/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180531.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 Thursday, May 31, 2018, Vol. 21, No. 107 Headlines A U S T R A L I A BAKER FAMILY 2: Second Creditors' Meeting Set for June 7 JPD MEDIA: Second Creditors' Meeting Set for June 6 LESSO BUILDING: First Creditors' Meeting Set for June 6 MK DESIGN: Second Creditors' Meeting Scheduled for June 6 STATEWIDE OFFICE: Second Creditors' Meeting Set for June 6 STOCK GROUP: First Creditors' Meeting Set for June 6 WESTERN LIBERTY: Moody's Puts Ba2 Rating on Review for Upgrade C H I N A ANBANG INSURANCE: Ex-Chairman Appeals Against Fraud Conviction FOSUN INTERNATIONAL: S&P Affirms 'BB' ICR, Outlook Stable JIAMGSU ZHONGNAN: Moody's Gives First-Time B2 CFR, Outlook Stable OCEANWIDE HOLDINGS: Fitch Cuts LT IDR & Sr. Unsec. Rating to 'B-' TIMES CHINA: Fitch Gives Final BB- Rating on $450MM Sr. Notes TIMES CHINA: Fitch Rates Proposed USD Sr. Notes 'BB-(EXP)' TIMES CHINA: Moody's Assigns B1 Sr. Sec. Rating to Proposed Notes I N D I A AAKARSHIT ICE: CRISIL Moves B+ Rating to Non-Cooperating Category ABAJ ELECTRONICS: CRISIL Moves B- Rating to Non-Cooperating Cat. ACCORD BUILDCON: CRISIL Withdraws D Rating on INR100cr NCD ADITYA INVESTMENT: CRISIL Lowers Rating on INR15MM Loan to D AMBIENCE CONSTRUCTIONS: Ind-Ra Moves BB Rating to Non-Cooperating ANACON PROCESS: CRISIL Assigns B+ Rating to INR4.50MM Book Debt ANNPURNA RICE: CARE Assigns B+ Rating to INR7cr LT Loan AQUARIOUS MARKETING: Ind-Ra Affirms BB LT Rating, Outlook Stable ARYA FIN-TRADE: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable ASHA CONCAST: CRISIL Moves B+ Rating to Non-Cooperating Category ASHA ISPAT: CRISIL Migrates B+ Rating to Not Cooperating Category BHAGIRATH DHANNALAL: CARE Assigns B Rating to INR6.50cr LT Loan BHOLA NATH: CARE Assigns B+ Rating to INR6.60cr LT Loan BHOLA NATH: CRISIL Migrates B Rating to Non Cooperating Category ELECTROSTEEL STEEL: Vedanta Asks NCLAT to Lift Stay Over Sale FSD BUILDING: CRISIL Migrates B+ Rating to Not Cooperating GYANKUND TRUST: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating GURUNAK RICE: CARE Assigns B+ Rating to INR4cr LT Loan HARMONY SHUBHAM: CRISIL Withdraws B Rating on INR7.5MM Term Loan HEARTS MALABAR: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable HI-TECH PACKAGING: CRISIL Assigns B+ Rating to INR3.42MM Loan JBF INDUSTRIES: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating JBF PETROCHEMICALS: Ind-Ra Migrates 'D' Rating to Non-Cooperating JIWANSAAGAAR REALTY: CRISIL Withdraws B+ Rating on INR14MM Loan K.A.I.G. CONSTRUCTIONS: CRISIL Moves B+ Rating to Non-Cooperating MAHESHWARI FABTEX: CRISIL Reaffirms B+ Rating on INR8MM Loan MNG OVERSEAS: CRISIL Migrates B+ Rating to Non-Cooperating OPTIONS LAWNS: CARE Reaffirms B+ Rating on INR8.01cr LT Loan PARAS TARP: CRISIL Migrates B+ Rating to Non-Cooperating Category POWERTECH ELECTROINFRA: CRISIL Moves B Rating to Non-Cooperating PROGRESSIVE INDUSTRIES: CRISIL Moves B- Rating to Not Cooperating RAJ REGENCY: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating RC ALL-TECH: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating RELIANCE COMMMUNICATIONS: Deal with Minority Investors Reached SHRI HARI: CARE Assigns B+ Rating to INR8cr LT Loan STRANDS TEXTILE: Ind-Ra Maintains BB LT Rating in Non-Cooperating SUPER INFRATECH: CRISIL Migrates D Rating to Non-Cooperating TIRVANI RICE: CRISIL Migrates B Rating to Not Cooperating Cat. TULSI MARKETING: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating TURBO CAST: CRISIL Migrates B+ Rating to Not Cooperating Category VAISHNAVI EXPORTS: CRISIL Cuts Rating on INR15MM Loan to D VIKAS TRANSPORT: CRISIL Moves B+ Rating to Not Cooperating Cat. VINOD KUMAR: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating VISION METALIK: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan VSR LAMINATES: CRISIL Withdraws B Rating on INR5.14MM Loan YOGESH TRADING: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating J A P A N SAKAE RHYTHM: Suspends Business After Racking Up JPY772MM in Debt N E W Z E A L A N D MEDIAWORKS NZ: Posts NZ$5.7MM Net Loss in Year Ended Dec. 31 S I N G A P O R E PACIFIC RADIANCE: Seeks Court Led Restructuring - - - - - ================= A U S T R A L I A ================= BAKER FAMILY 2: Second Creditors' Meeting Set for June 7 -------------------------------------------------------- A second meeting of creditors in the proceedings of Baker Family Investments No. 2 Pty Ltd, trading as Stellarossa Narangba, has been set for June 7, 2018, at 11:00 a.m. at the offices of Worrells Solvency & Forensic Accountants, Building 11 Unit A, Lakes Vista Park, 2 Flinders Parade North Lakes, in Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 6, 2018, at 5:00 p.m. Paul Nogueira of Worrells Solvency was appointed as administrator of Baker Family on May 4, 2018. JPD MEDIA: Second Creditors' Meeting Set for June 6 --------------------------------------------------- A second meeting of creditors in the proceedings of JPD Media & Design Pty Ltd has been set for June 6, 2018, at 4:00 p.m. at the offices of Worrells Solvency & Forensic Accountants, Suite 1, Level 15, 9 Castlereagh Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 5, 2018, at 5:00 p.m. Simon Cathro of Worrells Solvency was appointed as administrator of JPD Media on May 3, 2018. LESSO BUILDING: First Creditors' Meeting Set for June 6 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Lesso Building Material Trading (Sydney) Pty Limited, trading as Lesso Home Greenacre, will be held at Level 30, 264 George Street, in Sydney, NSW, on June 6, 2000, at 11:00 a.m. Peter Paul Krejci and Andrew John Cummins of BRI Ferrier were appointed as administrators of Lesso Building on May 25, 2018. MK DESIGN: Second Creditors' Meeting Scheduled for June 6 --------------------------------------------------------- A second meeting of creditors in the proceedings of MK Design & Construction Pty Ltd has been set for June 6, 2018, at 3:00 p.m. at the offices of GS Andrews Advisory, 22 Drummond Street, in Carlton, Victoria. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 5, 2018, at 5:00 p.m. Gregory Stuart Andrews and Andrew Juzva of G S Andrews Advisory were appointed as administrators of MK Design on May 2, 2018. STATEWIDE OFFICE: Second Creditors' Meeting Set for June 6 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Statewide Office Furniture Pty Ltd has been set for June 6, 2018, at 11:00 a.m. at the offices of Kingsgrove RSL Club, 8 Brocklehurst Ln, in Kingsgrove, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 5, 2018, at 5:00 p.m. Alan Hayes of Hayes Advisory was appointed as administrator of Statewide Office on May 2, 2018. STOCK GROUP: First Creditors' Meeting Set for June 6 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Stock Group Investments Pty. Ltd. will be held at the offices of Deloitte Financial Advisory Pty Ltd, Level 17, 11 Waymouth Street, in Adelaide, SA, on June 6, 2018, at 2:00 p.m. Neil Robert Cussen of Deloitte Financial was appointed as administrator of Stock Group on May 25, 2018. WESTERN LIBERTY: Moody's Puts Ba2 Rating on Review for Upgrade -------------------------------------------------------------- Moody's Investors Service has placed the Ba2 senior secured ratings on Western Liberty Group Finance Pty Ltd's (WLGF) bonds on review for upgrade. WLGF is the financing vehicle for Western Liberty Group (WLG), a special purpose vehicle which contracted with the State of Western Australia (Western Australia Treasury Corporation, Aa2 stable) to design, build, refurbish, finance and maintain the District Court Building and the Central Law Courts custodial area in Perth under a public private partnership (PPP) framework. WLGF intends to refinance its AUD77 million bullet bonds, which have a scheduled maturity in June 2018 and legal maturity in June 2020, with a proposed AUD83.3 million 13-year fully amortising bank facility and cash on hand. AUD9.7 million of the proposed facility will be used to fund an upgrade of the technical court services (TCS) as directed by the state. WLGF's other existing debt - comprising of AUD27 million annuity bonds and AUD110 million CPI-indexed annuity bonds - will be fully amortised by June 2018 and June 2031 respectively. At March 31, 2018, the outstanding amount of these bonds was AUD0.8 million and AUD93 million respectively. The execution of the refinancing plan is subject to the state's consent. RATINGS RATIONALE "The review for upgrade reflects our belief that WLGF is highly likely to execute the refinancing, a development that will materially strengthen the project's credit profile by improving debt service coverage ratios and eliminating its exposure to refinancing risk," says Simon Poidevin, a Moody's Analyst. Refinancing risk was a key constraining factor for the ratings, with the project's fundamental credit profile being more consistent with a higher ratings level. WLGF's ratings could be upgraded to Baa1 on completion of the refinancing, provided that the terms and conditions are consistent with those presented to Moody's, and there are no changes to the project's fundamental credit position. Moody's has previously said that a successful refinancing is likely to result in a multi-notch upgrade. The placement on review for upgrade also considers that the proposed refinancing is still subject to formal state approval. WLGF's ratings are underpinned by the project's predictable cash flow associated with the availability payment stream from the state, stable operating track record, and extensive contracting of its performance obligations to experienced operators. Although WLG's services are more complex than its rated Australian peers, Moody's notes the operators' established track record of meeting contractual operating requirements. WLGF's ratings also consider Moody's belief that the TCS upgrade will be successfully executed, given its low complexity and modular nature. However, as is the case with PPPs in general, WLGF's ratings are constrained by its high financial leverage, as measured by the average debt service coverage ratio (DSCR). Moody's expects WLG's DSCR to average 1.2x over the term of the proposed facility after refinancing. WLGF's ratings will likely be upgraded on completion of the refinancing as presented to Moody's. The rating could be downgraded if Moody's believes that the refinancing as presented is unlikely to be completed on a timely manner, which could result from a failure of the state to provide its consent. Negative ratings pressure could also result if there is: (1) a material deterioration in WLG's operating performance, (2) a material weakening in the subcontractors' credit profile, or (3) a downgrade of the state's rating. The principal methodology used in these ratings was Operational Privately Financed Public Infrastructure (PFI/PPP/P3) Projects published in March 2015. ========= C H I N A ========= ANBANG INSURANCE: Ex-Chairman Appeals Against Fraud Conviction -------------------------------------------------------------- Gabriel Wildau at The Financial Times reports that Wu Xiaohui, the former chairman of Anbang Insurance Group, has appealed his conviction for fraud and embezzlement, according to his lawyer. The FT notes that a Shanghai court sentenced Mr. Wu to 18 years in early May for issuing false disclosures to regulators and diverting insurance premiums for his personal use. The court also confiscated RMB10.5 billion (US$1.6 billion) in assets. According to the FT, Mr. Wu denied the charges against him on the first day of his trial but later shifted tone as he asked the court for leniency. Chen Youxi, chairman of Capital Equity Legal Group, disclosed the appeal on his Sina Weibo microblog account on May 30 without giving further details, the report says. Appeals of criminal convictions rarely succeed in China, though courts do sometimes reduce sentences, the FT states. About Anbang Insurance Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers property insurance, life insurance, health insurance, asset management, insurance sales agency, and insurance brokerage services. The company provides car insurance, accident insurance, cargo transportation insurance, credit insurance, life-long insurance, and medical insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2018, The Strait Times related the Chinese government had seized control of Anbang Insurance, the troubled Chinese company that owns the Waldorf Astoria hotel in New York and other marquee properties around the world, and charged its former chairman with economic crimes. The Strait Times noted that the move is Beijing's biggest effort yet to rein in a new kind of Chinese company, in this case, one that spent billions of dollars around the world over the past three years buying up hotels and other high-profile properties. The rise of these companies illustrates China's growing economic might, but Chinese officials have grown increasingly concerned that they were piling up debt to make frivolous purchases. In a statement posted on its website on Feb. 23, the China Insurance Regulatory Commission said the government was taking over to ensure the "normal and stable operation" of the company. "Illegal operations at Anbang may have seriously endangered the company's solvency, prompting the government to take control," the statement read. The Strait Times noted the move also caps the downfall of Anbang leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng Xiaoping, China's paramount leader in the 1980s and a towering figure in Chinese politics, and was widely considered politically connected. FOSUN INTERNATIONAL: S&P Affirms 'BB' ICR, Outlook Stable ---------------------------------------------------------- S&P Global Ratings affirmed its 'BB' long-term issuer credit rating on China-based investment holding company, Fosun International Ltd. The outlook is stable. At the same time, S&P affirmed its 'BB' long-term issue rating on the outstanding guaranteed notes issued by the company's financing platform, Wealth Driven Ltd. and Fortune Star (BVI) Ltd. S&P said, "We affirmed the ratings to reflect our view that Fosun will sustainably grow with a balanced investment and divestment strategy. We also expect the company to maintain a loan-to-value (LTV) ratio of 30%-40% over the next two years." Fosun's well-diversified investment portfolio and the stable credit quality of its key investees support its fair investment position, in S&P's view. Fosun's investment portfolio increased to about Chinese renminbi (RMB) 237 billion as of end-2017, from RMB204.6 billion in 2016, mainly due to appreciation in the value of its listed assets. The company's portfolio ranges from healthcare, insurance, consumer products, leisure to commodities in Asia-Pacific, Europe, and the Americas. This diversity could help Fosun to better navigate industry cyclicality and dilute risks in a single market. At the same time, most of its invested assets have sustainably growing operations with stable credit quality. Fosun's asset liquidity is constrained by its large amount of unlisted investees. S&P expects these investees to account for less than half of Fosun's asset portfolio over the next two years, compared with 57.6% as of end-2017. Fosun's asset capitalization and IPO plans should temper the risk and allow flexibility of available-for-sale assets. Fosun's ongoing asset injection into listed investee company, Shanghai Yuyuan Tourism Mall, and more potential IPOs for some key assets should back the company's plan to improve asset liquidity. However, the timeframe of these plans are uncertain and they are unlikely to materialize in the next 12 months. Fosun's short operating record in exiting investments is another risk to its investment profile. In the past years, the company has rapidly grown its assets portfolio through acquisitions. However, it has not made many exits to recycle cash for debt repayment. S&P said, "In our view, Fosun has shown investment discipline by developing a set of investment policies, guidances for short-term financial tolerance, and a risk control system. Such an approach supports its investment capability, which we assess as neutral to our assessment of its investment position." S&P said, "Fosun has a manageable leverage, in our view, with a LTV ratio of about 35% at the end of 2017. We take into account the company's legacy financial guarantees of about RMB3.6 billion to invested companies, which will be gradually replaced by new borrowings issued by the investee companies. "We expect Fosun to maintain its LTV ratio below 45% by rotating assets at a balanced pace. At the same time, the company's deleveraging and increasing dividend income should continue to improve its operating cash flow adequacy. These factors support our assessment of the company's financial risk profile as significant. "The stable outlook over the next 12 months reflects our expectation that Fosun would maintain a well-diversified asset portfolio and gradually improve its asset liquidity via asset capitalization and IPOs. The company's diversified portfolio should support its flexibility to navigate industry cyclicality and help avoid concentration risk in any single market. We expect the company will maintain its LTV ratio at 30%-40% while making investments and disposal plans. "We may lower the rating if Fosun's LTV ratio rises above 45% on a sustained basis. This could happen if: (1) the company pursues more aggressive debt-funded investments than we expect; (2) its asset valuation materially depreciates; or (3) Fosun keeps investing in assets with weak credit profiles, which makes asset rotation more difficult. "We would also consider a downgrade if the company's cash flow adequacy falls below 0.7x. This could happen if dividend and interest income materially decline." A deterioration in liquidity could also trigger a downgrade. An indication of that would be a diminishing buffer of cash on hand and highly liquid investments against short-term borrowings and committed investments. S&P said, "We may raise the rating if Fosun's LTV ratio remains below 30% on a sustainable basis. This could happen if the company continues to reduce debt, or its portfolio value appreciates. "We would also consider an upgrade if Fosun's asset liquidity materially improves, although we view that as a remote event in the next 12 months. Nevertheless, that could happen if Fosun accelerates capitalization of its portfolio assets through IPOs, leading to listed assets accounting for