Credit-Conversation-Jan2016

CRISIL Credit ConversationsVolume 9: November 2015 – January 2016
Ratings
notch-up Demand in
realty
Consolidation
trend
Signs of new
capex
Commodity
meltdown
Uday for
discoms Rating changes
&
New ratings
It’s a buoy! Distress support, that is
CRISIL notches up ratings based on the degree of distress
support expected from a parent or group -- or in some
cases, the government. The notch-up criteria is being
applied since 2001 and is based on two critical factors –
economic incentive and moral obligation. There are about
300 cases in CRISIL’s portfolio that are notched-up and
the rating stability rates are on par with CRISIL’s rated
portfolio. Based on past experience and after factoring for
inputs from market interactions, CRISIL has fine-tuned its
parent notch-up criteria in the following ways:
■■ For financial sector, the framework now lends
more weightage to moral obligation to factor in
the wider implications of any potential default
of a subsidiary on the parent’s access to funds.
Some examples include:
- Rating upgrade of Muthoot Housing Finance
(operates in affordable housing finance
segment; subsidiary of Muthoot Fincorp)
- Outlook revision for rating on SBI Global
Factors to ‘Negative’ from ‘Stable’ (NBFC
that offers domestic factoring, export and
import factoring; subsidiary of State Bank
of India). In this case the parent’s moral
obligation continues to be strong, leading to
reaffirmation of the rating. But the outlook
revision is driven by the company’s reduced
strategic importance for the parent
■■ For corporate sector, there is a higher focus on
the extent of economic benefit that the parent
derives from the current and future financial
performance of the subsidiary. Some examples
of upgrade include:
As we tip-toed into the New Year, the Chinese markets ensured that we sprint instead. That being the flavor of the
season, through this volume we would like to draw your attention to other important emerging trends and analysis. For
ease of reading, we have divided this volume into five sections covering themes like: rating changes driven by fine-
tuning of our notch-up criteria; trends seen in corporate India driven by consolidation, project stabilization or capex;
sector-specific developments; policy driven changes and some other key rating movements/assignments.
Steered by criteria re-visit: Ratings notch-up

CRISIL Credit Conversations
2
- L&T Shipbuilding (builds vessels and
undertakes ship repair; subsidiary of Larsen &
Toubro)
- Syngene International (offers research
services in medicinal chemistry and biology;
subsidiary of Biocon)
- Alliance Dental and Imperial Hospital (provides
dental care services and runs a tertiary care
hospital in Bengaluru respectively; both are
subsidiaries of Apollo Hospitals)
The criteria revision also resulted in downward rating
movements for:
- Nelco and its wholly owned subsidiary
Tatanet Services (provides electronic
systems and solutions; subsidiary of The
Tata Power Company)
- Kanti Bijlee Utpadan Nigam (generates
power; subsidiary of NTPC)
- Tayo Rolls (manufactures steel rolls;
subsidiary of Tata Steel)
- NED Energy (manufactures batteries
used in telecom; subsidiary of Time
Technoplast)
Overall, application of the revised criteria impacted ratings
of lesser than 15% of the notched-up cases.
Driven by design or by course: Consolidation, Stabilization or Capex
Cases of blender’s pride…
There were several instances of rating changes for
companiesthatannouncedconsolidationoramalgamation
of group companies/subsidiaries engaged in the same
line of business:
■■ Footwear maker VKC Group’s decision to
consolidate the operations of eight entities
under one of its divisions (all in the same line
of business) into one, called for a change in our
analytical approach to taking a consolidated
view for all the entities in that division. This
has resulted in a rating upgrade for Veekesy
Elastomers, Veekesy Footcare and Veekesy
Sandals, reflecting strengthening business risk
profile due to greater synergies from integrated
operations, common treasury, and a centralised
marketing and procurement team.
■■ The rating of Praj HiPurity Systems, which
makes and sets up water treatment plants,
was upgraded after it became a wholly owned
subsidiary of Praj Industries. The upgrade is in
view of the resultant expected improvement in
the company’s market position on account of
strong operational, financial and managerial
support from Praj Industries.
■■ The announcement of amalgamation of
Huhtamaki PPL with its wholly owned subsidiary,
Positive Packaging Industries (manufactures
laminated and other films) has resulted in an
outlookrevisionto‘Positive’forPositivePackaging
Industries. The ratings will match on completion
of the amalgamation since it is expected to give
access to cash flows of Huhtamaki PPL.
■■ Ratings of nineteen Malabar group companies
(jewellery retailer) have been placed on ‘Watch
Developing’ following a communication by the
Malabar group on consolidation of the jewellery
business under Malabar Gold Pvt Ltd. Currently,
the Malabar Group operates under a franchisee
model where each showroom is a separate firm
with multiple shareholders.
■■ The ‘CRISIL BB’ rating of Sistema Shyam
Teleservices has been placed on ‘Watch
Developing’ postthesigningofbindingdocuments
providing for the demerger of the company’s
telecom business and its merger with the
telecom business of Reliance Communications,
which is expected to strengthen the data play of
the combined entity.

