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Key Credit Brief

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Key Credit Brief

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Please click here to check the Holdings in our Fixed Income Funds or refer to page no 25

Sr no: Credit Papers Ratings Page no.

New Credits taken in the month of February

1 K Raheja IT Park (Hyderabad) Ltd. IND AAA(SO) 3

2 S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd)

CARE AA+(SO) 3

3 Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal Fund Management Pvt Ltd)

BWR AA-(SO) 4

Existing Credit

4 Altico Capital India Private Limited IND AA-/A1+ 4

5 Adani Ports and Special Economic Zone Ltd ICRA AA+/A1+ 6

6 Adani Power BWR AA-(SO) 6

7 Adani Transmission Ltd IND AA+/A1 7

8 Asirvad Microfinance Pvt. Ltd CRISIL A+ 7

9 Aspire Home Finance Corporation Ltd ICRA AA- 7

10 Aasan Corporate solution Pvt Ltd ICRA A+(SO) 6

11 AU Financiers Ltd. FITCH A+(IND) 8

12 Bahadur Chand Investments Private Limited ICRA AA 4

13 Bharti Enterprises (Holdings) Pvt. Ltd .(BEHPL) CRISIL A1+ 8

14 Camden Industries Ltd.(backed by unconditional and irrevocable undertaking of Axis Capital)

CARE AAA(SO) 8

15 Continental Drug Company Pvt Ltd / Edison Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee Ltd )

BWR A+(SO) 9

16 Dalmia Cement Bharat Ltd ICRA AA/A1+ 9

17 Dewan Housing Finance Corp Ltd CARE AAA/A1+ 10

18 Deutsche Bank CRISIL A1+ 10

19 DLF Emporio Ltd CRISIL AA(SO) 10

20 East-North Interconnection Company Limited AAA(SO) 11

21 ECL Finance Ltd CARE AA 11

22 Edelweiss Agri Value Chain Limited ICRA AA/A1+ 12

23 Equitas Micro Finance Pvt. Ltd. CARE A 12

24 Essel Lucknow Raibareli Toll Roads Limited IND AAA(SO) 12

25 Ford Credit India Private Limited IND A1+ 13

26 Fullerton India Credit Co. Ltd. CARE AAA 13

27 Haldhar Developers Pvt Ltd ICRA AA-(SO) 13

28 Hero Realty Ltd ICRA A+(SO) 14

29 HPCL Mittal Energy Ltd. and HPCL Mittal Pipelines ICRA & IND AA 14

30 IIFL Wealth Finance Ltd (IWFL) ICRA AA/A1+ 14

31 India Infoline Finance Ltd CRISIL AA-/A1+ 15

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32 Indostar Capital Finance CARE AA- 15

33 Inox Air Products CRISIL AA/A1+ 15

34 Intime Properties Ltd. FITCH AAA(SO) 16

35 IOT Utkal Energy Services Ltd CRISIL AAA(SO) 16

36 Janalakshmi Financial Services ICRA A+ 16

37 Karelides Traders Private Limited ICRA AA- (SO) 17

38 Kolte-Patil Developers Limited CRISIL A+ 17

39 Manappuram Finance Ltd CARE AA/ A1+ 18

40 Mandava Holdings Pvt Ltd ICRA AAA 18

41 Muthoot Fincorp Ltd CRISIL A- 18

42 Nabha Power Ltd ICRA & CRISIL AAA(SO) 18

43 NirChem Limited CRISIL AA 05

44 Peninsula Land Ltd. ICRA A/ICRA A1+ 19

45 Powergrid Vizag Transmission Ltd. CRISIL AAA(SO) 19

46 Prestige Estates Projects Ltd ICRA A+ 19

47 Pune Solapur Expressways Pvt. Ltd. ICRA A(SO) 20

48 Reliance Utilities and Power Pvt. Ltd. CRISIL AAA 20

49 Sadbhav Engineering Ltd CARE A+/A1+ 21

50 Sahyadri Agencies Ltd. BWR A(SO) 21

51 SBK Properties Pvt. Ltd. ICRA AA- 21

52 Shapoorji Pallonji Energy Gujarat Private Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd )

ICRA AA(SO) 22

53 Shapoorji Pallonji Finance Private Limited CRISIL AA-/A1+ 05

54 Sneha Abasan Pvt Ltd/ Sneha Enclave Pvt Ltd / Emami Enclave Maker Pvt Ltd/ Emami Realty Ltd./ Bhanu Vyapaar Pvt. Ltd.

BWR & IND AA-(SO) 22

55 SP Jammu Udhampur Highways Ltd ICRA AAA(SO)) 22

56 Suraksha Realty Ltd CARE A1+ 23

57 Tata Motors Finance Solutions CRISIL AA/ ICRA A1+ 23

58 Tata Power Ltd. CARE AA/A1+ 23

59 Holdings in our Fixed Income Funds as of 28th Feb 2017 25

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New Credits taken in the month of February

K Raheja IT Park (Hyderabad) Ltd. (AAA(SO) by India Ratings)

K Raheja IT Park (Hyderabad) Limited (“KRIT” or “the Company” or “the Issuer”) is part of the K Raheja Corp Group, a Mumbai based real estate developer promoted by Chandru Raheja and a major player in the Indian real estate market. The Group has a presence in 5 major cities in India mainly Mumbai, Pune, Bangalore, Hyderabad and Goa with the construction of over 2,000 buildings. K Raheja Corp Group, has developed commercial office spaces / special economic zones (SEZs), premium residential / township developments, retail malls and hospitality real estate. It has a remarkable track record in the leasing and maintenance of such assets.

As of Jan 2017, KRIT was held by K Raheja Group (89%) and by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) (11%). It has 11 commercial buildings with a saleable area of 2.61 million sf, spanning 48.4 acres. The issuer has developed these buildings and also maintains them. They are part of a larger development called Raheja Mindspace located in Madhapur, Hyderabad, an established IT/ITES and residential hub. There are over 42 corporate tenants occupying these 11 buildings. It provides both multitenant and built-to-suit facilities to companies. All the 11 commercial properties were developed during 2006 and 2009. The property has historically maintained a high level of occupancy. The occupancy level of the property in Jan 2017 was in excess of 99%.

S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji

Pallonji & Co Pvt Ltd) (CARE AA(SO))

S. D. Corporation Private Limited (SDCPL), a JV between the Shapoorji Pallonji Group and the Dilip Thacker Group is engaged in real estate development. Its operations are largely concentrated in Mumbai.

The guarantor, Shapoorji Pallonji and Company Private Limited (SPCPL) is the flagship company of the Shapoorji Pallonji Group. SP Group is a consortium of companies held by the Mistry Family. The SP Group has a diversified businesses across sectors like construction, water purification, infrastructure development, etc. SPCPL is one of India’s leading construction companies and has a legacy of almost 150 years. It has built diverse civil and engineering structures; executed some major notable commercial construction projects around the country.

The SP Group is also the largest private shareholder (with an 18.37% stake) in Tata Sons Limited, the holding company of the Tata Group. SPCPL, which is held by Mr. Shapoor Mistry and Mr. Cyrus Mistry through various group companies, functions as the holding cum operating company of the SP Group.

