/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/131114.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 Thursday, November 14, 2013, Vol. 16, No. 226 Headlines A U S T R A L I A NSW SUGAR: Swiss Firm Takes Over Two Sugar Mills ORIONSTONE PTY: S&P Withdraws 'B' Corp. Credit Rating * ASIC To Remove Tom Fernandez as Liquidator From Industry C H I N A CHINACAST EDUCATION: Judge Extends Asset Freeze Order CHINA ORIENTAL: Moody's Says Ba3 Ratings Unaffected by Summons CHINA OVERSEAS: S&P Ratings Reflect bb- StandAlone Credit Profile I N D I A AEON RKB: ICRA Assigns 'B+' Ratings to INR27.5cr Loans AJAB SINGH: ICRA Upgrades Ratings on INR10.5cr Loans to 'B' AKSHAT PLASTICS: CRISIL Suspends 'B+' Ratings on INR22MM Loans AMIT BROTHERS: ICRA Ups Rating on INR35cr Loans to 'BB' APEX ROLLER: CRISIL Reaffirms 'BB' Rating on INR75MM Loans BHIKHABHAI GORDHANDAS: CRISIL Suspends B+ Rating on INR12MM Loan COIMBATORE HITECH: CRISIL Reaffirms B+ Rating on INR83MM Loan DELTA INFRALOGISTICS: CARE Assigns 'BB' Rating to INR14cr Loans DELVAL FLOW: CRISIL Cuts Ratings on INR185MM Loans to 'BB+' DHARANIDARA SPINNING: CRISIL Suspends 'D' INR227.3MM Loan Ratings DIVY ROLLFORM: CARE Assigns 'BB' Rating to INR6.64cr LT Loans GSR VENTURES: CRISIL Reaffirms 'B' Rating on INR70MM Loan HINDUPUR STEEL: CARE Rates INR21cr LT Bank Loans at 'B+' HOTEL GRAND: CRISIL Suspends 'D' Ratings on INR80MM Loans JAGRAON CYCLE: CRISIL Suspends 'B+' Ratings on INR81.5MM Loans JAI MAA: CARE Assigns B+ Rating to INR8.99cr LT Bank Loans KAVISHA MOTORS: CRISIL Suspends 'B+' Ratings on INR125MM Loans KLENZAIDS CONTAMINATION: ICRA Suspends 'BB-' INR8.5cr Loan Rating LEENA POWER-TECH: CRISIL Suspends 'BB+' Rating on INR100MM Loan M-TECH INDUSTRIES: CRISIL Suspends BB- Ratings on INR61.3MM Loans MALABAR WATCHES: CRISIL Assigns 'BB-' Ratings to INR80MM Loans MANJUSHRI CONSTRUCTION: CRISIL Puts BB+ Ratings on INR71MM Loans MILLENIUM EXIM: ICRA Puts 'B' Ratings on INR6.25cr Loans NANDI VARDHANA: CARE Assigns 'BB' Rating to INR22.43cr Loans NARAYANI SILKS: CRISIL Suspends 'B' Rating on INR28MM Loan NARMADA AGRO: CRISIL Suspends 'B+' Ratings on INR65MM Loans NIMRA EDUCATIONAL: CRISIL Suspends 'D' Ratings on INR80MM Loans NM LOK: ICRA Suspends 'BB-' Rating on INR12.5cr Term Loans NUTAN ISPAT: CARE Assigns 'BB+' Rating to INR21cr LT Bank Loans PALATHUMPATTU SKY: CRISIL Assigns 'BB' Rating to INR60MM Loan PIMS MEDICAL: CRISIL Suspends 'D' Ratings on INR2.2BB Loans PIYUSH INFRATECH: CRISIL Ups Ratings on INR200MM Loan to 'BB-' PRAKASH STAINLESS: CRISIL Reaffirms 'B+' Rating on INR150MM Loans PRESTIGE EXPRESSMART: CRISIL Suspends B+ Rating on INR50MM Loan R F MOTORS: CRISIL Reaffirms 'B+' Ratings on INR231.8MM Loans RAJASTHAN IRON: ICRA Reaffirms 'B+' Rating on INR10.25cr Loans RASESHWARI METALLICS: CARE Assigns 'B+' Rating to INR6cr Loans RAVI PLANT: ICRA Assigns 'B' Ratings to INR18.5cr Loans RENEWABLE ENERGY: ICRA Cuts Rating on INR20cr Loans to 'B-' SHIVADARSHAN AGRO: CRISIL Assigns 'B+' Ratings to INR90MM Loans SHREE BALAJI: CRISIL Reaffirms 'BB-' Rating on INR90MM Loan SHREE SAMLESWARI: CARE Assigns 'BB-' Rating to INR7.49cr Loans SHRI MAHAVIR: CARE Assigns 'B-' Ratings to INR534.5cr LT Loans SRINATH SPINNERS: CRISIL Suspends BB- Ratings on INR198.1MM Loans SRIVALLI SHIPPING: CRISIL Suspends D Ratings on INR150MM Loans TRIDENT TOOLS: CRISIL Suspends 'B+' Ratings on INR137MM Loans VSP ENTERPRISES: ICRA Upgrades Rating on INR8cr Loans to 'BB' WORLDSTEL STAINLESS: CRISIL Suspends D INR498.5MM Loan Ratings I N D O N E S I A MERPATI NUSANTARA: To Convert Debt to State Firms Into Shares J A P A N ORIX-NRL TRUST 15: S&P Cuts Ratings on Trust Certs. to 'D(sf)' TOKYO ELECTRIC: Mulls Issuing Bonds Before 2020 N E W Z E A L A N D BLACKTOP CONSTRUCTION: Owes NZ34MM to Creditors, Receiver Reveals PIKE RIVER: Government Should Force Firm to Pay Compensation REYNOLDS GROUP: Moody's Affirms 'B3' Corporate Family Rating REYNOLDS GROUP: S&P Rates $650MM Sr. Unsecured Notes 'CCC+' P H I L I P P I N E S BAYAN TELECOM: PLDT Blocks Globe Telecom's Takeover of Bayantel LEHMAN BROTHERS: Shareholders' Final Meeting Set for Nov. 25 - - - - - ================= A U S T R A L I A ================= NSW SUGAR: Swiss Firm Takes Over Two Sugar Mills ------------------------------------------------ Kim Honan at ABC Rural reports that Swiss-based company Capital Dynamic has taken over two of Australia's major renewable energy assets for an undisclosed sum. ABC Rural relates that the cogeneration plants at the Broadwater and Condong Sugar Mills, in northern New South Wales, recommenced operations on November 8 processing sugar cane trash from the current harvest. They cost the NSW Sugar Milling Co-operative AUD220 million to build but have been shut down while receivers looked for a buyer, the report relays. According to the report, David Scaysbrook, managing director of Clean Energy Infrastructure at Capital said they have had their eye on the plants for a year. "We have a history of taking over broken assets . . . we've done similar things in the UK in gas, coal and methane assets. We are operational experts and we think we can add something to the resuscitation of the business," ABC Rural quotes Mr. Scaysbrook as saying. He is looking at increasing the operating season for the plants beyond the sugar crush with other sources of biomass to generate power. "We've got our fingers crossed for better weather, we don't want a repeat of the floods and we're doing what we can to support cane growers to produce a bigger crop. We also want to expand the supply of fuel into other biomass over time, such as macadamia, sawmill or woodchip residues," Mr. Scaysbrook, as cited by ABC Rural, said. In 2011 the venture was placed into receivership, with the co-op citing depressed green energy prices as one of the major reasons for its financial failure, the report recalls. The plants were a joint venture between the co-op's Sunshine Renewable Energy and the State Government owned Delta Electricity. The cooperative's chief executive officer, Chris Connors, said they're pleased with the outcome and the direction the project is heading, the report adds. ORIONSTONE PTY: S&P Withdraws 'B' Corp. Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Australia-based heavy equipment rental company Orionstone Pty Ltd. (OPL). S&P's 'B' issue rating and '3' recovery rating on the proposed US$200 million senior secured notes to be issued by OPL were also withdrawn. The ratings were withdrawn at the issuer's request. * ASIC To Remove Tom Fernandez as Liquidator From Industry ---------------------------------------------------------- Australian Securities and Investment Commission will cancel the registration of liquidator Avitus Thomas (Tom) Fernandez following a successful application to the disciplinary body, the Companies Auditors and Liquidators Disciplinary Board (CALDB). The CALDB's order to cancel Mr. Fernandez's registration follows his appointment as the administrator of Willmott Forests Ltd and its subsidiaries in September 2010. ASIC alleged a AUD200,000 payment to Mr. Fernandez by Willmott to cover his costs was not disclosed or given to the receivers and managers who were entitled to it, and not disclosed to creditors or the administrators who replaced him in October 2010. The CALDB found that Mr. Fernandez's conduct demonstrated a serious lack of judgment, insight, expertise and ability, and, therefore, that he was not a fit and proper person to remain registered as a liquidator. "Mr. Fernandez's conduct was unacceptable and inconsistent with the standards required of liquidators," ASIC Commissioner John Price said. "This decision reiterates the importance of transparency and proper disclosure by liquidators when doing their job." Mr. Fernandez, who the CALDB suspended in 2005, has the right to appeal to the Administrative Appeals Tribunal for a review of the CALDB's decision. At the time of his conduct, Mr. Fernandez was the sole director and secretary of Fernandez Partners at Glen Waverley, Victoria. The CALDB is an independent statutory body under the Corporations Act and has the power to cancel or suspend the registration of a liquidator or auditor. ========= C H I N A ========= CHINACAST EDUCATION: Judge Extends Asset Freeze Order ----------------------------------------------------- The South China Morning Post reports that a Hong Kong judge has extended an order freezing the assets of Jim Ma Jim Lok, a former chief accounting officer of ChinaCast Education. In September, the US Securities and Exchange Commission charged ChinaCast's former chief executive, Chan Tze Ngon, with stealing tens of millions of dollars from investors in its Nasdaq initial public offering and charged Jiang Xiangyuan, ChinaCast's former China president, with illegally dumping ChinaCast stock after he helped steal company assets, the SEC said on its website, SCMP relates. ChinaCast delisted from Nasdaq in June last year, the report notes. On June 19 this year, Mr. Justice Louis Tong Po-sun granted an injunction freezing the Hong Kong assets of Ma, Chan, Jiang and Antonio Sena, a former chief financial officer of ChinaCast, SCMP recalls. Mr. Ma maintains he is not involved in any fraud in ChinaCast. SCMP relates that in a Court of First Instance ruling on November 11 that continued the injunction, Mr Justice Anthony Chan Kin- keung said: "I am not convinced about Mr. Ma's explanations. Just looking at the unauthorised borrowings and the pledges, there is a strong inference that there were too many irregularities to have escaped an honest chief accounting officer. It is very difficult for such unlawful acts to have escaped Ma." Mr. Ma was the ChinaCast executive responsible for dealing with its auditor, Deloitte Touche Tohmatsu. In February, a group of US funds sued the accounting firm in a US court for investors' losses from ChinaCast. Deloitte said it would vigorously defend itself, SCMP reports citing The Wall Street Journal. According to the report, the ruling said in 2011, there was an internal conflict within ChinaCast culminating in the sacking of Chan and Jiang in March last year, while Sena resigned. Ma was fired a month later, the report relays. The new management found financial records and other documents in the Shanghai offices of ChinaCast's subsidiaries had been removed or destroyed, the ruling, as cited by SCMP, said. In March last year, Mr. Chan tried to prevent the new management from entering the Shanghai premises by changing locks, it added. Company chops and other documentation required to run ChinaCast had been removed on Chan's instructions, the ruling said. As of the end of June 2011, ChinaCast had CNY858 million (HK$1.09 billion) in cash. ChinaCast's new management found that from July 2011 to April last year, more than CNY762 million had been removed, part of which was used to repay unauthorised loans, the ruling said, SCMP reports. CHINA ORIENTAL: Moody's Says Ba3 Ratings Unaffected by Summons -------------------------------------------------------------- Moody's Investors Service says that China Oriental Group Company Limited's Ba3 ratings and negative outlook will not be immediately impacted by the issuance of a writ of summons by Mr Han Jingyuan, its major shareholder, to ArcelorMittal (Ba1 negative), which is another major shareholder. Mr Han Jingyuan is seeking an order that ArcelorMittal procures ArcelorMittal Holdings AG (previously Mittal Steel Holdings AG) to sell a sufficient number of shares of China Oriental such that China Oriental meets the 25% minimum public float requirement pursuant to Rule 8.08 of the Listing Rules. Mr Han has used the writ of summons to preserve his rights under the shareholders' agreement of 9 November 2007, which has a provision for maintenance of a minimum public float. At the same time, Mr Han has indicated that he wishes to discuss the matter further with ArcelorMittal, with the aim of finding an amicable and harmonious solution. "In the event that ING Bank NV (A2 negative) and Deutsche Bank AG (A2 stable) put their shareholdings to ArcelorMittal and there is a subsequent sell down of such incremental interest, we will not expect any material change in ArcelorMittal's support to the company," says Jiming Zou, a Moody's Assistant Vice President. Moody's rating assessment on China Oriental is based on ArcelorMittal's ownership of 29.6% in China Oriental, and its offer of advanced management practices, guidance on improving corporate governance and technical assistance. In addition, China Oriental is one of the two investments that ArcelorMittal has made in China. This investment was based on China Oriental's strength as one of the largest and one of the most profitable H-section steel manufacturer in China, owing to efficient production and good cost control. "China Oriental's operation will not be materially affected after the put options are exercised by ING and Deutsche Bank," adds Zou. The company's operation has improved since 2008 when ArcelorMittal first acquired the company. It can now be run more independently with a low level of technical support from ArcelorMittal. In addition, ArcelorMittal's board representation in China Oriental has dropped to one since July 2013. "In the scenario that either Mr Han Jingyuan or ArcelorMittal, or both of them, have to comply with the minimum public float requirement by selling down their shareholding interest of about 17.2%, the change of control clause under the current bond indenture will not be breached," says Zou. The current bond indenture requires both Mr Han Jingyuan and ArcelorMittal to maintain at least 20% of voting power in China Oriental. With the current holdings of 44.94% by Mr Han and the potential holdings of 46.99% by ArcelorMittal after the exercise of put options by ING and Deutsche Bank, even if any party sells 17.2% of its interest, their individual voting power will still be above the minimum requirement of 20%. Moody's expects the shareholding sell down will take some time to resolve, as the current share price of HKD1.32 per share -- reflective of the current steel market in China -- is much lower than the HKD6.12 that ArcelorMittal offered to purchase China Oriental during its general offer in 2008. CHINA OVERSEAS: S&P Ratings Reflect bb- StandAlone Credit Profile ----------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'BBB-' long-term corporate credit rating to Chinese property developer China Overseas Grand Oceans Group Ltd. The outlook is stable. At the same time, S&P assigned its 'cnA-' long-term Greater China regional scale rating to the company. The rating on COGO reflects the company's stand-alone credit profile (SACP) of 'bb-' and a three-notch uplift from the strong ongoing operational and financial support from China Overseas Land & Investment Ltd. (COLI). The rating also factors in COGO's early expansion into tier-3 cities, which allows the company to establish a leading market position with lower land cost in some cities. These strengths are partially offset by the COGO's aggressive growth appetite and largely untested profitability in lower-tier cities, given its short operating history. S&P assesses the company's business risk profile as "weak" and its financial risk profile as "significant." "We assess COGO to be a "strategically important" subsidiary of COLI. We believe COLI will continue to rely on COGO as an expansion platform into tier-3 cities. Given the ongoing urbanization trend in China, these cities have good growth potential, which COLI is striving to capitalize on. COLI has no presence in lower-tier cities. COLI owns 38% of COGO, and we believe COLI intends to increase its stake if the opportunity arises," S&P said. "COLI extends strong operational support to COGO," said Standard & Poor's credit analyst Bei Fu. "They share the nationwide well- established brand name "China Overseas Property." COLI also shares market research resources, product design knowledge, and transferred experienced