/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160427.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, April 27, 2016, Vol. 19, No. 82 Headlines A U S T R A L I A 101 TRANSPORT: First Creditors' Meeting Set For May 4 HUNTORO PTY: Court to Hear Wind Up Bid on May 6 PEPPERVALE PROPERTY: First Creditors' Meeting Set For May 4 QUEENSLAND NICKEL: Insolvency Guru to Chase Clive Palmer's Assets QUICKFLIX LIMITED: Placed in Voluntary Administration C H I N A CHINA: HK Traders Should Be Worried Amid China Defaults, UBS Says CHINA: 70 Firms Cancel, Delay Bond Issuance on Debt Default Fears ZHONGRONG INTERNATIONAL: S&P Puts 'BB' ICR on CreditWatch Neg. I N D I A AESTHETIC LIVINGMERCHANTS: CARE Ups INR1.08cr Loan Rating to BB ANAND MINE: CARE Revises Rating on INR4.95cr LT Loan to 'B' ARVEE ELECTRICALS: CARE Lowers Rating on INR10cr Loan to D ASIAN AEROSOL: CARE Lowers Rating on INR10.32cr LT Loan to B+ ASTHA ASSOCIATE: CRISIL Reaffirms B+ Rating on INR10MM Loan BABA BISWANATH: CRISIL Suspends 'B' Rating on INR35MM Term Loan BUTTA HOSPITALITIES: ICRA Suspends B Rating on INR39.5cr Loan CAPITAL ENTERPRISES: CARE Cuts Rating on INR7cr Loan to D CAPITAL INFRAPROJECTS: Ind-Ra Assigns 'IND BB+' LT Issuer Rating CHIRANJI LAL: CRISIL Assigns 'B' Rating to INR40MM Whse Loan E. A. KHAN: CARE Reaffirms B+ Rating on INR8.50cr LT Loan ESSMA TEXTILES: CRISIL Assigns B+ Rating to INR55MM Cash Loan GURU KIRPA: CRISIL Cuts Rating on INR140MM Cash Loan to D IDT CLOTHING: CRISIL Assigns B+ Rating to INR90MM Packing Loan IENERGIZER LTD: S&P Revises Outlook to Stable & Affirms 'B' CCR JD CONSTRUCTION: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating JUPITER BUILDTECH: CRISIL Assigns 'B' Rating to INR90MM Loan KBK CHEM: ICRA Reassigns 'C' Rating to INR15cr Cash Loan KRISHNA COTTEX: ICRA Reaffirms B Rating on INR4.50cr Loan MADHUCON SUGAR: ICRA Reaffirms 'B' Rating on INR80cr Cash Loan N. B. COTEX: ICRA Assigns 'B' Rating to INR5.50cr Cash Loan NANDI COTTON: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating NAVJIVAN COTTON: ICRA Reaffirms B Rating on INR11.75cr Loan OCEAN CONSTRUCTIONS: ICRA Reaffirms B Rating on INR18cr Loan OMEGA INFRAENGINEERS: CRISIL Suspends B+ Rating on INR10MM Loan P N PAPER: CRISIL Suspends 'D' Rating on INR86MM Cash Loan RANK CRANES: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating RUBY MILLS: CARE Ups Rating on INR213.69cr LT Loan to BB- RUDRA INFRADEVELOPERS: ICRA Suspends B Rating on INR25cr Loan SAHARA INDUSTRIES: ICRA Reaffirms 'B' Rating on INR11cr Loan SAHIBZADA TIMBER: Ind-Ra Ups Long-Term Issuer Rating to 'IND BB-' SELVE CASHEWS: CRISIL Assigns 'B' Rating to INR50MM Cash Loan SHRI BALAJI: CARE Reaffirms 'D' Rating on INR7.18cr LT Loan SIWAL INFRACON: ICRA Suspends B+ Rating on INR11cr Bank Loan SUBHASISH JENA: CRISIL Suspends B+ Rating on INR30MM Cash Loan SUN HOSPITALITY: ICRA Reaffirms 'B' Rating on INR13cr Loan SUPREME NUTRI: ICRA Reaffirms 'B' Rating on INR7cr Cash Loan SYNERGY REMEDIES: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating TARA INFRATECH: CRISIL Suspends 'D' Rating on INR120MM Term Loan TUTICORIN COAL: CARE Lowers Rating on INR281cr LT Loan to D TWINCITY SUNLIFE: Ind-Ra Suspends 'IND B+' LT Issuer Ratings UTTAM GALVA: Ind-Ra Cuts Long-Term Issuer Rating to 'IND D' VARSHA INDUSTRIES: ICRA Reaffirms B/A4 Rating on INR40cr Loan VERSATILE ALUCAST: ICRA Reaffirms D Rating on INR8.0cr Loan VIGNESHWARA WOOD: ICRA Cuts Rating on INR1.5cr Loan to B+ VIJAYANAGAR SUGAR: ICRA Reaffirms D Rating on INR338.69cr Loan VISMIT INFRASTRUCTURE: Ind-Ra Assigns 'IND B+' LT Issuer Rating WELLWISHER HOMES: CARE Reaffirms B+ Rating on INR24cr LT Loan WONDER CONSTRUCTION: ICRA Reaffirms B- Rating on INR10cr Loan YASHASHREE TUBES: ICRA Cuts Rating on INR5.5cr LT Loan to D J A P A N TOSHIBA CORP: Expects Smaller Than Expected Loss for Fiscal 2015 M A L A Y S I A 1MALAYSIA DEVELOPMENT: Defaults on $1.75 Billion Bond Issue N E W Z E A L A N D TRENCHMATE: In Receivership Sale CORELLI INTERNATIONAL: Collapses Into Receivership P H I L I P P I N E S SURIGAO CITY: Rural Bank Placed Under PDIC Receivership - - - - - ================= A U S T R A L I A ================= 101 TRANSPORT: First Creditors' Meeting Set For May 4 ----------------------------------------------------- Domenico Alessandro Calabretta of Mackay Goodwin was appointed as administrator of 101 Transport Services Proprietary Limited on April 22, 2016. A first meeting of the creditors of the Company will be held at Steve Di Petta & Associates Pty Ltd, 18-20 Ashenden Street, in Shepparton, on May 4, 2016, at 11:00 a.m. HUNTORO PTY: Court to Hear Wind Up Bid on May 6 ----------------------------------------------- An application for the winding up of Huntoro Pty Ltd was commenced by the plaintiff Deputy Commissioner of Taxation on April 8, 2016, and will be heard on May 6, 2016, at 11:00 a.m., Law Courts Building, Queens Square, 184 Phillip Street, in Sydney. PEPPERVALE PROPERTY: First Creditors' Meeting Set For May 4 ----------------------------------------------------------- Blair Pleash and David Ingram of Hall Chadwick Chartered Accountants were appointed as administrators of Peppervale Property Limited on April 21, 2016. A first meeting of the creditors of the Company will be held at Hall Chadwick Chartered Accountants, Level 40, 2 Park Street, in Sydney, on May 4, 2016, at 10:00 a.m. QUEENSLAND NICKEL: Insolvency Guru to Chase Clive Palmer's Assets ----------------------------------------------------------------- The Australian reports that Clive Palmer said the federal government is pursuing him over unpaid worker entitlements because it wants him out of parliament. According to the Australian, the Turnbull government will unleash one of the nation's top insolvency experts to chase federal MP Clive Palmer's assets, as it activates the safety-net scheme for sacked workers' entitlements. The Australian relates that in announcing the claw-back plan, employment minister Michaelia Cash said it had nothing to do with Mr Palmer's position as an MP, and everything to do with his business conduct at Queensland Nickel. However, Mr Palmer insists that is not true. "It can only be for political purposes. Here we have the executive of the federal government ordering the investigation of a political opponent," he told AAP. "Look at the coverage of the Clive Palmer thing in Australia compared with all the other jobs lost (in the resources sector). There is an election coming up." According to The Australian, Mr. Palmer has said he has been denied the presumption of innocence following the release of FTi Consulting's report, which said there was evidence to suggest Mr Palmer used Queensland Nickel as a "piggy bank" to fund his other businesses and interests. "At no time did I, or any company associated with me, take money that was beneficially owned by Queensland Nickel -- for any purpose," The Australian quotes Mr. Palmer as saying. "I haven't been charged with anything, I haven't been offered due process, or natural justice. These are dangerous things for any citizen and it's dangerous for our country." The Australian relates that Resources Minister Josh Frydenberg said Queensland Nickel's collapse was "all the fault of Clive Palmer" and promised the government would use "whatever means it possibly can" to pursue the self-described billionaire. "We want to ensure that the workers have a future to go forward, they do get their entitlements paid for, and of course the government would be looking to recoup any of that money through whatever means it possibly can," Mr Frydenberg told ABC radio on April 20, The Australian relays. "It's a bit rich for Clive Palmer to now be playing the victim given how many victims he has left behind." According to The Australian, Employment Minister Michaelia Cash was to confirm last April 20 that the nearly 800 employees will now be able to claim most of their AUD74 million in unpaid entitlements under the government's Fair Entitlements Guarantee. Sacked workers have been demanding for months that the minister use her discretion and activate the FEG ahead of Queensland Nickel's liquidation, to deliver some relief to those in dire financial straits. The Australian says Queensland Nickel is expected to collapse into liquidation on April 29 after a vote of creditors, who are owed AUD300 million by Mr Palmer's company. He claims he has no responsibility to pay the debts, but Senator Cash said the government would apply to a court to appoint a special purpose liquidator to help recover taxpayers' money. "We are doing this because of the unique and alarming circumstances in this case -- where a current member of parliament and self-reported wealthy Australian businessman is directly involved," she said. "The government wants to send a clear message that in appropriate cases, (it) is prepared to step in to assist in ensuring that employee entitlements are recovered in full from any companies or individuals that have profited from the endeavours of hardworking Australians." According to The Australian, the government has hand-picked Stephen Parbery, founding partner of PPB Advisory, who is considered in the sector as a "senior statesman of the insolvency industry". His decades-long career has seen him involved in dealing with the aftermath of corporate collapses such as Ansett Airlines, HIH Insurance and ABC Learning childcare centres. He was special purpose liquidator in the FAI Limited case, the report notes. Administrators FTI Consulting are widely expected to be appointed liquidators after the creditors meeting in Townsville on April 29. The government said Mr Parbery would work alongside FTI, but The Australian understands the move could see FTI take a back seat as Mr Parbery's PPB runs potential litigation and asset recovery. Queensland Nickel operates the Palmer Nickel and Cobalt Refinery in Queensland, Australia. Queensland Nickel directors appointed John Park, Stefan Dopking, Kelly-Anne Trenfield and Quentin Olde of FTI Consulting as voluntary administrators on Jan. 18, 2016. QUICKFLIX LIMITED: Placed in Voluntary Administration ----------------------------------------------------- Dermott McVeigh, Wayne Rushton and Morgan Kelly of Ferrier Hodgson were appointed joint and several Voluntary Administrators of Quickflix Limited on April 26, 2016. Their appointment does not extend to the Company's subsidiaries or operations in New Zealand. The Administrators have commenced an urgent analysis of the Company's position and will continue to trade the business while they explore a sale or restructure. Accordingly, there is not expected to be any disruption to the services provided to its subscribers. The first meeting of creditors of the Company will be held on May 6, 2016, at 11:00 a.m. at Holiday Inn, 778-788 Hay Street, in Perth, WA 6000. Quickflix Limited is an ASX listed company, headquartered in Perth, Western Australia. The Company's principal activities involve the provision of an online movie subscription service and a DVD & Blu-ray delivery service. ========= C H I N A ========= CHINA: HK Traders Should Be Worried Amid China Defaults, UBS Says ----------------------------------------------------------------- Justina Lee at Bloomberg News reports that China's state-backed companies no longer have the ironclad support of the government -- and that's bad news for the equity bull market in Hong Kong, says UBS Group AG. According to Bloomberg, three of the seven Chinese companies that defaulted on debt repayments this year are partly owned by the state, including Baoding Tianwei Group Co. Bloomberg relates that the end of implicit government support will drive up funding costs and undermine foreign investor confidence in the 20% rebound by the Hang Seng China Enterprises Index, said Lu Wenjie, a Shanghai-based equity strategist at UBS. "People are realizing national SOEs can default, local government-owned enterprises can default -- anything can default," Bloomberg quotes Mr. Lu as saying. "H-share investors, especially foreign investors, haven't paid much attention to this yet, so the risk isn't priced in." Bloomberg says defaults are a relatively new phenomenon in China, which had its first such case only in 2014. According to the report, the rising number of payment failures is reverberating across the nation's $3 trillion credit market, with onshore junk debt heading for its biggest monthly selloff since 2014, issuers canceling bond sales and Standard & Poor's cutting its assessment of Chinese firms at the fastest pace since 2003. The widening of credit spreads from eight-year lows also threatens an incipient economic recovery, which has been mainly supported by a surge in cheap lending, Bloomberg states. "China's credit risks haven't been entirely exposed because of implicit guarantees and bailouts," said Lu, who declined to predict how far H shares will fall, Bloomberg relays. "Now they're starting to be exposed, but you don't know how bad things can get." Bloomberg notes that foreign investors have turned more optimistic about the outlook for the nation's equities than their mainland counterparts, with the Hang Seng China Enterprises Index outperforming the Shanghai Composite Index by the most in six months last week. The Hong Kong traded-gauge has pared its losses this year to 7 percent at the end of April 25, compared with a 17 percent plunge by China's benchmark measure, as raw material producers led the rebound, according to Bloomberg. The H-share index rose 0.3 percent at the close, after falling as much as 1.4 percent. Cyclical industries seem to be showing some green shoots, but once defaults occur, you'll realize their balance-sheet risks are still very high," Mr. Lu, as cited by Bloomberg, said. "Their fundamentals are not solid, so I think these stocks will suffer." CHINA: 70 Firms Cancel, Delay Bond Issuance on Debt Default Fears ----------------------------------------------------------------- Reuters reports that Chinese firms have delayed or axed at least CNY68.8 billion (HK$81.8 billion) of bond and other fixed-income issuance so far this month as investor concerns over debt defaults mount. Around 70 firms have delayed or canceled issues, many in excess capacity industries, including cement and mining, Reuters relates citing data compiled from China's two main clearinghouses for the interbank market and the interbank market operator. Reuters says an increasing number of Chinese firms in old industrial sectors have encountered repayment difficulties in the past six months as economic growth slows and the government pushes on with painful structural reforms. That has led to higher rates of canceled bond issues as investors shy away from those sectors. After China Shanshui Cement's default in November, which helped push low-rated bond yields higher, firms canceled or postponed more than CNY40 billion of bond issuance, Reuters notes. Reuters relates that although the number of cancelations is striking, analysts said they are likely to represent a recalibration of risk appetite as investors assess rising defaults and shifting monetary policy, rather than a fundamental turn in the market as a whole. "You're seeing a little more credit defaults, including from [state-owned enterprises], which is making the market nervous," Reuters quotes Zhou Hao, senior emerging market economist at Commerzbank in Singapore, as saying. "The central bank also looks less aggressive right now, which could trigger a little bit of deleveraging" Chinese fixed-income yields, including treasury rates, have moved up noticeably since the start of the month, Reuters says. Analysts said that is a reaction to signs of strong supply growth and reduced expectations of further monetary