3
■■ Agrochemicals maker UPL’s proposed merger
with Advanta Ltd, an associate company
manufacturing seeds, has no adverse impact on
UPL’s ratings since the debt protection metrics
of the combined entity is expected to remain
healthy. Advanta will complement UPL’s existing
portfolio.
But the rating movements have not been positive or
benign in all the cases. For example, after the completion
of amalgamation of Torrent Energy and Torrent Cables
with Torrent Power, the rating of Torrent Power was
downgraded following deterioration in financial risk profile.
That’s because Torrent Energy has high debt which is
not commensurate with its ability to generate cash in the
absence of power purchase agreements.
Stability is a positive, mostly
Taking forward the theme we discussed in Credit
Conversations, Volume 6, we continue to notice a positive
impact of stabilisation of completed projects, and/or
diversification into new segments/geographies on the
credit profiles of companies. To wit:
■■ The outlook on ONGC Tripura Power Company
was revised to ‘Positive’ from ‘Stable’ following
stabilisation of gas turbine power generation
units leading to higher availability.
■■ Higher capacity utilisation, increasing
geographical diversification and better average
realisation at Cement Manufacturing Company’s
group entities that are into cement manufacturing,
resulted in the outlook revision to ‘Positive’ from
‘Stable’ for its ratings.
■■ Improved product and geographic diversity has
led to the rating upgrade of Hamilton Housewares
(sells plastic ware and glass ware under Milton &
Treo brands).
■■ The outlook was revised to ‘Positive’ for the
ratings of Arjuna Natural Extracts (manufactures
herbal as well as other natural extracts used in
making food supplements) given the improved
product and geographic diversity and increase in
scale of operations.
Then there is the flipside: Investments in stabilization
of new capacity has led to margin pressures for Kalyani
Forge that manufactures forged products. This combined
with competitive pricing and promotional expenses for
new products led to the outlook revision for its rating to
‘Negative’ from ‘Stable’.
Signs of new capex
In times where corporate capital spending has slowed
down, there are a few companies who have recently
announced new capex or incurred capex higher than
anticipated. This had a mixed impact on their ratings. To
wit:
■■ Chambal Fertilisers & Chemicals announced
a very large capacity expansion (amounting to
about Rs.6,000 crore) for its urea plant. CRISIL
has reaffirmed its rating after taking into account
this announcement. The brownfield expansion
is expected to be commissioned in fiscal 2019.
The reason for the reaffirmation is the fixed-price
nature of lump sum turnkey (LSTK) contract, with
liquidated damages to be paid by the contractor
in case of delay, which mitigate the construction
and implementation risks associated with the
project. The feedstock risks are also mitigated
with the gas pooling policy announced by the
government, while demand risks for expansion
are mitigated by government’s objective of
achieving self-sufficiency in urea production.
The reaffirmation also factored management’s
strong commitment towards sale of part or whole
of the non-fertiliser business to partly fund the
equity requirements of the project.
■■ On the other hand, announcement of new
capex of around Rs.1,300 crore has led to the
outlook revision to ‘Negative’ from ‘Stable’ for the
ratings of two entities in the Himatsingka Group
(manufactures silk and silk-blended drapery/
upholstery fabrics).
■■ Higher than expected capital expenditure and
stretch in working capital cycle has led to outlook
revision to ‘Negative’ from ‘Stable’ for Highway
Industries (manufactures crankshafts and
connecting rods for automobiles and consumer
durables).

