/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/161027.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 Thursday, October 27, 2016, Vol. 19, No. 213 Headlines A U S T R A L I A A CONSOLIDATED: First Creditors' Meeting Set for Nov. 2 MOD DESIGN: First Creditors' Meeting Set for Nov. 3 NEPEAN REFRIGERATION: ASIC Accepts EU from Liquidator PLYMPTON STEEL: First Creditors' Meeting Set for Nov. 4 RED ROCK: First Creditors' Meeting Slated for Nov. 4 C H I N A LDK SOLAR: Liquidation Approved and Buyer Selected I N D I A ABHIGNA RICE: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan ABHYUDAYA FARMS: CRISIL Suspends 'B' Rating on INR80MM Loan ALMO LAMINATES: CRISIL Suspends B+ Rating on INR40MM LT Loan AMBANI VITRIFIED: CRISIL Suspends B+ Rating on INR140MM LT Loan ARMAAX AUTO: CRISIL Lowers Rating on INR41.5MM Demand Loan to B- ASL LOGISTICS: CRISIL Suspends 'B' Rating on INR29.8MM LT Loan ATTINKARA ELECTRONICS: CRISIL Suspends 'B' Rating on INR40MM Loan AXLEO INDUSTRIES: CRISIL Lowers Rating on INR43.3MM Loan to 'D' B. ONE: Ind-Ra Assigns 'IND BB+' LT Issuer Rating BALAJI COTTON: CRISIL Suspends 'B' Rating on INR150MM Cash Loan CHANDRA PRABHU: CRISIL Lowers Rating on INR30MM Cash Loan to B CMRGS INFRASTRUCTURE: CRISIL Suspends B+ Rating on INR55MM Loan DAMODAR TIMBER: CRISIL Lowers Rating on INR180MM Loan to 'D' DEV RAJ: CRISIL Lowers Rating on INR97.5MM Term Loan to 'D' EKTA TRUST: CRISIL Suspends B- Rating on INR80MM Term Loan ESSAR STEEL: Farallon Offers INR1,500 crore Bridge Equity G J FERNANDEZ: CRISIL Suspends B- Rating on INR15MM Cash Loan GALCO EXTRUSIONS: CRISIL Reaffirms B+ Rating on INR70MM Loan GANPATI ISPAT: CRISIL Hikes Rating on INR85MM Cash Loan to B+ GRECCY KNIT: CRISIL Reaffirms B- Rating on INR54.3MM Term Loan HARSHGEET OVERSEAS: CRISIL Ups Rating on INR100MM Cash Loan to B+ INSTRUMENT TECHNOLOGIES: CRISIL Suspends B Rating on INR35MM Loan JANACHAITANYA HOUSING: CRISIL Suspends D Rating on INR53MM Loan JAY JAGANNATH: CRISIL Suspends D Rating on INR174.9MM Term Loan K. R. V. SPINNING: CRISIL Reaffirms B+ Rating on INR94.4MM Loan KEVIN INDIA: CRISIL Assigns 'B+' Rating to INR96MM Loan KRIPTON GRANITO: CRISIL Assigns B+ Rating to INR200MM Term Loan MAHARASHTRA ENGINEERING: CRISIL Cuts Rating on INR57MM Loan to B- MAJOLICA IMPEX: CRISIL Suspends 'D' Rating on INR150MM Loan NAGARWALA ENTERPRISES: CRISIL Suspends B+ Rating on INR100MM Loan NARAYANI HOTELS: CRISIL Suspends B- Rating on INR736.9MM Loan ORCHARD FOODS: CRISIL Assigns 'B' Rating to INR50MM Cash Loan R. G. INDUSTRIES: CRISIL Assigns 'B' Rating to INR220MM LT Loan S.N.G. AGRO: CRISIL Suspends B+ Rating on INR80MM Cash Loan S.N.G. TRADING: CRISIL Suspends B+ Rating on INR90MM Cash Loan SANMARG PROJECTS: Ind-Ra Assigns IND BB- Long Term Issuer Rating SARASWATI MOTORS: Ind-Ra Suspends 'IND B' Long Term Issuer Rating SHIV SHAKTI: CRISIL Suspends B+ Rating on INR100MM Cash Loan SHREEJEE COTEX: CRISIL Raises Rating on INR35MM Loan to 'B+' SHRI JANKI: Ind-Ra Assigns 'IND BB-' Long Term Issuer Rating SRI LOKESH: CRISIL Suspends 'B' Rating on INR70MM Credit Limit SRI MANJUNATHA: CRISIL Suspends 'B' Rating on INR45MM Cash Loan SRIVENKATA RAMANJANEYA: CRISIL Suspends B+ Rating on INR60MM Loan ST. XAVIER'S: CRISIL Reaffirms 'D' Rating on INR123.3MM LT Loan V3 MEGACORP: CRISIL Suspends 'D' Rating on INR180MM Term Loan VAIDHATRU PHARMA: CRISIL Suspends D Rating on INR95MM LT Loan I N D O N E S I A LIPPO KARAWACI: Fitch Rates Proposed US$ Sr. Unsec. Notes 'BB-' N E W Z E A L A N D PUMPKIN PATCH: Appoints McGrathNicol as Administrators PUMPKIN PATCH: Receivers Say Store Closures Likely S I N G A P O R E EZRA HOLDINGS: May Relook Investments in Insolvent Perisai S O U T H K O R E A * SOUTH KOREA: IMF Estimates Corp. Restructuring Cost at KRW31TT T A I W A N HTC CORP: Posts NT$1.8BB Net Loss in Quarter Ended Sept. - - - - - ================= A U S T R A L I A ================= A CONSOLIDATED: First Creditors' Meeting Set for Nov. 2 ------------------------------------------------------- A first meeting of the creditors in the proceedings of A Consolidated Employment Service (A.C.E.S) Pty Ltd, formerly trading as "ACES", will be held at the Offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram Street, in West Perth, on Nov. 2, 2016, at 10:00 a.m. Kimberley Stuart Wallman of HLB Mann Judd was appointed as administrator of A Consolidated on Oct. 23, 2016. MOD DESIGN: First Creditors' Meeting Set for Nov. 3 --------------------------------------------------- A first meeting of the creditors in the proceedings of Mod Design Group Pty Ltd will be held at Level 10, 575 Bourke Street, in Melbourne, on Nov. 3, 2016, at 10:00 a.m. David Ingram and David Ross of Hall Chadwick Chartered Accountants were appointed as administrators of Mod Design on Oct. 24, 2016. NEPEAN REFRIGERATION: ASIC Accepts EU from Liquidator ----------------------------------------------------- The Australian Securities & Investments Commission has accepted an enforceable undertaking (EU) from Sydney-based registered liquidator, Clifford John Sanderson of Dissolve Pty Ltd as Trustee for the Dissolve Unit Trust, following an ASIC review of an external administration that found he failed to adequately and properly discharge his duties as a registered liquidator. Mr. Sanderson has undertaken to: -- engage an independent expert at his own cost to review his insolvency practice and to conduct quality reviews on three external administrations, and -- complete 60 hours of Continuing Professional Development within 12 months including a minimum of 20 hours of CPD relating to insolvency courses provided by ARITA. ASIC reviewed Mr. Sanderson's external administration of Nepean Refrigeration and Air Conditioning Pty Ltd (now deregistered) and found he failed to adequately discharge his duties in that he: * did not conduct a real property search in circumstances where the director's report as to affairs, or the books and records provided to him, did not disclose the company's entitlement to any real estate * did not undertake adequate investigations into the company's assets (including real property, plant & equipment and debtors) * did not prepare, or alternatively, properly document, his assessment of his independence prior to accepting the appointment as external administrator * did not make requests of the company's bookkeeper regarding the company's financial affairs * did not adequately review voidable transactions, including unfair preferences and uncommercial transactions, or alternatively, failed to adequately document that review, and * did not make a claim against the company's director for possible insolvent trading, despite identifying the possibility of such a claim to ASIC and creditors, or alternatively, did not properly document his reasons for not taking such action. ASIC Commissioner John Price said, 'Creditors have a right to know that liquidators undertake their work independently and competently. ASIC continues to work with practitioners to improve these aspects of their practices.' ASIC acknowledges Mr Sanderson's cooperation and notes that he undertook remedial action to address ASIC's concerns when ASIC brought the deficiencies in the discharge of his duties to his attention. PLYMPTON STEEL: First Creditors' Meeting Set for Nov. 4 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Plympton Steel Pty Ltd will be held at the offices of DuncanPowell, Level 4, 70 Pirie Street, in Adelaide, South Australia, on Nov. 4, 2016, at 10:30 a.m. Peter Lanthois and Christopher Powell of DuncanPowell were appointed as administrators of Plympton Steel on Oct. 25, 2016. RED ROCK: First Creditors' Meeting Slated for Nov. 4 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Red Rock Noodle Bar Australia Pty Ltd will be held at Level 4, 12 Pirie Street, in Adelaide, on Nov. 4, 2016, at 11:00 a.m. George Divitkos -- gdivitkos@brifsa.com.au -- and Alan Scott -- ascott@brifsa.com.au -- of BRI Ferrier were appointed as administrators of Red Rock on Oct. 25, 2016. ========= C H I N A ========= LDK SOLAR: Liquidation Approved and Buyer Selected --------------------------------------------------- PV Tech reports that former China-based integrated PV manufacturer LDK Solar, which entered liquidation proceedings in the Cayman Islands and bankruptcy in mainland China has resulted in major creditor losses and its wafer and cell production operations being acquired. The Cayman Islands registered LDK Solar entity previously entered bankruptcy proceedings in early 2014 after failing to repay a US convertible bond, according to according to PV Tech. After a lengthy restructuring the company exited insolvency proceedings in April, 2015 only to be liquidated a few months later and its China-based operations filed for restructuring proceedings with total liabilities of around US$5.2 billion and a deficit of over US$2.4 billion (as per 1H 2015), when the last financial statements were published, the report notes. The company had short-term borrowings, primarily with Chinese banks of over US$2.7 billion of which over US$1.4 billion had been outstanding as of June 30, 2015, the report discloses. The report says although Chinese banks are expected to have taken the largest hit in respect to the collapse, Kin-Ming Cheng, the owner of investment firm Fulai and major shareholder of Shunfeng International Clean Energy (SFCE) had also been an investor in LDK Solar's China operations. Creditors were said to expect to lose around 80% of their investments in the company, the report relays. However, instead of the expected acquisition of LDK Solar's assets, which included two idled polysilicon plants, wafer (4GW) and module assembly (1.5GW) capacity by SFCE, its wafer and module assets have be acquired by Henan Yicheng New Energy Co, which is a major supplier of wafer cutting materials, the report discloses. SFCE recently announced that it was seeking to sell its solar PV manufacturing operations (Wuxi Suntech) to major shareholder Kin Ming Cheng for around RMB 5 billion (US$760 million), the report says. During LDK Solar's restructuring several other potential buyers were indentified, which included GCL and JinkoSolar as well as former LDK founder, Peng Xiaofeng and chairmen of PV project developer, SPI Energy a former subsidiary of LDK Solar and separately listed on NASDAQ, the report relates. The report notes it is not clear what the plans are for LDK Solar's manufacturing operations under publically listed Yicheng New Energy and it remains unclear whether LDK Solar's idled polysilicon plants would secure a buyer. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com/-- based in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar in February 2014 filed in the Cayman Islands for the appointment of provisional liquidators, four days before it was due to make a $197 million bond repayment. Its Joint Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited. In September 2014, LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited each applied to file an originating summons to commence their restructuring proceedings in the High Court of Hong Kong. On Oct. 