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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, February 1, 2016, Vol. 19, No. 21
Headlines
A U S T R A L I A
1 STOP: First Creditors' Meeting Scheduled For Feb. 8
AIRCRAFT SUPPORT: Placed Into Administration
ALD CLEANING: First Creditors' Meeting Set For Feb. 10
ELLTON CONVEYORS: Seeks Expressions of Interest
LAURA ASHLEY: 7 Stores Closed as Administration Continues
TMA AUTOMOTIVE: First Creditors' Meeting Set For Feb. 8
WOODS ACCOUNTING: First Creditors' Meeting Set For Feb. 5
C H I N A
CHINA OIL: Moody's Says Profit Warning No Impact on Ba2 CFR
H O N G K O N G
NOBLE GROUP: Investors Agree to $750MM Stake Sale in Agri Venture
NORD ANGLIA: Moody's Says 1Q FY2016 Results Support 'B1' CFR
I N D I A
AKAL PIPE: ICRA Assigns 'D' Rating to INR9.40cr LT Loan
AL-SAMI FOOD: CRISIL Suspends 'D' Rating on INR56.6MM Loan
ANTONY MOTORS: ICRA Reaffirms B+ Rating on INR8.50cr LT Loan
ARTHI TEXTILES: CRISIL Reaffirms B+ Rating on INR60MM Loan
BATANAGAR EDUCATION: CRISIL Cuts Rating on INR130MM Loan to 'D'
BHAGYA DIAMOND: ICRA Suspends B+ Rating on INR6.0cr Bank Loan
BRAHMAPUTRA INFRASTRUCTURE: ICRA Rates INR478.08cr Loan at 'D'
CHOTTA SHIMLA: ICRA Suspends B+ Rating on INR15cr Term Loan
DARSHAN SAGAR: ICRA Assigns 'B+' Rating to INR15cr Loan
DAYAL LUMBERS: ICRA Suspends B+/A4 Rating on INR10cr Bank Loan
DHARAMPAL PIPE: CRISIL Assigns 'B' Rating to INR70MM Loan
DHURIA RICE: ICRA Reaffirms 'B' Rating on INR6.0cr LT Loan
DOSHI CERAMIC: ICRA Reaffirms 'B' Rating on INR4.88cr Term Loan
EFFICIENT ENGINEERS: CRISIL Suspends 'D' Rating on INR73.5MM LOC
EMAAR MGF: ICRA Lowers Rating on INR600cr Loan to 'D'
FLOCKSUR INDIA: ICRA Reaffirms B+ Rating on INR10cr Loan
GARG RICE: ICRA Reaffirms 'B' Rating on INR1.0cr LT Loan
GAYATRI ROLLING: CRISIL Reaffirms 'B' Rating on INR55MM Loan
GURUKRUPA DEVELOPERS: ICRA Reaffirms B+ Rating on INR125cr Loan
JAJODIA EXPORTS: ICRA Assigns 'B' Rating to INR7.50cr Cash Loan
JYOTI HOSPITAL: CRISIL Assigns 'B-' Rating to INR90MM Term Loan
K S R GRANITE: CRISIL Cuts Rating on INR50MM LOC to 'D'
KPR CONSTRUCTIONS: ICRA Suspends B+ Rating on INR7.0cr Bank Loan
KRISHAK VIKAS: CRISIL Assigns B+ Rating to INR10MM LT Loan
LIGHT CRAFT: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
MAHESH COTSPIN: CRISIL Reaffirms B+ Rating on INR92.8MM Loan
MATRIX CERAMIC: ICRA Reaffirms B+ Rating on INR4.50cr Loan
MELANGE SYSTEMS: ICRA Suspends B+ Rating on INR6.0cr Loan
MONICA GARMENTS: ICRA Reaffirms 'B' Rating on INR0.52cr Loan
MUDRA LIFESTYLE: Ind-Ra Withdraws D Long-Term Issuer Rating
NAGREEKA BRIJ: CRISIL Reaffirms 'B' Rating on INR78.7MM LT Loan
NILADREE BUILD-TECH: CRISIL Reaffirms B Rating on INR162MM Loan
ORACLE HOME: CRISIL Cuts Rating on INR251.6MM Loan to 'D'
PACIFIC HARISH: CRISIL Suspends 'D' Rating on INR36MM Loan
PG ASSOCIATES: CRISIL Suspends 'B' Rating on INR55MM LT Loan
PONMANI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR57.5MM Loan
POSITIVE FLEXO: CRISIL Suspends 'D' Rating on INR45MM Term Loan
R.V.R. TECHNOLOGIES: Ind-Ra Raises Long-Term Issuer Rating to B-
RADHA KRISHNA: ICRA Suspends B+ Rating on INR4cr Cash Loan
RAM DEV: ICRA Suspends 'D' Rating on INR161.87cr Loan
RRV INFRA: CRISIL Suspends 'D' Rating on INR150MM Cash Loan
SAICON TILES: CRISIL Reaffirms 'B' Rating on INR52.5MM Loan
SAMAYA STRUCTURES: ICRA Suspends 'B' Rating on INR10cr Loan
SANT VALVES: CRISIL Assigns B+ Rating to INR65MM Cash Loan
SHIMLA TOLLS: ICRA Suspends B+ Rating on INR32cr Term Loan
SHIRAJ TIMBER: CRISIL Reaffirms B- Rating on INR255MM Cash Loan
SHIV TRADERS: CRISIL Suspends 'B' Rating on INR55MM Cash Loan
SHREE KRISHNA: Ind-Ra Affirms BB+ Long-Term Issuer Rating
SHREE MAHAVIR: CRISIL Suspends 'D' Rating on INR50MM Cash Loan
SHRI SAI: CRISIL Suspends B+ Rating on INR50MM Bank Loan
SHRI SHANKER: ICRA Reaffirms 'B' Rating on INR28.91cr LT Loan
SHUKRANA IMPEX: Ind-Ra Assigns B+ Long-Term Issuer Rating
SOMOCHEM INDIA: CRISIL Assigns B+ Rating to INR35MM Loan
SOUTH EAST: Ind-Ra Lowers Rating on INR37.13BB Loans to BB-
SRI BHASKAR: Ind-Ra Affirms B+ Long-Term Issuer Rating
SRI LAXMI: ICRA Suspends B+/A4 Rating on INR9.0cr Loan
SURYODAYA EDIBLES: CRISIL Assigns B+ Rating to INR50MM Loan
SUVILAS PROPERTIES: CRISIL Reaffirms B Rating on INR350MM Loan
TBPR INFRA: ICRA Lowers Rating on INR24.50cr Loan to 'D'
UNITED ELECTRICALS: ICRA Assigns 'B' Rating to INR2.65cr Loan
VARDHAMAN COLLEGE: ICRA Lowers Rating on INR12cr Loan to B+
VIJAY TEXTILES: Ind-Ra Raises Long-Term Issuer Rating to B+
WEBUILD PRIVATE: CRISIL Assigns B- Rating to INR61.7MM Loan
WINFAB EQUIPMENTS: CRISIL Assigns 'B' Rating to INR40MM Cash Loan
J A P A N
SHARP CORP: Foxconn Founder Appeals to Tokyo Over $5.1BB Bid
TAKATA CORP: CEO Set to Step Down After Recalls
N E W Z E A L A N D
DICK SMITH: NZ Unit Gets Another Six Months to Find Buyer
GAMELOFT NEW ZEALAND: Parent Has to Repay NZ$2.9 Million Grant
X X X X X X X X
ASIA PACIFIC: Negative Rating Trend for Corporates to Worsen
- - - - -
=================
A U S T R A L I A
=================
1 STOP: First Creditors' Meeting Scheduled For Feb. 8
-----------------------------------------------------
Richard Albarran and David Ingram of Hall Chadwick Chartered
Accountants were appointed as administrators of 1 Stop Workforce
Pty Limited on Jan. 27, 2016.
A first meeting of the creditors of the Company will be held at
The Grace Hotel, The Pinaroo 4-5 Room, Level 1, 77 York Street, in
Sydney, on Feb. 8, 2016, at 10:00 a.m.
AIRCRAFT SUPPORT: Placed Into Administration
--------------------------------------------
Steve Naidenov and David Iannuzzi of Veritas Advisory were
appointed as administrators of Aircraft Support Industries Pty Ltd
on Jan. 28, 2016.
ALD CLEANING: First Creditors' Meeting Set For Feb. 10
------------------------------------------------------
Steve Naidenov and David Iannuzzi of Veritas Advisory were
appointed as administrators of ALD Cleaning Services Pty. Ltd. on
Jan. 29, 2016.
A first meeting of the creditors of the Company will be held at
Level 12, 88 Pitt Street, in Sydney, on Feb. 10, 2016, on
Feb. 10, 2016, at 11:00 a.m.
ELLTON CONVEYORS: Seeks Expressions of Interest
-----------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that expressions of
interest are sought for the sale or recapitalisation of Ellton
Conveyors Pty Limited.
Dissolve.com.au says the company is currently under administration
with Vaughan Neil Strawbridge and David John Frank Lombe of
Deloitte Touche Tohmatsu being appointed administrators on Jan. 8,
2016.
Ellton Conveyors offers conveyor systems, construction, design and
installation services to underground and surface mines throughout
Australia. It has reportedly delivered big scale projects worth
AUD160 million to mine operators and owners, Dissolve.com.au
disclose.
LAURA ASHLEY: 7 Stores Closed as Administration Continues
---------------------------------------------------------
Eloise Keating at SmartCompany reports that seven Laura Ashley
stores in Australia have been closed as the voluntary
administration of the retail chain in Australia continues.
The Australian arm of the homewares and clothing retail entered
voluntary administration on January 7, at which time the chain has
operated 38 stores in Australia.
SmartCompany relates that administrators FTI Consulting confirmed
on Jan. 28 seven Laura Ashley outlets have now closed, with 17
employees affected.
The stores that have ceased trading are in Brisbane and Robina in
Queensland, Perth in Western Australia, and Richmond, Harbour
Town, Fountain Gate and Elizabeth Street in Melbourne, according
to SmartCompany.
The Laura Ashley store at the Raine Square shopping centre in
Perth closed on January 27, with the shopping centre and Consumer
Protection WA both tweeting an image of the store with a
handwritten note in the front window that included an apology to
customers for any inconvenience.
SmartCompany meanwhile reports that the store that previously
housed the Laura Ashley outlet on Elizabeth Street in Melbourne's
CBD is now empty, with all stock removed from the store.
SmartCompany relates that administrator Ross Blakeley said in a
statement on Jan. 28 the closures follow detailed assessments of
all the stores in the Laura Ashley network and the overall
financial position of the company.
"This decision hasn't been taken lightly . . . we're particularly
conscious of the impact this has on affected employees," the
report quotes Mr. Blakeley as saying. "However, our assessment
has shown that the seven stores that we identified for closure are
not viable. Our role as administrators requires us to examine
every option to keep the business trading as a going concern, and
to balance and maximise the outcome for all stakeholders."
According to the report, FTI Consulting said the administrators
will continue to assess the ongoing viability of the business and
discussions are continuing with a number of parties that have
expressed interest in either investing in the business through a
recapitalisation or purchasing the business's assets.
As previously reported by SmartCompany, FTI Consulting commenced a
sale campaign for the Australian operations of Laura Ashley after
receiving "strong informal interest from a large number of
interested parties".
An advertisement for the business said the Australian stores,
which are operated under a licence agreement from Laura Ashley UK,
currently generate $42 million in annual sales, SmartCompany adds.
Laura Ashley Australia sells fashion, homewares and furniture.
Laura Ashley was a Welsh fashion designer who first launched her
furnishings business in the 1950s, before expanding into clothing.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 8, 2016, SmartCompany said external directors were called in
on Jan. 7 to manage the business, with Ross Blakeley, Quentin Olde
and John Park from FTI Consulting appointed as administrators.
Laura Ashely was founded in Australia in 1971 and operates 38
stores in Australia and four in New Zealand under a licence
agreement from Laura Ashely UK.
The appointment of administrators only applies to the retailer's
Australian stores. Laura Ashley's New Zealand stores and Laura
Ashley UK are not affected by the collapse of the Australian
business, SmartCompany said.
TMA AUTOMOTIVE: First Creditors' Meeting Set For Feb. 8
-------------------------------------------------------
Richard Albarran and David Ingram of Hall Chadwick Chartered
Accountants were appointed as administrators of TMA Automotive
Services Pty Limited on Jan. 27, 2016.
A first meeting of the creditors of the Company will be held at
The Grace Hotel, The Pinaroo 4-5 Room, Level 1, 77 York Street, in
Sydney, on Feb. 8, 2016, at 9:30 a.m.
WOODS ACCOUNTING: First Creditors' Meeting Set For Feb. 5
---------------------------------------------------------
Neil Robert Cussen and Richard John Hughes of Deloitte Touche
Tohmatsu were appointed as administrators of Woods Accounting &
Tax Pty Limited on Jan. 25, 2016.
A first meeting of the creditors of the Company will be held at
Eclipse Tower, Level 19, 60 Station Street, in Parramatta, on Feb.
5, 2016, at 3:30 p.m.
=========
C H I N A
=========
CHINA OIL: Moody's Says Profit Warning No Impact on Ba2 CFR
-----------------------------------------------------------
Moody's Investors Service says that China Oil and Gas Group
Limited's (COG) profit warning is credit negative, but does not
have an immediate impact on its Ba2 corporate family rating and
senior unsecured rating, as well as their stable ratings outlook.
On 28 January 2016, COG announced that it would record a decline
in consolidated net profit for the year ended 31 December 2015,
compared to a year ago, due to the significant drop in the
international crude oil price.
"COG's Ba2 ratings incorporate our expectation of its weakened
credit profile due to the weak oil price and prolonged delays in
cost pass-through of its Qinghai projects," says Ivy Poon, a
Moody's Assistant Vice President and Analyst.
On 30 November 2015, Moody's downgraded COG's ratings to Ba2 from
Ba1, reflecting the anticipated deterioration in COG's credit
quality and financial metrics.
Moody's expects a heightened level of business risk from its
upstream exposure will remain in the near term due to a
challenging outlook under the weak oil price environment.
There is also increasing risk of non-cash impairment losses on its
upstream assets, which will adversely impact COG's financial
profile and reduce its financial headroom relative to the rating
tolerance levels.
The company's upstream business accounted for 6.3% of COG's total
revenue in 1H 2015 and 16.6% of its total assets at end-June 2015.
The acquisition of the upstream business in Canada was completed
in July 2014 at a consideration of CDN235 million.
Furthermore, the prolonged delays in passing increased costs to
non-residential customers in Qinghai Province over the last three
years have significantly weakened the company's profit margin and
track record of cost pass-through in a timely manner. Qinghai
Province accounted for around half of COG's total gas sales over
the past few years.
Nevertheless, Moody's expects COG's dollar margin to improve in
2016. As indicated by the company, its Qinghai projects finally
received regulator's approval for cost pass-through in December
2015 to partially rectify the delays in tariff adjustments in 2014
and 2015. The corresponding price adjustments to non-residential
customers were effective on 1 January 2016.
As a result, Moody's expects a moderate improvements in the
company's overall financial profile in 2016, which will remain in
line with the current Ba2 rating level.
But Moody's will review the implications on COG's ratings, should
there be any material deviation from these expectations.
China Oil and Gas Group Limited is mainly engaged in the piped
city gas business in China. The company also expanded the oil and
gas production business in Canada in 2014. Its revenue reached
around HKD7.7 billion and HKD3.9 billion in 2014 and 1H 2015,
respectively.