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Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal Fund

Management Pvt Ltd) (AA-(SO) by Brickworks)

We have invested in NCDs issued by Innovador Traders Pvt Ltd. Our NCDs will be backed by a letter of undertaking issued by Piramal Fund Management Pvt Ltd (PFMPL), a wholly owned subsidiary of Piramal Enterprises Ltd. The letter of undertaking is strongly worded and will be in the form of an unconditional and irrevocable undertaking from PFMPL to arrange funds to ensure that NCD investors are redeemed in full and on maturity. This letter of undertaking will be signed by Ajay Piramal as Chairman of PFMPL.

Existing Credits

Altico Capital India Private Limited (AA-/A1+ by India Ratings)

The Company is ultimately owned by three private equity funds (Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners) which have infused a combined capital of US$ 300 million.

Altico is primarily focused on lending to the real estate sector in India across Tier-1 cities which includes Mumbai, NCR, Chennai, Bangalore, Pune and Hyderabad.

The Company focuses on senior secured lending to mid-income residential projects across Tier-1 cities in India and provides medium term financing to real estate developers for multiple purposes.

The Company has strong net worth as its shareholders have invested US$ 300 million in the Company.

Bahadur Chand Investments Private Limited (ICRA AA)

Bahadur Chand Investments Pvt. Ltd (BCIPL) is a promoter held entity of Munjal family and

currently holds 8.67% stake in flagship company Hero Motocorp (HCML) valued at ~6,300 cr. We

take comfort from the strong promoter goodwill, debt free operations of HMCL and strong cash

flows, leadership position in the two wheeler segment in India, rich dividend history of HMCL

and structure of the transaction with a stated debt cap in place

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NirChem Limited (CRISIL AA )

Nirchem is a 100% subsidiary of Nirma. Nirchem is SPV floated by Nirma for acquisition of

Lafarge India. As per underlying terms, this SPV will get merged with Lafarge India within 12

months.

Nirma was set up in 1980 by Dr Karsanbhai K Patel to manufacture detergents, Nirma has

expanded operations to soaps, chemicals, allied products, and also processing minerals. It has

plants in Searles Valley (United States), Mehsana, Ahmedabad, Vadodara, Bhavnagar (Gujarat),

and Pali (Rajasthan). It has set up a cement plant in Pali with a capacity of 2.28 million tonne per

annum (mtpa), which began operations in November 2014. Nirma is aslo privately held company

with shareholding by Patel family. Nirma has healthy market position in domestic soda ash and

soaps and detergent businesses supported by high backward integration.

Lafarge is a regional cement manufacturer, with an installed capacity of about 10.8 mtpa as on

March 31, 2016. Lafarge has strong operating efficiency and established market position in

cement

The acquisition of Lafarge will provide diversity in business risk profile and geographical

presence for Nirma.

Shapoorji Pallonji Finance Private Limited (CRISIL AA-/A1+)

SPFPL, an NBFC, is the financial services arm of the Shapoorji Pallonji Group (“SP Group”). SP

Group controls the Company through its Holding Company –Shapoorji Pallonji & Co. Pvt. Ltd.

(SPCPL).

SP Group has legacy of more than 150 years of delivering various projects, the SP Group is a

diversified business conglomerate. The SP Group companies serve clients in about 50 countries.

The Group has around 40,000 employee comprising of about 40 nationalities.

The company is strategically important to SPCPL, with SPFPL being the only financial services

company of the SP Group. Further, with around 1/3 rd of SPFPL's book expected to be towards

real estate, the Company will have significant synergies with the existing businesses of the

group.

The SP group's senior management is actively involved in SPFPL's strategic decision making.

SPFPL's board have senior members and promoter family member/s from SPCPL. SPCPL will

have board control and management control over SPFPL irrespective of the level of stake held in

SPFPL.

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Aasan Corporate solution Pvt Ltd (ICRA A+ (SO))

Aasan is a 100% entity owned by Ajay Piramal, promoter of Piramal Enterprises Ltd (PEL) with

market capitalization of Rs.15,400 cr. Ajay Piramal, directly and through his family hold 52.95%

stake in PEL (market value of Rs.8,150 cr).

The structure derives its strength from an unconditional, irrevocable and continuing guarantee

by the Sri Krishna Trust (SKT), one of the principal holding entities of the Ajay Piramal group. Of

the 52.95% owned by the promoters in PEL, 48.72% is held through SKT making it the single

largest shareholder in PEL. The structure is further supported by a borrowing cap (lower of Rs.

1,000 crores or 25% of the market value of PEL shares held by SKT), which ensures that the

dividend income received (Rs.180 cr in FY15) can be used for servicing the debt obligation.

Adani Ports and Special Economic Zone Ltd (ICRA AA+/A1+)

Adani Ports is the developer and operator of the Mundra port located in the Kutch district of Gujarat on the west coast of India, under a 30-year Concession Agreement with the Gujarat Maritime Board (GMB), valid till February 2031. Adani Ports commenced trial operations at Mundra port in 1998 and commercial operations in 2001 and in a decade’s time the port has grown to become the largest port in the country by cargo handling capacity. The port offers handling services for all kinds of cargoes viz. bulk- dry and liquid, crude and containers. Further through its majority/wholly owned SPVs, Adani Ports has a presence in the logistics business (container trains and ICDs) and is associated with port/terminal developments in Dahej, Hazira, Mormugao, Kandla and Vizag in India.

For FY15, the company reported income of Rs. 4,648 cr with PAT of Rs. 2,183 cr.

The ratings reflect the strong business profile of the company’s flagship Mundra port which has emerged to become India’s leading port in terms of total cargo handled and has been consistently registering cargo growth at rates superior to the industry trend driven by its diversified cargo profile and long term customer tie-ups. The ratings also factor in the robust profitability metrics and cash accruals of Adani Ports.

Adani Power: (BWR AA-(SO))

Adani Power (APL) is the power generation vertical of the Adani group. APL currently has an

operational capacity of 9240 MW, comprising of 4620 MW at Mundra UMPP in Gujarat, 3300

MW at Tiroda in Maharashtra and 1320 MW at Kawai in Rajasthan. The installed capacity of APL

will increase to 11,040 MW with the acquisition of the soon-to-be-completed 1,200 MW Udupi

plant (bought at an enterprise valuation of 6000 crore) and Korba plant (600 MW).

The NCDs are secured by 2X pledge of shares of Adani Ports & SEZ (market capitalization of

Rs.41,000 crs), which enjoy substantial liquidity in the markets.

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Adani Transmission Ltd. (IND AA+/A1)

Adani Transmission Ltd. (ATL) is a holding company, created to house the transmission assets of

Adani group. ATL holds two step-down subsidiaries, namely Adani Transmission India Limited

(ATIL) and Maharashtra Eastern Grid Power Transmission Company Limited (MEGPTCL). ATIL

holds 3 transmission assets while MEGPTCL holds 1. All 4 transmission assets are operational.

ATL effectively operates the largest private sector transmission network in India, with more than

5,000 CKT (circuit kilometers).

Until the recent reorganization of Adani Group, ATL was held 100% by Adani Enterprises Ltd.

Post the reorganization, ATL is held 75% by promoters, 18% by FIIs, 3% by banks/FIs and rest by

public and has been recently listed (market capitalization of Rs.3200 cr).

