/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171018.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, October 18, 2017, Vol. 20, No. 207 Headlines A U S T R A L I A ABSINTHESALON PTY: Ferrier Hodgson Appointed as Liquidators BAYSIDE SHEDS: First Creditors' Meeting Set for Oct. 25 BRYNHILD PTY: First Creditors' Meeting Set for Oct. 26 COUNTRY CREDITS: First Creditors' Meeting Set for Oct. 24 DARRYL'S BOBCAT: Second Creditors' Meeting Set for Oct. 24 FERRARI RACING: Second Creditors' Meeting Set for Oct. 23 KELLY LAW: Second Creditors' Meeting Set for Oct. 23 LUDOVICO MEDIA: First Creditors' Meeting Set for Oct. 24 MESOBLAST LIMITED: Proposes to Issue Ordinary Shares & Options PEPPER RESIDENTIAL: Moody's Hikes Rating on Class F Notes to Ba2 QUEENSLAND NICKEL: Palmer Loses Appeal to Stop Liquidators Suit SAFE HOMES: Second Creditors' Meeting Set for Oct. 23 WALLACE2 PTY: First Creditors' Meeting Set for Oct. 23 C H I N A ELION RESOURCES: S&P Assigns B Corp Credit Rating, Outlook Stable ZHONGRONG INT'L: S&P Rates New US$-Denom. Sr. Unsec. Notes 'BB-' I N D I A 4G IDENTITY: CRISIL Reaffirms 'D' Rating on INR35MM Bank Loan BEE KAY: CARE Moves B+ Rating to Issuer Not Cooperating Category CHERAN STEELS: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan CHERAN STEEL ROLLING: CRISIL Reaffirms C Rating on INR5.75M Loan CONTEC SYNDICATE: Ind-Ra Moves BB Rating to Non-Cooperating CORNERVIEW CONSTRUCTIONS: ICRA Ups Rating on INR110cr Loan to B ESSAR STEEL: IRP Seeks Applicants for Resolution Plan by Oct. 23 ESSEL MARKETING: ICRA Moves B Rating to Not Cooperating Category GANESH SAW: CARE Assigns B/A4 Rating to INR2.50cr Bank Loan GOKUL STEELS: CRISIL Reaffirms 'D' Rating on INR6.5MM Cash Loan HANSA METALLICS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating INDIAMCO: CARE Lowers Rating on INR14.50cr ST Loan to D J.P.S. FOUNDATION: CRISIL Reaffirms B+ Rating on INR1MM LT Loan JAGRATI TRADE: CARE Moves B+/A4 Rating to Not Cooperating JYOTI GENERAL: ICRA Moves 'B+' Rating to Not Cooperating Category KALSI BROTHERS: ICRA Moves B+ Rating to Not Cooperating Category KASHIPUR SITARGANJ: Ind-Ra Puts D Loan Rating to Not Cooperating LATA EXPORTS: CARE Lowers Rating on INR7.50cr LT Loan to 'D' LAXMI RICE: ICRA Moves 'B' Rating to Not Cooperating Category LB COTTON: ICRA Moves 'D' Rating to Not Cooperating Category LODHA DEVELOPERS: Fitch Affirms B LT IDR; Outlook Stable MAA VINDHWASINI: CRISIL Reaffirms B+ Rating on INR1MM LT Loan MANISH FLEXIPACK: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan MAXOUT INFRASTRUCTURES: CRISIL Reaffirms D Rating on INR12MM Loan MAP REFOILS: Ind-Ra Affirms 'BB' LT Issuer Rating; Outlook Stable MAYUR CONSTRUCTION: Ind-Ra Migrates B+ Rating to Non-Cooperating MITTAL COT: ICRA Moves 'B' Rating to Not Cooperating Category NEW ASIAN: ICRA Raises Rating on INR26.13cr LT Loan to B P.D. AGRO: CRISIL Reaffirms 'B' Rating on INR8MM Cash Loan PACIFIC GLOBAL: CARE Assigns 'B' Rating to INR19.50cr LT Loan PAL PRATEEK: CRISIL Reaffirms B+ Rating on INR5MM Loan PASHUPATI CASTINGS: CRISIL Reaffirms B+ Rating on INR19.76MM Loan POOJA INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR5MM Loan PRAGANA DANWAR: CRISIL Reaffirms B- Rating on INR6.0MM Term Loan PRAGYA RICE: ICRA Moves 'B+' Rating to Not Cooperating Category PREMIER ALLOYS: CRISIL Assigns 'B' Rating to INR7MM Cash Loan PRIME TECHNOPLAST: Ind-Ra Moves D Rating to Non-Cooperating PUPNEJA RICE: CRISIL Reaffirms D Rating on INR13.15MM Cash Loan RADIANT BIZCOM: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating RANGOTSAV SAREES: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating REGENCY GANGANI: ICRA Lowers Rating on INR49.71cr Loan to D REGENCY YAMUNA: ICRA Lowers Rating on INR21.37cr Loan to 'D' S. A. PLYWOOD: CRISIL Lowers Rating on INR12.50MM Loan to 'D' SATISH STEEL: CRISIL Reaffirms B+ Rating on INR6.5MM Cash Loan SHREE RAJ: CARE Reaffirms B+ Rating on INR5.0cr LT Loan SHREE SITA: CRISIL Reaffirms 'B+' Rating on INR6MM Cash Loan SRIBALAJI HATCHERIES: ICRA Moves C Rating to Not Cooperating SRI MANAKULA: ICRA Moves B+ Rating to Not Cooperating Category SRI SAI SHIVANAGERE: ICRA Moves 'B' Rating to Not Cooperating SUSAAH LABORATORIES: CRISIL Reaffirms B+ Rating on INR4.25MM Loan T.K. TRADERS: CRISIL Reaffirms 'B' Rating on INR1.5MM Cash Loan TANMAY POLYFIMS: ICRA Moves 'B-' Rating to Not Cooperating VINAYAK POLYMERS: CRISIL Reaffirms B+ Rating on INR20MM Loan VIRAJ SPINNERS: CRISIL Raises Rating on INR31.99MM Loan to BB- VISAGE INFRASTRUCTURE: CRISIL Reaffirms B Rating on INR2MM Loan VIZEBH COMPOSITECH: CARE Assigns 'D' Rating to INR15cr LT Loan M A L A Y S I A LION DIVERSIFIED: Contracts Out Mining Work for Lack of Capital PERISAI PETROLEUM: Trading Suspension, Delisting Deferred M O N G O L I A MONGOLIA: Fitch Assigns B- Rating to Proposed USD Bonds N E W Z E A L A N D NOSH GROUP: Creditors Call for Second Probe Into Former Directors - - - - - ================= A U S T R A L I A ================= ABSINTHESALON PTY: Ferrier Hodgson Appointed as Liquidators ----------------------------------------------------------- Robyn Duggan and Morgan Kelly of Ferrier Hodgson were appointed Liquidators of Absinthesalon Pty Ltd and Alexamo Pty Ltd on Oct. 6, 2017. The Liquidators now control the Companies and are assessing their financial position. The Companies are no longer trading. "The Liquidators will be writing to creditors shortly providing further details of their appointment," Ferrier Hodgson said in a statement. Absinthesalon Pty Ltd operated a small bar in Surry Hills and Alexamo Pty Ltd operated an absinthe importing business. BAYSIDE SHEDS: First Creditors' Meeting Set for Oct. 25 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Bayside Sheds Pty Ltd will be held at the offices of PPB Advisory, Level 27, Central Plaza One, 345 Queen Street, in Brisbane, Queensland, on Oct. 25, 2017, at 10:30 a.m. David Webb and Kenneth Whittingham of PPB Advisory were appointed as administrators of Bayside Sheds on Oct. 14, 2017. BRYNHILD PTY: First Creditors' Meeting Set for Oct. 26 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Brynhild Pty. Ltd. will be held at the offices of Veritas Advisory, Level 5, 123 Pitt Street, in Sydney, New South Wales, on Oct. 26, 2017, at 11:30 a.m. Steve Naidenov and David Iannuzzi of Veritas Advisory were appointed as administrators of Brynhild Pty on Oct. 16, 2017. COUNTRY CREDITS: First Creditors' Meeting Set for Oct. 24 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Country Credits Pty Ltd will be held at the offices of Pearce & Heers, Level 12, 127 Creek Street, in Brisbane, Queensland, on Oct. 24, 2017, at 10:00 a.m. Mark William Pearce of Pearce & Heers was appointed as administrator of Country Credits on Oct. 12, 2017. DARRYL'S BOBCAT: Second Creditors' Meeting Set for Oct. 24 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Darryl's Bobcat Pty. Limited has been set for Oct. 24, 2017, at 11:00 a.m., at the offices of PKF, 755 Hunter Street, in Newcastle, West New South Wales. The purpose of the meeting is (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. 23, 2017, at 4:00 p.m. Simon Thorn of PKF was appointed as administrator of Darryl's Bobcat on Sept. 18, 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 is (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. KELLY LAW: Second Creditors' Meeting Set for Oct. 23 ---------------------------------------------------- A second meeting of creditors in the proceedings of Kelly Law Pty Ltd has been set for Oct. 23, 2017, at 3:00 p.m., at the offices of David Clout & Associates, 105A Bowen Street, in Spring Hill, Queensland. The purpose of the meeting is (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. David Lewis Clout and Patricia Talty of David Clout & Associates were appointed as administrators of Kelly Law on Sept. 15, 2017. LUDOVICO MEDIA: First Creditors' Meeting Set for Oct. 24 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Ludovico Media Pty Ltd will be held at the offices of Rodgers Reidy, Level 9, 46 Edward Street, in Brisbane, Queensland, on Oct. 24, 2017, at 11:00 a.m. David James Hambleton and James Marc Imray of Rodgers Reidy were appointed as administrators of Ludovico Media on Oct. 15, 2017. MESOBLAST LIMITED: Proposes to Issue Ordinary Shares & Options -------------------------------------------------------------- Mesoblast Limited intends to issue 158,901 ordinary shares for US$240,000 issue price. The full amount of shares are to be held in voluntary escrow until Oct. 6, 2018. The Company also plans to issue 300,000 unquoted options to acquire ordinary shares at a price per share of A$2.23, vesting in three equal tranches on June 28, 2018, June 28, 2019, and June 28, 2020, respectively, and expiring 27 June 2024; and 100,000 unquoted options to acquire ordinary shares at a price per share of A$1.54, vesting in three equal tranches on Sept. 16 2018, Sept. 16, 2019, and Sept. 16, 2020, respectively, and expiring 15 September 2024. The 158,901 ordinary shares will be issued as consideration for services in connection with the license of intellectual property relating to cell targeting technology (ex vivo fucosylation) from a third party. The 400,000 unquoted options to acquire ordinary shares will be issued pursuant to the Company's Employee Share Option Plan. A full-text copy of the regulatory filing is available at: https://is.gd/To8v81 About Mesoblast Australia-based Mesoblast Limited (ASX:MSB; Nasdaq:MESO) is a global developer of innovative cell-based medicines. The Company has leveraged its proprietary technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a broad portfolio of late-stage product candidates. Mesoblast's allogeneic, 'off-the-shelf' cell product candidates target advanced stages of diseases with high, unmet medical needs including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions. Mesoblast Limited reported a net loss before income tax of US$90.21 million for the year ended June 30, 2017, compared to a net loss before income tax of US$90.82 million for the year ended June 30, 2016. As of June 30, 2017, Mesoblast had US$655.7 million in total assets, US$138.9 million in total liabilities and US$516.8 million in total equity. PricewaterhouseCoopers, in Melbourne, Australia, issued a "going concern" opinion on the consolidated financial statements for the year ended June 30, 2017, noting that Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. PEPPER RESIDENTIAL: Moody's Hikes Rating on Class F Notes to Ba2 ---------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of three classes of notes issued by Pepper Residential Securities Trust No. 15. The affected ratings are as follows: Issuer: Pepper Residential Securities Trust No. 15 -- Class D, Upgraded to A1 (sf); previously on Apr 19, 2017 Upgraded to A2 (sf) -- Class E, Upgraded to Baa2 (sf); previously on Apr 19, 2017 Upgraded to Baa3 (sf) -- Class F, Upgraded to Ba2 (sf); previously on Apr 19, 2017 Upgraded to Ba3 (sf) RATINGS RATIONALE The upgrade was prompted by the increase in note subordination during the sequential pay period. In addition, the mortgage portfolio has been performing within Moody's expectations. Both scheduled and indexed loan to value (LTV) ratios have decreased since the last rating action and have led to lower MILAN CE for the transaction. As of August 2017, the note subordination for the Class D, Class E and Class F notes had increased to 9.5%, 6.6%, and 4.0% from 4.3%, 3.0%, and 1.8%, respectively at closing date. The notes will continue to pay down on a sequential basis until at least the second anniversary of the transaction closing, which will be in November 2017. The performance of the mortgage portfolio is within Moody's expectations. As of August 2017, 7.6% of the outstanding pool was 30-plus day delinquent, and 4.0% was 90-plus day delinquent. Cumulative losses amounted to AUD708,582, or 0.2% of the closing pool balance. Based on the observed performance and outlook, Moody's has maintained its expected loss assumption at 1.7% as a percentage of the closing pool balance. Moody's has also decreased its MILAN CE assumption to 14.2% from 15.4% in April 2017, based on the current portfolio characteristics. The MILAN CE and expected loss assumption are the two key parameters used by Moody's to calibrate the loss distribution curve, which is one of the inputs into the cash-flow model. The transaction is an Australian non-conforming RMBS secured by a portfolio of residential mortgage loans. A portion of the portfolio consists of loans extended to borrowers with impaired credit histories or made on a limited documentation basis. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in September 2017. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expectations, and (2) deleveraging of the capital structure. Factors that could lead to a downgrade of the ratings include (1) performance of the underlying collateral that is worse than Moody's expectations, (2) decrease in the notes' available credit enhancement, and (3) deterioration in the credit quality of the transaction counterparties. QUEENSLAND NICKEL: Palmer Loses Appeal to Stop Liquidators Suit --------------------------------------------------------------- Vanessa Marsh at The Courier-Mail reports that embattled businessman Clive Palmer has lost an appeal to halt his legal battle with Queensland Nickel liquidators who are attempting to freeze more than AUD200 million of his personal assets. During a hearing in the Court of Appeal, Mr. Palmer said the commercial impact of an asset freeze could be "catastrophic" to his businesses and employees, the report says. The Courier-Mail relates Mr. Palmer warned the livelihood of his "hundreds" of staff could be at risk and said the application should be put on hold until a separate appeal relating to the case had been finalised. Barrister Matthew Hickey, who appeared on behalf of the government-appointed liquidators, urged Justice Philip McMurdo not "to place much weight" on Mr. Palmer's submission regarding prejudice to his businesses, saying the bias "will exist in any event" given the amount of public interest in the case. Justice McMurdo denied Mr. Palmer's application and ordered him to pay costs in the matter, The Courier-Mail says. Outside court Mr. Palmer told reporters, "you win some, you lose some," before leaving in a chauffeur-driven Bentley, adds The Courier-Mail. About Queensland Nickel Queensland Nickel was engaged in the production and marketing of nickel and cobalt. It owned and operates the Palmer Nickel and Cobalt Refinery in Queensland, Australia. It is owned by businessman and politician Clive Palmer. The Company experienced financial difficulties and Palmer sought assistance from the Queensland Government in late 2015 but was rejected. The Company's ownership was later transferred to a new company named Queensland Nickel Sales Pty Ltd in a joint venture between two of Clive Palmer's companies, QNI Resources Pty Ltd and QNI Metals Pty Ltd, with the directorship going to Palmer's nephew Clive Theodore Mesnick. On January 19, 2016, the Company entered into voluntary administration. John Park, Stefan Dopking, Kelly-Anne Trenfield and Quentin Olde of FTI Consulting were appointed as voluntary administrators of the Company. FTI as administrators issued a report in early April 2106 that the Company "incurred debts of AUD771 million after going insolvent in November [2015]." On April 22, 2016, the Companies' creditors voted for liquidation. FTI went from being administrators to liquidators at the second creditors meeting in April 2016. SAFE HOMES: Second Creditors' Meeting Set for Oct. 23 ----------------------------------------------------- A second meeting of creditors in the proceedings of Safe Homes Constructions Pty Ltd has been set for Oct. 23, 2017, at 3:30 p.m., at the offices of Worrells Solvency & Forensic Accountants, Level 15, 114 William Street, in Melbourne, Victoria. The purpose of the meeting is (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 5:00 p.m. Matthew Jess and Matthew Kucianski of Worrells Solvency were appointed as administrators of Safe Homes on Sept. 15, 2017. WALLACE2 PTY: First Creditors' Meeting Set for Oct. 23 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Wallace2 Pty Ltd will be held at Level 3, 90 William Street, in Melbourne, Victoria, on Oct. 23, 2017, at 11:00 a.m. Kristen Beadle and Mat Muldoon of Sellers Muldoon Benton were appointed as administrators of Wallace2 Pty on Oct. 11, 2017. ========= C H I N A ========= ELION RESOURCES: S&P Assigns B Corp Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings assigned its 'B' long-term corporate credit rating to Elion Resources Group Co. Ltd. The outlook is stable. Elion Resources mainly engages in engineering and construction (E&C) projects related to desertification control and ecology restoration, as well as real estate development. S&P said, "Our rating on Elion Resources mainly reflects our view of the company's E&C and real estate development businesses. We expect these segments to contribute to around 70% of the company's profit in the next two to three years, with each contributing almost equally. The company's other business segments, including chemicals, utilities, and trading, are much smaller in terms of profit contribution. "We expect Elion Resources to enlarge its operating scale in the E&C business, with revenue from this segment rising to around Chinese renminbi (RMB) 21 billion in 2019, from RMB2.7 billion in 2016. However, the company will still remain much smaller than its peers. Elion Resources also has a concentrated geographical exposure, with operations in northwest and north China. Moreover, with the Chinese government pushing for environmental protection and the prospect for fast growth, the company is likely to face increasing competition from existing players and new entrants. However, Elion Resources' 30 years of experience and specialized technology in desertification control should help it to continue to win contracts. In our view, the company also has a flexible cost structure and reasonable working capital management." For the real estate business, Elion Resources has reasonable geographical diversification and low land costs. The company has operations in Inner Mongolia, Tianjin, Hebei, and Fujian, and is expanding into other places in China as well as overseas. Elion Resources can also acquire land at a low cost for some projects related to ecology restoration. However, the company's business size is small, with forecast revenue of around RMB19.0 billion in 2019 and a small land bank of 1.4 million square meters as of end-2016. The company also has a low market share and limited brand recognition in China's property development market. S&P said, "We expect Elion Resources' financial metrics to gradually improve in the next two to three years, with higher- margin businesses such as E&C and real estate development contributing to a greater portion of total profit. Nonetheless, we believe the company will remain highly leveraged to support fast expansion. We also anticipate that Elion Resources will continue to have high working capital outflows because of its large spending on land purchase for real estate development and uncertainty in collection of receivables for E&C projects. We estimate the company's debt-to-EBITDA ratio to be 6.0x-9.0x in 2017-2018 and its ratio of free operating cash flow (FOCF) to debt to remain negative owing to high working capital outflow and large capital