/raid1/www/Hosts/bankrupt/TCRAP_Public/180928.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, September 28, 2018, Vol. 21, No. 193
Headlines
A U S T R A L I A
ANAVASS PTY: First Creditors' Meeting Set for Oct. 8
AVIATION 3030: ASIC Asks Court to Appoint Provisional Liquidator
MEDALLION TRUST 2018-1: S&P Assigns BB Rating to Cl. E Notes
METROPOLITAN DESIGN: Director Charged With Breaching Duties
OFFICE EQ: Second Creditors' Meeting Set for Oct. 11
PEAKBOUND FINANCIAL: First Creditors' Meeting Set for Oct. 8
RETAIL PROPERTY: Second Creditors' Meeting Set for Oct. 8
ROOF RIGHT: Second Creditors' Meeting Set for Oct. 5
UNITED SECURITY: Second Creditors' Meeting Set for Oct. 8
ZEEV KITCHENS: First Creditors' Meeting Set for Oct. 8
C H I N A
CHINA INTERNATIONAL: Moody's Keeps Standalone Assessment at Ba1
H O N G K O N G
PANDA GREEN: S&P Lowers Issuer Credit Rating to 'B', Outlook Neg.
I N D I A
A.G.S. RATHNA: CRISIL Assigns D Rating to INR6cr Secured Loan
ABHINANDAN EXPORTS: Ind-Ra Assigns 'B' Issuer Rating
AGASTI SAHAKARI: CARE Hikes Rating on INR20cr LT Loan to B+
ARTEK ENTERPRISES: Ind-Ra Maintains B+ Rating in Non-Cooperating
BHAVANAM TEXTILES: CARE Migrates B+ Rating to Not Cooperating
BHOPAL SWITCHGEARS: Ind-Ra Migrates B+ Rating to Non-Cooperating
BKM INDUSTRIES: CARE Lowers Rating on INR80cr Loan to D
CHANDRAKONA COLD: Ind-Ra Migrates B LT Rating to Non-Cooperating
CRAFT INT-DECOR: CRISIL Withdraws B+ Rating on INR3.5cr Loan
CUTTACK RESINS: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating
FLOOR GARDENS: CRISIL Hikes Rating on INR6cr Loan to B+
GAGAN AGRO: CARE Assigns 'D' Rating to INR15.66cr LT Loan
GMR HYDERABAD: CARE Reaffirms D Rating on INR1552.92cr Loan
GOPAL SHIVHARE: CARE Reaffirms D Rating on INR5cr LT Loan
GREEN WOODCRAFTS: CRISIL Reaffirms B+ Rating on INR3cr Loan
GVNS TOLLWAY: Ind-Ra Lowers Long Term Issuer Rating to 'D'
HARROW EDUCATIONAL: CARE Migrates D Rating to Not Cooperating
HEMALI INVESTMENT: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
HILLSFOOD AGRO: CARE Lowers Rating on INR8.96cr Loan to D
IL&FS FINANCIAL: CARE Cuts Rating on INR4,800cr Loan to D
INDEXONE INFRACON: Ind-Ra Maintains BB+ Rating in Non-Cooperating
INFRASTRUCTURE LEASING: CARE Cuts INR9,641.94cr Loan Rating to D
INTEGRATED INDUCTION: CARE Assigns B+ Rating to INR7cr LT Loan
JEEVANDEEP PRAKASHAN: Ind-Ra Keeps BB Rating in Non-Cooperating
K.R.R. ENGINEERING: CRISIL Ups Rating on INR3.00cr Loan to B-
KALPATARU COLD: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
KAMLA SHIVHARE: CARE Reaffirms D Rating on INR4.70cr Loan
KUDU INDUSTRIES: Ind-Ra Maintains BB- Rating in Non-Cooperating
LALL OVERSEAS: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
LAXMINARAYAN SHIVHARE: CARE Lowers Rating on INR7cr Loan to D
MITTAL HOSPITALS: Ind-Ra Maintains BB- Rating in Non-Cooperating
NANDRAJ RICE: Ind-Ra Retains B- Issuer Rating in Non-Cooperating
NECHUPADAM CONSTRUCTIONS: CARE Reaffirms B- on INR16.5cr Loan
NILSHIKHAA INFRAA: Ind-Ra Affirms 'BB+' LT Rating, Outlook Stable
PRADEEP TRANSCORE: CRISIL Reaffirms B+ Rating on INR5.5cr Loan
PRAFULLYA COLD: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
RAJ CONSTRUCTION: Ind-Ra Assigns 'BB-' Issuer Rating
RD CLEANTEACH: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
RENUKA CONSTRUCTIONS: CRISIL Retains B Rating in Not Cooperating
S.D.S. ELECTRONICS: CARE Lowers Rating on INR4cr LT Loan to D
S. M. AUTOSTAR: CARE Lowers Rating on INR7.99cr Loan to D
S. S. OIL: CRISIL Maintains B Rating in Not Cooperating Category
SAI SWADHIN: CRISIL Maintains B Rating in Not Cooperating
SARVOTTAM ATTA: CARE Lowers Rating on INR18cr Loan to D
SENATOR MOTORS: CRISIL Maintains D Rating in Not Cooperating
SHREE KRISHAN: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
SHREE SHAKAMBARI: CRISIL Maintains B Rating in Not Cooperating
SOUBHAGYA PROCESSOR: CRISIL Maintains B Rating in Not Cooperating
SPRAY ENGINEERING: CARE Lowers Rating on INR21cr LT Loan to D
SRI LAXMI: CRISIL Maintains B+ Rating in Not Cooperating Category
SRI BHAGYALAKSHMI: CRISIL Maintains B+ Rating in Not Cooperating
SUVILAS PROPERTIES: CRISIL Maintains B Rating in Not Cooperating
SWAMBHUNATH COLD: CRISIL Reaffirms B- Rating on INR8.12cr Loan
TRIDEV RESINS: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
U. K. PAPER: CRISIL Withdraws B- Rating on INR5cr Cash Loan
VIJIT INTERNATIONAL: CARE Lowers Rating on INR6cr LT Loan to D
J A P A N
MITSUI OSK: Egan-Jones Lowers Senior Unsecured Ratings to C
M A L A Y S I A
BERJAYA MEDIA: 1Q Loss Widens to MYR2.75MM Due to Lower Revenue
N E W Z E A L A N D
MAINZEAL: Directors Ignored Risk for Almost a Decade, Court Hears
S I N G A P O R E
AUSGROUP LTD: Noteholders to Vote on Maturity Date Extension
COMPACT METAL: Again Adjourns Scheme Meeting on Restructuring
T A I W A N
ACER INC: Egan-Jones Raises Sr. Unsecured Ratings to BB+
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A U S T R A L I A
=================
ANAVASS PTY: First Creditors' Meeting Set for Oct. 8
----------------------------------------------------
A first meeting of the creditors in the proceedings of Anavass
Pty. Ltd., trading as Clippers of Casey, Victorian College of Dog
Grooming, and Clipper World, will be held at Chartered
Accountants Training Centre at Level 18, Bourke Place, 600 Bourke
Street, in Melbourne, Victoria, on Oct. 8, 2018, at 2:00 p.m.
Justin Howlett and Andrew MacNeill of SMB Advisory were appointed
as administrators of Anavass Pty on Sept. 25, 2018.
AVIATION 3030: ASIC Asks Court to Appoint Provisional Liquidator
----------------------------------------------------------------
The Australian Securities and Investments Commission has applied
to the Federal Court of Australia for the appointment of
provisional liquidators to Aviation 3030 Pty Ltd elated to that
company's operation of a property investment scheme involving
land at Point Cook, Victoria.
ASIC is seeking:
* the appointment of George Georges and John Lindholm of
Ferrier Hodgson as provisional liquidators of Aviation;
and
* orders requiring the provisional liquidators to provide
a report to the court which sets out, among other things,
the identity of Aviation investors (which includes
shareholders and unitholders), the financial position of
Aviation, and an opinion as to the validity of the issue of
63% of shares in Aviation to a director and former director.
The grounds of ASIC's application include that:
* there is a justifiable lack of confidence in Aviation's
management;
* Aviation issued shares without a prospectus when one was
required; and
* the Aviation scheme is an unregistered managed investment
scheme which was required to be registered with ASIC.
ASIC's application has been listed for hearing in the Federal
Court of Australia in Melbourne on Sept. 27, 2018 at 10:15 a.m.
Once the provisional liquidators' report has been provided to the
Court, ASIC will consider whether it should seek orders from the
Court for the winding up of Aviation and the managed investment
scheme it operates through five separate trusts (the Aviation
scheme). ASIC will also consider whether to seek orders to wind
up all of the trustee companies involved in the Aviation scheme,
each of which are controlled by Aviation directors, as follows:
1. Aviation3030 Investment Pty Ltd
2. Aviation3030 Holdings Pty Ltd
3. Aviation 3030 Heng Ly Pty Ltd
4. Point Cook Aviation3030 Pty Ltd
5. Aviation 3030 HL Pty Ltd.
Aviation purchased property at Point Cook for AUD7.8 million in
2011 with a view to rezoning the property to increase its value.
To facilitate the purchase and rezoning of the property, Aviation
raised around AUD10.59 million from approximately 73 shareholders
and unitholders. On Sept. 13, 2012 the Aviation property was
rezoned from Green Wedge Zone to Farming and appears to have
significantly increased in value.
On July 6, 2018 Aviation entered into a contract for the sale of
the land at Point Cook. This contract was formally terminated on
Aug. 17, 2018 and ASIC is not aware of there being any current
sale contract.
Previous ASIC action
ASIC has previously, in 2016, issued court proceedings against
Aviation to limit the ability of Aviation to deal with the
proceeds of the sale of the Aviation property, pending further
disclosures being made to investors about a share issue in 2016
to companies owned by a director and former director, and an
opportunity to obtain independent advice concerning their
investments.
By agreement with ASIC, Aviation provided corrective disclosure
to investors in September 2016 about the 2016 share issue to
companies owned by a director and former director. The freezing
order was vacated when it became apparent that the sale would not
then proceed.
At the first case management hearing on Sept. 27, 2018 the Court
directed that:
* ASIC's application to appoint provisional liquidators to
Aviation 3030 Pty Ltd be listed for hearing on Oct. 29,
2018 with an estimate of 5 days;
* Lao Holdings Pty Ltd and Khay Suong Taing Aviation 3030 Pty
Ltd be joined as intervenors; and
* the Defendants and the Intervenors serve their evidence by
Oct. 24, 2018.
MEDALLION TRUST 2018-1: S&P Assigns BB Rating to Cl. E Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for Medallion Trust Series 2018-1.
The ratings reflect:
-- The fact that this is not a closed pool, which means that new
assets may be added during the transaction's revolving
period. However, the purchase of new assets is subject to
meeting eligibility criteria and S&P Global Ratings' review
of the collateral pool before loan acquisition.
-- S&P's view that transaction the credit support is sufficient
to withstand the stresses it applies. This credit support
comprises note subordination and lenders' mortgage insurance
to 15.0% of the portfolio, which covers 100% of the face
value of these loans, accrued interest, and reasonable costs
of enforcement.
-- S&P's expectation that the various mechanisms to support
liquidity within the, including a liquidity
facility equal to 0.80% of the invested amount of all notes
and principal draws, are sufficient under its stress
assumptions to ensure timely payment of interest.
-- The availability of a AUD150,000 extraordinary expense
reserve funded upfront by Commonwealth Bank of Australia
(CBA) to support trust expenses. This reserve will be topped
up with available excess spread if drawn on.
-- The fixed- to floating-rate interest-rate swap, which is
provided by CBA to hedge the mismatch between receipts from
any fixed-rate mortgage loans and the variable-rate RMBS.
-- The underwriting standards and centralized approval process
of the seller, CBA.
-- The issuer has informed S&P Global Ratings Australia Pty Ltd.
that the issuer will be publically disclosing all relevant
information about the structured finance instruments that are
subject to this rating report.
RATINGS ASSIGNED
Medallion Trust Series 2018-1
Class Rating Amount
(mil. A$)
A1 AAA (sf) 1,500.0
A2 AAA (sf) 61.96
B AA (sf) 30.98
C A (sf) 17.94
D BBB (sf) 6.53
E BB (sf) 6.53
F NR 6.53
NR--Not rated.
METROPOLITAN DESIGN: Director Charged With Breaching Duties
-----------------------------------------------------------
Allan Ronald Saunders of Stafford Heights, Queensland, has been
charged with thirteen counts of breaching his director duties.
The Australian Securities and Investments Commission alleges that
between April 13, 2015 and Sept. 22, 2015, Mr. Saunders, the sole
director of Metropolitan Design Pty Ltd ACN 144 816 240 at this
time, redirected debtor payments that were owed to Metropolitan
Design to his personal sole trader bank account. In doing so, Mr
Saunders used his position dishonestly with the intention of
gaining an advantage for himself.
Metropolitan Design was placed into liquidation on Sept. 30, 2015
and owed its sole creditor, the Australian Taxation Office (ATO),
AUD235,626. By denying the ATO access to the money transferred to
his personal sole trader bank account, Mr. Saunders engaged in
illegal phoenix activity.
Mr. Saunders appeared before the Sandgate Magistrates Court on
September 17, 2018 and did not enter a plea.
The matter was adjourned for mention on Oct. 19, 2018, at Pine
Rivers Magistrates Court.
The Commonwealth Director of Public Prosecutions is prosecuting
the matter.
Mr. Saunders has been charged with thirteen counts of s184 of the
Corporations Act 2001 (Commonwealth).
ASIC commenced an investigation after receiving a report from the
liquidator of Metropolitan Design, Mr. Anthony Warner. ASIC
funded Mr. Warner from the Assetless Administration Fund.
ASIC is a member of the Phoenix Taskforce, which comprises
federal, state and territory government agencies who collaborate
to combat illegal phoenix activity. The aim of the Phoenix
Taskforce is to provide a whole-of-government approach to
identify, disrupt and prosecute those who engage in or facilitate
illegal phoenix activity.
OFFICE EQ: Second Creditors' Meeting Set for Oct. 11
----------------------------------------------------
A second meeting of creditors in the proceedings of Office EQ Pty
Ltd has been set for Oct. 11, 2018, at 11:00 a.m. at History
House, 133 Macquarie Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 10, 2018, at 4:00 p.m.
Tim Heesh of TPH Insolvency was appointed as administrator of
Office EQ on Sept. 5, 2018.
PEAKBOUND FINANCIAL: First Creditors' Meeting Set for Oct. 8
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Peakbound
Financial Services Pty Ltd and Peakbound Holdings Pty Ltd will be
held at the offices of BDO at Level 11, 1 Margaret Street, in
Sydney, NSW, on Oct. 8, 2018, at 10:00 a.m.
Andrew Thomas Sallway and Andrew Fielding of BDO were appointed
as administrators of Peakbound Financial on Sept. 25, 2018.
RETAIL PROPERTY: Second Creditors' Meeting Set for Oct. 8
---------------------------------------------------------
A second meeting of creditors in the proceedings of Retail
Property Advisors Pty Ltd has been set for Oct. 8, 2018, at
11:00 a.m. at the offices of APL Insolvency, Level 5, 150 Albert
Road, in South Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 5, 2018, at 5:00 p.m.
Jeremy Robert Abeyratne of APL Insolvency was appointed as
administrator of Retail Property on Sept. 3, 2018.
ROOF RIGHT: Second Creditors' Meeting Set for Oct. 5
----------------------------------------------------
A second meeting of creditors in the proceedings of Roof Right
Australia Pty Ltd has been set for Oct. 5, 2018, at 9:30 a.m. at
the offices of O'Brien Palmer, Level 9, 66 Clarence Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 4, 2018, at 4:00 p.m.
Liam Thomas Bailey of O'Brien Palmer was appointed as
administrator of Roof Right on Aug. 30, 2018.
UNITED SECURITY: Second Creditors' Meeting Set for Oct. 8
---------------------------------------------------------
A second meeting of creditors in the proceedings of United
Security Enterprises Pty Ltd has been set for Oct. 8, 2018, at
3:00 p.m. at the offices of SV Partners Sydney, Level 7, 151
Castlereagh Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 8, 2018, at 4:00 p.m.
Shumit Banerjee and Jason Lloyd Porter of SV Partners Sydney were
appointed as administrators of United Security on Aug. 31, 2018.
ZEEV KITCHENS: First Creditors' Meeting Set for Oct. 8
------------------------------------------------------
A first meeting of the creditors in the proceedings of Zeev
Kitchens Management Pty Ltd will be held at the offices of SV
Partners Melbourne at Level 17, 200 Queen Street, in Melbourne,
Victoria, on Oct. 8, 2018, at 11:00 a.m.
Michael Carrafa and Fabian Kane Micheletto of SV Partners were
appointed as administrators of Zeev Kitchens Management Pty Ltd
on Sept. 25, 2018.
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C H I N A
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CHINA INTERNATIONAL: Moody's Keeps Standalone Assessment at Ba1
---------------------------------------------------------------
Moody's Investors Service has affirmed the Baa1 long-term and P-2
short-term issuer ratings of China International Capital
Corporation Limited, and maintained its standalone assessment at
Ba1.
