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/raid1/www/Hosts/bankrupt/TCRAP_Public/180411.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, April 11, 2018, Vol. 21, No. 071 Headlines A U S T R A L I A 5 STARS: First Creditors' Meeting Set for April 19 AA TRADING: Second Creditors' Meeting Set for April 18 BLUESCOPE STEEL: Moody's Hikes Senior Unsecured Rating from Ba1 BRAT HAUS: Second Creditors' Meeting Set for April 18 FAT STAG: First Creditors' Meeting Set for April 20 GOLDEN IT: Second Creditors' Meeting Set for April 18 HELPSTREET MEDICAL: Second Creditors' Meeting Set for April 18 WOLFE CIVIL: Second Creditors' Meeting Set for April 18 * AUSTRALIA: SMEs Would Collapse Without Brokers, Brokerage Says C H I N A AGILE GROUP: Moody's Hikes CFR to Ba2; Outlook Stable H O N G K O N G NOBLE GROUP: Gets More Support for Restructuring Plan I N D I A AJIT KUMAR: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable AMANITA STEELS: Ind-Ra Assigns BB+ Rating to INR50MM Limits AMRIT LAL: Ind-Ra Migrates 'BB' Rating to Non-Cooperating ARENA LIFESTYLE: Ind-Ra Migrates BB- LT Rating to Non-Cooperating AROMA RESTAURANTS: CRISIL Moves B Rating to Not Cooperating Cat. BASAK BOTTLING: CRISIL Assigns B Rating to INR7.3MM LT Loan CAREON HEALTHCARE: CRISIL Moves B+ Rating to Not Cooperating D.V. EXPORT: CRISIL Moves B+ Rating to Not Cooperating Category DEX AGRO: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable EMTELLE INDIA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating ESHYAN INFRATECH: Ind-Ra Migrates 'B+' Rating to Non-Cooperating GR8 CONSTRUCTIONS: CRISIL Raises Rating on INR5MM LT Loan to B+ INDIAN PULP: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating JS GROVER: CRISIL Assigns B+ Rating to INR8MM Cash Loan JCR CINEMA: CRISIL Reaffirms B Rating on INR20MM Term Loan JEWEL CAST: CRISIL Withdraws B Rating on INR5MM Gold Loan MAHARSHEE GEOMEMBRANE: CRISIL Moves D Rating to Not Cooperating MANI EXPORT: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable MEC ENGINEERS: CRISIL Lowers Rating on INR3MM Cash Loan to B+ MEERA GLASS: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating MONNET ISPAT: Lenders Approve JSW Steel-AION's Bid MOTHER INDUSTRIES: CRISIL Lowers Rating on INR5MM Term Loan to D MZ FOOD: CRISIL Moves D Rating to Rating to Not Cooperating Cat. NAGAPATTINAM MUNICIPALITY: Ind-Ra Withdraws 'BB' LT Issuer Rating NIRVANA FASHION: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable PROODLE HOSPITALITY: CRISIL Reaffirms B+ Rating on INR5MM Loan PTS HITECH: CRISIL Migrates B Rating to Not Cooperating Cat. SANTHA CASHEW: CRISIL Assigns B+ Rating on INR5.5MM Cash Loan SB EQUIPMENTS: Ind-Ra Hikes Long Term Issuer Rating to 'BB' SHREE RAMDEV: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating SHREE SHYAM: CRISIL Assigns B+ Rating to INR5MM Cash Loan SRI LAKSHMI: CRISIL Withdraws D Rating on INR45MM Loan STANDARD CORP: CRISIL Lowers Rating on INR15MM Cash Loan to D SUPER FINE: CRISIL Lowers Rating on INR15MM Cash Loan to D TVC ELECTRONICS: CRISIL Ups Rating on INR6MM Cash Loan to B+ UMAXE PROJECTS: CRISIL Lowers Rating on INR10MM Bank Loan to D WHITE BRICKS: CRISIL Moves 'B' Rating to Not Cooperating Category YOGAAAND CO: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating J A P A N TAKATA CORP: Court OKs Compensation Plan Over Defective Air Bags P H I L I P P I N E S EMPIRE RURAL: Creditors Have Until May 7 to File Claims S O U T H K O R E A STX OFFSHORE: Submits Self-Rescue Program to Main Creditor Bank V I E T N A M ASIA COMMERCIAL: Moody's Hikes LT Bank Deposit Rating to B1 - - - - - ================= A U S T R A L I A ================= 5 STARS: First Creditors' Meeting Set for April 19 -------------------------------------------------- A first meeting of the creditors in the proceedings of 5 Stars Meridian Massage Pty Ltd will be held at the offices of Vincents Level 34, 32 Turbot Street, in Brisbane, Queensland, on April 19, 2018, at 10:30 a.m. Steven Staatz of Vincents was appointed as administrator of 5 Stars Meridian on April 10, 2018. AA TRADING: Second Creditors' Meeting Set for April 18 ------------------------------------------------------ A second meeting of creditors in the proceedings of AA Trading (Aust) Pty Ltd has been set for April 18, 2018, at 11:00 a.m. at the offices of Vince & Associates, 51 Robinson Street, in Dandenong, Victoria. 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 17, 2018, at 4:00 p.m. Peter Robert Vince and Paul Langdon of Vince & Associates were appointed as administrators of AA Trading on March 5, 2018. BLUESCOPE STEEL: Moody's Hikes Senior Unsecured Rating from Ba1 --------------------------------------------------------------- Moody's Investors Service has upgraded BlueScope Steel (Finance) Limited's backed senior unsecured rating to Baa3 from Ba1. At the same time, Moody's has assigned a Baa3 issuer rating to BlueScope Steel Ltd. and has withdrawn its Ba1 corporate family rating. The rating outlook is stable. BlueScope Steel (Finance) Limited is a wholly owned financing subsidiary of BlueScope Steel Limited. RATINGS RATIONALE "The upgrade to Baa3 reflects the substantial transformation and improvement in BlueScope's business profile that has occurred over the last several years, which Moody's believe has led to sustained improvements in profitability and earnings stability," says Matthew Moore, a Moody's Vice President and Senior Credit Officer. "The upgrade also reflects BlueScope's track record of maintaining strong credit metrics and conservative financial policy, which Moody's believe is more indicative of an investment-grade financial profile," adds Moore. The company has undergone a transformation process over the last several years, which has resulted in an improved product mix, with a larger proportion of value-added and branded products, as well as improvements in its steelmaking businesses through substantive cost reductions and productivity gains. The improvements in BlueScope's business also reflect increased geographic and operational diversity through the full ownership of its profitable North Star BlueScope Steel operations in the US and improved contributions from underperforming segments through a series of restructuring programs. The above enhancements have in turn strengthened the company's earnings, cash flow generation and profitability. Since the fiscal year ended June 2014 (fiscal 2014), the company has doubled its underlying EBITDA margins to around 14% for the 12 months to December 2017, and more than tripled its underlying EBIT margins to near 10%. The company has also increased free cash flow generation to around AUD600 million per annum. While market conditions have been supportive more recently, a large part of this improvement reflects the significant cost reductions achieved in BlueScope's steelworks, comprised of around AUD300 million of productivity and cost improvements in its Australian Steel Products operation and around NZD80 million in its New Zealand & Pacific Steel operations. The improvement also reflects the benefits from the full ownership of its strongly-performing North American mini-mill operation, North Star, which contributes around a quarter of total EBITDA and generates the highest EBITDA margins of the group, in excess of 20%. While Moody's expects that BlueScope's earnings and profitability will remain subject to global macroeconomic conditions and the cyclical nature of the steel industry, current conditions should continue to support strong earnings and profitability. In addition, the company's improved product mix and breakeven levels will allow for solid earnings generation through the cycle. These attributes are more indicative of an investment-grade business profile. Moody's expects that EBIT margins will remain near 10% for the next 12-24 months and that the company will continue to generate strong free cash flow in excess of AUD500 million per annum. The upgrade is also supported by the company's conservative financial policies and strong credit metrics. BlueScope materially improved credit metrics over the last several years and Moody's expects this to be sustained given the company's financial policy targets, specifically the company's expectation to maintain a zero reported net debt or a net cash position. The company's adherence to financial policies in line with an investment-grade financial profile was also reflected in the recent removal of asset security from its credit facilities. Leverage -- as measured by adjusted gross debt/EBITDA -- has remained in the 1.1x-2.2x range since June 2014, and has been around 1.1x-1.2x for the last 18 months. Interest and cash flow coverage metrics have also improved materially, with EBIT/interest currently around 8.8x and cash flow from operations (CFO) (minus dividends)/debt around 56%. Moody's expects these metrics will further improve over the next 12-18 months, reflecting sustained improvements in earnings and the potential for further debt reduction. Specifically, Moody's expects adjusted gross debt/EBITDA will improve to around 0.8x- 1.0x in fiscal 2018 and 2019. The ratings continue to reflect BlueScope's strong market position in Australia, geographic diversification, as well as the steps it has taken to materially lower the cost of its spread- exposed businesses and strengthen its business profile by focusing on midstream and downstream products. The ratings are balanced by the volatility in the steel industry and the potential challenges it faces, including disruptions to global trade conditions and rising input costs. Nevertheless, BlueScope's improved cost position and good product diversity has enabled the company to exhibit above industry average performance. Moody's points out that the ratings also continue to reflect BlueScope's exposure to volatile foreign exchange rates and the cyclical nature of the end-market sectors that the company serves, such as residential and commercial construction. The stable outlook reflects Moody's expectation that margins and earnings will remain near current levels over the next 12-18 months, which combined with the company's financial policies should allow for credit metrics to remain in line with expectations for the rating. WHAT COULD CHANGE THE RATING Upward ratings pressure would require BlueScope to maintain its improved earnings and cost profile through the cycle, further improve margins and prudently grow its business in a manner that allows credit metrics to remain at conservative levels. Specifically, Moody's would consider upgrading the ratings if BlueScope sustains EBIT margins in excess of 12% through the cycle, while maintaining adjusted debt/EBITDA - adjusted for Moody's standard adjustments - below 2.0x, EBIT/interest above 6.0x, and consistent free cash flow generation. On the other hand, the ratings could experience downward pressure if BlueScope fails to sustain its recent earnings improvement, experiences material disruptions to its operations, steel spreads are sustained at meaningfully lower levels and/or it adapts a more aggressive financial policy, including pursuing large debt- financed acquisitions or share repurchases that lead to a sustained weakening in credit metrics. Specifically, through the cycle EBIT margins below 8%, adjusted debt/EBITDA above 2.75x, and/or EBIT/interest below 5.0x could lead to a downgrade of the ratings. The principal methodology used in these ratings was Steel Industry published in September 2017. BlueScope Steel Ltd. is an Australian-based manufacturer and distributor of a range of steel products for the building, construction, manufacturing and automotive industries. It manufactures and distributes down, mid and upstream products for both the domestic and export markets. BRAT HAUS: Second Creditors' Meeting Set for April 18 ----------------------------------------------------- A second meeting of creditors in the proceedings of Brat Haus Valley Pty. Ltd. has been set for April 18, 2018, at 10:00 a.m. at Level 11, 127 Creek 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 17, 2018, at 4:00 p.m. Christopher John Baskerville of Jirsch Sutherland was appointed as administrators of Brat Haus on March 5, 2018. FAT STAG: First Creditors' Meeting Set for April 20 --------------------------------------------------- A first meeting of the creditors in the proceedings of The Fat Stag Pty Ltd, trading as The Stag Hotel, will be held at the offices of Heard Phillips, Level 12, 50 Pirie Street, in Adelaide, South Australia, on April 20, 2018, at 11:00 a.m. Andrew Heard and Anthony Phillips of Heard Phillips were appointed as administrators of The Fat Stag on April 10, 2018. GOLDEN IT: Second Creditors' Meeting Set for April 18 ----------------------------------------------------- A second meeting of creditors in the proceedings of Golden IT Pty Ltd has been set for April 18, 2018, at 11:00 a.m. at the offices of Hall Chadwick Chartered Accountants, Level 14, 440 Collins Street, in Melbourne, Victoria. 