/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/161207.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, December 7, 2016, Vol. 19, No. 242 Headlines A U S T R A L I A DAVID MCELWAINE: First Creditors' Meeting Set for Dec. 14 FORSTER PALMS: First Creditors' Meeting Set for Dec. 13 TARRENELLI PTY: First Creditors' Meeting Set for Dec. 13 C H I N A TONGJI HEALTHCARE: Incurs $103K Net Loss in Third Quarter H O N G K O N G CHINA FISHERY: Has Until January 6 to File Plan of Reorganization I N D I A A.S. REDDY: ICRA Suspends B- Rating on INR6cr Cash Loan ASHOK HANDLOOM: ICRA Reaffirms 'B' Rating on INR5.6cr LT Loan AKANKSHA POULTRY: CRISIL Reaffirms 'B' Rating on INR50MM Loan AKASVA INFRASTRUCTURE: ICRA Assigns D Rating to INR50.5cr Loan AMBADAS GINNING: CRISIL Assigns 'B' Rating to INR120MM Cash Loan ANAMIKA DEVELOPERS: ICRA Suspends B+ Rating on INR6cr Term Loan ARVIND EXPORTS: ICRA Reaffirms B+ Rating on INR12cr LT Loan ASR MET: ICRA Suspends B+/A4 Rating on INR55cr Bank Loan AVNI ENERGY: ICRA Lowers Rating on INR7cr Loan to 'D' BALDEV METALS: ICRA Suspends B+ Rating on INR10cr Bank Loan BEACON GREEN: ICRA Suspends 'B' Rating on INR10cr Bank Loan BEJAN SINGH: ICRA Suspends 'B' Rating on INR12.5cr Bank Loan BSCPL AURANG: Ind-Ra Places 'IND B+' Bank Loan Rating on RWN CHAND AGRO: ICRA Suspends B- Rating on INR12.75cr Bank Loan CITY INN: ICRA Suspends B+ Rating on INR21cr Bank Loan CITY TILES: ICRA Lowers Rating on INR35cr Cash Loan to 'D' DNR AUTO ENGINEERING: CRISIL Suspends 'B' Rating on INR42.5MM Loan EDUCOMP SOLUTIONS: Ind-Ra Withdraws 'IND D' LT Issuer Rating EASTERNZONE INDUSTRIES: CRISIL Reaffirms B+ Cash Credit Rating GAMA INFRAPROP: CRISIL Lowers Rating on INR5.64BB Loan to 'D' GEM FORGINGS: CRISIL Assigns 'B' Rating to INR18.5MM Cash Loan GIAN JYOTI: CRISIL Reaffirms B- Rating on INR175MM Term Loan GVNS TOLLWAY: Ind-Ra Places 'IND BB' Project Bank Loans on RWN GVR AJMER: Ind-Ra Puts 'IND BB' Bank Loan Rating on RWN GVR NAGAUR: Ind-Ra Places 'IND BB' Bank Loan Rating on RWN HKR ROADWAYS: Ind-Ra Places 'IND B' Bank Loan on RWN INDCON PROJECTS: CRISIL Lowers Rating on INR60MM Cash Loan to B+ INDORE DEWAS: Ind-Ra Puts 'IND B' Bank Facilities' Rating on RWN JALANDHAR AMRITSAR: Ind-Ra Puts IND B- Bank Loans Rating on RWN JINDAL-PRL: Ind-Ra Assigns 'IND B+' Long Term Issuer Rating JINDAL INFRASTRUCTURE: Ind-Ra Assigns 'IND B+' LT Issuer Rating JUMAX FOAM: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating KHALATKAR CONSTRUCTION: Ind-Ra Assigns 'IND BB' LT Issuer Rating KLR INDUSTRIES: ICRA Lowers Rating on INR28.5cr Loan to 'D' KRR DRUGS: CRISIL Assigns B+ Rating to INR35MM Cash Loan M B RUBBER: CRISIL Reaffirms B+ Rating on INR100MM Cash Loan MEGADIMENSION INFRA: CRISIL Suspends B+ Rating on INR80MM Loan MITTAL FILES: CRISIL Suspends B+ Rating on INR42.6MM Term Loan NALANDA MANAGEMENT: CRISIL Suspends 'D' Rating on INR79MM Loan PRATEEK ALLOYS: Ind-Ra Affirms 'IND B+' Long Term Issuer Rating POLYMER COATINGS: CRISIL Suspends B+ Rating on INR40MM Cash Loan PRE UNIQUE: Ind-Ra Assigns 'IND B-' Long Term Issuer Rating Q NINETH: CRISIL Reaffirms B+ Rating on INR110MM Cash Loan R.Y. EXTRUSION: ICRA Suspends B- Rating on INR6cr Bank Loan RADHESHYAM COTTEX: ICRA Reaffirms B+ Rating on INR9.5cr Loan RAJARAM MILLS: CRISIL Suspends 'B' Rating on INR50MM Cash Loan RAMKAMAL CHEMICALS: CRISIL Assigns 'B' Rating to INR70MM Loan RATHOD INDUSTRIES: ICRA Suspends B+ Rating on INR5.27cr Loan SCC PROJECTS: ICRA Suspends 'B' Rating on INR14cr Bank Loan SADAN REALTECH: CRISIL Reaffirms 'B' Rating on INR202.8MM Loan SHAHI SHIPPING: CRISIL Reaffirms 'C' Rating on INR50MM Cash Loan SHAPE ENGINEERING: Ind-Ra Assigns 'IND B' Long Term Issuer Rating SHIVA TRADING: ICRA Suspends B+ Rating on INR9.5cr Bank Loan SHIVCHAND RAI: CRISIL Assigns B+ Rating to INR55.8MM Cash Loan SHRI GANGA: CRISIL Reaffirms 'B' Rating on INR40MM Term Loan SILVER SIGN: CRISIL Reaffirms 'B' Rating on INR30MM LT Loan SONALI ENERGEES: ICRA Suspends B+/A4 Rating on INR24.77cr Loan SREE VISHNUPRIYA: ICRA Suspends B+ Rating on INR6cr Loan SRIRANI SATI: CRISIL Lowers Rating on INR80MM Cash Loan to 'B' SUMA FOODS: CRISIL Assigns B+ Rating to INR80MM Cash Loan SURENDRA STEELS: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating TACON INFRASTRUCTURE: CRISIL Ups Rating on INR58.9MM Loan to B+ UB ENGINEERING: ICRA Suspends 'D' Rating on INR770cr Loan UTTARAKHAND UTHAN: Ind-Ra Withdraws 'IND BB' Long Term Loans VIJAY V.: CRISIL Reaffirms B+ Rating on INR40MM Cash Loan VSK LABORATORIES: ICRA Suspends 'B' Rating on INR17cr Loan YOGESH CHAUDHRY: Ind-Ra Assigns 'IND BB-' Long Term Issuer Rating J A P A N JINHEUNG SAVINGS: Bids for OP Bancorp Shares Due Dec. 9 M A L A Y S I A EKA NOODLES: Net Loss Widens to MYR5.9MM in 3Q Ended Sept. 30 S I N G A P O R E F J BENJAMIN: Placed on SGX Watch List After 3 Years of Losses S O U T H K O R E A * Korea Financial Watchdog Picks 176 Firms for Restructuring - - - - - ================= A U S T R A L I A ================= DAVID MCELWAINE: First Creditors' Meeting Set for Dec. 14 --------------------------------------------------------- A first meeting of the creditors in the proceedings of David McElwaine Pty Ltd, trading as Gentlemens Outfitters, will be held at the offices of Shaw Gidley, Level 6, 384 Hunter Street, in Newcastle, NSW, on Dec. 14, 2016, at 10:00 a.m. Paul William Gidley and Jeffrey Allan Shute of Shaw Gidley were appointed as administrators of David McElwaine on Dec. 5, 2016. FORSTER PALMS: First Creditors' Meeting Set for Dec. 13 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Forster Palms Security Pty Ltd will be held at the offices of PKF, Level 8, 1 O'Connell Street, in Sydney, on Dec. 13, 2016, at 11:00 a.m. Simon Thorn and Bradley Tonks of PKF were appointed as administrators of Forster Palms on Dec. 1, 2016. TARRENELLI PTY: First Creditors' Meeting Set for Dec. 13 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Tarrenelli Pty Ltd, trading as Allpower Electrical, will be held at the offices of Chifley Advisory, Suite 3.04, Level 3, 39 Martin Place, in Sydney, NSW, on Dec. 13, 2016, at 12:30 p.m. (AEDT)/11:00 a.m. (ACST). Gavin Moss and Trent McMillen of Chifley Advisory were appointed as administrators of Tarrenelli Pty on Dec. 1, 2016. ========= C H I N A ========= TONGJI HEALTHCARE: Incurs $103K Net Loss in Third Quarter --------------------------------------------------------- Tongji Healthcare Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $103,240 on $429,416 of total operating revenue for the three months ended Sept. 30, 2016, compared to a net loss of $101,520 on $566,374 of total operating revenue for the three months ended Sept. 30, 2015. For the nine months ended Sept. 30, 2016, the Company reported a net loss of $256,017 on $1.49 million of total operating revenue compared to a net loss of $259,598 on $1.76 million of total operating revenue for the nine months ended Sept. 30, 2015. As of Sept. 30, 2016, Tonji Healthcare had $16.44 million in total assets, $19.48 million in total liabilities and a total stockholders' deficit of $3.04 million. "We generally finance our operations through our operating profits and borrowings from related parties. As of the date of this report, we have not experienced any difficulty in raising funds from related parties, and we have not experienced any liquidity problems in settling our payables in our ordinary course of business. We believe that we have adequate funds and capital with respect to conducting its business over the next twelve months. "[T]he Company has negative working capital of $18,956,952, an accumulated deficit of $3,821,579, and a stockholders' deficit of $3,043,668 as of September 30, 2016. The Company's ability to continue as a going concern ultimately is dependent on the management's ability to obtain equity or debt financing, attain further operating efficiencies, and achieve profitable operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern. "Management has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included: 1) plan to convert existing related party loans into equity, 2) plan to complete construction of the new hospital and start generating revenue by 2017, 3) plan to increase sales revenue with additional medical equipment, 4) plan to obtain more funding from related party entity that is controlled by the CEO to complete the construction of the new hospital. No assurances can be given that the steps taken will provide necessary capital for the Company to continue its operations," the Company stated in the quarterly report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/LJz93m About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., a Nevada corporation, operates Nanning Tongji Hospital, a general hospital with 105 licensed beds. Tongji reported a net loss of $589,000 on $2.37 million of total operating revenue for the year ended Dec. 31, 2015, compared to a net loss of $462,000 on $2.52 million of total operating revenue for the year ended Dec. 31, 2014. Anton & Chia, LLP, in Newport Beach, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015. ================ H O N G K O N G ================ CHINA FISHERY: Has Until January 6 to File Plan of Reorganization ----------------------------------------------------------------- Judge James L. Garrity, Jr. of the U.S. Bankruptcy Court for the Southern District of New York extended the exclusive periods within which only China Fishery Group Limited (Cayman) and all of its Moving Debtor-affiliates may file a Plan of Reorganization, through and including January 6, 2017, and solicit acceptances of such plan, through and including March 9, 2017. However, Judge Garrity denied exclusivity extension for CFG Peru Investments Pte. Limited (Singapore) since exclusivity was terminated upon the appointment of a chapter 11 trustee in accordance with Decision entered on October 28, 2016. The Court noted that Malayan Banking Berhad, Hong Kong Branch, Cooperatieve Rabobank U.A. Standard Chartered Bank (Hong Kong) Limited and DBS Bank (Hong Kong) Limited, Bank of America, N.A., and the Ad Hoc Committee of Holders of CFG Investment S.A.C's 9.75% Senior Notes Due 2019 had filed objections to the Motion. Pursuant to the record of the hearing held on October 25, 2016, the Debtors were directed to provide the Objectors, China CITIC Bank International Limited and Taipei Fubon Commercial Bank Co., Ltd. with the final non-draft version of a forensic report, prepared for the independent review committees of Debtors Pacific Andes International Holdings Limited and Pacific Andes Resources Development Limited by RSM Corporate Advisory, promptly upon its completion. The Debtors were required to provide China CITIC Bank and Taipei Fubon Commercial Bank with a copy of the audited financial statements of the Pacific Andes Group for the fiscal year ended September 2015 promptly upon Deloitte LLP's public issuance of same, as well as a term sheet for a proposed chapter 11 plan of reorganization and a related business plan for the Debtors on or before December 16, 2016. The Troubled Company Reporter had reported earlier that the Debtors asked the Court to extend their exclusive periods for filing a chapter 11 plan and soliciting acceptances to the plan, through March 30, 2017 and May 31, 2017, respectively. The Debtors related that certain of their creditors, known as Adverse Lenders, filed a Motion for the appointment of a Chapter 11 Trustee, and since the Trustee Motion, they have turned their attention to formulating potential plan structures, including meeting with creditors to ascertain their views, as well as dealing with various motions, several relating to the Debtors' ability to formulate, negotiate and confirm a plan. About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 16-11895) on June 30, 2016. The petition was signed by Ng Puay Yee, chief executive officer. At the time of the filing, the Debtor estimated its assets at $500 million to $1 billion and debts at $10 million to $50 million. The case is assigned to Judge James L. Garrity Jr. Howard B. Kleinberg, Esq., Edward J. LoBello, Esq. and Jil Mazer-Marino, Esq. of Meyer, Suozzi, English & Klein, P.C. serve as legal counsel. The Debtor has tapped Goldin Associates, LLC, as financial advisor and RSR Consulting LLC as restructuring consultant. The Court approved the appointment of William J. Brandt, Jr., as the Chapter 11 Trustee for CFG Peru Investments Pte. Limited (Singapore), an affiliate of China Fishery Group Limited (Cayman). ========= I N D I A ========= A.S. REDDY: ICRA Suspends B- Rating on INR6cr Cash Loan ------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B- assigned to the INR6.00 crore cash credit limits of A.S. Reddy Infratech Private Limited. ICRA has also suspended the long term/short term rating of [ICRA]B-/[ICRA]A4 assigned to the INR4.00 crore unallocated limits of ASRIPL. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. A.S. Reddy Infratech Private limited is a Hyderabad based infrastructure and engineering construction company involved in the execution of civil construction works. In past company has executed projects from civil construction department of Andhra Pradesh and the government of Uttar Pradesh. ASHOK HANDLOOM: ICRA Reaffirms 'B' Rating on INR5.6cr LT Loan ------------------------------------------------------------- ICRA has reaffirmed its long-term rating of [ICRA]B on the INR5.60-crore bank limits of Ashok Handloom Factory Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Cash Credit 5.60 [ICRA]B; Reaffirmed ICRA's rating reaffirmation takes into account the marginal decline of ~5% in AHFPL's top-line in FY2016 over the previous year and the low but stable operating margins. The rating also takes into account the company's working capital intensive operations and the vulnerability of its profitability to volatility in raw material prices. Even though the promoters infused INR0.40 crore equity in the company in FY2016, its financial profile remains characterised by modest debt coverage indicators and a leveraged capital structure as evident from the gearing ratio of 7.8 times as on March 31, 2016. Nevertheless, most of the debt consists of bank borrowings and unsecured loans from promoters. ICRA also takes note of the company's modest scale of operations. The rating, however, continues to be supported by the long track record of the company's operations, and its established relationships with its customers and suppliers. ICRA notes that over the years, there has been some moderation in the company's customer concentration. The company's ability to improve its profitability, ramp up its scale of operations and attain an optimal working capital cycle will be the key rating sensitivity. AHFPL was established in 1946 as a proprietorship firm and was converted into a private limited company in 1989. The company manufactures home linen items such as bed sheets, bed linen, pillow cases, cushion cover sets, curtains, and drapes, which are marketed under the brand name Sonalika. In addition, AHFPL also manufactures powerloom printed cloth and fabric, which is directly marketed to wholesalers, trading firms etc. The operations of the company are currently managed by Mr. Ambuj Kumar, Managing Director, in collaboration with other directors/family members. The company derives the bulk of its revenues from the sale of powerloom printed fabric and grey cloth. Recent Results The company reported an OI of INR24.47 crore and a net profit of INR0.02 crore in FY2016, as against an OI of INR25.79 crore and a net profit of INR0.01 crore in the previous year. AKANKSHA POULTRY: CRISIL Reaffirms 'B' Rating on INR50MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Akanksha Poultry Farms (APF; part of the Akanksha group) continues to reflect the Akanksha group's small scale of operations and exposure to intense competition in the poultry industry, and its average financial risk profile because of small networth. These weaknesses are partially offset by its promoters' extensive industry experience and its semi-integrated operations. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 50 CRISIL B/Stable (Reaffirmed) For arriving at the rating, CRISIL has combined the business and financial risk profile of APF and Akanksha Feed Manufacturing Co. The firms, together referred to as the Akanksha group, are managed by Mr. Anil Shirsath and have significant business and financial linkages. Outlook: Stable CRISIL believes the Akanksha group will benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if revenue and operating profitability increase significantly, leading to a better financial risk profile, especially liquidity. The outlook may be revised to 'Negative' if revenue is stagnant, or operating profitability declines, or if the group undertakes large, debt-funded capital expenditure, weakening its financial risk profile. APF, established in 2010 by Mr. Anil Shirsath, produces broiler chicken on a contract manufacturing basis. AFMC, a proprietary concern of Mr. Shirsath's wife, Ms. Savita Anil Shirsath, was formed in 2011 for manufacturing poultry feed, and meets around 80% of APF's feed requirements. AKASVA INFRASTRUCTURE: ICRA Assigns D Rating to INR50.5cr Loan -------------------------------------------------------------- ICRA has assigned its long-term rating of [ICRA]D to the INR98.00- crore1 fund-based and non-fund based bank facilities of Akasva Infrastructure Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash Credit 50.50 [ICRA]D; assigned Non-fund based- Bank guarantee/ Letter of Credit 47.50 [ICRA]D; assigned ICRA's rating factors in the delay in debt-servicing by AIPL because of its high receivable days from public sector entities and consequently the stretched liquidity position. This has rendered the company dependent on promoter's contribution to manage cash flows, given that the bank limits are always fully utilised. Moreover, given the challenges in funding and the weak order inflow, the company's revenue has been declining over the last few years. ICRA, however, takes note of the company's execution track record, its moderate capital structure and the extensive experience of the promoters in the construction sector. Going forward, the ability of the company to service its debt timely and consistently will be the key rating sensitivity. This in turn will hinge on the company's ability to get fresh orders and execute the same in a timely manner, along with an improvement in its working capital cycle; in absence of which, timely infusion of funds from the promoters will be critical. Incorporated in January 2007, Akasva Infrastructure Pvt Ltd is promoted by a first generation entrepreneur Mr. Viren Jain. The company undertakes civil construction for industrial spaces, housing, hydro power and thermal power projects. The completed projects consist of building and other industrial construction projects. The future work-orders exhibit projects from diverse sectors including civil construction for power projects and railways. Recent Results AFPL reported a net profit of INR1.29 crore on an operating income (OI) of INR128.65 crore in FY2016, as compared to a net profit of INR2.09 crore on an OI of INR127.32 crore in the previous year. AMBADAS GINNING: CRISIL Assigns 'B' Rating to INR120MM Cash Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Ambadas Ginning & Pressing Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Cash Credit Limit 120 CRISIL B/Stable Proposed Long Term Bank Loan Facility 40 CRISIL B/Stable The rating reflects exposure to risks related to implementation of its ongoing project and to stabilisation of operations after commencement. The rating also factors in susceptibility to volatility in cotton prices and to intense competition. These weaknesses are partially offset by the extensive experience of promoters in the cotton ginning industry, leading to established relationships with customers and suppliers, and the advantageous location of its plant. Outlook: Stable CRISIL believes AGPPL will continue to benefit over the medium term from its promoters' extensive experience. The outlook may be revised to 'Positive' if early stabilisation of operations leads to sizeable cash accrual. Conversely, the outlook may be revised to 'Negative' if cash accrual is very low, or if the financial risk profile weakens, most likely because of a stretch in its working capital cycle, or large, debt-funded capital expenditure, or disruption in its operations due to any regulatory change. AGPPL is a Beed (Maharashtra)-based company which was incorporated in 2016. The company is promoted by Mr. Satindar Ashruba Maind, Mr. Sunil Limbaji Gayke, Mr. Ramchandra Ambadas Nirmal, and Mr. Dilip Tukaram Solanke who have over a decade of experience in the cotton ginning and pressing industry. ANAMIKA DEVELOPERS: ICRA Suspends B+ Rating on INR6cr Term Loan --------------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR6.00 crore term loan facility of Anamika Developers. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. ARVIND EXPORTS: ICRA Reaffirms B+ Rating on INR12cr LT Loan ----------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ to the INR12.00 crore (enhanced from 10.00) cash credit facility of Arvind Exports Solvent Oil Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund Based-Cash Credit 12.00 [ICRA]B+; reaffirmed The rating is constrained by AESOI's modest scale of operations, characterised by de-growth in operating income by 29.4% in FY2016 to INR38.2 crore from INR54.2 crore in FY2015. The rating takes into account the modest financial profile of the firm, as reflected by low profitability and weak debt coverage indicators. The capital structure of the firm remained stretched, as reflected by increased gearing of 2.6 times as on March 31, 2016 over 2.2 times as on March 31, 2015. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers, and vulnerability of the firm's profitability to raw material (groundnut) prices, which are subject to seasonality, crop harvest and regulatory risks. The re-affirmation of rating takes into account the longstanding experience of the partners in the groundnut industry. The rating also considers the locational advantage from the proximity of AESOI's manufacturing facility to raw material sources, giving it easy access to groundnuts. AESOI's ability to increase its scale, maintain adequate profitability and improve its capital structure, given the seasonality in the business, volatility in prices of groundnut, high competition and proper management of working capital requirements, will remain critical to the credit metrics. AESOI is a partnership concern and any substantial withdrawal from the capital account in future could adversely impact its credit profile. Established in 2005, Arvind Exports Solvent Oil Industries (AESOI) is a partnership firm that crushes groundnut seeds to produce groundnut cake and groundnut oil. The firm also undertakes solvent extraction of groundnut cake to produce groundnut de-oiled cake and groundnut oil, and further refines groundnut oil as well. The manufacturing facility, located at Dhoraji, Gujarat, is equipped with 10 expellers with a total crushing capacity of 60 metric tonnes per day of groundnut seeds. The solvent extraction plant has a capacity of extracting 140 metric tonnes per day of groundnut cake, and the refinery unit has a processing capacity of 24 metric tonnes per day of groundnut oil. AESOI is actively managed by Mr. Bharat Dobariya, Mr.Jagdish Dobaria and Mr. Sanjay Dobaria. Recent Results During FY2016, AESOI reported an operating income of INR38.2 crore and profit after tax of INR0.2 crore. ASR MET: ICRA Suspends B+/A4 Rating on INR55cr Bank Loan -------------------------------------------------------- ICRA has suspended the [ICRA]B+/A4 ratings assigned to the INR55.00 crore bank facilities of ASR Met Tech Private Limited. The suspension follows ICRAs inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy; ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise." Incorporated in January 2013, ASR Met Tech Private Limited is setting up a green field project for manufacturing of Stainless Steel pipes and tubes having production capacity of 10,200 MTPA at Ahmedabad, Gujarat. The product portfolio would include pipes having outer diameter (OD) ranging from 6 mm to 114 mm and thickness of 0.5 mm to 6 mm. The commercial production of Seamless pipe and tubes is expected to start from April 2016 onwards. AMTPL is promoted by Aggarwal group which has strong presence in the steel industry through its various companies such as ASR Multimetals Private Limited engaged in manufacturing of Sponge Iron, TMT bars, Structural steel products etc. Apart from the steel industry, the group is also involved in importing and trading of various agro products. The group also has an established dealer's network in the domestic as well as international markets. AVNI ENERGY: ICRA Lowers Rating on INR7cr Loan to 'D' ----------------------------------------------------- ICRA has revised the long-term rating assigned to the INR7.00 crore fund-based limits and INR1.75 crore unallocated limit of Avni Energy Solutions Private Limited from [ICRA]B+ to [ICRA]D. ICRA has also revised the short term rating assigned to the INR0.50 crore fund-based and INR1.00 crore non-fund based limits of AESPL from [ICRA]A4 (pronounced ICRA A four) to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- LT-Cash Credit 7.00 [ICRA]D/Revised from [ICRA]B+ LT-Unallocated Limit 1.75 [ICRA]D/Revised from [ICRA]B+ ST-Fund Based 0.50 [ICRA]D/Revised from [ICRA]A4 ST-Non Fund Based 1.00 [ICRA]D/Revised from [ICRA]A4 The ratings downgrade is on account of delays in the debt servicing by the company due to its stretched liquidity position. AESPL is incorporated in 2009 and is engaged in providing LED based lighting solutions for street lighting, rural lighting and home/ office lighting requirements. It is promoted by Mr. Brij Mohan Rathi and Mr. Gururaj Ganesh. Its manufacturing facility is located in Bangalore. Its customers include CREDA (Chattisgarh State Renewable Energy Development Agency), EESL (Energy Efficiency Service Limited), Havells India Limited etc. Recent Results As per unaudited provisional numbers, AESPL reported a net profit of INR0.70 crore on an operating income of INR31.44 