/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180323.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, March 23, 2018, Vol. 21, No. 059 Headlines A U S T R A L I A AUSTRALIAN ABRASIVE: Second Creditors' Meeting Set for March 29 FREDRIC'S PLUMBING: Second Creditors' Meeting Set for April 3 LA TROBE 2018-1: S&P Assigns Prelim B(sf) Rating to Cl. F Notes PROFESSIONAL OUTSOURCE: 2nd Creditors' Meeting Set for March 29 SHOAL BAY: First Creditors' Meeting Set for March 29 STORM FINANCIAL: Directors Penalised For Breach of Duties VIGILANT TRAFFIC: First Creditors' Meeting Set for March 29 C H I N A CHINA SCE: S&P Hikes ICR to 'B+' on Leverage Improvement XUZHOU ECONOMIC: Fitch Gives BB+(EXP)/RWN Rating to New USD Notes H O N G K O N G NOBLE GROUP: Expects Successful Restructuring NOBLE GROUP: Founder Richard Elman Resigns as Non-Exec Director NOBLE GROUP: S&P Cuts ICR to D on Missed Payments for 2018 Notes I N D I A AJAY HIRALAL: Ind-Ra Assigns BB Issuer Rating, Outlook Stable AJIT KUMAR: ICRA Keeps B Rating in Not Cooperating Category DHEEPTI EXPORTS: Ind-Ra Corrects January 22 Rating Release EDU SMART: CARE Moves D Rating to Not Cooperating Category EDUCOMP INFRASTRUCTURE: CARE Moves C Rating to Not Cooperating EDUCOMP SOLUTIONS: CARE Moves D Rating to Not Cooperating Cat. GG EXPORTS: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable GRIS CERAMIC: ICRA Withdraws B+ Rating on INR3cr Cash Loan GOYAL AUTOMOBILES: ICRA Keeps B+ Rating in Not Cooperating GOYAL MOTOCORP: ICRA Keeps B Rating in Not Cooperating Category HIMALAYAN ROAD: Ind-Ra Affirms BB Issuer Rating, Outlook Stable JAIPRAKASH ASSOCIATES: Asked to Deposit INR200 crore by May 10 JAY LAXMI: ICRA Keeps B+ Rating in Not Cooperating Category KAPSONS INDUSTRIES: CARE Moves D Rating to Not Cooperating Cat. KENA ALLOYS: CARE Moves D Rating to Not Cooperating Category KINJAL CHEMICAL: Ind-Ra Migrates BB LT Rating to Non-Cooperating MAHADEV INDUSTRIES: ICRA Reaffirms B Rating on INR22cr Loan MODIGOLD PIPES: Ind-Ra Migrates BB- LT Rating to Non-Cooperating NARENDRA EMPORIS: ICRA Keeps B+ Rating in Not Cooperating Cat. PANTEL TECHNOLOGIES: CARE Moves D Rating to Not Cooperating PRAG DISTILLERY: CARE Moves D Rating to Not Cooperating Category PRERNA SERVICES: CARE Moves D Rating to Not Cooperating Category QUADROS MOTORS: CARE Lowers Rating on INR6.20cr LT Loan to D RAM NATH: CARE Migrates D Rating to Not Cooperating Category RUSHABH FLOUR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating SAI LEASING: CARE Assigns 'D' Rating to INR10cr LT Loan SEPAL TILES: ICRA Keeps B- Ratings in Not Cooperating Category SHALIMAR PAINTS: CARE Lowers Rating on INR113.81cr Loan to D SONA BEVERAGES: ICRA Assigns B- Rating to INR10cr Loan TIRUPATI COTTON: CARE Reaffirms B+ Rating on INR9.48cr Loan TORQUE AUTOMOTIVE: Ind-Ra Assigns BB+ LT Rating to INR380MM Loan VADSOLA CERAMIC: ICRA Keeps B Ratings in Not Cooperating Cat. VENKY HI: ICRA Keeps B+ Rating in Not Cooperating Category VIDEOCON TELECOM: CARE Reaffirms D Rating on INR2562.50cr Loan I N D O N E S I A MATAHARI PUTRA: Moody's Lowers CFR to B2 & Alters Outlook to Neg. M A L A Y S I A PRIME GLOBAL: Delays Jan. 31 Quarterly Report N E W Z E A L A N D SOLID ENERGY: Enters Final Stages of Liquidation Process S I N G A P O R E YUUZOO CORP: Cites Impossible Timeframe for Auditors to Make Call S O U T H K O R E A KUMHO TIRE: Purchase is Win-Win Partnership, Doublestar Head Says - - - - - ================= A U S T R A L I A ================= AUSTRALIAN ABRASIVE: Second Creditors' Meeting Set for March 29 --------------------------------------------------------------- A second meeting of creditors in the proceedings of Australian Abrasive Minerals Pty Ltd and Mineral Separation Plant Pty Ltd has been set for March 29, 2018, at 10:30 a.m. at the offices of KordaMentha, Level 10, 40 St Georges Terrace, in Perth, West Australia. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by March 28, 2018, at 4:00 p.m. Richard Scott Tucker, John Allan Bumbak and Rahul Goyal of KordaMentha were appointed as administrators of Australian Abrasive on Aug. 24, 2017. FREDRIC'S PLUMBING: Second Creditors' Meeting Set for April 3 ------------------------------------------------------------- A second meeting of creditors in the proceedings of Fredric's Plumbing Services Pty Ltd has been set for April 3, 2018, at 10:00 a.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, 161 Sussex Street, in Sydney, NSW. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by March 29, 2018, at 4:00 p.m. Ozem Kassem and Jason Tang of Cor Cordis were appointed as administrators of Fredric's Plumbing on March 2, 2018. LA TROBE 2018-1: S&P Assigns Prelim B(sf) Rating to Cl. F Notes --------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to eight classes of residential mortgage-backed securities (RMBS) to be issued by Perpetual Corporate Trust Ltd. as trustee for La Trobe Financial Capital Markets Trust 2018-1. La Trobe Financial Capital Markets Trust 2018-1 is a securitization of nonconforming and prime residential mortgages originated by La Trobe Financial Services Pty Ltd. The preliminary ratings reflect: -- S&P views of the credit risk of the underlying collateral portfolio, including its view that the credit support is sufficient to withstand the stresses it applies. The credit support for the rated notes comprises note subordination. -- The availability of a retention amount, amortization amount, and yield reserve, which will all be funded by excess spread, but at various stages of the transaction's term. They will have separate functions and timeframes, including reducing the balance of senior notes, reducing the balance of the most subordinated notes, and subject to conditions, pay senior expenses and any interest shortfalls on the class A1S, class A1L, and class A2 notes. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.5% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest. -- A condition to maintain a minimum margin on the assets. PRELIMINARY RATINGS ASSIGNED Class Rating Amount (mil. A$) A1S AAA (sf) 100.00 A1L AAA (sf) 250.00 A2 AAA (sf) 89.00 B AA (sf) 20.00 C A (sf) 15.50 D BBB (sf) 11.00 E BB (sf) 6.50 F B (sf) 4.50 Equity NR 3.50 NR--Not rated. PROFESSIONAL OUTSOURCE: 2nd Creditors' Meeting Set for March 29 --------------------------------------------------------------- A second meeting of creditors in the proceedings of Professional Outsource Group Pty Ltd has been set for March 29, 2018, at 11:00 a.m. at the offices of SV Partners, SV House, 138 Mary Street, in Brisbane, Queensland. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by March 28, 2018, at 4:00 p.m. David Michael Stimpson of SV Partners was appointed as administrator of Professional Outsource Group on Feb. 22, 2018. SHOAL BAY: First Creditors' Meeting Set for March 29 ---------------------------------------------------- A first meeting of the creditors in the proceedings of: -- SHOAL BAY BEACH NO.1 PTY. LTD.; -- VERITAS PROPERTY GROUP PTY LTD; -- West Ryde Developments Residential Pty Ltd; and -- WR Residential Constructions Pty Ltd; will be held at the offices of HoskingHurst Pty ltd, Level 3 65 York Street, in Sydney, NSW, on March 29, 2018, at 11:00 a.m. David Anthony Hurst of HoskingHurst was appointed as administrator of SHOAL BAY and subsidiaries on March 19, 2018. STORM FINANCIAL: Directors Penalised For Breach of Duties --------------------------------------------------------- The Federal Court has imposed civil penalties of AUD70,000 each on the directors of Storm Financial, Emmanuel and Julie Cassimatis, who were previously found by the Court to have breached their duties as directors. They were also disqualified from managing corporations for 7 years. This draws to a close ASIC's Storm-related litigation, which has included investors receiving compensation in relation to losses suffered on investments made through Storm. Storm Financial operated a system of advice, created by the Cassimatises, in which 'Stormified' clients were advised to invest substantial amounts in index funds, using 'double gearing' (Storm Model). Clients would usually take out a home loan and a margin loan in order to purchase units in index funds, create a 'cash dam' and pay Storm's fees. Clients were then encouraged to take 'step' investments over time. In late 2008 and early 2009, many of Storm's clients were in negative equity positions, sustaining significant losses. In the original judgment, Justice Edelman had found that a sample of investors who were advised to invest in accordance with the Storm Model, received advice that was inappropriate to their personal circumstances. Each of those investors were over 50 years old, were retired or approaching and planning for retirement, had little or limited income, few assets and had little or no prospect of rebuilding their financial position in the event of suffering significant loss. Justice Edelman found that the Cassimatises had each engaged in a course of conduct, which amounted to one breach of the requirement that they exercise their powers as directors with the degree of care and diligence that a reasonable person would have exercised in that situation. The maximum penalty for a breach of directors' duties (s180) is AUD200,000. ASIC commenced this civil penalty proceeding against the Cassimatises in late 2010. The trial took place between May 30 and June 30, 2016. In August 2016, Edelman J handed down judgment in relation to liability against the Cassimatises, finding that they had each breached their duties as directors. In September 2012, ASIC entered into a settlement agreement with the Commonwealth Bank of Australia to make available up to AUD136 million as compensation for losses suffered on investments made through Storm. The AUD136 million was in addition to payments of approximately AUD132 million, and other benefits that CBA had already provided to Storm investors under its Resolution Scheme. In May 2013, ASIC secured AUD1.1 million in compensation on behalf of two former Storm investors, Barry and Deanna Doyle. In May 2013, ASIC intervened in the application for Court approval of the settlement of the related class action brought against Macquarie Bank in respect of Storm as it had concerns about the fairness of the settlement arrangements. On Aug. 12, 2013, the Full Federal Court agreed that the distribution of the settlement sum was not fair and reasonable to all group members (refer: http://storm.asic.gov.au/settlements/richards-settlement/). Under a revised settlement, Macquarie Bank agreed to pay AUD82.5 million by way of compensation and costs. In September 2014, ASIC entered into a settlement agreement with the Bank of Queensland Limited to pay approximately AUD17 million as compensation for losses suffered on investments made through Storm. About Storm Financial Storm Financial Limited -- http://www.stormfinancial.com.au/-- operated in the Australian wealth management industry. The company managed over one trillion dollars in investment fund assets for over nine million investors, distributed through investment administration providers and financial adviser. The funds were invested through different investment products and structures, including superannuation, non-superannuation managed funds and life insurance products. Non-superannuation managed funds, which form the majority of Storm's products, total approximately 26.5% of total investment fund assets in Australia, as of June 30, 2007. In 2009, Storm Financial Ltd. appointed Worrells Solvency & Forensic Accountants as voluntary administrators after the Commonwealth Bank of Australia demanded debt repayment of around AUD20 million. Storm later closed its business and fired all of its 115 staff. The closure, the company's administrators said, was due to the significant reduction in Storm's income resulting in trading losses being incurred "at a rate which the company could no longer absorb." The Commonwealth Bank of Australia, Storm's largest creditor, lodged a AUD27.09 million debt claim at a first meeting of the company's creditors on Jan. 20, 2010. The group's remaining creditors are owed AUD51 million, plus a provision for dividends of AUD10 million. In March 2009, the Australian Securities and Investments Commission won its bid to liquidate Storm Financial after the Federal Court ruled that the Company be wound up. Federal court Justice John Logan appointed Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants as liquidators for the Company. VIGILANT TRAFFIC: First Creditors' Meeting Set for March 29 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Vigilant Traffic Management Pty Ltd will be held at the offices of WA Insolvency Solutions, Level 49, 108 St Georges Terrace, in Perth, West Australia, on March 29, 2018, at 2:30 p.m. Jimmy Trpcevski and David Ashley Norman Hurt of WA Insolvency Solutions were appointed as administrators of Vigilant Traffic on March 20, 2018. ========= C H I N A ========= CHINA SCE: S&P Hikes ICR to 'B+' on Leverage Improvement -------------------------------------------------------- S&P Global Ratings raised its long-term issuer credit rating on China SCE Property Holdings Ltd. (CSCE) to 'B+' from 'B'. The outlook is stable. At the same time, S&P raised its long-term issue rating on CSCE's outstanding senior unsecured notes to 'B' from 'B-'. CSCE is a China-based property developer. S&P said, "We raised the ratings because we expect CSCE's leverage levels in 2018 to build on the improvement last year, given continuing top-line growth and good margins. The upgrade also reflects our view that the company will continue to strengthen its business position through increased scale and better geographical diversity." CSCE's higher margins and slightly lower debt exceeded our expectations for 2017. The company's debt-to-EBITDA ratio fell significantly to 4.8x, from 6.5x in 2016. The gross margin increased to 34.1% (2016: 25%) and revenue rose by 29%. S&P said, "In our view, CSCE can maintain its financial position over the next two years, driven by continued good sales growth and robust margins. We also expect CSCE to maintain a disciplined approach toward its expansion plans. As a result, we estimate the company's debt-to-EBITDA ratio will remain 5.0x-5.5x for the next two years. "We anticipate that CSCE's contracted sales will increase steadily to Chinese renminbi (RMB) 45 billion-RMB50 billion in 2018. This will be supported by large salable resources of more than RMB80 billion, 64% of which are located in first- and second-tier cities. The company has maintained a good sell-through rate of above 60% for the past two years. "We expect CSCE's scale to progressively increase, following a rise in annual contracted sales to RMB33.2 billion in 2017 from RMB14.5 billion in 2015. The company's geographic mix has expanded to reach 23 cities, with a balanced spread between tier-one, tier- two, and tier-three cities. "CSCE will maintain a competitive gross margin for the next two years, in our view. The gross margin has remained 25%-35% for the past three years. The company saw strong price growth in some of its key cities, such as Shanghai, Beijing, Tianjin, and Nanjing in 2015 and 2016. We estimate the company's unrecognized sales as of end 2017 have a gross margin of 28%-30%. In addition, CSCE has a large land bank of 14.8 million square meters (sqm) and low average costs of RMB3,611 per sqm. These benefits should temper the margin pressure stemming from price restrictions and rising land costs in China. "We expect CSCE to continue to incur high capital expenditure on land and construction to support its growth strategy. The company has an aggressive contracted sales target of RMB50 billion in 2018 and mid-term target of RMB100 billion in 2020. That said, we believe CSCE will adopt a flexible strategy in which land acquisitions are linked to market conditions and the company's sales performance. We estimate that CSCE will increase its land payments to RMB22 billion-RMB23 billion in 2018, representing 60%- 65% of the estimated cash receipts from sales in the period. "We believe that the Chinese government's stringent measures to cool the property market and tighten land supply in higher-tier cities have reshaped CSCE's expansion strategy. The company has a target margin in the mid-20% range. For the company to achieve this target, we believe it will look for opportunities in other second-tier cities and satellite cities of higher-tier cities. To minimize execution risk and an oversized investment burden, CSCE will likely seek to expand through mergers and acquisitions or joint ventures. In 2017, 29 out of the 38 land parcels that CSCE acquired were through these methods. "The stable outlook for the next 12 months reflects our expectation that CSCE will manage its pace of expansion, while maintaining steady sales growth. We also expect the company's good sales growth to offset likely margin moderation. "We may lower the rating if CSCE's leverage rises materially above our expectation. This could happen if the company becomes more aggressive toward land acquisitions while sales fall below our expectation, or if its profitability significantly declines. An indication of this could be the ratio of debt to EBITDA being materially above 5x-5.5x. "We expect the rating upside to be limited for the next 12 months. However, we may raise the rating if CSCE's sales and land bank diversity significantly improves, while the company maintains its deleveraging trend, good sales growth and stable margins." XUZHOU ECONOMIC: Fitch Gives BB+(EXP)/RWN Rating to New USD Notes ----------------------------------------------------------------- Fitch Ratings has assigned Xuzhou Economic and Technology Development Zone State-Owned Assets Management Co., Ltd.'s (XETZ, BB+/Rating Watch Negative (RWN)) proposed senior unsecured US dollar notes an expected rating of 'BB+(EXP)' and put the proposed notes on RWN. The notes will be issued by Jinshine International Co., Ltd., an indirectly and wholly owned subsidiary of XETZ. XETZ will provide an unconditional and irrevocable guarantee for the proposed notes, which will constitute its direct, general, unsubordinated, unconditional and unsecured obligations and shall, at all times, rank pari passu among themselves and at least pari passu with all other present and future unsecured obligations of XETZ. The proceeds will be used for general corporate purposes. The final rating on the proposed notes is contingent upon the receipt of final documents conforming to information already received. KEY RATING DRIVERS Publication of Updated Criteria: Fitch Ratings placed XETZ's Long- Term Foreign- and Local-Currency Issuer Default Ratings on RWN following the publication of Exposure Draft: Government Related Entities Criteria on December 20, 2017. The updated rating criteria was released on February 7 2018. The bonds have also been put on RWN, as they constitute XETZ's direct, general, unsubordinated, unconditional and unsecured obligations. Links to Xuzhou Municipality: XETZ's ratings are credit linked to Xuzhou municipality. This is reflected in its 100% state ownership, strong government oversight of its financials and the strategic importance of its operation to the municipality. These factors result in a high likelihood of extraordinary support, if needed. Therefore, XETZ is classified as a credit-linked government-related entity (GRE) under Fitch's criteria. Xuzhou's Healthy Creditworthiness: Fitch considers the budget performance of Xuzhou, as a logistic hub in eastern China, as satisfactory. The municipality has a diversified socio-economic profile and its gross regional product (GRP) ranks fifth among Jiangsu province's 13 prefectures. The province's GRP, in turn, is the second largest among all provinces in China. Xuzhou's GRP per capita of CNY66,845 in 2016 was below the Jiangsu level of CNY95,259, but higher than the national level of CNY53,890. These strengths are partially mitigated by potentially high contingent liabilities arising from Xuzhou's public-sector entities and the municipality's weak transparency. Weak Financial Profile: As a local-government financing vehicle, XETZ's financial profile in the previous five years has been characterised by large capex, negative free cash flow and high leverage. Fitch expects this to continue in the medium term. Operating revenue fell by 8% in 2016, as the company invested in projects that do not yet recognise revenue. Fitch believes the revenue drop is temporary. XETZ has also strengthened the terms and conditions of government project repurchasing, which should improve the company's liquidity. RATING SENSITIVITIES Links with Municipality: An upgrade of Fitch's credit view of Xuzhou and a stronger or more explicit support commitment from the government may trigger positive rating action on XETZ. Significant weakening of the company's strategic importance to the municipality, dilution of the municipality's shareholding or lower explicit and implicit municipal support may result in a downgrade. A downgrade may also stem from weaker government fiscal performance or increased indebtedness, leading to deterioration in its creditworthiness. Any change in XETZ's Issuer Default Ratings will result in a change to a similar extent in the rating on the proposed notes. Fitch will monitor the application of existing and new central government laws, regulations and directives that effectively prohibit or restrict support by local and regional governments to GREs, such as XETZ, and may affect the entities' ability to service their debts. Fitch interprets such initiatives as the central government's efforts to disentangle GREs from public- sector balance sheets, address indiscriminate GRE debt growth and encourage greater market discipline. Depending on the degree of certainty and the extent of the prohibitions, the agency will take rating action that could result in a widening of notching or the adoption of a bottom-up ratings approach, possibly to the extent of removing all support expectations. ================ H O N G K O N G ================ NOBLE GROUP: Expects Successful Restructuring --------------------------------------------- The Business Times reports that Noble Group noteholders who do not support its restructuring plans are likely to find it very difficult to successfully wind up the company, the commodity trader said in an exchange filing on March 22. According to the report, the company also said it will likely be able to continue as a going concern, as there are reasonable grounds to expect its restructuring to be successfully implemented. This comes after Noble said earlier on March 22 that it has received notice of default from the trustee of its US$379 million 3.625 per cent bonds, the Business Times relates. The company also temporarily halted trading of its shares on the Singapore Exchange, the Business Times says. The Business Times recalls that the company announced on March 16 that it will not be paying the principal and interest on these bonds which had been due on March 20, nor the coupon due on its 2020 notes that it has already missed. The embattled commodity trader said that the terms of its restructuring support agreement (RSA) with creditors provide for a standstill, which means creditors who have signed or acceded to the deal will refrain from taking any action against the company with respect to their claims, the report relays. Noble has received support from holders of 50 per cent of the company's existing senior claims, which include claims in respect of its 2018 notes, 2022 notes, 6.75 per cent notes due 2020 and the company's revolving credit facility. However, it is not clear how much of the 2018 bond this group holds. The company said in an exchange filing on March 22 that it expects more creditors to come on board the RSA, giving further support to the standstill in respect of its senior debts. While 2018 noteholders who have not signed the RSA could try to take action against the company, it would be very difficult to successfully wind up the company, which is the only realistic remedy available to such a holder, Noble, as cite by the Business Times, said. Holders of the 2018 notes would need to request the trustee in writing to institute proceedings against the company, but the trustee would first need to be indemnified, secured or pre-funded to its satisfaction, according to the report. No noteholder may proceed directly against the company unless the trustee, having become bound to so proceed, fails to do so within a reasonable period of time, Noble noted in its exchange filing, the Business Times relays. Given the support for the RSA, and the time and cost associated with pre-funding the trustee, "the board considers that the likelihood of a group of 2018 noteholders successfully organising winding up process in respect of the company to be low". The report says even if the trustee or 2018 noteholders were able to take action against the company to sue for the amount owed under the 2018 notes, or to more likely to attempt to wind up the company, the relevant court would likely adjourn or stay any such proceedings until the restructuring has been carried out. Once the restructuring becomes effective, those creditors will no longer have claims against the company in respect of existing debts - regardless of whether or not they supported the restructuring, the Business Times notes. About Noble Group Hong Kong-based Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- engages in supply of agricultural, industrial and energy products. The Company supplies agricultural and energy products, metals, minerals and ores. Agriculture products include grains, oilseeds and sugar to palm oil, coffee, and cocoa. Energy business includes coal, gas and liquid energy products. In metals, minerals and ores (MMO), it supplies iron ore, aluminum, special ores and alloys. The Company operates nearly in 140 locations. It supplies growth demand markets in Asia and Middle East. Alcoa World Alumina and Chemicals is the subsidiary of this company. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 5, 2018, Fitch Ratings has downgraded Noble Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) and the ratings on all its outstanding senior unsecured notes to 'C' from 'CC'. The Recovery Rating of the notes is 'RR5'. The downgrade follows Noble's announcement on Jan. 29, 2018 of a debt restructuring plan that Fitch views as a distressed debt exchange (DDE) as it involves a material reduction in principal, and the restructuring is necessary to avoid a traditional payment default due to the liquidity shortfall of the company. Fitch will downgrade the IDR to Restricted Default (RD) upon the completion of the debt restructuring and following that, may assign an appropriate IDR for the issuer's post-exchange capital structure, risk profile and prospects. NOBLE GROUP: Founder Richard Elman Resigns as Non-Exec Director --------------------------------------------------------------- The Business Times reports that Noble Group founder, non-executive director and chairman emeritus Richard Elman, 77, has resigned with immediate effect. This comes as the company is facing pressure from its creditors and shareholders, the report says. In a separate announcement on March 21, the commodities trading company said it intends to "vigorously resist" a lawsuit by major shareholder Goldilocks Investment accusing it of inflating profits to raise money. The report relates that the beleaguered commodity trader said that it had not been served with the writ as at 7:26 a.m. on March 21 and was unable to comment on the accuracy of news reports about the lawsuit. However, "the company believes the allegations in the lawsuit . . . to be unfounded and intends to vigorously resist them if served". The Business Times says Mr. Elman had retained a presence in the company he founded in 1986, even as he gradually gave up his leadership responsibilities over the years. He stepped down as CEO at the end of 2009 and became non-executive chairman, though he struggled to hand over the reins - the group had five CEOs in seven years, the report says. The report relates that Mr. Elman eventually also stepped down as chairman when Paul Brough, a restructuring specialist who helped to liquidate Lehman Brothers, was appointed to the role last year. The position of chairman emeritus was then created for Mr. Elman, the report notes. According to the report, the firm's major shareholder Goldilocks Investment Company welcomed Mr. Elman's resignation, calling it a "new dawn" for the company, even as it raised questions on whether the resignation entitles Mr. Elman to any further payments or severance. "Despite lack of reasons, Mr. Elman's resignation should be welcomed," it said in an emailed statement, the report relays. "It presents an opportunity for a new board composition which would greater protect stakeholder interest and transparency." A board consisting of a majority of independent directors may be the stepping stone towards a fairer restructuring scheme, Goldilocks added. "Unlike what many have been portrayed, Goldilocks has never been against the restructuring of Noble. Instead, it has consistently advocated for a better shareholders' value recognition instead of the continued payouts to the management team," it said. "Goldilocks is assessing a possible new management team and will be looking to make proposals to replace the current ones." About Noble Group Hong Kong-based Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- engages in supply of agricultural, industrial and energy products. The Company supplies agricultural and energy products, metals, minerals and ores. Agriculture products include grains, oilseeds and sugar to palm oil, coffee, and cocoa. Energy business includes coal, gas and liquid energy products. In metals, minerals and ores (MMO), it supplies iron ore, aluminum, special ores and alloys. The Company operates nearly in 140 locations. It supplies growth demand markets in Asia and Middle East. Alcoa World Alumina and Chemicals is the subsidiary of this company. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 5, 2018, Fitch Ratings has downgraded Noble Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) and the ratings on all its outstanding senior unsecured notes to 'C' from 'CC'. The Recovery Rating of the notes is 'RR5'. The downgrade follows Noble's announcement on Jan. 29, 2018 of a debt restructuring plan that Fitch views as a distressed debt exchange (DDE) as it involves a material reduction in principal, and the restructuring is necessary to avoid a traditional payment default due to the liquidity shortfall of the company. Fitch will downgrade the IDR to Restricted Default (RD) upon the completion of the debt restructuring and following that, may assign an appropriate IDR for the issuer's post-exchange capital structure, risk profile and prospects. NOBLE GROUP: S&P Cuts ICR to D on Missed Payments for 2018 Notes ---------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Hong Kong-based commodity trader Noble Group Ltd. to 'D' from 'CC'. S&P said, "We lowered the ratings because Noble has missed the principal and coupon payment for its 2018 notes due March 20, 2018. Noble also missed the coupon payment on its 2022 notes due March 9, 2018. In addition, the company said it would not make the payments despite being given 30-day grace periods to meet both obligations. The failure to make these payments will trigger cross-defaults on the company's other obligations. We do not expect Noble to meet any outstanding obligations as the company preserves its assets during the restructuring process." Noble is undergoing a debt restructuring, which management expects to be completed by the end of July. S&P will conduct another review the company's credit profile after the restructuring is complete. ========= I N D I A ========= AJAY HIRALAL: Ind-Ra Assigns BB Issuer Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Ajay Hiralal Thakur (AHT) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR25 mil.Fund-based limits assigned with IND BB/Stable/ IND A4+ rating; and -- INR30 mil.Non-fund-based limits assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect AHT's small scale of operations owing to low- value projects executed in the past. AHT's revenue increased to INR225 million from INR111 million in FY16, driven by the execution of higher number of private and government projects. As on February 1, 2018, AHT had an order book position of INR1,220 million that would be executed in the next 12-15 months. AHT booked INR450 million in revenue for 10MFY18. The ratings also reflect AHT's modest credit metrics. EBITDA interest coverage improved to 4.8x in FY17 from 3.4x in FY16, primarily driven by an increase in absolute operating EBITDA to INR24 million from INR22 million. Net leverage deteriorated to 2.7x in FY17 from 2.3x in FY16, as additional debt was taken for incurring capex on the purchase of construction equipment. Ind-Ra expects credit metrics to remain comfortable in the near term in view of the absence of a major debt-led capex. The ratings are constrained by AHT's weak liquidity and proprietorship nature of business. AHT's average utilization of its fund-based facilities was 98% for the 12 months ended January 2018. Cash and cash equivalents were INR0.1 million in FY17 (FY16:INR0.1 million). The ratings, however, are supported by the proprietor's experience of more than a decade in the civil construction business and a comfortable EBITDA margin. EBITDA margin declined to 10.76% in FY17 (FY16: 19.7%) due to an increase in cost of materials consumed. AHT expects EBITDA margin to stay around 10.0% in the near term in view of higher execution of low-margin private projects. RATING SENSITIVITIES Negative: Any decline in revenue or EBITDA margin leading to any deterioration in the credit metrics could be negative for the ratings. Positive: Any substantial rise in revenue, along with an increase in EBITDA margin leading to an improvement in the credit metrics, on a sustained basis will be positive for the ratings. COMPANY PROFILE Founded in 2009, AHT is a civil contractor. In 2012, AHT became a Class A contractor, thereby becoming eligible for undertaking direct contract works. It has been participating in tenders floated by government departments in Gujarat and Daman and Diu. It undertakes road construction and repairs. Since FY16, AHT has been executing private construction projects, including industrial construction works. AJIT KUMAR: ICRA Keeps B Rating in Not Cooperating Category ----------------------------------------------------------- ICRA Ratings said the ratings for the INR10.00 crore bank facilities of Ajit Kumar Swain continue to remain under 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 2.00 [ICRA]B (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 1.00 [ICRA]B (Stable) ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Bank Guarantee 5.00 [ICRA]A4 ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 2.00 [ICRA]A4 ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis 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. Incorporated in 2009 as a proprietorship firm, the entity commenced operations in the second quarter of FY2015. Ajit Kumar Swain (AKS/ the entity) is a civil constructor involved in irrigation canals - earthwork, rehabilitation etc, and road works in Odisha. AKS is a registered Special Class Contractor with the Public Works Department (PWD), Odisha, and this allows the entity to bid for large contracts floated by the department. The proprietor of the firm is also engaged in construction activities through a group firm - M S Infraengineers Pvt Ltd (MSIPL), of which he is the Chief Executing Officer. DHEEPTI EXPORTS: Ind-Ra Corrects January 22 Rating Release ---------------------------------------------------------- India Ratings and Research (Ind-Ra) issued a correction on the ratings release on Dheepti Exports and Imports published on January 22, 2018, that incorrectly mentioned the issuer's name as Dheepti Spices instead of Dheepti Exports and Imports, and incorrectly mentioned INR240 million in revenue for 9MFY17 instead of 9MFY18. An amended version is: India Ratings and Research (Ind-Ra) has affirmed Dheepti Exports and Imports' (Dheepti) Long-Term Issuer Rating at 'IND B'. The Outlook is Stable. The instrument-wise rating action is given below: -- INR54.0 mil.Fund-based working capital limits affirmed with IND B/Stable/IND A4 rating. KEY RATING DRIVERS The affirmation reflects continued small scale of operations and weak credit metrics because of its low-margin business of processing pulses and spices. Revenue increased to INR259 million in FY17 (FY16: INR247 million) because of a rise in orders. Dheepti recorded INR240 million in revenue, according to interim financials for 9MFY18. As of December 2017, Dheepti had an order book of INR132.5 million, which will be executed before March 2018, providing moderate revenue visibility for the near term. Moreover, net leverage (adjusted net debt/operating EBITDA) was 12.5x in FY17 (FY16: 8.1x). The deterioration in net leverage was because of a decrease in EBITDA margin to 2.1% in FY17 (FY17: 3.0%), primarily due to the commoditized nature of the raw material. EBITDA interest coverage (operating EBITDA/gross interest expense) improved to 1.3x in FY17 from 1.2x in FY16, driven by a decrease in interest expense. The ratings reflect the firm's tight liquidity position owing to high working capital requirements. Its average fund-based facility utilization was 91% for the 12 months ended December 2017. The ratings, however, continue to be supported by the proprietor's 15 years of experience in the spice processing industry. RATING SENSITIVITIES Negative: Any decline in the profitability resulting in deterioration in the credit metrics on a sustained basis could lead to a negative rating action. Positive: Any substantial growth in the top line, along with an improvement in the profitability, leading to an improvement in the credit metrics could lead to a positive rating action. COMPANY PROFILE Formed in 2006 by Mr. Amarnath Jeyaraj, Dheepti is a proprietorship firm primarily engaged in the processing of kaspa peas at its 20-tonne-per-day facility in Tuticorin (Tamil Nadu). The site registered an 80% capacity utilization for FY17. In August 2017, the firm entered the jewelry business. EDU SMART: CARE Moves D Rating to Not Cooperating Category ---------------------------------------------------------- CARE Ratings has been seeking information from Edu Smart Services Private Limited (ESSL) to monitor the rating vide e-mail communications/ letters dated November 1, 2017, February 8, 2018, February 13, 2018, February 20, 2018 and February 27, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. Further, ESSL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. In line with the extant SEBI guidelines CARE's rating on ESSL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 116.29 CARE D; Issuer not cooperating Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on March 31, 2017, the following were the rating weaknesses: Key Rating Weaknesses Delays in servicing of debt obligations: There have been delays in debt servicing by ESSL. The delays are on account of stressed liquidity position of Educomp Solutions Limited (ESL) and delay in execution of 'Smart Class' classrooms by ESSL leading to delays in receipt of payments from the schools. The same led to a shortfall in funds for ESSL to repay its debt obligations on time. Incorporated on July 2, 2009, Edu Smart Services Private Limited (ESSL) is a Special Purpose Vehicle (SPV) created with the objective to implement the 'Smart Class' and other associated products and services of Educomp Solutions Limited, across various private schools in India. The shareholding of ESSL vests with two individuals Mr Pramod Thatoi (50%) and Mr Ashok Mehta (50%) (who are ex -employees of ESL). Under the 'Smart Class' Program, ESL builds the IT infrastructure for private schools and licenses its digital education content to schools. The model works mainly through a Build-Own-Operate- Transfer (BOOT) framework, where in ESL incurs the initial expenditure for installation of hardware and education content related infrastructure. Revenue from the schools is received as annuity over 5 years (payments received on a quarterly basis.) ESL provides hardware and content to classrooms and receives 75% of the contract value over the contract period from ESSL. The cost of hardware and content component is estimated at 35% and 40% of the total contract value respectively which ESSL pays to ESL over a period of 5 years. (Out of this 75% of the contract value, ESL receives 52.5% (now approximately 45-50%) upfront in the first year from ESSL through assignment of receivables and 22.5% is as per the contract period). ESSL securitizes the receivables from schools with a lender/bank and pays ESL upfront 52.5% of the contract value out of the bank loan amount. ESSL is responsible for maintenance services and collects 100% revenues from the schools over five-year period for the services to be provided to the school. Out of this 100% contract value collected from the schools, ESSL utilizes the quarterly receipts from schools under contract to service the principal and interest for the term loan availed, and also to pay off ESL (to the extent of balance 22.5% of contract value). EDUCOMP INFRASTRUCTURE: CARE Moves C Rating to Not Cooperating -------------------------------------------------------------- CARE has been seeking information from Educomp Infrastructure & School Management Limited (EISML) to monitor the rating vide e- mail communications/letters dated November 1, 2017, February 8, 2018, February 13, 2018, February 20, 2018 and February 27, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the rating. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. Further, EISML has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. In line with the extant SEBI guidelines CARE's rating on EISML's cumulative compulsory convertible preference shares will now be denoted as CARE C; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cumulative Compulsory 34.00 CARE C; Issuer not Convertible Preference cooperating Shares Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed description of the key rating drivers At the time of last rating on March 31, 2017, the following were the rating weaknesses: Key Rating Weaknesses Stressed liquidity position: EISML's liquidity position is stressed due to its poor operational and financial performance during the period FY13-FY16 (refers to the period April 01 to March 31). Weak financial risk profile: During FY16 (refers to the period April 01 to March 31), EISML reported total operating income of INR58.95 crore as against total operating income of INR79.88 crore during FY15, registering y-o-y decline of around 26%. Further, the company reported net loss of INR132.01 crore during FY16 as compared to net loss of INR240.13 crore during FY15. EISML was promoted by Educomp Solutions Limited (ESL) with the objective of developing quality school assets across the country in order to cater to the huge unmet demand for quality schools in India. The company has 32 schools operational as out of which 29 are owned by EISML and 3 are Joint Ventures (JV) with other companies. Depending on the location, pricing and demographic profile of the students to which the schools will be catering to, EISML follows different business models to run the schools. In most of these models, the schools are operated by various trusts and societies. EISML provides infrastructural facilities, content, educational products, management consultancy, etc to these schools. The same are recognized over the period of agreement between EISML and the trusts which operate these schools. In the JV model, EISML does not incur any major capital expenditure like land, building, etc and is primarily involved in operations of the school. Of late, EISML has focused entirely towards asset-light model by entering into more JVs with schools wherein the capital required to be deployed is less. During FY16 (refers to the period April 01 to March 31), EISML reported total operating income of INR58.95 crore and net loss of INR132.01 crore as against total operating income of INR79.88 crore and net loss of INR240.13 crore in FY15. EDUCOMP SOLUTIONS: CARE Moves D Rating to Not Cooperating Cat. -------------------------------------------------------------- CARE Ratings has been seeking information from Educomp Solutions Limited (ESL) to monitor the ratings vide e-mail communications/ letters dated November 1, 2017, February 8, 2018, February 13, 2018, February 20, 2018 and February 27, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, ESL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The ratings on ESL's bank facilities, NCDs and receivables assignment Facility will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 1884.40 CARE D; Issuer not cooperating; Facilities Based on best available Information Long-term/Short- 37.40 CARE D; Issuer not cooperating; Term Bank Based on best available Facilities Information NCD 45.00 CARE D; Issuer not cooperating; Based on best available Information Receivables 404.08 CARE D; Issuer not cooperating; Assignment Based on best available Facility Information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating assigned to the bank facilities, NCDs and receivables assignment facility of Educomp Solutions Limited (ESL) continues to factor in the delays in servicing of the company's debt obligations. Detailed description of the key rating drivers At the time of last rating on March 31, 2017, the following were the rating weaknesses (updated for the information available from BSE): Key Rating Weaknesses Delays in servicing of debt obligations: Weak operational and financial performance in past years led to stress on the liquidity position of the company and eventually led to delays in servicing of debt obligations by the company. The company is currently undergoing Corporate Insolvency Resolution Process after order dated May 30, 2017 of the NCLT. Educomp Solutions Ltd. (ESL) was incorporated in 1994 as Educomp Datamatics Pvt. Ltd. and the name of the company was changed to the present one in August 2005. The company is engaged in providing digital educational content in the classroom through its patented product 'Smart Class' and Edureach (earlier known as Instructional and Computational Technology (ICT)). 