/raid1/www/Hosts/bankrupt/TCRAP_Public/131129.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
Friday, November 29, 2013, Vol. 16, No. 237
Headlines
A U S T R A L I A
CRI CHATSWOOD: Chinese Buys Shopping Center for AUD80 Million
KITSET KITCHENS: Assets Sell at Auction
ZEN PROJECTS: Goes Into Liquidation
* Closure of Auto Factories Leave AUD1-Bil. Unfunded Entitlements
C H I N A
CHINA GINSENG: Incurs $256,000 Net Loss in Quarter ended Sept. 30
* Fitch: Harder for B-Rated Chinese Developers to Get BB Rating
H O N G K O N G
LEHMAN BROTHERS: HKMA Reports on Banking Complaint Cases
I N D I A
A TO Z LOGISTICS: CRISIL Assigns 'BB-' Rating to INR250MM Loan
ALANKIT ASSIGNMENTS: CARE Rates INR66.79r Loans at 'BB+'
ANINDITA TRADES: CRISIL Puts 'BB+' Ratings on Withdrawal Notice
ARHAM COLLOIDS: ICRA Assigns 'B+' Rating to INR7cr Term Loans
ASHIRVAD FOOD: CRISIL Cuts Ratings on INR145.6MM Loans to 'C'
AVLON CERAMIC: CARE Reaffirms 'BB' Rating on INR9.44cr Loans
B.S.E.S. (INDIA): CARE Reaffirms 'BB+' Rating on INR7.89cr Loans
BIOTECH INT'L: CRISIL Lowers Ratings on INR173MM Loans to 'BB-'
BLUEART GRANITO: CARE Revises Rating on INR20.84cr Loan to 'B+'
CANAAN ENG'G: CRISIL Reaffirms 'D' Ratings on INR250MM Loans
CAPRICORN LOGISTICS: ICRA Suspends BB+/A4 Rating on INR70cr Loan
CHENNIAPPA YARN: ICRA Raises Ratings on INR58.59cr Loans to 'BB-'
COAL BENEFICATION: CRISIL Cuts Rating on INR75MM LT Loan to 'D'
CRIMSON METAL: CARE Revises Rating on INR11.65cr Loan to 'B'
DASHMESH CABLES: ICRA Places 'BB' Rating on INR13.75cr Loans
DAYAWATI BISHWANATH: CRISIL Puts 'BB' Rating on INR80MM Loans
DYNOMERK CONTROLS: CRISIL Assigns 'B' Ratings to INR74MM Loans
EAST WEST: ICRA Reaffirms 'BB-' Rating on INR7cr Loan
FOURCEE INFRA: ICRA Revises/Suspends BB- Ratings on INR250cr Loan
GLOBAL AUTOTECH: ICRA Suspends 'BB+' Rating on INR110cr Loans
GMR CHHATTISGARH: ICRA Assigns 'BB+' Rating to US$101MM Loan
GOOD LUCK: ICRA Suspends 'B' Rating on INR30cr LT Loans
INDIAN GEMS: ICRA Suspends 'BB' Rating on INR35cr Loan
INDO SILICON: ICRA Reaffirms 'B-' Rating on INR6.5cr Loans
INDORE COMPOSITE: ICRA Suspends 'B+/A4' Rating on INR15.18cr Loan
INDSUR GLOBAL: CARE Assigns 'BB' Rating to INR22.87cr Loans
JNV VIRA: ICRA Lowers Ratings on INR15.85cr Loans to 'D'
KAMLESH JEWELLERS: CRISIL Reaffirms BB- Ratings on INR120MM Loans
KOX MED: ICRA Suspends 'BB+' Rating on INR7cr Cash Credit
KRISH CEREALS: ICRA Rates INR8cr LT Loans at 'B'
LAHS GREEN: ICRA Assigns 'SP 3C' Grading
LAXMI COTTON: CRISIL Reaffirms 'B+' Rating on INR70MM Loan
MAA MAHAMAYA: CARE Rates INR17.36cr Bank Loans at 'BB-'
OFFSHORE MARINETECH: CRISIL Reaffirms 'B+' INR75MM Loan Ratings
PHOENIX INT'L: ICRA Upgrades Rating on INR63cr LT Loans to 'BB'
RASHMI SPONGE: CRISIL Ups Ratings on INR463.5MM Loans to 'B+'
REGENT EDUCATION: CRISIL Assigns 'D' Rating to INR50MM Term Loan
RLJ MULTIGRAIN: ICRA Assigns 'B+' Ratings to INR11.93cr Loans
S.I. PATEL: CRISIL Reaffirms 'B+' Ratings on INR100MM Loans
S&S TECHNOCRATS: ICRA Suspends 'B' Rating on INR9.5cr Loans
SAINATH COTTON: CRISIL Reaffirms 'B' Ratings on INR51.7cr Loans
SANJOO PRINTS: ICRA Assigns 'D' Ratings to INR7.73cr Loans
SIDDHI TEXCHEM: CARE Assigns 'B' Rating to INR11.71cr Loans
SKM STEELS: ICRA Cuts Ratings on INR288.28cr Loans to 'BB+'
SRI MATA: CRISIL Reaffirms 'B' Ratings on INR550MM Loans
SRI SRINIVASA: CRISIL Assigns 'B' Ratings to INR100MM Loans
STANFAB APPARELS: ICRA Reaffirms 'BB+' Rating on INR3.84cr Loans
STAR ROYAL: CRISIL Assigns 'BB-' Rating to INR150MM Loan
SUYASH CHEMICALS: CARE Revises Rating on INR35.2cr Loan to 'BB-'
TIRUPATHI YARNTEX: ICRA Reaffirms C+ Ratings on INR35.35cr Loans
TRINITY ENGINEERS: CRISIL Cuts Ratings on INR302.5MM Loan to BB-
TULSI DYE: CRISIL Raises Ratings on INR127.5MM Loans to 'BB+'
V-TEX OVERSEAS: ICRA Assigns 'BB' Rating to INR5cr Loans
VARAD AGRI: ICRA Reaffirms 'BB' Ratings on INR20cr Loans
VISHAL CABLES: ICRA Assigns 'BB' Ratings to INR19.5MM Loans
I N D O N E S I A
MODERNLAND REALTY: Moody's Assigns 'B2' Corporate Family Rating
J A P A N
ORIX-NRL: Moody's Downgrades Class D Notes Rating to Ca(sf)
N E W Z E A L A N D
CHORUS LTD: Risks Default on Loans to Build NZ Broadband Network
NZF MONEY: Serious Fraud Office Closes Investigation
SOLID ENERGY: Bank of Tokyo Opposes Liquidation of Coal Company
TACHIKAWA FOREST: Workers May Get Pay Before Christmas
P H I L I P P I N E S
RURAL BANK OF ALAMINOS: PDIC Advises Borrowers to Pay Loans
S O U T H K O R E A
* SOUTH KOREA: Banks' Loan Delinquency Ratio Rises in October
X X X X X X X X
* Cash Flow Biggest Challenge for Asia-Pacific Businesses
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
CRI CHATSWOOD: Chinese Buys Shopping Center for AUD80 Million
-------------------------------------------------------------
Ben Wilmot at The Australian reports that a Chinese company known
for buying distressed property across Asia has bought the half-
completed shopping precinct at the AUD80 million Chatswood
Transport Interchange on Sydney's north shore from Commonwealth
Bank.
The Australian says the centre's prime location means the buyer
-- China-based company and borrower Changzhou Hope Offices
Equipment and its guarantor Zhuang Zhongyi -- could transform the
centre into a key part of the complex.
But the deal could be headed for further legal action as the
Chinese group faces off with a group that introduced it to the
property, the report says. According to the report, the asset,
under the control of receivers PPB who were called in by
Commonwealth Bank in the wake of developer CRI collapsing, was
previously subject of another legal battle in which the original
developer, Precision Group, walked away with a AUD28 million
settlement.
Now Sydney-based Commercial Mortgage Trade has lodged caveats over
the Chatswood centres. The latest civil dispute has arisen between
CMT associate, Tripod Funds Management, and the Chinese group.
CRI Chatswood Pty Ltd, which is involved in a public-private
partnership with the New South Wales Government for a AU$360
million Chatswood transport interchange project, went into
receivership in October 2008.
KITSET KITCHENS: Assets Sell at Auction
---------------------------------------
ABC News reports that the main plant and equipment belonging to
Kitset Kitchens have been sold at auction.
ABC News says the company was placed into liquidation early this
month and 30 jobs were lost.
The auction is part of the process to recoup money to pay secured
creditors and employee benefits, the report says.
The business still has properties in Melbourne that need to be
sold, ABC News notes.
According to the report, liquidator Hamish McKinnon said more than
200 people who had ordered kitchens are begin treated as unsecured
creditors and are unlikely to get their money back but it is still
expected that employees of the business will receive their
benefits and that secured creditors will be paid.
Kitset Kitchens is a Hamilton-based kitchen manufacturer.
ZEN PROJECTS: Goes Into Liquidation
-----------------------------------
Nicola Trotman at Property Observer reports that Zen Projects
Group Pty Ltd, trading under Zen Homes, has gone into liquidation.
The business was placed under external administration on
November 25, the report says.
Property Observer relates that any consumers are asked to contact
Fair Trading on 13 32 20 to find out about the impact of the
liquidation on their circumstances.
Affected consumers may give their details to Fair Trading so they
can be kept up-to-date regarding developments, the report adds.
* Closure of Auto Factories Leave AUD1-Bil. Unfunded Entitlements
-----------------------------------------------------------------
Mark Hawthorne at The Canberra Times reports that the closure of
Holden and Toyota's production in Australia would leave the
federal government with about AUD1 billion in unfunded leave and
redundancy entitlements for parts industry workers.
Many auto businesses will not be able to afford these payouts, so
the cost will default to taxpayers, the report says.
The Canberra Times relates that most of those payments would go to
Victorian workers as experts warn the state would face the biggest
single blow to its economy since the collapse of Ansett in 2001.
According to the report, insolvency experts said the taxpayer-
funded federal entitlements guarantee would have to cover the
payouts of parts industry workers made redundant.
The parts industry employs 18,000 people in Victoria and 6,000 in
South Australia, and most are expected to lose their jobs if
Holden or Toyota follow Ford and pull the pin on local
manufacturing, The Canberra Times relays.
Insolvency expert PPB Advisory estimates payouts would cost an
average AUD64,000 for each parts industry worker, according to The
Canberra Times.
"Many auto businesses will not be able to afford these payouts, so
the cost will default to taxpayers, as the majority of the claims
are now guaranteed in legislation," the report quotes
PPB partner Stephen Longley as saying.
The Canberra Times notes that Mr. Longley has overseen liquidation
of four Victorian parts suppliers, a total of 1,000 jobs, in
recent years. Mr. Longley said the average redundancy payout for
each of the 1,000 was AUD64,000, the report says.
"Multiply that by 20,000 workers, and it's almost
AUD1.3 billion," Mr. Longley, as cited The Canberra Times, said.
=========
C H I N A
=========
CHINA GINSENG: Incurs $256,000 Net Loss in Quarter ended Sept. 30
-----------------------------------------------------------------
China Ginseng Holdings, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $255,882 on $62,393 of revenue for the three months
ended Sept. 30, 2013, as compared with a net loss of $1.39 million
on $503,772 of revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $5.58
million in total assets, $6.95 million in total liabilities and a
$1.37 million total stockholders' deficit.
Going Concern
"As indicated in the accompanying financial statements, the
Company had net losses of $255,882 and $1,393,202 for the three
months ended September 30, 2013 and 2012, respectively, and an
accumulated deficit of $9,663,295 as of September 30, 2013, and
there are existing uncertain conditions the Company foresees
relating to its ability to obtain working capital and operate
successfully. Management's plans include the raising of capital
through the debt and equity markets to fund future operations and
the generation of revenue through its businesses. Failure to
raise adequate capital and generate adequate sales revenue could
result in the Company having to curtail or cease operations.
"Additionally, even if the Company does raise sufficient capital
to support its operating expenses and generate adequate revenues,
there can be no assurance that the revenue will be sufficient to
enable the Company to develop business to a level at which it will
generate profits and cash flow from operations. These matters
raise substantial doubt about the Company's ability to continue as
a going concern," the Company said in the Quarterly Report.
A copy of the Form 10-Q is available for free at:
http://is.gd/uJhVXV
About China Ginseng
Changchun City, China-based China Ginseng Holdings, Inc., conducts
business through its four wholly-owned subsidiaries located in
China. The Company has been granted 20-year land use rights to
3,705 acres of lands by the Chinese government for ginseng
planting and it controls, through lease, approximately 750 acres
of grape vineyards. However, recent harvests of grapes showed
poor quality for wine production which indicates that the
vineyards are no longer suitable for planting grapes for wine
production. Therefore, the Company has decided not to renew its
lease for the vineyards with the Chinese government upon
expiration in 2013 and, going forward, it intends to purchase
grapes from the open market in order to produce grape juice and
wine.
The Company reported a net loss of $3.1 million on $2.7 million of
revenues for the nine months ended March 31, 2013, compared with a
net loss of $1.1 million on $3.1 million of sales for the nine
months ended March 31, 2012. "The net loss was primarily due to
the decreased whole sales and increased cost of sales as a
percentage of revenue and the inventory impairment," the Company
said.
* Fitch: Harder for B-Rated Chinese Developers to Get BB Rating
---------------------------------------------------------------
Fitch says that it is becoming increasingly difficult for Chinese
homebuilders in the 'B' rating category (those rated 'B-', 'B' and
'B+') to improve their business profiles to be upgraded to the
'BB' rating category.
This is due to stiffer competition for land necessary to increase
their scale while maintaining profitability. In addition, 'B'-
category homebuilders are also disadvantaged in access to capital
to expand their businesses.
The key difference between 'B'-category and 'BB'-category
homebuilders is that the higher-rated companies have larger scale
and greater diversification that make them more resilient in the
event of a downturn. . As a result, many 'B'-category homebuilders
are aggressively trying to grow their scale and diversification to
reduce their risk profile.
However, there are significant challenges to this process. This is
because many of the larger companies, typically rated investment
grade or in the 'BB'-category, are entrenched in a substantial
portion of the market, making it more difficult for smaller
players to achieve the growth trajectory that they enjoyed five to
eight years ago.
This can be best seen in access to good quality land. Because of
their greater geographical diversification, the larger players
have better experience and knowledge of multiple regional markets,
which give them an advantage in identifying and acquiring better
located land. Smaller players trying to expand outside of their
core markets typically have to buy land at auctions, where
premiums have continued to rise due to competitive bidding.
Smaller players expanding outside their core markets also
typically price their homes competitively to establish themselves
in the new markets, where their brands may not be well-recognised.
In addition, larger players also have the advantage of having
cheaper and better access to offshore funding and better operating
cost advantages due to economies of scale. In an environment where
the entire industry is facing margin pressure, Fitch believes
smaller players have fewer options in trying to defend their
margins.
CIFI Group (CIFI) is the only homebuilder Fitch rates at 'B+' with
a Positive Outlook. This is mainly because the company has already
acquired enough land to achieve the scale and diversification that
would lead to a 'BB-' profile. But even for CIFI, the progress
further up the 'BB' rating category will be challenging.
================
H O N G K O N G
================
LEHMAN BROTHERS: HKMA Reports on Banking Complaint Cases
--------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced Nov. 15 the
progress of its banking complaint cases at the end of October
2013. These cases include customer complaints about banking
products or services as well as other cases referred by the
banking departments and other regulators.
In October 2013, 105 cases were received and 158 cases were
completed. As at end October, the handling of 656 cases is in
progress.
A table summarizing the progress of the banking complaint
cases can be accessed for free at http://is.gd/FicPDF
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
=========
I N D I A
=========
A TO Z LOGISTICS: CRISIL Assigns 'BB-' Rating to INR250MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facility of A TO Z Logistics Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 250 CRISIL BB-/Stable
The rating reflects the extensive experience of ATZL's promoters
in the logistics business, its established relationships with
major customers, and its healthy return on capital employed
(RoCE). These rating strengths are partially offset by the
company's weak financial risk profile, and its working-capital-
intensive operations.
Outlook: Stable
CRISIL believes ATZL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if ATZL achieves a substantial increase
in its scale of operations and profitability, along with efficient
working capital management and improvement in its financial risk
profile. Conversely, the outlook maybe revised to 'Negative' in
case of sustained pressure on ATZL's revenues and profitability,
or larger-than-expected working capital requirements, leading to
deterioration in its business risk profile. Further weakening of
the company's financial risk profile, most likely due to
incremental working capital requirements or larger-than-expected
debt-funded capital expenditure, may also result in a 'Negative'
outlook.
ATZL was originally established in 2004 as A TO Z Logistics Pvt
Ltd; this company was reconstituted as a closely held public
limited company with the present name on April 4, 2013. ATZL
provides logistics services such as cargo transportation to
customers across India. The company is mainly engaged in
transportation on a contract basis. ATZL is managed by Mr. Sanjeev
Jindal, Mr. Sita Ram Jindal, and Ms. Sunita Jindal.
ATZL reported a profit after tax (PAT) of INR8.5 million on net
sales of INR922 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.8 million on net
sales of INR752 million for 2011-12.
ALANKIT ASSIGNMENTS: CARE Rates INR66.79r Loans at 'BB+'
--------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of Alankit Assignments Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 66.79 CARE BB+ Assigned
Facilities
Short-term Bank 18.50 CARE A4+ Assigned
Facilities
Rating Rationale
The ratings of the bank facilities of Alankit Assignments Ltd are
constrained by the volatility in revenue and profitability of the
company, low returns on the Unique Identification Number (UID)
project leading to recent debt restructuring and increasing
exposure to group companies.
These constraints are, however, partially offset by the strength
derived from the experienced promoters, diversified revenue
profile and moderate solvency position of the company. The ratings
also factor in the wide branch network and strong client base of
the company.
Going forward, the ability of the company to grow while improving
its profitability margins, prudent cash flow management and future
prospects of the capital markets and e-governance projects, remain
the key rating sensitivities.
Alankit Assignments Ltd, promoted by Mr Alok Kumar Agarwal, was
incorporated in 1991 as a SEBI-registered financial services and
stock broking company. AAL is a trading and clearing member broker
registered with the National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE) under cash and future & options (F&O) segments. It
is also registered as a trading and clearing member under the
currency derivative segment with NSE, BSE, MCX-SX and United Stock
exchange of India Ltd. AAL is also a depository participant (DP)
of Central Depository Services Ltd and National Depository
Services Ltd.
