/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171016.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, October 16, 2017, Vol. 20, No. 205 Headlines A U S T R A L I A 101 IT: First Creditors' Meeting Set for Oct. 23 ALL BRICK: First Creditors' Meeting Set for Oct. 23 AUSDRILL LTD: S&P Raises ICR to 'BB-', Outlook Stable BIGWAY INTERIORS: Second Creditors' Meeting Set for Oct. 12 FERRARI RACING: Second Creditors' Meeting Set for Oct. 23 MELBOURNE CRUISERS: First Creditors' Meeting Set for Oct. 24 OSHER BLUE: First Creditors' Meeting Set for Oct. 25 PALADIN ENERGY: Bondholders May Provide More Funds C H I N A ZHONGRONG XINDA: Fitch Assigns BB Senior Unsecured Rating H O N G K O N G CHINA FORESTRY: HK Regulator Drops Case vs. StanChart, UBS I N D I A AKKAVILA K: CRISIL Reaffirms 'B+' Rating on INR4.5MM Term Loan BAGORI POLYMERS: Ind-Ra Moves BB- Rating to Non-Cooperating BHUSHAN STEEL: IRP Invites Resolution Plans From Public BIRMI INTERNATIONAL: Ind-Ra Moves BB+ Rating to Non-Cooperating EXCEL VINYL: CRISIL Reaffirms B+ Rating on INR2.85MM Term Loan GEETANJALI GRAPHICS: Ind-Ra Moves BB- Rating to Non-Cooperating HARBANSH LAL FOODS: Ind-Ra Withdraws BB+ Long-Term Issuer Rating HARESH CHEMICALS: CRISIL Reaffirms 'B' Rating on INR4MM Loan HARESH OVETA: CRISIL Reaffirms B+ Rating on INR2MM LT Loan HARINA BIOCULTURE: CRISIL Assigns B+ Rating to INR9MM Cash Loan INDO LAMINATES: CRISIL Lowers Rating on INR15MM Cash Loan to 'D' JINDAL RICE: Ind-Ra Migrates B Issuer Rating to Non-Cooperating K.K. TEX: CRISIL Reaffirms 'B' Rating on INR6MM Cash Loan KIWI ALLOYS: CRISIL Reaffirms 'B' Rating on INR5.25MM Cash Loan KONDUSKAR TRAVELS: CRISIL Reaffirms B- Rating on INR11.5MM Loan LAVASA CORP: UltraTech Cement Files Insolvency Bid Against Firm M P BOARD: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating MASTER INDIA: CRISIL Reaffirms 'D' Rating on INR27MM LT Loan MEGHA GUM: CRISIL Reaffirms 'D' Rating on INR15MM Cash Loan MODULUS COSMETICS: Ind-Ra Migrates BB+ Rating to Non-Cooperating NANU RAM GOYAL: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating NORTELS SERVICE: CRISIL Reaffirms 'B-' Rating on INR5.7MM Loan NORTHERN MOTORS: CRISIL Reaffirms 'B' Rating on INR6.91MM Loan OLIVE TEX: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating PIPEFIELD INDIA: CRISIL Lowers Rating on INR15MM Cash Loan to B POPULAR MOTOR: CRISIL Reaffirms B+ Rating on INR15MM Loan R.A. MOTORS: CRISIL Reaffirms 'B+' Rating on INR10MM Loan RATNAGIRI CERAMICS: Ind-Ra Withdraws B+ Long-Term Issuer Rating SARASWATI MOTORS: Ind-Ra Moves B Issuer Rating to Non-Cooperating SRI LAKSHMI: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating SHEYN INTERNATIONAL: CRISIL Reaffirms B- Rating on INR7.25MM Loan SHREE NATH: CRISIL Raises Rating on INR6.5MM Cash Loan to B+ SHYAM LEELA: CRISIL Reaffirms B+ Rating on INR7.5MM Cash Loan SHYAMA AGRO: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating SMARTCITY KOCHI: NCLAT Quashes Insolvency Order SUJAI SHIPPING: CRISIL Assigns B+ Rating to INR9.72MM LT Loan TA HYDRAULICS: CRISIL Assigns 'B' Rating to INR6MM Cash Loan THANGAMMAN EXPORTS: CRISIL Assigns C Rating to INR1.7MM LT Loan TIRUMALA COMPRINTS: CRISIL Lowers Rating on INR8.25MM Loan to D UD SOLUTION: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating UNIQUE ORGANICS: CRISIL Lowers Rating on INR10MM Loan to B+ VEGA INFRASTRUCTURE: Ind-Ra Moves BB- Rating to Non-Cooperating VERA INDUSTRIES: CRISIL Reaffirms B Rating on INR7.50MM Cash Loan VISHAL WHEELERS: CRISIL Reaffirms 'B' Rating on INR6.10MM Loan YASH ENTERPRISES: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan S I N G A P O R E ASL MARINE: Allays Auditor's Insolvency Concerns - - - - - ================= A U S T R A L I A ================= 101 IT: First Creditors' Meeting Set for Oct. 23 ------------------------------------------------ A first meeting of the creditors in the proceedings of 101 IT Solutions Pty Ltd will be held at the Karstens Conference Centre Sydney, Level 1, at 111 Harrington Street, in Sydney, New South Wales, on Oct. 23, 2017, at 11:00 a.m. Domenico Alessandro Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of 101 IT Solutions on Oct. 11, 2017. ALL BRICK: First Creditors' Meeting Set for Oct. 23 --------------------------------------------------- A first meeting of the creditors in the proceedings of All Brick Tasmania Pty Ltd will be held at Hotel Grand Chancellor Hobart, 1 Davey Street, in Hobart, Tasmania, on Oct. 23, 2017, at 2:00 p.m. Stephen Robert Dixon and Ahmed Bise of Grant Thornton were appointed as administrators of All Brick on Oct. 13, 2017. AUSDRILL LTD: S&P Raises ICR to 'BB-', Outlook Stable ----------------------------------------------------- S&P Global Ratings raised the issuer credit rating on Australian mining services company Ausdrill Ltd. to 'BB-' from 'B+'. The outlook is stable. S&P said, "We also raised the ratings on Ausdrill Finance Pty Ltd.'s US$300 million, senior unsecured, and subordinated notes by one notch to 'BB-' from 'B+', with the recovery rating remaining at '4'. In addition, we raised our issue ratings on Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd.'s A$200 million, secured, syndicated bank loan by one notch to 'BB+' from 'BB', with the recovery rating remaining at '1'. "We raised the ratings to reflect our expectation that Ausdrill's new contracts, management of costs, and increasing earnings will provide an enduring benefit to the company's credit metrics. In addition, Ausdrill recently raised A$100 million equity (before costs) to fund its growth capital expenditure for new contracts. "We forecast that Ausdrill's funds from operations (FFO) to debt is likely to be greater than 30% in the year ending June 30, 2018, and comfortably above 30% in fiscal 2019, after new projects in African contract mining services fully ramp up. "Our expectation of a modest recovery in trading conditions for the Australian mining services industry would support Ausdrill's business prospects. The recent rebound in commodity prices has increased the number of prospective projects for mining services companies." However, the recovery in contract rates may be modest and slow as miners remain disciplined in containing operating costs. Miners are still cautious in expanding supply and committing significant capital expenditure to large greenfield projects. Therefore, operating efficiency will be key to improving the profit margins of mining services companies. In S&P's view, Ausdrill's restructuring initiatives will improve the efficiency of its operations, and hence, its margins. Ausdrill's exposure to the gold mining sector has somewhat shielded the company from reducing demand for work in other sectors like iron ore, coal or base metals. This is because gold prices have held up well compared with other commodities in 2015 and 2016. In 2017, about 78% of Ausdrill's revenue was derived from gold or copper. S&P said, "That said, in our view, gold is also inherently volatile and maintains an inverse correlation with U.S. interest- rate expectations. The interest rate hike by the Federal Reserve and the continued relative strength of the U.S. dollar could affect gold prices over the next several years. However, we believe that any deterioration in gold prices from an improving global GDP would offer business opportunities in base metals where Ausdrill also has expertise. In addition, favorable currency movements have aided the competitiveness of the Australian and African mines that Ausdrill services. "Ausdrill's growing exposure to Africa is a limiting rating factor, due to our view of higher sovereign and operational risks in Africa, compared with developed countries like Australia. Based on its sales for 2017, Ausdrill's exposure to Africa was about 53%, with Ghana (B-/Positive/B) comprising about 30% of the group's total revenues. The company's newly secured contracts (totaling about US$125 million of annual revenue) are mostly in Africa. "Nonetheless, we consider the company has a long and successful track record in operating on the African continent and manages these risks adequately. However, we do view these jurisdictions as being inherently riskier to operate in when compared with the company's Australian operations. "The stable outlook reflects our expectation that Ausdrill will continue to grow its order book and successfully execute its new contracts in Africa. We expect the company to maintain sufficient liquidity, which will provide the company with a buffer to withstand any moderate weakening in industry conditions or missteps in new projects. "We expect the company's FFO to debt to be materially higher than 30% and for the company to generate positive free operating cash flows when new projects reach steady-state in 2019, following the current stage of heavy capital expenditure." A downgrade could occur if Ausdrill is unlikely to comfortably sustain FFO to debt of 30% and if free cash flows remain negative by 2019. This scenario could occur if: -- The improved trading conditions in the mining services industry are not sustained. For example, if gold prices were to fall significantly pressuring the competiveness of the mines that Ausdrill services with no work from other base metals or bulk commodities to offset the impact; -- Execution issues occurred at Ausdrill's newly secured projects that reduced the company's margin for a prolonged period. An upgrade is less likely due to Ausdrill's growing exposure to Africa and relatively small scale. However, in the longer term, S&P could consider an upgrade if Ausdrill materially improves its scale, commodity diversity, and geographic mix, while maintaining its conservative financial management. BIGWAY INTERIORS: Second Creditors' Meeting Set for Oct. 12 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Bigway Interiors Pty. Ltd has been set for Oct. 12, 2017, at 3:00 p.m., at the offices of Farnsworth Shepard, Level 5, 2 Barrack Street, in Sydney, New South Wales. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Oct. 19, 2017, at 5:00 p.m. Benjamin Michael Carson of Farnsworth Shepard was appointed as administrator of Bigway Interiors on Sept. 16, 2017. FERRARI RACING: Second Creditors' Meeting Set for Oct. 23 --------------------------------------------------------- A second meeting of creditors in the proceedings of Ferrari Racing and Breeding Pty Ltd has been set for Oct. 23, 2017, at 2:00 p.m., at the Conference Room, Plaza Level, BGC Centre, 28 The Esplanade, in Perth, West Australia. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Oct. 20, 2017, at 4:00 p.m. Jeremy Joseph Nipps and Cliff Rocke of Cor Cordis were appointed as administrators of Ferrari Racing on Sept. 18, 2017. MELBOURNE CRUISERS: First Creditors' Meeting Set for Oct. 24 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Melbourne Cruisers Pty Limited will be held at Level 21, 181 William Street, in Melbourne, Victoria, on Oct. 24, 2017, at 11:00 a.m. Craig David Crosbie and Robert Ditrich of PPB Advisory were appointed as administrators of Melbourne Cruisers on Oct. 12, 2017. OSHER BLUE: First Creditors' Meeting Set for Oct. 25 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Osher Blue Pty Limited will be held at Level 5, 379 Kent Street, in Sydney, New South Wales, on Oct. 25, 2017, at 11:00 a.m. Anthony John Warner of CRS Insolvency Services was appointed as administrator of Osher Blue on Oct. 13, 2017. PALADIN ENERGY: Bondholders May Provide More Funds -------------------------------------------------- The Australian reports that Paladin Energy's existing bondholders look like they are going to have to put their hands in their pockets to stave off a complete collapse of the challenged uranium miner, which is in administration. It is understood a deal is being worked through with Paladin's administrator KPMG and bondholders, where they provide more funding for the company as part of a recapitalisation plan that may ultimately result in a debt-for-equity swap, The Australian says. Bondholders, led by JPMorgan, are owed US$372 million and are represented by Korda Mentha, along with law firms Gilbert + Tobin and Kirkland & Ellis, according to The Australian. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 22, 2017, The Southern Times said Paladin Energy, operators of Kayelekela Uranaium Mine in Karonga Malawi and Langer Heinrich in Namibia, has filed for insolvency at the Australian high court after the company failed to pay a debt of US$277 million to a France based company called Electricite de France. Matthew David Woods, Hayden Leigh White and Gayle Dickerson of KPMG were appointed as administrators of Paladin Energy on July 3, 2017. ========= C H I N A ========= ZHONGRONG XINDA: Fitch Assigns BB Senior Unsecured Rating --------------------------------------------------------- Fitch Ratings has assigned a 'BB' senior unsecured rating to China-based diversified services company Zhongrong Xinda Group Co., Ltd. (Zhongrong Xinda; BB/Stable) and assigned a 'BB(EXP)' senior unsecured rating to its proposed US dollar-denominated senior notes. The proposed notes are issued by Zhongrong International Resources Co., Ltd, a wholly owned subsidiary of Zhongrong Xinda, and are rated at the same level as Zhongrong Xinda's senior unsecured rating as they represent the company's unconditional and irrevocable obligations. The final rating is subject to the receipt of final documentation conforming to information already received. KEY RATING DRIVERS Leading Coking Company: Zhongrong Xinda is one of China's top two coking companies, accounting for about 20% of Shandong Province's total production volume. Its large scale, deeper processing lines and long-term procurement contracts with both downstream and upstream producers provide cost advantages against peers and make it less susceptible to fluctuations than the downstream steel industry. Gross profit margins in coking ranged from 14%-15% in 2014-2016, while average annual steel prices fluctuated by about 20%-30%. Zhongrong Xinda's coking business accounted for 18% and 42% of its total revenue and gross profit in 2016, respectively. Logistics, Clean Energy Aid Diversification: Zhongrong Xinda is also China's ninth-largest logistics company and the largest in Shandong Province. The logistics business was originally intended to services its upstream and downstream customers, but has expanded into trading, supply-chain management and LNG-refuelling stations over the last several years, and provides stability to earnings. Logistics and clean energy accounted for 80% and 54% of total revenue and gross profit, respectively, in 2016. Fitch expects a focus on building out LNG stations, as this provides higher and more stable gross profit margins at around 21%-22%, compared with an overall gross margin of 6%-9%. Strong Financial Flexibility: Zhongrong Xinda's substantial liquid financial assets of CNY11 billion at end-2016 can provide liquidity and mitigate the risks of providing external guarantees. Fitch includes 75% of the available-for-sale financial assets in the calculation of FFO adjusted net leverage. In addition, more than half of the company's inventories are held for its coal and coke trading business, and is therefore accounted for as readily marketable inventories. Fitch includes 50% of Zhongrong Xinda's inventory in FFO adjusted net leverage calculation. FFO adjusted net leverage including adjusted financial assets and readily marketable inventories was 5.1x in 2016. Capital Discipline: Management has stated that it will limit future capex to its annual earnings (2016 adjusted profit: CNY3.0 billion), which will result in a shift from negative free cash flow (FCF) to FCF neutral in the medium term. Capex will be driven mainly by investment in building new LNG stations, which Fitch estimates to be CNY900 million a year. Fitch therefore expects the company to start deleveraging beginning in 2017. External Guarantees Raise Leverage: Fitch does not expects the company to increase its external guarantees. FFO adjusted net leverage including adjusted financial assets and readily marketable inventories was 5.1x at end-2016 (end-2015: 3.9x), including external off-balance sheet debt of CNY5.6 billion that the company has guaranteed. However, Fitch believes the counter- party risks from the guaranteed debt are manageable as the borrowers are large, established companies operating within the mining and processing value chain, and the debt is guaranteed on a secured basis. Quality Iron Ore Mine: Zhongrong Xinda acquired 80% of the Hierro Pampa de Pongo (HPP) iron ore project in Peru in 2016. The project is located next to an existing operational iron ore mine with a very low cost base and well-built out infrastructure. Fitch does not expects Zhongrong Xinda to develop the iron ore project in the next 12-24 months, given the significant capex requirement. Fitch also expects the development of the mine will be funded via equity financing and project finance, with debt ringfenced from the company. Fitch has not factored in the capital expenditures or contributions from the Peru iron ore in our financial forecasts as Fitch does not expects the company to develop the mine if the financing is not in place. DERIVATION SUMMARY Zhongrong Xinda is larger in terms of scale than Chinese companies rated 'BB'. It is comparable with its peers in terms of coverage and leverage metrics. FFO adjusted net leverage including adjusted financial assets and raw-materials inventory is comparable with that of China-based Tewoo Group Co., Ltd. (BBB-/Stable), US-based Harsco Corporation (BB/Stable) and Grupo KUO, S.A.B. de C.V. (BB/Stable) of Mexico. Zhongrong Xinda's FFO margin is also comparable with that of commodity trading companies, such as Tewoo. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: - Sales growth slows to 7%-8% in 2018-2019 from the expected sales growth of 24% in 2017. - EBITDA margins to narrow by about 20bp from 2016 to 2019 because the lower-margin logistics business will account for a larger share of revenue and coking coal prices are likely to decline. - Capex of CNY1.6 billion-1.7 billion in 2016-2019. - Fitch has not factored in capex or contributions from the Peru iron ore mine as management is exploring options for a clear development plan RATING SENSITIVITIES Developments that may, individually or collectively, lead to positive rating action include: - FFO adjusted net leverage, including adjusted financial assets and readily marketable inventories, of 2.5x on a sustained basis. Fitch includes 75% of the available-for-sales financial assets in the calculation of the FFO adjusted net leverage - Successful expansion of the logistics and LNG refuelling station businesses that leads to an improved business profile in terms of business diversity and less-cyclical earnings - Consistent FCF generation Developments that may, individually or collectively, lead to negative rating action include: - EBITDA margins decline to less than 5% on a sustained basis (2016: 6.2%) - FFO adjusted net leverage including adjusted financial assets and readily marketable inventories exceeding 3.5x on a sustained basis - FFO fixed-charge coverage below 3.0x on a sustained basis LIQUIDITY Adequate Liquidity: Zhongrong Xinda had CNY6.9 billion of unrestricted cash and CNY5.3 billion of undrawn credit facilities at end-2016, compared with short-term debt of CNY10.6 billion. ================ H O N G K O N G ================ CHINA FORESTRY: HK Regulator Drops Case vs. StanChart, UBS ---------------------------------------------------------- Reuters reports that Hong Kong's securities regulator has dropped a lawsuit against Standard Chartered Plc and UBS Group AG over their roles in the 2009 IPO of timber company China Forestry Holdings Co Ltd, two people with knowledge of the matter said. Reuters relates that the Securities and Futures Commission (SFC) suit filed in January this year sought unspecified damages for "market misconduct" over the IPO of China Forestry filed in November 2009, according to the court documents at that time. UBS and StanChart were joint sponsors, as investment banks and securities firms that underwrite listings in Hong Kong are called, for the initial public offering (IPO), Reuters discloses. China Forestry raised $216 million in the offering, but its shares have been suspended since January 2011, after its auditor said it had found possible accounting irregularities, Reuters recalls. According to Reuters, the company is now in liquidation and has been delisted from the Hong Kong exchange. Reuters notes that the regulator's latest move comes despite the fact it is widening its probe into cases of alleged market manipulation and corporate fraud that risk tarnishing former British colony's reputation as a global financial center. The SFC is probing "substandard work" by 15 firms in their roles as sponsors for IPOs that have caused billions of dollars in investment losses, a senior regulatory official said on Oct. 11, Reuters relays. "The SFC issued the protective writ on s213 action with a view to achieving maximum benefit for investors who have suffered harm from alleged misconduct," the SFC said in a statement on Oct. 13 in response to Reuters request for comment. S213 refers to section 213 of the Securities and Futures Ordinance to combat market misconduct. After considering its legal position, the SFC determined its action against "certain parties was probably time barred", the regulator said, without elaborating and naming any of the banks in its emailed statement, according to Reuters. Reuters states that the SFC's charges in the lawsuit against the two banks also related to China Forestry's 2009 annual report, its 2009 annual results and the results for the first six months of 2010, as per the documents it had filed with Hong Kong's High Court. The regulator had also sued China Forestry itself, as well as the company's two co-founders and its auditor KPMG, Reuters relates citing court documents. It was not immediately clear if the SFC would pursue its lawsuit against those entities, the report notes. Standard Chartered and UBS separately disclosed late last year that the SFC was probing their role as sponsors of unidentified IPOs and that the regulator's actions could result in financial consequences, Reuters says. One of the people with knowledge of the matter said that despite withdrawal of the lawsuit, the SFC's own investigation into the 2009 IPO would continue, which could result in some action against the banks, Reuters adds. China Forestry Holdings Co., Ltd listed on the Hong Kong Exchange in 2009. It was one of China's operators of naturally regenerated forest plantations. The company had rights over plantation assets in Sichuan and Yunnan provinces. ========= I N D I A ========= AKKAVILA K: CRISIL Reaffirms 'B+' Rating on INR4.5MM Term Loan -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Akkavila K Lekshmanan and Company (AKLC) for obtaining information through letters and emails dated July 7, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.5 CRISIL B+/Stable (Issuer Not Co-operating: Rating Reaffirmed) Term Loan 4.5 CRISIL B+/Stable (Issuer Not Co-operating: Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Akkavila K Lekshmanan and Company. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Akkavila K Lekshmanan and Company is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. Set up in 2012, as a proprietorship firm by Mr. Syju Lekshman, AKLC is engaged in manufacturing of M Sand. The firm is based out of Kollam, Kerala. BAGORI POLYMERS: Ind-Ra Moves BB- Rating to Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Bagori Polymers Private Limited's (BPPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR49.7 mil Long-term loans migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Sept. 13, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2012, BPPL manufactures polypropylene woven fabric and woven sacks at its unit at Butibori MIDC, Nagpur. The site has a monthly installed capacity of 190 tonnes. The day-to-day operations are managed by Mr. Mohit Singhania, Mr. Manoj Singhania and Ms Megha Singhania. BHUSHAN STEEL: IRP Invites Resolution Plans From Public ------------------------------------------------------- LiveMint.com, citing an October 9 newspaper advertisement in Times of India edition, reports that the insolvency resolution professional (IRP) of Bhushan Steel Ltd has invited resolution plans from the public to turnaround the business of the debt-laden steel maker, according. The plans can be submitted by resolution applicants who can be potential lenders, investors, or any other person until Dec. 23, 2017, the report states. LiveMint.com relates that the advertisement by Vijaykumar V. Iyer of Deloitte Touche Tohmatsu India LLP, who has been appointed as the IRP for Bhushan Steel, also stated that the committee of creditors is in the process of selecting the eligibility criteria for the appraisal of resolution applicants. "The committee of creditors, pursuant to its meeting held on September 25, 2017, is in the process of adopting the eligibility criteria for its appraisal of the resolution applicants and that upon the finalization of the eligibility criteria, the same shall be made available in the data room to be opened for resolution applicants and shall also be uploaded on the website of the corporate debtor," the advertisement, as cited by LiveMint.com, stated. On submission of resolution plans, the same will be presented by the IRP to the committee of creditors. Further, the evaluation process for the resolution plans presented and the relevant timelines will be decided by the committee of creditors, the report says. "The committee of creditors shall have the right to approve or not approve any resolution plan presented to the committee of creditors by the resolution professional without assigning any reasons to the resolution applicant or the resolution professional," the advertisement showed, LiveMint.com relays. India-based Bhushan Steel manufactures auto-grade steel. Bhushan Steel's total debt stood at around INR42,355 crore as of March 31, the report discloses. The National Company Law Tribunal admitted the bankruptcy plea against the steel company filed by State Bank of India on July 26. The insolvency resolution process for Bhushan Steel is expected to be completed by Jan. 22, 2018, LiveMint.com notes. BIRMI INTERNATIONAL: Ind-Ra Moves BB+ Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Birmi International Private Limited's Long Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR110 mil. Fund based working capital limit migrated to non- cooperating category with IND BB+(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; -- INR13 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating; and -- INR94 mil. Term loan migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2010, Birmi International manufactures polyester fibre for home furnishing and ready-made garments. The company sells its products to dealers and traders across India. The company's 6000mtpa manufacturing plant is located in Panipat, Haryana. EXCEL VINYL: CRISIL Reaffirms B+ Rating on INR2.85MM Term Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Excel Vinyl Coatings Private Limited (EVCPL) continue to reflect EVCPL's small scale of operations, large working capital requirement, and below-average financial risk profile. These rating weaknesses are partially offset by the extensive entrepreneurial experience of its promoter. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Reaffirmed) Cash Credit 1.40 CRISIL B+/Stable (Reaffirmed) Letter of Credit 3 CRISIL A4 (Reaffirmed) Packing Credit .75 CRISIL A4 (Reaffirmed) Rupee Term Loan 2.85 CRISIL B+/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and large working capital requirement: Turnover of INR7.5 crores in fiscal 2017 reflects the modest scale of operations, which prevents benefits arising from economies of scale. Intense competition in the synthetic leather business, further limits pricing flexibility with customers. High gross current assets of 318 days, as on March 31, 2017, reflects working capital-intensive operations. * Below-average financial risk profile: Financial risk profile is below-average due to modest networth of INR0.9 crore and high gearing of 3.7 times as on March 31, 2017. Interest cover is however moderate at 2.2 times for fiscal 2017. Strength * Extensive experience of promoter: Benefits from extensive entrepreneurial experience of the promoter and healthy relationships with suppliers and customers would continue over the medium term. Healthy relationships with suppliers and customers have helped ensure timely and adequate supply of raw materials and repeat orders. Outlook: Stable CRISIL believes EVCPL will continue to benefit over the medium term from the extensive entrepreneurial experience of its promoter. The outlook may be revised to 'Positive' if significantly ramp-up of operations while maintaining operating profitability, or improvement its working capital management results in a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if lower cash accrual, or large, debt-funded capital expenditure, or weakening of working capital management leads to deterioration in its financial risk profile. Incorporated in 2012, EVCPL, based in Chennai, manufactures synthetic leather. It is promoted and managed by Mr. K Natarajan. GEETANJALI GRAPHICS: Ind-Ra Moves BB- Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Geetanjali Graphics' (GG) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20.71 mil. Term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; -- INR30 mil. Fund-based facilities migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR15 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Sept. 21, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE GG was established in 1979 as a partnership firm and later reconstituted as a sole proprietorship in April 2000. The firm is promoted by Mr. Nagsunder. The firm has an installed capacity to print 20 tonnes of paper per day. HARBANSH LAL FOODS: Ind-Ra Withdraws BB+ Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Harbansh Lal Foods Private Limited's (HLFPL) Long-Term Issuer Rating of 'IND BB+'. The Outlook was Stable. The instrument-wise rating action is: -- INR200 mil. Fund-based working capital limit withdrawn with WD rating. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a certificate from the lender. The certificate stated that the bank loan rating is not required anymore as the facility has been transferred to another bank. This is consistent with the Securities and Exchange Board of India's circular dated 31 March 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for HLFPL. COMPANY PROFILE Incorporated in 2004, HLFPL is promoted by Mr. Harbansh Lal. The company is engaged in the production of skimmed milk powder, butter, dairy whitener and others. Its registered office is in Meerut, Uttar Pradesh. Its current installed capacity is 300,000 litres per day. It supplies its products under the Padamshri brand. HARESH CHEMICALS: CRISIL Reaffirms 'B' Rating on INR4MM Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Haresh Chemicals (HC) for obtaining information through letters and emails dated July 13, 2017 and August 7, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 14.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Haresh Chemicals. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for Haresh Chemicals is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable/CRISIL A4'. HC was set up by Mr. Bharat Kasat and his brother Mr. Haresh Kasat in 1984. It trades in several bulk drugs, and has a clientele of over 100 generic drug manufacturers. The firm is managed by Mr. Bharat Kasat. HARESH OVETA: CRISIL Reaffirms B+ Rating on INR2MM LT Loan ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Haresh Oveta (HO) for obtaining information through letters and emails dated July 13, 2017 and August 7, 2017 among others, apart from telephonic communication. However, the issuer has remained non- cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 10 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 2 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Haresh Oveta. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Haresh Oveta is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4'. HO was set up by Mr. Bharat Kasat and his brother Mr. Haresh Kasat in 1984. It trades in several bulk drugs and has a clientele of over 100 generic drug manufacturers. It is managed by Mr. Haresh Kasat. HARINA BIOCULTURE: CRISIL Assigns B+ Rating to INR9MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Harina Bioculture Private Limited (HBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 9 CRISIL B+/Stable The rating reflects below-average financial risk profile marked by a small networth, average capital structure and stretched liquidity, modest scale of operation with low profitability margin and large working capital requirements. These rating weaknesses are partly offset by extensive experience of promoter's in the fish farming industry and established clientele. Key Rating Drivers & Detailed Description Weaknesses * Below-average financial risk profile and stretched liquidity: Modest networth of INR3.05 crore and average capital structure reflected in total outside liabilities to tangible networth (TOLTNW) ratio of over 3 times as on 31st March 2017 constrain the financial risk profile. Furthermore the liquidity is stretched marked by near to full utilisation of bank lines and modest cash accruals. The working capital requirements are driven by moderately large debtors. The company receives limited credit from the suppliers and hence relies substantially on bank lines. * Modest scale of operation and low profitability: With an operating revenue of INR62 crore in fiscal 2017, scale of operations remain modest. Further, the operating profitability has also been low at about 2.4%. Strengths * Extensive experience of promoters: Presence of around two decades in the fishing industry has enabled the promoters to understand demand-supply of shrimps in the international market and establish a strong customer base. Outlook: Stable CRISIL believes HBPL will continue to benefit from the extensive industry experience of the promoters. The outlook may be revised to 'Positive' in case of significant increase in scale of operations and cash accruals along with improvement in liquidity. The outlook may be revised to 'Negative' if sizable working capital requirement, low cash accruals or unanticipated debt funded capex furthers weakens financial risk profile and liquidity. Incorporated on October 14, 2013, and promoted by Mr. Harilal Revabhai Patel, Mr. Jigar Haribhai Patel, and Mr. Tushar Harilal Patel, HBPL is a non-government company that operates fish hatcheries and fish farms. INDO LAMINATES: CRISIL Lowers Rating on INR15MM Cash Loan to 'D' ---------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Indo Laminates Private Limited (ILPL) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Downgraded from 'CRISIL B+/Stable') Letter of Credit 5 CRISIL D (Downgraded from 'CRISIL A4') Term Loan 9 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects the company's delay in meeting term debt obligation because of weak liquidity. Analytical Approach For arriving at the ratings, CRISIL has treated the company's unsecured loan (INR8.3 crore as on March 31, 2017) as neither debt nor equity as it is from the promoters, bears interest lower than the bank rate, and is likely to remain in the business over the long term. Key Rating Drivers & Detailed Description Weaknesses * Delay in repayment of term loan: ILPL has delayed repayment of its term loan facility because of weak liquidity, reflected in fully utilised bank limits. * Large working capital requirement: Gross current assets were at 306 days as on March 31, 2017, because of sizeable receivables and inventory of 155 days and 121 days, respectively. Strengths * Extensive experience of promoters: Presence of more than four decades in the laminates industry has enabled the promoters to establish strong relationship with suppliers and customers. Also, revenue is likely to grow at a healthy pace over the medium term. Established in 1985, ILPL manufactures laminates. It is based in Delhi and its plant is in Bahadurgarh, Haryana. Its daily operations are managed by Mr. Rahul Goyal and Mr. Subhash Goyal. JINDAL RICE: Ind-Ra Migrates B Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Jindal Rice & Gen. Mills' (JRGM) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR210 mil. Fund-based working capital limit migrated to non- cooperating category with IND B(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; and -- INR36.55 mil. Term loan migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE JRGM was established in 1996 as a partnership firm, with Mrs Anita Rani, Mrs Poonam Devi, Mr. Mukesh Kumar, Mr. Sat Narain and Mr. Sushil Kumar as partners. The firm undertakes the processing and trading of Basmati and non-Basmati rice in the domestic market. It also undertakes custom milling operations for the Haryana government. Its manufacturing site is at Gullarpur Road, Nissing, Haryana. The facility has a paddy milling capacity of 300 tonnes/day. K.K. TEX: CRISIL Reaffirms 'B' Rating on INR6MM Cash Loan --------------------------------------------------------- CRISIL Ratings has been consistently following up with K. K. Tex Enterprises (KKTE) for obtaining information through letters and emails dated June 9, 2017 and July 10, 2017 and August 7, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 0.57 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan .43 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of K. K. Tex Enterprises. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for K. K. Tex Enterprises is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. KKTE, established in 2003 by the Mumbai-based Gada family, manufactures various types of grey fabrics, mainly for suits and shirts. The firm's business operations are managed by Mr. Kalpesh Gada. Its promoters have been operating in the textile business over the past 20 years by virtue of their association with other entities operating in a similar line of business. KIWI ALLOYS: CRISIL Reaffirms 'B' Rating on INR5.25MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Kiwi Alloys Limited (KAL) for obtaining information through letters and emails dated July 10, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.25 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 1.75 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 1.00 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Kiwi Alloys Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Kiwi Alloys Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. KAL, incorporated in 2010, was promoted by Mr. Nitin Gupta and his family members. It manufactures mild steel ingots. Its manufacturing plant, located in Bhiwadi, Rajasthan, has an ingot manufacturing capacity of 21,000 tonne per annum. KAL also trades in rice. KONDUSKAR TRAVELS: CRISIL Reaffirms B- Rating on INR11.5MM Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the long-term bank facilities of Konduskar Travels Private Limited (KTPL) at 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Drop Line Overdraft Facility 11.5 CRISIL B-/Stable (Reaffirmed) Proposed Term Loan 6.5 CRISIL B-/Stable (Reaffirmed) The rating continues to reflect below-average financial risk profile and leveraged capital structure. The rating also factors in exposure to geographical concentration in revenue and intense competition in passenger transport industry. These weaknesses are mitigated by an established regional presence and moderate operating efficiency. Key Rating Drivers & Detailed Description Weaknesses * Below-average financial risk profile: Networth has been wiped out on of account continued losses. Further, capital structure is leveraged as reflected by negative gearing and total outside liabilities to tangible networth as on March 31, 2017. * Geographical concentration: Geographical concentration in revenue is high as operations are primarily carried out in Maharashtra, Gujarat and Karnataka. Strengths * Established regional presence: Benefits from an established regional presence developed under the guidance of an experienced management should support business. * Moderate profitability: Profit after tax margin was moderate at 5% for fiscal 2017 against losses of 6.2% the previous year. Outlook: Stable CRISIL believes KTPL will continue to benefit from an established regional position in the intensely competitive passenger transport business and experienced management. The outlook may be revised to 'Positive' if growth in revenue and profitability leading to sizable cash accrual or large capital infusion strengthens capital structure and liquidity. The outlook may be revised to 'Negative' if low revenue and profitability or high capital expenditure or further funding support to associates weakens financial risk profile, especially liquidity. Incorporated in 1994, KTPL is based in Kolhapur (Maharashtra) and promoted by Konduskar and family and provides passenger transport services mainly in Maharashtra, Goa, Karnataka and Gujarat. LAVASA CORP: UltraTech Cement Files Insolvency Bid Against Firm --------------------------------------------------------------- ET Now Digital reports that Aditya Birla group company UltraTech Cement on Oct. 9 has filed an insolvency petition against HCC's Lavasa Corporation. The company had filed the petition at the Mumbai bench the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), ET Now relates citing Financial Express. The case was listed for the hearing earlier this week. The NCLT has fixed November 16 as the date for hearing again, ET Now notes. ET Now, citing regulatory filing, says the conversion will also be applicable to two subsidiaries -- Warasgaon Assets Maintenance and Warasgaon Power Supply. "The lenders took notice of the fact that due to delay in implementation of the earlier joint lenders' forum (JLF) approved structure, the project remained stalled for two years and an additional interest of around INR1,200 crore was accumulated, and hence release of working capital for the project needs to be resolved on priority," the filing, as cited by ET Now, had added. Meanwhile, Lavasa had reported a net profit of INR269 crore on the back of INR609 crore in revenues in FY17, ET Now adds. Lavasa Corporation Limited develops and manages a hill city in India. Its portfolio includes R&D and training centers, IT and biotech industry, KPOs and those related to art, fashion, and animation companies; hospitality, tourism, health, education, and IT and ITES industries; lakeside apartments, villas, rental housing, and retiree housing; and studio apartments, starter homes, and workforce apartments. M P BOARD: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M.P. Board and Paper Mills Private Limited's (MPBPPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Fund-based limits migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR4 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Sept. 2, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1962 as a partnership firm by Shri Jagmohandas U. Kothari and Shri Ashok Kothari, MPBPPL manufactures kraft paper from recycled waste paper. MPBPPL's 12,900MTPA manufacturing facility is located at Udaigiri Road in Vidisha, Madhya Pradesh. MASTER INDIA: CRISIL Reaffirms 'D' Rating on INR27MM LT Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Master India Brewing Co. (MIBC) for obtaining information through letters and emails dated July 11, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 27.0 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Master India Brewing Co. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Master India Brewing Co. is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. MIBC, set up as a partnership firm in fiscal 2010, manufactures beer. The firm is promoted by Mr. Deepak Burman, Mr. Jitendra Newatia, Mr. Rajesh Kumar Jalan, and Master (India) Brewing Co Ltd. MEGHA GUM: CRISIL Reaffirms 'D' Rating on INR15MM Cash Loan ----------------------------------------------------------- CRISIL Ratings has been consistently following up with Megha Gum and Chemicals (MGC) for obtaining information through letters and emails dated July 10, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 3 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Megha Gum and Chemicals. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Megha Gum and Chemicals is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. Set up as a proprietorship firm by Ms. Urmila Goyal, MGC commenced operations in 2005 by setting up a guar gum refining unit in Hisar, Haryana. Its cotton ginning and cotton oil refining unit began operations in November 2012. MGC is managed by Mr. Rajinder Goyal and Mr. Anuj Goyal. MODULUS COSMETICS: Ind-Ra Migrates BB+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Modulus Cosmetics' (MC) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR131.244 mil. Fund-based working capital limit migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR6.3 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE MC was established in 2010 by Rajan Dhir. It manufactures soap noodles for some large FMCG companies. Its daily production capacity is 200 metric tons. NANU RAM GOYAL: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nanu Ram Goyal & Co.'s Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument- wise rating actions are: -- INR47.5 mil. Fund based working capital limit migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR200 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 12, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2002, Nanu Ram Goyal & Co. is a proprietorship firm managed by Dwarka Dass Goyal of New Delhi. The entity is a Delhi- based contractor for residential projects. NORTELS SERVICE: CRISIL Reaffirms 'B-' Rating on INR5.7MM Loan -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Nortels Service Apartments Private Limited (NSAPL) for obtaining information through letters and emails dated July 17, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 5.7 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 4.3 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Nortels Service Apartments Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Nortels Service Apartments Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B- /Stable'. NSAPL, incorporated in 2000, manages service apartments in Chennai. The company is promoted by Mr. Sri Krishnan, Mr. Sunil Nair, Mr. A Murugappan, Mr. S Narayanan, and Mr. Lui Ki. NORTHERN MOTORS: CRISIL Reaffirms 'B' Rating on INR6.91MM Loan -------------------------------------------------------------- CRISIL's rating on long-term bank facility of Northern Motors Private Limited (NMPL) continues to reflect the weak financial risk profile, and exposure to intense competition in the auto dealership market. These rating weaknesses are partially offset by the established market position in Ludhiana and Jalandhar, and healthy relationships with principals, Hindustan Motors-Mitsubishi (HMM) and Hyundai Motor India Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.91 CRISIL B/Stable (Reaffirmed) Overdraft 2.60 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 1.49 CRISIL B/Stable (Reaffirmed) Working Capital Term Loan 4.00 CRISIL B/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: Total outside liabilities to tangible networth ratio was high around 3.12 times as on March 31, 2017. Debt protection metrics remained weak, with interest coverage ratio of 1.05 times and net cash accrual to total debt ratio of 0.01 time in fiscal 2017. * Modest scale of operations: Revenue was modest at INR83.23 crore in fiscal 2017, following a decline in sales from HMM's dealership. Operating margin was low around 3.4% due to limited value addition, given the trading nature of operations. * Intense competition and limited bargaining power with principal: Intense competition in the auto dealership market has kept the scale of operations modest, and limits the bargaining power with HMM and HMIL. The principal also faces competitive pressures from other four-wheeler vehicle manufacturers such as