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Key Credit Brief

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 *Upgrade/ Downgrade

Pg. no.

(A) Kotak Credit Process 3

New Credit

1 Bahadur Chand Investments Private Limited ICRA AA No Change 4

2 Tata Communication Payment Solutions Ltd CARE AA(SO) No Change 4

(B) Existing Credit

3 Century Textiles & Industries Ltd CRISIL AA/A1+, CARE A1+ No Change 4

4 Godrej Properties Ltd ICRA AA/A1+, CRISIL A1+ No Change 5

5 Nayara Energy Limited CARE AA No Change 5

6 Coastal Gujarat Power Ltd. (Guaranteed by Tata Power Co. Ltd ) CARE AA(SO) No change 6

7 JM Financial Asset Reconstruction Company ICRA AA-/A1+, CARE AA-/ A1+, CRISIL AA-/A1+

No change 6

8 Altico Capital India Pvt Ltd IND AA- / ICRA A1+ No Change 6

9 Avendus Finance Pvt Ltd CRISIL A+ / A1+ No Change 7

10 Rent A Device Trust/Reliable Devices Trust ICRA AAA(SO) No Change 7

11 Endurance Technologies Ltd CRISIL AA / A1+ No Change 7

12 Green Infra Wind Energy ICRA A1+, CRISIL A1+ No Change 8

13 Utkarsh Small Finance Bank ICRA A1 No Change 8

14 AASAN Corporate Solutions Private Limited ICRA AA- (SO) No Change 8

15 Incred Financial Services Private Limited (Visu Leasing and Finance) CARE A/A1 No Change 9

16 Jyothy Fabricare Services Limited CARE AA(SO) No Change 9

17 Suhani Trading and Investment Consultants Pvt Ltd BWR A+ (SO) No Change 9

18 Punjab National Bank

IND A+ CARE AA- CRISIL AA BWR AA (for Additional Tier1 Bonds)

No Change

10

19 Sarvoday Advisory Services Pvt. Ltd BWR A(SO) No change 10

20 Bharti Telecom Ltd CRISIL A1+ No change 10

21 Future Lifestyle Fashions Ltd CRISIL AA- No change 10

22

Aarish Solar Power Ltd. / Aashman Energy Pvt. Ltd. / Divyesh Power Pvt. Ltd. / Elena Renewable Energy Pvt. Ltd. / Pratyash Renewable Pvt. Ltd. / SEI Baskara Power Pvt. Ltd. / SEI Enerstar Renewable Energy Pvt. Ltd. / SEI Mihir Energy Pvt. Ltd. / Zuvan Energy Pvt. Ltd / Shreyas Renwable Energy Pvt. Ltd

CARE AA-(SO) No change 11

23 Adani Infra (India) Ltd BWR AA-(SO) No change 11

24 Aspire Home Finance Corporation Ltd ICRA A+ No change 11

25 Ananta Landmarks Pvt Ltd. Unrated No change 11

26 AU Small Finance Bank Ltd. AA-/A1+ by CRISIL, ICRA India Ratings, CARE

No change 12

27 Asirvad Microfinance Pvt. Ltd CRISIL A+ No change 12

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*Upgrade/Downgrade change for the DECEMBER 2018 month.

28 Barclays Investments & Loans (INDIA) LTD. ICRA AAA / A1+ No change 12

29 Bhopal Dhule Transmission Company Limited CRISIL AAA No change 13

30 Birla TMT Holding Pvt Ltd, Turquoise Investments & Finance Pvt Ltd CRISIL A1+ No change

13 TGS Investment & Trade Pvt Ltd, Trapti Trading & Investments Pvt Ltd ICRA A1+ No change

31 Konti Infrapower & Multiventures PvtLtd/ Edison Utility Works Pvt.Ltd. BWR A+(SO) No change 13

32 Dewan Housing Finance Corp Ltd CARE AAA/A1+ No change 14

33 Dalmia Cement Bharat Ltd ICRA AA/A1+ No change 14

34 ECL Finance Ltd ICRA AA/CRISIL A1+ No change 14

35 East-North Interconnection Company Limited CRISIL AAA(SO) No change 15

36 Edelweiss Agri Value Chain Limited CARE AA(SO) No change 15

37 Essel Lucknow Raibareli Toll Roads Limited CARE AAA No change 16

38 Fullerton India Credit Co. Ltd. CARE AAA/ICRA A1+ No change 16

39 HPCL Mittal Energy Ltd. and HPCL Mittal Pipelines ICRA AA+ Upgraded 16

40 Igarashi Motors Sales Pvt. Ltd . (IMSPL) ICRA AAA (SO) No change 17

41 IIFL Wealth Finance Ltd (IWFL) ICRA AA/A1+ No change 17

42 India Infoline Finance Ltd CRISIL AA/A1+ No change 17

43 Indostar Capital Finance Ltd CARE AA- No change 17

44 IOT Utkal Energy Services Ltd CRISIL AAA(SO) No change 18

45 Jana Small Finance Bank ICRA BBB No change 18

46 Karelides Traders Private Limited ICRA AA- (SO) No change 18

47 Manappuram Finance Ltd CARE AA/ A1+ No change 18

48 Muthoot Fincorp Ltd CRISIL A/BWR A+ No Change 19

49 Nabha Power Ltd ICRA AAA(SO)/ CRISIL A1+ No change 19

50 Nuvoco Vistas Corporation Ltd CRISIL AA No change 19

51 Jamnagar Utilities & Power Pvt Ltd CRISIL AAA No change 19

52 Powergrid Vizag Transmission Ltd. CRISIL AAA(SO) No change 20

53 Prestige Estates Projects Ltd ICRA A+ No change 20

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

CARE AA (SO)

