Brief Rationale October 13, 2014 CARE ASSIGNS 'CARE BB ...

1 Credit Analysis & Research Limited

Brief Rationale

October 13, 2014

CARE ASSIGNS ‘CARE BB-’ RATING TO THE BANK FACILITIES OF

ESSEM 18 CONSTRUCTIONS

Rating

Facilities Amount

(Rs. crore)

Rating1 Remarks

Long term Bank Facilities 7.99 CARE BB-

(Double B Minus)

Assigned

Total Facilities 7.99

The rating assigned by CARE is based on capital deployed by the partners and the financial strength of the firm

at present. The ratings may undergo a change in case of withdrawal of capital or the unsecured loans brought

in by the partners in addition to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Essem 18 Constructions (E18C) is constrained by its relatively small

scale of operations, execution risks for the residential project under implementation with significant

promoters contribution yet to be infused, marketing risks associated given the increasing competition within

the real estate industry, geographical concentration risk with current projects being located at Bangalore

region and its constitution as a partnership firm.

The rating, however, derives strength from the experienced promoters in the real estate industry, successful

execution of its initial project, comfortable capital structure and advantageous location of the project with

moderate order booking status.

The ability of the firm to execute project within envisaged cost and the ability to sell the flats in a highly

competitive scenario at the envisaged prices in a timely manner are the key rating sensitivities.

Background

Essem 18 Construction (E18C) was setup in 2009 as a partnership firm by Mr. S M Venkatesh (Managing

Partner) and Mrs. S Vimala (Partner). The firm is engaged in construction and sale of residential apartments.

Till August 2014, the firm has completed one residential project aggregating saleable area of 68,942 sq. ft.

E18C has two on-going projects with a total saleable area of 3.32 lakh sq ft. E18C adopts the Joint

Development Agreement route of land development, keeping the investment in land at low levels. Under the

JDA, the land owner is compensated through sharing of built-up area.

1Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications.

http://www.careratings.com/

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Brief Rationale

Analyst Contact

Name: Rajani Tenali

Tel: 040 40102030/40102031

Email: [email protected]

CARE has classified instruments rated by it on the basis of complexity. This classification is available at

www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to

[email protected] for any clarifications.

Disclaimer

CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall

the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information

obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the

accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for

the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated

by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments.

In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the

partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of

withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial

performance and other relevant factors.

mailto:[email protected]

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Brief Rationale

October 13, 2014

CARE ASSIGNS RATINGS AND REAFFIRMS SHORT TERM RATINGS TO BANK FACILITIES OF

MAGNUM ESTATES LIMITED Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 13.20 CARE BBB-

(Triple B Minus) Assigned

Short term Bank Facilities 13.85 CARE A3 (A Three)

Reaffirmed


Rating Rationale

The aforesaid rating draws strength from the experience of promoters, long standing relationship with

clients, established procurement network and proximity to raw material sources, and satisfactory capital

structure with moderate profitability margin. The rating is, however, constrained by highly fragmented

industry with low entry barriers, intense competition in the export market, dependence on government

support in the form of export incentives, seasonal nature of the industry, geographical & client

concentration risk, foreign exchange fluctuation risk and inherent risk associated with sea food industry.

Ability to increase scale of operations & maintaining the capital structure and continuous government

support to the sector are the key rating sensitivities.

Background

Magnum Estates Limited (MEL) was incorporated by Mr. Ramesh Mahapatra in the year 1993; however,

the company commenced operations from the calendar year 1995. MEL is involved in the aquaculture

business, i.e. culturing of black tiger prawns and sea food exports. The company also has its own pre-

processing plant, including an ice-making plant at Naupalgadi, Balasore. It has an arrangement with its

other group entity engaged in the similar line of business, Magnum Sea Foods Limited for processing of

its products.

In FY14, the company’s total operating income was Rs. 101.47 crore with a PBILDT of Rs. 3.80 crore and

a PAT of Rs. 1.93 crore.

1 Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications


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Brief Rationale

Analyst Contact

Name: Mr. Vineet Chamaria

Tel: 033-40181600/1609


CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.

Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall

the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from

sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness

of any information and is not responsible for any errors or omissions or for the results obtained from the use of such

information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the

amount and type of bank facilities/instruments.


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Brief Rationale

October 10, 2014

CARE assigns CARE BBB (SO)/CARE A3 (SO) to the bank facilities of Agroh Rewa Ring Road Private Limited

Ratings

Facilities Amount

(Rs. crore) Rating1

Remarks

Long Term Bank Facilities 55.00 CARE BBB (SO)

[Triple B (structured obligation)] Assigned

Long Term/Short Term Bank Facilities

3.33 CARE BBB (SO)/CARE A3 (SO)

[Triple B (structured obligation)]/ [A Three (structured obligation)]

Assigned

Short Term Bank Facilities 0.90 CARE A3 (SO)

[A Three (structured obligation)] Assigned

Total Facilities @ 59.23

@Backed by unconditional and irrevocable corporate guarantee of Agroh Infrastructure Developers Private Limited (AIDPL) Rating Rationale

The ratings assigned to the bank facilities of Agroh Rewa Ring Road Private Limited (ARRRPL) are based on the credit enhancement in the form of an unconditional and irrevocable corporate guarantee extended by Agroh Infrastructure Developers Private Limited (AIDPL; rated ‘CARE BBB/CARE A3’).

The ratings assigned to the bank facilities of AIDPL continue to take into account its established track record of healthy toll collection from its sole build, operate and transfer (BOT)-based road project, good revenue visibility in the medium term, experienced promoters and moderate debt protection indicators.

Further, ratings also take into account AIDPL’s demonstrated execution capabilities marked by completion of two BOT projects in special purpose vehicles (SPVs) ahead of its schedule which has also resulted in growth in scale of operations during FY14 (refers to the period April 1 to March 31).

The ratings, however, are constrained by AIDPL’s increasing exposure to BOT-based road projects elevated by ‘with recourse’ nature of debt of its SPVs, along with delay in liquidation of the advances/investment extended to various companies and underperformance of its two SPVs. The ratings continue to be constrained by its geographically concentrated operations and challenging business environment faced by the construction industry.

Completion of the ongoing BOT projects within the envisaged time and cost parameters, performance of the entities whose debt has been guaranteed by AIDPL and the extent of exposure to BOT-based road projects impacting the credit profile of the company are the key rating sensitivities. Liquidation of loans/advances to various companies and monetization of investments in immovable property in a time bound manner would also be key rating monitorable.

Background

ARRRPL is a joint venture (JV) between AIDPL (60% stake) and Bhaiya Lal Shukla Infrastructure Private Ltd (40% stake). ARRRPL has entered into a 15 year concession agreement with Madhya Pradesh Road Development Corporation Ltd [MPRDC; an undertaking of Government of Madhya Pradesh (GoMP)] for the design-build-finance-operate and transfer (DBFOT) of 8.93 km road project in Madhya Pradesh (MP) on toll plus annuity basis.



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Brief Rationale

The project road under consideration aims at construction and development of Rewa Ring Road by four laning of Rathera junction at km 229/10 on national highway – 7 (NH-7) in Rewa town and ends at km 6/2 at Shilpra village on state highway - 9 (SH-9).

The concession agreement includes construction period of two years from appointed date. The total cost of the project is Rs.77.05 crore being funded through debt of Rs.55 crore and promoter contribution of Rs.22.05 crore. Out of total engineering, procurement and construction (EPC) cost of Rs.68.79 crore, ARRRPL has completed the EPC work of Rs.36.76 crore up to- July 31, 2014.

About the Guarantor

Agroh Infrastructure Developers Private Limited

AIDPL was originally incorporated as a SPV promoted by Singhal family of Indore and entered into a Concession Agreement with MPRDC in November 2001 for the strengthening, widening and rehabilitation of Ujjain-Agar-Jhalawad (UAJ) road project (SH-27) on BOT basis. The project is debt free and has a track record of generating healthy cash accrual and is scheduled to be handed over in April 2017. With award of new BOT projects, AIDPL has started executing EPC work for its own BOT based road projects from FY12.

Apart from one operational BOT project (UAJ) structured in its standalone balance sheet, AIDPL has currently seven BOT-based road projects (five in joint venture SPVs and two in wholly owned SPV) in its portfolio, of which two are operational; two are partly operational while the rest three are at various stages of execution.

During FY14, AIDPL reported a total operating income of Rs.269.61 crore (FY13: Rs.131.55 crore) with profit after tax (PAT) of Rs.38.10 crore (FY13: Rs.27.29 crore).

For a detailed rationale of AIDPL, please refer to www.careratings.com

Analyst Contact

Name: Maulesh Desai

Tel: 079-40265605










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Brief Rationale

October 10, 2014

CARE assigns ‘CARE AA-(SO)’ rating to bank facility of

Skyscape Developers Private Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long-Term Bank Facility ^ 300 CARE AA- (SO)

[Double A Minus (Structured Obligation)] Assigned

^ backed by an unconditional and irrevocable continuing corporate guarantee from Shapoorji Pallonji & Co. Pvt. Ltd

(SPCPL) for maintenance of debt service reserve for an amount equal to the succeeding 90 (ninety) days of interest

payment and an amount equal to the principal payment due in succeeding 30 (thirty) days throughout the tenure of

the facility

Rating Rationale

The rating assigned to the long term bank facilities of Skyscape Developers Pvt. Ltd. (SDPL) principally derives

comfort from the credit enhancement in the form of an unconditional and irrevocable revolving commitment from

SPCPL (rated CARE AA+) for maintenance of debt service reserve for an amount equal to the succeeding 90 (ninety)

days of interest payment and an amount equal to the principal payment due in succeeding 30 (thirty) days

throughout the tenure of the facility.

The rating is, however, tempered by inactive stage of project development, vacancy despite completion of one of

the towers since the past four years and cyclical nature of the real estate industry.

The rating remains sensitive primarily to any variation in credit rating of the guarantor i e SPCPL.

Rating Rationale of SPCPL

The rating of SPCPL principally derives strength from resourcefulness of the Shapoorji Pallonji group (SP group) and

its substantive financial strength mainly on account of being the largest private shareholder in Tata Sons Ltd (TSL,

holding company of the Tata group) with 18.37% stake. Additionally, strong financial flexibility of SPCPL with

considerably high level of unlocked value of its investments in diverse fields & land parcels further enhance credit

profile of the company.

The rating is also supported by the company’s proven track record in the construction, infrastructure & real estate

space, its well-diversified order book, healthy revenue visibility over the medium term and adequate liquidity.

The rating is, however, constrained by subdued profitability in its core business segment, weakening standalone

financial profile with leveraged capital structure, rise in the collection period and increasing financial support

extended to the group companies.

Ability of SPCPL to improve its operational profitability, manage working capital efficiently and unlock the optimum

value from its various assets continues to be the key rating sensitivities.



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Brief Rationale

Background

SDPL, incorporated in 2006, is a wholly owned subsidiary of Sprite Developers Mauritius Ltd. SDPL is carrying out a

development of three IT towers admeasuring 10.20 lacs square feet (lsf) under the name ‘SP Infocity’ along with 1

tower for service apartment and 1 tower for commercial and recreational activities in Manesar, Gurgaon. SPCL was

allotted an open plot admeasuring 9.44 acres by Haryana State Industrial & Infrastructure Development

Corporation LTD (HSIIDC) in 2006 to carry out the development. SDPL has entered in brand usage agreement with

SPCPL and the latter has been appointed as contractor and project management consultant.

About the DSRA Guarantor-SPCPL

SPCPL, the flagship company of the SP group, is one of the leading construction companies of India. SPCPL is

equally held by Mr Shapoor P Mistry and Mr Cyrus P Mistry through the group’s investment companies.

During its more than 148 years of operations, SP group has built diverse civil and engineering structures like

factories, nuclear waste handling establishments, stadiums and auditoriums, airports, hospitals, hotels, housing

complexes, water treatment plants, roads and power plants around the world.

Analyst Contact

Name: Ms. Rajashree Murkute

Tel: 022-6144 3505









amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the

partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of

capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant

factors.


9

Brief Rationale

October 10, 2014

CARE reaffirms ratings assigned to the bank facilities of

Ajanta Pharma Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term/Short-term Bank Facilities 120.00 CARE AA-/CARE A1+

[Double A Minus]/ [A One Plus] Reaffirmed

Long-term Loans 57.71 CARE AA-[Double A Minus] Reaffirmed

Short-term Bank Facilities 35.00 CARE A1+[A One Plus] Reaffirmed


Rating Rationale The rating assigned to the bank facilities of Ajanta Pharma Ltd continue to derive strength from its strong financial

risk profile characterised by consistent growth in revenues, backed by healthy profitability margins, favourable

capital structure along with comfortable liquidity and debt coverage indicators in FY14 (refers to the period April 1

to March 31) and Q1FY15. Furthermore, the ratings factor in APL’s wide geographical reach backed by well-

established marketing network, diversified product portfolio having established brands catering to multiple

therapeutic segments in generic formulations, accredited manufacturing facilities supported with well-equipped

R&D facility coupled with established track record and rich experience of the promoters in the pharmaceutical

industry.

The rating, however, is constrained by the APL’s modest size of operations, significant capex planned as compared

to its net-worth, increasing competition in the global generics market along with increasing pricing pressures and

exposure to foreign exchange fluctuations.

Going forward, APL’s ability to scale up its operations while sustaining its profitability margins, capital structure

and comfortable liquidity together with successful implementation of capex as per the planned funding profile

remain the key rating sensitivities.

Background

Incorporated in 1973, Ajanta Pharma Ltd (APL) is a mid-sized Indian origin pharmaceutical multinational company

involved into developing, manufacturing and marketing of Generic as well as Branded Generic formulations in

domestic as well as in export markets. The company is present in multiple therapeutic segments such as

Ophthalmology, Dermatology, Cardiology, Anti-infective/Anti-biotic (e.g. anti-malarial) as well as other specialty

therapeutic segments such as ENT, gastroenterology, orthopaedic, male erectile dysfunction, musculoskeletal as



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Brief Rationale

well as OTC segments. The manufacturing operations spans around five (four in Maharashtra (India) - managed by

APL and one in Mauritius-managed by its wholly owned subsidiary APML) manufacturing plants and a state-of-the-

art R&D centre under the name of “Advent” at Mumbai. During FY14, the company derived around 64% of its

overall revenues from export markets i.e. primarily from emerging markets such as Africa, Asia (excluding India)

etc. and remaining comes from domestic market.

As per FY14, APL posted a PAT of Rs.220.86 crore (FY13 – Rs 101.12 crore) on a total income of Rs.1,126.09 crore

(FY13 – Rs.846.08 crore). Furthermore, during Q1FY15 (un-audited), the company posted PAT of Rs.58.72 crore

(Q1FY14 – Rs 32.54 crore) on a total income of Rs.287.60 crore (Q1FY14 – Rs.220.99 crore).

Analyst Contact Name: Mr. Ravi.kumar Dasari

Tel: 022-67543421










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Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to the bank facilities of

Agroh Infrastructure Developers Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term/ Short-term Bank Facilities

60 CARE BBB / CARE A3 [Triple B / A Three]

Reaffirmed

Total Facilities 60

Rating Rationale The ratings assigned to the bank facilities of Agroh Infrastructure Developers Private Limited (AIDPL) continue to take into account its established track record of healthy toll collection from its sole build, operate and transfer (BOT)-based road project, good revenue visibility in the medium term, experienced promoters and moderate debt protection indicators. Further, ratings also take into account AIDPL’s demonstrated execution capabilities marked by completion of two BOT projects in special purpose vehicles (SPVs) ahead of its schedule which has also resulted in growth in scale of operations during FY14 (refers to the period April 1 to March 31). The ratings, however, are constrained by AIDPL’s increasing exposure to BOT-based road projects elevated by ‘with recourse’ nature of debt of its SPVs, along with delay in liquidation of the advances/investment extended to various companies and underperformance of its two SPVs. The ratings are continued to be constrained by its geographically concentrated operations and challenging business environment faced by the construction industry. Completion of the ongoing BOT projects within the envisaged time and cost parameters, performance of the entities whose debt has been guaranteed by AIDPL and the extent of exposure to BOT-based road projects impacting the credit profile of the company are the key rating sensitivities. Liquidation of loans/advances to various companies and monetization of investments in immovable property in a time bound manner would also be key rating monitorable. Background AIDPL was originally incorporated as a SPV promoted by Singhal family of Indore and entered into a Concession Agreement with Madhya Pradesh Road Development Corporation (MPRDC) in November 2001 for the strengthening, widening and rehabilitation of Ujjain-Agar-Jhalawad (UAJ) road project (SH-27) on BOT basis. The project is debt free and has a track record of generating healthy cash accrual and is scheduled to be handed over in April 2017. With award of new BOT projects, AIDPL has started executing Engineering Procurement and Construction (EPC) work for its own BOT based road projects from FY12. Apart from one operational BOT project (UAJ) structured in its standalone balance sheet, AIDPL has currently seven BOT-based road projects (five in joint venture SPVs and two in wholly owned SPV) in its portfolio, of which two are operational; two are partly operational while the rest three are at various stages of execution. During FY14 based on the provisional results, AIDPL reported a total operating income of Rs.269.61 crore (FY13: Rs.131.55 crore) with PAT of Rs.38.10 crore (FY13: Rs.27.29 crore).



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Brief Rationale

Analyst Contact

Name: Maulesh Desai

Tel # 079-40265605

Mobile # +91 9925139180

Email:[email protected]



Disclaimer CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors.

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Brief Rationale

October 10, 2014

CARE reaffirmed ratings assigned to bank facilities of

Maithan Alloys Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 55.00 (enhanced from 40.00) CARE A+ [Single A Plus] Reaffirmed

Short term Bank Facilities 227.00 (enhanced from 186.00) CARE A1 [A One] Reaffirmed


Rating Rationale

The ratings continue to draw strength from MAL’s experienced promoters & satisfactory track record, wide

geographical presence of the company, established & reputed clientele, strong presence in the export market,

comfortable liquidity & solvency position and healthy debt coverage indicators. The ratings are, however,

constrained by moderation in financial performance in FY14 marked by decline in total operating income & gross

cash accruals, high exposure towards group companies, working capital intensive nature of operation, profitability

susceptible to volatility in the prices of ferro alloys and its raw materials, foreign exchange fluctuation risk and

complete dependence of the ferro alloy industry on the fortunes of the cyclical steel sector.

The ability of MAL to improve the financial performance of its subsidiary, Anjaney Alloys Ltd (AAL), to whom it has

extended corporate guarantee, optimal utilization of its existing facility and effective management of working

capital are the key rating sensitivities.

Background

Maithan Alloys Limited (MAL), incorporated in 1985, is engaged in the manufacturing & trading of ferro alloys. MAL

has a total installed ferro alloys capacity of 64 MVA as on March 31, 2014, located at Kalyaneshwari, West Bengal

(49 MVA) and Ri-Bhoi, Meghalaya (15 MVA). The company is also engaged in the trading of metal & mineral

products and wind power operation. In FY15, revenue from sale of manufactured ferro alloys accounted for 74.8%

of total revenues (as against 77.0% in FY13), followed by trading segment at 25.0% (22.8% in FY13) and wind

power at 0.2% (0.2% in FY13).

During FY14, MAL reported PAT of Rs.22.98 crore on total operating income of Rs.818.10 crore as compared to

PAT of Rs.43.70 crore on a total operating income of Rs.862.35 crore in FY13.

Analyst Contact

Name: Mr Utkarsh Nopany Tel: +91 33 4018 1605 Email: [email protected]





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Brief Rationale







15

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to subordinated, Upper Tier II and perpetual bonds issues

and assigns ‘CARE AA+’ rating to the proposed long-term bonds issue of

Bank Of Maharashtra Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Tier-II Subordinated Bonds 425 CARE AA+

(Double A Plus) Reaffirmed

Upper Tier-II Bonds 850 CARE AA

(Double A) Reaffirmed

Perpetual Bonds 225 CARE AA

(Double A) Reaffirmed

Proposed Long-Term Bonds 1000 CARE AA+

(Double A Plus) Assigned

CARE has rated the aforesaid Upper Tier II Bonds and the Perpetual Bonds one notch lower than the Lower Tier II

Bonds in view of their increased sensitiveness to the Bank of Maharashtra’s (BoM) Capital Adequacy Ratio (CAR),

capital-raising ability and profitability during the long tenure of the instruments.

The ratings for these hybrid instruments factor in the additional risk arising due to the existence of the lock-in

clause in these instruments. Any delay in payment of interest/principal (as the case may be) following the

invocation of the lock-in-clause, would constitute an event of default as per CARE’s definition of default and as

such, these instruments may exhibit a somewhat sharper migration of rating compared to conventional

subordinated debt instruments.

The proposed long term bonds are unsecured and would rank pari-passu along with other uninsured, unsecured

creditors. These bonds are senior to the subordinated bonds of the bank.

RBI vide its circular dated July 15, 2014 has allowed banks to raise these bonds to finance their long term loans to

infrastructure as well as affordable housing with minimum regulatory pre-emption such as CRR, SLR and priority

sector lending.

Rating Rationale

The ratings take into account the continued majority ownership by the Government of India (GoI) supported by

capital infusions, healthy capitalisation parameters and growth in CASA deposits.

The ratings are, however, constrained by the regional concentration, deterioration in the earning profile,

profitability and asset quality during FY14 (refers to the period April 1 to March 31) and Q1FY15. The continued

ownership and support from the GoI, ability of the bank to improve its profitability and asset quality parameters

and maintain capital adequacy are the key rating sensitivities.

Background

Bank of Maharashtra (BoM) is a Pune-based public sector bank set up in 1935. The Government of India (GOI)

holds majority stake [85.21% as on March 31, 2014] in the bank. During FY14, the bank received capital support

from GOI in the form of equity share capital of Rs.800 crore (including share premium of Rs.622.38 crore).



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Brief Rationale

The bank had a network of 1,890 branches and 1,827 ATMs as on March 31, 2014 with nearly 62% of the branches

in the state of Maharashtra. About 58% of the branches are in rural and semi-urban areas. All the branches of the

bank are Core Banking Solution (CBS) enabled.

During FY14, the bank’s deposits and advances grew by 23.81% and 17.82%, respectively. The total income for

FY14 grew 22.09% to Rs.12,851 crore The Net Interest Income (NII) grew by y-o-y 11.60% in FY14. During the year,

the CASA remained at healthy level at 35.89% of the total deposits. The gross NPA ratio and net NPA ratio stood at

3.18% and 2.03%. BoM reported a Capital Adequacy Ratio (as per Basel III) of 10.79% (Tier I – 7.44%) as on March

31, 2014.

In Q1FY15 (refers to the period April 1 to June 30), the bank reported a PAT of Rs.117.82 crore on a total income of

Rs.3286.12 crore. The asset quality has deteriorated moderately compared with March 2014 with gross NPA at

4.23% and net NPA at 2.94%. The Total Capital Adequacy Ratio remained at 10.75% and Tier-I CAR at 7.42% as on

June 30, 2014. CASA deteriorated to 34.01% as on June 30, 2014.

Analyst Contact

Name: Leena Marne

Tel: 020-40009019

Mobile: 7738003771











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Brief Rationale

October 10, 2014

CARE Withdraws ‘CARE BBB (SO)’ rating and assigns in-principle ‘CARE BBB (SO)’ rating to the

bank facilities of Shristi Housing Development Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities - - Withdrawn

Long term Bank Facilities 110.00 In-principle CARE BBB (SO)

[In-principle Triple B (Structured Obligation)]

Assigned

Total Facilities@ 110.00 @backed by proposed credit enhancement in the form of unconditional & irrevocable corporate guarantee from its parent

company i.e. Shristi Infrastructure Development Corporation Ltd. (SIDCL) for the bank facilities of Shristi Housing Development

Limited (SHDL)

Rating Rationale

The rating of Shristi Housing Development Limited (SHDL) is based on the proposed credit enhancement in the

form of unconditional and irrevocable corporate guarantee provided by Shristi Infrastructure Development

Corporation Ltd. (SIDCL; rated: CARE BBB/CARE A3).

SIDCL’s ratings takes into account of long & satisfactory track record, support from promoters of Srei group,

professional management, experienced personnel & technical team and satisfactory order book position. The

ratings are, however, constrained by moderate financial risk profile, moderate liquidity position due to high

collection period, significant exposure to group companies, timely completion of Haldia township project and

order book concentration within the group. Ability to timely complete the projects in hand, performance of its

group companies to whom it has extended corporate guarantee and efficient management of working capital shall


Background

Shristi Housing Development Limited (SHDL), incorporated in 2007, is a wholly owned subsidiary of Shristi

Infrastructure Development Corporation Ltd (SIDCL), which is a part of Kolkata-based Srei promoter group. The

company is engaged in the real estate development activities. Currently, the company is developing 3 residential

cum commercial projects on 37.8 acres of area [comprising saleable area of 18.0 lakh sq feet (lsf)] at a cost of

Rs.473.5 crore. Furthermore, the company is developing various real estate projects (including hotel and hospital)

through JVs/subsidiaries.

Analyst Contact

Name: Mr. Utkarsh Nopany

Tel: 033-4018 1605




1Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications


18

Brief Rationale







19

Brief Rationale

October 10, 2014


Shristi Hotel Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 200.00 (200.00) CARE BBB (SO)

[Triple B (Structured Obligation)]

Reaffirmed

Total Facilities@ 200.00 @backed by unconditional & irrevocable corporate guarantee from its parent company i.e. Shristi Infrastructure Development

Corporation Ltd. (SIDCL) & Shristi Housing Development Pvt. Ltd. (SHDL) for the bank facilities of Shristi Hotel Private Ltd (SHPL)

Rating Rationale

The rating for Shristi Hotel Private Ltd (SHPL) is based on the credit enhancement in the form of unconditional and

irrevocable corporate guarantee provided by Shristi Infrastructure Development Corporation Ltd (SIDCL; rated:

CARE BBB/CARE A3) and Shristi Housing Development Ltd (SHDL).

SIDCL’s ratings takes into account of long & satisfactory track record, support from promoters of Srei group,







Background

Shristi Hotel Private Limited (SHPL), incorporated in 2004, is jointly promoted by Srei promoter group of Kolkata

and Sun Apollo, an India dedicated real estate private equity fund. SHPL is setting up a 325 room ‘five star deluxe’

category hotel in Rajarhat, Kolkata at a cost of Rs.347.5 crore. The project is being financed at a debt equity ratio of

1.36:1 and expected to be commissioned by April 2015. As of Sep 15, 2014, the company has incurred project cost

worth Rs.240.0 crore, which has been funded through equity of Rs.140.0 crore and secured term loan of Rs.100.0

crore.

SHPL has entered into operating, technical and trademark license agreement with Starwood Asia Pacific Hotels &

Resorts Pte. Ltd. (“Starwood”), one of the world’s largest hotel and leisure companies, to operate the hotel under

the ‘Westin’ brand for a period of 15 years with effect from opening of the hotel and is renewable for two

consecutive periods of five years on mutually accepted terms and conditions.

Analyst Contact


Tel: 033-4018 1605




20

Brief Rationale









21

Brief Rationale

October 10, 2014


Shristi Infrastructure Development Corporation Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 50.00 (50.00) CARE BBB (Triple B)

Reaffirmed

Long term / Short term Bank Facilities 20.00 (20.00) CARE BBB / CARE A3 (Triple B / A Three)

Reaffirmed


Rating Rationale

The ratings continue to draw comfort from long & satisfactory track record, support from promoters of Srei group,







Background

Shristi Infrastructure Development Corporation Ltd (SIDCL), incorporated in 1990, is promoted by Kolkata-based

SREI promoter group. SIDCL started commercial operation in 1999. The company is engaged in construction of

roads, bridges, buildings, power, hotel, etc. Besides construction activities, SIDCL is developing an integrated

township at Haldia, West Bengal on 63 acres in phase-wise at a cost of Rs.142.1 crore. The township project is

expected to be completed by March 2017.

Based on FY14 result (refers to the period from April 1 to March 31), SIDCL reported PAT of Rs.2.42 crore (Rs.2.42

crore in FY13) on total operating income of Rs.124.37 crore (Rs.116.26 crore in FY13). In Q1FY15, SIDCL’s PAT stood

at Rs.0.64 crore on total operating income stood at Rs.30.46 crore.

Analyst Contact


Tel: 033-4018 1605






22

Brief Rationale







23

Brief Rationale

October 10, 2014

CARE reaffirms ratings assigned to bank facilities of

Greenesol Power Systems Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 10 CARE BBB (Triple B )

Reaffirmed

Long term / Short term Bank Facilities 95 CARE BBB/CARE A3 (Triple B/A Three)

Reaffirmed

Total Facilities 105

Rating Rationale

The ratings assigned to the bank facilities of Greenesol Power Systems Private Limited (GPSPL) continues to factor

in long track record of operations, support from Hangzhou Steam Turbine Co Ltd (one of the leading turbine

manufacturers in China), coupled with the Indian promoter’s experience in various businesses, improvement in

capital structure and profitability in FY14 (refers to the period April 01 to March 31) .

However, the ratings are constrained by slow moving orders leading to a decline in turnover over the last two

years period ending March 31, 2014, high client concentration and exposure to geopolitical risks with majority of

the orders from overseas markets & stretched receivables positions.

The ability of the company to improve the scale of operations, execute the current orders and build its future

order book coupled with its ability to realize its receivables on time and reduce its dependence on creditors are

key rating sensitivities.

Background

Greenesol Power Systems Pvt Ltd (GPSPL) was incorporated in the year 2003 and is jointly promoted by Mr J S R

Prasad, Mr Sridhar Nambi and Hangzhou Steam Turbine Co Ltd, China (HTC), holding 43.61%, 7% and 37% of the

stake, respectively in the company, as on March 31, 2014. GPSPL started its operations by providing services of

design, supply of machinery and erection of thermal power plants. However in 2007, erection of the power plant

and after sales services portion of the business was transferred to a new company, ie, Greenesol Power Services

Pvt Ltd (GPPL) and GPSPL continued the design and supply of machinery portion of the business. HTC was

incorporated in the year 1948 and is one of the largest turbine manufacturers (up to 150 MW capacities) in China.

In FY14, GPSPL registered a PAT of Rs. 4.55 crore (net loss of Rs 6.48 crore in FY13) on a total income of Rs. 181.80

crore (Rs. 301.82 crore in FY13).

Analyst Contact

Name: Ms Jumana Badshah

Tel: 040-40102030






24

Brief Rationale







25

Brief Rationale

October 10, 2014

CARE revises the rating assigned to the bank facilities of

International Trading Corporation

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 10 CARE BB+

[Double B Plus] Revised from CARE BB

(Double B)

Total Facilities 10

Rating Rationale

The revision in the rating factors in consistent improvement in the operational and financial

performance of International Trading Corporation (ITC) during the past three years ended March 2014.

The rating, however, continues to be constrained by the working capital intensive nature of operations,

its constitution as a proprietorship firm, highly competitive nature of the steel trading industry and

volatile raw material prices.

The rating continues to benefit from the longstanding experience of the promoters in the line of

business. Going forward, ability of ITC to further increase the scale of operations, improve profit margin

and effectively manage its working-capital requirements would be the key rating sensitivities.

Background

ITC is a proprietorship firm engaged in the business of trading of various Iron and Steel Products such as

HR (Hot Rolled) Plates, Sheets and Coils of various sizes and grades. The firm is based out of Chennai and

was established in 1994 by Mr Naval Kishore Agarwal (Proprietor). He is supported by his father Mr

Bankatlal Agarwal who has been in this business for over 2 decades. Other family members take care of

the administrative activities of the business. The proprietor along with his brother and other family

members also run two sister concerns namely, International Steel Processors and International Steel

Exchange Pvt Ltd which are also involved in the trading of Iron and steel. The firm has a warehouse for

inventory storage purposes at Kadapakkam, Chennai.

As per the audited results for FY14 (refers to the period April 1 to March 31), ITC reported a net profit of Rs.3 crore

on a total income of Rs.276.72 crore as against a net profit of Rs.1.99 crore on a total income of Rs.329.33 crore

during FY13 (Audited).

1 Complete definition of the ratings assigned are available at www.careratings.com and in other CARE publications


26

Brief Rationale

Analyst Contact

Name: Harihara Subramanian C

Tel: 044-28490876













factors.

27

Brief Rationale

October 10, 2014

CARE revises ratings assigned to bank facilities of

ACE Tyres Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 41.92

(reduced from 46) CARE A-

(Single A Minus) Revised from CARE BBB

[Triple B]

Short term Bank Facilities 6.63 CARE A2 (A Two)

Revised from CARE A3 [A Three]


Rating Rationale

The revision in the ratings assigned to the bank facilities of Ace Tyres Limited (ATL) reflects its improved financial

and operational performance during FY14 (refers to the period April 01 to March 31), and successful completion of

major expansion plan which increased installed capacity leading to higher volumes in FY14. The company was also

able to get higher conversion rates from its clients in FY14.

The ratings continue to derive strength from experienced promoters and long track record of the group in the tyre

industry, long-term off-take agreement with its major client and established relationship with major tyre

manufacturers. The ratings are however constrained by relatively small scale of operations due to low value added

job work and high client concentration risk.

The ability of the company to pass on increase in the costs, ensure increased off-take from the existing clients,

acquire new clients to reduce concentration risk, and further rationalize its debt thereby improving its capital

structure would be the key rating sensitivities.

Background

ATL incorporated in August, 2001 belongs to Hyderabad-based Exel Group. The group is into manufacturing of

automotive tubes, tyres, flaps & bladder, since inception in 1987. ATL is primarily engaged in manufacturing of

automotive tyres (two wheelers, three wheelers) on job work basis. ATL has two manufacturing plants on the

outskirts of Hyderabad. The company commenced operations initially by manufacturing only two and three

wheeler tyres on conversion basis for CEAT Ltd (rated CARE A/CARE A1). ATL completed a major expansion which

increased the manufacturing capacity from 24,000 MT/year in FY12 to 48,000 MT/year in FY14.

Analyst Contact


Tel: 040-40102030






28

Brief Rationale







29

Brief Rationale

October 10, 2014

CARE revises the ratings assigned to bank facilities of

AHW Steels Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 75 ‘CARE BBB-’ (Triple B Minus) Revised from CARE BB+

(Double B Plus)

Short-term Bank Facilities 5 ‘CARE A3’ (A Three) Revised from CARE A4+

(A Four Plus )

Long-term Bank Facilities - - Withdrawn

Total Facilities 80

Rating Rationale

The revision in the ratings of AHW Steels Ltd. (AHW) takes into account the consistent increase in scale of

operation over the last three fiscals with relatively stable profit margins and comfortable capital structure. The

ratings continue to draw strength from the experience of the promoters, long track record of operation and

established network of suppliers and customers. The ratings are, however, constrained by the company’s thin

profitability margins as well as exposure of the company’s profitability to volatility in the prices of traded products,

high working capital intensity of the operations and intense competition. Improving profitability margins,

maintaining capital structure and effective management of working capital would remain the key rating

sensitivities.

Background

AHW was promoted in 1941 by the Beriwal family and was engaged in manufacturing of tor steel. The Bagaria

family of Kolkata took over the company in 1982 and since then AHW is a part of the Bagaria group, which has

interests in tea plantations, steel, power and real estate sectors. AHW, the steel company of the group, began

rolling mill operation in 1985 and has a capacity of 48,000 tpa (tonne per annum) for rolled products. However, the

rolling mill has been mostly non-operational since January 2012 due to unviable operation on account of high raw

material cost and almost the entire operating income in FY14 is derived from trading in wire rods, TMT bars &

other steel products.

The company currently has two wind turbine generators, with a total power generation capacity of 2.5 megawatts,

in Maharashtra.

In FY14 AHW achieved PAT of Rs.2.19 crore on net sales of Rs.580.24 crore. The company achieved net sales of

Rs.141 crore in Q1FY15.



30

Brief Rationale

Analyst Contact

Name: Mamta Muklania Tel: 033-4018 1600 Mobile: 98304 07120 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.









31

Brief Rationale

October 10, 2014


E-City Digital Cinemas Private Limited Ratings

Facilities Amount (Rs. crore)

Ratings1 Remarks

Long-term Bank Facilities 27.25 CARE BBB (Triple B )

Revised from CARE BBB- (Triple B Minus)

Long-term Bank Facilities 23.00 CARE BBB (Triple B )

Reaffirmed


Rating Rationale

The ratings revision takes into account E-City Digital Cinemas Private Limited’s (E-City) expanded scale of

operations compared with the previous years and long term nature of contract agreed with cinema exhibitors,

thus assuring stable revenues for the near term. The rating continues to derive strength from the strong parentage

(Essel group), financial support from the promoters, comfortable debt coverage metrics (after adjusting for

intangible assets) and strategic alliance with Real Image Media Technology Private Limited.

However, the rating is constrained by the moderate scale of business operations and expansion being carried out

majorly through debt which may impact the current leverage ratios, high capital intensive nature of operations,

highly competitive sector and risks associated with change in technology.

The ability of E-City to add and retain exhibitors on favorable commercial terms, continuity of joint venture with

Real Image and generate sufficient internal cash accruals to support the future capex plans are the key rating

sensitivities.

Background

E-City Digital Cinemas Private Limited (E-City) was incorporated in 2001 as part of the entertainment businesses of

the Essel group. E-City is a 100% subsidiary of E-City Investment and Holding Company Private Limited and

operates as a system integrator supplying digital projection systems to theatres across India. As on March 31,

2014, E-City has digitised 735 screens and majorly operates in film territories like Mumbai, Delhi, Rajasthan, Tamil

Nadu, Karnataka and Kerala.

In FY14 (refers to the period April 01 to March 31), E-City posted a total income of Rs.27.88 crore (vis-à-vis Rs.35.11

crore in FY13) and a loss of Rs.3.76 crore (vis-à-vis loss of Rs.6.84 crore in FY13) on consolidated basis. Furthermore

during Q1FY15, E-City has posted total income of Rs.4.44 crore and PBILDT of Rs.2.71 crore (vis-à-vis total income

of Rs.5.99 crore and PBILDT of Rs.1.78 crore during Q1FY14).



32

Brief Rationale

Analyst Contact Name: Ms. Savita Iyer Tel # 022 6754 3406 Email: [email protected]









33

Brief Rationale

October 10, 2014

CARE revises and reaffirms rating assigned to the bank facilities of

IFGL Exports Ltd. Ratings

Facilities Amount (Rs. crore) Ratings1 Remarks


(enhanced from 36.74)

CARE AA- (SO) [Double A minus

(Structured Obligation)]

Revised from CARE A+ (SO) [Single A plus


Short Term Bank Facilities 2.00

(reduced from 5.00)

CARE A1+ (SO) [A one plus (Structured

Obligation)] Reaffirmed


* backed by unconditional & irrevocable guarantee of IFGL Refractories Ltd.

Rating Rationale

The rating of IFGL Exports Ltd. is primarily based on credit enhancement in the form of ‘unconditional &

irrevocable guarantee’ of IFGL Refractories Ltd (IFGL; Rated CARE AA-/A1+ for its various instruments/facilities,

being revised from CARE A+/A1+) for all its bank facilities.

The revision in rating of IFGL takes into account the improvement in the financial risk profile of the company

marked by improvement in the profit level & margins & gearing ratios and strong debt protection metrics. The

rating also draws strength from the experience of the promoters and their strong technical collaboration,

established brand image with prominent position in the domestic refractory segments. The ratings also take into

account the improvement in the consolidated financial performance of the company.

The ratings are, however, constrained by price volatility of the raw materials with limited pricing power, exposure

to group companies, foreign exchange fluctuation risk, major dependence on the fortunes of steel industry with

increasing competition arising out of cheaper imports and presence of a number of unorganized players.

The sales price realization coupled with the movement of Euro currency vis-à-vis Rupee, key raw material prices

and prospects of the steel industry remain the major ratings sensitivities.

IFGL Exports Ltd. – Background

IFGL Exports Ltd (IEL), promoted by Shri S.K. Bajoria of Kolkata, is a subsidiary (51%) of IFGL Refractories Ltd. IEL

has manufacturing facilities for refractories (capacity 90,000 pieces per annum) at Kandla Special Economic Zone

(SEZ), Gujarat which commenced operations from May 2012. The performance of IEL has improved in FY14 and it

has reported profits of Rs.3.5 crore in FY14, in its first full year of operation vis-à-vis loss of Rs.5.7 crore in FY13.

About the Guarantor

IFGL Refractories Ltd.

IFGL, incorporated in 1989, is the flagship company of S K Bajoria group of Kolkata. The company is engaged in

manufacturing of special refractories and operating systems for the steel industry and bio-ceramic products at its

factory at Kalunga Industrial Estate near Rourkella, Orissa. Currently, the company has aggregate manufacturing

capacity of shaped refractories (7,76,000 pcs), unshaped refractories (24,000 MT), shaped ceramics (10,000 pcs)

and unshaped ceramics (50.0 kg). IFGL is one of the few refractory manufacturers in India with a market presence

across the country with a market share of around 15%. The company has longstanding relationships with various

reputed steel plants due to which it is able to garner regular orders.



34

Brief Rationale

IFGL earned PBILDT of Rs.45.0 crore and PAT (after defd. tax provision) of Rs.24.3 crore on Total Operating Income

of Rs.327.4 crore in FY14.

Analyst Contact

Name: Vineet Chamaria

Tel: 033-40181609

Mobile: +91 9051730850













factors.

35

Brief Rationale

October 10, 2014

CARE revises the ratings assigned to the bank facilities of Cl Gupta Exports Ltd

Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 34.47

(14.42) CARE BBB (Triple B)


Short-term Bank Facilities

70.25 (55.67)

CARE A3 (A Three) Reaffirmed


Rating Rationale

The revision in the ratings of bank facilities of CL Gupta Exports Ltd (CLGEL) takes into account the improvement in

the company’s financial risk profile and profitability driven by its increasing scale of operations and backward

integration initiatives undertaken by it. The ratings continue to draw support from CLGEL’s experienced promoters

and its position as one of the leading exporters of the decorative and utility-based handicraft items with a

diversified product profile. The ratings also take into consideration the company’s long-standing association with

reputed international clientele and the government support to the handicraft industry.

However, the ratings are constrained by the working-capital intensive nature of the company’s operations,

susceptibility of the company’s operating margins to the fluctuation in raw material prices and foreign exchange

rates.

Going forward, the company’s ability to profitably scale up its operations while effectively managing its working

capital requirements and maintain a moderate capital structure shall remain the key rating sensitivities.

Background

CL Gupta Exports Ltd (CLGEL) was incorporated in March 2004. However, the commercial operation of the

company’s manufacturing unit commenced from April 2005. The company is primarily involved in the

manufacturing & export of handicraft/decorative items made of glass, wood and metals such as aluminum, brass,

steel and iron. Its manufacturing unit is situated in Moradabad (UP) having integrated facilities for processing

metal, glass and wood with in-house facilities for casting, pressing, spinning, welding, polishing and plating. Major

export destinations for CLGEL are the USA, European Union, China, Malaysia etc.

During FY14 (refers to the period April 1 to March 31), on a total operating income of Rs.225.33 crore, the

company reported a PBILDT and PAT of Rs.25.31 crore and Rs.8.26 crore, respectively. Furthermore, during

Q1FY15 (provisional) (refers to the period April 1 to June 30), the company has reported a PBILDT of Rs.6.69 crore

on a total operating income of Rs.53 crore.



36

Brief Rationale

Analyst Contact

Name: Ajay Dhaka

Tel: 011-45333218













factors.


37

Brief Rationale

October 10, 2014

CARE suspends the rating assigned to the bank facilities of

Unix Connections Private Limited

CARE has suspended, with immediate effect, the ratings assigned to the long- term bank facilities of Unix

Connections Private Limited. The ratings have been suspended as the company has not furnished the information

required by CARE for monitoring of the rating.

Analyst Contact

Name: Nitesh Dhoot

Tel: 022- 6754 3442 Email: [email protected]











38

Brief Rationale

October 10, 2014

CARE reaffirms the rating assigned to the bank facilities of

Shri Ram Charitable Trust

Rating


Ratings1 Remarks


(reduced from 14.91 ) CARE BB+

(Double B Plus) Reaffirmed


Rating Rationale

The rating continues to be constrained by Shri Ram Charitable Trust’s (SRCT) small scale of operations, intense

competition from established & educational institutes and regulated nature of the education sector in India. The

rating also takes cognizance of delays in realizations from Samaj Kalyan Vibhag (UP government body).

The rating however draws comfort from the management’s experience in the field of education, comfortable

capital structure, wide spectrum of courses & moderate enrollment ratio, modern infrastructure with the latest

available technology.

Going forward, the ability of trust to attract and enroll students as envisaged in a competitive scenario, maintain

its favorable capital structure while sustaining the profitability margins shall be the key rating sensitivities.

Furthermore, timely realization of fee from Samaj Kalyan Vibhag will also be the key rating sensitivity.

Background

SRCT was formed in the year 2003 as a public charitable trust registered under Section 12A of the Income Tax Act,

to establish educational institutes imparting education in various professional disciplines in Muzaffarnagar, Uttar

Pradesh. SRCT was promoted by Mr Subhash Chandra Kulshreshtha. The strategy and policy decisions of SRCT are

taken by the trust board comprising five members headed by Mr S C Kulshreshtha, president of the trust.

Presently, the trust has six institutes spread over an area of 2 hectares offering graduation and post-graduation

courses in various disciplines like engineering, management, law, polytechnic, architecture, journalism & mass

communication, fine arts, information technology and media under the brand name ‘Shri Ram Group of College’.

Shri Ram College is the oldest institute amongst all, with highest contribution to the overall revenue of the trust.

The various courses offered by SRCT are affiliated to U.P. Board of Technical Education (UPBTE), Chaudhary Charan

Singh (C.C.S) University, Meerut and Mahamaya Technical University (MTU), Uttar Pradesh.

For FY14 (refers to the period April 1 to March 31), SRCT achieved a total operating income of Rs.21.04 crore with a

surplus of Rs.7.93 crore against Rs.16.20 crore and Rs.5.46 crore respectively for FY13. Till September 15, 2014, the

trust has achieved a total operating income of Rs.10 crore.



39

Brief Rationale

Analyst Contact

Name: Achin Nirwani

Tel: 011- 45333228




Disclaimer

CARE’s Ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the

concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources

believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any

information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type

of bank facilities/instruments.




factors.


40

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to bank facilities and NCD issue of

Magma Housing Finance Ratings

Facilities/Instruments Amount

(Rs. crore) Ratings

1 Remarks

Facilities

Long-term bank facilities 1,000.25

(enhanced from 675) ‘CARE AA-’

(Double A Minus) Reaffirmed

Total Facilities 1,000.25

Instrument

Non-Convertible Debentures (NCD) 171

(reduced from 190)

‘CARE AA-’

(Double A Minus) Reaffirmed

Rating Rationale

The ratings assigned to Magma Housing Finance (MHF) continue to draw significant strength from the long track

record and support of its current promoter - Magma Fincorp Ltd. (MFL, rated CARE AA/CARE A1+), operational

synergies due to usage of existing infrastructure of MFL. The ratings also draw comfort from the diversified asset

portfolio of MHF, comfortable capital adequacy ratio (CAR) and gradual scaling up of operations under the current

management. The rating also factors in the moderate resource profile, portfolio concentration risk, moderate asset

quality and moderate maturity profile of MHF. Continued support from the promoters, consistent growth in scale

of operations, managing asset liability maturity profile, improving asset quality and profitability parameters while

maintaining the CAR would remain the key rating sensitivities.

Background

MHF, an unlimited liability company, was initially promoted as GE Money Housing Finance (GEMHF) by GE Capital

Corporation which is a 100% subsidiary of General Electric Company, USA. Subsequently, on February 11, 2013, the

company was acquired by Magma Fincorp Ltd (MFL; rated CARE AA/CARE A1+). The name of GEMHF was changed to

its present name in March, 2013. MHF is engaged mainly in providing housing loans and home equity loans to

individuals. The company is registered with National Housing Bank (NHB) as a non-deposit taking Housing Finance

Company.

Besides acquiring GEMHF, MFL had also acquired the Loans against Property (LAP) portfolio of GE Money Financial

Services Pvt Ltd (GEMFSPL) of which Rs.313.4 crore was transferred to GEMHF (now MHF).

Under the erstwhile promoters (GE group), GEMHF had stopped making disbursements from FY09 onwards due to

the group strategy to exit HFC business. The company commenced disbursements under the new management from

June, 2013. MHF is based out of New Delhi with its operation from the 77 branches of the existing network of MFL as

on June 30, 2014 spread across the country. During FY14, MHF had made disbursements of Rs.462.28 crore.



41

Brief Rationale

In FY14, MHF earned PAT of Rs.2.64 crore on total income of Rs.121.63 crore. Capital Adequacy Ratio was 22.28% as

on June 30, 2014. During Q1FY15, MHF earned a PAT of Rs.1.39 crore on total income of Rs.38.39 crore.

Analyst Contact

Name: Mamta Muklania Tel # 033-4018 1600 Mobile # 98304 07120 Email: [email protected]










42

Brief Rationale

October 10, 2014


Tata Services Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Short term Bank Facilities 8.00 CARE A1+

[A One Plus] Reaffirmed


Rating Rationale

The reaffirmation of rating assigned to the short term bank facilities of Tata Services Limited (TSL) reflects its

established track record, strong promoters and experienced management, favourable business risk profile

characterised by TSL’s strategic positioning within the Tata Group due to the nature of services provided to the

group. The rating continues to build in strong credit profile of the clientele it serves resulting in to very low

counterparty risk.

Any change in the credit risk profile of the group companies and change in composition of revenue mix l constitute


Background

Incorporated in 1957, Tata Services Limited was set up with an objective of providing the group companies

specialized services and the benefit of economies resulting from common facilities. Over the years, TSL has

become a valuable group resource with a growing recognition of its potential as the service arm of the group. TSL

administers a gamut of services ranging from the critical and high profile such as cross border M&A advisory to the

routine service such as management of IT and e-mail exchange.

In FY14, the company generated a total income of Rs.94.19 crores out of which 84% was generated from the

specialized services segment. The reported profit in FY14 was Rs. 01 crores.

Analyst Contact

Name: Mr. Dhaval Patel

Tel: 022 - 67543438












43

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to the bank facilities of Greenpark Hotels And Resorts Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from 48.50) CARE BBB+

(Triple B Plus) Reaffirmed

Short term Bank Facilities 2 CARE A2+

(A Two Plus) Reaffirmed


Rating Rationale

The rating continue to take into account the experience of the promoters, continued financial support extended by the promoters to GHRL, long and successful track record of operations of the company and established and centrally located hotel properties. The ratings also take into account increase in total income due to improvement in the occupancy rates across locations, improvement in the capital structure and debt coverage indicators in FY14 (refers to the period April 01 to March 31). The ratings, however, are constrained by the declining Average Room Rates (ARRs) leading to declining profitability margins over the years and modest hospitality industry scenario in the short to medium term period. The ability of the company to improve ARR and occupancy levels amidst the growing competition are the key rating sensitivities.

Background

GreenPark Hotels & Resorts Limited (GHRL) was incorporated in November 1986 as Diana Hotels Limited (DHL) and commenced business in February 1987. The company has changed its name to current nomenclature in June 2010. The company operates four 4-star hotels: Three under the name GreenPark, in Hyderabad, Chennai and Visakhapatnam and one under the name Marigold in Hyderabad with a total room inventory of 610 rooms. The company has also set up a restaurant at the Indian School of Business (ISB), Hyderabad since FY12. In addition, the company is also providing cleaning services for the Business school’s building and premises, engineering and maintenance service of its equipment. During FY14, GHRL achieved a total income of Rs.136.97 crore (FY13 – Rs.131.36) and PAT of Rs.5.23 crore (FY13 –

Rs.5.55 crore).

Analyst Contact

Name: Mr Vidhyasagar L.

Tel: +91-40 4010 2030












44

Brief Rationale

October 10, 2014


Sahara Housingfina Corporation Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term bank facilities 22.86

(reduced from 33.50) ‘CARE BB+’


Rating Rationale

The rating of Sahara Housingfina Corporation Ltd. (SHCL) continues to be constrained by the relatively small size of

asset base, geographical concentration of the loan book, high reliance on funds from the group, moderate asset

quality and strong competition from other housing finance companies (HFCs) & banks. The rating, however, draws

strength from low average ticket size of loans, improvement in interest spread & ROTA in FY14 (refers to the

period between April 01 to March 31) and comfortable liquidity profile & capital adequacy ratio. Improving

profitability and asset quality with increasing asset size amidst growing competition and continued financial

support from group along with ability to raise funds from alternate sources at optimum cost would remain the key

rating sensitivities.

Background

SHCL, incorporated in August 1991 as Livewell Home Finance Ltd., was taken over by the Sahara group in April 2002

and it commenced full-fledged operations under the new management in May 2004. In January 2005, the name of

the company was changed to its present name. Currently, SHCL is engaged in providing housing finance, mostly to

individuals, with focus primarily on salaried individuals. The company is registered with National Housing Bank (NHB)

as a non-deposit taking HFC.

SHCL is based in Kolkata with four Regional Offices (Kolkata, Hyderabad, Lucknow and Mumbai) apart from nine

branches operating in five states i.e. West Bengal (W.B), Andhra Pradesh (A.P), Uttar Pradesh (U.P), Maharashtra and

Jharkhand.

SHCL made disbursements of Rs.38.94 crore in FY14 (Rs.40.39 crore in FY13). During FY14, the company earned PAT

of Rs.2.65 crore (Rs.2.01 crore in FY13) on total income of Rs.21.11 crore (Rs.21.52 crore in FY13). Capital Adequacy

Ratio was comfortable at 48.44% as on March 31, 2014.

As per the unaudited working results for the quarter ended June 30, 2014, SHCL earned PAT of Rs.0.61 crore on total

income of Rs.4.89 crore.

Analyst Contact





45

Brief Rationale









46

Brief Rationale

October 10, 2014


Dynacons Systems And Solutions Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 13.26 (Reduced from

13.42)

CARE BB+ [Double B Plus]

Reaffirmed

Short-term Bank Facilities 4.89

(Enhanced from 3.50)

CARE A4+ (A Four Plus)

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Dynacons Systems & Solutions Limited (DSSL) continue to

be constrained by its relatively modest scale of operation, moderate profitability margins, working

capital intensive nature of operations resulting in high working capital utilization, moderately weak debt

coverage indicators and operations in highly fragmented and competitive industry.

The ratings derive strength from the experienced promoters, diversified services offered, healthy order

book position from reputed customer base and comfortable capital structure.

The ability of DSSL to scale up the operations along with improvement in the margins and efficient

management of working capital cycle remain the key rating sensitivities.

Background

Dynacons Solutions and Systems Limited (DSSL), incorporated in 1995, is engaged in providing IT

services, viz, System Integration (consisting of 42% of total income of FY14; refers to the period April 01

to March 31), IT infrastructure Management (consisting of 26% of total income of FY14), Networking

and Software solution services.

DSSL has tie-ups with major technology leaders namely IBM, Lenovo, Dell and Intel for procuring

hardware. DSSL has 450 employees with head quarters situated in Mumbai and branch offices at six

location across India and four offices globally. Furthermore in FY14 company has been awarded

Emerging IT Services Company award from CIO Choice and Data Centre Award from Schneider.

During FY14, DSSL reported total income of Rs.77.64 crore (vis-a-vis Rs.58.67 crore in FY13) and PAT of

Rs.0.58 crore (vis-a-vis Rs.0.52 crore in FY13). Further as per Q1FY15 results, the company has posted



47

Brief Rationale

total income of Rs.22.60 crore (vis-à-vis Rs.22.06 crore in Q1FY14) and PAT of Rs.0.16 crore (vis-à-vis PAT

of Rs.0.13 crore in Q1FY14). As on September 29, 2014, the company has an unexecuted order book of

Rs.79.90 crore.

Analyst Contact Name: Nitesh Dhoot Tel: 022- 6754 3442 Mobile: 9702961196 Email: [email protected]




Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors.


48

Brief Rationale

October 10, 2014


Schutz Dishman Biotech Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 0.30 CARE BBB [Triple B]

Reaffirmed

Short-term Bank Facilities 7.35 CARE A3+

[A Three Plus] Reaffirmed


Rating Rationale

The ratings of the Schutz Dishman Biotech Ltd (SDBL) continue to derive strength from vast experience of

promoters in the pharmaceutical industry, its established operation in manufacturing of chloride-based bulk drugs

and comfortable leverage and other debt coverage indicators.

The ratings are however; constrained on account of small scale operations with volatile profitability, low

capitalization, high geographical and product concentration risk and risk associated with fluctuations in foreign

exchange rate.

The increase in scale of operations coupled with ability of SDBL to diversify its revenue stream and thereby

reducing geographical and product concentration risk are the key rating sensitivities.

Background

SDBL was incorporated in 1995 as a private limited company and was subsequently converted into a public limited

company in 2005. SDBL is a 50:50 joint venture between Germany based Schutz & Co., GmBH (Schutz) and

Dishman Group based out of Ahmedabad where Dishman Pharmaceuticals and Chemicals Ltd. (DPCL; rated: CARE

BBB+ / CARE A3+) and its promoters jointly hold 50% equity stake.

SDBL is engaged in manufacturing and marketing of bulk drugs, fine chemicals and intermediates mainly for export

markets. SDBL’s products portfolio includes Chloride (CH) based bulk drugs which are used in anti bacterial, pain

killers and anti malarial drugs. SDBL largely exports its products to countries like Germany, Japan, Iran, South Africa

and New Zealand.

SDBL reported a net profit of Rs.1.75 crore on a total operating income of Rs.18.16 crore in FY14 (Audited; refers to

the period April 1 to March 31) as against a net profit of Rs.0.53 crore on a total operating income of Rs.16.89

crore in FY13 (audited).

Analyst Contact

Name: Mr. Krunal Modi

Tel: 079-4026 5614






49

Brief Rationale







50

Brief Rationale

October 10, 2014

CARE reaffirms rating assigned to the bank facilities of

Jalpa Diamond

Rating


Ratings1 Remarks

Short term Bank Facilities

19.00

CARE A4 [A Four]

Reaffirmed


The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm

at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by

the partners in addition to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Jalpa Diamond (Jalpa) continues to be constrained by its modest scale

of operations, moderate profitability margins, weak debt service indicators and elongated working capital cycle.

Further, the rating continues to be constrained by firm’s presence in a highly fragmented industry leading to

intense competition, customer and supplier concentration risk and its constitution as a partnership firm.

The ratings however, continue to derive strengths from the vast experience of partners in the diamond cutting and

polishing industry along with long track record of operations and comfortable capital structure.

The ability of Jalpa to improve its scale of operations along with efficient management of its working capital cycle

are the key rating sensitivities.

Background

Jalpa Diamond (Jalpa), a partnership firm is managed by five partners of the Jivani family. Jalpa is

primarily engaged in manufacturing and export of cut & polished diamonds. The firm has three plants

located at Surat and Bhavnagar, both in Gujarat.

Jalpa’s majority of the sales are generated from exports (91% in FY14 vis-a-vis 90% in FY13, FY refers to

period from April 1 to March 31) to Hong Kong, Belgium, U.A.E. and Thailand. Similarly, majority of the

raw material i.e. rough diamonds are procured through import (86% in FY14) mainly from countries like

Belgium and Dubai.



51

Brief Rationale

During FY14 (FY, refers to period April 1 to March 31), Jalpa posted total operating income of Rs.76.05

crore (vis-à-vis Rs.51.88 crore in FY13) and PAT of Rs.0.57 crore (vis-à-vis 0.53 crore in FY13).

Furthermore, during 5MFY15, Jalpa has reported total income of Rs.45 crore.

Analyst Contact

Name: Nitesh Dhoot Tel: 022- 6754 3442 Email: [email protected]











52

Brief Rationale

53

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to bank facilities of

JITF ESIPL CETP (Sitarganj) Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 3.45 CARE BBB (SO)

[(Triple B Structured Obligation)] Reaffirmed

Short term Bank Facilities 1.00 CARE A3 (SO)

[(A Three Structured Obligation)] Reaffirmed


*backed by unconditional and irrevocable corporate guarantee from JITF Water Infrastructure Ltd (JWIL).

Rating Rationale

The above mentioned ratings are based on credit enhancement in the form of unconditional and irrevocable

corporate guarantee provided by JITF Water Infrastructure Ltd (JWIL, rated CARE BBB).

The rating for bank facilities of JITF Water Infrastructure Limited (JWIL) continues to factor in the robust growth in

order book position and moderate capital structure. The rating also derives strength from the demonstrated

financial and operational support from the promoter group viz. P.R. Jindal group. The rating also takes cognizance

of the deterioration in financial performance during FY14 (refers to the period April 1 to March 31) owing to delay

in execution of projects. The rating strength is partially offset by JWIL’s limited track record of operations, slow

moving orders and the company’s working capital intensive nature of operations with build-up in receivables.

Going forward, JWIL’s ability to timely execute the orders while effectively managing its working capital cycle and

timely realization of receivables shall remain the key rating sensitivities.

Background of JECL

JITF ESIPL CETP (Sitarganj) Limited (JECL) is a Special Purpose Vehicle (SPV) which was incorporated as a 51:49 joint

venture between JWIL and Eldeco Sidcul Industrial Park Ltd. (ESIPL). JECL was incorporated to undertake the

construction of Common Effluent Treatment Plant (CETP) and Reverse Osmosis System (ROS) in Sitarganj,

Uttarakhand. The contract was awarded to JECL by ESIPL on build, own, operate and transfer (BOOT) basis.

The main objective of the SPV was to design, develop, construct, operate & maintain the CETP on (BOOT) basis in

the initial phase and to set up ROS at the CETP in the second phase pursuant to the terms of the CETP Concession

Agreement (for 30 years). It will provide services to the occupants of the industrial park pertaining to the

treatment and purification of liquid industrial waste/ effluents generated in the course of production,

manufacturing, spillage etc. Further, ESIPL is a SPV created by Eldeco Infrastructure & Properties Ltd (EIPL) and

State Industrial & Infrastructure Development Corporation of Uttaranchal Ltd (SIDCUL) to develop an industrial



54

Brief Rationale

park over an area of 1,100 acres, on a Public Private Partnership (PPP) basis in Sitarganj, Uttarakhand. EIPL holds

89% stake in ESIPL while SIDCUL holds the remaining 11%.

During FY14, (refers to the period April 1 to March 31), JECL reported a PBILDT of Rs.0.28crore and loss of

Rs.0.93crore at PAT level respectively on a total operating income of Rs.0.81crore.

Analyst Contact

Name: Mr. Sudhir Kumar

Tel: 011-45333232










55

Brief Rationale

October 10, 2014

CARE reaffirms rating assigned to enhanced amount of the bank facilities of

SKS Microfinance Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term/ Short-term Bank Facilities 2,500 (enhanced from

Rs.2,000 crore) CARE A+(Single A Plus)/ CARE A1+ (A One Plus)

Reaffirmed

Rating Rationale

The rating factors in the recent equity infusion and comfortable capitalization level of SKSMFL. The rating also

takes into consideration improvement in profitability, diversified resources profile, improving asset quality,

comfortable liquidity profile, experienced management team and geographically diversified loan portfolio. The

rating is, however, constrained by the susceptibility of the business to socio-political intervention and operational

risks due to high proportion of cash transactions. The capital adequacy, asset quality and profitability are the key


Background

SKSMFL was incorporated as SKS Microfinance Pvt Ltd (SKSMPL) on September 22, 2003 under the companies act,

1956. SKSMFL obtained certificate of registration from RBI on January 20, 2005 as NBFC-ND. In September 2005,

the company acquired business operations, assets and loan portfolio from SKS society (NGO) that was engaged in

microfinance activities since 1997. The name of the company was changed from SKSMPL to SKS Microfinance Ltd.

