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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 24

Sr no:

Credit Papers Ratings *Upgrade/ Downgrade

Page no.

(A) Kotak Credit Process 3

(B) New Credits taken in the month of March

1 Indus Towers Limited CRISIL AA+/A1+ No Change 4

2 Manav Investment And Trading Co. Ltd ICRA AAA(SO) No Change 4

3 Existing Credit

4 Azim Premji Trusts ICRA A1+ No Change 5

5 Jyothy Fabricare Services Limited CARE AA(SO) No Change 5

6 Suhani Trading and Investment Consultants Pvt Ltd BWR A + (SO) No Change 5

7 Punjab National Bank

CARE AA- IND AA BWR AA (Additional Tier1 Bonds)

No Change 6

8 Muthoot Capital Services Limited CRISIL A1 No change 6

9 Sarvoday Advisory Services Pvt. Ltd BWR A(SO) No change 6

10 Tata Communication Payment Solutions Ltd CARE A1+(SO) No change 7

11 Bharti Telecom Ltd CRISIL A1+ No change 7

12

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 7

13 Future Lifestyle Fashions Ltd CRISIL AA- No change 7

14 Adani Infra (India) Ltd BWR AA-(SO)) No change 8

15 Aspire Home Finance Corporation Ltd ICRA AA- No change 8

16 Altico Capital India Private Limited IND AA-/A1+ No change 8

17 Ananta Landmarks Pvt Ltd. Unrated No change 8

18 AU Small Finance Bank Ltd. FITCH A+(IND) No change 9

19 Asirvad Microfinance Pvt. Ltd CRISIL A+ No change 9

20 Barclays Investments & Loans ICRA AAA / A1+ No change 9

21 Bhopal Dhule Transmission Company Limited CRISIL AAA No change 10

22

23

Birla TMT Holding Pvt Ltd, Turquoise Investments & Finance Pvt Ltd CRISIL A1+ No change 10

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

24 Continental Drug Company Pvt Ltd / Edison Utility Works Pvt.Ltd. BWR A+(SO) No change 10

25 Dewan Housing Finance Corp Ltd CARE AAA/A1+ No change 11

26 Dalmia Cement Bharat Ltd ICRA AA/A1+ No change 11

27 East-North Interconnection Company Limited CRISIL AAA(SO) No change 12

28 ECL Finance Ltd CARE AA No change 11

Key Credit Brief

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*Upgrade/Downgrade change for the March month.

29 Edelweiss Agri Value Chain Limited ICRA AA/A1+ No change 12

30 Essel Lucknow Raibareli Toll Roads Limited IND AAA(SO) No change 13

31 Ford Credit India Private Limited IND A1+ No change 13

32 Fullerton India Credit Co. Ltd. CARE AAA No change 13

33 HPCL Mittal Energy Ltd. and HPCL Mittal Pipelines ICRA AA No change 14

34 Igarashi Motors Sales Pvt. Ltd . (IMSPL) ICRA AAA (SO) No change 14

35 IIFL Wealth Finance Ltd (IWFL) ICRA AA/A1+ No change 15

36 India Infoline Finance Ltd CRISIL AA/A1+ No change 15

37 Indostar Capital Finance Ltd CARE AA- No change 15

38 Intime Properties Ltd. FITCH AAA(SO) No change 16

39 IOT Utkal Energy Services Ltd CRISIL AAA(SO) No change 15

40 Janalakshmi Financial Services ICRA A- No change 16

41 Karelides Traders Private Limited ICRA AA- (SO) No change 17

42 Manappuram Finance Ltd CARE AA/ A1+ No change 17

43 Muthoot Fincorp Ltd CRISIL A- No change 17

44 Nabha Power Ltd ICRA & CRISIL AAA(SO)

No change 17

45 Nuvoco Vistas Corporation Ltd CRISIL AA No change 18

46 Powergrid Vizag Transmission Ltd. CRISIL AAA(SO) No change 18

47 Reliance Utilities and Power Pvt. Ltd. CRISIL AAA No change 18

48 Prestige Estates Projects Ltd ICRA A+ No change 19

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

CARE AA+(SO)/A1+(SO)

