/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180406.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, April 6, 2018, Vol. 21, No. 068 Headlines A U S T R A L I A ARAN AUSTRALIA: Second Creditors' Meeting Set for April 13 AUSTRALIAN HOSPITALITY: First Creditors' Meeting Set for April 16 ELITE CONSTRUCTION: Second Creditors' Meeting Set for April 12 IMPRESSION SOLUTIONS: Second Creditors' Meeting Set for April 16 MEMBERS ALLIANCE: ASIC Gets Freezing Orders Over Directors Assets OROTONGROUP LTD: Creditors Accept Purchase Plan by Will Vicars PAMADA PTY: Second Creditors' Meeting Set for April 12 RCM GROUP: First Creditors' Meeting Set for April 16 SURFSTITCH GROUP: Creditors Back Alceon's EziBuy Offer TUPS COMPANY: Second Creditors' Meeting Set for April 13 * Australian Auto ABS and RMBS Delinquencies Rise in January 2018 C H I N A CHINA EVERGRANDE: S&P Alters Outlook to Positive & Affirms B ICR SEVEN STARS: Narrows Net Loss to $10.2 Million in 2017 I N D I A ALOK INDUSTRIES: Banks Seek to Wind Up Two India Firms ALTAIR POWER: Ind-Ra Migrates 'B-' LT Rating to Non-Cooperating AMRAPALI SMART: CARE Moves D Rating to Not Cooperating Category ANTONY MOTORS: ICRA Keeps B+ Ratings in Not Cooperating Category ATUL SHARMA: Ind-Ra Keeps 'BB-' Rating in Non-Cooperating Cat. BAMBINO PASTA: Ind-Ra Raises Long Term Issuer Rating to BB+ BHARAT SPUN: CARE Lowers Rating on INR20cr Bank Loan to D BHOLA RAM: Ind-Ra Migrates BB LT Issuer Rating to Non-Cooperating BINANI CEMENT: Lenders Entertain Birla's Last-Minute $1.1BB Bid BN INDUSTRIES: Ind-Ra Affirms B+ LT Issuer Rating, Outlook Stable BNSR INDUSTRIES: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating CATVISION LIMITED: Ind-Ra Affirms BB+ LT Rating, Outlook Stable DIGHI PORT: CARE Moves D Rating to Not Cooperating Category DQ ENTERTAINMENT: CARE Moves D Rating to Not Cooperating Category FINOLITE CERAMIC: ICRA Keeps B/A4 Ratings in Not Cooperating Cat. FRONTIER WAREHOUSING: Ind-Ra Moves BB+ Rating to Non-Cooperating GAYATRI PROJECTS: CARE Lowers Rating on INR4594.03cr Loan to D GUJARAT INFRAPIPES: CARE Lowers Rating on INR38.90cr Loan to D H R BUILDERS: ICRA Keeps B+ Rating in Not Cooperating Category HILL STONE: ICRA Moves B+ Rating to Not Cooperating Category JAIN VINIMAY: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating KARTIKEY RESORTS: ICRA Moves D Rating to Not Cooperating Cat. LALL MINERALS: Ind-Ra Assigns BB- LT Rating, Outlook Stable LIFESTILE REALTY: ICRA Keeps B Rating in Not Cooperating Category LINUS PROCESSORS: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating LOGIX SOFT-TEL: ICRA Withdraws B+ Rating on INR400cr Loan MCNALLY BHARAT: CARE Moves D Rating to Not Cooperating Category MEHADIA SALES: Ind-Ra Maintains 'D' Rating in Non-Cooperating MOOKAMBIKA CONST: Ind-Ra Assigns BB+ LT Rating on INR138MM Limits PUNJAB BIOMASS: CARE Moves D Rating to Not Cooperating Category R.P. MOTORS: ICRA Keeps 'B' Rating in Not Cooperating Category RAJARAM FLOUR: ICRA Lowers Rating on INR12cr LT Loan to D RAJSHRI IRON: Ind-Ra Migrates B Issuer Rating to Non-Cooperating RELIABLE SPACES: ICRA Moves B+ Rating to Not Cooperating Category SIDDHI GANESH: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating SIDDHARTHA BUILDHOME: CARE Moves D Rating to Not Cooperating SINHGAD TECHNICAL: CARE Moves D Rating to Not Cooperating Cat. SRI VENKATESWARA: ICRA Reaffirms B+ Rating on INR8.25cr Loan SUKATA TRACTOR: Ind-Ra Assigns B+ LT Rating, Outlook Stable SURYA FOODS: ICRA Keeps 'B' Rating in Not Cooperating Category TIRUPATI STARCH: Ind-Ra Migrates BB LT Rating to Non-Cooperating UJALA MINERALS: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ULTRA HOME: CARE Migrates D Rating to Not Cooperating Category VAGDEVI FOOD: ICRA Assigns B+ Ratings to INR32cr Loans VIJAI MAHALAXMI: Ind-Ra Migrates 'D' Rating to Non-Cooperating VIJAY SHEETS: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable VISITOR GARMENTS: Ind-Ra Keeps 'BB' Rating in Non-Cooperating Cat. M A L A Y S I A BERTAM ALLIANCE: Bursa Denies Bid to Waive PN17 Classification S I N G A P O R E UTAC HOLDINGS: To Explore $1 Billion Sale of Business V I E T N A M VIETNAM: Credit Profile Reflects Robust Growth, Moody's Says - - - - - ================= A U S T R A L I A ================= ARAN AUSTRALIA: Second Creditors' Meeting Set for April 13 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Aran Australia Projects Pty Ltd has been set for April 13, 2018, at 12:00 noon at the offices of PA Lucas & Co Pty Ltd, Level 4, 232 Adelaide 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 April 12, 2018, at 4:00 p.m. Peter Anthony Lucas of P A Lucas & Co was appointed as administrator of Aran Australia on Feb. 28, 2018. AUSTRALIAN HOSPITALITY: First Creditors' Meeting Set for April 16 ----------------------------------------------------------------- A first meeting of the creditors in the proceedings of Australian Hospitality Pty Ltd will be held at Level 25, One International Towers Sydney, 100 Barangaroo Avenue, in Barangaroo, New South Wales, on April 16, 2018, at 11:00 a.m. Robyn Louise Duggan and Morgan Kelly of Ferrier Hodgson were appointed as administrators of Australian Hospitality on April 4, 2018. ELITE CONSTRUCTION: Second Creditors' Meeting Set for April 12 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Elite Construction Services Pty Ltd has been set for April 12 at 11:00 a.m. at the offices of BPS Recovery, Level 18, 201 Kent Street, in Sydney, NSW, on April 12, 2018, at 11:00 a.m. 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 April 11, 2018, at 4:00 p.m. Daniel John Frisken of BPS Recovery was appointed as administrator of Elite Construction on Feb. 27, 2018. IMPRESSION SOLUTIONS: Second Creditors' Meeting Set for April 16 ---------------------------------------------------------------- A second meeting of creditors in the proceedings of Impression Solutions (Australia) Pty Ltd has been set for April 16, 2018, at 10:00 a.m. at Level 3, 140 Bundall Road, in Bundall, 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 April 13, 2018, at 4:00 p.m. Glenn Thomas O'Kearney of GT Advisory was appointed as administrator of Impression Solutions on March 1, 2018. MEMBERS ALLIANCE: ASIC Gets Freezing Orders Over Directors Assets ----------------------------------------------------------------- The Australian Securities and Investments Commission has obtained orders from the Supreme Court of Queensland restraining Deborah Marlborough from dealing with real properties held in her name, which ASIC suspects have been funded by or maintained by monies obtained from the Members Alliance Group and the Benchmark Group of companies. Mrs. Marlborough is restrained from selling, charging, mortgaging or otherwise dealing with, disposing and/or diminishing the value of the following real properties: - 8441 Magnolia Drive East, Hope Island, Queensland 4212 (being Lot 70 on registered plan GTP107095); - 8442 Magnolia Drive East, Hope Island, Queensland 4212 (being lot 71 on registered plan GTP107095); - 8443 Magnolia Drive East, Hope Island, Queensland 4212 (being lot 72 on registered plan GTP107095); and - Unit 1, 22 Eurimbula Court, Paradise Point, Queensland 4216 (being lot 1 on registered plan BUP6065). Mr. Richard Marlborough, the husband of Mrs. Marlborough, is also restrained from selling, charging, mortgaging or otherwise dealing with, disposing and/or diminishing the value of a Rolls Royce Wraith 665C black coupe 2014 with vehicle registration DLM02. The orders, made on March 16, 2018, were obtained by consent pending a hearing of ASIC's application on April 27, 2018. The Members Alliance Group was a group of companies operating on the Gold Coast, which went into external administration in July 2016. On July 13, 2017, Jason Bettles and Raj Khatri of Worrells themselves sought and obtained orders from the Supreme Court to be replaced as liquidators of a number of Members Alliance Group companies by Michael McCann of Grant Thornton. On Nov. 3, 2017, ASIC successfully applied to the Supreme Court of Queensland to appoint provisional liquidators to five companies within the Benchmark Private Wealth Group, a group of companies related to the Members Alliances Group. OROTONGROUP LTD: Creditors Accept Purchase Plan by Will Vicars -------------------------------------------------------------- Power Retail reports creditors of collapsed Oroton Group voted in favor of the deed of company arrangement (DOCA) put forward by fund manager Will Vicars to purchase the business. Oroton was placed into voluntary administration in November last year following a series of earnings downgrade blows and plummeting sales. "The flexibility of the voluntary administration process enhances the ability to further restructure Oroton Group in a manner which makes it possible to achieve the best possible outcome in these circumstances," the report quotes administrator Vaughan Strawbridge from Deloitte Restructuring Services as saying at the time. "Our ambition is that a stronger Oroton business will emerge from this process." The AUD25 million proposal to purchase the business is going ahead. Unsecured creditors will receive 36-58 cents on the dollar under the DOCA. "Based on our recommendation, creditors have voted to support the Vicars proposal. It will deliver a better outcome compared to other offers received, including the best possible financial return as well," Mr. Strawbridge said in a statement after the second creditors' meeting last week, Power Retail relays. According to the report, there were 40 offers put forward to purchase the business, however administrators had recommended the Vicars' deal, stating that it was superior to other offers and would ensure the best possible return for creditors via a recapitalised business, providing ongoing roles for employees and continuing relationships with suppliers, landlords and other stakeholders. The court process is expected to take approximately two months to complete now that the DOCA has been approved by creditors, the report adds. OrotonGroup Limited (ASX:ORL) -- http://www.orotongroup.com.au/ -- is an Australia-based retail company. The Company's segments include Oroton and Gap brands. The Company is engaged in retailing and wholesaling of leather goods, fashion apparel and related accessories under the OROTON brand. It is engaged in retailing of fashion apparel under the GAP label. It is also engaged in licensing of the OROTON brand name. The Company operates over 80 stores across Australia, New Zealand, Singapore, Malaysia and China. Its Gap brand includes GapKids and babyGap, and offers wardrobe essentials. Its Oroton sells a range of products for men and women. Oroton's offerings for women include bags, wallets, jewelry, beauty, gifts, sunglasses and accessories. Its offerings for men include bags, wallets, accessories, apparel, sunglasses and gifts. The Company has a presence as a multi-channel retailer, including online, first retail stores, concessions, factory outlets and wholesale for both owned brand and licensed partnerships. Vaughan Neil Strawbridge of Deloitte was appointed as administrators of OrotonGroup on Nov. 30, 2017. PAMADA PTY: Second Creditors' Meeting Set for April 12 ------------------------------------------------------ A second meeting of creditors in the proceedings of Pamada Pty Ltd has been set for April 12, 2018, at 11:00 a.m. at the offices of PPB Advisory, Level 7, 8 Chifley, 8-12 Chifley Square, in Sydney, New South Wales. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 11, 2018, at 5:00 p.m. Daniel Austin Walley and Andrew John Scott of Pamada Pty were appointed as administrators of Pamada Pty on March 2, 2018. RCM GROUP: First Creditors' Meeting Set for April 16 ---------------------------------------------------- A first meeting of the creditors in the proceedings of RCM Group Pty. Limited will be held at the offices of Farnsworth Shepard Level 5, 2 Barrack Street, in Sydney, NSW, on April 16, 2018, at 10:00 a.m. Adam Edward Farnsworth of Farnsworth Shepard was appointed as administrators of RCM Group on April 4, 2018. SURFSTITCH GROUP: Creditors Back Alceon's EziBuy Offer ------------------------------------------------------ Sue Mitchell at Australian Financial Review reports that SurfStitch will be absorbed by online retailer EziBuy after stakeholders overwhelmingly voted in favor of a rescue proposal, despite a last-minute attempt by non-executive director Abigail Cheadle to postpone a decision. After a three-hour meeting in Sydney on April 4, 63 per cent of creditors and class action shareholders voted in favor of a deed of company arrangement proposed by EziBuy's owner, private equity firm Alceon Group, AFR relates. According to the report, Ms. Cheadle lodged an enhanced proposal an hour before the meeting and sought to have the vote adjourned so EziBuy's offer could be assessed by an independent expert, and so creditors whose proxy votes were declared invalid could have a say in the outcome. However, creditors strongly rejected an adjournment after being warned that EziBuy would withdraw its offer if the meeting was postponed and that SurfStitch, which went into voluntary administration last August, could not survive for much longer as a stand-alone business. AFR says SurfStitch co-founder Lex Pedersen, who started the business on Sydney's northern beaches with co-founder Justin Cameron 10 years ago, was disappointed by the outcome. "I think it's a great deal for EziBuy - I understand why it's of great appeal to them," the report quotes Mr. Pedersen, who was a major creditor and shareholder and who supported Ms Cheadle's proposal, which would have seen SurfStitch shareholders emerge with 60 per cent of a relisted company, as saying. "I still think Abi genuinely had the stakeholders' best interests at heart and I definitely don't regret supporting her." However, SurfStitch chairman Sam Weiss welcomed the outcome, AFR notes. "I'm very relieved and optimistic for the future of employees, shareholders and customers of SurfStitch - it would have been very difficult [for the company to survive] given the trauma it's been through over the last few years," Mr. Weiss told The Australian Financial Review. Most media were banned from the meeting but the Financial Review gained entry as a proxy of Ms. Cheadle. The report says Mr. Weiss had earlier warned creditors about the consequences of adjourning the meeting or voting in favour of Ms. Cheadle's proposal, which was backed to the tune of $5 million by private equity firm Greenwich Capital. "If this meeting is adjourned, we'll be then dealing with a single DOCA or a liquidation as the Alceon DOCA will be withdrawn," AFR quotes Mr. Weiss as saying. "The Alceon DOCA is one that provides a future for the employees who have worked for the company for the last decade [and] I have great confidence under the ownership of Alceon they'll be able to deliver the kind of outcome for themselves and the company that was envisioned some 10 years ago. "I have no confidence that as an independent company listed on the ASX SurfStitch will be able to survive." According to the report, Alceon executive director David Wilshire said Alceon, which owns 40 per cent of womens wear retailer Noni B and