4
In realty, demand is the deity to please
A CRISIL analysis of India’s top 25 realtors, accounting
for 95% of the market capitalisation of India’s real estate
sector, shows that as much as Rs 30,000 crore of debt
obligations will face high refinancing risk in the near
term. To add to woes, real estate players have already
leveraged on their operational commercial portfolio, and
banks, the primary fund source, have turned wary. In
the interim, realtors have resorted to expensive funding
through NCDs and private equity. Unless demand picks
up substantially, the refinancing risks will only increase
given the high return expectations of NCD investors and
PEs.
For details, please visit http://www.crisil.com/the-realty-
reality/index.html
Still playing commodity meltdown blues
The falling commodity prices continue to impact
outstanding ratings in the steel and sugar industries. To
wit:
■■ Reduced steel realizations combined with a
delay in asset monetisation and equity raising
plan of the company, has resulted in a further
downgrade of Jindal Steel & Power. Moreover,
CRISIL believes that due to the weak operating
performance, there will be a breach in covenants
for part of NCD issuances which can lead to
sharp deterioration in the company’s credit
quality. Hence the ratings have also been placed
on ‘Watch Negative’.
■■ Subdued demand and lower steel prices also led
to the rating downgrade of Rashtriya Ispat Nigam
(manufactures steel).
■■ CRISIL’s analysis shows that given surging
imports, falling prices and poor demand, every
third secondary steel manufacturer (about 70
in CRISIL portfolio) is vulnerable to stress in
its credit risk profile. Another flank of worry for
these players is the shifting focus of large steel
players to long products. Standalone billet/
ingot manufacturers and non-integrated TMT
manufacturers, who are at the bottom of the
value chain are likely to be most impacted.
■■ The double whammy of high cane costs and low
sugar prices has had a negative impact on the
ratings of Harinagar Sugar Mills and E.I.D. Parry
India.
The outlook was revised to ‘Negative’ from ‘Stable’
for Nava Bharat Ventures, which operates in both the
stressed segments of ferroalloy and sugar.
Double distress in the graveyard of ships
While ship-breakers continue to face adverse currency
movement, there is now also a meltdown in steel prices.
The issue was exacerbated when China moved to de
facto devalue the yuan in August 2015. Despite the
operating discipline and reduction in the average number
of ships dismantled, the industry has taken a knock on
account of the combination of forex and inventory loss.
CRISIL-rated ship-breakers did not face rating pressure
when they were incurring only forex losses because of
timely promoter funding, prudential lending practices,
ability to convert inventory to cash and their disciplined
cash management. While ratings of companies having
deep-pocketed promoters still continue to hold, ratings
of ship-breakers including four entities of the Shree Ram
Group have been downgraded, while the outlook has
been revised to ‘Negative’ for ratings of four Mahavir
group entities.
A lot to beam about in radio
In the backdrop of Phase III auctions, the revenues of the
FM radio industry is expected to double in the next five
years to about Rs 3,900 crore from Rs 2,000 crore in 2015
since FM radio can now reach 85% of the Indian territory
and cover 294 cities against 86 as on date, thereby
providing a fillip to ad revenues. Provisions such as longer
license period, ownership of multiple frequencies in one
city and sharing of network infrastructure for multiple
frequencies will support profitability of radio players.
To each his own: Getting sector specific

