icra rating press releases for march 12, 2015

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PRESS RELEASE Page 1

ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex".

The classification of instruments according to their complexity levels is available on the website www.icra.in

Disclaimer: ICRA Ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA Ratings are subject to a process of surveillance, which may lead to revision in ratings. Please visit our website (www.icra.in)

or contact any ICRA office for the latest information on ICRA Ratings outstanding.

ICRA RATING PRESS RELEASE March 12, 2015

New Ratings/Enhancements

Entity Instruments Rating Amount (Rs. crore)

Graphic Era Educational Society Bank Facilities [ICRA]BBB- (Stable) 70

Incap Contract Manufacturing Services Private Limited

Bank Facilities [ICRA]A3+ 0

NTPC Limited Bonus Debentures

Programme [ICRA]AAA (Stable) 10306.83

Bajaj Kagaj Limited Bank Facilities [ICRA]BB- (Stable)/[ICRA]A4 9.44

Shree Hari Industries Bank Facilities [ICRA]BB (Stable) 8.3

Setmax Ceramic Bank Facilities [ICRA]B-/[ICRA]A4 0.33

Jaldhara Ginning Factory Bank Facilities [ICRA]B 8.18

GM Exports Bank Facilities [ICRA]BB (Stable)/[ICRA]A4 4

Subhasri Pigments Private Limited Bank Facilities [ICRA]BBB+ (Stable) 12.57

India Infradebt Limited Non Convertible

Debentures [ICRA]AAA (Stable) 160

Forever Green Solar Solar Grading SP 4E 0

Sri Duraiappa Stores Bank Facilities [ICRA]B 6

Sri Duraiappa Agency Bank Facilities [ICRA]B 9

Jewel Classic Hotels Private Limited Bank Facilities [ICRA]BB+ (Stable) 10

IFMR Capital Finance Private Limited Non Convertible

Debentures [ICRA]A+(Stable) 150

Srinivasa Agro Products Bank Facilities [ICRA]BB- (Stable) 3

Adarsh Synthetics Private Limited Bank Facilities [ICRA]B+ 10

Reaffirmations

Entity Instruments Rating Amount (Rs. crore)

Kapoor Oil Industries Bank Facilities [ICRA]B 7.4

Graphic Era Educational Society Bank Facilities [ICRA]BBB- (Stable) 130

Pioneer Globex Pvt. Ltd. Bank Facilities [ICRA]A4 25

Big Tiles Bank Facilities [ICRA]B+/[ICRA]A4 15.63

Ganga Papers India Ltd. Bank Facilities [ICRA]A4 0

Ganga Bag Udyog Pvt. Ltd. Bank Facilities [ICRA]BB-(Stable)/[ICRA]A4 18.74

Quality Woven Sacks Pvt. Ltd. Bank Facilities [ICRA]BB (Stable)/[ICRA]A4 24.85

Ras Polytex Pvt. Ltd. Bank Facilities [ICRA]BB (Stable)/[ICRA]A4 12.47

Setmax Ceramic Bank Facilities [ICRA]B-/[ICRA]A4 7.45

Payal Petropack Private Limited Bank Facilities [ICRA]B+/[ICRA]A4 36

GM Exports Bank Facilities [ICRA]BB (Stable)/[ICRA]A4 26.5

Subhasri Pigments Private Limited Bank Facilities [ICRA]A3+ 14.4

Servotech India Limited Bank Facilities [ICRA]BB (Stable)/[ICRA]A4 11.5

Goel Exim India Private Limited Bank Facilities [ICRA]BB- (Stable) 50

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Shree Ramkrushna Ginning & Oil Industries

Bank Facilities [ICRA]BB- (Stable) 9.9

Srinivasa Agro Products Bank Facilities [ICRA]BB- (Stable) 12

Anugraha Valve Castings Limited Bank Facilities [ICRA]A- (Stable)/[ICRA]A2+ 61.43

Hari Hara Traders Bank Facilities [ICRA]BB- (Stable)/[ICRA]A4 12

Downgrades

Entity Instruments Previous Rating New Rating Amount (Rs. crore)

Sakthi Spintex Private Limited Bank Facilities [ICRA]C/[ICRA]A4 [ICRA]D 15.85

Ganga Papers India Ltd. Bank Facilities [ICRA]BB (Stable) [ICRA]BB- (Stable) 14

R. Jaykumar & Co. Bank Facilities [ICRA]A4 [ICRA]D 6.5

Upgrades


Texport Industries Private Limited

Bank Facilities [ICRA]BBB(Stable)/

[ICRA]A3+ [ICRA]BBB+(Stable)

/[ICRA]A2 180.89

Incap Contract Manufacturing Services Private Limited

Bank Facilities [ICRA]BBB-

(Stable) [ICRA]BBB (Stable) 20

C. S. Infraconstruction Limited Bank Facilities [ICRA]BB- (Stable) [ICRA]BB (Stable) 110

Shree Hari Industries Bank Facilities [ICRA]BB- (Stable) [ICRA]BB (Stable) 9.7

Duke Plasto Technique Pvt. Ltd.

Bank Facilities [ICRA]BBB-

(Stable)/[ICRA]A3 [ICRA]BBB

(Stable)/[ICRA]A3+ 17.3

Manjeera Retail Holdings Pvt. Ltd.

Bank Facilities [ICRA]B [ICRA]B+ 314

Shanti G.D. Ispat & Power Pvt. Ltd.

Bank Facilities [ICRA]BB-

(Stable)/[ICRA]A4 [ICRA]BB+

(Stable)/[ICRA]A4+ 58.5

Visual Percept Solar Projects Pvt. Ltd.

Bank Facilities [ICRA]BBB(Stable) [ICRA]A- (Stable) 231

Notice of Withdrawals


Cairn India Limited Issuer Rating IrAAA(Stable) IrAAA(Stable)* 0

Suspensions


Sunborne Energy Gujarat One Private Limited

Bank Facilities [ICRA]BBB-(Stable) ^ 150

Manjeera Projects Bank Facilities [ICRA]B+ ^ 35

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* Rating withdrawn

# Under rating watch

@ Under rating watch with negative implications

& Under rating watch with developing implications

% Under rating watch with positive implications

^ Rating Suspended

fc Compulsorily Fully Convertible Bonds/Debentures

SO Structured Obligation

S Supported by Stand by/Letter of Support

(P) The Letter 'P' in parenthesis after the rating symbol indicates that the debt instrument is being issued to raise resources by a new company for financing a new project and the rating assumes successful completion of the project

! Conditional Rating

(The letters SO in parenthesis suffixed to a rating symbol stand for Structured Obligation. An SO rating is specific to the rated issue, its terms, and its structure. SO ratings do not represent ICRAs opinion on the general credit quality of the issuers concerned. This rating is based on the credit enhancement structure and the structured payment mechanism for the rated long term debt)

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Long-Term rating Scale All Bonds, NCDs, and other debt instruments (excluding Public Deposits) with original

maturity exceeding one year. [ICRA]AAA Instruments with this rating are considered to have the highest degree of safety regarding timely

servicing of financial obligations. Such instruments carry lowest credit risk. [ICRA]AA Instruments with this rating are considered to have high degree of safety regarding timely servicing of

financial obligations. Such instruments carry very low credit risk. [ICRA]A Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of

financial obligations. Such instruments carry low credit risk. [ICRA]BBB Instruments with this rating are considered to have moderate degree of safety regarding timely

servicing of financial obligations. Such instruments carry moderate credit risk. [ICRA]BB Instruments with this rating are considered to have moderate risk of default regarding timely servicing of

financial obligations [ICRA]B Instruments with this rating are considered to have high risk of default regarding timely servicing of

financial obligations. [ICRA]C Instruments with this rating are considered to have very high risk of default regarding timely servicing of

financial obligations [ICRA]D Instruments with this rating are in default or are expected to be in default soon Note:

For the rating categories [ICRA]AA through to [ICRA]C the sign of + (plus) or (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA, while [ICRA]AA- is one notch lower than [ICRA]AA.