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 17, 2018, at 5:00 p.m. Blair Pleash of Hall Chadwick was appointed as administrator of Golden IT on March 2, 2018. HELPSTREET MEDICAL: Second Creditors' Meeting Set for April 18 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Helpstreet Medical Pty Ltd has been set for April 18, 2018 at 11:00 a.m. at the offices of SV Partners Sydney, Level 7, 151 Castlereagh Street, in Sydney, NSW, on April 18, 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 17, 2018, at 4:00 p.m. Shumit Banerjee and Jason Lloyd Porter of SV Partners Sydney were appointed as administrators of Helpstreet Medical on March 5, 2018. WOLFE CIVIL: Second Creditors' Meeting Set for April 18 ------------------------------------------------------- A second meeting of creditors in the proceedings of Wolfe Civil Pty Ltd has been set for April 18, 2018, at 10:00 a.m. at the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram Street, in West Perth, West Australia. The purpose of the meeting are (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 17, 2018, at 4:00 p.m. Kimberley Stuart Wallman of HLB Mann were appointed as administrators of Wolfe Civil on March 6, 2018. * AUSTRALIA: SMEs Would Collapse Without Brokers, Brokerage Says ---------------------------------------------------------------- mybusiness reports that many small business enterprises (SMEs) would face financial ruin if finance brokers were removed from the mix, one brokerage has claimed in the face of intense speculation about the sector. According to mybusiness, Paul Boyd-Skinner, managing director of Gold Coast brokerage AusWise Finance, suggested that many businesses could struggle to access finance and "would collapse" if curbs are placed on the broking industry. "The business clients I deal with can be at any level from start up, established businesses to a business that looks like they are going under," the reports quotes Mr. Boyd-Skinner as saying. "Our aim is to provide SMEs with the peace of mind to focus on their day-to-day business activity without carrying the burden of finance-related stress." mybusiness relates that Mr. Boyd-Skinner cited the example of a manufacturing business that approached his firm, after a Deed of Company Arrangement (DOCA) was placed on it in a bid to recoup a AUD300,000 debt to the Tax Office and other monies owed to various creditors. All the while, the administrator was charging the business AUD20,000 per month in fees, the report says. "We were able to find a solution for them, firstly by using equity in the business director's home to obtain a short-term mortgage through a private lender and pay off the ATO and the administrator," Mr. Boyd-Skinner, as cited by mybusiness, said. "I also managed to get them an unsecured loan based on the business cash flow to enable them to purchase new supplies and equipment as well as set up a debtor finance facility." According to the report, Mr. Boyd-Skinner said these financial arrangements saved the business from collapse. "After six months, the business was flying again and I refinanced the director's home back through a good, non-conforming lender at a reasonable rate and paid back the private lender. This was all done through alternative finance solutions and no property had to be sold," he said. "Your bank may have its place in your business, but sometimes we need to think outside of the banking arena and segregate facilities to other non-bank specialist providers." mybusiness says the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which is currently underway has speculated about the effectiveness of finance brokers in achieving positive client outcomes, including their remuneration structure. Most brokers in Australia do not directly charge clients for their services, instead receiving fees and commissions from the lender chosen by their client, the report relays. "It's a deceptively simple set of questions to ask: who does a mortgage broker act for? You can put it in three ways, I think, and the issue has at least three elements to it," mybusiness quotes commissioner Kenneth Hayne as saying as part of the royal commission inquiries. "Who does the broker act for? That might be seen as an inquiry about fact or fact and law. Two, who does the customer think the broker is acting for? And third, who does the lender think the broker is acting for? And do you give separate answers at separate steps along the way? "So who does a broker act for, who does the customer think the broker acts for, who does the lender think the broker acts for, are there varying or varied answers at various steps? If there are, what are they?" ========= C H I N A ========= AGILE GROUP: Moody's Hikes CFR to Ba2; Outlook Stable ----------------------------------------------------- Moody's Investors Service has upgraded Agile Group Holdings Limited's corporate family rating to Ba2 from Ba3. At the same time, Moody's has upgraded the senior unsecured rating on the bonds issued by Agile to Ba3 from B1. The outlook on all ratings is stable. RATINGS RATIONALE "The upgrade reflects Moody's expectation that Agile will continue to moderately grow presales and revenue recognition in the next 1-2 years, while its credit metrics will stay at levels better than those of its Ba3 rated Chinese property peers," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer. Moody's expects Agile's revenue/adjusted debt will rise to around 80% in the next 12-18 months from 74.3% in 2017, and EBIT/interest to 5.0x-5.5x from 4.9x over the same period. These projected metrics position Agile at the Ba2 rating level, and incorporate Moody's expectation that Agile will maintain its disciplined approach to land acquisitions and financial management. Moody's expects Agile will moderately grow its presales by 15%- 20% to RMB100-110 billion in 2018, supported by (1) its established market position in its core Guangdong and Hainan markets, (2) its growing portfolio of saleable resources, and (3) prospective economic growth and increasing housing demand in the Greater Bay area in Guangdong, the company's home market. Agile's presales reached RMB89.7 billion in 2017, exceeding its original target of RMB60 billion and 52.4% higher than the RMB58.9 billion presales achieved in 2016. Its two core markets of Southern China -- mainly Guangdong -- and Hainan contributed 62% of presales in 2017. Agile has also expanded its geographic coverage while growing in scale. Projects outside Southern China and Hainan account for around 45% of the company's saleable resources in 2018, compared to 35% in 2017. This broader geographic coverage will reduce the company sales volatility in case of further regulatory tightening or slowing presales in its core markets. "The company's high profit margin and track record of prudent financial and liquidity management also support the upgrade," adds Tsang, also Moody's Lead Analyst for Agile. Agile's gross margin has improved thanks to strong property market conditions in its key operating cities over the past 2 years and low land costs. Its high profit margin provides the company with a buffer against potential price declines if China's property market softens in the next 12-18 months. Agile's gross margin surged to 40.1% in 2017 from 26.5% in 2016. Moody's expect the company's gross margin will remain at this high level, supported by the increase in average selling prices of its presales to RMB12,193 per sqm in 2017 from RMB10,130 per sqm in 2016 and RMB8,792 per sqm in 2015. Agile's Ba2 CFR reflects its strong track record of property development in Guangdong and Hainan Provinces, disciplined financial management, track record of equity injections from its largest shareholder at times of need, adequate liquidity, good access to the offshore debt and banking markets, and low land costs. At the same time, Agile's CFR is constrained by the company's material exposure to Guangdong and Hainan Provinces, the impact of potential regulatory tightening on property sales in its key operating cities, and execution risks associated with its fast expansion in property and new businesses. Agile's Ba3 senior unsecured rating is one notch lower than its CFR to reflect the risk of structural subordination. This subordination risk reflects the fact that the majority of Agile's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. The stable outlook reflects Moody's expectation that Agile will maintain a disciplined approach to land acquisitions and business expansion, moderate growth in scale, stable financial metrics and a strong liquidity position over the next 12-18 months. Upward rating pressure could develop if Agile grows its scale while maintaining (1) a strong liquidity position; and (2) sound credit metrics, with adjusted revenue/debt above 95%-100% and EBIT/interest coverage above 5.0x-5.5x on a sustained basis. Downward rating pressure could emerge if Agile's contracted sales fall and credit metrics weaken, with EBIT/interest coverage falling below 3.5x or adjusted revenue/debt falling below 70%- 75%. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Agile Group Holdings Limited is one of China's major property developers, operating in the mid- to high-end segments. As of December 31, 2017, the company had a land bank with a total gross floor area of 34.1 million square meters. ================ H O N G K O N G ================ NOBLE GROUP: Gets More Support for Restructuring Plan ----------------------------------------------------- Reuters reports that Noble Group Ltd said on April 9 that it is getting growing support for a $3.4 billion restructuring plan after more than 70 percent of creditors holding the majority of its senior debt accepted the initiative. Reuters relates that the proposed restructuring agreement requires approval by a majority of existing senior creditors representing 75 percent in value of its debt. According to Reuters, Noble added that advisers to the Ad Hoc Group and the company are in talks with about 10 percent of additional creditors who support the proposed financial restructuring, subject to accepting the restructuring and completing internal approval processes. "The company remains confident that the number of creditors acceding into the RSA (restructuring support agreement) will continue to rise," Noble, as cited by Reuters, said. Noble warned last month that it would begin insolvency proceedings if the debt restructuring was not approved, Reuters relays. Last week, Singapore Exchange's regulatory arm had asked Noble's senior creditors to assess the beleaguered commodity trader's restructuring plans to "ensure parity in the treatment of all shareholders," adds Reuters. About Noble Group Hong Kong-based Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- engages in supply of agricultural, industrial and energy products. The Company supplies agricultural and energy products, metals, minerals and ores. Agriculture products include grains, oilseeds and sugar to palm oil, coffee, and cocoa. Energy business includes coal, gas and liquid energy products. In metals, minerals and ores (MMO), it supplies iron ore, aluminum, special ores and alloys. The Company operates nearly in 140 locations. It supplies growth demand markets in Asia and Middle East. Alcoa World Alumina and Chemicals is the subsidiary of this company. As reported in the Troubled Company Reporter-Asia Pacific on March 23, 2018, S&P Global Ratings lowered its long-term issuer credit rating on Noble Group to 'D' from 'CC'. S&P said, "We lowered the ratings because Noble has missed the principal and coupon payment for its 2018 notes due March 20, 2018. Noble also missed the coupon payment on its 2022 notes due March 9, 2018. In addition, the company said it would not make the payments despite being given 30-day grace periods to meet both obligations. The failure to make these payments will trigger cross-defaults on the company's other obligations. We do not expect Noble to meet any outstanding obligations as the company preserves its assets during the restructuring process." Noble is undergoing a debt restructuring, which management expects to be completed by the end of July. S&P will conduct another review the company's credit profile after the restructuring is complete. ========= I N D I A ========= AJIT KUMAR: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Ajit Kumar Swain (AKS) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are given below: -- INR40 mil. Fund-based working capital limits assigned with IND BB-/Stable rating; and -- INR120 mil. Non-fund-based working capital limits assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect AKS' small scale of operations, low EBITDA margin and modest credit metrics owing to low order book. Revenue surged to INR273.82 million in FY17 (FY16: INR41.30 million) on account of an increase in work orders. In FY17, interest coverage (operating EBITDA/gross interest expense) improved to 1.9x (FY16: 1.1x) on the back of an improvement in EBITDA to INR15.6 million (INR8.2 million). The