on-year due to sluggish demand and
moderation in cotton prices during the year. Over the medium term,
sales are expected to be grow at a modest pace. In 2014-15 the
firm's operating profitability remained low at 1.14 per cent and
is expected to be at around 1 to 2 per cent over the medium term
because of low value addition and the fragmented nature of
industry. In 2014-15, the working capital requirements were
moderately high with gross current assets (GCA) of 55 days, marked
by higher book debt of 44 days and moderate inventory holding of
10 days. Over the medium term, the GCA days are expected to be in
the range of 50 to 60 days and the working capital requirements to
rise with its scale of operations. As on March 31, 2015, gearing
was high at 3.69 times due to higher working capital debt and
modest net worth. Over the medium term, the gearing is expected to
be in range of 2.5 to 3.0 times on account of high reliance on
bank limits to fund incremental working capital requirements. Over
the medium term, its debt protection metrics are expected to
remain weak with its interest coverage in the range of 1.90 to
2.10 times and NCATD ratio in the range of 0.02 to 0.04 times due
to modest profitability vs. its debt levels. The firm's liquidity
continues to be stretched due to its high working capital
requirements and limited financial flexibility, however it is
supported by a comfortable cushion between net cash accruals and
term debt repayment obligations and funding support from the
partners.
Set up in 2010, SI is a partnership promoted by the Patel family,
based in Kadi (Gujarat). The firm undertakes cotton ginning and
pressing at its production facility in Kadi.
For 2014-15, SI reported profit after tax (PAT) of INR1.90 million
on sales of INR683 million against profit after tax of INR1.80
million on sales of INR774 million for 2013-14.
SMC POWER: ICRA Suspends 'B' Rating on INR203.64cr Loan
-------------------------------------------------------
ICRA has suspended the [ICRA]B rating outstanding for INR203.64
crore bank facilities of SMC Power Generation Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company. According to its suspension policy, ICRA may suspend any
rating outstanding if in its opinion there is insufficient
information to assess such rating during the surveillance
exercise.
SOLAS FIRE: CRISIL Reaffirms B+ Rating on INR45MM Cash Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Solas Fire Safety
Equipment Pvt Ltd (SFSEPL) continue to reflect SFSEPL's small
scale and tender-based operations, and large working capital
requirement.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL A4 (Reaffirmed)
Cash Credit 45 CRISIL B+/Stable (Reaffirmed)
These weaknesses are mitigated by an established regional market
position in the supply and installation of fire protection and
security systems. The ratings also factor in SFSEPL's healthy
relationship with key customers and suppliers, and moderate
financial risk profile because of moderate gearing and adequate
debt protection metrics, though constrained by modest net worth.
Outlook: Stable
CRISIL believes SFSEPL will benefit over the medium term from its
promoter's extensive industry experience. The outlook may be
revised to 'Positive' if higher-than-expected cash accrual or
improved working capital cycle enhances liquidity. Conversely, the
outlook may be revised to 'Negative' if the financial risk profile
weakens because of stretched working capital cycle, large, debt-
funded capital expenditure, or decline in profitability or
revenue.
Incorporated in 1999, SFSEPL supplies and installs fire hydrant
systems, automatic fire sprinklers, and access control systems,
primarily in South India. The promoter, Mr. Shenoy, manages the
company's daily operations.
SRI SANTHOSHIMA: CRISIL Reaffirms 'B' Rating on INR100MM Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sri
Santhoshima Parboiled Modern Rice Mill (SSMRM) continues to
reflect SSMRM's below-average financial risk profile, marked by
modest net worth, high gearing and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Long Term Loan 30 CRISIL B/Stable (Reaffirmed)
The rating also factors in the firm's modest scale of operations
in the intensely competitive rice milling industry, susceptibility
to changes in government regulations and volatility in raw
material prices. These ratings weaknesses are partially offset by
the extensive experience of SSMRM's promoters in the rice milling
industry.
Outlook: Stable
CRISIL believes SSMRM will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if revenue and profitability
increase substantially, or if sizeable equity infusion of equity
strengthens financial risk profile. Conversely, the outlook may be
revised to 'Negative' if considerable deterioration in working
capital management, any large debt-funded capital expenditure, or
sizeable withdrawal of capital weakens the financial risk profile.
Incorporated in 2002, SSMRM mills raw and parboiled rice in
Nalgonda (Telangana). The company is promoted by Mr. Gouru Rajesh
and his family.