'Smart Class' is a first of its kind, teacher-led educational content based solution which provides technology based learning into the classrooms. Edureach works closely with various State and Central Government agencies to implement large scale Public-Private- Partnership projects. The company is also engaged in providing High Learning Solutions comprising vocational, higher education and professional development, K-12 schools (comprising preschools and high schools) and online, supplementary & global Business. During FY17 (refers to the period April 1 to March 31), ESL reported total operating income of INR211.32 crore and loss of INR475.56 crore as against total operating income of INR235.04 crore and loss of INR304.37 crore in FY16. GG EXPORTS: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed G.G. Exports' (GGE) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is as follows. -- INR1.0 bil.(increased from INR250 mil.)Fund-based working capital facilities affirmed with IND BB+/Stable/IND A4+ rating. KEY RATING DRIVERS The affirmation reflects GGE's continued modest scale of operations and credit metrics due to its presence in a highly competitive and volatile diamond industry. Revenue grew to INR2,705 million in 10MFY18 (FY17: INR2.7 billion) owing to rising demand from Hong Kong, Belgium and domestic market. As per management, the firm is likely to achieve revenue of INR3,100 million during FY18. Net leverage (Ind-Ra-adjusted net debt/operating EBITDAR) improved to 3.1x in 10MFY18 (FY17: 4.22x) owing to reduced debt levels. In addition, GGE achieved gross interest coverage (operating EBITDA/gross interest expense) of 4.35x in 10MFY18, against Ind- Ra's expectation of 3.3x for FY18 on account of an improvement in EBITDA margin. The ratings remain constrained by the firm's elongated net working capital cycle of 205 days in 10MFY18 (FY17: 264 days) due to high inventory build-up. The ratings continue to factor in the partnership nature of the organization. The ratings, however, remain supported by the firm's strong EBITDA margin of 9.48% in 10MFY18 (FY17: 9.15%). The rise in the EBITDA margin was due to reduced rough diamond prices and significant foreign exchange gains. However, the firm's profitability remains vulnerable to price movements of rough, and cut and polished diamonds, and foreign exchange volatility. The firm mitigates the forex risk to a certain extent by using a forward cover. The ratings also benefit from GGE's comfortable liquidity position as indicated by 79% average peak utilization of the fund-based limits for the 12 months ended February 2018. The ratings continue to be supported by the promoters' experience of over three decades in the diamond trading and manufacturing business, leading to longstanding relationships with suppliers and customers. RATING SENSITIVITIES Positive: Growth in revenue while maintaining the EBITDA margin and gross interest coverage sustaining above the current level may lead to a positive rating action. Negative: Any decline in revenue, along with an increase in the net working capital cycle, leading to gross coverage reducing below 2.25x on a sustained basis could lead to a negative rating action. COMPANY PROFILE Formed in 2010, GGE is a partnership firm wholly-owned and managed by the Zadaphia family. It is engaged in the cutting and polishing of 0.01-3.00-carat-sized diamonds. The firm has a manufacturing facility in Surat, Gujarat, and a registered office in Mumbai, Maharashtra. GRIS CERAMIC: ICRA Withdraws B+ Rating on INR3cr Cash Loan ---------------------------------------------------------- ICRA has removed its earlier long-term rating of [ICRA]B+(stable) and short-term rating of [ICRA]A4 from the 'UNDER REVIEW' category as Gris Ceramic Llp has now submitted its 'No Default Statement' ("NDS") which validates that the firm is regular in meeting its debt servicing obligations. The firm's rating was moved to the 'Rating under review due to non submission of NDS' category on January 11, 2018. ICRA has also withdrawn the ratings of [ICRA]B+(Stable) and [ICRA]A4 on the INR11.07-crore2 bank facilities of Gris Ceramic Llp. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based: Term Loan 6.68 [ICRA]B+(Stable); Withdrawn Fund-based: Cash Credit 3.00 [ICRA]B+(Stable); Withdrawn Non-fund based: Bank Guarantee 1.39 [ICRA]A4; Withdrawn Rationale The ratings assigned to Gris Ceramic LLP have been withdrawn at its request based on the no-objection certificate provided by its bankers. Established in April 2016 as a limited liability partnership firm, Gris Ceramic Llp, has set up a greenfield project at Morbi (Gujarat) to manufacture ceramic wall tiles of two different sizes and qualities. The unit has an installed capacity of producing 108 tonnes of tiles per day. The commercial operations commenced from March 2017. The partners have a longstanding experience in the ceramic industry vide their association with other units -- Real Granito Pvt. Ltd. and Gris Ceramic. GOYAL AUTOMOBILES: ICRA Keeps B+ Rating in Not Cooperating ---------------------------------------------------------- ICRA Ratings said the ratings for the INR5.00 crore bank facilities of Goyal Automobiles continue to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Cash 5.00 [ICRA]B+(Stable) ISSUER NOT Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis 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. Incorporated in 2000 as a proprietorship firm, Goyal Automobiles (GA) is an authorised dealer for vehicles manufactured by Hero Motocorp Limited (HML). The company sells vehicles and provides ancillary services that include vehicle servicing and sale of spare parts and accessories from its showroom based in Raigarh, Chhattisgarh. GOYAL MOTOCORP: ICRA Keeps B Rating in Not Cooperating Category --------------------------------------------------------------- ICRA Ratings said the ratings for the INR6.50 crore bank facilities of Goyal Motocorp Private Limited continue to remain under 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 4.00 [ICRA]B (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund-based- 2.50 [ICRA]B(Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis 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. Incorporated in 2013, Goyal Motocorp Private Limited (GMPL) is an authorised dealer of cars manufactured by Hyundai Motor India Limited (HMIL). The company sells vehicles and provides ancillary services that include vehicle servicing and sale of spare parts and accessories from its showroom based in Raigarh, Chhattisgarh. The company has another small showroom at Pathalgaon, which falls under Jashpur district of Chhattisgarh, offering vehicle sales as well as servicing. HIMALAYAN ROAD: Ind-Ra Affirms BB Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Himalayan Road Construction Private Limited's (HRCPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR60 mil. Fund-based limits affirmed with IND BB/Stable/ IND A4+ rating; and -- INR170 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects HRCPL's continued small scale of operations due to its limited order book size. Revenue decreased to INR163.86 million in FY17 (FY16: INR307.58 million) on account of a decrease in orders from its customers. At end-February 2018, the company had an order book of INR191.69 million (1.16x of FY17 revenue), which is likely to be executed by FY19. The ratings continue to be constrained by high geographical concentration risk as the company receives all of its orders from West Bengal only. The ratings reflect HRCPL's modest liquidity position. HRCPL's average fund-based limits utilization was at 61.84% during the 12 months ended February 2018 whereas its joint venture Sunil Kumar Agarwal's average fund-based limits utilization was at 98.14% (there were instances of overutilization during the period). The ratings, however, continue to be supported by HRCPL's strong credit metrics due to its low dependency on the external debt. Gross interest coverage (operating EBITDA/gross interest expense) improved to 9.94x in FY17 (FY16: 6.64x) due to a decrease in the company's interest expenses arising out of lower utilization of short-term debt. The net leverage (total adjusted net debt/operating EBITDAR) slightly deteriorated to 0.92x in FY17 (FY16: 0.56x) due a decrease in absolute EBITDA backed by a decline in revenue. However, EBITDA margins improved to 10.85% in FY17 (FY16: 8.57%) due to a decrease in material cost. The ratings also continue to be supported by the promoter's experience of over three decades in the construction industry. RATING SENSITIVITIES Negative: Decline in profitability leading to deterioration in the credit metrics could be negative for the ratings. Positive: Increase in revenue along with maintenance of the credit metrics or improvement in liquidity could be positive for the ratings. COMPANY PROFILE HRCPL is based in Siliguri, West Bengal. It is engaged in the construction, improvement, and widening of roads. It was formed as a partnership firm in 1992, which was converted into a private limited company in 2009. HRCPL executes only government contracts in West Bengal. HRCPL entered into a joint venture in 2013 with Sunil Kumar Agarwal for the electrification work of villages under Darjeeling Pulbazar Rabgli. JAIPRAKASH ASSOCIATES: Asked to Deposit INR200 crore by May 10 -------------------------------------------------------------- The Times of India reports that the Supreme Court on March 21 asked the embattled realty firm Jaiprakash Associates Limited (JAL) to deposit INR200 crore in two instalments by May 10. According to the report, the bench headed by Chief Justice Dipak Misra asked the real-estate major to deposit INR100 crore by April 6 and the rest by May 10. TOI relates that the bench, comprising justices A M Khanwilkar and D Y Chandrachud, also asked the firm not to send any notices for default in payment of EMIs to home buyers who have opted for refund. The top court asked JAL to submit a project-wise chart of home buyers seeking refund so that the amount can be dispersed on pro- rata basis, the report says. "At present, we are concerned with the refund and will take later the issue raised by home buyers who want delivery of flats," the top court said. TOI, meanwhile, reports that JAL informed the apex court that only 8% of 31,000 home buyers have opted for refund and the rest want possession of flats. The firm also told the court that it has received/sought occupation certificate with regard to 13,500 flats so far in 2017-18. According to TOI, the firm had on January 25 deposited INR125 crore in the Supreme Court after being directed to do so to safeguard the interests of home buyers. The top court had on January 10 directed JAL, the holding firm of Jaypee Infratech Ltd (JIL), to provide details of its housing projects in the country, saying home buyers should either get their houses or their money back. It had refused to accord urgent hearing on a plea of the Reserve Bank of India seeking its nod to initiate insolvency proceedings before the National Company Law Tribunal (NCLT) against JAL, saying it would be dealt with at a later stage, TOI says. Home buyers, including Chitra Sharma, had moved the apex court saying around 32,000 people had booked their flats and were now paying installments. Hundreds of home buyers have been left in the lurch after the NCLT, on August 10 last year, admitted the IDBI Bank's plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a INR526-crore loan, the plea has said, adds TOI. Jaiprakash Associates Limited is a diversified infrastructure company. The Company's principal business activities include engineering, construction and real estate development, and manufacture of cement. Its segments include Construction, which includes civil engineering construction/engineering, procurement and construction (EPC) contracts/expressway; Cement, which includes manufacture and sale of cement and clinker; Hotel/Hospitality, which includes hotels, golf course, resorts and spa; Sports Events, which includes sports-related events; Real Estate, which includes real estate development; Power, which includes generation and sale of energy; Investments, which includes investments in subsidiaries and joint ventures for cement, power, expressway and sports, among others, and Others, which includes coal, waste treatment plant, heavy engineering works, hitech castings and man power supply, among others. It has operations in Haryana, Madhya Pradesh, Gujarat and Jharkhand, among others. JAY LAXMI: ICRA Keeps B+ Rating in Not Cooperating Category ----------------------------------------------------------- ICRA Ratings said the ratings of INR10 crore bank facilities of Jay Laxmi Poly Plast (JLPP) continue to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+, (Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 5.46 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Cash Credit 3.95 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Letter of Credit 0.50 [ICRA]A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 0.09 [ICRA]B+(Stable)/A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' Category 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. The current rating action has been taken by ICRA basis limited 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. Established in 2008, Jay Laxmi Poly Plast (JLPP) is engaged in manufacturing of HDPS & PP woven fabrics (laminated and non- laminated), bag and tarpaulin in the range of 55 GSM (Grams per Square Metre) to 150 GSM. The firm started its commercial operations in March 2008 from its manufacturing facility located at Dholka, Ahmedabad with an installed capacity to manufacture 3600 Metric Tonnes (MT) fabrics. The promoters of the firm have extensive experience in petrochemicals and polymers industry. KAPSONS INDUSTRIES: CARE Moves D Rating to Not Cooperating Cat. -------------------------------------------------------------- CARE Ratings has been seeking information from Kapsons Industries Private Limited (KIPL) to monitor the rating vide letters/email communications dated February 14, 2018; February 8, 2018; January 17, 2018; December 19, 2018; and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Kapsons Industries Private Limited's bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 129.40 CARE D; Issuer not cooperating; Facilities Based on best available Information Short term Bank 29.00 CARE D; Issuer not cooperating; Facilities Based on best available Information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on February 21, 2017, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Weaknesses Ongoing delays in debt servicing: There are ongoing delays in the servicing of the debt obligations. The delays are on account of