/raid1/www/Hosts/bankrupt/TCRAP_Public/180725.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, July 25, 2018, Vol. 21, No. 146
Headlines
A U S T R A L I A
AMTIA PTY: First Creditors' Meeting Set for August 2
CLOUGH RENT: First Creditors' Meeting Set for August 2
CLOUGH SALES: First Creditors' Meeting Set for August 2
FLAVOURS FRUIT: First Creditors' Meeting Set for Aug. 2
GREENSILL FAMILY: First Creditors' Meeting Set for August 2
RADIOLOGY PROPERTY: First Creditors' Meeting Set for Aug. 2
RAPPARA PTY: First Creditors' Meeting Set for August 2
C H I N A
CHANGCHUN CHANGSHENG: Risks Delisting Over Vaccine Fraud
CHINA HUARONG: Trying to Recall Some Loans as Cash Crunch Bites
GUIZHOU WUDANG: Fails to Meet Capital Requirements
SHANDONG HAIYOU: Files for Bankruptcy Amid Refiner Turmoil
SUNAC CHINA: Fitch Rates New USD Senior Notes 'BB-(EXP)'
I N D I A
A B CONVENTION: CRISIL Keeps B Rating in Not Cooperating Category
ADARSH JAN: CRISIL Maintains B Rating in Not Cooperating Category
AKR IMPEXPRIVATE: ICRA Removes B Rating from Not Cooperating Cat.
ANUBHAV TRADING: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
AR LANDMARK: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
AVIS INDIA: CRISIL Keeps B+ Rating in Not Cooperating Category
AYURSUNDRA HEALTH: CRISIL Maintains B Rating in Not Cooperating
BMW ENTERPRISES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
DAISY INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating
DBM GEOTECHNICS: CRISIL Maintains D Rating in Not Cooperating
DCR INFRA: ICRA Lowers Rating on INR6.50c Term Loan to D
DENZONG ALBREW: CRISIL Maintains B- Rating in Not Cooperating
DESAI TEXTILES: CRISIL Keeps D Rating in Not Cooperating Category
EMAAR DIAMONDS: CRISIL Lowers Rating on INR9cr Cash Loan to B
ENCORP POWERTRANS: CRISIL Maintains B Rating in Not Cooperating
EXCELLENT POWER: CRISIL Keeps B Rating to in Cooperating Category
GMW ENGINEERS: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
GURU NANAK: CRISIL Maintains B+ Rating in Cooperating Category
H. M. AND COMPANY: CRISIL Keeps B Rating in Not Cooperating
HARI OM: CARE Lowers Rating on INR10cr Long-Term Loan to B
HEMNIL METAL: CRISIL Keeps D Rating to Not Cooperating Category
HERCULES AUTOMOBILES: Ind-Ra Hikes LongTerm Issuer Rating to BB-
INTIMATE JEWELS: CRISIL Maintains B Rating in Not Cooperating
JAMNA METAL: CRISIL Maintains C Rating in Not Cooperating
JAY BAJRANG: CRISIL Maintains B Rating in Not Cooperating
JAYABHERI AUTOMOTIVES: CRISIL Keeps B- Rating in Not Cooperating
KAJJEHALLY ESTATE: CARE Lowers Rating on INR19cr LT Loan to B+
KIRATPUR NER: ICRA Lowers Rating on INR1484.76cr Loan to D
KIRTIMAN CEMENTS: CARE Lowers Rating on INR27cr LT Loan to B
KRG ASSOCIATES: CARE Reaffirms B Rating on INR12cr LT Loan
MAGADH PRECISION: CARE Assigns D Rating to INR35cr Term Loan
MOHIT VENTURES: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating
MONNET ISPAT: NCLT Approves Aion-JSW Resolution Plan
N.E TRADE: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
NATIONAL STEEL: Ind-Ra Lowers Long Term Issuer Rating to 'D'
NIKHIL TOBACCOS: ICRA Maintains B+ Rating in Not Cooperating
NRI EDUCATIONAL: Ind-Ra Migrates BB LT Rating to Non-Cooperating
PRABHAT GLOBAL: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
PRATHUL AUTOMOBILES: ICRA Withdraws B+ Rating on INR13.21cr Loan
PRINITI FOODS: CRISIL Hikes Rating on INR8.98cr Term Loan to B+
RADHA KRISHNA: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
RKC INFRABUILT: ICRA Withdraws B- Rating on INR36.60cr Loan
RKC INFRABUILT (TARAPUR-KHAMBHAT): ICRA Withdraws B- Rating
SHREEJI VITRIFIED: ICRA Assigns B+ Rating to INR6.30cr Loan
SHRI RAM: ICRA Maintains B+ Rating in Not Cooperating Category
SHRIYA RICE: ICRA Reaffirms B Rating on INR5.50cr Loan
SHRIVIDYA EDUCATION: ICRA Cuts Rating on INR88cr Loan to D
SPARSH INDUSTRIES: Ind-Ra Affirms 'BB+' Rating, Outlook Positive
STEELWAYS ENTERPRISES: CRISIL Keeps D Rating in Not Cooperating
SUNDARAM MULTI: CARE Assigns B+ Rating to INR35.03cr LT Loan
SUNLAND CERAMIC: ICRA Reaffirms B+ Rating on INR4cr Cash Loan
SURYA ALLOY: CRISIL Reaffirms D Rating on INR173.38cr Term Loan
TEJASWI MOTORS: ICRA Withdraws B Rating on INR20cr LT Loan
UNIVERSAL TUBE: CARE Lowers Rating on INR13.49cr Loan to D
VIJAYASREE COTTON: CRISIL Keeps B Rating in Not Cooperating
VIVO MOBILE: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
WONDERCHEF HOME: CRISIL Maintains B Rating in Cooperating
M A L A Y S I A
CN ASIA: Uplifted from PN17 Category Effective July 24
S I N G A P O R E
PACIFIC RADIANCE: Commences Restructuring Proceedings
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=================
A U S T R A L I A
=================
AMTIA PTY: First Creditors' Meeting Set for August 2
----------------------------------------------------
A first meeting of the creditors in the proceedings of Amtia Pty
Ltd will be held at the offices of BPS Recovery, Level 18, 201
Kent Street, in Sydney, NSW, on Aug. 2, 2018, at 11:00 a.m.
Mitchell Warren Ball and Daniel John Frisken of BPS Recovery were
appointed as administrators of Amtia Pty on July 23, 2018.
CLOUGH RENT: First Creditors' Meeting Set for August 2
------------------------------------------------------
A first meeting of the creditors in the proceedings of Clough
Rent Roll Pty Ltd as trustee for Clough Rent Roll Trust & LJH New
Farm Trust, trading as L.J. Hooker New Farm, will be held at the
offices of Mcleod & Partners, Level 1, 215 Elizabeth Street, in
Brisbane, Queensland, on Aug. 2, 2018, at 9:30 a.m.
Jonathan P McLeod and Bill Karageozis of Mcleod & Partners were
appointed as administrators of Clough Rent on July 23, 2018.
CLOUGH SALES: First Creditors' Meeting Set for August 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Clough
Sales Pty Ltd as trustee for The Clough Sales Trust & The
Greensill Business Trust, trading as L.J. Hooker New Farm, will
be held at the offices of Mcleod & Partners, Level 1, 215
Elizabeth Street, in Brisbane, Queensland, on Aug. 2, 2018, at
10:00 a.m.
Jonathan P McLeod and Bill Karageozis of Mcleod & Partners were
appointed as administrators of Clough Sales on July 23, 2018.
FLAVOURS FRUIT: First Creditors' Meeting Set for Aug. 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Flavours
Fruit & Veg Pty Ltd will be held at the offices of SV Partners
Level 17, 200 Queen Street, in Melbourne, Victoria, on Aug. 2,
2018, at 11:00 a.m.
Michael Carrafa and Richard John Cauchi of SV Partners were
appointed as administrators of Flavours Fruit on July 23, 2018.
GREENSILL FAMILY: First Creditors' Meeting Set for August 2
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Greensill
Family Investments Pty Ltd as trustee for The Clough Sales Trust
& The Greensill Business Trust, trading as L.J. Hooker New Farm,
will be held at the offices of Mcleod & Partners, Level 1, 215
Elizabeth Street, in Brisbane, Queensland, on Aug. 2, 2018, at
10:30 a.m.
Jonathan P McLeod and Bill Karageozis of Mcleod & Partners were
appointed as administrators of Greensill Family on July 23, 2018.
RADIOLOGY PROPERTY: First Creditors' Meeting Set for Aug. 2
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Radiology
Property Investments Pty Ltd will be held at Level 43, 600 Bourke
Street, in Melbourne, Victoria, on Aug. 2, 2018, at 3:00 p.m.
George Georges and John Lindholm of Ferrier Hodgson were
appointed as administrators of Radiology Property on July 23,
2018.
RAPPARA PTY: First Creditors' Meeting Set for August 2
------------------------------------------------------
A first meeting of the creditors in the proceedings of Rappara
Pty Ltd as trustee for The Clough Rent Roll Trust & LJH New Farm
Trust, trading as L.J. Hooker New Farm, will be held at the
offices of Mcleod & Partners, Level 1, 215 Elizabeth Street, in
Brisbane, Queensland, on Aug. 2, 2018, at 9:00 a.m.
Jonathan P McLeod and Bill Karageozis of Mcleod & Partners were
appointed as administrators of Rappara Pty on July 23, 2018.
=========
C H I N A
=========
CHANGCHUN CHANGSHENG: Risks Delisting Over Vaccine Fraud
--------------------------------------------------------
The Standard reports that the scandal-hit Chinese pharma company,
Changchun Changsheng Biotechnology Company risks receiving
warning to delist from the Shenzhen Stock Exchange if regulators
confirm any substantial illegal act or the investigation is
transferred to the public security department, according to an
announcement by the company.
The company receives subsidies from the state, the report says.
The Standard, citing a Chinese broadcaster CGTN report, relates
that the company said on July 23 it has received a notice from
the China Securities Regulatory Commission over suspected
malpractices.
According to the report, the Shenzhen Stock Exchange said July 13
it has taken regulatory measures against the company. The
Standard adds that the vaccine-maker said in a response that it
did not withhold information nor defer disclosure of the rabies
vaccine incident.
China's drug regulator said on July 22 that it has ordered the
company to stop production and launched an investigation into the
company over the illegal production of rabies vaccines for human
use, the Standard relays.
An official with China Food and Drug Administration said it found
that the company had fabricated production records and product
inspection records, arbitrarily changed process parameters and
equipment during its production of freeze-dried human rabies
vaccines, the Standard adds.
Changchun Changsheng Bio-technology Co., Ltd. engages in the
research, development, production and sale of human vaccine
products. The Company's main products include live attenuated
freeze-dried varicella vaccine, freeze-dried human rabies vaccine
(Vero cells), freeze-dried live attenuated hepatitis A vaccine,
influenza lysis vaccine, adsorption of cell-free diphtheria
combined vaccine and ACYW Group 135 meningococcal polysaccharide
vaccine. The Company distributes its products in domestic market
and to overseas markets.
CHINA HUARONG: Trying to Recall Some Loans as Cash Crunch Bites
---------------------------------------------------------------
Reuters reports that China Huarong Asset Management, one of four
state-backed so-called "bad banks" formed in 1999, has been
trying to raise cash since Lai Xiaomin resigned as chairman in
April amid a graft probe, the sources said.
According to Reuters, Huarong's attempts to call back loans shows
the extent of its liquidity woes. It has already begun divesting
equity stakes that were bought as part of a diversification push
and has also forced employees to take pay cuts, the report says.
Reuters relates that the asset manager is the latest major
Chinese company to struggle in the wake of allegations of
misconduct by its leader. Others include CEFC China Energy and
Anbang Insurance, both of which are now undergoing government
restructuring.
Reuters says the exact nature of the allegations against Lai
remain unknown, but sources with knowledge of the matter said the
investigation had slowed down operations at China's largest asset
management firm and forced it to be cautious about taking on new
business.
When a firm comes under investigation, "it's possible that the
efficiency of business will fall, which leads to a liquidity
squeeze," said Meng Shen, director of Chanson & Co, a boutique
investment bank, Reuters relays.
Shortly after the investigation became public, Huarong asked one
fund to return millions of dollars it invested only a few months
earlier, citing liquidity issues, Reuters relates citing one
person with knowledge of the matter. The fund is trying to
negotiate early payment of management fees in return for the
early termination, the source said.
And a multi-year loan of just under CNY2 billion ($296 million)
to a medium-sized developer made by Huarong via a Shanghai branch
of a trust firm this year is another deal the bad debt manager is
trying to exit, said a second person with direct knowledge,
relays Reuters.
Huarong has approached the developer directly and is currently
trying to negotiate an early exit, citing liquidity issues, said
the person, reports Reuters. Since the investigation, the trust
firm, which usually receives regular business from Huarong, has
received no new deals from the asset manager, he added.
In another instance, Huarong has been trying to offload some
loans in Hong Kong, including its portion in a two-year HK$5.81
billion syndicated loan to Huge Group Holdings Limited, a major
shareholder of China Grand Auto's, again citing liquidity
concerns, said two separate people with direct knowledge who have
been approached as buyers, Reuters relays.
The loan was drawn down in August last year, the people added.
Two other people have also been informed of Huarong's liquidity
concerns.
According to Reuters, the investigation by China's anti-
corruption watchdog into Huarong's ex-chairman Lai is expected to
finish this month, two people said. Senior bank regulatory
official Wang Zhanfeng was confirmed as Huarong's new chairman
last month, the report recalls.
At least two Huarong units in Hong Kong are seeking to reduce
staff costs by cutting some employees' pay by between 20 percent
and 65 percent and not paying bonuses, said two people, Reuters
reports.
And many mainland employees have been asked to take an 18 to 20
percent pay hit and what was a monthly bonus will become a
quarterly one, two other people with knowledge of the issue told
Reuters.
China Huarong Asset Management Co., Ltd., together with its
subsidiaries, provides various financial asset management
services.
GUIZHOU WUDANG: Fails to Meet Capital Requirements
--------------------------------------------------
Caixin Global reports that Guizhou Wudang Rural Commercial Bank
Co. Ltd. failed to meet capital requirements at the end of the
second quarter, according to its report released on July 23.
Caixin relates that the bank, which is based in Southwest China's
Guizhou province, is the latest in a surge of small rural
commercial banks to reveal its financial position is
deteriorating.