Aspire Home Finance Corporation Ltd (ICRA AA-)

Aspire Home Finance (AHF), the housing finance arm of Motilal Group, started lending

operations in May 2014 primarily offering housing loans to individuals. It has a track record of

1.5 yrs and had an AUM of Rs.1405 cr as on Dec-15, with 42 branches and ~300 employees. AHF

is 97.3% owned by Motilal Financial Services Ltd and 2.7% by CEO Anil Sachidanand (with a ~3%

ESOP base due to vest in next 2-3 yrs)

Asirvad Microfinance Pvt. Ltd. (CRISIL A+)

Asirvad Microfinance Pvt. Ltd. (AMPL) is an NBFC-MFI recently acquired by Manappuram Finance Ltd, which now holds 85% stake. AMPL has been operating since Jan 2008; it presently operates in 44 districts across Tamil Nadu & Kerala, Orissa and Gujarat and Karnataka. As at Mar-15, it had an AUM of Rs.322 cr with FY15 net profit of Rs.11 cr.

AMPL was promoted by Mr SV Rajavaidyanathan, who is an IIT-IIM alumnus and was previously President at Reliance Retail Ltd, Chennai. He has ~30 years of experience in financial services. The other promoter is his brother Mr. SV Krishnamurthy who is a qualified chartered accountant and a company secretary. He promoted a financial BPO that has now been taken over by Sundaram Finance. The Management comprises of Professionals who have relevant experience in Banking, Microfinance, Finance and HR and has the necessary skills to carry out its responsibilities.

AMPL is held by Manappuram Finance (85%) and S.V. Raja Vaidyanathan (15%). AMPL’s equity needs over the medium term (Rs.40-50 cr until FY18) are quite moderate in relation to Manappuram’s networth (Rs. 2,630 cr; gearing at ~3.3 times), thus providing a strong visibility of timely support to maintain reasonable leverage, as the business expands. Manappuram also has an option to buy remaining 15% stake till 2018.

As per our discussions with management, Manappuram is serious about growing this business to achieve scale and intends to increase its ownership to 100%. It has already infused Rs.115 cr equity. Manappuram has also set aside an emergency credit line of Rs.100 cr at 13% to be made

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available to AMPL at any point in time. AMPL’s asset quality is amongst the best in the MFI industry with >90DPD at 0.01%

AU Financiers Ltd.: (FITCH A+(IND)

Au Financiers Ltd. (AUF) is a Rajasthan-based NBFC operating primarily in CV finance segment and LAP business. AUF has also set up a housing finance subsidiary. AUF was set up by a first generation entrepreneur Sanjay Agarwal in 1986. Subsequently, it started generating portfolio for HDFC Bank in 2003 as channel partner. In 2008, AUF received its first of its multiple private equity capital infusions subsequent to which it originated portfolio on its own book and started growing rapidly. The promoter holding in the company is ~30%. As on Mar-15, AUF has an AUM of ~Rs.5,000 cr, spread across 260 branches in 10 states, and net profit of Rs.140 cr.

Bharti Enterprises (Holdings) Pvt. Ltd.(BEHPL) (CRISIL A1+)

BEHPL, promoted by the Bharti Mittal family, is a key holding company of the Bharti group,

which has presence in diverse businesses such as telecom, agricultural products, financial

services and retailing. The company's strong financial flexibility stems from its significant

effective holding of 22.1 per cent stake in BAL. The market value of BEHPL's investment in BAL

amounts to approximately Rs.35,000 cr.

Camden Industries Ltd. (backed by unconditional and irrevocable undertaking of Axis Capital) (CARE

AAA(SO))

Camden Industries is an arms’ length entity which is issuing NCDs which will be mainly utilized

for acquisition of Share Portfolio (Birla Group Companies) currently held by Kesoram Industries

Ltd. Kesoram Industries Ltd., the flagship company of BK Birla Group, is in the cement, tyres and

rayon fibre business. It has a market cap of Rs.900 cr. In Sep 2015, Kesoram announced sale of

its tyre division to JK Tyres for a consideration of Rs.2,200 cr. The transaction has received CCI

approval in Feb 2016 and proceeds of the sale will be received by Kesoram within 1-2 months.

The transaction carries a credit enhancement provided by Axis Capital Ltd by way of an

unconditional and irrevocable underwriting commitment on the NCDs, making the NCDs an

obligation of Axis Capital. Axis Capital Ltd (earlier known as Axis Securities and Sales Ltd) is a

100% subsidiary of Axis Bank Ltd and is in the business of providing investment banking and

capital market services.

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Continental Drug Company Pvt Ltd / Edison Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee

Ltd ) BWR A+(SO)

Both entities are entities held by Subhash Chandra & family, promoters of Zee Group. Zee

Entertainment Enterprises Ltd (ZEE), promoted by Subhash Chandra, is one of India’s leading

television, media and entertainment companies with a wide viewer base of over 959 million

across 169 countries. ZEE operates 33 domestic channels and delivers 39 international channels

covering all genres of entertainment. Promoters currently hold 43% stake in ZEE Entertainment

Enterprises, being valued at Rs.9,600 cr on a market cap of Rs.38,000 cr. These NCDs are secured

by pledge of shares of ZEE Entertainment Enterprises. We take comfort from the reputation and

track record of Essel Group in general and fundamentals, liquidity and performance of ZEE

shares.

Dalmia Cement Bharat Ltd (ICRA AA/A1+)

DCBL is the cement-business holding company of the Dalmia group. After successfully enhancing

capacities over the last five years by way of brownfield and greenfield expansion, the group has

accelerated its growth through strategic acquisitions. DCBL holds 75% stake in OCL India Ltd.

(market capitalization of Rs.2,300 cr), a major cement player in the eastern region with a

capacity of 6.7 MT. DCBL has successfully established its footprint in North East by acquiring

three cement plants - Calcom Cement, Adhunik Cement and JP Bokaro Cement. As a result, its

cement capacity has risen to ~24 MT, making it the 3rd largest cement group in India.

The rating takes into account DCBL’s strong market position in Southern and North East India

with healthy market share in both of these markets. The company benefits from an established

management, strong operating efficiencies, established brand and caters to the relatively

attractive cement markets of Tamil Nadu and Kerala, where it enjoys relatively higher capacity

utilization, realization and operating profit per tonne of cement sold as compared to cement

companies located in AP and Karnataka.

The NCDs are secured by first exclusive charge on 51% shares of OCL India.

Until recently, KKR held 15% stake in DCBL which has been acquired in Jan 2016 by parent

Dalmia Bharat Ltd. (listed entity) at a consideration of 7.5% stake in DBL and Rs.300 cr cash.

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Deutsche Bank - India branch (DBI) (rated A1+ by CRISIL)

Deutsche Bank India’s parent Deutsche Bank AG is currently rated BBB+/BBB/A- by

Moody’s/S&P/Fitch respectively. It was founded in Berlin in 1870 and is a prominent name in

international financial services. Its core strengths are: corporate and investment banking,

private clients, and asset management and corporate investments. Deutsche Bank entered India

in 1980 and it is present through 17 branches (as on March 31, 2016). The bank launched retail-

banking services near the end of 2005.

Deutsche India has strong capitalisation, backed by continued support from Deutsche Bank.

DBI’s strong suits are transaction banking, private banking and wealth management businesses.

