/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/131119.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 Tuesday, November 19, 2013, Vol. 16, No. 229 Headlines A U S T R A L I A ACP FISHING: Clifton Hall Appointed as Liquidators ELDERS LTD: Directors Raise Going Concern Doubt FORTESCUE METALS: Moody's Ups Corporate Family Rating to 'Ba2' FREEDOM SYSTEMS: Creditors' Meeting Set For November 26 KENSINGTON CLAPTON: Clifton Hall Appointed as Liquidators KITSET KITCHENS: Placed in Liquidation, Customers Lose Deposits MIRABELA NICKEL: S&P Lowers Corporate Credit Rating to 'D' C H I N A CHINA SOUTH CITY: S&P Revises Outlook to Pos. & Affirms 'B+' CCR SUNTECH POWER: Factories to Keep Operating as Sale Deal Approved I N D I A AHUJA OVERSEAS: CARE Reaffirms 'B+' Rating on INR0.41cr Loans AJEET & COMPANY: CARE Reaffirms 'BB' Rating on INR11cr LT Loans AJMERA PHARMASURE: CARE Reaffirms 'BB-' Rating on INR8.2cr Loans ANNEX GLASS: CRISIL Suspends 'D' Ratings on INR190MM Loans B S TAR: CRISIL Reaffirms 'B+' Ratings on INR60MM Loans BALWINDRA TOOLS: CRISIL Cuts Ratings on INR17.5MM Loans to 'B' CHAMELI FLOUR: CRISIL Suspends 'B+' Ratings on INR227.5MM Loans COMFORT HOSPITALITY: CRISIL Reaffirms D Ratings on INR77.3M Loans DYNAMIC (C G): CRISIL Reaffirms 'B+' Ratings on INR540MM Loans GREEN VALLIEY: CRISIL Suspends 'D' Ratings on INR1.55BB Loans HERMAN PROPERTIES: CRISIL Suspends 'B+' Ratings on INR300MM Loans HIM CHEM: CRISIL Reaffirms 'D' Ratings on INR420MM Loans IMPEX METAL: CARE Lowers Ratings on INR291cr Loans to 'BB+' INFANT ENGINEERS: CRISIL Cuts Ratings on INR50MM Loans to 'B' K K P HI TECH: CRISIL Ups Ratings on INR123.4MM Loans to 'BB' K K P TEXTILES: CRISIL Raises Ratings on INR662.3MM Loans to 'BB' K K P WEAVING: CRISIL Ups Ratings on INR129.8MM Loans to 'BB' K.K.P. FINE: CRISIL Upgrades Rating on INR8.2MM Loan to 'BB' KKP SPINNING: CRISIL Raises Ratings on INR579.10MM Loans to 'BB' KARNATAKA VEERASHAIVA: CRISIL Reaffirm BB+ Rating on INR200M Loan KAY KAY: CRISIL Suspends 'BB+' Rating on INR75MM Cash Credit KEDIA CARBON: CRISIL Suspends 'BB+' Rating on INR80MM Cash Credit LAKSHMI CONSTRUCTIONS: CRISIL Suspends 'B' Rating on INR70MM Loan LINUS PROCESSORS: CRISIL Suspends 'B' Rating on INR80MM Loan MA BHAGWATI: CRISIL Suspends 'D' Ratings on INR239MM Loans MAJESTIC EXPORTS: CRISIL Suspends 'D' Ratings on INR168.1MM Loans MERA BABA: CRISIL Suspends 'D' Rating on INR400MM Term Loan METRO PANELS: CRISIL Assigns 'B+' Ratings on INR55MM Loans MRG AUTO: CRISIL Reaffirms 'B' Ratings on INR290MM Loans NAINITAL TARAI: CARE Reaffirms 'BB' Rating on INR9.79cr Loans NAROLA GEMS: CARE Ups Ratings on INR40cr LT Bank Loans From BB+ NAV BHARAT: CRISIL Suspends 'D' Ratings on INR75.3MM Loans NEW MODERN: CRISIL Assigns 'BB-' Ratings to INR280MM Loans NIRMAL PUMPS: CRISIL Suspends 'BB' Ratings on INR96.5MM Loans NOEL PHARMA: CRISIL Suspends 'D' Ratings on INR20MM Loans OTTOMAN INDUSTRIES: CRISIL Suspends 'BB-' Rating on INR150M Loans PADMANABH HEALTHCARE: CRISIL Reaffirms 'B-' Rating on INR68M Loan PAN FUELTECH: CRISIL Suspends 'B-' Ratings on INR70MM Loans PRAGATI AGRI: CARE Rates INR6cr LT Bank Loans at 'BB' RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR80MM Loan RAMOJI GRANITE: CARE Cuts Rating on INR24.53cr Loans to 'BB-' RK AGARWAL: CARE Reaffirms 'BB' Rating on INR14.01cr Loans ROHIT FERRO: CARE Cuts Ratings on INR1,366.23cr Loans to 'BB-' SHREE SHYAM: CARE Assigns 'BB-' Rating to INR5.42cr LT Loans SHRI HARI: CARE Assigns 'B' Rating to INR5.26cr LT Bank Loans SHRINIWAS MACHINE: CRISIL Ups Ratings on INR145MM Loans to 'BB-' SINGAN PROJECTS: CARE Revises Rating on INR20cr Loans to 'B+' SOMA SRINIVAS: CRISIL Rates INR30MM Loan at 'BB-' SURYAUDAY SPINNING: CRISIL Suspends D Ratings on INR308.4MM Loan SVVR EDUCATIONAL: CRISIL Reaffirms 'B-' Rating on INR130M Loan TIRUPATI UDYOG: CRISIL Suspends 'D' Ratings on INR331MM Loans UNITED MARINE: CRISIL Suspends 'D' Ratings on INR99.9MM Loans VIDHATA METAL: CRISIL Suspends 'B' Ratings on INR141MM Loans VOORA PROPERTY: CRISIL Reaffirms 'BB-' Rating on INR365MM Loan J A P A N TOKYO ELECTRIC: Pins Profit on Plant Restarts, Rate Rise N E W Z E A L A N D BLACKTOP CONSTRUCTION: Fulton Hogan to Continue Road Works CHORUS LTD: With Dividend Guidance on Regulatory Uncertainty REYNOLDS GROUP: Moody's Rates Senior Secured Credit Facilities B1 S I N G A P O R E GLOBAL A&T: Moody's Puts B2 Ratings on Review for Downgrade S O U T H K O R E A * SOUTH KOREA: Large Shipping Groups Struggle to Stay Afloat X X X X X X X X * BOND PRICING: For the Week Nov. 11 to Nov. 15, 2013 - - - - - ================= A U S T R A L I A ================= ACP FISHING: Clifton Hall Appointed as Liquidators -------------------------------------------------- Timothy Clifton and Mark Hall of Clifton Hall were appointed as joint and several liquidators of ACP Fishing Charters Pty Ltd on Nov. 15, 2013. ELDERS LTD: Directors Raise Going Concern Doubt ----------------------------------------------- Brian Robins at The Sydney Morning Herald reports that directors of rural merchandiser Elders Ltd. have warned of "material uncertainties" over the group's future if it is unable to divest assets and reduce debt. SMH says the warning came as it disclosed a loss of AUD505.2 million, which has all but wiped out its remaining reserves. Over the past five years, Elder's has lost a combined AUD1,594.2 million, which has left the company with shareholders equity of just AUD46.2 million, little changed from its sharemarket worth of AUD50.1 million at the end of September, when it ruled off its books, according to SMH. At the same time, its gearing ratio stood at 552 per cent, given its borrowing level of AUD295.1 million, the report discloses. "While the total loss for abnormal and non-recurring items is the largest yet, it also marks the near completion of what has been a five year process of rationalisation and restructuring of assets, operations, finances and carrying values," the chairman, Mark Allison said in the annual report, released on November 18, SMH relays. Over the past year, this included selling its auto interests and the near-completion of the forestry divestment program, the report notes. "In addition the carrying value of intangibles relating to the Elders Rural Services businesses have been impaired to modest levels," the report relays. The report says now that the group is once again purely a rural services operator, the focus now is on recapitalising the balance sheet, shareholders were told. Borrowing conditions imposed on the group mean it must "realise certain investments and assets, for which the directors have instituted an orderly divestment process, or to otherwise obtain additional or replacement debt or equity funding," shareholders were told in the latest annual report, SMH relates. According to SMH, several "material uncertainties" were disclosed -- whether it will continue to trade within expectations, whether the asset sale program will be achieved in respect of quantum and timing of sales; and whether debt reduction milestones will be met or be supplanted in whole or in part by alternative capital or funding proposals. "Resolution of these material uncertainties is fundamental to the ability of the Group to pay its debts as and when they become due and payable and to continue as a going concern," Elders, as cited by SMH, said. Elders Limited, formerly Futuris Corporation Limited, -- http://www.elders.com.au/-- is Australia's rural and regional company. The company's businesses consist of Elders Rural Services, Elders Financial Services, Forestry and Automotive. FORTESCUE METALS: Moody's Ups Corporate Family Rating to 'Ba2' -------------------------------------------------------------- Moody's Investors Service has upgraded Fortescue Metals Group Limited's corporate family rating (CFR) to Ba2 from Ba3. At the same time Moody's has upgraded FMG Resources (August 2006) Pty Ltd's senior unsecured notes ratings to Ba3 from B1 and senior secured term loan rating to Baa3 from Ba1. The outlook on all ratings remains positive. The upgrade follows announcement that Fortescue has issued a USD1.0 billion voluntary redemption notice to the trustee of its USD2.04 billion Senior Unsecured Notes due 2015. As part of the announcement, the company also stated that it anticipates retiring the remaining USD1.04 billion of notes in the coming months subject to market conditions. Announcement follows last week's re- pricing and amendment of the USD4.95 billion senior secured term loan facility, which reduces the interest margins and extends the maturity of the facility. Ratings Rationale: "The one-notch upgrade reflects the strengthening in Fortescue's credit profile following the announced progress on its debt reduction strategy and the continued execution on its expansion plans", says Matthew Moore -- a Moody's Vice President and Senior Analyst. "The announced notes redemption and the expectation for further debt repayment over the coming months demonstrates the company's commitment to its debt reduction strategy, which Moody's previously highlighted as a factor leading to improvements in the company's ratings", Moore adds. The upgrade also reflects Fortescue's ongoing success around its expansion activities, which Moody's also previously stated could lead to an upgrade. "Continued improvements in production and cash flow generation combined with announcement accelerates Moody's expectation for improvements in Fortescue's financial metrics", adds Moore. Under Moody's base case assumptions of iron ore prices of around USD110 to USD120 (based on 62% Fe), Moody's now expects Fortescue's debt-to-EBITDA to improve to around 2.0x to 2.5x in fiscal year ending 30 June 2014. "The positive outlook reflects Moody's expectation that Fortescue will continue to execute on its expansion plans and complete the final phase of expansion activities in the first half of the 2014 calendar year" says Moore. "The positive outlook also reflects the company's announced intentions to further reduce debt over the next 12 to 24 months. The announced notes redemption is the first major step in Fortescue's announced intention to reduce its debt levels and improve its gearing levels towards its desired level of 40%. As of FY13, Fortescue's debt-to-capital was around 68%, and Moody's expects the ratio to decline to 55% to 60% in FY14. Fortescue is nearing completion of its massive expansion plans, which has led to a step change in the company's production profile and revenue generation ability. Upon completion, production will increase to around 155mtpa, almost triple the levels achieved in FY12. This drives substantial improvements in the cash flow generation ability and unit costs of production for the company. Moody's expects full year production for FY14 to be around 125 to 130mt, resulting from the completion and ramp up of the Firetail mine at the Solomon Hub in the June 2013 quarter and the expected completion of the Kings mine in early calendar 2014. The notes redemption, combined with the recent term loan re- pricing and amendment, significantly improves Fortescue's near term maturity profile and will reduce interest expense going forward by over USD130 million. The ratings could be upgraded if Fortescue 1) completes its expansion and establishes a track record of producing at the full expanded 155mtpa capacity, 2) continues to execute on its debt reduction plans such that debt-to-EBITDA is maintained below 2.5x and FFO-to-Interest to be maintained above 4.0x on a consistent basis. A key issue for a rating upgrade will be the company's growth intentions post completion of the current phase of its expansion program. The outlook could revert to stable or face negative pressure if the company experiences any unexpected execution challenges with the remaining expansion activities, embarks on any material further expansions, and/or adapts more aggressive shareholder- friendly initiatives, such that credit metrics do not remain in line with Moody's expectations. Iron ore prices sustained materially below Moody's base case assumptions could also lead to negative pressure on the rating or outlook. At the Ba2 rating level, Moody's expects Fortescue to consistently maintain Debt-to-EBITDA below 3.5x and FFO-to-Interest above 3.0x. Fortescue Metals Group Limited based in Perth, is an iron ore producer engaged in the exploration and mining of iron ore for export, mainly to China. Fortescue is Australia's third largest iron ore producer and exporter as well as one of the world's largest producers and sea-borne traders. Fortescue has around 15.6 billion tonnes of iron ore Resources, including 2.2 billion tonnes of reserves, and its tenement holdings span an area of over 85,000 square km in the Pilbara region of Western Australia. For the September 2013 quarter, Fortescue achieved and annual run rate of around 104mtpa of production with production for the month of September at an annualized rate of around 116mt. Moody's expects full year shipments for FY2014 to be around 130mt. FREEDOM SYSTEMS: Creditors' Meeting Set For November 26 ------------------------------------------------------- Timothy Clifton and Mark Hall of Clifton Hall were appointed as joint and several liquidators of Freedom Systems Pty Limited on Nov. 15, 2013. A meeting of creditors will be held at 10:30 a.m. on Nov. 26, 2013, in the offices of Clifton Hall, Level 1, 12 Gilles Street, in Adelaide. KENSINGTON CLAPTON: Clifton Hall Appointed as Liquidators --------------------------------------------------------- Timothy Clifton and Mark Hall of Clifton Hall were appointed as joint and several liquidators of Kensington Clapton Pty. Ltd. on Nov. 15, 2013. A meeting of creditors will be held at 11:00 a.m. on Nov. 26, 2013, in the offices of Clifton Hall, Level 1, 12 Gilles Street, Adelaide. KITSET KITCHENS: Placed in Liquidation, Customers Lose Deposits --------------------------------------------------------------- Madeline Saporito at The Courier reports that Ballarat customers have been left high and dry after Hamilton-based Kitset Kitchens went into liquidation and closed its Ballarat shop. The Courier says Kitset Kitchens employees and customers have joined in voicing their concerns about potential financial losses, after the business went into liquidation earlier this month. The company has closed its Ballarat shopfront and stores in Blackburn, Thornbury, Moorabbin and Hamilton, the report notes. According to the report, one Ballarat resident, who did not wish to be named, was informed of the closure by a family member days after the company's announcement. After spending more than AUD10,000 with Kitset Kitchens on several occasions, the Ballarat customer said she had come to trust the quality and reputation of the business. The Courier relates that the customer has received a phone call from Melbourne-based liquidation firm, Bent and Cougle, which was appointed to the Kitset Kitchens case. "He said there was no way to sweeten it, but we've lost our deposit and we're not getting our kitchen," the customer, as cited by The Courier, said. Some customers will be able to claim their completed kitchens that are now stored in the company's warehouse, the report adds. Bent and Cougle's Hamish MacKinnon -- HMackinnon@bentcougle.com -- said those who had paid deposits would be creditors in the liquidation process, a task that he described as difficult and time-consuming, The Courier reports. Kitset Kitchens is a family-run business founded in 1946. MIRABELA NICKEL: S&P Lowers Corporate Credit Rating to 'D' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on Australian nickel mining company Mirabela Nickel Ltd. to 'D' from 'SD'. The issue rating on the company's US$395 million 8.75% notes remains at 'D', and the recovery rating of '4' remains unchanged. "Today's lowering to 'D' follows Mirabela's announcement that it had entered into standstill agreements with its key creditors that have financing facilities with the company for about US$454 million," Standard & Poor's credit analyst Thomas Jacquot said. "During the 60-day standstill period, Mirabela will not make any payment of interest or principal under its existing debt other than as specified." This downgrade follows S&P's previous lowering of the rating on Mirabela to 'SD' on Oct. 23, 2013, after the company had failed to pay its scheduled interest in that month under its US$395 million notes. Following the missed interest payment, the company had a 30-day grace period that ended yesterday under its notes indenture, to remedy the nonpayment. Mirabela's main creditors -- comprising representatives of the noteholders, Banco Bradesco S.A., and Caterpillar Financial Services Corp. -- have agreed not to enforce any rights they currently have for a period of up to 60 days. During the standstill period, Mirabela intends to restructure its debt, combined with a recapitalization. "In our view, it is highly likely that the debt restructuring would be in the form of a distressed exchange because we believe the company would likely run out of cash by early 2014," said Mr. Jacquot. "During the third quarter of 2013, the company's cash balance reduced by about US$30 million. If the company were to use its cash at a similar rate in the fourth quarter, and given the amounts outstanding under the notes together with a principal payment in January 2014, its cash reserves would likely be depleted by early 2014." ========= C H I N A ========= CHINA SOUTH CITY: S&P Revises Outlook to Pos. & Affirms 'B+' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised the rating outlook on China-based property developer China South City Holdings Ltd. to positive from stable. At the same time, S&P affirmed its 'B+' long-term corporate credit rating and its 'cnBB' long-term Greater China regional scale rating on the company. S&P also affirmed its 'B' long-term issue rating and its 'cnBB-' long- term Greater China regional scale rating on CSC's outstanding senior unsecured notes. "We revised the outlook to positive because we expect CSC's property sales to remain strong over the next 12 months at least, because of better execution, higher geographical diversification, and a stable property market in China," said Standard & Poor's credit analyst Bei Fu. "We also anticipate that the company will be able to sustain its improved financial strength, given that its project diversification has increased. We also expect CSC's cash flow adequacy to remain