5
Capital expenditure under Phase III has already been
factored into the ratings of CRISIL-rated FM radio players
including Entertainment Network (brand name ‘Radio
Mirchi’), HT Media (brand name ‘Fever’), Music Broadcast
(brand name ‘Radio City’) and TV Today Network (brand
name ‘Oye FM’). Hence no immediate impact of Phase III
is expected on CRISIL rated FM radio players.
For details, please visit http://www.crisil.com/pdf/ratings/
CRISIL-Ratings-Report-FM-radio-27Oct2015.pdf
When consumers lend the leg-up
Recently, we have seen positive rating changes in the
consumer segment, specifically the ones that carry a high
brand recognition. Some such cases are enlisted below:
■■ The outlook on rating of Berger Paints was
revised to ‘Positive’ from ‘Stable’ based on
healthy demand potential and strong market
position.
■■ The outlook on the rating of Pidilite, the owner
of the ‘Fevicol’ brand among others, was
recently revised to ‘Positive’ from ‘Stable’ since
it is expected to maintain robust operating
performance given its list of established brands.
■■ Scaling up of operations has led to an outlook
revision to ‘Positive’ from ‘Stable’ for the rating
on Lifestyle International (part of the Landmark
group and runs departmental stores including
Lifestyle Home Centre and Max. The group has
business interests mainly in Middle East retail
segment).
■■ Sustenance of healthy revenue growth along
with improvement in profitability margin has led
to a rating upgrade for Samsonite South Asia
(sells luggage products under the Samsonite
and American Tourister brands).
■■ Growth in the company’s revenues resulted in
the rating upgrade of Baazar Retail (operates
retail stores that trade mainly in garments and
toys).
Education is elevating indeed
We are seeing greater stability in the credit profiles of
well established education trusts which is reflected in the
recent outlook revisions to ‘Positive’ from ‘Stable’ for the
following:
■■ Greenwood High Trust (runs a pre-school and
an international school in Bangalore) is expected
to benefit from the steady growth in scale of
operations backed by its established position.
■■ In the case of Nitte Education Trust, Mangalore
(runs a school and offers undergraduate,
postgraduate and polytechnic courses), the
outlook revision is driven by its healthy visibility
in student community, high occupancy levels and
its ability to revise the fee structure from time to
time.
Auto component firms shifting to cruise
mode
In addition to the recent upgrades in the auto component
segment as covered in our previous volumes, the following
have seen positive rating movements:
■■ Apollo Tyres was recently upgraded based on
expectation of healthy cash accrual backed by
increased demand despite the capex plans and
the likely decline in margins due to competition
from Chinese players.
■■ The outlook was revised to ‘Positive’ from
‘Stable’ and the short-term rating upgraded for
Paranjape Autocast, on account of increase in
sales volumes to key customers.
■■ Expected growth in operating income over the
medium term supported by the commencement
of a new plant has led to outlook revision to
‘Positive’ from ‘Stable for A.A. Autotech and ASK
Automotive.

6
Key rating movements
When loan groans get louder…
■■ Continued deterioration in asset quality and
profitability, and the expectation of stress in asset
quality in the near term has resulted in a fresh
downgrade in the ratings of Indian Overseas
Bank and Bank of Maharashtra.
When business case improves…
■■ The advantage expected from healthy and
improved order-book position has driven rating
upgrades of Techno Electric and Engg Co
(undertakes turnkey EPC projects predominantly
in power sector).
■■ Even as the wholesale lending business scales
up, the JM Financial group has maintained
healthy capitalisation and conservative gearing
philosophy leading to group entities being
upgraded.
■■ The rating of SP Singla Constructions (constructs
bridges and flyovers) was upgraded given that
its established market position enabled it to bid
for large value projects and build a healthy order
book.
Global parentage drives local changes
■■ Rating of Citicorp Finance India (primarily
finances commercial vehicles and construction
equipment) was recently upgraded to ‘CRISIL
AAA/Stable’ reflecting CRISIL’s belief that the
company will continue to be held mainly by
Citibank N.A. (rated ‘A/Watch Positive/A-1’
by S&P) and that support, if required, will be
made available primarily by Citibank N.A. The
revision also factors in the company’s increased
strategic importance to, and strong linkages with,
Citibank’s India operations (Citibank India).
Staying unruffled amid transformation
Recently, RBI has given in-principle approval to non-
banks to transform into small finance banks (SFBs). The
key for such players is their ability to raise equity from
domestic investors since this shall have triple benefits:
■■ Satisfaction of regulatory requirement of
domestic shareholding.
■■ Access to more funds through inter-bank
liabilities.
■■ Initial strong capitalisation helping offset fall in
profitability.
Another important factor is the ability of SFBs to develop
a deposit franchise to support growth and fund statutory
liquidity ratio and cash reserve ratio requirements. Five
such CRISIL rated players (Au Financiers India, Equitas
Micro Finance, Equitas Finance, Janalakshmi Financial
Services and Ujjivan Financial Services) are well-
positioned to manage the path to transformation.
Finally, sunrise for discoms
The Ujwal Discom Assurance Yojana, or UDAY, scheme,
when implemented has a potential to significantly reduce
the losses of discoms by fiscal 2018. UDAY is expected
to target the root of the problem by making states
accountable for efficiency improvement, timely and cost-
reflective tariff hikes and also by converting discom debt
to state bonds. Effective implementation will be the key.
At the same time, UDAY shall marginally affect the credit
metrics of states and reduce their financial flexibility on
account of increase in indebtedness, additional interest
burden and absorption of losses.
Adding facets to the credit story: Highlighting few more ratings
Reaching new horizons: Policy as propeller