No change 19

50 Sahyadri Agencies Ltd. BWR A(SO) No change 20

51 SBK Properties Pvt. Ltd. ICRA AA- No change 20

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

ICRA AA(SO) No change 20

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

BWR & IND AA-(SO) No change 21

54 SP Jammu Udhampur Highways Ltd ICRA AAA(SO)) No change 21

55

56

Suraksha Realty Ltd CARE A1+(SO) No change 22

Suraksha Asset Reconstruction Co. Ltd

57 Tata Motors Finance Solutions CRISIL AA/ CARE A1+ No change 22

58 Tata Power Ltd. CRISIL AA-/ICRA A1+ No change 22

59 U P Power Corporation Ltd IND AA(SO) No change 23

60 Varun Beverages Limited CRISIL AA- / A1+ No change 23

61 Holdings in our Fixed Income Funds as of 31st March 2018 24

Key Credit Brief

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Kotak Credit Process – Mitigating Risk through Robust Practices

Robust Credit Evaluation Process at Kotak MF

Key Credit Brief

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New Credit taken in the month of March

Indus Towers Limited (CRISIL AA+/A1+)

Indus Towers Ltd.(ITL) is the largest player in the telecom towers market and owns and operates

28% of the telecom towers in India. ITL was incorporated in November 2007, and was promoted

under a JV between entities of Bharti Infratel Limited, Vodafone India and Aditya Birla Telecom

(Idea) to render passive infrastructure services to telecom service providers.

As on Dec 31, 2017 the company had 1,22,962 towers in 15 circles around the country. Indus has

the widest coverage in India and currently ~60% of traffic in India is handled by Indus Towers Ltd.

ITL is well positioned in the passive infrastructure services industry as it benefits from tenancy

arrangements with its promoters, Bharti Airtel, Vodafone India, and Idea Cellular, which control

over 70% of the revenue market share in the telecom space.

Manav Investment And Trading Co. Ltd (rated AAA(SO) by ICRA)

Manav Investment and Trading Company Limited (Manav) is a holding company and has

investments in specific listed companies of the B.K. Birla Group. The operating income for Manav

is primarily derived from guarantee fees and dividend income from its investments. Manav is one

of the promoter of Kesoram Industries Limited. Manav is also classified as part of

Promoter/Promoter Group in other Birla Group companies like Grasim, Hindalco, Aditya Birla

Capital, etc. The exposure is secured by charge (security cover of ~1.5 times at present market

value of security) on share portfolio of various Birla Group Companies.

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.

Key Credit Brief

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Existing Credits

Azim Premji Trusts (ICRA and Brickworks A1+)

Azim Premji Trusts (APT) is a part of the promoter group of Wipro Limited. It is a discretionary

trust whose beneficiaries are - Azim Premji Philanthropic Initiatives Private Limited and Azim

Premji Foundation for Development as its beneficiaries. It is the endowment vehicle for the Premji

Family’s philanthropic initiatives. The trustee for APT is Azim Premji Trustee Company Private

Limited. APT, directly and indirectly, holds ~34% stake in Wipro Ltd. (Jan 2018).

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

Jyothy Fabricare Services Ltd (JFSL) was incorporated in 2008 as a subsidiary of Jyothy

Laboratories Ltd (JLL). JFSL provides dry cleaning and laundry services to individual as well

business clients vide its two subsidiaries – Four Seasons Dry Cleaning Co. Ltd. and Snoways

Launderers and Drycleaners Pvt. Ltd.

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

JLL, a FMCG company incorporated in 1983, is today a well-known household brand with product

offerings in multiple segments - detergents, soaps, toilet cleaners, personal care, household

insecticides and insect repellents, etc. The company acquired Henkel India Ltd and Henkel

Marketing India Ltd., in FY2012. The acquisition widened and strengthened the range of JLL’s

product offerings. Today, some of JLL’s well-known brands include Ujala, Henko, Exo, Pril

(detergents, and dishwashing soaps); Margo (personal care); and, Maxo (insect repellent).

Suhani Trading and Investment Consultants Pvt Ltd (Secured by Equity shares of Future Retails Ltd &

Future Lifestyle Fashions Ltd.)

Suhani Trading & Investment Consultants Pvt Limited is a promoter entity of Future Group

(Kishore Biyani Group).

The transaction has been structured as Loan Against Shares (LAS). The transaction has a security

cover of 1.35 times of Future Retail (FRL) and 0.35 times 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. It also has a personal guarantee of Kishore Biyani.