Downgrade

20

55 Sahyadri Agencies Ltd. BWR A(SO) No change 21

56 SBK Properties Pvt. Ltd. ICRA AA- No change 21

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

ICRA AA-(SO) Downgraded 22

58 SP Jammu Udhampur Highways Ltd ICRA AAA(SO)) No change 22

59

Suraksha Realty Ltd CARE A1+(SO) No change

22

Suraksha Asset Reconstruction Co. Ltd

60 Tata Motors Finance Solutions CRISIL AA/ CARE A1+ No change 23

61 Tata Power Ltd. CRISIL AA-/ICRA A1+ No change 23

62 U P Power Corporation Ltd IND AA(SO)/A+(SO) No change 24

Holdings in our Fixed Income Funds as of 31st December 2018 25

Key Credit Brief

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Kotak Credit Process – Mitigating Risk through Robust Practices

Robust Credit Evaluation Process at Kotak MF

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New Credit

Bahadur Chand Investments Private Limited(ICRA AA)

Bahadur Chand Investments Private Limited and its parent, Brijmohan Lal Om Prakash’s (BMOP), are

the principal holding companies of Hero MotoCorp Limited (HMCL).

BCIPL has strong financial flexibility emanating from the market value of its investment in HMCL. It

holds 20% stake in HMCL

BCIPL and BMOP also hold equity and preference stake in a large number of group companies viz.

Hero FinCorp Limited, Hero Future Energies Private Limited (merged into Clean Solar Power Hariyur),

Rockman Industries Limited, Hero Electronix Private Ltd etc

Tata Communication Payment Solutions Ltd.(TCPSL)(CARE AA(SO))

TCPSL, is a wholly owned subsidiary of Tata Communications Ltd. (TCL). TCPSL is a banking and

financial services organization offering a one stop 'plug-and-play' infrastructure management solution

on a pay-per-use model to its clients.

The company provides payment solutions such as managed ATM services, managed hosted core

banking solutions, point of sale (POS) solutions, card issuance & management and financial inclusion

solutions. These services enable banks to focus on their core business, establish core banking

processes, customer acquisition and retention channels with minimum resource allocations.

Existing Credit

Century Textiles & Industries Ltd (CRISIL AA/A1+, CARE A1+)

Century Textiles & Industries Ltd (hereinafter, CTIL) was incorporated in 1897 and is the flagship

company of the BK Birla group. CTIL is promoted by Mr. B. K. Birla but after significant equity infusion,

Aditya Birla group now holds 50.21% stake in the company (as on March 31, 2018).

CTIL is a diversified conglomerate engaged in manufacturing of cement, textiles (cotton textiles,

viscose filament yarn, continuous spun yarn and rayon tyre yarn), pulp and paper (writing and printing

paper, tissue paper, paper board), chemicals (caustic soda, sulphuric acid, salt, etc.) and real estate.

CTIL has a total capacity of 13.1 tonne p.a. (tpa) cement across 6 manufacturing units located in

Chhattisgarh, Madhya Pradesh, Maharashtra and West Bengal. The company also has a multi-layer

packaging board facility with installed capacity of 18,000 tpa.

The company forayed into real estate business in 2010 and has two commercial real-estate projects

under its belt – Birla Aurora and Birla Centurion (both located in Worli, Mumbai). In FY18, CTIL set up

a wholly owned real-estate subsidiary – Birla Estates Pvt Ltd (BEPL). Century now plans to develop

residential projects in a mix of own and joint development agreements through BEPL.

In May 2018, CTIL’s Board approved a scheme for demerger of its cement division into Ultratech

Cement Ltd. CTIL obtained requisite approvals from Competition Commission of India and its own

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shareholders in Aug 2018 and Oct 2018, respectively. The deal is expected to be completed by end of

FY2019.

Godrej Properties Ltd (ICRA AA/A1+, CRISIL A1+)

Godrej Properties Ltd (hereinafter, GPL) is currently developing residential, commercial and township

projects spread across approximately 12 cities.

GPL is a part of the Godrej Group which is amongst India’s most diversified conglomerates. The Godrej

Group was established in 1897 and comprises of a varied business portfolio that includes real estate

development, fast moving consumer goods, advanced engineering, home appliances, furniture,

security, and agri-care.

In 2010, Godrej Properties became a publicly listed company through a successful IPO in which it

raised USD 100 million. It is one of India's only national developers with a strong presence across the

country's leading real estate markets.

The turnover has been in range of Rs 1,600 cr to Rs 2,200 cr in last 3 years with corresponding EBITDA

margin of 23%-28%.

Balance sheet structure is acceptable with gross gearing of 1.7x in FY’18. With capital raise of Rs

1,000cr post FY’18 gross gearing has improved to 1.1x (inc. Rs 1,000 cr capital in FY18 NW).

Operating cash flows have been strong at ~Rs 1,800 cr in FY’18 due to increased inventory liquidation.

Nayara Energy Limited (CARE AA)

Incorporated in 1989, Nayara Energy Limited (formerly known as Essar Oil Limited) is an Oil and Gas

company engaged in refining and marketing.

