/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160620.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, June 20, 2016, Vol. 19, No. 120 Headlines A U S T R A L I A ADB GROUP: First Creditors' Meeting Slated For June 24 BARMINCO HOLDINGS: S&P Lowers Corporate Credit Rating to 'SD' BARMINCO HOLDINGS LTD: S&P Raises CCR to 'B-'; Outlook is Stable IG POWER: First Creditors' Meeting Set For June 24 JAMES HARDIE: Moody's Hikes Corporate Family Rating to Ba1 MIRABELA NICKEL: Placed Into Liquidation SIMPATICO CONNECTION: Collapses Into Voluntary Liquidation VIRGIN AUSTRALIA: S&P Affirms 'B+' CCR; Outlook Remains Negative WILLOW PROPERTY: First Creditors' Meeting Set For June 27 C H I N A GREENLAND HOLDING: Fitch Lowers IDR to 'BB+'; Outlook Negative HUA HAN: Fitch Assigns 'BB-' Rating on USD150MM Sr. Notes SUNRISE REAL: Delays 2014 Form 10-K to Complete New Audit H O N G K O N G NOBLE GROUP: S&P Lowers CCR to 'B+'; Outlook Negative I N D I A ABHIRAJ CORPORATION: CRISIL Assigns B Rating to INR100MM Loan AERO CANS: CRISIL Suspends 'D' Rating on INR150MM LT Loan AGARWAL ROADLINES: CRISIL Suspends B+ Rating on INR70MM Loan AMBEKESHWAR STEELS: Ind-Ra Assigns B+ Long-Term Issuer Rating ANANDHA INN: CRISIL Suspends 'D' Rating on INR188MM LT Loan ANKIT INTERNATIONAL: ICRA Reaffirms 'B' Rating on INR45.5cr Loan ARIHANTANAM LIFE: CRISIL Suspends B+ Rating on INR90MM Cash Loan ATLAS ALLOY: ICRA Suspends D Rating on INR14.90cr Bank Loan BALESHWAR SYNTHETICS: CRISIL Reaffirms B+ Rating on INR50MM Loan CHINTAMANI SHARMA: ICRA Suspends 'B/A4' Rating on INR10cr Loan DAULAT AGRO: CRISIL Suspends 'D' Rating on INR260MM LT Loan DEVIPRIYA ENTERPRISES: ICRA Suspends B+ Rating on INR19cr Loan EDGETECH AIR: Ind-Ra Suspends BB- Long-Term Issuer Rating GALAXY COTTON: ICRA Lowers Rating on INR14cr Cash Loan to D GROTECH LANDSCAPE: Ind-Ra Suspends BB+ Long-Term Issuer Rating HANSRAJ AGROFRESH: Ind-Ra Assigns B+ Long-Term Issuer Rating HAYWARD SYNTHETICS: ICRA Reaffirms B+ Rating on INR1.87cr Loan HYPNOTIK CLOTHING: CRISIL Raises Rating on INR67.5MM Loan to BB- JOSEPH RUBBERS: CRISIL Reaffirms 'B+' Rating on INR80MM Cash Loan K. V. CHINNAAIH: CRISIL Assigns 'B' Rating to INR35MM Term Loan KAIZEN COLD: CRISIL Suspends B- Rating on INR65MM LT Loan KALPATHARU LIQUOR: ICRA Suspends B+ Rating on INR15cr Bank Loan LEOLINE FOODS: CRISIL Assigns 'B' Rating to INR106MM LT Loan LUKE EXPORT: CRISIL Reaffirms B+ Rating on INR20MM Term Loan MAYAJAAL ENTERTAINMENT: CRISIL Suspends D Rating on INR75MM Loan MOHTA PLYWOOD: ICRA Suspends B/A4 Rating on INR23.5cr Bank Loan MOTHERS AGRO: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan MOUNT VELOUR: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan MPCR BROADCASTING: CRISIL Suspends B+ Rating on INR250MM Loan MURLIDHAR JEWELLERS: Ind-Ra Suspends B Long-Term Issuer Rating MUTHOOT AUTOMOBILE: CRISIL Suspends B+ Rating on INR50MM Loan NIKKI STEELS: Ind-Ra Suspends B+ Long-Term Issuer Rating OM PRINTING: CRISIL Suspends 'C' Rating on INR110MM Term Loan OMR MALL: CRISIL Lowers Rating on INR950MM Term Loan to 'D' PALLA TEXTILES: ICRA Suspends 'D' Rating on INR27cr Bank Loan PUPIL TREE: CRISIL Suspends 'D' Rating on INR170MM LT Loan RLS ALLOYS: CRISIL Suspends 'D' Rating on INR70MM Cash Loan ROSHAN ENTERPRISES: ICRA Suspends B+ Rating on INR20cr Bank Loan RUBBER O MALABAR: Ind-Ra Assigns D Long-Term Issuer Rating RUHAN TEPPICH: CRISIL Assigns B+ Rating to INR30MM Packing Loan S.V. POULTRIES: ICRA Suspends B+ Rating on INR15cr Bank Loan SABARI EXIM: ICRA Suspends 'D' Rating on INR37cr Bank Loan SAS AUTOMOTIVES: Ind-Ra Suspends BB Long-Term Issuer Rating SHREE SIDHBALI: CRISIL Reaffirms B Rating on INR200MM LT Loan SHRI SHRI: CRISIL Suspends 'B' Rating on INR58.5MM Term Loan SHUBHYAN MOTORS: CRISIL Reaffirms B- Rating on INR50MM Loan SHYAM COTTEX: ICRA Reaffirms 'B' Rating on INR4cr Cash Loan SIXTH ENERGY: Ind-Ra Assigns BB+ Long-Term Issuer Rating SOMNATH AGRO: ICRA Assigns 'B' Rating to INR5.0cr Cash Loan SREE PANDIAN: CRISIL Suspends 'B' Rating on INR137MM Cash Loan SRI KAMATCHI: CRISIL Suspends B+ Rating on INR57.5MM Cash Loan STAARLIGHT DESIGNS: CRISIL Reaffirms B+ Rating on INR30MM Loan SWAMY COTTON: CRISIL Suspends 'B' Rating on INR170MM Cash Loan THERMO PRODUCTS: CRISIL Suspends 'D' Rating on INR45.5MM LT Loan THIRUCHY STEELS: CRISIL Suspends B+ Rating on INR60MM Cash Loan THOPPIL CONTRACTORS: CRISIL Suspends B Rating on INR120MM Loan TOYOP RELIEF: ICRA Suspends B-/A4 Rating on INR32.5cr Loan TRANSMISSION CORP: ICRA Reassigns D Rating to INR350cr Loan TRIDENT AUTO: Ind-Ra Suspends IND BB- Long-Term Issuer Rating U.S. IMPEX: CRISIL Reaffirms 'B' Rating on INR100MM Cash Loan UBJ BROADCASTING: CRISIL Suspends B+ Rating on INR200MM Term Loan VIJAY KAMAL: ICRA Withdraws 'B' Rating on INR70cr Bank Loan J A P A N TAKATA CORP: Up to 30 Potential Investors Show Initial Interest S O U T H K O R E A DAEWOO SHIPBUILDING: Prosecution to Uncover More Accounting Fraud - - - - - ================= A U S T R A L I A ================= ADB GROUP: First Creditors' Meeting Slated For June 24 ------------------------------------------------------ Kimberley Andrew Strickland and David Ashley Norman Hurt of WA Insolvency Solutions were appointed as administrators of The ADB Group Pty Ltd on June 14, 2016. A first meeting of the creditors of the Company will be held at the offices of WA Insolvency Solutions, Level 10; 111 St George's Terrace, in Perth, Western Australia, on June 24, 2016, at 10:30 a.m. BARMINCO HOLDINGS: S&P Lowers Corporate Credit Rating to 'SD' ------------------------------------------------------------- S&P Global Ratings said it has lowered its corporate credit rating on Barminco Holdings Pty Ltd. to 'SD' from 'B-'. At the same time, S&P lowered the rating on the company's senior unsecured notes to 'D' from 'B-'. The recovery rating remains unchanged at '4'. The rating on the revolving facility remains unchanged at 'B+' and the recovery rating at '1'. The rating actions follow Barminco's repurchase of outstanding notes at less than par value. S&P views the totality of the repurchased notes over time as being akin to a de-facto restructuring, and accordingly, a default under S&P's criteria. In S&P's opinion, if Barminco had not repurchased the notes over time the ability to refinance may have been tested in an adverse environment. S&P acknowledges that the company has been meeting all its interest payments on time and in full since the notes were issued. Despite the de-facto restructuring, S&P continues to believe Barminco would have sufficient funds to meet its interest payments. The series of repurchases are not purely opportunistic, as in S&P's view the creditors received less than what was promised on the original securities. Typically, S&P views a tender offer below par conducted by a company rated at 'B-' or below as being a selective default according to S&P's criteria. Nonetheless, S&P recognizes that these buybacks of notes were conducted at a price above what S&P might expect in a conventional default. Despite the tough trading conditions facing the mining services industry, Barminco's operations are performing in line with S&P's expectation for the 'B-' rating. S&P also views its liquidity position as adequate. Indeed, upon completion of these buybacks, S&P views that Barminco has somewhat reduced its refinancing risk. S&P's current expectation is that it will restore its corporate credit rating back to 'B-' after the company completes the buybacks, assuming all other things remain equal. S&P's analysis will incorporate the company's restructured balance sheet, while still taking into account its challenging operating environment. BARMINCO HOLDINGS LTD: S&P Raises CCR to 'B-'; Outlook is Stable ---------------------------------------------------------------- S&P Global Ratings said that it had raised its long-term corporate credit rating on Barminco Holdings Ltd. to 'B-' from 'SD'. The rating outlook is stable. At the same time, S&P raised the rating on the company's senior unsecured notes to 'B-' from 'D' with a recovery rating of '4', and affirmed the rating on the revolving facility at 'B+' with a recovery rating of '1'. The rating actions follow the completion of S&P's review on Barminco's operations and capital structure after the company's recent note repurchases. Although S&P viewed the totality of the buybacks to date as a de-facto restructuring, the reduction in debt has somewhat reduced the company's refinancing risk. "The raising of the rating back to 'B-' reflects our view of Barminco's experience and track record in providing underground hard-rock mining services," said S&P Global Ratings credit analyst Sam Heffernan. "These strengths partly offset the challenging industry conditions and the company's relatively small scale and narrow business focus." Despite the tough trading conditions facing the mining services industry, Barminco has continued to manage the stability of its order book by rolling over expiring contracts and winning new contracts to replace lost ones. Indeed, the company's EBITDA has been relatively stable over the past few years, in contrary to some peers who experienced a material fall in earnings. Nonetheless, the concentration in relatively short-term contracts is an inherent risk in Barminco's business risk profile, in S&P's view. S&P expects the challenging conditions in the sector to continue amid ongoing volatility in commodity prices. As such, S&P expects contracts will continue to be competitively contested. Notwithstanding that, S&P expects Barminco to maintain a steady margin by cutting costs. The management is proactively managing the refinancing of the company's senior unsecured notes due in May 2018. S&P acknowledges that through the progressive buybacks, Barminco has somewhat reduced the refinancing risk of the senior unsecured notes. S&P expects the company to preserve adequate liquidity through prudent cash flow management and to restructure its balance sheet as part of its refinancing strategy. Mr. Heffernan added: "The stable outlook reflects our expectation that the company will continue to successfully manage its contract book, maintain its steady track record in providing underground hard-rock mining services, and will proactively manage upcoming refinancing risks." S&P could lower the ratings if the company's liquidity were to deteriorate, which is likely to be reflected in an accelerated reduction of its cash balance. This scenario could occur if a material number of contracts were to be terminated or suspended. An upward rating action would be dependent on: -- Barminco successfully completing the upcoming refinancing of the senior unsecured notes maturing in 2018; and -- The company sustaining stronger credit metrics; for example, debt-to-EBITDA at less than 5x. This scenario could occur if Barminco wins more contracts or reduces its debt materially. More importantly, support from its private equity shareholders for this leverage level will underpin a higher rating. IG POWER: First Creditors' Meeting Set For June 24 -------------------------------------------------- Christopher Hill, Grant Sparks and Martin Ford of PPB Advisory were appointed as administrators of IG Power (Callide) Ltd, IG Power Holdings Limited, IG Power Marketing Pty Ltd and InterGen Energy Holdings (Australia) Pty Ltd. A first meeting of the creditors of the Companies will be held at Level 27, 345 Queen Street, Brisbane, in Queensland, on June 24, 2016, at 10:00 a.m. JAMES HARDIE: Moody's Hikes Corporate Family Rating to Ba1 ---------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating of James Hardie International Finance Limited ("James Hardie") to Ba1 from Ba2 and its Probability of Default Rating to Ba1-PD from Ba2-PD. Concurrently, Moody's upgraded the company's $325 million 5.875% Senior Unsecured Notes due 2023 to Ba1 from Ba2 and affirmed its Speculative-Grade Liquidity (SGL) Rating at SGL-2. The rating outlook is stable. The upgrade of the Corporate Family Rating to Ba1 reflects Moody's expectation that James Hardie will continue to exhibit relatively conservative balance sheet management, financial policies that are now anticipated to be more aligned with the needs of the creditors, and disciplined yet growth oriented approach toward operations. This financial management has resulted in the company's ability to maintain strong credit metrics for a pro-longed period of time. Moody's projects debt to EBITDA to be maintained below 1.5x and EBITA/interest expense above 10x over the next 12-18 months. As of the fiscal year end 2016 (3/31/2016), debt/EBITDA stood at 1.3x and EBITA/Interest Expense at 10.8x. Furthermore, James Hardie is anticipated to turn free cash flow positive over the next year as it curtails its special dividend payouts while still maintaining its normal historic annual dividend payout. The following rating actions were taken: Corporate Family Rating, upgraded to Ba1 from Ba2; Probability of Default Rating, upgraded to Ba1-PD from Ba2-PD; $325 million Senior Unsecured Notes due 2023, upgraded to Ba1 (LGD4) from Ba2 (LGD4); Speculative-Grade Liquidity Rating, affirmed at SGL-2; Outlook is stable. RATINGS RATIONALE The Ba1 Corporate Family Rating benefits from James Hardie's relatively conservative balance sheet management, financial policies that are now expected to be more aligned with creditor interests, and deep-rooted industry expertise combined with solid operating strategy. Further strengthening the credit risk profile is the expected continued improvement in the company's already strong credit metrics over the next 12-18 months. James Hardie's financial policy sets a maximum of 2x net leverage ratio. Moody's projects debt to EBITDA to be maintained below 1.5x and EBITA/interest expense above 10x over the next 12-18 months. In addition, the reputation and conservative operating strategy that both have allowed James Hardie to grow into one of the largest fiber cement producers in the world, makes Moody's comfortable in the company's ability to manage its asbestos related liabilities on an ongoing basis. Moody's said, "however, the company's exposure to the asbestos liability remains a risk factor. We consider the asbestos liability to be mitigated by the terms of Amended & Restated Final Funding Agreement ("AFFA") and treat it as a non-debt liability. However, a certain percentage of the company's operating cash flows must be put toward the asbestos fund thereby limiting the cash flow available for the company's core business. At 3/31/2016, the undiscounted value of the asbestos liability was close to $767 million. Further, the asbestos liability combined with dividend distributions and share repurchases have led to negative tangible net worth and negative free cash flow generation. Going forward, we anticipate the company's to generate free cash flow as it stops paying special dividends and maintains a common dividend with an annual payout of around 50- 70% of net income. "James Hardie's Speculative-Grade Liquidity ("SGL") rating of SGL-2 indicates that the company's liquidity profile is good over the next 12 months. The SGL rating takes into consideration internal liquidity, external liquidity, covenant compliance, and alternative liquidity sources. James Hardie's cash flow generation from operations has always been relatively strong and it is able to cover its operating cash needs from internally generated cash. However, the company's elevated CAPEX in fiscal 2014 and 2015 and special dividends in fiscal 2015 and 2016 have resulted in negative free cash flow. Going forward, we anticipate James Hardie's free cash flow to be positive as it will primarily have maintenance CAPEX of around $80 - $100 million vs. $276 million of CAPEX in fiscal 2015 and $115 million in 2014. Dividend payouts are anticipated to be between 50-70% of net income for each of the next two years vs. $247 million in fiscal 2016 and $390 million in fiscal 2015. Cash balance is maintained at around $100 million." In addition to liquidity provided by cash flow generation, James Hardie also has access to a $500 million unsecured revolving credit facility (unrated by Moody's) that matures in 2020. At 3/31/2016, the company had $190 million drawn and remainder available for future advances. The company is anticipated to use the revolving credit facility for seasonal needs on an ongoing basis. The unsecured credit facility is governed by two maintenance covenants: interest