/raid1/www/Hosts/bankrupt/TCRAP_Public/140128.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, January 28, 2014, Vol. 17, No. 19
Headlines
A U S T R A L I A
BILLABONG INT'L: Shareholders Group Wants Jan 30 Meeting Deferred
TIGER AIRWAYS: Posts AUD16MM Loss in Third Quarter Ended Dec. 31
* AUSTRALIA: 1,500 Bookstores Closed, Another 300 Set to Go
C H I N A
SHANXI ZHENFU: China Credit Trust Reaches Pact on Troubled Trust
I N D I A
AI COTTON: CARE Reaffirms 'B+' Rating on INR14.51cr LT Loans
ANANTA PROCON: ICRA Suspends 'B+' Rating on INR3cr Long Term Loan
ARCH PHARMALABS: CARE Reaffirms D Ratings on INR1,858.75cr Loans
AVON ORGANICS: CARE Revises Rating on INR187.83cr Loans to 'D'
BUSH FOODS: CRISIL Lowers Rating on INR7.10BB Loans to 'D'
DR. NARENDRA: CRISIL Rates INR110MM Long Term Loan at 'B'
GARG DUPLEX: ICRA Reaffirms 'B+' Rating on INR10cr Loans
HONOURABLE PACKAGING: CARE Assigns 'B+' Rating to INR2.70cr Loans
INTERNATIONAL LAND: CARE Assigns 'B+' Rating to INR23.61cr Loans
JAY CHAMUNDA: ICRA Suspends 'B' Ratings on INR5.25cr Loans
K.J.L. POULTRIES: CRISIL Reports Enhanced B-Rated Loan Amounts
KARUTURI GLOBAL: ICRA Lowers Rating on INR72.5cr Loans to 'C'
MD. QUIYAMUDDIN: CRISIL Assigns 'B+' Rating to INR88.4MM Loans
MAHAVIR SPINFAB: CRISIL Assigns 'B' Ratings to INR58.6MM Loans
MARGO PLYWOOD: CARE Assigns 'B+' Rating to INR4.35cr LT Loans
MINI DIAMONDS: ICRA Reaffirms 'B' Rating on INR1cr Long Term Loan
MURLI ELECTRODE: CARE Assigns 'B+' Rating to INR7cr Lt Loans
OSWAL SYNTHETICS: ICRA Suspends 'B+' Rating on INR9.11cr Loans
P.L.A FOODS: CRISIL Assigns 'B+' Ratings to INR60MM Loans
PRINT SOLUTIONS: CRISIL Assigns 'D' Rating to INR110MM Loan
RAMNIKLAL & SONS: CARE Assigns 'B+' Rating to INR12.50cr Loans
SANSKAR CERAMICS: CARE Assigns 'B+' Rating to INR11.35cr LT Loans
SAURER EMBROIDERY: CRISIL Reaffirms 'D' Rating on INR125MM Loans
SHANTI JANAK: CRISIL Rates INR150MM Term Loan at 'B-'
SHIV SHIPPING: CARE Rates INR20cr Long-Term Loans at 'B+'
SHRI RAM: CRISIL Reaffirms 'B' Rating on INR160MM Loans
SJLT SPINNING: ICRA Upgrades Ratings on INR44.91cr Loans to 'B+'
SJLT TEXTILES: ICRA Upgrades Ratings on INR95.34cr Loans to 'B+'
SRI LAKSHMINARASIMHA: CRISIL Reaffirms B Rating on INR410.3M Loan
SRI RAVICHANDRA: CRISIL Assigns 'B+' Rating to INR330MM Loans
SVR SPINNING: ICRA Assigns 'B' Rating to INR17cr Long Term Loans
TDI INTERNATIONAL: ICRA Assigns 'B' Ratings to INR72.62cr Loans
UNIBIOS LABORATORIES: ICRA Cuts Rating on INR43.86cr Loans to 'D'
VAMSEE OVERSEAS: ICRA Withdraws C Rating on INR13.75cr Term Loan
VENUS GARMENTS: CRISIL Reports Enhanced 'B+'-Rated Loan Amounts
VIKAS BUILDERS: CRISIL Assigns 'B' Rating to INR150MM Term Loan
VIZAG EXPORTS: ICRA Suspends 'B+' Rating on INR10cr Loan
WEST COAST: CARE Reaffirms 'B' Rating on INR5cr Long-Term Loans
X X X X X X X X
* BOND PRICING: For the Week Jan. 20 to Jan. 24, 2014
- - - - -
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A U S T R A L I A
=================
BILLABONG INT'L: Shareholders Group Wants Jan 30 Meeting Deferred
-----------------------------------------------------------------
Louise Brannelly at Gold Coast Bulletin reports that the
Australian Shareholders' Association wants Billabong
International's shareholder meeting on Jan. 30 deferred.
According to the report, it only wants the general meeting to
proceed if the embattled Gold Coast-based surfwear group releases
its December half-year results before the vote and provides more
details on its strategic plan.
Gold Coast Bulletin says the meeting is to approve the $135
million placement of shares to two US private equity firms,
Centerbridge and Oaktree, as part of a restructure deal.
According to the report, ASA policy and engagement co-ordinator
Stephen Mayne said it was unprecedented for a former ASX100
company outside the mining sector to fall into foreign hands
through a heavily discounted selective share placement.
"Billabong shares closed at 65› on Jan. 24 yet shareholders are
being asked to issue $135 million worth of new shares equivalent
to more than 40 per cent of the company at just 41› a share," the
report quotes Mr. Mayne as saying.
"Before seemingly selling the company on the cheap, investors
deserve to be told the December half results, which the insiders
proposing this deal are presumably well across."
The report relates that Mr. Mayne said that the ASA's
recommendation on the placement would be decided after reviewing
more information.
"Companies like The Reject Shop and GUD Holdings have already
released their half-year results, so it is unreasonable for
Billabong to withhold this information as shareholders vote to
give away control at a discount," Mr. Mayne, as cited by Gold
Coast Bulleting, said.
About Billabong
Based in Australia, Billabong International Limited (ASX:BBG) --
http://www.billabongbiz.com/-- is engaged in the wholesaling and
retailing of surf, skate, snow and sports apparel, accessories and
hardware, and the licensing of its trademarks to specified regions
of the world.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 28, 2013, Bloomberg News said Billabong has closed 158
stores, canceled relationships with three-quarters of its
suppliers, and is cutting 15 percent of jobs in its European
division.
The value of its 13 brands fell to AUD90 million at the end of
June 2013 from AUD614 million in December 2011, and the Billabong
label itself is worthless, the company said in its financial
statements, Bloomberg said. About AUD37 million of group brand
value was locked up in the DaKine outdoor clothing and backpack
label which Billabong sold to Altamont last month, relayed
Bloomberg. Four other brands, including Element skateboards and
Palmers surfboard accessories, were also written down to a zero
valuation, according to the statements cited by Bloomberg.
Full-year losses widened to AUD860 million in the year ended
June 2013 from a AUD276 million loss in the previous 12 months,
compared to the AUD547 million average loss expected from four
analysts surveyed by Bloomberg. A 14 percent fall in sales put
revenue below the company's operating costs and the company took a
loan from Altamont Capital Partners to refinance its debt,
Bloomberg added.
TIGER AIRWAYS: Posts AUD16MM Loss in Third Quarter Ended Dec. 31
----------------------------------------------------------------
Steve Creedy at The Australian reports that Tigerair Australia
recorded a loss of more than AUD16 million for the third quarter
as it contributed to a loss of SGD118.5 million (AUD105.8 million)
at part-owner Tiger Airways Holdings.
The report relates that Singapore-based TAH, which now owns 40 per
cent of the Australian low-cost carrier after selling a 60 per
cent stake to Virgin Australia, said its share of the loss at
Tiger Australia for the quarter ended December 31 amounted to
SGD7.4 million, making the total loss SGD18.5 million.
The Australian carrier lost SGD18.25 million in the second quarter
bringing its first-half loss to almost SGD37 million, the report
relates.
Virgin, which took over its 60 per cent share on July 7, will take
the majority hit for the loss but was unable to say what the final
Australian dollar figure would be, according to the report.
"We are unable to comment as we are still auditing our results,"
the report quotes a spokeswoman as saying. "We will provide an
update on Tigerair Australia's performance at our half-year
results in February."
The Australian reports that TAH's third-quarter loss included
exceptional charges of AUD88.3 million, including a AUD30.3
million loss for the disposal of Tigerair Philippines to Cebu
Pacific, and compared with a net profit of SGD2 million for the
same period the previous year.
According to the report, TAH warned it continued to face near-term
pressure on yield and load factors in what is a seasonally quiet
time of the year "amid an overcapacity in the industry".
The Australian relates that despite a 9.2 per cent increase in
traffic, revenue at core operation Tigerair fell by 2.9 per cent
to SGD168 million as yields fell 11.3 per cent and load factors
dropped 9.8 percentage points to 75.8 per cent.
Based in Melbourne, Victoria, Tiger Airways Australia Pty Ltd,
operating as Tigerair Australia, is an ultra-low cost airline. It
is a subsidiary of Tiger Airways Holdings, a Singapore-based
company. Tigerair Australia now operates 12 aircraft in Australia
on 17 domestic routes.
* AUSTRALIA: 1,500 Bookstores Closed, Another 300 Set to Go
-----------------------------------------------------------
Myriam Robin at SmartCompany reports that there were 4,430
bookstores in Australia during the 2004-05 financial year. Now,
there are just 2,921 bookstores owned by 2,700 companies, and
industry forecaster IBISWorld isn't optimistic for those that
remain.
SmartCompany relates that a new report by IBISWorld analyst
Claudia Burgio-Ficca said that industry revenue will decline 8.1%
during the coming financial year, with annual revenue declines
moderating after that. By 2018-19, the forecaster believes annual
revenue falls will stabilise to just 3.8% a year, SmartCompany
relays.
According to SmartCompany, Ms. Burgio-Ficca said it's been a
perfect storm for booksellers over the past five years. On the one
hand, retail generally has had a challenging time, battling low
consumer sentiment and lacklustre spending.
SmartCompany adds that the industry is also facing structural
change, with a rising breed of online-only booksellers operating
with leaner business models, broader catalogues and lower prices
forcing the industry to cut costs and become far more competitive.
SmartCompany says discount booksellers haven't helped either.
IBISWorld notes that discount department stores have increasingly
been making bulk purchases of books, and then offering them at
bargain-basement prices to customers during key selling periods
such as Christmas, according to SmartCompany. This limits the
ability of bookstores to profit from the flurry of gift-buying at
the time.
"Bookstores have fought to stay afloat," SmartCompany quotes Ms.
Burgio-Ficca as saying. "A host of issues have plagued the
industry. "As a result, profitability has trended downwards."