crore during FY 2016 as against a net profit of INR0.01 crore on an operating income of INR33.53 crore during FY2015. BALDEV METALS: ICRA Suspends B+ Rating on INR10cr Bank Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating for the INR10 Crore bank facilities of Baldev Metals Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. BEACON GREEN: ICRA Suspends 'B' Rating on INR10cr Bank Loan ----------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B outstanding on the INR10.00 crore bank facilities of Beacon Green Tech Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. BEJAN SINGH: ICRA Suspends 'B' Rating on INR12.5cr Bank Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B outstanding on the INR12.50 crore bank facilities of Bejan Singh Eye Hospital Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. BSCPL AURANG: Ind-Ra Places 'IND B+' Bank Loan Rating on RWN ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has placed BSCPL Aurang Tollway Limited's (BATL) INR8,560 million senior project bank loan rating of 'IND B+' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was a fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1,000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the National Highways Authority of India NHAI ('IND AAA'/Stable), Ind- Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and awaited. The unprecedented toll suspension elevates the dependence of the project on the sponsors, given the absence of a debt service reserve account. Ind-Ra will resolve the RWN as and when the information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt servicing, will result in a rating downgrade. CHAND AGRO: ICRA Suspends B- Rating on INR12.75cr Bank Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B- rating for the INR12.75 crore bank facilities of Chand Agro Private Limited. The suspension follows lack of co-operation from the company. CITY INN: ICRA Suspends B+ Rating on INR21cr Bank Loan ------------------------------------------------------ ICRA has suspended the long term rating of [ICRA] B+ assigned to the INR21.0 crore fund based facilities of City Inn Private Limited. The suspension follows ICRA's inability to carry out rating surveillance in the absence of requisite information from the company. CITY TILES: ICRA Lowers Rating on INR35cr Cash Loan to 'D' ---------------------------------------------------------- ICRA has revised the long term rating assigned to the INR35.00 crore cash credit limits, INR22.52 crore term loans and INR12.48 crore unallocated limits of City Tiles Limited to [ICRA]D from [ICRA]BB+ (Stable). ICRA has also revised the short term rating assigned to the INR14.00 crore non-fund based facilities of CTL to [ICRA]D from [ICRA]A4+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Limits 35.00 Revised to [ICRA]D from [ICRA]BB+(Stable) Term Loans 22.52 Revised to [ICRA]D from [ICRA]BB+(Stable) Unallocated Limits 12.48 Revised to [ICRA]D from [ICRA]BB+(Stable) Letter of Credit/ 14.00 Revised to [ICRA]D Bank Guarantee from [ICRA]A4+ The revision in ratings takes into account the delays in meeting debt obligations on a timely manner in the recent past on account of stretched liquidity position emanated from elongated receivables and high inventory levels. City Tiles Limited was incorporated in 2002 as a manufacturer of ceramic tiles, by Mr R. D. Patel. Since then the company has extended production capacities as well as the product range. CTL is currently engaged in the business of manufacturing and outsourcing of vitrified tiles. The manufacturing facility of the company is located near Himmatnagar in Gujarat having an installed capacity of about 14,000 square meters per day of vitrified tiles. CTL markets its tiles under a single brand name "City Tiles". DNR AUTO ENGINEERING: CRISIL Suspends 'B' Rating on INR42.5MM Loan ------------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of M/s. DNR Auto Engineering Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B/Stable Term Loan 42.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by DNR with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DNR is yet to provide adequate information to enable CRISIL to assess DNR'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. DNR was setup in 2014 by Mr. Suresh Kute. The firm is engaged in manufacturing of auto components for two wheelers of Bajaj Auto Ltd. The firm has its manufacturing unit in Majalgaon (Maharashtra). EDUCOMP SOLUTIONS: Ind-Ra Withdraws 'IND D' LT Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has withdrawn Educomp Solutions Limited's (Educomp) 'IND D (suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of information. Ind-Ra will not provide ratings or analytical coverage for Educomp. Ind-Ra suspended Educomp's ratings on 4 May 2016. Educomp's ratings: -- Long-Term Issuer Rating: 'IND D (suspended)'; rating withdrawn -- INR2,640 million term loans: Long-term 'IND D (suspended)'; rating withdrawn -- INR3,270 million non-fund-based working capital banking lines: Long-term 'IND D (suspended)' /Short-term 'IND D (suspended)' ; ratings withdrawn -- INR800 million fund-based working capital banking lines: Long-term 'IND D (suspended)'/Short-term 'IND D (suspended)'; ratings withdrawn -- INR200 million long-term debt programme: 'IND C (suspended)'; ratings withdrawn EASTERNZONE INDUSTRIES: CRISIL Reaffirms B+ Cash Credit Rating -------------------------------------------------------------- CRISIL's rating on long term bank facilities of Easternzone Industries Private Limited continues to reflect the company's exposure to stabilization and offtake risk and susceptibility to adverse regulatory changes, volatility in raw material prices, and vagaries of monsoon. These weaknesses are partially offset by the promoters' extensive experience in the agro industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 37 CRISIL B+/Stable (Reaffirmed) Term Loan 62.5 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that EZIPL will benefit from the extensive experience of the promoters in the agro business and healthy prospects of the rice-processing industry over the medium term. The outlook may be revised to 'Positive' in case of timely implementation of production capacity and large revenue and profitability. Conversely, the outlook may be revised to 'Negative' in case of significant time and cost overrun in project completion, lower-than-expected capacity utilisation or significant stretch in the working capital cycle resulting in deterioration in the financial risk profile Incorporated in 2013, EZIPL has set up a 12-tonne-per-hour non- basmati rice mill unit at Cuttack (Odisha), operations of the company commenced from July 2016. EZIPL's operations are managed by its promoter-director, Mr. Surendra Nath Sahoo, Mr. Samarjeet Sahoo, Mr. Sanjay Kumar Sahoo and Mr. Subhrajeet Sahoo. GAMA INFRAPROP: CRISIL Lowers Rating on INR5.64BB Loan to 'D' ------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Gama Infraprop Private Limited to 'CRISIL D/CRISIL D' from 'CRISIL BB- /Negative/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 180 CRISIL D (Downgraded from 'CRISIL A4') Funded Interest 193.5 CRISIL D (Downgraded from Term Loan 'CRISIL BB-/Negative') Term Loan 5,649.0 CRISIL D (Downgraded from 'CRISIL BB-/Negative') The rating downgrade reflects instances of delay by GIPL in servicing its instalment on term loan and interest. The delays have been caused on account of company's weak liquidity on account of delays in commissioning of the power-plant due to non- availability of gas. The company's commercial production started from March 2016. GIPL has limited track record of operations, vulnerability of business risk profile to timely and adequate procurement of gas and weak financial risk profile marked by high gearing. However, the company benefits from the completion of the power plant and the healthy demand for electricity. GIPL is a special purpose vehicle floated by the RL Goyal group (RLG group) to develop a 225-megawatt power plant, using the combine cycle gas technology, near Kashipur, Uttarakhand. The company was incorporated in May 2010 with the purpose of developing and running the proposed power plant. Over the years, the RLG group has established itself in the chemicals industry by setting up a number of manufacturing units for producing chemicals, such as acetic anhydride, mono- chloroacetic acid, acetanilide, power alcohol, aniline oil, and nitro benzene. Luna Chemical Industries Pvt Ltd (rated 'CRISIL BB/Stable/CRISIL A4+'), GD Dyestuff Industries Ltd ('CRISIL BB/Stable/CRISIL A4+'), and Jay Jee Enterprises ('CRISIL BB/Stable/CRISIL A4+') are also part of the RLG group. The group's operations are managed by Mr. R L Goyal and his sons, Mr. Rahul Goyal and Mr. Raman Goyal. GEM FORGINGS: CRISIL Assigns 'B' Rating to INR18.5MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Gem Forgings Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 6.5 CRISIL B/Stable Bank Guarantee 75.0 CRISIL A4 Cash Credit 18.5 CRISIL B/Stable The ratings reflect the company's large working capital requirement and exposure to risks inherent in its tender-based operations. These weaknesses are partially offset by its promoters' extensive experience in the medical equipment, and electrical and hardware items trading industry. Outlook: Stable CRISIL believes GFPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a significant and sustained increase in revenue and profitability leading to higher cash accrual. The outlook may be revised to 'Negative' if there is a stretch in working capital cycle, or if changes in risk management policies hit the financial risk profile, particularly liquidity. GFPL, incorporated in January 1985, is promoted by Mr. Ajay Kumar Garg and his wife Ms Shashi Garg. The company is part of the Kolkata-based Gem group. It exports medical equipment and electrical and hardware items to Africa. GIAN JYOTI: CRISIL Reaffirms B- Rating on INR175MM Term Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facility of Gian Jyoti Educational Society continues to reflect the society's stretched liquidity and dependence on external funding sources to meet its debt obligation, and to risks related to occupancy at its institutes and to regulatory risks associated with educational institutions. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 175 CRISIL B-/Stable (Reaffirmed) These weaknesses are partially offset by the extensive experience of its promoter and their funding support and its established regional position in the education sector, and its diverse course offerings. Outlook: Stable CRISIL believes GJES will continue to benefit from its promoter's extensive experience in the education sector, its established regional market position, and the wide range of courses it offers. The outlook may be revised to 'Positive' if there is a sustainable increase in scale of operations, while profitability remains healthy, and if capital structure improves. The outlook may be revised to 'Negative' if the society undertakes larger-than- expected debt-funded capital expenditure, weakening its financial risk profile, or is affected adversely by any regulatory change, resulting in a significant decline in student intake or cash accrual. GJES was established in 1974 by Mr. J S Bedi. The society manages three institutes-Gian Jyoti Global School (GJGS), Gian Jyoti Institute of Management and Technology (GJIMT), and Gian Jyoti Group of Institutions (GJGOI)-in Mohali and Shambhu Kalan in Punjab. It established GJGS in 1974 in Mohali GJIMT in 1998 in Mohali; and GJGOI in 2012 in Shambhu Kalan. Mr. Bedi oversees the society's operations. GVNS TOLLWAY: Ind-Ra Places 'IND BB' Project Bank Loans on RWN -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed GVNS Tollway Private Ltd's (GTPL) INR360 million senior project bank loans of 'IND BB' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the project elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the Concession granting authority, Ind-Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and is awaited. The project could tap into the available debt service reserve account (DSRA) to meet the financial obligations. Ind-Ra will monitor the developments, namely the replenishment of DSRA, including any compensation from the concession granting authority and resolve the RWN as and when such information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt servicing, will result in a rating downgrade. GVR AJMER: Ind-Ra Puts 'IND BB' Bank Loan Rating on RWN ------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed GVR Ajmer Nagaur Tollway Private Limited's (GANTPL) INR3,187.50 million bank loan rating of 'IND BB' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the Concession granting authority, Ind-Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and is awaited. The unprecedented toll suspension elevates the dependence of the project on the sponsors, given the absence of a debt service reserve account. Ind-Ra will resolve the RWN as and when the information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt servicing, will result in a rating downgrade. GVR