It owns India's second-largest single location Refinery (at Vadinar, Gujarat) having a capacity of 20

million metric tons per annum (mmtpa; equivalent to 140 million barrels) and high complexity, which

allows it to process crude oil with a blend of 23-30 API.

It can process wide variety of crude oil ranging from ultra-heavy, high sulphur, sour crude (i.e. low

API) to low sulphur light crude (i.e. high API) and has the flexibility to achieve the product slate based

on expected demand.

In August 2017, Essar Oil Limited (excluding Exploration & Production Division), along with its captive

port and power assets, was acquired by Petrol Complex Pte. Limited (49.13%), a company owned by

Rosneft Oil Company (a leader of Russia’s petroleum industry and second largest company in the

world in terms of hydrocarbon production and reserves) and Kesani Enterprises Company Limited

(49.13%), an investment consortium comprising of global commodity trading firm Trafigura Pte. Ltd.,

UCP PE Investments Ltd., and Oil Holding Limited at an enterprise value of USD 12.9 billion.

The equity value of transaction was USD 7.5billion

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Coastal Gujarat Power Ltd. (Guaranteed by Tata Power Co. Ltd) (CARE AA(SO))

CGPL had implemented a 4,150-MW Ultra Mega Power Project (UMPP) in Mundra in Gujarat. The

operations started in 2013.

CGPL has entered into Power Purchase Agreement (PPA) with DISCOMs in Maharashtra (760 MW),

Gujarat (1805 MW), Rajasthan (380 MW), Punjab (475 MW) and Haryana (380 MW) for 3,800 MW

power supply.

CGPL is a wholly owned subsidiary of Tata Power, which has a strong market position as integrated

power player. Tata Power is rated AA- by CRISIL.

Exposure on CGPL is guaranteed by unconditional and irrevocable guarantee of Tata Power.

JM Financial Asset Reconstruction Company (ICRA AA-/A1+, CARE AA-/ A1+, CRISIL AA-/A1+)

JMFAR is the asset reconstruction arm of JM Financial Group. It started operations in September 2008.

JM Financial Group owns 57.1% of JMFAR while the remaining shareholding is spread between

promoter group, public sector banks and institutional investors.

Asset reconstruction business involves acquisition and resolution of distressed debt assets sold by

banks or financial institutions

JMFAR initiates resolution of distressed assets either through a negotiated settlement with the entity

(one time settlement), or by undertaking a debt restructuring process (acquisition as going concern

and then attempt financial turnaround of the acquired company)

Total AUM of the entity is ~Rs 13,000 cr in FY’18. Majority of AUM is currently spread across

hospitality, real estate, pharmaceutical, textiles and ceramic industry

JMFAR had income of Rs 388 cr in FY18 with PAT of 108 cr. The company is well capitalized with gross

gearing of 1.4x in FY’18

Altico Capital India Pvt Ltd (IND AA-, ICRA A1+)

Altico was established in 2004 by Clearwater Capital Partners LLC as Clearwater Capital Partners India

Private Limited for wholesale lending to Indian SMEs. In January 2005, it was registered as a non-

deposit accepting NBFC with the Reserve Bank of India. Its business strategy initially focused on special

situation opportunities across capital structures.

In FY15 the company was rebranded to Altico Capital India Pvt. Ltd marking a change in the business

strategy. Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners have infused

a combined capital of US$ 300 million in Altico Capital India Pvt Ltd.

The company is mainly focused on senior secured lending to mid-income residential projects across

Tier-1 cities in India which include Mumbai, NCR, Chennai, Bangalore, Pune and Hyderabad. The

Company may look at commercial and other allied sectors (to real estate sector) in the future.

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Avendus Finance Pvt Ltd (CRISIL A+/A1+)

Avendus Finance Pvt Ltd (‘AFPL’) is an NBFC and a part of the Avendus Group.

AFPL provides financing solutions to its corporate clients through Structured Debt/Mezzanine/High

Yield products and assists in capital structuring as well as arranging financing for various requirements.

AFPL is a wholly owned subsidiary of Avendus Capital Private Limited (ACPL). Private equity firm

Kohlberg Kravis Roberts (KKR Group) owns around 65% in ACPL (parent of AFPL). ACPL is the flagship

company of the group and operates in M&A advisory, PE syndication and equity capital markets.

KKR became the dominant shareholder by infusing Rs 460 crores into ACPL to expand the financing,

wealth management, and other businesses in 2015.

Rent A Device Trust/Reliable Devices Trust (ICRA AAA(SO))

It is a securitization transaction through Pass-Through Certificates (PTCs) which are backed by rentals

due from Reliance Retail Limited (Renter/ RRL). The same receivables are assigned to the Rent a

Device Trust.

The same is rated as AAA(SO) by ICRA as the primary risk is predicated on Reliance Retail which is

rated as AAA.

Reliance Retail Limited is a step - down subsidiary of Reliance Industries Limited that owns about

94.4% stake in Renter through Reliance Retail Ventures Limited (RRVL).

RIL forayed into the retail business in 2006 and has supported the growth of this business over the

past decade through significant funding (total investments of ~Rs. 6,300 crore made as on March 31,

2018 in form of equity and convertible instruments) making RRL the largest retailer in the country.

Endurance Technologies Ltd (CRISIL AA/A1+)

Endurance Technologies was established in 1985 by Mr. Anurag Jain (nephew of Rahul Bajaj, Chairman

– Bajaj Auto).

Endurance Technologies, a listed company, is one of India’s leading automotive component

manufacturing companies for its product portfolio. The company began with manufacturing of

aluminum castings.