expenditure." Elion Resources' other businesses offer moderate diversification to the company's business and result in lower earnings volatility during an economic cycle. However, the company's operations are mostly in China, and the correlation between the E&C and real estate businesses temper such benefits. Elion Resources has sufficient experience in desertification control and ecology restoration. The company has developed an industry value chain that extends from E&C to pharmaceuticals, utilities, and real estate development. This unique business model not only helps to restore the environment but also aids in poverty alleviation in certain less-developed regions in China by employing locals. As a result, Elion Resources' business model is favored by local governments, as evidenced by the company's increasing inflow of strategic cooperation agreements for E&C projects. Elion Resources also receives government support through low-cost long-term borrowings from policy banks and the National Special Construction Fund for some of its E&C projects. S&P believes the above strengths give the company a better competitive advantage over its peers in the E&C industry. S&P said, "The stable outlook on Elion Resources reflects our expectation that the company's financial position will improve but remain highly leveraged over the next two to three years owing to the fast expansion of its E&C and real estate businesses. The outlook also reflects our view that the company will maintain its small business scale and current market position in its core business segments over the period. "We would downgrade Elion Resources if the company sees heightened liquidity risk due to weaker cash flows than we expect or deteriorating standing in the credit market. We could also downgrade the company if its financial metrics deviate significantly from our forecasts and worsen over the next two to three years, possibly due to weaker working capital management or higher debt than we estimate. "We would upgrade Elion Resources if its debt-to-EBITDA ratio approaches 5.0x for a sustained period. Such improvement could come from increasing profit and cash flow due to business growth and improving margins, better working capital management, or lower debt. However, we believe the upside is limited in the next 12-24 months." ZHONGRONG INT'L: S&P Rates New US$-Denom. Sr. Unsec. Notes 'BB-' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' long-term issue rating to the proposed issuance of U.S. dollar-denominated fixed-rate senior unsecured notes by Zhongrong International Resources Co. Ltd., a special purpose financing vehicle of Zhongrong Xinda Group Co. Ltd. (BB-/Stable/--). Zhongrong Xinda and certain of its offshore subsidiaries provide an unconditional and irrevocable joint guarantee. The ratings on the notes are subject to S&P's review of the final issuance documentation. The issuer intends to use the issuance proceeds for general corporate purposes. Zhongrong Xinda's capital structure consists of Chinese renminbi (RMB) 2.9 billion of secured debt and RMB23.3 billion of unsecured debt issued by Zhongrong Xinda, and RMB6.1 billion of unsecured debt issued by its subsidiaries. The rating on the proposed notes is the same as the corporate credit rating because no significant elements of subordination risk are present in the capital structure. The issue is not contractually subordinated and it is not secured. As of end 2016, Zhongrong Xinda has RMB2.9 billion in consolidated secured debt, less than the notching threshold of 50% of consolidated total debt. At the subsidiary level, unsecured debt totals RMB6.1 billion and the priority debt ratio is less than the 50% notching threshold. As such, S&P has not applied any notching from the corporate credit rating. On Aug. 30, 2017, Zhongrong Xinda released its 2017 interim report. The company's revenue increased by 45% year on year during the first half of 2017 to RMB36.6 billion, mainly due to higher coke prices. Operating profit increased by 85% year on year to RMB2.4 billion during the same period. S&P said, "Net income profit was higher than our expectation, at RMB1.8 billion (our previous estimate for full-year 2017 was RMB1.3 billion). We believe the performance in the first half of 2017 is supportive of the company's current credit metrics." ========= I N D I A ========= 4G IDENTITY: CRISIL Reaffirms 'D' Rating on INR35MM Bank Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with 4G Identity Solutions Private Limited (4G Identity; part of the 4G group) for obtaining information through letters and emails dated June 19, 2017 and July 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 35 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 9 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 6 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Bank 10 CRISIL D (Issuer Not 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 4G Identity Solutions 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 4G Identity Solutions 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 D/CRISIL D'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of 4G Identity and its wholly owned subsidiary, 4G Informatics Pvt Ltd (4G Informatics). This is because these two companies, together referred to as the 4G group, are under a common management, in a similar line of business, and have significant operational linkages and fungible cash flows. 4G Identity was set up in 2007 by Dr. Sreeni Tripuraveni and his family members. The company provides identity management solutions by leveraging smart cards and biometric technologies. It also provides software development, system integration, and data management for e-governance activities. 4G Informatics also provides identity management solutions for government and private institutions. BEE KAY: CARE Moves B+ Rating to Issuer Not Cooperating Category ---------------------------------------------------------------- CARE Ratings has been seeking information from Bee Kay Precision Private Limited (BKP) to monitor the ratings vide emails dated August 24, 2017 and June 27, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. Further, Bee Kay Precision Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its rating aggrement In line with the extant SEBI guidelines CARE's rating on Bee Kay Precision Private Limited will now be denoted as CARE B+/ A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 8.00 CARE B+; Issuer Not Facilities Cooperating; Based on best Available information Short term Bank 1.00 CARE A4; Issuer Not Facilities Cooperating; Based on best Available information The rating assigned to the bank facilities of Bee Kay Precision Private Limited continues to remain constrained by its small scale of operations, low profitability margins, leveraged capital structure and weak coverage indicators, and working capital intensive nature of operations, The rating is further constrained by susceptibility of margins to volatility in prices of raw material. The rating, however, draws comfort from experienced promoters and reputed though concentrated customer base. Going forward, the ability of the company to increase its scale of operations while improving its profitability margins and capital structure, and effective management of working capital requirements shall be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Small and fluctuating scale of operations: The scale of operations is small as marked by a total operating income and gross cash accruals of INR35.98 crore and INR0.99 crore respectively during FY16. The small scale limits the company's financial flexibility in times of stress and deprives it of scale benefits. Weak financial risk profile The financial risk profile of the company is characterized by low profitability margins, leveraged capital structure and weak coverage indicators. The profitability margins of the company stood low on account of reduced cost of production, the same continues to remain low on account of company's presence in highly competitive nature of industry. Also, high financial charges and depreciation cost restricts the net profitability of the company. The capital structure of the company stood leveraged on account of higher debt and lower networth base. The debt coverage indicators remained weak owing to lower profitability and higher interest cost. Working capital intensive nature of operations: BKP has working capital intensive nature of operations as marked by operating cycle of 132 days in FY16 mainly on account of high inventory period. Suppliers allow around three months days of credit period to BKP. The company also grants similar credit period to its customers. Susceptibility of margins to volatility in prices of raw material: Steel is the major RM for the company whose prices remain volatile. With industry being competitive players (especially smaller ones like BKP) are unable to pass on any RM price hike to customers. Also on the supply side it does not have any long term agreement for RM procurement which adds to the problem Key Rating Strenghts Experienced promoters: The operations of (BKP) are currently managed by Mr Ram Chandra Sharma and Mr Neeraj Sharma. Mr. Ram Chandra Sharma has an experience of around two decades in manufacturing of auto parts through family run business by the name BK Enterprises and BKP. Mr Neeraj Sharma has around a decade of experience through his association BKP. Concentrated though reputed customer base: The company had established good relationship with numerous Original Equipment Manufacturers (OEMs) such as Tata Motors Limited. These customers are spread across different segments of the automobile industry which aids the company in compensating for the slowdown in one or more specific segment. BKP gets repeat orders from its clients. The top 2 customers constituted majority of total sales. In the event of change in procurement policy of these customers the business of the BKP will be adversely impacted. Kanpur-based (Uttar Pradesh), Beekay Precision India Private Limited (BKP) was incorporated in 2006 by Mr Ram Chandra Sharma and Mr Neeraj Sharma. The company has succeeded an erstwhile proprietorship BK Enterprises, the proprietorship concern of Mr Ram Chandra Sharma. BKP is engaged in manufacturing of sheet metal components for two wheelers and four wheelers. Also company is engaged in manufacturing of machinery parts for loom machines. Further the company manufactures military shirts and parts of arms and ammunitions for Small Arms Factory. The company ventured into textile industry in FY14 ( refers to the period of April 1 to March 31). The company majorly procures the raw material from Tata Steel Limited (rated CARE AA+), Bhushan Steel Limited (rated CARE D) and Rastriya Ispat Nigam Limited and any shortfall is met through suppliers located in the local area. BKP has contracts with Tata Motors Limited (rated CARE AA+) and Lohia Corp Limited for supply of sheet metal components. CHERAN STEELS: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Cheran Steels Private Limited (CSPL) 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 ---------- --------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Overdraft 1 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 2 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 2 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 Cheran Steels 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 Cheran Steels Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D. Based in Pollachi (Tamil Nadu), CSPL was incorporated in 2008. The company had accumulated losses when it was acquired by Mr. Mohan in 2012. It is currently managed by Mr. D Mohan along with his relative Mr. M Karunanidhi. CSPL manufactures thermo- mechanically treated bars and sells its products under the brand Cheenu. CHERAN STEEL ROLLING: CRISIL Reaffirms C Rating on INR5.75M Loan ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Cheran Steel Rolling Mills (CSRM) 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 ---------- --------- ------- Cash Credit 5.75 CRISIL C (Issuer Not Cooperating; Rating Reaffirmed) Overdraft 1.00 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term .25 CRISIL C (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 Cheran Steel Rolling Mills. 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 Cheran Steel Rolling Mills 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 C/CRISIL A4'. Incorporated in 1993 by Mr. D Mohan along with his relative Mr. M Karunanidhi, CSRM, is based in Coimbatore, Tamil Nadu, and manufactures steel structural products such as angles and joists. CSRM sells its products under the brand Cheenu. CONTEC SYNDICATE: Ind-Ra Moves BB Rating to Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Contec Syndicate Private Limited's (CSPL) 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: -- INR30 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB(ISSUER NOT COOPERATING) rating; and -- INR120 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 Sept. 28, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE CSPL, incorporated in 1996, is managed by Vemulapalli Vishnupriya and Vunnam Vishnupriya. The company is involved in the construction of bridges, roads, earthworks and other infrastructure work. It belongs to the category of special class civil contractors with the governments of Andhra Pradesh and Telangana. CORNERVIEW CONSTRUCTIONS: ICRA Ups Rating on INR110cr Loan to B --------------------------------------------------------------- ICRA Ratings has revised the long-term rating for the INR110.00 crore non-convertible debentures of Cornerview Constructions & Developers Pvt. Ltd. to [ICRA]B from [ICRA]D. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Non- 110.00 [ICRA]B (Stable); revised Convertible from [ICRA]D Debentures Rationale The revision in rating factors in the favourable debt refinancing leading to elongated repayment schedule. CCDPL has acquired 96 units from Acme Housing India Pvt. Ltd. in the project, "Acme Ozone", at a cost of INR70.50 crore by issuing NCDs. These NCDs will be repaid through eventual sale of the identified units. The NCD is to be repaid in October 2019, which allows flexibility in repayment such that the entire amount is repaid at maturity, giving a pre-determined assured return. The rating also takes into account established position and track record of the promoter group in real estate development in Mumbai with an experience of over four decades. The rating, however, is constrained by the high execution risks of the underlying project; given that only ~65% of the estimated construction cost has been incurred in the project till July 2017. The rating also takes into account the exposure to high market risks with only 1% of the area of the identified units being sold till July 2017, and slowdown in the real estate sector. However, the favourable location of the project provides some comfort. The rating is further constrained by CCDPL's high dependence on the Acme Group for the sale of its share of the identified units. Going forward, the company's ability to liquidate the units in a timely manner and achieve healthy realisation remains critical. Key rating drivers Credit strengths * Favorable debt refinancing leading to elongated repayment schedule: The company has redeemed INR27.50 crore of NCDs (Series A) and repaid INR8.50 crore of inter corporate deposits and INR7.00 crore of overdue interest by issueing fresh series of NCDs amounting to INR43.00 crore (Series A2) in May 2017. The repayment of total NCDs of INR70.5 crore (Series A2 and B) is due in October 2019. ICRA draws comfort from sufficient cushion available with the company to improve its bookings and cash flows before the redemption date. * Extensive experience of promoters and support from strong parent: CCDPL is a part of the Acme Group of Companies, promoted by the Mumbai-based Doshi family. The group is primarily engaged in real estate development, operating in the residential, commercial and retail spaces in Mumbai through various group companies. The group has successfully completed more than 63 residential and commercial projects and has developed more than 20 lakh sq. ft. of construction in the western suburbs of Mumbai. * Favorable location of the project: 'Acme Ozone' is located near Manpada, Off Ghodbunder Road, Thane. There are industrial belts like Waghle Estate, where in several SME units as well as IT/ITeS companies are located. The micro market also has a well-developed infrastructure and connectivity to Greater Mumbai as well as affordability. It is situated in proximity to Ghodbunder Road, located ~0.4 km off the main road as well as the proximity to Eastern Express highway (~3 km) provides it with ease of accessibility and connectivity. Credit weaknesses * Delays observed in project execution; exposure to high execution risk as the development of identified towers is in early stage of development: The completion of MMRDA building was delayed by more than nine months, while the scheduled completion date of other towers has been revised by three to nine months. While, the budgeted construction cost of the project is estimated to be INR791.00 crore and the company has incurred a total cost of 65% till July 2017. Taking into consideration the units identified by the investor in three buildings (Dandelia, Alpinia and Herbilia), the project is relatively in early stage of execution since only in Dandelia and Aplinia, the reinforced cement concrete is completed and is in finishing stage. In Herbilia, the company has only completed the ground floor slab till July 2017. Thus, the execution risks in terms of time and cost overrun remains on the higher side. * Exposure to high market risks with only 1% of the area of the identified units being sold: Of the total units of 1,611, the company has received bookings for 1,062 units till July 2017 accounting for 66% of the total saleable area. The company has received INR~735.00 crore against a booked value of Rs. 1004.94 crore. The project's market risk remains moderate as 34% of the inventory in the project is still unsold and around 95% of the area in identified units remains unsold. The sales of identified units at projected price will remain critical for NCD repayment and to earn pre-determined return. Incorporated in FY2014, CCDPL is a closely held private limited company. It is part of the Acme Group of companies (Acme), promoted by the Mumbai-based Doshi family. The group is primarily engaged in real estate development and caters to the residential, commercial and retail space in Mumbai through various group companies. The group has many on-going projects across residential and commercial spaces in Mumbai. A major project being Acme Ozone, which is a residential project being developed by Acme Housing India Private Limited ('AHIPL' or the 'developer'). CCDPL has acquired 96 units in the project, funded through Non-convertible Debentures (NCDs) of INR70.50 crore. The units would, thereafter, be sold by CCDPL. The sales proceeds thus generated would be utilised to provide an exit to the investors. CCDPL has no other on-going projects. The company has not recognised any sales from sale of identified flats. ESSAR STEEL: IRP Seeks Applicants for Resolution Plan by Oct. 23 ---------------------------------------------------------------- Mr. Satish Kumar Gupta, the Resolution Professional for the Essar Steel India Limited, invites all potential applicants to submit resolution plans for the company