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc. filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The lead case is In re LDK Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384). On Oct. 21, 2014, LDK Solar filed a petition in the same U.S. Bankruptcy Court for recognition of the provisional liquidation proceeding in the Grand Court of the Cayman Islands. The Chapter 15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-12387). The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq., at Sidley Austin LLP, in Chicago, Illinois. The U.S. Debtors' Delaware counsel is Robert S. Brady, Esq., Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & 73 Taylor, LLP, in Wilmington, Delaware. The U.S. Debtors' financial advisor is Jefferies LLC. The Debtors' voting and noticing agent is Epiq Bankruptcy Solutions, LLC. The U.S. Debtors commenced the Chapter 11 Cases in order to implement the prepackaged plan of reorganization, with respect to which the U.S. Debtors launched a solicitation of votes on Sept. 17, 2014, from the holders of LDK Solar's 10% Senior Notes due 2014, as guarantors of the Senior Notes, and required such holders of the Senior Notes to return their ballots by Oct. 15, 2014. Holders of the Senior Notes voted overwhelmingly in favor of accepting the Prepackaged Plan. ========= I N D I A ========= ABHIGNA RICE: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan -------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Abhigna Rice and Parboiled Industries continues to reflect the firm's modest scale of operations in the intensely competitive rice milling industry, and the susceptibility of profitability margins to change in government regulations and paddy prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Reaffirmed) Long Term Loan 23 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 7 CRISIL B/Stable (Reaffirmed) The rating also factors in the modest financial risk profile, marked by modest net worth, high gearing and below-average debt protection metrics. These rating weaknesses are partially offset by partners' extensive industry experience. Outlook: Stable CRISIL believes that ARPI will continue to benefit over the medium term from partners' extensive experience. The outlook may be revised to 'Positive' in case of a substantial increase in scale of operations, while maintaining the profitability margins, or a substantial increase in net worth backed by capital infusion by partners. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability margins, or significant deterioration in capital structure, caused most likely by a large debt-funded capital expenditure or stretch in working capital cycle. Set up in 2012, ARPI mills and processes paddy into rice, rice bran, broken rice and husk. Its milling unit is in Mahbubnagar (Telangana). The firm has four partners: Mr. Kondaiah, Mr. Venkataiah, Mr. Narasimhulu and Mr. Bhaskar. ABHYUDAYA FARMS: CRISIL Suspends 'B' Rating on INR80MM Loan ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Abhyudaya Farms Pvt. Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable Long Term Loan 15 CRISIL B/Stable Working Capital Term Loan 30 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by AFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AFPL is yet to provide adequate information to enable CRISIL to assess AFPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Established in 1992 and based in Hyderabad (Telangana), AFPL is engaged in the poultry business and produces hatching eggs. The company is promoted by Mr. T. Narayana Reddy and his family. ALMO LAMINATES: CRISIL Suspends B+ Rating on INR40MM LT Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of Almo Laminates (P) Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable Long Term Loan 40 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 views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2010 and based in Hyderabad (Telangana), ALPL is promoted by Mr. Farukh Ali Khan, Mr. Syed Ali Naqui Mr. Kashif Ali Khan, Mr. Aga Zahid Hussain and Mr. Aga Mujahid Hussain. The company manufactures decorative laminates used for furnishing. AMBANI VITRIFIED: CRISIL Suspends B+ Rating on INR140MM LT Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ambani Vitrified Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 35 CRISIL A4 Cash Credit 70 CRISIL B+/Stable Long Term Loan 140 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by AVPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AVPL is yet to provide adequate information to enable CRISIL to assess AVPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. AVPL, established in Morbi in 2015, is promoted by Mr. Bhavesh Ambani, Mr. Pranjivan Ambani, and Mr. Ramniklal Patel. The company is setting up a facility for manufacturing ceramic vitrified tiles; it will commence operations by the end of October 2015. ARMAAX AUTO: CRISIL Lowers Rating on INR41.5MM Demand Loan to B- ---------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Armaax Auto Private Limited to 'CRISIL B-/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Proposed Long Term 13.6 CRISIL B-/Stable (Downgraded Bank Loan Facility from 'CRISIL B/Stable') Term Loan 18.4 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Working Capital 41.5 CRISIL B-/Stable (Downgraded Demand Loan from 'CRISIL B/Stable') Working Capital 26.5 CRISIL B-/Stable (Downgraded Term Loan from 'CRISIL B/Stable') The downgrade reflects weakening in the company's liquidity due to low cash accrual and stretched working capital cycle. Sluggish business will lead to barely sufficient cash accrual to meet debt obligation over the medium term. The stretch in the working capital cycle is reflected in gross current assets of 343 days as on March 31, 2016, limiting cushion in bank lines. Timely fund support from the promoters will be a critical driver of liquidity over the medium term. The rating reflects the company's large working capital requirement, weak liquidity, and fluctuations in its operating profitability due to volatility in raw material prices. These weaknesses are partially offset by its promoters' extensive experience in the tractor components industry, their financial support, and established relationships with customers and suppliers. For arriving at the rating, CRISIL had earlier combined the business and financial risk profiles of AAPL, Maharashtra Engineering, and Axleo Industries, as the three entities were managed by the same promoters, and had common suppliers and customers, and had considerable cash flow fungibility. While the shareholding in the entities remains the same, they now have limited cash flow fungibility. Hence, CRISIL has considered each entity's standalone business and financial risk profile for arriving at the rating. Outlook: Stable CRISIL believes AAPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if long-term fund infusion by the promoters shores up liquidity. The outlook may be revised to 'Negative' if decline in revenue or margin, stretch in working capital cycle, or reduction in promoter support weakens the financial risk profile. AAPL manufactures tractor components, primary for Mahindra & Mahindra Ltd ('CRISIL AAA/Stable/CRISIL A1+'). The company was established by Mr. R S Kamble in Mumbai. ASL LOGISTICS: CRISIL Suspends 'B' Rating on INR29.8MM LT Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of ASL Logistics Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 29.8 CRISIL B/Stable Overdraft Facility 25 CRISIL A4 Proposed Long Term Bank Loan Facility 5.2 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by ASL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ASL is yet to provide adequate information to enable CRISIL to assess ASL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. ASL was set up in 2011 by Mr. Mohit Nuwany and Mr. Ashok Nuwany. The company provides road transport services, and mainly caters to cement manufacturing companies. It is based in Mumbai, Maharashtra. ATTINKARA ELECTRONICS: CRISIL Suspends 'B' Rating on INR40MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Attinkara Electronics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable Proposed Long Term Bank Loan Facility 25 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by AE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AE is yet to provide adequate information to enable CRISIL to assess AE's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. AE was formed as a partnership firm in 1991 by brothers Mr. S Naushad and Mr. S Navas; Mr. S Navas left the firm and Mrs. Sudheena Naushad joined the firm in 2013. The firm trades in electronics consumer appliances and furniture. AXLEO INDUSTRIES: CRISIL Lowers Rating on INR43.3MM Loan to 'D' --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Axleo Industries to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long Term 32.7 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Term Loan 29 CRISIL D (Downgraded from 'CRISIL B/Stable') Working Capital 43.3 CRISIL D (Downgraded from Demand Loan 'CRISIL B/Stable') The downgrade reflects Axleo's delays in servicing its term loans because of weak liquidity due to a stretched working capital cycle. The firm expects its cash accrual to be inadequate to meet its debt obligation over the medium term. Axleo has large working capital requirement, weak liquidity, and volatile operating profitability because of fluctuations in raw material prices. However, it benefits from its promoters' extensive experience in the tractor components industry, and its steady relationships with customers and suppliers. For arriving at the rating, CRISIL had earlier combined the business and financial risk profiles of Armaax Auto Pvt Ltd, Maharashtra Engineering, and Axleo, as the entities were managed by the same promoters, had common suppliers and customers, and had cash flow fungibility. While the shareholding in the entities remains the same, they now have limited cash flow fungibility. Hence, CRISIL has now considered each entity's standalone business and financial risk profile to arrive at the rating. Axleo manufactures tractor components, primary for Mahindra & Mahindra Ltd ('CRISIL AAA/Stable/CRISIL A1+'). The firm was established by Mr R S Kamble in Mumbai. B. ONE: Ind-Ra Assigns 'IND BB+' LT Issuer Rating ------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned B. One Business House Private Limited a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect BOBHPL's moderate revenue base and moderate credit metrics. In FY16, the company'srevenue was INR892 mil. (FY15: INR611 mil.) with net leverage (Ind-Ra adjusted net debt/operating EBITDAR) of 1.2x (3.3x) and interest coverage (operating EBITDA/gross interest expense) of 1.8x (1.8x). The ratings are constrained by the fluctuations in BOBHPL's EBITDA margin, which ranged between 1.9%-3.0% over FY14-FY16, due to volatile seafood prices and currency fluctuations. BOBHPL's liquidity profile remains moderate with its fund-based facilities being utilised at an average of 87.05% over the 12 months ended August 2016. The ratings, however, are supported by the promoters' operating experience of over a decade in the sea food business. RATING SENSITIVITIES Positive: A substantial growth in the company's revenue along with the improvement in the profitability leading to a sustained improvement in the overall credit metrics could lead to a positive rating action. Negative: A significant decline in the profitability resulting in a sustained deterioration in the overall credit metrics of the company could lead to a negative rating action. COMPANY PROFILE BOBHPL was incorporated in October 2012 and started commercial operations in 18 April 2013. The company exports shrimp. Presently it is processing shrimp at three leased plant, namely, Alashore Marines Exports Pvt. Ltd., Balasore Marines Exports Pvt. Ltd. and SM Sea Marines Pvt. Ltd. The company has been registered with Marine Products Export Development Authority, a promotional body of the marine product of India. BOBHPL has proposed to set-up a new shrimp processing plant with cold storage capacity of 1600MT and a production capacity of 6000mtpa in Balasore, Odisha with a total project cost of INR230.15m. The operation at the new plant is likely to start from September 2017 BOBHPL is promoted by Mr. Bhabatosh Sahoo and Mrs. Krishna Sahoo. BOBHPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB+'/Stable -- INR150 mil. fund-based working capital limits: 'IND BB+'/Stable -- Proposed INR100 mil. fund-based working capital limits: 'Provisional IND BB+'/Stable -- Proposed INR150 mil. long-term loans: 'Provisional IND BB+'/Stable BALAJI COTTON: CRISIL Suspends 'B' Rating on INR150MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Balaji Cotton Trading Company. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by BCTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BCTC is yet to provide adequate information to enable CRISIL to assess BCTC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. BCTC was established in 2002 and is engaged in cotton ginning. The firm is located in Adilabad (Telangana) and operates with an installed ginning capacity of 400 bales per day. BCTC's managing partners, Mr. Ganesh Mukkawar and Mr. Girish Mukkawar, have more than 15 years of experience in the cotton ginning business. CHANDRA PRABHU: CRISIL Lowers Rating on INR30MM Cash Loan to B -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Chandra Prabhu International Ltd to 'CRISIL B/Stable' from 'CRISIL B+/Stable', while reaffirming the rating on the short- term bank facilities at 'CRISIL A4'. The rating action is based only on publicly available information as CPIL has not cooperated with CRISIL in its surveillance process. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Letter of credit & 120 CRISIL A4 (Reaffirmed) Bank Guarantee Proposed Long Term 60 CRISIL B/Stable (Downgraded Bank Loan Facility from 'CRISIL B+/Stable') The downgrade reflects CRISIL's belief that CPIL's business risk profile may remain weak over the medium term. Turnover declined to INR355 million in fiscal 2016 from INR486 million in fiscal 2015 and INR1 billion in fiscal 2014. The turnover remained muted at INR106 million in the first quarter of fiscal 2017, and is expected to remain at the fiscal's level for the year. Operating loss was at INR1.4 million in the first quarter of fiscal 2017; it is expected to close the year with a net loss. Moreover, negative margin was reported in fiscal 2016 against 0.8% in fiscal 2015. The business risk profile will remain modest over the medium term on account of a weak market scenario. The ratings reflect CPIL's susceptibility to risks related to cyclicality in prices of commodities traded in and to volatility in realisations from debtors. These weaknesses are partially offset by the extensive experience of promoters. Outlook: Stable CRISIL believes CPIL's business risk profile will remain vulnerable over the medium term to exposure to risks related to cyclicality in prices of commodities traded in. The outlook may be revised to 'Positive' if the scale of operations increases significantly, with substantial growth in traded volumes, or in case of a significant improvement in profitability. Conversely, the outlook may be revised to 'Negative' if profitability is lower than expected, weakening debt protection metrics, or if working capital management deteriorates. Incorporated in 1984 and based in New Delhi, CPIL is promoted by Mr Gajraj Jain. The company trades in coal and rubber, which contribute 50% each to the turnover. It procures coal from Coal India Ltd's subsidiaries based in North-East India and from traders, and supplies to brick manufacturers. It imports rubber for catering to footwear and tyre manufacturers. Operations are managed by Mr Akash Jain, son of Mr Gajraj Jain. CMRGS INFRASTRUCTURE: CRISIL Suspends B+ Rating on INR55MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of CMRGS Infrastructure Projects Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 55 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by CMRGS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CMRGS is yet to provide adequate information to enable CRISIL to assess CMRGS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. CMRGS was originally set up 1995 as partnership firm, which was reconstituted as a limited company with the current name in 2010. The company is engaged in civil engineering such as construction of roads, bridges and buildings. The company is promoted by three brothers: Mr. Chittaranjan Swain, Mr. Gyanranjan Swain, and Mr. Manoranjan Swain. DAMODAR TIMBER: CRISIL Lowers Rating on INR180MM Loan to 'D' ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of Damodar Timber Depot to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 1.5 CRISIL D (Downgraded from 'CRISIL A4') Letter of Credit 180.0 CRISIL D (Downgraded from 'CRISIL A4') Overdraft Facility 5.0 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects DTD's continuous devolvement of its letters of credit for more than 30 days, on account of weak liquidity. DTD has a weak financial risk profile because of a small net worth, high total outside liabilities to tangible net worth ratio, and below-average debt protection metrics. The ratings also factor in large working capital requirement, and susceptibility of profitability to fluctuations in foreign exchange rates. These rating weaknesses are partially offset by the extensive industry experience of the firm's partners. Established in 1977 by Mr. Devshi Patel, DTD trades in and saws timber. The firm mainly imports teakwood and hardwood from Myanmar, Latin America, and Africa. It also trades in cashews, from which it derives around 45 per cent of its revenue. DEV RAJ: CRISIL Lowers Rating on INR97.5MM Term Loan to 'D' ----------------------------------------------------------- CRISIL has downgraded its rating on the bank facility of Dev Raj Institute of Management and Technology Society to 'CRISIL D' from 'CRISIL B-/Stable.' The rating downgrade reflects instances of delay in servicing bank debt obligations, owing to stretched liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 97.5 CRISIL D (Downgraded from 'CRISIL B-/Stable') The rating factors in the weak financial risk profile, marked by negative networth, given the losses incurred by the institute, and subdued debt protection metrics. It also reflects the limited track record of operations and exposure to intense competition and stringent regulations. These rating weaknesses are partially offset by extensive experience of society members in the field of education. DRIMT was set up in 2010 by promoter and chairman, Mr Danish Gupta and his family, based in Ferozepur (Punjab). The society offers academic programmes through its institute, Dev Raj Group's Technical Campus. DRIMT is affiliated with the Punjab Technical University (PTU), Jalandhar, and approved by All India Council for Technical Education (AICTE), Ministry of Human Resource Development. EKTA TRUST: CRISIL Suspends B- Rating on INR80MM Term Loan ---------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Ekta Trust (Ekta). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 80 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by Ekta with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Ekta is yet to provide adequate information to enable CRISIL to assess Ekta's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. About the Trust Ekta, based out of Sabarkantha (Gujarat), offers undergraduate courses. The trust started operations in 1991, and currently offers degree and diploma courses in engineering and nursing. ESSAR STEEL: Farallon Offers INR1,500 crore Bridge Equity --------------------------------------------------------- The Economic Times reports that the Ruias of the heavily indebted Essar Group have told lenders that American hedge fund Farallon Capital Management has offered "bridge equity" to the tune of INR1,500 crore to help bolster efforts to revive Essar Steel, said multiple sources aware of ongoing negotiations. Under the plan, Farallon is supposed to take a quasi-equity exposure in an offshore vehicle controlled by the Essar promoters, the report says. ET relates that this entity will in turn invest the money in Essar Steel's equity. According to the report, the investment will be against shares pledged by Essar Group founders Shashi and Ravi Ruia, who will repay the hedge fund once the Rosneft-Essar Oil deal is completed. Farallon will receive a fixed return on its investment if the deal goes through. According to the report, the promoters of Essar Steel are supposed to channel $300 million from the sale of their Essar Oil stake to Rosneft and others into the steel business as part of their equity contribution in the recovery plan that is being negotiated with lenders. If the money isn't repaid, Farallon will end up owning a significant chunk of Essar Steel. Farallon declined to comment, the report notes. With $21.5 billion of assets under management, San Francisco- headquartered Farallon manages equity capital for institutions, including colleges, endowments, charitable foundations, pension funds and ultra high networth individuals, says ET. Having invested INR847 crore in seven Indiabulls Real Estate projects in 2007, it exited with a42% gain in six years. In 2008, Farallon teamed up with steel magnate Lakshmi Mittal to buy 37.5% of Indiabulls' power unit for about $400 million. According to TOI, Essar's steel business has INR44,000 crore of debt amid sluggish sales. The group owns a 10 million tonne steel plant in Gujarat. The company's consortium of 30 lenders has been engaged in intense negotiations for nearly a year on loan recoveries after the company failed to meet payment obligations. ET adds that the lenders, led by State Bank of India, are open to restructuring debt only if the promoters plough their own funds into the business as equity along with personal guarantees. They have also sought a 49% stake in the steel maker. ET reported on October 19 that the lenders want the Ruias to make a INR2,500-crore equity contribution, more than what the promoters had agreed to invest and indicating that the banks are in no mood to ease pressure on the group. "Essar Steel has submitted a restructuring proposal to the lenders which is under discussion," ET quotes Essar Group CFO V Ashok as saying. "You would appreciate that it would be inappropriate for us to comment on ongoing discussions. We are hopeful of an expeditious completion of the exercise." Earlier this month, the Ruia family announced the sale of a 98% stake in Essar Oil to Russia's Rosneft, commodities trader Trafigura and United Capital Partners for $10.9 billion (INR72,800 crore), ET recalls. The proceeds will be used to pay debt and stabilise the steel, ports and power units, ET states. Incorporated in 1976, Essar Steel India Ltd. (ESIL) is a part of the Essar Group and is having 10 MTPA integrated steel manufacturing facilities at Hazira, Gujarat and iron ore beneficiation and pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag, Andhra Pradesh (8 mtpa). The company also owns and operates two iron ore slurry pipelines -- one each in Odisha (Dabuna to Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the iron ore slurry from the beneficiation plant (located near the iron ore mines in Dabuna and Kirandul) to the pellet plant (located near the Paradip and Vizag ports). A large portion of the iron ore pellets produced are intended for captive consumption by ESIL's steel plant at Hazira for cost optimization. As reported in the Troubled Company Reporter-Asia Pacific on April 11, 2016, CARE reaffirmed the rating on various bank facilities and instruments of Essar Steel India Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short term Bank Facilities 42,100 CARE D Reaffirmed Non-Convertible Debenture Issue 312 CARE D Reaffirmed Rating Rationale The ratings reflect the ongoing delays in servicing of debt obligations by the company. G J FERNANDEZ: CRISIL Suspends B- Rating on INR15MM Cash Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of G J Fernandez, Engineers & Contractors. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL A4 Cash Credit 15 CRISIL B-/Stable Letter of Credit 1 CRISIL A4 The suspension of ratings is on account of non-cooperation by GJFEC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GJFEC is yet to provide adequate information to enable CRISIL to assess GJFEC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. GJFEC was set up by Mr. G J Fernandez in 1947. The firm undertakes civil construction works, which includes setting up concrete spillways, power houses, sheds and facilities. The firm is based in Secunderabad (Telangana), and its operations are concentrated mainly in Karnataka, Telangana, and Andhra Pradesh. GALCO EXTRUSIONS: CRISIL Reaffirms B+ Rating on INR70MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of Galco Extrusions Pvt Ltd reflects GEPL's below-average financial risk profile marked by a modest net worth, high gearing and moderate debt protection metrics and its modest scale of operations in an intensely competitive industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable (Reaffirmed) Proposed Long Term 36.5 CRISIL B+/Stable (Reaffirmed) Bank Loan Facility Term Loan 50 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by the promoter's extensive experience in the aluminium extrusions industry and their funding support. Outlook: Stable CRISIL believes that GEPL will continue to benefit over the medium term from its promoters' extensive industry. The outlook may be revised to 'Positive' in case of significantly better cash accruals or substantial equity infusion along with efficient working capital management. Conversely, the outlook maybe revised to 'Negative' in case of further pressure on the company's liquidity emanating from lower than expected cash accruals, or larger than expected working capital requirements, or large debt- funded capital expenditure. Incorporated in 2007, GEPL manufactures aluminium extrusions since 2010. The company is headquartered in Ahmednagar (Maharashtra) and is owned and managed by Mr. Sandesh Lodha and family. GANPATI ISPAT: CRISIL Hikes Rating on INR85MM Cash Loan to B+ ------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facility of Ganpati Ispat to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 85 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects significant improvement in the firm's liquidity, driven by stronger cash accrual and funding support from its promoters. Its net cash accrual rose to INR14 million in fiscal 2016 from INR3 million in the previous year, and is expected to exceed INR12 million annually over the medium term, comfortably covering debt obligations. The accrual increased largely due to rise in revenue and profitability because of increasing demand, leading to a better financial risk profile. Gearing improved to 0.38 time as on March 31, 2016, from 0.80 time a year earlier, and interest coverage ratio rose to 2.7 times in fiscal 2016 from 1.9 times in the previous fiscal. The financial risk profile is expected to remain above average, with gearing of less than 0.7 time over the medium term because of absence of large debt-funded capital expenditure (capex) plan. Additionally, prudent working capital management led to moderate bank limit utilisation, at an average of 72% over the six months through September 2016. The promoters have supported operations by extending unsecured loans of INR27.5 million as of March 2016. GI's liquidity should remain comfortable over the medium term, underpinned by moderate cash accrual and expected funding support from promoters whenever necessary. The rating reflects GI's average scale of operations in the highly fragmented mild steel (MS) billets industry, low profitability, and susceptibility to economic downturns and to volatility in steel prices. These weaknesses are partially offset by the firm's above-average financial risk profile because of healthy gearing, and its promoters' extensive industry experience and funding support. Outlook: Stable CRISIL believes GI will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if revenue and profitability improve, resulting in substantial increase in cash accrual and better debt protection metrics. The outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, weakens because of large incremental working capital requirement, low cash accrual, or considerable debt-funded capex. GI was taken over by its present promoters, members of the Raipur-based Goyal family, in 2004. The firm manufactures MS billets and channels at its unit in URLA Industrial Area in Raipur. GRECCY KNIT: CRISIL Reaffirms B- Rating on INR54.3MM Term Loan -------------------------------------------------------------- CRISIL's ratings on long term bank facilities of Greccy Knit continues to reflect exposure to risks related to its ongoing project, its modest scale of operations and weak financial risk profile. These rating weaknesses are partially offset by the extensive experience of the promoters in the textile industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7.5 CRISIL B-/Stable (Reaffirmed) Term Loan 54.3 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that GK will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company stabilises its operations earlier than expected, leading to substantial increase in scale of operations and large cash accruals, thus improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of low accruals because of reduced profitability, or weakening of financial risk profile, most likely because of stretch in working capital cycle or delay in stabilising its operations. Incorporated in 2014, GK is a partnership firm, which is setting up a unit to manufacture grey fabrics, to be used in sarees and other garments. It is being promoted by Mr.Bharat Zalavadiya and his son Mr.Gaurang Zalavadiya. Mr.Bharat has been in the textile industry for about 17 years now, through other group concern, Gaurang Synthetics. HARSHGEET OVERSEAS: CRISIL Ups Rating on INR100MM Cash Loan to B+ ----------------------------------------------------------------- CRISIL has upgraded its rating on the bank facility of Harshgeet Overseas to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The ratings upgrade reflects improvement in the business risk profile of the company. The revenues of the company improved in 2015-16 to around INR500 million from INR300 million in 2014-15 on account of improved orders received by the firm in cotton trading activity. The business risk profile of the company is also marked by stable operating margins in the range of 2-2.5 per cent for the past 5 years ending 2015-16. CRISIL believes that the company's business risk profile will continue to improve on the back of new orders from the cotton trading activity. The rating upgrade also reflects the well managed working capital cycle of the firm marked by Gross Current Assets days of around 60 days as on 31st March 2016, thus reflecting in moderate utilization of bank limits of 42 per cent through the 12 months ending June 2016. The company is expected to generate net cash accruals of INR3-3.5 million against term debt obligations of around INR1.5 million over the medium term. The financial risk profile of the company is marked by weak capital structure and debt protection metrics. The rating upgrade also reflects the extensive business experience of promoter in the cotton trading industry through their family business. These rating strengths are partially offset by the modest scale of operations in the intensely competitive and highly fragmented cotton trading industry, and its below-average financial risk profile, marked by a high total outside liabilities to tangible net worth ratio and moderate debt protection metrics. Outlook: Stable CRISIL believes that Harshgeet will continue to benefit over the medium term from its promoter extensive experience in the cotton trading industry. The outlook may be revised to 'Positive' if the firm significantly increases its scale of operation and profitability or if the promoters infuse substantial capital, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm reports low accruals because of decline in revenue or profitability, or if its working capital requirements increase leading to deterioration in its liquidity, or if the firm undertakes any debt-funded capital expenditure programme. Set up in 2011, Harshgeet trades in raw cotton. Based in Sendhwa (Madhya Pradesh), the firm is promoted by Mr. Jaideep Singh Rajpal. INSTRUMENT TECHNOLOGIES: CRISIL Suspends B Rating on INR35MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Instrument Technologies. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL B/Stable Long Term Loan 20 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by INST with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, INST is yet to provide adequate information to enable CRISIL to assess INST's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Promoted by N.S.S.N Raju as a partnership firm, INST is engaged in developing software products, providing installation and maintenance support for electrical and electronic equipment's for government agencies and private organizations. The firm was formed in the year 2001 and is based out of Visakhapatnam, Andhra Pradesh. JANACHAITANYA HOUSING: CRISIL Suspends D Rating on INR53MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Janachaitanya Housing Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 53 CRISIL D The suspension of ratings is on account of non-cooperation by JHPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JHPL is yet to provide adequate information to enable CRISIL to assess JHPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. JHPL, promoted by Mr. M Sudhakar and Ms. M Sakuntala, became operational in 1985 as Janachaitanya Real Estate Developers, a partnership firm, in Guntur (Andhra Pradesh). In March 1990, the firm was reconstituted as a private limited company with the current name. JAY JAGANNATH: CRISIL Suspends D Rating on INR174.9MM Term Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Jay Jagannath Steel and Power Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 11 CRISIL D Cash Credit 134 CRISIL D Term Loan 174.9 CRISIL D Working Capital Term Loan 26.8 CRISIL D The suspension of ratings is on account of non-cooperation by JJSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JJSPL is yet to provide adequate information to enable CRISIL to assess JJSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2008, JJSPL is promoted by Mr. Mukesh Agarwal and his family members. JJSPL manufactures sponge iron in Rourkela (Odisha). It has total capacity of 400 tonnes per day at its facility in Rourkela (Odisha). K. R. V. SPINNING: CRISIL Reaffirms B+ Rating on INR94.4MM Loan --------------------------------------------------------------- CRISIL's rating on the bank facilities of K. R. V. Spinning Mills Private Limited continues to reflect KSPL's small scale of operations, exposure to volatility in cotton prices and below- average financial risk profile marked by high gearing. These rating weaknesses are partially offset by its promoters' extensive experience in the cotton yarn industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 62.5 CRISIL B+/Stable (Reaffirmed) Long Term Loan 94.4 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that KSPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company generates better cash accruals along with efficient working capital management, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in its financial risk profile owing to low cash accruals or large working capital requirements or debt- funded capital expenditure. KSPL, incorporated in 1990, manufactures cotton yarn. The company's manufacturing unit is at Nangavalli in Salem (Tamil Nadu). KEVIN INDIA: CRISIL Assigns 'B+' Rating to INR96MM Loan ------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Kevin India Co. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Bill Purchase 96 CRISIL B+/Stable The rating reflects extensive experience of the promoter in the chemical trading business and healthy relationships with customers. These rating strengths are partially offset by modest scale of operations, exposure to intense competition, and the below-average financial risk profile, because of low networth, high external liabilities and average interest coverage. Outlook: Stable CRISIL believes KIC will continue to benefit from extensive experience of promoters. The outlook may be revised to 'Positive' in case of significant improvement in revenue, profitability and capital structure. The outlook may be revised to 'Negative', in case of lower-than-expected growth in revenue and profitability, or if stretch in the working capital cycle weakens the capital structure and debt protection metrics. KIC was set up by proprietor, Mr. Kevin Vinod Mehta in 1995. The Mumbai-based firm exports dyes, dyes intermediate, pigment powder, pigment emulsion and agrochemicals, across 26 countries. The firm reported a profit after tax of INR5.6 million on net sales of INR721.3 million for fiscal 2016, against INR4.7 million and INR673.9 million for fiscal 2015. KRIPTON GRANITO: CRISIL Assigns B+ Rating to INR200MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Kripton Granito Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 200 CRISIL B+/Stable Bank Guarantee 35 CRISIL A4 Cash Credit 60 CRISIL B+/Stable The ratings reflect KGPL's start-up phase and expected modest scale of operations in the highly competitive ceramic tiles industry. The ratings also factor in the company's large expected working capital requirements. These rating weaknesses are partially offset by the extensive industry experience of KGPL's promoters and the benefits it derives from its favourable location in Morbi (Gujarat), the hub of the ceramics industry in India. Outlook: Stable CRISIL believes that KGPL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if KGPL stabilises its operations on time, leading to substantial cash accruals and improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of low accruals because of low order flow or profitability, or weakening of financial risk profile because of substantial working capital requirements or debt-funded capital expenditure. Kripton Granito Private Limited (KGPL) is a Morbi, Gujarat based firm which was established on March, 2016 as a private limited company. The company is setting up a manufacturing facility for ceramic vitrified tiles. The company is expected to commence its operations commercially by the starting of financial year 2017- 18. MAHARASHTRA ENGINEERING: CRISIL Cuts Rating on INR57MM Loan to B- ----------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Maharashtra Engineering to 'CRISIL B-/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Term Loan 28 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable') Working Capital 57 CRISIL B-/Stable (Downgraded Demand Loan from 'CRISIL B/Stable') The downgrade reflects weakening in the firm's liquidity due to low cash accrual and stretched working capital cycle. Sluggish business will lead to barely sufficient cash accrual to meet debt obligation over the medium term. The stretch in the working capital cycle is reflected in gross current assets of 343 days as on March 31, 2016, limiting cushion in bank lines. Timely fund support from the promoters will be a critical driver of liquidity over the medium term. The rating reflects ME's large working capital requirement, weak liquidity, and fluctuations in operating profitability due to volatility in raw material prices. These weaknesses are partially offset by its promoters' extensive experience in the tractor components industry, their financial support, and established relationships with customers and suppliers. For arriving at the rating, CRISIL had earlier combined the business and financial risk profiles of Armaax Auto Pvt Ltd, ME, and Axleo Industries, as the three entities were managed by the same promoters, had common suppliers and customers, and had considerable cash flow fungibility. While the shareholding in the entities remains the same, they now have limited cash flow fungibility. Hence, CRISIL has now considered each entity's standalone business and financial risk profiles for arriving at the rating. Outlook: Stable CRISIL believes ME will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if long-term fund infusion by the promoters shores up liquidity. The outlook may be revised to 'Negative' if decline in revenue or margin, stretch in working capital cycle, or reduction in promoter support weakens the firm's financial risk profile. ME manufactures tractor components, primary for Mahindra and Mahindra Ltd ('CRISIL AAA/Stable/CRISIL A1+'). The firm was established in by Mr R S Kamble in Mumbai. MAJOLICA IMPEX: CRISIL Suspends 'D' Rating on INR150MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Majolica Impex Private Limited (part of the Majolica group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Exchange Forward 4.8 CRISIL D Letter of Credit 150.0 CRISIL D Post Shipment Credit 90.0 CRISIL D The suspension of ratings is on account of non-cooperation by MIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MIPL is yet to provide adequate information to enable CRISIL to assess MIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MIPL, Angel Exim Private Ltd (AEPL), and STMPL Enterprises Pvt Ltd. This is because all these entities, together referred to as the Majolica group, are under the same management team, have common promoters, and are engaged in similar lines of business. The Majolica group trades in ceramic and porcelain tiles and timber. Incorporated in 2011, MIPL is promoted by Ahmedabad (Gujarat)-based Mithiborwala family. NAGARWALA ENTERPRISES: CRISIL Suspends B+ Rating on INR100MM Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Nagarwala Enterprises (part of Nagarwala group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 60 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by NE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NE is yet to provide adequate information to enable CRISIL to assess NE's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. NE was established in 1980 as a partnership firm by Mr. Narendra Nagarwala and his mother. Currently, Mr. Nagarwala and his wife, Mrs. Jyoti Nagarwala, are the partners. The firm is engaged in ginning and pressing of raw cotton. NCPPL and NC also have the Nagarwala family as promoters and are in the same line of business as NE. NARAYANI HOTELS: CRISIL Suspends B- Rating on INR736.9MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Narayani Hotels and Resorts Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Guarantee 19 CRISIL A4 Proposed Long Term Bank Loan Facility 124.1 CRISIL B-/Stable Term Loan 736.9 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by NHRL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NHRL is yet to provide adequate information to enable CRISIL to assess NHRL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. NHRL was established in 1993, but became fully operational in 1998-99. The company has restaurant and banquet facilities in Ahmedabad (Gujarat; near the airport), and provides catering services across Gujarat, Rajasthan, and Madhya Pradesh. ORCHARD FOODS: CRISIL Assigns 'B' Rating to INR50MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Orchard Foods Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 2 CRISIL B/Stable Cash Credit 50 CRISIL B/Stable Long Term Loan 3 CRISIL B/Stable The rating reflects Orchard's below-average financial risk profile, marked by a low net worth, weak debt protection metrics and exposure to intense competition in the agro commodities trading industry. These weaknesses are partially offset by the extensive experience of Orchards' promoters in the agro commodities trading business. Outlook: Stable CRISIL believes Orchard will continue to benefit from the industry experience of its promoters. The outlook may be revised to 'Positive' if scale of operations and profitability increases and working capital requirement is stable. The outlook may be revised to 'Negative' if decline in profitability or large working capital requirement weakens the financial risk profile. Set up in 2013 in Thiruvarur (Tamil Nadu) by Mr A S Sharath Chandran, his son Mr Shiyaam and Ms.R S Sumathi, Orchard trades in orid dal, toor dal, moong dal, chick peas and green peas. Mr Sharath Chandran manages the daily operations of the company. R. G. INDUSTRIES: CRISIL Assigns 'B' Rating to INR220MM LT Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of R. G. Industries (RGI; part of the Sachdeva group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 220 CRISIL B/Stable Bank Guarantee 60 CRISIL A4 Cash Credit 170 CRISIL B/Stable The ratings reflect a modest scale of operations in an intensely competitive industry, and large working capital requirement leading to high gearing. These rating weaknesses are partially offset by the extensive experience of the promoters in manufacturing iron fittings and valves. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of RGI, Sachdeva Metal Works (SMW), and Water Wealth Infra Tech India Pvt Ltd. This is because these entities, together referred to as the Sachdeva group, have operational linkages, the same management, and a common marketing network. Outlook: Stable CRISIL believes the Sachdeva group will continue to benefit from the extensive industry experience of its promoters, and their established relationship with customers and suppliers. The outlook may be revised to 'Positive' in case of substantial improvement in the capital structure and working capital management, while sales and operating margin increase. The outlook may be revised to 'Negative' if sluggish demand results in significant decline in sales and profitability and leads to a pile-up of inventory, or in case of large, debt-funded capital expenditure, further weakening the financial risk profile, especially liquidity. The Sachdeva group is owned and managed by Mr Arvinder Pal Singh, and his brothers, Mr Daljit Singh and Mr Varpreet Singh. The group is based in Jalandhar, Punjab. SMW, established in 1996, manufactures valves under the brand SACHDEVA. RGI, established in 2005, manufactures high quality Ductile Iron Fittings (sizes 80 mm to 1000 mm) and Cast Iron Fittings (80 mm to 600 mm) fittings under the brand RG. WWIPL, undertakes turnkey projects for laying of pipes for government departments, including municipalities. Both SMW and RGI have manufacturing facilities in Jalandhar, and cater to both government departments, including municipalities, and private contractors. S.N.G. AGRO: CRISIL Suspends B+ Rating on INR80MM Cash Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of S.N.G. Agro Impex Pvt Ltd (part of the SNG group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 45 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SNGAIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SNGAIPL is yet to provide adequate information to enable CRISIL to assess SNGAIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2008-09 (refers to financial year, April 1 to March 31), SNGAIPL is a Delhi-based company that processes and trades in rice, pulses and agricultural commodities. The company's operations are managed by Mr. Nitin Aggarwal, Mr. Mayank Gupta and Mr. Kumar Gaurav. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SNGAIPL and its associate concern, S.N.G. Trading Company (SNGTC). This is because the two entities, together referred to as the SNG group, are in the same line of business, are managed by the same promoters, and have fungible finances. S.N.G. TRADING: CRISIL Suspends B+ Rating on INR90MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of S.N.G. Trading Company (SNGTC; part of the SNG group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 35 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SNGTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SNGTC is yet to provide adequate information to enable CRISIL to assess SNGTC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SNGTC was incorporated in 2005-06 (refers to financial year, April 1 to March 31) by Mr. Kumar Gaurav. It processes and trades in rice, pulses and agricultural commodities on job work basis. SANMARG PROJECTS: Ind-Ra Assigns IND BB- Long Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sanmarg Projects Private Limited a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect SPPL's small scale of operations and weak EBITDA margin. The company posted a revenue of INR512.71m and an EBITDA margin of 4.57% in FY16. The ratings are further constrained by the weak leverage ratio (total adjusted net debt/ operating EBITDAR) of 3.97x and stressed liquidity position as evident from the 96.75% cash credit utilisation on average during the 12 months ended September 2016. The ratings are, however, supported by the promoter's around three decades of experience in engineering services for the energy sector. The ratings are further supported by SPPL's satisfactory interest coverage (operating EBITDA/gross interest expense) of 2.38x in FY16 and strong debt to equity ratio of 1.1x (FY15: 0.7x). RATING SENSITIVITIES Negative: Deterioration in the EBITDA margin resulting in deterioration in the credit metrics will be negative for the ratings. Positive: Significant improvement in the revenue leading to improvement in the credit metrics will be positive for the ratings. COMPANY PROFILE SPPL was incorporated in 2007 and initially undertook integrated operations and maintenance of oil and gas assets. In 2013, SPPL started providing industrial consultation and construction supervision. The company's office is in Noida, Uttar Pradesh. SPPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB-'/Stable -- INR25 mil. fund-based facilities: assigned 'IND BB-/Stable/'IND A4+' -- INR40 mil. non-fund-based facilities: assigned 'IND A4+' SARASWATI MOTORS: Ind-Ra Suspends 'IND B' Long Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Saraswati Motors' 'IND B' Long-Term Issuer Rating to the suspended category. The Outlook was Stable. The rating will now appear as 'IND B(suspended)' on the agency's website. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for Saraswati. 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. Saraswati's ratings: -- Long-Term Issuer Rating: migrated to 'IND B(suspended)' from 'IND B'/Stable -- INR25 mil. fund-based working capital limits: migrated to 'IND B(suspended)' from 'IND B'/Stable -- INR35 mil. Long-terms loan: migrated to 'IND B(suspended)' from 'IND B'/Stable SHIV SHAKTI: CRISIL Suspends B+ Rating on INR100MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Shiv Shakti Rice Mills (Karnal). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SSRM with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSRM is yet to provide adequate information to enable CRISIL to assess SSRM's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SSRM is a Karnal (Haryana)-based partnership firm, established by Mr. Nathi Ram, Mr. Madan Lal, Mr. Ram Phal, and Mr. Ram Pal in 1989. The firm mainly mills and markets high-grade variety of basmati and non-basmati rice, such as Parmal. SHREEJEE COTEX: CRISIL Raises Rating on INR35MM Loan to 'B+' ------------------------------------------------------------ CRISIL has upgraded its rating on long-term bank facilities of Shreejee Cotex - Shahada to 'CRISIL B+/Stable' from 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Term Loan 30 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') The upgrade reflects improvement in the business risk profile, driven by revenue growth in fiscal 2016, which was the first full year of operations. Scale of operations rose by over 90% year-on- year to INR283 million for fiscal 2016, and is expected to record steady growth, backed by longstanding presence of partners in the cotton industry. Healthy operating margin of around 7% is also likely to be sustained over the medium term. The rating also factors the average financial risk profile, as reflected in moderate gearing of around 1.5 times and networth of INR41 million, estimated as on March 31, 2016. Debt protection metrics were also modest, with net cash accrual to total debt and interest coverage ratios of around 0.16 times and 2.1 times, estimated in fiscal 2016. Sufficient cash accrual against debt obligation and regular funding support from promoters via unsecured loans (Rs 27.20 million as on March 31, 2016), have kept liquidity comfortable. The rating also reflects the small scale of operations and exposure to intense competition, regulatory changes and volatile raw material prices. These weaknesses are partially offset by extensive experience of partners in the cotton ginning and pressing industry. Outlook: Stable CRISIL believes SC will continue to benefit from extensive experience of its partners. The outlook may be revised to 'Positive' if significant increase in scale of operations and sustained profitability lead to high cash accrual and controlled working capital cycle. The outlook may be revised to 'Negative' if revenue and profitability are lower-than-anticipated or if stretch in the working capital cycle, weakens the financial risk profile, particularly liquidity. About the Firm SC was established in September 2014 by Mr Ajay Goyal and his family members. The firm, which commenced operations in November 2014, gins and presses cotton and trades in cotton bales. Facilities at Nandurbar (Maharashtra), have installed capacity to process 1,500 quintals of raw cotton per day. SHRI JANKI: Ind-Ra Assigns 'IND BB-' Long Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Shri Janki Foodgrains Private Limited a Long-Term Issuer Rating of 'IND BB- '. The Outlook is Stable. KEY RATING DRIVERS The ratings are based on FY17 expectations as the company was operational for only 10 months in FY16. Ind-Ra expects that during FY17 with the stabilisation of operations, SJFPL will be able to increase its capacity utilisation and add new customers, which will lead to improvement in revenue. The ratings are constrained by SJFPL's lack of operational track record with INR349.27 mil. of revenue in 10MFY16 (provisional). The ratings further reflect weak net financial leverage (total adjusted net debt/operating EBITDAR) of 4.27x in 10MFY16. The ratings, however, derive support from more than five years of experience of the company' promoters in rice milling. The ratings factor in the availability and abundance of raw materials. The ratings are further supported by satisfactory operating EBITDA margins of 8.80% and satisfactory interest coverage (operating EBITDA/gross interest expense) of 2.11x in 10MFY16. The ratings further factor in the company's comfortable liquidity position as evident from 94.05% cash credit utilisation on an average during the 12 months ended August 2016. RATING SENSITIVITIES Negative: Deterioration in EBITDA margin resulting in deterioration in the credit metrics could be negative for the ratings. Positive: Improvement in revenue leading to significant improvement in the credit metrics could be positive for the ratings. COMPANY PROFILE SJFPL was incorporated in 2012 and is engaged in rice milling. The company has its office in Varanasi (Uttar Pradesh). SJFPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB-'/Stable -- INR113 mil. term loan: assigned 'IND BB-'/Stable -- INR50 mil. fund-based facilities: assigned 'IND BB-'/Stable/'IND A4+' SRI LOKESH: CRISIL Suspends 'B' Rating on INR70MM Credit Limit -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Lokesh Enterprises. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B/Stable Proposed Cash Credit Limit 70 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SLE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SLE is yet to provide adequate information to enable CRISIL to assess SLE's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Set up as a sole proprietorship firm by Mr. D. Srinivasa Rao, SLE is engaged in trading of tobacco. The firm is based out of Ongole in Andhra Pradesh. SRI MANJUNATHA: CRISIL Suspends 'B' Rating on INR45MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Manjunatha Traders. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B/Stable Long Term Loan 10 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SMT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SMT is yet to provide adequate information to enable CRISIL to assess SMT's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Set up in 2007 as a partnership firm, SMT is engaged in milling and processing of paddy into rice, rice bran, broken rice and husk. Its rice mill is located in Nizamabad (Telangana). Presently, there are two partners in the firm: Mr.Lakshmi Kanth and Mr.Satya Prakash. SRIVENKATA RAMANJANEYA: CRISIL Suspends B+ Rating on INR60MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Srivenkata Ramanjaneya Trading Company. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable SME Credit 2.5 CRISIL B+/Stable Term Loan 5.5 CRISIL B+/Stable Working Capital Demand Loan 20.0 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SVRTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SVRTC is yet to provide adequate information to enable CRISIL to assess SVRTC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. SVRTC, a partnership firm, was set up in 2012 by Mr. V Prakasa Rao and Ms. V Jaya. The firm mills and processes paddy into rice; it also generates by-products, such as broken rice, bran, and husk. It is based in Krishna district. ST. XAVIER'S: CRISIL Reaffirms 'D' Rating on INR123.3MM LT Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of St. Xavier's Educational Trust continues to reflect instances of delay in servicing obligations towards the term loan, as cash flow mismatches in the fee collection period weakened liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit/ Overdraft facility 61 CRISIL D (Reaffirmed) Long Term Loan 123.3 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 115.7 CRISIL D (Reaffirmed) The rating also factors in the modest scale of operations and exposure to regulatory risks, associated with educational institutions. These rating weaknesses are offset by the extensive experience of the promoter. Update SXET continues to delay its debt servicing owing to its weak liquidity. This is primarily on account of inherent cash flow mismatches between the fee collection period and repayment schedule. CRISIL believes that SXET's liquidity will continue to remain weak over the medium term. SXET was set up in the Tirunelveli district (Tamil Nadu) by Dr Cletus Babu in 1989. The trust runs various institutions, offering graduate and post-graduate courses in Tamil Nadu. V3 MEGACORP: CRISIL Suspends 'D' Rating on INR180MM Term Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of V3 Megacorp International Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 87 CRISIL D Cash Credit 55 CRISIL D Letter of Credit 3 CRISIL D Long Term Loan 5.2 CRISIL D Proposed Long Term Bank Loan Facility 30.4 CRISIL D Working Capital Term Loan 180.0 CRISIL D The suspension of ratings is on account of non-cooperation by V3 with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, V3 is yet to provide adequate information to enable CRISIL to assess V3's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. V3, incorporated in 2006, is promoted by Mr. Vighnaprabodhan Thanneermalai. The company fabricates structural components for the power, cement, and sugar industries, and for industrial plants. VAIDHATRU PHARMA: CRISIL Suspends D Rating on INR95MM LT Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Vaidhatru Pharma Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL D Cash Credit 30 CRISIL D Long Term Loan 95 CRISIL D The suspension of ratings is on account of non-cooperation by VPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VPPL is yet to provide adequate information to enable CRISIL to assess VPPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key factor in its assessment of credit risk. Incorporated in 2007, VPPL is promoted and managed by Mr. T Sudhakar Babu. The company has it registered office in Hyderabad (Telangana) and has recently set up a bulk drugs manufacturing facility in Raichur (Karnataka). The facility started operations in March 2013. ================= I N D O N E S I A ================= LIPPO KARAWACI: Fitch Rates Proposed US$ Sr. Unsec. Notes 'BB-' --------------------------------------------------------------- Fitch Ratings assigned Indonesia-based PT Lippo Karawaci TBK's (Lippo, BB-/A+(idn)/Stable) proposed US dollar-denominated senior unsecured notes an expected rating of 'BB-(EXP)'. The notes will be issued by Lippo's wholly owned subsidiary, Theta Capital Pte Ltd, and guaranteed by Lippo and its subsidiaries. The proposed notes are rated at the same level as Lippo's senior unsecured rating, as they represent the company's unconditional, unsecured and unsubordinated obligations. The final rating is contingent on the receipt of final documents conforming to information already received. Lippo expects to utilise the net proceeds from a successful issuance to buy back its existing USD403.3m senior unsecured 6.125%-coupon notes due in 2020, which will push back a bulk of its debt maturities. The company's earliest significant debt maturity will then be in 2022, when its USD410m senior unsecured 7%-coupon notes fall due. Lippo's ratings reflect our view that the slowdown in contracted sales in 2015 and 6M16 is mostly cyclical and that the company's credit profile remains intact. This is supported by its strong recurring cash flows from its leading domestic hospital network, retail malls, asset management fees and two Singapore-listed REITs. Lippo also owns a land bank of around 15.5 million square meters as of June 30, 2016, and has a strong domestic franchise as a leading property developer. The company cut its capex significantly this year to conserve liquidity. Fitch expects these factors to help Lippo maintain its financial profile within the parameters of its 'BB-' Long-Term Issuer Default Rating. KEY RATING DRIVERS Slower Presales, Asset Sales: Lippo sold just IDR602bn of residential property in 6M16 - a sharp decline from the IDR2.7trn sold in 6M15. This was due to the company postponing its property launches until after the government's tax-amnesty ruling was passed in July 2016. Lippo has since scheduled new launches for 4Q16 to take advantage of improving domestic consumer sentiment. Fitch continues to expect the company to achieve around IDR3trn in annual property sales in 2016 (2015: IDR3.6trn). "Although we expected Lippo to sell two of its mature malls/hospitals worth IDR1.7trn to its Singapore-listed REITs this year, the company now expects to sell the second property worth IDR900bn only in 1Q17." Fitch said. Flexible Capex: Lippo has significant flexibility to defer capex during times of weak presales, which supports its ratings. The company has curtailed its 2016 capex to around IDR3.3trn, which is less than half of its initial budget. This is because much of its capex included discretionary land banking and construction costs contingent on selling a minimum value of new projects. Improving Macroeconomic Sentiment: Domestic consumer sentiment has been improving since 2Q16, fuelled by lower commodity price volatility and a more stable exchange rate. The government's infrastructure expansion programme also had better traction compared with 2015 and its tax amnesty programme, announced in July 2016, has performed better than the government expected. Real estate developers, such as Lippo, stand to directly benefit from any wealth repatriated as part of the programme, which has to be invested in either real estate or government securities. "We expect increased domestic declarations of wealth to help more consumers purchase property, which they had put on hold following the government's increased scrutiny around tax evasion since 2015." Fitch said. Indicators of real economic activity, such as domestic traffic volumes and automobile sales, are also rising; see Fitch: Indonesia Economic Rebound to Spur Industrial-Land Demand , dated 29 August 2016. Strong Recurring Cash Flows: Lippo owns a large portfolio of assets that generated recurring operating EBITDAR (before operating lease rents) of IDR2.2 tril. in the 12 months to end- June 2016 (LTM 2Q16). Over 60% of these recurring cash flows stem from one of Indonesia's largest private hospital networks, which Lippo owns, for which there is stable demand. The remainder comprises of one of Indonesia's largest retail mall franchises, several hotels and educational institutions as well as dividend income from its REITs. Recurring EBITDAR covered Lippo's consolidated interest and operating lease payments by 1.3x in LTM 2Q16, which underpins its ratings. Limited Rating Headroom: Lippo's leverage stood at 48% at end- June 2016, broadly flat from end-June 2015 despite significantly lower contracted sales this year. This was supported by cash collected on presales made in prior years, capex cuts and a stronger Indonesian rupiah. However, Lippo's leverage is close to the 50% threshold beyond which the ratings may be negatively affected. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Residential contracted sales of IDR3trn in 2016 -- Asset sales to REITs of IDR800bn in 2016 and IDR900bn in 1Q17. -- Capex of IDR3.3trn in 2016 RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- A sustained increase in leverage to more than 50% -- A sustained weakening in the ratio of EBITDAR from recurring sources/interest cost and operating lease rent to below 1.2x -- Inability to pre-fund capex Positive: A rating upgrade is not expected in the medium-term due to Lippo's smaller operating scale and recurring income-base compared with higher-rated international peers. "We also expect Lippo's leverage to remain high over the medium-term as it executes its expansion plans." Fitch said. ==================== N E W Z E A L A N D ==================== PUMPKIN PATCH: Appoints McGrathNicol as Administrators ------------------------------------------------------ Australian Associated Press reports that Pumpkin Patch has been tipped into receivership by its lenders and has appointed voluntary administrators after failing to reinvent itself in the face of shrinking sales and too much debt. Auckland-based Pumpkin Patch's board appointed McGrathNicol's Andrew Grenfell and Conor McElhinney as administrators and said it understood KordaMentha's Neale Jackson and Brendon Gibson had been named receivers, AAP relates. Last week, the retailer said there was virtually no value left in its equity after talks with its lender ANZ Bank New Zealand fell through, the report says. "Despite considerable efforts by the board and its management team, it has become evident that no solution is available to the company, at this time, to address the current over-leveraged and significantly capital constrained position," AAP quotes chairman Peter Schuyt and managing director Luke Bunt as saying in a statement. "With no likely solution available, the board believes that the constraints currently experienced by the business are too great and the only appropriate action to best protect the interests of stakeholders is to appoint administrators." AAP notes that Pumpkin Patch, in its full-year results published last month, told investors its directors had given an undertaking to the bank that it would put forward proposals by October 20, which was later pushed out to October 31. The capital constraints were highlighted in the accounts as a "material risk" to the ongoing viability of the business. Pumpkin Patch's debt to ANZ Bank rose to NZ$46 million from NZ$39.1 million in the year to the end of July 2016, AAP discloses. It posted a loss of NZ$15.5 million in the same period. AAP relates that the retailer's board on Oct. 26 said it was committed to working with the administrators