coverage and debt leverage. James Hardie has to maintain an interest coverage ratio at 3.25x (at 3/31/16 the company was at 17.2x per the credit agreement calculation), leverage ratio has to be less than 3x (at 0.93x at 3/31/16). Looking forward for the next 12 to 18 months, James Hardie is expected to have ample room under its covenants. James Hardie also has good alternative liquidity as all of its debt is unsecured. Moody's said, "the stable outlook reflects our view that the company's financial performance is expected to continue to improve and that James Hardie will maintain a relatively conservative approach toward shareholder distributions." The ratings could be upgraded if James Hardie substantially reduces its asbestos liability. The ratings upgrade will also consider the company's business profile (narrow product offering, exposure to cyclical end markets) and minimal free cash flow generation both of which are limited when compared to many investment-grade issuers at the lower end of the Baa ratings range. The ratings could be downgraded if the company changes its financial policy to be more shareholder friendly. Further, any negative change in the asbestos liability could result in a downgrade. Also, EBIT/interest expense of less than 5x on a sustained basis would be considered a trigger for downgrade. James Hardie International Finance Limited ("James Hardie") is a wholly-owned subsidiary of James Hardie Industries plc, domiciled in Ireland, is a global manufacturer of fiber-cement products and systems for internal and external building construction applications primarily sold in the United States, Australia, New Zealand and the Philippines. The company's revenues and net income for fiscal 2016 ended March 31, 2016 were $1.7 billion and $244 million, respectively. MIRABELA NICKEL: Placed Into Liquidation ---------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Mirabela Nickel Limited has been placed into liquidation. Martin Bruce Jones of Ferrier Hodgson has been appointed liquidator of the company on June 13, 2016, the report discloses. The company entered receivership in September 2015. After the appointment of liquidators, the receivers of the company commenced negotiations to sell the company's assets, the report notes. Sources said that the base metals miner had cash of AUD150,000, adds Dissolve.com.au. The head office of Mirabela in Perth has reportedly been closed leaving its staff jobless, the report adds. Mirabela Nickel Limited -- http://www.mirabela.com.au/-- was an Australia-based mineral resource company engaged in mining, production and sale of nickel concentrate. The Company's principal asset is the 100%-owned Santa Rita nickel sulphide mine in Bahia, Brazil. The Santa Rita mine is located approximately 360 kilometers south-west of Salvador and approximately six kilometers from the town of Ipiau. The Company also has a portfolio of prospective nickel targets in Brazil, including an underground mineral resource at Santa Rita. Mirabela Nickel Limited was placed under Voluntary Administration on Sept. 24, 2015. Martin Jones and Darren Weaver of Ferrier Hodgson were appointed as Joint and Several Administrators. On Oct. 28, 2015, Martin Madden, Scott Langdon and Richard Tucker of KordaMentha were appointed Receivers and Managers of the Company. SIMPATICO CONNECTION: Collapses Into Voluntary Liquidation ---------------------------------------------------------- Eloise Keating at SmartCompany reports that an event company that had sold tickets to a series of motivational seminars with actress Reese Witherspoon has collapsed into voluntary liquidation. Stanley Morgan Accountants were appointed as external managers to the The Simpatico Connection Pty Ltd, organisers of the Simpatico Connection Conference, on June 17, SmartCompany discloses. The Simpatico Connection had been selling tickets to its conference with Witherspoon for up to AUD2,500 a piece. For a price tag of AUD1,997, attendees could purchase the "The Delegate" package to the July event, which included the two-day seminar, meals and drinks. An extra AUD500 secured attendees preferred seating, an invitation to a VIP reception and a photo with the Hollywood star. However, the event, which was reportedly targeted at businesswomen in "leadership roles", was mysteriously cancelled on June 15, according to Fairfax, SmartCompany relays. Brendan Nixon, director of Stanley Morgan Accountants, told SmartCompany it is too early to tell what led to the company entering voluntary liquidation and this will be something the voluntary liquidators examine over the next few weeks. SmartCompany relates that Mr. Nixon said he is not in a position to comment on why the conference was cancelled or The Simpatico Connection's trading history. According to the report, Mr. Nixon said Stanley Morgan Accountants will contact all creditors of the company, including ticket holders to the event, "as a matter of priority", adding that any ticket holders who are not contacted by Stanley Morgan Accountants by post within the next fortnight should contact the firm directly. "We will be collecting the company's books and records and commence our analysis as part of our investigations, consistent with our responsibilities under the Corporations Act," the report quotes Mr. Nixon as saying. "We will be convening a meeting of creditors over the next few weeks." VIRGIN AUSTRALIA: S&P Affirms 'B+' CCR; Outlook Remains Negative ---------------------------------------------------------------- S&P Global Ratings said that it had affirmed the 'B+' corporate credit rating on Virgin Australia Holdings Ltd., as well as S&P's 'B-' rating and recovery rating of '6' on Virgin's U.S. 144A/Reg- S senior unsecured notes. The outlook remains negative. "The negative outlook reflects our assessment of Virgin's limited buffer at the current rating level to absorb volatile fuel prices, foreign exchange movements, and variable passenger demand," said S&P Global Ratings credit analyst Graeme Ferguson. "In our opinion, Virgin's recently announced capital restructure is sufficient to alleviate its near-term funding requirements." The capital restructure includes Virgin raising AUD852 million of new equity through an underwritten, nonrenounceable, pro rata, entitlement offer. Virgin would also receive AUD159 million of additional new equity from a placement to Hainan HNA Innovation Ventures Co. Ltd. Part of the proceeds will be used to repay a recent AUD425 million shareholder loan. In S&P's opinion, the proceeds of the equity raising should be sufficient to cover Virgin's near-term funding needs. However, S&P believes there is limited headroom within the current rating. While S&P's rating incorporates a softening domestic market and ongoing challenges to Virgin's international operations, there is limited financial buffer at the current rating level to absorb downside factors beyond S&P's base-case operating scenario. In S&P's opinion, Virgin remains sensitive to volatile fuel costs, exchange rate movements, and variable passenger demand. S&P notes that the introduction of HNA Innovation to the share register and transfer of a substantial part of Air New Zealand's equity interest to Nanshan Group provide greater clarity over Virgin's ownership structure. S&P continues to view shareholder support as a key source of funding, as prevailing credit market conditions may render bank or debt capital markets issuance unfeasible. Virgin has also announced a range of additional restructuring initiatives targeting fleet and network optimization; operating efficiencies; maintenance and engineering; and, procurement and supply chain. The airline anticipates that it will incur cash restructuring costs of AUD200 million to AUD250 million over the period to the year ending June 30, 2019. S&P views these restructuring initiatives as necessary to restoring the airline's profitability. However, S&P considers these cash restructuring costs as recurring operating expenses, and therefore, include them in S&P's calculation of EBITDA. Virgin Australia's nonlabor operating and capital expenses, as well as financing obligations, are substantially denominated in U.S. dollars. The depreciation of the Australian dollar, together with existing fuel hedges, has offset much of the benefit accruing from lower fuel prices. In addition, a combination of more cautious consumer spending patterns and increased penetration of the business market has affected the airline's working capital. In both cases, customer payments are generally being received closer to the date of departure, thereby raising working capital demands. The shift toward business travelers has also prompted capacity on international routes to be temporarily reduced as new business class seats are installed on the long-haul fleet. Currency deterioration and the re-phasing of heavy maintenance across a substantial part of the group's fleet have also materially affected the airline's capital expenditure. While the operating environment remains mixed, Virgin has transformed itself into a tough competitor against Qantas Airways Ltd. (BBB-/Stable/A-3) within the Australian domestic market, which S&P views as having duopoly-like characteristics. Over the past few years, Virgin has solidified its market share. However, Virgin Australia's share of the domestic profit pool remains small relative its market share, and the group's international business continues to weigh on the rating. S&P has revised its assessment of Virgin Australia's liquidity profile to adequate from less than adequate. While S&P expects Virgin's operating performance and near-term funding needs to have stabilized, S&P believes there is limited buffer at the current rating level to absorb deterioration in the operating environment beyond what is already factored into S&P's base-case operating scenario. Virgin's operating performance remains highly sensitive to volatile fuel costs, exchange rate movements, and variable passenger demand. S&P could lower the rating if it expects the airline's debt-to- EBITDA to be sustained above 5x. A return to more intense domestic market competition, unfavorable currency movements, higher fuel costs, or unforeseen capital requirements could cause Virgin's credit metrics to weaken. Mr. Ferguson added: "A stable outlook would be contingent upon the effective execution of the group's growth strategy and continuing progress in improving key credit metrics, such that we expect the airline's debt-to-EBITDA will remain comfortably below 5x." Also supporting rating stability would be a high degree of confidence in Virgin's shareholders providing ongoing, timely, and coordinated shareholder support during periods of financial stress. WILLOW PROPERTY: First Creditors' Meeting Set For June 27 --------------------------------------------------------- Gavin Moss of Chifley Advisory was appointed as administrator of Willow Property Services Pty Ltd on June 15, 2016. A first meeting of the creditors of the Company will be held at the Boardroom of Chifley Advisory, Suite 3.04, Level 3, 39 Martin Place, in Sydney, NSW, on June 27, 2016, at 11:00 a.m. ========= C H I N A ========= GREENLAND HOLDING: Fitch Lowers IDR to 'BB+'; Outlook Negative -------------------------------------------------------------- Fitch Ratings has downgraded Greenland Holding Group Company Limited's (Greenland) Long-Term Foreign- and Local-Currency Issuer Default Ratings to 'BB+' from 'BBB-'. The Outlook is Negative. Fitch has also downgraded Greenland's senior unsecured rating and the ratings of all outstanding bonds to 'BB+' from 'BBB-'. The downgrade of the IDR follows the downgrade of Greenland's standalone rating to 'BB' from 'BB+' and the incorporation of a one-notch uplift, reflecting its moderately strong linkage with its parent, the State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai Municipality, in line with Fitch's Parent and Subsidiary Linkage criteria. The downgrade of the standalone rating is driven by Greenland's persistently high leverage, which will limit its financial flexibility to face potential headwinds in the domestic property or credit markets. Greenland's leverage, as measured by net debt-to-adjusted inventory, reached 66% at end-2015, higher than our previous expectation of 58%. Fitch believes Greenland's leverage will remain above 60% in 2016 and fall to the high-50% range only in 2017 after receiving the bulk of its uncollected sale proceeds. Furthermore, Greenland's non-property businesses are at early stages of development and require significant initial investment outlay, which will also push up Greenland's overall leverage. The Negative Outlook reflects the uncertainty in Greenland's pace of deleveraging, which depends on management's efforts to collect substantially all of its current uncollected sales proceeds by 2017. Failure to do so may result in its leverage sustained above 60%, a level at which Fitch may consider taking further negative rating action. KEY RATING DRIVERS Deteriorating Financial Metrics: Greenland's leverage rose to 66% at end-2015 from 62% at end-2014 due to weaker cash collection. This level of leverage is comparable with Fitch-rated China homebuilders rated in the mid-to-high 'B' category. Fitch believes Greenland's leverage may stay in the high-50% range even after receiving payment in 2017 for the bulk of its uncollected sale proceeds. This is because it had relied on supplier credit for its inventory build-up and this may reverse in 2017 upon project completion. Greenland's operating efficiency, as measured by total contracted sales/total debt, decreased to 1.0x in 2015 from 1.3x in 2014 due to higher debt. Slow Sales Collection: Fitch estimates that Greenland's cash collection rate in 2015 was only 59%, slightly higher than 58% in 2014, but far behind the industry average of above 80%. This is mainly because almost 50% of its contracted sales are from commercial properties, where cash collection is much slower than that of residential property sales and exposes Greenland to payment delays from small and medium enterprises, which have been hit harder by China's slower economic growth and the downturn in the commodity market. Residential property developers typically collect the full sales amount within three months of sales, but commercial property developers collect 50% of the sales in the first year and have to wait until delivery - usually three to five years after sales - to collect the balance. Greenland's cash collection rate for residential sales is also below the industry average. Deleveraging Hinges on 2017 Collection: Greenland's high leverage is mitigated by the sizable off-balance-sheet uncollected sales proceeds from both residential and commercial property sales, which exceeded its annual sales at end-2015. Sales from commercial properties surged in 2014 and 2015, and management expects cash collection to significantly improve in 2017 when these projects are delivered. Leverage is likely to trend down towards 55% if the expected collection materializes. Non-property Businesses Drive Leverage: Fitch believes Greenland's non-property businesses are still immature and need to be funded with cash flow from the company's property business. Greenland has made extensive investments in financial institution, consumer goods and infrastructure industries in 2015, which contributed to the increase in Greenland's leverage. In addition, Greenland's smaller equity placement in 2016 means it may need to fund a CNY10bn investment in the financial institutions business via internal cash or external debt, which will increase leverage further. Benefits of Large Scale: Greenland is the second-biggest property developer in China by contracted sales, trailing only China Vanke Co., Ltd. (BBB+/Stable). Greenland had contracted sales of CNY230bn in 2015, down 4% from 2014. The company's property development business is well diversified over 40 cities in China and overseas. Greenland's management says it intends to sustain a property contracted sales of over CNY200bn in the next few years. Diversified Funding Channels: Greenland has enhanced its onshore funding channels after gaining a listing on the Shanghai stock exchange in July 2015 by injecting assets into a listed company. Greenland plans to place out shares in this listed entity, although in May 2016 it reduced the amount to be raised to CNY15.7 bil. from CNY30 bil. Greenland in March 2016 also announced it is exploring injecting its hotel assets into a hospitality REIT that may be listed on the Singapore Exchange. In early 2016, Greenland completed a CNY10bn domestic bond issuance to augment its funding needs and reduce its borrowing costs. The company also established offshore funding channels through its 59%-owned subsidiary Greenland Hong Kong Holdings Limited. Rating Uplift for Parental Support: Greenland has a moderately strong linkage with the Shanghai government. It will continue to be one of the major contributors to Shanghai's tax revenue and remain the largest Shanghai-based property company. Fitch believes the Shanghai SASAC, which owns 46% of Greenland, will continue to be the company's biggest shareholder and exert significant influence on Greenland's ability to acquire quality sites for development; even though its stake is likely to fall after the company's planned share placement in 2016. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Greenland include: -- Contracted sales to fall 22% in 2016 and remain flat in 2017-2018. -- Sales of commercial property to form 60% of total sales and residential sales will make up the remainder in 2016-2018 -- Land premium of around CNY60bn-65bn in 2016-2018, or around 35% of current year contracted sales. Assume cash is paid out in the same year as incurred. -- CNY15.7 bil. to be raised via share placement in 2016. RATING SENSITIVITIES Positive: The Outlook for the standalone ratings may be revised to Stable if the negative guidelines are not met in the next 12 months. Negative: Future developments that may, individually or collectively, lead to negative rating action on the ratings include: -- Net debt/adjusted inventory sustained above 60% (Fitch estimate for 2015: 66%) -- Property EBITDA margin sustained below 15% (Fitch estimate for 2015: 17%) -- Contracted sales/total debt sustained below 1x (Fitch estimate for 2015: 1.0x) -- Evidence of weakening support from parent In arriving at debt ratios for the property segment, Fitch allocates a part of the company's debt to its energy business to maintain the latter's net working capital/net debt ratio at 1.5x and the rest of the debt to the more profitable property business. FULL LIST OF RATING ACTIONS Greenland Holding Group Company Limited -- Long-Term Foreign-Currency IDR downgraded to 'BB+' from 'BBB-'; Outlook Negative -- Long-Term Local-Currency IDR downgraded to 'BB+' from 'BBB-'; Outlook Negative -- Senior unsecured rating downgraded to 'BB+' from 'BBB-' -- USD3000 mil. medium-term note programme downgraded to 'BB+' from 'BBB-' -- USD2000 mil. medium-term note programme downgraded to 'BB+' from 'BBB-' Issued by Greenland Hong Kong Holdings Limited with keepwell from Greenland Holding Group Company Limited -- USD700 mil. 4.75% senior notes due 2016 downgraded to 'BB+' from 'BBB-' -- USD500 mil. 4.375% senior notes due 2017 downgraded to 'BB+' from 'BBB-', with additional equity interest undertaking agreement from Greenland Holding Group Company Limited -- CNY1.5 bil. 5.5% senior notes due 2018 downgraded to 'BB+' from 'BBB-' Issued by Greenland Global Investment Limited and guaranteed by Greenland Holding Group Company Limited -- USD500 mil. 3.5% senior notes due 2017 downgraded to 'BB+' from 'BBB-' -- USD400 mil. 3.75% senior notes due 2019 downgraded to 'BB+' from 'BBB-' -- USD600 mil. 5.875% senior notes due 2024 downgraded to 'BB+' from 'BBB-' HUA HAN: Fitch Assigns 'BB-' Rating on USD150MM Sr. Notes --------------------------------------------------------- Fitch Ratings has assigned Hua Han Health Industry Holdings Limited's (Hua Han, BB-/Stable) USD150 mil. 7.00% senior notes due June 16, 2019, a final rating of 'BB-'. The notes are rated at the same level as Hua Han' senior unsecured rating because they are regarded as direct and senior unsecured obligations of the company. The assignment of the final rating follows the receipt of documents conforming to information already received, and the final rating is in line with the expected rating assigned on June 13, 2016. KEY RATING DRIVERS Established, Profitable Business: Hua Han is one of the largest manufacturers of traditional Chinese medicine (TCM) for women's health in China. Its top five products accounted for 67% of total sales in the financial year ended 30 June 2015 (FY15). The five products are all exclusive to the company and are included in the National Medical Insurance Catalogue or Essential Drug List, which allows buyers to be reimbursed for their purchases via the national medical insurance programme. The company's existing core products have enjoyed high margins over the years and are subject to long patent protection. It plans to expand its product range with the launch of new biotechnical medicines in FY17, for which it is seeking approval from the China Food and Drug Administration. Hua Han's EBITDA margin was at a record high of 44% in FY15; Fitch expects it to narrow to 30%-35%, in line with historical trends. Strong Financial Profile: Hua Han has maintained a net cash position for more than five years, driven by steady operating cash flow generation and frequent equity issuance. Fitch expects the company to maintain its net cash position even as it embarks on a phase of high capex to construct new hospitals. Diversification into Hospital Services: Hua Han began its foray into hospital services in 2014 by signing agreements with local governments to manage the supply chain of hospitals under a Trust-Investment-Operation-Transfer (TIOT) model. By 1H15, Hua Han had agreed to manage the supply chains at eight hospitals with 5,151 beds. The four hospitals that have started operations contributed revenue of HKD476m in 1HFY16 and Fitch expects this contribution to surge to about HKD700m in FY16, as the business expands. Under the TIOT model, which usually has a term of 20 years, Hua Han makes a fixed investment in the hospital to improve medical facilities and clinical services. In return, it receives management fees and income earned from managing the supply chain without consolidating the hospital's financial results. The management fee is a fixed percentage of the hospital's total revenue while income is derived from the revenue earned by certain departments of the hospital. Business Mix Drives Margins: Hua Han achieved EBITDA margin of 24% from hospital supply chain management in FY15, which is likely remain stable in the future. However, the increasing revenue from hospital services may result in overall margin contraction, as the core pharmaceutical business generates higher margins. Fitch believes the hospital services venture provides Hua Han with a stable profit source, but it is exposed to adverse changes in regulation and competition in China's rapidly evolving healthcare industry. High Capex: Hua Han has begun constructing three new hospitals with 2,560 beds in Guizhou Province, with the bulk of the capex spend in FY16 to FY18, to expand into the majority-owned model from the TIOT model. Under this model, Hua Han will manage a much larger portion of the hospitals' operations and thus, is likely to achieve higher financial returns. Fitch does not expect Hua Han to aggressively expand the majority-owned hospital portfolio given the high capital costs, fewer opportunities, and the company's limited track record in the business. Small Scale Constrains Rating: Hua Han's rating is constrained by its small operating scale with annual EBITDAR of less than USD100m compared with other global healthcare peers. Branching out into hospital services and expanding its bio-technical products will allow the company to grow at a much more rapid rate and diversify revenue concentration risk, though it exposes Hua Han to execution and regulatory risks. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Capex to be HKD800 mil. in FY16, HKD2 bil. in FY17, HKD1.5 bil. in FY18 -- 10% annual growth for hospital revenue under supply chain management business -- Stable gross margins for pharmaceutical sales and supply chain management -- Revenue from new bio-technical products to be HKD350 mil.- HKD550 mil. in FY17-FY19 RATING SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to positive rating action include: No positive rating action is envisaged in the next 12-18 months due to the company's limited scale and new business operations. Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- EBITDA margins sustained below 30% -- FFO-adjusted net leverage sustained above 1.0x -- Poor execution of new hospital management service business -- Significant cost overrun in new hospital construction. SUNRISE REAL: Delays 2014 Form 10-K to Complete New Audit --------------------------------------------------------- Sunrise Real Estate Group, Inc., notified the Securities and Exchange Commission that its Form 10-K for the fiscal year ended Dec. 31, 2014, is delayed. The Company's prior accounting firm, Finesse CPA, P.C. has ceased operation, is no longer registered with the PCAOB and is no longer able to provide its consent to the use of its audit report for 2013, which must accompany the Form 10K for the fiscal year ended Dec. 31, 2014. Therefore, the Company is required by the Securities and Exchange Act of 1934 to conduct a new audit of its financial statements for 2013, even though there would otherwise be no requirement to do so and there are no outstanding comments to the financial statements for 2013 included in the Form 10-K for the fiscal year ended Dec. 31, 2013, from the Securities and Exchange Commission. Such new audit is currently in process. About Sunrise Real Estate Headquartered in Shanghai, the People's Republic of China, Sunrise Real Estate Group, Inc. was initially incorporated in Texas on Oct. 10, 1996, under the name of Parallax Entertainment, Inc. On Dec. 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc., filed Articles of Amendment with the Texas Secretary of State, changing the name of Sunrise Real Estate Development Group, Inc. to Sunrise Real Estate Group, Inc., effective from May 23, 2006. The Company and its subsidiaries are engaged in the property brokerage services, real estate marketing services, property leasing services and property management services in China. Sunrise Real Estate reported a net loss of $1.93 million in 2013 following a net loss of $3.47 million in 2012. As of June 30, 2014, Sunrise Real had $73.1 million in total assets, $72.2 million in total liabilities and $837,000 in total shareholders' equity. Finesse CPA, P.C., in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a working capital deficiency, accumulated deficit from recurring net losses for the current and prior years, and significant short-term debt obligations currently in default or maturing in less than one year. These conditions raise substantial doubt about its ability to continue as a going concern. ================ H O N G K O N G ================ NOBLE GROUP: S&P Lowers CCR to 'B+'; Outlook Negative ----------------------------------------------------- S&P Global Ratings said that it had lowered its long-term corporate credit rating on Noble Group Ltd. to 'B+' from 'BB-'. The outlook is negative. At the same time, S&P lowered the long- term issue rating on Noble's outstanding senior unsecured notes to 'B' from 'B+'. In addition, S&P lowered its long-term Greater China regional scale rating on the company to 'cnBB-' from 'cnBB' and on the notes to 'cnB+' from 'cnBB-'. Noble is a Hong Kong- based commodity trader. "We downgraded Noble to reflect our view that the company's liquidity position has weakened despite the recent completion of refinancing and a proposed US$500 million fully underwritten rights issue," said S&P Global Ratings credit analyst Danny Huang. This is the result of shorter tenors and higher funding cost, in our view, which reflects banks' more negative stance toward the company. S&P has revised its liquidity assessment of Noble to less than adequate from adequate. Noble obtained a US$1 billion committed revolving loan facility (RCF) and a mostly committed US$2 billion revolving borrowing base facility (BBF) in May 2016. Compared with the company's previously obtained three-year RCF, the recent facilities have a maturity of 364 days. In S&P's view, Noble will need to refinance the borrowings within the next 12 months, and continued commitment from banks will depend on the successful execution of the company's business rationalization. S&P believes the US$500 million rights issue that Noble announced on June 3, 2016, will improve the company's liquidity. However, it will not cover its refinancing needs beyond the next 12 months. The rights issue will be fully underwritten, which S&P views as positive since it shows continued support from the major shareholders. The rights issue is pending shareholders' approval on June 24, 2016. A sustained weak operating performance and increased working capital requirement will further constrain Noble's liquidity. The company reported weak results for the first quarter of 2016 and had an outflow of US$486 million in cash flow from operations, primarily driven by a decline in trade and other payables. S&P believes this is due to lower bank credit lines to finance operations and working capital. Noble's gain on fair value of mark-to-market contracts declined by US$560 million between Dec. 31, 2015, to March 31, 2016, and it is unclear to S&P whether a further decline may happen. The company is discussing with investors to sell North Americas Energy Solutions (NAES) and other assets for at least US$1.5 billion in the second half of 2016. The sale of NAES may improve Noble's liquidity buffer and bolster lenders' confidence. Lenders' confidence in the company's ability to generate adequate profitability and stable cash flow generation after selling its energy solution businesses is an important factor for S&P to assess Noble's ability to refinance its borrowings and secure lines for working capital going forward. The departure of Noble's CEO and the stepping down of its chairman may impact the company's strategy and execution. The new management team is committed to the company's asset light strategy. However, the team has to gain confidence in the market by delivering on its capital raising, business rationalization, and refinancing plan. Nevertheless, S&P believes Noble benefits from a consistent track record of asset sales and raising of funds to stabilize its liquidity. S&P reflects the potential improvement in the company's liquidity and reduction in refinancing risk in a one notch uplift to its anchor. "The negative rating outlook on Noble for the next 12 months reflects the refinancing risks of the company's short-term facilities, limited visibility over the sale process of NAES due to senior management changes, and potentially weaker financial performance and cash flow generation due to reduced credit lines and counterparty support," said Mr. Huang. S&P could lower the rating if Noble's liquidity position continues to deteriorate, such that its liquidity sources are materially lower than its liquidity uses. An indication of this could be continued large working capital outflows, falling cash holdings, or lack of a concrete refinancing plan or commitment from lenders to refinance its 2017 debt maturities. If the sale of NAES does not materialize or is delayed for a prolonged period, the company's liquidity position and cash buffer to meet its financial obligations would also weaken. S&P could also lower the rating if Noble's business or financial position is significantly weakened as a result of lower credit lines or higher financing costs. An indication of this could be a loss of market share, reduction in trading volumes, weaker profit margins, or a material write-off of long term supply contracts. An indication of a weakened leverage position would be a ratio of FFO to debt of less than 20%. S&P could revise the outlook to stable if Noble improves its liquidity position. This could arise if the company raises capital as it has planned and improves its maturity profile and capital structure. An indication would be the company securing longer tenor credit facilities. ========= I N D I A ========= ABHIRAJ CORPORATION: CRISIL Assigns B Rating to INR100MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Abhiraj Corporation (AC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 40.5 CRISIL B/Stable Cash Credit 100.0 CRISIL B/Stable Proposed Long Term Bank Loan Facility 4.5 CRISIL B/Stable