by Oct. 23, 2017. Potential applicants can submit expression of interest along with relevant documents through email: satishkg.ip@gmail.com or ip.essarsteel@gmail.com or can send copies to: Satish Kumar Gupta Alvarez & Marsal India Pvt. Ltd. Unit 703/704, 7th Floor Tower A, Peninsula Corporate Park G. K Marg, Lower Parel Mumbai, Maharashtra 400013 India The consideration, evaluation and approval of eligible resolution plans will be by the Committee of Creditors under the provisions of the Insolvency and Bankruptcy Code and Corporate Insolvency Resolution Process Regulations. Incorporated in 1976, Essar Steel India Ltd. is a part of the Essar Group and is having 10 MTPA integrated steel manufacturing facilities at Hazira, Gujarat and iron ore beneficiation and pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag, Andhra Pradesh (8 mtpa). The company also owns and operates two iron ore slurry pipelines -- one each in Odisha (Dabuna to Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the iron ore slurry from the beneficiation plant (located near the iron ore mines in Dabuna and Kirandul) to the pellet plant (located near the Paradip and Vizag ports). A large portion of the iron ore pellets produced are intended for captive consumption by ESIL's steel plant at Hazira for cost optimization. The National Company Law Tribunal (NCLT), Ahmedabad, admitted Essar Steel's insolvency case on Aug. 2, 2017. State Bank of India's suggested interim resolution professional (IRP) Satish Kumar Gupta, of Alvarez and Marsal India, has been appointed as IRP. Essar Steel owes more than INR45,000 crore to lenders, of which INR31,671 crore had already been declared as non-performing as of March 31, 2016, The Economic Times disclosed. The SBI-led consortium of 22 creditors accounts for 93% of this amount. Essar Steel owes $ 450.67 million to SCB in debt. Both petitions filed by State Bank of India (SBI) and Standard Chartered Bank (SCB) for initiating insolvency proceeding under Insolvency & Bankruptcy Code (IBC) against the steel major Essar Steel Ltd have been admitted by NCLT on Aug. 2, according to ET. ESSEL MARKETING: ICRA Moves B Rating to Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings has moved the ratings for the INR12.20-crore bank facilities of Essel Marketing and Promotions Private Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable)/[ICRA]A4 ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash 10.20 [ICRA]B (Stable); ISSUER NOT Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non Fund-based- 2.00 [ICRA]A4; ISSUER NOT Letter Of Credit/ COOPERATING; Rating moved to Buyers Credit/ the 'Issuer Not Cooperating' Bank Guarantee category Rationale The rating is based on limited cooperation from the company since the time it was last rated in March 2016. As part of its process and in accordance with its rating agreement with Essel Marketing and Promotions Private Limited, ICRA has been sending repeated reminders to the company for payment of surveillance fee that became due. However, despite multiple requests by ICRA, the company's management has remained non-cooperative. In the absence of requisite cooperation and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, the company's ratings have been moved to the "Issuer Not Cooperating" category. Key rating drivers Credit strengths * Extensive experience of promoters in the supply of a wide range of promotional products EMPPL's key promoter has longstanding experience in supply of wide range of promotion products mainly to Fast Moving Consumer Goods (FMCG) and pharmaceutical companies The extensive experience of the promoters have facilitated the company to establish strong relationship with customers as well as suppliers * Established relationship with reputed clients with track record of repeat orders: Over the years, the company has established a strong relationship with multinationals in FMCG and Pharmaceutical companies. The company has been getting repeat orders from most of its customers thereby exhibiting good client relationships and stability to revenues. Credit weaknesses * Moderate scale of operations limiting economies of scale and flexibility in pricing: Despite steady growth in company's operating income, its scale of operation continue to remain moderate. This limits the economics of scale benefits and flexibility in pricing. * Regular dividend payouts in the last three fiscals has been impacting cash accruals; net worth has remained modest over years: The company's capital structure has remained weak as depicted by a gearing of 2.87 times as on March 31, 2017 on account of modest networth. The NCA/ total debt has remained moderate at 12% on account of regular dividend payouts by the company impacting its cash accruals. * Stretched liquidity position owing to slow realisation of payments from customers: EMPPL has limited bargaining power against its clientele leading to liberal credit terms offered to its key customers. This has led to high utilisation of working capital limits. * High customer concentration risk with top three customers contributing to more than 70% of the total sales: While comfort is drawn from the company's established relationship with reputed customers, its operation continues to remain exposed to high customers concentration risk with the top 3 customers contributing more than 75% of the total sales in FY2017. * Intense competition due to highly fragmented industry structure: The company faces intense competition across the value chain on account of high fragmentation and low entry barriers. EMPPL continues to face competition from numerous small players, both in the organised and unorganised sectors. Essel Marketing and Promotions Private Limited, incorporated in 2006 by Mr. Rohit Lamba, is engaged in the supply of a wide range of promotional products typically required in the trade/retail promotional campaigns of FMCG and pharmaceutical companies. Additionally, the company has a dedicated team to look into the software development and management for its clients. EMPPL supplies products such as toys, pencil boxes, plastic jars, stickers, pens, and other customized gift articles. Mr. Lamba is a first generation entrepreneur, supported by a team of professionals in the daily operations of the company. In FY2017, the company reported a net profit of INR1.79 crore on an operating income of INR80.86 crore, as compared to a net profit of INR1.65 crore on an operating income of INR76.91 crore in FY2016. GANESH SAW: CARE Assigns B/A4 Rating to INR2.50cr Bank Loan ----------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Ganesh Saw Mills Private Limited (GSMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long/Short-term 2.50 CARE B; Stable/CARE A4 Bank Facilities Assigned Short-term Bank Facilities 5.00 CARE A4 Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of GSMPL are tapered down by the small scale of operations with low capitalization, highly fluctuating profit margins, elongated working capital cycle, limited value addition leading to low entry barriers and vulnerability to fluctuation in prices of timber logs. The ratings however, derive strength from the extensive experience of the promoters along with its long track record of operations and comfortable capital structure and debt coverage indicators. Ability of company to increase its scale of operations, maintain and stabilize its profitability and solvency position along with efficient working capital management are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operations with low capitalization and highly fluctuating profitability: The scale of operations of the entity remained small with total operating income (TOI) and net- worth base of INR4.84 crore and INR3.58 crore as on March 31, 2017 (Provisional). The small scale of operations limits the financial flexibility of the company. Furthermore, the total operating income and profit margins remained highly volatile in the past three years ended FY17 (refers to a period from April to March) owing to fluctuation in prices of traded goods. Elongated working capital cycle: The operations of the entity are working capital intensive with funds being mainly blocked in debtors as reflected by high gross current asset days of over 251 days during the year ending March 2017. The same resulted in delayed payments to the suppliers. Limited value addition: The business activity of GSMPL involves importing timber and supplying them domestically to various wholesalers and retailers. There is limited value addition involved in the business leading to low profitability margins. Furthermore, due to limited value edition involved in the process the industry is subject to low entry barriers. Thus, the nature of business has attracted a number of importers in the timber business, putting downward pressure on the margins and creating huge competition in the otherwise fragmented sector. Vulnerability to fluctuation in prices of timber logs and currency rates: GSMPL imports timber from Singapore, Dubai, Burma, and Ghana etc. This exposes the firm to adverse changes in the government policies in these countries with respect to timber exports and timber prices. Moreover, GSMPL does not employ any hedging mechanism for the purchases made in foreign currency; hence, the margins remained susceptible to volatility in the prices of timber and exchange rate fluctuation. Key Rating Strengths Experienced promoters and established track record of operations: GSMPL was established by Mr. Ratansi Patel and succeeded by Mr. Khetalal Ratansi Patel and Mr. Nitesh Khetalal Patel respectively. The Patel family is involved in the trading of timber logs business from more than four decades. The promoters have a considerable track record in the timber sector which has resulted in long term relationships with the key suppliers and customers. Comfortable capital structure and debt service coverage indicators: The capital structure of the company remained comfortable. Moreover, low reliance on external debt and low interest cost resulted in comfortable debt coverage indicators. Incorporated in 1997 Ganesh Saw Mills Private Limited (GSMPL) is engaged in the business of importing and trading of timber logs and is promoted by Mr. Khetalal Patel, Mr. Nitesh Patel and Mr. Ratansi Patel. GSMPL imports timber logs and sells them in the domestic market to the wholesalers and retailers. The main variety of wood which the company imports is teak wood which is mainly used for making doors, windows, furniture etc. GOKUL STEELS: CRISIL Reaffirms 'D' Rating on INR6.5MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Gokul Steels Private Limited (GSPL) for obtaining information through letters and emails dated July 13, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 3.05 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 6.45 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 Gokul Steels 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 Gokul Steels 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 D'. GSPL, promoted by the Bihar-based Mr. Vivek Kasera, recently set up a steel structural rolling mill in Fatwa, Patna District. The mill commenced operations in May 2014. The Kasera family does not have any prior experience of operating a rolling mill. However, the family has extensive experience of over two decades in trading in iron and steel products. HANSA METALLICS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Hansa Metallics Ltd's (HML) 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 action is: -- INR770 mil. Fund-based working capital limits migrated to non-cooperating category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR229.2 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 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 Incorporated in 1997, HML manufactures ERW precision tubes at its manufacturing facilities in Lalru, Punjab. The company's day-to- day operations are managed by Mr. Surender Garg. INDIAMCO: CARE Lowers Rating on INR14.50cr ST Loan to D ------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of INDIAMCO, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short-term Bank 14.50 CARE D; ISSUER NOT Facilities COOPERATING; Revised from CARE A4 on the basis of best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from INDIAMCO to monitor the ratings vide e-mail communications/letters dated January 16, 2017, February 14, 2017, March 29, 2017, August 2, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating of INDIAMCO's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating has been revised on account of delay in debt servicing. Detailed description of the key rating drivers: Key Rating Weaknesses Delay in debt servicing: As per the interaction with the banker, the account has turned NPA. Established in 1972, Indiamco is engaged in trading of rough and polished diamonds, antique and precious stones. The entity is currently not a DTC sight holder and procures rough and semi- finished diamonds locally from Surat and also imported (from USA) around 94.47% in FY15 (vis-Ö-vis around 57.90% of total purchases in FY14) of its requirements. During FY15, Indiamco earned majority of its revenue by exports contributing around 97.82% of total income (vis-Ö-vis 79.78% in FY14) with exports to USA and Hong Kong and the balance from the domestic market. J.P.S. FOUNDATION: CRISIL Reaffirms B+ Rating on INR1MM LT Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with J.P.S. Foundation (JPSF) for obtaining information through letters and emails dated July 10, 2017 and August 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 1 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 J.P.S. Foundation. 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 J.P.S. Foundation is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. JPSF, set up in 1986 and registered in 1992, functions as a not- for-profit society. Based in Lucknow, the society implements various schemes, operated by the state and central government in Unnao, Raebareli and surrounding areas. JPSF has been operating a primary school up to inter-college level, since 1994 and established a college that offers graduation programmes, in 2007. It also operates various government schemes, including old age homes under social welfare and women welfare, vocational training for women under District Urban Development Agency (DUDA), among others. JAGRATI TRADE: CARE Moves B+/A4 Rating to Not Cooperating --------------------------------------------------------- CARE Ratings has been seeking information from Jagrati Trade Services Private Limited (JTPL) to monitor the ratings vide letters/e-mail communications dated May 5, 2017, May 10, 2017, August 18, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of ratings, CARE is unable to express opinion on the ratings. Further, JTPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. In line with the extant SEBI guidelines CARE's rating on JTPL's bank facilities will now be denoted as CARE B+/A4; ISSUER NOT COOPERATING. Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short- 0.50 CARE B+/A4; Issuer not Term Bank Facilities Cooperating Short-term Bank 4.40 CARE A4; Issuer not Facilities cooperating Detailed description of the key rating drivers At the time of last rating in March 16, 2017 the following were the rating strengths and weaknesses: Key Rating Weaknesses: Small scale of operations with operating loss in FY16; however there is no cash loss: JTPL is a relatively small player in the jute industry having Total Operating Income (TOI) and PAT of INR23.00 crore and INR0.51 crore respectively in FY16. JTPL incurred operating loss during FY16 in view of higher operating cost. In spite of operating loss, the company earned net profit in FY16 primarily on the back of profit amounting to INR1.82 crore earned from investing in real estate activities through joint venture with different entities. Accordingly, the company did not incur cash loss during FY16. The GCA declined from INR0.75 crore in FY15 to INR0.58 crore in FY16. Further, the interest coverage ratio was negative during FY16 on the back of operating loss incurred during FY16. JTPL was servicing the interest expenses from the non-operating income aggregating INR1.82 crore earned from investing in real estate activities through joint venture formed with different entities. Stiff competition due to fragmented nature of the industry with presence of many unorganized players: The jute industry in which the company operates is highly fragmented and competitive marked by the presence of numerous players across India. Hence, the players in the industry do not have any pricing power and are exposed to competition induced pressures on profitability. Working capital intensive nature of business: JTPL's business, being trading of raw jute is working capital intensive mainly due to high average collection period. The average collection period remained high in the range of 167-187 days during FY14-FY16 on the back of delays in receipt of payments from its clients on the back of weak sentiment prevalent in the jute textile industry. The company mainly uses non-fund based trade limits to finance its working capital requirements. Key Rating Strengths: Experienced promoter with long track record of operations: JTPL is currently managed by Mr Jagdish Sarda and Mr. Krishna Chandra Senapati of Kolkata, West Bengal. Mr Jagdish Sarda has around three decades of experience in the jute industry, looks after the overall management of the company. Further, JTPL commenced commercial operation since 1986 and accordingly has a long track record of operations of more than two decades. Comfortable leverage ratios: Both the long term debt equity and the overall gearing ratio (including acceptances) remained comfortable at below unity as on the last three accounts closing dates with the same remaining at 0.13x and 0.53x as on March 31, 2016. JTPL was incorporated on September 11, 1986 by Mr. Jagdish Sarda and Mr. Krishna Chandra Senapati, based out of Kolkata, West Bengal. Since inception, the company is engaged in trading of raw jute primarily in the state of West Bengal. Further, JTPL is also engaged in trading of shares and it also derives revenue from money lending activities to corporate entities. JYOTI GENERAL: ICRA Moves 'B+' Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings has moved the long-term rating for the INR7.20-crore bank facilities of Jyoti General Industries (JGI) to the 'Issuer Not Cooperating' category. The long-term rating is now denoted as: "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 7.20 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on no updated information on the entity's performance since the time it was last rated in March 2016, which was based on detailed information. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with JGI, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key Rating Drivers Credit Strengths * Experienced promoters with long presence in the industry * Rice being a staple food grain and the position of India as world's second largest producer and consumer, demand prospects for the industry are expected to remain good Credit Concerns * Modest profitability and debt coverage indicators * High gearing owing to funding of working capital requirements mainly through bank borrowings * Intensely competitive nature of the industry characterized by a number of small players * Inherent risks arising out of partnership business * Agro climatic risks, which can affect the availability of the paddy in adverse weather conditions Jyoti General Industries was established in 1981 by Mr. Than Mal Totla and Mr. Prabhulal Totla as a partnership firm. In 2004 the partnership was reconstituted with Mr Than Mal Totla, Mr. Vinod Kumar Totla, Ashok Kumar Totla, Shiv Kumar Totla as partners in an equal ratio. JGI is engaged in the processing and trading of rice. The manufacturing facility of the company is located on Chittor road, Bundi Rajasthan. KALSI BROTHERS: ICRA Moves B+ Rating to Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings has moved the ratings for the INR23.00 crore bank facilities of Kalsi Brothers to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable)/ [ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 15.00 [ICRA]B+ (Stable) ISSUER NOT Based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Short-Term Non 8.00 [ICRA]A4 ISSUER NOT Fund Based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on limited or no updated information on the entity's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Kalsi Brothers, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Long experience of the promoters in civil construction sector: Kalsi Brothers was reconstituted as a partnership concern in 2005 with nine partners. Firm's eligibility as class I contractor enables it to bid for large number of orders in the construction segment. Also, the management has established relations with its clients which are primarily government entities and suppliers. Credit weaknesses * Stretched liquidity: The revenues of the company have significantly declined and networking capital intensity has increased. The company has high inventory level in the past three years which are majorly contributed by work in progress. This has led to full utilization of its working capital requirements and stretched liquidity. * Intense competition: The highly fragmented and competitive nature of the industry has led to variability in the profitability of the company in the past. Kalsi Brothers was established as a Hindu Undivided Family (HUF) in 1983 and was converted into a partnership firm in 2004. The firm currently has nine partners with Mr. Daljit Singh Kalsi as the Managing Partner. The firm is located in Mohali, Punjab and is a registered 'Class-I' contractor with various government departments in Punjab which undertake civil construction work. The firm handles civil, public health engineering works, electrical, road and other allied works pertaining to housing colonies, multi-Storied framed structure buildings, industrial buildings, hostels, hotels, hospitals, and medical and engineering colleges. Most of the firm's projects are in Himachal Pradesh, Punjab and Haryana. KASHIPUR SITARGANJ: Ind-Ra Puts D Loan Rating to Not Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Kashipur Sitarganj Highways Pvt Ltd's (KSHPL) bank loans to Long Term 'IND D' from 'IND BB+' while migrating the ratings to the non- cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information and feedback from a banker. Investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The rating action is: -- INR4,220 mil. Senior long-term rupee loans (Long term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on best available information KEY RATING DRIVERS The downgrade reflects KSHPL's defaults on debt obligations during the trailing 12 months. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could result in a rating upgrade. COMPANY PROFILE KSHPL is an SPV incorporated to implement a 77.2km lane expansion project (two-to-four laning) between Kashipur and Sitarganj in Uttarakhand on NH-74, under a 21-year concession from National Highways Authority of India ('IND AAA'/Stable). The estimated project cost of INR7,574.1 million is being funded by a term loan of INR4,220 million, sponsor's contribution of INR1,124.1 million and INR2,230 million in a grant by the concessioner. Lender Independent Engineer has indicated that company has recently achieved the commercial operations date. LATA EXPORTS: CARE Lowers Rating on INR7.50cr LT Loan to 'D' ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Lata Exports Apparels Private Limited (LEAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 7.50 CARE D Revised from CARE B, Stable Short-term Bank Facilities 6.75 CARE D Revised from CARE A4 Detailed Rationale & Key Rating Drivers The revision in rating assigned to the bank facilities of LEAPL takes into consideration the delay in debt servicing. LEAPL's ability to establish clear track of servicing of its debt obligations with generation of sufficient cash accruals is the key rating sensitivity. Key updates Delay in debt servicing: As per the interaction with the banker, the account has been classified as NPA. Incorporated in 1996 by the Karthikeyan family, Lata Exports Apparels Private Limited (LEAPL) is engaged into manufacturing of ready-made garments and uniforms for men, women and children. It exports its products to USA, UK, Germany, Mexico and Australia (contributing ~56.30% to total income) and domestically to retailers and wholesalers (contributing ~13.72% to total income). Furthermore, LEAPL undertakes job work of garment manufacturing for other entities and brands such as Ashima Limited and India Fashions Limited (contributing ~29.98% to total income during FY16). LEAPL has its manufacturing facility at Bhiwandi with an installed capacity of 75,000 pieces per month having capacity utilisation of 65% during FY16. LAXMI RICE: ICRA Moves 'B' Rating to Not Cooperating Category ------------------------------------------------------------- ICRA Ratings has moved the ratings for the INR14.80 crore bank facilities of Laxmi Rice Mills to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 14.80 [ICRA]B (Stable) ISSUER NOT Based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on limited or no updated information on the entity's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Laxmi Rice Mills, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Long experience of the promoters in rice industry: Laxmi Rice Mills established in the 2009 as a partnership concern with Mr. Darshan Lal Garg and Mrs. Anita Rani as partners. The promoters have extensive experience in the rice industry which has resulted in growth in turnover in the past few years. Credit weaknesses * Modest scale of operations and presence in intensely competitive industry: The firm has moderate scale of operations and is present in a highly competitive rice milling industry which puts further pressure on its profitability which is already vulnerable to fluctuations in raw material prices. LRM is a partnership concern which came into existence in 2009. Presently the firm has two partners viz. Mr. Darshan Lal Garg and Mrs. Anita Rani. The firm is primarily engaged in the business of milling and processing of rice and has an installed milling capacity at Muktsar, Punjab of 8 tonnes per hour of paddy and a sorting capacity of 6 tonnes per hour of rice. LB COTTON: ICRA Moves 'D' Rating to Not Cooperating Category ------------------------------------------------------------ ICRA Ratings has moved the ratings for the INR10.00 crore bank facilities of LB Cotton Industries LLP to the 'Issuer Not Cooperating' category. The rating is now denoted as: "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- 5.00 [ICRA]D; ISSUER NOT Cash Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund Based Limit- 5.00 [ICRA]D; ISSUER NOT Term Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating action is based on no updated information on the entity's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with LBCIL, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Significant experience of promoters of trading in agricultural commodities; established relations with farmers through sister/associate concern: LB Cotton Industries LLP was established in 2011 to undertake ginning and pressing of cotton. The promoters have significant experience in trading of agro commodities and established relations with farmers through its group concerns. Credit weaknesses * Delays in debt servicing on account of the seasonal nature of operations resulting in stretched liquidity during cultivation season: The firm delayed in debt-servicing in March 2016 on account of cash flow mismatches due to the seasonal nature of operations of LB Cotton Industries LLP (LCIL). * Subdued profitability, on account of limited value addition and a highly competitive and fragmented industry structure due to low entry barriers: The cotton ginning and pressing industry is a highly fragmented industry with the presence of a large number of unorganized players owing to the low entry barriers, which results in high competition in terms of raw material procurement, causing pricing pressures. * Profitability is vulnerable to the movement of raw cotton prices, which are subject to crop seasonality, global demand- supply indicators, and government regulations: The industry is exposed to regulatory risks with the government restricting the export of cotton bales in order to support the domestic cotton textile industry. Furthermore, the profitability remains vulnerable to fluctuations in prices of raw cotton on account of the seasonality and harvesting of the cotton crop. Promoted by Mr. Dharmendra Pande and his four brothers in August 2011, LBCIL commenced ginning and pressing activities in October 2013, while the crushing activity commenced from December 2014. The firm's facility is located in Dharmabad, Nanded, over a land area of about 2.30 hectares and is equipped with 24 double rolling ginning machines, one pressing machine and seven expellers, with an installed production capacity of 240 bales per day and a seed-crushing capacity of 850 quintals per day. LODHA DEVELOPERS: Fitch Affirms B LT IDR; Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed India-based homebuilder Lodha Developers Private Limited's Long-Term Issuer Default Rating (IDR) at 'B' and assigned the rating a Stable Outlook. The rating on the outstanding USD200 million 12% senior unsecured notes issued by Lodha Developers International Limited and guaranteed by Lodha and certain subsidiaries has also been affirmed at 'B', with Recovery Rating of 'RR4'. Simultaneously all ratings have been removed from Rating Watch Negative, on which they were placed on July 28, 2017. The affirmation of the ratings follows the company's confirmation that it has secured GP517 million in construction finance for the development of its property project at One Grosvenor Square (1GSQ) in London's Mayfair, and successfully refinanced the bridging loan of GBP225 million. The Stable Outlook on Lodha's Long-Term IDR reflects the strong performance of Lodha's Indian operations, with healthy presales and cash collections in spite of challenging market conditions. KEY RATING DRIVERS London Refinancing Addressed: With the completion of its 1GSQ financing, Lodha has now achieved financial closure for both its London projects. The new loan will be drawn down in stages until the completion of the project, which the company expects will be by end-2019, with bullet principal repayment several years later. Lodha launched the project in May 2017 and has had GBP45 million of sales from the project at end-June 2017. Demand for Mayfair prime property has been less affected than other prime areas in Central London since the UK's vote to leave the EU last year, and supports Fitch view that sales for these projects will remain healthy. Earlier this year, the company also secured 30-month construction financing of GBP290 million for its project in London's Carey Street, with a bullet repayment of principal. Lodha launched sales of this project, which is smaller than 1GSQ, in April 2016, and had sold around GBP130 million of property by June 2017. Strong Sales, Cash Collection: Lodha continued to report robust property presales and cash collections in India for the fiscal first quarter ended 30 June 2017. Fitch expects around INR70 billion in presales and INR77 billion in cash collection for the fiscal year ending 31 March 2018 (FY18), compared with INR69.2 billion and INR76 billion, respectively, in FY17. The company's collections are speeding up due to a number of its large projects being completed this year. Sales were strong in FY17, driven by the Palava project in Maharashtra, which benefited from the Indian government's push to provide affordable housing that included providing tax and interest-cost incentives to buyers. Steady Leverage Expected: Fitch currently expects Lodha's leverage to remain steady at around 70% in the next two years, supported by the company's strong domestic performance. On a pro forma basis as of 31 March 2017, Fitch estimates that Lodha's consolidated leverage (defined as net adjusted debt/adjusted inventory) would have dropped to 72% if the London projects were amalgamated, from 80% without the amalgamation. DERIVATION SUMMARY Lodha's rating compares well against peers Indiabulls Real Estate Limited (IBREL, B+/Stable) and Xinyuan Real Estate Co., Ltd. (B/Stable). Lodha has a stronger business profile compared with IBREL with nearly twice the operating scale, and a better track record of sales and execution over the last three to four years. However, Lodha's leverage is considerably higher than IBREL's, which drives its lower rating. Xinyuan is a small regional developer in China that has weaker business risk compared with Lodha. A key weakness for Xinyuan is its need to constantly replenish its land bank amid rising land costs. However, Xinyuan's substantially lower leverage compared with Lodha balances out these risks. KEY ASSUMPTIONS Fitch's key assumptions within Fitch rating case for the issuer include: - India presales of around INR70 billion and INR90 billion in FY18 and FY19 - India cash collections of around INR75 billion-80 billion annually in FY18-FY19 - India construction cost of more than INR40 billion in FY18 - London properties' annual presales of around INR30 billion in FY18-FY20 - London properties' cash collections of around INR17 billion in FY19 and INR60 billion in FY20 - London properties' construction cost and other expenses of around INR12 billion annually in FY18-FY19 Key Recovery Rating Assumptions: - The recovery analysis assumes Lodha would be liquidated in a bankruptcy rather than continue as a going-concern because it is an asset trading company. - For the liquidation value, 100% of the London properties are consolidated into Lodha's assets and liabilities. - Accounts receivable includes unbilled revenue, which will be billed when the property projects complete construction milestones. Fitch has assumed a 75% advance rate against receivables and unbilled revenue. - Fitch has assumed a 100% advance rate against the book value of Lodha's consolidated adjusted inventory (including London assets). Fitch estimates that the market value of Lodha's inventory is 2.0x that of its book value. This is because Lodha has posted a gross profit margin of around 50% over the last few years. - All of Lodha's pro-forma consolidated debt at FYE17, apart from the outstanding US dollar senior notes, have been treated as prior-ranking or secured debt. Prior-ranking debt also includes the full drawdown of GBP750 million of London debt, which is allowed as a carve-out under the amended bond documentation consequent to the consent solicitation process completed in August. - The above estimates result in a recovery of between 91% and 100% of Lodha's secured and unsecured debt, corresponding to a 'RR1' Recovery Rating for the senior notes after adjusting for administrative claims. Nevertheless, Fitch has rated the senior notes at 'B' with a Recovery Ratings of 'RR4' because under Fitch's Country-Specific Treatment of Recovery Ratings criteria, India falls into 'Group D' of creditor friendliness. Instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Net debt/adjusted inventory sustained below 65% - EBITDA margin sustained above 30% (FY17: 36.7%) Developments That May, Individually or Collectively, Lead to Negative Rating Action - Net debt / adjusted inventory sustained at more than 80%- - A significant weakening in liquidity LIQUIDITY Satisfactory Liquidity: Lodha has approved and undrawn onshore credit lines of INR25 billion at 30 September 2017, compared with INR18 billion of onshore debt that is falling due in the next six months to end-March 2018. The company also has more than INR60 billion of completed inventory for which it has received the occupancy certificates from local authorities, part of which is unencumbered, and can be pledged for incremental financing if required. Fitch expects Lodha to generate negative free cash flow in FY18, for which Fitch believes the company to be able to secure financing given its business risk profile as one of India's leading homebuilders. MAA VINDHWASINI: CRISIL Reaffirms B+ Rating on INR1MM LT Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Maa Vindhwasini Mahila Prashikshan Evam Samaj Sewa Sansthan (MVMPESSS) for obtaining information through letters and emails dated September 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 1 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 Maa Vindhwasini Mahila Prashikshan Evam Samaj Sewa Sansthan. 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 Maa Vindhwasini Mahila Prashikshan Evam Samaj Sewa Sansthan is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. MVMPESSS, set up in 1993, is a not-for-profit society. It implements state and central government schemes in and around Deoria in Uttar Pradesh. MANISH FLEXIPACK: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Manish Flexipack A unit of Nagrani Wara Housing Pvt Ltd (MF) for obtaining information through letters and emails dated July 13, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 6.6 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 Manish Flexipack A unit of Nagrani Wara Housing Pvt Ltd. 