The outlook of CICC is stable.
At the same time, Moody's has withdrawn the outlook on CICC's
long-term issuer rating for business reasons.
RATINGS RATIONALE
The affirmation of CICC's ratings takes into account the firm's
stable financial position and entrenched franchise despite
challenging market conditions. In addition, the affirmation
considers that the firm will continue to enjoy a very high level
of support from the Government of China (A1 stable) due to its
government ownership and strategic role.
CICC's Baa1 long-term issuer rating incorporates its standalone
assessment of Ba1 and a three-notch uplift based on Moody's
assumption of a very high level of support from and a very high
level of dependence on the Government of China.
The Ba1 standalone assessment reflects CICC's: (1) strong
investment banking and wealth management franchise in the onshore
and offshore markets; (2) abundant liquidity and diversified
funding; and (3) low level of proprietary equity investment and
stock-pledged lending exposures.
Offsetting these credit strengths are the risks arising from the
rapid increase of CICC's total assets and fixed-income securities
investments. CICC's standalone assessment also takes into account
the challenging operating environment for securities firms in
China.
Over the past two decades, CICC has evolved into a flagship
investment bank that plays a leading role in mega state-owned
enterprise-related transactions and cross-border deals.
CICC completed the acquisition of China Investment Securities
Company Limited (CISC) in March 2017. The acquisition has
materially expanded CICC's branch network, strengthened its
retail brokerage franchise, and improved its funding and
liquidity metrics on a consolidated basis.
CICC's profit for the period attributable to shareholders of the
company and holders of other equity instruments increased by
46.8% in the first half of 2018, driven by the strong growth in
investment banking and wealth management fee income, the
investment income relating to total return swaps, as well as the
consolidation of CISC. In comparison, most other Chinese
securities firms reported a declining profitability during the
same period because of the sluggish A-share market performance
and the rising credit cost for stock-pledged lending business.
Moody's also notes that CICC was not among those major Chinese
securities companies that made equity investments equivalent to
20% of their net assets as of July 31, 2015 to support the market
in Q3 2015. It also has a lower stock-pledged lending exposure
when compared with other Chinese securities companies. At June
30, 2018, its aggregate stock-pledged lending balance amounted to
RMB10.3 billion, or 3.9% of its total assets.
In recent years, CICC has rapidly expanded its total assets and
securities investments. CICC's Moody's-adjusted leverage - as
measured by consolidated total assets/equity attributable to
holders of ordinary shares - increased to 6.8x at June 30, 2018
from 5.8x at the end of 2016. Among its securities investments, a
substantial proportion of equity securities is from its client
facilitation business, which is fully or partially funded by
clients.
The assumption of a very high level of government support, if
needed, is based on CICC's long-standing links with the Chinese
government. The firm was established in 1995 with the strategic
purpose of raising funds for China's economic development.
Moody's believes that while CICC's business mix has evolved over
time, its strong investment banking expertise remains relevant to
China's reform agenda for state-owned enterprises. At June 30,
2018, Central Huijin Investment Ltd., a core investment arm of
the Chinese government, held a 55.75% share in CICC.
What Could Change the Rating - Up
Moody's could upgrade CICC's ratings if the firm: (1) continues
to improve its funding and liquidity ratios; (2) maintains good
profitability, despite intensifying competition and market
fluctuations; (3) lowers its pretax earnings volatility; and (4)
ensures the smooth integration of CISC's operations.
Moody's could also upgrade CICC's ratings if: (1) there is a
material improvement in the maturity of China's capital markets,
including more comprehensive regulatory framework, lower
volatility and higher proportion of institutional investors; and
(2) industry consolidation enhances the pricing power of leading
companies.
What Could Change the Rating - Down
Moody's could downgrade CICC's ratings if Moody's assesses that
the government's willingness and ability to support the firm have
weakened.
Moody's could also downgrade CICC's ratings if the firm: (1)
encounters a material deterioration in profitability; (2)
experiences a material weakening in its financial position, for
example, because of a substantial increase in leverage or a
deterioration in its liquidity position; or (3) becomes subject
to regulatory sanctions that impair its franchise and management
stability.
================
H O N G K O N G
================
PANDA GREEN: S&P Lowers Issuer Credit Rating to 'B', Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Panda Green Group Ltd. (PGE) to 'B' from 'B+'. The outlook is
negative. S&P said, "At the same time, we lowered the issue
rating on the company's senior unsecured notes to 'B-' from 'B'.
PGE is a Hong Kong-listed solar power operator with a
consolidated installed capacity of about 1.8 gigawatt as of
June 30, 2018."
S&P said, "We lowered the rating to reflect PGE's strained
liquidity because of its considerable short-term debt maturity,
meager net operating cash flow, and higher interest expenses. The
downgrade also reflects the potential rise in its leverage given
PGE's acquisitive appetite and its capital expenditure plan.
"We expect PGE's liquidity to remain tight over the next 12
months because its significant short-term debt maturity is
unlikely to be covered by its internal liquidity sources. This is
also exacerbated by a lack of visibility of external funding
sources."
PGE will have HK$5.3 billion debt maturing from July 2018 to June
2019. In the first half of 2018, the company had net operating
cash outflow of HK$61 million, due largely to a material increase
in trade, bills, and tariff-adjustment receivables. S&P said,
"While we expect government subsidy payments for past commitments
to be accelerated (the "seventh batch" of government projects) in
the second half of 2018, we expect PGE's total subsidies will
continue to increase as the company awaits approvals for
subsidies on "batch 8" or after projects."
PGE's receipt of outstanding renewable subsidies for its plants
in Inner Mongolia will partly alleviate pressure on its working
capital. However, the amount received of Chinese renminbi (RMB)
198 million represents approximately 8% of the total receivables
of RMB2.45 billion in aggregate for its solar farms as of end-
June 2018. S&P said, "We have low visibility on when PGE will
receive the remaining subsidy. In our view, the risk to the
company's financial position, particularly liquidity, is unlikely
to be alleviated until we see a track record of the government
paying these subsidies on a timely and sufficient basis."
PGE's strategy to use debt to fund capacity growth could further
erode its profitability and financial ratios. In the first half
of 2018, its total capital expenditure amounted to HK$1.02
billion, up 55% year-on-year. The company plans to increase its
capacity by 300 megawatt per year between 2018 and 2020, keeping
its capital expenditure elevated at about HK$1.7 billion-HK$1.8
billion per year. This will dampen the company's cash flow
leverage as seen its ratio of funds from operations (FFO) to debt
will likely to remain below 5%, and debt to EBITDA higher than
10x in the next 12 months.
S&P said, "Nevertheless, we believe PGE benefits from relatively
diversified funding channels. PGE's relationship with its largest
shareholder China Merchant Group supports reasonable credit
relationships with some Chinese state-owned banks. The company
also has a track record in attracting equity investors (such as
China Huarong Asset Management, Orix Corp., and Asia Climate
Partners).
"We continue to view solar power generation as a key contributor
to PGE's EBITDA and FFO over the next 12-18 months. In our view,
the company is unlikely to divert financial resources from its
core business to initiate its 5.2 gigawatt hydropower project in
Tibet in the next 12-24 months at least. The hydro project would
likely increase PGE's execution risk because the company has
limited experience in constructing, operating, and maintaining
such a project. The Tibet project is much larger in scale, has a
much longer construction lead time, and is in a more remote and
elevated geographical location than PGE's existing solar project.
"The negative outlook on PGE reflects our view of the uncertainty
of timely and sufficient receipt of unpaid government renewable
subsidies, and increasing leverage due to elevated capital
expenditure. These factors could constrain the company's ability
to meet its debt maturity payments over the next 12 months.
"We could lower the rating if we see signs of further
deterioration in liquidity, including but not limited to
difficulty in refinancing its debt, increasing operating cash
flow deficits due to prolonged delays in receipt of subsidy
receivables, and continued sizable debt-funded expansion.
"We may also lower the rating if PGE's association with its major
shareholder China Merchants Group weakens, which in our view may
weaken the Chinese bank's funding support to PGE.
"We could revise the rating if PGE's ratio of FFO to debt
approaches 5.0% and FFO interest coverage improves to about 1.5x
on a sustained basis. This can be achieved if: (1) PGE can
properly manage its refinancing risk; (2) deleverages via an
equity issuance or disposal of project-level shares, and uses the
proceeds to repay debt, and (3) the company is able to maintain a
disciplined approach to capital expenditure and acquisitions.
An improvement in the solar power operating conditions, such as
competitive lending costs, increasing utilization hours, and
better execution on dispatch priority, could also increase PGE's
FFO and lead to improved metrics."
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I N D I A
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A.G.S. RATHNA: CRISIL Assigns D Rating to INR6cr Secured Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of A.G.S. Rathna Stores Private Limited (AGS).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan .75 CRISIL D (Assigned)
Secured Overdraft
Facility 6.00 CRISIL D (Assigned)
The rating reflects delays by AGS in servicing its debt
obligations on account of working-capital-intensive operations.
The rating factors in the company's modest scale of operations,
exposure to intense competition, and below-average financial risk
profile. These weaknesses are offset by the promoter's extensive
experience and established brand image of 'Rathna Stores' in
Chennai.
Analytical Approach
Unsecured loans of INR12.10 crore as on March 31, 2018 from
promoters have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive trading
business: Intense competition in the consumer durables and home
appliances trading segment continues to constrain scalability:
revenue was INR32 crore in fiscal 2018.
* Below-average financial risk profile: Financial risk profile is
below average, with gearing of 7.96 times as on March 31, 2018,
and interest coverage ratio of 1.2 times in fiscal 2018.
Strength
* Promoter's extensive experience and established brand image of
Rathna Stores in Chennai: Benefits from the promoter's experience
of more than two decades, and established relations with major
suppliers should continue to support business risk profile.
Furthermore, the company has an established presence and strong
brand recall in Chennai.
Incorporated in 2013 by Mr S Ganesh, AGS runs two retail stores
in Chennai that sells consumer durables, household steel vessels,
and furniture.
ABHINANDAN EXPORTS: Ind-Ra Assigns 'B' Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Abhinandan
Exports Limited (AEL) a Long-Term Issuer Rating of 'IND B'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR75 mil. Fund-based limits assigned with IND B/Stable
rating; and
-- INR30 mil. Non-fund-based limits assigned with IND A4 rating.
KEY RATING DRIVERS
The ratings reflect AEL's tight liquidity position as reflected
by full utilization of the fund-based limits with few instances
of overutilization during the 12 months ended July 2018.
The ratings are constrained by the company's small scale of
operations as indicated by revenue of INR188 million in FY18
(FY17: INR444 million). The fall in the revenue was on account of
a decline in sales volume. The company's return on capital
employed was 10% in FY18 and EBITDA margin was 4% (2.5%). Despite
the decrease in revenue, the margins improved on account of
fluctuation in fibers prices. FY18 financials are provisional in
nature.
The ratings also factor in AEL's modest credit metrics as
indicated by interest coverage (absolute EBITDA/interest cost) of
1.7x in FY18 (FY17:1.3x) and net financial leverage (net
debt/absolute EBITDA) of 9.9x (1.4x). The significant
deterioration in the net leverage is attributed to an increase in
its working capital debt.
However, the ratings are supported by the company's promoter's
one decade of experience in the textile industry.
RATING SENSITIVITIES
Negative: Deterioration in the liquidity position on a sustained
basis will be negative for the ratings.
Positive: A substantial improvement in the liquidity position
will be positive for the ratings.
COMPANY PROFILE
Incorporated in 1985, AEL is engaged in the trading of man-made
fibers such as synthetics fibers and acrylic fibers.
AGASTI SAHAKARI: CARE Hikes Rating on INR20cr LT Loan to B+
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Agasti Sahakari Sakhar Karkhana Limited (ASSKL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term bank 20.00 CARE B+; Stable Revised from
Facilities CARE B; Stable
Detailed Rationale & Key Rating Drivers
The revision in rating assigned to the bank facilities of ASSKL
derives strength from growth in Total operating income,
improvement in the sugar Cane Crushing and improvement in
operating cycle. However the rating continues to remain
constrained on account of highly leveraged capital structure of
the company as on March 31, 2018, weak debt protection indicators
during FY18 (refers to the period from April 1 to March 31), high
working capital intensive nature business. The rating however,
continues to derive strength from the long and established track
record of over three decades of the company in the sugar
industry, strong ability of the company to procure sufficient
cane from the command area. The ability of the company to
increase its scale of operations thereby sustaining and
improvement in its profitability, effectively managing its
working capital requirements are the key rating sensitivities.
Detailed description of the key rating drivers
Key rating strengths:
Experienced promoters and long track record of the society in
sugar industry: ASSKL is a co-operative society promoted by Mr.
Madhukarroa Kashinath Pichad (Chairman) and Sitaram gaikar (Vice
chairman) to undertake sugar and sugar related production. Mr.
Madhukarroa Kashinath Pichad is the former MLA and Cabinet
Minister for Tribal Development has a more than three decades of
experience in sugar industry. Mr. Madhukarroa and Mr Sitaram
gaikar is ably supported by Mr. Bhaskar Ghule as a Managing
Director who also has a rich industry experience in the sugar
industry.
Location advantage with adequate cane availability led by cordial
relations with local populace: The sugar plant of ASSKL is
located in the sugarcane cultivation area in village Agastinagar.
The command area of ASSKL comprises of 271 villages with total
land under sugarcane cultivation of about 6902 hectares,
translating into availability of nearly 6.00 lakh MT of sugarcane
(with an average yield of 87MT/hectare). The area has sugarcane
with an average recovery rate of 11%-11.5%. The area is well
irrigated over the years with consistent supply of water through
the Adhala dam. The water from the dam is distributed to
agriculture lands and industries in region through Pravare and
Mula River.
Key rating weakness:
Financial risk profile marked by improved profit margin moderate
gearing and weak debt coverage indicators: The total operating
income (TOI) of ASSKL registered a growth of 42.58% to INR 192.75
crore during FY18 (Audited) as against TOI of INR 135.18 crore
during FY17 (Audited). The PBILDT margin has improved to 7.33%
during FY18 as against 4.42% during FY17 on account of decrease
in procurement price of sugar cane. PAT margin of the society
stood a 0.03% during FY18 as against 0.07% during FY17 and the
society reported PAT of INR 0.06 crore in FY18 as against INR
0.10 crore during FY17. The debt profile of the society mainly
comprises of term loan and pledge loan, the overall gearing of
the society deteriorated and stood at 4.28x as on March 31, 2018
as against 3.09x as on March 31, 2017 e at 0.64x as on March 31,
2017.
Working capital intensive nature of operations: The operating
cycle of the society has improved marginally from 285days in FY17
to 244 days in FY18 led by liquation of sugar inventory. The
working capital requirement is met through pledge loan with total
sanction limit of 140.00 crore as on March 31, 2018
Cyclical and seasonal nature of industry along-with inherent
agro-climatic risks: Sugarcane is the key raw material used for
the manufacture of sugar and sugar-related products. The
availability and yield of sugarcane depends on factors like
rainfall, temperature and soil conditions, demand-supply
dynamics, government policies etc. The production of sugarcane
and hence sugar is cyclical in nature
ASSKL was incorporated under Maharashtra Co-Operative Societies
Act 1960 in a year 1992-93, to undertake sugar and sugar related
production by Mr.Madhukarrao Kashninath Pichad (Chairman) and Mr.
Sitaram Gaikar (Vice Chairman). Mr Madukarrao was the former
member of legislative assembly (MLA). The first crushing season
of the sugar factory was conducted in Sugar Season (SS) 1992-93
with an installed capacity of 2500 TCD.
ARTEK ENTERPRISES: Ind-Ra Maintains B+ Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Artek
Enterprises Private Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR10 mil. Fund-based working capital limit maintained
in non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR49.5 mil. Non-fund-based working capital limit maintained
in non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 30, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1979, Artek Enterprises provides system
integration and networking services such as network security,
voice video data, physical security, audio visuals, renewable
energy and video conferencing to government, semi-government and
private companies. Its head office is located in New Delhi.
BHAVANAM TEXTILES: CARE Migrates B+ Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Bhavanam
Textiles (India) Private Limited (BTIPL) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.23 CARE B+; Stable Issuer not
Facilities cooperating
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BTIPL to monitor the
rating vide email communications dated May 30, 2018, August 1,
2018, August 7, 2018, August 8, 2018, September 3, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the rating. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of publicly available
information which however, in CARE's opinion is not sufficient to
arrive at fair rating. The rating on Bhavanam Textiles (India)
Private Limited's bank facilities will now be denoted as CARE
B+;Stable; 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
Key Rating Weakness
Established track record of promoters in other businesses albeit
inexperience in cotton yarn manufacturing segment: The company
has been promoted by Mr. Bhavanam Rama Koti Reddy and Mrs
Bhavanam Adi Lakshmi. Mr Bhavanam Rama Koti Reddy (Managing
Director) has long established track record in other business
such as trading of chillies and cotton for more than two decades.
However, the business operations of BTIPL are relatively new as
the company was incorporated in February 2013 and the commercial
operations commenced from April 1, 2013. This leads to risks
associated with relatively new operations of the company.