Later, the company diversified into e-governance services and
offered tax information network (TIN) services, e-return and
central record-keeping services for National Pension Scheme (NPS).
The company was empanelled as an enrolment agency for UID (also
known as AADHAR) by Unique Identification Authority of India
(UIDAI) in 2010.
AAL is headquartered in New Delhi with 20 regional offices spread
across India and a representative office in Dubai. Currently, AAL
operates under two major business segments - financial services
and e-governance. During FY13 (refers to the period April 01 to
March 31), the proportion of revenues from financial services and
e-governance was 46.7% and 53%, respectively.
ANINDITA TRADES: CRISIL Puts 'BB+' Ratings on Withdrawal Notice
---------------------------------------------------------------
CRISIL has placed the rating on Anindita Trades & Investments
Ltd's cash credit and bank guarantee facility on 'Notice of
Withdrawal' for a period of 60 days upon receipt of a no-objection
certificate from the company's banker. CRISIL has withdrawn its
rating on other long-term bank facilities of Anindita at
Anindita's request and on receipt of a no-dues certificate from
the company's banker. The rating action is in line with CRISIL's
policy on withdrawal of its ratings on bank loans.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 23.2 CRISIL A4+ Notice of
Withdrawal
Cash Credit 120.0 CRISIL BB+/Stable Notice of
Withdrawal
Long-Term Loan 16.0 CRISIL BB+/Stable Withdrawal
Proposed Long-Term
Bank Loan Facility 60.8 CRISIL BB+/Stable Withdrawal
Proposed Short-Term
Bank Loan Facility 10.0 CRISIL A4+ Withdrawal
Outlook: Stable
CRISIL believes that Anindita will maintain its credit risk
profile on the back of the improved scale of its operations and
the benefits expected from the commencement of its in-house iron-
ore mining operations. The outlook may be revised to 'Positive' if
the company reports strong revenue growth, leading to more-than-
expected cash accruals, without deteriorating its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
the company incurs more than expected capital expenditure or if
the company reports significant decline in revenues and
profitability.
Incorporated in 1995, Anindita manufactures sponge iron. Its
manufacturing unit is located at Hazaribagh (Jharkhand).
ARHAM COLLOIDS: ICRA Assigns 'B+' Rating to INR7cr Term Loans
-------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR7.00 crore term
loans of Arham Colloids. ICRA has also assigned an '[ICRA]A4'
rating to the INR17.25 crore short-term bank limits of AC.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 7.00 [ICRA]B+; assigned
Short-Term Fund-
based Limits 15.00 [ICRA]A4; assigned
Short-term Non-
Fund based Limits 2.25 [ICRA]A4; assigned
The ratings factor in the small scale and limited track record of
the entity's operations; fragmented industry structure with high
competitive intensity owing to a large number of producers and
vulnerability of guar seed production to agro climatic risks. ICRA
also takes note of the concerns related to the partnership nature
of the entity as any substantial withdrawals from the partners'
capital account would adversely impact the net worth thereby
affecting the gearing levels.
The ratings, however, favourably factor in the healthy demand
prospects for guar gum powder attributable to increased
exploration activity in the oil and gas sector, limited threat
from substitute products in the aforementioned sector and
proximity of manufacturing facility to raw material supply.
Arham Colloids (AC) is a partnership firm based in Hisar and is
engaged in the manufacture of guar gum powder from guar splits.
The firm is owned and managed by two families of Adampur
(Haryana)? Mr. Vijay Kumar and Mr. Sushil Kumar (real brothers)
represent one business group with 50% share in partnership while,
Mr. Anjani Kumar and Mr. Krishan Kumar (cousins) represent the
second business group having the other 50% share. Incorporated in
January 2012, Arham Colloids commenced commercial production of
technical (industrial) grade guar gum powder in February 2013. The
firm has a capacity to produce 4800 metric tonnes per annum (MTPA)
of guar gum powder.
Recent Results
For the year ended March 31, 2013 (February 2013-March 2013), AC
reported loss of INR0.66 crore at an operating income of INR0.71
crore.
ASHIRVAD FOOD: CRISIL Cuts Ratings on INR145.6MM Loans to 'C'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank loan facilities of
Ashirvad Food Products Pvt Ltd to 'CRISIL C/CRISIL A4' from
'CRISIL BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3.2 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 139.8 CRISIL C (Downgraded from
'CRISIL BB/Stable')
Letter of Credit 1.2 CRISIL A4 (Downgraded from
'CRISIL A4+')
Term Loan 5.8 CRISIL C (Downgraded from
'CRISIL BB/Stable')
The rating downgrade reflects instances of delay by AFP in
servicing its term loans contracted from West Bengal Industrial
Development Corporation (WBIDC, not rated by CRISIL). The delays
have resulted from AFP's weak liquidity due to its large working
capital requirements.
The ratings reflect AFP's weak financial risk profile, and large
working capital requirements. These weaknesses are partially
offset by the company's established market position in the wheat-
based products market in West Bengal, and a strong customer base.
AFP, incorporated in 2003, manufactures wheat products such as
atta, maida, suji and bran. In July 2011, AFP's ownership changed
with the Poddar family, comprising Mr. Lalit Poddar, Mr. Jitendra
Poddar and Mr. Sarvesh Poddar, wholly acquiring AFP. The company
has a manufacturing facility in Purulia (West Bengal).
AVLON CERAMIC: CARE Reaffirms 'BB' Rating on INR9.44cr Loans
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Avlon Ceramic Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.44 CARE BB Reaffirmed
Facilities
Short-term Bank 1.00 CARE A4 Reaffirmed
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Avlon Ceramic
Private Limited continue to be constrained on account of its
modest scale of operations in a highly competitive ceramic tile
industry coupled with susceptibility of its profitability to the
fluctuations in raw material and fuel prices, moderate
profitability margins, leveraged capital structure and modest debt
coverage & liquidity indicators. The reaffirmation also factors in
the decline in the turnover and net profit margin as well as
deterioration in the debt coverage and liquidity indicators during
FY13 (refers to the period April 1 to
March 31).
The ratings, however, continue to derive strength from the vast
experience of the promoters in the ceramic business and being
located in the ceramic tile hub with easy availability of raw
materials, power and fuel.
ACPL's ability to further improve its scale of operations along
with the improvement in profitability and increase its market
presence in light of increasing competition in the sector would
remain the key rating sensitivity.
Incorporated in 2009, Morbi-based (Gujarat) ACPL, a part of the
Icon group of Morbi, is engaged in the manufacturing of glaze
ceramic wall tiles of various sizes mainly 300x600mm. ACPL is
promoted by Mr Bhavesh Faldu, Mr Mayank Faldu, Mr Sunil Sarodia
and Mr Priyesh Sarodia. The promoters of ACPL have wide experience
in tile industry through their other units, namely Evershine
Ceramics (manufacturing wall tiles); Icon Ceramic Limited
(manufacturing floor tiles) and Icon Granito Private Limited
(manufacturing vitrified tiles) (Rated: CARE BB/ CARE A4,
Reaffirmed in December 2012). ACPL's manufacturing facility is
located in Morbi, Rajkot district, which is the ceramic hub of
Gujarat.
The company started its manufacturing operations during April
2010. It has an installed capacity of manufacturing 36,000 Metric
Tonnes per Annum (MTPA) of digitally printed ceramic glazed wall
tiles as on March 31,2013 and sells all its products under the
brand name 'Emigres.
During FY13, ACPL reported a total operating income (TOI) of
INR38.01 crore (FY12: INR42.51 crore) and the profit after tax of
INR0.78 crore (FY12: INR1.37 crore). During H1FY14 (provisional)
ACPL has achieved TOI of INR22.82 crore.
B.S.E.S. (INDIA): CARE Reaffirms 'BB+' Rating on INR7.89cr Loans
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
B.S.E.S. (India) Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.89 CARE BB+ Reaffirmed
Facilities
Short-term Bank 0.83 CARE A4+ Reaffirmed
Facilities
Rating Rationale
The ratings continue to remain constrained on account of the
financial risk profile of B.S.E.S. (India) Private Limited marked
by low profitability margins, moderately leveraged capital
structure and weak liquidity indicators.
The ratings, however, derive strength from the promoters'
experience, exclusive dealership of reputed mining and
construction Original Equipment Manufacturers (OEMs), its
established service network and diversified revenue stream.
The ability of the company to improve its financial risk profile
and efficient management of working capital are the key ratings
sensitivities.
BSES was set up as a proprietorship concern in 1969 as M/s Bharat
Spares & Engine Services, which was converted into a private
limited company and the name was changed to its current form in
1995. BSES is engaged in the sales and service of road
construction equipments, mining equipments, industrial pumps,
diesel engines and pneumatic operated systems. BSES has exclusive
dealership of reputed engineering, mining and construction OEMs,
namely, Kirloskar Oil Engines Ltd, Deutz Engines, Kobelco
Construction Equipments India Pvt Ltd, Atlas Copco (India)
Limited, Allison Transmission System and Kirloskar Brothers
Limited. Apart from the above, BSES is also engaged into operating
and maintenance (O&M) of Heavy Fuel Oil(HFO) based five power
plants ranging from 1.2 MW to 5 MW located in states of Rajasthan
(1), Haryana (2), and Uttar Pradesh (2). Furthermore in FY13
(refers to the period April 1 to March 31), the company
entered into an agreement with ACL for O&M of ACL's equipments at
Kayad mines of Hindustan Zinc Limited.
BSES owns a service center-cum-showroom of 23,000 sq ft area at
Udaipur and has six branch offices within Rajasthan. The company's
facility at Udaipur is ISO 9001:2008 certified, for the sales and
service of equipments and spare parts.
During FY13, BSES reported a total income of INR38.59 crore (FY12:
INR28.80 crore), with a PAT of INR0.65 crore (FY12: INR0.50
crore).
BIOTECH INT'L: CRISIL Lowers Ratings on INR173MM Loans to 'BB-'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Biotech International Ltd to 'CRISIL BB-/Negative/CRISIL A4' from
'CRISIL BB+/Stable/ CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 115 CRISIL BB-/Negative
(Downgraded from 'CRISIL
BB+/Stable')
Letter of Credit 65 CRISIL A4 (Downgraded from
'CRISIL A4+')
Proposed Long-Term
Bank Loan Facility 58 CRISIL BB-/Negative
(Downgraded from 'CRISIL
BB+/Stable')
The rating action reflect CRISIL's belief that BIL's financial
risk profile will continue to remain under pressure over the
medium term on account of the continued pressure on the company's
profitability coupled with highly working-capital-intensive
operations.
BIL's revenue declined to INR312 million in 2012-13 (refers to the
financial year, April 1 to March 31) from INR355 million in 2011-
12 while the company incurred operating losses in 2012-13 as
compared with 5.6 per cent operating profit in 2011-12. BIL
reported lower-than-expected revenue as the sales agreement it was
to sign with Clarke Mosquito Control Products Inc (Clarke) for the
long-lasting-insecticidal mosquito bed nets project, did not
materialise. The revenue decline is also attributable to delays in
floating orders by the authorised agents, affecting the overall
demand situation in the market. The decline in margin was on
account of increase in raw material prices and adverse foreign
exchange (forex) rate movement, which the company was not able to
pass on to the end customer. The company's debt levels increased
to INR151 million as on March 31, 2013, from INR120 million as on
March 31, 2012, despite a revenue decline due to high working
capital intensity, which also impacted BIL's gearing (1.73 times
as on March 31, 2013, as compared with 1.13 times at March 31,
2012). BIL's debt protection metrics also deteriorated with
interest coverage and net cash accruals to total debt ratios of
negative 0.45 times and negative 0.09 times, respectively, for
2012-13. The operating losses incurred in 2012-13, along with
working-capital-intensive operations, led to higher reliance on
short-term debt and also reflected in high bank limit utilisation
of 93 per cent over the 9 months through September 2013 with
frequent instances of availing ad hoc limits. CRISIL believes that
though BIL's sales will increase at a modest rate over the medium
term, margins will improve on account of price revision in 2013-14
to counter the raw material price increase and adverse forex rate
movement.
CRISIL's ratings on the bank facilities of BIL continue to reflect
the promoters' experience in the bio-chemicals industry and the
diversity in the company's product profile, which helps control
revenue concentration. These rating strengths are partially offset
by continued pressure on BIL's profitability, stagnant revenue
restricting the company's scale of operations, its large working
capital requirements, and exposure to risks inherent in the
agrochemical market in India.
Outlook: Negative
CRISIL believes that BIL's financial risk profile will remain
under pressure on account of its low profitability and large
working capital requirements over the medium term. The rating may
be downgraded in case of lower-than-anticipated revenue and
profitability, thereby impacting its accruals, or if there is
further deterioration in working capital management. Conversely,
the outlook may be revised to 'Stable' if BIL reports improvement
in its profitability and higher-than-anticipated increase in its
revenue, easing pressure on its liquidity.
BIL was incorporated in 1993, promoted by Mr. Vivek Singhal and
his two sons, Mr. Ravi Singhal and Mr. Saurabh Singhal. It
manufactures biolarvicides and bednets for the public health
sector and bio-insecticides, bio-pesticides, growth promoters, and
biofertilisers for the agriculture sector. It has a portfolio of
30 products, out of which three are for the public health sector
and the remaining are for the agriculture sector. BIL has products
for different crops and different kinds of pests.
BLUEART GRANITO: CARE Revises Rating on INR20.84cr Loan to 'B+'
---------------------------------------------------------------
CARE revises/reaffirms the ratings assigned to the bank facilities
of Blueart Granito Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 20.84 CARE B+ Revised from
Facilities CARE B
Short-term Bank 2.75 CARE B+/CARE A4 Revised
Facilities from CARE B/CARE A4
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Blueart Granito Private Limited is primarily driven by the
stabilization of operations along with healthy growth in turnover
and cash accruals during FY13 (refers to the period April 1 to
March 31) and subsequent improvement in the business operations
and financial position during H1FY14.
The ratings further continue to remain constrained on account of
the leveraged capital structure and stretched liquidity position
along with its presence in a highly fragmented tiles industry,
susceptibility of operating margins to raw material and fuel price
fluctuations and demand linkages with the cyclical real estate
sector.
The ratings continue to draw strength from the vast experience of
the promoters in the tile manufacturing industry and its presence
in the ceramic tile hub with easy access to raw material
and power and fuel.
The ability of BGPL to increase its scale of operations with
increase in market presence, improving profit margins and capital
structure along with better working capital management in light of
the competitive nature of the industry remain the key rating
sensitivities.
BGPL is a closely-held private limited company, incorporated in
July 2010 by Mr Gautam Patel and other associate promoters. BGPL
is engaged in the manufacturing of vitrified tiles which finds its
application in both commercial as well as residential buildings.
BGPL operates from its sole manufacturing facility located at
Morbi (Gujarat) which has an installed capacity of 54,600 MTPA for
the manufacturing of vitrified tiles. BGPL commenced commercial
operations from September 2011 hence FY13 was the first full year
of operations.
During FY13, BGPL reported a total income of INR39.87 crore with a
net loss of INR0.09 crore as against a total income of INR10.63
crore and a net loss of INR0.70 crore during FY12. During H1FY14,
BGPL reported a total income of INR30.32 crore with a PBT of
INR0.65 crore.
CANAAN ENG'G: CRISIL Reaffirms 'D' Ratings on INR250MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Canaan Engineering Pvt
Ltd continue to reflect CEPL's overdrawn working capital limits,
because of the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 55 CRISIL D (Reaffirmed)
Cash Credit 50 CRISIL D (Reaffirmed)
Funded Interest 13.3 CRISIL D (Reaffirmed)
Term Loan
Working Capital 60 CRISIL D (Reaffirmed)
Term Loan
Term Loan 71.7 CRISIL D (Reaffirmed)
CEPL also has a weak financial risk profile, marked by high
gearing, small net worth, and constrained financial flexibility
due to large working capital requirements. These rating weaknesses
are partially offset by the extensive industry experience of
CEPL's promoters and an established customer base.
Update
For 2012-13 (refers to financial year, April 1 to March 31),
CEPL's revenues grew by around 33 per cent over the previous year.
The company's operating profitability, however, remained low at
around 6 per cent over the two years ended March 31, 2013, mainly
because of low bargaining power and high material cost. CEPL has
working-capital-intensive operations, marked by gross current
asset (GCA) of around 217 days as on March 31, 2013, due to large
inventory, and stretched receivables. Additionally, the company
stretches its payables because of weak liquidity.
CEPL's financial risk profile has remained weak, marked by high
gearing and small net worth. Its gearing was estimated at 3.5
times as on March 31, 2013, because of constrained net worth and
large debt. CEPL's debt protection metrics were below-average,
with its net cash accruals to total debt (NCATD) and interest
coverage ratios estimated at -0.01 times and 0.45 times,
respectively, for 2012-13. The company's bank facilities have been
restructured and the repayments towards the term loans are
rescheduled to commence in October 2014. However, CEPL's liquidity
has remained weak, driven by over utilised working capital limits,
a low current ratio of 1 time and expected insufficient accruals
vis-…-vis fixed debt obligations.
CEPL, on provisional basis, reported a net loss of INR36.6 million
on net sales of INR297.5 million for 2012-13, and a net loss of
INR22.7 million on net sales of INR291.1 million for 2011-12.
Established in 2005 by Mr. Victor Baby, CEPL undertakes
fabrication of medium- to heavy-sized equipment, such as heat
exchangers, pressure vessels and columns, for the petrochemical
and fertiliser industries.
