/raid1/www/Hosts/bankrupt/TCRAP_Public/130821.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, August 21, 2013, Vol. 16, No. 165
Headlines
A U S T R A L I A
DUNROSSIE: NAB Appoints Receivers to Three Major Cattle Stations
ISPONE: Placed in Voluntary Administration
ISPONE: Kogan Customers Adrift After Supplier Goes Into Admin.
RM WILLIAMS: La Belle and Welltree Listed After Receivership
I N D I A
AHUJA IMPEX: CARE Assigns 'BB' Rating to INR5cr LT Bank Loans
CHIRAYU CHARITABLE: CARE Assigns 'BB-' Rating to INR51.72cr Loans
COMMCORP INT'L: CARE Rates INR15cr Long-Term Bank Loans at 'BB-'
CREATIVE FABRICS: CARE Rates INR5.77cr Long-Term Loans at 'B'
GOPINATH CHEM-TECH: CARE Rates INR2.04cr LT Bank Loans at 'BB-'
GOVARDHAN INDUSTRIES: CARE Rates INR77.26cr LT Bank Loans at 'B+'
MOBILESTORE SERVICES: CARE Rates INR131.14cr LT Loans at 'B+'
NAINI SEED: CARE Rates INR8.50cr Long-Term Bank Loans at 'B+'
NASIM AHSAN: CARE Rates INR9cr Long-Term Bank Loans at 'BB'
RIGA SUGAR: CARE Assigns 'B' Ratings to INR132.6cr Bank Loans
SARASWATI TRADING: CARE Rates INR5.25cr LT Bank Loans at 'BB-'
SHRI SIDHDATA: CARE Rates INR121.05cr LT Bank Loans at 'BB-'
SURANA CONSTRUCTION: CARE Rates INR10cr LT Bank Loans at 'B+'
UNITECH BRIGHT: CARE Assigns 'BB' Rating to INR7cr LT Bank Loans
WESTERN TRANSFORMER: CARE Rates INR2cr LT Bank Loans at 'BB'
* INDIA: A Third of Top Firms Face Severe Debt Crisis
N E W Z E A L A N D
KERERU INVESTMENTS: Ordered to Pay 40K For Lost Wages
MEDIAWORKS: Debt Higher Than Thought
P H I L I P P I N E S
ZEST AIR: Suspension Lifted, Flights to Resume ASAP
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
=================
DUNROSSIE: NAB Appoints Receivers to Three Major Cattle Stations
----------------------------------------------------------------
Matthew Cranston at North Queensland Register reports that
receivers have been appointed to three major cattle stations owned
by grazing company Dunrossie in central west Queensland after
mortgage payments were not met.
According to the report, National Australia Bank appointed Ferrier
Hodgson's Will Colwell -- will.colwell@fh.com.au -- and Tim
Michael -- tim.michael@fh.com.au -- as receivers over the
business, which includes about 45,000 hectares of country south of
Hughenden, as well as cattle. The land alone would be worth about
AUD10 million.
The Register notes that Australia's big banks are reviewing their
capital requirements and have been tipping cattle stations into
receivership across New South Wales, Queensland and the Northern
Territory, with the expectation of selling them to operators who
have better equity levels and can make the farms pay off.
Dunrossie, owned by John McClymont, includes the 8,430-hectare
station Inverness, the 21,866-hectare Stenhouse and the 14,966-
hectare Dunrossie, according to the report. Dunrossie borders
Burslem Station, formerly owned by a separate grazing family and
seized by receivers recently on behalf of ANZ Banking Group, the
report relays.
The move on the properties comes as new buyers enter the market,
providing a more compelling proposition for banks to act on bad
loans, the report adds.
ISPONE: Placed in Voluntary Administration
------------------------------------------
The director of wholesale mobile phone and internet service
provider ispONE Pty Ltd placed the company in voluntary
administration on Aug. 19, 2013. Ferrier Hodgson partners Stewart
McCallum -- stewart.mccallum@fh.com.au -- and
John Lindholm -- john.lindholm@fh.com.au -- were appointed
administrators.
Melbourne-based ispONE provides telecommunications services to
wholesale and retail phone and internet providers throughout
Australia. Its key service lines are wireless, pre-paid mobile,
fixed-line phone and internet services for business and
residential customers. The majority of these services are
rebranded through about 100 retailers and internet service
providers (ISPs).
Founded in 2002, ispONE also provides prepaid mobile services for
250,000 mobile users through Aldi's Medion brand and Kogan's Kogan
Mobile brand. Telstra and Aldi came to agreement over the weekend
to ensure ongoing supply of mobile services to 130,000 Aldi-Medion
customers. The appointment of administrators will not affect these
customers.
However, about 120,000 Kogan Mobile customers will be affected by
the appointment of the administrators, who are working with
Telstra in relation to a transition plan to ensure minimal
disruption to their phone services. Kogan mobile customers will
shortly receive communication from Telstra in that regard. The
50,000 internet users whose services are provided via ispONE will
not be affected by the administration. Those services will
continue while the administrators assess the financial viability
of the company and the options available.
Administrator, Mr Stewart McCallum, said prior to his appointment
an agreement had been entered into for the sale of the fixed-line
telephony services, the fixed internet services and the provision
of post-paid mobile access.