However, the risk is mitigated to an extent given the previous
experience of promoters in trading of cotton. The promoters are
supported by an able management team which includes experienced
professionals, some of whom have more than two decades of
experience in this industry.
Limited track record with small scale of operation and low
profitability: The size and scale of company's operation is small
marked by total operating income of INR55.21 crore in FY17
coupled with relatively low net worth base of INR2.78 crore as on
March 31, 2017 as the company commenced its operations on
April 1, 2013. The PBILDT margin declined from 8.38% in FY16 to
4.50% in FY17 due to increase in material costs. The PAT margin
declined from 1.03% in FY16 to 0.51% in FY17 due to increase in
depreciation costs.
Leveraged capital structure and weak debt coverage indicators:
The capital structure marked by overall gearing ratio improved
from 7.15x in FY16 to 6.96x in FY17 due to increase in the net
Worth.
Presence in highly fragmented industry regulated by the
government: The textile industry is marked by intense competition
with large number of units operating in similar business
resulting in high fragmentation and restricting the
profitability. Thus, spinning players have very low bargaining
power against its customer as well as suppliers. Furthermore, the
cotton prices in India are highly regulated by Government through
MSP (Minimum Support Price) fixed by government, though due to
huge demand-supply mismatch the prices have rarely been below the
MSP. Moreover, exports of cotton are also regulated by government
through quota systems to suffice domestic demand for cotton.
Hence, any adverse change in government policy i.e. higher quota
for any particular year, ban on the cotton or cotton yarn export
may negatively impact the prices of raw cotton in domestic market
and could result in lower realizations and profit.
Raw material price volatility risk: BTIPL is exposed to risk of
price volatility as prices of raw material i.e. raw cotton are
highly volatile in nature and depend upon factors like, area
under production, yield for the year, demand and supply scenario,
export quota decided by government and inventory carry forward of
the last year. The company has to procure raw materials at
significantly higher volume to bargain bulk discount from
suppliers. Furthermore, cotton is seasonal in nature, as sowing
season is done during March to July and harvesting cycle (peak
season) is spread from November to February every year. This
results in a higher inventory holding period for the business.
Thus, aggregate effect of both the above factors results in
exposure of spinners to price volatility risk.
Key Rating Strengths
Satisfactory working capital cycle: The operating cycle improved
from 53 days in FY16 to 49 days in FY17 due to decrease in
invention days and average creditors days.
Strategic location of manufacturing unit: BTIPL's manufacturing
unit is located at Thimmapuram village in Guntur District. The
unit is well connected to Telangana and Andhra Pradesh based
prominent cotton growing belts. Hence, the company's presence in
cotton producing region leads to benefits derived out of lower
logistics expenditure (both on transportation and storage), easy
availability of labour and raw material and consistent demand for
finished goods resulting in sustained revenue visibility. It is
located near several ginning mills due to which the company will
also be saving on bailing charges as cotton lint procured from
these mills can be consumed instead of bale.
Bhavanam Textiles (India) Private Ltd. (BTIPL) was incorporated
on February 27, 2013 by Mr Bhavanam Rama Koti Reddy and Mrs
Bhavanam Adi Lakshmi after the promoters took over the operations
of another company i.e., Pujita Spinning Mills Limited. The
commercial operations of the company commenced from April 01,
2013 and FY14 was the first full year of operation. The company
is engaged in the manufacturing of cotton yarn through its
manufacturing unit at Thimmapuram village, Guntur district,
Andhra Pradesh, with an installed capacity of 13,644 spindles.
In FY17, BTIPL has achieved total operating income of INR55.21
crore and PAT of INR0.28 crore
BHOPAL SWITCHGEARS: Ind-Ra Migrates B+ Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bhopal
Switchgears Pvt Ltd.'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:
-- INR67.5 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating;
-- INR22.50 mil. Non-fund-based working capital limits migrated
to non-cooperating category IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR2.23 mil. Long-term loans migrated to non-cooperating
category with INR B+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 3, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in March 1992, Bhopal Switchgears is engaged in the
designing, manufacturing, and supply, installation and
commissioning of electrical switchgears and control equipment.
BKM INDUSTRIES: CARE Lowers Rating on INR80cr Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BKM Industries Ltd (BKM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 80.00 CARE D Revised from CARE BBB;
Facilities Negative
Short-term Bank 28.50 CARE D Revised from CARE A3+
Facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
BKM takes into account the ongoing delays in debt servicing due
to liquidity mismatch.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: There have been instances of LC
devolvement and the cash credit account remained overdrawn for a
period of more than 30 days. This liquidity mismatch is primarily
due to delay in collection from the debtors and decline in the
revenue since Q1FY19 due to weak demand scenario.
Deterioration in the financial performance of the company in
Q1FY19 marked by cash losses: BKM's operating income declined by
58.32% from previous quarter to INR17.30 crore in Q1FY19 (as
against INR45.05 crore in Q1FY18) on the back of lower execution
of orders. This coupled with under absorption of fixed cost and
execution of less margin products lead to operational losses in
Q1FY19. Further, higher interest expenses resulted in cash losses
during the said quarter. This apart in July 2018, the company had
also decided to discontinue its manufacturing operations at the
Barjora (Bankura, West Bengal) and resultantly reported loss of
INR-0.57 crore in Q1FY19.
Analytical approach: For arriving at the ratings, CARE has
considered the standalone operations of BKM Industries
Limited.
BKM Industries Ltd (BKM) was incorporated on March 25, 2011. It
was a dormant company till October 01, 2013 before the demerger
of packaging division of Manaksia Ltd (ML) to BKM. BKM
manufactures packaging products and aluminium semi-rigid
containers. Major packaging products manufactured by the company
includes (1) Roll on Pilfer Proof closures for the premium liquor
and pharmaceutical sector, (2) Crown closures for carbonated soft
drinks and beer, (3) Plastic closures for carbonated soft drinks
and mineral water sectors, and (4) Metal containers for shoe
polishes, cosmetics and tea. The company currently has
manufacturing facilities located in West Bengal, Telengana and
Dadra & Nagar Haveli. In July 2019, the company has strategically
planned to discontinue its manufacturing operations at the
Barjora (Bankura, West Bengal).
In Q1FY19, BKM Industries Limited reported loss of INR-5.50 crore
(as against PAT of INR1.81 crore in Q1FY18) on total income of
INR17.30 crore (INR45.05 crore in Q1FY18).
CHANDRAKONA COLD: Ind-Ra Migrates B LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Chandrakona Cold
Storage 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 action is:
-- INR72.5 mil. Fund-based limits migrated to non-cooperating
category with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 22, 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 1989, Chandrakona Cold Storage operates a cold
storage in Paschim Mednipur, West Bengal.
CRAFT INT-DECOR: CRISIL Withdraws B+ Rating on INR3.5cr Loan
------------------------------------------------------------
CRISIL has been consistently following up with Craft Int-Decor
Private Limited (CIPL) for obtaining information through letters
and emails dated April 30, 2018, May 18, 2018 and May 23, 2018,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating
Withdrawn)
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating
Withdrawn)
Proposed Long Term 3.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating
Withdrawn)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are 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 CIPL. This restricts CRISIL's
ability to take a forward CIPL is consistent with 'Scenario 4'
outlined in the 'Framework for Assessing Consistency of
Information. Based on the last available information, the rating
on bank facilities of CIPL continues to be 'CRISIL B+/Stable/
CRISIL A4 Issuer Not Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of CIPL
on the request of the company and receipt of a no objection from
its bank. The rating action is in line with CRISIL's policy on
withdrawal of its ratings on bank loans.
Incorporated in 2003 in Bengaluru and promoted by Mr. Naresh
Sudra and his wife, Ms. Usha Sudra, CIPL undertakes interior
decoration work on the basis of drawings and designs provided by
customers. Entire business is based on tenders floated by private
companies for decoration of commercial office spaces.
CUTTACK RESINS: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Cuttack Resins
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 action is:
-- INR70 mil. Fund-based limit migrated to non-cooperating
category with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 25, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated on March 3, 2017, Cuttack Resins is engaged in the
trading of synthetic resins used in the manufacturing of
polyvinyl chloride pipes and molds.
FLOOR GARDENS: CRISIL Hikes Rating on INR6cr Loan to B+
-------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Floor Gardens (FG) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'
and reaffirmed its 'CRISIL A4' rating on the short-term bank
facility.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 6 CRISIL B+/Stable (Upgraded
Credit from 'CRISIL B/Stable')
Letter of Credit 3 CRISIL A4 (Reaffirmed)
The upgrade reflects sustained improvement in financial risk
profile, supported by the promoter's fund infusion which has
resulted in a better capital structure. Networth increased
steadily to INR3.2 crore, while gearing and total outside
liabilities to tangible networth ratio improved to 2.5 times and
2.65 times, respectively, as on March 31, 2018. Business risk
profile remains stable with modest revenue growth and steady
profit margins.
The ratings continue to reflect small scale of operations in the
competitive and fragmented mattress industry, and its average
financial risk profile because of modest networth and high
gearing, and its large working capital requirement. These
weaknesses are partially offset by the promoter's extensive
experience in the home furnishings segment, established customer
base and adequate debt protection metrics.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations in the competitive industry: Small
scale, indicated by revenue of INR16.1 crore in fiscal 2018,
restricts bargaining power with customers and suppliers. The home
furnishings industry is fragmented, with large number of players.
CRISIL believes scale of operations will increase with expansion
of its marketing network and clientele, but will remain small and
continue to constrain the business risk profile.
* Large working capital requirement: Working capital-intensive
operations are reflected in gross current assets of 215 days as
on March 31, 2018, due to inventory of 206 days and receivables
of 21 days. Low credit from suppliers lead to high utilisation of
bank lines.
* Average financial risk profile: The financial risk profile is
constrained by small networth of INR3.2 crore and high gearing
and total outside liabilities to adjusted netowrth ratio of 2.5
times and 2.65 times, respectively, as on March 31, 2018.
Strengths
* Promoter's extensive industry experience and established
customer base: Promoters' extensive experience of over 40 years,
has helped develop healthy relationships with customers in
various countries such as Russia, the US, France, Belgium, and
Middle East. This has helped the firm sustain revenue and
profitability over the past four years.
* Adequate debt protection metrics: Debt protection metrics for
fiscal 2018 were adequate, indicated by interest coverage was
moderate at 3.2 times net cash accrual to total debt ratio of 7%
for fiscal 2018.
Outlook: Stable
CRISIL believes FG will continue to benefit from its promoter's
extensive industry experience. The outlook may be revised to
'Positive' if a significant increase in net cash accrual, through
revenue growth and better profitability, strengthens the
financial risk profile. The outlook may be revised to 'Negative'
if the financial risk profile weakens due to decline in cash
accruals, or stretched working capital cycle.
Set up in 2007 and based in Allepey, Kerala, FG manufactures
coir-based home furnishings. Daily operations are managed by Mr K
A Sugathan.
GAGAN AGRO: CARE Assigns 'D' Rating to INR15.66cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Gagan
Agro and Rice Exporters (GARE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 15.66 CARE D Assigned
Short-term Bank
Facilities 14.00 CARE D Assigned
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of GARE are
constrained by its on-going delays in debt servicing. The firm
has small scale of operations, negative net worth base, elongated
operating cycle and partnership nature of constitution. Further,
there is limited experience of partners, susceptibility to
fluctuation in raw material prices and monsoon dependent
operations, and firm has presence in fragmented nature of
industry coupled with high level of government regulation.
Going forward, the ability of the firm to scale up its operations
while improving its overall solvency position and efficient
utilization of working capital borrowings would remain the key
rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: As per the discussion with the
banker, there are on-going delays in repayment of term loan
account. The delays are on account of weak liquidity position as
the firm is unable to generate funds on timely manner leading to
cash flow mismatches.
Limited experience of partners: GARE was established in 2014 as a
partnership firm and is currently being managed by Mr. Sumit
Singla, Mr. Rahul Garg and Mrs. Amandeep Kaur. The partners have
an industry experience of four years which they have gained
through GARE and other family run businesses. However, the
partners are supported by experienced staff members to run day to
day operations.
Small scale of operations: The scale of operations of the firm
remained small marked by total operating income of INR58.65 crore
in FY18 (Prov.). The small scale limits the financial flexibility
of the firm in times of stress and deprives it of the scale
benefits. Further, the firm witnessed a fluctuating trend in the
FY16-FY18 period as the TOI of the firm declined to INR58.65
crore in FY18 (Prov.) from INR60.91 crore in FY17 due to lower
quantity sold owing to lower orders received.
Negative net-worth base: As on March 31, 2018 (Prov.), the total
debt of the firm comprised of term loans (including vehicle
loans) of INR6.65 crore, unsecured loans of INR8.99 crore and
working capital borrowings of INR33.25 crore. The net worth of
the company stood at INR(-)20.38 crore as on March 31, 2018 as
the firm has been incurring losses in the past.
Elongated operating cycle: The operating cycle of the firm stood
elongated at 154 days for FY18 (PY: 177 days). Owing to the
seasonality of rice harvest, entities engaged in the rice
processing industry have to accumulate an adequate amount of raw
material inventory to ensure uninterrupted production throughout
the year. Furthermore, basmati rice requires longer ageing of the
semi-finished rice for better quality, which further elongates
the inventory holding period of the firm which resulted in
average inventory period of 282 days for FY18. (PY: 290 days).
Furthermore, the firm provides credit period of around 10-15 days
to its customers which led to average collection period of 8 days
for FY18 (PY: 5 days). GARE procures raw materials with average
payable period of around 3-4 months, however, delay in payment to
creditors resulted into average creditor period of 136 days for
FY18. The working capital limits remained fully utilized for the
last 12 months period ended June 2018.
Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature. The
price of rice moves in tandem with the prices of paddy.
Availability and prices of agro commodities are highly dependent
on the climatic conditions. Adverse climatic conditions can
affect their availability and leads to volatility in raw material
prices. Any sudden spurt in raw material prices may not be passed
on to customers completely owing to firm's presence in highly
competitive industry.
Partnership nature of constitution: GARE's constitution as a
partnership firm has the inherent risk of possibility of
withdrawal of the partners' capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision of the lenders. The partners withdrew funds amounting to
INR1.68 crore during FY16-FY18 period.
Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product makes
the industry highly fragmented with numerous players operating in
the unorganized sector with very less product differentiation.
There are several small scale operators which are not into endto-
end processing of rice from paddy, instead they merely complete a
small fraction of processing and dispose-off semiprocessed rice
to other big rice millers for further processing. Furthermore,
the concentration of rice millers around the paddy growing
regions makes the business intensely competitive. The raw
material (paddy) prices are regulated by government to safeguard
the interest of farmers, which in turn limits the bargaining
power of the rice millers.
Gagan Agro and Rice Exporters was established as a partnership
firm in 2014 and it is currently being managed by Mr. Sumit
Singla, Mr. Rahul Garg and Mrs. Amandeep Kaur sharing profits and
losses in the ratio of 3:3:4 respectively. The firm is engaged in
processing of paddy at its manufacturing facility located in
Sangrur, Punjab with an installed capacity of 32000 metric Tonnes
of paddy per annum as on June 30, 2018. It is also engaged in
trading of rice (income from trading constituted 20% of the total
income in FY18). GARE sells rice primarily to various rice
wholesalers through brokers, dealers and commission agents based
in Punjab, Haryana New Delhi and Uttar Pradesh.
GMR HYDERABAD: CARE Reaffirms D Rating on INR1552.92cr Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
GMR Hyderabad Vijayawada Expressways Private Limited (GHVEPL),
as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 1552.92 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation of rating assigned to the bank facilities of
GHVEPL takes into account the on-going delays in servicing of
debt obligations and persistent losses on account of lower than
envisaged toll revenues. Going forward, the company's ability to
service its debt obligations in a timely manner and register
improvement in the overall financial risk profile shall remain
the key rating sensitivities.
Detailed description of the key rating drivers
Delay in debt servicing by the company: The subdued financial
performance and stretched liquidity position of the company on
account of lower than envisaged toll revenues has led to the
continuing delays in the servicing of its debt obligations.
On-going arbitration process with NHAI: The company has been
incurring losses since the commencement of commercial operations
since FY2013. These losses are primarily due to loss of revenue
arising as a result of drop in commercial traffic due to
bifurcation of state of Andhra Pradesh and ban on sand mining in
the region. The company has claimed compensation from NHAI on
account of change in law to recover losses due to the same and
has also requested for deferral of revenue share (NHAI is
entitled to get 35% of total toll revenue collected as per
concession agreement). NHAI has not accepted the claims on
account of concerns regarding claim computation methodology and
also rejected the request for deferral of revenue share. After
failing to reach on any consensus, GVEPL initiated the
arbitration proceedings against NHAI and the matter is with the
Hon'ble tribunal for their consideration. Going forward, the
extent of favorable verdict of the Tribunal and receipt of the
claim shall be a key monitor able.