Over time it has grown organically in India, by diversifying into two and three wheeler suspension,

transmission and braking systems products. At the same time, the Company has successfully grown

inorganically through various strategic acquisitions in Europe. The Company derives 70% revenue

from India and the remaining 30% from Europe.

The domestic business is mostly 2-wheeler business with greatest revenue contribution coming from

aluminum casting (44% of domestic revenues) followed by suspension (34%), transmission (8%),

Braking (7%) and aftermarket and others (7%).

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In the Indian markets, the company primarily started as a supplier to Bajaj Auto. However, over the

years it has successfully added new customers like Hero MotoCorp, Honda Motorcycles and Scooters,

Royal Enfield, Yamaha, etc. In Europe, Endurance is a 4W aluminum casting supplier and caters to

customers like FCA Italy SpA (Fiat), Daimler, Jeep, etc.

Green Infra Wind Energy (ICRA A1+, CRISIL A1+)

GIWE is one of the major renewable independent Power Producers (with operational and under

construction assets of 1.05 GW) and is 100% owned by Sembcorp Green Infra Ltd (SGIL) which is

flagship renewable company of Sembcorp Group in India with total renewable power generation

capacity of 1.7 GW.

Sembcorp is a Singapore based group with focus on Utilities and offshore Engineering and has a

market cap of SGD 4.8 bn. Temasek Holdings owns 49.5% in Sembcorp.

All capacity of GIWE is tied up with State Government/Solar Energy Corporation Ltd and Power

Trading Corporation with 25 year PPAs giving long term revenue visibility and ensuring low offtake

risk.

Balance sheet of the GIWE is stronger than most renewable players in India with consol. Debt/Equity

of ~2.2x in FY18.

Our exposure in CPs is guaranteed by Sembcorp Green Infra Ltd (SGIL).

Utkarsh Small Finance Bank (ICRA A1)

Utkarsh SFB is promoted and helmed by Mr. Govind Singh in the capacity of Managing Director & CEO.

Mr. Singh has over three decades of experience in microfinance, banking and finance.

Total loan book as on FY18 was ~Rs 3,100 crores out of which ~90% is microfinance (under Joint

Lending Model) given the vintage of the group in microfinance space. The company has started

operations in Wholesale loans, MSME and Affordable Housing and expects to grow portfolio through

these segments.

~80% of book is concentrated in UP and Bihar given the vintage. However, this number is coming

down.

The entity is moderately capitalized with overall capital adequacy ratio of 17.4%.

The asset quality is under control with net NPA of 1.1% in FY18

AASAN Corporate Solutions Private Limited (ICRA AA-(SO))

The company is wholly-owned by Sri Krishna Trust, through its trustee Mr. Ajay Piramal.

The NCDs are secured by an unconditional, irrevocable and continuing guarantee by The Sri Krishna

Trust (SKT) and Piramal Management Services Private Limited (PMSPL) that would cover all obligations

that may arise on the rated NCDs.

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SKT holds 43.71% shareholding in Piramal Enterprises Limited (PEL) and is the single largest

shareholder in PEL

There is a borrowing cap of Rs 4,500 crores or 25% of market value of free and unencumbered listed

shares of PEL held by SKT.

Incred Financial Services Private Limited (CARE A/A1)

‘Visu Leasing and Finance Private Limited’ (VLF) is an NBFC and operates under brand name ‘InCred’.

VLF typically offers four kinds of loan products like

i. Personal Loans,

ii. Home Loans,

iii. Education Loans and

iv. SME Loans.

The InCred group lends through its new age financial services technology platform “InCred- credit for

Incredible India” that leverages technology and data-science to make lending quick and convenient.

The promoter, Mr. Bhupinder Singh (MBA, IIM Ahmedabad) has more than two decades of experience

in financial services sector (majority of experience in Deutsche Bank).

Overall loan book of VLF was Rs 1,892 crores which is well diversified across products classes and net

worth was Rs 602 crores in June 2018. The NBFC is well capitalized with Capital Adequacy ratio of

31.1% in June 2018, much higher than RBI requirement of 15%.

Jyothy Fabricare Services Limited (Guaranteed By Jyothi Laboratories Ltd.) (CARE AA(SO))

Jyothy Fabricare Services Ltd (JFSL), incorporated in 2008, is a subsidiary of Jyothy Laboratories Ltd

(JLL).

JFSL provides dry cleaning and laundry services, on B2B and B2C basis through two subsidiaries – Four

Seasons Dry Cleaning Co. Ltd. & Snoways Launderers and Drycleaners Pvt. Ltd.

Exposure to JFSL is guaranteed by Jyothy Laboratories Ltd. (JLL).

JLL, incorporated in 1983, is a well-known FMCG brand with product offerings in multiple segments -

detergents, soaps, toilet cleaners, personal care, household insecticides and insect repellents, etc. JLL

acquired Henkel India Ltd and Henkel Marketing India Ltd. in FY 2011-12.

Suhani Trading and Investment Consultants Pvt Ltd (Secured by Equity shares of Future Retails Ltd & Future Lifestyle Fashions Ltd.) (BWR A+(SO))

Promoter entity of Future Group (Kishore Biyani Group).

Transaction structured as Loan Against Shares (LAS).

Transaction has a security cover of 1.35x of Future Retail (FRL) and 0.25x of Future Lifestyle Fashions

Limited (FLF). Further, 0.25x shares of FRL and FLF (in the same ratio of cover) will be kept in a separate

demat account.