stable, with stronger sales offsetting higher borrowings." S&P assess CSC's business risk profile as "weak" and its financial risk profile as "aggressive." CSC's contract sales are likely to be significantly higher than the company's full-year budget of Hong Kong dollar (HK$) 11 billion, and S&P's previous base-case expectation of about HK$9.4 billion. This is because the second half of CSC's fiscal year (ending March) is usually the company's peak sales season. CSC's contract sales were HK$5.79 billion in the first half of fiscal 2014 (ending March), year-on-year growth of 202%. S&P expects CSC's improved project diversification and execution in new markets to support its property sales in the next two years. New markets were the largest contributors to the company's sales in the first half of fiscal 2014. "CSC will maintain its profitability at a higher level than peers' because of low land costs and the nature of its low-rise construction," said Ms. Fu. The average cost of CSC's land is much lower than peers' at less than 5% of its average selling price. CSC is able to buy land at lower prices because of the local governments' partnership and support for the development of trade centers. In S&P's view, CSC's improved financial flexibility will strengthen its financial risk profile next year. The company issued HK$975 million convertible notes in April 2013 and drew down a two-year new offshore loan of HK$500 million in October 2013. CSC's appetite for debt-funded expansion remains aggressive, in S&P's opinion, despite the improvement in the company's overall financial performance. Such expansion could require significant capital outlays for development and have long investment horizons. The affirmed ratings also reflect CSC's large capital expenditure per project, liquidity buffer in existing trade center units in Shenzhen, and small but growing recurring property rental income. S&P could raise the rating if CSC continues to demonstrate strong sales execution and increase rental income in new markets while maintaining its financial strength and profit margin over the next 12 months. S&P may revise the outlook to stable if CSC's sales performance is weaker than it expects or the company's expansion is more aggressive than it anticipates, such that EBITDA interest coverage is well below 3x. S&P could also revise the outlook if property sales in fiscal 2014 are well below HK$13 billion. SUNTECH POWER: Factories to Keep Operating as Sale Deal Approved ---------------------------------------------------------------- Wayne Ma at The Wall Street Journal reports that Suntech Power Holdings Co., mired in more than $2.3 billion in debt, would pay back about 30% of what it owes to Chinese creditors in a deal that would also keep its solar-equipment factories humming under new management. The Journal says the move to keep the former operations of China's onetime solar-power champion operating runs counter to Beijing's efforts to rein in industrial overcapacity and is a cautionary tale for overseas investors eager to gain exposure to China's booming economy. U.S. creditors are owed more than $500 million in Suntech convertible bonds but it wasn't clear whether they would recoup their investment, the report says. According to the report, Shunfeng Photovoltaic International Ltd., a smaller rival of Suntech, said November 17 that a court in Suntech's hometown of Wuxi approved Shunfeng's purchase of Suntech's main assets in China. The Journal notes that Suntech once was the world's largest solar- panel maker by sales but has struggled as global overcapacity pushed prices lower. The company defaulted on $541 million in U.S. convertible bonds this year, which put its main Chinese subsidiary into bankruptcy proceedings in China, the report notes. Under the deal, Shunfeng will take over the subsidiary, Wuxi Suntech Power Co., in exchange for repaying a portion of Suntech's Chinese debt, according to the Journal. Although Chinese creditors are owed more than $1.75 billion, they voted last week in favor of the deal, which allows them to recover about 30% of their claims, Shunfeng, as cited by the Journal, said. The Journal relates that Shunfeng said it would pay three billion yuan ($492 million) to Suntech, with the proceeds earmarked for Chinese creditors. Shunfeng said it would kick in an additional CNY10 million for losses incurred by Wuxi Suntech before it was pushed into Chinese bankruptcy. The Wuxi government agreed to be responsible for any claims or losses exceeding that amount, Shunfeng said. The report adds that Shunfeng also pledged to invest an additional CNY3 billion in Wuxi Suntech within two years, some of which will go toward upgrading its factories. Shunfeng said it agreed to pay all of Wuxi Suntech's back taxes, the Journal relays. Shunfeng said the deal would ensure that Wuxi Suntech's three factories, which produce solar cells and solar panels, will keep operating, the Journal reports. About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP) produces solar products for residential, commercial, industrial, and utility applications. With regional headquarters in China, Switzerland, and the United States, and gigawatt-scale manufacturing worldwide, Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech Power Holdings Co., Ltd., received from the trustee of its 3 percent Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. Suntech Power had involuntary Chapter 7 bankruptcy proceedings initiated against it on Oct. 14, 2013 in U.S. Bankruptcy Court in White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by holders of more than $1.5 million of defaulted securities under a 2008 $575 million indenture. The Chapter 7 Petitioners are Trondheim Capital Partners, L.P., Michael Meixler, Longball Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White Plains, New York. ========= I N D I A ========= AHUJA OVERSEAS: CARE Reaffirms 'B+' Rating on INR0.41cr Loans ------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Ahuja Overseas. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 0.41 CARE B+ Reaffirmed Facilities Short-term Bank 7.50 CARE A4 Reaffirmed Facilities The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo change in case of withdrawal of capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The ratings continue to remain constrained on account of the modest scale of operations of Ahuja Overseas in a highly fragmented textile industry and its financial risk profile marked by range bound profitability, highly leveraged capital structure and stressed liquidity position. The ratings are further constrained due to its constitution as a proprietorship concern, susceptibility of its operating margin to the volatile raw material prices and foreign exchange rates and expected lower growth in income in the current financial year owing to the sluggish global environment. The ratings, however, favorably take into account the vast experience of the proprietor of more than two decades along with the established track record of operations of the firm in the garment manufacturing business. Increase in the scale of operations with an improvement in profitability margins and solvency position with effective working capital management are the key rating sensitivities. Jaipur-based, Rajasthan, AOS was formed in April 1986 as a proprietorship concern promoted by Ms Archana Ahuja. AOS is primarily engaged in the business of manufacturing and exports of knitted and embroidered garments for women and home furnishing items like handbags, curtains and pillow covers. It has an installed capacity of producing 960,000 pieces of garments per annum as on March 31, 2013 from its plant located at Jaipur. It has ISO 9001:2000 certified manufacturing processes in place for its 100% Export Oriented Unit (EOU) and supplies its products mainly to the Japan, USA, Argentina, Switzerland and European nations which constitute around 90% of their total exports. It procures the key raw material, ie, grey fabrics from the domestic market, mainly from Surat and Bhiwandi. During FY13 (refers to the period April 1 to March 31), AOS reported a total income of INR22.98 crore (FY12: INR25.26 crore) with a PAT of INR0.59 crore (FY12: INR0.56 crore). AJEET & COMPANY: CARE Reaffirms 'BB' Rating on INR11cr LT Loans --------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Ajeet & Company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 11 CARE BB Reaffirmed Facilities Short-term Bank 4 CARE A4 Reaffirmed Facilities The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Ajeet & Company continue to be constrained by the thin profitability margin, low capitalization, leveraged capital structure, weak debt coverage indicators, susceptibility of the profit margins to volatility in foreign exchange fluctuation and risks related with adverse regulatory changes in the timber exporting countries and constitution of the entity as a partnership firm. The ratings, however, continue to draw strength from the wide experience of the partner's in the timber industry and diversified client base. The ability of AC to increase its scale of operations & profitability amidst the intense competition coupled with improvement in the capital structure would remain the key rating sensitivities. Established in 1950 as a proprietary concern & later converted into a partnership concern, Ajeet & Company is engaged in the business of timber trading wherein it imports (constituted around 80%) teakwood/hardwood from Burma, Southeast Asian countries, African countries and Central & South American countries. The firm earns the entire revenue from the domestic market, wherein it supplies the timber to traders and sawmills. The timber finds large scale use in infrastructure, building construction, interior designing, woodwork, transportation and furniture. During FY13 (refers to the period April 01 to March 31), AC reported a total operating income of INR20.86 crore (growth of around 27% over FY12) and PAT of INR0.09 crore (declined by around 18% over FY12). Furthermore, the firm has achieved total operating income of INR15 crore till September 30, 2013. AJMERA PHARMASURE: CARE Reaffirms 'BB-' Rating on INR8.2cr Loans ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Ajmera Pharmasure Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.20 CARE BB- Reaffirmed Facilities Short-term Bank 1.80 CARE A4 Reaffirmed Facilities Rating Rationale The ratings assigned to the bank facilities of Ajmera Pharmasure Private Limited continue to be constrained by the fluctuating & modest scale of operations, moderate profitability & moderate debt coverage indicators, risk related with supplier concentration, vulnerability of profit margins to volatility in raw material prices and presence in a highly competitive and fragmented industry. The ratings, however, continue to draw strength from the promoter's wide experience in the industry and comfortable capital structure. The ability of AAPL to increase its scale of operations along with an improvement in profitability amidst volatility in the raw material prices while maintaining the capital structure are the key rating sensitivities. Incorporated in 1990, Ajmera Pharmasure Private Limited (APPL) is engaged in the trading of APIs/bulk drugs, vitamins and steroids in the domestic market. The company initially operated as a commission agent for other distributors and later on it started its independent trading operations. APPL is an exclusive agent (for the state of Maharashtra) of IOL Chemicals & Pharmaceuticals Limited (rated CARE BB-/A4), a major manufacturer of organic chemicals, pharmaceutical intermediates and APIs. During FY13 (refers to the period April 1 to March 31), APPL reported a total operating income of INR33.28 crore (grew by around 84% vis-�-vis FY12) & PAT of INR1.48 crore (improved by around 135% vis-a-vis FY12). Furthermore, the company had achieved a total operating income of INR21.97 crore till September 30, 2013. ANNEX GLASS: CRISIL Suspends 'D' Ratings on INR190MM Loans ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Annex Glass Industries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL D Suspended Long-Term Loan 150 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by AGIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AGIPLis yet to provide adequate information to enable CRISIL to assess AGIPL'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' AGIPL was incorporated in 2007 by its current chairman Mr. Parvataneni Bapaiah, his sons Mr. P Krishna Kiran and Mr. P Krishna Kishore, and Mr. Sunkara Anil Kumar. The company manufactures various types of architectural glass such as toughened/tempered glass, heat strengthened glass, insulated glazing glass, laminated glass, designer glass, fire resistant glass, and bullet-resistant glass. It mainly caters to customers in the construction business. AGIPL has a total glass processing capacity of around 1.2 million square meters per annum. The company commenced commercial production in February 2010 B S TAR: CRISIL Reaffirms 'B+' Ratings on INR60MM Loans ------------------------------------------------------- CRISIL's ratings on the bank facilities of B S Tar Pvt Ltd continue to reflect BS Tar's weak financial risk profile, marked by a small net worth and weak debt protection metrics, and its small scale of operations. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the coal tar industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable (Reaffirmed) Letter of Credit 10 CRISIL A4 (Reaffirmed) Standby Line of 5 CRISIL B+/Stable (Reaffirmed) Credit Outlook: Stable CRISIL believes that BS Tar will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if BS Tar's revenues and profitability improve significantly. Conversely, the outlook may be revised to 'Negative' if the company's profitability and revenues decline sharply, or it undertakes a large debt-funded capital expenditure programme. BS Tar was originally set up as a proprietorship firm in 1941; it was reconstituted as a partnership concern, Bhagwandas Sagarmal, in 1983. This firm was again reconstituted as a private limited company with the current name in 1999. Owned by Mr. Santosh Kumar Kedia and his family members, BS Tar is based in Kolkata (West Bengal). The company manufactures coal tar pitch, dehydrated coal tar, and a by-product, creosote oil; it also trades in coal tar. BALWINDRA TOOLS: CRISIL Cuts Ratings on INR17.5MM Loans to 'B' -------------------------------------------------------------- CRISIL has downgraded its long term rating on the bank facilities of Balwindra Tools Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL B+/Stable' while the rating on short term facility has been reaffirmed at CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Export Packing Credit 62.5 CRISIL A4 (Reaffirmed) Term Loan 7.5 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The rating downgrade reflects expected deterioration in BTPL's financial risk profile because of its stretched liquidity. The company's liquidity deteriorated due to deterioration in its working capital management and the capital expenditure (capex) programme undertaken by the company for an additional line of spanners. BTPL's operations are working-capital-intensive, majorly driven by its inventory requirements and credit period provided to its customers. The same deteriorated further in 2012-13 (refers to financial year, April 1 to March 31) with the company's gross current assets increasing to 284 days as on March 31, 2013, from 229 days as on March 31, 2012. Furthermore, there is also pressure on BTPL's liquidity on account of the capex programme undertaken by the company to install machinery for an additional line of spanners. Total cost of the capex is estimated at around INR17.5 million and is funded through a term loan of INR15 million and the rest through internal accruals. With small scale of operations estimated at around INR168.7 million, the accruals are expected to remain low in 2013-14; however, they will be just sufficient to meet term debt obligations. BTPL is expected to generate cash accruals of around INR6.5 million against term debt obligations of around INR4.3 million in 2013-14. The company's stretched liquidity is also reflected in the almost full utilisation of the company's bank limits over the 10 months through October 2013. CRISIL believes that the financial risk profile of the company will remain under pressure over the medium term. The ratings reflect BTPL's weak financial risk profile, marked by high gearing and weak debt protection metrics and small scale of operations in the highly fragmented and competitive industry. This rating weakness is partially offset by the extensive experience of BTPL's promoter and established relationships with customers. Outlook: Stable CRISIL believes that BTPL will continue to benefit from the extensive experience of its promoter and established clientele, over the medium term. The outlook may be revised to 'Positive' in case of an improvement in the company's scale of operations and profitability, resulting in higher-than-expected cash accruals and improvement in financial flexibility by way of infusion of significant capital by the promoter. Conversely, the outlook may be revised to 'Negative' in case of deterioration in BTPL's liquidity on account of stretched working capital or pressure on profitability. BTPL was incorporated in 1980 and is promoted by Mr. Balwindra Singh in Ludhiana (Punjab). The company manufactures hand tools such as spanners, wrenches, bars, L-handles, hammers, hacksaws, vices, carpentry tools, lubricant tools, and garden tools. The company derives a major portion of its revenue from the export market (75 per cent) mainly from the sale of spanners (70 per cent) such as wheel spanners, L-spanners, and cross spanners. The promoters' family has over 50 years of experience in the hand tool manufacturing industry. BTPL reported a profit after tax (PAT) of INR3.1 million on net sales of INR168.7 million for 2012-13, as against a PAT of INR2 million on net sales of INR163.4 million for 2011-12. CHAMELI FLOUR: CRISIL Suspends 'B+' Ratings on INR227.5MM Loans --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Chameli Flour Mills Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6.5 CRISIL A4 Suspended Cash Credit 77.5 CRISIL B+/Stable Suspended Term Loan 150.0 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by CFMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CFMPL is yet to provide adequate information to enable CRISIL to assess CFMPL'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' Based in Indore (Madhya Pradesh), CFMPL processes wheat into flour, maida (refined flour), rawa, and suji. The company has a plant with a 600-tonne-per-day capacity that started commercial production in March 2010. CFMPL was promoted by Mr. Sanjay Agarwal in 2007 and is part of the Agarwal group. Mr. Agarwal has been engaged in the flour mill industry for around 15 years through his other company, Commander Industries Pvt Ltd (rated 'CRISIL BB+/Stable/CRISIL A4+'). COMFORT HOSPITALITY: CRISIL Reaffirms D Ratings on INR77.3M Loans ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Comfort Hospitality Pvt Ltd continue to reflect instances of delay by CHPL in servicing its term debt obligations; the delays have been caused by the company's weak liquidity arising out of low cash accruals. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 30.7 CRISIL D (Reaffirmed) Bank Loan Facility Term Loan 46.6 CRISIL D (Reaffirmed) CHPL operates a single properity hotel with limited diversity and is exposed to risks relating to cyclicality and competition in the hotel industry. These rating weaknesses are partially offset by the company's average financial risk profile, marked by low gearing and location advantage Updates During 2012-13 (refers to the financial year, April 1 to March 31), CHPL has booked modest revenues of INR39.6 million and operating margin of around 27 per cent broadly in line with CRISIL's expectations. CHPL has added to its capacity, adding 21 rooms from January 2013 onwards. CRISIL expects CHPL's turnover to increase at a healthy pace of over 35 per cent over the medium term on the back of capex incurred for expansion of facilities. The company's operating margins are expected to remain around current levels over the medium term. CHPL's financial risk profile remained average, marked by a moderate net worth estimated at INR79 million and low gearing estimated at 1.02 times as on March 31, 2013. The company's interest coverage ratio is also moderate at around 2.8 times. However, the company's debt protection metrics was constrained, as reflected in its weak net cash accruals to total debt (NCATD) ratio of 0.07 times during 2012-13 (refers to financial year, April 1 to March 31) owing to significant debt availed for undertaking the capex and modest accruals. CRISIL expects CHPL's financial risk profile to remain average over the medium term. The company's liquidity remains weak on account of low cash accruals against large debt obligations. The weak liquidity resulted in recent instances of delays in debt repayment by the company. CHPL is expected to generate accruals of INR6 million to INR7 million in 2013-14, inadequate to service debt repayments of INR 14.2 million. CHPL owns a star-rated hotel, Comfort Inn Sunset, in Ahmedabad (Gujarat). The hotel is being run under the franchisee, marketing, and operational agreement with Quality Inns India Pvt Ltd. The hotel has 57 rooms, apart from facilities such as parking, banquets, multi-cuisine restaurant, and a health club. DYNAMIC (C G): CRISIL Reaffirms 'B+' Ratings on INR540MM Loans -------------------------------------------------------------- CRISIL's ratings reflect Dynamic (C G) Equipments Pvt Ltd's below- average financial risk profile marked by its small net-worth, high total outside liabilities to tangible net worth ratio, below- average debt protection metrics, and its working-capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of DEPL's promoter in the commercial vehicle dealership business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60.0 CRISIL B+/Stable Electronic Dealer 480.0 CRISIL B+/Stable Financing Scheme (e-DFS) Outlook: Stable CRISIL believes that DEPL will continue to benefit over the medium term from its promoters' extensive experience in the dealership business. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in DEPL's revenue and profitability margins from the current levels or if there is improvement in its working capital management. Conversely, the outlook may be revised to 'Negative' if there is steep decline in its profitability margins or if there is substantial deterioration in its capital structure on account of larger-than-expected working capital requirements. DEPL is promoted by Mr. Ashwani Mahendru and is an authorised dealer in Chhattisgarh for heavy earth-moving equipment and heavy commercial vehicles, including backhoe loaders, excavators, and car-mounted machines manufactured by JCB India Ltd. GREEN VALLIEY: CRISIL Suspends 'D' Ratings on INR1.55BB Loans ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of of Green Valliey Industries Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 250 CRISIL D Suspended Term Loan 1,300 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by GVIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GVIL is yet to provide adequate information to enable CRISIL to assess GVIL'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' GVIL is a part of the GNG group based in Kolkata (West Bengal) that trades minerals such as iron ore fines, chrome, manganese, and limestone. GVIL manufactures ordinary portland cement (OPC) and portland pozzolana cement (PPC) grade cement in Nongsning Village, Meghalaya. The plant started commercial operations from February 2011 and has total installed capacity of 0.5 million tonnes per annum, including a 12-megawatt DG power set. The total project cost was around INR2520 million, funded through term loan of INR1300 million, promoter's equity of INR580 million, and unsecured loans of INR640 million. HERMAN PROPERTIES: CRISIL Suspends 'B+' Ratings on INR300MM Loans ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Herman Properties Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 50 CRISIL B+/Stable Suspended Term Loan 250 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by HPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HPL is yet to provide adequate information to enable CRISIL to assess HPL'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 1986, HPL is promoted and managed by Mr. K P S Kukreja and Mr. J P S Kukreja. The company has constructed residential, industrial, commercial complexes and schools, with a total developed area of over 0.3 million square feet. It is currently developing residential projects in Kurukshetra (Haryana) and Punjabi Bagh (Delhi). HIM CHEM: CRISIL Reaffirms 'D' Ratings on INR420MM Loans -------------------------------------------------------- CRISIL's ratings on the bank facilities of Him Chem Ltd continues to reflect instances of delay by HCL in servicing its debt; the delays have been caused by HCL's weak liquidity arising out of depressed cash accruals. HCL's accruals have remained depressed on account of operating losses incurred because of low average realisations and increase in raw material prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL D (Reaffirmed) Cash Credit 180.9 CRISIL D (Reaffirmed) Letter of Credit 13.0 CRISIL D (Reaffirmed) Term Loan 139.1 CRISIL D (Reaffirmed) Funded Interest 34.8 CRISIL D (Reaffirmed) Term Loan Working Capital 39.7 CRISIL D(Reaffirmed) Term Loan Moreover, HCL has a weak financial risk profile, marked by high gearing and weak debt protection metrics, and its business risk profile is constrained by its modest scale of operations and susceptibility to volatility in raw material prices. These weaknesses are partially offset by the extensive industry experience of its promoters of more than 20 years. Update HCL's operating income was estimated to have declined to around INR1.10 billion in 2012-13 (refers to financial year, April 1 to March 31) from INR1.14 billion in 2011-12. This was on account of fluctuation in yarn prices and also because its newly set up fabric unit was not optimally utilised. The company recorded losses at the operating levels during 2012-13 on account of sharp increase in raw material prices, which it was not able to pass on to its customers. The operating margin is expected to improve marginally during 2013-14 as fabric sales generate comparatively higher margins. HCL has a weak financial risk profile, marked by high gearing and small net worth of 11.83 times and INR39.5 million as on March 31, 2013. Net loss during the year has resulted in depressed debt protection metrics with net cash accruals to total debt (NCATD) and interest coverage ratios being negative as on March 31, 2013. The company's liquidity is weak and expected to remain weak over the medium term, with cash accruals estimated to be insufficient to repay its maturing debt obligations. Incorporated in 1975, HCL has a facility to manufacture polyester yarn in Solan (Himachal Pradesh). HCL primarily manufactures full- drawn yarn and partially oriented yarn, both of which accounted for 50 per cent of its operating income in the past. From 2012-13, it has also started manufacturing polyester fabric. HCL reported a net loss of INR107.9 million on operating income of INR1.10 billion for 2012-13, as against a net loss of INR20.9 on operating income of INR1.14 billion for 2011-12. IMPEX METAL: CARE Lowers Ratings on INR291cr Loans to 'BB+' ------------------------------------------------------------ CARE revises the rating assigned to the bank facilities of Impex Metal and Ferro Alloys Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 81.00 CARE BB+ Revised from Facilities CARE BBB- (Term Loan) Long-term Bank 40.00 CARE BB+ Revised from Facilities CARE BBB- (Fund based) Long-term/Short- 125.00 CARE BB+/A4 Revised from term Bank CARE BBB-/A3 Facilities (Fund Based) Long-term/Short- 45.00 CARE BB+/A4 Revised from term Bank CARE BBB-/A3 Facilities (Fund Based) Short-term Bank 165.18 CARE A4 Revised from Facilities CARE A3 (Non-Fund Based) Rating Rationale The revision in the rating of Impex Metal and Ferro Alloys Limited (IMFL) takes into consideration its significant deterioration in financial performance in FY13 (refers to the period April 1 to March 31), high gearing and weak debt protection metrics. The ratings are constrained by its engagement in low margin trading business, foreign exchange fluctuation risk pertaining to imports, inventory carrying risk due to bulk import and complete dependence of ferro alloys industry on the cyclical steel sector. However, the ratings derive strength from IMFL's experienced promoters, long track record coupled with reputed clientele and its ability to access quality raw materials from reputed international and domestic suppliers. The ability of the company to improve its profitability margin by leveraging on its manufacturing division while deleveraging its capital structure remains the key rating sensitivity. Incorporated in 1991, Impex Metal & Ferro Alloys Limited (IMFL) is established by Mr Suresh Kumar Patni and belongs to SKP Group of Kolkata. IMFL is engaged into trading of ferro alloys, minerals and metals. The company commenced manufacturing of Ferro Silicone and Silico Manganese at Vizianagaram (Andhra Pradesh) since June, 2012. During FY13, IMFL reported a net loss of INR21 crore on a total operating income of INR965.75 crore. INFANT ENGINEERS: CRISIL Cuts Ratings on INR50MM Loans to 'B' ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Infant Engineers Private Limited to 'CRISIL B/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 17 CRISIL B/Stable (Downgraded from 'CRISIL BB-/Stable') Working Capital 6 CRISIL B/Stable (Downgraded Term Loan from 'CRISIL BB-/Stable') Long-Term Loan 27 CRISIL B/Stable (Downgraded from 'CRISIL BB-/Stable') The rating downgrade reflects deterioration in IEPL's credit risk profile on account of subdued revenue growth. IEPL, reported revenue of around INR183.6 million for 2012-13 (refers to financial year, April 1 to March 31), which was lower than CRISIL's expectations. The downgrade also reflects IEPL's lower- than-expected accruals for 2012-13 amid pressure on its sales. During 2013-14, IEPL's cash accruals are expected to remain stretched to meet its maturing term debt obligations of around INR13.8 million and the company is expected to remain dependent on need-based fund support from the promoters to meet its maturing debt obligations. OEPL's gearing at 2.73 times as on March 31, 2013, was significantly higher than CRISIL's expectation on account of the company contracting incremental debt for funding its working capital requirements. The bank limits utilisation was high at 98 percent over the past twelve months ended September 30, 2013. The rating reflects IEPL's below-average financial profile marked by high gearing and below average debt protection metrics, its modest scale of operations and concentration in its revenue profile. These rating weakness are partially offset by IEPL's established track record in the auto ancillary industry aided by the extensive industry experience of its promoters. For 2012-13 (refers to financial year, April 1 to March 31), IEPL reported, a PAT of INR2.49 million on net sales of INR183.64 million, against a PAT of INR6.79 million on net sales of INR183.28 million for 2011-12. Outlook: Stable CRISIL believes that IEPL will continue to benefit over the medium term from the extensive industry experience of its promoters and its healthy relationship with key customers. The outlook may be revised to 'Positive' if the company diversifies its revenue profile resulting in a sustained increase in scale of operations and profitability, there by leading to an improvement in its financial profile. Conversely, the outlook may be revised to 'Negative' if the company's relationship with its key customers deteriorates resulting in decline in revenues and profitability or if it undertakes a 'larger-than-expected' debt funded capex leading to deterioration in its financial profile. Established in 1989 as a partnership entity, and based in Sriperumbudur (Tamil Nadu) Infant Engineers Pvt. Ltd (IEPL) is involved in the manufacturing of machined parts for brake systems, fuel transmission and injection sub-assemblies, suspension and shock absorbers, engine sub-parts and wiper sub- assemblies used in the automotive industry. IEPL was later converted into a private limited company during the year 2000. The promoters Mr.R.Rajagopalan and Mr.S.Rajasekaran have a long standing experience of around 3 decades in the auto ancillary manufacturing industry. K K P HI TECH: CRISIL Ups Ratings on INR123.4MM Loans to 'BB' ------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of K K P Hi Tech Weaving India Private Limited (KKP Hi Tech; part of the KKP group) to 'CRISIL BB/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Long-Term Loan 39 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Proposed Long-Term 34.4 CRISIL BB/Stable (Upgraded Bank Loan Facility from 'CRISIL B+/Stable') The rating upgrade reflects CRISIL's belief that the KKP group will sustain the improvement in its financial risk profile and liquidity, backed by improved cash accruals and absence of significant debt funded capex plans. The group reported operating margins of 13.9 per cent on operating revenues of Rs 4.13 billion for 2012-13; the performance is expected to remain healthy over the medium term as well. The group's interest coverage ratio and NCATD have improved to 1.92 and 0.13 times respectively in 2012-13 from 1.97 and 0.12 times respectively in 2011-12. The group's liquidity profile is healthy with net cash accruals of INR 300 million to INR400 million per annum against term debt repayment obligations of INR120 million to INR140 million per annum. However, the bank limits continue to be extensively used. The group is expected to sustain the improvement in its liquidity and financial risk profiles over the medium term as well on the back of the expected healthy operating performance and the absence of significant capex plans over the medium term. The ratings reflect the KKP group's below-average financial risk profile, marked by high gearing and average debt protection metrics, and susceptibility to volatility in raw material prices and intense competition in the textile industry. These weaknesses are partially offset by the KKP group's established position in the industry and its integrated operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KKP Hi Tech, KKP Fine Linen Pvt Ltd (KKP Fine Linen), KKP Textiles Ltd (KKP Textiles), KKP Spinning Mills Ltd (KKP Spinning Mills), and KKP Weaving and Processing Mills Ltd (KKP Weaving), collectively referred to as the KKP group. This is because all the companies are in the same line of business and share the same management. Also, the companies are interdependent and have inter-company commercial transactions and a centralised system for procurement of raw materials and marketing arrangements. Outlook: Stable CRISIL believes that the KKP group will continue to maintain its established track record in the textile industry and benefit from its long-standing relationships with customers over the medium term. The outlook may be revised to 'Positive' if healthy profitability and cash accruals lead to an improvement in the KKP group's capital structure. Conversely, the outlook may be revised to 'Negative' if the KKP group's cash accruals decline sharply, adversely affecting its debt servicing ability, or if it contracts a large debt to fund capital expenditure. Based in Namakkal (Tamil Nadu), the KKP group manufactures cotton yarn, grey and dyed fabric, and home textiles. The group was set up by Mr. K Periyasamy, father of Mr. P Nallathambi, who is the present chairman. K K P TEXTILES: CRISIL Raises Ratings on INR662.3MM Loans to 'BB' ----------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of K K P Textiles Limited (KKP Textiles; part of the KKP group) to 'CRISIL BB/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 425 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Foreign Bill Discounting 100 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Letter of Credit 60 CRISIL A4+ (Upgraded from 'CRISIL A4') Long-Term Loan 137.3 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') The rating upgrade reflects CRISIL's belief that the KKP group will sustain the improvement in its financial risk profile and liquidity, backed by improved cash accruals and absence of significant debt funded capex plans. The group reported operating margins of 13.9 per