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C H I N A
=========
SHANXI ZHENFU: China Credit Trust Reaches Pact on Troubled Trust
----------------------------------------------------------------
Bloomberg News reports that China Credit Trust Co. said it reached
an agreement on a potential investment in a troubled high-yield
product distributed by Industrial & Commercial Bank of China Ltd.
People who had put their money into the Credit Equals Gold No. 1
trust product should contact their ICBC financial adviser for more
details, the Beijing-based trust company said in a statement to
those investors on its website on Jan. 27, Bloomberg relates.
Additional details weren't immediately disclosed.
According to Bloomberg, the 3 billion-yuan ($496 million) product
was due to mature Jan. 31. The investment was structured to raise
funds for coal miner Shanxi Zhenfu Energy Group, which collapsed
after its owner Wang Pingyan was arrested in 2012 for illegally
collecting deposits, the report notes.
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I N D I A
=========
AI COTTON: CARE Reaffirms 'B+' Rating on INR14.51cr LT Loans
------------------------------------------------------------
CARE reaffirms the rating assigned to bank facilities of Ai Cotton
Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 14.51 CARE B+ Reaffirmed
Facilities
The rating assigned by CARE is based on the capital deployed by
the proprietor and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of the
capital or the unsecured loans brought by the proprietor in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of AI Cotton Industries
(ACI) continue to remain constrained on account of its small scale
of operations and its financial risk profile marked by thin
profitability, leveraged capital structure, weak debt coverage
indicators and working capital intensive nature of operations with
the elongated operating cycle. The ratings further remain
constrained on account of its presence in a highly fragmented
industry, susceptibility of ACI's profitability to cotton price
fluctuation, seasonality associated with the availability of
cotton crop & linkages with the international cotton prices and
exposure to changes in the government policy for cotton.
The ratings, however, continue to take into account the benefits
derived from the wide experience of the promoters in the cotton
industry and ACI's proximity to the cotton-producing region of
Gujarat.
ACI's ability to increase its scale of operations and improvement
in profitability while managing volatility associated with the
cotton prices and better working capital management are the key
rating sensitivities.
ACI was established in December, 2007 as a sole proprietor ship
firm by Mr Rasiklal Thakker and is engaged in the cotton ginning
and pressing activity in Kutch (Gujarat). It has an installed
capacity of 5,940 Metric Tonnes per Annum (MTPA) for cotton bales,
11,031 MTPA for cotton seeds and 160 MTPA for cotton wash oil at
its sole manufacturing unit located in Kutch, Gujarat.
During FY13 (refers to the period April 1 to March 31), ACI
achieved Profit after Tax (PAT) of INR0.09 crore on a Total
Operating Income (TOI) of INR48.12 crore as against PAT of INR0.08
crore on a TOI of 45.71 crore in FY12. ACI reported TOI of
INR19.50 crore till December 31, 2013 (provisional).
ANANTA PROCON: ICRA Suspends 'B+' Rating on INR3cr Long Term Loan
-----------------------------------------------------------------
ICRA has suspended the '[ICRA]B+' rating assigned to the INR3.00
crore long-term fund-based limits & [ICRA]A4 rating assigned to
the INR6.00 crore short-term non fund-based bank limits of Ananta
Procon Private Limited. The suspension follows ICRAs inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 3.00 [ICRA]B+ suspended
Based: Cash
Credit Limit
Short Term-Non 6.00 [ICRA]A4 suspended
Fund Based
Incorporated in 2011, APPL is engaged in civil construction work
for bridges, land fillings, etc. for state government departments
as well as private agencies located in Gujarat state. The company
was incorporated by Mr. Kanji A Patel along with other promoters
who are already engaged in the civil construction segment through
another entity, Rakesh Construction Co. APPL has "AA" class
contractor registration from government of Gujarat.
ARCH PHARMALABS: CARE Reaffirms D Ratings on INR1,858.75cr Loans
----------------------------------------------------------------
CARE reaffirms the rating assigned the bank facilities of Arch
Pharmalabs Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 1,333.75 CARE D Reaffirmed
Short-term Bank
Facilities 525.00 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the ratings assigned to the bank facilities
of Arch Pharmalabs Limited factors in the ongoing delays in the
servicing of rated debt obligations due to the weak liquidity
profile of APL.
Arch Pharmalabs Ltd, originally incorporated in April 1993 as
Merven Drug Products (P) Limited, is engaged in the manufacturing
of API/intermediates and also offers CRAMS. APL has 11 multi-
purpose manufacturing facilities (including two facilities owned
by its subsidiary) across Maharashtra (six), Andhra Pradesh (four)
and Gurgaon, Haryana. Out of these facilities, three are USFDA-
approved (including one owned by Avon Organics Limited) and one of
the USFDA units has also been approved by EDQM, TGA-Australia and
PMDA-Japan. The company also has its corporate R&D center located
at Taloja.
During FY13 (refers to the period April 1 to March 31), on a
consolidated basis, APL reported a net loss of INR154.35 crore on
a total income of INR2,277.73 crore as against profit after tax of
INR105.95 crore on a total income of INR1,792.80 crore during
FY12.
AVON ORGANICS: CARE Revises Rating on INR187.83cr Loans to 'D'
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities and
Commercial Paper of Avon Organics Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 100.33 CARE D Revised
Facilities from CARE B
Short-term Bank 47.50 CARE D Revised
Facilities from CARE A4
Commercial Paper 40 CARE D Revised
Issue (carved out from CARE A4
of working capital
limits)
Rating Rationale
The revision of the ratings assigned to the bank facilities and
instruments of Avon Organics Limited factors in the ongoing delays
in the servicing of rated debt obligations due to the weak
liquidity profile of AOL.
Avon Organics Ltd, incorporated in 1993 as a public limited
company, was promoted by Mr P R Agarwal, Mr Rajesh Agarwal and
late Dr G S Sidhu. The company is engaged in the manufacturing of
bulk drugs and chemicals with manufacturing facilities in Solapur,
Maharashtra, and Sadasivpet, Andhra Pradesh. In FY08 (refers to
the period April 1 to March 31), Arch Pharmalabs Ltd (APL)
acquired majority stake in the company. As on September 30, 2012,
APL's equity shareholding in AOL was 63.60%.
During FY13, AOL registered a Profit after tax (PAT) of INR8.27
crore on a total operating income of INR170.15 crore against a PAT
of INR10.07 crore on a total operating income of INR166.84 crore
in FY12.
As per the unaudited financials of H1FY14, the company reported
net loss of INR15.78 crore on a total operating income of INR39.25
crore as compared with a PAT of INR5.01 crore on a total operating
income of INR87.13 crore in H1FY13.
BUSH FOODS: CRISIL Lowers Rating on INR7.10BB Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Bush
Foods Overseas Pvt Ltd to 'CRISIL D/CRISIL D', from 'CRISIL
BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1,980 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Cash Credit 1,850 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 500 CRISIL D (Downgraded from
'CRISIL A4+')
Packing Credit 2,670 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Proposed Long Term 100 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB+/Stable')
The rating downgrade reflects persistent instances of overdue
packing credit bills for more than 30 consecutive days.
Bush Foods also has an average financial risk profile, marked by a
modest capital structure and below-average debt protection
metrics. Moreover, it has highly working-capital-intensive
operations, and is exposed to increasing competition and to
regulatory risks in the basmati rice industry. However, Bush Foods
has an established position in the branded basmati rice segment,
and is expected to benefit from its strong parent, Hassad
Netherlands BV (HNBV), a subsidiary of Hassad Food Company (HFC);
HFC is a 100-per-cent subsidiary of Qatar Investment Authority
(QIA), the sovereign wealth fund of Qatar.
Bush Foods was originally set up as a partnership firm in 1992 by
Mr. Virkaran Awasty; the firm was reconstituted as a private
limited company in 2005. Bush Foods mills and processes basmati
rice for the domestic and export markets. The company markets its
basmati rice under the brands Neesa, Indian Star, and Himalayan
Crown, with Neesa being the dominant brand. Bush Foods'
manufacturing unit is in Sonepat (Haryana). In March 2013, HNBV
acquired a controlling stake in Bush Foods.
For 2012-13 (refers to financial year, April 1 to March 31), Bush
Foods reported, on a provisional basis, a profit after tax (PAT)
of INR448.9 million on net sales of INR15.33 billion; the company
reported a PAT of INR453.1 million on net sales of INR10.50
billion for 2011-12.
DR. NARENDRA: CRISIL Rates INR110MM Long Term Loan at 'B'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Dr. Narendra V. Vaidya.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 110 CRISIL B/Stable (Assigned)
Bank Loan Facility
The rating reflects DNVV's modest scale, and limited track record
of operations; and a below-average financial risk profile, marked
by its modest net worth, high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive industry experience of the proprietor and his
established brand presence in Pune through the other hospitals run
under the brand Lokamanya by the group.
Outlook: Stable
CRISIL believes that DNVV will benefit from the extensive industry
experience of its proprietor, and an established brand presence in
Pune, over the medium term. The outlook may be revised to
'Positive' if the firm records a better-than-expected increase in
the scale of its operations and profitability, resulting in
better-than-expected cash accruals and financial risk profile.
Conversely, the outlook may be revised to 'Negative' if DNVV's
financial risk profile, particularly its liquidity further
weakens, led by lower-than-expected cash accruals or delayed
funding support from the proprietor.
DNVV was established in 2013 and operates a 30-bed super specialty
hospital in Pune under the brand Lokamanya, specializing in
orthopaedic treatments. DNVV is a sole proprietorship owned by Dr.
Narendra Vidyadhar Vaidya, and commenced operations of its
hospital in January 2014.
GARG DUPLEX: ICRA Reaffirms 'B+' Rating on INR10cr Loans
--------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' and '[ICRA]A4' ratings assigned
to the INR11.00 Crore bank limits of Garg Duplex & Paper Mills
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 7.00 [ICRA]B+ reaffirmed
Fund Based Working
Capital Limits 3.00 [ICRA]B+ reaffirmed
Non Fund Based
Working Capital
Limits 1.0 [ICRA]A4 reaffirmed
The ratings are constrained by the high business risks inherent in
Kraft paper business attributed to high fragmentation and
competition resulting in limited pricing power and vulnerability
of contribution margins and profitability to volatility in raw
material prices. These factors apart, the ratings are also
constrained by the weak financial risk profile characterized by
low profitability and return indicators and stretched liquidity.
Additionally the large debt funded capex undertaken by the company
for setting up a chemical recovery plant is expected to depress
the debt coverage metrics due to large repayments going forward.