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Also, personal guarantee of Kishore Biyani.

Punjab National Bank (India Ratings A+, CARE AA-, CRISIL AA, BWR AA for Additional Tier 1 Bonds)

Punjab National Bank is the second largest Public Sector Bank in India.

Govt. of India (GOI) owns 62.25% in PNB and Life Insurance Corporation (LIC) owns around 12.24%

(Jun 30, 2018).

As on Sep 30, 2018 PNB had - total capitalization of 10.08% with Common Equity (CET1) of 6.49%;

substantial distributable reserves (~Rs 9,560 crs). PNB has reported net loss of Rs 5,472 crores for the

half year ended on Sep 30, 2018.

PNB raised equity of around Rs 5,000 crores from institutional investors in Dec’17. Earlier this year

(FY 2018-19), PNB received Rs. 2,816 crs as a part of the government’s bank recapitalization plan.

The Bank board has approved proposal to seek capital support of Rs. 5,431 crs from the government.

Sarvoday Advisory Services Pvt. Ltd. (BWR A(SO))

Sarvoday Advisory Services Pvt. Ltd. is owned by the Sajjan Jindal Family Trust.

Transaction structured as Loan Against Shares (LAS).

Transaction has a security cover of 2.00x in the form of pledge of listed shares of JSW Steel and JSW

Energy.

Bharti Telecom Ltd. (CRISIL A1+)

Bharti Telecom Ltd. (BTL) is promoted by Bharti group and Singtel, Singapore.

BTL holds ~50% shareholding of Bharti Airtel Limited (BAL) (June’18).

Market value of BTL’s holding in BAL is around Rs 62,459.38 crs (Dec 31, 2018) which provides financial

flexibility to the Company.

Future Lifestyle Fashions Ltd. (CRISIL AA-)

Future Lifestyle Fashions Limited (FLF), a part of Future Group, operates in fashion retail and

distribution and has pan-India presence.

FLF operates its retail outlets in three broad formats – Central (big-box fashion retailer), Brand Factory

(fashion discount chain) and Exclusive Brand Outlets (Planet Sports, etc.).

FLF owns a portfolio of both owned / licensed brands and has also invested in various investee brands.

It has 8 owned, 10 licensed and 13 investee brands.

Product-wise, FLF has 19 brands in the pure apparel category and 12 brands in non-apparel categories

like sports / active wear, footwear, accessories and others.

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Aarish Solar Power Ltd. / Aashman Energy Pvt. Ltd. / Divyesh Power Pvt. Ltd. / Elena Renewable Energy Pvt. Ltd. / Pratyash Renewable Pvt. Ltd. / SEI Baskara Power Pvt. Ltd. / SEI Enerstar Renewable Energy Pvt. Ltd. / SEI Mihir Energy Pvt. Ltd. / Zuvan Energy Pvt. Ltd. /Shreyas Renwable Energy Pvt. Ltd (CARE AA-(SO))

The above mentioned companies are SPVs of Greenko Group and involved in solar power generation.

Greenko is majorly owned by marquee investors such as GIC, Singapore and Abu Dhabi Investment

Authority.

Each SPV has set-up solar plant with capacity of 50MW each. Plants at all SPvs are operational,

supplying power to NTPC under a long term Power Purchase Agreement (PPA).

Exposure is further secured by Corporate Guarantee from Greenko Energies Pvt Ltd (one of the major

holding company for Greenko Group in India).

Adani Infra (India) Ltd: (BWR AA-(SO))

Adani Infra is a part of the Adani group of companies.

The NCDs are secured by 1.5x pledge of shares of Adani Ports & SEZ (market capitalization of ~Rs.

80,290.80 crs as on Dec 31,2018), 0.3x of Adani Enterprise (market capitalization of ~Rs. 17,706.94 crs

as on Dec 31, 2018) and 0.2x of Adani Transmission Limited (market capitalization of ~Rs. 22,051.91

crs as on Dec 31, 2018).

Aspire Home Finance Corporation Ltd (ICRA A+)

Aspire Home Finance (AHF) is the housing finance arm of Motilal Group. AHF started its lending

operations in May 2014, primarily offering housing loans to individuals.

As on Mar 31, 2018 Motilal Oswal Financial Services Ltd (MOFSL), directly and indirectly, held 92%

stake in the company.

AHF has a track record of 4+ yrs. As on Mar 31, 2018 AHF had total loan book of ~Rs. 4,900 cr, 120

branches and ~1200 employees.

ASF is step-down subsidiary of MOFSL, one of India’s leading providers of Capital market related

services.

MOFSL and its subsidiaries are engaged in wealth management, broking services, structured lending,

margin financing and investment banking.

Ananta Landmarks Pvt Ltd (Unrated)

Ananta Landmarks Pvt Ltd (‘ALPL’) is a part of the Kalpataru Group, a leading real estate developer

based in Mumbai. ALPL was incorporated in January 2002.

Kalpataru Group, founded in 1969 by Mr. Mofatraj Munot, has a well-diversified presence in real

estate development, power generation, transmission & distribution projects, road-bridges, civil

contracting, plastic processing, office supplies, property management and international trading.

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In last 17 years, Kalpataru Group has completed 38 projects having saleable area of over 136 lakhs sq.

ft. in Mumbai, Thane & Pune and is in process of developing new 81 lacs sq. ft. in Mumbai, Thane,

Pune & Chennai.