7
Pawan Agrawal
Chief Analytical Officer - CRISIL Ratings
Email: pawan.agrawal@crisil.com
■■ The outlook for the rating of Standard Chartered
Investment and Loans India (primarily focuses
on segments such as promoter financing, lease
rental discounting and other secured corporate
loans) was revised to ‘Negative’ from ‘Stable’
following a similar revision in rating outlook for
its ultimate parent, Standard Chartered Plc.
New rating assignments
‘CRISIL A’ category rating was assigned to Trident
(manufactures cotton yarn and terry towels), ZCL
Chemicals (manufactures and exports pharmaceutical
chemical compounds), Kapoor Industries (manufactures
terry towels), Navkar Terminals (operates a container
freight station at JNPT port), Bombay Intelligence Security
India (provides manned guarding, cash management
and facility management services), Koneru Lakshmaiah
Education Foundation (offers courses in engineering,
business management, and law) and Mahatma Gandhi
Mission (provides education across fields).
A ‘CRISIL AA/Stable’ rating was assigned to Phoenix
ARC, having Rs 3,170 crore of managed security
receipts as on September 30, 2015 and Rs 318 crore of
security receipts on its balance sheet. The rating factors
in expectation of strong support from Phoenix’s sponsor
and largest shareholder, the Kotak group, both on an
ongoing basis and in times of distress.
The short term rating of ‘CRISIL A1’ was assigned to
National Bulk Handling Corporation, which provides agri-
warehousing and allied services in India. And a ‘CRISIL
A1+(SO)’ rating was assigned to Tata Power Trading
Company that facilitates trading of surplus power. The
(SO) symbol denotes the strength of the unconditional
and irrevocable guarantee extended by the parent, The
Tata Power Company Ltd, together with a payment
mechanism.

8
Annexures
Annexure 1: It’s a buoy! Distress support, that is
Company Name Rating Rating action About the company
Muthoot Housing Finance
Company Limited
CRISIL A-/Stable Upgrade The company operates in the affordable housing
finance segment.
SBI Global Factors Ltd CRISIL AAA/
Negative/CRISIL
A1+
Outlook revised to ‘Negative’
from ‘Stable’
Registered NBFC that offers domestic factoring,
export and import factoring, and discounting of
bills under letter of credit services to SMEs.
L&T Shipbuilding Ltd CRISIL AA-/CRISIL
AAA(SO)/Stable/
CRISIL A1+
Upgrade The company was set up to develop a shipyard
for construction and repair of defence and
commercial vessels and to set up a minor port.
It started commercial operations in December
2012.
Syngene International Ltd CRISIL AA/Stable/
CRISIL A1+
Upgrade The company is one of India’s leading contract
research organizations that offers research
services in medicinal chemistry and biology in
early stages of drug discovery.
Alliance Dental Care Ltd CRISIL A/Stable Upgrade The company offers dental care services across
three formats: spas, clinics and express centres.
Imperial Hospital and
Research Centre Ltd
CRISIL A+/Stable Upgrade The company is currently a 269-bed tertiary-
care facility in Bengaluru focused on a number
of specialities, mainly oncology and cardiology.
NELCO Ltd and its
100% subsidiary Tatanet
Services Ltd
CRISIL BBB+/
Stable/CRISIL A2
Downgrade The company operates broadly under two
verticals: automation and control division, and
network systems division.
Kanti Bijlee Utpadan
Nigam Ltd
CRISIL BBB-/
Negative/CRISIL A3
Downgrade
(The subsequent outlook
revision to ‘Negative’ was
done subsequently due to
project implementation risks)
The company is a JV between NTPC (65%) and
Bihar State Power Generating Company Ltd (35
percent). The company has two power plants
– one is vintage and the other is a brownfield
expansion presently under implementation.
Tayo Rolls Ltd CRISIL B/ FB/
Stable/CRISIL A4
Downgrade The company manufactures steel rolls of various
steel alloy grades and sizes.
NED Energy Ltd CRISIL BBB+/
Negative/CRISIL A2
Downgrade The company manufactures valve-regulated
lead acid batteries that are primarily used in the
telecom industry.
Annexure 2: Cases of belender’s pride…
Veekesy Elastomers Pvt Ltd
Veekesy Footcare India Pvt Ltd
Veekesy Sandals India Pvt Ltd
CRISIL A-/Stable Upgrade Div-I of the group that has now been
consolidated manufactures PU footwear, mostly
sandals, slippers, and floaters, for men, women,
and children. The brands marketed by Div-I are
VKC Pride, U4IC, Walkaroo, VKC Lite, and VKC
Junior.
Praj HiPurity Systems Ltd CRISIL A+/Stable/
CRISIL A1
Upgrade The company manufactures and sets up water
treatment plants and modular process systems.