Nevertheless, ICRA has favourably factored in long track record of
GDPM's promoters in kraft paper manufacturing business; favourable
demand outlook for kraft paper driven by growth in end user
industries and proximity of the manufacturing facilities to Delhi
and NCR region which are the major markets for kraft paper in
North India resulting in easy access to raw material markets and a
large customer base.
Garg Duplex & Paper Mills (P) Limited was incorporated in 1985.
The company took over an already running plant (which was set up
in 1989) at Muzaffarnagar in the state of Uttar Pradesh in 1991.
The company is engaged in the manufacturing of Kraft paper of
burst factor 16. At the time the plant was set up its
manufacturing capacity was 8000 MTPA but over the years the
capacity was increased and is currently 25,000 tonnes per annum.
Recent Results
In FY13 the company reported a net profit of INR0.21 crore on net
sales of INR22.97 crore as against a net profit of INR0.60 crore
on net sales of INR36.58 crores in FY12.
HONOURABLE PACKAGING: CARE Assigns 'B+' Rating to INR2.70cr Loans
-----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Honourable Packaging Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2.70 CARE B+ Assigned
Facilities
Short-term Bank
Facilities 5.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Honourable
Packaging Private Limited are primarily constrained on account of
its short track record of operations, low net-worth base, the
ongoing large-sized debt-funded capex and its moderate debt
coverage indicators and moderate liquidity position. Furthermore,
the ratings are also constrained by its presence in a highly
competitive and fragmented industry and high dependence on the
group concerns as its customers.
The ratings, however, derive strength from the wide experience of
the promoters in the plastic and plastic packaging industry,
operational synergies between the group companies and government
support for technical textiles.
The ability of HPPL to increase its scale of operations in the
highly competitive scenario, improve its profitability while
efficiently managing its working capital requirements and
successful implementation of its ongoing capex are the key rating
sensitivities.
Dhar-based (Madhya Pradesh), HPPL was promoted by the Agarwal
family in 2011. HPPL is engaged in the manufacturing of
reprocessed plastic granules and liner. Presently, HPPL sources
raw material i e plastic waste from its parent company, Shree
Tirupati Balajee Agro Trading Company Private Limited. The
manufacturing facilities of HPPL are located at Pithampur, Madhya
Pradesh having an installed manufacturing capacity of 150 metric
tonnes per month (MTPM) for reprocessing granules and 80 MTPM for
manufacturing of liner as on March 31, 2013.
HPPL belongs to the Agarwal group of companies with its flagship
company, STB engaged in the manufacturing of Flexible Intermediate
Bulk Containers (FIBC), jumbo bags, HDPE sacks, polypropylene (PP)
woven laminated and non-laminated sacks, fabric sacks and
tarpaulins. The group has been present in the industry segment for
more than a decade and thus has a long-standing experience in the
segment with established clientele.
During FY13 (refers to the period April 1 to March 31), HPPL
reported a PAT of INR0.21 crore on a total operating income (TOI)
of INR7.03 crore as against a PAT of INR0.01 crore on a TOI of
INR3.44 crore in FY12. During H1FY14 (provisional), HPPL achieved
sales of INR3.95 crore.
INTERNATIONAL LAND: CARE Assigns 'B+' Rating to INR23.61cr Loans
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of
International Land Developers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 23.61 CARE B+ Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of International Land
Developers Private Limited is constrained by the limited track
record of company's operation, nascent stage of both ongoing
projects leading to high off-take and execution risk. The rating
is further constrained by the high funding risk as the debt is not
tied up and a major portion of the promoter's fund are yet to be
infused & slow down in the real estate sector. However, the rating
derives strength from the experienced and resourceful promoters.
Going forward, the ability of the promoters to timely infuse
funds, achieve financial closure of the project and ensure smooth
project execution while also achieving the estimated sales
projections would be the key rating sensitivities.
Incorporated in 2006, International Land Developers Pvt Limited is
part of the ILD group and is promoted by Mr Alimuddin Rafi Ahmed,
a science graduate with an experience of more than 12 years in the
real estate industry. Presently ILD group is engaged in developing
two group housing societies in Sohna, Gurgaon (through other group
companies) and plans to launch two other group housing societies
in ILDPL. ILDPL has taken land for both the projects under
collaboration agreement with the land owners (agreement already
executed). However both these projects are at very initial stages.
The total estimated cost for the project in sector 33, Sohna,
Gurgaon is estimated to be INR313.44 crore and proposed to be
funded by the promoter's contribution of INR101.18 crore, debt
(not tied up) of INR75 crore and INR137.26 crore from customer
advances. As on December 24, 2013, ILDPL has incurred INR34.65
crore on the development of project funded through the promoter
equity of INR16.6 and remaining through customer advances.
The other project in sector 36, Sohna, Gurgaon is at very initial
stages and the company has proposed to launch the same during the
second half of FY15 (refers to the period April 1 to March 31).
JAY CHAMUNDA: ICRA Suspends 'B' Ratings on INR5.25cr Loans
----------------------------------------------------------
ICRA has suspended the '[ICRA]B' rating assigned to the INR5.25
crore long-term fund-based limits of Jay Chamunda Cold Storage.
The suspension follows ICRAs inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 2.25 [ICRA]B suspended
Based Limits-
Cash Credit
Long Term-Fund 3.00 [ICRA]B suspended
Based Limits-
Term Loan
Jay Chamunda Cold Storage was incorporated in 2010, and started
commercial operations from February 2011. The firm is located at
Deesa, Gujarat; it is engaged in the business of providing cold
storage facility and provides service for storage of potatoes. The
total storage capacity of the cold storage is 1, 45,000 bags of 50
kg each.
K.J.L. POULTRIES: CRISIL Reports Enhanced B-Rated Loan Amounts
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of K.J.L.
Poultries Private Limited (KJL; part of the Sri Lakshmi Narasimha
group) continues to reflect the Sri Lakshminarasimha group's weak
financial risk profile marked by high gearing and weak debt
protection metrics, and vulnerability to intense competition and
to risks inherent in the poultry industry. These rating weaknesses
are partially offset by the extensive experience of the Sri
Lakshmi Narasimha group's promoters in the poultry industry and
its established relationships with major customers.
Rated amount enhanced
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 330 CRISIL B/Stable
Long Term Loan 295.8 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 48.2 CRISIL B/Stable
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Sri Lakshminarasimha Poultry Farms
Private Limited (SLNP) and K.J.L. Poultries Pvt Ltd, together
referred to as the Sri Lakshmi Narasimha group. This is because
both the companies are under a common management and have
considerable operational and business synergies with each other.
Outlook: Stable
CRISIL believes that the Sri Lakshmi Narasimha group will benefit
over the medium term from its promoters' extensive industry
experience. The outlook may be revised to 'Positive' if the
group's financial risk profile improves, driven most likely by
significant improvement in revenues and profitability. Conversely,
the outlook may be revised to 'Negative' if the group's financial
risk profile weakens due to larger-than-expected, debt-funded
capital expenditure (capex), or a substantial decline in revenues
and profitability.
Update
The Sri Lakshmi Narasimha group's revenues for 2012-13 (refers to
financial year, April 1 to March 31) increased to INR1144 million
from INR474 million in 2011-12, due to increased demand for the
group's poultry products. However, the operating profitability
declined to 9.3 per cent for 2012-13 from 14.7 per cent for 2011-
12, due to increased input costs, thereby partially offsetting the
favourable impact of healthy growth in revenues. The group has
reported revenues of INR750 million for the six months ended
September 30, 2013.
The Sri Lakshmi Narasimha group continues to have a weak financial
risk profile, marked by a moderate net worth and high gearing. The
group had a net worth of INR205 million and a gearing of 4.8 times
as on March 31, 2013. Despite the absence of any significant debt-
funded capex plans over the medium term, the gearing is expected
to remain high over the medium term, due to the group's increased
dependence on borrowed funds to meet the working capital
requirements.
Also, the group has weak liquidity, marked by high bank limit
utilisation and tightly matched cash accruals vis-a-vis debt
obligations. The group's bank lines were utilised at an average 90
per cent over the 12 months through September 2013. It is expected
to generate net cash accruals of INR71 million during 2013-14,
which are just sufficient to meet its debt obligations of INR70
million maturing during the year.
The Sri Lakshmi Narasimha group reported a net loss of INR6
million on net sales of INR1144 million for 2012-13, as against a
profit after tax of INR0.3 million on net sales of INR474 million
for 2011-12.
Set up in 2004, SLNP is engaged in the poultry business. SLNP is
promoted by Mr. Satyanarayana Raju and his family members.
Set up in 2011, KJL is also engaged in the poultry business. KJL
is also promoted by Mr. Satyanarayana Raju and his family members.
KARUTURI GLOBAL: ICRA Lowers Rating on INR72.5cr Loans to 'C'
-------------------------------------------------------------
ICRA has revised the rating assigned to INR50 crore Term Loan and
INR22.5 crore Fund Based Limits of Karuturi Global Limited from
'[ICRA]B+' to '[ICRA]C'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan 50.0 Downgraded to [ICRA] C
Fund Based Limits 22.5 Downgraded to [ICRA] C
The revision of the ratings factors in the delays in debt
servicing by the Company.
KGL, promoted by Mr. Ramakrishna Karuturi in 1994, is a leading
producer of cut roses globally. Currently KGL, as a group, has
rose farms in three leading low cost countries - India, Ethiopia
and Kenya, producing about 580 million stems on approx 289
hectares of land. Besides selling in domestic markets, the company
exports roses to Europe, South East Asia, Middle East, North
America, Australia, Japan, and New Zealand; exports constitute
about 90% of KGL's revenues.
Backed by its experience in Ethiopia and Kenya, Karuturi has
forayed into an ambitious agriculture project. It has acquired
311,000 hectare of land on leasehold basis from the Ethiopian
government in Bako (11,000 hectares) & Gambella (300,000
hectares). These shall be developed in a phased manner, with
90,000 hectares of land in Gambella and 11,700 hectares in Bako
coming under cultivation in the first phase of development.
The group has other businesses- namely flower retailing, food
processing, and telecom. However, the relative scale of operation
of these businesses is much smaller.
Recent Results
In FY13 Karuturi recorded Profit after tax (PAT) of INR154.6 crore
on an operating income (OI) of INR559.9 crore. In FY12 Karuturi
had recorded PAT of INR142.5 crore on an OI of INR563.1 crore.
According to unaudited results, the company had recorded a net
profit of INR3.6 crore on an OI of INR135.6 crore In Q1 FY14 and
net profit of INR12.2 crore on OI of INR94.9 crore in Q2 FY14.