"We are currently reviewing the terms of the sale agreement with
an eye to finalising it and bringing it to completion," he said.
"Our intention is to minimise the inconvenience to ispONE
customers wherever we can."
A first meeting of creditors will be held on Aug. 29, 2013.
ISPONE: Kogan Customers Adrift After Supplier Goes Into Admin.
--------------------------------------------------------------
Lucy Battersby and Ben Butler at The Sydney Morning Herald report
that about 120,000 Kogan Mobile customers have been left in the
lurch after the wholesaler supplying Kogan with access to
Telstra's 3G network went into administration.
The wholesaler, Melbourne-based ispONE, was also supplying Aldi
Mobile but Aldi was able to secure a last-minute deal with
Telstra, according to The Sydney Morning Herald.
The report relates that while the deal ensures 250,000 pre-paid
customers signed to Aldi's Medion brand were not cut off, no such
deal has been struck with Kogan.
ispONE director Zac Swindells called in administrators after a
bruising legal battle with Telstra in the Federal Court in
Melbourne, The Sydney Morning Herald relates. ispONE was seeking
legal orders to stop Telstra cutting off services, and agreed to
an emergency AUD300,000 payment to stop Telstra terminating
supply, the report says.
Administrator Stewart McCallum of Ferrier Hodgson said he was
working on a "transition plan" with Telstra and Kogan customers
would soon be contacted by the telco, the report discloses.
The report notes that Kogan released a statement advising its
customers of the development, saying "not everybody in the
industry was pleased with what we were doing". The report relays
that the company reassured customers with leftover credit that
they would be refunded.
Mr. McCallum said ispONE's 50,000 internet customers would not be
immediately affected by the collapse, with service to continue
while he considered the financial viability of the company, the
report notes.
Mr Swindells and ispONE co-founder Chris Monching were valued at a
combined AUD35 million on the BRW Young Rich list last September,
up from AUD28 million the previous year, says the report.
Company documents show Mr. Monching resigned as a director of
ispONE last October, The report adds.
RM WILLIAMS: La Belle and Welltree Listed After Receivership
------------------------------------------------------------
Alistair Walsh at Property Observer reports that La Belle and
Welltree stations in the Northern Territory have been listed for
sale after owner RM Williams Agricultural Holdings was placed into
receivership in late July.
The stations, near Litchfield National Park, are being sold by
receivers PPB Advisory through real estate agency Colliers,
according to Property Observer.
The report relates that PPB Advisory spokesman Greg Quinn said the
company paid the price for diversifying its business too quickly.
"It's expanded too quickly and lost its way . . . . When you do
that, trying to maintain that functionality and priorities of
where your investors want to go becomes extremely difficult. . . .
This puts a spotlight on corporate agribusiness, how that might
work in the future. . . . In contrast, it also highlights how well
the family-run business model is working: family farmers who are
very passionate about what they do, know the business and have the
skin in the game," the report quoted Mr. Quin as saying.
The hasty listing is being sold through an expressions of interest
campaign ending August 23, the report notes.
According to PPB Advisory, the report says, the stations are in
good condition having being understocked for some time.
Its Queensland station Mirage Plains was also placed into
receivership and was being marketed by Landmark Harcourts Sydney,
the report discloses.
Its Inglewood Farms organic chicken business was also placed into
receivership in early July, the report adds.
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I N D I A
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AHUJA IMPEX: CARE Assigns 'BB' Rating to INR5cr LT Bank Loans
-------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Ahuja Impex Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5 CARE BB Assigned
Short-term Bank Facilities 10 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Ahuja Impex Private
Limited are constrained by its financial risk profile marked by
weak debt coverage indicators, low profit margins due to trading
nature of operations and moderately leveraged capital structure.
The ratings are further constrained by exposure of AIPL to
currency fluctuation risk.
The above constraints outweigh the benefits derived from the long
track record and experienced promoters along with long standing
relationship with its key customers and suppliers.
Ability of the company to increase its scale of operations and
profitability are the key rating sensitivities.
Ahuja Impex Private Limited is incorporated in the year 1996 and
is a closely-held company promoted by the Ahuja family. AIPL is
engaged in the trading of varied range of petroleum products
including lubricating oil, base oil, Solvent Neutral (SN) 500, SN
350 SAE 30 (SAE: Society of Automotive Engineers) and other
industrial oils along with lubricants such as grease and residue
wax used in the auto segment. The company has two warehousing
facilities located in Delhi with a total capacity of 210 metric
tonnes of traded goods.
During the FY12 (FY refers to period between April 1 to
March 31), the company reported a total operating income of
INR28.92 crore over a PAT of INR08 crore as compared to the total
operating income of INR23.22 crore over a PAT of INR0.08 crore.
CHIRAYU CHARITABLE: CARE Assigns 'BB-' Rating to INR51.72cr Loans
-----------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Chirayu Charitable Foundation.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 51.72 CARE BB- Assigned
Long-term/Short-term Bank 9.50 CARE BB-/CARE A4
Facilities Assigned
Rating Rationale
The ratings of the bank facilities of Chirayu Charitable
Foundation are constrained on account of the relatively nascent
stage of operations of its medical college, lumpy cash flow and
susceptibility to regulatory risk inherent to the educational
institutes. The ratings are further constrained due to its low
capital base, high leverage, necessity to incur regular capex
towards the development and modernization of medical college and
challenges pertaining to attracting quality doctors and medical
professionals amidst high competition.