Lending to ALPL is secured against a parcel of land, with a minimum security cover of 1.75x and also

personal guarantee from Mr. Parag Munot (promoter of Kalpataru Group). The company has already

received approval for development of part of the land.

AU Small Finance Bank Ltd: (AA-/A1+ by CRISIL, ICRA, India Ratings and CARE)

Au Financiers Ltd. (AUF) is a Rajasthan-based small finance bank, 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.

In 2003, AUF started generating portfolio for HDFC Bank as a channel partner.

In 2008, AUF received the first of its multiple private equity capital infusions. Subsequently, it started

originating portfolio on its own book and saw a rapid growth trajectory thereafter.

Asirvad Microfinance Pvt. Ltd. (CRISIL A+)

Asirvad Microfinance Pvt. Ltd. (AMPL) is an NBFC-MFI acquired by Manappuram Finance Ltd, which

held 92% stake in AMPL in April 2018.

In operation since Jan 2008; AMPL presently operates pan-India with a total of 832 branches (March

2018); 4,200 employees (March 2018); managed portfolio of Rs. 2,437 crs (March 2018).

AMPL was promoted by Mr. SV Rajavaidyanathan, an IIT-IIM alumnus and former President at

Reliance Retail Ltd, Chennai. He has ~30 years of experience in financial services. The other promoter

is his brother Mr. SV Krishnamurthy, a qualified CA and CS. He promoted a financial BPO that has now

been taken over by Sundaram Finance.

The Management comprises of professionals who have relevant experience and skills in Banking,

Microfinance, Finance and HR to carry out their responsibilities.

As at Mar 31, 2018 AMPL was held by Manappuram Finance (92%) & SV Rajavaidyanathan (8%)

Barclays Investments & Loans (INDIA) LTD. (ICRA AAA / A1+)

Barclays Investment & Loans (India) Ltd (BILIL) is wholly owned by Barclays group (57.84% held by

Barclays Bank Plc and 42.16% held by Barclays Mauritius Overseas Holdings Limited).

BILIL’s core business is provisions of Loans Against Security (LAS) and mainly caters to ultra HNIs and

commercial entities owned by these HNIs. These facilities are primarily offered to HNI and ultra-HNI

clients of Barclays Wealth.

The company provides loans against financial security only. Its credit facilities are specifically designed

to meet the clients’ need for liquidity support against financial assets such as - equity shares, mutual

fund units, bonds, debentures, etc. Most of these loans are short-term in nature

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Birla TMT Holding Pvt Ltd. (CRISIL A1+), TGS Investment & Trade Pvt Ltd. (ICRA A1+), Trapti Trading & Investments Pvt Ltd (ICRA A1+), Turquoise Investments and Finance Pvt Ltd (CRISIL A1+)

The above mentioned entities are promoter companies of Aditya Birla Group and hold stakes in listed

entities of Aditya Birla Group, which provides them strong financial flexibility. These NBFCs mainly

invests in shares and provide finance to listed and unlisted group entities. The entities are ultimately

owned by Mr. Kumar Mangalam Birla.

Bhopal Dhule Transmission Company Limited (CRISIL AAA)

BDTCL, a step-down subsidiary of Sterlite Power Transmission Limited was transferred to Sterlite

Group’s recently floated InvIT, India Grid (IndGrid) InvIT.

BDTCL is a power transmission project involving 8 elements, which include 6 transmission lines & 2

substations in the state of MP, Maharashtra & Gujarat. It has 765 kV S/C transmission lines of 891

circuit km (ckm) and 400 kV D/C lines of 53 ckm in Indore-Bhopal-Jabalpur region and Vadodara-

Dhule-Aurangabad region along with two substations at Bhopal and Dhule.

Project is implemented on Build, Own, Operate and Maintain (BOOM) basis and has a transmission

service agreement (TSA) in place for 25 years, extendable by 10 years.

Commission of the project was completed in June 2015 and has been operating at healthy average

line availability of above 99.50%.

Power Grid Corporation of India Ltd. (PGCIL) acts as the Central Transmission Utility (CTU) and is

responsible for billing, collecting transmission charges from the discom’s and distributing the same

among service providers.

Konti Infrapower & Multiventures 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.

As on December 31, 2018, promoters held 42% stake in ZEE Entertainment Enterprises, valued at Rs.

19,219.73 cr on a market cap of Rs.45,761.26 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.

Key Credit Brief

Page | 14

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

DHFL, since 1984, primarily provides housing finance to individuals, especially to the low and lower-

middle-income groups in Tier-II and Tier-III cities. It also offers non-housing loans such as LAP and

developer loans.

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. It 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 ~1,10,000

cr as on March 31, 2018. DHFL reported net profit of Rs. 1,172 crs in FY18 v/s PAT of Rs. 2,896 cr for

FY17.

In FY17, Board of DHFL had approved the sale of investments in DHFL Pramerica Insurance Company

Ltd (DPLI) to its wholly owned subsidiary DHFL Investments Limited. This transaction resulted in a

gain of Rs. 1,969 crs to DHFL in FY17.

Dalmia Cement Bharat Ltd (ICRA AA/A1+)

DCBL is the cement-business holding company of the Dalmia group. In last 5 yrs, DCBL has enhanced

capacities by way of brownfield and greenfield expansion and Dalmia group has accelerated its growth

through strategic acquisitions.

DCBL holds 75% stake in OCL India Ltd, a major cement player in eastern India with a capacity of 6.7

MT.