ICRAs Medium-Term Rating Scale for rating of Public Deposits MAAA: The highest-credit-quality rating assigned by ICRA. The rated deposits programme carries the lowest credit

risk. MAA: The high-credit-quality rating assigned by ICRA. The rated deposits programme carries low credit risk. MA: The adequate-credit-quality rating assigned by ICRA. The rated deposits programme carries average credit

risk. MB: The inadequate-credit-quality rating assigned by ICRA. The rated deposits programme carries high credit risk. MC: The risk-prone-credit-quality rating assigned by ICRA. The rated deposits programme carries very high credit

risk. MD: The lowest-credit-quality rating assigned by ICRA. The rated instrument has very low prospect of recovery. Note: For the rating categories MAA through to MC the sign of + (plus) or (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of MAA+ is one notch higher than MAA, while MAA- is one notch lower than MAA.

Short-Term Rating Scale All instruments with original maturity within one year. [ICRA]A1 Instruments with this rating are considered to have very strong degree of safety regarding timely payment

of financial obligations. Such instruments carry lowest credit risk. [ICRA]A2 Instruments with this rating are considered to have strong degree of safety regarding timely payment of

financial obligations. Such instruments carry low credit risk. [ICRA]A3 Instruments with this rating are considered to have moderate degree of safety regarding timely payment

of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories. [ICRA]A4 Instruments with this rating are considered to have minimal degree of safety regarding timely payment of

financial obligations. Such instruments carry very high credit risk and are susceptible to default. [ICRA]D Instruments with this rating are in default or expected to be in default on maturity. Note:

For the short-term ratings of [ICRA]A1 through to [ICRA]A4, the sign of + (plus) may be appended to the rating symbols to indicate their relatively stronger position within the rating categories concerned. Thus, the rating of [ICRA]A2+ is one notch higher than [ICRA]A2.

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FOR IMMEDIATE RELEASE

March 12, 2015

Ratings revised for bank facilities of Sakthi Spintex Private Limited to [ICRA]D ICRA has revised the long-term rating to [ICRA]D (pronounced ICRA D) from [ICRA]C (pronounced ICRA C) for the Rs. 6.78 crore (revised from 10.20) term loan facilities and the Rs. 3.00 crore fund based facilities of Sakthi Spintex Private Limited (SSPL / the Company)*. ICRA has also revised the short-term rating to [ICRA]D (pronounced ICRA D) from [ICRA]A4 (pronounced ICRA A four) for the Rs. 2.65 crore non-fund based facilities of SSPL. ICRA has also assigned a long term rating of [ICRA]D (pronounced ICRA D) for the Rs. 3.42 crore proposed facilities of SSPL. The rating action considers the delays in debt servicing by the company due to tight liquidity position and also take note of the weak financial profile of the company characterised by stretched capital structure and weak coverage indicators. ICRA also takes note of the experience of promoters in the textile industry and efforts taken by them to increase scale of operations, although the results remain to be seen. Early regularisation of debt servicing is critical and remains key rating sensitivity. Company Profile Sakthi Spintex Private Limited was incorporated in 2002 to manufacture cotton yarn and is promoted by Mr. Vijayakumar, who is also a Director on the Board of Arun Spinning Mills Private Limited. The Company commenced production in November 2011, and is currently engaged in trading of yarn and conversion of processed cotton to yarn on a job work basis for its group company. SSPLs manufacturing facility is located near Srivilliputhur, Tamil Nadu and currently operates with a capacity of 14,400 spindles. Recent Results The Company reported a net profit of Rs. 0.2 crore on operating income of Rs. 21.1 crore during 2013-14, as against a net loss of Rs. 1.0 crore on operating income of Rs. 13.8 crore during the corresponding previous fiscal year.

March 2015

For further details please contact: Analyst Contacts: Mr. K. Ravichandran, (Tel. No. +91-44-45964301) [email protected] Relationship Contacts: Mr. Jayanta Chatterjee (Tel. No. +91-80-43326401) [email protected]

* For complete rating scale and definitions, please refer to ICRAs website www.icra.in or other ICRA Rating Publications.

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FOR IMMEDIATE RELEASE March 12, 2015

Rating of [ICRA]B reaffirmed for bank facilities of Kapoor Oil Industries ICRA has reaffirmed the [ICRA]B (pronounced ICRA B) rating to the Rs. 6.00 crore

* cash credit facility and Rs.

Rs. 1.40 crore term loan facility of Kapoor Oil Industries (KOI).

The reaffirmation of rating takes a note of Kapoor Oil Industries (KOI) modest scale of operations and financial profile characterized by weak debt coverage indicators, high gearing and stretched liquidity position due to high inventory holding. ICRA also takes note of the highly competitive and fragmented industry structure with the limited value additive nature of operations, which leads to pressure on profitability. The rating further incorporates the vulnerability to adverse movements in agricultural produce prices as is apparent in the recent drop in cotton prices on account of reduced imports by China and slow demand from spinning mills against anticipated high production. Also, being a partnership firm, substantial withdrawals by the partners can have an adverse impact on capital structure of the firm. The rating, however, favourably considers the long experience of the promoters in the cotton industry as well as the location of the company, giving it easy access to high quality raw cotton. It also considers the forward integration in crushing facilities providing additional revenues and diversification and the rise in operating income in FY14 driven by increased volume and realization. Firm Profile Kapoor Oil Industries was established on 4

th July 2006 as a partnership firm to engage in the business of

crushing cottonseeds. In FY13, the firm has diversified its operation by entering into the ginning and pressing segment to produce cotton bales and cottonseeds. The manufacturing unit located at Vijapur, Gujarat is equipped with 14 jumbo ginning machines, one pressing machine and four expellers. It has an installed capacity to produce 145 cotton bales and 4 MT of cottonseed oil per day (24 hours operation). Six partners namely Mr. Amrutbhai Patel, Mr. Dahyabhai Patel, Mr. Chunilal Patel, Mr. Rameshbhai Patel, Mr. Rashikbhai Patel and Mr. Popatbhai Patel manage the operations of the firm. Recent Results In FY14, KOI reported an operating income of Rs. 23.33 crore and net profit of Rs. 0.29 crore.

February 2015

For further details please contact: Analyst Contacts: Mr. Anjan Ghosh (Tel. No. +91-22-3047 0049) [email protected] Relationship Contacts: Mr. L. Shivakumar, (Tel. No. +91-22-2433 1084) [email protected]

* 100 lakh = 1 crore = 10 million

For complete rating scale and definitions, please refer to ICRAs website www.icra.in or other ICRA Rating

Publications.