The company is listed on the Hong Kong Exchange. Mr. Xu Tieliang,
the company's chairman, is the largest shareholder, with a 22.1%
stake.
================
H O N G K O N G
================
NOBLE GROUP: Investors Agree to $750MM Stake Sale in Agri Venture
-----------------------------------------------------------------
David Sheppard and Jeevan Vasagar at The Financial Times report
that Noble Group, the indebted commodities trader struggling with
allegations of aggressive accounting, has won investor approval to
sell its stake in an agricultural joint venture to China's state
controlled grains trader.
According to the FT, the planned sale of Noble Agri to Cofco
(China National Cereals, Oils and Foodstuffs Corporation) for an
initial $750 million was backed by 90% of shareholders who voted
at a special meeting in Singapore.
The FT relates that Noble Group hopes the deal, which needs
regulatory approval, will help manage a debt-load that has come
into sharp focus after allegations of aggressive accounting
emerged almost 12 months ago.
With the atmosphere around commodity companies already soured by
the sharp decline in prices, Noble has seen its share price fall
75% since last February, according the FT. It closed at S$0.27 on
Jan. 28, matching a recent 12-year low, the FT notes.
"The overwhelming mandate we have seen for the sale of our
remaining shareholding in Noble Agri confirms the shareholder
support we have in our move towards becoming a smaller and nimbler
company," the report quotes Yusuf Alireza, Noble Group chief
executive as saying.
The FT relates that Singapore-listed Noble is still looking to
bring in a strategic investor to help reinforce its balance sheet,
chairman and founder Richard Elman said, though he declined to
provide any detail on the discussions.
"We are working on it and we will announce something as soon as
it's appropriate," the FT quotes Mr. Elman as saying. "I don't
want to put a timeframe on it because I don't control it. It's not
entirely up to me; there are other people involved."
Noble Group, based in Hong Kong, has about $2.6 billion of debt
due this year, the FT discloses. The company's market
capitalisation is about $1.3 billion after the rout in its shares.
The FT notes that the company's debt has been cut to junk status
by the two main rating agencies, citing concerns about Noble's
ability to generate cash.
According to the report, the sale of Noble Agri also required a
writedown of its carrying value in the parent company's accounts,
spooking bankers who said it added credence to claims made about
how Noble Group valued subsidiaries.
That was one of the key accusations first made by Iceberg Research
early in 2015, alongside allegations it had inflated the value of
its long-term commodity deals, booking billions of dollars in
earnings long before it received any cash, says the FT. Noble has
denied any wrongdoing and dismissed Iceberg Research as the work
of a former employee. A PwC review of its mark-to-market
accounting said it was within international rules.
Iceberg Research said in a statement on Jan. 27 that it considered
the majority of its claims about Noble Group had been validated,
and said it was preparing a fourth report on the company, the FT
relays.
The FT says Noble's bonds have come under severe pressure. Those
due in 2020 are priced at 44 cents on the dollar. Earlier on
Jan. 28 it said it had spent $32.6 million buying back some of its
2018 and 2020 bonds, the FT relates. Having sold its agricultural
arm and largely shut down metals trading last year, Noble is now
largely reliant on its oil business -- which is said to have
performed strongly last year -- and its coal and bulks business,
which is said to have performed less strongly, the FT notes.
About Noble Group
Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- is
a Hong Kong-based company engaged in supply of agricultural,
industrial and energy products. The Company supplies agricultural
and energy products, metals, minerals and ores .Agriculture
products include grains, oilseeds and sugar to palm oil, coffee,
and cocoa. Energy business includes coal, gas and liquid energy
products. In metals, minerals and ores (MMO), it supplies iron
ore, aluminum, special ores and alloys. The Company operates
nearly in 140 locations. It supplies growth demand markets in Asia
and Middle East. Alcoa World Alumina and Chemicals is the
subsidiary of this company.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 11, 2016, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Hong Kong-based commodities
trading company Noble Group Ltd. to 'BB+' from 'BBB-'. At the
same time, S&P lowered the long-term issue rating on Noble's
outstanding senior unsecured notes to 'BB' from 'BBB-'.
Standard & Poor's also lowered its long-term Greater China
regional scale rating on Noble to 'cnBBB' from 'cnBBB+' and on the
company's notes to 'cnBB+' from 'cnBBB+'. The ratings remain on
CreditWatch with negative implications.
The TCR-AP on Jan. 4, 2016, reported that Moody's Investors
Service has downgraded Noble Group Limited's senior unsecured bond
ratings to Ba1 from Baa3 and the provisional rating on its senior
unsecured MTN program to (P)Ba1 from (P)Baa3.
At the same time, Moody's has assigned a Ba1 corporate family
rating to Noble and has therefore withdrawn the company's issuer
rating. The rating actions conclude Moody's review for downgrade
initiated on Nov. 16, 2015. The outlook for the ratings is
negative.
NORD ANGLIA: Moody's Says 1Q FY2016 Results Support 'B1' CFR
------------------------------------------------------------
Moody's Investors Service says Nord Anglia Education, Inc (NAE)
reported results for the fiscal first quarter ended November 2016
(1Q FY2016) that are broadly in line with expectations and support
its B1 corporate family rating (CFR) and the B1 ratings on its
senior secured term loan B and senior unsecured revolving credit
facility issued by Nord Anglia Education Finance LLC.
The rating outlook is stable.
NAE reported 1Q FY2016 revenue growth of 61% year-on-year, boosted
by (1) its acquisitions of schools in Switzerland, China, Vietnam,
the United States and Mexico; and (2) hikes in tuition fees at
rates greater than cost inflation.
On a pro forma basis, which assumes full-year revenue
contributions from the acquired schools, NAE's EBITDA margins
continue to exceed 30%.
"Pro forma for its recent acquisitions, NAE's leverage remains
high for the ratings with adjusted debt to EBITDA of about 7.1x
for the 12 months ended November 2015. We nonetheless expect that
leverage will trend down during the course of FY2016 towards
6.0x," says Joe Morrison, a Moody's Vice President and Senior
Credit Officer.
The forecast for lower leverage reflects incremental earnings
contributions from the schools NAE acquired in FY2015 as well as
increases in enrollments and tuition fees.
At end-November 2015, NAE had $247 million in cash holdings which
was sufficient to cover its short-term debt of $160 million.
NAE's stable and predictable cash flows, which stem from demand
for its premium educational services, support the ratings. Moody's
also expects that NAE will be disciplined in executing its
acquisition strategy, acquiring individual schools in existing
markets that are accretive to earnings and cash flow.
Nord Anglia Education, Inc. is headquartered in Hong Kong and
operates 42 international premium schools in Asia, Europe, the
Middle East, and North America, with more than 34,300 students
ranging in level from pre-school through to secondary school. NAE
also provides outsourced education and training contracts with
governments and curriculum products through its Learning Services
division. For the 12 months ended November 2015, NAE generated
revenues of about $669 million.
=========
I N D I A
=========
AKAL PIPE: ICRA Assigns 'D' Rating to INR9.40cr LT Loan
-------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]D to the INR9.40
crore fund based bank facilities of Akal Pipe Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund
Based Limits 9.40 [ICRA]D; assigned
ICRA's rating primarily factors in the delays in debt servicing by
API in the absence of healthy order inflows over the past few
years. ICRA also notes that the heavy losses incurred by the
company in the past have led to significant erosion of net worth,
which in turn has resulted in weak debt protection metrics. ICRA
also takes cognizance of API's low capacity utilization over the
past few years due to the company's moderate scale of operations,
fragmented industry, high intensity of competition and low demand
from the end user industries. However, the long-standing
experience of API's promoters in the industry is noted as a
positive.
The servicing of debt in timely manner will be the key rating
sensitivity. This, in turn will be dependent on API's ability to
register a sustained improvement in the sales and its liquidity
position, hence the company's ability to secure new orders and
optimally manage its working capital cycle, will be key
monitorables.
API was established in March 2012 as a partnership firm with Mr.
Harbant Singh, Mr. Gurnam Singh, Mr. Harpreet Singh, Mr. Yadvinder
Singh and Mr. Nazam Singh as partners. The entity is engaged in
the manufacturing of RCC (Reinforced cement concrete) pipes and
manholes. The manufacturing facility is located in Solan, Himachal
Pradesh on a total area of more than 1 lakh square feet. API
caters to the customers located mainly in Punjab and Haryana. The
primary raw material involved in the manufacturing process
involves concrete, sand, cement, steel/iron rods and other
consumables which are procured from Uttarakhand, Himachal Pradesh
and Punjab.
Recent Results
The company reported a net loss of INR0.76 crore on an operating
income of INR4.27 crore in FY2014-15, as against a net loss of
INR1.03 crore on an operating income of INR3.86 crore in the
previous year.
AL-SAMI FOOD: CRISIL Suspends 'D' Rating on INR56.6MM Loan
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Al-Sami
Food Exports Private Limited (AFEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL D
Export Packing Credit 56.6 CRISIL D
Term Loan 13.4 CRISIL D
The suspension of ratings is on account of non-cooperation by
AFEPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AFEPL is yet to
provide adequate information to enable CRISIL to assess AFEPL'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'.
AFEPL was founded by Mr. Abdul Salam and his wife, Mrs. Azimunnesa
Begum, in 2009, and commenced operations in 2011. The company
exports processed beef.
ANTONY MOTORS: ICRA Reaffirms B+ Rating on INR8.50cr LT Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ for the
INR8.50 crore long-term, fund based limits of Antony Motors
Private Limited. ICRA has also reaffirmed the short-term rating of
[ICRA]A4 for the INR10.00 crore short-term, non-fund based limits
of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, fund-
based facilities 8.50 [ICRA]B+ reaffirmed
Short-term, non-
fund-based facilities 10.00 [ICRA]A4 reaffirmed
The ratings reaffirmation takes into account the experience of the
promoters in the commercial vehicle body parts manufacturing
business for nearly two decades, established brand image,
resulting in repeat orders from customers, and well diversified
product portfolio. The ratings are however, constrained by tepid
revenue growth on account of slowdown in demand, significant
exposure to corporate guarantees extended to group companies and
susceptibility of margins to increase in the production cost. The
ratings also factor in the modest profitability and high working
capital intensity of the company.
Antony Motors Private Limited was incorporated in the year 1992
for manufacture of special purpose vehicles for Solid Waste
Management and Motor Body Fabrication. The company manufactures
different types of automobile coach bodies and vehicle- mounted
special purpose equipment and garbage bins. The company also
carries out general fabrication and hot dip galvanizing
activities. The existing range of products include Compactors,
Galvanized and Painted bins, Cement Bulker, Suction machines,
Portable Cabins, Suction cum Jetting Machine, Tipper, Dumper
Placer, Transfer Stations, Fire Fighting Vehicles, Refuellers and
other fabricated special purpose vehicles. AMPL was one of the
first companies in the body builder and fabricator category to get
ISO 9001:2000 and subsequently ISO 9001:2008 certifications.
Recent Results
Based on the audited results for FY2015, AMPL on a standalone
basis has reported a profit before tax (PAT) of INR0.93 crore on
an operating income (OI) of INR37.61 crore as against a PAT of
INR0.87 crore on an OI of INR40.76 crore in FY2014 (Audited).
ARTHI TEXTILES: CRISIL Reaffirms B+ Rating on INR60MM Loan
----------------------------------------------------------
CRISIL's rating on the bank facilities of Arthi Textiles (AT)
continues to reflect modest scale of operations in the fragmented
textile industry, susceptibility of its operating margin to
volatility in raw material prices, and its below-average financial
risk profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Cash Term Loan 15 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
industry experience of the firm's promoters.
Outlook: Stable
CRISIL believes that AT will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm records a
significant increase in its revenue and profitability, resulting
in a considerable improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if AT's cash
accruals decline considerably or it undertakes a larger-than-
expected debt-funded capital expenditure programme, its working
capital management deteriorates, or its partners withdraw
substantial capital, resulting in further weakening of its
financial risk profile.
Update
AT reported revenues of INR292 million in 2014-15 (refers to
financial year, April 1 to March 31), growing by 6 per cent year
on year. The same was in line with CRISIL expectations. AT is
expected to continue its topline growth and report revenues of
around INR310 million for 2015-16, with revenue of INR230 million
reported for 9 months till December 2015 in 2015-16. The firm's
operating profitability increased to 3.8 per cent in 2014-15 as
compared to 2.7 per cent in 2013-14, driven by the capex to
increase productivity and operational efficiencies and is expected
to remain stable at similar levels..
The firm's working capital cycle remains moderate with inventory
moderate levels of 2 to 3 months and low debtor levels. The firm
is expected to maintain its working capital cycle over the medium
term, although credit extended by suppliers is expected to remain
negligible, leading to dependence on bank debt.
AT's financial risk profile continues to remain constrained by
modest net worth and weak debt protection metrics. AT is expected
to have weak debt protection metrics as reflected by its net cash
accruals to total debt and interest coverage ratio of about 5
percent and 1.47 times, respectively, in 2015-16 due to weak
profitability and high dependence on bank lines.
AT has moderate liquidity marked by sufficient cash accruals to
meet debt repayment obligations. The bank lines remain utilized at
about 85 percent for the past twelve months. CRISIL believes that
AT's liquidity will remain moderate over the medium term.
AT, set up in 1995, manufactures cotton yarn based out of
Coimbatore, Tamil Nadu. Its day-to-day operations are managed by
Mr. P. Ramaswamy.
BATANAGAR EDUCATION: CRISIL Cuts Rating on INR130MM Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Batanagar Education and Research Trust (BERT) to 'CRISIL D' from
'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 130 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The rating downgrade reflects delays by the trust in meeting term
loan repayment obligations. The delays were because of cash flow
mismatches.
BERT has a below-average financial risk profile because of a small
networth, moderate gearing, and weak debt protection metrics.
However, it is expected to benefit over the medium term from the
strong demand prospects for education in India.
BERT was registered in February 2007 as a public, non-profit,
charitable trust. It has set up an engineering college, Batanagar
Institute of Engineering Management and Science, at Maheshtala in
Kolkata.
BHAGYA DIAMOND: ICRA Suspends B+ Rating on INR6.0cr Bank Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR6.00
crore bank facilities of Bhagya Diamond Jewellery Private Limited.
The suspension follows ICRAs 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.
Bhagya Diamond Jewellery Private Limited was incorporated in 2009
and is primarily engaged in trading of gold ornaments and diamond
jewellery along with manufacturing of jewellery in limited
quantities. The promoters of the company are also involved in a
few other companies engaged in similar line of activity in
Ahmedabad. The company has strong association with established
jewellery manufacturers and reputed retail jewellers in Ahmedabad.
In FY14, the shareholding pattern of the company underwent a
change with Bhagya Infrastructure Private Limited's shareholding
of ~18.52% in BDJPL acquired by the remaining two shareholders
namely Mr. Anant Shah and Mr. Jigar Hebra.
BRAHMAPUTRA INFRASTRUCTURE: ICRA Rates INR478.08cr Loan at 'D'
-------------------------------------------------------------
ICRA has assigned a rating of [ICRA]D for the INR145.98 crore fund
based limits, INR269.74 crore term loans and INR478.08 crore non
fund based limits of Brahmaputra Infrastructure Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 145.98 [ICRA]D assigned
Term Loans 269.74 [ICRA]D assigned
Non Fund Based
Limits 478.08 [ICRA]D assigned
The assigned ratings take into account the delays in the debt
servicing of the company due to loss-making operations and high
working capital intensity. This follows from BIL being under the
Corporate Debt Restructuring (CDR) scheme since March 2014.