easing, in addition to defaults by industrial firms, the report notes. ZHONGRONG INTERNATIONAL: S&P Puts 'BB' ICR on CreditWatch Neg. -------------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'BB' long-term and 'B' short-term issuer credit ratings and 'cnBBB-' long-term and 'cnA-3' short-term Greater China regional scale ratings on Zhongrong International Holdings Ltd. (Zhongrong) on CreditWatch with negative implications. At the same time, S&P placed the 'BB' long-term issue rating and 'cnBBB- ' Greater China regional scale rating on the bond that the company guarantees on CreditWatch with negative implications. Zhongrong is a British Virgin Islands-incorporated intermediate holding company under China-based Zhongrong International Trust Co. Ltd. "We placed the ratings on CreditWatch because we believe that Zhongrong faces financial pressure that will require its parent to inject equity for it to satisfy the minimum equity covenant under the guaranteed bond that its wholly owned subsidiary Zhongrong International Bond 2015 Ltd. issued," said Standard & Poor's credit analyst Harry Hu. Zhongrong made a loss in 2015 and S&P believes it may face continued financial pressure in 2016, furthering the equity erosion. Without timely capital injection, the equity erosion could trigger a breach of the covenant to maintain Chinese renminbi (RMB) 10 million in minimum equity attributable to its owners. While Zhongrong is expecting a capital injection from its ultimate Chinese parent, Zhongrong International Trust, the proposed transfer is awaiting necessary regulatory approvals, potentially leaving a timing gap for a possible technical breach. Under the relevant guaranteed bond covenant, an event of default occurs if the guarantor defaults on its obligations under the notes and it cannot be remedied for 30 days or a longer period that the trustee may agree after a written notice. Given the losses, management changes, and slow progress in reaching originally-set business and financial targets, Zhongrong's group status may weaken, in S&P's view. S&P currently considers the company's Chinese parent Zhongrong International Trust to be a government-related entity and view Zhongrong as an indirect beneficiary. "We aim to resolve the CreditWatch placement within three months. In doing so, we would monitor the timeliness of the planned capital injection into Zhongrong and how the company prevents any potential temporary covenant breach," said Mr. Hu. "We would also assess whether Zhongrong's group status has weakened and any changes to the likelihood of indirect flow of extraordinary government support to the company." S&P could lower the ratings by multiple notches to 'SD' if the event of default is triggered under the guaranteed bond. S&P could lower the rating by one notch if it believes that the likelihood of extraordinary government support cannot flow to Zhongrong. A lowering of S&P's assessment of the company's status in the group may also result in a lower rating. S&P may affirm the ratings if Zhongrong prevents the potential covenant breach and S&P assess that the company remains a highly strategic subsidiary and beneficiary of indirect extraordinary government support. ========= I N D I A ========= AESTHETIC LIVINGMERCHANTS: CARE Ups INR1.08cr Loan Rating to BB --------------------------------------------------------------- CARE revises the LT rating and reaffirms the ST rating of Aesthetic Livingmerchants Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 1.08 CARE BB Revised from CARE B+ Short-term Bank Facilities 13.92 CARE A4 Reaffirmed Rating Rationale The revision in the long term rating of Aesthetic Living Merchants Private Limited (ALM) factors in successful completion of expansion project, stabilization of operations of newly set up showrooms and regular infusion of funds by the promoters thereby improving liquidity position of the company. The ratings continue to derive strength from the experience of the promoters, and ALM's moderate profitability margins, debt service coverage indicators, operating cycle and favourable industry outlook. The ratings are, however, constrained by its small scale of operations with low net worth base and leveraged capital structure. The ratings are further constrained by foreign exchange fluctuation risk and intense competition with the presence of organized and unorganized players in the industry. Going forward, the ability of ALM to increase its scale of operations while improving its profitability margins and capital structure and managing its foreign exchange fluctuation risk shall be the key rating sensitivities. Aesthetic Living Merchant Private Limited (ALM) was incorporated in 2002 by Mr Nitin Jain and Mrs. Ritika Jain. The company is engaged in the manufacturing of textile home furnishing products which include bedroom accessories (blankets, bed sheets, pillow covers, cushion etc) and kitchen accessories (velvet bottle cover, aprons, oven mittens and pot holders). ALM procures its raw material i.e. fabrics, leather, beads etc from the domestic market as well as overseas market. ALM sells its products under the two brands name "ABIA" and "InV" to customers located in India and overseas market. The company has 5 retail outlets, out of which three outlets located at Mumbai, Hyderabad and Chandigarh were opened in October 2015. The other two outlets are located in Greater Kailash, Delhi and Sultanpur. ALM's export sales accounted for 87.50% of total operating income in FY15 (refers to the period April 01 to March 31). ALM reported a PAT of INR1.08 crore and PBILDT of INR3.84 crore on a total income of INR54.19 crore in FY15 as against a PAT of INR1.12 crore and PBILDT of INR3.34 on a total income of INR59.90 crore in FY14. ALM has achieved a total operating income of INR60 crore till February 29, 2016 (as per unaudited results). ANAND MINE: CARE Revises Rating on INR4.95cr LT Loan to 'B' ----------------------------------------------------------- CARE revises the LT rating and reaffirms the ST rating of Anand Mine Tools Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 4.95 CARE B Revised from CARE B+ Short-term Bank Facilities 1.60 CARE A4 Rating Rationale The revision in the ratings assigned to the long-term bank facilities of Anand Mine Tools Private Limited (AMTPL) factors in the deterioration in the solvency position and increase in working capital cycle. The ratings continue to remain constrained on account of the small scale of operations along with the short track record of operations, customer concentration risk and moderate debt coverage indicators. The ratings factor in experience of the promoters, group support, strong customer profile and contract with its major customer for maintaining mining machineries. The ability of the company to improve its scale of operations while maintaining the profitability margins, improvement in the capital structure and efficiency in managing its working capital requirements are the key rating sensitivities. AMTPL was incorporated in the year 2010 by Mr. Tukaram Jawade along with his son Mr. Hemant Jawade and is based in Nagpur (Maharashtra). The company is engaged in the trading of pumps, spare parts and earth moving machineries and also provides workshops for repairing of mining machineries. The trading segment contributed 75% of total income while the services segment contributed 25% in FY15 (refers to the period April 1 to March 31). The company in the year July 2014 has set up a workshop in Butibori (Nagpur) for providing services like repairing and rehabilitation of mining machineries. AMTPL has a five year service contract for maintenance of mining machineries for Sandvik Asia Private Limited (SAPL). The company has discontinued the authorised dealership of Doosan Infracore Private Limited (DIPL) in FY16. However in January 2016, the company has set up an authorised dealership of JCB India Limited for the Vidharba region of Maharashtra. During FY15, the company has registered a total operating income (TOI) and profit after tax (PAT) of INR4.91 crore and INR0.18 crore, respectively, as against INR4.40 crore and INR0.09 crore, respectively, in FY14. ARVEE ELECTRICALS: CARE Lowers Rating on INR10cr Loan to D ---------------------------------------------------------- CARE revises ratings assigned to the bank facilities of Arvee Electricals and Engineers Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 1.50 CARE D Revised from CARE B+ Short-term Bank Facilities 10.00 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Arvee Electricals and Engineers Private Limited (AEEPL) factors in the devolvement of the letter of credit facility availed by the company. Arvee Electricals and Engineers Private Limited (AEEPL), is a Pune based company promoted by Mr. Arun Doshi and Mrs Asha Doshi. The company is a turnkey electrical contractor and handles turnkey contracts for sugar, cement, fertilizer, metallurgical plants, cement plants and the oil industry amongst others. The company provide services related to engineering, detailing, designing, production and commissioning of substations and transmission lines set up for private organizations. AEEPL is also involved in the trading of electrical components like LT panels and electrical control boards (about 20% of the total operating income for FY15). AEEPL is ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:1999 certified company. In FY15, the company has registered a total operating income of INR19.17 crore and PAT of INR0.08 as against INR 28.56 crore and INR0.12 respectively in FY14. ASIAN AEROSOL: CARE Lowers Rating on INR10.32cr LT Loan to B+ ------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Asian Aerosol Oan Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 10.32 CARE B+ Revised from CARE BB- Rating Rationale The revision in the rating assigned to the bank facilities of Asian Aerosol OAN Private Limited (AAPL) takes into account cash losses incurred resulting into negative networth and weak liquidity position during FY15 (refers to the period April 1 to March 31) and decline in the operating income during 9MFY16. The rating continues to remain constrained on account of susceptibility of margin to fluctuation in input price and working capital intensive nature of operations. The rating, however, continues to derive strength from the experienced promoters along with financial support in the past and established presence of the group in the aerosol industry. The ability of AAPL to increase its scale of operations and improve profitability amidst intense competition and capital structure along with efficient management of its working capital remain the key rating sensitivity. Incorporated in 2011, AAPL promoted by Mr Bhogilal Patel, is engaged in the manufacturing of aerosol-based products (viz, producing aerosol containers and filling of aerosol products like shaving creams, gels, after shave products, deodorants and antiperspirant) for the fast moving consumer goods (FMGC) companies. The company has commenced commercial operations from July 2014 at Valsad (Gujarat) with an installed capacity of 4 lines, ie, 350 cans per minutes. AAPL is a part of the Asian Aerosol group, which is in existence for nearly four decades in the aerosol industry having group turnover of more than INR118 crore in FY15. AAPL during first full year of operations i.e FY15 achieved TOI of INR 17.06 crore and incurred a net loss of INR 3.18 crore. Furthermore, the company during 9MFY16 achieved a total income of INR2.14 crore. ASTHA ASSOCIATE: CRISIL Reaffirms B+ Rating on INR10MM Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Astha Associate Engineering & Contractor (AAEL) continue to reflect its weak financial risk profile, marked by moderate gearing and average debt protection metrics, and geographic concentration in revenue. These weaknesses are partially offset by the extensive experience of the promoter. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL A4 (Reaffirmed) Cash Credit/ Overdraft facility 10 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes AAEC will continue to benefit over the medium term from the extensive experience of the promoter. The outlook may be revised to 'Positive' if significant ramp-up in scale of operations, enhanced geographical diversity in revenue, prudent working capital management, and stable profitability strengthen credit metrics. Conversely, the outlook may be revised to 'Negative', if low accrual, stretch in working capital cycle, or any large capital expenditure weakens financial risk profile, particularly liquidity. Set up in 2004, AAEC is an Etah-based partnership firm, undertaking contracts in construction of check dams, roads and bridges. The firm is an 'AA' class contractor with the Irrigation Department, Government of Uttar Pradesh. Operations are managed by key promoter, Mr. Shyam Singh. BABA BISWANATH: CRISIL Suspends 'B' Rating on INR35MM Term Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Baba Biswanath Agro Products Private Limited (BBAPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1.9 CRISIL A4 Cash Credit 35 CRISIL B/Stable Proposed Long Term Bank Loan Facility 13.1 CRISIL B/Stable Standby Line of Credit 5.0 CRISIL B/Stable Term Loan 35.0 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by BBAPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BBAPPL is yet to provide adequate information to enable CRISIL to assess BBAPPL'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 1996, BBAPPL is engaged in milling and processing of paddy into rice, rice bran, broken rice, and husk. The company's promoter-directors Mr. Samir Kundu, Mr. Chandan Kundu, and Mr. Malay Kundu manage its day-to-day operations. BUTTA HOSPITALITIES: ICRA Suspends B Rating on INR39.5cr Loan ------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to the INR39.50 crore fund based facilities of Butta Hospitalities Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Butta Hospitalities Private Limited (BHPL), formerly Amogh Hotels Limited, is the hospitality arm of the BUTTA group of companies. The company was established in the year 1995 and currently operates three hotels and a few restaurants in Hyderabad, Telangana. The group's first hospitality venture was in the year 1985 and there have been consistent additions to its portfolio over the years. The Company is promoted by Mr. Butta S Neelakanta. The Butta group has presence in the Hospitality, Education, Branded Retail and Automobile space in Hyderabad. CAPITAL ENTERPRISES: CARE Cuts Rating on INR7cr Loan to D --------------------------------------------------------- CARE revokes suspension and revises the ratings assigned to the bank facilities of Capital Enterprises. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5 CARE D Rating suspension revoked and revised from CARE BB Short-term Bank Facilities 7 CARE D Rating suspension revoked and revised from CARE A4 Rating Rationale The revision in the ratings assigned to the long-term bank facilities of Anand Mine Tools Private Limited (AMTPL) factors in the deterioration in the solvency position and increase in working capital cycle. The ratings continue to remain constrained on account of the small scale of operations along with the short track record of operations, customer concentration risk and moderate debt coverage indicators. The ratings factor in experience of the promoters, group support, strong customer profile and contract with its major customer for maintaining mining machineries. The ability of the company to improve its scale of operations while maintaining the profitability margins, improvement in the capital structure and efficiency in managing its working capital requirements are the key rating sensitivities. AMTPL was incorporated in the year 2010 by Mr. Tukaram Jawade along with his son Mr. Hemant Jawade and is based in Nagpur (Maharashtra). The company is engaged in the trading of pumps, spare parts and earth moving machineries and also provides workshops for repairing of mining machineries. The trading segment contributed 75% of total income while the services segment contributed 25% in FY15 (refers to the period April 1 to March 31). The company in the year July 2014 has set up a workshop in Butibori (Nagpur) for providing services like repairing and rehabilitation of mining machineries. AMTPL has a five year service contract for maintenance of mining machineries for Sandvik Asia Private Limited (SAPL). The company has discontinued the authorised dealership of Doosan Infracore Private Limited (DIPL) in FY16. However in January 2016, the company has set up an authorised dealership of JCB India Limited for the Vidharba region of Maharashtra. During FY15, the company has registered a total operating income (TOI) and profit after tax (PAT) of INR4.91 crore and INR0.18 crore, respectively, as against INR4.40 crore and INR0.09 crore, respectively, in FY14. CAPITAL INFRAPROJECTS: Ind-Ra Assigns 'IND BB+' LT Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Capital Infraprojects Private Limited (CIPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The agency has also assigned CIPL's INR1,000m term loan an 'IND BB+' rating with a Stable Outlook. KEY RATING DRIVERS The ratings reflect CIPL's time and cost overrun risks in its ongoing project, The Goldem Palms in Noida. The ratings factor in the around 60% completion of the project by March 2016 and around 60% (839 units) of the project being already booked. The ratings benefit from CIPL's promoter's experience of over four decades in the residential and commercial real estate space and the fact that CIPL is a joint venture between IITL Projects Limited, a subsidiary of Industrial Investment Trust Limited (IITL) and Nimbus Group. The ratings are further supported by the project being located 7 km from the sec-18 market on the Greater Noida Expressway. The project is in the vicinity of Jaypee Hospital, Genesis Global School and Amity University. RATING SENSITIVITIES Negative: Time and cost overruns or cancellations of sold units, leading to stressed cash flows, could lead to a negative rating action. Positive: An improvement in sales and timely receipt of advances from customers, leading to stronger cash flows, could lead to a positive rating action. COMPANY PROFILE CIPL was incorporated in 2010 as a private limited company and constructs residential and commercial real estate projects. It is a joint venture between IITL Projects Limited, a subsidiary of IITL and Nimbus Group. The Golden Palms is located in Sector 168, Noida on the Noida Expressway. Upon completion, the project will have 1408 units (1, 2, 3 and 4 BHK) spread across 13 towers with areas ranging from 506 sq. ft. to 2473 sq. ft. The complex will have a commercial area, club house, gym, play area for children, community hall, business lounge and a space for yoga/meditation. The gated complex will have guards as well as a high-tech security system with intercom facilities for each unit. CHIRANJI LAL: CRISIL Assigns 'B' Rating to INR40MM Whse Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Chiranji Lal Atma Ram (CLAR). The rating reflects the firm's modest scale of operations in the fragmented commodity trading industry, and below-average financial risk profile because of a high total outside liabilities to adjusted- networth ratio. These weaknesses are partially offset by the extensive industry experience of its proprietor. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Warehouse Financing 40 CRISIL B/Stable Cash Credit 20 CRISIL B/Stable Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable Outlook: Stable CRISIL believes CLAR will continue to benefit over the medium term from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' in case of an increase in revenue and profitability along with prudent working capital management, leading to considerably stronger net cash accrual. Conversely, the outlook may be revised to 'Negative' in case of a decline in revenue and profitability, any large, debt-funded capital expenditure, or increase in working capital requirement, resulting in deterioration in the financial risk profile, particularly liquidity. CLAR, based in Dabwali, Haryana, is a proprietorship firm promoted by Mr. Yogesh Kumar in 2012. The firm trades in agricultural commodities such as mustard, cotton seed, cotton, guar, gram, barley, and cotton seed de-oiled cakes. E. A. KHAN: CARE Reaffirms B+ Rating on INR8.50cr LT Loan --------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of E. A. Khan & Sons. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 8.50 CARE B+ Reaffirmed Short-term Bank Facilities 1.50 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of E. A. Khan and Sons (EAKS) continue to be constrained by relatively modest scale of operations, leveraged capital structure and moderate debt coverage indicators. The ratings are further tempered by working capital intensive nature of operations, customer and geographic concentration, presence in the highly competitive & fragmented industry along with tender-driven nature of business and proprietorship nature of its constitution. The reaffirmation of the ratings factor in increase in the operating income and cash accruals albeit deterioration in capital structure and debt coverage indicators during FY15 (refers to the period April 1 to March 31). The ratings, however, continue to draw strength from experienced proprietor along with long track record of operations and moderate profitability. The ability of EAKS to increase its scale of operations and improve profitability amidst intense competition and capital structure along with efficient management of its working capital remains the key rating sensitivity. Established in 1993, EAKS is engaged in the civil engineering and construction (new construction of buildings such as schools, fire brigades, Staff quarters along with structural repair activities) for Municipal Corporation of Greater Mumbai (MCGM) (accounting for 100% of the total income in FY15) through bidding process and is registered 'AA Class' (scale of AA to D) contractor for buildings with MCGM. The key raw material i.e. cements and steel are sourced from local suppliers. During FY15, the entity had posted total income of INR19.36 crore (vis-a-vis INR14.53 crore in FY14) and PAT of INR0.87 crore (vis-a-vis INR0.64 crore in FY14). ESSMA TEXTILES: CRISIL Assigns B+ Rating to INR55MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank loan facility of Essma Textiles Private Limited (ETPL). The rating reflects the company's modest scale of operations in the highly fragmented textile industry, and its large working capital requirement. These weaknesses are partially offset by its promoters' extensive industry experience and its comfortable financial risk profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable Outlook: Stable CRISIL believes ETPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of significant increase in revenue and profitability, and efficient working capital management. Conversely, the outlook may be revised to 'Negative' if financial risk profile weakens because of lower- than-expected profitability, substantial increase in working capital requirement, or large debt-funded capital expenditure. ETPL, incorporated in 1974, is promoted by Mr. Suresh Chandra Mehra, Mr. Suchit Mehra, and Ms. Sushma Mehra. The company manufactures textile products and specializes in woolen fabrics such as blankets, shawls, suitings, tweed, and soft furnishings. Its manufacturing facilities are in Amritsar. GURU KIRPA: CRISIL Cuts Rating on INR140MM Cash Loan to D --------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Guru Kirpa Foods Pvt Ltd (GKFPL) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 140 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Term Loan 16.7 CRISIL D (Downgraded from 'CRISIL B/Stable') Term Loan 3.3 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects GKFPL's delay in servicing debt obligations on account of weak liquidity driven by large working capital requirements and volatility in raw material prices. The company had shut production for two months (November and December 2015) that resulted in stretched liquidity and delayed servicing of debt obligations. The rating reflects GKFPL's weak financial risk profile, because of high gearing, weak debt protection metrics, and stretched liquidity. The rating also reflects the working capital-intensive operations and the susceptibility of operating margin to volatility in raw material prices. These weaknesses are partially offset by the extensive experience of the promoters in the rice industry. GKFPL is engaged in hulling and milling of paddy and processing of basmati rice. It was founded by Mr. Subhash Chander in Ghubaya village at Jalalabad (Punjab) in 2000. The company, reported profit after tax (PAT) of INR0.7 million on net sales of INR688 million for 2014-15 (refers to financial year, April 1 to March 31) against PAT of INR1.6 million on net sales of INR643.2 million for 2013-14. IDT CLOTHING: CRISIL Assigns B+ Rating to INR90MM Packing Loan -------------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of IDT Clothing Private Limited (IDT) and has assigned its 'CRISIL B+/Stable' rating to IDT's bank facilities. The rating was 'Suspended' by CRISIL vide the Rating Rationale dated June 05, 2015 since IDT had not provided necessary information required to take the rating review. IDT has now shared the requisite information enabling CRISIL to assign rating on its bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable (Assigned; Suspension Revoked) Export Packing Credit 90 CRISIL B+/Stable (Assigned; Suspension Revoked) Proposed Long Term 15 CRISIL B+/Stable (Assigned; Bank Loan Facility Suspension Revoked) The ratings reflect modest scale of operations in the intensely competitive ready-made garment industry, vulnerability of profitability margins to foreign exchange fluctuation, working capital-intensive operations, and average financial risk profile because of a modest networth and subdued debt protection metrics. These weaknesses are partially offset by the extensive experience of IDT's promoters and their funding support. For arriving at the ratings, interest-free unsecured loans of INR40.9 million from promoters and family members have been treated as neither debt nor equity as they will be retained in the business for the medium term. Outlook: Stable CRISIL believes IDT will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' if significant and sustained improvement in revenue and profitability leads to higher-than-expected cash accrual. Conversely, the outlook may be revised to 'Negative' if low cash accrual or stretch in working capital cycle further weakens financial risk profile, particularly liquidity. Established as a partnership firm in 2002 by Mr. Suraj Gupta and his brother, Mr. Amar Gupta, IDT was reconstituted as a private limited company in 2006. The company manufactures and exports ready-made garments for men. Facility is in Bhiwandi. IENERGIZER LTD: S&P Revises Outlook to Stable & Affirms 'B' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its rating outlook on iEnergizer Ltd. to stable from negative. At the same time, S&P affirmed its 'B' long-term corporate credit rating on the India-based business process outsourcing (BPO) company. S&P also affirmed its 'B' long-term issue rating on iEnergizer's U.S. dollar-denominated secured bank loan. "We revised the outlook to stable because we believe that the risk of a breach of financial covenant for iEnergizer in the next 12 months has receded," said Standard & Poor's credit analyst Ashutosh Sharma. The company's reduced leverage following an equity infusion of about US$5.0 million by its parent EICR (Cyprus) Ltd. in fiscal 2016 (year ended March 31, 2016) and stabilizing business performance has increased headroom in the covenants. EICR is ultimately owned by Anil Aggarwal, who is also the chief executive officer of iEnergizer. iEnergizer's operating performance has stabilized over the past three to six months. New customer wins in real-time processing and business outsourcing services have increased visibility over the company's business and financial performance in fiscal 2017. Moreover, none of iEnergizer's top-10 customer contracts are up for renewal over the next few quarters, which should reduce the risk of any significant customer loss in the near term. S&P expects iEnergizer to grow in-line with the global information technology (IT) services and software sector over the next two years. However, the growth will be lower than that of larger and more diversified Indian peers, such as Genpact Ltd. and Wipro Ltd. iEnergizer's small size, and limited customer and geographical diversification continue to constrain its business position, in S&P's opinion. S&P expects the company's increasing focus on the fast-growing real time processing and business outsourcing services to offset its declining content business, which is increasingly subject to risks from evolving technological and customer preferences. S&P's assessment of iEnergizer's financial risk profile reflects S&P's view that the company's cash flows are likely to remain volatile, given iEnergizer's small size and limited business diversity. S&P estimates that iEnergizer's leverage in terms of the ratios of debt to EBITDA and funds from operations (FFO) to debt will improve significantly in fiscal 2017 owing to the company's scheduled debt amortization and stabilizing profitability. S&P believes iEnergizer's asset-light service model will help it to generate sufficient free operating cash flow to meet its debt- servicing obligations over the next 12 months. The company has historically earned good margins from its high seat utilization. "The stable outlook reflects our expectation that iEnergizer will steadily improve its financial position, supported by a stable operating performance over the next 12 months," said Mr. Sharma. This will allow iEnergizer to maintain adequate headroom in its financial covenants over the period. S&P could lower the rating if iEnergizer's liquidity deteriorates, such that it faces risk of near-term financial covenant breaches. This could happen if iEnergizer losses a significant customer and the promoter's support become unlikely. S&P may raise the rating if iEnergizer improves its financial position such that its FFO-to-debt ratio exceeds 30% on a sustainable basis and it has adequate liquidity. This could happen if iEnergizer uses its free cash flows to reduce its leverage materially from the current levels. JD CONSTRUCTION: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned J.D. Construction (JDC) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS The ratings reflect JDC's small scale of operations and moderate credit metrics. In FY15, revenue was INR121m (FY14: INR101m), net leverage (Ind-Ra total adjusted net debt/operating EBITDAR) was 1.9x (2.4x) and EBITDA interest cover was 3.7x (2.4x). Its EBITDA margins have been at 5.1%-7.0% since FY13. However, the ratings benefit from the decade-long experience of JDC's proprietor in the civil contracting business. RATING SENSITIVITIES Positive: An increase in revenue along with maintenance of its credit metrics at current levels could result in a positive rating action. Negative: Sustained deterioration in credit metrics could result in a negative rating