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Rating of [ICRA]BBB- (Stable) reaffirmed for bank facilities of Graphic Era Educational Society; rated amount enhanced ICRA has reaffirmed the long-term rating of [ICRA]BBB- (pronounced ICRA triple B minus) for Rs. 200 crore

*,

fund-based and proposed bank facilities (enhanced from Rs. 130 crore fund-based bank facilities earlier) of Graphic Era Educational Society (GEES)

. The outlook on the rating continues to be stable.

The rating reaffirmation factors in the continued comfortable financial profile of the society characterized by its healthy operating surpluses, reasonable debt protection metrics despite an increase in debt levels supported by moderate debt repayment obligations vis-a-vis cash accruals, as well as healthy operating and retained cash flows

. Although the society enjoys comfortable debt-protection metrics, being a non-profit society it is

required to mandatorily reinvest its surpluses in order to maintain its tax-free status. As a result, the society invested ~Rs 290 crore towards fixed assets during last five years (FY10-FY14), against cash accruals of ~Rs 160 crore and debt repayments of ~Rs 60 crore during the same period. With sizeable investments in fixed assets, scheduled repayments and lumpiness in cash inflows (fee receipts), prudent cash flow management remains a key concern for the society to maintain liquidity. While reaffirming the rating, ICRA has taken a note of societys moderate capex plans in the short to medium term and its intent to partially utilise the cash surpluses to improve the liquidity and reduce the reliance on overdraft facilities to fund the capital expenditure requirements. This apart, the society intends to set up a medical college and a hospital over the next few years. The plans are, however, in initial stages of planning at present. Timing of the said capex, and terms of debt availed for the same will be critical determinants of the societys credit profile going forward. Although both the universities reported a decline in admissions in its flagship course- B. Tech, over the past two years, introduction of new courses together with improvement in admissions in its other courses facilitated an overall improvement in admissions during AY14-15 while also providing diversity to the societys revenue receipts profile. Increasing student base together with regular fee hikes supported improved scale of operations during FY14 and FY15. While societys ability to maintain a healthy growth in admissions and hence student strength going forward would be critical to maintain operating surpluses given the high operating leverage in education sector; the flexibility it enjoys in implementing fee hikes in both universities provides comfort. Further, the rating continues to derive comfort from promoters experience of more than two decades in the education sector. Overall placements remained healthy in AY13-14 with around 95% of the participating students getting placed. Ability to maintain placement level from existing recruiters as well as add new recruiters given the increasing student base will be critical to maintain the placement rates in future. While there has been a favourable outcome by UGC on the ongoing issue pertaining to possible de-recognition of the deemed university status of GEU, the society continues to face regulatory risk considering that the matter is still pending in the Honble Supreme Court. Nevertheless, gradual improvement in admissions and student base of GEHU (a state private university) has reduced dependency on GEU and has made the option of merger of two universities in case of an adverse outcome on the issue more feasible. This apart, regulatory risk also emanates from any adverse outcome due to Income Tax assessments of the societys books, given the recent search operations undertaken by IT department on society and its key management personnel. Though there have been no adverse findings on the society during the search operations, it continues to be an event risk. Further, the society continues to face geographical concentration



Publications. Retained cash flow is defined as operating cash flows after working capital changes less interest payments

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risk with all three campuses located in Uttarakhand state as was also observed in a decline in its admissions during AY13-14 when the state experienced floods. In ICRAs view, the societys ability to correct the mismatch between long-term funding requirements and availability, by using the cash accruals towards reduction of short-term loan facilities availed by the society; as well as timing and terms of debt funding for the proposed capex on medical college and hospital will be the key rating sensitivities going forward. In addition, in the back drop of high competitive intensity given the large number of universities and colleges in the state and high operating leverage, the ability of the society to maintain fresh enrolments every year remains crucial for maintaining a healthy financial profile and sound debt servicing capability. Entity Profile Established in 1996, Graphic Era Educational Society (GEES) has two universities under its ambit, namely Graphic Era University (GEU) and Graphic Era Hill University (GEHU) set up in the year 1998 and 2011 respectively. While GEU has a single campus in Dehradun (Uttarakhand), GEHU has two campuses - one each in Dehradun (main campus) and Bhimtal (near Nainital in Uttarakhand). The universities offer courses in engineering, biotechnology, computer applications, humanities, allied sciences, law, management, computer applications and architecture. Engineering, however, is the largest stream accounting for roughly three-fourths of the societys course fee receipts (in FY13 and FY14). Whereas GEU has a student strength of 7,145 in AY14-15, GEHUs student strength for the year is relatively lower at 4,396 because of its limited track record of operations vis--vis GEU. Prof. (Dr.) Kamal Ghanshala is one of the founder members and Chairman of the Society. Recent results As per the audited results for the year ended March 2014, GEES reported an estimated net surplus of Rs. 24.3 crore on gross receipts of Rs. 157.5 crore as compared to net surplus of Rs. 25.7 crore on gross receipts of Rs. 124.5 crore for the year ended March 2013. For FY15, the gross revenue receipts are estimated to be ~Rs 170 crore.

February 2015 For further details please contact: Analyst Contacts: Mr. Rohit Inamdar (Tel. No. +91-124-4545847) [email protected] Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]

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Rating of [ICRA]A4 reaffirmed to the bank facilities of Pioneer Globex Pvt. Ltd. (erstwhile Pioneer Exports) ICRA has reaffirmed the [ICRA]A4 (pronounced as ICRA A Four) rating assigned to the Rs. 25.00 crore

* fund

based bank facility of Pioneer Globex Pvt. Ltd. (PGPL).

The rating continues to be constrained by Pioneer Globex Pvt. Ltd. (PGPL)s weak financial profile marked by, thin profit margins, leveraged capital structure, stretched liquidity position and weak coverage indicators. The rating also takes into consideration PGPLs customer profile, which is currently skewed towards 1-2 groups which has recently led to de-growth in revenues following lower off take from them and inherent risk associated with the iron ore export business like volatility in prices, foreign currency fluctuation risk (although mitigated partly by PGPLs hedging policies) and regulatory risks as reflected by the recent hike in export duty on iron ore fines. The rating nevertheless takes into consideration the experience of the partners in the field of ship breaking and steel trading and established long term relationship with its customers. ICRA has also factored change in the legal status of PGPL as a private limited company. Company Profile Pioneer Globex Pvt. Ltd. (PGPL) was initially established as a partnership firm in the year 2008 with the name Pioneer Exports. Later on, the firms name was changed to Pioneer Globex in June 2013. In November 2013, the firm was converted into private limited company with the company name as Pioneer Globex Pvt. Ltd. It is a group firm of Sheth Ship Breaking Corporation (SSBC); a partnership firm involved in ship breaking activities .Both the firms are being managed by the same promoters Mr. Narendra N. Shah, Mr. Hardik N. Shah, Mr. Pravin G. Shah and Mr. Vijaybhai S. Sanghavi having experience of more than 20 years in the business of ship breaking. Recent Results During 2014-15, PGPL reported an operating income of Rs. 87 crore till 31st January 2015 as against an operating income of Rs. 68.81 crore and profit after tax of Rs. 1.52 crore during 2013-14

March 2015 For further details please contact: Analyst Contacts: Mr. Anjan Ghosh (Tel. No. +91-22-3047 0049) [email protected] Relationship Contacts: Mr. L. Shivakumar, (Tel. No. +91-22-2433 1084) [email protected]



Publications.