The rating reflects AC's average financial risk profile because of modest capital structure and moderate debt protection metrics. The rating also reflects low operating margin in the fragmented textile industry. These weaknesses are mitigated by partner's extensive experience. Outlook: Stable CRISIL believes AC will maintain its business risk profile over the medium term owing to its partner's extensive experience, and established customer relationships. The outlook may be revised to 'Positive' if more-than-expected growth in scale of operations and profitability improves financial risk profile. Conversely, the outlook may be revised to 'Negative', if decline in operating margin or a significant stretch in working capital weakens financial risk profile, particularly liquidity. Set up in 2013 as a partnership firm, Ichalkaranji, Maharashtra- based AC trades in yarn. Its operations are managed by Mr. Prathamesh Dhamane along with the partners Mr. Ashok Jathar and Mr. Vijay Jadhav. AERO CANS: CRISIL Suspends 'D' Rating on INR150MM LT Loan --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Aero Cans India Private Limited (ACIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Cash Credit 20 CRISIL D Long Term Loan 150 CRISIL D Proposed Long Term Bank Loan Facility 20 CRISIL D The suspension of ratings is on account of non-cooperation by ACIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ACIPL is yet to provide adequate information to enable CRISIL to assess ACIPL'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' ACIPL was set up by Mr. Danesh Sayani and Mr. Yasin Sayani in April 2011 to manufacture aerosol cans. Its commercial operations started in January 2013. It has its manufacturing facility in Satara (Maharashtra). AGARWAL ROADLINES: CRISIL Suspends B+ Rating on INR70MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Agarwal Roadlines Private Limited (ARPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 Cash Credit 45 CRISIL B+/Stable Working Capital Demand Loan 70 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by ARPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ARPL is yet to provide adequate information to enable CRISIL to assess ARPL'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' ARPL was incorporated on November 29, 1988, by Mr. Satyanarayan Agrawal. The company is in Gandhidham (Gujarat) and provides truck and other transportation services for various industries, including chemicals, oil and gas, and edible oil. AMBEKESHWAR STEELS: Ind-Ra Assigns B+ Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Ambekeshwar Steels Private Limited (ASPL) a Long-Term Issuer Rating of 'IND B+' with a Stable Outlook. KEY RATING DRIVERS The ratings reflect ASPL's small scale of operations, lack of operational track record and weak credit metrics. The overall revenue of the company stood at INR250.05 mil. in FY16. Its interest coverage (operating EBITDAR/gross interest expense) was weak at 1.34x and financial leverage was (total adjusted debt/operating EBITDAR) at 4.22x. ASPL commenced its commercial operations from March 2015. The ratings, however, are supported by the company's moderate EBITDA margin of 5.19% and comfortable liquidity with the utilization of its working capital facilities being around 86% during the 12 months ended May 2016. The ratings are further supported by over a decade of operating experience of the company's promoters in the steel industry. RATING SENSITIVITIES Positive: An improvement in the overall revenue and profitability leading to improvement in the credit metrics could be positive for the ratings. Negative: A decline in the EBITDA margins leading to deterioration in the gross leverage could be negative for the ratings. COMPANY PROFILE ASPL, incorporated as a private limited company in 2011, manufactures electric resistance welded (ERW) pipe which is used in the construction industry. The company procures its raw material (H.R. coils) from various dealers, TATA Steel (IND AA/RWE) and Steel Authority of India Limited (IND AA/Negative). ASPL's ratings: -- Long-Term Issuer Rating: 'IND B+'/Stable -- INR44.30 mil. term loans: assigned 'IND B+'/Stable -- INR60 mil. fund-based working capital limit: assigned 'IND B+'/Stable/'IND A4' ANANDHA INN: CRISIL Suspends 'D' Rating on INR188MM LT Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Anandha Inn Private Limited (AIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL D Long Term Loan 188 CRISIL D Overdraft Facility 10 CRISIL D The suspension of ratings is on account of non-cooperation by AIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AIPL is yet to provide adequate information to enable CRISIL to assess AIPL'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' AIPL was incorporated in 1990, promoted by Mr. P Thirunavukkarasu. The company operates a 4-star hotel, Anandha Inn, in Puducherry. ANKIT INTERNATIONAL: ICRA Reaffirms 'B' Rating on INR45.5cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B and the short-term rating of [ICRA]A4 to the INR45.50 crore1 (enhanced from INR35.00 crore) bank facilities of Ankit International. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund based limit- Cash credit 45.50 [ICRA]B Reaffirmed Short term non fund based limit Letter of credit 45.50 [ICRA]A4 Reaffirmed The reaffirmed ratings continue to be constrained by the low profitability as a result of limited value addition in the metal trading business. The firm also witnesses intense competition by virtue of its presence in the highly fragmented metal trading industry, given the low entry barriers which exert pressure on its profit margins. The revenue and profitability are also susceptible to government regulations; majority of the imported products traded by AI are under the ambit of the minimum import price (MIP) on steel products imposed by the Government of India in February 2016 to protect the domestic players. However, the ratings favorably take into account the long experience of the promoters in scrap trading business and support of the group companies operating in the same line of business. The ratings also draw comfort from the healthy growth in operating income of the firm in 2015-16 due to bulk orders received from Bhushan Steel Limited and also the improved capital structure as on March 31, 2016, as evinced by a low gearing of 0.91 times, supported by infusion of capital. ICRA expects the revenue of the firm to register a year on year (y-o-y) de-growth in FY2017 on account of stringent measures undertaken by the government to curb cheaper imports and protect the domestic steel industry (till August 2016). The extension of these measures can adversely impact the operations and profit margins of the firm. While, some comfort is expected from increasing domestic consumption on the back of rising government expenditure on infrastructure, the profitability of the firm will remain susceptible to fluctuations in foreign exchange rates and steel prices. Even though the firm has started trading in imported PVC (Polyvinyl chloride) resins after the MIP was imposed on steel products, its impact on the revenue growth and profitability can only be ascertained in future. Further, any significant withdrawal of capital could negatively affect the credit profile of the firm. Ankit International (AI) was established as a proprietorship concern in 2010 by Mr. Arun Jain; it is owned and managed by his son Mr. Pranav Jain, who is the proprietor of the firm. AI started its operations as a ship breaking unit, but it shifted focus to trading of metals and scrap from FY2014. Its product profile includes steel products like hot rolled (HR) steel sheets, wire rods and carbon seamless steel pipes, which are imported from China, Japan, Hong Kong and sold in the domestic market. The concern's warehouse is located in Navi Mumbai and its registered office is in Mumbai. Recent results Ankit International recorded a profit after tax (PAT) of INR0.57 crore on an operating income of INR89.37 crore for the year ending March 31, 2016. ARIHANTANAM LIFE: CRISIL Suspends B+ Rating on INR90MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Arihantanam Life Care Private Limited (ALPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable Letter of Credit 52.5 CRISIL A4 Term Loan 7.4 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by ALPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ALPL is yet to provide adequate information to enable CRISIL to assess ALPL'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' ALPL was set up as a partnership concern, Arihantanam Organics, in 2007, and was reconstituted as a private limited company in October 2010. ALPL is promoted by Mr. R K Singh and Mr. Hasmukhbhai Patel. The company manufactures bulk drugs and active pharmaceutical ingredients (APIs). It has a plant in Vapi (Gujarat). The company's product portfolio includes nutroniks, such as methylcobalamin, antimalarial drugs, antihistamin, antituberculosis, and anti-inflammatory drugs. ATLAS ALLOY: ICRA Suspends D Rating on INR14.90cr Bank Loan ----------------------------------------------------------- ICRA has suspended [ICRA]D rating assigned to the INR14.90 crore bank lines of Atlas Alloy (India) Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. The reaffirmation of ratings is constrained by the moderate scale of operations in the DCA/CS business and weak capital structure as reflected by gearing of 2.26 times as on 31st March 2015 due to low net-worth and high working capital borrowings. The ratings are also constrained by AMPL's dependence on a single supplier and product for its revenue with CSL being the DCA/CS for CSL and company's exposure to counter-party credit risks, with default on payments borne by AMPL. The ratings, however, positively factor in the long track record of the management in the DCA/CS business; relationship enjoyed with CSL as the sole distributor of PVC resin in Andhra Pradesh and Telangana and AMPL's established relationships with key customers in the polymer industry. Going forward, the company's ability to maintain its profitability and manage its working capital requirements will remain the key rating sensitivities from a credit perspective. Incorporated in 2006, Ayushman Merchants Private Limited (AMPL) is involved in the trading of polymer products. The company is the sole Del Credere Agent (DCA) cum Consignment Stockiest (CS) of Chemplast Sanmar Limited in Andhra Pradesh and Telangana. AMPL is managed by Mr. Manoj Dugar, who has over 15 years of experience in the polymer industry. AMPL is also involved in trading of products such as calcium and mineral powder, chlorinated paraffin, and wax. The company is part of the Dugar group which is also involved manufacturing of Cast Polypropylene (CPP) / Ethyl Vinyl Acetate (EVA) films under Welset Polypack Private Limited; and manufacturing of Polypropylene(PP) sheets/rods in Dugar Polymers Limited [rated [ICRA]BB- (Stable)/[ICRA]A4]. Recent Results The company reported a net profit of INR0.54 crore on operating income of INR6.21 crore in FY2015 as against net profit of Rs.0.53 crore on operating income of INR5.39 crore in FY2014. BALESHWAR SYNTHETICS: CRISIL Reaffirms B+ Rating on INR50MM Loan ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Baleshwar Synthetics Textiles Private Limited (BST) continues to reflect BST's modest scale of operations in the intensely competitive textile industry and it's below average financial risk profile marked by small networth, leverage capital structure and average debt protection metrics. These rating weaknesses are partially offset by extensive experience of promoters in the textile industry along with established relationship with customer and suppliers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Packing Credit 10 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 40 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that BST will continue to benefit over the medium term from its promoters extensive experience in the textile industry. The outlook may be revised to 'Positive' in case there is significant improvement in the company's revenues and profitability or if there is an improvement in the company's capital structure and debt protection measures. Conversely, the outlook may be revised to 'Negative' in case of a significant decline in the company's revenues or profitability margins or elongation of working capital cycle or larger than anticipated debt funded capex resulting in a weakening in its financial risk profile. BST, established in 1981, by Mr. Rajendrakumar Biyani is engaged in manufacturing of fabrics made out of viscose and cotton yarn. The company has facility at Tarapur, Maharashtra. The fabric produced by the firm is sold in the domestic as well as export market used primarily for suiting and shirting. CHINTAMANI SHARMA: ICRA Suspends 'B/A4' Rating on INR10cr Loan -------------------------------------------------------------- ICRA has suspended [ICRA]B and [ICRA]A4 ratings assigned to the INR10 Crores fund based and non fund based facilities of Chintamani Sharma and Sons. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. DAULAT AGRO: CRISIL Suspends 'D' Rating on INR260MM LT Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Daulat Agro India Private Limited (DAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL D Long Term Loan 260 CRISIL D Proposed Long Term Bank Loan Facility 10 CRISIL D The suspension of rating is on account of non-cooperation by DAPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DAPL is yet to provide adequate information to enable CRISIL to assess DAPL'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 1996 by Mr. Sanjay Deshmukh, DAPL exports various vegetables, fruits, and herbal foods. The company is based in Ahmed Nagar (Maharashtra). The company has commenced commercial operations from October 2013. DEVIPRIYA ENTERPRISES: ICRA Suspends B+ Rating on INR19cr Loan -------------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to the INR19.0 crore, long term fund based facilities of Devipriya Enterprises. The suspension follows ICRA's inability to carry out a rating surveillance due to lack of cooperation. Established in 2011, DE is developing a residential real estate project 'Vasudha Etasha' Kothrud, in Pune. The Promoters of the firm are Vasudha Landmarks Private Limited (VLPL) promoted by Mr. Umesh Kothawade and Devichand K. Jain. Vasudha group is engaged in real estate development in Pune and surrounding areas for around a decade and they have completed around 10 projects till date. Total area developed till date by the group is ~2.6 lakh sq ft. In the entity, Mr. Devichand Jain is a funding partner while complete operations are managed by Mr. Kothawade of Vasudha group EDGETECH AIR: Ind-Ra Suspends BB- Long-Term Issuer Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Edgetech Air Systems Private Limited (EASPL) 'IND BB-' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for EASPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. EASPL's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Stable -- INR60 mil. non-fund-based bank guarantee: migrated to Short-term 'IND A4+(suspended)' from Short-term 'IND A4+' -- INR180 mil. fund-based working capital limit: migrated to Long-term 'IND BB-(suspended)'/Short-term 'IND A4+(suspended)' from Long-term 'IND BB-'/Short-Term 'IND A4+' -- INR29.32 mil. term loan: migrated to Long-term 'IND BB-(suspended)' from Long-term 'IND BB-' GALAXY COTTON: ICRA Lowers Rating on INR14cr Cash Loan to D ------------------------------------------------------------ ICRA has revised the long-term rating assigned to the INR14.00 crore cash credit facility of Galaxy Cotton & Textiles Private Limited from [ICRA]B to [ICRA]D. ICRA has also revised the short- term rating assigned to the INR2.10 crore Standby Line of Credit facility of GCTPL from [ICRA]A4 to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 14.00 Revised to [ICRA]D from [ICRA]B Standby Line of Credit 2.10 Revised to [ICRA]D from [ICRA]A4 The rating revision reflects delays in debt servicing by the company on its borrowings due to stretched liquidity conditions. Galaxy Cotton & Textiles Private Limited (GCTPL) was incorporated in the year 1994 and is involved in the business of ginning and pressing of raw cotton. The company's plant is located in Veraval (Rajkot) and is equipped with forty eight ginning machines and one pressing