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/raid1/www/Hosts/bankrupt/TCRAP_Public/171020.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 Friday, October 20, 2017, Vol. 20, No. 209 Headlines A U S T R A L I A AUSTRALIAN ROAD: Second Creditors' Meeting Set for Oct. 23 AUSTRALIAN WAGYU: First Creditors' Meeting Set for Oct. 31 CZL GROUP: First Creditors' Meeting Set for Oct. 27 MAGNUM DESIGN: First Creditors' Meeting Set for Oct. 27 PLUTUS PAYROLL: Court Orders Group to be Liquidated TIN SHED: Clifton Hall Appointed as Liquidator C H I N A CHINA COMMERCIAL: Yang Jie Has 22.5% Equity Stake as of July 17 JIANGSU NANTONG: Moody's Rates Prop. USD Sr. Unsec. Notes (P)B2 LVGEM (CHINA): Tap Bond Issue No Impact on Moody's B2 CFR SPI ENERGY: Will Sell 320 Million Ordinary Shares for $33.9M SPI ENERGY: Director Roger Dejun Ye Resigns H O N G K O N G NOBLE GROUP: Oil Deal "Very Complicated," Vitol Group Says I N D I A A P GOYAL SHIMLA: Ind-Ra Rates Bank Loans B+, Outlook Stable A. N. R. COTTON: CRISIL Reaffirms 'B' Rating on INR14MM Loan AIRFLOW EQUIPMENTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating AKASH FASHION: Ind-Ra Raises Issuer Rating to BB+, Outlook Stable AMALTAS EDUCATIONAL: Ind-Ra Migrates B Rating to Non-Cooperating AMIT ENGINEERS: ICRA Moves B+ Ratings to Not Cooperating ATHITHEYA KSHEMA: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating B S ROADWAYS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating BHALARA COTTON: ICRA Moves 'B' Rating to Not Cooperating CROWN CASHEW: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable DEV RAJ: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan DILISO CERAMIC: CRISIL Reaffirms B- Rating on INR7.25MM LT Loan DUCON TECHNOLOGIES: CRISIL Reaffirms D Rating on INR55MM Loan G. T. HOMES: CRISIL Reaffirms B+ Rating on INR23MM Term Loan GAGAN WINE: CRISIL Reaffirms B+ Rating on INR17MM Cash Loan GYAN SHAKTI: CARE Assigns 'D' Rating to INR10cr LT Loan HI-TECH RADIATORS: Ind-Ra Migrates BB+ Rating to Non-Cooperating IUA TRUST: CRISIL Reaffirms 'D' Rating on INR22MM Term Loan J.B.C. INDUSTRIES: CRISIL Reaffirms B- Rating on INR6.5MM Loan JBJ TECHNOLOGIES: ICRA Moves 'B' Rating to Not Cooperating KABRA BUILDERS: CRISIL Reaffirms B+ Rating on INR3.75MM Loan KANIKA FURNITURE: CRISIL Assigns B+ Rating to INR1.59MM Term Loan KAURSAIN EXPORTS: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating MAHARSHI ALLOYS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating MAHE EDUCATIONAL: ICRA Moves B+ Rating to Not Cooperating NIFTY LABS: ICRA Reaffirms B+ Rating on INR26.50cr LT Loan NILSHIKHAA INFRAA: Ind-Ra Migrates BB+ Rating to Non-Cooperating PHTHALO COLOURS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating PLANET PR: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable POONAM TRADING: CRISIL Reaffirms 'D' Rating on INR17MM Loan PRAMUKH COTEX: CARE Raises Rating on INR12.78cr LT Loan to BB- PREMIER PLASTICS: CARE Moves B+ Rating to Not Cooperating R.V. RAYANAM: ICRA Assigns B+ Rating to INR15cr Bank Loan RAVELS APPARELS: CRISIL Reaffirms B+ Rating on INR3.5MM Loan RELIABLE POLYESTER: CARE Reaffirms B+ Rating on INR5.5cr Loan RENAATUS PROCON: CRISIL Reaffirms 'B' Rating on INR9.80MM Loan SALASAR PLYWOOD: ICRA Moves B+ Rating to Not Cooperating Category SANT DEEPAK: ICRA Lowers Rating on INR11.25cr Term Loan to D SHREEPATI JEWELS: ICRA Moves D Rating to Not Cooperating Category SHRI RAM: CARE Moves B+ Rating to Issuer Not Cooperating SHRI VASUDEVA: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating SIDDARTH INTERCRAFTS: ICRA Moves B+ Rating to Not Cooperating SIDDARTH ORGANISATION: ICRA Moves B+ Rating to Not Cooperating SIDDARTH ORG. LTD: ICRA Moves B+ Rating to Not Cooperating SIVAPARAMESH SPINNING: CRISIL Reaffirms B+ INR4.50MM Loan Rating SONAMOTI AGROTECH: Ind-Ra Migrates 'B+' Rating to Non-Cooperating SRI MAHESWARI: Ind-Ra Assigns 'B-' Issuer Rating; Outlook Stable U S SRIVASTAVA: Ind-Ra Moves BB Issuer Rating to Non-Cooperating UJJWAL LUXURY: CARE Lowers Rating on INR12.41cr LT Loan to 'D' UMIYA INDUSTRIES: ICRA Moves 'B' Rating to Not Cooperating VIJAI ELECTRICALS: Ind-Ra Withdraws Provisional WD Loan Ratings VIJAY PHARMA: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating VIJAYALAKSHMI AGRO: CARE Reaffirms B+ Rating on INR15CR LT Loan VIZEBHAGRI SCIENCES: CARE Assigns B+ Rating to INR11.87cr Loan VVC MOTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating WONDER CONSTRUCTION: ICRA Moves B- Rating to Not Cooperating J A P A N TOSHIBA CORP: Under Japan's Securities Watchdog Probe N E W Z E A L A N D BOOST GROUP: RFG Takes Control of Gloria Jean NZ Master Franchise S R I L A N K A SRI LANKA: External Pressures Constrain Credit Profile - - - - - ================= A U S T R A L I A ================= AUSTRALIAN ROAD: Second Creditors' Meeting Set for Oct. 23 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Australian Road Express Pty Ltd and Jolly's Transport Services Pty Ltd has been set for Oct. 23, 2017, at 10:00 a.m., at Len Buckeridge Room, Adina Apartment Hotel, 138 Barrack Street, 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. Andrew John Cummins, Peter Krejci and John Carrello of BRI Ferrier were appointed as administrators of Australian Road on July 17, 2017. AUSTRALIAN WAGYU: First Creditors' Meeting Set for Oct. 31 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Australian Wagyu Exports Pty. Ltd. will be held at the office of Amos Insolvency, 25/ 185 Airds Road, in Leumeah, NSW, on Oct. 31, 2017, at 11:00 a.m. Peter Andrew Amos of Amos Insolvency was appointed as administrator of Australian Wagyu on Oct. 19, 2017. CZL GROUP: First Creditors' Meeting Set for Oct. 27 --------------------------------------------------- A first meeting of the creditors in the proceedings of CZL Group Pty. Ltd. will be held at the offices of PKF, 755 Hunter Street, in Newcastle, West NSW, on Oct. 27, 2017, at 11:00 a.m. Simon John Thorn of PKF was appointed as administrators of CZL Group on Oct. 18, 2017. MAGNUM DESIGN: First Creditors' Meeting Set for Oct. 27 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Magnum Design Pty Ltd, trading as Zambrero Mount Lawley, and Magnum Aston Pty Ltd, trading as Zambrero Leederville and Subiaco, will be held at the offices of PPB Advisory, Level 21, 140 St Georges Terrace, in Perth, West Australia, on Oct. 27, 2017, at 10:30 a.m. Simon Theobald and Melissa Humann of PPB Advisory were appointed as administrators of Magnum Design on Oct. 17, 2017. PLUTUS PAYROLL: Court Orders Group to be Liquidated --------------------------------------------------- Leon Spencer at ARN reports that the Supreme Court of NSW has ordered that Plutus Payroll, the heavily IT industry-focused payroll outsourcing firm that was at the centre of a AUD165 million tax fraud investigation by the Australian Federal Police (AFP), be wound up and liquidated. ARN says the decision comes roughly five months after it was revealed that the payroll firm, Plutus Payroll, allegedly being run by several members of a syndicate alleged to be responsible for the AUD165 million tax fraud against the Federal Government. According to ARN, the revelation came as the AFP wrapped up an eight-month investigation, codenamed Operation Elbrus, conducted with assistance from ATO investigators, culminating with 28 search warrants in Sydney, Wollongong and the Southern Highlands. The outsourced payroll management service company left hundreds of IT contractors around the country without wages for weeks after its accounts were frozen by the Australian Taxation Office (ATO) in late April, prior to the AFP's disclosure of the investigation and its outcomes, according to ARN. ARN says Plutus Payroll, along with a number of associated entities were placed into administration after the investigation wrapped up. David Ianuzzi and Vincent Pirina from Veritas Advisory were appointed as joint administrators of Plutus Payroll Australia on June 6, 2017, just weeks after the alleged director of the company was arrested in the far reaching tax fraud case, ARN relates. Tim Norman, Sal Algeri and Eddie Senatore were appointed Joint and Several Provisional Liquidators of the 10 companies within the Plutus Group on June 9, 2017 by the Supreme Court of New South Walesfollowing an application made by the Deputy Commissioner of Taxation. On Oct. 9, 2017, the Court ordered that these ten (10) entities be wound up. They also ordered the winding up of BRW Services Pty Ltd on the same day. The Plutus Payroll Group of Companies provided payroll services to various companies. The PP Group has been the subject of significant media attention recently due to alleged tax fraud committed by the Companies and a number of related parties. Currently, the Australian Taxation Office and the Australian Federal Police are pursuing a number of the individuals involved. TIN SHED: Clifton Hall Appointed as Liquidator ---------------------------------------------- Mark Hall of Clifton Hall was appointed Liquidator of Tin Shed Wines Pty Ltd on Oct. 17, 2017 by Order of the Supreme Court of South Australia. ========= C H I N A ========= CHINA COMMERCIAL: Yang Jie Has 22.5% Equity Stake as of July 17 --------------------------------------------------------------- In a Schedule 13D/A filed with the Securities and Exchange Commission, these reporting persons disclosed beneficial ownership of shares of common stock of China Commercial Credit, Inc. as of July 17, 2017: Shares Percentage Beneficially of Reporting Person Owned Shares ---------------- ------------ ---------- Yang Jie 4,292,656 22.5% Xiaohuan Huang 3,472,756 18.2% Daqin International Business HK Ltd 819,900 4.3% The percentages are calculated on the basis of 19,070,915 shares of common stock outstanding as of Oct. 12, 2017. Yang Jie is a citizen of the People's Republic of China with the address situated at 81A Hampshire Rd, Great Neck, NY 11023. Mr. Jie serves as the VP of finance of the Company as well as general manager of the Company's representative office in New York, U.S. He is also an active securities and commodities investor. Xiaohuan Huang is a citizen of the People's Republic of China with the address situated at 81A Hampshire Rd, Great Neck, NY 11023. She is a housewife. Daqin International Business HK Limited, a limited company incorporated in Hong Kong, with the business address at Unit 1005, Tower A, New Mandarin Plaza, 14 Science Museum Road, Tsim Sha Tsui, Hong Kong. On Sept. 29, 2017, Mr. Jie purchased 452,486 shares of the Issuer's common stock and a warrant to purchase 158,370 shares of the Issuer's common stock with an initial exercise price of $2.26 per share for an aggregate purchase price of $819,000 pursuant to certain securities purchase agreement dated Sept. 27, 2017. On Sept. 6, 2017, Ms. Huang purchased 30,000 shares of the common stock of the Issuer in open market at the price at $2.59 per share. On July 17, 2017, Daqin acquired 30,510 shares of the common stock of the Issuer in a private transaction in consideration of cancellation of debt of $77,000 owed to Daqin by Zheng Yang pursuant to certain Share Transfer Agreement between Zheng Yang and Daqin. On July 17, 2017, Daqin acquired 193,950 shares of the common stock of the Issuer in a private transaction in consideration of cancellation of debt of $470,000 owed to Daqin by Shixian Wu pursuant to certain Share Transfer Agreement between Shixian Wu and Daqin. On July 17, 2017, Daqin acquired 567,720 shares of the common stock of the Issuer in a private transaction in consideration of cancellation of debt of $1,135,000 owed to Daqin by Suzhou Juntu Textile Co., Ltd pursuant to certain Share Transfer Agreement between Suzhou Juntu Textile Co., Ltd. and Daqin. On July 17, 2017, Daqin acquired 27,720 shares of the common stock of the Issuer in a private transaction in consideration of cancellation of debt of $56,000 owed to Daqin by Xianwen Zhang pursuant to certain Share Transfer Agreement between Xianwen Zhang and Daqin. On March 8, 2017, Company issued to Mr. Jie 92,875 shares of the common stock of the Issuer as compensation for his services in connection of identification and negotiation of potential merger & acquisition target. These shares were issued from the Company's 2014 Equity Incentive Plan. A full-text copy of the regulatory filing is available at: https://is.gd/As9Ar6 About China Commercial Credit Founded in 2008, China Commercial Credit -- http://www.chinacommercialcredit.com/-- provides business loans and loan guarantee services to small-to-medium enterprises, farmers and individuals in China's Jiangsu Province. Due to recent legislation and banking reform in China, these SMEs, farmers and individuals -- which historically had been excluded from borrowing funds from State-owned and commercial banks -- are now able to borrow money at competitive rates from microfinance lenders. China Commercial's independent accounting firm Marcum Bernstein & Pinchuk LLP, in Shanghai, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has accumulated deficit that raises substantial doubt about its ability to continue as a going concern. The Company had an accumulated deficit of US$76.25 million as of June 30, 2017. As of June 30, 2017, the Company had cash and cash equivalents of US$1.907 million and total short-term borrowings of nil. Caused by the limited funds, the management assessed that the Company was not able to keep the size of lending business within one year from the filing of June 30, 2017, Form 10-Q. China Commercial reported a net loss of US$1.98 million on US$1.29 million of total interest and fee income for the year ended Dec. 31, 2016, compared with a net loss of US$61.26 million on US$2.98 million of total interest income for the year ended Dec. 31, 2015. As of June 30, 2017, China Commercial had US$6.75 million in total assets, US$7.23 million in total liabilities and a total shareholders' deficit of $480,945. JIANGSU NANTONG: Moody's Rates Prop. USD Sr. Unsec. Notes (P)B2 --------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B2 rating to the proposed USD senior unsecured notes to be issued by Jiangsu Nantong Sanjian International Co., Ltd., a wholly-owned subsidiary of Jiangsu Nantong Sanjian Construction Group Co., Ltd. (JNTC, B2 stable). The proposed USD notes will be unconditionally and irrevocably guaranteed by JNTC, and will rank pari passu with other present and unsecured obligations of JNTC. The proceeds from the USD notes issuance will be used for general corporate purposes and repayment of debts. The rating outlook is stable. The provisional status of the rating will be removed after JNTC completes the USD notes issuance, registers the guarantee with the National Development and Reform Commission and the State Administration of Foreign Exchange in China (A1 stable), and if the final terms and conditions of the notes are consistent with Moody's expectations. RATINGS RATIONALE "The proposed notes issuance will have a limited impact on JNTC credit metrics and is within Moody's estimated amount of the new borrowings required to support the company's operations," says Danny Chan, a Moody's Analyst. The proposed notes will add new debt to the company, because the proceeds will not be used entirely for debt refinancing. Moody's expects that JNTC will continue to demonstrate debt financing needs for its infrastructure investment and working capital needs, as its sales orders continue to increase. JNTC's increasing investment in public private partnership (PPP) projects will likely require additional debt funding. Moody's expects that JNTC's investments in PPPs will stay at a moderate level and in the range of RMB500 million-RMB1 billion per year over the next 1-2 years. "Nonetheless, JNTC's strong order intake, increasing earnings and reduction of outbound guarantees will mitigate the impact of an increase in reported debt," adds Chan. Despite the likely higher debt levels, Moody's expects that JNTC will gradually lower its adjusted debt leverage through a reduction of outbound guarantees, and improve its earnings, with leverage - as measured by debt to EBITDA - likely falling to about 5.0x-5.5x over the next 12-18 months from 5.5x in 2016. JNTC's revenues should grow in the high single-digit to low-teen percentage during 2018 and 2019, underpinned by its increasing engagement in infrastructure projects under its new PPP model and order backlog of about 2.00x of sales at end-June 2017. JNTC's liquidity is modest. The company's cash balance of RMB3.4 billion - including pledged deposits - at the end of June 2017 was insufficient to cover its RMB4.0 billion in short-term debt. The proposed USD senior unsecured notes will therefore improve its liquidity and debt maturity profile. The (P)B2 rating on the proposed USD senior unsecured notes reflects the irrevocable and unconditional guarantee from JNTC. And, JNTC's B2 corporate family rating reflects in turn its established market position in Eastern China, with its proven and stable operating track record attributed to its strong execution of projects and diversified client base. On the other hand, JNTC's rating is constrained by its concentration in the construction of residential buildings. Other factors that constrain the company's rating include its small scale, high leverage, weak corporate governance and its parent's weak credit profile. JNTC's bond rating is not notched down from its corporate family rating of B2, because of Moody's expectation that the company's priority debt will remain well below 15% of its total assets over the next 12-18 months, following the issuance of the proposed USD notes. This view also reflects the fact that the majority of claims reside at the holding company level. The stable rating outlook on the proposed USD senior unsecured notes reflects Moody's expectation that JNTC will maintain its market share and EBITDA margins, gradually lowering its total outbound guarantees and intercompany lending, and that the company will remain prudent in its financial and liquidity management, while expanding its PPP investments. JNTC's rating could be upgraded, if the company: (1) successfully expands its operations to infrastructure projects, while minimizing execution risks; (2) improves its profitability and debt leverage through the adoption of prudent investment strategies; and (3) improves its corporate governance by reducing external guarantees. Credit metrics indicating upward rating pressure include adjusted debt/EBITDA below 5.0x on a sustained basis. On the other hand, JNTC's rating will be downgraded if: (1) it aggressively invests in PPP projects, resulting in a considerable deterioration in its financial profile; (2) it experiences a substantial decline in its new contracts wins; (3) it incurs large cost overruns and delays in its projects; and (4) there is evidence of increasing outbound guarantees or intercompany lending. Credit metrics indicating downward rating pressure include an adjusted debt/EBITDA in excess of 6.0x-6.5x. The principal methodology used in this rating was Construction Industry published in March 2017. Jiangsu Nantong Sanjian Construction Group Co., Ltd. (JNTC), headquartered in Haimen, Jiangsu Province, is a privately owned engineering contractor in Eastern China. Revenue for the 12 months ended June 30, 2017 totaled approximately RMB20.4 billion. The company is 73.05% owned by Nantong Sanjian Holdings Co., Ltd., which is in turn majority owned by its founders and 13.2% owned by Haimen City Development and Construction Co., Ltd., under the Haimen State-owned Assets Supervision and Administration Commission. JNTC listed on China's National Equities Exchange and Quotations in July 2016. LVGEM (CHINA): Tap Bond Issue No Impact on Moody's B2 CFR --------------------------------------------------------- Moody's Investors Service says that the B2 corporate family rating for LVGEM (China) Real Estate Investment Co. Ltd., as well as the B3 backed senior unsecured rating for the USD notes guaranteed by LVGEM and issued by Gemstones International Limited -- a wholly owned subsidiary of LVGEM -- are unaffected by Gemstones' proposed tap bond offering on terms and conditions that are the same as its existing USD225 million senior notes due 2020. The outlook on both ratings above remains negative. The proceeds from the proposed tap issuance will be used for general corporate purposes and to finance new property projects. LVGEM's B2 corporate family rating reflects its strong profitability and low-cost land bank, which is a result of the company's business strategy of executing urban redevelopment projects in Shenzhen. The company's profitability is the highest among its rated property peers in China (A1 stable), with its gross margin exceeding 46% over the last three years (2014-2016). Such profitability levels support its B2 rating. The corporate family rating also reflects the company's stable recurring rental income from its investment properties. For example, its gross rental revenues will cover around 0.4x of its interest expenses, which is another factor supporting its B2 rating. However, the rating is constrained by LVGEM's small scale, concentration of contracted sales in Shenzhen, weak liquidity and volatile operating performance in its property development business. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in April 2015. LVGEM (China) Real Estate Investment Co. Ltd. listed on the Hong Kong Stock Exchange in November 2015. At end-June 2017, LVGEM's attributable land bank totaled around 4.1 million square meters, across Shenzhen, Hong Kong, Zhuhai, Suzhou, and Maoming. SPI ENERGY: Will Sell 320 Million Ordinary Shares for $33.9M ------------------------------------------------------------ SPI Energy Co., Ltd., has entered into share purchase agreements with each of Qian Kun Prosperous Times Investment Limited and Alpha Assai fund SP of Sunrise SPC. The share purchase agreements provide, among other things, that Qian Kun Prosperous Times Investment Limited and Alpha Assai fund SP of Sunrise SPC will purchase 80,000,000 and 240,000,000 ordinary shares of the Company respectively, for a total consideration of US$33,920,000, subject to the terms and conditions of the respective share purchase agreement, including a lock-up for 90 days from the closing date of the contemplated transactions, or such other time or on such other date that is agreed upon in writing by both parties. The consummation of these transactions are also subject to customary closing conditions. About SPI Energy SPI Energy Co., Ltd. -- http://investors.spisolar.com/-- is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the EPC/BT, storage and O2O PV market including the development, financing, installation, operation and sale of utility-scale and residential PV projects in China, Japan, Europe and North America. The Company operates an online energy e-commerce and investment platform in China, as well as B2B e-commerce platform offering a range of PV and storage products in Australia. The Company has its operating headquarters in Hong Kong and maintains global operations in Asia, Europe, North America and Australia. SPI Energy reported a net loss of $185 million on $191 million of net sales for the year ended Dec. 31, 2015, compared to a net loss of $5.19 million on $91.6 million of net sales for the year ended Dec. 31, 2014. As of June 30, 2016, SPI Energy had $549.4 million in total assets, $415.0 million in total liabilities, and $134.4 million in total stockholders' equity. "[T]he Group has suffered significant losses from operations and has a negative working capital as of December 31, 2015. In addition, the Group has substantial amounts of debts that will become due for repayment in 2016. These factors raise substantial doubt about the Group's ability to continue as a going concern," the Company disclosed in its 2015 Annual Report. "While management believes that the measures in the liquidity plan will be adequate to satisfy its liquidity and cash flow requirements for the twelve months ending Dec. 31, 2016, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan will have a material adverse effect on the Group's business, results of operations and financial position, and may materially adversely affect its ability to continue as a going concern. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Group be unable to continue as a going concern." SPI ENERGY: Director Roger Dejun Ye Resigns ------------------------------------------- Roger Dejun Ye resigned as a director of the board of director of SPI Energy Co., Ltd. effective as of Oct. 9, 2017. "We would like to thank Mr. Roger Ye for his dedication and contributions to the Company and we are grateful for his support and cooperation during his tenure as a valued board member and wish him well in his future endeavors," said Xiaofeng Peng, Chairman and CEO of SPI Energy. About SPI Energy SPI Energy Co., Ltd. -- http://investors.spisolar.com/-- is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the EPC/BT, storage and O2O PV market including the development, financing, installation, operation and sale of utility-scale and residential PV projects in China, Japan, Europe and North America. The Company operates an online energy e-commerce and investment platform in China, as well as B2B e-commerce platform offering a range of PV and storage products in Australia. The Company has its operating headquarters in Hong Kong and maintains global operations in Asia, Europe, North America and Australia. SPI Energy reported a net loss of $185 million on $191 million of net sales for the year ended Dec. 31, 2015, compared to a net loss of $5.19 million on $91.6 million of net sales for the year ended Dec. 31, 2014. As of June 30, 2016, SPI Energy had $549.4 million in total assets, $415.0 million in total liabilities, and $134.4 million in total stockholders' equity. "[T]he Group has suffered significant losses from operations and has a negative working capital as of December 31, 2015. In addition, the Group has substantial amounts of debts that will become due for repayment in 2016. These factors raise substantial doubt about the Group's ability to continue as a going concern," the Company disclosed in its 2015 Annual Report. "While management believes that the measures in the liquidity plan will be adequate to satisfy its liquidity and cash flow requirements for the twelve months ending Dec. 31, 2016, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan will have a material adverse effect on the Group's business, results of operations and financial position, and may materially adversely affect its ability to continue as a going concern. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Group be unable to continue as a going concern." ================ H O N G K O N G ================ NOBLE GROUP: Oil Deal "Very Complicated," Vitol Group Says ---------------------------------------------------------- Bloomberg News reports that Vitol Group's negotiations to buy Noble Group Ltd.'s oil trading unit are "very complicated" and may not end in a deal, the chief executive officer of Vitol said, adding to pressure on his Hong Kong-based rival. Bloomberg notes that the sale of the oil business is crucial to the survival of Noble Group, once Asia's largest commodity trader. It is rushing to sell the unit in order to pay back about $1 billion of debt under its secured credit facilities, of which the largest matures in mid-January, the report says. "We're engaged; we have been talking to Noble," Ian Taylor told Bloomberg TV on Oct. 18 in the first public confirmation by the world's largest independent oil trader that it is bidding for its rival's business. But he warned that the talks may not end in an agreement. "It's a very, very complicated deal. There are some technicalities," Bloomberg quotes Mr. Taylor as saying. "It's very difficult to know exactly how that's going to end, I'm afraid." Asked whether the stumbling block was price, he replied that it was "more the overall terms and conditions" of the deal, Bloomberg relays. Bloomberg reported last week that Vitol was in advanced talks to buy the business, which trades about 2.5 million barrels a day of crude and refined products. But the talks have been complicated by issues including how much of the sale price should be paid into an escrow account, Bloomberg relates citing people familiar with the matter. An earlier deal to sell Noble's smaller gas- and power-trading unit to Mercuria Energy Group Ltd. reaped less than anticipated as Mercuria paid 45 percent of the total sale consideration into an escrow account, Bloomberg says. Noble's negotiations with its lenders have also complicated the oil sale, the people, as cited by Bloomberg, said. The trader has a covenant waiver on a $1.1 billion credit facility that will expire at the end of this week unless Noble can secure an agreement to extend it, Bloomberg notes. What's more, while Vitol is keen to acquire some parts of Noble's business, such as a long-term contract for shipping via the Colonial pipeline, it is less interested in other loss-making businesses that would probably have to be shut down or sold, the people said, Bloomberg relays. Noble is insisting on selling the unit as a whole. "They've got lots of businesses," Bloomberg quotes Mr. Taylor as saying. "They obviously are looking for a clean deal." Initially, Noble Group had said it was aiming to announce an agreement by the end of September, Bloomberg notes. According to Bloomberg, Noble Group has been under increasing pressure since May, when a surprise trading loss compounded a long-running crisis that saw its market value collapse by more than 90 percent and its bonds tumble to less than 50 cents on the dollar. Bloomberg notes that the company warned of the risk of bankruptcy at two of its major subsidiaries in audited accounts filed in recent weeks in the U.K. and Singapore. In particular, it highlighted in a filing by subsidiary Noble Resources U.K. Holdings Ltd. that its ability to meet its obligations was dependent on factors including "asset monetization plans being carried out successfully, Bloomberg relates. About Noble Group Hong Kong-based Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- engages in supply of agricultural, industrial and energy products. The Company supplies agricultural and energy products, metals, minerals and ores. Agriculture products include grains, oilseeds and sugar to palm oil, coffee, and cocoa. Energy business includes coal, gas and liquid energy products. In metals, minerals and ores (MMO), it supplies iron ore, aluminum, special ores and alloys. The Company operates nearly in 140 locations. It supplies growth demand markets in Asia and Middle East. Alcoa World Alumina and Chemicals is the subsidiary of this company. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 2, 2017, S&P Global Ratings said that it has reviewed its senior unsecured issue-level ratings for Noble Group Ltd. that were labeled as "under criteria observation" (UCO) after publishing its revised issue rating criteria, "Reflecting Subordination Risk In Corporate Issue Ratings" on Sept. 21, 2017. With S&P's criteria review complete, it is removing the UCO designation from these ratings and is raising its issue rating on Noble Group's senior unsecured debt to 'CCC-' from 'CC'. ========= I N D I A ========= A P GOYAL SHIMLA: Ind-Ra Rates Bank Loans B+, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has rated A P Goyal Shimla University's (APGSU) bank loans as follows: -- INR205.4 mil. Term Loan I, issued on May 21, 2011, due on May 27, 2021, assigned with IND B+/Stable rating; -- INR228 mil. Term Loan II, issued on September 19, 2013, due on September 28, 2022, assigned with IND B+/Stable rating; and -- INR50 mil. Bank Overdraft assigned with IND B+/Stable rating. KEY RATING DRIVERS The ratings reflect APGSU's high debt burden indicated by debt/current balance before interest and depreciation of 8.18x in FY17 (FY16: 13.22x) and limited debt servicing capabilities. The university's debt service coverage ratio stood at 0.86x in FY17 (FY16: 0.87x). The company repays debt using funds infused by way of unsecured loans and corpus fund. The ratings are also constrained by APGSU's moderate liquidity position as reflected by available funds to total long-term debt ratio of 8.91% in FY17 (FY16: 9.85%). However, the ratings are supported by AGPSU's increasing headcount which grew at a CAGR of 61.25% to 2,028 over FY13-FY17 and further increased to 2,543 students in FY18. The operating margins improved to 40.12% in FY17 (FY16: 26.12%). APGSU's fee income grew at a CAGR of 78.82% to INR185.86million during FY13- FY17. APGSU largely relies on tuition fees, which constituted on an average 79.09% of the total income during FY13-FY17. Total expenditure mainly includes operating expenditure (average 29.15%) followed by staff costs (average: 21.01%). Ind-Ra expects the income to grow at a steady pace on account of growing headcount and fee revisions. The ratings also benefit from APGSU being the only private university in Shimla which can start any course with prior approval from the state government. RATING SENSITIVITIES Positive: An improvement in the liquidity position, reduction in debt along with a sustained improvement in the operating margins resulting from a strong growth in total headcount could be positive for the ratings. Negative: Any unexpected fall in student demand in conjunction with a further increase in debt in relation to operating income could negatively impact the ratings. COMPANY PROFILE APGSU is run by A P Goyal Charitable Trust, a non-profit educational trust established in 2004 by Mr. Pramod Goyal and Mr. Rajesh Goyal. A. N. R. COTTON: CRISIL Reaffirms 'B' Rating on INR14MM Loan ------------------------------------------------------------ CRISIL's rating on the long-term bank facilities of A. N. R. Cotton Traders (ACT) continues to reflect its modest scale of operations with susceptibility to volatility in cotton prices and to changes in government regulations. The rating also factors its weak financial risk profile because of an aggressive capital structure and sub-par debt protection metrics. These weaknesses are partially offset by the extensive experience of the partners in the cotton industry and the firm's established customer relationships. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 14 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 2 CRISIL B/Stable (Reaffirmed) Proposed Cash Credit Limit 2 CRISIL B/Stable (Reaffirmed) Analytical Approach CRISIL has treated unsecured loans of INR2.07 crore extended to ACT by the partners and their relatives as neither debt nor equity, as the loans are interest-free, and are likely to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: The firm's small scale is reflected in operating income of INR74.7 crore in fiscal 2017. Intense competition in the fragmented cotton industry will keep the scale modest over the medium term. * Susceptibility to volatility in cotton prices and to changes in government regulations: Cotton prices are affected by demand and supply, and government policies, and any sharp change in prices will impact the firm's profitability. * Weak financial risk profile: Financial risk profile is constrained by high total outside liabilities to adjusted networth of 3.41 times as on March 31, 2017, and modest risk and interest coverage ratios of 2.9 times and 1.4 times, respectively, in fiscal 2017. Strength * Extensive experience of the partners and established customer relationships: Experience of two decades of managing partner Mr A Gopalakrishna and his established relationships with customers and suppliers will continue to support ACT's business risk profile Outlook: Stable CRISIL believes ACT will continue to benefit from its partners' extensive industry experience. The outlook may be revised to 'Positive' if capital structure improves because of a significant increase in cash accrual or infusion of funds. The outlook may be revised to 'Negative' if the firm undertakes debt-funded capital expenditure or if operating margin is lower than expected, resulting in deterioration in the financial risk profile. Set up in 2001 as a partnership firm, ACT trades in cotton bales and seeds. The firm is promoted by Mr A Gopalakrishna and Mr A Ravi Kumar. ACT reported a provisional profit after tax (PAT) of INR52.49 lakhs on revenue of INR 74.75 crore in fiscal 2017 (INR43.99 lakhs and INR58.42 crore, respectively, for fiscal 2016). AIRFLOW EQUIPMENTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Airflow Equipments (India) Private Limited's (AFEPL) 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 D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR100 mil. Fund-based limits (Long-term) migrated to non- cooperating category with IND D(ISSUER NOT COOPERATING) rating; and -- INR52.26 mil. Long-term loan (Long-term) migrated to non- cooperating category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE AFEPL is a manufacturer of railway rolling stock equipment. It undertakes designing, analysis, development, fabrication, machining and assembly of composite parts for railway vehicles and automobiles. AKASH FASHION: Ind-Ra Raises Issuer Rating to BB+, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Akash Fashion Prints Private Limited's (Akash Fashion) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable. Instrument- wise rating actions are: -- INR60 mil. (reduced from INR80 mil.) Fund-based working capital limit long-term rating upgraded; short-term rating affirmed with IND BB+/Stable/IND A4+ rating; and -- INR156.9 mil.