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Rating for bank loans of Texport Industries Private Limited upgraded to [ICRA]BBB+(Stable)/[ICRA]A2 ICRA has upgraded the long term rating from [ICRA]BBB (Pronounced ICRA Triple B) to [ICRA]BBB+ (Pronounced ICRA Triple B plus) for Rs 20.00 Crore term loans (Reduced from Rs 31.53 crore) of Texport Industries Private Limited (TIPL). ICRA has also upgraded the short term rating from [ICRA]A3+ (Pronounced ICRA A Three Plus) to [ICRA]A2 (Pronounced ICRA A Two) for Rs 150.89 crore fund based working capital limits (increased from Rs 122.76 crore) and Rs 10.00 crore non-fund based working capital limits (Reduced from Rs 26.60 crore) of TIPL. The outlook on the long term rating is stable. The ratings upgrade takes into account the healthy growth in operating revenues with 15% growth in FY14 and 45% growth in H1, FY15 due to increase in sales volumes with commissioning of incremental capacity at Hindupur facility (Phase-I in Q4, FY12, Phase-II in Q4, FY14 and Phase-III planned in Q4, FY15). The long-standing presence of the company of more than three decades in the Ready Made Garment exports and the established relationships with renowned international retailers coupled with commissioning of new units and stabilization of operations in the recently commissioned units is expected to support revenue growth over the medium term. The company as on 1

st January 2015 has a comfortable order book of over Rs 250 Crore

providing revenue visibility for the next six months. Apart from these, the company continues to benefit from its policy to hedge foreign exchange risk and its access to low cost borrowings mainly in the form of foreign currency. The rating upgrade also takes into account the comfortable liquidity as seen from the substantial liquid investments and cash balances of Rs. 50.53 Crore as on 31

st March 2014.

Low bargaining power with customers, high input costs (raw material, labour and power) coupled with stiff competition from exporting nations of Bangladesh and Vietnam have been resulting in low operating profit margins of 6.7-7.4% over the last four years. Operating profit margin is expected to continue at similar levels going forward. With the top five customers accounting for ~75% of FY14 revenues the company is exposed to high customer concentration risks in the form of revenue volatility and margin pressure. The assigned ratings are also constrained by the high working capital intensity which coupled with the strong growth and continuous capex is expected to result in stretched cash flows for the company, however, the company has enhanced the working capital limits and has adequate liquid investments to meet any shortfall. The high working capital borrowings of the company have resulted in moderately high leverage as seen from the gearing levels of 1.23 times as on 31

st March 2014.

Going forward, TIPLs ability to improve its profitability in the backdrop of intense competition from other low cost manufacturing countries, moderation of working capital requirements and the extent of capital expenditure and funding pattern for the same will be the key rating sensitivities. Company Profile Texport Industries Private Limited (TIPL) was started by Mr. Narendra Goenka in 1978 as a garment manufacturing export house. TIPL has presence in the ready-made garment (RMG) industry mainly in the US and Europe, with exports accounting for ~98% of the companys revenue. Its product portfolio mainly consists of woven garments (80%) and knitted wear (20%) in revenue terms. The Company has an established relationship with renowned international brands like Kohl, Casual Male, American living, Van Heusen, Primark Stores, Tommy Hilfiger, VF Europe, Armani Exchange, Polo Ralph Lauren and Wal-Mart. The company operates from over 17 manufacturing factories spread across Bangalore, Tirupur, Thiruvanthapuram, Mumbai and Hindupur with an estimated capacity of over 1.5 million garments per month. The group is setting up the third phase of its production facility at Hindupur, Andhra Pradesh which is expected to be operational from Q4, FY15.

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Recent Results In the financial year FY14, TIPL has an Operating Income of Rs. 470.11 crore and a PAT of Rs. 19.07 crore compared to an operating income of Rs. 409.16 crore and a PAT of Rs. 10.10 crore for FY13.

March 2015

For further details please contact: Analyst Contacts: Mr. Rohit Inamdar (Tel. No. +91-124-4545847) [email protected] Relationship Contacts: Mr. Jayanta Chatterjee (Tel. No. +91-80-43326401) [email protected]

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FOR IMMEDIATE RELEASE

March 12, 2015

Long term rating upgraded for the bank facilities of Incap Contract Manufacturing Services Private Limited from [ICRA]BBB- (stable) to [ICRA]BBB (stable); short term rating of [ICRA]A3+ assigned ICRA has upgraded the long term rating assigned to Rs. 5.00 crore (reduced from Rs. 17.00 crore) long term fund based facilities and Rs. 1.00 crore (reduced from Rs. 3.00 crore) long term proposed limits of Incap Contract Manufacturing Services Private Limited (ICPL/ the company) from [ICRA]BBB- (pronounced ICRA triple B minus) to [ICRA]BBB (pronounced ICRA triple B). The outlook on the long term rating is stable. ICRA has also assigned a short term rating of [ICRA]A3+ (pronounced ICRA A three plus) to the Rs. 14.00 crore (previously nil) short term fund based facilities of the company. The upgrade in the rating takes into account the improvement in the companys financial profile characterized by reduced gearing and improved coverage metrics, improvement in operating margins on account of various cost cutting measures undertaken at a Group level by the parent company, improvement in the net margins on account of reduced financial costs and the expected ramp up in sales volume on account of recent customer acquisitions. The rating also favourably takes into account the management teams extensive experience and technical background of the parent company, Incap Corporation, Finland, as well as the companys track record of more than seven years with reputed clients in international as well as domestic markets. The ratings are, however, constrained on account of the companys moderate scale of operations restricting its operational and financial flexibility to an extent, high dependence on top three customers who account for ~77% of the total revenues and high competitive intensity in the EMS industry in India which coupled with limited value addition and the commoditised nature of the business may restrict the pricing flexibility of the company going forward. The company is also exposed to significant foreign currency exposure risk as it derives about 73% of its revenues from exports. However, as about 60% of its raw material requirements are procured through imports, the risk is mitigated to an extent. Also, usage of PCFC and FBD facilities helps the company to hedge its position to an extent.

Company Profile Incorporated in 2007, Incap Contract Manufacturing Services Private Limited is engaged in providing electronic manufacturing services (EMS) primarily to companies operating in the consumer durable segment. The company manufactures products based on the design specifications given by its customers at its manufacturing facility in Hirehalli (near Bangalore). Major product lines of the company include assembling of inverters, Printed Circuit Board Assemblies (PCBA), Uninterruptible Power Supply systems (UPS) and Emergency Rescue Devices (ERD). The company derives majority of its income through sales to companies situated in countries like Netherlands and Switzerland. Key customers of the company include Victron Energy BV, GE Consumer & Industrial, Kone Elevator India Private Limited and Hitachi Hi Rel Power Electronics Private Limited.