weak liquidity position as the company is unable to generate sufficient funds in a timely manner. Weak financial risk profile: The scale of operations of the company witnessed a declining trend during FY15-FY17 (refers to the period April 1 to March 31) period. Furthermore, the company reported cash losses in FY15, FY16 and FY17 mainly due to high operational expenses and high interest cost incurred on external borrowings. The accumulated deficits in past years have resulted in negative capital structure and negative networth. Key Rating Strengths Experienced promoters and long track record of operations: KIPL was promoted in 1980 by Mr Surinder Kumar Sehgal (Chairman) and his brother Mr Narinder Kumar Sehgal (Managing Director). Both the promoters have over 35 years of experience in the industry. The promoters look after the overall management and the day-to-day affairs of the company and are ably supported by a team of experienced professionals. The company is having a track record of over three decades of successful operations and has a long and established relationship with its suppliers and customers. KIPL was promoted by Mr Surinder Kumar Sehgal and Mr Narinder Kumar Sehgal in 1980. The company was converted from public limited to private limited company on April 10, 2015, under the name Kapsons Industries Pvt. Ltd. The company is mainly engaged in the manufacturing of electrical stampings used in the Rotating Electrical Machinery. The company also manufactures Rotor die cast, pressure aluminium die cast components and completely assembled products like electrical motors and pumps. KIPL has its manufacturing facilities in Jalandhar and Pune having combined installed capacity of 26,000 MTPA of electrical stampings, as on September 30, 2015. KENA ALLOYS: CARE Moves D Rating to Not Cooperating Category ------------------------------------------------------------ CARE Ratings has been seeking information from Kena Alloys Private Limited (KAPL) to monitor the rating(s) vide e-mail communications/letters dated October 18, 2017, October 26, 2017, October 31, 2017, November 7, 2017, November 10, 2017, December 11, 2018, January 3, 2018, January 5, 2018, January 18, 2018, January 25, 2018, February 6, 2018, February 23, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating of Kena Alloys Private Limited's bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long- term Bank 4.75 CARE D; Issuer not cooperating; Facilities Based on best available information Short-term Bank 0.40 CARE D; Issuer not cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating takes into account delays in debt repayment owing to weak liquidity position. Detailed Description of Key Rating Drivers Key Rating Weaknesses Ongoing delay in debt servicing: KAPL has been irregular in servicing its debt obligation due to weak liquidity position of the company. Ahmedabad (Gujarat)-based Kena Alloys Private Limited (KAPL) incorporated in 2011 by Mr. Jignesh Patel and Mr. Rakesh Patel as a private limited company. The company is engaged into manufacturing of iron ingots, which was started from October, 2013. The manufacturing plant is located at Kheda (Gujarat) with an installed capacity of 14,400 metric tons per annum (MTPA) as on March 31, 2016. KINJAL CHEMICAL: Ind-Ra Migrates BB LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Kinjal Chemical Private Limited's (Kinjal) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is as follows: -- INR140 mil.Fund-based facilities migrated to Non-Cooperating Category with IND BB(ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) ratings. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 12, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Founded in 2000, Kinjal manufactures alcohol and castor oil, and trades molasses. MAHADEV INDUSTRIES: ICRA Reaffirms B Rating on INR22cr Loan ----------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B and the short- term rating of [ICRA]A4 on the INR27.00-crore (enhanced from INR25.80 crore) bank facilities of Mahadev Industries. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Working Capital Cash Credit 22.00 [ICRA]B(Stable); Reaffirmed Fund-based Working Capital Inventory Funding 5.00 [ICRA]A4; Reaffirmed Rationale The rating action factors in the slight increase in the operating income in FY2017 as well as the slight improvement in the interest coverage ratio. These factors were, however, accompanied with a slight deterioration in working capital intensity as well as increased TOL/TNW3 levels. ICRA's ratings continue to be constrained by the intensely competitive nature of the industry in which Mahadev Industries operates, exerting pressure on its operating margins. The ratings also continue to take into account the firm's high working capital intensity (NWC/OI4 at 47% in FY2017) owing to high inventory holding period. The high working capital requirement has resulted in heavy reliance on bank borrowings, which, coupled with the company's thin profit margin has resulted in elevated gearing and weak debt coverage indicators. The ratings, however, continue to derive support from the firm's experienced management and its presence in the paddy-producing belt of India, which ensures easy availability of raw material. The rating also continues to factor in the firm's established relationship with its customers and the positive demand outlook for the rice industry as India is the second largest producer and consumer of rice in the world. Going forward, the firm's ability to profitably increase the scale of operations coupled with an improvement in the capital structure and working capital intensity will remain the key rating sensitivity. Outlook: Stable ICRA believes that the firm will continue to benefit from the experience of its partners. The outlook may be revised to Positive if a substantial increase in the scale of operations as well as cash accrual and efficient working capital management strengthen the financial risk profile. Conversely, the outlook may be revised to Negative if lower-than-expected cash accrual, incremental working capital requirement, or any large, debt-funded capex weakens liquidity. Key rating drivers Credit strengths Experienced management provides competitive edge: The promoters and their families have been involved in rice milling, processing and sorting for more than two decades and have gained a thorough knowledge of the market. The firm's long-term presence in the industry has helped it establish strong relationships with suppliers and customers. Local procurement of raw materials helps save transportation costs: The firm's key raw material is the basmati variety of paddy, which is mostly procured from local wholesale grain markets in Punjab during the paddy buying season. This saves time and transportation cost for the firm. Credit challenges Financial profile characterised by weak debt coverage and return indicators: The rice industry is less value additive in nature with relatively low margins. As a result, the company's profitability is weak and consequently, its return indicators and debt protection metrics are modest. Intense competition limits profitability: The rice industry is highly competitive and fragmented in nature given the presence of established players as well as numerous small players in the unorganised sector. This limits profitability. Low entry barrier due to low capital-intensive business: The rice milling business has low entry barriers due to the low capex requirement as well as the low technical complexity associated with the work. This has resulted in intense competition on account of numerous new entrants, including small-to-medium scale enterprises, in the industry every year. Vulnerability to the vagaries of monsoon and other agricultural risks: Rice, being an agricultural commodity, is exposed to the vagaries of monsoon and other agricultural risks such as disease outbreaks, lower-/higher-than-projected production levels (that impact the supply and, hence, the price), poor storage capacities and inconsistency in quality. The firm's ability to buy paddy of a consistent quality at the right price is the key to success in the rice industry. Mahadev Industries was established in 2000 by Mr. Kapil Kumar, Mr. Kulbhusan Lal, Mr. Chaand Dhawan, Mr. Kunal Dhawan and Mr. Vikas Kumar as partners. It has an installed milling capacity of 4 metric tonnes (MT) per hour and a sorting capacity of 4 MT per hour. It undertakes the milling of basmati as well as non-basmati rice. However, about 75% of its revenue is derived from basmati rice. MODIGOLD PIPES: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Modigold Pipes Private Limited's (MPPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is as follows: -- INR58 mil.Fund-based working capital limits migrated to Non-Cooperating Category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 23, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1996 in Butibori, Maharashtra, MPPL manufactures and exports water tanks, polyvinyl chloride pipes, high density polyethylene pipes, unplasticized polyvinyl chloride pipes, suction pipes, low density pipes, sprinkler systems and garden pipes, among others. MPPL is promoted by Mr. Rajendra Bansal and Mr. Sourabh Bansal. NARENDRA EMPORIS: ICRA Keeps B+ Rating in Not Cooperating Cat. -------------------------------------------------------------- ICRA Ratings said the ratings of INR15.00 crore bank facilities of Narendra Emporis limited (erstwhile Narendra Cotton Ginning & Pressing Company Private Limited) (NEL) continue to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Line of Credit 15.00 [ICRA]B+ (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Cash Credit (15.00) [ICRA]B+ (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Packing Credit (10.00) [ICRA]A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Inland/Foreign (3.50) [ICRA]A4; ISSUER NOT Letter of Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis best available/dated/limited 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. Narendra Emporis Limited (NEL) (erstwhile, Narendra Cotton Ginning & Pressing Company Private Limited) was incorporated in 1997. The company was initially set up as a ginning and pressing unit for processing raw cotton into bales. Later in 2007-08, the company undertook expansion through forward integration into spinning of yarn (open ended), equipped with six spinning machines with 1,728 rotors. From FY2015, the company also diversified into ring spun carded cotton yarn manufacturing with installation of 13 spinning machines and three attachments with 16,704 spindles. The manufacturing unit of the company is located at Rajkot, which is in proximity to cotton growing farmers, resulting in easy access to raw material. PANTEL TECHNOLOGIES: CARE Moves D Rating to Not Cooperating ----------------------------------------------------------- CARE Ratings has been seeking information from Pantel Technologies Private Limited to monitor the rating(s) vide email communications/ letters dated February 14, 2018, February 10, 2018, February 6, 2018, January 23, 2018 etc. and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Pantel Technologies Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE D; Issuer Not Cooperating; Facilities Based on best available information Short Term Bank 10.00 CARE D; Issuer Not Cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account the ongoing delays in the servicing of interest obligations due to stressed liquidity position. Uttar Pradesh - based, PTP was incorporated in 2010 and is currently being managed by Mr Vijender Singh and Mr Sudesh Kumar. The company is engaged in manufacturing of information technology (I.T.) products such as tablets, mobile etc. PTP's has cumulative installed capacity of 1.83 lakh pieces per annum for tablets, mobiles and other accessories as on March 31, 2015, at its manufacturing units located in Noida, Uttar Pradesh. The company imports more than 90% of its raw material requirement from China. PTP exclusively sales its product under the brand name "PENTA". The manufactured products are sold to traders as well as through online sales portal. Prerna Services Private Limited (PSP) is an associate concern of PTP engaged in a similar business. PRAG DISTILLERY: CARE Moves D Rating to Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said that Prag Distillery Pvt. Ltd. has not paid the surveillance fees for the rating exercise agreed to in its Rating Agreement. In line with the extant SEBI guidelines, CARE's rating on Prag Distillery Pvt. Ltd.'s bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 12.82 CARE D; Issuer not cooperating; Facilities Based on Best Available (Term Loan-ECB) Information Long-term Bank 20.00 CARE D; Issuer not cooperating; Facilities Based on Best Available (Fund-based) Information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed Rationale & Key Rating Drivers The ratings take into account the ongoing delays in repayment/ servicing of debt obligation owing to continued strain on the liquidity profile of the company led by poor operational performance in FY17 (refers to the period April 1 to March 31). Detailed description of the key rating drivers At the time of last rating on April 7, 2017, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies, stock exchange and Banker interaction). Key Rating Weaknesses Delays in Debt Servicing: There are on-going delays in servicing of interest and repayment of principal owing to continued strain on the liquidity profile of the company led by poor operational performance in FY17 (refers to the period April 1 to March 31). Incorporated in March 2005, Prag Distillery Pvt. Ltd. (PDPL) is engaged in manufacturing and bottling of Indian Made Foreign Liquor (IMFL). In 2008, Tilaknagar Industries Ltd (TIL) acquired 100% stake in PDPL; forming it a wholly-owned subsidiary. The company is involved into manufacturing IMFL (whisky, brandy, rum, gin and vodka) under various brands owned by TI such as Mansion House, Courier Napolean, Golden Chariot Whisky, Hot Shot Brandy, Nigro He Mans Rum, Madira Rum, Shot Rum, etc. PDPL's manufacturing operations comprises three manufacturing units (one directly operated unit, a leased unit in the state of Andhra Pradesh and a tie-up unit in the state of Telangana). PDPL reported a loss of INR4.07 crore on a total operating income of INR155.74 crore in FY17. PRERNA SERVICES: CARE Moves D Rating to Not Cooperating Category ---------------------------------------------------------------- CARE Ratings has been seeking information from Prerna Services Private Limited to monitor the rating(s) vide e-mail communications/ letters dated February 14, 2018, February 10, 2018, February 6, 2018, January 23, 2018 etc. and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Prerna Services Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.22 CARE D; Issuer Not Cooperating; Facilities Based on best available information Short Term Bank 2.00 CARE D; Issuer Not Cooperating; Facilities Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account the ongoing delays in the servicing of interest obligations due to stressed liquidity position. PSP was incorporated in February, 2013. The commercial operations of the company have started in February, 2015. The company is currently being managed by Mr Manoj