bought EziBuy from Woolworths last August for $10 million, had a demonstrated track record of turning around retail businesses. "We are pretty confident in our ability to turn around and restore value to SurfStitch shareholders," Mr. Wilshire, as cited by AFR, said. "We think this needs to be resolved now [and] we don't think a further extension of the timeline is in the best interests of creditors." Under the EziBuy DOCA, employee and ordinary creditors will be paid in full in six to eight weeks, class action shareholders will receive a cash dividend between $3.4 million and $4.3 million from SurfStitch's funds and will be issued with a convertible note that will convert to shares in EziBuy in three years' time, AFR discloses. Current SurfStitch shareholders will also receive a convertible note that converts into shares in EziBuy upon a liquidity event such as an IPO or trade sale. According to AFR, Ms. Cheadle and other SurfStitch shareholders had questioned the value of the convertible note, given that the administrators valued EziBuy at between $188 million and $293 million, based on sustainable earnings of about $22 million. When Alceon bought EziBuy from Woolworths last year for $10 million it was earning $2.1 million. Ms Cheadle is now considering her options and hasn't ruled out challenging the decision after the votes of many of her supporters were declared invalid or wound back due to lack of proof of debt, AFR adds. About SurfStitch Group Founded in 2007, SurfStitch Group Limited -- https://www.surfstitch.com/ -- is fashion & surf store based in Australia. It primarily engages in online retail, and online advertising and publication activities. The Company provides action sports brands primarily for teens and young adults through its Websites, SurfStitch.com, Surfdome.com, and SWELL.com. It also operates Magicseaweed, a user generated surf content network that provides forecasting and live reporting of approximately 4,000 beaches worldwide; Stab, an online surf publishing network; and Garage that produces and digitally distributes action and sports long form files and TV content. The Company was placed in administration in August 2017, after being burdened with shareholder class actions, operating losses, and a collapse of its share price. John Park, Quentin Olde and Joseph Hansell of FTI Consulting were appointed as administrators to the Company on August 24. TUPS COMPANY: Second Creditors' Meeting Set for April 13 -------------------------------------------------------- A second meeting of creditors in the proceedings of Tups Company Pty Ltd has been set for April 13, 2018, at 12:00 p.m. at the offices of Farnsworth Shepard, Level 5, 2 Barrack 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 April 11, 2018, at 5:00 p.m. Adam Shepard of Farnsworth Shepard was appointed as administrator of Farnsworth Shepard on March 5, 2018. * Australian Auto ABS and RMBS Delinquencies Rise in January 2018 ----------------------------------------------------------------- Moody's Investors Service says that delinquencies for Australian auto loan asset-backed securities (ABS) and prime residential mortgage-backed securities (RMBS) rose in January 2018 from December 2017. "Specifically, 30+ day delinquencies for Australian auto loan ABS transactions rose to 1.85% in January 2018 from 1.64% in December 2017 and 1.50% in January 2017," says Alena Chen, a Moody's Vice President and Senior Analyst. "In addition, delinquencies for prime RMBS transactions rose to 1.55% in January 2018 from 1.51% in December 2017 and 1.54% in January 2017," adds Chen. Chen was speaking on the release of the latest edition of Moody's monthly Global Structured Finance Collateral Performance Review report. ========= C H I N A ========= CHINA EVERGRANDE: S&P Alters Outlook to Positive & Affirms B ICR ---------------------------------------------------------------- S&P Global Ratings said it has revised its rating outlook on China Evergrande Group (Evergrande) to positive from stable. At the same time, S&P affirmed its 'B' long-term issuer credit rating on the China-based property developer and the 'B-' long-term issue rating on the company's outstanding senior unsecured notes. S&P said, "We revised the outlook on Evergrande to positive because we believe the company's still-high leverage is likely to stay stable over the next 12 months after a considerable improvement in 2017. We also expect Evergrande to better manage its liquidity and capital structure, after a considerable deterioration with a continued increase in short-term debt in the past six months. "We attribute Evergrande's improving leverage, as measured by its debt-to-EBITDA ratio, predominantly to the company's strong revenue growth and margin expansion. We expect Evergrande's significant growth in contracted sales to support 20%-40% revenue growth over the next two years. We anticipate that the company will maintain slower but stable growth in contracted sales in 2018-2019 as it focuses on efficiency and growth quality. However, substantial unrecognized sales of more than Chinese renminbi (RMB) 500 billion as of end-2017, along with the around 10% growth in contracted sales we project in 2018-2019, will be sufficient to drive revenue growth. Evergrande's contracted sales grew 34% to reach RMB501 billion in 2017, supported by strong sales execution amid good market conditions, as well as its balanced exposure to lower-tier and higher-tier cities. Evergrande now consistently ranks among the top three property developers in China in terms of market share. "We expect Evergrande to sustain improving EBITDA margins of around 30% in the next 12 months. The widespread market recovery, which has spread to some of the lower-tier cities, has led to a substantial increase in average selling price (ASP) for the company. We expect Evergrande's ASP to be above RMB10,000 per square meter (sqm), which is a good increase from RMB6,000- RMB7,000/sqm a few years ago. The company's EBITDA margin grew to over 31% in 2017, from 21.6% a year earlier. "However, we believe Evergrande's aggressive approach to seek expansion has only moderately decreased but has not substantially changed, despite management proclaiming the focus is now shifting toward efficiency and quality. The company's rise in debt slowed in 2017, with adjusted debt growing 14% year over year. However, that was due to the use of more nondebt financing, such as the RMB130 billion pre-A-share-listing capital raising, rather than a reduction in spending. Indeed, Evergrande's land purchases in 2017 reached RMB310 billion, substantially more than our expectation. As such, we expect faster debt growth to resume in 2018-2019, in the absence of major new nondebt financing, as we believe the company will need to continue to build its land bank to support its massive scale and the slower but stable growth. Strong EBITDA growth and higher margins will temper the impact of the faster debt growth, in our view. "As a result, we expect Evergrande's debt-to-EBITDA ratio to remain high in 2018-2019 at 7.0x-7.6x. The ratio had dropped to 7.9x in 2017, compared with more than 14x in 2016. These leverage levels, though better than before, are still elevated and could be vulnerable to a significant change in industry conditions or financing conditions." Evergrande's liquidity has deteriorated in the past six months, with liquidity sources only able to cover 0.8x liquidity uses over the next 12 months. That is mainly due to the continued increase in short-term debt, which now amounts to RMB356 billion, or almost 50% of the reported gross debt. As such, Evergrande's maturity profile and capital structure are uneven and are weaker than peers', in S&P's view. S&P said, "We attribute the increase in Evergrande's short-term debt to the use of cash-pledged offshore borrowings (which have a one-year maturity), considerable trust loan exposure in its capital structure, and more construction loans close to maturity. That said, we see a reasonably good chance for liquidity to improve because management may use the cash balance or cash inflows to reduce short-term debt. The debt maturity can also improve when the company rolls over or refinances its expiring construction loans." Evergrande's reasonable access to various funding channels will also help the company to better manage its liquidity profile and capital structure. The improvement in short-term debt, capital structure, and liquidity will be key for a rating upside over the next 12 months. S&P said, "The positive outlook reflects our expectation that Evergrande will improve its liquidity over the next 12 months, and that its leverage, albeit high, will remain stable at around 8x. We also expect the company's contracted sales to have slower but stable growth in 2018, with profitability sustaining at current levels. "We may raise our rating if: (1) Evergrande improves its debt maturity profile, liquidity, and capital structure, such that its liquidity sources exceed its liquidity uses over the next 12 months; and (2) the company is more disciplined in land acquisitions and expansion, such that its EBITDA interest coverage stays above 1.5x and its debt-to-EBITDA ratio does not deteriorate from our expectation of around 8x. "We may revise the outlook to stable if: (1) Evergrande's liquidity does not improve. This could happen if the company continue to take, and substantially rely on, short-term financing to roll over existing debt or fund its expansion; or (2) Evergrande materially increases its borrowings with high funding costs, such that its EBITDA interest coverage decreases to below 1.5x, or its debt-to-EBITDA ratio deteriorates materially from our expectation." SEVEN STARS: Narrows Net Loss to $10.2 Million in 2017 ------------------------------------------------------ Seven Stars Cloud Group, Inc., filed with the Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $10.19 million on $144.33 million of total revenue for the year ended Dec. 31, 2017, compared to a net loss of $28.50 million on $35.18 million of total revenue for the year ended Dec. 31, 2016. The increase in revenue was mainly due to the Company's new business lines acquired in January 2017, and to a lesser extent, one-time consulting services that it provided to certain customers. This increase was partially offset by a decrease of its legacy YOD business in the amount of $3.8 million, as the legacy YOD business shifts to a new exclusive distribution agreement with Zhejiang Yanhua Culture Media Co., Ltd., or Yanhua, which was announced in the fourth quarter of 2016. As of Dec. 31, 2017, Seven Stars had $63.03 million in total assets, $31.65 million in total liabilities, $1.26 million in convertible redeemable preferred stock and $30.12 million in total equity. Cost of revenues was $137.2 million for the year ended Dec. 31, 2017, as compared to $35.6 million for the year ended Dec. 31, 2016. The Company's cost of revenues increased by $101.6 million which is in line with its increase in revenues. The Company's cost of revenues is primarily comprised of costs to purchase electronic products and crude oil from suppliers in the Company's supply chain business as well as the cost of sales from the Legacy YOD business which is primarily comprised of content licensing fees. Gross profit for the year ended Dec. 31, 2017 was approximately $7.2 million, as compared to a gross loss of $0.4 million during the same period in 2016. Gross profit ratio for the year ended Dec. 31, 2017 was 5.0%, while in 2016, it was negative. The reason for the gross loss in 2016 was due to higher costs associated with the commercial electronic supply chain business as the Company looked to expand its customer base and sales volume. For the year ended Dec. 31, 2017, gross margin for the electronic supply chain business increased to 2.7%, which contributed gross profit in the amount of $3.3 million. Selling, general and administrative expense for the year ended Dec. 31, 2017 was $12.8 million as compared to $10.9 million for the same period in 2016, an increase of approximately $1.9 million or 18%. The majority of the increase was due to 1) an increase in the Company's sales and marketing expense in the amount of $1.6 million in order to introduce and promote its services to various new potential business partners; 2) an increase of approximately $0.9 million of share based compensation due to option and restricted shares units that the Company approved for grant to independent board members for their 2017 compensation (which included a significant increase in board related work during 2017 compared with prior years; 3) an increase in headcount and relevant traveling expenses in the amount of $1.1 million and 4) leasehold improvement disposal losses of approximately $0.7 million that were incurred when the Company canceled its purchase of the Company's Beijing office building in 2017. Professional fees are generally related to public company reporting and governance expenses as well as legal fees related to business transition and expansion. The Company's professional fees increased approximately by $1.8 million, or 125%, for the year ended Dec. 31, 2017, compared with the same period in 2016. The increase in professional fees was related to an increase in audit service fees, which increased from $0.6 million in 2016 to $1.2 million in 2017. This increase can be primarily attributed to the non-recurring opening audit fess due to the auditor change as well as increasing legal, financial advisory, valuation and auditing service fees incurred in relation to acquisitions and general corporate business activity in 2017. In 2016, the Company recognized an Earn-Out Share Award expense to Bruno Wu's Sun Seven Stars of approximately $13,700,000, for reaching certain milestones and based on the fair value of common stock issued at the time. In 2017, no such expense was incurred. Loss per share for 2017 was $0.16 as compared to loss per share of $0.73 in 2016. Executive Chairman and CEO Bruno Wu stated, "2017 saw persistent operational improvements throughout the year with our business gaining strength, diversification and stability quarter after quarter. Sales were up substantially as the Company transitioned away from the old and began establishing the foundation for the future. Looking forward, SSC's market opportunities in fintech-powered digital asset securitization are both significant and synergistic. Our ability to innovate and execute as we did in 2017 gives us the confidence to become a leader in the digital finance space, as we foresee customers and partners beginning to recognize our platform innovations and market leadership. The Company executed the first phase of its strategic and integration plan by acquiring, investing in, or partnering with firms focused on Artificial Intelligence, Blockchain and Alternative Trading System platforms. Now, SSC is poised to launch the second phase of its strategic plan in 2018 and expects to introduce a Global Trading Partner Network that enables partners to list and trade financial products both cost effectively and seamlessly across the globe. With this plan in place, management remains focused not only on sustained revenue growth but increased and