(reduced from INR209.2 mil.) Term loan due on December 2022 upgraded with IND BB+/Stable rating. KEY RATING DRIVERS The upgrade reflects a significant improvement in Akash Fashion's liquidity position during FY17. As per FY17 provisional financials, cash flow from operations and free cash flow improved to INR106.5 million (FY16: INR39.3 million) and INR54.2 million (INR2.0 million), respectively, due to an improvement in working capital cycle to 6 days (17 days) resulting from better management of inventory. The company's peak utilisation of fund- based working capital limits was lower at 48% during the 12 months ended September 2017 compared with 53% for the 12 months ended June 2016. Revenue grew to INR835.7 million in FY17P (FY16: INR776.4 million) on account of repeat orders from existing clients as well as addition of a rotary printing machine in December 2016 and a flatbed printing machine in March 2017. However, the scale of operations continued to remain small. Ind-Ra expects the revenue growth to continue in FY18 as the company added an additional flatbed printing machine in May 2017. Akash Fashion's achieved revenue of INR478 million in 1HFY18. EBITDA margins remained volatile between 9.9% and 13.7% over FY13-FY17 due to fluctuations in raw material prices. Net financial leverage (Ind-Ra total adjusted net debt/operating EBITDAR) was stable at 2.3x in FY17P (FY16: 2.3x), while EBITDA interest coverage (operating EBITDA/gross interest expense) deteriorated to 3.6x (4.3x) owing to a decline in operating profitability (FY17P: 10.3%, FY16: 13.7%). The ratings continue to be constrained by Akash Fashion's presence in a highly fragmented and intensely competitive textile printing industry. However, the ratings continued to be supported by the company's established position and a vintage of more than two decades in the textile and printing industry. RATING SENSITIVITIES Positive: A substantial increase in the scale of operations while maintaining the profitability and credit metrics at the current level will be positive for the ratings. Negative: A decline in the scale of operations or operating profitability and/or any unplanned debt-led capex leading to deterioration in the credit metrics and/or liquidity position will be negative for the ratings. COMPANY PROFILE Incorporated in 1993, Akash Fashion is located in Ahmedabad, Gujarat. The company prints, dyes and knits on cotton and polyester material. AMALTAS EDUCATIONAL: Ind-Ra Migrates B Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Amaltas Educational Welfare Society's (AEWS) bank loans' ratings to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-up with the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The ratings will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR370 mil. Term loans migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating; and -- INR100 mil. Bank guarantees migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on October 26, 2016. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the ratings. COMPANY PROFILE AEWS has been registered as a society under the Society Registration Act, 1860. It was established on 18 December 2013 with a registered office in Manoramaganj, Indore and is engaged in providing medical services and education. The hospital and the medical school are located in village Bangar, Madhya Pradesh. AMIT ENGINEERS: ICRA Moves B+ Ratings to Not Cooperating -------------------------------------=------------------ ICRA has moved the ratings for the INR6.30 crore bank facilities of Amit Engineers 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 based 4.10 [ICRA]B+ (Stable); ISSUER NOT COOPERATING; Rating moved to the 'Issuer not Cooperating' category Long term non fund based 0.50 [ICRA]B+ (Stable); ISSUER NOT COOPERATING; Rating moved to the 'Issuer not Cooperating' category Short term non fund based 1.70 [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 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 Amit Engineers, 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 * Extensive experienced of the promoters in the manufacturing of Air Conditioning and Refrigeration products for Indian Railways * Established customer base including Indian Railways, BEML etc with low counter party credit risk Credit weaknesses * Fragmented industry and low value added product profile limits bargaining power and restricts profitability * Elongated payments from Indian Railways stretched the liquidity * High dependence on Indian Railways for majority of sales Amit Engineers was established in 1986 and is into manufacturing of Air Conditioning and Refrigeration products for Indian Railways and is supplying fully integrated Air Conditioner to the Indian Railways since 2001. The company is an ISO 9001:2008 certified Company having their unit located in Chandigarh. ATHITHEYA KSHEMA: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Athitheya Kshema Hotels Private Limited's (AKH) 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: -- INR103.99 mil. Term loan migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; -- INR5 mil. Fund-based facilities migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; and -- INR31.7 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 12, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE AKH was established by Mr. Ravi and Mrs. Sudha in 1999. AKH operates the 37th Crescent Road Hotel in Bangalore, Karnataka. The hotel has 60 rooms with two banquet/conference halls, a board room, a health club and a multi cuisine restaurant. B S ROADWAYS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated B.S. Roadways' (BSR) 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: -- INR38.96 mil. Term loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; -- INR14 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR1.76 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 October 6, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE BSR was incorporated in 2011 as a partnership firm by Gujral Group. The entity started its commercial operations in 2012. It is primarily involved in the transportation business. BHALARA COTTON: ICRA Moves 'B' Rating to Not Cooperating -------------------------------------------------------- ICRA has moved the ratings for the INR22.00 crore bank facilities of Bhalara Cotton Private Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as: "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits- 17.00 [ICRA]B (Stable) ISSUER NOT Cash Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund-based Limits- 5.00 [ICRA]B (Stable) ISSUER NOT Proposed Limits 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 RTC, ICRA has been trying to seek information from the entity so as to monitor its performance and had also sent repeated reminders to the company for payment of surveillance fee that became overdue, 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 * Experience of key promoters in the cotton industry: BCPL was incorporated in 2005 and the promoters have long standing experience in ginning and pressing of raw cotton. * Strategic location of the plant in the cotton producing belt of India, giving it easy access to raw cotton: The manufacturing facility of the company is located in Rajkot, Gujarat, which ensures easy availability of raw material. Credit weaknesses * Highly fragmented industry structure due to a large number of manufacturers and traders; low-entry barriers result in high competition: The cotton industry is highly fragmented with a large number of organised and unorganised players which limits its pricing flexibility and bargaining power. * Operations exposed to regulatory restrictions on cotton export and minimum support price (MSP): It is exposed to regulatory risks as prices are decided through the minimum support price set by the Government. Incorporated in 2005, Bhalara Cotton Private Limited is promoted by Mr. Bipin Ranpariya and Mr. Jitendra Bhalara along with other shareholders. The company is engaged in the business of ginning and pressing of raw cotton with installed manufacturing capacity of around 250 bales per day. The company is equipped with 24 ginning machines and 1 pressing machine having capacity to produce 250 bales per day. CROWN CASHEW: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Crown Cashew Impex Private Limited (CCIPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR 99.0 mil. Fund-based working capital assigned IND B+/Stable/IND A4 rating. KEY RATING DRIVERS The ratings reflect CCIPL's small scale of operations and weak credit metrics. In FY17, revenue was INR223.0 million (FY16: INR22 million) and EBITDA margin was 1.3% (7.6%). FY17 is the first full year of operations. It registered revenue of INR102.5 million for 1QFY18. Furthermore, gross interest coverage (operating EBITDA/gross interest expense) was 1.1x (1.0x) and net leverage (adjusted net debt/operating EBITDA) was 6.9x (5.0x). Ind-Ra expects the credit metrics to remain stable in the medium term due to absence of debt-led capex. FY17 financials are provisional in nature. The ratings are supported by comfortable liquidity and extensive promoter experience. Its utilisation of fund-based limits was 37% during the 12 months ended September 2017. The promoters have over five decades of experience in cashew kernels manufacturing. RATING SENSITIVITIES Negative: Any fall in the EBITDA margin leading to deterioration in the credit metrics on a sustained basis could be negative for the ratings. Positive: Any substantial rise in the revenue and EBITDA margin leading to an improvement in the credit metrics on a sustained basis will be positive for the ratings. COMPANY PROFILE Incorporated in 2015, CCIPL is engaged in the processing and export of value-added products such as shelled cashews, chosen by specialists, and inert-packed cashews. It has a daily capacity of 12 metric tons. It is located in Kerala (Kollam). DEV RAJ: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan ------------------------------------------------------- CRISIL has been consistently following up with Dev Raj Rangwala (DRR) for obtaining information through letters and emails dated July 10, 2017 and August 8, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 2.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 1.00 CRISIL A4 (Issuer Not Bill Discounting Cooperating; Rating Reaffirmed) Proposed Long Term 1.00 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Working Capital 1.00 CRISIL B+/Stable (Issuer Not Demand Loan 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 Dev Raj Rangwala. 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 Dev Raj Rangwala 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/CRISIL A4. Dev Raj Rangwala (DRR) is a partnership firm, started in 1993 by Delhi based Mr. Ashwini Khurana and his brother Mr. Rakesh Khurana. The firm undertakes trading of different grades of resins, textile chemicals, transfer papers, organic and inorganic pigments, adhesives, additives and other chemicals. The firm is based in Delhi and has warehouses in Delhi and Mumbai. DILISO CERAMIC: CRISIL Reaffirms B- Rating on INR7.25MM LT Loan --------------------------------------------------------------- CRISIL has been consistently following up with Diliso Ceramic (DC) 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 1.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 3.0 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 7.25 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 0.75 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 Diliso Ceramic. 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 Diliso Ceramic 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'. DC, incorporated in 2013, is promoted by the Morbi (Gujarat)- based Shri Bharat Patel and Shri Bhavik Sanaja. The firm manufactures glazed wall and floor tiles at its facilities, in Morbi. DUCON TECHNOLOGIES: CRISIL Reaffirms D Rating on INR55MM Loan ------------------------------------------------------------- CRISIL ratings on the bank facilities of Ducon Technologies India Private Limited (Ducon) continues to reflect Ducon's working capital intensive operations and sensitivity of profitability to fluctuation in raw material prices. These rating weaknesses are partially offset by moderate revenue visibility and financial risk profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 55 CRISIL D (Reaffirmed) Cash Credit 50 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 30 CRISIL D (Reaffirmed) CRISIL had downgraded its ratings on the bank facilities of Ducon to 'CRISIL D/CRISIL D' from 'CRISIL BB+/CRISIL A4+/Watch Negative' on September 29, 2017. Key Rating Drivers & Detailed Description Weaknesses * Working capital-intensity in operations: Stretched receivables of over 180 days, due to retention money and decline in creditors, continue to keep working capital under pressure. * Volatility in raw material prices: Profitability remains susceptible to volatility in raw material prices, especially for fixed-price contracts, as projects have a long execution period. Strengths * Moderate revenue visibility: Diversified product portfolio and healthy revenue visibility from unexecuted orders of INR300 crore support business risk profile. * Moderate financial risk profile: Networth was adequate at INR50 crore, while gearing was moderate at 1.1 times, as on March 31, 2017. Debt protection metrics were moderate with interest coverage of 2.4 times and net cash accrual to total debt ratio of 10-11% in fiscal 2017. Incorporated in March 2005 and promoted by Mr Arun Govil, Ducon undertakes turnkey projects for setting up industrial pollution control and material handling systems. It is the Indian arm of the US-based Ducon Technologies Inc, which provides technology support to Ducon. G. T. HOMES: CRISIL Reaffirms B+ Rating on INR23MM Term Loan ------------------------------------------------------------ CRISIL has been consistently following up with G. T. Homes (GTH) for obtaining information through letters and emails dated July 13, 2017, and August 17, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 23 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 G. T. Homes. 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 G. T. Homes 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' GTH, established in 2003 as a partnership firm, executes real estate projects; it is owned and managed by Mr. Gajendra Singh Rajpal and his nephew, Mr. Gurjeet Singh Rajpal. The firm is currently executing two residential real estate projects in Raipur and Naya Raipur (both in Chhattisgarh). GAGAN WINE: CRISIL Reaffirms B+ Rating on INR17MM Cash Loan ----------------------------------------------------------- CRISIL has been consistently following up with Gagan Wine Trade and Financers Limited (GWTFL) 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 ---------- --------- ------- Cash Credit 17 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 8 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 Gagan Wine Trade and Financers 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 Gagan Wine Trade and Financers 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. GWTFL is a closely-held public limited company, based in Delhi. It was incorporated in 1996 by promoter, Mr. Shiv Lala Doda, who has experience of over two decades in the liquor distribution business. GYAN SHAKTI: CARE Assigns 'D' Rating to INR10cr LT Loan ------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Gyan Shakti Education Welfare Trust (GSEWT), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 10 CARE D Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of GSEWT takes into account outstanding penal interest. Detailed description of the key rating drivers Delays in interest servicing: GSEWT is servicing the monthly installments and interest but the Bank has levied penal interest, which is still outstanding. GSEWT was established in December 2013 as a public charitable trust to set up a coeducational Kindergarten to class XII CBSE affiliated day school at Crossings Republik, Ghaziabad. The trust is established by Mr. Sanjeev Jain, who possesses more than 2 decades of experience in the field of real estate development. The school is divided into 3 blocks over 8,100 sq. meters land with student intake capacity of 2,700 students. Initially, only 1 block is constructed and commenced its operations for I-VIIIth standard from April 2015. The operations and management of School is under brand name "Sapphire International School". HI-TECH RADIATORS: Ind-Ra Migrates BB+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Hi-Tech Radiators Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR56.6 mil. Long-term loans migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; -- INR129.14 mil. Proposed long-term loans migrated to non- cooperating category with Provisional IND BB+(ISSUER NOT COOPERATING) rating; -- INR118.9 mil. Cash credit limits migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; -- INR40 mil. Usance bills discounted under letter of credit migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; and -- INR140 mil. Letter of credit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 28, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1989, Hi-Tech Radiators manufactures corrugated tanks and fin-type radiators for power and distribution transformers. The company has two manufacturing plants, one each located in Rabale (Navi Mumbai) and Khopoli (Raigad), with a total manufacturing capacity of 1,200mt/month. IUA TRUST: CRISIL Reaffirms 'D' Rating on INR22MM Term Loan ----------------------------------------------------------- CRISIL has been consistently following up with IUA Trust (IUA) 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 ---------- --------- ------- Secured Overdraft 0.5 CRISIL D (Issuer Not Facility Cooperating; Rating Reaffirmed) Term Loan 22.0 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of IUA Trust. 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 IUA Trust 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. IUA was set up in 2009 by members of the Dhingra family and Maheshwari family to set up a recreational club cum sports centre by the name of 'DD Club' at Delhi. J.B.C. INDUSTRIES: CRISIL Reaffirms B- Rating on INR6.5MM Loan -------------------------------------------------------------- CRISIL has been consistently following up with J.B.C. Industries (JBC) 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 6.5 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 J.B.C. Industries. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for J.B.C. Industries 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. JBC Industries, incorporated in 1995, is a sole proprietorship firm, owned by Mr. Jitendra Patra. The Odisha-based firm trades in iron and steel products, such as HB wire, GI wire, agricultural equipment and manufactures binding wire, barbed wire, chainlink net and fastener nails. It is the authorised dealer of Tata Steel Ltd (Agrico and wire division) for 22 districts in Odisha. The manufacturing facility is located at Mancheswar Industrial Estate at Bhubaneswar. JBJ TECHNOLOGIES: ICRA Moves 'B' Rating to Not Cooperating ---------------------------------------------------------- ICRA has moved the ratings for the INR8.55-crore bank facilities of JBJ Technologies 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 ---------- ----------- ------- Long-term fund- 7.25 [ICRA]B (Stable); ISSUER NOT based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Short-term fund- 0.55 [ICRA]A4; ISSUER NOT based COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Short-term non- 0.75 [ICRA]A4; ISSUER NOT fund based 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 JBJ Technologies 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 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Experience of promoters: Established in 1996, the promoter has long experience in the mould making and injection moulding segment. Credit weaknesses * Modest scale of operations: The company faces high regional concentration risk with the company's entire sales being derived from a single product segment in Madhya Pradesh (MP) as the demand is driven by the level of economic and construction activities in the region. * Stretched liquidity profile: The liquidity of the company remains tight due to long conversion cycle involved in developing and designing of the prototypes in the moulding division leading to high inventory levels. * Modest financial profile as indicated in high gearing and modest debt coverage indicators: The company relies largely on external borrowings for funding the working capital given the limited net worth base. This coupled with high term loan repayments lead to stretched liquidity position as reflected in near full utilization of its working capital facilities throughout the year. Established in 1996, JBJ is a closely held company primarily involved into designing and manufacturing of high precision moulds and manufacturing of plastic moulds through injection moulding. The company caters to clients like SC Johnson, Kent Ro etc and manufactures outer body for the All Out brand (SC Johnsons) and Kent's Water purification system. KABRA BUILDERS: CRISIL Reaffirms B+ Rating on INR3.75MM Loan ------------------------------------------------------------ CRISIL has been consistently following up with Kabra Builders Private Limited (KBPL) 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 ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 0.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 3.15 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) 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 Kabra Builders 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 Kabra Builders 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/CRISIL A4. Incorporated in July 2007 by Mr Om Prakash Kabra from Mandsaur (Uttar Pradesh), KBPL provides warehousing services (with weighing and cleaning facilities) for agricultural commodities, primarily food grains and spices. It also has a sorting machine installed to provide grading and sorting services on job-work basis and also trades in agricultural commodities. Mr Om Prakash Kabra and Mrs Pratima Kabra are the directors of the company. KANIKA FURNITURE: CRISIL Assigns B+ Rating to INR1.59MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Kanika Furniture Private Limited (KFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Term Loan 1.59 CRISIL B+/Stable (Assigned) Term Loan .23 CRISIL B+/Stable (Assigned) Proposed Fund- Based Bank Limits .18 CRISIL B+/Stable (Assigned) Bank Guarantee 3.00 CRISIL A4 (Assigned) Cash Credit 1.50 CRISIL B+/Stable (Assigned) The ratings reflect the extensive experience of its promoters in the furniture industry and near-term revenue visibility due to moderate order book. These strengths are partially offset by a modest scale, working capital-intensive operations, and weak financial risk profile. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Despite healthy year-on-year revenue growth, scale remains small in the intensely competitive furniture industry, which limits negotiating power with customers and suppliers. Scale is likely to remain muted over the medium term. * Working capital-intensive operations: Gross current assets are estimated at 280 days as on March 31, 2017, due to stretched receivables, and retention money. Inventory cycle is also long on account of lead time for imports. * Modest financial risk profile: Capital structure is moderately leveraged, reflected in estimated total outside liabilities to tangible networth ratio and gearing of 2.52 times and 1.64 times, respectively, as on March 31, 2017. Debt protection metrics were modest with estimated interest coverage and net cash accrual to total debt ratios of 2.27 times and 0.11 time, respectively, for fiscal 2017. Strengths * Extensive experience of promoters: Presence of more than two decades in the furniture segment has enabled the promoters to establish healthy relationship with customers and suppliers. * Moderate order book: High product quality, timely delivery, and established relationship with clients have led the company to bag orders worth INR30 crore as of August 2017. Outlook: Stable CRISIL believes KFPL will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' if increase in scale of operations and profitability leads to larger-than-expected cash accrual and better financial risk profile. The outlook may be revised to 'Negative' in case of lower-than-expected accrual due to reduced order flow or profitability, or if financial risk profile deteriorates because of stretch in working capital cycle or sizeable, debt-funded capital expenditure. Incorporated in 2003 and promoted by Mr Bimal Agarwal and family, KFPL manufactures all types of furniture used in home, offices, and schools. KAURSAIN EXPORTS: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Kaursain Exports Limited's (KEL) 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: -- INR80.00 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating; -- INR28.85 mil. Term loan migrated to non-cooperating category with IND BB+(ISSUER NOT COOPERATING) rating; and -- INR16.15 mil. Proposed-non-fund-based working capital limit migrated to non-cooperating category with Provisional IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 20, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE KEL, incorporated in 2001 and promoted by Mr. Amneesh Mittal and Mr Rajneesh Mittal, manufactures readymade and hosiery garments and exports them mainly to the US, the UAE and Saudi Arabia. Its manufacturing facility is in Ludhiana, Punjab. MAHARSHI ALLOYS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Maharshi Alloys and Steels' (Maharshi Alloys) 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: -- INR90 mil. Fund-based limit migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; and -- INR30 mil. Non-fund-based limits migrated to non-cooperating category with IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 6, 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 1994, Maharshi Alloys is a proprietorship concern engaged in steel trading. Its office is based in the industrial hub of Peenya, Bangalore. MAHE EDUCATIONAL: ICRA Moves B+ Rating to Not Cooperating --------------------------------------------------------- ICRA has moved the long-term rating for the Rs 6.90-crore bank facilities of Mahe Educational and Charitable NRI Trust to the 'Issuer Not Cooperating' category. The long-term rating is now denoted as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING". ICRA has also moved the short-term rating for the Rs 3.60-crore non-fund based bank facilities to the 'Issuer Not Cooperating' category. The short-term rating is now denoted as "[ICRA]A4 ISSUER NOT COOPERATING" Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- Term 5.40 [ICRA]B+(stable) ISSUER NOT Loans COOPERATING; Rating moved to the 'Issuer not Cooperating' category Long-term- Fund 1.50 [ICRA]B+(stable) ISSUER NOT based facilities COOPERATING; Rating moved to the 'Issuer not Cooperating' category Short-term Fund- 3.60 [ICRA]A4 ISSUER NOT based facilities 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 Mahe Educational and Charitable NRI 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, ICRA's Rating Committee has taken a rating view based on the best available information. Key Rating Drivers Credit Strength * Favorable demand and location advantage of the Institute: The demand for dental education is on an increasing trend over the years and this has led to hundred percent occupancy levels in the institute from the year of inception. The higher demand for professional education in India supported by its first entry in the dental education space in Mahe supports the occupancy levels for the institute. * Steady increase in operating income: The operating income of the Trust has grown over the years at a compounded annual growth rate of 45% over FY2010 to FY2015. The addition of student batches and incremental income from hospital, as well as donations have supported the revenue growth in the past years. Credit Weakness * Nascent stage of operations limits the ability of the college to attract higher ranked students: Mahe Educational & Charitable Trust was established in the year 2006, at Mahe, Pondicherry. The Trust commenced operations of its first college, Mahe Institute of Dental Sciences and Hospital (MINDS) in the year 2009. * High regulatory risk: Considering the highly regulated structure of the higher education industry, any adverse Government regulations may impact revenue growth and accruals. Mahe Educational and Charitable NRI Trust was formed in the year 2006 with a view to set up professional educational institutes in Mahe, Puducherry. The trust established Mahe Institute of Dental Sciences and Hospital (MINDS) in the year 2009 at Chalakkara, Mahe and has a hospital unit and dental college. The institute offers undergraduate course in dental sciences (BDS) and is affiliated to the Pondicherry University. The institute had also commenced MDS courses with 16 seats across 8 departments. NIFTY LABS: ICRA Reaffirms B+ Rating on INR26.50cr LT Loan ----------------------------------------------------------- ICRA has reaffirmed the long-term rating at [ICRA]B+ to the INR26.50 crore fund-based limits, INR12.00 crore non-fund based limits and INR14.87 crore unallocated limits of Nifty Labs Private Limited. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund- Based Limits 26.50 [ICRA]B+ (Stable) reaffirmed Long Term Non- Fund Based Limits 12.00 [ICRA]B+ (Stable) reaffirmed Long Term Unallocated Limits 14.87 [ICRA]B+ (Stable) reaffirmed Rationale The reaffirmation of rating is constrained by modest scale of operations in the pharmaceutical industry with muted growth in revenues during FY2017 owing to shutdown of plant for two months for renovation work undertaken; high dependence of revenues on anti-ulcerative and anti-psychotic segments; and high product concentration with top five products contributing to 73-77% of total revenues during the last two years. The rating is further constrained by tight liquidity position of the company as reflected by high utilisation of working capital limits during the last one year despite high credit period received from suppliers; and moderate financial risk profile with gearing of 1.05 times and weak coverage indicators as on March 31, 2017. The rating however positively takes into account over two decades of experience of the promoters in the pharmaceutical industry; and established relationships with reputed clients including Teva Pharma, Dr. Reddy's Laboratories Ltd, Lupin Ltd and Hetero Labs Ltd etc. ICRA also notes that NLPL has received USFDA approval for intermediates during August 2017 coupled with other regulatory approvals received from other regulated markets will support the revenue growth in the medium term. Going forward, ability of the company to increase its revenue, profitability and management of working capital requirements will be the key rating sensitivities. Key rating drivers Credit strengths * Experience of promoters in the pharmaceutical industry: The promoters have been involved in the manufacturing of intermediates and API's for over two decades. The company has established relationship with reputed customers like Dr. Reddy's Laboratories Ltd, Teva Pharma, Lupin Ltd. etc which has resulted in repeated orders over the years. * USFDA approval received during August 2017: NLPL has received USFDA approval for intermediates during August 2017 coupled with other regulatory approvals received from other regulated markets will support the revenue growth in the medium term. Credit weaknesses * Moderate scale of operations: NLPL's scale of operations remained moderate with revenues of INR125.11 crore in FY2017; further, the growth remained muted during FY2017 as the plant was non-operational for two months during FY2017 owing to renovation work of plant to meet USFDA standards. * High product concentration: The product concentration remained high with top five products contributing to 73-77% of revenues during the last two years; further, the dependency on anti- ulcerative and anti-psychotic segment has remained high during the last two years. * Weak liquidity position: The utilization of working capital limits remained high during the last one year despite extended credit period received from its suppliers, Further the company will infuse INR3.0 crore equity during FY2018 which would support the liquidity. * High gearing and weak coverage indicators: The gearing of the company remained moderate at 1.05 times as on March 31, 2017 owing to high working capital requirements on account of high debtor and inventory days, other coverage indicators of the company remained weak with interest coverage of 1.78 times and Debt/OPBDITA of 2.66 times for FY2017. * Profitability exposed to forex risk: The profitability is exposed to forex risk as it does not hedge its export receivables; however the same is partially mitigated with natural hedge available from imports of raw materials. Nifty Labs Pvt. Ltd (NLPL) incorporated in 2005 is promoted by Mr. D. Kesava Reddy, Mr. T. Yellamanda Reddy, Mr. B.Krishna Reddy, Mr. M. Kishore Reddy and Mr. Y. Bharath Reddy having more than two decades of experience in the pharmaceutical industry. The company has set up a manufacturing facility at Kondapally, Krishna District, Andhra Pradesh, with a reaction capacity of 125 KL to produce APIs and intermediates. The company is present in many therapeutic segments such as anti-ulcerative, anti- psychotic, anti-fungal and anti-obese segments with special focus on anti-ulcerative and anti-psychotics drugs. NLPL is USFDA, WHO- GMP, EU-GMP, ISO 9001:2008, ISO14001:2004 certified company. Nifty Pharma Private Limited, a group company established by the same promoters in 2007, has been manufacturing semi-formulations since 2009. In FY2017, as per provisional numbers, the company reported an operating profit of INR11.43 crore on an operating income of INR125.11 crore compared to an operating profit of INR11.71 crore on an operating income of INR122.93 crore in the previous year. NILSHIKHAA INFRAA: Ind-Ra Migrates BB+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nilshikhaa Infraa India Limited's (NIIL) 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: -- INR40 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR250 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 October 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE NIIL was incorporated in 2013 as a partnership firm,. In 2016 it converted into a closely held limited company. The company was incorporated by Arvind Kumar Tripathi, G.P Sahoo, Jagdish Kumar and Shivananda. NIIL undertakes engineering, procurement and construction contracts for rural electrification. The registered office of the company is situated in Indore (Madhya Pradesh). PHTHALO COLOURS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Phthalo Colours & Chemicals (India) Limited's (PCCIL) 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: -- INR130 mil. Fund-based working capital limits migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 17, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1991, PCCIL manufactures phthalocyanine pigments such as green, alpha blue and beta blue at its plant in Gujarat Industrial Development Corporation, Vapi, Gujarat. Its products are sold under the brand Rangday. PLANET PR: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Planet PR Private Limited (Planet PR) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating action is: -- INR80 mil. Fund-based limit assigned with IND B+/Stable rating. KEY RATING DRIVERS The ratings reflect Planet PR's small scale of operations and weak credit metrics. According to provisional financials for FY17, revenue was INR171 million (FY16: INR9 million), interest coverage (operating EBITDA/gross interest expense) was 1.3x (negative 0.2x) and net leverage (total adjusted net debt/operating EBITDAR) was 7.2x (negative 89.3). The improvement in credit metrics was due to an improvement in EBITDA (FY17: INR15 million; FY16: negative INR1 million). Moreover, the rise in revenue was due to an increase in work orders. The ratings also reflect Planet PR's tight liquidity, indicated by full utilisation of the fund-based limits, along with instances of over utilisation, which were regularised within three days, during the last 12 months ended September 2017 The ratings, however, are supported by the directors' experience of over 10 years in the trading business. RATING SENSITIVITIES Negative: Deterioration in credit metrics and liquidity will be negative for the ratings. Positive: A rise in the scale of operations and an improvement in credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in 2004, Planet PR (formerly Planet PR Apartments Pvt Ltd) is engaged in the trading of coal and iron ore. It commenced commercial operations in 2015. POONAM TRADING: CRISIL Reaffirms 'D' Rating on INR17MM Loan ----------------------------------------------------------- CRISIL has been consistently following up with Poonam Trading Company (PTC) for obtaining information through letters and emails dated June 21, 2017 and July 20, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Inland/Import 17 CRISIL D (Issuer Not Letter of Credit 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 Poonam Trading Company. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Poonam Trading Company 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. Set up in 1998 and based in Tenkasi, Tamil Nadu, PTC trades in and processes timber. It is promoted and managed by Mr. Navin Patel and Mr. Haresh Patel. PRAMUKH COTEX: CARE Raises Rating on INR12.78cr LT Loan to BB- --------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Pramukh Cotex Private Limited (PCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 12.78 CARE BB-; Stable Revised Facilities from CARE B+ Detailed Rationale & Key Rating Drivers The revision in the rating assigned to Pramukh Cotex Private Limited (PCPL) takes into account of growth in total operating income and cash accruals along with improvement in capital structure and debt coverage indicators during FY17 provisional (refer to the period April, 1 to March, 31). The rating however continue to be constrained by the its nascent stage of operations, modest scale of operations, low profitability, leveraged capital structure and weak debt coverage indicators, working capital intensive operations, susceptibility of margins to fluctuation in the raw material prices and presence in the highly competitive and fragmented textile industry. These factors continue to be offset by the benefits derived from the experience and resourceful promoters, location advantage and operational support from group entities having presence across the textile value chain. The ability of PCPL to increase scale of operations and improve profit margins and capital structure along with efficient management of working capital are the key rating sensitivities. Detailed description of Key rating drivers Key rating Weakness Short track record of operations with low profitability: PCPL started its operations from November, 2015 and FY17 was its first full year of operations. However, owing to same networth base remained low at INR9.02 crore as on March 31, 2017 thus limiting its financial flexibility to an extent. Further, the profit margins have remained low at around 3.78% during FY17 owing to high competition. Net profit margin also remained low owing to high fixed costs. Leveraged capital structure and weak debt coverage indicators: Capital structure of the entity remained leveraged owing to high dependence on external borrowings to support the operations and low networth base. Further owing to low profitability debt coverage indicators also remained moderately weak. Working capital intensive nature of operations: PCPL's business operations continue to remain working capital intensive with funds being blocked in debtors and inventory. PCPL's maintains inventory to meet the immediate customer demand. Furthermore, owing to intense competition in textile industry PCPL provides around 60-90 days credit to its customers, thus stretching its working capital cycle and resulting in high utilization of working capital limits. Presence in competitive industry: PCPL is engaged into weaving of fabric is highly fragmented with a high level of competition from both the organized and largely unorganized sector, along with the susceptibility of margins to volatile raw material prices. Indian textile industry, which is the second largest employer after agriculture and accounts for 4 per cent of the GDP, is inherently cyclical in nature. Any adverse changes in the global economic outlook as well as demand-supply scenario in the domestic market directly impacts demand of the textile industry. Textile industry as a whole remains vulnerable to various factors such as mobilization of adequate workforce and changes in government policies for overall development of the textile industry. Any significant changes in such factors will have direct impact on the business operations of the company. Key rating Strengths Vast experience of promoters in the textile industry coupled with operational support from group entities: The company belongs to the Deesan group having presence across all segments of cotton textile industry (viz. from cultivation of cotton to manufacturing of garments). The group has been in business of textile since 1996 and over the years has expanded its presence across the textile value chain. The group is promoted by Mr Amrish Patel and member of the resourceful Patel family which runs the Deesan Group and Shri Vile Parle Kelavani Mandal (trust runs multiple educational institutions in Mumbai and Maharashtra namely NMIMS, NM College of commerce and economics, Mithibai College of Arts, Chauhan institute of Science, Amrutben Jivanlal College of Commerce and Economics, C.N.M. School and Mukeshbhai R. Patel Military School). Incorporated in 2013, Pramukh Cotex Private Limited (PCPL) is engaged in weaving of fabric for shirting and dress material for domestic market at Dahiwad, Shirpur, Dhule. PCPL's plant is established under the "Group Work Shed Scheme" (Scheme of Integrated Textile Park (SITP) of Ministry of Textile, the Government of India) promoted by Deesan Infrastructure Private Limited (part of Deesan group). GWSS consist of several SSI unit within it out of which around 28 SSI units have installed capacity of 222 looms as on September 22, 2017 with capacity to manufacture around 17.98 million meter of grey fabric and will provide job work services only to PCPL. PREMIER PLASTICS: CARE Moves B+ Rating to Not Cooperating --------------------------------------------------------- CARE Ratings has been seeking information from Premier Plastics to monitor the rating(s) vide e-mail communications/ letters dated August 31, 2017 & June 23, 2017, etc. 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 SEBI guidelines, CARE has reviewed the rating on the basis of publicly available information which however, In CARE's opinion is not sufficient to arrive at fair rating. Further, Premier Plastics has not paid the surveillance fees for the rating exercise as agreed to in its rating aggrement. The ratings of Premier Plastics 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 12.10 CARE B+; Issuer Not Facilities Cooperating Short-term Bank 0.90 CARE A4; Issuer Not Facilities Cooperating Detailed description of the key rating drivers Key rating weakness Small and fluctuating scale of operations: Despite being operational for nearly two decades, the scale of operations of the firm has remained small and fluctuating marked by total operating income and gross cash accruals of INR9.78 crore and INR1.07 crore respectively during FY15 (FY refers to the period April 1 to March 31). The small scale limits the firm's financial flexibility in times of stress and deprives it of scale benefits. Elongated collection and inventory holding period: The average collection period and inventory holding period stood elongated for FY15. Further, the firm maintains inventory in form of raw material for smooth flow of production. Being a manufacturers, the firm has to maintain the finished goods inventory of different shapes and sizes to meet the immediate demand of its customers. The same resulted into high an average inventory holding days of 163 days for FY15. Being present in a highly competitive industry, the company has liberal credit policy resulting in high average collection period of 134 days for FY15. The firm has able to negotiate better on credit terms resulting into payable period stood at 264 days for FY15. Furthermore, the average of working capital CC limits remained utilized around 63% for 12 month period ended April, 2016 and low current ratio as on the last three balance sheet dates reflects working capital intensive nature of operations. Industry risk and susceptibility of margins to the volatility in the raw material prices: The main raw materials for PP are PVC (Polyvinyl Chloride), leather, etc., the prices of which are linked with crude oil prices and are very volatile. PP's profitability depends to a large extent on the movement in raw material prices. With intense competition in the footwear segment mainly on account of significant presence of the unorganized sector and availability of cheap imported products, it is not always possible to pass on the entire increase in raw material prices to the customers, which put pressure on the company's profitability. Since there is a long time lag between raw material procurement and liquidation of inventory, the firm is exposed to the risk of adverse price movement resulting in lower realization than expected. Further, footwear sector is highly dependent on fashion trends, consumer spending habits as well as economic cycles. Therefore, the companies need to manage their inventories according to fashion and changing trends. At times, a fashion is short-lived, thus there is a risk of inventory getting obsolete and does not meet the taste and preferences of the customers leading to losses. Competition from organized and unorganized players: Footwear industry is highly competitive in nature due to low entry barriers on account of low capital investment required to set up a new facility. Also, operations are labor intensive resulting in presence of a large number of unorganized players. Further, there are various unorganized players based domestically and internationally operating in the industry which provides further competition on scale and profitability to small companies like PP. Key rating strength Experienced proprietor: PP is being managed by Mr. Sudhir Gupta who is a graduate by qualification and has overall experience of nearly two decades in the industry through his association with this entity and an associate concern "Royal Polymers". He looks after the overall operations of the firm. Moderate profitability margins and capital structure: The profitability margins of the firm stood moderate for the past three financial years (FY13-FY15). The profitability margins of the firm have been improving on y-o-y basis from 17.19% in FY13 to 23.05% in FY15 as the quantity sold of the sole of "Bugatti" shoes which fetches better margin has increased in the past years. The capital structure of the firm stood comfortable marked by debt equity and overall gearing on account of moderate proprietor's capital base. Debt equity and overall gearing stood at .55x and 0.83x respectively as on March 31, 2015 as against 2.84x and 4.20x as on March 31, 2014 wherein the improvement in debt equity was on account of repayment of term loan coupled with higher partner's capital base owing to accretion of profits along with infusion of capital by the proprietor. Also, lower utilization of working capital limits as on the last balance sheet date aided into improvement in overall gearing makes the capital structure comfortable. However, during FY16, the capital structure is anticipated to be leveraged on account of debt funded capex. The working capital limits of the firm remained utilized for around 63% for 12 months ended April, 2016. Agra based, Premier Plastics (PP), is a proprietorship concern established in 1997 by Mr Sudhir Gupta. The firm is engaged in manufacturing of TPR soles, leather soles, rubber sheet sole and heels. The key raw material used in manufacturing are TPR compound, PVC, leather and thermo plastic rubber which is procured domestically from the manufacturers and distributors located in Delhi-NCR, Jammu, Silvassa, Agra etc. The firm mainly sells its products to manufacturers of leather and leather products located in Agra, Chennai, and Noida etc. The products mainly show sole manufactured by the firm is sold under the brand "Bugatti". The firm has an associate concern i.e. Royal Polymers; also engaged in manufacturing of sole. R.V. RAYANAM: ICRA Assigns B+ Rating to INR15cr Bank Loan --------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B+ to the INR10.00 crore fund based limits and INR15.00 crore non fund based limits of R.V. Rayanam (RVR). The outlook on the long term rating is 'stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Secured Overdraft 10.00 [ICRA]B+ (Stable) assigned Non Fund-based- Bank Guarantee 15.00 [ICRA]B+ (Stable) assigned Rationale The assigned rating is constrained by the modest order book size of INR43.46 crore as on August 31, 2017 which is 0.80 times FY2017 turnover; leveraged capital structure with gearing of 3.41 times as on March 31, 2017 due to large capital withdrawals in FY2017; and modest coverage metrics with Net-Cash-Accruals/Total- Debt of 7.41% and Debt/OPBITDA of 2.07 times for FY2017. The rating is further constrained by the high client and project concentration risk given that RVR has only two work orders to be executed for Tirupati Municipal Corporation; high segment and geographic concentration risk with order execution limited to construction of civil buildings only in Andhra Pradesh; and highly competitive construction industry marked by presence of numerous players where tenders are largely awarded on lowest price quoted. ICRA also notes that revenues are vulnerable to budgetary allocations by the state government and municipalities; and risks arising from partnership nature of the firm viz. capital withdrawal seen during FY2017. The rating, however, favorably factor in the promoters' experience of more than four decades in execution of civil contracts; substantial improvement in scale of operations with revenues increasing to INR54.14 crore in FY2017 from INR18.02 crore in FY2016 due to higher order book execution; and healthy operating profitability of 12-13% over the past two years due to high margins in the ongoing projects. Going forward, the company's ability to increase the order book and efficiently manage its working capital requirements would be the key credit rating sensitivities. Key rating drivers Credit strengths * Longstanding experience of promoters: The main promoter of the firm, Mr. R.V. Rayanam, has been in the field of civil construction since 1970 while his son, Mr. R. Satish has more than 25 years of experience in executing civil contracts. Prior to establishment of the partnership firm, the contracts were being executed under the proprietorship of Mr. R. V. Rayanam. * Healthy profitability over the years: The firm's operating profitability is high at ~12-13% in the past two years due to execution of high margin projects. The management is conscious in choosing the project and is participating in work orders where the margins are relatively higher. * Improved scale of operations in FY2017: RVR's scale of operations increased substantially with revenues increasing to INR54.14 crore in FY2017 from INR18.02 crore in FY2016 due to higher execution of two large orders received from the Tirupati Municipal Corporation during FY2017. * Recognition as a special class contractor: The firm is recognised as a special class contractor by the Government of Andhra Pradesh which enables it to participate in a variety of projects for the State Government, though RVR is primarily engaged in construction of civil buildings. Credit weaknesses * Modest order book size: The firm has a modest order book size of INR43.46 crore as on August 31, 2017 which translates to order book to FY2017 turnover ratio of 0.80 lending revenue visibility in the near term. Further, the order inflows for the firm have been lumpy over the past four years due to limited participation in larger sized orders with low success ratio. * Significant capital withdrawals during FY2017: The partners of the firm have withdrawn capital during FY2017 which led to an increase in gearing to 3.41 times as on March 31, 2017 from 2.73 times as on March 31, 2016 and low NCA/Debt of 7.41% in FY2017. * High project and client concentration risk: The firm has high project and customer concentration risk given that it has only two work orders on hand and both are being executed for Tirupati Municipal Corporation. * High geographic and sectoral concentration risk: The geographic concentration risk of the firm is high with work order execution limited to Andhra Pradesh. Further, the firm's work orders are mostly confined to construction of civil buildings for various departments of Government of Andhra Pradesh. * High competitive intensity in construction industry: The firm faces high competition from numerous other players in the construction industry. Given that the firm participates in work orders for various government departments where business is tender based, sustainability of profit margins is vulnerable. R V Rayanam (RVR) is a partnership firm established in August 2005 and is a special class contractor recognised by the Government of Andhra Pradesh. It is a Kakinada based construction firm promoted by Mr. R V Rayanam who has more than four decades of experience in civil construction industry. RVR is in the business of execution of civil, electrical, mechanical and engineering contracts, construction of buildings, educational and other institutional infrastructure primarily for central and state government department works. RAVELS APPARELS: CRISIL Reaffirms B+ Rating on INR3.5MM Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long term facilities Ravels Apparels Private Limited (RAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 3.5 CRISIL B+/Stable (Reaffirmed) Export Packing Credit 3.5 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect modest scale of operations in the intensely competitive readymade garments industry and working capital intensive operations. These weaknesses are partially offset by the extensive experience of the promoters in the industry and moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: With revenue of INR28.72 crore in fiscal 2017, scale of operations remains small, which limits the bargaining power with suppliers and customers. * Working capital intensive operations: Gross current assets were 167 days as on March 31, 2017, driven by large receivables and inventory days of 67 and 87, respectively. However, working capital management is partially supported by credit of 75 days extended by suppliers. Bank limit utilisation has been moderate at 90% over the 12 months through August 2017. Strengths * Extensive experience of the promoters: Benefits from the promoters' three decade-long experience in the industry and established relationships with customers leading to increased orders should support business. * Moderate financial risk profile: Gearing was moderate at 1.36 times as on March 31, 2017, while debt protection metrics were moderate, with estimated interest coverage and net cash accrual to total debt ratios of 1.9 times and 0.08 time, respectively, for fiscal 2017. Outlook: Stable CRISIL believes RAPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if working capital cycle is stable and increase in scale of operations results in higher cash accrual. The outlook may be revised to 'Negative' if decline in profitability leading to low cash accrual, large debt-funded capital expenditure, or stretch in working capital cycle weakens liquidity. Set up in 1983 as a partnership firm, Ravels International, it was reconstituted as a private limited company with the current name in July 1993. RAPL is promoted by Mr Vinod Kapahi and family. RELIABLE POLYESTER: CARE Reaffirms B+ Rating on INR5.5cr Loan ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Reliable Polyester Private Limited (RPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 5.50 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of Reliable Polyester Private Limited (RPPL) continue to remain constrained on account of its small scale of operations, thin profit margins, moderately leveraged capital structure, weak debt coverage indicators and elongated operating cycle during FY17 (refers to the period April 1 to March 31). Furthermore, the rating continues to remain constrained on account of susceptibility of its operating margins to fluctuations in raw material price and presence in the highly fragmented and competitive textile industry. The rating, however, continue to derive comfort from the experience of promoters and location advantage by way of its presence in textile hub of Surat. RPPL's ability to increase its scale of operations with improvement in profitability, solvency position and debt coverage indicators along with better working capital management will be the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operations and thin profit margins: Scale of operations of RPPL continues to remain small as marked by TOI of INR21.60 crore during FY17 and net worth base of INR4.20 crore as on March 31, 2017. Profit margins continue to remain thin and below unity on the back of high interest costs. Moderately leveraged capital structure and weak debt coverage indicators: Capital structure stood moderately leveraged marked by an overall gearing