Key Credit Brief

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Punjab National Bank (CARE AA-/ India Ratings AA/ Brickworks AA for Additional Tier1 Bonds)

Inspite of recent development of fraud, the credit profile of the Bank has following strengths:

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

As on Dec’17 – Govt. of India owns 57.04% in the Bank and Life Insurance Corporation (LIC) owns

around 13.9% stake

The Bank has raised equity of around Rs 5,000 crores by selling shares to institutional investors

in Dec’17

Further, the Bank will receive Rs 5,473 crores of equity from Govt. of India as a part of re-

capitalisation plan of Govt. of India

As on Dec’17 the Bank had total capitalisation of 11.58% with Common Equity (CET1) of 8.05%

The Bank has substantial distributable reserves (~Rs 27,000 crs)

The Bank has reported net profit of Rs 1,134 crores for nine months ended on Dec’17 (9MFY18)

Muthoot Capital Services Limited (CRISIL A1)

Muthoot Capital Services Ltd (MCSL) is an NBFC promoted by the Muthoot Pappachan Group

(MPG). It was established in 1994 and mainly provides vehicle loans and loans against consumer

durables.

Capitalisation of MCSL has improved as the company has raised Rs 165 crores equity via qualified

institutional placement in Nov’2017

The Muthoot Pappachan Group is 130 year old business group. The group has diversified business

interests across sectors like financial services, hospitality, automotive, realty, IT services,

healthcare, precious metals, global services and alternate energy.

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

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

The transaction has been structured as Loan Against Shares (LAS). The transaction has a security

cover of 2.00 times in the form of pledge of listed shares of JSW Steel and JSW Energy.

Key Credit Brief

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Tata Communication Payment Solutions Ltd. (CARE A1+ (SO))

TCPSL, erstwhile Tata Communications Banking Infra Solutions Ltd. is a wholly owned subsidiary of Tata Communications Ltd.

TCPSL 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. The transaction is backed by Letter of Comfort from Tata Communications (Rated AA+/A1+ by CARE Ratings).

Bharti Telecom Ltd. (CRISIL A1+)

Bharti Telecom Ltd. (BTL) is a company promoted by Bharti group and Singtel, Singapore. As on Sept’17, BTL holds ~45% shareholding of Bharti Airtel Limited (BAL). The market value (on 12th December 2017) of BTL’s holding in BAL is around Rs 95,000 crores which provides financial flexibility to the Company.

Future Lifestyle Fashions Ltd. (CRISIL AA-)

Future Lifestyle Fashions Limited (FLF) is part of Future Group. The company’s main business

involves fashion retail and distribution. FLF operates its retail outlets in three broad formats,

namely Central (big-box fashion retailer), Brand Factory (fashion discount chain) and Exclusive

Brand Outlets (Planet Sports etc). The Company has pan-India presence.

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

brands. FLF has eight owned and 10 licensed brands, comprising six power brands, and a collection

of 13 investee brands. Product-wise, FLF has 19 brands which serve pure apparel category while

12 brands serve non-apparel categories like sports / active wear, footwear, accessories and

others.

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 which are in solar power generation.

Greenko Group 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). The facilities are

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

company for Greenko Group in India).

Key Credit Brief

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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.77,994 crs as on September 30 2017), 0.3x

of Adani Enterprise and 0.2x of Adani Transmission Limited.

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 4 yrs and had

total assets of Rs.4,314 cr as on Jun 30, 2017, with 120 branches and over 1000 employees. As on

March 31, 2016 Motilal Oswal Securities Ltd and Motilal Oswal Financial Services Ltd held 98%

stake in the company; 2.7% stake was held by CEO Anil Sachidanand (with a ~3% ESOP base due

to vest in next 2-3 yrs)

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

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.

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 was founded in 1969 by Mr. Mofatraj Munot. The Group 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. During the last 17 years, Kalpataru Group has completed 38 projects having

saleable area of over 136 lakhs sq. ft. in Mumbai, Thane & Pune and is currently involved in

development of new 81 lacs sq. ft. in Mumbai, Thane, Pune & Chennai.

The lending is to ALPL is secured against a parcel of land and 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.

Key Credit Brief

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AU Small Finance Bank Ltd.: (FITCH A+(IND))

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. 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.

Asirvad Microfinance Pvt. Ltd. (CRISIL A+)

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

which held 90% stake in AMPL as on March 31, 2017. AMPL has been operating since Jan 2008; it

presently operates in 18 states with a total of 803 branches. As at Mar-2017, it had an AUM of Rs.

1731 cr with FY17 net profit of Rs. 34 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.

As at March 31, 2017 AMPL was held by Manappuram Finance (90.38%) and S.V. Raja

Vaidyanathan (8.48%).

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 it 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.

Key Credit Brief

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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 abovementioned 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 was step-down subsidiary of Sterlite Power Transmission Limited and was transferred to

India Grid (IndGrid) InvIT, Sterlite Group’s recently floated 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. The project is implemented on Build, Own, Operate and

Maintain basis (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), is acting as the Central Transmission Utility (CTU)

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

same among service providers.