MD. QUIYAMUDDIN: CRISIL Assigns 'B+' Rating to INR88.4MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Md. Quiyamuddin Khan Engineers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 18.4 CRISIL B+/Stable
Letter of Credit 10 CRISIL A4
Bank Guarantee 31.6 CRISIL A4
Cash Credit 70 CRISIL B+/Stable
The ratings reflect QKEPL's small scale and working-capital-
intensive operations in the highly fragmented civil construction
industry, and customer concentration in its revenue profile. These
rating weaknesses are partially offset by the extensive experience
of QKEPL's promoters in the civil construction industry and its
moderate operating profitability.
Outlook: Stable
CRISIL believes that QKEPL will benefit over the medium term from
its promoters' extensive experience in the civil construction
industry. The outlook may be revised to 'Positive' if QKEPL
strengthens its business risk profile through improvement in its
scale of operations or through greater customer and geographical
diversity, or in case of improvement in overall financial risk
profile, particularly liquidity, driven by better-than-expected
working capital management, or if the company's promoters infuse
capital resulting in improved risk absorption capacity.
Conversely, lower-than-expected accruals or stretch in working
capital or in case the company undertakes any significant debt-
funded capital expenditure programme, leading to deterioration in
its liquidity, may lead to a revision in the outlook to
'Negative'.
QKEPL, promoted in August 2010 by members of the Ranchi
(Jharkhand)-based family of Mr. Manzar Imam Khan, is engaged in
civil construction business; primarily construction of roads in
Jharkhand and Bihar. The company mainly executes contracts for
road construction departments of Jharkhand and Bihar.
MAHAVIR SPINFAB: CRISIL Assigns 'B' Ratings to INR58.6MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' rating to the
bank facilities of Mahavir Spinfab Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 38.6 CRISIL B/Stable
Post Shipment Credit 80 CRISIL A4
Cash Credit 20 CRISIL B/Stable
Packing Credit 60 CRISIL A4
The rating reflects the company's average financial risk profile
marked by high gearing, working-capital-intensive operations, and
business risk profile vulnerability to the economic scenario in
overseas market. These rating weaknesses are partially offset by
MSPL's established presence in the specialized textile segment and
diversified revenue profile.
Outlook: Stable
CRISIL believes that MSPL will maintain its credit risk profile
with its established presence in the specialized textile segment.
The outlook may be revised to 'Positive' in the event of an
increase in the MSPL's scale of operations along with improvement
in its operating margin driven by backward integration and
effective working capital management, leading to an improvement in
its financial risk profile. The outlook may be revised to
'Negative' if MSPL's working capital management deteriorates or
the MSPL undertakes larger than expected debt-funded capital
expenditure (capex) programme.
MSPL was founded by Mr. Rakesh Jain in 1995.MSPL manufactures work
wear fabric and clothing including technical textile fabric and
garments used in various industries such as oil and gas, molten
metal, and healthcare with its corporate office at Kanpur, Uttar
Pradesh.
For 2012-13 (refers to financial year, April 1 to March 31), MSPL
reported a profit of INR12.7 million on net sales of INR525.5
million, against a profit of INR15.3 million on net sales of
INR583.7 million in 2011-12.
MARGO PLYWOOD: CARE Assigns 'B+' Rating to INR4.35cr LT Loans
-------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Margo Plywood Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.35 CARE B+ Assigned
Facilities
Short-term Bank
Facilities 12.71 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Margo Plywood
Private limited are primarily constrained on account of its low
profitability, moderate leverage, weak debt coverage indicators
and liquidity position. Furthermore, the ratings are also
constrained by its modest scale of operations in a highly
competitive and fragmented industry, vulnerability of
profitability to raw material price and foreign exchange
fluctuations, its presence in limited product line and its
fortunes linked to the cyclical real estate sector.
The ratings, however, derive strength from the wide experience of
the partners in the industry and proximity to Kandla Port.
The ability of MPPL to enhance its scale of operations and improve
its profitability and liquidity position with efficient working
capital management are the key rating sensitivities.
Kutch-based (Gujarat) MPPL, incorporated on August 26, 2008, is
promoted by Mr Sandeep Gupta and Mr Ajay Gupta. It is engaged in
the manufacturing of plywood, block board and flush door with an
installed capacity of 960,000 square meters per annum (smpa). The
company procures raw material (timber logs) mainly from Singapore,
Vietnam and Malaysia and sells its final products in the local
market in the states of Gujarat, Rajasthan, Punjab, Uttar Pradesh
and Maharashtra etc.
During FY13 (refers to the period April 1 to March 31), MPPL
reported a PAT of INR0.17 crore on a TOI of INR20.85 crore as
against a PAT of INR0.13 crore on a TOI of INR13.81 crore in FY12.
During 9MFY14 (provisional), MPPL achieved sales of INR21 crore.
MINI DIAMONDS: ICRA Reaffirms 'B' Rating on INR1cr Long Term Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]B' to the
INR1.00 crore long-term, fund based limits of Mini Diamonds
(India) Limited. ICRA has also reaffirmed the short term rating of
'[ICRA]A4' to the INR4.00 crore short term fund based limits of
the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, Fund- 1.00 [ICRA]B reaffirmed
based limits
Short-term, Fund- 4.00 [ICRA]A4 reaffirmed
based limits
The ratings reaffirmation take into account long standing
experience of the promoters in the cut and polished diamond
industry spanning over four decades and the healthy revenue growth
on account of higher share of traded goods sales. ICRA also notes
the established customer base in key international markets of Hong
Kong and Belgium; and expansion into Middle East markets during
the current fiscal.
The ratings are, however, constrained on account of the company's
small scale of operations and low operating margins which remain
vulnerable to fluctuations in foreign exchange rates, although the
risk is partially offset by the natural hedge from the import of
rough diamonds. The ratings are further constrained on account of
the stretched capital structure and weak coverage indicators;
stretched receivable days and high working capital intensity
inherent to the nature of the industry. ICRA further notes the
significant proportion of related party transactions with sales to
and purchases from group companies. The company operates in a
highly competitive diamond industry marked by the presence of a
large number of organized and unorganized players resulting in low
pricing power for small scale players like MDIL and the same
constrains the ratings further.
Incorporated in the year 1987, Mini Diamonds (India) Limited is
promoted by Mr Upendra Shah and Mr Himanshu Shah. The company is
engaged in manufacturing and trading of cut and polished diamonds
(CPDs) and trading of rough diamonds. Initially formed as Kini
Gems Private Limited, the company came out with a public issue in
1991 and is listed on the Bombay Stock Exchange. MDIL primarily
caters to the export market with Hong Kong, Belgium and Dubai
being the major export countries. The company is also involved in
the manufacturing of studded jewellery. However, the contribution
of the same to the total income remains negligible.
The company has its CPD manufacturing unit located in Dahisar
(Mumbai) and the jewellery manufacturing unit is located at SEEPZ
(Mumbai). The registered office of the company is located in
Bandra, Mumbai.
Recent results:
As per the audited results for FY 2013, MDIL reported Profit after
Tax (PAT) of INR0.18 crore on an Operating Income (OI) of INR43.46
crore. As per the unaudited results for H1FY2014, MDIL reported
Profit after Tax (PAT) of INR0.09 crore on an Operating Income
(OI) of INR60.81 crore.
MURLI ELECTRODE: CARE Assigns 'B+' Rating to INR7cr Lt Loans
------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Murli Electrode Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 7 CARE B+ Assigned
Short-term Bank
Facilities 2 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Murli Electrode
Private Limited are primarily constrained by its weak financial
risk profile marked by the declining turnover with thin profit
margins, elongated working capital cycle and weak debt protection
indicators. The ratings are further constrained by the small scale
of operations along with presence in a highly fragmented
engineering industry leading to intense competition,
susceptibility of operating margins to raw material price
fluctuation, and susceptibility to slow down in the end-user
industry.
The ratings, however, derive strength from the experience of the
promoters along with the long track record of the operations of
the company and wide dealer distribution network.
The ability of MEPL to increase its scale of operations with an
improvement in the profitability margins, and effective management
of the working capital are the key rating sensitivities.
Nagpur-based, Murli Electrodes Private Limited was incorporated on
June 23, 1998, by Mr Murli Maloo, Mr Mahesh Maloo, Mr Dinesh Maloo
and Mr Harish Maloo. MEPL is engaged in the manufacturing of
various types of welding electrodes, welding consumables and Metal
Inert Gas (MIG) wires. The company sells its products in 10 states
apart from Maharashtra, Madhya Pradesh, Goa and Gujarat under the
brand names of Wonder Weld, Fast Weld, Super Weld and Murli 6013.
MEPL operates from its manufacturing facilities located in
Nagpur,Maharashtra with an installed capacity of 14,400 Metric
Tonnes Per Annum (MTPA) as on March 31, 2013 for welding rods and
360 MT for MIG wires with an average utilization of around 65% and
80% respectively.
MEPL belongs to the Murli Group and is a sister concern of Murli
Industries Limited Nagpur, which has earned a prestigious position
in the fields of production of cement, paper, solvent extractions
and power generation.
During FY13 (refers to the period of April 1 to March 31), MEPL
earned a PAT of INR0.11 crore on a total operating income of
INR11.90 crore as against a PAT of INR0.14 crore on a total income
of INR17.02 crore in FY12.
OSWAL SYNTHETICS: ICRA Suspends 'B+' Rating on INR9.11cr Loans
--------------------------------------------------------------
ICRA has suspended '[ICRA]B+' rating assigned to the INR9.11 Crore
bank facilities of Oswal Synthetics Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of requisite information from the
company.
Incorporated in 2006, Oswal Synthetics Private Limited is a
Bhilwara, Rajasthan based weaver engaged in manufacturing and
trading of fabric. OSPL has installed capacity of weaving 66 lac
metre fabrics per annum, and has yarn doubling capacity of 0.18
million KG per annum. The company is promoted by Mr. Laxman Singh
Babel, who has over a decade of experience in the textile
business. Before the commissioning of weaving operations in this
company, Mr. Babel was engaged in fabric trading.
In 2011-12, OSPL reported operating income (OI) of INR13.15 crore
and OPBITDA of INR1.68 crore against OI of INR11.17 and OPBITDA of
INR1.11 crore reported in 2010-11.
P.L.A FOODS: CRISIL Assigns 'B+' Ratings to INR60MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term
bank facilities of P.L.A Foods Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 29.5 CRISIL B+/Stable
Cash Credit 20 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 10.5 CRISIL B+/Stable
The rating reflects PLA's modest scale of operations in the highly
fragmented rice industry, subdued financial risk profile marked by
a modest net worth, high gearing and weak debt protection metrics,
and susceptibility of operating margin to regulatory and paddy
price changes. These rating weaknesses are partially offset by the
extensive industry experience of promoters in the rice milling
industry.
For arriving at PLA's rating, CRISIL has consolidated the business
and financial profile of PLA with its group entity, Nainital Agro
Products (NAP), on account of common management, procurement and
similar line of operations.