managers to COGO." COGO has good financial flexibility. The company shares COLI's financing channels, which gives COGO average funding cost of 4%- 5%, lower than many companies with similar SACP. "We see some concentration risk in focusing on lower-tier cities," Ms. Fu said. "The depth of the market and affordability of home buyers in these cities are much weaker than in bigger cities. Demand is usually from local owner-occupier and is sensitive to economic cycles." "We expect COGO's historically high profitability will weaken, but the company will still achieve satisfactory margins. The company's strong credit ratios in 2011 and 2012 were mostly attributable to its low cost land reserves in tier-1 cities, which were bought before COLI acquired COGO in 2010 and have mostly been depleted," S&P said. "The stable outlook reflects our expectation that COGO will achieve satisfactory property sales and margins for the next 24 months in a generally stable market, partly offsetting increasing borrowings for expansion and land acquisitions. We expect COGO's leverage will increase, with debt to EBITDA rising to 3x-4x from less than 3x in the past two years; that would be commensurate with a "significant" financial risk profile. Despite its short operating history in tier-3 cities, we believe COGO can expand rapidly in the next two to three years because of operational support from its parent," according to S&P. The potential upside to the rating is limited over the next 12-24 months due to COGO's aggressive growth plan and increasing debt appetite. "We may review the rating for an upgrade if COGO can expand its operating scale, improve its diversity, maintain a satisfactory profitability, prudent financial management, and keep its balance sheet leverage with debt-to-EBITDA ratio 3x-4x. We may also raise the rating if we assess a stronger parent support from COLI," said S&P. "We may lower the rating if COGO's debt-funded growth appetite is more aggressive than we expected, such that its debt to EBITDA is above 4x on a sustainable basis. We may also lower the rating if COGO's profitability and sales execution in tier-3 cities are significantly below our expectation, although we view it as a remotely possible scenario. In addition, the rating will also be under pressure if our assessment of parental support from COLI weakens," said S&P. ========= I N D I A ========= AEON RKB: ICRA Assigns 'B+' Ratings to INR27.5cr Loans ------------------------------------------------------ ICRA has assigned '[ICRA]B+') as the long term rating outstanding for the INR27.50 crore bank facilities of Aeon RKB Motors Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 24.00 [ICRA]B+ Assigned Cash Credit 3.50 [ICRA]B+ Assigned The assigned rating takes into account the extensive experience of promoters in medical equipment supplies industry (through Aeon Medical Private Limited, rated [ICRA]BB/Stable]), and access to technological support from RKB GMBH, a German company with long experience in building ambulances for European markets. ICRA notes that ARMP has small scale of operations but with the major order from Ashok Leyland Limited (ALL), the company is expected to see significant growth in revenues over the medium term. The ratings, however, are constrained by the expected deterioration in credit profile of the group (AMPL+ARMP) on account of long term debt being raised to fund the capex plans for capacity enhancement by ARMP to service the order from ALL. The rating is also constrained by the high dependence on RKB GMBH for supplying close to 99% of the equipments and the vulnerability of company's profits to forex fluctuations as most of the medical equipments are imported by the company. Going forward, the successful ramp up for supplies to ALL and timely completion and commissioning of the plant remain the key rating sensitivities. Formed in 2010, Aeon RKB Motors Private Limited (ARMP) is an assembler of general ambulances with its assembling plant located in Pithampur, Madhya Pradesh. The company is part of the Aeon group, promoted by Mr. A.R. Tripathy along with Mr. R.N. Senapati. The main promoter, Mr. A.R. Tripathy, is an engineering graduate and has worked as a healthcare professional for nearly two decades at various levels. The major company in the Aeon group is Aeon Medical Private Limited (AMPL), rated [ICRA]BB(Stable), which was found in 2005. AMPL is a healthcare integrator and assembles high- end ambulances (Life Support Vehicles) by installing advance life support systems in basic ambulances. RKB GMBH, a German company with many decades of experience in building ambulances for the European market, is the technology partner and the main supplier to ARMP. Ashok Leyland is the biggest client of the company and has tied up with ARMP for manufacturing ambulances. Recent Results In 2012-13, ARMP reported an Operating Income of INR2.4 Crore, Profit before Depreciation, Interest and Tax (PBDIT) of INR0.1 Crore and net profit of INR0.1 Crore. AJAB SINGH: ICRA Upgrades Ratings on INR10.5cr Loans to 'B' ----------------------------------------------------------- ICRA has upgraded the long-term rating for the INR10.50 crore (enhanced from INR7.35 crore) bank facilities and proposed limits of Ajab Singh and Company, to '[ICRA]B' from '[ICRA]C+' earlier. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 4.50 [ICRA]B/Upgraded Based Limits Long Term Non 4.00 [ICRA]B/Upgraded Fund Based Limits Unallocated 2.00 [ICRA]B/Upgraded The rating upgrade takes into account the improved scale of operations which is expected to continue given the pending order- book position of around INR51 crore, which is expected to result in further improvement in scale of operations The upgrade also factors in the satisfactory track record of debt servicing since the last rating exercise. The rating continues to takes into account the experience of the promoters who have a track record of around a decade in the construction business. While the financial profile remains satisfactory as characterized by healthy operating profitability (12-15% in the past few years), satisfactory capital structure (as reflected by a gearing of 1.39x as on March 2013) and moderate debt coverage indicators (as reflected by interest coverage of 2.49x and TD/OPBDITA of 1.85x as on March 2013), however modest scale of operations in a fragmented and competitive industry limits the pricing power and benefits of economies of scale. Further, high geographical and customer concentration (firm undertakes contracts solely for DDA) limits the financial flexibility as the firm is dependent on timely receipt of payments from its single customer. In addition, the profitability remains vulnerable to fluctuation in prices of raw materials as the contracts are without raw material price escalation clause. ICRA has also taken a note of ASC's constitution as a partnership firm which is exposed to capital withdrawal risks as was witnessed in FY13, whereby the withdrawals were higher than the profits for the year leading to net decline in partner's capital. Going forward, ability of the firm to move execution of larger projects, maintain its profitability, improve its working capital cycle; diversify its customer base; and further strengthen the capital structure by limiting withdrawals from capital will remain the key rating sensitivities. Incorporated in 2006, Ajab Singh and Company is a partnership firm engaged in construction of flats, boundary wall and other such civil engineering projects in NCR region for DDA. The firm has around 40 permanent employees and 200-250 laborers which are hired on a temporary basis. Recent Results: Ajab Singh and Company reported a PBT of INR1.34 crore on an operating income of INR21.24 crore in FY2013 as against a PBT of INR0.92 crore on an operating income of INR12.52 crore in FY2012. AKSHAT PLASTICS: CRISIL Suspends 'B+' Ratings on INR22MM Loans -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Akshat Plastics Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable Suspended Letter of Credit 100 CRISIL A4 Suspended Proposed Long-Term Bank Loan Facility 2 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by APPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, APPL is yet to provide adequate information to enable CRISIL to assess APPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. APPL was set as a proprietorship firm, RD Polymer, in 1995 by Mr. Brij Mohan Gupta. It was reconstituted as a private limited company in 2003. APPL trades PVC resin, PVC paste, and plasticisers. The firm's office is in Delhi. AMIT BROTHERS: ICRA Ups Rating on INR35cr Loans to 'BB' ------------------------------------------------------- ICRA has revised the long term rating from '[ICRA]BB-' to 'ICRA]BB' for INR35 crore (enhanced from INR20 crore) fund based facilities of Amit Brothers Private Limited. The outlook for the rating is stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 35 [ICRA]BB (Stable) Upgraded from [ICRA]BB- (Stable) The rating action takes into account healthy growth in operating income of the company and equity infusion by promoters which has resulted in improvement in gearing. Further, recent capacity expansion in FY2013 and planned capex for manufacturing of Lead Oxide in FY2014 is expected to augur well for the revenues and margins of the company going forward. The rating is also supported by long experience of promoters of over 25 years in the trading business, an established dealership network and supplier base of the company. Further, with the foray into manufacturing of batteries, the profitability has improved with an increasing proportion of manufacturing sales now substituting trading sales. However ratings concerns emanate from low margins inherent in the trading business which still constitutes a substantial portion of the company's sales. The rating is also constrained by relatively high working capital (WC) intensity of operations, competitive nature of industry and commoditized product profile which constrain the margins of the company. Moreover, the company will remain susceptible to adverse movements in finished goods prices as the number of days of inventory have continued to increase in the last three years. Going forward, the company's ability to achieve revenue growth while maintaining adequate margins and a prudent capital structure will remain key rating drivers for the company. Amit Brothers Pvt. Ltd. was set up 25 years ago as a proprietor entity at Palam, New Delhi and started with business of paint, hardware and sanitary retailing in the West Delhi area. The proprietorship firm was converted into a private limited company with the name of Amit Brothers Pvt. Ltd. Initially, the company was into retailing of paints and hardware with distribution and sales of branded companies' products such as Nerolac, Asian Paints, Hindware, Somani etc. As the business expanded, the company took dealership of Crompton Greaves and started wholesale along with retail for distribution of Crompton Greaves' products. The company itself has built up a network of sub dealers and dealers running over 280 distribution points for retail sale of goods dealt by the company. The company is mainly concentrated in Delhi NCR region. ABPL has forayed into manufacturing of inverter batteries in FY 2009. Recent Results Amit Brothers Private Limited has reported an operating income of INR171.71 crore in FY 2013 registering a growth of 31% over FY 2012. The profit after tax has also increased from INR1.22 crore in FY 2012 to INR1.85 crore in FY 2012. APEX ROLLER: CRISIL Reaffirms 'BB' Rating on INR75MM Loans ---------------------------------------------------------- CRISIL's rating on the long-term bank facility of Apex Roller Flour Mills Pvt Ltd continues to reflect the extensive experience of ARFPL's promoters in the wheat products industry, and its moderate financial risk profile, marked by low gearing and healthy debt protection metrics, though its net worth is small. These rating strengths are partially offset by the company's small scale of operations in the intensely competitive wheat processing industry, resulting in limited pricing power. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 75.00 CRISIL BB/Stable (Reaffirmed) Outlook: Stable CRISIL believes that ARFPL will, over the medium term, continue to benefit from its promoters' industry experience, and maintain its moderate financial risk profile on the back of adequate cash accruals and no debt-funded capital expenditure (capex) plans. The outlook may be revised to 'Positive' if the company reports significant and sustained improvement in its scale of operations and profitability, while efficiently managing its working capital requirements. Conversely, the outlook may be revised to 'Negative' if ARFPL reports lower-than-expected revenue growth, or in case of pressure on its margins, most likely because of an increase in competition. Update: For 2012-13 (refers to financial year, April 1 to March 31), ARFPL reported an operating income of INR739.5 million, a year-on-year growth of 39.4 per cent. The growth was driven primarily by an increase in revenues from trading in wheat to INR237 million, which is not expected to recur. For the six months ended September 30, 2013, the company reported, on a provisional basis, an operating income of around INR307.7 million. ARFPL reported an operating margin of 5.1 per cent for 2012-13, largely in line with average historical trends. ARFPL has a healthy capital structure, marked by low gearing of around 0.5 times as on March 31, 2013. Its debt protection metrics too were healthy, with net cash accruals to total debt and interest coverage ratios at 0.60 times and 5.92 times, respectively, for 2012-13. The company did not have any significant debt-funded capex in 2012-13, nor does it have any capex plans over the medium term; consequently, the gearing is expected to remain healthy over this period. However, ARFPL had a small net worth of around INR72 million as on March 31, 2013. The company's liquidity is adequate, marked by moderately utilised bank limits at an average 58.3 per cent during the 12 months through September 2013, and expected cash accruals of more than INR21 million, as against principal repayment obligations of INR1.1 million, in 2013-14. For 2012-13, ARFPL reported a profit after tax (PAT) of INR18.4 million on net sales of INR738.4 million, against a PAT of INR13.9 million on net sales of INR529.8 million for 2011-12. ARFPL was established in 1975 by Mr. Mahaveer Jain in Coimbatore (Tamil Nadu). Currently, the company's operations are managed by Mr. Mahaveer Jain's sons, Mr. Nishant Jain, Mr. Prashant Jain, and Mr. Vivek Jain. ARFPL processes wheat products, including atta, bran, and sooji. It sells its products under the brand Chave in the local market. BHIKHABHAI GORDHANDAS: CRISIL Suspends B+ Rating on INR12MM Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bhikhabhai Gordhandas & Co. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12 CRISIL B+/Stable Suspended Letter of Credit 45 CRISIL A4 Suspended Proposed Short-Term 43 CRISIL A4 Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by BGC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BGC is yet to provide adequate information to enable CRISIL to assess BGC's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. CRISIL has combined the business and financial risk profiles of Anay Agency and Bhikhabhai Gordhandas and Company (BGC), together referred to as the Anay group. The consolidated approach is because both the firms are in the same line of business and are under a common management, and have common customers and suppliers. The Anay group commenced its operations through its flagship entity, BGC, a proprietary concern based in Mumbai (Maharashtra) that was established in 1967 by the father of the current proprietor, Mr. Suresh Parekh. Since, 1980, Mr. Suresh Parekh has been managing BGC's operations. Anay Agency was established in 2007 by Mr. Suresh Parekh and Mr. Hardik Parekh. Both the proprietary concerns are engaged in trading of steel and steel products, chemicals, and spices COIMBATORE HITECH: CRISIL Reaffirms B+ Rating on INR83MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Coimbatore Hitech Infrastructure Pvt Ltd continues to reflect the volatility in CHIPL's revenues and profitability and the moderation in demand for office space in its special economic zone (SEZ) land. These rating weaknesses are partially offset by CHIPL's above-average financial risk profile, marked by healthy net worth and capital structure. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 83.00 CRISIL B+/Stable (Reaffirmed) Bank Loan Facility Outlook: Stable CRISIL believes that CHIPL will continue to benefit from its significant land holdings and its healthy capital structure, over the medium term. The outlook may be revised to 'Positive' if CHIPL's revenue increases and profitability improves substantially on back of significantly higher than expected leasing of land space and the resultant surplus cash accruals utilised to improve the company's liquidity profile. Conversely, the outlook may be revised to 'Negative' if CHIPL undertakes a large debt-funded capital expenditure programme, thereby adversely affecting its capital structure, or it extends any substantial support to its group entities, resulting in further weakening in its liquidity. Set up in 2007 by Mr. Ashok Bakthavathsalam, CHIPL develops SEZs and leases out developed land to information technology (IT) and IT-enabled services companies. DELTA INFRALOGISTICS: CARE Assigns 'BB' Rating to INR14cr Loans --------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Delta Infralogistics (Worldwide) Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14 CARE BB Assigned Facilities Short-term Bank 2 CARE A4 Assigned Facilities Rating Rationale The ratings are primarily constrained by the company's stressed liquidity position resulting from delayed payments from major customers and instances of overdrawal in cash credit facility. Furthermore, the ratings also factor in the risk inherent in the logistics industry in terms of intense competition and susceptibility of its operation to economic slowdown resulting in a slowdown in global EXIM trade and slowing capex cycle. The above constraints are partially offset by the experienced promoters, long-term relationship with customers and clearing agents and stable profitability along with a comfortable capital structure. Going forward, the ability of the company to sustain its profitability margins and efficient management of its working capital requirements would be the key rating sensitivities. Incorporated in 1998, Delta Infralogistics (worldwide) Ltd is promoted by Mr Ahmed Mohiuddin and Mr Shahanaz Mohiuddin under the name of HML Agencies Pvt Ltd. In 2010, the company was converted into a public limited company and the name was changed to 'Delta Infralogistics (worldwide) Ltd'. It is the flagship company of the Delta group which operates in diversified fields of shipping services, logistics services, infrastructure and construction and trading activities. Delta reported a PAT of INR7.7 crore on a total income of INR110 crore in FY13 (provisional) (refers to the period April 01 to March 31). DELVAL FLOW: CRISIL Cuts Ratings on INR185MM Loans to 'BB+' ----------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of DelVal Flow Controls Pvt Ltd to 'CRISIL BB+/Stable/CRISIL A4+' from 'CRISIL BBB-/Negative/CRISIL A3'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 85 CRISIL A4+ (Downgraded from 'CRISIL A3') Cash Credit 130 CRISIL BB+/Stable (Downgraded from 'CRISIL BBB-/Negative') Term Loan 55 CRISIL BB+/Stable (Downgraded from 'CRISIL BBB-/Negative') The rating downgrade reflects the continued stretch in DelVal's working capital cycle, which has led to deterioration in its liquidity. Its gross current assets increased to over 240 days as on March 31, 2013, from around 220 days as on March 31, 2012. This was primarily because of increased receivables, and led to nearly full utilisation of its bank limits. There is also a consistent stretch in DelVal's creditors, which were at 160 days as on March 31, 2013. CRISIL believes that the company's working-capital- intensive operations will continue to constrain its liquidity over the medium term. The ratings reflect DelVal's moderate financial risk profile, marked by a moderate net worth, comfortable gearing, and adequate debt protection metrics, and the extensive experience of the company's promoters in the valve industry. These rating strengths are partially offset by DelVal's small scale of operations, and large and increasing working capital requirements. Outlook: Stable CRISIL believes that DelVal will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company's working capital cycle improves and if it generates more-than-expected net cash accruals, thereby improving its liquidity. Conversely, the outlook may be revised to 'Negative' if DelVal reports a further stretch in its working capital cycle, if its net cash accruals decline, or if it undertakes a substantially debt-funded capital expenditure programme, thereby weakening its capital structure or liquidity. Incorporated in 2005, DelVal commenced commercial operations in 2006. The company was set up by Mr. Arun Shiroor and Deltech LLC USA, with each having a 50 per cent stake in the company. The promoters have more than three decades of experience in the valve industry. DelVal manufactures flow-control products such as butterfly and ball valves, and actuators-and-valves automation systems, with the scope of its activities involving assembling and machining to some extent. The company mainly caters to requirements of chemical industries, water treatment plants, the oil and gas sector, and power industries. DelVal reported a profit after tax (PAT) of INR28.5 million on net sales of INR631.9 million for 2012-13 (refers to financial year, April 1 to March 31), against a PAT of INR29.4 million on net sales of INR608.0 million for 2011-12. DHARANIDARA SPINNING: CRISIL Suspends 'D' INR227.3MM Loan Ratings ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Dharanidara Spinning Mills Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 16.8 CRISIL D Suspended Cash Credit 44.0 CRISIL D Suspended Letter of Credit 50.0 CRISIL D Suspended Long-Term Loan 60.0 CRISIL D Suspended Packing Credit 7.5 CRISIL D Suspended Proposed Long-Term Bank Loan Facility 44.0 CRISIL D Suspended Proposed Packing 5.0 CRISIL D Suspended Credit The suspension of ratings is on account of non-cooperation by DSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DSPL is yet to provide adequate information to enable CRISIL to assess DSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Incorporated in 1994, DSPL manufactures yarn and ready-made garments. The company manufactures various counts of cotton yarn ranging from 10s to 34s, with capacity of 13,296 spindles. DIVY ROLLFORM: CARE Assigns 'BB' Rating to INR6.64cr LT Loans ------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Divy Rollform Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6.64 CARE BB Assigned Facilities Short-term Bank 1.00 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Divy Rollform Limited are primarily constrained on account of its modest scale of operations in a highly fragmented and cyclical steel industry, declining profitability, moderate leverage and debt coverage indicators and weak liquidity position. The ratings are further constrained by the susceptibility of its profitability to raw material price fluctuations and implementation risk associated with ongoing capex. The ratings, however, draw strength from the experience of the promoter and locational advantage owing to proximity to the industrial cities. The ability of DRL to successfully complete the ongoing capex and stabilize operations and improve its profitability in light of the competitive nature of the industry will be the key rating sensitivities. DRL was incorporated in 1998 and commenced commercials operations in 2001. DRL is engaged in the manufacturing of high quality cold rolled sections (mild steel as well as stainless steel) and profiles at its manufacturing facility located at Vavdi, around 35 kms from Ahmedabad. The company is constructing its second factory at Navagam, approximately 12 kms away from the existing facilities, which is envisaged to complete by January 2014 and commercial operations are proposed to commence by March 2014. During FY12 (refers to the period April 1 to March 31), DRL reported a total operating income of INR17.55 crore (FY11: INR8.96 crore) and a PAT of INR0.50 crore (FY11: INR0.27 crore). As per the provisional result for FY13, DRL registered a total income of INR25.57 crore and PAT of INR0.71 crore. GSR VENTURES: CRISIL Reaffirms 'B' Rating on INR70MM Loan --------------------------------------------------------- CRISIL's rating on the bank facilities of GSR Ventures Pvt Ltd continue to reflect the high degree of geographic and customer concentration in its revenue profile, and its working capital intensive operations. These rating weaknesses are partially offset by its above-average financial risk profile, marked by its modest net worth, low gearing and above-average debt protection metrics. Also, GSR benefits from its promoters' extensive experience in the civil construction industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 70.0 CRISIL B/Stable (Reaffirmed) Bank Guarantee 350.0 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that GSR will continue to benefit over the medium term from its established presence in the civil construction industry and its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a significant and sustained improvement in its revenues and profitability, or a substantial increase in its net worth because of equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if there is a steep decline in GSR's profitability or a significant deterioration in its capital structure because of large debt-funded capital expenditure. GSR was established as a partnership firm in 1971-72 (refers to financial year, April 1 to March 31), and reconstituted as a closely held company in 2008-09. The company undertakes civil construction activities, including canal earthwork excavation, embankment construction, and construction of bridges. HINDUPUR STEEL: CARE Rates INR21cr LT Bank Loans at 'B+' -------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Hindupur Steel & Alloys Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 21 CARE B+ Assigned Facilities Rating Rationale The rating assigned to the bank facilities of Hindupur Steel & Alloys Pvt Ltd is primarily constrained by its short track record of operations, susceptibility of operating margins to raw material price fluctuation, intense competition due to the fragmented nature of the industry, customer concentration risk, weak financial risk profile characterized by its small scale of operation with net loss, small net-worth base, weak debt service coverage indicators and sluggish growth in user industries and cyclicality in the industry. The rating, however, derives strength from the wide experience of the promoters in the iron and steel industry and presence of forward integration for the manufacturing of rolled products from MS ingots. The ability of HSAPL to increase its scale of operations with an improvement in profitability margins and effective management of working capital would be the key rating sensitivities. Hindupur Steel & Alloys Private Limited, incorporated in May 2009, was promoted by brothers Mr Suresh Goyal and Mr Vikas Goyal based out of Raipur, Chhattisgarh. The company has initially set up a MS Ingots plant at Anantpur, Andhra Pradesh, with an installed capacity of 18,000 MTPA and commenced commercial production since July 2011. Furthermore, with a view of forward integration, HSAPL has set up a rolling mill for manufacturing bars, angles and beam at its existing manufacturing facility with an installed capacity of 30,000 MTPA. The commercial operation from the same has started in March 2013. During FY13 provisional (refers to the period April 1 to March 31), HSAPL reported a total operating income of INR31.47 crore against INR21.48 crore in FY12 and a net loss of INR0.07 crore against net loss of INR0.54 crore in FY12. HOTEL GRAND: CRISIL Suspends 'D' Ratings on INR80MM Loans --------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Hotel Grand International. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 20 CRISIL D Suspended Bank Loan Facility Term Loan 60 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by HGI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HGI is yet to provide adequate information to enable CRISIL to assess HGI's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. A proprietorship firm established by Dr. Sopan N Jatal in Latur, HGI is setting up a hotel in Latur; the hotel is expected to start operations in November - December 2011. It is a three-star hotel with 45 rooms (excluding two suites), a banquet hall, a bar-cum- restaurant (for about 300 people), a multi-cuisine restaurant (about 100 people), a coffee shop, two conference halls, one board meeting room, and a rooftop banquet hall. Besides these amenities, the hotel will also have a club house with a swimming pool, gymnasium, steam sauna, and a pool-side restaurant. JAGRAON CYCLE: CRISIL Suspends 'B+' Ratings on INR81.5MM Loans -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Jagraon Cycle Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 59 CRISIL B+/Stable Suspended Letter of Credit 20 CRISIL A4 Suspended Long-Term Loan 22.5 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by JCI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JCI is yet to provide adequate information to enable CRISIL to assess JCI's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. JCI, a partnership firm, is set up by Mr. Suresh Jain and his family members in 1975. Till 2004, the firm manufactured and exported various bicycle parts, including fly wheels, axels, brake parts, fork fittings, handle bars, saddles, rims, spokes, and other bicycle accessories. Later, it focussed on the production of a single product, fly wheels, and started supplying it to domestic traders who, in turn, supply it in the overseas market. A bicycle fly wheel is a mechanical device over which the chain of the cycle rotates. JCI's unit in Ludhiana (Punjab) has an installed capacity to manufacture around 15000 fly wheels per day. JAI MAA: CARE Assigns B+ Rating to INR8.99cr LT Bank Loans ---------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Jai Maa Sharda Agro And Rice Mills Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.99 CARE B+ Assigned Facilities Short-term Bank 0.50 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Jai Maa Sharda Agro and Rice Mills Private Limited are primarily constrained by its nascent stage of operations coupled with lack of business experience of the promoters in agro based commodities, uncertainty associated with the highly regulated nature of the industry, the working capital intensive nature of operations coupled with an exposure to the vagaries of nature and its presence in a highly fragmented and competitive nature of the industry. The ratings, however, derive strengths from the proximity of its plant to raw material sources and favorable industry scenario. The ability of the company to increase its scale of operations along with an improvement in the profitability and effective management of working capital would be the key rating sensitivities. Jai Maa Sharda Agro & Rice Mills Private Limited, incorporated in February, 2010 was promoted by Mr Ajay Kumar Kejriwal and his three brothers, to set up a rice processing & milling unit of non- basmati rice and sale of its by-products like husk, bran etc in the domestic market. The plant, having an installed capacity of 48,000 metric tonnes per annum (MTPA), is situated in Burdwan district of West Bengal, a major paddy growing area and in close proximity to the local grain market enabling easy paddy procurement. Furthermore, JMS has a sorting capacity of 5 tons/hour. JMS has set up the unit at an aggregate project cost of INR12.2 crore, being financed at a debt-equity ratio of 0.69:1. The plant became operational in June, 2012 with a delay of eight months, on account of the delay due to electricity related issues. However, there was no cost overrun. On account of the deferment of commercial production, repayment terms of its term debt was rescheduled and the repayments commenced from December 2012, against the earlier scheduled date from June 2012. Depending upon the quality of paddy, the company manufactures around different varieties of rice ranging from INR20/kg to INR30/kg. These varieties are sold under the brand name of "Muski" and "Manikarn". KAVISHA MOTORS: CRISIL Suspends 'B+' Ratings on INR125MM Loans -------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Kavisha Motors Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable Suspended Proposed Long-Term 70 CRISIL B+/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by KMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KMPL is yet to provide adequate information to enable CRISIL to assess KMPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. KMPL is managed by Mr. Keshav Aggarwal and his family. Mr. Keshav Aggarwal acquired the company in December 2010 from its previous owner, Mrs. Sharda Bhargava. Incorporated in 1986, KMPL commenced operations by bagging the dealership of Maruti Suzuki India Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+' by CRISIL). Currently, KMPL has one showroom in Bareilly (Uttar Pradesh) on 3S format (sales, service, and spares). KLENZAIDS CONTAMINATION: ICRA Suspends 'BB-' INR8.5cr Loan Rating ----------------------------------------------------------------- ICRA has suspended the '[ICRA]BB-' rating and the '[ICRA]A4' rating assigned to the INR20.50 crore long-term fund based and short-term non-fund based bank facilities of Klenzaids Contamination Controls Private Limited*. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund 8.50 [ICRA]BB- (Stable) Suspended based facility Short-term non- 11.00 [ICRA]A4 Suspended fund based facilities Proposed facilities 1.00 [ICRA]BB- (Stable) and/or [ICRA]A4 Suspended According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. Klenzaids Contamination Controls Private Limited was established in 1978 and is engaged in manufacture of clean-room equipments and process equipments for hospitals, pharmaceutical companies, defence, electronics, food & healthcare sector. The company is also involved in executing regulatory compliant projects for the government. KCCPL has its registered office at MIDC, Andheri and manufacturing facility at Umbergaon, Gujarat. Apart from this, it has support centres located in Delhi, Kolkata, Chennai, Hyderabad and Pune. In FY 11, the company has established a 100% subsidiary in the US by the name Klenzaids Inc. to tap business potential there. LEENA POWER-TECH: CRISIL Suspends 'BB+' Rating on INR100MM Loan ---------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Leena Power-Tech Engineers Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL BB+/Stable Suspended The suspension of ratings is on account of non-cooperation by Leena with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Leena is yet to provide adequate information to enable CRISIL to assess Leena's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Leena (initially a partnership firm) was incorporated in 1999 by Mr. Amit Teckchandani (chairman and managing director). The company undertakes civil construction work for substations, electrification, and power supply, and distribution for various private and public bodies such as IVRCL Infrastructures and Projects Ltd, Larsen & Toubro Ltd, State Bank of India, Reserve Bank of India, City & Industrial Development Corporation of Maharashtra Ltd, Indian Railways, and Maharashtra State Electricity Distribution Company Ltd. Leena is registered as a class 'A' contractor with various government departments. M-TECH INDUSTRIES: CRISIL Suspends BB- Ratings on INR61.3MM Loans ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of M-Tech Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5.5 CRISIL A4+ Suspended Cash Credit 21 CRISIL BB-/Stable Suspended Rupee Term Loan 38.8 CRISIL BB-/Stable Suspended Standby Line of Credit 1.5 CRISIL BB-/Stable Suspended The suspension of ratings is on account of non-cooperation by M- Tech with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, M-Tech is yet to provide adequate information to enable CRISIL to assess M-Tech's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Set up in 1997 by Mr. Manoj Gandhi, M-Tech manufactures industrial moulds for the automobile industry, defence sector, and moulded furniture industry. The firm is setting up a new unit in Silvassa (Dadra and Nagar Haveli) for manufacturing moulded-plastic furniture. The new unit is being set up primarily to cater to Nilkamal Ltd and would become operational by July 2010. MALABAR WATCHES: CRISIL Assigns 'BB-' Ratings to INR80MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long- term bank facilities of Malabar Watches Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB-/Stable (Assigned) Proposed Long-Term Bank Loan Facility 20 CRISIL BB-/Stable (Assigned) The rating reflects the benefits that MWPL derives from being a part of the Malabar group, which has an established clientele base and presence in the jewellery market. This rating strength is partially offset by the company's modest scale of operations and subdued financial risk profile, marked by a modest net worth and a high total outside liabilities to tangible net worth ratio. Outlook: Stable CRISIL believes that MWPL will continue to benefit over the medium term from Malabar group's established presence in the retail segment of India's jewellery market, since a majority of its sales are derived from Malabar group's retail outlets. The outlook may be revised to 'Positive' if the company achieves significant and sustained improvement in its revenues, while improving its capital structure. Conversely, the outlook may be revised to 'Negative' in case of a significant decline in MWPL's revenues or margins, or if there is elongation in its working capital cycle, or if it undertakes a debt-funded capital expenditure programme, resulting in weakening of its financial risk profile. Incorporated in 2004, MWPL is engaged in retailing premium watch brands such as Rado, Tissot, and Omega, among others. The company is part of the Kerala-based Malabar group, which has business interests in jewellery, real estate, and hospitality. Its day-to- day operations are managed by Mr. Zibin Ali Hassan (executive director) and Mr. V Mohan (director). MWPL has seven branches and six retail watch outlets spread over southern India. Its registered office is in Kozhikode (Kerala). MWPL reported, on a provisional basis, a profit after tax (PAT) of INR8.4 million on net sales of INR283.3 million for 2012-13 (refers to financial year, April 1 to March 31); it had reported a PAT of INR4.0 million on net sales of INR178.8 million for 2011- 12. MANJUSHRI CONSTRUCTION: CRISIL Puts BB+ Ratings on INR71MM Loans ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to the bank facilities of Manjushri Construction Company. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 36 CRISIL BB+/Stable (Assigned) Bank Loan Facility Overdraft Facility 19 CRISIL A4+ (Assigned) Bank Guarantee 60 CRISIL A4+ (Assigned) Cash Credit 35 CRISIL BB+/Stable (Assigned) The ratings reflect the benefits that MCC derives from its partners' extensive experience in the civil construction industry. The ratings also factor in MCC's above average financial risk profile marked by healthy capital structure and strong debt protection metrics. These rating strengths are partially offset by MCC's modest scale of operations in highly competitive civil construction industry and working capital intensive nature of operations. Outlook: Stable CRISIL believes that MCC will benefit over the medium term from the extensive experience of its partners in the civil construction industry. The outlook may be revised to 'Positive' in case of significant scale-up of its operations while maintaining its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' in case of a significant decline in revenues or profitability margins, or elongation in its working capital cycle resulting in a weakening in its financial risk profile. MCC, a partnership firm formed in 1989 by Shimoga (Karnataka) based Mr. Dayananda Shetty and his wife Mrs. Vathsala Shetty is engaged in construction and repair of roads in Shimoga. The firm also undertakes repair of buildings in Shimoga. For 2012-13 (refers to financial year, April 1 to March 31), MCC reported on a provisional basis a profit after tax (PAT) of INR26.3 million on net sales of INR 459.6 million, against a PAT of INR22.2 million on operating income of INR 392.5 million for 2011-12. MILLENIUM EXIM: ICRA Puts 'B' Ratings on INR6.25cr Loans -------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to the INR3.00 crore term loan, INR3.00 crore cash credit and INR0.25 crore untied fund based bank facilities of Millenium Exim Private Limited. ICRA has also assigned an '[ICRA]A4' rating to the INR0.25 crore non-fund based bank facility of MEPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- 3.00 [ICRA]B assigned Cash Credit Fund Based Limits- 3.00 [ICRA]B assigned Term Loan Fund Based Limits- 0.25 [ICRA]B assigned Untied Limit Non Fund Based 0.25 [ICRA]A4 assigned Limits-Bank Guarantee The assigned ratings take into account promoters' lack of experience in the manufacturing and marketing of instant noodles, which may expose the company to high competitive pressure from the players with established brands and distribution networks, and vulnerability of the company's profitability to raw material price fluctuations given the limited room for increasing the Maximum Retail Price (MRP) of the products. ICRA also notes that the future cash flow of the company would be highly sensitive to the product acceptance and effective management of the distribution network. The ratings, however, favourably consider the locational advantage the unit will enjoy, post-commissioning, in regard to the sourcing of raw materials and dispatch of finished goods; achievement of debt tie-up, which along with infusion of entire portion of promoters' contribution mitigates funding risk significantly and the favourable demand prospects for instant noodles driven by the change in the socio-demographics of the country. Going forward, the company's ability to complete the project within budgeted cost and time and penetrate the market successfully would be the key rating sensitivities. Incorporated in 2007, MEPL is in the process of setting up a plant for manufacturing of instant noodles at Jhowguri, Matighara, West Bengal. The installed capacity of the plant will be 4,800 MTPA. The project is scheduled to be commissioned in Q3FY14. The noodles are to be sold under the brand name of 'My Noodles'. NANDI VARDHANA: CARE Assigns 'BB' Rating to INR22.43cr Loans ------------------------------------------------------------ CARE assigns 'CARE BB/A4' ratings to the bank facilities of Nandi Vardhana Textile Mills Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 22.43 CARE BB Assigned Facilities Short-term Bank 3.00 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Nandi Vardhana Textile Mills Limited are constrained by its moderate scale of operations and highly fragmented nature of the industry, highly leveraged capital structure with working capital intense nature of operations and profitability margins susceptible to volatility in raw material prices and adverse movement in the exchange rates. The ratings, however, derives strength from the experience of the promoters in the industry, raw material availability and backward integration of the group and significant growth in the total operating income. The ability of the company to increase its scale of operations with an improvement in the financial risk profile is the key rating sensitivities. Nandi Vardhana Textile Mills Limited (NVTML) was incorporated in the year 2005 by Mr P Srinivasa Rao, Mr G Anjaiah and Mrs P Padmavathi. NVTML is engaged in the manufacturing of cotton yarn with an overall installed capacity of 20,448 spindles at its manufacturing unit located at Thimmapuram, Guntur District, Andhra Pradesh. NVTML is manufacturing and supplying cotton yarn for both domestic as well as international markets. NVTML exports its products to countries such as Turkey, Brazil and China which constituted around 44% of the total operating income in FY13. (refers to the period April 1 to March 31) The raw material, cotton lints is purchased domestically and cotton being seasonal in nature is available throughout the year but generally at high prices during off season. The firm also sells waste cotton, which contributed to about 7.95% of the total operating income in FY13. During FY13, NVTML reported a total operating income of INR55.77 crore and a PAT of INR2.91 crore as against a total operating income and PAT of INR 43.55 crore and INR 0.22 crore respectively in FY12 (audited). NARAYANI SILKS: CRISIL Suspends 'B' Rating on INR28MM Loan ---------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Narayani Silks. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Overdraft 28 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by Narayani Silks with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Narayani Silks is yet to provide adequate information to enable CRISIL to assess Narayani Silks's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Set up in 2006 by Ms. Shyama Bai Agrawal as a proprietary concern, Narayani Silks is into retailing of women's wear, men's wear and kids' wear through its single showroom of 15,000 square feet at Bhimavaram (Andhra Pradesh). The firm's operations are being managed by the founder's son, Mr. Vikesh Agrawal. Narayani Silks derives around 50 per cent of its revenues from the sale of sarees, and the rest from sale of other garments for women, and from sale of men's wear and kids' wear. The firm also deals with various branded garments such as Raymonds, Pan America, Peter England, Lee, and Levis. NARMADA AGRO: CRISIL Suspends 'B+' Ratings on INR65MM Loans ----------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Narmada Agro Foods Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable Suspended Term Loan 35 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by NAFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NAFPL is yet to provide adequate information to enable CRISIL to assess NAFPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. NAFPL was set up in 2009 for milling and processing non-basmati parboiled rice. The company's manufacturing facility at Ranchi (Jharkhand) has capacity to process 38,400 tonnes of rice per annum. NAFPL procures paddy mainly from farmers and traders in West Bengal, Bihar, Jharkhand, and Orissa. The company's day-to- day operations are looked after by its promoter-director Mr. Mahendra Jain, and Mr. Ashok Jain. NAFPL commenced operations in July 2011. NIMRA EDUCATIONAL: CRISIL Suspends 'D' Ratings on INR80MM Loans --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Nimra Educational Society. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 10 CRISIL D Suspended Term Loan 70 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by NES with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NES is yet to provide adequate information to enable CRISIL to assess NES's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. NES was set up in 1991 by Dr. Mohammed Vizarath Rasool Khan under the Andhra Pradesh Societies Registration Act, 1350 Fasli. The society operates seven colleges in and around Vijayawada and Ongole (both in Andhra Pradesh), offering varied courses, such as bachelor of technology, bachelor of pharmacy, master of technology, master of computer application, master of pharmacy, and master of business administration. Currently, NES runs five engineering colleges, one pharmacy college, and one business management college, with total student strength of around 2000. All the colleges are affiliated to the Jawaharlal Nehru Technical University, Kakinada (Andhra Pradesh). The society plans to open a medical college affiliated to Dr. Nandamuri Taraka Rama Rao University of Health Sciences (NTR University) with student strength of 150 and a 300-bed hospital by 2013-14 (refers to financial year, April 1 to March 31). NM LOK: ICRA Suspends 'BB-' Rating on INR12.5cr Term Loans ---------------------------------------------------------- ICRA has suspended the '[ICRA]BB-' rating assigned to the INR12.5 crore term loans of NM Lok Kalyan Trust. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. NUTAN ISPAT: CARE Assigns 'BB+' Rating to INR21cr LT Bank Loans ---------------------------------------------------------------- CARE assigns 'CARE BB+' & 'CARE A4+' rating to the bank facilities of Nutan Ispat & Power Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Bank 21.0 'CARE BB+' Assigned Facilities (Fund based) Short-Term Bank 1.5 'CARE A4+' Assigned Facilities (Fund based) Short-Term Bank 11.5 'CARE A4+' Assigned Facilities (Non Fund based) Rationale The above rating is constrained by small scale of operations, low capacity utilisation, volatility in prices of inputs & finished goods, low profit level & margins, working capital intensive nature of operations, intense competition from organized and unorganized players and cyclicality of the steel industry. However, the rating derives strength from the experienced promoters & satisfactory track record of the company, locational advantage in terms of proximity to raw material sources and end user market and satisfactory gearing ratios. Effective management of the working capital requirements, increase in capacity utilisation & improvement in profitability remains the key rating sensitivities. Nutan Ispat & Power Pvt Ltd, promoted by Sri Pradeep Kr. Agarwal and his nephew Shri Rahul Agarwal was incorporated in 2002. NIPPL is engaged in the production of sponge iron and structural steel with manufacturing facility located in Raipur, Chhattisgarh. The company has two separate divisions, namely Sponge Iron Division (SID) - installed annual capacity of 60,000 MT and Rolling Mill Division (RMD) - installed annual capacity of 50,000 MT, which includes angles, channels and beams. Apart from this, company has manufacturing facilities for Mild Steel Ingots and Cast Iron with an installed annual capacity of 25,200 MT which was acquired in December 2010 from its group company. The company is also engaged in job work assignments with regard to its RMD and it contributes around 5-7% of the sales. RSCL earned PBILDT and PAT of INR7.2 crore & INR0.8 crore respectively on a total income of INR96.1 crore in FY13 against PBILDT and PAT of INR7.9 crore and INR0.3 crore respectively on total income of INR 86.1 crore in FY12. PALATHUMPATTU SKY: CRISIL Assigns 'BB' Rating to INR60MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term bank facility of Palathumpattu Sky Jewellery (PSJ; part of the PS group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB/Stable (Assigned) The ratings reflect the extensive experience of PS Group's promoters in the gold jewellery segment, and it's above average financial risk profile marked by healthy debt protection metrics. These rating strengths are partially offset by PS Group's modest scale of operations and susceptibility to intense competition in the fragmented gold retailing industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of PSJ and its group entities, Sky Collection (SC), Sky Silk(SS), Sky Hotel cum Shopping Arcade (Voyage) (SH) , Baskin Robbins (Club 7) (BR) and Arun Exports(AE). This is because these entities have significant financial fungibility among them. Outlook: Stable CRISIL believes that PS Group will continue to benefit over the medium term from its promoters' extensive experience in the gold jewellery segment. The outlook may be revised to 'Positive' if the group registers significant improvement in scale of operations while maintaining its profitability, resulting in improvement in its business risk profile. Conversely, the outlook may be revised to 'Negative' if PS Group records lower-than-expected accruals or if it undertakes a large debt-funded capital expenditure programme, or in case of greater-than-expected capital withdrawals by partners , resulting in weakening in its financial risk profile. PS group derives majority of its revenues from gold retailing. PSJ is the flagship firm of the group and is involved in the business of retailing gold Jewellery. SC retails in readymade garments, SS retails in silk sarees, SH manages a shopping mall and a hotel, BR manages an icecream parlour and AE is involved in the business of export of gold Jewellery. The daily operations of the group is managed by Mr. Ninan John. The group reported a profit after tax (PAT) of INR 13 million on net sales of INR 204 million for 2011-12 as against a PAT of INR 12 million on net sales of INR 184 million for 2010-11. PIMS MEDICAL: CRISIL Suspends 'D' Ratings on INR2.2BB Loans ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Pims Medical & Education Charitable Society. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 350 CRISIL D Suspended Term Loan 1,850 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by PIMS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PIMS is yet to provide adequate information to enable CRISIL to assess PIMS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. PIMS was set by the Punjab state government to set up a medical institute at Jalandhar, Punjab. The government undertook a capital expenditure (capex) of INR1.18 billion on civil works; thereafter, it decided to carry on the project in a public private partnership (PPP) mode. In 2009, a group comprising NRI Academy of Sciences, Vijayawada (Andhra Pradesh) EDS Technologies Pvt Ltd (Bengaluru), St. Joseph's Healthcare System Inc, (Paterson, New Jersey, USA) and a group of physicians/businessmen led by Mr. Apparao Mukkamala, Mr. Rakesh Mahajan and Mr. Shrikant Mehta and Dr Suresh Anne and Dr. Sai Ramesh Bikkina were awarded the project of development of PIMS under the PPP mode. The total cost of project is estimated to be INR3.00 billion funded through term loans of INR1.85 billion and balance through promoters' contribution. The project is expected to be completed by end of March 2012. PIYUSH INFRATECH: CRISIL Ups Ratings on INR200MM Loan to 'BB-' -------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Piyush Infratech Pvt Ltd to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL A4+ (Upgraded from 'CRISIL A4') Cash Credit 200 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') The upgrade in ratings follows substantial and sustainable improvement in the company's business risk profile backed by more than doubling of revenues, healthy profitability and a large order book providing medium term revenue visibility. The company's revenues increased to close to INR1 billion in 2012-13 (refers to financial year, April 1 to March 31) from close to INR400 million in the previous year, while maintaining the operating margin at 13 per cent. This has led to a surge in accruals to about INR76 million in 2012-13, up from INR13 million in the previous year. Moreover, the company is expected to continue on its growth path backed by its strong order book of about INR5 billion as on September 30, 2013, which is to be completed over the next two years and provides medium term revenue visibility. The company's ability to raise adequate funds to execute its large order book in a timely manner, however, remains a key rating sensitivity factor. The ratings reflect the extensive experience of Piyush's promoters in the construction business. This rating strength is partially offset by its high working capital intensity of operations, customer concentration in revenue profile and average financial risk profile. Outlook: Stable CRISIL believes that Piyush will continue to benefit over the medium term from its promoters' extensive experience and its strong order book. The outlook may be revised to 'Positive' if Piyush's liquidity improves significantly, most likely driven by improved working capital management or by infusion of long-term funds. Conversely, the outlook may be revised to 'Negative' if Piyush's financial risk profile deteriorates, most likely because of large debt-funded capital expenditure, stretch in working capital cycle or lower-than-expected net cash accruals. Piyush was reconstituted as a private limited company from a partnership firm in June 2013. Piyush is based in Aurangabad (Maharashtra) and is in the business of civil construction. It specialises in execution of irrigation projects, comprising barrages, earthen concrete dams, and canals, and undertakes civil construction work for the Indian Railways. It also has two windmills, with a combined capacity of 1.25 megawatts. Piyush, on a provisional basis, reported a profit after tax (PAT) of INR73.4 million on net sales of INR973 million for 2012-13, against a PAT of INR24.2 million on net sales of INR390 million for 2011-12. PRAKASH STAINLESS: CRISIL Reaffirms 'B+' Rating on INR150MM Loans ----------------------------------------------------------------- CRISIL's rating on the bank facilities of Prakash Stainless Private Limited continue to reflect its subdued financial risk profile marked by modest net worth, a high total outside liabilities to tangible net worth (TOLTNW) ratio and weak debt protection metrics, and exposure to risks inherent in the highly competitive steel trading industry. These weaknesses are partially offset by the extensive experience of PSPL's promoters in the steel industry, support from other companies of the Prakash Group and its established relationships with suppliers and customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that PSPL will continue to benefit over the medium term from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if PSPL records a significant and sustained increase in its revenues and profitability while improving its capital structure and debt protection indicators. Conversely, the outlook may be revised to 'Negative' in case of a decline in PSPL's revenues and margins or lengthening of its working capital cycle, leading to a deterioration of its financial risk profile. Update PSPL's revenues remained flattish, declining 4 per cent year-on- year to INR706.5 million in 2012-13, on account of sluggish demand from the company's major customers. PSPL's revenues for 2012-13 were muted on account of a slowdown in its key user sectors i.e. automobiles, construction, and infrastructure. For 2013-14, PSPL's revenues are expected to grow modestly to around INR700 to 750 million for the year. The company has already recorded sales of around INR350 million till September 30, 2013. The company's operating margins was at around 3.7 per cent in 2012-13 which is expected to be around similar levels over the medium term. The company's operations are highly working-capital-intensive, with gross current asset (GCA) days at around 233 days as on March 31, 2013. The high GCA days emanate from the company's high inventory and stretched receivables of around 127 days and 110 days respectively as on March 31, 2013. PSPL's financial risk profile continues to remain subdued marked by a modest net worth of around INR51.7 million, and a TOLTNW of around 6.5 times, as on March 31, 2013. The company's debt protection metrics are also subdued, with net cash accruals to total debt ratio and interest coverage ratio at around 0.01 times and 1.16 times respectively for 2012-13. PSPL has moderate liquidity, with average bank limit utilisation of around 95 per cent over the 12 months through August 2013. In 2012-13, PSPL's cash accruals are around INR2.6 million; the same are expected to grow moderately over the medium term, against which the company has no term debt obligations. PSPL, incorporated in 2007, is engaged in the trading of flat steel products such as coils, plates, pipes and tubes. The company trades in M.S. angles and channels as well. Initially the operations were carried out under a proprietorship concern of Mr. Prakash Kanugo, 'Prakash Steels' since the mid 1970s. Subsequently the operations were shifted to PSPL in 2007. The company is a part of the Mumbai-based Prakash group, having an established presence in the flat steel manufacturing and trading business. Its business operations are managed by Mr. Prakash Kanugo and Mr. Suraj Burad. PSPL reported, on a provisional basis, a profit after tax (PAT) of INR2.5 million on net sales of INR706.6 million for 2012-13 (refers to financial year, April 1 to March 31); it had reported a PAT of INR2.3 million on net sales of INR734.8 million for 2011- 12. PRESTIGE EXPRESSMART: CRISIL Suspends B+ Rating on INR50MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facilities of Prestige Expressmart Steel Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by PESPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PESPL is yet to provide adequate information to enable CRISIL to assess PESPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. PESPL was incorporated in 2009 and is promoted by Mr. Sanjesh Gupta and his cousin, Mr. Vishal Gupta, and its office is located in Raipur (Chhattisgarh).The company trades in hot and cold rolled products, such as hot rolled (HR) sheets, HR plates, beam plates, corrugated cold rolled sheets, and electric resistance welded pipes. The company is the exclusive distributor of galvanised steel products of Essar in Chhattisgarh. Around 50 per cent of the sales are contributed from sales of Essar products, while the remaining is from trading of local-made steel products. The promoters' family has been trading in steel products for more than 35 years. R F MOTORS: CRISIL Reaffirms 'B+' Ratings on INR231.8MM Loans ------------------------------------------------------------- CRISIL ratings on the bank facilities of R F Motors Pvt Ltd (RF Motors) continue to reflect RF Motors' below-average financial risk profile, marked by modest net worth, high gearing, and weak debt protection metrics, and the company's susceptibility to intense competition in the automobile dealership business and to slowdown in passenger vehicles industry. These rating weaknesses are partially offset by the extensive entrepreneurial experience of RF Motors' management and the company's established relationship with its principal, Tata Motors Ltd (TML). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 33.8 CRISIL A4 (Reaffirmed) Cash Credit 131.8 CRISIL B+/Stable (Reaffirmed) Inventory funding Inventory funding 100.0 CRISIL B+/Stable (Reaffirmed) limit Outlook: Stable CRISIL believes that RF Motors will continue to benefit from its promoters' experience and from its established market position in Ernakulum (Kerala). The outlook may be revised to 'Positive' if RF Motors' financial risk profile improves, resulting from better- than-expected cash accruals along with improvement in capital structure. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates because of less- than-expected cash accruals, further drop in sales due to industry slowdown or larger-than-expected working capital requirements or debt-funded capital expenditure, or if its relationship with the principal deteriorates. RF Motors was set up in 2004 and is a dealer of TML's passenger cars in Central Kerala. The company is promoted by Mr. M M Farook and his family members. For 2012-13 (refers to financial year, April 1 to March 31), RF Motors reported a profit after tax (PAT) of INR0.69 million on net sales of INR767 million, against a PAT of INR4.2 million on net sales of INR980 million for 2011-12. RAJASTHAN IRON: ICRA Reaffirms 'B+' Rating on INR10.25cr Loans -------------------------------------------------------------- ICRA has re-affirmed the long term rating assigned to the INR10.25 crore fund based bank facilities of Rajasthan Iron Company at '[ICRA]B+'. ICRA has also re-affirmed the short term rating assigned at '[ICRA]A4' to the INR0.75 crore non fund based facilities of RIC. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 10.25 [ICRA]B+ reaffirmed Based Limits Short Term Non 0.75 [ICRA]A4 reaffirmed Fund Based Limits The reaffirmation of the ratings factor in the deteriorated financial risk profile with steep fall in profitability owing to fall in steel prices and resultant loss on inventory liquidation, leading to stretched coverage indicators; high counter party credit risk with majority of the sales made on credit basis and highly fragmented nature of the steel trading industry characterized by intense competition. Further, the firm also remains exposed price risk on the inventory and also to the risk of partners withdrawing capital from the business. The ratings however favourably factor in established track record of over four decades in the steel trading business with established trade links which ensure smooth supply of iron and steel products and the diversified client base. Rajasthan Iron Company is a partnership firm established in Kakinada, East Godavari District, Andhra Pradesh in 1970 by Mr.Bheekamchand. The firm trades in all kinds of steel materials such as channels, angles, rounds, TMT bars, beams etc. RASESHWARI METALLICS: CARE Assigns 'B+' Rating to INR6cr Loans -------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Raseshwari Metallics Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6 CARE B+ Assigned Facilities Short-term Bank Facilities 0.75 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Raseshwari Metallics Private Limited are primarily constrained by its small scale of operations with low profit margins, leveraged capital structure, weak debt service coverage indicators and working capital intensive nature of operations. The ratings are further constrained by competition from the various organized & unorganized players and susceptibility of profitability to fluctuations in the prices of raw materials. The ratings, however, find support from the experienced promoters and association with large and reputed manufacturer. Going forward, the ability of the company to increase its scale of operation while improving its profitability margins, effective working capital management and improvement in its capital structure shall be the key rating sensitivities. Raseshwari Metallics Private Limited was incorporated as a Sptiz Investors and Traders Private Limited by Mr Sunder Lal Mittal and Mr Rajan Mittal in 1996. However, in November 2004, its name was changed to RMPL. The company is engaged in the manufacturing of Electric Resistance Welding (ERW) tubes. The manufacturing facility of the company is located at Mohali in Punjab with an installed capacity of 13,708 TPA as on March 31, 2013. The company sells its products mainly in Punjab and New Delhi. The main raw material for the manufacturing of ERW tubes is Hot Roll Coils (HR Coils) and Cold Roll Coils (CR Coils) which are mainly procured from the Steel Authority of India Limited (SAIL- rated CARE AAA). For FY13 (refers to the period April 1 to March 31), RMPL achieved a total operating income of INR24.78 crore and PAT of INR0.09 crore as compared with a total operating income of INR25.44 crore and PAT of INR0.04 crore for FY12. In HIFY14, the company has achieved total operating income of INR17.73 crore. RAVI PLANT: ICRA Assigns 'B' Ratings to INR18.5cr Loans ------------------------------------------------------- A rating of '[ICRA]B' has been assigned to the INR13.50 crore term loan and INR5.00 crore cash credit facility of Ravi Plant Biotechnologies Limited. A rating of '[ICRA]A4' has also been assigned the INR1.00 crore short term sublimit of cash credit facility of RPBL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 5.00 [ICRA]B assigned Term Loan 13.50 [ICRA]B assigned Letter of Credit (1.00) [ICRA]A4 assigned Rating Rationale The assigned rating is constrained by the small scale of operations in a business segment involving manufacture of generic herbicide formulations which is highly fragmented due to the presence of large number of players; as well as, vulnerability to the agro climatic risk caused due to the cyclicality inherent in the agricultural sector and regulatory controls that govern the industry. The ratings further takes into account expected weakening of credit metrics in the near to medium term on account of the significantly large ongoing debt funded capex. While assigning the ratings, ICRA has also considered the high customer concentration risk and limited experience of the promoters in the intensively competitive micro irrigation industry resulting in high marketing risk. ICRA however favorably factors in the company's established track record in herbicides manufacturing business, diversified product portfolio, stable demand prospects and established relationship with large and reputed agro chemical companies. Incorporated in 2004 by Mr. K. V. Rao, Ravi Plant Biotechnologies Limited is currently engaged in manufacturing of herbicides formulations. The company operates from its manufacturing facility located at Halol near Vadodara city with an installed capacity of ~3000 KL per annum. RPBL enters into contract manufacturing as well as job work with respect to generic pesticide formulation and can produce almost all the formulation in varying forms like Emulsifiable Concentrates (EC), Dusting Powders (DP), Granules (G), Wettable Powders (WP), Soluble Powders (SP), Suspension Concentrates (SC), Flowables Slurries (FS), Water Disbursable Granules (WDG), Dry Flowables (DF) and Soluble Granules (SG). RPBL is currently carrying out capacity expansion post completion of which, installed capacity of the company will increase to 15,000 KL per annum. Also, the company is entering into micro irrigation industry with an installed capacity of around 600 lacs meters of drip irrigation pipes per annum. Recent Results During FY 2013, RPBL reported an operating income of INR2.37 crore (as against INR2.06 crore during FY 2012) and profit after tax of INR0.14 crore (as against profit after tax of INR0.09 crore during FY 2012). RENEWABLE ENERGY: ICRA Cuts Rating on INR20cr Loans to 'B-' ----------------------------------------------------------- ICRA has revised the long term rating for the INR20.0 crore fund based facilities of Renewable Energy Generation Private Limited from '[ICRA]BBB(SO)' to '[ICRA]B-'. ICRA has also revised the long term/short term ratings for the INR20.0 crore non-fund based facilities of REGPL from [ICRA]BBB(SO)/[ICRA]A3+(SO) to [ICRA]B-/ [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Facilities 20.0 [ICRA]B- revised Non-Fund Based Facilities 20.0 [ICRA]B-/[ICRA]A4 revised The revision in the ratings of REGPL follows the recent downgrade of the ratings of its parent entity and guarantor - Regen Powertech Private Limited from [ICRA]BBB (Negative) / [ICRA]A3+ to [ICRA]D/[ICRA]D with the latter's weakened liquidity profile in the past three months. Accordingly, RPPL's ability to support timely servicing of REGPL's bank facilities as per the terms of the underlying guarantee arrangement is diminished. As the debt servicing of REGPL continues to be as per schedule, ICRA has reassigned the ratings on a standalone basis. Nevertheless, REGPL's standalone credit profile, on account of the company's close operational & financial linkages with RPPL, will be influenced by the latter's credit profile. REGPL is the sole service provider for facilitation of land acquisition, and erection & commissioning of RPPL's Wind Turbine Generators (WTG) installation order book. As such, REGPL's operational & financial performance is closely linked to that of RPPL and was weak in FY2012-13 and YTD FY2013-14. RPPL's and REGPL's order execution in this period was constrained on account of delays in obtaining certain regulatory approvals as well as uncertainties in government policies such as Generation Based Incentives, introduction of competitive bidding, etc., in addition to adverse domestic macroeconomic conditions. The resultant weaker-than-expected financial performance of REGPL is the key factor constraining REGPL's ratings to the current levels. Renewable Energy Generation Private Limited, incorporated in January 2008, is a wholly owned subsidiary of Regen Powertech Private Limited, a manufacturer of Wind Turbine Generators (WTGs). REGPL primarily handles the infrastructure requirements in commissioning a WTG, including facilitation of land acquisition, and the civil works w.r.t. erection and commissioning of WTGs supplied by RPPL. For the FY2012-13, REGPL recorded a loss after tax of INR7.54 crore on an operating income of INR531.04 crore. Guarantor's Profile: Regen Powertech Private Limited was incorporated in December 2006 as a manufacturer of Wind Turbine Generators and end-to-end service provider including consulting, supply, erection, commissioning, and Operation & Maintenance of WTGs. The company has been promoted by Mr. Madhusudan Khemka, Mr. R Sundaresh and Mandava Holdings Pvt. Ltd. through the holding company NSL Power Equipment Trading Pvt. Ltd. (NSL PET). The company has also received private equity investments from various funds - Indivision India Partners (IIP), IDFC Investment Advisors Ltd., MCap India Fund Ltd., TVS Shriram Growth Fund and Summit FVCI. SHIVADARSHAN AGRO: CRISIL Assigns 'B+' Ratings to INR90MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Shivadarshan Agro Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable (Assigned) Standby Line of Credit 10 CRISIL B+/Stable (Assigned) The rating reflects SAI's below-average financial risk profile, marked by small net worth, and its limited size of operations in an intensely competitive rice milling segment. The rating also factors in the susceptibility of the firm's operating margin to adverse government regulations and volatility in raw material prices. These rating weaknesses are partially offset by the extensive industry experience of SAI's partners. Outlook: Stable CRISIL believes that SAI will benefit over the medium term from the extensive industry experience of its management. The outlook may be revised to 'Positive' if the firm's revenues and profitability increase substantially or in case of significant infusion of capital by its partners, resulting in improved capital structure. Conversely, the outlook may be revised to 'Negative' if SAI undertakes aggressive debt-funded expansions, or if the partners withdraw capital from the firm, leading to weakening in its financial risk profile. Set up in 2001 as a partnership firm, Karnataka-based SAI is engaged in the milling and processing of paddy into rice, rice bran, broken rice and husk. It has an installed paddy milling capacity of 70 tonnes per day. SAI recorded a profit after tax (PAT) of INR9 million on net sales of INR284 million during 2012-13 (refers to financial year, April 1 to March 31) as against PAT of INR6 million on net sales of INR241 million during 2011-12. SHREE BALAJI: CRISIL Reaffirms 'BB-' Rating on INR90MM Loan ----------------------------------------------------------- CRISIL's rating on the cash credit facility of Shree Balaji Mining Pvt Ltd continues to reflect SBMPL's moderate financial risk profile, marked by low gearing and comfortable interest coverage ratio, and its promoters' extensive experience in the iron ore trading business. These rating strengths are partially offset by SBMPL's small scale of operations, large working capital requirements, and susceptibility to regulatory changes in the iron ore sector. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL BB-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SBMPL will maintain its moderate financial risk profile over the medium term. The outlook may be revised to 'Positive' if SBPL increases its scale of operations substantially, while maintaining its profitability, leading to larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile, particularly its liquidity, deteriorates, most likely because of lower-than-expected cash accruals or stretch in working capital cycle. SBMPL, incorporated in 2000, trades in iron ore. It buys iron ore from crushers, miners, and traders, mainly in Odisha, and sells to manufacturers of steel and steel intermediaries, and to traders in the domestic market, primarily in Odisha, Jharkhand, and Chhattisgarh. SBMPL also operates three iron ore screening plants. SHREE SAMLESWARI: CARE Assigns 'BB-' Rating to INR7.49cr Loans -------------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Shree Samleswari Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.49 CARE BB- Assigned Facilities The rating assigned by CARE is based on the capital deployed by the proprietor and the financial strength of the entity at present. The rating may undergo change is case of withdrawal of the capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Shree Samleswari Cotton Industries is primarily constrained by its short track record coupled with the small scale of operations in the highly fragmented cotton industry and weak financial risk profile marked by low profitability margins, leveraged capital structure and elongated operating cycle. The rating is further constrained by susceptibility of operating margins to fluctuation in cotton price, high level of government regulations and seasonal nature of the cotton industry with exposure to the vagaries of nature. The rating, however, derives strength from the long experience of the promoter in the cotton ginning business and proximity to the cotton-producing region of Odisha. The ability of SSCI to increase the scale of operations with improvement in profitability margins while managing the volatility associated with the cotton prices and effective working capital management would be the key rating sensitivities. SSCI is a proprietary entity set up in July 2010 by Ms Nitu Agarwal belonging to Bolangir, Odisha. SSCI is engaged in the business of cotton ginning and pressing to produce cotton bales and cotton seeds. The products are mainly used in the manufacturing of cotton yarn in the textile industry and oil extraction. The manufacturing unit of the entity is located at Bolangir, Orissa and has an installed capacity to produce 6,300 Metric Tonne Per Annum (MTPA) for cotton bales and 11,520 MTPA for cotton seeds. During FY13 (refers to the period April 01 to March 31), SSCI reported a total operating income of INR47.4 crore and a PAT (after deferred tax) of INR1 crore. SHRI MAHAVIR: CARE Assigns 'B-' Ratings to INR534.5cr LT Loans -------------------------------------------------------------- CARE assigns 'CARE B-' and 'CARE A4' ratings to the bank facilities of Shri Mahavir Ferro Alloys Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 490.53 CARE B- Assigned Facilities (Term Loan) Long-term Bank 43.97 CARE B- Assigned Facilities (Fund-based) Short-term Bank 15.50 CARE A4 Assigned Facilities (Non-fund Based) Rating Rationale The ratings are constrained by SMFA's short track record, small scale of operation, low capacity utilization, susceptibility to volatility in raw material and finished goods prices, project implementation risk associated with its ongoing projects, weak financial performance in FY13 (refers to the period April 01 to March 31), high