machine with production capacity of 400 bales per day. Besides manufacturing, the company is also engaged in trading of cotton seeds, yarn, lint etc. The promoters of GCTPL have been associated with the cotton ginning and trading business for over two decades and are also involved in the operations of a few other cotton ginning companies, either as directors or partners. GROTECH LANDSCAPE: Ind-Ra Suspends BB+ Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Grotech Landscape Developers Private Limited's (GLDPL) 'IND BB+' Long- Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND BB+(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for GLDPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. GLDPL's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB+(suspended)' from 'IND BB+'/Stable -- INR70 mil. non-fund-based limits: migrated to 'IND BB+(suspended)' from 'IND BB+' and 'IND A4+(suspended)' from 'IND A4+' -- INR15 mil. fund-based limits: migrated to 'IND BB+(suspended)' from 'IND BB+' and 'IND A4+(suspended)' from 'IND A4+' HANSRAJ AGROFRESH: Ind-Ra Assigns B+ Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Hansraj Agrofresh Private Limited (HAPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect HAPL's lack of operational track record, as it started operations in December, 2014. Provisional (P) FY16 financials indicate revenue of INR298.93 mil. (FY15: INR52.02 mil. for four months of operations) and operating margins of 11.4% (0.83%). The ratings also factors in HAPL's weak credit metrics in FY16 with FY16 (P) net leverage (total adjusted net debt/operating EBITDA) of 7.01x (FY15: negative 0.81x, as the company was debt- free) and gross interest coverage (operating EBITDA/gross interest expense) of 3.56x (7.17x). However, the ratings are supported by HAPL's comfortable liquidity position, as evident from the approximately 88.62% average utilization of its fund-based working capital limits during the 12 months ended May 2016. The ratings also draw support from HAPL's promoters' experience of over 11 years in the beverage industry. RATING SENSITIVITIES Positive: Substantial growth in the company's top line along with an improvement in profitability, leading to improved credit metrics, could lead to a positive rating action. Negative: A decline in operating profitability, leading to deterioration in credit metrics, could be negative for the ratings. COMPANY PROFILE Incorporated in 2014, HAPL manufactures ready-to-serve fruit juices in Siliguri, West Bengal. It manufactures fruit juices such as mango, apple, lychee, lemon and orange in various packing variants such as pet bottles, tetra classic aseptics and tetra paks. The company sells its products under the brand name Hansraj. HAPL's ratings: -- Long-Term Issuer Rating: assigned 'IND B+'; Outlook Stable -- INR92.98 mil. term loan: assigned 'IND B+'/Stable -- INR150 mil. fund-based limits: assigned 'IND B+'/Stable/ 'IND A4' -- INR2.97 mil. non-fund-based limits: assigned 'IND A4' HAYWARD SYNTHETICS: ICRA Reaffirms B+ Rating on INR1.87cr Loan -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B+ to the INR1.87 crore term loan facility (Reduced from INR4.12 crore) of Hayward Synthetics Private Limited. ICRA has also assigned the short term rating at [ICRA]A4 to the INR0.36 crore non fund based limits of HSPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- LT Scale Fund Based Limits Term Loan 1.87 [ICRA]B+ Reaffirmed LT & ST Scale Fund Based Limits 15.00 [ICRA]B+/[ICRA]A4 Reaffirmed ST Scale-Non Fund Based Limits 0.36 [ICRA]A4 Assigned LT & ST Scale- Unallocated Limits 1.77 [ICRA]B+/[ICRA]A4 Reaffirmed ICRA has also reaffirmed the long term rating of [ICRA]B+ and short term rating of [ICRA]A4 to the INR1.77 crore (Enhanced from INR1.48 crore) unallocated limits and INR15.00 crore fund based facilities of the company. The overall utilization of long term fund based and short term fund based limits should not exceed INR15.00 crore at any point of usage. The ratings reaffirmation continue to remain constrained by the stagnant revenue over the past three years, stretched liquidity position of the company during FY16 following sluggishness in realization of receivables and high inventory levels resulting in full utilization of bank limits, limited financial flexibility arising out of highly leveraged capital structure with weak debt protection indicators. The ratings are also constrained by susceptibility of margins to adverse raw material (majorly polyester yarn) price fluctuations; intense competitive pressures and sensitivity to forex risks given the sizeable export revenues. The ratings, however, favorably factor in the long experience of HSPL's promoters in the textile industry and established presence in both export and domestic markets along with a moderately diversified client base. ICRA's expects HSPL's revenue to improve by 5% in FY 2016-17 as compared FY 2015-16 on account of increase in job work activity. HSPL's profit would remain vulnerable to adverse movements in the prices of its key inputs like polyester yarn. The net profit margin of the company is expected to remain pressurized on account of high depreciation and interest expenses. The capital structure of the company is expected to remain leveraged in the near term on account of high reliance of the company on working capital borrowings. Established in 1991 by Mr. Pramod Daga and Mr. Nilesh Goyal, Hayward Synthetics Pvt Ltd (HSPL) is engaged in the manufacturing of fabric for suiting and shirting from yarn along with trading in both finished and grey fabrics. The company has a registered office in Mumbai and two manufacturing facilities at Umbergaon in Gujarat and Tarapur in Maharashtra with an installed capacity of 37 looms and 48 looms producing 25 lacs metres and 35 lacs metres of fabric per annum respectively. Recent results HSPL has recorded a net profit of INR0.29 crore (provisional) on an operating income of INR38.04 crore (provisional) for the year ending March 31, 2016. HYPNOTIK CLOTHING: CRISIL Raises Rating on INR67.5MM Loan to BB- ---------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facility of Hypnotik Clothing Private Limited (HPCL) to 'CRISIL BB-/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 67.5 CRISIL BB-/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects significant and sustainable improvement scale of operations leading to an improved business risk profile. Increased orders from overseas resulted in sales growth of 85 percent year-on-year to INR216.2 million in 2015-16 (refers to financial year, April 1 to March 31). Additionally, higher focus on value-added products led to stabilisation of operating margin at an estimated 7-8 percent in 2015-16. During the year, steady realisation has also resulted in better working capital management, with gross current assets improving to 237 days as on March 31, 2016, from 327 days a year earlier. CRISIL believes the company will sustain its revenue growth over the medium term driven by higher order flow from overseas. Net cash accrual is estimated at INR6.8 million for 2015-16 against no repayment obligation, and is expected at around INR36 million in 2016-17, against minimal repayment obligation. Bank limit utilisation averaged 97 percent over the 12 months through March 2016. Capital structure has improved as an unsecured loan of INR25 million has been converted into equity during 2015-16. Liquidity is also supported by unsecured loans from promoters, the balance of which was INR12.3 million as on March 31, 2016. The rating reflects the company's longstanding relationship with its key customer, extensive experience of its promoters in the readymade garments industry, and their funding support. These rating strengths are partially offset by working capital- intensive and a modest scale of operations in an intensely competitive industry. The rating also factors in customer and geographic concentration in the company's revenue profile. Outlook: Stable CRISIL believes HPCL will continue to benefit over the medium term from the extensive industry experience of its promoters and healthy relationship with customers. The outlook may be revised to 'Positive' in case of a ramp up in scale of operations supported by sustainable improvement in operating profitability, along with reduction in working capital cycle to improve liquidity. Conversely, the outlook may be revised to 'Negative' if pressure on cash accrual or significant delay in realisation of receivables weakens liquidity, or in case of large, debt- funded capital expenditure, resulting in weakening of the financial risk profile. HCPL was set up in December 2010 by Mr. Vijay Golani and Ms. Resham Chellaram. It exports readymade garments primarily to the US. It gets the garments manufactured on a job-work basis from various manufacturers in Karnataka, Maharashtra, and Gujarat. JOSEPH RUBBERS: CRISIL Reaffirms 'B+' Rating on INR80MM Cash Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Joseph Rubbers (India) Private Limited (JRIPL) continues to reflect below-average financial risk profile because of small networth and weak debt protection metrics. The rating also factors in the susceptibility of operating margin to volatile raw material prices. These rating weaknesses are mitigated by the extensive experience of promoters in the rubber-processing business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable (Reaffirmed) Long Term Loan 40 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes JRIPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if sustainable increase in revenue and profitability, strengthens financial risk profile. Conversely, the outlook may be revised to 'Negative' if lower- than-expected cash accrual or large debt-funded capital expenditure programme, results in weak financial risk profile. Incorporated in 2008 and based in Kanjirappally (Kerala), JRIPL processes and sells rubber products. The operations are managed by Mr. P J Dominic and his wife Ms. Elizabeth Dominic. K. V. CHINNAAIH: CRISIL Assigns 'B' Rating to INR35MM Term Loan --------------------------------------------------------------- CRISIL has revoked the suspension of its rating on the long-term bank facilities of K. V. Chinnaaih (KVC) and has assigned its 'CRISIL B/Stable/CRISIL A4' rating to the facilities. CRISIL had suspended the rating on June 30, 2015, as KVC had not provided the necessary information required for a rating review. The company has now shared the requisite information, enabling CRISIL to assign a rating to its bank facilities Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4 (Assigned; Suspension Revoked) Cash Credit 35 CRISIL B/Stable (Assigned; Suspension Revoked) Cash Term Loan 35 CRISIL B/Stable (Assigned; Suspension Revoked) The ratings reflect a small scale of operations, exposure to intense competition in bidding for contracts, and a subdued financial risk profile. These weaknesses are partially offset by the extensive experience, of more than three decades, of the firm's proprietor in the civil construction business, and benefits derived from diversification into the hotel business. Outlook: Stable CRISIL believes KVC will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' in case of significant improvement in scale of operations and profitability, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of an increase in working capital requirement resulting in deterioration in liquidity, or large, debt-funded capital expenditure, weakening the firm's capital structure. KVC, established as a proprietorship firm in 1978 by Mr. K V Chinnaaih, executes civil construction works for various government entities in Karnataka. It also operates a 51-bed hotel in Mysore. KAIZEN COLD: CRISIL Suspends B- Rating on INR65MM LT Loan --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kaizen Cold Formed Steel Private Limited (KCFS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B-/Stable Letter of Credit 35 CRISIL A4 Proposed Long Term Bank Loan Facility 65 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by KCFS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KCFS is yet to provide adequate information to enable CRISIL to assess KCFS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 2009, KCFS trades in steel products. The company's day- to-day operations are managed by Mr. Raghav Saraf and his brother Mr. Rahul Saraf. KALPATHARU LIQUOR: ICRA Suspends B+ Rating on INR15cr Bank Loan --------------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR15.00 crore bank facilities of Kalpatharu Liquor Distributors. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. LEOLINE FOODS: CRISIL Assigns 'B' Rating to INR106MM LT Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Leoline Foods Private Limited (LFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B/Stable Long Term Loan 106 CRISIL B/Stable The rating reflects a below-average financial risk profile because of debt-funded capital expenditure and large incremental working capital requirement, and nascent stage of operations. These weaknesses are partially offset by the extensive experience of its promoters in the food-processing industry. Outlook: Stable CRISIL believes LFPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of a timely ramp-up in sales and higher-than-expected cash accrual during the initial phase of operations. The outlook may be revised to 'Negative' in case of a time or cost overrun in project implementation, or lower revenue and cash accrual, a stretched working capital cycle, or additional, large, debt-funded capital expenditure, adversely impacting the financial risk profile. Incorporated in 2015, LFPL is promoted by the Patna-based Agarwal family. The company is setting up a unit for manufacturing 2D and 3D pellets, pasta, and vermicelli in Choti Nawada, Patna. LUKE EXPORT: CRISIL Reaffirms B+ Rating on INR20MM Term Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Luke Export (LE) continue to reflect LE's modest scale of operations, and below- average financial risk profile because of small networth and weak debt protection metrics. These weaknesses are partially offset by extensive experience of its proprietor in the seafood industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Bill Discounting 80 CRISIL A4 (Reaffirmed) Packing Credit 50 CRISIL A4 (Reaffirmed) Term Loan 20 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes LE will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' if there is significant and sustainable growth in revenue, and improvement in profitability and debt protection metrics. The outlook may be revised to 'Negative' if revenue or profitability declines significantly, or if the firm undertakes debt-funded capital expenditure (capex), leading to weakening of financial risk profile. Update Revenue is estimated at INR600 million for 2015-16 (refers to financial year, April 1 to March 31), up from INR582 million in 2014-15, supported by demand from established clientele, particularly in Maldives. Operating margin remained stable, at 3.2 percent, due to trading business. The firm will likely maintain business risk profile over the medium term backed by its proprietor's extensive industry experience. Financial risk profile remained subdued, because of estimated small networth and high total outside liabilities to tangible networth ratio of INR51 million and 3.29 times, respectively, as on March 31, 2016. Debt protection metrics were weak, with net cash accrual to total debt and interest coverage ratios at 13 and 2.78 times, respectively, in 2015-16. The financial risk profile is likely to improve gradually over the medium term due to stable, albeit, low profitability and absence of significant debt-funded capex. Liquidity is adequate. Cash accrual is expected at INR9-11 million against debt obligation of INR5 million per annum over the medium term. Bank line utilisation is moderate. LE, established in 1998, is a proprietorship concern of Mr. Xavier Luke. It processes and exports sea food. Its processing facilities are at Sakthikulangara in Kerala, and at Padanthalumoodu in Tamil Nadu. MAYAJAAL ENTERTAINMENT: CRISIL Suspends D Rating on INR75MM Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Mayajaal Entertainment Limited (MEL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 61 CRISIL D Secured Overdraft Facility 75 CRISIL D The suspension of rating is on account of non-cooperation by