The ratings, however, take into account CCF's experienced and
resourceful trustees, diversified source of income from both the
hospital and medical institute, established presence of its
hospital in Bhopal and healthy growth prospects for the higher
education industry.
CCF's ability to increase its scale of operations through
improvement in enrollment ratio across all education courses and
improvement in its capital structure are the key rating
sensitivities.
Established in May 2001, CCF based out of Bhopal, is a society
registered under Madhya Pradesh Society Registration Act, 1973.
CCF is promoted by Dr. Ajay Goenka, Chairman and Secretary, and
his family members with an objective to set up and run a hospital
along with a medical & nursing college. Dr. Ajay Goenka is an
eminent medical practitioner of Bhopal, who has been operating in
the city for the last one and a half decade.
CCF has built infrastructure for a 750 bed hospital during FY11
(refers to the period April 1 to March 31), out of which 300 beds
are operational as on March 31, 2013. CCF also manages an
education institute offering graduation course in the field of
medicine like MBBS (Bachelor of Medicine and Bachelor of Surgery)
degree courses and critical care certification courses. The
medical college became operational in FY12 with an enrollment
capacity of 150 students. Besides, CCF has commenced a nursing
college in FY13, offering nursing courses and various paramedical
certification/diploma courses with an enrolment capacity of 100
students each. All the courses run by CCF are approved by the
Medical Council of India (MCI).
As per the audited results for FY13, CCF reported a total
operating income of INR46.98 crore (FY12: INR19.85 crore) and a
surplus of INR8.02 crore (FY12: net deficit of INR2.44 crore). As
per the provisional results till June 17, 2013, CCF has reported a
total operating income of INR15.80 crore.
COMMCORP INT'L: CARE Rates INR15cr Long-Term Bank Loans at 'BB-'
----------------------------------------------------------------
CARE assigns 'CARE BB-' & 'CARE A4' ratings to the bank facilities
of Commcorp International LLP.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 15 CARE BB- Assigned
Short-term Bank Facilities 35 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of CommCorp
International LLP are constrained by weak financial risk profile
characterized by high overall gearing ratio, thin profitability
margins and low net worth base. The ratings further take into
account the short track record of operations of the firm, its
constitution being a limited liability partnership and being
operating in a highly fragmented industry with low entry barriers.
However, the ratings derive comfort from experienced and
resourceful promoters with the existing relationships with
customers and suppliers and a moderately diversified product
portfolio of agro products. Going forward, the firm's ability to
scale up its operations while sustaining profitability
margins and managing working capital requirements efficiently
shall be the key rating sensitivities.
CommCorp International is a limited liability partnership firm
established in November 2011, and started its commercial
operations in April 2012. Mr. Jai Prakash Singhal, Mr. Sanjay
Singhal, Mr. Sanjeev Garg and Mr. Parag Gupta are partners in the
firm. The firm is engaged in trading of a range of agro
commodities like rice, wheat, maize, barley, lentils, yellow peas,
oil seeds, edible oils and sugar in both domestic and overseas
markets. The firm procures wheat, rice, maize and sugar
from other traders / brokers from domestic market and exports
them. Other agro commodities are traded domestically. Export sales
comprised 63% of net sales in FY13. Domestic and export sales
are made through brokers, who act as commission agents.
For FY13 (refers to period April 1 to March 31), CCI reported
total operating income of INR231.88 cr with PAT of INR0.75 cr. For
Q1FY14 (UA), CCI reported total operating income of INR77 cr.
CREATIVE FABRICS: CARE Rates INR5.77cr Long-Term Loans at 'B'
-------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Creative
Fabrics.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5.77 CARE B Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Creative Fabrics is
primarily constrained due to the project implementation risk
pertaining to the on-going debt funded greenfield project for
establishing a unit for manufacturing synthetic grey fabric and
stabilization risk associated with it.
The rating is further constrained on account of Creative's
presence in a highly fragmented and competitive man-made fiber
industry and susceptibility of profit margins to volatility in the
raw material prices.
The rating, however, favorably takes into account the vast
experience of the partners and benefits in the form of various
incentives offered by Government to the textile industry.
Timely completion of the on-going project within the envisaged
time and cost parameters and timely stabilization of operations
while achieving the envisaged levels of capacity utilization would
be the key rating sensitivities.
Creative was established as a partnership firm in January 2013 by
Suresh Nagda and Dily Nagda. Creative is currently implementing a
green field project of setting up a unit, wherein it would install
40 water jet looms with an installed capacity of 60 Lakh Meter Per
Annum (LMPA) for the manufacturing of synthetic grey fabrics that
find its application in a number of textile
products like shirting & suiting, bed sheets, knitted fabrics,
sarees etc at the Mahuvej region in the Surat district of Gujarat.