(Public Ltd Company) and obtained fresh certificate of registration from RBI in June 2009 for carrying on business

as NBFC-ND. SKSMFL got listed on BSE and NSE in August 2010. Furthermore, it got registered as NBFC – MFI (Non-

deposit taking) in November 2013.

As on March 31, 2014, SKSMFL operates in 15 states with 1,255 branches covering 49.63 lakh active borrowers

(both individual and group borrowers) with asset under management (AUM) of Rs.3,113 crore including managed

portfolio of Rs.1,392 crore.

Mr P H Ravi Kumar is the Non-executive Chairman of the company and is supported by Mr M R Rao, CEO &

Managing Director and Mr Dilli Raj, President.

During FY14 (refers to the period April 1 to March 31), SKSMFL reported PAT of Rs.69.85 crore on a total income of

Rs.544.83 crore. The total capital adequacy stood at 27.19% with a tangible net-worth of Rs.454.62 crore.

SKS Microfinance recently mobilised Rs.397.59 crore through qualified institutional placement (QIP) in May 2014.

The PAT for Q1FY15 stood at Rs.49.32 crore on total income of Rs.168.95 crore. The AUM stood at Rs.3,009.32

crore as on June 30, 2014.Total CAR was 39.60% at the end of Q1FY15.

For the detailed rationale of SKS Microfinance Ltd (SKSMFL), please refer to rationale published in July 2014 on

our website www.careratings.com.




56

Brief Rationale

Analyst Contact

Name: Mr Vishal Sanghavi

Tel: 022-6754 3430










57

Brief Rationale

October 10, 2014


Jewelex India Pvt Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Fund Based)

627.30*

(enhanced from Rs.585 crore)

CARE A2+



(Non-Fund Based) 6.00

CARE A2+



*The long term bank facilities have been reclassified into short term facilities.

Rating Rationale

The rating of Jewelex India Private Limited (JIPL) post-merger with its subsidiary Jewelex International Pvt Ltd in

FY14 (refers to the period between April 1 and March 31) continues to derive strength from healthy revenue

growth, its comfortable capital structure and debt coverage indicators, strong marketing network and diversified

clientele. The rating further gains from the experience of the promoters in the diamond industry and DTC

sightholder status.

The ratings are, however, constrained by JIPL’s long working capital cycle, the competitive nature of the Indian G&J

industry, susceptibility to volatile rough diamond prices and the prevalent challenging macroeconomic

environment in key G&J markets.

The ability of JIPL to maintain its profitability margins given the volatility in the prices of gold and rough diamonds

together with fluctuating foreign exchange rates and the continued economic uncertainty in key G&J markets


Background

Jewelex India Pvt. Ltd. (JIPL), originally known as P.D. Kothari & Co, was established in 1966 as a family run

partnership firm. It was converted into a private limited company in October 2004. JIPL is engaged in the business

of processing & trading of polishing diamonds of various sizes and shapes majorly ranging from 1cent to 1carat.

The company also undertakes manufacturing and export of diamond studded jewellery through its three jewellery

units located in SEEPZ Mumbai. JIPL is a DTC sight holder since 1971. Apart from DTC, the company procures

diamonds from the open markets in Antwerp and Dubai. The main export markets of JIPL include USA, Belgium,

Japan, Hong Kong and Dubai. Its sales mix in FY14 comprised diamonds (67%) and diamond studded jewellery

(28%) in terms of value.



58

Brief Rationale

As envisaged, in FY14, Jewelex India Pvt Ltd concluded the merger of its 100% owned subsidiary Jewelex

International Private Limited (JIEPL) with itself effective from April 01, 2013 as per the High Court order. JIEPL was

engaged in manufacturing and sale of diamond-studded jewellery in the domestic market.

In FY14, the company reported a PAT of Rs 75.22 crore (compared to a PAT of Rs 69.92 crore in FY13) on a total

income of Rs 1,981.74 crore (Rs 1,513.75 crore in FY13). Moreover, in Q1FY15 (UA) the company reported a PAT of

Rs 13.80 crore (Rs 11.04 crore in Q1FY14) on a total income of Rs 463.46 crore (Rs 377.03 crore in Q1FY14).

Analyst Contact

Name: Mr Ravi Kumar Dasari

Tel: 022-6754-3421











59

Brief Rationale

October 10, 2014

CARE revises the ratings assigned to the bank facilities of

Zuventus Healthcare Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from 43.75) CARE A+

[Single A Plus] Revised from CARE A-

[Single A Minus]

Short-term Bank Facilities 5 CARE A1 [A One]

Revised from CARE A2+ [A Two Plus]

Long-term/Short-term Bank Facilities

15 CARE A+/ CARE A1

[Single A Plus / A One]

Revised from CARE A-/ CARE A2+

[Single A Minus/ A Two Plus]


Rating Rationale

The revision in the ratings of the bank facilities of Zuventus Healthcare Limited (ZHL) takes into account

improvement in the consolidated financial risk profile of the Emcure group marked by growth in total operating

income and improvement in the capital structure. Furthermore, it also takes into account stabilization of

operations of the group companies in various geographies and increase in the number of USFDA approvals.

The ratings assigned continue to derive strength from experience and long track record of the promoters and

accredited manufacturing facilities along with diversified product portfolio with new launches and long-term

contracts with the pharmaceutical majors.

The ratings are, however, constrained by the intense competition in the generic formulations industry along with

regulatory risk inherent in the pharmaceutical industry. The ratings further take note of the proposed debt funded

capex and debt funded acquisition of a company in UK.

The ability of the group to further increase scale of operations by expanding its footprint in regulated markets and

therapeutic segment, improvement in the profitability margins, leverage and coverage indicators and efficient

management of working capital are the key rating sensitivity.

For this rating action, CARE has taken a consolidated view of the Emcure Group consisting of Emcure

Pharmaceuticals Limited and all its subsidiaries namely Zuventus Healthcare Limited, Gennova Biopharmaceuticals

Limited (GBL), Emcure Pharmaceuticals, USA (Emcure USA), Inc, Heritage Pharma Holdings Inc., Emcure Pharma UK

Limited, Emcure Pharmaceuticals Singapore PTE Limited, Emcure Brasil farmaceutica Ltda, Emcure Pharmaceuticals

South Africa (Pty) Limited, Emcure Pharmaceuticals Mena FZ LLC., Emcure Uth Healthcare Limited, Emcure Nigeria



60

Brief Rationale

Limited. A consolidated view is considered on account of significant inter-company transactions and EPL’s

exposure to group companies in the form of corporate guarantee.

Background

ZHL was incorporated in May 27, 2002, as a public limited company through a joint venture between Emcure

Pharmaceuticals Limited (EPL; rated ‘CARE AA-’, ‘CARE A1+’ in September 2014) and the individual promoters (Mr

Prakash Kumar Guha, Mr CV Shetty and Mr S Balasubramanium). ZHL is a part of the Emcure group based out of

Pune. EPL, the flagship company of the group holds 79.58% stake in ZHL. ZHL sells its own brand of pharmaceutical

products in the domestic market by largely outsourcing its manufacturing activities to third party contract

manufacturers either on Loan License (LL) basis or Principal to Principal (P2P) basis. ZHL has set up a manufacturing

plant at Jammu, which commenced commercial operations in July 2011 for manufacture of formulations. The plant

at Jammu has an installed capacity of 36 million numbers per annum for tablets, 1.8 million kg per annum for dry

powder suspension and 15.3 million numbers per annum for vials.

ZHL is managed by a six-member Board with Mr Satish Mehta, being the Chairman, and Mr P.K. Guha, the

Managing Director.

ZHL is a part of Emcure group is vertically-integrated with major thrust on manufacturing and marketing of

formulations (own brands) as well as APIs, Contract Research and Manufacturing Services (CRAMS) and R&D

activity. The group’s braded formulation business caters to the regulated as well as the semi regulated markets.

The group has presence in most of the chronic therapeutic segments such as Cardiology, Nephrology, Anti-HIV, and

Neurology and also has presence in acute segments such as Anti-infective, Pain Management, Dermatology,

Gynecology and Pediatrics.

Emcure as a group consists of eleven direct subsidiaries and four indirect (step down) subsidiaries of EPL located at

various regulated and emerging markets including USA, UK, Dubai, Nigeria, Brazil, South Africa, Singapore, Turkey

and Canada. The stake held by the private equity firm, Blackstone Partner’s Mauritius of 13.09% in EPL was taken

over by B.C Investments IV Limited (Bain Capital) during April 2014.

For FY14 (refers to the period April 1 to March 31), the Emcure group’s consolidated total income stood at

Rs.2906.00 crore and a PAT of Rs.267.94 crore against a total income of Rs.2070.73 crore and a PAT of Rs.90.44

crore in FY13. The standalone total income of ZHL stood at Rs.450.23 crore and a PAT of Rs.21.88 crore during

FY14.

During Q1FY15 (provisional) (refers to the period April 1 to June 30), the group achieved a total income of

Rs.1026.75 crore with a PBT of Rs.153.82 crore.

Analyst Contact

Name: Leena Marne

Tel: 020-40009019


61

Brief Rationale









62

Brief Rationale

October 10, 2014


Emcure Pharmaceuticals Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 507.89 CARE AA-

(Double A Minus) Revised from CARE A+

[Single A Plus]


[A One Plus] Revised from CARE A1

[A One]


313.00 CARE AA-/ CARE A1+

[Double A Minus/ A One Plus]

Revised from CARE A+/CARE A1

[Single A Plus/A One]


Rating Rationale The revision in the ratings of bank facilities of Emcure Pharmaceuticals Limited (EPL) takes into account improvement in the consolidated financial risk profile of the Emcure group marked by growth in total operating income and improvement in the capital structure. Furthermore, it also takes into account the stabilization of operations of the group companies in various geographies and increase in the number of USFDA approvals.

The ratings assigned continue to derive strength from experience and long track record of the promoters and accredited manufacturing facilities along with diversified product portfolio with new launches and long-term contracts with the pharmaceutical majors.

The ratings are, however, constrained by the intense competition in the generic formulations industry along with regulatory risk inherent in the pharmaceutical industry. The ratings further take a note of the proposed debt funded capex and debt funded acquisition of a company in UK.

The ability of the group to further increase its scale of operations by expanding its footprint in regulated markets and therapeutic segment, improvement in the profitability margins, leverage and coverage indicators and efficient management of working capital are the key rating sensitivities.

For this rating action, CARE has taken a consolidated view of the Emcure Group consisting of EPL and all its subsidiaries, namely, Gennova Biopharmaceuticals Limited (GBL), Zuventus Healthcare Limited, Emcure Pharmaceuticals USA Inc (Emcure USA), Heritage Pharma Holdings Inc, Emcure Pharma UK Limited, Emcure Pharmaceuticals Singapore PTE Limited, Emcure Brasil farmaceutica Ltd, Emcure Pharmaceuticals South Africa (Pty) Limited, Emcure Pharmaceuticals Mena FZ LLC, Emcure Uth Healthcare Limited, Emcure Nigeria Limited. A consolidated view is considered on account of significant inter-company transactions and EPL’s exposure to group companies in the form of corporate guarantee. Background EPL, incorporated in April 1981, by Mr Satish Mehta, is engaged in the manufacturing of formulations and Active Pharma Ingredients (APIs). The company has five manufacturing facilities in Pune and one in Jammu. These facilities are accredited by regulatory authorities such as US Food and Drug Administration (USFDA), Therapeutic Goods Administration (TGA) - Australia, Canada Food & Drug Administration, etc. and are also compliant with the Current Good Manufacturing Practices (CGMP). Furthermore, the company has four dedicated Research and Development (R&D) facilities for APIs and formulations.



63

Brief Rationale

The group is vertically-integrated with major thrust on manufacturing and marketing of formulations (own brands) as well as APIs, Contract Research and Manufacturing Services (CRAMS) and R&D activity. The group’s braded formulation business caters to the regulated as well as the semi regulated markets. The group has presence in most of the chronic therapeutic segments such as Cardiology, Nephrology, Anti-HIV, and Neurology and also has presence in acute segments such as Anti-infective, Pain Management, Dermatology, Gynecology and Pediatrics. On April 29, 2011, EPL acquired HPI (Heritage Pharmaceuticals Inc) through its subsidiary Emcure Pharmaceuticals Holding USA (Emcure Holdings). The acquisition was through a reverse merger of Emcure Holdings and Heritage Pharma Holdings Inc (holding company of HPI). Also, during November 2012, EPL acquired worldwide rights of ‘BICNU’, a branded oncology product from Bristol Myers Squibb (BMS), a US-based company for around Rs.55 crore. During April 2014, the group acquired a marketing company named Tillomed Holdings Limited in U.K along with its subsidiary Tillomed Laboratories Limited for an acquisition price of GBP 8.7 million. The acquired company will operate as a subsidiary of Emcure Pharma, UK. Emcure as a group consists of eleven direct subsidiaries and four indirect (step down) subsidiaries of EPL located at various regulated and emerging markets including USA, UK, Dubai, Nigeria, Brazil, South Africa, Singapore, Turkey and Canada. The stake held by the private equity firm, Blackstone Partner’s Mauritius of 13.09% in EPL was taken over by B.C Investments IV Limited (Bain Capital) during April 2014. For FY14 (refers to the period April 1 to March 31), the Emcure group’s consolidated total income stood at Rs.2,906 crore and a PAT of Rs.267.94 crore against a total income of Rs.2,070.73 crore and a PAT of Rs.90.44 crore in FY13. The standalone total income of EPL stood at Rs.1,647.23 crore and a PAT of Rs.174.43 crore during FY14. During Q1FY15 (provisional), the group has achieved a total income of Rs.1,026.75 crore with a PBT of Rs.153.82 crore.

Analyst Contact

Name: Leena Marne

Tel: 020-40009019










64

Brief Rationale

October 10, 2014


Dishman FZE Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from Rs.89.40 crore)

CARE BBB+ (SO) [Triple B Plus (Structured

Obligation)]

Revised from CARE BBB (SO) [Triple B


Total Facilities @ 79.39

@ Backed by corporate guarantee extended by Dishman Pharmaceuticals and Chemicals Ltd (DPCL; rated CARE

BBB+ / CARE A3+)

Rating Rationale

The ratings assigned to the bank facilities of Dishman FZE (DFZE) takes into the unconditional and irrevocable

corporate guarantee extended by Dishman Pharmaceuticals and Chemicals Limited (DPCL; rated CARE BBB+ / CARE

A3+). Further, the revision in rating of DFZE follows the similar revision in the ratings of DPCL.

The revision in ratings of DPCL takes in account consistent growth in total operating income and improving

profitability and cash accruals on the back of improvement in operational and financial performance of one of its

key subsidiaries, Carbogen Amcis (CA).

Further, the ratings continue to derive strength from DPCL’s experienced management, its established presence in

the Contract Research and Manufacturing Service (CRAMS) segment of the pharmaceutical industry with the

manufacturing facilities compliant for the regulated markets, clientele consisting of leading global generic as well

as innovator pharmaceutical companies and favourable industry scenario for CRAMS segment in India.

The ratings, however, continue to be constrained on account of continued under-utilisation of its newly

commenced manufacturing facilities in India as well as China leading to lower-than-envisaged cash generation and

high debt level. The ratings are further constrained by higher propensity of DPCL to support its subsidiaries and

group companies operations and foreign exchange fluctuation risk on account of multi-country operations.

The ability of DPCL to improve the capacity utilisation of its newly commenced manufacturing facilities, liquidation

of certain non-remunerative assets leading to rationalisation of debt level and effective management of foreign

exchange fluctuations risk are the key rating sensitivities.

Background

Incorporated in July, 2004 and based out of Dubai, DFZE is an erstwhile wholly owned subsidiary of DPCL, Dishman

Group based out of Ahmedabad. During March 31, 2012, DPCL has divested its 100% shareholding in DFZE to Nami

Trading FZ LLC, a UAE based company. However, DPCL continued its corporate guarantee for the term loan availed

by DFZE.

In November 2007, DFZE and Dishman Netherlands B.V. (DNBV) jointly took over a part of the business of Solvay

Pharmaceuticals B.V. (Solvay), particularly Vitamin and Cholesterol businesses. Out of the said business, DFZE took

over the intellectual property (IP) rights of one specific Vitamin D3 compound. Prior to the takeover of Solvay

businesses, Solvay supplied this compound to Galderma S.A. (Galderma). Post takeover, DFZE supplies this



65

Brief Rationale

compound to Galderma through its manufacturing subsidiary DNBV and gets royalty payment from Galderma in

addition to the income from sale of the compound.

Further, DFZE had recently completed project for up gradation of the existing technology to ensure the stability in

future royalty income. The total project cost was USD $ 18 million which was funded through the term loan of US $

15 million.

DFZE reported a net profit of AED (UAE Dirham) 1.78 million on a total operating income of AED 7.82 million in

FY14 (Audited; refers to the period April 1 to March 31) as against a net profit of AED 7.86 million on a total

operating income of AED 15.48 million in FY13 (audited).

About DPCL; Guarantor

DPCL, incorporated in 1983, is a research-driven pharmaceutical company promoted by Mr. Janmejay Vyas and his

family. DPCL is primarily engaged in CRAMS and manufacturing of Active Pharmaceutical Ingredient (API). DPCL

offers range of antiseptics and disinfectants and other Vitamins. During the past few years, DPCL has grown

inorganically through acquisition of companies based in Europe and organically through expansion of its API

manufacturing capacity in India. These include debt funded acquisition of 100% stake in CA in FY07 (refers to

period April 1 to March 31), a Swiss-based company having high-end contract research capabilities and Vitamin-D

business from Solvay Pharmaceuticals BV with its plant in the Netherlands in FY09. DPCL had also set up

manufacturing facilities in China which commenced its operations in FY13.

On a consolidated level, DPCL reported a net profit of Rs.109 crore on a total operating income of Rs.1,410 crore in

FY14 (Audited) as against a net profit of Rs.100 crore on a total operating income of Rs.1,288 crore in FY13.

Further, during Q1FY15, DPCL reported a total operating income of Rs.363 crore and PAT of Rs.24 crore on a

consolidated basis.

Analyst Contact


Tel: 079-4026 5614










66

Brief Rationale

October 10, 2014

CARE revises ratings assigned to bank facilities AND NCD of

Dishman Pharmaceuticals And Chemicals Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from Rs.224.97 crore)

CARE BBB+ [Triple B Plus]

Revised from CARE BBB [Triple B]

Long-term / Short-term Bank Facilities

91.36 (enhanced from Rs.71.61 crore)

CARE BBB+ / CARE A3+ [Triple B Plus / A Three Plus]

Revised from CARE BBB / CARE A3

[Triple B / A Three]



CARE A3+ [A Three Plus]

Revised from CARE A3 [A Three]


Non Convertible Debentures 97.50

(reduced from Rs.150 crore)



Rating Rationale

The revision in ratings of the Dishman Pharmaceuticals and Chemicals Ltd (DPCL) takes in account consistent

growth in total operating income and improving profitability and cash accruals on the back of improvement in

operational and financial performance of one of its key subsidiaries, Carbogen Amcis (CA).

Further, the ratings continue to derive strength from DPCL’s experienced management, its established presence in

the Contract Research and Manufacturing Service (CRAMS) segment of the pharmaceutical industry with the

manufacturing facilities compliant for the regulated markets, clientele consisting of leading global generic as well

as innovator pharmaceutical companies and favourable industry scenario for CRAMS segment in India.

The ratings, however, continue to be constrained on account of continued under-utilisation of its newly

commenced manufacturing facilities in India as well as China leading to lower-than-envisaged cash generation and

high debt level. The ratings are further constrained by higher propensity of DPCL to support its subsidiaries and

group companies operations and foreign exchange fluctuation risk on account of multi-country operations.

The ability of DPCL to improve the capacity utilisation of its newly commenced manufacturing facilities, liquidation

of certain non-remunerative assets leading to rationalisation of debt level and effective management of foreign

exchange fluctuations risk are the key rating sensitivities.

Background

DPCL, incorporated in 1983, is a research-driven pharmaceutical company promoted by Mr. Janmejay Vyas and his

family. DPCL is primarily engaged in CRAMS and manufacturing of Active Pharmaceutical Ingredient (API). DPCL

offers range of antiseptics and disinfectants and other Vitamins. During the past few years, DPCL has grown

inorganically through acquisition of companies based in Europe and organically through expansion of its API

manufacturing capacity in India. These include debt funded acquisition of 100% stake in CA in FY07 (refers to

period April 1 to March 31), a Swiss-based company having high-end contract research capabilities and Vitamin-D



67

Brief Rationale

business from Solvay Pharmaceuticals BV with its plant in the Netherlands in FY09. DPCL had also set up

manufacturing facilities in China which commenced its operations in FY13.

On a consolidated level, DPCL reported a net profit of Rs.109 crore on a total operating income of Rs.1,410 crore in

FY14 (Audited; refers to the period April 1 to March 31) as against a net profit of Rs.100 crore on a total operating

income of Rs.1,288 crore in FY13.

Further, during Q1FY15, DPCL reported a total operating income of Rs.363 crore and PAT of Rs.24 crore on a

consolidated basis.

Analyst Contact


Tel: 079-4026 5614










68

Brief Rationale

October 10, 2014

CARE revises rating assigned to the bank facilities of

Sim Diam Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities (Fund-based)

160 CARE BB

[Double B] Revised from CARE BB+ [Double B Plus]


Rating Rationale

The revision in the rating assigned to the bank facilities of Sim Diam Pvt Ltd (SDPL) takes into account delays in

realisation of export bills in the past, deterioration in the capital structure characterised by high utilisation of

working capital based bank borrowings and elongation in working capital cycle owing to higher inventory holding

period. Furthermore, the rating continues to be constrained by SDPL’s thin profitability margins arising from

volatility in the prices of rough diamonds and forex movements, client concentration and intense competition from

organised and unorganised players in the Gems &Jewellery industry.

However, the rating derives strength from extensive experience of the promoters in the G&J industry, Diamond

Trading Company (DTC)sightholder and growth in operations during FY14 (refers to the period April 01 to March

31).

The ability of the company to scale up its operations and improve its profit margins while enhancing its capital

structure by effectively managing its working capital utilization constitute the key rating sensitivities.

Background

Sim Diam Private Ltd. (SDPL) was established as a partnership firm in 1998 under the name of M/S Sim

Diamonds with Mr Fatehchand Ratanlal Sethia and Mr. Roshan Fatehchand Sethia as the partners of the

firm. Later, in 2006, it was transformed into a private limited company under the present name with the

partners of the erstwhile partnership firm along with other family members becoming the directors in

the company resulting it into a family owned entity.

Presently, SDPL is engaged in the business of trading and manufacturing of Cut and Polished (C&P)

diamonds ranging from 30 cents to 2 carat of various sizes, shapes and grades. The company does not

have a processing unit of its own but gets the cutting and polishing of diamond done on job-work basis

from Sim Manufacturing, Dahisar (E) Mumbai, a partnership firm and a related entity. Further, in FY14,

the company has entered into a new arrangement with another processor Sim Gems Manufacturers LLP



69

Brief Rationale

(SGML), another related entity, wherein the machineries are installed by SDPL and SGML does cutting

and polishing of diamonds on job-work basis. This processing unit is located at Chappi, Gujarat. The

company is predominantly an exporter with around 86% (68% in FY13) of total sales in FY14 being

generated mainly from international markets such as Israel, USA and Hong Kong. SDPL has attained the

status of DTC sight holder in April 2012 through Niru Diamonds (Israel) another related entity and

procures roughs from these sights.

In FY14, the company reported a PAT of Rs 5.93 crore (compared with a PAT of Rs 4.48crore in FY13) on

a total income of Rs 332.82 crore (Rs 257.32 crore in FY13).

Analyst Contact

Name: Mr. Ravi.kumar Dasari

Tel: 022-67543421










70

Brief Rationale

October 10, 2014

CARE reaffirms the ratings of bank facilities of Mahindra & Mahindra Limited post announcement of proposed acquisition of Peugeot Motocycles

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 178.28 CARE AAA (Triple A)

Reaffirmed


(A One Plus) Reaffirmed


Rating Rationale

CARE reaffirmed the credit ratings of bank facilities of Mahindra & Mahindra Ltd (M&M) post M&M’s

announcement of proposal to acquire 51% stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA

Group based in France, through its subsidiary, Mahindra Two Wheelers Ltd. (MTWL).

The total consideration expected to be paid for this acquisition is Euro 28 million. The size of the acquisition

remains relatively small as compared to overall size of M&M. The acquisition is likely to help M&M in increasing its

global footprint in the two-wheeler segment and diversifying the brand and product offerings.

For detailed rating rationale please refer to the M&M rationale dated August 28, 2014 on our website.

Analyst Contact

Name: Mr. Dhaval Patel

Tel: +91- 22-6754 3438












71

Brief Rationale

October 10, 2014

CARE suspends the ratings assigned to the bank facilities of

GNB Motors Pvt Ltd

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of GNB Motors Pvt Ltd. The

ratings have been suspended as the company has not furnished the information required by CARE for monitoring

of the ratings.

Analyst Contact

Name: Mr Chandan Agarwal

Tel: 033 40181638

Mobile: +91 9883126457











72

Brief Rationale

October 09, 2014

CARE assigns ‘CARE BBB-’ AND ‘CARE A3’ to the bank facilities of

Krishnapatnam Port Company Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 5,216.57

CARE BBB-

(Triple B Minus)

Assigned

Long-term/Short-term Bank Facilities 260.00

CARE BBB-/CARE A3

(Triple B Minus/A Three)

Assigned

TOTAL 5,476.57

Rating Rationale

The ratings assigned to the bank facilities of Krishnapatnam Port Company Limited (KPCL) derive strength from

promoter’s experience in infrastructure sector, satisfactory track record of port operations, enhanced operational

efficiency owing to single-window clearance model, autonomy to the port in setting the tariff, significant

infrastructure availability including partially mechanized cargo handling systems with ability to handle large

vessels, strong demand potential in hinterland for bulk and container cargo and increasing scale of operations. The

rating also factors in the healthy growth in total income during FY14 (refers to the period April 01 to March 31) and

healthy operating profit. However, the ratings are constrained by high gearing levels and tight liquidity position on

account of large debt funded capex, concentration of coal cargo and competition from other ports on the east

coast. Timely commencement of operations of upcoming power projects in the vicinity of the port and

improvement in the financial and operational risk profile are the key rating sensitivities.

Background

Krishnapatnam Port Company Limited (KPCL), incorporated on March 15, 1996 is a Special Purpose Vehicle (SPV)

belonging to CVR Navayuga Group. The SPV entered into a Concession Agreement (CA) with Government of

Andhra Pradesh (GoAP) in January 1997 for developing the existing minor port into modern, deep water and high

productivity port at Krishnapatnam, AP on Built, Operate, Share and Transfer (BOST) basis for a concession period

of 30 years, extendable by another 20 years at the option of KPCL, provided KPCL has developed the port assets as

per the Detailed Project Report (DPR) and has met the performance standards as set out in the CA. Navayuga

group holds majority stake and management control in the company.

The port is being developed in multiple phases. KPCL completed the implementation of phase-I of the project and

commenced operations on March 20, 2009. The total port handling capacity under phase-I is 20 MTPA. Phase-IA

added a coal import berth, associated equipment and stockyard and included additional dredging to deepen and

widen the entrance channels, turning basin and berth pockets to allow entry to ships of up to 105,000 DWT.



73

Brief Rationale

Capital outlay for phase I and phase I-A post refinancing was Rs. 1183.50 Cr funded by debt of Rs. 900 Cr and

balance Rs. 283.50 Cr through equity.

Phase-II including extension has been developed at total project cost of Rs. 4923.19 cr which was funded by way of

equity/internal accruals to the tune of Rs. 1076.64 cr and balance by way of debt. KPCL achieved COD for Phase II

on Dec. 31, 2013. However, there are some parts of work which are pending (concrete paving works, deck slab of

sixth berth, conveyor system for coal wagon loading, equipment commissioning, etc.), which are expected to be

completed by Q3FY15. This part, KPCL has also created additional infrastructure for support facilities, equipment

for alternate cargo etc. for which the company has availed additional debt.

During FY14, KPCL registered net sales of Rs.1,179.06 crore (Rs.955.33 crore in FY13) with PAT of Rs.82.05

crore(Rs.231.07crore in FY13).

Analyst Contact

Name: Mr. Vidhyasagar L

Tel: +91 40102030













factors.


74

Brief Rationale

October 09, 2014

CARE assigns ‘CARE BB-’ rating to the bank facilities of

Tegan Texofab Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 24.75 CARE BB-

(Double B Minus) Assigned

Rating Rationale

The rating assigned to the bank facilities of Tegan Texofab Pvt Ltd (TTPL) is primarily constrained due to the

nascent stage of implementation of its envisaged green field project to set-up manufacturing facility for PU

(polyurethane) coated fabrics & PVC laminated textile fabric at Surat. The rating is further constrained on account

of highly fragmented nature of the industry; risk associated with volatile raw material prices and foreign exchange

fluctuations.

The rating, however, favourably takes into account the vast experience of its promoters in varied businesses along

with favourable demand scenario and incentives available through various government schemes.

The ability of TTPL to complete the project within envisaged time and cost parameters and achieve the envisaged

scale of operations and profitability would be the key rating sensitivities.

Background

Incorporated in December 2013, TTPL is a private limited company promoted by Mr Narendra Kothari, Mr Sanjeev

Kumar Mundhra, Mr Rohit Seth and Mr Manish Dudhani.

TTPL is setting up a green field project for manufacturing of Coated & Laminated Fabrics i.e. PU Coated Fabrics &

PVC Laminated Fabrics at Surat, Gujarat. The product finds application in manufacturing of luggage bags, rucksack,

jackets, purses, car and automobile covers, tent covers etc. Planned capacity in this project is 172.80 lac sq. meters

per annum for PVC laminated fabric and PU coated fabric each. The project cost is estimated at Rs.32.96 crore

(including land, building, plant & machinery, preliminary & pre-operative expenses and margin money for working

capital) with a proposed debt-equity ratio of 1.59:1. Financial closure for the project is yet to be achieved. The

project is expected to be completed by March 2015 and the plant is expected to be operational from April 2015.

Analyst Contact

Name: Vishal Joshi Tel: 079-40265656 Email: [email protected]





75

Brief Rationale






amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is

based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may

undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the

financial performance and other relevant factors

76

Brief Rationale

October 09, 2014

CARE assigns ‘CARE BB+’ rating to the NCD of

Sterling Gated Community Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Proposed Non-Convertible Debentures (NCDs)

60 CARE BB+ [Double B plus]

Assigned

Total Facilities 60

Rating Rationale

The rating assigned to the proposed NCDs of Sterling Gated Community Pvt Ltd (SGCPL) are tempered by high

project execution risk as the project is at a very nascent stage, apart from moderate dependency on customer

advances.

The rating, however, derives strength from the promoter’s extensive experience in the real estate industry and

favorable location of the project.

The ability of the company to obtain requisite approvals on-time and mobilize the required customer advances for

the project constitute the key rating sensitivities.

Background

Sterling Gated Community Pvt Ltd. is a special purpose vehicle (SPV) formed by Mr Ramani Sastri and Mr Shankar

Sastri, who have more than 30 years of experience in developing real estate projects in Bangalore and are the

founders of Sterling group.

SGPCL is developing a real estate apartment project in Whitefield, Bangalore. The project is a residential project

with total 147 units of 3-BHK and 4-BHK configurations, planned over a part of larger land parcel owned by SGPCL’s

associate company, Sterling Urban development Pvt Ltd (SUDPL). The project, which is in a pre-approval stage, is a

Joint Development with SUDPL as the land owner (25% share in total revenue) and with SGCPL as the developer

(75% share in total revenue). The remaining land of SUDPL is being developed as Villa Grande project comprising of

total 243 villas with Phase-I completed and Phase-II ongoing.

Analyst Contact

Name: Sharmila Jain

Tel: 022-67543638







77

Brief Rationale







78

Brief Rationale

October 09, 2014

CARE assigns CARE BBB-/CARE A3 ratings to the bank facilities of

Hira Concast Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 37.22 CARE BBB- (Triple B Minus) Assigned

Short-term Bank Facilities 24.05 CARE A3 (A Three) Assigned

Total 61.27

Rating Rationale

The ratings draw support from experience of the promoters and locational advantage of its plants, improving

gearing ratios & satisfactory debt protection metrics and moderate capacity utilization. The ratings, however, are

constrained by the short track record in manufacturing operation, low profitability and working capital intensive

nature of operations, volatility in the prices of raw materials and finished goods, dependence of the business on

the cyclical steel industry along with increasing competition from the unorganized sector.

The ability of the company to increase its scale of operations and thereby improve its profitability, improve its

working capital management, future trend in key raw material prices and outlook for steel industry., would remain

the key rating sensitivities.

Background

Hira Concast Ltd (HCL), incorporated in 2005, is part of the VHP group belonging to Shri Vijay Kumar Patni. The

company commenced production of ingot in April, 2007, with an installed capacity of 53,000 TPA at Burdwan,

West Bengal, ferro alloys unit with a capacity of 12,810 TPA (7.5MVA) in February, 2010 and a second unit with a

capacity of 9,280TPA (5.5MVA) in March, 2014 at its existing premises. The company is also engaged in trading of

iron & steel & mineral products (18.47% of the total sales in FY14).

In FY14, HCL earned a PAT of Rs.3.3 crore (FY13 – Rs.2.9 crore) on a total income of Rs.183.3 crore (FY13- Rs.172.1

crore).

Analyst Contact


Tel: 033 4018 1609






79

Brief Rationale










factors.

80

Brief Rationale

October 09, 2014

CARE assigns “CARE BB” and “CARE A4” ratings to the bank facilities of

Woolways India Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 37.85 CARE BB

(Double B) Assigned

Short term Bank Facilities (Cash Credit) 2.15 CARE A4 (A Four)

Assigned


Rating Rationale

The ratings assigned to the bank facilities of the company are constrained by its moderate financial risk profile

marked by low profitability margins and moderate debt coverage indicators, susceptibility to raw material and

foreign exchange fluctuations and high competition from the organized and unorganized players. The ratings,

however, derive comfort from the past experience and resourcefulness of the promoters, established UNIKID

brand of the company, diversified product portfolio and diversified distribution and revenue streams. The ability of

the company to profitably scale up its operations with improvement in profitability margins and management of

working capital will remain the key rating sensitivities.

Background

Woolways India Limited (WIL) is a closely held public limited company engaged in the manufacturing and sales of

hosiery knitwear and garments including children apparel, men apparel, women apparel, thermal wear, t-shirts

and inner-wear. The company has two manufacturing facilities in Ludhiana, Punjab and has a presence in both

domestic and international markets (government-recognized Start Export House).

Woolways India Ltd registered a total operating income of Rs.257.70 crore during FY14 (refers to the period April 1

to March 31) with a PBILDT and PAT of Rs.7.64 crore and Rs.1.62 crore respectively as against a total operating

income of Rs.221.36 crore with PBILDT and PAT of Rs.7.08 crore and Rs.1.23 crore respectively in FY13.

Analyst Contact Name: Sajan Goyal Tel: 0172-5171100 Mobile: 9988805650 Email: [email protected]






81

Brief Rationale







82

Brief Rationale

October 09, 2014

CARE assigns ‘CARE B+’ and ‘CARE A4’ ratings to the bank facilities of

Bhagawati Estate Warehouse (Ashoknagar) Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 4.76 CARE B+

(Single B Plus) Assigned

Short-term Bank Facilities 1.60 CARE A4 (A Four)

Assigned

Total 6.36

Rating Rationale

The ratings assigned to the bank facilities of Bhagawati Estate Warehouse (Ashoknagar) [BEW (A)] are primarily

constrained on account of its limited track record with modest scale of operations in competitive warehousing and

agro commodity business, its constitution as a proprietorship firm and weak financial risk profile marked by

leveraged capital structure, weak debt coverage and liquidity indicators.

However, the ratings derive strength from the wide experience of the promoter and established presence of the

group in various business segments within Madhya Pradesh (MP).

The ability of BEW (A) to increase its scale of operations, maintain its profitability and improvement in capital

structure along with efficient working capital management in light of the competitive nature of industry are the


Background

BEW (A)] was formed as a proprietorship firm in May 2011 by Mr Vikram Singh to undertake the business of

warehousing and trading of agro-commodities like potatoes and wheat. The firm has two warehouses having an

aggregate storage capacity of 10,000 metric tonne (MT) at Ashok Nagar in Gwalior district of Madhya Pradesh.

BEW (A) has a number of associate concerns namely Bhagawati Development Services Private Limited (BDSPL –

rated CARE B+/ CARE A4) and Bhagawati Cools Private Limited (BCPL – rated CARE BB-/CARE A4) which are

engaged in similar line of business and also have distributorship of Indo Farm tractors and Mahindra and Mahindra

(M&M) tractors respectively in Madhya Pradesh. Another associate, Bhagawati Estate Warehouse, Kolaras (BEWK-

rated CARE B+/CARE A4) is a proprietorship firm owned by Mrs. Lata Singh, w/o Mr. Vikram Singh, is also engaged

in warehousing and trading of agro commodities. However, the day-to-day operations are looked after by Mr

Vikram Singh.



83

Brief Rationale

The group incorporated Bhagawati India Motorizer Private Limited (BIMPL- rated CARE B+) in October 2013 to take

up the dealership of Mahindra & Mahindra (M&M) vehicles and servicing of auto parts in four districts of Madhya

Pradesh (MP) namely Shahdol, Mandla, Dindori and Anuppur.

During FY14 (provisional; refers to the period April 1 to March 31), BEW (A) reported a PAT of Rs.0.05 crore on a

total operating income (TOI) of Rs.3.07 crore as against PAT of Rs.0.07 crore on a TOI of Rs.1.38 crore in FY13.

Analyst Contact

Name: Mohit Agrawal Tel: (079) 40265612 Mobile: +91-85111 90083 Email: [email protected]










84

Brief Rationale

October 09, 2014

CARE assigns ‘CARE BB+’ rating to the proposed ncd issue of

North Star Apartments Private Limited

Ratings

Instruments Amount

(Rs. crore) Ratings

1 Remarks

Non-convertible

Debentures (NCDs) 125.40

CARE BB+

[Double B Plus] Assigned

Rating Rationale

The rating assigned to the proposed NCD issue of North Star Apartments Private Limited (NSAPL) is constrained by

the initial stage of its ongoing projects leading to execution and offtake risk, high dependence on customer

advances for project funding, geographical concentration of the projects besides inherent risks associated with the

real estate industry. The rating however derives strength from the presence of escrow mechanism for principal

repayment and interest servicing of the rated NCDs. The rating also derives strength from the experienced

promoters with their established sales and delivery track record, favourable location of the projects and

reasonable booking status for all the ongoing projects.

Going forward, the timely execution and saleability of the projects and timely recovery of sales receipts/advances

from the customers would be the key rating sensitivities.

Background

Incorporated in 1993, North Star Apartments Private Limited (NSAPL) is engaged in the development of residential

and commercial real estate projects in Delhi NCR. NASPL is the flagship company of the Gurgaon based ‘SS Group’.

The group is currently developing three residential/group housing projects and one commercial project involving

development of about 43.56 lakh sq. ft of saleable area in Gurgaon. NASPL is developing two residential projects

“The Hibiscus” in Sector 50, Gurgaon and “The Coralwood & Almeria” in Sector-84, Gurgaon and a commercial

project “SS Omnia” at Sector-86, Gurgaon. Another residential real estate project “SS Leaf” is being developed

under SS Group Pvt Ltd(wholly owned subsidiary of NSAPL).

During FY13 (refers to the period April 01 to March 31), NSAPL achieved a PAT of Rs.24.44 crore on a total income

of Rs.156.03 crore. As per the provisional results for FY14, the company had achieved PAT of Rs.30.50 crore on a

total income of Rs.135.47 crore.



85

Brief Rationale

Analyst Contact

Name: Gaurav Dixit

Tel: 011-45333235











86

Brief Rationale

October 09, 2014

CARE reaffirms the ratings assigned to various bank facilities of

G R Infraprojects Limited

Ratings

Facilities Amount

(Rs. Crore) Ratings

1 Remarks

Long Term Bank Facilities 127.14

(reduced from Rs.149.68 Cr) CARE A

[Single A] Reaffirmed

Long Term / Short Term Bank Facilities 700.00 CARE A / CARE A1 [Single A / A One]

Reaffirmed

Total Bank Facilities 827.14

Rating Rationale

The ratings for the bank facilities of G R Infraprojects Ltd. (GRIL) continue to draw strength from its established

track record in road construction, its strong order book position and comfortable leverage. The ratings also take

into account the tie-up of incremental investment requirements for its Build-Operate-Transfer (BOT) projects and

the ahead of schedule construction progress for its on-going BOT projects along with related benefits thereon

including bonus entitlement.

The ratings of GRIL, however, continue to remain constrained by the limited segmental diversification of its

revenue and client concentration risk. The ratings also take into account GRIL’s elongated receivables from its key

client leading to increased working capital intensity of its operations. The ratings are also constrained on account

of the company’s presence in an intensely competitive road construction industry which is fraught with increased

execution challenges.

GRIL’s ability to increase its scale of operations along-with diversification of its revenue profile and clientele,

improve working capital efficiency and ensure envisaged performance of its existing SPVs would be the key rating

sensitivities.

Background

Incorporated in 1995, G R Infraprojects Ltd. (GRIL) took over the infrastructure construction business of the

partnership firm of its promoters, the Agarwal family, established over two decades earlier. It is engaged in road

construction in various states across the country with strong presence in Rajasthan. Apart from the construction of

roads on Engineering, Procurement and Construction (EPC) basis, the company took up three road projects on BOT

basis, one of which is operational, one has completed construction and the third one is under construction. GRIL

also set up an emulsion manufacturing plant with an installed capacity of 30,000 metric tonne per annum (MTPA)

in Udaipur, Rajasthan, which became operational in FY10.



87

Brief Rationale

Based on the audited financials, GRIL registered a total operating income of Rs.773 crore with a PAT of Rs.36 crore

in FY14 compared with a total operating income of Rs.861 crore with a PAT of Rs.53 crore in FY13. Furthermore, as

per the provisional results for Q1FY15, GRIL earned a PAT of Rs.12 crore on a total operating income of Rs.315

crore.

Analyst Contact

Name: Mr Naresh M. Golani

Tel: 079-40265618













factors.


88

Brief Rationale

October 09, 2014


Core Chemicals (Mumbai) Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 14.00 CARE BB

[Double BB] Reaffirmed

Short-term Bank Facilities 3.72 CARE A4 [A Four]

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Core Chemicals (Mumbai) Pvt Ltd (CCMPL) continues to be constrained

by relatively modest scale of operations, low profitability margins, moderate capital structure, weak debt coverage

ratios and working capital intensive nature of operations.

The ratings, however, continue to derive strength from experienced promoters and their financial support in the

past coupled with a long operational history.

The ability of the company to increase its scale of operations, amidst intense competition and efficiently manage

its working capital cycle, would be the key rating sensitivities.

Background

Core Chemicals Mumbai Private Limited (CCMPL) was incorporated in 2003 by Mr Nandu Gupta for manufacturing

of Specialties chemicals like surfactants, emulsifiers used for manufacturing pesticides, fungicides and herbicides.

CCMPL has a manufacturing plant at Badlapur (Thane) with an installed capacity of 8000 MTPA. CCMPL also has an

in-house research & development center at Vasai, Thane.








89

Brief Rationale










factors.

90

Brief Rationale

October 09, 2014


Trichy Tollway Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities@ 485

(reduced from 504)

CARE A- (SO)

[Single A Minus


Reaffirmed


@ backed by sponsor/promoter undertaking to the tune of Rs.75 crore in addition to creation of Debt Service

Reserve (DSR) in the form of Bank Guarantee amounting approximately Rs.17.8 crore which shall be valid till March

31, 2019.

Rating Rationale

The rating assigned to the bank facilities of Trichy Tollway Private Limited (TTPL) continues to factor credit

enhancement in the form of commitment by financially strong sponsors/promoters to bring in additional funds to

meet the cash deficit up to a specified extent and period. This apart, the sponsors/promoters have also created

Debt Service Reserve (DSR) in the form of bank guarantee in accordance to the escrow agreement.

The rating continues to derive strength from the experience of the sponsors, commercial importance as well as the

strategic location of the project highway and continuous growth in traffic volume since commencement of tolling

operations and fixed-price O&M contract. The rating is, however, constrained by the inherent revenue risk

associated with toll-based projects and risk associated with major maintenance, coupled with the absence of

Major Maintenance Reserve (MMR). The ability of the company to achieve the envisaged toll revenue, complete

its first cycle of major maintenance within the estimated costs and timelines, timely support from the sponsors

and/or occurrence of force majeure events are viewed as the key rating sensitivities.

Background

Trichy Tollway Pvt Ltd (TTPL) was incorporated as an SPV by a consortium of IJM Corporation Bhd (IJM) and

Shapoorji Pallonji & Co Ltd (SPCL), along with its group companies to undertake the implementation of a road

project in the state of Tamil Nadu (TN) on a BOT - Toll basis. The project highway, having a length of about 92.75

km, is part of NH-45 connecting Chennai and Dindigul in the state of TN. The company commenced tolling

operations from September 5, 2009, against the scheduled commercial operations date June 26, 2009, and

received the Provisional Completion Certificate on September 4, 2009. The delay was on account of additional

work beyond the scope of the project. Furthermore, TTPL received Final Completion Certificate dated September

4, 2012.



91

Brief Rationale

In June 2013, 74% of the equity stake of TTPL was acquired by Macquarie SBI Infrastructure Investments Pte

Limited and SBI Macquarie Infrastructure Trust (sponsors). The final project cost was around Rs.749.15 crore as

against the estimated cost of Rs.747.56 crore. The cost was funded by debt of Rs.540.92 crore, NHAI grant of

Rs.40.00 crore and the balance by way of equity and unsecured loans.

For FY14 (refers to the period April 1 to March 31), TTPL recorded a tolling income of Rs.104.80 crore (Rs.94.46

crore in FY13) and net loss of Rs.23.13 crore (Rs.20.57 crore in FY13).

Analyst Contact


Tel: +91 40102030













factors.


92

Brief Rationale

October 09, 2014

CARE reaffirms the rating assigned to the bank facilities of Kanakadurga Leasing And Finance Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 65) CARE BBB-

(Triple B Minus) Reaffirmed


Rating Rationale

The rating continue to take into account the long standing experience of the promoters in the three wheeler financing industry, healthy growth in disbursement primarily driven by gold loan and three wheeler passenger segments, healthy capital adequacy and asset quality and regular equity infusion by the promoters. The rating is, however, constrained by the modest scale of operations of the company, concentration of the business in the coastal regions of Andhra Pradesh, low seasoning of the gold loan portfolio and competition from numerous auto and gold loan financiers in the region. The ratings also take into account decline in profitability in FY14 (refers to the period April 01 to March 31). The ability of KLFL to consistently grow its portfolio base, infuse equity and external funds to support growth in the business in a timely manner and maintain healthy asset quality are the key rating sensitivities.

Background

Kanakadurga Finance & Leasing Limited (KLFL) was incorporated as a private limited company in 1994 to take over the auto financing business of the proprietary concerns floated by the promoters. The company was converted into a closely held public company in 1996. KLFL is registered as a non deposit accepting asset financing company with the RBI and is primarily engaged in the business of auto and gold loan financing. Auto financing includes three wheelers loans, LCVs, new & used cars, two wheelers and tractors. The company’s operations are spread across the coastal parts of Andhra Pradesh covering major locations. KLFL added nine new branches in the last eight months ended August 31, 2014 with a total number of 31 branches and about 22,552 borrowers spread across coastal Andhra Pradesh. During FY14, KLFL reported total income of Rs 21.21 crore (FY13: Rs 17.88 crore) and PAT of Rs 4.16 crore (FY13: Rs

4.51 crore). Total loan portfolio of the company as on March 31, 2014 stood at Rs 90.38 crore as compared to Rs

72.98 crore as on March 31, 2013. The total reported CAR of the company as on March 31, 2014 is 33.64%. During

Q1FY15, the company generated total income of Rs 5.69 crore and profit before tax of Rs 1.33 crore. The total loan

portfolio stood at Rs 91.43 crore as on June 30, 2014.

Analyst Contact


Tel: +91-40 4010 2030






93

Brief Rationale







94

Brief Rationale

October 09, 2014


Srei Infrastructure Finance Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term bank facilities 12,574.06

(enhanced from Rs.11,207.25 crore)

CARE AA- (Double A minus)

Reaffirmed

Short term bank facilities 1,500.00 CARE A1+

(A one plus)

Rating Rationale

The above ratings continue to draw strength from the satisfactory track record of the company with ‘Infrastructure

Finance Company’ status from RBI, established experience of the promoter group with prominent position in

infrastructure financing space, continuing growth in advances, diversified resource mix, satisfactory gearing with

adequate capitalization and moderate asset quality & financial performance. The ratings are however, constrained

by the risk associated with volatility in interest rates, exchange rate risks in respect of foreign currency borrowings,

portfolio concentration risk and also the challenging operating environment in the infrastructure financing space.

The ratings also factor in SIFL’s investment in group companies, majority of which are in infrastructure space and

are yet to be divested/diluted to yield commensurate returns. Ability of the company to monetize its strategic

investments, improve its asset quality and profitability would remain the key rating sensitivities.

Background

SIFL, 24 years old Kolkata based NBFC, was engaged in leasing and hire-purchase/hypothecation financing of heavy

construction equipment and financing of infrastructure related projects. Pursuant to forming a 50:50 joint venture

(JV) with BNP Paribas Lease Group (BPLG) – a 100% subsidiary of BNP Paribas, SIFL divested major part of its

equipment financing and leasing business alongwith the assets & liabilities as on Jan.1, 2008 in the JV company –

Srei Equipment Finance Pvt. Ltd. (SEFPL). Post divestment, SIFL is engaged in project financing, infrastructure

project advisory, equipment financing business (equipment of more than Rs.15.0 cr). SIFL is classified as ‘NBFC-IFC’

by RBI and it has also received ‘Public Finance Institution’ status from Minitry of Corporate Affairs, GoI.

SIFL earned PAT (after defd. tax) of Rs.59.5 crore (PY Rs.95.0 crore) on total income of Rs.1,805.9 crore (PY Rs.

1,666.5 crore) in FY13. Furthermore, it’s Gross and net NPA ratios remained at 3.53% and 3.09% respectively as on

Mar. 31, 2014 as against 3.60% and 3.26% as on Mar.31, 2013 respectively. However, both Tier I and overall CAR of

SIFL deteriorated to 10.69% and 17.78% as on March 31, 2014 from 14.28% and 21.67% as on March 31, 2013.

Furthermore, in Q1FY15, SIFL reported a PAT of Rs.35.5 crore on a total income of Rs.560.5 crore.

Analyst Contact

Name: Ayush Poddar

Tel: 033-4018 1637







95

Brief Rationale










factors.

96

Brief Rationale

October 09, 2014

CARE reaffirms the ratings assigned to the bank facilities and

assigns ‘CARE BBB-(FD)/CARE A3(FD)‘ ratings to the FD of Omaxe Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 865.00 (enhanced from 703.64)

CARE BBB- (Triple B Minus)

Reaffirmed


135.00 (reduced from 296.36)

CARE BBB-/ CARE A3 (Triple B Minus / (A Three)

Reaffirmed


Long-term/Short-term Fixed Deposit

100.00 CARE BBB- (FD)/ CARE A3 (FD) [Triple B Minus (Fixed Deposit)]/

[A Three (Fixed Deposit)]

Assigned

Rating Rationale

The ratings continue to take into account the stable profitability margins, reasonable gearing levels and

satisfactory operational progress in terms of execution/delivery in FY14 (refers to the period April 01 to March 31).

The ratings continue to draw strength from the promoter's experience, large land bank and demonstrated track

record of executing real estate projects.

The ratings, however, remain constrained by the aggressive sales and development plans, high execution risk for

ongoing projects with dependence on customer advances, high competition and subdued real estate sector

scenario.

Going forward, the ability of the company to timely execute and deliver projects, maintain sales momentum and

continue to contain its overall gearing level shall remain the key rating sensitivities.

Background

Omaxe Ltd was promoted in March 1989 by Mr Rohtas Goel and Mr Sunil Goel as Omaxe Builders Pvt Ltd. In

August 1999, the company was converted into a public limited company and the name was changed to Omaxe

Constructions Ltd and later in 2006, the name of the company was again re-christened as Omaxe Limited.

Omaxe is engaged in the business of real estate development and has presence across 30 cities in 9 states in India.

With the focus on creating affordable housing in Tier-II/III cities, the company has undertaken various projects in

the areas of township development, plotted colonies and multi-storied apartments along with building of

commercial complexes. As of March 31, 2014, Omaxe has a track record of executing 58.30 million square feet

(msf) as a real estate developer and 31.80 msf as third party contractor.

Omaxe reported a total operating income (on a consolidated basis) of Rs.1,623 crore in FY14 (PY: 2,078) and

earned PAT of Rs.79 crore (PY: 106). During Q1FY15 (unaudited), Omaxe achieved a total operating income of

Rs.331 crore and earned a PAT of Rs.12 crore.



97

Brief Rationale

Analyst Contact

Name: Harsh Gaba

Tel: 011-45333257











98

Brief Rationale

October 09, 2014

CARE reaffirms the rating aasigned to the bank facilities of

Bagzone Lifestyle Private Limited

Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long-term Bank Facilities 7.61 CARE BB [Double B ]

Reaffirmed

Short-term Bank Facilities 1.00 CARE A4 [ A Four]

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Bagzone Lifestyle Private Limited (BLPL) continues to be constrained

on account of the modest scale of operations, continuing cash losses and inherent industry risk associated with

competition from the organised and unorganised sector.

The aforesaid constraints are partially offset by the wide experience of the promoters in the retail industry coupled

with their demonstrated financial support in the past. Furthermore, the rating derives strength from the diversified

presence in the domestic market.

The company’s ability to improve its scale of operations and continued financial support from the promoters are


Background

Bagzone Lifestyle Private Limited (BLPL) incorporated in 2008 by Tainwala family is engaged in the retailing of

luggage bags, backpacks, handbags & accessories of various high-end brands, viz, Samsonite, American Tourister,

Antler, Puma, Hidesign, Baggit and others. Apart from these brands, the company has its own brand of ladies

handbags ‘Lavie’ (launched in FY12; refers to the period April 01 to March 31).

BLPL has acquired dealership of Samsonite South Asia Private Limited; (SSAPL is joint venture between Samsonite

Corporation, USA, and Tainwala family) to sell its products in India. As on March 31, 2014, BLPL’s has 138 retail

stores (22 new stores were added during FY14, out of which 4 were exclusive Lavie stores) located across Tier- I

and Tier –II cities in India with an aggregate carpet area of 130,325.92 square feet.

As per the provisional results for FY14, BLPL reported total operating income of Rs.158.19 crore (vis-à-vis Rs.124.11

crore in FY13) and net loss of Rs.10.66 crore (vis-à-vis net loss of Rs.8.84 crore in FY13). Furthermore, for Q1FY15

BLPL posted total income of Rs.42.04 crore.



99

Brief Rationale

Analyst Contact

Name: Nitesh Dhoot Tel: 022- 6754 3442 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at










100

Brief Rationale

October 09, 2014


GVK EMRI UP Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



Short term Bank Facilities 38.30

(reduced from Rs. 45.80 crore) CARE BBB-/ CARE A3

(Triple B Minus/ A Three) Reaffirmed


Rating Rationale

The ratings continue to derive strength from the strong track record of the group in providing emergency

management services, established board of governing members and management, improved operational

efficiency, timely receipt of funds from the Government of Uttar Pradesh and healthy revenue visibility in medium

term.

The ratings are, however, constrained by the weak capital structure and the organisation’s presence in a single

state resulting in revenue concentration risk.

The ability of GVK EMRI UP to consistently generate higher surplus, receive funds in a timely manner and sustain

high operational efficiency going forward are the key rating sensitivities.

Background

GVK EMRI UP Pvt Ltd (GVK EMRI UP) is an entity registered under the provisions of section 25 of the Companies

Act, 1956. Incorporated in November 2011, GVK EMRI UP is a special purpose vehicle of GVK Emergency

Management and Research Institute (GVK EMRI)[rated CARE BBB-/ CARE A3], formed to provide Emergency

Medical Transport Services (EMTS) in the state of Uttar Pradesh (UP). GVK EMRI is the largest professional

emergency service provider in India, which handles medical, police and fire emergencies through the “108

Emergency service", and operates over 6,000 ambulances across 13 states and three union territories (UTs). GVK

EMRI UP is a consortium jointly set up by the authority of Government of Uttar Pradesh (UP), Department of

Medical, Health and Family Welfare and GVK EMRI. GVK EMRI UP started it operations in September 2012 and

operates 988 ambulances in the state of UP.

During FY14, GVK EMRI UP reported a surplus of Rs.4.56 crore (loss of Rs.3.83 crore in FY13) on a total income of

Rs.152.57 crore (Rs.31.71 crore in FY13).

Analyst Contact

Name: Vidhyasagar L

Tel: +91-40 – 40102030





101

Brief Rationale









102

Brief Rationale

October 09, 2014

CARE reaffirms the rating assigned to short term debt of

Magma Fincorp Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Short-term debt/Commercial Paper)* 1,500

(reduced from 1,750)

CARE A1+ (A One Plus)

Reaffirmed

*carved out of working capital limits

Rating Rationale

The rating of Magma Fincorp Ltd. (MFL) continues to draw strength from the long track record of MFL, experienced

management team, wide branch network, increasing scale of operation and diversified asset portfolio with

increasing share of high yield products over the years. The rating continues to be constrained by the stress on asset

quality amidst moderate profitability and high overall gearing, moderate capital adequacy ratio (CAR), increasing

competition in the financial services business and exposure to regulatory risks. The rating is sensitive to proposed

equity infusion and improvement in asset quality, overall gearing and profitability.

Background

MFL, incorporated in 1978, is a Kolkata-based RBI registered NBFC and is classified as a ‘Non-Deposit taking

Systemically Important Asset Financing Company’ by RBI. The current promoters of MFL are Mr. Mayank Poddar

(Chairman) and Mr. Sanjay Chamria (Vice-Chairman and MD). The company is engaged in financing of commercial

vehicles (CV), construction equipment (CE), passenger cars (PC) & utility vehicles (UV), tractors, used vehicles and

also does SME lending. In FY13, MFL diversified its portfolio and launched three new business lines in the form of

gold loan financing (June 2012), general insurance business under JV named Magma HDI General Insurance Co. Ltd.

(October, 2012) and mortgage business under its step-down subsidiary Magma Housing Finance (MHF: a public

company with unlimited liability) after acquisition of mortgage business of GE group in India (February, 2013). MFL

has pan-India presence through a strong network of 275 branches across 21 states/union territories.

MFL reported PAT of Rs.135.57 crore on a total income of Rs.1,875.67 crore in FY14.

The company made disbursements of Rs.2,168 crore in Q1FY15 (Rs.1,751 crore in Q1FY14). It reported PAT of

Rs.34.63 crore on a total income of Rs.478.62 crore in Q1FY15 as against PAT of Rs.43.35 crore on total income of

Rs.457.13 crore in Q1FY14. CAR as on June 30, 2014 was 17.09%.

Analyst Contact





103

Brief Rationale






of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of

bank facilities/instruments.

104

Brief Rationale

October 09, 2014


HBL Power System Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from 481.48)

CARE A- (Single A Minus)

Reaffirmed



CARE A2+ (A Two Plus)

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of HBL Power Systems Limited (HBL) continue to take into account the

experienced promoters, established track record of operations, financial support from the holding company,

healthy order book position with gradual revival of telecom sector and diversified revenue profile. The ratings also

take into account the growth in total operating income and profit in FY14 (refers to the period April 1 to March 31)

and improved gearing levels. The ratings are, however, constrained by the increasing raw material prices, losses in

Q1FY15 and high working capital utilisation with an elongated operating cycle.

The ability of HBL to maintain the growth in total income along with the diversified order book and improve its

profitability and capital structure are the key rating sensitivities.

Background

HBL Power Systems Ltd was incorporated in 1986 by Dr. AJ Prasad. The company focuses on engineering

products/services with the main line of business activity as manufacturing of industrial batteries and electronic

equipments. HBL is one of the leading players in lead acid battery segment. In the past, the telecom sector was the

major revenue contributor for HBL. With slowdown in the sector over the last couple of years, HBL has diversified

into sectors like defence, railways, retail, auto, etc.

During FY14, HBL registered net sales of Rs.1,269.86 crore (Rs.1,187.77 crore in FY13) with PAT of Rs.45.01 crore

(Rs.20.44 crore in FY13). Furthermore in Q1FY15, HBL registered net sales of Rs.286 crore with a net loss of Rs.17

crore.



105

Brief Rationale

Analyst Contact

Name: Vidhyasagar.L

Tel: 040-40102030













factors.

106

Brief Rationale

October 09, 2014


United Cotton Extract Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 7.89 CARE B

[Single B] Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of United Cotton Extract Private Limited (UCEPL) continue to be

constrained by the relatively small scale of operations, low profitability margins and working capital intensive

nature of operations resulting into leveraged capital structure and weak debt coverage indicators. The rating is

further continue to constrained by operations in the highly fragmented cotton ginning industry and susceptibility

of operating margins to volatile cotton prices, seasonality associated with cotton and changes in the government

policies.

The rating however continues to derive strengths from the experienced promoters and benefits in terms of subsidy

and tax concession.

Ability of UCEPL to improve the overall scale of operations and profitability amidst intense competition and

efficient management of the working capital cycle are the key rating sensitivities.

Background

Incorporated in 2007, United Cotton Extract Private Limited (UCEPL) is primarily engaged into cotton ginning and

pressing. Further the company is also into processing of cotton seeds to produce cotton seed oil and oil cake since

2011. UCEPL’s plant is located at Malegaon, Nasik with an installed capacity for cotton lint – 4,000 MTPA

(utilisation 65% during FY14 – refers to the period April 1 to March 31), cotton seeds – 7,000 MTPA (utilisation 70%

during FY14), cotton seed oil - 700 MTPA (utilisation 60% during FY14) and oil cake 5,600 MTPA (utilisation 70%

during FY14).

During FY14 provisional, UCEPL has posted a total operating income of Rs.25.57 crore (vis-à-vis Rs.23.55 crore in

FY13) & PAT of Rs.0.13 crore (vis-à-vis Rs.0.06 crore in FY13). Furthermore, during Q1FY15 UCEPL posted a total

operating income of Rs.7.38 crore and PAT of Rs.0.07 crore.



107

Brief Rationale














factors.