For fiscal year ending in 2016, Deutsche India reported a profit after tax (PAT) of Rs 11.9 billion

on a total income (net of interest expense) of Rs 37.7 billion, against a PAT of Rs 14.1 billion on a

total income (net of interest expense) of Rs 39.2 billion for the previous year (FYE 2015).

Deutsche India had a total asset base of Rs 694 billion and a net worth of Rs 116 billion as on

March 31, 2016.

Dewan Housing Finance Corp Ltd (CARE AAA/A1+)

Incorporated in 1984, DHFL primarily provides housing finance to individuals, especially to the low and lower-middle-income groups in Tier-II and Tier-III cities. The company also offers non-housing loans such as LAP and developer loans. DHFL has a pan-India presence, with customer touch points in 444 locations.

The ratings reflect DHFL's strong market position in the housing finance segment, and its healthy asset quality supported by high granularity in the underlying portfolio. DHFL has a strong market position in the mortgage finance segment as reflected in the significant scale achieved by the company over the past few years. DHFL is the third largest housing finance company with assets under management (AUM) of ~65,000 cr. DHFL reported net profit of Rs.630 cr in FY15 v/s PAT of Rs.529 cr for FY14.

DLF Emporio Ltd (CRISIL AA(SO))

DLF Emporio mall is located in Vasant Kunj, South Delhi which is among the most affluent residential areas in Delhi and has leasable area of ~305,000 sq ft with 98% area leased out. Emporio mall has around 90 tenants and houses global luxury brands including Louis Vuitton, Christian Dior, Gucci, and Armani and prominent Indian designer brands like Sandeep Khosla and Rohit Bal. The top 10 tenants have been occupants for 2-3 years, and lease agreements are drawn for 9 years with rent escalations of 15% every 3 years; the top 10 tenants constitute 40% of the lease rentals of DLF Emporio. The mail has been operational for more than 5 years. The property has been valued at Rs.1,076 crs by Cushman and Wakefield, providing a security cover of 2x on our investment.

The CMBS structure derives strength from the quality of the underlying properties, comfortable interest service coverage, liquidity support, and the structural features of the instrument.

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East-North Interconnection Company Limited: (AAA(SO))

East North Interconnection Company Ltd.(ENICL), a 96.2% step-down subsidiary of

SterliteTechnologies, is the developer of 2 400 kV double circuit power transmission lines

connecting the states of Assam with West Bengal & Bihar. The project is developed on BOOM

(Build, Own Operate & Maintain basis), wherein ENICL is designated as the Interstate

Transmission System (ISTS) Licensee.

ENICL has entered into Transmission Service Agreement (TSA) with Power Grid Corporation of

India Ltd. (PGCIL), which is valid for 25 years from date of order i.e. 28th October 2010 to 28th

October 2035.

PGCIL is acting as the Central Transmission Utility (CTU) and responsible for billing, collecting transmission charges from the discom’s and distributing the same among ISTS Licensees.

The project, consisting only of transmission lines, has high reliability and low maintenance complexity, given the well-established technology and long design life of such assets. The useful life of transmission assets is at least 35 years.

Tariff payments to the project are linked only to availability of the assets and not with quantum of power flow, thus avoiding any volume risk based on transmission line utilization. In fact, the availability of Power Grid Corporation India Limited’s (PGCIL) assets across the country has remained above 99% in the last six years which demonstrates the well-established design/technology of transmission projects.

Given that the project is effectively ring-fenced from sponsor and requires minimal sponsor support during its life, credit profile is independent of that of the sponsor.

ECL Finance Ltd (CARE AA)

ECL Finance Ltd (ECLF), an NBFC along with Edelweiss Housing Finance Ltd is the primary lending arm of the Edelweiss group. ECLF offers collateralized loans to corporates and promoters, initial public offering financing and employee stock option plan financing as well as SME loans and loans against property. For FY15, ECLF reported net profits of Rs.180 cr with net worth of Rs.1740 cr and capital adequacy of 17.7%.

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Edelweiss Agri Value Chain Limited: ICRA AA/A1+

Edelweiss Agri Value Chain Limited (EAVCL) is an Agri Value Chain initiative, from the Edelweiss

Group. It is a step-down wholly owned subsidiary of flagship company Edelweiss Financial

Services Limited (EFSL). EAVCL is offering our valued services in the entire supply chain viz.,

Procurement, Transport Logistics, Storage, Quality Assaying and Certification, Commodity Health

Management, financing through Banks/FIs, Disposal services etc. EAVCL has 2 primary lines of

activity, sourcing and storage of commodities, and collateral and warehouse management, in

which EAVCL holds client stocks and facilitates financing through partner banks against these

stored commodities. EAVCL holds 4.5 lakh metric tonnes of stocks worth Rs 1362 crore across 12

states, as on Dec-15. The income profile of the company is dominated by warehousing charges

and profit on sale of commodities.

Equitas Micro Finance Pvt. Ltd. (CARE A)

Equitas Micro Finance Pvt. Ltd (EMFPL) is a 100% subsidiary of Equitas Holdings Pvt Ltd (EHPL)

and the MFI arm of Equitas Group (headquartered in Chennai and founded by Chola NBFC

veteran P.N.Vasudevan). EMFPL has been in existence since 2007 with 354 branches and AUM

of Rs.2,319 crs on Jun-15, of which 64% is from Tamil Nadu. EMFPL follows the Joint Liability

Group (JLG) model for extending micro loans to women micro borrowers in rural and urban

areas.

The exposure is secured by exclusive charge on specific current receivables to the tune of 1X.

Apart from the security, the structure has several covenants - in case any receivables become

sub-standard, they will be replaced with standard receivables within 15 days; State-wise

proportion of such receivables will mirror the actual composition of AUM; Portfolio at risk

beyond 90 days will not exceed 3% of AUM.

Equitas has received Small Finance Bank (SFB) License from RBI in Oct 2015 based on which

Equitas Micro Finance is being merged with NBFC and HFC entity to form an SFB by April 2017.

Essel Lucknow Raibareli Toll Roads Limited - IND AAA(SO)

Essel Lucknow Raebareli Toll Roads Limited (“ELRTRL” or “the Company”) is a SPV owned 100%

by Essel Group. It has implemented and currently operating a four lane Lucknow – Raebareli

section of National Highway no. 24B (NH–24B) from 12.70km to 82.70km (design length 70km)

in the state of Uttar Pradesh. The project was awarded by National Highways Authority of India

(NHAI) to the company under competitive bidding process on design, build, finance, operate and

transfer basis. NHAI will pay semi-annual annuity of Rs. 50.4 Crs over the concession period of

17 years. The Company has started receiving annuity from 21 July 2015.

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Ford Credit India Private Limited (A1+ by India Ratings)

Ford Credit India Private Limited is a fully owned subsidiary of Ford Motor Credit Company through Ford Credit International, Ford Motor Company’s global financing subsidiary. As a captive finance company, FCIPL provides loans and financial services to dealers and retail customer for the purchase of vehicles manufactured by Ford India Private Limited (FIPL). The company is systematically important, non-deposit taking NBFC.

FCIPL launched wholesale operations in March 2015 and retail operations in September 2015. FCIPL supports synergies with automotive company. It also provides floor plan financing to FIPL dealers. FCIPL has been established using Ford Credit’s global systems, processes and procedures.