NAGAUR: Ind-Ra Places 'IND BB' Bank Loan Rating on RWN ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed GVR Nagaur Bikaner Tollway Private Limited's (GNBTPL) INR3,150 million bank loan rating of 'IND BB' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the Concession granting authority, Ind-Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and is awaited. The unprecedented toll suspension elevates the dependence of the project on the sponsors, given the absence of a debt service reserve account. Ind-Ra will resolve the RWN as and when the information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt servicing, will result in a rating downgrade. HKR ROADWAYS: Ind-Ra Places 'IND B' Bank Loan on RWN ---------------------------------------------------- India Ratings and Research (Ind-Ra) has placed HKR Roadways Limited's (HKRRL) INR15,250 million bank loan of 'IND B' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting November 8, 2016 till midnight of December 2, 2016. The RWN reflects the elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the Concession granting authority, Ind-Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and is awaited. The project could tap into the available debt service reserve account (DSRA) to meet the financial obligations. Ind-Ra would monitor the developments namely, the replenishment of DSRA, including any compensation from the concession granting authority and resolve the RWN as and when such information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt service, will result in a rating downgrade. INDCON PROJECTS: CRISIL Lowers Rating on INR60MM Cash Loan to B+ ---------------------------------------------------------------- CRISIL has downgraded the ratings of Indcon Projects and Equipment Limited to 'CRISIL B+/Stable/ CRISIL A4' from 'CRISIL BB/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 75 CRISIL A4 (Downgraded from 'CRISIL A4+') Bill Discounting 40 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') Cash Credit 60 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') The downgrade reflects weakened liquidity profile marked by insufficient net cash accrual to meet term debt obligations and high bank limit utilisation driven by lower than expected turnover and higher than expected debt levels due to increased working capital requirements. Financial risk profile has weakened with gearing increasing to 1.75 times due to working capital funding and term loans. Working capital requirement is sizeable as reflected in gross current assets increasing to 250 days due to higher debtor and inventory days. Improvement in turnover levels and hence accrual level will remain key rating sensitivity factors. The ratings reflect the weakened liquidity profile marked by insufficient net cash accrual to meet term debt obligations; tender-based business operations leading to volatility in sales; large working capital requirement and average financial risk profile. These weaknesses are partially offset by the extensive experience of IPEL's promoters in the engineering equipment industry, the company's diversified revenue profile, and strong and long-term relationships with customers and suppliers. Outlook: Stable CRISIL believes IPEL will continue to benefit from the extensive industry experience of its promoters and their established relationships with customers. The outlook may be revised to 'Positive' if increase in scale of operations and profitability and efficient working capital management, lead to better cash accrual and financial risk profile. The outlook may be revised to 'Negative' if low cash accrual or large working capital requirement or debt-funded capital expenditure weakens financial risk profile. Incorporated in 1986 by Mr. Prakash Narain Misra, IPEL designs and manufactures engineering equipment such as skid-mounted compressed air, gas, and liquid driers; pressure vessels; columns; and heat exchangers. It is also engaged in engineering, procurement, and construction of pipeline infrastructure for the oil and gas sector. The company is based in Delhi, and has manufacturing facilities in Faridabad (Haryana), Gujarat, and Delhi. In fiscal 2016, IPEL earned profits of INR11.92 million on net sales of INR569.3 million, against INR8.75 million and INR627.7 million for fiscal 2015. INDORE DEWAS: Ind-Ra Puts 'IND B' Bank Facilities' Rating on RWN ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed Indore Dewas Tollways Limited's (IDTL) INR4,500 million and INR1761.3 million project bank facilities' rating of 'IND B' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was a fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the National Highways Authority of India NHAI ('IND AAA'/Stable), Ind- Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and awaited. The project could tap into the available debt service reserve account (DSRA) to meet the financial obligations. Ind-Ra would monitor the developments, namely the replenishment of DSRA, including any compensation from the concession granting authority and resolve the RWN as and when such information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt service, will result in a rating downgrade. JALANDHAR AMRITSAR: Ind-Ra Puts IND B- Bank Loans Rating on RWN --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed Jalandhar Amritsar Tollways Ltd's (JATL) INR2,118.6 million bank loans of 'IND B-' on Rating Watch Negative (RWN), following the recent announcement by the Ministry of Road Transport and Highways, exempting tolling on highways starting 8 November 2016 till midnight of 2 December 2016. The RWN reflects the project's elevated stress on the liquidity and the possibility of further weakening of credit metrics due to the loss of toll collections for such an extended period. The suspension of toll was fallout of the cash shortage in the economy due to the sudden scrapping of the old high denomination INR500 and INR1000 notes. Consequently, the project is compelled to face cash flow shortfalls in meeting its expenses and debt service obligations. The temporary cash flow mismatches will exert pressure on the finances of the project. Although, the developer is expecting the foregone toll income to be reimbursed by the National Highways Authority of India (NHAI, 'IND AAA'/Stable), Ind-Ra believes the modus operandi (operational mechanics) and timelines for such compensation is unclear and awaited. The project could tap into the available debt service reserve account (DSRA) to meet the financial obligations. Ind-Ra will monitor the developments, namely, the replenishment of DSRA, including any compensation from the concession granting authority and will resolve the RWN as and when such information is made available. RATING SENSITIVITIES Negative: Extended period of liquidity strain and lack of timely sponsor support for debt service, will result in a rating downgrade. JINDAL-PRL: Ind-Ra Assigns 'IND B+' Long Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Jindal-PRL Infrastructure (Joint Venture) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The rating reflects Jindal-PRL Infrastructure (Joint Venture)'s short operating track record, as it commenced its commercial operations in April 2016. The ratings are constrained by the challenges the JV could face, considering this is the largest project handled by the JV partners and the project being under the execution stage. The project is scheduled to be completed before 15 April 2018. The ratings benefit from its partners' more than two-decades of experience in civil construction. RATING SENSITIVITIES Positive: Timely completion of the contract will be positive for the ratings. Negative: Any time or cost overrun will be negative for the ratings. COMPANY PROFILE Jindal-PRL Infrastructure (Joint Venture) was formed between Jindal Infrastructure (Lead Partner) and PRL Projects and Infrastructures Ltd. (Associate Partner) on 26 September 2015. The firm has a work order of INR1,069.47 million from Public Works Department to be executed over a period of 24 months. The scope of work is Rehabilitation and Upgradation of Ratanpur - Kota - Lormi Road. Incorporated in 2009, Jindal Infrastructure is engaged in civil construction. The firm is managed by Mr Vishnu Prasad Agrawal and Mukesh Kumar Agrawal. Incorporated in 2005, PRL Projects and Infrastructures Ltd. is a public limited company and engaged in the civil construction business. The company is promoted by Mr. Anand Garg, Mr. Vijay Garg, Mr. Manish Garg and Mr. Rahul Garg. Jindal-PRL Infrastructure (Joint Venture)'s ratings: -- Long-term Issuer rating: assigned 'IND B+'/Stable -- INR30 million fund-based working capital limits: assigned 'IND B+'/Stable -- INR90 million non- fund-based working capital limits: assigned 'IND A4' JINDAL INFRASTRUCTURE: Ind-Ra Assigns 'IND B+' LT Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Jindal Infrastructure a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect JI's low revenue base and moderate credit metrics. In FY16, revenue was INR110m (FY15: INR35m) with net financial leverage (total adjusted net debt/operating EBITDA) of 8.5x (1.3x) and EBITDA interest coverage (operating EBITDA /gross interest expenses) of 2.3x (9.2x). The liquidity profile of the firm was moderate, with the average use of the working capital limits over 71% during the 12 months ended October 2016. The ratings benefit from its partners' more than two-decades of experience in civil construction. RATING SENSITIVITIES Negative: A sustained decline in the EBITDA interest coverage will be negative for the ratings. Positive: A substantial improvement in the revenue, along with the present credit metrics would lead to a positive rating action. COMPANY PROFILE Chhattisgarh-based, Jindal Infrastructure was incorporated in 2009. The firm is engaged in civil construction. The firm is managed by Mr Vishnu Prasad Agrawal and Mr Mukesh Kumar Agrawal. JI's ratings: -- Long-term Issuer rating: assigned 'IND B+'/Stable -- INR50 million fund-based working capital limits: assigned 'IND B+'/Stable -- INR40 million non- fund-based working capital limits: assigned 'IND A4' JUMAX FOAM: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Jumax Foam Private Limited a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect JFPL's small scale of operations with revenue of INR348.16 million in FY16 (FY15: INR299.37 million). The ratings, however, are supported by JFPL's satisfactory operating margins of 9.31% in FY16 (FY15: 7.91%) and comfortable credit metrics with net leverage (Total adjusted net debt/Operating EBITDA) of 1.08x (2.40x) and interest coverage (Operating EBITDA/Gross interest expense) of 3.78x (2.54x). The ratings factor in the comfortable liquidity position of JFPL, as evident from around 60% utilisation of its fund-based limits during the 12 months ended October 2016. The ratings further factor in JFPL's directors' extensive experience of around three decades in the foam manufacturing business. RATING SENSITIVITIES Negative: A decline in operating profitability leading to deterioration in the credit metrics will lead to a negative rating action. Positive: Significant growth in the top-line while credit metrics being sustained or improved will lead to a positive rating action. COMPANY PROFILE Incorporated in 1987, JFPL manufactures polyurethane foam and memory foam products with an installed capacity of 2500MTPA in the national capital region. The company imports raw material from Singapore, Hong Kong and China and sells the final products to auto, footwear and home furnishing industries. JFPL's ratings: -- Long Term Issuer Rating: assigned 'IND BB+'/Stable -- INR50 million fund-based limit: assigned 'IND BB+'/Stable/'IND A4+' -- INR50 million non-fund-based limit: assigned 'IND A4+' KHALATKAR CONSTRUCTION: Ind-Ra Assigns 'IND BB' LT Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Khalatkar Construction (Khalatkar) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings are constrained by the moderate scale of operations, as reflected in revenue of INR462 million during FY16 (FY15: INR424 million), along with a decline in operating margin to 6.6% (7.3%). The drop in margin is attributable to a rise in sub- contract expenses. The ratings are further constrained by the small work order size of INR523 million, of which 85% of the orders are expected to be completed by FY17, and the proprietorship nature of the business. However, the ratings are supported by the proprietor's two-decade- long experience in the construction industry, and an improvement in Khalatkar's credit metrics as reflected in gross interest coverage (operating EBITDAR/gross interest expense) of 4.1x in FY16 (FY15:2.4x) and net leverage (total adjusted net debt/operating EBITDAR) of 3.3x owing to a decline in financial cost. RATING SENSITIVITIES Negative: Any further decline in operating margin leading to deterioration in credit metrics could be negative for the ratings. Positive: A substantial improvement in the order book size, coupled with the maintenance of the comfortable credit metrics could be positive for the ratings. COMPANY PROFILE Established in 1985 by Jayant Khalatkar, Khalatkar