108

Brief Rationale

October 09, 2014

CARE reaffirms ratings assigned to the bank facilities and debt instruments of

MRF Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long Term Bank Facilities 1,200 CARE AAA (Triple A)

Reaffirmed

Short Term Bank Facilities 550 CARE A1+


Total Facilities 1,750

NCD Issue 500 CARE AAA (Triple A)

Reaffirmed

Proposed Term Loan/ NCD Issue – Series I 100 CARE AAA (Triple A]

Reaffirmed

NCD Issue – Series II 200 CARE AAA (Triple A)

Reaffirmed

Fixed Deposit Programme 50 CARE AAA (FD)

(Triple A (Fixed Deposit)) Reaffirmed

Rating Rationale

The ratings continue to derive strength from the long operational track record of MRF Ltd, its strong market

leadership position in the domestic tyre industry characterised by presence across all the user segments with

significant market share in each segment & strong presence in replacement market aided by wide distribution

network and strong brand image with diverse product offering. The ratings also take note of consistent growth in

operating income and healthy cash accruals. These credit strengths far outweigh the factors including the

company’s profitability being exposed to volatility in the raw material prices. In light of the intense competition,

the ability of the company to continue to maintain its market position while maintaining its capital structure will be


Background

MRF Ltd (MRF), India’s largest manufacturer of automotive tyres and tubes, was incorporated as a private limited

company in 1960 to take over the business of a partnership firm ‘The Madras Rubber Factory’, started by the late

Mr K. M. Mammen Mapillai. Over the years, the company has established a country-wide dealer network and

enjoys a strong brand image.

MRF had an installed capacity of 42.1 mn tyres and 37.0 mn tubes as on March 31, 2014, spread over eight plants

across South India. Other business operations of the company consist of manufacturing pre-cured treads, tread

rubber, conveyor belts, etc. During FY13 (refers to the 12-month from October 1 to September 30), the company

generated 89% of its gross sales from the sale of tyres, 7% from tubes and the rest from others.

During FY13, the company reported PAT of Rs.802 crore on total operating income of Rs.12,158 crore. For the nine

months ended June 30, 2014, the company reported PAT of Rs.581 crore on total operating income of Rs.9,836

crore.



109

Brief Rationale

Analyst Contact

Name: Mr. P. Edwin Irudayaraj

Tel: 044-2849 7812










110

Brief Rationale

October 09, 2014


Sai Silks (Kalamandir) Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from 102.24 ) CARE BBB (Triple B)

Reaffirmed


Rating Rationale

The rating continues to derive strength from the experience of the promoters in the textile retailing, satisfactory

operational track record of the company, strong market position with established brand in the southern part of

India, established network with the suppliers, geographically diversified revenue stream and consistent growth in

the total operating income. However, the rating is constrained by the working capital intensive nature of the

operations, higher reliance on external debt to fund the operations resulting in high financial leverage and intense

competition from the organised and unorganised players in the textile retailing. The ability of the company to

increase its scale and stabilise operations in its new showrooms, sustain its market position amidst the growing

competition and improve the capital structure are the key rating sensitivities

Background

Sai Silks (Kalamandir) Limited (SSKL) was established in 2005 as a partnership firm by Mr Chalavadi N K Durga

Prasad, who is a first generation entrepreneur. It was subsequently converted into a private limited company in

2008-09 and then to a public limited company in May 2009. SSKL has a network of 21 retail outlets in important

commercial centers in South India (Andhra Pradesh, Karnataka and Tamil Nadu) and is majorly into the business of

retailing of sarees under the brand name of “Kalamandir”, “Mandir”, and “Varamahalakshmi”. Although the

company continues to focus on the sarees segment, especially mid-range and upper-range, it has diversified its

portfolio of offerings to include gold jewellery, women’s dress materials and ready-made apparels for women, men

and kids.

Mr Ch. N.K.D Prasad is the Founder, Chairman & Managing Director of SSKL and Sai Swarnamandir Jewellers (P) Ltd

[SSJPL; rated CARE BBB (SO)] and is also the Managing Partner of Sai Retail India Pvt Ltd (SRIPL; rated CARE BBB-).

During FY14 (refers to the period April 1 to March 31), SSKL reported a PAT of Rs.16.31 crore (Rs.13.77 crore in

FY13) on a total income of Rs.385.41 crore (Rs.321.04 crore in FY13).

During 5MFY15, SRIPL achieved a turnover of Rs.158.36 crore (around 38% of the projected income) and PAT of

Rs.6.67crore.



111

Brief Rationale

Analyst Contact

Name: Vidhyasagar L

Tel: +91-40 - 40102030











112

Brief Rationale

October 09, 2014


Hema Dyeing And Printing Mills Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 5.00 CARE BB+

[Double BB Plus] Reaffirmed


[A Four Plus] Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Hema Dyeing and Printing Mills Private Limited (HDMP) continues to

be constrained by relatively modest scale of operations, thin and declining operating profitability margins, working

capital intensive nature of operations and presence in the highly competitive and fragmented industry.

The ratings, however, continue to derive strength from experience of the management, long track record of

operations and modest capital structure.

Ability of the company to increase its scale of operations amidst intense competition and thereby efficiently

manage its working capital cycle, would be the key rating sensitivities.

Background

Incorporated in 1995, Hema Dyeing & Printing Mills Private Limited (HDPM) is engaged in manufacturing

and trading of blended finished fabrics. The company has its plant at Mahape (Maharashtra) with an

installed capacity of 72 lakh meters of fabric per annum.

Moreover, the company plans to shift its existing manufacturing operations to Bhiwandi, wherein it has completed civil construction and is likely to move machineries from Mahape and commence commercial production at Bhiwandi from November 2014.








113

Brief Rationale










factors.

114

Brief Rationale

October 09, 2014

CARE reaffirms the ratings assigned to the bank facilities of JITF Water Infrastructure Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 210 CARE BBB [Triple B] Reaffirmed

Rating Rationale

The rating for the bank facilities of JITF Water Infrastructure Limited (JWIL) continues to factor in the robust

growth in order book position and moderate capital structure. The rating also derives strength from the

demonstrated financial and operational support from the promoter group, viz, the PR Jindal group. The rating also

takes cognizance of the deterioration in financial performance during FY14 (refers to the period April 1 to March

31) owing to delay in execution of projects. The rating strength is partially offset by JWIL’s limited track record of

operations, slow moving orders and the company’s working capital intensive nature of operations with build-up in

receivables.

Going forward, JWIL’s ability to timely execute the orders while effectively managing its working capital cycle and

timely realization of receivables shall remain the key rating sensitivities.

Background

JITF Water Infrastructure Limited (JWIL) was incorporated in Oct 2006 as a 100% subsidiary of Jindal ITF Limited

(rated CARE BBB-),which in turn is a 100% subsidiary of Jindal Saw Ltd. (JSL, rated CARE AA-/CARE A1+, reaffirmed

in July 2014). JWIL was formerly known as Jindal Water Infrastructure Ltd, changed its name to JITF Water

Infrastructure Ltd in November 2010. It is primarily engaged in the construction of water supply systems for

manufacturing plants, laying water supply distribution networks, management of water distribution networks,

construction and management of waste water treatment plants.

During FY14, JWIL incurred loss of Rs.22.84 crore on a total operating income of Rs.140.90 crore.

Analyst Contact

Name: Sudhir Kumar

Tel # 011- 45333232







115

Brief Rationale







116

Brief Rationale

October 09, 2014


Sai Retail India Pvt Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 25

(enhanced from 6 crore) CARE BBB-


Total Facilities 25

Rating Rationale

The rating continues to derive strength from the experience of the promoters in the garment industry, long

operational track record, well established network of vendors and suppliers and increase in the total income in

FY14 (refers to the period April 1 to March 31).

However, the rating continues to be constrained by the working capital intensive nature of operations, leveraged

capital structure and intense competition from the organised and unorganised players in textile retailing leading to

thin profitability margins.

The ability of the company to increase its scale of operations and profitability margin, improve capital structure

and manage working capital efficiently are the key rating sensitivities.

Background

Sai Retail India Pvt Ltd (SRIPL) was established in January 2009 as a partnership firm and was subsequently

converted into a private limited company in December 2013. The company is engaged in the business of wholesale

trading in sarees, dress material and readymade garments in Hyderabad. The company purchases the garments

from all over the country and supplies them primarily to retail outlets of its group company Sai Silks (Kalamandir)

Limited (SSKL; rated CARE BBB).

During FY14, SRIPL reported a PAT of Rs.1.49 crore (Rs.1.02 crore in FY13) on a total income of Rs.207.96 crore

(Rs.121.04 crore in FY13). During 5MFY15, SRIPL achieved turnover of Rs.104.36 crore and PAT of Rs.0.87 crore.

Analyst Contact

Name: Vidhyasagar L

Tel: +91-40 - 40102030







117

Brief Rationale







118

Brief Rationale

October 09, 2014

CARE reaffirms the rating assigned to the commercial paper programme of

Jindal Power Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Commercial Paper Programme 1,500 CARE A1+

[A One Plus] Reaffirmed

Rating Rationale

The rating continues to reflect the healthy operational efficiency of JPL’s 1,000 MW operational

power plant and the company’s comfortable capital structure as well as liquidity position. The

rating also derives comfort from the majority ownership by Jindal Steel & Power Ltd (JSPL) in

Jindal Power Ltd (JPL). The ratings also take cognizance of commissioning of 1,800 MW Tamnar

II (Phase-3 and one unit of Phase-4) out of 2,400 MW. However, the ratings are partially off-set

by the residual risks associated with the execution of the company’s Tamnar Phase-4 expansion

project and stabilization of recently commissioned units. The ratings also take cognizance

cancellation of coal mines (Gare Palma IV/2 and IV/3) and its likely impact on the operational

efficiency and financial profile of the company in the near term.

Going forward, the ability of the company to competitively and adequately source the coal for

its 1,000 MW plant, the implementation of the ongoing project within the time & cost

estimates and the company’s ability to maintain the healthy profitability and comfortable

capital structure would be the key rating sensitivities.

Background

JPL is a 96.42% subsidiary of Jindal Steel and Power Limited (JSPL) and was incorporated on January 30, 1995 for

the purpose of setting up of 1,000 MW coal-based power generation plant in Raigarh, Chhattisgarh. The company

had commissioned the said project (Tamnar-I in two phases of 500 MW each) in September 2008. JPL is currently

in the process of increasing its power generation capacity to 3,400 MW through brown-field expansion projects

(Tamnar-II). Tamnar-II expansion project is split in two phases, Phase-3 (2 units of 600 MW each) and Phase-4 (2

units of 600 MW each). Phase-3 and one unit of Phase-4 have already been commissioned in March 2014,

whereas unit 2 of Phase-4 is expected to be commissioned by end of FY15 (refers to the period April 1 to March

31).



119

Brief Rationale

During FY14, JPL reported a total operating income of Rs.2,730 crore and earned PBILDT and PAT of Rs.1,835 crore

and Rs.1,107 crore respectively. Furthermore, the company reported a PBILDT and PAT of Rs.427 crore and Rs.195

crore respectively on a total operating income of Rs.702 crore during Q1FY15 (provisional).

Analyst Contact

Name: Sudhir Kumar

Tel # 011- 45333232











120

Brief Rationale

October 09, 2014

CARE revises the long term rating and withdraws the short term rating

assigned to the bank facilities of Reengus Sikar Expressway Limited

Ratings

Facilities Amount

(Rs. Crore) Ratings

1 Remarks

Long Term Bank Facilities 171.00 CARE BBB+

[Triple B Plus] Revised from CARE BBB

[Triple B]

Short Term Bank Facilities - - Withdrawn

Total Bank Facilities 171.00 Note: CARE has withdrawn the short-term rating for the bank facilities of RSEL as the facilities have been repaid in full.

Rating Rationale

The revision in the rating assigned to the bank facilities of Reengus Sikar Expressway Ltd. (RSEL) takes into account

the completion of the construction for 91% of the total road length eight months ahead of schedule and

recommendation by the Independent Engineer (IE) for provisional Commercial Operations Date (COD).

The rating continues to derive strength from the experience of RSEL’s sponsor, G R Infraprojects Ltd. (GRIL; rated

CARE A/CARE A1), in road construction along with its comfortable financial risk profile. The rating also continues to

favourably factor in the minimal revenue risk associated with the annuity nature of the project with National

Highways Authority of India (NHAI; rated CARE AAA for its instruments) being the annuity provider.

CARE also notes that IE has recommended to NHAI for COD and bonus annuities, though NHAI’s approval for the

same is awaited.

The rating, however, continues to be constrained by inherent uncertainty associated with future maintenance

expenditure and interest rate risk.

Receipt of approval from the concessioning authority for COD in line with the recommendation of the IE, higher

than envisaged maintenance expenses, continued financial assistance by the sponsor till sufficient reserves are

established, any deterioration in the credit profile of the annuity provider – NHAI and/or sponsor and occurrence

of force majeure events will be the key rating sensitivities.

Background

Incorporated in April 2011, RSEL is a Special Purpose Vehicle formed by GRIL to undertake four-laning of Reengus

to Sikar section of National Highway – 11 under concession from NHAI on Design, Build, Finance, Operate and

Transfer – Annuity basis. The Concession Agreement between RSEL and NHAI was executed on April 26, 2011 for a

concession period of 17 years (incl. 2.5 years of construction period). The envisaged project cost of Rs.228 crore is

being financed through debt and equity in the ratio of 3:1. The construction work on the highway had started post

the receipt of Letter of Appointed date from NHAI on March 5, 2012. RSEL applied for provisional Commercial



121

Brief Rationale

Operations Date, which has been recommended by the Independent Engineer for the project on December 14,

2013, but is yet to be approved by NHAI.

Till June 30, 2014, RSEL had incurred a cost of Rs.226 crore on the project, funded through term loan of Rs.149

crore, promoters contribution of Rs.72 crore and balance Rs.5 crore through project creditors.

Analyst Contact


Tel: 079-40265618













factors.


122

Brief Rationale

October 09, 2014


Gati Kintetsu Express Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 209.38) CARE A

[Single A] Revised from CARE A-

[Single A Minus]

Short term Bank Facilities 30

(enhanced from 20) CARE A1 [A One]


Proposed Commercial Paper@ 35 CARE A1 [A One]


Total Facilities 315 @ carved out of working capital limits

Rating Rationale

The revision in the ratings assigned to the bank facilities of Gati Kintetsu Express Private Limited (GKEPL) takes into

account the improvement in total operating income, profitability margins and overall gearing of the company

during FY14 (refers to the period July 01 to March 31).

The ratings continue to derive strength from the experienced promoters, operational synergy derived from joint

venture partnership with Kintetsu World Express (Japan’s leading logistics provider), established position in the

Express Distribution and Supply Chain (EDSC) division with a multi-modal transportation network and wide reach in

the country, diversified client portfolio, fuel costs pass through built-in contractual agreements and favourable

industry prospects for the logistics industry in the longer term.

The ratings are, however, constrained by moderate profitability margins, high correlation to the economic cycles

and fragmented nature of the industry with high competition from small and unorganised players.

The ability of the company to improve profit margins, maintain growth in the operations without affecting its

capital structure are the key sensitivities.

Background

GKEPL is a joint venture (JV) company between Gati Limited (CARE BBB+/CARE A2) – India’s largest Express

Distribution and Supply Chain (EDSC) Solutions and Kintetsu World Express Inc (KWE) - Japan’s leading logistics

provider with an equity contribution of 70:30, respectively. Earlier, the EDSC division was operated by Gati Limited

which has been transferred to GKEPL on March 31, 2012. GKEPL has a reach of 99.3% districts in India with a large

fleet of vehicles, which help in the delivery of goods in the right time at the right place. The company provides

services ranging from express distribution to complex end-to-end integrated logistics and supply chain

management solutions.



123

Brief Rationale

In FY14, GKEPL has reported a total operating income of Rs.783.16 crore [Rs.895 crore in FY13, FY refers to period

July 01 to June 30] and a PAT of Rs.36.91 crore (Rs.33.61 crore in FY13). Furthermore, the company has reported

net profit of Rs. 28.48 crore against the total income of Rs. 471.18 crore during 5MFY15 (FY refers to period April

01 to March 31).

Analyst Contact

Name: Vidhyasagar L Tel: +91-40-4010 2030 Email: [email protected]









mailto:%[email protected]

124

Brief Rationale

October 09, 2014

CARE revises the ratings assigned to the bank facilities of Sona Alloys Pvt Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank facilities 601.97 CARE D

(Single D) Revised from CARE BB+

(Double B Plus)

Short-term Bank Facilities 246.00 CARE D

(Single D) Revised from CARE A4+

(A Four Plus)

Long-term / Short-term Bank Facilities 38.95 CARE D / CARE D

(Single D / Single D) Revised from CARE BB+/CARE A4+

(Double B Plus / A Four Plus)

Total Bank Facilities 886.92

Rating Rationale

The revision in the ratings of the bank facilities of Sona Alloys Pvt Ltd (SAPL) takes into account the delays in

servicing of its debt obligations as a result of stressed liquidity arising from cash loss in FY14 (refers to the period

April 1 to March 31) and increase in working capital intensity of operations.

Background

Incorporated in January 2007, Sona Alloys Private Limited (SAPL) operates an integrated mini steel plant with a

blast furnace capacity of 336,000 metric tonne per annum (MTPA) which commenced operations in November

2010. The plant is equipped with a captive power plant of 4.7 mega watt (MW) capacity with a waste heat

recovery boiler and a sinter plant with capacity of 454,000 MTPA to use iron ore fines for steel production.

Moreover, the plant also has rolling mill with a capacity of 240,000 MTPA but the same remained largely unutilized

as it mainly produces pig iron. In August 2013, SAPL commissioned its slag cement grinding unit with a capacity of

132,000 MTPA.

SAPL’s corporate debt restructuring proposal was approved by CDR cell in September 2014 with a cut-off date

(COD) of March 1, 2014 with a moratorium period in interest and principal payment for two year from COD.

During FY14, SAPL earned a total operating income of Rs.859 crore with a net loss of Rs.102 crore as compared

with a total operating income of Rs.864 crore with a net profit of Rs.25 crore in FY13.

Analyst Contact

Name: Naresh M. Golani Tel : 079-40265618 Email: [email protected]






125

Brief Rationale










factors.

126

Brief Rationale

October 09, 2014

CARE revises the rating assigned to Lower Tier II bonds of

Indusind Bank Limited Ratings

Instruments Amount Rated

(Rs crore) Rating

1 Remarks

Lower Tier II Bonds 450.00 CARE AA+ (Double A Plus)

Revised from CARE AA (Double A)

Rating Rationale

The rating revision factors in IndusInd Bank’s consistently good performance in terms of profitability, asset quality

and capitalization levels. The rating further factors in experienced management and improving CASA proportion

over the years. The rating is, however, constrained by moderate funding profile marked by dependence on

wholesale deposits. Resource profile, capital adequacy, profitability and asset quality are the key rating

sensitivities.

Background

IndusInd Bank Ltd. is one of the new-generation private-sector banks in India which commenced its operations in

1994. The bank is promoted by group of non-resident Indians who hold 15.19% of equity as of June 30, 2014. The

Bank saw a change in management in 2008, when a team comprising several senior bankers led by Mr. Romesh

Sobti, MD&CEO took charge at the bank. Post the management change, the bank has shown strong growth in

business with improvement in operational costs and profitability. The bank also has been raising capital at periodic

intervals to fund growth and has maintained comfortable asset quality.

The day to day operations of the bank are headed by Mr. Romesh Sobti, MD & CEO, who is assisted by an

experienced and qualified team. As on June 30, 2014, the bank had a network of 638 branches and 1,238 ATMs

spread pan India. In addition, the bank has Representative Offices in London and Dubai.

Over the last five years (2010-2014), the bank’s advances and deposits base have registered CAGR of 28.0% and

22.7% respectively. On an absolute basis, the bank’s deposits and advances base stood at Rs.60502 crore [June

2014: Rs.63893 crore] and Rs.55102 crore [June 2014: Rs.58664 crore] respectively.

Over the last few years, the bank has demonstrated consistent improvement in profitability driven by well

balanced retail: wholesale portfolio mix, improving operational efficiency and steady improvement in CASA

proportion. Improved margins, operating efficiencies coupled with lower credit costs have resulted into a

sustained 32.6% y-o-y growth in PAT during FY14 [P.Y.: 32.2%] to Rs.1408 crore. IBL’s ROTA stood at 1.76% during

1 Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE

publications


127

Brief Rationale

FY14 [P.Y.: 1.63%]. During Q1 FY15, the bank reported PAT of Rs.421 crore [P.Y.:Rs.335 crore] on total income of

Rs.2874 crore [P.Y.:Rs.2383 crore].

Though the bank has witnessed marginal rise in NPAs slippages, its asset quality parameters continue to be

comfortable. As on March 31, 2014, the bank’s GNPA and NNPA ratios stood at 1.12% [P.Y.: 1.03%] and 0.33%

[P.Y.: 0.31%] respectively while net NPA/ networth stood at 2.15% [P.Y.: 1.86%]. As on June 30, 2014, the bank

reported Basel III capital adequacy ratio of 13.11% [March 14: 13.83%] and Tier I capital of 12.06% [March 14:

12.71%].

Analyst Contact

Name: Anuj Jain

Tel # 022-67543451

Mobile # 9892209428













factors.

128

Brief Rationale

October 09, 2014


Intex Technologies (India) Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 35 CARE BBB+

[Triple B Plus] Revised from CARE BBB [Triple B]

Short term Bank Facilities 122 CARE A2 [A Two]

Revised from CARE A3+ [A Three Plus]


Rating Rationale

The revision in the ratings takes into account the significant improvement in the financial profile of Intex

Technologies (India) Ltd.’s (ITIL) marked by robust growth in revenue through improved market presence in the

mobile segment, better profitability margins, and improvement in leverage and debt coverage indicators.

The ratings continue to derive strength from the experienced promoters, its long track record of operations,

established market position in the computer peripherals segment, diversified product portfolio, widespread

distribution network and the growing demand of mobile phones in India.

However, the ratings are constrained by the exposure to foreign currency risk given the company’s reliance on

imports for its mobile and computer peripherals, high level of competition in the IT hardware and mobile segment

and the associated regulatory risks.

Going forward, the ability of the company to scale up its operations by continuously adapting to the changes in

customer preferences and technology, improvement in profitability margins and efficient working capital

management along with managing the currency exchange risk shall be the key rating sensitivities.

Background

Incorporated in 1996, Intex Technologies (India) Ltd. (ITIL) was promoted by Mr. Narendra Bansal. The company is

engaged in the distribution and marketing of IT hardware and mobile phones under the brand name of ‘INTEX’.

ITIL primarily operates in three business segments namely IT Hardware (UPS, Note Book, PC, Monitor, Keyboard,

Mouse and other computer peripherals), Mobile Phones and Consumer Electronics (DVD player, TV, LCD etc.). The

company sources its products largely through imports from China, Hong-Kong and Taiwan backed by Letter of

Credit. These goods are manufactured overseas as per the company’s specifications and marketed under the brand

“Intex” in India.



129

Brief Rationale

During FY14 (refers to the period April 1 to March 31), ITIL has registered a PAT of Rs. 40.53 crore (PAT of Rs.9.21

crore in FY13) on a total income of Rs.2,071.54 crore (Rs.1,093.01 crore). During Q1FY15, based on provisional

results, ITIL has achieved a total income Rs.544.93 crore with a PBT of Rs.25.37 crore.

Analyst Contact Name: Ankita Sehgal Tel: 011 45333226 Email: [email protected]












factors.


130

Brief Rationale

October 09, 2014


Sterling Addlife India Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks





Long-term / Short-term Bank Facilities

15.00 CARE BBB+ / CARE A3+

[Triple B Plus / A Three Plus]

Revised from CARE BBB / CARE A3

[Triple B / A Three]


Rating Rationale

The revision in ratings of the bank facilities of Sterling Addlife India Ltd (SALL) take into account consistent growth

in total operating income along with improvement in profitability and cash accruals leading to comfortable debt

coverage indicators.

The ratings further derive strength from SALL’s experienced and resourceful promoter group, its established

operations as a multi-specialty hospital with presence in major cities of Gujarat and positive long-term outlook for

the healthcare sector in India.

The ratings are, however, constrained on account of delay in stabilization of SALL’s newly commissioned hospitals

which had impacted its profitability. The ratings are further constrained due to challenges of attracting and

retaining quality doctors and medical professional in the fragmented and competitive healthcare industry.

Envisaged improvement in the performance of its newly commissioned hospitals and successful completion of its

proposed expansion projects would remain key rating sensitivity.

Background

SALL incorporated in December 2000, was initially promoted by Paras Pharmaceuticals Ltd. (PPL), a leading

pharmaceutical, Over the Counter (OTC) product, company based in Ahmedabad. In 2007, Actis PE (Actis), a UK

based private equity firm, picked up stake in SALL and held 81.68% stake in it as on December 31, 2013.

Recently in the month of February 2014, Actis sold its entire share holding back to Mr Girish Patel, erstwhile

promoter of PPL. Post exit of Actis, Mr. Girish Patel and his family directly and through Addlife Investment Private

Ltd (AIPL) holds nearly 97.73% equity stake as on June 30, 2014.

SALL is operating multi-specialty hospitals under the name of ‘Sterling Hospital’ in four cities of Gujarat namely

Ahmedabad, Rajkot, Vadodara, Bhavnagar and secondary care hospitals at Adipur, Kutchch. SALL provides services

in the therapeutic segments of cardiology, critical care, joint replacement, neurology, gastroenterology etc. The

total numbers of operational beds were 827 as on June 30, 2014.

SALL reported a net profit of Rs.3.78 crore on a total operating income of Rs.314.86 crore in FY14 (Audited; refers

to the period April 1 to March 31) as against a net profit of Rs.6.08 crore on a total operating income of Rs.274.23

crore in FY13 (audited).



131

Brief Rationale

Analyst Contact


Tel: 079-4026 5614










132

Brief Rationale

October 09, 2014

CARE Revises The Ratings Assigned To Bank Facilities Of

Associated Power Structures Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities

56.57 (enhanced from 51.00)


Revised from CARE BB+ (Double B Plus)


15.00 CARE A3 (A Three)

Revised from CARE A4+ (A Four Plus)

Long term / Short term Bank Facilities


CARE BBB- / CARE A3 (Triple B Minus / A Three)

Revised from CARE BB+ / CARE A4+

(Double B Plus / A Four Plus)


Rating Rationale

The revision in the ratings of the bank facilities of Associated Power Structures Pvt Ltd (APS) takes into account

increase in its scale of operations and profitability and improvement in its liquidity during FY14 (refers to the

period April 01 to March 31) alongwith stable demand outlook for domestic transmission and distribution (T&D)

industry.

The ratings continue to draw strength from APS’ established operations in the tower manufacturing segment with

stable revenue visibility and moderately comfortable leverage.

The ratings, however, continue to be constrained on account of its modest debt coverage indicators, high working

capital intensity of its operations marked by a long operating cycle and high customer and segmental

concentration.

The ability of APS to further increase its scale of operations and profitability and efficiently manage its working

capital would be the key rating sensitivities.

Background

Setup in 1986 as a partnership firm named TAPS Engineers and reconstituted as a private limited company in 1996,

APS is mainly engaged in the fabrication of power transmission towers and execution of engineering, procurement

and construction (EPC) orders. APS also manufactures telecom towers, windmills towers, cable trays, switchyard &

solar structures and crash barriers.

The company’s manufacturing facilities are located at Bamangam and Manglej in Vadodara (Gujarat), with an

aggregate capacity of 72,000 metric tonne per annum (MTPA) for fabrication and galvanizing as on March 31,

2014.



133

Brief Rationale

As per the audited results for FY14 (refers to the period from April 1 to March 31), APS registered a total operating

income of Rs.240.20 crore with a profit after tax (PAT) of Rs.1.66 crore as against a total operating income of

Rs.189.06 crore with a PAT of Rs.2.35 crore in FY13.

Analyst Contact


Tel: 079-40265618











134

Brief Rationale

October 09, 2014

CARE revises ratings assigned to the bank facilities of

Banswara Global Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities-Term loan

3.77* (reduced from Rs.5.97

crore)

CARE BBB+ (SO) [Triple B Plus (Structured Obligation)]

Revised from CARE BBB (SO) [Triple B (Structured

Obligation)]

*Earlier Banswara Syntex Limited (BSL) (CARE BBB+/CARE A3+) and M/s. Carreman Michel Tierry (CMT) had jointly

& severally given unconditional and irrevocable corporate guarantee for bank facilities of BGL. However subsequent

to the entire stake been purchased by BSL, it is now the sole guarantor.

Rating Rationale

The above rating of the bank facilities of Banswara Global Limited (BGL) is based on the credit enhancement in the

form of unconditional and irrevocable corporate guarantee provided by Banswara Syntex Ltd (BSL, rated CARE

BBB+ / A3+) to the lenders of BGL.

The revision in the ratings of bank facilities of Banswara Syntex Ltd (BSL) factors in improvement in financial risk

profile during FY14 (refers to the period April 01 to March 31) marked by improvement in profitability margins and

overall gearing.

The ratings continue to derive strength from the experience of the promoters in the textile industry, integrated

presence across the textile value chain and diversified product profile.

The ratings are, however, constrained by the leveraged capital structure and thin profitability margins. The ratings

are further constrained by fluctuation in the prices of raw materials, forex movements imparting volatility to the

profitability and intense competition in the sector.

The ability of BSL to increase scale up operations and improve capital structure and profitability margins remains


Background

Banswara Global Ltd (BGL, erstwhile Carreman Fabrics India Ltd) was incorporated on September 16, 2005 by

Banswara Syntex Limited (BSL) (rated CARE BBB+/CARE A3+) and M/s Carreman Michel Thierry, France (Carreman);

as a 50:50 joint venture to manufacture high value lycra based fabric. Subsequently in 2013 Carreman decided to

exit and in October 2013 BSL acquired further 30% equity shares in BGL. It acquired the balance 20% stake in

August 2014 post which BGL became its wholly owned subsidiary.



135

Brief Rationale

BGL has state-of-the-art weaving plant having 77 brand new Picanol Rapier Looms and it does weaving job work

for BSL and has manufacturing unit in Banswara, Rajasthan. BGL manufacturers grey fabric exclusively for BSL for

which raw material is supplied by BSL.

Corporate Guarantee

Earlier Banswara Syntex Limited (CARE BBB+/CARE A3+) and M/s Carreman Michel Tierry had jointly & severally

given unconditional and irrevocable corporate guarantee for bank facilities of BGL. However subsequent to the

entire stake been purchased by BSL, it is now the sole guarantor.

About the guarantor (Banswara Syntex Ltd)

Banswara Syntex Limited (BSL) was incorporated in 1976 as a joint sector company between Rajasthan State

Industrial Development & Investment Corporation Ltd (RIICO) and Mr RL Toshniwal (chairman). Subsequently in

1982, Mr Toshniwal purchased the shares from RIICO. BSL started as a spinning mill and over the years emerged as

a vertically integrated mill with presence across the textile value chain, ie, spinning, weaving and garments. BSL is

one of the large integrated textile player in India manufacturing man-made synthetic blended yarn, wool and wool

mixed yarn, all type of fabrics including Jacquard furnishing fabrics, besides production of readymade garments

and made-up's. It also manufactures technical fabrics. BSL is listed on NSE as well as BSE and had a promoter

holding of 55.23% as on June 30, 2014. It had a market capitalisation of approximately Rs.124 crore as on

September 26, 2014. It has manufacturing facilities spread across Banswara, Daman and Surat.

During FY14, BSL reported net sales and PAT of Rs.1119.24 crore and Rs.26.63 crore respectively vis-à-vis FY13,

wherein it reported net sales and PAT of Rs.1007.93 crore and Rs.12.07 crore respectively.

Furthermore, during Q1FY15, BSL reported operating income and PAT of Rs.299.82 crore and Rs.4.91 crore

respectively vis-à-vis Q1FY14, wherein it reported net sales of Rs.283.32 crore and PAT of Rs.3.70 crore

respectively.

Analyst Contact

Name: Mr Pulkit Agarwal

Tel: 022-67543505










136

Brief Rationale

October 09, 2014


PBM Polytex Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Enhanced from Rs.52.06 crore) CARE A-

(Single A Minus) Revised from CARE BBB+

(Triple B Plus)


(A Two Plus) Revised from CARE A2

(A Two)


Rating Rationale

The revision in the ratings of the bank facilities of PBM Polytex Limited (PBM) takes into account the improvement

in its profitability margin and debt coverage indicators during FY14 (refers to the period April 1 to March 31) on

the back of better sales realization along-with improvement in its leverage due to reduced dependence on debt on

account of healthy cash inflow from operations.

The ratings continue to derive strength from the long-standing track record of operations of PBM and vast

experience of its promoters in the cyclical cotton yarn industry, established marketing network and clientele along

with comfortable liquidity.

The ratings, however, continue to remain constrained by the susceptibility of PBM's profit margins to volatile

cotton and cotton yarn prices, its moderate scale of operations, presence in the highly competitive cotton yarn

segment and regulatory risk associated with the industry.

PBM's ability to increase its scale of operations and improve its profitability through better product mix, effectively

manage volatility in raw material prices and increase the level of integration in the cotton textile value chain while

sustaining its comfortable capital structure are the key rating sensitivities.

Background

Incorporated in 1919, PBM was earlier known as The Petlad Bulakhidas Mills Co Ltd. The current management (ie,

the Patodia family) took over the company in 1978 and since then have gradually expanded and modernized its

facilities for manufacturing cotton yarn. As on March 31, 2014 the company had an installed capacity of 57,600

spindles and 840 rotors (for manufacturing yarn with count range of Ne 8’s to Ne 80’s). Its manufacturing facilities

are located at Petlad in Anand district of Gujarat and at Borgaon in Madhya Pradesh. PBM has also set up wind

mills in Gujarat with aggregate capacity of 3 MW and as per power purchase agreement it sells the entire power to

Gujarat Urja Vikas Nigam Ltd. (rated ‘CARE A / CARE A1’).

As per the audited results for FY14, PBM reported a total operating income of Rs.234.37 crore (FY13: Rs.218.12

crore) and PAT of Rs.19.70 crore (FY13: Rs.13.50 crore). Furthermore, PBM reported PAT of Rs.3.53 crore on total



137

Brief Rationale

operating income of Rs.56.82 crore during Q1FY15 as against PAT of Rs.5.24 crore on total operating income of

Rs.58.36 crore during Q1FY14.

Analyst Contact

Name: Mr. Kunal B. Shah

Tel: 079-4026 5681













factors.


138

Brief Rationale

October 09, 2014


Fun Multiplex Private Limited Ratings


Ratings1 Remarks

Long-term Bank Facilities 26.68 CARE A- (Single A Minus)

Revised from CARE BBB+ (Triple B Plus)


Rating Rationale

The rating revision takes into account Fun Multiplex Private Limited’s (FMPL) improved and strong capital

structure, healthy debt coverage metrics and steady rise in Average Ticket Price (ATP) and Spends Per Head (SPH)

which constitutes key operational parameters. The rating continues to derive strength from the strong parentage

(Essel group) and FMPL’s experience in the film exhibition business with presence in diverse geographical areas.

However, the rating is constrained by the moderate scale of business operations and high capital charge on

intangible assets leading to net losses. Furthermore, the rating also takes into account FMPL’s operations being

exposed to the inherent risk associated with the performance of movies at the box office.

The ability of FMPL to expand its scale of operations, generate sufficient cash flows and maintain healthy capital

structure to support its future capex plans are the key rating sensitivities.

Background

Fun Multiplex Private Ltd (FMPL) was incorporated in 2001 as part of the entertainment and retail realty

businesses of Essel group. The company is engaged in theatrical exhibition of movies through multiplex theatres

operating under the brand name Fun Cinemas and also allied and incidental activities of sale of food and beverages

and other products and services. It has a presence in nineteen locations across the country through 24 theatres, 73

screens and 20433 seats.

For FY14 (refers to the period April 1 to March 31), FMPL reported a total income of Rs.198.19 crore when

compared with Rs.188.41 crore in FY13. It posted a PBILDT of Rs.40.54 crore for FY14 when compared with

Rs.43.08 crore in FY13. For Q1FY15, FMPL posted a total income of Rs.44.61 crore when compared with Rs.56.24

crore in Q1FY14. It posted a PBILDT of Rs.6.24 crore for Q1FY15 when compared with Rs.14.73 crore in Q1FY14.

Analyst Contact Name: Ms. Savita Iyer Tel: 022 6754 3406 Email: [email protected]



139

Brief Rationale









140

Brief Rationale

October 09, 2014

CARE revises the ratings assigned to the various debt facilities/instruments of

Jindal Steel & Power Limited Ratings

Facilities Amount

(Rs.cr) Ratings

1 Remarks

Long-term Bank facilities 15,634.61 CARE AA [Double A]

Revised from CARE AA+ [Double A Plus]

Short-term Bank facilities 7,223.16 CARE A1+ [A One Plus]

Reaffirmed


Non Convertible Debentures Programme-I 500.00 CARE AA [Double A]


Non Convertible Debentures Programme-II 1,000.00 CARE AA [Double A]


Non Convertible Debentures Programme-III 1,612.00 CARE AA [Double A]


Proposed Non Convertible Debentures

Programme-IV 100.00 CARE AA

[Double A] Revised from CARE AA+

[Double A Plus]

Commercial Paper Programme 3,600.00 CARE A1+ [A One Plus]

Reaffirmed

Rating Rationale

The revision in ratings takes into account the recent Supreme Court’s verdict cancelling the coal blocks allocated

between 1993 and 2011 including those allocated to Jindal Steel & Power Ltd (JSPL). The Supreme Court verdict is

likely to impact the operating profitability of JSPL since the operational coal block Gare Palma IV/1 was key to the

operational efficiencies for its Raigarh plant. The revision in the ratings also factors in the likely impact of sizeable

outflow estimated at about Rs.2,000 crore on JSPL’s liquidity profile arising due to penalty of Rs.295/ton on the

coal extracted from the mine.

The ratings however continue to derive comfort from the consistent track record of profitable operations and the

healthy cash flows generated by the company over the years. The ratings favourably consider JSPL’s integrated

nature of operations backed by captive iron ore mine for its Raigarh facility as well as power leading to healthy

profitability margins, the company’s diversified product mix and its moderate capital structure as well as debt

protection metrics. The ratings also take cognizance of completion of its Angul phase-I project and moderation in

its profitability profile. These rating strengths are partially off-set by the cyclicality inherent in steel industry and

risks related to stabilisation of recently completed projects.

1Complete definitions of the ratings assigned are available at www.careratings.com and other CARE Publications


141

Brief Rationale

Going forward, the JSPL’s ability to ramp up operations from the Angul project, improve the liquidity and capital

structure while maintaining the profitability shall be the key rating sensitivities.

Background

Jindal Steel and Power Limited (JSPL) is part of the O.P. Jindal group of companies. The company is amongst the

leading Integrated Steel Producers (ISP) in the country. It is engaged in manufacturing of sponge iron, steel

products and power generation. JSPL has an installed steel manufacturing capacity of 4.5 MTPA (Million Tonnes

Per Annum) including sponge iron capacity of 1.37 MTPA and hot metal capacity of 1.67 MTPA. The company also

has power generation capacity of 1,661 MW as on March 31, 2014, of which 63% is utilized for captive purpose.

During FY14 (refers to the period April 1 to March 31), on a total operating income of Rs.15,299cr, the company

achieved a PBILDT and PAT of Rs.4,371cr and Rs.1,292cr respectively. In Q1FY14 (provisional) (refers to the period

April 1 to June 30), it reported a PBILDT and a PAT of Rs.1,192cr and Rs.306cr respectively on a total operating

income of Rs.3,584cr.

Analyst Contact


Tel: 011-45333232













factors.

142

Brief Rationale

October 09, 2014


Greenply Industries Ltd Ratings

Facilities/Instruments Amount (Rs. crore) Ratings1 Remarks



CARE A (Single A) Continues on credit watch



CARE A1 (A One) Continues on credit watch

Total Bank Facilities 1,117.07

Short-term Debt (including Commercial Paper)*

45.00 CARE A1 (A One) Continues on credit watch

*by earmarking fund-based working capital limit

Rating Rationale

The aforesaid ratings continue to be under credit watch on account of the proposed demerger of decorative

business (comprising laminates and allied products) into a newly formed subsidiary named Greenlam Industries

Ltd. Accordingly, CARE will continue to monitor the developments in this regard and will take a view on the ratings

once the exact implications of the above on the credit risk profile of the company are clear.

The above ratings also continue to derive strength from the experienced promoters, long track record of GIL,

leadership position in the interior infrastructure sector and satisfactory capacity utilization & financial risk profile.

The ratings also factor in Certifications from various agencies, empanelment with Military Engineers Services (MES)

and Central Public Works Department (CPWD) for supply of MDF products, extensive distribution network &

marketing support, strategic location of all the manufacturing units leading to cost advantages and increasing

presence in export market. The ratings are, however, constrained by the dominance of unorganised sector players

in the domestic plywood sector leading to intense competition, susceptibility to raw material price fluctuations,

exposure to foreign exchange fluctuation risk and significant dependence on the prospects of the real estate

sector.

Background

GIL was incorporated in August 1984, to manufacture veneer (ply) at Tizit, Nagaland. It is currently engaged in the

manufacturing of plywood, laminates, decorative veneers, MDF and allied products with manufacturing units

located in six states (Nagaland, West Bengal, Uttarakhand, Rajasthan, Himachal Pradesh and Gujarat).

GIL is the leader in the domestic plywood, laminate, decorative veneers & MDF industry and is the only integrated

manufacturer in India. The company has presence across 21 Indian states and more than 100 countries with a

distribution network of 15,000 distributors, dealers, sub-dealers and retailers.

GIL is currently in the process of demerging its decorative business (comprising laminates and allied products) into

a newly formed company named Greenlam Industries Ltd (Greenlam). The appointed date for such demerger is

April 1, 2013. Subsequent to the demerger, GIL’s shareholders will get one new equity shares of Greenlam for each

equity share held by them in GIL. The BoD of GIL had already approved such proposal at its meeting held on

September 30, 2013. The resolution for demerger has also been passed unanimously in the Court convened


publications

143

Brief Rationale

meeting of both the equity shareholders and creditors, held on June 7, 2014. However, the approval from

Honorable Guwahati High Court remains pending.

In FY14 (refers to the period April 1 to March 31), GIL earned a PAT of Rs.114.5 crore on a net sales of Rs.2,158

crore as compared to PAT of Rs.114.2 crore on a net sales of Rs.1,997.7 crore in FY13.

In Q1FY15, GIL earned a PAT of Rs.30.2 crore on a total operating income of Rs.517.1 crore vis-à-vis a PAT of

Rs.22.6 crore on a total operating income of Rs.480.5 crore in Q1FY14.

Analyst Contact

Name: Ayush Poddar

Tel: 033-4018 1637













factors.


144

Brief Rationale

October 09, 2014

CARE withdraws real estate project star rating assigned to

Red Fort Parsvnath Tower By Parsvnath Estate Developers Private Ltd

CARE has withdrawn NCR - 6 Star [NCR] rating assigned to Red Fort Parsvnath Tower by Parsvnath

Estate Developers Private Limited with immediate effect, at the request of the company as the project is

completed and Completion Certificate has been obtained.

Analyst Contact

Name: Harsh Gaba

Tel: 011-45333257




Disclaimer: CARE’s rating of real estate projects is an opinion on the developer’s ability to execute the real estate project in

timely manner and with the agreed upon quality standards. Besides, it is an opinion of the legal quality of the project. The

analysis draws heavily from the information provided by the developer, information obtained from sources believed by CARE to

be accurate. However, CARE does not guarantee the accuracy, adequacy or completeness of any information and is not

responsible for any errors or omissions or for the results obtained from the use of such information. Also, CARE does not

guarantee the adequacy of title search done to arrive at the legal quality of the project. It is also not a recommendation to buy,

sell or hold the rated real estate property. CARE shall also not be liable for any losses incurred by users from any use of such

rating. Most of the developers whose real estate projects are rated by CARE have paid a rating fee.


145

Brief Rationale

October 09, 2014

CARE withdraws the rating assigned to the NCD issue of

Lakisha Real Estate Limited

CARE has withdrawn the rating assigned to the Non-Convertible Debenture issue of Lakisha Real Estate Limited

with immediate effect, as the company has fully repaid the amounts under the said issue and there is no amount

outstanding under the issue as on date.

Analyst Contact

Name: Sharmila Jain Tel.: 022-67543638 Email: [email protected]












factors.


146

Brief Rationale

October 08, 2014

CARE Assigns ‘CARE BB’ rating to the bank facilities of

Goan Real Estate And Construction Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 100 CARE BB

(Double B) Assigned


Rating Rationale

The rating assigned to the bank facilities of Goan Real Estate and Construction Private Limited (GRECPL) is

constrained by project execution risk, pending infusion of balance promoter funding and saleability of the project

not yet being established.

The rating, however, factors in the experience of the promoter group, entire debt being tied up and favourable

location of the project.

On-time execution of the project and the ability of GRECPL to achieve the envisaged level of sales at the desired

price points constitute the key rating sensitivities.

Background

Goan Real Estate and Construction Pvt Ltd (GRECPL), incorporated in 1989, has been promoted by the Dynamix

group. The Dynamix group was founded in the late 1970’s by Mr KM Goenka with a foray in real estate

development. The group has developed more than 10 million square Feet (sq ft) in Mumbai comprising residential,

commercial and hospitality structures.

GRECPL is developing a projected named “Aldeia de Goa”, located at Bambolin, Goa. The project is being

developed in a phase wise manner. Out of the five phases, Phases I, II, IV and V (Sector 1) are completed. As on

June 30, 2014, GRECPL is developing Phase II which consists of ten villas titled “Frangipani” and Phase V – Sector 2

which consists of 176 residential apartments.

The total project cost for the ongoing phases (Phase II and Phase V – Sector 2) is Rs.214.20 crore out of which

GRECPL has incurred cost of Rs.43.77 crore or 20% of the project cost as on June 30, 2014.

Financial Performance: Not meaningful as GRECPL is a project stage company

Analyst Contact

Name: Sharmila Jain

Tel: 022-67543638







147

Brief Rationale









financial performance and other relevant factors.

148

Brief Rationale

October 08, 2014

CARE reaffirms the ratings assigned to various instruments of

State Bank Of Travancore

Ratings

Instruments Amount

(Rs. Crore) Ratings

1 Remarks

Lower Tier II Bonds 235 CARE AAA

[Triple A] Reaffirmed

Upper Tier II Bonds (Series I) 200 CARE AAA


Upper Tier II Bonds (Series II) 300 CARE AAA


Upper Tier II Bonds (Series III) 500 CARE AAA


Perpetual Bonds (Series I) 100 CARE AAA


Perpetual Bonds (Series II) 200 CARE AAA


Total 1,535

Rating Rationale

The ratings continue to factor in State Bank of Travancore’s (SBT) strong parentage [State Bank of India (SBI),

holding 78.91% stake in SBT] and the operational & management synergies with the parent SBI, including

alignment of risk management policies. SBI is the largest bank in the country wherein the government of India had

a shareholding of 58.60% as on March 31, 2014. It also holds a dominant position in the Indian banking industry

with a well-established branch network and large asset size. The ratings also take into consideration the

longstanding track record of SBT and its leading position in the state of Kerala.

The parentage & support of SBI and the ability of SBT to maintain the capital adequacy, asset quality and

profitability are the key rating sensitivities.

Background

The Thiruvananthapuram-based State Bank of Travancore (SBT) was incorporated in 1960 under the State Bank of

India (Subsidiary Banks) Act, 1959. State Bank of India (SBI; rated ‘CARE AAA’) is the main promoter and on the

back of equity infusion aggregating Rs.385 crore on preferential basis, SBI’s shareholding has increased to 78.91%%

as on May 20, 2014 from 75% as on March 31, 2014.

As on March 31, 2014, SBT had 1,117 branches (with 820 of them located in the state of Kerala) and an ATM

network of 1,352 ATMs. SBT also has a sizeable NRI customer base particularly in the Middle-East Asia.

1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications

149

Brief Rationale

For FY14 (refers to the period April 01 to March 31), SBT earned a PAT of Rs.304 crore on a total income of

Rs.10,559 crore. The Capital Adequacy Ratio (CAR, under Basel III) of SBT stood at 10.79% as on March 31, 2014.

For Q1FY15, SBT earned a PAT of Rs.50 crore on a total income of Rs.2,644 crore.

Analyst Contact Name: P.Sudhakar Tel: 044-2489 7812 Email: [email protected]



Disclaimer

CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned

bank facilities / instruments or to buy, sell or hold any security. CARE has based its ratings on information obtained from






150

Brief Rationale

October 08, 2014


Suraj Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed

Long term/ Short term Bank Facilities 77.08 CARE BBB-/ CARE A3 (Triple B Minus)/ (A

Three) Reaffirmed


Rating Rationale

The ratings of Suraj Ltd. (SL) continue to take into account its established operations in the stainless steel (SS)

seamless pipe and tube market, experienced management, diversified clientele and moderate profitability,

leverage and debt coverage indicators.

The ratings, however, continue to be constrained by susceptibility of its profitability to volatile raw material prices,

foreign exchange fluctuation, high working capital intensity of its operations and its presence in a highly

competitive and cyclical SS tube and pipe industry.

SL’s ability to grow its scale of operations and improve its working capital cycle through better inventory

management, pass on increase in raw material prices to its customers in a competitive environment and prudent

management of its foreign exchange exposure would be the key rating sensitivities.

Background

Promoted by Mr. Ashok T Shah, SL (formerly known as Suraj Stainless Limited [SSL]) is a listed public limited

company based out of Ahmedabad. It is engaged in the manufacturing of SS welded pipes as well as seamless

tubes and pipes at its manufacturing facility located at Thol (Dist. Mehsana, Gujarat) with an installed capacity of

4400 Metric Tonnes Per Annum (MTPA) each for manufacturing SS seamless tubes and pipes and SS welded pipes.

The company also has a backward integration facility to produce SS hollow mother pipe which is the primary raw

material for manufacturing SS seamless pipes and tubes.

As per the audited results for FY14 (refers to the period April 1 to March 31), SL registered a total operating

income of Rs.239 crore (FY13: Rs.267.14 crore) with a PAT of Rs.3.68 crore (FY13: Rs.7.15 crore). As per the

unaudited Q1FY15 results, SL has reported a TOI of Rs.62.83 crore (FY13: Rs.58.53 crore) with a PAT of Rs.1.39

crore (FY13: Rs.1.67 crore).



151

Brief Rationale

Analyst Contact

Name: Mr Vishal Joshi

Tel: 079-40265656













factors.

152

Brief Rationale

October 08, 2014

CARE reaffirms rating to outstanding NCD of

STCI Finance Ltd. Ratings

Instruments Amount Rated

(Rs crore) Rating

1 Remarks

Non-convertible Debentures 1000 CARE AA

[Double A] Reaffirmed

Rating Rationale

The rating factors in the strong parentage of STCI Finance Ltd. (STCI), experienced management, strong capital

adequacy, comfortable asset quality, healthy business growth and profitability. The rating is however, constrained

by limited track record & relatively small scale of operations, high exposure to single asset class of loan against

shares/ promoter funding and high reliance on short term funds. Continued parent support, asset quality,

portfolio diversification and funding profile are the key rating sensitivities.

Background

STCI Finance Ltd. (STCI) (formerly known as Securities Trading Corporation of India Limited), is a systemically

important non-deposit taking NBFC registered with Reserve Bank of India (RBI). STCI was initially promoted by RBI

with a shareholding of 50.18% in May 1994 and authorized it as one of the first Primary Dealers (PDs) in India. The

RBI later divested its shareholding in STCI partly in 1997 and the balance stake in 2002 to its existing shareholders.

Presently, STCI is an associate of Bank of India (BoI) with latter holding around 30% stake in the company. Public

sector banks and public sector insurance companies hold 75% and 6.6% stake, respectively with the rest being held

by other financial institutions.

In compliance with the RBI guidelines, STCI divested its PD business in a step down subsidiary named STCI Primary

Dealer Limited in October 2006. Since 2007, STCI is in the business of offering products like loan against

marketable securities, promoter funding, term loans & bridge finance. In line with the business activities, the name

was changed from Securities Trading Corporation of India Limited to ‘STCI Finance Limited’ in October 2011. STCI

has two subsidiaries viz. STCI Primary Dealer Limited (STCI PD) and STCI Commodities Limited (STCI Commodities).

STCI operates from its office in Mumbai and also has a representative office in Delhi.

During 2012-2014, STCI’s loan portfolio has increased at CAGR of 49% y-o-y. As on March 31, 2014, the company’s

loan portfolio stood at Rs.2799 crore [P.Y.: Rs.1,873 crore] of which LAS constituted 83% [P.Y.: 91%]. On standalone

basis, the company reported PAT of 91 crore on total income of Rs.353 crore. Healthy earnings growth, stable

margins as well as lower operating and provisioning costs have led to 16% y-o-y growth in PAT during FY14. On


publications


153

Brief Rationale

consolidated basis, STCI reported PAT of Rs.149 crore during FY14 [P.Y.: Rs.107 crore] on total income of Rs.642

crore [P.Y.: Rs.488 crore].

As on March 31, 2014, the company had comfortable Capital Adequacy Ratio (CAR) of 26.56% [June 2014: 25.53%]

and Tier I CAR of 25.87% [June 2014: 24.87%]. Asset quality indicators showed improvement as on March 31, 2014

with GNPA and NNPA being 1.10% [P.Y.:2.74%] and 0.88% [P.Y.: 2.47%] respectively. The net NPA/ networth ratio

stood at 2.74% as on March 31, 2014 [P.Y.: 5.48%].

Analyst Contact

Name: Anuj Jain

Tel # 022-67543451

Mobile # 9892209428












capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other

relevant factors.

154

Brief Rationale

October 08, 2014

CARE reaffirms rating assigned to the bank facilities of Sunrise Timply Co. Pvt. Ltd.

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 6 CARE BB

(Double B) Reaffirmed

Short-term Bank Facilities 20 CARE A4+

(A Four Plus) Reaffirmed

TOTAL 26

Rating Rationale The ratings continue to be constrained by the below average financial risk profile of Sunrise Timply Co. Pvt. Ltd.

(STPL) marked by its low profitability margins, high gearing and moderate debt coverage indicators. The ratings are

further constrained by its working capital intensive nature of business, its presence in the highly competitive

timber trading business, susceptibility of its margins to the volatility in the foreign exchange rates and risk of

country-specific trade regulations and concentrated customer base.

The ratings, however, continues to draw comfort from the long standing experience of the promoters in the timber

industry, its satisfactory track record and positive demand prospects arising from the growing demand.

Going forward, STPL’s ability to grow its scale of operations with simultaneous improvement in profitability

margins and effective working capital management would be the key rating consideration.

Background

Sunrise Timply Co. Pvt. Ltd. (STPL), incorporated in February 2000, has been promoted Mr Gopal Bagla and his family

members based out of Kolkata. The company is engaged in the business of trading plywood and imported timber.

The company imports round timber logs from Malaysia, Myanmar, Africa, New Zealand and Indonesia, while

plywood is procured domestically. The company sells its products to wholesalers, retailers & saw mills in the

domestic market. Its warehousing facility is located at Khidderpore, Kolkata, near to the Kolkata port, thereby

facilitating easy import of timber.

In FY14 (refers to the period April 01 to March 31), the company has reported a total operating income of Rs.66.64

crore (Rs.58.58 crore in FY13) and PAT Rs.0.63 crore (Rs.0.47 crore in FY13).

Analyst Contact

Name: Chandan Agarwal

Tel # 033-40181638

Mobile # 9883126457





155

Brief Rationale



Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the



factors.

156

Brief Rationale

October 08, 2014


South Asia LPG Company Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 73.23 (reduced from 98.46)

CARE AA+ (Double A Plus)

Reaffirmed

Short-term Bank Facilities 4 CARE A1+ (A One Plus)

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of South Asia LPG Company Pvt Ltd continue to derive strength from the

strong promoters with vast experience in the oil & gas sector, experienced management with strong technical &

operational support from the parent companies, assured minimum storage commitment from Hindustan

Petroleum Corporation Ltd (HPCL), continued growth in the volume during FY14 (refers to the period April 1 to

March 31), first of its kind environment-friendly and cost-effective underground storage facility in India, strategic

location of the storage facility on the east coast and healthy financial risk profile marked by stable cash flows and

improving capital structure. The ratings, however, continue to be constrained by the long standing receivables

from IOCL and BPCL and limited track record of operations. The ability of the company to sustain growth in storage

volumes going forward and recover outstanding receivables from IOCL and BPCL are the key rating sensitivities.

Background

SALPG is a 50:50 joint venture between HPCL and Total Gas & Power India (TGPI), a wholly-owned subsidiary of

M/s TOTAL SA, France. SALPG commissioned 60,000 MT underground rock mined LPG storage cavern in 2008 and

the underground cavern is the first of its kind and largest LPG storage facility in India. The company also provides

LPG transport facility (not for storage purpose), ie, by-pass services to its customers.

During FY14, SALPG reported profit after tax of Rs 79.38 crore (FY13: Rs.75.51 crore) on total operating income of

Rs.158.95 crore (FY13: Rs.155.03 crore). For the three months ended June 30, 2014, the company has earned total

operating income of Rs.42.61 crore and profit after tax of Rs. 21.97 crore.

Analyst Contact


Tel: 040 – 40102030






157

Brief Rationale










158

Brief Rationale

October 08, 2014


East India Petroleum Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 45 CARE A (Single A) Reaffirmed

Short-term Bank Facilities 0.13 CARE A1 (A One) Reaffirmed


Rating Rationale

The ratings of East India Petroleum Pvt Ltd (EIPL) continue to derive strength from the vast experience of the

promoters in mid-stream oil & gas and other infrastructure segments, healthy financial risk profile marked by

strong profitability margins and comfortable capital structure, sole third-party provider of Class A and B Petroleum

Oil and Lubricants (POL) storage facilities in Visakhapatnam port, one of the only two companies offering liquefied

petroleum gas (LPG) storage services in Visakhapatnam port, portfolio of marquee clientele and strategic location

of the storage facility on the east coast of India. The ratings also take into consideration the growing inclination for

third-party storage and terminalling services by oil marketing PSUs and rising demand from industries such as

pharmaceuticals, polymers and petrochemicals. The ratings, however, are constrained by concentration of assets

in Visakhapatnam port exposing the company to any adverse fluctuation in LPG imports at the said port, absence

of firm commitments for LPG storage and dispatch from its clients and decline in revenue from the LPG segment

during FY14 (refers to the period April 01 to March 31). The ability of the company to successfully complete the

planned expansion and capitalize on envisaged benefits, obtain firm commitment for LPG throughput and sustain

profitability and growth in storage volumes are the key rating sensitivities.

Background

East India Petroleum Private Limited (EIPL) was promoted as a joint venture between SHV Energy NV and Indian

promoter, Mr M.S. Ramakrishna and associates as Visakha Storage Systems Private Limited in 1994 and

rechristened itself to East India Petroleum Limited in 1995, followed by a change in constitution to a private limited

company in 2007. It commenced POL operations in 1997 and LPG operations in 1998. In 2007, Energy Infra Limited

acquired majority stake in EIPL. Energy Infra Limited, which owns 73.99% stake in EIPL, is controlled by Global

Infrastructure Partners (GIP), an infrastructure focused fund with offices in London and New York. Currently, EIPL

provides facilities for receipt, storage and handling of LPG, petroleum products, petrochemicals, biodiesel and

other bulk liquids at its storage facilities at Visakhapatnam port, Andhra Pradesh. The company has storage

capacity for LPG of 8,400 MT through three LPG storage spheres and of 1,353,060 KL for POL storage.

During FY14, EIPL reported profit after tax of Rs.16.86 crore (FY13: Rs.20.95 crore) on a total operating income of

Rs.43.26 crore (FY13: Rs.49.38 crore). For the three months ended June 30, 2014, the company has earned a total

operating income of Rs.8.62 crore and profit after tax of Rs.4.37 crore.



159

Brief Rationale

Analyst Contact


Tel: 040 – 40102030













160

Brief Rationale

OCTOBER 08, 2014


Blue Star Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities

(Fund-based)

50.00 CARE AA+

(Double A Plus)

Reaffirmed


(Non Fund-based)

1,010.00 CARE A1+

(A One Plus)

Reaffirmed

Commercial Paper

(Standalone)

350.00 CARE A1+

(A One Plus)

Reaffirmed


Rating Rationale

The ratings continue to factor in Blue Star Limited’s (BSL) proven track record and dominant market position in the

central air-conditioning and cooling products business, reputed client base, pan-India presence with a wide

marketing and dealers network. The ratings also factor in improvement in debt coverage indicators in FY14 (refers

to the period April 1 to March 31) on the back of revival of operating margins in the Cooling Product segment.

The rating strengths are, however, tempered by moderation in liquidity profile due to consistently high debtors.

Furthermore, improvement in the operating performance, order inflow (in Electro Mechanical Projects and

Packaged Air-conditioning Systems segment) and timely collection of receivables are the key rating sensitivities.

Background

Blue Star Limited (BSL) was incorporated in 1943 by Late Shri Mohan T. Advani. The company is India’s leading

central air-conditioning and commercial refrigeration company fulfilling the cooling requirements and providing

end-to-end solutions as a manufacturer, contractor and after-sales service provider to corporate, commercial,

residential and institutional customers. BSL has six manufacturing facilities located at Thane, Ahmedabad, Bharuch,

Dadra, Wada and Himachal Pradesh. The operations of the company are categorized into the three segments a)

Electro Mechanical Projects and Packaged Air-conditioning Systems (EMP) segment b) Cooling Products (CP)

segment and c) Professional Electronics and Industrial Systems (PEIS) segment.

In FY14, BSL reported marginal growth in revenues by 0.1% y-o-y to Rs. 2,751 crore. BSL’s PBILDT margin in FY14

stood at 4.47% as compared to 3.93% in FY13 (mainly on account of lower raw material costs). PAT margin for FY14

stood at 2.7% as compared to 1.9% in FY13.



161

Brief Rationale

Analyst Contact

Name: Mr. Chaitanya Raut

Tel: 022-6144 3458










162

Brief Rationale

October 08, 2014


Seacem Paints (India) Pvt Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 7.87 CARE D Revised from CARE B

(Single B)

Short-term Bank Facilities 2.00 CARE D Revised from CARE A4

(A Four)

TOTAL 9.87

Rating Rationale

The revision in the ratings assigned to the bank facilities of Seacem Paints (India) Pvt Ltd factors in the instances of

the on-going delay in servicing of its debt obligations on account of the stressed liquidity position of the company.

Background Seacem Paints (India) Pvt Ltd (SPPL) was incorporated in 1966 by Kolkata-based Mukherjee family. Since inception,

the company is engaged in the manufacturing of cement based paints (including wall putty) and liquid paints

(primer, acrylic, etc.) for exterior use at its sole manufacturing facility located at Maheshtala (Kolkata) with

manufacturing capacity of 15,000 Metric Tonne Per Annum (MTPA) for cement based paints and 8,040 Kilo Litre

(KL) for liquid paints.