Outlook: Stable
CRISIL believes that PLA will continue to benefit over the medium
term from its partners extensive experience in the rice milling
industry. The outlook may be revised to 'Positive' in case the
group achieves significant and sustained improvement in its
revenues and margins, while improving its capital structure.
Conversely, the outlook may be revised to 'Negative' in case the
group registers significant decline in its revenues or margins, or
undertakes a large debt-funded capital expenditure programme,
resulting in weakening of its financial risk profile.
PLA was incorporated in March 2012 by Mr. Aman Goel. The company
is engaged in milling of paddy into processed rice. Its rice mill
is located in Rudrapur (Uttrakhand). The Goel family, headed by
Mr. Pramod Goel, has been engaged in rice milling since 1990,
through - NAP, based in Haldwani (Uttarakhand).
PLA reported a profit after tax (PAT) of INR 0.5 million on net
sales of INR 266.9 million for 2012-13 (refers to financial year,
April 1 to March 31), which was its first year of operations.
PRINT SOLUTIONS: CRISIL Assigns 'D' Rating to INR110MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long term bank
facility of Print Solutions Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 110 CRISIL D
The rating reflects instances of delay by PSPL in servicing its
debt; the delays have been caused by the company's weak liquidity.
The rating also reflects risks related to timely completion of its
ongoing project and its below-average financial risk profile,
marked by a small net worth and aggressive funding pattern. These
rating weaknesses are partially offset by the benefits that the
company derives from its promoters' extensive experience in the
real estate industry.
PSPL incorporated in 2006, has a presence in the printing and
publishing business, in addition to conducting real estate
activities. The company belongs to the Chhabra group, and is
promoted by Mr. Gurjeet Singh Chhabra. The company is constructing
a hotel in Indore which is to be leased out.
RAMNIKLAL & SONS: CARE Assigns 'B+' Rating to INR12.50cr Loans
--------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' to the bank facilities of
Ramniklal & Sons.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 12.50 CARE B+ Assigned
Short-term Bank
Facilities 5.00 CARE A4 Assigned
Rating Rationale
The ratings of the bank facilities of Ramniklal & Sons are
primarily constrained by the relatively modest scale of
operations, low profitability margins, moderately leveraged
capital structure, stressed debt coverage indicators and elongated
operating cycle. The ratings are further constrained by customer
concentration risk, foreign exchange fluctuation risk, presence in
the highly competitive and fragmented gems and jewellery (G&J)
industry and the partnership nature of constitution.
The ratings derive strength from the experience of the partners in
the gems & jewellery business of over three decades, strong
established relations with the reputed customers and financial
support of the partners in the past.
The ability of R&S to scale up its operation and also improve its
profitability amidst the increasing competition along with
efficient management of working capital cycle are the key rating
sensitivities.
Established in 1998, as a partnership firm, R&S is engaged in the
making of diamond and gems stones studded jewellery, mainly for
the high-end market. In addition, the firm is also engaged in the
trading of diamonds, [consisting 45% of overall sales in FY13
(refers to the period April 1 to March 31)], as per the
requirement of its clients. Moreover, R&S exports to clients
mainly in Dubai and Kuwait [consisting 45% of sales in FY13].
During FY13, R&S recorded a total operating income of INR41.24
crore [up by 19.73% vis-a-vis FY12] and a PAT of INR0.34 crore
[down by 5.91% vis-a-vis FY12]. During H1FY14, R&S posted a PBT of
INR1.37 crore on total sales of INR30.18 crore.
SANSKAR CERAMICS: CARE Assigns 'B+' Rating to INR11.35cr LT Loans
-----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Sanskar Ceramics Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.35 CARE B+ Assigned
Facilities
Short-term Bank 1.40 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Sanskar Ceramics
Private Limited are mainly constrained on account of project
implementation and stabilization risk for the greenfield project
undertaken for manufacturing glazed wall tiles. The ratings are
further constrained by its presence in the competitive segment of
the tile industry along with linkages with the cyclical real
estate industry and susceptibility of its profitability to
volatile raw material and natural gas prices.
The ratings, however, favorably take into account the vast
experience of the promoters in the ceramic tiles industry and
presence of its manufacturing unit in the Morbi ceramic cluster.
Timely completion of the project within the envisaged cost and
ability to achieve the envisaged level of sales & profitability
are the key rating sensitivities.
Incorporated in the year 2013, SCPL is set up to manufacture
glazed ceramic wall tiles. SCPL is promoted by two promoters
namely Mr Vasantlal Patel and Mr Ranchhodbhai Marvania who look
after the entire operations of the company. SCPL has undertaken a
greenfield project to manufacture glazed ceramic wall tiles with a
proposed installed capacity of 38,880 metric tonnes per annum
(MTPA) at its facilities located at Morbi in Rajkot district which
is the ceramic tile manufacturing hub of Gujarat. The total
project cost is estimated to be INR14.60 crore (including margin
for the working capital) which is to be funded through a term loan
of INR7.35 crore, equity of INR5 crore and the balance by way of
unsecured loans.
SAURER EMBROIDERY: CRISIL Reaffirms 'D' Rating on INR125MM Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Saurer Embroidery
Systems (India) Pvt Ltd continue to reflect instances of delay by
the company in servicing its debt, because of weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 11 CRISIL D (Reaffirmed)
Bill Discounting 5 CRISIL D (Reaffirmed)
Cash Credit 31.5 CRISIL D (Reaffirmed)
Packing Credit 2.5 CRISIL D (Reaffirmed)
Term Loan 75 CRISIL D (Reaffirmed)
SES continues to have working-capital-intensive operations, as
indicated by its high gross current assets (GCAs) of 260 days of
sales as on March 31, 2012. The company is also exposed to risks
related to its small scale of operations and to any slowdown in
the textile industry. SES continues to benefit from its position
as the exclusive marketing agency in India for the Switzerland-
based shuttle embroidery machine manufacturer, Oerlikon Saurer
Arbon AG (Saurer); and from the extensive industry experience of
its promoters.
Incorporated in 1997, SES is a 50:50 joint venture between the
Khanna family and Saurer, a leading Swiss manufacturer of shuttle
embroidery machines. The Indian promoters, Mr. Anil Khanna and his
sons, hold 75 per cent of the company's shares.
SES is the sole marketing and servicing agent for Saurer products
in India. In 2001, the company diversified into embroidery
manufacturing, which accounts for nearly 90 per cent of its
revenues; the remainder is generated from the agency division.
SES's plant in Gurgaon (Haryana) has 14 installed shuttle
embroidery machines, and is fully utilised during the peak season.
The company also has a marketing office in Bengaluru (Karnataka)
for its agency division.
SHANTI JANAK: CRISIL Rates INR150MM Term Loan at 'B-'
-----------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long term
bank facility of Shanti Janak Estates Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 150 CRISIL B-/Stable
The rating reflects SJEPL's exposure to demand, implementation and
funding risks on its ongoing project. These weaknesses are
partially offset by the benefits that SJEPL derives from its
promoters' extensive experience and financial support.
Outlook: Stable
CRISIL believes that SJEPL will continue to benefit over the
medium term from its promoters' extensive experience in developing
and running educational institutes. The outlook may be revised to
'Positive' if the company completes its project, and collects
lease rentals on time to service its maturing debt, and
strengthens its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if delays in ongoing project, or low
lease rentals weaken SJEPL's financial risk profile.
Set up in 2010 and promoted by the Sachdeva family, SJEPL is
constructing a school in Gurgaon for the Shanti Janak Educational
Trust (SJET) run by the same promoters.
SHIV SHIPPING: CARE Rates INR20cr Long-Term Loans at 'B+'
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Shiv
Shipping Services.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 20 CARE B+ Assigned
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of the
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Shiv Shipping
Services is constrained primarily on account of its low net-worth
base, fluctuating profit margins and leveraged capital structure.
The rating further takes into account its presence in a highly
fragmented and competitive logistic industry.
The rating, however, derives strength from the wide experience of
the partners and steady increase in the scale of operations.
The ability of SSS to increase its scale of operations, improve
its profitability and capital structure are the key rating
sensitivities.
SSS was formed as a partnership firm in September 1998 by Mr
Dharmesh Thaker and Mr V Anantharaman with an equal profit/loss
sharing ratio. SSS provides port-related services, transportation
and warehousing facilities to its clients who export or import
goods mainly through Kandla port, Gujarat.
SSS also has associate concerns namely Omkar Enterprise and Shiv
Shipping Logistics.
During FY13 (refers to the period April 1 to March 31), SSS
reported a total operating income of INR74.27 crore (FY12:
INR58.20 crore) and PAT of INR2.18 crore (FY12: PAT of INR2.10
crore). During 9MFY14 (provisional), SSS achieved sales of
INR72.20 crore.
SHRI RAM: CRISIL Reaffirms 'B' Rating on INR160MM Loans
-------------------------------------------------------
CRISIL's rating on the bank facilities of Shri Ram Rice Unit
continues to reflect SRU's below-average financial risk profile,
marked by a small net worth, high gearing, and below-average debt
protection metrics, susceptibility to erratic rainfall, and
working-capital-intensive nature of operations. These rating
weaknesses are partially offset by the promoters' extensive
experience in the rice processing industry, and benefits expected
from the healthy growth prospects for the industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 125.0 CRISIL B/Stable (Reaffirmed)
Packing Credit 240.0 CRISIL A4 (Reaffirmed)
Proposed Long-Term
Bank Loan Facility 35.0 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SRU will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SRU's cash accruals
improve due to substantial increase in its scale of operations, or
in case of significant improvement in its capital structure.
Conversely, the outlook may be revised to 'Negative' if the firm's
liquidity weakens due to lower-than-expected cash accruals or
higher-than-expected working capital requirements, or if the firm
undertakes a larger-than-expected debt-funded capex programme.
Update
The improvement in the firm's business risk profile is expected to
continue with the growing sales of the firm. The firm clocked
sales growth of 68% with INR1236.1 million of sales during 2012-13
as against INR734.1 of sales during the previous year. The
increase in sales has been driven by increased sales to the
existing customers and addition of new customers in the export
market. However, the firm's operating margins witnessed a decline
with the firm registering margins of 3.5 per cent during the year
2012-13 as against 5.7 per cent during the previous year. The
margins have been falling because of the increasing price of paddy
during the year.
The firm's financial risk profile is expected to remain weak in
the medium term riven by the small net worth and high gearing of
the firm. The firm had a net worth of INR31.2 million with a
gearing of 14.43 times as on March 31, 2013. The gearing continues
to remain high because of the high dependence of the firm on bank
funding to meet the large working capital requirements especially
during the peak paddy procuring season. Driven by the low
profitability of the firm, the debt protection metrics also
remained weak with NCATD and interest coverage of 0.02 times and
1.39 times respectively as on March 31, 2013. The firm's liquidity
is expected to remain adequate with expected cash accruals of more
than INR10 million during 2013-14 against no fixed repayment
obligation. Also, the firm's working capital bank line remained
utilized at an average of 51 per cent for the 12 months ending
through September 2013 which further supports the liquidity.