CAPRICORN LOGISTICS: ICRA Suspends BB+/A4 Rating on INR70cr Loan
----------------------------------------------------------------
ICRA has suspended the '[ICRA]BB+(Stable)/[ICRA]A4+' rating
assigned to the INR70.00 crore, bank lines of Capricorn Logistics
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
CHENNIAPPA YARN: ICRA Raises Ratings on INR58.59cr Loans to 'BB-'
-----------------------------------------------------------------
ICRA has upgraded the long-term rating assigned to the INR32.59
crore term loan facilities, INR21.00 crore fund based facilities
and INR5.00 crore fund based (sub-limit) facilities of Chenniappa
Yarn Spinners Private Limited '[ICRA]BB-' from '[ICRA]B'. The
outlook on the long-term rating is stable. ICRA has reaffirmed the
short-term rating assigned to the INR3.50 crore fund based (sub-
limit) facilities, INR5.58 crore non-fund based facilities and
INR10.50 crore non-fund based (sub-limit) facilities of the
Company at '[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 32.59 upgraded to [ICRA]BB-
Term loan (Stable) from [ICRA]B
facilities
Long-term- 21.00 upgraded to [ICRA]BB-
Fund based (Stable) from [ICRA]B
facilities
Long-term- (5.00) upgraded to [ICRA]BB-
Fund based (Stable) from [ICRA]B
Facilities
(sub limit)
Short-term- (3.50) [ICRA]A4 reaffirmed
Fund based
facilities
(sub limit)
Short-term- 5.58 [ICRA]A4 reaffirmed
Non-fund based
facilities
Short-term- (10.50) [ICRA]A4 reaffirmed
Non-fund based
Facilities
(sub limit)
The rating revision factors in experience of promoters in the
textile business for about two decades, CYSPL's diversified
business profile with presence in both yarn and fabric segments
which lends stability to volumes and the support for Company's
operations, to an extent, by the power generated from the
windmills, which offsets ~40% of the total power requirement. The
rating also takes into account healthy growth in revenues and
margins during 2012-13 driven by revival in yarn demand alongside
improvement in realizations and moderation in CYSPL's capital
structure (with gearing of 2.8 times as on March 31, 2013) aided
by conversion of INR1.5 crore of unsecured loans into equity by
the promoters during the last two fiscals coupled with repayment
of a portion of term loans. The ratings are, however, constrained
by the exposure of the Company's revenues and profitability to
volatility in cotton and yarn prices. CYSPL operates in the highly
fragmented spinning industry in the coarser count segment where
high competition coupled with low product differentiation limits
pricing flexibility and its relatively small scale of operations
restrict scale economies and financial flexibility. With
significant repayment obligations slated for next two fiscals, the
ability of the Company to sustain profitability and generate
sufficient cash flows as witnessed in the last fiscal would remain
the key rating sensitivities. Also, the ability of the Company to
enhance its scale of operation and improve its capital structure
will be crucial for improving its financial profile.
CYSPL, promoted in 2005 by Mr. C. Subramaniam, is primarily
engaged in manufacture of cotton yarn. The Company produces
coarser counts of grey yarn (in the count range of 20s to 34s) and
supplies primarily to domestic garment manufacturers and deemed
exporters. The Company also exports to customers in South America,
China and Bangladesh with direct exports contributing to ~2.6% of
the total sales during 2012-13. CYSPL is also engaged in
production of fabric with the fabric sales contributing to ~40% of
the revenue during 2012-13. The Company operates with an installed
capacity of 16,800 spindles and has 15 knitting machines. CYSPL's
manufacturing facility is located in Avinashi (Tamil Nadu). The
Company owns three wind mills in Tamil Nadu (combined capacity of
2,200 KW), which helps in savings on power costs to great extent.
Recent Results
The Company reported net profit of INR0.9 crore on an operating
income of INR66.9 crore during 2012-13 as against net loss of
INR2.4 crore on an operating income of INR60.1 crore during 2011-
12.
COAL BENEFICATION: CRISIL Cuts Rating on INR75MM LT Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Raigarh
Coal Benefication Pvt Ltd to 'CRISIL D' from 'CRISIL BB+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 75 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
The rating downgrade reflects the deterioration in company's
liquidity position, leading to delays in servicing its term debt
obligations.
The rating reflects modest scale of operations with intense
competition in the industry. These weaknesses are partially offset
by RCBPL's promoters' extensive industry experience.
RCBPL was incorporated in 2005 by Mr. Bharat Agrawal as promoter
director. The company set-up a coal washery unit in 2007 and the
commercial operations commenced in May2009. The company is
primarily engaged in the beneficiation of coal through resizing,
washing and beneficiation of raw coal by using Heavy media cyclone
technology. The company has been facing disruption in its
operations due to environmental issues. The company's
manufacturing facility is located at Raigarh, Chattisgarh
RCBPL reported net profit of INR0.05 million on net sales of
INR132.7 million for 2012-13 (refers to financial year, April 1 to
March 31), as against a profit after tax of INR2.1 million on net
sales of INR308.1 million for 2011-12.
CRIMSON METAL: CARE Revises Rating on INR11.65cr Loan to 'B'
------------------------------------------------------------
CARE revises/reaffirms the ratingassigned to the bank facilities
of Crimson Metal Engineering Company Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.65 CARE B Revised from
Facilities CARE B-
Short-term Bank 3.50 CARE A4 Reaffirmed
Facilities
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Crimson Metal Engineering Company Limited factors in
the improvement in profitability metrics, driven by relatively
higher proportion of job work. However, the ratings continue to be
constrained by the low capacity utilization, volatility in raw
material as well as finished goods prices and weak leverage and
coverage indicators.
The ratings favorably factor in the experience of the promoters
and the established relationship with its customers.
Going forward, the ability of the company to effectively utilize
the available capacity and sustain its profitability amidst
intense competition will be the key rating sensitivities.
Additionally, improvement in the capital structure will also be a
rating sensitivity.
Crimson Metal Engineering Company Limited, formerly known as Sri
Saarbati Steel Tubes Limited, was incorporated as a public limited
company in February 1985 by Mr Vinay Kumar Goyal of Chennai. CMECL
is engaged in the manufacturing of electrical resistance welded
(ERW) pipes and tubes like black & GI pipes, GP coils, square &
rectangular pipes, etc. Mr Vinay Kumar Goyal is a graduate, having
over two decades of experience in the steel industry. He looks
after the overall day-to-day affairs of the company with
assistance from a team of six directors who have experience of
more than a decade in the industry.
CMECL manufactures both galvanized and black pipes from «" to 10"
sizes as per BIS standards with a pipe manufacturing capacity of
55,000 metric tonnes per annum (MTPA), skelp production
capacity of 36,000 MTPA, rolling mill with capacity of 24,000
MTPAand galvanising plant of 18,000 MTPA, as of September 2013, at
Pondicherry. The company's sales are concentrated in the southern
region, wherein the company has established good relationship with
many of the customers. The major raw materials required by CMECL
are billets, coil, sockets & zinc which are procured locally from
suppliers depending on the orders to be executed.
From the financial year 2000-2001, the company started incurring
huge losses (resulting in erosion of its net-worth) due to the
heavy input and interest costs. Consequently, the company was
referred to BIFR in September 2001. However, through restructuring
the capital base of the company and infusion of fresh capital by
the promoters and directors, the company came out of the purview
of BIFR in October 2011.
CMECL has achieved a PAT of INR0.98crore on a total operating
income of INR118.13crore in FY13(refers to the period April 01 to
March 31)as compared with a PAT of INR0.49 crore on a total
operating income of INR132.29 crore in FY12.
DASHMESH CABLES: ICRA Places 'BB' Rating on INR13.75cr Loans
------------------------------------------------------------
A long-term rating of '[ICRA]BB' and short-term rating of
'[ICRA]A4' have been assigned to the fund-based and non-fund based
limits aggregating to INR15.00 crore of Dashmesh Cables. The
outlook on the long-term rating is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term: Fund- 5.00 [ICRA]BB (Stable) assigned
based Limits
Long-term: Proposed/ 8.75 [ICRA]BB (Stable) assigned
Unallocated
Short-term: Fund- 1.00 [ICRA]A4 assigned
based Limits
Short-term: Non- 0.25 [ICRA]A4 assigned
fund-based limits
While arriving at the ratings, ICRA has taken a consolidated view
of the two group entities viz. Dashmesh Cables and Vishal Cables
Pvt. Ltd. in view of the similar product profile, and operational
& managerial linkages between these two companies.
The assigned ratings are constrained by the modest scale of
operations of the group; the working capital intensive nature of
operations and the high level of competition in the LT power cable
segment, leading to pricing pressures and low bargaining power
with customers. ICRA also notes that the operations in the cable
industry remain exposed to delays in the end-customer projects,
which in-turn could lead to delays in product off-take and weak
order inflows.
However, the ratings favourably consider the long track record of
the group in the manufacture of LT power cables, with an
established brand name viz. Vishal; the favourable long-term
demand outlook for cables; and the established and diversified
customer base.
Dashmesh Cables (DC) is a partnership firm, established in 1993 by
Mr. Hirasingh Ailsinghani and Mr. Dilipsingh Ailsinghani. Dashmesh
Cables is engaged in the manufacture of LT (low tension) power
cables comprising of XLPE (cross-linked polyethylene) insulated
and PVC (polyvinyl chloride) insulated cables for the power and
control cable industry segments. The cables are marketed under its
own brand name viz. "Vishal". The firm has its manufacturing
facility at Ulhasnagar (Maharashtra) with an installed production
capacity of ~3000 kilometres (km) of cables per annum.
DC"s group concern viz. Vishal Cables Private Limited (VCPL) was
set up in 2008 and is in the same line of business as DC. VCPL has
its own manufacturing facility at MIDC Ambernath (Maharashtra)
with an installed production capacity of ~3000 km of cables per
annum. The promoter group is planning to set-up an additional
manufacturing unit at Ambernath within VCPL, and subsequently
transfers Dashmesh"s operations to VCPL over the medium-to-long
term.
Recent Results
For the year-ended March 31, 2013, the firm reported Operating
Income (OI) of INR24.6 crore and net profit after tax of INR0.24
crore. For the six-months-ended September 30, 2013, the firm
reported sales of INR9.27 crore and net profit before tax of
INR0.40 crore (unaudited results).
DAYAWATI BISHWANATH: CRISIL Puts 'BB' Rating on INR80MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Dayawati Bishwanath Traders Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 49.5 CRISIL BB/Stable
Proposed Long-Term
Bank Loan Facility 30.5 CRISIL BB/Stable
The rating reflects DBTPL's extensive experience of DBTPL's
promoters in the fast moving consumer goods (FMCG) distribution
segment, and their long-term association with Hindustan Unilever
Ltd (HUL). These rating strengths are partially offset by the
working-capital-intensive operations, and weak financial risk
profile.
Outlook: Stable
CRISIL believes that DBTPL will maintain its credit risk profile
over the medium term, backed by extensive experience of its
promoters in the distribution segment. The outlook may be revised
to 'Positive' if the company improvement in its liquidity along
with its financial risk profile, driven by improvement in working
capital management or cash accruals, or an improvement in its
capital structure. Conversely, the outlook may be revised to
'Negative' if DBTPL's liquidity deteriorates due to further
stretch in its working capital cycle, or any significant debt-
funded capital expenditure (capex) programmes.
DBTPL was established in November 2012 by the Kolkata-based
Agarwal family as a partnership firm. The firm was reconstituted
as a private limited company in February 2013. DBTPL is an
authorised redistributor-cum-stockist of HUL.
DYNOMERK CONTROLS: CRISIL Assigns 'B' Ratings to INR74MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Dynomerk Controls.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 16.6 CRISIL B/Stable (Assigned)
Proposed Long-Term
Bank Loan Facility 38.4 CRISIL B/Stable (Assigned)
Bank Guarantee 6.0 CRISIL A4 (Assigned)
Cash Credit 19.0 CRISIL B/Stable (Assigned)
The ratings reflect DC's modest scale of operations coupled with
susceptibility of its operating performance to offtake by
automobile sector and weak financial risk profile marked by modest
net worth, high gearing and subdued debt protection metrics. These
rating weaknesses are partially offset by the extensive industry
experience of DC's partners.
Outlook: Stable
CRISIL believes that DC will continue to benefit over the medium
term from its partners' extensive industry experience. The outlook
may be revised to 'Positive' if the firm registers a significant
and sustainable growth in its revenues, while improving its
capital structure and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' in case DC registers a
significant decline in its revenues and margins or if its working
capital cycle lengthens further, leading to further weakening of
its financial risk profile.
Dynomerk Controls (DC) is a partnership firm set up in 1996 by Mr.
Kishor Raut and his family members. DC is engaged in manufacture
of vehicle engine testing equipments. The firm has its
manufacturing facility at Pune.
DC reported, a profit after tax (PAT) of INR1.7 million on net
sales of INR106.3 million for 2012-13 (refers to financial year,
April 1 to March 31) as against a PAT of INR1.7 million on net
sales of INR115.8 million for 2011-12.
EAST WEST: ICRA Reaffirms 'BB-' Rating on INR7cr Loan
-----------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB-' rating for the INR7.00 crore
(enhanced from INR6.00 crore) long term fund based cash credit
facility of East West Products Limited. ICRA has also reaffirmed
the short-term rating of '[ICRA]A4' for the INR0.50 crore (reduced
from INR1.50 crore) short-term non-fund based facilities of EWPL.
The outlook on the long term rating is ?Stable'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 7.00 [ICRA]BB- (Stable) Reaffirmed
Non Fund Based
Limits 0.50 [ICRA]A4 Reaffirmed
The reaffirmation of ratings takes into account the modest scale
of operations of the company; de growth in revenues over FY12-
FY13; low entry barriers in the paper business which results in
high competitive intensity and fragmentation and exposure of
profitability to fluctuations in the prices of base paper. ICRA
also notes that the company has recently ventured into
manufacturing operations which although higher value accretive are
associated with risks relating to stabilization of operations;
establishing a customer base and increased funding requirements
over the near to medium term.
The ratings, however, continue to favorably consider the positive
demand outlook for paper products in India; the promoters'
significant experience in this line of business and the company's
fairly well established network and relationships with suppliers
and customers.
East West Products Ltd. was incorporated on 8th June 1993 as a
closely held public limited company and had been promoted by three
brothers namely, Mr. Anubhav Rastogi; Mr. Ankit Rastogi and Mr.
Ankur Rastogi to engage in the trading of paper products. In 2009,
the company set up a small manufacturing unit in Gurgaon, Haryana
for making corrugated boxes which are used for packing automotive
components for exports. In FY12, it set up a new manufacturing
facility at Khatima in Uttarakhand for processing base paper to
manufacture coated and super-calender paper. This new unit has an
installed capacity of 28,800 MTPA and commenced commercial
production in March 2012. That apart, EWPL owns a fleet of 33
second hand trucks which largely meet its captive material
requirements and also generate some additional income by way of
commercial services.
Recent Results
For the year ended March 31, 2013, East West Products Limited
reported an operating income of INR60.33 crore and profit after
tax of INR1.20 crore as against an operating income of INR94.33
crore and profit after tax of INR0.66 crore for FY12.
FOURCEE INFRA: ICRA Revises/Suspends BB- Ratings on INR250cr Loan
-----------------------------------------------------------------
ICRA has revised the long-term rating assigned to the
INR150.00 crore long-term, term loans/buyers credit facility and
US$10 million long-term, buyers credit facility of Fourcee
Infrastructure Equipments Private Limited to '[ICRA]BB-' from
'[ICRA]BBB'. ICRA has also revised the ratings for the INR100.00
crore long-term/ short-term working capital facilities? of the
company to [ICRA]BB-/[ICRA]A4 from [ICRA]BBB/[ICRA]A3+. Further,
ICRA has suspended the ratings assigned to the aforementioned bank
lines of the company.
Facilities Amount Ratings
---------- ------ -------
Long-term, term INR150cr Revised to [ICRA]BB-
loans/ buyers and suspended
credit
Long-term, buyers US$10MM Revised to [ICRA]BB-
Credit and suspended
Long-term/ short- INR100cr Revised to [ICRA]BB-/
term, working [ICRA]A4 and suspended
capital limits
The rating revision factors in the governance concerns following
adverse audit observations (by Ernst & Young ? the forensic
auditor appointed by the PE investors and by BSR & Co ? the
statutory auditor of the company), as documented by the Private
Equity (PE) investors ? General Atlantic and India Equity Partners
? in an affidavit filed with the Company Law Board (CLB)?. ICRA
had placed the ratings under ?rating watch with negative
implications' subsequent to the PE investors filing petition with
the CLB to seek remedies including appointment of a CLB appointed
administrator to take control of Fourcee, and to conduct a further
investigation into the Company's financial affairs.
In addition, ICRA has also suspended the ratings due to ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company. ICRA has not been able to
obtain clarifications from the company on the audit observations
mentioned in the petition filed with CLB.
Established in 2007 by Mr. Vinay Singh and Mr. Rajesh Lihala,
Fourcee is an end-to-end liquid logistics provider with operations
across India. The company transports liquid cargo in
internationally certified tank containers by railway network.
Fourcee owns tank containers and specializes in the transportation
of non-POL liquids like chemicals, petrochemicals (CBFS), edible
oil, molasses, and ?liquid-like' materials like alumina and
cement. The company also provides the first and last mile
logistics services to its clients through a fleet of trailers
owned/ leased by the company. The company has also set up
Container Maintenance and Repair (CMR) stations at Kandla,
Kashipur (Uttarakhand), Mumbai and Hazira to provide cleaning,
maintenance and repair services to its containers. The company, in
October 2011, entered into a 50:50 joint venture (JV) with India
Glycols Limited to form Kashipur Infrastructure & Freight
Terminals Private Limited, for setting up a private freight
terminal in Kashipur, which is expected to commence operations by
March 2013.
The company's growth over the last couple of years has been
supported by multiple instances of private equity infusion into
the company. General Atlantic (GA) and India Equity Partners (IEP)
are the current private equity investors in the company;
currently, the investments are in the form of CCPS and post
conversion of CCPS into equity shares, GA and IEP are expected
hold ~62% stake in the company, with the balance stake held by the
promoters.
GLOBAL AUTOTECH: ICRA Suspends 'BB+' Rating on INR110cr Loans
-------------------------------------------------------------
ICRA has suspended the '[ICRA]BB+(Stable)' and '[ICRA]A4+' rating
for the INR110.0 Crore bank facilities of Global Autotech Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
GMR CHHATTISGARH: ICRA Assigns 'BB+' Rating to US$101MM Loan
------------------------------------------------------------
ICRA has assigned an '[ICRA]BB+' rating to the US$101 million ECB
facility of GMR Chhattisgarh Energy Limited. The outlook on the
rating is Stable. ICRA has an outstanding rating of [ICRA]BB+ with
a Stable Outlook for the INR6217 crore term loan programme of GMR
Chhattisgarh. The ECB facility forms part of the earlier rated
term loan programme of INR6217 crore and the total rated amount is
thus capped at INR6217 crore.