In the year 1996, the company was acquired by the Late Arun Baheti, who used to supply raw materials to SPPL

thorough a family owned firm. After the demise of Mr Arun Baheti in 2007, the company has been spearheaded by

his son Mr Gaurav Baheti. The products of the company are sold under the brand names ‘Seacem’, ‘Karishma’ and

‘Buildguard’ in Eastern India.

During FY13 (refers to the period April 1 to March 31), SPPL had reported a total operating income of Rs.38.3 crore

and PAT of Rs.0.4 crore.

Analyst Contact


Tel # 033-40181638

Mobile # 9883126457




[email protected] for any clarifications






163

Brief Rationale

Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the



factors.

164

Brief Rationale

October 08, 2014


AGC Networks Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 154.15 (reduced from

Rs.200.00 crore)


Revised from CARE BBB+ (Triple B Plus)

Short term Bank Facilities 40.85 (reduced from Rs.50.00 crore)

CARE A3 (A Three)

Revised from CARE A2 [A Two]


Rating Rationale

The revision in the ratings takes into account sharp deterioration in financial performance during FY14 (refers to

the period April 1, 2013 to March 31, 2014), stretched collection period leading to moderation in liquidity,

corporate guarantee extended to a subsidiary during FY14, and weakening of capital structure along with debt

coverage indicators. Further, the ratings factor in the foreign exchange risk faced by the company and competitive

nature of the IT/ITes industry.

The ratings continue to be supported by the experience promoters (viz., Essar group) and management, sound

technical know-how and domain expertise, strong and diverse client based across various verticals and diversified

capabilities in Information and Communication Technology (ICT) solutions.

AGC’s ability to achieve turnaround in its financial performance in the scenario of stiff competition in the industry,

progress in performance with initiatives taken by the management and improvement in its working capital

management are the key rating sensitivities.

Background

AGC, incorporated in 1986 by Tata Telecom Pvt. Ltd. to manufacture telecommunication equipment, was acquired by

the USA based Avaya Inc in 2004. In August 2010, Essar group acquired 79.13% stake in the company which was

transferred to a group company Aegis Ltd (Aegis; rated CARE A/A1). Aegis has transferred the investment in AGC to a

group company (viz., Essar Telecom Ltd) w.e.f March 28, 2014.

Over the years, AGC evolved into ICT solutions provider and integrator with a differentiated vertical approach in business

communication systems, applications and services mainly within India. The company provides server based converged

networking platform for voice, data and video including IP telephony, multimedia call centre and Customer Relationship

Management (CRM) solutions, unified communications and customer service.

AGC has been undergoing major expansion in its international operations. The company has consistently increased its

global footprint through foray into multiple geographies such as Middle East, Africa, North America, Australia, etc.



165

Brief Rationale

Key developments

Demerger of the Specialized Managed Services Division

In July, 2013, the Board of Directors of AGC approved demerger of the specialized managed services division

(captive division) of AGC Networks Inc (100% subsidiary). The company transferred the specialized resources of the

above division along with identified assets and liabilities to Aegis Global Inc at carrying value for USD 1,000

(approx. Rs.60,500), with effect from April 1, 2012.

Transfer of investment in AGC by Aegis

Aegis has transferred the investment in AGC to a group company (viz. Essar Telecom Ltd) w.e.f March 28, 2014 for

a consideration of USD 28 million (approx. Rs.175 crore). Technology business generally has different working

capital cycle and margins as compared to BPO business. The transfer is mainly to bring focus on core business (viz.

offshore BPO) of Aegis. The transaction was cash neutral for AGC.

On standalone basis, AGC posted a total income of Rs.322.50 crore with a net loss of Rs.145.10 crore in FY14.

Further, the company registered a total income of Rs.60.10 crore and a net loss of Rs.27.70 crore in Q1FY15.

On consolidated basis, AGC posted a total income of Rs.792.60 crore and a net loss of Rs.271.60 crore in FY14. Further,

the company registered a total income of Rs.192.00 crore and a net loss of Rs.19.50 crore in Q1FY15.

Analyst Contact

Name: Mr. Puneet Bhatia

Tel: 022-6754 3453










166

Brief Rationale

October 08, 2014

CARE withdraws ratings assigned to bank facilities of

Bird Automotive Pvt. Ltd CARE has withdrawn the ratings assigned to the bank facilities of Bird Automotive Pvt. Ltd with immediate effect,

as the company has fully repaid the aforementioned bank facilities and there is no outstanding amount as on date.

Analyst Contact

Name: Harsh Gaba

Tel: 011-45333257














167

Brief Rationale

October 08, 2014

CARE assigns ‘CARE BB+’ ratings to the bank facilities of

Chemmanur Credits And Investments Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 20.00 CARE BB+

[Double B Plus] Assigned

Rating Rationale

The ratings assigned to ‘Chemmanur Credits and Investments Ltd (CCIL)’ factors in moderate asset quality and

relatively low profitability indicators. The rating also considers geographical concentration of the loan portfolio and

concentration of the resource profile. The rating also takes note of diversification towards other asset class and

competition from other gold loan NBFCs.

The ratings, however factor in track record of the group in gold business, experience of the promoters’ and

financial support from the promoters and experienced management team. The ratings also consider comfortable

capital adequacy levels and asset liability maturity profile.

Going forward, the ability of the company to improve its asset quality and profitability levels while increasing the

scale of operations, sustain comfortable capital adequacy levels, and any change in the regulatory environment are


Background

Chemmanur Credits and Investments Limited (CCIL), a non-deposit taking NBFC promoted by Mr. Chemmanur

Devassykutty Boby is a part of Boby Chemmanur International group founded in 1863 with the main activity being

retail gold jewelry business at Thrissur. The group ventured into gold loan NBFC in 2008 through CCIL and the

commercial operation was started on August 2011 with 24 branches located in Thrissur and Palakkad district.

CCIL’s core business is offering loan against gold jewelry and constitutes around 80% of loan portfolio and the rest

constitutes Microfinance and personal loan as on March 31, 2014. CCIL is also a RBI authorized Money Changer.

The company had loan portfolio of Rs.224 crore and operated through 115 branches located in Kerala as on March

31, 2014.

During FY14 the company reported a PAT of Rs.0.59 crore on a total income of Rs.44.56 crore. Capital Adequacy

Ratio was at 25.25% as on March 31, 2014.

Analyst Contact

Name: Sudhakar P

Tel: 044-28497812

Mobile: +91-94422 28580




168

Brief Rationale



Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments

169

Brief Rationale

October 08, 2014 CARE assigns ‘CARE BB-’ and ‘CARE A4’ ratings to the bank facilities of

Transtron Electricals Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


CARE BB- (Double B Minus)

Assigned


CARE A4 (A Four)

Assigned

Long-Term/Short-Term Bank Facilities 5.50

CARE BB-/ CARE A4 (Double B Minus/ A Four)

Assigned

Total Facilities 9

Rating Rationale

The ratings assigned to the bank facilities of Transtron Electricals Private Limited (TEPL) are primarily constrained

by its small scale of operations coupled with low networth base, low profitability margins in FY14 (refers to the

period April 1 to March 31) and leveraged capital structure. The ratings are further constrained by its concentrated

customer base, presence in a highly competitive and fragmented transformer industry and its exposure to

volatility in raw material price.

The ratings, however, favourably take into account the experience of the promoters in the industry, growth in

turnover and moderate operating cycle.

Going forward, TEPL’s ability to profitably scale up its operations while diversifying its customer base and

improving its capital structure shall be the key rating sensitivities.

Background

Meerut, Uttar Pradesh-based TEPL was incorporated in 1998 by Mr K.N Singhal, Mr A.K. Singhal and Mr N K Arora.

The company is engaged in the manufacturing of power transformers, distribution transformers, furnace duty

transformers and double output transformers. The company caters to various state electricity boards and also

undertakes engineering, procurement and construction (EPC) contracts for the installation and erection of

electrical substations and transformers. The company’s manufacturing facility is located at Meerut, Uttar Pradesh.

The main raw materials for the company include Cold Rolled Grain Oriented (CRGO) steel, Mild Steel (M.S.) sheets

and copper which are mainly procured from the manufacturers based in the National Capital Region (NCR) and

Vadodara (Gujarat). The operations of the company are ISO 9001:2000 certified.

TEPL has reported a net profit of Rs.0.40 crore on a total operating income of Rs.26.50 crore during FY14 as against

net profit of Rs.0.25 crore on a total operating income of Rs.13.88 crore in FY13.



170

Brief Rationale

Analyst Contact Name: Achin Nirwani Tel: 011- 45333228 Email: [email protected]



Disclaimer:


bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by

it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information

and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities

whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank

facilities/instruments.




factors.


171

Brief Rationale

October 08, 2014

CARE reaffirms the rating to the lower Tier II bonds of

Karnataka Bank Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Lower Tier II Bonds 600 CARE A

(Single A) Reaffirmed

Rating Rationale

The rating continues to take into account the long track record of operations of the bank, stable asset growth and

comfortable capital adequacy with high proportion of Tier I capital. The rating is, however, constrained by the

modest asset quality parameters witnessing deterioration in FY14 (refers to the period April 01 to March 31),

moderate profitability, regional concentration and small size of operation of the bank. The ability of Karnataka

Bank Ltd (KBL) to improve its asset quality and profitability parameters would be the key rating sensitivities.

Background

Karnataka Bank Ltd (KBL) is a Mangalore-based, small-sized, old private sector bank which was set up in

1924. As on June 30, 2014, the branch network was spread across 609 branches (June 30, 2013: 555)

and 718 ATMs (June 30, 2013: 529). Majority of the branch network is in the state of Karnataka. CBS

coverage of the bank is 100%.

During FY14, KBL registered a PAT of Rs.311 crore (FY13: Rs.348 crore) on total income of Rs.4694 crore

(FY13: Rs.4162 crore). During Q1FY15, KBL registered a PAT of Rs.122 crore on total income of Rs.1254

crore.

Analyst Contact

Name: Karthik Raj K

Tel: 080-4165 4529







172

Brief Rationale







173

Brief Rationale

October 08, 2014

CARE reaffirms the rating to the assigned to the bank facilities of

Ujjivan Financial Services Private Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 2000

(enhanced from 1500) CARE A-

(Single A Minus) Reaffirmed

Rating Rationale

The rating continues to factor in the consistent and robust improvement in earnings and profitability of Ujjivan

Financial Services Pvt Ltd (Ujjivan) for the past two years with the increasing scale of operations and efficiency.

The rating also continues to reflect geographically well-diversified client portfolio with good asset quality,

experienced management and well-developed portfolio management systems.

The rating is, however, constrained by the increasing proportion of relatively riskier individual lending portfolio

which is presently limited to 7% of the overall portfolio and inherent risks associated with the microfinance

industry including socio-political and regulatory risks.

The prospects of Ujjivan will be linked to the robustness of the MFI sector and how Ujjivan strategizes its

expansion plans maintaining the profitability, asset quality and capitalization at healthy levels.

Background

Ujjivan is a Bangalore-based microfinance company registered as NBFC-MFI with RBI as NBFC-ND SI. It

has been in microfinance lending since 2005 and operates through joint liability group model in urban

and semi-urban areas and targets customers who are salaried as well as self-employed women. Ujjivan

provides a range of customized products to its customers like business loan, family loan, education loan,

housing loan, etc. It has created a niche segment in the microfinance sector as an urban-based MFI. As

on March 31, 2014, it has 350 branches in 22 states across India reaching out to more than 13 lakh

customers.

During FY14 (refers to the period April 1 to March 31), Ujjivan registered a PAT of Rs.55 crore

(FY13:Rs.33.9 crore) on a total income of Rs.357.7 crore (FY13: Rs.233.9 crore). During Q1FY15, Ujjivan

made a PAT of Rs.12.6 crore on total income of Rs.113.1 crore.



174

Brief Rationale

Analyst Contact

Name: Karthik Raj K

Tel: 080-4165 4529











175

Brief Rationale

October 08, 2014


Saboo Sodium Chloro Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Single B Plus) Reaffirmed


Reaffirmed


Rating Rationale

The ratings continue to remain constrained on account of the relatively small scale of operations of Saboo Sodium

Chloro Limited (SSCL) in the highly competitive consumer food industry coupled with its financial risk profile

marked by fluctuating profitability and stressed liquidity position and implementation risk associated with its on-

going projects which are predominantly debt funded, including the project related to construction of resort nearby

Jaipur. The ratings further remain constrained on account of the sensitivity of the company’s profitability to

fluctuations in the raw material prices and SSCL’s exposure to group companies by way of corporate guarantees

and significant inter group transactions and investments.

The ratings, however, continue to draw strength from the long standing experience of the promoter with its

established track record of operations of more than two decades in the industry and location advantage by way of

proximity to the raw material sources as well as established brand name. The ratings further derive strength from

its comfortable solvency position.

Background

Jaipur-based (Rajasthan) SSCL was incorporated in November 1993 and is a part of the Saboo group (SG). The

group is promoted by Mr Girdhar Saboo and his family members and has interests in refining of salt, trading of

spices, processing of guar gum, power generation and hospitality.

SSCL is listed on Bombay Stock Exchange since December 2000. SSCL is presently engaged in the refining and

trading of salt and sells under the brand name “Surya Salt”. The company has two refining facilities having a total

installed capacity of 2.50 lakh tonnes per annum located at Nawa (Rajasthan) and Gandhidham (Gujarat). SSCL

produces both industrial as well as edible grade salts through its two plants. SSCL has established reputed clientele

base for industrial salt which includes Nestle India Limited, Hindustan Unilever Limited, GSK Consumer and Proctor

& Gamble amongst its industrial customers.

Furthermore, SSCL has set up two solar plants with a total capacity of 1.30 Mega Watt (MW), one is situated at

Rajgarh, Madhya Pradesh (1.05 MW), for which the company has entered into Purchase Power Agreement (PPA)

for 25 years with Madhya Pradesh State Electricity Board. During FY14 (refers to the period April 01 to March 31),

SSCL commissioned its second solar plant at Nawa, Rajasthan (0.25 MW) used entirely for captive consumption.

During FY14, SSCL has reported a total operating income of Rs.18.64 crore (FY13: Rs.16.55 crore), with a PAT of Rs.-

0.22 crore (FY13: Rs.0.11 crore).



176

Brief Rationale

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612













factors.

Tel:-

177

Brief Rationale

October 08, 2014


Spectrum Foods Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks


(Single B) Reaffirmed


Rating Rationale

The rating continues to remain constrained on account of the relatively small scale of operations of Spectrum

Foods Limited (SFL) in the highly competitive consumer food industry coupled with its financial risk profile marked

by fluctuating profitability and elongated operating cycle. The rating further remains constrained on account of

implementation risk associated with its on-going projects which are pre-dominantly debt-funded and its exposure

to group companies by way of corporate guarantees and significant inter group transactions and investments.

The rating, however, continues to draw strength from the long standing experience of the promoter in the salt

refinery business, established brand name and location advantage of the project being implemented in proximity

to raw material producing region and its moderately leveraged capital structure.

SFL’s ability to successfully complete the envisaged project in a timely manner without any cost overrun and ability

to achieve the envisaged level of sales and profitability are the key rating sensitivity.

Background

Jaipur-based (Rajasthan) SFL was incorporated as Spectrum Leasing and Finance Limited in February 1994 as a part

of Saboo Group (SG). The name was subsequently changed to the present name in November 1998. The group is

promoted by Mr Girdhar Saboo and his family members and has interests in refining of salt, trading of spices,

processing of guar gum, power generation and hospitality.

SFL is listed on Bombay Stock Exchange since February 2001. SFL is presently engaged in the trading of salt that is

produced by its group company, Saboo Sodium Chloro Limited (SSCL, rated ‘CARE B+’, ‘CARE A4’) and sells under

the brand name “Surya Salt”. The company is also engaged in the trading of spices and share trading.

During FY14 (refers to the period April 1 to March 31), SFL has reported a total operating income of Rs.1.55 crore

(FY13: Rs.0.27 crore), with a PAT of Rs.0.04 crore (FY13: Rs.0.01 crore).

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612





Tel:-


178

Brief Rationale










factors.

179

Brief Rationale

October 08, 2014

CARE assigns ‘CARE AA+’ Rating To Housing and Urban Development Corporation Ltd

borrowing programme for FY15/Reaffirms The Outstanding Ratings Assigned To The Bank

Facilities And Instruments Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 10,000

CARE AA+




Total Bank Facilities 10,500

Fixed Deposit Programme 3,000 CARE AA+ (FD)

(Double A Plus [Fixed Deposit])

Reaffirmed

Long-term Bonds (05-06) 809 CARE AA+


Long-term Bonds (06-07) 640.50 CARE AA+


Long-term Bonds (11-12) 5,667.40 CARE AA+






Long-term Bonds (14-15) (including sub-limit of Rs. 2,000 crore as Subordinated debt)

6,750 CARE AA+

(Double A Plus) Assigned

Short term debt/Commercial Paper

2,000 CARE A1+


Long-term Bonds (02-03) 210 - Withdrawn#

Long-term Bonds (03-04) 1,036.40 - Withdrawn#

# Rating has been withdrawn since the bond issue has been repaid in full and there is no outstanding under the

said issue.

Rating Rationale

The ratings of the bank facilities & instruments of Housing and Urban Development Corporation Ltd (HUDCO)

continue to factor in its strong parentage (100% ownership by Government of India [GoI]), the implicit GoI support

given its Mini-Ratna status, healthy capitalization, adequate liquidity profile and diversified resource profile.

However, these strengths are partially offset by deterioration in asset quality and significant exposure to

vulnerable sectors of power and real estate.

Going forward, the ability of HUDCO to improve its asset quality and sustain profitable business growth while

maintaining its liquidity and capital adequacy position would be the key rating sensitivities.



180

Brief Rationale

Background

HUDCO was set up in 1970 as a 100% GoI-owned developmental financial institution mandated to provide long

term finance for social housing & core urban infrastructure development in the country. It is a public financial

institution under section 4A of the Companies Act. Furthermore, HUDCO is also a housing finance company

registered with National Housing Bank (NHB). The corporation was conferred ‘Mini–Ratna’ status in August 2004

resulting in greater operational and financial flexibility.

HUDCO’s lending is mainly focused towards state undertakings in the housing or infrastructure segment with

majority of loans backed by state government guarantees and/or budgetary allocation through state sponsored

programmes. The corporation also lends to infrastructure projects of private sector entities and the same

constituted approximately 14% of the total lending portfolio of HUDCO as on March 31, 2014.

Presently, HUDCO operates through a corporate office along with 21 regional offices and 11 development offices.

During FY14 (refers to the period April 01 to March 31), HUDCO reported a net profit of Rs.726 crore on a total

income of Rs.2,994 crore. Total loan portfolio stood at Rs.28,034 crore as on March 31, 2014. The gross NPA ratio

and net NPA ratio stood at 6.76% and 2.52%, respectively, as on March 31, 2014. During Q1FY15, the company

registered a net profit of Rs.111 crore on a total income of Rs.759 crore.

Analyst Contact

Name: Mr Gaurav Dixit

Tel: 011-45333235













factors.

181

Brief Rationale

October 08, 2014

CARE reaffirms the rating to the Upper Tier II and perpetual bonds of

State Bank Of Mysore Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Upper Tier II Bonds 640 CARE AAA (Triple A)

Reaffirmed

Perpetual Bonds 260 CARE AAA (Triple A)

Reaffirmed

Rating Rationale

The rating factors in the strong parentage in State Bank of India (SBI, rated ‘CARE AAA’) with whom the bank

enjoys operational and managerial synergies. The ratings also takes into account the adequate capitalization levels

and satisfactory resource profile with comfortable share of low-cost CASA deposits. The rating also takes note of

the deterioration in asset quality and subdued profitability in FY14 (refers to the period April 1 to March 31).

SBI’s parentage and support along with asset quality and profitability would be the key rating sensitivities.

Background

State Bank of Mysore (SBM) was established in the year 1913 as Bank of Mysore Ltd under the patronage of the

erstwhile Government of Mysore. Subsequently, in March 1960, the Bank became an Associate of the State Bank

of India. SBI is the main promoter holding 90% of the shares as on June 30, 2014. SBM had 944 branches as on

March 31, 2014 out of which more than 50% branches are in rural and semi urban areas. The bank is fully on Core

Banking Platform since January 1, 2006. Cauvery Kalpatharu Grameena Bank (CKGB), a Regional Rural Bank (RRB),

is sponsored by SBM. It serves the districts of Mysore, Hassan, Chamarajanagar, Tumkur, Bangalore Rural and

Ramanagara.

During FY14, SBM registered a PAT of Rs.274 crore (FY13: Rs.416 crore) on total income of Rs.6,895 crore

(FY13:Rs.6,561 crore). During Q1FY15, SBM made a PAT of Rs.75 crore on a total income of Rs.1,868 crore.

Analyst Contact

Name: Karthik Raj K

Tel: 080-4165 4529







182

Brief Rationale







183

Brief Rationale

October 08, 2014


Bell Flower Trading Company Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from

17.90)

CARE BB


Short-term Bank Facilities 0.10 CARE A4

(A Four) Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Bell Flower Trading Company Private Limited (BELL)

continues to be constrained by the relatively modest scale of operations, project execution risk

,moderately leveraged capital structure and debt coverage indicators. The ratings further continue to be

constrained by vulnerability of profit margins to volatility in the raw material prices and presence in the

highly competitive and fragmented industry.

The ratings continue to derive strength from the experienced promoters, established track record in the

industry and steady growth in the scale of operations along with moderate order book position.

Ability of BELL to scale up its operations while maintaining its profitability margins amidst stiff

competition and efficient management of the working capital cycle are the key the rating sensitivities.

Background

Incorporated in 1992 promoted by the Agarwala family, Bell Flower Trading Co. Private Limited (BELL) is

engaged in the business of undertaking the fabric embroidery (on job work as well as own sales basis)

and also has a fabric dyeing, printing and processing unit (completed the processing unit in September

2013). The company has an annual fabric embroidery capacity of 40 lakh meters per annum (LMPA) and

has fabric processing & printing capacity of 630 LMPA as on August 31, 2014 at its plant located at MIDC

Industrial Area, Dombivali (Mumbai).

During FY14 (provisional, refers to the period April 01 to March 31), BELL reported total operating

income of Rs.84.29 crore (vis-à-vis of Rs.26.29 crore in FY13) and PAT of Rs.1.75 (vis-à-vis of Rs.0.92



184

Brief Rationale

crore in FY13). Furthermore, the company has achieved the total operating income of around Rs.47.78

crore till August 31, 2014.

Analyst Contact Name: Nitesh Dhoot Tel: 022- 6754 3442 Email: [email protected]






185

Brief Rationale

October 08, 2014


Deva India Tex Fab Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B Minus) Reaffirmed


Reaffirmed


Rating Rationale

The ratings continue to remain constrained on account of the relatively small scale of operations of Deva India Tex

Fab Private Limited (DTPL) in the highly competitive and fragmented textile industry and its financial risk profile

marked by low profitability, moderately leveraged capital structure and working capital intensive nature of

operations. The ratings further remain constrained on account of the sensitivity of the company’s profitability to

fluctuations in the raw material prices.

The ratings, however, continue to draw strength from the long standing experience of the management in the

textile industry and location advantage by way of proximity to the raw material as well as customers.

DTPL’s ability to increase its scale of operation while improving profitability in light of the volatile raw material

prices and efficient management of working capital are the key rating sensitivities.

Background

Bhilwara-based (Rajasthan) DTPL, incorporated in February 2005, is promoted by Mr Rajendra Prasad Agrawal

along with his son, Mr Devashish Goyal. However, DTPL started its commercial operation from June, 2009 onwards

with trading of finished fabric. The promoters has around one decade of experience in the textile industry. It also

commenced the manufacturing of grey fabrics on job work basis from April 2010 onwards. The manufacturing

facility of DTPL is located at Bhilwara with total of 32 sulzar looms having an installed capacity of 36 Lakh Meters

Per Annum (LMPA) as on March 31, 2014. Bhilwara is one of the largest textile clusters in India and majority of

these industries are engaged in the manufacturing synthetic yarn. DTPL’s presence in the textile manufacturing

region results in benefit derived from continuous business from the textile manufacturers, low transportation cost

both on transportation and storage, easy availability of raw materials as well as skilled/unskilled labour.

During FY14 (refers to the period April 1 to March 31), DTPL has reported a total operating income of Rs.29.53

crore (FY13: Rs.25.59 crore), with a PAT of Rs.0.01 crore (FY13: Rs.0.08 crore).

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612



Tel:-


186

Brief Rationale












factors.

187

Brief Rationale

October 08, 2014


Unidrug Innovative Pharma Technologies Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 5.50) CARE BB-

(Double B minus) Re-affirmed


Re-affirmed

Total 12.50

Rating Rationale

The ratings assigned to the bank facilities of Unidrug Innovative Pharma Technologies Ltd. (UIPTL) continues to

remain constrained on account of its presence in the limited therapeutic segments leading to small scale of

operations and financial risk profile marked by stagnant turnover owing to capacity constraints, low profit margins

and weak debt coverage indicators. The ratings are further constrained on account of susceptibility of its operating

margins to raw material price fluctuation, foreign exchange fluctuation and stretched liquidity position. The ratings

also take into account the implementation risk associated with debt funded capex for upgradation of machinery

owing to pending financial closure.

The ratings, however, take comfort from the long experience of the promoters in the pharmaceutical industry,

coupled with reputed and diversified clientele.

The ability of UIPTL to improve its scale of operations by completing project successfully within the envisaged time

and cost parameters, thereby, increasing its product line and improvement inthe overall financial risk profile with

improvement in profit margins, capital structure and working capital management remains the key rating

sensitivities.

Background

UIPTL was incorporated in March 1987 as Private Limited Company. UITPL promoted by Mr Jainesh Jain, is engaged

in the business of manufacturing Active Pharmaceutical Ingredients (APIs) for the Antiprotozole segment. UIPTL

supplies its APIs to variety of domestic formulators (mainly private pharmaceutical companies) and also sells its

products internationally by exporting to less regulated markets such as Argentina, Bangladesh, and African

Countries from its GMP certified manufacturing facility located in Indore (Madhya Pradesh) with an installed

capacity of 300 MTPA of APIs as on March 31, 2014. UITPL caters to the segment of Protozoan infection which

leads to diseases such as Malaria, Amoebiasis (mild diarrhoea to dysentery with blood and mucus), and Giardiasis

(beaver fever).

During FY14 (refers to the period April 1 to March 31), UIPTL reported a TOI of Rs.23.81 crore and PAT of Rs.0.20

crore as against TOI of Rs.24.19 crore and PAT of Rs.0.15 crore during FY13.

Furthermore, during H1FY15 UIPTLL has achieved turnover of Rs. 15 crore.

Analyst Contact

Name: Mr Nitin Jha

Tel: 079-4026 5656





188

Brief Rationale












factors.

189

Brief Rationale

October 08, 2014


K.S. Cot Fiber Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from Rs.1.83) CARE B

(Single B) Re-affirmed

Long-term /Short-term Bank Facilities 7.00 CARE B/CARE A4 (Single B/A Four)

Re-affirmed

Total 7.54

Rating Rationale

The ratings assigned to the bank facilities of KS Cot Fiber Pvt Ltd (KSCPL) continue to remain constrained on

account of weak financial risk profile marked by low profit margins as well as cash accruals, leveraged capital

structure and weak debt coverage indicators. The ratings further continue to be constrained by its presence in

lowest segment of textile value chain in highly fragmented industry with low entry barriers and seasonality

associated with the procurement of raw material resulting into working-capital intensive nature of operations.

The ratings, however, continue to draw strength from the wide experience of the partners in the cotton industry

and location advantage in terms of proximity to the cotton seed growing regions in Madhya Pradesh. The ratings

factor in the increase in scale of operations during FY14 (refers to the period April 1 to March 31).

The ability of KSCPL to increase its scale of operations thereby improving its profitability and better working capital

management in light of the competitive nature of the industry remain the key rating sensitivities.

Background

KSCPL was incorporated in June 2008 by Mr Kailashchandra Agrawal and Mr Hemant Kumar Agrawal as a private

limited company. KSCPL is engaged into the business of cotton ginning and pressing. KSCPL deals in ‘Shankar 6’

type of cotton which is being sourced through local farmers from Madhya Pradesh and Maharashtra. KSCPL

operates from its sole manufacturing plant located at Sendhwa (Madhya Pradesh) which has an installed capacity

of 200 bales per day for cotton bales and 330 quintal per day for cotton seeds as on March 31, 2014.

During FY14 (refers to the period April 1 to March 31), KSCPL reported a TOI of Rs.47.83 crore and PAT of Rs.0.20

crore as against TOI of Rs.45.18 crore and PAT of Rs.0.21 crore during FY13. Further, during H1FY15, KSCPL has

achieved turnover of Rs.17 crore.

Analyst Contact Name: Nitin Jha Tel: (079) 40265656 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.



190

Brief Rationale


191

Brief Rationale

October 08, 2014


K. S. Cotex (I) Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from Rs.1.79) CARE B


Long-term /Short-term Bank Facilities 6.74 CARE A4 (A Four)

Re-affirmed

Total 7.87

Rating Rationale

The ratings assigned to the bank facilities of KS Cotex (I) Pvt Ltd (KCIPL) continue to remain constrained on account

of weak financial risk profile marked by leveraged capital structure and weak debt coverage indicators. The ratings

also continue to be constrained by its presence in lowest segment of textile value chain in highly fragmented

industry with low entry barriers and seasonality associated with the procurement of raw material resulting into

working-capital intensive nature of operations.

The ratings, however, continue to draw strength from the wide experience of the promoters in the cotton industry

and location advantage in terms of proximity to the cotton seed growing regions in Madhya Pradesh. The ratings

also factor in increase in total operating income coupled with marginal improvement in profit margin and cash

accruals during FY14 (refers to the period April 1 to March 31).

The ability of KCIPL to increase its scale of operations, thereby improving its profitability and better working capital

management in light of the competitive nature of the industry remain the key rating sensitivities.

Background

KCIPL was incorporated in April 2011 by Mr Hemant Kumar Agrawal and Mr Amar Kumar Agrawal as a private

limited company with an objective for setting up of new ginning and pressing unit. KCIPL deals in ‘Shankar 6’ type

of cotton which is being sourced through local farmers from Madhya Pradesh as well as Maharashtra. KCIPL

operates from its sole manufacturing plant located at Malkapur (Madhya Pradesh) with an installed capacity to

process 200 cotton bales per day and 330 quintal of cotton seeds per day as on March 31, 2014.

During FY14, KCIPL reported a TOI of Rs.33.58 crore and PAT of Rs.0.17 crore as against TOI of Rs.29.82 crore and

PAT of Rs.0.13 crore during FY13. Furthermore, during H1FY15, KCIPL has achieved turnover of Rs. 12 crore.

Analyst Contact Name: Nitin Jha Tel: (079) 40265656 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.



192

Brief Rationale


193

Brief Rationale

October 08, 2014

CARE reaffirms the rating assigned to various bond issue of

Damodar Valley Corporation Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bond Issue (Series II) 4,400 CARE AAA (SO) [Triple A (Structured Obligation)]

@

Reaffirmed

Long-term Bond Issue (Series III) 2,600 Reaffirmed @

Based on credit enhancement in the form of ‘unconditional and irrevocable guarantee’ of Government of India, supported by a

structured payment mechanism.

Rating Rationale

The rating is based on the credit enhancement in the form of unconditional and irrevocable guarantee provided by

Government of India (GoI) for the said bond issues.

Background

DVC, a multipurpose river valley project, was set up as a Statutory Corporation under a Special Act of Parliament,

Damodar Valley Corporation Act, 1948 (DVC Act). The Government of India (GoI), the Government of West Bengal

(GoWB) and the Government of Bihar (GoB) jointly contributed to the capital of DVC. With bifurcation of erstwhile

State of Bihar in Bihar and Jharkhand, the share capital of GoB is to be taken over by the Government of Jharkhand

(GoJ).

The functions of DVC are power generation (both hydel and thermal), distribution and transmission, flood control,

irrigation, water supply, drainage, eco-conservation & afforestation, and social & economic upliftment of the

Damodar Valley region, spread across 24,250 square kilometres in Jharkhand and West Bengal.

As on June 30, 2014, DVC had a generation capacity of 6,357 MW. The corporation supplies power through high

tension lines (33KV and above) to industrial consumers, State Power Utilities and Railways.

Credit enhancement for the outstanding bond issues

Unconditional and irrecoverable guarantee from GoI covering entire rated amount

The bond issues are backed by unconditional and irrevocable guarantee for servicing of the entire bond issue (both

principal amount as well as the accrued interest) from GoI, through the Ministry of Power.

A trustee-monitored payment mechanism is in place to facilitate timely payment of the interest and principal

obligations on the bond issue.

Analyst Contact


Tel: 033-40181609

Mobile: +91 9051730850






194

Brief Rationale










factors.

195

Brief Rationale

October 08, 2014

CARE revises and assigns ‘CARE A3+’ rating to the Bank Facilities of

Saket Education Society

Rating

Facilities Amount (Rs cr)

(Rs. crore)

Ratings1 Remarks



CARE BBB+

(Triple B Plus)

Revised from CARE BBB

(Triple B)


(A Three Plus)

Assigned


Rating Rationale

The revision in the rating for the bank facilities of Saket Education Society (SES) takes into account the

improvement in financial risk profile marked by consistent growth in income, improvement in surplus margin and

capital structure in FY14 (refers to the period April 01 to March 31). The rating also factors in the experienced

promoters and management team, long operational track record of the school along with the established brand

name and modern school infrastructure. However, the rating is constrained by the on-going debt-funded capital

expenditure project at Raj Nagar Extension, increasing competition from other schools and regulatory risk

associated with education sector in India. The ability of the firm to timely complete the ongoing project at Raj

Nagar Extension and to enrol the projected number of students would be the key rating sensitivities.

Background

Incorporated in 2001, Saket Education Society (SES) was promoted by Mr Sudarshan Kumar Bansal for developing

and operating education institutes. SES operates ‘Delhi Public School (DPS)’ in Indirapuram, Ghaziabad under an

agreement with The Delhi Public School Society (DPS Society). The agreement stands valid till academic year 2016-

17. The school provides primary and secondary education from Nursery to XII standard and is affiliated with CBSE

(Central Board of Secondary Education). SES has gradually expanded the scale of operations over the years and as

on August 30, 2014, had a total student strength of 6,516 and teacher strength of 319.

SES reported a surplus of Rs.15.23 crore on the total income of Rs.55.90 crore in FY14 as against a surplus of

Rs.8.50 crore on the total income of Rs.47.97 crore in FY13. Based on the unaudited financials, SES has reported a

total income of Rs.9.11 crore in Q1FY15.



196

Brief Rationale

197

Brief Rationale

Analyst Contact Name: Amit Jindal Tel: 011-45333242 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.

Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications

Disclaimer










factors.


198

Brief Rationale

October 08, 2014


Renew Wind Energy (Rajkot) Pvt Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



CARE BBB+

[Triple B Plus]

Revised from CARE BBB

[Triple B]


Rating Rationale

The revision in the rating assigned to the bank facilities of Renew Wind Energy (Rajkot) Pvt Ltd (RWER) takes into

account signing of Power Purchase Agreements (PPA) for the balance 19.5 MW capacity, generation track record of

2.5 years of Jasdan project and more than 1 year for Vaspet project, satisfactory operational and financial

performance during FY14 (refers to the period April 01 to March 31) and Q1FY15 and presence of debt service

reserve account (DSRA) for two quarter of debt servicing. The rating continues to derive strength from the

experienced and resourceful promoters of RWER, long-term offtake arrangement through PPAs for the entire

capacity, diversified revenue profile with relatively lower counterparty risk, experienced O&M contractors,

favorable policy framework and demand outlook for renewable energy sector and corporate guarantee provided

by Renew Power Ventures Pvt Ltd (RPVPL) to cover shortfall in revenue from Renewable Energy Certificates (RECs)

and Generation Based Incentives (GBI) for Jasdan project.

The rating is, however, constrained by operational performance of the projects being highly dependent on climatic

conditions and wind patterns, dependence on GBIs and RECs for part of revenue and moderately leveraged capital

structure.

Going forward, the generation at envisaged Plant Load Factor (PLF), timely receipt of payment against the sale of

power from the offtakers and GBI/RECs shall remain the key rating sensitivities.

Background

Renew Wind Energy (Rajkot) Pvt Ltd (RWER), incorporated in August 2011, is a Special Purpose Vehicle (SPV)

promoted by Renew Power Ventures Pvt Ltd (RPVPL). RPVPL in turn is promoted by GS Wyvern Holdings Limited

(GS), which is an investment arm of the Goldman Sachs group.

RWER has implemented two wind power projects; at Jasdan (Gujarat) and Vaspet (Maharashtra) with an installed

capacity of 25.2 MW and 45 MW respectively. The Jasdan project commenced commercial operations from all its

12 Wind Turbine Generators (WTGs) aggregating capacity of 25.2 MW on March 29, 2012 while the Vaspet project

commissioned its 30 WTGs having aggregate capacity of 45 MW in phases (during October 2012 – August 2013).



199

Brief Rationale

For Jasdan project, the company has entered into PPA for 23.1 MW capacity with Gujarat Urja Vikas Nigam Ltd

(GUVNL; rated CARE A/CARE A1) for a period of 25 years while the PPA for the balance 2.1 MW is signed with

Philips Electronics India Ltd (Philips) for a period of 13.5 years. For Vaspet project, the company has entered into

PPAs for the entire 45 MW capacity with Maharashtra State Electricity Distribution Company Ltd (MSEDCL, rated

CARE BBB).

For FY14 (provisional) (refers to the period April 1 to March 31), RWER reported a PAT of Rs.9.01 crore on a total

operating income of Rs.78.50 crore. For Q1FY15 (provisional), the company reported PBT of Rs.8.90 crore on a

total operating income of Rs.24.87 crore.

Analyst Contact

Name: Jatin Babbar

Tel: 011-45333246













factors.

200

Brief Rationale

October 08, 2014

CARE revises and reaffirms rating assigned to bank facilities of

Mayur Uniquoters Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 45.62 CARE AA-

(Double A Minus) Revised from CARE A+

[Single A Plus]



Long term/ Short term Bank Facilities 17 CARE AA-/ CARE A1+ (Double A Minus)/ (A

One Plus)

Revised from CARE A+/ CARE A1+

[Single A Plus]/ [A One Plus]


Rating Rationale

The revision in the long-term rating of Mayur Uniquoters Ltd (MUL) takes into account growth in its scale of

operations across each of its end-use segments along with an improvement in profitability and cash inflow from

operations during FY14 (refers to the period April 01 to March 31) and Q1FY15. The revision in the long-term rating

also takes into account infusion of long term funds in the company during April 2014 in the form of Compulsory

Convertible Participating Preference Shares (CCPPS) by an institutional investor to meet future expansion plans.

The ratings continue to derive strength from its comfortable leverage, liquidity and debt coverage indicators. The

ratings are further underpinned by the promoter’s vast experience in the artificial leather industry, MUL’s strong

market position in the organized segment of the artificial leather industry along with integrated operations, wide

product portfolio with diverse applications, product approvals in place from leading domestic & global automobile

OEMs (Original Equipment Manufacturers) and established clientele in the footwear segment.

The long-term rating, however, continues to remain constrained by the susceptibility of its margins to volatility in

raw material prices which are derivatives of crude oil, foreign currency fluctuation risk and its presence in a highly

fragmented and competitive industry.

The ability of MUL to successfully implement its ongoing and planned expansion projects within the envisaged cost

and time parameters, significantly grow its scale of operations while maintaining its healthy profitability,

comfortable leverage and debt coverage indicators would remain the key rating sensitivities.

Background

Incorporated in 1992 at Jaipur, Rajasthan, MUL is in the business of making Poly Vinyl Chloride (PVC) coated fabric

which is more commonly known as Synthetic Leather or Artificial Leather. MUL commenced operations in 1994.

Artificial leather is a substitute for genuine leather and has wide application in automobiles, footwear, furnishing,



201

Brief Rationale

fashion items, accessories, etc. As on March 31, 2014 MUL had two manufacturing facilities located near Jaipur

with an aggregate installed capacity for production of 294 lakh Linear Meters Per Annum (LMPA) of artificial

leather of different varieties. MUL has integrated backwards to make knitted fabrics during FY13. Sale of PVC

coated fabric contributes more than 90% of MUL’s revenues. MUL has diversified clientele across industries such

as automobile, footwear, furnishing, fashion items, etc.

During April 2014, MUL has raised long term resources aggregating to Rs.69,99,95,160 (sixty nine crore, ninety nine

lakhs, ninety five thousand, one hundred and sixty) through issuance of CCPPS on preferential basis to M/s West

Bridge Crossover Fund, LLC (WBCF) with an objective to fund its future growth and expansion plans.

As per the audited results for FY14, MUL earned a PAT of Rs. 56.80 crore on a total operating income of Rs.471.45

crore as against a PAT of Rs.43.63 crore on a total operating income of Rs.384.12 crore in FY13. Furthermore, as

per the unaudited results for Q1FY15, MUL has registered a TOI of Rs.125.86 crore (Q1FY13: Rs.106.69 crore) with

a PAT of Rs.14.98 crore (Q1FY13: Rs. 11.49 crore).

Analyst Contact

Name: Mr Vishal Joshi

Tel: 079-40265656













factors.

202

Brief Rationale

October 08, 2014


Chiripal Charitable Trust Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks


(Reduced from 12.18) CARE B+

(Single B Plus) Revised form CARE D

(Single D)

Rating Rationale

The revision in the rating assigned to the bank facilities of Chiripal Charitable Trust (CCT) is primarily on account of clear track record of its debt repayments over the past six months, increase in total operating income and gross cash accruals and improvement in debt coverage indicators during FY14 (refers to the period April 1 to March 31). However, the rating continues to remain constrained by its modest enrollment at Shanti Business School (SBS), leveraged capital structure and high competition from other established colleges & schools and high regulatory restriction in the education sector. The rating, however, continues to derive strength from the wide experience of the promoters in the education sector, the group’s presence in diversified industrial segments in Ahmedabad and CCT’s diversified source of revenue on account of presence across both schooling and management education. The ability of CCT to improve its capital structure along with increase in the scale of operations and improvement in enrolment ratio are the key rating sensitivities.

Background Ahmedabad-based CCT was set up by the renowned Chiripal group of companies on January 25, 1985 as a corporate citizenship initiative. Established in 1972 by Mr VedPrakash Chiripal, the Chiripal group is a multi-product textile house located at Ahmedabad and is involved in processing, weaving, knitting and petrochemicals business. Presently, there are two institutes running under CCT, namely, Shanti Asiatic School (SAS) and SBS. SAS was started in June 2009 and currently provides education through Nursery to Standard XII. SAS has its affiliation with Central Board of Secondary Education (CBSE) since 2011. SBS is an AICTE approved business school launched in July 2010 and offers Post-Graduate Diploma in Management (PGDM) and Post-Graduate Diploma in Management in Communications (PGDMC). During FY14, CCT reported a net surplus of Rs.1.75 crore on a Total Operating Income (TOI) of Rs.20.03 crore as against a deficit of Rs.2.87 crore on a TOI of Rs.16.56 crore in FY13.

Analyst Contact

Name: Mohit Agrawal

Tel: 079-40265612











203

Brief Rationale






factors.

204

Brief Rationale

October 08, 2014

CARE suspends ratings assigned to bank facilities of

Golden Floor Furnishing Private Limited

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of

Golden Floor Furnishing Private Limited. The ratings have been suspended as the company has

not furnished the information required by CARE for monitoring of the ratings.

Analyst Contact

Name: Mr Achin Nirwani

Tel: 011- 45333228













factors.


205

Brief Rationale

October 08, 2014


Manglam Oil Industries

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Mangalam Oil Industries.

The rating has been suspended as the firm has not furnished the information required by CARE for monitoring of

the rating.

Analyst Contact

Name: Mr Nitin Jha

Tel: 079-4026 5656

Mobile: +91 8511190080




Disclaimer CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. .

206

Brief Rationale

October 07, 2014


Arkade Developers Private Limited

Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks




Rating Rationale

The rating assigned to the bank facilities of Arkade Developers Private Limited (ADPL) is constrained by funding and

project execution risk due to significant dependence on customer advances along with marketing risk. The rating is

further constrained by the cyclical nature of the real estate industry.

These factors offset the benefits derived from the experience of management and established track record and

locational advantage.

Ability of ADPL to complete the projects undertaken as per the schedule without any cost or time over run and

achieve sales at envisaged rates are the key rating sensitivities.

Background

Incorporated in 1986, Arkade Developers Private Limited (ADPL) is the flagship company of the Arkade group

which primarily is into development of residential real estate in suburbs of Mumbai. Presently the company is

undertaking two redevelopment projects viz. ‘Jeevan Sarita’ (JS; 3 wings of 7 floors each comprising of 63 flats out

of which 23 are available for sale) located in Ville Parle and ‘Bhagirath Condominium’ (BC; 22 floor building,

comprising of 79 flats out of which 33 flats are available for sale) located in Goregaon (East). The total estimated

cost of both the projects is Rs.94.15 crore, to be funded by promoter contribution, debt and customer advances in

0.26:0.36:0.38 proportionately.

Analyst Contact

Name: Nitesh Dhoot

Tel: 022-6754 3442







207

Brief Rationale

Disclaimer:










factors.

208

Brief Rationale

October 07, 2014

CARE Assigns ‘CARE BBB+ (FD)’ rating to the fixed deposit issue of

Sardar Sarovar Narmada Nigam Ltd. Rating

Instrument Amount

(Rs. crore) Rating

1 Remarks

Medium Term Instrument – Fixed Deposit

1000.00 CARE BBB+ (FD)

[Triple B Plus (Fixed Deposit)]

Assigned

Total Instruments 1000.00

Rating Rationale

The rating assigned to the fixed deposit issue of Sardar Sarovar Narmada Nigam Ltd. (SSNNL) derives strength from

the strong parentage and demonstrated support of Government of Gujarat (GoG). The rating also factors in the

fact that substantial amount of debt is guaranteed by GoG along with stable reduction in the debt level of SSNNL

over the years with continued financial support of GoG and strategic importance of the project.

The rating is, however, constrained on account of delay in project completion, risk associated with receipt of

necessary regulatory approvals and clearances, high debt level vis-à-vis revenue stream of SSNNL leading to high

level of dependence on GoG.

Continued explicit and implicit support of GoG to SSNNL shall be the key rating sensitivity.

Background

SSNNL was incorporated in March 1988, as a Special Purpose Vehicle (SPV) - wholly owned by GoG for the

implementation of the Sardar Sarovar Project (SSP). SSP is an inter-state, multi-purpose project, being

implemented with the participation of four states viz. Gujarat (designated as the implementing state), Madhya

Pradesh, Maharashtra and Rajasthan.

The work for construction of dam, which was originally planned to commence from 1994 and slated to be

completed by 2000, was suspended from May 1995 due to the writ petition filed by Narmada Bachao Andolan

(NBA). The Supreme Court, vide its judgement in October 2000, had quashed the writ petition and allowed SSNNL

to raise the dam height in tranches of 5 meters with requisite approval from the Narmada Control Authority (NCA).

In accordance with the judgement, SSNNL has already completed the work to raise the dam height to 121.92

meters. In June 2014, SSNNL has received approval from the Narmada Control Authority to raise the dam’s height

from 121.92 meters to 138.68 meters and work has started to place additional doors on the dam.

The delay in implementation of the project has inflated the project cost from Rs.13,181 crore at 1991-92 price

levels as approved by the Planning Commission to Rs.23,103 crore at 1996-97 price levels. SSNNL has already

incurred an expenditure of around Rs.43,000 crore on the project up to March 31, 2014.

The project envisages two power houses having total generation capacity of 1,450 MW viz. canal head power

house (CHPH) having capacity of 250 MW and river bed power house (RBPH) which has six turbine generators,

each having total capacity of 200 MW, with aggregate generating capacity of 1,200 MW. While CHPH got

commissioned in a phased manner between August 2004 and December 2004, RBPH was similarly commissioned

between February 2005 and June 2006. The utilisation of power project depends on the availability of water.


publications


209

Brief Rationale

During FY13 (refers to the period April 1 to March 31), SSNNL reported a total operating income of Rs.388.95 crore

(FY12: Rs.403.64 crore) with a PAT of Rs.249.77 crore (FY12: PAT of Rs.274.65 crore). As per the provisional results

for FY14, SSNNL has reported a total operating income of Rs.461.22 crore with a PAT of Rs.314.67 crore.

Analyst Contact Name: Hardik Shah Tel # 079-40265620 Email: [email protected]

CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments.

210

Brief Rationale

October 07, 2014

CARE assigns ‘CARE BBB-’ rating to the bank facilities of

GMR Bajoli Holi Hydropower Private Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities – Term Loans 1,380 CARE BBB-

[Triple B Minus] Assigned

Long-term Bank Facilities-Non-fund Based 25 CARE BBB-

[Triple B Minus] Assigned


Rating Rationale

The rating assigned primarily draws strength from GMR Bajoli Holi Hydropower Pvt Ltd (GBHHPL) being a part of

the GMR group, a leading infrastructure player. The rating also factors in the project’s receipt of all key approvals,

healthy generation potential at the project site given the well-established hydrology and snow fed perennial

nature of the Ravi river, satisfactory offtake arrangement and counter party credit risk and stong management

expertise. The rating is, however, constrained by high execution risk marked by long gestation period and

possibility of time and cost overruns given the nascent stage of project construction and civil contract awaded on

item rate basis, limited expertise of promoters in hydropower projects and high project cost outlay.

Timley completion of the project within envisaged cost, execution of firm and long term Power Purchase

Agreement (PPA) with off-takers having sound financial risk profile at economically beneficial tarfiff rates and

timely receipt of payments would be the key rating sensitivities.

Background

GMR Bajoli Holi Hydropower Pvt Ltd (GBHHPL), incorporated on October 1, 2008, is a special purpose

vehicle (SPV) promoted by the GMR group under its energy subsidiary, GMR Energy Limited (GEL rated

CARE BBB (SO)) for implementing 180 MW (3 x 60 MW) hydro power plant (run-of-river with pondage)

on the upper reaches of river Ravi, which belongs to the Indus river system in Chamba district of

Himachal Pradesh. The project was allotted to GEL by the Government of Himachal Pradesh (GoHP) in

July 2007 on Build, Own, Operate and Transfer (BOOT) basis through international competitive bidding

process based on payment of highest one time up-front premium of Rs.164 crore. The project is

awarded for a concession period of 40 years post COD.

GBHHPL has spent Rs.312.9 crore on the project till June 30, 2014 funded with debt of Rs.140.1 crore, equity of

Rs.182.5 crore, unsecured loans from promoter of Rs.75 crore. GBHHPL also incurred Rs.178 crore outside of the



211

Brief Rationale

project cost including interest on Inter Corporate Depsit (ICD, till April 2013) and other establishment expense

funded with ICD of similar amount.

Analyst Contact

Name: Karthik Raj K

Tel: 080-4115 0455











212

Brief Rationale

October 07, 2014

CARE Assigns ‘CARE A+ (SO)*’rating to the proposed Long Term Debt programme of

Ambit Finvest Pvt. Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Proposed Long-term Debt Programme 100

In principle CARE A+(SO)* (Single A Plus

[Structured Obligation])

Assigned

*based on proposed credit enhancement in the form of an unconditional and irrevocable guarantee from the

parent, Ambit Corporate Finance Pvt. Ltd. (ACFPL)

Rating Rationale

The rating is based on the credit enhancement in the form of an unconditional and irrevocable guarantee from the

parent, Ambit Corporate Finance Pvt. Ltd. The rating takes into account strong promoters and experienced

management team of the Ambit Group, good track record in the investment banking space, robust capitalization &

comfortable liquidity position, good asset quality and good risk management systems. The rating also factors in the

low track record and concentration risk in the NBFC business, capital market dependence of the group’s business,

suppressed profitability due to nascent businesses and high dependence on a few key employees. Scaling up of

nascent businesses, overall profitability, capitalization levels, asset quality and retention of key employees are the


Background

Ambit Group, promoted by Mr Ashok Wadhwa, is into various financial activities like investment banking,

institutional equity broking, wealth management, private equity, investment advisory, secured lending and

proprietary trading activities. ACFPL is registered as a Category 1 merchant banker with SEBI and is into investment

banking business since 1998. The ultimate holding company of the group, Ambit Holdings Pvt. Ltd. (AHPL) holds

70.1% stake in ACFPL and the remaining is held by Inner Mauritius Investments Ltd which is a subsidiary of Qinvest,

a Qatar-based financial services firm. ACFPL provides investment banking services to companies in structuring and

execution of M & As, divestitures, JVs, spin-offs and capital mobilization. The tangible net worth of Ambit Holdings

as on March 31, 2014 stood at Rs.367 crore. AFPL, the wholly owned subsidiary of ACFPL, is registered as a non-

deposit taking NBFC and is into the business of promoter funding, margin funding, loan against shares, loans to

mid-corporate and real estate funding. The NBFC business started in FY11 and the loan portfolio at the end of July

2014 stood at Rs.136 crore.



213

Brief Rationale

At the ultimate holding level, AHPL earned a PAT of Rs.23.2 crore on a total income of Rs.135 crore in FY14. During

FY14, on a standalone basis, ACFPL earned a PAT of Rs.9.9 crore on a total income of Rs.49.2 crore. Advisory fee of

Rs.26.6 crore was the major component in the revenue. AFPL earned a PAT of Rs.4.6 crore on a loan portfolio of

Rs.84 crore in FY14.

Analyst Contact

Name: Mr Anuj Jain

Tel: 022-67543451





214

Brief Rationale

October 07, 2014

CARE assigns ‘CARE BB’ and ’CARE A4+’ ratings to the bank facilities of

Riviera Polymers Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B) Assigned


(A Four Plus) Assigned


Rating Rationale

The ratings assigned to the bank facilities of Riviera Polymers Private Limited (RRPL) are constrained by its modest

scale of operations with declining total operating income, susceptibility of its profitability to volatile raw material

prices, credit risk associated with polymer trading business and its presence in a highly fragmented and

competitive polymer and flexible packaging industry.

The above constraints far offset the benefits derived from the vast experience of the promoters of RRPL in the

polymer and flexible packaging business, established relation as a del-credere agent for GAIL, comfortable capital

structure and profitability and moderate working capital intensity of operations.

The ability of RRPL to increase its scale of operations while managing the volatility associated with the raw material

prices and effectively managing its capital structure are the key rating sensitivities.

Background

Riviera Polymers Private Limited (RPPL, erstwhile Riviera Polymers Private Limited) was originally incorporated on

August 10, 1982 by Mr Babulal Rungta, Mr Vinod Bajoria and Mr Shyam Sunder Rungta. Since its inception, RPPL

has been engaged in the manufacturing of colour and filled master batches which are primarily used to

manufacture a large variety of plastic products with major focus on PP/HDPE woven fabrics & sacks application.

The manufacturing facility of the company is located in Sanand (Gujarat), with an installed capacity of 5,000 metric

tonnes per annum as on August 31, 2014. In 1997, RPPL was appointed as the Del-Credere Associate (DCA) and

Consignment Stockiest (CS) of GAIL India Ltd (GAIL) for polymers for North Gujarat and Ahmedabad.

RPPL belongs to the Riviera group of Gujarat. The group is having various companies under its umbrella which are

engaged in manufacturing of plastic compound & alloys, all types of polymers, PP woven sacks, steel rolling mill

and trading of fans.

As per the provisional results for FY14 (refers to the period April 1 to March 31), RRPL earned a PAT of Rs.0.40

crore on a total operating income (TOI) of Rs.10.54 crore as against a PAT of Rs.0.40 crore on a TOI of Rs.10.99

crore in FY13.



215

Brief Rationale

Analyst Contact

Name: Nitin Jha Tel # (079) 40265656 Email: [email protected]












factors.


216

Brief Rationale

October 07, 2014

CARE assigns ‘CARE BB’ and ’CARE A4’ ratings to the bank facilities of

Aangan Agrotech Exports Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B) Assigned

Short term Bank Facilities 0.40 CARE A4 (A Four)

Assigned


Rating Rationale

The ratings assigned to the bank facilities of Aangan Agrotech Exports Limited (AAEL) are constrained by its modest

scale of operations with low profitability, susceptibility of its profitability to volatile raw material prices, working

capital intensive operations and its presence in a highly fragmented and competitive polymer and flexible

packaging industry. The ratings are also constrained on account of stabilization risk associated with its debt-funded

expansion project.

The above constraints far offset the benefits derived from the vast experience of the promoters of AAEL in the

polymer and flexible packaging business, comfortable capital structure and diversified end user industries.

The ability of AAEL to increase its scale of operations by achieving the envisaged capacity utilization from its

expansion project while managing the volatility associated with the raw material prices and effectively managing

its capital structure and working capital requirement are the key rating sensitivities.

Background

Aangan Agrotech Exports Ltd (AAEL) incorporated in April, 1996, was promoted by the Rungta family of

Ahmedabad, Gujarat. The company is engaged in the manufacturing of HDPE, PP fabric sacks, masterbatches and

leno bags with its manufacturing unit located at Mehsana (Gujarat) and is operating with an installed capacity of

7,200 Metric Tonne Per Annum (MTPA) as on August 31, 2014. The products of AAEL find extensive applications in

industries ranging from chemicals, fertilizers, agriculture, cement, food processing etc.

AAEL undertook an expansion project during FY14 (refers to the period April 1 to March 31) at its existing unit

thereby enhancing the capacity by 4,400 MTPA. The total cost of the project was Rs.12.50 crore (excluding margins

for working capital) to be funded at a debt equity ratio of 1.85:1. AAEL belongs to The Riviera group of Gujarat. The

group is having various companies under its umbrella which are engaged in the manufacturing of plastic compound

& alloys, all types of polymers, PP woven sacks, steel rolling mill and trading of fans.

As per the provisional results for FY14, AAEL earned a PAT of Rs.0.99 crore on a total operating income (TOI) of

Rs.70.25 crore as against a PAT of Rs.0.23 crore on a TOI of Rs.57.64 crore in FY13.



217

Brief Rationale

Analyst Contact

Name: Nitin Jha Tel: (079) 40265656 Email: [email protected]












factors.


218

Brief Rationale

October 07, 2014

CARE assigns ‘CARE BB’ rating to the bank facilities of

Artech Realtors Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


[Double B] Assigned

Total Facilities 25

Rating Rationale

The rating assigned to the bank facilities of Artech Realtors Private Limited (ARPL) is constrained by high

dependence on customer advances for funding of the ongoing projects, implementation risk associated with the

ongoing projects, exposure to inherent cyclicality and intense competition associated with the real estate industry

and its concentrated operations primarily confined to the Thiruvananthapuram region.

The rating, however, draws strength from its experienced and qualified promoter, comfortable booking status for

the projects and execution of projects through joint venture route with minimal upfront cash outflow.

Going forward, timely completion of the ongoing projects within the estimated costs, timely receipt of funds from

customers and ARPL’s ability to sell the remaining flats at envisaged rates would be the key rating sensitivities.

Additionally, the ability of ARPL to diversify its operations into other cities to reduce its concentration risk would

also be key to the prospects of the company.

Background

ARPL is a Kerala-based company engaged in the development of residential and commercial real estate projects.

ARPL is promoted by Mr TS Asok, who has rich experience in town planning and real estate development. Since

inception in 2005, ARPL has completed 14 residential projects (533 units) across Thiruvananthapuram & its

suburban areas, with total area sold measuring up to 7.74 lakh square feet (lsf). Overall, Mr. Asok has executed 33

residential projects in Kerala through ARPL and other group concerns. As on August 2014, ARPL is executing 15

residential projects with total saleable area of 15.77 lsf and two commercial projects, ‘Meenakshi Plaza’ & ‘World

Mall’ with total development area of 1.44 lsf. Apart from the ongoing projects, ARPL has two new residential

projects to be launched shortly with total saleable area of 2.62 lsf to be developed under joint venture route.

As per the provisional results for FY14 (refers to the period April 1 to March31), ARPL registered a net profit of

Rs.7.4 crore on a total income of Rs.133.4 crore.



219

Brief Rationale

Analyst Contact

Name: Harihara Subramanian C

Tel: 044-28490876













factors.

220

Brief Rationale

October 07, 2014


Deepak Proteins Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 7.86 CARE B+

(Single B Plus) Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of Deepak Proteins Private Limited (DPPL) continues to remain

constrained on account of its modest scale of operations in the highly fragmented and working capital intensive

edible oil industry and weak financial risk profile marked by thin profitability, leveraged capital structure, moderate

liquidity and weak debt coverage indicators. The rating is also constrained on account of vulnerability of profit

margins to fluctuation in raw material prices. The rating also factors in decline in operating income and cash

accruals and deterioration in the capital structure during FY14 (refers to the period April 1 to March 31).

The above constraints far offset the benefits derived from the long track record of the promoters in the edible oil

industry and proximity to raw material source.

DPPL’s ability to increase its scale of operations along with the improvement in profitability amidst high

competition and rationalization of debt levels with better working capital management are the key rating

sensitivities.

Background

DPPL was incorporated by Mr Satishchandra Thakkar and Mr Gunvantlal Thakkar along with other family members

in 2008. The company is engaged in the manufacturing of cotton seed wash oil and de-oiled cake (DOC). DPPL’s

plant is located at Harij, Gujarat with an installed capacity of 22,000 Metric Tonnes Per Annum (MTPA) as on

August 31, 2014 and 18 expellers at its crushing facility. DPPL’s operations are concentrated in North Gujarat. DPPL

market its products under the brand name ‘SATISH’.

The promoters also run two entities in the name of P.V. Agro and Kalptaru Finstock. P.V. Agro is engaged in the

trading of various agro commodities like castor seeds, guar seeds, cumin seed, cotton DOC and guar dal while

Kalptaru Finstock is engaged in commodities trading and investments in shares.

DPPL reported a PAT of Rs.0.05 crore on a total operating income (TOI) of Rs.39.82 crore during FY14 (refers to the

period April 1 to March 31) as against a PAT of Rs.0.09 crore on a TOI of Rs.45.19 crore during FY13.



221

Brief Rationale

Analyst Contact

Name: Nitin Jha

Tel: (079) 40265656













factors.


222

Brief Rationale

October 07, 2014


Tufropes Private Ltd And India Nets Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from Rs.30.00 crore) CARE A+

(Single A Plus) Reaffirmed


(enhanced from Rs.5.50 crore) CARE A1 (A One)

Reaffirmed

Long/Short term bank facilities 20.00 (enhanced from Rs.10.00 crore)

CARE A+/CARE A1 (Single A Plus/ A

One)

Reaffirmed


Rating Rationale

The ratings continue to derive strength from the resourceful and experienced promoter group, Tufropes Private

Limited’s (TPL) leadership position in the industry – being the largest exporter of High Density

Polyethylene/Polypropylene (HDPE/PP) ropes from India with a market presence in several countries across the

globe and association with Reliance Industries Ltd (RIL) for raw material supplies. Furthermore, the ratings also

derive comfort from the healthy financial risk profile with stable operating margins.

The ratings are, however, constrained by the relatively small size of operations, volatility associated with the key

input prices, viz, crude-based polymers and highly competitive and un-organized nature of the HDPE/PP ropes

industry.

The ability of TPL to maintain its leadership position in a competitive environment remains the key rating

sensitivity.