action. COMPANY PROFILE Incorporated in 2008 by Mr. Binapani Jena, JDC is a civil contractor and order supplier for the West Bengal State Electricity Transmission Company Limited, Odisha Power Transmission Company Limited, Mavin Switch Gear & Control Private Limited and other such organisations. JDC's ratings: -- Long-Term Issuer Rating: assigned 'IND BB-'/Stable -- INR25m fund-based working capital limits: assigned 'IND BB- '/Stable -- INR80m non-fund-based working capital limits: assigned 'IND A4+' JUPITER BUILDTECH: CRISIL Assigns 'B' Rating to INR90MM Loan ------------------------------------------------------------ CRISIL has revoked the suspension of its rating on the bank facility of Jupiter Buildtech Private Limited (JBPL) and has assigned its 'CRISIL B/Stable' rating to these facilities. CRISIL had suspended the ratings on December 28, 2015, as JBPL had not provided the necessary information for a rating review. The company has now shared the requisite information, enabling CRISIL to assign ratings to its bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 90 CRISIL B/Stable (Assigned; Suspension Revoked) The rating reflects JBPL's exposure to offtake and implementation related risks associated with its ongoing real estate redevelopment project and cyclicality in the real estate industry. These weaknesses are partially offset by extensive experience of JBPL's promoters in the real estate business. Outlook: Stable CRISIL expects JBPL to maintain a stable credit risk profile over the medium term on the back of its promoters' extensive experience in residential real estate industry. The outlook may be revised to 'Positive' if JBPL receives higher than expected customer advances and implements its ongoing projects on a timely basis leading to healthy cash accruals. The outlook may be revised to 'Negative' if there is a time and cost over-run in the on-going projects or significant pressure on the company's liquidity in case of delays in receiving bookings and/or customer advances, leading to pressure on revenues and profitability. Incorporated in 2009, Jupiter Buildtech Private Limited (JBPL) is engaged into real estate development in Agra and is a part of Maruti Builders group. The group was founded by Mr. Brijesh Vashistha, Mr. Rakesh Kumar Mangal, Mr. Arun Kumar Agarwal and Mr. Bharat Bhushan Goyal. JBPL is undertaking a residential project-Maruti Forest in Agra. KBK CHEM: ICRA Reassigns 'C' Rating to INR15cr Cash Loan -------------------------------------------------------- ICRA has reassigned the rating to INR15.00 crore cash credit facilities of KBK Chem Engineering Private Limited as [ICRA]C. ICRA has also reassigned the rating to INR17.35 crore non fund based facilities (reduced from INR30.0 crore) of KBK as [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 15.00 [ICRA]C reassigned Non-Fund-Based 17.35 [ICRA]A4 reassigned KBK had rating outstanding of [ICRA]BB (SO)/ negative outlook/ [ICRA]A4 (SO)1. These ratings were based on the strength of corporate guarantee provided by Shree Renuka Sugars Limited (SRSL) for the captioned facilities to the Banks. With its release dated March 21 2016, ICRA has downgraded the ratings assigned to SRSL from [ICRA]BB/ Negative outlook/ [ICRA]A4 to [ICRA]D. The reassigned ratings of KBK takes into account its parentage (being wholly owned subsidiary of SRSL) and financial support from the parent company through unsecured loans. The rating remain constrained by weak financial profile of the company due to limited EPC order execution over last few fiscals combined with minimal order book as on date. The company has reported cash losses over last five fiscals eroding net-worth completely with the company being dependent on its parent SRSL for financial support. Unsecured loans from SRSL stood at INR97.6 crore as on March 2015 as against negative networth of INR25.7 crore. Given subdued capex cycle for sugar industry and total dependence on parent for orders, which is experiencing a stretched liquidity position, KBK's operating income has declined sharply over last few fiscals. Company's ability to service its debt obligations in a timely manner remains contingent on timely support from its parent company. KBK is an EPC company providing turnkey solutions to distilleries, ethanol and bio fuel plants. The company was promoted in 1997 by well experienced technocrats who have worked in similar field with varied experience in distillery industry. KBK is provides services for turnkey Ethanol and Distillery plants and offers rectified spirits, extra neutral alcohol and Ethanol plants with water/ waste water / spent wash treatment systems, integrated evaporation plants, cogeneration power plants, Biogas and slop fired boilers and bio composting plants. It has designed, executed and commission projects in more than 15 countries including Thailand, Ethiopia, Philippines, Vietnam, etc. KBK has a workshop at Pirangut, Pune to provide 100% in house fabrication facilities for critical equipment such as distillation columns, reactors and other process equipment for ethanol plants. Guarantor's Profile Shree Renuka Sugars Limited (SRSL) is one of the largest private sector sugar manufacturers in the country, promoted by first generation entrepreneurs, viz. Murkumbi family, with a combined crushing capacity of about 42,000 TCD (across seven units) in India and 59,520 TCD (across four units) in Brazil. The plants in India are located in the states of Maharashtra and Karnataka. The company has significant presence in South Brazil through acquisitions of Renuka Vale do Ivai in March 2010 (100% owned) and Renuka do Brasil (formerly Euipav Acucar e Alcohol) in July 2010 (50.34% stake, which has been increased to 59.4% by March 2012). SRSL has been one of the first mills to be fully forward integrated into distillery (using molasses, a byproduct of sugar) and co-generation (based on bagasse) operations. SRSL mainly manufactures fuel grade ethanol that can be blended with petrol. Global distillery capacity of SRSL is 6,240 KL per day (KLPD) with Indian distillery capacity at 930 KLPD (630 KLPD from molasses to ethanol and 300 KLPD from rectified spirit to ethanol) and Brazil distillery capacity at 3,230 KLPD. The company has a total co-generation capacity of 584 MW (271 MW Indian operations and 313 MW Brazilian operations) with a total exportable surplus of 356 MW. The company also carries out refining activity, i.e. conversion of raw sugar to white sugar, from its 2,500 TPD unit at Haldia (West Bengal) and 3,000 TPD unit at Kandla (Gujarat). KRISHNA COTTEX: ICRA Reaffirms B Rating on INR4.50cr Loan --------------------------------------------------------- ICRA has reaffirmed an [ICRA]B rating to the INR4.50 crore fund based cash credit facility and INR1.55 crore term loan facility of Krishna Cottex Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit limit 4.50 [ICRA]B; Reaffirmed Term Loan limit 1.55 [ICRA]B; Reaffirmed The rating continues to factor in the KCI's modest scale of operations with financial profile characterized by thin profitability during the first year of operation which resulted in debt coverage indicators to remain low. The rating is also constrained by stretched capital structure resulted from high reliance on external debt. ICRA also notes vulnerability of profitability on account of the highly competitive and fragmented industry structure with low entry barriers leading to suppressed margins coupled with the vulnerability of the firm's profitability to movements in cotton prices on account of seasonality. The rating also takes into account the firm's exposure to regulatory risks, specifically with respect to minimum support prices and export restrictions. ICRA further notes that Krishna Cottex Industries is a partnership firm and any significant withdrawals from the capital account would affect its net worth and thereby its capital structure. The rating, however, positively factors in the significant experience of the management in the field of cotton ginning industry as well as the strategic location of the plant in the cotton producing belt of India giving it easy access to raw cotton. Krishna Cottex Industries was established in March 2014 as a partnership firm and commenced commercial production from October 2014. KCI is engaged in ginning and pressing of raw cotton. The manufacturing plant of the firm is situated at Jasdan in Rajkot District. The firm is equipped with 24 ginning machines and 1 fully automatic pressing machine having capacity to produce 200 cotton bales per day (considering 24 hours operations). Recent Results During the six months of operations during the financial year FY15, KCI registered net loss of INR0.07 crore on an operating income of INR16.36 crore. MADHUCON SUGAR: ICRA Reaffirms 'B' Rating on INR80cr Cash Loan -------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B to INR149.36 crore fund based facilities (earlier INR150.20 crore) and INR8.72 crore unallocated limits (earlier INR7.88 crore) of Madhucon Sugar and Power Industries Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 54.36 [ICRA]B; reaffirmed Cash Credit 80.00 [ICRA]B; reaffirmed Sugar Crop Loan 15.00 [ICRA]B; reaffirmed Unallocated Limits 8.72 [ICRA]B; reaffirmed The rating reaffirmation factors in the stretched liquidity position of the company as reflected by the high working capital utilization during the last one year. This has been due to increase in the working capital requirements given that the company held high inventory of sugar on account of the low sugar realizations during Nov, 2014-Jul, 2015. The rating is constrained by the weak financial profile of the company as reflected by the decline in the operating income, low profitability, high gearing and weak debt coverage metrics in FY2015. Further, low sugar realizations are likely to constrain the profitability from sugar operations during FY2016. The rating continues to be constrained by the vulnerability of sugar operations to agro-climatic risks, cyclicality inherent in the business as well as government policies relating to cane pricing and exports. Nonetheless, the rating is supported by the integrated nature of operations of the sugar unit with presence in cogeneration and newly commenced distillery unit which is expected to provide cushion during sugar downturn. The rating draws comfort from the limited demand risk for the cogeneration unit on account of the prevailing high energy deficit in the state of Telangana. ICRA notes that there has been an uptrend in the domestic sugar realization since Sep, 2015 given the expectations of lower domestic sugar output in SY16 owing to drought conditions in major producing states together with mandatory exports of 4 million MT notified by the GoI. Commencement of distillery in SY16 coupled with the improvement in the sugar realizations, if sustained are expected to result in improved profitability and debt coverage metrics going forward; however debt metrics are likely to be moderate. Going forward, the ability of the company to improve crushing levels and maintain prudent working capital management practices are the key rating sensitivities. Madhucon Sugar and Power Industries Limited (MSPIL) was incorporated in November 2002 as Madhucon Sugars Limited, with an objective to acquire 'The Palair Co-Operative sugars Limited', sugar plant in Khammam district (Palair, was established under co-operative sector in the year 1982). MSPIL has gradually enhanced the sugar capacity from 1,250 TCD to 2,000 TCD by FY07 and to 3,000 TCD by FY08 and 3,500TCD by FY09. The mill which was a standalone sugar unit forayed into production of power with a capacity of 24.2 MW from bagasse and coal in October 2008. The distillery unit with a capacity of 65 KPLD commenced operations in December 2015. Madhucon Sugar and Power Industries Limited (MSPIL) is part of the Madhucon Group of Companies which has interests in construction, granites, coal, sugar and power. It is promoted by MPL (27.59%) and MGL (63.07%) which together holds 91% in its equity share capital. N. B. COTEX: ICRA Assigns 'B' Rating to INR5.50cr Cash Loan ----------------------------------------------------------- ICRA has assigned the rating of [ICRA]B to the INR5.50 crore cash credit facility, INR1.49 crore term loan facilities and INR1.01 crore unallocated limits of N. B. Cotex Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.50 [ICRA]B assigned Term Loan 1.49 [ICRA]B assigned Unallocated Limits 1.01 [ICRA]B assigned The assigned rating is constrained by NBCPL's modest scale of operation and revenue de-growth witnessed in FY15; the limited value added nature of operations which coupled with the highly competitive and fragmented industry structure, arising from low entry barriers, are expected to pressurize the profitability margins. The rating is also constrained by the vulnerability of the firm's profitability, to the adverse movements in raw cotton prices, which are subject to seasonality and crop harvest and the firm's exposure to regulatory risks with regard to MSP for raw cotton and imposition of any restriction on cotton exports. The rating, however, favourably factors in long-standing experience of the promoters in the cotton industry and location advantage of the firm by virtue of its location in the cotton producing belt in Maharashtra. N. B. Cotex Private Limited (NBCPL) was incorporated in June 2011 by Mr. Nathalal Jani, Mr. Harsh Jani and Mr. Nitin Karwa who have a long-standing experience in the cotton industry. NBCPL is engaged in the business of cotton ginning and pressing of raw cotton. The manufacturing facility of the company is located at Jalagaon in Maharashtra and is currently equipped with thirty-six ginning machines and one pressing machine having a capacity to produce 250 bales per day. Recent Results During FY2015, NBCPL reported an operating income of INR61.48 crore and net losses of INR0.34 crore as against operating income of INR83.90 crore and profit after tax of INR0.14 crore during FY2014. Further, in 11M FY2016 (as per unaudited provisional financials), NBCPL reported operating income of INR55.61 crore and profit before depreciation and taxes of INR0.69 crore. NANDI COTTON: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Nandi Cotton Ginning Mill Private Limited (Nandi) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect Nandi's weak credit profile and short operational track record. Part of the INR7.01bn (revenue) KKP group, Nandi started operations in February 2015 and supplies most of its produce (80%) to its group companies. 