cent on operating revenues of Rs 4.13 billion for 2012-13; the performance is expected to remain healthy over the medium term as well. The group's interest coverage ratio and NCATD have improved to 1.92 and 0.13 times respectively in 2012-13 from 1.97 and 0.12 times respectively in 2011-12. The group's liquidity profile is healthy with net cash accruals of INR 300 million to INR400 million per annum against term debt repayment obligations of INR120 million to INR140 million per annum. However, the bank limits continue to be extensively used. The group is expected to sustain the improvement in its liquidity and financial risk profiles over the medium term as well on the back of the expected healthy operating performance and the absence of significant capex plans over the medium term. The ratings reflect the KKP group's below-average financial risk profile, marked by high gearing and average debt protection metrics, and susceptibility to volatility in raw material prices and intense competition in the textile industry. These weaknesses are partially offset by the KKP group's established position in the industry and its integrated operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KKP Textiles, KKP Fine Linen Pvt Ltd (KKP Fine Linen), KKP Hi Tech Weaving India Private Limited (KKP Hi Tech), KKP Spinning Mills Ltd (KKP Spinning Mills), and KKP Weaving and Processing Mills Ltd (KKP Weaving), collectively referred to as the KKP group. This is because all the companies are in the same line of business and share the same management. Also, the companies are interdependent and have inter-company commercial transactions and a centralised system for procurement of raw materials and marketing arrangements. Outlook: Stable CRISIL believes that the KKP group will continue to maintain its established track record in the textile industry and benefit from its long-standing relationships with customers over the medium term. The outlook may be revised to 'Positive' if healthy profitability and cash accruals lead to an improvement in the KKP group's capital structure. Conversely, the outlook may be revised to 'Negative' if the KKP group's cash accruals decline sharply, adversely affecting its debt servicing ability, or if it contracts a large debt to fund capital expenditure. Based in Namakkal (Tamil Nadu), the KKP group manufactures cotton yarn, grey and dyed fabric, and home textiles. The group was set up by Mr. K Periyasamy, father of Mr. P Nallathambi, who is the present chairman. K K P WEAVING: CRISIL Ups Ratings on INR129.8MM Loans to 'BB' ------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of K K P Weaving and Processing Mills Limited (part of the KKP group) to 'CRISIL BB/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 109 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Foreign Letter 20.6 CRISIL BB/Stable (Upgraded of Credit from 'CRISIL B+/Stable') Proposed Long-Term 0.2 CRISIL BB/Stable (Upgraded Bank Loan Facility from 'CRISIL B+/Stable') The rating upgrade reflects CRISIL's belief that the KKP group will sustain the improvement in its financial risk profile and liquidity, backed by improved cash accruals and absence of significant debt funded capex plans. The group reported operating margins of 13.9 per cent on operating revenues of Rs 4.13 billion for 2012-13; the performance is expected to remain healthy over the medium term as well. The group's interest coverage ratio and NCATD have improved to 1.92 and 0.13 times respectively in 2012-13 from 1.97 and 0.12 times respectively in 2011-12. The group's liquidity profile is healthy with net cash accruals of INR 300 million to INR400 million per annum against term debt repayment obligations of INR120 million to INR140 million per annum. However, the bank limits continue to be extensively used. The group is expected to sustain the improvement in its liquidity and financial risk profiles over the medium term as well on the back of the expected healthy operating performance and the absence of significant capex plans over the medium term. The ratings reflect the KKP group's below-average financial risk profile, marked by high gearing and average debt protection metrics, and susceptibility to volatility in raw material prices and intense competition in the textile industry. These weaknesses are partially offset by the KKP group's established position in the industry and its integrated operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KKP Weaving, KKP Fine Linen Pvt Ltd (KKP Fine Linen), KKP Textiles Ltd (KKP Textiles), KKP Spinning Mills Ltd (KKP Spinning Mills), and KKP Hi Tech Weaving India Private Limited (KKP Hi Tech), collectively referred to as the KKP group. This is because all the companies are in the same line of business and share the same management. Also, the companies are interdependent and have inter-company commercial transactions and a centralised system for procurement of raw materials and marketing arrangements. Outlook: Stable CRISIL believes that the KKP group will continue to maintain its established track record in the textile industry and benefit from its long-standing relationships with customers over the medium term. The outlook may be revised to 'Positive' if healthy profitability and cash accruals lead to an improvement in the KKP group's capital structure. Conversely, the outlook may be revised to 'Negative' if the KKP group's cash accruals decline sharply, adversely affecting its debt servicing ability, or if it contracts a large debt to fund capital expenditure. Based in Namakkal (Tamil Nadu), the KKP group manufactures cotton yarn, grey and dyed fabric, and home textiles. The group was set up by Mr. K Periyasamy, father of Mr. P Nallathambi, who is the present chairman. K.K.P. FINE: CRISIL Upgrades Rating on INR8.2MM Loan to 'BB' ------------------------------------------------------------ CRISIL has upgraded its ratings on the bank facilities of K.K.P. Fine Linen Private Limited (part of the KKP group) to 'CRISIL BB/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 30 CRISIL A4+ (Upgraded from 'CRISIL A4') Long-Term Loan 8.2 CRISIL BB/Stable (Upgraded from 'CRISIL A4') Packing Credit in 125.0 CRISIL A4+ (Upgraded from Foreign Currency 'CRISIL A4') The rating upgrade reflects CRISIL's belief that the KKP group will sustain the improvement in its financial risk profile and liquidity, backed by improved cash accruals and absence of significant debt funded capex plans. The group reported operating margins of 13.9 per cent on operating revenues of Rs 4.13 billion for 2012-13; the performance is expected to remain healthy over the medium term as well. The group's interest coverage ratio and NCATD have improved to 1.92 and 0.13 times respectively in 2012-13 from 1.97 and 0.12 times respectively in 2011-12. The group's liquidity profile is healthy with net cash accruals of INR 300 million to INR400 million per annum against term debt repayment obligations of INR120 million to INR140 million per annum. However, the bank limits continue to be extensively used. The group is expected to sustain the improvement in its liquidity and financial risk profiles over the medium term as well on the back of the expected healthy operating performance and the absence of significant capex plans over the medium term. The ratings reflect the KKP group's below-average financial risk profile, marked by high gearing and average debt protection metrics, and susceptibility to volatility in raw material prices and intense competition in the textile industry. These weaknesses are partially offset by the KKP group's established position in the industry and its integrated operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KKP Fine Linen, KKP Hi Tech Weaving India Private Limited (KKP Hi Tech), KKP Textiles Ltd (KKP Textiles), KKP Spinning Mills Ltd (KKP Spinning Mills), and KKP Weaving and Processing Mills Ltd (KKP Weaving), collectively referred to as the KKP group. This is because all the companies are in the same line of business and share the same management. Also, the companies are interdependent and have inter-company commercial transactions and a centralised system for procurement of raw materials and marketing arrangements. Outlook: Stable CRISIL believes that the KKP group will continue to maintain its established track record in the textile industry and benefit from its long-standing relationships with customers over the medium term. The outlook may be revised to 'Positive' if healthy profitability and cash accruals lead to an improvement in the KKP group's capital structure. Conversely, the outlook may be revised to 'Negative' if the KKP group's cash accruals decline sharply, adversely affecting its debt servicing ability, or if it contracts a large debt to fund capital expenditure. Based in Namakkal (Tamil Nadu), the KKP group manufactures cotton yarn, grey and dyed fabric, and home textiles. The group was set up by Mr. K Periyasamy, father of Mr. P Nallathambi, who is the present chairman. KKP SPINNING: CRISIL Raises Ratings on INR579.10MM Loans to 'BB' ---------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of KKP Spinning Mills Ltd. (KKP Spinning; part of the KKP group) to 'CRISIL BB/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 270 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Letter of Credit 120 CRISIL A4+ (Upgraded from 'CRISIL A4') Long-Term Loan 110.2 CRISIL BB/Stable (Upgraded from 'CRISIL B+/Stable') Proposed Long-Term 113.9 CRISIL BB/Stable (Upgraded Bank Loan Facility from 'CRISIL B+/Stable') Standby Line of 85.0 CRISIL BB/Stable (Upgraded Credit from 'CRISIL B+/Stable') Supplier Bill 60.0 CRISIL A4+ (Upgraded from Discounting 'CRISIL A4') The rating upgrade reflects CRISIL's belief that the KKP group will sustain the improvement in its financial risk profile and liquidity, backed by improved cash accruals and absence of significant debt funded capex plans. The group reported operating margins of 13.9 per cent on operating revenues of Rs 4.13 billion for 2012-13; the performance is expected to remain healthy over the medium term as well. The group's interest coverage ratio and NCATD have improved to 1.92 and 0.13 times respectively in 2012-13 from 1.97 and 0.12 times respectively in 2011-12. The group's liquidity profile is healthy with net cash accruals of INR 300 million to INR400 million per annum against term debt repayment obligations of INR120 million to INR140 million per annum. However, the bank limits continue to be extensively used. The group is expected to sustain the improvement in its liquidity and financial risk profiles over the medium term as well on the back of the expected healthy operating performance and the absence of significant capex plans over the medium term. The ratings reflect the KKP group's below-average financial risk profile, marked by high gearing and average debt protection metrics, and susceptibility to volatility in raw material prices and intense competition in the textile industry. These weaknesses are partially offset by the KKP group's established position in the industry and its integrated operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KKP Spinning, KKP Fine Linen Pvt Ltd (KKP Fine Linen), KKP Textiles Ltd (KKP Textiles), KKP Hi Tech Weaving India Private Limited (KKP Hi Tech), and KKP Weaving and Processing Mills Ltd (KKP Weaving), collectively referred to as the KKP group. This is because all the companies are in the same line of business and share the same management. Also, the companies are interdependent and have inter-company commercial transactions and a centralised system for procurement of raw materials and marketing arrangements. Outlook: Stable CRISIL believes that the KKP group will continue to maintain its established track record in the textile industry and benefit from its long-standing relationships with customers over the medium term. The outlook may be revised to 'Positive' if healthy profitability and cash accruals lead to an improvement in the KKP group's capital structure. Conversely, the outlook may be revised to 'Negative' if the KKP group's cash accruals decline sharply, adversely affecting its debt servicing ability, or if it contracts a large debt to fund capital expenditure. Based in Namakkal (Tamil Nadu), the KKP group manufactures cotton yarn, grey and dyed fabric, and home textiles. The group was set up by Mr. K Periyasamy, father of Mr. P Nallathambi, who is the present chairman. KARNATAKA VEERASHAIVA: CRISIL Reaffirm BB+ Rating on INR200M Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Karnataka Veerashaiva Vidyabhivrudhi Samsthe continue to reflect the society's stable cash flows from lease rentals and the advantageous location of its commercial properties. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 200 CRISIL BB+/Stable Reaffirmed These rating strengths are partially offset by customer concentration in KVVS's revenue profile, and its small scale of operations. The ratings also factor in the society's average financial risk profile, marked by healthy capital structure and comfortable debt protection metrics albeit constrained by its stretched liquidity. Outlook: Stable CRISIL believes that, over the medium term, KVVS will continue to benefit from its stable rental income primarily from its creditworthy tenant, Tata Consultancy Services Ltd (TCS). The outlook may be revised to 'Positive' if KVVS significantly increases its rental receipts, through timely commercialisation of new properties, without any significant cost overruns. Conversely, the outlook may be revised to 'Negative' in case KVVS undertakes a greater-than-expected, capital expenditure (capex) programme, leading to deterioration in its financial risk profile, or in case of termination of its lease agreement with TCS affecting its cash accruals and timely debt-servicing ability. Update KVVS's revenue increased to INR87.6 million in 2012-13 (refers to financial year, April 1 to March 31) from INR79.2 million in the previous year, driven by the expected increase in lease rental rates. Additionally, the society has maintained its operating margin of around 60 per cent in 2012-13 and could continue to sustain it over the medium term. KVVS is likely to commission new properties of around 36,000 square feet (sqf), over the medium term, which will significantly enhance its revenues and cash accruals. Timely commissioning of such projects, without cost overruns, will be a key rating sensitivity factor. KVVS's financial risk profile remains average, marked by its moderate net worth and low gearing of INR277 million and 0.56 times, respectively, as on March 31, 2013 and adequate debt protection metrics with interest coverage and net cash accruals to total debt (NCATD) ratios of 2.9 and 0.25 times, respectively, for 2012-13. However, the society's liquidity is stretched, marked by closely matched cash accruals vis-�-vis debt obligations, and capex programmes, and its low unencumbered cash and bank balance as on March 31, 2013. Following a capex programme of INR73 million for construction of new properties in 2012-13, KVVS will further expense over INR150 million for the same, over the medium term, mainly funded by external debt. CRISIL believes that KVVS will maintain its comfortable capital structure and adequate debt protection metrics albeit a stretched liquidity profile, due to continuous capex plans, over the medium term. KVVS, on a provisional basis, reported a net surplus of INR17.5 million on an operating income of INR87.6 million for 2012-13, and a net surplus of INR22.8 million on an operating income of INR79.2 million for 2011-12. KVVS is a charitable institution set up in 1905, focusing on development of education in Karnataka. The society currently derives most of its revenues from leasing a commercial property to TCS; the commercial property was developed in circa 2000 at a central location in Bengaluru (Karnataka). Other revenue sources include donations and interest income. KAY KAY: CRISIL Suspends 'BB+' Rating on INR75MM Cash Credit ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Kay Kay Overseas Corporation (KK). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 60 CRISIL A4+ Suspended Cash Credit 75 CRISIL BB+/Stable Suspended The suspension of ratings is on account of non-cooperation by KK with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KK is yet to provide adequate information to enable CRISIL to assess KK'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' KK was set up as a partnership firm in 1995 by Mr. Sharad Khandelwal. The firm trades computers, laptops, computer-related hardware and peripherals. The firm is the exclusive distributor for Dell in Mumbai, and is also an authorised distributor for Hewlett-Packard India. KEDIA CARBON: CRISIL Suspends 'BB+' Rating on INR80MM Cash Credit ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kedia Carbon Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4+ Suspended Cash Credit 80 CRISIL BB+/Stable Suspended The suspension of ratings is on account of non-cooperation by KCPLwith CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KCPL is yet to provide adequate information to enable CRISIL to assess KCPL'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' KCPL was incorporated in 2003 and promoted by Mr. Mahesh Kumar Kedia and family. The company manufactures coal tar pitch, and trades in this material's by-products, such as creosote oil and naphthalene. The company's manufacturing units are located in Rourkela (Orissa), with a combined coal tar distillation capacity of 96,000 tonnes per annum. LAKSHMI CONSTRUCTIONS: CRISIL Suspends 'B' Rating on INR70MM Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Lakshmi Constructions. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 Suspended Overdraft Facility 70 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by LC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, LC is yet to provide adequate information to enable CRISIL to assess LC'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' Established as a proprietorship firm in 1999, LC is promoted by Mr. Prem Israni, who has around 35 years of experience in the civil works business. The firm undertakes civil works in the National Capital Region, which mainly includes construction of buildings, such as housing complexes and colleges. LC also undertakes contracts for government organisations, such as Delhi Development Authority. Till 2009-10 (refers to financial year, April 1 to March 31), the firm only undertook government projects. However, it started undertaking projects for private players from 2010-11. LC is registered as a class I contractor and mostly undertakes projects by bidding directly through tenders. LINUS PROCESSORS: CRISIL Suspends 'B' Rating on INR80MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Linus Processors Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B/Stable Suspended Letter of Credit 60 CRISIL A4 Suspended The suspension of ratings is on account of non-cooperation by LPPLwith CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, LPPL is yet to provide adequate information to enable CRISIL to assess LPPL'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' LPPL was acquired by Mr. Anjan Ray and Mr. Amit Ray (current management) from the Singhal brothers of Kolkata (West Bengal) in 2011. The company was engaged in dyeing of jute fabric earlier. After it was acquired by its present promoters, it entered the business of dyeing hosiery fabrics. LPPL has set up a unit for dyeing in Kalyani (West Bengal), with installed capacity of 10 tonnes per day. MA BHAGWATI: CRISIL Suspends 'D' Ratings on INR239MM Loans ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of MA Bhagwati Sugar Mill Ltd's. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL D Suspended Term Loan 179 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by MBSML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MBSML is yet to provide adequate information to enable CRISIL to assess MBSML'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' MBSML was incorporated in 2007 by the Patel group for setting up a sugar plant. Due to financial and management constraints, the company's management was handed over to the Soni group, led by Mr. Hemant Soni. The plant commenced commercial operations in the sugar season (September to October) of 2008-09 (refers to financial year, April 1 to March 31). The company has manufacturing capacity of 1600 tones crushing per day. Currently, the entire management of the company is handled by the Soni group. MAJESTIC EXPORTS: CRISIL Suspends 'D' Ratings on INR168.1MM Loans ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Majestic Exports. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 6.5 CRISIL D Suspended Export Packing Credit 10.0 CRISIL D Suspended Foreign Bill Discounting 67.0 CRISIL D Suspended Proposed Long-Term Bank Loan Facility 54.6 CRISIL D Suspended Term Loan 30.0 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by Majestic with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Majestic is yet to provide adequate information to enable CRISIL to assess Majestic'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 1987 as a partnership firm, Majestic manufactures ready- made garments for men, women, and children. Its plant is located in Tirupur (Tamil Nadu). It caters to the export market, primarily to wholesalers based in countries, such as Poland, France, the UK, and Germany. MERA BABA: CRISIL Suspends 'D' Rating on INR400MM Term Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Mera Baba Reality Associates Pvt Ltd's. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 400 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by MBL's with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MBL's is yet to provide adequate information to enable CRISIL to assess MBL'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' MBR, promoted by Mr. Adarsh Mohan Garg and Mr. Jag Mohan Garg, is part of the Mera Baba Realty Associates group and is engaged in commercial real estate development in and around Delhi. The company has executed some high-profile projects in the past, including schools, five-star hotels, and commercial complexes. METRO PANELS: CRISIL Assigns 'B+' Ratings on INR55MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Metro Panels Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 15 CRISIL B+/Stable (Assigned) Cash Credit 35 CRISIL B+/Stable (Assigned) Foreign Letter 5 CRISIL B+/Stable (Assigned) of Credit The rating reflects MPI's start-up nature and hence, small scale of operations in the intensely competitive aluminium composite panels segment, and large working capital requirements. These rating weaknesses are partially offset by MPI's established distribution network with pan India presence and the funding support that it receives from its promoters. Outlook: Stable CRISIL believes that MPI will continue to benefit over the medium term from its established distribution network with pan India presence. The outlook may be revised to 'Positive' if the firm efficiently manages its working capital management or registers significant improvement in its topline and profitability, leading to higher-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if MPI's liquidity remains weak on account of large working capital requirements or if its overall financial risk profile remains weak on account of lower-than- expected topline and profitability or in case of larger-than- expected, debt funded capital expenditure. MPI was set up in June 2013 as a 50:50 partnership firm by Mr. Ram Kishore Agrawal and his friend, Mr. Amit Kumar Goyal. MPI has set up a unit for manufacturing aluminium composite panels at Naroda in Ahmedabad (Gujarat). The unit commenced operations in first week of November 2013. MRG AUTO: CRISIL Reaffirms 'B' Ratings on INR290MM Loans -------------------------------------------------------- CRISIL's rating on the bank facilities of MRG Auto Pvt Ltd continue to reflect MRG Auto's weak financial risk profile, marked by high gearing and weak debt protection metrics. The rating also factors in the company's small scale of operations, and exposure to risks inherent in the intensely competitive automobile (auto) dealership market. These rating weaknesses are partially offset by MRG Auto's established track record in the auto dealership segment in Ludhiana (Punjab). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 225 CRISIL B/Stable (Reaffirmed) Overdraft Facility 60 CRISIL B/Stable (Reaffirmed) Proposed Long-Term 5 CRISIL B/Stable (Reaffirmed) Bank Loan Facility Outlook: Stable CRISIL believes that MRG Auto's business risk profile is likely to remain average, given its small scale of operations over the medium term. Moreover, the company's overall credit risk profile is likely to remain constrained by its weak financial risk profile. The outlook may be revised to 'Positive' if MRG Auto reports larger-than-expected business growth, coupled with a significant improvement in its profitability, thereby enhancing its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's liquidity deteriorates, because of its ongoing, debt-funded capital expenditure (capex) programme, or an increase in its working capital requirements. Update MRG Auto reported a healthy growth of around 13 per cent in revenues for 2012-13 (refers to financial year, April 1 to March 31), on the back of a surge in demand for diesel vehicles, with rising petrol prices. CRISIL believes that MRG Auto's sales growth will remain moderate in 2013-14, because of the weak economic environment and intense competition in the auto dealership market in Ludhiana. The company's operating margin of 5.3 per cent in 2012-13, was in line with CRISIL's expectations, and is likely to improve marginally to around 5.5 per cent, due to increasing workshop income. MRG Auto has moderate working capital requirements, indicated by its gross current assets (GCAs) of over 120 days as on March 31, 2013; the company has reported similar GCAs in the past, because of its inventory of around 65 days, and advance payments to Hyundai Motor India Ltd to book diesel vehicles. MRG Auto mainly funds its working capital requirements through its working capital limits, which remain fully utilised; and some loans against property from non-banking financial companies (NBFCs). MRG Auto maintained moderate net worth at around INR108 million, as on March 31, 2013. The company contracted large debt to fund its working capital requirements, which along with its moderate net worth, has resulted in a high total outside liabilities to tangible net worth ratio of around 5 times as on March 31, 2013. The company's debt protection metrics are also weak due to a low interest coverage ratio of around 1.15 times as on March 31, 2013. MRG Auto has debt obligations of around INR24.8 million for 2013- 14. Though the company has generated cash accruals between INR9 million and INR10 million, it will service debt through timely funding support from the promoter. MRG Auto was set up by Shri Ishwar Dass Garg in 1997, to run auto dealerships. The company currently operates two showrooms under the Pioneer Hyundai brand in Ludhiana. In 2013-14, MRG Auto launched a showroom for used Hyundai cars under the Hyundai Advantage brand. The promoter also runs dealerships for Honda through a separate legal entity. NAINITAL TARAI: CARE Reaffirms 'BB' Rating on INR9.79cr Loans ------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Nainital Tarai Seeds Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 9.79 CARE BB Reaffirmed Facilities Rating Rationale The rating continues to remain constrained by the small scale of operations of Nainital Tarai Seeds Limited with low net-worth and low profitability margins due to limited value addition, working-capital intensive operations and deterioration in its capital structure. The rating also factors in NTSL's presence in a highly fragmented industry and susceptibility to fluctuations in raw material prices & monsoon dependant operations. The rating continues to favorably factor in the wide experience of the promoters and proximity to the raw material procurement area. The rating also derives strength from the diversified business operations of the company into paddy processing. NTSL's ability to increase the scale of operations with an improvement in profitability margins and capital structure will be the key rating sensitivities. Nainital Tarai Seeds Limited, based in Kashipur, Uttarakhand was incorporated in January 2007. The company is promoted by Mr Ajay Kumar Agarwal, Mr Priyanshu Agarwal and Ms Priti Agarwal. NTSL is engaged in the processing and trading of wheat and paddy seeds. NTSL had an installed capacity of 4 Metric Tonnes (MT) per hour for processing and grading of wheat and paddy seeds as on March 31, 2013. Furthermore, NTSL also started a rice unit in FY13 (refers to the period April 1 to March 31) which includes milling and processing of paddy. About 40% of the sales of NTSL are made to Food Corporation of India (FCI) and the remaining to traders in the local market. During FY13, NTSL reported a PAT of INR0.06 crore on a total operating income of INR34.18 crore as against a PAT of INR0.07 crore on a total operating income of INR22.74 crore in FY12. In H1FY14, NTSL achieved a total operating income of INR8.75 crore. NAROLA GEMS: CARE Ups Ratings on INR40cr LT Bank Loans From BB+ --------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Narola Gems. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short- 40 CARE BBB-/CARE A3 term Bank Revised from Facilities CARE BB+/CARE A4+ Short-term Bank Withdrawn Facilities The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo a change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The revision in the ratings of Narola Gems is primarily driven by significant improvement in its scale of operations and accruals resulting in healthy debt coverage indicators and moderate capital structure for the firm. The ratings continue to benefit from the promoters' extensive experience along with the established track record of Narola. The ratings continue to be constrained on account of its moderate profitability margins and working capital intensive nature of operations. The ratings further continue to be constrained by the limited presence in the value chain, intense competition from large integrated players, cyclical nature of luxury product and partnership nature of the constitution. Narola's ability to continue to scale up its operations and improve its profitability margins and capital structure amidst intense competition along with efficient management of the working capital cycle are the key rating sensitivities. Established as a partnership firm by Mr Dhiru Narola, Mr Kanayalal Narola and Mr Dalsukh Narola in September 2001, Narola Gems is engaged in the export of cut and polished diamonds ranging up to 3 carats. The firm has a group entity wherein it outsources the processing work, viz M/s Shriji Diamond (which is into cutting and polishing of rough diamonds based in Surat). The firm is not a Diamond Trading Company (DTC) sight holder and procures a majority of the rough diamonds from the international markets, mainly Belgium and Israel. Narola is primarily an export oriented unit with exports mainly to destinations namely Hong Kong, USA, UK, China, Bangkok and few others. During FY13 (refers to the period April 1 to March 31), Narola reported a total operating income of INR193.99 crore (up by 89% vis-a-vis FY12) and a PAT of INR4.34 crore (up by 99% vis-�-vis FY12). NAV BHARAT: CRISIL Suspends 'D' Ratings on INR75.3MM Loans ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Nav Bharat Duplex Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 51.1 CRISIL D Suspended Letter of Credit 20.0 CRISIL D Suspended Term Loan 4.2 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by NBDLwith CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NBDL is yet to provide adequate information to enable CRISIL to assess NBDL'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' NBDL was set up in 1987 by the Gupta family of Meerut (Uttar Pradesh), with the Mittal family becoming co-promoters later. NBDL manufactures newsprint, and kraft paper. These products are used in industries such as publishing, stationary, and lamination. The company's manufacturing unit in Hapur (Uttar Pradesh) has an installed capacity of over 10,000 tonnes per annum (tpa). NBDL sells newsprint to publishers and kraft paper through a network of dealers across India. NEW MODERN: CRISIL Assigns 'BB-' Ratings to INR280MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of New Modern Technomech Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Letter 40 CRISIL BB-/Stable of Credit Bank Guarantee 400 CRISIL A4+ Cash Credit 240 CRISIL BB-/Stable The ratings reflect the extensive experience of NMTPL's promoters in power transmission infrastructure industry and the company's healthy order book, which provides high revenue visibility over the medium term. These rating strengths are partially offset by NMTPL's working-capital-intensive operations and its exposure intense market competition. Outlook: Stable CRISIL believes that NMTPL will benefit over the medium term from the extensive industry experience of the promoters in the power transmission industry. The outlook may be revised to 'Positive' if NMTPL's business risk profile improves owing to significant improvement in its scale of operations while sustaining its profitability or in case of improvement in financial risk profile, particularly liquidity, through improved working capital management. Conversely, lower-than-expected accruals or stretch in working capital cycle or larger-than-expected debt-funded capital expenditure leading to deterioration in the company's liquidity may result in a revision in the outlook to 'Negative'. Set up in 1982 as a partnership entity, NMTPL was reconstituted as a private limited company in 1994. The company undertakes contracts for installation of power transmission towers, substations, and power distribution systems on a turnkey basis. It is also engaged in manufacturing fabricated and galvanised steel structures for electrical transmission line towers, substation structures, and for overhead railway electrification tower. The company is promoted and managed by Mr. Shashanka Sekhar Sarangi and his son Mr. Sumit Kumar Sarangi. NIRMAL PUMPS: CRISIL Suspends 'BB' Ratings on INR96.5MM Loans ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Nirmal Pumps Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB/Stable Suspended Long-Term Loan 22.5 CRISIL BB/Stable Suspended Proposed Long-Term 5.0 CRISIL BB/Stable Suspended Bank Loan Facility Standby Line of Credit 9.0 CRISIL BB/Stable Suspended The suspension of ratings is on account of non-cooperation by NPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NPPL is yet to provide adequate information to enable CRISIL to assess NPPL'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 1987 as a proprietorship concern, NPPL was reconstituted as a private limited company in 2007. The company is a contract manufacturer of household pumps for pump manufacturers such as CRI Pumps Pvt Ltd (CRI pumps; rated 'CRISIL A/Stable/CRISIL A1'). The company's produces centrifugal jet self priming pumps, which are used in household applications. NPPL is based in Coimbatore (Tamil Nadu) and has a manufacturing capacity of 30,000 pumps per month. The company's promoters are relatives of the directors of CRI pumps. Mr. D Soundarajan, one of the shareholders and directors of NPPL is the son-in-law of the late Mr. Gopal, the promoter of CRI pumps. NPPL's day-to-day are managed by the director, Mr. D Soundararajan. NOEL PHARMA: CRISIL Suspends 'D' Ratings on INR20MM Loans --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Noel Pharma (India) Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D Suspended Letter of Credit 15 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by Noel with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Noel is yet to provide adequate information to enable CRISIL to assess Noel'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' Noel, set up in 1997 as a partnership firm, manufactures pharmaceutical products, including ethical, generic, and over-the- counter (OTC) drugs. The firm is owned and managed by Mr. S Venkataiah and his family members. The firm has set up its own manufacturing facility at Baddi (Himachal Pradesh), commissioned in April 2010. The firm has about 250 products and it has operations across various states viz., Bihar, Jarkhand, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, and Rajasthan. OTTOMAN INDUSTRIES: CRISIL Suspends 'BB-' Rating on INR150M Loans ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ottoman