Other credit strengths and concerns for GMR Chhattisgarh remain
the same as highlighted in ICRA's earlier rationale issued in
November 2013, available at http://is.gd/3JMNZA
GMR Chhattisgarh (100% held by GMR Energy Limited) is developing a
1370 MW (2 X 685 MW) supercritical unit at Raipur District,
Chhattisgarh. Financial closure has been achieved, land has been
acquired and most major approvals are in place. The GMR Group is
an infrastructure developer active in the power, roads and
airports segments; at present the Group operates power plants
having a cumulative capacity of 823 MW while an estimated 4588 MW
is under development. The total project cost of INR8290 crore is
being funded through debt of INR6217 crore and equity of INR2073
crore. As on date, approx INR5058 crore has been spent on the
project against which an equity of INR1372 crore has been infused
while debt of INR3686 crore has been drawn. Unit 1 of the power
plant is scheduled to be commissioned by October 2013, while Unit
2 is scheduled to be commissioned in March 2014 ? the project is
currently running a 6-7 month delay against this schedule.
GOOD LUCK: ICRA Suspends 'B' Rating on INR30cr LT Loans
-------------------------------------------------------
ICRA has suspended '[ICRA]B' rating assigned to the INR30.00
crores long term fund based limits. ICRA has also suspended
'[ICRA]A4' rating assigned to the INR10.00 crores short term fund
based limits of Good Luck Capital Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise
INDIAN GEMS: ICRA Suspends 'BB' Rating on INR35cr Loan
------------------------------------------------------
ICRA has suspended '[ICRA]BB' rating with stable outlook assigned
to the INR35.00 crore working capital facility and '[ICRA]A4'
rating to the INR2.00 crore short term non fund based bank
guarantee, sub-limit of cash credit limit, of Indian Gems &
Jewellery Imperial Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
INDO SILICON: ICRA Reaffirms 'B-' Rating on INR6.5cr Loans
---------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B-' to the
INR6.5 crore cash credit facilities of Indo Silicon Electronics
(P) Ltd. ICRA has also reaffirmed rating of '[ICRA]B-/[ICRA]A4' to
the INR1.5 crore unallocated facilities of ISEPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 6.50 [ICRA]B- reaffirmed
Unallocated
Facilities 1.50 [ICRA]B-/A4 reaffirmed
The rating reaffirmation takes into account the long-standing
experience of Indo Silicon Electronics Private Limited's (ISEPL)
promoters in the business of trading imported automotive
accessories and the company's established relationships with
wholesale dealers and overseas suppliers providing strength to its
supply chain. The ratings are, however, constrained by the
moderate scale of operations coupled with the low profitability of
the trading business. The high working capital intensity has put
pressure on liquidity and the financial risk profile is
characterized by weak debt protection metrics. Further, high
dependence on imports exposes the company to foreign exchange
fluctuation risk. Going forward, the ability of the company to
increase its scale of operations and cope with forex risk will be
the key rating sensitivities.
Indo Silicon Electronics Pvt. Ltd was incorporated in 1999.
Historically, ISEPL has been engaged in the trading of tyres and
tubes, auto parts and accessories, car audio/video systems, car
security systems, gear locks and other car care products. The
company has been importing these products from China, Taiwan and
Singapore. From 2005 onwards, the focus has shifted to tyres and
other car accessories. As of now, the focus of the company is
entirely on trading tyres that are primarily imported from China
and additionally procured from the domestic market.
INDORE COMPOSITE: ICRA Suspends 'B+/A4' Rating on INR15.18cr Loan
-----------------------------------------------------------------
ICRA has suspended the [ICRA]B+/[ICRA]A4 rating assigned to the
INR15.18 crore, bank lines of Indore Composite Private Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company
INDSUR GLOBAL: CARE Assigns 'BB' Rating to INR22.87cr Loans
-----------------------------------------------------------
CARE assigns 'CARE BB' & 'CARE A4' to the bank facilities of
Indsur Global Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 22.87 CARE BB Assigned
Facilities
Short-term Bank 3.00 CARE A4 Assigned
Facilities
Rating Rationale
The ratings of Indsur Global Limited are constrained by the
relatively small scale of operations, weak debt coverage
indicators and expected deterioration in the capital structure.
The ratings are further constrained by the working capital
intensive nature of operations resulting in full utilization and
susceptibility of profitability margins to foreign exchange
fluctuations.
The ratings factor in the benefit derived from the experienced
management, financial support from the promoters in the past and
established relationships with reputed clientele base. IGL's
ability to scale up and stabilize the operations with doubling of
capacity along with improvement in the margins as envisaged and
efficient management of working capital cycle remains the key
rating sensitivities.
Incorporated in 1994, Indsur Global Limited formerly known as HGI
Foundries ? unit of Aditya Birla group located in Halol, Gujarat]
is a closely held company taken over by Indsur group in the year
2004. Currently, the company is engaged in the business of
manufacturing of insulator and auto castings, with insulator
contributing majority of the revenues. With completion of the
expansion and modernization plan in October 2013, IGL presently
has installed capacity of 14,000 Metric Tons Per Annum (MTPA). The
company sells its products throughout the country (formed
70% of the total income in FY13 [refers to the period April 1 to
March 31]) and also in the overseas markets ie USA, UK, Italy,
Germany, Slovac and Austria.
During FY13, IGL posted a total operating income of INR55.63 crore
(down by 14.97% vis-…-vis FY12) and PAT of INR0.14 crore (vis-a-
vis INR0.03 crore in FY12). Furthermore, IGL has posted a
total income of INR27.50 crore during H1FY14 and has an order book
position of around INR20 crore as on November 12, 2013.
JNV VIRA: ICRA Lowers Ratings on INR15.85cr Loans to 'D'
--------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR8.00
crore cash credit facility and INR0.85 crore term loan facility of
JNV Vira Engineering Private Limited to '[ICRA]D' from '[ICRA]B-'.
ICRA has also revised the short-term rating assigned to the
INR7.00 crore non-fund based limit of JVEPL to '[ICRA]D' from
'[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 8.00 Revised to [ICRA]D from
[ICRA]B-
Term loan 0.85 Revised to [ICRA]D from
[ICRA]B-
Bank Guarantee 7.00 Revised to [ICRA]D from
[ICRA]A4
The revision in ratings takes into account the weak liquidity
profile of the company with sharp increase in working capital
intensity in FY 2013, resulting in delays in term loan repayment
obligation and high utilization of working capital bank limits.
The ratings are further constrained by JVEPL's modest scale of
operations with de-growth in FY 2013; and linkage of its revenue
growth to timeliness of project execution by its large clients.
The ratings also factor in the competitive pressures from
organized as well as unorganized players and the vulnerability of
profitability to any unfavourable fluctuations in prices of key
raw materials given the fixed price nature of job work contracts.
ICRA however favourably notes the extensive experience of the
promoters in fabrication of process equipments/accessories, the
reputed customer base and the company's established relations with
the customers which assists in procuring repeat orders, and its
moderate profitability and return indicators.
Incorporated in 2007, JNV Vira Engineering Private Limited is an
engineering company engaged in the fabrication business, primarily
manufacturing process equipments/accessories for industries like
petrochemicals, power and other related industries. The major
products manufactured by the company include storage tanks, pipe
racks, building structures and other fabricated process equipment.
The company carries out its activities at a 49,000 square foot
workshop unit at Vadodara, Gujarat. JVEPL is promoted by Mr. Vinod
Shah and Mr. Jaykumar Patel.
Recent Results
During FY 2013, JVEPL reported operating income of INR23.30 crore
and profit after tax of INR1.01 crore as against an operating
income of INR29.86 crore and profit after tax of INR1.15 crore
during FY 2012.
KAMLESH JEWELLERS: CRISIL Reaffirms BB- Ratings on INR120MM Loans
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Kamlesh Jewellers Pvt
Ltd (KJPL) continues to reflect the extensive experience of KJPL's
promoters in the gold jewellery industry. This rating strength is
partially offset by the company's constrained financial risk
profile, marked by its aggressive capital structure and low
operating margins, and modest scale of operations due to highly
fragmented nature of industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 62.5 CRISIL BB-/Stable (Reaffirmed)
Proposed Long-Term 57.5 CRISIL BB-/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that KJPL will benefit over the medium term from
the established position in its gold jewellery retail business
with the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' upon a significant
improvement in the company's scale of operations along with
improvement in its capital structure and better-than-expected
accruals, leading to improvement in the financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
further deterioration in its financial risk profile and liquidity,
due to larger-than-expected incremental working capital
requirements and decline in cash accruals, or if it undertakes a
large debt-funded capital expenditure programme.
KJPL was set up in 1976 as a proprietorship firm, Kamlesh
Jewellers, by Mr. Jamnadass Minawala; it was reconstituted into a
partnership firm in 1980 and later, in 1999, as a private limited
company with the current name. KJPL retails gold jewellery, and
diamond and kundun studded jewellery through its showroom Mumbai
(Maharashtra).
KJPL reported profit after tax (PAT) of INR3.1 million on net
sales of INR329 million for 2012-13 (refers to financial year,
April 1 to March 31) against PAT of INR2.9 million on net sales of
INR287.1 million for 2011-12.
KOX MED: ICRA Suspends 'BB+' Rating on INR7cr Cash Credit
---------------------------------------------------------
ICRA has suspended '[ICRA]BB+(stable)/[ICRA]A4+' rating assigned
to the INR7.0 Crore fund based and INR1.0 crore non-fund based
facilities of Kox Med & Lab Pvt Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.00 [ICRA]BB+ (Stable)
Facilities suspended
Non Fund Based 1.00 [ICRA]A4+ suspended
Facilities
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Kox Med & Lab Private Limited, set up in 2001 as a partnership
firm, was converted into a Private Limited Company in 2004. KMLP
is engaged in the distribution of non surgical cardiology products
like stents, pace makers, angiography products besides other
devices for select global medical equipment manufacturing
companies. The company serves as an exclusive distributor for a
particular product range manufactured by each principal for a
defined set of hospitals. The company serves hospitals located
largely in the Delhi/NCR region, serving as a distributor for
Abbott Vascular, Boston Scientific, St. Jude and Surgi Pharma with
Abbott Vascular being the primary principal.
KRISH CEREALS: ICRA Rates INR8cr LT Loans at 'B'
------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]B' to the INR8.00
crores Bank facilities of Krish Cereals Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 8.00 [ICRA]B assigned
Based Limits
The assigned rating is constrained by high gearing arising out of
substantial debt funding of large working capital requirements
resulting in low profitability at net levels. The rating also
factors in the high intensity of competition in the rice milling
industry and agro climatic risks which can affect the availability
of paddy in adverse weather conditions. Nevertheless, the rating
favorably factors in the long standing experience of promoters in
the rice industry, Good demand supply dynamics in basmati rice
industry and proximity of the mill to major rice growing area
which results in easy availability of paddy.
Business was established in the year 2011 as private limited
company. Directors of the company are actively engaged in the
operations of the company and have an experience of more than two
decade in rice industry and have other firms located in same area.
Milling capacity of the plant is 8 tonnes/hr of paddy. In order to
expand its operations company is installing a new 8 tonne/hr
capacity plant. Krish Cereals Pvt. Ltd. is engaged in the business
of processing and trading of Basmati rice. Company is having its
manufacturing unit at Main Road, Nissing, Haryana.
Recent Results:
KCPL reported a net profit of INR0.14 crores on an operating
income of INR32.71 crores for the year ended March 31, 2013 and
net profit of INR0.03 crores an operating income of INR18.06
crores for the year ended March 31, 2012.
LAHS GREEN: ICRA Assigns 'SP 3C' Grading
----------------------------------------
ICRA has assigned a 'SP 3C' grading to Lahs Green India Private
Limited, indicating the 'Moderate Performance Capability' and 'Low
Financial Strength' of the channel partner to undertake off-grid
solar projects. The grading is valid for a period of one year from
November 8, 2013 after which it will be kept under surveillance*.
Grading Drivers
Strengths Diversified product profile across solar water heaters,
solar lighting products, waste-water management and rainwater
harvesting equipment Track record of five years in the field of
supplying and installation of solar water heaters Healthy order
book position.
Risk Factors Small scale of operations Low networth base Ability
to win large-sized orders remains important to improve overall
scale of operations.
Fact Sheet
Year of Formation: 2009
Office Address: 27, Om Anand Industrial Estate, Raghunath Nagar,
Near Raheja Gardens, Thane (West)
Shareholding Pattern: Promoters and Promoter Group ? 100%
Lahs Green India Private Limited was incorporated as a
proprietorship concern in September 2009, and commenced operations
as an authorised dealer for solar water heaters of Syntec Solar
Solutions Private Limited and Gujarat Borosil Limited. In
September 2011, it was converted into a private limited company
and began indigenous manufacture and assembly of solar water
heaters. In FY 2012, the company also forayed into the
installation of rainwater harvesting equipment and waste-water
management systems. Currently, the revenue base of the company is
driven primarily by the sale of Evacuated Tube Collector (ETC)
(indigenously manufactured) and Flat Plate types of solar water-
heaters. The manufacturing activities are carried out at a
workshop in Shahpur (Maharashtra), which is equipped with an
annual installed capacity of about 400 kilolitres per day (klpd).
The company has recently commenced activities in another rented
workshop at Kaler (Maharashtra) which is expected to increase the
cumulative annual installed capacity to about 750 klpd.
LGIPL has set up a partnership concern ? Lahs Eco Engineering
(LEE), in which LGIPL has a 75% stake. LEE has taken over the
company's manufacturing facility at Shahpur and has recently
acquired the other workshop at Kaler, both on a rental basis.
LGIPL has also established another partnership concern ? Lahs Agri
and Horti Solutions (LAHS) ? which is involved in the field of
organic farming. LGIPL has a 75% stake in LAHS.
SI Related Business - Moderate Performance Capability
* Promoter Track Record: The company has been involved in the
field of supplying and installing solar water heaters since 2009.
At the time of inception, the company was an authorized dealer for
solar water heaters manufactured by Syntec Solar Solutions Private
Limited and Gujarat Borosil Limited. In 2011, however, the company
commenced indigenous manufacture of solar water heater tanks and
assembly of other components, at its rented workshop in Shahpur
(Maharashtra), which is equipped with an aggregate annual
installed capacity of 400 klpd. In the last three fiscals, viz.
from FY 2011 to FY 2013, the company has manufactured and
installed solar water heaters with a cumulative installed capacity
of 500 klpd; installations in FY 2013 increased by 67% on y-o-y
basis for the company. Recently, LGIPL, though its subsidiary Lahs
Eco Engineering (LEE), has taken another workshop at Kaler
(Maharashtra) on rental basis. As on date, the cumulative annual
installed capacity at the two units is about 750 klpd.
* Technical competence and adequacy of manpower: The promoters of
the company have been engaged in the business of supplying and
installing solar water heaters for nearly two decades. Currently,
the company executes contracts predominantly for institutional
customers. The collaboration with Perfect Engineering (which has
been a long-time supplier of solar water heater components to
LGIPL) at the Shahpur unit, has provided added benefit to the
company in terms of easy availability of raw materials, technical
expertise and additional workforce. LGIPL also intends to
collaborate with other domestic manufacturers of solar water
heater components such as Suntek Energy Systems, Hyderabad (from
whom it currently procures imported tubes used in solar water
heaters), in order to further boost its manufacturing capability.
The management of the company has diversified into the field of
organic farming through its group concern, which is also expected
to garner greater rural market for its solar power business.
Moreover, LGIPL has also forayed into installation of waste-water
management systems and rainwater harvesting equipment in recent
years. The company's products are currently not registered with
the Ministry of New and Renewable Energy (MNRE) and the Indian
Renewable Energy Development Agency (IREDA). Besides the technical
expertise of the promoter in this industry, about 15 welders and
helpers are employed at the two workshops in Shahpur and Kaler,
though these employees are not on the books of the company.
* Quality of suppliers and tie ups: The company manufactures solar
water heater tanks indigenously and sources other components such
as flat plate collectors and tubes from domestic manufacturers
such as The Standard Products Manufacturing Company, and
Machinocraft Energy Systems. LGIPL procures imported tubes from
Suntek Energy Systems, Hyderabad. The company has been associated
with most of its suppliers for more than 2 years.
* Customer and O&M Network: Though initially LGIPL had been
executing contracts for retail customers, the existing clientele
of the company comprises of predominantly institutional customers,
numbering upto ~400. Consequently the size of contracts received
has increased, leading to a healthy growth in the revenue base of
the company. LGIPL provides services pertaining to installation
and consultation on solar water heaters, rainwater harvesting
equipment and waste-water management systems. The company offers a
warranty period of 5 years on its products, and O&M services are
provided by the in-house team as required.
Financial Strength ? Low
Revenues: INR2.87 crore
Return on Capital Employed (RoCE): 89.88%
Total Outside Liabilities/Tangible Net worth: 2.30 times
Interest Coverage Ratio: 23.71 times
Net-Worth: INR0.21 crore;
Net worth of promoters is INR3.17 crore as on October 31, 2013
Current Ratio: 1.26 times
Relationship with bankers:
Bankers are satisfied with company's account
The overall financial profile of the company is Low.
LAXMI COTTON: CRISIL Reaffirms 'B+' Rating on INR70MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank facility of Laxmi Cotton Industries
continue to reflect LCPL's below average financial risk profile,
marked by a modest net worth and below average debt protection
metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the firm's exposure to risks relating
to the highly fragmented and competitive cotton ginning industry,
restricting its scale of operations, and its vulnerability to
changes in government policy. These rating weaknesses are
partially offset by the extensive industry experience of LCI's
partners.
Outlook: Stable
CRISIL believes that LCI will continue to benefit over the medium
term from its partners' extensive industry experience. The outlook
may be revised to 'Positive' if the firm significantly improves
its scale of operations and its profitability. Conversely, the
outlook may be revised to 'Negative', if LCI's financial risk
profile deteriorates further due to increased working-capital-
related debt or large debt-funded capital expenditure (capex), or
if any change in government policy relating to the cotton industry
has a negative impact on its operations.
LCI, established in 2005 and engaged in cotton ginning, has its
facilities in Vijapur (Gujarat). The firm is promoted and managed
by Mr. Rashikbhai Patel and his relatives.
LCI's profit after tax (PAT) and sales are estimated at INR3.0
million and INR330 million, respectively, for 2012-13; the firm
reported PAT of INR2.5 million on sales of INR336 million for
2011-12.
MAA MAHAMAYA: CARE Rates INR17.36cr Bank Loans at 'BB-'
-------------------------------------------------------
CARE assigns 'CARE BB-' ratings to the bank facilities of
Maa Mahamaya Alloys Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17.36 CARE BB- Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Maa Mahamaya Alloys
Pvt Ltd is primarily constrained by its modest scale of operations
coupled with low profitability margins, leveraged capital
structure and weak debt service coverage indicators. The rating is
further constrained by MMAL's exposure to raw material price
volatility, highly fragmented and competitive nature of its
business and cyclicality associated with the steel industry.