As of the end of June, the bank's capital adequacy ratio, tier-
one capital adequacy ratio and core tier-one capital adequacy
ratio were 1.41%, -1.36% and -1.36%, respectively, Caixin
discloses. All the indicators were lower than the minimum
regulatory requirements, which were 10.5%, 8.5% and 7.5%,
respectively, the report says.
Capital adequacy ratios are a measure of how much capital banks
must hold as a percentage of their risk-weighted assets, Caixin
notes.
SHANDONG HAIYOU: Files for Bankruptcy Amid Refiner Turmoil
----------------------------------------------------------
Reuters reports that Chinese independent refiner Shandong Haiyou
Petrochemical Group and a chemical trader have filed for joint
bankruptcy, according to a court filing, the latest sign of
deepening pain for the sector amid high oil prices and greater
regulatory scrutiny.
The companies registered their joint bankruptcy at a court in the
county of Juxian in Shandong province on July 16, Reuters relates
citing a court filing on a website run by China's Supreme Court.
"The two companies, which share highly similar business scope,
company structure, finance and assets, own assets that are
smaller than their debts and are unable to service their loans,
are applying for joint bankruptcy," the local court filing, as
cited by Reuters, said.
According to Reuters, smaller independent or "teapot" refiners
have enjoyed strong growth in recent years as China liberalized
oil imports to increase competition in a sector dominated by
state-owned giants, but their expansion has been curbed by
tighter conditions.
Shandong Haiyou Petrochemical, established in 2006, is the first
teapot refiner to file for bankruptcy in recent years, Reuters
notes. Its crude oil distillation unit with capacity of around
70,000 barrels per day has been shut since May. The other
company, Shandong Hongju New Energy Co, is a fuel and chemicals
dealer based in the same county and was set up in 2013.
SUNAC CHINA: Fitch Rates New USD Senior Notes 'BB-(EXP)'
--------------------------------------------------------
Fitch Ratings has assigned Sunac China Holdings Limited's (BB-
/Negative) proposed US dollar senior notes a 'BB-(EXP)' expected
rating. The notes are rated at the same level as Sunac'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.
Sunac's rating reflects Fitch's expectation that the company will
continue to delever in 2018, although the pace of deleveraging
depends on the company's investment plans. Sunac's management has
publicly committed to deleveraging and does not have pressure to
continue aggressive land banking, considering its ample land bank
of over 100 million square metres of gross floor area as of end-
2017, which allows for around five years of development. Fitch
will consider revising the Outlook to Stable if Sunac continues
to exercise prudent financial management and sustains leverage
below 50.0%.
KEY RATING DRIVERS
Improving Leverage: Sunac's leverage, as measured by net
debt/adjusted inventory with proportionate consolidation of joint
ventures and associates, was 45.7% as of end-2017, significantly
lower than the 63.4% before the 1H17 Wanda City project
acquisition. This significant deleveraging was due to strong
contracted sales and minimum landbanking activity. Sunac's
attributable contracted sales increased by 151%, to CNY266
billion, in 2017. Fitch expects the strong sales momentum to
continue in 2018, to achieve the company's full-year sales target
of CNY450 billion. Reported total contracted sales in 1H18
totalled CNY192 billion.
Greater Geographical Diversification: Sunac's geographical
diversification has improved, with concentration in the pan Bohai
Rim, Yangtze River Delta and Chengdu/Chongqing regions dropping
to 70% in 2017, from 90% in 2015. Concentration will fall further
following the Wanda City acquisition, as only five (Hefei, Wuxi,
Ji'nan, Chengdu and Chongqing) of the 13 projects are located in
these markets. Geographical diversification is increasingly
important, as each local government has implemented restrictive
home-purchase policies differently. Geographically concentrated
homebuilders in cities with tighter restrictions are experiencing
greater difficulty in generating consistent sales growth.
Strong Contracted Sales: Sunac reported stronger contracted sales
of CNY46 billion in June 2018, which is comparable with the
China's top-three homebuilders: China Vanke Co., Ltd.
(BBB+/Stable), Country Garden Holdings Co. Ltd. (BBB-/Stable) and
China Evergrande Group (B+/Positive). The higher sales value,
despite a fall in Sunac's average selling price, suggests it has
flexibility to generate sales from a greater geographical and
product spread, making it more likely that Sunac can improve
operational cash flow for deleveraging. EBITDA margin, including
proportional share of EBITDA from joint ventures and associates,
was 19% as of end-2017, or 32% if removing valuation gains from
acquired projects.
Lower Senior Note Subordination: Fitch estimates that the
liquidation value of Sunac's assets, including net inventory and
proportionate share of joint venture assets, improved by end-2017
from 1H17, providing better protection to senior unsecured bond
holders. This follows Sunac's lower-than-Fitch-expected land
acquisition costs after purchasing the Wanda City assets and
increased use of offshore senior unsecured debt in 2H17, which
saw the proportion of prior-ranking debt fall to 94% of total
debt by end-2017. The proportion of prior-ranking debt has
decreased further after the senior note issuance in April 2018.
DERIVATION SUMMARY
Sunac's homebuilding business scale, geographical
diversification, project execution record and churn rate are
comparable with 'BBB-' rated homebuilders, such as Country
Garden, and comparable with or superior to 'BB' rated
homebuilders, such as Beijing Capital Development Holding (Group)
Co., Ltd. (BBB-/Negative, standalone: BB/Negative). However,
Sunac's more volatile financial profile is more comparable with
lower-rated issuers, such as Greenland Holding Group Company
Limited (BB-/Stable, standalone: BB-) and Evergrande, even though
its 2017 leverage is lower than Greenland's and similar to
Evergrande. No Country Ceiling, parent/subsidiary or operating
environment aspects affect the rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Replenishment of land bank at the rate of 1.1x of
attributable contracted sales gross floor area to maintain
land bank life of five years
- Consolidated revenue at 60%-70% of attributable sales between
2017 and 2019
- Capex of CNY3 billion a year, mainly for Wanda City projects
- Contracted gross floor area to expand at 30% in 2018 and 10%
in 2019
- Average selling prices to stay below the current level of
CNY17,740 per square metre between 2017 and 2019
RATING SENSITIVITIES
The company's Issuer Default Rating is on Negative Outlook. Fitch
does not anticipate a rating upgrade. However, developments that
may lead to the Outlook being revised to Stable include:
- net debt/adjusted inventory sustained below 50.0% (2017:
45.7%)
- attributable contracted sales/adjusted inventory sustained
above 0.8x (2017: 0.7x)
- EBITDA margin, excluding the effect of revaluation of
acquisitions, sustained above 18%
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- net debt/adjusted inventory above 50.0% for a sustained
period
- attributable contracted sales/adjusted inventory below 0.8x
for a sustained period
- EBITDA margin, excluding the effect of revaluation of
acquisitions, below 18% for a sustained period
LIQUIDITY
Sufficient Liquidity: Fitch expects Sunac to maintain sufficient
liquidity for its operation and debt repayments, as contracted
sales are likely to show strong growth in 2018 to reach more than
CNY300 billion on an attributable basis. Sunac had a cash balance
of CNY97 billion, including restricted cash of CNY28 billion, as
at end-2017, sufficient to cover short-term debt of CNY79
billion.
=========
I N D I A
=========
A B CONVENTION: CRISIL Keeps B Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL has been consistently following up with A B Convention
for obtaining information through letters and emails dated
December 31, 2017 and June 29, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 A B Convention, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
A B Convention is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB Rating category or lower'.
Based on the last available information, the rating on bank
facilities of A B Convention continues to be 'CRISIL B/Stable
Issuer not cooperating'
A B Convention, incorporated in April 2014, is engaged in
hospitality services at Krishna (Andhra Pradesh). The company is
promoted by Mr Aravpally Bose and is currently engaged in setting
up a Marriage cum community hall at Krishna Districts.
ADARSH JAN: CRISIL Maintains B Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL has been consistently following up with Adarsh Jan Kalyan
Evam Shiksha Samiti (AJKESS) for obtaining information through
letters and emails dated December 31, 2017 and June 29, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund- 1 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING)
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 Adarsh Jan Kalyan Evam Shiksha
Samiti. This restricts CRISIL's ability to take a forward looking
view on the credit quality of the entity. CRISIL believes that
the information available for Adarsh Jan Kalyan Evam Shiksha
Samiti is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BB rating
category or lower.'
Based on the last available information, the rating on bank
facilities of AJKESS continues to be 'CRISIL B/Stable Issuer not
cooperating'
AJKESS, set up as a not-for-profit society, is managed by its
secretary Mr. P D Tripathi and president Mr. Rajdutt Tiwari.
Located in Lucknow district (Uttar Pradesh), the society is
engaged in various schemes operated by the state and central
governments in Lucknow and surrounding areas. The schemes include
providing hot cooked food in anganwadi centres under the scheme
of Integrated Child Development Services (ICDS) department, free
meals under the Mid-Day meal scheme, and other government-
mandated schemes. The society is also operating Adarsh Shiksha
Mandir School.
AKR IMPEXPRIVATE: ICRA Removes B Rating from Not Cooperating Cat.
-----------------------------------------------------------------
ICRA has removed its earlier rating of [ICRA]B(Stable)/[ICRA]A4
from the 'ISSUER NOT COOPERATING' category as AKR ImpexPrivate
Limited has now submitted its 'No Default Statement' ("NDS")
which validates that the company is regular in meeting its debt
servicing obligations. The company's rating was moved to the
'ISSUER NOT COOPERATING' category in June 2018.
ANUBHAV TRADING: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Anubhav
Trading'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:
-- INR80 mil. Fund-based limit migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 18, 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 2008, Anubhav Trading is a distributor of
electronic appliances of various companies in Bhagalpur, Bihar.
AR LANDMARK: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned AR Landmark LLP
(ARL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is
Stable.
The instrument-wise rating action is:
-- INR90 mil. Proposed long term loan* assigned with Provisional
IND B+/Stable rating.
* The rating is provisional and shall be confirmed upon the
sanction and execution of loan/transaction documents for the
above instrument to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect the nascent stage of ARL's under-construction
residential project, indicating its exposure to time and cost
overruns. The project is scheduled to be completed by FYE21;
however, the construction is yet to commence because of a delay
in plan sanctioning and registration under the Real Estate
(Regulation and Development) Act, 2016.
The ratings also reflect a high financial risk faced by ARL. The
total project cost is estimated at INR208.5 million, which will
be funded by a term loan of INR90 million, a partners'
contribution of INR90.2 million and a customer advance of INR28.3
million. As of June 2018, the partners had contributed INR45.0
million. Ind-Ra expects ARL's cash debt service coverage ratio to
be 3.13x-20.31x over the project life, subject to timely sanction
and disbursement of term loan and receipt of advances.
The ratings, however, are supported by the partners' track record
of seven years in successful project completion in the Pune real
estate market.
Moreover, the ratings are supported by the fact that ARL is
promoted by a well-known group, Raskar Group, which has been
executing real estate projects in Pune since 2010. The promoter
has successfully constructed projects with a space of over 0.5
million square feet in Pune.
RATING SENSITIVITIES
Negative: Lower-than-expected sales volume, lower realization
from bookings or significant time or cost overruns could result
in a downgrade.
Positive: Fast bookings, leading to customer advances, along with
timely sanction of the term loan and project execution without
additional debt, could result in an upgrade.
COMPANY PROFILE
Registered in September 2017, ARL is undertaking the construction
of a residential real estate project, Vetro Apartments, in
Wadgaon Sheri, Pune.
AVIS INDIA: CRISIL Keeps B+ Rating in Not Cooperating Category
--------------------------------------------------------------
CRISIL has been consistently following up with Avis India (Avis)
for obtaining information through letters and emails dated
December 31, 2017 and June 29, 2018, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
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 Avis India. This restricts
CRISIL's ability to take a forward looking view on the credit
quality of the entity. CRISIL believes that the information
available for Avis India is consistent with 'Scenario 1' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of Avis continues to be 'CRISIL B+/Stable Issuer not
cooperating'
Avis, based in Pune (Maharashtra), was established as a
proprietorship concern in 1997 by Mr. Vijay Kulkarni. It
undertakes civil construction works such as setting up of sugar
factories, power projects for sugar factories, and water
treatment plants largely in Maharashtra,. Its day-to-day
operations are managed by Mr. Vijay Kulkarni.
AYURSUNDRA HEALTH: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Ayursundra Health
Care Private Limited (AHPL) for obtaining information through
letters and emails dated December 31, 2017 and June 29, 2018,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 0.21 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 45.39 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 Ayursundra Health Care Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Ayursundra Health Care Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of AHPL continues to be 'CRISIL B/Stable Issuer not
cooperating'
AHPL, incorporated in 2007, commenced commercial operations in
October 2010. It manages a diagnostic centre that provides non-
invasive diagnostic and other healthcare services in Guwahati.
AHPL has also been operating a 12-bed cardiac unit with an
intensive care facility since April 2012. The company is setting
up a multi-specialty hospital and rejuvenation centre, which is
expected to become operational by January 2016. It is promoted by
Mr. Simanta Das and Dr. Abhijit Hazarika.
BMW ENTERPRISES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed BMW Enterprises'
(BMWE) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR420 mil. Fund-based working capital limit affirmed
IND BB/Stable rating; and
-- INR20 mil. Non-fund-based working capital limit affirmed
IND A4+ rating.
KEY RATING DRIVERS
The ratings continue to reflect BMWE's medium scale of
operations. The ratings also reflect the company's continued
moderate credit profile, despite it being the sole project
distributor of Tata Steel Limited's ('IND AA'/RWE) thermo-
mechanically treated bars in Bihar, due to the trading nature of
operations.
Provisional results for FY18 indicate around 12.7% yoy increase
in the revenue to INR2.5 billion (FY17: down 6.5% yoy), due to an
improvement in both sales volume and realization. However, the
profitability and credit metrics for FY18 deteriorated due to an
increase in cost of purchase of raw materials. In FY18, the
return on capital employed of the company was 12% (FY17: 14%) and
EBITDA margins remained average, declining to 2.9% (3.9%),
leading to EBITDA interest coverage (operating EBITDA/gross
interest expense) declining to 1.5x (1.8x) and net leverage (net
debt/ operating EBITDA) increasing to 6.5x (5.2x).
The ratings also reflect the company's tight liquidity with
average working capital utilization for the 12 months ended June
2018 being around 99.65%.
The ratings remain constrained by the proprietorship nature of
the organization.
The ratings, however, are supported by the support extended by
the BMW Group in the form of unsecured loans (FY18: INR54
million) and a letter of comfort provided by the group's flagship
entity BMW Ventures Ltd, which is under the same management and
operates in the same line of business as BMWE. Also, BMWE's
management has a two-decade-long experience in the steel
industry.