Nevertheless, ICRA has taken note of the long track record of
promoters in the construction industry and the steps taken by the
management to improve its financial profile and liquidity
position. These include focusing on projects in specific
geographies, projects with better profitability, subcontracting
part of projects to improve execution, and various cost-control
measures.
Originally established as a proprietorship firm in 1987 and
incorporated in September 1998, Brahmaputra Infrastructure Limited
(earlier Brahamputra Consortium Limited) is a construction company
executing mining, civil construction, roads & highway projects.
Over the years, BIL has executed several contracts in various
segments like building construction, roads, mining, tunnels, other
civil construction works etc. mainly for public sector
undertakings (PSUs) and Government departments. Further, during
the current financial year, a group company Brahmaputra
Infraproject Limited got merged into BIL and consequently, BIL got
listed on stock exchanges.
Recent Results
In FY2015, the company reported a net loss after tax of INR25.4
crore on an operating income of INR277.4 crore vis-…-vis loss of
INR20.9 crore on an operating income of INR259.6 crore in FY2014.
CHOTTA SHIMLA: ICRA Suspends B+ Rating on INR15cr Term Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR15 crore
Term Loan and [ICRA]A4 assigned to INR0.75 crore of Non-fund based
Limits of Chotta Shimla Projects Pvt. Ltd. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
DARSHAN SAGAR: ICRA Assigns 'B+' Rating to INR15cr Loan
-------------------------------------------------------
ICRA has assigned long term rating of [ICRA]B+ to the INR15.00
crore fund based facility of Darshan Sagar Developers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based facility 15.00 [ICRA]B+ assigned
Rating Rationale
The assigned rating favourably factors in established track record
of the promoters by virtue of developing real estate projects in
excess of 10 years in Thane, low permitting risk on account of
presence of all regulatory approvals and clear land title. The
assigned rating also takes into consideration the minimal funding
risk on account of full disbursement of bank funding and infusion
of 100% of the committed capital by the promoters as on December
2015 into the project.
The rating is however constrained by funding risk since 44% of the
project funding is to be met through customers' advances which are
contingent on timing of booking and healthy collection efficiency,
and geographical risk on account of competition from upcoming real
estate projects in the vicinity. The risk of capital withdrawal
associated with the partnership nature of the entity further adds
to the credit concern.
Mumbai based Darshan Sagar Developers, a joint venture between Mr.
Sanjeev Malik promoted Soham Group and Mr. Jitendra Mehta of JVM
Spaces, was incorporated in the year 2011. Mr. Sanjeev Malik
independently as also with other JVs has developed approximately
13 lakh sq ft in Mulund and Thane over the past 10 years and
currently he is developing ~10 lakh sq ft in Thane and Khandala.
Mr. Jitendra Mehta is the chief founder of JVM Spaces and had been
associated with Soham Group for ~10 years and served as the chief
executor in many projects.
DAYAL LUMBERS: ICRA Suspends B+/A4 Rating on INR10cr Bank Loan
--------------------------------------------------------------
ICRA has suspended the [ICRA]B+/A4 rating for the INR10 Crore bank
facilities of Dayal Lumbers Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
DHARAMPAL PIPE: CRISIL Assigns 'B' Rating to INR70MM Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Dharampal Pipe and Tube Pvt Ltd (DPTPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable
The rating reflects the modest scale of operations in the steel
trading industry and the weak financial risk profile because of
moderate total outside liabilities to tangible networth ratio and
weak debt protection metrics. These rating weaknesses were
partially offset by the experience of promoters in the steel
trading industry and efficient working capital management.
Outlook: Stable
CRISIL believes DPTPL will benefit from the promoters'
longstanding industry experience. The outlook may be revised to
'Positive' in case of a significant ramp-up in the scale of
operations and an increase in operating profitability, along with
improvement in debt protection metrics and prudent working capital
management. Conversely, the outlook may be revised to 'Negative'
if any further decline in revenue and profitability, or larger-
than-expected, debt-funded capital expenditure, or considerable
weakening of liquidity on account of an increase in working
capital requirement leads to deterioration in the financial risk
profile.
DPTPL was incorporated on February 14, 2013, and commenced
operations from April 1, 2013. The company, promoted by Mr. Ajay
Kumar Singhal, Ms. Rinky Singhal, and Surge Exim Pvt Ltd, trades
in round steel tubes, mild steel pipes, and galvanised iron pipes.
DHURIA RICE: ICRA Reaffirms 'B' Rating on INR6.0cr LT Loan
----------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B on the INR6.00
crore fund based bank facilities of Dhuria Rice Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
Long Term 6.00 [ICRA]B; reaffirmed
The rating reaffirmation takes note of the small scale of
operations, highly competitive nature of the rice milling industry
and the vulnerability of the firm's profitability to fluctuations
in raw material prices which has resulted in fluctuating operating
profit margins which is as a result of impact in the sales
realization and volume of rice. The high gearing of the firm,
arising out of substantial debt funding of working capital
requirements, coupled with low profitability, has resulted in the
firm's weak coverage indicators. Further, the rating continues to
factor in agro climatic risks, which can impact the availability
of the basic raw material. However this risk is partially offset
by the proximity of the mill to major rice growing areas which
results in easy availability of paddy. The rating also favorably
takes into account the extensive experience of the promoters in
the rice industry.
Going forward, the firm's ability to register revenue growth,
improvement in profitability and optimally managing the working
capital cycle its coverage indicators will be the key rating
sensitivities.
DRM was established in 1978 as a partnership firm with Ashok
Kumar, Krishna Devi and Surinder Kumar as partners. In the year
2007 partnership was re-constituted with Mr. Arun Kumar, Mr. Ashok
Kumar and Krishna Devi as partners. In 2012 the partnership firm
was reconstituted again with Mr. Ashok Kumar and Mr. Arun Kumar as
partners in equal ratios. DRM is engaged in the processing and
trading of non basmati rice in the domestic markets. The head
office as well as the manufacturing plant of the company is
located at Fazilka, Punjab with a milling capacity of 2 tonnes per
hour of paddy.
Recent Results
DRM reported a net profit of INR0.06 crore on an operating income
of INR17.31 crore for 2014-15, as compared to a net profit of
INR0.07 crore on an operating income of INR24.32 crore for the
previous year.
DOSHI CERAMIC: ICRA Reaffirms 'B' Rating on INR4.88cr Term Loan
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B assigned to
the INR4.88 crore term loans and INR0.50 crore fund based cash
credit facilities of Doshi Ceramic Industries. ICRA has also
reaffirmed the short term rating of [ICRA]A4 to the INR0.20 crore
short term non fund based facilities of DCI.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 0.50 [ICRA]B; Reaffirmed
Term Loan 4.88 [ICRA]B; Reaffirmed
Bank Guarantee 0.20 [ICRA]A4; Reaffirmed
The ratings continue to remain constrained by the firm's small
scale of operations as well as stretched liquidity position as
evident from high utilization of working capital limits as well as
weak debt coverage indicators. The ratings are further constrained
by the intense competition given the fragmented nature of industry
with large number of sanitary ware manufacturers in the region and
vulnerability to fluctuations in raw material & fuel prices;
however the recent announcement of reduction in piped natural gas
(PNG) prices may have favourable impact on profitability in near
term, as gas is the major source of fuel. The ratings also take
note of 'Doshi Ceramic Industries status as a partnership firm,
hence any substantial withdrawals from capital account will impact
the net worth and thereby the gearing levels.
The ratings however favourably take into account the locational
advantage by virtue of being located in the ceramic hub of Morbi
(Gujarat) which facilitates easy availability of raw material as
well as financial profile characterized by moderate profitability
as well as improved capital structure reflected from decline in
gearing to 1.74 times as on March 31, 2015 from gearing of 2.41
times as on March 31, 2014.
Doshi Ceramic Industries (DCI) was established on 1st April 2012
and is promoted by Mr. Bipinchandra Doshi and Mr. Rajesh Doshi.
DCI is based in the Thangadh ( Morbi) region of Gujarat and is
engaged in manufacturing of ceramic sanitary ware products like
wash basins, closets, urinals, pansand related accessories. The
firm has commenced its trial runs as well as commercial production
from November 2012; however the sales were started from January
2013. The plant has an installed capacity of 10,800 MTPA. It
currently manufactures sanitary products of variants designs and
shapes with the current set of machineries and production
facilities.
Recent Results
For the year ended 31st March, 2015, the firm reported an
operating income of INR6.02 crore with profit after taxes (PAT) of
INR0.33 crore.
EFFICIENT ENGINEERS: CRISIL Suspends 'D' Rating on INR73.5MM LOC
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Efficient Engineers India Private Limited (EEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL D
Cash Credit 50 CRISIL D
Letter of Credit 73.5 CRISIL D
The suspension of ratings is on account of non-cooperation by EEPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EEPL is yet to
provide adequate information to enable CRISIL to assess EEPL'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'.
EEIPL, incorporated in 1992 in Ahmedabad (Gujarat), is promoted by
Mr. Ketan Patel. It is an ISO 9001-2000-certified company and it
undertakes electromechanical contracts. It also carries out small
civil work contracts for government entities.
EMAAR MGF: ICRA Lowers Rating on INR600cr Loan to 'D'
-----------------------------------------------------
ICRA has revised the long term rating for INR600 crore Non-
convertible Debenture programme of Emaar MGF Land Limited from
[ICRA]B to [ICRA] D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 600 [ICRA]D; rating revised
Debentures
The rating revision takes into account delays in servicing on debt
obligations due to stretched liquidity position of the company
resulting from the slowdown in real estate market coinciding with
sizeable outflows towards interest and debt repayment. The
liquidity position continues to remain stretched due to weak
operational and financial profile of the company.
The rating is constrained by decline in sales velocity and cash
flows in FY16YTD and delays in execution of ongoing projects.
ICRA's rating also takes into account EMGF's large and high cost
debt obligations, significant losses in last four years, subdued
debt coverage indicators and its significant debt repayment
commitments, exposing it to funding gap. The rating further
factors in the company's high exposure to geographical risk owing
to concentration of most of its on-going projects in one city i.e.
Gurgaon (Haryana) and on-going litigations against the company,
whose financial impact cannot be ascertained since the cases are
sub-judice.
The rating, however, drives comfort from EMGF's strong parentage,
demonstrated support from Emaar Properties PJSC through fund
infusion at various stages and EMGF's substantial land bank with
limited commitment in terms of land payments.
Going forward, regularization of debt servicing, improvement in
project execution and sales velocity as well as movement in the
debt levels will be key rating sensitivities.
Emaar MGF Land Limited (EMGF) is a joint venture (JV) between the
MGF Group (49.24% stake), an established real estate developer in
the National Capital Region, and Emaar Properties PJSC (48.86%
stake). It commenced operations in India in February 2005. Emaar
Properties PJSC is one of the largest real estate developers in
the Gulf region with a presence in over 12 countries.
EMGF is present in various segments of the Indian real estate
industry, namely the residential, commercial, retail and
hospitality sectors. At present, it is developing residential and
commercial projects in NCR, Mohali, Hyderabad, Lucknow, Indore and
Chennai. It has land reserves approximating ~9000 acres. The
company is currently developing 49 projects with total saleable
area of ~40.6 million sq. ft. with total saleable value of
INR~18,745 crore.
Recent Results
As per the provisional results available for FY15, Emaar MGF Land
Limited (EMGF) reported operating income of INR1566 crore
(previous year INR1664 crore) and net loss of INR353 crore
(previous year net loss of INR384 crore).
FLOCKSUR INDIA: ICRA Reaffirms B+ Rating on INR10cr Loan
--------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B+ to the
INR10.00 crore fund-based bank facilities of Flocksur India
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based facilities 10.00 [ICRA]B+; reaffirmed
ICRA's rating continues to be constrained on account of FIPL's
highly working capital intensive operations and low operating
profitability though there was some improvement in FY15. The
company has an elongated working capital cycle, primarily due to
the high inventories it needs to maintain in order to offer wide
variety of fabric to its customers, as well as due to its
relatively high receivables collection period. Due to the
company's limited cash accruals, the high working capital
intensity has necessitated high dependence on borrowings to
achieve growth. The company's large working capital requirements
have led to a stretched liquidity position, as reflected in full
utilization of working capital limits and frequent use of ad-hoc
borrowings.
However, the rating positively factors in the extensive
experience, of nearly two decades, of FIPL's promoters in fabric
trading and of over a decade in the manufacturing of flock
fabrics, and their established sales and distribution network as
reflected in the ability to scale up revenues.
Going forward, the company's ability to maintain adequate
liquidity, while sustaining the pace of revenue growth and
improvement in operating profitability, will be the key rating
sensitivities.
Incorporated in 2013, FIPL is engaged in manufacture of flock
fabrics which find application in furnishing products. Prior to
the incorporation of FIPL, these operations were earlier carried
out under the partnership firm Flocksur India, having FIPL's
promoters Mr. Sunil Girdhar and his wife Mrs. Urvashi Girdhar as
partners. FIPL's manufacturing unit located in Gurgaon, Haryana
produces around 4-5 lakh meters of flocked fabric per month.
Recent Results
FIPL reported an Operating Income (OI) of INR48.7 crore and a
Profit after Tax (PAT) of INR0.4 crore in FY15 as against OI of
INR40.9 crore and PAT of INR0.3 crore in the previous year.
GARG RICE: ICRA Reaffirms 'B' Rating on INR1.0cr LT Loan
--------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B on the INR1.00
crore fund based bank facilities of Garg Rice Mills. ICRA has also
reaffirmed its short term rating of [ICRA]A4 on the INR13.00 crore
fund based bank facilities of GRM.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
Long Term 1.00 [ICRA]B; reaffirmed
Fund Based Limits-
Short Term 13.00 [ICRA]A4; reaffirmed
The rating reaffirmation takes note of the moderate scale of
operations, highly competitive nature of the rice milling industry
and the vulnerability of the firm's profitability to fluctuations
in raw material prices which has resulted in low profit margins
which is as a result of impact in the sales realization and volume
of rice. The high gearing of the firm, arising out of substantial
debt funding of working capital requirements, coupled with low
profitability, has resulted in the firm's weak coverage
indicators. Further, the rating continues to factor in agro
climatic risks, which can impact the availability of the basic raw
material. However this risk is partially offset by the proximity
of the mill to major rice growing areas which results in easy
availability of paddy. The rating also favorably takes into
account the robust growth in the operating income in the past few
and extensive experience of the promoters in the rice industry.
Going forward, the firm's ability to register revenue growth,
improvement in profitability and optimally managing the working
capital cycle its coverage indicators will be the key rating
sensitivities.
GRM was established in 1980 as a partnership firm and is currently
being managed by Mr. Sugam Chand, Mr. Radhe Shyam and Mr. Nilesh
Garg and all the partners are actively engaged in the management
of the firm. GRM is engaged in processing and trading of basmati
and non basmati rice in the domestic market, and also exports to
countries in the Middle East and Europe. The firm has its
manufacturing unit at Taraori, Karnal in Haryana, with a milling
capacity of 2 tonnes per hour of paddy.
Recent Results
GRM reported a net profit of INR0.28 crore on an operating income
of INR78.60 crore for 2014-15, as compared to a net profit of
INR0.23 crore on an operating income of INR72.27 crore for the
previous year.
GAYATRI ROLLING: CRISIL Reaffirms 'B' Rating on INR55MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Gayatri
Rolling Mills Private Limited (GRMPL) continues to reflect GRMPL's
below-average financial risk profile because of modest networth,
high gearing, and inadequate debt protection metrics, and small
scale of operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B/Stable (Reaffirmed)
Term Loan 30.9 CRISIL B/Stable (Reaffirmed)
These weaknesses are partially offset by semi-integrated
operations and promoters' extensive experience in manufacturing
and trading in steel products.