company had a net cash position in FY17 (FY16: net leverage (adjusted net debt/operating EBITDAR) 3.4x). However, operating margin contracted to 5.7% in FY17 (FY16: 19.9%) due to an increase in raw material cost. As of March 1, 2018, the company had an order book of INR719.36 million, to be executed by FY19. The ratings are also constrained by the firm's tight liquidity position as reflected by around 99.6% average use of the working capital limits during the 12 months ended March 2018. However, the ratings are supported by AKS' proprietor's about one decade of experience in the construction business. RATING SENSITIVITIES Positive: A substantial improvement in the revenue and operating profitability, while maintaining the credit metrics will lead to a positive rating action. Negative: A decline in the operating profitability leading to deterioration in the overall credit metrics and liquidity profile will lead to a negative rating action. COMPANY PROFILE AKS was incorporated in 2009 at Cuttack, Odisha as a proprietorship firm. The firm began operations in FY15. It is a registered special class contractor with Public Works Department, Odisha and is involved in road construction, earthworks and rehabilitation of irrigation canals, among others. AMANITA STEELS: Ind-Ra Assigns BB+ Rating to INR50MM Limits ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Amanita Steels Limited's (ASL) additional bank facilities as follows: -- INR50 mil. Fund-based limits assigned with IND BB+/Stable rating; and -- INR10 mil. Non-fund-based limits assigned with IND A4+ rating. RATING SENSITIVITIES Negative: A further decline in credit metrics may lead to a negative rating action. Positive: An improvement in operating margins, along with an improvement in the credit metrics, could lead to a positive rating action. COMPANY PROFILE ASL was incorporated in 1995 as a financing company in the name of Amanita Trades & Investment Limited. The company remained dormant for years before entering into a memorandum of understanding with the Jharkhand government for setting up an integrated mini steel plant near Ramah, Jharkhand. Mr. Sub hash Chand Tulsyanand and Mr. Deepak Rungta are the promoters. In 2006, ASL started manufacturing of sponge iron at Hazaribagh, Jharkhand. AMRIT LAL: Ind-Ra Migrates 'BB' Rating to Non-Cooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Amrit Lal Khatri's (ALK) 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 as follows: -- INR30 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) /IND A4+(ISSUER NOT COOPERATING) ratings; and -- INR60 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 2, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1980, ALK is engaged in civil construction works, mainly for entities such as National Highways Authority of India ('IND AAA'/Stable), Public Works Department Jaipur, Central Public Works Department, and various central and state government bodies. The company is based in Barmer, Rajasthan. ARENA LIFESTYLE: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Arena Lifestyle Pvt Ltd.'s (ALPL) 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 as follows: --INR290 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) ratings. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 16, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Founded in 1996, ALPL specializes in diamond and gold jewelry and owns a showroom in Mumbai at Breach Candy. The company belongs to the Sava family, which is known by its flagship brand Bender, and owns a fashion and lifestyle retail outlet at Breach Candy in Mumbai. The company specializes in antiques, Jada, viand, diamonds and gold jewelry. The company has a lifetime buyback policy attached with all its product making, purchases and investments. AROMA RESTAURANTS: CRISIL Moves B Rating to Not Cooperating Cat. ---------------------------------------------------------------- CRISIL has been consistently following up with Aroma Restaurants And Resorts Private Limited (Aroma) for obtaining information through letters and emails dated December 14, 2017 and January 17, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 4 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Aroma Restaurants And Resorts Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Aroma Restaurants And Resorts Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Aroma Restaurants And Resorts Private Limited to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 1999 and promoted by Mr. Sachin Mehndiratta and his elder brother, Aroma operates 16 restaurants in Chennai. BASAK BOTTLING: CRISIL Assigns B Rating to INR7.3MM LT Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Basak Bottling Plant Pvt Ltd (BBPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.2 CRISIL A4 Proposed Long Term Bank Loan Facility 7.3 CRISIL B/Stable The ratings reflect BBPPL's exposure to project-related risk and susceptibility to volatile raw material prices and to regulatory changes. These weaknesses are partially offset by the extensive experience of its promoters. Key Rating Drivers & Detailed Description Weakness * Exposure to project-related risk: With operations set to commence in fiscal 2019, the implementation and demand risks are sizeable. Hence the successful and timely ramp-up of the project will remain a key rating sensitivity factor. * Exposure to volatility in raw material prices: The prices of raw spirit, used for manufacturing country liquor, are highly volatile. On account of intense competition in the industry and the expected modest scale of operation initially, BBPPL is likely to have low bargaining power with its customers and will be unable to pass on price increases. Strengths * Extensive experience of the promoters: Benefits from the promoters' two decades of experience in diversified industries has helped the promoters to develop business relationship in the region. Moreover, the steady demand of country liquor will provide fillip to its business risk profile over the medium term. Outlook: Stable CRISIL believes BBPPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if significant ramp-up in scale of operation and profitability strengthens financial risk profile. The outlook may be revised to 'Negative' if increase in scale of operation or working capital requirement, or any large debt-funded capital expenditure weakens capital structure. Incorporated in 2015, BBPPL, promoted by Mr Chandan Basak and Mr Ashis Basak, is setting up a plant to manufacture and sell country liquor. The unit being set-up in Kalna, West Bengal, has a capacity of 230,400 bottles per day. Commercial operation is expected to commence from April-May 2018. CAREON HEALTHCARE: CRISIL Moves B+ Rating to Not Cooperating ------------------------------------------------------------ CRISIL has been consistently following up with Careon Healthcare Solutions Private Limited (CHSPL) for obtaining information through letters and emails dated July 17, 2017, January 05, 2018, and January 11, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.2 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Letter of Credit 1.0 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Cash 3.8 CRISIL B+/Stable (Issuer Not Credit Limit Cooperating; Rating Migrated) Proposed Letter of Credit 1.0 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Long Term Bank Loan Facility 0.8 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Term Loan 0.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 5.7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Careon Healthcare Solutions Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Careon Healthcare Solutions Private Limited is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Careon Healthcare Solutions Private Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 1991 and promoted by Mr. James George, CHSPL manufactures medical disposables such as surgical drapes, and also trades in medical disposable equipment. Group Company, Careon Medical Disposable Pvt Ltd, was merged with CHSPL in April 2015. D.V. EXPORT: CRISIL Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- CRISIL has been consistently following up with D.V. Export (DVE) for obtaining information through letters and emails dated December 14, 2017 and January 17, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Packing 19 CRISIL B+/Stable (Issuer Not Credit Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of D.V. Export. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on D.V. Export is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of D.V. Export to 'CRISIL B+/Stable Issuer not cooperating'. Established in 2007, DVE is engaged in trading of cotton bales, seeds and hull. The firm is based in based in Sendhwa, district Barwani (Madhya Pradesh) with offices in Indore, Aurangabad and Adilabad. It is owned and managed by Mr Sanchit Rajpal and belongs to Manjeet group. DEX AGRO: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Dex Agro Sweeteners Private Limited (DASPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating action are as follows: -- INR10.10 mil. Fund-based working capital limits assigned with IND BB-/Stable/IND A4+ rating; and -- INR24.00 mil. Term loans due on June 2021 assigned with IND BB-/Stable rating. KEY RATING DRIVERS The ratings reflect DASPL's small scale of operations and modest credit metrics owing to the nascent stage of operations. In FY17, revenue improved to INR328.44 million from INR243.84 million in FY16 on account of higher quantity sold to existing clients, as well as the addition of new clients. Interest coverage (operating EBITDA/net interest expense) improved to 4.18x in FY17 from 2.70x in FY16, with financial leverage (total adjusted debt/operating EBITDA) enhancing to 2.16x from 4.58x during the period. The improvement in the credit metrics was driven by a rise in profitability and revenue growth. The ratings factor in DASPL's modest-but-rising EBITDA margin. The margin rose to 8.26% in FY17 from 5.48% in FY16 on account of stabilization of operations and better price realization. The ratings, however, are supported by the promoters' significant experience of over 15 years in the agricultural commodities industry. The ratings are also supported by DASPL's comfortable liquidity, indicated by an average working capital utilization of 69% for the 12 months ended February 2017. The working capital cycle of company stood at negative 29 days in FY17 (FY16: 50 days). The improvement in the cycle was driven by the stabilization of operations. RATING SENSITIVITIES Negative: Any elongation in the working capital cycle leading to a stretch in the liquidity profile and/or any deterioration in the credit metrics on a sustained basis will be negative for the ratings. Positive: Any significant rise in revenue while maintaining the credit metrics at the current levels will be positive for the ratings. COMPANY PROFILE Incorporated in November 2013, DASPL has an 11,100 metric tons per annum plant in Uttarakhand for manufacturing sweeteners, vegetable extracts and cattle feed. EMTELLE INDIA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Emtelle India Limited's (EIL) Long-Term Issuer Rating to 'IND D' from 'IND B' while simultaneously migrating the rating to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. 