RATING SENSITIVITIES
Positive: A sustained improvement in the liquidity and EBITDA
interest coverage could lead to a positive rating action.
Negative: Sustained deterioration in the EBITDA interest coverage
could lead to a negative rating action.
COMPANY PROFILE
Started in 2005, BMWE has a corporate office in Kolkata and
registered office in Patna. It has a 35,000 sf stock yard and
60MT capacity weigh bridge in Patna. Its proprietor is Jai
Basukinath Traders Private Limited, which has been a consignment
agent for Tata Steel for two decades.
DAISY INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL has been consistently following up with Daisy Industries
(DI) for obtaining information through letters and emails dated
December 31, 2017 and June 29, 2018, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 Daisy Industries. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Daisy Industries is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of DI continues to be 'CRISIL B/Stable Issuer not
cooperating'
Established in 2012 as a proprietorship firm by Mr. Ravi Agrawal,
DI manufacturers HDPE fabrics, water proof canvas, tarpaulins,
and various types of tents at its facility in Umbergaon, Gujarat.
DBM GEOTECHNICS: CRISIL Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL has been consistently following up with DBM Geotechnics
and Constructions Private Limited (DBM) for obtaining information
through letters and emails dated December 31, 2017 and June 29,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 122 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 100.5 CRISIL D (ISSUER NOT
COOPERATING)
Funded Interest 9.09 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
Proposed Long Term 42.82 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Working Capital 10.59 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
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 DBM Geotechnics and
Constructions Private Limited. This restricts CRISIL's ability to
take a forward looking view on the credit quality of the entity.
CRISIL believes that the information available for DBM
Geotechnics and Constructions Private Limited is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of DBM continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'
DBM, incorporated in 1990, specialises in offering geotechnical
services, foundation engineering services, and marine
construction activities. It is promoted by Mr. DB Mahajan, a
geotechnical engineer. DBM offers services such as geotechnical
investigation (land and marine), piling and micro piling,
construction of diaphragm wall, construction of berth/jetties,
pre-stressed rock anchoring, and topographic/hydrographic survey.
DCR INFRA: ICRA Lowers Rating on INR6.50c Term Loan to D
--------------------------------------------------------
ICRA has revised the long-term rating to [ICRA]D from [ICRA]B+
for the INR6.50-crore long-term fund-based term loan facility of
DCR Infra.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 6.50 [ICRA]D; revised from
Term Loan [ICRA]B+ (Stable)
Rationale
The rating revision takes into account the delays in meeting the
scheduled debt service obligations due for the month of June 2018
by DI owing to cash-crunch emanating from lower-than-expected
sales bookings.
Credit weaknesses
Recent delays in debt servicing: There has been delays in debt
servicing by DCR infra for the month of June 2018, on account of
slow bookings. The interest & debt obligation for the month of
June 2018 has not been paid yet.
Established in January 2014, DCR Infra (DI) is a partnership firm
to build, construct and sell - commercial complex 'Gokul
Solitaire' at Vesu in Surat. Mr. Dharmesh Patel, Mr. Chetan Mania
and Mr. Ronak Patel are the partners of the firm, who have more
than one and half decade of experience in the real estate sector.
The project is located on a plot admeasuring 2419 sq. mtr, and
has 125 shops with a total saleable area of 85,698 sq. ft.
DENZONG ALBREW: CRISIL Maintains B- Rating in Not Cooperating
-------------------------------------------------------------
CRISIL has been consistently following up with Denzong Albrew
Private Limited (DAPL) for obtaining information through letters
and emails dated December 31, 2017 and June 29, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Term Loan 17 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
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 Denzong Albrew Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Denzong Albrew Private Limited
is consistent with 'Scenario 1' outlined in 'Framework for
Assessing Consistency of Information with CRISIL BB rating
category or lower.
Based on the last available information, the rating on bank
facilities of DAPL continues to be 'CRISIL B-/Stable Issuer not
cooperating'
DAPL was incorporated in 1999. The promoter-directors, Mr Rishi
Kumar Mittal and his brother, Mr Sanjay Mittal, have been in the
liquor manufacturing business in North Eastern India since the
past two decades. DAPL commissioned its beer plant in June 2011,
with a production capacity of 150,000 hecto litres per annum
(hlpa). The manufacturing unit produces mild (lager) and strong
beer using malt and hops as primary raw materials. The company
has a memorandum of understanding (MOU) with UBL to manufacture
and bottle beer under the principal's brands Kingfisher and
Kalyani Black Label.
DESAI TEXTILES: CRISIL Keeps D Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL has been consistently following up with Desai Textiles
(DT) for obtaining information through letters and emails dated
December 31, 2017 and June 29, 2018, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.88 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 4.62 CRISIL D (ISSUER NOT
COOPERATING)
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 Desai Textiles. This restricts
CRISIL's ability to take a forward looking view on the credit
quality of the entity. CRISIL believes that the information
available for Desai Textiles is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of DT continues to be 'CRISIL D Issuer not
cooperating'.
Set up in 1991, DT is a partnership firm based in Surat
(Gujarat), promoted by Mr. Pankajbhai Arvindlal Desai and Mr.
Chetankumar Arvindlal Desai. The firm manufactures and markets
yarn and grey fabric and undertakes sizing of beam.
EMAAR DIAMONDS: CRISIL Lowers Rating on INR9cr Cash Loan to B
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term facility of
Emaar Diamonds Private Limited (EDPL) to 'CRISIL B/Stable' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.0 CRISIL B/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term 4.5 CRISIL B/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
The downgrade reflects EDPL's subdued business risk profile due
to decline in revenue and profitability in fiscal 2018. Further,
inventory holding period has remained high as on March 31, 2018,
leading to large working capital requirement and consequently,
stretched liquidity.
The rating continues to reflect the modest scale of operations in
the intensely competitive diamond industry and large working
capital requirement. These weaknesses are partially offset by the
extensive experience of the promoters and their funding support.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Business risk profile is
constrained by modest scale of operations as reflected in revenue
of INR7.8 crore in fiscal 2018 (INR24.5 crore a year earlier).
Intense competition constrains the pricing flexibility of the
company. Profit margin dipped to 3.8% for fiscal 2018 from 6.64%
in fiscal 2017 and is likely to remain at similar levels over the
medium term.
* Large working capital requirement: Operations are working
capital intensive as reflected in gross current assets estimated
at 887 days as on March 31, 2018 driven by sizeable
inventory'250-350 days in the three fiscals through 2017.
However, as on March 31, 2018, inventory worth INR17 crore was
maintained, in-line with the previous year, leading to high bank
limit utilisation of ~93% over the last 12 months.
Strengths
* Extensive experience of the promoters: Benefits from the
promoters' experience of over three decades and established
relationship with a diversified customer base across Mumbai, USA,
Europe, Japan, and Australia should support the business.
* Moderate capital structure: Financial policy is conservative as
reflected in peak total outside liabilities to tangible networth
ratio over the three years through March 2018, being moderate, at
1.86 times as on March 31, 2017. The ratio is expected to remain
at 1.5-1.8 times over the medium term. Capital structure is
supported by need-based funding from the promoters in the form of
unsecured loans, outstanding at INR2.6 crore as on March 31,
2018.
Outlook: Stable
CRISIL believes EDPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if revenue increases and profitability is stable, or
if working capital management is efficient. The outlook may be
revised to 'Negative' if decline in profitability, or stretch in
working capital cycle weakens capital structure.
Mumbai-based EDPL, managed by Mr Anoop Mehta was set up in 1986
as a wholly-owned subsidiary of Mohit Diamonds Pvt Ltd (MDPL).
EDPL trades in rough diamonds while MDPL trades in cut and
polished diamonds and also has a jewellery division for
manufacturing and exports of diamond studded gold jewellery.
ENCORP POWERTRANS: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Encorp Powertrans
Private Limited (Encorp) for obtaining information through
letters and emails dated December 31, 2017 and June 29, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 Encorp Powertrans Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Encorp Powertrans Private
Limited is consistent with 'Scenario 1' outlined in 'Framework
for Assessing Consistency of Information with CRISIL BB rating
category or lower.
Based on the last available information, the rating on bank
facilities of Encorp continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Encorp was set up in 2010 by Mr. Rahul Nowal and his brother Mr.
Vinay Nowal. The company is engaged in fabrication of power
transmission towers. It also undertakes galvanisation work for
fabricated steel structures. The company's manufacturing facility
is at Tarapur (Maharashtra).
EXCELLENT POWER: CRISIL Keeps B Rating to in Cooperating Category
-----------------------------------------------------------------
CRISIL has been consistently following up with Excellent Power
Cable Private Limited (EPCPL) for obtaining information through
letters and emails dated December 31, 2017 and June 29, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 Excellent Power Cable Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Excellent Power Cable Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB rating category or lower.'
Based on the last available information, the rating on bank
facilities of EPCPL continues to be 'CRISIL B/Stable Issuer not
cooperating'
EPCPL, incorporated in 2006 in Delhi by members of the Aggarwal
family, manufactures ACSR conductors and aluminium wires. The
company is being promoted by Mr. Moolchand Aggarwal and his
family members.
GMW ENGINEERS: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated GMW Engineers
Private Limited's (GEPL) 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:
-- INR17 mil. Fund-based facilities migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR105 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR3 mil. Term loan due on June 2019 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPEPRATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 7, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1986, GMW Engineers installs hydro mechanicals
equipment such as hydel gates, stop log gates, piping work and
penstock piping at power projects.
GURU NANAK: CRISIL Maintains B+ Rating in Cooperating Category
--------------------------------------------------------------
CRISIL has been consistently following up with Guru Nanak
International Private Limited (GNIPL) for obtaining information
through letters and emails dated December 31, 2017 and June 29,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 1.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
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 GNIPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on GNIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of GNIPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'
GNIPL was incorporated in 2012, promoted by the Delhi-based Batra
family. It sells women's apparel including bridal-wear at its
showroom in Rajouri Garden (Delhi) under the brand, Frontier
Bazar.
H. M. AND COMPANY: CRISIL Keeps B Rating in Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with H. M. and Company
Medisales Private Limited (HM) for obtaining information through
letters and emails dated December 31, 2017 and June 29, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 HM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of HM continues to be 'CRISIL B/Stable Issuer not
cooperating'
Incorporated in June 2011, HM commenced commercial operations in
November 2011. The company is a wholesale distributor of
pharmaceutical formulations in the form of tablets, syrups, and
injectibles in the Pune Municipal Corporation and Pimpri
Chinchwad Municipal Corporation areas, and in Pune district. HM
is a wholesale distributor for 33 pharmaceutical companies
including Glaxo Pharmaceuticals Ltd, Pfizer Ltd, and Aventis
Pharma Ltd. It distributes over 1500 products to more than 1000
customers comprising chemists, hospitals, nursing homes,
institutes, and doctors.
HARI OM: CARE Lowers Rating on INR10cr Long-Term Loan to B
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hari Om Retail Private Limited (HOR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE B; ISSUER NOT COOPERATING;
Facilities Revised from CARE B+; on the
basis of best available
information
CARE has been seeking information from HOR to monitor the
rating(s) vide e-mail communications/letters dated June 4, 2018,
May 29, 2018, May 16, 2018 etc. and numerous phone calls.
However, despite our repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines CARE has reviewed the rating
on the basis of the publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating.
CARE's rating on Hari Om Retail Private Limited bank facilities
will now be denoted as CARE B; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised by taking into account no due-
diligence conducted due to non-cooperation by hari Om Retail
Private Limited. Further, the ratings take into account modest
scale of operations, weak financial risk profile and HOR's
presence in highly competitive industry and low entry barriers.
However the risk is mitigated by experienced promoters and
comfortable working capital cycle.
Detailed description of the key rating drivers
At the time of last rating on April 10, 2017. The following were
the rating strengths and weaknesses (Updated for the
information available from the registrar of companies).
Key Rating Weaknesses
Modest scale of operations: The scale of operations of the
company continues to remain modest which limits the company's
financial flexibility in times of stress and deprives it from
scale benefits.
Weak Financial risk profile: The profit margins of the company
have historically been on the lower side due to trading nature of
the business and intense market competition in the industry.
Furthermore, the PAT margin also stood weak for the past 3 years
(FY15-FY17) (refers to the period April 1 to March 31) owing to
high financial expenses. The capital structure of the company
stood leveraged on account of high dependence on working capital
bank borrowings as on balance sheet date coupled with low net
worth base. Furthermore, due to low profitability margin and high
interest cost the coverage indicators remained weak.
Highly competitive industry & low entry barriers: The trading
industry is highly fragmented with more than two-third of the
total number of players being unorganized. Due to low entry
barriers in the industry and low value added nature of products,
high competition is the inherent risk associated with the
industry.
Key Rating Strengths
Experienced promoters: HOR is being managed by Mr Gaurav Juneja
and Mr Sunil Juneja. Mr Gaurav Juneja has around a decade of
experience in trading of electronic products through his
association with this entity and various other entities engaged
in similar business. He handles the overall operations of the
company. Mr Sunil Juneja has an experience of around three decade
through this entity and several other entities engaged in similar
business.
Comfortable working capital cycle: The overall operating cycle of
the company remained comfortable over the last three financial
years (FY14-FY16). The operating cycle of the company stood
comfortable days for FY16. Being a trading firm, HOR is required
to maintain adequate inventory in the form of finished goods to
cater the immediate demand of the customers, resulting in a
moderate inventory holding period during FY16. The company
normally receives and makes payment in cash or advance
basis comfortable collection period and payable period in FY16.
HOR was incorporated in 2011 by Mr Gaurav Juneja, Mr Sunil Juneja
and Ms Seema Juneja. The company is engaged in retail trading of
electronic products such as LED, AC, refrigerator, washing
machine, mobile phones, etc. HOR has 4 retail outlets/showrooms
located at Ashok Vihar, Lajpat Nagar, Kamla Nagar, Rohini and
Kingsway Camp, Delhi. The company procures goods from
distributors and also directly from companies.
HEMNIL METAL: CRISIL Keeps D Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has been consistently following up with Hemnil Metal
Processors Private Limited (HMPPL) for obtaining information
through letters and emails dated December 31, 2017 and June 29,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 9.62 CRISIL D (ISSUER NOT COOPERATING)
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 HMPPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on HMPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of HMPPL continues to be 'CRISIL D Issuer not
cooperating'
Incorporated in 1996, HMPPL cuts coils or sheets in sizes as
specified by customers, mainly from the automobile industry.
Operations are managed by key promoter, Mr. Hemant Mehta.