ratio of 1.62x as on March 31, 2017 while debt coverage indicators as marked by total debt to GCA stood weak at 19.95x as on March 31, 2017 owing to low level of cash accruals. Presence into highly fragmented and competitive textile industry RPPL operates into highly fragmented and competitive textile industry with presence of large number of small and regional players which restricts pricing flexibility as well. Key Rating Strengths Experienced promoters: All the promoters of the company holds healthy experience of more than a decade individually in the same line of business. Location advantage by way of presence in textile hub of Surat RPPL's plant is located in Surat (Gujarat) which is considered to be one of the major textile hubs in India. Surat also occupies a major position in the production of manmade fabrics. The presence in textile hub provides additional advantage of easy market availability for its product to RPPL. Surat-based (Gujarat) RPPL, a family run business was incorporated in May 1988, by Mr. Radha Mohan Mittal which is now managed by Mr. Ruchir Radha Mohan Mittal and Mrs. Esha Ruchir Mittal. The company is engaged into the manufacturing of greige (unprocessed) polyester fabrics from polyester yarn (primarily Air Textured Yarn (ATY)), prior to which it discontinued the operations of manufacturing polyester yarn. It finds uses in the textile industry, post converting the same into finished fabrics. RPPL operates from its sole manufacturing facility located in Surat (Gujarat) with 135 shuttle-less water jet looms having an installed capacity of 1.20 crore metres of greige fabric as on March 31, 2017. RENAATUS PROCON: CRISIL Reaffirms 'B' Rating on INR9.80MM Loan -------------------------------------------------------------- CRISIL has been consistently following up with Renaatus Procon Private Limited (RPPL) 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 2.84 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Long Term Loan 9.80 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 2.36 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 Renaatus Procon 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 Renaatus Procon 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 2011, RPPL manufactures aerated autoclaved concrete (AAC) blocks. The company is based in Erode (Tamil Nadu) and its daily operations are managed by Mr Selvasundaram and his family members. SALASAR PLYWOOD: ICRA Moves B+ Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA has moved the ratings for the INR8.50 crore bank facilities of Salasar Plywood Private Limited (SPPL) 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 limits 0.50 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non-fund based 8.00 [ICRA]A4 ISSUER NOT limits 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 April 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 APPL, ICRA has been trying to seek information from the entity so as to monitor its performance and had also sent repeated reminders to the company for payment of surveillance fee that became overdue, 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 track record of the promoters through established group in timber industry: SPPL was established in the year 2011 by Mr. Rakesh Agrawal and Mr. Mukesh Agarwal, and forms part of the family owned 'Purbanchal Group'; which has an experience of over 15 years in the wood business. * Proximity to Kandla port results in ease of procurement of imported timber: The company is located in Gandhidham, Gujarat and it benefits from its proximity to the Kandla port as it has specialized machinery for unloading of logs and this has led to growth of timber based companies in the nearby area. Credit weaknesses * Limited value addition and intense competition led to reduced bargaining power- The firm does not enjoy high bargaining power in terms of pricing due to the limited value-additive nature of the business and intense competition from numerous players in the unorganised market, leading to pricing pressures. * Vulnerability to currency fluctuations primarily due to import oriented nature of operations; absence of formal hedging policy - The Company relies upon imported logs for its raw material requirement, therefore the profitability of the company is exposed to any adverse foreign exchange fluctuations as the company does not hedge any of its forex exposure. * Unfavourable regulatory changes in key supplying markets - Sourcing of timber logs vulnerable to supply constraints caused due to political instability, adverse foreign trade policy and domestic deforestation policy in supplier nations. Salasar Plywood Private Limited (SPPL) was incorporated in 2011 and is promoted by Mr. Rakesh Agarwal and Mr. Mukesh Agarwal, who have vast experience in the timber business. The company is currently engaged in the trading of imported timber, while it proposes to commence sawing of imported timber in the near to medium term. The company's manufacturing facility is located at Gandhidham, in Kutch District (Gujarat). SPPL forms part of the Purbanchal Group. The Purbanchal Group (PG) is promoted by Mr. Rakesh Agarwal, Mr. Mukesh Agarwal and Mr. Omprakash Agarwal and is engaged across the value chain of timber processing i.e. trading to further manufacturing of plywood, baggase board, laminates. The facilities are located in Gandhidham, Gujarat and it has extensive experience in the industry. The group companies operating under PG are Amul Boards Pvt Ltd., Purbanchal Laminates Pvt Ltd., Landmark Veneers Pvt Ltd., Purbanchal Veneers, Purbanchal Lumbers Pvt Ltd. and Salasar Plywood Pvt Ltd., which are all headed by the same management and have common control. In FY2016, the company reported a net profit of INR0.05 crore on an operating income of INR11.80 crore, over a net profit of INR0.06 crore on an operating income of INR12.65 crore in FY2015. SANT DEEPAK: ICRA Lowers Rating on INR11.25cr Term Loan to D ------------------------------------------------------------ ICRA has downgraded a long-term rating to [ICRA]D from [ICRA]B- for INR13.00-crore fund based facilities of Sant Deepak Education and Charitable Trust. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Term 11.25 [ICRA]D; Downgraded Loan from [ICRA]B- Fund-based- 1.75 [ICRA]D; Downgraded Overdraft from [ICRA]B- Rationale The rating revision factors in the delay in debt servicing by the trust owing to weak performance in FY2017 coupled with the stretched receivables. While the trust incurred significant capex in FY2015 and FY2016, slow growth in demand for engineering courses resulted in a weak performance for FY2016. The rating will remain sensitive to the improvement in the debt servicing track record of the company. Key rating drivers Credit weaknesses * Delay in debt repayments: Irregularities in debt servicing with delay in the principal repayment; stretched receivables resulted in stressed liquidity position. Global Research Institute of Management & Technology, Radaur is located in the state of Haryana in the Yamuna Nagar district. The institution was established in year 2008 with the approval of AICTE, affiliation of Kurukshetra University, Kurukshetra and DTE, Panchkula. The institute is functioning under the aegis of Sant Deepak Educational & Charitable Trust (SDECT) with a Managing Committee to look after routine management functions. The broad areas of administration, e.g. planning, student amenities & welfare, faculty development, staff welfare, infrastructure development etc. are entrusted to various committees for the smooth functioning. The institute follows the academic calender of Kurukshetra University, Kurukshetra. The trust is organized by a group of professionals. The chairman of the trust Mr. Sanjay Jindal is a chartered accountant and has experience of 25 years of profession, finance & accounts. Further, he also looks after many other group companies which are mainly involved in Power Generation Companies, Printing & Packaging, Brass Sheet Manufacturing and various others. Further, the secretary of the Trust Mr. Deepak Dhawan is also chartered accountant. In FY2017, on a provisional basis, the company reported a net profit of INR0.06 crore on an operating income of INR5.7 crore, as compared to a net profit of INR0.01 crore on an operating income of INR4.7 crore in the previous year. SHREEPATI JEWELS: ICRA Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA has moved the rating for the INR100.00 crore bank facilities of Shreepati Jewels to the 'Issuer Not Cooperating' category. The rating is now denoted as: "[ICRA]D ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term, Fund 100.00 [ICRA]D ISSUER NOT Based Term Loan COOPERATING; Rating moved Limits to the 'Issuer Not Cooperating' category Rationale The rating takes into account continued delays in debt servicing by the entity. As part of its process and in accordance with its rating agreement with Shreepati Jewels, ICRA has been trying to seek information from the entity 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. 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. Key rating drivers Credit strengths * Project location in South Mumbai: Shreepati Jewels is a redevelopment project located at Girgaum, a prominent locality in South Mumbai. Credit weaknesses * Stretched liquidity position: The firm has a stretched liquidity position due to modest booking status and delays in construction of the ongoing project, leading to delay in debt servicing. Shreepati Jewels (SJ) was incorporated in 2003 for the construction of a residential project in Girgaum, Mumbai. The Shreepati Group is promoted by Mr. Rajendra Chaturvedi. The Group is engaged in the re-development of residential real estate projects, primarily in South Mumbai. SHRI RAM: CARE Moves B+ Rating to Issuer Not Cooperating -------------------------------------------------------- CARE Ratings has been seeking information from Shri Ram Agro Sciences Private Limited to monitor the rating(s) vide e-mail communications/letters dated June 27, 2017 & June 23, 2017, etc. 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 SEBI guidelines, CARE has reviewed the rating on the basis of publicly available information which however, In CARE's opinion is not sufficient to arrive at fair rating. Further, Shri Ram Agro Sciences Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its rating agreement. The ratings of Shri Ram Agro Sciences Private Limited will now be denoted as CARE B+; 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). CARE gave these ratings: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 15.00 CARE B+; Issuer Not Facilities Cooperating Detailed description of the key rating drivers Key rating weakness Small and fluctuating scale of operation: The scale of operations has remained small and fluctuating marked by a total operating income (TOI) and gross cash accruals of INR20.93 crore and INR1.71 crore respectively during FY15 (refers to the period April 1 to March 31). There were fluctuations in the total operating income during FY13-15 mainly on account of fluctuating demand from its primary customer. The total operating income was INR16 crore in FY16 (unaudited). The small scale limits the company's financial flexibility in times of stress and deprives it of scale benefits. Weak coverage indicators: The coverage indicators of the company remained weak for the past three financial years i.e. FY13-FY15 marked by interest coverage ratio and total debt/ GCA .The same deteriorated in FY15 and stood at 1.97x and 11.33x respectively as against 2.11x and 10.37x respectively in FY14. The interest coverage ratio deteriorated on account of high interest expense, while the deterioration in Total debt/gross cash accruals was on account of lower cash accruals. Elongated operating cycle: The operating cycle of the company stood elongated at 175 days for FY15 mainly on account of high collection period which stood at 206 days. The collection period stood high on account of significant amount of sale made to associate company i.e. Bhartiya Beej Nigam Limited on credit. The company receives credit period of 30-60 days from its suppliers. The company purchases breeder seeds (initial level or raw seeds) and finally processes them into certified seeds which take a conversion period of around three months. Experienced promoters: SRAS is currently being managed by Mr Jasvinder Singh, Mrs Jasmeet Kaur, Mr Manpreet Singh and Mr Jeetender Singhal. Mr Jasvinder Singh is a graduate and holds nearly two decades of experience in the seed processing industry through his association with associate concerns. He looks after the overall affairs of the company with adequate support from other two Directors i.e. Mrs Jasmeet Kaur and Mr Manpreet Singh. Moderate profitability margins and capital structure: The profitability margins of the company remained moderate though fluctuating marked by PBILDT margin of 16.46% in FY15 as against 19.74% in FY14 on account of volatility in the price of breeder seeds, which was not passed through in nature in view of high competition. The PAT margin declined from 5.34% in FY14 to 4.38% in FY15 due to higher financial charges. However, the same stood at moderate level. The capital structure of the company stood moderate marked by debt equity ratio of 0.37x and overall gearing ratio of 0.93x and as on March 31, 2015. The capital structure has been improving on y-o-y basis as on balance sheet date of last three financial years (FY13-FY15) due to repayment of loans and increase in net worth owing to accretion of profits to reserves. Presence in the agro cluster at Uttarakhand: SRAS is favorably located in the vicinity of the major wheat & paddy growing areas of the country. Here, the company has easy access to raw material and also to farmers who germinate seeds for SRAS. Owing to its location, it is in a position to save on the freight component of incoming of raw material and outgoing finished goods. Fragmented and competitive nature of industry: SRAS operates in a highly fragmented and unorganized market for agricommodities with presence of large number of small sized players. The industry is characterized by low entry barriers due to minimal capital required and easy access to clients and suppliers. The presence of big sized players with established marketing & distribution network intensifies the competition further in the industry. Susceptibility to vagaries of nature: SRAS is engaged in the business of agro products. As agro products are highly dependent on the climatic conditions, the performance of SRAS may get adversely affected due to adverse weather conditions resulting into lower availability of required commodities &/or volatility in price movement. Rudrapur-based (Uttarakhand) Shri Ram Agro Sciences Private Limited (SRAS) was incorporated in 2011 by Mr Jasvinder Singh, Mrs Jasmeet Kaur, Mr Jeetender Singhal and Mr Manpreet Singh. The company is engaged in processing and trading of wheat, paddy, vegetables, green manure and fodder seeds. The seed processing unit of the company is located at Rudrapur, having a processing and grading capacity of 7500 tonne per annum (TPA) as on March 31, 2015. SRAS purchases the breeder seeds (initial level or raw seeds) of wheat and paddy from the state authorities or agriculture universities and provides them to farmers for germination. After the receipt of germinated foundation seeds from the farmers, the company gets them certified from a seed certifying agency. These certified seeds are graded and then sold to the retailers and distributors in Uttar Pradesh, Bihar, Punjab, Uttranchal, Haryana and West Bengal. The company also sells to Government agencies like National Seeds Corporation (NSC), Bihar Rajya Beej Nigam Limited and National Cooperative Consumer's Federation of India Limited (NCCF). SRAS sells the certified seeds under the brand name of 'Shri Ram Seeds'. SHRI VASUDEVA: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shri Vasudeva Weaving Mills Private Limited's (Vasudeva) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the surveillance 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: -- INR130 Fund-based limit migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; -- INR3.3 mil. Non-fund-based limit migrated to non-cooperating category with IND A4(ISSUER NOT COOPERATING) rating; and -- INR136.7 mil. Term loans migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 27, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Vasudeva was incorporated in 2012 and started operations in February 2015. It is engaged in the business of weaving, knitting, manufacturing and dealing of cloth and fabrics. SIDDARTH INTERCRAFTS: ICRA Moves B+ Rating to Not Cooperating ------------------------------------------------------------- ICRA has moved the ratings for the INR10.00-crore bank facilities of Siddarth Intercrafts 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 ---------- ----------- ------- Long-term bank 2.50 [ICRA]B+(Stable) outlook Facilities Assigned; ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated 7.50 [ICRA]B+ (Stable)/[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 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 Siddarth Intercrafts 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 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Long track record of the firm in the garmenting industry of over two decades which has helped establish relations with clients resulting in repeat orders * Favourable outlook on demand from export markets over medium term Credit weaknesses * Small scale of operations with high volatility in operating profitability as the margins remain exposed to fluctuations in raw material costs and currency exchange rates * Fragmented nature of domestic apparel export market and intense competition from other low cost countries also limits the pricing power * High working capital intensive operations coupled with seasonal nature of demand could result in stretch liquidity during peak season The Siddarth Group comprises of three entities- namely, Siddarth Organisation, Siddarth Organisation Limited and Siddarth Intercrafts Private Limited and is engaged in the manufacturing of ladies garments, kids garments, scarfs and fashion accessories. SIDDARTH ORGANISATION: ICRA Moves B+ Rating to Not Cooperating -------------------------------------------------------------- ICRA has moved the ratings for the INR10.00-crore bank facilities of Siddarth Organisation 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 bank 2.16 [ICRA]B+ (Stable); ISSUER NOT facilities COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated 7.84 [ICRA]B+ (Stable)/[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 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 Siddarth Organisation, 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 track record of the firm in the garmenting industry of over two decades which has helped establish relations with clients resulting in repeat orders * Favourable outlook on demand from export markets over medium term Credit weaknesses * Small scale of operations with high volatility in operating profitability as