Kumar Tyagi, Mr Vijender Singh and Ms Pinki Hudda. The company is engaged in manufacturing as well as trading of electronic products such as personal computers, smart phones, chargers, tablets, etc. The company imports its entire raw material requirement from China & Hong Kong and assembles the parts at its plant, located at Roorkee, Uttarakhand. The company has an installed capacity to assemble 87,000 pieces of tablets as on March 31, 2016. The product is sold under the brand name "PENTA" (brand name acquired by PTP) to traders located in Delhi and near regions. Pantel Technologies Private Limited is an associate concern of PSP engaged in similar business. QUADROS MOTORS: CARE Lowers Rating on INR6.20cr LT Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Quadros Motors Private Limited (QMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 6.20 CARE D; Issuer not cooperating; Facilities Revised from CARE BB-; Stable; based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from QMPL to monitor the rating vide e-mail communications/ letters dated January 29, 2018, February 5, 2018, February 7, 2018, February 16, 2018 and March 5, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on QMPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The revision in the rating takes into account the ongoing delays in servicing of debt obligations and overdrawals in cash credit facility. Detailed description of the key rating drivers Key Rating Weakness Delay in debt servicing obligations: As per the interaction with the banker, the account has been classified as NPA on account of overdrawals in cash credit facility and delay in repayment of interest and principal repayment of term loan Incorporated in the year 2005, QMPL is an authorized dealer for Suzuki Motors India Private Limited (Suzuki) for its two wheelers and covers the whole Goa State, being a '3-S' dealer, it also provides spares and services. QMPL had four showrooms located at Margao, Ponda, Mapusa and Vasco. RAM NATH: CARE Migrates D Rating to Not Cooperating Category ------------------------------------------------------------ CARE Ratings has been seeking information from Ram Nath Memorial Trust Society to monitor the rating(s) vide e-mail communications/ letters dated February 14, 2018, February 10, 2018, February 6, 2018, January 23, 2018 etc. and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Ram Nath Memorial Trust Society's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.15 CARE D; Issuer Not Cooperating; Facilities Based on best available Information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account the ongoing delays in the servicing of interest obligations due to stressed liquidity position. RNMS was established in 1999 under the Society registration Act, 1860, with an objective to provide education services. Currently, Ms Seema Singhal is the President of the society. The day-to-day affairs of the society are carried out by Mr P.N. Singhal, Secretary-cum-treasurer of the society. The society under its different institutions provides graduate / diploma courses in various fields of Engineering, Bachelors in Education, Bachelors in Physical Education, Masters in Education and Management. The course being offered is affiliated to Board of Technical Education (BTE), Lucknow, and Charan Singh University, Meerut. RUSHABH FLOUR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rushabh Flour Mills Pvt Ltd.'s (Rushabh) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions is as follows: -- INR90 mil.Fund-based working capital Limit migrated to Non-Cooperating Category with IND BB(ISSUER NOT COOPERATING) /IND A4+(ISSUER NOT COOPERATING) ratings. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 24, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2007, Rushabh manufactures wheat products such as flour, semolina (rava) and tandoori flour. The company undertakes purchases and sales through brokers. It sells finished products under the Royal Classics brand. It caters to customers across Gujarat and Maharashtra. It has an installed capacity of 525 tons per day and utilizes 57% of the installed capacity. SAI LEASING: CARE Assigns 'D' Rating to INR10cr LT Loan ------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Sai Leasing Company (SLC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 10.00 CARE D Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of SLC is constrained by delays in debt servicing due to stretched liquidity. The prospects of the firm are also exposed to cyclicality in the real estate and construction sector and risk of being partnership nature of constitution. However, the firm has experienced partners in the construction industry. Going forward, the ability of the firm to improve its liquidity position and achieve envisaged sales while achieving profitability would remain the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: There are ongoing delays in servicing the debt obligations. The delays are on account of weak liquidity position as the firm started its commercial operations in April, 2017 and is unable to generate sufficient funds. Exposure to cyclicality in the real estate and construction sector: The prospects of the firm are primarily dependent upon the demand of real estate and construction sector across the globe. The real estate industry is cyclical in nature and is exposed to various external factors like the deposable income, interest rate scenario etc. Any adverse movement in the macro economic factors may affect the real estate industry which in turn would impact the demand for SLC's products. The credit outlook for the sector remains weak until demand picks up which depends on the improvement in the affordability. Partnership nature of constitution: SLC's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Moreover, partnership firms have restricted access to external borrowing as credit worthiness of partners would be the key factors affecting credit decision of the lenders. Fragmented nature of the construction sector albeit improving growth prospects: The construction sector in India is highly fragmented with a large number of small and mid-sized players. This coupled with tendering process in order procurement results into intense competition within the industry. Despite these road blocks faced by the industry, the sector is expected to grow, given huge economic significance associated with it and rising investor interest. Also, the outlook for Indian construction sector continues to be stable in the medium to long-term on account of increased thrust of Government on development of infrastructure to support economic growth. Key Rating Strengths Experienced partners in the construction industry: Mr. Mohit Dabra has total work experience of 8 years which he gained through his association with Dabra Weighbridge, engaged in manufacturing weighbridges (capital goods) and Jai Financing Company, engaged in providing financial services, as an employee. On the other hand, Mrs. Pakija Arora has total work experience of around one decade in the construction industry. She gained this experience through her association with R K City Developers Private Limited (RKC) as employee. Both the partners have adequate acumen about various aspects of business. Sai Leasing Company (SLC) was established in September, 2016 as a partnership firm by Mr. Mohit Dabra and Mrs. Pakija Arora sharing profit and losses equally. SLC is engaged in providing of construction material like aluminum scaffoldings, shuttering plates, planks and other equipments such as cranes to various contractors, builders and developers located in the Chandigarh Tricity area (Chandigarh, Panchkula and Mohali) on rental basis. The premises of the firm are based in Zirakpur, Punjab. The firm started its commercial operations in April, 2017. SEPAL TILES: ICRA Keeps B- Ratings in Not Cooperating Category -------------------------------------------------------------- ICRA Ratings said the ratings of INR8.29 crore bank facilities of Sepal Tiles Private Limited (STPL) continue to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B- (Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 3.00 [ICRA]B- (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Book Debt (1.00) [ICRA]B- (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Term Loan 4.04 [ICRA]B- (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Letter of Guarantee 1.25 [ICRA]A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category 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. The current rating action has been taken by ICRA basis best available/dated/limited 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. Sepal Tiles Private Limited (STPL) was incorporated in November 2011 by Mr. Lalit Patel along with other family members and relatives. It commenced operations by manufacturing floor tiles, however, since FY2016, it has changed its product profile and now manufactures five sizes of digitally printed ceramic wall tiles viz. 16"X24", 18"X12", 12"X24", 16"X16" and 12"X12". The plant is located in Morbi, Gujarat and it manufactures glazed wall tiles, unglazed wall tiles and body clay. Body clay is used for the captive consumption and for sale to customers. The directors of the company are associated with other group concerns namely Sepal Ceramic, which also makes ceramic wall tiles from its plant in Morbi, Gujarat. SHALIMAR PAINTS: CARE Lowers Rating on INR113.81cr Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Shalimar Paints Limited (SPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 113.81 CARE D Revised from CARE B; Facilities Negative Long/short term 20.75 CARE D/CARE D Revised from Bank Facilities CARE B; Negative/ CARE A4 Short-term Bank Facilities 76.25 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of SPL takes into account the ongoing delays in debt servicing. The liquidity of the company is stretched on account of continuous losses incurred in FY17 (refers to the period April 1 to March 31) and 9MFY18 along with working capital intensive nature of operations. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: There are ongoing delays in servicing of bank facilities. Deterioration in financial performance: Operating income declined by around 8% in FY17 on account of disruption in Nasik unit which was affected by a fire in Q3FY17 and also due to demonetisation. Further, the PBILDT margin also declined on account of under recovery of fixed overheads. SPL incurred cash loss in FY17. Further, the company incurred loss of INR29.35 crore in 9MFY18. The company is in the process of raising funds of INR50 crore through a rights issue. Working capital intensive nature of operation resulting in high overall gearing ratio: Overall gearing deteriorated to 3.59x as on March 31, 2017 from 3.07x as on March 31, 2016 due to depletion of net worth and increase in borrowings. Overall gearing continued to remain on the higher side due to working capital intensive nature of the business as reflected by high average collection period and high average inventory period. SPL, incorporated in 1902, belongs to Delhi-based Ratan Jindal faction of the O.P. Jindal group and Mr. Girish Jhunjhnuwala, a Hongkong based businessman. SPL is engaged in manufacturing a wide range of paints in both decorative and industrial paint segments. The company has three manufacturing facilities at Nasik, Sikandrabad and Chennai. It also had a unit in Howrah where operations are suspended due to a fire which damaged the unit in July, 2014. In Q3FY17, there was a fire in the Nasik unit which resulted in damage of stock and fixed assets. Further, the Chennai unit which was decommissioned in April 2015 due to technical issues was re-commissioned in September 2017. SONA BEVERAGES: ICRA Assigns B- Rating to INR10cr Loan ------------------------------------------------------ ICRA has assigned the long-term rating of [ICRA]B- to the INR8.00- crore term loan and INR2.00-crore cash-credit facilities of Sona Beverages Private Limited. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 10.00 [ICRA]B-(Stable); Assigned Rationale The assigned rating takes into account SBPL's weak financial profile, characterised by losses at the net level. The rating also factors in the leveraged capital structure, leading to a high gearing of 2.46 times in FY2017 and subdued coverage indicators. The rating is further constrained by insufficient internal cash accruals to service the debt repayments, thus adversely impacting liquidity position and leading to continuous dependence on cash infusion from promoters. ICRA notes that the extensive advertising and promotion expenses incurred by SBPL for promotion of its own brands impact profitability and is likely to keep the liquidity position stretched, at least in the near term. SBPL also remains exposed to regulatory risks associated with the liquor business, which include changes in the policies governing the industry such as revision of tax rates, ban on liquor consumption etc. The rating, however, derives comfort from the long experience of the promoters in the liquor business and SBPL's position as the sole manufacturer of beer in Chhattisgarh. The rating also favourably factors in the increasing trend in sales volumes of SBPL's own brands on the back of growing demand in Chhattisgarh and launch of its products in other states. ICRA notes that the company's long-term contract-manufacturing agreements with SabMiller and Kaama Breweries, containing minimum guarantee volume clauses, provide stability to revenues to an extent. Outlook: Stable ICRA believes that SBPL will continue to benefit from the long experience of its promoters. 