HERCULES AUTOMOBILES: Ind-Ra Hikes LongTerm Issuer Rating to BB-
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Hercules
Automobiles International Private Limited's (HAIPL) Long-Term
Issuer Rating to 'IND BB-' from 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR280 mil. Fund-based working capital limits upgraded with
IND BB-/Stable/IND A4+ rating; and
-- INR125.97 mil. (reduced from INR150 mil.) Term loan due on
December 2020-March 2024 upgraded with IND BB-/Stable
rating.
KEY RATING DRIVERS
The upgrade reflects a sustained improvement in HAIPL's EBITDA
margins in FY18, leading to an improvement in the credit metrics.
The EBITDA margin improved to 3.0% in FY18 (FY17: 2.7%, FY16:
1.5%) on account of an increase in dealer margins. Consequently,
net leverage (adjusted net debt/operating EBITDAR) improved to
6.1x in FY18 (FY17: 6.2x, FY16: 12.3x) and interest coverage
(operating EBITDA/gross interest expense) to 1.5x (1.4x, 0.5x).
Despite the improvement, the margins and metrics were modest with
return on capital employed of 8.83%. FY18 financials are
provisional in nature.
However, the ratings remain constrained by the company's tight
liquidity position as indicated by 97.6% average peak use of the
working capital facilities during the 12 months ended June 2018.
However, the promoters' ability to infuse funds as when required
provides some comfort.
The ratings are supported by HAIPL's large scale of operations.
Gross revenue improved in FY18; however at the net level it
declined 13.5% yoy to INR2,405.3 million because of the
implementation of the Goods and Services Tax.
The ratings continue to be supported by the promoters more than a
decade-long experience as an authorized dealer of Maruti Suzuki
India Limited in Kerala.
RATING SENSITIVITIES
Positive: A sustained improvement in the credit metrics coupled
with an improvement in the liquidity position could lead to a
positive rating action.
Negative: A further stress on the liquidity position coupled with
deterioration in the credit metrics could lead to a negative
rating action.
COMPANY PROFILE
Incorporated in 1999, HAIPL is the authorized dealer of Maruti
Suzuki India at Alappuzha and Thiruvananthapuram in Kerala. It is
engaged in the sale of new cars, pre-owned cars (under True Value
outlets), spare parts and accessories, and servicing. The company
operates two showrooms, 21 retail outlets, 12 service centers,
four True Value outlets and six simulated Maruti driving schools.
INTIMATE JEWELS: CRISIL Maintains B Rating in Not Cooperating
-------------------------------------------------------------
CRISIL has been consistently following up with Intimate Jewels
(P) Ltd. (IJPL) for obtaining information through letters and
emails dated December 31, 2017 and June 29, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 7.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
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 IJPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on IJPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of IJPL continues to be 'CRISIL B/Stable Issuer not
cooperating'
IJPL was established in 1997 by Delhi-based Sharma family. The
company retails gold, diamond, precious stone-studded gold,
polka, and Italian jewellery through its showroom in Kucha
Mahajani, Chandni Chowk (New Delhi). The company is managed by
Mr. Prem Prakash Sharma and his son, Mr. Gaurav Sharma.
JAMNA METAL: CRISIL Maintains C Rating in Not Cooperating
---------------------------------------------------------
CRISIL has been consistently following up with Jamna Metal Co.
(JMC) for obtaining information through letters and emails dated
December 31, 2017 and June 29, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.67 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 4 CRISIL C (ISSUER NOT
COOPERATING)
Proposed Long Term 10.01 CRISIL C (ISSUER NOT
COOPERATING)
Term Loan 1.82 CRISIL C (ISSUER NOT
COOPERATING)
Working Capital 5.50 CRISIL C (ISSUER NOT
Term Loan COOPERATING)
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 JMC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JMC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of JMC continues to be 'CRISIL C/CRISIL A4 Issuer not
cooperating'
JMC commenced operations in 1997 as Shree Jamna Metal Works, a
proprietorship concern of Mr Kishan Chand Bansal. The firm
manufactures galvanised steel trays used in the power sector as a
base for laying power transmission cables.
JAY BAJRANG: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------
CRISIL has been consistently following up with Jay Bajrang Cotton
Industries (JBCI) for obtaining information through letters and
emails dated December 31, 2017 and June 29, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 1.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
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 JBCI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JBCI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of JBCI continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Promoted in June 2013, JBCI has set up a ginning and pressing
unit having a capacity to produce 20,000 to 25,000 bales per
annum at Morbi in Rajkot (Gujarat). The unit commenced operations
from April 2014.
JAYABHERI AUTOMOTIVES: CRISIL Keeps B- Rating in Not Cooperating
----------------------------------------------------------------
CRISIL has been consistently following up with Jayabheri
Automotives Private Limited (JAPL) for obtaining information
through letters and emails dated December 31, 2017 and June 29,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Term Loan 11.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
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 JAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of JAPL continues to be 'CRISIL B-/Stable Issuer not
cooperating'
Incorporated by the Duggirala and the Maganti families in 2011,
JAPL is an authorised dealer for Maruti Suzuki India Ltd's
passenger cars and multi-utility vehicles. The company operates
three car showrooms and four workshops in Visakhapatnam,
Vizianagaram, and Narsipatnam (all in Andhra Pradesh).
KAJJEHALLY ESTATE: CARE Lowers Rating on INR19cr LT Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kajjehally Estate, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 19.00 CARE B+; ISSUER NOT COOPERATING;
Facilities Revised from CARE BB; Issuer Not
Cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Kajjehally Estate to
monitor the rating vide e-mail communications/letters dated
May 11, 2018, May 10, 2018, July 2, 2018 and numerous phone
calls. However, despite our repeated requests, the firm has not
provided the requisite information for monitoring the rating. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines, the rating on Kajjehally
Estate's bank facilities will now be denoted as CARE B+; Issuer
not Cooperating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
Detailed description of the key rating drivers
At the time of last rating on March 22, 2017 the following were
the rating strengths and weaknesses:
Key Rating Weakness
Constitution of the entity: Kajjehally is a proprietorship
concern and is managed by the sole proprietor: Mr. S.
Vasudevanwith adequate support from his wife Mrs. PriyaVasudevan.
Constitution of the entity as a proprietorship concern with
inherent risk of withdrawal of capital in time of contingency
coupled with restricted access to funding and risk of dissolution
on account of poor succession planning restricts the business
risk profile of the entity.
Small scale of operations: Though the entity is in operation of
about eight years its scale of operations remained small over the
years. The entity has achieved a PAT of INR3.64 crore on total
operating income of INR5.14 crore in FY14 with total capital
employed of INR25.38 crore as on March 31, 2014. Small scale of
its operationsdeprives it from scale benefits.The entity has
achieved a PBT of INR4.93 crore on turnover of INR6.75 crore
during FY15 (Provisional).The entityhas experienced a growth in
its total operating income (TOI) at a compounded annual growth
rate (CAGR) of 4.47% during the last three years (FY12-FY14) with
a Y-o-Y growth of about 7.98%.
Susceptible to vagaries of nature: Kajjehally's operations are
seasonal in nature as the entity is in agro based (firming)
business which is dependent on vagaries of nature. Adverse
natural events have negative bearing on the productivity in the
region and accordingly Kajjehally is exposed to vagaries of
nature.
Labour intensive nature of business: Employee cost accounted for
about 65.0% of total cost of sales in FY14 and was major cost
component in the entire cost structure of the entity. The
perennial nature of the industry has been highly labor intensive,
entailing sizeable expenditure on employees (by way of salaries &
wages, various employee welfare facilities, etc.). Though,
Kajjehally has not experienced any labor problem, it remains a
key factor in the smooth running of the business.
Project Risk: Kajjehally is currently developing the estate by
constructing buildings, roads, water tanks etc. at an aggregate
cost of INR22.0 crore, being financed at a debt equity ratio of
1.44:1. As on March 31, 2015, the entity had incurred a cost of
INR16.6 crore (about 75.32% of the total project cost) on the
project funded through term loan of INR9.0 crore and rest by
promoter's contribution. The financial closure of the project has
already been achieved. The entire project is expected to complete
by August, 2015.
Elongated operating cycle: The overall operations of Kajjehally
are working capital intensive as reflected by its elongated
working capital cycle at 449 days during FY14. During FY14, the
working capital cycle of the entity elongated as against 350 days
in FY13 due to increase in inventory period days. Inventory
holding period generally remains high in this business as its
products are seasonal but are consumed throughout the year and
are thus required to be stored properly. Furthermore, the entity
also
holds the stock till the time the prices are high in order to be
makehigh profits. Furthermore, average cash credit utilization
for the last four month period ended March 31, 2015remained at
about 90-95%.
High repayment obligation: The overall credit risk profile of the
entity is restricted due to its high debt repayment obligations.
Higher dependence on external funds for developing of the estate
resulted in high repayment obligation for the company. The
current ratio of the entity remained below unity as on March 31,
2014 mainly owing to substantial amount of current portion of
term loan repayment obligation. Excluding, the current portion,
the current ratio remained satisfactory at 1.73 times in FY14.
Key Rating Strengths
Experienced proprietor: Kajjehally is promoted and managed by Mr.
S. Vasudevan (B.Arch., aged about 48years). He is well assisted
by his wife Mrs Priya Vasudevanin managing the day-to-day affairs
of the business. Mr. S. Vasudevan is having more than two and a
half decade of experience in the real estate business through
Ozone Group based in Bangalore; however has about eight
years of experience in the relevant line of business.
Healthy profitability, comfortable capital structure and
satisfactory debt service coverage indicators: The operating
margin of the entity remained healthy during the past years in
the range of 53.70% to 76.62% with an improvement in FY14 on the
back of higher absorption of fixed overheads. The PAT margin of
the entity also moved in tandem with the PBILDT margin and
remained healthy in the range of 44.30% to 70.82% over the past
years.
The entity has a comfortable capital structure as indicated by
the comfortable debt-equity and overall gearing ratio at 0.16x
and 0.22x respectively as on March 31, 2014. The leverage ratios
have improved as on March 31, 2014 on the back of schedule
repayment of term loans and accretion of profit to reserves. The
debt service coverage indicators of the entity remained
comfortable with satisfactory.
Total debt to GCA at 1.27years and comfortable interest coverage
ratio at 13.22 times in FY14. The liquidity position of the
entity as reflected by the current ratio remained below unity as
on March 31, 2014 owing to high current portion of long term
debt. Excluding, the current portion, the current ratio remained
satisfactory at 1.73 times in FY14.
Kajjehally Estate (KJE), a proprietorship entity, was established
in 2007 by Mr. S. Vasudevan of Bangalore. Since inception, the
entity has been engaged in cultivation of plants like coffee,
pepper, cardamom, orange, vanilla, areca, timber, silver oak etc.
at its estate situated at 20Kms from Mudigere of Chikmagalur
district in Karnataka. The aggregate area available for
cultivation is 350acres; of which, the present area under
cultivation is 330 acres. KJE is currently developing the estate
at an aggregate cost of INR22.0 crore, being financed at a debt
equity ratio of 1.44:1.
The day-to-day affairs of the entity are looked after by Mr. S.
Vasudevan with adequate support from her wife Mrs.
PriyaVasudevan.
KIRATPUR NER: ICRA Lowers Rating on INR1484.76cr Loan to D
----------------------------------------------------------
ICRA has downgraded the long-term rating outstanding on the
INR1484.76 crore term loans of Kiratpur Ner Chowk Expressway
Limited to [ICRA]D from [ICRA]BBB with Negative outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 1484.76 [ICRA]D; Downgraded from
Term Loan [ICRA]BBB (Negative)
Rationale
The rating revision takes into account recent irregularities in
debt servicing by the company. ICRA notes that the company has
initiated the termination of the concession agreement on account
of delay in handing over the ROW by the authority. There were
significant delays in execution of the project owing to delays in
receipt of ROW, resulting in huge project cost over-run, due to
which the company was dependent on timely funding support from
promoters for debt servicing. However, the promoter has not made
available the required funds in June 2018.
Credit weaknesses
Recent delays in debt servicing: There has been delays in debt
servicing by the company in absence of timely funding support
from promoters. The interest & debt obligation for the month of
June 2018 has not been paid yet.
Incorporated on February 12, 2012, Kiratpur Ner Chowk Expressway
Limited (KNCEL) is a wholly-owned subsidiary of IL&FS
Transportation Networks Limited (ITNL, rated [ICRA]A-
&/[ICRA]A2+&) undertaking the widening and realignment
from existing two lanes to four lanes of Kiratpur to Ner-Chowk
Section of NH-21 from kilometre (km) 73.200 to km 186.500 in
Himachal Pradesh with a total project stretch of 84.38 km. The
project was awarded by the National Highway Authority of India
(NHAI) in FY2012 through a competitive bidding process under
National Highway Development Programme (NHDP) Phase III on
Design, Build, Finance, Operate, Transfer (DBFOT) basis. The
project stretch connects Northern and Southern Himachal Pradesh
and acts as a key connection for the passenger and freight
traffic passing through a number of major districts like
Rupanagar, Mandi and Bilaspur in Punjab and Himachal Pradesh. The
project is expected to commission tolling operations from March
2018.
KIRTIMAN CEMENTS: CARE Lowers Rating on INR27cr LT Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kirtiman Cements & Packagings Industries Limited (KCPIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 27.00 CARE B; ISSUER NOT COOPERATING;
Facilities Revised from CARE B+; Issuer
not cooperating
Detailed Rationale and key rating drivers
CARE has been seeking information from KCPIL to monitor the
rating(s) vide e-mail communications/letters dated June 1, 2018,
May 29, 2018, May 16, 2018 etc. and numerous phone calls.
However, despite our repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating Kirtiman Cements&
Packagings Industries Limited bank facilities will now be denoted
as CARE B; ISSUER NOT COOPERATING/CARE A4; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).
The rating has been revised by taking into account non-
availability of information and no due-diligence conducted due to
non-cooperation by Kirtiman Cements& Packagings Industries
Limited with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on April 26, 2017, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Modest scale of operations: The total operating income of the
company continues to remain modest which inherently limits the
company's financial flexibility in times of stress and deprives
it of scale benefits.
Low profitability margins: Profitability margins continue to
remain low for FY16 (refers to the period April 1 to March 31)
owing to trading activity which inherently have lower
profitability margin.
Deterioration in capital structure and coverage indicators: As on
March 31, 2016, despite infusion of funds by the directors and
accretion of profits to reserves, the capital structure
deteriorated owing to higher debt levels as compared to tangible
net worth. Furthermore, coverage indicators also deteriorated
mainly on account of higher debt levels consequently resulting
into higher interest cost.