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 Manish Flexipack A unit of Nagrani Wara Housing Pvt Ltd 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'. Indore based Manish Flexipack (MF) a unit of Nagarani Warehousing Pvt Ltd was set up in 2013. MF is engaged in the manufacturing and distribution of plastic bags, particularly BOPP bags, laminated/Un-laminated sacks, Leno Bags, PP/BE Bags and wide width fabrics. MAXOUT INFRASTRUCTURES: CRISIL Reaffirms D Rating on INR12MM Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Maxout Infrastructures Private Limited (MIPL) for obtaining information through letters and emails dated June 19, 2017 and July 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 8 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 Maxout Infrastructures 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 Maxout Infrastructures 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 D/CRISIL D'. MIPL, incorporated in 2007, undertakes railway projects, and develops roads, bridges, sewage water treatment plants, waste and waste water treatment plants and works, mainly in North India. The company is promoted and managed by Mr. Pramod Kumar Singh and his brother Mr. Praveen Kumar Singh. MAP REFOILS: Ind-Ra Affirms 'BB' LT Issuer Rating; Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed MAP Refoils India Limited (MRIL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR670 mil. (increased from INR319 mil.) Fund-based working capital limits affirmed with IND BB/Stable/IND A4+ rating; -- INR302.7 mil. (increased from INR127.5 mil.) Term loan limits due on December 2022 affirmed with IND BB/Stable rating; -- INR350 mil. Non-fund-based working capital limits assigned with IND A4+ rating. KEY RATING DRIVERS The ratings continue to reflect MRIL's moderate, albeit improved, credit profile. Revenue increased to INR4,813.3 million from INR1,482.1 million in FY16. The revenue improved as FY17 was the first full year of operations for MRIL's 200-tonne-per-day capacity (came online in October 2015), along with an additional 450-tonne-per-day capacity coming online in November 2016. In FY17, net leverage (Ind-Ra-adjusted net debt/operating EBITDAR) was 7.5x (11.3x), interest coverage (operating EBITDA/gross interest expense) was 2.4x (1.9x) and EBITDA margin was 3.2%. (2.6). The improvement in credit metrics, despite an increase in debt (FY17: INR1,427.9 million; FY16: INR441.2 million), was due to a rise in absolute EBITDA (INR182.5 million; INR38.8 million). The improvement in EBITDA margin was driven by scale benefits. FY17 financials are provisional in nature. The ratings also continue to reflect the company's presence in a highly fragmented and competitive edible oil industry and raw material price fluctuations due to the seasonal nature of availability of cotton seeds. Moreover, the company's liquidity continues to be tight, indicated by an average peak utilisation of its fund-based working capital facilities of 98% for the 12 months ended August 2017. The ratings, however, continue to be supported by MRIL's location advantage, given its plant is in Kadi, Gujarat, where the company's main raw material (i.e. cotton seeds) is available in abundance. Moreover, the ratings continue to be supported by its promoters' over three-decade experience in various cotton-related businesses (cotton ginning and pressing, trading of cotton bales and wash oils, and manufacturing of cotton seed oils) that leads to established relationships with customers and suppliers. RATING SENSITIVITIES Negative: A decline in revenue and/or profitability leading to a sustained deterioration in credit metrics and/or liquidity could lead to a negative rating action. Positive: Substantial revenue growth leading to a sustained improvement in profitability and credit metrics could lead to a positive rating action. COMPANY PROFILE Established in 2015, MRIL is engaged in the production of cotton seed oil at its plant in Kadi. The site has a daily installed capacity of 650 tonnes. Its registered office is in Ahmedabad, Gujarat. It also manufactures other edible oils such as groundnut oil, sun flower oil, soybean oil, mustard and corn oil. Its sales are made in Gujarat, Maharashtra, Punjab, Haryana, Rajasthan, Madhya Pradesh and others. MAYUR CONSTRUCTION: Ind-Ra Migrates B+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Mayur Construction Company's (MCC) 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: -- INR70 mil. Fund-based working capital limit migrated to non- cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; -- INR70 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 Sept. 16, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 1997, MCC is engaged in contract-based construction work, mainly for organisations such as National Highways Authority of India ('IND AAA'/Stable); Public Works Department, Jaipur; Central Public Works Department; Larsen & Toubro Limited; TATA Projects Limited ('IND AA-'/Stable); and various central and state government bodies. MITTAL COT: ICRA Moves 'B' Rating to Not Cooperating Category ------------------------------------------------------------- ICRA Ratings has moved the ratings for the INR6.50 crore bank facilities of Mittal Cot Fibers to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 6.50 [ICRA]B (Stable) ISSUER NOT Based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on limited or no updated information on the entity's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Mittal Cot Fibers, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Long experience of the promoters in the industry: The promoters have extensive experience in the cotton ginning industry, and their established relationships with customers, has helped the firm in the initial phase of operations. Credit weaknesses * Modest scale of operations and presence in intensely competitive industry: The firm faces stiff competition from mills located in the vicinity. Due to low bargaining power vis-Ö-vis its customers and high competition in the textile industry, the off take risk increases and the profitability may be impacted. MCF is a partnership concern, incorporated in June 2014, and has been promoted by Mr. Mahesh Kumar Mittal and his brothers; the partners have been associated with the cotton ginning and trading business for more than two decades. The firm manufactures lint from kapas (raw cotton) and undertakes pressing operation to produce cotton bales. Cotton seed, which is a by-product of the ginning operation, is sold to oil extraction units. The firm's manufacturing facility is located at Sendhwa, Madhya Pradesh and is equipped with 24 ginning mills and 1 press with a total ginning capacity of 16,906 metric tons per annum (MTPA). NEW ASIAN: ICRA Raises Rating on INR26.13cr LT Loan to B -------------------------------------------------------- ICRA Ratings has upgraded the long-term rating to [ICRA]B from [ICRA]D assigned to the INR26.13 crore (earlier INR29.50 crore) fund based bank facility of New Asian Infrastructure Development Private Limited. ICRA has also upgraded the long term rating to [ICRA]B for the unallocated limits of INR3.37 crore. The outlook on the long term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term loans 26.13 [ICRA]B(Stable); upgraded from [ICRA]D Unallocated limits 3.37 [ICRA]B(Stable); upgraded from [ICRA]D Rationale The rating upgrade takes into account the regularisation of debt servicing obligations by NAIDPL for the past six months. The ratings also derive comfort from presence of a power purchase agreement for the 7MW hydro power generation unit which was commissioned in January 2016 and from the capital subsidies to be received that are likely to support the cash flows to an extent. The ratings are, however, constrained by limited track record of operations of the hydro power project being developed by the firm. The project has witnessed significant time over run of more than three years which has further resulted in cost overrun of 27% over the budgeted cost. ICRA also notes the weak financial profile of the company characterized by low profit levels, highly leveraged capital structure given the debt-funded nature of the project and weak credit metrics. The revenues and cash flows of NAIDPL also remain vulnerable to the variability on plant load factor (PLF). Going forward, the ability of the company to improve PLF and thereby generate sufficient cash flows to fulfill its debt servicing requirement, and the availability of adequate water in the catchment area will be the key rating sensitivities. Further, timely support from the promoters for meeting future funding requirements, if any, will remain crucial for timely servicing of debt in the near term. Key rating drivers Credit strengths * Revenue and cash flow visibility following presence of power purchase agreement (PPA) for entire generation capacity: The company entered into a PPA with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a period of thirteen years from the date of commercial operation, i.e. January 2016 at a tariff of INR4.35 per unit. The agreement covers 100% off-take of the project, thus mitigating the market risks for the company. * Eligibility for capital subsidy from the Ministry of New and Renewable Energy (MNRE) likely to generate additional cash inflows for the project in the coming years: The hydro power unit is also eligible for a capital subsidy of INR4.90 crore from the Ministry of New and Renewable Energy (MNRE, formerly Ministry of Non-Conventional Energy Sources). The capital subsidy, which is expected to be received by FY2018, would be adjusted against the term loans as per the sanction terms. This subsidy is likely to provide some support to NAID's cash flows in the coming years. Credit weaknesses * Delays in debt servicing track record, despite the account having been regular in the recent past: The company had been delaying in repayment of interest as well as principal of the term loans availed following delays in commissioning of the project leading to low cash accruals. Commercial operations started from January 2016 and being in its initial phase of operations the cash accruals remained weak. However, from April 2017 the debt servicing requirements have been met in a timely manner supported by funding from promoters in the form of interest free unsecured loans. * Limited track record of operations with COD achieved in January 2016: The initial anticipated commercial operation date (COD) of the unit was October 2012. There were delays in commissioning of the project on account of delays in construction of transmission lines owing to lack of requisite approvals from the Maharashtra State Electricity Board (MSEB). From January 2016, the power unit commenced operations, and in FY2016, the unit generated 3.25 MU of electricity and reported revenues of INR1.37 crore. FY2017 was the first full year of operations of NAID and in FY2017, net units sold stood at 21.81 MUs and the company reported a sale of INR9.21 crore supported by a good monsoon which accelerated the generation of electricity. * Despite an improvement in the financial profile, it continues to remain weak as indicated by low profit levels, highly leveraged capital structure and weak credit metrics: NAIDPL reported an operating profit of INR1.10 crore in FY2016 and with the economies of scale it has improved to INR8.26 crore in FY2017. However, high depreciation and interest cost have dented the net profit and the company has reported net loss of INR1.41 crore in FY2016. In FY2017, the company has reported a net profit which remained subdued at 0.16 crore. The losses incurred in FY2016 have eroded the net worth which has led to a highly leveraged capital structure as reflected by a gearing of 29.32 times as on March 31, 2016 and 27.02 times as on March 31, 2017. Nevertheless, interest free unsecured loans from promoters to the tune of INR17.75 crore of the total debt of INR50.96 crore as on March 31, 2017, provides some comfort. Although the coverage indicators have improved in FY2017 following improvement in profit levels, the interest coverage indicator, as reflected by OPBDITA/Interest continues to be weak at 1.23 times as on March 31, 2017 following high interest charges. * Debt metrics for hydro power projects remain sensitive to PLF levels; as a result, any adverse variation in water availability may impact PLF and consequently affect the cash flows: The design energy of the project at 75% dependable year is 16.65 million units (MU), which results in a low PLF of 27%, and hence the hydrology risk is accentuated with the project being rain-fed in nature. ICRA notes that the risk of adverse weather fluctuations can result in inadequate water flow, which can affect the performance of the plant. New Asian Infrastructure Development Private Limited is a closely held company established in 2005 by Mr. Syed Abdur Rasheed and his sons, Mr. Syed Abdur Umair and Mr. Syed Abdur Zubair. NAID has developed a 7MW hydro power project at Nilwande village in the Ahmednagar district of Maharashtra, on a Build-Operate- Transfer (BOT) basis. The unit commenced operations from January 2016 after a time over-run of ~38 months. The company entered into a PPA with the MSEDCL in May 2013 for a period of 13 years from the commercial operation date (COD). The group company, New Asian Construction Company (NACC), undertakes construction of dams, power houses, pump houses, canals and bridges. NACC was rated at [ICRA]D in December 2016. P.D. AGRO: CRISIL Reaffirms 'B' Rating on INR8MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has been consistently following up with P.D. Agro Processors (PDAP) for obtaining information through letters and emails dated September 19, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 4.55 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 P.D. Agro Processors. 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 P.D. Agro Processors is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. PDAP was established in July 2013 as a partnership firm by Mr. Bhupender Agarwal and Ms. Kamla Agarwal. The firm processes non- basmati rice (Sona Masuri, Samba Masuri, HMT) at its unit in Rae Bareilly, Uttar Pradesh, which has installed milling and sorting capacity of 15 tonne per hour. PDAP commenced operations in January 2014. PACIFIC GLOBAL: CARE Assigns 'B' Rating to INR19.50cr LT Loan ------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Pacific Global (PG), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 19.50 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of Pacific Global (PG) are constrained by project execution risk, seasonality associated with procurement of raw material, competition from established players and constitution of entity being partnership firm. The rating however, derives strength from experienced and resourceful proprietor and strategic location of plant and receipt of approval from regulatory authorities. The ability of PG to timely execute the project within envisaged cost and subsequently stabilize its operations while managing its working capital requirement are the key rating sensitivities. Detailed description of the key rating drivers Key rating Weakness Project execution risk: Till August 31, 2017, the total expenditure incurred was INR15.64 crore (74.48% of the total project cost INR21.00 crore) which was mainly funded through contribution from partners and bank borrowings. Hence the entity faces risk of timely execution of balance project and subsequently achieving the envisaged level of sales in light of existing competition. Seasonality associated with procurement of raw material: Being in the food processing segment, Pacific Global has to depend on agro-based raw material availability of which is seasonal in nature, also susceptible to the vagaries of the Indian monsoon. As require raw material is an agricultural produce which has a seasonal characteristic, hence there remains risk of non- availability of material in case of changes happen in arrival of monsoon as well as wastage of raw material during storage process. Competition from established players: PG operates in a highly fragmented industry wherein large numbers of organized & un-organized players are present, where it has a very low bargaining power against both its customers as well as its suppliers. Presence in highly fragmented industry: The firm is exposed to intense competition in the manufacturing of food industry with the presence of numerous organized as well as unorganized players. This fragmented and highly competitive industry results into price competition thereby affecting the profit margins of the companies operating in the industry. Risk of withdrawal of funds due to partnership nature of its constitution: Pacific Global, being a partnership entity, involves with high risk of fund withdrawals from business. The entity is being managed by the partners and amounts in the form of drawings from business, shall be critical factor. Key rating Strengths Experienced and resourceful partners: PG was established in 2015 by Mr. Vikram Ashok Rupani and other partners. Further Mr. Vikram Rupani has done a course on manufacturing of pasta from Italy. Also it has experienced and qualified second line of management to carry out day-to-day operations having around 20 years of experience in FMCG Industry. Strategic location of plant: Key raw material for manufacturing of pasta is durum wheat, thus it shall benefit due to the plant being located in Madhya Pradesh, which has one of the highest cultivation of durum wheat thereby resulting in lower transportation cost for raw material which would accounts for around 80% of the total cost of sales. Further the entity has received approval from FSSAI. Pacific Global was established in the year 2015 by Mr. Vikram Ashok Rupani and other partners, Pacific Global has undertaken manufacturing high quality dry pasta (Spaghetti, Penne, Fusilli etc.) with total installed capacity of approx. 750 tonnes of pasta production per month at its plant located at Pitampur Madhya Pradesh. The key raw material namely Semolina (regular and duram wheat) will be sourced from local suppliers and others and sales will be done in domestic market as well exports to countries namely Bangladesh, Nepal, West Africa countries, Japan, Korea and Australia. PAL PRATEEK: CRISIL Reaffirms B+ Rating on INR5MM Loan ------------------------------------------------------ CRISIL Ratings has reaffirmed its rating on the long-term bank facilities of Pal Prateek Auto Sales Private Limited (PASL) at 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1 CRISIL B+/Stable (Reaffirmed) Electronic Dealer Financing Scheme (e-DFS) 5 CRISIL B+/Stable (Reaffirmed) The rating reflects PASL's modest scale of operations, and short track record of business with principal Nissan Motors India Pvt Ltd (NMPL); and modest networth and high leverage. These rating weaknesses are partially offset by extensive experience of promoters in automotive dealership business. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations, and short track record of business with NMPL: PASL's scale of operations has remained modest driven by its short track record of operations (operations commenced in 2012). Further, PASL operates in Uttarakhand region and faces competition from dealers of other original equipment manufacturers (OEMs) such as Maruti, Hyundai, etc. In fiscal 2017, net sale was INR 19 crores and is expected to 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 fiscals ended March 31, 2017 was 5.2-6.9 times and is expected to remain high over 4 times over the medium term. Strengths * Extensive experience of promoters in automotive dealership business: PASL's promoters have been in the automotive dealership business for around a decade through group company Pal Prateek Motors Pvt Ltd (PPML; rated 'CRISIL BB/Stable'). The promoters' experience has enabled PASL to gain an understanding of the customer profile and market in Uttarakhand region. Benefits from promoter experience is expected to continue over the medium term. Outlook: Stable CRISIL believes that PASL will continue to benefit over the medium term from its promoters' extensive experience. The outlook may be revised to 'Positive' if the company improves its financial risk profile, most likely because of ramp-up in operations and improvement in operating margin, or witnesses equity infusion by its promoters. Conversely, the outlook may be revised to 'Negative' if PASL's financial risk profile deteriorates, most likely because of low cash accruals, large working capital requirements, or debt-funded capital expenditure. PASL, established in 2012, is an authorised dealer for NMPL's passenger cars in the Kumaon region (Uttarakhand). It has one showroom and authorised service station at Haldwani in Nainital (Uttarakhand). The company is promoted by Mr. Suresh Pal and his wife, Mrs. Meera Pal. PASL commenced operations in August 2012. PASHUPATI CASTINGS: CRISIL Reaffirms B+ Rating on INR19.76MM Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Pashupati Castings Limited (PCL) 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. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 19.76 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 Pashupati Castings 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 Pashupati Castings 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'. Incorporated in 1996 in Aligarh and promoted by Mr. Yogendra Kumar Yadav and Mr. Ashok Kumar Yadav, PCL manufactures mild- steel ingots and TMT bars under the Pashupati TMT brand. POOJA INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR5MM Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Pooja Industries (Indore) (PI) for obtaining information through letters and emails dated July 13, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 1 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 Pooja Industries (Indore). 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 Pooja Industries (Indore) 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'. PI established in 1991 is a partnership firm engaged in the manufacturing and trading of torches and torch parts. Mr. Jagdish Agrawal, Narendra Agrawal and Mr. Aman Agrawal oversee the day to day operations of the firm. PII has its manufacturing facility at Indore, Madhya Pradesh and sells its torches under the 'Cosmos' brand. PRAGANA DANWAR: CRISIL Reaffirms B- Rating on INR6.0MM Term Loan ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Pragana Danwar Food Processor Private Limited (PDFPPL) 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. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 0.8 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 6.0 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 Pragana Danwar Food Processor 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 Pragana Danwar Food Processor Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B-/Stable. Incorporated in September 2011, PDFPPL is engaged in the business of milling of non-basmati rice. It also mills rice on job work basis for Food Corporation of India. The directors of the company are Mr Nag Banish Singh, Mrs Raj Mani Devi, Mr Vivek Singh Nag and Mr Vishal Singh Nag. The manufacturing facility is located in Patna, Bihar. PRAGYA RICE: ICRA Moves 'B+' Rating to Not Cooperating Category --------------------------------------------------------------- ICRA Ratings has moved the long-term rating for the INR8.00-crore bank facilities of Pragya Rice Mill (PRM) to the 'Issuer Not Cooperating' category. The long-term rating is now denoted as: "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 8.00 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on no updated information on the entity's performance since the time it was last rated in April 2016, which was based on detailed information. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with PRM, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non- cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key Rating Drivers Credit Strengths * Experienced promoters with long presence in the industry * Presence in a major rice growing area results in easy availability of rice * Rice being a staple food grain and the position of India as world's second largest producer and consumer, demand prospects for the industry are expected to remain good Credit Concerns * Intensely competitive nature of the industry characterized by a number of small players * Agro climatic risks, which can affect the availability of the paddy in adverse weather conditions. * Risk inherent in partnership firm. Incorporated in 2013, Pragya Rice Mill is a partnership firm engaged in milling, processing and sorting of non-basmati rice. The firm's plant at Raebareli (Uttar Pradesh) has a milling capacity of 4 tonnes per hour. The firm commenced commercial operations in September 2013 and primarily sells non basmati (Sama Mansoori) rice through export as well as domestic sales. The direct exports are made to Nepal and the balance is sold through exporters to countries like Dubai, Saudi Arabia etc. PREMIER ALLOYS: CRISIL Assigns 'B' Rating to INR7MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the long-term bank loan facility of Premier Alloys (PA). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B/Stable (Assigned) The rating reflects a modest scale of operations in the intensely competitive steel products industry and susceptibility to volatility in steel prices. These weaknesses are partially offset by the extensive industry experience of the partners. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in an intensely competitive industry: Revenue was a modest INR18.55 crore in fiscal 2017. The firm is exposed to intense competition in the mild steel (MS) ingots industry, which is highly fragmented, thus putting further pressure on the margin. * Susceptibility to volatility in steel prices: Steel prices have been highly volatile in the past few years, thus impacting profitability. Prices are expected to remain volatile over the medium term. Strength * Extensive industry experience of the partners: The partners have been engaged in manufacturing and trading in steel products for over 20 years. This has enabled the firm to grow in scale and maintain an established relationship with customers and suppliers. Outlook: Stable CRISIL believes PA will continue to benefit from the extensive industry experience of its partners. The outlook may be revised to 'Positive' in case of improvement in the scale of operation and operating profitability, leading to higher cash accrual. The outlook may be revised to 'Negative' in case of significant debt- funded capital expenditure, a stretched working capital cycle, or a decline in revenue or profitability leading to lower-than- expected cash accrual, resulting in deterioration in liquidity. Established in 2005, PA is a Palakkad, Kerela based partnership firm engaged in the manufacturing of MS Ingots. Net Profit was INR0.18 crore on net sales of INR20.95 crore in fiscal 2017, vis-a-vis PBT of INR0.17 crore on net sales of INR17.45 crores in fiscal 2016. PRIME TECHNOPLAST: Ind-Ra Moves D Rating to Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Prime Technoplast Private Limited's (PTPL) Long-Term Issuer Rating to 'IND D' from 'IND BB(suspended)' while migrating the ratings to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow- ups by the agency. Thus, the rating is on the basis of best available information. The rating will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR270 mil. Fund-based working capital limit (Long-term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating; -- INR46.5 mil. Long-term loan (Long-term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund-based working capital limits (Short-term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information. KEY RATING DRIVERS The downgrade reflects PTPL's delays in debt servicing during the 12 months ended September 2017 due to tight liquidity position. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months would be positive for the ratings. COMPANY PROFILE PTPL is a private limited company, incorporated in April 2009. It is managed by Mr. Mehtab Hussain, the CEO and chairman, and his close family members. The company manufactures woven sacks made of high density polyethylene or polypropylene. The sacks are used for the packaging of food grains, sugar, chemicals and fertilisers, among others. The company has its manufacturing plant in Howrah, West Bengal, with an installed capacity of 18,000 bales per month. PUPNEJA RICE: CRISIL Reaffirms D Rating on INR13.15MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Pupneja Rice Mills (PRM) 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. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13.15 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan .20 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Warehouse Financing 6.00 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 Pupneja Rice Mills. 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 Pupneja Rice Mills 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'. PRM was established in 1982 as a partnership firm in Jalalabad, Punjab. The firm was founded by Mr. Suraj Chand, along with his son, Mr. Hari Chand, and their partner, Mr. Ramesh Kumar. In 2006, Mr. Suraj Chand and Mr. Ramesh Kumar retired from the firm, and subsequently, Mr. Hari Chand's sons, Mr. Sunny Pupneja and Mr. Rajan Pupneja took over the business. PRM hulls and mills paddy rice. It has a processing mill with a capacity of 5 tonne per hour. RADIANT BIZCOM: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Radiant Bizcom Private Limited's (RBPL) Long-Term Issuer Rating to 'IND D from 'IND BB-' while simultaneously migrating the ratings to the non- cooperating category. The Outlook was Stable. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is on the basis of best available information. The rating will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR250 mil. Fund-based facilities (Long-term/Short-term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information KEY RATING DRIVERS The rating action reflects RBPL's delays in debt servicing, details of which are not available. COMPANY PROFILE Incorporated in August 2014, RBPL is engaged in the business of television and digital content, including digi beta tapes, video tapes and cassettes. It has its own library and owns the rights to 670 episodes across various genres such as drama, comedy, thriller and action in regional Indian languages. RANGOTSAV SAREES: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rangotsav Sarees Pvt Ltd'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 ratings will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR140 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB-ISSUER NOT COOPERATING) rating; -- INR10 mil. Non-fund-based working capital limits (Standby Line of credit) migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating; and -- INR7.50 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 April 24, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Rangotsav Sarees was incorporated in June 1999. The company manufactures and trades sarees and salwar suits. The company has its showroom and factory at Park Street and Garment Park. Narendra Kumar Agarwal, Pista Devi Agarwal and Suman Agarwal are the directors of the company. REGENCY GANGANI: ICRA Lowers Rating on INR49.71cr Loan to D ----------------------------------------------------------- ICRA Ratings has revised its long-term rating on the INR49.71- crore (reduced from INR57.40 crore) fund-based facilities of Regency Gangani Energy Private Limited to[ICRA]D from [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 49.71 [ICRA]D; revised from [ICRA]B Rationale The rating revision factors in delays in debt servicing by the company on account of stretched liquidity position. The rating continues to be constrained by high capital cost of the project (INR116 crore as against originally expected cost of INR70 crore) on account of cost over runs due to cloud bursts that have occurred twice in the past few years. The rating also continues to factor in the hydrological risks due to shortage of water or loss of generation due to silting. ICRA takes note of company's qualified and experienced promoters and Trust and Retention Account (TRA) mechanism, which is in place for debt servicing. Going forward, the company's ability to improve its liquidity position and service its debt in a timely manner will be the key rating sensitivity. Key rating drivers Credit strength * Experienced management who have successfully executed various hydro projects: The Regency Group, which is based in Paonta Sahib, Himachal Pradesh, has commissioned four hydro power projects with a total commissioned capacity of 27.50MW. Credit weaknesses * Stretched liquidity position leads to delays in debt servicing: There have been recent instances of delays in repayment of term loans owing to stretched liquidity position. * RGEPL is prone to hydrology risk: The company is prone to hydrological risks due to shortage of water or loss of generation due to silting. Given that the revenues of the company are linked to actual unit sales, this exposes the company to the risk of cash flow mismatches. RGEPL is an Independent Power producer (IPP) promoted by the Regency group to develop, own and operate a 9.5 MW small hydro power (SHP) project in Uttarkashi District of Uttarakhand. The Regency group, which is based in Paonta Sahib, Himachal Pradesh, commenced operations by setting up a calcium carbide manufacturing unit in a company called Regency Carbide Limited (RCL). Subsequently, the company diversified into power generation mainly for meeting the captive power requirement of RCL. Thereafter, the group has commissioned a number of other units as well, with a total commissioned capacity of 27.50MW. In FY2017, RGEPL reported a net profit of INR0.42 crore on an operating income (OI) of INR15.68 crore, compared with a net profit of INR0.50 crore on an OI of INR17.07 crore in the previous year. REGENCY YAMUNA: ICRA Lowers Rating on INR21.37cr Loan to 'D' ------------------------------------------------------------ ICRA Ratings has revised its long-term rating on the INR21.37- crore (reduced from INR26.00 crore) fund-based facilities of Regency Yamuna Energy Limited to[ICRA]D from [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 21.37 [ICRA]D; revised from [ICRA]B Rationale The rating revision factors in delays in debt servicing by the company on account of stretched liquidity position. The rating continues to be constrained by high capital cost of the project (INR66 crore as against originally expected cost of INR31.42 crore) on account of cost over runs due to cloud bursts that have occurred twice in the past few years. The rating also continues to factor in the hydrological risks due to shortage of water or loss of generation due to silting. ICRA takes note of company's qualified and experienced promoters and Trust and Retention Account (TRA) mechanism, which is in place for debt servicing. Going forward, the company's ability to improve its liquidity position and service its debt in a timely manner will be the key rating sensitivity. Key rating drivers Credit strength * Experienced management who have successfully executed various hydro projects: The Regency Group, which is based in Paonta Sahib, Himachal Pradesh, has commissioned four hydro power projects with a total commissioned capacity of 27.50MW. Credit weaknesses * Stretched liquidity position leads to delays in debt servicing: There have been recent instances of delays in repayment of term loans owing to stretched liquidity position. * RGEPL is prone to hydrology risk: The company is prone to hydrological risks due to shortage of water or loss of generation due to silting. Given that the revenues of the company are linked to actual unit sales, this exposes the company to the risk of cash flow mismatches. RYEL is an Independent Power producer (IPP) promoted by the Regency group to develop, own and operate a 5.70 MW small hydro power (SHP) project in Uttarkashi District of Uttarakhand. The Regency group, which is based in Paonta Sahib, Himachal Pradesh, commenced operations by setting up a calcium carbide manufacturing unit in a company called Regency Carbide Limited (RCL). Subsequently, the company diversified into power generation mainly for meeting the captive power requirement of RCL. Thereafter, the group has commissioned a number of other units as well, with a total commissioned capacity of 27.50MW. In FY2017, on a provisional basis, RYEL reported a net profit of INR0.63 crore on an operating income (OI) of INR7.45 crore, compared with a net profit of INR0.57 crore on an OI of INR8.31 crore in the previous year. S. A. PLYWOOD: CRISIL Lowers Rating on INR12.50MM Loan to 'D' ------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank loan facilities of S. A. Plywood Industry Private Limited (SAPIPL) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .25 CRISIL D (Downgraded from 'CRISIL B+/Stable') Cash Credit 12.50 CRISIL D (Downgraded from 'CRISIL A4') Long Term Loan 2.79 CRISIL D (Downgraded from 'CRISIL A4') Proposed Long Term Bank Loan Facility 3.46 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects delay in servicing of the term loan obligation. The ratings also reflect modest scale and working capital intensity in operations. These rating weaknesses are partially offset by the extensive experience of the promoters in the plywood industry. Key Rating Drivers & Detailed Description Weakness * Working capital intensive operations: Sizeable gross current assets (around 333 days as on March 31, 2017) continue to keep working capital under pressure. * Modest scale of operations and intense competition: Intense competition in the plywood industry constrains scalability: revenue was modest around INR25 crore in fiscal 2017. Strengths * Extensive experience of the promoters in the plywood industry: The promoters have vast experience of more than 35 years in the plywood industry. Over the years, the promoters have gained good insight of the industry and have managed to establish market in West Bengal, Bihar, and Odisha. It also has a marginal presence in Andhra Pradesh (AP) and Rajasthan. The company markets its products under the brands Globe, Glider and Grand which are widely known, especially in eastern India. The company has a network of around 200 dealers across various states. SAPIPL, formed in 1979 as a partnership concern by Mr Arun Saha and Mr Salil Shah, was reconstituted as a private limited company in 2009. The company manufactures plywood, block board and flush door at its facility in Mathabhanga in Coochbehar (West Bengal). The company sells its products under the brands Globe, Glider and Grand. SATISH STEEL: CRISIL Reaffirms B+ Rating on INR6.5MM Cash Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank facilities of Satish Steel Re Rolling Mills (SS) at 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Reaffirmed) Cash Credit 6.5 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect weak financial risk profile marked by high TOLTNW and weak debt protection metrics along with small scale of operation. These weaknesses are partially offset by proprietor's extensive experience and long standing relationships with customers and supplier and moderate working capital intensive operations. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: The financial risk profile is constrained by high TOLTNW ratio of 3.28 times as of March 2017. The debt protection metrics remained average with interest coverage and net cash accrual to total debt ratios of 1.3 times and 0.03 time, respectively, in fiscal 2017. * Small scale of operation: SS has dealership for SAIL. The company did revenues of INR48.71 crores in fiscal 2017 at an operating margin of 2.0%. Strengths * Proprietor's extensive experience and longstanding relationships with customers and suppliers: The proprietor's experience of over three decades in the steel industry has helped establish longstanding relationships with customers and suppliers. SS has been authorized vendorer for Steel Authority of India for last 3 decades. * Moderate working capital requirement: Operations are working capital intensive as indicated by moderately high gross current assets of 155 days as on March 31, 2017. This is primarily attributable to high inventory of 70 days Outlook: Stable CRISIL believes SS will continue to benefit over the medium term from the longstanding presence of promoters in the steel industry. The outlook may be revised to 'Positive' in case of substantial growth in revenue and profitability, along with improvement in debt protection metrics. Conversely, the outlook may be revised to 'Negative' if the financial risk profile weakens due to lengthening of working capital cycle or lower- than-expected profitability margins, Established in 1986, SS promoted by the Delhi-based Kanodia family, is an authorised vendor of Steel Authority of India Ltd (SAIL), and trades in iron and steel products such as cold-rolled coils and sheets. Operations are managed by Mr Sushil Kanodia and his wife, Ms Mamta Kanodia. SHREE RAJ: CARE Reaffirms B+ Rating on INR5.0cr LT Loan ------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Shree Raj Metalloys Private Limited (SMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 5.00 CARE B+; Stable Reaffirmed Short term Bank Facilities 1.50 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of SMPL continue to be constrained by its relatively small scale of operation, volatility in prices of trading materials and forex rates, stiff competition due to fragmented nature of the industry with presence of many unorganized players, working capital intensive nature of business and leverage capital structure. The ratings, however, continue to draw comfort from experienced promoter with long track record of operations and strategic location of the unit. Going forward, the ability of the company to increase the scale of operations and profitability margins and ability to manage working capital effectively would be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Relatively small scale of operation: SMPL is a relatively small player in the iron & steel industry with total operating income and PAT of INR12.24 crore and INR0.08 crore, respectively, in FY17 (Prov.). Furthermore, total capital employed of the company, though increased as on March 31, 2017 (Prov.), but remained low at INR10.27 crore as against INR9.12 crore as on March 31, 2016. As per management, the company has booked the revenue of INR5 crore during 5MFY18. Volatility in prices of trading materials and forex rates: SMPL is engaged in trading of iron and steel related products the prices of which is subject to market fluctuations. Since, cost of traded material is the primary cost driver of SMPL accounting for about 77% of the total cost of sales during FY16 any volatility witnessed in the prices of traded products can narrow the profitability margins. Further, the company does not have any long term agreements with the suppliers and procures goods at market price which is subject to price fluctuation risk. Further around 80% of the total purchase of SMPL are met through import from Singapore, Thailand, Korea, Japan, U.K., Malaysia, thus, exposing SMPL to foreign exchange rate fluctuation risk as well. SMPL has availed forward contract to cover around 33% of the forex risk and does not have any delineated policy to hedge the residual forex risk and management enters into forward contracts based on market conditions for the same. Further, being net importer of goods, the impact of rupee depreciation can have an impact on SMPL's operational performance. Rationale Stiff competition due to fragmented nature of the industry with presence of many unorganized players: The spectrum of the steel industry in which the company operates is highly fragmented and competitive marked by the presence of numerous players in northern and eastern India. Hence the players in the industry do not have pricing power and are exposed to competition induced pressures on profitability. This apart, SMPL's products being steel related, it is subjected to the risks associated with the industry like cyclicality and price volatility. Working capital intensive nature of business: SMPL's business, being trading of iron and steel related products is working capital intensive marked by high average inventory period and moderate collection period. The average inventory holding period remained high at 156 days in FY17 (Prov.) on the back of increasing inventory of the finished products due to lower off take on account of sluggish demand on the back of slowdown in the steel sector. Furthermore, the average collection period also remained moderately high at 95 days during FY17 (Prov.) and the same deteriorated during FY17 (Prov.) over FY16 on the back of the company's strategy to provide higher credit period to customers and to attract them and retain them on the back of increased competition. The aforesaid reason led to high utilization of its bank limit at around 95% during the last 12 months ended on Aug. 31, 2017. Leveraged capital structure: The capital structure of the company deteriorated as on March 31, 2017 with deterioration in overall gearing to 2.38x vis-a-vis 1.96x March 31, 2016 due to availment of higher working capital limits during the period. Moreover, total debt to GCA, deteriorated to 53.40x in FY17 (Prov.) as against 52.05x in FY16 owing to increase in total debt level on account of higher usage of working capital limits. Key Rating Strengths Experienced promoter with long track record of operations: Mr. Navin Bansal, Mrs. Navita Bansal and Ms. Preksha Bansal are the directors of SMPL and looks after the overall management of the company. Mr. Navin Bansal having more than two decades of experience in the iron & steel industry and are ably supported by other directors, Mrs. Navita Bansal and Ms. Preksha Bansal along with the team of experienced professional who have rich experience in the same line of business. Further, SMPL commenced commercial operation since July, 1991 and accordingly has a long track record of commercial operations. Strategic location of the unit: SMPL's unit is located at Kolkata which is in the vicinity of industrial belt of Durgapur and Jamshedpur where the trading materials are available in abundance. The proximity to the trading material sources reduces the transportation cost to the company. Besides, the region has large number of steel manufacturers as well as end users. Hence, the company has a large ready market to sell its products. SHREE SITA: CRISIL Reaffirms 'B+' Rating on INR6MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Shree Sita Ispat and Power Private Limited (Shree Sita) for obtaining information through letters and emails dated June 9, 2017 and July 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 0.5 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 Shree Sita Ispat and Power 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 Shree Sita Ispat and Power 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'. Shree Sita was incorporated in 2004, promoted by Mr. Manoj Agarwal along with his relative, Mr. Kailash Agarwal. The company manufactures sponge iron with a capacity of 1 kiln of 100 tonne per day. SRIBALAJI HATCHERIES: ICRA Moves C Rating to Not Cooperating ------------------------------------------------------------ ICRA Ratings has moved the ratings for the INR6.50 crore bank facilities of Sribalaji Hatcheries Private Limited (SHPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]C ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash Credit 5.00 [ICRA]C ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated Limits 1.50 [ICRA]C ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on no updated information on the entity's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with SHPL, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Experienced Promoters: The promoters have significant experience in the poultry industry * Association with Venkateshwara Hatcheries: The company has close association with Venkateshwara Hatcheries, which commands major market share in the domestic broiler and layer market Credit weaknesses * Modest scale of operations: Modest scale of operations in the poultry breeding industry * Raw Material Volatility: The volatility in cost of feed is expected to adversely affect profitability * Weak capital structure: The capital structure is weak characterized by negative net-worth levels * High competitive intensity: The company faces competition from both large and small breeders; expected to continue, given the low entry barriers in the poultry business M/s. Balaji Hactheries was founded as a partnership firm during the year 1971 by Dr. V Sundar Naidu along with his family members. The firm was changed into a private limited company during the year 2013 and the name was changed to Sri Balaji Hatcheries Private Limited (SBHPL). The group companies - V.S.N. Hatcheries Private Limited (VHPL), Balaji Livestock & Poultry Breeders Private Limited and Balaji Hatcheries Private Limited - were amalgamated into SBHPL effective from April 1, 2014. The company is engaged in breeding broiler and layer chickens (exclusive layer franchise of Venkateshwara Hatcheries Private Limited) as well as feed processing. SRI MANAKULA: ICRA Moves B+ Rating to Not Cooperating Category -------------------------------------------------------------- ICRA Ratings has moved the long-term and short-term ratings for the INR174.57 crore bank line facilities of Sri Manakula Vinayaga Educational Trust to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA] B+ (Stable)/ "[ICRA] A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit-Fund 149.19 [ICRA]B+ (stable) ISSUER Based NOT COOPERATING; Rating moved to the 'Issuer not Cooperating' category Unallocated 10.93 [ICRA]B+ (stable)/A4 ISSUER (Long-term/ NOT COOPERATING; Rating Short-term) moved to the 'Issuer not Cooperating' category BG-Non fund based 14.45 [ICRA]A4 ISSUER NOT COOPERATING; Rating moved to the 'Issuer not Cooperating' category Rationale The rating is based on no updated information on the entity's performance since the time it was last rated in March 30, 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Sri Manakula Vinayaga Educational Trust, ICRA has been trying to seek information from the company so as to undertake a surveillance of the ratings, but despite repeated requests by ICRA, the company's management has remained non- cooperative. In the absence of requisite information, ICRA's Rating Committee has taken a rating view based on best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the company's rating is now denoted as: "[ICRA]B+/A4 ISSUER NOT COOPERATING". The lenders, investors and other market participants may exercise appropriate caution while using this rating, given that it is based on limited or no updated information on the company's performance since the time it was last rated. Key Rating Drivers Credit Strength * Long and established track record of the trust in education sector: The trust was established in 1996 and the Engineering College and Medical College was setup in the year 1998 and 2006 with various disciplines. * Healthy increase in total number of students: Regular investment by the trust in infrastructure and accreditations has helped in regular increase in the new admissions. The increase in sanctioned intake of under-graduate courses over the years has contributed to growth in revenues Credit Challenge * Significant amount of Capital-expenditure incurred for infrastructure development: Significant debt-funded capital expenditure incurred towards expansion of infrastructure facility which might exert pressure on the capital structure and debt protection metrics. * High regulatory intensity of the educational sector: The revenue of the trust continues to remain vulnerable on back of tight regulatory structure in the higher education sector in India. Sri Manakula Vinayaga Educational Trust (SMVET) was formed in 1996, under the leadership of Mr. N. Kesavan with a view to provide technical and medical education to the weaker sections of the society. The first educational institution to be opened under the aegis of this trust was Sri Manakula Vinayagar Engineering College (MVEC). Later, in 2006, the trust established Sri Manakula Vinayagar Medical College Hospital (MVMCH) with a first batch of 150 students. MVMCH also has a 900-bed hospital attached to the college, which has witnessed healthy occupancy and outpatient flow. In all, the Trust operates six colleges in the Union Territory of Pondicherry spanning engineering, nursing, teacher training, medical and polytechnic courses with a total student base of more than 3,000. The Trustees also run the Mailam Subramaniya Swami Educational Trust which operates an engineering college in Tamil Nadu. SRI SAI SHIVANAGERE: ICRA Moves 'B' Rating to Not Cooperating ------------------------------------------------------------- ICRA Ratings has moved the long term rating outstanding of [ICRA]B to the INR5.60-crore long term unallocated facilities of Sri Sai Shivanagere Solar Power Private Limited (SSSSPL) to 'Issuer not cooperating' category. The outlook on the long term rating is 'Stable'. The rating is now denoted as '[ICRA]B (Stable) ISSUER NOT COOPERATING'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 5.60 [ICRA]B (Stable); ISSUER NOT Unallocated COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating is based on no updated information on the company's performance since the time it was last rated in March 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Sri Sai Shivanagere Solar Power Private Limited, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit Strengths * Long term power purchase agreement in place: The Company has entered into a 25 year power purchase agreement (PPA) with Bangalore Electricity Supply Company (BESCOM) with a high feed-in tariff of INR8.40 INRper unit. * Favorable Regulatory Environment for private renewable power generation: Favourable regulatory environment with both central power regulators and KERC (Karnataka Electricity Regulatory Commission) incentivizing private renewable power generation. Credit Weaknesses * Small scale of operations: The Company is expected to have small scale of operations with only 1.1 MW of power generation capacity limiting economies of scale. * Debt protection metrics remain sensitive to plant load factor (PLF): The debt protection metrics for solar power projects remain sensitive to PLF levels; as a result, any adverse variation in weather conditions may impact PLF and consequently, affect the cash flows. Sri Sai Shivanagere Solar Power Private Limited (SPL) was incorporated in June 2015. SPL has set up a 1.1 MW solar power plant at Kallukote Village, Sira Taluk, Tumkur District, Karnataka. The Company has entered into a 25 year power purchase agreement (PPA) with Bangalore Electricity Supply Company (BESCOM) with a feed-in tariff of INR8.40 INRper unit. SUSAAH LABORATORIES: CRISIL Reaffirms B+ Rating on INR4.25MM Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Susaah Laboratories Private Limited (SLPL) for obtaining information through letters and emails dated July 18, 2017 and August 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4.25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 3.75 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 Susaah Laboratories 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 Susaah Laboratories 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'. Established in 2007 as a private limited company, SLPL is a manufacturer of active pharmaceutical ingredients (APIs) and bulk drug intermediaries. Based in Hyderabad, Telangana, the company is promoted and managed by Mr. K Srinivas. T.K. TRADERS: CRISIL Reaffirms 'B' Rating on INR1.5MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank loan facilities of T.K. Traders (TKT) at 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.5 CRISIL B/Stable (Reaffirmed) Letter of Credit 4.5 CRISIL A4 (Reaffirmed) The ratings continue to reflect a modest scale of operations and susceptibility to intense competition in the cement industry. These rating weaknesses are partially offset by the extensive industry experience of the proprietor. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: The firm's scale of operations is modest as reflected in estimated revenues of INR25.6 crore in fiscal 2017. * Susceptibility to intense competition: The firm is exposed to intense competition from both organised and unorganised segments in the cement industry. Strength * Extensive industry experience of the proprietor: The proprietor, Mr Godwin Xavier, has close to 10 years of experience in trading in and manufacturing of bricks. Outlook: Stable CRISIL believes TKT will continue to benefit from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' if higher-than-expected cash accrual considerably strengthens the financial risk profile. The outlook may be revised to 'Negative' if low cash accrual, or deterioration in working capital management weakens the financial risk profile. Set up in 2010 by Mr Xavier, TKT trades in cement. TANMAY POLYFIMS: ICRA Moves 'B-' Rating to Not Cooperating ---------------------------------------------------------- ICRA Ratings has moved the ratings for the INR10.50 crore bank facilities of Tanmay Polyfims Private Limited (TPPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as: "[ICRA]B- (Stable)/[ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash 3.00 [ICRA]B-(Stable) ISSUER NOT Credit CO-OPERATING; Rating moved to the 'Issuer Not Co-operating' category Fund-based-Term 3.50 [ICRA]B-(Stable) ISSUER NOT Loan CO-OPERATING; Rating moved to the 'Issuer Not Co-operating' category Non fund based- 4.00 [ICRA]A4 ISSUER NOT Letter of Credit CO-OPERATING Rating moved to the 'Issuer Not Co-operating' category Rationale As part of its process and in accordance with its rating agreement with TPPL, ICRA has been trying to seek information from the company so as to undertake a surveillance of the ratings, but despite repeated requests by ICRA, the company's management has remained non-cooperative. In the absence of requisite information, ICRA's Rating Committee has taken a rating view based on best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the company's rating is now denoted as: "[ICRA] B- (stable)/A4 ISSUER NOT COOPERATING". The lenders, investors and other market participants may exercise appropriate caution while using this rating, given that it is based on limited or no updated information on the company's performance since the time it was last rated. Key rating drivers Credit strengths * Diversified product profile: The company has diversified product portfolio consisting of various types of plastic films namely; stretch films, flexible films, shrink films, cling films, agriculture films, three layer laminated flexible films, garbage bags, nursery bags etc. The company has also forayed into liquid packing films, BOPP bags (biaxially oriented polypropylene) and LDPE bags (low-density polyethylene) for packaging industry and protective plastic films (scratch guards). * Moderate Capacity Utilization in the past: The manufacturing capacity of the company stood at ~100 ton per month during FY2015 and the company has utilized ~64% indicating moderate capacity utilisation. Credit weaknesses * Modest scale of operations, limited track record: The operations of the company were initiated in June 2013 with the manufacture of stretch plastic films. In its first 10 months of operation, the company recorded an operating income of INR4.15 crore. The company completed its first full year of operation in FY2015 and recorded an operating income of INR9.98 crore backed by increase in volumes