Industries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4+ Suspended Cash Credit 90 CRISIL BB-/Stable Suspended Letter of Credit 50 CRISIL A4+ Suspended Term Loan 60 CRISIL BB-/Stable Suspended The suspension of ratings is on account of non-cooperation by OIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, OIPL is yet to provide adequate information to enable CRISIL to assess OIPL'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' OIPL was set up by Mr. Hardeep Mahajan in 2006 after the family division in 2005. The company manufactures ERW tubes, cold drawn welded (CDW) tubes, and stainless steel (SS) tubes for the automotive industry. The company undertakes jobwork for TSL and gets fixed conversion charges per metric tonne. All the products manufactured are as per the international standards and cut to different sizes as per customers' requirements. The company has an annual installed capacity to manufacture around 42,000 tonnes of ERW tubes, 6000 tonnes of CDW, and about 2000 tonnes of SS tubes. OIPL has a slitting capacity of 50,000 tpa. Currently, the company is being managed by Mr. Hardeep Mahajan along with his sons, Mr Vishesh Mahajan and Mr. Vipul Mahajan. PADMANABH HEALTHCARE: CRISIL Reaffirms 'B-' Rating on INR68M Loan ----------------------------------------------------------------- CRISIL's rating on the bank facilities of Padmanabh Healthcare Pvt Ltd reflects PHPL's low occupancy level, due to the start-up nature of its operations, and weak financial risk profile, marked by a high debt-to-equity ratio for funding its hospital project, coupled with weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of PHPL's promoters in the healthcare industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 68.0 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that PHPL will continue to benefit over the medium term from its promoters' extensive experience in the medical sector, coupled with the negligible presence of other multi- speciality hospitals in the Dehradun (Uttarakhand) region. The outlook may be revised to 'Positive' if PHPL scales up its operations, most likely through increase in its occupancy levels, coupled with improvement in its profitability, leading to higher- than-expected cash accruals and improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' if PHPL's occupancy levels decline, resulting in lower-than-expected revenues, if its working capital management deteriorate and/or if it undertakes any large debt-funded capital expenditure (capex) programme, thereby further weakening its financial profile. Update PHPL has further revised the scope of its hospital project, which led to revision in its project cost to around INR280 to INR300 million from INR208.3 million. The change in scope of the project included addition of new equipment and machineries for providing additional facilities such as magnetic resonance imaging (MRI), pathology, gynaecology, paediatric, pulmonology and oncology. PHPL's reach and occupancy levels remained low in its first year of operations, as reflected in its operating revenues of INR95.1 million with operating losses of INR3.5 million for 2012-13 (refers to financial year, April 1 to March 31), which was mainly on account of the novelty of the brand. CRISIL expects PHPL's revenues and profitability to remain low over the medium term, owing to moderate occupancy levels and initial start-up nature of hospital operations. The company's financial risk profile remains weak, marked by its low net worth of around INR49 million due to negative accretion to reserves, high gearing of 3.37 times as on March 31, 2013. The company's weak debt protection metrics were weak with negative interest coverage ratio and net cash accruals to total debt NCATD) ratio for 2012-13. The company's gearing has deteriorated on account of increased scope of the project, funded through additional bank debt and interest bearing unsecured loans and advances from its promoters. CRISIL expects PHPL's financial risk profile to remain weak over the medium term on account of low to moderate occupancy levels due to start up nature of operations. Going forward CRISIL expects the gearing to remain high due to high working capital requirements and low accretion to reserves leading to low profitability in the medium term. The company's liquidity is poor, marked by expected low or negative cash accruals for 2013-14 due to low to moderate occupancy levels and limited financial flexibility. The company has fixed repayment obligations of INR3.6 million due for 2013-14. However the company's liquidity is partially supported by sanctioning of an ad-hoc limit of INR15 million in August 2013 coupled with support from its promoters through unsecured loans which stood at INR21.1 million as on March 31, 2013. PHPL, incorporated in June 2009, was promoted by Dr. Krishan Avtar, his wife, Dr. Seema Avtar, and Mr. Kamal Kant Garg. It has recently set up a 120-bed super-specialty (tertiary) hospital at Ashirwad Enclave, Dehradun (Uttarakhand). The hospital commenced operations in August 2012. PAN FUELTECH: CRISIL Suspends 'B-' Ratings on INR70MM Loans ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Pan Fueltech Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B-/Stable Suspended Proposed Long-Term 10 CRISIL B-/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by PFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PFPL is yet to provide adequate information to enable CRISIL to assess PFPL'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 2002, PFPL trades in auto liquefied petroleum gas (LPG) cylinders and kits, compresses natural gas (CNG) cylinders and kits, multi-valves, and LPG mixtures and industrial cylinders. The company derives around 85 per cent of its revenue from sale of LPG and CNG cylinders, most of which is purchased from affiliate companies, viz Sahuwala Cylinders Pvt Ltd and Sahuwala High Pressure Cylinders Pvt Ltd (rated CRISIL D). PRAGATI AGRI: CARE Rates INR6cr LT Bank Loans at 'BB' ----------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Pragati Agri Products Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6.0 CARE BB Assigned Facilities Short-term Bank 3.5 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Pragati Agri Products Pvt Ltd are primarily constrained by its relatively small size of operations coupled with low profitability margins in the highly competitive edible oil industry. The ratings also factor in its susceptibility to volatile raw material price, exposure to vagaries of nature being an agri-based commodity and low level of awareness amongst the consumer fraternity about rice bran oil (RBO). The aforesaid constraints are partially offset by its long track record of operations, longstanding experience of the promoters in the edible oil business, reputed clientele, proximity to raw material source and comfortable capital structure. The ability of the company to increase its scale of operations along with an improvement in the profitability margins would be the key rating sensitivities. Pragati Agri Products Pvt Ltd was incorporated in June 1995 by two brothers, Mr Sushil Kumar Agarwal and Mr Purushottam Agarwal of Kolkata. Initially it commenced operations with trading in rice bran oil and rice bran. Subsequently in February 2006, PAPL discontinued the trading operation and forayed into extraction of crude edible oil. PAPL's manufacturing plant is situated in Burdwan, West Bengal, having an installed capacity of 66,000 Metric Tonnes Per Annum (MTPA). During FY13 (refers to the period April 1 to March 31), PAPL reported a total operating income of INR74.13 crore and PAT of INR0.33 crore. RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR80MM Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Radheshyam Industries continue to reflect its below-average financial risk profile marked by high gearing and moderate debt protection metrics and modest scale of operations in a highly fragmented industry. The rating also factors in the vulnerability of the firm's business risk profile and profitability to changes in government policy. These rating weaknesses are partially offset by the extensive industry experience of RI's partners and its established customer relationships. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that RI will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' if the firm's scale of operations improves significantly, along with a sustained improvement in its profitability, or if its capital structure improves either by equity infusion by the partners or higher-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile weakens further due to increased working capital borrowings or in case of change in government policy having a negative impact on its operations. Update RI's sales of INR1174.3 million in 2012-13, grew at a healthy rate of 26 per cent year-on-year, driven by an increase in average price of cotton and sales volumes. Although, the operating profitability remains low at 1-2 per cent, because of low value addition in the business, the absolute net profits doubled in 2012-13 because of the increase in scale. The firm is expected to achieve moderate growth in 2013-14, with improvement in operating profitability margins as well, backed by higher availability of raw cotton on expectations of a good cotton season. The financial risk profile is below-average marked by a modest networth, high gearing and average debt protection metrics. On account of low profitability, RI's networth was modest at INR31 million as on March 31, 2013, despite equity infusion by promoters of INR4.5 million in 2012-13. Backed by the equity infusions, the gearing improved marginally but remains high at around 3.3 times as on March 31, 2013, because of high reliance of the firm on outside funds to support its working capital requirements. As a result, the debt protection metrics remain average with interest coverage and net cash accruals to total debt ratio of 1.9 times and 0.06 times in 2012-13. The liquidity is average marked by low bank limit utilization and absence of term loans. The bank limits were utilised at around 60 per cent during the peak months of the cotton season, because of its low working capital cycle, evidenced by gross current assets of 37 days as on March 31, 2013. The partners have also supported the firm through equity infusion and unsecured loans; the partners infused INR4.5 million along with unsecured loans of INR7.4 million from friends and relatives in 2012-13. Moreover, the firm has prepaid its term debt in the first half of 2013-14, and is expected to generate cash accruals of around INR7.5 million in 2013-14. RI reported a net profit of INR2.3 million on net sales of INR1174.3 million in 2012-13, on a provisional basis, against a net profit of INR0.9 million on net sales of INR935.3 million in 2011-12. RI was set up in 2008 as a partnership firm by Mr. Barkatali Bhimjibhai, Mr. Amarshibhai Aambabhai, Mr. Samsudinbhai Sadrudinbhai, Mr. Akbarali Bhimjibhai, Mr. Yogeshbhai Dirubhai, Mr. Nagjibhai Aambabhai, Mr. Firojali Pyarlibhai, and Mr. Alkeshbhai Sirajbhai. The firm has a cotton ginning and pressing unit in Amreli (Gujarat). RAMOJI GRANITE: CARE Cuts Rating on INR24.53cr Loans to 'BB-' ------------------------------------------------------------- CARE revises/reaffirms the rating assigned to the bank facilities of Ramoji Granite Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 24.53 CARE BB- Revised Facilities from CARE BB Short-term Bank 2.50 CARE A4 Reaffirmed Facilities Rating Rationale The revision in the ratings assigned to the bank facilities of Ramoji Granite Limited is primarily due to the decline in turnover in FY13 (refers to the period April 1 to March 31), lower cash accruals and deterioration in liquidity position. The ratings continue to remain constrained by the presence of RGL in an intensely competitive tile industry, declining profitability, vulnerability of profit to fluctuation in raw material and fuel prices and direct linkages to the cyclical real estate sector. The ratings continue to take comfort from the experience of the promoters in the tile industry, moderate gearing level and its presence in the ceramic tile cluster of Morbi in Gujarat. The ability of RGL to increase its scale of operations with higher capacity utilization, market presence and profitability while managing raw material price volatility are the key rating sensitivities. RGL, incorporated in 2003, was promoted by Mr Ramji B Kundaria and family members for the manufacturing of vitrified tiles in order to cater to the increasing demand from the real estate sector. RGL is a part of the Ramco group engaged in the manufacturing of ceramic floor tiles. RGL's manufacturing facility is located in the ceramic tile cluster of Morbi in Gujarat with a capacity of 103,500 metric tonnes per annum (MTPA) as on March 31, 2013. The other group concern, Ramco Ceramics Ltd, is engaged in the manufacturing of floor tiles. Both companies have common management and marketing and distribution setup and sell their products under the RAMCO brand name. During FY13, RGL reported a total operating income of INR66.31 crore (FY12: INR92.86 crore) and a PAT of INR0.02 crore (FY12: INR0.59 crore). RK AGARWAL: CARE Reaffirms 'BB' Rating on INR14.01cr Loans ---------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of RK Agarwal Agro Seeds Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14.01 CARE BB Reaffirmed Facilities Rating Rationale The rating continues to remain constrained by the small scale of operations of R K Agarwal Agro Seeds Limited coupled with low net- worth base and thin profitability margins on account of low value addition. The rating is also constrained by the inherent risks associated with the agro-based industry viz fragmented nature and seasonality. The rating, however, continues to derive strength from the vast experience of the promoters in the agro-business and favourable location of the manufacturing unit due to proximity to the farmers. The ability of RKAASL to increase the scale of operations while maintaining its profitability margins in a highly competitive market and maintain its favorable capital structure will be the key rating sensitivities. R K Agarwal Agro Seeds Limited, based in Kashipur, Uttarakhand, was incorporated in September 2009. The company is promoted by Mr Ajay Kumar Agarwal, Mr Priyanshu Agarwal and Ms Priti Agarwal. RKAASL is engaged in the processing and trading of wheat and paddy seeds. RKAASL had an installed capacity of 6.5 Metric Tonnes (MT) per hour for processing and grading of wheat and paddy seeds as on March 31, 2013. During FY13 (refers to the period April 1 to March 31), RKAASL reported a PAT of INR0.07 crore on a total operating income of INR20.28 crore as against a PAT of INR0.06 crore on a total operating income of INR18.63 crore in FY12. In H1FY14 the company has achieved a total operating income of INR3.70 crore. ROHIT FERRO: CARE Cuts Ratings on INR1,366.23cr Loans to 'BB-' -------------------------------------------------------------- CARE revises the long-term rating to 'CARE BB-' from 'CARE BBB' and revises the short-term rating to 'CARE A4' from 'CARE A3' assigned to the bank facilities of Rohit Ferro Tech Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 609.73 CARE BB- Revised from Facilities CARE BBB (Term Loan) Long-term Bank 200.00 CARE BB- Revised from Facilities CARE BBB (Fund based) Long-term Bank 21.50 CARE BB- Revised from Facilities CARE BBB (Non Fund Based) Long-term/Short- 500.00 CARE BB-/A4 Revised from term Bank CARE BBB/A3 Facilities (Fund Based) Long-term/Short- 35.00 CARE BB-/A4 Revised from term Bank CARE BBB/A3 Facilities (Non-Fund Based) Short-term Bank 15.00 CARE A4 Revised from Facilities CARE A3 (Fund Based) Short-term Bank 473.00 CARE A4 Revised from Facilities A3 CARE A3 (Non-fund based) Rating Rationale The revision in the rating of Rohit Ferro Tech Limited takes into consideration the significant deterioration in the financial performance characterized by the stretched collection period and cash flow mismatch during Q2FY14 which led its management to contemplate for restructuring of its debt through the corporate debt restructuring (CDR) process. The ratings are constrained by th highly leveraged capital structure, susceptibility to volatility in raw material and finished goods prices, foreign exchange fluctuation risk, complete dependence of ferro alloys industry on the cyclical steel sector and project implementation risk associated with its ongoing projects. However, the ratings derive strength from RFTL's experienced promoters, long track record, and its diversified geographic presence. The ability of the company to improve its profitability margin and to deleverage its capital structure on the back of successful completion of the ongoing projects on time remains the key rating sensitivity. Rohit Ferro Tech Ltd is a Kolkata-based manufacturer & trader of High Carbon Ferro Chrome & other related products used in the manufacturing of steel (primarily mild, alloy and stainless steel). This apart, the company is also engaged into manufacturing of stainless steel. RFTL's manufacturing units are located at Bishnupur (West Bengal), Haldia (West Bengal) and Jajpur (Orissa) with an aggregate installed capacity of 283,755 metric tonnes per annum (MTPA) for Ferro Alloys and 100,000 MTPA for Stainless Steel as on March 31, 2013. The company is also setting up a 67.5 MW coal-based captive power plant and a 33MVA submerged arc furnace (74,462 MTPA) along with sintering plant and allied facilities in Jajpur, Orissa. During FY13 and H1FY14 (provisional), RFTL reported a PAT of INR28.9 crore and a net loss of INR54.2 crore on a total operating income of INR2,269.7 crore and INR1,306.2 crore respectively. SHREE SHYAM: CARE Assigns 'BB-' Rating to INR5.42cr LT Loans ------------------------------------------------------------ CARE assigns 'CARE BB-/CARE A4' ratings assigned to the bank facilities of Shree Shyam Road Carrier. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.42 CARE BB- Assigned Facilities Short-term Bank 0.50 CARE A4 Assigned Facilities The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo a change in 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 ratings assigned to the bank facilities of Shree Shyam Road Carrier are constrained by its stressed financial risk profile marked by the highly leveraged capital structure along with weak liquidity position and customer concentration risk arising out of top three customers contributing almost 60% to the total income from operations. The ratings are further constrained by its presence in a highly fragmented industry along with challenges faced by the road transportation industry and proprietorship constitution. The above constraints are partially offset by the moderate track record of the firm and experience of its promoters, reputed and established clientele and yearly contracts with most of the customers and contracts with suppliers leading to an improvement in the profitability margins. The ability of the firm to increase its scale of operations along with an improvement in solvency and liquidity position would be the key rating sensitivity. Shree Shyam Road Carrier, an ISO 9001:2008 certified firm, was established in 2003 as a proprietorship concern. The firm is engaged in providing transportation and logistics services viz Full Truck Load (FTL), parcel services, train cargo services, air cargo services, warehouse and distribution services. SSRC has its head office at Kundaim (Goa) and 25 branches in different cities. The firm owns 140 vehicles of various sizes which includes 75 trucks of 34x8.5x10.5' size, 30 AC containers of 30 ft multi axle, 10 vehicles of 36 ft 3-Axle and 25 refrigerated vehicles for carrying frozen foods. Shree Shyam Road Carrier registered a PAT of INR 1.35 crore on a total operating income of INR33.14 crore during FY13 (refers to the period April 1 to March 31) as against a total operating income of INR28.65 crore and PAT of INR1.30 crore in FY12. SHRI HARI: CARE Assigns 'B' Rating to INR5.26cr LT Bank Loans ------------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Shri Hari Education And Charitable Trust. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.26 CARE B Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Shri Hari Education and Charitable Trust are primarily constrained due to the financial risk profile marked by losses in the initial phase, moderately leveraged capital structure and weak coverage indicators. The ratings are further constrained on account of project implementation risk, competition from renowned institutes in and around Gujarat and the highly regulated education industry with regard to approvals and accreditations. These constraints outweigh the benefits derived from the moderate enrolment ratio and increased demand for quality management & technical education. The ability of SHECT to complete the project within cost and time parameters, continued financial support from the promoters in the initial phase and increasing its scale of operations by sustaining the strong enrolment ratio remains the key rating sensitivity. Junagadh-based (Gujarat), SHECT was formed in August, 2010 as a Public Trust under the Bombay Public Trust Act, 1950 by ten trustees with the object of setting up professional education institutions. SHECT established an engineering college under the name Atmiya Institute to provide diploma courses in engineering. Later on in 2011 the name of the college was changed to Amrut Institute (AMI). AMI is approved by the All Indian Council for Technical Education (AICTE) and Gujarat Technological University (GTU) for providing diploma courses in the engineering field. As per the provisional results for FY13 ( refers to the period April 1 to March 31), SHECT reported a total operating income of INR2.37 crore (FY12 (A): INR1.60 crore) and a net loss of INR0.24 crore (FY12 (A): net loss of INR0.01 crore). SHRINIWAS MACHINE: CRISIL Ups Ratings on INR145MM Loans to 'BB-' ---------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Shriniwas Machine Craft Pvt Ltd (SMCPL; part of the Rewale group) to 'CRISIL BB-/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') Term Loan 85 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') The rating upgrade reflects the sustained improvement in the Rewale group's financial risk profile, driven by healthier profitability and better working capital management. Over past two years, the group has maintained its topline at more than INR600 million per year, with a healthy operating margin of above 15 per cent. Also, its average gross current assets have reduced to less than five months as on March 31, 2013, from six to seven months earlier. This has meant controlled reliance on external funding and healthy accretions to reserves. The Rewale group's gearing has improved to 0.58 times on a net worth base of INR191 million as on March 31, 2013. Its debt protection metrics too were healthy, with interest coverage and net cash accruals to total debt ratios at 7.6 times and 0.56 times, respectively, for 2012-13 (refers to financial year, April 1 to March 31). In the absence of any significant capital expenditure (capex) plans, the Rewale group's financial risk profile is expected to be sustained over the medium term. The rating reflects the Rewale group's above-average financial risk profile, marked by a moderate net worth, healthy gearing, and comfortable debt protection metrics, and its strong relationships with customers. These rating strengths are partially offset by high end-user concentration in the group's revenue profile, its modest scale of operations, and its large working capital requirements. The rating also factors in the weak prospects for the group's end user industry. For arriving at the rating, CRISIL has combined the business and financial risk profiles of SMCPL, Rewale Engineering Pvt Ltd, and Venkatesh Engineering Equipment Pvt Ltd. This is because the three companies, collectively referred to as the Rewale group, are in the same line of business, under a common management, and have strong operational and financial linkages with each other. REPL and VEEPL jointly own the majority of SMCPL's equity shares. REPL is a contract manufacturer for SMCPL, while VEEPL has guaranteed SMCPL's bank facilities. Outlook: Stable CRISIL believes that the Rewale group will maintain its financial profile over the medium term, supported by healthy profitability and an improved working capital management. However, the group's business risk profile will remain constrained by its high exposure to sluggish demand from the passive infrastructure segment in the telecommunication (telecom) industry. The outlook may be revised to 'Positive' if the Rewale group reports a significant increase in its scale of operations, while sustaining its profitability, further improving its working capital management, and reducing its exposure to the telecom industry. Conversely, the outlook may be revised to 'Negative' if the group reports a decline in its sales and profitability, leading to lower-than-expected cash accruals, or if it undertakes a substantial debt-funded capex programme, or if there is a stretch in its working capital cycle, affecting its liquidity. SMCPL was set up by Mr. Vilas Rewale in 2003; it is part of the Rewale group, which commenced operations under REPL in 1983. SMPCL manufactures sheet metal canopies for generator sets for original equipment manufacturers such as Mahindra and Mahindra Ltd (M&M); these canopies are ultimately used in the telecom industry. Currently, SMCPL subcontracts its entire manufacturing operations to REPL. In 2005, Mr. Rewale set up VEEPL, which assembles generator sets (on a job-work basis) for M&M. SINGAN PROJECTS: CARE Revises Rating on INR20cr Loans to 'B+' ------------------------------------------------------------- CARE revises/reaffirms the rating assigned to the bank facilities of Singan Projects Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 20 CARE B+ Revised from Facilities CARE B- Short-term Bank 45 CARE A4 Re-affirmed Facilities Rating Rationale The revision in the rating takes into account the improvement in the liquidity profile of the company with an improvement in the working capital position and addition of direct contracts vis�- vis sub-contracted work orders. The ratings also factor in the satisfactory experience of the promoters, moderate order book position, satisfactory debt coverage indicators and marginal improvement in the profitability during FY13 (refers to the period April 01 to March 31). The ratings, however, are constrained by the concentrated order book, decline in revenue in FY13, stretched operating cycle with unbridged working capital gap and moderate industry growth prospects. The ability of the company to diversify the order book, recover contract proceeds in a timely manner and efficiently manage the working capital are the key rating sensitivities. Incorporated in 2002, Singam Projects Limited is promoted by Mr S Narayana of Hyderabad, Andhra Pradesh. The company is engaged in the execution of civil construction contracts with work orders spanning across water drainage, water supply scheme, development/improvement of reservoir, sanitation, drinking water projects, etc, with a majority of work orders awarded by the state and central government departments. The order book as on September 30, 2013 comprised of 16 projects valued INR153.93 crore (against INR152 crore as on July 1, 2012) spread across water supply projects (98%) and balance work in water drainage system. During FY13, SPL posted a PBILDT of INR9.01 crore (FY12 - INR11.32 crore) and PAT (after deferred tax) of INR2.61 crore (FY12 - INR2.64 crore) on a total operating income of INR71.57 crore (FY12 - INR92.19 crore). As per the unaudited working results for H1FY14 (half year ended September 30, 2013), the company achieved gross billing of INR54.2 crore and PBT of INR 2.66 crore. SOMA SRINIVAS: CRISIL Rates INR30MM Loan at 'BB-' ------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of M/s Soma Srinivas Reddy. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4+ Overdraft Facility 30 CRISIL BB-/Stable The rating reflects the extensive industry experience of promoters in the civil construction industry, and its moderate financial risk profile marked by moderate capital structure and healthy debt protection metrics. These rating strengths are partially offset by SSR's high working capital intensive operations, its limited revenue diversity and its modest scale of operations. Outlook: Stable CRISIL believes that SSR will benefit over the medium term from the long standing entrepreneurial experience of its promoters .The outlook may be revised to 'Positive', if SSR increases its scale of operations and operating profitability significantly over the medium term there by leading to an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative', if the company undertakes any significant debt-funded capital expenditure or if its revenues and operating profitability decline or if its working capital cycle elongates leading to deterioration in its financial profile. Set up in 1996 as a Partnership entity and based in Hyderabad, SSR is involved in civil construction for infrastructure projects like roads and bridges. For 2012-13 (refers to financial year, April 1 to March 31), SSR reported a PAT of INR9.29 million on net sales of INR189.2 million, against a PAT of INR3.77 million on net sales of INR103.9 million for 2011-12. SURYAUDAY SPINNING: CRISIL Suspends D Ratings on INR308.4MM Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Suryauday Spinning Mills Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL D Suspended Cash Credit 72 CRISIL D Suspended Foreign Bill Discounting 10 CRISIL D Suspended Long-Term Loan 206.4 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by SSMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSMPL is yet to provide adequate information to enable CRISIL to assess SSMPL'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' Established in August 2005 by Mr. Brij Gopal Asawa, SSMPL manufactures polyester staple yarn. The company is located in Lingojiguda (Andhra Pradesh) and has a capacity of 14,300 spindles. SSMPL manufactures yarn of counts ranging from 3.5s to 35s. It procures raw material (polyester fibre) from its associate, Srinath Trading Agencies, which is a commission agent for RIL's polyester fibre products in Andhra Pradesh. SSMPL sells its products through commission agents to textile players and conveyor-belt manufacturers. SVVR EDUCATIONAL: CRISIL Reaffirms 'B-' Rating on INR130M Loan -------------------------------------------------------------- CRISIL's rating on the long-term bank facility of S V V R Educational Society continues to reflect SVVR's stretched liquidity with its low cash accruals expected to tightly match its term debt repayment obligations, its weak financial risk profile marked by its small net worth, high gearing and below average debt protection metrics, and its exposure to regulatory risks. These rating weaknesses are partially offset by the society's diversified revenue across various disciplines, and the continued financial support it receives from its promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 130.0 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SVVR will continue to benefit over the medium term from the continued financial support it receives from its promoters. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in the society's revenues, while maintaining its profitability margins. Conversely, the outlook may be revised to 'Negative' if there is a steep decline in the society's profitability margins from the current levels or there is a significant deterioration in its capital structure on account of large debt-funded capex. SVVR was set up in 2008 by the promoters of the SAGAR group of industries; Mr. Sammidi Veera Reddy is the society's current president. SVVR currently operates three educational institutes -- Sagar Institute of Technology (SIT), Food and Agri Business School (FABS), and Sagar Business School (SGBS). The society started its operations with SIT and FABS in September 2009; SGBS started its operations in 2011. However, the society is planning to discontinue the operations in SGBS. The campuses of all the three institutes are in Chevella, Ranagareddy District (Andhra Pradesh). TIRUPATI UDYOG: CRISIL Suspends 'D' Ratings on INR331MM Loans ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Tirupati Udyog Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30.5 CRISIL D Suspended Cash Credit 125.0 CRISIL D Suspended Letter of Credit 40.0 CRISIL D Suspended Long-Term Loan 35.5 CRISIL D Suspended Working Capital 100.0 CRISIL D Suspended Term Loan The suspension of ratings is on account of non-cooperation by TUL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TUL is yet to provide adequate information to enable CRISIL to assess TUL'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' TUL, based in Hyderabad, manufactures thermo-mechanically-treated (TMT) bars, angles, girders, and channels with an installed capacity of 200 tonnes per day. TUL sells TMT bars under the Tirupati TMT brand. It was earlier known as Caps Steel Ltd; the company was renamed in 2001, when the business was taken over by Mr. Yogendar Garg, Mr. Dinesh Goyal, Mr. Vipin Jain and Mr. Pulkit Garg. UNITED MARINE: CRISIL Suspends 'D' Ratings on INR99.9MM Loans ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of United Marine Services. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 2 CRISIL D Suspended Term Loan 97.9 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by UMS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ALO is yet to provide adequate information to enable CRISIL to assess UMS'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' UMS was established as a partnership firm in 2009 by Mr. Sanjay Naik, Ms. Jayashree Naik and Ms. Piedade D'Souza. The firm is in transhipping business, which is inland transport business. It started operations in January 2010 and has two barges in operations, each with capacity of 2200 dead weight tonnage. UMS deploys its barges on charter basis to iron-ore exporting firms. VIDHATA METAL: CRISIL Suspends 'B' Ratings on INR141MM Loans ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Vidhata Metal Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 4 CRISIL A4 Suspended Cash Credit 50 CRISIL B/Stable Suspended Proposed Long-Term Bank Loan Facility 6 CRISIL B/Stable Suspended Rupee Term Loan 85 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by VMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VMPL is yet to provide adequate information to enable CRISIL to assess VMPL'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 March 2008, VMPL manufactures mild-steel billets from steel scrap and sponge iron. The company is promoted by Mr. Ishwar Samota and Mr. Rajesh Garg. Mr. Garg is the new addition to the board and he has experience in handling another group company which is in similar line of business as VMPL. VMPL's manufacturing unit has capacity of about 51,000 tonnes per annum; the unit is in Wada, which is a manufacturing hub for steel long products, the end-user segment of billets. VOORA PROPERTY: CRISIL Reaffirms 'BB-' Rating on INR365MM Loan -------------------------------------------------------------- CRISIL's rating on the bank facilities of Voora Property Developers Pvt Ltd reflects the extensive experience of VPDPL's promoters in the real estate development business. This rating strength is partially offset by VPDPL's exposure to risks related to completion and saleability of its ongoing projects and to cyclicality in the real estate industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 365 CRISIL BB-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that VPDPL will benefit over the medium term from the experience of its promoters in the residential real estate development business. The outlook may be revised to 'Positive' if the company completes its ongoing projects earlier than expected and in case of more-than-expected sales realisations from these projects, leading to larger-than-anticipated cash flow. Conversely, the outlook may be revised to 'Negative' if there are delays in the execution of the projects or in the receipt of advances from customers, or if there is significant decline in realisations, or if VPDPL undertakes a large debt-funded project, resulting in deterioration in its liquidity. VPDPL, incorporated in 1995, undertakes residential and commercial real estate development in Chennai (Tamil Nadu). The company is a part of the Voora group, which is owned by V. Lakshmi Narasimha Rao. ========= J A P A N ========= TOKYO ELECTRIC: Pins Profit on Plant Restarts, Rate Rise -------------------------------------------------------- The Japan Times reports that Tokyo Electric Power Co. would amass a pretax profit of around JPY100 billion in the business year through March 2015 if two reactors at its seven-reactor nuclear plant in Niigata Prefecture can resume operations by next July, according to a plan presented to the utility's creditor banks. According to the report, Tepco could post a loss of about JPY80 billion if reactors at the Kashiwazaki-Kariwa plant remain offline through the year to March 2015, but it estimated that the loss would be more than offset if it resorts to a 10 percent electricity rate hike. The Japan Times relates that the earnings projections, released on November 14, indicate Tepco sees the reactivation of idled reactors, which would help curtail heavy fuel costs for thermal power generation, as a pillar to put its business on a sound footing. The report says the creditor banks will examine the firm's earnings projections and restructuring measures to decide whether to accept Tepco's loan requests. The Japan Times notes that the utility plans to revise its current business turnaround plan in December as the company is having difficulty sticking to it. Under the existing business plan, the report relates, Tepco was expected to reactivate four of the seven reactors at the Kashiwazaki-Kariwa plant during the current fiscal year as part of measures to move into the black. But Tepco has so far only applied for safety assessments of reactors 6 and 7, and the process has not shown much progress. Nuclear regulators have been wary amid the utility's poor handling of the crisis at the Fukushima No. 1 plant, according to the report. The report adds that among several scenarios presented to the banks, Tepco said it expects to post a pretax profit of about JPY200 billion in fiscal 2014 if the two Kashiwazaki-Kariwa reactors are back online by April. But it will post a loss of about JPY15 billion if the restarts are delayed to January 2015. Tepco wants to secure JPY300 billion in fresh loans from the major creditors as early as next month and refinance JPY200 billion in existing loans, the report relays. About Tokyo Electric 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: Fulton Hogan to Continue Road Works ---------------------------------------------------------- Praneeta Prakash at fijivillage.com reports that maintenance work on all the roads in the Northern Division will now be carried out by Fulton Hogan Highway as current contractors Blacktop Construction Limited, an Auckland-based contractor has gone into receivership. According to Fiji Roads Authority Chief Executive Officer Neil Cook, Blacktop Construction Limited owes more than NZ$5 million to suppliers and subcontractors, the report notes. Mr. Cook, the report notes, added that the debt relief package has certain criteria. The report relates that Mr. Cook also said that more than NZ$3 million is expected to be paid out. Fulton Hogan Highway Stabilizers will take over the Northern maintenance contract effective from Monday on the existing terms and conditions, the report relays. Approximately 80 workers who are under Blacktop Construction Limited will be employed by the new contractor, the report adds. CHORUS LTD: With Dividend Guidance on Regulatory Uncertainty ------------------------------------------------------------ Duncan Bridgeman at NBR Online reports that Chorus has withdrawn its dividend guidance of 25.5 cent per share for the 2014 financial year, blaming regulatory uncertainty and the outcome of the government's independent review. "At this time of unprecedented levels of investment by Chorus, withdrawing dividend guidance is a regrettable but necessary step in light of the ongoing uncertainty Chorus faces," NBR quotes Chorus chief executive Mark Ratcliffe as saying. Chorus' earnings path hangs on the government's response to plans by the commerce commission to cut its prices, the report notes. According to NBR, Chorus said in a statement to the NZX that it is investing roughly three dollars in the Ultra-fast Broadband initiative for every dollar of financing provided by the Crown to support the delivery of the upgraded infrastructure. "We are proud of our role as the cornerstone partner in the Ultra- fast Broadband initiative, which is being delivered like clockwork." "We remain hopeful that as the major partner in New Zealand's largest public private partnership we can work with the Government to find a timely solution to the current issues that works for all parties and provides Chorus and its investors with the certainty we need to get on with delivering this once in many generations infrastructure upgrade." As reported in the Troubled Company Reporter-Asia Pacific on Nov. 8, 2013, Stuff.co.nz said credit ratings agency Standard & Poor's expects Chorus will breach its banking covenants within two years unless it receives help. Stuff.co.nz said that fresh evidence has emerged both for and against the contention that Chorus could absorb a NZ$10 reduction in the price it can charge for copper broadband without government intervention. According to Stuff.co.nz, Standard & Poor's and Moody's are both reviewing Chorus's credit ratings after the Commerce Commission on November 5 ordered a 23 per cent cut in wholesale copper broadband pricing. Chorus Ltd -- http://chorus.co.nz/-- is a telecommunications utility provider. The Company provides services, such as network access services, property co-location services, field services and roadmap of services. The Company's network access services provide direct access to Chorus local access network. It connects around 1.8 million New Zealand homes and businesses. Its property portfolio includes local telephone exchanges, roadside cabinets, mobile masts and radio towers. The Company manages security and access to its buildings and infrastructure across the country. The Company installs or repairs end customers' phone or Internet services. The phone and Internet companies use its network to deliver services. The Company also provides services to radio operators or organizations that need wireless communications. These organizations include TeamTalk, NZ Police, Civil Defense organizations and broadcasters. REYNOLDS GROUP: Moody's Rates Senior Secured Credit Facilities B1 ----------------------------------------------------------------- Moody's Investors Service assigned B1 ratings to the proposed senior secured credit facilities and proposed senior secured term loans of Reynolds Group Holdings Inc. Additionally, Moody's 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 new facilities will be used to refinance the existing facilities. Moody's took the following actions: Reynolds Group Holdings Limited -- Affirmed B3 corporate family rating -- Affirmed B3-PD probability of default rating Reynolds Group Holdings Inc. -- Affirmed $120 million senior secured revolving credit facility due 11/05/2014, B1 (LGD2, 25%) (to be withdrawn at the close of the transaction) -- Affirmed 80 million senior secured revolving credit facility due 11/05/2014, B1 (LGD2, 25%) (to be withdrawn at the close of the transaction) -- Assigned new $120 million senior secured revolving credit facility due December 2018, B1 (LGD2, 25%) -- Assigned new 80 million senior secured revolving credit facility due December 2018, B1 (LGD2, 25%) -- Affirmed $2,235 million senior secured term loan due 9/28/2018, B1 (LGD2, 25%) (to be withdrawn at the close of the transaction) -- Affirmed 300 million senior secured term loan due 9/28/2018, B1 (LGD2, 25%) (to be withdrawn at the close of the transaction) -- Assigned new $2,235 million senior secured term loan due December 2018, B1 (LGD2, 25%) -- Assigned new 300 million senior secured term loan due December 2018, B1 (LGD2, 25%) Beverage Packaging Holdings (Luxembourg) II S.A. -- Affirmed 480 million 8.000% senior unsecured notes due 12/15/2016, Caa2 (LGD 5, 79%) (to be withdrawn at the close of the transaction) -- Affirmed subordinated notes, Caa2 (LGD6, 96%) Beverage Packaging Holdings (Luxembourg) II S.A. and Beverage Packaging Holdings II Issuer Inc. (USA) -- Affirmed senior unsecured notes due 12/15/2016, Caa2 (LGD 5, 79%) 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 $1.5 billion in cash on hand as of September 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. ================= S I N G A P O R E ================= GLOBAL A&T: Moody's Puts B2 Ratings on Review for Downgrade ----------------------------------------------------------- Moody's Investors Service has placed Global A&T Electronics Ltd.'s (GATE's) B2 corporate family and its B2 first lien senior secured ratings on review for downgrade. Ratings Rationale: Moody's action follows the company's confirmation that it had received a notice of default from a law firm purporting to represent holders of more than 25% of the $625 million 10% senior secured notes due 2019 ("First Lien Notes"), issued on 7 February 2013, in relation to the transactions undertaken in the exchange offer. On 30 September, GATE announced the completion of an exchange offer for its entire second lien debt of $543 million due 2015 for $502.3 million of additional 10% first lien senior secured notes due 2019 ("Additional Notes"). The notice of default states that in issuing the Additional Notes, elevating the lien priority of the holders of the second lien loans as well as amending an intercreditor agreement to allow such transactions, GATE has violated the covenants prohibiting such actions. According to the notice of default, 30 days after the receipt of the notice, the defaults specified in the notice shall be considered events of default under the First Lien Indenture. This 30-day period will expire on 7 December 2013. "Our review for downgrade reflects uncertainties surrounding the implications of the notice of default for all current bondholders as well as the next steps in this process. These next steps could include an unwinding of the exchange offer or litigation, which may extend over a lengthy period with an uncertain outcome," says Annalisa Di Chiara, who is also Lead Analyst for GATE. GATE has publically stated that the issuance of the Additional Notes was in accordance with its rights and obligations under the relevant agreements and applicable law, and are thus contesting the declaration of default. "This event also increases ratings pressure on GATE's fundamental credit quality. At a time of weakening financial performance, Moody's believes this matter will divert management's attention and resources away from the company's core operating activities and may delay any potential improvement in its performance," says Di Chiara. Moody's believes that a lack of visibility for market demand and uncertainty regarding GATE's revenue and earnings recovery will result in EBITDA of $180-$200 million at end-2013, causing leverage to rise into the 6x range, which is high for its B2 corporate family rating. Moody's will continue to monitor the current situation and intends to complete the review before or on 7 December 2013. Ratings could be downgraded by multiple notches if the notification of default results in an unwinding of the transaction and thus creates significant medium term liquidity risk, given that the initial second-lien bonds matured in 2015. A multi-notch downgrade may also occur in a scenario of heightened credit risk, including confirmation of default under the covenants or an extended period of uncertainty due to litigation. Moody's would also consider downgrading GATE's ratings if (1) the company's balance-sheet liquidity falls below $150 million owing to higher-than-expected cash burn or dividends; (2) its profitability declines, leading to a further deterioration in the company's financial profile, such that debt/EBITDA remains at or above 6.0x or EBITDA margins fall below 25%; (3) there is further evidence of a weakening competitive position or loss of market share. Global A&T Electronics Ltd is a leading provider of semiconductor assembly and test services operating under the name UTAC with manufacturing facilities in Singapore, Taiwan, Thailand and China. UTAC was privatized through a leverage buy-out by a private equity group led by TPG Capital (47.7%) and Affinity Equity Partners (47.7%) in October 2007. ==================== S O U T H K O R E A ==================== * SOUTH KOREA: Large Shipping Groups Struggle to Stay Afloat ------------------------------------------------------------ Song Jung-a in Seoul at FT.com reports that South Korea's big shipping companies are struggling to stay afloat under mounting debts as the industry's downturn worsens their cash flow, casting doubts over their long-term survival. FT.com relates that the Asian country's three biggest shipping companies -- Hanjin Shipping, Hyundai Merchant Marine and STX Pan Ocean -- face more than KRW3 trillion (US$2.8 billion) of maturing debts over the next two years. Their financial plights were highlighted by numbers from both Hanjin and Hyundai that showed their debt outweighing their equity by about 10 to one as of the end of September, FT.com says. According to FT.com, such a predicament led to the recent resignation of Kim Young-min, Hanjin's chief executive, after the company reported heavy losses for the past three years. FT.com relates that Hanjin said Mr. Kim had stepped down to take responsibility for the losses and a delay in receiving financial support from creditors. FT.com notes that following their aggressive debt-fuelled expansion before the 2008 global financial crisis, South Korean shipping companies have grappled with higher financial costs than their overseas rivals. The subsequent industry downturn has dragged them into the red, as freight rates contract due to low demand and overcapacity, the report notes. FT.com says STX Pan Ocean, the country's largest bulk carrier, filed for court protection in June, unable to overcome the mounting debt burden. The three shippers all widened losses in the third quarter compared with a year earlier because of increasing interest payments, FT.com notes. The report says Hyundai and Hanjin are likely to continue to post losses next year as the industry shows few signs of recovery, while STX is expected to become profitable for the first time in four years thanks to the court-led restructuring. =============== X X X X X X X X =============== * BOND PRICING: For the Week Nov. 11 to Nov. 15, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- AUSTRALIAN POSTAL 5.50 11/13/23 AUD 97.20 BOART LONGYEAR MA 7.00 04/01/21 USD 73.00 BOART LONGYEAR MA 7.00 04/01/21 USD 73.00 COMMONWEALTH BANK 1.50 04/19/22 AUD 72.41 EXPORT FINANCE & 0.50 06/15/20 NZD 74.00 GRIFFIN COAL MINI 9.50 12/01/16 USD 74.63 GRIFFIN COAL MINI 9.50 12/01/16 USD 74.63 MIRABELA NICKEL L 8.75 04/15/18 USD 34.88 MIRABELA NICKEL L 8.75 04/15/18 USD 35.00 NEW SOUTH WALES T 0.50 09/14/22 AUD 68.97 NEW SOUTH WALES T 0.50 12/16/22 AUD 68.09 NEW SOUTH WALES T 0.50 03/30/23 AUD 67.12 NEW SOUTH WALES T 0.50 02/02/23 AUD 67.64 NEW SOUTH WALES T 0.50 11/18/22 AUD 68.33 NEW SOUTH WALES T 0.50 10/07/22 AUD 68.74 NEW SOUTH WALES T 0.50 10/28/22 AUD 68.53 PALADIN ENERGY LT 3.63 11/04/15 USD 74.08 PALADIN ENERGY LT 6.00 04/30/17 USD 68.74 TREASURY CORP OF 0.50 03/03/23 AUD 68.34 TREASURY CORP OF 0.50 11/12/30 AUD 44.61 TREASURY CORP OF 0.50 08/25/22 AUD 69.75 CHINA ----- CHINA GOVERNMENT 1.64 12/15/33 CNY 65.21 INDONESIA --------- DAVOMAS INTERNATI 11.00 12/08/14 USD 24.38 DAVOMAS INTERNATI 11.00 12/08/14 USD 24.38 INDIA ----- 3I INFOTECH LTD 5.00 04/26/17 USD 25.84 CORE EDUCATION & 7.00 05/07/15 USD 27.75 COROMANDEL INTERN 9.00 07/23/16 INR 15.13 DR REDDY'S LABORA 9.25 03/24/14 INR 4.98 GTL INFRASTRUCTUR 2.53 11/09/17 USD 40.21 HPCL-MITTAL PIPEL 4.00 10/05/22 INR 64.39 INDIA GOVERNMENT 0.24 01/25/35 INR 16.97 INDIA GOVERNMENT 5.87 08/28/22 INR 73.84 JCT LTD 2.50 04/08/11 USD 20.00 MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00 PRAKASH INDUSTRIE 5.25 04/30/15 USD 51.25 PRAKASH INDUSTRIE 5.63 10/17/14 USD 55.75 PYRAMID SAIMIRA T 1.75 07/04/12 USD 1.00 REI AGRO LTD 5.50 11/13/14 USD 69.99 REI AGRO LTD 5.50 11/13/14 USD 69.99 SHIV-VANI OIL & G 5.00 08/17/15 USD 19.88 SUZLON ENERGY LTD 5.00 04/13/16 USD 47.06 SUZLON ENERGY LTD 7.50 10/11/12 USD 65.88 JAPAN ----- ELPIDA MEMORY INC 0.50 10/26/15 JPY 9.88 ELPIDA MEMORY INC 0.70 08/01/16 JPY 9.75 ELPIDA MEMORY INC 2.10 11/29/12 JPY 11.38 ELPIDA MEMORY INC 2.29 12/07/12 JPY 11.38 ELPIDA MEMORY INC 2.03 03/22/12 JPY 11.38 JAPAN EXPRESSWAY 0.50 03/18/39 JPY 70.62 JAPAN EXPRESSWAY 0.50 09/17/38 JPY 71.14 TOKYO ELECTRIC PO 2.37 05/28/40 JPY 67.13 TOKYO ELECTRIC PO 1.96 07/29/30 JPY 73.63 PHILIPPINES ----------- BAYAN TELECOMMUNI 13.50 07/15/06 USD 22.75 BAYAN TELECOMMUNI 13.50 07/15/06 USD 22.75 SOUTH KOREA ----------- EXPORT-IMPORT BAN 0.50 10/23/17 TRY 69.22 EXPORT-IMPORT BAN 0.50 09/28/16 BRL 72.28 EXPORT-IMPORT BAN 0.50 10/27/16 BRL 71.60 EXPORT-IMPORT BAN 0.50 01/25/17 TRY 73.93 EXPORT-IMPORT BAN 0.50 08/10/16 BRL 74.27 EXPORT-IMPORT BAN 0.50 12/22/17 BRL 62.81 EXPORT-IMPORT BAN 0.50 11/21/17 BRL 63.06 EXPORT-IMPORT BAN 0.50 11/28/16 BRL 71.04 EXPORT-IMPORT BAN 0.50 12/22/17 TRY 67.14 EXPORT-IMPORT BAN 0.50 12/22/16 BRL 70.09 KIBO GREEN HI-TEC 10.00 12/21/15 KRW 31.10 SINBO SECURITIZAT 4.60 06/29/15 KRW 30.40 SINBO SECURITIZAT 4.60 06/29/15 KRW 30.40 SINBO SECURITIZAT 5.00 09/13/15 KRW 30.16 SINBO SECURITIZAT 8.00 02/02/16 KRW 30.13 SINBO SECURITIZAT 5.00 09/13/15 KRW 30.16 TONGYANG CEMENT & 7.50 04/20/14 KRW 65.00 TONGYANG CEMENT & 7.30 06/26/15 KRW 70.13 TONGYANG CEMENT & 7.30 04/12/15 KRW 65.00 TONGYANG CEMENT & 7.50 07/20/14 KRW 67.63 TONGYANG CEMENT & 7.50 09/10/14 KRW 67.63 SRI LANKA --------- SRI LANKA GOVERNM 9.00 06/01/43 LKR 74.55 SRI LANKA GOVERNM 5.35 03/01/26 LKR 58.50 SRI LANKA GOVERNM 7.00 10/01/23 LKR 70.11 SRI LANKA GOVERNM 8.00 01/01/32 LKR 70.94 SINGAPORE --------- BAKRIE TELECOM PT 11.50 05/07/15 USD 27.50 BAKRIE TELECOM PT 11.50 05/07/15 USD 26.75 BLD INVESTMENTS P 8.63 03/23/15 USD 59.75 BUMI CAPITAL PTE 12.00 11/10/16 USD 61.50 BUMI CAPITAL PTE 12.00 11/10/16 USD 61.38 BUMI INVESTMENT P 10.75 10/06/17 USD 60.75 BUMI INVESTMENT P 10.75 10/06/17 USD 60.91 ENERCOAL RESOURCE 9.25 08/05/14 USD 54.00 INDO INFRASTRUCTU 2.00 07/30/10 USD 1.88 THAILAND -------- G STEEL PCL 3.00 10/04/15 USD 11.75 MDX PCL 4.75 09/17/03 USD 16.38 ********* 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 ***