the margins remain exposed to fluctuations in raw material costs and currency exchange rates * Fragmented nature of domestic apparel export market and intense competition from other low cost countries also limits the pricing power * High working capital intensive operations coupled with seasonal nature of demand could result in stretch liquidity during peak season The Siddarth Group comprises of three entities- namely, Siddarth Organisation, Siddarth Organisation Limited and Siddarth Intercrafts Private Limited and is engaged in the manufacturing of ladies garments, kids garments, scarfs and fashion accessories. SIDDARTH ORG. LTD: ICRA Moves B+ Rating to Not Cooperating ---------------------------------------------------------- ICRA has moved the ratings for the INR10.00-crore bank facilities of Siddarth Organisation 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 ---------- ----------- ------- Long-term bank 4.20 [ICRA]B+(Stable) ISSUER NOT Facilities COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated 5.80 [ICRA]B+(Stable)/[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 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 Siddarth Organisation 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 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Key rating drivers Credit strengths * Long track record of the firm in the garmenting industry of over two decades which has helped establish relations with clients resulting in repeat orders * Favourable outlook on demand from export markets over medium term Credit weaknesses * Small scale of operations with high volatility in operating profitability as the margins remain exposed to fluctuations in raw material costs and currency exchange rates * Fragmented nature of domestic apparel export market and intense competition from other low cost countries also limits the pricing power * High working capital intensive operations coupled with seasonal nature of demand could result in stretch liquidity during peak season The Siddarth Group comprises of three entities- namely, Siddarth Organisation, Siddarth Organisation Limited and Siddarth Intercrafts Private Limited and is engaged in the manufacturing of ladies garments, kids garments, scarfs and fashion accessories. SIVAPARAMESH SPINNING: CRISIL Reaffirms B+ INR4.50MM Loan Rating ---------------------------------------------------------------- CRISIL has been consistently following up with Sivaparamesh Spinning Mill Private Limited (SSMPL) for obtaining information through letters and emails dated July 14, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .18 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 2.50 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 2.82 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Rupee Term Loan 4.50 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 Sivaparamesh Spinning Mill 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 Sivaparamesh Spinning Mill 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/CRISIL A4. Set up in 2014 in Salem, Tamil Nadu, SSMPL manufactures cotton yarn. Operations are managed by Mr. Shiva Kumar. SONAMOTI AGROTECH: Ind-Ra Migrates 'B+' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sonamoti Agrotech Private Limited's (SAPL) 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: -- INR77.5 mil. Term loan migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING) rating; and -- Fund-based working capital limit migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 23, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SAPL was incorporated in 2010 by Kasera family of Patna, Bihar for setting up a paddy processing unit at Karmali Chak in Patna. The company commenced the commercial production at its unit in November 2013 with rice processing capacity of 58,400MTPA. SRI MAHESWARI: Ind-Ra Assigns 'B-' Issuer Rating; Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sri Maheswari Wood Industries (SMWI) a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable. Instrument-wise rating action is: -- INR100 mil. Fund-based working capital limits assigned with IND B-/Stable/IND A4 rating. KEY RATING DRIVERS The ratings reflect SMWI's small scale of operations and weak credit metrics due to high debt levels. As per FY17 provisional financials, revenue was INR117 million (FY16: INR109 million), gross interest coverage (operating EBITDA/gross interest expense) was 1.1x (0.9x) and net leverage (adjusted net debt/operating EBITDA) was 23.2x (20.3x). EBITDA margin was volatile between 2.2% and 3.1% over FY13-FY17 (FY17: 3.1%, FY16: 3.6%) due to fluctuations in timber prices and foreign exchange arising from import of timber. The ratings also reflect the firm's moderate liquidity position with around 84.1% and 85.8% utilisation of fund-based non-fund- based limits, respectively, during the 12 months ended September 2017. The firm had an elongated net working capital cycle of 248 days in FY17P (FY16: 279 days) on account of higher inventory days. The ratings are also constrained by the partnership structure of the organisation. However, the ratings draw support from promoter's experience of more than five decades in the trading of timber. RATING SENSITIVITIES Positive: Any substantial growth in the top-line with an improvement in the EBITDA margin leading to a sustained improvement in the credit metrics could be positive for the ratings. Negative: Any further elongation of the working capital cycle leading to stretched liquidity position could be negative for the ratings. COMPANY PROFILE Incorporated in 1992, SMWI is a partnership firm situated in Shencottai, Tamil Nadu engaged in the trading of logs and sawn timbers. The firm imports 100% of timber from countries such as Malaysia, Burma, Ghana and South Africa, among others. and sells it locally in Kerala, Tamil Nadu and Karnataka. U S SRIVASTAVA: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated U. S. Srivastava Memorial Educational Society's (USSME) bank loan ratings 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 rating actions are: -- INR42.9 mil. Term loan migrated to non-cooperating category with IND BB(ISSUER NOT COOPERATING) rating; and -- INR30 mil. Bank overdraft facility migrated to non- cooperating category with IND BB(ISSUER NOT COOPERATING rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 8, 2015. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the ratings. COMPANY PROFILE U. S. Srivastava Memorial Educational Society has been involved in the field of education for the last two decades. The society offers various undergraduate programs and postgraduate programs in several branches of engineering, information technology, management and pharmacy. It also has a school - Sherwood Academy affiliated to Indian Certificate of Secondary Education. UJJWAL LUXURY: CARE Lowers Rating on INR12.41cr LT Loan to 'D' -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Ujjwal Luxury Hotels Private Limited (ULHPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 12.41 CARE D Revised from Facilities CARE B Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of ULHPL is primarily constrained on account of delays in debt servicing owing to its stressed liquidity position. Detailed description of the key rating drivers Key Rating Weakness Delays in debt servicing owing to stress liquidity position: The firm has completed its project in November 2015 and FY17 (FY refers to the period April 1 to March 31) is first full year of operations of the firm. The project of the firm has not been stabilized and has not generated adequate GCA to repay its debt obligations due. There are instances of delay in interest and instalment of term loan. ULHPL was incorporated in June, 2011 by Mr. Bhagirath Poonia and Mr. Daya Ram Poonia with an objective to establish a three star hotel at Jaipur (Rajasthan). ULHPL has completed construction work on the hotel in the middle of November 2015 and has started its operations from December 2015. ULHPL has signed an agreement with Supertech Hotels Private Limited (SHPL) for "Hyphen" brand as well as for management of the hotel in January 8, 2013 for next five years. The hotel will have a facility of total 75 deluxe rooms along with one restaurant cum bar and one banquet hall with capacity of 400 persons. UMIYA INDUSTRIES: ICRA Moves 'B' Rating to Not Cooperating ---------------------------------------------------------- ICRA has moved the ratings for the INR6.00 crore bank facilities of Umiya Industries to the 'Issuer Not Cooperating' category. The ratings are now denoted as: "[ICRA]B(Stable)/[ICRA]A4 ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term, Fund- 3.00 [ICRA]B (Stable) ISSUER NOT Based Limits- COOPERATING; Rating moved Overdraft Limits to the 'Issuer Not Cooperating' category Short-term, Non- 3.00 [ICRA]A4 ISSUER NOT Fund Based Letter COOPERATING; Rating moved of Credit/Buyers to the 'Issuer Not Credit Limits 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. 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 Umiya Industries, 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 * Experience of promoter in the plastic resins and polymers business: Since the establishment of UI in 2004, the promoter has gained experience in manufacturing Polypropylene (PP) woven sacks, and from FY2016, the firm forayed into trading plastic resins and polymers. Credit weaknesses * Small scale of operations: The firm operates on a small scale, which is further constrained by the business risks associated with the polymer trading business including high competitive intensity and fragmentation and exposure to commodity price risks. * Financial risk profile: The firm's financial risk profile is characterised by thin profitability arising from the trading nature of the business and stretched capital structure mainly due to a low net-worth base. Due to the partnership constitution, UI has limited ability to raise capital and is vulnerable to inherent withdrawal risks. * Regulatory risks: The business operations are exposed to regulatory risks arising from adverse changes in import and anti- dumping duties on polymers. Established by Mr. Kantibhai Khanpara as a partnership firm in 2004, Umiya Industries (UI) is engaged in manufacturing Polypropylene (PP) woven sacks. Later in FY2016, the firm also started trading in plastic resins and polymers. VIJAI ELECTRICALS: Ind-Ra Withdraws Provisional WD Loan Ratings --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Vijai Electricals Limited's provisional bank loan ratings as follows: -- INR60 mil. Proposed fund-based facilities withdrawn with WD rating; and -- INR574.7 mil. Proposed non-fund-based facilities withdrawn with WD rating. KEY RATING DRIVERS The ratings have been withdrawn as the company did not proceed with the instruments as envisaged. COMPANY PROFILE Started in 1973, Vijai Electricals is a manufacturer of electricity distribution transformers. In 2005, it entered into the business of execution of rural electrification projects. It has a transformer production site in Haridwar and a conductor manufacturing facility in Roorkee. VIJAY PHARMA: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Vijay Pharma's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the surveillance 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 action is: -- INR60 mil. Fund-based limit migrated to non-cooperating category with IND B-(ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 14, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Vijay Pharma has been in pharmaceutical trade and distribution since 1971. The company is a distributor for around two dozen pharmaceutical manufacturers and supplies around 10,000 products to pharmaceutical retailers in the western Mumbai area. VIJAYALAKSHMI AGRO: CARE Reaffirms B+ Rating on INR15CR LT Loan --------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Vijayalakshmi Agro Food Industries (VAFI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 15 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of VAFI is tempered by the modest scale of operations, thin and declining PBILDT margins, financial risk profile marked by moderate capital structure and weak debt coverage indicators, seasonal nature of availability of paddy resulting in working capital intensive nature of operations, intense competition from several other players, raw material price volatility and constitution of the entity as a partnership firm with inherent risk of withdrawal of capital. However, the rating is underpinned by the experience of partners for one decade in rice milling industry and reasonable track record of the firm, growth in total operating income during review period, locational advantage with presence in cluster and easy availability of paddy and healthy demand outlook of rice. Going forward, ability of the firm to increase its scale of operations, improve its capital structure and debt coverage indicators and manage its working capital requirements efficiently are key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Modest scale of operations: VAFI was established in the year 2008. Thus, the firm has reasonable track record of operations. The total operating income stood moderate at INR52.55 crore in FY16 (refers to period April 1 to March 31) with low net worth base of INR4.47 crore as on March 31, 2016 (A) when compared to other peers in the industry. Thin and declining PBILDT margins: The PBILDT margin of the firm has been declining year-on-year from 3.42% in FY14 to 2.54% in FY16 due to intensely competitive rice milling business along with increase in power and fuel expenses and material costs. The firm has thin PAT margin during review period due to high interest cost and low operational profits. The PAT margin of the firm is fluctuating within the range of 0.32%-0.34% during review period due to fluctuating interest expense and PBILDT in absolute terms. Financial risk profile marked by moderate capital structure and weak debt coverage indicators: The firm has moderate capital structure during review period. The debt equity ratio of the firm has been improving y-o-y from 0.63x as on March 31, 2014 to 0.24x as on March 31, 2016 due to repayment of term loan coupled with increase in tangible net worth on account of accretion of reserves. However, the overall gearing of the firm stood leveraged during review period due to increasing working capital utilisation with increase in scale of operations coupled with low networth base. However, the overall gearing of the firm has been improving y-o-y from 2.43x as on March 31, 2014 to 2.04x as on March 31, 2016. The debt profile of the firm is dominated by short term borrowings to meet working capital requirement of the firm. The firm has weak debt coverage indicators during review period. Total debt/GCA of the firm has been deteriorating from 15.58x in FY14 to 20.07x in FY16 due to increase in total debt coupled with decrease in gross cash accruals. The PBILDT interest coverage of the firm also marginally declined from 1.72x in FY14 to 1.66x in FY16 due to high interest costs and low operational profit. Constitution of the entity as a partnership firm with inherent risk of withdrawal of capital: VAFI, being a partnership firm, is exposed to inherent risk of the partner's capital being withdrawn at time of personal contingency and firm being dissolved upon the death/retirement/insolvency of the partners. Moreover, partnership firm business has restricted avenues to raise capital which could prove a hindrance to its growth. Seasonal nature of availability of paddy resulting in working capital intensive nature of operations: Paddy in India is harvested mainly at the end of two major agricultural seasons Kharif (June to September) and Rabi (November to April). The millers have to stock enough paddy by the end of the each season as the price and quality of paddy is better during the harvesting season. During this time, the working capital requirements of the rice millers are generally on the higher side. Majority funds of the firm are blocked in inventory and with customers. Due to the above reasons, the operating cycle of the firm deteriorated from 67 days in FY15 to 73 day in FY16 due to increase in average inventory period of the firm increased to 52 days in FY15 to 59 days in FY16. Moreover, the paddy is procured from the farmers generally against cash payments or with a minimal credit period of 10-15 days while the millers have to extend credit to the wholesalers and distributors around 20-30 days resulting in high working capital utilization reflecting working capital intensity of business. The average utilization of fund based working capital limits of the firm was utilized (90%) during the last 12 months period ended January 31, 2017. Key Rating Strengths Experience of partners for one decade in rice milling industry and reasonable track record of the firm: Vijayalakshmi Agro Food Industries (VAFI) was established in 2008 as a partnership firm and promoted by Mr. CH Nageshwara Rao, Mr. CH Radha Krishna, Mr. Jasti Ram Prasad and Mrs. K Geetha Vani. Mr. CH Nageshwara Rao and Mr. CH Radha Krishna are having around 10 years of experience in rice milling business. Through their experience in the rice milling business, they have established healthy relationship with key suppliers, customers, local farmers, dealers and also with the brokers facilitating the rice business within the state. Growth in total operating income during review period: The total operating income of the firm grew by Compounded Annual Growth Rate (CAGR) of 13.97% from INR40.47 crore in FY14 to INR52.55 crore in FY16 due to increase in orders from existing customers and addition of new customers driven by positive demand outlook for rice coupled with increase in production activities due to adequate availability of paddy. The firm is also procuring paddy from government and delivering milled rice for which processing charges are received to an extent of 1% of total operating income. During 10MFY17 (Provisional), the firm achieved total operating income of INR50 crores. Locational advantage with presence in cluster and easy availability of paddy: The rice milling unit of VAFI is located at Koppal district which is the top district for producing rice in Karnataka. The manufacturing unit is located near the rice producing region, which ensures easy raw material access and smooth supply of raw materials at competitive prices and lower logistic expenditure. Healthy demand outlook of rice: Rice is consumed in large quantity in India which provides favorable opportunity for the rice millers and thus the demand is expected to remain healthy over medium to long term. India is the second largest producer of rice in the world after China and the largest producer and exporter of basmati rice in the world. The rice industry in India is broadly divided into two segments - basmati (drier and long grained) and non-basmati (sticky and short grained). Demand of Indian basmati rice has traditionally been export oriented where the South India caters about one-fourth share of India's exports. However, with a growing consumer class and increasing disposable incomes, demand