Elongation of operations cycle: The operating cycle of the
company elongated mainly on account of higher average inventory
holding period in FY16. The company normally receives credit
period of 10-15 days and gives a credit of around one month to
its customers. The working capital needs being largely met
through bank borrowings which resulted into 100% utilization of
the working
capital limits during the 12 months ended March 2017.
Susceptibility of margins to volatile raw material prices: As the
primary raw material PP granules, which is a crude oil derivative
and its prices remain highly volatile. Therefore, the operating
margin of the company remains susceptible to any sharp movement
in raw material prices. However, the company was able to pass on
the increase in the prices to the end customers to some extent,
as prices were negotiated monthly on bilateral basis.
High degree of competition in woven sacks industry leading to low
bargaining power: The Indian flexible packaging industry is
highly fragmented on account of the low capital intensity and
technology
requirements, easy availability of raw materials, low entry
barriers and small gestation period. The intense industry
competition will continue to exert pricing pressures on KCPL.
Key Rating Strengths
Experience of the promoter in packaging industry: Mr Ashwani
Kumar Oberoi, Managing Director and promoter of the company, has
more than 25 years of experience in the manufacture of poly-woven
sacks and packaging industry. The promoter look after day-to-day
operations of the company and they are assisted by team of
experienced professionals.
Established marketing arrangement and customer base: KCPIL has
well-established marketing arrangements through dealers. The
manufacturing is usually order backed with orders in hand for one
to two months. The company also manufactures in addition to the
orders received for its general products. Furthermore, the
customer base of the company mainly comprises cattle feed,
poultry feed manufacturers and vegetable produce companies,
cement manufacturers and other agro allied industries.
Incorporated in 1996, Kirtiman Cements and Packaging Industries
Limited (KCPIL) is promoted by Mr Ashwani Kumar Oberoi, Mr Sunil
Kumar Oberoi and their family members. KCPIL has been operational
since August 2008 and is engaged into manufacturing of Poly
Propylene (PP) woven fabric bags used in packaging industry.
Apart from PP woven bags, the company also supplies PP woven
fabric to traders. KCPIL has its manufacturing facility with
total installed capacity of 6800 Metric Tonnes (MT) per annum as
on as on March 31, 2015 to manufacture PP woven bags located in
Yamuna Nagar, Haryana. The products are mainly used for packaging
cement, rice, chemicals, and vegetables etc. Company is a part of
the Ashwani Oberoi Construction Company (AOCC) group which is
engaged in the real estate line of business. The company has
achieved the total operating income of INR98.98 crore and PAT of
INR0.64 crore in FY16 as against INR91.89 crore and INR0.53
crore, respectively, in FY15.
KRG ASSOCIATES: CARE Reaffirms B Rating on INR12cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
KRG Associates, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12.00 CARE B; ISSUER NOT COOPERATING;
Facilities Reaffirmed
Detailed Rationale and key rating drivers
CARE has been seeking information from KRG Associates to monitor
the rating(s) vide e-mail communications/letters dated June 4,
2018, May 29, 2018, May 16, 2018 etc. and numerous phone calls.
However, despite our repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating KRG Assocaites bank
facilities will now be denoted as CARE B; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been reaffirmed by taking into account non-
availability of information and no due-diligence conducted due
to non-cooperation by KRG Assocaites with CARE'S efforts to
undertake a review of the rating outstanding. CARE views
information avaibility risk as a key factor in its assessment of
credit risk.
Detailed description of the key rating drivers
At the time of last rating on April 26, 2017, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
No prior experience of the partners in the hotel industry: The
partners have no prior experience in the hotel industry. Mr
Kulwant Rai Chhabra and Mr Abhishek Chhabra are having experience
as an income tax consultant. Mr Ankush Chhabra is engaged in
trading business (mobiles) in Kurukshetra region. Beside this,
all the partner are promoters in rice mill named Shiv Shankar
Rice Mill. Furthermore, Mr Rajesh Popli and Mr Ankush Chhabra are
directors in A.P.I Motors (P) Ltd a threewheeler manufacturing
unit at Bhagwanpur (Roorkee).
Residual project execution and stabilization risk associated with
the debt funded green-field project KRG was undertaking green
field project for setting up a new hotel on national highway
no.28 in Kuruksherta. The total project cost was estimated at
INR21.06 crore, which was be funded with a term debt of INR12
crore and promoter contribution of INR9.06 crore. As on January,
2016 KRG associates had incurred an expenditure of INR7.96 crore
towards the project and the same was funded through term loan of
INR2.75 crore and balance from the partner's contribution. The
hotel was expected to be operational by June 2017 thus execution
of the project within the envisaged cost and time and
stabilization and streamlining of revenue thereafter remains a
concern. The total cost of project was INR21.06 crore which firm
was funded through term loan of INR12 crore and partner's
contribution of INR9.06 crore. The debt has already been tied up
which provide visibility for funding of the project.
Highly fragmented and competitive nature of the industry
The Indian hotel industry is highly fragmented in nature with the
presence of a large number of organized and unorganized players
spread across various regions. Due to the competitive nature of
the hotel industry and presence of numerous players will limit
the pricing flexibility of the firm. The hotel faces competition
in the vicinity from various hotels. Moreover, opening of fast-
food and quick-service segment restaurants such as McDonalds on
the highways would intensify the competition.
Kurukshetra-based (Haryana) KRG established in September 2013 as
a partnership firm by Mr Kulwant Rai Chhabra, Mr Rajesh Popli, Mr
Gulshan Chhabra, Mr Abhishek Chhabra and Mr Ankush Chhabra. KRG
was undertaking a Greenfield project for constructing a three
star hotel and resort at Kurukshetra. The estimated cost of
project was INR21.06 crore. The proposed hotel will be built on
a land of 3 acres which would be situated on a national highway
no. 28 which links Punjab, Himachal Pradesh and Haryana to Delhi.
The hotel will have 24 rooms, banquet hall (600 person capacity),
mini banquet hall (120 person capacity) and a restaurant. The
hotel is proposed to commence commercial operations by June 2017.
MAGADH PRECISION: CARE Assigns D Rating to INR35cr Term Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Magadh
Precision Equipment Limited (MPEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short
Term Bank
Facilities 35.00 CARE D/ CARE D Assigned
Short Term Bank
Facilities 10.00 CARE D Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of MPEL is primarily
constrained on account of on-going delay in debt service
obligations due to weak liquidity position.
Establishing a clear track record of timely servicing its debt
obligations along with an improvement in liquidity position
remain the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
On-going delay in debt servicing: There were delays in debt
servicing by MPEL as the cash credit account of MPEL remained
overdrawn for more than 90 days while there were instances of LC
devolvement during the past two years period ended June, 2018 and
the account has turned Non Performing Asset (NPA). The same is
due to weak liquidity position majorly because of delay in
realization
from trade receivables.
Delhi-based, MPEL was incorporated in July 1986 as a public
limited company formerly known as "Magadh Steel Industries"
primarily promoted by Mr. Girja Nand Sharma, Mr. Krishna Kant
Kumar and Ms. Meera Sharma. MPEL is engaged in manufacturing of
capital equipment for metal processing industry which primarily
includes manufacturing of hot and cold rolling mill machines,
slitting lines, galvanizing lines catering to metal processing
and steel industry for flat products. The manufacturing unit
situated at Dewas, Madhya Pradesh which is spread over 12000 Sq.
Metres area. MPEL executes both domestic as well as export orders
received mostly from China, Bangladesh, USA, Japan, Tanzania and
Dubai.
MOHIT VENTURES: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Mohit Ventures
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR140 mil. Term loan due on March 2024 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating;
-- INR65 mil. Fund-based working capital limits migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR35 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4 rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 13, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Mohit Ventures manufactures thermo-mechanically treated bars at
its unit in Koderma, Jharkhand.
MONNET ISPAT: NCLT Approves Aion-JSW Resolution Plan
----------------------------------------------------
BloombergQuint reports that the National Company Law Tribunal on
July 19 approved a INR2,875-crore bid by a consortium of Aion
Investments Pvt. Ltd. and JSW Steel Ltd. to acquire the bankrupt
Monnet Ispat & Energy Ltd.
The Aion-JSW consortium was the sole bidder for the 1.5 million
tonne asset in Chhattisgarh, JSW said in a media statement,
BloombergQuint relates. It added that the detailed NCLT order is
awaited as the tribunal gave a verbal order July 24 with some
modifications to the original bid, the report says.
It is not immediately known what modifications the tribunal has
sought to the original bid, according to the report. When
contacted, JSW Steel refused to elaborate stating they are
awaiting the detailed order, the report says.
The bankrupt Monnet owes over INR11,000 crore to a clutch of
lenders. This means that banks and other financial creditors will
take a massive 74 percent haircut as the bid is worth only three-
fourths or 26 percent of the dues.
According to BloombergQuint, the consortium had earlier discussed
points pertaining to operational creditors' dues and small
shareholders, sources said, adding there may be some more
modifications which will be known in the written order.
The acquisition of Monnet Ispat is expected to help JSW Steel
consolidate its position in eastern markets, the report notes.
BloombergQuint notes that Monnet Ispat ran a successful coal-
based sponge iron plant with an annual capacity of 1.5 million
tonne in Chhattisgarh. BloombergQuint says the company ran into
problems when the coal mines attached to the plant were cancelled
in 2014 after a Supreme Court order. Crashing steel prices on
account of Chinese dumping further aggravated matters and
resulted into bankruptcy proceedings.
About Monnet Ispat
Monnet Ispat and Energy Limited is a holding company. The Company
is engaged in the business of conducting coal mining operations
and manufacturing coal-based sponge iron and various other
steel/iron-based products. The Company operates through three
segments: Iron & Steel, Power and Others. Its principal products
and services include steel and power. It has an integrated steel
plant at Raigarh that has a production capacity of 1.5 million
tons per annum (MTPA) to produce hot rolled (HR) plates, rebars
and structure profiles to cater to the infrastructure and
construction industry. The Company has coal blocks, such as Gare
Palma IV/5, Utkal B2, Urtan North, Raigmar dipside block and
Mandakini. It is also engaged in producing ferro-alloys, which
includes vital alloys, such as Ferro Manganese (Fe-Mn) and
Silico-Manganese (Si-Mn). These are supplied in diverse shapes
and forms from billets and ingots to powders, fillers and allied
reinforcements.
Monnet Ispat was one the 12 companies identified by the Reserve
Bank of India for action under the Insolvency and Bankruptcy Code
(IBC).
As reported in the Troubled Company Reporter-Asia Pacific on
April 11, 2018, BloombergQuint said Monnet Ispat's committee of
creditors on April 10 approved a resolution plan submitted by a
joint venture between AION Investments Pvt Ltd and JSW Steel Ltd.
The plan was approved by lenders with a 98.97 percent majority.
The bid will now be placed before the National Company Law
Tribunal for final approval, before being implemented.
On Feb. 27, BloombergQuint had reported that the JSW-AION
consortium had made a INR3,700 crore offer for Monnet Ispat. Of
this, INR2,650 crore were to be used to repay lenders against
admitted claims worth INR10,000 crore. That would mean that the
financial creditors would take a 76 percent haircut on their
exposure.
N.E TRADE: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated N.E. Trade &
Transport'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 B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based limit migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR400 mil. Non-fund-based limit migrated to Non-Cooperating
Category with IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 26, 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 2010, N.E. Trade & Transport is engaged in the
transportation of food grains in north-east India.
NATIONAL STEEL: Ind-Ra Lowers Long Term Issuer Rating to 'D'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded National Steel
and Agro Industries Limited's (NSAIL) Long-Term Issuer Rating to
'IND D' from 'IND BBB-' while resolving the Rating Watch Negative
(RWN).
The instrument-wise rating actions are:
-- INR2.006 mil. Fund-based working capital limits (long term)
downgraded with IND D rating;
-- INR89.4 mil. Term loans (long-term) due on April 1, 2019
downgraded with IND D rating; and
-- INR11.995 mil. Non-fund-based working capital limits (short-
term) downgraded with IND D rating.
KEY RATING DRIVERS
The downgrade reflects a delay in debt servicing on account of
the devolvement of the letters of credit for a period of over 30
days. The company has deferred the declaration of its financial
results for FY18 owing to a delay in the preparation of books of
accounts.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
NSAIL manufactures cold-rolled sheet (capacity: 300,000 metric
tons per annum (mtpa)), galvanized plain and corrugated sheets
(330,000mtpa) and color-coated sheets and coils (170,000mtpa) at
its plant in the Dhar district of Madhya Pradesh. Moreover, it
trades agro and steel products, and has a captive 6MW gas-based
power plant.
NIKHIL TOBACCOS: ICRA Maintains B+ Rating in Not Cooperating
------------------------------------------------------------
ICRA has maintained Nikhil Tobaccos (NT) bank facility rating in
the non-cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Cash Credit 18.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated Limits 2.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Rationale
The rating for the INR20.00 crore bank facilities of NT continues
to remain under 'Issuer Not Cooperating' category. The rating is
now denoted as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING".
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Nikhil Tobbacos, established as a proprietorship concern by Mrs.
Gutta Suma in the year 2012, has been engaged in processing and
trading of tobacco leaf. The administrative office cum godown of
the concern is situated at Ongole, Prakasm dist. The godown of
the concern is spread over an area of 1 acre with built up area
of 47000 square feet. The storage capacity of the godown is
around 800 tonnes.
NRI EDUCATIONAL: Ind-Ra Migrates BB LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated NRI Educational
Society's bank loan 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 the ratings. The ratings will now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR10.00 mil. Term loan due on January 9, 2019 migrated to
Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR48.85 mil. Overdraft Facility migrated to Non-Cooperating
Category with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 17, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
NRI Educational, in collaboration with G. D. Goenka Private
Limited, operates G. D. Goenka Public School in Kanpur, Uttar
Pradesh.
PRABHAT GLOBAL: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Prabhat Global
Colourcoated Private Limited (PGCPL) a Long-Term Issuer Rating of
'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR240 mil. Fund-based working capital limit assigned with
IND B+/Stable/IND A4rating; and
-- INR140 mil. Term loan due on March 2024 assigned with
IND B+/Stable rating.
KEY RATING DRIVERS
The ratings reflect the execution and off take risks associated
with PGCPL's ongoing project. The company is setting up a
facility for manufacturing color coated plain sheets. The total
project cost of INR286.5 million is being funded through a term
debt of INR140 million and balance through promoters'
contribution by way of equity and unsecured loan. The project is
scheduled to start commercial operations in August 2018.