is a proprietorship firm primarily engaged in the construction business. The firm has also ventured into the toll collection business, but continues to generate a majority of its revenue from the construction business. Khalatkar's ratings -- Long-Term Issuer Rating: assigned 'IND BB'/Stable -- INR27.5 million fund-based limits: assigned 'IND BB'/Stable -- INR135 million non-fund-based limits: assigned 'IND A4+' -- INR27.6 million term loan: assigned 'IND BB'/Stable KLR INDUSTRIES: ICRA Lowers Rating on INR28.5cr Loan to 'D' ----------------------------------------------------------- ICRA has downgraded the long-term rating assigned to the INR28.50 crore fund based limits of KLR Industries Limited to [ICRA]D from [ICRA]C. ICRA has also downgraded the short-term rating assigned to the INR12.50 crore non-fund based limits of KLRIL to [ICRA]D from [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 28.50 [ICRA]D (downgraded from [ICRA]C) Non Fund Based Limits 12.50 [ICRA]D (downgraded from [ICRA]A4) The downgrade in ratings reflects the company's inability to timely service its debt obligations owing to the stretched liquidity position arising from delayed receivables from international markets; significant share of export sales to African markets leading to geopolitical risks; and competitive industry characterized by a large number of small firms resulting in thin operating margins. The ratings are further constrained by the seasonality of its business which is vulnerable to climate changes; lack of formal hedging mechanism exposing profitability to volatility in the forex market; and thin profitability due to interest charges. Going forward, the ability of the company to timely make debt repayments and effectively manage its working capital requirements remain the key credit rating drivers. KLR Industries Limited was initially established as a small unit -- KLR Universal -- by Mr. K. Laxma Reddy in 1985. KLR Universal was engaged in manufacturing button bits, a tool used in water well drilling applications, before being incorporated as KLR Industries Limited in January 2002. The company has a manufacturing facility at Cherlapally, Hyderabad. KLRIL is engaged in the business of manufacturing drilling equipments such as drilling rigs, hammers, and bits, for the application of water wells, mining, piling, geological survey, construction, etc. KRR DRUGS: CRISIL Assigns B+ Rating to INR35MM Cash Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of KRR Drugs and Chemicals Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 19 CRISIL B+/Stable Cash Credit 35 CRISIL B+/Stable Inland/Import Letter of Credit 20 CRISIL A4 The ratings reflect KCPL's modest scale of operations in the intensely competitive bulk drugs industry, and its working capital intensive nature of operations. These rating weaknesses are partially offset by the benefits that KCPL derives from its promoters' extensive experience in the pharmaceuticals business and its average financial risk profile marked by moderate gearing and debt protection metrics. Outlook: Stable CRISIL believes that KCPL will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if the company improves its scale of operations and profitability on a sustained basis coupled with improvement in working capital management, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in its financial risk profile on account of aggressive debt-funded expansions or weakening of liquidity due to delay in receivables or subdued cash accruals. Incorporated in 2004, KCPL is engaged in manufacturing of bulk drugs and intermediaries. The company is promoted by Mr. Murali Krishnam Raju Vadlamudi M B RUBBER: CRISIL Reaffirms B+ Rating on INR100MM Cash Loan ------------------------------------------------------------ CRISIL has revised its outlook on the long-term bank facilities of M B Rubber Private Limited to 'Stable' from 'Negative' and reaffirmed the rating at 'CRISIL B+'. the short-term facility has been reaffirmed at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4 (Reaffirmed) Cash Credit 100 CRISIL B+/Stable (Outlook revised from 'Negative' and rating reaffirmed) Letter of Credit 20 CRISIL A4 (Reaffirmed) Proposed Bank Guarantee 57 CRISIL A4 (Reaffirmed) The outlook revision reflects improvement in liquidity profile marked by reduction in bank limit utilisation to 41% for the 12 months ended May 2016, against 70% the previous year. Also, gearing improved to 2.67 times as on March 31, 2016, from 4.64 times the previous year. Business risk profile reverted to historical levels with topline of INR755 million in fiscal 2016 and operating margins of 5.8%. The business risk profile is supported by the established marketing network. CRISIL's ratings on the bank facilities of MBR continue to reflect the small scale of operations, weak financial risk profile marked by high gearing, and large working capital requirement. These weaknesses are partially offset by the extensive experience of MBR's promoters in the footwear industry and its established marketing network. Outlook: Stable CRISIL believes MBR will continue to benefit from the extensive industry experience of its promoters and established network. The outlook may be revised to 'Positive' if scale of operation increases, profitability is stable, and working capital requirements reduce. The outlook may be revised 'Negative' if large working capital requirement, sizeable debt-funded capital expenditure, or decline in operating margin weakens financial risk profile, especially liquidity. Incorporated in 1988, MBR manufactures a wide variety of footwear including rubber, canvas wear, and hawai slippers. The company is a major supplier of footwear, raincoats, and ground sheets to defence, paramilitary forces, and the Indian Railways. MBR's plant in Sahibabad (Uttar Pradesh) has capacity to manufacture 0.4 million pairs of footwear per month. MEGADIMENSION INFRA: CRISIL Suspends B+ Rating on INR80MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Megadimension Infra Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 80 CRISIL B+/Stable 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. MIPL was incorporated in 2012, and develops real estate. The company is constructing a residential project in Lucknow (Uttar Pradesh). MIPL is promoted by Mr. Shamim Khan and Mr. Haseen Khan. MITTAL FILES: CRISIL Suspends B+ Rating on INR42.6MM Term Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Mittal Files and Tools Private Limited (MFTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 2.4 CRISIL B+/Stable Term Loan 42.6 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by MFTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MFTPL is yet to provide adequate information to enable CRISIL to assess MFTPL'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, MFTPL manufactures various types of steel files and rods. MFTPL has its registered office in Thane (Maharashtra) and is promoted by Mr. Narendra Kumar Mittal. NALANDA MANAGEMENT: CRISIL Suspends 'D' Rating on INR79MM Loan -------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Nalanda Management Institutes Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 79 CRISIL D The suspension of ratings is on account of non-cooperation by Nalanda with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Nalanda is yet to provide adequate information to enable CRISIL to assess Nalanda'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. Nalanda was originally established as Soham Educational Institutes Pvt Ltd by Mr. Chaitanya Parikh and Prof. Dilip D Patel in 2007. The name was changed in March 2009. The company had undertaken capex in 2006-07 (refers to the financial year April 1 to March 31) to build and operate education institute primarily offering the BBA course and other courses like Owner Management Programme (OMP) for entrepreneurs having ten or more years of experience. Although the project is complete, the company has not yet commenced operations. However, the company now intends to offer cyber security courses of short duration of 3 months to 6 months along with BBA and OMP course. PRATEEK ALLOYS: Ind-Ra Affirms 'IND B+' Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Prateek Alloys Private Limited's (PAPL) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects that though PAPL's numbers remained weak, they improved in the first half of FY17. Credit metrics remained weak but still improved in 1HFY17 with gross interest coverage (operating EBITDA/gross interest expense) of 1.21x (FY16: negative 1.1x) and net financial leverage of 14.34x (FY16: negative 6x). EBITDA margin also improved to 3.21% during 1HFY17 as compared to negative 3.4% during FY16. Improvement in EBITDA margin was mainly due to decrease in cost of raw material and decrease in power and fuel charge. The ratings reflect its tight liquidity situation as the maximum utilisation of fund-based limits was close to 100% during the six months ended October 2016. The ratings, however, continue to benefit from founders' experience of more than a decade in the MS Ingots manufacturing business. RATING SENSITIVITIES Positive: A positive rating action could result from an improvement in the scale of operations along with a rise in the profitability leading to an overall improvement in the credit metrics. Negative: A negative rating action could result from a fall in the profitability leading to deterioration in the overall credit metrics. COMPANY PROFILE PAPL was incorporated in 2001 by Shikhir Agarwal and Girija Agarwal. It manufactures MS ingots, the primary raw material for rolling mills manufacturing MS bars, angels and channels. The company has its manufacturing facility in Kundaim (Goa). PAPL's ratings: -- Long-Term Issuer Rating: affirmed at 'IND B+'/Stable -- INR100 million fund-based working capital limits: affirmed at 'IND B+'/Stable -- INR120 million non-fund-based working capital limits (increase from INR74 million): affirmed at 'IND A4' POLYMER COATINGS: CRISIL Suspends B+ Rating on INR40MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Polymer Coatings and Inks Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting under Letter of Credit 10 CRISIL A4 Cash Credit 40 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by PCIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PCIPL is yet to provide adequate information to enable CRISIL to assess PCIPL'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 1985, PCIPL manufactures printing inks. PCIPL is promoted by Mr. Yuvraj Atone and has its registered office in Nagpur (Maharashtra). PRE UNIQUE: Ind-Ra Assigns 'IND B-' Long Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Pre Unique (India) Private Limited a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable. KEY RATING DRIVERS The rating reflects project execution risk and lack of revenue visibility. PUIPL is carrying out the construction of an edible oil mill for Telangana State Cooperative Oilseeds Growers Federation Limited. The company has entered into a joint venture with Malaysia-based Pre Unique Sendirian Berhad for the construction project. The project is scheduled to commence commercial operations in March 2017. PUIPL claims that construction is on schedule. As of October 2016, PUIPL had no other projects in its order book. RATING SENSITIVITIES Positive: Scheduled project completion and realisation of payment on time, along with more work orders, will lead to a positive rating action. Negative: A delay in project execution leading to a cash flow mismatch will be negative for the rating. COMPANY PROFILE Incorporated in November 2015, Hyderabad-based PUIPL is engaged in the design, supply, fabrication and commissioning of palm oil mills, and constructs captive power and effluent treatment plants at such mills. PUIPL's ratings -- Long-Term Issuer Rating: assigned 'IND B-'; Outlook Stable -- INR10 million fund-based working capital limit: assigned 'IND B-'/Stable/'IND A4' -- INR100 million non-fund-based limit: assigned 'IND A4' Q NINETH: CRISIL Reaffirms B+ Rating on INR110MM Cash Loan ---------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Q Nineth Ceramics continue to reflect the firm's below-average financial risk profile, marked by weak debt protection metrics and low net worth, and its modest scale of operations in the intensely competitive tile trading segments. These weaknesses are partially offset by the extensive industry experience of the promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Open Cash Credit 110 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that QNC will continue to benefit over the medium term from its established relationships with suppliers and its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm improves its financial risk profile, while significantly increasing its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if QNC posts low cash accruals, or undertakes a large debt-funded capital expenditure programme, or if its working capital management deteriorates, resulting in deterioration of its financial risk profile. QNC was set up in Thirukkad (Kerala) in 2013 by Mr. Moopan Kunnath. The firm trades in tiles, marbles, and granite. R.Y. EXTRUSION: ICRA Suspends B- Rating on INR6cr Bank Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B- rating assigned to the INR6.00 crore long-term bank facilities of R. Y. Extrusion Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of requisite information from the company. R. Y. Extrusion Private Limited, incorporated in 2011, is engaged in manufacturing of aluminium sections and profiles for architectural, commercial and industrial use and is promoted by Yadav family with 100% shareholding. The company has set up its plant at MIDC, Ambernath spread across 4142 sq. mt. and is located strategically to cater to customers based in Mumbai, Thane and Navi Mumbai. The company commenced commercial production in August, 2014 and is manufacturing various kinds of aluminium sections and profiles ranging from 5mm to 125mm cross sectional diameter. RADHESHYAM COTTEX: ICRA Reaffirms B+ Rating on INR9.5cr Loan ------------------------------------------------------------ ICRA has re-affirmed the long-term rating of [ICRA]B+ assigned to the INR9.771 crore (enhanced from INR8.97 crore) fund based facilities of Radheshyam Cottex. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- Term Loan 0.27 [ICRA]B+;re-affirmed Fund Based Limit- Cash Credit 9.50 [ICRA]B+;re-affirmed The re-affirmation of the rating continues to factor RC's modest scale of operations and financial profile, characterised by thin profitability, modest debt coverage indicators and high working capital utilisation. ICRA notes the limited value-added nature of operations, coupled with the highly competitive and fragmented industry structure, arising from low entry barriers, exerting further pressure on the firm's profitability margins. The rating, however, continues to favourably factor in the past experience of the promoters in the cotton ginning and pressing industry. Furthermore, the location of RC's manufacturing facility in Rajkot, Gujarat, ensures the ready availability of the key raw material of high quality raw cotton. The rating also takes into account the firm's supply arrangement with Arvind Limited, which ensures steady demand for the products. ICRA expects RC's revenues to increase by 1% in FY2017 over that of FY2016. The firm's capital structure, albeit leveraged, is expected to improve in FY2017 as supported by the repayment of the term loan and the increase in the net-worth base, following an increase in accumulated profits. The firm's ability to scale up its operations, while improving its profitability, and effectively managing its working capital requirements, will be positive rating factors. RC's operating profits would, however, remain vulnerable to adverse movements in raw cotton prices, which are subject to seasonality, crop harvest and Government regulations regarding MSP of raw cotton and export of cotton bales. Furthermore, RC being a partnership firm, any significant capital withdrawals by the partners would adversely impact its capital structure. Radheshyam Cottex (RC) was acquired from M/s Shah Govardhandas Bhikharidas. It was subsequently established as a partnership firm in November 2010 by Mr. Mahavirsinh Vala and four other partners, who collectively have an experience of over a decade in the cotton industry. RC is engaged in the ginning and pressing of cotton. The manufacturing facility of the firm is located at Jasdan, in the Rajkot district of Gujarat, and is equipped with 20 ginning machines and a pressing machine with a production capacity of ~15,780 cotton bales per annum. Recent Results RC has reported a net profit after tax and depreciation of INR0.15 crore on an operating income of INR50.55 crore for the year-ending March 31, 2016 (provisional). RAJARAM MILLS: CRISIL Suspends 'B' Rating on INR50MM Cash Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Rajaram Mills Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable Letter of Credit 20 CRISIL A4 The suspension of ratings is on account of non-cooperation by RMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RMPL is yet to provide adequate information to enable CRISIL to assess RMPL'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 1989 by Mr. S.R. Dhanushkodi Raja, Rajaram Mills Private Limited (RMPL) is involved in manufacturing and exporting of cotton yarn. Its manufacturing capacity is located at Rajapalayam (Tamil Nadu). RAMKAMAL CHEMICALS: CRISIL Assigns 'B' Rating to INR70MM Loan ------------------------------------------------------------- CRISIL has revoked the suspension of its rating on the bank facilities of Ramkamal Chemicals Private Limited and has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to RCPL's bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable (Assigned; Suspension Revoked) Letter of Credit 20 CRISIL A4 (Assigned; Suspension Revoked) The rating was 'Suspended' by CRISIL vide the Rating Rationale dated June 22, 2016 since RCPL had not provided necessary information required to take the rating review. RCPL has now shared the requisite information enabling CRISIL to assign a rating on its bank facilities. The ratings reflect a modest scale of operations in the competitive chemicals industry, and vulnerability of operating margin to fluctuations in raw material prices. The ratings also factor in a below-average financial risk profile because of weak capital structure and debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of the promoters. Outlook: Stable CRISIL believes RCPL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of significant growth in revenue and profitability, resulting in improvement in the financial risk profile. The outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, deteriorates because of a decline in cash accrual, a substantial increase in working capital requirement, or any unanticipated debt-funded capital expenditure. RCPL, based in Mumbai, is promoted by Mr. Sahabuddin Khan and his brother, Mr. Sadruddin Khan, who also manage operations. The company manufactures specialty chemicals, mainly solvents. Its manufacturing facility is at Kurkumbh, in the Pune district of Maharashtra. RATHOD INDUSTRIES: ICRA Suspends B+ Rating on INR5.27cr Loan ------------------------------------------------------------ ICRA has suspended the [ICRA]B+ rating assigned to the INR5.27 crore long-term fund based facilities and short term rating of [ICRA]A4 assigned to the INR0.15 short-term non-fund based facility of Rathod Industries. ICRA has also suspended the [ICRA]B+ and [ICRA]A4 ratings assigned to INR0.15 crore unallocated amount of Rathod Industries. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Established in 2009, Rathod Industries is engaged in manufacturing of stainless steel cold rolled patta patti. The firm began commercial operations from March 2011. It has its registered office in Mumbai and a manufacturing facility at Valsad, Gujarat. The manufacturing facility has an installed capacity to produce approximately 4500 metric tons of stainless steel patta patti annually. SCC PROJECTS: ICRA Suspends 'B' Rating on INR14cr Bank Loan ----------------------------------------------------------- ICRA has suspended the long term rating of [ICRA] B assigned to the INR14.0 crore fund based facilities, INR8.0 crore non fund based and INR3.0 crore unallocated facilities of SCC Projects Private Limited. The suspension follows ICRA's inability to carry out rating surveillance in the absence of requisite information from the company. SADAN REALTECH: CRISIL Reaffirms 'B' Rating on INR202.8MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Sadan Realtech Pvt Ltd continue to reflect Sadan's exposure to implementation and demand risks associated with its project, the geographical concentration in its revenue profile, and its vulnerability to the cyclicality and risks inherent in the Indian real estate industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 102.2 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 202.8 CRISIL B/Stable (Reaffirmed) These rating weaknesses are partially offset by the benefits that the company derives from the M2K group's established regional market position and its promoter's experience in executing residential real estate projects through associate companies. Outlook: Stable CRISIL believes that Sadan will continue to benefit over the medium term from its group's established regional market position and its promoter's experience in executing residential real estate projects. The outlook may be revised to 'Positive' if the company's business and financial risk profiles improve significantly, backed by timely construction and sale of its ongoing project and substantial demand, leading to healthy cash accruals. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in project implementation or delays in receipt of customer advances, or significant investment in unrelated projects, leading to pressure on Sadan's revenue and profitability, and hence, on its liquidity. Sadan, incorporated in 2010, is constructing a residential group- housing project, Beau Monde, in Gurgaon. The company is a part of the M2K group of New Delhi and is promoted by Mr. Mahesh Kumar Bhagchandka. SHAHI SHIPPING: CRISIL Reaffirms 'C' Rating on INR50MM Cash Loan ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Shahi Shipping Limited continues to reflect instances of delay by SSL in servicing its debt (not rated by CRISIL); the delays have been caused by the company's weak liquidity, driven by its low cash accruals vis-a- vis scheduled debt repayments and stretched receivables. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Cash Credit 50 CRISIL C (Reaffirmed) Proposed Long Term Bank Loan Facility 30 CRISIL C (Reaffirmed) The ratings also factor in SSL's stretched receivable cycle leading to large working capital requirements. These rating weaknesses are partially offset by the promoter's extensive experience in the logistics industry and their funding support. SSL was established as a partnership firm in 1985 promoted by Mr. S K Shahi. In 1990, the firm was reconstituted as a company, renamed as Shahi Shipping Transport Pvt Ltd. Thereafter, the company was renamed as SKS Logistics Ltd, and subsequently as SSL, when it was reconstituted as a public limited company in 2013. SSL is engaged in the shipping industry, and provides transportation through barges. The company had a fleet of 27 vessels as on March 31, 2015, comprising mini bulk carriers, general cargo carriers, chemical carriers, petroleum carriers, water supply barges, tugs and launches. SHAPE ENGINEERING: Ind-Ra Assigns 'IND B' Long Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Shape Engineering Company Private Limited a Long-Term Issuer Rating of 'IND B'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect SECPL's small scale of operations and weak credit profile. In FY16, revenue was INR108.02 million (FY15: INR63.36 million), net leverage (total adjusted net debt/operating EBITDA) was 4.01x (14.01x), and interest coverage (operating EBITDA/gross interest expense) was 2.07x (0.72x). The ratings factor in high working capital requirements of the business and tight liquidity position as evident from around 96% utilisation of its fund-based limits during the 12 months ended October 2016. The ratings, however, draw support from SECPL's directors' extensive experience of around four decades in the engineering and capital goods industry and strong operating margins of 31.92% in FY16 (FY15: 17.05%). RATING SENSITIVITIES Positive: Significant improvement in the top line, along with improvement in the credit metrics on a sustained basis will lead to a positive rating action. Negative: Deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Incorporated in 1984, SECPL manufactures turbine parts at its 2500MTPA manufacturing unit in Haridwar, Uttarakhand. The company procures raw materials namely, steel and iron ingots from the domestic suppliers and sells the turbine parts to power sector suppliers such as Toshiba JSW Power System Pvt. Ltd., L&T Howden, Bharat Heavy Electricals Limited ('IND AA+'/Negative) , Alstom India etc. SECPL's rating -- Long-Term Issuer Rating: assigned 'IND B'/Stable -- INR105 million fund-based limit: assigned 'IND B'/Stable/'IND A4' -- INR5.80 million non-fund-based limit: assigned 'IND A4' SHIVA TRADING: ICRA Suspends B+ Rating on INR9.5cr Bank Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B+ and short term rating of [ICRA]A4 outstanding on the INR9.50 crore bank facilities of Shiva Trading Company. The suspension follows ICRA's inability to carry out a rating surveillance due to non cooperation from the company. SHIVCHAND RAI: CRISIL Assigns B+ Rating to INR55.8MM Cash Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Shivchand Rai Krishn Kumar (SCK). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55.8 CRISIL B+/Stable The rating reflects modest scale of operations, below average financial risk profile marked by small networth and weak debt protection metrics and susceptibility of operating margin to volatility in raw material prices and to intense competition. These weaknesses are partially offset by the extensive experience of the proprietor in the textile trading business. Outlook: Stable CRISIL believes SCK will continue to benefit from the extensive experience of its proprietor in the trading business. The outlook may be revised to 'Positive' if increase in revenue, stable profitability and significant equity infusion strengthens financial risk profile. The outlook may be revised to 'Negative' if low cash accrual, a stretch in working capital cycle, or unanticipated, large capital expenditure weakens financial risk profile, especially liquidity. SCK is a proprietorship established in 1984 and promoted by Mr. Krishna Kumar Murarka based in Ranchi, Jharkhand. It trades in cotton, synthetic, and grey fabrics. Mr. Murarka has over three decades of experience in the fabric trading business. SHRI GANGA: CRISIL Reaffirms 'B' Rating on INR40MM Term Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of Shri Ganga Four Wheels Private Limited continues to reflect a weak financial risk profile because of a high total outside liabilities to tangible networth (TOLTNW) ratio and weak debt protection metrics. The rating also factors in susceptibility to cyclicality in the automotive industry. These rating weaknesses are partially offset by a tie-up with a reputed automotive manufacturer. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Reaffirmed) Term Loan 40 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that AFPL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of timely stabilisation of revenue and operating profitability and efficient working capital management, leading to improvement in the financial risk profile. The outlook may be revised to 'Negative' in case of low offtake resulting in insufficient cash accrual and hence to stress on financial flexibility. Update Commercial operations were started in September 2015, and operating revenue was around INR156 million in fiscal 2016. In the seven months ended October 31, 2016, operating revenue was INR200 million and is expected to grow by 15-20% per fiscal over the medium term. Operating margin was moderate at around 6% in fiscal 2016, and is expected to remain in the range of 5-6% over the medium term. The financial risk profile has remained weak because of a modest networth, high TOLTNW ratio, and weak debt protection metrics. The TOLTNW ratio was around 26 times as on March 31, 2016. With the equity infusion of INR20 million in fiscal 2017, the ratio is expected to improve over the medium term but will remain high at 5-6 times due to considerable reliance on external borrowing. The interest coverage ratio was 1.10 times in fiscal 2016, and is expected to remain weak at 1.42-1.45 times over the medium term. Liquidity is weak on account of insufficient net cash accrual against term debt obligation, though supported by unsecured loans from promoters. Working capital requirement is large as indicated by gross current assets of 182 days as on March 31, 2016, driven by inventory and debtors of 80 days and 57 days, respectively. The high debtor days is because of the initial stage of operations with a market presence still in the establishment mode. Current ratio was weak at around 0.84 time as on March 31, 2016, indicating high dependence on external borrowing. Incorporated in 2014, SFWPL has set up an automotive dealership for light commercial vehicles of Tata Motors Ltd (rated 'CRISIL AA/Positive/CRISIL A1+) at Sikar, Rajasthan. The company commenced operations from September 2015. SILVER SIGN: CRISIL Reaffirms 'B' Rating on INR30MM LT Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Silver Sign Private Limited continue to reflect its modest scale of operations, large working capital requirements, low profitability, and weak financial risk profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Buyer Credit Limit 50 CRISIL A4 (Reaffirmed) Foreign Letter of Credit 100 CRISIL A4 (Reaffirmed) Overdraft Facility 20 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 30 CRISIL B/Stable (Reaffirmed) These weaknesses are partially offset by the benefits that SSPL derives from its promoters' extensive experience in the polyvinyl chloride (PVC) products industry and its established relationships with major suppliers. Outlook: Stable CRISIL believes SSPL will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationships with major suppliers. The outlook may be revised to 'Positive' in case of significant and substantial improvement in the company's revenue with stable operating profitability, or if there is considerable improvement in its capital structure because of substantial cash accrual or equity infusion along with steady working capital requirements. Conversely, the outlook may be revised to 'Negative' if SSPL reports low cash accrual because of low profitability or large working capital requirements, resulting in a decline in its liquidity. Set up in 2009 by Mr. Arun Kumar Bhaiya, SSPL trades in PVC products such as PVC flexible plastic sheets (flex), PVC lamination films, and PVC vinyl. It recently diversified into importing LED modules. The company has branch offices in Delhi, Mumbai, Chennai, and Kolkata. SONALI ENERGEES: ICRA Suspends B+/A4 Rating on INR24.77cr Loan -------------------------------------------------------------- ICRA has suspended the [ICRA]B+/A4 ratings assigned to the INR24.77 crore bank facilities of Sonali Energees Private Limited. The suspension follows ICRAs inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy; ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise." Sonali Energees Private Limited was incorporated in March 2009 and is engaged in the manufacturing of solar photo voltaic (PV) modules. The company is promoted by members of the Desai family, based in USA and Surat, who have hitherto been involved primarily in the diamond trading business. The module manufacturing plant of the company was commissioned on May 15, 2012 and has an annual installed capacity to produce 25 MW of modules. The plant is located in the Surat Special Economic Zone at Surat, Gujarat. SREE VISHNUPRIYA: ICRA Suspends B+ Rating on INR6cr Loan -------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA]B+ assigned to INR6.00 crore fund based limits and INR0.80 crore unallocated limits of Sree Vishnupriya Motors. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company SVM is an authorized dealer of HMSI- a 100% subsidiary of Honda Motor Company, Japan. Having commenced operations in 2007, the firm at present has 3 showrooms in Vishakhapatnam district of Andhra Pradesh; one each at Narsipatnam, Madhurwada and Chodavaram. The firm is managed by Mr. Ranga who had a prior experience in auto dealership business having run the dealership of Massey Ferguson Tractors (TAFE) for nearly 4 years SRIRANI SATI: CRISIL Lowers Rating on INR80MM Cash Loan to 'B' -------------------------------------------------------------- CRISIL has downgraded its rating on the long term bank facility of Srirani Sati Enterprises Private Limited (SSEPL) to 'CRISIL B/Stable' from CRISIL B+/Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects significant deterioration in the business risk profile because of declining revenue, which stood at INR208.3 million in fiscal 2016 against INR432.4 million in fiscal 2015. It was mainly on account of lower volume sales of thermo-mechanically treated (TMT) bars and the same was driven by subdued demand scenario in the overall steel industry. Further, the rating also takes into consideration SSEPL's high working capital intensive nature of operations as reflected in large receivables and average inventory holding period. CRISIL believes SSEPL's business risk profile should remain susceptible to demand from the key end user industries over the medium term, while profitability is expected to remain susceptible to volatility in steel prices. The rating reflects SSEPL's working-capital-intensive operations and weak financial risk profile marked by small networth and below average debt protection metrics. The rating also takes into consideration its low bargaining power with the principal and exposure to intense competition in the iron and steel industry. These weaknesses are partially offset by the extensive experience of SSEPL's promoters in the iron and steel industry and its association with Electrosteel Steels Ltd (Electrosteel) and JSW Steels Ltd (JSW). Outlook: Stable CRISIL believes SSEPL will maintain its credit risk profile backed by the extensive experience of its promoters in the iron and steel industry and its association with JSW and Electrosteel. The outlook may be revised to 'Positive' if sizeable cash accrual or improved working capital management or capital infusion by promoters improves liquidity and debt protection metrics. The outlook may be revised to 'Negative' in case of low accrual or inefficient working capital management or if large debt-funded capital expenditure weakens financial risk profile, particularly liquidity. SSEPL, set up in 2011-12 (refers to financial year, April 1 to March 31) by Patna-based Mohanka family, is an authorised distributor of Electrosteel for thermo-mechanically treated (TMT) bars and pig iron, and of JSW for sale of TMT bars and wire rods in Bihar. SSEPL commenced operations from 2012-13. In addition, the company also trades in structural steel. The day-to-day operations of the company are looked after by its promoter- director Mr. Jagdish Prasad Mohanka and Mr. Prakash Kumar Mohanka. SUMA FOODS: CRISIL Assigns B+ Rating to INR80MM Cash Loan --------------------------------------------------------- CRISIL has assigned 'CRISIL B+/Stable' to the long-term bank facilities of Suma Foods Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable Term Loan 70 CRISIL B+/Stable The rating reflects limited track record of operations and average financial risk profile because of high gearing and weak debt protection metrics and working capital-intensive operations. These weaknesses are partially offset by experience of promoters in the basmati rice industry and their funding support. Outlook: Stable CRISIL believes SFPL will continue to benefit over the medium term from the promoters' experience and funding support. The outlook may be revised to 'Positive' if large sales or profitability or substantial equity infusion strengthens capital structure. Conversely, the outlook may be revised to 'Negative' if cash accrual is significantly low, working capital requirement is sizeable or a large, debt-funded capital expenditure is undertaken. Karnal-based SFPL, incorporated in 2015 by Mr. Sachin Singla and Mr. Ankit Singla, mills and processes paddy. The company started operations in May 2015; it has milling and sorting capacity of 16 tonne per hour. SFPL, reported PAT (profit after tax) of INR1.1 million on operating income of INR418.9 million for fiscal 2016. SURENDRA STEELS: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating ----------------------------------------------------------------- India Ratings & Research (Ind-Ra) has assigned Surendra Steels Private Limited a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The rating reflects SSPL's moderate scale of operations and financial profile. According to provisional financials for FY16, revenue was INR1,520 million (FY15: INR1,499.4 million). Its credit profile was moderate in FY16, with an EBITDA margin of 4.1% (FY15: 3.0%), a gross interest coverage (EBITDA/interest) of 4.6x (2.1x) and a net leverage (net debt/EBITDA) of 4.2x (3.9x). Moreover, SSPL's liquidity was moderate, indicated by a 68.37% average utilisation of working capital facilities for the 12 months ended October 2016.