GMR Hyderabad Vijayawada Expressways Pvt. Ltd. (GHVEPL) is a
Special Purpose Vehicle (SPV) incorporated on June 11, 2009,
promoted by GMR Highways Limited (49% stake), GMR Infrastructure
Limited (41% stake, rated CARE BB; Stable/ CARE A4) and Punj
Lloyd Limited (10% stake, rated CARE D/ CARE D). GHVEPL was
formed for construction of four/six laning of 181.50 km of
Hyderabad Vijayawada section of NH-9 starting from km 40 to km
221.50 on Build Operate and Transfer (BOT) - Toll basis, awarded
through competitive bidding by National Highways Authority of
India (NHAI). The company received 'Provisional completion
certificate' from Independent Engineer on December 20, 2012, on
behalf of NHAI and commenced toll operations for four laning from
December 21, 2012.
GOPAL SHIVHARE: CARE Reaffirms D Rating on INR5cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Gopal Shivhare (GSH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5.00 CARE D Reaffirmed
Long-term/Short-
term Bank
Facilities 3.00 CARE D Reaffirmed
Detailed Rationale & Key rating Drivers
The rating assigned to the bank facilities of GSH is primarily
constrained on account of stressed liquidity position leading to
overdrawing in Cash Credit Account.
Detailed description of the key rating drivers
Key Rating Weakness
Stressed liquidity position leading to overdrawing in Cash Credit
Account: In February 2018, the firm took ad-hoc limit for
participating in tenders invited by Madhya Pradesh government for
liquor shops. UCO Bank sanctioned ad-hoc limit in February 2018.
The same was adjusted with a delay of 1-2 months over and above
stipulated time. The account is regular since July 10, 2018. The
firm has fully utilized its working capital bank borrowings
during the past 12 months ending August, 2018.
Established in 2006, M/s Gopal Shivhare (GSH) is a sole
proprietorship firm which is into the business of retailing of
alcohol. GSH is part of Shivhare liquor group based in Madhya
Pradesh (MP). GSH holds retail liquor supplier license in MP and
undertakes retail trade of Indian made foreign liquor (IMFL),
beer, country liquor (CL), wine etc. The firm enters into open
tendering process every year to avail license for the retailing
of the liquor. Depending upon the allotment of shops during
tendering, the number of shops held by the firm varies every
year. The shops are allotted in MP by the state government
through a competitive bidding process. Shivhare Liquor group has
other associate concern namely M/s Ram Swaroop Shivhare, M/s
Gopal Shivhare, M/s Laxmi Narayan Shivhare & M/s Kalpna Shivhare
all are engaged in similar business activity.
GREEN WOODCRAFTS: CRISIL Reaffirms B+ Rating on INR3cr Loan
-----------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank loan facilities of
Green Woodcrafts Private Limited (GWPL) at 'CRISIL B+/Stable
/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B+/Stable (Reaffirmed)
Letter of credit
& Bank Guarantee 11 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.82 CRISIL B+/Stable (Reaffirmed)
Term Loan 0.18 CRISIL B+/Stable (Reaffirmed)
The ratings reflect modest scale of operations in the intensely
competitive plywood industry and large working capital
requirement. These weaknesses are partially offset by extensive
experience of the promoters and an above-average financial risk
profile.
Analytical Approach
Unsecured loans from the promoters of INR2.90 crore as on
March 31, 2018, have been treated as neither debt nor equity, as
these loans are expected to remain in the business; though there
have been instances of minimal withdrawals in the past.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Operating income of INR31.83 crore
in fiscal 2018, reflects a modest scale, due to presence in the
highly competitive decorative plywood segment, however it is
expected to grow at a moderate rate over the medium term.
* Working capital intensive operations: The operations are highly
working capital intensive, as reflected in high gross current
assets of 364 days as on March 31 2018, primarily driven by high
debtor days (169 days) and large inventory requirement (193
days), though partially offset by credit from suppliers (210
days). With more than 300 varieties of plywood, the company needs
to maintain a large stock of inventory. GWPL needs to extend a
large credit period to remain competitive in the market, owing to
low bargaining power with its customers. Bank limit utilization
is high, averaging 96% over the 12 months through April 2018, to
fund the large working capital requirement.
Strengths:
* Experience of promoters: Benefits from promoters' experience
(around two decades), healthy relationships with customers and
suppliers and moderate visibility of the Flamingo brand, should
continue to support the business risk profile.
* Above-average financial risk profile: Networth and total
outside liabilities to tangible networth (TOLTNW) were moderate
at INR10.74 crore and 1.61 time, respectively, as on March 31,
2018. Adjusted interest coverage and net cash accrual to total
debt ratios were also adequate at 2.34 times and 0.2 times,
respectively, in fiscal 2018. The ratios are expected to remain
stable over the medium term.
Outlook: Stable
CRISIL believes GWPL will continue to benefit from the promoters'
experience. The outlook may be revised to 'Positive' if revenue
and profitability increase substantially with steady capital
structure. The outlook may be revised to 'Negative' if decline in
revenue and profitability or a stretched working capital cycle,
weaken the financial risk profile, especially liquidity.
GWPL was established in 1996 by Mr Narendra Khetawat and his
family. The company manufactures plywood and veneer under the
brands, Flamingo and Saffron, in its facility at Rohtak, Haryana.
GVNS TOLLWAY: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded GVNS Tollway
Private Ltd.'s bank loan rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND BB (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise, despite continuous
requests and follow-ups by the agency. Thus, the rating is based
on the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings.
The detailed instrument-wise rating action is:
-- INR360 mil. Senior project bank loans downgraded with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information.
KEY RATING DRIVERS
The rating action reflects delays in debt servicing by GVNS
Tollway, details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
lead to a positive rating action.
COMPANY PROFILE
GVNS Tollway is a special purpose vehicle; it secured a 15-year
concession from the government of Andhra Pradesh to design,
finance, build, operate and transfer a two-lane, 600m bridge on
the Miryalaguda-Kodada Andhra Pradesh state highway in February
2009.
HARROW EDUCATIONAL: CARE Migrates D Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Harrow
Educational Society (HES) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.39 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HES, to monitor the
rating(s) vide e-mail communications/letters dated August 14,
2018, August 3, 2018, etc and numerous phone calls. However,
despite CARE's repeated requests, the society has not provided
the requisite information for monitoring the ratings. In-line
with the SEBI guidelines, CARE has reviewed the rating on the
basis of publicly available information which however, In CARE's
opinion is not sufficient to arrive at fair rating. The rating on
Harrow Educational Society'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 of the society continue to remain constrained owing to
ongoing delays in debt servicing, small scale of operations, net
losses and weak debt coverage indicators. The rating is further
constrained by elongated collection period, low enrolment ratio
and highly regulated educational sector in India. The rating
however, continues to derive strength from experienced and
qualified members of the society.
Key rating weakness
Ongoing delay in debt servicing due to stress liquidity position:
There have been delays in relation to the debt servicing of
principal installment and interest of term loan on account of
liquidity stress due to cash flow miss match arising out of
elongated collection period.
Small and declining scale of operations: The scale of operations
of the society marked by total operating income stood small at
INR11.02 for FY16 (refers to the period April 1 to March 31).
Further, the society has achieved total operating income (TOI) of
INR11.00 crore in FY17 (based on provisional results). The small
scale limits the society's financial flexibility in times of
stress and deprives it from scale benefits.
Net losses coupled with weak coverage indicators: The SBID margin
of the society declined on y-o-y basis due to increase in
operational overheads and employee costs coupled with lower
revenue. Further, on account of higher depreciation and financial
cost coupled with low SBID, the society reported net loss for the
past three financial years i.e. FY14-FY16.
Low enrolment ratio: The average enrollment ratio stood low at
43% owing to high competition prevailing in the education sector.
HES has a total strength of 2110 students in college in the
academic session (AS) 2016-17 and Harrow School has a total
strength of 324 students for the academic session 2016-17.
Elongated collection cycle: The average collection period remains
elongated at around two months as the society receives fee from
Samaj Kalyan Vibhag for economic weaker section for the students.
This strains the liquidity position of the society.
Highly regulated educational sector in India: In addition to
AICTE, the educational institutes are regulated by respective
State Governments with respect to the number of management seats,
amount of the tuition fees charged for the Government quota and
management quota. The factors have a significant impact on the
revenue and surplus of the society.
Key Rating strength
Experienced and qualified members of the society: Er. Navin
Prasad Mathur is the current president of the society and has
more than three decades of experience in running education
institution through his association with HES. Mrs. Veena Mathur
(Secretary) is LLB by education and has an experience more than
three decade in association with this society.
Uttar Pradesh based Harrow Educational Society (HES) was
established in 1981 with an objective to provide education
services. The society is managed by Er. Navin Prasad Mathur
(President), Mrs. Veena Mathur (Secretary) and Mr Vinesh
Pal Singh (Treasurer). HES provides undergraduate and post-
graduate courses in various fields of Engineering, Computers
Science, Management and Pharma.
HEMALI INVESTMENT: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Hemali
Investment & Finance Private Limited's (HIFPL) Long-Term Issuer
Rating to 'IND BB+' from 'IND BBB-'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR650 mil. Term loan due on March 2022 downgraded with
IND BB+/Stable rating.
KEY RATING DRIVERS
The downgrade reflects a lower sales realization by HIFPL than
Ind-Ra's expectation due to a fall in per square feet price,
which led to cash flow mismatches as customer advance is a major
source of funding.
HIFPL is undertaking its first redevelopment project (a
residential project, Casa Emerald) that involves a total cost of
INR1,547.9 million (excluding interest on debts), which is being
funded by a debt of INR650 million, a promotor contribution of
INR220 million and a customer advance of INR677.9 million. The
project is scheduled to be completed by December 2021. Casa
Emerald is a 40-storey, 85-flat project with a saleable area
116,273 square feet.
The ratings continue to reflect a high funding risk, as customer
advance is the major source of funding. As of June 2018, 35 of
the total 85 flats had been booked.
The ratings factor in a modest execution risk. By FYE18, HIFPL
had completed about 50% of the overall project construction
(including the rehab building) and had incurred INR588 million of
the overall cost.
The ratings, however, continue to be supported by a long
moratorium period of 24 months, indicating a low debt servicing
risk. HIFPL has taken an INR650 million term loan, the principal
repayment of which will start from FY20. Also, an INR12.8 million
debt service reserve account has been created that is equivalent
to two months of interest service obligations.
The ratings also continue to be supported by the promoters'
experience of over 14 years in executing real estate projects in
Mumbai. They have so far completed four projects, which have a
total saleable area of around 110,000 square feet.
The ratings benefit from the strategic location of the project,
given all basic amenities, including the Byculla railway station
and the international airport, are in proximity.
RATING SENSITIVITIES
Negative: Lower-than-expected sales volume, lower realization
from bookings, or significant time or cost overruns could result
in a negative rating action.
Positive: Successful project completion, sale of flats as planned
and a significant increase in sales realization, leading to a
strong cash flow visibility, could lead to a positive rating
action.
COMPANY PROFILE
Incorporated in 1981, HIFPL executes commercial and residential
real estate projects.
HILLSFOOD AGRO: CARE Lowers Rating on INR8.96cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hillsfood Agro Beverages Private Limited (SIE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.96 CARE D Rating revised from
Facilities CARE B+; Stable
Short term Bank 0.30 CARE D Rating revised from
Facilities CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of SIE
takes into consideration ongoing delays in debt servicing by the
company due to its stretched liquidity position. The company has
small scale of operations along with net loss, leveraged capital
structure, weak debt coverage indicators, working capital
intensive nature of operations and presence in highly fragmented
and competitive nature of industry. Further, there is
susceptibility of margins to fluctuation in raw material prices.
The rating, however, takes account of experienced promoters and
positive outlook for industry.
Going forward, the ability of HAB to increase its scale of
operations while achieving profitability and improving its
overall solvency position will be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: As per the discussion with the
banker, there are ongoing delays in the repayment of principal
and interest amount of term loan. The same are settled in 60
days. Furthermore, there are few instances of over utilization of
cash credit limit which is settled within 40 days. The delays are
on account of weak liquidity as the company is unable to generate
sufficient funds on timely manner leading to cash flow
mismatches.
Small scale of operations along with net loss: The total
operating income of HAB decreased from INR28.33 crore in FY17
(refers to the period April 1 to March 31) to INR20.29 crore in
FY18 on account of lesser quantity sold owing to lesser orders
received from the existing clients. The small scale limits the
company's financial flexibility in times of stress and deprives
it from scale benefits. Additionally, the company has reported
total operating income of INR14.00 crore in 5MFY19 (Provisional).
The PBILDT margin of HAB stood moderate at 8.35% in FY18.
However, the company incurred net loss of INR 0.26 crore in FY18
(compared to net loss of INR0.23 crore in FY17). The gross cash
accruals of the company stood at INR0.47 crore in FY18 as
compared to INR0.81 crore in FY17.
Leveraged capital structure: The capital structure of the company
continues to be leveraged with overall gearing ratio of 3.82x as
on March 31, 2018 mainly on account of company's high reliance on
bank borrowings to fund various business requirements. The same
deteriorated from 3.14x as on March 31, 2017 mainly on account of
higher utilization of working capital limits as on last balance
sheet date coupled with decline in the net worth base due to
continued losses.
Weak Debt coverage indicators: The debt coverage indicators
continued to remain weak characterized by interest coverage ratio
of 1.46x in FY18 and total debt to GCA of 22.60x for FY18.
Working capital intensive nature of operations: The company's
operations are working capital intensive. HAB is required to
maintain adequate inventory of raw material for smooth production
process as well as maintain inventory of finished goods to meet
demand of its customers which resulted in average inventory
period of 124 days for FY18. Furthermore, the company offers a
credit period of around one month to its customers, however,
delay in realization from customers resulted in average
collection period of 69 days for FY18 (PY: 31 days). The same
resulted in elongated creditor period of 172 days for FY18 which
increased from 95 days for FY17.
Susceptibility of margins to fluctuation in raw material prices:
The major raw material for HAB consists of sugar and fruit pulp.
The prices of pulp are highly fluctuating because of its seasonal
availability and other factors like irregularity of climatic
conditions to unpredictable yields. Any sudden spurt in raw
material prices might not be passed on to the end customers,
instantly, on account of highly competitive nature of the
industry.
Competitive nature of the industry: The food processing industry
is highly fragmented in India which makes this industry highly
competitive. Apart from the organized players, the company faces
challenge from various smaller players in the market and also
from the fresh juice makers. Thus, the company has limited
flexibility over pricing its products which is expected to
restrict the profitability margins, going forward.
Key Rating Strengths
Experienced management team: HAB is a private limited company
being managed by Mr Pradeep Kumar Gupta and Mr Anuj Kumar Jindal.
The directors have more than two decades of industry experience.
Mr Anuj Kumar Jindal (Civil Engineer by profession) looks after
the overall operations of the company. Mr Pradeep Kumar Gupta had
prior experience in the trading industry through his association
with a departmental store. The promoters have adequate acumen
about various aspects of business which is likely to benefit the
company in the long run.
Positive outlook for the juice industry: As per ASSOCHAM report,
the Indian juice industry is expected to grow at the rate of
about 35% annually. Consumers are becoming more health conscious
and with increase in disposable income, the demand for such
products is expected to increase. This is expected to help
companies like HAB to increase its scale of operations in the
short to medium term.
Hillsfood Agro Beverages Private Limited (HAB) was incorporated
in August, 2013 and is currently being managed by Mr Pradeep
Kumar Gupta and Mr Anuj Kumar Jindal. HAB has set up a fruit
juice processing unit at Baddi, Himachal Pradesh with an
installed capacity of about 13,500 Kilo litres of juice per annum
as on March 31, 2017. The company started commercial operations
in April-2015. The company sells its products viz mango juice,
apple juice, mixed juice etc under the brand name 'Juicewala' to
various wholesalers and retailers located in different states of
India through its network of super stockiest (15).
IL&FS FINANCIAL: CARE Cuts Rating on INR4,800cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
IL&FS Financial Services Ltd (IFIN), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 4,800 CARE D Revised from CARE BB;
Debentures and removed from credit watch
with negative implications
Non-convertible 250 CARE D (RPS) Revised from
Redeemable CARE BB- (RPS) and removed
Cumulative credit watch with negative
Preference Shares implications
Subordinate Debt 1,100 CARE D Revised from CARE BB;
and removed from credit watch
with negative implications
Long-term Bank 2,425 CARE D Revised from CARE BB;
Facilities and removed from credit watch
with negative implications
Commercial Paper 4,000 CARE D Revised from CARE A4
issue and removed from credit
watch with negative
implications
Perpetual Debt 200 CARE D Revised from CARE BB;
and removed from credit watch
with negative implications
Detailed Rationale & Key Rating Drivers
The rating revision takes into account the recent instances of
irregularities in servicing of debt by the company. The liquidity
profile of the group continues to be under stress on account of
delay in raising funds from the promoters' and impending debt
payments. Further, the company's plans to raise funds from
promoters are yet to be finalized.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in servicing of debt obligations: The issuing and paying
agent (IPA) for the Commercial Paper (CP) of IL&FS Financial
Services (IFIN) had informed CARE on September 15, 2018 about
delay by IFIN in meeting the repayments of its CP issuances. IFIN
had redemptions of INR105 crore to be paid on September 14, 2018
which were paid partly to the investors (amounting INR80 crore)
on account of insufficient funds in the CP redemption account.