The company, which started its operations by taking over TVS Electronic Limiteds contract manufacturing services division, is a subsidiary of Incap Corporation, Finland which currently holds 77.45% of shares of ICPL. The balance is held by Finnish Fund for Industrial Co-operation.

Recent Results The company reported a net profit of Rs. 13.5 crore on an operating income of Rs. 129.8 crore during the financial year 201314, as against a net profit of Rs. 11.6 crore on an operating income of Rs. 134.6 crore during 201213. As per provisional financials for half year ended September 30, 2014, the company reported a net profit of Rs. 8.1 crore on an operating income of Rs. 65.1 crore.

February 2015

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For further details please contact: Analyst Contacts: Mr. K. Ravichandran, (Tel. No. +91-44-45964301) [email protected] Relationship Contacts: Mr. Jayanta Chatterjee (Tel. No. +91-80-43326401) [email protected]

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ICRA suspends ratings for bank facilities of Sunborne Energy Gujarat One Private Limited ICRA has suspended [ICRA]BBB- rating assigned to the to the Rs 142.0 crores term loans and Rs 8.0 crores of unallocated limits of Sunborne Energy Gujarat One Private Limited. The suspension follows ICRAs inability to carry out a rating surveillance in the absence cooperation from the company.

February 2015 For further details please contact: Analyst Contacts: Mr. Sabyasachi Majumdar (Tel. No. +91 124 4545304) [email protected] Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]

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Long term rating revised for the bank facilities of C. S. Infraconstruction Limited to [ICRA]BB(stable) ICRA has revised the long term rating assigned to Rs. 5.0 crore

* term loans, Rs. 5.0 crore fund based limits

and Rs. 100.0 crore non-fund based limits of C. S. Infraconstruction Ltd (CSIL) to [ICRA]BB (pronounced

ICRA double B) from [ICRA]BB- (pronounced ICRA double B minus) assigned earlier. The outlook on the long term rating is Stable. The rating revision factors in the improvement in operational profile of CSIL as reflected by growing revenues of the company owing to improved pace of order execution as well as the healthy order inflow in current financial year. ICRA notes that in the past, CSIL witnessed significant delays in execution of the on-going projects due to multiple factors including delay in allocation of funds, forest clearance, and constraints in raw-material availability due to mining sanctions at Robertsganj (Uttar Pradesh). With improved fund availability and required clearances in place, CSIL could restart the execution of most of the stuck orders. The rating continues to draw comfort from CSIL promoters experience and track record in the road construction business, and its moderate financial profile marked by healthy operating profitability (operating profit margins of 20.36% in FY14) and moderate leverage levels (gearing of 0.4 times as on March 31, 2014). The rating also favorably factors in the healthy outstanding order book (with an orderbook/OI of ~6 times) which provides revenue visibility in the medium term. The rating however is inhibited by the execution risks associated with CSILs sizeable order book with a major part of it scheduled to be executed over the next 1-2 years. The rating is also constrained on account of exposure to sectoral and geographic risks emanating from CSILs pending order book, which is highly concentrated towards the state of Uttar Pradesh and road sector. Further, CSILs high dependence on government entities for orders exposes the company to risks arising out of budgetary allocation and spending of such government entities. ICRA has noted that CSILs working capital requirement has remained modest in the past supported by sizeable payables to sub-contractors and mobilization advances from customers. Going forward, the companys ability to execute projects in a timely manner, and maintain its profitability while managing its working capital requirements efficiently thereby limiting the reliance on external borrowings would be the key rating sensitivity factors. Company Profile CSIL was set-up as a partnership firm (Chhatrashakti Construction Company) in 2002 by Shri Umashanker Singh and his friends. The partnership firm was converted into its present form of a limited company on November 10, 2009. CSIL is engaged in road construction business and has executed multiple projects in Uttar Pradesh offered by state government bodies primarily Public Works Department (PWD). Recent Results In FY14, CSIL registered operating income of Rs. 153.5 crore on which it earned profit after tax (PAT) of Rs. 12.42 crore compared to operating income of Rs. 117.42 crore and profit after tax (PAT) of Rs. 10.62 crore in FY13.

February 2015



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For further details please contact: Analyst Contacts: Mr. Rohit Inamdar (Tel. No. +91-124-4545847) [email protected] Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]

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Rating of [ICRA]AAA (stable) assigned to Rs 10306.8305 crore Bonus Debentures programme of NTPC Limited

Instrument Details Amount in Rs. Crore^ Rating Action

March 2015

Bonus Debentures Programme 10306.8305 [ICRA]AAA (stable); assigned ICRA has assigned the rating of [ICRA]AAA (pronounced ICRA triple A) on the long term scale for Rs. 10306.8305 crore Bonus Debentures programme of NTPC Limited. The outlook on the long term rating is Stable. NTPC has outstanding rating of [ICRA]AAA (pronounced ICRA triple A) on the long term scale for Rs. 17682.5 crore bonds progamme, Rs. 56,577.25 crore term loans and Rs. 200 crore fund based facilities, and the rating of [ICRA]A1+ (pronounced ICRA A one plus) on the short term scale for Rs. 4,800 crore Non fund based facilities. The outlook on the long term rating is Stable ICRAs rating reaffirmation factors in NTPCs dominant position in the Indian power sector, its strategic importance to Government of India for achieving the targeted capacity addition programme under the central sector, its diversified customer base, and its cost competitiveness arising out of superior operational efficiencies along with proximity of most of its coal-based plants to pit heads. This coupled with the cost plus nature of tariffs has resulted in healthy and stable profitability indicators. The rating also factors in NTPCs strong financial position as reflected in low gearing and healthy coverage indicators. NTPCs cash collections have continued to remain strong since 2003-04 (as a result of tripartite agreement for settlement of SEB dues and the resultant payment discipline), as reflected by collections of 100% for FY 2013-14 and 9MFY15. Sustainability of the collection performance, going forward, remains an issue if sectoral reforms do not result in a fundamental improvement in the financial position of the state power utilities. In this context, ICRA notes that despite the satisfactory progress in filing of tariff petitions for FY 2015, states, SERCs in only 19 out of 29 states issued tariff orders for FY 2014-15 by November 2014. For the states which have issued tariff orders, tariff hikes have largely been limited on account of which sectoral woes like accumulation of regulatory assets and substantial revenue gaps are likely to continue in the near future. Further, the actual losses for utilities across a majority of the states have remained higher than the loss trajectory approved by the SERCs. Overall subsidy dependence also remains high, and is estimated at Rs. 720 billion by ICRA for FY 2015 for the state owned distribution utilities. Timely issuance of tariff orders, adequate tariff hikes for reduction of revenue gaps and time-bound recovery of the regulatory assets, reduction of distribution loss levels and ultimately decreasing subsidy dependence remain imperative for the financial health of the power distribution sector. NTPC has consistently demonstrated superior operating performance, as reflected by PAF and PLF levels of its generation stations which have remained much higher than the national average. For Q3FY15, the companys coal based power plants reported average PAF levels of 91.04% (as compared to the normative levels of 83%) and average PLF levels of 80.8% (as against the national average of 68.5%). For FY 2013-14, the average PAF levels stood at 91.8% and average PLF levels stood at 81.5% for its coal based plants. However, the PLFs for gas based power stations remained low for 9MFY15 which is attributable to low demand from grid for RLNG and Naphtha based power due to its high cost. Nevertheless, PAF levels for gas based plants remained adequate at 93.1% for Q3FY15. For FY 2013-14, average PAF levels stood at 91.8% while average PLF levels stood at 35.7% for gas based plants. NTPCs coal availability remained satisfactory in 9MFY15 as reflected by the satisfactory generation performance of the companys coal based power plants for the quarter. Further, coal availability at the Farakka and Kahalgaon stations improved substantially with the completion of waterways for transportation of coal. ICRA continues to derive comfort from the companys existing FSAs with CIL & SCCL for 1160 MW generation capacity yet to be commissioned and for 32,355 MW generation capacity (98% of commissioned standalone