stronger margins all while continuing to evaluate all existing opportunities to create and maximize shareholder value." Going Concern Doubt B F Borgers CPA PC's report on the consolidated financial statements for the year ended Dec. 31, 2017, contains an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern. The auditors stated that the Company incurred recurring losses from operations, has net current liabilities and an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://is.gd/Z089Qk About Seven Stars Seven Stars Cloud Group, Inc., formerly Wecast Network, Inc. -- http://www.sevenstarscloud.com/-- is aiming to become a next generation Artificial-Intelligent (AI) & Blockchain-Powered, Fintech company. By managing and providing an infrastructure and environment that facilitates the transformation of traditional financial markets such as commodities, currency and credit into the asset digitization era, SSC provides asset owners and holders a seamless method and platform for digital asset securitization and digital currency tokenization and trading. The company is headquartered in Tongzhou District, Beijing, China. ========= I N D I A ========= ALOK INDUSTRIES: Banks Seek to Wind Up Two India Firms ------------------------------------------------------ Anto Antony at Bloomberg News reports that creditors are pushing for liquidation of Alok Industries Ltd. and Jyoti Structures Ltd. -- which together owe about INR380 billion ($5.8 billion) -- as they aren't happy with bids for the debt-laden companies, said people familiar with the matter. Bloomberg relates that the only binding bid for textile firm Alok is one from Reliance Industries Ltd. and JM Financial ARC, which offers a price that's too low for the lenders, the people said, asking not to be named as the information is private. They didn't provide further details. Alok owes INR299 billion, Bloomberg discloses citing official data. Jyoti, which owes about INR80.8 billion, also received a single bid from a consortium of wealthy individuals led by Sharad Sanghi, who is chief executive officer of a data center. The bidders lack the experience to manage an engineering and construction firm like Jyoti, the people, as cited by Bloomberg, said. According to Bloomberg, the two Mumbai-based companies are among a dozen debtors which are seen as test cases for India's 15-month- old bankruptcy law that aims to clean up more than $210 billion of stressed assets over a year or so. According to the bankruptcy court rules, a bad-loan resolution plan must be agreed within 270 days, failing which the company's assets will be liquidated. The deadline for the Jyoti case was March 31 while Alok should be resolved by April 14, Bloomberg says. Alok Industries Limited (BOM:521070) -- http://www.alokind.com/ -- is a textile company with a presence in the cotton and polyester segments. The Company is engaged in manufacturing of textile, including mending and packing activities; leather and other apparel products. Its geographic segments include Domestic, which includes sales to customers located in India and International, which includes sales to customers located outside India. Its divisions include Spinning, such as cotton yarn; Home Textiles, such as sheeting fabric, equivalent sheet sets and terry towels; Apparel Fabrics, such as woven fabric (includes embroidery) and knits; Garments, and Polyester, such as continuous polymerization, partially oriented yarn (POY)/chip, draw texturized yarn (DTY), fully drawn yarn (FDY), polyester staple fiber/cationic yarn and master batch. Its products include accessories, corrugated pallets, cotton and blended yarn. It exports its products to over 90 countries across the United States, Europe, Latin America, Asia and Africa. ALTAIR POWER: Ind-Ra Migrates 'B-' LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Altair Power Private Limited's (APPL) 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 B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limit migrated to Non- Cooperating Category with IND B-(ISSUER NOT COOPERATING)/ IND A4(ISSUER NOT COOPERATING) rating; -- INR30 mil. Non-fund-based working capital limit migrated to Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR20 mil. Proposed non-fund-based working capital limit migrated to Non-Cooperating Category with Provisional IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 16, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated on February 11, 2013, APPL is a private company engaged in the manufacturing of electric power cables such as XLPE, PVC and aerial bunched that are used in the power transmission industry. Its manufacturing facility, which has an annual production capacity of 8.5 million meters of cables, is located in New Delhi. Its directors are Mr. Bhavesh Jain and Mr. Sandeep Jain. AMRAPALI SMART: CARE Moves D Rating to Not Cooperating Category --------------------------------------------------------------- CARE Ratings has been seeking information from Amrapali Smart City Developers Private Limited (ASCDPL) to monitor the rating vide e-mail communications dated Feb. 27, 2018, March 1, 2018, 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 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 Amrapali Smart City Developers Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 270.00 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. The ratings take into account the ongoing delays in the debt servicing. Detailed description of the key rating drivers At the time of last rating on April 14, 2017, the following were the rating strengths and weaknesses: Key Rating Weaknesses Delays in debt servicing: There have been ongoing delays by ASCDPL in servicing of its debt obligations. This could be attributed to the tight liquidity position owing to the slowdown in the real estate market leading to slow sales and collection from the customers. Incorporated in 2010, Amrapali Smart City Developers Pvt Limited (ASCDPL) is an SPV promoted by Amrapali group. ASCD is developing a single group housing project in Greater Noida with total saleable area of 116 lsf on total land area of 61 acres. ASCD has acquired the land for the said project on lease from Greater Noida Industrial Development Authority on deferred payment basis for INR260cr. The company has launched the project in August 2010 and proposes to complete the same in phases by 2019. The total project cost is estimated to be INR1383 cr funded through debt of INR270 cr (financial closure achieved), promoter equity of INR201 cr and customer advances of INR912 cr. ANTONY MOTORS: ICRA Keeps B+ Ratings in Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings said the ratings for the INR18.50 crore bank facilities of Antony Motors Private Limited continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable)/ [ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term: Fund 8.50 [ICRA]B+ (Stable) ISSUER NOT Based COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Short-term: Non- 10.00 [ICRA]A4 ISSUER NOT Fund based limits COOPERATING; Rating continues to remain in the '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 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. Incorporated in 1992, Antony Motors Private Limited is engaged in the business of manufacturing of special purpose vehicles for Solid Waste Management and Motor Body Fabrication. Initially, the company started with fabrication of bus bodies on chassis for various states and corporation owned city buses. Subsequently, the company diversified into fabricating special purpose vehicles like fire-fighting equipment, Suction and Jetting machine, Ambulances. The existing range of products include Compactors, Painted bins, Cement Bulker, Suction machines, Portable Cabins, Suction cum Jetting Machine, Tipper, Dumper Placer, Transfer Stations, Fire Fighting Vehicles, Refuellers and other fabricated special purpose vehicles. AMPL was one of the first companies in the body builder and fabricator category to get ISO 9001:2000 and subsequently ISO 9001:2008 certifications. ATUL SHARMA: Ind-Ra Keeps 'BB-' Rating in Non-Cooperating Cat. -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Atul Sharma Solar Energy's (ASSE) Long-Term Issuer Rating in 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 appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR62 mil. Term loan maintained in Non-Cooperating Category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 18, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2013, ASSE is a proprietorship firm engaged in the generation of solar power and is solely managed by its proprietor, Atul Sharma. BAMBINO PASTA: Ind-Ra Raises Long Term Issuer Rating to BB+ ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Bambino Pasta Food Industries Private Limited's (BPFIPL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR500 mil. Term loan due on March 2024 assigned with IND BB+/Stable rating; -- INR200 mil. Fund-based working capital limit Long-term rating upgraded and Short-term rating affirmed with IND BB+/ Stable/IND A4+ rating; -- INR30 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; -- INR316.5 mil. Term loan due on February 2018 withdrawn (paid in full) and the rating is withdrawn; and -- INR30 mil. Proposed fund-based working capital limit* Assigned with Provisional IND BB+/Stable/Provisional IND A4+ rating. * The ratings are provisional and shall be confirmed upon the sanction and execution of the loan documents for the above facilities by BPFIPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The upgrade reflects Ind-Ra's expectation of a sustainable improvement in BPFIPL's credit profile in FY18 and FYE19 on account of steady revenue growth and scheduled debt repayment. As of 9MFY18, the company achieved revenue of INR1,686.2 million, higher than INR1,602.8 million recorded in FY17 (FY16: INR975.4 million) on account of restructuring of businesses within the group companies. EBITDA margins contracted to 9.8% in FY17 (FY16: 18%) due to higher expenditure incurred for establishing distribution network post the restructuring of businesses. However, Ind-Ra expects absolute EBITDA is likely to have improved in FY18; the company achieved EBITDA of INR167.7 million in 9MFY18 (FY17: INR156.3 million). Net leverage (total adjusted net debt/operating EBITDAR) improved to 3.0x in 9MFY18 (annualized) (FY16: 3.8x) and gross interest coverage (operating EBITDA/gross interest expense) to 2.8x (1.7x) due to the increase in the absolute EBITDA. However, the ratings are constrained by the company's tight liquidity position as indicated by 98.9% average utilization of the fund-based facilities over the 12 months ended February 2018. The ratings, however, continue to be supported by the company's three-decade-long established brand, Bambino. The ratings are also supported by company's continuous initiatives to rollout new products. It launched two products in 4QFY18 and is likely to launch two more products in FY19. RATING SENSITIVITIES Positive: A substantial growth in revenue and/or improvement in profitability margin, leading to a sustained improvement in the credit metrics, will lead to a positive rating action. Negative: A decline in revenue and/or profitability margin, leading to a sustained deterioration in the credit metrics, will lead to a negative rating action. COMPANY PROFILE Established in 2000, BPFIPL manufactures and sells pasta and wheat products under the Bambino brand. The company has a 30,492 metric tons per annum pasta plant in Bibinagar near Hyderabad, Telangana. BHARAT SPUN: CARE Lowers Rating on INR20cr Bank Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Bharat Spun Pipes & Construction Company, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.00 CARE D; Issuer not cooperating; Facilities Revised from CARE BB-; Stable on the basis of best available information Long-term/Short- 20.00 CARE D/CARE D; Issuer not Term Bank cooperating; Revised from Facilities CARE BB-; Stable /CARE A4 on the basis of best available information Detailed Rationale & Key Rating Drivers Bharat Spun Pipes & Construction Company 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 BSPCC'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(s). The ratings have been taken into account on account ongoing overdrawings in its cash credit account for more than 30 days as well as various instances of LC devolvement. Detailed description of the key rating drivers At the time of last rating on November 27, 2017, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies). Key Rating Weakness Delay in debt servicing: Banker has verbally confirmed that there are instances of LC devolvement and overdrawing in its Cash Credit account for more than 30 days. The management has confirmed the same and delay in debt servicing was mainly due to its stressed liquidity position. Jaipur-based (Rajasthan) Bharat Spun Pipe and Construction Company (BSPCC) was formed in 1956 as a partnership concern by Mr. Gopi Prasad Baisiwala and his four sons. Subsequently, partnership deed was reconstituted several times and currently, Mr. Dinesh Chandra Gupta, Mr. Prateek Gupta and Mrs. Manika Gupta are partners in the firm with profit sharing of 51%, 39% and 10% respectively. Initially, BSPCC was engaged in manufacturing of cement pipes. Later on, in 1995 the firm changed its business and started manufacturing of Reinforced Cement Concrete (RCC) blocks, boxes, manhole covers and fabrication of girders. Along with manufacturing activities, the firm also entered into civil construction segment which includes construction of Road over Bridge (ROB), CC block pavement, construction and fabrication of Foot over Bridge (FOB) and platform shelters etc. BSPCC has status of 'AA' class (highest in the scale of AA to E) approved contractor from Jaipur Development Authority (JDA). BSPCC also supplies girders, RCC blocks and other RCC products to private contractors. BHOLA RAM: Ind-Ra Migrates BB LT Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Bhola Ram Steel Private Limited's (BRSPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR100 mil. Fund-based limits migrated to Non-Cooperating Category with IND BB(ISSUER NOT COOPERATING) rating; and -- INR7.5 mil. Non-fund-based limitsmigrated to Non-Cooperating Category with IND A4+(ISSUER NOT COOPERATING) rating; Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 2, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE BRSPL was established in 1988 by Mr. Ajay Kumar Goyanka. The company has a manufacturing unit in Digha, Patna which manufactures different steel products such as mild-steel bars, flat angles and other products. BINANI CEMENT: Lenders Entertain Birla's Last-Minute $1.1BB Bid --------------------------------------------------------------- Bloomberg News reports that Binani Cement Ltd. lenders will entertain a local tycoon's last-minute $1.1 billion bid for the insolvent Indian company, people with knowledge of the matter said. Bloomberg, citing people familiar with the matter, relates that the committee of creditors decided at a meeting on April 4 it would be willing to support the proposal, which would see Binani Cement sold to billionaire Kumar Mangalam Birla's UltraTech Cement Ltd. Bloomberg