Maruti Suzuki, Renault, Tata, and Ford. Growing competition has compelled automakers to cut costs, by also reducing their dealer commissions. Strengths * Extensive experience of the promoters: The four decade-long experience of the promoters in the auto dealership business, will continue to support the business risk profile. * Benefits from association with HMIL: Being the second-largest player in the passenger vehicle segment, share of HMIL's vehicles in NMPL's overall sales has been improving. Launch of new vehicles by the principal will further strengthen the company's market position. Outlook: Stable CRISIL believes NMPL will continue to benefit from its established market position and longstanding association with its principals. The financial risk profile is expected to remain weak, owing to low profitability and cash accrual. The outlook may be revised to 'Positive' in case of significant improvement in cash accrual, liquidity and capital structure. The outlook may be revised to 'Negative' if liquidity weakens, most likely due to low cash accrual, significant stretch in the working capital cycle, or any major capital expenditure. NMPL, promoted by Mr. Rajiv Chopra, is an authorised dealer of passenger cars of HMM and HMIL in Punjab. The company operates one showroom for HMIL in Ludhiana and two showrooms for HMM, one each in Jalandhar and Ludhiana. It has been dealing in HMM's cars for six decades. OLIVE TEX: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Olive Tex Silk Mills Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR12.8 mil. Long-term loan migrated to non-cooperating category with IND BB(ISSUER NOT COOPERATING) rating; -- INR343.4 mil. Fund-based facilities migrated to non- cooperating category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR22.5 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Sept. 30, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2007, Mumbai-based Olive Tex Silk Mills manufactures garments at its units in Vapi (Daman and Diu district) and has two parcels of land in Tarapur (Mumbai) for fabric weaving. PIPEFIELD INDIA: CRISIL Lowers Rating on INR15MM Cash Loan to B ---------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Pipefield India Private Limited (PIPL) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Proposed Long Term 5 CRISIL B/Stable (Downgraded Bank Loan Facility from 'CRISIL B+/Stable') Term Loan 11 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects weaker-than-expected operating performance due to nascent stage of operations, resulting in lower-than- expected revenue of INR48.7 crore for fiscal 2017. This, along with weak profitability of 1.6%, led to net cash accrual of negative INR1.73 crore. However, with expected improvement in operating performance, cash accrual is expected to be around INR1.5 crore over the medium term and will be just adequate to meet debt obligation of around INR1.5 crore. Also, liquidity is partially supported by estimated unsecured loans of INR7.01 crore (as on March 31, 2017) from promoters. The downgrade also reflects deterioration in financial risk profile with weaker-than-expected networth and gearing at INR3.90 crore and 7.5 times, respectively, as on March 31, 2017. Moreover, debt protection metrics remained subdued and lower than expected, with interest coverage and net cash accrual to total debt ratios of 0.2 time and negative 0.06 time, respectively, for fiscal 2017. The rating reflects PIPL's modest scale of operations due to nascent stage, exposure to intense competition and geographical concentration in revenue, and below-average financial risk profile because of small networth, high gearing, and weak debt protection metrics. These weaknesses are partially offset by the established market position of the Pipefield group to which PIPL belongs, and extensive experience of promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and exposure to intense competition: Turnover remained small at INR48.7 crore in fiscal 2017 due to first full year of operations. This is compounded by intense competition and geographical concentration in revenue. * Below-average financial risk profile: Networth was small at INR3.9 crore as on March 31, 2017, on account of nascent stage of operations and debt-funded capital expenditure to install plant. Consequently, gearing was high at 7.5 times, and is expected to remain leveraged with increase in scale of operations. Modest profitability and high interest burden are likely to continue to keep debt protection metrics muted over the medium term. Despite expected improvement due to ramp up in scale and loan repayment, metrics will remain below average over the medium term. Strengths * Established market position and extensive experience of promoters: The Pipefield group has an established presence in Kerala with a wide network of outlets, in addition to a chain of dealers and sub-dealers. The group provides end-to-end solutions in the roofing industry and has developed healthy relationship with raw material suppliers. The company's promoters have three decades of experience in trading in roofing equipment and have built healthy relationship with both suppliers and customers. Outlook: Stable CRISIL believes PIPL will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' if significant ramp up in operations or operating margin results in higher-than-expected cash accrual and hence better liquidity. The outlook may be revised to 'Negative' if substantially weak cash accrual due to lower-than-expected operational performance further weakens financial risk profile, particularly liquidity. Incorporated in 2013 and promoted by Mr. P Bhaskaran and family, PIPL set up new electric resistance-welded steel pipe production unit in Palakkad, Kerala. Head office is in Kochi. The company started commercial operations in 2016. PIPL reported a profit after tax (PAT) of negative INR2.7 crore on an operating income of INR48.70 crores for fiscal 2017, against a PAT of negative INR0.04 crore on an operating income of INR3.70 crore for fiscal 2016. POPULAR MOTOR: CRISIL Reaffirms B+ Rating on INR15MM Loan --------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank loan facilities of Popular Motor World Private Limited (PMW). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 0.5 CRISIL B+/Stable (Reaffirmed) Inventory Funding Facility 15.0 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's below-average financial risk profile marked by high total outside liabilities to tangible networth (TOLTNW) and modest debt protection metrics due to large working capital debt. However, business risk profile remains above-average with operating income at INR679 crore in fiscal 2017, up 22% over the previous fiscal, though operating margin declined due to higher discounts. Operating margin is expected at 3% over the medium term. Analytical Approach CRISIL had earlier treated unsecured loan as neither debt nor equity. However, the loan has now been treated as debt as it is likely to be withdrawn in the near term. Key Rating Drivers & Detailed Description Weaknesses * Below-average financial risk profile: PMW had a high TOLTNW ratio of 14.31 times as on March 31, 2017, because of large working capital debt. Modest operating profitability and large debt resulted in weak interest coverage of 1.28 times in fiscal 2017. * Vulnerability of business to economic cycles and to intense competition in the automotive dealership industry, and low bargaining power with principal supplier: PMW's business growth is vulnerable to economic cycles and is directly linked to the performance of its principal supplier Hyundai Motor India Ltd (Hyundai). PMW has to compete with other dealers of Hyundai, as well as of other car brands. Furthermore, it has limited bargaining power with its supplier, and its purchases are primarily against advance payments. Strength * Extensive experience of promoters in the automotive dealership business: PMW belongs to the Popular group, which has dealerships of various brands across South India. PMW is an authorised and a leading dealer of Hyundai in Kerala, and has 25 showrooms and 33 service centers in the state. PMW will benefit from its promoters' extensive industry experience and their ability to bring in funds when needed. Outlook: Stable CRISIL believes PMW will benefit from its established position as a dealer of Hyundai's vehicles in Kerala. The outlook may be revised to 'Positive' if cash accrual increases, driven by higher revenue and profitability, while working capital requirement is efficient, leading to a better financial risk profile. The outlook may be revised to 'Negative' if the company undertakes larger- than-expected, debt-funded capital expenditure, or if its revenue or profitability declines steeply, leading to deterioration in the financial risk profile. PMW, incorporated in 2004, is a dealer of Hyundai's cars and spares, and provides vehicle servicing services in south and central Kerala. The company has 25 showrooms and 33 service centers. R.A. MOTORS: CRISIL Reaffirms 'B+' Rating on INR10MM Loan --------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank loan facilities of R.A. Motors Private Limited (RAMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7.5 CRISIL B+/Stable (Reaffirmed) Channel Financing 7.5 CRISIL B+/Stable (Reaffirmed) Corporate Loan 5.0 CRISIL B+/Stable (Reaffirmed) Electronic Dealer Financing Scheme (e-DFS) 10.0 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's weak financial risk profile because of high gearing, susceptibility to cyclicality in automotive (auto) demand, and limited bargaining power with the principal supplier, and exposure to intense competition in the auto dealership market. These weaknesses are partially offset by the extensive industry experience of the promoter, and established relationship with Tata Motors Ltd (TML). Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: RAMPL's weak financial risk profile is indicated by high gearing of 5.72 times as on March 31, 2017, and muted debt protection metrics, reflected in interest coverage and net cash accrual to total debt ratios of 1.3 times and 0.02 time, respectively, in fiscal 2017. * Susceptibility to cyclicality in auto demand, limited bargaining power with the principal supplier, and exposure to intense competition in the auto dealership market: The company faces competition from other dealers of TML and other commercial vehicle (CV) manufacturers. The Indian CV industry, though marked by moderate competition because of limited number of players, is expected to see increasing competition over the medium term because of the entry of a large number of new players. Additionally, the company has limited bargaining power with the principal reflected in negligible credit period. Strengths * Extensive industry experience of the promoter, and established relationship with TML: RAMPL's operations are managed by its promoter, Mr. Ajay Chaturvedi, who is a first-generation entrepreneur and has experience of more than 15 years in the auto dealership business. RAMPL got its first dealership for TML's CVs in 2002. Because of its satisfactory performance, the company got three more dealerships between 2005 and 2013. Outlook: Stable CRISIL believes RAMPL will continue to benefit from its established market position as a dealer of TML's CVs. The outlook may be revised to 'Positive' if a substantial equity infusion or significant increase in revenue and profitability leads to better cash accrual, and hence, to an improvement in capital structure and debt protection metrics. The outlook may be revised to 'Negative' if the financial risk profile deteriorates because of large debt-funded capital expenditure or substantial working capital requirement. RAMPL is an authorised dealer for TML's CVs with four showrooms and nine sales offices covering Etah, Moradabad, Badaun, Kasganj, Sambhal, Amroha, and Bareilly, in Uttar Pradesh. The company deals in the entire range of TML's CVs. RATNAGIRI CERAMICS: Ind-Ra Withdraws B+ Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Ratnagiri Ceramics Private Limited's (RCPL) Long-Term Issuer Rating of 'IND B+'. The Outlook was Stable. The instrument-wise rating actions are: -- INR72.20 mil. Fund-based working capital limits withdrawn with WD rating; -- INR26.20 mil. Non-fund-based working capital limits withdrawn with WD rating; and -- INR11.60 mil. Proposed fund-based working capital limits withdrawn with WD rating. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-dues certificate from the lender, mentioning that the bank loans have been repaid in full. This is consistent with the Securities and Exchange Board of India's circular dated 31 March 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for RCPL. COMPANY PROFILE Formed in 2000, RCPL is engaged in the manufacturing and trading of designer ceramic tiles. It markets the tiles under own brands. It is promoted by Mr. Sanjeev Bhaskar, Ms Savita Bhaskar and Mr. Aditya Bhaskar. SARASWATI MOTORS: Ind-Ra Moves B Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Saraswati Motors' (Saraswati) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR25 mil. Fund-based limits migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating; and -- INR35 mil. Long-term loans migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 20, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Saraswati was established in 2014 as a partnership entity by Arun Kumar Tiwary and Rewati Raman. SRI LAKSHMI: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sri Lakshmi Motors Service Pvt. Ltd.'s (SLMSPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The ratings will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR35 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; -- INR7.70 mil. Long-term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR86 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Feb. 9, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SLMSPL was incorporated in 2002 and was initially an authorised service provider for Eicher trucks and buses manufactured by VE Commercial Vehicle Ltd. The company now concentrates on the sales of Eicher buses and trucks. M Shankar is the managing director of the company. TC Mariah and Renuka Shankar are the other directors. SHEYN INTERNATIONAL: CRISIL Reaffirms B- Rating on INR7.25MM Loan ----------------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the long-term bank facility of Sheyn International School (SIS) at 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 7.25 CRISIL B-/Stable (Reaffirmed; Removed from 'Issuer Not Cooperating') The rating reflects SIS's weak financial risk profile because of modest capital structure, high gearing and low debt protection metrics and net loss incurred in the last two years (fiscal 2016 and fiscal 2017), low occupancy resulting in small scale of operation and vulnerability to regulatory risks associated with educational institutions. These weaknesses are partially offset by the trustees' extensive experience in the education sector. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: Financial risk profile continued to remain constrained on account of net loss incurred by the trust in fiscal 2016 and fiscal 2017. The same resulted in erosion of networth and adversely impacted the capital structure. Small scale of operation and high capital charges also resulted in modest interest coverage of around 0.65 times in fiscal 2017. * Low occupancy resulted in small scale of operation: The school started operation from fiscal 2014, with fiscal 2015 as the first year of full operation for the school. The school has a total capacity of 2600 students, which is currently occupied at a low level of around 25%. Low occupancy limits the scale of operation of the trust and resulted in low absorption of fixed overheads. * Vulnerability to regulatory risks associated with educational institutions: Fees to be charged from students and any increase in fee structure is governed by regulatory agencies. This limits SIS's financial flexibility to raise additional funds in case of weak liquidity. The trust also has to obtain annual regulatory approvals from various bodies. Strengths * Extensive experience of the trustee: The trustees' decade-long experience in operating schools in Jamshedpur has helped the trust build goodwill. This is expected to help the school in ramp up of operation in the medium term. Outlook: Stable CRISIL believes SIS will continue to benefit from the extensive experience of its trustees. The outlook may be revised to 'Positive' if increase in occupancy levels lead to higher operating income and better absorption in fixed overheads resulting in improvement in profitability. The outlook may be revised to 'Negative' if occupancy does not improve, or any large debt-funded capital expenditure weakens financial risk profile, particularly liquidity. SIS was set up in 2013 as a unit of Shaurya Jyoti Foundation (also set up in 2013); it runs two schools, one each in Mango and Kandra, both in Jamshedpur (Jharkhand). Mr. Avinash Singh manages the operations. SHREE NATH: CRISIL Raises Rating on INR6.5MM Cash Loan to B+ ------------------------------------------------------------ CRISIL Ratings has upgraded its rating on the long-term bank facilities of Shree Nath Ji Enterprises - Nissing (SNJE) to 'CRISIL B+/Stable' from 'CRISIL B/Stable' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Long Term Loan 2.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Warehouse Receipts 3.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects CRISIL's belief that SNJE's business and financial risk profile is expected to progressively improve over the medium term. In fiscal 2017, net sales increased to INR44.7 crores from INR42.5 crores in previous fiscal. During April-June 2017, firm has achieved estimated operating income of INR20.5 crores and is expected to reach INR50 crores in fiscal 2018. The rating reflects the firm's modest scale of operations in a highly fragmented rice industry; and modest networth and high leverage. These rating weaknesses are partially offset by the extensive experience of the partners and healthy growth prospects. Analytical Approach Unsecured loans from partners of INR8.3 cores as on March 31, 2017 (Rs. 7.9 crores a year ago) has been treated as neither debt nor equity as they are subordinated to bank debt and are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in a highly fragmented rice industry: SNJE has a modest scale of operations as reflected by revenue of INR44.7 crores in fiscal 2017 as firm operates in highly fragmented rice industry which has low capital intensity and limited value addition resulting in low entry barriers and weak bargaining power. CRISIL believes the scale of operations will improve but remain modest over the medium term. * Modest networth and high leverage: Networth was INR1.3 crores as on March 31, 2017, on account of modest accretion to reserves. Total outside liabilities to adjusted networth (TOLANW) over the three years ended March 31, 2017 was 7.5-14.5 times and is expected to remain high over the medium term. Strengths * Extensive experience of the partners: Over two decades of experience in the rice-processing business, have helped partners gain a sound understanding of the market dynamics and have established relations with its customers and suppliers. Benefits from partners' extensive experience are expected to continue over the medium term. * Healthy growth prospects: India is the largest producer of basmati rice, accounting for 70% of the world's production. The Indian basmati rice industry is expected to grow substantially over the medium term driven by steady demand from the export and domestic markets. As per industry players, growth in demand for basmati rice is expected to be around 20%per annum, driven by increased demand from the Gulf countries and higher domestic consumption supported by increasing spending power of the middle- income group. Outlook: Stable CRISIL believes SNJE will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' in case of improvement in the financial risk profile, most likely through capital infusion or a substantial increase in cash accrual arising from a significant increase in scale of operations and sustained or higher profitability margins. Conversely, the outlook may be revised to 'Negative' if the financial risk profile weakens further, most likely because of low cash accrual, large, debt-funded capital expenditure, or significant increase in inventory and bank borrowings. SNJE was established in 2013 as a partnership firm by Mr. Gaurav Garg, Mr. Mukesh Garg, Mr. Dharampal Garg, Ms. Suman Garg, and Mr. Ankush Garg. The firm processes and mills rice at its plant at Karnal. SHYAM LEELA: CRISIL Reaffirms B+ Rating on INR7.5MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank loan facility of Shyam Leela Fashion House Private Limited (SLF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7.5 CRISIL B+/Stable (Reaffirmed) The rating reflects its small scale and working capital intensive nature of operations in a highly-fragmented textile industry with low operating margin due to trading nature of business. These weaknesses are partially offset by promoters' extensive experience and average financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Small and working capital intensive nature of operations, in a highly competitive and fragmented industry: Small scale, as reflected in sales of INR59.60 crore for fiscal 2017, prevents the company from benefits of economies of scale and bargaining power with customers and suppliers. Furthermore, the company primarily focuses on low-cost items, which fetch low margins and generally rely on volume. The operations are working capital intensive with GCA of 169 days in fiscal 2017 driven by debtors and inventory of 100 and 64 days, respectively. * Low operating margin due to trading nature of business and vulnerability to volatility in input prices: SLF trades in sarees and, suiting and shirting materials. The company procures these items from manufacturers in many cities in Western India such as Surat and Bhilwada (Rajasthan). These are then sold to retailers and wholesalers in Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand. Due to low value addition in the trading business, SLF had a low operating margin estimated at 3.9% in fiscal 2017. Strengths * Promoters' extensive experience: SLF's promoters, the Khatri family, have been in the trading business since 1965 through the firm, Shyam Saree Center. SLF, located at the wholesale mandi at Kanpur, has built strong relationships with its suppliers, as reflected in long credit period it gets from them. Also, it has developed a strong customer base of retailers and wholesalers in Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand. The large number of retailers moderates the credit risk associated with them. * Moderate financial risk profile: Financial risk profile is supported by interest coverage and net cash accrual to total debt ratios of 1.9 time and 0.11 time, respectively, in fiscal 2017. Furthermore, gearing was moderate at 1.16 times as on March 31, 2017. Outlook: Stable CRISIL believes SLF will continue to benefit over the medium term from its promoters' extensive experience. The outlook may be revised to 'Positive' if improvement in sales and profitability, leads to more than expected cash accruals. The outlook may be revised to 'Negative' in case of less-than-expected cash accrual, or larger-than-expected working capital borrowings or capital expenditure. Promoted by the Khatri family, SLF is a wholesaler of sarees, cloth materials, and handloom items in Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand. Initially set up as a firm, the entity was reconstituted as a private limited company in April 2010. SLF mainly operates in the wholesale market in Kanpur. SHYAMA AGRO: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shyama Agro Foods & Exports Pvt Ltd's (SAFEPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The ratings will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR45 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR37.76 mil. Long