Consequent to the reaffirmation in the ratings of the above-mentioned facilities of TPL, the ratings of India Nets

(INs) were also reaffirmed, as all the facilities of INs are backed by the unconditional and irrevocable corporate

guarantees extended by TPL.

Ratings- INs

Facilities Amount

(Rs. crore) Ratings

2 Remarks

Long term Bank Facilities 10.00 (enhanced from Rs.1.20 crore)

CARE A+ (SO) (Single A Plus [Structured Obligation])

Reaffirmed

Short term Bank Facilities 6.00 CARE A1 (SO) (A One [Structured Obligation])

Reaffirmed

Long/Short term bank facilities

8.00 (reduced from Rs.10.00 crore)

CARE A+ (SO)/A1 (SO) (Single A Plus / A One [Structured

Reaffirmed



223

Brief Rationale

Obligation])


Background

Tufropes Private Limited (TPL), established in 1992, is engaged in the manufacturing of high quality synthetic ropes

such as polypropylene-film ropes, HDPE twisted twine, polyester ropes, etc. The company is jointly owned by the

promoters of Jai Corp Ltd (Jain family) and the Goel family (related to the Jain family). The products of the

company are used in the industrial as well as consumer segments, covering sectors such as fishing, aqua culture

and other general purpose. TPL has two manufacturing units at Silvassa, (Dadra & Nagar Haveli) (at Amli – EOU and

Rakholi), with an aggregate capacity of 20,400 tpa as on March 31, 2014. It has also recently set-up another unit at

Vadodara, Gujarat, with an installed capacity of 5,400 tpa. The key raw materials consumed in the manufacturing

process of ropes are polypropylene, polyethylene, nylon and polyester; polypropylene accounting for the largest

share.

During FY14 (refers to the period April 01 to March 31), TPL posted a PAT of Rs.11.95 crore on a total income of

Rs.228.93 crore as compared with a PAT of Rs.14.60 crore on a total income of Rs.197.82 crore during FY13.

Analyst Contact

Name: Mr Puneet Bhatia

Tel: 022- 67543453










224

Brief Rationale

October 07, 2014

CARE reaffirms rating assigned to bank facilities of

IDAA Infrastructure Private Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term- Bank Facilities 458.71 CARE A-

[Single A Minus] Reaffirmed

Rating Rationale

The rating assigned to the bank facilities of IDAA Infrastructure Private Limited continues to derive comfort from

the promoter group’s established track record in Build-Operate-Transfer (BOT)-toll road projects, favourable

location of the stretch and operational status since the past five years with a reasonable growth in toll revenue.

Besides, 100% linkage of toll rates to wholesale price index inflation and fixed-price Operation and Maintenance

(O&M) agreement continue to be other credit positives.

The rating, however, continues to be tempered by the inherent revenue risk associated with the toll road projects,

the interest rate risk and the renewal risk associated with non-fund based Debt Service Reserve Account (DSRA).

The ability of the company to achieve the traffic and toll estimates and carry out the maintenance activity as

planned constitutes the key rating sensitivities.

Background

IDAA Infrastructure Private Limited (IDAA) is a Special Purpose Vehicle (SPV) promoted mainly by IRB Infrastructure

Developers Limited (IRB, rated CARE AA-(SO)) and to implement the six-laning from the existing four-lane of the

Surat–Bharuch section of NH-8 from Km 198 to Km 263 in the state of Gujarat on a BOT (Toll) basis under National

Highway Development Plan (NHDP) Phase-V of the National Highway Authority of India (NHAI, rated CARE AAA).

The company has signed the Concession Agreement with NHAI for a period of 15 years ending on January 1, 2022.

The project was bid with a negative grant payable to NHAI aggregating Rs.504 crore. The total project cost of

Rs.1,465 crore was funded through term loans of Rs.1,208 crore, equity of Rs.198 crore and the balance in the

form of unsecured interest-free loans from IRB. The project achieved commercial operations (COD) on September

25, 2009.

During FY14 (refers to the period April 1 to March 31), IDAA reported toll revenues of Rs.166.57 crore (Rs.161.15

crore previous year) and PAT of Rs.10.75 crore (Rs.10.37 crore previous year). Furthermore during Q1FY15, IDAA

reported toll revenue of Rs.43.83 crore (Rs.40.18 crore corresponding period in previous year).



225

Brief Rationale

Analyst Contact


Tel: 022-6144 3505













factors.


226

Brief Rationale

October 07, 2014


Narayan Cotgin Corporation Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long -term Bank Facilities 9 CARE B+

(Single B Plus) Re-affirmed

Short-term Bank Facilities 4 CARE A4 (A Four)

Re-affirmed

Total 13

Rating Rationale

The ratings assigned to the bank facilities of Narayan Cotgin Corporation (NCC) continue to remain constrained on

account of the modest scale of operations thin profitability and weak debt coverage indicators. The ratings are

further constrained by its working capital intensive nature of operation in the fragmented and competitive cotton

ginning industry, susceptibility of margins to fluctuation in raw material prices and seasonality associated with

availability of raw material and its partnership nature of constitution.

The ratings, however, derive strength from the experienced partners, presence of group entities at different levels

of value chain of cotton processing, moderate capital structure and favorable location with presence in the leading

cotton-producing region of India.

The ability of NCC to increase its scale of operations and improve its profitability and capital structure and better

working capital management in light of the competitive nature of the industry are the key rating sensitivities.

Background

Narayan Cotgin Corporation (NCC) was constituted as a partnership firm in 2005. NCC is engaged in the cotton

ginning & pressing business. The firm is promoted by Mr Thakarshi Metaliya and Mr Sunny Metaliya along with

other family members. NCC operates from its sole manufacturing plant located at Amreli (Gujarat) which has an

installed capacity of 72,000 bales per annum (400 bales per day for 180 days) as on March 31, 2014. NCC generates

entire income from the domestic market.

NCC has four associate firms, namely, Narayan Spinning Mills Private Limited (NSMPL: assigned CARE B / CARE A4

in June 2013) which is engaged in spinning of cotton bales, Narayan Solvex (NRS: reaffirmed CARE B+ in March

2014) which is engaged in refining, Narayan Oil Mill (NOM) and Shakti Oil Mills (SOM) which are engaged in cotton

seeds crushing activities.



227

Brief Rationale

As per the provisional results for FY14 (refers to the period April 01 to March 31), NCC reported a net profit of

Rs.0.11 crore on a Total Operating Income (TOI) of Rs.92.55 crore as against TOI of Rs.89.23 crore and net profit of

Rs.0.15 crore during FY13. During 5MFY15, NCC achieved the turnover of Rs.20.15 crore.

Analyst Contact

Name: Mr Nitin Jha

Tel: 079-4026 5656













factors.


228

Brief Rationale

October 07, 2014


Jawahar Shetkari Sahakari Sakhar Karkhana Limited Ratings

Facilities Amount (Rs. crore) Ratings1 Remarks


(enhanced from 200) CARE BB

[Double B] Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of Jawahar Shetkari Sahakari Sakhar Karkhana Limited (JSSKL) continues to

be constrained by its financial risk profile marked by relatively low profitability margins, working capital intensive

nature of operations and seasonal & cyclical nature of the sugar industry.

The rating, however, derives strength from the long and established track record of JSSKL of over two decades in

the seasonal and cyclical sugar industry, qualified and experienced second-tier management, partially-integrated

business model of sugar mill resulting in de-risking of the core sugar business to a certain extent and strategic

location of the sugar factory in the area of high recovery sugar cane.

The ability of JSSKL to procure the envisaged volume of sugar cane at the envisaged price, improve its profitability

margins and effectively manage working capital cycle are the key rating sensitivities.

Background

Jawahar Shetkari Sahakari Sakhar Karkhana Limited (JSSKL) was incorporated in January 1990 under

The Maharashtra Co-operative Societies Act 1960. The partially integrated sugar factory of JSSKL is

located in the village Hupari on the southern border of Maharashtra adjoining the State of Karnataka. In

1994, the status of JSSKL was converted in to ‘Multi-State Co-operative Society’ by incorporating a total

of 182 villages in JSSKL’s area of operation - 62 villages in State of Karnataka and the rest 120 villages in

the State of Maharashtra. Presently JSSKL is spearheaded by Mr Kallappa Baburao Awade, founder

Chairman and the day-to-day operations are looked after by Mr Manohar Gopal Joshi in the strength of

Managing Director (MD).

JSSKL successfully undertook its first sugar season (SS) in the year 1993-94 with a crushing capacity of

1,016 tonnes crushed per day (TCD) and co-generation unit of 1.5 megawatt (MW). The crushing

capacity was subsequently enhanced in stages, with the present installed capacity as on March 31, 2014



229

Brief Rationale

at 9,000 TCD and bagasse based co-generation unit of 27 MW. During FY14 (Provisional results; refers to

the period April 1 to March 31) JSSKL achieved a total operating income of Rs.518.44 crore (sugar sales

of Rs.447.51 crore) as against Rs.449.61 crore during FY13 core.

During FY14 (Provisional), JSSKL reported a PAT of Rs.18.57 crore on a total operating income of

Rs.518.44 crore as against PAT of Rs.26.69 crore on a total operating income of Rs.526.23 crore in FY13.

Analyst Contact

Name: Mr. Aniruddha Mate

Tel: 020-4000 9000













factors.


230

Brief Rationale

October 07, 2014


Orient Press Limited Ratings

Instruments Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 22.51 CARE BBB (Triple B)

Reaffirmed


(A Three Plus) Reaffirmed

Long-term/Short-term Bank Facilities 10.00 CARE BBB/CARE A3+

(Triple B/A Three Plus) Reaffirmed


Rating Rationale

The reaffirmation of ratings assigned to bank facilities of Orient Press Ltd (OPL) continue to derive strength from its

experienced promoters & management, its well established position in printing of capital market offer documents,

stable demand for its flexible packaging products, completion of packaging division expansion project, comfortable

capital structure and its long standing relationships with reputed clientele.

The ratings are, however, constrained by OPL’s moderate scale of operations, subdued operational performance in

FY14 (refers to period from April 1 to March 31), high working capital intensity, sensitivity to any adverse

government regulations for flexible packaging (plastic) industry, and highly competitive nature of packaging &

printing industries.

The company’s ability to pass on any rise in manufacturing cost thereby maintaining its profitability and to improve

its liquidity profile by efficient working capital management are the key rating sensitivities.

Background

Incorporated on January 02, 1987 as a private limited company, Orient Press Limited (OPL) is engaged in the

segments of packaging and printing. Under packaging segment, the company manufactures flexible packaging

material of multi-layer film laminates and paper board cartons; while under its printing segment, it is involved in

several activities such as (1) printing of capital market stationery – offer documents etc, (2) commercial printing

such as text books, annual reports etc, and (3) security printing like MICR cheques, dividend warrants, etc.

Presently, OPL has manufacturing facilities at Tarapur in Maharashtra and Silvassa in Union Territory of Dadra &

Nagar Haveli with an aggregate capacity of 7,200 MTPA for its flexible packaging division and of 3,600 lac pieces PA

for its paper board carton division.



231

Brief Rationale

During FY14, OPL achieved total income of Rs.179 crore and PAT of Rs.1 crore, whereas PAT stood at Rs.0.55 crore

on total income of Rs.51 crore for Q1FY15.

Analyst Contact

Name: Mr. Divyesh Shah

Tel: 022 - 6144 3528













factors.

232

Brief Rationale

October 07, 2014

CARE reaffirms the ratings assigned to the bank facilities of Prime Gold Udyog Pvt Ltd

Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B Minus)

Reaffirmed


Rating Rationale

The rating of bank facilities of Prime Gold Udyog Pvt Ltd (PGUPL) continues to be constrained by significant project

implementation risk in view of the nascent stage of project execution and susceptibility to raw material price

fluctuation risk. The rating is also constrained by the highly competitive and fragmented nature of the industry and

the cyclicality inherent in the steel industry. However, the rating continues to derive strength from the experience

of the promoters in the steel industry and tie-up of debt for the project under execution.

Going forward, the company’s ability to complete the project within the time and cost estimates and achieve the

desired operating parameters and profitability shall be the key rating sensitivities.

Background

Prime Gold Udyog Private Limited (PGUPL) was incorporated in July 2008 to set up facilities for manufacturing TMT

bars at Chunar, Mirzapur in Uttar Pradesh. The shareholding of the company is vested in the hands of the

promoters of Eco Cement group and Prime Gold group in the ratio 70:30. The company is undertaking the project

at a total cost of Rs.68.09 crore, being funded through a term loan of Rs.35 crore and promoters’ contribution of

Rs.33.09 crore. The proposed installed capacity of thermo-mechanically treated (TMT) bars is 1,50,000 tonnes per

annum (TPA).

The company’s project is still in the initial stage of implementation with an expenditure of Rs.8.44 crore having

been incurred upto June 30, 2014, funded by promoters contribution of Rs.4.44 crore, term loan of Rs.3.68 crore

and project creditors of Rs.0.32 crore. The project is expected to be completed by December 2014.

Analyst Contact

Name: Ajay Dhaka

Tel: 011-45333218







233

Brief Rationale










factors.

234

Brief Rationale

October 07, 2014


Shivalik Power & Steel Pvt Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


[Double B] Reaffirmed


Rating Rationale

The rating of Shivalik Power & Steel Pvt Ltd (SPSPL) continues to remain constrained by its small size of operation,

high bargaining power of the customers, client concentration risk, partial insulation from volatility in raw material

prices, working capital intensive nature of operation, moderate financial risk with tight liquidity position, and high

exposure to a project stage group company, Shivalik Engineering Industries Pvt Ltd (SEIPL). The rating weakness is,

however, partially offset by long experience of the promoters, established relationship with reputed clientele and

quality certifications & accreditation for its products. Ability of the company to successfully execute the project

being undertaken by SEIPL and derive the projected benefits from the same, optimally utilise its existing facilities &

sustain operating margin at the current level and effective management of working capital are the key rating

sensitivities.

Background

Shivalik Power & Steel Pvt Ltd (SPSPL), was incorporated in 2004 by Mr. Giriraj Singhania and Mr. Vishal Sharma

based out of Chhattisgarh. In 2007, the company forayed into foundry industry with an installed capacity of 17,500

MTPA located in Mahasamund, Chattisgarh. The company produces ductile iron and graded cast iron products,

which are used in automobile and engineering industries. Majority of the sales of SPSPL are derived from supplying

to Original Equipments Manufacturers (OEM’s) of large automobile companies. The products of the company are

ISO 9001:2008 and ISO 16949:2009 certified.

In FY14, SPSL reported a PAT (after deferred tax) of Rs.0.58 crore (compared to Rs.1.17 crore in FY13) on total

operating income of Rs.81.03 crore (Rs. 72.41 crore in FY13). In Q1FY15, SPSPL reported a PBT of Rs.0.7 crore on

gross sales of Rs.24.5 crore.

Analyst Contact

Name: Mr Utkarsh Nopany

Tel: 033 4018 1605






235

Brief Rationale







236

Brief Rationale

October 07, 2014


Shivalik Engineering Industries Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 33.5 CARE BB (SO)

[Double B (Structured Obligation)] Reaffirmed

Total Facilities@ 33.5

@ backed by unconditional and irrevocable corporate guarantee provided by Shivalik Power & Steel Pvt Ltd. (rated CARE BB)

Rating Rationale

The above ratings are based on the credit enhancement in the form of unconditional and irrevocable corporate

guarantee provided by Shivalik Power & Steel Pvt Ltd (SPSPL, rated CARE BB) for the bank facilities of Shivalik

Engineering Industries Pvt Ltd.

SPSPL’s ratings takes into account the small size of operation, high bargaining power of the customers, client

concentration risk, partial insulation from volatility in raw material prices, working capital intensive nature of

operation, moderate financial risk with tight liquidity position, and high exposure to a project stage group

company, Shivalik Engineering Industries Pvt Ltd (SEIPL). The rating weakness is, however, partially offset by long

experience of the promoters, established relationship with reputed clientele and quality certifications &

accreditation for its products. Ability of the company to successfully execute the project being undertaken by SEIPL

and derive the projected benefits from the same, optimally utilise its existing facilities & sustain operating margin

at the current level and effective management of working capital are the key rating sensitivities.

Background

Shivalik Engineering Industries Pvt Ltd (SEIPL) was incorporated in 2011 by Mr Giriraj Singhania and Mr Vishal

Sharma based out of Chhattisgarh. Currently the company is in process of setting up a foundry and engineering

project for manufacturing of ready to use finished components for automobiles, railways and engineering industry.

The project is being set up in Bhilai, Chhattisgarh with a capacity of 30,000 TPA at a total project cost of Rs. 52.84

crore financed at debt equity ratio of 1.73:1, financial closure of which is already in place. The commercial

production is expected to commence from Oct 2014 onwards. Till June 2014, the company had already incurred

Rs.21.78 crore on the project financed by equity share capital (including premium) of Rs.15.24 crore, unsecured

loan of Rs.1.37 crore and term loan of Rs.5.17 crore.

Analyst Contact


Tel: 033 4018 1605






237

Brief Rationale







238

Brief Rationale

October 07, 2014


The Cotton Corporation Of India Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Short-term Fund-based Bank 4000 CARE A1+


Total 4000

Rating Rationale

The rating continues to factor in Government of India’s (GoI’s) support by way of Letter of Comfort (LoC) to

reimburse any losses incurred on Minimum Support Price (MSP) operations undertaken by CCI, GoI parentage, long

drawn experience of CCI in managing the cotton trading operations, wide spread network of procurement centers

and well-established image as a reliable supplier of quality cotton. However, low and volatile profitability margins

on account of the trading nature of business and seasonal nature of business are the key rating concerns in the

long term. The ability of the company to prudently manage liquidity in the scenario of volatile cotton prices is the

key rating sensitivity.

Background

Established in 1970, CCI is a GoI undertaking engaged in the trading of raw cotton. The operations of CCI are

governed by Textile Policy, 1985, issued by the Ministry of Textiles, GOI. As per the policy, the role of CCI is to:

Undertake price support operations whenever the market price of cotton touches the support price

announced by GoI without any quantitative limit. All losses incurred by CCI (including the finance cost) for the

MSP operations are borne by GoI.

Undertake commercial operations at its own risk

Depending on the cotton scenario in the country, the role and functions of CCI keep changing from time to time.

CCI has received Letter of Comfort from GOI for undertaking MSP operations in cotton season 2013-2014 (October

2013-September 2014). During FY14 (refers to the period April 01 to March 31), the company reported PAT of

Rs.60 crore on a total income of Rs.4914 crore as against PAT of Rs.33 crore on total income of Rs.2033 crore in

FY13.



239

Brief Rationale

Analyst Contact

Name: Gunjan Gupta

Tel: 022-6144 3472











240

Brief Rationale

October 07, 2014


Ganpati Plastfab Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed

Long term Bank Facilities / Short term Bank Facilities

8.30 CARE BBB-/CARE A3

(Triple B Minus / A Three) Reaffirmed

Rating Rationale

The ratings assigned to the bank facilities of Ganpati Plastfab Limited (GPL) continue to take comfort from the vast experience of the promoters coupled with its long standing presence in the industry and its established relationship with the reputed customers. The ratings further derive strength from moderate profitability, comfortable liquidity profile and solvency position. The ratings, however, continue to remain constrained on account of GPL’s presence in a highly competitive and fragmented industry, low bargaining power against its suppliers as well as customers and vulnerability of margins to fluctuations in raw material prices and foreign exchange rate. The ratings are further constrained on account of project undertaken by the company. The ability of the company to improve the profitability margins in light of the volatile raw material prices and its presence in a highly fragmented industry and better management of working capital are the key rating sensitivities.

Background Jaipur-based (Rajasthan) GPL was incorporated in December 1984 and promoted by Mr AK Pabuwal along with his family members. GPL is engaged in the business of manufacturing of Polypropylene (PP) and High-Density Polyethylene (HDPE) based woven sack bags and fabrics. The products of the company find application in the packaging of agro products, heavy chemicals, poultry feed, cement and fertilizers, etc. The company has two manufacturing facilities located at Jaipur with 83 looms at its plant located at Bindayaka and 50 looms at Bagru in Jaipur with an installed capacity of 9,680 Metric Tonnes Per Annum (MTPA) as on March 31, 2014. During FY14 (refers to the period April 1 to March 31), it has utilized 93% of the installed capacity as against 79% during FY13.

As per provisional results for FY14, AGPL has reported a total operating income of Rs.101.01 crore as against Rs.91.75 crore during FY13 and PAT of Rs.2.07 crore during FY14 as against Rs.2.10 crore during FY13.

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612





Tel:-


241

Brief Rationale










factors.

242

Brief Rationale

October 07, 2014


Mandhana Industries Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 787.73 CARE A

(Single A) Reaffirmed

Short term Bank Facilities 60.00 CARE A1 (A One)

Reaffirmed


Non-Convertible Debentures

100.00 CARE A (Single A)

Reaffirmed

Rating Rationale

The ratings assigned to the bank facilities and Non Convertible Debentures (NCDs) of Mandhana Industries Limited

(MIL) continue to derive strength from its experienced promoters, the company’s partially-integrated operations,

the gradual shift in its product mix towards high-margin garment business, its established marketing set-up with a

strong clientele and an in-house product design and development team. The ratings also consider MIL’s moderate

debt coverage indicators.

The ratings are, however, constrained by the company’s elongated working capital cycle and the fragmented

nature of the weaving and garmenting industry imparting low pricing power.

MIL’s ability to successfully execute the planned projects, optimally utilize its enhanced capacity, reduce its

inventory holding period associated with its retail operations and improve its profitability in a scenario

characterized by volatility in raw material prices and exchange rates are the key rating sensitivities.

Background

In the 1984, Mandhana Industries Ltd (MIL) was originally incorporated as Mandhana Textile Mills Pvt Ltd and was

engaged in trading of fabrics. Subsequently, the company entered into fabric processing and garmenting and was

renamed as MIL. In 2003, there was a separation in the family and the two elder brothers separated and took

charge of the garmenting business. The younger brothers Mr Purushottam Mandhana and Mr Biharilal Mandhana

took charge of MIL. After separation, the company set up new garmenting capacity and entered yarn dyeing and

weaving segment. As at the end of March 31, 2014, MIL had the capacity to produce 36 million metres of grey

fabric per annum, processing capacity of 66 million metres per annum, garmenting capacity of 5.60 million pieces

per annum and yarn dyeing capacity of 3000 MT per annum. The garmenting facility is located at Bangalore while

all other facilities are located at MIDC, Tarapur. Sale of fabric is the major revenue generator, contributing around

81% of total revenues in FY14 (refers to the period April 01 to March 31); the rest is contributed by sale of

garments. The sales are more skewed towards domestic market (contributing around 82% of its revenue in FY14).

The company has a strong client base and its major domestic customers are Aditya Birla Nuvo, Pantaloon Retails,

ITC (brand Wills Lifestyle), Liliput, Blackberry, Indian Terrain Clothing, Colorplus Fashion, etc. The overseas



243

Brief Rationale

customers include brands like Tommy Hilfiger, Charles Vogele, FCUK, RIP CURL, All Saints, Simint, Colin’s, Pepe

Jeans and LAFUMA.

In May 2012, the company launched apparels and accessories under ‘Being Human’ brand under license

arrangement with Salman Khan Foundation in Middle East Countries and in India in Oct 2012. MIL had booked

revenues of Rs.131 crore (previous year Rs.46.26 crore) in FY14 from the brand.

The company achieved a PAT of Rs.59.24 crore on a total operating income of Rs.1,477.86 crore in FY14 as

compared to PAT of Rs.62.24 crore on a total operating income of Rs. 1320.80 crore in FY13.

Please refer to the detailed rationale published on our website www.careratings.com

Analyst Contact

Name: Mr. Pulkit Agarwal

Tel: 022-6754 3505













factors.


244

Brief Rationale

October 07, 2014


Simhadri Power Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 25) CARE BBB-


Short term Bank Facilities 33 CARE A3 (A Three)

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Simhadri Private Limited (SPL) continue to derive strength from the

experienced and resourceful promoters, improvement in the overall financial risk profile during FY14 (refers to the

period April 1 to March 31) on account of successful completion of its first full year of operations and stabilisation

of the same, operational synergy derived by SPL from the group company, adequate arrangements for the fuel

supply and off-take arrangement for the entire produced power. The ratings also factor in the expected synergy

from the proposed amalgamation of SPL with Steel Exchange India Limited.

The ratings are, however, constrained on account of the highly leveraged capital structure, absence of long-term

Power Purchase Agreement (PPA) for the residual power sold after meeting the power requirements for Steel

Exchange India Limited and limited track record of operations of the power division.

The ability of the company to enter into long-term tie-up for the remaining power, maintain the operational

performance and to improve the capital structure and profitability are the key rating sensitivities.

Background

Incorporated in August 2009, Simhadri Power Limited (SPL), Visakhapatnam, Andhra Pradesh, is promoted by Steel

Exchange India Limited (SEIL; rated ‘CARE BBB-’, ‘CARE A3’) of the Vizag Profiles group. SEIL holds 39.21% (as on

March 31, 2014) of shareholding in SPL and the rest is held by the promoters and group concern companies. SPL

has established a Power Plant of 60 MW within the premises of SEIL on lease for a period of 30 years from April

2012. The power plant has achieved COD on November 15, 2012.

SPL has the capacity to generate 16 MW of power by utilising hot waste gases from Sponge Iron Kiln and 24 MW by

using coal fines and kiln waste (char) materials, which will be mixed along with coal. The remaining 20 MW is being

generated by using coal as fuel. The PLF of the power plant during FY14 was about 86%. The management of the

SEIL is in the process of amalgamating SPL with SEIL during H2FY15 subject to requisite approvals.



245

Brief Rationale

In FY14, SPL has reported a total income of Rs.193.06 crore [Rs.53.63 crore in FY13] and a PAT of Rs.1.04 crore (net

loss of Rs.17.17 crore in FY13).

Analyst Contact










246

Brief Rationale

October 07, 2014


DIVI'S Laboratories Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 74 CARE AA+


Long-term/Short-term Bank Facilities 140 CARE AA+ (Double A Plus)/

CARE A1+ (A One Plus) Reaffirmed


Rating Rationale

The ratings assigned to bank facilities of Divi’s Laboratories (DLL) continue to factor in its promoter’s rich

experience in the pharmaceutical industry, proven research and development capabilities with a large number of

Drug Master Files (DMF) filings, well equipped manufacturing capabilities with the United States Food &Drug

Administration (USFDA) and current Good Manufacturing practices (cGMP) certified production facilities,

consistent growth in revenue with a major share of revenue from the export markets mainly regulated markets,

healthy financial risk profile characterized by high profitability margins, low gearing levels and healthy liquidity

position during FY14 (refers to the period April 1 to March 31) and positive outlook for the pharmaceuticals sector.

The ratings are, however, constrained by product concentration risk; risk associated with foreign exchange

fluctuation and extended working capital cycle.

The ability of the company to diversify the products base, sustain profitability levels and manage forex risk are the


Background

Divi’s Laboratories Limited (DLL) was incorporated in 1990 by Dr Murli K Divi. DLL have four manufacturing units

and three R&D centers spread across the states of Telangalna and Andhra Pradesh. To meet growing demand from

export markets for generics and custom synthesis, the company set up a new SEZ (DSN SEZ) at Vishakapatanam,

Andhra Pradesh state, which has become fully operational by end of FY14. DLL is engaged in the manufacturing of

generic APIs, Custom Synthesis (CS) of active ingredients for innovator companies and other speciality chemicals

like peptides and nutraceuticals.

In FY14, DLL has reported a total operating income of Rs.2,597.59 crore [Rs.2,176.36 crore in FY13] and a PAT of

Rs.791.72 crore (Rs.611.42 crore in FY13). Furthermore during Q1FY15, the company has reported net profit of

Rs.167.93 crore against the total income of Rs.642.66 crore.



247

Brief Rationale

Analyst Contact











248

Brief Rationale

October 07, 2014


Laxmiraj Distributors Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term/Short term Bank Facilities 20.00 CARE BB-/ CARE A4

(Double B Minus)/ (A Four) Reaffirmed


Rating Rationale

The ratings of Laxmiraj Distributors Pvt Ltd (LDPL) continue to remain constrained by the inherent low profitability

and high working capital intensity associated with the trading business, susceptibility of its operating margin to

volatile commodity prices, and its modest debt coverage indicators.

The ratings, however, continue to factor in more than three decades of experience of its promoters in the steel

trading business and its established relationship with key suppliers.

LDPL’s ability to increase its scale of operations and improve its profitability while efficiently managing working

capital requirements would be the key rating sensitivities. Any adverse impact of ongoing income tax litigation and

the ability of the promoters to infuse funds in that scenario considering the thin cash accruals of LDPL would also

remain a key rating sensitivity.

Background

LDPL was incorporated in 2005 by Mr Parasmal Jain & Mr Pavan Sanghvi. LDPL is an authorized dealer for the

distribution of Stainless Steel (SS) products of Jindal Stainless Ltd. (JSL) & Shah Alloys Ltd. (SAL); and for distribution

of Mild Steel (MS) products of Steel Authority of India Ltd (SAIL). LDPL has established its main warehousing facility

at Vadodara (Gujarat) and it mainly caters to the demand in and around the Vadodara region. The products traded

by LDPL are mainly used in the engineering and industrial goods segment.

Based on the audited results for FY14 (refers to the period April 1 to March 31), LDPL reported a total operating

income of Rs.122.37 crore (PY: Rs. 110.83 crore) and Profit after Tax (PAT) of Rs. 0.85 crore (PY: Rs.1 crore).

Analyst Contact






249

Brief Rationale






bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital

deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of

withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and

other relevant factors

250

Brief Rationale

October 07, 2014


Shree Cables & Conductors Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from Rs. 14.82 crore) CARE BBB-


Long term/Short term Bank Facilities 10 CARE BBB-/CARE A3

(Triple B Minus/A Three) Reaffirmed


Reaffirmed


Rating Rationale

The ratings continue to derive strength from the established track record of Shree Cables and Conductors Private

Limited (SCCPL) in the business of copper products and vast experience of the promoters, along with long-

association with its reputed clientele. The ratings also draw strength from the unencumbered fixed deposits

providing cushion to its liquidity.

The ratings, however, continue to be constrained by its modest scale of operations, low bargaining power vis-à-vis

its customers and suppliers, high working capital intensity of its operations, susceptibility of its operating margins

to volatile raw material prices and its presence in a fragmented industry.

The ability of SCCPL to increase its scale of operations and improve its profitability by managing volatility

associated with the key raw material prices are the key rating sensitivities. Furthermore, completion of the

ongoing expansion project within envisaged time and cost parameters and realisation of envisaged benefits

thereof would also be crucial.

Background

SCCPL was incorporated in 1986 by Mr D J Parekh at Bhopal, Madhya Pradesh. SCCPL is engaged in the

manufacturing and processing of a range of copper products including copper strips, flats, rounds and sections of

various dimension and profile. Bharat Heavy Electricals Limited (BHEL), Bhopal continues to be SCCPL’s major

customer since inception. Also, SCCPL’s products are approved by leading electrical equipment manufacturers and

power companies such as National Thermal Power Corporation Ltd (NTPC), Nuclear Power Corporation of India Ltd

(NPCIL), Power Grid Corporation of India Ltd (PGCIL), etc as well as various power distribution and transmission

companies.



251

Brief Rationale

During FY14 (refers to the period April 1 to March 31), SCCPL reported a PAT of Rs.0.64 crore on a total operating

income (TOI) of Rs.45.17 crore as against a PAT of Rs.0.71 crore on a TOI of Rs.44.83 crore in FY13. As per the

provisional results for 5MFY15, the company has reported a TOI of Rs.18.89 crore.

Analyst Contact

Name: Kalpesh Patel

Tel: 079-40265611

Mobile: 9909026322













factors

252

Brief Rationale

October 07, 2014


Honest Enterprise Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from Rs. 16.50 crore) CARE BB-


Short term Bank Facilities 20

(reduced from Rs.22 crore) CARE A4 (A Four)

Reaffirmed


Rating Rationale

The ratings continue to be constrained by the modest albeit growing scale of operations of Honest Enterprise

Limited (HEL), its thin profitability margins which are vulnerable to volatile metal prices and foreign exchange rate,

modest debt coverage indicators and high leverage. HEL’s low bargaining power with the suppliers, presence in a

highly fragmented metal trading business and its working capital intensive operations further constrain the ratings.

The ratings, however, continue to derive strength from the vast experience of the promoters of HEL in the metal

trading business as well as its diversified clientele.

The ability of HEL to increase its scale of operations, improve its profitability and capital structure, while managing

the volatility associated with the traded goods prices and effectively managing its working capital requirements are


Background

Vadodara-based, HEL was incorporated as a private limited company in August 1999. HEL mainly trades in Stainless

Steel (SS) flat products including coils, plates, sheets, etc. HEL is also engaged in merchandise trade (third country

export) and has been awarded the ‘Star Export House’ status by the Government of India (Foreign Trade

Department) for excellence in exports. HEL is also the consignment agent for BRG Iron & Steel Co Pvt Ltd for the

Gujarat region. HEL has established its warehousing facility at Waghodia, Vadodara (Gujarat) and finds regular

demand for its products from the industrial clusters located in Gujarat.

During FY14 (refers to the period April 1 to March 31), HEL reported a PAT of Rs.0.84 crore on a total

operating income (TOI) of Rs.192.32 crore as against a PAT of Rs.0.65 crore on a TOI of Rs.144 crore in

FY13. As per the provisional results for 5MFY15, the company has reported a TOI of about Rs.62 crore.



253

Brief Rationale

Analyst Contact

Name: Kalpesh Patel

Tel: 079-40265611

Mobile: 9909026322













factors.

254

Brief Rationale

October 07, 2014


Swarna Tollway Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



CARE A

(Single A)

Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of Swarna Tollway Private Limited (STPL) continue to draw strength from

the experience of promoters, track record of healthy traffic growth with favourable traffic mix, commercial

importance of the project highway, comfortable liquidity & maintenance of Debt Service Reserve Account (DSRA)

and Major Maintenance Reserve (MMR) in the form of fixed deposits. The rating is, however, constrained by

inherent revenue and traffic risks associated with toll-based projects, O&M risk and interest rate risk.

The ability of the company to achieve the envisaged toll revenue and successfully complete the second cycle of

major maintenance activity within the envisaged cost and timelines and/or occurrence of force majeure events are

viewed as the key rating sensitivities.

Background

Swarna Tollway Private Limited (STPL) is a Special Purpose Vehicle (SPV) incorporated in May 2001 by CIDB

Inventures SDN BHD (CIDBI) and the investment companies of prominent Malaysian construction firms IJM

Corporation Berhad (IJM), WCT Engineering (WCT), Bumi Hiway Ventures (BHV) and MTD Capital (MTD) to

undertake the implementation of a road project in Andhra Pradesh (AP) on a BOT basis, pursuant to the

Concession Agreement (CA), dated May 27, 2001, entered into on a government-to-government basis between

Government of Malaysia and Government of India, through CIDBI and NHAI respectively. However in FY14 (refers

to the period April 01 to March 31), IJM acquired shares of WCT, 17%, BHV, 17% and MTD, 11%. As on March 31,

2014, IJM group holds around 70% stake in STPL and the remaining 30% are held by CIDBI.

The project envisaged strengthening and widening of the existing two-lane road to four-lane divided carriageway

and operation and maintenance of (a) 54.383 km to 165.183 km stretch on the Tada-Nellore section of NH-5

(Section – I), (b) 221.14 km to 257.34 km stretch on the Nandigama-Ibrahimpatnam section of NH-9 (Section – II)

and (c) existing four-laned 257.34 km to 270.34 km stretch on Ibrahimpatnam-Vijayawada section of NH-9 (Section

III). The concession is for a period of 30 years from the appointed date of September 26, 2001. Tolling operations

commenced on Section-I from May 2004 and on Section –II and III from September 2004.



255

Brief Rationale

During FY14 (refers to the period April 1 to March 31), STPL has earned PAT of Rs.51.08 crore (Rs.29.84 crore in

FY13) on a total operating income of Rs.174.10 crore (Rs.167.06 crore in FY13).

Analyst Contact


Tel: +91 40102030













factors.

256

Brief Rationale

October 07, 2014

CARE revises the ratings assigned to the bank facilities of GHCL Ltd.

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



CARE BBB+ (Triple B Plus)



1,183 (enhanced from 998)

CARE BBB+/CARE A3+ (Triple B Plus/A Three Plus)

Revised from CARE BBB/CARE A3 [Triple B/A Three]


Rating Rationale The revision in the ratings of GHCL Ltd (GHCL) takes into account favourable demand supply dynamics of the Indian soda ash industry as reflected by steady increase in sales realizations. This has led to an improvement in the profitability of GHCL during Q1FY15 (refers to the period April 1 to June 30) on a year-on-year (y-o-y) basis. The rating revision also factors in the comfortable liquidity position of GHCL despite repayment of large liabilities on account of healthy cash flow from operations.

The ratings continue to factor GHCL’s established position in the domestic soda ash industry, its healthy operating efficiencies and improvement in performance of the textile division.

The ratings continue to be constrained by its high leverage on account of write-off of investments/advances related to overseas subsidiaries which have closed down their operations and its moderate debt protection indicators. The ratings are further constrained by inherent cyclicality associated with the textile industry.

The ability of GHCL to generate envisaged cash accruals while further improving the performance of the home textile division and infuse long-term funds to rationalize its debt levels would be the key rating sensitivities. Furthermore, execution of any large-sized predominantly debt-funded project would also be a key rating sensitivity.

Background Incorporated in 1983, GHCL is a leading player in the domestic soda ash industry. Over the years, the company has also diversified into manufacturing of yarn and home textiles. The soda ash manufacturing plant of GHCL is located at Sutrapada in Gujarat (installed capacity – 8.50 lakh metric tonne per annum [MTPA] as on March 31, 2014) while its yarn manufacturing facility is located at Madurai in Tamil Nadu (1,48,760 spindles) and home textile unit is located at Vapi in Gujarat (processing capacity of 1 lakh meter per day). During FY14 (refers to the period April 1 to March 31), the soda ash division contributed 53% to its standalone total operating income and 73% to the profit before interest, lease, depreciation and tax (PBILDT) of GHCL. The promoters hold 17.59% stake in the company as on June 30, 2014.

Based on the audited financials of FY14, GHCL registered a total operating income of Rs.2,229 crore (FY13: Rs.2,126 crore)and a profit after tax (PAT) of Rs.116 crore (FY13: Rs.115 crore). Furthermore, as per the provisional results for Q1FY15, GHCL reported a total operating income of Rs.560 crore (Q1FY14: Rs.506 crore) and a PAT of Rs.61 crore (Q1FY14: Rs.28 crore).



257

Brief Rationale

Analyst Contact

Name: Maulesh Desai

Tel: 079-40265605










258

Brief Rationale

October 07, 2014

CARE revises ratings assigned to the bank facilities of

Banswara Syntex Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities-Term loan



Revised from CARE BBB (Triple B)

Long-term Bank Facilities-Fund-based

500 (enhanced from Rs.450 crore)



Short-term Bank Facilities-Non-fund Based


CARE A3+ (A Three Plus)

Revised from CARE A3 (A Three)

Total facilities 911.16


Fixed Deposit 30 CARE BBB+ (FD) [Triple B

Plus (Fixed Deposit)] Assigned

Rating Rationale

The revision in the ratings of the bank facilities of Banswara Syntex Ltd (BSL) factors in the improvement in

financial risk profile during FY14 (refers to the period April 01 to March 31) marked by an improvement in

profitability margins and overall gearing.

The ratings continue to derive strength from the experience of the promoters in the Textile industry, integrated

presence across the textile value chain and diversified product profile.

The ratings however are constrained by the leveraged capital structure and thin profitability margins. The ratings

are further constrained by fluctuation in the prices of raw materials, forex movements imparting volatility to the

profitability and intense competition in the sector.

Ability of BSL to scale up operations and improve the capital structure and profitability margins remains the key


Background

Banswara Syntex Limited (BSL) was incorporated in 1976 as a joint sector company between Rajasthan State

Industrial Development & Investment Corporation Ltd. (RIICO) and Mr R L Toshniwal (Chairman). Subsequently in

1982, Mr Toshniwal purchased the shares from RIICO. BSL started as a spinning mill and over the years emerged as

a vertically integrated mill with presence across the Textile value chain i e spinning, weaving and garments. BSL is

one of the large integrated Textile player in India manufacturing man-made synthetic blended yarn, wool and

wool mixed yarn, all type of fabrics including Jacquard furnishing fabrics, besides production of Readymade



259

Brief Rationale

Garments and Made-up's. It also manufactures Technical Fabrics. BSL is listed on NSE as well as BSE and had a

promoter holding of 55.23% as on June 30, 2014. It had a market capitalisation of approximately Rs.124 crore as

on September 26, 2014. It has manufacturing facilities spread across Banswara, Daman and Surat.

During FY14, BSL reported net sales and PAT of Rs.1119.24 crore and Rs.26.63 crore respectively vis-à-vis FY13,


Furthermore, during Q1FY15, BSL reported operating income and PAT of Rs.299.82 crore and Rs.4.91 crore

respectively vis-à-vis Q1FY14, wherein it reported net sales of Rs.283.32 crore and PAT of Rs.3.70 crore

respectively.

Analyst Contact


Tel: 022-67543505










260

Brief Rationale

October 07, 2014


Ramkrupa Ginning & Pressing Private Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long-term Bank Facilities 20 CARE B+

(Single B Plus) Revised from CARE B

(Single B)

Rating Rationale

The revision in the rating assigned to the bank facilities of Ramkrupa Ginning & Pressing Private Limited (RGPPL) is

primarily on account of an increase in the scale of operation and improvement in the capital structure and debt

coverage indicators during FY14 (refers to the period April 1 to March 31). The rating, however, continues to

remain constrained on account of thin profit margin coupled with its presence in the lowest segment of textile

value chain with limited value addition in the cotton ginning business and seasonality associated with the

procurement of raw material resulting into working-capital intensive nature of operations

The rating, however, continues to draw strength from the wide experience of the promoters in the cotton industry

and location advantage in terms of proximity to the cotton seed growing regions in Gujarat.

The ability of RGPPL to increase its scale of operations, improve its profit margins, capital structure and better

working capital management in light of the competitive nature of the industry remain the key rating sensitivities.

Background

Ramkrupa Ginning and Pressing Private Limited (RGPPL) incorporated in the year 2006, is promoted by

MrBipinbhai Gondaliya. RGPPL is into the business of cotton ginning and pressing and trading of clean cotton.

RGPPL is a family centric business and is completely owned and managed by the family members with four

directors, who have more than 15 years of experience in the cotton industry. RGPPL is engaged in ginning &

pressing of raw cotton to produce cotton bales, cotton seeds and cotton lint with a manufacturing and production

facility located at Gondal region, Gujarat which is one of the leading cotton producing states in India.

During FY14, RGPPL reported a TOI of Rs.100.01 crore and PAT of Rs.0.10 crore as against TOI of Rs.95.73 crore and

PAT of Rs.0.06 crore during FY13.

Furthermore during 5MFY15, RGPPL has reported a TOI of Rs.22.10 crore.

Analyst Contact Name: Nitin Jha Tel: (079) 40265656 Email: mailto:[email protected]

1 Complete definition of the ratings assigned are available at http://www.careratings.com and other CARE publications

261

Brief Rationale




262

Brief Rationale

October 07, 2014

CARE revises and reaffirms the ratings assigned to the bank facilities of

Compuage Infocom Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



CARE BBB (Triple B )

Revised from CARE BBB - [Triple B Minus]



CARE A3+ (A Three Plus)

Reaffirmed


Rating Rationale

The rating revision takes into consideration the consistent improvement in scale of operations resulting into

operating efficiency.

The ratings continue to derive strength from CIL’s professionally qualified and experienced management with long

track record in IT distribution business, its large scale of operations with a prominent position in domestic IT

distribution industry, widespread distribution network and well diversified mix of products and vendors.

The ratings, however, continue to be constrained by the company’s high leverage arising out of working capital

intensive nature of operations, low profitability margins, highly competitive nature of the IT distribution business

and inherent technological obsolescence risks.

The ability of the company to improve its capital structure and profitability margins remains the key rating

sensitivity.

Background

Compuage Infocom Limited (CIL), promoted by Mr. Atul Mehta, Mr. Ajay Mehta and Mr. Bhavesh Mehta in 1987, is

a distributor of over 27 major global IT brands in India. CIL’s traded product portfolio includes monitors, laptops,

PC hardware components, computer peripherals like printers, scanners, pen drives, software, computer

accessories, digital cameras and mobile handsets. These products are sold to system integrators, corporate

resellers, Original Equipment Manufacturers (OEMs), system assemblers and large format retailers. The company

procures majority of its supplies of computers, computer peripherals and mobile phones from the local units of the

vendors.

For FY14 (refers to period April 1st to March 31st) , CIL reported a total operating income of Rs.2286.25 crore and a

PAT of Rs.11.16 crore as compared to a total operating income of Rs.1904.65 crore and a PAT of Rs.8.14 crore



263

Brief Rationale

during FY13. For the quarter ended June 30, 2014, the company reported a total operating income of Rs.519.79

crore and a PAT of Rs.1.70 crore.

Analyst Contact

Name: Arunava Paul

Tel: 022 6754 3667











264

Brief Rationale

October 07, 2014


Enaltec Labs Private Limited

Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long-term Bank Facilities 6.11 CARE BBB (Triple B)

Revised from CARE

BBB-(Triple B Minus)


(A Three Plus)

Revised from CARE A3

(A Three)


Rating Rationale

The revision in ratings of the bank facilities of Enaltec Labs Private Limited (ELPL) takes into account the receipt of

approval from US Food and Drug Administration (USFDA) leading to significant improvement in orders and

thereby cash accruals and debt protection metrics.

The ratings continue to derive strength from the experienced management, diversified product portfolio, wide

geographical presence, efficient research & development activities and favourable industry outlook.

The ratings, however, continue to be constrained by its relatively modest scale of operations, working

capital intensive nature of operations, and presence in the highly competitive Active Pharmaceutical

Ingredients (APIs) industry. The ratings are further constrained by profitability margins being susceptible

to the volatile raw material prices & exposure to foreign currency fluctuation risk owing to the export

focus.

ELPL’s ability to achieve the envisaged revenue and profitability coupled with efficient management of the working

capital cycle and any unprecedented increase in the envisaged debt level are the key rating sensitivities.

Background

Incorporated in 2006, Enaltec Labs Private Limited (ELPL) is engaged in manufacturing and trading of active

pharmaceutical ingredients (API’s). Furthermore, over the years, ELPL has moved towards providing end to end

pharmaceutical solutions. Moreover, ELPL is primarily focused on exports market which contributed around 80% of

total revenue during FY14 (70% during FY13).

ELPL has an owned manufacturing facility located at Ambernath (Maharashtra). The facility is WHO-GMP certified

& had also received the USFDA approval in January 2014. In addition to the above owned unit, ELPL has two loan



265

Brief Rationale

license units (cGMP certified),one each at Nasik (Maharashtra) & Bidar (Karnataka, taken in FY14) engaged in

manufacturing products for semi-regulated and less regulated markets.

Furthermore, the company also has its in-house Research & Development facility at Ambernath. A UAE-based

investment company holds 70% stake in ELPL as on March 31, 2014. However, the management of ELPL is

controlled by local promoters.

Analyst Contact

Name: Nitesh Dhoot












266

Brief Rationale

October 07, 2014


Damodar Industries Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities -Term loan


CARE BBB (Triple B)


Long-term Bank Facilities - Fund-based


CARE BBB (Triple B)


Short-term Bank Facilities - Non-fund Based

6 (reduced from Rs.10 crore)

CARE A3 (A Three)

Reaffirmed



Fixed Deposit 15 CARE BBB (FD) [Triple B

(Fixed Deposit)]

Revised from CARE BBB- (FD) [Triple B Minus (Fixed

Deposit)]

Rating Rationale

The revision in the long term rating of bank facilities/instruments of Damodar Industries Ltd (DIL) factors

in improvement in financial risk profile during FY14 (refers to the period April 01 to March 31) in overall

gearing.

The ratings continue to derive strength from the experience and the resourcefulness of the promoters in

the textile industry especially spinning segment, diversified product profile and increasing scale of

operations.

The ratings are, however, constrained by thin profitability margins, fluctuation in the prices of raw

materials, forex movement imparting volatility to the profitability and intense competition in the sector.

The ability of DIL to scale up operations along with managing its operating cycle and improve its

profitability margins remain the key rating sensitivities.

Background

Damodar Industries Limited (DIL, erstwhile Damodar Threads Limited) was incorporated on December 11, 1987 by

Mr Arun Biyani and his brothers Mr Ajay Biyani and Mr Anil Biyani. DIL is primarily engaged in the manufacturing of

cotton/polyester/polyester blended value added yarn. It specializes in manufacturing of linen, silk like yarns, 100%

cotton, 100% polyester, poly/viscose yarns, etc. DIL’s core business activities can be divided amongst three



267

Brief Rationale

categories i.e. manufacturing of yarn, processing of yarn procured from other spinners and trading of yarn. During

FY12, DIL has started manufacturing fabrics on outsourcing basis. In the same year it has also started an FMCG

division where in it sells products in the name of Calves N Leaves. However, the size of this business remains

minuscule. As on June 30, 2014; spinning capacity stood at 49,020 spindles and its manufacturing facility is located

at Daman and Dadra & Nagar Haveli. DIL is listed on BSE and as on June 30, 2014 it had a promoter holding of

67.28% (out of which 10.70% shares were pledged). It had a market capitalization of approximately Rs.48 crore as

on September 26, 2014.

During FY14, DIL reported net sales and PAT of Rs.734.98 crore and Rs.14.78 crore respectively vis-à-vis FY13,


Furthermore during Q1FY15, DIL reported operating income and PAT of Rs.151.21 crore and Rs.2.76 crore

respectively vis-à-vis Q1FY14, wherein it reported net sales of Rs. 169.50 crore and PAT of Rs.4.54 crore

respectively.

Analyst Contact


Tel: 022-67543505










268

Brief Rationale

October 07, 2014

CARE revises the ratings assigned to the bank facilities of Axtel Industries Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Triple B Minus) Revised from CARE BBB

[Triple B]

Long term/Short term Bank Facilities 16 CARE BBB-/CARE A3

(Triple B Minus/A Three)

Revised from CARE BBB/CARE A3+

[Triple B/A Three Plus]


Rating Rationale

The revision in the ratings assigned to the bank facilities of Axtel lndustries Limited (AIL) is primarily due to notable

decline in the total operating income (TOI) during FY14 (refers to the period April 1 to March 31) on account of

economic slowdown and increased competition, higher net loss during Q1FY15 as against Q1FY14 with moderate

order book position and elongation of the operating cycle.

The ratings continue to remain constrained on account of AIL’s modest scale of operations, customer

concentration risk and fluctuating profitability margins due to volatility in raw material prices.

The ratings, however, continue to derive strength from the extensive experience of the promoters in

manufacturing of food processing machines, its established operational track record of more than two decades

and reputed clientele. The ratings further continue to derive strength from AIL's moderately comfortable credit

risk profile marked by lower reliance on external debt, comfortable debt coverage indicators and moderate

liquidity position.

AIL's ability to improve its scale of operations, improve its order book position while maintaining its profitability

and capital structure with efficient working capital management are the key rating sensitivities.

Background

AIL incorporated in 1991 as Advanced Extrafoil Technology and Exports Limited, was promoted by Mr Ajay Parikh

and Mr Ajay Desai. AIL is engaged in the manufacturing food processing machinery and equipments. AIL

manufactures machineries like frying systems, process tanks, batching and mixing systems, refiners & cutters,

feeders, steaming tunnels etc which find use in the food processing industry. The company primarily caters to the

domestic market and generated around 96% of its TOI during FY14 from domestic sales.

As per the audited results for FY14, AIL reported a TOI of Rs.48.34 crore [FY13: Rs.60.72 crore] and a PAT of Rs.2.76

crore [FY13: Rs.3.38 crore]. As per the provisional for Q1FY15, AIL reported TOI of Rs.5.09 crore and net loss of

Rs.4.31 crore.

Analyst Contact

Name: Nitin Jha Tel: (079) 40265656 Email: [email protected]




269

Brief Rationale












factors.

270

Brief Rationale

October 07, 2014 CARE revises ratings assigned to the bank facilities of

Birla Ericsson Optical Ltd. Ratings Facilities Amount

(Rs. Crore) Rating1 Remarks

Long Term bank facilities 40.00 CARE A- (SO) [Single A Minus (Structured

Obligation)]


Obligation)]

Short Term bank facilities 128.00 CARE A2 (SO) [A Two (Structured

Obligation)]

Revised from CARE A3 (SO)

[A Three (structured Obligation)]

Total facilities@ 168.00

@ backed by unconditional and irrevocable corporate guarantee provided by Vindhya Telelinks Ltd. (VTL)

Rating Rationale The above ratings are based on the credit enhancement in the form of irrevocable corporate guarantee provided by Vindhya Telelinks Ltd. (VTL) [VTL, Rated CARE A-/A3] for the bank facilities of Birla Ericsson Optical Ltd. (BEOL)

The rating revision factors healthy order-book position of VTL providing revenue visibility, improved operating performance and margins with stable financial risk metrics in FY14 (refers to the period April 1 to March 31) and diversification in customer base. The rating continues to derive comfort from strong promoters’ experience in the cable industry, continued support from the promoter group companies and stable outlook for overall telecom industry.

The ratings are, however, constrained by the working capital-intensive nature of operations with high receivable days translating into moderate liquidity profile.

The ability of the company to improve its liquidity profile by efficient management of debtors, sustain gearing levels amidst growing operations and maintain profitability levels are the key rating sensitivities.

Background Birla Ericsson Optical Ltd. (BEOL), incorporated in 1992, is a joint venture between M.P.Birla Group [Universal Cables (holding 13%) rated CARE BBB+/ CARE A2+ and Vindhya Telelinks Ltd. (holding 13.13%) rated CARE A-/ CARE A2] and Ericsson Cables AB, Sweden (27.5%). It is engaged in manufacture and marketing of optical fibre cables (over 90% of total revenues in FY14) and other related products viz. copper cables and specialty cables. The company has a manufacturing plant at Rewa, Madhya Pradesh with an annual capacity of 10 lacs FKM. The company is currently headed by Mr. Harsh V. Lodha. On total income of Rs.295.22 crore for FY14 (refers to April 1 to March 31), BEOL reported PAT of Rs.19.24 crore.

About the Guarantor (Vindhya Telelinks Ltd.)

Vindhya Telelinks Limited (VTL), was incorporated in 1983 as a public- private joint venture between M.P. Birla group’s Universal Cables Ltd. (UCL holding 29.15% as on March 31, 2014) [rated CARE BBB+/A2+] and Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC holding about 0.24% as on March 31, 2014). VTL is engaged in manufacturing and selling of telecom cables that contributed ~64% to the net sales in FY14 comprising of Jelly Filled Telephone cables (JFTC), Optical Fibre Cables (OFC) and other types of wires & cables, etc.

1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications

271

Brief Rationale

It also offers Engineering, Procurement & Construction (EPC) services to the telecom, power sector, gas distribution pipelines and sewage projects forming balance 36% of the net sales in FY14. VTL has major presence in the domestic market which contributed to 90% of the total income for FY14. In the export segment, the company mainly caters to countries like Nepal (48%), Poland (25%) and Egypt (15%).

VTL registered a Profit After Tax (PAT) of Rs.20.86 crore on a total operating income (OI) of Rs.430.33 crore in FY14 as against PAT of Rs.5.74 crore on a OI of Rs.345.86 crore in FY13. The company reported operating income of Rs.119.81 crore and PAT of Rs.5.56 crore for Q1FY15.

Analyst Contact Name: Ashvini Patil Tel - +91-22-67543431 Email: [email protected]

CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments.


272

Brief Rationale

October 07, 2014


Vindhya Telelinks Ltd

Ratings


Rating1 Remarks

Long term Bank Facilities (Fund based)

335.00 (enhanced from Rs.95 crore)

CARE A- (Single A Minus)


Long term rupee loan 13.00 CARE A- (Single A Minus)

Assigned

Short term Bank Facilities 576.97 (enhanced from Rs.260.97

crore)

CARE A2 (A Two)

Revised from CARE A3 (A Three)


Rating Rationale

The rating revision factors healthy order-book position of VTL providing revenue visibility, improved

operating performance and margins with stable financial risk metrics in FY14 (refers to the period April

1 to March 31) and diversification in customer base. The rating continues to derive comfort from strong

promoters’ experience in the cable industry, continued support from the promoter group companies

and stable outlook for overall telecom industry.

The ratings are, however, constrained by the working capital-intensive nature of operations with high

receivable days translating into moderate liquidity profile.

The ability of the company to improve its liquidity profile by efficient management of debtors, sustain

gearing levels amidst growing operations and maintain profitability levels are the key rating sensitivities.

Background

Vindhya Telelinks Limited (VTL), was incorporated in 1983 as a public- private joint venture between

M.P. Birla group’s Universal Cables Ltd. (UCL holding 29.15% as on March 31, 2014) [rated CARE

BBB+/A2+] and Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC holding

about 0.24% as on March 31, 2014). VTL is engaged in manufacturing and selling of telecom cables that

1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications.


273

Brief Rationale

contributed ~64% to the net sales in FY14 comprising of Jelly Filled Telephone cables (JFTC), Optical

Fibre Cables (OFC) and other types of wires & cables, etc. It also offers Engineering, Procurement &

Construction (EPC) services to the telecom, power sector, gas distribution pipelines and sewage projects

forming balance 36% of the net sales in FY14. VTL has major presence in the domestic market which

contributed to 90% of the total income for FY14. In the export segment, the company mainly caters to

countries like Nepal (48%), Poland (25%) and Egypt (15%).

VTL registered a Profit After Tax (PAT) of Rs.20.86 crore on a total operating income (OI) of Rs.430.33

crore in FY14 as against PAT of Rs.5.74 crore on a OI of Rs.345.86 crore in FY13. The company reported

operating income of Rs.119.81 crore and PAT of Rs.5.56 crore for Q1FY15.

Analyst Contact

Name: Ashvini Patil Tel - +91-22-67543431 Email: [email protected]










274

Brief Rationale

October 07, 2014


Whitelotus Industries Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long -term Bank Facilities 25.27 CARE D

(Single D) Revised from CARE B+

(Single B Plus)

Rating Rationale

The revision in the ratings assigned to the bank facilities of Whitelotus Industries Limited (WIL) was primarily on

account of delays in debt servicing leading to weak liquidity position.

Establishing a track record of timely debt servicing along with improvement in the liquidity position is the key

rating sensitivity.

Background

Surat-based, WIL is promoted by Mr. Sumant Jalan and his family members in April, 2011. WIL started its

commercial production in February, 2013 for manufacturing of metalized yarn which is used in textile industry and

printed laminated roll which is used as a flexible packaging material in various industries. WIL has an installed

capacity of 3,360 metric tonnes per annum (MTPA) for coating metalized polyester film, 1,200 MTPA for blown film

and 2,640 MTPA for manufacturing printing laminated sheet as on March 31, 2014.

Analyst Contact

Name: Mr Nitin Jha

Tel: 079-4026 5656













factors.




275

Brief Rationale

October 07, 2014

CARE revises and reaffirms rating to the bank facilities of

Prabhat Elastomers Pvt. Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


CARE BB

(Double B)

Revised from CARE BB-

(Double B Minus)

Short term Bank Facilities 19 CARE A4 (A Four) Reaffirmed


Rating Rationale

The revision in the long-term rating takes into the account, improvement in the financial risk profile of Prabhat

Elastomers Private Limited (PEPL) characterised by growth in net sales and improvement in its capital structure and

debt coverage indicators.

The rating continues to be constrained by its relatively small scale of operations, weak debt coverage indicators

and elongated working capital cycle resulting in high utilization of the working capital limits. Furthermore, project

execution risk and presence in the cyclical industry along with the regulatory risk constrains the ratings.

The ratings continue to derive strength from the long track record of operations, promoter’s experience and their

financial support along with healthy operating margins. Furthermore, the rating continues to factor in PEPL

diversified product and presence in different geographies.

PEPL’s ability to efficiently manage the working capital cycle and maintain the operating profitability margins are

the key rating sensitivity.

Background

Incorporated in 1992, Prabhat Elastomers Private Limited (PEPL) is a part of the Prabhat group (established in

1960s) and was promoted by Mr Haruskhlal K. Dhruv, Mr Yogesh H. Dhruv, Mr Umesh H. Dhruv and Mr Suresh K.

Dhruv. PEPL is engaged in the manufacturing of rubber gaskets & primarily caters to the portable, sewage water

pipeline manufacturers, household appliance manufacturers (i.e. pressure cooker). Going forward, PEPL plans to

supply to the pharmaceutical and automobile industry as well. The manufacturing operations are carried out in the

plant located in Gujarat with an installed capacity of 3,000 MT per annum. The company also holds a US patent



276

Brief Rationale

‘INLUBE’ to supply rubber gasket in the US market. Besides manufacturing, the company also has a windmill which

produces 1.6 KW of power, which is directly supplied to Gujarat Electricity Board (GEB).

During FY14 (refers to the period April 1 to March 31), PEPL reported a total operating income of Rs.57.74 crore

(vis-a-vis Rs.48.53 crore in FY13) and PAT of Rs.2.05 crore (vis-a-vis Rs.1.73 crore in FY13). Furthermore as per

provisional 4MFY14, PEPL has posted a total operating income of Rs.20 crore. Moreover as on September 02, 2014,

PEPL has an order book of Rs.22.47 crore to be primarily executed by FY15.

Analyst Contact

Name: Mr Nitesh Dhoot

Tel: 022-6754 3442











277

Brief Rationale

October 07, 2014

CARE revises and reaffirms rating assigned to the bank facilities & STD/CP programme of

IFGL Refractories Ltd. Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from26.88) CARE AA-

(Double A minus) Revised from CARE A+

(Single A plus)

Short Term Bank Facilities 13.00

(enhanced from 12.00) CARE A1+

(A One plus) Reaffirmed

Long term/ Short term Bank Facilities


CARE AA-/CARE A1+ (Double A minus/

A One plus)

Revised from CARE A+ (Single A plus) and reaffirmed CARE A1+(A

one plus)


Short Term Debt (including Commercial Paper)*

10.00 CARE A1+

(A One plus) Reaffirmed

Total Instruments 10.00

*carved out of fund based working capital limit

Rating Rationale

The revision in rating takes into account the improvement in the financial risk profile of the company marked by

improvement in the profit level & margins & gearing ratios and strong debt protection metrics. The rating also

draws strength from the experience of the promoters and their strong technical collaboration, established brand

image with prominent position in the domestic refractory segments. The ratings also take into account the

improvement in the consolidated financial performance of the company.

The ratings are, however, constrained by price volatility of the raw materials with limited pricing power, exposure

to group companies, foreign exchange fluctuation risk, major dependence on the fortunes of steel industry with

increasing competition arising out of cheaper imports and presence of a number of unorganized players.

The sales price realization coupled with the movement of Euro currency vis-à-vis Rupee, key raw material prices

and prospects of the steel industry remain the major ratings sensitivities.