The balance amount was received by the IPA post the NEFT cut-off
time and simultaneously paid to the beneficiary account on the
next day. Earlier, IFIN had witnessed a delay in CP redemptions
on August 28, 2018 and August 30, 2018 on account of technical
issue post which the company was barred from accessing CP markets
till February 28, 2019 in compliance with the RBI Commercial
Paper directions, 2017.
Deterioration in financial risk profile of the parent company:
The overall financial risk profile of the parent company -
Infrastructure Leasing and Financial Services Limited (IL&FS) has
seen weakening on account of group's elevated leverage levels and
moderation in credit profile of key business verticals i.e.
energy vertical (housed in IL&FS Energy Development Company
Limited) and engineering vertical (housed in IL&FS Engineering
and Construction Company Limited). CARE had earlier downgraded
the ratings of IEDCL to 'CARE BB-; Credit watch with negative
implications) and IECCL to 'CARE BB; Negative'.
Deterioration in asset quality: IFIN has been witnessing asset
quality pressures for the last couple of years in sync with the
stressed environment prevailing in the economy, especially in the
infrastructure sector. During FY18, IFIN's asset quality
parameters saw deterioration on account of slippages in certain
accounts as well as shift of NPA recognition from 120 days past
due (dpd) to 90 dpd norm. IFIN reported Gross NPA Ratio
(calculated on credit exposures) of 5.30% (P.Y.: 3.30%) and Net
NPA Ratio of 3.49% (P.Y.: 2.36%) as on March 31, 2018. The
company's Net NPA to Net worth ratio stood at 27.50% (P.Y.:
14.84%) as on March 31, 2018. In addition to provisioning for
NPAs, IFIN has been conservatively creating contingency
provisions which stood at INR275 crore as on March 31, 2018
(P.Y.: INR450 crore) which (covers ~52% of Net NPAs) providing
some comfort.
Deterioration in liquidity profile: The liquidity profile of the
company has seen significant deterioration on account of
impending debt servicing obligations in the near future and delay
in funding support from the group on account of delay in fund
raising plans. The financial flexibility of the company is
further impacted as IFIN would not be able to access the
Commercial Paper (CP) market for six month period in line with
compliance with the Reserve Bank Commercial Paper Directions,
2017.
Subdued financial performance: IFIN witnessed a marginal decline
in total income during FY18 (refers to period from April 01 to
March 31) which was largely on account of stagnant growth in
interest income on loan portfolio with Net Interest Income
increasing by only 9% during the year as compared to 32% in the
previous year. The NIM expanded by 38 bps to 2.61% during FY18.
IFIN saw rise in provisioning during FY18 (especially in Q4FY18)
on account of higher provisions required on NPA (Rs.176 crore),
provision for diminution in investments (Rs.197 crore) and
additional provision for standard assets (Rs.121 crore) resulting
in PBT reported sharp de-growth during the year to INR202 crore
as against PBT of INR323 crore during FY17. The company reported
Profit after Tax (PAT) of INR100 crore during FY18 as against PAT
of INR209 crore during FY17 showing a sharp decline of 52.27%.
IFIN's Return on Total Assets (ROTA) declined significantly by 63
bps to 0.49% during the same period on account of a 52.27%
decline in PAT in FY18 caused due to higher credit cost. Customer
concentration risk: IFIN's funding is towards corporate loans and
infrastructure loans which leads to higher concentration risk. As
on March 31, 2018, top 10 individual borrowers constituted around
20% of the total credit exposure [March 31, 2017: 22%] and 161%
of the tangible net-worth [March 31, 2017: 140%]. In the Promoter
Funding (PF) portfolio, top 10 exposures accounted for 85% of PF
book as on March 31, 2018 [March 31, 2017: 66%] and 91% of the
tangible net-worth [March 31, 2017: 86%]. On Infrastructure loan
side, top 10 exposures accounted for 45% of the total
infrastructure loan portfolio as on March 31, 2018 [March 31,
2017: 47%] and 148% of the tangible net-worth as on March 31,
2018 [March 31, 2017: 116%]. On real estate loan side, top 5
exposures accounted for 44% of the total real estate portfolio
and 57% of the tangible net-worth as on March 31, 2018. On
corporate loan side, top 5 exposures accounted 36% of the total
corporate loan portfolio and 75% of the tangible net-worth. As on
March 31, 2018, Top 10 group exposures constituted around 26% of
the total credit exposure [March 31, 2017: 28%] and 208% of the
tangible net-worth [March 31, 2017: 181%].
Compliance with regulatory norms within stipulated timelines:
While reporting CAR, IFIN followed its own policy in respect of
the definition of 'companies in the same group', as approved by
its Board of Directors since October, 2007. IFIN treated each
business verticals as separate group exposures for complying with
the regulatory guidelines on prudential norms. RBI, under the
NBFC regulations, undertakes regular annual Inspection of the
registered NBFC's. RBI in its recent inspection reports has asked
IFIN to report CAR as required by the definition considered by
RBI and has given time till March 31, 2019 to comply with the NOF
and CAR requirements as per RBI definition. Considering IFIN's
exposure to group companies being significantly higher than its
tangible net worth, IFIN would be required to either infuse
significant amount of equity capital or significantly reduce its
exposure to group companies.
ILFS group has initiated strategic measures to de-leverage the
books of IFIN by raising equity capital as well as reducing the
debt and reducing its exposure to group companies to comply with
the regulatory norms. As a part of the plan, the company has
taken shareholder's approval to increase its authorized capital
to INR 2,750 crore from INR1,050 crore by way of increase in
equity capital and by creation of additional Compulsorily
Convertible Cumulative Preference Shares (CCCPS) and approval to
raise INR 500 crore through issue of CCCPS on private placement
basis. However, timely infusion of capital (equity/preference)
and exiting of exposures would be critical for IFIN in complying
with the RBI stipulations by end of FY19.
Incorporated in September 1995, IL&FS Financial Services Ltd is
registered as systemically Important Non Deposit taking Non-
Banking Financial Company (NBFC-ND-SI). IFIN is a 100% subsidiary
of IL&FS Ltd (rated 'CARE BB; / CARE A4 credit watch with
negative implications). IFIN's business profile is broadly
divided into investment banking business (asset & structured
finance), project debt syndication business, corporate advisory
services business and project finance advisory. IFIN has
international presence through its fully owned subsidiaries in
Singapore, United Kingdom, Hong Kong and Dubai. These
subsidiaries were set up mainly to assist corporates for their
overseas borrowing, through private equity, syndication and
advisory services.
INDEXONE INFRACON: Ind-Ra Maintains BB+ Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Indexone
Infracon & Logistics Pvt Ltd.'s Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR200 mil. Non-fund-based limits maintained in Non-
Cooperating Category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 11, 2015. 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, Indexone Infracon & Logistics started
commercial operations in 2012. The company imports edible oils
from Malaysia, Argentina and Indonesia and sells its products to
wholesalers. It is managed by Mr. Navin Chordia and his family,
and has a registered office in Mumbai.
INFRASTRUCTURE LEASING: CARE Cuts INR9,641.94cr Loan Rating to D
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Infrastructure Leasing & Financial Services Limited (IL&FS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 9,641.94 CARE D Revised from CARE BB;
Debentures and removed from credit watch
with negative implications
Subordinate Debt 6.85 CARE D Revised from CARE BB;
and removed from credit watch
with negative implications
Redeemable 1,500.00 CARE D (RPS) Revised from
Preference CARE BB- (RPS) and removed
Shares credit watch with negative
implications
Long-term Bank 400.00 CARE D Revised from CARE BB;
Facilities and removed from credit watch
with negative implications
Non-fund Based 200.00 CARE D Revised from CARE BB/
Bank Facilities CARE A4; and removed from
credit watch with negative
implications
Commercial Paper 2,500.00 CARE D Revised from CARE A4
issue and removed from credit
watch with negative
implications
Detailed Rationale & Key Rating Drivers
The rating revision takes into account the recent instances of
irregularities in servicing of debt by the company. The liquidity
profile of the group continues to be under stress on account of
delay in raising funds from the promoters' and impending debt
payments. Further, the company's plans to raise funds from
promoters are yet to be finalized.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in servicing of debt obligations: IL&FS has made a
disclosure on September 15, 2018 to the stock exchange that
the commercial papers (CP) which were due on September 14, 2018
could not be serviced by the company. In addition, the company
has received notices for delay and defaults in servicing some of
the Inter Corporate Deposits (ICDs) accepted by it.
Delay in fund raising and asset monetization severely impacting
the liquidity profile: As a part of the deleveraging plan, IL&FS
group had envisaged monetization of certain identified assets to
reduce debt levels, infusion of equity capital (Rs.4,500 crore)
by H1FY19 to decrease leverage as well as have a funding line
from promoter entities as a liquidity measure. However, the
deleveraging has taken longer than expected time, while
uncertainty about the timely infusion of funds vis-Ö-vis
impending debt payment obligations in the near term has severely
impacted the liquidity profile of the company.
Moderation in financial flexibility on account of increase in
debt levels and longer time frame taken in offloading
investments: IL&FS has a demonstrated track record of generating
resources by inducting strategic partners or through sale of
assets to external investors. During FY11 to FY14, IL&FS realized
profit of around INR1,461 crore on sale of stake in strategic
investments. IL&FS sold the stake in group power generating
company to its energy vertical subsidiary to consolidate its
energy holdings at fair market value, which yielded aggregate
profits of INR361 crore in FY15 and FY16. IL&FS has also sold
stake in IL&FS Trust Company Ltd wherein it realized a profit of
INR113 crore in FY16 and INR37 crore in FY17 respectively. IL&FS
also up streamed dividend of INR223 crore from its energy
vertical on account of divestment of 49% stake in the
commissioned wind power projects aggregating 775.2 MW.
However, these stake sales have been inadequate to meet the
further funding commitments to the group companies leading to an
increase in the gearing levels over a period of time. With
relatively high leverage, it would largely have to depend on
strategic sale in various projects/group companies to support
various group entities going forward. In addition to the funding
support, IL&FS has been extending additional support to the group
entities by way of shortfall undertakings which could lead to
contingent stress on the balance sheet.
Weakening in financial risk profile of the group with moderation
in credit risk profile of key verticals: The financial risk
profile of the group has further weakened with moderation in
credit risk profile of energy vertical (housed in IL&FS Energy
Development Company Limited) and engineering vertical (housed in
IL&FS Engineering and Construction Company Limited). CARE had
earlier downgraded the ratings of IEDCL to 'CARE BB-; Credit
watch with negative implications) and IECCL to 'CARE BB;
Negative'.
Dependence on induction of strategic partner/sale of investments:
IL&FS has initiated various infrastructure projects in power,
road, SEZ and ports segment which involve large capital outlays
resulting in increase in leverage ratio overtime. Furthermore,
IL&FS has been supporting all its verticals due to lower than
expected divestment/sale of assets in those verticals. To further
support the funding requirements, IL&FS had identified certain
assets for stake sale/exits which are capital intensive having
long gestation period for which the process of asset monetization
/ divestment has been slow. Going forward the induction of
strategic partners/ sale of investments in a timely manner would
be critical for IL&FS to manage its leverage levels within
regulatory limits and also to support its group companies.
Support to group companies leading to high concentration in the
asset book: The asset profile of IL&FS mainly constitutes
investments (equity plus convertible instruments) and loans given
to group entities. As on March 31, 2018, the top five exposures
of IL&FS i.e. IL&FS Energy Development Company Ltd. (IEDCL),
IL&FS Transportation Networks Ltd. (ITNL), IL&FS Engineering and
Construction Company Ltd. (IECCL), IL&FS Maritime Infrastructure
Company Ltd. (IMIC) and IL&FS Financial Services Ltd. (IFIN)
accounted for around 71% of lending and investment book, as
compared to 65% of lending and investment book as on March 31,
2017. As the sale of core assets over a period of the time has
remained stagnant, IL&FS has been opportunistic in divesting some
of its non-core assets to upstream the cash flows and further
support the funding requirements of group companies which have
been limited to an extent.
Over and above the support provided by IL&FS, IL&FS Financial
Services Limited (IFIN) which is a wholly owned subsidiary of
IL&FS also had exposure to certain IL&FS group entities that have
increased over a period of time. The Reserve Bank of India (RBI)
has directed IFIN to reduce its exposure to group companies and
comply with regulatory norms by March 31, 2019. IFIN has
furnished a plan for reduction in its exposure to IL&FS group
entities. Pursuant to the foregoing, IFIN has also taken steps to
increase its equity capital. However, timely infusion of capital
(equity / preference) and reduction in group exposure would
remain critical for IFIN.
Subdued financial risk profile: IL&FS, being a Core Investment
Company (CIC) has steady income arising from interest, dividend,
brand fee and income from business centre. Additionally, IL&FS
has significant income arising out of divestment of its group
entities which is relatively volatile. During FY18, IL&FS
reported moderate growth of 6% y-o-y in its total income to
INR1,899 crore, the operating profitability i.e. profit before
tax (PBT) declined by 7% y-o-y on account of 32% decline in its
investment income (includes dividend income, interest income and
profit on sale of investments). However, the profit after tax
(PAT) increased by 53% y-o-y on account write-back of excess
income tax provision (Rs.361 crore) to INR584 crore. On a
consolidated basis, the company reported net loss of INR1,887
crore on total income of INR18,799 crore during FY18 as compared
to PAT of INR142 crore on total income of INR17,157 crore during
FY17.
Capitalization and increase in gearing levels: Although, IL&FS
has been reporting the regulatory leverage ratio within the
regulatory cap (the outside debt to adjusted net worth ratio is
capped at 2.5 times for Core Investment Company (CIC) as per RBI
guidelines), the standalone leverage has seen significant
increase over the last three years due to increase in debt levels
to support the funding requirement of group entities. As on March
31, 2018, IL&FS reported capital adequacy ratio (as per
regulatory CIC requirements) of 32.66% (P.Y.: 33.50%) and gearing
of 3.612 times as on March 31, 2018 (leverage ratio as per
regulatory requirements: 2.30 times) as against gearing of 3.162
times as on March 31, 2017 (leverage ratio as 2 Gearing is
calculated as total borrowings (including preference share
capital and premium) / tangible net-worth (equity share capital &
reserves and surplus net of revaluation reserves and intangible
assets) per regulatory requirements: 2.23 times). Further, IL&FS
has also planned to raise equity capital of INR4,500 crore,
through rights issue during H1FY19 which remains a key rating
sensitivity.
Key Rating Strengths
Strong institutional ownership: IL&FS has strong institutional
ownership with domestic institutional investors like Life
Insurance Corporation of India (LIC) [25.34%], HDFC Ltd. [9.02%],
Central Bank of India (CBI) [7.67%] and State Bank of India (SBI)
[6.42%] together held around 49% shareholding in IL&FS while
foreign institutional investors viz. ORIX Corporation, Japan
[23.54%] and Abu Dhabi Investment Authority, Abu Dhabi [12.56%]
held around 36% in the company as on June 30, 2018. As a part of
the plan for de-leveraging the balance sheet and monetization of
portfolio, the company has plans to raise equity capital of
INR4,500 crore by way of Rights Issue in H1FY19 (refers to period
from April 01 to September 30). In addition, the company has
plans to avail lines of credit of INR3,500 crore from promoter
entities for meeting any temporary liquidity requirement. Mr.
Hemant Bhargava, Non-Executive Chairman of the Company has
stepped down from the Board with effect from September 15, 2018.
The Board has unanimously appointed Mr Sunil Behari Mathur,
Independent Director and former Chairman of Life Insurance
Corporation of India as Non-Executive Chairman of the Company
with effect from September 15, 2018.
Analytical approach: CARE has analyzed standalone credit profile
of IL&FS. Further, CARE has also assessed the operational,
managerial and financial support that IL&FS provides to its
subsidiaries/group companies as a CIC.
IL&FS is one of India's leading infrastructure development and
finance companies promoted by the Central Bank of India (CBI),
Housing Development Finance Corporation (HDFC) and Unit Trust of
India (UTI). IL&FS was established with twin mandates of
providing financial services and to develop infrastructure
projects under a commercial format. The shareholding pattern of
the company has undergone a considerable change over the years
with wider participation of other domestic as well as foreign
institutional investors. IL&FS received certificate of
registration as Core Investment Company (CIC-ND-SI) from RBI
dated September 11, 2012. IL&FS's income profile constitutes
interest income from loans given to subsidiaries/group companies,
dividend received from subsidiaries (mainly IFIN, IEDCL, ITNL,
ISSL and IL&FS Investment Managers Ltd.), brand fees received
from group companies, rental income from business centre and
profit from divestment of its exposure in group entities.