more than 60% of its overall portfolio value." JIAMGSU ZHONGNAN: Moody's Gives First-Time B2 CFR, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has assigned a first-time B2 corporate family rating (CFR) to Jiangsu Zhongnan Construction Group Co., Ltd. The rating outlook is stable. RATINGS RATIONALE "Jiangsu Zhongnan's B2 CFR reflects the company's strong sales execution, good brand in property development in Jiangsu Province, and sizable operating scale," says Franco Leung, a Moody's Senior Vice President. The company has demonstrated an ability to generate strong contracted sales growth, as supported by its fast asset turnover business model. In 2017, contracted sales grew by 158% year-on- year to RMB96.3 billion, after a 66% growth in 2016 to RMB37.3 billion. Its strong contracted sales in 2016-2017 will support the revenue growth in its property segment over the next 2-3 years. Moody's expects that Jiangsu Zhongnan's total contracted sales will continue to grow at an annual rate of 10%-15% for 2018 to around RMB100-RMB110 billion, given its sizable land bank of 23.5 million square meters and sellable resources of around RMB260 billion at the end of 2017. Such a scale is larger than for most single B-rated Chinese property developers. "At the same time, the B2 CFR considers the synergies between its two core business segments: property development and construction, and the execution risk associated with its rapid expansion," adds Leung, who is also Moody's Lead Analyst for Jiangsu Zhongnan. Jiangsu Zhongnan's construction segment accounted for an estimated 15%-25% of its total revenue and gross profit in 2017, second only to contributions from its property development segment. Moody's expects that the company's expertise in building construction will help shorten the construction cycle of its property development projects and reduce execution risks when it expands into new markets. The construction business will also potentially help Jiangsu Zhongnan source new development opportunities. The benefits from such synergies, however, are partly offset by the modest credit profile of the construction segment. Specifically, the construction segment operates in a highly competitive business environment, and demonstrated a lower gross margin of around 10% in 2016-2017 versus the 18.5% of the property development segment during the same period. The construction segment also shows high working capital needs, due in part to the large receivables associated with its contracting services. The rating also reflects the company's modestly diversified capital structure and good track record of accessing the domestic debt capital markets and other financing channels. It issued domestic bonds totaling around RMB17 billion from 2015 to 2017, and raised equity capital of about RMB4.6 billion in 2016. Moody's expects that Jiangsu Zhongnan's good access to funding will support its capital needs for ongoing business development. On the other hand, the company's B2 rating is constrained by its geographic concentration in Jiangsu Province, rapid business expansion and weak financial metrics. Jiangsu Zhongnan's property business demonstrates a certain level of geographic concentration in Jiangsu Province. In particular, around 42% of its land bank was located in the province at the end of 2017, and the province will contribute an estimated 40%-50% of its total contracted sales over the next 12-18 months. Nevertheless, such concentration risk is partly mitigated by the healthy economic position of Jiangsu Province, the strong demand in the province for property, as well as the company's land purchases in first- and second-tier cities, particularly in Suzhou, Nanjing and Shanghai since 2015, where property demand is generally strong. Jiangsu Zhongnan's rating is also constrained by its weak financial metrics, in particular, its high debt leverage, as a result of sizable land acquisitions and construction spending requirements. The company's fast business expansion will entail high funding requirements. For example, it spent an estimated 70%-80% of its cash collected from property sales on land purchases during 2017, which increased in turn the debt funding requirement for the rest of its operations. Over the next 12-18 months, Moody's expects that Jiangsu Zhongnan's debt leverage - as measured by revenue/adjusted debt - will trend towards 60%-65% from 54% in 2017. Its adjusted EBIT interest coverage will likely remain around 1.4x over the same period. These credit metrics position the company appropriately at a B2 CFR. Jiangsu Zhongnan's liquidity profile is adequate, despite a fall in cash to short-term debt of around 85% at the end of 2017 from 123% at the end of 2016. Its total cash balance of RMB14.3 billion at 31 December 2017 and operating cash flow will be adequate to cover its short-term debt of RMB13.2 billion, onshore bonds puttable within one year of RMB3.6 billion, and committed land payments. The rating outlook is stable, reflecting Moody's expectation that Jiangsu Zhongnan will: (1) control its debt leverage while expanding its business, (2) achieve modest contracted sales growth and; (3) maintain a stable liquidity position over the next 12-18 months. Upward rating pressure could emerge, if Jiangsu Zhongnan improves its financial profile - for example, by showing higher profit margins and lower debt leverage - while demonstrating a track record of stable growth in its property development and construction business. Financial indicators of upgrade rating pressure include adjusted EBIT interest coverage exceeding 2.25x-2.50x and adjusted revenue/debt trending above 70% on a sustained basis. On the other hand, downward rating pressure could emerge, if Jiangsu Zhongnan: (1) executes heavily debt-funded expansions and/or acquisitions; (2) suffers from negative contracted sales or revenue growth and; (3) demonstrates a deteriorating liquidity position on a sustained basis. Financial indicators reflecting the above scenario include adjusted EBIT interest coverage below 1.0x, and cash to short-term debt below 80% on a sustained basis. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. Jiangsu Zhongnan Construction Group Co., Ltd, a company based in Jiangsu Province, engages in two major businesses: property development and construction services. It listed on the Shenzhen Stock Exchange in 2008. The property development segment principally focuses on developing residential properties. It had a total land bank of around 23 million square meters across Jiangsu Province, the Yangtze River Delta Region, Bohai Economic Rim and Southern China at Dec. 31, 2017. OCEANWIDE HOLDINGS: Fitch Cuts LT IDR & Sr. Unsec. Rating to 'B-' ----------------------------------------------------------------- Fitch Ratings has downgraded China-based Oceanwide Holdings Co. Ltd.'s (Oceanwide) Long-Term Foreign-Currency Issuer Default Rating (IDR), senior unsecured rating and the rating on its outstanding US dollar senior notes to 'B-' from 'B'. The Recovery Rating on its senior unsecured rating is 'RR4'. The Outlook on the IDR is Stable. The downgrade reflects the rise of Oceanwide's net debt by CNY28 billion in 2017 following a similar increase in 2016. The rate of increase in indebtedness is much faster than Fitch's expectations and means that Oceanwide's leverage, as measured by net debt/adjusted inventory including available for sale financial assets (AFS) and financial institution (FI) investments, of 78.6% at end-2017 will take longer to reduce below 70%, a level that is commensurate with a 'B' rating level for large Chinese homebuilders. The high leverage is partly offset by the sharp improvement of the finance business segment's EBITDA to CNY3.1 billion in 2017 from CNY1.1 billion in 2016 supports Oceanwide's ratings. This improvement has strengthened its non-development property EBITDA/interest paid ratio to 0.4x in 2017 from 0.2x in 2016, which provides some buffer in servicing its debt. Peers that have similar levels of interest cover and reasonable leverage levels are rated 'B' or above. KEY RATING DRIVERS Leverage Stays High: Oceanwide has one of the highest leverages among 'B' rating category Chinese homebuilder peers. Oceanwide's weak credit metrics are due to its investments in its FI subsidiaries and its larger exposure to commercial development properties that have a longer cash collection cycle. Fitch believes that Oceanwide's leverage will continue to rise over the next two years without equity funding because of continued development expenditure for the 2.5 million sq m gross floor area of projects under construction, as well as its high interest and tax burden that will amount to CNY12 billion-15 billion a year in the next three years. Extremely Slow Sales; but Bottoming: Fitch expects Oceanwide's sales efficiency, as measured by contracted sales to net debt excluding FIs, to remain below 0.25x for at least another two years, longer than previously expected. The stringent home purchase policies and housing price controls in its key markets of Beijing and Shanghai have delayed sales in these cities. As a result, Oceanwide's property sales more than halved in 2017 from 2016 and it estimates its contracted sales to net debt ratio declined to 0.05x in 2017 from 0.16x in 2016. Fitch believes Oceanwide's sales bottomed in 2017, albeit at a very low level of under CNY6 billion. Sales in 2018 will be supported by its projects in Shanghai, where it has already obtained sales permits. Its US projects will start contributing to sales in 2019. Funding Pressure High: Oceanwide's available cash at end-2017 was CNY9.6 billion, including CNY4.6 billion of cash in its FI subsidiaries. This is inadequate to cover its large short-term debt balance of CNY47.6 billion and Fitch's expectation of negative free cash flow of CNY9 billion in 2018. The company's liquidity position did not improve at end-1Q18, when total cash was at CNY18.1 billion, down from CNY19.3 billion at end-2017, while short-term debt increased to CNY51 billion. Growing Finance Businesses: Oceanwide's FI segment EBITDA increased to CNY3.1 billion in 2017 from CNY1.1 billion in 2016, which provides growing non-property development cash flow to service its rising debt. The low net debt of its FI segment of CNY1 billion at end-2017, unchanged from 2016, means Oceanwide can comfortably upstream dividends from these businesses without impairing their capital base. This is demonstrated by the increase in shareholders' equity of the FI subsidiaries attributable to Oceanwide to CNY25 billion at end-2017 from CNY23.4 billion a year earlier. Asset Base Supports Funding Access: Fitch believes Oceanwide still has borrowing capacity, with its unencumbered assets of CNY49 billion at end-2017. Oceanwide has pledged property and financial assets of CNY76.6 billion as well as shares of its FI subsidiaries for CNY60 billion in secured debt. The company had CNY35 billion of development properties that remained unencumbered at end-2017; and Oceanwide is likely to be able to use them to secure more borrowings because of their attractive valuation. DERIVATION SUMMARY Oceanwide's rating is severely constrained by its poor contracted sales/net debt excluding FIs of below 0.25x, which is very weak when compared with contracted sales/gross debt of all rated homebuilders. Its weak cash generation had resulted in consistently rising leverage, which reached 78.6% in 2017 and made it the highest leveraged among 'B' category peers. Oceanwide's poor credit metrics are partly due to larger exposure to commercial development properties that have a longer cash collection cycle. Its slow-churn business model, however, means that its land bank is much older and substantially undervalued compared with those of fast-churn homebuilders. This also means that Oceanwide has one of the highest EBITDA margin among the 21 Fitch-rated peers in the 'B' rating category. Its margin is only exceeded by that of LVGEM (China) Real Estate Investment Company Limited (B/Stable) and China South City Holdings Limited (B/Stable). Oceanwide also has one of the strongest business profiles among 'B' category peers due to its diversification into a wide array of finance businesses. Its non-property development EBITDA covers 0.4x of interest expenses, which supports its debt servicing. Peers that have similar levels of interest coverage are rated at 'B' or above. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Limited new land acquisitions at 0.5x of contracted sales' gross floor area - Contracted sales of CNY17 billion in 2018 and increases of 25% per year thereafter - Property development EBITDA margin of 25%-40% in 2018-2020 - Stable performance of finance segment RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Net debt/adjusted inventory including AFS & FI investment sustained below 70% (78.6% at end-2017) - Consolidated EBITDA margin sustained above 35% (27% in 2017) Developments That May, Individually or Collectively, Lead to Negative Rating Action - Further weakening of Oceanwide's liquidity position - Non-property development EBITDA/interest paid sustained below 0.25x (0.4x in 2017) LIQUIDITY Refinancing Plan In Place: Oceanwide's funding channels include securing new banking facilities, tapping commercial mortgaged- backed securitisation, and issuing domestic bonds and medium-term notes, as well as through seeking strategic partners. The company estimated that these channels may bring additional liquidity of over CNY40 billion for the rest of this year. Furthermore, CNY25 billion of its short-term debts at end-2017 were secured borrowings and Oceanwide can negotiate to roll over such borrowings if the funding cost is competitive. Fitch believes Oceanwide had unencumbered assets of CNY49 billion that can be collaterised to raise additional secured borrowings. FULL LIST OF RATING ACTIONS Oceanwide Holdings Co. Ltd. - Long-Term IDR downgraded to 'B-' from 'B'; Outlook Stable - Senior unsecured debt rating downgraded to 'B-' from 'B', with Recovery Rating of 'RR4' Oceanwide Holdings International 2015 Co., Limited - USD400 million 9.625% senior notes due 2020 downgraded to 'B-' from 'B', with Recovery Rating of 'RR4' - USD200 million floating notes due 2020 downgraded to 'B-' from 'B', with Recovery Rating of 'RR4' Oceanwide Holdings International 2017 Co., Limited - USD300 million 8.5% senior notes due 2019 downgraded to 'B-' from 'B', with Recovery Rating of 'RR4' - USD400 million 7.75% senior notes due 2020 downgraded to 'B-' from 'B', with Recovery Rating of 'RR4' TIMES CHINA: Fitch Gives Final BB- Rating on $450MM Sr. Notes ------------------------------------------------------------- Fitch Ratings has assigned homebuilder Times China Holdings Limited's (BB-/Stable) USD450 million 7.85% senior notes due 2021 a final rating of 'BB-'. The notes are rated at the same level as Times China's senior unsecured rating because they constitute its direct and senior unsecured obligations. The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on May 28, 2018. Times China's rating is supported by its significant increase in scale without compromising its financial profile. The company has grown quickly within Guangdong province, while keeping its leverage below 40% and EBITDA margin around 20%. Fitch believes Times China's strong sales and healthy financial profile are commensurate with those of its 'BB-' rated peers. Fitch also expects Times China to remain under pressure to expand its land bank in its core market of Guangdong to support its growth. KEY RATING DRIVERS Strong Sales to be Sustained: Times China aims to achieve CNY55 billion in contracted sales in 2018, following a 42% increase to CNY41.6 billion in 2017, with an average selling price (ASP) of CNY14,750 per square meter (sq m). Contracted sales in January- April 2018 increased 66% yoy to CNY16 billion, driven by a 33% increase in gross floor area sold and a 25% increase in ASP. Times China aims to reach CNY100 billion in annual sales in the medium term, driving Fitch's expectation that Times China's sales will continue to grow rapidly over the next three years. Rising Contribution from Joint Ventures: Times China is increasingly using joint-venture (JV) structures to boost its scale. Fitch estimates that Times China's attributable sales fell to below 80% of total reported sales in 2017 and the ratio is likely to remain at 75%-80%. Fitch will consider proportionate consolidation of Times China's JVs and associates if the attributable percentage falls below Fitch's expectation. Redevelopment Alleviates Land Acquisition Pressure: Fitch estimates that Times China's existing saleable resources are only sufficient to support the company's sales in the next three years, placing significant pressure on the company to expand its land bank. However, Fitch believes Times China's efforts in pursuing redevelopment projects can relieve some pressure on the company to compete for more costly sites in land auctions. The company has a competitive advantage in obtaining low-cost urban redevelopment projects, particularly in Guangzhou and Foshan, which will help it to control land costs and ease pressure to acquire land. Times China had 16.8 million sq m of land at end-2017, with 33% of the area in its core markets of Guangzhou, Foshan and Zhuhai. Another one-third was in Qingyuan, a tier 3 city in Guangdong. Times China also reduced its new land cost to CNY3,393/sq m in 2017, from CNY5,367/sq m, by increasing its land bank in some tier 3 cities. It secured (acquired or signed preliminary agreements) 68 projects totalling 19 million sq m of redevelopment land in 2017, of which 5.6 million sq m is likely to be converted to available-for-sale land in 2018-2020. Times China did not convert any of the land in 2017, but management said it plans to convert 1.5 million sq m in 2018, or 30% of all land acquired in 2017. Stable Leverage: Times China's leverage, measured by net debt/adjusted inventory, was controlled at 37.6% as at end-2017, after taking into consideration adjustments from JV and associate investments as well as the amount due to and from non-controlling interest shareholders. Times China has been able to keep leverage below 40% during its expansion; and while Fitch expects the metric to increase as the company continues to expand, it should stay below 45%. Lower Cash Collection: Times China collected around CNY31.3 billion of cash from sales in 2017, or around 75% of its reported contracted sales, lower than its 85% cash collection rate before 2016. Fitch believes this is due to a tight onshore credit environment starting 2H17. Tighter credit may result in buyers experiencing delays in obtaining mortgage loans, which has slowed cash collection for the market. Fitch believes that under these credit conditions, Times China will face more challenges in balancing financial discipline and fast growth to maintain its healthy financial profile. Concentration in Guangdong Province: Times China is a regional property developer focused on Guangdong province in southern China. Guangzhou, Foshan and Zhuhai together accounted for more than 75% of total contracted sales in 2017 and more than 85% before that. Fitch expects Times China to focus on expanding within Guangdong province and that it is unlikely to expand into other provinces in the near term. DERIVATION SUMMARY Times China enjoyed a CAGR of over 45% in 2012-2017 to reach reported sales of over CNY40 billion, which is similar to 'BB' category peers, such as Yuzhou Properties Company Limited's (BB- /Stable) CNY40.3 billion and China Aoyuan Property Group Limited's (BB-/Stable) CNY45.6 billion, but larger than lower-rated companies, such as Modern Land (China) Co., Limited's (B+/Negative) CNY22 billion. Times China has managed to maintain leverage below 40% while significantly boosting scale and increasing saleable resources, which is also in line with similarly rated companies. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Attributable contracted sales sustained above CNY40 billion in the next three years - Gross profit margin (including capitalised interests) maintained at 20%-25% over 2018-2019 - Attributable land premium at around 55% of sale proceeds in the next three years RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Annual attributable contracted sales sustained above CNY50 billion - Net debt/adjusted inventory sustained below 35% - Contracted sales/total debt sustained above 1.2x (2017: 1.2x) Developments that May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory above 45% for a sustained period - EBITDA margin below 20% (2017: 22.6%) for a sustained period - Land bank insufficient for three years of development LIQUIDITY Sufficient Liquidity: Times China had cash and cash equivalents of CNY17 billion (including restricted cash) as of end-2017, compared with CNY6 billion in short-term debt. The company also issued USD500 million of 6.25% notes due 2021 in January 2018 to redeem USD280 million of 11.45% notes due 2020 to lower its average funding cost. Times China's average funding cost fell to 7.6% in 2017, from 9.6% in 2015. TIMES CHINA: Fitch Rates Proposed USD Sr. Notes 'BB-(EXP)' ---------------------------------------------------------- Fitch Ratings has assigned homebuilder Times China Holdings Limited's (BB-/Stable) proposed US dollar senior notes a 'BB- (EXP)' expected rating. The notes are rated at the same level as Times China's senior unsecured rating because they constitute its direct and senior unsecured obligations. The final rating is subject to the receipt of final documentation conforming to information already received. Times China's rating is supported by its significant increase in scale without compromising its financial profile. The company has grown quickly within Guangdong province while keeping its leverage below 40% and EBITDA margin around 20%. Fitch believes Times China's strong sales and healthy financial profile are commensurate with those of its 'BB-' rated peers. Fitch also expects Times China to remain under pressure to expand its land bank in its core market of Guangdong to support its growth. KEY RATING DRIVERS Strong Sales to be Sustained: Times China aims to achieve CNY55 billion in contracted sales in 2018, following a 42% increase to CNY41.6 billion in 2017, with an average selling price (ASP) of CNY14,750 per square meter (sq m). Contracted sales in January- April 2018 increased 66% yoy to CNY16 billion, driven by a 33% increase in gross floor area sold and a 25% increase in ASP. Times China aims to reach CNY100 billion in annual sales in the medium term, driving Fitch's expectation that Times China's sales will continue to grow rapidly over the next three years. Rising Contribution from Joint Ventures: Times China is increasingly using joint-venture (JV) structures to boost its scale. Fitch estimates that Times China's attributable sales fell to below 80% of total reported sales in 2017 and the ratio is likely to remain at 75%-80%. Fitch will consider proportionate consolidation of Times China's JVs and associates if the attributable percentage falls below its expectation. Redevelopment Alleviates Land Acquisition Pressure: Fitch estimates that Times China's existing saleable resources are only sufficient to support the company's sales in the next three years, placing significant pressure on the company to expand its land bank. However, Fitch believes Times China's efforts in pursuing redevelopment projects can relieve some pressure on the company to compete for more costly sites in land auctions. The company has a competitive advantage in obtaining low-cost urban redevelopment projects particularly in Guangzhou and Foshan, which will help it to control land cost and ease pressure to acquire land. Times China had 16.8 million sq m of land at end-2017, with 33% of the area in its core markets of Guangzhou, Foshan and Zhuhai. Another one-third was in Qingyuan, a Tier 3 city in Guangdong. Times China also reduced its new land cost to CNY3,393/sq m in 2017, from CNY5,367/sq m, mainly by increasing its land bank in some Tier 3 cities. It secured (acquired or signed preliminary agreements) 68 projects totalling 19 million sq m of redevelopment land at end-2017, of which 5.6 million sq m is likely to be converted to available-for-sale land in 2018-2020. Times China did not convert any of the land in 2017, but management said it plans to convert 1.5 million sq m in 2018, or 30% of all land acquired in 2017. Stable Leverage: Times China's leverage, measured by net debt/adjusted inventory, was controlled at 37.6% at end-2017, after taking into consideration the adjustments from JV and associate investments as well as the amount due to and from non- controlling interest shareholders. Times China has been able to keep leverage below 40% during expansion; and while Fitch expects the metric to increase as the company continues to expand, it should stay below 45%. Lower Cash Collection: Times China collected around CNY31.3 billion of cash from sales in 2017, or around 75% of its reported contracted sales, lower than its 85% cash collection rate before 2016. Fitch believes this is mainly due to a tight onshore credit environment starting 2H17. Tighter credit may result in buyers experiencing delays in obtaining mortgage loans, which has slowed cash collection for the market. Fitch believes that under the current credit conditions Times China will face more challenges in balancing financial discipline and fast growth to maintain its current healthy financial profile. Concentration in Guangdong Province: Times China is a regional property developer focused on Guangdong province in southern China. Guangzhou, Foshan and Zhuhai together accounted for more than 75% of total contracted sales in 2017 and more than 85% before that. Fitch expects Times China to focus on expanding within Guangdong province and that it is unlikely to expand into other provinces in the near term. DERIVATION SUMMARY Times China enjoyed a CAGR of over 45% in 2012-2017 to reach reported sales of over CNY40 billion, which is similar to 'BB' category peers such as Yuzhou Properties Company Limited's (BB- /Stable) CNY40.3 billion and China Aoyuan Property Group Limited's (BB-/Stable) CNY45.6 billion, but larger than lower-rated companies such as Modern Land (China) Co., Limited's (B+/Negative) CNY22 billion. Times China has managed to maintain leverage below 40% while significantly boosting scale and increasing saleable resources, which is also in line with similarly rated companies. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Attributable contracted sales sustained above CNY40 billion in the next three years - Gross profit margin (including capitalised interests) maintained at 20%-25% over 2018-2019 - Attributable land premium at around 55% of sales proceeds in the next three years RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Annual attributable contracted sales sustained above CNY50 billion - Net debt/adjusted inventory sustained below 35% - Contracted sales/total debt sustained above 1.2x (2017: 1.2x) Developments That May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory sustained above 45% - EBITDA margin sustained below 20% (2017: 22.6%) - Land bank insufficient for three years of development LIQUIDITY Sufficient Liquidity: Times China had cash and cash equivalents of CNY17.2 billion (including restricted cash) as of end-2017, compared with CNY6 billion in short-term debt. The company also issued USD500 million of 6.25% notes due 2021 in January 2018 to redeem USD280 million of 11.45% notes due 2020 to lower its average funding cost. Times China's average funding cost fell to 7.6% in 2017 from 9.64% in 2015. TIMES CHINA: Moody's Assigns B1 Sr. Sec. Rating to Proposed Notes ----------------------------------------------------------------- Moody's Investors Service has assigned a B1 senior unsecured rating to the USD notes proposed by Times China Holdings Limited (Ba3 stable). The rating outlook is stable. The proceeds from the proposed issuance will be used mainly to refinance existing debt and for general working capital purposes. RATINGS RATIONALE "The proposed notes will lengthen Times China's debt maturity profile and will not materially affect the company's financial profile, because a significant amount of the proceeds will be used for refinancing," says Danny Chan, a Moody's Analyst, and also the Lead Analyst for Times China. The issuance is in line with Moody's expectations for the company's funding plans for this year. Moody's expects Times China will record revenue/adjusted debt of 75% and EBIT/interest of 3.4x in 2018, which will in turn support its Ba3 corporate family rating (CFR). Moody's expects Times China's presales and revenues will likely grow by 26% and 31% respectively in 2018, and that the company will maintain gross margins of around 27%. Supported by strong presales, the company's reported cash balance of RMB17.2 billion at the end of 2017 well covered its debt of RMB6.0 billion maturing over the next 12 months. Times China's Ba3 CFR continues to reflect its growing operating scale, established brand, and good track record of property development in Guangdong Province. The rating also takes into account the company's stable profit margins and strong liquidity profile. However, the company's Ba3 CFR is constrained by its (1) geographic concentration in Guangdong Province; and (2) exposure to the financing and execution risks associated with its fast growth business strategy. The stable rating outlook reflects Moody's expectation that the company will maintain growth in its presales, and disciplined land acquisitions and debt management to achieve a financial profile consistent with its Ba3 corporate family rating. The senior unsecured rating on the proposed notes is one notch lower than the company's CFR because of the risk of structural and legal subordination. This risk reflects Moody's expectation that the majority of claims will be at the level of the operating subsidiaries, and will have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination, reducing the expected recovery rate for claims at the holding company. Upward rating pressure could emerge if Times China shows stable growth in sales, an increased operating scale, and maintains a strong liquidity position. Financial ratios indicative of upward rating pressure include cash/short-term debt of 1.5x, revenue/adjusted debt above 90% and adjusted EBIT/interest above 4.0x on a sustained basis. Conversely, downward rating pressure could emerge if Times China shows declining sales, aggressive land or project acquisitions, increased debt leverage or a weakening liquidity position. Metrics indicative of downward rating pressure include: (1) cash/short-term debt below 1.0x, (2) EBIT/interest coverage below 2.5x, or (3) revenue/adjusted debt below 65% on a sustained basis. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Times China Holdings Limited is a property developer based in Guangdong Province, focused on meeting end-user demand for mass- market housing. At the end of December 2017, it had 79 property projects across eight cities in Guangdong Province and Changsha city in Hunan Province. Its land bank totaled around 16.8 million square meters as of the same date. ========= I N D I A ========= AAKARSHIT ICE: CRISIL Moves B+ Rating to Non-Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Aakarshit Ice and Cold Storage Private Limited (Aakarshit) for obtaining information through letters and emails dated April 30, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 6.5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 3.5 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 Aakarshit Ice and Cold Storage Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Aakarshit Ice and Cold Storage 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 Aakarshit Ice and Cold Storage Private Limited to CRISIL B+/Stable Issuer not cooperating' Incorporated in 1997 and promoted by Mr. Mangal Sain Madaan and family, Aakarshit is engaged in the cold storage business and also trades in agro commodities such as potato, carrot, chana, and jaggery. ABAJ ELECTRONICS: CRISIL Moves B- Rating to Non-Cooperating Cat. ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Abaj Electronics Private Limited (AEPL) for obtaining information through letters and emails dated April 20, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.5 CRISIL B-/Stable (Issuer Not Cooperating; Rating Migrated) Inland/Import 3.4 CRISIL A4 (Issuer Not Letter of Credit Cooperating; Rating Migrated) Proposed Long Term 4.1 CRISIL B-/Stable (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 Abaj Electronics Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Abaj Electronics 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 ratings on bank facilities of Abaj Electronics Private Limited to CRISIL B- /Stable/CRISIL A4 Issuer not cooperating'. AEPL, incorporated in 2010, sells consumer durable products such as TV sets, washing machines, and sound bar systems under its Abaj brand. Based in Ahmedabad, Gujarat, the company is promoted by Mr Nirav Patel, Mr Manish Patel, Mr Dharmendra Patel, and Mr Sunil Patel. ACCORD BUILDCON: CRISIL Withdraws D Rating on INR100cr NCD ---------------------------------------------------------- CRISIL Ratings has been following up with Accord Buildcon Private Limited (ABPL; a part of the Supertech group) for getting information through letters and emails, dated January 17, 2017, March 6, 2017, and April 6, 2017, apart from various telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR cr) Ratings ---------- -------- ------- Non Convertible 100 CRISIL D (Issuer Not Debentures Cooperating; Rating withdrawn) 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 CRISIL has withdrawn its rating on the Non-Convertible Debentures of ABPL at the company's request as the entire debt has been paid off. The rating action is in line with CRISIL's policy on withdrawal of ratings. Analytical Approach For arriving at its rating, CRISIL has combined the business and financial risk profiles of Supertech Ltd and its subsidiaries and associates: Supertech Realtors Pvt Ltd, Dazzle IT Solutions Pvt Ltd, Supertech Infrastructure Pvt Ltd, Surprise Suppliers Pvt Ltd, Supertech Hotels Pvt Ltd, Supertech Township Project Ltd, Supertech Precast Technologies Pvt Ltd, Revital Realtors Pvt Ltd, TBPL, Supertech Estate Pvt Ltd, Sarv Realtors Pvt Ltd, Doon Valley Technopolis Pvt Ltd, and ABPL. This is because all these entities, collectively referred to as the Supertech group, have business and financial linkages, and are under a common management. Supertech Ltd, incorporated in 1995 and promoted by Mr R K Arora, undertakes real estate projects, mainly in the residential segment. The group started operations with the construction of Supertech Estate in Vaishali, Uttar Pradesh (UP), in 2000, and Supertech Residency in Kaushambi, UP, in 2003. The group developed three shopping malls, Shopprix Mall, in Noida, Kaushambi, and Vaishali in 2004. It has over 20 active real estate projects, most of them in Noida and Greater Noida. It is now diversifying into Gurgaon. ADITYA INVESTMENT: CRISIL Lowers Rating on INR15MM Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded its rating on bank facilities of Aditya Investment and Exim Trade Company Private Limited (AIETPL; a part of Aditya Group) to 'CRISIL D' from 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Packing 15 CRISIL D (Downgraded from Credit 'CRISIL A4') The downgrade reflects instances of bill overdue for more than 30 days. The same is on account of delay in realization of receivables from the group's customers resulting in stretched liquidity. The ratings also factors below-average financial risk profile marked by high total outside liabilities to total net worth (TOLTNW) ratio and large working capital requirements. These rating weaknesses are partially offset by extensive experience of promoters in trading business. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AIETPL and its group companies Aaryan Trade and Exim LLP (ATEL), Magdha Creative Merchant LLP (MCML), Vaishnavi Exports and Import Company (VEIC), Vedant Trade Impex Private Limited (VTIPL), Veeaar Fabware Private Limited (VFPL) and Vihaan Infin And Exim Private Limited (VIEPL), collectively referred to as the Aditya group. This is because all these entities, together referred to as the Aditya group, are in the same line of business and under a common management, and have operational synergies. Key Rating Drivers & Detailed Description Weakness * Bills overdue for more than 30 days: Stretched liquidity caused by delay in realization of receivables from the group's customers have led to bills being overdue for more than 30 days * Below-average financial risk profile: Owing to a stretched working capital cycle, the group's total outside liabilities to total net worth ratio remained high at around 13 times as on March, 2017. With the expected improvement in working capital management, the TOLTNW ratio is expected to improve however, will remain high over the medium term. The debt protection metrics remains moderate marked by moderate interest coverage ratio of 2.2 times in fiscal 2017. * Large working capital requirements: The group's operations are working capital intensive as indicated by high gross current asset of 228 days as on March, 2017. This is primarily attributable to the high credit extended to the customer. However, against this, the group is able to get credit at the similar level. CRISIL believes that the group's working capital management is expected to improve over the medium term on account of lower reliance on creditors to fund the working capital requirements. The improvement of working capital management will remain key rating sensitivy factor over the medium term. Strength * Extensive experience of promoters: The group benefits from the extensive experience of promoters of over 3 decades in the trading business. Over the years, the management has established healthy relationship with the customers thus, resulting in repeated orders. Aditya Group was established by Mr Ramesh Singh in 2008. The group is engaged into exports of food grains, coconuts, confiseries (Stationery, Biscuits and Chocolates), Textiles products (RMG, Shirting & Suiting and fabrics). The group is based out of Mumbai, Maharashtra. AMBIENCE CONSTRUCTIONS: Ind-Ra Moves BB Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Ambience Constructions India Limited's (ACIL) 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: -- INR50 mil. Fund-based working capital facilities migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR120 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 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 1996, ACIL undertakes civil construction works related to hospital, university, military campus, schools, among others. ANACON PROCESS: CRISIL Assigns B+ Rating to INR4.50MM Book Debt --------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Anacon Process Control Private Limited (APCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 4.55 CRISIL A4 (Assigned) Bank Guarantee 3.95 CRISIL A4 (Assigned) Cash Credit-Book Debt 4.50 CRISIL B+/Stable (Assigned) The rating reflects the company's below average financial risk profile and its working capital intensive nature of operations. These rating weaknesses are partially offset by promoters' experience in the industry. Key Rating Drivers & Detailed Description Weakness * Below average financial risk profile: Financial risk profile is below average, with high capital structure ratio estimated at 1.27 times as on March 31, 2017, interest coverage and NCATD ratios were at 1.07 times and 0.03 time, respectively, in fiscal 2017. * Working capital intensive nature of operations: The company operations are working capital intensive marked by gross current assets estimated at 534 days which is on account of high inventory (work in progress) of 405 days as on March 31st 2017. Strengths * Extensive experience of promoters: Benefits from the promoters' experience (around two decades) and strong relations with customers and suppliers should continue to support the business. Outlook: Stable CRISIL believes that APCPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the company improves its profitability, while achieving a substantial increase in its scale of operations and a better working capital cycle. Conversely, the outlook may be revised to 'Negative' if APCPL's revenue growth slows down, or its capital structure or debt protection metrics deteriorate, leading to weakening of its financial risk profile. APCPL was incorporated in the year 1994 by Mr. Ajay Sharma. The company is engaged in providing safety solutions (fire and gas detection) and construction (electrical and instrumentation) which ranges from erection, testing, commissioning and maintenance of fire and gas detection systems in India. ANNPURNA RICE: CARE Assigns B+ Rating to INR7cr LT Loan ------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Annpurna Rice Mill (ARM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 7.00 CARE B+; Stable Assigned Detailed Rational and Key Rating Drivers The rating assigned to the bank facilities of ARM is primarily constrained by modest scale of operations with low proprietor's capital base, low profitability margins, leveraged capital structure and weak coverage indicators. The rating is further constrained by business susceptible to the vagaries of nature, and fragmented and competitive nature of the industry. The rating, however, draws comfort from the experienced proprietor, favorable manufacturing location and moderate operating cycle. Going forward, ability of the firm to profitably increase its scale of operations while improvement in capital structure shall be the key rating sensitivity. Key description and key rating drivers Key rating weakness Modest scale of operations with low proprietor's capital base: The firm's scale of operations has remained modest marked by total operating income (TOI) and gross cash accruals of INR60.22 crore and INR0.60 crore respectively in FY17 (refers to the period April 1 to March 31). Further, the proprietor's capital base stood low at INR2.08 crore as on March 31, 2017. Modest scale of operations limits the firm's financial flexibility in times of stress and deprives it from scale benefits. The firm has achieved TOI of ~INR55.58 crore during FY18 (refers to the period April 1 to March 31, based on provisional results). Low profitability margins, leveraged capital structure and weak coverage indicators: The PBILDT margin of the firm stood low at 2.09% in FY17 (PY: 1.30%) on account of low value addition and its presence in highly fragmented and competitive nature of industry. Moreover, high depreciation and financial cost restricted the PAT margin of the firm at 0.89% in FY17 (PY: 0.70%). The capital structure of the firm marked by overall gearing ratio stood leveraged as on last three balance sheet March 31, '15-'17 mainly on account of low proprietor's capital base coupled with high dependence on external borrowings for managing working capital requirements of the business. Overall gearing stood at 3.22x as on March 31, 2017 as against 3.73x as on March 31, 2016 on account of accretion of profits into reserves. The coverage indicator of the firm stood weak marked by interest coverage ratio and total debt to gross cash accruals at 1.90x and 11.22x for FY17. Business susceptible to the vagaries of nature: Paddy is the major raw material and the peak paddy procurement season is during November to January during which the firm builds up raw material inventory to cater to the milling and processing of rice. The monsoon has a huge bearing on crop availability which determines the prevailing paddy prices. Fragmented and competitive nature of the industry: The commodity nature of the product makes the industry highly fragmented, with numerous players operating in the unorganized sector with very less product differentiation. Furthermore, the concentration of rice millers around the paddy growing regions makes the business intensely competitive. Key Rating Strengths Experienced proprietor in processing of rice: ARM is currently being managed by Mr. Bhuneshwer Tiwari. He is a graduate by qualification and has an overall experience of around one and half decade in processing of rice through his association with this entity and through his other associate concerns namely M/s Annapurna Industries (established in 2012) and Annapurna Agro Industries LLP (established in 2015). Favorable manufacturing location: ARM is mainly engaged in processing of rice. The main raw material (Paddy) is procured from local grain markets, located in Uttar Pradesh. The firm's processing facility is situated in Mirzapur, Uttar Pradesh; which is a good producer of paddy. Its presence in the region gives additional advantage over the competitors in terms of easy availability of the raw material as well as favorable pricing terms. ARM owing to its location is in a position to cut on the freight component of incoming raw materials. Moderate operating cycle: The operating cycle of the firm stood moderate at 45 days for FY17. The firm maintains adequate inventory of paddy to cater to the milling and processing of rice, resulting in average inventory period of 41 days in FY17. Furthermore, the firm offers reasonable credit period to its customers due to competitive nature of industry which resulted in average collection period of around 88 days for FY17. The company received credit period of around three months from traders and commission agents' resultant into average creditors' period of 84 days for FY17. Mirzapur, Uttar Pradesh based Annapurna Rice Mill (ARM) was established in 2004. The firm is currently being managed by Mr. Bhuneshwer Tiwari. ARM is engaged in processing of paddy. The firm has an an installed capacity of 40,000 tonnes per annum (TPA) of paddy as on March 31, 2018 at its unit located at Mirzapur, Uttar Pradesh. Also, the firm is engaged in trading of wheat (constitutes ~5% of net sales in FY17). The firm procures the raw material (paddy) from local grain markets located in Uttar Pradesh through commission agents and sells its product to wholesalers located in Rajasthan, Delhi and Uttar Pradesh. M/s Annapurna Industries (established in 2012) and Annapurna Agro Industries LLP (established in 2015) are associate concerns of ARM engaged in processing of paddy. AQUARIOUS MARKETING: Ind-Ra Affirms BB LT Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Aquarious Marketing Private Limited's (AMPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating action is: -- INR100 mil. (increased from INR70 mil.) Fund-based working capital limits affirmed with IND BB/Stable/IND A4+ rating. KEY RATING DRIVERS The affirmation reflects AMPL's continued small scale of operations and modest credit metrics. The continued modest credit metrics were due to AMPL's presence in a highly competitive and fragmented tea industry. The company's revenue increased to INR526.7 million in FY18 (unaudited financials) from INR454.5 million in FY17, driven by an increase in work orders from existing clients. Its interest coverage improved to 4.2x in FY18 from 3.1x in FY17, driven by an increase in EBITDA margin to 4.1% from 3.5% due to a fall in raw material cost on account of better management of raw materials. Moreover, its leverage deteriorated to 3.49x from 3.05x primarily due to an increase in the debt during the period. The ratings, however, are supported by a comfortable liquidity, indicated by an average 72.0% fund-based working capital limit utilization for the 12 months ended April 2018. Moreover, they continue to be supported by the promoters' experience of three decades in the tea industry. RATING SENSITIVITIES Negative: A fall in the EBITDA margin leading to deterioration in the interest coverage on a sustained basis will be negative for the ratings. Positive: A significant rise in the revenue, along with an improvement in the interest coverage, on a sustained basis will be positive for the ratings. COMPANY PROFILE AMPL is engaged in the export of orthodox and crush, tear and curl kinds of tea. AMPL is managed by Mr. Dikshit Arya in Kolkata and Mr. Dipak Arya in Indore. ARYA FIN-TRADE: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Arya Fin-trade Services (India) Private Limited's (AFPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is: -- INR220 mil. (increased from INR70 mil.) Non-fund-based facilities affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects AFPL's continued small scale of operations, as 20.0%-25.0% of the company's client base of about 130 is active. Its revenue declined to INR67 million in FY18 (provisional financials) from INR74 million in FY17 due to a reduction in proprietary trading income. The ratings also reflect the company's concentrated client profile and revenue base. Proprietary trading contributed 52.0% to the revenue in FY18 (FY17: 58.0%). Meanwhile, the top 20 clients contributed about 98.9.0% to the turnover in FY18 (FY17: 91.0%). Proprietary trading contributed about 38.9% to the total turnover in FY18 (FY17: 7.85%). Moreover, as of March 2018, AFPL's total turnover, as a percentage of total traded volumes, accounted for 0.005% of the cash segment of the Bombay Stock Exchange, 0.037% of the cash segment of the National Stock Exchange, and 0.029% of the futures and options segment of the National Stock Exchange. The ratings further reflect AFPL's exposure to volatility in capital markets. The proprietary trading revenue, which constituted 52% of the revenue in FY18, is heavily dependent on movements in capital markets, which, in turn, are driven by economic, political, social and sentimental factors. The ratings, however, are supported by AFPL's continued comfortable interest coverage, which was 2.06x in FY18 (FY17: 2.30x). Its operating margin was about 40.0% in FY18 (FY17: 20.0%). The rise in the margin was largely due to a reduction in consultancy fees, which is dependent on returns generated on the proprietary trading portfolio. As the company majorly utilizes the non-fund-based facilities, it had a low gearing of about 1.36x in FY18 (FY17: 1.19x). It is required to provide margins to the stock exchanges. The directors have, in the past, provided zero-interest loans to AFPL. Ind-Ra expects the directors to continue to provide liquidity support, if required. The ratings continue to be supported by AFPL's promoters' more than two decades of experience in the broking and trading business. RATING SENSITIVITIES Negative: A decline in the operating margin and the scale of operations, and a reduction in the net worth resulting in deterioration in the interest coverage and gearing levels could lead to a negative rating action. Positive: Consistent and significant improvement in the scale of operations and the brokerage income, lower dependence on the proprietary trading income and an improvement in the operating margin and the interest coverage while sustaining existing levels of the gearing could lead to positive rating action. COMPANY PROFILE AFPL is engaged in the provision of broking services and trading of derivatives and equity on the Bombay Stock Exchange (cash and currency derivatives) and National Stock Exchange (cash, futures and options and currency derivatives). ASHA CONCAST: CRISIL Moves B+ Rating to Non-Cooperating Category ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Asha Concast Private Limited (ACPL; part of the Asha group) for obtaining information through letters and emails dated April 20, 2018, May 10, 2018 and May 15, 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) Letter of Credit 1.1 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 2.85 CRISIL B+/Stable (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 Asha Concast Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Asha Concast 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 ratings on bank facilities of Asha Concast Private Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of ACPL and Asha Ispat Pvt Ltd (AIPL). This is because both the companies, together referred to as the Asha group, have common management and significant operational linkages. ACPL manufactures and supplies steel ingots to AIPL to manufacture thermo-mechanically-treated (TMT) bars. AIPL was incorporated in 1996 and ACPL in 2009 and are promoted by Siliguri-based Agarwal family. Mr. Rajesh Agarwal and Mr. Roshan Agarwal are directors in AIPL, and Ms. Rajani Agarwal and Ms. Manisha Agarwal are directors in ACPL. AIPL manufactures steel ingots and TMT bars whereas ACPL manufactures steel ingots primarily for AIPL. Both the entities also trade in iron and steel products. ASHA ISPAT: CRISIL Migrates B+ Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Asha Ispat Private Limited (AIPL; part of the Asha group) for obtaining information through letters and emails dated, April 20, 2018, May 11, 2018, and May 16, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .75 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 4.50 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Short .48 CRISIL A4 (Issuer Not Term Bank Loan Cooperating; Rating Migrated) Facility Standby Line 0.20 CRISIL A4 (Issuer Not of 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 Asha Ispat Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Asha Ispat 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 ratings on bank facilities of Asha Ispat Private Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AIPL and Asha Concast Pvt Ltd (ACPL). This is because both the companies, together referred to as the Asha group, have common management and significant operational linkages. ACPL manufactures and supplies steel ingots to AIPL to manufacture thermo-mechanically-treated (TMT) bars. AIPL was incorporated in 1996 and ACPL in 2009 and are promoted by Siliguri-based Agarwal family. Mr. Rajesh Agarwal and Mr. Roshan Agarwal are directors in AIPL, and Ms. Rajani Agarwal and Ms. Manisha Agarwal are directors in ACPL. AIPL manufactures steel ingots and TMT bars whereas ACPL manufactures steel ingots primarily for AIPL. Both the entities also trade in iron and steel products. BHAGIRATH DHANNALAL: CARE Assigns B Rating to INR6.50cr LT Loan --------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Bhagirath Dhannalal (BD), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.50 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of Bhagirath Dhannalal (BD) is primarily constrained on account of modest scale of operations coupled with fluctuating profitability margins, weak solvency position and stressed liquidity position. The rating, further, constrained on account of seasonality associated with agro commodities and presence in the highly fragmented and government regulated industry. The rating, however, favourably takes into account experienced management. The ability of the firm to increase its scale of operations and improvement in solvency position with better working capital management of the firm is the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Modest scale of operations coupled with fluctuating profitability margins: Owing to fluctuation in the demand of the agro commodities, scale of operation of the firm remained fluctuating during past three financial years ended FY17. During FY17, Total Operating Income (TOI) of the firm has marginally improved by 2.80% over FY16 and stood modest at INR23.13 crore. Being present in the industry