GOPINATH CHEM-TECH: CARE Rates INR2.04cr LT Bank Loans at 'BB-'
---------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' to the bank facilities of
Gopinath Chem-Tech Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 2.04 CARE BB- Assigned
Long-term /Short-term Bank 15.50 CARE BB-/CARE A4
Facilities Assigned
Short-term Bank Facilities 9.36 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Gopinath Chem-Tech
Limited are primarily constrained on account of its fluctuating
profitability, weak debt coverage indicators coupled with
stressed liquidity position. The ratings are further constrained
by the susceptibility of operating margins to fluctuation in the
prices of raw material and foreign exchange rates coupled with the
presence in a highly fragmented and competitive industry.
The ratings, however, derive strength from the vast experience of
the promoters in the dyes industry, presence of GCTL in the
chemical manufacturing cluster resulting in location advantage,
reputed clientele and moderate capital structure.
The ability of GCTL to improve the profit margin and liquidity
position while managing the raw material price fluctuation risk
will be the key rating sensitivities. Furthermore, GCTL has
extended a corporate guarantee for the bank facilities of a group
concern, namely, Gautam Industrial Corporation (GIC). Hence, the
extent of support given to GIC would be crucial going forward.
GCTL, the flagship company of the Gopinath group of industries,
was incorporated in 1989 as a private limited company. Later on in
1992, the company was acquired by Mr Bhupen Shah and subsequently
in 1995 it was converted into a closely held public limited
company.
GCTL is primarily engaged in the manufacturing and export of
organic dyes such as acid dyes, direct dyes and reactive dyes.
GCTL operates from its manufacturing facility located in Kadi and
Chattral in Gujarat with an installed capacity of 3,000 MTPA as on
March 31, 2013. GCTL's end user clients are manufacturers and
traders belonging to the textile and leather industries.
The Gopinath Group of Industries also runs other entities such as
Gautam Industrial Corporation, Laakoonaa Reactions and Larson
Colour Chem. These companies are also in the business of
manufacturing of organic dyes.
As per the provisional audited results for FY13 (refers to the
period April 1 to March 31), GCTL reported a total operating
income (TOI) of INR72.86 crore (FY12: INR53 crore) and Profit
after Tax (PAT) of INR0.55 crore (FY12: INR0.76 crore).
GOVARDHAN INDUSTRIES: CARE Rates INR77.26cr LT Bank Loans at 'B+'
-----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Govardhan
Industries Private Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 77.26 CARE B+ Assigned
Rating Rationale
The rating of Govardhan Industries Pvt Ltd is constrained by delay
in the commissioning of the project for setting-up of
manufacturing facilities of Galvanized Iron (GI) pipes and Hot
Rolled (HR) strips and the residual risks associated with project
under implementation. The rating also factors in the company's
exposure to fluctuation in raw material prices. However, the
rating derives strength from the experience of the company's
promoters in the steel industry and the higher degree of progress
achieved on the project with the commissioning of the Electric
Resistant Welded (ERW) pipes facility.
Going forward, GIPL's ability to complete the ongoing project
within the revised cost and time estimates and achieve the
envisaged revenue and profitability shall remain the key rating
sensitivities.
Govardhan Industries Pvt. Ltd was incorporated on March 2, 2010
for the purpose of manufacturing of Hot Rolled (HR) strips,
Electric Resistant Welded (ERW) pipes and Galvanized
Iron (GI) pipes. The company is currently in the process of
setting up its manufacturing facility at Ghaziabad, Uttar Pradesh
with an installed capacity of 45,000 Metric Tonnes Per Annum
(MTPA) for HR strips, 90,000 MTPA for ERW pipes and 18,000 MTPA
for GI pipes. The total cost of the project has been estimated at
INR73.51 crore funded in a debt-equity mix of 1.45:1.The work on
the project was commenced by the company in June 2012 and the same
was scheduled to be commissioned by April 2013. A part of the
facility for manufacturing of ERW pipes got commissioned in April
2013 while the balance facilities are yet to be commissioned.
Further, the current promoters, the Gupta family, have also
promoted other entities viz Shri Sidhdata Ispat Pvt Ltd (SSIPL,
rated CARE BB-/CARE A4), Shri Sidhdata Steel Tubes (SSST, rated
CARE B+/CARE A4) and Shri Sudershan Tubes (SST, rated CARE B+).
MOBILESTORE SERVICES: CARE Rates INR131.14cr LT Loans at 'B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of the
Mobilestore Services Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 131.14 CARE B+ Assigned
Rating Rationale
The rating reflects the stretched liquidity position of the
company primarily due to significant dependence of its revenue
from a group company, The MobileStore Limited, which is making
losses. The rating is also constraint by the thin profit margin
due to the trading nature of operations and loss incurred in the
past.
The rating derives strength from the established promoter group,
association with the leading mobile handset brands and low
inventory risk.
The Mobilestore Services Limited, a part of the Essar Group, is
engaged in the business of distribution of telecom, consumer
electronics and related products including mobile handsets,
accessories, domestic appliances and other consumer durable
products. The company is a stepdown subsidiary of Essar Global
Limited (the ultimate holding company). The Essar Group is
engaged in diversified activities like infrastructure, steel, oil
and gas, power, telecom and technology, shipping and logistics and
construction.