MEL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MEL is yet to provide adequate information to enable CRISIL to assess MEL'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' MEL was incorporated in 1997 as West Bank Garden Farm Clubs Pvt Ltd in Chennai. The company got its present name in 2000. It operates an entertainment centre and is developing a residential project at Kanathur in Chennai. MOHTA PLYWOOD: ICRA Suspends B/A4 Rating on INR23.5cr Bank Loan --------------------------------------------------------------- ICRA has suspended the [ICRA]B/[ICRA]A4 ratings for the INR23.50 Crore bank facilities of Mohta Plywood Industries Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MOTHERS AGRO: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan ------------------------------------------------------------- CRISIL's rating on bank facilities of Mothers Agro Foods Private Limited (MAFPL) continues to reflect the modest scale of operations, amid intense competition in the agricultural goods processing industry and below average financial risk profile, because of modest networth and average debt protection metrics. These weaknesses are partially offset by the extensive industry experience of promoters and longstanding relations with suppliers and customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 14.4 CRISIL B+/Stable (Reaffirmed) Term Loan 18 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes the company will continue to benefit over the medium term from the extensive industry experience of promoters. The outlook may be revised to 'Positive' if growth in revenue and profit margin strengthens the financial risk profile. The outlook may be revised to 'Negative' if a decline in accrual, significant debt-funded capital expenditure or larger-than-expected working capital requirement weakens the financial risk profile. MAFPL, incorporated in 2011, is engaged in processing wheat flour. Operations are managed by promoters, Mr. TP Varkey and Ms. Dhanya Varkey. The company is based at Ernakulam, Kerala. MOUNT VELOUR: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan ------------------------------------------------------------- CRISIL's rating on the long term bank facilities of Mount Velour Rubber Works Private Limited (MVRWL) continues to reflect MVRWL's modest scale of operations and exposure to intense competition in the industry. The rating also reflects MVRWL's below-average financial risk profile marked by low networth base. These rating weaknesses are partially offset by promoters' extensive industry experience and established customer relationships. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that MVRWL will continue to benefit over the medium term from its promoters' extensive experience in the rubber industry. The outlook may be revised to 'Positive' if the company improves its scales of operations and operating profitability, resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if MVRWL's financial risk profile deteriorates, most likely on account of lower cash accruals or large debt-funded capex plans. Incorporated in the year 1977 as partnership firm and subsequently rechristened as MVRWL in 2005, the company is engaged in manufacturing of block rubber. Promoted by Mr. M. Usman and his associates, the company is based out of Nilambur in Kerala. MPCR BROADCASTING: CRISIL Suspends B+ Rating on INR250MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of MPCR Broadcasting Service Pvt Ltd (MPCR, part of TVL group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 250 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by MPCR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MPCR is yet to provide adequate information to enable CRISIL to assess MPCR'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 the ratings, CRISIL has consolidated the business and financial risk profile of MPCR, TV Vision Ltd (TVL), UBJ Broadcasting Pvt Ltd (UBJ) and HHP Broadcasting Services Pvt Ltd (HHP). This is because all these companies, together referred as the TVL group, are engaged in the broadcasting business, are under a common management, and have fungible cash flows. Moreover, these companies are expected to be merged together over the medium term. TVL, incorporated in 2007, is a fully owned subsidiary of Sri Adhikari Brothers Television Network Ltd (SABTNL). It broadcasts four channels including those through its wholly owned subsidiaries, UBJ, MPCR, and HHP. It is currently operating a free-to-air (FTA) general entertainment channel (GEC), Mastii, in Hindi. The channel commenced commercial operations in 2010. UBJ, incorporated in 2009, is currently operating an FTA regional GEC, Dhamaal, in Hindi in Madhya Pradesh, Chhattisgarh, Rajasthan, and Gujarat. The channel commenced commercial operations in 2011-12 (refers to financial year, April 1 to March 31). MPCR, incorporated in 2009, is currently operating an FTA regional GEC, MaiBoli, in Marathi in Maharashtra. The channel commenced commercial operations in 2011-12. HHP, incorporated in 2009, is currently operating an FTA regional GEC, Dabangg, in Hindi in Uttar Pradesh, Bihar, Jharkhand, and Uttaranchal. The channel commenced commercial operations in 2011-12. MURLIDHAR JEWELLERS: Ind-Ra Suspends B Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Murlidhar Jewellers' '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 agency has also migrated Murlidhar Jewellers' INR50 mil. fund-based limits to 'IND B (suspended)' from 'IND B' and 'IND A4(suspended)' from 'IND A4'. 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 Murlidhar Jewellers. 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. MUTHOOT AUTOMOBILE: CRISIL Suspends B+ Rating on INR50MM Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Muthoot Automobile Solutions Private Limited (MASPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable Inventory Funding Facility 50 CRISIL B+/Stable Term Loan 30 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by MASPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MASPL is yet to provide adequate information to enable CRISIL to assess MASPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Incorporated in 2010, MASPL is engaged in dealership of passenger cars manufactured by Ford India Pvt Ltd (Ford). The company's business operations are managed by Mrs. Remy Thomas Muthoot. MASPL is a part of the Muthoot Pappachan group which has interests in diverse fields such as non-banking financial business, power generation, automobile dealership, and real estate and infrastructure development. NIKKI STEELS: Ind-Ra Suspends B+ Long-Term Issuer Rating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nikki Steels Private Limited's (NSPL) '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 agency has also migrated the ratings on NSPL's INR100 mil. fund- based limits to 'IND B+(suspended)' from 'IND B+' and 'IND A4(suspended)' from 'IND A4'. 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 NSPL. 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. OM PRINTING: CRISIL Suspends 'C' Rating on INR110MM Term Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of OM Printing and Flexible Packaging Private Limited (Om Flexi). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL C Term Loan 110 CRISIL C The suspension of rating is on account of non-cooperation by Om Flexi with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Om Flexi is yet to provide adequate information to enable CRISIL to assess Om Flexi'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' Om Flexi, incorporated in 2011, is promoted by the Lodha and More families with ownership of 20 per cent and 80 per cent, respectively. The company has set up a plant for manufacturing flexible packaging, laminated films, and poly-films, primarily used in the fast-moving consumer goods, food packaging, engineering, and pharmaceuticals industries, at Malegaon in Nashik (Maharashtra). The plant commenced commercial operations in 2013-14 (refers to financial year, April 1 to March 31). OMR MALL: CRISIL Lowers Rating on INR950MM Term Loan to 'D' ----------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facility of OMR Mall Developers Private Limited (OMR) to 'CRISIL D' from 'CRISIL BB-/Stable'. The downgrade reflects the company's delays in meeting interest obligation due to stretched liquidity on account of time overrun in its project. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 950 CRISIL D (Downgraded from 'CRISIL BB-/Stable') OMR is exposed to risks related to implementation of its project for setting up a shopping mall. However, it benefits from the extensive experience of its promoters in the construction industry. OMR was incorporated in 2007 for constructing a shopping mall in Chennai. The company is promoted by Allied Investments & Housing Pvt Ltd, Majestic Realtors Pvt Ltd, Mr. Syed M Salahuddin, and Mr. H S Saeed Aslam. PALLA TEXTILES: ICRA Suspends 'D' Rating on INR27cr Bank Loan ------------------------------------------------------------- ICRA has suspended the [ICRA]D rating assigned to the INR27.00 crore bank facilities of Palla Textiles Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. PUPIL TREE: CRISIL Suspends 'D' Rating on INR170MM LT Loan ---------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Pupil Tree Foundation (PTF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 170 CRISIL D The suspension of rating is on account of non-cooperation by PTF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PTF is yet to provide adequate information to enable CRISIL to assess PTF's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up by Mr. Prabhuraj Jahagirdas and his family members in 2001, PTF operates Pupil Tree Academy in Bellary, which offers playschool, kindergarten, primary, secondary, and higher secondary education. The school follows the syllabus set by the Indian Certificate of Secondary Education and Karnataka State Board. RLS ALLOYS: CRISIL Suspends 'D' Rating on INR70MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of RLS Alloys Private Limited (RLS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL D Letter of Credit 5 CRISIL D Long Term Loan 15 CRISIL D Proposed Long Term Bank Loan Facility 20 CRISIL D The suspension of ratings is on account of non-cooperation by RLS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RLS is yet to provide adequate information to enable CRISIL to assess RLS'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' RLS, set up in 2006 and based in Trichy (Tamil Nadu), manufactures steel castings. The company's daily operations are managed by Mr. Perumal Tamilarasu. ROSHAN ENTERPRISES: ICRA Suspends B+ Rating on INR20cr Bank Loan ---------------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR20.00 crore bank facilities of Roshan Enterprises. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. RUBBER O MALABAR: Ind-Ra Assigns D Long-Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Rubber O Malabar Products Private Limited (ROM) a Long-Term Issuer Rating of 'IND D'. KEY RATING DRIVERS The ratings reflect ROM's continuing delays in the servicing of its term debt since December 2015 due to a tight liquidity position. RATING SENSITIVITIES Positive: Three consecutive months of timely debt servicing would be positive for the ratings. COMPANY PROFILE Incorporated in 2009, Kerala-based ROM manufactures various types of rubber conveyor belts. It belongs to the Infinis group of companies owned by a group of technocrats who have been in the industry for more than two decades. ROM's ratings: -- Long-Term Issuer Rating: assigned 'IND D' -- INR45.80 mil. long-term loans: assigned Long-term 'IND D' -- INR14.20 mil. fund-based facilities: assigned Long- term/Short-term 'IND D' RUHAN TEPPICH: CRISIL Assigns B+ Rating to INR30MM Packing Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Ruhan Teppich Exports. (RTE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing Credit 30 CRISIL B+/Stable Post Shipment Credit 70 CRISIL A4 The ratings reflect the firm's modest scale of operations and large working capital requirement in the intensely competitive home furnishings industry, and below-average financial risk profile because of subdued debt protection metrics. These weaknesses are partially offset by the extensive industry experience of its partners. Outlook: Stable CRISIL believes RTE will continue to benefit over the medium term from the extensive industry experience of its partners. The outlook may be revised to 'Positive' in case of healthy growth in revenue with improvement in operating profitability, resulting in higher-than-expected cash accrual, along with better working capital management. Conversely, the outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, deteriorates, most likely on account of a decline in revenue and profitability, larger-than-expected, debt-funded capital expenditure, or increase in working capital requirement. RTE is a partnership firm established in 2000 by Mr. Mohd Rizwan with his family. The firm manufactures and exports hand-made rugs, carpets, and home furnishing products made of wool, cotton, fibre, and leather. These include hand-tufted, hand-knotted, leather, wall-to-wall carpets, and bath rugs. The firm's manufacturing facility is in Bhadohi, Uttar Pradesh. Net profit was INR3.0 million on net sales of INR385.0 million for 2014-15 (refers to financial year, April 1 to March 31), against net profit of INR5.5 million on net sales of INR242.8 million for 2013-14. S.V. POULTRIES: ICRA Suspends B+ Rating on INR15cr Bank Loan ------------------------------------------------------------ ICRA has suspended the rating of [ICRA]B+ assigned to the INR15.00 crore bank facilities of S.V. Poultries. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. SABARI EXIM: ICRA Suspends 'D' Rating on INR37cr Bank Loan ---------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]D assigned to the INR37.00 crore fund based facility of Sabari Exim Private Limited. ICRA has also suspended the short-term rating of [ICRA]D assigned to the Rs.93.00 crore non-fund based facilities of Sabari Exim Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance, in the absence of the requisite information from the company. SAS AUTOMOTIVES: Ind-Ra Suspends BB Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated SAS Automotives Private Limited's (SAPL) 'IND BB' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. This rating will now appear as 'IND BB(suspended)' on the agency's website. The agency has also migrated SAPL's INR100 mil. fund-based limits to 'IND BB(suspended)'/'IND A4+(suspended)' from 'IND BB'/'IND A4+'. 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 SAPL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during the six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. SHREE SIDHBALI: CRISIL Reaffirms B Rating on INR200MM LT Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Shree Sidhbali Impex Private Limited (SIPL) continue to reflect the company's weak financial risk profile because of high gearing and subdued debt protection metrics, large working capital requirement, modest scale of operations, and susceptibility to intense competition. These weaknesses are partially offset by extensive experience of promoters in the iron and steel industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B/Stable (Reaffirmed) Letter of Credit 100 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 200 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes SIPL will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' in case of significant increase in revenue and profitability and better working capital management. The outlook may be revised to 'Negative' if decline in profitability or revenue results in low cash accrual, or if large working capital requirement further weakens financial risk profile, particularly liquidity. Update Revenue declined to INR387.1 million in 2014-15 (refers to financial year, April 1 to March 31) from INR333.1 million in 2013-14 due to fall in sponge iron prices, which led to cancellation of orders. However, increase in product portfolio (coal trading in 2015-16 and waste paper in 2013-14) and opening of a new branch in Uttarakhand improved turnover to INR550.5 million in 2015-16. However, operating margins are expected to remain moderate at around 3 percent over the medium term. In line with CRISIL's expectation, working capital requirement remained large, with gross current assets of 195 days as on March 31, 2015 (though improved from 240 days in the previous year); receivables improved to 119 days as on March 31, 2016 from 212 days in the previous year, and inventory has remained small at 4 days. Bank limit utilisation was high at 88 percent on an average over the 12 months ended March 2016. Interest coverage ratio was low at 1.14 times for 2014-15 and networth small at INR62.8 million as on March 31, 2015. However, cash accrual of INR2.2 million and INR2.6 million in 2015-16 and 2016-17, respectively, against no debt obligation, and absence of major capital expenditure over the medium term will support liquidity. Established by Mr. Jawahar Lal Vig, Mr. Bhim Sain Kansal, and Mr. Vinod Kumar Singhal in Muzaffarnagar, Uttar Pradesh, in 2009, SIPL trades in sponge iron waste paper and coal. Commercial operations began in November 2011. Profit after tax (PAT) was INR0.48 million on net sales of INR387.1 million for 2014-15, against INR0.42 million on net sales of INR333.1 million for 2013-14. SHRI SHRI: CRISIL Suspends 'B' Rating on INR58.5MM Term Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of Shri Shri K.K. Tungal Memorial Trust (R) (KKTMT). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Auto loans 1.5 CRISIL B/Stable Proposed Long Term Bank Loan Facility 15.0 CRISIL B/Stable Term Loan 58.5 CRISIL B/Stable The suspension of rating is on account of non-cooperation by KKTMT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KKTMT is yet to provide adequate information to enable CRISIL to assess KKTMT's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 2003, KKTMT runs two secondary schools and two pre- university colleges in the Bijapur district of Karnataka. The trust is presently undertaking the construction of a ladies hostel in Bijapur town. KKTMT is constituted and managed by the managing trustee, Mr. A.K.Tungal. SHUBHYAN MOTORS: CRISIL Reaffirms B- Rating on INR50MM Loan ----------------------------------------------------------- CRISIL's ratings continue to reflect Shubhyan Motors Private Limited (SMPL) weak financial risk profile, because of modest networth, aggressive gearing, and weak debt protection metrics. The ratings reflect unrelated diversification, investments/loans to group companies, and exposure to intense competition in the automobile industry. These weaknesses are mitigated by the extensive experience of promoters in the automobile dealership business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Channel Financing 50 CRISIL B-/Stable (Reaffirmed) Inventory Funding Facility 50 CRISIL A4 (Reaffirmed) Term Loan 20 CRISIL B-/Stable (Reaffirmed) CRISIL, on March 14, 2016, had downgraded its long-term rating on the bank facilities of SMPL to 'CRISIL B-/Stable' from 'CRISIL B/Stable' while reaffirming the rating on the short-term facility at 'CRISIL A4'. Outlook: Stable CRISIL believes SMPL's financial risk profile will remain constrained by unrelated diversification and investments. The outlook may be revised to 'Positive' if financial risk profile improves significantly, most likely through infusion of funds by the promoters, coupled with liquidation of investments/loans to group companies. Conversely, the outlook may be revised to 'Negative' if investment in unrelated businesses increases further, or if there is a stretch in the working capital cycle, or if operating margin declines. SMPL, incorporated in 1998, is promoted by Mr. Ranjeet Pawar. It is an authorised dealer of commercial vehicles (CVs) manufactured by Tata Motors Ltd (TML) and two wheelers manufactured by Hero Motocorp Ltd (Hero Motocorp). The company operates three showrooms, all in Maharashtra, one each in Ahmednagar and Satara for TML's CVs and one for Hero Motocorp's two wheelers in Pune. SMPL also deals in spares and provides vehicle servicing. SHYAM COTTEX: ICRA Reaffirms 'B' Rating on INR4cr Cash Loan ----------------------------------------------------------- ICRA has reaffirmed the [ICRA]B rating to the INR1.38 crore term loan facility and INR4.00 crore fund-based cash credit of Shyam Cottex. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based Cash Credit Limit 4.00 [ICRA]B; Reaffirmed Short Term Fund Based- Warehousing Limit 1.38 [ICRA]B; Reaffirmed The rating continues to be constrained by SC's low profitability at operating and net levels, though, the revenue increased significantly in FY2015-16 as it was its first full year of operations. The financial profile of the firm has remained weak as witnessed from its low profitability, weak debt coverage indicators, and moderately leveraged capital structure. The ratings are 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 SC 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, favourably factors in the long experience of the partners in the cotton industry and the favourable location of the firm's manufacturing facility, giving it easy access to raw material ICRA expects SC's revenues to witness a marginal growth during FY2016-17, mainly due to weak market conditions faced by the cotton industry. The profitability is expected to be in line with the previous fiscals, given the stable outlook on prices. However, the firm's ability to scale up the operations would be largely contingent to improvement in international demand, given the seasonality in the business, volatility in prices of cotton, high competitive intensity and the uncertain regulatory scenario. Further, the firm's ability to infuse funds to support its capital structure and manage its working capital efficiently would be a key rating sensibility. Established in April 2014, Shyam Cottex is a partnership firm, engaged in the business of ginning and pressing of raw cotton to produce cotton bales and cotton seeds. The manufacturing facility of the firm is located at Jivapar, (distt: Rajkot) and is currently equipped with 24 ginning machines and 1 pressing machine having a capacity to produce 250 cotton bales per day. The firm mainly deals in Shankar-6 type of raw cotton. Recent Results For the year ended 31st March, 2015, the firm reported an operating income of INR7.96 crore with profit after tax (PAT) of INR0.06 crore within 2 months of its operations in the year. Further during FY 2015-16 as per provisional unaudited numbers; the company has reported operating income of INR41.95 crore with profit after taxes of INR0.11 crore. SIXTH ENERGY: Ind-Ra Assigns BB+ Long-Term Issuer Rating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sixth Energy Technologies Private Limited (SETPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect SETPL's small scale of operations and its working capital intensive nature of business. The company's provisional FY16 financials indicate revenue of INR305.5 mil. (FY15: INR188.1 mil.) and a net cash cycle of 280 days (295 days). The net cash cycle is long due to the long inventory holding period of 156 days in FY16 (FY15: 218 days) on the back of a long gestation period for the confirmation of orders from the date of installation of the equipment. It had an outstanding order book of INR153.5 mil. (0.5x FY16 revenue) at end-mid-May 2016. The ratings further reflect SETPL's moderate liquidity indicated by its average maximum fund-based limit utilization being around 91% during the 12 months ended April 2016. The ratings, however, factor in SETPL's comfortable credit metrics with the EBITDA interest coverage (operating EBITDA/gross interest expenses) of 7.99x in FY16 (FY15: 6.19x ), net leverage (total adjusted net debt/operating EBITDAR of 1.42x (1.66x) and EBITDA margin of 21.65% (19.86%). The ratings are further supported by over a decade of operating experience of its directors in the field of machine data technology. RATING SENSITIVITIES Positive: A substantial increase in the revenue while maintaining the profitability and the current credit metrics could be positive for the ratings. Negative: A decline in the profitability or an elongation in net cash cycle leading to deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Incorporated in 2003, SETPL is a Bangalore-based company providing end-to-end remote management solutions for data centers, businesses, banks, telecom and enterprise infrastructures. The company remotely monitors and manages power and cooling equipment in telecom towers (BSC, BTS), telecom switching centers (MSC), data centers, industrial locations, enterprise buildings, off-grid and grid-tie renewable energy power stations. SETPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB+'/Stable -- INR60 mil. fund-based working capital limits: assigned 'IND BB+'/Stable -- INR39 mil. packing credit: assigned 'IND BB+'/Stable SOMNATH AGRO: ICRA Assigns 'B' Rating to INR5.0cr Cash Loan ----------------------------------------------------------- The long-term rating of [ICRA]B has been assigned to the INR0.42 crore term loan facility and the INR5.00 crore cash credit facility of Somnath Agro Industries. The short term rating of [ICRA]A4 has also been assigned to the INR1.00 crore short term fund based facilities(sub-limit of cash credit) of SAI. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund Based-Term Loans 0.42 [ICRA]B assigned Long term fund Based-Cash Credit 5.00 [ICRA]B assigned Short term fund based- Export Packing Credit cum Foreign Bills Purchased/Foreign Bills Discounted (1.00) [ICRA]A4 assigned The assigned ratings are constrained by Somnath Agro Industries' weak financial risk profile, characterised by thin profitability, following the trading nature of business, leveraged capital structure and moderate debt protection metrics. The profitability is further dependent on the seasonality of various agro products as well as crop harvest; high level of competition and high fragmentation resulting from low entry barriers, which limits the pricing power of the firm and puts pressure on the margins. ICRA also notes that SAI is a partnership firm; any substantial withdrawal would adversely affect its net worth and thereby its capital structure. The rating, however, positively factors in the long established experience of the partners in the agro commodities industry. ICRA also notes SAI's favourable location in Gujarat, enabling easy availability of various agro-products like sesame seeds, wheat and cumin seeds etc. and also the stable demand prospects in domestic as well as the international market. Somnath Agro Industries (SAI) was established in February 2012 as a partnership firm by Mr. Hitesh Mendha and Mr. Lalit Rupala. However, in January 2015 Mr. Lalit Rupala retired and Mrs. Charmiben Mendha was inducted as an investing partner. The firm processes (cleans and sorts) agro commodities like sesame seeds, cumin seeds, wheat, mustard seeds etc., with the key product being sesame seeds, from its processing facility located at Halvad, Gujarat. Its plant has an installed capacity of 21,600 metric tonnes per annum (MTPA). Currently, the operations of the firm are managed by Mr. Hitesh Mendha. Recent Results During FY2015, the firm reported an operating income of INR46.62 crore and profit after tax of INR0.05 crore as against an operating income of INR20.68 crore and profit after tax of INR0.02 crore during FY2014. Further during first eleven months of FY2016, the firm reported an operating income of Rs 39.79 crore and profit before tax of Rs 0.52 crore (as per provisional financials). SREE PANDIAN: CRISIL Suspends 'B' Rating on INR137MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Sree Pandian Spinning Mill Private Limited (SPSMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 137 CRISIL B/Stable Long Term Loan 13 CRISIL B/Stable The suspension of rating is on account of non-cooperation by SPSMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPSMPL is yet to provide adequate information to enable CRISIL to assess SPSMPL'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' SPSMPL, incorporated in 2006 in Arupukkottai (Tamil Nadu), manufactures cotton yarn. It is promoted by Mr. Ramesh. SRI KAMATCHI: CRISIL Suspends B+ Rating on INR57.5MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Kamatchi Traders (SKT). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 57.5 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 9.5 CRISIL B+/Stable Short Term Bank Facility 3.0 CRISIL A4 The suspension of ratings is on account of non-cooperation by SKT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SKT is yet to provide adequate information to enable CRISIL to assess SKT's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 1985 as a partnership firm in Chennai, SKT processes pulses, mainly urad and toor dal, to produce flour used by food processing players. The firm's daily operations are managed by managing partner Mr. S C Mohan. STAARLIGHT DESIGNS: CRISIL Reaffirms B+ Rating on INR30MM Loan -------------------------------------------------------------- CRISIL's rating on the bank facilities of Staarlight Designs (SD) continue to reflect SD's modest scale of operations in the intensely competitive and highly fragmented ready-made garments (RMG) industry, and moderate financial risk profile. These rating weaknesses are partially offset by the extensive industry experience of the promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed) Export Packing Credit 30.0 CRISIL B+/Stable (Reaffirmed) Foreign Demand Bill Purchase 26.0 CRISIL A4 (Reaffirmed) Long Term Loan 7.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 33.0 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes SD will continue to benefit over the medium term from the extensive experience of the promoters, and established client relationships. The outlook may be revised to 'Positive' if significant improvement in revenue and profitability results in a stronger financial risk profile. Conversely, the outlook may be revised to 'Negative' if decline in revenue or profitability, deterioration in working capital management, or any large debt- funded capital expenditure weakens financial metrics and liquidity. Update Revenue estimated to decline by 20 percent to around INR200 million in 2015-16 (refers to financial year, April 1 to March 31) over the previous year, mainly on account of lower demand and off take. However, operating margin was stable at 5.5 percent. With gross current assets estimated at 140 days as of March 2016, operations continue to be working capital intensive, primarily on account of sizeable inventory and debtors. Financial risk profile is moderate with comfortable gearing and debt protection metrics, and improved net worth following infusion of capital. Liquidity remains adequate, backed by adequate cash accrual for debt servicing, and moderate bank limit utilisation. Established in 1999, SD manufactures and exports knitted garments to companies in Europe. The firm has its manufacturing facility at Tirupur (Tamil Nadu) and is promoted by Mr. B.M Ravichandran and Mr. M. Karuppusamy. Profit after tax and operating income increased to INR3.7 million and INR241.9 million in 2014-15, from INR3.6 million and INR213.9 million, respectively, in 2013-14. Turnover was estimated at INR200 million in 2015-16. SWAMY COTTON: CRISIL Suspends 'B' Rating on INR170MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Swamy Cotton Mill Tirupur Private Limited (SCMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6.5 CRISIL A4 Cash Credit 170.0 CRISIL B/Stable Letter of Credit 20.0 CRISIL B/Stable Long Term Loan 53.