9
Positive Packaging Industries
Ltd
CRISIL A+/Positive/
CRISIL A1
Outlook revised
to ‘Positive’ from
‘Stable’
The company manufactures multi-layer
laminated, printed, and metallised films.
Malabar group companies (19)
(So far each showroom has
operated as a separate firm)
CRISIL BBB/Watch
Developing
CRISIL BBB-/Watch
Developing
CRISIL BB+/Watch
Developing
CRISIL BB/Watch
Developing
CRISIL BB-/Watch
Developing
Ratings placed on
‘Watch Developing’
Malabar Group is a leading jewellery retailer in
India.
Sistema Shyam TeleServices
Ltd
CRISIL BB/Watch
Developing
Ratings placed on
‘Watch Developing’
The company operates its telecom services in
India under the MTS brand using the CDMA
technology; it provides mobile broadband
services under the MBlaze brand.
UPL Ltd CRISIL AA+/Stable/
CRISIL A1+
Reaffirmed The company is engaged in the manufacturing,
research, marketing, and distribution of crop
protection products, intermediates, specialty
chemicals, and other industrial chemicals.
Torrent Power Ltd CRISIL AA-/Stable/
CRISIL A1+
Downgraded and
removed from
‘Watch Negative’
The company is engaged in the power generation
and distribution business, mainly in Ahmedabad,
Gandhinagar, and Surat, and is the distribution
franchisee for Bhiwandi and Agra.
Annexure 3: Stability is a positive
ONGC Tripura Power Company
Limited
CRISIL A+/Positive Outlook revised
‘Stable’
The company is a JV of ONGC, IL&FS Energy
Development Company Ltd and the Government
of Tripura and is implementing a 726.6 MW
combined cycle gas turbine power project in
Palatana (Tripura).
Cement Manufacturing
Company Ltd and three other
group companies
CRISIL A/Positive/
CRISIL A1
Outlook revised
‘Stable’
The company is a part of the Cement
Manufacturing Company Ltd group. The
group is into cement manufacturing, clinker
manufacturing and has a captive power plant.
Hamilton Housewares Pvt Ltd CRISIL AA-/Stable/
CRISIL A1+
Upgrade The company sells plasticware, thermoware,
glassware, and melamineware under the Milton
and Treo brands.
Arjuna Natural Extracts Ltd CRISIL A-/Positive/
CRISIL A2+
Outlook revised
‘Stable’
The company manufactures herbal and other
natural extracts which primarily find application
in the manufacture of food supplements.
Kalyani Forge Ltd CRISIL A-/Negative/
CRISIL A2+
Outlook revised
to ‘Negative’ from
‘Stable’
The company manufactures high-quality hot,
warm, and cold-forged products.

10
Annexure 4: Signs of new capex
Chambal Fertilisers and
Chemicals Ltd
CRISIL AA-/FAA/Stable/
CRISIL A1+
Reaffirmed Chambal in Kota (Rajasthan) has the largest
installed urea capacity in the private sector in
India.
Himatsingka Seide
Limited
Himatsingka Wovens
Private Limited
CRISIL A-/Negative/
CRISIL A2+
CRISIL A-/Negative
Outlook revised to
‘Negative’ from ‘Stable’
The group has been a leading manufacturer
and the largest exporter of silk and silk-blended
drapery and upholstery fabrics in India.
Highway Industries Ltd CRISIL A+/Negative/
CRISIL A1
Outlook revised to
The company manufactures crankshafts,
connecting rods, kick-starters, pistons for
automobiles, and consumer durables.
Annexure 5: Still playing commodity meltdown blues
Jindal Steel & Power Ltd CRISIL BBB+/Watch
Negative/CRISIL A3+/
Watch Negative
Downgrade and placed
on ‘Watch Negative’
The JSPL group, a part of the USD 18 billion
diversified OP Jindal group, is one of India’s key
steel producers, and has a sizeable presence in
power generation and mining.
Rashtriya Ispat Nigam Ltd CRISIL A+/Negative Downgrade The company is wholly owned by the
Government of India. It is the corporate entity
of Visakhapatnam Steel Plant, and is one of
the largest players in the domestic long steel
products segment.
Harinagar Sugar Mills Ltd CRISIL BBB+/Negative/
CRISIL A3+
Downgrade The company has a sugar mill and has recently
integrated its operations by adding a distillery
and a co-gen power plant.
E.I.D. Parry India Ltd and
two subsidiaries
CRISIL A+/Stable/
CRISIL A1+
Downgrade The company is in sugar manufacturing.
Nava Bharat Ventures
Limited
CRISIL A+/Negative/
CRISIL A1
Outlook revised to
The company has three key business divisions:
ferroalloys, power, and sugar.