However, management believes the advanced stage of project
completion and the company's strong relationships with steel
companies mitigate the risks to a certain extent.
The ratings are supported by the plant's proximity to the target
industries.
RATING SENSITIVITIES
Negative: Any delays in the commencement of operations will lead
to a negative rating action.
Positive: Scheduled commencement of the project and stabilization
of profitable operations, leading to generation of sufficient
cash flows, will lead to a positive rating action.
COMPANY PROFILE
PGCPL was incorporated in February 2017 to set up a 1,00,000MTPA
plant for manufacturing color coated plain sheets (galvanized
iron) in Raigad District, Maharashtra. The company promoters are
Mr. Girish Jain and Mrs. Sushma Jain.
PRATHUL AUTOMOBILES: ICRA Withdraws B+ Rating on INR13.21cr Loan
----------------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B+
(stable)/ISSUER NOT COOPERATING assigned to the INR15.00-crore
fund-based limits of Prathul Automobiles Private Limited (PAPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 13.21 [ICRA]B+(Stable) ISSUER NOT
Based COOPERATING; Withdrawn
Unallocated 1.79 [ICRA]B+(Stable) ISSUER NOT
Limits COOPERATING; Withdrawn
Rationale
The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension at the request from the company based
on no dues certificate provided by its lenders.
Prathul Automobiles Private Limited (PAPL) was established in
2003 to engage in the business of selling 2 wheelers of Honda
Motorcycles and Scooters India Private Limited (HMSI). The
company is a part of the Butta group which has operations across
Hospitality, Retail (Branded jewellery and automobiles) and
education, primarily in the Hyderabad market. PAPL currently
operates through 4 showrooms and 4 service centres in the
Hyderabad.
PRINITI FOODS: CRISIL Hikes Rating on INR8.98cr Term Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Priniti Foods Private Limited (PFPL) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Term Loan 8.98 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects improvement in the company's business and
financial risk profiles, driven by scale-up of operations due to
increased distribution network and addition of capacity for
manufacturing `snacks. Gearing improved to 1.7 times as on
March 31, 2018, from 2.2 times a year earlier. Debt protection
metrics were comfortable with interest coverage and net cash
accrual to total debt ratio of 4.5 times and 0.29 time,
respectively, for fiscal 2018. Liquidity remains supported by
more-than-sufficient cushion between accrual and debt obligation
and moderate bank limit utilisation.
The rating continues to reflect, modest scale of operations and
susceptibility to fluctuations in raw material prices. These
weaknesses are partially offset by established distribution
network in North India and moderate financial risk profile.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations amid intense competition: Modest
scale, reflected in topline of INR50.9 crore for fiscal 2018,
restricts the company's financial flexibility and ability to
withstand exigencies. Furthermore, PFPL faces intense competition
from some large players such as Pepsico, Haldiram, Bikanerwala,
Bicano, and Aakash, which have strong brand recall and
established marketing network, as well as from small, regional
players. High competition in metros and tier 1 cities has
persuaded PFPL to focus on tier 2 and 3 cities. However, in these
cities, competition from local manufacturers of snacks and from
the unorganised sector is high. Intense competition will continue
to constrain PFPL's business risk profile.
* Profitability susceptible to fluctuations in raw material
prices: PFPL is highly dependent on domestic production of
agricultural commodities such as potatoes, rice, corn, and grams,
which depends on the area under cultivation, monsoon, prices of
other crops, and other incentives offered by the Government of
India. All these factors determine the final price of crops.
Furthermore, high quality of input needs to be maintained at all
times because any quality-related problem could hit PFPL's brand
value. Moreover, the company will be unable to pass on any
significant increase in raw material price to customers, leading
to pressure on its operating margin.
Strengths
* Established distribution network in North India: PFPL has
established an extensive distribution network, with 30 super
stockists and 300 distributors, which cater to retail outlets in
the National Capital Region (NCR), Uttar Pradesh, Haryana,
Rajasthan, and Punjab. CRISIL believes PFPL will benefit from its
established distribution network.
* Moderate financial risk profile: The financial risk profile is
expected to remain moderate, with moderate gearing of 1.74 times
as on March 31, 2018, and comfortable debt protection metrics,
with expected interest coverage ratio at 4.5 times and net cash
accrual to total debt ratio at 0.29 time for fiscal 2018.
Outlook: Stable
CRISIL believes PFPL will continue to benefit over the medium
term from its established distribution network. The outlook may
be revised to 'Positive' in case of a significant increase in
scale, along with sustained improvement in profitability, leading
to higher-than-expected cash accrual. Conversely, the outlook may
be revised to 'Negative' if revenue and profitability are lower
than anticipated, leading to significant pressure on liquidity.
Incorporated in 2009 and promoted by New Delhi-based Mr Rajesh
Garg, PFPL manufactures assorted extruded snacks such as finger
snacks, rings, puffs, and potato chips, at its plant in Sonepat,
Haryana.
RADHA KRISHNA: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Radha Krishna
Firayalal & Co.'s Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR58.5 mil. Fund-based working capital limit migrated to
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating; and
-- INR2.5 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
July 10, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated as a partnership firm by Mr. Jayant Manjulal and
Mrs. Sonica Manjulal in October 2013, Radha Krishna Firayalal &
Co. operates a mega departmental store named Firayalal Next in
Ranchi, Jharkhand.
RKC INFRABUILT: ICRA Withdraws B- Rating on INR36.60cr Loan
-----------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B- with a Stable
outlook assigned to the INR36.60 crore bank facilities of RKC
Infrabuilt (Savli-Halol) Road Projects Private Limited (RKC-SH).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Term Loan 36.60 [ICRA]B- (Stable); Withdrawn
Rationale
The ratings assigned to RKC Infrabuilt (Savli-Halol) Road
Projects Private Limited have been withdrawn at its request based
on the no objection certificate provided by its banker.
Incorporated in 2011 as a wholly owned subsidiary of S I Quarry
Works Private Limited and RKC Infrabuilt Private Limited,
RKC Infrabuilt (Savli- Halol) Road Project Private Limited (RKC-
SH) is a special purpose vehicle (SPV) which had constructed
improved and widened highway along the stretch from Savli to
Halol. The project entailed construction on the existing two-lane
State Highway 150 covering a distance of 24.20 km in the state of
Gujarat on Design, Built, Finance, Operate and Transfer (DBFOT)
Basis and to thereafter maintain it for a period of 12 years.
The project was executed before the projected timeline at a total
cost of INR42.62 crore. The highway was made available for public
use from March 11, 2014.
RKC INFRABUILT (TARAPUR-KHAMBHAT): ICRA Withdraws B- Rating
-----------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B- with a Stable
outlook assigned to the INR36.30 crore bank facilities of RKC
Infrabuilt (Tarapur-Khambhat) Road Projects Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Term Loan 36.30 [ICRA]B- (Stable); Withdrawn
Rationale
The ratings assigned to RKC Infrabuilt (Tarapur-Khambhat) Road
Projects Private Limited have been withdrawn at its request based
on the no objection certificate provided by its banker.
Incorporated in 2011 as a wholly-owned subsidiary of S I Quarry
Works Private Limited and RKC Infrabuilt Private Limited,
RKC Infrabuilt (Tarapur -Khambhat) Road Projects Private Limited
(RKC-TK) is a special purpose vehicle (SPV) which has
constructed, improved and widened along the stretch from Tarapur
to Khambhat. The project entailed construction on the existing
two-lane State Highway 16 covering a distance of 26.90 km in
Gujarat on a design, built, finance, operate and transfer (DBFOT)
basis and to thereafter maintain it for a period of 12 years. The
entire project was executed before the projected timeline at a
total cost of INR49.00 crore. The highway was made available for
public use from November 2, 2013.
SHREEJI VITRIFIED: ICRA Assigns B+ Rating to INR6.30cr Loan
-----------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B+ for the
INR6.30-crore cash credit facility and INR5.08-crore term loan
facility of Shreeji Vitrified Private Limited. ICRA has also
assigned the short-term rating of [ICRA]A4 for the INR1.50-crore
non-fund based limits of the company. The outlook on the long-
term rating is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 5.08 [ICRA]B+ (Stable); Assigned
Cash Credit 6.30 [ICRA]B+ (Stable); Assigned
Bank Guarantee 1.50 [ICRA]A4; Assigned
Rationale
The ratings reaffirmation takes into account the company's
relatively small scale, leveraged capital structure and weak debt
coverage indicators. Further, the ratings factor in the highly
fragmented nature of the tiles industry that results in intense
competition, and the exposure of SVPL's profitability to
volatility in raw material and fuel prices. The ratings are also
constrained by the linkage of the company's business operations
to the cyclical nature of the real-estate industry, which is the
main consuming sector.
The ratings, however, continue to favorably factor in the
extensive experience of SVPL's promoters in the ceramic industry
and its proximity to raw material sources by virtue of its
presence in Morbi (Gujarat).
Outlook: Stable
ICRA believes that SVPL will continue to benefit from the
extensive experience of its promoters in the ceramic industry.
ICRA also expects the company's scale of operations to grow with
an improvement in capacity utilisation levels after the
completion of capex for replacement of machinery in FY2018. The
outlook may be revised to Positive if substantial growth in
revenues and profitability, and better working capital
management, strengthen the financial risk profile. The outlook
may be revised to Negative if cash accrual is lower than expected
and results in any delay in servicing debt obligations or adverse
capital structure, or if any major debt-funded capex, or a
stretch in working capital cycle weakens liquidity.
Key rating drivers
Credit strengths
Extensive experience of promoters in ceramic industry: The key
promoter, Mr. Harilal K. Patel, has more than 15 years of
experience in the ceramic industry through his associations with
other companies in the industry.
Location-specific advantage: The manufacturing facility of the
company is located in the ceramic hub of Morbi (Gujarat), which
provides easy access to quality raw materials like body clay,
feldspar and glazed frit in Gujarat and Rajasthan.
Credit challenges
Weak financial risk profile: The scale of operations for the
company remains small with revenues of INR25.08 crore in FY2018.
SVPL reported an operating margin of 12.00% and a loss at the net
level due to the loss on sale of assets of INR0.30 crore in
FY2018. The financial risk profile remained weak, as indicated by
gearing of 2.34 times as on March 31, 2018 and weak debt coverage
indicators with interest coverage of 2.92 times, NCA/Debt of 11%
and TD/OPBDITA of 4.68 times in FY2018.
Margins subject to pressure from intense competition and
cyclicality in real estate industry: The ceramic tile
manufacturing industry is highly fragmented with competition from
the organised as well as the unorganised segments, most of which
are located in Gujarat and operate on low cost structures,
creating pressure on the prices. Further, the real-estate
industry accounts for the maximum consumption of ceramic tiles.
Hence SVPL's profitability and cash flows are likely to remain
vulnerable to the cyclicality in the real estate industry.
Vulnerability of profitability to fluctuations in raw material
and energy costs: Raw material and fuel are the two major
components determining the cost competitiveness in the ceramic
industry. The company can, however, exercise little control over
the prices of its key inputs such as natural gas/coal and raw
materials. Thus, SVPL's margins are expected to remain exposed to
the movement in raw material and gas/coal prices and the ability
to pass any upward movements to its customers.
SVPL is a double charge vitrified tiles manufacturer with its
plant situated at Morbi, Gujarat. The company was incorporated in
2010 by Mr. Harilal K. Patel and family members. The commercial
operations for the company started from June 2011 onwards. SVPL
markets its tiles through brand names - Artica, Euro and Simex.
The company manufactures double charge vitrified tiles in two
sizes, viz. 600 mm x 600 mm and 800 mm x 800 mm. SVPL has an
installed capacity for manufacturing 45,990 MT of tiles per
annum.
SHRI RAM: ICRA Maintains B+ Rating in Not Cooperating Category
--------------------------------------------------------------
ICRA has maintained Shri Ram Rolling Mill (SRRM) bank facility
rating in the non-cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
category
Fund Based Limit- 5.09 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
category
Untied Limits 1.41 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
category
Rationale
The rating for the INR16.50-crore bank facilities of SRRM
continues to remain under 'Issuer Not Cooperating' category. The
rating is now denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Shri Ram Rolling Mill (SRRM) was established as a partnership
firm by the Raipur-based Gidwani family in 2006. SRRM's plant is
located at Rawabhata Industrial Area in Raipur, Chhattisgarh.
SRRM has facilities for manufacturing mild steel (MS)
ingots/billets and steel structurals with an annual capacity of
40,000 metric tonnes (MT) and 10,000 MT per annum, respectively.
SHRIYA RICE: ICRA Reaffirms B Rating on INR5.50cr Loan
------------------------------------------------------
ICRA has reaffirmed the long-term rating at [ICRA]B for the
INR5.50-crore (revised from INR3.50 crore) fund-based facilities,
INR0.40-crore (revised from INR1.21 crore) term loans and
INR2.60-crore (revised from INR3.79 crore) unallocated limits of
Shriya Rice Mills (SRM). The outlook on the long-term rating is
Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-CC 5.50 [ICRA]B (Stable); reaffirmed
Fund-based-
Term Loan 0.40 [ICRA]B (Stable); reaffirmed
Unallocated Limits 2.60 [ICRA]B (Stable); reaffirmed
Rationale
The rating reaffirmation takes into account the firm's moderate
scale of operations and the high working-capital intensive nature
of operations, leading to reliance on external borrowings,
resulting in high gearing of 3.5 times as on March 31, 2018 and
moderate coverage indicators. The rating also factors in the
intensely competitive nature of the rice industry with the
presence of numerous large and small-scale players which
constrain volumes and pricing flexibility of rice millers.
The rating also takes into account the susceptibility of revenues
and margins to inherent agro-climatic risks and changes in
Government policies, which impact the availability and the price
of paddy.
The rating is also constrained by the inherent risks associated
with the partnership nature of the business, including the risk
of capital withdrawal, and limited ability to raise funds, among
others. The rating, however, favourably factors in the extensive
experience of the promoters of over three decades in the rice
milling business. The rating also considers the consistent
improvement in the firm's revenues over the last three fiscals,
with stabilisation of operations post the capital expenditure
undertaken in FY2015. The rating continues to derive comfort from
the proximity of the firm to paddy-growing areas in Raichur and
nearby districts, in turn, facilitating easy procurement of raw
materials and the stable demand outlook of the industry.
Outlook: Stable
ICRA believes that SRM will continue to benefit from the
extensive experience of its promoters in the rice-milling
business. The outlook may be revised to 'Positive' if the firm is
able to demonstrate substantial growth in revenues and
profitability, resulting in healthy cash accruals or if any
improvement in the capital structure strengthens the overall
financial profile. The outlook may be revised to 'Negative' if
the firm reports lower-than-expected accruals or any stretch in
working-capital cycle weakens liquidity.