INTEGRATED INDUCTION: CARE Assigns B+ Rating to INR7cr LT Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Integrated Induction Power Limited (IIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.00 CARE B+; Stable Assigned
Facilities
Long-term/Short- 5.00 CARE B+; Stable/CARE A4
Term Bank Assigned
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of IIPL continue to
remain constrained on account of fluctuating scale of operations
along moderate profit margins, moderate order book position,
moderate liquidity position and project implementation and
stabilization risk in FY18 (Audited, FY: refers to the period of
April 1 to March 31). Furthermore, ratings are constrained on
susceptibility of profit margins to volatility in raw material
price and foreign exchange fluctuation risk.
The ratings, however, derives strength comfortable capital
structure, comfortable debt coverage indicators along with
experience of promoter and reputed customers and suppliers.
The ability of IIPL to increase its scale of operations coupled
with improvement in profitability, capital structure and debt
coverage indicators along with efficient management of its
working capital requirements are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Fluctuating scale of operations albeit moderate profitability
The scale of operation of IIPL stood moderate marked by total
operating (TOI) of INR51.84 crore during FY18 which decline
significantly by 73% as against INR193.15 crore during FY17.
During FY18, exports contributed 81% of TOI as against 97% of TOI
in FY17.
The profitability of the company stood moderate marked by PBILDT
margin of 3.02% during FY18 as against 4.30% in FY17 mainly on
account of increase in manufacturing expenses. During FY18, PAT
margin also declined and stood at 1.66% as against 2.68% in FY17
mainly on account of decline PBILDT level.
Moderate order book position: IIPL has a moderate order book
amounting to INR49.08 crore which are expected to get dispatched
by January 2019 to Bisotoun Steel Company (Iran) and Hydrolics.
Project implementation and stabilization risk: IIPL is on-going a
project for expansion of unit to manufacture more products and
move towards manufacturing segment than trading of goods.
Envisaged project cost is INR8.00 crore which will be financed
through a proposed term loan of INR7 crore and INR0.50 crore
through unsecured loans and INR0.50 crore through internal
accruals. Financial closure of project is not achieved till date.
Moderate liquidity position: The liquidity position of the
company stood moderate marked by current ratio of 1.06 times as
on March 31, 2018 as against 1.05 times as on March 31, 2017
owing to high debtors level as on balance sheet date. The
operating cycle of IIPL stood elongated at 96 days during FY18 as
against 26 days during FY17 mainly on account of higher
collection period.
Susceptibility of profit margins to volatility in raw material
price and foreign exchange fluctuations: The major raw materials
for manufacturing castings and furnus are Steel scrap and Ferro
alloys, the prices of which have shown fluctuations during the
past few years due to volatility in the global commodity markets.
The company exports the castings mainly to Iran while import
portion is negligible, making it a net exporter. The company does
not engage in any active hedging policy which exposes its profit
margins to fluctuations in foreign exchange rates.
Key Rating Strengths
Experienced promoters
IIPL was promoted in 2012 by Mr. Harish Mukati, Mr.
Jayachandrababu Sadanandan and Mr. Sunil Kulkarni. Mr. Sunil
Kulkarni holds an experience of more than three decades in same
line of business.
Mr. Jayachandrababu Sadanandan holds an experience of more than
three decades through his association with Inductotherm (India)
Limited (CARE AA+; Stable/CARE A1+) and Electrotherm (I) Limited.
Mr. Harish Mukati holds an experience of more than two decades in
engineering and iron & steel industry.
Reputed customers and suppliers: IIPL has association with
reputed customers namely AIA Engineering Ltd, Bisotoun Steel Co.
(Iran). IIPL procures its major raw material from reputed
companies like Electrotherm (India) Ltd (Solar rating- SP 2C)
etc.
Comfortable capital structure and debt coverage indicators:
Capital structure of the IIPL stood comfortable marked by an
overall gearing ratio of 0.05 times as on March 31, 2018 (Prov.)
as against 0.01 times as on March 31, 2017 due to low debt level
and higher tangible net worth base. Debt coverage indicators also
stood comfortable as marked by total debt to GCA ratio of 0.39
times as on March 31, 2018 as against 0.01 times as on March 31,
2017 mainly on account of lower debt level. Interest coverage
ratio deteriorated but stood comfortable at 6.35 times during
FY18 as against 57.53 times during FY17 on account of significant
decline in PBIDLT level.
Integrated Induction Power Limited (IIPL) was established in
September 2012 as a closely held public limited company and
promoted by Mr. Harish Mukati, Mr. Jayachandrababu Sadanandan and
Mr. Sunil Kulkarni. IIPL is engaged in the trading and
manufacturing of engineering goods like power pack, hydrolic
cylinders, casters, furnus etc. The company's plant is located at
Vatva (Ahmedabad) which is an industrial hub. The products
manufactured by the company find application in engineering
industry.
JEEVANDEEP PRAKASHAN: Ind-Ra Keeps BB Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Jeevandeep
Prakashan Pvt. Ltd.'s Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based cash credit limits maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR80 mil. Fund-based standby line of credit limits
maintained in non-cooperating category with IND BB (ISSUER
NOT COOPERATING) rating;
-- INR70 mil. Fund-based overdraft against property limits
maintained in non-cooperating category with IND BB (ISSUER
NOT COOPERATING) rating; and
-- INR43.8 mil. Term loan Maintained in non-cooperating category
IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last assigned on
February 24, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2002, Jeevandeep Prakashan is among the leading
book publishers in the field of education.
K.R.R. ENGINEERING: CRISIL Ups Rating on INR3.00cr Loan to B-
-------------------------------------------------------------
CRISIL has upgraded its ratings on the long term bank facilities
of K.R.R. Engineering Private Limited (KRR) to 'CRISIL B-
/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4.96 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 2.25 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Export Packing 3.00 CRISIL B-/Stable (Upgraded
Credit from 'CRISIL D')
Letter of Credit 2.50 CRISIL A4 (Upgraded from
'CRISIL D')
The rating upgrade reflects the sufficient track record of timely
servicing the debt obligation. The liquidity profile is stretched
with past delays in repayment due to stretch in receivables and
large working capital requirements.
The rating continues to reflects a modest scale and working-
capital-intensive operations. These weaknesses are partially
offset by the extensive experience of the promoter in the
engineering capital goods industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations in the highly fragmented industry:
Despite being operational for over 40 years, KRR's scale remains
modest, as reflected in topline of INR20 crore in fiscal 2018,
due to fluctuating demand and intense competition.
* Working-capital-intensive operations: Operations are working
capital intensive, as reflected in gross current assets of 345
days, driven by receivables and inventory of 150 and 160 days,
respectively, as on March 31, 2018.
Strengths
* Promoter's extensive experience: The promoter's experience of
around four decades in the engineering capital goods industry has
helped develop an understanding of the dynamics of the local
market and establish relationships with customers.
Outlook: Stable
CRISIL believes KRR will continue to benefit over the medium term
from the promoters' extensive experience. The outlook may be
revised to 'Positive' in case of significant scaling up of
operations, leading to substantially higher cash accrual, while
maintaining capital structure. The outlook may be revised to
'Negative' in case of low revenue or profitability, a highly
stretched working capital cycle, or large, debt-funded capex,
weakening the financial risk profile.
Based in Chennai, KRR was established as a proprietorship in 1976
and reconstituted as a private limited company in 1986. It
undertakes heavy fabrication and machining for a wide range of
process industries. Mr Sakthivel Ramaswamy manages the day-to-day
operations.
KALPATARU COLD: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kalpataru Cold
Storage Private Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR41.8 mil. Term loans (long-term) maintained in Non-
Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR78.8 mil. Fund-based working capital limit (long-/short-
term) maintained in Non-Cooperating Category with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR2.0 mil. Non-fund-based working capital limit (short-term)
maintained in Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 2, 2014. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Kalpataru Cold Storage was incorporated by G.P. Sinha in 1988 in
West Bengal. It operates a 220,092-quintal cold storage unit for
the preservation of agricultural produces, mainly seeds and table
potatoes, on a rental basis.
KAMLA SHIVHARE: CARE Reaffirms D Rating on INR4.70cr Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Kamla Shivhare (KSH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 4.70 CARE D Reaffirmed
Long-term/Short-
term Bank
Facilities 3.00 CARE D/CARE D Reaffirmed
Detailed Rationale & Key rating Drivers
The rating assigned to the bank facilities of KSH is primarily
constrained on account of stressed liquidity position leading to
overdrawing in Cash Credit Account.
Detailed description of the key rating drivers
Key Rating Weakness
Stressed liquidity position leading to overdrawing in Cash Credit
Account: In February 2018, the firm took ad-hoc limit for
participating in tenders invited by Madhya Pradesh government for
liquor shops. UCO Bank sanctioned ad-hoc limit in February 2018.
The same was adjusted with a delay of 1-2 months over and above
stipulated time. The account is regular since August 28, 2018.
The firm has fully utilized its working capital bank borrowings
during the past 12 months ending August, 2018.
Established in 1995, M/s Kamla Shivhare (KSH) is a sole
proprietorship firm which is into the business of retailing of
alcohol. KSH is part of Shivhare liquor group based in Madhya
Pradesh (MP). KSH holds retail liquor supplier license in MP and
undertakes retail trade of Indian made foreign liquor (IMFL),
beer, country liquor (CL), wine etc. The firm enters into open
tendering process every year to avail license for the retailing
of the liquor. Depending upon the allotment of shops during
tendering, the number of shops held by the firm varies every
year. The firm has license for various shops of IMFL and CL.
Shivhare Liquor group has other associate concern namely M/s Ram
Swaroop Shivhare, M/s Gopal Shivhare, M/s Laxmi Narayan Shivhare
& M/s Kalpna Shivhare all are engaged in similar business
activity.
KUDU INDUSTRIES: Ind-Ra Maintains BB- Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kudu
Industries Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR25 mil. Long-term loans maintained in non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) rating; and
-- INR75 mil. Fund-based working capital limit maintained in
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 13, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1990, Kudu Industries manufactures fabric at its
20-tonnes per day facility in Ludhiana, Punjab.
LALL OVERSEAS: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated K. Lall Overseas
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING) /
IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR300 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR80 mil. Proposed non-fund based limits migrated to non-
cooperating category with Provisional IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 21, 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 May 2005, K. Lall Overseas is engaged in the high
seas trading of various crude oil products.
LAXMINARAYAN SHIVHARE: CARE Lowers Rating on INR7cr Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Laxminarayan Shivhare (LSH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.00 CARE D Revised from CARE C
Facilities
Long-term/ 3.00 CARE D/CARE D Revised from
Short-term CARE C/CARE A4
Bank Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of LSH is primarily
constrained on account of stressed liquidity position leading to
overdrawing in Cash Credit Account.
Detailed description of the key rating drivers
Key Rating Weaknesses
Stressed liquidity position leading to overdrawing in Cash Credit
Account: In February 2018, the firm took ad-hoc limit for
participating in tenders invited by Madhya Pradesh government for
liquor shops. UCA Bank sanctioned ad-hoc limit in February 2018.
The same was adjusted with a delay of 1-2 months over and above
stipulated time. The account is regular since August 28, 2018.
The firm has fully utilized its working capital bank borrowings
during the past 12 months ending August, 2018.
Established in 1990, M/s Laxminarayan Shivhare (LSH) is a
proprietorship firm which is into the business of retailing of
alcohol. The firm also operates a warehouse named M/s Maa Kaila
Devi Warehouse. LNSH is part of Shivhare liquor group based in
Madhya Pradesh (MP). LNSH holds retail liquor supplier license in
MP and undertakes retail trade of Indian made foreign liquor
(IMFL), beer, country liquor (CL), wine etc. The firm enters into
open tendering process every year to avail license for the
retailing of the liquor. Depending upon the allotment of shops
during tendering, the number of shops held by the firm varies
every year. The shops are allotted in MP by the state government
through a competitive bidding process.
Shivhare Liquor group has other associate concern namely M/s Ram
Swaroop Shivhare, M/s Gopal Shivhare, M/s Laxmi Narayan Shivhare
& M/s Kalpna Shivhare all are engaged in similar business
activity.
MITTAL HOSPITALS: Ind-Ra Maintains BB- Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mittal
Hospitals Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR184.6 mil. Term loan maintained in Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) rating;
-- INR35 mil. Cash credit limits maintained in Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-fund-based working capital limits maintained
in Non-Cooperating Category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 12, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in September 2002, Mittal Hospitals runs a hospital
and a nursing college in Ajmer.
NANDRAJ RICE: Ind-Ra Retains B- Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Nandraj Rice
Mill's Long-Term Issuer Rating in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using the rating. The rating will continue to appear as
'IND B- (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR70 mil. Fund-based working capital limit maintained
in non-cooperating category with IND B- (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 15, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2014, Nandraj Rice Mill is engaged in rice
milling and packaging of non-basmati rice.
NECHUPADAM CONSTRUCTIONS: CARE Reaffirms B- on INR16.5cr Loan
-------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of
Nechupadam Constructions Private Limited (NCPL) at 'CRISIL B-
/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Cash Credit 16.5 CRISIL B-/Stable (Reaffirmed)
The ratings continue to reflect the company's modest scale of
operations in the intensely competitive civil construction
industry, below average financial risk profile and working
capital intensive operations. These weaknesses are partially
offset by the extensive industry experience of NCPL's promoter in
the civil construction industry.
Analytical Approach
Unsecured loans of INR3.75 crore from promoters have been treated
as Neither Debt Nor Equity (NDNE) since these funds are expected
to be retained in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive civil
construction industry: The company has booked modest scale of
operation of around INR24 crs in 2017-18 (refers to financial
year, April 1 to March 31). The modest scale of operations
restricts the company's ability to bid for large projects. Given
the low entry barriers in the civil construction segment and the
tender based nature of NCPL's operations, the company faces
intense competition from other players. Furthermore, the
company's revenues are entirely tender based and thus are highly
susceptible to the quantum of tenders floated by the customer and
the ability to successfully bid for the same.
* Below average financial risk profile: The company has a below
average financial risk profile as reflected in its high gearing
and below average debt protection metrics. The company has a high
gearing ratio of 4.09 times as on March 31, 2018 on account of
high utilization of bank limits. NCPL has below average debt
protection metrics marked by net cash accruals to total debt of
0.08 time and interest coverage ratio of 1.65 times as on
March 31, 2018.
* Working capital intensive operations: The company's operations
are highly working capital intensive reflected in its high gross
current assets (GCA) at 398 days as on March 31, 2018, primarily
on account of high debtors and work in progress.
Strength:
* Promoters' extensive industry experience and revenue visibility
due to moderate order book: The promoter Mr. K A Shaju has been
engaged in the civil construction industry for more than 2
decades. Over the years, the company has established
relationships with various government departments like KSEB and
Irrigation Department and also with private players.
Outlook: Stable
CRISIL believes NCPL will continue to benefit over the medium
term from the extensive experience of its promoter. The outlook
may be revised to 'Positive' if revenue and cash accrual improves
significantly while improving its working capital cyle resulting
in improvement in financial risk profile. Conversely, the outlook
may be revised to 'Negative' if revenue and operating margins
decline, or if sizeable debt-funded capital expenditure or delays
in project execution or in receiving payments further weakens
liquidity.
Set up in 2004, Kochi (Kerala)-based NCPL undertakes civil
construction works such as construction of bridges, dams,
powerhouses etc. majorly in Kerala. The operations of the company
are managed by its Managing Director Mr. K A Shaju.
NILSHIKHAA INFRAA: Ind-Ra Affirms 'BB+' LT Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Nilshikhaa
Infraa India Limited's (NIIL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based limits affirmed with IND BB+/Stable
rating; and
-- INR340 mil. Non fund-based limits affirmed with INDA4+
rating.
KEY RATING DRIVERS
The affirmation reflects NIIL's continued medium scale
operations, as indicated by revenue of INR1,035 million in FY18
(FY17: INR913million). The improved revenue in FY18 was driven by
higher order execution.
The ratings reflect NIIL's modest revenue visibility, as
reflected in its unexecuted order book of INR2,109 million which
is 2x of its revenue in FY18 to be executed by FY20.
Also, the liquidity continues to be tight, with 94.97% average
use of the fund-based facility in the 12 months ended August
2018.
The affirmation also factors in the company's healthy ROCE of 20%
in FY18 (FY17: 22.6%) and healthy operating margin of 5.9%
(5.2%). Moreover, the credit metrics are comfortable with
interest coverage of 3.8x in FY18 (FY17: 2.5x) and net leverage
of 0.7x (1.5x). The improvement in credit metrics was driven by
improved absolute EBITDA.
RATING SENSITIVITIES
Negative: A significant decline in the EBITDA margin leading to
gross interest coverage falling below 3.5x, on a sustained basis,
will be negative for the ratings.
Positive: A significant improvement in the revenue, driven by a
strong order book position and sustained credit metrics, will be
positive for the ratings.
COMPANY PROFILE
NIIL was incorporated in 2013 as a partnership firm. It
undertakes engineering, procurement and construction contracts
for rural electrification. In August 2016, it was converted into
a closely held limited company. The company was incorporated by
Arvind Kumar Tripathi, G.P Sahoo, Jagdish Kumar and Shivananda.
The registered office of the company is situated in Indore
(Madhya Pradesh).