says the banks plan to tell Binani Cement's parent company that they could give their backing if it first obtains relevant approvals, the people said, asking not to be identified because the information is private. Lenders will require Binani Industries Ltd. to pay them an initial INR7.5 billion (US$115 million) and provide a bank guarantee covering the remaining bid amount, one of the people said, Bloomberg relays. The plan would need approval from India's National Company Law Tribunal, according to another person. According to Bloomberg, the move would overturn a decision the lenders made last month to support an offer from a rival consortium that includes Dalmia Bharat Ltd., a domestic competitor of UltraTech, and a Bain Capital-backed fund. After creditors picked their preferred bidder, UltraTech made a higher offer directly to Binani Industries. UltraTech's latest bid for Binani Cement was conditional on insolvency proceedings being terminated, Bloomberg notes. The National Company Law Tribunal has adjourned a case filed by UltraTech to April 9 and asked Binani Cement lenders to form an opinion on the offer by then, Bloomberg says. The situation is fluid, and there's no certainty the deal will be completed as currently envisioned, the people, as cited by Bloomberg, said. About Binani Cement Binani Cement is a subsidiary of Binani Industries, a conglomerate with manufacturing and R&D operations. It has a manufacturing capacity of 11.25 million tonnes (mt) per annum with integrated plants in India and China, and grinding units in Dubai. On July 25, 207, the Kolkota bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against Binani Cement. Bank of Baroda (BoB) had referred Binani to the bankruptcy court after it failed to repay a sum of INR97 crore. BoB has appointed Vijaykumar V Iyer of Deloitte India as the interim resolution professional (IRP) to oversee the insolvency process. The company owes a consortium of lenders close to INR3,042.93 crore. Edelweiss ARC, which has bought over a chunk of the debt from bankers, is now the leader of the consortium. BN INDUSTRIES: Ind-Ra Affirms B+ LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed B.N. Industries' (BNI) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR65 mil. Fund-based limits affirmed with IND B+/Stable/ IND A4 rating; and -- INR30 mil. Non-fund-based limits affirmed with IND A4 rating. KEY RATING DRIVERS The affirmation reflects BNI's continued small scale of operations and weak credit metrics as the company operates in a niche segment. In FY17, revenue grew to INR240 million (FY16: INR135 million) on account of an increase in orders. Interest coverage (operating EBITDA/gross interest expense) improved to 1.34x in FY17 (FY16: 1.29x) and net leverage (total adjusted net debt/operating EBITDAR) to 6.12x (6.69x) owing to an increase in EBITDA to INR23 million (INR21 million) and a decrease in total debt to INR140 million (INR143 million). The ratings are constrained by the firm's weak liquidity position as reflected by full utilization of the working capital limits during the 12 months ended February 2018, with few instances of overutilization which were regularized within five days. Net working capital cycle reduced to 186 days in FY17 (FY16: 339 days) mainly on account of a decline inventory holding period of 186 days (449 days). The ratings, however, remain supported by BNI's promoters' over 25 years of experience in the industrial chemicals manufacturing business. RATING SENSITIVITIES Positive: A substantial improvement in the scale of operations, along with an improvement in the overall credit metrics will be positive for the ratings. Negative: Deterioration in the liquidity position will be negative for the ratings. COMPANY PROFILE Incorporated in 1989, BNI is a partnership firm engaged in manufacturing of zinc oxide, zinc sulphate, copper ingots, brass metallic/ingots and zinc powder at its Daman facility. The firm is promoted by Ashwani Kumar Singhal, Animesh Singhal, Abhishek Singhal and Ritesh Singhal. BNSR INDUSTRIES: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated BNSR Industries Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument- wise rating actions are: -- INR26.50 mil. Fund-based working capital migrated to Non- Cooperating Category with IND BB-(ISSUER NOT COOPERATING)/ IND A4+(ISSUER NOT COOPERATING); rating -- INR15 mil. Non-fund-based limits migrated to Non-Cooperating Category with IND A4+(ISSUER NOT COOPERATING) rating; -- INR7.50 mil. Term loan due on March 2022 migrated to Non- Cooperating Category with IND BB-(ISSUER NOT COOPERATING) rating; -- INR23.50 mil. Proposed fund-based working capital migrated to Non-Cooperating Category with Provisional IND BB-(ISSUER NOT COOPERATING) /Provisional IND A4+(ISSUER NOT COOPERATING) ratings; and -- INR15 mil. Proposed non-fund-based limits migrated to Non- Cooperating Category with Provisional IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 19, 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 1992, BNSR Industries (ISO 9001-2000) manufactures cables and conductors. CATVISION LIMITED: Ind-Ra Affirms BB+ LT Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Catvision Limited's (CATVL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR85 mil. (increased from INR65 mil.)Fund-based working capital limits affirmed with IND BB+/Stable/IND A4+ rating; -- INR42.5 mil. Non-fund based working capital limits affirmed with IND A4+ rating; and -- INR12.5 mil. Term deposit* due on September 30, 2018 affirmed with IND B+/Stable rating. * Term deposit is valid up to the date of the next annual general meeting or within six months from the close of the next financial year, whichever is earlier. KEY RATING DRIVERS The affirmation reflects CATPL's continued modest scale of operations and volatile EBITDA margin as it operates in a highly competitive electronic industry. Revenue grew to INR566.84 million in FY17 (FY16: INR506.31 million) because of an increase in orders from existing and new customers. Ind-Ra expects revenue to improve significantly in FY18 on the back of high demand of set-up boxes due to cable TV digitalization. The company booked revenue of INR724 million as of 11MFY18. EBITDA margin declined to 6.50% in FY17 (FY16: 9.34%, FY15: 5.57%) on the back of an increase in raw material cost. Gross interest coverage (gross EBITDA/interest coverage) deteriorated to 3.40x in FY17 (FY16: 5.54x) and gross leverage (adjusted debt/operating EBITDA) to 2.40x (2.16x) due to a decline in operating EBITDA and an increase in interest cost, resulting from higher utilization of the fund-based facility. However, net leverage (adjusted net debt/operating EBITDA) improved marginally to 1.35x in FY17 (FY16: 1.92x) on the back of high cash and equivalents at 31 March 2017. The ratings, however, continue to be supported by CATVL's promoters' three-decade-long experience in the community antenna television equipment manufacturing business, leading to strong relationships with suppliers and customers. The company's liquidity profile also remained comfortable with average working capital utilization of around 61.40% during the 12 months ended February 2018. RATING SENSITIVITIES Positive: A sustained improvement in the top line while improving the operating profitability and credit metrics will be positive for the ratings. Negative: Any decline in the operating profitability and deterioration in the credit metrics on a sustained basis will be negative for the ratings. COMPANY PROFILE CATVL was incorporated on June 28, 1985. The company manufactures community antenna television equipment for providing cable television services and also produces cable TV products, such as modulators, combiners, optic transmitters, optic nodes, radio frequency amplifiers, power supplies and splitters, and tap-offs of different functionalities. DIGHI PORT: CARE Moves D Rating to Not Cooperating Category ----------------------------------------------------------- CARE Ratings has been seeking information from Dighi Port Limited (DPL) to monitor the rating(s) vide e-mail communications/letters dated November 6, 2017, January 3, 2018, January 30, 2018, February 2, 2018 and February 8, 2018 and numerous phone calls. However, despite CARE's repeated requests, DPL 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, DPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Dighi Port Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 777.09 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). Detailed description of the key rating drivers Key Rating Weaknesses Delays in debt servicing: There are ongoing delays in debt servicing of due to cash flow mismatch attributed to underutilization of commissioned berths and unavailability of rail and road connectivity. Dighi Port Limited (DPL) has been promoted by Balaji Infra Projects Ltd (BIPL, holding 51.01%), Infrastructure Leasing & Financial Services Ltd (IL&FS, holding 39.37%) and Tara India Fund III LLC (5.46%) as a Special Purpose Vehicle (SPV) for the development of port at Dighi, Maharashtra. As per the Concession Agreement (CA) dated March 17, 2002 with Maharashtra Maritime Board (MMB), DPL would develop, design, finance, construct, operate and maintain the port on Build, Own, Operate, Share and Transfer (BOOST) basis for a period of 50 years. The port is located in the Rajpuri Creek, in Raigad District in the State of Maharashtra on the West Coast of India. The project suffered delay in implementation, cost overrun and unavailability of rail and road connectivity leading to underutilization of commissioned berth resulting in stressed liquidity position. DPL filed application to CDR cell on November 28, 2011 for restructuring of its loans aggregating INR802.60 crore and the same was approved on June 27, 2012 with the cut-off date of October 1, 2011. DQ ENTERTAINMENT: CARE Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- CARE Ratings has been seeking information from DQ Entertainment International Limited (DQE) to monitor the rating vide e-mail communications/letters from June 20, 2017 to March 2, 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 on DQE's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 155.58 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 continues to factor in delays in debt servicing on account of cash flow mismatches. Detailed description of the key rating drivers At the time of last rating in the last Press Release dated October 13, 2016, the following were the rating strengths and weakness and also information available from stock exchange filings from Bombay Stock Exchange (BSE): Key Rating Weaknesses Delays in debt servicing: The company's revenues are primarily generated from Europe and US regions. The animation industry worldwide had experienced huge slowdown, thereby impacting the revenues and collections of the company. The company registered operating loss and reported cash loss of INR 213 crore for FY17. Further, the collection period of the company deteriorated significantly and was around 1147 days for FY17. Owing to stretched liquidity, there are delays in debt servicing as confirmed by the lenders. Significant decline in financial performance of the company: The total operating income of the company witnessed significant decline of around 51% during FY17 vis-Ö-vis FY16. The company reported operating loss with net loss of INR186 crore for FY17 vis-a-vis profit of INR 24 crore for FY16. Cash loss for FY17 was around INR 213 crore as against cash profit of INR 56 crore for FY16. Key Rating Strengths Experienced promoters with long track record of operations in business: The promoters Mr. Tapaas Chakravarti has more than a decade of experience in the animation and gaming industry. Mr. Tapaas has held senior positions in Sales and Projects at Coats of India, (a British multinational). He was Head of Special Projects for Sriram Group where he developed countrywide contract manufacturing activities. DQE is one of the largest independent children's media company with a comprehensive portfolio of existing and developed franchise properties. DQE was incorporated in April 2007 as Animation and Multimedia Pvt Ltd in Hyderabad. DQE, is one of the leading global entertainment group, publicly listed in Alternative Investment Market (AIM) market of London Stock Exchange, U.K and BSE and NSE in India. DQE is in the business of animation, gaming, live action content production, licensing and distribution. The company is based in Hyderabad and has 1,732 associates globally with world class facilities for content creation and production in 2D, CGI, 3D- Stereoscopic, visual effects (VFX), Game Art. The Company's three main products and services are animation production services, co-owned content development and intellectual property development & distribution. It also provides training services for the production of animated television series and movies as well as licenses programmed distribution rights to broadcasters, television channels, and home video distributors. FINOLITE CERAMIC: ICRA Keeps B/A4 Ratings in Not Cooperating Cat. ----------------------------------------------------------------- ICRA Ratings said the ratings of INR23.50 crore bank facilities of Finolite Ceramic continues to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable)/A4; ISSUER NOT COOPERATING." 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. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed limits 23.50 [ICRA]B (Stable)/[ICRA]A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Established in June 2015, Finolite Ceramic is a Partnership Firm engaged in the manufacturing of vitrified tiles and digital wall tiles. The firm's corporate office is located in Morbi, Gujarat and upcoming factory unit located at Ranpar village of Morbi district in Gujarat. The factory unit is expected to have an installed capacity of about 10,000 Boxes per day of size 12 inch x 24 inch and of approx. 30Kg per Box i.e approx. 