gearing as on March 31, 2013 and inherent cyclicality of the steel industry. The ratings, however, derive strength from the experienced promoters, strategic location of its plant with proximity to market and source of raw material and partially integrated facility with captive power plant. The ability of the company to achieve the projected level of profitability through the envisaged level of operational efficiency while completing its on-going integration projects on time remain the key rating sensitivities. Incorporated in September 2001, Shri Mahavir Ferro Alloys Pvt Ltd was established by one Jain family of Rourkela (Orissa) with an objective of setting-up an integrated steel plant. The company after incorporation remained dormant for almost two years and in September 2003, it commenced commercial production of sponge iron in its Kalunga plant. Currently, it is engaged in the manufacturing of sponge iron, MS ingots and MS Billets. The company is augmenting its degree of operational integration by establishing linkage for captive sources of primary raw materials (iron-ore & coal) and setting up of coal washery, railway siding, captive power plant (CPP) and pelletization plant. During FY13 (audited), SMFA reported a net loss of INR16.07 crore on a total operating income of INR120 crore. SRINATH SPINNERS: CRISIL Suspends BB- Ratings on INR198.1MM Loans ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Srinath Spinners Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5.9 CRISIL A4+ Suspended Cash Credit 45 CRISIL BB-/Stable Suspended Letter of Credit 6 CRISIL A4+ Suspended Term Loan 153.1 CRISIL BB-/Stable Suspended The suspension of ratings is on account of non-cooperation by SSL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSL is yet to provide adequate information to enable CRISIL to assess SSL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. CRISIL has combined the business and financial risk profiles of SSL and Srinath Spinning Mills Ltd (SSML), together referred to herein as the SSL group. This is because the two companies are under a common management, and in the same line of business. Moreover, SSML, the holding company, has extended corporate guarantees to the loans of SSL. SSL, incorporated as a public limited company in April 2001 by Mr. Ketan C Parekh, Mr. Premal C Parekh, and Mr. Prem Kumar Agarwal, manufactures coarse yarn. The company commenced commercial production in August 2007, and has capacity of 1440 rotors. SSML, set up in 1995, is the flagship company of the SSL group. Its open-end spinning mills have capacity of 1760 rotors. SRIVALLI SHIPPING: CRISIL Suspends D Ratings on INR150MM Loans -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Srivalli Shipping & Transport Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 7 CRISIL D Suspended Cash Credit 70 CRISIL D Suspended Long Term Loan 33.8 CRISIL D Suspended Proposed Long-Term Bank Loan Facility 39.2 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by Srivalli with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Srivalli is yet to provide adequate information to enable CRISIL to assess Srivalli's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Srivalli was established in 1994 as a partnership firm; it was reconstituted as a private limited company in May 2011. Srivalli is promoted by Mr. Babu Rao, his wife, Mrs. P Babu Rao Eswari, and their son, Mr. Kiran Babu Rao. Based in Visakhapatnam (Andhra Pradesh), Srivalli provides services, such as material handling (at ports), custom house agent, and transportation and warehouse provisioning. TRIDENT TOOLS: CRISIL Suspends 'B+' Ratings on INR137MM Loans ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Trident Tools Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B+/Stable Suspended Letter of Credit 25 CRISIL A4 Suspended Proposed Long-Term Bank Loan Facility 12 CRISIL B+/Stable Suspended Rupee Term Loan 35 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by TTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TTL is yet to provide adequate information to enable CRISIL to assess TTL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. TTL's name was changed to the current one from Magicut Tools Ltd [MTL] on October 6, 2010. MTL was established 1982 by the Gupta family based in Mumbai. In 2000, the Gupta family established a partnership firm, Singarg Manufactures, which was reconstituted as a private limited company, Trident Tools Pvt Ltd (TTPL), in 2004. In 2007-08 (refers to financial year, April 1 to March 31), TTPL merged with MTL, with effect from April 1, 2008. TTL manufactures high-speed steel (HSS) hacksaw blades and HSS tool bits that are used in diverse industries. It also trades non-ferrous metals, such as copper scrap, aluminium scrap, lead ingots, and melting scraps. TTL's registered office is in Palghar (Maharashtra) and its unit was recently shifted from Mumbai (Maharashtra) to Palaghar. Mr. Narendra Gupta and his son, Mr. Ravi Gupta, manage the company's overall operations. VSP ENTERPRISES: ICRA Upgrades Rating on INR8cr Loans to 'BB' ------------------------------------------------------------- ICRA has upgraded the long-term rating outstanding on the INR8 crores fund-based limits of VSP Enterprises Private Limited to '[ICRA]BB' from '[ICRA]BB-'. The outlook on the long-term rating is stable. ICRA has also reaffirmed a short term rating of '[ICRA]A4' to the INR8 crores non fund-based limits of VSPEPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 8.00 Upgraded to [ICRA]BB (Stable) Non-Fund Based Limits 8.00 [ICRA]A4 reaffirmed The log-term rating upgrade factors in the company's shift to power sector which coupled with its reputed client base has resulted in healthy growth in the turnover and profitability in the past few years. ICRA also notes the presence of Price Variation clause which mitigates raw material price fluctuation risk to a great extent. The ratings are however constrained by high competitive industry characterized by low entry barriers and high competition. Moreover,high working capital (due to high receivables) have resulted in weak debt protection metrics for the company. Going forward, the ability of the company to continue augment its revenues and profitability will remain the key rating sensitivity. VSP Enterprises Ltd started its operations as a steel tower fabrication company for the telecom sector in 2004. VSP setup a fabrication unit and a galvanizing facility for setting up transmission lines primarily for the telecom sector. Since inception, VSP was engaged in supplying fabricated structures for towers primarily to private clients namely Bharti Infratel Limited, Indus Towers Ltd, L&T, Viom Networks Ltd. However, due to the slowdown witnessed in the telecom towers segment, the company witnessed a decline in its sales in FY10 and FY11 (CAGR of minus 20%) due to lack of orders from these clients. Henceforth, company shifted its scope of operations to include setting up transmission line towers for the power sector. The company has subsequently added new clients namely RVPNL, UPPTCL, PGCIL etc. in the power space. The shift to power sector with favorable demand outlook has resulted in recovery in the revenues of the company with growth of 50% in FY12 and 37% in FY13 respectively. WORLDSTEL STAINLESS: CRISIL Suspends D INR498.5MM Loan Ratings -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Worldstel Stainless Steels Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 230 CRISIL D Suspended Letter of Credit 70 CRISIL D Suspended Proposed Long-Term 3.5 CRISIL D Suspended Bank Loan Facility Term Loan 195.0 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by WSSL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, WSSL is yet to provide adequate information to enable CRISIL to assess WSSL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. WSSL was incorporated in 2007-08 by Mr. Parveen Kumar Khorana, who set up a stainless steel plant in Bhiwadi (Rajasthan). WSSL is a closely held company and the shareholding is within the Khorana family. The commercial operations of the plant commenced from June 2010. Mr. Parveen Kumar Khorana purchased the plant from M/s Norma Ispat Pvt Ltd in July 2007 for a total consideration of INR100 million. Post the refurbishment and renovation of the plant, it has an installed capacity of 1,00,000 tonnes per annum. WSSL operated at 6 per cent of its installed capacity in the first year of operations, which was 2010-11, thus leading to operational losses. As result, the plant shut down production in April 2011 and continues to remain shut till date. ================= I N D O N E S I A ================= MERPATI NUSANTARA: To Convert Debt to State Firms Into Shares ------------------------------------------------------------- Antara News reports that the debt of PT Merpati Nusantara Airlines to a number of other state companies would be converted into shares, to save the debt ridden state owned airline, an official said. "We agree with the conversion of the debts," Coordinating Minister for Economy Hatta Rajasa said after a meeting to save the airline, Antara News relates. Mr. Hatta said the debt in the form of sub-loan agreement (SLA) to the government would also be converted into non-cash state capital participation, the report relays. According to the report, Mr. Hatta said currently Merpati ran up a total debt of IDR6.7 trillion to 20 creditors. Debts to state companies including airport operators Angkasa Pura I and II, Bank Mandiri, energy company Pertamina and insurance company Jasindo totaled IDR2 trillion. The rest includes IDR2.5 trillion in SLA to the government and around IDR3.2 trillion in tax and to other creditors, Antara News discloses. Antara News relates that Mr. Hatta said the government decided to restructure the debts of Merpati as it believes the airline could still rise from its financial woes. "Merpati is still needed to serve pioneer flights in a number of provinces especially in eastern part of the country," the report quotes Mr. Hatta as saying. Merpati would be given one month to submit its business plan to the government and other loan providers, the report adds. Headquartered in Jakarta, Indonesia, PT Merpati Nusantara Indonesia -- http://www.merpati.co.id/-- is a state-owned carrier that services predominantly international routes. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 19, 2011, The Jakarta Globe said that State Enterprises Minister Mustafa Abubakar said the financial restructuring of Merpati Nusantara Airlines will carry on despite a recent crash that led to questions about the safety of its fleet. Jakarta Globe said Merpati was under the care of the state-asset management company Perusahaan Pengelola Aset, which has injected hundreds of billions of rupiah to bring it back to profitability. But after the crash of a Merpati MA-60 that killed 25 people on May 7, 2011, pressure is building to let the airline go under. ========= J A P A N ========= ORIX-NRL TRUST 15: S&P Cuts Ratings on Trust Certs. to 'D(sf)' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'D (sf)' from 'CCC- (sf)' its ratings on the class D to I trust certificates issued in September 2007 under the ORIX-NRL Trust 15 transaction. Of the loans and specified bond that back the transaction, the servicer completed the sale of the collateral property for the specified bond. However, the specified bond, which had defaulted, incurred a principal loss following the property sale. The specified bond originally represented about 14% of the total initial issuance amount of the trust certificates. "We lowered to 'D (sf)' our ratings on classes D to I because we confirmed that interest payments on these classes were impaired on the trust payment date in November 2013, and no payments of unpaid interest are set to be made in the future," S&P said. Currently, only two loans extended to two obligors with unsold collateral properties remain, and these two loans have defaulted. A retail building in Tokyo's Meguro Ward currently backs the first loan, which originally represented about 41% of the total initial issuance amount of the trust certificates. A retail building in Tokyo's Shibuya Ward backs the second loan, which originally represented about 4.5% of the total initial issuance amount of the trust certificates. "We intend to maintain our 'D (sf)' ratings on the class D to I trust certificates for at least 30 days, and then withdraw our ratings on these classes," according to SP. ORIX-NRL Trust 15 is a multiborrower commercial mortgage-backed securities (CMBS) transaction. Nonrecourse loans and specified bonds ("tokutei shasai") extended to/issued by nine obligors initially secured the trust certificates issued under this transaction. In turn, 33 real estate certificates and real estate properties originally backed the loans and bonds. ORIX Corp. arranged the transaction, and ORIX Asset Management & Loan Services Corp. acts as the servicer. RATINGS LOWERED ORIX-NRL Trust 15 JPY37.8 billion trust certificates due June 2014 Class To From Initial issue amount D D (sf) CCC- (sf) JPY3.0 bil. E D (sf) CCC- (sf) JPY1.3 bil. F D (sf) CCC- (sf) JPY0.4 bil. G D (sf) CCC- (sf) JPY0.4 bil. H D (sf) CCC- (sf) JPY0.2 bil. I D (sf) CCC- (sf) JPY0.2 bil. TOKYO ELECTRIC: Mulls Issuing Bonds Before 2020 ----------------------------------------------- Kyodo News reports that Tokyo Electric Power Co. is considering resuming corporate bond issuance in the latter half of the decade, a source said November 11. The report says the company has not issued corporate bonds since the massive earthquake and tsunami in March 2011 led to the nuclear crisis at its Fukushima No. 1 complex. Tokyo Electric Power Company is the largest electric power company in Japan and the largest privately owned electric utility in the world. TEPCO supplies electricity to meet the increasingly diversified and sophisticated demands of its over 28.09 million customers in the metropolitan Tokyo, which is the political, economic, and cultural center of Japan, and eight surrounding prefectures. Bloomberg News said the utility is battling radiation leaks at the Fukushima Dai-Ichi power plant north of Tokyo after a March 11 earthquake and tsunami knocked out its cooling systems, causing the biggest atomic accident in 25 years. More than 50,000 households were forced to evacuate and Bank of America Corp.'s Merrill Lynch estimates TEPCO may face compensation claims of as much as JPY11 trillion (US$135 billion). As reported in the Troubled Company Reporter-Asia Pacific on May 11, 2012, Bloomberg News said Japan's government took control of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as part of the nation's largest bailout since the rescue of the banking industry in the 1990s. Bloomberg related that the government will obtain more than 50% of the voting rights in the utility under a 10-year plan approved on May 8 by Trade and Industry Minister Yukio Edano. The government stake may rise to two-thirds if TEPCO fails to meet goals that include cost cuts and compensation payments, said Bloomberg. Under the plan, Bloomberg disclosed, the utility aims for an unconsolidated profit of JPY106.7 billion in the year ending March 2014, based on an electricity rate increase and the restart of the Kashiwazaki Kariwa nuclear station. Bloomberg says nationalization of TEPCO paves the way for the government to restructure the electricity industry monopolized by regional utilities and possibly break up power generation and transmission networks to allow more competition. ==================== N E W Z E A L A N D ==================== BLACKTOP CONSTRUCTION: Owes NZ34MM to Creditors, Receiver Reveals ----------------------------------------------------------------- Hamish Fletcher at The New Zealand Herald reports that Blacktop Construction Limited, an Auckland roading group that collapsed only days after winning an industry award, has debts of NZ$34 million, according