PRADEEP TRANSCORE: CRISIL Reaffirms B+ Rating on INR5.5cr Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Pradeep Transcore Private Limited (PTPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (Reaffirmed)
Inland/Import
Letter of Credit 4.5 CRISIL A4 (Reaffirmed)
The ratings continue to reflect the company's large working
capital requirement and small scale of operations. These
weaknesses are partially offset by the promoters' extensive
experience in the electronic equipment and instruments industry,
and its adequate financial risk profile because of low gearing
and moderate debt protection metrics.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Gross current assets (GCAs)
were at 152 days as on March 31, 2018, but varied from 50-360
days in the past few years. That's because 70-80% of the revenue
comes from, and raw material is supplied by, a single party, GE
Power India, with which PTPL has flexible terms. Going forward,
working capital management is expected to improve over the medium
term on account of new customer addition with revised payment
terms, focusing on advance payments.
* Modest scale of operations: Revenue of INR36.28 crore in fiscal
2018 indicates the modest scale. The company is likely to remain
a marginal player in the competitive electronic equipment and
instruments industry over the medium term.
Strengths:
* Extensive experience of the promoters: The promoters have been
in the electronic equipment and instruments industry for around
three decades. Previously, they operated S K Industries, which
was set up in the mid-1980s.
* Moderate financial risk profile: The financial risk profile is
moderate because of comfortable capital structure reflected in
gearing of 1.10 times as on march31, 2018 and debt protection
metrics, reflected in interest coverage and net cash accrual to
adjusted debt ratio of 2.04 and 0.11 time, respectively, for
fiscal 2018. With moderate profitability, prepayment of debt, and
absence of significant debt-funded capital expenditure (capex)
plan, the financial risk profile should remain adequate over the
medium term.
Outlook: Stable
CRISIL believes PTPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if there is substantial and sustained revenue
growth and steady profitability, or improvement in working
capital management. The outlook may be revised to 'Negative' if
working capital management weakens, or if the company undertakes
large, debt funded capex, weakening the financial risk profile.
PTPL was set up as a proprietorship firm, Pradeep Machinery
Tools, in 2003, and was reconstituted as a private limited
company with the present name in 2005. It manufactures
laminations from cold-rolled grain-oriented steel and solid
insulating components for power and distribution transformers. It
is based in Allahabad, Uttar Pradesh.
PRAFULLYA COLD: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Prafullya Cold
Storage's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR12 mil. Long-term loans (Long-term) maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR39.8 mil. Fund-based working capital limit (Long-
term/Short-term) maintained in non-cooperating category with
IND D (ISSUER NOT COOPERATING) rating; and
-- INR1.5 mil. Non-fund-based working capital limit (Short-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 2, 2014. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated by GP Sinha in 1968 in West Bengal, Prafullya Cold
Storage operates a 106,829-quintal cold storage unit for the
preservation of agricultural produces, mainly seeds and table
potatoes, on a rental basis.
RAJ CONSTRUCTION: Ind-Ra Assigns 'BB-' Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Raj Construction
(RC) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based limit assigned with IND BB-/Stable
rating;
-- INR8 mil. Term loan due on July 2023 assigned with IND BB-/
Stable rating; and
-- INR30 mil. Non-fund-based limits assigned with IND A4+
rating.
KEY RATING DRIVERS
The ratings reflect RC's small scale of operations, given its
revenue was INR427 million in FY18 (FY17: INR302 million). The
rise in revenue on account of an increase in work order
execution. FY18 financials are provisional.
The ratings also reflect RC's modest credit metrics. In FY18,
RC's net financial leverage (total adjusted net debt/operating
EBITDAR) was 3.0x (FY17: 3.0x) and gross interest coverage
(operating EBITDA/gross interest expense) was 3.5x (2.2x). The
improvement in the coverage was due to a rise in EBITDA and a
fall in gross interest expenses.
The ratings, however, are supported by a comfortable EBITDA
margin, which rose to 5.0% in FY18 from 3.8% in FY17 on account
of a decline in raw material cost. Its return on capital employed
was about 20% in FY18 (FY17:12%).
The ratings are also supported by RC's comfortable liquidity,
indicated by its average 78.36% working capital limit utilization
for the 12 months ended August 2018. However, its working capital
cycle was modest at 45 days in FY18 (FY17: 35 days). The stretch
in the cycle was due to an increase in receivable and inventory
days. Its cash flow from operation turned negative at INR26.62
million in FY18 (FY17: INR17.36 million) owing to an increase in
working capital.
The ratings benefit from RC's partners' experience of 12 years in
the construction industry.
RATING SENSITIVITIES
Negative: A fall in the EBITDA margin, leading to deterioration
in the credit metrics, on a sustained basis, could be negative
for the ratings.
Positive: Substantial revenue growth, along with a rise in EBITDA
margin, leading to an improvement in the credit metrics, on a
sustained basis, could be positive for the ratings.
COMPANY PROFILE
RC is partnership firm that is engaged in civil works such as
road, building, irrigation and structural work. Its partners are
Mrs. Rekha Singh and Mrs. Mamta Singh.
RD CLEANTEACH: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained RD CleanTech
Pvt Ltd.'s Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR75 mil. Term loan maintained in non-cooperating category
with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last assigned on
December 2, 2014. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
RD CleanTech, a special purpose vehicle set-up by Ardee Hi-Tech
Private Limited and MASS Ventures to commission a lignite
processing plant for Gujarat Mineral Development Corporation
Limited on a build, own, operate and maintain basis.
RENUKA CONSTRUCTIONS: CRISIL Retains B Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facilities of Renuka Constructions
- Pune (RC) continues to be 'CRISIL B/Stable Issuer not
cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RC for obtaining
information through letters and emails dated February 28, 2018
and August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
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 RC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RC 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 RC continues to be 'CRISIL B/Stable Issuer not
cooperating.
RC is a proprietorship firm set up by Mr. Babu Mhehtre in 1993-94
(refers to financial year, April 1 to March 31). The firm
develops real estate in Pune. It has three ongoing projects:
Renuka Gulmarg Phase II, Renuka Tulsi, and Sai Mouli.
S.D.S. ELECTRONICS: CARE Lowers Rating on INR4cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
S.D.S. Electronics Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 4.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information (Rating revised
from CARE B; Issuer Not
Cooperating)
Short term Bank 5.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information (Rating revised
from CARE B; Issuer Not
Cooperating)
Detailed Rationale and key rating drivers
CARE has been seeking information from S.D.S. Electronics to
monitor the rating(s) vide e-mail communications/letters dated
September 13, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on S.D.S. Electronics Private Limited's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING.
Detailed description of the key rating drivers
The revision in the ratings takes into consideration the
following weaknesses.
On-going delays in debt servicing: There are instances of over-
utilization in working capital limits. The same is settled within
40 to 50 days. The instances are on account of weak liquidity
position of the company as the company is unable to generate
funds in timely manner leading to cash flow mismatches.
SDS was incorporated in 1993. The company is promoted and managed
by Mr Yogeshwar Sahdev and Mr Kuldeep Sahdev. SDS is engaged in
the manufacturing as well as trading of electronic security
equipments, Bomb Detection and Disposal Solution (BDDS) and Anti-
sabotage equipments which include the products like non-linear
junction detection, explosive detector, mine detector, deep
search metal/mine detector, bomb disposal suit, digital portable
X-Ray machine, multi zone walk through metal detector, search
lights, flash lights, search and rescue devices, etc. Its
manufacturing facility is located at Panchkula, Haryana.
The company caters to the need of reputed client base which
mainly includes government departments of India like all States
Police Departments, Paramilitary Forces, Defense Forces, Central
Industrial Security Forces, Defense Research and Development
Organization (DRDO), Ministry of Defense, Border Security Force
(BSF), etc. 84% of the total operating income in FY15 (refers to
the period April 1 to March 31) was through trading while the
remaining was through manufacturing. Furthermore, the supplier
base of the company includes both domestic suppliers for
electrical devices as well as renowned overseas suppliers
including LEMAX (Check Republic), STT Group (Russia), FLIR (USA),
Geotech (Russia), EIA (Italy), United Shield International (UK),
etc., with which SDS has relationship for the last 5-10 years.
S. M. AUTOSTAR: CARE Lowers Rating on INR7.99cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
S. M. Autostar Private Limited (SAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.99 CARE D Revised from CARE B;
Facilities Stable
Rating Rationale
The rating assigned to the bank facilities of SAPL is primarily
constrained on account ongoing delays in debt servicing.
Detailed description of the key rating drivers
Key rating weakness
Ongoing delay in debt servicing: There have been delays in debt
servicing on account of stressed liquidity position.
SAPL was incorporated in 2007 and is currently being managed by
Mrs Anisha Agarwal and Mrs Kusum Singh. SAPL is primarily engaged
in manufacturing of diverse products namely clutches, brake pads,
clutch plates etc., wind operative generator parts, construction
equipment parts and agricultural equipment. SAPL procures the raw
material mainly iron & steel sheets, bars, pipes, angles,
channels, rubber from the local suppliers in Faridabad. The
company mainly caters to various original equipment manufacturers
and large corporates domestically.
S. S. OIL: CRISIL Maintains B Rating in Not Cooperating Category
----------------------------------------------------------------
CRISIL said the rating on bank facilities of S. S. Oil Refinery
(SSOR) continues to 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSOR for obtaining
information through letters and emails dated Feb. 28, 2018 and
Aug. 31, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
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 SSOR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSOR 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 SSOR continues to 'CRISIL B/Stable Issuer not
cooperating.
SSOR, located in Sangli (Maharashtra) is established in 1999. It
is engaged in extraction and refining of cotton seed oil and
refining of various crude edible oils. It is jointly owned and
managed by Mr. Wahid Chini and his son Mr. Sarfaraz Chini
SAI SWADHIN: CRISIL Maintains B Rating in Not Cooperating
---------------------------------------------------------
CRISIL said the rating on bank facilities of Sai Swadhin
Commercials Private Limited (SSCPL) continues to be 'CRISIL
B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 3.75 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSCPL for
obtaining information through letters and emails dated February
28, 2018 and August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
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 SSCPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on SSCPL 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 SSCPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2008, SSCPL is engaged in extraction of rice bran
oil. The company has its processing unit located at Berhampur
(Odisha) and has total extraction capacity of 180 tonnes per day.
SSCPL is promoted by Mrs. Jami Nirmala, Mr. Jami Siva Sai, Mr.
Jami Ramesh and Mrs. Jami Kavita who also looks after the
operations.
SARVOTTAM ATTA: CARE Lowers Rating on INR18cr Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sarvottam Atta Private Limited (SAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 18.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB-; Stable;
ISSUER NOT CO-OPERATING on the
basis of best available
information
Short-term Bank 2.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4; ISSUER
NOT CO-OPERATING on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 5, 2018, placed the
ratings of SAPL under the 'Issuer non-cooperating' category as it
had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SAPL continues to be non-
cooperative despite repeated requests for submission of monthly
No Default Statement (NDS) through e-mails dated April 3, 2018,
April 5, 2018, April 7, 2018, April 12, 2018, April 18, 2018,
April 30, 2018, May 3, 2018, May 8, 2018, May 10, 2018, May 17,
2018, May 31, 2018, June 4, 2018, June 6, 2018, June 11, 2018,
June 22, 2018, June 29, 2018, July 2, 2018, July 4, 2018, July 6,
2018, July 11, 2018, July 19, 2018, July 31, 2018, August 1,
2018, August 3, 2018, August 16, 2018, September 3, 2018,
September 5, 2018, September 7, 2018, and numerous phone calls.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in ratings assigned to the bank facilities of SAPL
factors in the on-going delays in its debt servicing obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in servicing of debt obligations: There are ongoing delays
in debt servicing of SAPL owing to issues relating to
stretched liquidity.
SAPL was established as a proprietorship firm by Mr. Jilubhai
Chauhan in 2005 and was reconstituted as a private limited
company in June 2014. SAPL is engaged in the business of grain
processing (wheat) and produces flour and semolina (rava) and
sells it under the brand name 'Vanraj'. Its manufacturing
facility is located at Sihor in Gujarat and operates with an
installed capacity of 200 metric tonnes per day.
SENATOR MOTORS: CRISIL Maintains D Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the rating on bank facilities of Senator Motors
Private Limited (SMPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.25 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 22.00 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 9.24 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SMPL for obtaining
information through letters and emails dated February 28, 2018
and August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
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 SMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SMPL 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 SMPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'
SMPL, based in Mumbai and incorporated in October 2011, is
promoted by Mr. Puneet Lalit Kumar. The company started
operations in November 2011 as an authorised dealer of Skoda's
entire range of cars, spare parts, and accessories at Goregaon in
Mumbai.
SHREE KRISHAN: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shree Krishan Co
(Manufacturers) 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 the rating. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR55 mil. Fund-based working capital limit migrated to Non-
Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR117.9 mil. Term loan due on April 2022 migrated to Non-
Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR17.5 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
September 25, 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 1975, Shree Krishan Co (Manufacturers) started
commercial operations in 2013. It manufactures chips and snacks.
The company has an annual installed capacity of 6,700 metric tons
and sells its products under its own brand Njoy. It is managed by
Mr. KD Agarwal. Its registered office is in Howrah, West Bengal.
SHREE SHAKAMBARI: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the rating on bank facilities of Shree Shakambari
Rice Mill Private Limited (SSRMPL) continues to be 'CRISIL
B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSRMPL for
obtaining information through letters and emails dated
February 28, 2018 and August 31, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
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 SSRMPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on SSRMPL
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 SSRMPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
ARMPL was incorporated in 2009 by Mr. Ram Prakash Agarwal, Mr.
Rajnish Kumar and Mr. Satyadeo Roy. In 2013, the promoters
acquired SSRMPL, which was incorporated in 2006. The group is
engaged in manufacturing of parboiled rice. The group has its
manufacturing facilities in Jharkhand.
SOUBHAGYA PROCESSOR: CRISIL Maintains B Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the rating on bank facilities of Soubhagya Processor
Private Limited (SPPL) continues to be 'CRISIL B/Stable Issuer
not cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 1.63 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 4.87 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated February 28, 2018
and August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
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 SPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPPL 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 SPPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
SPPL was incorporated as a private limited company in 2010. The
company has set up a unit for dyeing and printing of textiles in
Sikandrabad (Uttar Pradesh). The company is promoted by Mr. Vipin
Jain, who has over two decades of experience in the textile
industry through group company, JVS Fab Pvt Ltd.
SPRAY ENGINEERING: CARE Lowers Rating on INR21cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Spray Engineering Devices Limited (SEDL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 21.00 CARE D Revised from CARE B+;
Facilities Stable
Short-term Bank 17.00 CARE D Revised from CARE A4
Facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
SEDL takes into account instances of devolvement of the Letter of
Credit (LC), for more than 30 days, because of weak liquidity
position of the company.
Detailed description of the key rating drivers
Key Rating Weaknesses
Instances of LC devolvement: On account of tight liquidity
position of SEDL, the LC limit availed by the company remained
devolved for more than 30 days.
Fortunes linked to the Sugar Industry: SEDL's products find
application in the sugar industry which is cyclic in nature.
Sugarcane is the key raw material used for the manufacturing of
sugar and sugar-related products. The availability and yield of
sugarcane depends on factors like rainfall, temperature and soil
conditions, demand-supply dynamics, government policies, etc. The
seasonality of the business has significant impact on the
profitability and sustainability of sugar mills which can have an
impact on the profitability and sustainability of companies like
SEDL.
Key Rating Strengths
Experienced promoters: The promoters of the company are having an
extensive experience of 25 years through their association with
SEDL and prior engagements in the sugar industry. Furthermore,
SEDL's established track record of operations has enabled the
company to establish strong business relationships with its
clientele in the market, which has led to repeat orders.
Spray Engineering Devices Limited (SEDL) was formed by merger of
two partnership firms, namely Spray Engineering Devices (started
in 1992) and C&C Systems in FY05. SEDL is promoted by Mr. Vivek
Verma and Mr. Prateek Verma, having it's cooperate office at
Mohali, Punjab and three manufacturing units in Baddi, Himachal
Pradesh, with an installed capacity of processing 50 tonnes sheet
metal per day. The Company is engaged in the manufacturing of
cooling and condensing system, its automation and energy saving
equipments (majorly used in the Sugar Industry) and is also a
turnkey supplier for the sugar plants.
SRI LAXMI: CRISIL Maintains B+ Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL said the rating on bank facilities of Sri Laxmi Venkatadri
Agro Food Industries (SLVA) continues to be 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 1.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Working Capital 2.5 CRISIL B+/Stable (ISSUER NOT
Demand Loan COOPERATING)
CRISIL has been consistently following up with SLVA for obtaining
information through letters and emails dated February 28, 2018
and August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
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 SLVA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SLVA 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 SLVA continues to be 'CRISIL B+/Stable Issuer not
cooperating.
Established as a partnership firm in 2010 and based in Koppal
(Karnataka), SLVA mills and processes paddy into rice, broken
rice, rice bran, and husk. The firm is promoted by Mr. N
Rajgopal, Mr. D Bheemesh, Mr. N Vijayalaxmi, and Mrs. D. Manjula.