90,000 MT per Annum. The firm has eight partners. However, Mr. Digesh Durlabhjibhai Aghara, Mr. Nileshkumar Anantrai Mendapara, Mr. Ramnikbhai Anantrai Mendpara, Mr. Kishorbhai Premjibhai Varasada, Mr. Dineshbhai Kanjibhai Kothiya, and Mr. Ashishbhai Hansrajbhai Kalariya would be the key partners managing overall operations of the firm. A few of the partners have considerable experience within the manufacturing and marketing of ceramic tiles though their group companies namely Lexico Ceramic and Doll Ceramic Private Limited. Partner of the firm are from varied background having experience within industries namely, manufacturing of packing materials, manufacturing of die & mould and chemical trading activities. FRONTIER WAREHOUSING: Ind-Ra Moves BB+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Frontier Warehousing Private Limited's (FWPL) Long-Term Issuer Rating in 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: -- INR345.05 mil. Term loan maintained in Non-Cooperating Category with IND BB+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 10, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2010, FWPL leases out its warehouse facility located in Kolkata, West Bengal. It is a subsidiary of Rasha Ind Private Limited which owns 66.2% of the company. Rasha Ind has multiple businesses including renting of warehouses, operating a cold storage and undertaking engineering, procurement and construction (EPC) contracts. The majority of its revenue is generated by its EPC business. FWPL is managed by two of its directors - Gautam Agarwalla and Amit Agarwalla. GAYATRI PROJECTS: CARE Lowers Rating on INR4594.03cr Loan to D -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Gayatri Projects Limited (GPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 2138.03 CARE D Revised from CARE BB-; Facilities Negative Long-term/Short- 4594.03 CARE D/CARE D Revised from term Bank CARE BB-; Negative/CARE A4 Facilities Detailed Rationale & Key Rating Drivers The revision in ratings assigned to the bank facilities of GPL takes into account delays in meeting debt obligations owing to the stretched liquidity position of the company. Detailed description of the key rating drivers Key Rating Weaknesses Stretched liquidity position leading to delays in debt servicing and overdrawals: Liquidity position of the company deteriorated on account of elongated collection period coupled with high repayment obligations. There has been delay in realisation from debtors pertaining to the work orders executed during the year leading to stretched liquidity position resulting in delays in debt servicing. Key Rating Strengths Experienced promoters albeit limited experience in execution of power projects: GPL is a prominent infrastructure construction company with over four decades of experience in executing various infrastructure projects, especially road and irrigation segment. GPL, an ISO 9001-2000 company, is engaged in execution of major Civil Works including Concrete/Masonry Dams, Earth Filling Dams, National Highways, Bridges, Canals, Aqueducts, Ports, etc. It specialises in engineering, procurement and construction (EPC) of road, irrigation and industrial projects across India. Gayatri Projects Limited (GPL) is promoted by Dr T. Subbarami Reddy, while the day-to-day management of the company is currently undertaken by his son and Managing Director Mr. T V Sandeep Kumar Reddy. GPL is a prominent infrastructure construction company with over four decades of experience in executing various infrastructure projects, especially in road and irrigation segment. GPL, an ISO 9001-2000 company, is engaged in execution of major Civil Works including Concrete/Masonry Dams, Earth Filling Dams, National Highways, Bridges, Canals, Aqueducts, Ports, etc. It specialises in engineering, procurement and construction (EPC) of road, irrigation and industrial projects across India. GUJARAT INFRAPIPES: CARE Lowers Rating on INR38.90cr Loan to D -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Gujarat Infrapipes Private Limited (GIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 1.49 CARE D; Revised from CARE BB; Stable based on best available Information Long-term/Short Term Bank Facilities 23.00 CARE D/CARE D; Issuer Not Co- operating; Revised from CARE BB; Stable/CARE A4 based on best available information Short-term Bank Facilities 38.90 CARE D; Revised from CARE A4 based on best available information CARE has been seeking information from GIPL to monitor the rating vide e-mail communications dated January 18, 2018, February 5, 2018, February 12, 2018, March 7, 2018 and March 10, 2018, along with numerous phone calls. However, despite CARE's repeated requests, the firm 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 has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings of GIPL's bank facilities will now be denoted as CARE D / 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 ratings for the bank facilities of GIPL takes into account reported delays in its debt servicing obligations due to its stressed liquidity. Detailed description of the key rating drivers Key Rating Weaknesses Delay in servicing of debt obligations: GIPL had delayed servicing of its debt obligations due to its stressed liquidity. Incorporated in 1991 and promoted by Mr. Shantilal D. Mehta and his family members, GIPL is engaged in manufacturing of seamless and welded pipe fittings made from carbon steel, stainless steel and alloy steel. As on March 31, 2016, GIPL has an installed capacity of 11,280 Metric Tonnes Per Annum (MTPA) for manufacturing of its products at its two facilities at Manglej and Por in the Vadodara district of Gujarat. However the production facility of Por was relocated to Manglej by March 2014 to derive synergy benefits of production at one location. Pipe fittings, tees, elbows and pre-fabricated spools are the products manufactured by GIPL which mainly find application requirements such as oil and gas transportation, petrochemicals and power plant accessories. H R BUILDERS: ICRA Keeps B+ Rating in Not Cooperating Category -------------------------------------------------------------- ICRA Ratings said the rating for the INR31.81 crore bank facilities of H R Builders (HRB) continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] B+ (Stable)/A4 ISSUER NOT COOPERATING". 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. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 8.0 [ICRA]B+ (Stable) ISSUER NOT Overdraft COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Non-Fund based- 23.81 [ICRA]A4 ISSUER NOT bank guarantee COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category 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. Incorporated in January 1981 by Mr. Hansraj Dhankar, HR Builders (HRB) is a proprietorship concern which is engaged in the construction of roads and buildings. The scope of work executed by the firm under the roads segment includes repair, maintenance and rehabilitation of existing roads as well as construction of new roads. Under the building construction segment, the services offered by the firm include construction of structural work for buildings, furniture and fixtures fittings, plumbing, electrical, fire fighting, flooring, marble laying etc. The level of complexity involved in these projects is generally low as the specifications (architecture, design, material to be used, vendors etc.) for the contract are provided by the client and the firm is required to execute the projects as per these specifications. The client profile of the firm largely includes public sector clients like DSIIDC, Public works department, National Highway Authority of India, DMRC etc. HILL STONE: ICRA Moves B+ Rating to Not Cooperating Category ------------------------------------------------------------ ICRA has moved the ratings for the INR7.61 crore bank facilities of Hill Stone Ceramic Private Limited to the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable) /[ICRA]A4 ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 3.01 [ICRA]B+ (Stable) ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund based-Cash 3.50 [ICRA]B+ (Stable) ISSUER NOT Credit COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Non Fund based- 1.10 [ICRA]A4 ISSUER NOT Bank Guarantee COOPERATING; Rating moved to the '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. JAIN VINIMAY: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Jain Vinimay Pvt Ltd.'s (JVPL) 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 D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR14.3 mil. Term-loans (long-term) migrated to Non- Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; -- INR50 mil. Fund-based limits (long-term) migrated to Non- Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; -- INR20 mil. Non-fund-based limits (short-term) migrated to Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 7, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE JVPL was set up by Krishna Kumar Tibrewal and his family in 2004. The company commenced commercial operations in August 2011. The company manufactures cold-rolled form sections used in wagon manufacturing at its facility at Ranihati-Amta Road, Amta, Howrah (West Bengal). The day-to-day activities are handled by Krishna Kumar Tibrewal and his son Anand Kumar Tibrewal. KARTIKEY RESORTS: ICRA Moves D Rating to Not Cooperating Cat. ------------------------------------------------------------- ICRA Ratings has moved the long-term rating for the INR12.50 crore fund-based bank limits of Kartikey Resorts And Hospitality (P) Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 12.50 [ICRA]D ISSUER NOT COOPERATING; Term Loan Rating moved to the '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 and 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. KRHPL was incorporated in September 2006 and to run a 22 room hotels, namely Hotel Rajhans in Manali. KRHPL was also operating a hotel at Kausauli however it's been closed since January 2015. LALL MINERALS: Ind-Ra Assigns BB- LT Rating, Outlook Stable ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Lall Minerals Private Limited (LMPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR65 mil. Fund-based limits assigned with IND BB-/Stable rating; and -- INR295 mil. Proposed fund-based limits* assigned with Provisional IND BB-/Stable rating. *The rating is provisional and shall be confirmed upon the sanction and execution of loan documents for the above facilities by LMPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The ratings reflect LMPL's short operational track record. The company generated revenue of INR233 million in FY17 by exporting 104,900 metric tons of iron ore fines. As of 11MFY18, it achieved revenue of INR805 million. In FY17, interest coverage (operating EBITDA/net interest expense) was 4.57x, financial leverage (total adjusted net debt/operating EBITDAR) was 5.71x and operating margin was 6.47%. The ratings also factor in the company's modest liquidity position as reflected by 88.63% average maximum utilization of its fund- based limits during the 12 months ended February 2018. However, the ratings are supported by LMPL's promoters' more than 14 years of experience in the trading of iron ore, iron ore fines and iron ore pellets. RATING SENSITIVITIES Negative: Deterioration in the overall credit profile will be negative for the ratings. Positive: An improvement in the scale of operations and overall credit metrics will be positive for the ratings. COMPANY PROFILE Incorporated in September 2005, LMPL is engaged in the trading of iron ore, iron ore fines and iron ore pellets. LIFESTILE REALTY: ICRA Keeps B Rating in Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings said the rating for the INR13.00 crore bank facilities of The Lifestile Realty continues to remain in the 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 13.00 [ICRA]B(Stable) ISSUER NOT Loan COOPERATING; Rating continues to remain in the '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. Established in 2014, The Lifestile Realty is developing a residential real estate project 'Amaltas' at Undri, Pune. TLR is a partnership firm promoted by Mr. Arif Chowhan and his son Mr. Ashraf Chowhan. The firm is a part of Hindustan Group which is established in 1999 and promoted by Mr. Arif Chowhan. Mr. Arif Chowhan is engaged in real estate development in Pune for around 2 decades and has already developed around 3.5 lacs sq ft area of which about 2.4 lacs sq. ft. has been developed by himself and ~1.1 lacs sq. ft. jointly with other real estate players in Pune underlining the vast experience of promoters in real estate business. LINUS PROCESSORS: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Linus Processors Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR88 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB-(ISSUER NOT COOPERATING) rating; and -- INR60 mil. Non-fund-based working capital limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 22, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Linus Processors is engaged in dyeing fabrics and has an installed capacity of 13MT/day. LOGIX SOFT-TEL: ICRA Withdraws B+ Rating on INR400cr Loan ---------------------------------------------------------- ICRA Ratings has withdrawn the long term rating of [ICRA]B+ assigned to the INR400.0-crore NCD programme of Logix Soft-Tel Private Limited (LSTPL). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non Convertible Debentures (NCD) 400.0 [ICRA]B+ (Stable); Withdrawn Rationale The rating has been withdrawn as the company has fully paid the instrument and there is no amount outstanding against the rated instrument. The rating withdrawn is in accordance with ICRA's policy on withdrawal. LSTPL is the holding company of the Logix Group, which has delivered a built-up area of more than four million sq.ft in Noida, Uttar Pradesh. The Logix Group is in the business of developing real estate (both residential and commercial), and generally each individual project is executed in a separate, project-specific entity. The promoter, Mr. Shakti Nath, along with his wife and son, directly or indirectly holds a majority share in all the group entities, other than one Joint Venture (JV) included in this NCD transaction. The main operations of LSTPL are concentrated in the leased commercial space of Sector-16, Noida, called 'Logix Park'. The NCD's which were earlier held by a Foreign Portfolio Investment (FPI) investor, Apollo Asia RE Singapore II PTE Ltd., have been transferred to a domestic investor, Logix Buildtech Private Limited, and have been delisted from the Bombay Stock Exchange (BSE). BSE has confirmed the suspension of the trading in the debenture. MCNALLY BHARAT: CARE Moves D Rating to Not Cooperating Category --------------------------------------------------------------- CARE Ratings has been seeking information from McNally Bharat Engineering Company Ltd (MBEL) to monitor the ratings vide email communications/letters dated March 9, 2018, March 5, 2018, Feb. 13, 2018, Feb. 2, 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, MBEL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on MBEL's bank facilities/ instruments will now be denoted as CARE D/CARE D (RPS); ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 105 CARE D; Issuer not cooperating; Facilities based on best available information Short-term Bank 40 CARE D; Issuer not cooperating; Facilities based on best available information Non-Convertible 43.50 CARE D (RPS); Issuer not Redeemable cooperating; Based on best Preference Shares available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. CARE has also withdrawn the outstanding ratings of 'CARE D/CARE D' assigned to the long/short bank facilities of MBEL with immediate effect as the company has surrendered the aforementioned bank facilities rated by us and there is no amount outstanding under the facility as on date. Further, CARE has withdrawn the outstanding ratings of 'CARE D' assigned to certain bank facilities of MBEL at the request of MBEL and 'No Objection Certificate' received from the banks that have extended the facilities rated by CARE. The ratings take into account the instances of delays in debt servicing by the company due to stressed liquidity position arising out of continued cash losses in FY17 (refers to the period April 1 to March 31) and 9MFY18 and increase in working capital requirements to finance the stretched operating