The rating, however, draws comfort from experienced promoters,
growing scale of operations, moderate operating cycle and MMAL's
association with reputed brand.
Going forward, the company's ability to improve its overall
financial risk profile will be key rating sensitivity.
Maa Mahamaya Alloys Private Limited was incorporated in July 2004
by Mr Kailash Nath Agarwal, his brother Mr Bhupendra Agarwal and
Mr Krishna Kumar Singh. The company started its commercial
production in 2005 with manufacturing of mild steel (MS) ingots.
Since FY12 it has also started manufacturing Thermo Mechanically
Treated (TMT) Bars. The company has its manufacturing facility
located at Chunar, Mirzapur, Uttar Pradesh with an installed
capacity of 3,600 Metric Tonnes Per Annum (MTPA) for M.S. Ingots
and 3,600 MTPA for TMT Bars as on March 31, 2013. The main raw
materials for manufacturing MS ingots are MS scrap, sponge iron
and ferro alloys which are procured domestically. MMAL sells its
product directly to the clients all across Uttar Pradesh and
Bihar. The company markets TMT bars under the brand name of
Kamdhenu Steel and for the same the company pays royalty to
Kamdhenu Ispat Ltd.
During FY13 (refers to the period April 1 to March 31), MMAL
reported a PAT of INR0.37 crore on a total operating income of
INR96.14 crore as against PAT of INR0.19 crore on a total
operating income of INR57.04 crore in FY12. As per the unaudited
result, the company has achieved total operating income of INR
66.00 crore in H1FY14 (refers to the period April 1 to
September 30).
OFFSHORE MARINETECH: CRISIL Reaffirms 'B+' INR75MM Loan Ratings
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Offshore Marinetech Pvt
Ltd continues to reflect OMPL's weak financial risk profile,
marked by a modest net worth and high gearing, constrained
negotiation power due to its small scale of operations, and its
susceptibility to intense industry competition. These rating
weaknesses are partially offset by the extensive experience of
OMPL's promoters in the offshore drilling industry and the
company's established clientele.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 55 CRISIL A4 (Reaffirmed)
Cash Credit 45 CRISIL B+/Stable (Reaffirmed)
Proposed Long-Term 15 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 15 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that OMPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established customer relationships. The outlook may be revised to
'Positive' if there is more-than-expected increase in OMPL's
revenues and net cash accruals, coupled with significant
improvement in its working capital cycle. Conversely, the outlook
may be revised to 'Negative' in case of a significant decline in
the company's revenues or profitability, or if its capital
structure or debt protection metrics weaken further.
OMPL was established in 2007 by Mr. K S Pai. It is an engineering,
procurement, and commissioning (EPC) company, and does mechanical,
piping, structural, and erection and installation work for oil and
gas (onshore and offshore) projects. The company also undertakes
ship-repair work, chiefly for Indian Naval Dockyard. OMPL has
manufacturing units at Rabale, Navi Mumbai, and at Vikhroli in
Mumbai.
OMPL reported a profit after tax (PAT) of INR2.65 million on net
sales of INR56.0 million for 2012-13 (refers to financial year,
April 1 to March 31), vis-…-vis a PAT of INR6.23 million on net
sales of INR102.4 million for 2011-12.
PHOENIX INT'L: ICRA Upgrades Rating on INR63cr LT Loans to 'BB'
---------------------------------------------------------------
ICRA has upgraded the rating assigned to INR63.0 crore long term
fund based bank limits of Phoenix International Limited to
'[ICRA]BB' from '[ICRA]BB-'. The outlook on the long term rating
is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Fund 63.00 [ICRA]BB (Stable)/upgraded
Based Limits
The rating upgrade takes into account the leasing of the
additional area equivalent to ~11% of the total leasable area by
the company w.e.f. July 2013 to a group company, Techbooks
International Pvt. Ltd., which shall improve the cover of the
monthly lease rentals in relation to the debt repayment
obligations from April 2014 with the commencement of the lease
rentals. Though the cover would increase from the present 1.03
times to 1.13 times (net of TDS and service tax), it would
continue to remain modest as the monthly debt repayments would
also increase from April 2014. The rating continues to take into
account the debt servicing reserve being maintained by the
company, which improves the liquidity and mitigate the risk of
delayed rental payments from its group companies. While the
rentals from non-promoter group tenants had been generally paid on
time, the payments from the group companies have been received
with delays which could have strained the timely servicing of the
debt obligations, given the modest debt servicing cover.
While the tenant profile remains satisfactory, the rental
concentration remains high with one tenant accounting for ~61% of
the total rentals which along with the expiry of some of the
leases before the maturity of the loan in September 2019 could
strain the debt servicing capacity of the company in case the
leases are not renewed in a timely manner. This risk is however
mitigated to a certain extent by the significant investments
undertaken by its major tenants in the premises, the competitive
rentals enjoyed by them and the attractive location of the leased
property in Sector 60, Noida, which is developed commercial area
with presence of a number of leading IT and ITeS companies in the
vicinity. The assigned rating continues to be constrained by the
weak financial profile of the company as it has given interest
free advances to another group company and promoters by leveraging
its balance sheet which has resulted in weak return indicators
despite high operating profit margins.
Going forward, PIL's ability to increase the monthly lease income
through leasing out of the vacant space in the property and
escrowing the receivables against the existing rental loan, timely
collections of the rentals and maintaining the occupancy in the
premises during the tenure of the loan will be the key rating
sensitivities.
Recent Results
During 3M 2013-14, as per the provisional results, PIL reported an
operating income of INR8.17 crore, an operating profit margin of
30.8% and a net profit margin of 1.9%.
PIL was incorporated in 1987 with an objective to manufacture
footwear for both the international and domestic markets. Its shoe
manufacturing unit in Noida commenced production in FY 1994 and
the business operations were profitable till 1999-00, when due to
labour problems, the company discontinued production and declared
lockout at the manufacturing unit in July 2000. Thereafter, during
the period 2000-05, the company continued trading of shoe uppers
in the export markets. In 2005-06, PIL restarted manufacturing
leather shoe uppers from a leased premise in Chennai. In 2006-07,
the company's erstwhile manufacturing facility in Noida was
refurbished as commercial office space and leased out which
provides a regular source of income to the company.
RASHMI SPONGE: CRISIL Ups Ratings on INR463.5MM Loans to 'B+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Rashmi Sponge Iron and Power Industries Ltd to 'CRISIL B+/Stable'
from 'CRISIL B/Stable', while reaffirming the rating on the short-
term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 340 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of credit 195.5 CRISIL A4 (Reaffirmed)
& Bank Guarantee
Proposed Long-Term 98.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 25 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects sustainable improvement in RSIPIL's
liquidity, on the back of equity infusion of INR150 million during
2012-13 (refers to financial year, April 1 to March 31), and
enhancement in working capital bank lines by INR60 million in the
past six months. The company utilised the infused funds to prepay
its term debt for 2013-14 and fund incremental working capital
requirements. CRISIL believes that control in working capital
cycle, timely realisation of advances given to associate concerns,
and fund support from promoters will be crucial for RSIPIL in
maintaining improved liquidity.
The ratings reflect RSIPIL's vulnerability to cyclicality in the
steel industry, and stretched liquidity on account of large
working capital requirements. These rating weaknesses are
partially offset by the benefits that RSIPIL derives from its
moderate operational efficiencies, and from the experience and
financial support of its promoters.
Outlook: Stable
CRISIL believes that RSIPIL will continue to benefit over the
medium term from the fund support of promoters, and its
established relationships with key customers. The outlook may be
revised to 'Positive' if the company reports significant
improvement in its financial risk profile, most likely because of
equity infusions by promoters or improvement in cash accruals.
Conversely, the outlook may be revised to 'Negative' if any large
debt-funded capital expenditure, or stretch in working capital
cycle, results in weakening in RSIPIL's liquidity and financial
risk profile.
RSIPIL was set up in 2001 by late Mr. Satyanarayan Agarwal and his
two sons, Mr. Kailash Agarwal and Mr. Manoj Agarwal. It
manufactures sponge iron and ingots. Its production facilities are
in Siltara Growth Centre, an industrial park near Raipur
(Chhattisgarh).
RSIPIL's profit after tax (PAT) is INR12.1 million on net sales of
INR1.33 billion in 2012-13, against a PAT of INR6.9 million on
revenue of INR1.15 billion for 2011-12.
REGENT EDUCATION: CRISIL Assigns 'D' Rating to INR50MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facility of Regent Education & Research Foundation (RERF). The
rating reflects instances of delays by RERF in servicing its debt
obligations; the delays have been caused by the trust's weak
liquidity arising out of cash-flow mismatches.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 50 CRISIL D
RERF also has a weak financial risk profile and modest scale of
operations, with geographic concentration in its revenue profile.
However, the trust benefits from the healthy demand prospects for
the education sector.
RERF was set up in 2008 by Mr. Vinod Dugar and Mr. Vinod Baid.
RERF runs a college in Barrackpore (West Bengal) and offers
engineering and management courses.
RLJ MULTIGRAIN: ICRA Assigns 'B+' Ratings to INR11.93cr Loans
-------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' rating to the
INR7.93 crore term loan and INR4.00 crore fund-based limits RLJ
Multigrain Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 [ICRA]B+ assigned
Term Loan 7.93 [ICRA]B+ assigned
The rating factors in the intensely competitive nature of the
industry as characterized by a large number of small players and
the vulnerability of the company to adverse changes in Government
policies towards agro based commodities like rice and the agro
climatic risks which can affect the availability of paddy. ICRA
notes that the even though the current scale of operations is
small, the recently concluded expansion of the unit is likely to
lead to higher turnover for the company going forward. The rating
factors in the favourable location of the mill in a major rice
growing region thereby ensuring easy availability of paddy and the
favourable demand prospects of the industry with rice being a
staple food grain and India being the world's second largest
producer and consumer of rice.
RLJ Multigrain Private Limited was originally incorporated as a
partnership firm M/s Swastik Udyog. Subsequently the promoters
reconstituted the company as a private limited entity in 2012. The
company is promoted by Jain family based out of Kolkata and the
unit has rice milling annual capacity of 63,000 tons.
Recent Results
The company reported a net profit of INR0.09 crore in FY13 on an
operating income (OI) of INR4.01 crore, as compared to a net
profit of INR0.07 crore on an OI of INR1.18 crore during FY12.
S.I. PATEL: CRISIL Reaffirms 'B+' Ratings on INR100MM Loans
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of S.I. Patel
Industries continues to reflect SIP's below average financial risk
profile, marked by a high gearing, a small net worth, and weak
debt protection metrics, small scale of operations in the
intensely competitive cotton industry, and vulnerability to
unfavorable changes in government policy. These rating weaknesses
are partially offset by its promoter's extensive industry
experience and support.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 95 CRISIL B+/Stable (Reaffirmed)
Proposed Long-Term 5 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that SIP will continue to benefit over the medium
term from the proximity of its operations to the cotton-growing
belt. CRISIL, however, also believes that the firm's financial
risk profile will remain below average during the same period
because of low accruals and a highly leveraged capital structure.
The outlook may be revised to 'Positive' if SIP significantly
improves its capital structure either by equity infusion or higher
cash accruals. Conversely, the outlook may be revised to
'Negative' if the firm's financial risk profile deteriorates
further because of increased working capital-related debt or in
case of change in government policy negatively impacting its
operations.
Started in 2005, SIP is engaged in cotton ginning activity along
with the production of crude cotton oil. Located in Vijapur
(Gujarat), SIP is promoted and managed by Mr. Prakash Chandra
Patel.
SIP's profit after tax (PAT) and sales are estimated at INR3.3
million and INR340 million, respectively, for 2012-13; the firm
reported PAT of INR3.0 million on sales of INR386 million for
2011-12.
S&S TECHNOCRATS: ICRA Suspends 'B' Rating on INR9.5cr Loans
-----------------------------------------------------------
ICRA has suspended long-term rating of '[ICRA]B' assigned to the
INR9.50 crore bank facilities of S & S Technocrats Private
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
SAINATH COTTON: CRISIL Reaffirms 'B' Ratings on INR51.7cr Loans
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sainath Cotton
Industries continues to reflect SCI's weak financial risk profile,
marked by high gearing, a small net worth, and weak debt
protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Proposed Long-Term 1.7 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
The rating also factors in the firm's small scale of operations in
the intensely competitive cotton industry, and its vulnerability
to changes in government policies. These rating weaknesses are
partially offset by the extensive industry experience of SCI's
promoters and the financial support it receives from them.
Outlook: Stable
CRISIL believes that SCI will continue to benefit over the medium
term from the extensive experience and support of the promoters.
CRISIL, however, also believes that the firm's financial risk
profile will remain weak over this period because of low accruals
and a highly leveraged capital structure. The outlook may be
revised to 'Positive' if SCI significantly improves its capital
structure, most likely through equity infusion or higher cash
accruals. Conversely, the outlook may be revised to 'Negative' if
the firm's financial risk profile deteriorates further, most
likely because of increased working-capital-related debt, or in
case of an adverse impact on its operations of any change in
government policies.
SCI, set up in 2005, operates in the cotton ginning industry. The
Kadi (Gujarat)-based firm is promoted and managed by Mr. Suresh
Patel.
SCI's profit after tax (PAT) and sales are estimated at INR2.0
million and INR398 million, respectively, for 2012-13 (refers to
financial year, April 1 to March 31); the firm had reported a PAT
of INR2.2 million on sales of INR295 million for 2011-12.
SANJOO PRINTS: ICRA Assigns 'D' Ratings to INR7.73cr Loans
----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]D' to the fund-
based and unallocated proposed limits of Sanjoo Prints Pvt. Ltd.
aggregating to INR7.73 Cr.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limit- 1.02 [ICRA]D assigned
Term Loan
Fund based limit- 5.25 [ICRA]D assigned
Cash credit
Fund based limit- 0.50 [ICRA]D assigned
WCTL
Unallocated limits 0.96 [ICRA]D assigned
The assigned rating reflects the regular delays in debt servicing
by SPPL on account of the high working capital intensity of its
operations leading to a stretched liquidity position, also evident
from consistent over-utilisation of the working capital bank
limits by the company. The rating also takes into account SPPL's
small size of operations, its weak financial risk profile as
indicated by low profitability margins, stretched capital
structure and modest coverage indicators and the intensely
competitive business environment in the textile industry.
ICRA however favourably considers the long and established track
record of the company's promoters in the textile industry, the
company's diversified customer base and its locational advantages
by virtue of proximity to suppliers and customers.
Incorporated in 1993, Sanjoo Prints Pvt. Ltd. is a company based
in Surat, Gujarat and is engaged in manufacturing of grey cloth
from yarn and dyeing of fabric on job-work basis. The company is
also involved in trading of grey fabric. The company has its
processing facility located at Surat in Gujarat with a total
installed capacity of ~25 lakh meters per month of fabric dyeing
capacity and ~100 tons per month of grey cloth manufacturing
capacity. The company procures grey fabric and yarn locally from
Surat and processes the fabric in-house for which the company has
installed 22 circular laying machines. The company markets its
products through direct contact with the customers and sells
mainly in the domestic markets in Surat and Mumbai.
For FY 2012, the company reported Profit after Tax (PAT) of
INR0.27 Cr. on an operating income of INR27.18 Cr. For FY 2013,
the company has reported PAT of INR0.20 Cr. on an operating income
of INR26.22 Cr.
SIDDHI TEXCHEM: CARE Assigns 'B' Rating to INR11.71cr Loans
-----------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of
Siddhi Texchem Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.71 CARE B Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Siddhi Texchem
Private Limited is primarily constrained on account of the lower-
than-envisaged cash generation from its newly-established
unit resulting in reschedulement of term loan account and
disruption of operations due to fire in its manufacturing facility
in January 2013 damaging 12 looms. The rating is further
constrained by its financial risk profile marked by its modest
scale of operations, weak solvency and stressed liquidity
position and its presence in a highly fragmented fabric processing
industry with limited presence in the value chain.
The rating, however, favourably takes into account the experience
of the promoters in the textile industry and location advantage of
its manufacturing unit situated in the textile cluster of Bhilwara
(Rajasthan).
The ability of the company to increase its scale of operation with
simultaneous improvement in solvency and liquidity position is the
key rating sensitivity.
STPL, incorporated in March 2005 was promoted by Mr Rajeev Gupta
along with his wife, Ms Sudha Gupta based in Bhilwara. Initially,
STPL was engaged in the business of trading of chemicals
used in textile processing, and later on in 2008, the company
started the trading of synthetic fabrics.
Later in July 2011, the company undertook a project to install 36
imported second-hand airjet looms for the manufacturing of
synthetic grey fabrics with an installed capacity of 28.80 Lakh
Meter Per Annum (LMPA). The total cost of the project was INR7.45
crore being funded at a debt to equity ratio of 1.76:1. The
company commenced commercial production from January 2012 after
the installation of 12 looms in the plant and the remaining 24
looms were installed in July 2012. In FY13 (refers to the period
April 1 to March 31), the company earned about 80% of its Total
Operating Income (TOI) from trading of fabrics, 13% from
manufacturing activity and the rest from job work.
The company is marketing its fabrics under the brand name
?SIDDHI?.
During FY13, STPL reported a total operating income of INR20.16
crore (FY12: INR14.73 crore) and net loss of INR1.59 crore (FY12:
net loss of INR0.11 crore).
SKM STEELS: ICRA Cuts Ratings on INR288.28cr Loans to 'BB+'
-----------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR270.0
crore (enhanced from INR245.0 crore) fund-based bank facilities
and the INR18.28 crore (reduced from INR20.0 crore) term loans of
SKM Steels Limited to '[ICRA]BB+' from '[ICRA]BBB-'. The outlook
on the long-term rating is 'stable'. ICRA has also revised the
short-term rating assigned to the INR140.00 crore (reduced from
INR165.0 crore) short-term fund based limits and the INR5.00 crore
non-fund based bank facilities of SKMSL to '[ICRA]A4+' from
'[ICRA]A3'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund 270.0 Revised to [ICRA]BB+(stable)
based limits (P.Y. 245.0) from [ICRA]BBB-(stable)
Term Loan limit 18.28 Revised to [ICRA]BB+(stable)
(P.Y. 20.00) from [ICRA]BBB-(stable)
Short-term fund 140.00 Revised to [ICRA]A4+ from
based limits (P.Y. 165.0) [ICRA]A3
Short-term non- 5.00 Revised to [ICRA]A4+ from
fund based limits [ICRA]A3
The revision of ratings takes into account the company's declining
revenues for the past two years; the reduced profitability in
2012-13 on account of the intensely competitive and limited value
adding nature of business; and the increased working capital
intensity of the business in 2012-13 owing to stretched
receivables, which adversely impacts liquidity profile. The
ratings are further constrained due to deterioration in the
company's financial risk profile in 2012-13, characterised by
increased gearing levels and weakened coverage indicators; and its
exposure to the cyclicality associated with the steel industry,
which is currently passing through a period of weakness.