DCBL has established its North-East footprint by acquiring 3 cement plants - Calcom Cement, Adhunik

Cement and JP Bokaro Cement resulting in DCBL’s total capacity rising to ~24 MT, making it the 3rd

largest cement group in India.

With a strong presence and robust market share in South and NE India, DCBL company benefits from

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

relatively attractive cement markets of Tamil Nadu and Kerala. In TN and Kerela, DCBL 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.

ECL Finance Ltd (ICRA AA, CRISIL A1+)

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.

Key Credit Brief

Page | 15

Edelweiss Agri Value Chain Limited (CARE AA(SO))

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

EAVCL is a step-down, wholly-owned subsidiary of flagship company Edelweiss Financial Services

Limited (EFSL).

EAVCL offers services spanning the entire agricultural 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 – i) sourcing and storage of commodities, and ii) collateral and

warehouse management, in which EAVCL holds client stocks and facilitates financing through partner

banks against these stored commodities.

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

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

Technologies, is the developer of 2400 kV double circuit power transmission lines connecting Assam

with West Bengal & Bihar.

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 Licensee

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.

Key Credit Brief

Page | 16

Essel Lucknow Raibareli Toll Roads Limited: (CARE AAA)

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

Essel Group.

ELRTRL has implemented and is 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, and 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.

Fullerton India Credit Co. Ltd: (CARE AAA, ICRA A1+)

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.

HPCL Mittal Energy Ltd. (HMEL) and HPCL Mittal Pipelines (ICRA 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 i.e. 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 directors 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.

Key Credit Brief

Page | 17

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.

Igarashi Motors Sales Pvt. Ltd. (IMSPL) (ICRA AAA(SO))

IMSPL was promoted as a joint venture by erstwhile Agile Electric Drives Technologies and Holdings

Pvt Ltd (which was amalgamated with Agile Electric Sub Assembly Pvt Ltd (AESPL) in 2011) and ABV

Engineers and Consultants Private Limited (ABV).

On May 11, 2017, Mr. P Mukund, acquired 100% stake of IMSPL from AESPL and ABV. Mr. Mukund is

the Managing Director of Igarashi Motors India Limited.

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.

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

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

Limited (IWML).

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

IIFL Holdings Limited holds a 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 (market

capitalization of Rs. 16,087.24 cr as on Dec 31, 2018.), which is the holding company of the India

Infoline group

India Infoline Finance Ltd is the NBFC arm of the group and gives loans against gold, real estate, CV,

medical equipment and margin funding.

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.

Key Credit Brief

Page | 18

ICF has a policy of maintaining adequate liquidity on balance sheet and does not do unsecured

lending.

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

IOTUL is a SPV 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.3,553 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.

Jana Small Finance Bank Ltd (ICRA BBB)

Jana Small Finance Bank Ltd. (JSFB, erstwhile Janalakshmi Financial Services Private Ltd) received its

final license from RBI in March 2018, which permitted it to commence operations as a small finance

bank.

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

Company has raised fresh capital of Rs 1,636 crores since Nov 2016 and a large part of the equity has

gone towards meeting credit losses / provisioning.

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

NCDs issued by Karelides Traders Pvt Ltd. 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.

Manappuram Finance Ltd (CARE AA/ A1+)

Manappuram Finance (MFL) 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.

As on Oct 31, 2018 the company was operating through 4208 branches across 28 states.

MFL enjoys robust capitalization and stable, diverse funding sources. It had AUM of Rs. 16,618 crores

as on Jun 30, 2018 and net worth of Rs. 3,936 crores on Jun 30, 2018 (on standalone basis).

Key Credit Brief

Page | 19

Muthoot Fincorp Ltd. (CRISIL A/ BWR 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 operates out of 3,700 branches across India.

Nabha Power Ltd (ICRA AAA(SO), CRISIL A1+)

Nabha is a 100% indirect subsidiary of Larsen & Toubro. Nabha was awarded a 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.

Nuvoco Vistas Corporation Ltd (CRISIL AA)

Nuvoco Vistas Corporation Ltd is a 100% subsidiary of Nirma. Nuvoco Vistas Corporation was created

with the merger of Nirma’s SPV Nirchem (which was floated to acquire Lafarge India) and Lafarge

India.

Nuvoco has plants in Searles Valley (United States), and in Gujarat and Rajasthan in India. 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 was set up in 1980 by Dr Karsanbhai K Patel to manufacture detergents, and is a privately held

company operations to soaps, chemicals, allied products, and also processing minerals.

Nirma is a 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.

Jamnagar Utilities & Power Pvt Ltd: (CRISIL AAA)

Jamnagar Utilities & Power Pvt. Ltd. (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.

Key Credit Brief

Page | 20

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. 8,246.25 crs (as on Dec 31, 2018).

Established in 1986 and 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.

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 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.

S D Corporation Private Limited (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd – DSRA guarantee for NCD and corporate guarantee for CPs) (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.

Key Credit Brief

Page | 21

SP Group is a consortium of companies held by the Mistry Family and has diversified businesses across

sectors like construction, water purification, infrastructure development, etc.

Shapoorji Pallonji & Co. Pvt Ltd (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.

Sahyadri Agencies Ltd. (BWR A(SO))

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

The promoter holds ~67% stake in Jyothy Labs (valued at Rs. 5,205.82 crs on a market cap of Rs.