to receivers. Only NZ$4.4 million of assets have been realised to meet these debts to date, said the receivers who posted their first reports to the Companies Office this week, the Herald relates. The Herald notes that most of Blacktop Construction's 70 staff are no longer employed by the company, while some have been retained to help with parts of the receivership. According to the report, one of the receivers, Brian Mayo-Smith of BDO, said in the report that Blacktop had "experienced increasing financial difficulties over recent years due to declining revenue and reduced contract margins". "Despite restructuring attempts including inter alia expansion into Pacific Island contracting, significant trading losses continued to be incurred in the months prior to receivership," the report quotes Mr. Mayo-Smith as saying. "The losses resulted in a substantial financial deficit which could not be funded by shareholders or other means." Since being appointed, Mr. Mayo-Smith said the receivers had determined it was not viable for the New Zealand operations to keep trading, the Herald relates. The Herald adds that the receivers said the company had assets with a book value of NZ$11.6 million, based on accounts as at September 4. A related company also in receivership, Asphalt Products, has assets with a book value of NZ$481,000 while another, Delta Corporation, has assets worth NZ$10.6 million. To date, only around NZ$4.4 million of assets from the group of companies had been realized, the report discloses. Blacktop, Asphalt and Delta Corporation's debt is around NZ$34 million, Mr. Mayo-Smith confirmed to the Herald. About Blacktop Construction Blacktop Construction Limited operated as a specialist road maintenance contractor providing services to New Zealand based projects and in recent years the Pacific Islands. Brian Mayo-Smith -- brian.mayo-smith@bdo.co.nz --, Andrew Bethell -- andrew.bethell@bdo.co.nz -- and James Greenway -- james.greenway@bdo.co.nz -- were appointed joint and several receivers and managers of Blacktop Construction Limited on Sept. 4, 2013, and Asphalt Products Limited and Roadsafe Limited on Sept. 5, 2013. The receivers said Blacktop had experienced increasing financial difficulties over recent years due to declining revenue and reduced contract margins. Despite restructuring attempts including inter alia expansion into Pacific Island contracting, significant trading losses continued to be incurred in the months prior to receivership. The losses resulted in a substantial financial deficit which could not be funded by shareholders or other means. The Company was unable to pay creditors as they fell due resulting in ongoing supplies including work required from subcontractors being interrupted. PIKE RIVER: Government Should Force Firm to Pay Compensation ------------------------------------------------------------ NZN reports that the government should force the company that owned the Pike River mine to pay compensation to the families of the 29 men who were killed in the November 2010 underground explosions, Labour said. In July a judge ordered the company, which was in receivership, to pay the families NZ$110,000 each and fined it NZ$760,000, NZN recalls. NZN relates that the receivers said it didn't have the money to pay the fine and gave the families NZ$5,000 each. Last month its parent company, NZ Oil and Gas, held its annual meeting and shareholders overwhelmingly voted against paying the compensation, NZN notes. According to the report, Labour leader David Cunliffe said ACC and the NZ Superannuation Fund were major Pike River Coal shareholders. "Prime Minister John Key should pressure those government entities to pay compensation . . . he should also call all the significant Pike River Coal shareholders and tell them in no uncertain terms to fulfil their moral obligations," the report quotes Mr. Cunliffe as saying. Mr. Cunliffe questioned Mr. Key in parliament on November 12, saying the mine's owners received an NZ$80 million insurance payout, NZN relays. Mr. Key said the Government had honoured all its legal obligations. "The Government is also a guardian of taxpayers' money, and it would need to be very careful about any precedent it might set," Mr. Cunliffe, as cited by NZN, said. "There are plenty of New Zealand companies that go broke and don't pay redundancy payments owed to workers." About Pike River Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is a New Zealand-based coal mining company. The Company, along with its subsidiaries, is primarily engaged in the exploration, evaluation, development and production of coal. It operates a coal mine that lies under the Paparoa Ranges. Pike River Coal Ltd was placed into receivership in December 2010 after 29 miners died in a series of explosions on Nov. 19, 2010. New Zealand Oil & Gas, the company's largest shareholder, appointed accountants PricewaterhouseCoopers as receivers. The company owed NZ$80 million to secured creditors BNZ and NZ Oil & Gas. Pike River Coal also owed another estimated NZ$10 million to NZ$15 million to contractors, including some of the men who lost their lives in the disaster. Bloomberg notes that Pike River Coal was found guilty in April this year of nine breaches of health and safety laws including those relating to ventilation and methane management. A New Zealand court awarded victims compensation of about NZ$110,000 each in July, adding that as the company was in receivership it may be unable to make that payment, Bloomberg adds. REYNOLDS GROUP: Moody's Affirms 'B3' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service assigned a Caa2 rating to Reynold's proposed senior unsecured notes and affirmed the company's B3 Corporate Family, B3-PD Probability of Default, and all other instrument ratings. The ratings outlook is stable. The proceeds of the $650 million senior unsecured notes due December 15, 2016 will be used to refinance the existing EUR480 million 8.000% senior unsecured notes due December 15, 2016. Moody's took the following actions: Reynolds Group Holdings Limited -- Affirmed B3 corporate family rating -- Affirmed B3-PD probability of default rating Beverage Packaging Holdings (Luxembourg) II S.A. -- Affirmed EUR480 million 8.000% senior unsecured notes due 12/15/2016, Caa2 (LGD 5, 79%) (to be withdrawn at the close of the transaction) -- Affirmed senior subordinated notes, Caa2 (LGD6, 96%) Beverage Packaging Holdings (Luxembourg) II S.A. and Beverage Packaging Holdings II Issuer Inc. (USA) -- Assigned $650 million senior unsecured notes due 12/15/2016, Caa2 (LGD 5, 79%) Reynolds Group Holdings Inc. -- Affirmed senior secured credit facilities, B1 (LGD2, 25%) Reynolds Group Issuer Inc., Reynolds Group Issuer LLC, Reynolds Group Issuer (Luxembourg) S.A. -- Affirmed senior secured notes, B1 (LGD2, 25%) -- Affirmed senior unsecured notes, Caa2 (LGD5, 79%) Pactiv Corporation -- Affirmed senior unsecured notes, Caa2 (LGD6, 93%) The rating outlook is stable. All ratings are subject to the receipt and review of the final documentation. Ratings Rationale: The B3 corporate family rating reflects RGHL's weak credit metrics, concentration of sales within certain segments and acquisitiveness/financial aggressiveness. The rating also reflects the competitive and fragmented market and the company's mixed contract and cost pass-through position. RGHL has comparatively limited transparency, a complex capital and organizational structure and is owned by a single individual. Strengths in the company's profile include its strong brands and market positions in certain segments, scale and high percentage of blue-chip customers. There are high switching costs for customers in certain segments as well as a history of innovation. Many of RGHL's businesses had a history of strong execution and innovation prior to their acquisition and much of the existing management teams were retained. Scale, as measured by revenue, is significant for the industry and helps RGHL lower its raw material costs. The company also has high exposure to food and beverage packaging. RGHL currently has adequate liquidity with approximately $1.3 billion in cash on hand as of June 30, 2013. The ratings could be downgraded if there is deterioration in credit metrics, liquidity or the competitive and operating environment. The ratings could also be downgraded if the company undertakes any significant acquisition. Specifically, the ratings could be downgraded if debt to EBITDA increases to above 7.0 times, EBIT to interest expense declined below 1.0 time, and free cash flow to debt remained below 1.0%. The rating could be upgraded if RGHL sustainably improves its credit metrics within the context of a stable operating and competitive environment while maintaining adequate liquidity including ample cushion under financial covenants. Specifically, RGHL would need to improve debt to EBITDA to below 6.3 times, EBIT to interest expense to at least 1.4 times and free cash flow to debt to above 3.5% while maintaining the EBIT margin in the high single digits. REYNOLDS GROUP: S&P Rates $650MM Sr. Unsecured Notes 'CCC+' ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' issue-level rating and '6' recovery rating to New Zealand-based packaging producer Reynolds Group Holdings Ltd.'s proposed $650 million senior unsecured notes due December 2016. The notes will be issued by Beverage Packaging Holdings (Luxembourg) II S.A. and Beverage Packaging Holdings II Issuer Inc. The '6' recovery rating indicates expectations for negligible (0% to 10%) recovery in the event of a default. Reynolds will use proceeds of the notes offering to repay the existing 8% senior notes due 2016. "Our 'B' corporate credit rating and other ratings on Reynolds are unchanged. The outlook is stable. The company is also in the process of amending and extending its revolving credit facilities which form a part of its senior secured credit facilities." "Standard & Poor's Ratings Services' ratings on Reynolds reflect our assessment of the company's business risk profile as strong and the financial risk profile as highly leveraged. Reynolds is a market leading provider of food and beverage packaging owned by Rank Group, a New Zealand-based investment firm controlled by a single individual. The company is one of the world's leading and most-diversified consumer and foodservice packaging providers, with annual revenues of nearly $14 billion, pro forma for the September 2011 acquisition of Graham Packaging Holdings Co. for $4.5 billion. "We expect credit measures to strengthen to the appropriate 6.5x we consider consistent with the rating." "For the latest corporate credit rating rationale, see Standard & Poor's summary analysis on Reynolds Group Holdings Ltd. published on May 13, 2013." RATINGS LIST Reynolds Group Holdings Ltd. Corporate Credit Rating B/Stable/-- New Rating Beverage Packaging Holdings (Luxembourg) II S.A. Beverage Packaging Holdings II Issuer Inc. $650 Mil. Senior Unsec. Notes Due 2016 CCC+ Recovery Rating 6 ===================== P H I L I P P I N E S ===================== BAYAN TELECOM: PLDT Blocks Globe Telecom's Takeover of Bayantel --------------------------------------------------------------- Miguel R. Camus at the Philippine Daily Inquirer reports that Philippine Long Distance Telephone Co. (PLDT) is blocking rival Globe Telecom Inc.'s takeover of Bayan Telecommunications Inc., as it formally filed its opposition with the National Telecommunications Commission, officials from both companies said. The Inquirer says Globe, which is in the process of converting Bayantel's debt to equity, which would give it a controlling stake in the telco established by the Lopez family, still needs the NTC's approval as the move would result in a change in ownership. According to the report, Froilan Castelo, head of Globe corporate and legal services group, said the plan was being challenged by the PLDT. "We have only one opposition to the petition, which is that of PLDT [Last Nov. 4]," Mr. Castelo told reporters in a recent interview, the Inquirer relates. The Inquirer reports that PLDT public affairs group head Ramon Isberto on November 12 confirmed that the company was opposing the deal, noting that the filing was an extension of an earlier position it took against Globe and Bayantel's joint use of frequencies. The report says PLDT unit Smart Communications at the time said that frequencies in question should have been recalled by NTC and auctioned, as these were not being used by Bayantel. But the NTC allowed the sharing arrangement, saying this would ease network congestion and translate to better quality of services, the report notes. Mr. Castelo said Globe was given until November 15 to respond to PLDT's opposition, the Inquirer adds. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 12, 2013, the Inquirer recalled that the Pasig regional trial court has earlier issued a resolution approving the debt- restructuring plan and the new master restructuring agreement submitted by Globe, Bayantel and Bayan Telecommunications Holdings Corp. Under the plan, Globe would acquire a 56.6-percent stake in Bayantel through the conversion of 69 percent of Bayantel's total debt. Bayantel noted that the new restructuring program would make it immediately "productive" unlike under the original plan where creditors would have to wait until 2023 to get paid. The Globe debt initiative would pare down the outstanding principal debt of Bayantel by 69 percent to $131.3 million from $423.3 million. Bayantel's outstanding debt stood at $497 million when it was placed under corporate rehabilitation in 2004, the Inquirer disclosed. About Bayantel Bayan Telecommunications Holdings Corporation, which is 85.4% owned by Benpres Holdings Corp. and the Lopez Group, was incorporated on October 15, 1993. Bayan Telecommunications Inc. -- http://www.bayantel.com.ph/-- is the operating arm of BTHC and is formerly known as International Communications Corporation. BayanTel is a telecommunications company offering an extensive breadth of traditional links and circuitry as well as cutting edge data and voice applications. BayanTel's existing service areas in Metro Manila and Bicol, as well as its local exchange service areas in the Visayas and Mindanao regions combined, cover a population of over 25 million, nearly 33% of the population of the Philippines. BayanTel has operations in Japan and the U.K. In a report on Aug. 15, 2007, the Philippine Star said BayanTel was setting aside PHP760 million to PHP800 million in 2007 to pay down debt, using internally-generated cash. BayanTel was placed into receivership in 2004. Weighed down by its huge debt, the company sought corporate rehabilitation with the Pasig City Regional Trial Court in July 2003 to restructure its short-and long-term bank loans and bonds payable. The Pasig Regional Trial Court Branch 158 approved the company's financial rehabilitation on June 28, 2004, based on sustainable debt level of PHP17.13 billion, payable over 19 years. According to RTC Judge Rodolfo R. Bonifacio, the remainder of BayanTel's debt may be converted to another appropriate instrument that will not be a financial burden to parent Benpres Holdings Corp. It also mandated BayanTel to treat all creditors equally. Some of BayanTel's creditors have appealed the lower court decision. LEHMAN BROTHERS: Shareholders' Final Meeting Set for Nov. 25 ------------------------------------------------------------ The shareholders of Lehman Brothers Philippine Investments I Limited will hold their final general meeting on Nov. 25, 2013, at 12:00 noon to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Christopher Smith Krys Global VL Services Limited Governor's Square, Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 21237 Grand Cayman KY1-1205 Cayman Islands Tel: +1 345 947 4700 Fax: +1 345 946 6728 E-mail: Christopher.Smith@KRyS-Global.com ********* 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 ***