Outlook: Stable
CRISIL believes GRMPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if the company reports significant increase in cash
accrual led to higher revenue and profitability, while maintaining
its working capital cycle. Conversely, the outlook may be revised
to 'Negative' in case of lower-than-expected cash accrual or
stretch in working capital cycle.
GRMPL, established as a partnership firm was reconstituted as a
private limited company in 2005, is promoted by Raipur
(Chhattisgarh)-based Mr.Umesh Agarwal and his family. The company
manufactures steel ingots and thermo-mechanically treated (TMT)
bars, and is ISO 9001:2008 certified. The promoters have industry
experience of over 10 years. Most of the ingot output is used for
captive consumption, and the rest is sold in the open market.
GURUKRUPA DEVELOPERS: ICRA Reaffirms B+ Rating on INR125cr Loan
---------------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]B+ assigned to
the INR125.00 crore long-term bank facilities of Gurukrupa
Developers DN Nagar Project.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 125 [ICRA]B+ reaffirmed
The re-affirmation of the rating factors in the significant market
risks for the firm with nearly 20% of the total saleable area
under the Marina Enclave project tied up as on date, despite the
advanced stages of the project. The sales velocity has remained
subdued in the past year with near stagnant rates (approximately
INR10,500 / sqft). The market risks are further accentuated by the
impending supply in the project region. Going forward, with the
repayment of the debt to commence from Jun-16, timeliness of
incremental bookings and collections from customers remains
critical from a credit perspective.
The rating, however, positively takes into account the long
standing experience of the promoters in the real estate business.
Further, the rating draws comfort from achievement of financial
closure, receipt of key approvals as well as healthy progress of
execution on ground.
Incorporated in 2004, Gurukrupa Developers DN Nagar Project (GD)
is a partnership firm involved in real estate development in
Mumbai, Maharashtra. The firm is a part of the Gurukrupa Group
involved in real estate development mainly in Mumbai, with 13.55
lakh sqft of real estate properties developed till date. The Group
was promoted in 1994 by Mr. Mansukhbhai Kothari, Mr. Mansukhbhai
Sureja and Mr. Chetan Patel. The firm is currently executing a
residential real estate project in Mumbai - Marina Enclave at
Malad (West). The firm has completed another residential-cum-
commercial re-development project known as Shubh Residency, at
Andheri (West) in FY 2014.
JAJODIA EXPORTS: ICRA Assigns 'B' Rating to INR7.50cr Cash Loan
---------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to INR7.50 crore
of cash credit facility of Jajodia Exports Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.50 [ICRA]B assigned
The rating primarily takes into account the adverse financial risk
profile of the company characterized by nominal cash accruals,
high gearing and weak debt-coverage indicators; significant
decline in operating profitability during FY15, owing to
unfavourable market conditions, which further deteriorates the
debt-coverage indicators of the company.
The rating also factors in the increase in the working capital
intensity of operations during the last two financial years, owing
to higher inventory build-up, adversely impacting the liquidity
position of the company as also reflected by the higher
utilization of the working capital limits. The rating is further
constrained by JEPL's small scale of operations at present. The
rating, however, derives support from the long experience of over
two decades of the promoters in the trading business.
Incorporated in 2011, Jajodia Exports Private Limited (JEPL) is
engaged in the trading of food grains, diesel engines for
irrigation pumps and completely knocked down E-rickshaw
components. The promoters of JEPL started operations in the year
1995 as a partnership firm under the name of Jajodia Exports and
were initially engaged in the trading of food grains only. Over
the period of time the entity has also ventured into trading of
diesel engines for irrigation pumps and completely knocked down E-
rickshaws. JEPL primarily sells food grains and E-rickshaws (CKD)
in the state of West Bengal, while diesel engines are sold in the
state of Uttar Pradesh, Bihar and West Bengal. Due to stiff
competition from various unorganised players in the trading
segment the pricing is driven by the market.
Recent Results
JEPL registered a profit after tax of INR0.01 crore on an
operating income of INR58.05 crore in FY15, as compared to a
profit after tax of INR0.35 crore on an operating income of
INR47.75 crore in FY14.
JYOTI HOSPITAL: CRISIL Assigns 'B-' Rating to INR90MM Term Loan
---------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the long-term
bank facilities of Jyoti Hospital Private Limited (JHPL) and has
assigned its 'CRISIL B-/Stable' rating to the facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B-/Stable (Assigned;
Suspension Revoked)
Overdraft Facility 30 CRISIL B-/Stable (Assigned;
Suspension Revoked)
Term Loan 90 CRISIL B-/Stable (Assigned;
Suspension Revoked)
The rating was 'Suspended' by CRISIL by the Rating Rationale dated
August 29, 2015, since JHPL 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.
The rating reflects JHPL's small scale of operations in the
healthcare industry, geographical concentration in revenue profile
and below average financial risk profile. These weaknesses are
partially offset by its promoters' industry experience.
Outlook: Stable
CRISIL believes JHPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' in case of more-than-expected increase in revenue and
operating profitability leading to higher-than-expected net cash
accrual. Conversely, the outlook may be revised to 'Negative' in
case of lower-than-expected revenue or profitability, or large
debt-funded capital expenditure, leading to weakening of financial
risk profile and stretched liquidity.
JHPL, incorporated in 1994, is promoted by Dr. A K Bansal, his
wife Dr. Vandana Bansal, and Dr. Arpit Bansal. It manages the
multi-speciality, 500-bed Jeevan Jyoti Hospital in Allahabad
(Uttar Pradesh), which has departments for orthopaedics,
gynaecology, neurology, dental, paediatrics, plastic surgery,
minimally invasive surgeries, and laparoscopic surgeries.
K S R GRANITE: CRISIL Cuts Rating on INR50MM LOC to 'D'
-------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of K S R Granite Private Limited (KSRGPL) and have assigned its
'CRISIL D' ratings to the short-term bank facilities of KSRGPL.
The rating downgrade reflects instances of delay by KSRGPL in
servicing its term debt; the delays were because of the company's
weak liquidity owing to working capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Bill Discounting 40 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Letter of Credit 50 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Packing Credit 40 CRISIL D (Reassigned)
Long Term Loan 150 CRISIL D (Reassigned)
KSRGPL has a weak financial risk profile, because of a small net
worth and high gearing, and is exposed to risks related to modest
scale of operations in the fragmented granites export industry.
However, the company benefits from its promoters' extensive
industry experience.
KSRGPL was originally set up in 1995 as a partnership concern and
was reconstituted as a private limited company in 2009. It
undertakes quarrying and sale of rough granite. Mr. K Subba Reddy
manages the daily operations.
KPR CONSTRUCTIONS: ICRA Suspends B+ Rating on INR7.0cr Bank Loan
----------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR7.00
crore bank facilities of KPR Constructions. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
KRISHAK VIKAS: CRISIL Assigns B+ Rating to INR10MM LT Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the proposed
bank facility of Krishak Vikas Samiti (KVS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 10 CRISIL B+/Stable
Bank Loan Facility
The rating reflects the society's below average financial risk
profile, marked by weak cash flows and low networth. The rating
also factors in KVS' small scale of operations and low
profitability due to not-for-profit nature of operations. These
rating weakness are partially offset by the society's track record
of having successfully implemented social welfare schemes.
Outlook: Stable
CRISIL believes that KVF will maintain a stable business risk
profile over the medium term, backed by its successful track
record at implementing social welfare schemes. The outlook may be
revised to 'Positive' if significant improvement in scale of
operations and profitability considerably strengthens financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if decline in sales or profitability, or any large, debt-funded
capital expenditure weakens the financial risk profile.
KVS primarily promotes social welfare schemes operated by the
state and Central governments in Ghazipur and Azamgarh districts
of Uttar Pradesh. It provides educational services and skill
development programmes and runs a residential schooling scheme
under Ministry of Social Justice and Empowerment for students from
the scheduled castes and tribes. Apart from this, it also runs a
school with classes from nursery till Standard 8.
LIGHT CRAFT: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Light Craft and
Sound Private Limited (LCSPL) a Long-Term Issuer Rating of 'IND
BB-'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect LCSPL's small scale of operations and moderate
credit metrics. In FY15, revenue was INR81 mil. (FY14:
INR57 mil.), net leverage (total Ind-Ra adjusted debt net of
cash/EBITDA) was 3.9x (2.4x) and EBITDA interest cover was 3.3x
(2.9x). Liquidity position was moderate with the fund-based
facility being utilized at an average of 94.4% over the 12 months
ended December 2015. Profitability was volatile over FY12-FY15
with operating EBITDA margins varying from 37.5% to 47.1%,
depending on the type of services provided.
The ratings benefit from the over 10 years of experience of the
company's promoter in the service industry.
RATING SENSITIVITIES
Positive: Substantial revenue growth and profitability improvement
leading to a sustained improvement in the overall credit metrics
will be positive rating action.
Negative: A substantial decline in the profitability resulting in
sustained deterioration in the overall credit metrics will lead to
a negative rating action.
COMPANY PROFILE
Started in 2011, LCSPL provides entertainment solutions (light and
sound) to motion pictures and advertising fraternity. LCSPL's
ratings are:
-- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
-- INR44.2 mil. long-term loans: assigned 'IND BB-'/Stable
-- INR5.0 mil. fund-based facilities: assigned
'IND BB-'/Stable; 'IND A4+'
MAHESH COTSPIN: CRISIL Reaffirms B+ Rating on INR92.8MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Mahesh Cotspin
Private Limited (MCPL) continues to reflect the company's small
scale of operations in the highly fragmented cotton ginning
industry and vulnerability of operating performance to volatility
in cotton prices.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 92.8 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 17.2 CRISIL B+/Stable (Reaffirmed)
These weaknesses are partially offset by the extensive industry
experience of MCPL's promoters and established relationship with
suppliers and customers.
Outlook: Stable
CRISIL believes MCPL will continue to benefit over the medium term
from promoters' extensive experience and established relationship
with suppliers and customers. The outlook may be revised to
'Positive' if higher-than-expected cash accrual results in a
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' if lower-than-expected cash accrual, or
stretched working capital cycle, or large, debt-funded capital
expenditure results in deterioration in financial risk profile,
particularly liquidity.
Update
Operating income declined to INR468.7 million in 2014-15 (refers
to financial year, April 1 to March 31) from INR742.1 million in
the previous year due to poor cotton crop. However, operating
margin improved marginally to 3.8 percent from 3.2 percent due to
low raw material costs. Operating performance is likely to remain
susceptible to availability of cotton and its price over the
medium term, while profitability is expected to remain low due to
limited value addition.
Financial risk profile is below average because of modest networth
and high gearing of INR22.6 million and 3.39 times, respectively,
as on March 31, 2015. Debt protection metrics were average, with
interest coverage and net cash accrual to total debt ratios of
1.62 times and 0.09 time, respectively, in 2014-15. Cash accrual,
though modest, was more than sufficient to meet debt obligation.
Also, bank limit was moderately utilised at about 70 percent over
the 12 months through November 2015. Recent enhancement in bank
line will support liquidity and incremental working capital
requirement over the medium term.
MCPL was incorporated in May 2012 to take over the operations of
proprietorship firm, Mahesh Industries, set up by Mr. Radheshyam
Bhandari in 2005. The company processes raw cotton (kapas) into
cotton bales. It also crushes cotton seed to manufacture cotton
seed cake and oil. The company sells its products in Maharashtra.
MATRIX CERAMIC: ICRA Reaffirms B+ Rating on INR4.50cr Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ for the
INR4.50 crore cash credit facility and the INR1.12 crore term loan
of Matrix Ceramic. ICRA has also reaffirmed the short term rating
of [ICRA]A4 for the INR1.50 crore non fund based facilities of
Matrix Ceramic.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.50 [ICRA]B+ Reaffirmed
Term Loan 1.12 [ICRA]B+ Reaffirmed
Bank Guarantee 1.50 [ICRA]A4 Reaffirmed
The ratings re-affirmation takes into account the firm's moderate
financial risk profile characterized by moderate profitability
levels, low return indicators, average debt coverage indicators
and high working capital intensity. The ratings also remain
constrained by the highly fragmented nature of the tiles industry
which results in intense competitive pressures, the cyclical
nature of the real estate industry which is the main consuming
sector and exposure of profitability of the firm to any increase
in prices of gas which is the major fuel. ICRA also notes that
Matrix Ceramic is a partnership firm and any significant
withdrawals from the capital account could adversely impact its
net worth and thereby its credit profile.
The ratings however continue to favourably factor in the
experience of the promoters in the ceramic industry and the
locational advantage of the firm for raw material procurement by
virtue of its presence in Morbi (Gujarat).
Matrix Ceramic is a partnership firm promoted by Mr. Jayesh Aghara
along with his family members and relatives. Incorporated in 2006,
Matrix Ceramic commenced commercial production of ceramic floor
tiles of 12"x12" dimension in September 2007 with a production
capacity of 6,500 boxes per day. Currently the product profile of
the firm comprises of ceramic wall tiles of size 8"x12" and
ceramic floor tiles of 12"x12" with a production capacity to
manufacture 9,000 boxes of wall tiles or 8000 boxes of floor tiles
per day. Its plant is located at Morbi in Rajkot district of
Gujarat.
Recent Results
For the year ended March 31, 2015, Matrix Ceramic reported an
operating income of INR12.21 crore and profit after tax of INR0.09
crore as against an operating income of INR11.31 crore and net
losses of INR0.10 crore for the year ended March 31, 2014. During
9MFY 16, the firm reported an operating income of INR4.02 crore
and profit before tax of INR0.16 crore.
MELANGE SYSTEMS: ICRA Suspends B+ Rating on INR6.0cr Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR6.00 crore fund based limits and the short term rating of
[ICRA] A4 assigned to the INR16.00 Crore short term fund based
limits of Melange Systems Private Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
MONICA GARMENTS: ICRA Reaffirms 'B' Rating on INR0.52cr Loan
------------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B on the INR0.52
crore (revised from INR0.81 crore) term loan and short-term rating
of [ICRA]A4 on the INR6.07 crore (revised from INR5.59 crore)
short term fund-based loans of Monica Garments. ICRA has also
reaffirmed its short term rating of [ICRA]A4 on INR0.34 crore
(revised from INR0.53 crore) unallocated facilities.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 0.52 [ICRA]B; reaffirmed
Short term loans-
fund based 6.07 [ICRA]A4; reaffirmed
Unallocated 0.34 [ICRA]A4; reaffirmed
ICRA's ratings continue to reflect the high competitive intensity
in the garment industry, subdued demand of the readymade garments
from European markets which is a key destinations for Indian
garment exporter; threat of adverse changes in regulation and
vulnerability of profitability to adverse movements in foreign
exchange. The ratings also take into account the firm's high
client and geographical concentration risk. The ratings factor in
the firm's leveraged capital structure owing to continued
dependence on external borrowings for meeting the working capital
requirements and the low profitability of the business. However,
the ratings positively factor in the extensive experience of
Monica Garments' promoters.
The ability of the firm to increase its scale of operations in a
profitable manner while maintaining the working capital intensity
will be the key rating sensitivity.
Monica Garments is a partnership firm and was established in 1990,
with Mr. Anil Varma and Mr. Virendra Rawat as partners. The firm
primarily manufactures and exports garments for women and caters
to the mid price segment. The majority of the firm's clientele
includes buying houses based in UK and USA. The firm has two
manufacturing facilities located in the National Capital Region at
Okhla and Noida, with a total manufacturing capacity of around
75,000-200,000 pieces per month, depending on the type of garment.