The Company is rated as A1+ by India Ratings. The rating is driven by India Rating’s expectation of strong support from FCIPL’s parent– Ford Motor Credit Company and the ultimate parent- Ford Motor Company. The rating factors in FCIPL’s strong operational and business synergies within the group’s automobile businesses, management control by the parent, and sharing of the common Ford brand name.

Fullerton India Credit Co. Ltd. (CARE AAA)

Fullerton India Credit Company Limited (FICCL) is a step-down subsidiary of Temasek Holdings

(an entity held by Govt of Singapore). FICCL commenced its operations in January 2006 catering

primarily to self-employed borrowers. Over the last few years, FICCL shifted its focus towards

secured lending in retail mortgages, rural lending and SME while moving away from low income

segment, which is perceived to be more vulnerable to economic shocks. It has an net worth of

Rs.1,567 cr and AUM of ~Rs.9500 cr as on Mar-15 with FY15 net profit of Rs.301 cr.

Haldhar Developers Pvt Ltd (HDPL) (ICRA AA-(SO))

HDPL is a wholly owned subsidiary of Omkar Realtors and Developers Pvt Ltd (ORDPL). ORDPL has entered into an agreement with L&T Realty (100% subsidiary of L&T) to develop a 26 lac sqft residential project called “Crescent Bay” in Parel, Central Mumbai. L&T Realty and Omkar will share the top line revenues from the project in ratio of 60:40 (40% to Omkar). The project, being L&T’s first residential project in Mumbai, is critical for L&T’s goodwill from an execution point of view and has received good response with total sales expected to cross 5,000 crore.

The structure derives comfort from security in the form of first charge over Omkar’s share of project cashflows, corporate guarantee of ORDPL, personal guarantee from ORDPL promoters and an unconditional and irrevocable undertaking provided by Piramal Fund Management Pvt Ltd (100% owned by Piramal Enterprises) covering entire NCD obligation.

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Hero Realty Ltd (ICRA A+(SO))

HRL is an entity owned by the family of B M Munjal, the promoters of Hero MotoCorp Ltd (HML) and is engaged in the business of real estate development. Presently, HRL is developing two residential projects and three industrial parks over a land bank of nearly 400 acres in Haridwar, Uttarakhand.

The rating is based on the unconditional and irrevocable corporate guarantee issued by Hero Corporate Services Ltd (HCSL). HCSL provides various services to Hero group companies and its ancillaries and is headed by Mr. Sunil Kant Munjal (Joint Managing Director, HML). The payment mechanism is designed to ensure timely payment to the investors as per terms of the transaction, even if the guarantee has to be invoked by the Debenture Trustee.

HPCL Mittal Energy Ltd. (HMEL) and HPCL Mittal Pipelines (ICRA & IND AA)

HMEL was incorporated in 2000 as a JV between HPCL Ltd and Mittal Energy investments

Pte Ltd. HMEL has commercially commissioned a green field refinery complex with 11.3

mmtpa capacity at Bhatinda (Punjab, in north India) along with a captive power plant of 165

MV. To meet the crude receipt & storage facilities as well as to transport the crude for the

company, its wholly owned subsidiary HPCL-Mittal Pipelines Ltd (HMPL) has set up a Crude

oil terminal (COT) and Single Point Mooring (SPM) at Mundra Port and a cross-country

pipeline for transportation of crude oil from Mundra to Bathinda.

The majority shareholders ie HPCL and Mittal investments both hold ~49% stake with SBI

and HDFC Life holding ~1% each. HMEL is managed by a board comprising of 3 directs from

HPCL, 3 from the Mittal group and 2 independent directors. Sponsors have committed to

maintain minimum 51% shareholding on joint basis to lenders.

HMEL’s Refinery, with Nelson Complexity Index of 12.6 has the capability to process heavy

crude and produce high value petrochemical products. The products of the refinery meet

Euro-III/IV norms. The refinery is located in North India, where supply of petroleum

products is lower than demand. HPCL currently transports products from refineries located

in coastal areas in West and South India. As an inland refinery, the company commands

inland premium for its products.

IIFL Wealth Finance Ltd (IWFL) (ICRA AA/A1+)

IWFL, is a newly acquired entity of the IIFL Group, and is a 100% subsidiary of IIFL Wealth

Management Limited (IWML). IWFL is going to be operated as the lending vehicle for the Wealth

business of the IIFL Group, with the key products being loan against securities and margin

funding for existing customers of the Wealth business. Earlier, this lending book was based in

IIFL, the NBFC of the group, and would be transferred to IWFL, in a phased manner in the next 6

months, with incremental business booked out of IWFL itself.

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IWFL forms the wealth management and distribution arm of the IIFL Group. IIFL Holdings

Limited holds the majority stake of 53.86% in IIFL Wealth Management Limited as on March 07,

2016 (on fully diluted basis i.e. after considering the proposed conversion of warrants and stock

options issued). General Atlantic has recently, taken a stake of 21.61% in IIFL Wealth (on fully

diluted basis), with the balance being held by IIFL Wealth Management employees.

India Infoline Finance Ltd (CRISIL AA-/A1+)

India Infoline Finance Ltd is a majority owned (98.86%) subsidiary of IIFL Holdings Ltd, which is the holding company of the India Infoline group (market capitalization of Rs.5,500 cr). India Infoline Finance Ltd is the NBFC arm of the group and gives loans against gold, real estate, CV, medical equipment and margin funding.

As of Mar-15, it had an AUM Rs.15,979 cr with 26% gold loans, 48% LAP and 17% capital market financing.

Recently, value investor Prem Watsa-backed and Canada-based Fairfax Holdings announced an open offer to acquire substantial stake of 35% in IIFL Holdings (from current 14%).

Indostar Capital Finance (CARE AA-)

Indostar Capital Finance (ICF) started its full-fledged operations in Aug 2012 and is engaged in the business of secured wholesale funding with products ranging from corporate finance, capital market funding to property finance and acquisition funding. ICF is sponsored by three private equity funds - Goldman Sachs, Ashmore Group and Everstone Capital. The sponsors infused core equity of 900 crores at inception, making it one of the best capitalized and least leveraged NBFC in the market. ICF has a policy of maintaining adequate liquidity on balance sheet and does not do unsecured lending. For FY15, ICF reported PAT of 149 cr (v/s 112 cr) on an asset base of 3,391 cr (v/s 3,161 cr YoY) and networth of 1,136 crore (leverage of 2.25X)

Inox Air Products (CRISIL AA/A1+)

Inox Air is a joint venture between the Jain family (former owners of The Industrial Oxygen Company) and Air Products, with each partner holding a 49.74% stake. Inox Air manufactures industrial and medical gases, including oxygen, medical oxygen, argon, nitrogen, hydrogen, dissolved acetylene, helium, nitrous oxide, and specialty gas mixtures. The company sells these gases to customers across industries such as steel, energy, process and healthcare. The company is also engaged in the setting up of air separation and nitrogen plants.

We believe that Inox Air’s credit risk profile will continue to benefit from its established market

position, steady revenues, and healthy profitability. Furthermore, its gearing and debt

protection metrics (even after moderating on account of acquisition of industrial gas

manufacturing facilities from Essar Steel for 850 crore) will improve over the medium term, on

the back of greater scale of operations and absence of any large capex/investment

requirements.