11
Annexure 6: Double distress in the graveyard of ships
R.K.Industries (Unit II) and
three other Shree Ram
group entities
CRISIL BBB-/Stable/
CRISIL A3
Downgrade Bhavnagar (Gujarat)-based Shree Ram group
is engaged in ship-breaking at Alang port
(Gujarat).
Mahavir Inductomelt
Private Limited and three
other Mahavir group
entities
CRISIL BBB-/Negative/
CRISIL A3
Outlook revised to
The Mahavir group undertakes ship-breaking
activities at Alang-Sosiya Ship Recycling Yard
in Gujarat and has a rolling mill.
Annexure 7: When consumers lend the leg-up: In retail segment, specifically
the branded segment
Berger Paints India Ltd CRISIL AA+/Positive/
CRISIL A1+
Outlook revised to
‘Positive’ from ‘Stable’
The company manufactures paints and
varnishes, and is present in all product
segments.
Pidilite Industries Ltd CRISIL AA+/Positive/
CRISIL A1+
Outlook revised to
The two main divisions are pigment emulsions
and adhesives. Besides the mother brand,
Fevicol, Pidilite's prominent brands include
Steelgrip, Dr. Fixit, M-seal, Fevicryl, Fevikwik,
Fevistik, Fevilite, Fevibond, and Acron.
Lifestyle International Pvt
Ltd
CRISIL A+/Positive/
CRISIL A1+
Outlook revised to
The company is a part of the Landmark group
and the Lifestyle departmental stores, Home
Centre outlets, and Max stores had combined
retail space of 4.68 million square feet as on
September 30, 2015.
Samsonite South Asia Pvt
Ltd
CRISIL AA-/Stable/
CRISIL A1+
Upgrade The company manufactures hard luggage, and
trades in soft luggage. It primarily sells products
under the brands - Samsonite, American
Tourister, Black Label, and High Sierra.
Baazar Retail Ltd CRISIL A-/Stable/
CRISIL A2+
Upgrade The company currently operates 37 retail stores
across West Bengal, Odisha, Uttar Pradesh,
Bihar, Tripura, Jharkhand, and Gujarat.

12
Annexure 8: Education is elevating indeed
Greenwood High Trust CRISIL A-/Positive Outlook revised to
It operates a pre-school and an international
school under the banner of Greenwood High
in Karnataka. GHT offers education from pre-
nursery to higher secondary.
Nitte Education Trust CRISIL A/Positive/
CRISIL A1
Outlook revised to
Nitte, located in Mangalore, offers undergraduate
and post-graduate courses in medicine,
engineering, nursing, physiotherapy, and
business management; it also offers polytechnic
courses and has schools offering primary,
secondary, and pre-university education.
Annexure 9: Auto component firms shifting to cruise mode
Apollo Tyres Ltd CRISIL AA+/Stable/
CRISIL A1+
Upgrade Apollo manufactures automotive bias and radial
tyres, and tubes.
Paranjape Autocast Private
Limited
CRISIL A-/Positive/
CRISIL A1
Outlook revised
‘Stable’ and short
term rating upgrade
The company casts auto components for the
two- and three-wheeler industry, diesel engines,
and hydraulic systems.
A.A. Autotech Private Limited
ASK Automotive Private
Limited
CRISIL A/Positive/
CRISIL A1
CRISIL A+/Positive/
CRISIL A1
Outlook revised
‘Stable’
The company manufactures automotive
components used in two-wheeler drum braking
systems.
Annexure 10: Key rating movements
When loans groans get louder
Indian Overseas Bank CRISIL AA-/CRISIL
A+/FAA+/Negative/
CRISIL A1+
Downgrade Headquartered in Chennai, the bank had 3,399
domestic branches, 8 overseas branches, and
3 representative offices as on September 30,
2015.
Bank of Maharashtra CRISIL AA/CRISIL
AA-/CRISIL A+/
Negative/CRISIL A1+
Downgrade BoM is a medium-size PSB, with assets
aggregating Rs.1,498 billion, a network of 1,880
branches, and 1,850 ATMs as on June 30, 2015.
When business case improves
Techno Electric and Engg Co
Limited
CRISIL AA-/Stable/
CRISIL A1+
Upgrade The company undertakes turnkey EPC projects
predominantly in the power sector across all
three segments - generation, transmission, and
distribution.