9MFY16 financials indicate revenue of INR417.5m (FY15: INR131m). At FYE16, leverage is likely to have been around 6.2x (FY15: 26.6x) and EBITDA interest cover around 2.4x (1.4x). The ratings factor in the company's moderate liquidity position with average maximum utilisation of the fund-based facilities being 78.5% over the 12 months ended January 2016. The ratings also factor in the risks associated with agricultural commodity- based manufacturing business. The ratings, however, are supported by the company's promoter's two-decade-long operating experience in the textiles manufacturing business. RATING SENSITIVITIES Positive: Substantial growth in the top line with improvement in the EBITDA margin leading to a sustained improvement in the credit metrics could be positive for the ratings. Negative: Any deterioration in the EBITDA margin leading to sustained deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Established in 2015, Nandi is a cotton ginning and pressing company with installed capacity of 446,160 quintals raw cotton/year. Nandi's ratings: -- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable -- INR140m fund-based working capital: assigned 'IND BB-'/Stable; 'IND A4+' -- INR42.60m long-term loan: assigned 'IND BB-'/Stable NAVJIVAN COTTON: ICRA Reaffirms B Rating on INR11.75cr Loan ----------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B to the INR11.75 crore cash credit facility and the INR2.63 crore term loans of Navjivan Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Facility 11.75 [ICRA]B reaffirmed Term Loans 2.63 [ICRA]B reaffirmed The reaffirmation of rating takes into account NCI's moderate size of operations and weak financial profile characterized by low profitability levels, owing to the limited value addition in the business and the highly competitive and fragmented industry structure; its low return indicators, leveraged capital structure and weak debt coverage indicators. The rating also continues to remain constrained by the vulnerability of the firm's profitability to raw material prices which are subject to seasonality, and crop harvest; and the regulatory risks with regard to MSP fixed by GoI and restrictions on cotton exports. Further, ICRA notes that NCI is a partnership firm and any withdrawals from the capital account could impact the net worth and thereby the gearing levels; this remains a key rating sensitivity. The rating, however, continues to favourably factor in the experience of the firm's promoters in the cotton ginning industry and the advantage the firm enjoys by virtue of its location in the cotton producing belt of Saurashtra (Gujarat). Established in August 2013 as a partnership concern, Navjivan Cotton Industries commissioned operations on 10th February, 2014 and is engaged in cotton ginning, pressing and trading activities with a product profile comprising of cotton bales and cotton seed. The firm is promoted by Mr. Usman Kadiwar along with his family members who have an experience of around a decade in the cotton ginning industry vide their association with another firm engaged in the same line of business. Recent Results For the year ended March 31, 2015, the firm reported an operating income of INR159.13 crore and profit after tax of INR0.20 crore against operating income of INR16.27 crore and profit after taxation of INR0.01 crore for the year ended March 31, 2014. In the eleven month period ending February 29, 2016 (provisional financials) the firm reported an operating income of INR105.96 crore and profit after tax of INR0.20 crore. OCEAN CONSTRUCTIONS: ICRA Reaffirms B Rating on INR18cr Loan ------------------------------------------------------------ ICRA has reaffirmed the long-term rating of [ICRA]B to the INR18.00 crore cash credit, INR9.75 crore term loan, INR7.00 crore non-fund based and INR0.25 crore unallocated facilities of Ocean Constructions (India) Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Cash Credit 18.00 [ICRA]B; reaffirmed Fund Based-Term Loan 9.75 [ICRA]B; reaffirmed Non Fund Based 7.00 [ICRA]B ; reaffirmed Unallocated 0.25 [ICRA]B ; reaffirmed The reaffirmation of the rating is constrained by the stretched liquidity position of the company on account of delays in payments from the customers evidenced by consistently high utilization of the working capital limits. The company is also exposed to high geographic and sectoral concentration as it is involved in road, canal, aqueducts construction only in the state of Karnataka. The rating is further constrained by the low scale of operations within the civil construction business and the relatively low value additive nature of contracts leading to significant competition and consequent pressure on margins, however, ICRA takes note of the significant improvement in the operating income in FY2015 and 9M, FY2016 due to higher work execution during the period. The rating also factors in the high 'Total Outside Liabilities/Tangible Net Worth' of 3.94 times as on 31st March 2015 as the working capital requirements of the company are largely funded by creditors. The rating, however, takes comfort from the 16 years long experience of the promoters in the civil construction business and the established relationship with reputed clients resulting in repeat work orders. The rating positively factors in the large order book size of INR350.00 Crore as on 28th February 2016 that provides revenue visibility for the medium term, however, execution risk for such a huge pending order book remains. ICRA also takes note of the improvement in debt and coverage indicators in FY15 as reflected by improvement in NCA/Total Debt and interest coverage ration along with reduction in gearing. Going forward, the company's ability to execute orders in a timely manner and improve the liquidity position will remain the key rating sensitivities. M/s Ocean Constructions, a proprietorship firm, set up in 2006 and owned by Mr. Sharfuddin Ali Mulki, was taken over by Ocean Constructions India Private Limited (OCIPL, incorporated in 2008) in April, 2013. OCIPL, promoted by Mr. Sharfuddin Ali and his brothers, Mr. Inayath Ali and Mr. Abid Ali, undertakes civil contracts involving irrigation canals, aqueducts, site grading & levelling and road works in Karnataka mainly for government clients including Karnataka Neeravari Nigam Limited, Krishna Bhagya Jala Nigam Ltd, Public Works Department (Karnataka), National Mineral Development Corporation and Mangalore City Corporation. Ocean Constructions previously undertook sub- contracting works for private companies including Shapoorji Pallonji and Company Ltd and AMR India Ltd. Recent Results The Company reported an operating income of INR111.32 crore and a profit after tax of INR5.51 crore during FY2015, as compared to an operating income of INR41.97 crore and a profit after tax of INR1.76 crore during FY2014. As per provisional financials for 9 months period ended December 31, 2015, the company reported a profit before tax of INR8.80 crore on an operating income of INR99.21 crore. OMEGA INFRAENGINEERS: CRISIL Suspends B+ Rating on INR10MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Omega Infraengineers Pvt. Ltd. (OIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL A4 Cash Credit 10 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by OIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, OIPL is yet to provide adequate information to enable CRISIL to assess OIPL'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' OIPL, incorporated in 2009, is engaged in civil construction works (structural work, fabrication, heavy work, and erections) of steel and power plants primarily for private entities. The company is based in Chandigarh and is promoted by Mr. Raveljeet Singh Ruppal. P N PAPER: CRISIL Suspends 'D' Rating on INR86MM Cash Loan ---------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of P N Paper Mills Private Limited (PNPM; part of the PN group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 86 CRISIL D Term Loan 70.9 CRISIL D The suspension of ratings is on account of non-cooperation by PNPM with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PNPM is yet to provide adequate information to enable CRISIL to assess PNPM's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' For arriving at its rating, CRISIL has combined the business and financial risk profiles of PNPM and P.N. Pulp and Paper Industries (PNPPI). This is because both the entities, together referred to as the PN group, are in the same line of business, are managed by the same promoters, and have inter-company stake holdings. PNPM, incorporated in 2004 by Mr. Ajay Aggarwal, manufactures duplex card boards. PNPPI, established in 2008, manufactures writing and printing paper. The group's plants are in Uttarakhand. RANK CRANES: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Rank Cranes Private Limited's (RCPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects RCPL's small scale of operations, as evident from its revenue of INR190m in FY15 (FY14: INR167m), and the improvement in its working capital cycle to 65 days (144 days). However, the ratings are supported by RCPL's strong financial profile, as reflected in its robust operating EBITDA interest coverage of 10.6x in FY15 (FY14: 5.4x), net leverage of 0.9x (0.4x) and strong operating EBITDA margins of 8.8% (8.5%). Its liquidity was comfortable, with 88% average utilisation of its fund-based working capital limits during the 12 months ended March 2016. The ratings also benefit from its founders' experience of more than two decades in the crane manufacturing and assembly business. RATING SENSITIVITIES Positive: An improvement in the scale of operations and a substantial increase in profitability, along with maintenance of its credit metrics at current levels, could lead to a positive rating action. Negative: Deterioration in profitability, leading to deterioration in overall credit metrics, could lead to a negative rating action. COMPANY PROFILE RCPL was incorporated in 1983 by Mr. N Ramesh Babu and Mr. S A Narasimha Raju; it manufactures and assembles industrial cranes and other material handling equipment used in various industries such as engineering, cement, coal, steel and power. The company's manufacturing facility is located in Bollaram (Telengana). RCPL's ratings: -- Long-Term Issuer Rating: affirmed at 'IND BB+'; Outlook Stable -- INR13.7m fund-based working capital limits: affirmed at 'IND BB+'/Stable -- INR30m non-fund-based working capital limits: affirmed at 'IND A4+ RUBY MILLS: CARE Ups Rating on INR213.69cr LT Loan to BB- --------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of The Ruby Mills Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 213.69 CARE BB- Revised from CARE D Short term Bank Facilities 12.80 CARE A4 Revised from CARE D Rating Rationale The revision in the ratings of The Ruby Mills Limited (TRML) factors in regularization of debt servicing from December 2015. The ratings of The Ruby Mills Limited (TRML) continues to be constrained by the delay in receiving the clearance for the entire project despite completion stage of the real estate project, moderate overall gearing and the company's presence in the highly fragmented textile industry and cyclical real estate industry. The ratings continue to derive strength from the experience of the promoters in the textile industry and favourable location of the real estate project. The ability of the company to market and sell/lease the property in a timely manner, obtain the occupancy certificate for remaining area and ability to improve its profitability margin in textile business and its capital structure are the key rating sensitivities. The Ruby Mills Limited (TRML) was incorporated in 1917 and started its commercial operations in 1921. TRML is one of the oldest running textile mills in Mumbai and also has a presence in real estate development. TRML is a composite mill engaged in manufacturing cotton/ blended yarn and fabric at its plant in Dadar (Mumbai), Kharsundi and Dhamni (Raigad, Maharashtra). As on March 31, 2015, TRML has installed capacity of 21,768 spindles, 744 Autocoro and 128 looms at its plant located at Dhamni, while TRML is engaged in fabric processing activity at its other facilities located at Kharsundi. TRML is primarily engaged in manufacturing and selling of fabric (almost entire yarn produced is used for captive consumption) in the domestic market, around 99% of the total income generated from textile business is from the sales of fabric in the domestic market. In 2007, TRML shifted part of its operations from Dadar to Raigad resulting in availability of land at prime location for real estate development. TRML has developed an IT park namely "The Ruby" on the aforesaid land with total leasable/saleable area of 12.50 lakh sq ft on a total FSI of 2.66 times. The Ruby, IT Park, has 39 floors, of which office area comprises of top 36 floors. TRML is engaged in both selling and leasing of the area in IT Park. TRML also book the income from IT Park as transfer of the development rights at the time of receipt of the proceeds from the sale/lease of the floors in IT Park. RUDRA INFRADEVELOPERS: ICRA Suspends B Rating on INR25cr Loan ------------------------------------------------------------- ICRA has suspended the [ICRA]B rating for the INR25.00 Crore bank facilities of Rudra Infradevelopers Private Limited'. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. SAHARA INDUSTRIES: ICRA Reaffirms 'B' Rating on INR11cr Loan ------------------------------------------------------------ ICRA has reaffirmed [ICRA]B rating assigned to the INR11.00 crore1 cash credit facility and the INR1.93 crore term loan facility of Sahara Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 11.00 [ICRA]B reaffirmed Term Loan 1.93 [ICRA]B reaffirmed The reaffirmation of rating factors in SI's relatively small scale of operations and weak financial profile as reflected in its low profitability, highly leveraged capital structure and weak debt coverage indicators. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers; and the vulnerability of the firm's profitability to raw material (i.e. cotton) prices, which are subject to seasonality, crop harvest and regulatory risks. ICRA also notes that as SI is a partnership firm, any significant withdrawals from the capital account by the partners would adversely affect its net worth and thereby its capital structure. The rating however, continues to favourably factor in the longstanding experience of the partners in the business; favourable location of SI's manufacturing facility in Wankaner (Rajkot) giving it easy access to raw cotton and the stable demand outlook for cotton based products. Sahara Industries (SI) was established as a partnership firm in June 1997 and is engaged in the business of ginning and pressing of raw cotton. The firm's manufacturing facility is located at Wankaner, Rajkot in Gujarat and is equipped with 48 ginning machines with automatic feeders and 1 pressing machine. The firm is currently managed by four partners i.e. Mr. Ami Ali Kadiwar, Mr. Afzal Ibrahim Sipai, Mrs. Niyamat Sipai and Mrs. Sahenaj Sipai, who have a long standing experience in the cotton ginning business. Recent Results During FY 2015, SI reported an operating income of INR56.60 crore and profit after tax of INR0.17 crore as against an operating income of INR24.76 crore and profit after tax of INR0.12 crore during FY 2014. Further, during 9M FY16 (April 2014- December 2015) the firm registered sales of ~Rs. 31.34 crore (as per provisional financials). SAHIBZADA TIMBER: Ind-Ra Ups Long-Term Issuer Rating to 'IND BB-' ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Sahibzada Timber & Ply Private Limited's (STPPL) Long-Term Issuer Rating to 'IND BB-' from 'IND B'. The Outlook is Stable. The agency has also upgraded STPPL's INR200m fund-based limits (increased from INR120m) to 'IND BB-'/Stable/'IND A4+' from 'IND B'/'IND A4'. KEY RATING DRIVERS The upgrade reflects the improvement in STTPL's liquidity profile with 92.4% average use of its working capital limits for the 12 months ended March 2016, compared with the full utilisation for the 12 months ended September 2014. The improvement in liquidity is reflected in the improvement in interest coverage to 1.75x in FY15 (FY14: 1.63x). Also, the company's EBITDA margins remain moderate yet stable (FY15: 10.34%; FY14: 10.68%). However, STPPL's scale of operations remains small because of its presence in the highly fragmented and intensely competitive lumber industry. Revenue was INR331.6m in FY15 (FY14: INR358.01m) and financial leverage (Ind-Ra adjusted debt/operating EBITDAR) increased to 5.8x (3.62x) due to an increase in the long-term loans. The ratings, however, continue to be supported by over 20 years of operating experience of STPPL's promoters in the lumber industry. RATING SENSITIVITIES Negative: A decline in the operating profitability resulting in deterioration in the credit profile could lead to a negative rating action. Positive: A significant improvement in the scale of operations and/or credit profile on a sustained basis could lead to a positive rating action. COMPANY PROFILE Founded in 1992 as a proprietorship concern, STPPL was registered as a private limited company on 30 June 2012. The company is based in Mohali, Punjab and managed by Narinder Singh Sandhu and his son Jaspratap Singh Sandhu. STPPL processes and trades timber and ply. According to the interim numbers, it recorded total revenue of INR364.4m as at end-March 2016. SELVE CASHEWS: CRISIL Assigns 'B' Rating to INR50MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Selve Cashews (SC). The rating reflects the firm's small scale of operations, and subdued financial risk profile because of modest networth/high gearing/weak debt protection measures. These weaknesses are partially offset by its promoter's extensive experience in the cashew industry, and its moderate working capital requirement. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 35 CRISIL B/Stable Cash Credit 50 CRISIL B/Stable Foreign Letter of Credit 15 CRISIL B/Stable Outlook: Stable CRISIL believes SC will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if revenue and operating profitability increase significantly, resulting in a better business risk profile. Conversely, the outlook may be revised to 'Negative' in case of large debt-funded capital expenditure, weakening financial risk profile, or stretch in working capital cycle or decline in operating profitability, adversely affecting liquidity. SC, set up in 2008 and based in Cuddalore, Tamil Nadu, processes raw cashew nuts to cashew kernel. It is a proprietorship concern of Ms.Kalaiselvi and its operations are managed by her husband, Mr. Ravi. SHRI BALAJI: CARE Reaffirms 'D' Rating on INR7.18cr LT Loan ----------------------------------------------------------- CARE reaffirms rating assigned to the bank facilities of Shri Balaji Sahakari Soot Girni Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 7.18 CARE D Reaffirmed Rating Rationale The rating assigned to the bank facilities of Shri Balaji Sahakari Soot Girni Limited (SBSSG) factors in the on-going delays in debt servicing of its bank facilities. Shri Balaji Sahakari Soot Girni Limited (BSSG) was established as a co-operative society on January 21, 1991 but commenced commercial operation on May 25, 2012. BSSG is engaged in cotton spinning through open end spinning method with an installed capacity of 6624 spindles for manufacturing of cotton yarn with end user industries being power looms companies situated in and around the area of Washim, Maharashtra. The society is been promoted by 16 members with the key promoter beingMr. Babarao Sahebrao Patil. SIWAL INFRACON: ICRA Suspends B+ Rating on INR11cr Bank Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B+ on the INR11.0 crore bank lines of Siwal Infracon Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. SUBHASISH JENA: CRISIL Suspends B+ Rating on INR30MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Subhasish Jena Engineers & Builders Private Limited (SJEBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL A4 Cash Credit 30 CRISIL B+/Stable Long Term Loan 3.4 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SJEBPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SJEBPL is yet to provide adequate information to enable CRISIL to assess SJEBPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Established in 2012 as a Private Limited Company, SJEBPL is a Cuttack (Odisha) based Class 1 civil contractor. The company primarily undertakes construction of infrastructure projects. SUN HOSPITALITY: ICRA Reaffirms 'B' Rating on INR13cr Loan ---------------------------------------------------------- ICRA has reaffirmed long-term rating of [ICRA]B to the INR13.00 crore bank limits of Sun Hospitality and Service Apartments Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 13.00 Reaffirmed at [ICRA]B The reaffirmation of rating factors in the moderate execution risks associated with the project given that more than 31% of the total cost for 'Sun Escora' and 76% of the total cost for 'Sun Emprezza' yet to be incurred. Further, the projects have high market risk with sale for 55% of total saleable area for 'Sun Escora' and 96% for 'Sun Emprezza' yet to be tied up. The rating is also constrained on account of high funding risks given that large part of equity is yet to be brought in and part of the funding is to be met from customer advances, which are contingent on timeliness of bookings and collections from customers. Further debt, which is estimated to fund ~39% of the project cost for Sun Emprezza, remains to be tied up, thus adding to the funding risks. Taking into consideration that the proposed hotel under Sun Emprezza is the first hospitality project being undertaken by the promoters, the ability to achieve the desired occupancies remains crucial for the profitability of the project. The rating, however, favourably takes into account the long and established presence of the partners of the firm in the real estate business for more than three decades and clear land title for the projects currently under execution. Incorporated in April 2010, Sun Hospitality and Service Apartments Private Limited is a closely held private limited company, based out of Mumbai, Maharashtra. The company is currently executing two projects in Goa: One of the projects is residential project while the second project involves the development of retail, commercial and hotel space. The company is a part of Sun Group, a group of companies engaged in real estate development in cities such as Goa, Lonavala, Pune and Virar. The group has completed the development of ~2.76 lakh sq. ft. of real estate development, since its inception in 2005. The focus of the company has been on construction of holiday home/second home, villas, bungalows and apartments in the past few years. SUPREME NUTRI: ICRA Reaffirms 'B' Rating on INR7cr Cash Loan ------------------------------------------------------------ The long-term rating of [ICRA]B has been reaffirmed to the INR7.00 crore1 cash credit facility and INR4.50 crore term loan facility of Supreme Nutri Grain Private Limited. The short term rating of [ICRA]A4 has also been reaffirmed to the INR1.75 crore non fund based facilities of SNGPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Facility 7.00 [ICRA]B reaffirmed Term Loan 4.50 [ICRA]B reaffirmed Forward Contract Limit 1.75 [ICRA]A4 reaffirmed The reaffirmation of ratings takes into account the weak financial profile of the company, characterized by leveraged capital structure, average coverage indicators and moderate scale of operations. The ratings continue to take into account the high competitive intensity of the business, given the established presence of large organized players and that of unorganized players in the non-branded segment and the vulnerability of the company's profitability to raw material price fluctuations in view of the limited room for increasing the sales price (Maximum Retail Price) given the price elasticity of demand. The ratings, however, continue to favourably factor in the past experience of the promoters in the processed foods industry and the favourable demand prospects for instant noodles driven by the change in socio-demographics of the country. Supreme Nutri Grain Private Limited (SNGPL), promoted by Mr. Bharat Piparava, Mr. Nilesh Kapuriya, Mr. Sanjay Kapuriya and Mr. Mukesh Khatrani, was incorporated as a private limited company in May 2012 and commenced commercial production from 15th August 2013. The company is engaged in manufacturing of instant noodles packaged in units of 35 grams, 75 grams and 300 grams and has an installed capacity of 6200 TPA. The noodles are sold under the registered brand name of 'Zoopy' and are available in four flavours namely Mazedaar Masala, Mirch Masala, Gujarati Delight and Satvik Sizzle. Apart from its branded noodles, the company also sells non branded instant noodles packaged in various units depending on the requirements of the customers ranging from packs of 35 grams to 10 kg each. Recent Results For the year ended March 31, 2015, Supreme Nutri Grain Private Limited reported an operating income of INR40.73 crore and profit after taxation of INR0.32 crore as against an operating income of INR10.56 crore and profit after taxation of INR0.07 crore for FY 2014 (~7.5 months of operations as the commercial production commenced from 15th August 2013). For the six months period of FY 2016 from April 2015 to September 2015 (as per provisional financials), Supreme Nutri Grain Private Limited reported an operating income of INR15.89 crore and profit before depreciation and taxation of INR0.09 crore. SYNERGY REMEDIES: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Synergy Remedies Private Limited (SRPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect the nascent stage of SRPL's operations. The company is slated to start commercial operations by end-April 2016 and is currently manufacturing trial batches of active pharmaceutical ingredients (APIs). Therefore, stabilisation of operations and generation of positive cash flows are primary risks. However, the ratings are supported by the project's location advantage, as it located in an Andhra Pradesh Industrial Infrastructure Corporation (APIIC) industrial park, where basic infrastructure such as water, power, etc. is available. Its promoters' experience of over two decades in the pharmaceutical industry also benefits the ratings. RATING SENSITIVITIES Positive: Stabilisation of operations leading to sustained profits will be positive for the ratings. Negative: Inability to scale up in line with management's expectations, leading to liquidity stress, will be negative for the ratings. COMPANY PROFILE SRPL was incorporated in 2011 to manufacture APIs at its plant in Chittoor district (Andhra Pradesh); this has an annual installed capacity of 413 tonnes. SRPL's ratings: -- Long-Term Issuer rating: assigned 'IND B+'/Stable. -- INR47m fund-based working capital limits: assigned 'IND B+'/Stable/'IND A4' -- INR20m non-fund-based working capital limits: assigned 'IND A4' -- INR177m proposed term loan limits: assigned 'Provisional IND B+'/Stable -- INR153m term loan limits: assigned 'IND B+'/Stable -- INR133m proposed fund-based working capital limits: assigned 'Provisional IND B+'/Stable/'Provisional 'IND A4' TARA INFRATECH: CRISIL Suspends 'D' Rating on INR120MM Term Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Tara Infratech Limited (TIL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 120 CRISIL D The suspension of ratings is on account of non-cooperation by TIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TIL is yet to provide adequate information to enable CRISIL to assess TIL'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' TIL is engaged in real estate construction in Abohar (Punjab), where it is currently developing plots and villas. The saleable area of the project will be 1.27 million square feet (sq ft). The project will majorly comprise of plots and some villas, the bookings of which started in October 2011. The project shall also offer commercial space in the form of a small plot of 40,000 square feet. TUTICORIN COAL: CARE Lowers Rating on INR281cr LT Loan to D ----------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Tuticorin Coal Terminal Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 281.00 CARE D Revised from CARE B Short Term Bank Facilities 47.00 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings of the bank facilities and instruments of Tuticorin Coal Terminal Private Limited, takes into account the ongoing delay in servicing of debt obligations by the company due to its weak liquidity position. Tuticorin Coal Terminal Private Limited (TCTPL), a Special Purpose Vehicle (SPV), is promoted by ABG Group (holding 51% stake through ALBA Asia) and Louis Dreyfus Armateurs SAS (LDA, holding 49 % equity stake), a French conglomerate with its presence in international maritime transport for more than a century. TCTPL has been awarded the concession for development of North Cargo Berth-II (NCB-II Terminal) for handling coal and other bulk cargo at V O Chidambaranar Port (VOCP, earlier referred to as Tuticorin Port) on Design, Build, Finance, Operate and Transfer (DBFOT) basis. The NCB-II Terminal is being designed to handle a peak throughput of 14 million tonnes per annum. The said concession agreement (CA) was entered into on September 11, 2010 and was awarded for a period of 30 years following an international competitive bidding process based on highest revenue share (52.17%) offered by TCTPL. In addition, TCTPL would be paying VOCP Trust an annual license fee of INR1.29 crore. The total project cost of INR592.9 crore is proposed to be funded through debt of INR356 crore and the balance thorough equity (debt-toequity ratio: 1.50x). During FY15 (refers to the period April 1 to March 31), Tuticorin Coal Terminal Private Limited reported a Net Loss of INR 2.01 Crore on a Total Income from operations of INR 0.41 crore. TWINCITY SUNLIFE: Ind-Ra Suspends 'IND B+' LT Issuer Ratings ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Twincity Sunlife Pvt. Ltd.'s (TSPL) 'IND B+' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. The rating will now appear as 'IND B+(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for TSPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. TSPL's ratings: -- Long Term Issuer Rating: migrated to 'IND B+(suspended)' from 'IND B+'/Stable -- INR65m fund-based working capital limit: migrated to 'IND B+(suspended)' from 'IND B+' -- INR35m non-fund-based working capital limit: migrated to 'INDA4(suspended)' from 'IND A4' SOLICITATION DISCLOSURES Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer. UTTAM GALVA: Ind-Ra Cuts Long-Term Issuer Rating to 'IND D' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Uttam Galva Steels Ltd's (UGSL) Long-Term Issuer Rating to 'IND D' from 'IND BBB+' while resolving the Rating Watch Negative (RWN). The agency has also downgraded the ratings on UGSL's various bank facilities to 'IND D' from 'IND BBB+'/RWN and 'IND A2'/RWN. The downgrade is driven by UGSL's ongoing delays in debt servicing since February 2016. The delays are a result of the liquidity stress currently being faced by the company given the challenging operating environment and its inability to refinance its long-term borrowings according to its earlier proposed refinancing scheme. The agency has taken a consolidated view of UGSL and its subsidiaries. KEY RATING DRIVERS Delays in Debt Servicing: One of UGSL's lenders has confirmed to the agency about the company's continuous overutilisation of the fund-based lines in excess of 30 days in March 2016. This occurred due to the company debiting its cash credit account on the devolvement of a letter of credit in February 2016 for which it was unable to make payments when due. The company is also delaying servicing of its term debt obligations. The delays in debt servicing have been because of UGSL's constrained cash flows and inability to refinance its term debt obligations till date. In its previous rating action commentary dated 24 November 2015, the agency had stated that a further downgrade could result from UGSL's inability to refinance its term loans, leading to heightened liquidity pressure because of high debt servicing requirements and inadequate cash flow. The company is in talks