cycle. Detailed description of the key rating drivers At the time of last rating on September 14, 2016, the following were the rating weaknesses (updated for the information available from the company): Key Rating Weaknesses Delays in debt servicing by the company due to loss and stretched operating cycle: The liquidity position of the company has been stressed due to continuing losses in FY17 and stretched operating cycle. This has led to instances of delays in servicing of debt obligations. MBEL has high working capital requirement due to elongated operating cycle. The operating cycle has been stretched due to delays in collection from debtors. High overall gearing ratio: The capital structure of MBEL is highly leveraged due to erosion of networth resulting from continuing losses and significant increase in debt level. As on March 31, 2017, overall gearing was about 30x. MBEL, incorporated in 1961, based in Kolkata, is one of the established engineering turnkey project execution companies of India belonging to the B. M. Khaitan group. MBEL has completed more than 320 turnkey projects in different areas of its operations like bulk material handling, ash handling, port handling, mineral beneficiation plant, water management, road construction and maintenance, structural fabrication, erection, piping, utilities, etc. MBEL incurred net loss of INR58.28 crore on operating income of INR2237.63 crore in FY17. MEHADIA SALES: Ind-Ra Maintains 'D' Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Mehadia Sales Trade Corporation Private Limited's Long-Term Issuer Rating in the non-cooperation 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 continue to appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are as follows: -- INR150 mil. Fund-based limit (Long-term) maintained in Non- Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; -- INR200 mil. Non-fund-based limit (Short-term) maintained in Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; -- INR350 mil. Proposed fund-based limit (Long-term) maintained in Non-Cooperating Category with Provisional IND D(ISSUER NOT COOPERATING) rating; and -- INR300 mil. Proposed non-fund-based limit (Short-term) maintained in Non-Cooperating Category with Provisional IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 3, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Mehadia Sales Trade Corp trades mainly in TMT bars in Maharashtra, Karnataka, Odisha, Chhattisgarh and Madhya Pradesh. Its registered office is in Nagpur. MOOKAMBIKA CONST: Ind-Ra Assigns BB+ LT Rating on INR138MM Limits ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned SVS Mookambika Constructions Private Limited (SVS Mookambika) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is as follows: -- INR138 mil. Fund-based working capital limit assigned with IND BB+/Stable/IND A4+ rating. KEY RATING DRIVERS The ratings reflect SVS Mookambika's increasing-but-modest scale of operations. Revenue increased to INR673.3 million in FY17 (FY16: INR576.5 million) due to healthy execution of work orders. Ind-Ra expects revenue to grow in FY18, in view of 9MFY18 figure of INR700 million. At end-December 2017, the company had an order book of INR3,446.1 million (5.1x of FY17 revenue) through direct and sub contract basis, providing revenue visibility for the medium term. The ratings also reflect SVS Mookambika's modest liquidity position. Its average peak use of the fund-based limits was 95% during the 12 months ended February 2018 and its net cash conversion cycle was long at 97 days in FY17 (FY16: 107 days) due to the requirement to keep inventory at multiple project sites to execute work orders. However, the ratings are supported by the company's stable profitability, comfortable credit metrics, positive cash flows and geographically diversified revenue. EBITDAR margins were in the range of 11.5%-13.4% during FY14-FY17. The company has included a price escalation clause in most of its contracts, which safeguards its margins. Net leverage (adjusted net debt/operating EBITDAR) was 2.0x in FY17 (FY16: 1.9x) and EBITDAR interest cover was 3.2x (3.4x). SVS Mookambika has generated positive cash flow from operations and funds flow from operations since FY14. The company executes orders in the states Telangana, Andhra Pradesh, Karnataka and Odisha. The ratings are also supported by the company's promoter's experience of around three decades in the civil construction industry. RATING SENSITIVITIES Negative: A decline in revenue and/or EBITDA margin leading to deterioration in the credit metrics on a sustained basis and/or any deterioration in the net cash conversion cycle leading to stressed liquidity will be negative for the ratings. Positive: A substantial improvement in the revenue and stable profitability and credit metrics on a sustained basis could lead to a positive rating action. COMPANY PROFILE SVS Mookambika, incorporated in 2009, is located in Vizianagaram, Andhra Pradesh. It undertakes road development and maintenance contracts floated by the governments of Telangana, Andhra Pradesh, Karnataka and Odisha. PUNJAB BIOMASS: CARE Moves D Rating to Not Cooperating Category --------------------------------------------------------------- CARE Ratings has been seeking information from Punjab Biomass Power Limited (PBPL) to monitor the rating(s) vide e-mail communications/letters dated January 22, 2018, January 29, 2018 and February 28, 2018 and numerous phone calls. However, despite CARE's repeated requests, PBPL 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, Punjab Biomass Power Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Punjab Biomass Power Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 24.58 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). Detailed description of the key rating drivers Key Rating Weaknesses Delay in debt servicing: Due to the weakened liquidity position, there are instances of delays in debt servicing by PBPL. Punjab Biomass Power Ltd. (PBPL), a Joint Venture (JV) between Bermaco Energy Systems Ltd. (BESL) and IL&FS Renewable Energy Limited (IREL) is a 12 MW biomass-based (paddy straw) operational power plant in Patiala district, Punjab. IREL holds 50% of the equity stake, 44.31% is held by Bermaco Group companies and remaining 5.70% is held by Gammon Infrastructure Projects Limited (GIPL). Bermaco Group commenced its operation in early 1960s and has an engineering background. Bermaco Energy Systems Limited (BESL), Bermaco group's dedicated venture in power sector started in 1996. BESL successfully re-commissioned 10MW paddy straw based power plant at Jhalkheri, Punjab in 2002 from M/S Punjab State Electricity Board under an O&M performance contract. The other JV partner, IL&FS Renewable Energy Limited (IREL) is a wholly owned subsidiary of IL&FS Energy Development Company Limited (IEDCL, rated CARE A+;stable), which is flagship company for power sector investment for the IL&FS group. IREL is subsidiary, which spearheads all renewable initiatives and investments for the group. R.P. MOTORS: ICRA Keeps 'B' Rating in Not Cooperating Category -------------------------------------------------------------- ICRA Ratings said the rating for the INR5.96 crore bank facilities of R. P. Motors (RPM) 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 Limits 1.86 [ICRA]B (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based Limit- 2.80 [ICRA]B (Stable) ISSUER NOT Cash Credit e-DFS COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based Limit 1.00 [ICRA]B (Stable) ISSUER NOT Cash Credit regular COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Untied limits 0.30 [ICRA]B (Stable) 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. Established in December 2013 as a proprietorship concern, R. P. Motors (RPM) is an automobile dealer and has a showroom-cum- service workshop with 3S facilities (Sales-Services-Spares) in Shillong, Meghalaya. The entity is at present the sole authorised dealer of Ford India Private Limited (FIPL) in Meghalaya, and also sells and services vehicles. The entity also sells spare parts and accessories and trades in second hand cars of any make. RPM is managed by the proprietor, Mr. Renikton Lyngdoh. RAJARAM FLOUR: ICRA Lowers Rating on INR12cr LT Loan to D --------------------------------------------------------- ICRA has downgraded the long-term rating from [ICRA]BB- (Stable) to [ICRA]D assigned to the INR12.00-crore long-term bank facilities of Rajaram Flour Mills Private Limited (RFMPL). The rating has been removed from 'Issuer Non-Cooperation' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Fund- 12.00 [ICRA]D; revised from based [ICRA]BB- (Stable) and removed from issuer non-cooperation category Rationale The rating revision takes into account the recent delays in servicing of debt obligations, owing to the stretched liquidity position of the company. Key rating drivers Credit strengths Extensive experience of the promoter: The managing director of the company, Mr. G Balasubramanian, has a long presence in the flour- milling industry for more than two decades. Favorable demand prospects of the industry: The demand prospects of the industry are expected to remain stable, as the wheat flour forms an essential ingredient of Indian diet. Credit challenges Stretched liquidity position: RMFPL's liquidity position stretched in the recent past due to financial support provided to other group entities and the same has resulted in over-utilisation of working capital facility for more than 30 days. Intense competition prevailing in the industry keeps margins under check: The intense competition prevailing in the flour-milling industry as characterised by presence of a large number players along with low value-additive nature of operations, limits the company's pricing flexibility and keeps the profit margins under check. Susceptibility of raw material availability to agro-climatic conditions: The flour-milling industry is exposed to agro-climatic risks which might affect the availability of wheat in adverse weather conditions. Rajaram Flour Mills Private Limited was established in 1986 by Mr. G Balasubramanian. The manufacturing facility of RFMPL is located in Madurai and has an installed capacity to grind 70 MT of wheat per day. RMFPL manufactures various wheat products including maida, wheat flour (atta) and sooji, among others. The products are sold under the brand name 'Annalakshmi'. Besides, the company also engages in trading of wheat and sale of by-products including bran, bran flakes and dust. RAJSHRI IRON: Ind-Ra Migrates B Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rajshri Iron Industries Private Limited's (RIIPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR146.5 mil. Fund-based limits migrated to Non-Cooperating Category with IND B(ISSUER NOT COOPERATING) rating; -- INR33.3 mil. Long-term loans due on February 28, 2018 migrated to Non-Cooperating Category with IND B(ISSUER NOT COOPERATING) rating; and -- INR3.5 mil. Non-fund-based limits migrated to Non-Cooperating Category with IND A4(ISSUER NOT COOPERATING)rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 7, 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 2004, RIIPL manufactures sponge iron. The company commenced commercial production in FY10 at its 60,000mtpa plant in Jamuria, West Bengal. RELIABLE SPACES: ICRA Moves B+ Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA has moved the long-term ratings for the bank facilities of Reliable Spaces Private Limited to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 185.0 [ICRA]B+ (Stable) ISSUER NOT Loan COOPERATING; Rating moved to the '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 dated 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. Reliable Spaces Private Limited, promoted by the Sequeira family, currently has 2 buildings at Airoli (Navi Mumbai) which have been entirely leased out to corporates on a leave and license basis. The two buildings are Reliable Plaza and Reliable Liberty Tower. Apart from that, the company also has a call centre business wherein ~1000 employees are employed who manages ~5.4 million calls per month. In FY2014, the business of Reliable Spaces Private Limited was merged into Reliable Informatics Park Private Limited (an entity with minimal business operations); and in FY2015, the name of Reliable Informatics Park Private Limited was changed to Reliable Spaces Private Limited. SIDDHI GANESH: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Siddhi Ganesh Rice Industries' (SGRI) 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 B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are as follows: -- INR57.5 mil. Fund-based limits migrated to Non-Cooperating Category with IND B+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 10, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SGRI was incorporated in 2008 by the Kela family of Kurud, Chhattisgarh for setting up a 14,400mtpa paddy processing unit in the Dhamtari district. SIDDHARTHA BUILDHOME: CARE Moves D Rating to Not Cooperating ------------------------------------------------------------ CARE Ratings has been seeking information from Siddhartha Buildhome Private Limited to monitor the rating vide e-mail communications dated Feb. 27, 2018, March 1, 2018, 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 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 Siddhartha Buildhome Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 129.00 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. The ratings take into account the ongoing delays in the debt servicing. Detailed description of the key rating drivers At the time of last rating on April 14, 2017, the following were the rating strengths and weaknesses: Key Rating Weaknesses Delays in debt servicing: There have been on-going delays by SBPL in servicing of its debt obligations. This could be attributed to the tight liquidity position of the company owning to slowdown in real estate market leading to slow sales and collection from customers. Limited experience of Promoters in the Industry: SBPL is promoted by Mr. Sidharth Chauhan and Mr Randhir Singh Chauhan. Mr. Sidharth Chauhan has been into consolidation and aggregation of land for more than 15 years for companies like Adani Group, DLF, NYK Logistics, Panacea Biotech, etc. The group entered into the real estate development by launching its first project in Gurgaon in the year 2009. As the promoters are in real estate business through other related activities of real estate, the experience of the promoters remains limited in the real estate development so far. Subdued Real Estate Scenario: As per market sentiments the India Real Estate Market may not witness a sharp reversal in FY17 (refers to the period April 1 to March 31) but in long term the growth prospects remain strong. While the sector continues to remain troubled with issues of high unsold inventory, delayed delivery of projects and financial stress on developers, the only segment that showed some signs of a rebound was the affordable housing category in the peripheries of the major markets. The broader market opinion is that while the long-term story for residential market remains strong; the short term is expected to be