Key rating drivers
Credit strengths
Extensive experience of promoters in the rice-milling business:
Incorporated in 2010, SRM is a partnership firm involved in the
processing of raw rice and parboiled rice. The promoters have
been involved in the rice-milling business for over three
decades. Experience of the promoter has enabled the company to
establish relationship with suppliers as well as customers, which
ensures timely availability of raw materials and repeat orders
from a diversified customer base. The firm's milling unit at
Raichur in Karnataka with an installed capacity of 8 MT per hour
of milling.
Proximity to rice-growing areas: The firm's plant is located at
Raichur, which is surrounded by areas such as Manvi, Sindhnoor
and Gangavathi where a major part of the paddy is cultivated.
This results in low transportation cost for the firm and easy
availability of paddy.
Favourable demand outlook: Demand prospect of rice is expected to
remain favourable as it a staple food grain and India is the
second largest producer of rice in the world.
Credit challenges
Modest scale of operations: The overall scale of operations
continues to remain moderate with revenues of INR18.4 crore in
FY2018, albeit improved over the past two years, restricting
operational and financial flexibility to some extent.
Moderate financial profile: The working-capital intensive nature
of operations lead to high reliance on external working-capital
borrowings, resulting in high debt levels, which, coupled with
low net worth resulted in high gearing of 3.5 times as on March
31, 2018 (albeit improved from 7.9 times as on March 31, 2017)
and moderate coverage indicators.
Intense competition marked by presence of a large number of
players: Owing to low entry barriers with readily-available
technology and proximity to rice-cultivating belt, there are more
than 90 rice-milling units in and around Raichur, leading to
intense competition for paddy procurement, in turn affecting
volumes and pricing flexibility of rice millers like SRM.
Inherent agro-climatic risks and vulnerability to changes in
Government policies: Being in the agricultural business, industry
players continue to face inherent risks such as unfavourable
monsoons, availability of raw materials at reasonable prices,
epidemics in paddy crop or shift of farmers to other cash crops
and cyclicality, as well as changes in Government regulations.
Inherent risks associated with the partnership nature of the
business: The firm is exposed to risks associated with
partnership firms including capital withdrawal that could
adversely impact the capital structure.
Incorporated in 2010, Shriya Rice Mills is a partnership firm
involved in the milling of paddy to produce raw rice. The firm
has a milling unit at Raichur, Karnataka with an installed
capacity of 8 MT per hour of milling. The firm's major products
include boiled rice, raw rice, bran, broken rice and husk and it
has a storage capacity of 70,000 bags (75 kg each) of paddy and
800 MT of rice. The firm sells raw rice under the brand name
'Aarambam'.
In FY2018, on a provisional basis, the firm reported a net profit
of INR0.5 crore on an operating income of INR18.4 crore compared
to a net profit of INR0.5 crore on an operating income of INR16.4
crore in the previous year.
SHRIVIDYA EDUCATION: ICRA Cuts Rating on INR88cr Loan to D
----------------------------------------------------------
ICRA has downgraded the long-term rating of [ICRA]BB- for the
INR52.00-crore fund-based facilities and the INR88.00-crore
unallocated limits of Shrividya Education Foundation (SEF) to
[ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term: Fund- 52.00 [ICRA]D; downgraded from
based facilities [ICRA]BB-(Stable)
Long term: 88.00 [ICRA]D; downgraded from
Unallocated [ICRA]BB-(Stable)
Rationale
The rating downgrade reflects the delay in debt servicing by SEF
due to stretched liquidity position following the delays in
commencement of operations of Pana Institute of Undergraduate
Studies. Moreover, higher than anticipated capital expenditure
for the infrastructure construction has led to increase in term
loans to INR97.0 crore as on date compared to INR52.00 crore as
on March 31, 2017, weakening the debt-repayment capacity of the
entity.
Key rating drivers
Credit strengths
Long track record of trustees in the education sector: The trust
commenced its operations in 2008 and set up Brilliant Pre-
University College, which has an established presence in the
Mangalore education sector. The trust subsequently set up Pana
P.U. College, which provides PU board education facilities for
various streams, along with allied facilities like hostel and
mess facilities to the students.
Credit challenges
Recent delays in debt servicing: The commencement of operations
of its college - Pana Institute of Undergraduate Studies was
deferred due to delay in receipt of university affiliation
approvals from Mangalore University. In the absence of timely
funding support from promoters, the trust delayed in servicing
its debt repayment obligations.
Higher than anticipated capital expenditure: The capital
expenditure incurred by the trust for completion of the
infrastructure for pre-school, international school and design
school has been higher than anticipated and this has resulted in
sharp increase in the trust's debt levels. This in turn has led
to higher repayment obligations, eventually leading to default.
Shrividya Education Foundation (SEF) is an education trust
established in 2008 in Mangalore, Karnataka. The trust was
initially formed as Vidya Education Trust and was later renamed
as Shrividya Education Foundation in April 2013. SEF's first
education institute "Brilliant Pre-University College" was set up
in 2010 at Mangalore. However, the trust was reconstituted in
July 2016 and the activities were separated into two different
trusts. Subsequently, "Brilliant Pre-University College" was
transferred under a new trust. Currently SEF manages a new
institution "Pana P.U. College" which became operational from
AY2016. Going forward the trust also plans to start Graduate
courses, Pre-school, International school and Design school.
SPARSH INDUSTRIES: Ind-Ra Affirms 'BB+' Rating, Outlook Positive
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Sparsh Industries
Private Limited's (SIPL) Outlook to Positive from Stable while
affirming its Long-Term Issuer Rating at 'IND BB+'.
The instrument-wise rating actions are:
-- INR2.130 bil. (reduced from INR2.555 bil.) Term loans due on
March 2019 - March 2026 rating affirmed; Outlook revised to
Positive from Stable with IND BB+/Positive rating;
-- INR780 mil. Fund-based bank facilities rating affirmed;
Outlook revised to Positive from Stable with IND BB+/
Positive/IND A4+ rating; and
-- INR420 mil. Non-fund-based bank facilities affirmed; Outlook
revised to Positive from Stable with IND BB+/Positive/IND A4+
rating.
KEY RATING DRIVERS
The Outlook revision reflects SIPL's higher-than-expected
improvement in net leverage (total adjusted net debt/operating
EBITDA) and revenue in FY18. The 49% rise in revenue to INR5,562
million in FY18 was on account of an increase in sales volume
growth and better price realizations from its PET film plant. The
sales volume growth at the PET film facility was driven by steady
sales volume growth from the newly installed BOPET Line 2, as
well as from the existing line (BOPET Line 1; commissioned in
October 2016). Moreover, SIPL's net leverage, albeit remained
high owing to a high debt, improved to 4.45x in FY18 from 8.65x
in FY17. FY18 financials are provisional.
The ratings continue to be supported by the promoters' track
record of over two decades in the flexible packaging business.
The ratings factor in SIPL's return on capital employed of 7%-8%
in FY15-FY18 and its modest debt service coverage ratio (1.1x-
1.3x for FY18-FY19) and modest EBITDA margin (FY18: 14.57%; FY17:
11.09%). The rise in the margin was due to better prices
realizations and the management's focus on better fixed cost
absorption. This led to a higher EBITDA/kg (FY18: INR14.10; FY17:
INR10.0) against the earlier expectation of INR12.00.
The ratings also factor in SIPL's modest liquidity position, as
indicated by an average fund-based working capital limit
utilization of over 66% for the 12 months ended June 2018.
The ratings, however, continue to be constrained by inherent
business risks of demand-supply disparity in the BOPET industry,
BOPET price volatility and adverse movements in the prices of raw
materials (which are derived from crude oil). Moreover, the
ability of the company to pass on input price variations to end
consumers in an oversupplied market would remain challenged.
RATING SENSITIVITIES
Positive: Sustained revenue, EBITDA margin and credit metrics
could lead to a positive rating action.
Negative: A weak operating performance leading to delays in
deleveraging will result in a downgrade.
COMPANY PROFILE
SIPL is a part of Kanpur-based Sparsh Group. It was incorporated
in 2009 and manufactures BOPET films at Jainpur industrial area,
near Kanpur. It has a total installed capacity of 61,683mtpa.
STEELWAYS ENTERPRISES: CRISIL Keeps D Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Steelways
Enterprises (SE) for obtaining information through letters and
emails dated December 31, 2017 and June 29, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (ISSUER NOT COOPERATING)
Proposed Long
Term Bank Loan
Facility 3 CRISIL D (ISSUER NOT COOPERATING)
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 SE, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SE is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SE continues to be CRISIL D Issuer not cooperating'
SE was set up in 1983 as a partnership firm by Delhi-based Sharma
family. After a family separation, SE was reconstituted as a
proprietorship firm owned by Mr. B N Sharma. SE trades in tool
steels and alloy steels, such as cold work tool steel, plastic
mould steel, stainless steel, high-speed steel, and die block
steel, in the National Capital Region, Punjab, and Uttar Pradesh.
Mr. B N Sharma and his son Mr. Pawan Sharma actively manage the
firm's day-to-day operations.
SUNDARAM MULTI: CARE Assigns B+ Rating to INR35.03cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Sundaram Multi Pap Limited (SMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 35.03 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SMPL are
constrained by moderate scale of operations, below average
financial risk profile, highly working capital intensive nature
of operations, susceptibility of profit margins due to volatile
material prices and presence in competitive and fragmented
industry.
The ratings however, derive strength from established regional
brand presence, strong distribution network with experienced
management.
Ability of SMPL to increase its scale of operations while
improving its profitability amidst intense competition while
maintaining its capital structure along with efficient management
of its working capital requirement remain the key rating
sensitivity.
Detailed description of Key rating drivers
Key Rating Weaknesses
Moderate and fluctuating scale of operations: The scale of
operations of the company remained moderate and fluctuating over
the period of past four years ended FY18 (Prov.). The total
operating income (TOI) was ranging from INR96.00 crore to
INR108.66 crore during the same period and the same has increased
to INR108.66 crore in FY18 (vis-Ö-vis INR96.00 crore in FY17) due
to increase in orders received by the company.
Below average financial risk profile: The financial risk profile
of the company remained weak due to fluctuating operating profit
margins with net losses incurred during four years ended FY18
which has further resulted in weak debt coverage indicators.
While capital structure remained moderate owing to continuous
repayment of term loans availed from banks and inter-corporate
deposits.
Highly working capital intensive nature of operations: Operations
of SMPL are highly working capital intensive mainly on account of
funds being blocked in inventory as company has to maintain raw
material inventory to execute the orders in timely manner and
receivables as company offers credit period of around two to
three months. Further on the other hand it company receives
moderate credit period from its suppliers which has further
resulted in maximum utilization of working capital limits.
Susceptibility of profit margins due to volatile material prices:
The raw material is the major cost driver and the prices of the
same are volatile in nature therefore cost base remains exposed
to any adverse price fluctuations in the prices of the paper and
duplex board being major cost components amongst all raw
materials are volatile in nature. Accordingly, the profitability
margin of the firm is susceptible to fluctuation in raw material
prices. With limited ability to pass on the increase in raw
material costs in a competitive operating spectrum, any
substantial increase in raw material costs would affect the
company's profitability.
Presence in competitive and fragmented industry: SMPL operates in
a highly competitive and fragmented stationary industry. The
company witnesses intense competition from both the other
organized and unorganized players domestically. This fragmented
and highly competitive industry results into price competition
thereby posing a threat to the profit margins of the companies
operating in the industry.
Key rating Strengths
Established regional brand presence, strong distribution network:
SMPL has long standing track record of operations with more than
two decades of existence in the market in which the company has
established market position and developed its brand presence.
'Sundaram' is one of the leading brands in education stationery
market in western India for the past two decades. SMPL has a
strong distribution network with over 42 stockiest put together
across Maharashtra, Gujarat and Goa. Experienced management: SMPL
is promoted by Shah brothers viz; Mr. Amrut Shah and Mr.
Shantilal Shah, having more than 30 years of experience in
education stationery industry of which majority has been gained
through its association with company since 1996.
Sundaram Multi Pap Limited (SMPL), incorporated in 1996, is
promoted by Shah brothers viz; Mr. Amrut Shah and Mr. Shantilal
Shah. SMPL is engaged in the manufacturing of exercise books,
other paper stationery products and trading of craft papers and
sketch books. Its manufacturing facility is located at Palghar
with an installed capacity of 15 crore pieces per annum. It sells
its products in Maharashtra, Goa and Gujarat and has a strong
distribution network with over 42 stockiest in the said region.
The major raw material required is paper and duplex board and are
procured primarily from West Coast Paper Mills Limited and Tamil
Nadu Newsprint and Papers Limited.
SUNLAND CERAMIC: ICRA Reaffirms B+ Rating on INR4cr Cash Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ for the
INR4.00-crore cash credit facility and the INR0.97-crore term
loan facility of Sunland Ceramic Private Limited. ICRA has also
re-affirmed the short-term rating of [ICRA]A4 for the INR1.50-
crore non-fund based limits of the company. The outlook on the
long-term remains 'Stable'. ICRA has also reaffirmed the [ICRA]B+
(Stable)/[ICRA]A4 rating for the INR2.96-crore unallocated limits
of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 0.97 [ICRA]B+ (Stable); Reaffirmed
Cash Credit 4.00 [ICRA]B+ (Stable); Reaffirmed
Bank Guarantee 1.50 [ICRA]A4; Reaffirmed
Unallocated Limits 2.96 [ICRA]B+ (Stable)/A4;
Reaffirmed
Rationale
The ratings reaffirmation takes into account the company's
relatively small scale, its moderate capital structure and the
average debt coverage indicators. The ratings also factor in the
intense competition caused by the highly fragmented structure of
the tiles industry and the exposure of SCPL's profitability to
volatility in raw material and fuel prices. The ratings further
take into account the exposure of the company's operations to the
cyclical nature of the real-estate industry, which is the main
end-user sector.
The ratings, however, continue to favourably factor in the
extensive experience of SCPL's promoters in the ceramic industry
and its proximity to raw material sources, by virtue of its
presence in Morbi (Gujarat).
Outlook: Stable
ICRA believes SCPL will continue to benefit from the extensive
experience of its promoters in the ceramic industry. The outlook
may be revised to Positive if substantial growth in revenue and
profit and better working capital management strengthen the
financial risk profile. The outlook may be revised to Negative if
cash accrual is lower than expected, which might delay the debt
servicing obligations; or if an adverse capital structure; or
major debt-funded capex, or a stretch in working capital cycle
weakens liquidity.