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Intime Properties Ltd. (FITCH AAA(SO))

Intime Properties Ltd (Intime) is part of the K Raheja Group, a Mumbai based real estate

developer promoted by Chandru Raheja and a major player in the Indian real estate market. The

Group has a presence in 5 major cities in India mainly Mumbai, Pune, Bangalore, Hyderabad and

Goa with the construction of over 2,200 buildings.

Intime is held 89% by K Raheja Group and 11% by Andhra Pradesh Industrial Infrastructure Corporation. The Group, through Intime, has developed Mindspace Cyberabad – an IT/ ITeS focused integrated development at Madhapur near HITEC city. The current transaction is a CMBS structure (partially amortizing) against 3 specific buildings (spread over 8.52 acres with 17.14 lakh sq.ft. leasable area) in Mindspace Cyberabad, which are 99% leased out with more than 35 premium corporate tenants such as Novartis, Continuum Solutions, HSBC etc.

In addition to collateral of specified land & buildings (current security cover of 2.3X), the structure incorporates exclusive charge on rent received (for debt servicing) and also performance-based triggers:

o Quarterly weighted average base rent drops below Rs.30 p.m.per sq.ft.

o Quarterly average occupancy level falls below 85%

o Security cover falls below 2X

In case any of these events are triggered, all excess rent receivables after debt servicing

will be trapped and cannot be withdrawn by issuer.

IOT Utkal Energy Services Ltd (CRISIL AAA(SO)

IOTUL is a special purpose vehicle which has set up crude and product storage tanks on Build Own Operate Transfer (BOOT) basis for Indian Oil Corporation’s Paradip refinery in Orissa. IOTUL achieved successful completion and deemed commissioning of crude oil tankages in October 2013. The total project cost incurred for the construction of the facility was Rs.3553 crore and the BOOT period is 15 years from COD (up to October 2028).

The rating reflects the criticality of IOTUL’s facilities and the strong credit quality of its sole counterparty – IOC (rated AAA / A1+ by Crisil). IOTUL’s crude and product storage tanks facility will play a critical role in the operations of IOC’s Paradip refinery. IOTUL will also benefit from the fixed cash flows arising from its contractual agreement with IOC.

Janalakshmi Financial Services (ICRA A+)

Janalakshmi Financial Services Private Ltd (JFS) is a Bangalore-based NBFC-MFI catering to the

financial needs of urban poor women through the Joint Liability Mechanism. JFS was founded in

2006 by Mr. Ramesh Ramanathan as Janalakshmi Social Services (JSS), the portfolio of which

was taken over by JFS in 2008. The promoter shareholding continues to be in Jana Urban

Foundation-JUF (a non-profit company) and funds in JUF are used to address social issues.

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JFS has 167 branches across 96 cities in 16 states in India with the share of top 3 states viz.

Karnataka, Maharashtra and Tamil Nadu being about 58.7%. JFS has no presence in Andhra

Pradesh/Telangana. It has registered a high compounded growth of 135% in the last 4 years. The

company has been able to receive equity every year for the last 4 years and has raised close to

462 crs equity (largest PE funding in MFI) in the latest round from TPG Capital. As on Sep 2014,

JFS had a portfolio of Rs. 2,591 cr, spread amongst 1.79 million borrowers (avg ticket size of

Rs.15,000).

The exposure is secured by exclusive charge on specific current receivables to the tune of 1.1x.

Apart from the security, the structure incorporates various covenants based on leverage, asset

quality, capital adequacy and management commitment which provide significant credit

comfort.

JFS has received Small Finance Bank (SFB) License from RBI in Oct 2015 and it will begin banking

operations latest by April 2017.

Karelides Traders Private Limited (ICRA AA- (SO))

Karelides Traders Private Limited (KTPL) is a shell entity, which has raised 375 crs of NCDs and invested it in a Runwal group residential project in Kanjurmarg East, Mumbai called Runwal Bliss. The NCDs have an Early Repurchase option (at the discretion of both the Issuer and the investor) exercisable every 3 months from the deemed date of allotment and after every 3 months thereafter.

The NCDs are secured by registered mortgage of land parcel along with all rights, title and beneficial interest including receivables and escrow account charge related to Runwal Bliss Phase 2. The structure is also backed by an unconditional and irrevocable undertaking provided by Piramal Fund Management Pvt Ltd (100% owned by Piramal Enterprises) covering all NCD obligations.

Kolte-Patil Developers Limited (A+ by CRISIL)

KPDL, incorporated in 1989, is promoted by Mr. Rajesh Patil, along with his brother, Mr. Naresh Patil, and brother-in-law, Mr. Milind Kolte.

KPDL, along with its subsidiaries and associate companies, is one of the largest residential real estate developers in Pune. It enjoys 8-11% market share in Pune real estate market. The company has a healthy project portfolio across residential segments and is expanding its presence in the Bengaluru and Mumbai markets.

As of March-16, the company has executed over 10 million square feet (msf) of projects and has 20 msf of projects under construction in the residential real estate segment.

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Manappuram Finance Ltd (CARE AA/ A1+)

Manappuram Finance is a non-deposit-taking NBFC engaged in providing finance against

household gold ornaments. The company is promoted by Mr. VP Nandakumar, whose family has

been engaged in the gold finance business for more than 60 years and has strong presence in

South India with 3,293 branches at March 2015 end.

Manappuram enjoys robust capitalisation and stable, diverse funding sources.

Manappuram Finance had AUM of Rs. 9,593 crores and networth of Rs. 2,633 crores at March

31, 2015. For FY15, it reported PAT of Rs. 270 cr (v/s Rs. 210 cr YOY).

Mandava Holdings Pvt Ltd (ICRA AAA)

Mandava Holdings (MHPL) is the holding company of Nuziveedu Seeds Ltd., the flagship company of the group and the largest private sector seed company in India. The group has been an established player in the hybrid seeds business for more than 30 years. Apart from this, the group also has interest in power, textiles, sugar and infrastructure.

The transaction carries a credit enhancement provided by Axis Capital Ltd by way of an unconditional and irrevocable underwriting commitment on the NCDs, making the NCDs an obligation of Axis Capital.

Axis Capital Ltd (earlier known as Axis Securities and Sales Ltd) is a 100% subsidiary of Axis Bank Ltd and is in the business of providing investment banking and capital market services.

Muthoot Fincorp Ltd. (CRISIL A-)

MFL, set up in 1997, is a non-deposit-taking, systemically important NBFC engaged in lending

against gold. It is the flagship company of the Muthoot Pappachan group, which has diverse

business interests, such as hospitality, real estate, and power generation. The company also

distributes mutual funds, and general and life insurance products, and operates in the money-

transfer segment. MFL had an advance book of ~Rs.9,000 cr as on March 2016 of which Rs.1,500

cr is Microfinance JLG loans. MFL operates out of 3,700 branches across India.

Nabha Power Ltd (ICRA & CRISIL AAA(SO))

Nabha is a 100% indirect subsidiary of Larsen & Toubro. Nabha was awarded the project by Punjab State Electricity Board (PSEB) to develop 1400 megawatt super critical coal-based thermal power project in Rajpura (Punjab). Nabha has in turn contracted a 25-year power purchase agreement with Punjab State Power Corporation Ltd (PSPCL).