As per the demerger scheme approved by the High Court ordered
dated July 16, 2010, the wholesale trading operation (cash and
carry business) of The MobileStore Limited were transferred from
TMSL to TMSSL. Subsequently, all the existing bank facilities
enjoyed by TMSL were transferred from TMSL to TMSSL. Since January
2010, TMSSL is supplying mobile handsets and related products to
TMSL and other mobile retailing companies. Post the demerger,
while TMSL continued its retail business, TMSSL became one of the
major suppliers of handsets and accessories for TMSL.
As per the provisional financials, TMSSL has posted a total income
of INR1,406.81 crore and a net loss of INR3.48 crore during FY13
(refers to the period April 1 to March 31) as compared with the
total income of INR1,214.65 crore and PAT of INR1.12 crore during
FY12.
NAINI SEED: CARE Rates INR8.50cr Long-Term Bank Loans at 'B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' Rating to the bank facilities of Naini Seed
Products.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 8.50 CARE B+ Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Naini Seed Products
is primarily constrained by the small scale of operations with a
low net-worth base, weak financial risk profile characterized by
fluctuating total operating income, low profitability margins,
high overall gearing and weak debt service coverage indicators.
The rating is further constrained by the constitution of the
entity as a partnership firm, presence in a highly fragmented
industry and seasonality associated with the agro industry.
The rating, however, draws comfort from the experience of the
partners, established customer base and presence in the agro-
cluster at Kashipur, Uttarakhand Going forward, the ability of the
firm to increase its scale of operations while improving its
profitability margins and capital structure shall be the key
rating sensitivities
Naini Seed Products, a partnership firm, was constituted in
September 1996 by Mr. Anil Agarwal. NSP purchases the breeder
seeds (initial level or raw seeds) of wheat and paddy from the
state authorities or Agriculture Universities. These seeds are
sold to farmers for upgradation to foundation seeds. The
foundation seeds are then repurchased back from the farmers for
further germination and for producing final seeds as per the
specifications of State Certification Agency (for agriculture
seed). NSP has an installed capacity of 8 Metric Ton (MT) per hour
of processing and grading capacity as on March 31, 2012.
NASIM AHSAN: CARE Rates INR9cr Long-Term Bank Loans at 'BB'
-----------------------------------------------------------
CARE assigns 'CARE BB' rating to the long-term bank facilities of
Nasim Ahsan Construction Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 9 CARE BB Assigned
Rating Rationale
The rating assigned to the bank facilities of Nasim Ahsan
Construction Pvt. Ltd. are constrained by its small scale of
operation, risk of delay in project execution, susceptibility to
fluctuation in input prices, working-capital intensive nature of
operations and sluggish growth amidst intense competition in the
construction industry. The aforesaid constraints are partially
offset by the experienced promoters with long track record,
primary client being IOCL and moderate order book position.
The ability of NACPL to get regular receipt of contracts, steady
flow of orders & timely execution of the same and ability to
manage working capital effectively are the key rating
sensitivities.
Nasim Ahsan Construction Pvt. Ltd. was initially promoted as a
partnership firm in April 1996 in the name of Nasim Ahsan & Co. to
execute civil and mechanical engineering construction projects in
the state of Bihar. In February 2010, NAC was converted into a
private limited company and rechristened as NACPL. The company is
engaged in providing services primarily to oil marketing and
refining companies for installation of pipeline and other
structural fabrication works. As of now, the single-largest
customer for the company is Indian Oil Corporation Ltd.
Nasim Ahsan, Managing Director, looks after the day-to-day
operations of the company with adequate support from other two
directors and a team of experienced professionals.
During FY12 (refers to the period April 1 to March 31), the
company reported PBILDT of INR0.6 crore (INR0.9 crore in FY11) and
PAT of INR0.4 crore (INR0.5 crore in FY11) on a total income of
INR12.0 crore (INR16.5 crore in FY11). Furthermore, the company
has achieved an operating income of about INR12.0 crore in FY13
(provisional).
RIGA SUGAR: CARE Assigns 'B' Ratings to INR132.6cr Bank Loans
-------------------------------------------------------------
CARE assigns 'CARE B' & 'CARE A4' rating to the bank facilities of
Riga Sugar Company Ltd.
Amount
Facilities (INR crore) Ratings
----------- ---------- -------
Long-term bank facilities 59.10 'CARE B' Assigned
(Term Loan)
Long-term bank facilities 73.50 'CARE B' Assigned
(Fund based)
Short term facilities 1.76 'CARE A4' Assigned
(Non Fund based)
Rationale
The rating is constrained by liquidity issues in the past on
account of lower cash accruals leading to restructuring of loans,
below average financial risk profile marked by high gearing ratios
& erratic profitability margins, working capital intensive nature
of the business, susceptibility of sugar industry to the vagaries
of nature, cyclicality associated with the sugar industry and the
regulated outlook of the same. The ratings however takes comfort
from the experience of the promoters, long track record of the
company, forward integration initiatives taken by the company and
partial decontrol of the sugar industry supports the ratings.
Ability of the company to improve its financial risk profile would
be critical for the performance of the company in future.
Riga Sugar Company Limited, incorporated in September, 1980, the
flagship company of DHANUKA GROUP, currently has Sugar Plant
(5,500 TCD), Distillery (50 KLPD), Ethanol Plant (45 KLPD), Power
plant (8 MW) & DAP/ Organic Fertilizer plant at Riga, North Bihar.