Recent Results
In FY15, Monica Garments reported an Operating Income (OI) of
INR18.01 crore and net profit of INR0.17 crore as compared to OI
of INR19.25 crore and net profit of INR0.77 crore in the previous
year.
MUDRA LIFESTYLE: Ind-Ra Withdraws D Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the
'IND D(suspended)' Long-Term Issuer Rating on Mudra Lifestyle
Limited (MLL). The ratings have been withdrawn due to lack of
adequate information. Ind-Ra will no longer provide ratings or
analytical coverage for MLL.
Ind-Ra suspended MLL's ratings on June 12, 2014.
MLL's ratings:
-- Long-Term Issuer Rating: 'IND D(suspended)'; rating
withdrawn
-- INR1,638 mil. long-term loan I: 'IND C(suspended)' ; rating
withdrawn
-- INR290 mil. long-term loan II: 'IND D(suspended)' ; rating
withdrawn
-- INR455 mil. short-term loan: 'IND D(suspended)' ; rating
withdrawn
-- INR1,280 mil. cash credit limits: 'IND C(suspended)' ;
rating withdrawn
-- INR400 mil. non-fund-based limit 'IND D(suspended)';
rating withdrawn
NAGREEKA BRIJ: CRISIL Reaffirms 'B' Rating on INR78.7MM LT Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Nagreeka Brij
Hotels Vadodara Private Limited (NBHV) continue to reflect the
company's small scale and initial stage of its operations,and
expected weak liquidity because of low cash accrual against
sizeable maturing term debt.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 78.7 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 21.3 CRISIL B/Stable (Reaffirmed)
The rating also factors in a weak financial risk profile because
of a modest net worth, high gearing, and subdued debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of the company's promoters in the hospitality
industry, and their funding support.
For arriving at the rating, CRISIL has treated a non-interest-
bearing unsecured loan of INR81.8 million from the company's
promoters in 2014-15 (refers to financial year, April 1 to March
31) as neither debt nor equity. This is because the amount is
expected to remain in the business over the medium term.
Outlook: Stable
CRISIL believes NBHV will continue to benefit over the medium term
from the extensive industry experience of its promoters and their
funding support. The outlook may be revised to 'Positive' if the
financial risk profile, especially liquidity, improves, most
likely because of large cash accrual and timely funding support
from promoters. Conversely, the outlook may be revised to
'Negative' if the financial risk profile, particularly liquidity,
weakens on account of low cash accrual, inadequate funding support
from promoters, or any large debt-funded capital expenditure.
Incorporated in 2012, NBHV owns and operates a four-star, 42-room
boutique hotel in Vadodara,Gujarat. The company is an equal joint
venture between the Delhi-based Clarks group and the Kolkata-based
Nagreeka group. The hotel operates under the brand name: 1589
Generation X Hotel - Member of Clarks Collection. It began
operations in November 2013.
NILADREE BUILD-TECH: CRISIL Reaffirms B Rating on INR162MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Niladree Build-Tech
Private Limited (NBTPL) continue to reflect NBTPL's small scale of
operations, geographical and segmental concentration in revenue
profile, below-average financial risk profile characterised by
small networth and weak debt protection metrics and stretched
liquidity. These weaknesses are mitigated by the promoters'
extensive experience in the hospitality sector, and the location
of its hotels.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6 CRISIL B/Stable (Reaffirmed)
Letter of credit
& Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Term Loan 162 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes NBTPL's business risk profile will be supported by
its management's experience in the hospitality and real estate
sectors. The outlook may be revised to 'Positive' if the occupancy
rates at, and cash accrual from, the hotels are sizeable.
Conversely, the outlook may be revised to 'Negative' if financial
risk profile weakens with any time or cost overruns in the hotel
projects.
Incorporated in 2009, NBTPL is developing a hotel in Puri (Odisha)
named Niladree Deluxe and is already operating two hotels named
Niladree East and West Towers and another hotel on lease, Blue
Lilly. The company is promoted by Mr. Nilkantha Mohapatra and his
family members.
ORACLE HOME: CRISIL Cuts Rating on INR251.6MM Loan to 'D'
---------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Oracle Home Textile Limited (Oracle) to 'CRISIL D/CRISIL D' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase- 37.5 CRISIL D (Downgraded
Discounting Facility from 'CRISIL A4+')
Cash Credit 20.0 CRISIL D (Downgraded
from 'CRISIL BB-/Stable')
Letter of Credit 40.0 CRISIL D (Downgraded from
'CRISIL A4+')
Packing Credit 224.5 CRISIL D (Downgraded from
'CRISIL A4+')
Post Shipment Credit 71.0 CRISIL D (Downgraded from
'CRISIL A4+')
Standby Export 67.0 CRISIL D (Downgraded from
Packing Credit 'CRISIL A4+')
Term Loan 251.6 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects instances of delay by Oracle in servicing
its debt; the delays have been mainly because of weak liquidity,
driven by a stretched working capital cycle.
There have been delays in debtor realisations, with debtors of
more than 200 days as on September 30, 2015; of this, over 50 per
cent were outstanding for over six months. As a result, the
company's working capital limit has remained fully utilised and
even overdrawn on several occasions. CRISIL expects its liquidity
to remain weak over the medium term.
The company also has a modest scale of operations in the highly
competitive and fragmented textile industry, and large working
capital requirement. However, Oracle benefits from its promoters'
extensive industry experience.
Oracle was originally set up in 1992 by Mr. Sanjay Dave and Ms.
Shilpa Dave as a partnership firm, Oracle Exports; this firm was
reconstituted as a closely held public limited company under the
current name in August 2011. The company exports 75 per cent of
its output of terry towels and home textiles to makers of leading
global brands such as Esprit, Hollister, Kmart, and Tommy
Hilfiger; the balance 25 per cent is sold in the domestic market.
Oracle has a diverse customer base across different geographies,
including the US, Europe, Australia, the Middle East, and Africa.
The company is among the leading manufacturers of terry towels in
the jacquard segment in India. It has vertically integrated
operations, comprising weaving, yarn and fabric dyeing, and
finishing facilities.
PACIFIC HARISH: CRISIL Suspends 'D' Rating on INR36MM Loan
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Pacific
Harish Industries Limited (PHIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL D
Letter of Credit 36 CRISIL D
Proposed Long Term
Bank Loan Facility 3.3 CRISIL D
Term Loan 15.7 CRISIL D
The suspension of ratings is on account of non-cooperation by PHIL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PHIL is yet to
provide adequate information to enable CRISIL to assess PHIL'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'.
PHIL, incorporated in 1999, is promoted by Mr. Kirti Gandhi and
his son Mr. Sandeep Gandhi. It operates two divisions: non-woven
fabric and regenerated polyester fibre. The non-woven fabric
division manufactures automotive textiles and technical textiles.
The regenerated polyester fibre division manufactures and exports
recycled polyester staple, siliconised, and non-siliconised fibre.
The non-woven fabric division has its manufacturing unit in
Umergaon (Gujarat), while the regenerated polyester fibre division
has its unit in Igatpuri (Maharashtra). PHIL has its registered
office in Mumbai.
PG ASSOCIATES: CRISIL Suspends 'B' Rating on INR55MM LT Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
PG Associates Private Limited (PGAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Letter of Credit 95 CRISIL A4
Proposed Long Term
Bank Loan Facility 55 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by
PGAPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PGAPL is yet to
provide adequate information to enable CRISIL to assess PGAPL'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'.
PGAPL, incorporated in 1997, is managed by Mr. Narayan Patel and
his family. The company trades in timber and plywood, and also in
ceiling tiles and gypsum boards.
PONMANI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR57.5MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ponmani Industries (PI)
continues to reflect PI's modest scale of operations and customer
concentration. These rating weaknesses are partially offset by the
extensive industry experience of PI's proprietor and its above-
average financial risk profile, marked by a healthy capital
structure.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 12.5 CRISIL A4 (Reaffirmed)
Cash Credit 57.5 CRISIL B+/Stable (Reaffirmed)
CRISIL had earlier reaffirmed the ratings on the bank facilities
of Ponmani Industries at CRISIL B+/Stable/CRISIL A4 on
December 24, 2015.
Outlook: Stable
CRISIL believes that PI will continue to benefit from its
proprietor's extensive industry experience over the medium term.
The outlook may be revised to 'Positive' in case PI scales up its
operations significantly while diversifying its customer profile
and maintaining its financial risk profile, leading to a
substantial increase in its cash accruals. Conversely, the outlook
may be revised to 'Negative' if there is a decline in orders from
the Tamil Nadu government, or deterioration in PI's working
capital management, or if the firm undertakes a larger-than-
expected debt-funded capital expenditure (capex) programme,
weakening its financial risk profile.
PI, set up in 1985, is a sole proprietorship concern that
manufactures and supplies table-top wet grinders, primarily to the
Tamil Nadu government. Its day-to-day operations are managed by
its proprietor, Mr. P Kumaresan.
PI reported a net profit of INR4.82 million on sales of INR225.9
million for 2014-15 (refers to financial year, April 1 to
March 31), as against a PAT of INR25 million on net sales of
INR442.7 million for 2013-14.
POSITIVE FLEXO: CRISIL Suspends 'D' Rating on INR45MM Term Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Positive
Flexo Pack Private Limited (PFPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D
Term Loan 45 CRISIL D
The suspension of rating is on account of non-cooperation by PFPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PFPL is yet to
provide adequate information to enable CRISIL to assess PFPL'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'.
PFPL, incorporated in July 2011, is promoted by the Hyderabad
(Andhra Pradesh)-based Agarwal family. It is engaged in the
printing and lamination business and also manufactures plastic
films. Mr. Pranay Agarwal and his uncle Mr. Surender Kumar Agarwal
look after the company's day-to-day business operations. PFPL's
registered office is in Hyderabad.
R.V.R. TECHNOLOGIES: Ind-Ra Raises Long-Term Issuer Rating to B-
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded R.V.R.
Technologies Limited's (RVR) Long-Term Issuer Rating to 'IND B-'
from 'IND D'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects RVR's timely debt servicing for the six
months ended December 2015. However, the liquidity position of
the firm continues to be tight as reflected in its near-full use
of the fund-based working capital facilities over the 12 months
ended December 2015.
The ratings remain constrained by RVR's small scale of operations
(FY15: INR453 mil.; FY14: INR362 mil.) and a long working capital
cycle (127 days; 123 days). Credit metrics have remained weak with
gross interest coverage and net financial leverage for FY15 at
1.5x (FY14: 1.7x) and 6.9x (7.1x), respectively.
The ratings, however, derive strength from over four decades of
experience of RVR's promoters in the tube and tyre industry and
the company's 32-year long operational history.
RATING SENSITIVITIES
An improvement in the credit profile along with a sustained
improvement in the liquidity could lead to a positive rating
action.
COMPANY PROFILE
Based in Bhopal, RVR was incorporated in 1984. It manufactures
all kinds of bicycle tubes and tyres for domestic and
international markets. It has an installed capacity of 11 million
tubes per annum. The company has three plants - jointed tube
plant, autoclave tube plant and mixing plant - spread over an area
of 45 acres in Bhopal. RVR has a diversified product portfolio
with over 100 varieties of tubes including puncture resistant
tubes, tubes with chaffer, foldable tubes, skin wall tubes, multi-
colored tubes, ozone resistant tubes, and natural and butyl rubber
tubes.
Total debt outstanding on March 31, 2015, was INR184.01 mil.,
comprising long-term loans of INR 58.12 mil., working capital debt
of INR54.38 mil. and unsecured debt of INR71.51 mil.
RVR's ratings:
-- Long-Term Issuer Rating: upgraded to 'IND B-' from 'IND D';
Outlook Stable
-- INR10 mil. long-term loans (reduced from INR27.3 mil.):
upgraded to 'IND B-'/Stable from 'IND D'
-- INR45 mil. fund-based limits (increased from INR30 mil.):
upgraded to 'IND B-'/Stable from 'IND C'
-- INR10 mil. non-fund-based limits: affirmed at Short-term
'IND A4'
RADHA KRISHNA: ICRA Suspends B+ Rating on INR4cr Cash Loan
----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to INR4 crore cash
credit, INR1.13 crore term loans and INR0.25 crore bank guarantee
facilities of Radha Krishna Firayalal & Co. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
RAM DEV: ICRA Suspends 'D' Rating on INR161.87cr Loan
-----------------------------------------------------
ICRA has downgraded its [ICRA]BBB- rating with Stable outlook for
INR193.37 crore fund based limits (including unallocated) and
[ICRA]A3 rating for INR136.63 crore export packing credit limits
of Ram Dev International Limited to [ICRA]D. The rating continues
to remain suspended.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 161.87 [ICRA]D: Suspended
Standby Line of
Credit 15.50 [ICRA]D: Suspended
Term Loans 15.39 [ICRA]D: Suspended
Unallocated Limits 0.61 [ICRA]D: Suspended
Export Packing
Credit 136.63 [ICRA]D: Suspended
The revision in rating follows delays in debt servicing by RDIL.
RRV INFRA: CRISIL Suspends 'D' Rating on INR150MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
RRV Infra Private Limited (RRV).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 70 CRISIL D
Cash Credit 150 CRISIL D
Letter of Credit 30 CRISIL D
The suspension of ratings is on account of non-cooperation by RRV
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RRV is yet to
provide adequate information to enable CRISIL to assess RRV'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 2002 and promoted by Mr. Rajendra Verma and Mr. R
Ravi Varma, RIPL (formerly, RRV Constructions Ltd) undertakes
execution of turnkey projects, and industrial internal and
external electrification.
SAICON TILES: CRISIL Reaffirms 'B' Rating on INR52.5MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Saicon Tiles Private
Limited (STPL) continue to reflect STPL's nascent and modest scale
of operations in the highly competitive ceramics industry. These
rating weaknesses are partially offset by promoters' extensive
industry experience and proximity of manufacturing facilities to
raw material and labour sources.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 25 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 42.5 CRISIL B/Stable (Reaffirmed)
Term Loan 52.5 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes STPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of higher-than-expected sales,
leading to substantial cash accrual, or improved working capital
cycle. Conversely, the outlook may be revised to 'Negative' in
case of lower-than expected accrual due to reduced order flow or
profitability, or weakening of financial risk profile because of
stretch in working capital cycle or larger-than-expected debt-
funded capital expenditure (capex).
Update
STPL's revenue is expected to be modest, at INR90-100 million in
2015-16 (refers to financial year, April 1 to March 31). Operating
profitability is expected to be adequate, at 16-17 percent, in
line with that of peers. Working capital requirement will remain
large, with gross current assets expected at 120-130 days over the
medium term. Bank limit utilisation averaged 83 percent over the
12 months through December 2015. Financial risk profile is
expected to remain healthy because of comfortable debt protection
metrics. However, gearing will be high, at 2 times as on March 31,
2016, on account of debt contracted to fund recent capex.
STPL, incorporated in 2013, is promoted by the Morbi (Gujarat)-
based Mr. Kamlesh Patel, Mr. Prakashkumar Dalsaniya, Mr. Jagdish
Dadhaniya, Mr. Pravinbhai Dalsaniya, and Mr. Hareshbhai Sershiya.
The company manufactures wall tiles at its facilities in Morbi. It
commenced commercial operations in July 2014.
STPL reported net loss of INR8.7 million on net sale of INR44.5
million for 2014-15.