^ 100 lakh = 1 crore = 10 million

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capacity) which assures it of significant volumes of domestic coal, its ability to source fairly large quantities of coal from overseas suppliers, and likelihood of supplies commencing in the near term from its ongoing captive mine development programme. Nevertheless, NTPCs dependence on coal imports to meet its requirement is likely to increase going forward. ICRA also notes that the CERCs tariff regulations for FY 2015-19 have introduced a number of key changes which may impact profitability of Gencos, including tightening of normative parameters for operational efficiency, linking of incentives to achieved PLF levels (earlier linked to plant availability), grossing up of pre-tax RoE based on effective tax rate (as against grossing up at applicable tax rate earlier) and reduction in allowed fuel stock for normative working capital. However, the normative plant availability factor for recovery of fixed charges has been reduced from 85% in earlier regulations to 83%. NTPC has substantial expansion plans which are likely to be funded with a debt: equity ratio of 70:30 which may result in a higher gearing compared to the present debt equity ratio of 0.78 times (As on 31

st March

2014). However, the companys debt servicing ability is expected to remain strong, given the cost plus tariff structure and tariff competitiveness of its existing power plants. While a few of NTPCs ongoing projects have seen some slippages in terms of project execution, this is unlikely to have a significant impact on the debt servicing capabilities given the strong cash flows from a large basket of operational power plants. Going forward, NTPCs ability to ensure fuel security for its substantial expansion projects as well as sustenance of the strong collection performance will remain key rating drivers. Company Profile NTPC was incorporated in 1975 as a thermal generation company and is currently Indias largest power generating entity. The total installed generation capacity of the company stood at 37,127 MW as on July 31, 2014 (43,128 MW including JVs/subsidiaries). In 2013-14, NTPC group generated 250.63 billion units, accounting for 25.91% of the total power generated in India. NTPC has been accorded the status of Maharatna, which gives it considerable operating flexibility. While continuing with its core business of coal and gas based thermal generation, NTPC has recently diversified (in some cases through JVs), into related activities like consulting, hydro-power development, power trading, coal mining, and exploration for oil and gas. NTPC reported total income from operations of Rs. 72,018.93 crore and profit after tax (PAT) of Rs. 10,974.74 crore for FY 2013-14, and total income from operations of Rs. 53932 crore and profit after tax (PAT) of Rs.7347 crore for 9M FY 2014-15.

March 2015 For further details please contact: Analyst Contacts: Mr. Sabyasachi Majumdar (Tel. No. +91 124 4545304) [email protected] Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]

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Ratings of [ICRA]B+ and [ICRA]A4 reaffirmed for bank facilities of Big Tiles A rating of [ICRA]B+ (pronounced ICRA B plus) has been reaffirmed to Rs. 8.13 crore

* term loans and Rs.

6.00 crore cash credit facility of Big Tiles(BT)

. ICRA has also reaffirmed [ICRA]A4 (pronounced ICRA A four)

rating to Rs.1.50 crore short-term non-fund based facilities of BT. The reaffirmation of ratings takes into account the modest scale of operations, high gearing and high dependence on creditors funding which has led to a high total outside liabilities. The rating is further constrained by highly competitive and fragmented nature of the industry as well as susceptibility of margins to raw material price volatility & increasing prices of gas, as it is the major source of fuel. . ICRA also notes the dependence of operations and cash flows of the company on the performance of the real estate industry which is the main consumer sector. Further, BT being a partnership firm, any significant withdrawals from the capital account would affect its net worth and thereby the gearing levels. The ratings however favorably considers the experience of the key promoters in the ceramic industry, location advantage enjoyed giving it easy access to raw material and improvement in profitability indicators on account of inhouse manufacturing of body clay which is one of the key ingredient in tile manufacturing resulting in lower raw material cost . Firm Profile Big Tiles (BT) is a wall tiles manufacturer with its plant situated at Morbi, Gujarat. The firm was established in 2008, while the firm commenced its operations in August 2009. BT is managed by Mr. Pankaj Marvaniya and other family members. The plant has an installed capacity to produce 40000 MTPA of ceramic wall tiles. BT currently manufactures wall tiles of size 18 X 12 and 24 X 12 with the current set of machineries at its production facilities. Recent Results For the year ended 31

st March 2014, the company reported an operating income of Rs.31.64 crore and profit

after tax of Rs. 2.03 crore. March 2015

For further details please contact: Analyst Contacts: Mr. Anjan Ghosh (Tel. No. +91-22-3047 0049) [email protected] Relationship Contacts: Mr. L. Shivakumar, (Tel. No. +91-22-2433 1084) [email protected]



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Ratings of [ICRA]BB- and [ICRA]A4 assigned to the bank facilities of Bajaj Kagaj Limited ICRA has assigned its long term rating of [ICRA]BB- (pronounced ICRA double B minus) and its short-term rating of [ICRA]A4 (pronounced ICRA A four) to the Rs. 9.44 crore bank facilities of Bajaj Kagaj Limited (BKL). ICRAs ratings are constrained by the intensely competitive nature of the paper industry and the commoditized nature of the product, which limits the bargaining power of the company. This has also resulted in a steady erosion in operating profit margins, with the margins declining to 11.07% in 2013-14 from 17.33% in 2010-11. The ratings also take into account the large scheduled debt repayments due to which its Debt Service Coverage Ratio (DSCR) was at 1.07x in 2013-14. ICRA, however, positively factors in the companys lightly leveraged capital structure and moderate interest coverage and Net Cash Accruals/Total debt ratios. The ratings also derive comfort from the extensive experience of the promoters in the paper industry and healthy plant utilisation levels which have led to strong sales growth in 2013-14. Going forward, the ability of the company to maintain its operating profit margins and improve capacity utilisation along with efficient working capital management would be the key rating sensitivities. Any major debt funded capital expenditure will also be a key monitorable. Company Profile BKL is a closely held public company promoted by Mr. Gaya Prasad Bajaj and family. He has been in the paper trading business since 1967 and has significant experience. The company manufactures writing and printing paper using indigenous waste paper. It commenced commercial production in FY2009 in Unnao, Uttar Pradesh with an installed capacity of 18,000 metric tonnes per annum. Recent Results In 2013-14, BKL reported an operating income of Rs. 47.41 crore and a net profit of Rs. 1.16 crore as against an operating income of Rs. 36.50 crore and a net profit of Rs. 0.99 crore in the previous year.