CRISIL believes that the firm's financial risk profile will
continue to remain weak driven by the small net worth and high
gearing which is a result of large working capital requirements.
In 2012-13, SRU reported a profit after tax (PAT) of INR6.5
million on net sales of INR1236.1 million, as against a PAT of
INR3.3 million on net sales of INR734.1 million for 2011-12.
Established in 1991, SRU is a partnership firm promoted by Mr.
Sadhu Ram, Mr. Ravinder Kumar, Mr. Parmod Kumar, Mr. Vijay Kumar,
and Mr. Sanjay Kumar. The firm is engaged in the milling and
processing of rice, which includes both basmati and non-basmati
varieties. The firm has a processing unit at Taraori (Punjab).
SJLT SPINNING: ICRA Upgrades Ratings on INR44.91cr Loans to 'B+'
----------------------------------------------------------------
ICRA has upgraded the long-term rating outstanding on the INR18.67
term loan facilities (enhanced from INR15.57 crore), the INR20.00
fund based facilities and INR6.24 crore proposed facilities
(enhanced from INR0.00) of SJLT Spinning Mills Private Limited to
'[ICRA]B+' from '[ICRA]B'. The short-term rating on the INR3.00
crore fund based facilities and the INR10.00 crore non-fund based
facilities has been re-affirmed at '[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Term 18.67 [ICRA]B+/upgraded from
Loans [ICRA]B
Long Term: Fund 20.00 [ICRA]B+/upgraded from
based facilities [ICRA]B
Long Term: Proposed 6.24 [ICRA]B+/upgraded from
Facilities [ICRA]B
Short Term: Fund 3.00 [ICRA]A4/re-affirmed
based facilities
Short Term: Non- 10.00 [ICRA]A4/ re-affirmed
fund based facilities
ICRA has considered the consolidated business and financial
profiles of SSMPL and SJLT Textiles Private Limited due to common
promoter/management and similar lines of business. These two
entities are collectively referred to as "SJLT Group".
The rating action takes into account the improvement in the
Group's operating performance during 2012-13 driven by increase in
volumes and realizations on the back of favourable demand for
yarn, and expansion in operating margins aided by better product
mix coupled with stable cotton prices during the period. Resultant
healthy accruals shored up the Group's capital structure with
gearing coming down to 3.7 times as on March 31, 2013 (as against
5.7 times earlier), albeit continuing to remain at fairly high
levels. Given the sustained improvement in the Group's performance
during the current fiscal (2013-14) as well on the back of
favorable demand, greater mix of high margin compact yarn, stable
power supply, coupled with prudent capacity additions undertaken
to cater to the demand, ICRA expects the Group's profitability and
accruals to improve. However, the ratings are constrained by the
intense competition given the highly fragmented nature of the
domestic spinning industry which restricts pricing flexibility and
the exposure of the Group's earnings to fluctuations in cotton and
yarn prices further accentuating the risk. Given large debt
repayment obligation of INR14.5 to INR16.0 crore p.a. over the
next three years and incremental obligations that are expected to
arise from the proposed term loans to support the debt-funded
capital expenditure (INR30.0 crore) planned in the next two years,
ability of the Group to sustain the improvement in revenues and
profit margins, and thereby improve the cash flows, is critical to
meet these obligations in a timely manner. Any decline in demand
owing to persistent weak economic sentiments or decline in
realisations fuelled by release of large Chinese cotton reserves
could adversely affect profitability of operations and would
remain a key sensitivity for the ratings.
SJLT Spinning Mills Private Limited incorporated in 2004 by Mr. V.
Jagatheesan and Mr. V Selvadurai, is primarily engaged in
producing cotton yarn with a capacity of 50,688 spindles. SSMPL
derives majority of its revenue from domestic markets. The Company
sells through agents and also through its own depots at Tirupur /
Erode (Tamil Nadu). The Company is closely held by the promoters
and their family. The promoters are also engaged in the businesses
of logistics and granite exports for the past three decades.
SJLT TEXTILES: ICRA Upgrades Ratings on INR95.34cr Loans to 'B+'
----------------------------------------------------------------
ICRA has upgraded the long-term rating outstanding on the INR62.84
term loan facilities and the INR32.50 fund based facilities of
SJLT Textiles Private Limited to '[ICRA]B+' from '[ICRA]B'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Term 62.84 [ICRA]B+/upgraded from
Loans [ICRA]B
Long Term: Fund
based facilities 32.50 [ICRA]B+/upgraded from
[ICRA]B
ICRA has considered the consolidated business and financial
profiles of SSMPL and SJLT Textiles Private Limited due to common
promoter/management and similar lines of business. These two
entities are collectively referred to as "SJLT Group".
The rating action takes into account the improvement in the
Group's operating performance during 2012-13 driven by increase in
volumes and realizations on the back of favourable demand for
yarn, and expansion in operating margins aided by better product
mix coupled with stable cotton prices during the period. Resultant
healthy accruals shored up the Group's capital structure with
gearing coming down to 3.7 times as on March 31, 2013 (as against
5.7 times earlier), albeit continuing to remain at fairly high
levels. Given the sustained improvement in the Group's performance
during the current fiscal (2013-14) as well on the back of
favourable demand, greater mix of high margin compact yarn, stable
power supply, coupled with prudent capacity additions undertaken
to cater to the demand, ICRA expects the Group's profitability and
accruals to improve. However, the ratings are constrained by the
intense competition given the highly fragmented nature of the
domestic spinning industry which restricts pricing flexibility and
the exposure of the Group's earnings to fluctuations in cotton and
yarn prices further accentuating the risk. Given large debt
repayment obligation of INR14.5 to INR16.0 crore p.a. over the
next three years and incremental obligations that are expected to
arise from the proposed term loans to support the debt-funded
capital expenditure (INR30.0 crore) planned in the next two years,
ability of the Group to sustain the improvement in revenues and
profit margins, and thereby improve the cash flows, is critical to
meet these obligations in a timely manner. Any decline in demand
owing to persistent weak economic sentiments or decline in
realisations fuelled by release of large Chinese cotton reserves
could adversely affect profitability of operations and would
remain a key sensitivity for the ratings.
SJLT Textiles Private Limited, incorporated in 1994 by Mr. V.
Jagatheesan and Mr. V. Selvadurai, is primarily engaged in
producing cotton yarn with a capacity of 91,248 spindles. STPL
derives majority of its revenues from domestic markets. The
Company sells through agents and also through its own depots at
Tirupur/Erode (Tamil Nadu). The Company is closely held by the
promoters and promoters' family. The promoters are also engaged in
the businesses of logistics and granite exports for the past three
decades.
Recent Results
For the financial year 2012-13, the entity reported net profit of
INR11.4 crore on an operating income of INR149.8 crore as against
a net loss of INR18.2 crore on an operating income of INR103.6
crore for the financial year 2011-12.
SRI LAKSHMINARASIMHA: CRISIL Reaffirms B Rating on INR410.3M Loan
-----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sri
Lakshminarasimha Poultry Farms Pvt Ltd (part of the Sri Lakshmi
Narasimha group) continues to reflect the Sri Lakshminarasimha
group's weak financial risk profile marked by high gearing and
weak debt protection metrics, and vulnerability to intense
competition and to risks inherent in the poultry industry. These
rating weaknesses are partially offset by the extensive experience
of the Sri Lakshmi Narasimha group's promoters in the poultry
industry and its established relationships with major customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 235.3 CRISIL B/Stable (Reaffirmed)
Long Term Loan 175 CRISIL B/Stable (Reaffirmed)
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of SLNP and K.J.L. Poultries Pvt Ltd,
together referred to as the Sri Lakshmi Narasimha group. This is
because both the companies are under a common management and have
considerable operational and business synergies with each other.
Outlook: Stable
CRISIL believes that the Sri Lakshmi Narasimha group will benefit
over the medium term from its promoters' extensive industry
experience. The outlook may be revised to 'Positive' if the
group's financial risk profile improves, driven most likely by
significant improvement in revenues and profitability. Conversely,
the outlook may be revised to 'Negative' if the group's financial
risk profile weakens due to larger-than-expected, debt-funded
capital expenditure (capex), or a substantial decline in revenues
and profitability.
Update
The Sri Lakshmi Narasimha group's revenues for 2012-13 (refers to
financial year, April 1 to March 31) increased to INR1144 million
from INR474 million in 2011-12, due to increased demand for the
group's poultry products. However, the operating profitability
declined to 9.3 per cent for 2012-13 from 14.7 per cent for 2011-
12, due to increased input costs, thereby partially offsetting the
favourable impact of healthy growth in revenues. The group has
reported revenues of INR750 million for the six months ended
September 30, 2013.
The Sri Lakshmi Narasimha group continues to have a weak financial
risk profile, marked by a moderate net worth and high gearing. The
group had a net worth of INR205 million and a gearing of 4.8 times
as on March 31, 2013. Despite the absence of any significant debt-
funded capex plans over the medium term, the gearing is expected
to remain high over the medium term, due to the group's increased
dependence on borrowed funds to meet the working capital
requirements.
Also, the group has weak liquidity, marked by high bank limit
utilisation and tightly matched cash accruals vis-a-vis debt
obligations. The group's bank lines were utilised at an average 90
per cent over the 12 months through September 2013. It is expected
to generate net cash accruals of INR71 million during 2013-14,
which are just sufficient to meet its debt obligations of INR70
million maturing during the year.
The Sri Lakshmi Narasimha group reported a net loss of INR6
million on net sales of INR1144 million for 2012-13, as against a
profit after tax of INR0.3 million on net sales of INR474 million
for 2011-12.
Set up in 2004, SLNP is engaged in the poultry business. SLNP is
promoted by Mr. Satyanarayana Raju and his family members.
Set up in 2011, KJL is also engaged in the poultry business. KJL
is also promoted by Mr. Satyanarayana Raju and his family members.
SRI RAVICHANDRA: CRISIL Assigns 'B+' Rating to INR330MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term
bank facilities of Sri Ravichandra Textiles Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable
Long Term Loan 230 CRISIL B+/Stable
The rating reflects SRTPL's below-average financial risk profile
marked by high gearing and moderate debt protection metrics, the
susceptibility of its margins to volatility in cotton prices, and
its large working capital requirements. These rating weaknesses
are partially offset by the benefits that SRTPL derives from its
promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that SRTPL will continue to benefit over the
medium term from its promoters' strong track record in the cotton
business. The outlook may be revised to 'Positive' in case of
considerable improvement in SRTPL's financial risk profile, marked
by significant improvement in its revenue and profitability.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-expected revenue and profitability, or large debt-
funded capital expenditure, leading to deterioration in its
financial risk profile.