Nevertheless, ICRA favourably considers the long experience of
SKMSL's promoters in the iron and steel industry; its large scale
of operations; and status as an authorized distributor of steel
products from Tata Steel Limited (TSL) in Madhya Pradesh and
Maharashtra. ICRA also notes the company's wide product range; its
diversification of business through presence in trading and
processing of stainless steel products; and its reputed and
diversified customer base; with top 10 customers accounting for
around 23% of the total revenues in 2012-13.
SKMSL is the flagship company of the SKM group, promoted by Mr.
Kirti Shah. It was initially set-up as a partnership firm in the
year 1972 and was subsequently incorporated as a limited company
in 1994. SKMSL is an authorized distributor of Tata Steel Limited
in the states of Maharashtra and Madhya Pradesh. The company is
also engaged in processing and trading of stainless steel
products; as also in the trading of other structural steel, alloy
steel and aluminium flat products.
Recent Results
In 2012-13, SKMSL reported a profit after tax (PAT) of INR8.77
crore on an operating income of INR1,454.41 crore as compared to a
PAT of INR10.19 crore on an operating income of INR1,482.18 crore
in 2011-12.
SRI MATA: CRISIL Reaffirms 'B' Ratings on INR550MM Loans
--------------------------------------------------------
CRISIL's rating on the bank facilities of Sri Mata Infratech
Limited continues to reflect SMIL's small scale of operations in
the cement manufacturing industry and low capacity utilisation.
These rating weaknesses are partially offset by the benefits that
SMIL derives from its promoters' extensive experience in the
cement industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B/Stable (Reaffirmed)
Proposed Long-Term 76.3 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 443.7 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SMIL will maintain a stable business risk
profile on the back of its promoters' extensive experience in the
cement manufacturing industry. The outlook may be revised to
'Positive' if SMIL registers higher-than-expected accruals,
supported by stabilisation and healthy utilisation of its
augmented capacity, or demonstrates improvement in its working
capital management, leading to improvement in its financial risk
profile. Conversely, the outlook may be revised 'Negative' in case
of significant stretch in SMIL's working capital cycle, lower-
than-expected accruals, or larger-than-expected debt-funded
capital expenditure leading to deterioration in its overall
financial risk profile.
SMIL, set up in 1984 by Mr. K S N Raju, manufactures Ordinary
Portland Cement (OPC). The company operates an integrated cement
manufacturing unit; the facility is in Nalagonda district (Andhra
Pradesh).
SRI SRINIVASA: CRISIL Assigns 'B' Ratings to INR100MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Sri Srinivasa Cotton Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term
Bank Loan Facility 49 CRISIL B/Stable
Cash Credit 25 CRISIL B/Stable
Long-Term Loan 26 CRISIL B/Stable
The rating reflects SSCI's susceptibility to risks related to the
implementation and stabilisation of its on-going project, which
involves setting up of a cotton ginning unit in Andhra Pradesh.
The rating also factors SSCI's exposure to intense competition in
the cotton ginning industry, and to unfavorable changes in
government policy. These rating weaknesses are partially offset by
the extensive industry experience of its promoters in the cotton
ginning industry.
Outlook: Stable
CRISIL believes that SSCI will continue to benefit from its
promoters' entrepreneurial experience over the medium term. The
outlook may be revised to 'Positive' if SSCI generates more-than-
expected revenues and profitability, aided by earlier-than-
expected completion of its ongoing project, thereby improving the
company's financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of time and cost overruns in the
project, or lower-than-expected revenues and profitability
resulting in deterioration of financial risk profile.
Incorporated in 2011, SSCI is in the process of setting up a
cotton ginning unit at Aloor Village in Andhra Pradesh. SSCI is
promoted by Mr.Dhanpal Suryanarayan, Mr.Gururaj Chidrawar, Mr.
Surender Mittapalli, Mr. Ramesh Kumar Surpapur and Mr. Tallam
Kumara Satish.
STANFAB APPARELS: ICRA Reaffirms 'BB+' Rating on INR3.84cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB+' to the
INR3.84 crore (reduced from INR5.25 crore) term loan facilities of
Stanfab Apparels Private Limited. ICRA has also assigned long-term
rating of '[ICRA]BB+' to the INR0.50 crore long-term fund based
facilities (sublimit) of SAPL. The outlook on the long-term rating
has been revised to positive from stable. ICRA has also re-
affirmed the short-term rating of '[ICRA]A4+' rating to the
INR24.60 crore fund-based limits (enhanced from INR21.00 crore)
and the INR3.15 crore non-fund based limits of SAPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT-Term loan 3.84 [ICRA]BB+ reaffirmed
Facilities
LT-Fund Bases-
sub limit (0.50) [ICRA]BB+ assigned
ST-Fund based 24.60 [ICRA]A4+ reaffirmed
Facilities
ST-Non-fund 3.15 [ICRA]A4+ reaffirmed
based facilities
The revision in outlook takes into account the positive outlook
for the Indian garment industry with higher export volumes to USA
and European markets owing to increased competitiveness of Indian
garmenters vis-a-vis suppliers from Bangladesh and China following
wage revisions in those markets and the appreciation of Chinese
Yuan against USD in the last 6 months. Further, concerns over
safety and working conditions in Bangladesh have diverted orders
from some international majors to India. With depreciation of the
Indian rupee against the USD, Indian garment exports have become
more competitive. The revision in outlook also takes into account
improvement in the company's operating margins with the addition
of few new customers during the past 18 months.
The ratings also take into account the steady operational
performance of the company illustrated by the healthy volume and
revenue growth on the back of established relationship with
reputed client base and diversified product profile. The ratings
also consider the rich experience of the promoters of nearly two
decades in the textile garment industry. The ratings however
continue to be constrained by the moderately stretched capital
structure and coverage indicators on the back of higher working
capital requirements resulting from longer collection period,
seasonality in sales pattern, fragmented industry structure, and
exposure of earnings to volatile raw material prices and exchange
rates. The ability of SAPL to improve its financial profile and
sustain its profit margins would be key rating sensitivities.
Stanfab Apparels Private Limited was incorporated in 1993 by Mr.
E. R. Eswaran in Chennai. SAPL is a garmenting unit engaged in the
manufacture and export of woven as well as knitted garments. It
has six production units (apart from eight leased units) across
the southern State of Tamil Nadu, with a total monthly capacity of
almost 3.5 lakh pieces of garments. SAPL"s revenues are largely
derived from the export market, where it exports its products to
customers in European Union, the United States, Australia and
Canada, with its notable clients being Primark Stores, U.K and
Spain; Woolrich & Basspro, USA; Acanthe, France; S.A. Jules,
France.
Recent Results
The company reported profit after tax of INR3.81 crore on an
operating income of INR108.24 crores during the year 2012-13 as
against profit after tax of INR3.44 crore on an operating income
of INR96.26 crore during the previous financial year 2011-12.
STAR ROYAL: CRISIL Assigns 'BB-' Rating to INR150MM Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facilities of Star Royal Distributors.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash 150 CRISIL BB-/Stable
Credit Limit
The rating reflects SRD's established relationship with its sole
principal, ITC Ltd (ITC; rated 'CRISIL AAA/Stable/CRISIL A1+'),
and the extensive industry experience of SRD's promoters in the
paper industry. These rating strengths are partially offset by
SRD's below-average financial risk profile, marked by a small net
worth, and its modest scale of operations in the highly fragmented
paper industry.
Outlook: Stable
CRISIL believes that SRD will continue to benefit over the medium
term from the extensive experience of its promoters in the paper
industry. The outlook may be revised to 'Positive' if the firm
increases its scale of operations substantially while improving
its profitability, leading to higher cash accruals and improvement
in its financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of decline in cash accruals or
deterioration in working capital management or significant capital
withdrawal by the promoters.
SRD, set up in 2008, trades in paper and paper-board products of
ITC. The firm is promoted by Mr. Hameed Sulthan and his family
members.
SRD reported a profit after tax (PAT) of INR3.6 million on net
sales of INR445.6 million for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR2.8 million on net sales
of INR350.7 million for 2011-12.
SUYASH CHEMICALS: CARE Revises Rating on INR35.2cr Loan to 'BB-'
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Suyash Chemicals and Fertilizers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 35.20 CARE BB- Revised
Facilities from CARE B+
Rating Rationale
The revision in the long-term rating of the bank facilities of
Suyash Chemicals and Fertilizers Private Limited factors in the
stabilisation in operations of its paper manufacturing unit
resulting in an improvement in debt service coverage indicators
and improvement in the capital structure of the company.
The rating, however, continues to be constrained by its leveraged
capital structure, working capital intensive nature of operations,
relatively short track record of operations of the paper unit and
cyclical nature of the paper and pulp industry. Furthermore, the
rating is also constrained by the fragmented nature of the agro-
processing industry coupled with intense competition.
The rating continues to draw comfort from the experienced
promoters and well established distribution and marketing network
of paper unit. The rating also takes into account the growing
scale of operations with moderate profitability margins.
Going forward, the ability of Suyash Chemicals And Fertilizers
Private Limited to scale up its operation while maintaining its
profitability margins, effective working capital management and
improvement in capital structure shall be the key rating
sensitivities.
Incorporated in 1994, Suyash Chemical & Fertilizer Pvt Ltd is
promoted by the Jaiswal family. The company is engaged in the
processing of wheat into wheat flour, maida, suji, and chokker.
The processing facility is located at Gorakhpur, Uttar Pradesh. In
2009, SCFL also ventured into the manufacturing of kraft paper and
tissue paper at its plant in Basti (UP). The installed capacities
of kraft/tissue paper and wheat flour stood at 39,600 MTPA and
72,000 MTPA, respectively as on March 31, 2013. The company
procures the raw material, ie, waste paper from
the local market with a credit period of up to 11 days and further
sells through a network of distributors across the country.
During FY13 (refers to the period April 01 to March 31), SCFL
achieved a total operating income (TOI) of INR82.83 crore with
profit after tax (PAT) of INR2.58 crore. During H1FY14, SCFL has
achieved a total operating income (TOI) of INR44.97 crore.
TIRUPATHI YARNTEX: ICRA Reaffirms C+ Ratings on INR35.35cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]C+' outstanding
on the INR18.61 crore term loan facilities, INR13.00 crore fund
based facilities, INR0.75 crore non-fund based facilities and
INR2.99 crore proposed facilities of Tirupathi Yarntex Spinners
Private Limited. The short-term rating on the INR1.50 crore non-
fund based facilities has been reaffirmed at '[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Term 18.61 [ICRA]C+/re-affirmed
Loans
Long Term: Fund 13.00 [ICRA]C+/re-affirmed
based facilities
Long Term: Non-fund 0.75 [ICRA]C+/re-affirmed
based facilities
Long Term: Proposed 2.99 [ICRA]C+/re-affirmed
Facilities
Short Term: Non- 1.50 [ICRA]A4/re-affirmed
fund based
facilities
The re-affirmation of the ratings takes into account the Company's
weak financial position characterised by weak capital structure on
account of past accumulated losses and stretched debt protection
metrics, despite recent improvement in operating margins. Though
the revenues and consequently operating margins improved during
2012-13 on the back of revival in yarn demand, net margins were
thin, impacted by high depreciation and interest costs owing to
large debt-funded capital expenditure incurred between 2010-11 and
2011-12. With low accruals and sustained high levels of debt
necessitated by working capital requirements, the capital
structure continues to remain weak with a gearing of 11.4 times
(as on 31.03.2013). The ratings further consider TYSPL's small
scale of operations, which restrict scale economies, and the
intense competition prevalent in the spinning industry which
restricts the Company's pricing flexibility. ICRA, however, takes
into account the experience of the promoters which has supported
the business growth over the years. While the Company does not
have any significant capital expenditure plans for the medium
term, the debt repayment obligations continue to be high at
approximately INR4.0 ? 4.5 crore p.a. over the next three years.
Hence, the Company's ability to sustain the operating margins and
generate strong cash flows will be critical to meet the debt
obligations in a timely manner, and thereby improve its credit
profile. Any decline in demand or sharp uptick in input costs
which could affect profitability of operations is likely to
adversely impact the debt servicing, considering the Company's
small scale of operations and its consequent limited pricing and
financial flexibility.
TYSPL commenced operations as a partnership firm (M/s. Tirupathi
Spinners) with an installed capacity of 2,032 spindles and was
converted into a private limited company in 1996. TYSPL is engaged
in manufacturing of 100% cotton yarn with a manufacturing capacity
of 30,696 spindles. The factory units are present in Rajapalayam
at two separate locations. Unit A has an installed capacity of
19,080 spindles, which produces hank yarn and cone yarn catering
to domestic markets like Tamil Nadu and Maharashtra and Unit B is
installed with around 11,616 spindles of modern equipments produce
cone yarn catering to export markets. The Company is closely held
by the promoters and their family.
Recent Results
For the financial year 2012-13 the Company reported a net profit
of INR0.05 crore on an operating income of INR64.4 crore as
against a net loss of INR2.1 crore on an operating income of
INR56.2 crore during the financial year 2011-12.
TRINITY ENGINEERS: CRISIL Cuts Ratings on INR302.5MM Loan to BB-
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Trinity Engineers Pvt Ltd to 'CRISIL BB-/Stable' from 'CRISIL
BB/Stable' and has reaffirmed its rating on TEPL's short-term bank
facilities at 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase- 20 CRISIL A4+ (Reaffirmed)
Discounting Facility
Cash Credit 280 CRISIL BB-/Stable (Downgraded
from 'CRISIL BB/Stable')
Letter of Credit 20 CRISIL A4+ (Reaffirmed)
Term Loan 22.5 CRISIL BB-/Stable (Downgraded
from 'CRISIL BB/Stable')
The downgrade reflects significantly lower than expected cash
accruals generated by TEPL amid depressed top-line and
profitability. Subdued demand, higher power & fuel and fixed cost,
in 2012-13, have meant that on a y-o-y basis the company's top-
line declined by about 10 per cent while operating margins have
shrunk by about 360 bps to 2.6 per cent. TEPL's ability to arrest
the top-line fall and profitability pressure, while continually
receiving timely fund support from promoters will determine the
rating direction over the medium term.
The ratings continue to reflect TEPL's promoters' extensive
experience in the forging industry. This rating strength is
partially offset by TEPL's average financial risk profile marked
by moderate gearing and debt protection metrics, and vulnerability
of operating margin to increase in raw material price and to
slowdown in demand from its end-user industry.
Outlook: Stable
CRISIL believes that TEPL will continue to benefit from its
promoters' industry experience and their support in ways of
unsecured loans, over the medium term. The outlook may be revised
to 'Positive' in case of significant improvement in TEPL's cash
accruals and capital structure, driven most likely by more-than-
expected profitability and fresh equity infusion. Conversely, the
outlook may be revised to 'Negative' in case of sustained pressure
on TEPL's revenues and profitability resulting into continued
pressure on its accruals and overall liquidity profile.
Incorporated in 1972, TEPL manufactures forgings and machined
components for commercial vehicles. It has production capacity of
30,000 tonnes per annum (tpa). The company's product profile
comprises 450 different components. TEPL is based in the
industrial area of Chinchwad (Pune district, Maharashtra).
TEPL reported a net loss of INR30 million on operating income of
INR1.95 billion for 2012-13; the company reported a PAT of INR38
million on operating income of INR2.2 billion for 2011-12.
TULSI DYE: CRISIL Raises Ratings on INR127.5MM Loans to 'BB+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Tulsi Dye Chem Pvt Ltd to 'CRISIL BB+/Stable' from 'CRISIL
BB/Stable' and reaffirmed its rating on the short-term facilities
'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4+ (Reaffirmed)
Cash Credit 100 CRISIL BB+/Stable (Upgraded
from 'CRISIL BB/Stable')
Overdraft Facility 170 CRISIL A4+ (Reaffirmed)
Proposed Long-Term 27.5 CRISIL BB+/Stable (Upgraded
Bank Loan Facility from 'CRISIL BB/Stable')
Letter of Credit 192. 5 CRISIL A4+ (Reaffirmed)
Letter of Credit 100 CRISIL A4+ (Reaffirmed)
The upgrade reflects CRISIL's expectation that TDCPL's business
and financial risk profiles will continue to improve over the
medium term backed by improvement in margins and total outside
liabilities to total net worth (TOLTNW) ratio. The company's
profitability has consistently improved to 3.3 per cent for 2012-
13 (refers to financial year, April 1 to March 31) from 2.9 per
cent for 2011-12 due to constant change in its product mix and
focus on only high-margin products. With further value addition in
its products and focus on high-value products, the margins are
expected to improve further to 4.5 per cent over the medium term.
Improvement in profitability has resulted in higher-than-expected
accruals, resulting in larger net worth, which has resulted in
improvement in capital structure. Improvement in margins is
expected to improve interest coverage ratio to 2.0 to 2.5 times
over the medium term.
CRISIL believes that with improvement in profitability, TDCPL's
financial risk profile will improve in the medium term.
CRISIL's ratings on the bank facilities of TDCPL continue to
reflect extensive industry experience of TDCPL's promoters and its
moderate scale of operations in the chemical trading business.
These rating strengths are partially offset by TDCPL's moderate
financial risk profile, marked by a high TOLTNW ratio and weak
debt protection metrics and moderate working capital requirements.
Outlook: Stable
CRISIL believes that TDCPL will maintain its credit risk profile
on the back of its promoters' extensive experience in the
chemicals trading business. The outlook may be revised to
'Positive 'in case of higher-than-expected improvement in its
capital structure or interest coverage ratio. Conversely, the
outlook may be revised to 'Negative' if there is increase in
working capital requirements resulting in higher debt for funding
it, thus resulting in deterioration in TDCPL's financial risk
profile or if it undertakes a large debt-funded capital
expenditure.
TDCPL was set up in May 2002 by Mr. Mittul Patel and Mr. Sandip
Parikh. It trades in basic chemicals such as naphthalene, caustic
soda, sulphuric acid, oleum, formaldehyde, and acetone, which have
varied industrial applications in pharmaceuticals, plastics,
rubbers, and dyes-pigments.