sluggish. Key Rating Strengths Locational Advantage: Two of the company's projects NCR - Greens & Lotus projects are located on Pataudi road, sector 95, Gurgaon. The project is adjacent to KMP corridor (Kundli Manesar Palwal Expressway) and has two-way connectivity from NH-8 and proposed Dwarka Manesar Expressway. The other project Estella is running adjacent to the upcoming 150 meter wide Northern Peripheral Expressway (joining Delhi- Dwarka & IGI Airport to NH-8). The proximity to NH8 and the upcoming metro line is expected to provide superior connectivity with the rest of the city and makes the locations easily accessible. However, all projects within the company and the other projects within the group are in Gurgaon thereby exposing it to geographical concentration risk. Experienced Management SBPL is managed by experienced personnel with long vintage in the real estate industry. SBPL (formerly Pashupati Buildwell Pvt Ltd) is a real estate developer, engaged in the development of residential/ group housing project in Gurgaon (Haryana). SBPL is promoted by Mr Sidharth Chauhan and Mr Randhir Singh Chauhan. SBPL has recently completed phase I of NCR project, i.e., NCR One (Sector 95, Gurgaon) with saleable area of 2.56 lsf and is currently engaged in the construction and development of projects, viz., phase II of NCR project, i.e., NCR- Greens & Lotus (Sector 95, Gurgaon) with saleable area of 6.41 lsf and Estella project (Sector 103, Gurgaon) with saleable area of 8.73 lsf. During FY16, SBPL had reported a PAT of INR1.41 crore on total income of INR68.93 crore as against PAT of INR4.06 crore on total income of INR98.56 crore in FY15. SINHGAD TECHNICAL: CARE Moves D Rating to Not Cooperating Cat. -------------------------------------------------------------- CARE Ratings has been seeking information from Sinhgad Technical Education Society to monitor the rating(s) vide e-mail communications and letters dated February 12, 2018, February 13, 2018, February 15, 2018, February 8, 2018 and numerous phone calls. However, despite CARE's repeated requests, the institute 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, Sinhgad Technical Education Society has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Sinhgad Technical Education Society's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING; Based on best available information. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 426.24 CARE D; ISSUER NOT COOPERATING; Facilities Based on best available Information Short term Bank 16.45 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 assigned to the bank facilities of Sinhgad Technical Education Society (STES), continue to factor in the ongoing delays in debt servicing by STES due to its stressed liquidity position. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: There are on-going delays in servicing of its debt obligations of bank facilities due to the society's stretched liquidity position. STES was registered under the Societies Registration Act, 1860 in August 1993. It was also registered under the Bombay Public Trust Act, 1950. STES manages higher education colleges and pre-primary, primary and secondary schools. These schools and colleges provide full time courses in the fields of Engineering, Management, Pharmacy, Architecture, Gemology and Jewellery Designing, etc. SRI VENKATESWARA: ICRA Reaffirms B+ Rating on INR8.25cr Loan ------------------------------------------------------------ ICRA Ratings has reaffirmed the long-term rating at [ICRA]B+ to the INR8.25-crore cash credit, INR0.08-crore term loan and INR0.67-crore unallocated limits of Sri Venkateswara Rice Mill. The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based/CC 8.25 [ICRA]B+(Stable) Reaffirmed Term Loan 0.08 [ICRA]B+(Stable) Reaffirmed Unallocated 0.67 [ICRA]B+(Stable) Reaffirmed Rationale The rating factors in SVRM's weak financial profile characterized by high gearing, low operating profitability and weak coverage indicators for FY2017. The rating is further constrained by modest scale of operations, high working capital intensity and highly fragmented and competitive nature of the rice-milling industry which limits the firm's ability to pass on the hike in input costs to the customers. ICRA notes that the performance of the industry depends on the government's minimum support price (MSP) policy and also the agro-climatic risks which impact the availability of paddy. The rating is also constrained by the risks associated with partnership nature of the firm. The rating, however, draws comfort from the long track record of the promoters in the rice mill business and the strategic location of mill which results in easy availability of paddy. Moreover, ICRA also takes into account the favorable demand prospects for rice industry, with rice being a staple food grain and India's position as world's second largest producer and consumer of rice. Outlook: Stable ICRA believes SVRM will continue to benefit from the extensive experience of its promoters in the rice-milling industry. The outlook may be revised to 'Positive' if substantial growth in revenue and profitability, and better working capital management, strengthens the financial risk profile. The outlook may be revised to 'Negative' if cash accrual is lower than expected, or if any major capital expenditure, or stretch in the working capital cycle, weakens liquidity. Key rating drivers Credit strengths Significant experience of the management: The management has more than two decades years of experience in the rice milling industry resulting in an established relationship with customers. Favorable location of the unit: The mill is located in East Godavari District, Andhra Pradesh, a major paddy growing region, ensuring raw material availability at competitive rates. All the paddy requirements are met locally through direct purchases from farmers and from traders in some months. Favorable demand prospects for rice: Demand prospects of the industry are expected to remain good as rice is a staple food grain and India is the world's second largest producer and consumer of rice. Credit weaknesses Weak financial profile: The firm has modest scale of operations with revenues of INR31.19 crore in FY2017, limiting its financial flexibility. The firm's financial profile is characterised by high gearing of 1.86 times as on March 31, 2017, low operating margin of 3.97% in FY2017 and stretched coverage indicators with an interest coverage ratio of 1.35 times, Total Debt/OPBITDA of 7.50 times and NCA/total debt ratio of 3% for FY 2017. High working capital intensity: The working capital intensity of the company has been high at 40% in FY2017 owing to high inventory holding. The inventory days increased to 198 as on March 31, 2017 from 147 as on March 31, 2016 owing to high procurement during the end of the year. Highly competitive nature of industry: Rice milling industry is highly competitive with presence of a large number of organised and unorganised players, impacting the margins. Industry susceptible to agro-climatic risks and government policies: The rice-milling industry is susceptible to agro- climatic risks, which can affect the availability of the paddy in adverse weather conditions. It is also exposed to government policies such as MSP, affecting the raw material prices. Partnership nature of the firm: Given SVRM's constitution as a partnership firm, it is exposed to risks including the possibility of withdrawal of capital by the partners. Sri Venkateswara Rice Mill is a partnership firm established in 1999 and is involved in the milling of paddy for production of non-basmati rice products (raw rice and boiled rice). The milling unit is located in East Godavari district, Andhra Pradesh with an installed capacity of 8TPH. In FY2017, the company reported a net profit of INR0.10 crore on an operating income of INR31.19 crore, as compared to a net profit of INR0.17 crore on an operating income of INR30.30 crore in the previous year. SUKATA TRACTOR: Ind-Ra Assigns B+ LT Rating, Outlook Stable ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sukata Tractor Parts Private Limited (STPPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR62.50 mil. Fund-based working capital limits assigned with IND B+/Stable/IND A4 rating; -- INR10 mil. Proposed term loan* assigned with Provisional IND B+/Stable rating; and -- INR1.99 mil. Term loans due on November 2021 assigned with IND B+/Stable rating. *The rating is provisional and shall be confirmed upon the sanction and execution of loan documents for the above facility by STPPL to the satisfaction of Ind-Ra. KEY RATING DRIVERS The ratings are constrained by STPPL's small scale of operations and weak credit metrics, due to intense competition in the auto ancillary industry. Revenue improved to INR229.04 million in FY17 (FY16: INR207.60 million) on account of an increase in government tenders. EBITDA margins declined marginally to 7.40% in FY17 (FY16: 7.56%) on account of an increase in labor cost. Interest coverage (operating EBITDA/gross interest expense) was 1.74x in FY17 (FY16: 1.80x) and net leverage (adjusted net debt/operating EBITDAR) was 5.54x (5.31x). The decline in credit metrics was mainly on account of an increase in interest cost and a decline in EBITDA. The ratings are further constrained by the company's stressed liquidity position, as evidenced by almost full working capital utilization for the 12 months ended March 2018. The ratings continue to be supported by the company's and its promoter's over two decades of experience in manufacturing railway coach components and tractor parts. RATING SENSITIVITIES Negative: Debt-led capex leading to deterioration in credit metrics and/or stress on the liquidity of the company will be negative for the ratings. Positive: A significant improvement in the top line and current credit metrics will be positive for the ratings. COMPANY PROFILE STPPL was incorporated in April 1996 and is engaged in manufacture of rail coach components and tractor parts. SURYA FOODS: ICRA Keeps 'B' Rating in Not Cooperating Category -------------------------------------------------------------- ICRA Ratings said the rating for the INR10.0 crore bank facilities of Surya Foods (SF) continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] B (Stable) ISSUER NOT COOPERATING". 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. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Cash 5.0 [ICRA]B (Stable) ISSUER NOT Credit COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Fund based-Term 2.50 [ICRA]B (Stable) ISSUER NOT Loan COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Unallocated 2.50 [ICRA]B (Stable) ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category SF was established as a partnership firm in 2013 and started operating from January 2014 onwards. SF is engaged in milling & sorting of rice to produce raw and parboiled rice and is promoted by Mr. Raj Kumar, Kidar Nath and Mr. Ashok Kumar all of whom have previous experience in the rice milling business. The manufacturing facility of the company is located in Patran region Patiala, Punjab and is equipped with the requisite machinery. TIRUPATI STARCH: Ind-Ra Migrates BB LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Tirupati Starch & Chemicals Limited's (TSCL) 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 are: -- INR80 mil. Fund-based limits migrated to Non-Cooperating Category with IND BB(ISSUER NOT COOPERATING) rating; and -- INR132.6 mil. Term loans due on March 2019-March 2020 migrated to Non-Cooperating Category with IND BB(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 7, 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 1985, TSCL is primarily engaged in the wet milling of maize corn for manufacturing unmodified/modified starch and other by-products (such as maize corn germs, grits and gluten) for the textile, food, pharmaceuticals, chemical paper, poultry and other industries in India and abroad. It is an ISO 9001:2008 certified company and a renowned corn starch manufacturer in central India. UJALA MINERALS: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Ujala Minerals' (Ujala) 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 are: -- INR100 mil. Fund-based limits migrated to Non-Cooperating Category with IND BB-(ISSUER NOT COOPERATING) rating; and -- Proposed non fund-based limits migrated to Non-Cooperating Category with Provisional IND A4+(ISSUER NOT COOPERATING) rating; COMPANY PROFILE Incorporated on March 15, 2004, Ujala is a partnership firm engaged in the trading of iron ore and iron ore fines. Its partners are Mr. Ramesh Chandra Moharana and Mr. Anil Jaiswal. ULTRA HOME: CARE Migrates D Rating to Not Cooperating Category -------------------------------------------------------------- CARE Ratings has been seeking information from Ultra Home Construction Private Limited to monitor the rating vide e-mail communications dated March 1, 2018, March 5, 2018, March 6, 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 on Ultra Home construction Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 204.56 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. The ratings take into account the ongoing delays in the debt servicing. Detailed description of the key rating drivers At the time of last rating on April 14, 2017, the following were the rating strengths and weaknesses: Key Rating Weaknesses Delays in debt servicing: There have been on-going delays by UHCPL in servicing of its debt obligations. This could be attributed to the tight liquidity position of the company owning to slowdown in real estate market leading to slow sales and collection from customers. M/s Ultra Home Construction Private Limited (UHCPL) was incorporated in April 2004 as a private limited company to carry out real estate development in both residential and commercial segment. UHCPL founded by Mr Anil Kumar Sharma is the flagship company of Amrapali group; the group has more than 16 years of experience with completed projects (both residential and commercial) spread over 100 acres in Delhi-NCR and Greater Noida market. UHC had undertaken a commercial project Amrapali Tech-Park in April 2010. UHCPL had completed the said project in FY14 (refers to the period April 1 to March 31) at a total cost of INR722 crore. VAGDEVI FOOD: ICRA Assigns B+ Ratings to INR32cr Loans ------------------------------------------------------ ICRA Ratings assigned [ICRA]B+ rating to INR20.00 crore fund-based limits of Vagdevi Food Products Pvt. Ltd. ICRA also has [ICRA]B+ rating outstanding for INR12.00 crore term loan facility of Vagdevi Food Products Pvt Ltd (VFPPL). The outlook on the long- term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loan 12.00 [ICRA]B+(Stable) outstanding Fund based limits 20.00 [ICRA]B+(Stable) assigned Rationale The assigned rating is constrained by nascent stage of operations with commercial production starting in December 2017; intensely competitive nature of the rice industry which restricts the ability of the players to pass on hike in input costs; and volatility in paddy prices and adverse change in regulations which will impact revenues and profitability margins. Moreover, the debt funded nature of capex