SAMAYA STRUCTURES: ICRA Suspends 'B' Rating on INR10cr Loan
-----------------------------------------------------------
ICRA has suspended the [ICRA]B rating assigned to the INR10.00
crore bank facilities of Samaya Structures. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
SANT VALVES: CRISIL Assigns B+ Rating to INR65MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sant Valves Private Limited (SVPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 4 CRISIL B+/Stable
SME Credit 2.5 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 26 CRISIL B+/Stable
Bank Guarantee 2.5 CRISIL A4
Cash Credit 65 CRISIL B+/Stable
The ratings reflect the company's working capital-intensive nature
of operations and average financial risk profile because of high
gearing and average debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
SVPL's promoters in the valve manufacturing industry, and the
company's moderate scale of operations with an established client
base.
Outlook: Stable
CRISIL believes SVPL will continue to benefit over the medium term
from its established market position, and the extensive experience
of its promoters, in the valve manufacturing industry. The outlook
may be revised to 'Positive' in case of significant increase in
revenue coupled with improvement in net cash accrual, debt
protection metrics, and working capital management. Conversely,
the outlook may be revised to 'Negative' in case of lower-than-
expected revenue or margins, a stretched working capital cycle, or
substantial debt-funded capital expenditure, leading to
deterioration in the financial risk profile.
SVPL, incorporated in 1992 and promoted by the Himachal Pradesh-
based Dhumal and Rathore families, manufactures different types of
industrial valves and cocks. These products are used by various
industries such as pipes and fittings, power, steel, oil and gas,
cloth mills and chemical. The company's manufacturing facility is
at Jalandhar, Punjab.
Profit after tax was INR6.7 million on net sales of INR402.5
million in 2014-15 (refers to financial year, April 1 to
March 31), against a PAT of INR6.3 million on net sales of
INR400.3 million in 2013-14.
SHIMLA TOLLS: ICRA Suspends B+ Rating on INR32cr Term Loan
----------------------------------------------------------
ICRA has suspended [ICRA] B+ rating assigned to the INR32 crore
Term Loans of Shimla Tolls and Projects Pvt. Ltd. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
SHIRAJ TIMBER: CRISIL Reaffirms B- Rating on INR255MM Cash Loan
---------------------------------------------------------------
CRISIL rating on bank facilities of Shiraj Timber Traders (STT)
continues to reflect STT's weak financial risk profile, marked by
a modest net worth and subdued debt protection metrics, working-
capital-intensive operations, and modest scale of operations in
the intensely competitive timber industry. These rating weaknesses
are partially offset by the extensive experience of STT's
promoters in the timber trading business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 255 CRISIL B-/Stable (Reaffirmed)
Letter of Credit 145 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that STT will continue to benefit over the medium
term from its promoters' extensive experience in the timber
trading industry. The outlook may be revised to 'Positive' in case
the firm significantly grows its revenues, while maintaining its
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' in case STT reports a steep decline in
its revenues or deterioration in its financial risk profile,
because of lengthening of its operating cycle, or deterioration in
its capital structure.
STT, set up in 1985, trades in timber. The firm mainly imports
teakwood and hardwood from countries across West Africa and South
America. STT was set up as a partnership firm by Mr. Shirajul-
Haque Mohammad and his brothers Mr. Maroof Mohammad and Mr. Salim
Mohammad. STT's administrative office is at Mumbai (Maharashtra).
SHIV TRADERS: CRISIL Suspends 'B' Rating on INR55MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of M/s. Shiv
Traders - Anjangaon (ST).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by ST
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ST is yet to
provide adequate information to enable CRISIL to assess ST'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'
ST was set up in 1996 as a proprietorship firm by Mr. Sudhakar
Kakad. The firm was engaged in the trading of raw cotton, yarn,
and cotton seeds. Currently, however, the firm is trading only in
raw cotton. ST procures majority of its cotton from cotton ginners
in Maharashtra apart from a few ginners spread all over India.
SHREE KRISHNA: Ind-Ra Affirms BB+ Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shree Krishna
Steels' (SKS) Long-Term Issuer Rating at 'IND BB+'. The Outlook
is Stable. The agency has also affirmed SKS' INR803 mil. non-
fund-based facility (increased from INR550m) at
'IND BB+'/Stable/'IND A4+'.
The non-fund-based facility includes an INR110 mil. cash credit
facility, an INR80 mil. bills discounting facility and an
INR120 mil. buyer's credit facility as sub limits.
KEY RATING DRIVERS
The ratings remain constrained by SKS' weaker-than-expected credit
profile in FY15 on account of a fall in EBITDA margins to 0.9%
(FY14: 2.0%) due to lower realisations as well as forex losses.
Net interest cover (EBITDA/net interest expense) declined to 1.15x
in FY15 (FY14: 1.86x) while net leverage (Net debt/EBITDA) stayed
negative due to the firm's net cash position. Revenue grew 27.4%
yoy to INR1,645m in FY15.
The ratings also factor in the partnership form of organization.
The ratings are supported by SKS' continued strong liquidity
profile with cash and liquid investments in the form of fixed
deposits of INR78.0 mil. at FYE15 (FYE14: INR96.0 mil.).
Moreover, the firm generates regular interest income (FY15:
INR12.6 mil., FY14: INR11.0 mil.) on the deposits, which is used
to pay 90-180 days usance letters of credit for bulk purchases of
steel. Ind-Ra expects SKS to maintain these fixed deposits along
with sustained interest income in the near term. The agency also
expects SKS to maintain a low to negative working capital cycle.
The ratings also continue to be supported by SKS' over three
decades of track record and promoter's experience in the steel
trading business. Furthermore, the partners have been infusing
funds into the business in the form of unsecured loans (100% of
total debt at FYE15) so that SKC has least dependence on bank
debts.
RATING SENSITIVITIES
Negative: A significant decline in revenue or EBITDA margins
and/or weakening of the liquidity profile leading to deterioration
in the credit metrics could result in a negative rating action.
Positive: A significant improvement in scale of operations while
improving profitability and maintaining liquidity at current or
improved levels could lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1980, SKS is a partnership firm engaged in the
trading of flat steel products such as hot rolled coils. The
total debt outstanding on March 31, 2015, was INR65 mil.,
comprising only unsecured debt. For 1HFY16, SKS reported revenue
of INR996 mil. and EBITDA margin of 2.4%.
SHREE MAHAVIR: CRISIL Suspends 'D' Rating on INR50MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Shree
Mahavir Roll-Tech Limited (SMRL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3 CRISIL D
Cash Credit 50 CRISIL D
Term Loan 32.8 CRISIL D
The suspension of ratings is on account of non-cooperation by SMRL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SMRL is yet to
provide adequate information to enable CRISIL to assess SMRL'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 2010, SMRL is promoted by the Surat (Gujarat)-
based Mr. Vipul Shah and Mr. Pradeep Kumar Biravat. The company
manufactures thermo-mechanically treated bars; its production
facilities are in Surat.
SHRI SAI: CRISIL Suspends B+ Rating on INR50MM Bank Loan
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Shri Sai Marketing and Trading Co. (SSMTC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4
Cash Credit 25 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by Code
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Code is yet to
provide adequate information to enable CRISIL to assess Code's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Set up in 2005 by Mr. Sunil Devkinandan Zawar, SSMTC is a Jalgaon
(Maharashtra)-based proprietorship firm providing multiple
services for government authorities. Currently, the firm caters to
primary and secondary schools in five major districts of
Maharashtra'Jalgaon, Thane, Raigad, Ratnagiri, and
Sindhudurg'under the Mid-dayMal Program. The firm has a contract
with the Maharashtra Cooperative and Consumer and Marketing
Federation (undertaking of the Government of Maharashtra) for this
purpose.
The firm has also entered into a contract with Rajasthan State
Transport Corporation for carriage of parcels, courier, and allied
services through state-run buses.
SHRI SHANKER: ICRA Reaffirms 'B' Rating on INR28.91cr LT Loan
-------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B on the
INR28.91 crore fund based bank facilities of Shri Shanker Gauri
Agro Product Private Limited. ICRA has also reaffirmed its short
term rating of [ICRA]A4 on the INR0.81 crore unallocated bank
facilities of SGPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund-
Based Limits 28.91 [ICRA]B; reaffirmed
Short-Term
Unallocated Limits 0.81 [ICRA]A4; reaffirmed
The rating reaffirmation takes into account the high intensity of
competition in the rice milling industry and agro climatic risks
which can affect the availability of paddy in adverse weather
conditions. The rating also notes the low profitability margins
and consistently low utilization of the installed milling
capacity. Further, the rating is also constrained by high gearing
level arising out of substantial debt funding of large working
capital requirements along with weak coverage indicators. The
rating however, favorably takes into account the robust growth in
the revenues in the last few years, extensive experience of the
promoters in the industry and proximity of the mill to major rice
growing area which results in easy availability of paddy.
Going forward, the ability of the company to achieve healthy
growth in the revenue, improvement in the profitability level, and
sustained improvement in the coverage indicators will be the key
rating areas.
Business was established in 1973 by Mr. Radheshyam Maheshwari by
the name of Shanker Udyog. However, in 2004 it was converted into
a private limited company with the name Shri Shanker Gauri Agro
Product Private Limited. Mr. S.N. Maheshwari and Mrs. Seema
Maheshwari are the managing directors of the company. SGPL is
engaged in processing and trading of basmati rice, poha, wheat
Dalia and pulses. It has a milling capacity of 4 tonnes per hour
of paddy for production of sella basmati rice. Head office and
factory of the company is located at Nainwa road, Bundi Rajasthan.
Recent Results
SGPL reported a net profit of INR0.30 crore on an operating income
of INR96.01 crore for 2014-15, as against a net profit of INR0.45
crore on an operating income of INR93.41 crore for the previous
year.
SHUKRANA IMPEX: Ind-Ra Assigns B+ Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shukrana Impex
Private Limited (SIPL) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable. The agency has also assigned SPPL's INR50 mil.
working capital facility 'IND B+'/Stable/'IND A4' ratings.
KEY RATING DRIVERS
The ratings factor in SIPL's weak credit profile as depicted by
its interest coverage (operating EBITDA/gross interest expense) of
1.64x in FY15 (FY14: 1.91x) and financial leverage (adjusted net
debt/operating EBITDAR) of 5.81x (6.05x). The ratings further
factor in the small scale of operations of the company as evident
from its revenue size of INR367.16 mil. in FY15 (FY14: INR183.66
mil.).
However, the ratings are supported by SIPL's promoter's experience
of more than two decades in the textile industry.
RATING SENSITIVITIES
Negative: Any deterioration in the credit metrics of the company
will be negative for the ratings.
Positive: Substantial growth in the revenue with improvement in
the profitability leading to a sustained improvement in the credit
metrics will lead to a positive rating action.
COMPANY PROFILE
Incorporated in 2008, SIPL manufactures garments at its plant in
Gurgaon and exports them mainly to Dubai, South Africa, Germany.
SOMOCHEM INDIA: CRISIL Assigns B+ Rating to INR35MM Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Somochem India Private Limited (SIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Letter of Credit 10 CRISIL A4
Foreign Bill Purchase 35 CRISIL A4
Cash Credit/Overdraft
facility 10 CRISIL B+/Stable
Export Packing Credit 25 CRISIL A4
The ratings reflect SIPL's modest scale and working capital
intensive nature of operations. The rating also factors in the
below average financial risk profile marked by modest net worth
and subdued debt protection metrics. These rating weaknesses are
partially offset by SIPL's promoters' extensive experience in
various businesses.
Outlook: Stable
CRISIL believes that SIPL will continue to benefit from the
promoters' extensive experience. The outlook may be revised to
'Positive', if the company reports significant and sustained
increase in revenues and profitability, while improving its
financial risk profile and receivable collection. Conversely, the
outlook may be revised to 'Negative', if SIPL's revenues or
profitability is significantly lowerthanexpectation or in case of
a stretch in working capital requirements, leading to a
deterioration in its financial risk profile, particularly
liquidity.
Incorporated in 1996, SIPL is promoted by the Ghana Based Mohinani
Family. The company is engaged in exports of electrical
equipments, machinery arts, adhesives among others. SIPL is based
out of Mumbai. The company is promoted by the Mr. Ramchand
Mohinani and Mr. Sunil Mohinani and is managed by professionals.
Financials: SIPL reported a profit after tax (PAT) of INR4.0
million on net sales of INR264.6 million for 2014-15 (refers to
financial year, April 1 to March 31), as against a PAT of INR8.7
million on net sales of INR273.2 million for 2013-14.
SOUTH EAST: Ind-Ra Lowers Rating on INR37.13BB Loans to BB-
-----------------------------------------------------------
India Ratings and Research has downgraded South East U.P. Power
Transmission Company Limited's (SEUPPTCL) INR37.13 bil. senior
project bank loans to 'IND BB-' from 'IND BBB'. The Outlook is
Negative.
KEY RATING DRIVERS
The downgrade reflects a substantial delay in SEUPPTCL's project
beyond the scheduled commercial operation date (SCOD) of Aug. 31,
2015, due to which the cost has increased by around 17%. The cost
overrun, contributed by an increase in interest during
construction and contractual costs, could stress the cash flow as
the revenue stream is fixed, which reflects the Negative Outlook.
The project has been divided into two phases. SEUPPTCL expects to
commission the first phase and second phase by March/April 2016
and August 2016, respectively. The project might have to make a
penalty payment to the distribution utilities of Uttar Pradesh due
to completion delays since the concession grantor Uttar Pradesh
Power Transmission Corporation Limited (UPPTCL) has not approved
the extension in project completion date. Also, the project is
yet to receive approvals from lenders for the extension of SCOD or
for the cost overrun, which are crucial factors for further rating
actions.
The land required for substations is in possession and few
transmission elements in the first phase have already been
commissioned. However, construction risk remains since a major
portion of the project is still under progress. The engineering,
procurement and construction (EPC) is undertaken by Isolux Corsan
India Engineering & Constructions Private Limited
('IND BBB+'/Stable) while C&C Construction Company Limited, a
joint venture partner in the original EPC contract for the
project, has exited.
Despite the developer (Grupo Isolux Corsan (Fitch Ratings Ltd.
'B'/Rating Watch Negative)) having significant experience in the
infrastructure sector, the deterioration in its credit profile
places uncertainty over the undertaking to bridge any deficit in
cost overruns during the construction stage.
The price risk is reasonably mitigated through the regulatory
tariff mechanism where the Uttar Pradesh Electricity Regulatory
Commission has approved the pre-determined tariffs for this
project. The four distribution companies in Uttar Pradesh will
make payments to SEUPPTCL contingent on the network availability.
Weak counterparty profile remains a constraint for the project.
Ind-Ra considers that transmission projects after commissioning
have a relatively lower risk, given that generally these projects
achieve 98% availability. The equipment and technology being used
are proven ones and widely utilized in India.
RATING SENSITIVITIES
Positive: A revised project structure including financing plan and
related approvals could lead to a positive rating action.
Negative: Delays in the commencement of the first phase, the non-
approval of extension in commercial operation date by UPPTCL and
absent sponsor support could lead to a negative rating action.
COMPANY PROFILE
SEUPPTCL was incorporated on 11 September 2009. It has signed a
transmission service agreement with the four discoms in Uttar
Pradesh to erect, commission and operate 765 kV S/C Mainpuri- Bara
Line with 765 kV/400 kV in Mainpuri. The transmission network is
around 1,600km in length with five substations. SEUPPTCL is a
wholly owned subsidiary of Mainpuri Power Transmission Private
Limited. The project has been undertaken to evacuate the power to
be generated from a few thermal power plants and to improve the
reliability and quality of supply. Disbursement at end-October
2015 was INR23.49 bil., around 63% of sanctioned amount of
INR37.13 bil.