with its lenders for refinancing under the 5/25 scheme, but there continues to be an uncertainty with regard to the timeline by when the same can be achieved. Deterioration in Operating Environment: The demand-supply situation for steel in India remained weak in FY16 due to muted industrial activity and large scale cheap imports. The prices of hot rolled coils (HRC) as well as downstream products steadily dropped till January 2016, despite the safeguard duty of 20% on HRC imports imposed in September 2015. Large-scale imports of HRC, cold rolled coils and colour coated steels into India and other markets from countries such as China and Russia kept global prices of these commodities at low levels. Against this backdrop, UGSL had contracted to import large quantities of HRC for deliveries in 3QFY16. Its landed cost rose significantly in the quarter due to the safeguard duty and as a result was much higher than HRC purchased by others on spot basis from international suppliers for delivery in this period. Moreover, in 3QFY16 the landed cost of imported finished goods (for instance cold rolled coils) was lower than that of HRC after safeguard duty, due to which traders and manufacturers who had entered into contracts for large-scale imports of HRC suffered inventory write-downs. No Benefit of Minimum Import Price: UGSL is not likely to benefit materially from the imposition of minimum import price (MIP) in January 2016 as this would primarily benefit integrated steel companies. While the landed cost for steel importers would be equal to MIP, domestic integrated steel producers will have the flexibility to price their offerings even below MIP, to remain competitive. As a result, the benefit that the company earlier had from the import of HRC (its main raw material) at competitive rates has now been largely eroded. Sharp Deterioration in Quarterly Financials: The expected improvement in UGSL's operating profitability from the cost reduction strategies implemented during FY16 was contingent on no further drop in product prices; whereas steel prices declined sharply in the year. As a result, UGSL's EBITDA margins declined to negative 8.36% in 3QFY16 from 7.6% in the earlier quarter (8.5% in 1QFY16). RATING SENSITIVITIES Three consecutive months of timely debt servicing can result in a rating upgrade. COMPANY PROFILE Incorporated in 1985, UGSL manufactures cold rolled sheets, cold rolled close annealed sheets, galvanised plain and corrugated sheets and colour coated lines. UGSL's ratings are as follows: -- Long-Term Issuer Rating: downgraded to 'IND D' from 'IND BBB+'; off RWN -- INR28.4bn long-term loans: downgraded to 'IND D' from 'IND BBB+'; off RWN -- INR4bn fund-based limits: downgraded to 'IND D' from 'IND BBB+'; off RWN -- INR24.4bn non-fund-based limits: downgraded to 'IND D' from 'IND A2'; off RWN -- INR1bn short-term debt: downgraded to 'IND D' from 'IND A2'; off RWN -- INR2bn standby limits: downgraded to 'IND D' from 'IND A2'; off RWN -- Proposed INR2bn non-fund-based limit: downgraded to 'Provisional IND D' from 'Provisional IND A2'; off RWN VARSHA INDUSTRIES: ICRA Reaffirms B/A4 Rating on INR40cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B and the short term rating of [ICRA]A4 to the INR40.11 crore fund based working capital facilities of Varsha Industries private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Working Capital Limits 40.00 [ICRA]B/A4 reaffirmed Unallocated Fund Based Limits 0.11 [ICRA]B/A4 reaffirmed The reaffirmation of the ratings take into account the company's weak financial profile characterized by thin profitability, leveraged capital structure and weak coverage indicators. The ratings further takes into account the high competitive intensity in the agro commodity business resulting from low entry barriers; exposure of firm's profitability to any adverse regulatory changes particularly those related to export incentives and availability of agro commodities as the same is linked to seasonality and crop harvest. The ratings, however, favourably factors in the extensive experience of the promoters in agro commodities business; its reputed clientele coupled with past relationships of promoters with clients and favourable location in Gujarat resulting in easy availability of raw materials. Varsha Industries Private Limited (VIPL) was incorporated in 2013 to carry out processing and trading of agro commodities such as grains, oil seeds, spices etc. The company is promoted by the Desai family with its promoters having vast experience in agro commodity business. VIPL has three sister concerns namely Archana Industries, Bhaskar Agro and Varsha Proteins engaged in trading of agro commodities in domestic market. The company is an ISO 22000:2005 certified company and is registered as Recognized Export House by the Ministry of Commerce & Industry and Spice Board (Government of India). The company is a member of the Indian Oilseeds and Produce Export Promotion Council and the Agricultural and Processed Food Products Export Development Authority (Government of India). Recent Results For the year FY 2015, the company reported an operating income of INR289.09 crore and profit after tax of INR0.23 crore. Further, for 11M FY2016 (provisional & unaudited), the company reported an operating income of INR226.53 crore and profit before depreciation & tax of INR1.53 crore. VERSATILE ALUCAST: ICRA Reaffirms D Rating on INR8.0cr Loan ----------------------------------------------------------- ICRA has reaffirmed the [ICRA]D rating to INR11.10 crore long term bank facilities of Versatile Alucast Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term, Fund based limits Term Loan 8.00 [ICRA]D (reaffirmed) Long Term, Fund based limits Cash Credit 3.10 [ICRA]D (reaffirmed) The rating reaffirmation continues to reflect delays by the company in servicing its debt obligations owing to tight liquidity conditions and strained cash flows. Due to elongated approval cycle from OEMs, the company has been operating at suboptimal capacity resulting in operating losses and weak debt coverage indicators. Also, on account of losses, the net-worth has eroded which has resulted in adverse capital structure. ICRA has taken a note of established track record of promoters in auto component industry with an experience of over four decades in auto component manufacturing business. VAPL's ability to regularise its debt repayment obligations along with improvement in capacity utilization and profitability remains key rating sensitivities. Incorporated in 2011, Versatile Alucast Private Limited (VAPL) has been formed to manufacture and supply aluminium die casting. The promoters have setup Greenfield aluminium casting facility (pressure die casting) in Kolhapur with an installed capacity of 1,300 MTPA. The company also has in-house machining facility. Total cost of the project was ~INR15.25 crore, which was funded through term loan of INR8.00 crore, equity of INR1.50 crore and rest through unsecured loan. VIGNESHWARA WOOD: ICRA Cuts Rating on INR1.5cr Loan to B+ --------------------------------------------------------- ICRA has revised long-term rating from [ICRA]BB-(Stable) to [ICRA]B+ for the INR1.50 crore fund based facilities of Sri Vigneshwara Wood Industries. ICRA has also reaffirmed short-term rating of [ICRA] A4 outstanding on the INR7.00 crore non-fund based facilities of the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based facilities 1.50 [ICRA]B+ downgraded from [ICRA]BB-(Stable) Non fund based facilities 7.00 [ICRA]A4 / reaffirmed While arriving at the ratings, ICRA has considered the consolidated operational and financial risk profiles of Sri Vigneshwara Wood Industries, Sri Harikrishna Saw Mill, Kandasamy & Co Saw Mill and Harishkanda Timber Private Limited. The entities are collectively referred to as the Group. The rating action takes into consideration the sharp decline in the turnover in 2014-15 on account of shortage in raw material following the ban in the export of raw timber logs by Myanmar which contributed to a significant share of the Group's raw material requirements. The ratings are also constrained by the stretched financial profile of the group characterized by high working capital intensity owing to high collection period and low profitability, with the margins vulnerable to volatility in both timber prices and foreign exchange rates. Further, the Group's small scale of operations limits the benefits from scale economies and the intense competition owing to low entry barriers and the dependence of timber availability on the trade regulations prevailing in the suppliers' market limits its bargaining power. The ratings however, favorably consider the experience of the promoter group in the timber trading business spanning over three decades and the established relationship with its suppliers, which ensures timely availability of timber for the group. Going forward, the Group's ability to improve its revenues by exploring new sources of raw material while protecting its profitability and efficiently managing its working capital cycle will be critical to improving its credit profile. Sri Vigneshwara Wood Industries, a sole proprietorship, commenced operations in the year 1995. The entity is primarily engaged in the import and trading of timber like Teak, Pincoda, Quila, Padouk, Purpleheart etc. The entity imports various varieties of timber from Myanmar, Papua New Guinea, South Africa and South America countries. The timber is re-sold in bulk to timber merchants/dealers mainly in Kerala and Tamil Nadu. The entity is a part of a group of four entities (engaged in timber trading), and the entity has been registered under Mr. K. Paramasivan. Recent Results The Firm reported a net profit of INR0.1 crore on an operating income of INR3.1 crore during 2014-15 as against a net profit of INR0.1 crore on an operating income of INR11.0 crore during 2013- 14. VIJAYANAGAR SUGAR: ICRA Reaffirms D Rating on INR338.69cr Loan -------------------------------------------------------------- ICRA has reaffirmed the long term rating at [ICRA]D to INR338.69 crore1 (INR387.49 crore) term loans, INR74.71 crore cash credit facilities and INR80.85 crore (earlier INR32.05 crore) unallocated limits of Vijayanagar Sugar Private Limited. ICRA has also reaffirmed the short term rating at [ICRA]D to INR55.75 crore non fund based facilities of VSPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 338.69 [ICRA]D; reaffirmed Cash Credit 74.71 [ICRA]D; reaffirmed Non Fund Based Facilities 55.75 [ICRA]D; reaffirmed Unallocated Limits 80.85 [ICRA]D; reaffirmed The ratings reaffirmation factors in the continuing delays in debt servicing by the company on account of continuous losses leading to stretched liquidity position. The ratings remain constrained by the weak financial profile as reflected by net losses, weak capital structure and debt coverage metrics; this resulted in VSPL2 rectification scheme under the CDR system in FY2015. Further, decline in the sugar realizations during Apr- Jul, 2015 is likely to impact the profitability and debt coverage metrics in FY2016. Further, the ratings are constrained by the vulnerability of sugar operations to agro-climatic risks, regulatory risk inherent in the sector with respect to government policies relating to cane pricing, sugar exports etc. However, ICRA continues to take note of the fully integrated sugar plant with both cogeneration and distillery units providing cushion to an extent during sugar downturn and low demand risk for power off-take in Southern India as reflected by energy deficit in the region as well as healthy tariffs. ICRA also notes that there has been an improvement in the cane crushing by 20% to 7.39 lakh MT during SY2015 which is further expected to increase in SY2016 backed by higher cane availability, thus supporting the revenues going forward. Further, expectations of lower domestic sugar output in SY2016 owing to drought conditions in major producing states together with mandatory exports of 4 million MT notified by the GoI have led to an uptrend in domestic sugar prices since Sep, 2015 and likely to support the profitability of the sugar mills to an extent in SY2016. Vijayanagar Sugar Private Limited (VSPL) was incorporated in 2007 by Mr. S Anand Reddy & Associates to set up an integrated sugar plant in Gadag District, Karnataka. VSPL took over unfinished sugar factory from Mrudagiri Sahakari Sakkare Karkhane Niyamit (a co-operative sugar mill), on lease for 30 years on Build, Own, Operate & Transfer (BOOT) basis in 2007 and set up an integrated sugar plant comprising of a 5000 TCD sugar plant, 35.5 MW co- generation power plant and 130 KLPD distillery. The project cost was around INR487.67 crore. The co-gen unit became operational in Apr 2010, sugar unit in Sep 2010 and distillery unit in Aug 2011. Recent Results In FY2015, VSPL reported an operating income of INR424.13 crore and net loss of INR52.29 crore as against an operating income of INR365.91 crore and net loss of INR87.24 crore in FY2014. VISMIT INFRASTRUCTURE: Ind-Ra Assigns 'IND B+' LT Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Vismit Infrastructure (Vismit) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The agency has also assigned the company's INR120m long-term loans an 'IND B+' rating with a Stable Outlook. KEY RATING DRIVERS The ratings reflect the financial and execution risks associated with Vismit's under-construction commercial complex in Vadodara, Gujarat. The ratings also take into account the risk of vacancy that this project carries as the firm has not yet been able to sell or lease any part of the property. Execution risks are partly mitigated by the project's advanced stage of completion, with more than 80% of construction work complete. Management expects to be able to sell or lease some part of the property by May 2016. However, the ratings benefit from the project's favourable location in Vadodara and Vismit's partners' experience of over 20 years in the real estate and construction sector. RATING SENSITIVITIES Positive: Completion and leasing of the complex as planned, leading to strong visibility of cash flows, will be positive for the ratings. Negative: Delays in the project's monetisation, impacting the company's debt service ability, will be negative for the ratings. COMPANY PROFILE Incorporated in 2012, Vismit is a partnership firm engaged in residential and commercial real estate development. It is currently constructing a five floor commercial building in Vadodara. WELLWISHER HOMES: CARE Reaffirms B+ Rating on INR24cr LT Loan ------------------------------------------------------------- CARE reffirms the ratings assigned to the bank facilities of Wellwisher Homes. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 24 CARE B+ Reaffirmed Rating Rationale The rating assigned to the bank facilities of Wellwisher Homes (WWH) continues to be constrained by modest booking status with low customer advances, nascent stage of project with WWH being a new entrant in the real estate market of Pune, cyclicality nature of industry and partnership nature of constitution. The rating derives strength from significant experience of promoters in executing real estate projects in Mumbai, strategic location of project with close proximity to IT hubs of Magarpatta City and Kharadi and receipt of approvals and clearance for the project. The ability of the firm to ensure timely execution of the construction activities, thereby enabling timely collection of receivables from sold units along with incremental bookings as estimated is the key rating sensitivity. WWH is a partnership concern established in September, 2011 to undertake the development of a residential project- Leisure Town at Hadapsar Pune. The firm is equally owned by the Mr. Chandrakant Bhansali led Well Wisher group and the Gupta family's Provisio group. The groups are in the business of real estate development since last two decades. WWH entered into an agreement with the Tupe family for developing land admeasuring 40,858 sq. mtrs. (4.40 lakh square feet (lsf)) on a revenue sharing basis as per which the land owners would be entitled to 45% of the sale proceeds. WWH is currently developing phase I of the said project (Leisure Town) comprising of 2 residential towers with a total saleable area of 2.11 lsf. WONDER CONSTRUCTION: ICRA Reaffirms B- Rating on INR10cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B- and the short term rating of [ICRA]A4 to the INR10.00 crore fund-based and non fund based bank facilities of Wonder Construction. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Cash Credit 10.00 [ICRA]B- reaffirmed Non Fund Based (sublimit of Cash Credit ) (1.00) [ICRA]A4 reaffirmed Rating Rationale The reaffirmation of the ratings takes into account the long standing experience of the partners in construction business and healthy profitability maintained by the firm over the last five years. The ratings are, however, constrained by firm's small scale of operations coupled with revenue degrowth in FY2015; modest current order book position; and tight liquidity position arising out of stretched receivables. The ratings also factor in the firm's exposure to sectoral, client and geographical concentration risks, as a majority of the orders in hand pertain to the building construction sector, undertaken for government clients, mainly in the Marathwada region of Maharashtra. ICRA also notes that WC is a partnership firm and any substantial withdrawals from capital account can impact the net worth and hence the capital structure of the firm. ICRA expects WC's revenues to improve in the range of 10-15% in FY2016 compared to that during FY2015 while the operating profitability is expected to remain healthy at past levels. However, the revenue visibility for FY2017 will depend on fresh incremental order booking considering the modest present order book position. The capital structure and coverage indicators are likely to remain in line with past trend. Incorporated in the year 2001, Wonder Construction is an Aurabgabad based civil contractor engaged in the business of construction of buildings and roads. The firm's presence is restricted to Maharashtra. It executes construction projects for government entities, primarily Public Works Department (PWD) and Municipal Corporations / Councils of various cities/towns, particularly in Marathwada region. Recent Results For the financial year ended March 31, 2016, the company reported an operating income of INR21.78 crore and profit after tax of INR1.22 crore as against an operating income of INR29.46 crore and profit after tax of INR1.00 crore for the financial year 2013-14. Further, as per unaudited provisional financials for 9MFY16, the company reported operating income of INR14.81 crore and profit before tax of INR0.87 crore. YASHASHREE TUBES: ICRA Cuts Rating on INR5.5cr LT Loan to D ----------------------------------------------------------- ICRA has revised the long term rating to [ICRA]D from [ICRA]B for the INR5.50 crore term loan facilities and INR3.20 crore cash credit facilities of Yashashree Tubes Private Limited. ICRA has also revised the short term rating to [ICRA]D from [ICRA]A4 for the INR1.00 crore short term non fund based limits of YTPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term, fund 3.20 Revised to [ICRA]D based limits- from [ICRA]B Cash Credit Long term, fund 5.50 Revised to [ICRA]D based limits-Term from [ICRA]B loans Short term, non 1.00 Revised to [ICRA]D fund based limits from [ICRA]A4 The rating revision takes into account delays in debt servicing by the company owing to tight liquidity condition. The financial risk profile of the company is characterized by working capital intensive operations on account of extended receivable cycle and high inventory levels, modest coverage indicators on account of thin cash accruals, small scale of operations and susceptibility of the margins to the volatility in steel prices. Further company faces stiff competition from other small scale players & cheaper imported substitutes though presence of large players is limited in the smaller sized tubes owing to low volume. ICRA has however taken note of the long standing experience of the promoters in the Indian seamless pipes and tubes industry and YTPL's close proximity to auto ancillary and boiler component manufacturers. Going forward, timely servicing of debt obligations, scaling up operations and profitability along with working capital cycle management will remain key rating sensitivity. Established in 2011, Yashashree Tubes Private Limited (YTPL/The Company) is into manufacturing of Cold Drawn Seamless Tubes ranging from outside diameter of 16 mm to 110mm. The company has its manufacturing facility at Ahmednagar (Maharashtra) with an annual capacity of 8400 MT on a two shift basis. The production facility started its commercial operations from February 2013. Recent results For FY2015, YTPL reported Profit after tax of INR0.10 crore on an operating income of INR19.15 crore as against Profit after tax of INR0.56 crore on an operating income of INR11.97 crore in FY2014. ========= J A P A N ========= TOSHIBA CORP: Expects Smaller Than Expected Loss for Fiscal 2015 ---------------------------------------------------------------- The Japan Times reports that Toshiba Corp. on April 26 revised its earnings forecast for fiscal 2015, projecting a smaller loss than previously estimated after booking profits from selling some noncore operations as part of restructuring. The Japan Times says the struggling electronics maker now expects a net loss of JPY470 billion for the year against a loss of JPY710 billion estimated in February. As for its U.S. nuclear power subsidiary Westinghouse Electric Co., Toshiba plans to write down the value of its shareholding in the unit by booking an asset impairment loss of JPY260 billion, the report discloses. About Toshiba The Troubled Company Reporter-Asia Pacific, citing Reuters, reported on July 22, 2015, that an independent investigation said in a report dated July 21 that Toshiba Corp. overstated its operating profit by JPY151.8 billion ($1.22 billion) over several years in accounting irregularities involving top management. The investigating committee said in a report filed by Toshiba to the Tokyo Stock Exchange that Toshiba President and Chief Executive Hisao Tanaka and his predecessor, Vice Chairman Norio Sasaki, were aware of the overstatement of profits and delay in reporting losses in a corporate culture that "avoided going against superiors' wishes," according to Reuters. The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that Toshiba Corp. President Hisao Tanaka and two other executives quit to take responsibility for a $1.2 billion accounting scandal that caused the maker of nuclear reactors and household appliances to restate earnings for more than six years. Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former president who was serving as adviser, also resigned, the Tokyo- based company said July 21, more than two months after announcing it was investigating possible accounting irregularities, according to Bloomberg. On March 28, 2016, Moody's Japan K.K. has downgraded Toshiba Corporation's corporate family rating and senior unsecured debt rating to B3 from B2, and its subordinated debt rating to Caa3 from Caa2. The rating outlook is negative. At the same time, Moody's has affirmed Toshiba's commercial paper rating of Not Prime. This rating action concludes the review for downgrade initiated on Dec. 22, 2015. On Feb. 9, 2016, Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit rating on Japan-based diversified electronics company Toshiba Corp. three notches to 'B+' from 'BB+' and its long-term senior unsecured debt rating two notches to 'BB' from 'BBB-'. The debt rating is two notches higher than the corporate credit rating, reflecting S&P's view that the probability of default in Toshiba's bonds is lower than that in its bank borrowings. S&P is keeping its long-term ratings on Toshiba on CreditWatch with negative implications, where S&P placed them Dec. 22, 2015, when it lowered the long- term corporate credit rating. S&P has affirmed its short-term corporate credit and commercial paper ratings on Toshiba. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. =============== M A L A Y S I A =============== 1MALAYSIA DEVELOPMENT: Defaults on $1.75 Billion Bond Issue ----------------------------------------------------------- Tom Wright at The Wall Street Journal reports that 1Malaysia Development Bhd. confirmed on April 26 that it defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). In a statement, 1MDB said there were no cross-defaults on another $1.75 billion bond and a $3 billion bond, the Journal relates. The Journal relates that on April 25, the International Petroleum Investment Corp., an Abu Dhabi fund that guaranteed 1MDB debt, said it would pay interest on the $1.75 billion bond, but only after it was declared in default. Interest of $50 million on that bond was due April 25, the Journal says. Malaysia's ringgit slipped 0.7% against the U.S. dollar on April 26 after 1MDB said it defaulted on the interest payment, according to the Journal. In recent months, traders have been little-concerned by the saga, expecting it to blow over and for a default to be avoided, the report notes. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib, Reuters related. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. ==================== N E W Z E A L A N D ==================== TRENCHMATE: In Receivership Sale -------------------------------- The New Zealand Herald reports that Trenchmate, a civil and construction in Papakura, is in receivership sale. The company is expected to attract immediate interest from buyers looking for a high quality investment, the report says. Placed in receivership earlier this month, Trenchmate is a hire business with a steady sales pipeline and a strong book of work, according to the Herald. Now taking expressions of interest, ABC Business Broker Graeme Finch is expecting competitive investors on this one off opportunity for a company in the construction industry to acquire a multimillion-dollar turnover business at a fire sale price, the Herald relates. "This business has about 40% market share and an ironclad reputation within the industry. It has one of the largest menu of products with over 140 variances in its line," the Herald quotes Mr. Finch as saying. He is marketing Trenchmate for urgent sale with expressions of interest closing on April 29, the report notes. According to the Herald, owner Tom Porter said the move to centralise the design and manufacture under one roof has reduced overheads and allowed the company to maintain quality standards that currently exceed the required safety standards. "Many firms can benefit from a purpose-built warehouse location like this and have the backing of 35 years of combined technical and management experience which is widely recognised within industry," the report quotes Mr. Porter as saying. The Herald relates that receiver Tom Rodewald from Rodewald Consulting said that the business is in a good position for a director with strong management skills to take control. Trenchmate reported an estimated Ebitda (earnings before interest, tax, depreciation and amortisation) to March 31, 2015 at NZ$725,000 with a turnover for the 2016 year end at NZ$2.4 million, the Herald discloses. The Herald says current turnover during the 2016 year has ranged from between NZ$150,000 to NZ$250,000 per month with the business on track heading into 2016 with an estimated stock value of NZ$6 million worth of specialised shoring product. "The business has the potential for someone in the front end of the construction industry to align with Trenchmate to provide a full service construction business, to help grow market share and capitalise on the booming construction market," the report quotes Mr. Finch as saying. CORELLI INTERNATIONAL: Collapses Into Receivership -------------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that the Corelli International Academic School of the Arts has fallen into receivership on April 7, 2016. Receivers Meltzer Mason has taken over the school which traded under Ardern Holdings Ltd., the report says. According to the report, the receivers said the property in receivership is the company's only undertaking, assets and property. Auckland, New Zealand-based Corelli International Academic School of the Arts was established in 2001. ===================== P H I L I P P I N E S ===================== SURIGAO CITY: Rural Bank Placed Under PDIC Receivership ------------------------------------------------------- The Monetary Board (MB) placed Surigao City Evergreen Rural Bank, Inc. under the receivership of the Philippine Deposit Insurance Corporation (PDIC) by virtue of MB Resolution No. 647 dated April 14, 2016. As Receiver, PDIC took over the bank on April 15, 2016. Surigao City Evergreen Rural Bank is a single-unit rural bank located at 3337 Borromeo St., Surigao City. Based on the Bank Information Sheet filed by the bank with the PDIC as of December 31, 2015, Surigao City Evergreen Rural Bank is owned by Alfredo T. Bonpin (25.13%), Mary Elizabeth B. Catubig (10.10%), Shirley B. Uy (7.70%), Jennifer Y. Ong (7.70%), Nelly B. Yang (7.70%), Cristine Y. Santillana (7.70%), Sarah D. Aleonar (7.25%), Eulalio P. Cortes (4.92%), Mamerto B. Dy (3.89%), Giselle Yang (3.89%), Monivic C. Perlas (3.63%), and Michael Anderson D. Bonpin (2.33%). The Bank's President and Chairman is Bienvenido C. Ilano. Latest available records show that as of December 31, 2015, Surigao City Evergreen Rural Bank had 1,062 accounts with total deposit liabilities of PHP11.3 million. Total insured deposits amounted to PHP11.1 million or 98.8% of total deposits. PDIC said that during the takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of PHP500,000.00. Depositors with valid deposit accounts with balances of PHP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except accounts maintained by business entities, or when they have outstanding obligations with Surigao City Evergreen Rural Bank, Inc. or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. PDIC will start mailing payments to these depositors at their addresses recorded in the bank by the last week of April 2016. Depositors may update their addresses until April 21, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises. For depositors that are required to file deposit insurance claims, the PDIC will start claims settlement operations for these accounts by the last week of April 2016. The PDIC also announced that it will conduct a Depositors- Borrowers' Forum on April 22, 2016. It enjoins all depositors to attend the Forum to verify with PDIC representatives if they are eligible for early payment. Those not eligible will be informed of the requirements and procedures for filing deposit insurance claims. The time and venue of the Forum will be posted in the bank's premises and announced in the PDIC website, www.pdic.gov.ph. Likewise, the schedule of the claims settlement operations, as well as the requirements and procedures for filing claims will be announced through notices to be posted in the bank premises, other public places and the PDIC website. ********* 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 ***