7,769.88 crs as on Dec 31, 2018). These NCDs are in the nature of promoter funding, secured by pledge

of shares of Jyothy Laboratories Ltd (minimum cover of 2x) 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. 23,683.56 crore (Dec

31, 2018) 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.

Key Credit Brief

Page | 22

Shapoorji Pallonji Energy Gujarat Private Limited (backed by unconditional and irrevocable DSRA 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 DSRA guarantee from Shapoorji Pallonji & Co.

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 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 NCD holders 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+(SO)); Suraksha Asset Reconstruction Co. Ltd (CARE A1+(SO))

Suraksha Realty and Suraksha Asset Reconstruction Co. are owned by the promoter group of Sun

Pharmaceutical Industries Ltd (rated AAA / A1+ by Crisil).

Established by Mr. Dilip Shanghvi in 1983, Sun Pharma today has a market capitalization of about

Rs.1,03,290.92 crs (as on Dec 31, 2018).

Key Credit Brief

Page | 23

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, CARE 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 to TMFS. Additionally TMFS will also engage in financing of construction equipment

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 is expected to

receive significant support from Tata Motors.

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.

Tata Power Ltd. (CRISIL AA-, ICRA 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 utilized 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.

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)

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.

Key Credit Brief

Page | 24

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.

U P Power Corporation Ltd (India Ratings AA (SO)/A+(SO))

U P Power Corporation Limited (“UPPCL” or “the Company”) is a power distribution company wholly

owned by the UP Government (GoUP). The Company has issued bonds, to fund its operations, under

the provisions of the UDAY (Ujwal DSICOM Assurance Yojana) agreement.

The Company has issued bonds under two structures.

Under the structure rated AA(SO), the bonds are secured by charge on receivables of UPPCL and also

have Reserve Bank of India-backed structured payment mechanism which will ensure timely servicing

of obligations on the bonds.

Under the structure rated A+(SO), the bonds are secured by charge on receivables of UPPCL and also

have a structured payment mechanism which involves charge on subsidy receivables from GoUP.

Both the structures have escrow mechanism wherein daily collections will be deposited into escrow

a/c which will be used for servicing of bonds. Further, these are secured by an unconditional and

irrevocable guarantee from Govt. of Uttar Pradesh.

Key Credit Brief

Page | 25

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Credit PapersKotak Banking

and PSU Debt Kotak Bond

Kotak Bond

Short Term Plan

Kotak Corporate

Bond Fund

Kotak Credit

Risk Fund

Kotak Dynamic

Bond Fund

Kotak Low

Duration Fund

Kotak Mahindra

Liquid Scheme

Kotak Medium

Term Fund

Kotak Money

Market Scheme

Kotak Savings

Fund

Aarish Solar Power Ltd.

Aasan Corporate Solutions Pvt. Ltd.

Aashman Energy Pvt. Ltd.

Adani Infra (India) Limited.

Altico Capital India Pvt Ltd

Ananta Landmarks Pvt Ltd.

Asirvad Microfinance Private Limited

AU Small Finance Bank Ltd.

Avendus Finance Pvt Ltd.

Bharti Telecom Ltd.

Bhopal Dhule Transmission Company Ltd.

Century Textiles & Industries Ltd.

Coastal Gujarat Power Ltd.

Dalmia Cement (Bharat) Ltd

Dewan Housing Finance Corporation Ltd.

Divyesh Power Pvt. Ltd.

East-North Interconnection Company Limited

ECL Finance Ltd.

Edelweiss Agri Value Chain Ltd.

Elena Renewable Energy Pvt. Ltd.

Essel Lucknow Raebareli Toll Roads Limited

Fullerton India Credit Co. Ltd.

Future Lifestyle Fashions Ltd.

Godrej Properties Limited

Green Infra Wind Energy Ltd.

HPCL Mittal Energy Ltd.

Igarashi Motors Sales Pvt. Ltd.

INCRED FINANCIAL SERVICES PRIVATE LIMITED

India Infoline Finance Limited

IOT Utkal Energy Services Ltd.

JAMNAGAR UTILITIES & POWER PRIVATE LIMITED

Jana Small Finance Bank Ltd.

Jyothy Fbricare Services Ltd.

Karelides Traders Pvt. Ltd.

Konti Infrapower & Multiventures Pvt. Ltd.

Manappuram Finance Ltd.

Muthoot Fincorp Ltd.

Nabha Power Ltd.

Nayara Energy Limited

Nuvoco Vistas Corporation Ltd.

Powergrid Vizag Transminssion Ltd.

Pratyash Renewable Pvt. Ltd.

Prestige Estates Projects Limited

Punjab National Bank

Reliable Devices Trust

Rent A Device Trust

S D Corporation Pvt. Ltd.

Sahyadri Agencies Ltd

Sarvoday Advisory Services Pvt. Ltd.

SBK Properties Pvt Ltd.

SEI Baskara Power Pvt. Ltd.

SEI Enerstar Renewable Energy Pvt. Ltd.

SEI Mihir Energy Pvt. Ltd.

Shreyas Renwable Energy Pvt. Ltd.

SP Jammu Udhampur Highway Ltd.

Suhani Trading and Investment Consultants Pvt Ltd

Suraksha Realty Ltd.

Tata Communication Payment Solutions Ltd.

U P Power Corporation Ltd

Utkarsh Small Finance Bank Ltd.

Zuvan Energy Pvt. Ltd.

Select Statement of Holdings in our Fixed Income Funds as on 31st Dec 2018

Key Credit Brief

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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.