/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180221.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, February 21, 2018, Vol. 21, No. 037 Headlines A U S T R A L I A BUSBY CONTRACTING: Goes Into Voluntary Liquidation CLEARPACK AUSTRALIA: Second Creditors' Meeting Set for March 1 FRANCHISE RETAIL: Second Creditors' Meeting Set for Feb. 27 IRONCAT PTY: Second Creditors' Meeting Slated for Feb. 28 LADY MINDAMURRA: Second Creditors' Meeting Set for Feb. 28 T.I.S. ENGINEERING: Second Creditors' Meeting Set for Feb. 23 UNIQUE ESTATES: McGrath Nicol Appointed as Joint Managers I N D I A AKR IMPEX: ICRA Removes B Rating From Not Cooperating Category AL-AMAL DIAGNOSTICS: CRISIL Assigns B- Rating to INR6.4MM Loan ANDREW YULE: ICRA Lowers Rating on INR69.57cr Cash Loan to D ANOOP FORGINGS: ICRA Reaffirms B- Rating on INR4cr Cash Loan ARUN LASER: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan BINANI CEMENT: Bain-Backed Group Submits Highest Bid ERA INFRA: NCLT to Proceed With Insolvency Proceeding FAITH LUMBER: ICRA Reaffirms B+ Rating on INR19cr Loan GOEL ROAD: CRISIL Raises Rating on INR7.5MM Cash Loan to B+ GOYAL AGRO: ICRA Raises Rating on INR19cr Loan to B+ HEXAGON-MIDCO INDIA: CRISIL Cuts Rating on INR4MM Loan to B+ JAISHRIRAM SUGAR: CRISIL Lowers Rating on INR29.15MM Loan to D JAWA PLASTECH: CRISIL Assigns B+ Rating to INR4.9MM LT Loan JSRM FOODS: CRISIL Removes B+ Rating From Not Cooperating Cat. KAMLESHKUMAR BALUBHAI: CRISIL Cuts Rating on INR6.25MM Loan to D KARANJA TERMINAL: CRISIL Lowers Rating on INR480MM Term Loan to D KTC AUTOMOTIVE: CRISIL Reaffirms B Rating on INR7.32MM Cash Loan NACHIMUTHU INDUSTRIAL: CRISIL Assigns D Rating to INR23MM Loan NATIONAL EXPORT: CRISIL Lowers Rating on INR12MM Cash Loan to B NORTH EASTERN: ICRA Removes B+ Rating From Not Cooperating Cat. P.K.M PROJECTS: ICRA Reaffirms D Rating on INR40cr LT Loan PAAPPAI EXPORTS: CRISIL Assigns B+ Rating to INR1.8MM LT Loan PADMINI BAKERS: CRISIL Assigns B+ Rating to INR5.0MM Cash Loan PLASCARE INDUSTRIES: CRISIL Cuts Rating on INR29.38MM Loan to D POONAM GRAH: CRISIL Lowers Rating on INR10MM Loan to B+ POWERMAX RUBBER: CRISIL Raises Rating on INR6MM Term Loan to B PROTAC FOODS: ICRA Cuts Rating on INR18cr Term Loan to D RUBICON INSPECTION: CRISIL Cuts Rating on INR3.0MM Cash Loan to D SA PLYWOOD: CRISIL Raises Rating on INR13.5MM Cash Loan to B SAKALDEEP COLD: CRISIL Assigns D Rating to INR3.75MM Term Loan SHALIMAR OVERSEAS: CRISIL Assigns B Rating to INR8.54MM Loan SHRI RADHE: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan SHRI SIDDHBALI: ICRA Reaffirms B Rating on INR5.81cr Loan SIKKIM ORGANICS: CRISIL Removes B+ Rating from 'Not Cooperating' SNJ LABS: ICRA Assigns B+ Rating to INR9.68cr Term Loan SWASTIK POWER: ICRA Assigns D Rating to INR38cr Loan TDI INFRATECH: CRISIL Reaffirms B- Rating on INR164.5MM Loan VIMAL MICRONS: ICRA Moves B+ Rating to Not Cooperating Category VIVEKANANDA SEEDS: ICRA Reaffirms B Rating on INR8.40cr Loan WINSOME DIAMONDS: NCLT Orders Commencement of Insolvency Process J A P A N JFE HOLDINGS: Moody's Rates JPY300BB Subordinated Loan Ba1 TK HOLDINGS: Bankruptcy Exit Plan Approved N E W Z E A L A N D NEW ZEALAND HONEY: Owes NZ$1.4MM to Creditors; Sale Looms S I N G A P O R E EMAS OFFSHORE: To Appeal Against Oslo Stock Exchange Delisting - - - - - ================= A U S T R A L I A ================= BUSBY CONTRACTING: Goes Into Voluntary Liquidation -------------------------------------------------- The Morning Bulletin reports that Busby Contracting Pty Ltd has gone into voluntary liquidation owing more than AUD2 million to creditors, employees and the tax office. The decision to wind the company up came at a general meeting held in Brisbane on Feb. 5, the report says. According to the report, documents lodged with the Australian Securities and Investments Commission on February 5 outlined the minutes of the general meeting where company directors Donald Stephen and Patrick Busby confirmed the company was insolvent and unable to pay debts. The decision was made to voluntarily wind up the company, which would place it in immediate liquidation. Joanne Dunn and John Park from Brisbane company FTI Consulting were appointed liquidators, the report discloses. Ms. Dunn told The Morning Bulletin documents lodged with ASIC on Feb. 12 detailed the company's expenses as outlined by the directors. They show AUD420,000 owed to employees, about AUD600,000 owed to trade creditors and AUD1.4 million owed to the Australian Tax Office, the report says. According to The Morning Bulletin, Ms. Dunn said FTI Consulting had much investigation to do into Busby's finances and it was early in the liquidation process. She said the liquidators was to collect outstanding money and, in paying that to debtors, employees would take priority. She said anyone needing further information could call FTI Consulting's Brisbane office, the report notes. Busby Contracting Pty Ltd had been involved in mines including Eagle Downs, Baralaba, Isacc Plains, Caval Ridge, Rolleston, Peak Downs, Broadmeadows, North Moranbah, Dawson, Curragh, Kestrel, Hail Creek, Coppabella, Jellinbah, Blackwater and Moorvale, and Dyno Nobel Ammonia Nitrate Plant. The company had also completed large-scale culvert, drainage and protection works for Roadtek and Queensland Rail. CLEARPACK AUSTRALIA: Second Creditors' Meeting Set for March 1 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Clearpack Australia Pty Ltd has been set for March 1, 2018, at 11:00 a.m. at the offices of Dye & Co. Pty Ltd, 165 Camberwell Road, in Hawthorn East. 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 Feb. 28, 2018, at 5:00 p.m. Nicholas Giasoumi and Shane Leslie Deane of Dye & Co. were appointed as administrators of Clearpack Australia on Feb, 7, 2018. FRANCHISE RETAIL: Second Creditors' Meeting Set for Feb. 27 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Franchise Retail Brands Limited has been set for Feb. 27, 2018, at 2:00 p.m. at the offices of GM Insolvency, Level 27, 10 Eagle Street, in Brisbane, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Feb. 26, 2018, at 4:00 p.m. Ginette Muller of GM Insolvency was appointed as administrator of Franchise Retail on Jan. 24, 2018. IRONCAT PTY: Second Creditors' Meeting Slated for Feb. 28 --------------------------------------------------------- A second meeting of creditors in the proceedings of Ironcat Pty Ltd has been set for Feb. 28, 2018, at 3:00 p.m. at the offices of Cor Cordis, Mezzanine Level, BGC Centre, 28 The Esplanade, in Perth, WA. 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 Feb. 27, 2018, at 4:00 p.m. Dino Travaglini, Jeremy Joseph Nipps and Cliff Rocke of Cor Cordis were appointed as administrators of Ironcat Pty on Jan. 23, 2018. LADY MINDAMURRA: Second Creditors' Meeting Set for Feb. 28 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Lady Mindamurra Pty Ltd has been set for Feb. 28, 2018, at 4:00 p.m. at the offices of Cor Cordis, Mezzanine Level, BGC Centre, 28 The Esplanade, in Perth, WA. 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 Feb. 27, 2018, at 4:00 p.m. Dino Travaglini, Jeremy Joseph Nipps and Cliff Rocke of Cor Cordis were appointed as administrators of Lady Mindamurra on Jan. 23, 2018. T.I.S. ENGINEERING: Second Creditors' Meeting Set for Feb. 23 ------------------------------------------------------------- A second meeting of creditors in the proceedings of T.I.S. Engineering (WA) Pty Ltd, trading as TIS Recruitment, has been set for Feb. 23, 2018, at 12:00 p.m. at Subiaco Business Centre, Suite 5, 531 Hay Street, in Subiaco, WA. 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 Feb. 22, 2018, at 5:00 p.m. Melanie Samantha Grohovaz of EMJ Consulting Pty Ltd was appointed as administrator of T.I.S. Engineering on Jan. 5, 2018. UNIQUE ESTATES: McGrath Nicol Appointed as Joint Managers --------------------------------------------------------- Property Observer reports that McGrath Nicol has been appointed joint managers by the NSW Department of Fair Trading over the national boutique estate agency, Unique Estates. Staff got an email from its founder informing them of the agency collapse, the report says. "It is with great sadness that I inform you that Unique Estates is going into liquidation today [Feb. 14] and you are to stop work straight away," founder, Nicolette van Wijngaarden emailed staff, Property Observer relays. "Wages can not be paid tomorrow," she told the staff, telling them to contact McGrath Nicol senior accountant Jordan Trovato, who has yet to confirm the official status of the estate agency. "I am very sorry it has come to this," she wrote. Property Observer says the website ceased operating on Feb. 14, with listings from Hamilton Island to Cressy in Tasmania disappearing. Staff, its 32 vendors, recent sellers and their solicitors were dismayed at the move, although had fears of its deteriorating situation for some time, the report notes. The agency was showing signs of erratic decision making along with heightened staff departures, the report adds. Unique Estates was founded in 2009 as a specialized company for dealing with VIP clients and luxury properties. It operated seven offices including Albert Park, Double Bay, the Gold Coast, Melbourne and Hong Kong. ========= I N D I A ========= AKR IMPEX: ICRA Removes B Rating From Not Cooperating Category -------------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating of [ICRA]B to the INR5.45-crore (revised from INR6.0 crore) long-term fund- based facility of AKR Impex Private Limited. ICRA has also reaffirmed the short-term rating of [ICRA]A4 to the sublimit of INR4.00-crore Letter of Credit, sublimit of INR5.00-crore packing credit and sublimit of INR5.00-crore bill-discounting facility. The outlook on the long-term is 'Stable'. ICRA has also removed the rating from Issuer Not-Cooperating Category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.45 [ICRA]B(Stable); Reaffirmed and removed from 'issuer not cooperating category Letter of Credit (sub limit) (4.00) [ICRA]A4; Reaffirmed and removed from 'issuer not- cooperating category Packing Credit (sub limit) (5.00) [ICRA]A4; Reaffirmed and removed from 'issuer not- cooperating category Bill discounting (5.00) [ICRA]A4; Reaffirmed and (sub limit) removed from 'issuer not- cooperating category Rationale The ratings continue to factor in the company's modest scale of operations and low value addition in the business, leading to thin operating profit margins. The ratings also take into account the modest financial profile characterised by stretched liquidity and coverage indicators. The ratings are also constrained by intense competition in the industry with many organised and unorganised players in processing and trading segments. The ratings, however, favourably consider the significant experience of promoters and the operational track record of the company in pulse processing and trading business. Outlook: Stable The Stable outlook reflects ICRA's expectation that AKR Impex Pvt. Ltd. will continue to benefit from the long experience of the promoters in the pulse processing and trading business. The outlook may be revised to 'Positive' if substantial growth in revenue and profitability, and better working-capital management strengthen the financial risk profile. The outlook may be revised to 'Negative' if cash accrual is lower than expected, or if any major capital expenditure, or stretch in the working capital cycle, weakens liquidity. Key rating drivers Credit strengths Established track record of the company: The company has been in the business of processing of pulses for over a decade and has an established customer base in domestic and exports segments. With growing consumption of pulses in India, demand would increase the company's revenue in the pulses trading and processing segment. Credit challenges Moderate scale of operation and low value addition, leading to low margins: The company is involved in the business of processing of various types of pulses and sells the same to the wholesalers. The margins are mainly determined by the movement in raw-material prices which constitutes a major portion of the cost. Since the company mainly deals with easy-to-mill pulses, the value addition is low, leading to thin margins. Leveraged capital structure and stretched coverage indicators: The company is highly leveraged with short-term debt of INR6.0 crore and long-term debt of INR1.1 crore in FY2017. Though the long-term debt has been reducing over the past financials, there has been an increase in short-term debt. The coverage indicators remained weak with interest cover at 1.2 times. Intense competition in the industry with low entry barriers: The industry is highly fragmented with many organised and unorganised players. The cost of setting up the processing unit is low and there is sufficient demand to give good returns. Thus the company is exposed to high competition resulting in thin operating profit margins. AKR Impex Private Limited was incorporated in 2006 by Mr S.Kathiravan. The company is involved in the business of processing and trading of various types of pulses and has two processing units set up in Tondiarpet, Chennai. The company processes black gram, green gram, toor dhal, yellow lentils etc. The process involves dehusking the pulses, splitting and polishing. The company purchases raw materials from domestic as well as international markets and processes and sells it to the customers. AL-AMAL DIAGNOSTICS: CRISIL Assigns B- Rating to INR6.4MM Loan -------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the long-term bank loan facilities of Al-Amal Diagnostics (AAD). The rating reflects a modest scale of operations in the intensely competitive diagnostic services industry, geographical concentration in revenue, and a subdued financial risk profile. These weaknesses are partially offset by the extensive industry experience of the proprietor. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Drop Line Overdraft Facility 6.4 CRISIL B-/Stable (Assigned) Term Loan 2.5 CRISIL B-/Stable (Assigned) Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in a highly competitive industry: There are a large number of established players as well as smaller local players in the diagnostic services market. Intense competition and a limited presence has led to modest revenue of INR1.85 crore for fiscal 2017, and will continue to constrain the business risk profile. * Geographical concentration in revenue: AAD's operations have significant geographic concentration as both its Centre's are located Mumbai. The geographical concentration restricts the clientele base and renders operations vulnerable to the dynamics of a single market. * Subdued financial risk profile: As on March 31, 2017, the networth was modest at INR0.20 crore, while the gearing and total outside liabilities to tangible networth ratio were very high at 46.24 times and 46.80 times, respectively. Debt protection metrics were subdued: interest coverage and net cash accrual to total debt ratios were 0.9 time and a negative 0.02 time, respectively, for fiscal 2017. The financial risk profile is expected to remain subdued over the medium term. Strength * Extensive industry experience of the proprietor: The proprietor, Dr. Yousif Qabageh, has an experience of around three decades in the diagnostic industry. This has enabled the firm to establish a strong relationship with corporate customers. Outlook: Stable CRISIL believes AAD will continue to benefit from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' if significant increase in revenue along with sustained profitability results in improvement in the financial risk profile. The outlook may be revised to 'Negative' if the financial risk profile deteriorates, most likely because of low cash accrual, weakening of working capital management, or large, debt-funded capital expenditure. AAD was setup in 1984 by Dr Yousif Qabageh. It operates two diagnostic centres in Mumbai. ANDREW YULE: ICRA Lowers Rating on INR69.57cr Cash Loan to D ------------------------------------------------------------ ICRA Ratings has downgraded the long-term rating assigned to the INR69.57-crore cash-credit facilities and INR17.67-crore unallocated limits of Andrew Yule & Company Limited from [ICRA]BB+ with stable outlook to [ICRA]D. ICRA has also downgraded the short-term rating to the INR40.76-crore non-fund- based facilities from [ICRA]A4+ to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund Based 69.57 [ICRA]D; downgraded from Facilities-Cash Credit [ICRA]BB+(Stable) Unallocated Limits 17.67 [ICRA]D; downgraded from [ICRA]BB+(Stable) Short-Term Non Fund 40.76 [ICRA]D; downgraded from Based Facilities [ICRA]A4+ Rationale The revision in ratings takes into account AYCL's recent devolvement of letter of credit (LC) which has remained unpaid for more than 30 days, despite AYCL having a substantial cash and bank balance of INR65.59 crore as on September 30, 2017. The LC pertains to the electrical division, which has suffered losses, although on an overall basis, the company was profitable driven by the profits from the tea business and significant interest income on its cash and bank balances. ICRA, however, continues to note AYCL's status as a Government of India (GoI) company, with the GoI holding a 89.25% stake