of agriculture commodities, the profitability of the company is exposed to fluctuation in the prices as well as availability of agriculture commodities. Weak solvency position and stressed liquidity position The capital structure of the stood highly leveraged with an overall gearing of 11.83 times as on March 31, 2017. Further, the debt service coverage indicators of the firm stood weak with total debt to GCA of 45.27 times as on March 31 2017 and interest coverage ratio of 1.18 times in FY17. The business of the firm is working capital intensive in nature with high inventory holding period of 46 days and higher collection period of 69 days in FY17. Further, It has utilized full of its working capital bank borrowings in last twelve month ended February 2018. Seasonality associated with agro commodities and presence in highly fragmented and government regulated industry As the firm is engaged in the business of agriculture commodities, the prices of agriculture commodities remained fluctuating and depend on production yield, demand of the commodities and vagaries of weather. Hence, profitability of the BD is exposed to vulnerability in prices of agriculture commodities. Further, the business of the company is characterized by highly fragmented and competitive in nature as evident by the presence of numerous unorganized and few organized players. The entry barriers in this industry are very low on account of low capital investment and technological requirement. Due to this, the players in the industry do not have any pricing power. Furthermore, the industry is characterized by high degree of government control both in procurement and sales for agriculture commodities. Government of India (GoI) decides the Minimum Support Price (MSP) payable to farmers. Key Rating Strengths Experienced management: Being present in the industry since more than a century, the management and other family members of the firm has established relationship with customers and suppliers. Mr Manak Chand Khandelwal, Proprietor, has experience of around two decade in the industry and he is assisted by his other family members in handling other parts of the business. Furthermore, this is their family business and all the family is engaged in similar line of business. The promoter family also running other firms namely Shri Hari Pulses which is also engaged in the same line of Business. Bhagirath Dhannalal (BD) based out of Indore (Madhya Pradesh) was formed in 1898 as a HUF and further around 20 years ago it was converted into proprietorship concern by Mr. Manak Chand Khandelwal. BD is engaged in the business of processing of Moong Dall, Channa Dall and grading of wheat. It purchases the commodities from local mandi and sells it in Madhya Pradesh, Tamil Nadu, Delhi and Maharashtra under brand name of 'Love Story' and 'Om Brand' through the 40-50 authorised broker. The promoter family also running other firms namely Shri Hari Pulses which is also engaged in the same line of Business. BHOLA NATH: CARE Assigns B+ Rating to INR6.60cr LT Loan ------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Bhola Nath Zaveri Jewellers Private Limited (BZJ), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.60 CARE B+; Stable Assigned Detailed Rational and key rating drivers The rating assigned to the bank facilities of BZJ arise primarily constrained by small and fluctuating scale of operations with low net worth base, low profitability margins, leveraged capital structure and weak coverage indicators. The rating is further constrained by elongated inventory holding period, vulnerability of margins to gold price fluctuations and competition from various organized or unorganized players with unfavorable supply outlook. The rating, however, draws comfort from the experienced promoters and favorable location of its showroom. Going forward, the ability of the company to manage raw material price volatility risk along with improvement in profitability margins and capital structure shall be the key rating sensitivity. Key description and key rating drivers Key rating weakness Small and fluctuating scale of operations with low net worth base: The scale of operations stood small marked by total operating income and gross cash accruals of INR24.93 crore and INR0.24 crore respectively during FY17 (FY refers to the April 1 to March 31). Moreover, the total operating income of the company declined marginally in FY16 then registered growth in FY17. Furthermore, the company's net worth base was relatively small at INR3.38crore as on March 31, 2017. The small scale limits the company's financial flexibility in times of stress and deprives it from scale benefits. The company has achieved total operating income of ~INR22.00 crore in 10MFY18 (refers to the period April 1 to January 31; based on provisional results). Low profitability margins, leveraged capital structure and weak coverage indicators: The profitability margin of the company has remained low for the past three financial year's i.e. FY15-FY17 owing to highly fragmented and competitive nature of business. Further, high interest burden on its bank borrowings also restricts the profitability of the firm. Furthermore, the operating margins are also associated with the designing aspect of the jewellery. Normally designer jewellery fetches normally high margins. PBILDT and PAT margin stood low at 5.78% and 0.38% respectively in FY17. The capital structure of the company stood leveraged on account of high dependence on external borrowing to meet the working capital requirements coupled with low net worth base. As on last balance sheet date of last 3 financial years (FY15-FY17), overall gearing stood at around ~2.45x. Also, the coverage indicators as marked by interest coverage and total debt to GCA stood weak on account of low profitability and high debt levels. Interest coverage and total debt to GCA stood at 1.27x and 31.75x for FY17. Elongated inventory holding period: The operating cycle of the company remained high at 121 days attributable to high inventory holding period of 129 days for FY17. Being a jewelry retailer, it is critical for BZJ to provide a wide range designs to its customers. These results in significant finished goods inventory leading to high working capital intensity of business operations. The company gives a credit period of around 2-3 months to its wholesaler's customers and sells on cash basis to retail customers. Also, the company received similar credit period from its suppliers. The working capital limits remained around 90% utilized for the 12 months ended January 2018. Vulnerability of margins to gold price fluctuations: The prices of gold have experienced high volatility in the past. Therefore, any adverse change in prices of the same is likely to have a significant impact on margins of the players in the G&J industry. Further, the high price gold can also have an adverse impact on the demand for jewellery, thereby exposing the company to risk of decline in sales volume. The risk is more evident now that the prices has registered considerable volatility and could leave the company carrying costly inventory in case of sudden decline in prices. Competition from various organized or unorganized players and unfavorable supply outlook: BZJ operates in the Gems & Jewellery (G&J) industry, which is a fragmented industry with a high level of competition from both the organized and unorganized sector. Further, with presence of various players, the same limits bargaining power which exerts pressure on its margins. Key rating strengths Experienced promoters and long track record of operations: Bholanath Zaveri Jewellers Private Limited (BZJ) was incorporated in 2006 and is currently being managed by Mr. Sushil Kapoor along with Mr. Dhananjay Kapoor and Ms. Charu Kapoor. Mr. Sushil Kapoor is a graduate and had more than 3 decades of experience in the business through this entity and Zaveri Jewellers (ZJL), however, Mr. Dhananjay Kapoor and Ms. Charu Kapoor are post graduates and have 7 years and 5 years of experience respectively. BZJ has considerable track record in this business which has resulted in long term relationships with both suppliers and customers. Favorable location of showroom: BZJ has its showroom located in Karol Bagh (Central Delhi) and the market is known for whole sale trading jewelry business in New Delhi. The store is located in prime area which ensures the higher probability of footfall in its showroom, thereby, ensuring a good customer base for the company. Delhi-based Bholanath Zaveri Jewellers Private Limited (BZJ) (CIN- U36911DL2006PTC145029) was incorporated in 2006. The company has succeeded an erstwhile partnership firm Zaveri Jewellers. The company is currently being managed by Mr. Sushil Kapoor, Mr. Raj Kapoor and Mr. Ashok Kapoor. The company is engaged in manufacturing, wholesale and retail trading of gold, diamond and silver and jewellery. The company operates through its showrooms located in Karol Bagh, Delhi. BHOLA NATH: CRISIL Migrates B Rating to Non Cooperating Category ---------------------------------------------------------------- CRISIL has been consistently following up with Bhola Nath Naresh Kumar (BNNK) for obtaining information through letters and emails dated March 28, 2018, April 19, 2018, May 4, 2018 and May 10, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 3.85 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term .15 CRISIL B/Stable (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 Bhola Nath Naresh Kumar, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Bhola Nath Naresh Kumar 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 Bhola Nath Naresh Kumar 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. The Harshna group was established in 1993 by Mr Rakesh Bhola Nath Kohli and Mr Naresh Bhola Nath Kohli, with the establishment of BNRK and BNNK. Both the firms are commission agents for trading in apples in Delhi's Azadpur mandi. In 1999, the group decided to establish its own cold storage facility in Sonipat (Haryana), for which it set up HICS in the same year. HICS currently has a multi- product cold-storage facility, with capacity of 11,500 tonne, along with ripening chambers. In 2004, the group set up HF, which supplies fruits to retail stores. ELECTROSTEEL STEEL: Vedanta Asks NCLAT to Lift Stay Over Sale ------------------------------------------------------------- Press Trust of India reports that Vedanta Ltd on May 28 asked the National Company Law Appellate Tribunal (NCLAT) to vacate its order for maintaining status quo over the sale of debt-ridden Electrosteel Steel. During the proceedings of the appellate tribunal, senior advocate C A Sundaram appearing for Vedanta Ltd said that status quo is causing losses to the banks involved, the report says. PTI relates that the NCLAT bench, headed by Justice S J Mukhopadhaya, has directed to list the matter on May 29 and would hear it continuously for three days till today, May 31. On May 17, NCLAT admitted the petition of Renaissance Steel challenging Vedanta's bid for debt-ridden Electrosteel, the report notes. Renaissance Steel's resolution application was rejected by the Committee of Creditors (CoC) of Electrosteel Steels. On May 1, NCLAT had directed to maintain status quo in the case pertaining to the sale of debt ridden Electrosteel Steels to Vedanta Ltd, according to the news agency. According to the report, Renaissance has submitted before NCLAT that Vedanta is not eligible to bid for Electrosteel under section 29 A of the Insolvency & Bankruptcy Code as one of Vedanta's affiliates in Zambia a unit of its UK-based parent Vedanta Resources Plc had been found guilty of criminal misconduct. It also raised an objection against CoC's decision to not allow it to participate in the meeting in which the successful bidder was decided, PTI relays. PTI recalls that the NCLT had last month approved the resolution plan submitted by Vedanta for Electrosteel Steels, making it the first among 12 large stressed accounts identified by RBI last year to get resolved under the Insolvency and Bankruptcy Code. The resolution plan involved close to INR53 billion cash payout and a haircut of 60 per cent of the total banks' debt, the report notes. Electrosteel Steels owes lenders more than INR130 billion, of which about INR50 billion is to State Bank of India alone, PTI discloses. Electrosteel Steels Limited operates in the steel manufacturing industry in India. Its products include pig iron, billets, TMT bars, wire rods, and ductile iron pipes. The company was incorporated in 2006 and is headquartered in Kolkata, India. As previously reported by The Troubled Company Reporter - Asia Pacific, The Economic Times cited that Electrosteel Steels is saddled with a debt burden of INR10,274 crore, an amount it owes to a consortium of banks led by the State Bank of India (SBI). The Company has been facing insolvency proceedings after it was admitted in the National Company Law Tribunal (NCLT), India's designated court for bankruptcy cases, in July 2017. FSD BUILDING: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has been consistently following up with FSD Building Materials Private Limited (FSD) for obtaining information through letters and emails dated April 23, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft 30 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 5 CRISIL B+/Stable (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 FSD Building Materials Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on FSD Building Materials 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 FSD Building Materials Private Limited to CRISIL B+/Stable Issuer not cooperating'. FSD, incorporated in 2010, is promoted by Mr Yahya Farouk Darvesh, Ms Hanifa Farouk Darvesh, and Mr Zakaria Farouk Darvesh based in Mumbai. The family has been engaged in the timber industry for over 100 years. The company trades in timber, medium-density fibreboard, and wood-based chemicals, and is managed by Ms Hanifa Farouk Darvesh and Mr Zakaria Farouk Darvesh. GYANKUND TRUST: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Gyankund Trust To Educate and To Serve's (GTTES) bank facilities' ratings to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR153.74 mil. Term loan due on August 2024-February 2027 migrated to Non-Cooperating Category with IND B (ISSUER NOT COOPERATING) rating; and -- INR32.5 mil. Working capital facility migrated to Non- Cooperating Category with IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 24, 2017. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the rating. COMPANY PROFILE Gyankund Trust, incorporated in 2007 in Kurukshetra, manages and operates TERII (Technology Education & Research Integrated Institutions) group of institutes. GURUNAK RICE: CARE Assigns B+ Rating to INR4cr LT Loan ------------------------------------------------------ CARE Ratings has assigned rating to the bank facilities of Gurunak Rice Industries (GRI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 4.00 CARE B+; Stable Assigned Short-term Bank Facilities 3.00 CARE A4 Assigned Detailed Rationale and Key Rating Drivers The ratings assigned to the bank facilities of Gurunak Rice Industries (GRI) are constrained by its small scale of operations with moderate profit margins, regulation by government in terms of minimum support price, seasonal nature of availability of raw material resulting in high working capital intensity, exposure to vagaries of nature, partnership nature of constitution, moderate capital structure with moderate debt coverage indicators and its presence in fragmented and competitive nature of industry. The ratings, however, derive strength from experienced partners, long track record of operations and close proximity to raw material sources with favorable industry scenario. Going forward, the ability of the firm to increase its scale of operations, improvement in profit margins and management of working capital effectively will be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operation with moderate profit margins: The scale of operations of the firm remained small marked by total operating income of INR11.04 crore (INR8.12 crore in FY16) with a PAT of INR0.24 crore (INR0.21 crore in FY16) in FY17. The firm has booked turnover of around INR10.00 crore in 9MFY18. Furthermore, the profitability margins of the firm remained low marked by PBILDT margin of 5.71% (7.40% in FY16) and PAT margin of 2.15% (2.62% in FY16) in FY17. Regulation by Government in terms of minimum support price (MSP): The Government of India (GoI), every year decides a minimum support price (MSP) to be paid to paddy growers which limits the bargaining power of rice millers over the farmers. The MSP of paddy increased during the crop year 2017-18 to INR1550/quintal from INR1470/quintal in crop year 2016-17.The sale of rice in the open market is also regulated by the government through levy of quota, depending on the target laid by the central government for the central pool. Given the market determined prices for finished product vis-a-vis fixed acquisition cost for raw material, the profit margins are highly vulnerable. Seasonal nature of availability of raw material resulting in working capital intensity and exposure to vagaries of nature: GRI is primarily engaged in the processing of rice products in its rice mills. Paddy is mainly a 'kharif' crop and is cultivated from June-July to September-October and the peak arrival of crop at major trading centers begins in October. The cultivation of paddy is highly dependent on the monsoon. Unpredictable weather conditions could affect the output of paddy and result in volatility in price of paddy. In view of seasonal availability of paddy, working capital requirements remain high at season time owing to the requirement for stocking of paddy in large quantity. Moreover, the average fund based working capital utilisation remained high at 85% during the last twelve months ended on December31, 2017. Also, agro products cultivation is highly dependent on monsoons, thus exposing the fate of the firm's operation to vagaries of nature. Constitution as a partnership firm: GRI, being a partnership firm, is exposed to inherent risk of the partner's capital being withdrawn at time of personal contingency and firm being dissolved upon the death/insolvency of the partners. Furthermore, partnership entities have restricted access to external borrowing as credit worthiness of partners would be the key factors affecting credit decision for the lenders. Moderate