TDCPL reported profit after tax (PAT) of INR21.5 million on net
sales of INR2.1 billion for 2012-13 against PAT of INR10.3 million
on net sales of INR1.8 billion for 2011-12.
V-TEX OVERSEAS: ICRA Assigns 'BB' Rating to INR5cr Loans
--------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB' to the INR5.00
crore fund based limits and a short term rating of '[ICRA]A4' to
the INR8.80 crore fund based limits of V-Tex Overseas Pvt. Ltd.
The outlook on the long term rating is stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Cash 5.00 [ICRA]BB (Stable)
Credit Limits assigned
Fund Based Pre- 8.80 [ICRA]A4 assigned
shipment Finance
Limits
The assigned ratings take into account the constrained operating
scale, leveraged capital structure owing to high reliance on
working capital borrowings, stretched liquidity position due to
high inventory holding practised in the business and low net
profitability levels. The ratings are also constrained by the
intense competitive pressures arising out of a fragmented industry
structure and vulnerability of profitability to movement in prices
of key raw materials i.e. griege cloth and yarn, and
susceptibility of operations to cyclicality inherent in the
textile industry.
The ratings, nevertheless, favourably factor in the presence of
group companies in the textile business and the long standing
experience of the promoters in the textile business which has been
instrumental in building a wide distribution network. The ratings
also factor in the locational advantages derived by virtue of
proximity to raw material sources and the backward integration
through installation of twisting units and weaving of greige
fabric which has led to cost benefits.
V-Tex Overseas Pvt. Ltd was incorporated as a private limited
company on 13th September, 2003 by Mr. Anilkumar Kawar, Mr. Ritesh
Kawar and Mr. Vikas Kawar. V-Tex is a group company of Vijay Laxmi
Group that was established in the year 1976 as a small textile
trading firm formed by seven brothers of the Kawar family. Vijay
Laxmi group as a whole has three and a half decade track record in
different lines of business, textile being the primary one. The
company has its registered office in Kalbadevi and a corporate and
administration office in Andheri, Mumbai and a manufacturing
facility in Bhiwandi, on the outskirts of Mumbai.
Recent results:
V-Tex has reported a net profit of INR0.61 crore on an operating
income of INR54.47 crore for the year ending March 31, 2013
(provisional).
VARAD AGRI: ICRA Reaffirms 'BB' Ratings on INR20cr Loans
--------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB' assigned to
the INR17.00 crore fund based limits, INR2.00 crore non fund based
limits and INR1.00 crore unallocated limits of Varad Agri Tech
Limited. The outlook on the long term rating is stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 17.00 [ICRA]BB Stable (reaffirmed)
Unallocated Limits 1.00 [ICRA]BB Stable (reaffirmed)
Non-Fund Based 2.00 [ICRA]BB Stable (reaffirmed)
Limits
The rating reaffirmation factors in the decade long experience of
VATL's promoters in the seed industry resulting in strong
relationships with a wide farmer base and state owned seed
agencies which are VATL's key customers. ICRA also positively
factors in the growth potential for the hybrid seeds market in
India driven by rising demand. The rating is however constrained
by VATL's presence in the commoditized seed market, a highly
competitive and fragmented industry and high geographical
concentration with about 60% of the sales coming from Government
agencies in Andhra Pradesh wherein VATL has been experiencing
minor delays in receivables for the past few years. The rating
also factors in VATL's vulnerability to adverse agro-climatic
conditions. However, ICRA notes that the concentration risks are
decreasing with company's efforts to diversify to other states.
The rating is further constrained by the moderate coverage
indicators and high working capital intensity of business due to
seasonal inventory stocking.
Varad Agri Tech Limited was incorporated in January 1996 and is
engaged in the production and marketing of commercial seeds;
mainly Groundnut, Bengal gram, Sunflower, Dhaincha and soyabean.
VATL produces ~ 60 varieties of commercial seeds of more than a
dozen agricultural crops. The company has a processing plant in
Kadapa district of Andhra Pradesh where the processing and
packaging of commercial seeds is done before they are dispatched
to the customers. VATL is a closely held company and is promoted
by Mr. A. Konda Reddy, Mr. A. Sanjeeva Reddy, Mr. G. Nagi Reddy,
and Mr. K. Surendra Reddy. The promoters are actively involved in
all the operations of the company such as procurement of breeder
seeds, production of foundation and commercial seeds; and selling
of the seeds to the government agencies.
Recent Results
VATL has, for the year ended March 31, 2013, reported an operating
income of INR76.78 crore and a net profit of INR0.94 crore as
against INR58.66 crore and INR0.73 crore respectively for 2011-12.
VISHAL CABLES: ICRA Assigns 'BB' Ratings to INR19.5MM Loans
-----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]BB' and short-term
rating of '[ICRA]A4' to the fund-based and non-fund based limits
aggregating to INR20.00 crore of Vishal Cables Private Limited.
The outlook on the long-term rating is Stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based Limits 0.57 [ICRA]BB (Stable) assigned
(Term Loan)
Fund-based Limits 9.00 [ICRA]BB (Stable) assigned
(Cash Credit)
Proposed/ 9.93 [ICRA]BB (Stable) assigned
Unallocated
Non-fund-based
Limits 0.50 [ICRA]A4 assigned
While arriving at the ratings, ICRA has taken a consolidated view
of the two group entities viz. Vishal Cables Pvt. Ltd. (VCPL) and
Dashmesh Cables (DC) in view of the similar product profile, and
operational & managerial linkages between these two companies.
The assigned ratings are constrained by the modest scale of
operations of the group; the working capital intensive nature of
operations and the high level of competition in the LT power cable
segment, leading to pricing pressures and low bargaining power
with customers. ICRA also notes that the operations in the cable
industry remain exposed to delays in the end-customer projects,
which in-turn could lead to delays in product off-take and weak
order inflows However, the ratings favourably consider the long
track record of the group in the manufacture of LT power cables,
with an established brand name viz. Vishal; the favourable long-
term demand outlook for cables; and the established and
diversified customer base.
Vishal Cables Private Limited was set up in 2008 by Mr. Hirasingh
Ailsinghani and Mr. Dilipsingh Ailsinghani and is engaged in the
manufacture of LT (low tension) power cables comprising of XLPE
(cross-linked polyethylene) insulated and PVC (polyvinyl chloride)
insulated cables for the power and control cable industry
segments. The cables are marketed under its own brand name viz.
"Vishal". The company has its manufacturing facility at MIDC
Ambernath (Maharashtra) with an installed production capacity of
~3000 kilometres (km) of cables per annum.
It's group concern viz. Dashmesh Cables (DC) was set up in 1993
and is in the same line of business as VCPL. DC has its own
manufacturing facility at Ulhasnagar (Maharashtra) with an
installed production capacity of ~3000 km of cables per annum. The
promoter group is planning to set-up an additional manufacturing
unit at Ambernath within VCPL, and subsequently transfer
operations to VCPL over the medium-to-long term.
Recent Results
For the year-ended March 31, 2013, the company reported Operating
Income (OI) of INR27.39 crore and net profit after tax of INR0.59
crore. For the six-months-ended September 30, 2013, the company
reported sales of INR9.45 crore and net profit before tax of
INR0.61 crore (unaudited results).
=================
I N D O N E S I A
=================
MODERNLAND REALTY: Moody's Assigns 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 corporate
family rating to PT Modernland Realty Tbk.
Moody's has also assigned a definitive B2 senior unsecured bond
rating to the USD150 million senior unsecured notes issued by
Modernland Overseas Pte Ltd, an entity wholly owned by Modernland.
The notes are guaranteed by Modernland and its subsidiaries.
The ratings outlook is stable.
Ratings Rationale:
Moody's has removed the provisional status of the corporate family
and senior unsecured bond ratings, affirmed on 17 October. The
rating rationale was set out in a press release issued on that
date and explored more fully in a credit opinion issued on 29
July.
"Following the completion of the acquisition of Jakarta Garden
City last week, Modernland now has access to a healthy land bank,
with an aggregate development life of about 10 years," says
Jacintha Poh, a Moody's Analyst.
"However, we remain cautious about Modernland's ability to execute
the Jakarta Garden City project, without the involvement of its
larger and more experienced former partner, Keppel Land," adds
Poh.
On November 22, Modernland completed the acquisition of a 51%
stake each in in PT Mitra Sindo Sukses and PT Mitra Sindo Makmur -
- together known as Jakarta Garden City -- from Keppel Land
Limited (unrated).
The acquisition is funded in part using the USD150 million in
proceeds from the bond issuance in October, as well as a USD42.5
million bank loan, which is in-line with Moody's expectations.
At the same time, Modernland also entered into a sale and purchase
agreement, selling commercial land plots for USD45.7 million to PT
AEON Mall Indonesia (unrated).
Moody's believe Modernland will be able to generate sufficient
cash flows internally and through land sales to PT Alam Sutera
Realty Tbk (B1 stable) to service its debt maturities over the
next 12-18 months.
As at September 30, Modernland reported cash and bank balances of
IDR460 billion (USD39 million).
The stable outlook reflects Moody's expectation that Modernland
will: (1) maintain financial discipline while pursuing growth; (2)
achieve its sales targets; and (3) grow its operational cash flow;
supported by contractual payments from Alam Sutera over the next
24 months.
Upward rating pressure is unlikely over the near to medium term,
but could emerge if Modernland: (1) successfully implements its
expansion plan, supported by sustained improvements in sales
performance and positive free cash flow generation; (2) lengthens
its debt maturity profile; and (3) demonstrates solid liquidity
through cash balances and committed facilities.
The credit metrics that will support an upgrade include adjusted
EBITDA/interest coverage above 4.0x, adjusted leverage below 45%,
adjusted debt/EBITDA below 3.5x and total revenues of more than
IDR4.0 trillion on a sustained basis.
On the other hand, downward rating pressure could emerge if
Modernland's financial and liquidity profiles weaken, owing to:
(1) problems related to the implementation of its business plan
and difficulties associated with meeting its sales targets,
particularly in relation to Jakarta Garden City; (2) a weakening
of the property market in Indonesia; and (3) a weakening of Alam
Sutera's credit profile, such as to adversely affect Alam Sutera's
ability to service installment payments on land purchases from
Modernland.
Further downward pressure could also emerge if Modernland does not
have a refinancing plan for its US dollar bond issuance well in
advance of the proposed maturity date in October 2016.
Moody's considers the following credit metrics as triggers for a
rating downgrade: adjusted EBITDA/interest coverage below 2.0x,
adjusted leverage above 50%, adjusted debt/EBITDA above 5.0x,
total revenues below IDR1.8-2.0 trillion and negative free cash
flows on a consistent basis.
Established on 8 August 1983, PT Modernland Realty Tbk is an
integrated property developer in Indonesia. It focuses on
industrial town development, as well as residential and township
developments. It also has small exposures to the hospitality and
commercial property segments. The company was listed on the
Jakarta Stock Exchange in 1993, and is 63% owned by the Honoris
family either directly or through various holding companies,
including a 29.75% stake held by AA Land Pte Ltd (unrated).
=========
J A P A N
=========
ORIX-NRL: Moody's Downgrades Class D Notes Rating to Ca(sf)
-----------------------------------------------------------
Moody's Japan K.K. has downgraded the ratings of the Class D
through I trust certificates issued by ORIX-NRL Trust 15.
The affected ratings are as follows:
Class D, downgraded to Ca (sf); previously on September 14, 2011,
downgraded to Caa3 (sf)
Class E, downgraded to C (sf); previously on September 14, 2011,
downgraded to Caa3 (sf)
Class F, downgraded to C (sf); previously on July 28, 2010,
downgraded to Caa3 (sf)
Class G, downgraded to C (sf); previously on July 28, 2010,
downgraded to Caa3 (sf)
Class H, downgraded to C (sf); previously on July 28, 2010,
downgraded to Caa3 (sf)
Class I, downgraded to C (sf); previously on July 28, 2010,
downgraded to Caa3 (sf)
Deal Name: ORIX-NRL Trust 15
Classes: D through I trust certificates
Issue Amount (initial): JPY5.5 billion
Dividend: Floating
Issue Date (initial): September 4, 2007
Final Maturity: June 2014
Underlying Asset (initial): Seven non-recourse loans and three
specified bonds and cash
Originator: ORIX Corporation
Arranger: ORIX Corporation
Ratings Rationale:
The downgrades were prompted by the expected recovery proceeds
from special servicing of the remaining two loans.
Accordingly, Moody's considers that the Class D through I trust
certificates will incur losses after consideration of the size of
the recovery proceeds.
ORIX-NRL Trust 15 is a multi-asset/multi-borrower CMBS deal. It is
currently secured by two loans backed by two retail properties.
Based on the latest special servicer's reports, the potential
recovery proceeds will lead to a partial loss of Class D, and a
total loss of Class E through I trust certificates.
Moody's did not conduct any additional cash flow analysis or
stress scenarios, because the ratings rely on the fixed recovery
proceeds from the special servicing of the underlying assets.
====================
N E W Z E A L A N D
====================
CHORUS LTD: Risks Default on Loans to Build NZ Broadband Network
-----------------------------------------------------------------
Lucy Craymer at The Wall Street Journal reports that when Chorus
Ltd. won the contract to build the bulk of New Zealand's new
national broadband network, company executives saw a golden
opportunity to reverse its flagging fortunes.
But two years later, Chorus said it was at risk of defaulting on
loans to build the network after the country's telecommunications
regulator in November ordered steep cuts in what the company
charges other operators, the Journal says. The cuts of up to 22%,
scheduled for the end of next year, apply to charges for using
Chorus's high-speed-data equipment at local exchanges where there
are no competing providers, the report relates.
The Journal recalls that a year ago Chorus was ordered to cut
wholesale prices for access to copper lines between the local
exchange and people's homes.
But the company said the latest cuts were potentially more
significant, as the loss of revenue could be large enough to
compromise its ability to borrow, the Journal notes. According to
the news agency, Chorus forecasts a hit of up to NZ142 million
(US$115.7 million) to annual earnings and a NZ$1 billion shortfall
in what it needs to finish the broadband network.
"It wasn't what we expected," the report quotes Chorus Chief
Executive Mark Ratcliffe as saying. If the ruling stands, the
company will be "severely challenged in continuing our role in
ultrafast broadband," Mr. Ratcliffe, as cited by the Journal,
said. The network -- which will cost at least NZ$1.7 billion -- is
scheduled to be fully operational by 2019.
The Journal notes that investors have taken flight, sending the
New Zealand company's shares to about half their level at Chorus's
2011 debut, when it was split off from Telecom Corp. of New
Zealand Ltd.
Chorus complained to the government, saying the order violated the
spirit of the Telecommunications Act, the Journal relays.
According to the report, an amendment added to the act at the time
of Chorus's separation said regulators should consider the impact
on a network provider's ability to "innovate" and to the "risks
faced" by those building new services requiring significant
investment. Chorus said it assumed that meant that wholesale
charges on its network would stay roughly constant, the Journal
adds.
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.
NZF MONEY: Serious Fraud Office Closes Investigation
----------------------------------------------------
The Serious Fraud Office confirmed on Nov. 28, 2013, that an
investigation into NZF Money Limited, and other related companies,
has been closed.
NZF Money traded as a finance company and primarily provided
commercial and residential loans. On 22 July 2011, the company was
placed into receivership owing debenture holders approximately
$16.4 million.
The SFO's investigation raised a number of questions relating to:
-- The adequacy of disclosure in NZF Money's prospectuses;
-- The propriety of the sale by NZF Money of NZF Homeloans
Limited to NZF Group Limited;
-- The accuracy of the valuation of NZF Money's assets in the
2010 and 2011 financial statements.
Following a thorough analysis of all material obtained in relation
to alleged suspicious transactions between members of the group,
its directors and officers, the SFO determined that a Crimes Act
prosecution could not be supported.
SFO Director, Julie Read said, "Despite questions being raised,
our analysis has not disclosed sufficient evidence to bring a
prosecution. However, we will be referring the matter to the
Financial Markets Authority so that they may use the information
obtained by the SFO in the course of their inquiry."
Julie Read said the SFO remains open to reconsider its decision if
fresh evidence as to the actual knowledge and intent of those in
control of the company becomes available.
The SFO acknowledge the assistance already received from FMA
throughout the investigation, and will continue to provide
information and assist them with their inquiries.
About NZF Money
NZF Money Limited, previously known as New Zealand Finance
Limited, has been in operation since 1997. The company provides
financial services with its core activity being a diversified
range of services including; investment, lending, insurance and
mortgage broking. NZF Money is the deposit-taking subsidiary of
NZF Group.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 23, 2011, BusinessDesk said NZF Money was put in
receivership in July 2011 after its parent failed to secure
short-term funding needed to keep the finance company afloat.
The shortfall arose after the Financial Markets Authority forced
the company to pull its debenture prospectus which hoped to raise
NZ$350 million over the issues around asset quality and liquidity
disclosure.
The TCR-AP reported on March 23, 2012, that the Serious Fraud
Office said that it has commenced a Part II investigation into
NZF Group Limited, NZF Money Limited, and their related
companies.
SFO and the Financial Markets Authority (FMA) together have been
assessing a range of allegations relating to the conduct of the
group. The primary focus of the SFO assessment relates to alleged
related party transactions between members of the group, its
directors and officers. The transactions cover a period from 2006
to the present.
SOLID ENERGY: Bank of Tokyo Opposes Liquidation of Coal Company
---------------------------------------------------------------
Radio New Zealand News reports that Solid Energy said the Bank of
Tokyo Mitsubishi would lose nearly three-quarters of the
NZ$80 million it is owed if the coal company is liquidated.
Radio NZN says the High Court in Auckland was told November 26 how
the Japanese bank was opposed to liquidation, but also against a
rescue deal where the main lenders swap a portion of their debt
for equity in the company.
According to the report, Solid Energy lawyer Alan Galbraith said
the Bank of Tokyo Mitsubishi is playing down Solid Energy's dire
financial situation because it did not want to take any risk in a
rescue deal -- it only wanted to benefit.
Radio NZN relates that Mr. Galbraith told the court that the bank
did not want to liquidate Solid Energy, because it would only get
back NZ$24 million or less of the NZ$80 million it was owed. He
described it as more than a financial "hair cut", it was a razor
blade shave.
Mr. Galbraith said that the new directors of Solid Energy were
faced with a company in real trouble and needed a rescue package
that would give it a more certain future, the report relays.
However, he said the Bank of Tokyo had given the group of bank
creditors an ultimatum that it would not agree to a rescue deal
involving swapping debt for equity, Radio NZN reports.