and the company's established position in the domestic bulk-tea industry. Key rating drivers Credit strengths Status as a Government of India company: AYCL is a Government of India (GoI) company, with the GoI holding a 89.25% stake at present. Established position of the company in the domestic bulk tea industry: AYCL produces superior quality of tea (both CTC and orthodox varieties), which commands a significant premium over auction averages, on account of its established position in the domestic bulk tea industry. Favourable long-term outlook on the domestic bulk tea industry: Increasing domestic demand for black tea, combined with a limited increase in domestic production, is likely to support a positive price and margin trajectory for the Indian bulk-tea industry, although export volumes would play a key role. Credit challenges Recent devolvements in LC for over 30 days: There have been recent devolvements in LC, which has remained unpaid for more than 30 days, despite AYCL having a substantial cash and bank balance of INR65.59 crore as on September 30, 2017. The said LC pertains to the electrical division, which has suffered losses during the first half of the current year, although, on an overall basis, the company was profitable driven by the profits from the tea business and substantial interest income on its cash and bank balances. Loss-making operations/subdued performance of the engineering and electrical divisions: The electrical and engineering divisions accounted for around 40% and 8% of AYCL's total revenues in FY2017. The sluggish performance of the electrical and engineering division led to muted operating profitability in the recent past. During FY2017 the engineering division incurred losses of INR3.83 crore, while the electrical division reported nominal profits of INR1.79 crore during the year. In the first half of the current year, both the electrical and engineering divisions reported losses at the PBIT level of INR10.72 crore and INR4.26 crore respectively. Subdued return indicators: Return indicators remained under pressure due to low operating profits in the recent past. Given the weak performance of the electrical and engineering divisions, return indicators are likely to remain subdued in the near term. Risks associated with tea being an agricultural commodity; cost pressure faced by the bulk tea industry: Tea production depends on agro-climatic conditions, which subject it to agro-climatic risks. Additionally, the inherent cyclicality of the fixed-cost- intensive tea industry leads to variability in profitability and cash flows of bulk tea producers, such as ATL. AYCL, incorporated in 1919, is the flagship company of the Andrew Yule Group and has operations in the field of tea, electrical and engineering equipment, which account for 52%, 40% and 8% of the company's total revenues, respectively in FY2017. The Central Government holds a 89.25% stake in the company. AYCL has 12 tea estates located across Assam, Dooars and Darjeeling. The electrical division manufactures distribution transformers, HT & LT switchgears, voltage regulators in its manufacturing facilities located in Kolkata and Chennai. The engineering division manufactures industrial fans, air and water pollution control equipment in its plant located at Kalyani, West Bengal. During H1 FY2018, AYCL reported an operating income (OI) of INR159.09 crore and profit after tax (PAT) of INR15.92 crore compared to an OI of INR202.57 crore and PAT of INR29.33 crore in H1 FY2017. During FY2017, the company reported an OI of INR401.70 crore and PAT of INR30.21 crore compared to an OI of INR360.76 crore and PAT of INR8.55 crore in FY2016. ANOOP FORGINGS: ICRA Reaffirms B- Rating on INR4cr Cash Loan ------------------------------------------------------------ ICRA Ratings has reaffirmed the long-term rating of [ICRA]B- assigned to the INR6.00-crore fund-based facilities of Anoop Forgings Private Limited. ICRA has also reaffirmed the short-term rating of [ICRA]A4 assigned to the INR0.50-crore non-fund-based facility of AFPL. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash Credit 4.00 [ICRA]B- (Stable); Re-affirmed Fund-based-Packing Credit 3.00 [ICRA]B- (Stable); Re-affirmed Fund-based-FOBP/ FOUBP/FOUBNLC/ FAUBC/FABC 4.00 [ICRA]B- (Stable); Re-affirmed Non-fund based- Inland Letter of Credit 0.50 [ICRA]A4; Re-affirmed Rationale The reaffirmation of ratings takes into account AFPL's small scale of operations and losses incurred by the company in the last two years (FY2016 and FY2017) resulting in negligible cash generation from the business. ICRA also takes note of the weak financial profile characterised by stretched capital structure arising out of high debt levels and low net worth and weak debt coverage indicators. The ratings are also impacted by the vulnerability of the profitability to any adverse change in raw material prices, given that the contracts are primarily 'fixed price' in nature. ICRA also takes note of the high working capital intensity operations of the company, resulting in a tight liquidity position as witnessed by high working capital utilisation by the company in the last 12 months. The ratings are also impacted by AFPL's presence in a highly competitive and fragmented business segment with low entry barriers that leads to low operating margins, coupled with the vulnerability of its profitability to unfavourable movements in foreign exchange rates in the absence of a firm hedging mechanism. The ratings, however, favorably factor in the extensive experience of the promoters in the steel forging industry with an established relationship with its clients, which has enabled the company to garner repeat orders over the years. Going forward, the operating income of the company is expected to remain muted on account of slow order inflow and is likely to remain linked to the demand drivers in the end-user industries viz. automobile, farm equipment and petrochemical businesses. The profitability margins would remain vulnerable to fluctuations in steel prices and forex fluctuations. AFPL's ability to scale up operations and manage working capital effectively so as to improve its cash flow position would remain critical from a credit perspective. Outlook: Stable ICRA believes AFPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to a Positive if there is a substantial growth in revenue and profitability, and better working capital management strengthening the financial risk profile. The outlook may be revised to a Negative if revenues and cash accruals are lower than expected, or the company is unable to recover dues from its customers, which will stretch the working capital cycle and impact the overall financial profile of the company. Key rating drivers Credit strengths Extensive experience of promoters in the steel forging industry: AFPL's promoters have an experience of more than 15 years in the steel forging business. The extensive experience of the promoters has facilitated the company to establish strong relationships with its customers as well as suppliers. Credit challenges Small scale of operations: The company has a small scale of operations and witnessed a growth of 12% in FY2017. The operating income marked an increase in FY2017 backed by the increase in sales volume. The company booked an operating income of INR10.94 crore in 9M FY2018 (Apr-Dec 2017). This limits the benefits from economics of scale. The margins are largely affected by the raw material price fluctuation which in turn affects the sales realisations. Negligible cash generation from business on account of losses suffered in last two years: On account of the low operating profitability, the company incurred a cash loss of INR0.11 crore in FY2016. Further, it was able to generate cash profits of only INR0.03 crore in FY2017. It met its debt service obligations through working capital borrowings. Stretched capital structure with gearing of 8.3 times as on March 31, 2017 and weak coverage indicators: The total debt of AFPL as on March 31, 2017, primarily consists of working capital borrowings, unsecured loans from the directors and term loans. Net losses in FY2016 and FY2017 coupled with higher debt levels resulted in higher gearing of 8.3 times as on March 31, 2017 as compared to 6.0 times as on March 31, 2015. Though the gearing moderated to an extent as on December 31, 2017, the same still remains at a high level. The debt coverage indicator continues to remain weak with OPBDITA/Interest of 1.0 times and Total Debt/OPBIDTA of 10.4 times in FY2017. Fixed price contracts with the customers exposes AFPL to raw material price fluctuation risk: The major raw materials by the company are carbon steel bars and mild steel bars. AFPL procures the raw materials from the local manufacturers and remains vulnerable to commodity price increases, given the high share of raw material costs in the cost structure, and the project contracts are primarily "fixed-price" in nature, which limits its ability to pass on any sharp price increase to the customers. Profitability susceptible to foreign exchange fluctuation risks: The company's procurement of steel bars are backed by the demand of the same from the Indian and overseas market. Entire purchase of the company is made from the domestic market. While ~30-40% of the sales are in the international market. This exposes the company's profitability to any adverse movement in foreign exchange rates. High working capital intensity of operations: The average production cycle of the company is about three months. The inventory position of the company remains high as the company manufactures the products as per customer's design and specifications in bulk while the delivery of the same is in a scheduled manner. This results in high inventory of finished goods with the company. AFPL receives a credit period of 60-90 days from its suppliers. The creditor days of the company increased significantly in FY2017 and in the current financial year, on account of year-end purchases. Further, on account of its long standing relationship with the suppliers it avails of extended credit facilities from local suppliers. The creditors also include creditors for expenses like transportation and consumables to whom payment is made in three to four months. High inventory levels have resulted in high working capital intensity of operations (NWC/OI) of the company at 60% in 9M FY2018. The working capital limit utilisation levels have also remained high (90%) during the last 12-month period from January 2017 to December 2017. Intense competition due to highly fragmented industry structure: The company faces intense competition, being in a highly fragmented forging industry characterised by a large number of players in the organised as well as the unorganised segments. The company's profitability has thus remained moderate on account of the competitive pressures which have led to limited pricing power. Incorporated in 1991, Anoop Forgings Private Limited (AFPL) manufactures closed die forging products which caters to the automobile and allied industries, agriculture, machine building and petrochemical industries (flanges & pipe fittings). AFPL was constituted by Mr. Jitendra Verma who is currently the Managing Director of the company and is assisted by his son Mr. Rahul Verma, who is also a director in the company. The company has an installed capacity of 1500 Metric tonne per annum and its manufacturing facility is located in Murbad (near Thane). It manufactures forgings (gears, shafts and nuts) used in the automobile and farm equipment sector and various types of flanges and pipe fittings for the petrochemical industry. It supplies both machined and un-machined forgings (rough forgings) which are supplied in material grades such as carbon steel and stainless steel. In 9M FY2018 (April to December 2017), on a provisional basis, the company reported a net profit of INR0.1 crore on an operating income of INR10.9 crore and a net loss of INR0.1 crore on an operating income of INR12.7 crore in FY2017. ARUN LASER: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the long-term bank facility of Arun Laser Ovens Private Limited (ALOPL) at 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect ALOPL's modest scale, and working capital-intensive nature, of operations, and limited product diversity. These weaknesses are partially offset by the extensive experience of the promoters in the bakery equipment manufacturing industry. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations and limited product diversity: Revenue was modest at INR14.14 crore in fiscal 2017. Furthermore, the product range is limited as revenue is mainly generated from manufacturing tunnel ovens. Also, the customers are restricted to biscuit companies and bread producers, which constitute a limited market. * Working capital-intensive operations: Gross current assets were high at over 100 days, on account of stretched trade receivable days, as on March 31, 2017. Strength: * Experience of the promoters and joint venture (JV) partner: The promoters have been in the bakery machinery and equipment manufacturing segment for over two decades. Also, the JV partner, Laser Srl, is a leading Italian company with four JVs in this industry. Outlook: Stable CRISIL believes ALOPL will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if significant improvement in the scale of operations and profitability leads to better financial risk profile. The outlook may be revised to 'Negative' in case of larger-than-expected, debt-funded capital expenditure, a stretch in the working capital cycle, or lower-than-expected cash accrual, resulting in deterioration in the financial risk profile. ALOPL was incorporated in 2010, promoted by Mr Basker A L and his family members. The company, based in Tamil Nadu, manufactures tunnel ovens which find application in biscuit and bread manufacturing companies. Laser Srl holds 35% stake as a JV partner. BINANI CEMENT: Bain-Backed Group Submits Highest Bid ---------------------------------------------------- Bloomberg News reports that an investor group led by Dalmia Bharat Ltd., with backing from Bain Capital, submitted the highest bid for India's Binani Cement Ltd., which is being sold under the country's insolvency process, people with knowledge of the matter said. The Dalmia Bharat consortium made a final offer of more than 63 billion rupees ($978 million), Bloomberg relates citing people who asked not to be identified because the information is private. That topped the proposal from Indian billionaire Kumar Mangalam Birla's UltraTech Cement Ltd., which bid just above 62 billion rupees, the people said. While Dalmia Bharat offered the most money, there's no certainty its bid will be selected as the best offer, according to the people, Bloomberg relays. UltraTech, which is India's biggest cement manufacturer, scored higher on some other evaluation criteria, the people said. A decision on the winning bidder could be made within the next week, one of the people said. Bloomberg says a new Indian bankruptcy law designed to clear out distressed assets has set off a contest for more than 4 trillion rupees of deals and has spurred interest from both foreign and domestic companies and funds. Dalmia Bharat made a joint offer with India Resurgence Fund, which is backed by Bain Capital Credit and local conglomerate Piramal Enterprises Ltd., the people said. Both the Dalmia Bharat consortium and UltraTech offered around a 20 percent stake to Binani Cement creditors, the people said, Bloomberg adds. Binani Cement is a subsidiary of Binani Industries, a conglomerate with manufacturing and R&D operations. It has a manufacturing capacity of 11.25 million tonnes (mt) per annum with integrated plants in India and China, and grinding units in Dubai. As reported in the Troubled Company Reporter-Asia Pacific on July 27, 2017, Financial Express said the Kolkata bench of the National Company Law Tribunal (NCLT) on July 25, 2017, admitted an insolvency petition against Binani Cement. Bank of Baroda (BoB) had referred Binani to the bankruptcy court after it failed to repay a sum of INR97 crore. BoB has appointed Vijaykumar V Iyer of Deloitte India as the interim resolution professional (IRP) to oversee the insolvency process. In all, the company owes a consortium of lenders close to INR3,042.93 crore. Edelweiss ARC, which has bought over a chunk of the debt from bankers, is now the leader of the consortium. ERA INFRA: NCLT to Proceed With Insolvency Proceeding ----------------------------------------------------- Livemint.com reports that the National Company Law Tribunal on Feb. 16 decided to move ahead with insolvency proceedings against Era Infra Engineering Ltd initiated by Union Bank of India for recovery of INR681.04 crore, along with an overdue external commercial borrowing of $11.97 million, as on May 31, 2017. "Let all the petitions be listed for hearing before the Principle Bench," the 30-page NCLT order signed by President M.M Kumar and members R. Varadharajan and Deepa Krishnan reads, according to Livemint.com. Livemint.com relates that the tribunal rejected Era Infra's objection that since several company petitions had been filed before the Delhi high court with a prayer for winding up the corporate debtor and were pending, no insolvency proceedings could proceed before the tribunal. However, no official liquidator was appointed in pursuance of the said company petitions by the high court. ". . . there is no bar on NCLT to trigger an Insolvency Resolution Process on an application filed under sections 7, 9 &10 if a winding up petition is pending unless an official liquidator has been appointed and a winding up order has been passed," the order, as cited by Livemint.com, reads. The matter is listed for further consideration on March 28, Livemint.com notes. Era Infra Engineering Limited engages in the execution of construction contracts involving engineering, procurement and construction projects across a range of sectors, such as roads and highways, power, railways, metro, aviation, industrial, institutional and related segments. Its principal business activities are to carry on the business of builders, civil contractors, and sanitary engineers, architects, town planners and to submit tenders for the aforesaid business; to layout, develop, construct, build, erect, demolish, re-erect, repair, remodel, execute or do any other work in connection with any industrial complex/parks, flyovers, ports, airports, highways, roads, railways, irrigation, dam and canals, among others, and to act as manufacturer, trader, dealer, importer, exporter, buyer, seller of all any type/kind of material used in the construction/ infrastructure industry, including setting up of ready mix plant in India or abroad. Eighteen winding-up petitions filed by various operational and financial creditors against Era Infra Engineering are pending before the Delhi High Court, Livemint.com reported. Union Bank of India is not among them. Era Infra Engineering owes more than INR10,000 crore to its creditors. Era is one of the 12 bad loan accounts that have been directed by the central bank to be referred under IBC, Livemint.com said. FAITH LUMBER: ICRA Reaffirms B+ Rating on INR19cr Loan ------------------------------------------------------ ICRA Ratings has reaffirmed the long-term rating to [ICRA]B+ to the INR21.75-crore working capital facilities of Faith Lumber Private Limited (FLPL). ICRA has also reaffirmed the short-term rating at [ICRA]A4 to the INR2.75-crore cash credit facility of the company. ICRA reaffirmed the long-term rating of [ICRA]B+ and short-term rating of [ICRA]A4 to the INR3.25 crore unallocated limits of FLPL. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Buyer's Credit 19.00 [ICRA]B+(Stable); Reaffirmed Fund-based-Cash 2.75 [ICRA]B+(Stable)/[CRA]A4; Credit Reaffirmed Sublimit of CC (2.75) [ICRA]A4 Reaffirmed Unallocated Limit 3.25 [ICRA]B+(Stable)/[ICRA]A4; Reaffirmed Rationale The reaffirmation of ratings is constrained by FLPL's average financial risk profile reflected by low profitability margins, high gearing and negative cash flows. The ratings take into account the highly fragmented nature of the industry and availability of substitutes which lead to intense competition in the market. The ratings further consider the impact on profitability due to volatility of timber prices and availability of timber; which depends upon export regulations in the key supplying markets. ICRA also notes the vulnerability of profitability due to foreign exchange fluctuation owing to majority of procurement through imports. The ratings, however, continue to favorably consider the extensive experience of promoters in timber industry and the company's location specific advantage by virtue of its proximity to Kandla port, which eases the procurement. Outlook: Stable ICRA believes Faith Lumber Private Limited will continue to benefit from the extensive experience of its promoters and its established customer network. The outlook may be revised to 'Positive' if company witnesses substantial growth in operations and profitability, leading to improvement in coverage indicators and substantial improvement in capital structure through equity infusion while managing working capital cycle efficiently. The outlook may be revised to 'Negative' in case of deterioration in profit margins, or any major debt-funded capex, stretched working capital cycle which would stretch the liquidity of the company. Key rating drivers Credit strengths Extensive experience of the promoters in timber processing business: FLPL's operations are managed by Mr. Prashant Goel, who has an experience of over fifteen years in timber trading and processing business. The other directors of the company also have an extensive experience in the timber industry through their association with other timber entities previously which benefits the company in maintaining its customer network. Location specific advantage in terms of procurement of raw material: The manufacturing facility of the company is located at Gandhidham in Gujarat. This region has been declared as a timber zone by the Government due to its proximity to Kandla port which results in easing procurement costs. Credit challenges Average financial risk profile: The operating income of the company remained modest at INR56.92 crore in FY2017, registering a growth of ~7% compared to INR53.31 crore in FY2016 owing to increase in sales realisations. The net profit margin continued to remain low due to low value additive nature of business with 0.94% in FY2017. The company infused capital of INR1.00 crore in FY2017, however, due to high working capital requirement of INR19.73 crore the total debt remained high at INR20.08 crore as on March 31, 2017. Thus with high debt levels and relatively lower net worth , the capital structure continued to remain leverage with gearing of 3.57 times as on March 31, 2017. On account of low profitability, NCA/Debt stood low at 3% in FY2017. The working capital intensity remained stretched as March 31, 2017 due to high debtors and inventory level with NWC/OI of 37% compared to 32% as on March 31, 2016. Further, the working capital utilisation remained high with average utilisation of ~94% for past fifteen months period from October 2016 to January 2018. The free cash flow also turned negative due to high working capital requirement and interest cost coupled with low profitability margins. Intense competition due to presence of numerous unorganised players: Due to various benefits for entities located in Gandhidham region and low initial set up cost in timber trading/processing business, there is an intense competition from numerous small players in the market. Exposure to Government regulations and volatility in timber prices: Most of FLPL's timber requirement is met through imports from African and South America countries, Singapore and Malaysia. This exposes the company to risk arising from availability of timber and any adverse changes in timber export policies by the government of timber supplying countries. Also, due to high proportion of imports, the profitability remains exposed to any exchange rate fluctuations. Faith Lumber Private Limited was incorporated in October 2011 and commenced operations from July 2012. The company is engaged in trading and processing of lumber, wood logs and teak wood products such as mouldings, wooden frames etc. The processing facility, located at Gandhidham region of Gujarat has an installed processing capacity of ~23,520 Cubic Meter (CBM) per annum. The operations of the company are managed by Mr. Prashant Goel (director) along with his two brothers, who have extensive experience of more than fifteen years in the timber trading business. In FY2017, the company reported a net profit of INR0.53 crore on an operating income of INR56.92 crore, as compared to a net profit of INR0.53 crore on an operating income of INR53.31 crore in the previous year. GOEL ROAD: CRISIL Raises Rating on INR7.5MM Cash Loan to B+ ----------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facility of Goel Road Carriers Private Limited (GRCPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable', while reaffirming its rating on the short-term facility at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .5 CRISIL A4 (Reaffirmed) Cash Credit 7.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Term Loan 6.44 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects improvement in the business risk profile, driven by addition of customers towards the end of fiscal 2017. As a result, revenue was INR50 crore for the nine months through December 2017, and is expected at INR65-70 crore for fiscal 2018, against INR44.3 crore in fiscal 2017. Moreover, due to increase in demand, the company added around 70 new trucks in fiscal 2017, which has led to improved operating profitability (as dependence on rented vehicles has reduced) to 11% for the nine months through September 2018 from 9.4% in fiscal 2017 and 5.5% in fiscal 2016. Further, company is expected to have sufficient cash accruals against repayments over the medium term with an average financial risk profile. The ratings reflect a modest scale of operations in the fragmented road transport industry, large working capital requirement, and an average financial risk profile. These weaknesses are partially offset by the extensive industry experience of the promoters and sufficient cash accrual to meet repayment obligation. Key Rating Drivers & Detailed Description Strengths Weaknesses * Modest scale of operations in a fragmented industry: Revenue was modest at INR44.3 crore in fiscal 2017. Revenue is primarily derived from contracts with some major clients; however, the modest scale restricts bargaining power with these customers. With the addition of customers such as Hyundai Motor India Ltd and Maruti Suzuki India Limited, revenue has improved but should remain modest over the medium term. * Large working capital requirement: Gross current assets were high at 107 days as on March 31, 2017, mainly driven by substantial debtors. The company has to offer long credit periods, which at times get stretched beyond 90 days. Working capital requirement is expected to remain large over the medium term. * Average financial risk profile: The networth was small at INR8 crore as on March 31, 2017, rendering the financial risk profile susceptible to external business shocks. The gearing has increased to 2.7 times as on March 31, 2017, from 1.4 times a year earlier due to contracting of term debt to fund capital expenditure. However, due to better operating profitability, the interest coverage ratio has improved to 2.5 times for fiscal 2017 from 2.0 times in fiscal 2016. Strengths * Extensive industry experience of the promoters: The promoters have been involved in the road transportation business since 1988. They have thus established a strong track record of around three decades in the industry, catering to diversified industries such as power, automobile, plastic, mining, and consumer goods. Key customers include Thermax Ltd, GE T & D India Ltd, Mars International India Ltd, Tata Motors Ltd (rated 'CRISIL AA/Positive/CRISIL A1+'), and Hyundai Motor India Ltd ('CRISIL A1+'). * Sufficient cash accrual to meet repayment obligation: Cash accrual, expected at INR3.3 crore and INR3.9 crore for fiscal 2018 and fiscal 2019, respectively, will be sufficient to meet repayment obligation of INR2.9 crore in each fiscal. Moreover, promoters provide support through unsecured loans, the balance of which was INR1.7 crore as at March 31, 2017. Outlook: Stable CRISIL believes GRCPL will continue to benefit from the extensive industry experience of its promoters and established relationship with customers. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in the scale of operations and profitability, or significant improvement in liquidity supported by sizeable equity infusion. The outlook may be revised to 'Negative' in case of a steep decline in profitability, or significant deterioration in the capital structure caused most likely by a further stretch in the working capital cycle. GRCPL, previously known as RD Goel and Company Private Limited, is promoted by Mr Ashok Goel and his family members. The company provides road transportation with a fleet of about 140 owned vehicles and around 250-300 vehicles availed on rent, mainly on full-truck loading basis. GOYAL AGRO: ICRA Raises Rating on INR19cr Loan to B+ ---------------------------------------------------- ICRA Ratings has upgraded the long-term rating to [ICRA]B+ on the INR19.00-crore (reduced from INR29.00-crore) fund-based facility and the INR1.00-crore unallocated limits of Goyal Agro Foods (GAF). The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 19.00 [ICRA]B+(Stable); Upgraded from [ICRA]B(Stable) Unallocated Limits 1.00 [ICRA]B+(Stable); Upgraded from [ICRA]B(Stable) Rationale: The rating upgrade factors in GAF's healthy increase in operating income (OI) and cash accruals in FY2017. Moreover, there was an improvement in the company's working-capital intensity, which further led to reduction in Debt/OPBDITA levels. Also, the rating continues to be favorably supported by the firm's long track record of operations and the experience of the promoters in the rice industry, the proximity of the mill to a major rice growing area which ensures easy availability of paddy, and the stable demand outlook as rice is an important part of the staple Indian diet. ICRA's rating continues to factor in the entity's moderate scale of operations in the rice milling and sorting business, which coupled with the higher paddy prices and the high industry competition has resulted in low profitability and weak debt- coverage indicators. The rating continues to take into account the working-capital intensive nature of the rice milling business because of the need to maintain substantial inventories. Furthermore, the incremental working-capital requirement of the company was primarily funded through bank borrowings, leading to a highly-leveraged capital structure. The rating also continues to be constrained by agro-climatic risks, which affect paddy availability. ICRA also takes note of the partnership constitution of the firm, which exposes it to risks of dissolution and capital withdrawal. Going forward, the ability of the firm to improve its scale of operations in a profitable manner while improving capital structure and maintaining an optimal working-capital intensity will be the key rating sensitivities. Outlook: Stable ICRA believes that the firm will continue to benefit from the extensive experience of its promoters. The outlook may be revised to Positive if there is a substantial increase in the company's scale of operations and cash accruals. The outlook may be revised to Negative if cash accrual is lower than expected, or there is any major decline in sales turnover or stretch in the working- capital cycle weakens liquidity. Key rating drivers: Credit strengths Experienced management provides firm with competitive edge: The promoters and their family are involved in the business of rice for more than fifteen years and have gained a thorough knowledge of the markets. Such a long presence in the industry has helped the firm in establishing relationship with its suppliers and customers. Presence in a major rice growing area results in easy availability of rice: Paddy is mostly procured from the "mandis" of Punjab, Haryana, Uttar Pradesh and Delhi. Since the firm has its plant at Moga (Punjab), the raw materials are therefore easily available. Demand prospect of rice industry: Rice being a staple food grain and the position of India as world's second largest producer and consumer, demand prospects for the industry are expected to remain good Credit challenges High competitive intensity in the industry: The rice industry is highly competitive and fragmented in nature with numerous players. Given the low capex and technical complexity of work, the entry barriers have remained low, resulting in a large number of small-to-medium scale enterprises. Vulnerability to vagaries of monsoon and other agricultural risks: The rice being an agricultural commodity is exposed to vagaries of monsoon and other agricultural risks like outbreak of diseases, lower/higher than projected production levels impacting the supply and hence prices, damages caused due to poor storage capacities in the country and inconsistencies in quality etc. Company's ability to buy paddy of consistent quality at right price is the key to success in the basmati rice industry. Incorporated in 2007, GAF is a proprietorship concern engaged in milling, processing and sorting of Basmati rice. The company also mills paddy for the Government. It has its plant at Moga (Punjab) with a milling capacity of 9 tonne per hour. The company was primarily involved in custom milling and trading of rice till 2014. However, from FY2015 onwards, it started selling to exporters as well. GAF recorded a net profit of INR1.71 crore on an OI of INR84.71 crore in FY2017 as against a net profit of INR0.48 crore on an OI of INR41.10 crore in the previous year. HEXAGON-MIDCO INDIA: CRISIL Cuts Rating on INR4MM Loan to B+ ------------------------------------------------------------ CRISIL Ratings has downgraded its rating on the bank facilities of Hexagon-Midco India Private Limited (HMIPL) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 (Downgraded from 'CRISIL A4+') Cash Credit 4 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Import Letter of 2 CRISIL A4 (Downgraded from Credit Limit 