and receivers to get "the best possible outcome for the company and staff". The shares have been in a trading halt since October 21, and last traded at 6 cents, valuing the retailer at NZ$10.1 million, adds AAP. About Pumpkin Patch Based in New Zealand, Pumpkin Patch Limited (NZE:PPL) -- http://www.pumpkinpatch.biz/-- is a designer, marketer, retailer and wholesaler of children's clothing. The Company's product range encompasses all stages of a child's growth, from baby to toddler, primary school kid to pre and early teen, including clothing, nightwear, accessories, rainwear, footwear and teddy collection. Pumpkin Patch also caters for mums-to-be with a maternity collection. The Company also has a fashion mini-brand for discerning pre and early-teen girls, Urban Angel Girls. The Company's collections are available in numerous countries and regions, including New Zealand, Australia, the United Kingdom, the United States, South Africa and the Middle East. Pumpkin Patch predominantly sells through its own store network in New Zealand, Australia, the United Kingdom and the United States. The Company's subsidiaries include Torquay Enterprises Limited, Pumpkin Patch Originals Limited, Pumpkin Patch LLC, Pumpkin Patch Direct Limited, Patch Kids Limited and Urban Angel Girls Limited. PUMPKIN PATCH: Receivers Say Store Closures Likely -------------------------------------------------- Stuff.co.nz reports that the receiver of Pumpkin Patch wants to move quickly on a possible sale of the "well-known brand" but admits it will not be easy. According to the report, KordaMentha receiver Brendon Gibson said all Pumpkin Patch stores in New Zealand and Australia would remain open during the receivership. But some are likely to close within weeks, although a number of parties had already expressed an interest in buying the business, the report relates. "Sadly, this will result in some job losses and we will be communicating directly with the staff concerned as soon as possible," the report quotes Mr. Gibson as saying. Stuff.co.nz relates that Mr. Gibson said rules for listed companies had prevented receivers from being able to inform staff about the "particularly distressing" news before going public. The receivers said they would "optimally" sell the business but it was early days. "Our hope is that new owners can be found to build on Pumpkin Patch's heritage as an iconic brand in New Zealand and Australia," the report quotes Mr. Gibson as saying. "I'm not saying it will be an easy process." Mr. Gibson said unused gift vouchers would be honoured on a dollar-for-dollar basis, which meant a NZ$40 purchase could be paid with a NZ$20 gift voucher and NZ$20 cash, relays Stuff.co.nz. Pumpkin Patch has about 600 employees across 43 stores in New Zealand, and 1,000 staff in 117 stores in Australia, the report discloses. About Pumpkin Patch Based in New Zealand, Pumpkin Patch Limited (NZE:PPL) -- http://www.pumpkinpatch.biz/-- is a designer, marketer, retailer and wholesaler of children's clothing. The Company's product range encompasses all stages of a child's growth, from baby to toddler, primary school kid to pre and early teen, including clothing, nightwear, accessories, rainwear, footwear and teddy collection. Pumpkin Patch also caters for mums-to-be with a maternity collection. The Company also has a fashion mini-brand for discerning pre and early-teen girls, Urban Angel Girls. The Company's collections are available in numerous countries and regions, including New Zealand, Australia, the United Kingdom, the United States, South Africa and the Middle East. Pumpkin Patch predominantly sells through its own store network in New Zealand, Australia, the United Kingdom and the United States. The Company's subsidiaries include Torquay Enterprises Limited, Pumpkin Patch Originals Limited, Pumpkin Patch LLC, Pumpkin Patch Direct Limited, Patch Kids Limited and Urban Angel Girls Limited. ================= S I N G A P O R E ================= EZRA HOLDINGS: May Relook Investments in Insolvent Perisai ---------------------------------------------------------- Tanu Pandey at Deal Street Asia reports that Ezra Holdings may need to consider its investments in Malaysia's Perisai Petroleum Teknologi after the latter declared itself insolvent amid a default on $89.6 million (SGD125 million) bond, a situation it has said were due to headwinds in the oil and gas sector. Deal Street Asia relates that in an announcement at the Singapore stock exchange, Ezra said that it "is monitoring the situation and assessing the impact on the group" and further announcements will be made in due course as and when appropriate. Ezra, which is heavily leveraged at the moment, is Bursa Malaysia-listed Perisai's largest shareholder with a 20.6% stake through Emas Offshore Ltd and another unit that includes a joint venture, according to the report. "The offshore oil & gas industry has remained uncertain and volatile and as the market remains depressed in 2016, the Group continues to see challenging times as the demand for the Group's offshore assets and services continue to remain low," Ezra had said in an announcement at the stock exchange, the report relays. According to Deal Street Asia, the announcement from Ezra follows the recent news when the Malaysian upstream oil and gas service provider Perisai declared itself insolvent following the default on the principal and interest of the $89.6 million (SGD125 million) bond issued by its subsidiary company Perisai Capital (L) Inc. Perisai had failed when it had made a proposal to its Singapore bondholders to delay the maturity of the notes and defaulted on the October payment for the bonds which were due earlier in the month and February next year. As a result, the company triggered the Practice Note 17 (PN17) criteria of Bursa Malaysia, the report states. In a filing at the Singapore stock exchange, Ezra said, Perisai "and its subsidiaries are currently operating under adverse financial conditions. With the current market downturn, the Group's business has been negatively affected by market conditions in the oil & gas sector, including weak crude oil prices and slow economic growth". In a set of proposals, Ezra has asked to waive various financial obligations, Deal Street Asia says. "The company and its subsidiaries have and are likely to continue to face strong headwinds in the foreseeable future. As part of the group's policy, the group will reassess the value of its assets as at Aug. 31, 2016, and if necessary, impair or write them down as appropriate," it said in a filing with the Singapore stock exchange, relays Deal Street Asia. Singapore-based Ezra Holdings Limited, an investment holding company, provides integrated offshore solutions for the oil and gas industry. The company operates in three divisions: Subsea Services, Offshore Support and Production Services, and Marine Services. ==================== S O U T H K O R E A ==================== * SOUTH KOREA: IMF Estimates Corp. Restructuring Cost at KRW31TT ---------------------------------------------------------------- Yonhap News Agency reports that the International Monetary Fund (IMF) put the estimated cost of South Korea's ongoing corporate restructuring drive at KRW31 trillion (US$27 billion), saying it will be offset by various benefits in a decade, according to a recent report. It used loss given default (LGD) data for corporate debts and employment impact assumptions under a scenario that corporate restructuring in Asia's fourth-largest economy will proceed in the most effective manner, according to Yonhap. "Our method gives that cost at about KRW31 trillion in the adjusted baseline," it said in the report on the benefits and costs of the county's corporate restructuring, Yonhap relays. Yonhap notes that South Korea is currently engaged in full- fledged restructure of its shipbuilding and shipping industries amid mounting debts attributable to fierce industrywide competition. "Benchmark results for Korea suggest 5.5-7.5%of GDP creditor losses and a 0.4-0.9% of the labor force employment impact from the debt restructuring," the IMF, as cited by Yonhap, said. Yonhap says the benchmark scenario covered actual 2014 earnings and a 10% decline in corporate earnings as a confidence range. But the IMF predicted that it will lead to such mid- to long-term benefits as higher corporate investment and hiring under any presumed scenario, according to Yonhap. "The accumulated benefits of corporate restructuring will offset the one-time costs in about 10 years," it said. "The key qualitative insight is that corporate debt restructurings 'pay off' in the medium-term." It added the employment impact of the restructuring in shipbuilding only will likely be around 10,000 people, reports Yonhap. =========== T A I W A N =========== HTC CORP: Posts NT$1.8BB Net Loss in Quarter Ended Sept. ------------------------------------------------------- Nikkei Asian Review reports that embattled Taiwanese smartphone maker HTC Corp. on Oct. 25 posted a sixth consecutive quarterly loss despite a boost it received from making Google Pixel handsets and its venture into the nascent virtual reality business. For the July-September period, HTC lost NT$1.8 billion ($57 million), compared with a NT$4.5 billion loss a year ago. The improvement in the bottom line was attributed to the aggressive cut in operational expense to NT$5.6 billion from NT$8.8 billion in the year-ago period, Nikkei discloses. The company's revenue increased 3.7% to NT$22.2 billion from a year ago in the same period. According to Nikkei, HTC's push into the virtual reality business has not yet yielded substantial revenue. It started shipping Vive virtual reality gear in April at a price tag of $799 apiece. Nikkei says Chang Chia-lin, HTC smartphone and connected devices president, disclosed for the first time that his company had sold far more than the 140,000 Vive headsets reported on Chinese VR specialist website 87870.com. Chang added that the company's smartphone business nearly broke even in the third quarter without going into detail about the numbers, Nikkei relates. HTC is expected to sell around 350,000 Vive VR headgears and 17 million smartphones for all of 2016, according to Jeff Pu, an analyst at Yuanta Investment Consulting, relays Nikkei. The projection included 1.5 million Google Pixel phone exports. Nikkei relates that Pu said the Vive gear could neither save HTC nor turn the company around anytime soon as it was still only limited to first-wave adopters. Nikkei meanwhile reports that although the market react positively to HTC's role in manufacturing Google's new Pixel phones, analysts are pessimistic about the margins. "We think the profit margin is extremely low for HTC to manufacture phones for Google," the report quotes Avril Wu, an analyst at TrendForce, as saying. "Not to mention Google is expected to ship less than 2 million handsets this year -- it actually makes no difference in the global smartphone competitive landscape." Nikkei adds that Wu also said it was unlikely that HTC could capitalize on Samsung Electronics' current crisis. The South Korean tech giant killed off its much-awaited Galaxy Note 7 after the model continually caught fire. Taiwan-based HTC Corporation is a consumer electronics company. ********* 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 ***