March 2015

For further details please contact: Analyst Contacts: Mr. Sabyasachi Majumdar (Tel. No. +91 124 4545304) [email protected] Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]

For complete rating definitions, please refer to the ICRA website www.icra.in or any of the ICRA Rating

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Rating of long term bank facility of Shree Hari Industries upgraded to [ICRA]BB from [ICRA]BB- ICRA has revised its rating on the Rs. 18 crore (enhanced from Rs 9.70 crore) bank facilities of Shree Hari Industries (SHI) to [ICRA]BB from [ICRA]BB-. The outlook on the rating is Stable. The rating revision is driven by the robust growth in the companys operating income in 2013-14 and in the first 10 months of 2014-15, which has been accompanied by an expansion in its profit margins due to favourable raw material price movements. The company has also adopted a changed inventory policy, under which the company now procures inventory on the basis of expected consumption over the next 1-2 months, this has resulted in reduced working capital borrowings. The firms capital structure has also benefitted from equity infusion by the promoters. Higher profitability, coupled with lower debt and equity infusion has resulted in significant improvement in capitalization and debt coverage indicators. Further, the rating continues to factor in the promoters significant experience and long track record in mustard oil and related products; strong regional market presence in mustard oil segment; and favourable demand prospects for edible oil in India. However, the rating is constrained by the high business risks associated with the edible oil (and related products) industry including high competitive intensity and fragmentation; vulnerability of profitability of domestic edible oil players to import pressures and changes in duty differential between crude and refined oil; exposure to commodity price and agro-climatic risks and risks inherent in the partnership form of business. Going forward, sustainability of profitability notwithstanding the fluctuations in the commodity prices, efficient working capital management and capacity utilisation would be the key rating sensitivities. Further, any large debt funded capital expenditure would be a rating monitorable. Firm Profile SHI manufactures mustard oil and mustard cake and has mustard seed crushing capacity of 60,000 tonnes per annum (TPA). The firm was established as a partnership firm in 1959 and its operations are managed by the Aggarwal family. The firm mainly operates in the branded retail segment, primarily in the states of Bihar, Jharkhand, Orissa and the North-East, through its registered brand Engine. Recent Results The firm achieved an operating income of Rs. 195.90 crore with a Profit After Tax (PAT) of Rs. 3.71 crore in FY14, as against an operating income of Rs. 157.40 crore and a PAT of Rs. 1.14 crore in the previous year. As per estimates, the firm posted revenues of Rs. 183.92 crore in the first ten months of FY 15.

February 2015


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Long term rating revised for bank facilities of Ganga Papers India Ltd. to [ICRA]BB-; outlook on the long term rating is Stable

ICRA has revised its long term rating to [ICRA]BB- (pronounced ICRA double B minus) from [ICRA]BB (pronounced ICRA double B) and reaffirmed its short term rating at [ICRA]A4 (pronounced ICRA A four) on the Rs. 14.00 Cr.^ bank limits of Ganga Papers India Limited (GPIL). The outlook on the long term rating is Stable.

The revision in rating takes into account GPILs deterioration in financial profile as reflected by fall in profitability margins mainly owing to high foreign exchange losses incurred during the year as a significant proportion of raw material requirements are met through imports. The rating remains constrained by GPILs adverse capital structure along with modest debt protection metrics and the highly fragmented and competitive nature of the paper industry. The rating also takes into account the vulnerability of companys profitability to fluctuations in the prices of key input costs viz. raw material and power. The rating, however, continues to positively factor in the established track record of the promoters in the paper industry, GPILs diversified product portfolio and favourable demand prospects for paper industry over the medium term.

Company Profile GPIL (formerly Kasat Paper and Pulp Ltd) was incorporated in 1985. The company manufactures kraft paper and newsprint paper at its manufacturing facilities located in Pune, Maharashtra with total manufacturing capacity of 31000 metric tonnes per annum (MTPA). The company has 1.4 MW turbine primarily used for meeting captive power requirements. The company was initially promoted by Mr Shrikant Mohanlal Kasat in 1985 and was taken public in 1996. The company was declared sick company and was registered with BIFR in 2003 due to adverse operating conditions. The plant remained non-operational between 2003 and 2006. Under the BIFR rehabilitation programme, it was taken over by new promoters, Mr Ramesh Chaudhary and Mr. Sharwan Kumar Kanodia in 2006. The new promoters infused around Rs 30 Crore in the business in form of equity and unsecured loans. As a part of BIFR process, all the term loans were repaid while repayments under deferred sales tax scheme were deferred till 2018-19.

Recent Results As per its audited financials for 2013-14, GPIL reported a net profit of Rs. 1.30 crore on an operating income of Rs. 67.94 crore against a net profit of Rs. 2.62 crore on an operating income of Rs. 63.65 crore in the previous year.

February 2015 For further details please contact: Analyst Contacts: Mr. Sabyasachi Majumdar (Tel. No. +91 124 4545304) [email protected]

Relationship Contacts: Mr. Vivek Mathur (Tel. No. +91-124-4545310) [email protected]


For complete rating scale and definitions, please refer to ICRA's website www.icra.in or other ICRA Rating Publications

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Ratings of [ICRA]BB-/[ICRA]A4 reaffirmed on the bank facilities of Ganga Bag Udyog Pvt. Ltd.; Outlook on the long-term rating is Stable ICRA has reaffirmed its long term rating of [ICRA]BB- (pronounced ICRA double B minus) and short term rating of [ICRA]A4 (pronounced ICRA A four) on the Rs. 18.74 Cr.^ bank limits of Ganga Bag Udyog Private Limited (GBUPL). The outlook on the long term rating is Stable. The ratings reaffirmation factors in the favourable long-term demand prospects of HDPE bags and poly woven sacks from the fertiliser, cement industries and strong support from group companies which are also engaged in manufacturing of similar products. However the ratings remain constrained by the companys weak financial profile as characterised by low profitability margins, high gearing and modest debt coverage indicators and tight liquidity position as reflected by almost full utilisation of working capital limits. The ratings also factor in the vulnerability of profitability to fluctuations in polymer prices; high competitive intensity in the industry along with sector concentration risk as a major proportion of revenue is derived from fertiliser sector and companys low bargain power with its customers and suppliers. The ratings, however, continue to positively factor in the established track record of the promoters in the HDPE/PP woven sacks industry and established customer base in the fertilizer and cement sectors in Uttar Pradesh, with customer profile including large reputed customers. Company Profile GBUPL, incorporated as a proprietorship concern of Mr. R.K. Chaudhary in 1983 to supply jute bags to cement companies, was reconstituted in the year 1994 as a private limited company. Later, GBUPL began manufacturing and supplying plastic woven sacks to the fertiliser and cement industry in UP. In 2003, GBUPL inducted the Tulsyan family as directors and the company took over the plastic woven sacks manufacturing plant of Essel Mining at Jagdishpur, Lucknow. The plant was established as a unit of GBUPL under the name of Quality Packaging. Later, GBUPL established another unit by the name of Shree Packaging at Varanasi in the year 2005. Currently, GBUPL, through its sub-units Quality Packaging and Shree Packaging, is engaged in the manufacturing of various types of high density polyethylene (HDPE) as well as polypropylene (PP) bags and sacks, which are primarily supplied to fertiliser manufacturers in UP and neighbouring states. The combined capacity of the company is 17000 metric tonnes per annum (MTPA). Ganga Group is a collaboration of the Chaudhary and Tulsyan families. The group is engaged in various businesses: polywoven sacks through the entities GBUPL, Neel Kamal Polytex Industries Private Limited, Quality Woven Sacks Private Limited and RAS Polytex Private Limited; paper through the entities Ganga Papers India Limited and Ganga Pulp & Papers Private Limited; and sponge iron and billet manufacturing through Shanti Gopal Concast Limited. Recent Results As per its audited financials for 2013-14, GBUPL reported a net profit of Rs. 0.06 crore on an operating income of Rs. 86.79 crore against a net profit of Rs. 0.14 crore on an operating income of Rs. 89.77 crore in the previous year.