| The ratings benefit from over 30 years of experience of SSPL's directors in the iron and steel industry. RATING SENSITIVITIES Positive: A positive rating action may result from a substantial improvement in scale of operations, along with an improvement in credit metrics. Negative: A negative rating action may result from a deterioration in the credit metrics. COMPANY PROFILE Incorporated in 1989, SSPL is an authorised dealer for JSW Steel Limited ('IND AA-'/Negative) in Guwahati, Assam. In addition, the company manufactures colour-coated roofing sheets, pre-painted roofing sheets and poly steel roofing sheets. SSPL is managed by Mr Sitaram Agarwal, Mr Surendra Kumar Agarwal and Mr Pradeep Kumar Agarwal, who each have two decades of experience. SSPL's ratings: -- Long-Term Issuer Rating: assigned 'IND BB+'/ Stable -- INR36.1 million long-term loan: assigned 'IND BB+'/Stable -- INR410 million fund-based facilities: assigned 'IND BB+'/Stable TACON INFRASTRUCTURE: CRISIL Ups Rating on INR58.9MM Loan to B+ --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Tacon Infrastructure Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL B/Stable', and reaffirmed the company's short-term bank facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 420 CRISIL A4 (Reaffirmed) Cash Credit 50 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Letter of Credit 10 CRISIL A4 (Reaffirmed) Overdraft Facility 50 CRISIL A4 (Reaffirmed) Proposed Long Term 58.9 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL B/Stable') Rupee Term Loan 1.1 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects the improvement in TIPL's operating performance in fiscal 2016 as reflected in increased revenue and improved profitability. Revenue and operating margin were at INR680 million and 7.4% in fiscal 2016 against INR460 million and 0.8% in the previous fiscal. Cash accrual increased to over INR36 million from less than INR9 million. The outstanding order book of INR703.0 million also provides revenue sustainability over the near to medium term. Liquidity has also improved with moderate cash accrual, no debt repayments and average bank limit utilisation of 86%. The ratings reflect TIPL's average scale and working capital- intensive operations, and exposure to competition in the fragmented civil construction industry. These weaknesses are partially offset by its moderate financial risk profile because of low gearing and comfortable debt protection metrics, and its promoters' extensive experience. Outlook: Stable CRISIL believes TIPL will continue to benefit from its promoters' extensive experience and its healthy order book. The outlook may be revised to 'Positive' in case of large accrual, backed by a significant increase in revenue, and sustained margin. The outlook may be revised to 'Negative' if the financial risk profile, including liquidity, weakens because of a decline in accrual or stretch in working capital cycle or large, debt-funded capital expenditure TIPL was originally set up in 1994 as a partnership firm, Trans Asia Company, by Mr Mansukhbhai Joshi, Mr Navinchand Modha, and Mr Devjibhai Odedhara in Porbandar, Gujarat. The firm was reconstituted as a private limited company with the current name in 2000. TIPL undertakes dam and canal civil work, construction of roads and highways, and construction of residential and other buildings. For fiscal 2016, TIPL's net profit was INR26.3 million on sales of INR679.7 million, against a net loss of INR15 million on sales of INR46.1 million for fiscal 2015. UB ENGINEERING: ICRA Suspends 'D' Rating on INR770cr Loan --------------------------------------------------------- ICRA has suspended [ICRA]D rating assigned to the INR105.00 crore1 Term Loan, INR75.00 crore Cash Credit and INR770.00 crore non fund based facilities and [ICRA]D rating assigned to the INR770.00 crore short term non fund based facilities of UB Engineering Limited. The non fund based facilities are interchangeable between long term and short term such that total utilization should not exceed INR770 crore. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. ICRA will withdraw the rating in case it remains under suspension for a period of three years. UB Engineering Limited, erstwhile Western India Erectors Private Limited was set-up by Mr. A. S. Wadikar in 1963. In 1989, UB group acquired a controlling stake in the company in a bid to diversify its operations and establish its presence in the engineering and construction industry. The company has been registered under Board of Industrial and Financial Reconstruction (BIFR) after defaulting on the debt obligations following stretched liquidity position. UTTARAKHAND UTHAN: Ind-Ra Withdraws 'IND BB' Long Term Loans ------------------------------------------------------------ India Ratings &and Research (Ind-Ra) has withdrawn the ratings on Uttarakhand Uthan Samiti's (UUSs) INR75.5m long-term loans and INR204.5m fund-based working capital limits from 'IND BB'; Outlook Stable. The instrument ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for UUS. UUS's Ratings: -- INR75.5 million long-term loans: 'IND BB'/Stable; rating withdrawn -- INR204.5 million fund-based working capital limits: 'IND BB'/Stable; rating withdrawn VIJAY V.: CRISIL Reaffirms B+ Rating on INR40MM Cash Loan --------------------------------------------------------- CRISIL's ratings on the bank facilities of Vijay V. Salunkhe continue to reflect the firm's small scale of operations in the intensely competitive civil construction industry, the geographical concentration in its revenue, and its large working capital requirement. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL A4 (Reaffirmed) Cash Credit 40.0 CRISIL B+/Stable (Reaffirmed) The ratings also factor its subdued financial risk profile. These weaknesses are partially offset by its proprietor's extensive industry experience and its healthy operating profitability. Outlook: Stable CRISIL believes VVS will continue to benefit from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if significant revenue growth and sustained profitability lead to sizeable cash accrual, and if working capital management is efficient. The outlook may be revised to 'Negative' if low cash accrual, or stretch in working capital cycle, or capital withdrawal weakens the financial risk profile, particularly liquidity. VVS, established in 1996 and based in Pune, Maharashtra, is a proprietorship concern of Mr Vijay Vasantrao Salunkhe. The firm is a registered Class-1 contractor with Pune Municipal Corporation, Pimpri-Chinchwad Municipal Corporation, and Maharashtra Jivan Pradhikaran. It primarily undertakes construction and maintenance contracts for water supply systems and drainage-sewer lines. VSK LABORATORIES: ICRA Suspends 'B' Rating on INR17cr Loan ---------------------------------------------------------- ICRA has suspended the long-term rating of [ICRA] assigned to INR17.00 crore fund based limits and INR6.00 crore unallocated limits of Vsk Laboratories Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. VSK Laboratories Private Limited was incorporated in the year 2006, with the objective of manufacturing Active Pharmaceutical ingredients (API's). The company is currently setting up an API manufacturing facility in the Chotuppal mandal of Nalgonda district in Telangana. The total capacity of the proposed facility would be 384 Tonnes per annum. The total cost of the project is INR26.35 crore and is funded by a term loan of INR17.00 crore and remaining INR9.35 crore as a promoter contribution. YOGESH CHAUDHRY: Ind-Ra Assigns 'IND BB-' Long Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Yogesh Chaudhry a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect YC's small scale of operations as evident from the topline of INR221.96 million in FY16 (FY15: INR241.37 million). The ratings are constrained by the firm's weak leverage ratio, stressed liquidity position and partnership form. In FY16 the financial leverage (total adjusted debt/operating EBITDAR) was 3.70x (FY15: 1.63x) and the liquidity position was stressed as evident from 98.07% average working capital utilisation during the 12 months ended October 2016. The ratings, however, are supported by two decades of experience of YC's promoters in the civil construction works. The ratings are further supported by satisfactory EBITDA margins of 7.72% in FY16 (FY15: 7.13%) and satisfactory interest coverage (operating EBITDA/Gross Interest Expense) of 2.50x (2.52x). RATING SENSITIVITIES Negative: Decline in operating profitability leading to significant deterioration in credit metrics will be negative for the ratings. Positive: A significant improvement in revenue while credit profile being improved or maintained will be positive for the ratings. COMPANY PROFILE YC was established in 1996 and is engaged in the business of civil construction works. It has its head office in Bharatpur (Rajasthan). YC ratings: -- Long-Term Issuer Rating: assigned 'IND BB-'/Stable -- INR50 million fund-based limits: assigned 'IND BB-'/Stable/'IND A4+' -- INR70 million non-fund-based limits: assigned 'IND A4+' ========= J A P A N ========= JINHEUNG SAVINGS: Bids for OP Bancorp Shares Due Dec. 9 ------------------------------------------------------- Jinheung Savings Bank is putting its 322,500 shares of common stock of OP Bancorp, the holding company of Open Bank, up for sale. The deadline of the submission of Letter of Intent is on Dec. 9, 2016. The deadline for submission of Final Bid Proposal will be on Dec. 21, 2016. Samsung Securities, Co., Ltd., is appointed as the sale advisor. =============== M A L A Y S I A =============== EKA NOODLES: Net Loss Widens to MYR5.9MM in 3Q Ended Sept. 30 ------------------------------------------------------------- The Edge Markets reports that EKA Noodles Bhd, which fell into Practice Note 17 (PN17) status three months ago, saw its net loss for the third quarter ended Sept. 30, 2016,, widen to MYR5.9 million or 2.64 sen a share against MYR1.65 million or 53 sen a share a year earlier. This followed a 50.3% drop in revenue to MYR6.33 million from MYR12.73 million in 3QFY15, the group said in a filing with Bursa Malaysia, the report relates. For the cumulative nine-month period, the group's net loss totalled MYR14.53 million or 4.66 sen a share. Revenue amounted to MYR21.94 million, according to The Edge Markets. EKA Noodles Berhad (KLSE:EKA) -- http://www.ekanoodles.com/-- is an investment holding company. The Company is engaged in the manufacturing and marketing of various types of rice, sago sticks (vermicelli), sago starch and related products in Malaysia. The Company's product categories include Bihun, Bihun Siam, Instant Bihun, Laksa, Instant Noodles and Others. The Company's brands include Bihun EKA, Laksa EKA and Instant Noodle EKA. The Company, through its subsidiaries, is engaged in manufacturing and trading of beehoon and beehoon laksa, and manufacturing and trading of noodles and its related products. The Company sells its products primarily to small wholesalers and retailers. The Company's subsidiaries include Kilang Bihun Bersatu Sdn. Bhd., Rasayang Food Industries Sdn. Bhd., Bersatu Noodles Industries Sdn. Bhd., EKA Foodstuff Sdn. Bhd. and Kilang Bihun Bersatu (East Malaysia) Sdn. Bhd. ================= S I N G A P O R E ================= F J BENJAMIN: Placed on SGX Watch List After 3 Years of Losses -------------------------------------------------------------- Rachael Boon at The Strait Times reports that the tough retail scene has meant that fashion group F J Benjamin Holdings, which has now racked up losses for three consecutive years, has failed to meet the financial entry criterion set by the Singapore Exchange (SGX). It was placed on the SGX watch list on Dec. 5 for not meeting this criterion, the report says. It had already in March failed to meet the minimum trading price criterion. "There's nothing specific to report now except that the management has been working tirelessly to strengthen our business across all geographies in this challenging retail environment. Our group restructuring, which started three years ago, is nearly completed, and we believe we are now on a stronger footing to move ahead," the Strait Times quotes Chief executive Nash Benjamin as saying. Last month, F J Benjamin, which made international headlines when the Duchess of Cambridge wore its label, Raoul, in 2012, said it was in talks with a potential international investor, the Strait Times recalls. Its net loss grew 35% to $23 million in the 12 months to June 30 while revenue fell 14% to $253.6 million -- the third consecutive year of losses, the report discloses. F J Benjamin said that business is continuing as usual, the report relays. Singapore-based F J Benjamin Holdings Ltd (SGX:F10) -- http://www.fjbenjamin.com/-- is engaged in brand building and management, and development of retail and distribution networks for international luxury and lifestyle brands across Asia. ==================== S O U T H K O R E A ==================== * Korea Financial Watchdog Picks 176 Firms for Restructuring ------------------------------------------------------------ Yonhap News Agency reports that South Korea's state financial watchdog on Dec. 6 selected a total of 176 local small and medium- sized enterprises (SMEs) for immediate corporate restructuring. According to Yonhap, the Financial Supervisory Service (FSS) conducted a credit risk assessment of 2,035 SMEs here in a regular move taken under a related corporate law. As a result, the 176 companies were put on the blacklist, a 28.5 percent increase from the average of 137 over the past three years, the report says. Yonhap relates that the FSS said it has applied stricter criteria to the evaluation for "pre-emptive and active" corporate restructuring amid a continued economic slump in Asia's fourth- largest economy. "It's the SMEs that are hit directly by a decrease in large firms' sales and business downturn," Yonhap quotes Chang Bok-seop, director-general of the FSS's credit supervision bureau, as saying. "Most of the companies requiring restructuring are component manufacturers." In particular, 14.8 percent of the 176 firms are from the shipbuilding, construction, petrochemical, steel and shipping industries, which are susceptible to business cycles, added the FSS, Yonhap relays. Yonhap says the restructuring of the companies is expected to increase the burden for local banks. Total credit extended by lenders here came to KRW1.97 trillion (US$1.7 billion) as of end-September, Yonhap discloses. They need KRW320 billion in additional loan-loss reserves to cover the restructuring of the companies, adds Yonhap. ********* 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 ***