for premium rice products is on the rise in the domestic market. Demand for non-basmati segment is primarily domestic market driven in India. Initiatives taken by government to increase paddy acreage and better monsoon conditions will be the key factors which will boost the supply of rice to the rice processing units. Rice being the staple food for almost 65% of the population in India has a stable domestic demand outlook. On the export front, global demand and supply of rice, government regulations on export and buffer stock to be maintained by government will determine the outlook for rice exports. Vijayalakshmi Agro Food Industries (VAFI) was established in 2008 as a partnership firm and promoted by Mr. CH Nageshwara Rao, Mr. CH Radha Krishna, Mr. Jasti Ram Prasad and Mrs. K Geetha Vani. VAFI is engaged in milling and processing of rice. The rice milling unit of the firm is located at Navanagar, Karatagi, Gangavathi Taluk, Koppal District of Karnataka. Apart from rice processing, the firm is also engaged in selling by-products such as broken rice, husk and bran. The main raw material, paddy, is directly procured from local farmers located in and around Koppal District and the firm sells rice and other by-products mainly to customers like TPL Enterprises (Hosur), Vijayalakshmi Agency (Karatagi), Platinum Traders (Bengaluru) and in the open markets of Karnataka. VIZEBHAGRI SCIENCES: CARE Assigns B+ Rating to INR11.87cr Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of VizebhAgri Sciences Private Limited (VASPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 11.87 CARE B+; Stable Assigned Detailed Rationale and key rating drivers The rating assigned to the bank facilities of VizebhAgri Sciences Private Limited (VASPL) is primarily constrained on account of its nascent stage of operations, susceptibility of its margins to intense competition, raw material related risk and seasonal nature of milk processing industry. The rating, however, derives comfort from experienced promoters, established marketing arrangements coupled with location advantage and wide product profile. The ability of VASPL to achieve envisaged level of sales and profitability along with efficient working capital management would remain the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Nascent stage of operations: VASPL was engaged into trading activities of dairy products till FY17 and it reported TOI of INR3.97 crore during FY17. The production from milk processing unit commenced from January 2017. During 5MFY18 (Prov.), VASPL has achieved turnover of around INR13.24 crore. Susceptibility of margins to intense competition and raw material related risk: VASPL faces stiff competition from the established players in the organized market in milk and ghee segments. On the liquid milk front, competition gets intense with presence of unorganized players and independent milk vendors leading to pricing pressures. The same is also reflected in low profitability margins of players in this industry. Also, the companies are vulnerable to risks of failure in milk production due to external factors such as cattle diseases leading to volatility in prices of raw materials. Seasonal nature of milk processing industry: The dairy industry is characterized by the short supply of milk during peak of summers. The company procures the milk during the winter season when the milk is available in abundance and at low price which leads to build up of inventory/finished goods. Correspondingly, there is high requirement of funds during peak season i.e. winter months from September-May. Key Rating Strengths Experienced promoters and established marketing arrangement: Mr. Amrish Patel and Mr. Jinesh Patel are the key promoters of the VASPL. Mr. Amrish Patel formed an entity during 2008 with 80 unit rotary milking parlour. In VASPL, Mr. Amrish Patel takes care of overall operations while Mr. Jinesh patel look after relationship management and manpower management. Both of them have also promoted Vizebh Food Products Private Limited, Vizebh Compositech Private Limited (rated CARE D) and Vizebh Resorts Private Limited which are into diversified business operations. Milk is the primary raw material for VASPL which is procured from its own milk chilling centres established in nearby regional areas of Gujarat. VASPL has supply arrangement with Kolhapur Milk Reunion. It also sells other products such as ghee and flavoured milk to Punjab, Haryana, Jammu & Kashmir, Himachal Pradesh etc. Location advantage: VASPL has its plant located at Vadodara (Gujarat), which is having good connectivity with rest of the country with welldeveloped communication network and required manpower is also available at reasonable rate. Further, milk procurement and other required raw materials are satisfied locally from the villages located nearby in Gujarat. Wide product profile: Full-fledged operations of VASPL commenced from January 2017. It has a wide product range which is mainly divided into dairy products and non-dairy products. Currently, the company is largely into processing of milk and curd. However, it has processing capacity for other dairy products such as cow ghee, butter, flavoured milk and other sweets. Non-dairy products mainly include snacks and juices for which VASPL has installed plant recently. Vadodara-based (Gujarat), VASPL was incorporated during July, 2010 by two promoters namely Mr. Amrish Patel and Mr. Jinesh Patel. The company is in the business of manufacturing of dairy products such as milk, curd, cow ghee, butter, flavoured milk, lassi etc. and operates with an installed capacity of 100,000 litres per day for milk processing. The company sells its products under the brand name "Vizee" in Gujarat, Punjab, Haryana, Jammu &kashmir, Himachal Pradesh etc. VVC MOTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated VVC Motors Pvt. Ltd.'s (VMPL) 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: -- INR200 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 12, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE VMPL is an authorised dealer of Mahindra & Mahindra Limited ( IND AAA/Stable) in Hyderabad, Telangana. The company has four showrooms, along with service centres and 18 branches. VMPL is promoted by V Rajendra Prasad Vankayalapati, his mother V Draoupathy Venkalayapati and his wife V Sahrudayini. WONDER CONSTRUCTION: ICRA Moves B- Rating to Not Cooperating ------------------------------------------------------------ ICRA has moved the ratings for the INR10.00 crore bank facilities of Wonder Construction 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 10.00 [ICRA]B-(Stable) ISSUER NOT Based Limits COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Short Term: Non (1.00) [ICRA]A4 ISSUER NOT Fund Based Limits COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Rationale The rating action is based on best available information. As part of its process and in accordance with its rating agreement with Wonder Construction, ICRA has been trying to seek information from the company to undertake a surveillance of the rating; but despite multiple requests, the company's management has remained non-cooperative. In the absence of the requisite information, ICRA's Rating Committee has taken a rating view based on the best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, the company's rating is now denoted as: "[ICRA]B-(Stable)/[ICRA]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 information or no updated information on the company's performance since the time it was last rated. Key rating drivers Credit strengths * Long-standing experience of the partners in construction sector: Wonder Construction is promoted managed by the Anwar Family who has an experience of over three decades in construction industry. The firm is a class A+ registered contractor, whose clientele includes government entities like the primarily Public Works Department (PWD) and Municipal Corporations/Councils of various cities/towns. Credit weaknesses * Limited exposure to fluctuations in raw material prices owing to presence of price escalation clause in contracts: The main raw material required by WC consist of ready mix concrete (RMC), steel, cement, sand etc. which are procured from local suppliers against ~30 days credit. All the contracts are inclusive of a price variation clause and cover for increase in costs of key raw materials up to 5% of the contractor's estimated cost which protects the firm's profitability to some extent. * Exposure to high competition in civil construction industry - The civil construction segment is characterized by high competitive intensity. The average complexity of work involved as well as low entry barriers in terms of qualifications required for the tenders floated results in presence of large number of contractors in this segment leading to highly competitive bids thereby putting pressure on margins. The firm thus remains exposed to stiff competition from other civil contractors. * Risk of capital withdrawals associated with a partnership firm Incorporated in the year 2001, Wonder Construction (WC or the firm) is an Aurabgabad based civil contractor engaged in the business of construction of buildings and roads. WC is a class A+ registered contractor with Public Works Departments (PWD) of Maharashtra. WC executes construction projects for government entities, primarily Public Works Department (PWD) and Municipal Corporations/Councils of various cities/towns, particularly in Marathwada region. ========= J A P A N ========= TOSHIBA CORP: Under Japan's Securities Watchdog Probe ----------------------------------------------------- Nikkei Asian Review reports that Japanese authorities have launched a probe into Toshiba Corp.'s accounting and reporting practices for the fiscal year ended in March, in order to determine whether the troubled company appropriately handled the massive losses posted by its U.S. nuclear power unit Westinghouse Electric. According to Nikkei, the Securities and Exchange Surveillance Commission is looking into how Toshiba produced its fiscal 2016 securities report, which was released in August. The document was originally due at the end of June, but Toshiba and its auditor clashed on when the Tokyo-based company became aware of the losses at Westinghouse. The auditor eventually gave a qualified opinion, endorsing the report "with the exception of a specified concern." Westinghouse was removed from Toshiba's consolidated books after it filed for bankruptcy protection in the U.S., Nikkei states. The securities watchdog will review the "specified concern" and exchanges between Toshiba and its auditor, the report says. It aims to determine what led to the auditor's unconventional decision to offer a qualified approval, as well as why reports from previous years were repeatedly postponed. The investigation has not been triggered by any new discoveries or allegations, Nikkei adds. About Toshiba Corp Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 6, 2017, S&P Global Ratings said that it has affirmed its 'CCC-' long-term corporate credit and 'C' short-term corporate credit and commercial paper program ratings on Japan-based capital goods and diversified electronics company Toshiba Corp. S&P also removed the ratings from CreditWatch. The outlook is negative. S&P said, "At the same time, we raised the senior unsecured rating one notch to 'CCC-' from 'CC' following completion of our review of the rating. The review follows our publication of our revised issue rating criteria, "Reflecting Subordination Risk In Corporate Issue Ratings" on Sept. 21, 2017, after which we placed the rating "under criteria observation" (UCO). With our criteria review complete, we are removing the UCO designation from the rating. We also removed the senior unsecured rating from CreditWatch with negative implications following our affirmation of the long-term corporate credit rating and resolution of the CreditWatch." ==================== N E W Z E A L A N D ==================== BOOST GROUP: RFG Takes Control of Gloria Jean NZ Master Franchise ----------------------------------------------------------------- BusinessDesk reports that Retail Food Group, the ASX-listed franchisor of food outlets including Donut King, Brumby's Bakery and Michel's Patisserie, says it has taken control of the New Zealand master franchise for the Gloria Jean's chain after the failure of the local company that owned the rights. There are some 12 Gloria Jean's cafes in New Zealand, which had operated under the umbrella of Auckland-based Boost Group, the report states. In September, Boost was put into receivership by GJ New Zealand Holdings, which had provided vendor finance to Boost when it sold it the NZ master franchise. Boost was subsequently put into liquidation by shareholder Eric Chase, BusinessDesk discloses citing Companies Office records. Retail Food Group (RFG) "owns the global rights to Gloria Jean's so we still own and operate the brand even if Boost is in liquidation," a company spokeswoman said, BusinessDesk relays. "All our partnerships are working as usual" and RFG is currently seeking a new master franchise owner. The Gold Coast-based company has hired someone to run day-to-day operations in New Zealand, she said. The first liquidators' report for Boost includes an explanation from Chase, who is also the company's director, for the failure. According to the report, Mr. Chase said Boost purchased the NZ Master Franchise rights for $1.8 million "based on a leveraged buyout" with a loan from Bank of New Zealand and vendor financing from GJ New Zealand, a company ultimately owned by former ACT Party leader John Banks and Paul Ewing, an Australian who had been operating a franchise in Brisbane before establishing the New Zealand master franchise in 2003. BusinessDesk relates that Mr. Chase said the annual net profit of the business "was purported to be approximately $1.8 million". However, "from the date of settlement, the profitability of the system was significantly less than this and to stay afloat Boost Group had to be supported from funds input into the business by Eric Chase from other revenue sources," BusinessDesk says citing liquidators' report from PKF Corporate Recovery & Insolvency. Boost found "numerous discrepancies" in the way Jireh International, another Ewing company which had previously sold the master franchise to GJ New Zealand, had been trading and despite due diligence by BNZ and Boost, the "misrepresentation of the true position" wasn't discovered, Mr. Chase said, according to the liquidators' report. Boost "alleged that the true position was deliberately hidden by Paul Ewing," it said. Unbeknownst to Boost, Jirah "had leased the equipment and fit outs of certain franchise stores in their name" meaning those stores were heavily encumbered. It turned out that some weren't part of the franchise system and others "were in the midst of legal disputes with Jirah/Paul Ewing", the report, as cited by BusinessDesk, said. Some franchise stores weren't paying their full franchise fees. "Boost would have never purchased the franchise system had it known about the misrepresentations which were made to us during the due diligence stage as clearly the value of the franchise system was nowhere near the $1.8 million we paid for the system," it says. Ewing put Boost into receivership when Boost refused to repay $660,000 of vendor financing that was secured by a general security agreement, BusinessDesk notes. ================ S R I L A N K A ================ SRI LANKA: External Pressures Constrain Credit Profile ------------------------------------------------------ Moody's Investors Service says that Sri Lanka's (B1 negative) significant borrowing requirements and heavy reliance on external and foreign-currency funding expose the sovereign to material liquidity and external financing risk, which weighs on the sovereign's credit profile. Despite a recent increase in foreign exchange reserves, reserve coverage of external obligations remains low. Unless reserves rise still further, reserve coverage will weaken and external vulnerability will increase from 2019 when large international debt repayments are due. How the authorities prepare for and manage these risks will be critical to stabilizing the external financing position. Reforms that continue to advance fiscal consolidation and exchange rate flexibility, along with implementation of an effective external liability management strategy, would mitigate external risks and help support Sri Lanka's credit profile. Moody's conclusions are contained in its just-released report on the Government of Sri Lanka, "External pressures constrain credit profile". Moody's assesses Sri Lanka's external vulnerability as "Moderate", reflecting its view that sudden shifts in external conditions could weaken the sovereign's credit profile. This external vulnerability stems from the structure of the country's government debt, with large shares of external financing and foreign currency debt combining to heighten the government's susceptibility to changes in financing conditions. As of 2016, total external debt (local and foreign currency external debt of combined public and private sectors) was about $47 billion (about 57% of GDP), of which approximately 68% was public sector debt. Meanwhile, the government's foreign currency- denominated debt was about 43% of total general government debt in 2016 and about 34% of GDP. Moody's notes that Sri Lanka's foreign currency reserves fell to a low of $4.1 billion in April 2017 from a peak of just over $8.1 billion in August 2014, but by August 2017, reserves had been rebuilt to $6.7 billion. Despite this improvement, reserves adequacy remains relatively weak and Sri Lanka has several large external debt repayments due between 2019 and 2022. The bunching of these future external liabilities, which will average $3.6 billion per year, raises rollover and external vulnerability risks. Meanwhile, the debt-financing of Sri Lanka's persistent current account deficits adds to future external financing needs. Sri Lanka's current account deficits, at 2.4% of GDP in 2016, are driven by large structural trade deficits and add to external financing requirements. Annual net foreign direct investment (FDI), which was 1.2% of GDP in 2016, does not fully fund the deficit. Hence the current account deficit will continue to be partly financed through debt inflows, leading to further accumulation of debt liabilities. At the same time, reforms could help to reduce Sri Lanka's external vulnerability, but their impact is not fully clear yet. Moving forward, sustained fiscal consolidation and a more flexible exchange rate will have a credit positive impact by reducing external borrowing requirements and preserving foreign exchange reserves. However, the design and implementation of an effective and transparent external liability management strategy remains incomplete. How these multipronged reform areas combine and shape external vulnerability will help determine Sri Lanka's credit profile. ********* 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. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***