RSCL is currently managed by Shri O P Dhanuka (Chairman cum MD)
who has 42 years of experience in the Sugar Industry and has also
been the President of Indian Sugar Mills Association.
RSCL earned PBILDT and Net loss of INR 19.6 crore & INR3.2 crore
respectively on a total income of INR198.4 crore in FY13 against
PBILDT and Net loss of INR 16.5 crore and INR4.7 crore
respectively on total income of INR 149.4 crore in FY12.
SARASWATI TRADING: CARE Rates INR5.25cr LT Bank Loans at 'BB-'
--------------------------------------------------------------
CARE assigns 'CARE BB-' ratings to the bank facilities of
Saraswati Trading Co.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5.25 CARE BB- Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of the withdrawal of capital
or the unsecured loans brought in by the partners, in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Saraswati Trading
Co. are primarily constrained by small scale of operations coupled
with declining profitability margins, susceptibility of its
margins to fluctuation in raw material prices and highly
fragmented and competitive nature of the industry operations
dependent on vagaries of monsoon. The ratings are further
constrained due to the partnership nature of its constitution.
The rating, however, draws comfort from its experienced promoters,
moderate capital structure and coverage indicators and favorable
manufacturing location.
Going forward, the ability of the firm to increase its scale of
operation while improving its profitability margin and effective
management of working capital shall be the key rating
sensitivities.
Karnal-based Saraswati Trading Co. was initially established as a
proprietorship concern by Mr. Rajesh Khanna in April, 1992 and
started its commercial production in September 1992. The
constitution was further changed to partnership in September 2010
and other members of Khanna family joined as the partners in the
firm. Currently, STC has seven partners. The firm is engaged in
trading and processing of rice with an installed capacity of
20,000 metric ton per annum (MTPA) as on March 31, 2013.
SHRI SIDHDATA: CARE Rates INR121.05cr LT Bank Loans at 'BB-'
------------------------------------------------------------
CARE assigns 'CARE BB-/CARE A4' ratings to the bank facilities of
Shri Sidhdata Ispat Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 121.05 CARE BB- Assigned
Short-term Bank Facilities 10.00 CARE A4 Assigned
Rating Rationale
The ratings of the bank facilities of Shri Sidhdata Ispat Pvt Ltd
are constrained by the company's weak financial risk profile as
exhibited by the leveraged capital structure, low debt coverage
indicators and its working capital intensive nature of operations.
The ratings also factor in SSIPL's exposure to the raw material
price volatilities and cyclicality inherent in the steel industry.
However, the ratings derive strength from the experience of
SSIPL's promoters in the steel industry and healthy growth in the
company's revenues and profitability over the years.
Going forward, SSIPL's ability to profitably scale up the
operations while effectively managing its working capital
requirements and improve the capital structure shall remain the
key rating sensitivities.
Shri Sidhdata Ispat Pvt Ltd, originally incorporated in October
2002, commenced its commercial operations in August 2005. The
company is engaged in the manufacturing of Cold Rolled (CR) steel
sheet, coils etc, which primary finds application in industries
like automobile, consumer durables etc. The manufacturing facility
of SSIPL is situated at Ghaziabad, Uttar Pradesh with an installed
capacity of 96,000 Metric Tonnes Per Annum (MTPA) as on March 31,
2013.
SURANA CONSTRUCTION: CARE Rates INR10cr LT Bank Loans at 'B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Surana
Construction (Chembur).
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 10 CARE B+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of the
capital or unsecured loans brought in by the partners, in addition
to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Surana Construction
(Chembur) is constrained by project execution risk as only 7% of
the construction cost is incurred till May 14, 2013, funding risk
towards the project and marketing risk as considerable area
remains to be sold. The rating is further constrained by the
cyclicality associated with the real estate industry and SC's
constitution as a partnership firm.
The aforesaid constrains far outweigh the strengths derived from
the promoters' experience in the real estate industry and
favorable location of the project.
SC's ability to timely sell the balance inventory along with
timely receipt of customer advances for the flats already sold
along with timely execution of the balance project are the key
rating sensitivities.
Surana Construction (Chembur), a partnership firm established in
2005, with Pramod Naik (7% share holding) and Surana
Infrastructure Private Limited (93% share holding; promoted by
Surendra Surana) being the partners. Mr Surendra Surana is the
founder of the Surana Group which has been involved in real estate
since 1995 in development of residential and commercial projects
in Mumbai.
SC is currently developing a residential cum commercial project at
Chembur, 'Tulsi Chambers'. The project is a slum redevelopment
(SRA) project wherein two buildings shall be constructed, of which
one shall be residential (and will be entirely allotted to the old
members as a part of rehabilitation) and commercial building will
be available for sale. The total cost of the project undertaken by
the company is expected to be INR58.88 crore, which is projected
to be funded in the ratio of 0.37: 0.17: 0.46 (promoter
contribution: debt: customer advances). Moreover, as on May 14,
2013, out of the total saleable area of 1,65,942 sq ft, 30.13% has
been booked.