is likely to put pressure on servicing term loan repayment obligations in the initial period with repayments starting from March 2018. The rating however takes comfort from longstanding experience of the promoters in rice milling industry; positive demand prospects for rice and favourable location of the plant ensuring easy availability of raw material which results in savings in logistic costs. Outlook: Stable ICRA believes VFPPL will continue to benefit from the extensive experience of its partners in the rice milling business. The outlook may be revised to 'Positive' if substantial growth in revenue and profitability, and efficient working capital management. The outlook may be revised to 'Negative' if cash accrual is lower than expected, or if any major capital expenditure, or stretch in the working capital cycle, weakens liquidity. Key rating drivers Credit strengths Experience of promoters in milling industry spanning over 20 years: Incorporated in 2017 by Mr. Ranga Srikar and Mr. Ranga Ranzith who are also directors of RSV Rice Industries (rated at [ICRA]B+) and Miryalguda Rice Industries Pvt. Ltd. VFPPL operates a non-basmati rice mill with capacity of 16 ton per hour and the company is also setting up 380 tons per day parboiling rice milling unit which is expected to be operational from March 2018. The company manufactures raw rice, broken rice, bran and param. Favourable location of the plant ensuring timely availability of raw material saving on logistics costs: VFPPL is in Nalgonda district, which is easily accessible to many paddy producing districts in Telangana as well as coastal districts of Andhra Pradesh. The main suppliers are farmers and agents. Credit challenges Nascent stage of operations: The company started commercial operations on December 13, 2017. Timely ramp-up of production remains crucial to service the term loan repayments in a timely manner which is starting from March 2018. The total project cost is INR24.72 crore which was funded by INR12.00 crore term loan, INR8.00 crore promoter contribution and remaining through unsecured loans. Volatility in paddy prices and adverse change in regulations: The rice industry is highly regulated by the government as it is seen as an important sector which could affect the food security of the country. Government intervenes in the non-basmati rice market through minimum support price (MSP) for paddy and export restrictions on rice. High working capital intensive nature of rice milling business: Rice milling is a working capital intensive business as the rice miller have to stock paddy by the end of each season till the next season as the price and quality of paddy is better during the harvesting season. Moreover, the paddy is procured from the farmers generally against immediate payments while the millers have to extend credit to wholesalers who sell rice to retailers. This results in high working capital intensity. Mr. Ranga Srikar and Mr. Ranga Ranzith acquired Sri Sai Pavan Rice Industries Pvt Ltd in November 2017. The company has 2 manufacturing units for making raw non-basmati rice with capacity of 8 ton per hour each. The company started commercial operations on December 13, 2017. The company manufactures raw rice, broken rice, bran and param. VFPPL started the construction of parboiling unit on November 23, 2017. It's expected to be operational in March 2018. VIJAI MAHALAXMI: Ind-Ra Migrates 'D' Rating to Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Vijai Mahalaxmi Spinning Mills India Private Limited's (VMSM) 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 D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are as follows: -- INR240.1 mil. Term loan (Long-term) maintained in Non- Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; -- INR170 mil. Fund-based working capital limits (Long-term) Maintained in Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; and -- INR30 mil. Non-fund-based working capital limits (Short-term) maintained in Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 7, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE VMSM was incorporated in 2010 and began commercial operations in December 2011. The company has an installed capacity of 12,960 spindles located in Dharapuram Taluk, Tirupur District. It procures Shankar-6 type cotton from Gujarat and Maharashtra and caters mainly to Tirupur markets. C Dhandapani, D Prena and K.S Padmavathi are the directors of the company. VIJAY SHEETS: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Vijay Sheets & Strips Private Limited's (VSSPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR390 mil. (increased from INR345 mil.)Fund-based working capital limit affirmed with IND BB-/Stable/IND A4+ rating; and -- INR10 mil. Non-fund based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects VSSPL's continued weak margins and credit metrics, owing to the trading nature of the business. In FY17, EBITDA margins were 1.8% (FY16: 2.2%), net leverage (Ind-Ra adjusted net debt/operating EBITDAR) was 11.6x (12.7x) and interest coverage (operating EBITDA/gross interest expense) was 1.5x (1.3x). The credit metrics marginally improved in FY17 due to a slight decrease in the year-end total debt, lower interest rate regime and an increase in the absolute EBITDA. Ind-Ra opines high working capital intensity and thin operating profitability limit any significant improvement in the credit metrics. The company's peak utilization of the working capital limits was around 97% during the 12 months ended February 2018 owing to the working capital intensive nature of operations. Also, the scale of operations remains modest. This was despite 34.4% yoy growth in revenue to INR2,054 million in FY17, driven by increased sales volumes, led by expanded dealership network, resulting from stable demand for steel products. For the 10 months of FY18, revenue was around INR1,700 million. The ratings are supported by the company being the sole distributor of Tata Steel Ltd.'s ('IND AA'/RWE) cold-rolled products (branded as Tata Steelium) in Andhra Pradesh and Telanagana. Also, the established track record of the company and around three decades of experience of its promoters in trading steel products benefit the ratings. RATING SENSITIVITIES Positive: Substantial revenue growth leading to an improvement in the overall credit metrics on a sustained basis will be positive for the ratings. Negative: A decline in the revenue or a rise in margin pressures leading to deterioration in the credit metrics on a sustained basis will be negative for the ratings. COMPANY PROFILE VSSPL was incorporated in 2007 as a private limited company. The company is a trading concern dealing in steel products. VISITOR GARMENTS: Ind-Ra Keeps 'BB' Rating in Non-Cooperating Cat. ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Visitor Garments' Long-Term Issuer Rating in 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 continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is as follows: -- INR100 mil. Fund-based working capital limit maintained at non-cooperating category with IND BB (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1988, Visitor Garments manufactures and exports garments. =============== M A L A Y S I A =============== BERTAM ALLIANCE: Bursa Denies Bid to Waive PN17 Classification -------------------------------------------------------------- Ahmad Naqib Idris at theedgemarkets.com reports that Bertam Alliance Bhd has been classified as an affected listed issuer under Practice Note 17 (PN17) as Bursa Malaysia has rejected its application for a waiver. According to theedgemarkets.com, the company said the bourse made its decision after taking into consideration the winding-up order against its wholly-owned unit Bertam Development Sdn Bhd (BDSB), which accounts for at least 50% of the company's total assets. Although BDSB had appealed against the winding-up order, it said there is no certainty that the order can be set aside in the near future, the report says. theedgemarkets.com notes that pursuant to its status as a PN17 issuer, Bertam is required to regularise its financial condition within 12 months from April 4 and will have to submit a regularisation plan to the regulators if the plan will result in a significant change in the business direction or policy of the company. The report says the company has to subsequently implement the plan within a timeframe stipulated by the regulators. In the event that Bertam fails to comply with the obligations, Bursa will suspend the trading of the company's listed securities and delist the company, subject to its right to appeal against the delisting, theedgemarkets.com adds. "As at the date of this announcement, the board of Bertam will, amongst others, endeavour to set aside and/or terminate the winding order made against BDSB in due course and look into formulating a plan to regularise its financial condition, if required. "The company will make an appeal to Bursa Securities against its PN17 status after setting aside and/or terminating the winding order against BDSB," the company said, theedgemarkets.com relays. Bertam Alliance Berhad -- http://www.bertamalliance.com/-- engages in property and plantation development activities in Malaysia. ================= S I N G A P O R E ================= UTAC HOLDINGS: To Explore $1 Billion Sale of Business ----------------------------------------------------- Joyce Koh at Bloomberg News reports that UTAC Holdings Ltd., the Singapore-based chip testing firm backed by Affinity Equity Partners and TPG, is exploring options for a sale of its business after completing a bond restructuring, people with knowledge of the matter said. The company met potential advisers in recent weeks to discuss options that could include an initial public offering or sale, according to the people, Bloomberg relates. Its owners could seek a valuation of about $1 billion including debt from any exit, the people said, asking not to be identified because the information is private. According to Bloomberg, Global A&T Electronics Ltd., which controlled most of UTAC's operations, filed for bankruptcy in the U.S. in December with a plan to quickly turn itself around. It said the debt load taken on from its buyout a decade ago had prevented the company from growing its business. UTAC completed a capital restructuring in January, cutting its funded debt from about $1.1 billion to $665 million, Bloomberg notes. Affinity Equity Partners and TPG bought UTAC in a SGD2.2 billion ($1.7 billion) leveraged buyout in 2007, the report discloses. According to Bloomberg, UTAC's private equity owners have made several previous attempts at exiting their investments in the company. They had pursued a Singapore IPO in 2011, people with knowledge of the matter said at the time. UTAC later filed for a U.S. share sale in 2015, before withdrawing its registration the next year, citing unfavorable market conditions, the report relates. UTAC said in February its net loss for 2017 narrowed to $81.4 million, compared with $95.1 million a year earlier, Bloomberg discloses. Chief Executive Officer John Nelson said in January UTAC is in talks about acquisitions with at least five industry peers as it seeks to pick up factories in Southeast Asia. Since the 2007 buyout, UTAC has bought three Panasonic plants in Singapore, Malaysia and Indonesia to expand into the automotive and industrial end markets, according to its website. Based in Singapore, UTAC Holdings Limited provides semiconductor assembly and testing services worldwide. It offers services for a range of integrated circuits (IC), including analog, mixed-signal, logic, memory, and radio frequency. The company also provides assembly research and development, package assembly, test engineering and development, test, quality assurance and reliability labs, and end of line and drop ship services. It primarily serves integrated device manufacturers, fabless companies, and wafer foundries. UTAC Holdings Limited is a subsidiary of Global A&T Holdings. ============= V I E T N A M ============= VIETNAM: Credit Profile Reflects Robust Growth, Moody's Says ------------------------------------------------------------ Moody's Investors Service says that the Government of Vietnam's (B1 positive) credit profile reflects the economy's robust growth trends. These trends are spurred in turn by the country's increasing competitiveness and a rapid economic transition away from traditional sectors such as agriculture into manufacturing, and further up the value-added scale within these sectors. Moody's expects that strong foreign direct investment (FDI) inflows will continue to diversify Vietnam's economy and strengthen growth compared with similarly rated peers; thereby supporting a stabilization in the government's debt burden. Moody's conclusions are contained in its just-released credit analysis titled "Government of Vietnam -- B1 positive" and which examines the sovereign in four categories: economic strength, which is assessed as "high (-)"; institutional strength "low (+)"; fiscal strength "moderate (-)"; and susceptibility to event risk "high (-)". The report constitutes an annual update to investors and is not a rating action. Moody's explains that Vietnam's real GDP growth accelerated to 6.8% year-on-year in 2017, topping a 6.2% expansion in 2016. Moody's expect real GDP growth to remain robust, averaging 6.7% in 2018, nearly twice as high as the average for B-rated sovereigns of 3.6%, and supported by domestic consumption and by strong investment growth on the back of public sector infrastructure development spending. Rapid domestic credit growth has in part financed strong domestic demand, and continues to significantly outpace nominal GDP growth. Moody's points out that while rapid credit growth presents risks to the banking system, it could also represent a degree of financial deepening. High government debt levels and widening deficits act as a credit constraint, and as Vietnam graduates from the World Bank's International Development Association program, its debt affordability may erode. Nonetheless, a continued shift away from foreign currency financing indicates a deepening in domestic financial markets, which will reduce refinancing risks. The drive to privatize SOEs - which the government refers to as equitization - remains a key policy priority, and has gathered momentum with successful stake sales in large SOEs. Upward rating pressures could come from: (1) the passage of concrete measures that lead to a significant reduction in the government's debt burden; and (2) a further strengthening in the banking system and SOE sector that significantly diminishes contingent risks to the government and lowers macro-financial risks that could stem from boom-bust cycles. Downward pressures could come from: (1) a re-emergence of macroeconomic instability leading to higher inflation, a rise in debt servicing costs, and/or a deterioration in the country's external payments; (2) a material and durable weakening in economic growth compared with rated peers; or (3) a sizeable crystallization of contingent risks from either the banking system or the SOE sector. ********* 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 ***