'CRISIL A4+') The downgrade reflects weakening of HMIPL's business risk profile because of stretched working capital cycle and delay in debtor realization. The company reported operating losses in H1FY18. These ratings also factor in modest scale of operations, volatile in operating margins and exposure to intense competition. The ratings however continue to draw strength from HDIPL's established customer relationships and moderate financial risk profile. Key Rating Drivers & Detailed Description Weakness * Elongated working capital: HMIPL's working capital cycle remains elongated. The gross current assets increased further to 336 days as on March 31, 2017 from 330 days as on March 31, 2016 on back of 100 days of receivables and inventory days of 122 days as on March 31, 2017. * Modest scale of operations and exposure to intense competition: Organized players such as HMIPL face intense competition due to the unorganized and highly fragmented nature of industry restricting its ability to pass on increase in input costs. HMIPL recorded muted sales growth in fiscal year 2017. The company reported operating losses in H1FY18 of Rs.59 lakhs. Strengths * Established customer relationships: The company derives support from promoters who have been in the industry for more than two decades which has enabled the company to diversify its product portfolio and establish a long standing relationship with its customers. * Moderate Financial risk profile: The Company has low gearing with moderate networth and above average debt protection metrics with absence of any term debt repayment obligations. Outlook: Stable CRISIL believes HMIPL will continue to benefit from its established customer relationships over the medium term. The outlook may be revised to 'Positive' if the company's business risk profile improves significantly, driven most likely by an increase in scale of operations and improved profitability. Conversely, the outlook may be revised to 'Negative' in case of further deterioration in HMIPL's working capital cycle, deterioration in liquidity due to reduced cash accruals or deterioration in capital structure due to considerable debt- funded capex. Based out of Mumbai, Maharashtra, Hexagon-Midco India Private Limited (HMIPL) was established as private limited company in 2004. HMIPL is engaged in manufacturing of signage, billboards and other forms of name boards for its industrial clients using metal components. JAISHRIRAM SUGAR: CRISIL Lowers Rating on INR29.15MM Loan to D -------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Jaishriram Sugar and Agro Products Limited (JSAPL) to 'CRISIL D' from 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.35 CRISIL D (Downgraded from 'CRISIL B-/Stable') Funded Interest Term Loan .82 CRISIL D (Downgraded from 'CRISIL B-/Stable') Sugar Pledge Cash Credit 29.15 CRISIL D (Downgraded from 'CRISIL B-/Stable') Term Loan 7.74 CRISIL D (Downgraded from 'CRISIL B-/Stable') The downgrade reflects the continuously overdrawn cash credit limit for more than 30 days in the recent past, and delays in servicing term loan, because of stretched liquidity. The rating reflects a weak financial risk profile and susceptibility to cyclicality in, and the regulatory framework of, the sugar industry. These weaknesses are partially offset by the industry experience of the promoters, their funding support, and semi-integrated operations. Analytical Approach For arriving at the ratings, CRISIL has treated 75% of preference shares as equity, and the remaining as debt, as these are redeemable, non-cumulative shares bearing a coupon rate of 7% for 20 years. Key Rating Drivers & Detailed Description Weakness * Continuously overdrawn cash credit limit and delays in servicing term loan: The company has been continually overdrawing its cash credit limit for more than 30 days in the recent past, and has delayed the servicing of its term loan. * Weak financial risk profile: Large accumulated losses have eroded the networth. The debt protection metrics too have been weak: the interest coverage ratio is estimated at 1.09 times for fiscal 2017, driven by high interest costs. * Susceptibility to cyclicality in, and the regulatory framework of, the sugar industry: The sugar manufacturing industry is highly regulated and is also exposed to risks related to seasonality in sugarcane production. These factors impact the scale of operations and profitability. Strengths * Extensive industry experience of the promoters: The promoters, Mr Navale and his family members, have been engaged in the sugar business for over five years, and have developed a healthy relationship with local farmers. Daily operations are also managed by Mr K N Nibe, who has experience in running sugar plants in Maharashtra for over two decades. The promoters and group companies have extended unsecured loans of INR65.67 crore (as of March 31, 2016) to cover working capital requirement. * Moderate operating efficiency, backed by semi-integrated operations: The company has sugarcane crushing as well as power generation capacities. This lends stability to revenue, and helps to weather downturns in the industry, unlike non-integrated players. JSAPL, incorporated in February 2006, has a sugar plant with capacity to crush 1600 tonne of cane per day, and a 5-megawatt co-generation plant. The plants, at Halgaon in Ahmednagar, Maharashtra, commenced commercial operations in fiscal 2013. JAWA PLASTECH: CRISIL Assigns B+ Rating to INR4.9MM LT Loan ----------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Jawa Plastech Private Limited (JPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Facility 1.25 CRISIL B+/Stable (Assigned) Proposed Long Term Bank Loan Facility 4.9 CRISIL B+/Stable (Assigned) Term Loan 3.85 CRISIL B+/Stable (Assigned) The rating reflects a modest scale of operations, nascent stages of operations, and a weak financial risk profile. These weaknesses are partially offset by the extensive experience of promoters in the injection-moulded plastic products manufacturing industry. Analytical Approach CRISIL has treated unsecured loans of INR3.63 crore as on March 31, 2017, as neither debt nor equity as they are subordinated to bank debt and are expected to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and nascent stages of operations: The company began production in April 2016, and hence revenue was a modest Rs. 11.75 crore in fiscal 2017. The company is in the process of increasing its production capacity, supported by purchase of additional machines. The scale is, however, expected to remain modest over the medium term. * Weak financial risk profile: The networth was small at INR2.17 crore and the gearing high at 2.35 times, owing to debt funded capital expenditure, as on March 31, 2017. Debt protection metrics in fiscal 2017 were moderate as reflected in interest coverage ratio of 2.57 times and net cash accrual to adjusted debt ratio of 0.13 time. Strength * Extensive Industry experience of promoters: The promoters have an experience of over 25 years in manufacturing of injection- moulded plastic products. Prior to establishing JPPL in 2016, they were engaged with the operations of JPPL. The experience has led to an established relationship with key stakeholders. Outlook: Stable CRISIL believes the company will continue to benefit from the industry experience of its promoters. The outlook may be revised to 'Positive' if operations at the unit stabilise as envisaged, while cash accrual and debt protection metrics improve. The outlook may be revised to 'Negative' in case of a significant delay stabilisation of the unit or lower-than-expected cash accrual, leading to stretched liquidity. Incorporated in 2005, JPPL is promoted by Mr Subhash Jawa, his wife, Mrs Shalini Jawa, Mr Arvind Jawa, and Mr Anup Jawa. The New Delhi-based company manufactures injection-moulded plastic parts for Luxor International Pvt Ltd. It began production in April 2016. JSRM FOODS: CRISIL Removes B+ Rating From Not Cooperating Cat. -------------------------------------------------------------- Due to inadequate information, and in line with SEBI guidelines, CRISIL Ratings had migrated its rating on the long-term bank facilities of J. S. R. M. Foods (JSRMF) to 'CRISIL B+/Stable; Issuer not cooperating'. However, the management has started sharing the information necessary for a comprehensive review of the rating. Consequently, CRISIL is migrating the rating on the bank facilities of JSRMF from 'CRISIL B+/Stable; Issuer not cooperating' to 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable Issuer Not Cooperating) Proposed Long Term .92 CRISIL B+/Stable (Migrated Bank Loan Facility from 'CRISIL B+/Stable Issuer Not Cooperating) Term Loan 1.08 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable Issuer Not Cooperating) The rating continues to reflect the firm's average financial risk profile, modest scale of operations and profitability, and exposure to intense competition. These weaknesses are partially offset by the proprietor's extensive experience in the rice milling industry, and efficient working capital management. Analytical Approach Unsecured loans from the proprietor, which stood at INR0.70 crore as on March 31, 2017, are treated as neither debt nor equity as the loans are likely to remain in the business over the medium term and are interest-free. Key Rating Drivers & Detailed Description Weaknesses * Average financial risk profile: JSRMF's networth was small at INR2.58 crore and gearing was high at 3.36 times as on March 31, 2017. Debt protection metrics remained average, reflected in interest coverage and net cash accrual to total debt ratios of 1.6 times and 0.05 time, respectively, in fiscal 2017. * Modest scale of operations and profitability: Revenue and profitability remained modest due to intense competition and pricing pressure in the highly fragmented rice milling industry. Though the firm benefits from its established customer relationships, it remains susceptible to intense competition. Strengths: * Extensive experience of the proprietor: The proprietor has experience of over 25 years and a deep understanding of the dynamics of the local market, which helps anticipate price trends and calibrate purchasing and stocking decisions. Outlook: Stable CRISIL believes JSRMF will continue to benefit from its proprietor's extensive industry experience and established relationships with customers. The outlook may be revised to 'Positive' if there is a significant increase in revenue and profitability, resulting in better accrual, or a substantial improvement in working capital management and capital structure. The outlook may be revised to 'Negative' if stretch in working capital cycle weakens liquidity, or if sizeable debt-funded capex constrains financial risk profile. Set up in 2012 and based in Gondia (Maharashtra), JSRMF is a proprietorship firm of Mr Abhinav Agrawal. It processes paddy into rice, rice bran, and broken rice. It has installed paddy milling capacity of 160 tonne per day (tpd). KAMLESHKUMAR BALUBHAI: CRISIL Cuts Rating on INR6.25MM Loan to D ---------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Kamleshkumar Balubhai Lad (KBL) to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5.25 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 6.25 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects the firm's overdrawn cash credit facility for more than 30 days on account of stretched liquidity due to subdued sales and large receivables. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations with exposure to intense competition: KBL's modest scale, reflected in revenue of INR13.2 crore in fiscal 2017, limits ability to participate in large tenders, thus limiting scope for growth, and constrains its bargaining power with suppliers. Fragmentation in the civil construction industry has kept profitability modest and volatile. Operating margin ranged from 7.9% to 14.6% in the four fiscals through 2017, and is expected to be subdued over the medium term. * Overdrawn bank facilities because of stretched working capital cycle: The firm's liquidity is stretched because of working capital-intensive operations driven by large debtors and inventory. Consequently, its working capital limits were overdrawn beyond 30 days. Strength * Extensive experience of the proprietor: Mr Kamlesh Lad's experience of around 25 years as a contractor for road construction works in Gujarat, has enabled the firm to establish a strong presence in the segment in the state. Since 1983, the firm has been undertaking road construction works for local government bodies in Gujarat. Established in 1983 as a proprietorship firm and promoted by Mr Kamlesh Lad, KBL executes road construction contracts in Gujarat. KARANJA TERMINAL: CRISIL Lowers Rating on INR480MM Term Loan to D ----------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank loan facility of Karanja Terminal & Logistics Private Limited (KTLPL) to 'CRISIL D' from 'CRISIL BB-/Stable'. The downgrade reflects the weak liquidity position of the company marked by delays in servicing of interest on term loan. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 480 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Key Rating Drivers & Detailed Description Weakness * Weak liquidity position: KTLPL's liquidity position in weak and is marked by delays in the servicing of interest on term loan. * Exposure to inherent project implementation risks: Given the current stage of implementation of KTLPL's port project, the company faces project completion challenges. Any time or cost overrun in project completion can affect cash flow generation and remains a key rating sensitivity factor. Strengths * Strategic location, ability to handle a diversified cargo-mix and diversified revenue sources: KTLPL's project comprises of constructing a container and multipurpose berths. It would provide ship-related services, port conservancy services, cargo- related services among others and is expected to have a diversified revenue profile. Moreover, the port is strategically located - 25 kilometres (km) away from Jawaharlal Nehru Port Trust (JNPT), along the SH-54 and NH-17 Highway. * Extensive experience of promoters in the ports industry: The promoters of KLTPL have an extensive experience in infrastructure development and have over past twenty years developed large scale projects in Infrastructure sector such as Pipavav Port, Pipavav Expressway, Pipavav Railway and Pipavav Shipyard. KTLPL was incorporated in 2010 as a special purpose vehicle to set up and operate a multipurpose terminal and ship repair facility at Karanja creek in Raigad, Maharashtra. KTC AUTOMOTIVE: CRISIL Reaffirms B Rating on INR7.32MM Cash Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank facilities of KTC Automotive Company (KTC) at 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1 CRISIL A4 (Reaffirmed) Cash Credit 7.32 CRISIL B/Stable (Reaffirmed) Term Loan .68 CRISIL B/Stable (Reaffirmed) The ratings continue to reflect KTC's modest scale of operations in the intensely competitive automobile dealership industry in Kerala and its below-average financial risk profile. These weaknesses are partially offset by the extensive experience of the firm's promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: With revenue of INR99.8 crore in fiscal 2017, scale of operations remains small and prevents the firm from enjoying benefits arising from economies of scale. Further increasing competition from other dealers also constrains the overall revenue profile. * Below-average financial risk profile: Networth and total outside liabilities to tangible networth were weak at INR3.2 crore and 6.29 times, respectively, as on March 31, 2017. Interest coverage ratio was 1.36 times due to large working capital debt in fiscal 2017 Strength: * Extensive experience of the promoters: Benefits from the promoters' decade-long experience in the industry through other principals and healthy relationships with Mahindra & Mahindra (M&M) should support business. Their experience has helped identify potential untapped market regions for improvement in scale and gaining traction for operations. Outlook: Stable CRISIL believes KTC will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if increase in accrual and a stronger capital structure strengthens financial risk profile. The outlook may be revised to 'Negative' if stretch in working capital cycle or any large, debt-funded capex weakens financial risk profile. Set up in 2002, KTC is a partnership firm and authorised dealer for the passenger cars and light commercial vehicles of M&M for Ernakulum, Calicut, Kannur, Wayanad and Kozhikode districts. Promoted by Mr P V Nidhish, it has 9 showrooms in Kerala. Net profit was INR0.8 crore on net sales of INR99.8 crore in fiscal 2017 against net loss of INR3.9 crore and INR89 crore, respectively, in fiscal 2016. NACHIMUTHU INDUSTRIAL: CRISIL Assigns D Rating to INR23MM Loan -------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL D' rating to the long- term bank facilities of Nachimuthu Industrial Association (NIA). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 12 CRISIL D (Assigned) Term Loan 23 CRISIL D (Assigned) The rating reflects delay in servicing term loan due to cash flow mismatch arising out of fee receipts. Key Rating Drivers & Detailed Description Weaknesses * Delay in debt servicing due to cash flow mismatch: Interest due for November 2017 was paid with a delay of 30 days while the December interest is yet to be serviced. This is because while debt instalments are monthly, fees are received during June- September, which results in cash flow mismatch. * Geographical concentration in revenue: All of NIA's institutes are located in Pollachi, Tamil Nadu. It has no presence outside the region. Strengths * Long track record: Established in 1956, the association set up its first institute, Nachimuthu Polytechnic College, in 1957. Its current aggregate student strength is over 13,000. NIA was founded by Dr N Mahalingam in 1956 in Pollachi to facilitate technical education in the region. It operates 10 institutes (3 colleges, 6 schools, and 1 vocational training centre) and a social development initiative. NATIONAL EXPORT: CRISIL Lowers Rating on INR12MM Cash Loan to B --------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facility of National Export Industries (NEI) to 'CRISIL B/Stable' from 'CRISIL B+/Stable,' and reaffirmed the short-term rating at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .01 CRISIL A4 (Reaffirmed) Cash Credit 12.00 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Proposed Long Term Bank Loan Facility 1.35 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade in rating reflects subdued business performance, following the imposition of high minimum support price (MSP) on groundnut, by the Government of Gujarat. The ratings continue to reflect the modest scale of operations and limited access to raw material at reasonable rates. These strengths are partially offset by extensive experience of the partners. Key Rating Drivers & Detailed Description Weakness * Adverse regulatory issues: The high MSP imposed by the Government of Gujarat on groundnut, to safeguard the interests of farmers, has made it extremely challenging for players like NIE to source raw material at reasonable prices in the last two years. Thus, business performance remains susceptible to government regulations. * Modest scale of operations: Intense competition in an industry, in which unorganized players contribute to over 50% of the industry has kept the scale of operations modest, as indicated by revenue of INR30 Cr in FY17. Strength * Extensive experience of partners: The three decade-long experience of the partners in the groundnut industry, and their established relationships with suppliers and customers, will continue to support the business risk profile. Outlook: Stable CRISIL believes NEI will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if higher-than-expected sales and profitability lead to better cash accrual. The outlook may be revised to 'Negative' if in case of a decline in profitability, which in turn could weaken the financial risk profile. NEI a partnership firm, is involved in the manufacturing and trading of ground nut oil and de-oiled cake (DOC). Plant is located in Rajkot, Gujarat. NORTH EASTERN: ICRA Removes B+ Rating From Not Cooperating Cat. -------------------------------------------------------------- ICRA Ratings has removed its earlier rating of [ICRA]B+ (Stable) from the 'ISSUER NOT COOPERATING' category as North Eastern Karnataka Road Transport Corporation (NEKRTC) has now submitted its 'No Default Statement' ("NDS") which validates that the entity is regular in meeting its debt servicing obligations. The entity's rating was moved to the 'ISSUER NOT COOPERATING' category in November 2017. The current rating derives comfort from the importance of NEKRTC to the Government of Karnataka (GoK), with the corporation playing a critical role in providing transport services in the north east districts of the state, and the financial flexibility enjoyed by it for being a state-owned entity with regular capital support received from the GoK. P.K.M PROJECTS: ICRA Reaffirms D Rating on INR40cr LT Loan ---------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating at [ICRA]D on the INR40.00-crore fund-based limits of P.K.M Projects Private Limited (PKM). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund Based-Term loan 40.00 [ICRA]D; Reaffirmed Rationale The rating reaffirmation factors in the continued delays in debt servicing by PKM on the loans availed for acquisition of a hotel property in Goa. The company has invested almost the entire estimated funds; however, the hotel is yet to commence operations. Further, PKM is yet to tie up with an operations and management (O&M) partner, resulting in delay in the commencement of its operations. The company will remain dependent on promoter support for servicing its debt obligations. Going forward, the timely debt servicing will be the key monitorable. Key rating drivers Credit strengths Favourable location of the project - The hotel property is located at a favorable location, which is 200 meters from the beachfront, in the prime entertainment hub of North Goa's Candolim beach. Credit weaknesses Delay in debt servicing: The company continues to delay its debt servicing as the commercial operations of the hotel are yet to start. The company will remain dependent on promoter support for servicing its debt obligations. Delay in commencement of operations: The company has invested almost the entire estimated funds; however, the hotel is yet to commence operations. Further, PKM is yet to tie up with an operations and management (O&M) partner, resulting in delay in the commencement of its operations. PKM was incorporated in December 2006 and is a part of the Mahesh Mehta Group of companies, which has interests in hotel business, real estate business and is also into manufacturing of Kattha Products. The company had acquired one hotel property in Goa, which is yet to commence operations PAAPPAI EXPORTS: CRISIL Assigns B+ Rating to INR1.8MM LT Loan ------------------------------------------------------------- CRISIL Ratings has assigned its ratings of 'CRISIL B+/Stable/CRISIL A4' on the bank facilities of Paappai Exports (PE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility .2 CRISIL B+/Stable (Assigned) Long Term Loan 1.8 CRISIL B+/Stable (Assigned) Packing Credit 8.5 CRISIL A4 (Assigned) The rating reflects modest scale and working-capital-intensive nature of operations, leveraged capital structure and exposure to intense competition. These strengths are partially offset by partners' extensive experience and established relationship with customers and suppliers. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale and working-capital-intensive nature of operations: Scale of operations is modest with revenue estimated at INR16.1 crore in fiscal 2017 despite presence of over a decade. Operations are also working capital intensive with estimated gross current asset days of 212 days as on March 31, 2017, because of large inventory and debtors. Scale should remain modest, despite some improvement on the back of capacity addition and improved order book. * Leveraged capital structure: Total outside liabilities to adjusted networth (TOLANW) is high at 4.6 times as on March 31, 2017. The capital structure is expected to remain weak owing to sizeable working capital debt. Bank limit utilisation may remain high. Cash accrual is adequate for debt servicing. Interest coverage ratio was moderate at 2.43 times in fiscal 2017 and is expected to be stable going forward. * Exposure to intense competition: Textile industry in highly fragmented and the firm is exposed to intense competition from both domestic and international players. Strength: * Partners' extensive experience and established relationship with customers and suppliers: PE benefits from the industry experience of its promoters, who have been in the RMG segment for over a decade. The promoters have established relations with key customers such as Levis, Fila, with whom they have been associated for around 10 years. The company's ability to maintain healthy product quality while meeting its customers' stringent delivery deadlines enabled it to obtain repeat orders over the past few years, as reflected in steady revenues. Outlook: Stable CRISIL believes that PE will benefit from the extensive experience of the partners and their established relationships with customers and suppliers. The outlook may be revised to 'Positive' if improvement in cash accrual leads to stronger financial risk profile and liquidity. The outlook may be revised to 'Negative' if low cash accrual, large capital expenditure or capital withdrawal, or stretch in working capital cycle weakens financial risk profile. Set up in 2008, PE is based in Tiruppur, and manufactures hosiery garments. Mr V Suryanarayanan, C Leelakrishnan, D Vijayakumar, D Sivakumar, L Sumathi and L Pradeep Kannan are the partners. PADMINI BAKERS: CRISIL Assigns B+ Rating to INR5.0MM Cash Loan -------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Padmini Bakers Pvt Ltd (PBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.0 CRISIL B+/Stable (Assigned) Long Term Loan 4.3 CRISIL B+/Stable (Assigned) The rating reflects the extensive experience of Aggarwal family and Atop Food Products Pvt Ltd (Atop; rated 'CRISIL BB/Stable') in trading food products. This strength is partially offset by absence of any operational track record. Key Rating Drivers & Detailed Description Strengths * Extensive experience of promoters: Business risk profile will benefit from tie-up with Atop (holds 55% stake) and PBPL's own distribution network in Chhattisgarh, Madhya Pradesh, and Odisha. This will translate into moderate revenue visibility over the medium term. Weakness * Lack of operational track record: PBPL is expected to begin operations from January 2018. Timely commencement of business, sale of products, and stabilisation of working capital cycle will remain key rating sensitivity factors. Outlook: Stable CRISIL believes PBPL will benefit over the medium term from the extensive experience of its promoters. The outlook may be changed to 'Positive' in case of ramp in operations and better-than- expected cash generation with efficient working capital cycle. The outlook may be changed to 'Negative' if substantially low cash generation and stretched working capital cycle due to weaker-than-expected revenue put pressure on financial risk profile. Established in 2015 by Mr Shishir Aggarwal and Mr Sushil Aggarwal, PBPL is setting up a facility in Raipur to manufacture potato chips, fryums, and namkeen. Installation of machinery is pending and commercial operations are likely to start from January 2018. PLASCARE INDUSTRIES: CRISIL Cuts Rating on INR29.38MM Loan to D --------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Plascare Industries Private Limited (PIPL) to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 7.12 CRISIL D (Downgraded from 'CRISIL A4') Letter of Credit 3.5 CRISIL D (Downgraded from 'CRISIL A4') Proposed Long Term 29.38 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL A4') The ratings downgrade reflects the instances of delay by PIPL in servicing its debt obligation; the delays have been caused by the company's weak liquidity. PIPL has weak liquidity because of its inadequate cash accruals and its high bank limit utilisation. The ratings also reflect its large working capital requirement. This weakness is partially off-set by its promoter's extensive experience in PET bottle manufacturing industry Key Rating Drivers & Detailed Description Weakness * Working Capital intensive operations: GCAs were high at 345 days, driven by substantial inventory of 169 days, as on March 31, 2017. Working capital requirement is partly funded through credit from suppliers (payables were 62 days as on March 31, 2017). Strength * Extensive experience of promoters: PIPL's business risk profile is supported by the extensive experience of its promoter Mr. Somemdra Khosla. The promoter is an NRI prom Dubai and has over 37 years of experience in fields of financial services, real estate and hospital management. PIPL was set up in 2004 by Mr. S Khosla and Mr. R Vasan. The company manufactures polycarbonate bottles, polypropylene closures, and polyethylene terephthalate preforms and closures. POONAM GRAH: CRISIL Lowers Rating on INR10MM Loan to B+ ------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Poonam Grah Nirman Private Limited (PGN) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Downgraded from 'CRISIL A4+') Overdraft 10 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects weakening of PGN's business profile, mainly its operating income. Revenue declined to INR19 crore (operating margin of 11.5%) in fiscal 2017, from INR31 crore (9.4%) in fiscal 2016. Working capital requirement also increased, as reflected in gross current assets (GCAs) of 207 days as on March 31, 2017, against 111 days a year earlier. All this affected the net cash accrual, which reduced to INR0.77 crore from INR1.59 crore. The business risk profile should remain constrained over the medium term owing to volatility in the operating performance. The ratings also reflect PGN's modest scale of operations in the civil construction industry, and its large working capital requirement. These weaknesses are partially offset by the extensive industry experience of the promoter. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations and exposure to intense competition The civil construction industry is highly fragmented, but is dominated by a few large players. The company had modest revenue of around INR19 crore in in fiscal 2017, thus restricting any advantages of economies of scale available to players with larger volumes. * Large working capital requirement: GCAs were high at 207 days, driven by substantial inventory of 141 days, as on March 31, 2017. Working capital requirement is partly funded through credit from suppliers (payables were 170 days as on March 31, 2017). Strength * Extensive industry experience of the promoter: The promoter has about 18 years of experience as a civil contractor for various government bodies in Kerala. Prior to establishing the company in 1998, Mr. Anantha Narayanan worked as a contractor for various Kerala government projects. Outlook: Stable CRISIL believes PGN will continue to benefit from the extensive industry experience of its promoter. The outlook may be revised to 'Positive' in case of significant improvement in the scale of operations and profitability, leading to a better financial risk profile. The outlook may be revised to 'Negative' in case of a decline in revenue or profitability, deterioration in working capital management, or any large, debt-funded capital expenditure, weakening the financial risk profile. PGNL was established in 1998 by Mr Anantha Naryanan. The company undertakes civil construction works in Kerala. It is primarily a contractor for Airports Authority of India, the Indian Railways, and Indian Oil Corporation Ltd in Kerala, for which it constructs parking bases and pavements, and undertakes runway resurfacing. POWERMAX RUBBER: CRISIL Raises Rating on INR6MM Term Loan to B -------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facility of Powermax Rubber Factory to 'CRISIL B/Stable' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Term Loan 6 CRISIL B/Stable (Upgraded from 'CRISIL D') Proposed Long Term 4 CRISIL B/Stable (Upgraded Bank Loan Facility from 'CRISIL D') The upgrade reflects regularisation of term loan repayments over the three months ended January 2018. The rating reflects PRF's nascent stage of operations and below- average financial risk profile .These weaknesses are partially offset by the extensive experience of its promoters. Key Rating Drivers & Detailed Description Weaknesses * Nascent stage of operations: Since commercial production began in November 2017, stabilisation of operations will remain a key rating driver. * Below-average financial risk profile: The firm has a below average financial risk profile marked by a high gearing of 3.57 times as on 31 March,2017. The firm has also been servicing debt obligations through fund support from promoters Strengths * Extensive experience of promoters: Benefits from the partners' 15 years of experience and tie-up with Apollo Tyres should support the business. Outlook: Stable CRISIL believes that PRF will maintain a stable business risk profile backed by its promoter's extensive experience in the tyre manufacturing industry. The outlook may be revised to 'Positive' if the firm strengthens its business risk profile by stabilizing and increasing its scale of operations. Conversely, the outlook may be revised to 'Negative' if PRF's revenues and profitability declines significantly, there are considerable delays in realization of receivables, thereby weakening its financial risk profile and liquidity. Set up as a partnership firm by Mr Rajesh Jain ,Chennai-based PRF manufactures tyres for 2-, 3-, and 4-wheelers. Facility in Gummadipondi, Tamil Nadu, began operations from November 2017. PROTAC FOODS: ICRA Cuts Rating on INR18cr Term Loan to D -------------------------------------------------------- ICRA Ratings has downgraded the long-term rating to [ICRA]D ISSUER NOT-COOPERATING from [ICRA]B ISSUER NOT-COOPERATING for the INR22.00-crore fund-based facilities of Protac Foods International Private Limited (PFIPL). The