STRONGWIRE INDUSTRIES: ICRA Withdraws B+ Rating on INR8.30cr Loan
----------------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B+ assigned to
the INR8.30 crore fund based bank facilities and the short-term
rating of [ICRA]A4 assigned to the INR2.00 crore non fund based
bank facility of Strongwire Industries which were under Notice of
Withdrawal. The ratings are withdrawn after one month from the
date of Notice of Withdrawal, as per ICRA's policy.
Established in 1993 as a partnership firm, Strongwire Industries
(SWI) is engaged in manufacturing of Mild Steel (MS) Wire and
Copper Coated (CC) Wire which is finds application in welding
industry. The firm has its registered office at Kandivali and
production facilities in Tarapur (Maharashtra) and Bhilad
(Gujarat) with an installed capacity of 3000MTPA each. The firm is
also certified by BHEL, JAS-ANZ/ISO and DET NORSKE VERITAS AS for
its products.
SUDARSHAN BEOPAR: Ind-Ra Assigns IND BB+ Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sudarshan Beopar
Company Limited (SBCL) a Long-Term Issuer Rating of 'IND BB+'. The
Outlook is Stable. The agency has also assigned SBCL's INR110m
fund-based working capital limit an 'IND BB+' rating with a Stable
Outlook.
KEY RATING DRIVERS
The ratings reflect SBCL's moderate scale of operations and credit
profile. Revenue was INR959m in FY15 (FY14: INR657m), net
financial leverage (Ind-Ra adjusted net debt/operating EBITDA) was
2.6x (4.2x) and interest coverage was 2.3x (2.3x). Also, the
EBITDA margins are weak but stable (FY15: 2.0%; FY14: 2.0%).
Moreover, the liquidity profile is tight with almost full use of
the working capital limits during the 12 months ended October
2015.
The ratings are however supported by SBCL's promoters' experience
of over 30 years in the flour business.
RATING SENSITIVITIES
Positive: A substantial improvement in the revenue along with an
improvement in the profitability will be positive for the ratings.
Negative: Substantial deterioration in the overall credit metrics
will be negative for the ratings.
Incorporated in 2001, SBCL manufactures and sells ground wheat
products. The company is based in Kolkata, and the day-to-day
operations are managed by Mr. Ankit Jain.
SUNDIAL MINING: CRISIL Reaffirms B+ Rating on INR90MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sundial Mining
and Metals LLP (SMML) continues to reflect SMML's limited track
record, and modest scale, of operations in the highly fragmented
bauxite trading segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 30 CRISIL B+/Stable (Reaffirmed)
The rating also factors in susceptibility of revenue and margins
to any adverse impact of government regulations and to volatility
in raw material prices. These ratings weaknesses are partially
offset by benefits derived from the healthy demand for bauxite in
international markets, and the extensive experience of the
company's promoters in the mineral trading segment.
Outlook: Stable
CRISIL believes SMML will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of a significant increase in
scale of operations while working capital management and
profitability improve, resulting in a better financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
any regulatory changes disrupt the company's supplies to
international markets, or in case of lower-than-expected revenue
or profitability or large capital withdrawal, adversely impacting
liquidity.
Set up in September 2013 and based in Bengaluru, SMML trades in
and exports bauxite. It primarily exports to China. The firm's
operations are managed by its managing partner, Mr. G Ravi Kumar.
TROIX CHEMICAL: ICRA Suspends 'B' Rating on INR10cr Loan
--------------------------------------------------------
ICRA has suspended [ICRA]B rating assigned to the INR10.00 crore
fund based facilities of Troix Chemicals Pvt. Ltd. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
Troix Chemical Private Ltd. is an authorised distributor of Andhra
Petrochemicals Limited for its three main products viz. 2- Ethyl
Hexanol (2-EH), Iso-Butanol and n-Butanol, which mainly find
application in the plastics and as solvents in the paints/coatings
and pharmaceutical industries. TCPL is managed by four Directors
viz. Mr. Rajesh Punamiya, Mr. Vijaykumar Punamiya, Mr. Rohit Jain
and Mr. Vinit Jain, each holding ~25% of the shareholding in the
company. The company was established in 1996-97 by the earlier
management and was later acquired by the present management in
1999, and commenced operations in the trading of petrochemicals in
2001.
V.S. BUILDCON: ICRA Suspends B+ Rating on INR10cr LT Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ assigned to
the INR10.0 crore long term fund based facilities of V.S.
Buildcon. The suspension follows ICRA's inability to carry out
rating surveillance in the absence of requisite information from
the company.