Background

IFGL, incorporated in 1989, is the flagship company of S K Bajoria group of Kolkata. The company is engaged in

manufacturing of special refractories and operating systems for the steel industry and bio-ceramic products at its

factory at Kalunga Industrial Estate near Rourkella, Orissa. Currently, the company has aggregate manufacturing

capacity of shaped refractories (7,76,000 pcs), unshaped refractories (24,000 MT), shaped ceramics (10,000 pcs)

and unshaped ceramics (50.0 kg).

IFGL earned PBILDT of Rs.45.0 crore and PAT (after defd. tax provision) of Rs.24.3 crore on Total Operating Income

of Rs.327.4 crore in FY14.

The company earned PAT of Rs.7.0 crore on Total Operating Income of Rs.81.0 crore in the quarter ended June 30,

2014.



278

Brief Rationale

Analyst Contact


Tel: 033-40181609

Mobile: +91 9051730850













factors.

279

Brief Rationale

October 07, 2014

CARE places the rating assigned to the bank facilities of

Hetero Med Solutions Limited On Creditwatch

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Triple B Minus) Placed on credit watch


Rating Rationale

The above ratings have been placed under ‘credit watch’, following Hetero Med Solutions Limited (HMSL) entering

into a memorandum of understanding with Apollo Hospitals Enterprise Ltd for acquisition of all of its retail

pharmacy stores currently operated in the states of Telangana, Andhra Pradesh and Tamil Nadu. The acquisition is

subject to completion of due diligence and other statutory formalities.

CARE is in the process of evaluating the impact of the above developments on the credit quality of HMSL and

would take a view on the rating when the exact implications of the above are clear.

The rating assigned to the bank facilities of Hetero Med Solutions Limited continues to take into account the

strength of the promoter group, the promoter’s experience in the pharmaceutical industry, established

relationship with the suppliers through group companies, the comfortable capital structure and strategic locations

of the stores. The rating is, however, constrained by the geographical concentration of the revenue, the working

capital intensive nature of the business, thin profitability margins and highly fragmented industry with competition

from existing organised and numerous unorganised players. The ability of the company to improve its revenue per

store, profitability and increase the number of stores along with geographical diversification without deterioration

in financial risk profile are the key rating sensitivities.

Background

Incorporated in 2007, Hetero Med Solutions Limited (HMSL) belongs to the Hyderabad-based Hetero group. HMSL

is engaged in the retail distribution of medicines, surgical and healthcare products through a chain of retail stores

under the brand name of “Hetero Pharmacy” located in Andhra Pradesh and Tamil Nadu. HMSL is promoted by

Hetero Labs Limited (50%) [Rated CARE A/CARE A1] and Hetero Drugs limited (50%) [Rated CARE A-/CARE A2

placed under Credit watch]. As on September 30, 2013, the company has 264 outlets, out of which 235 outlets are

in Andhra Pradesh and 29 outlets are in Chennai. The company is managed by Mr Vamsi Krishna Bandi (managing

director), son of Dr B Parthasaradhi Reddy, chairman of Hetero Drugs Limited and Hetero Labs Limited.



280

Brief Rationale

During FY13 (refers to the period April 01 to March 31), HMSL earned a PAT of Rs.0.56 crore (Rs.0.49 crore in FY12)

on a total income of Rs 141.24 crore (Rs 126.22 crore in FY12).

Analyst Contact











281

Brief Rationale

October 07, 2014

CARE places the ratings assigned to Bank Facilities of

Gvk Power (Goindwal Sahib) Limited On Credit Watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 2400 CARE BBB-

(Triple B Minus)[Credit Watch]

Placed on credit watch


[Credit Watch] Placed on credit watch


Rating Rationale

The above ratings have been placed under ‘credit watch’, in view of the Supreme Court of India’s verdict on de-

allocation of coal block cancelling allocation of 214 out of 218 coal blocks including the allocation of Tokisud Coal

Block on which GVK Power (Goindwal Sahib) Limited (GPGSL) was dependent for coal supply. In view of the above

judgment there is uncertainty regarding the sourcing of coal for GPGSL’s operations.

CARE will monitor development in this regard and take a view on the rating when the exact implications of the

above are clear.

The ratings continue to drive strength from the strong and experienced promoter group, achievement of financial

closure, Power Purchase Agreement (PPA) with Punjab State Power Corporation Ltd (PSPCL) for 100% generation,

fixed time & fixed price EPC contract, government support for the power sector and persistent demand supply gap

for power in the state of Punjab. The ratings are, however, constrained by time and cost overrun in project

implementation and counter party credit risk associated with the sole off taker PSPCL.

The ability of the company to achieve the commercial operations as per the revised schedule and ensure coal

availability would be the key rating sensitivity.

Background

Incorporated in 1998, GVK Power (Goindwal Sahib) Limited (GPGSL) is a wholly owned subsidiary of GVK Energy

Limited, which in turn is the subsidiary of GVK Power and Infrastructure Limited (GVKPIL) [rated CARE BBB+/CARE

A3+] the flagship company of the GVK group. GPGSL is implementing a 540 MW (2*270MW), coal-fired thermal

power project at Goindwal Sahib, District Tarn Taran, Punjab. Ministry of Coal (MoC) had allotted Tokisud (North

block) coal mine, Jharkhand with mineable reserves of 51.97 million (mn) tonne to GPGSL for development on

captive basis for its power plant. GPGSL has executed Coal Supply Agreement (CSA) with GVK Coal (Tokisud)

Company Private Limited (GCTCPL) [rated CARE BBB-] and Coal Transportation Agreement (CTA) with Eastern

Central Railway (ECR) for transportation of coal from Tokisud mines to GPGSL plant site.



282

Brief Rationale

GPGSL has executed an amended and restated PPA (for 25 years) with PPPCL on May 26, 2009 for the sale of entire

electricity to be generated through a two-part tariff structure.

The original scheduled Commercial Operation Date (COD) of the project was February 01, 2013 as per the facility

agreement with Lenders which was postponed to May 01, 2013, then to April 01, 2014 and now to December 01,

2014. Time overrun from April 01, 2014 to December 2014 is mainly on account of delay in possession of land for

railway siding and railway notification and approvals and arrangement for alternative coal supply. The company

has made short term coal purchase arrangements from Coal India Ltd (CIL) for 1.5 lac tonnes for testing the plant

and also received coal linkage for a quantity of 2 lakh tonnes per month each for next 6 months starting from

December’14.

Analyst Contact

Name: Vidhyasagar L

Tel: +91-40-40102030










283

Brief Rationale

October 07, 2014

CARE places the ratings assigned to Bank Facilities of

Gvk Coal (Tokisud) Company Pvt Limited On Credit Watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Triple B Minus)[Credit Watch]

Placed on credit watch


Rating Rationale

The above rating has been placed under ‘credit watch’, in view of Supreme Court of India’s verdict on de-allocation

of coal block cancelling allocation of 214 coal blocks which includes Tokisud North Sub-Block coal mine in South

Karanpura Coalfield situated in Jharkhand which was allocated to GVK Coal (Tokisud) Company Private Limited

(GCTCPL) for mine development. In view of the above verdict, there is uncertainty over the mining operations of

GCTCPL. CARE will monitor developments in this regard and would take a view on the rating when the exact

implications of the above are clear.

The rating continues to take into account the experience of the GVK group in the infrastructure sector, declaration

of project Commercial Operation Date (COD) in June 2014, and the overall government support for the power

sector. The rating is however constrained by cost escalation on account of increase in mine development cost and

lack of prior experience of the group in execution and operation of mining projects.

Background

GVK Coal (Tokisud) Company Private Limited (GCTCPL) is a special purpose vehicle (SPV), formed by GVK Energy

Ltd. GVK Energy is the subsidiary of GVK Power & Infrastructure Limited (GVKPIL, rated CARE BBB+/CARE A3+,

flagship Company of the GVK Group). GCTCPL is implementing a project envisaging development of ‘Tokisud North

Sub-Block’ coal mine with mineable reserves of about 52 million tonnes in South Karanpura Coalfield situated in

the Hazaribagh district, State of Jharkhand. The coal mine is being developed as a captive mine for GVK Power

(Goindwal Sahib) Limited (GPGSL), 540 MW power plant, rated CARE BBB-/CARE A3 (Placed under Credit Watch),

which is estimated to have an annual coal requirement of 2.25 million tonnes per annum (MTPA) at 85% Plant

Load Factor (PLF). The power plant is expected to start generation from April 2014.

GVK Coal (Tokisud) Company Private Limited (GCTCPL) declared COD on June 30, 2014 against June 30, 2013

envisaged. The delay in COD was due to change in requirement of infrastructure such as bridge, railway siding etc.

Analyst Contact

Name: Vidhyasagar L

Tel: +91-40-40102030




284

Brief Rationale









285

Brief Rationale

October 07, 2014


Vennar Ceramics Ltd & removes the ratings from ‘credit watch’

Ratings

Facilities* Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities

43.60 CARE BBB+ (SO)

[Triple B Plus (Structured Obligation)]


Obligation)] Removed from Credit Watch


1 CARE A3+ (SO)

[A Three Plus (Structured Obligation)]

Revised from CARE A3 (SO) [A Three (Structured

Obligation)] Removed from Credit Watch


*backed by an unconditional irrevocable corporate guarantee of Kajaria Ceramics Ltd to an extent of 51% of

sanctioned credit limits

Rating Rationale

The ratings were placed under ‘credit watch’ in view of the proposed disinvestment of equity shareholding of

Anjani Portland Cement Ltd (49% shareholding) in Vennar Ceramics Ltd (VCL). The divestment process has been

completed with transfer of 49% shareholding to a group company; Anjani Projects & Constructions Ltd, which does

not have any major impact on the credit profile of VCL. With the completion of the proposed disinvestment, the

ratings have been removed from ‘credit watch’.

The ratings factor in the credit enhancement in the form of an unconditional and irrevocable corporate guarantee

issued by Kajaria Ceramics Ltd (KCL) for 51% of the sanctioned bank facilities.

The revision in the ratings of VCL take into account increasing the scale of operation of the company with an

improvement in profit level and cash accrual during FY14 (refers to the period April 01 to March 31), completion of

the capacity expansion project undertaken and strong financial profile of the holding company; KCL. The ratings

continue to draw strength from the experienced promoter group with strong presence of KCL in the ceramic tile

business, marketing arrangement with KCL for offtake of entire production, usage of coal gas as fuel with firm fuel

supply arrangement (FSA) with Singareni Collieries Company Ltd (SCCL) and high capacity utilization. The ratings

are, however, constrained by the relatively short track record of operation of the ceramic tile business, volatility in

raw material prices, moderate capital structure, high reliance on working capital borrowings and industry

prospects closely linked to demand from the cyclical real estate industry. The ability of the company to further

expand the scale of operation, ensure adequate supply of its fuel requirement and manage the working capital

efficiently are the key rating sensitivities.

1 Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications.


286

Brief Rationale

The credit profile of KCL takes into consideration the robust financial performance during FY14 with strong cash

accruals reported and significant improvement in the capital structure backed by equity infusion in the company.

Furthermore, it also factors in the long established presence in the ceramic tile industry with strong market

presence, wide product portfolio, multilayer distribution network with widespread presence across the country,

increasing scale of operation and healthy profitability margins. However, the fragmented nature of industry with

prospects linked to the cyclical real estate industry and sensitivity of operating margins to raw materials and fuel

prices remain areas of concern for all the ceramic tile players.

Background

Vennar Ceramics Ltd (VCL) was incorporated as Vennar Ceramics Private Ltd on July 18, 1994 and subsequently the

name was changed to the current nomenclature on March 01, 1996. The company started its operation with Gas-

based power plant of capacity of 2.7 MW. However, in 2012, VCL undertook a business restructuring plan,

whereby 51% of the equity stake was acquired by Kajaria Ceramics Ltd (KCL) and the business of power generation

was discontinued w.e.f April 01, 2012. VCL recommenced business from July 01, 2012 by setting up a ceramic tile

manufacturing unit (installed capacity of 8,500 sq mts per day, enhanced from 6500 sq mts per day since

December 11, 2013) at its facilities located at Perikigudem Village, Krishna District, Andhra Pradesh (AP).

KCL holds 51% shareholding in VCL and the balance 49% is held by Anjani Projects & Constructions Ltd (APCL)

which was transferred from Anjani Portland Cement Ltd. [APL, rated CARE BB/CARE A4 (under credit watch)] in

March 2014.

During FY14 (refers to the period April 01 to March 31), VCL posted a PBILDT of Rs.10.88 crore (FY13: Rs.7.49 crore)

and a PAT (after deferred tax) of Rs.1.40 crore (FY13: Rs.1.06 crore) on a total operating income of Rs.64.09 crore

(FY13: Rs.35.16 crore).

As per the unaudited results for Q1FY15, VCL posted a PBILDT of Rs.3.52 crore (Q1FY14: Rs.2.46 crore) and a PAT

(after deferred tax) of Rs.0.81 crore (Q1FY14: Rs.0.30 crore) on a total operating income of Rs.16.92 crore (Q1FY14:

Rs.15.33 crore).

Analyst Contact

Name: Ms Puja Jalan

Tel: 040-40102030










287

Brief Rationale




factors.

288

Brief Rationale

October 07, 2014

CARE withdraws ratings assigned to bank facilities of

Dataserv Apac Limited

CARE, has withdrawn the rating(s) assigned to the bank facilities of Dataserv APAC limited, with immediate effect,

at the request of the company.

Analyst Contact

Name: Mr. Achin Nirwani

Tel: 011- 4533 3228













factors.


289

Brief Rationale

October 07, 2014

CARE withdraws the rating assigned to bank facilities of

Sri Sai Krishna Hydro Energies Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Sri Sai Krishna Hydro Energies

Private Limited with immediate effect, as company has fully repaid the amounts under the said

facility and there is no outstanding under the rated bank facility as on date.

Analyst Contact


Tel: 040 - 40102030










290

Brief Rationale

October 07, 2014


AT Hydro Private Limited

CARE has withdrawn the ratings assigned to bank facilities of AT Hydro Private Limited with

immediate effect, as company has fully repaid the amounts under the said facility and there is

no outstanding under the rated bank facility as on date.

Analyst Contact


Tel: 040 - 40102030










291

Brief Rationale

October 07, 2014


Cimaron Constructions Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Cimaron Constructions Private

Limited with immediate effect, as company has fully repaid the amounts under the said facility

and there is no outstanding under the rated bank facility as on date.

Analyst Contact


Tel: 040 - 40102030










292

Brief Rationale

October 07, 2014


Rayala Wind Power Company Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Rayala Wind Power Company



Analyst Contact


Tel: 040 - 40102030










293

Brief Rationale

October 07, 2014


Sai Spurthi Power Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Sai Spurthi Power Private Limited

with immediate effect, as company has fully repaid the amounts under the said facility and

there is no outstanding under the rated bank facility as on date.

Analyst Contact


Tel: 040 - 40102030










294

Brief Rationale

October 07, 2014


Rithwik Energy Generation Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Rithwik Energy Generation Private



Analyst Contact


Tel: 040 - 40102030










295

Brief Rationale

October 07, 2014


Him Kailash Hydro Power Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Him Kailash Hydro Power Private



Analyst Contact


Tel: 040 - 40102030










296

Brief Rationale

October 07, 2014


Hemavathy Power & Light Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Hemavathy Power & Light Private



Analyst Contact


Tel: 040 - 40102030










297

Brief Rationale

October 07, 2014


Fortune Five Hydel Projects Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Fortune Five Hydel Projects



Analyst Contact


Tel: 040 - 40102030










298

Brief Rationale

October 07, 2014


Anubhav Hydel Power Private Limited

CARE has withdrawn the ratings assigned to bank facilities of Anubhav Hydel Power Private



Analyst Contact


Tel: 040 - 40102030










299

Brief Rationale

October 07, 2014


AMR Power Private Limited

CARE has withdrawn the ratings assigned to bank facilities of AMR Power Private Limited with

immediate effect, as company has fully repaid the amounts under the said facility and there is

no outstanding under the rated bank facility as on date.

Analyst Contact


Tel: 040 - 40102030










300

Brief Rationale

October 07, 2014

CARE withdraws the rating assigned to the bank facility of

MBE Mineral Technologies Pte Ltd. CARE has withdrawn the rating assigned to the bank facility of MBE Mineral Technologies Pte Ltd. with immediate

effect, as the company has fully repaid the amounts under the said facility and there is no amount outstanding

under the facility as on date.

Analyst Contact

Name: Mamta Muklania Tel: 033-4018 1600 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.











factors.


301

Brief Rationale

October 07, 2014

CARE withdraws ratings assigned to various facilities/instruments of Future Value Retail

Limited consequent upon their transfer to Future Retail Limited

CARE has withdrawn the ratings assigned to the Bank facilities of Future Value Retail Limited with immediate effect

consequent to either the transfer of facilities to Future Retail Limited or repayment of the facilities.

Further, CARE has also withdrawn the rating assigned to the Non-Convertible Debenture and Commercial Paper

(Carved out) issue of Future Value Retail Limited with immediate effect consequent to its transfer to Future Retail

Limited.

The transfer of facilities was due to merger of Future Value Retail Limited with Future Retail Limited.

Analyst Contact

Name: Rashmi Shah Tel : 022-6754 3429 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.


Disclaimer: Shri. V.K. Chopra, Rating Committee Member is a Non-Executive Director on the board of Future Retail Ltd. (parent

company of erstwhile FVRL) and hence, the note is not sent to him. To comply with the regulations, the Member is required not

to participate in the rating process and the Rating Committee Meeting and press disclosure about the same is to be made by

the CRA.








302

Brief Rationale

October 07, 2014

CARE withdraws rating assigned to the bank facilities of

Vanser Metallics CARE, has withdrawn the rating(s) assigned to the bank facility of Vanser Metallics, with immediate effect, at the

request of the firm and on account of the outstanding amounts against the bank facilities availed by the firm,

falling below the threshold for external rating.

Analyst Contact Name: Achin Nirwani Tel: 011- 45333228 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at



Disclaimer






facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed

by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of


other relevant factors.


303

Brief Rationale

October 07, 2014


Navuthan Educational Trust

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Navuthan Educational

Trust. The rating(s) have been suspended as the trust has not furnished the information required by CARE for

monitoring of the rating(s).

Analyst Contact

Name: Achin Nirwani

Tel: 011- 45333228




Disclaimer










factors.


304

Brief Rationale

October 07, 2014


Eastern Electrolyser Limited

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Eastern Electrolyser

Limited. The ratings have been suspended as the company has not furnished the information required by CARE for

monitoring of the rating.

Analyst Contact


Tel: 011- 45333228




Disclaimer:










factors.


305

Brief Rationale

October 07, 2014

CARE suspends rating assigned to the bank facilities of

Associates Nonwovens CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Associates Nonwovens.

The ratings have been suspended as the firm has not furnished the information required by CARE for monitoring of

the ratings.




Disclaimer











306

Brief Rationale

October 07, 2014


Care Corupack Limited

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Care Corupack Limited.

The ratings have been suspended, as the entity has not furnished the information required by CARE for monitoring

of the rating.

Analyst Contact

Name: Mohit Agrawal

Tel: 079-40265612













factors.


307

Brief Rationale

October 07, 2014

CARE suspends the rating assigned to bank facilities of

Pawan Autowheels Private Limited

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Pawan

Autowheels Private Limited. The rating has been suspended as the company has not furnished

the information required by CARE for monitoring of the rating.

Analyst Contact


Tel: 011- 45333228













factors.


308

Brief Rationale

October 07, 2014

CARE suspend rating assigned to bank facilities of

Kingswood Infrastructure Private Limited

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of

Kingswood Infrastructure Private Limited. The rating has been suspended as the company has

not furnished the information required by CARE for monitoring of the rating.

Analyst Contact


Tel: 011- 45333228













factors.


309

Brief Rationale

October 07, 2014


Centur Gems

CARE has suspended, with immediate effect, the ratings assigned to the long/short-term bank facilities of Centur

Gems. The ratings have been suspended as the company has not furnished the information required by CARE for

monitoring of the rating.

Analyst Contact

Name: Nitesh Dhoot












310

Brief Rationale

October 06, 2014

CARE assigns ‘in-principle CARE AA-(SO)’ rating to proposed NCD issue of

Relationship Properties Private Limited Rating

Instrument Amount

(Rs. crore) Ratings

1 Remarks

Long term- Proposed Non-

Convertible Debenture ^ 225

In-principle CARE AA- (SO)

[Double AA Minus (Structured Obligation)] Assigned

^to be backed by an unconditional and irrevocable revolving Debt Service Reserve Account (DSRA) guarantee from

Shapoorji Pallonji & Co. Pvt. Ltd (SPCPL) for maintenance of debt service reserve equivalent to an amount payable

towards one quarter interest and one quarter principal for immediately succeeding quarter throughout the tenure

of the facility.

The ‘in-principle’ rating will be confirmed after the execution and verification of the transaction documents to the

satisfaction of CARE.

Rating Rationale

The rating assigned to the proposed long-tem instrument of Relationship Properties Pvt Ltd (RPPL) principally

derives comfort from the credit enhancement in the form of an unconditional and irrevocable revolving

commitment from SPCPL (rated CARE AA+) for maintenance of debt service reserve equivalent to an amount

payable towards one quarter interest and one quarter principal for immediately succeeding quarter throughout

the tenure of the facility.

The rating further derives strength from the project being developed and marketed by SPCPL and favourable

location of the project demonstrated through initial interest from the buyers in a short span since the time of

launch.

The rating is, however, tempered by nascent stage of development, high reliance on customer advances to fund

the project and cyclical nature of the real estate industry.

The rating remains sensitive to any variation in credit profile of the guarantor i e SPCPL and the ability of RPPL to

complete the project within time and costs envisaged and maintain sales momentum at estimated realisation

rates.

Rating Rationale of SPCPL

The rating of SPCPL principally derives strength from resourcefulness of the Shapoorji Pallonji group (SP group) and

its substantive financial strength mainly on account of being the largest private shareholder in Tata Sons Ltd (TSL,

holding company of the Tata group) with 18.37% stake. Additionally, strong financial flexibility of SPCPL with

considerably high level of unlocked value of its investments in diverse fields & land parcels further enhance credit

profile of the company.

The rating is also supported by the company’s proven track record in the construction, infrastructure & real estate

space, its well-diversified order book, healthy revenue visibility over the medium term and adequate liquidity.



311

Brief Rationale

The rating is, however, constrained by subdued profitability in its core business segment, weakening standalone

financial profile with leveraged capital structure, rise in the collection period and increasing financial support

extended to the group companies.

Ability of SPCPL to improve its operational profitability, manage working capital efficiently and unlock the optimum

value from its various assets continues to be the key rating sensitivities.

Background

RPPL, incorporated in 2008, is a wholly owned subsidiary of SPCPL. RPPL has land development rights in Binnypet,

Bengaluru for the area of approximately 47 acres to develop township comprising Apartments, Club House, and

Recreational Amenities for total saleable area of around 47.50 lacs square feet (lsf). RPPL has entered into a Joint

Development Agreement (JDA) with land owners i.e. ETA group through ETA Star Infopark, ETA Karnataka Estates

Ltd. and ETA Constructions (India) Ltd. SPCPL has been appointed as a turn-key contractor for the project which is

proposed to be developed under the name ‘Park West’ in 3 phases.

About the DSRA Guarantor-SPCPL

SPCPL, the flagship company of the SP group, is one of the leading construction companies of India. SPCPL is

equally held by Mr Shapoor P Mistry and Mr Cyrus P Mistry through the group’s investment companies.

During its more than 148 years of operations, SP group has built diverse civil and engineering structures like

factories, nuclear waste handling establishments, stadiums and auditoriums, airports, hospitals, hotels, housing

complexes, water treatment plants, roads and power plants around the world.

Analyst Contact


Tel: 022-6144 3505









amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the



factors.


312

Brief Rationale

October 06, 2014

CARE assigns ‘CARE B+’ and ‘CARE A4’ ratings to the bank facilities of

Stanlubes & Specialities (India) Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



Short-term Bank Facilities 1 CARE A4

(A Four) Assigned


Rating Rationale

The ratings assigned to the bank facilities of Stanlubes & Specialities (India) Private Limited (SSPL) is constrained by

the small scale of operations with low profitability margins, weak debt protection metrics, raw material and

foreign exchange price fluctuation risk. The ratings are further constrained by SSPL’s presence in a highly

competitive & fragmented industry.

The above constraints far outweigh the strength derived from long & established track record of the company, the

experience of the management and its reputed client base.

The ability of SSPL to improve its overall scale of operations with the financial risk profile and efficiently manage its

working capital cycle are the key rating sensitivities.

Background

Incorporated in 1992, Stanlubes & Specialities (India) Private Limited (SSPL), is engaged in the business of

manufacturing of industrial greases & oils. The company’s product range include multiple purpose grease, wheel

bearing grease, chassis grease, hydraulic oil, machine oil, tool oils and others. The company earns majority of the

revenue from sale of grease and from the domestic market and major raw material i e base oil is procured from

both, the international & domestic markets. SSPL majorly undertakes contract manufacturing of greases for HPCL,

IOCL (CARE AAA) and other large oil & lubricant manufacturers. The company’s plant is located in Navi Mumbai

and it has its registered office in Mumbai.

As per FY14 results (refers to the period April 01 to March 31), SSPL reported a total operating income of Rs.25.22

crore (down by 21.29% vis-a-vis FY12 or FY13) and PAT of Rs.0.12 crore (down by 49.07% vis-a-vis FY13). During

FY14, SSPL achieved total revenue of Rs.9.20 crore till September 17, 2014.

Analyst Contact

Name: Mr. Nitesh Dhoot

Tel: 022-6754 3422






313

Brief Rationale










factors.

314

Brief Rationale

October 06, 2014

CARE assigns ‘CARE A-’ AND ‘CARE A2+’ ratings to bank facilities of

Venky’s (India) Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 251.26 CARE A-

(Single A Minus) Assigned


CARE A-/CARE A2+

(Single A Minus / A Two

Plus)

Assigned


(A Two Plus) Assigned


Rating Rationale

The ratings assigned to Venky’s (India) Limited (VIL) derive strength from the highly experienced promoters, VH

Group’s established brand name and strong market share in the field of poultry and poultry products, its status as

the largest fully integrated poultry player in India along with its strong market share of pure line breed and wide

geographic presence. Furthermore, the ratings take into account the presence of the company in value added

poultry products, quick service restaurant chains for processed chickens along with healthy growth in operating

income and comfortable capital structure.

The ratings assigned are, however, constrained on account of susceptibility of the margins to movement in the

feed prices along with lack of control on poultry prices, significant exposure towards the group companies engaged

in non-core activities. The ratings also take into account the cyclical nature of the poultry industry and risk

associated with outbreaks of bird flu and other diseases.

The company’s ability to maintain consistent growth in income and improvement in its profitability margins along

with efficient management of the working capital cycle with reduced exposure towards group companies would be


While assigning ratings, CARE has considered the combined performance of four group companies, namely, Venky’s

India Limited (VIL), Venkateshwara Hatcheries Private Limted (VHPL ; rated ‘CARE A-/ CARE A2+’), Venco Research

and Breeding Farm Private Limited (Venco) and Venkateshwara Research and Breeding Farm Private Limited (VRB).



315

Brief Rationale

With the operations of the above four entities, the entire value chain of the poultry division is covered (from

research of pure line to sale of hatching eggs, grown up commercial broiler birds and processed chicken).

Background

VIL commenced its operation in the year 1976, in order to support groups operation in the poultry segment by

producing day old broiler and layer chicks. Apart from poultry and related business, VIL has diversified its activity

to various segments such as bio-security products, feed supplements, solvent oil extraction, processed chicken,

animal health products (AHP), nutritional health care products (for humans), and Specific Pathogen Free Eggs (SPF

eggs) which is used for the production of vaccines. It is the only commercial producer of SPF Chicken embryos in

India. VIL is the public listed company of the group and is a subsidiary of VHPL which holds 50.06% stake in VIL. It

operates around 11 retail outlets for processed chicken in the form of quick service restaurants. VIL has over 24

units across India. VIL is majorly dealing in the broiler birds segment. VIL is concentrating primarily in the northern

part of India.

The VH Group was established in the year 1971 by founder chairman Late Padmashree Dr. B.V Rao who is also

referred as “the father of the Indian poultry industry”. VH group is the largest integrated poultry player in India

covering entire spectrum of poultry segment from pure line breeding to processed chicken. Over the years the

group has created a strong brand of ‘Venky’s’ and pan India presence in both the organized and unorganized

poultry segment. The activities of the group is diversified across egg processing, broiler and layer breeding, Specific

Pathogen Free (SPF) eggs, chicken, genetic research and Poultry diseases diagnostic, Poultry vaccines and feed

supplements, vaccine production, bio-security products, poultry feed & equipments, nutritional health products,

soya de-oiled cakes. The group also has operations into hatching equipments and feeding equipment

manufacturing.

During FY14 (refers to the period from April 1 to March 31 - Unaudited), the group achieved a combined total

operating income of Rs.4508.61 crore and a Profit After Tax (PAT) of Rs.181.05 crore against a PAT of Rs.115.42

crore and combined total operating income of Rs.4049.24 crore in FY13 (Unaudited). VIL’s standalone total

operating income during FY14 (Audited) stood at Rs.1752.85 crore and a PAT of Rs.34.04 crore.

Analyst Contact

Name: Leena Marne

Tel: 020 4000 9019







http://www.venkys.com/vaccines-and-feeds/vaccines/disease/

http://www.venkys.com/vaccines-and-feeds/vaccines/

http://www.venkys.com/vaccines-and-feeds/poultry-feeds/


316

Brief Rationale




317

Brief Rationale

October 06, 2014

CARE assigns ‘CARE A-’ and ‘CARE A2+’ ratings to bank facilities of

Venkateshwara Hactheries Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 337.77 CARE A-

(Single A Minus) Assigned


CARE A-/CARE A2+

(Single A Minus / A Two

Plus)

Assigned


(A Two Plus) Assigned


Rating Rationale

The ratings assigned to Venkateshwara Hatcheries Private Limited (VHPL) derive strength from the highly

experienced promoters, VH group’s established brand name and strong market share in the field of poultry and

poultry products, its status as the largest fully integrated poultry player in India along with its strong market share

of pure line breed and wide geographic presence. Furthermore, the ratings take into account the presence of the

company in value added poultry products, quick service restaurant chains for processed chickens along with

healthy growth in operating income and comfortable capital structure.

The ratings assigned are, however, constrained on account of susceptibility of the margins to movement in the

feed prices along with lack of control on poultry prices, significant exposure towards group companies engaged in

non-core activities. The ratings also take into account the cyclical nature of poultry industry and risk associated to

any outbreaks of bird flu and other diseases.

The company’s ability to maintain consistent growth in income and improvement in its profitability margins along

with efficient management of the working capital cycle with reduced exposure towards group companies would be


While assigning ratings, CARE has considered the combined performance of four group companies, namely,

Venkateshwara Hatcheries Private Limted (VHPL), Venky’s India Limited (VIL; rated ‘CARE A-/ CARE A2+’), Venco

Research and Breeding Farm Private Limited (Venco) and Venkateshwara Research and Breeding Farm Private

Limited (VRB). With the operations of the above four entities, the entire value chain of the poultry division is

covered (from research of pure line to sale of hatching eggs, grown up commercial broiler birds and processed

chicken).



318

Brief Rationale

Background

VHPL is part of the Pune-based VH group. The group was established in 1971 by founder chairman, the late

Padmashree Dr BV Rao who is also referred as “the father of the Indian poultry industry”. The VH group is the

largest integrated poultry player in India covering entire spectrum of poultry segment from pure line breeding to

processed chicken. Over the years, the group has created a strong brand of ‘Venky’s’ and pan India presence in

both the organized and unorganized poultry segments. The activities of the group are diversified across egg

processing, broiler and layer breeding, Specific Pathogen Free (SPF) eggs, chicken, genetic research and poultry

diseases diagnostic, poultry vaccines and feed supplements, vaccine production, bio-security products, poultry

feed & equipments, nutritional health products, soya de-oiled cakes, etc. The group also has presence in hatching

equipment and feed supply equipment manufacturing.

VHPL is the flagship company of the VH group and commenced its operation in 1971 in order to support groups

operation in poultry segment by producing day old broiler and layer chicks. The operations of the company are

divided in three segments including poultry & poultry products, egg powder products and vaccines. It also has a

Poultry Diagnostic Center (In-house R&D unit). The company manufactures value added products such as vaccines,

poultry feed, etc. The company has its operations spread across variuos states of India having a pan India

presence.

VHPL has five subsidiaries including: Venky’s India Limited (VIL), Eastern Hatcheries Private Limited, Bala Industries

& Entertainment Private Limited, Venky’s London Limited and Venky’s Overseas Limited and two step down

subsidiaries: Bala Entertainment USA, Inc and Blackburn Rovers Football & Athletic PLC.

During FY14 (unaudited; refers to the period April 01 to March 31), the group achieved a combined total operating

income of Rs.4,508.61 crore and a Profit After Tax (PAT) of Rs.181.05 crore against a PAT of Rs.115.42 crore and

combined total operating income of Rs.4,049.24 crore in FY13 (unaudited). VHPL’s standalone total operating

income during FY14 (provisional) stood at Rs.3,045.34 crore and a PAT of Rs.83.53 crore.

Analyst Contact

Name: Leena Marne

Tel: 020 4000 9019









amount and type of bank facilities/instruments



http://www.venkys.com/vaccines-and-feeds/vaccines/




319

Brief Rationale

October 06, 2014

CARE reaffirms the rating assigned to the long term debt of

Religare Finvest Limited

Rating

Instrument Amount

(Rs. crore) Ratings

1 Remark

Long term Debt 1400 CARE AA-

[Double A Minus] Re-affirmed

Total 1400

Rating Rationale

The rating continues to factor in the support from the parent company Religare Enterprises Ltd (REL) which has

demonstrated constant support in the past through periodic equity infusion. The rating continues to draw strength

from experienced management team, comfortable capitalization level and liquidity profile.

These rating strengths are however partially offset by moderate growth in overall loan portfolio albeit

disbursements in SME book increased in FY14 (refers to period from April 1 to March 31), deterioration in the asset

quality, modest profitability parameters and amid challenging and competitive economic environment.

Profitability, liquidity profile and asset quality are the key rating sensitivities.

Background

Religare Finvest Ltd. (RFL) is a subsidiary of Religare Enterprises Ltd. (REL) which is promoted by Mr. Malvinder

Singh and Mr. Shivinder Singh. Mr. Malvinder Singh is the Group Chairman of Fortis Healthcare, a leading

healthcare player in India and the Asia Pacific. Mr. Shivinder Mohan Singh is the Managing Director of Fortis

Healthcare Limited (rated ‘CARE A+/ CARE A1+’) and Escorts Heart Institute & Research Centre (rated CARE A1+).

RFL was originally incorporated in 1995 as an investment company named ‘Skylark Securities Pvt. Ltd.’, which

changed its name to ‘Fortis Finvest Pvt. Ltd. in 2004 and later to ‘Religare Finvest Ltd.’ in 2006 with

commencement of operations. RFL is a Systemically Important Non-Deposit Taking NBFC registered with the

Reserve Bank of India (RBI) and engaged in the business of lending to Small & Medium Enterprises (SMEs) -

Secured term loan and Unsecured working capital Loans and Loans against marketable securities.

RFL reported Profit After Tax (PAT) of Rs.217 crore on a total income of Rs.2,014 crore during FY14 (refers to the

period April 01 to March 31) as compared with a PAT of Rs.185 crore on a total income of Rs.2,262 crore during

FY13. During Q1FY15, RFL reported a total income of Rs.499 crore and PAT of Rs.56 crore. CAR stood at 19.17% as

on March 31, 2014 (19.84% as on March 31, 2013).



320

Brief Rationale

Analyst Contact Name: Ankita Sehgal Tel: 011 45333226 Mobile: +91 9958700336 Email: [email protected]



Note: Mr V. K. Chopra, who is an Independent Director on the Board of Religare Asset Management Company (part of Religare group), is one of CARE’s Rating Committee Members. To comply with the regulations, the member has not participated in the rating process and its rating committee meeting.



321

Brief Rationale

October 06, 2014

CARE reaffirms the ratings to the bank facilities of

Machine Tools (India) Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 5 CARE BBB-



CARE BBB- (Triple B

Minus)/CARE A3 (A

Three)

Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Machine Tools (India) Limited (MTL) continues to derive strength from

its established track record of operations resulting in healthy relationship with the principals and customers,

experienced management and diversified end-user industries for MTL’s products. The ratings further continue to

factor in the moderate financial risk profile marked by moderate profitability, low leverage and comfortable debt

coverage indicators.

The ratings however, continues to be constrained by MTL’s small scale of operations, vulnerability of profit margins

to the proportion of commission income in total revenue, elongated operating cycle and foreign exchange

fluctuation risk.

The ability of MTL to improve its overall scale of operations and efficient management of the working capital cycle

are the key rating sensitivities.

Background

Machine Tools (India) Limited (MTL) was incorporated in the year 1928 and is engaged in the trading of various

types of machine tools (viz. used for metal cutting, metal forming, metrology inspection & quality control,

welding& presses) and providing after sales services (wherein it provides sales servicing for maintenance and

repairing) for the machinery sold. MTL has representation rights for around 170 manufacturers from across the

world.

The company’s income consists of commission income earned on the sale of machine tools (constituting 47.61% of

the total income in FY14 [refers to the period April 1 to March 31] as compared to 46.69% of the total income in

FY13) to various companies in India, direct purchase from principals & sales of machine tools in the domestic

market (constituting 45.28% of the total income in FY14 as compared to 46.58% of total income in FY13) and

service income for after sale services (constituting 5.34% of total income in FY14 as compared to 5.89% of total

income in FY13). Currently MTL has more than 100 signed annual maintenance contracts with various reputed

domestic organizations. In addition to above, MTL also operates two windmills of 225 KW, the income from which

was around Rs.0.28 crore during FY14 (vis-à-vis Rs.0.26 crore during FY13).

During FY14 (provisional), MTL has reported a total operating income of Rs.47.72 crore (growth of 6.49% vis-a-vis

FY13) and PAT of Rs.2.06 crore (growth of 27.94% vis-a-vis FY13).



322

Brief Rationale

Analyst Contact

Name: Mr. Nitesh Dhoot

Tel: 022-6754 3422













factors.

323

Brief Rationale

October 06, 2014


Taksh Infrastructure Llp

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 9.00 CARE B Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of Taksh Infrastructure LLP (TILLP) continues to remain constrained by

high project saleability risk in light of low booking status and current subdued scenario of the highly fragmented

real estate sector.

The rating continues to derive strength from the experienced promoters and well-established track record of

operations of Taksh’s group in the real estate business. The rating also factors in the moderate project execution

risk due to reduced dependence on external funding.

TILLP’s ability to successfully complete its on-going real estate project within the envisaged cost and time

parameters along with the timely receipt of proceeds from the customers remain the key rating sensitivities

Background TILLP is a Limited Liability Partnership (LLP) firm incorporated on January 22, 2013 in Vadodara. The firm was

originally constituted as a private limited company on February 13, 2007 and was later converted into a LLP. TILLP

is promoted by Taksh Group of Vadodara, founded by Mr Girish Shah, Mr Girish Chandra Patel, Mr Samir Amin and

Mr Chintan Shah. The firm is engaged in the real estate development business and is currently developing a

commercial property named ‘Taksh Galaxy” comprising of showrooms/shops and offices with saleable built-up

area of 163,945 sq.ft. on a plot of land admeasuring 65,724 sq.ft. Taksh Galaxy proposes to comprise basement,

ground floor and four floors. Total 111 units including shops (51) and offices (60) are planned to be developed in

the said project.

Till September 15, 2014, 52% cost of the project i e Rs.15.79 crore is incurred.

Analyst Contact Name: Mohit Agrawal Tel: 079-40265612 Mobile: +91 85111 90083 Email: [email protected]




324

Brief Rationale


Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications. Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall

the concerned bank facilities or to buy, sell or hold any security. The rating assigned by CARE is based on the capital deployed

by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of

capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors.







325

Brief Rationale

October 06, 2014


Karnani Solvex Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



Long term/ Short term Bank Facilities 30 CARE BB/ CARE A4 (Double B/ A Four)

Reaffirmed


Rating Rationale

For arriving at the ratings of Karnani Solvex Private Limited (KSPL), CARE has considered the combined financial

and business profile of two Karnani group companies, namely KSPL and Tripple Star Agri Private Limited (TSAPL;

rated CARE BB), as both these companies have similar business profiles with operational and business linkages.

The ratings continue to take into account KSPL’s financial risk profile marked by thin profitability, moderate

solvency, weak debt coverage indicators and its moderate liquidity position. The ratings are further constrained on

account of vulnerability of its margins to volatility in the prices of raw material coupled with its presence in a highly

competitive and fragmented industry with threat from cheap imports.

The ratings, however, derive strength from the stabilized operations of the company with the growing scale of

operations, favorable demand outlook and strategic location of manufacturing units with close proximity to raw

material sources.

Ability of KSPL to increase its scale of operations while improving profitability and solvency position along with

efficient working capital management will be the key rating sensitivities.

Background

Jaipur-based (Rajasthan) KSPL was incorporated in 2007 by Mr Sanjay Karnani and Mr Narayan Karnani for the

manufacturing and sale of crude oil derived through processing of mustard oil cake, which is a by- product derived

from the processing of mustard oil from mustard seeds. The company also sells De-oiled cake (DOC), a by-product

produced through further processing of mustard oil cake. KSPL started its commercial production in September,

2009 and subsequently, in June, 2012 the company commissioned its refinery unit to refine the crude oil

manufactured from its solvent extraction plant. The solvent extraction plant and refinery of the company are

located on the outskirts of Jaipur and have solvent extraction capacity of around 450 Tonnes per day (TPD) and

refining capacity of 50 TPD. The company sells the edible refined oil in the domestic market while DOC is exported

directly to buying houses located in Singapore and South Korea and also sells the same to the domestic companies

involved in the export of DOC.



326

Brief Rationale

Karnani family has also promoted TSAPL and Pitambar Solvex Private Limited (PSPL). KSPL meets a part of its

mustard cake requirement from TSAPL.

As per the Audited results for FY14 (refers to the period April 1 to March 31), KSPL reported a total operating

income of Rs.345.21 crore (FY13: Rs.272.38 crore) and PAT of Rs.1.57 crore (FY13: Rs.1.44 crore).

Analyst Contact Name: Harsh Raj Sankhla Tel: 0141-4020213/214 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.









327

Brief Rationale

October 06, 2014

CARE reaffirms credit opinions on assignee payout and second loss facility in the direct

assignment of new and used asset loan receivables originated by

Shriram Transport Finance Company Ltd. STFCL Direct Assignment Mar 12 - I Ratings

Instrument/ Obligation Principal Outstanding

(Rs. crore) Ratings

1 Remarks

Assignee Payouts 76.21* Equivalent to CARE AAA (SO)

[CARE Triple A (Structured Obligation)]

Reaffirmed

Second Loss Facility 22.76 Equivalent to CARE BBB (SO)

[CARE Triple B (Structured Obligation)]

Reaffirmed

* After July 14 payout

Enhancement:

Description Credit Collateral after

Reset (Rs. Crore) Ratings Remarks

Credit Collateral

Second Loss Facility (SL)

22.76 CARE BBB (SO) Reduced from

Rs 43.80 Cr

First Loss Facility (FL)

11.11 Unrated Reduced from

Rs 14.60 Cr

Rating Rationale

CARE Reaffirms a credit opinion equivalent to CARE AAA (SO) rating to the assignee payout for the Securitisation

Transaction of STFCL Direct Assignment March ’12 I. CARE also reaffirms a credit opinion on second loss facility

equivalent to CARE BBB (SO). The pool has adequate level of credit enhancement after the release of part of the

credit enhancement to commensurate with the credit opinions on assignee payout and second loss facility for the

Securitisation Transaction of STFCL Direct Assignment Mar ’12- I.

The pool has amortized by 84.34%. There has been no utilisation of cash collateral. The pool has exhibited good

performance. The cumulative collection efficiency of the pool is at around 98%. The delinquency for 90+ dpd has

reached the peak of 6.26% and at present it is at 3.53%.

Background

STFCL is the flagship company of the Chennai-based Shriram Group and was founded by Mr R Thyagarajan, Mr T.

Jayaraman and Mr A. V. S. Raja. It is classified as deposit taking Asset Financing NBFC. The company was

incorporated in 1979, with an objective to provide hire purchase and lease finance for the medium and heavy

commercial vehicles to individual truck operators. It is the largest asset financing NBFC in India concentrated

mainly in pre-owned vehicle financing business. STFCL has two wholly owned subsidiaries, namely, Shriram

Equipment Finance Company Limited and Shriram Automall India Ltd. STFCL has a pan India presence with a

network of 654 branches and 629 rural centres at the end of March 2014. The total employee strength as on

March 31, 2014 stands at 18,122 which include 11,209 field officers.

On a consolidated basis, total AUM stood at Rs.56,519 crore as on March 31, 2014 as compared to Rs.52,718 crore

as on March 31, 2013. During FY14 (refers to the period April 01 to March 31) STFCL earned PAT of Rs.1,358 crore



328

Brief Rationale

(Rs.1,463 crore in FY13) on total income of Rs.8,480 crore (Rs.7,016 crore in FY13). As on March 31, 2014, Gross

NPA and Net NPA ratio stood at 3.75% and 0.83%, respectively with a provision coverage ratio of 78.53%. STFCL

reported CAR of 23.37% (on a standalone basis) as on March 31, 2014.

Note:- Mr. P. P. Pattanayak, who is a Director on the board of Shriram City Union Finance Ltd. (which is part of the

Shriram Group), is a member of the Rating Committee in CARE. Mr. Pattanayak did not participate in the rating

process or in the meeting of the Rating Committee when the rating of STFCL was discussed.

Analyst Contact

Name: Ramadasu Bandaru

Tel: 022-67543402













factors.

329

Brief Rationale

October 06, 2014


Shiv Shipping Services

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


CARE BB- (Double B Minus )

Revised from CARE B+ (Single B Plus)

Short-term Bank Facilities 3

CARE A4 (A Four)

Assigned


Rating Rationale

The revision in the long term rating assigned to the bank facilities of Shiv Shipping Services (SSS) takes into account

healthy growth in its turnover & gross cash accruals and improvement in debt coverage indicators during FY14

(refers to the period April 1 to March 31).

The ratings remain constrained by its moderate capital structure & liquidity position, its constitution as a

partnership firm and presence in a highly fragmented and competitive logistic industry.

The ratings, however, continue to derive strength from the wide experience of the promoters and long track

record of operations with well-established set up.

The ability of SSS to increase its scale of operations, improve profitability and capital structure by efficient

management of its working capital requirements are the key rating sensitivities.

Background

SSS was formed as a partnership firm in September 1998 by Mr Dharmesh Thakkar and Mr V Anantharaman with

equal profit/loss sharing ratio. SSS provides port-related services, transportation and warehousing facilities to its

clients who export or import goods mainly through the Kandla port, Gujarat. SSS also has a windmill in Jaisalmer

(Rajasthan) with a power generation capacity of 600 kilowatt.

SSS also has associate concerns namely Omkar Enterprise and Shiv Shipping Logistics.

During FY14, SSS reported a PAT of Rs.1.70 crore on a total operating income (TOI) of Rs.104.14 crore as against a

PAT of Rs.1.51 crore on a TOI of Rs.74.27 crore in FY13.

Analyst Contact Name: Mohit Agrawal Tel: 079-40265612 Mobile: +91 85111 90083 Email: [email protected]




330

Brief Rationale












331

Brief Rationale

October 06, 2014

CARE revises and reaffirms rating assigned to bank facilities of

Gajra Gears Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


20.96 CARE B+

(Single B Plus) Revised from CARE B-

(Single B Minus)


Reaffirmed


Rating Rationale

The revision in the long-term rating of Gajra Gears Private Limited (GGPL) is on account of an improvement in its

capital structure as on March 31, 2014.

The ratings, however, continue to be constrained on account of high working capital intensity associated with its

operations and stretched debt coverage indicators apart from its presence in a highly competitive and cyclical auto

component industry.

The ratings continue to derive strength from the vast experience of the promoters in the auto component industry

and its long standing relationship with key clientele.

The ability of GGPL to increase its scale of operations, improve its profitability and capital structure while

efficiently managing working capital would be the key rating sensitivities.

Background

GGPL, part of Gajra Group, was established in 1962 at Dewas (Madhya Pradesh) for undertaking the business of

manufacturing and selling of transmission gears. GGPL has an installed capacity for manufacturing 4210 Metric

Tonnes Per Annum (MTPA) of different types of gears through its CNC machines. The gears manufactured by GGPL

primarily find use in tractors and Commercial Vehicles (mainly LCVs). Apart from catering to exports, GGPL also

meets the demand of OEMs and the replacement market in India.

The Gajra Group (comprising of GGPL, Gajra Differential Gears Limited (GDGL), and Elve Corporation, a partnership

firm) was established in 1950 with the formation of Elve Corporation primarily for trading in diesel engines and

spares. Later on in 1962, it moved on to manufacturing automobile transmission gears by setting up GGPL. The

group further added to its capabilities by setting up GDGL in 1991.

Based on the audited results for FY14 (refers to the period April 1 to March 31), GGPL has reported a

total operating income of Rs.148.07 crore with a net profit of Rs.0.85 crore as against a total operating

income of Rs.140.34 crore with a net profit of Rs.2.95 crore in FY13. Furthermore, as per the provisional



332

Brief Rationale

results for Q1FY15, GGPL has achieved a total operating income of Rs.36.55 crore with a PAT of Rs. 0.29

crore.

Analyst Contact













333

Brief Rationale

October 06, 2014

CARE revises the rating assigned to bank facilities of

Tripple Star Agri Private Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks


(Double B) Revised from CARE BB-

(Double B Minus)


Rating Rationale

For arriving at the rating of Tripple Star Agri Private Limited (TSAPL), CARE has considered the combined financial

and business profile of two Karnani group companies, namely TSAPL and Karnani Solvex Private Limited (KSPL;

rated CARE BB/CARE A4), as both these companies have similar business profiles with operational and business

linkages.

The revision in the rating of TSAPL takes into account improvement in its scale of operations due to an increase in

sales volumes of its products and improvement in the solvency position and debt coverage indicators due to a

decline in debt. Furthermore, the rating derives strength from the experienced management with group support

and its proximity to sources of raw material.

However, the rating continues to remain constrained on account of its financial risk profile marked by thin

profitability margins and moderate liquidity position. The rating is further constrained on account of TSAPL’s

presence in a highly fragmented and competitive industry coupled with vulnerability of profitability margins to

volatile agro commodity prices.

Ability of TSAPL to increase its scale of operations while improving profitability and solvency position along with

efficient working capital management will be the key rating sensitivities.

Background

TSAPL was incorporated in 2011 by Jaipur-based ‘Karnani family’ with a purpose to acquire a running plant for the

extraction of crude edible oil and mustard cakes from mustard seeds. Initially, the plant had an installed capacity of

10,500 Metric Tonnes Per Annum (MTPA). Later in April, 2012, TSAPL had undertaken a project to expand its

existing capacity to 60,000 MTPA. The project was completed in January, 2013 with a total cost of Rs.6.90 crore

financed through share capital of Rs.1.42 crore, term loan of Rs.5 crore and the remaining through unsecured

loans.

‘Karnani Family’ has also promoted other companies namely KSPL and Pitambar Solvex Private Limited (PSPL).

Entire production of mustard cake of TSAPL is sold to KSPL and mustard oil is sold out through agents in Uttar

Pradesh (U.P.), Bihar, Assam, West Bengal and Rajasthan.



334

Brief Rationale

As per the Audited results for FY14 (refers to the period April 1 to March 31), TSAPL reported a total operating


Analyst Contact Name: Harsh Raj Sankhla Tel: 0141-4020213/214 Email: [email protected]










335

Brief Rationale

October 06, 2014

CARE places the rating assigned to Bank Facilities & NCD of

Sarda Energy & Minerals Limited On Credit Watch Ratings

Instruments Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 327.64 CARE A+

(Single A Plus) Placed on Credit Watch


(A One Plus) Placed on Credit Watch


Non Convertible debentures 125.00 CARE A+

(Single A Plus) Placed on Credit Watch

Rating Rationale

CARE has placed ratings of Sarda Energy & Minerals Ltd. (SEML) on “credit watch” in view of the order dated

September 24, 2014, of the Hon’ble Supreme Court on de-allocation of coal mines allotted to the company. SEML

has been operating a coal block in Chhattisgarh since FY10 with license to extract 1.20 mmt annually. CARE is

monitoring the developments in this regard and will take a view on the ratings once the exact implications of the

above development on the credit profile of the company are clear.

Background

Since its incorporation as Raipur Wires & Steel Limited in 1973, Sarda Energy & Minerals Ltd (SEML) has converted

itself from a standalone steel melting shop to an integrated steel, power and ferro alloys producer in a phased

manner. Presently, the company is engaged in the manufacturing and selling of pellets, sponge iron, steel billets,

wire rods, ferro alloys and power from its plant located at Raipur, Chhattisgarh.

In March 2013, SEML commissioned an 80 MWs power plant at its wholly owned subsidiary Sarda Metals & Alloys

Ltd (SMAL; rated CARE BBB/A3+) while the 0.10 MMTPA ferro alloy plant at the same premises became

operational recently in June 2014.

Apart from these, SEML has invested in several other subsidiaries/SPVs/JVs with interests in power plants and

mining blocks. However, most of these subsidiaries are not yet operational.

Analyst Contact

Name: Mr. Divyesh Shah

Tel: 022 - 6144 3528




336

Brief Rationale












factors.

337

Brief Rationale

October 06, 2014

CARE suspends the ratings assigned to the bank facilities of Rajlaxmi Constructions Ltd

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Rajlaxmi Constructions

Ltd. The ratings have been suspended as the company has not furnished the information required by CARE for

monitoring of the rating(s).

Analyst Contact Name: Avik Podder

Tel # 033-40181640

Mobile # 9874221442













factors.


338

Brief Rationale

October 06, 2014

CARE suspends the ratings assigned to the bank facilities of Rourkela Steel Corporation

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Rourkela Steel

Corporation. The ratings have been suspended as the company has not furnished the information required by

CARE for monitoring of the rating(s).

Analyst Contact Name: Avik Podder

Tel # 033-40181640

Mobile # 9874221442













factors.


339

Brief Rationale

October 06, 2014

CARE suspends the ratings assigned to the bank facilities & instruments of

MSP Steel & Power Ltd.

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities & instruments of MSP Steel

& Power Ltd. The ratings have been suspended as the company has not furnished the information required by

CARE for monitoring of the ratings.

Analyst Contact

Name: Ayush Poddar

Tel: 033-4018 1637













factors.


340

Brief Rationale

October 06, 2014

CARE suspends the rating assigned to the bank facilities of Farmax India Limited

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Farmax India Limited. The ratings have been suspended as the company has not furnished the information required by CARE for monitoring of the ratings.

Analyst Contact


Tel: 040 4010 2030










341

Brief Rationale

October 06, 2014

CARE assigns ‘CARE BBB-(SO)/CARE A3 (SO)’ ratings to the bank facilities of

Varun Vinimay Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 14 CARE BBB- (SO)

[Triple B Minus (Structured Obligation)] Assigned

Short term Bank Facilities 4 CARE A3 (SO)

[A Three (Structured Obligation)] Assigned

Total Facilities@ 18

@ backed by unconditional and irrevocable corporate guarantee provided by VSP Udyog Pvt Ltd.

Rating Rationale

The above ratings are based on the credit enhancement in the form of unconditional and irrevocable corporate

guarantee provided by VSP Udyog Pvt Ltd. (VUPL, rated CARE BBB-/ CARE A3) for the bank facilities of Varun

Vinimay Pvt Ltd (VVPL).

VUPL’s ratings takes into account long experience of the promoters in the iron & steel industry, regular infusion of

funds by the promoters, strategic location of plant with close proximity to raw material source, high utilization of

its existing facilities and increase in scale of operation with higher branding focus. The rating is, however,

constrained by lack of backward integration amidst volatility in raw-material prices, low profitability margin due to

intense competition, working capital intensive nature of operation, moderate financial risk profile marked by thin

net profitability & modest capital structure, and cyclicality associated with the steel industry. Ability of the

company to improve profitability margins and effective management of working capital are the key rating

sensitivities.

Background

VVPL, incorporated in 1997 by Mr Om Prakash Agarwala, is involved in the manufacturing of Mild Steel (MS)

products like round, square, flat, angle, channel, and TMT bars. The company has a rolling mill of a capacity of

30,000 MTPA at Howrah, West Bengal. Apart from manufacturing, the company is also involved in trading of MS

round, flat, angle, channel, TMT bar, galvanized corrugated sheet, galvanized plain sheet, etc.

VVPL reported a PAT of Rs.0.28 crore (PY: Rs.0.21 crore) on total income of Rs.86.05 crore (PY: Rs. 87.98 crore)

during FY13. As per the provisional results for FY14, it reported a PAT of Rs.0.36 crore on total income of Rs.94.88

crore.

Analyst Contact


Tel: 033 4018 1605






342

Brief Rationale







343

Brief Rationale

October 06, 2014


Universal Freight Management India Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 14.40 CARE BB- [Double B Minus]

Assigned


Rating Rationale

The rating assigned to the bank facilities of Universal Freight Management India Private Limited (UFM) is primarily

constrained by the relatively modest scale of operations, moderately leveraged capital structure and weak debt

coverage indicators. The rating is further constrained by the moderately stretched working capital cycle leading to

high utilization of working capital borrowings and its presence in the highly fragmented and competitive logistic

industry.

The rating derives strength from the experienced promoters supported by experienced management team,

reputed clientele base and strong marketing network.

Going forward, the ability of UFM to scale up its operations and subsequently improve its cash accruals along with

improvement in its capital structure through efficient management of working capital cycle are the key rating

sensitivities.

Background

Incorporated in 2009 by Mr Raajeev Bhatnagar and Mr Sheshagiri Kulkarni as Communicare Infra India Private

Limited and subsequently name changed to Universal Freight Management India Private Limited (UFM), the

company is engaged in providing services such as air and ocean forwarding, multi-modal transport, custom

clearance, distribution, contract logistics, warehousing, logistic consultancy services and others. In FY14

(provisional; refers to the period April 01 to March 31), UFM generated 65% of its revenue from air freight

forwarding.

UFM is an ISO 9001:2008 certified company with branch office currently operating at Mumbai, Bengaluru, Chennai,

Hyderabad, Delhi and Kolkata. Moreover, the company has acquired Amarjyoti India Private Limited in 2009 to

obtain International Air Transport Association (IATA) and Customs House Agent (CHA) licence.



344

Brief Rationale

During FY14 (provisional), UFM recorded a total sales of Rs.57.53 crore vis-à-vis Rs.37.85 crore in FY13 and PAT of

Rs.1.24 crore in FY14 vis-à-vis Rs.0.64 crore in FY13.












345

Brief Rationale

October 06, 2014

CARE assigns ‘CARE BB’ and ‘CARE A4’ ratings to bank facilities of

Jhandewalas Foods Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B) Assigned


Assigned


Rating Rationale

The ratings assigned to the bank facilities of Jhandewalas Foods Private Limited (JFPL) are constrained on account

of its limited presence in the value chain of dairy industry with low value addition resulting in thin profitability

margins, leveraged capital structure, weak debt coverage indicators and working capital intensive nature of its

operations. The ratings are further constrained due to geographical concentration of its operations, product

concentration risk, competition from organized and unorganized players and sensitivity of profitability to changes

in the government policies and environmental conditions.

The ratings, however, derive strength from the long experience of the management in milk products industry,

established marketing arrangements as well as brand image, continuous growth in its scale of operations and

better prospects of the dairy industry in India.

Going forward, the company’s ability to scale up its operations with an improvement in profitability, ensuring

assured and reliable availability of raw material, geographical and product diversification and better working

capital management will remain the key rating sensitivities.

Background

JFPL is a Jaipur-based company that was incorporated in 2006 by Mr Rakesh Koolwal and his father Mr Bhanwar Lal

Koolwal. The company has been promoted by the Koolwal family which has been involved in the trading of ghee

(clarified butter) for more than 100 years. JFPL is involved in the manufacturing of ‘pure ghee’ at its sole

manufacturing facility located at V.K.I. Area, Jaipur. The company also manufactures nutriflakes at a leased plant in

Navsari, Gujarat. The company is also involved in the trading of ‘pure ghee’ of other brands and other different

products like rice, guar gum, oil, etc apart from repackaging and sale of grocery items such as saffron, sugar, and

sweets. All the products (except ghee of other brands) are sold by the company in its own packing under its

established brand name ‘Jhandewalas Naman’. JFPL is an ISO 9001-2000 certified and HACCP certified company for

the purpose of Food Safety Management System.



346

Brief Rationale

The company has recently increased its ‘ghee’ processing capacity from 10,000 litres per day

(LPD) to 27,000 LPD by executing a project at the cost of Rs.0.86 crore which was funded

through term loan of Rs.0.50 crore and internal accruals of Rs.0.36 crore.

As per the Audited results for FY13 (refers to the period April 1 to March 31), JFPL reported a total operating


Analyst Contact Name: Harsh Raj Sankhla Tel: 0141-4020213/214 Email: [email protected]










347

Brief Rationale

October 06, 2014

CARE assigns ‘CARE A (SO)’ rating to the proposed NCD issue of

Hypercity Retail India Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Non-Convertible Debentures (Long Term) 50

CARE A (SO) In Principle

(Single A In Principle (Structured

Obligation)@

Assigned

Total Facilities 50

@ to be backed by unconditional and irrevocable corporate guarantee to be provided by Shoppers Stop Limited

(SSL). The ‘in-principle’ rating will be confirmed after the execution and verification of the transaction documents to

the satisfaction of CARE.

Rating Rationale

The above rating is based on the credit enhancement in the form of unconditional and irrevocable corporate

guarantee to be provided by Shoppers Stop Ltd. (SSL, rated CARE A/A1 for its various facilities) for the proposed

Non Convertible issue of Hypercity Retail India Ltd. (HRIL). The above mentioned NCD entails a trigger clause for

immediate repayment in case of rating downgrade of HRIL beyond a minimum specified level.

The ratings of SSL continue to derive strength from the strong and resourceful promoters, experienced

management and established track record of Shoppers Stop Ltd (SSL) in the retail industry along with strong brand

loyalty among its consumers. The ratings also derive strength from its efficient inventory management system and

efficient working capital cycle.

The ratings, however, continue to be constrained by the financial as well as off-balance sheet support provided to

its subsidiaries and joint ventures (JVs) and inherent industry risk.

The ability of SSL to improve its profitability from the new as well as existing stores and achieve timely break-even

in the stores planned across all formats, and thereby generate sufficient accruals to fund its expansion plans along

with self-sufficiency of its subsidiaries (especially Hypercity) and JVs are the key rating sensitivities.

Background

Hypercity Retail (India) Ltd. was incorporated on May 27, 2004 as a Private Limited Company. The company

became a Public Limited Company on March 30, 2007. The company is engaged in the business of retailing - mainly

food & grocery, health & beauty products, fruits & vegetables, homeware & homecare products, furniture,

appliances, multimedia, sports, toys & readymade garments. The company also has presence in the real estate



348

Brief Rationale

business. As at March 31, 2014, the company operated through 15 Hypercity stores located in different cities of

India, of the same, six stores have achieved break-even at the PBILDT level as on March 31, 2014.