The Bank of Tokyo Mitsubishi started legal proceedings against
Solid Energy in October, after refusing to sign up to the
New Zealand Government's restructure deal, the report notes.
As reported in the Troubled Company Reporter-Asia Pacific on
May 22, 2013, The New Zealand Herald said stricken state owned
coal miner Solid Energy's future appears bleak according to a
recently completed report on the company, Prime Minister John Key
had indicated. According to the Herald, Mr. Key said corporate
advisers KordaMentha had just completed their report on the
company which is on the brink of collapse after being crippled by
low coal prices and almost NZ$400 million in debts.
Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.
TACHIKAWA FOREST: Workers May Get Pay Before Christmas
------------------------------------------------------
First Union General Secretary Robert Reid has received an
assurance from Hancock Forest Management that they will not be
seeking any payment from the receivers of Tachikawa Forest
Products ahead of the preferential payment for Tachikawa's former
workers.
Earlier this week, Tachikawa workers had received letters from the
receiver Kordamentha notifying them that their payments would be
held up because of a legal challenge by a forestry company.
Mr. Reid said in a statement that he had also received an update
on November 27 from Kordamentha that the issues with the workers'
payment of wages, redundancy and holiday pay are being progressed,
which may mean that payment can be made before Christmas.
Tachikawa Forest Products (NZ) Ltd was a Rotorua, New Zealand-
based sawmill operator.
Brendon James Gibson and Grant Robert Graham of KordaMentha were
appointed Joint and Several Receivers and Managers of the assets
and undertaking of the Company on Oct. 18, 2013.
=====================
P H I L I P P I N E S
=====================
RURAL BANK OF ALAMINOS: PDIC Advises Borrowers to Pay Loans
-----------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC), the Receiver
of the closed Rural Bank of Alaminos (Laguna), reminded borrowers
of the bank to continue to pay their loans and transact only with
authorized PDIC representatives.
In a statement, PDIC advised borrowers of the Rural Bank of
Alaminos to pay their loans and other obligations directly at any
Philippine National Bank (PNB) Branch under account name, PDIC FAO
BURL ? RURAL BANK OF ALAMINOS with Reference Number 373-0949-
00013. The Receiver cautioned borrowers that it has discontinued
the engagement of the bank's collectors. PDIC has not engaged any
person to collect the loans of the bank. To ensure proper
recording of payments made by borrowers, it further advised
borrowers to keep copies of the PNB Deposit/Payment Slips. The
Receiver emphasized that only payments with validated PNB
Deposit/Payment Slips shall be considered valid payments.
The Monetary Board (MB) placed the Rural Bank of Alaminos under
the receivership of the PDIC by virtue of MB Resolution No. 1875
dated Nov. 14, 2013. As Receiver, PDIC took over the bank on
Nov. 15, 2013. Upon takeover, all bank records were gathered,
verified and validated.
Rural Bank of Alaminos is a three-unit bank located at 99 Rizal
St., Alaminos, Laguna. Its two branches are located in San Pablo,
Laguna and in Sto. Tomas, Batangas.
====================
S O U T H K O R E A
====================
* SOUTH KOREA: Banks' Loan Delinquency Ratio Rises in October
-------------------------------------------------------------
Yonhap News Agency reports that South Korean banks' loan
delinquency rate rose in October from the previous month as fresh
bad debt increased due to the bankruptcy filing made by Tong Yang
Group, the financial watchdog said.
The news agency relates that the overall delinquency rate of bank
loans to companies and households came in at 1.07 percent as of
the end of October, up 0.07 percentage point from the previous
month, according to the Financial Supervisory Service (FSS).
The rate is measured based on the principals of loans that went
overdue for more than one day, Yonhap reports.
According to the report, the FSS said that the amount of fresh bad
debt increased last month as five affiliates of Tong Yang applied
for court receivership in late September.
Yonhap relates that the regulator said local banks disposed of
KRW2.6 trillion (US$2.45 billion) in fresh bad debt in October,
with the soured debt reaching an outstanding KRW12.5 trillion as
of the end of last month.
The delinquency rate for corporate loans came in at 1.25 percent
as of end-October, up 0.13 percentage point from the previous
month, the report discloses.
The FSS said that it will continue to closely monitor local bank's
financial health and to advise them to boost their loss-absorbing
capacity as some ailing large firms are feared to face additional
default, the report adds.
===============
X X X X X X X X
===============
* Cash Flow Biggest Challenge for Asia-Pacific Businesses
---------------------------------------------------------
Maintaining sufficient cash flow is considered the biggest
challenge that businesses in Asia-Pacific have had to face this
year. According to the Atradius Payment Practices Barometer
survey, respondents' B2B customers, particularly foreign
customers, took almost twice the extended payment term to pay for
their credit purchases.
The November 2013 Atradius Payment Practices Barometer, a report
based on feedback from 1,670 B2B suppliers of products and
services in the Asia-Pacific region (Australia, China, Hong Kong,
India, Indonesia, Japan, Singapore and Taiwan) highlights that
33.6% of the respondents in the region considered maintaining
sufficient cash flow levels to be the biggest challenge they have
had to face this year. This was most notable in Singapore were
36.8% of the respondents shared this opinion.
As in other regions across the world, payment defaults have been
more of an issue in 2013. In the Asia-Pacific region,
approximately 30% of the total value of B2B invoices was unpaid at
the due date (In Singapore about 35% was overdue). This was a
bigger problem with foreign invoices than domestic invoices. More
than 5% was uncollectable. (In India about 7% was uncollectable).
As a result of the late and unpaid invoices, there is a 26 day
difference in the average Days Sales Outstanding (56 days) and the
average credit period extended to B2B customers (30 days) recorded
in the Asia-Pacific region. India recorded the highest DSO (80
days) of the countries surveyed in Asia-Pacific.
In the 2013 survey, "liquidity constraints" was considered the
primary reason for payment delays from domestic B2B customers by
50.1% of the respondents. This compared to 53.5% in 2012.
Respondents in Indonesia (63.5%) experienced the most problems
with late payment from domestic customers. Complexity of the
payment procedure is the most cited reason for payment delays by
foreign B2B customers (47.8% of respondents). Chinese respondents
were the most impacted in this respect (61.2%).
Eric den Boogert, Director of Atradius Asia stated, "Despite being
somewhat insulated from the economic difficulties of Western
Europe, Asia-Pacific businesses aren't completely immune. Payment
default, particularly from foreign buyers has presented as much of
an issue in the region as it has in other regions across the
globe. With China slowing its growth, insolvency growth on the
rise in Australia, structural reforms necessary in Indonesia, and
political issues creating greater uncertainty in India, payment
behavior has weakened."
The complete report highlighting the findings of the 2013 edition
of the Atradius Payment Practices Barometer for Asia-Pacific can
be found in the Publications section of the Atradius.com website.
About Atradius
The Atradius Group -- http://www.atradius.com-- provides trade
credit insurance, surety and collections services worldwide. With
a presence through 160 offices in 45 countries, Atradius has
access to credit information on 100 million companies worldwide.
Its products help protect companies throughout the world from
payment risks associated with selling products and services on
credit.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
AACL HOLDINGS LT AAY 39.61 -4.66
AAT CORP LTD AAT 32.50 -13.46
ANAECO LTD ANQ 12.09 -16.38
ARASOR INTERNATI ARR 19.21 -26.51
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
BECTON PROPERTY BEC 267.47 -15.73
BIRON APPAREL LT BIC 19.71 -2.22
CLARITY OSS LTD CYO 28.67 -8.42
CWH RESOURCES LT CWH 12.09 -1.29
HAOMA MINING NL HAO 23.85 -33.70
LANEWAY RESOURCE LNY 10.84 -11.48
MACQUARIE ATLAS MQA 1,643.35 -1,018.17
MISSION NEWENER MBT 10.95 -25.02
NATURAL FUEL LTD NFL 19.38 -121.51
QUICKFLIX LTD QFX 15.84 -1.91
REDBANK ENERGY L AEJ 295.35 -13.08
RENISON CONSO-PP RSNCL 10.84 -11.48
RIVERCITY MOTORW RCY 386.88 -809.14
RUBICOR GROUP LT RUB 60.12 -61.63
STERLING PLANTAT SBI 37.84 -10.78
TZ LTD TZL 26.01 -1.69
CHINA
ANHUI GUOTONG-A 600444 73.14 -9.75
ATLANTIC NAVIGAT ATL 89.78 -6.98
CHANG JIANG-A 520 818.55 -122.68
CHENGDU UNION-A 693 24.18 -30.53
CHINA KEJIAN-A 35 49.24 -299.06
CHINA OILFIELD T COT 18.84 -19.88
HEBEI BAOSHUO -A 600155 101.91 -102.90
HUASU HOLDINGS-A 509 73.01 -35.36
HULUDAO ZINC-A 751 471.13 -546.12
HUNAN TIANYI-A 908 58.94 -11.50
JIANGSU ZHONGDA 600074 351.03 -9.74
JILIN PHARMACE-A 545 32.98 -6.85
QINGDAO YELLOW 600579 139.12 -58.98
SHENZ CHINA BI-A 17 26.30 -279.51
SHENZ CHINA BI-B 200017 26.30 -279.51
SHENZ INTL ENT-A 56 334.77 -70.20
SHENZ INTL ENT-B 200056 334.77 -70.20
SHIJIAZHUANG D-A 958 212.89 -118.63
TAIYUAN TIANLO-A 600234 63.16 -15.00
WUHAN BOILER-B 200770 214.39 -201.83
WUHAN XIANGLON-A 600769 83.73 -85.75
XIAN HONGSHENG-A 600817 138.05 -60.58
HONG KONG
ASIA COAL LTD 835 20.37 -11.89
BIRMINGHAM INTER 2309 63.14 -6.89
BUILDMORE INTL 108 16.89 -47.61
CELEBRATE INTERN 8212 17.15 -3.56
CHINA E-LEARNING 8055 22.22 -2.95
CHINA HEALTHCARE 673 32.51 -25.02
CHINA OCEAN SHIP 651 339.71 -56.14
CHINA ORIENTAL 2371 14.94 -1.53
EFORCE HLDGS LTD 943 63.68 -4.62
FU JI FOOD & CAT 1175 26.40 -153.32
GRANDE HLDG 186 255.10 -208.18
HAO WEN HOLDINGS 8019 20.40 -0.60
ICUBE TECHNOLOGY 139 20.70 -4.03
MASCOTTE HLDGS 136 176.50 -142.02
MELCOLOT LTD 8198 13.19 -28.51
PALADIN LTD 495 162.31 -3.89
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 38.67 -23.83
SURFACE MOUNT SMT 32.88 -10.68
TLT LOTTOTAINMEN 8022 20.48 -3.75
U-RIGHT INTL HLD 627 16.58 -204.32
INDONESIA
APAC CITRA CENT MYTX 187.16 -6.32
ARPENI PRATAMA APOL 416.73 -206.52
ASIA PACIFIC POLY 410.59 -809.94
ICTSI JASA PRIMA KARW 56.78 -1.30
MATAHARI DEPT LPPF 232.55 -190.10
PANCA WIRATAMA PWSI 28.67 -35.63
PERMATA PRIMA SA TKGA 10.70 -1.55
RENUKA COALINDO SQMI 14.81 -1.35
INDIA
ABHISHEK CORPORA ABSC 58.35 -14.51
AGRO DUTCH INDUS ADF 105.49 -3.84
ALPS INDUS LTD ALPI 215.85 -28.22
AMIT SPINNING AMSP 16.21 -6.54
ARTSON ENGR ART 11.81 -10.16
ASHAPURA MINECHE ASMN 167.68 -67.64
ASHIMA LTD ASHM 63.23 -48.94
BELLARY STEELS BSAL 451.68 -108.50
BLUE BIRD INDIA BIRD 122.02 -59.13
CAMBRIDGE TECHNO CTECH 12.77 -7.96
CELEBRITY FASHIO CFLI 27.59 -8.60
CFL CAPITAL FIN CEATF 12.36 -49.56
CHESLIND TEXTILE CTX 20.51 -0.03
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DHARAMSI MORARJI DMCC 21.44 -6.32
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 517.02 -18.42
DISH TV INDI-SLB DITV/S 517.02 -18.42
DUNCANS INDUS DAI 122.76 -227.05
FIBERWEB INDIA FWB 13.22 -9.70
GANESH BENZOPLST GBP 43.90 -18.27
GOLDEN TOBACCO GTO 109.72 -5.01
GSL INDIA LTD GSL 29.86 -42.42
GUJARAT STATE FI GSF 10.26 -303.64
GUPTA SYNTHETICS GUSYN 52.94 -0.50
HARYANA STEEL HYSA 10.83 -5.91
HINDUSTAN SYNTEX HSYN 11.46 -5.39
HMT LTD HMT 123.83 -517.57
INDAGE RESTAURAN IRL 15.11 -2.35
INTEGRAT FINANCE IFC 49.83 -51.32
JAGJANANI TEXTIL JAGT 10.69 -1.88
JCT ELECTRONICS JCTE 88.67 -72.23
JENSON & NIC LTD JN 16.65 -75.51
JOG ENGINEERING VMJ 50.08 -10.08
JYOTHY CONSUMER JYOC 69.07 -31.72
KALYANPUR CEMENT KCEM 24.64 -38.69
KANCO ENTERPRISE KANE 10.59 -4.93
KDL BIOTECH LTD KOPD 14.66 -9.41
KERALA AYURVEDA KERL 13.97 -1.69
KINGFISHER AIR KAIR 1,782.32 -997.63
KINGFISHER A-SLB KAIR/S 1,782.32 -997.63
KITPLY INDS LTD KIT 37.68 -45.35
KM SUGAR MILLS KMSM 19.14 -0.47
LLOYDS FINANCE LYDF 14.71 -10.46
LML LTD LML 50.66 -70.76
MADRAS FERTILIZE MDF 158.91 -64.91
MAHA RASHTRA APE MHAC 22.23 -15.85
MALWA COTTON MCSM 44.14 -24.79
MARKSANS PHARMA MRKS 76.23 -31.89
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 32.97 -3.87
MTZ POLYFILMS LT TBE 31.94 -2.57
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 25.42 -79.20
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 73.10 -51.18
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
QUADRANT TELEVEN QDTV 150.43 -137.48
QUINTEGRA SOLUTI QSL 16.76 -17.45
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE BROADCA RBN 86.71 -0.35
RELIANCE MEDIAWO RMW 425.22 -21.31
RELIANCE MED-SLB RMW/S 425.22 -21.31
REMI METALS GUJA RMM 101.32 -17.12
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 14.42 -73.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 39.67 -11.05
SAURASHTRA CEMEN SRC 89.32 -6.92
SCOOTERS INDIA SCTR 19.75 -13.35
SEN PET INDIA LT SPEN 11.58 -26.67
SHAH ALLOYS LTD SA 213.69 -39.95
SHALIMAR WIRES SWRI 25.78 -38.78
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE RAMA MULTI SRMT 49.29 -25.47
SIDDHARTHA TUBES SDT 75.90 -11.45
SITI CABLE NETWO SCNL 110.69 -14.26
SOUTHERN PETROCH SPET 210.98 -175.98
SPICEJET LTD SJET 386.76 -30.04
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 1,279.23 -219.37
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 24.64 -0.44
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 16.31 -5.93
TAMILNADU JAI TNJB 19.13 -2.69
TATA METALIKS TML 156.70 -5.36
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 20.12 -24.62
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.23 -12.34
TUTICORIN ALKALI TACF 20.48 -16.78
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 159.14 -146.31
UNIWORTH TEXTILE FBW 21.44 -34.74
USHA INDIA LTD USHA 12.06 -54.51
UTTAM VALUE STEE UVSL 510.00 -48.98
VANASTHALI TEXT VTI 25.92 -0.15
VENTURA TEXTILES VRTL 14.33 -1.91
VENUS SUGAR LTD VS 11.06 -1.08
JAPAN
FLIGHT SYS CONSU 3753 10.10 -2.62
HARAKOSAN CO 8894 187.50 -1.90
HIMAWARI HD 8738 251.56 -42.26
INDEX CORP 4835 227.23 -15.54
MISONOZA THEATRI 9664 56.72 -4.80
PROPERST CO LTD 3236 140.82 -353.70
TAIYO BUSSAN KAI 9941 142.90 -0.41
WORLD LOGI CO 9378 34.44 -71.60
KOREA
DAISHIN INFO 20180 740.50 -158.45
DVS KOREA CO LTD 46400 17.40 -1.20
ROCKET ELEC-PFD 425 111.09 -0.42
ROCKET ELECTRIC 420 111.09 -0.42
SHINIL ENG CO 14350 199.04 -2.53
SSANGYONG ENGINE 12650 1,231.13 -119.47
TEC & CO 8900 139.98 -16.61
WOONGJIN HOLDING 16880 2,197.34 -635.50
MALAYSIA
HO HUP CONSTR CO HO 54.37 -16.70
LFE CORP BHD LFE 39.65 -0.70
PUNCAK NIA HLD B PNH 4,400.41 -24.59
VTI VINTAGE BHD VTI 17.74 -3.63
NEW ZEALAND
NZF GROUP LTD NZF 11.69 -4.60
PULSE UTILITIES PLU 14.58 -4.84
PHILIPPINES
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
PICOP RESOURCES PCP 105.66 -23.33
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 48.74 -2.27
HL GLOBAL ENTERP HLGE 83.11 -4.63
SCIGEN LTD-CUFS SIE 68.70 -42.35
TT INTERNATIONAL TTI 227.86 -88.73
ZHONGXIN FRUIT NLH 19.34 -5.25
THAILAND
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
CALIFORNIA W-NVD CAWOW-R 28.07 -11.94
CALIFORNIA WO-FO CAWOW/F 28.07 -11.94
CALIFORNIA WOW X CAWOW 28.07 -11.94
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
M LINK ASIA CORP MLINK 83.61 -7.85
M LINK ASIA-FOR MLINK/F 83.61 -7.85
M LINK ASIA-NVDR MLINK-R 83.61 -7.85
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
SHUN THAI RUBBER STHAI 19.89 -0.59
SHUN THAI RUBB-F STHAI/F 19.89 -0.59
SHUN THAI RUBB-N STHAI-R 19.89 -0.59
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TAIWAN
BEHAVIOR TECH CO 2341S 30.90 -0.22
BEHAVIOR TECH-EC 2341O 30.90 -0.22
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
IDM INTERNATIONA IDM 30.99 -23.62
POWERCHIP SEM-EC 5346S 2,036.01 -52.74
*********
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 ***