The rating is based on unconditional and irrevocable guarantee from Nabha’s ultimate parent, Larsen and Toubro Ltd, effectively making this an L&T obligation.

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Peninsula Land Ltd. (ICRA A)

Peninsula Land Ltd (PLL) is a leading Indian real estate developer headquartered at Mumbai and is part of Ashok Piramal Group, a leading Indian conglomerate having business interests in textiles, auto components, cutting tools, family entertainment and sports besides real estate. PLL has a market cap of Rs.625 cr with revenue of 312 cr in FY15 and EBITDA of 130 cr.

PLL has a strong brand presence in the upmarket south Mumbai area; it operates under the brand name “Ashok” for residential developments and “Peninsula” for commercial developments.

Since inception, PLL has delivered projects measuring about ~6.4 million sq ft till date (50% commercial, 44% residential and 6% retail). PLL’s residential strategy focuses on acquiring premium land bank with easy monetization; choice of globally renowned architects and vendors; and offering integrated services of facility management, concierge services and interior designing. PLL’s commercial real estate business has been more active in Mumbai compared to other cities. In the retail segment, the company is credited for developing India’s first organised retail mall, Crossroads, as also CR2 in South Mumbai.

PLL is largely focusing on executing relatively smaller projects (<1 msf) to mitigate risks of delays and cost overruns. ~80% of value is accounted for by Mumbai (50%) and Pune (27%).

The NCDs are secured against specific land parcel in Mumbai with minimum cover of 1.75X (current cover of 2.2X), pledge of shares of project SPV and escrow of all project cashflows.

Powergrid Vizag Transmission Ltd. (PVTL) (CRISIL AAA(SO))

PVTL was incorporated as a Project SPV in November 2011, and subsequently acquired by PGCIL

in August 2013, after it emerged as the successful bidder in the exercise conducted by REC

Transmission Project Company Limited (the Bid Process Coordinator), pursuant to the guidelines

of Tariff Based Competitive Bidding (TBCB). PVTL is establishing the project on Build, Own,

Operate and Maintain (BOOM) basis. Transmission License has been granted to PVTL in January

2014, and transmission charges were adopted by the CERC in the same month.

The exposure is backed by an unconditional and irrevocable guarantee of Powergrid Corporation

of India (PGCIL).

Prestige Estates Projects Ltd (ICRA A+)

Prestige Estates Projects Ltd (PEPL) is the flagship company of Prestige Group with a market

capitalization of Rs. 7,680 crs, which was established in 1986 and is currently headed by Mr.

Irfan Razack - Chairman & Managing Director. Prestige has over 28 years of experience in real

estate development and is one of the leading real estate developers in South India. It has

completed 169 real estate projects of approx. 6 Crs sq. ft. It has developed a diversified portfolio

of real estate projects focusing on residential (apartments, villas, plotted developments and

integrated townships), commercial (corporate office blocks, built-to-suit facilities, technology

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parks and campuses and SEZs), hospitality (including hotels, resorts, spas and serviced

apartments) and retail (including shopping malls) segments of the real estate industry. Prestige

also holds sizeable land parcels of more than 300 acres in Bangalore and other cities.

The transaction involves mortgage on the unsold identified residential units in four under

construction properties of PEPL such that the security cover of at least 1.5x is maintained at all

times during the tenure of the NCDs. All sale proceeds from the said projects will be deposited

in the escrow account and will be available to investors for prepayment. 70% of sales have

already been achieved in the four projects on a combined basis, thereby significantly reducing

pricing and sales risk.

Pune Solapur Expressways Pvt. Ltd. (ICRA A(SO))

Pune Solapur Expressways Pvt. Ltd. (PSEPL) is an SPV promoted in 2009 as a 50:50 JV by TRPL

Roads Pvt Ltd (a 100% subsidiary of TRIL, which is in turn a 100% subsidiary of Tata Sons) and

Atlantia (an Italian road developer, rated A- by Fitch global). PSEPL has been set up for

developing and managing the project for 4 laning of Pune Solapur section of NH 9 for 117 km

(incl bypass) in Maharashtra under NHDP III on BOT basis for concession period of 21 yrs from

appointment date of Nov 2009 i.e. Nov 2030.

The structure has various reserve accounts exclusively charged to NCD holders which provides

adequate buffer in case of volatile cash flows from toll. A controlling 51% stake in the SPV is also

pledged to NCD holders.

Reliance Utilities and Power Pvt. Ltd. (RUPPL): (CRISIL AAA)

RUPPL (owned by promoters of Reliance Industries Ltd. – RIL) has set up power plants for RIL

and also operates them. These plants are at Jamnagar (both in domestic tariff area and special

economic zone) and Hazira with combined capacity of 1116 MW of power and 4490 tonnes per

hour of steam. RUPPL is setting up power plants aggregating to 2,100 megawatt (MW)

equivalent through 2015-16. These units are to be set up in Jamnagar, Dahej (Gujarat) and

Hazira; and to take care of the power requirements for RIL. These facilities will exclusively cater

to RIL and the proposed expansion is aligned with RIL’s on-going expansion projects, primarily in

the petrochemicals and refining business.

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Sadbhav Engineering Ltd (CARE A+/A1+)

Incorporated in 1988, SEL has evolved as one of the prominent developers and engineering, procurement and construction (EPC) contractors in India. The Sadbhav group has a portfolio of 13 BOT projects (seven operational, two partly operational, and four ongoing projects) which are held by a wholly-owned subsidiary - SIPL.

SEL operates in four distinct business areas in the construction sector viz. BOT road projects, cash contract-based road projects, irrigation and mining.

SEL has an established track record in the Indian construction sector and has demonstrated capability in the timely execution of large sized build-operate-transfer (BOT) projects with its healthy and diversified order book position.

Sahyadri Agencies Ltd. (BWR A(SO))

Sahyadri Agencies is an entity held by the promoter of Jyothy Labs, Mr M P Ramchandran. The

promoter holds 66.78% stake in Jyothy Labs (valued at Rs.3,900 crs on a market cap of Rs.5,600

crs). These NCDs are in the nature of promoter funding, secured by pledge of shares of Jyothy

Laboratories Ltd (minimum cover of 2.5X) and personal guarantee of promoter.

The structure derives credit comfort from several covenants – total debt of the promoter

capped at Rs. 400 crs or 30% of Jyothy Labs market value, whichever is lower and all cash flows

received in the form of dividends, cash, bonus debentures etc shall be utilized towards

repayment/prepayment of this debt.

We draw comfort from the pledge provided by promoter, Jyothy’s 3 decade experience in FMCG

and its consistence performance backed by steadily rising share prices since last 3-4 yrs.

SBK Properties Pvt. Ltd. (ICRA AA-)

SBK is an SPV which is wholly owned by the promoters of Kalyani Group. Spearheaded by Mr. Baba Kalyani, Kalyani group is engaged in engineering & manufacturing of automotives, industrials and engineering steel. With end-to-end capability and manufacturing footprint across India, Germany, Sweden, & China, the Group has an annual turnover of over Rs.12,000 crore and market capitalization of ~Rs.19,000 crore. Bharat Forge Ltd. is the flagship company of the group with market cap of ~Rs.17,000 crore and the second largest forging company in the world.