The total operating income for HRIL for FY14 (refers to the period April 01 to March 31) stood at Rs.878 crore (vis-

à-vis Rs.781 crore in FY13), whereas net losses almost remained at a similar level of Rs.86 crore in FY14 vis-à-vis

Rs.88 crore in FY13. In Q1FY15, the company posted a net loss of Rs. 18.40 crore on a total income of Rs. 235.65

crore vis-à-vis a net loss of Rs. 24.72 crore on a total income of Rs. 216.47 crore in Q1FY14.

Analyst Contact

Name: Rashmi Shah

Tel: 022-6754 3429










349

Brief Rationale

October 06, 2014

CARE assigns ‘CARE A1’ rating to the CP programme of

Orient Paper & Industries Limited

Rating

Instrument Amount

(Rs. crore) Ratings

1 Remarks

Short Term Instrument –

Commercial Paper (CP)* 25.0

‘CARE A1’ (Single A one)

Assigned

*by earmarking fund based working capital limit

Rating Rationale

The rating draws support from long experience of the promoters, OPIL being part of established C.K. Birla group,

strong brand name and satisfactory growth of the electrical consumer division (ECD) with wide distribution

network. The rating also factors in the improvement in the performance of paper division on account of benefits

arising from the operational initiatives taken, however, the losses still continues. The rating on the other hand is

constrained by volatility in raw material prices of paper division and competitive nature of the electric consumer

industry.

Ability to further improve the operating performance of the paper division and improve overall profitability shall


Background

Incorporated in July, 1936, Orient Paper & Industries Ltd. (OPIL) belonging to G.P. - C.K. Birla group is currently

engaged in manufacturing paper and electrical items. Currently, the company has two divisions, a paper unit at

Madhya Pradesh having a capacity of 1,10,000 tonnes p.a. (printing and writing paper 85000 tpa and tissue paper

25,000 tpa) and electrical consumer division (ECD) having a fan capacity of 80 lakh units p.a. and lights &

luminaries capacity of 132 lakh units p.a, situated in Haryana & West Bengal.

Till FY12, the company was also engaged in manufacturing of cement with a cement plant in Andhra Pradesh and

one grinding unit in Maharashtra with an aggregate capacity of 5 mn tonnes p.a. which was demerged with effect

from April 01, 2012.

On total operating income of Rs.1583.4 crore, OPIL earned PBILDT of Rs.54.1 crore and PAT of Rs.4.2 crore in FY14.

During Q1FY15, OPIL incurred a loss of Rs.22.3 crore on total operating income of Rs.393.1 crore.

Analyst Contact


Tel # 033 4018 1609

Mobile # 9051730850




350

Brief Rationale












factors.

351

Brief Rationale

October 06, 2014

CARE assigns ‘CARE D’ rating to bank facilities of

Ishwar Soap Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 8.41 CARE D

(Single D) Assigned

Rating Rationale

The rating assigned to the bank facilities of Ishwar Soap Limited (ISL) is primarily constrained on account of the

instances of delay in debt servicing due to its stretched liquidity position.

Establishing a clear track record of timely servicing of debt obligations alongwith an improvement in the liquidity

position is the key rating sensitivity.

Background

Godhra-based (Gujarat) ISL was established in 2004 as a proprietorship concern by Mr Prakash Sundesha in the

name of Ishwar Soap Industries (ISI) and was subsequently converted to a limited company in 2009. ISL is involved

in the manufacturing oil based washing soaps under the brand name ‘Ujala’ and also undertakes trading of

detergent based washing soaps and match boxes. ISL bought ‘Ujala’ brand from Madhusudan Industries during

2006 and currently market its products under in three different variants such as Ujala Superfine, Ujala Gold and

Ujala King. ISL has an installed capacity to produce 2000 metric tons (MT) of oil based soaps per month. During

FY14 (refers to the period April 1 to March 31), ISL derived 95% of its total income from the sale of oil based soap

while the rest was derived from trading activity.

During FY14 (provisional), ISL reported a net profit of Rs.0.55 crore on a Total Operating Income (TOI) of Rs.37.36

crore as against a net profit of Rs.0.41 crore on a TOI of Rs.28.27 crore in FY13.

Analyst Contact Name: Nitin Jha Tel: (079) 40265656 Email: [email protected]






352

Brief Rationale

Disclaimer

CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors.

353

Brief Rationale

October 06, 2014


Sabarkantha District Cooperative Milk Producers' Union Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(reduced from 185.33) CARE AA+





Rating Rationale

The ratings of Sabarkantha District Cooperative Milk Producer’s Union Ltd continue to factor in its well established

operations as one of the largest unions of the strong marketing federation; Gujarat Co-operative Milk Marketing

Federation (GCMMF) with well-known brands ‘Amul’ and ‘Sagar’.

The ratings also continue to factor in its geographically diversified revenue stream through satellite dairies outside

Gujarat, expanding supplier base, comfortable liquidity position and its strong milk procurement network ensuring

stability in the operations alongwith cattlefeed supplies to farmers for yield improvement.

The ratings also take into cognizance the union’s debt-funded capex for build-up of its own milk and milk products

processing facilities outside Gujarat, albeit remain constrained with the project stabilisation risk alongwith risk

associated with milk supply.

Any environment and epidemic-related factors having a significant impact on its operations for a longer term, any

adverse changes in the Amul cooperative structure and its financial flexibility and any large sized debt funded

capex would be the key rating sensitivities.

Background

Incorporated in 1964, Sabarkantha District Cooperative Milk Producers’ Union Ltd (SDCMPUL; the union) is a

cooperative dairy processing unit (DPU) and part of the three-tier dairy cooperative structure of Gujarat, known as

the ‘Anand Pattern’ or ‘Amul Structure’.

The union procures milk from around 1,874 member village cooperative societies (VCS) consisting of around 3.61

lakh farmers, which hold the entire shareholding in SDCMPUL. It had a total milk processing capacity of 14 lakh

litres per day (LLPD) as on March 31, 2014, from its milk processing unit at Himmatnagar.

As per the audited results for FY14 (refers to the period April 1 to March 31), the union registered a total operating

income of Rs.2,424 crore with a PAT of Rs.12 crore as against a total operating income of Rs.2,084 crore with a PAT



354

Brief Rationale

of Rs.8 crore in FY13. During the first four months of FY15, till July 31, 2014, the union registered a total operating

income of Rs.860 crore.

Analyst Contact


Tel: 079-40265618











355

Brief Rationale

October 06, 2014


Strata Geosystems India Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks



CARE BBB+

(Triple B Plus) Reaffirmed



CARE A3+

(A Three Plus) Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Strata Geosystems (India) Private Limited, (SGIPL) continue to derive

strength from its experienced promoters, strong technical support from the foreign partner, reputed clientele base

and a healthy order book position. The ratings further continue to derive strength from the moderately

comfortable profitability margins, comfortable capital structure and strong debt coverage indicators.

The ratings however, continue to be constrained by the relatively modest scale of operations, absence of cost

escalation clause in the contract, elongated working capital cycle and inherent industry risk characterized by

volatile raw material prices and high dependence on its clients for timely completion of projects.

Ability of SGIPL to increase its scale of operations and maintain its profitability margins in the scenario of improving

infrastructure sector along with efficient management of the working capital cycle would be the key rating

sensitivities.

Background

Incorporated in September 2004, Strata Geosystems (India) Private Limited (SGIPL), is a joint venture promoted by

Omnitex Industries (India) Limited and Strata Systems Inc (USA, STRATA). Strata Systems Inc, USA (STRATA) is in the

business of manufacturing and marketing of stratagrid (Geo-grid under the brand name Strata) in US. SGIPL is

primarily engaged in the technical textiles market and specifically focuses on manufacturing of Geogrids (a

reinforcement material; consisting of 30% of overall sales) along with providing end-to-end solutions (from

designing to execution) for constructing of retaining wall (used in the approach road for fly-overs) with use of

Geogrids. As on March 31, 2014, the company has an installed capacity to produce 4.50 million sq. mtr per annum

of Pet Geo Grid per annum.



356

Brief Rationale

Moreover, in April 2014, the company has commenced production of Geo Cell at the Daman plant with an installed

capacity to produce 4.20 lakh sq.mtr per annum. SGIPL is also an exclusive distributor of BEBO arch system in India.

During FY14 (refers to the period April 1 to March 31, provisional), SGIPL reported total operating income of

Rs.64.03 crore (up by 1.12% vis-à-vis FY13) and PAT of Rs.2.28 crore (down by 5.79% vis-à-vis FY13). Furthermore,

as per provisional Q1FY15, the company has posted a total operating income of Rs.20.80 crore vis-à-vis Rs.12.87

crore in Q1FY14) and PAT of Rs.1.41 crore (vis-à-vis PAT of Rs.0.51 crore in Q1FY14).







357

Brief Rationale

October 06, 2014

CARE reaffirms and assigns ‘CARE A4’rating to the Bank Facilities of

E.S. Knit Wear

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 3.93 CARE BB- (Double B Minus)

Reaffirmed


Assigned


The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the

firm at present. The ratings may undergo a change in case of withdrawal of the capital or the unsecured loans

brought in by the proprietor in addition to the financial performance and other relevant factors.

Rating Rationale

The ratings assigned to the bank facilities of E.S. Knit Wear (ESW) are constrained by the small scale and working

capital intensive nature of operations, exposure to the export markets with associated risks of their economic

environment and susceptibility of ESW’s revenues and profitability to forex fluctuations. The ratings are further

constrained by the declining PBILDT margins, weak debt coverage indicators, the firm’s presence in a highly

fragmented and intensely competitive industry as well as the constitution of the entity as a proprietorship

concern.

The ratings derives comfort from the long experience of the proprietor in the textile industry, the firm’s

established relationship with major clients and suppliers as well as the growth in income over the last three year

period.

Going forward, the ability of the firm to scale up its operations, sustain its profitability, diversify its client base and

manage working capital requirements prudently would be the key rating sensitivities.

Background

ESWis a proprietorship firm engaged in the manufacture and export of readymade garments - men’s

wear of all sizes addressing the European and US market. The business was originally constituted as a

partnership in 1985 by Mr Eswaran (aged 64 years) and Mr Swaminthan with an installed capacity of

100,000 pieces per annum. Later in 2007, Mr Eswaran took over the share of Mr Swaminathan and

converted the business into a proprietorship concern. The firm has about 150 stitching machines, 30

knitting machines, pressing machines, embroidery machines, printing machines etc. ESW has a



358

Brief Rationale

production capacity of 12 lakh pieces per annum as on March 31, 2014. About 70% of exports are

denominated in Euros and 30% in USD.

ESW has achieved a PAT of Rs.0.33 crore on a total operating income of Rs.16.35 crore in FY14 (refers to the

period April 1 to March 31, provisional) as compared with a PAT of Rs.0.20 crore on a total operating income of

Rs.11.95 crore in FY13.

Analyst Contact

Name: T A Seethalakshmi

Tel: 044-28497812













factors.


359

Brief Rationale

October 06, 2014


NSL Tidong Power Generation Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 459 CARE B Reaffirmed


Rating Rationale

The rating of NSL Tidong Power Generation Private Limited (NTGPL) continues to be constrained by the slow

progress of the project leading to significant time and cost overrun, delay in acquiring land for transmission line

due to pending clearance from the Ministry of Environmental and Forestry (MoEF), geological and hydrological

risks associated with the project and funds yet to be tied up for meeting the requirement of cost overrun. The

rating, however, is underpinned by the long track record of NSL Group, experience of the holding company NSL

Renewable Power Private Limited (NRPPL) in implementing and managing renewable projects and timely infusion

of funds by the promoters. Ability of the company to tie-up funds for cost overrun, secure long term power

purchase agreement (PPA) at relatively higher tariff and complete the project within the revised cost and timeline

are the key rating sensitives.

Background

NSL Tidong Power Generation Pvt. Ltd (NTGPL), a project SPV promoted by Hyderabad-based NSL Group, which

was incorporated on April 29, 2008 for setting up a 100 MW (2x50 MW) ‘Run of the River’ hydro power plant over

the Tidong river in Kinnaur district in the state of Himachal Pradesh. NTPGL is a subsidiary of NRPPL, which is a part

of Hyderabad-based NSL group and is engaged in the business of renewable power generation.

Project cost has been revised to Rs.1113.42 crore (increase of Rs.457.09 crore). The increase in project cost is

proposed to be funded with equity of Rs.137.13 crore and debt of Rs.319.96 crore. As on August 18, 2014, NTGPL

incurred a cost of Rs.445.54 (40% of the revised cost of the project of Rs.1113.42 crore) which is funded with a

debt of Rs.296.74 crore and equity of Rs.160.36 crore. The promoters had brought 47.92% of the total equity

commitment of Rs.334.63 crore. NTPGL revised the project Commercial Operations Date (COD) to February 01,

2017 which was initially envisaged to be February 01, 2015.

Analyst Contact


Tel: 040-40102030






360

Brief Rationale







361

Brief Rationale

October 06, 2014


Sujala Pipes Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Single D) Re-affirmed


(enhanced from 14.65) CARE D

(Single D) Re-affirmed


Rating Rationale

The ratings continue to remain constrained by the stretched liquidity position resulting in delays in debt servicing.

Background

Sujala Pipes Private Limited (SPPL), belonging to the Nandi group of Kurnool, Andhra Pradesh (A.P.), was

incorporated in 1982 as a partnership concern and was reconstituted as a Private Limited Company in February

1988. SPPL is engaged in the manufacturing of Polyvinyl Chloride (PVC) rigid pipes & fittings (having installed

capacity of 32,000 MTPA) used in irrigation projects, water management, sewerage & drainage industry etc.

During FY14 (Provisional, refers to the period April 01 to March 31), SPPL posted a PBILDT of Rs.11.41 crore (Rs.

14.65 crore in FY13) and a PAT (after deferred tax) of Rs.1.29 crore (Rs.3.33 crore in FY13) on a total operating

income of Rs.216.07 crore (Rs.185.37 crore in FY13).

Analyst Contact

Name: Puja Jalan

Tel: 040-40102031












362

Brief Rationale

October 06, 2014


Tangnu Romai Power Generation Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 224 CARE B



Rating Rationale

The rating continues to remain constrained by the location of the project in a seismic zone four, exposure to

geological & hydrological risks associated with hydro power projects, project progress behind schedule with

significant time and cost overrun and funds yet to be tied up for financing the cost overrun. The rating is, however,

underpinned by the strong promoter group, presence of requisite statutory clearances and off-take agreement for

both the proposed two units. The ability of the company to tie-up funds for the increased project cost and

successfully complete the project within the revised cost and time schedule are the key rating sensitivities.

Background

Tangnu Romai Power Generation Private Ltd (TRPGPL), incorporated on January 20, 2005, is setting up a 50 MW

(44 MW, referred as TR I and 6 MW, referred as TR II) ‘Run of the river’ hydel power plant in Shimla district in the

state of Himachal Pradesh. The project has been awarded by the Government of Himachal Pradesh on Build, Own,

Operate and Transfer (BOOT) basis for a period of 40 years from the scheduled commercial operations date (COD).

The aggregate project cost has been revised to Rs.603.2 crore from Rs.320 crore which is proposed to be financed

at a debt-equity of 1.86:1 (term loan from banks Rs.392.09 crore and balance equity contribution from the

promoters). The company has incurred Rs.221.4 crore as on July 31, 2014. The commercial operation date (COD)

has been revised to April 01, 2017 (from November 2015) for TR I and December 01, 2014 (from November 2013)

for TR II.

The company has been promoted by PCP International Ltd (PIL) and the Hyderabad-based NSL Group with NSL

group holding 49% equity stake (through NSL Renewable Power P Ltd) and the balance to be transferred by PCP

after a period of three years from the commissioning of the project.



363

Brief Rationale

Analyst Contact

Name: Puja Jalan

Tel: 040-40102031











364

Brief Rationale

October 06, 2014


Ansaldo Caldaie Boilers India Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 6.75 CARE C

[Single C] Revised from CARE C (SO)

[Single C (Structured Obligation)]

Short-term Bank Facilities 10.00 CARE C

[Single C] Revised from CARE C (SO)

[Single C (Structured Obligation)]

Long/Short-term Bank Facilities

30.00 CARE C/CARE A4 [Single C/A Four]

Revised from CARE C (SO)/CARE A4 (SO) [Single C/ A Four (Structured Obligation)]


Rating Rationale

The ratings assigned to the bank facilities of Ansaldo Caldaie Boilers India Private Limited (ABIPL) has been

reaffirmed on account of overdrawals in working capital related fund-based bank limits, largely owing to month

end interest. The rating is further constrained due to deteriorating financial profile of the company alongwith weak

order book position and erosion of net worth on account of cash losses incurred by ABIPL.

ABIPL’s ability to scale up operations, improve profitability margins, efficiently manage working capital cycle

amidst delays in recoveries from customers and timely servicing of debt obligations are the key rating sensitivities.

Background

ABIPL is a joint venture between Gammon India Limited (73%, (GIL, rated CARE C/CARE D/CARE A4 for bank

facilities and instruments) and Ansaldo Caldaie SPA of Italy (26%). ABIPL is engaged in manufacturing industrial

boilers, power utility steam boilers and Engineering, Procurement and Construction (EPC) related to power

utilities. Ansaldo Caldaie SPA of Italy is one of the largest Italian boiler manufacturers and has over 150 years’

experience in steam generation and burners technology.

Credit Risk Assessment

Weak financial profile

Net sales of ABIPL declined for the period ended December 31, 2013 owing to weak order book position leading to

low scale of operations and general slowdown in the Indian economy leading to losses and erosion of net worth.

There have been delays in recoveries from customers constraining the liquidity position of the company which

resulted in elongated working capital cycle. With weak order book position and deteriorating financial profile,

ability of the company to scale up operations remains to be seen.

Reduced bank facilities albeit overdrawals in fund based limits

Owing to reduced scale of operations, low order book and losses incurred, bank facilities of ABIPL were suo moto

reduced by the banker’s of the company; the total exposure is reduced to Rs.72.50 crore from previous exposure

of Rs.159.00 crore as on June 30, 2014, There are instances of overdrawals in working capital related fund-based

bank limits owing to month-end interest, whereas, there are no revocations/devolvement in non-fund based limits

and interest servicing on term loan is timely.



365

Brief Rationale

Financial Performance

(Rs. Cr)

For the period ended / as at, March 2012 March 2013

December

2013

(12m, A) (12m, A) (9m, A)

Working Results

Total Operating income 168 110 16

PBILDT 7 (20) (24)

Interest 3 8 5

Depreciation 2 2 1

PBT 2 (32) (33)

PAT (after deferred tax) 1 (32) (33)

Gross Cash Accruals 3 (30) (32)

Financial Position

Equity Capital 50 50 50

Networth 54 24 (9)

Total capital employed 99 78 38

Key Ratios

Profitability

PBILDT/Total Operating income (%) 4.14 NM NM

PAT (after deferred tax)/ Total income (%) 0.70 NM NM

ROCE (%) 6.60 NM NM

Average cost of borrowing (%) 14.81 17.24 14.85

Solvency

Long Term Debt Equity ratio (times) 0.17 0.38 NM

Overall gearing ratio(times) 0.74 2.15 NM

Interest coverage(times) 2.05 NM NM

Term debt/Gross cash accruals(years) 2.84 NM NM

Liquidity

Current ratio(times) 0.99 0.72 0.43

Quick ratio(times) 0.77 0.55 0.29

Turnover

Average collection period (days) 104 212 NM

Average creditors (days) 48 99 NM

Average inventory (days) 36 59 NM

Operating cycle (days) 92 171 NM

NM: Not meaningful

Analyst Contact

Name: Ms. Smita Rajpurkar

Tel: 022-6144 3594




366

Brief Rationale







367

Brief Rationale

October 06, 2014


Micro Therapeutic Research Labs Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 25.76 CARE BBB [Triple B]


Short term Bank Facilities 0.50 CARE A3 [A Three]

Reaffirmed


Rating Rationale

The revision in the long-term rating of the bank facilities of Micro Therapeutic Research Labs Private Limited (MTR)

factors in the healthy growth in revenues, healthy profitability and accruals as well as the improvement in the

capital structure of the company during FY14 (refers to the period April 1 to March 31). The ratings continue to

derive strength from the experience of the promoters in the pharmaceutical business, well-equipped facilities

providing the full range of services from Bio-Availability (BA)/ Bio-Equivalence (BE) studies to Phase-I & IV clinical

research, reputed and growing clientele as well as the benefits derived from national and international

accreditations and approvals.

The ratings continue to be constrained by the modest scale of operations, concentration of revenue to one service,

client contract renewal risk as well as the company's dependence on R&D budgets of pharmaceutical companies

and their policy for outsourcing the clinical research work. The ratings are further constrained by the increasing

level of competition in the Indian CRO industry amidst a highly regulated environment.

Going forward, the ability of the company to sustain its revenue growth and profitability while diversifying its

revenue stream and manage its working capital requirements amidst the growing scale of operations will be the


Background

Micro Therapeutic Research Labs Pvt Ltd (MTR) is a Chennai-based full-service Clinical Research Organization (CRO)

providing various research services including Bio-Availability (BA) / Bio-Equivalence (BE) studies, pre-clinical and

clinical trials (Phase I – Phase IV), statistical reporting and data management to leading domestic and global

pharmaceutical clients. The company was established in the year 2005 by Mr M Ganesan, who is the managing

director. Presently, the company owns a fully-equipped 110 bed facility (area: 16,200 sq ft) at Selaiyur, Chennai

and a 100 bed rented facility (area: 23,000 sq ft) at Coimbatore to carry out subject screening.

Income from BA/BE studies contributed about 95% of the total income in FY14 and the remaining was contributed

through clinical trials though the company has been taking steps towards diversifying into pre-clinical and clinical

trials.

During FY14, MTR registered a PAT of Rs.8.06 crore on a total operating income of Rs.60.55 crore as compared

with PAT of Rs.5.79 crore on a total operating income of Rs.44.96 crore registered during FY13.



368

Brief Rationale

Analyst Contact

Name: T.A. Seethalakshmi

Tel: 044-28490876

Mobile: 91766 61581











369

Brief Rationale

October 06, 2014

CARE revises/reaffirms ratings assigned to bank facilities and instruments of

Gammon India Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


[Single D] Revised from CARE C

[Single C]

Long/Short-term Bank Facilities 10,355.00 CARE C/CARE A4 [Single C/A Four]

Reaffirmed


Non-Convertible Debentures 324.00 CARE D

[Single D] Revised from CARE C

[Single C]

Rating Rationale

The ratings assigned to the bank facilities and instrument of Gammon India Limited (GIL) have been revised owing

to delays in servicing of interest on non-convertible debentures and overdrawals in fund-based limits. The liquidity

position of the company is constrained due to delays in recoveries from customers, project execution delays

resulting in holding of high inventory thereby blocking working capital funds and cost-overruns which in turn

resulted to cash losses being incurred.

GIL’s ability to improve profitability margins, efficiently manage working capital cycle amidst delays in recoveries

from customers and timely servicing of debt obligations are the key rating sensitivities.

Background

Incorporated in 1922, GIL is the flagship company of the Gammon group and offers services covering the whole

gamut of the civil and construction activities. GIL undertakes construction of roads, bridges, flyovers, power

plants, chimneys and cooling towers, cross-country pipelines, structures for hydro-electric power projects,

buildings and factories. The company has also been present in the infrastructure project development space since

2001 through GIL’s subsidiary Gammon Infrastructure Projects Limited (GIPL, 74.98% stake, rated CARE BBB+/

CARE A3+ for bank facilities and instruments), which executes public private partnership based projects in the

road, port and power sectors through project-specific special purpose vehicles.

The company has provided corporate guarantee to non-convertible debentureholders of Metropolitan Infra

Housing Private Limited (subsidiary of GIL, rated CARE D for instruments)for repayment of principal and interest,

which is currently, revoked.

Credit Risk Assessment

Delays in servicing of debt obligations

The liquidity position of the company is constrained on account of delays in recoveries from customers as reflected

in increase in collection period to 188 days as at the end of December 2013 as compared to 149 days as at the end

of March 2013. Moreover, the working capital is blocked in inventory owing to delays in execution of projects as

reflected in inventory holding period of 153 days as at the end of December 2013 as compared to 136 days as at

the end of March 2013. Thus, the working capital cycle remains elongated. On account of the above, there have



370

Brief Rationale

been delays in servicing of interest on non-convertible debentures as well term loans and overdrawals in fund-

based facilities.

Improvement in profitability albeit high interest costs and negative cash accruals

The company reported negative operating margin in 9MFY14 owing to cost overruns due to delays in projects and

writing off of irrecoverable advances to suppliers, sub-contractors, retention money and debtors. Nevertheless,

the operating margins have improved during half year ended June 30, 2014 owing to decline in material cost, sub-

contracting charges and increase in other income.

However, interest and finance cost continues to increase during half year ended June 30, 2014 owing to delays in

repayment of loans and higher utilisation of working capital facilities. Hence, on account of the above factors, the

company continues to report negative cash accruals.

On a consolidated level, Gammon group reported net loss of Rs.817 crore on a total income of Rs.4,977 crore in

9MFY14 as against PAT of Rs.922 crore on a total income of Rs.7,504 crore in FY13.

Standalone Financial Performance

(Rs. Cr)


December

2013

(12m, A) (12m, A) (9m, A)

Working Results

Total Operating income 5,707 5,335 3,388

PBILDT 642 235 (128)

Interest 396 477 426

Depreciation 102 107 83

PBT 147 (440) (911)

PAT (after deferred tax) 87 (446) (766)

Gross Cash Accruals 175 (335) (832)

Financial Position

Equity Capital 28 28 28

Networth 2,077 1,669 856

Total capital employed 4,825 5,201 5,201

Key Ratios

Profitability

PBILDT/Total Operating income (%) 11.25 4.40 (3.77)

PAT (after deferred tax)/ Total income (%) 1.53 (8.35) (22.61)

ROCE (%) 12.27 0.72 NM

Average cost of borrowing (%) 15.29 15.21 14.42

Solvency

Long Term Debt Equity ratio (times) 0.24 0.68 3.81

Overall gearing ratio(times) 1.32 2.11 5.07

Interest coverage(times) 1.63 0.49 NM

Term debt/Gross cash accruals(years) 4.1 NM NM

Liquidity

Current ratio(times) 0.92 0.76 1.05

Quick ratio(times) 0.54 0.39 0.55

Turnover

Average collection period (days) 105 149 188

371

Brief Rationale


December

2013

(12m, A) (12m, A) (9m, A)

Average creditors (days) 87 106 121

Average inventory (days) 118 136 153

Operating cycle (days) 136 179 219

NM: Not meaningful

Analyst Contact

Name: Ms. Smita Rajpurkar

Tel: 022-6144 3594










372

Brief Rationale

October 06, 2014

CARE places rating assigned to bank facilities of

Athena Chhattisgarh Power Limited On Credit Watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 5250 CARE BB+

(Double B plus) Placed on Credit Watch


Rating Rationale

The above rating has been placed under ‘credit watch’, in view of the Supreme Court of India’s verdict on the de-

allocation of coal block, cancelling the allocation of 214 out of 218 coal blocks that were allotted to various

companies and the possible impact of the same on the credit profile of the company.

CARE is in the process of evaluating the impact of the event on the credit quality of Athena Chhattisgarh Power

Limited (ACPL) and would take a view on the rating when the exact implications of the above are clear.

The assigned rating to the bank facilities of Athena Chhattisgarh Power Limited (ACPL) is constrained primarily on

account time overrun and expected cost overrun in implementing the project and the limited experience of the

group in successfully developing and operating thermal power plants. The rating positively factors in experience of

the promoters, equity infusion by the promoters, advanced stages of entering into Fuel Supply Agreement (FSA)

with South Eastern Coal fields Ltd (SECL) and long-term off-take arrangement for a substantial portion of the

power to be generated.

The ability of ACPL to tie-up the funds for cost overrun, complete the project without any further time overrun and

finalize FSA with SECL and tie-up off-take agreements with pass-through arrangement will be key rating

sensitivities.

Background

Athena Chhattisgarh Power Limited (ACPL) was originally incorporated on February 14, 2007 as a private limited

company under the name of Banganga Power Pvt Ltd. Subsequently, the company got converted to a public

limited company and was renamed as ACPL, with effect from October 26, 2010. ACPL was incorporated as a special

purpose vehicle (SPV) for the development of a 1200 MW (600*2) coal based thermal power plant at Singhitarai in

Janjgir, Champa District of Chhattisgarh.

ACPL requires 5.2 Million Tons Per Annum (MTPA) of Coal annually to operate 1,200MW at 85% PLF. The company

has obtained a long-term coal linkage vide a Letter of Assurance (LoA) from South Eastern Coalfields Ltd. (SECL), a

subsidiary of Coal India Limited, for ‘F’ Grade Coal to the tune of 2.747 MTPA, which would meet nearly 53% of its

coal requirement (for 85% PLF). The remaining 47% of the coal requirement was proposed to be sourced from the

captive mine block of Fatehpur East Coal Block (FEC) located at Chhattisgarh, which was awarded by the Ministry

of Coal (MoC). However in September 2014, Supreme Court of India cancelled the allocation of 214 out of 218 coal

blocks that were allotted to various companies since 1993 and FEC is one of among those that got cancelled. With

cancellation of captive coal block, ability of the company to tie-up for additional coal linkage and its impact on

financial performance and capital structure remains to be seen.



373

Brief Rationale

Analyst Contact


Tel: 040-40102030










374

Brief Rationale

October 06, 2014

CARE withdraws the rating assigned to NCD issue of

Religare Finvest Limited

CARE has withdrawn the rating assigned to the NCD issue of Religare Finvest Ltd with immediate effect, as the

company has fully repaid the amounts under the said issue and there is no amount outstanding under the issue as

on date.

Analyst Contact Name: Ms.Ankita Sehgal Tel # 011-45333226 Mobile # +91 9958700336 Email: [email protected]



Note: Mr V. K. Chopra, who is an Independent Director on the Board of Religare Asset Management Company (part of Religare group), is one of CARE’s Rating Committee Members. To comply with the regulations, the member has not participated in the rating process and its rating committee meeting.








375

Brief Rationale

October 06, 2014

CARE suspends the rating assigned to the bank facilities of Sai Kripa Real Estate Private Limited

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Sai Kripa Real Estate

Private Limited. The rating has been suspended as the company has not furnished the information required by

CARE for monitoring the rating.

Analyst Contact


Tel # 033-40181638

Mobile # 9883126457




Disclaimer: CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE

does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors

or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are

rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments.


376

Brief Rationale

October 01, 2014


Agrawal Channel Mills Pvt Ltd Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 36 CARE BB-


Total Facilities 36

Rating Rationale

The rating assigned to the bank facilities of Agrawal Channel Mills Pvt Ltd (ACMPL) takes into account of small scale

of its operation, weak financial risk profile, risks associated with implementation of the project and working capital

intensive nature of operation. The rating, however, derives comfort from the experience of promoters, strategic

location of plant with proximity to source of raw material, improvement in capacity utilization post taken over by

the new management and established distribution network of group companies. Ability of the company to

successfully complete the proposed project and derive benefits therefrom, optimal utilization of its existing

facilities & improve operating margin and effective management of working capital are the key rating sensitivities.

Background

Agrawal Channel Mills Pvt Ltd (ACMPL) was incorporated in 2006 by Mr. Prakash Madanlal Agrawal and Ms. Anju

Agrawal. The company is engaged in the manufacturing of ingot and rolled products (viz. MS angle, channels,

beams etc), with an installed capacity of 28,800 MT for MS billets/ingots and 24,000 MT for rolled products. The

plant was shut down for a substantial period in FY12 and 7MFY13. In Nov 2012, ACMPL was taken over by the

Agrasen group and Laxmi Kripa group of Raipur and has carried out a major up gradation work, which has resulted

in improvement in utilization of facilities in FY14. Currently, the company plans to enhance its billet/ingot capacity

to 60,000 MTPA and rolled products to 96,000 MTPA by Oct 2014 at a cost of Rs.16.56 crore, being funded at a

debt-equity ratio of 2.63:1.

The company reported a PAT of Rs.0.18 crore on a total operating income of Rs.31.62 crore in FY13 (refers to the

period April 1 to March 31) as compared with a loss of Rs.0.24 crore on a total operating income of Rs.30.01 crore

in FY12. As per provisional result for FY14, it reported a PAT of Rs.0.36 crore on total operating income of Rs.92.52

crore.

Analyst Contact


Tel: 033 4018 1605






377

Brief Rationale







378

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BB-’ and ‘CARE A4’ ratings to the bank facilities of

Praja Mechanicals Private Limited Rating

Bank Facilities Amount

(Rs. crore) Rating

1 Remarks


[Double B Minus] Assigned

Long-term / Short-term Bank Facilities 10 CARE BB- / CARE A4

[Double B Minus /A Four] Assigned


Rating Rationale

The ratings assigned to the bank facilities of Praja Mechanicals Private Limited (PML) are primarily constrained by

its small and fluctuating scale of operations with low net-worth base, fluctuating profitability margins, its exposure

to volatility in raw material prices and foreign exchange fluctuation risk.

The ratings, however, draw strength from the experienced promoters and long track record of operations, its

association with reputed customer base and moderate capital structure.

Going forward, PML’s ability to stabilize its scale of operations while sustaining its profitability margins will be key

rating sensitivities. The ability of the company to effectively manage its foreign exchange risk and improving its

capital structure shall also be the key rating sensitivities.

Background

Incorporated in 1982, Praja Mechanicals Private Limited (PML) is promoted by Mr Jai Narayan Rungta, Mr Pradip

Kumar Rungta and Mr Rajesh Kumar Rungta. The company is engaged in the manufacturing of conveyors, material

handling equipment and allied parts at its manufacturing units located in Haryana and Uttar Pradesh. The company

caters directly to original equipment manufacturers (OEM’s) in the automobile industry. The main raw material

and semi-finished products includes steel and electrical components which are procured domestically as well as

imported from USA, Taiwan and China. The group associates of PML include Praja Control & System Private

Limited, Vialle Alternative Fuel System Private Limited and Praja Securities Limited are engaged in the

manufacturing of control panels, propane conversion equipment and trading of securities respectively.

For FY14 (refers to the period April 01 to March 31), PML achieved a Total operating income (TOI) of Rs.58.06 crore

with PBILDT and Profit After Tax (PAT) of Rs 7.02 crore and Rs.3.41 crore respectively as against TOI of Rs.10.90

crore with loss at PBILDT level and net loss of Rs.1.86 crore and Rs.1.74 crore respectively in FY13.

Analyst Contact

Name: Mr. Achin Nirwani

Tel: 011- 4533 3228





379

Brief Rationale












factors.

380

Brief Rationale

October 01, 2014

CARE assign ‘CARE B+’ and ‘CARE A4’ ratings to bank facilities of

Rajiva Exports Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 4 CARE B+


Short-term Bank Facilities 4 CARE A4 ( A Four)

Assigned

Total Facilities 8

Rating Rationale

The ratings assigned to the bank facilities of Rajiva Exports (REX) are primarily constrained by its weak financial risk

profile characterized by fluctuating scale of operations, low profitability margins, working capital intensive nature

of operations and foreign exchange fluctuation risk. The ratings are further constrained by its presence in the

highly fragmented and competitive nature of the trading industry and its constitution being a proprietorship firm.

The ratings, however, derives strength from the long track record of its operation, experienced proprietor and

moderate capital structure.

Going forward, the ability of the firm to improve its profitability margins, manage its foreign currency fluctuation

risk along with effective working capital management shall be key rating sensitivities.

Background

Delhi-based Rajiva Exports (REX) was established in 1993 as a proprietorship concern by Mr Rajiva Maheshwari.

The firm is engaged in trading of metal scrap and pulses. REX imports metal scraps from Singapore, Tanzania and

Ghana which are sold to steel manufacturers in Maharashtra. The firm also imports pulses from Tanzania and

Myanmar and sells the same to milling units engaged in processing of pulses. In FY13 (refers to the period April 1

to March 31), the firm started trading of sunflower de-oiled cake and it imports the same from Tanzania and sells

the same to solvent extractors in Karnataka and Maharashtra.

As per the provisional results for FY14, REX reported a total operating income of Rs.44.06 crore (Rs.31.74 crore in

FY13) and a PAT of Rs.0.09 crore (loss of Rs.1.14 crore in FY13).

Analyst Contact


Tel: 011- 45333228





381

Brief Rationale












factors.

382

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BB’ and rating to the bank facilities of

Suraksha Packers Private Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks


(Double B) Assigned


Rating Rationale

The rating assigned to the bank facilities of Suraksha Packers Private Limited (SPPL) is constrained on account of

the moderate financial risk profile characterized by moderate gearing level and debt coverage indicators. The

rating is further constrained on account of modest profitability, moderate capacity utilization level along with

presence in a highly fragmented and competitive industry.

The rating, however, derives strength from the long experience of the promoters along with long standing

association with reputed clientele signifying stable growth in operations. The rating further derives strength from

the stable demand indicators from the end user industries along with benefit derived from backward integration

of the associate concern in the paper industry.

The ability of the company to further augment its scale of operations along with an improvement in profitability is

the key rating sensitivity.

Background

Incorporated in the year 1994, SPPL is promoted by Mr Dinesh Kundapur, Mr Sateesh Kadri and Mr Dinesh Hegde,

having an experience of over two decades in the paper industry. SPPL is engaged in the manufacturing of

corrugated boxes and primarily caters to reputed clients in the FMCG industry. SPPL has two manufacturing units

located at Goa and Puducherry and has a combined installed capacity of manufacturing 38,400 metric tonne per

annum. SPPL has two other group concerns viz. M/s Shreeraksha, which is engaged in the trading of kraft paper

and M/s Suraksha Packers, engaged in the manufacturing of corrugated boxes.

The company reported a total operating income of Rs.48.69 crore over a PAT of Rs.1.76 crore in FY14 (Provisional;

refers to the period April 1 to March 31) as against a total operating income of Rs.41.41 over a PAT of Rs.0.39

crore in FY13.

Analyst Contact

Name: Anand Marne

Tel: 020 4000 9016





383

Brief Rationale









In case of partnership concerns, the rating assigned by CARE is based on the capital deployed by the partners and the financial

strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought

in by the partners in addition to the financial performance and other relevant

384

Brief Rationale

October 01, 2014

CARE Assigns ‘CARE B+’ rating to the bank facilities of

Virat Spinners Private Limited Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long-term Bank Facility 21.50 CARE B+ (B Plus)

Assigned

Rating Rationale The rating assigned to the bank facilities of Virat Spinners Private Limited (VIPL) is primarily constrained on account of its nascent stage of operations in competitive and cyclical textile industry, project stabilization risk with pending installation of third machinery. The rating is also constrained on account of its moderate capital structure, volatile raw material prices having dependence on government policies and agro-climatic conditions. However, the rating derives strength from widely experienced promoters in textile industry, presence in textile cluster with easy access to raw material & end users and government support through various incentives. The ability of VIPL to increase its scale of operations post successful commissioning of the remaining debt funded capex and derive the envisaged benefits is the key rating sensitivity. Background Incorporated in October 2010, VIPL was promoted by Mr. Sanjeev Kumar Agarwal and Mr. Vasudev Agarwal with the objective to set up a rotor cotton yarn spinning project for the manufacturing of coarser counts of cotton yarn in Ahmedabad (Gujarat). Their efforts are supported by Mr. Devesh Jhunjhunwala and Mr. Ankit Gadia. The total cost of the project being undertaken by VIPL is Rs.34.50 crore which was proposed to be funded by a mix of term loan of Rs.21.50 crore, unsecured loans of Rs.3.50 crore and equity infusion of Rs.9.50 crore. The company started commercial production in first week of March 2014 with two sets of machineries. Another machine, Autocoro machinery is proposed to be installed by first week of November 2014. Currently, VIPL is running two machineries and approximately Rs.27 crore has already been incurred by February 2014 which was funded through part availment of term loan of Rs.15.80 crore, unsecured loan of Rs.2.09 crore and equity infusion of Rs.9.11 crore. During FY14 (refers to the period April 1 to March 31), VIPL reported a PAT of Rs.0.10 crore on a total operating income (TOI) of Rs.5.32 crore.

Analyst Contact

Name: Mohit Agrawal

Tel: 079-40265612







385

Brief Rationale










factors.

386

Brief Rationale

October 01, 2014

CARE assigns “CARE BB-/CARE A4” ratings to the bank facilities of

Shristi Ispat & Alloys Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 9.25 CARE BB- [Double B Minus] Assigned

Short term Bank Facilities 1.50 CARE A4 [A Four] Assigned


Rating Rationale

The ratings are constrained by small scale of operation, lack of backward integration vis-à-vis volatility in prices of

raw material & finished goods, low profitability margin due to intense competition in the industry, working capital

intensive nature of operation, low capacity utilization, weak financial risk profile and cyclicality associated with the

steel industry. However, the ratings derive strength from SIAL’s experienced promoters, strategic location of the

plant and regular infusion of funds by the promoters.

The ability of the company to optimally utilize its existing facilities, improve operating margins and efficient

working capital management are the key rating sensitivity.

Background

Shristi Ispat and Alloys Ltd. (SIAL), incorporated in 2004, is engaged in manufacturing & selling of TMT Bars and

Rounds, with a capacity of 84,000 MTPA at Bankura, West Bengal. SIAL markets its product in West Bengal and

Assam.

During FY14 (Provisional), SIAL reported PAT of Rs.0.15 crore on a total operating income of Rs.135.39 crore as

compared to nil PAT on a total operating income of Rs.96.90 crore in FY13.

Analyst Contact












387

Brief Rationale

October 01, 2014

CARE assigns ‘CARE B’ rating to the bank facilities of

Palm Heights Private Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Single B) Assigned


Rating Rationale

The rating assigned to the bank facilities of Palm Heights Private Limited (PHP) is primarily constrained by project

execution risk associated with its on-going sole residential project, low booking status and marketability risk. The

rating is further constrained due to high competitive intensity and inherent risks associated with the real estate

industry, including exposure to local demand-supply dynamics.

The rating, however, does factor in the experienced promoters, project preparedness including acquisition of land,

relevant approvals in place and project funding already tied up.

Going forward, the ability of the company to execute the project as per the schedules, along with the timely sale

of the project space at envisaged prices and any change in the regulatory guidelines would be the key rating

sensitivities.

Background

Palm Heights Private Limited (PHP) was incorporated in 2013 and is currently being managed by Mr Daljit Dogra

Singh, Mr Harjinder Singh Rangi and Mr Ankit Sidana. The company is currently developing its residential project

named ‘Palm Heights’ at Dehrabassi, Punjab, on 2.94 acres of land. The project is being developed in the form of

six towers with total 160 flats. The group entity includes DM Associates and Dogra Property Consultants engaged

in the real estate industry and civil construction industry.

Analyst Contact Name: Achin Nirwani Tel: 011- 45333228 Email: [email protected]




388

Brief Rationale



Disclaimer










389

Brief Rationale

October 01, 2014

CARE assigns ‘CARE B’ rating to the bank facilities of

Soneera Jewellery Manufacturers Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 15 CARE B

(Single B) Assigned

Total Facilities 15

Rating Rationale

The rating assigned to the bank facilities of Soneera Jewellery Manufacturers (SJM) is constrained by the limited

experience of the proprietor in the gems and jewellery industry and nascent stage of operations. The rating is

further constrained by the high degree of competition due to the fragmented nature of the industry, risk

associated with fluctuation in gold prices, susceptibility to regulatory changes and constitution of the entity as a

proprietorship firm.

The rating, however, favourably takes into account the professionally qualified team hired by the management of

the firm and location advantage of the manufacturing facility.

Going ahead, the achievement of envisaged income as well as profitability levels and ability to manage raw

material price fluctuation shall be the key rating sensitivities.

Background

Soneera Jewellery Manufacturers (SJM) is a proprietorship concern established in July 2014 by Mr Nitin Bansal and

commenced its commercial operations in July 2014. The firm has set up a manufacturing unit for manufacturing

gold ornaments studded with diamonds, pearls and stones at Manesar, Haryana. The main raw material consists of

gold, diamonds, pearls and stones which is being purchased from government recognized and approved import

houses and banks as well as from open market domestically. The firm will cater to the requirement of wholesalers

and traders located Delhi, Uttar Pradesh, Rajasthan, Haryana and Punjab.







390

Brief Rationale

Disclaimer










391

Brief Rationale

October 01, 2014

CARE assigns ‘CARE B+’ rating to the bank facilities of

Ritu Logistics Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 12.13 CARE B+




at present. The rating may undergo a change in case of withdrawal of the capital or the unsecured loans brought in

by the partners in addition to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Ritu Logistics (RLT) is primarily constrained on account of its financial risk profile marked by thin profit margin, leveraged capital structure and stressed liquidity position. The rating is further constrained on account of competitive nature of the transportation and logistics business with customer concentration risk and the entity’s partnership constitution. The rating, however, derives strength from the experienced partners with established presence of the Ritu Group in the transportation business and its reputed clientele base. The ability of the firm to increase its scale of operations with stable profitability margins and improvement in the solvency position are the key rating sensitivity.

Background

Jodhpur (Rajasthan) based RLT was formed as a partnership concern by Ritu Group in June, 2012. Ritu group is engaged in the transportation services since 1991 and has about 550 carriers/tankers as on June 30, 2014 running in the transportation of oil, lubricants, bitumen & emulsion and commercial vehicles. RLT was promoted with an objective to provide logistic services to commercial vehicle manufacturer i e Truck on Truck (TOT) services and have fleets of 162 vehicles/carriers as on March 31, 2014. In August, 2012, RLT has signed a two years agreement with Ashok Leyland Limited (ALL, rated ‘CARE A+’, ‘CARE A1+’, engaged in the manufacturing of commercial vehicles) for transportation of vehicles manufactured by ALL from its manufacturing unit to various depots and distributors located in all over India. The agreement is further expected to be extended for a period of 2 years. RLT has presence in all over India through its branch offices at Delhi, Mumbai, Pune, Mangalore, Pantnagar, Hazira, Jamnagar, Kandala, Jaipur, Rajkot, Baroda, Nagpur, Ajmer and Beawar. As per provisional results for FY14 (refers to the period April 1 to March 31), RLT has reported a total operating income of Rs.39.45 crore and PAT of Rs.0.47 crore as against TOI of Rs.6.19 crore and net losses of Rs.1.06 crore respectively during FY13 (audited).

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612





Tel:-


392

Brief Rationale







393

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BBB-’ and ‘CARE A3’ to the bank facilities of

Great United Energy Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities – Term Loan

34.50 CARE BBB-

(Triple B Minus) Assigned

Short-term Bank Facilities – Non Fund Based – BG

2.50 CARE A3 (A Three)

Assigned


Rating Rationale

The ratings assigned to the bank facilities of Great United Energy Private Limited derives strength from the

professionally qualified and well-experienced management, long term fixed price contract with ONGC providing

revenue stability and visibility till July 2015 and track record of two years of uninterrupted operation of the vessel

without any accidents/maintenance breakdown.

The ratings are constrained by revenue concentration risk arising from the ownership of one vessel, high age of the

vessel and cyclical nature of the oil and gas exploration industry in turn affecting the offshore industry.

The ability of the company to redeploy the vessel at competitive rates along with its ability to increase its fleet

profile and scale of operations in order to mitigate the revenue concentration risk are the key rating sensitivities.

Background Great United Energy Private Limited (Great United), incorporated in August 2011, was promoted by a group of

professionals with experience in providing offshore vessel services to the oil and gas industry in India. The

company has been set up to provide supply vessel services to the oil and gas offshore industry. The company has

one vessel which is deployed with ONGC on a long term contract of three years ending July 2015. The company is

promoted and headed by Mr Vijay K Sheth who has about 40 years of experience in the Indian shipping industry

mainly in the offshore shipping segment. He was the former vice chairman and managing director of Great

Offshore Ltd and was associated with his family business in Great Eastern Shipping for over three decades.

During FY14 (refers to the period April 1 to March 31), the company had posted total income of Rs.28.98 crore and

a PAT of Rs.9.07 crore as compared with total income of Rs.18.38 crore and PAT of Rs.1.41 crore during FY13.

During Q1FY15, Great United had achieved PAT of Rs.2.65 crore on a total income of Rs.7.22 crore.



394

Brief Rationale

Analyst Contact Name: Arunava Paul Tel: 022-6754 3667 Email: [email protected]





395

Brief Rationale

October 01, 2014

CARE Assigns ‘CARE B+’ and ‘CARE A4’ ratings to the bank facilities of

Agrawal Sponge Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long Term Bank Facilities 15.00 CARE B+ (Single B Plus) Assigned

Short Term Bank Facilities 7.50 CARE A4 (A Four) Assigned


Rating Rationale

The ratings assigned to Agrawal Sponge Limited (ASL) is constrained by small scale of operations & low

profitability, low capacity utilization, lack of backward integration leading to dependence on market &

consequently volatile prices, working capital intensive nature of operations, intense competition due to

fragmented industry and cyclical nature of the iron & steel industry. The ratings however draw strength from

experience of the promoters and strategic location of the plant.

Optimum utilization of the existing facilities, effective management of working capital and ability to manage

volatility in raw-material prices and increase profitability margin going ahead are amongst the key rating

sensitivities.

Background

Incorporated in 2002, Agrawal Sponge Limited (ASL), initial acquired by Singh family in 2007 from Mr. R.D.Gupta, and

further acquired by Mr. Kailash Chand Agrawal in November 2012, is currently involved in manufacturing of Sponge

Iron with an installed capacity of 60,000 MTPA and MS Ingots with an installed capacity of 18,000 MTPA. The

manufacturing facility of the company is located in Siltara Industrial Growth Centre in Raipur, Chhattisgarh. The

company is also engaged into trading of steel products which accounted for 15.39% of sales in FY14 (21.65% in FY13).

ASL is the part of Raipur-based Rashmi Group, which has interests mainly in manufacturing of steel products. The other

major group company include Rashmi Sponge Iron & Power Industries Limited, engaged in manufacturing of sponge

iron and steel ingots.

As per the provisional estimates, in FY14 (refers to the period April 1 to March 31), ASL earned a profit of Rs.0.3 crore

(loss of Rs.1.5 crore in FY13) on a total income of Rs.50.7 crore (Rs.41.0 crore in FY13).

Analyst Contact


Tel # 033-4018 1600

Mobile # 90517 30850





396

Brief Rationale












factors.

397

Brief Rationale

October 01, 2014

CARE Assigns ‘CARE BB’ and ‘CARE A4’ ratings to the bank facilities of

Rashmi Sponge Iron & Power Industries Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long Term Bank Facilities 1.20 CARE BB (Double B) Assigned

Short Term Bank Facilities 18.35 CARE A4 (A Four) Assigned


Rating Rationale

The ratings assigned to Rashmi Sponge Iron & Power Industries Limited (RSIPIL) is constrained by moderate

capacity utilization of its facilities, lack of backward integration leading to dependence on market & consequently

volatile prices, working capital intensive nature of operations, intense competition due to fragmented industry and

cyclical nature of the iron & steel industry. The ratings however draw strength from experience of the promoters,

strategic location of the plant and satisfactory gearing ratios.

Optimum utilization of the existing facilities, effective management of working capital and ability to manage

volatility in raw-material prices and increase profitability margin going ahead are amongst the key rating

sensitivities.

Background

Incorporated in 1995, Rashmi Sponge Iron & Power Industries Limited, (RSIPIL; erstwhile JRG Credits & Holdings

Private Limited and thereafter converted to public company in 2006), acquired by the Agrawal family of Raipur in

2003 is currently involved in manufacturing of Sponge Iron with an installed capacity of 66,000 MTPA and MS

Ingots with an installed capacity of 24,000 MTPA (commercialised in 2006). Further the company has a coal

washery unit with a capacity of 14,40,000 MTPA and captive power plant of 8 MW (commercialised in 2007). The

manufacturing facility of the company is located in Siltara Industrial Growth Centre in Raipur, Chhattisgarh. The

company is also engaged into trading of steel products which accounted for 25.96% of sales in FY14 (29.82% in

FY13).

As per the provisional estimates, in FY14 (refers to the period April 1 to March 31), RSIPIL earned a profit of Rs.1.3

crore (Rs.1.2 crore in FY13) on a total income of Rs.150.4 crore (Rs.134.9 crore in FY13).



398

Brief Rationale

Analyst Contact


Tel # 033-4018 1600

Mobile # 90517 30850













factors.


399

Brief Rationale

October 01, 2014

CARE Assigns ‘CARE B’ rating to the bank facilities of

Sangam Press Private Limited

Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks

Long term Bank Facilities 17.55 CARE B

[Single B] Assigned


Rating Rationale

The rating assigned to the bank facilities of Sangam Press Private Limited (SPPL) is constrained on account of its

modest scale of operations and weak financial profile marked by declining revenues, operational losses and a

leveraged capital structure. The rating also remains constrained owing to project implementation risk for the real

estate division and presence in a competitive real estate market.

The rating, however, derives comfort on account of the long and established track record of the company in the

printing industry, wide experience of the promoters and strategic location of the real estate project.

The ability of the company to execute its real estate project without any time and cost overruns and increase the

booking status are the key rating sensitivities.

Background

Pune-based, Sangam Press Private Limited (SPPL) was incorporated in 1947 and was founded by the Freedom

Fighter, Mr Achyut Patwardhan. Later in 1978, the press was sold out completely to a new management team

comprising of the Shah and Jhaveri family. SPPL is engaged in offset printing for corporate clients, based in

Maharashtra. Printing activities include printing of leaflets, brochures, booklets, advertising material, scratch cards,

manuals and others. The company’s major customers include Bajaj Auto Limited, Sandvik Asia Private Limited,

Skoda Auto India Limited, Cargill India Private Limited, Whirlpool Of India Limited, Bharat Forge Limited, Thermax

Limited, Cummins India Limited, Kirloskar Oil Engines Limited and others.

SPPL has also ventured into the real estate sector and is currently constructing a 11-storeyed residential project,

named as “Sangam Solitaire”, having a total saleable area of 98,985 square feet in Kothrud, Pune. Total cost of the

project is estimated to be Rs.41.55 crore and is expected to be completed by March 2016.

During FY14 (refers to the period April 1 to March 31)[Provisional], SPPL registered net loss of Rs.0.38 crore on a

total operating income of Rs.3.76 crore against net loss of Rs.0.69 crore on a total operating income of Rs.4.80

crore in FY13.



400

Brief Rationale

Analyst Contact Name: Mr Anand Kulkarni Tel: 020-40009000 Email: [email protected]








bank facilities/instruments.

401

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BB-’ and ‘CARE A4’ ratings to the bank facilities of

Jajoo Exim Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Assigned


Rating Rationale

The ratings assigned to the bank facilities of Jajoo Exim Private Limited (JEPL) is primarily constrained on account of

its relatively small scale of operations in the highly competitive and fragmented refractory industry and its weak

financial risk profile marked by thin profitability, high overall gearing and stretched debt coverage indicators. The

ratings, are further, constrained on account of the vulnerability of the company’s profitability to fluctuations in raw

material prices and foreign exchange rates and cyclicality of the steel industry.

The ratings, however, derive strength from the experienced management in the industry and healthy growth in its

scale of operations.

The ability of the company to increase its scale of operations while improving profitability in light of volatile raw

material prices along with an improvement in the solvency position are the key rating sensitivities.

Background

JEPL was initially incorporated in 2005 as ‘Shubh-Mangal Buildhome Private Limited’ promoted by Jaipur-based

(Rajasthan) ‘Sharda’ family. However, in 2008, the present promoter group, Jajoo Chemical group, headed by Mr

Sudhir Jajoo took over the management of the company and the company got its present name, JEPL. Jajoo

Chemical Group has business interest in the trading and manufacturing of ramming mass and different grades of

ferro alloys through Jajoo Exports (JES; incorporated in 1997, rated CARE BB-/ CARE A4) and Jajoo Rashmi

Refractories Private Limited (JRPL; incorporated in 1995, rated CARE BB-/ CARE A4). Furthermore, JRPL have 5%

shareholding in JEPL as on March 31, 2014.

Initially, JEPL was set up to primarily engage in the business of manufacturing of quartz powder, used in the

production of ramming mass which finds its application as lining in furnace. However in FY13 (refers to the period

April 01 to March 31), JEPL added ferro alloys (used in the steel industry as de-oxidant and alloying agent) to its

product profile and started processing various grades of ferro manganese, ferro silicon and Silicon Manganese. The

manufacturing facilities of the company is located at Jaipur with an installed capacity of 10,200 Metric Tonnes Per

Annum (MTPA) for quartz powder and 4,000 MTPA for processing of ferro alloys as on March 31, 2014. The

company caters to the domestic market as well as exports to Europe and Middle East Countries. The export sales

constituted around 88% of the Total Operating Income (TOI) during FY14 (71% in FY13).



402

Brief Rationale

As per the provisional results for FY14, JEPL has reported a total operating income of Rs.23.44 crore (FY13: Rs.5.16

crore), with a PAT of Rs.0.15 crore (FY13: Rs.0.07 crore).

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612













factors.

Tel:-

403

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BB+’ rating to the bank facilities of

RKS Grand Shopping Mall Rating

Facilities Amount

(Rs. crore) Rating

1 Remarks


(Double B Plus ) Assigned



at present. The rating may undergo change in case of the withdrawal of capital or the unsecured loans brought in

by the partners in addition to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of RKS Grand Shopping Mall (RKS) are constrained by its working capital

intensive nature of business, competitive landscape in retail business, geographical concentration risk and

constitution of the entity as a partnership firm with inherent risk of withdrawal of capital and limited access to

funding. The rating, however, derives strength from the promoter’s experience of more than three decades in the

clothing retail industry, increase in the profitability margins & total operating income during FY14 (refers to the

period April 1 to March 31), increasing scale of operation with stabilization of business operations despite the

short track record, moderate capital structure and debt coverage indicators.

The ability of the company to scale up its operations by increasing its presence in other locations through new

showrooms, manage its working capital requirement and sustain profitability margins in a competitive

environment are the key rating sensitivities. The implementation of the proposed project without any cost and

time overruns along with stabilization of operations will also be a key rating sensitivity.

Background

Hyderabad-based RKS Grand Shopping Mall (RKS) was established in the year 2010 as a partnership firm by Mr T

Venkata Ramana Rao and four other partners. RKS is engaged in the retailing of textiles (sarees, suiting & shirting,

dress material, handlooms), ready-made garments (men, ladies and kids wear) and gold & silver (jewelry, articles,

pearls and stones) articles which are sold under the brand name “RKS”. The firm derived 72%-89% of revenue

(during FY12-14) from sale of gold/silver articles and balance from textile/readymade garment division. RKS

operates its business from its registered office (spread across 27,078 sq ft area) located at Kukatpally, Hyderabad,

along with a branch office (spread across 12,700 sq ft area) located at Ameerpet, Hyderabad. RKS procures the

gold and silver from local market and assigns the manufacturing/ designing work to highly trusted manufacturers



404

Brief Rationale

who work under their supervision. The textiles and garments suppliers are based in Surat, Hyderabad, Mumbai,

Rajasthan, Kolkata, Madurai, Kanchi and Tamil Nadu.

During FY14 (provisional), RKS reported a PAT of Rs.2.77 crore on a total operating income of Rs.119.37 crore as

against a PAT of Rs. 1.55 crore on a total operating income of Rs.105.45 crore in FY13.

Analyst Contact

Name: Rajani Tenali Tel: 040-40102030 Mail id: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.









405

Brief Rationale

October 01, 2014

CARE assigns ‘CARE BB’ and ‘CARE A4’ ratings to the bank facilities of

Jindal Green Crop International Private Limited

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(Double B) Assigned

Short term Bank Facilities 25 CARE A4 (A Four)

Assigned

Total Facilities 35

Rating Rationale

The ratings of the bank facilities of Jindal Green Crop International Private Limited (JGCI) are constrained by the

company’s low profitability margins attributable to the trading nature of business and its weak capital structure as

well as debt coverage indicators. The ratings are also constrained by the company’s exposure to volatility in the

prices of traded goods and foreign exchange fluctuation risk. However, the ratings derives comfort from the

experience of the company’s promoters, long track record of operations of the group entities, diversified client

base and healthy product portfolio of traded goods.

Going forward, the ability of the company to scale up its operations while improving the profitability profile and

improvement in its capital structure and debt coverage indicators will remain the key rating sensitivities.

Background

Incorporated in July 2013, Jindal Green Crop International Private Limited (JGCI) is promoted by Mr Dalip Jindal and

Mrs Shaloo Jindal. JGCI imports pulses and sells in the domestic market through a network of wholesale dealers

and brokers. The other group entities SG Polyplast Private Limited (rated: CARE BB-/ CARE A4) and Jindal Agro

International (a proprietorship firm) are also engaged in the similar line of business. The group also supplies to the

Government (for Defence and Public Distribution System in Haryana, Punjab and Himachal) which contributes

about 25% of the combined business of the group.

During FY14 (refers to the period September 01 to March 31), on a total operating income of Rs.126.06 crore, the

company reported a PBILDT and PAT of Rs.1.03 crore and Rs.0.41 crore respectively. Furthermore, during 5MFY15

(provisional; refers to the period April 01 to August 31), the company reported a total operating income of

Rs.132.60 crore.

Analyst Contact

Name: Ajay Dhaka

Tel: 011-45333218





406

Brief Rationale









407

Brief Rationale

October 01, 2014


Bhagwati Kripa Paper Mills Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed


Rating Rationale

The ratings continue to remain constrained on account of the modest scale of operations of Bhagwati Kripa Paper

Mills Private Limited (BKPMPL) along with its financial risk profile marked by moderate profitability margins, and

solvency and liquidity positions. The ratings further remain constrained due to vulnerability of BKPMPL’s margins

to fluctuation in raw material prices as well as foreign exchange rates, and its presence in a highly competitive and

fragmented paper industry.

The ratings, however, continue to derive strength from the vast experience of the promoters in the paper industry

along with its established track record of operations and stable demand indicators from the end user industries,

mainly packaging.

The ability of the company to improve the overall financial risk profile with an improvement in profitability margins

and solvency position are the key rating sensitivities.

Background

BKPMPL was incorporated in August 2004 as a private limited company by Mr Prem Kishore Mehra along with his

family members. The promoters have presence in the packaging industry through their involvement in the group

company, Shivam Products Private Ltd (SPPL) which is engaged in the business of manufacturing of corrugated

boxes since 1999. BKPMPL is engaged in the manufacturing of kraft paper and has its manufacturing facility located

at Jaipur, Rajasthan. It has an installed capacity of 44,000 Metric Tonnes Per Annum (MTPA) as on March 31, 2014.

The company manufactures different varieties of kraft paper ranging from 120 to 250 Grams Per Square Meter

(GSM) and Bursting Factor (BF) up to 28.

As per the provisional results for FY14 (refers to the period April 1 to March 31), BKPMPL has registered a PAT of

Rs.1.11 crore on a Total Operating Income (TOI) of Rs.90.94 crore as against PAT of Rs.1.09 crore on TOI of

Rs.66.42 crore in FY13.