SRTPL, incorporated in 2010, manufactures cotton yarn, primarily
in counts of 10s and 20s. The company's manufacturing facilities
are in Guntur (Andhra Pradesh), and started commercial production
in November 2012.
SRTPL reported a net profit of INR3.5 million on net sales of
INR218.2 million in the first four months of its operations.
SVR SPINNING: ICRA Assigns 'B' Rating to INR17cr Long Term Loans
----------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to INR17.00
crore fund based facilities of SVR Spinning Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 17.00 [ICRA]B assigned
Based Limits
The assigned rating is constrained by moderate financial risk
profile characterized by moderate gearing and weak coverage
indicators. The rating is also constrained by small scale of
operations; commoditized nature of product and fragmented nature
of industry with high competition from large number of players
which limits the ability to pass on the hike in the input costs.
Further, ICRA notes that the term loans availed for the capex are
yet to be covered under TUFS as a result the interest burden has
been high thereby resulting in low net profitability and stretched
coverage indicators. The proposed debt funded capex for doubling
the existing capacity could stretch the gearing and coverage
indicators in the near term. However, the rating favourably
factors in more than three decades of experience of the promoters
in textile business; proximity of spinning unit to cotton growing
areas resulting in lower transportation costs and recent vintage
of plant and machinery leading to operational efficiencies.
The ability of the firm to improve the spread between yarn
realizations and average lint procurement cost will remain key
rating sensitivity along with timely commissioning of proposed
capacity expansion and funding mix for the same.
SVR Spinning Mills Private Limited was incorporated in
Malleshwaram in West Godavari district of Andhra Pradesh as a
private limited company in September 2010 and was promoted by Ms.
S Bharathi, Mr. S. Sirish Aditya and Mr. K Govinda Rao. The
company started its operations from December 2011 with an
installed capacity of 12,000 spindles.
TDI INTERNATIONAL: ICRA Assigns 'B' Ratings to INR72.62cr Loans
---------------------------------------------------------------
A long-term rating of '[ICRA]B' has been assigned to the INR62.62
crore term loan facilities and INR10.00 crore long-term fund based
working capital facilities of TDI International India Private
Limited. A short-term rating of '[ICRA]A4' has been assigned to
INR69.00 crore short-term non-fund based working capital
facilities of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 62.62 [ICRA]B assigned
Long-term Fund-
Based Working
Capital Facilities 10.00 [ICRA]B assigned
Short-term Non-
Fund Based Working
Capital Facilities 69.00 [ICRA]A4 assigned
The assigned ratings take into consideration the established track
record of the promoters in the out of home advertising space with
key focus on transit media advertising; established relationships
with AAI and DMRC as the first concessionaire in the organized
advertising space; healthy gross margins in media services
offering one-stop solution to clients; location advantage with
presence in six of the top ten domestic airports in terms of
passenger traffic and professional management and control with GPC
Mauritius IX LLC. The ratings further derive comfort from the
healthy growth opportunities in the transit media advertising
segment in line with infrastructure development projects being
undertaken by the government and the company's well diversified
client profile which helps mitigate the seasonality inherent to
the out of home advertising industry. The ratings are, however,
constrained on account of the weak operating performance of the
company over the last three years in line with high license fee
obligations and reduced utilization levels across advertising
assets although surrender of non-performing assets is expected to
improve profitability going forward; higher working capital
requirements in line with extended receivable days inherent to the
media industry; weak bargaining power with clients and stretched
financial profile marked by a negative networth due to accumulated
losses albeit fresh equity infusion from PE investor in FY13 and
restructuring of debt obligations provides some comfort.
The company also has high contingent liabilities with respect to
corporate guarantee extended to group company, Bhadra
International India Private Limited, and disputed license fee and
interest obligations towards AAI and DMRC which constrain the
ratings further. With airport concessions due for renewal in the
near term and expected changes in terms of DMRC concessions; the
ability of TDI to renew the same at competitive rates and achieve
healthy occupancy levels in a muted economic growth scenario shall
remain a key rating sensitivity going forward. Nonetheless, the
established track record of the company in the out of home
advertising, especially airport advertising, over the last two
decades provides some comfort.
TDI International India Private Limited was established in 1986 by
Mr. Prem Bajaj to provide Out of Home (OOH) advertising services.
The company ventured into the airport advertising space in 1986
with its first contract with Indira Gandhi International Airport
and subsequently won the first ever advertising rights tender
floated by Airport Authority of India (AAI) in 1987 providing the
company access to key metro airports- Kolkata, Chennai, Trivandrum
and Mumbai. Over the years the company has emerged as the single
largest airport advertiser in India with over 5,000 advertising
sites spread across 9 Indian cities- Ahmedabad, Chennai, Kolkata,
Tirupati, Trivandrum, Calicut, Cochin, Goa and Pune.
In addition to airports; the company also enjoys advertising
rights at 22 metro stations in New Delhi awarded by Delhi Metro
Rail Corporation (DMRC). The company also provides other media
services like outdoor media, mobile and internet advertising,
strategic planning, media buying and creative media solutions.
The company has its corporate office in New Delhi and 22 regional
sales offices across India.
Recent Results
As per audited financials for FY 2013, the company reported a net
loss of INR27.78 crore on an Operating Income (OI) of INR107.98
crore as against a net loss of INR29.49 crore on an OI of
INR106.24 crore in FY 2012. As per provisional numbers for 8M FY
2014; the company reported a Operating Profit before Interest,
Depreciation and Tax (OPBDITA) of INR10.02 crore on an OI of
INR73.43 core.
UNIBIOS LABORATORIES: ICRA Cuts Rating on INR43.86cr Loans to 'D'
-----------------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR2.70
crore term loans, and INR36.00 crore, long-term, fund based
facilities of Unibios Laboratories Limited from '[ICRA]BB+' to
'[ICRA]D'. ICRA has also revised the short-term rating assigned to
the INR6.50 crore, short-term, non-fund based facilities of
Unibios from '[ICRA]A4+' to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loans 1.36 Revised from [ICRA]BB+
(Stable) to [ICRA]D
Long-term, fund
based limits 36.00 Revised from [ICRA]BB+
(Stable) to [ICRA]D
Short-term, non-
fund based limits 6.50 Revised from [ICRA]A4+
to [ICRA]D
The rating revision is on account of delays in servicing debt
obligation due to stretched liquidity profile arising from closure
of the manufacturing facilities of the company for a period of two
months. The financial profile of the company is characterised by
weak capital structure with suppressed coverage indicators, low
pricing power due to high concentration towards mature
therapeutics, and high working capital intensity of operation.
ICRA also notes that close to 55% of sales for Unibios are through
institutional medium which are characterized by high competitive
pressure from domestic manufacturers, low pricing power and high
receivable days. ICRA also takes note of the strong revenue growth
witnessed in the past on account of increase in domestic sales and
addition to product portfolio of the company as well as the
experience of the management in the pharmaceutical manufacturing
industry. Nevertheless, going forward, bringing the manufacturing
facility at adequate utilization levels and regularization in
servicing of debt obligations will be the key rating sensitive
factors.
Unibios Laboratories Limited was incorporated in 1991 by the
promoter, Mr. Rajkumar Chawla, as a trading company for
pharmaceutical products. In 1994-95, the company decided to enter
into manufacture of formulations and took over a small unit in
Palghar, Maharastra. Their Palghar unit has two manufacturing
facilities, both of which are WHO GMP certified, with separate
provisions for manufacturing Beta-Lactam antibiotics.
Recent Results
For the twelve months ending March 31, 2013, Unibios reported
profit after tax (PAT) of INR2.3 crore on an operating income of
INR143.4 crore as compared to a profit of INR1.5 crore on an
operating income of INR121.0 crore for the twelve months ending
March 31, 2012.
VAMSEE OVERSEAS: ICRA Withdraws C Rating on INR13.75cr Term Loan
----------------------------------------------------------------
ICRA has withdrawn the '[ICRA]C' rating assigned to the INR13.75
crore term loan facilities of Vamsee Overseas Marine Private
Limited. The rating has been withdrawn at the request of the
company as the term loans have been repaid in full. There is no
amount outstanding against the rated instruments.
VENUS GARMENTS: CRISIL Reports Enhanced 'B+'-Rated Loan Amounts
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Venus Garments (India)
Ltd continue to reflect VGIL's weak financial risk profile, marked
by negative net worth on account of derivative losses incurred on
deals entered in 2007-08, high gearing, weak debt protection
metrics, and large working capital requirements. The ratings also
reflect susceptibility of the company's operating margin to
volatility in rupee-dollar exchange rates. These rating weaknesses
are partially offset by the extensive experience of VGIL's
promoters in the garment manufacturing business and its
established client base.
Rated amount enhanced
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing Credit 540 CRISIL A4
Letter of credit &
Bank Guarantee 110 CRISIL A4
Proposed Long Term
Bank Loan Facility 52.9 CRISIL B+/Stable
Term Loan 906.2 CRISIL B+/Stable
CRISIL had, on January 21, 2014, upgraded its rating on the long-
term bank facilities of VGIL to 'CRISIL B+/Stable' from 'CRISIL B-
/Stable' while reaffirming its rating on the company's short-term
facilities at 'CRISIL A4'. The rating upgrade reflects improvement
in VGIL's business risk profile as reflected in operating revenues
of INR1.45 billion for the first half of 2013-14 (refers to
financial year, April 1 to March 31). VGIL is expected to register
healthy revenue growth for the full year of 2013-14, backed by
increased exports and stronger profitability. The rating upgrade
also factors in sustained improvement in VGIL's liquidity, backed
by stronger-than-expected net cash accruals. The company's net
cash accruals are expected to be between INR120 million and INR140
million in 2013-14. The improved accruals provide adequate cushion
to meet maturing debt obligations of about INR83 million for 2013-
14.
Outlook: Stable
CRISIL believes that VGIL will improve its financial risk profile
over the medium term, most likely through higher accretion to
reserves and closure of derivative deals in 2012-13, which VGIL
had entered into in 2007-08. The outlook may be revised to
'Positive' if the company reports significant improvement in
turnover and profitability, resulting in higher-than-expected cash
accruals, or if its promoters infuse substantial capital, leading
to improvement in its financial risk profile, particularly capital
structure. Conversely, the outlook may be revised to 'Negative' if
VGIL's profitability is lower than expected and if large working
capital requirements and debt-funded capital expenditure lead to
weakening in its financial risk profile, particularly liquidity.