NCDs are backed by unconditional, irrevocable and continuing guarantee by KSL Holdings Pvt. Ltd, one of the principal holding entities of the Kalyani Group. KSL holds 9.9% stake in Bharat Forge Ltd. and 11.6% in BF Utilities. The guarantee from KSL would cover all obligations that may arise on the rated NCDs.

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Shapoorji Pallonji Energy Gujarat Private Limited (backed by unconditional and irrevocable guarantee

of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA(SO)

Shapoorji Pallonji Energy (Gujarat) Private Limited (SPEGPL) is a wholly owned step-down

subsidiary of Shapoorji Pallonji & Company Private Limited. SPEGPL has been incorporated to

setup a 1320 MW (2 x 660 MW) thermal power plant in Phase-I, based on supercritical

technology near Kodinar in the Junagadh district of Gujarat. The company plans to setup two

additional 1320 MW (2 x 660 MW) capacity units at the same site in Phase-II and Phase-III. The

company won the bid under Case-I competitive bidding in March 2010 to supply 800 MW to

Gujarat Urja Vikas Nigam Limited (GUVNL) and has subsequently entered into a PPA with GUVNL

for the same capacity for a period of 25 years.

The NCDs have an unconditional, irrevocable revolving guarantee from Shapoorji Pallonji & Co.

Sneha Abasan Pvt Ltd/ Sneha Enclave Pvt Ltd / Emami Enclave Maker Pvt Ltd/ Emami Realty Ltd./ Bhanu Vyapaar Pvt. Ltd. : (BWR & IND AA-(SO))

Sneha Abasan Pvt Ltd/ Sneha Enclave Pvt Ltd / Emami Enclave Maker Pvt Ltd / Emami Realty

Ltd./ Bhanu Vyapaar Pvt. Ltd. are entities owned by the promoters of Emami Ltd, RS Agarwal

and RS Goenka. Emami is one of India’s leading FMCG companies engaged in manufacturing &

marketing of personal care & healthcare products. Emami’s portfolio includes trusted power

brands like Zandu, Boroplus, Navratna, Fair & Handsome, Mentho Plus, Fast Relief and Sona

Chandi Chyawanprash. Emami has market capitalization of Rs.27,170 crs and the promoters hold

72.74% stake in Emami Ltd, valued at Rs. 19,760 crs.

The structure consists of a 1.6x pledge over shares of Emami Ltd and protection in the form of

triggers like cap on promoter pledge (50% of their total holding) and on total promoter

borrowing (not to exceed Rs.3,000 crs).

SP Jammu Udhampur Highways Ltd. – (ICRA AAA(SO))

SP Jammu Udhampur Highway Limited (SPJUHI) is an SPV owned 100% by Shapoorji Group. It undertook strengthening and four-laning of 64.58 km of Jammu to Udhampur on NH 1A on BOT and annuity basis, with total project cost of ~Rs.2,200 cr.

The concession period is 20 years (ending Jun-2031) and semi-annual annuity is Rs.202 cr. SPJUHI achieved COD in Jun 2014.

The structure incorporates, in addition to first charge over all toll receivables, a pledge of 51% of equity shares of SPJUHI by promoters, with an undertaking that remaining 49% will not be sold

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or otherwise transferred without prior approval of NCD holder, no further debt to be raised in the project, minimum DSCR of 1.05X. Most importantly, we derive comfort from an unconditional, irrevocable guarantee from Shapoorji Pallonji Co. (flagship company of the group) to fund DSRA (next payment), further capex, and any additional O&M/major maintenance or replacement costs, and to make good any annuity deduction made by NHAI in case of inadequate availability of lanes and also in case of termination of project; this effectively protects NCDholders from any additional cash outflow apart from those presently accounted for

The DSRA guarantee and all above undertakings will be unconditional and irrevocable as part of the Promoter Support Agreement signed between the Sponsors and Debenture Trustee.

Suraksha Realty Ltd (CARE A1+)

Suraksha Realty is a company owned by the promoter group of Sun Pharmaceutical Inds Ltd (rated AAA / A1+ by Crisil). Established by Mr. Dilip Shanghvi in 1983, Sun Pharma is the third largest pharma company by sales as well as the largest pharma company by market capitalization in India (Rs.207,000 crs).

The transaction is structured as a loan against shares (LAS) with a security cover of 1.75 times and is in the form of pledge of listed shares of Sun Pharma. The transaction has adequate safeguards and covenants to protect the interests of the investor.

Tata Motors Finance Solutions: (CRISIL AA/ ICRA A1+)

TMFS is a 100% subsidiary of Tata Motors Finance Ltd (TMFL). TMFL has transferred its existing

manufacturer-guaranteed and pre-owned vehicle financing businesses (AUM of ~Rs.6,000 cr) to

TMFS. Additionally TMFS will also engage in financing of construction equipments manufactured

by Tata-Hitachi. We derive comfort from the strong business, financial, and managerial support

and commitment given by TMFL and Tata Motors Ltd to TMFS due to its high strategic

importance. TMFS will benefit from the representation of Tata Motors senior management on

its board. Additionally, both TMFL and TMFS will have a common managing director. TMFS is

expected to receive significant support from Tata Motors.

Tata Power Ltd. (CRISIL AA-/A1+)

The Tata Power Company Limited (Tata Power), a Tata Group company, is involved in the

business of generation, distribution and transmission of power. It has a license for bulk supply of

electricity in the city of Mumbai. Tata Power Group currently has a total generation capacity of

8,613 MW on its own books as well as its subsidiaries. Of the same, 2,027 MW capacity is

utilised to meet the power demands in the License Area in Mumbai. The company supplies

power to Bombay Electric Supply & Transport Undertaking (BEST). Besides, it also supplies to the

Railways and other industrial and High-Tension consumers in Mumbai apart from direct sales to

retail consumers in the License Area.

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Tata Power operates the 4000 MW capacity as part of its Ultra Mega Power Project (UMPP) at

Mundra (project COD in March 2013), and the 1050 MW capacity in Maithon (project COD in

July 2012) through SPVs. The company also acquired 30% stake in coal mining companies (KPC

and Arutmin, based in Indonesia) in March 2007 and 26% stake in PT Baramulti Suksessarana

Tbk (BSSR), Indonesia, in November 2012, through offshore SPVs. In January 2014, the company

however announced it had signed an agreement for sale of its stake in PT Arutmin Indonesia.

Also, Tata Power has a power plant at Jojobera (428 MW) which supplies power to Tata Steel

Ltd. Tata Power also has an IPP in Haldia of 120 MW capacity out of which 100 MW capacity is

sold on merchant basis. Further, the company has installed wind power plants of 461 MW as on

date in the states of Gujarat, Maharashtra, Tamil Nadu and Karnataka along with approx 58 MW

solar projects commissioned in Maharashtra and Gujarat.

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Disclaimers: The above disclosure on credit quality of the debt instruments is based on the information provided by rating

agencies/respective companies. Few schemes of Kotak Mutual Fund have taken exposure in the debt instruments

issued by above companies. In future, the Fund Manager at their discretion may or may not invest in the Debt

instruments issued by above companies.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.