SRI BHAGYALAKSHMI: CRISIL Maintains B+ Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facilities of SRI Bhagyalakshmi
Trading Corporation (SBTC) continues to 'CRISIL B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Mortgage Loan 3 CRISIL B+/Stable (ISSUER NOT
Facility COOPERATING)
Overdraft 20 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 2 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SBTC for obtaining
information through letters and emails dated Feb. 28, 2018 and
Aug. 31, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
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 SBTC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SBTC 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 SBTC continues to 'CRISIL B+/Stable Issuer not
cooperating'.
SBTC was established in 1972 by Mr. B A Ravi Prasad. The firm
processes chana and chana dal and trades in pulses, wheat, rice,
and other agricultural products. Its processing facility in
Bengaluru has a capacity of 1.5 tonnes per hour.
SUVILAS PROPERTIES: CRISIL Maintains B Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facility of Suvilas Properties
Pvt. Ltd. (SPPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 35 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated Feb. 28, 2018 and
Aug. 31, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
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 SPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPPL 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
facility of SPPL continues to 'CRISIL B/Stable Issuer not
cooperating'.
SPPL is a Bengaluru (Karnataka)-based real estate Development
Company incorporated in 2012. Its day-to-day operations are
managed by the managing director Mr. Sunil Chowdary.
SWAMBHUNATH COLD: CRISIL Reaffirms B- Rating on INR8.12cr Loan
--------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Swambhunath Cold Storage Private Limited (SCSPL) at 'CRISIL B-
/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.2 CRISIL A4 (Reaffirmed)
Cash Credit 8.12 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility .33 CRISIL B-/Stable (Reaffirmed)
Working Capital
Demand Loan 1.05 CRISIL B-/Stable (Reaffirmed)
The ratings reflect SCSPL's below-average financial risk profile
due to low networth and susceptibility to regulatory changes and
intense competition in the cold storage industry in West Bengal
(WB). These weaknesses are partially offset by the extensive
experience of its promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Weak financial risk profile: Networth is estimated to be small
at INR0.82 crore and gearing high at 12.23 times, as on March 31,
2018. Muted accretion to reserves will keep networth modest,
though gearing may improve with gradual debt repayment.
* Highly regulated and competitive cold storage industry: The
potato cold storage industry in WB is regulated by the West
Bengal Cold Storage Association. Rental rates are fixed by the
state's department of agricultural marketing, which limits
players' ability to earn profit based on strengths and
geographical advantages. Furthermore, the industry is highly
fragmented, with the largest player having a market share of less
than 0.5%, which further limits bargaining power and forces
players to offer discounts to ensure healthy capacity
utilisation.
Strengths:
* Extensive experience of promoters: Presence of more than two
decades in the cold storage industry has enabled the promoters to
ensure healthy utilisation of storage capacity.
Outlook: Stable
CRISIL believes SCSPL will continue to benefit over the medium
term from its promoters' extensive experience. The outlook may be
revised to 'Positive' in case of significant scale-up in
operations, while improving profitability and working capital
management. The outlook may be revised to 'Negative' if financial
risk profile, particularly liquidity, weakens further because of
substantial working capital requirement, decline in cash accrual,
or large, debt-funded capital expenditure.
Incorporated in 1994, SCSPL provides cold storage services to
potato farmers and traders. Facility in Paschim Medinipur, WB,
has cumulative capacity of 2,40,000 quintal.
TRIDEV RESINS: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Tridev Resins
Private Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR45 mil. Fund-based foreign bill discounting maintained in
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR20 mil. Non-fund-based letter of credit maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR2 mil. Non-fund-based bank guarantee maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR1 mil. Non-fund-based forward contract limits maintained
in non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR20 mil. Cash credit limits maintained in non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 22, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2006, Tridev Resins manufactures synthetic resins
and acrylic emulsions for printing inks, paints and surface
coating industries.
U. K. PAPER: CRISIL Withdraws B- Rating on INR5cr Cash Loan
-----------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of U. K.
Paper Converters Private Limited (UKPC) on the request of the
company and receipt of a no objection from its bank. The rating
action is in line with CRISIL's policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL has been consistently following up with UKPC 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.
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 they are arrived at without any
management interaction and are 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 UKPC. This restricts CRISIL's
ability to take a forward UKPC is consistent with 'Scenario 2'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BBB rating category or lower. Based on
the last available information, the rating on bank facilities of
UKPC continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
UKPC was set up as a partnership concern, U K Paper Converters
(UKP), in 2012. UKP was converted into a private-limited company
on April 01, 2014, and is managed by directors, Mr. Arvinder
Singh and Mr. Jaskirath Singh. UKPC manufactures note books and
writing and printing paper and trades paper. The company's plant
is situated in Kashipur (Uttarakhand).
VIJIT INTERNATIONAL: CARE Lowers Rating on INR6cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vijit International Private Limited (VIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable;
on the basis of best available
information
Short term Bank 1.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4; On the
basis of best available
information
Detailed Rationale and key rating drivers
CARE has been seeking information from VIPL to monitor the
ratings vide letters/emails communications dated July 3, 2018,
September 6, 2018, September 11, 2018, and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requiste information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the
ratings 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 VIPL'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 ratings.
The revision in the ratings assigned to the bank facilities of
VIPL take into account the on-going delay in its debt servicing.
Detailed description of the key rating drivers
Key Rating Weaknesses:
Ongoing delays in debt servicing: There is on-going delay in debt
servicing of the company. The cash credit account remained
continuous overdrawn for more than 60 days.
Vijit International Private Limited (VIPL) was incorporated in
October 2000 and it was taken over by Mrs. Prity Sharma and
Mr. Madhusudan Agarwalla in July 2015. The company is engaged in
trading of iron and steel products like coils, angles,
channels, pipes and TMT bar etc.
=========
J A P A N
=========
MITSUI OSK: Egan-Jones Lowers Senior Unsecured Ratings to C
-----------------------------------------------------------
Egan-Jones Ratings Company, on September 19, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Mitsui OSK Lines Ltd to C from B.
Mitsui OSK Lines Ltd. is a Japanese transport company
headquartered in Toranomon, Minato, Tokyo, Japan. It is one of
the largest shipping companies in the world. MOL fleet includes
dry cargo ships, liquefied natural gas carriers, Ro-Ro Car
Carrier ships, tankers, container ships, and container terminals.
===============
M A L A Y S I A
===============
BERJAYA MEDIA: 1Q Loss Widens to MYR2.75MM Due to Lower Revenue
---------------------------------------------------------------
Justin Lim at theedgemarkets.com reports that Berjaya Media Bhd,
the publisher of The Sun newspaper, has reported a bigger loss in
its latest quarterly financial results mainly due to a decrease
in revenue.
According to theedgemarkets.com, the Practice Note 17 (PN17)
company said net loss for the first quarter ended July 31, 2018
widened to MYR2.75 million, from MYR1.49 million a year ago. Loss
per share rose to 1.17 sen from 0.63 sen.
Quarterly revenue fell 27.22% to MYR7.37 million from MYR10.12
million a year ago, mainly due to lower advertising income
reported by subsidiary Sun Media Corporation Sdn Bhd, relates
theedgemarkets.com.
In a filing with Bursa Malaysia, Berjaya Media said it will
continue to focus on containing its cost and improving
advertising revenue, theedgemarkets.com relays.
But it said it expects conditions to remain challenging amid
prevailing economic conditions, which will impact the advertising
and promotion budgets of most corporate clients and advertisers.
theedgemarkets.com adds that besides initiating more marketing
efforts amid the challenging environment, the group said it is
exploring other options to turn around its business.
"The board has been exploring other options (including
diversifying into new businesses outside the media sector) to
strengthen the financial position of the group with the key
objective of regularising its PN17 condition," Berjaya Media, as
cited by theedgemarkets.com, said.
About Berjaya Media
Berjaya Media Berhad is an investment holding company. The
Company, through its subsidiaries, is engaged in publication,
printing and distribution of daily newspaper. The Company's
segments include investment holding, publishing and others. The
Company's publication, theSun, is read in the market centers of
the Klang Valley, Penang and Johor Bharu, as well as in cities
and towns of Peninsular Malaysia. The Company's publication
publishes news on politics and business, human interest and
governance, entertainment and lifestyle, and sports. theSun also
has an online presence at www.thesundaily.my, where top news of
the day is updated and presented to its readers. The Company
offers theSun through approximately 3,200 sunspots or pick-up
points along morning routes to the workplace, gym, college or
breakfast. The Company's subsidiaries include Sun Media
Corporation Sdn. Bhd. and Gemtech (M) Sdn. Bhd.
Berjaya Media slipped into PN17 (Practice Note 17) status in
June 2017 as its shareholders' equity fell short of listing
requirements.
The company has been granted an extension of time up to Dec. 20,
2018 to submit a regularisation plan to the regulatory
authorities.
====================
N E W Z E A L A N D
====================
MAINZEAL: Directors Ignored Risk for Almost a Decade, Court Hears
-----------------------------------------------------------------
BusinessDesk reports that significant governance risks existed at
failed construction company Mainzeal Property almost a decade
before the company collapsed, according to evidence from veteran
company director Sandy Maier.
But directors, including former Prime Minister Jenny Shipley,
didn't act.
Mainzeal Property and Construction, one of New Zealand's largest
building companies at the time, went into liquidation in February
2013 owing creditors, including numerous sub-contractors, more
than NZ$115 million.
In his statement of evidence prepared for the high-profile case
brought by Mainzeal liquidators BDO against the former directors,
Mr. Maier argued there were warning signs as early as 2004, when
Ms. Shipley became an independent director on the Mainzeal board,
BusinessDesk says.
BusinessDesk relates that these included the fact that
independent directors had virtually no control over multi-million
dollar related-party loans, and relied solely on assurances -
which turned out to be wrong - that the money would be repaid.
Mr. Maier first came to New Zealand from the US in 1986 as chief
executive of Citibank and has been on more than 500 boards in his
career.
He said in his evidence that between 2004 and 2008 the debt owed
to Mainzeal by related company MLG Trading rose to almost NZ$30
million.
At the same time, MLG got into financial difficulty, going from
having more than NZ$2 million in its coffers, to having almost
NZ$45 million of negative equity.
Yet Mainzeal directors didn't tell shareholders and contractors
about the problems, the report relays.
"Despite MLG's clear inability to repay that debt, the MLG loans
were not impaired in MPC's statements," the report quotes Mr.
Maier as saying.
He said it was irrelevant that auditors signed off the company's
annual accounts and didn't signal any problems until 2010, the
report relays.
"The role of a director is not simply to rely on the auditors'
figures without questions or separate assessment. A director is
required to look beyond the numbers to consider their reliability
and test the risks that may affect the company's position.
"I would have expected to see the collectability of the MLG loans
identified as a key risk . . . In fact, I would have expected to
see concerted efforts to secure repayment."
BusinessDesk relates that Mr. Maier said the way the company was
structured gave its ultimate parent company Richina Pacific too
much power, and the board too little.
"I would have expected to see efforts to gain better control of
the business.
Obtaining control and having all the information necessary to
make informed decisions about the business are fundamental
milestones for a board, the report states.
"The directors' efforts should have been focused on achieving
transparency of the shareholder [Richina Pacific]'s motivation,
the possibility of gaining tighter control of MPC [Mainzeal] from
its shareholder and ascertaining the risk of non-payment.
"By December 2008 I would have viewed these risks as significant
and increasing."
BDO is trying to recover NZ$75 million from the former
directors - or rather the professional liability insurance
companies standing behind them, BusinessDesk notes.
The Mainzeal directors - Shipley, Paul Collins, the former
Brierley Investments chief executive knighted in the 2015 New
Year's honours list, Peter Gomm and Clive Tilby - reject BDO's
arguments, according to BusinessDesk. Jack Hodder QC argued in
court last week they were "intelligent, thoughtful, involved and
conscientious directors of Mainzeal".
He said Mainzeal and its stakeholders "would likely have suffered
greater loss" if they had pulled the plug on the company earlier,
adds BusinessDesk.
About Mainzeal Property
Mainzeal Property and Construction Ltd is a New Zealand-based
property and construction company. The company forms part of the
Mainzeal Group, which is owned by Richina Inc, a privately held
New Zealand-based company with a strong China focus.
On Feb. 6, 2013, Colin McCloy and David Bridgman, partners from
PricewaterhouseCoopers, were appointed receivers to Mainzeal
Property and Construction Limited and associated entities as a
result of a request made by its director to BNZ.
Mainzeal's director, Richard Yan advised that following a series
of events that had adversely affected the Company's financial
position coupled with a general decline in major commercial
construction activity, and in the absence of further shareholder
support, the Company could no longer continue trading.
On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership
and nine others in the group that were not in receivership.
The companies now under the control of the liquidators are
Mainzeal Group, Mainzeal Property and Construction, Mainzeal
Living, 200 Vic, Building Futures Group Holding, Building Futures
Group, Mainzeal Residential, Mainzeal Construction, Mainzeal,
Mainzeal Construction SI, MPC NZ and RGRE.
Mainzeal is estimated to owe NZ$11.3 million to the BNZ,
NZ$70 million to unsecured creditors and NZ$5.2 million to
employees, NZN disclosed. Subcontractors are among the unsecured
creditors, said NZN.
=================
S I N G A P O R E
=================
AUSGROUP LTD: Noteholders to Vote on Maturity Date Extension
------------------------------------------------------------
Annabeth Leow at The Strait Times reports that AusGroup Ltd has
fixed a meeting for holders of its $110 million medium term notes
to vote on a possible extension of the maturity date, according
to a consent solicitation notice released on Sept. 27.
The report relates that noteholders will be asked to consider and
potentially pass an extraordinary resolution to again extend the
maturity date of the notes, which are now due on Oct. 20 with a
coupon rate of 8.45 per cent.
According to the report, the new maturity date would be four
years after satisfying the conditions precedent in a third
supplemental trust deed, which would be executed upon the passage
of the extraordinary resolution.
Interest on the notes would be tweaked, to 5 per cent for the
first year after the third supplemental trust deed conditions are
satisfied, 6 per cent for the second year, and 7 per cent a year
from then on, the Strait Times says.
The extraordinary resolution must be passed by at least 75 per
cent of the votes cast, the report notes.
Other items up for approval at the meeting include providing for
a make-whole premium of $7,680.96 for each note, to be paid on
Oct 20.
The notes, issued in 2014, were originally due in 2016 with a
7.45 per cent coupon rate, until noteholders agreed to extend the
payout date after the first consent solicitation exercise.
AusGroup has already held three informal meetings with
noteholders this year.
The upcoming vote will be held at 10:00 a.m. on Oct. 19, at Ocean
Financial Centre, the Strait Times discloses.
AusGroup Ltd (SGX:5GJ) -- http://www.agc-ausgroup.com/--
provides fabrication and manufacturing, construction,
scaffolding, insulation, painting, refractory and maintenance
services to natural resource development companies in Australia,
Singapore, and Thailand.
COMPACT METAL: Again Adjourns Scheme Meeting on Restructuring
-------------------------------------------------------------
Annabeth Leow at The Strait Times reports that Compact Metal
Industries has once more adjourned a court-ordered scheme meeting
on its restructuring plans, even as shareholders had been set to
vote on the plan on Sept. 27.
According to the report, Compact Metal said shareholders agreed
to push back the decision making, after being told that it would
give the company more time to secure financing approval from
funding institutions.
An extraordinary general meeting (EGM) on the same matter has
also been adjourned, with two resolutions up for voting on the
proposed adoption of a new company constitution and a general
share issue mandate, the report relates.
The Strait Times says Compact Metal revived an old plan in March
to transfer its shares and listing status to International Cement
Group by scheme of arrangement, and become an indirect, wholly
owned subsidiary.
Such a move would need the green light from a majority of the
shareholders who hold at least three-quarters of the company's
share value, the report says.
The scheme meeting, originally scheduled for July 30, will now be
held at 10:00 a.m. on Jan. 25, 2019 at 120, Pioneer Road, with
the EGM to be held half an hour later - or at "such earlier or
later time as soon as practicable following the conclusion or
adjournment of the scheme meeting," according to the Strait
Times.
Compact Metal Industries Ltd manufactures and markets aluminum
products in Singapore, Malaysia, Tajikistan, Afghanistan, and
Uzbekistan. The company operates through two segments, Aluminium
and Cement. The Aluminium segment offers aluminum windows and
doors for residential properties, and aluminum extrusions and
related products. It is also involved in aluminum architectural
contracts and engineering works, and the sub-contracting of
building construction projects. The Cement segment produces,
sells, and/or distributes cement. The company also invests in
land and buildings; and develops prototype equipment for the
generation of electricity through recycling of shredded tires.
Compact Metal Industries Ltd is based in Singapore. Compact Metal
Industries Ltd is a subsidiary of Victory Gate Ventures Limited.
===========
T A I W A N
===========
ACER INC: Egan-Jones Raises Sr. Unsecured Ratings to BB+
--------------------------------------------------------
Egan-Jones Ratings Company, on September 19, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Acer Incorporated to BB+ from BB.
Acer Incorporated is a Taiwanese multinational hardware and
electronics corporation, specializing in advanced electronics
technology, headquartered in Xizhi, New Taipei City, Taiwan.
*********
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
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***