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 significant debt-repayment obligations, or stretch in the working-capital cycle, further weakens the liquidity. Key rating drivers Credit strengths Experience of promoters in the liquor industry and sole manufacturer of beer in Chhattisgarh: The promoters of the company have long experience of over two decades in the alcoholic beverage industry. One of the promoters, Mr. Satpal Singh Bhatia owns around 40 liquor shops in Chhattisgarh. Further, SBPL is the first and the sole manufacturer of beer in Chhattisgarh. Increasing trend in sale volumes of own brands: SBPL manufactures beer under its two registered brands, Simba (started in FY2015) and Sumo (started in FY2017). The company's sale volume of its own brands has increased from 1.67 lakh cases in FY2017 to 3.84 lakh cases in H1 FY2018 on the back of extensive marketing expenditure and launch of new variations of its products in the market. Contract-bottling agreements with minimum guaranteed volume provides stability to the revenues to an extent: SBPL carries out processing and bottling of beer for two parties - SabMiller and Kaama Breweries. The contracts with these parties carry minimum guaranteed volume clauses and it is entitled to receive liquidated damages in case the parties do not off take the guaranteed amount, thus, providing stability to the company's revenues to an extent. Credit challenges Weak financial profile characterised by losses at the net level; leveraged capital structure and weak coverage indicators: The capital structure of the firm remained leveraged, as depicted by a gearing of 2.46 times as on March 31, 2017. High debt levels, coupled with low profitability kept the coverage indicators subdued with DSCR at 0.59 times in FY2017 (1.14 times in FY2016) and Total Debt/OPBDITA of 20.50 times in FY2017 (9.83 times in FY2016). Further, the company continued to incur losses at the net level up to FY2017, however, some improvement is expected in FY2018. Significant debt-servicing obligations likely to keep cash flows under pressure: ICRA notes that the company has significant debt- servicing obligations compared to its current cash accruals from the business, which tightens the liquidity position and leads to continuous dependence on cash infusion from promoters. Considerable advertisement expenditure impacts profitability: SBPL has incurred considerable advertisement, designing, labelling and promotion expenditure for its own brands in FY2017 which resulted in a fall in OPBDITA from INR4.56 crore in FY2016 to INR2.44 crore in FY2017 despite a slight increase in revenue from INR32.27 crore in FY2016 to INR33.70 crore in FY2017. Extensive sales promotion expenses to achieve brand recognition is expected to continue in the near future, given the initial stages of the company's product, as well as plans to launch the brand in other states. Exposed to regulatory changes: SBPL, like other players in the liquor business, remains exposed to changes in the legal and regulatory environment such as revision of tax rates, ban on liquor sale etc. Incorporated in 2006, Sona Beverages Private Limited (SBPL) manufactures beer and its brewery is located at Borai Industrial Area in Durg district of Chhattisgarh. The installed capacity of the plant is 3,00,000 hecto litre (HL) per annum. The manufacturing operations of the company started in April 2014 and at present, SBPL has contract-bottling agreements with SAB Miller India Ltd. and Kaama Breweries Pvt. Ltd. Besides, SBPL manufactures beer under its own brands, Simba and Sumo. TIRUPATI COTTON: CARE Reaffirms B+ Rating on INR9.48cr Loan ----------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Tirupati Cotton Corporation (TCC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.48 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating of TCC continues to remain constrained on account of its presence in the lowest segment of the textile value chain and in the highly competitive and fragmented cotton ginning industry and seasonality associated with the cotton industry leads to fluctuations in the cotton prices and vulnerability to margins. The rating is, further, continues to remain constrained on account of nascent stage of operations with its financial risk profile marked by thin profitability margins, weak solvency position and moderate liquidity position and constitution as a partnership concern. The rating, however, continue to favourably takes into account experienced promoters in the cotton ginning industry, established relations with customers and suppliers through group companies and its location advantage being situated in cotton growing region. Ability of the firm to successfully stabilize its operations and achieve envisaged level of Total Operating Income (TOI) and profitability with improvement in solvency position and better management of working capital would be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weakness Initial Stage of Operations with thin profitability margins: The firm undertook a Greenfield project to set up plant for cotton ginning and processing. The project has been completed within estimated cost and time parameters by the firm. It has started its commercial productions from January 01, 2017. During FY17, the firm has achieved TOI of INR36.30 crore. However, the profitability of the firm stood thin with PBILDT and PAT margin of 2.26% and 0.65% respectively in FY17. GCA of the firm also stood low with 0.52 lakh in FY17. Weak Solvency Position and moderate liquidity position: The capital structure of TCC stood weak with an overall gearing of 6.08 times as on March 31, 2017, owing to higher unsecured loan of INR 3.47 crore from promoters as well as higher utilization of working capital bank borrowings as on balance sheet date. Further, debt service coverage indicators of TCC stood weak with total debt to GCA of 25.05 times as on March 31, 2017 mainly on account of higher total debt. Furthermore, interest coverage ratio stood moderate at 2.74 times in FY17. The liquidity position of the firm stood moderate with operating cycle of 52 days in FY17. Further, the current ratio of the firm stood moderate at 1.43 times whereas quick ratio stood below unity at 0.86 times as on March 31, 2017. Operating margins susceptible to cotton price fluctuation and seasonality associated with the cotton industry: Operations of cotton business are seasonal in nature, as sowing season is done during March to July and harvesting cycle (peak season) is spread from November to February every year. Prices of raw material i.e. raw cotton are highly volatile in nature and depend upon factors like monsoon condition, area under production, yield for the year, international demand supply scenario, export policy decided by government and inventory carried forward of the last year. Ginners usually have to procure raw materials at significantly higher volume to bargain bulk discount from suppliers. Furthermore, cotton being a seasonal crop, the inventory levels of the entity generally remains high at the end of the financial year. Thus, aggregate effect of both the above factors results in exposure of ginners to price volatility risk. Presence in the lowest segment of the textile value chain and in a highly fragmented cotton ginning industry: High proportion of small scale units operating in cotton ginning and pressing industry has resulted in fragmented nature of industry leading to intense competition amongst the players. As TCC operates in this highly fragmented industry wherein large numbers of un-organized players are also present, it has very low bargaining power against both its customers as well as its suppliers. This coupled with limited value addition in cotton ginning process results in the firm operating at very thin profitability (PAT) margins. Key Rating Strength Experienced promoters in the textile and cotton ginning industry and established relations with customers and suppliers through group companies: Mr. Anant Kumar Tayal and Mr. Tushar Pathak, partners, looks after overall affairs of the firm and have around one decade of experience in the processing of cotton ginning and pressing. Being present in the industry since long period of time, it has established relationship with customers and suppliers. Strategically located in the cotton growing region: Gujarat, Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh and Tamil Nadu are the major cotton producers in India. The plant of TCC is located in one of the cotton producing belt of Telangana (Andhra Pradesh) in India. The presence of TCC in cotton producing region results in benefit derived from lower logistics expenditure (both on transportation and storage), easy availability and procurement of raw materials at effective price. Sendhwa (Madhya Pradesh) based Tirupati Cotton Corporation (TCC) was incorporated in April 22, 2016 by Mr. Anant Kumar Tayal, Mrs Namita Tayal and Mr. Tushar Pathak. The firm is engaged in the business of cotton ginning and pressing at Ralkode Mandal, Telangana, Andhra Pradesh. The plant of the firm will have installed capacity to manufacture cotton bales of 350 Bales per Day (BPD). It procures raw cotton directly from local mandis. TORQUE AUTOMOTIVE: Ind-Ra Assigns BB+ LT Rating to INR380MM Loan ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Torque Automotive Private Limited (TAPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is as follows: -- INR380 mil. Fund-based facilities assigned with IND BB+/Stable/IND A4+ ratings. KEY RATING DRIVERS The ratings reflect TAPL's weak credit metrics and EBITDA margin owing to the working capital-intensive nature of operations and intense competition in the car dealership business. In FY17, net leverage (net adjusted debt/operating EBITDAR) improved to 4.9x (FY16: 5.8x) due to the scheduled repayment of its term loan, while interest coverage (operating EBITDA/gross interest expense) deteriorated to 1.1x (1.4x) primarily owing to an increase in gross interest expenses. EBITDA margin declined marginally to 6.7% in FY17 from 6.9% in FY16 on account of an increase in direct expenses. The ratings also reflect TAPL's tight liquidity, as TAPL almost fully utilized the fund-based facilities over the 12 month ended January 2018. The tight liquidity was owing to an increase in the scale of operations. However, the working capital limits remain at the same level, as the company is able to efficiently manage the working capital cycle (FY17: 76 days; FY16: 93 days). The ratings, however, are supported by TAPL's large scale of operations. TAPL's revenue rose to INR2,847 million in FY17 from INR2,384 million in FY16 on account of stable demand for passenger vehicles and customer preference for high-end cars. The ratings are also supported by the promoters' experience of over 10 years in automobile dealership and TAPL's established position as an authorized dealer of cars manufactured by Skoda Automotive India Private Limited, a leading player in the passenger vehicle segment, in Gujarat. RATING SENSITIVITIES Negative: A decline in EBITDA margin leading to deterioration in the overall credit metrics on sustained basis will lead to negative rating action. Positive: A rise in revenue and EBITDA margin leading to an improvement in the overall credit metrics on a sustained basis will lead to positive rating action. COMPANY PROFILE Established in 2007, TAPL is an authorized dealer of cars manufactured by Skoda Automotive India in Gujarat. TAPL has four showrooms and four service centers across the state. VADSOLA CERAMIC: ICRA Keeps B Ratings in Not Cooperating Cat. ------------------------------------------------------------- ICRA Ratings said the ratings of INR11.50 crore bank facilities of Vadsola Ceramic continue to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable) / A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- Cash Credit 3.00 [ICRA]B (Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund based- 7.00 [ICRA]B (Stable); ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non-fund based- 1.50 [ICRA]A4; ISSUER NOT Bank Guarantee COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Earlier, the ratings were moved to 'Issuer Not Cooperating' due to non submission of No Default Statement; however, ICRA has received the No Default Statement now. The rating is based on limited information on the entity's performance since the time it was last rated in August 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Vadsola Ceramic, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Vadsola Ceramic (VC) was established in August 2013 as a partnership concern. Later, the partnership was reconstituted in FY2016 and at present the firm has eight partners. The firm has commenced commercial operations from September 2014 and currently manufactures digitally-printed wall tiles which have wide usage for commercial as well as domestic buildings. The plant is located in Morbi, Gujarat with an installed capacity of 12,000 Metric Tonnes Per Annum (MTPA) for digitally printed ceramic glazed wall tiles. It commenced operations with two sizes of tiles i.e. 10"X15" and 9"X24". Since January 2016, it has added another size of wall tiles i.e. 12"X18" to the existing tile types. The key promoters, namely Mr. Kunvarji Vadsola and Mr. Dhanji Vadsola, have more than two decades of experience in the related field. VENKY HI: ICRA Keeps B+ Rating in Not Cooperating Category ---------------------------------------------------------- ICRA Ratings said the ratings for the INR30.00 crore bank facilities of Venky Hi Tech Ispat Ltd continue to remain under 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 24.00 [ICRA]B+(Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non-fund based 1.50 [ICRA]A4 ISSUER NOT limit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 4.50 [ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' Category 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. The current rating action has been taken by ICRA basis 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. Venky Hi Tech Ispat Ltd was incorporated in December 2003 and currently has 36,000 tons per annum (tpa) ingot and 84,000 tpa thermo-mechanically treated manufacturing facility at Durgapur, West Bengal. The company also started manufacturing billets from February 2015. VIDEOCON TELECOM: CARE Reaffirms D Rating on INR2562.50cr Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Videocon Telecommunications Limited (VTL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2,562.50 CARE D; Issuer not Facilities- cooperating; Reaffirmed on Term Loan the basis of best available information Long Term Bank 644.92 CARE D; Issuer not Facilities-BG cooperating; Reaffirmed on the basis of best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from VTL to monitor the rating vide e-mail communications/letters dated Jan 19, 2018; Feb 20, 2018; Feb 21, 2018; Feb 23, 2018; Feb 26, 2018 and February 27, 2018 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Videocon Telecommunications Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Videocon Telecommunications Limited bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on April 18, 2017, the following were the rating strengths and weaknesses: Key Rating Strengths Strong promoter group along with continuous support in the form of equity infusion: VTL is a part of the Videocon Group. The Videocon Group is global business conglomerate with a presence in Consumer Electronics & Home Appliances (CE&HA), Oil & Gas (O&G), Retail, Telecom, DTH and the Power sector. The Group was rated among India's Top 15 Business Houses according to a Boston Consulting Group study. During FY16, the promoters have done equity infusion of INR800 crore (INR921 crore in FY15) in the company furthermore; the promoters have infused funds to the tune of INR6500 crore in last four years to fund the losses and repayment obligations of the company. Diversified product offerings: VTL has NLD/ILD license which allows the Company to offer long-distance domestic as well as international calls in all 22 circles across India. The Company is operating NLD Services and terminating ILD traffic on its own NLD network across India. Key Rating Weaknesses Delay in interest servicing and debt repayment: VTL was granted the license for providing Unified Access Services (UAS) in 21 circles by the Department of Telecommunications, Government of India (DoT) in 2008 and was also allotted spectrum in 20 circles. The Hon'ble Supreme Court of India, vide its judgment dated February 02, 2012, quashed all the UAS license granted on or after January 10, 2008, and subsequent allocation of spectrum to these licenses, which also included the 21 UAS licenses granted to the company and the spectrum allotted to it. Owing to the cancellation of licenses and closure of its operations in 8 circles; it faced huge losses and severe liquidity crunch and was not in position to repay the debt on time. Videocon Telecommunication Limited (VTL) was incorporated as Datacom Solutions Private Limited on June 7, 2007 and in 2009 was renamed as Videocon Telecommunications Limited. VTL is a Videocon Group company; the flagship company of the group is Videocon Industries Limited. During H1FY17, VTL has closed its GSM business. VTL had entered into agreement to transfer right to use of its spectrum to Bharti Airtel Limited in all the six circles in FY16. The transaction was completed in May-2016. VTL also has National Long Distance (NLD)/International Long Distance (ILD) license which allows the company to offer long- distance domestic as well as international calls across India. ================= I N D O N E S I A ================= MATAHARI PUTRA: Moody's Lowers CFR to B2 & Alters Outlook to Neg. ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Matahari Putra Prima Tbk (P.T.) (MPPA) to B2 from B1. At the same time, Moody's has changed MPPA's rating outlook to negative from stable. RATINGS RATIONALE "The downgrade is due to MPPA's operating performance being materially weaker than Moody's previous expectations given its increased borrowings and negative earnings, with credit metrics unlikely to improve in the near term. As a result, MPPAs rating is more appropriately positioned at the B2 level," says Maisam Hasnain, a Moody's Analyst. Aggressive price discounts to boost revenue growth, and one-time expenses associated with cost reductions will temper MPPA's profitability over the next 12-15 months, as the company embarks on a strategy to revive its operating performance. Because of its weaker earnings, Moody's expects that MPPA will need to rely on incremental debt to fund its working capital needs -- a considerable shift in strategy from previous years where MPPA had limited reliance on bank debt to fund its operations. During the third quarter of 2017, MPPA increased its reported debt by around 50% to IDR1.3 trillion to help fund its operations. As a result, its adjusted leverage -- as measured by adjusted debt to EBITDA -- increased to 6.7x for the 12 months ended September 30, 2017 from 4.4x in the previous quarter. Moody's expects MPPA's leverage to remain around 5.5x -- 6.5x over the next two years. Consequently, MPPA's financial profile is no longer in line with Moody's expectations for its B1 rating. Moody's also expects MPPA to generate negative reported EBITDA for the full year ended December 31, 2017. MPPA will therefore likely not meet some of the financials maintenance covenants on its bank loans when they are tested for the year ended December 2017. However, Moody's expects that MPPA will obtain waivers from its banks, given its established banking relationships, and also because its debt on a reported basis is still only equivalent to 39% of its total book capitalization. "While Moody's expect MPPA to obtain covenant waivers from its banks, a failure to do so will result in further negative rating action," adds Hasnain, who is also Moody's Lead Analyst for MPPA. The negative outlook reflects MPPA's weakening liquidity position despite its plans to complete its IDR802 billion rights issue by April 2018, with the proceeds used to primarily fund working capital. However, despite the proceeds from the rights issue, Moody's estimates that MPPA's cash sources will be insufficient to meet all its cash needs through December 2018, primarily because the majority of its working capital facilities come due in December. Nevertheless, Moody's notes that MPPA has a track record of renewing these facilities when they come due. Based on the negative rating outlook, MPPA's rating will unlikely be upgraded over the next 12-18 months. However, the outlook could be revised to stable, if MPPA revives its operating performance with sustained improvement in credit metrics, while complying with its financial covenants and extending its debt maturities. The rating could be downgraded if: (1) its strategies to revive operational performance are unsuccessful; (2) the company delays its rights issue plans or is unable to extend its debt maturities; (3) MPPA shows evidence of cash leakage to fund affiliated companies; or (4) MPPA adopts more aggressive shareholder return policies, thereby weakening its liquidity position or causing it to incur additional debt. Credit metrics indicative of a rating downgrade include: (1) an inability to reverse declining operating margins; (2) adjusted debt to EBITDA above 6.5x; and (3) adjusted EBIT to interest below 1.0x on a sustained basis. The principal methodology used in this rating was Retail Industry published in October 2015. Matahari Putra Prima Tbk (P.T.) (MPPA) is a leading retailer in Indonesia with multiple retail formats. At September 30, 2017, the company operated in more than 70 Indonesian cities through 117 Hypermarts, 25 Foodmarts, 31 Express stores, 108 Boston Health & Beauty and 4 SmartClub wholesale outlets. PT Multipolar Tbk, a holding company that owns majority stakes in retail, technology, media, and real estate investment companies in Indonesia and China, owns a 50.2% stake in MPPA. Temasek Holdings (Private) Limited (Aaa stable), through its subsidiary, Anderson Investment Pte. Ltd., has exchangeable rights in MPPA. If such rights are exchanged in full, they represent a 26.1% stake in MPPA. =============== M A L A Y S I A =============== PRIME GLOBAL: Delays Jan. 31 Quarterly Report --------------------------------------------- Prime Global Capital Group Incorporated notified the Securities and Exchange Commission via a Form 12b-25 that it will delayed in filing its quarterly report on Form 10-Q for the period ended Jan. 31, 2018. The Company said it was unable to file the subject report in a timely manner because it was not able to timely complete its financial statements without unreasonable effort or expense. About Prime Global Kuala Lumpur, Malaysia-based Prime Global Capital Group Inc (OTCBB:PGCG) -- www. http://www.pgcg.cc/-- is engaged in the operation of a durian plantation, leasing and development of the operation of an oil palm plantation, commercial and residential real estate properties. Prime Global reported a net loss of US$960,069 on US$1.26 million of net total revenues for the year ended Oct. 31, 2017, compared to a net loss of US$911,522 on US$1.64 million of net total revenues for the year ended Oct. 31, 2016. As of Oct. 31, 2017, Prime Global had US$44.51 million in total assets, US$17.22 million in total liabilities, and US$27.28 million in total equity. ShineWing Australia, in Melbourne, Australia, issued a "going concern" opinion in its report on the Company's consolidated financial statements for the year ended Oct. 31, 2017, noting that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Oct. 31, 2017. All these factors raise substantial doubt about its ability to continue as a going concern. ==================== N E W Z E A L A N D ==================== SOLID ENERGY: Enters Final Stages of Liquidation Process -------------------------------------------------------- Luke Kirkness of NZ Herald reports that Solid Energy New Zealand has entered the final stages of being wound up by going into solvent liquidation. According to NZ Herald, the state-owned enterprise entered voluntary liquidation in 2015 after owing NZ$400 million to its creditors. In 2015, the creditors voted for a deed of company arrangement (DOCA) that would see them and Solid Energy's employees paid in full over the next two and a half years, NZ Herald relates. "All the assets and things have been realised and its gone into solvent liquidation for the final wind up of Solid Energy," the report quotes Brendon Gibson of KordaMentha as saying. NZ Herald notes that Solid Energy first started its downward spiral in 2013 when global coal costs plummeted, exposing its commercial error in carrying substantial debt on its balance sheet. Mr. Gibson said that they were finalising the wind up of companies that would soon be taken off the New Zealand Companies Office, NZ Herald adds. About Solid Energy Solid Energy New Zealand Ltd was New Zealand's largest coal mining company and an investor in research and commercialisation of sustainable forms of energy that use coal, coal seam gas, biomass, biodiesel and solar. Solid Energy's core mining business includes hard coking coal, primarily for export to steel mills throughout Asia, and thermal coal for the Huntly power station and other domestic customers in the steel, dairy and cement industries. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 13, 2015, the Board of Solid Energy New Zealand Limited (SENZ) has placed the company and all associated companies into voluntary administration, a process which allows the company to continue trading while creditors consider the best way forward. KordaMentha partners, Brendon Gibson and Grant Graham have been appointed Administrators. Creditors of the Solid Energy Group on Sept. 17, 2015, approved a Deed of Company Arrangement (DOCA) with the Group. Administrator Brendon Gibson said the result cleared the path for the Group to move on with the process of realising its assets, under the full control of its Board of Directors. ================= S I N G A P O R E ================= YUUZOO CORP: Cites Impossible Timeframe for Auditors to Make Call ----------------------------------------------------------------- The Business Times reports that YUUZOO Corporation Limited, which saw a suspension in its shares by the Singapore Exchange (SGX) on March 19, clarified on March 22 that it was due to an "impossible" timeframe given for it to put together material required by auditors RT LLP. The company had missed a deadline by the SGX, under a notice of compliance, to disclose its auditors' opinion on certain items in its latest financial statements by March 19, the report says. According to The Business Times, YuuZoo said that upon receiving the notice, it contacted RT LLP. The auditors informed the company that in order to reply to the SGX queries, they required complete business plans and five-year discounted cash flow analysis for all of YuuZoo's 46 franchisees by March 8. The auditors also required 10 days to review the complete material, the report notes. As it was "impossible" to complete the above in the timeframe given, YuuZoo asked the SGX for an extension until the end of March, but the request was rejected on March 13, 2018, the report relays. The Business Times relates that YuuZoo said that despite the events, it "did all in its power" to supply the auditors with the information and material related. YuuZoo was only able to hand over the final documents to RT LLP on March 19. In a meeting held on March 19 between YuuZoo and the auditors, RT LLP had agreed to review the documents supplied no later than by March 28, said YuuZoo. Before an announcement could be made on this matter, the SGX had issued a statement that trading in YuuZoo's shares had been suspended with immediate effect, The Business Times adds. YuuZoo Corporation Limited, an investment holding company, engages in social networking, e-commerce, payments, and gaming businesses in Singapore and internationally. ==================== S O U T H K O R E A ==================== KUMHO TIRE: Purchase is Win-Win Partnership, Doublestar Head Says ----------------------------------------------------------------- Yonhap News Agency reports that the chief of Qingdao Doublestar Co. said March 22 that the Chinese company's acquisition of Kumho Tire Co. is a "win-win partnership" that goes far beyond the sharing of production knowhow. "By acquiring Kumho Tire, Doublestar aims to seek co-prosperity and to become a global top-10 tiremaker through close cooperation. Kumho Tire will focus on mid and high-end tires for passenger vehicles, and Doublestar will focus on mid and low-end tires for trucks and buses," Yonhap quotes Doublestar Chairman Chai Yongsen as saying at a press conference in Seoul. Kumho Tire will operate as an independent business entity in South Korea, as Doublestar has no intention of controlling or intervening in the making of major decisions at the tiremaker, the chairman, as cited by Yonhap, said. To move forward with the proposed acquisition deal, approval from the union is essential. So Doublestar hopes to meet the union's representatives to explain its plans for investment in Kumho Tire, he said, Yonhap relays. "If Doublestar submits documents regarding investments (in Kumho Tire) and job security (of the company's 3,100 unionized workers) to the union, we will review them first and then decide on whether to have a meeting with the Chinese company if their suggestions are acceptable," a union spokesman said over the phone. According to the report, the union has asked for the documents from Doublestar through the state-run Korea Development Bank (KDB), the main creditor of the financially troubled Kumho Tire, the spokesman said. Yonhap relates that the state lender said it will provide all requested materials to the union and that Chai will travel to Gwangju, 330 kilometers southwest of Seoul, home to Kumho Tire's main domestic plant, Thursday evening [March 22] for a possible meeting with union leaders today, March 23. Kumho Tire has eight plants -- three in South Korea, three in China, one in Vietnam and one in the United States -- with a combined production capacity of 54.64 million tires. In the past three years, Kumho Tire, the country's second-biggest tiremaker by sales, has posted net losses due to lower demand and poor performances in China. Its net losses deepened to 88.6 billion won (US$83 million) in 2017 from 37.9 billion won a year earlier though last year's net result slightly improved from a net loss of 67.5 billion won in 2015. Kumho Tire faces 1.2 trillion won worth of debts maturing at the end of this month. The entire debt the tiremaker owes to creditors has been extended since late last year, a KDB spokesman said. Yonhap notes that the KDB has recently concluded that the only option to revive the loss-making company is to sell it to Doublestar. According to Yonhap, the policy lender has asked Kumho Tire and its union to reach an agreement to accept the Chinese firm's investment in the company by March 30. Unless the union agrees to the company's M&A plan and accepts reductions in wages and some work benefits by the end of this month, Kumho Tire will be placed under court receivership, the KDB said, Yonhap relays. "If the union accepts our investment proposals, we will immediately inject the promised cash into Kumho Tire to help put it back on track," the chairman, as cited by Yonhap, said. Doublestar, China's biggest tiremaker, has offered to invest 646.3 billion won (US$603.4 million) in new Kumho Tire shares, which would allow the Chinese tiremaker to become the biggest shareholder, with a stake of 45 percent, and the KDB-led creditors to collectively own a 23.1 percent stake, Yonhap discloses. Yonhap adds that the Chinese tiremaker has also pledged to invest 200 billion won in the tiremaker's production facilities while guaranteeing three years of job security for current union workers. "As for the three-year job guarantee, it just followed the expression recommended in international M&A deals and does not necessarily mean a massive shutdown of plants or massive layoffs three years later," the report quotes Chai as saying. ********* 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 ***