VARUN CASTINGS: ICRA Suspends B+ Rating on INR4.45cr Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ assigned to
the INR4.45 crore of long term fund based limits of Varun Castings
Pvt. Ltd. ICRA has also suspended its short term rating of
[ICRA]A4 assigned to the INR5.0 crore non fund based limits of the
company. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
VEEAAR FABWARE: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Veeaar Fabware
Private Limited (VFPL) Long-Term Issuer Rating 'IND B+'. The
Outlook is Stable. The agency has also assigned VFPL's INR150m
fund-based limits an 'IND A4' rating.
KEY RATING DRIVERS
The ratings reflect VFPL's small scale of operations and weak
credit metrics. Revenue was INR205m in FY15 (FY14: INR690m),
interest coverage was 3.2x (6.5x), net financial leverage was 7.4x
(negative 0.4x) and operating EBITDA margins were low at 0.60%
(0.4%).
The ratings are supported by VFPL's directors' over 20 years of
experience in the same line of business.
RATING SENSITIVITIES
Positive: An improvement in the scale of operations and
profitability leading to an improvement in the overall credit
metrics could result in a positive rating action.
Negative: A decline in the revenue and profitability resulting in
deterioration in the credit metrics could result in a negative
rating action.
COMPANY PROFILE
VFPL is a 100% export-oriented company, with Mr. Ramesh Singh and
Mr. Ashok Vange as directors. Incorporated in March 2012, the
company exports textiles, garments, fabrics, imitation jewellery,
footwear etc. VFPL buys from local sellers according to the order
received and exports directly to its clients.
VISHNU CARRIERS: CRISIL Suspends 'D' Rating on INR90MM Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Vishnu
Carriers Private Limited (VCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL D
Cash Credit 90 CRISIL D
Proposed Long Term
Bank Loan Facility 1 CRISIL D
Term Loan 8 CRISIL D
The suspension of ratings is on account of non-cooperation by VCPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VCPL is yet to
provide adequate information to enable CRISIL to assess VCPL'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'.
VCPL was promoted in 1989 by Mr. I Venkat Rao, Mr. G Sanyasi Raju,
Mr. I Vishnu Rao, and Mrs. I Deepa. The company is an authorized
dealer of Tata Motors Ltd for its entire range of light and medium
commercial vehicles. The company has a showroom, a workshop, and
four small marketing-cum-sales offices in Visakhapatnam (Andhra
Pradesh).
YEGNA MANOJAVAM: CRISIL Suspends 'D' Rating on INR242.6MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Yegna Manojavam Drugs and Chemicals Limited (YMDC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL D
Cash Credit 210 CRISIL D
Funded Interest
Term Loan 114.2 CRISIL D
Letter of Credit 40 CRISIL D
Long Term Loan 195.6 CRISIL D
Working Capital
Term Loan 242.6 CRISIL D
The suspension of ratings is on account of non-cooperation by YMDC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, YMDC is yet to
provide adequate information to enable CRISIL to assess YMDC'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 2003 and based out of Hyderabad, YMDC is involved
in the manufacturing of bulk drugs and intermediaries. The company
is promoted by Mr. R.L.Y.P Shastry and Mr.Y.V. Ramana.
====================
N E W Z E A L A N D
====================
INTAGR8 LTD: Placed in Liquidation
----------------------------------
Blair Ensor and Tony Wall at Stuff.co.nz reports that Intagr8 Ltd,
a controversial telecommunications company accused of misleading
sales tactics has collapsed, leaving thousands of business
customers around the country in the lurch.
Intagr8 Ltd was placed in liquidation on Dec. 17, the same day
that Vodafone announced it was severing ties with the company, the
report relates. It is understood Vodafone is owed about
NZ$1 million and will take legal action to try and recover it.
According to the report, Intagr8 offered bundled deals for phones
and equipment and the collapse means around 2,500 business
customers around New Zealand are left with finance company
contracts, but potentially no phone lines.
Stuff.co.nz, citing the Companies Office website, discloses that
Damien Grant of Waterstone Insolvency was appointed liquidator on
Dec. 17 and his first report is due next week.
Stuff.co.nz relates that Mr. Grant said he would investigate why
the business failed, but Intagr8's owner Murray Taylor had blamed
it on negative publicity.
Mr. Grant was looking to sell the business, which had a monthly
turnover of about NZ$1 million, to the highest bidder today, Dec.
18.
The report says Intagr8's staff were being kept on "in the hope we
can get a sale".
Vodafone represented about 70 per cent of Intagr8's creditors by
dollar value, the report notes.
It's understood Mr. Taylor and his family have booked flights out
of New Zealand and will leave in the coming days, says
Stuff.co.nz.
The Commerce Commission has been investigating Intagr8 for
misleading sales tactics, the report adds.
*********
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
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
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