sold. * Profitability vulnerable to raw material price and foreign currency fluctuations: The raw material required includes various types of polyethylene granules namely, HDPE (High density Polyethylene), LDPE (High density Polyethylene) and PP (Polypropylene) depending upon the quality requirements of customers. The company procures almost 70% of its raw material requirements from Middle East nations. The domestic procurement of raw materials is majorly done from Reliance Industries limited. The raw material price remains contingent on crude oil prices. With the absence of export operations providing natural hedging and active hedging strategies followed by the company, operations of the company are highly exposed to currency risk. * Stretched financial profile with net losses, leverage capital structure and high working capital intensity in the past: The company had incurred losses at an operating level in FY2014 and FY2015. In FY2014, high raw material consumption cost and high input cost along with other preliminary expenses led to an operating loss of INR0.75 crore. Further, in FY2015, relatively high input cost on lower operating base due suboptimal capacity utilization levels led operating loss of INR0.46 crore. The company's net worth stood negative as of March 31,2015 owing to significant accumulated losses from the past, leading to stretched capitalization and coverage indicators The losses in the past had eroded the company's net worth, which stood negative at INR1.45 crore as on March 31, 2015 leading to a leveraged capital structure. However, a significant portion (55%) to the tune of INR4.91 crore of total debt comprise of unsecured loan from the directors. The operating losses in past had kept coverage indicators under pressure. The debt servicing has been majorly funded through infusion of additional funds through unsecured loan by the promoters. * High working capital intensity of operations: The company's working capital intensity of operations for FY2015 stood high at 34%. The same was on account of liberal credit terms offered to customers to seize entry in the competitive market against a relatively tight credit period from suppliers in addition to high inventory levels of around two months. * Intense competition, given the low complexity of work involved: The company faces stiff competition from other unorganised players supplying plastic film packaging material which limits its pricing flexibility and bargaining power with customers, thereby putting pressure on its revenues and margins. Established in 1987, VFPL is primarily engaged in manufacturing of rubber coated fabrics, rubber sheets and inflatables. The company has its plant in Khamgaon, Maharashtra with installed capacity of ~14 lakh meters annually. The company mainly provides cotton and nylon rubber coated fabrics and also has facility to provide finished end products like waterproof sheets, air pillows, water bags etc. VINAYAK POLYMERS: CRISIL Reaffirms B+ Rating on INR20MM Loan ------------------------------------------------------------ CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Vinayak Polymers Inc. (VPI). The ratings continue to reflect the firm's weak financial risk profile because of capital structure and weak debt protection metrics; exposure to volatility in raw material prices; and working capital-intensive operations. These weaknesses are partially offset by the extensive experience of the promoters in the petrochemical trading business, and diversified product and customer base. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+ (Reaffirmed) Letter of Credit 5 CRISIL A4 (Reaffirmed) Analytical Approach Unsecured loans of INR2.4 crore have been treated as neither debt nor equity as they are subordinated to bank debt and are likely to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: Low profitability and sizeable working capital debt continue to keep financial risk profile weak. Total outside liabilities to tangible networth ratio was 5.7 times as on March 31, 2017. * Susceptibility to volatility in raw material prices, and working capital-intensive operations: Absence of any price agreement with suppliers and customers renders profitability susceptible to volatility in raw material prices. Operations are working capital intensive, driven by sizeable receivables. Strengths * Extensive experience of the promoters: The promoters' experience of over three decades in the petrochemical trading business should help the firm ramp up operations over the medium term. The promoters' experience enabled the firm to become a consignment stockist for GAIL (India) Ltd (GAIL) and Brahmaputra Cracker and Polymer Ltd (BCPL) for Andhra Pradesh and Hyderabad in fiscal 2018. The firm is likely to open a branch in Mumbai in fiscal 2018. * Diversified product and customer base: Expansion in product portfolio and customer base will continue to strengthen business risk profile over the medium term. Outlook: Stable CRISIL believes VPI will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is a substantial and sustained improvement in financial risk profile because of fresh capital infusion or higher-than-expected cash accrual. The outlook may be revised to 'Negative' if stretch in working capital cycle, low cash accrual, or large capital expenditure weakens financial metrics, including liquidity. Set up in 2007 by Mr. Rahul Agarwal and his family members, VPI trades in polymers such as polypropylene (PP), polyethylene (PE), and high-density polymers (HDP). The firm trades polymers of GAIL, Indian Oil Corporation Ltd (IOCL), and Haldia Petrochemicals Ltd (HPL). It also procures from domestic traders and companies based in Korea, Taiwan, Saudi Arabia, and Iran. It is a consignment stockist for GAIL and BCPL. Profit after tax (PAT) was INR80 lakh and operating income was INR181 crore in fiscal 2017, against a PAT of INR65 lakh on operating income of INR199 crore in fiscal 2016. VIRAJ SPINNERS: CRISIL Raises Rating on INR31.99MM Loan to BB- -------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of Viraj Spinners Limited (VSL) to 'CRISIL BB-/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8.01 CRISIL BB-/Stable (Upgraded from 'CRISIL B/Stable') Long Term Loan 31.99 CRISIL BB-/Stable (Upgraded from 'CRISIL B/Stable') The revision reflects CRISIL's expectation of an improvement in business risk profile, backed by growth in revenue and stable operating margin. On a provisional basis, revenue and operating margin of INR61.8 crore and 18.8% were reported in fiscal 2017, vis-a-vis INR43.2 crore and 24%, respectively, in the previous fiscal. Growth will continue to be aided by an increase in exports and stable domestic demand for cotton yarn. The upgrade also factors in comfortable liquidity, with expected cash accrual of INR7 crore, being sufficient to cover debt obligation of INR3.8 crore for fiscals 2018 and 2019. Moderate bank limit utilisation (below 80% over the 12 months through August 2017), and timely enhancements, should also enhance financial flexibility. Working capital management will however, be monitored closely in the medium term. The rating continues to reflect the extensive experience of promoters in the cotton spinning industry, strategic location of the plant and comfortable debt protection metrics. These rating strengths are partially offset by modest scale of operations, exposure to intense competition, and sizeable working capital requirement. Key Rating Drivers & Detailed Description Strengths * Extensive experience of the promoters: The decade-long experience of VSL's promoter in the cotton spinning industry, and the strong customer and supplier network built over the years, will continue to support the business risk profile. * Locational advantage: The facility, located at Vita, Sangli (Maharashtra), enables easy access to cotton (key raw material), and skilled laborers. * Comfortable debt protection metrics: Net cash accrual to total debt and interest coverage ratios were comfortable at 0.19 times and 2.6 times, respectively, in fiscal 2017, owing to moderate profitability and ramp up in operations. Weakness * Large working capital requirement: Gross current assets of 136 days as on March 31, 2017, were driven by sizeable inventory and receivables of 86 and 53 days, respectively. * Moderate scale of operations amidst intense competition: Intense competition in the cotton spinning industry has kept the scale of operations moderate, as indicated by turnover of INR61.8 crore for fiscal 2017. Outlook: Stable CRISIL believes VSL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if substantial revenue growth and stable profitability leads to sizeable cash accrual. The outlook may be revised to 'Negative' if decline in revenue or profitability, leading to low cash accrual, further stretch in the working capital cycle, or any major capital expenditure, weakens the financial risk profile, particularly liquidity. VSL was set up by the promoter, Mr. Sadashiv Patil in 2010. The company has a manufacturing facility at Vita (Maharashtra), and commenced commercial operations in January 2015, with an installed capacity of 18,720 spindles. VISAGE INFRASTRUCTURE: CRISIL Reaffirms B Rating on INR2MM Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Visage Infrastructure Private Limited (VIPL) for obtaining information through letters and emails dated September 19, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 2 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 Visage Infrastructure 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 Visage Infrastructure 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/CRISIL A4'. VIPL, a private limited company established in 2013, is promoted by Mr. Narinder Singh, his cousin Mr. Ravindra Singh, and business associate Mr. Ankur Saxena. It undertakes civil construction for government institutions; and construction, procurement, and commissioning of power sub-stations. It is part of Paras group, which has interests in dairy products, hospitals, and real estate development in Delhi. VIZEBH COMPOSITECH: CARE Assigns 'D' Rating to INR15cr LT Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Vizebh Compositech Private Limited (VCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 15.00 CARE D Assigned Detailed Rationale & Key Rating Drivers Ongoing delay in debt servicing: The rating assigned to the bank facilities of Vizebh Compositech Private Limited is primarily due to irregularity in servicing its debt obligations owing to weak liquidity position. Gujarat (Vadodara) based VCPL was incorporated in October, 2013 by Mr. Pradeep Mahalik, Mr .Amrish Patel, and Mr. Jinesh Patel. VCPL is into manufacturing of different variants of composites, including non-composites, sheet-moulding compound/dough-moulding compound/bulk-moulding compound, fiber-reinforced polymers, carbon composites, composites advanced material, and thermoplastic polymer products. The company has started its commercial production from March 2016. =============== M A L A Y S I A =============== LION DIVERSIFIED: Contracts Out Mining Work for Lack of Capital --------------------------------------------------------------- The Star Online reports that Lion Diversified Holdings Bhd (LDHB) is giving exclusive right to Lion Tin Sdn Bhd, a company ultimately owned by its chairman Tan Sri William Cheng and managing director Tan Sri Cheng Yong Kim, to prospect and mine on 800 acres in Kuala Langat, Selangor. According to the report, the Practice Note 17 company said its unit Banting Resources Sdn Bhd (BRSB) entered into a contract-to- work agreement with Lion Tin on Oct. 11 as it was short of financial resources to undertake the mining activities itself. The Star relates that LDHB told Bursa Malaysia that BRSB would be paid a mining tribute equivalent to 10% of the revenue net of royalty from each type of mineral mined, processed and sold in exchange for giving Lion Tin the mining right for the six pieces of land. Lion Tin will carry out mining activities for a period of 10 years. In the event the initial term is extended, it will be for a further period of five years, the report says. The Star notes that BRSB will also give Lion Tin the option to buy the mining land at any time starting from six months from today and expiring on the expiry or termination of the contract- to-work agreement. The price will be determined based on the average of the market values of the mining land as assessed by two land valuers (to be separately appointed by the parties respectively). "The proposed award of contract will allow BRSB to realise potential earnings from the mining activities to be undertaken on the mining land without incurring material operational and capital costs in the process as Lion Tin is responsible for bearing such costs to extract the minerals," LDHB, as cited by the Star, said. The company noted that it had limited financial resources to undertake the mining activities itself, being a PN17 affected issuer, adds the Star. About Lion Diversified Based in Kuala Lumpur, Malaysia, Lion Diversified Holdings Berhad, an investment holding company, primarily manufactures, trades, and sells steel products in Malaysia and internationally. The company fell into PN 17 status as its auditors Ong Boon Bah & Co expressed an emphasis of matter on the group's ability to continue as a going concern based on its net loss of MYR245.6 million for the year ended June 30, 2013, and the group's current liabilities exceeding its current assets by MYR1.9 billion. PERISAI PETROLEUM: Trading Suspension, Delisting Deferred --------------------------------------------------------- The Sun Daily reports that the trading suspension and delisting of Perisai Petroleum Teknologi Bhd will be deferred pending the decision on its application for an extension of time to submit a regularisation plan. "The application is subject to Bursa Malaysia Securities Bhd's consideration and an announcement in relation to the outcome will be released in due course," the report quotes Perisai as saying in a stock exchange filing on Oct. 16. The Sun Daily relates that Perisai had on Oct. 12, 2016 triggered the PN17 criteria as it defaulted on debt repayment and had to submit a regularisation plan by Oct. 11, 2017. However, it had on Oct. 11, 2017 submitted an application to Bursa Securities for an extension of time to comply with the requirement. Perisai Petroleum Teknologi Bhd. (KLSE:PERISAI) -- http://www.perisai.biz/-- is a Malaysia-based investment holding company engaged in the provision of management, administrative and financial support services to its subsidiaries. The Company operates in three segments: Drilling Units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas offshore drilling; Production units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas production, and Marine Vessels, which is engaged in the provision of vessels, barges and equipment on vessel charter services. Its subsidiaries include Alpha Perisai Sdn. Bhd., which is engaged in the provision of administrative support services; Perisai Offshore Sdn. Bhd., which is engaged in the provision of oil and gas services in upstream oil sector, and Perisai production Holdings Sdn. Bhd., which is an investment holding company, among others. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 14, 2016, The Star Online said Perisai Petroleum Teknologi Bhd has been classified as a Practice Note 17 (PN17) company after its unit Perisai Capital (L) Inc defaulted on SGD125 million debt notes due on Oct. 3. The Star related that the upstream oil and gas provider said in a statement to Bursa Malaysia that it therefore must regularize its financial position within 12 months and implement the regularization plan within the timeframe stipulated by either the Securities Commission or Bursa Malaysia Securities Bhd. =============== M O N G O L I A =============== MONGOLIA: Fitch Assigns B- Rating to Proposed USD Bonds ------------------------------------------------------- Fitch Ratings has assigned Mongolia's forthcoming US dollar- denominated bonds an expected rating of 'B-(EXP)'. KEY RATING DRIVERS The expected rating is in line with Mongolia's Long-Term Foreign- Currency Issuer Default Rating (IDR) of 'B-' with a Stable Outlook. RATING SENSITIVITIES The rating would be sensitive to any changes in Mongolia's Long- Term Foreign-Currency IDR. On Feb. 19, 2017, Fitch affirmed Mongolia's Long-Term Foreign- Currency IDR at 'B-' with a Stable Outlook. The Long-Term Local- Currency IDR is also 'B-'. ==================== N E W Z E A L A N D ==================== NOSH GROUP: Creditors Call for Second Probe Into Former Directors ----------------------------------------------------------------- Rachel Clayton at Stuff.co.nz reports that creditors of the failed gourmet supermarket Nosh are calling for an investigation into the company's former directors. Nosh was sold by NZX-listed Veritas Investments, and owner of the Mad Butcher, to a consortium of local investors earlier this year for a loss of NZ$2.6 million, Stuff recalls. This was after Veritas' bank, ANZ, had forced the company to look to sell the troubled supermarket chain in order to repay some of its debt. According to Stuff, debt recover firm Bishop Warden filed a complaint to the New Zealand stock exchange on Oct. 17 about Veritas' directors, after hearing nothing about the investigation undertaken by liquidators Shephard Dunphy. The complaint was supported by 43 creditors, Stuff states. Stuff notes that the company which bought Nosh, Gosh Holdings, has since gone into receivership, while the entity which used to own the brand, Old NGL, went into liquidation last month. Shephard Dunphy's first report said the 150 creditors were owed about NZ$1.6 million. Stuff notes that in September, Shephard Dunphy said it would investigate Veritas' directors. But Bishop Warden spokesman Kirk MacGibbon said it had heard nothing of the investigation since it began, and was calling on the NZX to investigate. In its complaint, Bishop Warden said the former directors should be questioned on their decision to sell Nosh to twice bankrupt businessman Jonathan Denize, Stuff says. "This is independent and it may end up as part of Shephard Dunphy's investigation. We just wanted to light the fire and do what we could," Stuff quotes Mr. MacGibbon as saying. "We're not looking for any money, we want a moral victory. "We don't know what Shephard Dunphy have done. They've had three weeks to put something together to say what their strategy was. We think there are issues and we're sending them to the NZX, FMA, and Companies Office to see what they think." Shephard Dunphy insolvency manager Jessica Kellow said Bishop Warden should talk to the liquidator about the issues and would not comment further, adds Stuff. About Nosh Group Based in News Zealand, Nosh Group Limited operated a chain of food retail stores. It offers various gourmet treats; ham and turkey products; and a range of cheeses, breads, flowers, coffee, and chocolates. The company also engaged in the online retail of flowers, platter, and other gift products. Nosh Group Limited was formerly known as Veritas Holdings Limited and changed its name to Nosh Group Limited in September 2014. Steven Khov and Damien Grant from Waterstone Insolvency were appointed as receivers of Nosh Group Limited on July 14, 2017. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 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. 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