rating continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Fund- 4.00 [ICRA]D ISSUER NOT-COOPERATING; Based-Cash Credit Revised from [ICRA]B (Stable) ISSUER NOT-COOPERATING Long-term-Fund- 18.00 [ICRA]D ISSUER NOT-COOPERATING; Based-Term Loan Revised from [ICRA]B (Stable) ISSUER NOT-COOPERATING ICRA has limited information on the entity's performance since the time it was last rated in February 2017. As part of its process and in accordance with its rating agreement with PFIPL, 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. Rationale The rating downgrade follows the delays in debt servicing by PFIPL to the lender(s), as confirmed by them to ICRA. The company's profitability and liquidity position has been impacted owing to delays in stabilisation of the operations. With high repayment obligations, delay in sanctioning of additional working-capital facilities and delay in receipt of government grant for the capital expenditure incurred, the company's liquidity position remains stretched. Going forward, PFIPL's ability to demonstrate a track record of timely debt servicing will be the key rating sensitivity. Key rating drivers Credit strengths Experience of the promoters in the food processing and poultry industry: The promoters of PFIPL were involved in the poultry industry prior to the establishment of the company, due to which they have gained significant industry experience. Credit challenges Delay in debt servicing: Irregularities in debt servicing with delay in principal and interest repayments owing to weak liquidity position. Nascent stage of operations: The company started its operations in July 2016 and has been reporting losses at operating level as of November 2016. Due to limited track record of operations, the ability of the company to ramp up its production levels, increase the capacity utilization and break even, is yet to be demonstrated. Weak capital structure with low net-worth and significant term loan: There has been high dependency on external funding for the capital expenditure incurred towards construction of the processing plant, resulting in a weak capital structure with a gearing of 3.70 times as on November 30, 2016. Strained liquidity profile due to sizeable scheduled repayments on the term loans; request for enhancement in the working-capital loans not sanctioned: The liquidity profile remains weak with negative accruals as on November 2016 and repayment of term loans already having begun. Also, the company had requested for enhancement in the working-capital limits to ease the liquidity constraint and meet the increasing working requirements of the growing business. However, the same is yet to be sanctioned by the bank. Incorporated in February 2014, PFIPL started its commercial operations from July 2016. The company is engaged in processing of poultry birds for production of dressed and frozen chicken. The product portfolio of the company consists of fresh chilled chicken, frozen chicken, chicken cut parts (whole, boneless and portions) and ready to eat product (marinated chicken pieces). The company's processing plant is located in Kolar district of Karnataka and has an installed capacity of processing 6000 birds per hour. However, with certain capital expenditure yet to undertaken, the current operational capacity stands at 2500 birds per hour. As per provisional results for FY2017, the company reported a net loss of INR5.64 crore on an operating income of INR10.96 crore for the period from July 2016 to November 2016. RUBICON INSPECTION: CRISIL Cuts Rating on INR3.0MM Cash Loan to D ----------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Rubicon Inspection Systems Private Limited (Rubicon) to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 3.0 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long Term Bank Loan Facility 1.5 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects the continuously overdrawn cash credit limit as liquidity was stretched due to large working capital requirement. The rating reflects modest scale of operations and large working capital requirement. However, it benefits from the experience of the promoter in the civil service contract industry. Key Rating Drivers & Detailed Description Weaknesses * Continuously overdrawn cash credit limit: Large working capital requirement coupled with delay in debtor realisation has led to continuous overdrawing of the cash credit limit for more than 30 days. * Modest scale of operations, and dependence on tenders floated by municipal corporations and water/sewage boards: Revenue was modest at INR14.10 crore in fiscal 2017 due to a decline in orders. The company undertakes small service contracts for cleaning drains and storm water lines, inspection of these through CCTV (closed-circuit television), laying gravity pipes, and underground earthwork. Tendering and awarding of such orders depend on budgets of the respective municipal corporations and water boards. * Large working capital requirement: Gross current assets increased to 118 days as on March 31, 2017, from 95 days as on March 31, 2016, primarily due to higher receivables of 54 days. The billing to customers is done in phases. The last phase payment gets delayed. Hence, debtors are high in the year in which the last phase payment falls due. Strength * Extensive industry experience of the promoter: The promoter has been undertaking contracts for drain maintenance and CCTV inspection for the past 10 years. He has also adopted a new technology for trenchless laying of gravity pipes and started undertaking underground excavation contracts. The technology allows the company to carry out maintenance activity for lines where human entry is not possible. The industry experience and investment in new technology have helped to deliver quality service to customers, with which a sound relationship has been developed over the past 11 years Based in Delhi and promoted by Mr Inderjeet Singh in 2007, Rubicon undertakes service contracts for drain maintenance; inspection of storm water drains/sewer lines through CCTV, trenchless laying of gravity pipes, and underground earthwork. The promoter has been in a similar business since 1997 through a proprietorship firm, Rubicon Inspection Systems, which was reconstituted as Rubicon in 2007. The company has a fleet of truck-mounted machines and excavators that are used to carry out the work. SA PLYWOOD: CRISIL Raises Rating on INR13.5MM Cash Loan to B ------------------------------------------------------------ CRISIL Ratings has upgraded its ratings on the bank facilities of S. A. Plywood Industry Private Limited (SAPIPL) to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13.5 CRISIL B/Stable (Upgraded from 'CRISIL D') Long Term Loan 2.16 CRISIL B/Stable (Upgraded from 'CRISIL D') Proposed Cash Credit Limit 1.5 CRISIL B/Stable (Upgraded from 'CRISIL D') Proposed Fund- Based Bank Limits 1.59 CRISIL B/Stable (Upgraded from 'CRISIL D') Proposed Non Fund based limits .25 CRISIL A4 (Upgraded from 'CRISIL D') The rating had been downgraded on October 10, 2017, due to delay in servicing of the term loan. The upgrade reflects regularisation of the term loan repayment. The company has met all its repayment obligations till date and has a track record of four months of timely debt servicing. The ratings also reflect a modest scale, and working capital intensive nature, of operations. These rating weaknesses are partially offset by the extensive experience of the promoters in the plywood industry. Key Rating Drivers & Detailed Description Weaknesses * Working capital-intensive operations: Sizeable gross current assets (333 days as on March 31, 2017) continue to keep working capital under pressure. * Modest scale of operations amid intense competition: Intense competition in the plywood industry constrains scalability, and led to modest revenue of around INR25 crore in fiscal 2017. Strength: * Extensive industry experience of the promoters: The promoters have an experience of more than 35 years in the plywood industry. This has helped them to gain good insight into the industry and establish a market position in West Bengal, Bihar, and Odisha. There is also a marginal presence in Andhra Pradesh and Rajasthan. Products are marketed under the brands Globe, Glider, and Grand, which are widely known, especially in eastern India. The company has a network of around 200 dealers across various states. Outlook: Stable CRISIL believes SAPIPL will continue to benefit from the extensive industry experience of the promoters. The outlook may be revised to 'Positive' in case of substantial and sustained increase in operating income and cash accrual, along with improved working capital management. The outlook may be revised to 'Negative' if a sharp decline in revenue and cash accrual, large, debt-funded capital expenditure, or a stretched working capital cycle weakens the financial risk profile. SAPIPL, formed in 1979 as a partnership concern by Mr Arun Saha and Mr Salil Shah, was reconstituted as a private limited company in 2009. The company manufactures plywood, block boards, and flush doors at its facility in Mathabhanga in Coochbehar, West Bengal. SAKALDEEP COLD: CRISIL Assigns D Rating to INR3.75MM Term Loan -------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL D/CRISIL D' rating to the long-term bank facility of Sakaldeep Cold Storage Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital Loan 1.65 CRISIL D (Assigned) Overdraft .20 CRISIL D (Assigned) Term Loan 3.75 CRISIL D (Assigned) The rating continues to reflect the weak liquidity profile. This rating weakness is partially offset by extensive experience of the promoters. Key Rating Drivers & Detailed Description Weakness * Weak liquidity: The company has stretched liquidity marked by low cash accrual vis-a-vis debt repayment obligation and hence the delay in servicing term debt. Strengths * Longstanding presence of the promoters and their diverse business interests: The two decade-long experience of the promoters in the Bihar region, their involvement in diverse business activities and healthy relationships with customers, will support the business risk profile. Absence of any other cold storage unit in the vicinity, will also aid growth in revenue. SCSPL, which was incorporated in 2016, operates a cold storage unit (primarily for storing potatoes) at Bhojpur district of Bihar. The cold storage currently has a capacity of 7,000 quintals in two chambers. Mr Bhuneshvar Ray, Mr Rajeshwar Ray and Mr Vindeshwar Ray are the directors of the company. SHALIMAR OVERSEAS: CRISIL Assigns B Rating to INR8.54MM Loan ------------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Shalimar Overseas Private Limited (SOPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 2.25 CRISIL B/Stable (Assigned) Proposed Term Loan 8.54 CRISIL B/Stable (Assigned) Cash Credit .75 CRISIL B/Stable (Assigned) Proposed Cash Credit Limit 1.46 CRISIL B/Stable (Assigned) The rating reflects SOPL's short track record, small scale of operations, and expected average financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters and their funding support. Analytical Approach Unsecured loans of INR1.12 crore as on March 31, 2017, have been treated as neither debt nor equity since these are subordinated to bank debt and expected to remain in the business. Key Rating Drivers & Detailed Description Weaknesses: * Short track record and small scale of operations: Operations commenced in March 2017, and in the 9 months in fiscal 2018, SOPL registered revenue of INR5.7 crore. * Average financial risk profile expected in fiscal 2018: With a modest networth vis-a-vis debt levels already contracted to set up machineries and expected to be secured for working capital , gearing is expected to be average over the medium term. Accruals are expected to be matched against repayment obligations. Hence, liquidity will remain a key monitorable. Strengths: * Extensive experience of the promoters: Promoters' experience of over thirty years in the footwear industry has helped gain expertise and forge relationships with reputed customers, including well-established shoe manufacturers. Moreover, unsecured loans of INR1.12 crore were infused by the promoters as on March 31, 2017, to support business. Outlook: Stable CRISIL believes SOPL will continue to benefit from the extensive experience of its promoters and their funding support. The outlook may be revised to 'Positive' if sizeable cash accrual, ramp up in operations, and higher-than-expected operating margin or capital infusion improves financial risk profile. The outlook may be revised to 'Negative' if low cash accrual, stretch in working capital cycle, or a large debt-funded capital expenditure weakens liquidity. Incorporated in 1995, SOPL is promoted by Mr Panna Lal Baid and his sons, Mr Alok Jain and Mr Abhay Jain. It manufactures shoe uppers and has a registered office in New Delhi. SHRI RADHE: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank facilities of Shri Radhe Foods Product (SRFP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Reaffirmed) Term Loan 2 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the firm's average financial risk profile, modest scale of operations, and exposure to intense competition. These weaknesses are partially offset by its proprietor's extensive experience in the rice milling industry. Analytical Approach Unsecured loans from the proprietor, which stood at INR0.79 crore as on March 31, 2017, are treated as neither debt nor equity as the loans are likely to remain in the business over the medium term and are interest-free. Key Rating Drivers & Detailed Description Weaknesses * Average financial risk profile: As on March 31, 2017, networth was small at INR1.72 crore and gearing was high at 3.47 times. With continued large working capital debt, gearing will remain high over the medium term. * Modest scale of operations: The scale of operations has remained modest due to intense competition in the highly fragmented rice milling industry. Though the firm benefits from established relationships with customers, its operations are susceptible to intense competition. Strength * Extensive experience of the proprietor: SRFP's proprietor has experience of over 30 years and deep understanding of the dynamics of the local market, which helps anticipate price trends and calibrate purchasing and stocking decisions. Outlook: Stable CRISIL believes SRFP will continue to benefit from its proprietor's extensive industry experience and its established relationships with customers. The outlook may be revised to 'Positive' if there is a significant increase in revenue and profitability resulting in higher accrual, or an improvement in working capital management and capital structure. The outlook may be revised to 'Negative' if stretch in working capital cycle weakens liquidity or if sizeable debt-funded capital expenditure constrains financial risk profile. Set up in 2015, and based in Gondia (Maharashtra), SRFP is a proprietorship firm of Mr Gopal Agrawal. It processes paddy into non-basmati rice, and has installed milling and sorting capacity of 8 tonne per hour (tph). SHRI SIDDHBALI: ICRA Reaffirms B Rating on INR5.81cr Loan --------------------------------------------------------- ICRA Ratings has reaffirmed the long-term rating of [ICRA]B to the INR6.00-crore fund-based and proposed limits of Shri Siddhbali Agro Industries. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 5.81 [ICRA]B (Stable); Reaffirmed Unallocated (Proposed Limits) 0.19 [ICRA]B(Stable); Reaffirmed Rationale: The rating reaffirmation factors in slight increase in scale of operations as well as operating margins in FY 2017.However, these factors have been accompanied with deterioration in working capital intensity and increased DEBT/OPBDITA levels. The rating continues to factor in competitive seeds industry with both production and sales exposed to ago climatic conditions and its seasonal nature of the business, which is highly dependent on wheat and dhaincha seeds. ICRA also continues to take note of the firm's high gearing level owing to low net worth, which has however improved in FY2017. ICRA also continues to consider the firm's partnership constitution, which exposes it to risks of capital withdrawal, dissolution etc. The rating, however, continues to draw comfort from the experience of the promoters in the trading and processing of seeds. Going forward, the firm's ability to increase its scale of operations in a profitable manner, improve the gearing level, maintain optimal working capital intensity, and diversify its product portfolio will be the key rating sensitivity. Outlook: Stable ICRA believes that SSAI will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is significant increase in the company's revenues and profitability margins, with sustained improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in the company's revenues or profitability margins or weakening of its financial risk. Key rating drivers: Credit strengths Extensive experience of the partners of more than a decade in the seed industry: SSAI was established in 2015 and is involved in the grading and processing of wheat and dhaincha seeds. The promoters have vast experience in seeds processing business. The Agrawal family has 2 other units of seed processing in this region. This helps SSAI to leverage on the existing relationship. Credit challenges Seasonal nature of business and presence in a highly competitive and fragmented market: Operations of the firm depend on the market condition such as crop harvesting, demand for seeds and finished products, prices of seeds in international market, government support and labour availability among others. The firm is also exposed to fragmented nature of business with presence of numerous organised and unorganised players. Risk in partnership constitution: The firm has a partnership constitution, which exposes these to risks of capital withdrawal, dissolution etc. SSAI was established in 2015 as a partnership firm. It grades and processes wheat and paddy seeds in its facility in Kashipur, which has an installed capacity of 2 tonnes per hour. The company is managed by Mr. Rahul Agarwal. SSAI reported a net profit of INR0.01 crore on an OI of INR6.51 crore in FY2017 compared with a net profit of INR0.01 crore on an OI of INR6.37 crore in the previous year. SIKKIM ORGANICS: CRISIL Removes B+ Rating from 'Not Cooperating' ---------------------------------------------------------------- Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of Sikkim Organics (SO) to 'CRISIL B+/Stable/CRISIL A4/Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of SO from 'CRISIL B+/Stable/CRISIL A4/Issuer Not Cooperating' to 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3.09 CRISIL A4 (Migrated from 'CRISIL A4' Issuer Not Cooperating) Cash Credit 8.00 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable' Issuer Not Cooperating) Proposed Long Term Bank Loan Facility 4 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable' Issuer Not Cooperating) CRISIL's ratings on the bank facilities of SO continue to reflect its working-capital-intensive operations, and exposure to volatile raw material prices and cyclicality in the end-user industry. The rating also take into consideration its weak financial risk profile. These weaknesses are partially offset by the extensive experience of promoter in the chemical-blending industry. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: Financial risk profile is weak marked by modest networth of INR2.54 crore as on 31st March, 2017 mainly due to continuous drawings by partners. Gearing has been high at 6.87 times as on 31st march, 2017 against 6.95 in last year. Debt coverage metrics has been modest marked by interest coverage of 1.5 times and net cash accruals to adjusted debt of - 0.01 time for financial year 2017. *Working-capital-intensive operations: Operations are likely to remain working capital intensive. Gross current assets, debtors and inventory were of 202, 66 and 36 days, respectively, as on March 31, 2017. Non-availability of certain raw materials in some months of the year will continue to necessitate stocking of inventory. * Volatility in raw materials prices and cyclicality in the end- user industry: Volatility in the prices of organic chemicals such as condensate, toluene, benzene, and mineral turpentine oil, and cyclicality in the end-user industry may continue to constrain revenue and profitability. Strength *Promoter's experience: Promoter, Mr Sunil Jaiswal, has experience of over a decade in blending organic and inorganic chemicals, mainly water soluble condensates. Prior to setting up SO in 2005, he traded in chemicals in Assam. Benefits from his experience and healthy relationships with suppliers and customers should continue to support the business. Outlook: Stable SOCRISIL believes SO will continue to benefit from its promoter's extensive experience. The outlook may be revised to 'Positive' if ramp-up in scale of operations and profitability, or improvement in capital structure and working capital cycle strengthens financial risk profile. Conversely, the outlook may be revised to 'Negative' if liquidity weakens, most likely because of stretch in working capital cycle or any large debt-funded capital expenditure. Set up in 2005 by Mr Sunil Jaiswal, SO blends various organic and inorganic chemicals, mainly condensate, toluene, benzene, and mineral turpentine oil. The blending facility is in Manpur (Sikkim). SNJ LABS: ICRA Assigns B+ Rating to INR9.68cr Term Loan ------------------------------------------------------- ICRA Ratings has assigned the long-term rating of [ICRA]B+ to the INR10.18 crore fund-based facilities of SNJ Labs Private Limited. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-CSLPS Limit 0.50 [ICRA]B+ (Stable); Assigned Fund-based-Term Loan 9.68 [ICRA]B+ (Stable); Assigned Rationale The assigned rating is constrained by company's relatively small scale of operations, leveraged capital structure, weak debt coverage indicators and high working capital intensity. The rating is further constrained by company's dependence currently on a single product-iron sucrose; although diversification into higher value added products is expected to support the growth in scale and profit margins going forward. Although, The ongoing capital expenditure will further leverage the balance sheet in near to medium term and expose the company to risks relating to project completion and subsequent ramp up. The rating, however, positively factors in the experience of the promoters in the pharmaceutical industry through their engagement with its associate concern, Endoc Lifecare Private Limited, engaged in manufacturing of medicines and established business network, which ensures repeat orders. Outlook: Stable ICRA believes SNJ Labs Private Limited will continue to benefit from the extensive experience of its promoters in pharamaceuticals industry. The outlook may be revised to Positive in case of scaling up of operations while improving the profit margins, generation of adequate cash accruals and thereby improvement in capital structure and debt protection metrics. The outlook may be revised to Negative in case of any substantial delays in project commencement and lower than expected growth in scale coupled with further deterioration in profit margins leading to lower than expected cash accruals or if a stretch in the working capital cycle weakens liquidity. Key rating drivers Credit strengths Experience of the promoters in the pharmaceutical industry: SNJ's promoters have extensive experience in the pharmaceutical industry through their associate concern - Endoc Lifecare Private Limited, engaged in manufacturing of medicines. Established relationships with customers ensure repeat orders: The company benefits in terms of established customer base of associate concern - Endoc lifecare Private Limited, which ensures repeat orders. In addition, SNJ has been diversifying its customer profile by adding new clients. Credit challenges Average financial risk profile: The company's operations remained small, with an operating income of INR5.19 crore in FY2017. The capital structure remained highly leveraged with a gearing of 3.2 times as on March 31, 2017. Moreover, the capital structure is likely to remain stretched, given the debt funded capex and impending debt repayment obligation. Low profitability and high debt level resulted in weak debt protection metrics with TD/OPBITDA of 3.97 times and NCA/TD of 17% as on March 31, 2017 Further, the working capital intensity remained high as reflected by NWC/OI at 36% in FY2017, mainly due to high inventory holding and delay in payment receipt from its customers. Risks associated with stabilisation and successful scale up of operations: With the expansion project yet to commence (expected from July 2018), the company remains exposed to the risks associated with stabilisation and successful scale-up of operations, as per expected parameters. Moreover, the debt repayments, coupled with the gestation period, are likely to keep the credit profile constrained over the medium term. Timely commissioning of operations, without any significant cost over- runs, would remain a key rating sensitivity. High product concentration; although diversification expected with launch of five new products: The product concentration remained high with a single product - iron sucrose - which accounted for 100% of SNJ's revenues during the last two years. However, diversification is expected with the launch of five new products namely Calcium salt of A-Keto Valine, Calcium salt of A- Keto Isoleucine, Calcium salt of A-Keto Leucine, Calcium Salt of A-Keto Methionine and Calcium salt of A-Keto Phenylalanine in FY2019. Incorporated in 2013, SNJ Labs Private Limited is engaged in manufacturing an Active Pharmaceutical Ingredient (API), namely iron sucrose. The company is Good Manufacturing Practice (GMP)- certified with manufacturing facility located in Rajkot, Gujarat. It is promoted by the Sorathiya family, which has experience in pharmaceutical business though associate concerns, namely Endoc Lifecare Pvt. Ltd. and Nira Life Sciences Pvt. Ltd. In FY2017, the company reported a profit after tax of INR0.2 crore on an operating income of INR5.2 crore, over a profit after tax of INR0.1 crore on an operating income of INR3.6 crore in FY2016. SWASTIK POWER: ICRA Assigns D Rating to INR38cr Loan ---------------------------------------------------- ICRA Ratings has assigned a long-term rating of [ICRA]D to the INR38.00-crore term loan of Swastik Power & Mineral Resources Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 38.00 [ICRA]D; Assigned Rationale The assigned rating primarily takes into account the continuing delays in servicing of debt obligations by the company on account of its stretched liquidity position, leading to overdue of principal and interest on term loans. The rating is further constrained by the closure of operations at the company since FY2015, and weak financial risk profile, characterised by cash losses incurred over the past three years and depressed level of coverage indicators. The rating, however, favourably factors in the experience of the management in the coal washery and coal- trading business. Key rating drivers Credit strengths Experience of the management in coal washery and coal-trading business: The company primarily deals in coal washery and coal- trading business. The promoters of the company are associated with this sector for more than two decades. Credit challenges Continuing delays in timely servicing of debt obligations: Absence of sufficient cash flow from business led to an unsatisfactory debt-servicing track record by SPMRPL in the past. Closure of operations since FY2015: The entire operations of the company have remained closed since FY2015 due to unfavourable market conditions. Weak financial risk profile: The company has incurred cash losses over the past three years since there was no operations. Consequently, the coverage indicators have remained adverse during the same period. Incorporated in 2004, SPMRPL is involved in the business of coal washery and coal trading. The company has a wet coal washery with a capacity of 0.9 MTPA of refined coal. Besides, the company also has a 25-MW coal-reject based power plant. The manufacturing facilities of the company are located in Korba, Chhattisgarh. However, there have been no operations at the company since FY2015. TDI INFRATECH: CRISIL Reaffirms B- Rating on INR164.5MM Loan ------------------------------------------------------------ CRISIL Ratings has reaffirmed its ratings on the bank facilities of TDI Infratech Ltd (TDI) at 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Overdraft 25 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility .5 CRISIL B-/Stable (Reaffirmed) Term Loan 164.5 CRISIL B-/Stable (Reaffirmed) The ratings continue to reflect the company's weak financial risk profile, especially liquidity, because of large debt-funding of ongoing projects and lower realisation of customer advances; and vulnerability to inherent risks and cyclical demand in the real estate sector. These weaknesses are partially offset by promoters' extensive experience and funding support. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: Liquidity is stretched due to lower customer advances and high dependence on external debt. The company has undertaken two township projects in Mohali (Punjab; TDI City I and TDI City II) and one in Panipat (Haryana). In TDI City I, customer payment of INR610 crore is due while in TDI City II, it is yet to receive around INR130 crore. Customer payment of around INR850 crore (as on December 31, 2017) is due in the Panipat project. With large cost to be incurred to fund new project, liquidity will remain constrained; and timely inflow of customer advances and loan disbursement will remain rating sensitivity factors. * Susceptibility to cyclicality in the real estate sector: Execution of real estate projects is affected by multiple property laws and government regulations. Strengths * Extensive experience and funding support of promoters: The company is a part of the TDI group established in 1975. Promoters have been in construction and real estate development for more than four decades, leading to a strong brand. Promoters have also infused need-based funds. Networth was INR183 crore as on March 31, 2017. Outlook: Stable CRISIL believes TDI will continue to benefit over the medium term from promoters' extensive experience and funding support. The outlook may be revised to 'Positive' if sizeable customer advances lead to better cash inflow, or significant fund infusion eases pressure on liquidity. The outlook may be revised to 'Negative' if liquidity weakens further because of lower or delayed receipt of customer advances or simultaneous and aggressive launch of new projects. Incorporated in 1999 and promoted by members of Taneja family, TDI undertakes real estate development in Punjab and Haryana. The company is currently developing two townships in Mohali and one in Panipat; and is expected to launch a new project in Sonipat, Haryana. VIMAL MICRONS: ICRA Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- ICRA Ratings has moved the long-term rating and the short-term rating for the bank facilities of Vimal Microns Limited (VML) 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-Term 0.33 [ICRA]B+ (Stable) ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund-based-Cash 25.60 [ICRA]B+ (Stable) ISSUER NOT Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' Non-fund Based- 1.25 [ICRA]A4 ISSUER NOT COOPERATING; Bank Guarantee Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity 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. The current rating action has been taken by ICRA on the basis of the best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating, as the rating may not adequately reflect the credit-risk profile of the entity. Policy in respect of non-cooperation by the rated entity About the company: Vimal Microns Limited (VML), established in 1993 by Mr. Ganpatbhai K. Patel and associates, is engaged in manufacturing micronised mineral powder used as fillers in various paint and polymer industries. The company's manufacturing setup is located in the Mehsana district of Gujarat. Its production capacity is 88,800 TPA. VIVEKANANDA SEEDS: ICRA Reaffirms B Rating on INR8.40cr Loan ------------------------------------------------------------ ICRA Ratings has reaffirmed the long-term rating of [ICRA]B to the INR8.40-crore fund-based limits of Vivekananda Seeds. ICRA has also reaffirmed long/short term rating of [ICRA]B/[ICRA]A4 to the INR1.10-crore unallocated limits of VS. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash Credit 8.40 [ICRA]B (Stable); reaffirmed Unallocated Limits 1.10 [ICRA]B (Stable)/[ICRA]A4; Reaffirmed Rationale The ratings take into account the small scale of VS' operations in a highly fragmented and competitive seeds industry with both production and sales exposed to agro-climatic and regulatory risk. The ratings also take into account low capacity utilization of the plant owing to seasonal nature of the business, which is highly dependent on a single product i.e. paddy seeds. The rating considers weak capital structure, low profitability, and weak coverage indicators during FY2017. Moreover, the firm has sizeable term loan repayments with lower accruals, leading to high reliance on partners capital and capital subsidy for timely repayments in the near to medium term. The ratings, however, favourably take into account more than two decades of experience the partners in the seeds industry and well-established relationships of the firm with farmers, dealers and distributors. Outlook: Stable ICRA believes VS will continue to benefit from the extensive experience of its partners. The outlook may be revised to 'Positive' if substantial growth in revenue, liquidity, and profitability, strengthens the financial risk profile. The outlook may be revised to 'Negative' if capital infusion by partners is lower than projected, or lower-than-expected cash accrual, or decline in profitability leads to stretch in liquidity position. Key rating drivers Credit strengths Experience of promoters in the paddy seeds industry: The partners have over two decades of experience in paddy seeds industry and maintain established relationship with farmers, dealers and distributors resulting in repeated orders every year. Credit weaknesses Small scale of operations of the firm: The firm's scale of operations is small with revenues of INR33.21 crore during FY2017 limits its financial flexibility. Low capacity utilization of the plant: The capacity utilisation of the plant has been low on account of seasonal nature of operations, long production cycle and high dependency on single product i.e. paddy seeds. The capacity utilization further decreased over the past two years from ~32% in FY2015 to ~30% in FY2017, owing to decline in demand in the market on account of increase in realization of paddy seeds in the market. Weak capital structure of the firm: The capital structure of the firm remained weak with lower net profit of INR0.12 crore during FY2017, weak coverage indicators as reflected by interest coverage of 1.77 times, and Total debt to operating profit at 5.15 times as on March 31, 2017. With lower accruals, the firm will be highly dependent on partners' capital infusion to meet its repayments in the near to medium term. High exposure to agro-climatic risk: Paddy seed's production, being an agro-commodity, is highly exposed to agro-climatic risks and remains largely dependent on area under cultivation, demand and market price which may result in shift in cultivation by farmers to higher profitable products. Vivekananda Seeds is a partnership firm incorporated in the year 1992 by Mr. S. Janardhana Reddy and his family. The firm is engaged in producing, processing, and marketing of paddy seeds and has processing plant in Anaparthi, East Godavari Dist. in A.P., Sambalpur (Orissa) and Warangal (Telangana). The firm increased its processing capacity from 6 ton/hour to 10 ton/hour and deals with only paddy seeds. VS has a group firm called 'Vivekananda Seeds and Farms' in Orissa, a proprietary firm owned by Mr. S. Janardhana Reddy which is only involved in processing of seeds. WINSOME DIAMONDS: NCLT Orders Commencement of Insolvency Process ---------------------------------------------------------------- The Hindu BusinessLine reports that more trouble seems to be brewing in the jewellery industry with the National Company Law Tribunal (NCLT) ordering the commencement of corporate insolvency resolution proceedings against Winsome Diamonds and Jewellery Ltd. As per a Debt Recovery Tribunal order of December 2016, the total amount payable by the company to creditors is about INR4,700 crore. This comes even as the jewellery industry is reeling under the fallout of the scam involving Nirav Modi and Mehul Choksi, the promoter of Gitanjali Gems, BusinessLine discloses. According to BusinessLine, the corporate insolvency resolution process commenced for Winsome Diamonds (formerly Su-Raj Diamonds and Jewellery Ltd) on February 13 and creditors were asked to submit their claims by February 27. Under CIRP, the insolvency professional (IP), who is appointed by the NCLT with the consent of creditors, puts together a resolution plan with the help of a committee of creditors to revive an ailing company within the maximum stipulated period of 255 days. If this effort fails, the company will have to be liquidated. As per the latest limited review report submitted by Nautam R Vakil & Co, Chartered Accountants, to the Board of Directors of Winsome Diamonds and Jewellery, due to defaults, the company's accounts have been classified as non-performing assets by banks, BusinessLine discloses. BusinessLine says the report stated that the DRT had passed an order in December 2016 determining the total amount payable at INR4,687 crore along with simple interest at the rate of 14 per cent from the date of original application with the Tribunal till the date of realisation of dues. According to BusinessLine, the report said Winsome Diamonds and Jewellery received summons from the Serious Fraud Investigation Office (SFIO) in July 2016 and "investigation under Section 212 of the Companies Act in August 2016". In respect of trade receivables amounting to INR5,529 crore, the auditors said they have not received any confirmation from the company's overseas parties. BusinessLine adds that the company has filed a suit against its defaulting overseas customers for non-payment of bills, at Sharjah Federal Court (UAE). The Court, as per the report, has appointed an expert to look into the affairs of the companies based in Dubai/ Sharjah. The auditor observed that the Court has confirmed the debts payable to the company and ordered the overseas customers to pay along with interest at the rate of 5 per cent per annum. BusinessLine relates that in view of these Court orders pending legal proceedings, the auditors said: "We are unable to comment on the time frame of the realisability of the debts . . ." ========= J A P A N ========= JFE HOLDINGS: Moody's Rates JPY300BB Subordinated Loan Ba1 ---------------------------------------------------------- Moody's Japan K.K. has assigned a Ba1 rating to the subordinated loan to be issued by JFE Holdings, Inc. (JFE, senior unsecured debt Baa2 stable). The rating outlook is stable. The JPY300 billion subordinated loan to be subscribed on March 19, 2018, will have a maturity of sixty years. The subordinated loan rated is: - Total JPY300 billion subordinated loan, due 2078 RATINGS RATIONALE The Ba1 rating is positioned two notches below JFE's Baa2 senior unsecured debt rating, primarily due to the weak priority of payment that the subordinated loan will have within the company's capital structure. JFE's Baa2 senior unsecured debt rating reflects its leading market position in high-grade steel products and advanced technology. JFE's rating is also supported by its financial policies that keeps debt at manageable levels. At the same time, the rating reflects the inherent volatility of the steel market. The principal methodology used in this rating was Steel Industry (Japanese) published in October 2017. JFE Holdings, Inc., headquartered in Tokyo, is a holding company with stakes in operating subsidiaries focused on steel, engineering, and trading operations. TK HOLDINGS: Bankruptcy Exit Plan Approved ------------------------------------------ Judge Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware has approved a bankruptcy plan carving out a trust for personal injury claimants as well as a second channeling agreement allowing for future claims, the law firm Motley Rice said in a statement. Working on behalf of current and potential future personal injury and wrongful death victims of defective Takata airbags, Motley Rice LLC, one of the nation's largest plaintiffs' law firms, helped negotiate the resolutions and spoke out in favor of both plans during an approval hearing Feb. 16, 2018. The airbags, at the center of the largest automobile recall in history, have been linked to at least 22 deaths and 180 injuries worldwide. One resolution is with TK Holdings, Inc., the U.S. division of Takata, and the other with Original Equipment Manufacturer (OEM), Honda North America, Inc. The resolutions will be available to all U.S. personal injury and wrongful death victims. "Our firm has seen firsthand too many horrific, life-changing injuries as a result of these defective Takata airbags and, tragically, families who have lost loved ones," said Motley Rice co-founder Joe Rice. "Like dynamite in your car, these airbags should have never been installed in millions of vehicles. Once they were known to be deadly, they should have been more swiftly recalled, and the driving public notified. Sadly, that did not happen, so we are pleased that Judge Shannon has approved what we believe to be fair options for current and future victims of Takata airbags that provide swift resolution and allow victims to try to move on with their lives." Takata Bankruptcy: Resolution for Personal Injury and Wrongful Death Victims "The once profitable and financially sound Takata has suffered severe economic losses because of its defective airbags, filing for bankruptcy and Chapter 11 protection in June 2017. The proposed sale to Key Safety Systems left minimal compensation for victims killed or injured by Takata airbags. In an effort to protect current and future claimants, my firm found it in the best interest of these claimants to aggressively pursue efforts to fund a trust using Takata assets under the bankruptcy plan," said Rice. Plaintiffs have the option to opt out and file litigation through the tort system if they feel their claim is not fair. The estimated value of the trust is $90 million to $137 million. This amount may increase, but will not decrease. Once the trust is open, it would begin to accept claims in approximately mid- 2018. Mediator Eric D. Green would oversee claims as the Trustee, and Roger Frankel of Frankel Wyron LLP will serve as the Court appointed Future Claims Representative of TK Holdings, et al. Settlement with Honda "Because the OEMs installed these defective airbags in their vehicles, they may also be legally responsible," said Mr. Rice. "To that end, we recommended a settlement with Honda through a Channeling Injunction to protect future claimants so they will not be burdened by Honda's available defenses. Honda has the most U.S. vehicles on the road, and there have been more than 200 reported injuries or deaths involving defective Takata airbags in Honda cars to date." "Our goal is to protect current and future victims, and this settlement through a Channeling Injunction, which at this time only involves Honda, is the best option to do so," said Mr. Rice. "The settlement provides victims with security and assures future victims get similar values without concern about risks that can come to play, or excessive delays that can sometimes occur in the civil justice system and the appeals that often come after a trial verdict." Through this settlement, Honda will pay 100 percent of compensatory damages without any credit for fault placed on Takata, third parties or the victims. Honda also has agreed to pay, regardless of the age of the car or the expiration of a statute of limitations. Risks to the victim are effectively mitigated, reducing stress and allowing them to focus on their lives and injuries. For example, defenses that may be used in the tort system by an OEM, such as not acting on a recall letter or driving violations, are waived under this settlement. Additionally, the settlement values have punitive damages built in based on known, prior settlement values in other cases. As with any settlement, the plaintiff has the right to opt out and go through the tort system if they are not satisfied with the proposed value of their claim. Recalled Vehicles Millions of vehicles have been recalled for defective Takata airbags. To see if your vehicle is recalled, visit www.safercar.gov and enter your VIN. About Motley Rice LLC Motley Rice -- http://www.motleyrice.com-- is one of the nation's largest plaintiffs' litigation firms. With a tradition of representing those whose rights have been violated, Motley Rice attorneys gained recognition for their pioneering asbestos lawsuits, their work with the State Attorneys General in the landmark litigation against Big Tobacco, and their representation of 9/11 families in the ongoing lawsuit against terrorist financiers. The firm continues to handle complex litigation in numerous areas, including securities fraud; antitrust; consumer protection; mesothelioma; prescription and over-the-counter drugs; medical devices; terrorism financing and human rights; aviation and transportation disasters; and wrongful death. Motley Rice is headquartered in Mt. Pleasant, S.C., and has additional offices in Connecticut; Louisiana; Washington, D.C.; New York; Missouri; Rhode Island; and West Virginia. About TK Holdings Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. The Debtors Meunier Carlin & Curfman LLC, as special intellectual property counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the insurance policies. Sakura Kyodo Law Offices will serve as special counsel. Roger Frankel, the legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-counsel. Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 179 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. ==================== N E W Z E A L A N D ==================== NEW ZEALAND HONEY: Owes NZ$1.4MM to Creditors; Sale Looms --------------------------------------------------------- The New Zealand Herald reports that specialist manuka honey exporter New Zealand Honey Specialties - trading as the New Zealand Honey Company - owes more than NZ$1.4 million to unsecured creditors, shareholders and staff. However, negotiations are under way this week for a potential sale, receivers have confirmed. Established in 2005 and Dunedin-based, it was placed in voluntary receivership by its shareholders in mid-December and Dunedin receivers Insolvency Management have posted their first report, according to the Herald. Other than stock sold in the domestic market, no assets had been disposed of, Insolvency Management receiver Iain Nellies said on Feb. 12, the Herald relays. He confirmed negotiations were under way with a domestic buyer, which could be concluded this week, the Herald says. According to the Herald, the first report outlined assets, including domestic and United Kingdom stock, were estimated at NZ$511,615, while overall debt at November 21 was more than NZ$1.3 million. Unsecured creditors were owed NZ$809,658, shareholder advances were NZ$590,189 and employee entitlements NZ$24,054. The Herald adds that Mr. Nellies said despite the potential sale, he was unable to estimate what any shortfall might be. The UK was New Zealand Honey Company's biggest market, and it also exported to Hong Kong, Singapore, China and South Korea from its Mosgiel factory. New Zealand Honey Specialties' majority shareholder is Alpine Honey Specialties, with a 48.97 per cent stake, followed by Southern Capital, with a 45.19 per cent stake, plus seven minority shareholders of 1 per cent or less. Its directors were Duncan McKinlay, of Auckland, Chris Swann, of Dunedin, and Peter Ward, of Wanaka, who is the company chairman, the Herald discloses. ================= S I N G A P O R E ================= EMAS OFFSHORE: To Appeal Against Oslo Stock Exchange Delisting -------------------------------------------------------------- Jacqueline Woo at The Strait Times reports that the Oslo Stock Exchange has passed a resolution to delist Emas Offshore, a unit of Ezra Holdings and a dual-listed company in Singapore and Norway, with effect from April 27. This was due chiefly to the company's inability to disclose financial information within the prescribed deadlines under the Oslo Stock Exchange listing rules, Emas told the Singapore Exchange late on Feb. 19, the report relates. Offshore marine construction contractor added that it plans to make an appeal against the decision by March 5. If successful, the company will remain listed on the Oslo Stock Exchange, The Strait Times says. According to the report, Emas said that the Oslo Stock Exchange's move comes at a time when the group's restructuring exercise has made significant progress. The report relates that Emas and its wholly owned subsidiaries on Feb. 15 had successfully obtained leave from the Singapore High Court to convene their respective creditors' meeting to consider a proposed scheme of arrangement. This was with the support of the group's principal bank lenders for the restructuring plan based on a term sheet with BT Investment (BTI) Term Sheet, Emas said, the report relays. Emas in December last year had entered into a revised term sheet with BTI, a wholly owned unit of Baker Technology. In September, BTI was named as one of two investors to have pledged a combined US$50 million equity injection, the Strait Times recalls. In its announcement on Feb. 19, Emas said that its indicative restructuring proposal has obtained "initial expressions of support" from some of the largest secured creditors of the group, according to the report. "The company intends to move forward as quickly as practicable to bring its restructuring process to a successful close, in the light of this positive development," Emas said, adding it is working closely with its auditors to finalise the delayed financial information. The Strait Times relates that Emas said that the Oslo Stock Exchange's decision is not consistent with the progress already made, in particular the restructuring proposal. "The company now has a real prospect of a return to viability and the Oslo Stock Exchange's decision is detrimental to these intensive ongoing restructuring efforts and hence not in the interest of the company's shareholders," Emas, as cited by the Strait Times, said. "It is the company's belief and hope that, when all the relevant facts are put before the Oslo Stock Exchange, its decision will be reversed." Singapore-based EMAS Offshore Limited (SGX:UQ4) -- http://www.emasoffshore.com/home/-- engages in the offering of offshore support, accommodation and offshore production services to customers in the offshore oil and gas industry throughout the oilfield lifecycle, spanning exploration, development, production and decommissioning stages. It operates through two business segments: Offshore Support and Accommodation Services division, and Offshore Production Services division. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2018. 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. *** End of Transmission ***