SRI BHASKAR: Ind-Ra Affirms B+ Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sri Bhaskar
Contractors Company's (SBCC) Long-Term Issuer Rating at 'IND B+'.
The Outlook is Stable.
KEY RATING DRIVERS
The ratings continue to reflect SBCC's tight liquidity position
resulting into the overuse of the working capital limits over the
six months ended December 2015. The ratings are constrained by
SBCC's partnership nature of organization structure. The ratings
are further constrained by the small order book size of
INR275 mil. along with high geographical concentration as the
firm's operations are restricted to Andhra Pradesh and Telangana.
The ratings are supported by the firm's over 10 years of
experience in the business of civil construction.
RATING SENSITIVITIES
Positive: An improvement in the liquidity position could lead to a
positive rating action.
Negative: Further deterioration in the liquidity position could
lead to a negative rating action.
COMPANY PROFILE
SBCC was established in 1996. The firm is a civil contractor and
executes work orders in Andhra Pradesh and Telangana. Mostly, the
firm executes work orders issued by Public Works Department.
SBC ratings:
-- Long-Term Issuer Rating: affirmed at 'IND B+'/Stable
-- INR40 mil. fund-based working capital limits: affirmed at
'IND B+'/Stable
-- INR105 mil. (increased from INR85m) non-fund-based working
capital limits: affirmed at 'IND A4'
SRI LAXMI: ICRA Suspends B+/A4 Rating on INR9.0cr Loan
------------------------------------------------------
ICRA has suspended [ICRA]B+/[ICRA]A4 ratings assigned to the
INR9.00 crore fund based facilities of Sri Laxmi Narasimha
Industries. 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.
SURYODAYA EDIBLES: CRISIL Assigns B+ Rating to INR50MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facilities of Suryodaya Edibles(India) Private Limited
(SEPL). The rating reflects SEPL's below-average financial risk
profile because of small networth and high gearing.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 5.4 CRISIL B+/Stable
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 34.6 CRISIL B+/Stable
The rating also reflects the company's low operating margin and
its susceptibility to volatility in raw material prices. These
weaknesses are partially offset by the extensive industry
experience of the promoters and efficient working capital
management.
Outlook: Stable
CRISIL believes SEPL 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 a substantial and
sustained increase in operating income and cash accrual along with
continued efficient working capital management or if the promoters
infuse substantial capital leading to significant improvement in
the financial risk profile. Conversely, the outlook may be revised
to 'Negative' in case of substantially low operating income and
accrual, stretch in the working capital cycle, or if SEPL
undertakes any large, debt-funded capital expenditure programme
leading to deterioration in the financial risk profile,
particularly liquidity.
SEPL, incorporated in 2008, processes dal, particularly red
lentil. The company's processing unit is located in Jalan Complex,
Howrah (West Bengal). Mr. Ramesh Chandra Gupta and Mr. Prakash
Chandra Agarwal are the directors. The operations are primarily
managed by Mr. Ronaq Gupta.
SUVILAS PROPERTIES: CRISIL Reaffirms B Rating on INR350MM Loan
--------------------------------------------------------------
CRISIL's rating on the long term bank facility of Suvilas
Properties Pvt. Ltd. (SPPL) continues to reflect SPPL's exposure
to risks related to completion and salability of its ongoing
project and its susceptibility to risks inherent in the real
estate industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Project Loan 350 CRISIL B/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of SPPL's promoters in the real estate development
business.
CRISIL had downgraded its rating on the long term bank facilities
of SPPL to CRISIL B/Stable from CRISIL B+/Stable through its
rating rationale dated January 18, 2016. The downgrade reflected
pressure on SPPL's liquidity resulting from escalation in project
cost and lower than expected booking. The cost of construction got
escalated to INR1327 million from INR815 million due change in
project specification and prices of material. This increase is
funded by INR100 million of additional term loan and balance
through own funds and customer advance. The liquidity was also
under pressure due to slow execution of project and lower than
expected booking.
Outlook: Stable
CRISIL believes that SPPL will benefit over the medium term from
its promoters' experience in the real estate development business.
The outlook may be revised to 'Positive' if SPPL completes its
projects early or generates more sales from ongoing projects,
leading to substantially large cash flows. Conversely, the outlook
may be revised to 'Negative' if there are any delays in the
execution of the project or in the receipt of advances from
customers, or if it undertakes a large, debt-funded project,
impacting its financial risk profile.
SPPL is a Bengaluru (Karnataka)-based real estate Development
Company incorporated in 2012. Its day-to-day operations are
managed by the managing director Mr. Sunil Chowdary.
TBPR INFRA: ICRA Lowers Rating on INR24.50cr Loan to 'D'
--------------------------------------------------------
ICRA has revised the long term rating assigned to INR7.00 crore
fund based limits, INR24.50 crore non fund based limits and
INR2.50 crore unallocated limits of TBPR Infra Projects Private
Limited to [ICRA]D from [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 7.00 Revised to [ICRA]D
Non fund based limits 24.50 Revised to [ICRA]D
Unallocated Limits 2.50 Revised to [ICRA]D
The rating revision primarily takes into account the invocation of
bank guarantee by Engineering Projects India Limited (EPIL) on
account of delay in execution of projects. The rating is further
constrained by TIPPL's moderate scale of operation in civil
construction industry; its weak financial profile characterized by
moderate profitability, high TOL/TNW of 1.47 times as on
March 31, 2015, moderate coverage indicators and stretched
liquidity position as reflected by high utilization of fund based
limits owing to stretched receivables. This apart, the rating is
further constrained by company's exposure to customer as well as
geographical concentration risks with top five customers are
contributing ~77% of its unexecuted order book located in Andhra
Pradesh and Telangana region. The rating however favorably factors
in long experience of promoters in civil construction industry and
healthy order book of INR120.37 crore (as on
March 31, 2015) which provides revenue visibility in the medium
term.
Going forward, the company's ability to increase its scale of
operation and improve its profitability while managing its working
capital requirements will be key rating sensitivities from credit
perspective.
Incorporated in the year 2007 by Mr. Bhanu Prakash Reddy TBPR
Infra Projects Private Limited (TIPPL) is primarily engaged in
execution of irrigation projects like canals, tanks, dams and
barrages etc, which includes undertaking design, civil and
structural works. The company is also involved in execution of
road projects. In the past, TIPPL was primarily executing
irrigation projects as a sub-contractor for companies such as Indu
Projects Limited and Manisha Infrastructure Pvt. Ltd. etc.
However, the company started directly executing projects for
Irrigation and R&B departments of Government of Andhra Pradesh
since FY2013. TIPPL is registered with various governmental
authorities as a contractor. The company has executed government
contracts directly for projects in Adilabad, Hyderabad, Nalgonda,
Nizamabad and Warangal districts of Andhra Pradesh.
Recent Results
TIPPL has reported an operating income of INR51.04 crore and net
profit of INR1.37 crore respectively in FY2015 as against an
operating income and net profit of INR39.88 crore and INR1.36
crore in FY2014.
UNITED ELECTRICALS: ICRA Assigns 'B' Rating to INR2.65cr Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to INR2.35 crore
existing cash credit facility and INR2.65 crore proposed cash
credit facility and a short term rating of [ICRA]A4 to INR3.50
crore of existing bank guarantee, INR26.50 crore proposed bank
guarantee and INR7.00 crore proposed letter of credit of United
Electricals & Engineering Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 2.35 [ICRA]B assigned
Proposed Cash Credit 2.65 [ICRA]B assigned
Bank Guarantee 3.50 [ICRA]A4 assigned
Proposed Bank Guarantee 26.50 [ICRA]A4 assigned
Proposed Letter of Credit 7.00 [ICRA]A4 assigned
The ratings take into consideration the small scale of operations
of the company at present resulting in nominal profit and cash
accruals from the business, high working capital intensive nature
of business owing to stretched receivable period which adversely
impacts the liquidity position of the company as reflected by high
utilisation of the cash credit limits. ICRA also notes the
fragmented and highly competitive nature of the domestic
transformer manufacturing industry which exerts pressure on the
profit margins of small players like UEEPL and the significant
geographical concentration risk with around 75% of the operations
being present in the state of Odisha. The ratings, however, derive
comfort from the experience of the promoters in the transformer
manufacturing industry, reputed clientele with almost entire
revenue generated from government sector and healthy order book
position which is boosted by a contract recently secured from
Odisha Small Industries Corporation Limited (OSIC). ICRA, however,
notes that ability of the company to mobilise resources for
scaling up of the operation would be a key challenge going
forward.
United Electricals & Engineering Private Limited, located in
Odisha, is engaged in the manufacture of both power and
distribution transformers. The company also undertakes projects
pertaining to installation of electrical sub-station. The entity
was set up as a proprietorship firm in 1987 and later in 2004 it
was incorporated as a private limited company. As such, the
promoters of the company have been associated in the field of
transformer manufacturing for more than two decades now. UEEPL
primarily caters to the government sector with nominal presence in
the private sector.
Recent Results
UEEPL reported a net profit of INR0.33 crore during FY15 on an OI
of INR15.66 crore as against a net profit of INR0.55 crore on an
OI of INR21.40 crore during FY14.
VARDHAMAN COLLEGE: ICRA Lowers Rating on INR12cr Loan to B+
-----------------------------------------------------------
ICRA has revised the long-term rating to [ICRA]B+ from [ICRA]BB to
the INR12.00 crore unallocated limits of Vardhaman College of
Engineering.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated limits 12.00 [ICRA]B+ (revised from
[ICRA]BB (Stable))
The revision in rating takes into account deterioration in the
financial profile of the institution with INR3.37 crore net loss
incurred as per audited FY15 financial statement, owing to
significant increase in the employee expenses for FY15. The rating
revision also considers stretched liquidity position of the
company owing to high working capital requirements on account of
delays in receipt of fees from state government. The rating
continues to remain constrained by the small scale of operations
restricting financial flexibility, highly regulated nature of the
higher education industry in terms of fee fixation, seat
additions, etc, where any adverse regulations could impact revenue
growth and profitability. The rating also remains constrained by
the decline in occupancy in AY 2013-14 and 2014-15 with increase
in competition.
The rating however draws comfort from the long standing experience
of VCOE's promoters in the field of education and its established
presence in the education industry. ICRA also draws comfort from
the increasing focus of the government towards improving the
standard of technical education coupled with a large section of
young population opting for engineering courses which is expected
to support revenue growth of the institute.
Going forward, the institution's ability to improve the scale of
operations by improving occupancy levels, improve its
profitability and effectively manage its working capital
requirements with timely receipt of payments from the government
will remain the key rating sensitivities.
Vardhaman College of Engineering was started by Vardhaman
Educational society in the year 1999. Vardhaman Education Society
was incorporated in the year 1989 by 5 members. But in the year
2011, the trust members were revised and currently there are 9
members. Mr. T. Vijender Reddy is the chairman of Vardhaman
Educational Society since 2011. The society is involved in
providing technical education. The college is situated at Kacharam
(Village), Shamshabad (Mandal) Rangareddy Dist, TS - 501218. The
college is spread over an area of 14.6 acres with built-up area of
35332.36 square feet. The institution offers both under-graduate
and post-graduate courses namely B-Tech, M-tech and MBA.
Recent Result
As per audited FY2015 results, the institution recorded an
operating income of INR27.11 crore with a net loss of INR3.37
crore as against net profit of INR0.77 crore on operating income
of INR22.07 crore for FY2014.
VIJAY TEXTILES: Ind-Ra Raises Long-Term Issuer Rating to B+
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Vijay Textiles
Ltd's (VTL) Long-Term Issuer rating to 'IND B+' from 'IND D'. The
Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects VTL's timely debt servicing for the five
months ended December 2015 on cash support from promoters who
injected INR230 mil. in 1HFY16 in the form of an unsecured loan.
However, the liquidity position remains tight due to the negative
cash flow from operations arising from a high interest cost and a
long working capital cycle (FY15: around 800 days; FY14: 738
days). VTL's business requires high inventory in its retail
showrooms. The utilization of the cash credit limit was close to
100% during the five months ending December 2015.
The ratings remain constrained by VTL's weak credit metrics with
net leverage (Ind-Ra adjusted net debt/operating EBITDAR) of 17.9x
in FY15 (FY14: 7.7x) and EBITDA interest coverage was 0.5x (1.1x).
The ratings continue to factor in the high competition in the home
textiles business.
The ratings continue to reflect VTL's long operational track
record of more than two decades in the home textiles business.
The company has a strong retail presence with a wide distributor
network across India and five showrooms in Hyderabad.
RATING SENSITIVITIES
Positive: Substantial growth in the revenue and profitability
resulting in improved credit metrics could result in a positive
rating action.
Negative: A decline in the profitability resulting in
deterioration in the credit metrics could result in a negative
rating action.
COMPANY PROFILE
Incorporated in 1990, VTL has a 15 million meters per annum home
textile printing and embroidery facility in Mahbubnagar district
near Hyderabad.
VTL is a public limited company, listed on the Bombay Stock
Exchange.
According to the provisional results for 1HFY16, revenue was
INR602.8 mil., EBITDA was INR154.0 mil. and interest coverage was
1.5x.
VTL's ratings are:
-- Long-Term Issuer Rating: Upgraded to 'IND B+' from 'IND D';
Outlook Stable
-- INR565.7 mil. fund-based working capital limits: upgraded
to 'IND B+'/Stable/'IND A4' from 'IND D'
-- INR835.8 mil. long-term loans (reduced from INR956.7
mil.): upgraded to 'IND B+'/Stable from 'IND D'
-- INR10.0 mil. non-fund based working capital limits:
upgraded to IND B+'/Stable/'IND A4' from 'IND D'
WEBUILD PRIVATE: CRISIL Assigns B- Rating to INR61.7MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/stable/CRISIL A4' ratings to
the bank facilities of Webuild Private Limited (WPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 13.3 CRISIL B-/Stable
Bank Guarantee 25.0 CRISIL A4
Cash Credit 61.7 CRISIL B-/Stable
The ratings reflect the company's modest scale of operations in
the intensely competitive civil construction industry, large
working capital requirement, and below-average financial risk
profile because of high gearing. These rating weaknesses are
partially offset by the extensive industry experience of the
company's promoters.
Outlook: Stable
CRISIL believes WPL will continue to benefit over the medium term
from the industry experience of its promoters. The outlook may be
revised to Positive' in case of a significant increase in scale of
operations while profitability margins are maintained, resulting
in an improvement in the company's capital structure. Conversely,
the outlook may be revised to 'Negative' if there is a decline in
revenue and margins owing to delay in execution of various
projects, or if working capital management deteriorates resulting
in stretched liquidity, or in case of large, debt-funded capital
expenditure, leading to deterioration in the financial risk
profile.
WPL was incorporated in 1968, promoted by Mr. N Challapam and his
son, Mr. Kamalasanan. Currently, Mr. Kamlasanan, along with his
son Mr. Manu Kamal and family member Mr. K S Sylesh, manages
operations. Mrs. M Sushama (wife of Mr. Kamlasanan) and Mrs. Suja
S S (wife of Mr. Manu Kamal) are other directors of the company.
WPL undertakes construction of roads, bridges, and buildings in
Kerala, largely for government authorities.
WINFAB EQUIPMENTS: CRISIL Assigns 'B' Rating to INR40MM Cash Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Winfab Equipments Private Limited (WEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 5 CRISIL B/Stable
Bank Guarantee 15 CRISIL A4
Cash Credit 40 CRISIL B/Stable
The ratings reflect WEPL's modest scale- and working capital
intensive nature of operations in cylinder manufacturing industry.