capital structure and debt coverage indicators: The capital structure of the firm remained moderate marked by debt equity ratio of 0.02x (FY16: 0.04x) and overall gearing ratio of 1.66x (FY16: 1.65x) in FY17. The debt coverage indicators also remained moderate marked by interest coverage of 1.96x (FY16: 1.97x) and total debt to GCA of 8.29x (FY16: 7.85x) in FY17. Intensely competitive nature of the industry with presence of many unorganized players: Rice milling industry is highly fragmented and competitive due to presence of many small players operating in this sector owing to its low entry barriers, due to low capital and technological requirements. Raipur and nearby districts of Chhattisgarh are a major paddy growing area with many rice mills operating in the area. High competition restricts the pricing flexibility of the industry participants and has a negative bearing on the profitability. Key Rating Strengths Experienced partners with long track record of operations: The firm is into rice milling business since 2004 and thus has long operational track record. The key partner, Mr. Gurubhej Singh Chawla have more than four decades of experience in rice milling industry, looks after the overall management of the firm supported by other partner, Mr. Ajit Singh Chawla who also have more than two decades of experience in the same line of business. The firm is deriving benefits out of the long experience of the partners. Close proximity to raw material sources and favorable industry scenario: GRI's plant is located at Raipur, Chhattisgarh which is close to the vicinity to a major rice growing area of Chhattisgarh, thus, resulting in logistic advantage. Further, rice being a staple food grain with India's position as one of the largest producer and consumer, demand prospects for the industry is expected to remain good in near to medium term. Gurunank Rice Industries (GRI) was constituted as a partnership firm in April 2004 by Mr. Gurubhej Singh Chawla, and Mr. Ajit Singh Chawla. Since its inception, the firm has been engaged in processing and milling of basmati, non-basmati rice (parboiled rice), broken rice, rice bran and husk. The manufacturing facility of the firm is located at Raipur, Chhattisgarh with aggregate installed capacity of 17520 metric ton per annum. HARMONY SHUBHAM: CRISIL Withdraws B Rating on INR7.5MM Term Loan ---------------------------------------------------------------- Due to inadequate information, CRISIL, in line with SEBI guidelines, had migrated the rating of Harmony Shubham Associates (HSA) to 'CRISIL B/Stable/Issuer not cooperating'. CRISIL has withdrawn its rating on bank facility of HSA following a request from the company and on receipt of a 'no dues certificate' from the banker. Consequently, CRISIL is migrating the ratings on bank facilities of HSA from 'CRISIL B/Stable/Issuer Not Cooperating to 'CRISIL B/Stable' the rating action is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 7.5 CRISIL B/Stable (Migrated from 'CRISIL B/Stable' Issuer Not Cooperating and Rating Withdrawn) Established in 2014, HSA is a special purpose vehicle (SPV) formed by the Harmony group and the Shubham group of Pune. HSA is currently executing a commercial real estate project named 'Vantagio' at Wakad, Pune. HEARTS MALABAR: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Hearts Malabar Clinical Solutions Private Limited's (Hearts Malabar) Long-Term Issuer Rating at 'IND B'. The Outlook is Stable. The instrument-wise rating actions are: -- INR90.3 mil. (reduced from INR100 mil.) Long-term loan due on April 2027 affirmed with IND B/Stable rating. KEY RATING DRIVERS The affirmation reflects Hearts Malabar continued small scale of operations and weak credit metrics. As per FY18 provisional financials, revenue was stable at INR185.8 million (FY17: INR186.4 million. However, interest coverage (operating EBITDA/gross interest expense) improved to 1.3x in FY18P (FY17: 0.5x) and net leverage (total adjusted net debt/operating EBITDAR) to 9.7x (18.2x) on account of an improvement in absolute EBITDA to INR24 million (INR10 million). The increase in the EBITDA was attributed to a reduction in operating expenses. Consequently, EBITDA margins expanded to 13.1% in FY18P (FY17: 5.3%). Ind-Ra expects the revenue and credit metrics to improve in FY19 on account of stabilization of operations and increase in bed occupancy to 78 beds in FY18 (FY17: 67 beds). The ratings are, however, supported by the promoter's over 10 years of experience in providing healthcare services. RATING SENSITIVITIES Negative: Inability to improve the EBITDA margins and revenue as per management's expectations will be negative for the ratings. Positive: Stabilization of operations leading to a substantial growth in the top line and profitability, resulting in a sustained improvement in the credit metrics, may lead to a positive rating action. COMPANY PROFILE Incorporated in 2014, Hearts Malabar operates a 108-bed multi- specialty hospital in Kottakkal (Kerala). The hospital, which commenced operations in April 2015, provides treatment in cardiology, gynaecology, pediatrics, among others. HI-TECH PACKAGING: CRISIL Assigns B+ Rating to INR3.42MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Hi-Tech Packaging (HTP). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 1.33 CRISIL B+/Stable (Assigned) Proposed Term Loan 3.42 CRISIL B+/Stable (Assigned) Cash Credit 3.00 CRISIL B+/Stable (Assigned) Foreign Letter of Credit 2.25 CRISIL A4 (Assigned) The rating reflects modest scale of operations in a fragmented industry and below average financial risk profile. These weaknesses are partially offset by extensive experience of promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations in a fragmented industry: The modest scale of operations limits its ability to benefit from economies of scale, which are available to players with larger volumes. Also, the Indian plastic film industry is fragmented, with low entry barriers in the form of low capital and low technology intensity, leading to stiff competition. Modest scale of operations also constrains its ability to fully pass on any cost increases to customers. CRISIL believes small scale of operations in the fragmented industry will constrain the ability to achieve economies of scale as well as bargaining power with customers. * Average financial risk profile: HTP has average financial risk profile marked by estimated modest net worth of Rs. 1.61 crore, moderate gearing of 1.76 times as on March 31, 2018. The firm has above average debt protection metrics with net cash accrual to Total debt (NCATD) and interest coverage ratios of over 0.18 and 4.32 times, respectively, for 2017-18. Financial risk profile may remain average over the medium term. Strengths: * Experience of promoters: The promoters have more than two decade of experience in the business. The promoters' expertise has helped the firm develop healthy relationships with customers and suppliers and get repeat orders from them. CRISIL believes the firm may benefit from the promoters' longstanding experience in the industry. Outlook: Stable CRISIL believes that HTP would continue to benefit over the medium term from the extensive experience of the promoters. The outlook may be revised to 'Positive', if the firm records considerable increase in revenues while maintaining its profitability resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative', if the firm records lower than expected revenue and profitability or if the firm undertakes a larger than expected debt funded capital expenditure programme, or if there are greater than expected capital withdrawal by the partners, weakening in its financial risk profile. HTP was incorporated in 2010. The firm is engaged in manufacturing of plastic films. Day to day operations are managed by Mr. Nixon PV (Managing Partner). Currently HTP has installed capacity of 300 kg per hour. JBF INDUSTRIES: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed JBF Industries Limited's (JBF) Long-Term Issuer Rating at 'IND D' and migrated 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. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR4 bil. Fund-based working capital limits (Long-term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR16 bil. Non-fund-based working capital limits (Short- term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR2.8 bil. Term loan (Long-term) due on March 2020 affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR200 mil. Proposed term loan (Long-term) affirmed and migrated to non-cooperating category with Provisional IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on the best available information KEY RATING DRIVERS Ind-Ra continues to take a consolidated view of JBF along with its subsidiaries, JBF Petrochemicals Ltd (IND D (ISSUER NOT COOPERATING)), JBF RAK LLC, JBF Global Europe BVBA and JBF Bahrain SPC, together referred to as the JBF group, for the ratings. The affirmation reflects JBF' continued delays in debt servicing since the last review. This is on account of significant deterioration in the group's financial risk profile, resulting from losses in overseas operations and continuous delays in the commencement of operations at its purified terephthalic acid plant. The losses are also attributed to the impact of demonetization, resulting in cash flow mismatches. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. COMPANY PROFILE JBF group is a leading producer of polyester and other related products in the polyester value chain. Its production capacity is about 1.9mtpa, which would increase to 3.2mtpa once the purified terephthalic acid plant commences operations. The group operates out of three domestic facilities, one in Gujarat and two in Silvassa, and three international facilities, one each in the UAE, Belgium and Bahrain. JBF PETROCHEMICALS: Ind-Ra Migrates 'D' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded JBF Petrochemicals Limited's (JBF Petro) Long-Term Issuer Rating to 'IND D' from 'IND C' and migrated 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. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- USD416 mil. External commercial borrowings* (Long-term/Short- term) due on April 2025 downgraded and migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. * Including USD326.96 million sub-limit of letter of credit/bank guarantee Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on the best available information KEY RATING DRIVERS Ind-Ra continues to take a consolidated view of the financial and credit profiles of JBF Petro and its ultimate parent, JBF Industries Limited ('IND D (ISSUER NOT COOPERATING)'), and associate concerns JBF RAK LLC, JBF Global Europe BVBA and JBF Bahrain SPC, together referred to as JBF Group, to arrive at the ratings. The downgrade reflects the delays in the commencement of JBF Petro's purified terephthalic acid plant and the resultant tight liquidity position leading to the non-servicing of debt. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. COMPANY PROFILE Incorporated in FY11, JBF Petro was set up to execute JBF group's backward integration project of a 1.25mtpa purified terephthalic acid plant in Mangalore. JIWANSAAGAAR REALTY: CRISIL Withdraws B+ Rating on INR14MM Loan --------------------------------------------------------------- CRISIL has withdrawn its rating on the long-term bank facility of Jiwansaagaar Realty Private Limited (JRPL) following a request from the company and on receipt of a 'no dues certificate' from the banker. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 14 CRISIL B+/Stable (Withdrawn) Incorporated in 2013, JRPL is currently executing a residential real estate project, Garden Heights, in Bhagalpur, Bihar. Mr Anil Kishorepuria manages operations K.A.I.G. CONSTRUCTIONS: CRISIL Moves B+ Rating to Non-Cooperating ----------------------------------------------------------------- CRISIL has been consistently following up with K.A.I.G. Constructions Private Limited (KAIG) for obtaining information through letters and emails dated April 5, 2018, May 8, 2018 and May 14, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 4.5 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Overdraft 4.5 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 K.A.I.G. Constructions Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on K.A.I.G. Constructions 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 ratings on bank facilities of K.A.I.G. Constructions Private Limited to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Set up in 2001, KAIG is engaged in civil construction, primarily irrigation projects in Tamil Nadu. The company is based in Madurai (Tamil Nadu) and promoted by Mr. I. Gurusamy and Mr. Ashok Kumar. Both the directors are Class I civil contractors. MAHESHWARI FABTEX: CRISIL Reaffirms B+ Rating on INR8MM Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term facilities of Maheshwari Fabtex Private Limited (MFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 CRISIL B+/Stable (Reaffirmed) Long Term Loan 1.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility .5 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's small scale of operations in the highly competitive textile trading industry and below-average financial risk profile. These weaknesses are partially offset by the extensive experience of its promoters. Key Rating Drivers & Detailed Description Weaknesses * Small scale of operations: Despite improvement, scale of operations remains modest with estimated operating income of INR58 crore and profit margin of 3.8% for fiscal 2018. The textile industry is intensely competitive due to the presence of several small and large mills, power looms and handlooms. Furthermore, competition from cheaper imports, limited value addition and product differentiation constrains the bargaining power of the traders, which results in thin operating margin. * Below-average financial risk profile: Networth remains modest and is estimated at INR3.0-3.2 crore as on March 31, 2018. The total outside liabilities to adjusted networth ratio, estimated at 4.3-4.4 times, is expected to decline over the medium term as networth is likely to increase and liabilities should reduce gradually with repayment of term loan and the absence of any further capital expenditure plans. Debt protection metrics remain average with interest coverage ratio of 1.6-1.7 times for fiscal 2018. Strengths * Extensive experience of the promoters: Benefits from the promoters' two-decade-long experience in the industry and established relationships with suppliers and customers should support business. The benefits include repeat orders from reputed clients such as Raymond Ltd, Bombay Dyeing, S Kumar and Grasim Industries. The company has also started weaving of grey fabric on job work basis for Bombay Dyeing. * Improvement in working capital cycle: Working capital requirement has declined as reflected in estimated gross current assets of 91 days as on March 31, 2018, lower than 115 days in the previous year due to smaller receivables cycle estimated at 51 days as compared with 75 days in the previous year. Outlook: Stable CRISIL believes MFPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if increase in scale of operations and stable profitability lead to high cash accrual and working capital management is efficient. The outlook may be revised to 'Negative' if large working capital requirement or low cash accrual, weakens liquidity. Incorporated in 2002, MFPL primarily trades grey and shirting fabric. In 2009, it also started undertaking job work for local dealers and traders, wherein it weaves grey fabric from yarn. The manufacturing unit is in Bhiwandi, Maharashtra while the head office is in Mumbai. The promoters also operate two other entities - Khator Fibre and Fabrics Ltd and Goyal Creations Pvt Ltd. Mrs Bina Devi Khator and her nephew Mr Praful Khator manage the operations. MNG OVERSEAS: CRISIL Migrates B+ Rating to Non-Cooperating ---------------------------------------------------------- CRISIL has been consistently following up with MNG Overseas Private Limited (MNGOPL) for obtaining information through letters and emails dated April 25, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Warehouse Receipts 9.5 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 MNG Overseas Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MNG Overseas 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 MNG Overseas Private Limited to CRISIL B+/Stable Issuer not cooperating'. MNGOPL, is a Delhi-based company, established and promoted in 2012 by Mr Mitihilesh Gupta, Ms Geeta Gupta and their son, Mr Namit Gupta. The company trades in rice and maize, both locally and globally. OPTIONS LAWNS: CARE Reaffirms B+ Rating on INR8.01cr LT Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Options Lawns Private Limited (OLPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 8.01 CARE B+; Stable Reaffirmed Rating Rationale & Key Rating Drivers The rating assigned to the bank facilities of Options Lawns Private Limited (OLPL) is primarily constrained on account of stabilization risk associated with its recently completed Greenfield project for operating a resort. The rating, further, continues to remain constrained on account of its presence in the highly fragmented and competitive industry and seasonality of the business. The above weaknesses are continued to partially offset by extensive experience of the promoters in the diverse sectors and strategic location of the resort. The rating, further, derive strength from available moratorium period. The ability of the company to stabilizes its operations while achieving envisaged level of occupancy and profitability is a key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Stabilization risk associated with its project: OLPL was incorporated with a purpose to operate a resort in an area of 14000 sq ft on Bedhaghat Road, Jabalpur and will have 52 rooms, 3 banquet halls, 1 garden restaurant, pub, camping site, spa and wellness centre etc. It envisaged total cost of the project amounting to INR10.26 crore which envisaged to be funded through promoter's capital in the form of share capital of INR2.71 crore and balance through term loans. It was envisaged that project to be operational from April 2018. Further, the company has attained financial closure with term loan of INR 6.71 crore and remaining through share capital and unsecured loans from promoters. The project was completed in April, 2018, however