Key rating drivers
Credit strengths
Extensive experience of partners in ceramic tiles industry: The
key promoters of the company, Mr. Kamlesh P. Kundariya, Mr.
Kishor P. Kundariya, Mr. Mahadevbhai M. Rangapariya and Mr.
Sanjay G. Dhamecha, have extensive experience in the ceramic
industry through their associations with other companies in the
ceramic industry.
Location-specific advantage: The manufacturing facility of the
company is located in the ceramic hub of Morbi (Gujarat), which
provides easy access to quality raw materials such as body clay,
feldspar and glazed frit in Gujarat and Rajasthan.
Credit challenges
Average financial risk profile: The company's scale of operations
is small (revenue of INR23.01 crore in FY2018 provisional
figures). SCPL reported an operating margin of 6.40% and a net
margin of 1.46%, as per the provisional figures in FY2018. The
financial risk profile remained moderate, marked by a gearing of
0.65 times as on March 31, 2018, and average debt coverage
indicators - the interest coverage was 3.99 times, NCA/Debt was
29% and TD/OPBDITA of 2.70 times in FY2018.
Margins subject to pressure from intense competition and
cyclicality in real estate industry: The ceramic tile
manufacturing industry remains highly fragmented with competition
from the organised as well as the unorganised players, most of
which are located in Gujarat and operate on low-cost structures,
creating a pressure on the prices. Further, the real estate
industry accounts for majority of the uptake in the ceramic
tiles, and hence SCPL's profitability and cash flows are likely
to remain vulnerable to the cyclicality in the real estate
industry.
Vulnerability of profitability to fluctuations in raw material
and energy costs: Raw material and fuel are the two major
components that determine the cost competitiveness in the ceramic
industry. The company has, however, little control over the
prices of its key inputs such as natural gas/coal and raw
materials. Thus, SCPL's margins are expected to remain exposed to
the movement in raw material and gas/coal prices and its ability
to pass on any upward movements to its customers.
Sunland Ceramic Pvt Ltd (SCPL) is a wall tiles manufacturer and
its plant is situated at Morbi in Gujarat. The company was
established in December 2010 and commenced operations in January
2012. SCPL is promoted and managed by Mr. Kishor P. Kundariya,
who is the current managing director of the company. At present,
the plant has an installed manufacturing capacity of ~40000 MTPA
(~15000 boxes per day) and manufactures wall tiles of sizes
12"x18", 8"x20" and 10"x15".
SURYA ALLOY: CRISIL Reaffirms D Rating on INR173.38cr Term Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D/CRISIL D' ratings on the bank
loan facilities of Surya Alloy Industries Limited (SAIL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 91.49 CRISIL D (Reaffirmed)
Letter of credit
& Bank Guarantee 50.77 CRISIL D (Reaffirmed)
Term Loan 173.38 CRISIL D (Reaffirmed)
The company has been continuing to delay its repayments till May
2018, as confirmed by its bankers. The delays have been caused by
the weak financial risk profile stemming from lack of cash
accrual and high gearing.
Key Rating Drivers & Detailed Description
Weaknesses
* Delays in debt servicing: The company continues to delay
servicing debt till May 2018 contracted from various banks due to
weak liquidity. As part of corporate debt restructuring, Surya
Alloy was granted moratorium of two years on principal obligation
(April 1, 2012-March 31, 2014; interest was serviced through
funded interest term loan). However, post moratorium, the company
has delayed paying instalments.
* Weak financial risk profile because of low cash accrual:
Increase in raw material prices and intense pricing pressure led
to low cash accrual and hence, weak financial risk profile. Also,
operations are working capital-intensive. Gearing is expected to
remain high over the medium term due to large working capital
requirement and erosion in networth due to net losses.
Strengths
* Extensive experience of promoters: The proprietor has extensive
experience of over two decades in the steel industry. This has
helped to establish strong relationships with customers and
suppliers.
SAIL was promoted by Mr. Ashish Rungta and the late Mr. Motilal
Rungta in 1990. The Rungta group has been mainly manufacturing
railway track material for the Indian Railways for the past 20
years. Surya Alloy mainly manufactures and supplies railway track
material, including spheroidal graphite cast iron inserts,
elastic railway clips, grooved rubber pads, metal liners, and
fish plates. The company is approved by the Research Design &
Standards Organisation of the Indian Railways. Over the years,
Surya Alloy has expanded its product profile to include ingots
and billets (alloy/non-alloy steel), special spring steel rounds,
and rolled products such as angles, channels, joists, Zsection
bars, and flats. The company has also set up a ferroalloys
division.
TEJASWI MOTORS: ICRA Withdraws B Rating on INR20cr LT Loan
----------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA] B
(Stable)/ISSUER NOT COOPERATING assigned to the INR20.00 crore
fund-based limits of Tejaswi Motors Private Limited (TMPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 20.00 [ICRA]B(Stable) ISSUER NOT
Based-CC COOPERATING; Withdrawn
Rationale
The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension at the request from the company based
on no dues certificate provided by its lenders.
Tejaswi Motors Private Limited (TMPL) was incorporated in the
year 2005 and commenced its operations in March 2010. It is
engaged in the automobile dealership of TATA Motors passenger
vehicles in Hyderabad. The company currently runs 1 showroom and
service centre in Madhapur, Hyderabad. The Company is promoted by
Mr. Butta S Neelakanta and his wife Mrs. Butta Renuka and is part
of the BUTTA group of companies based out of Andhra Pradesh. The
Butta group has presence in the Hospitality, Education, Branded
Retail and Automobile space in Hyderabad.
UNIVERSAL TUBE: CARE Lowers Rating on INR13.49cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Universal Tube Accessories Private Limited (UTAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 13.49 CARE D; Issuer Not Cooperating;
Facilities Revised from CARE B; Issuer not
Cooperating
CARE has been seeking information from UTAPL to monitor the
rating vide e-mail communications/letters dated June 27, 2018,
June 25, 2018, May 30, 2018 and numerous phone calls. However,
despite our repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on UTAPL's bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating have been revised on the account of continuous delays
in servicing of debt obligations by the company.
Detailed description of the key rating drivers
At the time of last rating on May 2, 2017 the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Delay in debt servicing obligations: As per the interaction with
the banker, there are ongoing delays in the repayment of
term loan and the account has been classified as SMA-0.
UTAPL was incorporated in September, 2011 for manufacturing of
steel tools and accessories required in the oil and gas industry.
The company is based in Pune (Maharashtra). The company's major
product was mandrel bars and other products included thread
protectors and helical anchors.
VIJAYASREE COTTON: CRISIL Keeps B Rating in Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with Vijayasree Cotton
Syndicate (VCS) for obtaining information through letters and
emails dated December 31, 2017 and June 29, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 VCS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VCS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Based on the last available information, the rating on bank
facilities of VCS continues to be 'CRISIL B/Stable Issuer not
cooperating.
Established in 2007 as a proprietorship concern, VCS is engaged
in ginning and pressing of raw cotton; it sells cotton lint and
cotton seeds. The firm, promoted by Ms. S Jayasree, is based in
Guntur (Andhra Pradesh).
VIVO MOBILE: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Vivo Mobile
India Private Limited's (Vivo India) Long-Term Issuer Rating at
'IND BB'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR7 mil. Non-convertible debentures (NCDs) due on
December 23, 2019 ISIN INE294W08010 coupon rate 3% issued
on December 22, 2016 affirmed with IND BB/Stable rating.
KEY RATING DRIVERS
Weak Financial Risk Profile: Ind-Ra expects Vivo India to
continue to incur EBITDA losses till FY20 on account of thin
gross margins and high advertisement expenses, thus remaining
vulnerable to the refinancing risk arising from INR7 billion NCDs
falling due in December 2019. However, the company would be able
to make interest payments (INR210 million) using cash and
equivalents (unaudited FY18: INR375 million).
Vivo India had accumulated losses of INR4.3 billion on March 31,
2018. The company's working capital cycle is completely funded
through trade creditors. The EBITDA losses due to continued heavy
advertisement and sales promotion expenditure would lead to a
weak debt service coverage ratio, posing a refinance risk during
the redemption year.
Capex and Cash Flow: Vivo India incurred a capex amounting to
INR2.4 billion during FY17-FY18 for the installation of six
surface-mount technology (SMT) lines and increasing the
assembling capacity to 16.2 million units (FY16: 1 million unit).
Cash flow from operations turned positive in FY18, majorly on
account of the improvement in working capital cycle (FY18:
negative 32 days; FY17: negative 17 days).
Sales Promotion to Weigh on EBITDA: The ratings are constrained
by the uncertainty over EBITDA turning positive in the near term.
EBITDA losses reduced to INR1 billion in FY18 (FY17: INR2.2
billion) due to an 85% yoy improvement in revenue to INR111.5
billion in FY18 due to a higher demand and increased capacity.
The company expects to improve its operating margins by
rationalizing channel margins and increasing sales through
launching products across various price-points, developing
innovative products (under-display finger print scanner) and
strengthening offline presence. The management however has
indicated that it would continue to spend sizeable amounts (7%-
10% of revenue) on sales promotions.
Shift in Strategy; Reduced Market Share: Vivo India's shipment
market share significantly declined year-on-year in 1Q18, due to
the combined effect of competitive pressure from Xiaomi
Technology India Private Limited's aggressive marketing strategy
along with a 'hift in Vivo's own strategy. As against its earlier
strategy of spending aggressively on advertisements at all
retails outlets and providing high margins to retailers to
promote sales, the company has reduced the margins offered to
retailers and has rationalized its distribution to be available
at fewer counters which have strong visibility and sales. This
strategy would improve its margins and enable it to make focused
investments to increase market share.
Management expects to achieve 10%-15% yoy revenue growth during
FY19-FY22, on account of new product launches and improved focus
on online and offline sales. However, gaining market share on a
sustained basis would be challenging, given changing customer
preferences and low brand loyalty.
Domestic Manufacturing to Increase: Assembling capacity of the
company increased to 16.2 million units in FY18 (FY17: 12 million
units). The company would be gradually increasing the production
capacity to 25 million units by FY22, to meet the increased
demand requirement.
At FYE18, the company had six SMT lines, running at a capacity
utilization level of 87%, having an annual capacity of producing
18 million printed circuit boards. Vivo India intends to increase
its capacity to 10 SMT lines, by adding 1 line per year till
FY22, thereby increasing the production capacity by 3 million
annually.
Forex Risk; Intense Competition: The company imports over 95% of
its material requirements, which exposes it to foreign exchange
fluctuation risk. Also, intense competition leaves less
flexibility to pass on price increases to customers. However,
the company is increasing local manufacturing of printed circuit
boards, which make up around 50% of the smartphone's making cost,
which would reduce the impact of rupee depreciation.
Industry Risks: The ratings factor in industry risks such as
rapid technological changes, changing consumer preferences and
competitive pricing pressures. Other risks include forex
volatility resulting from imports; this is partially mitigated by
increasing the mix of indigenous sourcing/manufacturing.
RATING SENSITIVITIES
Positive: A sustained improvement in the overall financial risk
profile could be positive for the ratings.
Negative: Sustained deterioration in the overall financial risk
profile could be negative for the ratings.
COMPANY PROFILE
Incorporated in August 2014, Vivo India is engaged in
manufacturing and selling of smartphones and wholesale trading of
mobile spare parts and accessories.
WONDERCHEF HOME: CRISIL Maintains B Rating in Cooperating
---------------------------------------------------------
CRISIL has been consistently following up with Wonderchef Home
Appliances Private Limited (Wonderchef) for obtaining information
through letters and emails dated December 31, 2017 and June 29,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
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 Wonderchef, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on
Wonderchef is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB Rating category or lower'.
Based on the last available information, the rating on bank
facilities of Wonderchef continues to be 'CRISIL B/Stable Issuer
not cooperating'
Wonderchef markets kitchen appliances, cookware, and bakeware.
The company, incorporated in 2009, is promoted by Mr. Sanjeev
Kapoor (chef) and Mr. Ravi Saxena and is based in Mumbai.
===============
M A L A Y S I A
===============
CN ASIA: Uplifted from PN17 Category Effective July 24
------------------------------------------------------
CN Asia Corporation Berhad on July 23, 2018, said that the
Company had regularised its financial condition and no longer
triggers any of the criteria under Paragraph 2.1 of Practice Note
17 ("PN17") of the Main Market Listing Requirements.
"Consequently, after due consideration of all facts and
circumstances of the matter, Bursa Securities has decided to
approve the application of CN Asia for the upliftment from being
classified as a PN17 company. As a result thereof, the upliftment
of CN Asia will be effective on July 24, 2018," CN said.
CN Asia Corporation Berhad and its subsidiaries manufacture and
trade tanks, dish ends, pressure vessels, and pipes for the
petroleum industry. The Company also has operations in
specialized engineering and fabrication works and also provides
repairing and leasing services of transportable containers for
hazardous chemicals.
The company has been a Practice Note 17 issuer since May 2015. CN
Asia triggered Paragraph 2.1(e) of the Practice Note 17 of the
Main Market Listing Requirements of Bursa Malaysia Securities
Berhad as the Company's Auditors have expressed an emphasis of
matter on the Company's ability to continue as going concern in
the Company's latest annual audited financial statements for the
financial year ended Dec. 31, 2014, and the shareholders' equity
of the Company on a consolidated basis is 50% or less of the
issued and paid-up capital of CNASIA in the Company's unaudited
quarterly report for the first financial quarter ended March 31,
2015.
=================
S I N G A P O R E
=================
PACIFIC RADIANCE: Commences Restructuring Proceedings
-----------------------------------------------------
Pacific Radiance Ltd on July 23, 2018, made an application to the
Singapore High 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 the Company
(b) except with the leave of Court,
(i) no legal proceedings may be commenced or continued
against the Company,
(ii) no execution, distress or other legal process against
any property of the Company shall be commenced, continued
or levied,
(iii) no steps to enforce any security over any property of
the Company or to repossess any goods held by the Company
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 the Company may be
enforced (collectively the relief sought in (a) and (b), the
"Moratorium") for a period from the date of the grant of the
Application until December 11, 2018 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 the Company (the "Automatic Moratorium").
Pacific Radiance said the Automatic Moratorium and the
Moratorium, if granted, will allow the Group an opportunity and
adequate time to continue to finalise the restructuring and
investment.
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.
As reported in the Troubled Company Reporter-Asia Pacific on
May 31, 2018, the board of directors of Pacific Radiance Ltd. and
together with its subsidiaries, intends to pursue 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).
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 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.
*********
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 ***