The ratings also factor WEPL's weak financial risk profile marked
by small networth, high gearing and weak debt protection metrics
and susceptibility of the company's performance to tender-based
nature of business and customer concentration risk. These rating
weaknesses are partially offset by promoters' extensive industry
experience and established relationship with key customers.
Outlook: Stable
CRISIL believes that WEPL will benefit over the medium term from
its promoter's extensive experience in manufacturing domestic
liquefied petroleum gas (LPG) cylinders. The outlook may be
revised to 'Positive' if the company diversifies its clientele
base while maintaining a steady growth in its revenues and
improving its profitability. Conversely, the outlook may be
revised to 'Negative' in case of a steep decline in its revenue
growth or profitability or higher-than-expected debt funded capex
affecting the financial risk profile.
Incorporated in 2000, WEPL is engaged in manufacturing of LPG
Cylinders and reconditioning of the Gas Cylinders. Managed by Mr.
Nanda Kishore Ladda and Ms. Sheetal Ladda, the company has its
manufacturing facility near Hyderabad in Telangana.
=========
J A P A N
=========
SHARP CORP: Foxconn Founder Appeals to Tokyo Over $5.1BB Bid
------------------------------------------------------------
Kana Inagaki at The Financial Times reports that the takeover
battle over troubled electronics maker Sharp Corp. has intensified
after Terry Gou, founder and chairman of Taiwan's Hon Hai
Precision Industry, made a personal appeal to the Japanese
government and bank officials to take its $5.1 billion offer
seriously.
The FT relates that Mr Gou's visit to Tokyo came as Hon Hai,
better known as Foxconn, seeks to allay concerns about a foreign
takeover of a century-old Japanese company and boost its chances
of beating a rival offer by a government-backed fund.
The deal has been closely watched by overseas investors as a test
case for Japan's openness to foreign businesses and promises to
enhance shareholder returns, the report states.
The JPY600 billion ($5.1 billion) bid submitted by the Apple
supplier last month includes promises to protect jobs and to
shoulder the debt held by Sharp's banks, the FT reports citing
people with knowledge of the offer.
The FT says Foxconn also hopes to convince sceptics by pointing to
its investment in Sharp's flagship liquid crystal display plant in
Sakai, western Japan. Since it took a stake in the plant in 2012,
the facility has achieved a steady growth rate of 3% to 5% for the
past three years in profit, one person with knowledge of its
operations told the FT.
According to the FT, Yasuo Nakane, analyst at Mizuho Securities,
said Foxconn is pursuing Sharp for its advanced display technology
and the company's engineers. The company needs them to support its
plants in China which make Apple's iPhone products.
The FT notes that the chances of the Taiwanese company winning the
bid have been considered slim amid Japanese government worries
about Sharp's technology falling into foreign hands.
The report says critics also question Foxconn's ability to run
such a large company, and have raised concerns about working
conditions. A series of worker suicides drew attention to its
labour practices in 2010, prompting the company to improve factory
conditions, the report recalls.
The FT adds that people familiar with the talks have previously
suggested that Sharp and its lenders were leaning towards an offer
made by the state-backed Innovation Network Corporation of Japan
(INCJ), which is said to be half the level of Foxconn's bid.
But with details of the Taiwanese company's bid in the open,
analysts said it will probably raise the bar for Sharp and its
lenders to justify its preference for the lower bid to
shareholders, the FT notes.
Based in Osaka, Japan, Sharp Corporation (TYO:6753) --
http://sharp-world.com/-- manufactures and sells electronic
telecommunication devices, electronic machines and components.
As reported in Troubled Company Reporter-Asia Pacific on
Nov. 6, 2015, Standard & Poor's Ratings Services said that it has
lowered its long-term corporate credit and debt ratings on Japan-
based electronics company Sharp Corp. to 'CCC+' from 'B-' and its
short-term corporate credit and commercial paper program ratings
on the company to 'C' from 'B'. S&P has also lowered its long-
term corporate credit rating on overseas subsidiary Sharp
International Finance (U.K.) PLC to 'CCC+' and the rating on its
commercial paper program to 'C'. The outlook on the long-term
corporate credit ratings on both companies is negative.
TAKATA CORP: CEO Set to Step Down After Recalls
-----------------------------------------------
Kana Inagaki at The Financial Times reports that Shigehisa Takada,
the reclusive chief executive of Takata Corp, is set to be ousted
as the Japanese car component maker seeks to win financial
assistance from automakers to weather a massive recall crisis.
The FT relates that Mr. Takada, the grandson of the company's
founder, is now open to resigning after he met with executives of
automakers on Jan. 29, according to people familiar with the
matter.
It was not immediately clear when he would resign and whether a
successor has been chosen, the FT says. Takata declined to
comment.
Shares of Takata rose more than 8 per cent on Jan. 29 on reports
of the management overhaul, which boosted hopes for a bailout of
the global supplier of airbags, seat belts and steering wheels,
the FT discloses.
According to the FT, the family scion's decision to step down
comes as Takata faces growing costs to replace tens of millions of
airbag inflators that could explode when kept for a long period in
high-humidity areas. Takata is investigating an 11th death
potentially linked to the defect, the report states.
The report says the recall crisis deepened in mid-January after US
auto safety regulators announced new recalls that could add a
further 5 million airbags to the 23 million already recalled in
the US.
Critical to Takata's survival, analysts said, is an agreement
among auto groups including Honda, Toyota and others to split the
recall costs, which are estimated to reach billions of dollars. A
management overhaul would be inevitable in order to secure
industry-wide assistance, the FT reports citing one of the people
with knowledge of the talks.
Still, the departure of Mr Takada would not be an easy one, the FT
notes. The company has been run by family members since it was
founded in 1933 by Shigehisa's grandfather Takezo. Shigehisa took
over as president in 2007 and assumed the chief executive role in
2013, two years after his father Junichiro passed away.
The FT notes that as safety concerns intensified over the past
year, Mr Takada has been accused of near invisibility by analysts
and investors. At a recent press conference in November, though,
the 49-year-old said he would stay on to navigate the company
through its biggest crisis in 83 years, the report says.
It would be difficult for automakers to allow Takata to go under
given the massive supplies of new inflators required to replace
potentially faulty parts in their vehicles, says the FT.
But relations between Takata and its automakers have clearly
deteriorated as the recall crisis expanded.
Those soured ties were highlighted when Honda, its biggest
customer, announced in November that it would stop using Takata's
airbag inflators and accused the company of manipulating test
results for certain products. Takata did not dispute Honda's
claims, according to the FT.
The FT notes that Takata's equity ratio -- a measure of capital
strength -- remained relatively robust at 29% as of the end of
September. But the amount of cash held had fallen nearly 30% from
the same period the previous year to JPY61.7 billion ($518
million), adds the report.
Its cash position is expected to be strained further as it battles
with lawsuits and works out the proportion of costs that fall to
Takata, the FT states.
For the July to September quarter, Takata posted a net loss of
JPY8.6 billion ($72.2 million) compared with a profit of JPY3.4
billion in the same period a year earlier, the FT discloses.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 24, 2014, 24/7 Wall St. said Takata Corporation faces huge
fines, and almost certainly lawsuits (which have already begun),
over its defective airbags. The report related that some experts
believe that the Japanese company was not forthcoming about the
technical failure that caused several serious accidents and
deaths. If Takata goes bankrupt, which could certainly happen,
claims against the company would be in limbo, 24/7 Wall St. said.
Takata Corporation (TYO:7312) develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts. The Company
has subsidiaries located in Japan, the United States, Brazil,
Germany, Thailand, Philippines, Romania, Singapore, Korea, China
and other countries.
====================
N E W Z E A L A N D
====================
DICK SMITH: NZ Unit Gets Another Six Months to Find Buyer
---------------------------------------------------------
Tao Lin at Stuff.co.nz reports that Dick Smith New Zealand has
been granted an extension of time to report to creditors so the
business can be sold, rather than put into liquidation.
According to Stuff.co.nz, the Australian Financial Review reported
that the High Court in New Zealand granted the extension last
week, while administrator McGrathNicol's barrister in Australia
Jack Hynes also successfully asked the Federal Court for a six-
month extension for the Australian business.
Stuff.co.nz relates that Mr. Hynes said any sale of the
New Zealand Dick Smith business should be aligned with the
Australian group.
He said receiver Ferrier Hodgson had received about 50 expressions
of interest from potential buyers, Stuff.co.nz relates.
"Sale is going to be the most beneficial course. A sale will
likely mean the majority of employees maintaining their jobs," the
report Mr. Hynes as saying.
Stuff.co.nz notes that a letter from the receivers, tendered to
the Federal Court, showed that the anticipated timetable was for
final offers by the end of January and payment taking about 90
days, which would be around the end of May.
The report notes that the business' existence was heavily
dependent on leases for its stores and Mr. Hynes said a six-month
moratorium was critical to ensure the leases remained.
Federal Court judge David Yates said Ferrier Hodgson was of the
view that if the business could be sold, then most staff could
keep their jobs, Stuff.co.nz reports.
Even if a buyer could not be found, the extra time would allow
employees a chance to find another job, he said, the report
relays.
About Dick Smith
Dick Smith Holdings Limited Ltd (ASX:DSH) --
http://dicksmithholdings.com.au/-- is a retailer of consumer
electronics products. The Company sells a range of products across
four categories: office, mobility, entertainment, and other
products and services. The Company has two segments: Dick Smith
Australia and Dick Smith New Zealand. The Company connects with
its customers through four physical store formats, catering for
three distinct consumer demographics: Dick Smith, MOVE, David
Jones Electronics Powered by Dick Smith and MOVE by Dick Smith
Sydney International Airport. The Company's store network consists
of approximately 393 stores across Australia and
New Zealand, which include approximately 351 Dick Smith stores,
approximately 10 MOVE stores, approximately four MOVE by Dick
Smith stores and approximately 28 David Jones Electronics Powered
by Dick Smith stores.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 6, 2016, Dick Smith Holdings Ltd was placed in receivership
on Jan. 5 following the appointment of Voluntary Administrators.
Ferrier Hodgson partners Mr James Stewart, Mr Jim Sarantinos and
Mr Ryan Eagle were appointed Receivers and Managers over DSH and
an number of associated entities. The appointment was made by a
syndicate of lenders which hold security over the group.
Receiver Mr James Stewart said it was too early to clearly
identify the primary causes of the company's current financial
position and the reasons for its decline other than saying the
business had become cash constrained in recent times. He said it
would be business as usual while the Receivers look at the
restructuring and realisation opportunities for the Group.
"Dick Smith is one of the best known brands associated with,
consumer electronics in Australia and New Zealand," Mr Stewart
said. "We are immediately calling for expressions of interest for
a sale of the business as a going concern."
Mr Stewart said that employees will continue to be paid by the
Receivers and that it is expected that Australian employee
entitlements will be covered under the Fair Entitlements Guarantee
(FEG) scheme if the business cannot be sold as a going concern.
Mr Stewart added that the New Zealand business was profitable and
expected it would be attractive to potential buyers. He also
stated that due to the financial circumstances of the Group,
unfortunately, outstanding gift vouchers cannot be honoured and
deposits cannot be refunded. Affected customers will become
unsecured creditors of the Group.
GAMELOFT NEW ZEALAND: Parent Has to Repay NZ$2.9 Million Grant
--------------------------------------------------------------
Tom Pullar-Strecker at Stuff.co.nz reports that French computer
games company Gameloft will have to repay a NZ$2.9 million grant
after closing its Auckland studio with the loss of about 150 jobs,
Callaghan Innovation said.
Stuff.co.nz relates that the closure of Gameloft's New Zealand
office had put about a fifth of the country's computer game
developers out of work, New Zealand Game Developers Association
chairman Stephen Knightly estimated.
According to Stuff.co.nz, Callaghan Innovation spokesman Iain
Butler said the government grants agency had paid Gameloft
NZ$2.9 million under a research and development grant first
awarded in 2014.
Callaghan had now confirmed Gameloft's New Zealand business was
closing and would be demanding the money back, Mr. Butler, as
cited by Stuff.co.nz, said.
Stuff.co.nz says Mr. Knightly put a brave face on Gameloft's exit,
saying the country's 27 games developers took on an additional 138
staff in the year to March last year -- growth which he expected
would have continued at some rate since.
"There are two studios who weren't included in that who are now 30
or 40 people. I doubt the sector will take on another 150 staff in
the next 12 months, but there are hiring intentions out there,"
the report quotes Mr. Knightly as saying.
He hoped Gameloft's decision to pull out of New Zealand would also
have a silver lining in encouraging more business startups, the
report relays.
The association had expressed concern in August about the lack of
new games studios entering the industry, Stuff.co.nz adds.
===============
X X X X X X X X
===============
ASIA PACIFIC: Negative Rating Trend for Corporates to Worsen
------------------------------------------------------------
Moody's Investors Service says that the negative rating trend for
Asian non-financial corporates in 2015 will worsen in 2016,
because pressure is increasing on the companies' operating and
financial performance, as demand weakens due firstly to China's
slowing economy, and secondly to overcapacity and therefore
depressed prices in the oil and commodities industries.
"Upstream oil companies as well as metal and mining firms are the
most pressured because of the protracted downturn in the oil and
commodities industries," says Clara Lau, a Moody's Group Credit
Officer.
"Rising USD interest rates and a slower growth outlook for Asia
and in particular China could lead to capital market volatility,
resulting in higher credit risk, especially for issuers with weak
operating performance or liquidity," adds Lau.
Nevertheless, Lau says Moody's expects that continued monetary
easing by the Chinese and EU authorities will keep the liquidity
of corporates in Asia Pacific manageable.
Lau was speaking on Moody's just-released report titled "Credit
Policy: Negative Rating Trend for Asia Pacific Corporates to
Deepen in 2016".
The rating trend for Japanese corporates should remain stable in
2016, but headwinds are increasing, particularly for oil and oil
service issuers, and firms with large exposures to China.
For Australian and New Zealand corporates, Moody's expects the
negative rating trend to continue, driven by metal and mining
issuers. Such issuers accounted for half of the negative outlooks
in Moody's portfolio of Australian and New Zealand issuers at end-
2015.
As for the rating trend for Asia Pacific corporates for all of
2015, Moody's says the trend was negative. Moody's adjusted rating
trend tracker was at 0.41x in 2015, similar to the 0.38x seen in
2014. However, the number of rating actions in 2015 - both
positive and negative - was higher, with 42 positive and 103
negative rating actions compared to 26 positive and 68 negative
actions in 2014.
Chinese issuers accounted for about 40% of the total negative
rating actions in 2015.
Issuers in oil and commodities and related industries accounted
for about 36% of the total negative rating actions in 2015,
reflecting the severe downturn in the commodity cycle.
On a quarter-on-quarter basis, the rating trend deteriorated more
notably in 4Q 2015, with 11 positive and 40 negative actions
compared to 13 and 24 respectively in 3Q 2015. The number of
negative actions in 4Q 2015 was the highest for the four quarters
of 2015.
The rise in negative rating actions in 4Q 2015 reflected Moody's
expectation that the financial cushions for issuers in the oil and
commodities industries have been or will be undermined
significantly in the face of a protracted structural downturn and
that their vulnerability to continued depressed markets is
increasing.
There were nine defaulters in 2015, resulting in a high-yield
Asian corporate default rate of 6.4% at end-2015.
*********
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 2016. 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 ***