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: -- INR26.4 mil. Term loan (long-term) due on November 2018 downgraded and migrated to Non-Cooperating Category with IND D(ISSUER NOT COOPERATING) rating; -- INR375 mil. Cash credit limits (long-term) downgraded and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; and -- INR220 mil. Non-fund-based working capital limits (short- term) downgraded and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The rating action reflects delays in debt servicing by EIL, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in an upgrade. COMPANY PROFILE Incorporated in 1989, Ahmedabad-based EIL is engaged in the manufacturing and turnkey supply of micro irrigation system and a range of polyethylene pipes. In 2010, Netherland-based Emtelle holdings BV acquired 70% equity in EIL. ESHYAN INFRATECH: Ind-Ra Migrates 'B+' Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Eshyan Infratech's (EI) 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 as follows: -- INR10 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND B+(ISSUER NOT COOPERATING) /IND A4(ISSUER NOT COOPERATING) rating; -- INR20 mil. Non-fund-based working capital limits migrated to Non-Cooperating Category with IND A4(ISSUER NOT COOPERATING) rating; -- INR15 mil. Proposed fund-based working capital limits migrated to Non-Cooperating Category with Provisional IND B+ (ISSUER NOT COOPERATING)/Provisional IND A4 (ISSUER NOT COOPERATING) rating; and -- INR35 mil. Proposed Non-fund-based working capital limits migrated to Non-Cooperating Category with Provisional IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 27, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE EI was incorporated in 2013 as a partnership firm. It is engaged in the civil construction of underground level water tank, overhead water tank, pipelines and roads. The firm has completed water pipeline construction in Karnataka and Andhra Pradesh, and an underground level water tank in Andhra Pradesh. GR8 CONSTRUCTIONS: CRISIL Raises Rating on INR5MM LT Loan to B+ --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank loan facilities of GR8 Constructions Private Limited (GR8) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects the advance stage of its on-going project marked by healthy booking vis-a-vis construction. With increase in bookings for projects, customer advances will be more than adequate to meet construction cost and interest obligations over the medium term, leading to minimal dependence on bank debt to fund projects. The rating reflects its exposure to risks related to completion and saleability of ongoing projects, and susceptibility to risks inherent in the real estate industry. These rating weaknesses are partially offset by the extensive experience of the promoter in real estate development and moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Exposure to cyclicality in the Indian real estate industry: GR8's business risk profile is susceptible to slowdown in the Indian real estate market and geographical concentration in revenue profile. The real estate sector in India is cyclical and is marked by volatile prices, opaque transactions, and a highly fragmented market structure. The execution of the real estate projects in India is affected by multiple property laws and non- standardised government regulations across the states. * Exposure to risks related to its ongoing real estate projects GR8 is currently executing one residential projects in Vizag which are exposed to risks related to funding, demand and implementation. Strengths * Promoter's extensive experience in real estate development: GCPL benefits from the promoters extensive experience in the residential real estate business. The company is promoted by Mr. Pathapati Venkata Srinivasa Raju. The day to day operations are managed by him. It is a family owned business. Mr. PVS Raju, has an experience of around two decades in civil construction activities mostly buildings and roads. * Moderate financial risk profile: GR8's financial risk profile is supported by the management's moderate funding policy for its ongoing projects. This is expected to result in a DSCR of over 3.3 times over the next 2 years. Outlook: Stable CRISIL believes GCPL will continue to benefit from the extensive experience of its promoter in the real estate market of Vishakhapatnam, Andhra Pradesh. The outlook may be revised to 'Positive' in case of a substantial increase in cash flow, most likely due to earlier-than-expected completion of, or significantly higher realisations for, upcoming projects. The outlook may be revised to 'Negative' in case of any delay in project completion or in receipt of payments from customers, inability to sell units in the upcoming projects, or any large, debt-funded projects undertaken. GCPL was established in 2005, promoted by Mr Pathapati Venkata Srinivasa Raju, who also manages operations. The company undertakes residential real estate construction at Bhimavaram in Visakhapatnam. It has one ongoing project. INDIAN PULP: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Indian Pulp & Paper Private Limited's (IPPPL) Long-Term Issuer Rating at 'IND D' while simultaneously migrating it to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. The rating will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are given below: -- INR455.5 mil. Long-term loans due on March 2022 affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR159.3 mil. Fund-based limits (Long-term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR85.4 mil. Non-fund-based limits (Short-term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The affirmation reflects IPPPL's continuing delays in debt servicing during March 2018. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months would be positive for the ratings. COMPANY PROFILE Kolkata-based IPPPL was incorporated in 2004 as Balaji Kagaz Private Limited. The company acquired Indian Paper Pulp Company Ltd in 2006 from the government of West Bengal. Subsequently, the name was changed to its present name. The company manufactures kraft paper and pulp. JS GROVER: CRISIL Assigns B+ Rating to INR8MM Cash Loan ------------------------------------------------------- CRISIL has assigned 'CRISIL B+/Stable' rating to the long-term bank facilities of J. S. Grover Autos Private Limited (JSG). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 CRISIL B+/Stable The ratings reflect the extensive experience of promoters in the automotive dealership business. This strength is partially offset by the modest scale of operations and exposure to intense competition in the automotive dealership market, and weak financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and Exposure to intense competition: With estimated revenues of about INR45 crore in fiscal 2018, the scale of operations has remained modest due to intense competition in the automotive dealership business. * Weak financial risk profile: Financial risk profile, marked by modest networth of INR1.85 crore and total outside liabilities to tangible networth (TOL/ ANW) of 13 times in fiscal 2018, is expected to remain weak over the medium term. Strength * Extensive experience of promoters: The promoters have almost a two decade's experience in the business. Further, association with Mahindra & Mahindra since 2014, will continue to support business risk profile over the medium term. Outlook: Stable CRISIL believes JSG will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if growth in scale and profitability leads to large cash accruals and improves capital structure. The outlook may be revised to 'Negative' if decline in revenue or profitability, stretched working capital cycle, or debt-funded capital expenditure weakens financial risk profile. Incorporated in 2010, formerly known as Krishna Auto world Pvt Ltd, JSG and promoted by Grover family, is an authorised dealer of Mahindra & Mahindra. JCR CINEMA: CRISIL Reaffirms B Rating on INR20MM Term Loan ---------------------------------------------------------- CRISIL has reaffirmed its rating on the long-term bank facility of JCR Cinema Private Limited (JCPL) at 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 20 CRISIL B/Stable (Reaffirmed) The rating continues to reflect its moderate sales risk and tight liquidity. These weaknesses are partially offset by low funding risk, strategic location, and association with PVR Cinemas (PVR). Key Rating Drivers & Detailed Description Weaknesses: * Project-related risk: Timely completion of project with no cost overrun remains a key rating sensitivity factor. Moreover, ability to ramp up operations and garner healthy occupancy will be critical for healthy accrual over the medium term. * Constrained liquidity: Modest cash accrual and upcoming debt obligation are expected to constrain liquidity. However, this is likely to be mitigated by promoter funds. Strengths * Strategic location and association with PVR: Project is strategically located closed to posh townships and around 6 kilometres from Jamnagar, Gujarat. Also, association with PVR is expected to support sales. * Low funding risk: Term loan of INR10.45 crore has been disbursed till February 2018 and promoters have infused INR13.50 crore as unsecured loans and equity. As term loan of INR9.55 crore is yet to be disbursed, funding risk remains low. Outlook: Stable CRISIL believes JCPL will continue to benefit over the medium term from the extensive experience of its promoters and association with PVR. The outlook may be revised to 'Positive' in case of timely implementation of project and healthy ramp up in operations. The outlook may be revised to 'Negative' in case of delay in project or any cost overrun which in turn would affect the liquidity profile of the company. Established in August 2012 by Mr. Ilesh Bhadra and Mrs. Urvashi Bhadra, JCPL is establishing an entertainment hub, Firestone, in Jamnagar, which will include a three-screen multiplex, drive-in theatre, multiple restaurants, coffee shop, banquet hall, shopping mall, an indoor and outdoor gaming zone, and a 3-star hotel. The entertainment hub is likely to begin from November 2018. JEWEL CAST: CRISIL Withdraws B Rating on INR5MM Gold Loan --------------------------------------------------------- CRISIL has been consistently following up with Jewel Cast (JC) for obtaining information through letters and emails dated January 24, 2017, and February 14, 2017, among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Gold Loan 5 CRISIL B/Stable/Issuer Not Cooperating (Issuer Not Cooperating; Rating Withdrawal) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of JC. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for JC is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower.' Based on the last available information, CRISIL has continues the rating at 'CRISIL B/Stable'. CRISIL has withdrawn its rating on the bank facilities of JC at the company's request and after receiving a no-dues certificate from its banker. The rating action is in line with CRISIL's policy on withdrawal of ratings on bank loan facilities. JC was setup in 1999 as a proprietorship concern of Mr. Manish Jain in Mumbai (Maharashtra). The concern is engaged in manufacturing of gold jewellery. The concern does not have its own manufacturing unit and gets jewellery manufactured on job work basis. MAHARSHEE GEOMEMBRANE: CRISIL Moves D Rating to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Maharshee Geomembrane India Private Limited (MGPL) for obtaining information through letters and emails dated February 28, 2018 and March 5, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.45 CRISIL D (Issuer Not Cooperating; Rating Migrated) Cash Credit 5.00 CRISIL D (Issuer Not Cooperating; Rating Migrated) Inland/Import 3.50 CRISIL D (Issuer Not Letter of Credit Cooperating; Rating Migrated) Proposed Long Term 6.03 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Maharshee Geomembrane India Private Limited, which restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes information available on Maharshee Geomembrane India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL B' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Maharshee Geomembrane India Private Limited to CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2005 in Vadodara and promoted by Mr. Rajnikant Swain, MGPL manufactures HDPE, LDPE, and polypropylene films known as geomembrane, geotextiles, and geo-composite. MANI EXPORT: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Mani Export Private Limited's (MEPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR350 mil. Fund-based limits affirmed with IND BB-/Stable rating; and -- INR4 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects continued weak credit metrics and modest scale of operations owing to MEPL's presence in a highly competitive and volatile diamond industry. In 9MFY18, interest coverage was 3.16x (FY17: 0.71x; FY16: 1.29x) and net leverage was 7.63x (FY17: 21.46x; FY16: 10.72x). The improvement in the credit metrics was driven by a rise in EBITDA margin (9MFY18: 4.84%; FY17: 1.47%; FY16: 3.73%) on account of low cost of raw materials. Ind-Ra expects the credit metrics to improve in the near term in view of rising absolute EBITDA. Revenue was INR926.42 million in 9MFY18 (FY17: INR1,457.40 million; FY16: INR1,266.76 million). Ind-Ra expects the revenue to have declined in FY18 in view of sluggish market demand. The ratings reflect a tight liquidity, indicated by an almost full utilization of the fund-based facilities over the 12 months ended February 2018. The ratings factor in an improvement in the net working capital cycle, albeit still elongated, to 175 days in FY17 (FY16: 223 days) due to an improvement in inventory and debtor days. The ratings, however, continue to derive strength from the promoters' extensive experience of more than four decades in the diamond industry and MEPL's diversified client base. RATING SENSITIVITIES Negative: Any decline in operating EBITDA margin and/or any deterioration in the net working capital cycle leading to any deterioration in the credit metrics would be negative for the ratings. Positive: Any substantial revenue growth, while operating EBITDA margin staying at the same level, leading to any improvement in the credit metrics would be positive for the ratings. COMPANY PROFILE MEPL was established in 1987 as a partnership firm by Mr. Nagjibhai B Sojitra and other family members, and later reconstituted as a private limited company in 2014. The company is engaged in the cutting and processing of rough diamonds and the export of polished diamonds of various sizes and shapes. Its registered office is in Mumbai and processing unit is in Surat, Gujarat. It has two windmills in Kutch, with a capacity of 0.6MW each. MEC ENGINEERS: CRISIL Lowers Rating on INR3MM Cash Loan to B+ ------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facility of MEC Engineers (India) [MEC] to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable', and has reassigned a rating of 'CRISIL A4' to the short-term facility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reassigned) Cash Credit 3 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects weakening of MEC's business risk profile, on account of decline in revenue and increased working capital requirement. Revenue dropped to INR7 crore in fiscal 2017 from INR9 crore in fiscal 2016 due to weaker demand. Gross current assets (GCAs) increased to 609 days as on March 31, 2017, from 509 days a year earlier. The fall in the operating performance has resulted in lower net cash accruals. The ratings also reflect a modest scale of operations and large working capital requirement. These weaknesses are partially offset by the experience of the managing partner in the civil and industrial construction industry. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: The scale of operations has been modest, with revenue of INR7 crore in fiscal 2017. As the business is tender based, any decline in orders from regular customers may further weaken the scale of operations. * Large working capital requirement: MEC has large working capital requirement as reflected by Gross current asset (GCA) days of 609 as on March 31, 2017, due to substantial inventory of 624 days, as on March 31, 2017. Strength: * Experience of the managing partner: The founder and managing partner, Mr B Renjith, is a mechanical engineer, who had earlier worked as a chief engineer in Shipping Corporation of India. Currently, the firm is managed by Mr Renjith and Mr Deepu Ranjit, who has a master in construction projects degree from the UK. The firm executes projects only in Kerala. Outlook: Stable CRISIL believes MEC will continue to benefit from the extensive industry experience of the managing partner. The outlook may be revised to 'Positive' in case of a substantial increase in revenue and profitability. The outlook may be revised to 'Negative' in case of a steep decline in profitability, large, debt-funded capital expenditure, or significant withdrawal by the partners, leading to deterioration in the financial risk profile. MEC, established as a partnership firm in 1983 by Mr B Renjith, undertakes civil and industrial construction. The headquarters are in Kochi, and workshop facilities in Kochi and Chennai. MEERA GLASS: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Meera Glass Industries' (MGI) 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: -- INR38 mil. Fund-based working capital limit migrated to Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; and -- INR24.4 mil. Non-fund-based working capital limit migrated to Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 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 MGI was incorporated in 1986 by Mr. Narendra Prakash Mittal. The company manufactures glass, glassware, bangles, chimneys and other items made of glass. Its registered office is situated in Firozabad, Uttar Pradesh. MONNET ISPAT: Lenders Approve JSW Steel-AION's Bid -------------------------------------------------- BloombergQuint reports that Monnet Ispat & Energy Ltd.'s committee of creditors on April 10 approved a resolution plan submitted by a joint venture between AION Investments Pvt Ltd and JSW Steel Ltd. According to BloombergQuint, the plan was approved by lenders with a 98.97 percent majority, Monnet Ispat said in an exchange filing. The bid will now be placed before the National Company Law Tribunal for final approval, before being implemented. On Feb. 27, BloombergQuint had reported that the JSW-AION consortium had made a Rs 3,700 crore offer for Monnet Ispat. Of this, Rs 2,650 crore were to be used to repay lenders against admitted claims worth Rs 10,000 crore. That would mean that the financial creditors would take a 76 percent haircut on their exposure. JSW-Aion's resolution plan also proposes transfer of Monnet Ispat's non-core assets into a new company to be sold later, BloombergQuint had reported. About Monnet Ispat Monnet Ispat and Energy Limited is a holding company. The Company is engaged in the business of conducting coal mining operations and manufacturing coal-based sponge iron and various other steel/iron-based products. The Company operates through three segments: Iron & Steel, Power and Others. Its principal products and services include steel and power. It has an integrated steel plant at Raigarh that has a production capacity of 1.5 million tons per annum (MTPA) to produce hot rolled (HR) plates, rebars and structure profiles to cater to the infrastructure and construction industry. The Company has coal blocks, such as Gare Palma IV/5, Utkal B2, Urtan North, Raigmar dipside block and Mandakini. It is also engaged in producing ferro-alloys, which includes vital alloys, such as Ferro Manganese (Fe-Mn) and Silico-Manganese (Si-Mn). These are supplied in diverse shapes and forms from billets and ingots to powders, fillers and allied reinforcements. Monnet Ispat was one the 12 companies identified by the Reserve Bank of India for action under the Insolvency and Bankruptcy Code (IBC). MOTHER INDUSTRIES: CRISIL Lowers Rating on INR5MM Term Loan to D ---------------------------------------------------------------- CRISIL Ratings has been consistently following up for information with Mother Industries (MI) for obtaining information through letters and emails dated December 14, 2017 and January 18, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating; Downgraded from 'CRISIL B/Stable') Term Loan 5 CRISIL D (Issuer Not Cooperating; Downgraded from 'CRISIL B/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MI. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for MI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. CRISIL has downgraded its rating on the bank facilities of MI to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable'. The downgrade reflects delays by the company in servicing debt. CRISIL had discussions with the bank, which has confirmed the delay in repayment. MI was set up in 2006 as a proprietorship concern by Mr. Raju Bharani. The firm, based in Vellore (Tamil Nadu), manufactures semi-finished and finished leather, and caters to the footwear industry. MZ FOOD: CRISIL Moves D Rating to Rating to Not Cooperating Cat. ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with MZ Food Products Private Limited (MZF) for obtaining information through letters and emails dated February 14, 2018 and February 19, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.2 CRISIL D (Issuer Not Cooperating; Rating Migrated) Packing Credit 0.8 CRISIL D (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 2.6 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 5.9 CRISIL D (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MZ Food Products Private Limited, which restricts CRISIL's ability to take a forward- looking view on the entity's credit quality. CRISIL believes information available on MZ Food Products Private Limitedis consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of MZ Food Products Private Limited to CRISIL D/CRISIL D Issuer not cooperating'. MZF, incorporated in 2011, is promoted by Anand, Gujarat-based Mr Nirav Patel and his family members. The company processes frozen vegetables such as carrots, baby corn, broccoli florets, diced onions, and potatoes, and frozen fruits such as sliced bananas, mangoes, and pomegranates. NAGAPATTINAM MUNICIPALITY: Ind-Ra Withdraws 'BB' LT Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Nagapattinam Municipality's Long-Term Issuer Rating of 'IND BB'. The Outlook was Stable. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the issuer rating was assigned under AMRUT (Atal Mission for Rejuvenation and Urban Transformation) programme and no specific debt is issued against the rating. COMPANY PROFILE Nagapattinam Municipality was constituted on October 24, 1866 and was upgraded to Selection Grade Municipality effective May 22, 1998. Beginning October 19, 1991, the coverage area of the municipality spreads over Nagapattinam and Nagore towns. Nagapattinam is the administrative headquarters of Nagapattinam district. According to Census of India, the population of the town increased to 1.62 million in 2011 from 1.49 million in 2001. NIRVANA FASHION: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Nirvana Fashion Clothing's (Nirvana) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are given below: -- INR90 mil. Fund-based working capital limits affirmed with IND BB-/Stable rating; and -- INR30 mil. Non-fund-based working capital limits affirmed IND A4+ rating; KEY RATING DRIVERS The affirmation reflects Nirvana's continued small scale of operations and modest credit metrics. Revenue grew to INR405 million (FY16: INR380 million) owing to moderate order book in FY17. Net financial leverage (adjusted net debt/operating EBITDA) improved to 5.4x in FY17 (FY16: 6.8x) due to an improvement in the operating EBITDA margin to 5.7% (5%). The improvement in the margin was because of cost control measures adopted by the management to minimize its fixed cost. Interest coverage (operating EBITDA/gross interest expense) was stable at 1.6x in FY17 (FY16: 1.6x). However, the ratings remain supported by the firm's comfortable liquidity position as reflected by 93.75% average utilization of the working capital limits during the 12 months ended February 2018. The ratings also continue to be supported by Nirvana's founders' around five decades of experience in the garments industry. RATING SENSITIVITIES Negative: Any deterioration in the credit profile will lead to a negative rating action. Positive: A substantial increase in the revenue along with an improvement in the overall credit metrics will be positive for the ratings. COMPANY PROFILE Nirvana was established as a partnership firm by Biyani family in 1996. The firm manufactures readymade garments for men, women and kids on a contract basis and supplies them to reputed retail chains such as Future Group, Pantaloons, among others. The company also sells menswear under its own brand, Going 3. Bajrang Biyani is the founder and key partner. The firm's office is located in Mumbai. PROODLE HOSPITALITY: CRISIL Reaffirms B+ Rating on INR5MM Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term facilities of Proodle Hospitality Services Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's average financial risk profile and highly competitive catering business. These weaknesses are partially offset by the extensive experience of its promoters. Key Rating Drivers & Detailed Description Weaknesses: * Average financial risk profile: PHS has reported average financial risk profile due to high gearing of around (5.03) times, negative gearing is due to heavy losses PHS had incurred in past years. * Highly competitive catering business: PHS faces stiff competition from un-organised players and catering business is very sensitive in nature due to food preference of customers. Strength: * Extensive experience of the promoters: Mr Srinath Raghavan is a food specialist, with substantial experience in the food retail industry over a decade benefitting the company's business profile. Outlook: Stable CRISIL believes PHS will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if increase in revenue and improvement in profitability and capital structure strengthens financial risk profile. The outlook may be revised to 'Negative' if decline in revenue and profitability, or stretch in working capital cycle or any large debt-funded capital expenditure, weakens financial risk profile, especially liquidity. Incorporated in 2010, Chennai-based PHS is promoted by Mr Kavi Prasad D and Mr Srinath Raghavan. The company is involved in operating canteens and food courts across commercial establishments. PTS HITECH: CRISIL Migrates B Rating to Not Cooperating Cat. ------------------------------------------------------------ CRISIL has been consistently following up with PTS HITECH PROJECTS India Private Limited (PTS) for obtaining information through letters and emails dated January 29, 2018, February 15, 2018 and February 21, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 5 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PTS HITECH PROJECTS India Private Limited, which restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes information available on PTS HITECH PROJECTS India Private Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of PTS HITECH PROJECTS India Private Limited to CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. PTS, set up in 2009, is based in Puthiyara (Kerala). It executes civil contracts for Kerala Public Works Department. The day-to- day operations of the company are managed by Mr. PT Srinivasan, the proprietor. SANTHA CASHEW: CRISIL Assigns B+ Rating on INR5.5MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating on the bank facilities of Santha Cashew (SACAKO). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5.5 CRISIL B+/Stable Export Packing Credit 2.0 CRISIL B+/Stable The rating reflects SACAKO's moderate scale of operations and exposure to intense competition in the cashew industry and the below-average financial risk profile, marked by modest net worth, weak capital structure and debt-protection metrics. These weaknesses are partially offset by the extensive industry experience of the promoter. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations and exposure to intense competition in the cashew industry: Intense competition, low technological intensity involved in processing cashew nuts, and limited differentiation in the end-product, have kept the scale of operations modest, as reflected in estimated revenue of INR33.2 crore in fiscal 2017. These factors, coupled with volatility in raw material prices, have kept the operating margin moderate at 3.3% as on March 31, 2017. * Working capital intensity in operations: Operations continue to be working capital intensive, as reflected in gross current assets of 104 days as on March 31, 2017, mainly led by high inventory of 67 days as on March 31,2017. CRISIL believes that the working capital intensive operations will continue to constrain the business risk profile of the firm. Strengths * Promoter's extensive experience in the cashew industry: The 20 years' experience of the promoters in the cashew industry, and established relationships with customers, ensuring a regular flow of repeat orders, and the strong and geographically diversified network of raw cashew nut suppliers, will continue to support the business risk profile. Outlook: Stable CRISIL believes that SACAKO will continue to benefit from extensive industry experience of the promoter. The outlook may be revised to 'Positive', if SACAKO's financial risk profile improves backed by sustainable improvement in the firm's cash accruals or capital infusion by the proprietor. Conversely, the outlook may be revised to 'Negative', if the firm's financial risk profile and liquidity deteriorate further, due to lower than expected cash accruals, large debt-funded capex or stretched working capital cycle. Set up in 1996, SACAKO is a partnership firm engaged in the processing of raw cashew nuts and sale of cashew kernels. SACAKO currently operates its facility in Kollam (Kerala) with an installed capacity of processing around 200-300 bags per day. The operations of the firm are managed by its promoter Mr. Biju. Profit after tax (PAT) and net sales were estimated at INR0.2 crore and INR33.2 crore, respectively, for fiscal 2017, as against INR0.1 crore and INR17.6 crore, respectively, in the previous fiscal. SB EQUIPMENTS: Ind-Ra Hikes Long Term Issuer Rating to 'BB' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded SB Equipments LLP's (SBEL, earlier known as S. B. Equipments) Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are as follows: -- INR110 mil. Fund-based limitsLong-term rating upgraded and Short-term rating affirmed with IND BB/Stable/IND A4+ rating; and --INR40 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The upgrade reflects a substantial improvement in SBEL's revenue in FY17 on account of an increase in the receipt of government tenders, which has continued in FY18. Revenue is likely to have grown 50%-60% yoy in FY18 (FY17: INR355.09 million; FY16: INR157.97 million) based on the 9MFY18 top line of INR345.83 million and another INR250 million-300 million during 4QFY18 as can be seen by the number of executed orders. However, the scale of operations remains small and metrics modest because of intense competition in the government contracting business. Interest coverage (operating EBITDA/gross interest expense) improved marginally to 1.52x in FY17 (FY16: 1.50x) on account of a proportionate increase in EBITDA and interest expense. However, net leverage (Ind-Ra adjusted net debt/operating EBITDAR) fell to 4.24x (2.30x) because of an increase in the total debt. Furthermore, EBITDA margins declined to 6.37% in FY17 (FY16: 8.74%) due to an increase in raw material cost. Moreover, the ratings factor in the customer concentration risk as the Ministry of Defense accounts for over 90% of SBEL's top line. The ratings, however, are supported by SBEL's comfortable liquidity profile as indicated by its around 91% utilization of the fund-based working capital limit during the 12 months ended March 2018. Also, SBEL's promoters have almost a decade-long experience in the government contracting business. RATING SENSITIVITIES Negative: Deterioration in the margins leading to a decline in the credit metrics on a sustained basis would be negative for the ratings. Positive: A significant improvement in the top line and credit metrics on a sustained basis would be positive for the ratings. COMPANY PROFILE SBEL was established in 2000 as a partnership firm between Mr. S. K. Goel, Mr. Kamal Goel, Mr. Manish Srivastav, Ms. Rekha Kejriwal. The firm undertakes the development and supply of sensitive technological products for the armed forces and all allied services. The firm has four factories in Bhaadurgarh, Haryana. SHREE RAMDEV: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shree Ramdev Cotton Industries' (SRCI) 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 given below: -- INR4.5 mil. Term loan due on February 2021 migrated to Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR75 mil. Fund-based working capital limit migrated to Non- Cooperating Category with IND B+(ISSUER NOT COOPERATING)/ IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 29, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE SRCI was established as a proprietary concern in 2007 by Mrs. Sangitaben Kapuriya. In September 2009, SRCI was converted into a partnership firm by four partners namely Mr. Vallbhbhai Manjibhai, Mr. Sanjaybhai Kapuriya, Mrs. Sangitaben Kapuriya and Mr. Jentibhai Kakdiya. The firm is engaged in the cotton ginning and pressing business and has an installed production capacity of 100-200 cotton bales per day. SHREE SHYAM: CRISIL Assigns B+ Rating to INR5MM Cash Loan --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Shree Shyam Industries - Barabanki (SSIB). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Assigned) Proposed Long Term Bank Loan Facility 1 CRISIL B+/Stable (Assigned) The rating reflects the firm's modest scale of operations, exposure to intense competition in the rice industry, below- average financial risk profile because of small networth and high gearing, and susceptibility of operating margin to government regulations. These weaknesses are partially offset by the extensive experience of its promoters and established customer relationship. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations and exposure to intense competition: With revenue of INR22.5 crore in fiscal 2017, scale remains small in the intensely competitive rice processing segment. This limits bargaining power with customaers, thereby constraining profitability (2.2% in fiscal 2017). * Below-average financial risk profile: Networth was small at INR1.29 crore and gearing high at 2.73 times, as on March 31, 2017, due to high reliance on working capital debt. Also, debt protection metrics were muted on account of low operating profitability, with interest coverage and net cash accrual to total debt ratios of 2.09 times and 0.07 time, respectively, in fiscal 2017. * Susceptibility of operating margin to government regulations: Agricultural commodity exports, including rice, are highly regulated. Non-basmati rice caters to the masses and meets about 95% of the global demand. In the past, government had imposed a ban on export of non-basmati rice. Any sudden policy change may affect players' profitability. Strengths * Extensive experience of promoters: Presence of more than three decades in the rice industry has enabled the promoters to establish strong relationship with customers. Outlook: Stable CRISIL believes SSIB will continue to benefit over the medium term from the extensive experience of its management. The outlook may be revised to 'Positive' if substantial increase in revenue and profitability improves financial risk profile. The outlook may be revised to 'Negative' in case of lower-than-expected profitability or higher-than-expected working capital debt. Set up in 1990 as a partnership concern by Mr Vijay Agarwal, Mr Anil Agarwal, Mr Sunil Agarwal, and Mr Chetan Agarwal, SSIB mills paddy into processed rice. It also trades in rice, maize, wheat, and yellow and black mustard. Unit in Barabanki, Uttar Pradesh, has installed paddy milling and sorting capacity of 4 tonne per hour. SRI LAKSHMI: CRISIL Withdraws D Rating on INR45MM Loan ------------------------------------------------------ CRISIL Ratings has reaffirmed its rating on the bank facilities of Sri Lakshmi Saraswathi Cotspin Private Limited (SLSCPL) and subsequently withdrawn the ratings at the company's request and on receipt of a no-objection certificate from the bankers. The withdrawal is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 0.5 CRISIL D (Rating reaffirmed and Withdrawal) Foreign 45.0 CRISIL D (Rating reaffirmed Documentary and Withdrawal) Bills Purchase Packing Credit 14.0 CRISIL D (Rating reaffirmed and Withdrawal) Proposed Long Term 0.5 CRISIL D (Rating reaffirmed Bank Loan Facility and Withdrawal) SLSCPL, established in 2001 and based in Chennai, trades in specialty yarns. The firm procures its yarn stock domestically from yarn spinning mills in South India. It derives around 80% of its revenue from exports and the rest from domestic sales to weaving and knitting players in South India. STANDARD CORP: CRISIL Lowers Rating on INR15MM Cash Loan to D ------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term facilities of Standard Corporation India Ltd (SCIL) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Downgraded from 'CRISIL B/Stable') Working Capital 10 CRISIL D (Downgraded from Term Loan 'CRISIL B/Stable') The downgrade reflects delay in meeting debt obligation due to weak liquidity. The company also has large working capital requirement. However, it benefits from the extensive experience of its promoter. Key Rating Drivers & Detailed Description Weakness * Consistent delay in servicing instalments on term debt: The Company has delayed paying instalments on term loan for the last four months (November 2017-February 2018). * Stretched liquidity is reflected in fully utilised bank limit in the 12 months ended February 2018. This is primarily due to large working capital requirement, reflected in gross current assets of 288 days as on March 31, 2017, following large inventory of 188 days and stretched receivables of 66 days. Liquidity will remain weak over the medium term. Strengths * Extensive experience of promoter: Benefits from promoter's experience of around three decades and established relationship with suppliers and customers should support business risk profile. Set up in 1979 as a partnership firm by Mr Nachattar Singh and his brother Mr joginder singh and reconstituted as a public limited company in 2008, SCIL manufactures harvester combines, tractors, and cranes under the Standard brand. Unit in Barnala, Punjab, has capacity to manufacture 2000 harvester combines, 7500 tractors, and 300 cranes per annum. Overall utilisation is, however, low at 25%. SUPER FINE: CRISIL Lowers Rating on INR15MM Cash Loan to D ---------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term facility of Super Fine Rice Industries (SFRI) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects a recent instance of sustained overutilisation of cash credit facility lasting beyond 30 days. The rating also reflects SFRI's modest scale of operation and weak financial risk profile. These weaknesses are partially offset by the extensive experience of its partners. Key Rating Drivers & Detailed Description Weaknesses * Sustained overutilisation in cash credit account: There was a recent instance of sustained overutilisation in the cash credit account lasting beyond 30 days. * Modest scale of operation: With operating income of INR68.24 crore in fiscal 2017, scale of operation remains modest. The modest scale of business limits bargaining power with customers and benefits accruing from economies of scale, thereby exerting pressure on operating margin and constraining revenue growth. * Weak financial risk profile: Networth was small and gearing high at INR2.3 crore and 15.95 times, respectively, as on March 31, 2017. Debt protection metrics were also weak with interest coverage of 1.16 times for fiscal 2017. Strength * Extensive experience of the partners: Benefits from the partners' two decades of experience and established relations with suppliers and customers should support