Analyst Contact

Name: Mr Mohit Agrawal

Tel: 079-40265612






408

Brief Rationale







409

Brief Rationale

October 01, 2014


L. M. Cotex Private Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long- term Bank Facilities 13.79 CARE B

(Single B) Reaffirmed


Rating Rationale

The rating assigned to the bank facilities of L. M. Cotex Private Limited (LCPL) continues to remain constrained on

account of its stretched liquidity condition, leveraged capital structure and weak debt coverage indicators as on

March 31, 2014. The rating also continued to remain constrained on account of its presence in a highly competitive

and fragmented industry along with limited value addition and prices and supply for cotton being highly regulated

by the government.

The above constraints far offset the benefits derived from the vast experience of the promoters in the cotton

ginning business, increase in total operating income and improvement in profitability during FY14 (refers to the

period April 1 to March 31).

The ability of LCPL to improve its liquidity and solvency position, increase its scale of operations with the

improvement in profitability is the key rating sensitivity.

Background

Rayagada-based (Odisha) LCPL started its operations as a private limited company in the year 2008. LCPL is

promoted by three directors namely Mr Harish Agarwal, Mr Nitin Agarwal and Mr Pawan Agarwal and is engaged

in the cotton ginning and pressing from cotton seeds. LCPL has manufacturing plant at Gunupur, Odisha with a

total installed capacity of cotton bales of 350 cotton bales per day as on March 31, 2014. Since 2008, the company

was operating from its leased manufacturing plant at Sillod (Madhya Pradesh), however from June 2013; the

company vacated the leased premises and shifted its operations to a new unit at Gunupur, Odisha. The commercial

operations from its new facility began from November 2013.

As per the audited results for FY14, LCPL reported a TOI of Rs.35.57 crore and PAT of Rs.0.00 crore as against a TOI

of Rs.13.92 crore and PAT of Rs.0.06 crore during FY13 (Audited). As per the provisional results for 5MFY15 (refers

to the period April 1 2014 to August 31 2014), LCPL registered a TOI of Rs.13.05 crore.



410

Brief Rationale

Analyst Contact

Name: Nitin Jha

Tel: (079) 40265656




Disclaimer


bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it

to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information







factors.


411

Brief Rationale

October 01, 2014

CARE reaffirms ratings to the bank facilities of

Dina Iron & Steel Ltd Ratings


Ratings1 Remarks

Long-term Bank Facilities 15 CARE BB- (Double B Minus)

Reaffirmed

Short-term Bank Facilities 2.43 (Reduced from 3.93)

CARE A4 (A Four)

Reaffirmed


(Reduced from 18.93)

Rating Rationale

The ratings for the bank facilities of Dina Iron & Steel Ltd (DISL) continues to remain constrained by its relatively

small scale of operation with low profit margins in a highly competitive and fragmented industry, project

implementation risk, susceptibility of operating margin to raw material price volatility, working capital intensive

nature of operations and cyclical nature of the iron & steel industry. The ratings, however, derives strength from

its experienced promoters with long track record of operation and locational advantage.

Going forward, DISL’s ability to improve its scale of operation, profit margins along with its ability to manage the

working capital effectively and successful implementation of the ongoing project and deriving benefit therefrom

will be the key rating sensitivities.

Background

Dina Iron & Steel Ltd (DISL), promoted by one Bhartiya family of Patna, was incorporated in July 1992 as

JM Dina Ispat Ltd. (JMDIL) to set up a manufacturing unit for iron and steel products. In September

1993, JMDIL was rechristened as DISL. However, the business remained dormant for about seven years

and commenced commercial operation since 1999. The company set up its manufacturing facility at

Didarganj in Patna with an installed capacity of 28,000 MTPA of Mild Steel (MS) Billets and 40,000 MTPA

of MS Wire Rods and TMT Bar. DISL uses billets from internal source as raw material for manufacturing

of TMT bar and wire. The company markets its products under the brand name of “Vijay Wire Rods and

TMT Bars” in the state of Bihar and adjoining states.



412

Brief Rationale

The day-to-day affairs of the company are looked after by Mr Sanjay Kumar Bhartiya (aged 43 years and

CMD) with adequate support from Mr Prashant Kumar Bhartiya, (Director and brother of Mr Bhartiya),

and a team of experienced professionals.

During FY14 (refers to the period April 01 to March 31), the company reported a total income of

Rs.103.4 crore (FY13: Rs.86.5 crore) and a PAT of Rs.0.7 crore (FY13: Rs.0.6 crore).

Analyst Contact Name: Avik Podder Tel: (033) 40181640 /40181600 Email: [email protected]












factors.

413

Brief Rationale

October 01, 2014


Rohit Ferro Tech Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 1,361.10 CARE BB-

[Double B Minus] Reaffirmed


(reduced from Rs.473.00 cr) CARE A4 [A Four]

Reaffirmed


Rating Rationale

The ratings are constrained by significant deterioration in financial performance in FY14, highly leveraged capital

structure and stretched working capital requirement leading to debt restructuring, project implementation risk

associated with ongoing project, profitability being susceptible to volatility in raw-material & finished goods prices

and foreign exchange fluctuation risk, and complete dependence of ferro alloys industry on the cyclical steel

sector. However, the ratings derive strength from RFTL’s experienced promoters and wide geographic presence

with diversified client base.

The ability of the company to successfully implement the ongoing capex project within the envisaged cost and

timeline, optimal utilization of existing facilities & improve operating margin, and efficient working capital

management remains the key rating sensitivity.

Background

Rohit Ferro Tech Ltd (RFTL) is a Kolkata-based manufacturer & trader of high carbon ferro chrome & other related

products used in manufacturing of steel (primarily mild, alloy and stainless steel). This apart the company is also

engaged into manufacturing of stainless steel. RFTL’s manufacturing units are located at Bishnupur (West Bengal),

Haldia (West Bengal) and Jajpur (Orissa), with an aggregate installed capacity of 283,755 MTPA for ferro alloys and

100,000 MTPA for stainless steel. The company is in advanced stage of setting up a 67.5 MW coal-based captive

power plant and a 33MVA submerged arc furnace (74,462 MTPA) in Jajpur, Orissa at a cost of Rs.673.6 crore.

During FY14, RFTL reported a net loss of Rs.228.60 crore on a total operating income of Rs.2,495.11 crore as

compared to a PAT of Rs.28.92 crore on a total operating income of Rs.2,192.21 crore in FY13.

Analyst Contact






414

Brief Rationale







415

Brief Rationale

October 01, 2014


Quippo Energy Private Limited Ratings


Ratings1 Remarks

Long-term Bank Facilities (Facility 1)#

47.5

‘CARE AA- (SO)’ [Double A Minus


Reaffirmed

Long-term Bank Facilities (Facility 2)*

4.45

‘CARE A (SO)’ [Single A (Structured Obligation)]

Reaffirmed

Long-term / Short-term Bank Facilities (Facility 3)*

10 ‘CARE A (SO)/CARE A1 (SO)’ [Single A (Structured Obligation) /A One


Reaffirmed

Long-term Bank Facilities (Facility 4)

-

- Withdrawn

Total Facilities 61.95 #backed by put option from Srei Infrastructure Finance Ltd (SIFL); * backed by ‘letter of comfort’ from SIFL

Rating Rationale

The aforesaid rating for the long-term bank facilities (Facility 1) aggregating Rs.47.5 crore is primarily based on the

credit enhancement in the form of ‘Put option’ extended by Srei Infrastructure Finance Ltd (SIFL: Rated CARE AA-

/CARE A1+) for the entire debt servicing obligation (i e payment of interest and/or other charges and principal

repayment) during the full tenure of the facilities.

Furthermore, the aforesaid rating for the long-term bank facilities (Facility 2) aggregating Rs.4.45 crore and long-

term / short-term bank facilities (Facility 3) aggregating Rs.10 crore are primarily based on credit enhancement in

the form of ‘Letter of Comfort’ of SIFL for the entire debt servicing obligation (i e payment of interest and/or other

charges and principal repayment) during the full tenure of the facilities.

The ratings of of SIFL draws strength from the satisfactory track record of the company with ‘Infrastructure Finance

Company’ status from RBI, established experience of the promoter group with prominent position in the

infrastructure financing space, continuing growth in advances, diversified resource mix, satisfactory gearing with

adequate capitalization and moderate asset quality & financial performance. The ratings are however, constrained

by the risk associated with volatility in interest rates, exchange rate risks in respect of foreign currency borrowings,

portfolio concentration risk and also the challenging operating environment in the infrastructure financing space.

The ratings also factor in SIFL’s investment in the group companies, majority of which are in infrastructure space

and are yet to be divested/diluted to yield commensurate returns. Ability of the company to monetize its strategic

investments, improve its asset quality and profitability would remain the key rating sensitivities.

Background

Quippo Energy Private Limited (QEPL), which began operations in 2008, is a part of Quippo group (Promoted by the

Kanoria family of Srei group) having established position in the business of renting of infrastructure equipment

servicing the high growth verticals of Construction, Oil & Gas, Telecom and Energy. Earlier entire shareholding of



416

Brief Rationale

QEPL was owned by Quippo Infrastructure Equipment Ltd (QIEL, holding company of the Quippo group). Pursuant

to major business consolidation scheme decided in January, 2010, QIEL merged with Srei Infrastructure Finance

Limited (SIFL, rated CARE AA-/CARE A1+) with retrospective effect from April 1, 2010. Presently, QEPL is a wholly

owned subsidiary of SIFL.

QEPL provides supplementary equipment for gas based power plants upto 25 MW to its customers on an operating

lease basis. These equipment improve overall thermal efficiency of power plants due to ‘cogeneration’.

QEPL reported a loss of Rs.12.40 crore on a total operating income of Rs.25.48 crore in FY14 (refers to the period

April 1 to March 31) as against a loss of Rs.6.94 crore on a total operating income of Rs.36.57 crore in FY13.

Analyst Contact

Name: Ayush Poddar

Tel: 033-4018 1637











417

Brief Rationale

October 01, 2014


Kota Dall Mill Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 20 CARE BBB-


Short term Bank Facilities 105 CARE A3 (A Three)

Reaffirmed


The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the

firm at present. The ratings may undergo change in the case of withdrawal of the capital or the unsecured loans

brought in by the partners in addition to the financial performance and other relevant factors.

Rating Rationale

The ratings of Kota Dall Mill (KDM) continue to derive strength from the vast business experience and

resourcefulness of its promoters, established operations along with strong association with Rajasthan and Gujarat

government for their nutritional programs and diversified revenue stream. The ratings also favourable factor in

receipt of fresh contract from Jharkhand Government for supply to its nutritional program and comfortable capital

structure and debt coverage indicators.

The ratings continue to be constrained by the risk of decentralisation, tender driven nature of its energy food

business having fixed sales price contracts with no price escalation clause, constitution as a partnership firm

limiting financial flexibility along with inherent risk of withdrawal of the capital, low bargaining power and low

value addition resulting in modest profitability margins.

The ability of KDM to increase its scale of operations with an improvement in its profitability coupled with efficient

management of its working capital requirements as well as maintaining capital structure and debt coverage

indicators remains the key rating sensitivity.

Background

Kota-based (Rajasthan) KDM was formed as a proprietorship firm in 1984 and later in 1996 the

constitution was changed to partnership. Current operations of KDM are managed by Mr Ajay

Agrawal and Mr Shambhu Agrawal having 30% share each in the partnership. It is an ISO

9001:2000 firm engaged in the production of wheat flour (atta, maida and sooji) which it sells

under the brand ‘Swastik’. In 2002 KDM started energy foods division, a health food rich in



418

Brief Rationale

proteins which is primarily supplied to Rajasthan and Gujarat state governments for their

nutrition programmes. Furthermore, in June 2014, the firm also signed an agreement with

Jharkhand state government for supply of energy dense foods for its nutrition programmes.

KDM’s manufacturing units are located in Kota, Rajasthan with a total wheat processing

capacity of 2 lakh MTPA.

During FY14 (refers to the period April 1 to March 31), KDM reported a total operating income of Rs.642.12 crore

(FY13: Rs.736.40 crore) and a PAT of Rs.9.15 crore (FY13: Rs.13.88 crore).

Analyst Contact

Name: Harsh Raj Sankhla Tel: 0141-4020213/214 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.









419

Brief Rationale

October 01, 2014

CARE reaffirms the ratings assigned to the various bank facilities and instruments of L&T FINCORP LTD.

Ratings

Facilities / Instruments Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 2,650 (reduced

from 3,150)


Reaffirmed

NCDs 2,300 (enhanced

from 1,800)


Reaffirmed

Ratings Outstanding

Facilities / Instruments Amount

(Rs. crore) Ratings Remarks

Short-term Debt 1,000 CARE A1+ (A One Plus)

Reaffirmed

Rating Rationale

The ratings factor in the strong parentage of L&T Fincorp Ltd by virtue of the fact that L&T Finance Holding Limited

(L&TFHL), the flagship financial services business holding company of the L&T group, holds 100% stake in it. By

virtue of the strong parentage, L&T FinCorp benefits from group synergies in the form of business support from

L&T ecosystem, L&T brand identity, integrated treasury and capital, managerial & operational support. Moreover,

L&T FinCorp board of directors and senior management comprises of senior executives from the L&T group. The

rating is also supported by L&T FinCorp’s comfortable capital adequacy. The rating is, however, constrained by the

company’s moderate asset quality. Continued support from its parent, capital adequacy, asset quality and

profitability of the portfolio are the key rating sensitivities.

Background

The company was originally incorporated as L&T - Samsung Telecom Limited on May 21, 1997. Consequently, the

name of the company was changed to ‘India Infrastructure Developers Limited’. IIDL got a fresh certificate of

incorporation dated November 6, 1998 and is registered with the RBI as an Non-Deposit taking Non Banking

Finance Company (NBFC-ND). The name of the company was changed to ‘L&T FinCorp Ltd’ with effect from

February 24, 2012. L&T FinCorp is a wholly-owned subsidiary of L&T Finance Holdings Ltd (L&TFHL) (erstwhile L&T

Capital Holdings Ltd (L&TCH)) which is the flagship holding company of the financial services business of the L&T

group. L&T is the ultimate parent of L&T FinCorp.



420

Brief Rationale

L&T FinCorp reported Profit After Tax (PAT) of Rs.58 crore on total income of Rs.378 crore in FY14 as compared

with Rs.32 crore on total income of Rs.174 crore in FY13. The company reported PAT of Rs.22 crore on total

income of Rs.127 crore in Q1FY15.

Analyst Contact

Name: Vishal Sanghavi

Tel: +91-22-67543430













factors.

421

Brief Rationale

October 01, 2014

CARE reaffirms the rating assigned to the commercial paper issue of

Sylvanus Properties Ltd

Rating

Instruments Amount

(Rs. crore) Ratings

1 Remarks

Commercial Paper (CP) Issue 50 CARE A1+ (SO)

[Single A One Plus (Structured Obligation)] Reaffirmed

Total 50

Rating Rationale

The rating of the commercial paper of Sylvanus Properties Limited is based on the credit enhancement in the form

of unconditional and irrevocable corporate guarantee provided by the holding company, Indiabulls Real Estate

Limited (IBREL, rated CARE A+/ CARE A1+) and an undertaking by the management stating that the company would

maintain cash and cash equivalents and undrawn facility limits in the company to the extent of 60% of the amount

of CP issued during the tenure of the CP.

The rating continues to derive strength from the track record of the management to execute and mobilize funds

for the projects, IBREL’s recognized brand name, moderate financial leverage, availability of sizeable land bank and

healthy booking resulting in comfortable revenue visibility. Furthermore, comfort can be drawn from the promoter

group’s financial support, if need be.

The ratings, however, continue to factor in IBREL’s high exposure to premium housing segment which is

susceptible to economic slowdown, project execution risk, significant development plans primarily dependent on

customer advances and the inherent cyclical nature of the real estate industry.

The ability of the company to manage the timely completion of the projects along with maintaining adequate

liquidity profile are the key rating sensitivities.

Background

Sylvanus Properties Limited (SPL, a subsidiary of IBREL), incorporated on June 25, 2006, is developing an integrated

township-Indiabulls Golf City on 110 acres of land in Savroli, Raigad. This project will have an integrated 18 hole

golf course. The Golf Course will be designed by world famous golf course planner Mr. Phil Ryan. The project

execution is divided in three phases and has been launched for sale in July 2012. The Golf City will offer spacious

apartments overlooking the golf course and Western Ghats with a choice of – 2 BHK, 3 BHK, 4 BHK and Villas. The

Land for the project has been acquired from various parties and fully paid. SPL has received non-agricultural land

approval in November 28, 2011 and the project construction commenced in Q1FY13.



422

Brief Rationale

The total cost of the project is Rs.1,256 crore and is projected to be financed through debt of Rs.375 crore, Equity

of Rs.10 crore and balance through customer advances.

Analyst Contact

Name: Sharmila Jain

Tel: 022-67543638













factors.


423

Brief Rationale

October 01, 2014


NHC Foods Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 2.40) CARE BB+

[Double B Plus]

Reaffirmed



CARE A4+

(A Four Plus)

Reaffirmed


Rating Rationale

The ratings continue to be constrained by the moderate financial risk profile of NHC Foods Limited (NFL)

marked by low profitability margins, low capitalization, moderately leveraged capital structure and weak

debt coverage indicators. NFL’s presence in the highly competitive industry and exposure to fluctuation

in forex rates further constrain the rating.

The ratings, however, continue to favourably take into consideration the extensive experience of the

promoters, diversified client base and growing scale of operations of the company.

NFL’s ability to increase its scale of operations along with the improvement in profitability margins

amidst intense competition would remain the key rating sensitivities.

Background

Mumbai-based (Maharashtra) NHC Foods Limited (NFL; erstwhile Midpoint Software and Electro

Systems Limited), promoted by Mr Apoorva Shah, is engaged in trading and processing of agriculture

commodities (which includes food spices, spice powder, oil seeds, processed food items and other

agricultural products). NFL also offers different variants of basic and blended spices in the domestic

markets of Maharashtra, Gujarat and Goa under the brand name of ‘NHC SAAZ’.

The company is primarily an export oriented unit, with exports (to Israel, Singapore, South Africa, USA,

Europe, Brazil, China, Malaysia and Indonesia) contributing more than 68% of the total income during

last three years ended FY14 (refers to the period April 01 to March 31).



424

Brief Rationale

During FY14, NFL reported total operating income of Rs.143.30 crore (up by 4.67% vis-à-vis FY13) and

PAT of Rs.1.55 crore (down by 3.73% vis-à-vis FY13). Further as per provisional Q1FY15, the company

has posted total operating income of Rs.35.89 crore and PAT of Rs.0.51 crore.







425

Brief Rationale

October 01, 2014


TAG Offshore Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 675.08 crore (reduced from Rs. 680.60 crore)

CARE A [Single A] Reaffirmed

Short term Bank Facilities 40.00 (enhanced from

35.00 Crore) CARE A1 [A One] Reaffirmed


Rating Rationale

The ratings continue to derive strength from TOL’s experienced and professionally qualified management,

consistent increase in its scale of operations, its long-standing business relationship with Oil and Natural Gas

Corporation (ONGC), Jawaharlal Nehru Port Trust (JNPT) and Kandla Port Trust (KPT), deployment of majority of its

vessels through long-term contract providing revenue visibility and good track record in terms of contract

renewal/extensions.

However, the ratings continue to be constrained by highly geared capital structure due to high capital intensity of

business, vulnerability of profitability to timing mismatches between asset acquisition and deployment, cyclical

nature of the oil and gas exploration industry in turn affecting the offshore industry and shortage of skilled

manpower in the industry.

The ability of TOL to redeploy the vessels going off-contract in the near future to generate the envisaged income

and improve the capital structure going forward are the key rating sensitivities.

Background TOL, incorporated in 2003, was set up to provide marine support services to ports and terminals and the offshore

sector, by acquiring three offshore vessels from Essar Shipping Ports and Logistics Ltd. (ESPLL) [the erstwhile Essar

Shipping Limited (ESL)]. As on August 31st, 2014, the company was managed by a three-member Board of

Directors and owned 19 vessels.



426

Brief Rationale

During FY14 (refers to period April 1st to March 31st), TOL posted net profit of Rs.49.72 crore on a total income of

Rs.261.20 crore as against a net profit of Rs.35.77 crore on a total income of Rs.196.86 crore in FY13. During

Q1FY15, the company posted a PBT of Rs.15.88 crore on a total income of Rs.69.03 crore.

Analyst Contact Name: Arunava Paul Tel: 022-6754 3667 Email: [email protected]





427

Brief Rationale

October 01, 2014


Smita Conductors Ltd.

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 22 CARE A (Single A) Reaffirmed

Short-term Bank Facilities 318 CARE A1 (A One) Reaffirmed


Rating Rationale

The ratings continue to factor strong debt protection metrics of the Smita Conductors Ltd (SCL) in FY14 (refers to

the period April 1 to March 31), coupled with presence of liquid investments leading to higher financial flexibility.

Furthermore, the ratings continue to derive strength from the promoter’s extensive industry experience,

established track record in the conductor business, robust financial profile marked by efficient operating cycle,

favourable capital structure and positive outlook for the conductor industry.

However, the ratings are constrained by SCL’s relatively small scale of operations, concentration risk and

competition from the established players in the conductor industry.

The ability of SCL to scale up operations, while maintaining relatively higher profit margins in the increasingly

competitive environment and diversify its customer and supplier base are the key rating sensitivities.

Background

Established by Mr Bharat Taparia, Smita Conductors Ltd (SCL) was incorporated in 1971 by taking over Ghaziabad

Works from Hindustan Brown Boveri. In 1979, SCL took over Vithalwadi Works (conductor business) from Apar

Industries Ltd. In 2004, the company discontinued operations at Vithalwadi and set up a new unit at Silvassa.

Currently, SCL has two manufacturing units at Ghaziabad and Silvassa.

SCL is engaged in the manufacturing of All Aluminum Conductor (AAC) and Aluminum Conductor Steel Reinforced

(ACSR), and the installed capacity at both its units is 90,000 Metric Tons (MT) as on March 31, 2014.

On an operating income of Rs.164.33 crore, SCL booked after-tax profit of Rs.29.61 crore in FY14. For Q1FY15, the

company reported income from operations of Rs.12.91 crore.

Analyst Contact

Name: Ashvini Patil

Tel: 022-67543431







428

Brief Rationale







429

Brief Rationale

October 01, 2014


Oil And Natural Gas Corporation Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings1 Remarks

Long-term Bank Facilities 500 CARE AAA (Triple A) Reaffirmed

Long/Short-term Bank

Facilities

9,500 CARE AAA (Triple A) /

CARE A1+ ( A One Plus)

Reaffirmed


Rating Rationale

The rating takes into consideration the majority ownership by the Government of India (GoI) and strategic

importance of the company to GoI, experienced and professional management, long track record of operations in

the Exploration & Production (E&P) industry with dominant position in the domestic industry, presence across the

hydrocarbon value chain, its robust infrastructure and proven technical capabilities and strong financial risk profile.

Going forward, the ability of the company to effectively mitigate the risks inherent in the E&P industry, effective

replacement of its diminishing reserves and the regulatory environment surrounding the oil and gas industry

would be the key rating sensitivities.

Background

ONGC is India’s largest Exploration and Production (E&P) company and is present across the hydrocarbon value

chain. The company undertakes exploration and production activities in 16 other countries through its wholly-

owned subsidiary ONGC Videsh Limited (OVL). Also, it has integrated downstream activities in India with 71.63%

equity stake as on March 31st, 2014 in Mangalore Refinery & Petrochemicals Ltd (MRPL)’s 15 million tonnes per

annum (MMTPA) refinery.

The company has maximum number of Exploration Licenses in India, including licenses secured through

competitive NELP rounds. As on 1st July 2014, the company has 12 nomination blocks and is presently operating



430

Brief Rationale

56 NELP blocks covering a total area of 200,370 sq. km. Besides that ONGC has 2 Pre-NELP blocks covering an area

of 1,996 sq. km and 4 CBM blocks covering an area of 875 sq. km. In addition, ONGC has participative interest in 10

NELP blocks awarded under various NELP rounds wherein other consortia partners are the operators.

On a standalone basis, ONGC reported a PAT of Rs.22,095 crore on the total operating income of

Rs.87,797 crore in FY14 (refers to the period April 01 to March 31), as against a PAT of Rs.20,926 crore

on the total operating income of Rs.87,179 crore during FY13.

On a consolidated basis, ONGC reported a PAT of Rs.26,653 crore on the total operating income of

Rs.178,205 crore in FY14, as against a PAT of Rs.23,990 crore on the total operating income of

Rs.166,258 crore during FY13.

Analyst Contact

Name: Manek Narang

Tel: 011-45333233










431

Brief Rationale

October 01, 2014


Ajay Synthetics Private Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities 8.50 CARE BB-


Rating Rationale

The rating continues to remain constrained on account of weak financial risk profile of Ajay Synthetics Private Limited (ASPL) marked by low profitability margins, weak solvency position and stressed liquidity profile. The rating is further constrained by ASPL’s presence in the highly competitive textile industry, its limited presence in the textile value chain and profits vulnerable to volatility associated with raw material prices. The rating, however, continues to take comfort from the vast experience of the promoters in the textile industry, long track record of operations, its established distribution network and its presence in a textile cluster in the Bhilwara region. The ability of company to increase in the scale of operations, improve its profit margins and solvency position with better working capital management are the key rating sensitivities.

Background

ASPL, incorporated in 1987, is promoted by the Kabra family and belongs to the Ajay group of industries based out of Bhilwara (Rajasthan). The group is engaged in the business of manufacturing of finished synthetic fabrics from polyester yarn since 1987 and group concerns include Ajay India Limited (AIL, established in 1996, rated CARE BB-/CARE A4), Shubh Fabrics Limited (SFL, established in 1994, rated CARE BB-) and Ajay Syntex Limited (ASL, established in 2006). The group also does processing of grey fabrics through Rolex Processor Private Limited (RPPL, rated CARE B and CARE A4). ASPL is engaged in the business of manufacturing of synthetics grey fabrics from polyester yarn and gets the processing work done on grey fabrics from other processors on job work basis. Furthermore, it is also engaged in the trading of grey and finished fabrics. The manufacturing facility of the company is located in Bhilwara, Rajasthan and has an installed capacity of 65 Lakh Meters Per Annum (LMPA) (58 looms) as on March 31, 2014. The company sells fabrics in domestic market as well as export to Gulf countries. As per provisional results for FY14 (refers to the period April 1 to March 31), ASPL has reported a total operating income of Rs.44.89 crore as against Rs.40.36 crore during FY13 and PAT of Rs.0.16 crore during FY14 as against Rs.0.16 crore during FY13.

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612





Tel:-


432

Brief Rationale










factors.

433

Brief Rationale

October 01, 2014


Jet Granito Private Limited Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long -term Bank Facilities 17.66

(reduced from Rs.22.77) CARE B+ (B Plus)

Re-affirmed


Re-affirmed

Total 22.18

Rating Rationale

The ratings assigned to the bank facilities of Jet Granito Private Limited (JGPL) continue to remain constrained on

account of the modest scale of operations in the competitive tile industry with linkages to the real estate sector.

The ratings are further constrained by its weak liquidity position and susceptibility of margins to fluctuation in raw

material and fuel prices.

The rating, however, continues to draw strength from the experience of the promoters and advantage of location

being close to the ceramic tile hub of Gujarat and comfortable capital structure and debt coverage indicators. The

ratings factor in the increase in TOI and improvement in the capital structure during FY14 (refers to the period

April 1 to March 31).

The ability of JGPL to increase the scale of operations along with an improvement in profitability and liquidity

position and better working capital management are the key rating sensitivities.

Background

Incorporated in March 2006, Morbi-based (Gujarat) Jet Granito Private Limited (JGPL) is engaged in the

manufacturing of vitrified tiles of 600mm x 600mm (24”X24”), 800mm x 800mm (32”X32”) and 1000mm x

1000mm (40”X40”) sizes and ceramic wall and floor tiles. It commenced its operations in 2008. JGPL is ISO-

9001:2008 certified and JGPL’s manufacturing facility is located at Morbi in Rajkot district which is the ceramic tile

manufacturing hub of Gujarat. Over the years, JGPL has increased the installed manufacturing capacity from

35,000 MTPA till 2009 to 75,000 Metric Tonnes per Annum (MTPA) of vitrified tiles as on March 31, 2014.

As per the provisional results for FY14, JGPL reported a net profit of Rs.0.72 crore on a Total Operating Income

(TOI) of Rs.70.88 crore as against TOI of Rs.64.63 crore and net profit of Rs.0.67 crore during FY13. During 5MFY15,

JGPL achieved the turnover of Rs.35.75 crore.



434

Brief Rationale

Analyst Contact

Name: Mr Nitin Jha

Tel: 079-4026 5656













factors.


435

Brief Rationale

October 01, 2014

CARE reaffirms/assigns ratings to the bank facilities of

AG8 Ventures Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from Rs. 59.86 crore) CARE BB



Assigned


Rating Rationale

The ratings continue to be constrained by the modest scale of operations of AG8 Ventures Limited (AVL), its high

leverage, moderate profitability, project execution risk associated with its large-size ongoing real estate projects

and high reliance on customer advances. The ratings are further constrained by its presence in a highly competitive

and cyclical real estate industry.

The ratings, however, continue to draw strength from the vast experience of the promoters in executing various

real estate projects in Bhopal and healthy booking status of its ongoing projects.

The ability of AVL to complete its ongoing real estate projects within the envisaged time and cost parameters,

timely receipt of booking advances and sale of units at the envisaged price; and increase in its scale of operations

through greater geographical diversification are the key rating sensitivities.

Background

Originally incorporated in 1997 as Aakriti Dwellings Pvt Ltd, AVL is the flagship company of the Bhopal-based

“Aakriti Group”, engaged in the development of residential as well as commercial properties around Bhopal region.

Presently, AVL is executing three integrated townships in Bhopal with total saleable are of 50.38 lakh square feet

(lsft) at a total project cost of Rs.841 crore.

During FY14 (Provisional; refers to the period April 01 to March 31), AVL reported a PAT of Rs.5.48 crore on a total

operating income (TOI) of Rs.103.74 crore as against a PAT of Rs.7 crore on a TOI of Rs.104.44 crore in FY13.

Analyst Contact

Name: Kalpesh Patel

Tel: 079-40265611

Mobile: 9909026322




436

Brief Rationale












factors.

437

Brief Rationale

October 01, 2014


Kamdar & Associates Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed


In case of partnership concerns, the rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale For arriving at the ratings of the bank facilities of Kamdar & Associates (KA), CARE has considered the combined financial and business profile of three entities, namely, KA, Panchvati Ship Breakers (PSB; rated ‘CARE BBB-/CARE A3’) and Sagar Laxmi Ship Breakers (SLSB; rated ‘CARE BBB-/CARE A3’), collectively known as Kamdar group (KG). All the three entities of the Kamdar group have similar business profiles with operational and business linkages. The ratings continue to factor in the extensive experience of the partners in ship-breaking industry and KG’s presence at Alang, being one of the largest ship-breaking yards of the world. The ratings also factor its comfortable liquidity, low leverage and stable outlook for the ship-breaking industry. The ratings, however, continue to remain constrained on account of low and declining profitability of the group, moderate debt coverage indicators and risk from adverse movement in scrap prices/foreign exchange rates, apart from exposure to regulatory and environmental hazards risk. Increase in the scale of operations of KG along with improvement in its profitability while maintaining its comfortable liquidity in the backdrop of volatile scrap prices and foreign exchange rates are the key rating sensitivities. This apart, any significant exposure to entities other than those in the Kamdar group would also be crucial from the credit perspective. Background Constituted in 1984 as a partnership firm, KA is a partnership firm promoted by Mr Harshad Padia, Mr Rajubhai Padia, Mr Mishrilal Shah & Mrs Sangita Ben Rajesh Shah. The firm is engaged in ship-breaking activity at a plot having frontage of 80 meters in the Alang – Sosiya belt of Bhavnagar region in Gujarat. The plot is leased by Gujarat Maritime Board (GMB) for a period of one year and on completion of the tenure of agreement, the lease is normally renewed at prevailing lease rental rates. The partner family also has two other group entities in the same line of business - PSB and SLSB. During FY14, on a combined level, Kamdar group reported a PAT of Rs.1.46 crore on a total operating income of Rs.212.45 crore as against a PAT of Rs.2.70 crore on a total operating income of Rs.289.09 crore during FY13. Furthermore, on a standalone basis, KA reported a PAT of Rs.0.01 crore on a total operating income of Rs.61.55 crore as per the audited results of FY14 as against a PAT of Rs.0.83 crore on a total operating income of Rs.66.30 crore in FY13.



438

Brief Rationale

Analyst Contact

Name: Kunal B. Shah

Tel : 079-4026 5681











439

Brief Rationale

October 01, 2014


Sagar Laxmi Ship Breakers Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed


In case of partnership concerns, the rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale

For arriving at the ratings of the bank facilities of Sagar Laxmi Ship Breakers (SLSB), CARE has considered the combined financial and business profile of three entities, namely, SLSB, Panchvati Ship Breakers (PSB; rated ‘CARE BBB-/CARE A3’) and Kamdar & Associates (KA; rated ‘CARE BBB-/CARE A3’), collectively known as Kamdar group (KG). All the three entities of the Kamdar group have similar business profiles with operational and business linkages. The ratings continue to factor in the extensive experience of the partners in ship-breaking industry and KG’s presence at Alang, being one of the largest ship-breaking yards of the world. The ratings also factor its comfortable liquidity, low leverage and stable outlook for the ship-breaking industry. The ratings, however, continue to remain constrained on account of low and declining profitability of the group, moderate debt coverage indicators and risk from adverse movement in scrap prices/foreign exchange rates, apart from exposure to regulatory and environmental hazards risk. Increase in the scale of operations of KG along with improvement in its profitability while maintaining its comfortable liquidity in the backdrop of volatile scrap prices and foreign exchange rates are the key rating sensitivities. This apart, any significant exposure to entities other than those in the Kamdar group would also be crucial from the credit perspective. Background

SLSB is a partnership firm incorporated by Mr Amit Bharat Kumar Padia and Shivlalbhai Jerambhai Padia (HUF) in 2002. The firm is engaged in the ship-breaking business in the Alang – Sosiya belt of Bhavnagar region in Gujarat with a plot size of 80 meters. The plot is leased by Gujarat Maritime Board (GMB) for a period of one year and on completion of the tenure of agreement, the lease is renewed at prevailing lease rental rates. The partner family also has two other group entities in the same line of business - PSB and KA. During FY14, on a combined level, Kamdar group reported a PAT of Rs.1.46 crore on a total operating income of Rs.212.45 crore as against a PAT of Rs.2.70 crore on a total operating income of Rs.289.09 crore during FY13. Furthermore, on a standalone basis, SLSB reported a PAT of Rs.0.67 crore on a total operating income of Rs.97.09 crore as per the audited results of FY14 as against a PAT of Rs.0.76 crore on a total operating income of Rs.120.99 crore in FY13.



440

Brief Rationale

Analyst Contact

Name: Kunal B. Shah

Tel : 079-4026 5681









bank facilities/instruments


441

Brief Rationale

October 01, 2014


Panchvati Ship Breakers Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks




Reaffirmed


In case of partnership concerns, the rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors.

Rating Rationale For arriving at the ratings of the bank facilities of Panchvati Ship Breakers (PSB), CARE has considered the combined financial and business profile of three entities, namely, PSB, Kamdar & Associates (KA; rated ‘CARE BBB-/CARE A3’) and Sagar Laxmi Ship Breakers (SLSB; rated ‘CARE BBB-/CARE A3’), collectively known as Kamdar group (KG). All the three entities of the Kamdar group have similar business profiles with operational and business linkages. The ratings continue to factor in the extensive experience of the partners in ship-breaking industry and KG’s presence at Alang, being one of the largest ship-breaking yards of the world. The ratings also factor its comfortable liquidity, low leverage and stable outlook for the ship-breaking industry. The ratings, however, continue to remain constrained on account of low and declining profitability of the group, moderate debt coverage indicators and risk from adverse movement in scrap prices/foreign exchange rates, apart from exposure to regulatory and environmental hazards risk. Increase in the scale of operations of KG along with improvement in its profitability while maintaining its comfortable liquidity in the backdrop of volatile scrap prices and foreign exchange rates are the key rating sensitivities. This apart, any significant exposure to entities other than those in the Kamdar group would also be crucial from the credit perspective. Background

Established in 2000 as a partnership firm, PSB is promoted by Mr Ramesh Kumar S Padia and Mr Birjubhai B Padia. The firm is engaged in ship-breaking activity at a plot having frontage of 71 meter in the Alang – Sosiya belt of the Bhavnagar region in Gujarat. The plot is leased by Gujarat Maritime Board (GMB) for a period of one year and on completion of the tenure of agreement, the lease is renewed at prevailing lease rental rates. The partner family also has two other group entities in the same line of business - KA and SLSB. During FY14, on a combined level, Kamdar group reported a PAT of Rs.1.46 crore on a total operating income of Rs.212.45 crore as against a PAT of Rs.2.70 crore on a total operating income of Rs.289.09 crore during FY13.



442

Brief Rationale

Furthermore, on a standalone basis, PSB reported a PAT of Rs.0.77 crore on a total operating income of Rs.53.81 crore as per the audited results of FY14 as against a PAT of Rs.1.11 crore on a total operating income of Rs.101.80 crore in FY13.

Analyst Contact Name: Kunal B. Shah Tel : 079-4026 5681 Email: [email protected]










443

Brief Rationale

October 01, 2014


Jash Engineering Limited

Ratings


Ratings1 Remarks




Reaffirmed



CARE A2 (A Two)

Reaffirmed

Long term / Short term Bank Facilities

25.00

CARE BBB+ / CARE A2 (Triple B Plus / A Two)

Assigned

Total Facilities 27

Rating Rationale

The ratings continue to derive strength from the vast experience of the promoters of Jash Engineering Limited

(JEL); along-with its established track record of operations in manufacturing of equipments used in water/waste

water management; supported by technical know-how through collaborations with various global manufacturers

and diversified clientele. The ratings continue to draw comfort from the growth in scale of operations along-with

healthy profitability margins, comfortable leverage and adequate debt coverage indicators.

The ratings, however, continue to be constrained by its moderate scale of operations, susceptibility of margins to

volatility in raw material prices and foreign exchange rate fluctuations, working capital intensive operations and its

presence in an inherently competitive industry.

JEL’s ability to increase its scale of operations by leveraging upon the technology and wider market access

expected from its planned acquisition of MAHR Maschinenbau, Austria (MAHR), while maintaining its healthy

profitability margins and comfortable capital structure would be the key rating sensitivities.

Background

Indore-based, Jash group was founded in 1973 by Mr Jashbhai Patel. The group is engaged in manufacturing of

varied engineering products for water & waste water industry and bulk solids handling equipment (for cement,

paper, fertilizers, chemicals, etc). JEL, the flagship company of the group, is an ISO-9001:2008 company which

manufactures water control gates, knife gate valves, fine and coarse screening equipment, bulk solids handling

valves and large sized cast iron (CI) castings. JEL operates out of three manufacturing units located at Sanwar Road,

Pithampur, and at Bardari in Indore region, Madhya Pradesh, India. JEL has ability to manufacture customized

products according to customers’ requirements along-with standardized products like gates, screens and valves.

1Complete definition of the ratings assigned is available at www.careratings.com and other CARE publications.


444

Brief Rationale

During FY12 (refers to the period April 1 to March 31), JEL acquired 100% shareholding of Chennai-based Shivpad

Engineers Pvt Ltd (SEPL). SEPL designs & manufactures clariflocculators, degritters etc. which are used in the water

treatment, waste water treatment and sewage treatment plants. During FY13, JEL received private equity (PE)

investment of Rs.22.75 crore from Pragati India Fund (PIF), an India-focused PE fund. PIF’s principal investors are

two Development Finance Institutions (DFIs): IFC, the investment arm of the World Bank, and CDC of UK. During

FY15, JEL plans to acquire 100% stake in MAHR, Austria, to gain access to its technology and entry in markets

where MAHR has established its presence over the years (especially in the South East and Far East Asian markets).

During FY14, JEL reported a PAT of Rs.8.02 crore on a Total Operating Income (TOI) of Rs.105.95 crore as against a

PAT of Rs.2.79 crore on a TOI of Rs.76.65 crore during FY13. As per the provisional results for Q1FY15, JEL reported

net sales of Rs.12.18 crore.

Analyst Contact Name: Kalpesh Patel Tel: 079-40265611 Email: [email protected]









445

Brief Rationale

October 01, 2014


National Engineering Industries Ltd

Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks


(enhanced from 309.15) CARE AA- (Double A minus) Reaffirmed


(enhanced from 470.0) CARE A1+ (A One plus) Reaffirmed


Instruments

Short-term Debt (inc.CP) 155.0#

(enhanced from 145.0) CARE A1+ (A One plus ) Reaffirmed

Short-term Debt (inc.CP) 45.0*

(enhanced from Rs.30.0 ) CARE A1+ (A One plus ) Reaffirmed

*The aggregate of CP/STD and other working capital borrowings shall be within the sanctioned fund

based working capital limits # by earmarking fund based bank limit

Rating Rationale

The ratings continue to draw strength from long & satisfactory track record of NEIL and rich experience of its

promoters, strong presence in the domestic bearing industry with established brand, strong technical tie-ups with

internationally reputed bearing majors, diversified user segments and sustained comfortable financial position.

The ratings also factor in capital-intensive nature of business, exposure in group companies and increasing

competition due to cheaper imports. The ratings are further accentuated by volatility in input price and foreign

exchange fluctuation risk.

Ability of the company to increase its total revenue & profit level amidst rising input costs and future prospects of

the automobile industry will remain the key rating sensitivities.

Background

National Engineering Industries Ltd (NEIL), belonging to the G.P. - C. K. Birla group, and incorporated in 1946, was

promoted by the late Mr. B.M. Birla. The company, pioneer in the field of bearing manufacturing in India, is

engaged in manufacturing of various types of ball & roller bearings with its three plants being located at Jaipur &

Newai (Rajasthan) and Manesar (Gurgaon, Haryana). The present aggregate installed capacity of ball & roller

bearing of NEIL is 98.9 mn. nos. per annum. This apart, the company is also engaged in manufacturing of rubber

moulded & extruded goods, agency business including technical & consultancy services.



446

Brief Rationale

Out of total operating income of Rs.1353.8 crore (P.Y. Rs. 1221 crore), NEIL earned a PAT of Rs.88.5 crore (P.Y.

Rs.102.8 crore) in FY14. During the quarter ended June 30, 2014 (Q1FY15), NEIL achieved a PAT of Rs.16.6 crore on


Analyst Contact


Tel # 033 4018 1609

Mobile # 9051730850













factors.

447

Brief Rationale

October 01, 2014

CARE revises ratings assigned to Bank Facilities/Instruments of

Alok Industries Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long term Bank Facilities - Term loan 10182.30 CARE BBB-

(Triple B Minus) Revised from

CARE BBB (Triple B)

Long term Bank Facilities - Fund based 4558.44

Short term Bank Facilities -Term loan 1220.22 CARE A3 (A Three)

Reaffirmed

Short term Bank Facilities -Non Fund based 2625.00


Non Convertible Debenture Issue - I 300 CARE BBB-

(Triple B Minus) Revised from

CARE BBB (Triple B) Non Convertible Debenture Issue - II 200

Non Convertible Debenture Issue - III 500

Total Instruments 1000

Rating Rationale

The revision in ratings assigned to bank facilities/instruments of Alok Industries Ltd (Alok) takes into account

moderation in liquidity position on account of increase in receivables during 9M period ended June 30, 2014

resulting into full utilization of working capital limits and sizable debt repayment obligations.

The ratings continue to derive strength from the experience of the promoters and the management in the textile

industry, integrated operations across the textile value chain and well established position being one of the leading

players in the industry.

The ratings however continue to be constrained by dependence on external borrowings leading to leveraged

capital structure and debt coverage indicators, exposure to group companies which are yet to break-even and

elongated working capital cycle. Further, the ratings also are constrained by fluctuation in the prices of raw

materials and forex movements imparting volatility to the profitability and intense competition in the sector.

Ability of Alok to improve its capital structure as well as cash flow position remains key rating sensitivities.

Background

Alok Industries Ltd. (Alok) is promoted by Jiwrajka family and is one of the largest and integrated textile player

having presence across the value chain right from cotton spinning, polyester yarn, apparel fabrics, home textiles

and garments. Besides, the company through its subsidiary, Alok Infrastructure Ltd has entered into real estate

business. The company has 16 manufacturing plants located at Silvassa, Vapi and Navi Mumbai.



448

Brief Rationale

On standalone basis, Alok reported operating Income and PAT of Rs.20,438 crore and Rs.920 crore respectively

during 18M period ended Sept 2013 vis-à-vis 12M period ended March 2012, wherein it reported operating

income and PAT of Rs.9,224 crore and Rs.381 crore respectively.

Further, on standalone basis, Alok reported operating income and PAT of Rs.3735 crore and Rs.43 crore

respectively during 3M period ended June 2014 vis-à-vis 3M period ended June 2013, wherein it reported

operating income and PAT of Rs.2,995 crore and Rs.33 crore respectively.

Analyst Contact


Tel: 022-67543505










449

Brief Rationale

October 01, 2014

CARE revises the rating of Lower Tier-II, Upper Tier-II & Perpetual Bonds of

YES Bank Limited Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Lower Tier-II Bonds 3,534.90 CARE AA+

(Double A Plus) Revised from CARE AA

[Double A]

Upper Tier-II Bonds (Under BASEL II norms)

2,402.60 CARE AA

(Double A) Revised from CARE AA-

[Double A Minus]

Perpetual Bonds (Under BASEL II norms)

526 CARE AA

(Double A) Revised from CARE AA-

[Double A Minus]

CARE has rated the aforesaid Upper Tier-II and Perpetual Bonds one notch lower than the Lower Tier II Bonds of Yes

Bank in view of their increased sensitiveness to the Bank’s Capital Adequacy Ratio (CAR), capital-raising ability and

profitability during the long tenure of the instruments. The ratings factor in the additional risk arising due to the

existence of the lock-in clause in hybrid instruments. Any delay in the payment of interest/principal (as the case

may be) following invocation of the lock-in-clause, would constitute as an event of default as per CARE’s definition

of default and as such these instruments may exhibit a somewhat sharper migration of the rating compared to

conventional subordinated debt instruments.

Rating Rationale

The ratings revision factor in the consistently good performance in terms of profitability, asset quality and

capitalization levels. CARE has also taken into account fresh capital infusion of Rs.2,942 crore in the bank. The

ratings also factor in the improving CASA proportion over the years, improvement in liquidity profile and

experienced top & senior management team. The ratings are, however, constrained due to relatively higher

proportion of bulk deposits and moderate resource profile. Asset quality, resource profile and increase in the retail

asset book are the key rating sensitivities.

Background

Yes Bank Ltd (YBL) is a new generation private sector bank incorporated in November 2003. The bank had a

deposit growth of 10.8% and advances growth of 18.4% in FY14. The number of branches and ATM stood at 560

and 1,139 respectively as on March 31, 2014 (FY13-end: Branch – 430, ATM – 951). Yes Securities (India) Ltd. is the

wholly-owned subsidiary of YBL which is engaged in stock broking services and distribution of financial products.

The number of employees increased from 7,024 at March 31, 2013 to 8,798 at March 31, 2014. Ms. Radha Singh is

the Non-Executive Chairperson (effective August 2014) and Mr. Rana Kapoor is the MD&CEO of YBL.

In FY14 (refers to the period April 01 to March 31), bank’s total income grew by 22% to Rs.11,703 crore while net

profit increased by 24.4% to Rs.1,618 crore. The Gross NPA ratio and Net NPA ratio stood at 0.31% and 0.05%,

respectively as on March 31, 2014. As per Basel III, the bank reported a Capital Adequacy Ratio of 14.40% (Tier I –

9.80%) as on March 31, 2014. CASA deposit proportion improved to 22.03% as on March 31, 2014 compared with

18.95% at FY13-end.



450

Brief Rationale

The PAT for Q1FY15 stood at Rs.439 crore on an income of Rs.3,105 crore. The Gross NPA ratio and Net NPA ratio

stood at 0.33% and 0.07%, respectively as on June 30, 2014. YBL reported a Capital Adequacy Ratio of 17.60% (Tier

I – 12.20%) as on June 30, 2014 as per BASEL III.

Analyst Contact

Name: Mr Vishal Sanghavi

Tel: 022-6754 5430










451

Brief Rationale

October 01, 2014


Bhadrashree Steel & Power Limited

Rating

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long-term Bank Facilities 15.89 (Reduced from

20.42)

CARE BB+ [Double B Plus]

Revised from CARE BB- (Double B Minus)


Rating Rationale

The revision in the rating of the bank facilities of Bhadrashree Steel & Power Limited (BSP) factors in the significant

growth in the total operating income, improvement in the capital structure and coverage indicators during FY14

(refers to the period April 1 to March 31). The rating, however, continues to remain constrained by its short track

record of operations, limited value addition and raw material price fluctuation risk. The rating is further limited by

the competitive and cyclical nature of the iron and steel industry. The rating also takes cognizance of moderate

though declining PBILDT margin in FY14.

The rating continues to derive strength from the experience of promoters in the iron and steel industry, moderate

profitability margins, moderate operating cycle and proximity to raw material sources and customers.

Going forward, the ability of BSP to maintain its profitability margins along with improvement in capacity

utilization shall be the key rating sensitivities. Also, the ability of the company to maintain its capital structure

would be another key rating sensitivity.

Background

Established in 2004, BSP is a closely held public limited company promoted by Mr Mukesh Goel and his family

members. BSP is engaged in the manufacturing of sponge iron and trading of mild steel sections and other steel

parts. The company sells its final product directly and through distributors to various steel manufacturers and

rolling mills. The manufacturing facility of the company is located at village Kunikeri in Karnataka with the installed

capacity of 60,000 tonnes per annum for manufacturing of sponge iron.

The raw materials required for production of sponge iron are iron ore met through bidding conducted by Metal

Scrap Trading Corporation (MSTC) in Karnataka, coal obtained by way of e-auctioning and dolomite which are

mainly procured from dealers located in Karnataka. BSP generated around 85% of the total operating income from

its manufacturing segment while the remaining was from its trading segment in FY14.

BSP reported a PAT of Rs.1.39 crore on a total operating income of Rs.99.90 crore in FY14 as against a total

operating income of Rs.75.56 crore and a PAT of Rs.0.99 crore in FY13.

Analyst Contact


Tel: 011- 45333228





452

Brief Rationale



Disclaimer:










factors.

453

Brief Rationale

October 01, 2014

CARE places the ratings assigned to bank facilities of

Shyam Steel Industries Limited under credit watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long Term Bank Facilities 397.49 ‘CARE BBB’ (Triple B) Placed on Credit

Watch Long Term/Short Term Bank Facilities 12.00 CARE BBB/CARE A3 (Triple B/A Three)

Short Term Bank Facilities 51.16 ‘CARE A3’ (A Three)

Total 460.65

Rating Rationale

The ratings of Shyam Steel Industries Ltd. (SSIL) have been put under credit watch in view of the order of Supreme

Court on deallocation of the coal mines allotted to the group company (Sova Ispat Ltd) and the possible impact of

the same on the credit profile of SSIL.

Background

SSIL, incorporated in March, 2002, was promoted by Shri Shyam Sundar Beriwala of Kolkata. The company

commenced manufacturing operation in October, 2003. It is currently engaged in manufacturing of sponge iron

(57,000 MTPA), billets (2,80,000 MTPA) and TMT bars (3,30,000 MTPA) at its manufacturing facility located at

Durgapur, West Bengal. SSIL also operates a 10 MW captive power plant (commenced operations from December

2012). SSIL sells its TMT bars under the brand “Shyam TMT”.

Analyst Contact


Tel: 033-40181609

Mobile: +91 9051730850













factors.



454

Brief Rationale

October 01, 2014

CARE places the ratings assigned to bank facilities of

Sova Ispat Limited under credit watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Long Term Bank Facilities 107.97 ‘CARE BBB (SO)’

[Triple B (Structured Obligation)] Placed on Credit Watch

Short Term Bank Facilities 29.75 ‘CARE A3 (SO)’

[A Three (Structured Obligation)]

Total 137.72

Rating Rationale

The ratings of Sova Ispat Ltd. (SIL) have been put under credit watch in view of the order of Supreme Court on

deallocation of the coal mines allotted to the company and the possible impact of the same on the credit profile of

the company.

Sova Ispat Ltd – Background

Incorporated in 1991 by Mukherjee Group of Kolkata, Sova Ispat Limited (SIL) was taken over by Beriwala Group of

Kolkata in January 2011 as a part of a backward integration move. The company is currently involved in the

manufacturing of Sponge Iron (150000 TPA), Ferro Alloys- (32400 TPA) and Cement (75000 TPA) at Mejia, Bankura,

West Bengal. The company also has a captive power plant of 15 MW and coal mines with an estimated

geographical reserve of 110 MT. The company is a step-down subsidiary of the group’s flagship company Shyam

Steel Industries Limited (SSIL).

As per provisional results of FY14, SIL earned PBILDT and PAT of Rs.58.1 crore and Rs.13.1 crore respectively on


About the Guarantor

Shyam Steel Industries Limited - Background

SSIL, incorporated in March, 2002, was promoted by Shri Shyam Sundar Beriwala of Kolkata. The company

commenced manufacturing operation in October, 2003. It is currently engaged in manufacturing of sponge iron

(57,000 MTPA), billets (2,80,000 MTPA) and TMT bars (3,30,000 MTPA) at its manufacturing facility located at

Durgapur, West Bengal. SSIL also operates a 10 MW captive power plant (commenced operations from December

2012). SSIL sells its TMT bars under the brand “Shyam TMT”.

Analyst Contact


Tel: 033-40181609

Mobile: +91 9051730850






455

Brief Rationale










factors.

456

Brief Rationale

October 01, 2014

CARE places the ratings assigned to Bank Facilities & INSTRUMENTS of

Usha Martin Limited under credit watch Ratings

Facilities Amount

(Rs. crore) Ratings

1 Remarks

Short-term Bank Facilities 2,625.00 CARE A1+ (Single A One Plus) Placed Under

Credit Watch

Short-term Bank Facilities 550.00 CARE A1+ (Single A One Plus) Placed under

Credit watch

Rating Rationale

The rating of Usha Martin Ltd. (UML) has been put under credit watch in view of the order of Supreme Court on

deallocation of the coal mines allotted to the company and the possible impact of the same on the credit profile of

the company.

Background

UML, the flagship company of Kolkata-based Jhawar group, is a mid-size steel manufacturer with saleable steel

capacity of around 8 lakh tonnes per annum. It operates end to end integrated facilities to manufacture long-steel

products (bars, blooms, steel wire rods and rolled products) and specialty steel and related products (wires, wire

ropes, strands and conveyors cords). The company has its manufacturing units at Ranchi, Jamshedpur, Hoshiarpur

(Punjab), Agra and Chennai.

Analyst Contact

Name: Saurav Chatterjee

Tel # 033-4018 1600

Mobile # 9830714920













factors.



457

Brief Rationale

October 01, 2014

CARE withdraws rating assigned to bank facilities of

GVK City Pvt.Limited

CARE has withdrawn the rating assigned to the bank facility of GVK City Pvt. Limited, with immediate effect, as the

company has fully repaid the amounts under the said facility and there is no amount outstanding under the facility

as on date.

Analyst Contact

Name: Mr. Vidhyasagar L.

Tel: 040-4010 2030













factors.

458

Brief Rationale

October 01, 2014

CARE suspended ratings assigned to bank facilities of

Acacia Life Sciences Private Limited

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Acacia Life Sciences

Private Limited. The ratings have been suspended as the company has not furnished the information required by

CARE for monitoring of the ratings.

Analyst Contact


Tel: 040-40102030













459

Brief Rationale

October 01, 2014


United Metachem Industries

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of United Metachem

Industries. The ratings have been suspended as the firm has not furnished the information required by CARE for

monitoring of the ratings.

Analyst Contact Name: Mohit Agrawal Tel: 079-40265612 Mobile: +91 85111 90083 Email: [email protected] CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com.












460

Brief Rationale

October 01, 2014


Pravarsh Impex Private Limited

CARE has suspended, with immediate effect, the ratings assigned to the long/short-term bank facilities of Pravarsh

Impex Private Limited. The ratings have been suspended as the company has not furnished the information

required by CARE for monitoring of the rating.

Analyst Contact

Name: Nitesh Dhoot












461

Brief Rationale

October 01, 2014


Mahavir Global Inc

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Mahavir Global Inc. The

rating(s) have been suspended as the firm has not furnished the information required by CARE for monitoring of

the rating(s).

Analyst Contact

Name: Achin Nirwani

Tel: 011- 45333228




Disclaimer










factors.


462

Brief Rationale

October 01, 2014

CARE suspends the rating assigned to bank facilities of

Ma’am Arts

CARE has suspended, with immediate effect, the rating assigned to the bank facilities of Ma’am Arts. The rating has

been suspended as the firm has not furnished the information required by CARE for monitoring of the rating.

Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612













Tel:-

463

Brief Rationale

October 01, 2014

CARE suspends the ratings assigned to bank facilities of

Bharti Construction Company

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Bharti Construction

Company. The ratings have been suspended as the firm has not furnished the information required by CARE for


Analyst Contact

Name: Mohit Agrawal

Tel: 079- 4026 5612













Tel:-

464

Brief Rationale

October 01, 2014

CARE suspends the ratings assigned to bank facilities of

Kakhani Metal Private Limited

CARE has suspended, with immediate effect, the ratings assigned to the bank facilities of Kakhani Metal Private

Limited. The ratings have been suspended as the company has not furnished the information required by CARE for


Analyst Contact

Name: Kalpesh Patel

Tel: 079-40265611

Mobile: 9909026322













factors.

465

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to Bank Facilities of

Lanco Babandh Power Ltd

Ratings


Ratings1 Remarks

Long-term Loans 5,197 CARE D (Single D )

Reaffirmed

Subordinate Debt 347 CARE D (Single D)

Reaffirmed


Rating Rationale

The rating reaffirmation takes into account the ongoing delays by Lanco Babandh Power Ltd (LBPL) in servicing its

debt obligations.

Background

Lanco Babandh Power Private Limited was incorporated as a private limited company on May 30, 2007. The

company was converted into a limited company and its name was changed to Lanco Babandh Power Limited (LBPL)

on February 03, 2010.

The company is promoted by Lanco Group Ltd (LGL), to construct, operate and maintain a 1,320 MW (2 x 660 MW)

coal-based power project in Dhenkanal district, Orissa. The flagship company of the Lanco group is Lanco Infratech

Ltd. The estimated project cost of Rs.6,930 crore is proposed to be financed at a debt to equity ratio of 4:1. The

debt of Rs.5,544 crore is a mix of senior debt and subordinate debt of Rs.5,197 crore and Rs.347 crore,

respectively.

On the fuel supply arrangements, LBPL is in the process of signing of Fuel Supply Agreement (FSA) with Mahanadi

Coal fields Ltd (MCL) for the supply of 2.8 MTPA for the first unit. Coal for the second unit is to be sourced from the

captive coal mine at Rampia in Orissa which has been co-allotted to Lanco Group Ltd along with JV’s of five other

companies. However, the same is cancelled by the Supreme Court in its latest verdict as on September 24, 2014.

For the power off-take, LBPL has entered into a Power Purchase Agreement (PPA) with “GRIDCO Ltd” for 25% of

power, with UP Power Corporation Ltd (UPPCL) for 454 MW and with Rajasthan Discoms for 374MW (aggregating

87.7% of gross generation). The balance approximately 13% is expect to be sold under merchant basis.



466

Brief Rationale

As per the latest Lenders Engineer (LE) report for the period ending June 2014, the LE has reported that there has

been no construction activity on the site since April 2013 largely for the lack of funds. Furthermore, the project has

met with time and cost overruns and has not achieved its COD which was due on September 2014. The revised

project cost and expected COD is under consideration by the lenders.

The company has so far incurred approximately 72% of the total project cost of Rs.6,930 crore till June 2014 which

has been funded by way of debt of Rs. 3,695crore and promoters’ contribution of Rs.928 crore. The liquidity profile

of the company continues to be stressed given the delay in commissioning of the project coupled with the absence

of timely support from the parent company, Lanco Infratech Ltd.

Analyst Contact


Tel: 011-45333232










467

Brief Rationale

October 10, 2014

CARE reaffirms the ratings assigned to the bank facilities and instruments of

Power Grid Corporation Of India Ltd

Ratings

Facilities/Instruments Amount

(Rs. crore) Ratings

1 Remarks

Long-term Borrowing Programme for FY15 13,500 CARE AAA [Triple A] Reaffirmed

Short-term Borrowing Programme for FY15 5,800 CARE A1+ [A One Plus] Reaffirmed








Long-term Borrowing Programme for FY09 3,697.50 CARE AAA [Triple A] Reaffirmed

Long-term Bonds Issue (Series XXVI & XXVII) 1,278 CARE AAA [Triple A] Reaffirmed

Long-term Bank Facilities 1,543.33 CARE AAA [Triple A] Reaffirmed

Short-term Bank Facilities 2,650 CARE A1+ [A One Plus] Reaffirmed

Rating Rationale

The ratings assigned to the bank facilities and instruments of Power Grid Corporation of India Ltd (PGCIL) continue

to derive strength from ownership and continued support of the Government of India (GoI), PGCIL’s pivotal role in

the Indian power sector for developing and maintaining inter-state and inter-regional power transmission network

and national grid management, low risk business having cost-plus-tariff structure for majority of the projects, high

operating efficiency, consistent increase in the operating income and net profit, healthy profitability margins and

strong project execution skills.

Going forward, sustaining the timely collection of dues from its customers (state-owned utilities) having relatively

weak credit risk profile, successfully managing the large capital expenditure plans and its funding structure would

be the key rating sensitivities.

Background

PGCIL was incorporated in October 1989 with the responsibility of planning, executing, owning, operating and

maintaining the high-voltage transmission system in the country. PGCIL is India’s principal electric power

transmission company. It owns and operates most of India’s inter-regional and inter-state power transmission

system (ISTS) with a transmission network of about 106,804 circuit km (ckm) as on March 31, 2014. The total inter-

regional transfer capacity of the company is 37,950 MW as on March 31, 2014 and it wheels nearly 50% of the

total power generated across India. Also, the company has more than 29,640 km of fibre optic network. PGCIL was



468

Brief Rationale

notified as a Navratna company by the GoI in May 2008. The GoI holding in PGCIL stood at 57.90% as on March 31,

2014.

For FY14 (refers to the period April 01 to March 31), PGCIL reported a total operating income of Rs.15,941.9 crore

with PBILDT and PAT margins of 83.95% and 28.21% respectively on a standalone basis. As per Q1F15 results (UA),

PGCIL (standalone) posted a total operating income of Rs.3,941.9 crore with PBILDT and PAT margins of 86.37%

and 28.83% respectively.

Analyst Contact

Name: Jatin Babbar

Tel: 011- 45333246










469

Brief Rationale

Brief Rationale October 13, 2014 CARE ASSIGNS 'CARE BB ...

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