13
JM Financial group companies CRISIL AA/Stable/
CRISIL A1+
Upgrade The JM Financial group has interests in
investment banking, retail and institutional
equity broking, wealth management, investment
advisory services, portfolio management, asset
management, commodity broking, securities-
based lending, corporate lending, private equity,
and asset reconstruction.
SP Singla Constructions Private
Ltd
CRISIL A-/Stable/
CRISIL A2+
Upgrade The company’s activities include investigative
works, designing, engineering, and constructing
bridges over rivers.
Global parentage drives local changes
Citicorp Finance India Ltd CRISIL AAA/Stable/
CRISIL A1+
Upgrade The company primarily finances commercial
vehicles and construction equipment and also
offers corporate finance and loans against
securities.
Standard Chartered
Investments and Loans India
Ltd
CRISIL AA+/Negative/
CRISIL A1+
Rating outlook
revised to
‘Negative’ from
‘Stable’
The company is registered with RBI as a non-
deposit-taking, systemically-important, NBFC. It
primarily focuses on segments such as promoter
financing, lease rental discounting and other
secured corporate loans.
Annexure 11: New rating assignments
Name Rating assigned About the company
Trident Ltd CRISIL A-/Stable/CRISIL A2+ The company, headquartered in Ludhiana (Punjab),
manufactures cotton yarn and terry towels.
ZCL Chemicals Ltd CRISIL A-/Stable/CRISIL A2+ The company manufactures and exports various
pharmaceutical chemical compounds.
Kapoor Industries Ltd CRISIL A/Stable/CRISIL A1 The company is engaged in manufacturing terry towels at its
facility in Panipat (Haryana).
Navkar Terminals Ltd CRISIL A/Stable/CRISIL A1 It operates a Container Freight Station at JNPT port.
Bombay Intelligence Security India
Ltd
CRISIL A-/Stable The company provides manned guarding, cash management
and facility management services.
Koneru Lakshmaiah Education
Foundation
CRISIL A+/Stable The Koneru Lakshmaiah Charities, established as a trust
in 1980, set up the KL College of Engineering (KLCE) in
academic year 1980-81 in Vijayawada (Andhra Pradesh).
KLCE was recognised as a deemed university in 2009. It
offers courses in engineering, business management, and
law.

14
Mahatma Gandhi Mission CRISIL A-/Stable/CRISIL A2+ It is a Nanded-based public charitable trust providing
education in medical, engineering, architecture, nursing,
management, computer science and IT, bioinformatics
and biotechnology, fine arts and journalism apart from
running eight hospitals including teaching hospitals. The
trust presently runs over 50 institutions in Maharashtra and
Noida.
Phoenix ARC Private Ltd CRISIL AA/Stable Phoenix has acquired dues worth Rs.115.0 billion till
September 30, 2015, with SRs issued of Rs.43.2 billion. As
on September 30, 2015, the company had managed SRs
of Rs.31.7 billion, holding SRs of Rs.3.18 billion on its own
balance sheet.
National Bulk Handling Corporation
Private Limited
CRISIL A1 The company provides agri-warehousing and allied services
in India with presence in 23 states and presence at more
than 600 locations.
Tata Power Trading Company Ltd CRISIL A1+(SO) The company facilitates the trading of surplus power
sourced from various states and private-sector power
generation utilities, captive power plants and state-owned
electricity boards. Its trading partners include almost all the
state utilities.
Name Rating assigned About the company

15
About CRISIL Limited
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India’s
leading ratings agency. We are also the foremost provider of high-end research to the world’s largest banks and leading
corporations.
About CRISIL Ratings
CRISIL Ratings is India’s leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition
of independence, analytical rigour and innovation, we have a leadership position. We have rated over 95,000 entities, by
far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank
loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-
backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards
in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal
bonds, partially guaranteed instruments, microfinance institutions and voluntary organizations. We pioneered a globally
unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the
market for ratings and is improving SMEs’ access to affordable finance. We have an active outreach programme with
issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate
our analytical insights and knowledge.
CRISIL Privacy Notice
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and
service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may
find of interest.
For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/
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Last updated: August 2014

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