February 2015



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Ratings of [ICRA]BB/[ICRA]A4 reaffirmed on the bank facilities of Quality Woven Sacks Pvt. Ltd.; Outlook on the long-term rating is Stable ICRA has reaffirmed its long term rating of [ICRA]BB (pronounced ICRA double B) and short term rating of [ICRA]A4 (pronounced ICRA A four) on the Rs. 24.85 Cr.^ bank limits of Quality Woven Sacks Private Limited (QWSPL). The outlook on the long term rating is Stable. The ratings reaffirmation factors in the favourable long-term demand prospects of poly woven sacks from the cement industry and strong support from group companies which are also engaged in manufacturing of similar products. However, the ratings remain constrained by the companys financial profile as characterised by modest profitability margins, high gearing and moderate debt coverage indicators. The ratings also factor in the vulnerability of profitability to fluctuations in polymer prices; high competitive intensity in the industry along with companys low bargaining power with its customers and suppliers. The ratings, however, continue to positively factor in the established track record of the promoters in the HDPE/PP woven sacks industry and established customer base in the fertilizer and cement sectors in Madhya Pradesh, with customer profile including large reputed customers. Further, the company has fiscal benefits from the MP government, which leads to healthy profitability vis-a-vis other industry players. Company Profile QWSPL was incorporated in Rewa (MP) in 2007 by the Ganga Group, primarily to cater the needs of Maihar Cements Satna (MP) plant. The company manufactures polypropylene (PP) bags for the MP-based cement industry. QWSPL has a manufacturing capacity of 8000 metric tonnes per annum (MTPA). Ganga Group is a collaboration of the Chaudhary and Tulsyan families. The group is engaged in various businesses: polywoven sacks through the entities Ganga Bag Udyog Private Limited, Neel Kamal Polytex Industries Private Limited and Ras Polytex Private Limited; paper through the entities Ganga Papers India Limited and Ganga Pulp & Papers Private Limited; and sponge iron and billet manufacturing through Shanti Gopal Concast Limited. Recent Results In 2013-14, QWSPL reported a net profit of Rs. 0.44 crore on an operating income of Rs. 64.54 crore against a net profit of Rs. 0.37 crore on an operating income of Rs. 62.81 crore in the previous year.




I C R A Limited







Ratings of [ICRA]BB/[ICRA]A4 reaffirmed on the bank facilities of Ras Polytex Pvt. Ltd.; Outlook on the long-term rating is Stable ICRA has reaffirmed its long term rating of [ICRA]BB (pronounced ICRA double B) and short term rating of [ICRA]A4 (pronounced ICRA A four) on the Rs. 12.47 Cr.^ bank limits of Ras Polytex Private Limited (RPPL). The outlook on the long term rating is Stable. The ratings reaffirmation factors in the favourable long-term demand prospects of high density poly ethylene (HDPE) bags and poly woven sacks from the fertiliser, cement industries and strong support from group companies which are also engaged in manufacturing of similar products. However the ratings remain constrained by the companys financial profile as characterised by low profitability margins, high gearing, weak debt coverage indicators and tight liquidity position as reflected by almost full utilisation of working capital limits. The ratings also factor in the vulnerability of profitability to fluctuations in polymer prices; high competitive intensity in the industry along with companys low bargain power with its customers and suppliers. The ratings, however, continue to positively factor in the established track record of the promoters in the poly woven sacks industry and established customer base in the fertilizer and cement sectors in Uttar Pradesh, with customer profile including large reputed customers. Company Profile RPPL is a private limited company and was incorporated in the year 1999. The company is a part of the Ganga Group of companies and is promoted by Mr. R.K. Chaudhary. RPPL manufactures polypropylene (PP) bags primarily for the UP-based cement industry. The company was established at Varanasi (U.P.) to cater to the demand of the cement industries in that region. The company currently has a manufacturing capacity of 6,000 metric tonnes per annum (MTPA). Ganga Group is a collaboration of the Chaudhary and Tulsyan families. The group is engaged in various businesses: polywoven sacks through the entities RPPL, Ganga Bag Udyog Private Limited, Neel Kamal Polytex Industries Private Limited and Quality Woven Sacks Private Limited; paper through the entities Ganga Papers India Limited and Ganga Pulp & Papers Private Limited; and sponge iron and billet manufacturing through Shanti Gopal Concast Limited. Recent Results

As per its audited financials for 2013-14, RPPL reported a net profit of Rs. 0.58 crore on an operating income of Rs. 52.06 crore against a net profit of Rs. 0.99 crore on an operating income of Rs. 48.30 crore in the previous year.



For complete rating scale and definitions, please refer to ICRA's website www.icra.in or other ICRA Rating

Publications

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Rating of [ICRA]B- and [ICRA]A4 reaffirmed for bank facilities of Setmax Ceramic ICRA has reaffirmed the [ICRA]B- (pronounced as ICRA B minus) rating to the Rs. 2.78 crore

* (reduced from

Rs. 3.95 crore) term loan and Rs. 3.50 crore cash credit facility (enhanced from Rs. 2.50 crore) of Setmax Ceramic (SC)

. ICRA has also reaffirmed the [ICRA]A4 (pronounced ICRA A four) rating to the Rs. 1.50 crore

short term non-fund based bank guarantee facility (enhanced from Rs. 1.00 crore) of SC. The ratings reaffirmation continue to reflect the firms relatively small scale of operations, weak financial profile on account of its stretched liquidity position, moderate profitability indicators and adverse capital structure owing to debt funded capital expenditure. The ratings are further constrained by the competitive business environment in which the firm operates limiting improvement in realizations, single product portfolio limiting its ability to supply to institutional buyers and vulnerability of its profitability to cyclicality inherent in real estate industry and to adverse fluctuations in raw material & fuel prices. The ratings, however positively factors in the promoters extensive experience in the ceramic industry, and favorable location of the plant with its proximity to raw material sources. Company Profile Setmax Ceramic (SC) was established as partnership firm in 2010. It is currently managed by partners Mr. Hardik Ghodasara and Mr. Vinod Bhadja. The promoters have been involved in the ceramic industry for past many years through manufacturing and trading of ceramic products and have established SC to cater domestic porcelain tiles market. The firm is involved in manufacturing and supplying body clay with installed capacity of 91,250 MT per annum and manufacturing of porcelain floor tiles with installed capacity of 43,800 MT per annum. The commercial production of body clay was commenced in July 2010 while production of porcelain floor tiles commenced in April 2012. The manufacturing facility of SC i

icra rating press releases for march 12, 2015

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