the rooms will be operationally from May, 2018 within the envisaged cost of INR10.26 crore. Project Implementation risk: The company has undertaken a project for construction of bar with envisaged cost of INR 1.35 crore funded through term loan of INR 1.00 crore and balance through promoter's capital. The project is envisaged to be completed by June, 2018. Further, OLPL has applied for the BAR license. High competition faced by the company with seasonality of business: The company operates in a highly segmented hospitality industry of Bhedaghat Road, Jabalpur. The Bedaghat area is a famous tourist destination with many small players comprising of hotels, resorts and recreational centers operating in the area such as Motel Marble Rocks, Resort Palm Pair, Vrindawan Gopala Resort, Hotel Satya Ashoka etc. Thus, OLPL faces high competition from the established players in the Bhedaghat area. Further, revenue of the company is season in nature as tourist inflow tends to increase in summer season and holiday season making operations seasonal in nature. Furthermore, there is high dependence on the tourism industry in Madhya Pradesh and in Bhedhaghat area. Key Rating Strengths Experienced promoters: Mr Rajneesh Verma, Director has an experience of 15 years in infrastructure segment through Rajneesh Verma Builders and Contractors (RVBC). RVBC is a registered Class 1A contractor in the state of Madhya Pradesh since 2002 as indicated by the management. It executes orders from government as well as private companies. The promoter also operates a restaurant by the name "Options Lawns" in Jabalpur which is operational since 2002. Being in the industry for over one and a half decades has helped the promoter in gaining adequate acumen about diverse industries and has helped in the smooth operations of the OLPL. Strategic location of the resort: The resort is located in Bhedaghat road, Jabalpur in Madhya Paradesh which is promoted by Madhya Pradesh Tourism. Located on the outskirts of Jabalpur, the area is a popular tourist spot and is famous for marble rock mountains on the banks of Narmada river. The Dhuadhar water fall is another tourist attraction in the area along with the Chausath Yogini Temple. Hence, the resort will benefit from the tourist attractions located in the vicinity. Available moratorium period: Though the commercial operation of the company has started from May, 2018, the term loan repayment is scheduled to commence from April, 2019. The company has received the moratorium period of 12 months from the commencement date of its production. Hence, OLPL has sufficient time in order to stabilize its operations and generate enough cash accruals to service its debt obligations. Jabalpur (Madhya Pradesh) based, OLPL was incorporated on April 1, 2016 by Mr Rajneesh Verma. The company is held by Riqueza Capital Investments Limited along with Mr Rajneesh Verma and Ms Sakshi Verma. Riqueza Capital Investments Limited (RCIL) is a Hong Kong based leading financial/business consulting firm having a strong global presence in Singapore, India, UK, Dubai and Mauritius directly or indirectly through its network partners & associates. PARAS TARP: CRISIL Migrates B+ Rating to Non-Cooperating Category ----------------------------------------------------------------- CRISIL has been consistently following up with Paras Tarp Industries (PTI) for obtaining information through letters and emails dated April 26, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1.8 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Long Term Loan 5.0 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 0.2 CRISIL B+/Stable (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 Paras Tarp Industries, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Paras Tarp Industries is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of Paras Tarp Industries to CRISIL B+/Stable Issuer not cooperating'. Established in 2014, PTI is promoted by the Hirabhai Patel and family. The firm, based in Ahmedabad, is into manufacture and trade in high-density polyethylene/polypropylene woven sacks and laminated tarp at its production facilities in Ahmedabad. It commenced its production in June 2015 only. POWERTECH ELECTROINFRA: CRISIL Moves B Rating to Non-Cooperating ---------------------------------------------------------------- CRISIL has been consistently following up with Powertech Electroinfra Private Limited (PEPL) for obtaining information through letters and emails dated April 24, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3.4 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 5.0 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 1.6 CRISIL B/Stable (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 Powertech Electroinfra Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Powertech Electroinfra 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 ratings on bank facilities of Powertech Electroinfra Private Limited to CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. PEPL was established in 2009, promoted by Mr Raghav Agarwal and Mr Sudhir Agarwal. The company trades in raw material required for setting up of power sub-stations. These include transformers, cables, poles, wires, lamps, and lighting equipment. The company also trades in kitchen utensils under the mid-day meal scheme in Uttar Pradesh. It mainly undertakes tender-based orders from various government departments in Uttar Pradesh. PROGRESSIVE INDUSTRIES: CRISIL Moves B- Rating to Not Cooperating ----------------------------------------------------------------- CRISIL has been consistently following up with Progressive Industries (PI) for obtaining information through letters and emails dated March 28, 2018, April 19, 2018, May 10, 2018 and May 15, 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) Proposed Long Term 0.06 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 3.94 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 Progressive Industries, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Progressive Industries 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 Progressive Industries to CRISIL B-/Stable Issuer not cooperating'. Established as a proprietorship concern in fiscal 2010 and reconstituted as a partnership firm in fiscal 2013 by Mr. Amarjit Singh, Mr. Navtej Singh, Mr. Gurnam Singh, and Mr. Lakhvir Singh, PI manufactures metal sheets and LPG cylinders for Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd. The firm has an installed capacity of 60 thousand cylinder per month that vary in sizes ranging from 14.2-47.5 kilogrammes. RAJ REGENCY: Ind-Ra Maintains B+ Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Raj Regency's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR60 mil. Term loan due on January 2025 maintained in Non- Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 3, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Raj Regency is a hotel in Rajnandgaon, Chhattisgarh. The hotel has 23 rooms and facilities such as coffee shop, bar, restaurant and banquet. It is managed by partners Surinder Kaur Bhatia, Harjeet Singh Bhatia and Jasvindar Singh Bhatia. RC ALL-TECH: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained RC All-Tech Power Systems Private Limited's (RC All-Tech) Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR17.5 mil. Fund-based working capital limits maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) /IND A4+ (ISSUER NOT COOPERATING) rating; -- INR31.8 mil. Non-fund-based working capital limits maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR0.7 mil. Term loan maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 13, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE RC All-Tech was established as a partnership concern in 1993 as All Tech and was converted into a joint stock company under the present name in 1998. It manufactures various types of UPS, including solar hybrid UPS. RELIANCE COMMMUNICATIONS: Deal with Minority Investors Reached -------------------------------------------------------------- Reliance Communications Ltd said on May 29 that its subsidiary Reliance Infratel Ltd. has informed the Hon'ble NCLAT that an amicable settlement has been arrived at between it and minority investors holding 4.26% equity in the Company, and consent terms will be filed shortly. The settlement with the minority investors paves the way for vacation of the stay granted by the NCLT on the sale of RITL's tower and fibre assets, and will enable the Company to proceed with asset monetisation of INR8,000 crore as soon as the Company exits the debt resolution process under NCLT, the company said. As reported in the Troubled Company Reporter-Asia Pacific on May 17, 2018, The Economic Times said the dedicated bankruptcy court has admitted three insolvency petitions filed against Reliance Communications and its subsidiaries, by Ericsson, dealing a severe blow to the telco's plans of selling most of its wireless units to Reliance Jio Infocom (Jio). The decision, which came after nearly eight months since the Swedish telecom equipment maker moved the National Company Law Tribunal's (NCLT) Mumbai bench to recover INR1150 crore in dues, effectively makes the Anil Ambani owned carrier bankrupt, the second such after Chennai-based Aircel, ET said. Based in Mumbai, India, Reliance Communications Ltd (BOM:532712) -- http://www.rcom.co.in/Rcom/personal/home/index.html-- is a telecommunications service provider. The Company operates through two segments: India Operations and Global Operations. India operations segment comprises wireless telecommunications services to retail customers through global system for mobile communication (GSM) technology-based networks across India; voice, long distance services and broadband access to enterprise customers; managed Internet data center services, and direct-to- home (DTH) business. Global operations comprise Carrier, Enterprise and Consumer Business units. It provides carrier's carrier voice, carrier's carrier bandwidth, enterprise data and consumer voice services. The Company owns and operates Internet protocol (IP) enabled connectivity infrastructure, comprising over 280,000 kilometers of fiber optic cable systems in India, the United States, Europe, Middle East and the Asia Pacific region. SHRI HARI: CARE Assigns B+ Rating to INR8cr LT Loan --------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Shri Hari Pulses (SHP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 8 CARE B+; Stable Assigned Detailed Rationale & Key rating Drivers The ratings assigned to the bank facilities of Shri Hari Pulses (SHP) are primarily constrained on account of fluctuating profitability margins, weak solvency position and stressed liquidity position. The ratings, further, constrained on account of seasonality associated with agro commodities and presence in highly fragmented and government regulated industry. The ratings, however, favorably take into account experienced management and continuous increase in scale of operations. The ability of the firm to increase its scale of operations and better working capital management of the firm are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weakness Fluctuating profitability margins, weak solvency position and stressed liquidity position: Being present in the industry of agriculture commodities, the profitability of the company is exposed to fluctuation in prices as well as availability of agriculture commodities. PBILDT margin of the company has witnessed increasing trend in last three financial years ended FY17 owing to higher income from processed products which has higher margin as compared to trading activity. The capital structure of the company stood highly leveraged with an overall gearing of 3.77 times as on March 31, 2017, improved from 3.94 times as on March 31, 2016 owing to addition of profit to reserves. The business of the firm is working capital intensive in nature with high operating cycle in FY17. Due to high inventory, the current ratio stood moderate at 1.20 times, however, quick ratio remained below unity and very low at 0.54 times as on March 31, 2017. Seasonality associated with agro commodities and presence in highly fragmented and government regulated industry: As the company is engaged in the business of agriculture commodities, the prices of agriculture commodities remained fluctuating and depend on production yield, demand of the commodities and vagaries of weather. Hence, profitability of the SHP is exposed to vulnerability in prices of agriculture commodities. Further, the business of the company is characterized by highly fragmented and competitive in nature as evident by the presence of numerous unorganized and few organized players. The entry barriers in this industry are very low on account of low capital investment and technological requirement. Due to this, the players in the industry do not have any pricing power. Furthermore, the industry is characterized by high degree of government control both in procurement and sales for agriculture commodities. Government of India (GoI) decides the Minimum Support Price (MSP) payable to farmers. Key Rating Strengths Experienced management: Being present in the industry since long period of time, the management of the firm has established relationship with customers and suppliers. The partners of the firm Mr Rajendra Kumar who have experience of around for decade in the industry, further he is assisted by his other family members in handling other parts of the business. Furthermore, this is their family business and all the family is engaged in similar line of business. The oldest firm of the group is Bhagirath Dhannalal which was formed in 1898, and this is fourth generation to handle the business. Continuous increase in scale of operations: The scale of operations of the company has witnessed continuous growth and grew at a CAGR of 4.49% in the last three financial years ended FY17 owing to increase in demand of its processed products as well as higher trading activity. During FY17, it has generated 60% of net sales from processed products and remaining through trading activity. Shri Hari Pulses (SHP) based out of Indore (Madhya Pradesh) was formed in 1978 as a partnership concern by Mr Rajendra Kumar and other family members. The partners of the company are Mr Rajendra Kumar, Ms Chanda Bai and Ms Kalawati. SHP is engaged in the business of processing of Moong Dall, Channa Dall and grading of wheat. It is also engaged in the trading of variety of agriculture commodities. It purchases the commodities from local mandi and sells it in Madhya Pradesh, Tamil Nadu, Delhi and Maharashtra under brand name of 'Double Elephant' and 'Amrpali'. STRANDS TEXTILE: Ind-Ra Maintains BB LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Strands Textile Mills Pvt. Ltd.'s (Strands) Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR47.5 mil. Fund-based limit maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 18, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2006, Strands manufactures home textile products for exports, primarily to the US. SUPER INFRATECH: CRISIL Migrates D Rating to Non-Cooperating ------------------------------------------------------------ CRISIL has been consistently following up with Super Infratech Private Limited (SIPL) for obtaining information through letters and emails dated April 26, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8.74 CRISIL D (Issuer Not Cooperating; Rating Migrated) Bill Discounting 4.90 CRISIL D (Issuer Not Cooperating; Rating Migrated) Cash Credit 1.90 CRISIL D (Issuer Not Cooperating; Rating Migrated) Term Loan .46 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 Super Infratech Private Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Super Infratech 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 ratings on bank facilities of Super Infratech Private Limited to CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2001, SIPL is promoted by Mr Sujit Bardole and his wife. It is engaged in civil construction for state and central governments. The company develops and maintains roads. TIRVANI RICE: CRISIL Migrates B Rating to Not Cooperating Cat. -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Tirvani Rice Industry (TRI) for obtaining information through letters and emails dated April 24, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8 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 Tirvani Rice Industry, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Tirvani Rice Industry 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 Tirvani Rice Industry to CRISIL B/Stable Issuer not cooperating'. TRI was set up in 1998 as a partnership firm by four friends - Charan Das, Gopal Aggarwal, Rahul Bansal and Din Dayal. The firm has a rice milling and sorting unit with capacity of 10 tons per day in Faridkot. In 2016, the firm has set up a new unit of rice bran oil extraction which has commenced operations in November 2016. TULSI MARKETING: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Tulsi Marketing's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR50.0 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 27, 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 1999, Tulsi Marketing is a distributor of Apple, Samsung, HTC and Lenovo mobile and smart phones. TURBO CAST: CRISIL Migrates B+ Rating to Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Turbo Cast India Private Limited (TCIPL) for obtaining information through letters and emails dated, April 26, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit .5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 1.77 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Term Loan 5.08 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 Turbo Cast 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 Turbo Cast India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Turbo Cast India Private Limited to CRISIL B+/Stable Issuer not cooperating'. Incorporated in February 2013, TCIPL has set-up 225-tonnes per annum investment castings unit at Rajkot (Gujarat). The company is promoted by M. R N Mavani, who will oversee its overall operations. VAISHNAVI EXPORTS: CRISIL Cuts Rating on INR15MM Loan to D ---------------------------------------------------------- CRISIL Ratings has downgraded its rating on bank facilities of Vaishnavi Exports and Import Co. (VEIC; a part of Aditya Group) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 15 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects instances of bill overdue for more than 30 days. The same is on account of delay in realization of receivables from the group's customers resulting in stretched liquidity. The ratings also factors below-average financial risk profile marked by high total outside liabilities to total net worth (TOLTNW) ratio and large working capital requirements. These rating weaknesses are partially offset by extensive experience of promoters in trading business. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of VEIC and its group companies Aaryan Trade and Exim LLP (ATEL), Aditya Investment And Exim Trade Company Private Limited (AIETPL), Magdha Creative Merchant LLP (MCML), Vedant Trade Impex Private Limited (VTIPL), Veeaar Fabware Private Limited (VFPL) and Vihaan Infin And Exim Private Limited (VIEPL), collectively referred to as the Aditya group. This is because all these entities, together referred to as the Aditya group, are in the same line of business and under a common management, and have operational synergies. Key Rating Drivers & Detailed Description Weakness * Bills overdue for more than 30 days: Stretched liquidity caused by delay in realization of receivables from the group's customers have led to bills being overdue for more than 30 days * Below-average financial risk profile: Owing to a stretched working capital cycle, the group's total outside liabilities to total net worth ratio remained high at around 13 times as on March, 2017. With the expected improvement in working capital management, the TOLTNW ratio is expected to improve however, will remain high over the medium term. The debt protection metrics remains moderate marked by moderate interest coverage ratio of 2.2 times in fiscal 2017. * Large working capital requirements: The group's operations are working capital intensive as indicated by high gross current asset of 228 days as on March, 2017. This is primarily attributable to the high credit extended to the customer. However, against this, the group is able to get credit at the similar level. CRISIL believes that the group's working capital management is expected to improve over the medium term on account of lower reliance on creditors to fund the working capital requirements. The improvement of working capital management will remain key rating sensitivity factor over the medium term. Strength * Extensive experience of promoters: The group benefits from the extensive experience of promoters of over 3 decades in the trading business. Over the years, the management has established healthy relationship with the customers thus, resulting in repeated orders. Aditya Group was established by Mr Ramesh Singh in 2008. The group is engaged into exports of food grains, coconuts, confiseries (Stationery, Biscuits and Chocolates), Textiles products (RMG, Shirting & Suiting and fabrics). The group is based out of Mumbai, Maharashtra. VIKAS TRANSPORT: CRISIL Moves B+ Rating to Not Cooperating Cat. --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Vikas Transport Co. (VTC) for obtaining information through letters and emails dated April 24, 2018, May 10, 2018 and May 15, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Cash Credit 3.8 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 Vikas Transport Co., which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Vikas Transport Co. 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 ratings on bank facilities of Vikas Transport Co. to CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Set up in 2000 in Jammu as a partnership firm by Mr. Paramjeet Singh and his wife, Ms. Harvinder Kaur, VTC is engaged in bulk road transport services. VINOD KUMAR: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vinod Kumar Pandey's (VKP) 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: -- INR50 mil. Fund-based working capital limit migrated to Non- Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR40 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 May 4, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Raipur-based VKP is a proprietorship entity that is registered as a Class-A contractor with the government of Chhattisgarh. VKP participates in the tender process of various government departments of Chhattisgarh for civil construction projects such as building construction and related ancillary works. VISION METALIK: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank facilities of Vision Metalik Company (VMC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 3.3 CRISIL B+/Stable (Reaffirmed) Term Loan 2.5 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the firm's working capital- intensive and small scale of operations in the intensely competitive steel industry, and modest financial risk profile because of an average networth, moderate gearing, and subdued debt protection metrics. These weaknesses are partially offset by the extensive entrepreneurial experience of its promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Since commercial operations began in mid-2014, scale remains small, reflected in turnover of INR21.08 crore in fiscal 2017. However, revenue improved to around INR28 crore for fiscal 2018 on account of better realisation and greater capacity utilisation. * Average financial risk profile: Networth was muted at INR6.71 crore as on March 31, 2017, while gearing was moderate at 1.20 times. Although networth is expected to be at a similar level in FY18 due to muted accretion to reserves, the gearing has slightly improved on account of repayment of the term debt obligation and is expected to hover around 1 time as on 31st March, 2018. Debt protection metrics were subdued, with interest coverage and net cash accrual to total debt ratios of 2.07 times and 0.15 time, respectively, in fiscal 2017. Despite improvement, financial risk profile is estimated to remain weak in fiscal 2018, and over the medium term as well. * Large working capital requirements: Gross current assets were 100 days as on March 31, 2017, driven by large inventory and other current assets. Operations are expected to remain working capital- intensive over the medium term. Strengths * Entrepreneurial experience of promoters: Presence of over a decade in the iron and steel products segment has enabled the promoters to develop healthy ties with customers and suppliers. Outlook: Stable CRISIL believes VMC will continue to benefit over the medium term from promoters' extensive entrepreneurial experience. The outlook may be revised to 'Positive' if business and financial risk profiles improve, backed by a significant increase in revenue and profitability. The outlook may be revised to 'Negative' if profitability declines, or large, debt-funded capital expenditure further weakens financial risk profile. Set up in 2012 as a partnership firm by Mr Narendra Kumar Saharia, Ms Navina Jain, Ms Padma Devi Agarwalla, and their associate companies, VMC manufactures mild steel billets at its facilities in Dibrugarh, Assam. VSR LAMINATES: CRISIL Withdraws B Rating on INR5.14MM Loan ---------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the long-term bank facility of VSR Laminates Private Limited (VSR) following a request from the company and on receipt of a 'no dues certificate' from the banker. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Credit 5.14 CRISIL B/Stable (Withdrawn) Term Loan 3.11 CRISIL B/Stable (Withdrawn) Incorporated in 2012 and promoted by Mr. Sushil Karnani, Mr. Rajat Chandak, Mr. Vikas Kansal, and his wife, Ms. Ritu Kansal, VSR commenced operations in 2013 and manufactures flexible packaging such as printing pouches, snacks packaging lamination, and zipper pouches. Provisional profit after tax (PAT) was INR69 lakh on net sales of INR29.6 crore for fiscal 2017; PAT was INR24 lakh on net sales of INR19 crore for fiscal 2016. YOGESH TRADING: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Yogesh Trading Company's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR180 mil. Fund-based working capital limit maintained in 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 20, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2010 in Punjab, Yogesh Trading Company is a proprietorship unit engaged in the business of rice milling. ========= J A P A N ========= SAKAE RHYTHM: Suspends Business After Racking Up JPY772MM in Debt ----------------------------------------------------------------- The Japan Times reports that musical instrument-maker Sakae Rhythm, known for providing drums to renowned musicians such as Jimmy Chamberlin and Greg Hutchinson, has suspended its business with debts totaling JPY772 million (US$6.96 million), according to credit research firm Teikoku Databank. The company, also known for making the instrument for the mechanical drum-playing doll Kuidaore Taro - a famous landmark mascot in Osaka - was established in 1925 and has also sold drums to Yamaha Corp, The Japan Times relates. The report says Sakae, based in the city of Osaka, saw its sales reach JPY1.46 billion in the year to September 1988. But as orders began falling from major customers and sales of its own brand drums were also faltering, sales dropped to JPY313 million in the year to September 2016, according to Teikoku Databank. As banks stopped extending loans, lawyers started debt settlement procedures this month, the report notes. ==================== N E W Z E A L A N D ==================== MEDIAWORKS NZ: Posts NZ$5.7MM Net Loss in Year Ended Dec. 31 ------------------------------------------------------------ Matt Nippert at The New Zealand Herald reports that MediaWorks has trimmed its losses by two-thirds after increasing audience share and stabilising the revenues of its struggling television division. The Herald relates that in accounts for the year to December 2017, MediaWorks reported a bottom line loss of NZ$5.7 million - a significant improvement on the NZ$14.8 million loss for the previous year. The result was due to stable revenues of NZ$300 million, combined with reduced programming and production costs of NZ$98.7 million, down from NZ$104.1 million. According to the report, the company has had a turbulent decade, first laboring under debts of nearly NZ$800 million following a disastrous leveraged buyout by Australia's Ironbridge Capital, and then a disruptive tenure under chief executive Mark Weldon dominated by high-profile staff losses and damaging leaks. Chief executive Michael Anderson, his approach a contrast to the self-styled disruptor Mr. Weldon, said "bold and unique are not really the two words that go with my persona" and he put this year's result down to going back to basics and taking "easy moves settling everything down," the Herald relays. "It's not rocket science," he said of restoring order following Mr. Weldon's tenure. "It was an incredibly disruptive time and people lose focus of the overall picture and they lose track of overall goals." According to the Herald, Mr. Anderson said the focus for television - largely at flagship channel TV3 who have this year screened high-rating shows such as Dancing With the Stars and Married at First Sight - was concentrated on building out primetime slots in order to maximise the company's targetted audience of 24-54 year olds. According to a result presentation by Mr. Anderson, among this audience segment MediaWorks increased its audience share from 19.1 per cent to 20 per cent over the year, the Herald relays. The report relates that the launch of The Project last February - a hybrid comedy and current affairs offering licensed from Australia - was a key part of this focus, he said, helping to channel viewers of the preceding six o'clock news bulletin into entertainment programming later in the evening. "Strategically we're happy with the way it fits. Are we happy with the ratings performance as of now? No. But we see that as an opportunity," the report quotes Mr. Anderson as saying. Mr. Anderson noted the Australian iteration of The Project took four years to bed-in and expressed confidence results of his own spinoff would improve. "This was never going to be a fast turnaround." The Herald adds that the accounts also show Oaktree are, three years after taking over, still having to pour cash into the business. The fund manager tipped in NZ$8 million in 2017, following NZ$14.5 million the year earlier. The Herald says the company is also poised for some balance sheet juggling, with a five-year loan facility of NZ$72.9 million - backed by a range of burned banks and vulture funds who'd acquired debt on the cheap during earlier MediaWorks struggles - due to expire in November. Mr. Anderson, and the accounts, said discussions to replace the facility were well in-train with a commitment letter in hand for a new NZ$95 million, three-and-a-half-year loan from a new lender, the Herald reports. According to the Herald, the old facility had proved troublesome with accounts showing repeated breaches of loan covenants - largely over having an insufficient debt to equity ratio - although given owners Oaktree owned a majority of the debt, receivership was never a realistic consequence. Mr. Anderson was hopeful the terms of the new loan would avoid a repeat of these regular breaches, the Herald adds. "Those days, I'm hoping, are well behind us." MediaWorks NZ Limited -- http://www.mediaworks.co.nz/-- through its subsidiaries, operates in the television and radio broadcasting sectors in New Zealand. It operates the TV3 television network, which primarily offers news, current affairs, and sports programs, as well as entertainment programs; and C4, a free-to-air music channel. ================= S I N G A P O R E ================= PACIFIC RADIANCE: Seeks Court Led Restructuring ----------------------------------------------- The board of directors of Pacific Radiance Ltd. and together with its subsidiaries made reference to announcements made on Sept. 8, 2017, Oct. 16, 2017, Feb. 28, 2018 and April 26, 2018 in connection to the restructuring of the Group's borrowings and debt obligations (the "Restructuring") and the proposed equity injection from anchor investors (the "Investment"). Proposed Scheme of Arrangement In view of the development milestones reached between the Group and its stakeholder groups, including its major lenders and anchor investors, the Group intends to pursue the Restructuring by way of schemes of arrangement to be proposed between the relevant entities of the Group and its creditors under section 210(1) of the Companies Act (Cap.50). Application for Moratorium In order to preserve the proposed Restructuring and Investment, Pacific Crest Pte Ltd ("PCPL"), a wholly-owned subsidiary of the Company, has on May 16, 2018 made applications to the Court under section 211B(1) of the Companies Act (Cap.50) to seek interim protection against legal proceedings that will regress the Group's ongoing discussions with the various stakeholders. The Application seeks, inter alia, orders that (a) no appointment shall be made of a receiver or manager over any property or undertaking of PCPL (b) except with the leave of Court, (i) no legal proceedings may be commenced or continued against PCPL, (ii) no execution, distress or other legal process against any property of PCPL shall be commenced, continued or levied, (iii) no steps to enforce any security over any property of PCPL or to repossess any goods held by PCPL under any chattels leasing agreement, hire- purchase agreement or retention of title agreement shall be taken or continued and (iv) no right of re-entry or forfeiture under any lease in respect of any premises occupied by PCPL may be enforced (collectively the relief sought in (a) and (b), the "Moratorium") for a period of six (6) months from the date of the grant of the Application or until further order. Pursuant to section 211B(8) of the Companies Act, during the period commencing on the filing of the Application and ending on the earlier of 30 days after the Application is made and the date on which the Application is decided by the Court, the Moratorium takes effect automatically and no order may be made for the winding up of PCPL (collectively the "Automatic Moratorium"). The Board believes that the Automatic Moratorium and the Moratorium, if granted, will provide stability for the day to day operations of the Group to continue with support of its customers and key trade suppliers and allow the Group an opportunity and adequate time to pursue the Restructuring and the Investment. Proceedings against Subsidiaries of the Group As a further update, the Board said that Alliance Catering & Consultancy Pte Ltd, a company incorporated in Singapore, has filed winding up applications with the Singapore High Court on May 14, 2018, against PCPL and CSI Offshore Pte Ltd, an indirect wholly-owned subsidiary of the Company, in relation to statutory demands dated April 12, 2018, made by Alliance Catering for the payment of a total sum of US$1,071,986.70 and SGD76,899.03 for services rendered by Alliance Catering to PCPL and CSIO. The Winding Up Applications were filed by Alliance Catering as settlement on mutually acceptable terms could not be reached. The Winding Up Applications are fixed to be heard on June 8, 2018. The Group is in discussion with its legal advisor in respect to the Winding Up Applications to determine the best course of action and various options available to the Group. Meanwhile, the winding up application filed against PCPL will be subject to the Automatic Moratorium. Any further material developments in relation to the Application, the Restructuring and/or the Winding Up Applications will be disseminated at the appropriate juncture. The hearing of the Applications has been fixed on June 11, 2018 at 3:30 p.m. Trading of the Company's securities on the SGX-ST has been voluntarily suspended by the Company on Feb. 28, 2018. About Pacific Radiance Headquartered in Singapore, Pacific Radiance Ltd. -- http://www.pacificradiance.com/-- an investment holding company, owns, manages, and operates offshore vessels in Asia, Africa, Australia, and South America. It operates through three divisions: Offshore Support Services, Subsea Business, and Complementary Businesses. The company operates a fleet of 139 offshore vessels comprising subsea vessels, anchor handling tugs, platform supply vessels, ocean tugs and supply vessels, offshore barges, accommodation and maintenance support vessels, and other specialized vessels for the offshore oil and gas industry. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2018. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***