the business risk profile over the medium term. Established in 1998 as a partnership firm, promoted by Mr Krishan Kumar and family, SFRI mills basmati rice at its facility in Faridkot (Punjab). It also engages in opportunistic trading in the rice industry. TVC ELECTRONICS: CRISIL Ups Rating on INR6MM Cash Loan to B+ ------------------------------------------------------------ Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of TVC Electronics (TVC) to 'CRISIL B/Stable; Issuer not cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of TVC from 'CRISIL B/Stable; Issuer not cooperating' to 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6 CRISIL B+/Stable (Migrated from 'CRISIL B/Stable' Issuer Not Cooperating) Standby Line 1 CRISIL B+/Stable (Migrated from of Credit 'CRISIL B/Stable' Issuer Not Cooperating) The upgrade reflects improvement in TVC's business risk profile. Operating income and operating margin rose to INR45.1 crore and 3.5% respectively in fiscal 2017 from INR29.6 crore and 3.2% respectively in fiscal 2015, and cash accrual increased to INR0.4 crore from INR0.2 crore. The upgrade reflects sharing of requisite information by the firm. CRISIL had, on May 19 2017, downgraded the rating to 'CRISIL B/Stable (issuer not cooperating) from 'CRISIL B+/Stable' as the client was not cooperating for the rating exercise. TVC has now shared the required information, enabling CRISIL to assign a revised rating to the bank facilities. The rating reflects TVC's average financial risk profile and working capital intensive nature of operations. These weaknesses are partially offset by the extensive experience of the proprietor in the consumer durable goods retail segment and its established market position. Key Rating Drivers & Detailed Description Weaknesses: * Average financial risk profile: Net worth is modest at INR4.5 crore as on March 31 2017, owing to modest scale of operations and low accretion to reserves in the past. TOL/TNW is moderate at 3.7 times as on March 31 2017. Debt protection metrics are average, marked by NCATD and interest coverage of 7% and 1.7 times respectively in fiscal 2017. * Working capital intensive nature of operations: Operations of the firm are working capital intensive, as indicated by GCA days of 160 as on March 31 2017. High GCA days is on account of large inventory of 156 days. Strengths: * Extensive experience of the proprietor: The firm's proprietor Mr S. G. Ajith Kumar has extensive experience of more than 2 decades in retailing of consumer durable goods. * Established market position: The firm enjoys an established brand position and strong brand recall in the local markets of Cuddalore and Neyveli which are its primary markets. The firm's business profile will continue to benefit over the medium term from its established presence in these markets. Outlook: Stable CRISIL believes that TVC would continue to benefit over the medium term from the extensive industry experience of its proprietor and its established market position. The outlook may be revised to 'Positive' if TVC's revenue or profitability improves considerably leading to higher cash accruals, while maintaining its working capital management. Conversely, the outlook may be revised to 'Negative' in case of a substantial drop in the firm's revenue, major debt-funded expansions or a stretch in its working capital cycle that will lead to a deterioration in its financial risk profile, especially liquidity. Established as a proprietorship firm in 1992, TVC is engaged in the retailing of consumer durables (white goods and small home appliances) with 5 retail outlets spread across Tamil Nadu. Based in Cuddalore (Tamil Nadu), the firm is promoted by Mr S. G. Ajith Kumar. UMAXE PROJECTS: CRISIL Lowers Rating on INR10MM Bank Loan to D -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Umaxe Projects Private Limited (UPPL) to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 5.5 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects delays in repayments towards financial institutions by UPPL due to cash flow mismatches. The ratings reflect UPPL's modest scale of operations in the intensely competitive construction industry, large working capital requirement, and stretched liquidity due to high bank limit utilisation. These weaknesses are partially offset by the experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Delays in payments toward financial institution: The company has delayed the repayments of loans towards the Financial Institutions because of cash flow mismatches * Modest scale of operations amid intense competition: Small scale of operations, with revenue of INR31.68 crore in fiscal 2017, amid intense competition limits pricing power with suppliers and customers, thereby constraining profitability. * Large working capital requirement: Gross current assets were 645 days as on March 31, 2017, driven by receivables of 178 days and inventory (majorly work in progress) of 335 days. The work- in-progress inventory usually remains high and is expected to reduce with project completion. * Stretched liquidity due to high bank limit utilization: Post change in management and equity infusion by new promoters, liquidity has improved, but remains constrained by high bank limit utilisation of 98%. Strength * Experience of promoters: Benefits derived from the promoters' experience of over two decades, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should continue to support the business. UPPL, incorporated in 2007, was earlier managed by Mr Sanjay Garg. In February 2015, Mr Harpal Singh Gambhir (an industrialist) joined as director, and Mr S K Chhabra (a chartered accountant) joined as chief executive officer. The Delhi-based company undertakes construction, including civil construction for government projects, and participates in projects for builders. WHITE BRICKS: CRISIL Moves 'B' Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with White Bricks Buildtech Pvt. Ltd. (WBBPL) for obtaining information through letters and emails dated February 21, 2018 and February 26, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 14.5 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of White Bricks Buildtech Pvt. Ltd.. Which restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes information available on White Bricks Buildtech Pvt. Ltd. is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of White Bricks Buildtech Pvt. Ltd. to 'CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. WBBPL, incorporated in August 2013, is promoted by Mr. Dharmendra Yadav, Mr. Abhay Ram Singh Yadav, and Mrs. Neelam Yadav. The company has set up two AAC block manufacturing units, with a capacity of 150,000 cubic metres each in Aligarh and Kanpur (both in Uttar Pradesh). The first unit at Aligarh was started in September' 2014 and second unit in Kanpur started in June' 2016. YOGAAAND CO: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Yogaa and Co.'s (Yogaa) 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: -- INR50 mil. Fund-based limit migrated to Non-Cooperating Category with IND B+(ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based limit migrated to Non-Cooperating Category with IND A4(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 30, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2007, Yogaa constructs roads and bridges, and executes orders mainly for Public Works Department, National Highways Authority of India ('IND AAA'/Stable) and other public entities. The company is managed by AD Meenaachisundram. ========= J A P A N ========= TAKATA CORP: Court OKs Compensation Plan Over Defective Air Bags ---------------------------------------------------------------- The Japan Times reports that a U.S. district court in Michigan has approved Takata Corp.'s plan to pay $850 million in compensation to automakers for defective air bags it supplied. At least 22 deaths and hundreds of injuries worldwide are linked to Takata inflators that can explode, unleashing metal shrapnel inside cars and trucks, the report says. According to The Japan Times, the bankrupt auto parts firm will make the payments from a fund it will establish. Of the total, $141.3 million will be paid to Toyota Motor Corp., $123.7 million to Volkswagen AG and $121.6 million to Honda Motor Co. More than 60 companies will receive the funds, and the list also includes Nissan Motor Co., General Motors Co. and BMW AG, the report discloses. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCooper54 is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. The Debtors Meunier Carlin & Curfman LLC, as special intellectual property counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the insurance policies. Sakura Kyodo Law Offices will serve as special counsel. Roger Frankel, the legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-counsel. Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. * * * Takata Corporation on Feb. 21, 2018, disclosed that the U.S. Bankruptcy Court for the District of Delaware has confirmed the Fifth Amended Chapter 11 Plan of Reorganization filed by TK Holdings, Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's subsidiaries and affiliates. ===================== P H I L I P P I N E S ===================== EMPIRE RURAL: Creditors Have Until May 7 to File Claims ------------------------------------------------------- Creditors of the closed Empire Rural Bank, Inc. have until May 7, 2018, only to file their claims against the bank's assets. Claims filed after said date shall be disallowed. Creditors refer to any individual or entity with a valid claim against the assets of the closed Empire Rural Bank and include depositors with uninsured deposits that exceed the maximum deposit insurance coverage (MDIC) of PHP500,000. The Philippine Deposit Insurance Corporation (PDIC), the liquidator of the closed Empire Rural Bank, announced that creditors of the closed bank may file their claims personally at the PDIC Public Assistance Center located at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM, except holidays. Creditors also have the option to file their claims through mail addressed to the PDIC Public Assistance Department, 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City. The prescribed Claim Form against the assets of the closed bank may be downloaded from the PDIC website, www.pdic.gov.ph. The Corporation also reiterated that creditors should transact only with authorized PDIC personnel. In case claims are denied, creditors shall be notified officially by PDIC through mail. Claims denied or disallowed by the PDIC may be filed with the liquidation court within sixty (60) days from receipt of final notice of denial of claim. In addition, PDIC said that depositors with account balances of more than the MDIC of PHP500,000 who have already filed claims for the insured portion of their deposits are deemed to have filed their claims for the uninsured portion or the amount in excess of the MDIC. PDIC, as Receiver of closed banks, requires personal data from creditors to be able to process their claims and protects these data in compliance with the Data Privacy Act of 2012. Empire Rural Bank was ordered closed by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas on February 22, 2018 and as the designated Receiver, PDIC was directed by the MB to proceed with the takeover and liquidation of the closed bank in accordance with Section 12(a) of Republic Act No. 3591, as amended. The bank is located at 154 C.M. Recto Avenue, Poblacion Barangay 4, Lipa City, Batangas. All requests and inquiries relating to the closed Empire Rural Bank should be addressed to the PDIC Public Assistance Department through mail at the 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City, or through telephone numbers (02) 841-4630 or 841-4631. Depositors and creditors outside Metro Manila may call the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342). Walk-in clients may also visit the PDIC Public Assistance Center at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM, except holidays. ==================== S O U T H K O R E A ==================== STX OFFSHORE: Submits Self-Rescue Program to Main Creditor Bank --------------------------------------------------------------- Yonhap News Agency reports that STX Offshore & Shipbuilding Co. and its union have submitted a package of self-rescue measures to the state-run Korea Development Bank, a breakthrough that will keep the financially troubled midsize shipbuilder afloat. The two sides also reached a deal on restructuring measures, hours after creditors, led by the KDB, said they will place the debt-ridden shipbuilder under court receivership, Yonhap says. Before the deadline that expired at midnight Monday [April 9], creditors said that they can issue refund guarantees for new ships and keep the company in operation if STX Offshore's management and union agree on a package that includes a 75 percent job reduction, according to Yonhap. STX Offshore, once the world's