UNITECH BRIGHT: CARE Assigns 'BB' Rating to INR7cr LT Bank Loans
----------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Unitech
Bright Steel Industries.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 7 CARE BB Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Unitech Bright Steel
Industries is constrained by its relatively small scale of
operations, its exposure to the cyclicality associated with the
end-user industry and the susceptibility of profitability to the
volatile raw material prices. The rating is further constrained by
the working capital intensive nature of operations owing to
relatively elongated operating cycle. The rating, however, derives
strength from the vast experience of the partners in the steel
industry, long operational track record of the United Steel group
of more than three decades, and its established long-standing
relationship with a number of reputed suppliers and clients. The
rating also factors in the modest financial risk profile of the
firm characterized by growth in revenue and profits, moderate
gearing as well as debt coverage indicators.
Going forward, the ability of the firm to prudently manage its
working-capital requirements amidst growing its scale of
operations, improve and sustain its profitability amidst intense
competition will be the key rating sensitivities. Additionally,
any major capital expenditure in the future along with its funding
mix will also be a key rating sensitivity.
UBSI, established in 2006, is a Chennai-based family concern
engaged in the manufacturing of bright steel bars of various
specifications. These intermediate products are used as raw
materials mainly in automotive components, fasteners, decorative
grills, cold forging, railway parts, textile machinery and other
engineering & machinery manufacturing industries. UBSI belongs to
the 'United Steel' group founded by Mr SN Agarwal in 1975. The
group has been engaged in the trading of alloy steels of various
grades and shapes and manufacturing of bright steel bars through
the various group entities. UBSI has an installed capacity of
12,000 tons pa for manufacturing bright steel bars. The firm
procures black steel bars from reputed suppliers and processes the
same in its plant and sells the bright steel bars to the
industrial consumers.
WESTERN TRANSFORMER: CARE Rates INR2cr LT Bank Loans at 'BB'
------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' rating to the bank facilities
of Western Transformer & Equipments Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 2 CARE BB Assigned
Short-term Bank Facilities 2 CARE A4 Assigned
Long-term/Short-term Bank 5 CARE BB/CARE A4
Facilities Assigned
Rating Rationale
The ratings assigned to the bank facilities of Western
Transformers & Equipments Private Limited are primarily
constrained by its small scale of operations with the low net
worth base and low profitability margins coupled with elongated
collection period and customer concentration risk. The ratings are
further constrained by exposed to volatility in raw material
prices and presence in highly competitive and fragmented
transformer industry.
The ratings, however, draw comfort from the experienced promoters
with established track record of operations and moderate capital
structure and debt service coverage indicators.
Going forward, increase in the scale of operations with
improvement in the profitability margins and effective working
capital utilization would be the key rating sensitivities.
Western Transformer & Equipment Private Limited was incorporated
in 1972 by Sawroop Jain. It is engaged in manufacturing of power &
distribution transformers and maintenance & repairing of
transformers. Its manufacturing facility is located in Bharatpur
(Rajasthan) with installed capacity of 2,700 transformers per year
ranging from 16 KVA to 8,000 KVA. The main raw materials for
manufacturing transformer are aluminums, copper, cold rolled
grain oriented (CRGO) and transformer oil. WTE is part of group
associate namely MEI Power Private Limited is in the business of
manufacturing of transformers.
For FY12 (refers to the period April 1 to March 31), WTE achieved
total operating income of INR24.89 crore with PBILDT INR1.22
crore. In FY13 (based on provisional numbers) WTE has achieved
total operating income of INR24.06 crore with PBILDT of INR1.28
crore.
* INDIA: A Third of Top Firms Face Severe Debt Crisis
-----------------------------------------------------
Business Standard reports that economic slowdown and the
accompanying demand destruction have taken a heavy toll on India's
top companies. The report says the worst-hit are those that had
launched aggressive growth plans, largely funded through debt,
believing the demand growth in the years to come would be robust.
According to the report, many of these firms now find themselves
in a spiral of declining profitability, shrinking market
capitalisation and rising liabilities. This raises a question mark
over their financial viability. On this parameter, nearly a third
of India's top companies are either financially insolvent or on
the verge of it, Business Standard relays. They can't use equity
markets to raise enough capital to fund these projects or lighten
their debt burden. Of the 406 firms in the BSE-500 list (excluding
banking and financial ones) that have declared their results so
far, the market capitalisation of 143 is either below their debt
or just a notch above. The sample includes companies with average
market capitalisation (during July this year) of less than 1.5
times their net debt as at the end of 2012-13.
Business Standard, citing figures from Capitaline, discloses that
at the end of March this year, these companies were sitting on a
debt of INR13.2 lakh crore -- nearly twice their average market
capitalisation in July. Two years ago, however, it was the other
way around. In July 2011, their market value was 40 per cent
higher than their net debt. Over the past two years, their debt
(adjusted for cash and other liquid investments on their books)
has risen 61 per cent, while their market capitalisation has
declined 40 per cent. This has shut for these companies the equity
window for project funding or debt repayment.
The report relates that the list includes companies like Tata
Steel, Hindalco Industries, Tata Power, L&T, Jaypee Associates,
Adani Power, GMR Infra, GVK Power, JSW Steel, Reliance Infra,
IndianOil, HPCL, Shri Renuka Sugars, Bajaj Hindusthan and Suzlon.