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. As on September 30, 2017, promoters held 43% stake in ZEE

Entertainment Enterprises, valued at Rs. 21,470 cr on a market cap of Rs.49,934 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

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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 ~90,000 cr. DHFL reported net profit of Rs. 2896 cr in FY17 v/s PAT

of Rs.729 cr for FY16.

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. 6,943 cr on Sep 30, 2017), 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.

DCBL has a 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.

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.

Key Credit Brief

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

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

Technologies, 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 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.

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 offers services spanning 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 – 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.

Key Credit Brief

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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 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, 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.

Ford Credit India Private Limited (India Ratings A1+)

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.

Key Credit Brief

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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 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.

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. P. Mukund is Managing Director of Igarashi Motors India Limited.

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.

Key Credit Brief

Page | 15

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 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.

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.19,338 cr as on Sep 30,

2017). 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. 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 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.

Key Credit Brief

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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.

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.

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 is likely to commence

its banking operations by Q4FY18.

Company had raised fresh capital of Rs 1,030 crores during Sept-Nov’17 and also in the process

of raising further capital. The Company is also likely to commence the Small Finance Bank (SFB)

shortly.

Key Credit Brief

Page | 17

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

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.

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. As on June 30, 2017 the company was operating through 4106 branches across 28

states.

Manappuram enjoys robust capitalisation and stable, diverse funding sources.

Manappuram Finance had AUM of Rs. 13,380 crores and net worth of Rs. 3,466 crores on June

30, 2017. For FY17, it reported PAT of Rs. 726 cr (v/s Rs. 337 cr YOY). For Q1FY18, the company

reported PAT of Rs. 155 crs (v/s Rs. 160 cr YOY).

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 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.

Key Credit Brief

Page | 18

Nuvoco Vistas Corporation Ltd (CRISIL AA )

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

created with the merger of Nirma’s SPV ( Nirchem - which was floated to acquire Lafarge India_

and Lafarge India.

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.

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).

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.

Key Credit Brief

Page | 19

Prestige Estates Projects Ltd (ICRA A+)

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

capitalization of Rs. 10,247 crs (as on Sep 30, 2017), 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 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)/A1+(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.

Key Credit Brief

Page | 20

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 ~67% stake in Jyothy Labs (valued at Rs. 4,926 crs on a market cap of Rs.7,353 crs

as on Sep 30, 2017). 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.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.

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.

Key Credit Brief

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

Sneha Abasan Pvt Ltd/ Sneha Enclave Pvt Ltd / Emami Enclave Maker 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.25,500 crs and the promoters hold 72.74% stake in Emami Ltd.

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 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.

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Suraksha Realty Ltd (CARE A1+(SO); Suraksha Asset Reconstruction Co. Ltd (rated A1+(SO) by CARE)

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

Pharmaceutical Inds Ltd (rated AAA / A1+ by Crisil). Established by Mr. Dilip Shanghvi in 1983,

Sun Pharma today has a market capitalization of about Rs.123,386 crs (as on Apr 12, 2018).

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 (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-/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. 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.

Key Credit Brief

Page | 23

U P Power Corporation Ltd (India Ratings AA (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.

These bonds are secured by charge on receivables of UPPCL, guarantee from GoUP and also have

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

of obligations on the bonds.

The obligations of the Company are also unconditionally and irrevocably guaranteed by the

Group.

Varun Beverages Limited (CRISIL AA- / A1+)

Varun Beverages Ltd. is the flagship company of R. K. Jaipuria group. It was set-up in 1995 to cater

to PepsiCo's bottling requirement. It is the largest third-party bottler and distributor for PepsiCo

in India and holds 47% of PepsiCo’s India business. The company sells the whole range of Pepsi

drinks with its products ranging from aerated drinks to juices to mineral water. The company

manufactures and distributes sweetened (soft drink) / non-sweetened (soda) aerated water

(~75%) and packaged drinking water / packaged juices (~25%).

It has 16 manufacturing units spread across India and has bottling operations outside India in

Nepal, Sri Lanka, Morocco, Zambia and Mozambique. The group benefits from economies of scale

derived from backward integration of operations - it has facilities to manufacture crown corks,

polyethylene terephthalate (PET) pre-forms, storage boxes, shrink wrap sheets, and plastic cap

closures.

VBL got listed on both NSE and BSE through an IPO in November 2016.

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

Key Credit Brief

Page | 25

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.