fourth-biggest shipbuilder by orders, was placed under court receivership in 2016 and graduated from the program in July 2017. STX Offshore & Shipbuilding Co. Ltd. is a Korea-based company mainly engaged in the shipbuilding and offshore business. The company operates its business through five segments: merchant vessel, cruise, offshore and specialized vessel (OSV), vessel apparatus and other segment. ============= V I E T N A M ============= ASIA COMMERCIAL: Moody's Hikes LT Bank Deposit Rating to B1 ----------------------------------------------------------- Moody's Investors Service has upgraded the long-term local currency deposit and local- and foreign-currency issuer ratings of Asia Commercial Bank (ACB), Military Commercial Joint Stock Bank (Military Bank), and Vietnam Technological and Commercial JSB (Techcombank) to B1 from B2. Moody's has also affirmed the foreign currency deposit ratings of these three banks at B2, with the ratings constrained by Vietnam's foreign currency deposit ceiling of B2. And, Moody's has upgraded the Baseline Credit Assessments (BCA) for the three banks to b1 from b2. At the same time, Moody's has affirmed the long-term local and foreign-currency deposit and issuer ratings of Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) at B2, and upgraded the bank's BCA to b2 from b3. Simultaneously, Moody's has changed the outlooks on the local- currency deposit and local- and foreign-currency issuer ratings of ACB, Military Bank, and Techcombank to stable from positive, and revised the outlook for the same ratings for VP Bank to positive from stable. The ratings of the other 12 banks rated by Moody's in Vietnam remain unchanged. RATINGS RATIONALE ACB, MILITARY BANK AND TECHCOMBANK Moody's upgraded the ratings of ACB, Military Bank and Techcombank to B1 from B2 based on Moody's upgrade of the banks' BCAs to b1 from b2. For ACB, the upgrade of its BCA reflects its improved asset quality, following the good progress in the resolution of its legacy problem assets, including the problem assets related to a group of six companies tied to its former Vice Chairman Mr. Nguyen Duc Kien. ACB's problem loans ratio, as adjusted by Moody's, declined to 0.95% at the end of 2017 from 2.99% at the end of year 2016, driven largely by the full write-down of the VND1.5 trillion of bonds issued by the Vietnam Asset Management Company (VAMC). In Vietnam, Moody's defines problem loans as loans under categories 2-5 of Vietnamese accounting standards, and gross bonds issued by the VAMC. Moody's expects ACB's asset quality to remain stable over the next 12-18 months on the back of an improvement in the operating environment, which will in turn support the repayment capacity of the bank's borrowers. ACB's BCA also reflects Moody's expectation of a gradual decline in the bank's capital levels, as growth outpaces internal capital generation. At the end of 2017, the bank's tangible common equity to risk-weighted assets (TCE/RWA) stood at a moderate 8.2%. The upgrade of Military Bank's BCA to b1 from b2 is driven by the consistent improvement in its asset quality as well as Moody's expectation of an improvement in the bank's return on tangible assets (ROA) in 2018, as it expands into the higher yielding retail segment, and reduces its loan loss provisioning levels. The bank's problem loans ratio improved to 2.9% in 2017 from 4.7% in 2016, mainly due to the full write-off of VAMC bonds for VND3.4 trillion. Moody's expects that Military Bank's asset quality will remain stable over the next 12-18 months. On the other hand, Military Bank's BCA also takes into consideration the bank's modest loss-absorbing buffers and rapid loan growth which will exert downward pressure on its capitalization. As for Techcombank, its BCA upgrade is driven by improved solvency metrics, namely capital, asset quality and profitability. The bank substantially improved its core capital buffer through different transactions in the last five months, with the latest and most significant being the USD370 million capital injection in March 2018 from a US private equity firm, Warburg Pincus. On a pro-forma basis as of the end of 2017, Moody's estimates that the bank's TCE/RWA increased to 14.5%, from 9.0% in 2016, giving Techcombank the largest core capital buffer among the 16 Moody's- rated banks in Vietnam. Moody's expects that the bank's TCE/RWA ratio will normalize at a lower level over the next two years, driven by credit growth and investments. Techcombank's adjusted problem loans ratio improved to 4.2% in 2017 from 7.3% in 2016, including loans under categories 2-5 of Vietnamese accounting standards, gross VAMC bonds and problematic receivables. Moody's notes that the stock of gross problem assets decreased 37% in 2017 to VND6.8 trillion, mainly due to the full write-off of VAMC bonds for VND2.9 trillion, and a substantial decrease in receivables. Moody's expects that Techcombank's will fully write-off its receivables for VND1.9 trillion in 2018, contributing to the bank's healthier asset quality. Techcombank's loan book was fairly diversified at the end of 2017, with 44% in the corporate segment, 16% in the SME segment, and 40% in retail loans. The share of retail loans will likely increase in 2018, while that of corporate loans will decrease. Techcombank's ROA improved to 2.4% in 2017 from 1.3% in 2016. The improvement was mainly driven by lower credit costs, as well as a one-off gain related to an insurance distribution contract (VND1.4 trillion fee). Moody's expects that the bank will maintain a good ROA of around 2% in 2018-2019. Moody's continues to incorporate a moderate probability of support from the Government of Vietnam (B1 positive) in the ratings of ACB, Military bank and Techcombank. However, this moderate support assumption does not result in any ratings uplift, because these banks' b1 BCAs are at the same level as Vietnam's B1 sovereign rating. Moody's moderate systemic support assumption for these three banks is driven by their modest market shares and the history of public support for the country's banking system. VP BANK Moody's affirmed VP Bank's B2 ratings and upgraded its BCA to b2 from b3. The upgrade of VP Bank's BCA takes into account the bank's high profitability, as well as its improved capital buffer. The BCA also considers VP Bank's heightened credit risks from its consumer finance portfolio, and weak problem loan coverage when compared to domestic and global peers. VP Bank's ROA outperformed that of most of its domestic peers, improving to 2.3% in 2017 from 1.7% in 2016. Pre-provision income grew by 56% in 2017 and 57% in 2016. Moody's attributes the strong revenue growth to the bank's growth, and its leading market share in the high margin consumer finance business. The bank's TCE/RWA ratio improved to 12.1% at the end of 2017 from 8.5% at the end of 2016. The improvement was driven by the issuance of new shares, stock dividends and bonus shares, as well as higher retained earnings, against a more moderate year-on-year loan growth rate of 26% in 2017 compared to growth rates that averaged 41% during 2013-2016. The b2 BCA also captures VP Bank's weak asset quality metrics, as the bank has 20% of its loans in the higher-risk consumer finance segment. Around 12% of its adjusted gross loans were problematic at the end of 2017; a result which was marginally higher than the 11% in 2016. Loan-loss reserves covered 51% of the bank's reported nonperforming loans at the end of 2017 (2016: 50%). If special-mention loans and bonds issued by VAMC are added, the problem loans coverage ratio falls to 17% as of the same date. Moody's continues to incorporate a moderate probability of government support in VP Bank's ratings. However, this assessment of support does not result in any ratings uplift because the bank's b2 BCA is just one notch lower than the B1 sovereign rating for Vietnam. Moody's moderate systemic support assumption for VP Bank is driven by the bank's modest 3% share of system assets and loans at September 30, 2017. FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE Moody's will consider upgrading the ratings of ACB, Military Bank and Techcombank if the following two conditions are met: (1) Moody's upgrades Vietnam's sovereign rating, and (2) The three banks post improved standalone credit metrics that lead to higher BCAs. Moody's could upgrade the BCAs of these three banks, if macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country. However, Moody's could downgrade the BCAs and ratings if: (1) the banks demonstrate a material deterioration in their capital adequacy, or (2) the operating environment deteriorates significantly, against the backdrop of a loosening of the banks' underwriting practices; thereby exposing them to asset quality risks. As for VP Bank, Moody's could upgrade its ratings if Moody's upgrades Vietnam's sovereign rating. Moody's will also consider raising VP Bank's BCA and long-term ratings, if its financial results demonstrate sustainable improvements in asset quality and loss-absorbing buffers, including loan loss reserves and capital buffers. Moreover, Moody's could upgrade the BCA of the bank, if macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country. On the other hand, VP Bank's long-term ratings could be downgraded, if the bank pursues an overly aggressive expansion strategy that leads to a loosening of underwriting practices, which then pose asset quality risks or a material decline in capitalization. The principal methodology used in these ratings was Banks published in September 2017. Asia Commercial Bank is headquartered in Ho Chi Minh City, with total assets of VND284,316 billion (USD12.5 billion) at December 31, 2017. Military Commercial Joint Stock Bank is headquartered in Hanoi, with total assets of VND313,878 billion (USD13.8 billion) at December 31, 2017. Vietnam Technological And Commercial JSB is headquartered in Hanoi, with total assets of VND269,392 billion (USD11.9 billion) at December 31, 2017. Vietnam Prosperity Joint Stock Commercial Bank is headquartered in Hanoi, with total assets of VND277,752 billion (USD12.2 billion) at December 31, 2017. LIST OF AFFECTED RATINGS ASIA COMMERCIAL BANK - Long-term foreign currency bank deposit rating affirmed at B2; outlook maintained at stable - Long-term local currency bank deposit ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term local and foreign currency issuer ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term CR Assessment upgraded to Ba3(cr) from B1(cr) - Short-term local currency and foreign currency deposit ratings affirmed at NP - Short-term local currency and foreign currency issuer ratings affirmed at NP - Short-term CR Assessment affirmed at NP(cr) - BCA and Adjusted BCA upgraded to b1 from b2 - Outlook changed to stable from stable (m) MILITARY COMMERCIAL JOINT STOCK BANK - Long-term foreign currency bank deposit rating affirmed at B2; outlook maintained at stable - Long-term local currency bank deposit ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term local and foreign currency issuer ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term CR Assessment upgraded to Ba3(cr) from B1(cr) - Short-term local currency and foreign currency deposit ratings affirmed at NP - Short-term local currency and foreign currency issuer ratings affirmed at NP - Short-term CR Assessment affirmed at NP(cr) - BCA and Adjusted BCA upgraded to b1 from b2 - Outlook changed to stable from stable (m) VIETNAM TECHNOLOGICAL AND COMMERCIAL JSB - Long-term foreign currency bank deposit rating affirmed at B2; outlook maintained at stable - Long-term local currency bank deposit ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term local and foreign currency issuer ratings upgraded to B1 from B2; outlook changed to stable from positive - Long-term CR Assessment upgraded to Ba3(cr) from B1(cr) - Short-term local currency and foreign currency deposit ratings affirmed at NP - Short-term local currency and foreign currency issuer ratings affirmed at NP - Short-term CR Assessment affirmed at NP(cr) - BCA and Adjusted BCA upgraded to b1 from b2 - Outlook changed to stable from stable (m) VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK - Long-term foreign currency bank deposit rating affirmed at B2; outlook maintained at stable - Long-term local currency bank deposit ratings affirmed at B2; outlook changed to positive from stable - Long-term local and foreign currency issuer ratings affirmed at B2; outlook changed to positive from stable - Long-term CR Assessment upgraded to B1(cr) from B2(cr) - Short-term local currency and foreign currency deposit ratings affirmed at NP - Short-term local currency and foreign currency issuer ratings affirmed at NP - Short-term CR Assessment affirmed at NP(cr) - BCA and Adjusted BCA upgraded to b2 from b3 - Outlook changed to stable (m) from stable ********* 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, Psyche A. Castillon, 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 ***