Their market-cap-to-debt-coverage ratio will look even worse if
deferred tax liability and contingent liabilities are included.
Most of these firms also have high debt-to-equity ratio (greater
than 1.0), poor interest coverage ratio (less than 2.0) and
falling profitability, the report notes.
Business Standard says the ratio would not come as a surprise but
for the fact that these financially-stretched firms account for
two-thirds of all projects under implementation by BSE-500
companies. Last financial year, these companies together spent
INR2,59,000 crore on new projects. In all, these have commissioned
INR6.85 lakh crore worth of new projects in the past two years,
accounting for 57 per cent off all capex (by value) commissioned
by the companies in the sample. These figures are likely to be
revised upwards once all these companies declare their audited
financials for 2012-13, the report states.
According to the report, experts said the mismatch between the
project cost and underlying debt and market value suggests
investors' poor opinion about the financial viability of these
projects, given the current weak economic environment. "Investors
have turned away from capital-intensive companies and sectors, to
those that generate disproportionately higher cash flows relative
to the underlying investment," the report quotes Devang Mehta,
senior vice-president & head (equity sales), Anand Rathi Financial
Services, as saying.
====================
N E W Z E A L A N D
====================
KERERU INVESTMENTS: Ordered to Pay 40K For Lost Wages
-----------------------------------------------------
NZN reports that Kereru Investments Limited has been ordered to
pay an employee almost NZ$40,000 for wrongly firing him twice and
sporadically paying him for 72-hour working weeks.
Kereru Investments Limited, which went into liquidation last week,
has been ordered to fork over about NZ$39,000 in owed and lost
wages, compensation and penalties for failing to provide wage
records, the report says.
In a decision released August 13, NZN relates, the Employment
Relations Authority (ERA) ruled it had underpaid courier
Alan Smith according to minimum wage requirements and failed to
pay him holiday wages.
NZN notes that despite being forced to work 72-hour weeks with no
paid or unpaid breaks, Mr. Smith was paid "sporadically" and
inconsistently and told he would lose his job if he didn't deliver
all the packages in his workload.
He was often required to work from 4:30 a.m. to 6:00 p.m. and
suffered from anxiety and fatigue as a result of his employment,
the report relays.
The ERA ruled Kereru Investments had failed to provide Mr. Smith
with a healthy and safe workplace by tasking him with an
"unmanageable workload" and forcing him to work without breaks,
the report says.
The New Zealand companies register said Kereru Investments was put
into liquidation on August 8 this year, NZN reports.
Kereru Investments Limited is a Feilding-based courier company.
MEDIAWORKS: Debt Higher Than Thought
------------------------------------
Fairfax NZ News reports that the parlous state of broadcaster
Mediaworks, including debts of nearly $800 million and trading
losses since 2010, has been revealed in receivers' reports.
Mediaworks was placed in receivership on June 17 and KordaMentha's
first report shows the company's debts were higher than first
disclosed, but even subtracting the cost of financing that debt,
the broadcaster was making consistent losses, according to Fairfax
NZ News.
The report relates that total liabilities were reported to be
NZ$797 million -- up on the NZ$700 million disclosed when
KordaMentha was first appointed -- with NZ$528 million owed to
senior lenders who are likely to soon own the company.
KordaMentha receivers Michael Stiassny and Brendan Gibson signed a
sale and purchase agreement with a company set up by the
broadcasters' senior lenders, the report relates.
Settlement is expected on September 30.
Trading losses, which exclude finance costs, were NZ$5 million in
2010 and NZ$4.8 million in 2011, the report discloses.
Unsecured creditors are at the mercy of new owners as the report
said "no sum will be available to unsecured creditors" from the
proceeds of receivership, the report relays.
Preferential creditors, including staff owed NZ$4.7 million and
IRD owed NZ$4.2 million, would be paid in full, the report notes.
Receivership hasn't been all good news for the taxman, as
liability for a disputed NZ$22 million bill relating to the use of
optional convertible notes is unlikely to be carried over into new
ownership, the report adds.
=====================
P H I L I P P I N E S
=====================
ZEST AIR: Suspension Lifted, Flights to Resume ASAP
---------------------------------------------------
Camille Diola, writing for philstar.com, reported that the Civil
Aviation Authority of the Philippines (CAAP) on August 20 lifted
its suspension order on low budget carrier Zest Air.
The report says Zest Air assured its passengers that its flights
to Manila, Bacolod, Cagayan de Oro, Cebu, Davao, Kalibo, Iloilo,
Puerto Princesa, Tacloban, Tagbilaran, Kuala Lumpur, Kota
Kinabalu, Shanghai and Incheon will resume "as soon as possible."
CAAP deputy director John Andrews said the suspension order was
lifted after the airline addressed suspected safety violations and
was granted its Airline Operator's Certificate required to resume
operations, says philstar.com.
The CAAP said it has inspected three of the budget airline's three
planes, which have been cleared for flight under aviation safety
standards and will continue to inspect the rest of the fleet, the
report added.
According to philstar.com, the suspension left hundreds of
passengers stranded, and the company reportedly lost PHP70 million
a day due to its fleet's grounding.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Aug. 22-24, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***