term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Aug. 19, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SAFEPL was established in 2009 to set up a 120 tonne per day roller flour mill in Muzaffarpur, Bihar. SAFEPL is promoted by Mr. Kesav Nanda. The company operates at 60% of its production capacity. Mr Kesav Nanda, Mrs Jyoti Mala, Mr. Shankar Prasad Sah and Smt Urmila Kumari are the directors of the company. SMARTCITY KOCHI: NCLAT Quashes Insolvency Order ----------------------------------------------- The Times of India reports that the National Company Law Apex Tribunal (NCLAT) on Oct. 12 quashed an order by the National Company Law Tribunal (NCLT), which passed a verdict in an insolvency case filed by a private firm against SmartCity authorities. According to the report, the NCLAT verdict has come as a breather for the SmartCity project as many of its major functions, including the conduct of its director board, have been stalled following the NCLT order. At the same time, the apex body's order has come as a jolt to the SmartCity authorities who had reached at an out-of-the-court settlement with the Synergy Property Development Services Private Ltd, the project management company (PMC), which filed the insolvency suit, TOI relates. TOI says the NCLAT quashed the NCLT order citing that the insolvency suit was filed without following proper procedures. The NCLAT didn't pay heed to the company's argument that a settlement has been reached between the parties. The apex body of company law disputes also stated that the NCLT shouldn't approve the company's plea as a dispute was pending between the parties. As per rules, an operational creditor (the PMC firm in this case) can file an insolvency case against a corporate debtor (SmartCity) provided there is no dispute, TOI notes. The dispute between the SmartCity authorities and the PMC firm started over the disbursal of funds last year. In 2015, allegations were levelled that some of officials of the SmartCity project were involved in financial irregularities in the purchase of materials like iron rods for the construction of the project building with the knowledge of the PMC, TOI relays. Subsequently, the SmartCity authorities, led by the then managing director Baju George turned down the company's demand for INR1.5 crore as consultancy fees. SmartCity (Kochi) Infrastructure is engaged in providing infrastructure services. SUJAI SHIPPING: CRISIL Assigns B+ Rating to INR9.72MM LT Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating on the long-term bank facility of Sujai Shipping And Logistics (Sujai). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit .28 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 9.72 CRISIL B+/Stable The rating reflects the modest scale of operations with customer concentration in revenue. This rating weakness is partially offset by extensive experience of the partner in the logistics segment, and the firm's moderate financial risk profile. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations and customer concentration in revenue: Business risk profile remains constrained by modest scale of operations, with revenue of INR4.2 crore during fiscal 2017. The firm is also vulnerable to risks related to customer concentration, with Avanti Frozen Foods Pvt Ltd (Avanti) accounting for almost 90% revenue. Any reduction in offtake, could result in muted revenue growth. Strengths * Extensive experience of partners in the logistics segment: The two decade-long experience of the partner, Mr. Kishore, through another firm, and established relationship with key customer, Avanti, will continue to support the business risk profile. The firm owns 10 container lorries, which are used for transportation. * Moderate financial risk profile: Financial risk profile is marked by a small networth and low gearing of INR0.58 crore and 0.79 time, respectively, as on March 31, 2017. Debt protection metrics are healthy, with net cash accrual to total debt and interest coverage ratios at 0.95 time and 28.45 times respectively, for fiscal 2017. Outlook: Stable CRISIL believes Sujai will continue to benefit from the extensive experience of its partners. The outlook may be revised to 'Positive' if sustained growth in revenue and stable operating margin, leads to large cash accrual, and the capital structure remains stable. The outlook may be revised to 'Negative' if low cash accrual, poor working capital management, or substantial debt-funded capital expenditure, weakens the financial risk profile. Sujai, set up at Vishakapattinam (Andhra Pradesh) in 2008, is a licensed custom house agent, offering logistics and other related services. Mr. M K Kishore and his wife are partners in the firm. TA HYDRAULICS: CRISIL Assigns 'B' Rating to INR6MM Cash Loan ------------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of TA Hydraulics Private Limited (TAH). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 3 CRISIL B/Stable Proposed Bank Guarantee 2 CRISIL A4 Bank Guarantee 1 CRISIL A4 Cash Credit 6 CRISIL B/Stable The ratings reflect the company's small scale of operations, below-average financial risk profile, large working capital requirement, and volatility in sales due to tender-based business. These weaknesses are partially offset by the extensive experience of its promoters and their funding support. Analytical Approach Unsecured loans of INR4.66 crore from promoters as on March 31, 2017, have been considered as neither debt nor equity as these carry lower interest rate and are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations: With revenue of INR7 crore and INR6.7 crore in fiscals 2017 and 2016, respectively, scale remains modest. * Below-average financial risk profile and working capital- intensive operations: Networth and gearing were weak at INR3.2 crore and 2.59 times, respectively, as on March 31, 2017. Also, gross current assets were high at 757 days due to sizeable inventory and stretched receivables of 129 days and 778 days, respectively. * Tender-based business leading to fluctuations in revenue: Since half of total sales are tender-based, revenue and profitability remain volatile. Strengths * Experience and funding of promoters: The promoters have been manufacturing and installing hydraulic equipment for around 20 years and have also extended need-based and timely funding to support business. Outlook: Stable CRISIL believes TAH will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' if significant ramp up in operations and profitability leads to high cash accrual. The outlook may be revised to 'Negative' in case of slowdown in revenue or margins or large, debt-funded capital expenditure. Incorporated in 1996 and promoted by Mr. Abhinav Bisrya and Mr. H S Rathi, TAH designs, manufactures, and installs hydraulic equipment for government agencies in the defence and aerospace fields. It also contract-manufactures for Sweden-based engineering services and products provider, Sandwic Group. TAH's facility is in Balanagar Industrial area in Hyderabad. THANGAMMAN EXPORTS: CRISIL Assigns C Rating to INR1.7MM LT Loan --------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Thangamman Exports (TE). The ratings reflect a modest scale of operations and a below average financial risk profile. These rating weaknesses are partially offset by the extensive experience of the proprietor in the readymade garments industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Short Term Bank Facility 1 CRISIL A4 Proposed Long Term Bank Loan Facility 1.7 CRISIL C Packing Credit 3 CRISIL A4 Bills Receivable Discounting 1 CRISIL A4 Long Term Loan 0.3 CRISIL C Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Revenue was modest at around INR14 crore in fiscal 2017. Intense competition from small and mid-sized players in the garment export industry limits negotiating power with customers and suppliers. * Weak financial risk profile: The networth was INR2.3 crore and gearing 2.3 times, as on March 31, 2017. The capital structure is expected to remain weak on account of modest accretion to reserves. Liquidity is stretched on account of insufficient cash accrual to meet repayment obligation. Strengths * Extensive industry experience of the proprietor: The proprietor has more than three decades of experience in the garment business. This has resulted in an established position in the export market and a healthy relationship with customers and suppliers. TE was established in 1985 by Mr. Chandrasekaran as a proprietorship firm in Tiruppur, Tamil Nadu. The firm manufactures and exports readymade garments. It undertakes knitting, cutting, stitching, and packaging of garments at its unit in Tiruppur. TIRUMALA COMPRINTS: CRISIL Lowers Rating on INR8.25MM Loan to D --------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Tirumala Comprints Limited (TCL) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8.25 CRISIL D (Downgraded from 'CRISIL B+/Stable') Term Loan 1.75 CRISIL D (Downgraded from 'CRISIL B+/Stable') The rating downgrade reflects delays in debt servicing by the company. The delays have been caused by weak liquidity. The rating also reflects working capital intensive and modest scale of operations in an intensely competitive industry. These weaknesses are partially offset by the extensive entrepreneurial experience of the promoters. Key Rating Drivers & Detailed Description Weakness * Working capital intensive operations: TCL has working-capital- intensive operations, as reflected in the company's high gross current assets (GCA) of around 133 days as on March 31, 2017. * Modest scale of operations in intensely competitive industry TCL has a modest scale of operation in the offset printing and packaging industry (which is intensely competitive), as reflected in its revenues of around INR37 crores in fiscal 2017. Strengths * Extensive industry experience of promoter: TCL derives significant benefits from its promoter's extensive experience in the printing industry. Its promoter, Mr. M Jayathirth, has domain experience of more than two decades. Supported by its promoter's experience, the company has developed established relations with customers and suppliers over the years. TCL was originally incorporated as a private limited company in 1989, promoted by Mr. M Jayathirth; it was reconstituted as a public limited company in 2008. TCL undertakes regular offset and ultra-violet offset printing of packaging materials made of paper and paperboards; its product portfolio mainly includes cartons and leaflets. The company is based in Hyderabad (Telangana). UD SOLUTION: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated UD Solution Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Fund-based Limits migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; and -- INR140 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Sept. 22, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2014, UD Solution started its commercial operations in November 2014 as a national distributor of Gionee mobile phones. It is managed by Mr. Umang Dokania and family and has its registered office in Raniganj, West Bengal. UNIQUE ORGANICS: CRISIL Lowers Rating on INR10MM Loan to B+ ----------------------------------------------------------- CRISIL Ratings has downgraded its ratings on bank facilities of Unique Organics Limited (UOL) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+.' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Foreign Bill Purchase 12 CRISIL A4 (Downgraded from 'CRISIL A4+') Foreign Exchange 0.3 CRISIL A4 (Downgraded from Forward 'CRISIL A4+') Packing Credit 4.2 CRISIL A4 (Downgraded from 'CRISIL A4+') Pledge Loan 10.0 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects CRISIL's expectation of subdued business performance in the medium term, in sharp contrast to the previous estimate. This is led by a 75% estimated decline in revenue, following a shortage of major crops (yellow corn and rapeseed). Rapeseed crop underwent significant loss during the harvest season, while drought conditions also led to a drop in maize production. Going forward, increase in crop output should help sales improve (around INR27.16 crore reported till September 20, 2017). Revenue is expected to rebound, further aided by the company's entry into manufacture of cattle feed. Operating margin was negative for fiscal 2017, due to high fixed cost, and a sharp decline in turnover. The operating margin for the first quarter of fiscal 2018, stood at -0.28%. The rating downgrade also factors in the stretched working capital cycle, mainly due to receivables outstanding for more than six months estimated at INR11 crore as on March 31, 2017. Key Rating Drivers & Detailed Description Weaknesses * Intense competition, constraining profitability: Intense competition from several unorganised players in the animal feed exports business, limits the negotiating power with customers, and prevents complete passage of a hike in raw material cost. Operating margin remained negative in fiscal 2017, but is likely to range from 2%-2.5% over the medium term, aided by recovery in revenue. * Geographical concentration in revenue: UOL derives 60-65% of its revenue from Vietnam, leading to significant geographical concentration. Thus, any adverse change in government policies or an economic downturn affecting the demand scenario in export markets, can negatively impact growth in revenue and margin. Strengths * Extensive experience of the promoters in agro commodities exports: Backed by their experience in trading in animal feed stock and spices, the promoters started exporting agricultural commodities in 1993. Over the years, the company has established strong relationships with suppliers and customers, and has diversified its product portfolio to include a variety of animal feeds such as maize, soya de-oiled cakes (DOC), and rapeseed DOC. These factors have helped UOL export its products regularly, depending on the demand-supply scenario and government regulations in overseas markets. * Average financial risk profile: The financial risk profile is marked by a healthy capital structure, though constrained by weak debt protection metrics due to losses. However, financial metrics may improve over the medium term, following the expected rebound in revenue, and the absence of any major capital expenditure plans. Outlook: Stable CRISIL believes UOL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if the company reports significant revenue growth and sustained profitability, leading to higher cash accrual, and better working capital management. The outlook may be revised to 'Negative' a stretch in the working capital cycle or decline in operating margin weakens the financial risk profile, particularly liquidity. UOL was set up by the promoter Mr. JP Kanodia and his family members in 1993. The company exports various animal feeds, such as maize, soya and rapeseed DOC, and also processes various spices, such as chilly, turmeric, and cumin. VEGA INFRASTRUCTURE: Ind-Ra Moves BB- Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vega Infrastructure's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR147.50 mil. Fund-based working capital limit migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on Oct. 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Vega Infrastructure was established in 2014 as a proprietorship concern. It has a shopping mall under the name City Centre Mall in Pathankot and is engaged in providing rental space for showroom, retail shops and offices. VERA INDUSTRIES: CRISIL Reaffirms B Rating on INR7.50MM Cash Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Vera Industries (VI) for obtaining information through letters and emails dated July 10, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. CRISIL gave these ratings: Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7.50 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term .25 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Rupee Term Loan .75 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Vera Industries. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Vera Industries is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. VI, set up in 2014 and based in Punjab, manufactures cattle feed. Its operations are managed by Mr. Rakesh Kumar and his father Mr. Vijay Kumar. Its manufacturing facility is at Muktsar in Punjab. The firm started operations in October 2014. VISHAL WHEELERS: CRISIL Reaffirms 'B' Rating on INR6.10MM Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Vishal Wheelers Private Limited (VWPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .25 CRISIL A4 (Reaffirmed) Cash Credit 6.10 CRISIL B/Stable (Reaffirmed) Line of Credit 2.35 CRISIL B/Stable (Reaffirmed) Term Loan 3.60 CRISIL B/Stable (Reaffirmed) The ratings reflect VWPL's modest scale of operations and below- average financial risk profile because of weak debt protection metrics, and susceptibility to intense competition in the automobile industry. These weaknesses are mitigated by the extensive experience of its promoters and their funding support. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and exposure to intense competition: Scale of operations is modest with revenue of INR22.32 crore for fiscal 2017. Intense competition due to the presence of several small regional and large players in the segment limits the pricing flexibility and power with the principal. * Below-average financial risk profile: Financial-risk profile is below average with small networth of INR2.82 crore, high total outside liabilities to tangible networth (TOLTNW) of 5.27 times as on March 31, 2017, and weak debt protection metrics with interest coverage and net cash accrual to total debt ratio of 1.26 and 0.04 times, respectively, for fiscal 2017. Strengths * Extensive experience of the promoters: The promoters' 15 years of experience in the industry and healthy relationship with its principals Maruti Suzuki India Limited for service station and Skoda India Pvt Ltd for an authorised dealership of sale service and spares should support business. * Funding support from promoters: The promoters extended unsecured loans in the past to support the repayment obligations, and committed to infuse need based support over the medium term. Outlook: Stable CRISIL believes VWPL will maintain its stable business risk profile backed by the extensive experience of its promoters. The outlook may be revised to 'Positive' if increase in scale of operations and profitability resulting in high cash accrual and effective working capital management strengthen liquidity. The outlook may be revised to 'Negative' if decline in scale of operations impacts cash accrual adversely, or stretch in working capital cycle or any debt-funded capital expenditure weakens liquidity. Incorporated in 2007, VWPL, promoted by Mr. Amit Singh and Mr. Vishal Singh, is an authorised service centre of Maruti Suzuki India Ltd in Unnao (Uttar Pradesh). In 2009, the promoters started Vishal Cars (a sub division of VWPL) that operates an authorised dealership of sales, service and spares of Skoda India Pvt Ltd in Kanpur and Lucknow districts of Uttar Pradesh. YASH ENTERPRISES: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank facilities of Yash Enterprises (YE) at 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8 CRISIL A4 (Reaffirmed) Cash Credit 5 CRISIL B+/Stable (Reaffirmed) The ratings reflect an average financial risk profile because of a small networth, high gearing, and weak debt protection metrics. The ratings also factor in geographical concentration in revenue and small scale in the fragmented civil construction industry. These weaknesses are partially offset by healthy unexecuted orders and partners' extensive experience. Key Rating Drivers & Detailed Description Weakness * Modest scale: Turnover posted modest growth of 2.5% to INR16.4 crore in fiscal 2017. The trend is expected to continue over the medium term. * Concentration in revenue: YE generates most of its revenue from undertaking civil construction for municipal and government bodies, leading to concentration in revenue. Strength * Partners extensive experience: The partners' extensive experience in the civil construction industry should continue to support the business risk profile. Outlook: Stable CRISIL believes YE will continue to benefit over the medium term from the partners' extensive experience. The outlook may be revised to 'Positive' in case of substantial growth in revenue and cash accrual, along with better working capital management. The outlook may be revised to 'Negative' if cash accrual, financial risk profile, and liquidity weaken because of a steep decline in revenue or profitability, or capital withdrawal. YE was established by Mr. Vipul C Shah as a proprietorship firm in Mumbai in 1999. In 2009, the firm was reconstituted as a partnership concern, with Mr. Shah and Ms. Chandrika Vipul Shah as partners. It undertakes civil construction and interior work for the governments of Maharashtra and Gujarat. ================= S I N G A P O R E ================= ASL MARINE: Allays Auditor's Insolvency Concerns ------------------------------------------------ Seatrade Maritime News reports that beleaguered ASL Marine has updated shareholders that its bank creditors have continued to lend their support despite the breach of one covenant, and sought to allay an insolvency concern raised in an auditor's report. A stark outlook was expressed by auditor Ernst and Young that the OSV builder will face insolvency within the next 12 months in the event that the banks demand payments due from the commencement of the drawdown of a five-year club term loan facility from DBS Bank, United Overseas Bank (UOB) and Oversea-Chinese Banking Corp (OCBC), according to Seatrade. Due to the breach of one covenant as at June 30, 2017, the five-year loan technically becomes due and payable, the report says. ASL Marine, however, clarified that the company has in fact received confirmation from its lenders that they are willing to waive, for one instance only, the breach of the covenant at the request of the group, subsequent to the financial year ended June 30, 2017, Seatrade Maritime. "As the waiver was obtained subsequent to June 30, 2017, the group did not have an unconditional right to defer its settlement for at least 12 months after June 30, 2017," ASL Marine stated. According to Seatrade, the company explained that lenders have no intention to direct the facility agent to issue a default declaration or in respect of the breach, cancel or require an immediate repayment of the facility for the 12 months from Oct. 4, 2017. For its financial year ended 2017, the group's total borrowings amounted to SGD549.5 million ($405.8 million), of which SGD235.75 million was classified as current liabilities, Seatrade discloses. "The group's loans and borrowings that are due for repayment in the next 12 months exceed its cash and bank balances as at June 30, 2017 of SGD36.14 million," ASL Marine said. Last year, ASL Marine had successfully completed a restructuring involving a rights issue, a club deal, re-profiling, new facilities and deal with the bondholders, Seatrade recalls. "Whilst the restructuring has provided much needed headroom space, ASL Marine and the industry continue to face tough and very tough conditions," the company, as cited by Seatrade, said. "This is evident by the fact that of the SGD71.7 million loss (in FY2017), 50% of the loss of SGD53.9 million arose from impairment losses, which in turn were largely due to falling value of vessels held as fixed assets and inventories. "A further SGD18.4 million or about 26% was due to provision on receivables. In other words, 76% of the loss was essentially due to factors the company had little or no control over," ASL Marine said. Headquartered in Singapore, ASL Marine Holdings Ltd. -- http://aslmarine.infinitesparks.com/-- provides marine services primarily in the Asia Pacific, South Asia, Europe, Australia, and the Middle East. ********* 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. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2017. 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 Joseph Cardillo at 856-381-8268. *** End of Transmission ***