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SCMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCMPL is yet to provide adequate information to enable CRISIL to assess SCMPL'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' SCMPL, set up in 1972, manufactures fabric. The company's day-to- day operations are managed by Mr. E Manoj Kumar. THERMO PRODUCTS: CRISIL Suspends 'D' Rating on INR45.5MM LT Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Thermo Products Private Limited (TPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 38 CRISIL D Long Term Loan 45.5 CRISIL D The suspension of rating is on account of non-cooperation by TPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TPPL is yet to provide adequate information to enable CRISIL to assess TPPL'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' TPPL, incorporated in 2005, is part of the Prakash group. The company manufactures moulded thermocol products that are used in packaging of consumer electronics. TPPL runs a sub-assembly line in Ranjangaon (Pune, Maharashtra) and a thermocol moulding unit in Sanaswadi (Pune). THIRUCHY STEELS: CRISIL Suspends B+ Rating on INR60MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Thiruchy Steels (TS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by TS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TS is yet to provide adequate information to enable CRISIL to assess TS'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' TS, established in 1989 is a proprietorship firm trading in scrap steel. The firm is based in Chennai. The proprietor, Mr. B. Rajagopal, oversees daily operations. THOPPIL CONTRACTORS: CRISIL Suspends B Rating on INR120MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Thoppil Contractors India Pvt Ltd (TCIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B/Stable The suspension of rating is on account of non-cooperation by TCIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TCIPL is yet to provide adequate information to enable CRISIL to assess TCIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' Set up in 2010, TCIPL undertakes civil construction work in Kerala for government undertakings and programmes. The company's day-to-day operations are managed by its chief executive officer, Mr. Renjith. TOYOP RELIEF: ICRA Suspends B-/A4 Rating on INR32.5cr Loan ---------------------------------------------------------- ICRA has suspended [ICRA]B-/A4 rating assigned to the INR32.50 crore bank facilities of Toyop Relief Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Toyop Relief Private Limited (TRPL) is a Mumbai-based company founded in 1994. TRPL was started as a proprietorship firm (Sabra Exim Investments) by Mr. Sachin Shah. In 2004, the name of the firm was changed to "Toyop Relief", and was reconstituted as a private limited company in 2008. TRPL -- a closely held company - -- operates as a supplier of disaster relief material, including kitchen accessories, plastic toiletries, hygiene kits, blankets, buckets, tarpaulin tents, etc. TRPL caters to various non- governmental organizations (NGOs) located abroad. It also imports and trades in power tillers and specialty plastic granules that have an application in the plastic industry. The specialty plastic granules business was under Toyop & Co, a proprietorship concern of Mr. Sachin Shah, which was merged with TRPL in 2009. TRANSMISSION CORP: ICRA Reassigns D Rating to INR350cr Loan ----------------------------------------------------------- ICRA has re-assigned ratings on the INR975 crore long term bond programme of Transmission Corporation of Andhra Pradesh Limited to [ICRA]D. ICRA had earlier assigned a rating of [ICRA]A(SO) with negative outlook to the aforesaid bond programmes of AP Transco. Amount Facilities (INR crore) Ratings ---------- ----------- ------- AP Transco Vidyut Bond Series I/2006 200 [ICRA]D reassigned AP Transco Vidyut Bond Series II/2006 300 [ICRA]D reassigned AP Transco Vidyut Bond Series I/2007 125 [ICRA]D reassigned AP Transco Vidyut Bond Series I/2008 350 [ICRA]D reassigned ICRA's rating was based on the strength of unconditional and irrevocable guarantees from the Government of Andhra Pradesh (pre-bifurcation) and the structured payment mechanism designed to ensure timely payment on the rated bonds. ICRA notes that the Trustee did not invoke the guarantee, leading to delays on the debt servicing in the recent past. Since the structured payment mechanism involving timely invocation of the guarantee by the Trustee in the event of a funding shortfall has not functioned, the existing rating on the bonds is not meaningful. The ratings of the aforesaid bonds programme of AP Transco were placed on watch with developing implications in June 2014 post bifurcation of the state of Andhra Pradesh into Telangana and Residuary Andhra Pradesh (Andhra Pradesh) on June 2, 2014. In accordance with the section 53 of The Andhra Pradesh Reorganisation Act, 2014, AP Transco has been bifurcated into two successor entities namely Transmission Corporation of Telangana Limited (TS Transco) and AP Transco (for residual Andhra Pradesh). The demerger plan indicating segregation of assets and liabilities between the two successor entities has been submitted to the Sheela Bhide committee (appointed by the Government of India). ICRA notes that there is lack of clarity on the final apportionment of assets and liabilities between the successor entities of AP Transco. Resolution of the terms of bifurcation between the two entities will remain critical to ensure timely servicing of debt obligations going forward. Transmission Corporation of Andhra Pradesh Limited (AP Transco) was incorporated in the year 1998 subsequent to the first transfer scheme of State Electricity Reform Act for unbundling of erstwhile Andhra Pradesh State Electricity Board into two entities, Andhra Pradesh Transmission Corporation Limited and Andhra Pradesh Generation Corporation Limited (APGENCO). As per the Electricity act, 2003 "Transcos" are not allowed to trade in power, thus necessitating separation of trading and transmission functions. Currently, AP Transco is engaged in transmission and state load dispatch-center activities. TRIDENT AUTO: Ind-Ra Suspends IND BB- Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Trident Auto Components Private Limited's (TACPL) Long-Term Issuer Rating of 'IND BB-' to the suspended category. The Outlook was Stable. The rating will now appear as 'IND BB-(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for TACPL. 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. TACPL's ratings: -- Long-Term Issuer Rating: migrated to 'IND BB-(suspended)' from 'IND BB-'/Stable -- INR150 mil. fund-based working capital limits: migrated to Long-term 'IND BB-(suspended)' from Long-term 'IND BB-' and Short-term 'IND A4+(suspended)' from Short-term 'IND A4+' -- INR12.50 mil. non-fund-based working capital limits: migrated to Long-term 'IND BB-(suspended)' from Long-term 'IND BB-' and Short-term 'IND A4+(suspended)' from Short- term 'IND A4+' -- INR16.68 mil. term loans: migrated to Long-term 'IND BB-(suspended)' from Long-term 'IND BB-' U.S. IMPEX: CRISIL Reaffirms 'B' Rating on INR100MM Cash Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facility of U.S. Impex (USI) continues to reflect the firm's weak financial risk profile because of a high total outside liabilities to tangible net worth ratio and weak interest coverage ratio. The rating also factors in a small scale of operations in the non-ferrous alloys trading industry. These rating weaknesses are partially offset by the extensive industry experience of the firm's promoter and its established and diversified clientele. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes USI will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' in case of significant growth in turnover along with sustained profitability, leading to higher cash accrual. Conversely, the outlook may be revised to 'Negative' if liquidity weakens substantially because of large working capital requirement. USI was set up in 1994 as a proprietorship firm in Delhi by Mr. Dinesh Mittal. The firm trades in various non-ferrous metals and scrap, such as zinc, aluminium, brass, and copper, with zinc accounting for more than 50 per cent of its revenue. Net profit was INR2.05 million on net sales of INR511 million in 2014-15 (refers to financial year, April 1 to March 31), against a net profit of INR2.07 million on net sales of INR496 million in 2013-14. UBJ BROADCASTING: CRISIL Suspends B+ Rating on INR200MM Term Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of UBJ Broadcasting Private Limited (UBJ; part of the TVL group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 200 CRISIL B+/Stable The suspension of rating is on account of non-cooperation by UBJ with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, UBJ is yet to provide adequate information to enable CRISIL to assess UBJ'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 the rating, CRISIL has combined the business and financial risk profiles of UBJ, TV Vision Ltd (TVL), MPCR Broadcasting Service Pvt Ltd (MPCR), and HHP Broadcasting Services Pvt Ltd (HHP). This is because all these companies, together referred as the TVL group, are engaged in the broadcasting business, are under a common management, and have fungible cash flows. Moreover, these companies are expected to be merged together over the medium term. TVL, incorporated in 2007, is a fully owned subsidiary of Sri Adhikari Brothers Television Network Ltd (SABTNL). It broadcasts four channels including those through its wholly owned subsidiaries, UBJ, MPCR, and HHP. It is currently operating a free-to-air (FTA) general entertainment channel (GEC), Mastii, in Hindi. The channel commenced commercial operations in 2010. UBJ, incorporated in 2009, is currently operating an FTA regional GEC, Dhamaal, in Hindi in Madhya Pradesh, Chhattisgarh, Rajasthan, and Gujarat. The channel commenced commercial operations in 2011-12 (refers to financial year, April 1 to March 31). MPCR, incorporated in 2009, is currently operating an FTA regional GEC, MaiBoli, in Marathi in Maharashtra. The channel commenced commercial operations in 2011-12. HHP, incorporated in 2009, is currently operating an FTA regional GEC, Dabangg, in Hindi in Uttar Pradesh, Bihar, Jharkhand, and Uttaranchal. The channel commenced commercial operations in 2011-12. VIJAY KAMAL: ICRA Withdraws 'B' Rating on INR70cr Bank Loan ----------------------------------------------------------- ICRA has withdrawn the [ICRA]B rating assigned to the INR70.00 crore proposed bank limit of Vijay Kamal Properties Private Limited, as the company has not availed the proposed bank facility. There is no amount outstanding against the rated instrument. Vijay Kamal Properties Pvt Ltd was incorporated on February 16, 2000 with the main objective of undertaking real estate development in and around Mumbai. The company is a part of the Mumbai-based Ravi Group which was founded by Mr. Tokarshi S. Shah over four decades ago. The promoter group specializes in rehabilitation and redevelopment projects. The group has completed over 40+ projects having total saleable area of 5.5 million sq. ft. in an around Mumbai. ========= J A P A N ========= TAKATA CORP: Up to 30 Potential Investors Show Initial Interest --------------------------------------------------------------- Naomi Tajitsu and Maki Shiraki of Reuters report that as many as 30 potential investors have indicated initial interest in providing financial support for embattled Japanese air bag maker Takata Corp, two people briefed on the talks said. About half of those communicating their interest to Takata's newly appointed restructuring adviser are from the auto industry, one of the sources told Reuters. At least one private equity investor has already expressed interest in offering financial support to the auto parts supplier, Reuters says. According to Reuters, the identities of the potential investors were not immediately known and it was not clear how many of them were serious about making an investment in Takata. Takata and Lazard (LAZ.N), the investment bank overseeing the search for a financial sponsor for Takata, declined to comment, Reuters notes. Reuters says Takata is seeking financial support as it faces mounting liabilities related to a massive global recall of its potentially faulty air bag inflators, which can explode with excessive force and spray metal shrapnel into vehicle compartments. The defect has been linked to 13 deaths and around 100 injuries globally, mainly in the United States. Reuters relates that the company has said it would consider a drastic review of its inflator division as well as the sale of non-core businesses as part of its restructuring efforts, after a handful of automakers, including Takata's biggest client Honda Motor Co, said they would stop using Takata inflators for new models. Valient Market Research has forecast the supplier's global share of the inflator market will sink to around 5 percent by 2020, from 22 percent in 2015, according to Reuters. The company's other businesses, including seat belt and steering wheel manufacturing, may remain profitable operations, it has said. Other people with knowledge of the discussions said the committee overseeing a resolution to Takata's financial and operational issues anticipates an agreement between the auto parts supplier, a financial sponsor and automaker customers may be reached by November, Reuters states. Potential investors that have already expressed interest in the company include private equity fund KKR (KKR.N) and Chinese auto supplier Ningbo Joyson Electronic Corp, Reuters adds. Reuters reports that Takata CEO Shigehisa Takada has offered to resign once an agreement is reached over a financial rescue for the company, one of the sources said. The report says fifty-year-old Takada, the grandson of the company's founder, has been widely criticized for keeping a low profile even as the air bag crisis escalated in past years, while Takata has been accused of mishandling and manipulating safety data. The company has been under pressure for delays over identifying and replacing air bag inflators. Since recalls began in 2008, more than 100 million inflators are slated to be withdrawn worldwide by the end of 2019, and new recalls are being announced on a near-weekly basis, Reuters discloses. To date, automakers that use air bags from Takata, one of three major global suppliers, have paid for the cost of the recalls as Takata and the automakers are yet to arrive at a consensus on what is the root cause of the fault with its air bag inflators, notes Reuters. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/--develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. ==================== S O U T H K O R E A ==================== DAEWOO SHIPBUILDING: Prosecution to Uncover More Accounting Fraud ----------------------------------------------------------------- Yonhap News Agency reports that prosecution investors believe they have found evidence of additional accounting fraud at Daewoo Shipbuilding & Marine Engineering Co., informed sources said June 19, that, if confirmed, will point to more pervasive and prolonged illegal activities by the troubled company than previously thought. According to the report, sources, who spoke on condition of anonymity, said the prosecution have found evidence of accounting fraud worth trillions of won between 2006 and 2014. Such a report follows the recent outcome of an audit by the state watchdog that concluded the ailing shipbuilder had rigged its books to hide up to KRW1.5 trillion (US$1.28 billion) in losses between 2013 and 2014, according to the report. Yonhap relates that the outcome of the probe by the Board of Audit and Inspection was based on an analysis of orders for 40 offshore plants won by the South Korean shipyard over the cited period. The ongoing prosecution investigation, on the other hand, evaluated all 500-odd orders clenched by Daewoo Shipbuilding since 2006, according to the sources, Yonhap relays. Yonhap relates that additional findings by the prosecution also indicate that the company should have reflected a KRW2-trillion loss in its books in 2013-2014, instead of KRW1.5 trillion cited by the state watchdog, they added. According to Yonhap, losses from the cited period reportedly remained hidden and snowballing until last year when the company reported an annual operating loss of KRW5.5 trillion in an apparent one-time write-off known as a big bath. Yonhap notes that the company, along with two other major shipbuilders here, are currently undergoing self debt- restructuring plans. The three shipbuilders, including Hyundai Heavy Industries and Samsung Heavy Industries, reported a combined loss of KRW7.7 trillion in 2015 alone, Yonhap discloses. Headquartered in Seoul, South Korea, Daewoo Shipbuilding & Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in building ships and offshore structures. Its product portfolio includes commercial ships, such as liquefied natural gas (LNG) carriers, oil tankers, containerships, liquefied petroleum gas (LPG) carriers, pure car carriers; offshore structures, such as FPSO vessels, drilling rigs, drillships and fixed platforms, and naval vessels, including submarines, destroyers, rescue ships and patrol boats. ********* 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 ***