Incorporated in 1999, VGIL manufactures and exports ready-made
garments. The company's products include polo shirts, T-shirts,
jogging suits, sweat shirts, thermal wear, and sweaters, which are
mainly exported to the US, Europe, Mexico, Canada, and other
countries.
VIKAS BUILDERS: CRISIL Assigns 'B' Rating to INR150MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Vikas Builders.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 150 CRISIL B/Stable
The rating reflects VB's susceptibility to project implementation
risks and to cyclicality in the real estate industry in India.
These rating weaknesses are partially offset by the extensive
experience of VB's promoter in the real estate industry and the
funding support that the firm receives from them.
Outlook: Stable
CRISIL believes that VB will continue to benefit over the medium
term from its promoter's extensive experience in the real estate
industry and the funding support that it receives from him. The
outlook may be revised to 'Positive' in case VB completes its
project on time and registers better-than-expected customer
bookings, resulting in improvement in its liquidity. Conversely,
the outlook may be revised to 'Negative' in case VB faces time or
cost overrun in its project, or in case of lower-than-expected
ramp up in customer bookings, resulting in weakening of its
liquidity.
VB, set up in 2013, is currently executing a residential
redevelopment project at Kalyan in Thane district (Maharashtra).
The firm, a proprietorship concern, is promoted by Mr. Harakchand
Jain.
VIZAG EXPORTS: ICRA Suspends 'B+' Rating on INR10cr Loan
--------------------------------------------------------
ICRA has suspended the long term rating of '[ICRA]B+' assigned to
the INR10.00 crore fund based facility (sub limit), and the short
term rating of '[ICRA]A4' assigned to the INR26.00 crore fund
based facility, INR7.00 crore fund based facility (sub limit), and
INR1.00 crore non-fund based facility of Vizag Exports. 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.
WEST COAST: CARE Reaffirms 'B' Rating on INR5cr Long-Term Loans
---------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
West Coast Ingots Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5 CARE B Reaffirmed
Short-term Bank
Facilities 8 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of West Coast Ingots
Private Limited continue to be constrained by its weak financial
risk profile characterised by the relatively small scale of
operations, low profitability, high leverage and weak liquidity
position. The ratings further continue to be constrained by the
cyclical nature of the steel industry, susceptibility of operating
margins to volatility in raw material prices and its linkage with
a group company having a weak financial risk profile.
The ratings, however, continue to derive strength from the
company's long track record with experienced promoters and their
financial support in the past.
The ability of WCIPL to improve its overall financial risk profile
along with an improvement in its liquidity position remains the
key rating sensitivity.
Incorporated in 1997, by Mr Harsh Vardhan Mittal, West Coast
Ingots Private Limited (WCIPL) is engaged in the business of
manufacturing Mild Steel (MS) ingots with an installed capacity of
32,000 Metric Tonnes Per Annum (MTPA). The revenue stream of the
company is concentrated as in FY13 (refers to the period April 1
to March 31), 98% of sales were made to a group company, Mohit
Ispat Ltd (MIL). MIL is engaged in the manufacturing of thermo-
mechanically-treated (TMT) bars and the sale of the company is
through local distributors in the states of Goa, Karnataka, Kerela
and Maharashtra.
During FY13, WCIPL earned a PAT of INR 0.31 crore on a total
operating income of INR74.40 crore as against a PAT of INR0.54
crore on a total operating income of INR70.70 crore in FY12.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Jan. 20 to Jan. 24, 2014
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COMMONWEALTH BANK OF 1.50 4/19/2022 AUD 73.18
DBCT FINANCE PTY LTD 2.96 6/9/2026 AUD 74.60
EXPORT FINANCE & INS 0.50 6/15/2020 NZD 74.43
GRIFFIN COAL MINING 9.50 12/1/2016 USD 72.38
GRIFFIN COAL MINING 9.50 12/1/2016 USD 72.38
MIRABELA NICKEL LTD 8.75 4/15/2018 USD 28.38
MIRABELA NICKEL LTD 8.75 4/15/2018 USD 35.00
NEW SOUTH WALES TREA 0.50 9/14/2022 AUD 68.70
NEW SOUTH WALES TREA 0.50 10/7/2022 AUD 68.45
NEW SOUTH WALES TREA 0.50 10/28/2022 AUD 68.23
NEW SOUTH WALES TREA 0.50 11/18/2022 AUD 67.42
NEW SOUTH WALES TREA 0.50 3/30/2023 AUD 68.72
NEW SOUTH WALES TREA 0.50 2/2/2023 AUD 69.25
NEW SOUTH WALES TREA 0.50 12/16/2022 AUD 69.73
NEWCREST FINANCE PTY 5.75 11/15/2041 USD 74.43
NEWCREST FINANCE PTY 5.75 11/15/2041 USD 74.27
PALADIN ENERGY LTD 6.00 4/30/2017 USD 74.15
TREASURY CORP OF VIC 0.50 11/12/2030 AUD 46.26
TREASURY CORP OF VIC 0.50 3/3/2023 AUD 69.95
TREASURY CORP OF VIC 0.50 8/25/2022 AUD 71.49
CHINA
-----
CENTRAL HUIJIN INVES 4.20 9/20/2040 CNY 72.60
CHINA DEVELOPMENT BA 3.80 10/30/2036 CNY 69.64
CHINA DEVELOPMENT BA 4.01 10/11/2035 CNY 72.86
CHINA GOVERNMENT BON 1.64 12/15/2033 CNY 58.24
CHINA RAILWAY CORP 4.10 11/15/2036 CNY 73.40
INDONESIA
---------
DAVOMAS INTERNATIONA 11.00 12/8/2014 USD 23.88
DAVOMAS INTERNATIONA 11.00 12/8/2014 USD 23.88
INDONESIA TREASURY B 6.38 4/15/2042 IDR 71.00
PERUSAHAAN LISTRIK N 5.25 10/24/2042 USD 74.06
PERUSAHAAN LISTRIK N 5.25 10/24/2042 USD 74.55
PERUSAHAAN PENERBIT 6.10 2/15/2037 IDR 70.33
PERUSAHAAN PENERBIT 6.75 4/15/2043 IDR 75.19
INDIA
-----
3I INFOTECH LTD 5.00 4/26/2017 USD 36.25
CORE EDUCATION & TEC 7.00 5/7/2015 USD 29.75
COROMANDEL INTERNATI 9.00 7/23/2016 INR 15.47
DEWAN HOUSING FINANC 5.50 9/24/2023 INR 74.46
DR REDDY'S LABORATOR 9.25 3/24/2014 INR 4.99
GTL INFRASTRUCTURE L 2.53 11/9/2017 USD 30.95
INDIA GOVERNMENT BON 0.24 1/25/2035 INR 17.75
JCT LTD 2.50 4/8/2011 USD 20.00
MASCON GLOBAL LTD 2.00 12/28/2012 USD 10.00
PRAKASH INDUSTRIES L 5.25 4/30/2015 USD 50.50
PRAKASH INDUSTRIES L 5.63 10/17/2014 USD 56.63
PYRAMID SAIMIRA THEA 1.75 7/4/2012 USD 1.00
REI AGRO LTD 5.50 11/13/2014 USD 50.25
REI AGRO LTD 5.50 11/13/2014 USD 50.25
SHIV-VANI OIL & GAS 5.00 8/17/2015 USD 22.38
SUZLON ENERGY LTD 5.00 4/13/2016 USD 48.84
SUZLON ENERGY LTD 7.50 10/11/2012 USD 60.25
VIDEOCON INDUSTRIES 6.75 12/16/2015 USD 73.44
JAPAN
-----
ELPIDA MEMORY INC 0.50 10/26/2015 JPY 14.75
ELPIDA MEMORY INC 0.70 8/1/2016 JPY 11.38
ELPIDA MEMORY INC 2.10 11/29/2012 JPY 16.00
ELPIDA MEMORY INC 2.03 3/22/2012 JPY 16.00
ELPIDA MEMORY INC 2.29 12/7/2012 JPY 16.00
JAPAN ATOMIC POWER C 1.42 12/25/2019 JPY 73.38
JAPAN ATOMIC POWER C 1.28 9/25/2020 JPY 72.88
JAPAN ATOMIC POWER C 1.48 2/25/2021 JPY 71.50
JAPAN EXPRESSWAY HOL 0.50 3/18/2039 JPY 70.47
JAPAN EXPRESSWAY HOL 0.50 9/17/2038 JPY 71.07
TOKYO ELECTRIC POWER 1.96 7/29/2030 JPY 73.88
TOKYO ELECTRIC POWER 2.37 5/28/2040 JPY 69.88
PHILIPPINES
-----------
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
SOUTH KOREA
-----------
EXPORT-IMPORT BANK O 0.50 10/23/2017 TRY 67.02
EXPORT-IMPORT BANK O 0.50 12/22/2017 TRY 66.08
EXPORT-IMPORT BANK O 0.50 1/25/2017 TRY 72.31
EXPORT-IMPORT BANK O 0.50 11/28/2016 BRL 71.27
EXPORT-IMPORT BANK O 0.50 10/27/2016 BRL 72.17
EXPORT-IMPORT BANK O 0.50 12/22/2017 BRL 62.51
EXPORT-IMPORT BANK O 0.50 12/22/2016 BRL 70.62
EXPORT-IMPORT BANK O 0.50 11/21/2017 BRL 63.03
EXPORT-IMPORT BANK O 0.50 9/28/2016 BRL 72.91
EXPORT-IMPORT BANK O 0.50 8/10/2016 BRL 74.81
TONGYANG CEMENT & EN 7.50 4/20/2014 KRW 70.00
TONGYANG CEMENT & EN 7.30 4/12/2015 KRW 70.00
TONGYANG CEMENT & EN 7.50 9/10/2014 KRW 70.00
TONGYANG CEMENT & EN 7.50 7/20/2014 KRW 70.00
TONGYANG CEMENT & EN 7.30 6/26/2015 KRW 70.00
SRI LANKA
---------
SRI LANKA GOVERNMENT 5.35 3/1/2026 LKR 70.51
SINGAPORE
---------
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 14.38
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 14.63
BLD INVESTMENTS PTE 8.63 3/23/2015 USD 28.88
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 69.35
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 67.55
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 67.75
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 67.13
ENERCOAL RESOURCES P 9.25 8/5/2014 USD 60.15
GENCO SHIPPING & TRA 5.00 8/15/2015 USD 52.55
INDO INFRASTRUCTURE 2.00 7/30/2010 USD 1.88
OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 74.83
THAILAND
--------
G STEEL PCL 3.00 10/4/2015 USD 13.63
MDX PCL 4.75 9/17/2003 USD 17.75
*********
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
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about which we report.
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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, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
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